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Green Productivity Demonstration Program

Jo Na's International Philippines Inc

Complete Case Study   |  Training Manual  |  Executive Summary

Jo-na's International Philippines, Incorporated is a medium-sized food-processing firm established in 1981 and located in Quezon City, Philippines. The factory processes both snack foods and preserved fruits for export to the United States, some parts of Asia, and in Europe. It is known to be a pioneer in introducing Nata de Coco (Coconut Gel) in Japan. The company is also one of the countryfs pioneers in food preservation and banana chips-making.

Typical of any SMEs in the Philippines, Jo-nafs has been confronting various productivity and environmental problems in going about their daily operations, thus the need to introduce a new strategy in addressing these problems had been felt.  By implementing GP, the company had hoped to increase their productivity and efficiency. The other major objective of the project has been to achieve ISO 14001 certification by implementing GP.

The review of the nata de coco processing line involved looking into the various processes like water and wastewater monitoring using material balance analysis, flow chart analysis, and Ishikawa Diagram (Cause and Effect Analysis). These investigations allowed the GP team to get a clearer picture of how the raw materials were used and wastes were generated. It was found out that one of the major problems of the nata processing line was the excessive use of water and the high level of acidity of the wastewater generated, ranging from 4 to 5.9 pH level. The company produced an average of 70 – 80 cubic meter of wastewater per day.

Before the GP program was started, water consumption figures alone showed that the company used 23,753 cubic meters for the year 2001. This is translated to an estimated cost of PhP 950,133 (US$ 19,003 based on an exchange rate of US$1 = PhP 50). Meanwhile, monthly operating costs of the wastewater treatment plant had amounted to PhP 75,866 (US$ 1,517) for the same year.

 Key problems identified were:

•Design of various handling equipment was not appropriate since they cause spills; it was designed without considering the sizes and shapes of vessels and drum that would be placed on it.

•There was no proper rinsing technique being applied since equipment and ancillary production items are washed with fresh, clean water.

•Materials needed more washing since it was contaminated due to sharing of equipment and machines.

•Manual pouring of syrup causes spillages on the equipment and on production floors.

•Workers had no awareness of waste minimization nor productivity programs due to lack of training and orientation.

•Some raw materials were accepted even it had high pH and sap content, which are against the set standards and requirements of the company.

•Spillages were caused by routes and unorganized flow of work as well as the lack of concentration of the workers because of the excessive heat in the work area.

Implementation of GP at Jo-nafs was successful such that the company was able to save about PhP 104,764 (US$2,095) from the reduction of water consumption alone. A total of PhP 574,834 (US$ 11,497) was saved by the company from adopting GP and improving operations at wastewater treatment plant. The company was also able to comply to government regulatory standards on effluent discharge as shown in the table below. Overall, Jo-nafs was able to realize a savings of PhP 1,708,681 (US$34,174) from the adoption of GP at the company at the end of the year 2002. The company is now aiming for ISO 14000 certification as part of the next steps to be undertaken for this demonstration project, after having achieved the certifiable level brought about by the successful implementation of GP. 

"We can see that our workers had been conscious of Green Productivity and that they would want to see that this (program) does not (stop at Jo-na's but) will even extend up to their families in their (being) conscious to the environment. With this Green Productivity program, we have immediately seen how it benefited us, our company."

- Mr. Philip Young & Ms. Nancy Young, Top Management, Jo-na's International Philippines, Inc

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