BIBLIOGRAPHY PELINGAN, MARVIN T....
BIBLIOGRAPHY
PELINGAN, MARVIN T. APRIL 2013.Quality Management in Processing
Ube Wine; Cost and Benefit Analysis. Benguet State University, La Trinidad, Benguet.
Adviser: Leopoldo N. Tagarino MRSM Agribusiness
ABSTRACT
The study was conducted primarily to determine the Cost and Benefit of
Ube Wine Processing per batch and per year with regards to per bottle and per case they
produced; to identify the cost incurred and benefits derived by adopting quality
management; and to know the problems faced/encountered by the cooperative.
According to the manager that only served as the respondent of the study. The most
commonly processed wine per batch was 100 bottles (750 ml) 10 batches per. The selling
price per bottle was pegged atPhp 120 and a discount of 4.17 per case. Labor cost was
estimated from the allowance of Php 120 per day and the salary of officers was usually on
voluntary basis. With regards to other expenses, the cooperative pay their space rentals at
Php 18,000 yearly.
The cooperative was about spending Php 704 0f raw materials per bottle and Php
1,500 for the allowance of workers to process in one batch. Given the total cost in
production and marketing the cooperative incur losses of (Php 1.24) per bottle and (Php
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
68.12) per case respectively. The losses could attribute to high cost of raw materials
particularly ube and the indirect or other costs per unit of product.
The cooperative faced problems on acquiring its own lot and construction its own
building. With regards to the problem in processing the cooperative encountered the
problem on high acidity which caused the ube wine turned into vinegar. Aside from this
other mentioned problem was the non-functional equipment due to some damages that
needed repair or replacement.
With regards to the benefits derived by the cooperative it is recommended that the
cooperative should find ways to reduce cost of wine processing and optimized the used of
by-products from raw material residues.
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
INTRODUCTION
Rationale
The word wine comes from the Latin word "vinum", akin to Greek oinos, which
means grapes, in larger sense; it is the fermented juice of other fruits.
Wines are also made from root crops like yam, locally known as Ube (Discorea
alata) thrives in Benguet especially in the Municipality of Sablan. Sablan is one of the
smallest towns in Benguet. The municipality of Sablan is located at the Midwestern side
of the Province of Benguet. It is bounded on the north by Kapangan and Burgos, La Union,
on the south by tuba and the city of Baguio (Caliging, 2005).
Sablan is also becoming the root crop center in the Province of Benguet (Tandoc,
1994). Ube is one of the many crops that are commonly grown in the barangay of Sablan.
Sablan is one main producers of ube in Benguet (Kawili, 2007).
Sablan is basically an agricultural town. Due to its humid and temperate climate
during wet and dry seasons, it is ideal to some farming system. It is suitable for all kinds
of crops like santol, mango, citrus, coconut and some other fruits (Caliging, 2005).
Ube is usually boiled and served as snack or as substitute for rice, other mash and
mix it with sugar or milk. With the development of processing technology, ube is now
counted as a priority crop with potential value (Sonay, 2004).
Ube processing is one way of prolonging/lengthening the availability of this
seasonal crop for the whole year. Processed ube is kept and consumed even if it's not in
season.
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
REVIEW OF LITERATURE
The History and Importance of Quality
In a broad sense, quality assurance refers to any planned and systematic activity
directed toward providing consumers with products (goods and services) of appropriate
quality, along with the confidence that products meet consumer's requirements. Quality
assurance depends on excellence of two important focal points in business: the design of
goods and services and the control of quality during execution of manufacturing and
service delivery, which is often aided by some form of measurement and inspection activity
(Evans and Lindsay, 2011).
Quality assurance has been an important aspect of production operations
throughout history. For instance, Egyptian wall paintings circa 1450 B.C. show evidence
of measurement and inspections. Stones for the pyramids were cut so precisely that even
today it is impossible to put a knife blade between the blocks. The Egyptians success was
due tom good design, the consistent use of well-developed building methods and
procedures, and precise measuring devices (Evans and Lindsay, 2011).
The birth of modern quality assurance methods actually began the twelfth century
B.C. in china during the Zhou Dynasty. Specific governmental departments were created
and given responsibility for production, inventory, and product distribution of raw material
(what we now call supply chain management), production and manufacturing, formulating
and executing quality standard, and supervision and inspection. These departments were
well organized and helped establish China's central control over production process. The
system even included an independent quality organization responsible for end-to-end
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
oversight that reported directly to the highest level of government (Evans and Lindsay,
2011).
Defining Quality
Quality can be a confusing concept, partly because people view quality subjectively
and in relation to differing criteria based on their individual roles in the production-
marketing value chain. In addition, the meaning of quality continues to evolve as the
quality profession grows and natures. Neither consultants nor business professionals agree
on a universal definition (Evans and Lindsay, 2011).
Understanding Quality
Quality is defined as meeting or exceeding the needs and expectation of the
customer. Thus, the goal of the business should be to find out what the customer wants and
then fine tune the process to ensure that they get it. The primary dimensions of product
quality include; a. performance, b. features, c. reliability, d. conformance, e. durability, f.
serviceability, g. aesthetics, h. perceived quality (Allen, 2006).
However, Allen (2006) stated that service quality is attracting equal or more
attention. These are; a. responsiveness, b. reliability, c. accuracy, d. knowledge of
employees, e. courtesy, f. consistency, and g. speed. These listed dimensions of product
and service quality are, in a broad sense, generic to most situations. However, every
business is unique, and if customer satisfaction measurements are to be meaningful,
expectations should phrase in the language of customers for each distinct market segment.
Also, are more critical than others and it is wise to determine the relative importance of
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
each need. After measuring the satisfaction levels, emphasis can then be placed on
improving performance in areas important to the customer but where the organization may
be lacking in comparison to the quality delivered by competitors.
Continuous Quality Improvement
Continuous quality improvement begins by identifying customer expectations for
all key “moments of truth” the critical interactions customer have with the organization.
This can include contact with, for example, internal support groups, collection individuals,
sales representatives, management, or direct service provides. The best way to understand
customer expectations is to listen to customers using qualitative research techniques. This
usually requires skilful probing by someone practiced in customer satisfaction
measurements (Allen, 2006).
After identifying expectations, customer satisfaction can readily be measured.
However, this requires the customer to answer specific questions about he or she feels
about the company performance. This is why it is so important to capture their interest and
build the credibility needed to gain their cooperation. The task is made considerably easier
by speaking the customer’s language and presenting only issues that are truly significant
(Allen, 2006).
Measuring Quality
More and more, quality is being measured. Companies are coming to the conclusion
that if they can measure it, they can manage it, and consequently, can improve it. The best
performing organizations are allowing customer expectations to drive their quality
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
initiative. They recognize customers define quality by judging them in relation to
competitors (Allen, 2006).Organizations that constantly measure themselves in relation to
competitors (Bench-making) are able to quickly capitalize on their emerging strengths and
address weakness before they become problems (Allen, 2006).
Measuring the Return on Quality
Total quality efforts should lead to the achievement of outstanding business results.
However, successful quality initiative does not guarantee financial success. Many
organizations fail to pay enough attention to the financial returns on quality-related
investments. Financial returns not only demonstrate when the efforts are going in the right
direction, but can help identify changes and improvements that need to be made before
staying on the wrong path too long (Allen, 2006).
Management Quality
Management Quality is an organizational concept, which describes the
organizations capacity to meet high objectives in its management functions (Allen, 2006).
This leads to better customer satisfaction and financial and other performance. By defining
management quality, as an organizational concept and applying established quality
methodology to the area of management, a great potential for improvement becomes
apparent. This improvement translates directly to the business results or other major
objectives.
In practice, however, improvements in this area are often given a lower priority,
than within processes, more directly concerning flows of products and money. To apply
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
quality concepts and methods to the area of management includes measuring present level
of quality, establishing the desired goal and necessary actions, and finally measuring
progress. It is not sufficient to address the symptoms, the obvious deficiencies; you must
also consider the fundamental values, policies, system, process and programs, I.e. quality
assurance (Allen, 2006).
Concept of Quality Management
Quality management techniques and philosophies are generally referred to as total
quality management (Allen, 2006). The core concepts are; continuous process
improvement, customer focus, defect prevention, and universal improvement.
Cost of Quality
The reason quality has gained such prominence is that organizations have gained
an understanding of the high cost of poor quality. Quality affects all aspects of the
organization and has dramatic cost implications. The most obvious consequence occurs
when poor quality creates dissatisfied customers and eventually leads to loss of business.
However, quality has many other costs, which can be divided into two categories. The first
category consists of costs necessary for achieving high quality, which are called quality
control costs (Allen, 2006).
Prevention Cost
Prevention costs are all costs incurred in the process of preventing poor quality
from occurring. They include quality planning costs, such as the costs of developing and
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
implementing a quality plan. Also included are the costs of product and process design,
from collecting customer information to designing processes that achieve conformance to
specifications. Employee training in quality measurement is included as part of this cost,
as well as the costs of maintaining records of information and data related to quality (Allen,
2006).
Appraisal Cost
Appraisal costs are incurred in the process of uncovering defects. They include the
cost of quality inspections, product testing, and performing audits to make sure that quality
standards are being met. Also included in this category are the costs of worker time spent
measuring quality and the cost of equipment used for quality appraisal (Allen, 2006).
Internal Failure Cost
Internal failure costs are associated with discovering poor product quality before
the product reaches the customer site. One type of internal failure cost is rework, which is
the cost of correcting the defective item. Sometimes the item is so defective that it cannot
be corrected and must be thrown away. This is called scrap, and its costs include all the
material, labor, and machine cost spent in producing the defective product. Other types of
internal failure costs include the cost of machine downtime due to failures in the process
and the costs of discounting defective items for salvage value (Allen, 2006).
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
External Failure Cost
External failure costs are associated with quality problems that occur at the
customer site. These costs can be particularly damaging because customer faith and loyalty
can be difficult to regain. They include everything from customer complaints, product
returns, and repairs, to warranty claims, recalls, and even litigation costs resulting from
product liability issues. A final component of this cost is lost sales and lost customers. For
example, manufacturers of lunch meats and hot dogs whose products have been recalled
due to bacterial contamination have had to struggle to regain consumer confidence. Other
examples include auto manufacturers whose products have been recalled due to major
malfunctions such as problematic braking systems and airlines that have experienced a
crash with many fatalities. External failure can sometimes put a company out of business
almost overnight. Companies that consider quality important invest heavily in prevention
and appraisal costs in order to prevent internal and external failure costs. The earlier defects
are found, the less costly they are to correct. For example, detecting and correcting defects
during product design and product production is considerably less expensive than when the
defects are found at the customer site (Lindsay and Evan, 2011).
Reduce Costs
By using Total Quality Management (TQM) methods and tools, as well as other
similar concepts, you can reduce water wasted material, effort, and time in making, selling,
and delivering your product. The result is an improvement in the company's bottom line
and an increased competitive advantage. Since TQM became popular in the early 1990's,
there have been a number of similar initiatives such as re-engineering, six sigma, and such.
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
Some have been successful and some disastrous. Common sense and good business
practice is the most important thing and applying these concepts (Allen, 2006).
Quality Benefits in Organization
Companies that invest in Quality management efforts experience outstanding
returns and improvements in performance. Various studies show that quality focused
companies achieved better employee participation and relations, improved product and
service quality, higher productivity, greater customer satisfaction, increase market share,
and improve profitability (Lindsay and Evan, 2011) .
Singhal and Hendricks published one of the most celebrated studies in 1997. Based
on the objective data and rigorous statistical analysis, the study showed that when
implemented effectively, total quality management approaches improve financial
performance dramatically (Lindsay and Evan, 2011).
Quality Management Awards
The philosophies of Deming, Juran, Crosby and others provide much guidance and
wisdom in the form of best practices to managers around the world's leading to the
development of numerous awards and certification for recognizing effective application of
TQ principles. Although awards justifiably recognize only a select few, the rewards of
certification criteria provide frameworks for managing from which every organization can
be benefited (Lindsay and Evan, 2011).
The Plan-Do-Act Cycle
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
The Plan–Do–Study–Act Cycle The plan – do – study – act (PDSA) cycle describes
the activities a company needs to perform in order to incorporate continuous improvement
in its operation.
Plan. The first step in the PDSA cycle is to plan. Managers must evaluate the current
process and make plans based on any problems they find. They need to document all current
procedures, collect data, and identify problems. This information should then be studied
and used to develop a plan for improvement as well as specific measures to evaluate
performance.
Do. The next step in the cycle is implementing the plan (do). During the
implementation process managers should document all changes made and collect data for
evaluation.
Study. The third step is to study the data collected in the previous phase. The data
are evaluated to see whether the plan is achieving the goals established in the plan phase.
Act. The last phase of the cycle is to act on the basis of the results of the first three
phases. The best way to accomplish this is to communicate the results to other members in
the company and then implement the new procedure if it has been successful. Note that
this is a cycle; the next step is to plan again. After we have acted, we need to continue
evaluating the process, planning, and repeating the cycle again.
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
METHODOLOGY
Locale and Time of the Study
The study was conducted in the municipality of Sablan, specifically in Barangay
Bayabas province of Benguet. This area is where the processing enterprise is located. The
study will be conducted on December 2012 to January 2013.
Respondents of the Study
The respondents of the study were the ube wine workers of KMPC in Bayabas,
Sablan, Benguet. The manager of the enterprise was been taken as respondents of the study.
Data Gathering Procedure
The data gathering was done through administering of questionnaires to the
respondents and to be followed by a personal interview to validate their written answers on
the questionnaires.
Data to be Gathered
The data was collected are the cost and benefits in adopting Total Quality
Management and the problems encountered by the respondents with regards to quality will
be ask.
Data Analysis
The data gathered was tabulated and analyzed using frequency and other
appropriate tools to be used.
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
RESULT AND DISCUSSION
Background in Wine Processing: Kayabang MPC
Kayabang Multipurpose Cooperative (KMPC) or the Ube Wine Processing
Enterprise started when the local government of Sablan gave financial assistance to
cooperatives. The KMPC was conceptualized in 2003 through the leadership of Mr.
Eugenio Calis, a member of the barangay council. It started with thirty two (32) initial
members mostly farmers of barangay Bayabas. That same year, the cooperative was
registered under Reg. no. CEO 1208 with the Cooperative Administrative Office (COA).
It started with fund given by the local government and the one thousand pesos (php 1,000)
initial share capital contribution from its member.
To help the shareholders, the cooperative started sell farm inputs like fertilizer and
pesticide. The members were allowed to pay their credits after harvest. But this didn’t
prosper for long due to unpaid debts which cause the cooperative to stops its operation in
the meantime.
In 2005, the cooperative entered into food processing industry. They have thought
of processing ube. The cooperative tapped the support/assistance of the Department of
Agrarian Reform (DAR) and the Department of Trade and Industry (DTI) from them to
adopt the ube wine processing technology. Some members of the cooperative have
undergone workshop, seminar, and hands-on training on ube wine processing. The same
year the cooperative started processing ube wine. Temporarily, production site was at the
residence of appointed secretary.
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
The following year the cooperative joined the nationwide competition on Best Ube
Food Products during the 12th anniversary of the CAR- Philippine Fruits and Vegetable,
Inc. in Manila. In the search for the Best Product, the cooperative won the title “Best
Rookie Food Product of the Year” for their ube wine. This was featured in media and later
joined the Adivay Trade Fair to further promote their product.
Management Process in Ube Wine Making
Inspection and sorting. The organization inspects and sort their raw materials most
especially the main raw material which is ube/yam. They mix some varieties of ube to
create a strong aroma.
Washing and cleaning. The worker washes first the ube for process with it
chlorinated clean laboratory tested tap water. They do not peeled ube before were boil to
maintain its nutrients.
Juice extraction/liquefying. To extract the juice, the ube will be boiled until such
time that it’s already cooked. After boiling, they remove the ube so that the juice left in the
pot will taken.
Filtration. After the juice is extracted, they filter immediately with the use of fine
cheese cloth.
Mixing. After filtration, ingredients will be mixed to the extracted juice
Pasteurization. After the mixing process, the workers pasteurize the juice. In
pasteurizing they maintain a specific temperature which is 70 degrees Celsius and when
the temperature is reach, they stop. After pasteurization, they cool the juice at a room
temperature.
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
Fermentation. After they cool the pasteurized juice, next is fermentation. They
ferment it within 15-30 days in a plastic drum and jars. With regards to the alcohol content
they maintain a 12% alcohol level. They measure the alcohol content by using alcometer.
They do not measure the pH level after fermentation and also, they do not filter the
fermented wine because they do filtering after aging with the use of wine filter press.
Aging. In aging, they use plastic jars and stainless steel tanks. Wine will be age for
6 months. The container will be filled up until brim and sealed with the used of packing
tape, tightly wrapped over the cap prevent aeration and evaporation. The filled container
will be place in aging room at normal temperature. The containers will be marked with the
date, time of production, batch number and the workers involved. This practice is to trace
any problem and easy identification of workers involved.
Filtration. After aging the wine is filtered with the used wine filter press to remove
the sediments.
Bottle sterilization. The bottles will be sterilized for 20 minutes. Afterwards, drain
and cool the bottles before bottling the wine.
Filling/bottling. Workers use 750 ml clean glass bottle for bottling and also plans
to upgrade bottles to color green provided by the DTI. To fill the bottles, they siphon the
wine from the container with the use of small transparent hose. In filling the bottles, they
do not fill it until bottle brim at approximately half inch from the wine until the bottle cover.
Sealing. The wine filled bottles were sealed with the use semi-hard plastic
cellophane and heat gun to fit the seal to the neck of bottle and the cap.
Labeling. Before the bottles will be labeled, bottles will be inspected to check the
cleanliness and cracks. On the wine labels, information includes the ingredients, brand
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
name, trade mark and other information to add value to the product. In the wine label
design, the attractiveness and appropriateness of information were considered.
Investments in Fixed Asset for Wine Processing
Table 1 presents the total cost of investment in fixed asset according to the stages
in wine processing. The cooperative have invested a total amount of Php 217,727.50 with
an estimated depreciation cost of Php 14,728.13 from among the various equipment, the
filter press was the most expensive (Php. 170,000) followed by water tank (Php 14,000)
and the aging jars (Php 13,000). The rest of the equipments were mostly kitchen based that
had lower cost per unit.
Moreover, the estimated number of years to last indicates that some equipment will
still last for 10 years and the least is 5 years. These have some implication for the costing
of the product, whereby the shorter economic life of property would mean higher
depreciation value, thus would results to a higher indirect cost for the product.
The equipment was used in a year for ten batches which implied that the facilities
were not fully maximize its uses.
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to determine the costs and benefits in ube wine
processing. It aimed to; identify the cost incurred by the ube wine producers, identify the
benefits derived by the ube wine producers in adopting quality management and to identify
problems encountered by the cooperative. Only the manager of ube wine processing
enterprise from Bayabas, Sablan served as the respondent. The manager was personally
interviewed and followed-up by answering the written questionnaire.
The cooperative started in ube wine processing with an initial capital of Php
100,000 granted by the local government and came from initial share capital contribution
from its member.
The cooperative have invested a total amount of Php 217,727.50 in their fixed asset.
The number of years to last indicates that some equipment’s will still last for ten years and
the least is 5 years. The equipment was used according to the stages of production in a year
for ten batches.
The processing of ube wine requires workers to perform various activities in every
stages. Usually it needs only three (3) to five (5) individual to work for three hours. Labor
cost is computed from the allowance granted and allocated per hour basis. The workers
perform various activities depending on the stages on wine processing. The cooperative
personally assist the workers in various stages. The administrative function that includes
bookkeeping, storekeeping and others were performed on voluntary basis.
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
The cost of raw materials was about Php 7,172 per batch. In every batch the
cooperative processed 80 kilograms of ube with a unit cost of Php 25 per kilogram which
means that costs of materials is high which affect the profit substantially. The cooperative
produced 100 bottles (750 ml.) per one batch. The selling price was about Php 120 per
bottle and by bulk bulk/case buying has a 4.17 discount.
The cost of production incurred by Kayabang Multipurpose Cooperative in
production and marketing was in per bottle; per case basis. The total cost per bottle was
about Php 121.24 and on per case basis is Php 1,103.12. The additional cost in production
on per case basis is attributed to additional cost of cartoons used for the case of wine.
The benefits derived by the cooperative is based on their returns of wines in per
bottle and per case basis with selling price of Php 120 and 4.17 percent discount for
bulk/case buying of wine. Given the total cost in production and marketing the cooperative
incur losses of (Php 1.24) per bottle and (Php 68.12) per case respectively. The losses could
attribute to high cost of raw materials particularly ube and the indirect or other costs per
unit of product.
The cooperative were paying their space rentals at Php 1,800 per batch while the
other utilities like water and electricity had lower cost. Wherein its one main problem of
the cooperative. As mentioned by the manager, the major problem of the cooperative was
to acquire or purchase its own lot and the construction of a coop building in order not to
rent to reduced cost on space rentals. With regards to the quality management the
cooperative encountered one main problem which is according to the manager. It is a
greatest problem it greatly affects the quality of the product and thus resulting to lower
profit and the negative image of the product/ the problem they encountered is the high
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
acidity level of wine which caused the ube wines turn into vinegar. Aside from this other
mentioned problem is some of equipment’s cannot function because of some damages.
Conclusions
Based on the result of the study, the following conclusions were drawn:
1. The cost incurred by the organization in the investments of fixed asset has a total
of Php 217,727.5, and usually end up with not the same life span. This equipment’s used
in ten batches yearly and function according to the stages of production;
2. The cooperative was about spending Php 704 0f raw materials per bottle and
Php 1,500 for the allowance of workers to process in one batch. KMPC process ube wine
of 100 bottles (750 ml.) per batch and the selling price is Php 120 per bottle and 4.17
percent discount in the form of bulk/case buying;
3. Given the total cost in production and marketing the cooperative incur losses of
(Php 1.24) per bottle and (Php 68.12) per case respectively. The losses could attribute to
high cost of raw materials particularly ube and the indirect or other costs per unit of
product; and,
4. The major problem of the cooperative was to acquire or purchase its own lot and
the construction of a coop building in order not to rent to reduced cost on space rentals.
With regards to the quality management the cooperative encountered one main problem
which is according to the manager. It is a greatest problem it greatly affects the quality of
the product and thus resulting to lower profit and the negative image of the product/ the
problem they encountered is the high acidity level of wine which caused the ube wines turn
into vinegar.
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
Recommendations
Based on the conclusion, the following recommendations were made:
1. The cooperative should maximize the use of equipment and facilities to increase volume
of production and to reduce the indirect cost involved.
2. Raw materials and other cost should be reduced through purchasing or procurement at
lower cost. That is, buying from other sources at cheaper prices.
3. KMPC should increase a little higher the price to create more return and used the waste
product to develop other products to increase income. Organization must also increase the
volume of production and look for another source of market for continuous to procure raw
materials and where to dispose the finished product; and,
4. With the aim to have uniform taste of the ube wine products, measuring equipment
should be calibrated and use during mixing process to have uniform mixture. Cleanliness
and sanitation to the production site/area should also monitor and maintained to avoid
contamination.
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
LITERATURE CITED
ALLEN, M. E. 2005. How to develop and Maintain Quality. 2nd Ed. Pp. 1-20.
AP-AP, M. C. 2008. A Documentation on Ube Wine Processing Enterprise, Sablan,
Benguet. B. S. Thesis. Benguet State University, La Trinidad, Benguet. Pp1-15.
CALIGING, E. S. 2005. History of Sablan. Municipal Planning and Development
Office.Pp 1-2.
_______________. 2005. Sablan Socio-Economic Profile: Municipal Planning and
Development Office.
EVANS, J. R. and LINDSAY, W. M. 2011. Understanding Total Quality Management. 2nd
Ed. Pp. 17-43.
SONAY, C. Q. 2004.Yam Processing Technologies Used at the NPRCRTC, Benguet State
University. B. S. Thesis. Benguet State University, La Trinidad, Benguet. Pp 4-8.
TANDOC, A. M. 1994. An Assessment of the Cultural Management Practices of Ube
Wine Production in Sablan, Benguet. BS Thesis. Benguet State University, La
Trinidad, Benguet. Pp 1-2; 5.
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
PELINGAN, MARVIN T. APRIL 2013.Quality Management in Processing
Ube Wine; Cost and Benefit Analysis. Benguet State University, La Trinidad, Benguet.
Adviser: Leopoldo N. Tagarino MRSM Agribusiness
ABSTRACT
The study was conducted primarily to determine the Cost and Benefit of
Ube Wine Processing per batch and per year with regards to per bottle and per case they
produced; to identify the cost incurred and benefits derived by adopting quality
management; and to know the problems faced/encountered by the cooperative.
According to the manager that only served as the respondent of the study. The most
commonly processed wine per batch was 100 bottles (750 ml) 10 batches per. The selling
price per bottle was pegged atPhp 120 and a discount of 4.17 per case. Labor cost was
estimated from the allowance of Php 120 per day and the salary of officers was usually on
voluntary basis. With regards to other expenses, the cooperative pay their space rentals at
Php 18,000 yearly.
The cooperative was about spending Php 704 0f raw materials per bottle and Php
1,500 for the allowance of workers to process in one batch. Given the total cost in
production and marketing the cooperative incur losses of (Php 1.24) per bottle and (Php
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
PELINGAN, MARVIN T. APRIL 2013
68.12) per case respectively. The losses could attribute to high cost of raw materials
particularly ube and the indirect or other costs per unit of product.
The cooperative faced problems on acquiring its own lot and construction its own
building. With regards to the problem in processing the cooperative encountered the
problem on high acidity which caused the ube wine turned into vinegar. Aside from this
other mentioned problem was the non-functional equipment due to some damages that
needed repair or replacement.
With regards to the benefits derived by the cooperative it is recommended that the
cooperative should find ways to reduce cost of wine processing and optimized the used of
by-products from raw material residues.
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INTRODUCTION
Rationale
The word wine comes from the Latin word "vinum", akin to Greek oinos, which
means grapes, in larger sense; it is the fermented juice of other fruits.
Wines are also made from root crops like yam, locally known as Ube (Discorea
alata) thrives in Benguet especially in the Municipality of Sablan. Sablan is one of the
smallest towns in Benguet. The municipality of Sablan is located at the Midwestern side
of the Province of Benguet. It is bounded on the north by Kapangan and Burgos, La Union,
on the south by tuba and the city of Baguio (Caliging, 2005).
Sablan is also becoming the root crop center in the Province of Benguet (Tandoc,
1994). Ube is one of the many crops that are commonly grown in the barangay of Sablan.
Sablan is one main producers of ube in Benguet (Kawili, 2007).
Sablan is basically an agricultural town. Due to its humid and temperate climate
during wet and dry seasons, it is ideal to some farming system. It is suitable for all kinds
of crops like santol, mango, citrus, coconut and some other fruits (Caliging, 2005).
Ube is usually boiled and served as snack or as substitute for rice, other mash and
mix it with sugar or milk. With the development of processing technology, ube is now
counted as a priority crop with potential value (Sonay, 2004).
Ube processing is one way of prolonging/lengthening the availability of this
seasonal crop for the whole year. Processed ube is kept and consumed even if it's not in
season.
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REVIEW OF LITERATURE
The History and Importance of Quality
In a broad sense, quality assurance refers to any planned and systematic activity
directed toward providing consumers with products (goods and services) of appropriate
quality, along with the confidence that products meet consumer's requirements. Quality
assurance depends on excellence of two important focal points in business: the design of
goods and services and the control of quality during execution of manufacturing and
service delivery, which is often aided by some form of measurement and inspection activity
(Evans and Lindsay, 2011).
Quality assurance has been an important aspect of production operations
throughout history. For instance, Egyptian wall paintings circa 1450 B.C. show evidence
of measurement and inspections. Stones for the pyramids were cut so precisely that even
today it is impossible to put a knife blade between the blocks. The Egyptians success was
due tom good design, the consistent use of well-developed building methods and
procedures, and precise measuring devices (Evans and Lindsay, 2011).
The birth of modern quality assurance methods actually began the twelfth century
B.C. in china during the Zhou Dynasty. Specific governmental departments were created
and given responsibility for production, inventory, and product distribution of raw material
(what we now call supply chain management), production and manufacturing, formulating
and executing quality standard, and supervision and inspection. These departments were
well organized and helped establish China's central control over production process. The
system even included an independent quality organization responsible for end-to-end
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oversight that reported directly to the highest level of government (Evans and Lindsay,
2011).
Defining Quality
Quality can be a confusing concept, partly because people view quality subjectively
and in relation to differing criteria based on their individual roles in the production-
marketing value chain. In addition, the meaning of quality continues to evolve as the
quality profession grows and natures. Neither consultants nor business professionals agree
on a universal definition (Evans and Lindsay, 2011).
Understanding Quality
Quality is defined as meeting or exceeding the needs and expectation of the
customer. Thus, the goal of the business should be to find out what the customer wants and
then fine tune the process to ensure that they get it. The primary dimensions of product
quality include; a. performance, b. features, c. reliability, d. conformance, e. durability, f.
serviceability, g. aesthetics, h. perceived quality (Allen, 2006).
However, Allen (2006) stated that service quality is attracting equal or more
attention. These are; a. responsiveness, b. reliability, c. accuracy, d. knowledge of
employees, e. courtesy, f. consistency, and g. speed. These listed dimensions of product
and service quality are, in a broad sense, generic to most situations. However, every
business is unique, and if customer satisfaction measurements are to be meaningful,
expectations should phrase in the language of customers for each distinct market segment.
Also, are more critical than others and it is wise to determine the relative importance of
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each need. After measuring the satisfaction levels, emphasis can then be placed on
improving performance in areas important to the customer but where the organization may
be lacking in comparison to the quality delivered by competitors.
Continuous Quality Improvement
Continuous quality improvement begins by identifying customer expectations for
all key “moments of truth” the critical interactions customer have with the organization.
This can include contact with, for example, internal support groups, collection individuals,
sales representatives, management, or direct service provides. The best way to understand
customer expectations is to listen to customers using qualitative research techniques. This
usually requires skilful probing by someone practiced in customer satisfaction
measurements (Allen, 2006).
After identifying expectations, customer satisfaction can readily be measured.
However, this requires the customer to answer specific questions about he or she feels
about the company performance. This is why it is so important to capture their interest and
build the credibility needed to gain their cooperation. The task is made considerably easier
by speaking the customer’s language and presenting only issues that are truly significant
(Allen, 2006).
Measuring Quality
More and more, quality is being measured. Companies are coming to the conclusion
that if they can measure it, they can manage it, and consequently, can improve it. The best
performing organizations are allowing customer expectations to drive their quality
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initiative. They recognize customers define quality by judging them in relation to
competitors (Allen, 2006).Organizations that constantly measure themselves in relation to
competitors (Bench-making) are able to quickly capitalize on their emerging strengths and
address weakness before they become problems (Allen, 2006).
Measuring the Return on Quality
Total quality efforts should lead to the achievement of outstanding business results.
However, successful quality initiative does not guarantee financial success. Many
organizations fail to pay enough attention to the financial returns on quality-related
investments. Financial returns not only demonstrate when the efforts are going in the right
direction, but can help identify changes and improvements that need to be made before
staying on the wrong path too long (Allen, 2006).
Management Quality
Management Quality is an organizational concept, which describes the
organizations capacity to meet high objectives in its management functions (Allen, 2006).
This leads to better customer satisfaction and financial and other performance. By defining
management quality, as an organizational concept and applying established quality
methodology to the area of management, a great potential for improvement becomes
apparent. This improvement translates directly to the business results or other major
objectives.
In practice, however, improvements in this area are often given a lower priority,
than within processes, more directly concerning flows of products and money. To apply
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quality concepts and methods to the area of management includes measuring present level
of quality, establishing the desired goal and necessary actions, and finally measuring
progress. It is not sufficient to address the symptoms, the obvious deficiencies; you must
also consider the fundamental values, policies, system, process and programs, I.e. quality
assurance (Allen, 2006).
Concept of Quality Management
Quality management techniques and philosophies are generally referred to as total
quality management (Allen, 2006). The core concepts are; continuous process
improvement, customer focus, defect prevention, and universal improvement.
Cost of Quality
The reason quality has gained such prominence is that organizations have gained
an understanding of the high cost of poor quality. Quality affects all aspects of the
organization and has dramatic cost implications. The most obvious consequence occurs
when poor quality creates dissatisfied customers and eventually leads to loss of business.
However, quality has many other costs, which can be divided into two categories. The first
category consists of costs necessary for achieving high quality, which are called quality
control costs (Allen, 2006).
Prevention Cost
Prevention costs are all costs incurred in the process of preventing poor quality
from occurring. They include quality planning costs, such as the costs of developing and
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implementing a quality plan. Also included are the costs of product and process design,
from collecting customer information to designing processes that achieve conformance to
specifications. Employee training in quality measurement is included as part of this cost,
as well as the costs of maintaining records of information and data related to quality (Allen,
2006).
Appraisal Cost
Appraisal costs are incurred in the process of uncovering defects. They include the
cost of quality inspections, product testing, and performing audits to make sure that quality
standards are being met. Also included in this category are the costs of worker time spent
measuring quality and the cost of equipment used for quality appraisal (Allen, 2006).
Internal Failure Cost
Internal failure costs are associated with discovering poor product quality before
the product reaches the customer site. One type of internal failure cost is rework, which is
the cost of correcting the defective item. Sometimes the item is so defective that it cannot
be corrected and must be thrown away. This is called scrap, and its costs include all the
material, labor, and machine cost spent in producing the defective product. Other types of
internal failure costs include the cost of machine downtime due to failures in the process
and the costs of discounting defective items for salvage value (Allen, 2006).
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External Failure Cost
External failure costs are associated with quality problems that occur at the
customer site. These costs can be particularly damaging because customer faith and loyalty
can be difficult to regain. They include everything from customer complaints, product
returns, and repairs, to warranty claims, recalls, and even litigation costs resulting from
product liability issues. A final component of this cost is lost sales and lost customers. For
example, manufacturers of lunch meats and hot dogs whose products have been recalled
due to bacterial contamination have had to struggle to regain consumer confidence. Other
examples include auto manufacturers whose products have been recalled due to major
malfunctions such as problematic braking systems and airlines that have experienced a
crash with many fatalities. External failure can sometimes put a company out of business
almost overnight. Companies that consider quality important invest heavily in prevention
and appraisal costs in order to prevent internal and external failure costs. The earlier defects
are found, the less costly they are to correct. For example, detecting and correcting defects
during product design and product production is considerably less expensive than when the
defects are found at the customer site (Lindsay and Evan, 2011).
Reduce Costs
By using Total Quality Management (TQM) methods and tools, as well as other
similar concepts, you can reduce water wasted material, effort, and time in making, selling,
and delivering your product. The result is an improvement in the company's bottom line
and an increased competitive advantage. Since TQM became popular in the early 1990's,
there have been a number of similar initiatives such as re-engineering, six sigma, and such.
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Some have been successful and some disastrous. Common sense and good business
practice is the most important thing and applying these concepts (Allen, 2006).
Quality Benefits in Organization
Companies that invest in Quality management efforts experience outstanding
returns and improvements in performance. Various studies show that quality focused
companies achieved better employee participation and relations, improved product and
service quality, higher productivity, greater customer satisfaction, increase market share,
and improve profitability (Lindsay and Evan, 2011) .
Singhal and Hendricks published one of the most celebrated studies in 1997. Based
on the objective data and rigorous statistical analysis, the study showed that when
implemented effectively, total quality management approaches improve financial
performance dramatically (Lindsay and Evan, 2011).
Quality Management Awards
The philosophies of Deming, Juran, Crosby and others provide much guidance and
wisdom in the form of best practices to managers around the world's leading to the
development of numerous awards and certification for recognizing effective application of
TQ principles. Although awards justifiably recognize only a select few, the rewards of
certification criteria provide frameworks for managing from which every organization can
be benefited (Lindsay and Evan, 2011).
The Plan-Do-Act Cycle
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The Plan–Do–Study–Act Cycle The plan – do – study – act (PDSA) cycle describes
the activities a company needs to perform in order to incorporate continuous improvement
in its operation.
Plan. The first step in the PDSA cycle is to plan. Managers must evaluate the current
process and make plans based on any problems they find. They need to document all current
procedures, collect data, and identify problems. This information should then be studied
and used to develop a plan for improvement as well as specific measures to evaluate
performance.
Do. The next step in the cycle is implementing the plan (do). During the
implementation process managers should document all changes made and collect data for
evaluation.
Study. The third step is to study the data collected in the previous phase. The data
are evaluated to see whether the plan is achieving the goals established in the plan phase.
Act. The last phase of the cycle is to act on the basis of the results of the first three
phases. The best way to accomplish this is to communicate the results to other members in
the company and then implement the new procedure if it has been successful. Note that
this is a cycle; the next step is to plan again. After we have acted, we need to continue
evaluating the process, planning, and repeating the cycle again.
Quality Management in Processing Ube Wine; Cost and Benefit Analysis
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METHODOLOGY
Locale and Time of the Study
The study was conducted in the municipality of Sablan, specifically in Barangay
Bayabas province of Benguet. This area is where the processing enterprise is located. The
study will be conducted on December 2012 to January 2013.
Respondents of the Study
The respondents of the study were the ube wine workers of KMPC in Bayabas,
Sablan, Benguet. The manager of the enterprise was been taken as respondents of the study.
Data Gathering Procedure
The data gathering was done through administering of questionnaires to the
respondents and to be followed by a personal interview to validate their written answers on
the questionnaires.
Data to be Gathered
The data was collected are the cost and benefits in adopting Total Quality
Management and the problems encountered by the respondents with regards to quality will
be ask.
Data Analysis
The data gathered was tabulated and analyzed using frequency and other
appropriate tools to be used.
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RESULT AND DISCUSSION
Background in Wine Processing: Kayabang MPC
Kayabang Multipurpose Cooperative (KMPC) or the Ube Wine Processing
Enterprise started when the local government of Sablan gave financial assistance to
cooperatives. The KMPC was conceptualized in 2003 through the leadership of Mr.
Eugenio Calis, a member of the barangay council. It started with thirty two (32) initial
members mostly farmers of barangay Bayabas. That same year, the cooperative was
registered under Reg. no. CEO 1208 with the Cooperative Administrative Office (COA).
It started with fund given by the local government and the one thousand pesos (php 1,000)
initial share capital contribution from its member.
To help the shareholders, the cooperative started sell farm inputs like fertilizer and
pesticide. The members were allowed to pay their credits after harvest. But this didn’t
prosper for long due to unpaid debts which cause the cooperative to stops its operation in
the meantime.
In 2005, the cooperative entered into food processing industry. They have thought
of processing ube. The cooperative tapped the support/assistance of the Department of
Agrarian Reform (DAR) and the Department of Trade and Industry (DTI) from them to
adopt the ube wine processing technology. Some members of the cooperative have
undergone workshop, seminar, and hands-on training on ube wine processing. The same
year the cooperative started processing ube wine. Temporarily, production site was at the
residence of appointed secretary.
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The following year the cooperative joined the nationwide competition on Best Ube
Food Products during the 12th anniversary of the CAR- Philippine Fruits and Vegetable,
Inc. in Manila. In the search for the Best Product, the cooperative won the title “Best
Rookie Food Product of the Year” for their ube wine. This was featured in media and later
joined the Adivay Trade Fair to further promote their product.
Management Process in Ube Wine Making
Inspection and sorting. The organization inspects and sort their raw materials most
especially the main raw material which is ube/yam. They mix some varieties of ube to
create a strong aroma.
Washing and cleaning. The worker washes first the ube for process with it
chlorinated clean laboratory tested tap water. They do not peeled ube before were boil to
maintain its nutrients.
Juice extraction/liquefying. To extract the juice, the ube will be boiled until such
time that it’s already cooked. After boiling, they remove the ube so that the juice left in the
pot will taken.
Filtration. After the juice is extracted, they filter immediately with the use of fine
cheese cloth.
Mixing. After filtration, ingredients will be mixed to the extracted juice
Pasteurization. After the mixing process, the workers pasteurize the juice. In
pasteurizing they maintain a specific temperature which is 70 degrees Celsius and when
the temperature is reach, they stop. After pasteurization, they cool the juice at a room
temperature.
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Fermentation. After they cool the pasteurized juice, next is fermentation. They
ferment it within 15-30 days in a plastic drum and jars. With regards to the alcohol content
they maintain a 12% alcohol level. They measure the alcohol content by using alcometer.
They do not measure the pH level after fermentation and also, they do not filter the
fermented wine because they do filtering after aging with the use of wine filter press.
Aging. In aging, they use plastic jars and stainless steel tanks. Wine will be age for
6 months. The container will be filled up until brim and sealed with the used of packing
tape, tightly wrapped over the cap prevent aeration and evaporation. The filled container
will be place in aging room at normal temperature. The containers will be marked with the
date, time of production, batch number and the workers involved. This practice is to trace
any problem and easy identification of workers involved.
Filtration. After aging the wine is filtered with the used wine filter press to remove
the sediments.
Bottle sterilization. The bottles will be sterilized for 20 minutes. Afterwards, drain
and cool the bottles before bottling the wine.
Filling/bottling. Workers use 750 ml clean glass bottle for bottling and also plans
to upgrade bottles to color green provided by the DTI. To fill the bottles, they siphon the
wine from the container with the use of small transparent hose. In filling the bottles, they
do not fill it until bottle brim at approximately half inch from the wine until the bottle cover.
Sealing. The wine filled bottles were sealed with the use semi-hard plastic
cellophane and heat gun to fit the seal to the neck of bottle and the cap.
Labeling. Before the bottles will be labeled, bottles will be inspected to check the
cleanliness and cracks. On the wine labels, information includes the ingredients, brand
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name, trade mark and other information to add value to the product. In the wine label
design, the attractiveness and appropriateness of information were considered.
Investments in Fixed Asset for Wine Processing
Table 1 presents the total cost of investment in fixed asset according to the stages
in wine processing. The cooperative have invested a total amount of Php 217,727.50 with
an estimated depreciation cost of Php 14,728.13 from among the various equipment, the
filter press was the most expensive (Php. 170,000) followed by water tank (Php 14,000)
and the aging jars (Php 13,000). The rest of the equipments were mostly kitchen based that
had lower cost per unit.
Moreover, the estimated number of years to last indicates that some equipment will
still last for 10 years and the least is 5 years. These have some implication for the costing
of the product, whereby the shorter economic life of property would mean higher
depreciation value, thus would results to a higher indirect cost for the product.
The equipment was used in a year for ten batches which implied that the facilities
were not fully maximize its uses.
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SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to determine the costs and benefits in ube wine
processing. It aimed to; identify the cost incurred by the ube wine producers, identify the
benefits derived by the ube wine producers in adopting quality management and to identify
problems encountered by the cooperative. Only the manager of ube wine processing
enterprise from Bayabas, Sablan served as the respondent. The manager was personally
interviewed and followed-up by answering the written questionnaire.
The cooperative started in ube wine processing with an initial capital of Php
100,000 granted by the local government and came from initial share capital contribution
from its member.
The cooperative have invested a total amount of Php 217,727.50 in their fixed asset.
The number of years to last indicates that some equipment’s will still last for ten years and
the least is 5 years. The equipment was used according to the stages of production in a year
for ten batches.
The processing of ube wine requires workers to perform various activities in every
stages. Usually it needs only three (3) to five (5) individual to work for three hours. Labor
cost is computed from the allowance granted and allocated per hour basis. The workers
perform various activities depending on the stages on wine processing. The cooperative
personally assist the workers in various stages. The administrative function that includes
bookkeeping, storekeeping and others were performed on voluntary basis.
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The cost of raw materials was about Php 7,172 per batch. In every batch the
cooperative processed 80 kilograms of ube with a unit cost of Php 25 per kilogram which
means that costs of materials is high which affect the profit substantially. The cooperative
produced 100 bottles (750 ml.) per one batch. The selling price was about Php 120 per
bottle and by bulk bulk/case buying has a 4.17 discount.
The cost of production incurred by Kayabang Multipurpose Cooperative in
production and marketing was in per bottle; per case basis. The total cost per bottle was
about Php 121.24 and on per case basis is Php 1,103.12. The additional cost in production
on per case basis is attributed to additional cost of cartoons used for the case of wine.
The benefits derived by the cooperative is based on their returns of wines in per
bottle and per case basis with selling price of Php 120 and 4.17 percent discount for
bulk/case buying of wine. Given the total cost in production and marketing the cooperative
incur losses of (Php 1.24) per bottle and (Php 68.12) per case respectively. The losses could
attribute to high cost of raw materials particularly ube and the indirect or other costs per
unit of product.
The cooperative were paying their space rentals at Php 1,800 per batch while the
other utilities like water and electricity had lower cost. Wherein its one main problem of
the cooperative. As mentioned by the manager, the major problem of the cooperative was
to acquire or purchase its own lot and the construction of a coop building in order not to
rent to reduced cost on space rentals. With regards to the quality management the
cooperative encountered one main problem which is according to the manager. It is a
greatest problem it greatly affects the quality of the product and thus resulting to lower
profit and the negative image of the product/ the problem they encountered is the high
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acidity level of wine which caused the ube wines turn into vinegar. Aside from this other
mentioned problem is some of equipment’s cannot function because of some damages.
Conclusions
Based on the result of the study, the following conclusions were drawn:
1. The cost incurred by the organization in the investments of fixed asset has a total
of Php 217,727.5, and usually end up with not the same life span. This equipment’s used
in ten batches yearly and function according to the stages of production;
2. The cooperative was about spending Php 704 0f raw materials per bottle and
Php 1,500 for the allowance of workers to process in one batch. KMPC process ube wine
of 100 bottles (750 ml.) per batch and the selling price is Php 120 per bottle and 4.17
percent discount in the form of bulk/case buying;
3. Given the total cost in production and marketing the cooperative incur losses of
(Php 1.24) per bottle and (Php 68.12) per case respectively. The losses could attribute to
high cost of raw materials particularly ube and the indirect or other costs per unit of
product; and,
4. The major problem of the cooperative was to acquire or purchase its own lot and
the construction of a coop building in order not to rent to reduced cost on space rentals.
With regards to the quality management the cooperative encountered one main problem
which is according to the manager. It is a greatest problem it greatly affects the quality of
the product and thus resulting to lower profit and the negative image of the product/ the
problem they encountered is the high acidity level of wine which caused the ube wines turn
into vinegar.
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Recommendations
Based on the conclusion, the following recommendations were made:
1. The cooperative should maximize the use of equipment and facilities to increase volume
of production and to reduce the indirect cost involved.
2. Raw materials and other cost should be reduced through purchasing or procurement at
lower cost. That is, buying from other sources at cheaper prices.
3. KMPC should increase a little higher the price to create more return and used the waste
product to develop other products to increase income. Organization must also increase the
volume of production and look for another source of market for continuous to procure raw
materials and where to dispose the finished product; and,
4. With the aim to have uniform taste of the ube wine products, measuring equipment
should be calibrated and use during mixing process to have uniform mixture. Cleanliness
and sanitation to the production site/area should also monitor and maintained to avoid
contamination.
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LITERATURE CITED
ALLEN, M. E. 2005. How to develop and Maintain Quality. 2nd Ed. Pp. 1-20.
AP-AP, M. C. 2008. A Documentation on Ube Wine Processing Enterprise, Sablan,
Benguet. B. S. Thesis. Benguet State University, La Trinidad, Benguet. Pp1-15.
CALIGING, E. S. 2005. History of Sablan. Municipal Planning and Development
Office.Pp 1-2.
_______________. 2005. Sablan Socio-Economic Profile: Municipal Planning and
Development Office.
EVANS, J. R. and LINDSAY, W. M. 2011. Understanding Total Quality Management. 2nd
Ed. Pp. 17-43.
SONAY, C. Q. 2004.Yam Processing Technologies Used at the NPRCRTC, Benguet State
University. B. S. Thesis. Benguet State University, La Trinidad, Benguet. Pp 4-8.
TANDOC, A. M. 1994. An Assessment of the Cultural Management Practices of Ube
Wine Production in Sablan, Benguet. BS Thesis. Benguet State University, La
Trinidad, Benguet. Pp 1-2; 5.
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