Operations Manual in Operations Management, MGT 1141 Department of Agribusiness Management and Entrepreneurship, College of Economics and Management, University of the Philippines Los Banos College, Laguna Design by Kimbo Ras, 2015

1. Operations Manual
Aviles, Jannie Gracelyn
Leynes, Vonn Orland
Mortel, Pia Adelie
Ras, Kimbo
Tolentino, Ma. Yvette

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Picassio Operations Manual
Introduction
Siomai, a deliciously tasty dumpling of Chinese origin, is loved by many Filipinos. It
may be prepared in different ways, but the base is always pork. Some substitute a part
of the pork with shrimp meat. Siomai is commonly served with a dip mixture of soy sauce,
calamansi extract, and chili sauce. On the other hand, Picadillo, from the Spanish word
“picar” which means to “to mince”, is a traditional dish in the Philippines and some other
parts of the world, and is a favorite stuffing for several dishes and also a viand in several
occasions. It is generally made from ground meat, usually that of beef. Piccasio, or
PicadillongSIOmai, is a healthy combination of Picadillo and siomai. The name of the
product, Picassio, is due to the fact that the ingredients in this dish are somewhat similar
to that of the well-known Picadillo.
The highlight ingredient of this dish is the malunggay leaves (Moringa oleifera)
which is being promoted for the health of the students by the Department of Education.
It is at the same time being promoted by the Department of Health and the World
Health Organization as a low-cost health enhancer and contains remarkable medicinal
value.
This manual should explain the logistics of the firm’s operations. It should discuss
the production plant’s location and layout, its infrastructures, facilities, equipment, and
materials. The manual should also deal with the firm’s staffing plan, the production
process, the plant production capacity and an estimate of the firm’s financial viability.
Goals and plans of the company in the long run is also mentioned in the manual.

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Picassio Operations Manual
The company’s market should be the people of Laguna, especially in Los Baños
and Calamba City, because the start-up outlets should be placed in these sites to be
near the office and production branch in Los Baños.
Picadillong siomai shall be positioned as a healthy snack due to the vegetables
in its ingredients. It should be priced Php 30 per serving with each servings containing 3
Picadillong siomai and a pack of sauce.

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Picassio Operations Manual
Infrastructure,
Facilities, Equipment,
and Materials
Since heat is involved in the production process, a fire extinguisher is placed inside
the production area. One fire alarm switch should be placed at both the input and
output section of the kitchen.
There are three available and entry exit routes: front door and two back doors. A
CCTV camera should be installed in the production area in order to monitor the process
and watch over the area even during non-production days. Further installation of
cameras outside should be implemented once there is sufficient budget.
Two stoves are installed in order to accommodate simultaneous cooking of the
filling and the sauce. A stove hood should be positioned on top of each stove for smoke
ventilation. Exhaust fans should also be installed in order to cool the production area.
Three carrier vans, two of which are cooler vans, should be bought to aid the
transportation of raw materials and finished products in and out of the plant. Both the
input and output section should have a cold storage room.
Specific cooking materials required are frying pans, steamers, measuring cups,
LPG gas, food processors and other kitchen utensils. Given below are the ingredients for
the production of 36 pieces of siomai.

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Picassio Operations Manual
Table 1. Picassio siomai and sauce ingredients.
*Yields 20-22 servings with 3 pieces each.
For the filling:
Quantity Ingredient
50 mL Cooking oil
10 Grams garlic(minced)
25 Grams onion(minced)
500 Grams ground beef
123 Grams corn(shredded)
150 Grams carrots
7 Stalks malunggay
2
Pcs. med.
sized
Eggs(beaten)
25 Grams cornstarch
230 Grams
molo wrappers
(small)
15 Grams Iodized salt
1 Gram ground pepper
1 Gram seasoning
For the sauce:
Quantity Ingredient
25 mL cooking oil
10 grams garlic
25 grams green pepper(minced)
30 grams Sugar
120 mL soy sauce
7 mL calamansi juice

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Picassio Operations Manual
Layout Planning
Figure 1. Picassio plant floor plan.
The firm’s plant is a one story building featuring a lobby, an office room, a meeting
hall, two restrooms, a production area, two storage rooms and a parking lot at the back
of the building. The lobby is the connecting room between the administrative staff’s
area and the production area. The administrative staff’s area is divided into the office
room and the meeting hall. The office room is where the internal supervisor and the

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Picassio Operations Manual
external supervisor work. The meeting hall is where the employees can dine during their
break-time and where meetings are held.
The production area is divided into two sections: the inflow section and outflow
section. It is further divided into four stations: ingredient preparation, cooking, wrapping
and packaging. The production area is designed to be spacious in order to regulate air
flow since there is cooking involved. There should be two cold storage rooms: one in the
inflow section for raw materials, and the other at the outflow section of the finished
goods. The back door opens to the parking lot where cold mini carrier vans wait to
transport goods to and from the outlets and the suppliers, respectively.
For efficient mass production, the stations in the production area were placed
sequentially according to the procedure of making Picadillong siomai, starting from the
inflow of raw materials to the outflow of finished products. The production area is also
situated somewhat separate from the office area so that it could still be accessible to
the delivery men during non-production days of the plant.

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Picassio Operations Manual
Front view of the plant.
Top view of interior. Lobby (middle)

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Picassio Operations Manual
Top view of interior. Meeting Hall (left) and Manager’s Office (right).
Outflow storage (left). Comfort Rooms (center). Meeting Hall (right).

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Picassio Operations Manual
Top view kitchen. Inflow section (left) and Outflow section (right).
Rear view of the plant.

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Picassio Operations Manual
Staffing
Figure 2. Picassio organizational structure.
Kitchen assistants should be in charge of the basic food preparation, unloading
deliveries from the suppliers, organizing the storeroom, packaging and washing kitchen
appliances, work surfaces, floors and walls. There should be a total of 8 kitchen
assistants: 4 for the food preparation area and another 4 for packaging, inspecting and
storing the finished produce.
Line cooks are in charge of preparing siomai and siomai sauce. Two cooks should
be assigned for the cooking station while another 2 should be assigned in molo
wrapping station. They are led by a head cook in taste testing and quality checking.
Head Manager
Supervisor for
Internal Affairs
Head Cook
Line Cooks
Kitchen
Assistants
Delivery Men
& Drivers
Supervisor for
External Affairs
Outlet
managers
Outlet
employees

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Picassio Operations Manual
The head cook leads the team of kitchen workers and is in charge of quality
checking every line’s output. They are also in charge of tracking the kitchen’s inventory
in order to figure out how much should be ordered.
Delivery men and drivers are in charge of the distribution of finished products to
the outlets and transportation of the supplies needed for the production.
Outlet employees are in charge of selling and serving Picadillong siomai in their
respective outlets. They are headed by franchise managers who in turn reports the
performance of the store to the supervisors for internal affairs.
The administrative staff includes the franchise manager, the external affairs
supervisor, the internal affairs supervisor and the head manager. The franchise manager
mediates the demand for each outlet and maintains it given quality service. They are
also in charge of orienting the outlet employees of the business operation standards.
The internal affairs supervisor is in charge of human resource employment, production
management and the finance related to production. The external affairs supervisor
manages the franchise managers, arranges orders needed by the firm and is in charge
of marketing the product. The head manager overlooks all the operations that the firm
is doing from the production side to the marketing aspect. He is also in charge of the
business permits and other certifications needed by the firm.
Production runs for five days a week from 8am to 5pm while the outlets operate
based on mall hours. Delivery times should be done daily by 9am in order to prepare
before the malls’ regular opening hours.

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Picassio Operations Manual
Location Planning
The production site should be located within Los Baños. It was chosen for its
proximity to the suppliers from the junction market and other supermarket stores, and to
the main outlets.
It is proposed that two of the outlets be situated in Vega Center and another at
Robinson’s Town Mall. The other two should be situated in Crossing, Calamba. These
places were chosen because of the dense economic activity in these areas. They are
placed there to lessen the transportation costs from the production site.
Quality & Sanitation
Picassio shall observe, even without formal certification, the requirements in
possessing good manufacturing practices. The requirements include intensive training
and orientation on allergen control, cleaning and sanitation procedures, and ingredient
protocols; periodic audits and inspection of the plant and the raw materials; proper
documentation of activities, policies, sanitation condition, receiving records, and
employee logs; and evaluation of trainings, product quality, and sanitary tests.

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Picassio Operations Manual
Packaging
Picassio or Picadillong siomai should be packed chilled in large microwaveable
plastic containers. These containers are sturdy enough to protect the pieces from
distortion, and large enough to place at least two layers of Picassio inside. The sauce
should be delivered in two-liter bottles. It should later on be transferred in small soy sauce
dispensers by the kiosk employees.
Each serving should contain 3 Picassios with sauce. Costumers are offered chili
pepper for added spice.

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Picassio Operations Manual
Process
Since the firm should initially produce one product, mass production can be
achieved by following a line process with a line flow strategy. Measuring utensils should
also be used in order to maintain the exact amount of ingredients in each product. The
suppliers for each ingredient should be outsourced from weekend markets or in
supermarkets. Finished products should be stored and distributed to the outlets through
mini cold carrier vans to preserve the freshness of the product.
First is the preparation of ingredients. Garlic, onion, carrots and malunggay leaves
are washed along with shredded corn. Garlic, onion and carrots are peeled, rewashed
and chopped, malunggay leaves are prepared, and eggs are beaten. Next, the pan is
pre-heated. When warm enough, cooking oil should be greased on the pan. The
minced garlic, minced onion should be sautéed until brown. After that, beef is added
and cooked for 15 minutes. When the beef is cooked, shredded corn, chopped carrots
and malunggay leaves added. Cook for 2 minutes and then dash with salt, pepper and
seasoning to taste. When done, the pan is removed from the fire and cooled. The filling
is transferred to a large bowl where cornstarch should be added with beaten eggs and
then mixed well.
Once the filling is prepared, it should be wrapped in a molo wrapper. The filling
for each molo wrapper should be weighed for consistent quantity of content. The batch
of molo-wrapped Picadillong siomai should be steamed for 20-30 minutes. The product
should then be ready for packaging.
For the sauce, minced garlic and green pepper are sautéed. Soy sauce and
sugar are added to taste. It should also be remove from fire and cooled. Calamansi

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Picassio Operations Manual
juice should be added to enhance the taste of the sauce and then set aside for
packaging.
Quality checking is done all through-out the process by each kitchen workers and
by the head cook in order to make sure that the meat and other ingredients are cooked
well. For the packaging, a batch of Picadillong siomai are placed in large
microwavable plastic containers. They should be stored in the refrigerators of the
storage area for finished products until they are taken out for delivery.

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Picassio Operations Manual
Capacity
Based on the quantity of the ingredients given on Table 2, the firm could produce
20-22 servings of Picadillong siomai with 3 pieces each per batch. Assuming that the
production can make 36 siomai per batch, it was approximated that the production
capacity of the firm is 720 siomai per operation day. This 720 siomai should first be divided
and distributed equally to the four outlets. This yields a total of 5 batches of Picadillong
siomai with 180 siomai per outlet in Los Baños and Calamba City. These siomai should
be held in the storage area for finished goods until its delivery time in the morning.

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Picassio Operations Manual
Financial Viability
Table 2. Cost estimate for producing 20-22 servings with 3 Picadillong siomai
and sauce.
*Total cost may still increase if other variable costs other than the ingredients are
accounted.
The selling price of the product should be Php 30 pesos per serving. This pricing
incurs a 50% contribution margin rate. Note however that the variable cost accounted
were only those of the ingredients. Therefore, actual amounts could still vary.
Quantity Inputs Price
75 mL Cooking oil Php 10.00
20 grams garlic(minced) 5.00
25 grams onion(minced) 5.00
500 grams ground beef 145.00
123 grams corn(shredded) 17.00
150 grams carrots 12.00
7 stalks malunggay 8.00
2
Pcs. med.
sized
Eggs(beaten) 15.00
25 grams cornstarch 5.00
230 grams molo wrappers (small) 29.00
15 grams Iodized salt 1.00
1 gram ground pepper 5.00
1 gram seasoning 3.00
25 grams Green pepper (minced) 15.00
30 grams Sugar 3.00
120 mL Soy sauce 3.00
7 mL Calamansi juice 10.00
Total variable cost Php 291. 00

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Picassio Operations Manual
Assuming that all 240 servings of Picadillong siomai should be sold daily, maximum
sales of Php 7,200 per day should be earned. Deducting the variable cost per day of
Php 3,174.55, the daily maximum contribution margin should be Php 4,025.46.
During medium sales when 180 servings are sold per day, maximum sales is Php
5,400, variable cost is Php 2,380.91 the contribution margin should be Php 3,019.09.
During low sales when only 120 servings are sold per day, maximum sales is Php
3,600, variable cost is Php 1,587.27, and the contribution margin should be Php 2,012.73
per day.

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Picassio Operations Manual
Perspective
Shall Picassio grow and prosper as a well-known siomai brand, the company plans
to expand its infrastructure and its products line. The expansion of its facilities should
cater a greater capacity and more varieties of dim sum products.
Upon maturity of the business, Picassio shall tie up with larger long-term suppliers
of materials and ingredients. New ingredients should be needed for the introduction of
new recipes. Picassio should start opening itself for franchising and the brand should be
offered to supermarkets and malls within Laguna.