Company

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Profile
CHAPTER 1
COMPANY PROFILE

This chapter presents the details of the background of the company being studied inclusive of its
philosophy as embodied by its mission and vision statements, together with its major client,
organizational structure, as well as the researchers’ and company’s area of concern.

1.1 COFIPAC Corporation History

COFIPAC Corporation started operating on 05 September 1994 at Tan-Tiong Building,

Osmeña Street, Cagayan de Oro City with just about twelve employees and having only two

machines with a maximum production of 6,000 cases per month. In May of 1997, the company

added six machines and transferred to a larger site at TTT International Warehouse, Julio Pacana

Street, Puntod, Cagayan de Oro City. The production increased to 20,000 cases per month and

soared manpower. In less than five years the company has grown from two machines to twenty

four machines and with more than seven hundred employees. At present, COFIPAC

CORPORATION corporate office and production warehouse has finally nested in the 16-hectare

location at Agripino Neri Sr. Street, Tablon, Cagayan de Oro City. The company aims for

continual expansion as a service-provider and improvement for total quality management. And

for future expansion, COFIPAC Corporation is aiming global. COFIPAC Corporation was

founded by the TAN and LIM families, they were known coffee traders in Cagayan de Oro City

until they were invited by Nestle Philippines, Incorporated as its qualified co-manufacturer.

1.2 Company Objectives

The organizational philosophy of COFIPAC Corp. is positioned by the declaration

provided by its Mission and Vision Statements.

BACKLOGS REDUCTION IN COFIPAC CORP. MILO PACKING PROCESS | Ablanque • Fontiveros • Khu
 Company
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Profile
1.2.1 Mission Statement

Assuring Consumers with Safe and Quality products at all times.

1.2.2. Vision Statement

COFIPAC Corporation envisions its company to be the best co-manufacturer in the

Philippines in the areas of Quality, Cost, Customer Service and Capabilities by 2012.

1.3. Nature of the Business

COFIPAC CORPORATION is an independent company and one of the co-manufacturer

of Nestle Philippines, Incorporated. The company co-manufacture products of Nestle

Philippines, Incorporated such as the 14.0 grams Nescafe (coffee) 3 in 1, 2.0 grams Nescafe

(coffee) Classic sticks, 5.0 grams Coffee-mate (non-dairy creamer), 20.0 grams Milo (Cocoa

with milk), 20.0 grams Milo (Cocoa with milk) with cereals, Litro pack Nestea (Tea) and 45.0

grams Nestea (Tea). Furthermore, the company follows the best practices of Nestle Philippines,

Incorporated, making it a quality service provider.

1.4. Organizational Structure

Presented in Figure 1.1 is the organizational structure of COFIPAC Corp., ranging from

its administration heads and staff down to its subordinates, followed by its respective work

descriptions in brief.

BACKLOGS REDUCTION IN COFIPAC CORP. MILO PACKING PROCESS | Ablanque • Fontiveros • Khu
 Figure 1.1
COFIPAC Corporation Organizational Structure

PLANT MANAGER
Carolyn C. Tan

OPERATIONS MANAGER
Joyliz Pobre

SHE OFFICER I SHE OFFICER II

GENERAL SERVICE & QUALITY ASSURANCE

BACKLOGS REDUCTION IN COFIPAC CORP. MILO PACKING PROCESS | Ablanque • Fontiveros • Khu
 1.4.1. The Plant Manager

1.4.2. The Operations Manager

1.4.3. The Pollution Control Officers I and II

The Safety, Health, and Environment Officers identify, plan, monitors, and

records training needs for personnel whose works may create a significant impact upon

the environment; to train employees at each relevant function and level so they are aware

of the environmental policy, significant environmental aspects, their roles and

responsibilities in achieving conformance with the policy and procedures, and with the

requirements of the environmental management system.

1.4.4. The General Services and Maintenance Department Head

The GSM head is responsible for managing the Hygiene and Sanitation Program

of the Factory. GSM head ensures that all identified sanitation requirements of the

different areas in the factory are met. It is also the responsibility of the GSM head to take

control of the incoming and releasing of the general supplies of the production.

BACKLOGS REDUCTION IN COFIPAC CORP. MILO PACKING PROCESS | Ablanque • Fontiveros • Khu
 1.4.5. The Quality Assurance Department Head

The QAD head is responsible for managing the development and implementation

of Quality Assurance Compliance systems and activities. This may include managing

training programs, auditing of the production, and Quality Control Areas, overseeing the

generation and review of documents or leading investigations and resolving potential

product quality issues to improve efficiency.

1.4.6. The Production Department Head

The PDH is responsible for managing daily operations in line, implementation of

producing safe and quality products. This may include managing training programs, and

ensure the personnel adherence to Nestle Good Manufacturing Practices of production.

Plan, do, and check on compliance to Food Management System. Ensure adequate

trainings of newly hired personnel assigned in production lines.

1.4.7. The Engineering Department Head

The Engineering Operations Head is responsible for performing, planning, and

overseeing solely in production operation and maintaining engineering documentation to

ensure that all areas, equipment, and activities passed the FSMS and SHE requirements.

1.4.8. The Finance Department Head

BACKLOGS REDUCTION IN COFIPAC CORP. MILO PACKING PROCESS | Ablanque • Fontiveros • Khu
 1.4.9. The Logistics Department Head

The Logistics Head is responsible for managing end to end logistics activities to

ensure smooth operations and optimal performance. He is responsible for managing

RM/PM inventory and coordinates with Nestle accredited supplier.

1.5. Area of Concern

The COFIPAC Corporation is increasing their production speed due to the great demand

of their products; because of that, their sales grow up. On the other hand, COFIPAC Corporation

encounters problems such as quality, cost, and the backlog of products in the packing

workstation. The COFIPAC Corporation and the researchers seek to study the reduction, if not

elimination, of backlogs in the packing workstation, and improve the workplace. Backlogs are

the accumulation of jobs not done or materials not processed that are yet to be dealt with.

Technically known as bottleneck effect, backlogs are disturbing problems in manufacturing

industry rooting its cause in organizational policies, externalities, and production operations. The

prevalence of this effect in productions can cause quality deterioration of the products, and

increase in storage costs. Both the COFIPAC Corp.’s and the researchers’ challenge is to find out

ways to lessen the effects of backlogs.

1.6. The COFIPAC Corporation Site Location

BACKLOGS REDUCTION IN COFIPAC CORP. MILO PACKING PROCESS | Ablanque • Fontiveros • Khu
 At present, COFIPAC CORPORATION corporate office and production warehouse has

finally nested in the 16-hectare location at Agripino Neri Sr. St., Tablon, Cagayan de Oro City

(See Figure 1.2). The contact persons are Mrs. Joyliz Pobre and Mrs. Florefheill Lucena . All of

them can be talked to by calling any of the number of cofipac corporation which are: (08822)

724-785, (08822) 721-206; (088) 857-5321; (088) 857-2453.

BACKLOGS REDUCTION IN COFIPAC CORP. MILO PACKING PROCESS | Ablanque • Fontiveros • Khu
 Figure 1.2
The COFIPAC Corporation Site Location

BACKLOGS REDUCTION IN COFIPAC CORP. MILO PACKING PROCESS | Ablanque • Fontiveros • Khu