OPERATIONS MANAGEMENT CLASS PROJECT: FOSTERING

CREATIVITY AND INNOVATION WITH LEAN, PROCESS ANALYSIS,

AND LEARNING CURVE CONCEPTS
MAC - A SQUIZZES

Presented to the

School of Business and Accountancy

Central Philippine Adventist College

Alegria, Murcia, Negros Occidental

In Partial Fulfillment of the

Requirements in

Operations Management

Submitted to:

Sheila Joy Samijon, CPA, MBA, CB

Submitted by:

Angelie Catalan

Carlyn Tagalogon

Miza Cantila

Anyx Pearl Acaso

January 2025
 TABLE OF CONTENTS

Table of Contents ..........................................................................................................i

Executive Summary .....................................................................................................1
HISTORY OF THE PRODUCT ................................................................................ 2
MEMBERS AND CONTRIBUTIONS ...................................................................... 3
PROCESS ANALYSIS ................................................................................................4
Financial Statements ....................................................................................................5
Individual Learning Insights ...................................................................................... 7
APPENDICES ............................................................................................................10
Doccumentation ................................................................................................... 10
Online orders ........................................................................................................11
Feedback .............................................................................................................. 12
SBA BOOTH .......................................................................................................12

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 EXECUTIVE SUMMARY

This activity focused on providing us students with the hands-on experience of

running a business where we are required to conceptualize, manufacture and sell a

product while employing certain key TQM concepts. It also gave us a chance to hone

our skills in customer service, prototype enhancement and collaboration.

We had to go through a creative and a rather complicated process of taking the

idea of a product that was conceived and turning it into an actual product that was

ready to be sold on the market. We were initially worried if our product will garner

even a single sale. However, by distributing free samples and welcoming feedback,

we were able to perfect the final output. This helped us obtain the interest of the

customers, which eventually helped us hit our desired sales, making the endeavor

worthwhile and a good area of learning.

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 HISTORY OF THE PRODUCT

Upon reading the first instructions from our instructor, the group thought first

of developing a sustainable art creation—a lamp out of plastic bottles. We tried to do

it, but we failed due to lack of materials. We also tried to develop a tool or a gadget

product, an anti-theft umbrella, but since it is not so possible to make a physical

prototype, we also let go of that idea. Now since our previous ideas don't seem to

work, we brainstormed again and decided to resort to food innovation.

We endeavor to introduce a somewhat healthy food product that we cannot

usually see inside the campus. Hence, we tried to research and use the internet for

reference online. As we did our research, we came across this cooking tutorial on how

to make homemade churros. As we were engrossed with the tutorial, it occurs to us

that we don't usually see this product on the campus. As we tried to note the

ingredients, we realized that churros are basically just made of a basic dough of flour.

And to make the churros healthier, we decided to use squash as a main ingredient

instead of flour—we often see squash in the CPAC store.

So basically, our product is inspired by the traditional churros, and we tried to

spice it up by adding squash in the ingredients. To make sure that we would have

customers, we decided to cook churros the night before we presented the product to

the class. We gave our cottage mates and dorm mates a free taste, and we asked for

their feedback. And some say that they did not expect that it was made out of squash;

some say it lacks flour, and others said that they will definitely buy it if we ever tried

to sell it.

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 MEMBERS AND CONTRIBUTIONS

Angelie Catalan - Role: Group Leader

Incharge: Documentation

Anyx Pearl F. Acaso - Role: Record Keeper

Incharge: Comprehensive Report

Carlyn Tagalogon - Role: Purchaser

Incharge: Gather Feedback

Mizalem Cantila - Role: Assistant Leader

Incharge: Flyers and Online posters

Social Media Campaigns: All

Cook and Sell: All

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 PROCESS ANALYSIS

The product's life-cycle began with the design stage, during which the group

intended to make a unique healthy food item for the students on the campus. With

inspiration from churros and using squash as the main ingredient, the product was

innovated to be more healthy and attractive to a broader audience. After

brainstorming and testing initially, free samples were handed out to dorm mates and

cottage mates to collect feedback. This feedback helped in refining the flavor, texture,

and presentation of the churros before the sales activity. Customer needs were also

taken into consideration by concentrating on satisfiers like a balanced flavor and

crunchy texture, avoiding dissatisfiers like unsturdy packaging, and adding exciters

like the surprising use of squash and a well-crafted syrup.

At the sales stage, the group set up a booth near the SBA store to attract

customers and introduce the product to the public. One of our marketing strategies

during the sales stage was through word-of-mouth promotion and fliers. On day one,

we accepted orders online and focused on customer interaction. We solicit feedback

from customers on aspects such as flavor, texture, and presentation. From the survey,

strengths like balanced sweetness and a delightful texture were observed, but there

was room for improvement in terms of uneven frying and too oily churros.

By day two, the group made several changes. They changed their fry

techniques to ensure that the fritters cooked evenly and made sure that the churros

would not be too oily. Consistency in quality was maintained. All these changes

resulted in an improved product that met customer satisfaction, sold well, and

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 provided a rewarding learning experience. The selling of products during the day was

also through online orders and house-to-house delivery.

By day three the group now set up their products at the front of the SBA store.

The product now has two flavors, squash and ube. But since we were not able to sell

all of the products, the group decided to visit the dorm area and sell the product there.

We also decided to post our poster online so that others can also place their orders

online. After day three of selling our product, we can say that we have reached our

target sales and made a small profit out of it.

FINANCIAL STATEMENTS

MAC - A SQUIZZES
Income Statement
For the Three Days Sales

Sales (a) ₱1,440.00

Cost of Goods Sold (b) 948.00
Gross Profit 492.00

Operating Expenses:
Marketing 50.00
Net Income ₱442.00

(a)
Price per
Produce (pcs.) Sold (pcs.) Profit
pcs.
Day 1 25 25 20 ₱500.00
Day 2 24 23 20 460.00
Day 3 25 24 20 480.00
Total Sales 1,440.00

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 (b)

Particulars Amount
Ingredients ₱632.00
Gasul (cooking oil) 150.00
Packaging (cup) 166.00
Total COGS 948.00

MAC - A SQUIZZES
Cash Flow Statement
For the Three Days Sales

Cash Inflows
Cash receipt from customers ₱1,440.00
Total Cash Inflow 1,440.00

Cash Outflow
Direct Cost
Ingredients (Squash, oil, syrup, etc. ₱632.00
Gasul (cooking oil) 150.00
Packaging (cup) 166.00
Operating Expenses
Marketing 50.00
Total Cash Outflow ₱998.00

Net Income ₱442.00

Partiulars Amount
Squash 70.00
Ube 74.00
Flour 90.00
Butter 154.00
Oil 70.00
Egg 60.00
Sugar 46.00
Chocolate Syrup 58.00
Vanilla 10.00
632.00

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 INDIVIDUAL LEARNING INSIGHTS

Carlyn:

The experience that I got in this activity was great. This real-life application of

the theories I have heard and learned inside the classroom has opened another level of

experience for me. From brainstorming to conceptualizing and developing the product,

I realized how challenging and rewarding it is to manage a business. Another thing is,

I also got to see the significance of listening to your customers. Feedback is really

important in business, however big or small it is, in order to satisfy the customers.

Their insights could make a significant difference for the product.

It was actually a great experience to have this activity during the class, we

were able to appreciate all the discussion especially on the application of learning-

curve theory. As we were cooking and repeating the same processes, even without a

copy of procedure, I was able to memorized it and almost got perfect result. My task

was not just about gathering feedback, I was also the one who purchased the

ingredients, while doing this task, I was able to utilize my skills that I learned in Total

Quality Management, taking into account not just the processes done but also looking

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deeply on the materials that we’re gonna use, making sure that the ingredients used is

of quality but would not compromise the price of our product.

Anyx:

My takeaway from this activity is the importance of teamwork and

collaboration. I mean, with all of the revisions and changes during this activity, if its

not of the teamwork, we would not be able to reach this far. The collaboration of the

unique attributes and skills of the members was a big factor for the completion of this

activity. I admire how we bonded through this activity. Challenges are inevitable

sometimes, but we still find the courage and strength to overcome it because we know

that we will support each other.

Angelie:

Participating in this activity has taught me things. In the first part of this

activity, I learned that unnecessary activities in life should be eliminated, for they will

just hold back your success. In my life as a student, I should always seek to improve

my skills and knowledge. Another thing is, as a future manager, I think it is very

helpful that I learned about total quality management this early. And this principle is

an eye-opener that profit should not just be the goal in managing a business but also to

provide a total quality service to the customers and the people that are serving the

business.

Miza

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 Doing the final activity was quiet challenging yet very impactful to me,

personally. The activity showed me the importance of proper planning and

preparation. It really requires brainstorming about the product and proper

conceptualization of ideas. The first challenge i encountered together with my

groupmates was choosing what product to sell. We’ve been through a lot, from

advanced umbrella to food innovations. Choosing what variations to sell was also one

of the challenges, but with the determination and cooperation of everyone, we were

able to finished the activity. Also, our experience in this activity teaches us that, in

creating products, thorough plan is necessary, for rushing things without a clear plan

could lead to unnecessary problems. In terms of participation and contribution,

everyone equally helped throughout the process. As for me, I supervised all

throughout the cooking process and make sure that we will be able to sell a great

product. I also created the marketing flyers or posters and helped with the selling

process. Overall, my part was to supervise and make sure everything is done

accordingly. And with that I learned that, when your first idea doesn’t work, do not

give up and be resourceful in solving problems and creative in handling challenges.

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 APPENDICES

DOCCUMENTATION

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ONLINE ORDERS

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FEEDBACK

SBA BOOTH

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