opman pass

7/28/2019 Opman Pass

1/95

TEAZE

MILKTEAALCOMIXProfessional SuperstrongG


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INDUSTRYANALYSIS


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ALCOHOLIC BEVERAGE INDUSTRYANALYSIS

AlcoholicBeverages

AlcoholicBeverages

Ready-to-drink +Premixes

Ready-to-drink +Premixes

Spirit-BasedRTDs

Spirit-BasedRTDs

P302 B P2.05B P1.56B


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ALCOHOLIC DRINKS INDUSTRY


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RTD BYVOLUME


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SPIRIT-BASED RTD TRENDS

66.2 %Volume

growth, 2005-2010

85.0%Value Growth,

2005-2010

Highest growth

among all RTD

categories.

Largest contributor

to RTD/ Premixes

sales.


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SPIRIT-BASED RTD TRENDS

Causes for Growth:

Economic Recovery-> More

gatherings & celebrations =

increased consumption

Growing cocktail culture

among women

Availability of more affordable

local brands


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MILK TEATREND

Rise in Milk Tea consumption in the past years,

Health & Wellness trend

Mainly sought for taste (survey)


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COMPETITIONANALYSIS- ALCOHOLIC DRINKS


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COMPETITIONANALYSIS - RTD DRINKS


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PRODUCT DESIGN


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OUR TARGET MARKET

18 to 30 years old

College Students & young professional

Middle C to Upper AB

Socially-active lifestyleValues taste in alcoholic drinks over strength

Regular consumption, especially in weekends


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TEAZE- MILKTEAALCOMIX

3 Flavors

CaramelBasic Milktea taste

WintermelonMost popular flavor of milkteas

Mint

Sales mix- 40% Wintermelon, 40% Caramel, 20%

Mint


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ISSUES IN PRODUCT FORMULATION

Stability of a 3-part system

Product Consistency

AlcoholAlcohol

MilkProtein

MilkProtein

BlackTea

BlackTea


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ISSUES IN PRODUCT FORMULATION

Spoilage

Curdling

Microbes

Life

Lower pH ( ~5)

Increase alcohol content (use

EFNA) Increase acidity (Acidulants:

calcium sulfate)

Use milk protein

Employ Pasteurization

Use stabilizers & Emulsifiers

Xanthan Gum/CMC

Use preservatives

Potassium Sorbate

Use PET instead of glass

Stability Issues Solution


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FORMULATION

Cups % mL(g)

Non-fat milk 0.3139 10.3 34

Water 1.86 61.05 201.4

Tea extract 0.3063 10.05 33.2

Flavoring 0.03 1.00% 3.3

Alcohol 0.25 8.00% 26.4

Sugar 0.25 8.00% 26.4

Milk Stabilizer 0.0135 0.45% 1.5

Emulsifier 0.03 1.00% 3.3

Preservatives 0.0030435 0.10% 0.3

Acidulants 0.00164349 0.05% 0.2

Total 3.04818699 100.00% 330.0


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COSTS OF RAW MATERIALS

QTY* RAW MATERIALS COST

Black tea extract P 240/ 600 g

Non-dairy creamer P 140/1 kg

Alcohol (ENA) /1000 mL

Black sugar P 690/5 kg

Fructose P 460/5 kg

Caramel Flavoring P 450/ 1230 mL

Wintermelon Flavoring P 375/1230 mL

Mint Flavoring

Preservatives

(PotassiumSorbate)

Stabilizers P 450/ kg

PET Bottles* P 2.73/350 mL


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PRODUCT LIFECYCLE - TEAZE

Introductory Stage

(1 year, 50% capacity,introduce product primarily

as alcomix )

Introductory Stage

(1 year, 50% capacity,introduce product primarily

as alcomix )

Growth Stage

(4 years, increase prod.Capacity, change sales mix)

Growth Stage

(4 years, increase prod.Capacity, change sales mix)

Maturity

(Focus: R&D newflavors)

Maturity

(Focus: R&D newflavors)

Decline

(Phase out someflavors)

Decline

(Phase out someflavors)

ProductDevelopment

(Start)

ProductDevelopment

(Start)


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PROCESS DESIGN

Refined Sugar,


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Milk Powder

WaterRefined Sugar,

Stabilizers, Emulsifiers

Dissolution Tank

Steam-Jacketed mixing Tank

Pasteurization (85 deg.C) and Cooling via

Cooling plates (20 deg.C)

HomegenizerAlcohol, flavoring,

preservatives and

colorant

Mixing Tank

Water

In-line mixer

Filler

Capper

Labeler

Cartoning

Dissolution Tank (40-60

deg C.)

Acidulant, Tea Extract,

Water


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MAJOR PROCESS STAGES

Dissolution Primary Mixing Pasteurization

HomogenizationSecondary

MixingIn-line Mixing

Filling Packaging


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MAJOR PROCESS STAGES

Dissolution

Milk powder, sugar and tea extracts do not come in

liquid form.

Dissolution enables these solid materials into

solutions with the aid of water.

Pasteurization

Heating to and immediate cooling, to slows microbial

growth.

Homogenization Intensive blending of milk, & tea to formdifferent

insoluble phases and obtain a stable

suspension/emulsion.


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CAPACITY PLANNING


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CAPACITYPLANNINGFORECASTING DEMAND

Target

Market

(18-30 yrs

old)

% Willing

to buy

product (

survey)

%

Market

share

per

year

No. of

bottles

consumed

/person

Forecasted

Demand

(330 mL

bottles)

Demand

(liters)

Cases

(24

bottles

)

23, 187, 921 0.451 5 2 1,045, 775345,

105.83

45,

573.97


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BASIS FOR ESTIMATING CONSUMPTION

ResearchLiters per

capitamultip

lierLiters per

capitabottles/pe

rson

Alcohol (spirit

based)

Consumption

2.91

L/person/yr 2.91 x 8% 0.2328 0.7054

TeaConsumption

0.49oz/person/yr 0.014493 x 41% 0.005942 0.018

Milk

Consumption

17.83L/pers

on/yr 17.83

x 41% x

25% 1.827575 5.538

AverageConsumption 0.688772 2.087


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CAPACITYPLANNING- MACHINES & EQUIPMENT

Dissolution Tanks

Steam Jacketed Mixing Tank

Cooling Plates

Homogenizer Bottle Filling Machine

Labeler

Cartoner

Conveyor Belts

In-Line Mixer

Mixing Tank


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Dissolution Tanks - vessels where raw materials

are processed, dissolved and mixed into a

solution; 600 diamter x1800mm (H); P210,000 ea
http://www.alibaba.com/product-gs/499454927/High_Efficient_Stainless_Steel_Food_Mixer/showimage.html


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Steam Jacketed Mixing Tank - is used for mixing

solutions at higher temperatures; also used for

pasteurization; 1.8 sq.meters; Php 95,000


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HomogenizerHeart of the system. Used in the

process in order to properly mix all the current

components in the mixture; 100(L) x 75(W) x 110

(H) cm; P100,000


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Cooling Plates/ Heat exchangersused to cool

solution before receiving alcohol; to put solution

in a lower temperature condition before

proceeding to the homogenizer
http://www.alibaba.com/product-gs/456202842/cooper_cold_plate/showimage.html


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In-line Mixer -the main line of the mixing

process; P100,000
http://www.alibaba.com/product-tp/117856419/Solid_Liquid_mixer/showimage.html


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Beverage Mixing Tankthis is where the final

mixing process is done before proceeding to filler

machine; 1100 x 1300 mm; P 61,500
http://www.alibaba.com/product-gs/492750629/Beverage_Mixing_Tank/showimage.html


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PET Bottle Filling line - used for rinsing, filling

and capping of the PET bottles that will contain

the product; 3500 x 2000 x 1800mm; P500,000
http://www.alibaba.com/product-gs/522885206/Automatic_Small_Capacity_Carbonated_Drink_Filling/showimage.html


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Labelling Machineused for labeling PET

bottles; 2000 L x 1000 W x 1250mm H; P362,900
http://www.alibaba.com/product-gs/427602014/Full_Automatic_Adhesive_Labeling_Machine_for/showimage.html


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Carton Packing Machineused for wrapping and

packing PET bottles; 2000x2300x2000mm;

P250,000
http://www.alibaba.com/product-gs/524939402/carton_packing_machine/showimage.html


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PET Bottle Conveyor Beltused to transfer the

PET bottles from one machine to another; 400L x

600mm (W); P80,000

WaterRefined Sugar,

Stabilizers Emulsifiers
http://www.alibaba.com/product-gs/249948441/PET_conveyor_belt/showimage.html


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Milk Powder

Dissolution Tank (100 L)

Stabilizers, Emulsifiers



Steam-Jacketed mixing Tank (300

L/hour)

Pasteurization (85 deg.C) and Cooling via

Cooling plates (20 deg.C)

Homegenizer (300

Liters/hour)

Alcohol, flavoring,

preservatives and

colorant

Mixing Tank (300 L/hr)

Water

In-line mixer (500 L/hr)

Filler (330 L/hr)

Capper ( 330 L/hr)

Labeler (594 L/hr)

Cartoning (594 L/hr)

Acidulant, Tea Extract,

Water


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DESIGN CAPACITY

Design Capacity

Qty Equipment Liters/hr Bottles/hr Cases/hrCapacity

Utilization

3 Dissolution Tanks 100 303 12.625 60%

1

Steam Jacketed

Mixing Tank 300 910 38 60%

20 Cooling Plates 600 1818 76 30%

1 Homogenizer 300 910 38 60%

1Bottle Filling

Machine330 1000 42

54.55%

1 Labeller 594 1800 75 30.3%

1 Cartoner 594 1800 75 30.3%

2 Conveyor Belts - - - 100%

5 In-Line Mixer 500 1515 63 36%

1 Mixing Tank 300 910 38 60%


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CAPACITY VS. DEMAND FORECASTING

Target

Demand Liters Bottles Cases

per hour 179.74 544.67 22.69

per day 1,437.94 4,357.40 181.56

per week 7,189.70 21,786.98 907.79

per month 28,758.82 87,147.94 3,631.16

in a year 345,105.83 1,045,775

43,573.9

7

System Capacity Liters Bottles Cases

per hour300.00 909.09 37.88

per day 2,400.00 7,272.73 303.03

per week 12,000.00 36,363.64 1,515.15

per month 48,000.00 145,454.55 6,060.61

per year 576,000.00 1,745,454.55 72,727.27


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LOCATION PLANNING


43/95

LOCATION PLANNING

MaximizeCapital

Investment

MaximizeCapital

Investment

Rent ratherthan buy

Rent ratherthan buy

Adequate Lot

size

Adequate Lot

size

Affordablemonthly costAffordablemonthly cost

Overall Location Strategy: Cost Focus


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LOCATION PLANNING

Main considerations: Infrastructure

Urban hotspot

Proximity to Commercialareas.

i.e. bars, clubs, convenience

stores, liquor retailers,

supermarketsProximity to Suppliers.

Quezon City ->Intraplas

Trading, Blue Isle Food and

Beverage Inc., Eunice Inc.


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LOCATION PLANNING

Possible Areas:

Taguig CityFood Terminal Inc. (FTI) Complex

Bian Laguna - Laguna Technopark Inc.

Quezon CityAn industrial area alongBalintawak


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LOCATION PLANNING

Option 1: FTI Plant in

Taguig

900 sq. m.

Php 110/ month

Monthly Rent: Php99,000

(+): Benefits from Govtincentives; recognized

industrial estate; near

commercial areas

(-): Moderately distanced from

suppliers


47/95

LOCATION PLANNING

Option 2: Laguna Technopark

Plant

858 sq. meters

Rental rate - Php 110/sq. meter

Monthly Rent: Php 94,380

(+): Found in a competitive industrial

hotspot; can attract quality labor;

near industrial machinery(-): Far from main urban commercial

areas, far from suppliers.


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LOCATION PLANNING

Option 3: Balintawak Plant

900 sq. m

Php130/ sq. m.

Monthly Rent: Php 117,000

(+): Near suppliers; near commercial

areas; easy access to public

infrastructure(-): Not a prominent/ well-known

industrial area; most expensive

monthly rate


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FACTOR RATING METHOD

Factor WeightFTI Laguna Balintawak

Score Points Score Points Score Points

Distance from

Suppliers

25 3 75 1 25 4 100

Distance from

main highways20 4 80 3 60 4 80

Lease Costs 25 4 100 4 100 3 75

IndustrialEnvironment

10 3 30 3 30 2 20

Infrastructure

present20 3 60 2 40 4 80

TOTAL 100 16 345 12 255 17 355


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FACILITIES LAYOUT


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FACILITIES LAYOUT

Layout Basis:Asia Brewery Inc.Overall Layout Strategy: Process-Oriented


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FACILITIES LAYOUT

Main Considerations:

Close proximity between mixing

machines

Utilize efficient piping system

Separate section for mixing and assembly.

Raw material storage near starting

equipment.

Shipping & receiving area near finished

goods storage + main office.


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FACILITIES LAYOUT

Plant will be divided into 3 main Areas:

Mixing AreaMixing Area

Raw MaterialStorage Cells (3)

Dissolution Tank(3)

Mixing Tank (2)

Homogenizer

Assembly AreaAssembly Area

Filling Machine

Bottler (built-in)

Packager (built-in)

Logistics AreaLogistics Area

Finished GoodsArea

Shipping &Receiving Area

Main Office

Storage Warehouse


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LAYOUT PLANNING


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FACILITIES LAYOUT

Main Features of layout:

Segmented/sectioned areas

Easy to follow

Rotational movement of whole process flow

Able to cut through sections for better traffic


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FACILITIES LAYOUT

Mixing Area

Single direction and flow of materials

No back and forth flow of liquid in pipes

Makes a U-turn connecting to the packaging

machine

Computer-aided


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FACILITIES LAYOUT

Assembly Area:

Directly parallel and adjacent to mixing area

Easy to inspect mixers and assembly machine with less

people

Exit point of packaging machine has good proximitybetween storage and finished goods

Finished goods bay connected to vehicles dock for

outbound activity


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FACILITIES LAYOUT

Logistics Area

Main plant office and inbound/outbound dock for

vehicles

Easy to inspect and evaluate all incoming raw

materials and outbound products Immediate Initial and Final inspection of process


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DESIGN OFWORK SYSTEMS


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DESIGN OF WORKSYSTEMS

Divided into 4

departments

Minimum wage for

manual labor Cost effective = 25

employees

Sales & Finance merged

in a single dept.


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DESIGN OF WORKSYSTEMS

Headed by an

Administrative Board

Professionals who oversee

the overall operations.

Supply Chain Manager

Plant Manager

Marketing Manager

Sales Manager


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SUPPLY CHAIN MANAGEMENT


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SUPPLYCHAIN MANAGEMENT

Receiving ofRaw Materialsfrom Suppliers

InboundLogisticsInboundLogistics

Manufacture ofTeaze product

ProductionProductionShipping to

retailers &distributors

OutboundLogisticsOutboundLogistics

Processesorders &handlespromotions

Marketing &

Sales

Marketing &

Sales


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Overall Strategy: Cost maximization -> Buildrelations with small-to-medium sized

suppliers:

1. Intraplas Trading

2. Blue Isle Food and Beverage Inc.

3. Eunice Chemicals Inc.


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Main Distribution Channels

Convenience Stores

Supermarkets

Bar & Restaurants

Nightclubs


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INVENTORY MANAGEMENT


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INVENTORY MANAGEMENT

CompanyInventoryCompanyInventory

RawMaterials

Finishedgoods

Only 2 main inventory

classes

No work-in-process

Overall Strategy:

ProductionOrder

Quantity (POQ)


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INVENTORYMANAGEMENT

Set-up Cost Qty Price Total

Forklift Driver 2 426 852

Logistics Head 1 426 426

Machine Workers 2 426 852

2130

Holding Cost

Storage Rent 225 130 29250

Inventory and

Materials Officer 1 426 426

29676

Year 1 Year 2

d=daily

demand rate4,357 4638

p=daily

Production

rate

7272.73 7272.73

D=annual

demand 1045775 1113070


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INVENTORYMANAGEMENT

Year 1Daily Demand in mL

(g)POQ in mL(g)

Non-fat Milk 148.11 1373

Tea Extract 144.51 1340

Alcohol 115.04 1066

Sugar 115.04 1066

PET 4,358 bottles 40,396 bottles


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INVENTORYMANAGEMENT

Year 2 Daily Demand in mL(g) POQ in mL(g)

Non-fat Milk 157.64 1444

Tea Extract 153.81 1409

Alcohol 122.44 1122

Sugar 122.44 1122

Bottle 4,638 bottles 42,491 bottles


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INVENTORYMANAGEMENT

ROP Year 1(mL or g)

Year 2(mL or g)

Non-fat Milk 444 473

Tea Extract 434 461

Alcohol 345 367

Flavoring 71.90 76.52

Sugar 345 367

Milk Stabilizer 32.35 34.44

Emulsifier 71.90 76.52

Preservatives 7.19 7.65Acidulants 3.59 3.83

Bottle 21787 bottles23189

bottles


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AGGREGATE PLANNING


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AGGREGATE PLANNING

Since process design is machineintensive, main strategies for meeting

demand is:

Increasing machine utilization

-Based on annual forecasted demand increase


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Period (Years) 1 2 3 4 5

Forecast (in cases) 43,574 46,378 49,084 51,732 54,381

% Utilization used 60% 64% 0.68 0.72 0.75

Output in cases Regular 43574 46546 49455 52364 54546

Overtime - - - - -

Subcontract - - - - -

Output-Forecast 0 168 371.04 632 165

Inventory

Beginning 43,574 0 167.92 538.96 1171.12

Ending 0 168 539 1,171 1,336

Average 21787 83.96 353.44 855.04 1253.62


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MATERIALS REQUIREMENTS

PLANNING


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BILL OF MATERIALS

DESCRIPTION QUANTITY

Black tea extract 34.0 g

Non-fat Milk 33.2 g

Water 201.4 mL

Alcohol (ENA) 26.4 mLSugar 26.4 g

Flavoring C/W/M 3.3 mL

Milk Stabilizer 1.5 mL

Emulsifier 3.3 mL

Preservatives (Sodium Benzoate) 0.3 mL

Acidulants (Phosphoric Acid) 0.2 mL

330 mLPET Bottles* 1 pc

MATERIALS REQUIREMENTS PLANNING


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(MRP)Week

Milk (g) 0 1 2 3 4 5 6 7 8Gross Requirements 740.55 740.55 740.55 740.55 740.55 740.55 740.55 740.55

Scheduled Receipts

Projected on handinventory 2962.2 2962.2 2221.65 1481.1 740.55 1373 632.45 1481.1 740.55

Net POQ Requirements 0 108.1 0

Planned ordered receipts 1373 1373 1373

Planned ordered releases 1373 1373 1373

Tea (g) 0 1 2 3 4 5 6 7 8

Gross Requirements 722.55 722.55 722.55 722.55 722.55 722.55 722.55 722.55

Scheduled Receipts







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(MRP)Alcohol (mL) 0 1 2 3 4 5 6 7 8

Gross Requirements 575.2 575.2 575.2 575.2 575.2 575.2 575.2 575.2

Scheduled Receipts





PET Bottles (unit) 0 1 2 3 4 5 6 7 8

Gross Requirements 21790 21790 21790 21790 21790 21790 21790 21790

Scheduled Receipts

Projected on hand inventory 87160 87160 65370 43580 21790 42491 20701 43580 21790

Net POQ Requirements 0 1089 0





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(MRP)

Month

Emulsifier 0 1 2 3 4 5 6 7 8 9 10 11 12

GrossRequirements

287.6 287.6 287.6 287.6 287.6 287.6 287.6 287.6 287.6 287.6 287.6 287.6

Scheduled

ReceiptsProjected on handinventory 1725.6

1725.6 1438

1150.4 862.8 575.2 287.6

1725.6 1438

1150.4 862.8 575.2 287.6

Net POQ

Requirements 0 0 0

Planned orderedreceipts

1725.6

1725.6

Planned orderedreleases

1725.6

1725.6


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SCHEDULING


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SCHEDULING

Pre-Operational Schedule


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SCHEDULING

Operational Schedule


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SCHEDULING

Year 1 Production scheduling will reflect roll-outmarketing strategy for introduction of Alcomix

flavors.

Jan-Mar -> 100% Wintermelon

Apr-Jun-> 50% Wintermelon, 50% Caramel

Jul-Dec-> 40% Wintermelon, 40% Caramel, 20%

Mint

o Year 2 ownwards will follow the same (40:40:20)

production mix for all flavors

Year 1 Production Schedule


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Jan Feb March April May Jun July Aug Sept Oct Nov Dec TOTAL

Working Days 23 20 23 22 23 22 23 23 22 23 22 23 269

Daily Output in

Cases (60%

Utilization)

182 182 182 182 182 182 182 182 182 182 182 182 2184

Monthly Output in

cases (60%

Utilization)

4186 3640 4186 4004 4186 4004 4186 4186 4004 4186 4004 4186 48958

Production Mix

(per Case, 24

bottles)

Wintermelon 4186 3640 4186 2002 2093 2002 1674.4 1674.4 1601.6 1674.4 1601.6 1674.4 28009.8

Caramel 0 0 0 2002 2093 2002 1674.4 1674.4 1601.6 1674.4 1601.6 1674.4 15997.8

Mint 0 0 0 0 0 0 837.2 837.2 800.8 837.2 800.8 837.2 4950.4


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Monthly Production Schedule for all 3

flavors

Week 1 Week 2 Week 3 Week 4 TOTAL

Working Days 5 5 5 8 23

Daily Output in Cases

(60% Utilization) 182 182 182 182 728

Weekly Output in Cases 910 910 910 1456 4186

Production Mix (per Case,

24 bottles)

Wintermelon 910 764 0 0 1674Caramel 0 146 910 618 1674

Mint 0 0 0 837.2 837.2


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TOTAL QUALITY MANAGEMENT


90/95

TOTAL QUALITYMANAGEMENT

Quality assurance is used for

both consistency and

improvement

2-part roots for QA in Alcomix

Mixture consistency

Safety


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Refractometer

Physical level

inspection

pH meter

Bacteria Culture

Mixture Consistency Safety


92/95


RefractometerMeasures brix index: amount of dissolved sugar

Measures how much speed of light is reduced when

passing through liquid

Can be used to determine proportionality of

componentsMore refraction, more particles

Can be administered in any step of the alcomix

production process


93/95


pH Meter Measures the pH level or

acidity-basicity of a

solution

Will determine if it is at anacidity that inhibits

bacterial growth


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Culture Test Tests whether it cultures

microbes inefficiently when

placed in ideal microbial

growth conditions

Ideal when it cultures slower

than a sample without any

preservatives

Can be compared with a known

standard sample, measuredusing time and quantity of

colonies born in a dish


95/95


Physical level inspection Color comparison-

Comparing test sample color

to known color

Helps determine if there areproportional parts of major

components: milk, water, tea

Taste test- Physical palette

testing comparing to

standard

Helps determine if it is close to

the ideal taste

opman pass

Documents