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Mang Danny’s Ice Cream

Background:

Starting with only P2,000 as his capital for his three-tube special “dirty ice cream”
business, Mang Danny is now earning an average P5,000 for all the 1,225 cones sold
per night back then. His one serving of ice cream cost 20 pesos.

Continuing for over a month now, Mang Danny knows that some of his rivals are now
raising their brows on him as he is the fortunate one who got the profound respect of a
group of clients. Be that as it may, fortunes was not some portion of the condition to the
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achievement of Mang Danny, it is a result of forty-six years of testing for the ideal
formula. As he recalled, "In my more youthful days, the suitors of my sisters will get to
know me so that they can get nearer to them." Some of those suitors were ice cream
vendors, who showed him the procedure of ice cream making. Considering this to be a
chance to progress throughout everyday life, he started making ice cream when he was
only fourteen.

When he got married at the age 20, he left Matalam, North Cotabato to wander on
offering ice cream in Davao City where the possibilities of getting more clients called.
He and his wife, Yolly rented a house for a long time in Agdao District until the point
when they could purchase a little parcel at Mabini Street along Quezon Boulevard to
cater his developing family.From offering ice cream alone, he could finance the studies
of his offspring Elena, Maria Fe, and Jessy Nilo, his family depends just on the ice
cream that Mang Danny is offering. In this way, he needs to strive to have the money
that they need to survive. He used to wander the roads of Claveria and Sta. Ana amid
the day under the singing warmth of the sun. Since it is their exclusive wellspring of pay,
Many Danny decided to experiment his dessert to improve it tasting than the rest.

Driven by his inspiration to help his family, Mang Danny did everything just to be a
decent ice cream creator until the point when individuals gradually perceived his ice
cream. Mang Danny’s ice cream was even featured in Korina Sanchez-Roxas show
entitles, Rated K, where she went to Davao just to taste Mang Danny’s ice cream that is
why when tourists visit Davao they will always look for Mang Danny’s ice cream and
want to taste and experience Davao’s bestselling ice cream.

Mang Danny’s ice cream is one of the best seller in terms of dirty ice cream here
in Davao city that can be only located in Roxas night market. At first Dionilo Dela Torre
or formerly known as Mang Danny did not really started in the ice cream business but in
selling fishes and putting up a sari-sari store. Mang Danny suddenly thought of selling
ice cream while gaining profit as a means of making people happy while gaining extra
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income from it and didn’t expect that it would really gain attention because of its flavorful
taste.

Mang Danny’s goals are simple. He wants to make people happy and contented
with his ice cream while gaining profit. He made sure that everything was in their
highest quality and was made passionately. Mang Danny’s ice cream started to ring a
bell when one of his customers posted and stated on Facebook that Mang Danny’s ice
cream was the best ice cream he ever tasted. This made the public curious of the ice
cream that Mang Danny was selling. It even attracted a lot of customers because the
price of Mang Danny’s ice cream was a lot cheaper than any other ice cream sold
around the town with a price of 20 pesos you get to eat a 6-scoop ice cream with 3
flavors.

The company is self-named. Mang Danny is the owner of his ice cream. Even
though a lot of companies were after his recipe and brand, he didn’t give in and he
pursued his own dream. Building a company is not an easy task because it requires
money and knowledge. Mang Danny’s nephew contributed a lot of financial aid. His
nephew who was revealed to be an OFW provided him with the money to mass-
produce.

Mang Danny’s offers a variety of flavors to choose from such as Ube, Mango,
Avocado, Durian, Strawberry and Vanilla. They currently have 2 branches which is
located at Tibungco(Main branch) and General Santos City.

According to the managers from Tibungco and Gensan, they have 5 and 3
employees, respectively. They refused to disclose their employees’ names but revealed
their age and sex.

 General Santos Branch 2 Males –22 and 24 year olds

Manager’s age: 45 years old (F) 1 Female – Mid 30’s
 Main Branch-Tibungco 3 Females – 20, 22, 26 year olds
Manager’s age: refused to say (F) 2 Males – 27 and 21 year olds
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Company’s Logistics and Supply Chain Process:

Customer &
Supplier Manufacturing Packaging Refrigeration Distribution
Consumers

In Mang Danny’s Ice cream, they start off with the procurement of the materials
and ingredients needed for their Ice Cream to be created. Supplies are mostly bought at
the public market and then delivered to their manufacturing station wherein the
ingredients will be processed for them to create the ice cream. After the ice creams
have been created it will be transferred immediately in its respective container and will
be packaged accordingly depending on what flavors it will be. After being package it will
be then stored in an refrigerated storage area

Understanding their warehouse Function and Design:

Moving food and other temperature-sensitive products from place to place always
involves co-ordination, risk mitigation and often strategic cold warehousing along the
cold chain. Some products are more fragile than others, but most perishable products
are particularly averse to the freeze-thaw cycle. Bananas, for example, will keep in a
mild cold temperature range but certainly must not freeze, while ice cream standards
require avoiding softening and then refreezing.

For food safety and tasting purposes, the International Ice Cream Association (IICA)
provides widely circulated suggestions on the proper handling and storage of ice cream
and related frozen desserts, to help retailers protect these tasty products.
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Temperature for ice cream products stored in the supermarket’s freezer case should be
no warmer than -20°F. If they are kept at their proper temperature, they will be
thoroughly frozen and feel hard to the touch.

In order to get ice cream, frozen yogurt, popsicles, gelato and all members of this tasty
family of foods delivered to the retailer in good condition, warehousing services have
stepped up to provide distribution centers able to maintain this temperature range. A
facility that can maintain steady temperatures under the threshold will be able to help
maximize shelf life, and therefore commercial potential, for an ice cream shipment.

Heat shock is the enemy of ice cream. In transit and in distribution warehousing stages,
this product risks ice re-crystallization, lactose (milk sugar) crystallization, shifts in the
size of tiny air cells and, disturbingly, a reduction in ice cream volume, leading to a
defect known as ice cream shrinkage.

Mang Danny’s Warehouse is composed of 3 components: The receiving area, wherein

ice creams are being accepted and checked if it is ready to stored or any defects can be
found so that it will be taken action immediately. After being received and checked will
be forwarded to the storage area wherein it is just like a large freezer for storing ice
cream products to avoid melting since those are ready to be delivered in each of their
distributors. Last is the delivery area, it is where ice cream delivery trucks are located.
Ice creams are being piled up in the truck for further delivery. They design also their
truck which specializes in avoiding their products to be melted while traveling for
delivery.
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Sample image of a common ice cream warehouse

Sample image of Trucks used for delivering ice creams

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Understanding the Role of their Supplier:

According to the information gathered by the researchers through numerous

phone calls with the manager of the main branch of Mang Danny (Tibungco), she said
that the needed ingredients are collected from suppliers from a public market
(palengke), either Agdao or Bangkerohan.

Ingredients needed such as fruits, milk, sugar and etc. are being brought directly
from the public market and then delivered directly to their manufacturing station.

Agdao Public Market was advertised as the cleanest wet market in Davao. It is
one of two large open markets in the area. This is a very large and popular market with
all sorts of goods available, including fruits and vegetables, meats and fish, rice,
restaurants, bakeries and any number of electronics, clothing, household items, etc.
Anything you could want from a market basically. It is located at Agdao, Davao City,
Davao del Sur.

Bankerohan Public Market is the place to go if you're looking to stock up on

fresh produce, sample some local fruits or grab a bite at one of the market's street food
stalls. Morning is the best time to visit.and they are open 24hours. It is located at
Building No: 2, Marfori Street, Barangay 5-A, Davao City, Davao del Sur
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Bangkeronan Public Market

Agdao Public Market

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Current Management of Inventory:

Mang Danny’s Ice cream currently uses Manual Inventory wherein they hire people to
do individual task assigned for specific items just like Data encoding, Counting of
available items and sold items, ice creams to be delivered and etc. Each manual step is
filled with possibilities for human error, from counting on the warehouse floor to data
entry to manipulating the data. Each mistake-filled action can worsen the problem, and
only a manual re-do could restore any sense of accuracy.

One of the big negatives to manual counting is the difficulties in turning paper-based
information into useful data. Making marks on a checklist is one thing and typing those
results into a spreadsheet can be a daunting task.

Lead time of their product and its impact in inventory:

The following are thing needed to be done in creating an ice cream:

1. BLEND THE ICE CREAM MIXTURE

The milk fat source, nonfat solids, stabilizers and emulsifiers are blended to ensure
complete mixing of liquid and dry ingredients.

2. PASTEURIZE MIX

Ice cream mix is pasteurized at 155°F (68.3°C) for 30 minutes or 175°F (79.4C) for 25
sec. The conditions used to pasteurize ice cream mix are greater than those used for
fluid milk because of increased viscosity from the higher fat, solids, and sweetener
content, and the addition of egg yolks in custard products.

3. HOMOGENIZE
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Ice cream mix is homogenized (2500 to 3000 psi) to decrease the milk fat globule size
to form a better emulsion and contribute to a smoother, creamier ice cream.
Homogenization also ensures that the emulsifiers and stabilizers are well blended and
evenly distributed in the ice cream mix before it is frozen.

4. AGE THE MIX

Ice cream mix is aged at 40°F (5°C) for at least 4 hours or overnight. Aging the mix
cools it down before freezing, allows the milk fat to partially crystallize and the gives the
proteins stabilizers time to hydrate. This improves the whipping properties of the mix.

5. ADD LIQUID FLAVORS AND COLORS

Liquid flavors and colors may be added to the mix before freezing. Only ingredients that
are liquid can be added before the freezing, to make sure the mix flows properly through
the freezing equipment.

6. FREEZE

The process involves freezing the mix and incorporating air. Ice cream mix can be
frozen in batch or continuous freezers and the conditions used will depend on the type
of freezer. Batch freezers consist of a rotating barrel that is usually filled one-third to
one-half full with ice cream mix. As the barrel turns, the air in the barrel is incorporated
into the ice cream mix. Ice cream freezers designed for home use are batch freezers.
Continuous freezers consist of a fixed barrel that has a blade inside that constantly
scrapes the surface of freezing barrel. The ice cream mix is pumped from a bulk tank to
the freezing barrel and the air is incorporated with another pump just before it enters the
freezing barrel. The continuous freezing process is much faster than the batch freezing
process.

The addition of air is called overrun and contributes to the lightness or denseness of ice
cream. Up to 50% of the volume of the finished ice cream (100% overrun) can be air
that is incorporated during freezing. The overrun level can be set as desired to adjust
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the denseness of the finished product. Premium ice creams have less overrun
(approximately 80%) and are more dense than regular ice cream.

At the point of discharge from the freezer (draw temperature), only about 50% of the
water in ice cream is frozen. Soft serve ice cream is generated at this point in the
freezing process.

7. ADD FRUITS, NUTS AND BULKY FLAVORINGS (CANDY PIECES, ETC.)

Fruits, swirls, and any bulky type of flavorings (nuts, candy pieces, etc.) are added at
this point. These ingredients cannot be added before freezing or they would interfere
with the smooth flow of the mix through the freezer. The ice cream at this point is soft
and it is easy to mix in the bulky flavorings so they are uniformly distributed throughout
the ice cream. Mixing in bulky flavorings after freezing also prevents damage to the
pieces and allows them to remain whole or in large chunks.

8. PACKAGE

As desired, depending on the product.

9. HARDEN

The ice cream is cooled as quickly as possible down to a holding temperature of less
than -13°F(-25°C). The temperatures and times of cooling will depend on the type of
storage freezer. Rapid cooling will promote quick freezing of water and create small ice
crystals. Storage at -13°F(-25°C) will help to stabilize the ice crystals and maintain
product quality. At this temperature there is still a small portion of liquid water. If all the
water present in the ice cream were frozen, the ice cream would be as hard as an ice
cube.
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Steps being followed in creating Mang Danny’s Ice cream

The lead time for their suppliers is estimated about 2-4 days. It takes 2 days for Mang
Danny’s ice cream to create an estimated amount of 1000 1.5L tubs which will be
delivered and sold to their local distributors. Being delayed in delivering their products
would mean deficit in supply therefore there are less supply available that would cater
the instantaneous needs of their consumers.
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Inventory Techniques currently used:

Currently, Mang Danny’s ice cream is using the Fixed Order Quantity technique
wherein goods are ordered according to a set period of time. This approach is common
for small stores without sophisticated systems.

Mang Danny’s Ice Cream distributes its ice cream to its 2 branches located in
Tibungco and General Santos City which are responsible in distributing to local stores
and malls. They first supply them with a specific amount of each ice cream flavors they
offer since they are not that popular in the ice cream industry. After distributing their ice
creams and being sold they would check which flavors are needed to be stocked on the
next restocking period.

Diagram the supply chain process for the Manufacturing Facility

Delivery of
Inspection of
Market Materials Receiving Disinfecting Manufacturing
Materials
neeed
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Cost Analysis for a Purchase Decision

Since Mang Danny started to engaged itself in the ice cream industry after being
in the dirty ice cream industry, below are currently the prices (Per 1.5L) of Mang
Danny’s ice cream and its top competitors in the ice cream industry.

Mang Danny's

Nestle

Selecta

Magnolia

0 50 100 150 200 250 300 350

As it is shown in the chart, the price most people would like or willing to pay for a
1.5L of ice cream is in the range of ₱190 - ₱260.Mang Danny’s ice cream is priced way
higher than its competitors since most people would love to try Mang Danny’s without
having the hassle of lining up thus helping him to expand his own business. Another
reason is because of its popularity in the local district wherein it became the top seller
dirty ice cream in Davao City.
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Mang Danny’s 1.5L of ice cream costs Php 290.00.

Nestle - ₱230 – ₱260 depending on the flavors Selecta - ₱190- ₱230 depending on the flavors

Magnolia - ₱230 – ₱260 depending on the flavors

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Diagram a typical warehouse

Storage Request
Inspecting
Receiving Area Area
Area

Defect Delivery
Area
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Explain Inventory Option that are available

One of the best inventory options that are available for use is the barcode
system. This system uses the familiar label of black stripes that are already affixed to
the product, packaging or pallet. Wearable barcode readers can speed up this process,
allowing workers to shave scanning time a few seconds per item. One of the main
advantages of the bar code system is the data is input in a useful digital format at the
same time, so the count is more real-time. With the accuracy they get with barcodes,
managers have more confidence to make purchasing and sales decisions based on the
inventory levels. If Mang Danny’s will use these in their further operations it would be
much easier for them and much less human errors will be made.
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REFERENCES:

Danny the man behind the ice cream

|http://www.sunstar.com.ph/davao/weekend/2015/11/14/danny-man-behind-ice-cream-
441529

Ice cream - Europe. (2010, July). Retrieved from

http://academic.mintel.com/display/490735/?__cc=1

Ciemcioch, S. (2018, September 21). Everything You Need to Know About Inventory

Management. Retrieved from

https://www.warehouseanywhere.com/resources/inventory-management/

Grabianowski, E. (2018, December 20). How Ice Cream Works. Retrieved from

https://science.howstuffworks.com/innovation/edible-innovations/ice-cream1.html