Product Distribution Flow

The figure shows the flow of product coming from the plant. The truck is
sufficient to deliver the products to customers even in far place. However, it has
difficulty in transporting the products during rainy seasons. They cater to
wholesalers, retailers and end-users. The market covers the whole Province of
La Union especially resorts, hotels, canteens, refreshment parlors, ice cream
makers and establishments situated in San Juan, San Fernando and Bauang.

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OPERATING AND CONTROLLING THE SYSTEM

Production system is to convert a set of input into some desired output. For
this industry, the components under transformation are plant facilities,
machines used and the production process involved. Input is in the form of raw
materials (water, electricity, salt, ammonia and oil), manpower, and money as
capital.
The industry in general possesses personnel in their operation. The ice
plant consists of 8 employees to serve as production operators, dispatchers,
maintenance operator and drivers. The rest of the managerial and supervisory
level composes of the owners or family members. One of the family member is
an electrical engineer. He serves as operations manager and is in charge of all
technical jobs, improvements and maintenance in the process.
The following are necessary to establish the availability of some basic technical
requirements:

An adequate supply of clean water. If water of adequate quality is not

immediately available, then the costs of filtration and treatment will need
to be taken into account when assessing the economic feasibility of the
operation. The business source of water is from La Union Water District.

A reliable source of power for the refrigeration equipment. In many

situations this will be electrical power. Direct-drive diesel units have been
produced, but these tend to be more expensive than purchasing power
directly from a supplier. Despite this, it may still be advisable where the
local electricity supply is unreliable, to install a stand-by or emergency
diesel electric generator set. As for the business, La Union Electric
Cooperative would serve this purpose.

Competent trained personnel will be needed to maintain and repair the

plant, along with a reliable source of spare parts for the equipment installed.
Even the best equipment available will break down eventually. Where spares
are not readily available, there is always a risk of considerable down time whilst
waiting for simple spare parts. In many countries spare parts have to be

imported, signifying a requirement for foreign exchange, which may or may not
be easily found. These are all matters to be considered when investment in icemaking machinery is being considered.
Because of the relatively high investment costs of ice plants, it is not unusual
for these to be borne by more than one person. Either way, the economics of
the investment must be sound so that potential investors are not exposed to
unnecessary financial loss due to poor planning; otherwise it can be extremely
difficult to finance plant costs without willing investors.
The refrigeration system for an icemaker should be independent of any other
refrigeration requirement; it should not be shared for example with a freezer or
a cold store. The only exception to this rule is when a complex system is
installed and a competent engineer is in fulltime attendance. Manufacturers
often recommend a separate system for each icemaking unit, so that in a
multiple unit installation there is considerable flexibility, and a reasonable
guarantee that at least some of the units are always in production. Choice of
refrigeration machinery and of refrigerant is a job for the refrigeration expert,
and the advice of the ice plant manufacturer or competent consultant should
be sought before making any decision.

QUALITY CONTROL MANAGEMENT

Manufacture of ice can seldom be matched to meet immediate demand;
therefore storage is necessary to cater for peak demand and to allow the
icemaker to be operated continuously. Storage also acts as a buffer against
interruption of production due to breakdown or routine maintenance.
The size of store required will depend on the pattern of operation, but it is
never advisable to store less than 2 days' production, and in most installations
it is useful to be able to store 4-5 times the daily production.
Stowage rates vary with the kind of ice being made, and the table gives the
storage space required for the principal types.
Table 3 Storage space for ice

type of ice

space m/tonne

flake

22-23

plate

17-18

tube

16-20

crushed block

14-15

Sample of Small ice store for 5-15 tonnes.

Bins can be used to store any kind of fragmented ice, and may be of any size
from a simple box to hold 1/2 tonne to an installation holding 1000 t or more.
Refrigeration of the bin is not always essential but, whatever the size, adequate
insulation is necessary to reduce meltage; 100-150 mm of cork, or an
equivalent thickness in many other suitable insulating materials, should be
used.
A simple bin system is suitable for factories making ice for their own use. The
icemaker can be mounted above the bin, so that ice flows by gravity to a take
off point at the bottom of the bin; thus the oldest ice is used first. Where ice
has to be distributed to customers, bins with a capacity of up to 50 tonnes can
be made with a sloping floor and so mounted that rapid discharge direct to
lorry or conveyor is possible. Some means of access to the bin is advisable in
order to be able to dislodge any compacted ice.
To ensure the quality of ice, inputs or raw materials are inspected by the
production operators. The goal is to produce quality crystal ice. Waste disposal
is not a problem since water is the only waste material.

INVENTORY CONTROL MANAGEMENT

Inventory control is the task of ensuring that the level of stocks of material
remain at optimum level that meet the requirements of the users of the
material without increasing the cost of procurement and of holding inventories
too much. Thus the basic objectives of inventory control for the ice plant
include:

Ensuring adequate stocks of material to meet the requirements of users

of material.

Keeping down the stock levels to reasonable levels so that cost of

carrying inventory is not too high since it is perishable good

Deciding on time and quantities for replenishment of stock that optimizes

the frequency of replenishment.
In addition the inventory control function in the company are as follows:
keeping stock records, and providing information to users, production

planners, and purchasers on existing stocks to enable them to plan and follow
up for replenishment.
The business uses batch control kind of inventory whereas; managing the
production of goods in batches. They need to make sure that they have the
right number of components to cover the needs until the next batch.
As businesses expand and grow, some "spillage" of inventory is going to be
inevitable. Products might be damaged in production or distribution phases,
or it might be more productive to engage in a free distribution of inventory as a
"trial phase" with the hope to generate a larger consumer base in the future.
Some loss is going to happen, but as long as there is a very cogent idea of how
the inventory is to be managed, this can be sustained.