Bread manufacturer in Aklan gears up to Industry 4.0

The Department of Science and Technology (DOST) Region VI is set to provide technology innovation to Filbake Food Corporation (FFC) through the recent transition of Small Enterprise Technology Upgrading Program (SETUP) 4.0.

Tracing its roots in Aklan, FFC is currently one of the leading bread manufacturers that engages in the manufacturing and distribution of more than 200 bakery products for local bakeries and quick-serve restaurants, including those of national food brands. FCC is also one of the technology adopters of the Enhanced Nutribun or also called as e-Nutribun, developed by the Food and Nutrition Research Institute of the Department of Science and Technology (DOST-FNRI).

With the rapid emergence of Industry 4.0 and the debilitating effects of the pandemic, the DOST’s SETUP recently transitioned to the next phase called SETUP 4.0, to allow manufacturers in enhancing their production processes by focusing more on cutting-edge technologies.

As the program intends to foster an excellent innovation climate, the bread manufacturer will conform to the strategic themes of SMARTER or Sustainable Economy, Market Competence, Able Human Capital, Responsive S&T Support Infrastructure, Technology and Innovation, Enterprise Support, and Resiliency and Continuity.

Also, under the SETUP 4.0 is the Innovation-Enabling Fund (iFund), a major technology transfer and commercialization program that provides assistance for the upgrading of existing production facilities of MSMEs or organizations as well as the acquisition of other critical requirements in the production line.

Garnering numerous national awards and recognitions, FFC has already availed the assistance twice.  Last 2012, they were provided with a water chiller, proofing room, rack oven, and horizontal packing machine which helped in the improvement of their overall process and product quality.

Moving forward to 2016, they again availed of the assistance, leading to the improvement of their product quality and safety, enhanced compliance of food safety requirements, increased production volume and sales, and provision of employment opportunities.

Recently, they applied for the third phase of assistance with the project entitled “System Improvement for Bakery Products of Filbake Food Corporation” which aims to improve their current inventory, documentation, monitoring, and auditing practices.

Through the procurement of the necessary hardware and software, they are expected to reduce average logistics dispatching time by at least 50-66%; reduce average inventory error/pilferage/expired stocks to 3% of the Total Cost of Goods Sold (COGS; and reduce the processing time of issuance of checks and payment by at least 50%.

With the technical assistance of DOST VI on system improvement, FFC will have a better system update on stores sales and inventory from 1-2 days to real-time which will give them an updated inventory of available stocks from manual counting monthly to automatic counting daily.  Likewise, it will also create a purchase request from in-house and on-paper to online and remote.  The improved process of sending a purchase request to the purchasing department from manual to automatic and real-time will save at least 26 hours of processing time, and also make the item checking process from 3 days to 1 day or by at least 66.7%.

Moreover, FCC is expected to avoid overlooking supplier payment by employing a system that notifies the firm of overdue and paid sales invoices.  The production volume is expected to increase by at least 27%, and sales by at least 50% during the first year of project implementation, and with at least 10 additional employees to be hired.

Recently, the signing of the Memorandum of Agreement between FCC and DOST Region VI was conducted with their Executive Vice President, Ms. Josefina Lucille Dela Cruz, and Purchasing Manager, Ms. Shy Ivy Lim.  (JJMoleño/SSalazar/DRGTibubos/DOST VI-KMU)