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Goodies and Treats Company
Tel#: (032) 495-2010 Fax#: 495-2011
Office Address: A.S. Fortuna St. Mandaue City
E-mail: [email protected]
A
APPROVAL SHEET
This study entitled “A Feasibility Study on Edible Spoon and Fork” prepared and submitted by: Alvin Baring, Raoul Julius Bascon, Frend Cabahug in partial fulfillment of the course IE-52: Project Feasibility Study has been examined and is recommended for acceptance and approval for Oral Examination.
FEASIBILITY EVALUATION COMMITTEE
Engr. Kristian CabahugChairman
Engr. Teodorico MejaranMember
Engr. Kristian CabahugAdviser
PANEL OF ORAL EXAMINERS
Approved by the panel of Oral Examiners with the grade of ____________________
Engr. Kristian CabahugChairman
Engr. Teodorico MejaranMember
Engr. Kristian CabahugAdviser
Accepted in Partial Fulfillment of the Requirements for the Degree of Bachelor of Science in Industrial Engineering
September 13, 2010 Engr. Kristian Cabahug, M. Engg. Date of Oral Defense Chairperson Allied Engineering
ACKNOWLEDGMENT
Goodies and Treats Company
Tel#: (032) 495-2010 Fax#: 495-2011
Office Address: A.S. Fortuna St. Mandaue City
E-mail: [email protected]
A
The researchers wish to express their heartfelt gratitude and sincerest appreciation to the following
persons who have contributed to the completion of this paper.
To Engr. Kristian Cabahug, the Chairperson of the College of Allied Engineering, encouragement
and suggestions in making these research a reality.
To Engr. Teodorico Mejaran, our adviser, for his much needed encouragement and assistance
throughout the research process and for his dedication in motivating us to give the best.
To Mrs. Bennette Amores, for the effort, understanding, time and expertise in the completion of
the study.
To Ms. Mae Angelie Maloloy-on for helping in the preparation of the figures in the study and for
the patience she had shown to the researcher.
To our parents, siblings, and relatives who continuously provide the challenge, and who
sustained emotional support, motivation, and love from the start of the study to its completion.
To all of our friends, the researchers wish to say THANK YOU VERY MUCH!
The researchers are forever grateful to the Most Powerful and Divine Almighty God for his
continued enlightenment in giving the knowledge and wisdom, good health and perseverance that has
made it possible for us to undertake this study and fulfill its aim.
DEDICATION
Goodies and Treats Company
Tel#: (032) 495-2010 Fax#: 495-2011
Office Address: A.S. Fortuna St. Mandaue City
E-mail: [email protected]
A
We dedicate this study to our
Dear parents who constantly support,
Care, and love us unconditionally.
We owe all of you a lot.
Table of ContentsRATIONALE.................................................................................................................................................vi
Research and Methodology.......................................................................................................................vii
SCOPE AND LIMITATIONS..........................................................................................................................viii
Chapter I......................................................................................................................................................1
MARKETING ASPECT....................................................................................................................................1
SCOPE OF THE MARKETING ASPECT............................................................................................................2
INTRODUCTION...........................................................................................................................................4
EXECUTIVE SUMMARY.................................................................................................................................5
MAJOR ASSUMPTIONS................................................................................................................................6
Target Market..............................................................................................................................................7
Description of the Market.......................................................................................................................9
Mandaue City......................................................................................................................................9
Lapu-lapu City....................................................................................................................................11
Cebu City...........................................................................................................................................13
AREA OF DISPERSION.............................................................................................................................19
Demand.....................................................................................................................................................20
Computation for the total demand per year.........................................................................................21
Projected Demand Using the Four Methods of Projections..................................................................22
Projected Demand (1 pack approx. 50g)................................................................................................23
Projected Demand Graph......................................................................................................................24
Supply........................................................................................................................................................25
Projected Supply (1 pack approx. 50g)..................................................................................................28
Projected Supply Graph.........................................................................................................................29
Past Demand and Supply...........................................................................................................................30
Proposed Strategic Marketing Plan...........................................................................................................34
Marketing Strategies and Tactics...........................................................................................................35
Distribution Channel..................................................................................................................................37
Marketing Mix...........................................................................................................................................38
Product Life Cycle......................................................................................................................................40
There are four stages in a product's life cycle.......................................................................................41
Introduction Stage.............................................................................................................................42
Growth Stage.....................................................................................................................................42
Maturity Stage...................................................................................................................................43
Decline Stage.....................................................................................................................................43
Pricing Scheme of Competitor...................................................................................................................46
Conclusion:................................................................................................................................................47
CHAPTER II.................................................................................................................................................48
TECHNICAL ASPECT....................................................................................................................................48
Scope of Technical Aspect.........................................................................................................................49
INTRODUCTION.........................................................................................................................................50
MAJOR ASSUMPTIONS:.............................................................................................................................51
PROJECT SITE.............................................................................................................................................52
Factors in Evaluating Location Analysis.....................................................................................................58
ALTERNATIVES SITES..................................................................................................................................59
PLANT LAYOUT..........................................................................................................................................60
Goodies and Treats Plant Layout...............................................................................................................63
Production Area Layout.........................................................................................................................64
PRODUCT DESCRIPTION............................................................................................................................65
The Product...........................................................................................................................................66
RAW MATERIALS...................................................................................................................................69
Description of Raw Materials.............................................................................................................69
MANPOWER REQUIREMENTS / MACHINE AND HEAD COUNT..................................................................74
Manufacturing Process..............................................................................................................................83
The Process for Making Sporkie............................................................................................................84
Detailed Description of Manufacturing Process....................................................................................85
PROCESS FLOW CHART..............................................................................................................................86
PRODUCTION SCHEDULE...........................................................................................................................87
SUMMARY OF OPERATIONS......................................................................................................................89
PRODUCTION SCHEDULE...........................................................................................................................90
FLOW PROCESS CHART OF GOODIES AND TREATS COMPANY..................................................................92
Summary of Flow Process Chart:...........................................................................................................93
INVENTORY AND PROCUREMENT SCHEDULE............................................................................................94
SAFETY PROGRAMS...................................................................................................................................96
Location of Fire Extinguishers and Direction to Fire Exits......................................................................97
Fire Extinguisher Placement Requirements...............................................................................................97
Class A...................................................................................................................................................97
Class B....................................................................................................................................................97
Class C....................................................................................................................................................97
Class D...................................................................................................................................................97
Class K....................................................................................................................................................98
MAINTENANCE PROGRAMS......................................................................................................................99
QUALITY CONTROL PROGRAM................................................................................................................100
STANDARD PROCEDURE FOR TESTING THE STRENGTH OF THE PRODUCT..........................................101
PRODUCTION FACILITIES.........................................................................................................................102
Capacity Computation.............................................................................................................................103
Conclusion:..............................................................................................................................................107
CHAPTER III..............................................................................................................................................108
MANAGEMENT ASPECT...........................................................................................................................108
SCOPE OF MANAGEMENT ASPECT..........................................................................................................109
Introduction.............................................................................................................................................110
Major Assumptions..................................................................................................................................111
Historical Account....................................................................................................................................112
Vision, Mission, Objectives and Values....................................................................................................114
Vision:..................................................................................................................................................114
Mission:...............................................................................................................................................114
Objectives:...........................................................................................................................................114
Values:.................................................................................................................................................114
Title of the Project...................................................................................................................................115
Name of the Company.............................................................................................................................115
The Company Logo:.................................................................................................................................116
Business Location....................................................................................................................................117
PROPONENTS OF THE PROJECT...............................................................................................................118
FORMS OF OWNERSHIP...........................................................................................................................119
TYPE OF ORGANIZATION.....................................................................................................................119
Goodies and Treats Company..................................................................................................................121
Organizational Chart................................................................................................................................121
PRE-0PERATING ACTIVITIES:....................................................................................................................122
Job description and Qualifications...........................................................................................................123
JOB DESCRIPTION REFERENCE.................................................................................................................127
Personnel Plantilla...................................................................................................................................128
COMPANY POLICIES.................................................................................................................................131
Health Attendance Policy........................................................................................................................132
Overtime policy.......................................................................................................................................132
BENEFITS.................................................................................................................................................133
LEAVE BENEFITS...................................................................................................................................135
COMPANY RULES AND REGULATIONS.....................................................................................................136
PERFORMANCE APPRAISAL FORM...........................................................................................................141
Waste Management................................................................................................................................145
CONCLUSION:..........................................................................................................................................146
CHAPTER IV..............................................................................................................................................147
FINANCIAL ASPECT..................................................................................................................................147
SCOPE OF THE FINANCIAL ASPECT...........................................................................................................148
INTRODUCTION.......................................................................................................................................149
Major Assumptions..................................................................................................................................150
CREDIT AND COLLECTION POLICIES.........................................................................................................151
TOTAL PROJECT COST..............................................................................................................................152
PROJECTED INCOME STATEMENT...........................................................................................................153
FINANCIAL RATIOS...................................................................................................................................157
Profitability Ratio.................................................................................................................................157
Net Profit Ratio....................................................................................................................................158
Return on Equity Ratio.........................................................................................................................158
Operating Return.................................................................................................................................159
on Asset...............................................................................................................................................159
Net Return on Asset............................................................................................................................159
Turnover ratio......................................................................................................................................160
Quick ratio...........................................................................................................................................161
Leverage ratio......................................................................................................................................161
Payback Period....................................................................................................................................162
CHAPTER V...............................................................................................................................................164
SOCIO-ECONOMIC ASPECT......................................................................................................................164
A. INTRODUCTION...................................................................................................................................165
B. IMPACT STATEMENT...........................................................................................................................166
C. COST BENEFIT EVALUATION................................................................................................................166
D. SENSITIVITY ANALYSIS.........................................................................................................................167
E. ENVIRONMENTAL IMPACT...................................................................................................................167
F. REQUIREMENTS NEEDED TO START A BUSINESS.................................................................................167
G. CONCLUSION.......................................................................................................................................168
RATIONALE
Edible Utensils like spoon and forks are increasing in popularity in other countries since these
are unique and functional products that could help control pollution by replacing disposable plastic
utensils that harm the environment. Edible utensils are not available here in the Philippines thus, giving
the proponents an opportunity to explore if producing these products would be feasible locally. The
proposed product is made of cookies because cookies are one of the favorite snacks of Filipinos. Variety
of flavors and designs of cookies are being produced in the market. People from all ages love cookies.
Although cookies are traditional foods, the technical and technological innovations are continuously
evolving to adapt them to the global consumers of all ages. Recipes have been modified and
continuously adjusted to suit the taste of the consumer. Production equipments have been improved,
modernized and up-graded to guaranty efficient productivity.
Research and Methodology
The feasibility study on Edible Spoon and Fork in Cebu Provinces has gone various procedures in
determining both the independent and dependent variables or information related and significant to the
study. The following procedures were made by the proponents to obtain relevant information for the
study.
An interview was conducted on the different distributors on Edible Spoon and Fork to get the
required data for supply computation.
An interview and survey questionnaires were given to each household respondents to
determine the demand.
Data for both Supply and Demand were tailed to get the percentage.
Computation for the projection of the Demand and Supply is obtained.
An online research through the internet was made to determine potential source of resources
and related information for the study.
SCOPE AND LIMITATIONS
A Project Feasibility Study is an essential method to start a new project or to determine whether
a particular project will be profitable or not and also one way of evaluating the actual project results.
The proponent considered the five phases as its cope and limitations. These are as follows:
1. THE MARKETING ASPECT
This includes the identification of potential customer’s demand and choosing the best
method for demand and supply computation. This also includes the identification of the market
area and proper location of the firm.
2. THE TECHNICAL ASPECT
This includes choosing the right location in order to start a new business. This
determines on which machineries and equipment that are to be used and the required
manpower.
3. THE MANAGEMENT ASPECT
This includes making policy mission and vision for the company. This tackles all topics
that are related to management.
4. THE FINANCIAL ASPECT
This includes the total investment of our company and determining the profitability in
order to identify if the business is feasible or not.
5. THE SOCIO-ECONOMIC ASPECT
This includes the relationship between several people (costumers, suppliers,
community, government and others).
Chapter I
MARKETING ASPECT
SCOPE OF THE MARKETING ASPECT
INTRODUCTION
EXECUTIVE SUMMARY
MAJOR ASSUMPTIONS
TARGET MARKET
DESCRIPTION OF THE MARKET
AREA OF DISPERSION
DEMAND
SUPPLY
PAST DEMAND AND SUPPLY
PAST DEMAND
DEMAND COMPUTATION
PROJECTED DEMAND USING THE FOUR METHODS OF PROJECTONS
SUMMARY ON THE STANDARD DEVIATION ON THE FOUR METHODS OF PROJECTIONS
PROJECTED DEMAND
PROJECTED DEMAND GRAPH
PAST SUPPLY
COMPUTATIONS OF TOTAL SUPPLY INCLUDING OTHER COMPETITORS
PROJECTED SUPPLY GRAPH
PAST COMPETITOR’S MARKET SHARE
PRESENT MARKET SHARE
PROJECTED UNTAPPED MARKET
PROPOSED STRATEGIC MARKETING PLAN
MARKETING STRATEGIES AND TACTICS
DISTRIBUTION CHANNEL
MARKETING MIX
PRODUCT LIFE CYCLE
CONCLUSION
INTRODUCTION
One of the most important factors to consider in any business establishment is marketing. It involves
all activities of getting goods from the producer (as well as from distributor) to the consumers. With
proper strategy, planning and a good marketing program, the ultimate goal and main focus of any
business enterprise will be achieved and that is profitability.
Marketing is the process by which companies create customer interest in products or services. It
generates the strategy that underlies sales techniques, business communication and business
development. It is an integrated process through which companies build strong customer
relationships and create value for their customers and for themselves. Marketing is used to identify
the customer, to keep the customer, and to satisfy customer. In this aspect, companies will come up
with various marketing strategies to inform the market of what they are producing.
The company will make a product that meets customer’s expectation. The company is responsible
for the physical distribution of the product. The proponents will determine the channel of
distribution that will be used and will supervise the profitable flow of goods from the factory to its
end consumer.
Source: http://www. Wikipedia, marketing
EXECUTIVE SUMMARY
The Goodies and Treats Company, proposed as manufacturer of edible spoon and fork
The target market includes the total number of individuals particularly in a 5-14 age bracket
particularly in Cebu, Mandaue and Lapu-lapu City( these areas serve as testing markets)
The company will have direct distribution of its products to its chosen retailers down to the
ultimate consumer
Jack and Jill, Kraft, Monde M.Y San, Galinco and others are the existing competitors considered
in the Snack Industry (Cookies and Biscuits) by the Goodies and Treats Company
The proponents use the Slovins formula with percent error of 10%
Total of 100 respondents belonging to a 5-14 yrs. age bracket were surveyed to represent the
totality of Lapu-lapu, Mandaue and Cebu City individuals
Promotional activities include the use of leaflets, promotional posters and signage making with
company logo for retail stores
The company holds a 3.11% market share
MAJOR ASSUMPTIONS
The total demand is based on the total number of individual population from a 5-14 age bracket
here in Cebu, Mandaue and Lapu-lapu City
The samples were computed based on the data obtained from the National Statistics Office
The supply was based on the data gathered from major competitors
Demand is greater than supply
During its first year of operation, the proponents assume to have a market share of 1.05%
Target Market
Target Market is referred as one or more specific groups of potential consumers which an organization directs its marketing program (Dictionary of Marketing terms, p.49)
Projected target market based from the total population
The proponents’ target market belong to these areas:
o Lapu-lapu City
o Mandaue City
o Cebu City
Children from 5-14 years of age are the target market of the company. 20% of the total
population in these areas belongs to this age group. This 20% is equivalent to 316,915
people. These people are mostly students in elementary level who have buying power
because of the allowance given to them by their parents.
Population of people belonging to the 5-14 yrs. age bracket
Growth
rate 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Cebu 2% 148,811 151,848 154,947 158,046 161,207 164,431 167,720 171,074 174,495 177,985 181,545
Mandaue 4% 59,568 62,050 64,635 67,220 69,909 72,706 75,614 78,638 81,784 85,055 88,457
Lapu-lapu 8% 53,603 58,265 63,331 68,397 73,869 79,779 86,161 93,054 100,498 108,538 117,221
Total 261,982 272,162 282,913 293,664 304,985 316,915 329,495 342,766 356,778 371,579 387,224
Note: NSO population data with age 5-14 years age bracket 2007 is projected into 2010
Source: http://www.census.gov.ph./data/census2007/index.htm
Description of the Market
Mandaue City
Land Area
Mandaue City has a total of 27 barangays in a total land area of (from: land area of 3, 532 hectares last
1998 data) 4, 410 hectares. Bounded in the north by the town of consolacion, by cebu city to the south
and west and by the Mactan Strait to the east. It has the shape of a heart situated directly in front of
Mactan Island and seven kilometers away from Cebu City.
Distribution of Land Area to Uses:
Residential : 965.10 has.
Commercial : 527.7 has.
Industrial : 1,381 has.
Agricultural/others : 658.2 has.
Location
The locality is situated on the central coastal plains of the Province of Cebu, approximately at 10-19’ –
40.34" degrees latitude and 123-5-28,16"degrees longitude. Mandaue has an average elevation of land
at 55 ft. above sea level. It is bounded by the Municipality of Consolacion to the North. The City of Cebu
to the South and West by the Mactan Channel to the East.
Topography and Land Features
Mandaue’s territorial span includes 15% highlands, while the greater part of the city is the central plains
compromising 65% of its land, 11 of its barangays are distributed along the 5-kilometer shoreline.
Trade and Industry
Exporter : 243
Gen Merchandise : 1,161
Manufacturer/Importer : 608
Services : 1,473
Financial Intermediaries
Commercial Bank/Money Shops : 37
Government Banks : 4
Savings Bank : 3
Lending/Pawnshop : 45/20
Cooperatives : 20
Factors to be Considered When Investing in Mandaue City
1. Proximity to Mactan International Airport, Cebu Port, etc.
2. Safety and Security
3. Availability of quality labor force
4. Local Government’s support for new businesses
5. Adequate provision of infrastructure
6. Availability of sufficient area of land
7. Relatively advantageous land rent
8. Mandaue City’s strategic location for international business linkages
9. Amenities and facilities
10. Flat terrain.
Lapu-lapu City
Geography
Distance from Manila : 365 miles ( 1 hour travel )
Distance from Cebu Island : 350 meters at the narrowest portion of the Mactan Channel accessible
through the Mandaue-Mactan Bridge.
Topography
The area is generally flat with slopes of 0-3%. There are rivers or creeks in the island.
Climate
Average Annual Rainfall 1,638 mm
Temperature Range 65-95 ° F
Dry Season February – May
Rainy Season June – January
Trade, Industry and Tourism
Mactan Economic Zone (MEZ) Exports
MEZ exports increased by 21.0 percent to compromise 63.35 percent of the total exports and exceed its
projected share to regional exports by 1.35 percentage points. Value of exports of non-MEZ enterprises
registered to US$ 3.59 million. Manufacturing activity at the MEZ increased as manifested in the
significant rise in employment at 10.0 percent. As of the first quarter of 1998, the processing has 130
locators/foreign companies doing business in the zone employing 36,000 people with a monthly payroll
of P150 million.
Transportation and transport Facilities
This is the country’s second international airport and the most important transport facility in the Visayas
and Mindanao.
Domestic Destinations : serviced by Philippine Airlines, Grand Air, Air Philippines, Cebu Pacific, and
Mindanao Express.
International Destination : serviced by PAL and other airlines, Direct flights to the following points are
available.
Bangkok, Thailand
Brunei
Hongkong
Malaysia
Narita, Japan
Singapore
Sydney, Australia
Taipei, Taiwan
In-City and Cebu transport
Land : Jeepneys, tricycles, taxicabs, buses, cars for hire
Sea : Metro ferry, pumpboats, barges ( across Mactan Channel )
Wharves
Public : Muelle Osmena
Private : Seven( Owned by various establishments )
Communications
Philippine Long Distance Company and ISLACOM with national and international direct dialing facilities.
Hospitals
Two public hospitals with 85 bed capacity and one private hospital and various other private clinics.
Peace and Order
Lapulapu City is generally peaceful with a relative low crime rate. Protection services are provided by the
City’s Police Force, Fire Department and Barangay Tanods.
Cebu City
Location : 365 miles south of Metro Manila, located midway on the East Coast of Cebu Island
Area : 32,880 hectares
No. of Barangays : 80 barangays
Cebu City, the regional capital of Central Visayas, lies at the heart of the Philippine archipelago, 365
miles south of Manila. Located midway on the East Coast of Cebu Island, it is bounded on the north by
the Municipality of Talisay and on the west by Toledo City and Balamban.
Cebu City has a total land area of 328.80 square kilometers (32.880 hectares). Along the coast, the
terrain is relatively flat, accounting for 15% of the total area. This becomes rolling and hilly at elevations
of 40 to 200 meters above sea level, then, turns generally rugged and mountainous at elevations of 200
to 800 meters.
Natural barriers protect the city from rough elements. Along its northwestern rim lay the mountain
ranges of Cebu, while on the opposite side, Mactan Island protects the city harbor from strong winds.
Three rivers in the city- Guadalupe, Lahug and Kinalumsan – serve as natural flood drains.
The city is politically divided into 80 barangays, which are clustered into two congressional districts. The
North District with 46 barangays and the more densely populated South District with 34. Although the
city is predominantly urban, 1 of its 80 barangays (38%) is located in the uplands.
Pleasant weather generally prevails over metropolitan Cebu. It is seldom visited by typhoons, being
outside the typhoon belt.
THE RESOURCES
Cebu City has 20,655 hectares classified as alienable/ disposable land amounting to 63 percent of its
total land area. The remaining 12,225 hectares composing 37 percent are classified as public land.
There exist two distinct land uses: (1) the highly urbanized and industrialized zones concentrated in
about 5,083 hectares of flat land along the coast: and (2) the outlaying 27,797 hectares of rugged
terrain, commonly referred to as the Central Cebu Hillylands.
As to water resources, Cebu City has five major rivers with a total catchment area of 8,786 hectares that
directly affect the drainage systems of the urban and industrial zone. These rivers are the Guadalupe,
Buhisan, Subang-daku, Lahug, and Pardo Rivers.
THE PEOPLE
Cebu City’s population of 687,269 (1995 census) makes this premier city of the south the second biggest
metropolis in the country. Its strong attraction for migrants from the rural areas of Cebu Province as well
as the rest of the Visayas and Mindanao has helped to make it grow at 2.2 percent per annum in the last
decade.
Considering the proliferation of schools in Cebu City, this busy metropolis can boast of a very high
literacy rate of 97 percent. However, more females (3.4 percent) are illiterate compared to males (2.8
percent).
The Cebuanos have long been known as pioneering entrepreneurs and innovative businessmen. Largely
responsible for the Vigorous growth of Cebu’s economy, they have initiated myriad small and medium-
scale businesses that have generated precious dollars from the export of furniture, gifts, toys and
fashion accessories, garments, mangoes, dried fruits and seaweed
THE FACILITIES
Cebu City is aptly known as the premier city of the South, being an important regional center that has
set the pace of development for the Visayas and Mindanao. Since World War II, it has metamorphosed
into a locus of education and culture, attracting students not only from the Visayas but also from
Mindanao and Luzon. It has six universities, nine colleges and several technical and vocational schools
that are able to compete with Manila’s better schools. Its reputable medical colleges have attracted
students and eleven public high schools that provide education for the youth.
LOCATION
Cebu in Central Visayas is in the center of the Philippines archipelago. It is bounded on the north by the
Visayan Sea, on the east by the Camotes Sea, on the west by the Tanon Strait, and on the southeast by
the Bohol Strait.
Cebu City, with an area 329 sq. km and a population of 610,417, and Mandaue, with an area 33 sq. km
and a population 180, 285 are highly urbanized cities.
THE LAND
Cebu City, the regional capital of Central Visayas, lies at the heart of the Philippine archipelago, 365
miles south of Manila. Located midway on the East Coast of Cebu Island, it is bounded on the north by
the Municipality of Talisay and on the west by Toledo City and Balamban.
Cebu City has a total land area of 328.80 square kilometers (32.880 hectares). Along the coast, the
terrain is relatively flat, accounting for 15% of the total area. This becomes rolling and hilly at elevations
of 40 to 200 meters above sea level, then, turns generally rugged and mountainous at elevations of 200
to 800 meters.
Natural barriers protect the city from rough elements. Along its northwestern rim lay the mountain
ranges of Cebu, while on the opposite side, Mactan Island protects the city harbor from strong winds.
Three rivers in the city- Guadalupe, Lahug and Kinalumsan – serve as natural flood drains.
The city is politically divided into 80 barangays, which are clustered into two congressional districts. The
North District with 46 barangays and the more densely populated South District with 34. Although the
city is predominantly urban, 1 of its 80 barangays (38%) is located in the uplands.
Pleasant weather generally prevails over metropolitan Cebu. It is seldom visited by typhoons, being
outside the typhoon belt.
Cebuanos are predominantly Catholics. The next biggest religious sects are the Protestants, Iglesia Ni
Cristo, Muslims, Taoists, Buddhists and other smaller denominations.
Considering the proliferation of schools in Cebu City, this busy metropolis can boast of a very high
literacy rate of 97 percent. However, more females (3.4 percent) are illiterate compared to males (2.8
percent).
The Cebuanos have long been known as pioneering entrepreneurs and innovative businessmen. Largely
responsible for the Vigorous growth of Cebu’s economy, they have initiated myriad small and medium-
scale businesses that have generated precious dollars from the export of furniture, gifts, toys and
fashion accessories, garments, mangoes, dried fruits and seaweed.
AMENITIES
Cebu City is blessed with a relatively moderate climate making it a favorite tourist destination. For
expatriates and prospective investors who may have to stay therein, Cebu has excellent housing
facilities, five-star hotels, casinos, plush restaurants, big shopping malls, and other amenities including
an international school. One is never more than 45 minutes away from its white sand beaches and its
clear blue waters or from its several world-class golf courses. In short, Cebu provides a quality of life
bound only in a tropical paradise. The Cebu beats with the dynamism of its people and the vastness of
its opportunities.
ECONOMY
The Cebuanos have long been known as pioneering entrepreneurs and innovative businessmen. Largely
responsible for the vigorous growth of Cebu’s economy, they have initiated myriad small and medium-
scale business that have generated precious dollars from the export of furniture, gifts, toys and fashion
accessories, garments, mangoes dried fruits and seaweed.
ECONOMIC PROFILE
Outside of Metro manila, the City is considered as one highly urbanized area and Metropolitan Center
with the highest potential for further economic growth.
Trade and commerce lead as the City’s source of livelihood and therefore forms as its main economic
base. It has become the center of the following economic activities in the region.
a. banking and finance
b. general merchandising
c. manufacturing
d. wholesale and retail establishments
e. other linkages, including transport and communications
INDUSTRIES IN CEBU CITY
1. grain mill products
2. manufacture of bakery products
3. manufacture of food products
4. distilling, rectifying and blending spirits
5. wine industries
6. softdrinks and carbonated water
7. manufacture of cork products
8. manufactured of furniture and fixtures
9. printing, publishing and allied industries
10. manufactured of chemical products
11. processing of copras
12. manufacture of garments
13. manufacture of shell crafts
14. rattan and buri crafts
15. metal crafts
16. food processing
17. electronics manufacturing
18. stone craft
GETTING THERE
There are several flights daily from Manila to Cebu: flying time is one hour. By sea, Cebu is a 22 hours-
sailing time. There are also several international flights direct in Cebu.
Source: http://www.ngkhai.com/pointcebu/facts/mandaue.htm
http://www.ngkhai.com/pointcebu/facts/lapu.htm
http://www.ngkhai.com/pointcebu/facts/demograph1.htm#PopGrowth
AREA OF DISPERSION
Cookies can be considered one of the favorite snacks of Filipinos. Cookies are small, flat-baked treat, usually contains fat, flour, eggs and sugar. Variety of flavors and designs are being produced in the market. People from all ages love cookies.
The company that the proponent will establish involves baking cookies. Since the company is new to the market, their main focus of dispersion in its first five years of operation is at Lapu-lapu, Mandaue and Cebu City. The company seeks best ingredients and best baking procedures to come up with a distinct taste product. Combining distinct taste and a unique design that can be used as a utensil, the company has a differential advantage compared to other competitors.
The proponents decide to establish intermediaries in the form of supermarkets throughout the target cities. These intermediaries have many customers in which it gives the company a chance to gain customers.
Source: http://en.wikipedia.org/wiki/Cookie
Demand
Demand is the desire to own anything and the ability to pay for it and willingness to pay. The term demand signifies the ability or the willingness to buy a particular commodity at a given point of time.
Goodies and Treats Company determine demand as the number of individuals willing to buy their product (66% of the population according to the survey conducted). The demand was based on the data collected from National Statistics Office and considered the population of individual in Lapu-lapu, Mandaue and Cebu City.
Source: http://en.wikipedia.org/wiki/Demand_(economics)
Computation for the total demand per year (1 pack approx. 50g)
Year PopulationWilling to buy the product
Buying Power
Rate of consumption (Daily)
Daily Consumption (50g pack)
Days per Year
Total Demand (packs)
2005 261,982 66% 91% 0.6 1.14 365 39,283,1002006 272,162 66% 91% 0.6 1.14 365 40,809,5482007 282,913 66% 91% 0.6 1.14 365 42,421,6152008 293,664 66% 91% 0.6 1.14 365 44,033,6822009 304,985 66% 91% 0.6 1.14 365 45,731,219Demand Computation:
1. Individual population from Cebu, Mandaue and Lapu-lapu City were gathered from the National Statistics Office.
2. The proponents use Slovins Formula (n=N/1+Ne^2) to obtain the number of samples for the survey.
Where:
N= total number of Individual Populatione^2= 0.10^2 Margin Errorn= sample sizen= 1,410,869/1+1,410,869(0.10^2)
3. The proponents randomly surveyed and interviewed each individual representatives
4. The survey results were tallied as basis for demand computation
5. 66% of individuals are willing to buy the proponents’ proposed product
6. Total Demand Computation: (Individual Population)*(% of willing to buy the product)*(% Buying Power)*(Daily rate of
consumption)*(Daily Consumption)*(No. of Days per Year)
Projected Demand Using the Four Methods of Projections
Year Past Demand Arithmetic Straight Line Arithmetic Geometric Statistical Straight Line Statistical Parabolic2005 39,283,1002006 40,809,5482007 42,421,6152008 44,033,6822009 45,731,2192011 47,343,249 47,436,250 49,056,067 49,331,7182012 48,955,279 49,204,852 50,700,694 51,212,6172013 50,567,308 51,039,393 52,345,320 53,152,5842014 52,179,338 52,942,333 53,989,947 55,151,6192015 53,791,368 54,916,222 55,634,574 57,209,722
Summary on the Standard Deviation on the Four Methods of Projections
Methods Standard Deviation
Arithmetic Straight Line 74,083.71
Arithmetic Geometric Curve 145,728.31
Statistical Straight Line 74,792.42
Statistical Parabolic 12,904.33
Projected Demand (1 pack approx. 50g)
Year Statistical Parabolic (packs)
201149,331,718
201251,212,617
201353,152,584
201455,151,619
201557,209,722
Analysis: The proponents chose the Statistical Parabolic Method in projecting the demand because it has the lowest standard deviation. There is an increasing trend of demand over the next five years. The projected values give the proponent a conclusion that a probable segment of customers are willing to buy the product. The computed data also shows the consumers’ order behavior which is also constantly increasing each year as projected. (See appendix for the Methods of Demand Projection Computations).
Projected Demand Graph
Analysis: The graph shows the projected 5-year demand which illustrates the (4) four methods in computing projected demand. Among the four methods, Statistical Parabolic Method has the lowest standard deviation. (See appendix for the Methods of Demand Projections Computations)
Supply
Supply is the total amount of a good or service available for purchase; along with demand, one of the two key determinants of price. In food manufacturing it refers to distribution of a product. Researchers should know the other food manufacturers related to baking cookies or biscuits and other snacks because it provides a view for its competitors’ market shares and the adequacy of supply.
The proponents got their data for supply from major competitors like Jack and Jill, Kraft, Monde M.Y. San, Galinco and others. These data serve as basis for the volume of supply in the market. With the help of these data, the proponents can determine how much of the demand has not been catered in the market. This will help determine whether the proponents have a promising market for their product or a no market at all.
Source: http://www.investorwords.com/4822/supply.html
Past Supply(1 pack approx. 50g)Competitors Growth Rate 2005 2006 2007 2008 2009Jack and Jill 4% 5,488,020 5,707,541 5,935,842 6,173,276 6,420,207Kraft 2% 5,275,812 5,381,328 5,488,955 5,598,734 5,710,709Monde M.Y. San 6% 4,149,362 4,398,324 4,662,223 4,941,957 5,238,474Galinco 4% 3,657,307 3,803,599 3,955,743 4,113,973 4,278,532Total Supply 18,570,501 19,290,792 20,042,764 20,827,940 21,647,922
COMPUTATIONS OF TOTAL SUPPLY INCLUDING OTHER COMPETITORS
Total Supply for the year = (TOTAL SUPPLY OF THE TOP 4 COMPETITORS) / (4/Total No. of Competitors)
Total no. of Competitors = 8
Computation of Total Supply Including other Competitors
Year Total Supply of Top 4 Competitors 4/Total # of CompetitorsTotal Supply for the Year(1 pack approx. 50g)
2005 18,570,501 0.5 37,141,0022006 19,290,792 0.5 38,581,5842007 20,042,764 0.5 40,085,5282008 20,827,940 0.5 41,655,8802009 21,647,922 0.5 43,295,844
Analysis:
The data shown above are the number of supply the competitors’ have produced in the market per year. The growth rates were based on the average percentage growth rate given by the competitors.
Projected Supply Using the Four Methods of Projection
YearPast Supply (1 pack approx. 50g)
Arithmetic Straight Line
Arithmetic Geometric Curve Statistical Straight Line Statistical Parabolic
2005 37,141,0022006 38,581,5842007 40,085,5282008 41,655,8802009 43,295,8442011 44,834,555 44,924,128 46,466,644 46,784,2922012 46,373,265 46,613,649 48,039,560 48,629,4782013 47,911,976 48,366,710 49,612,476 50,542,7322014 49,450,686 50,185,700 51,185,392 52,524,0532015 50,989,397 52,073,100 52,758,308 54,573,441
Summary on the Standard Deviation on the Four Methods of Projection
Methods Standard Deviation
Arithmetic Straight Line 96,879.51
Arithmetic Geometric Curve 155,448.82
Statistical Straight Line 84,913.25
Statistical Parabolic 1,755.99
Projected Supply (1 pack approx. 50g)
Year Statistical Parabolic (packs)
201146,784,292
201248,629,478
201350,542,732
201452,524,053
201554,573,441
Analysis: The proponents chose the Statistical Parabolic Method in projecting the supply because it has the lowest standard deviation. There is an increasing trend of supply over the next five years. (See appendix for the Methods of Demand Projection Computations).
Projected Supply Graph
Analysis: The graph shows the projected 5-year supply which illustrates the (4) four methods in computing projected supply. Among the four methods, Statistical Parabolic Method has the lowest standard deviation. (See appendix for the Methods of Supply Projections Computations)
Past Demand and Supply
Year Demand (packs) Supply (1 pack approx. 50g) Gap % Gap2005 39,283,100 37,141,002 2,142,098 5%2006 40,809,548 38,581,584 2,227,964 5%2007 42,421,615 40,085,528 2,336,087 6%2008 44,033,682 41,655,880 2,377,802 5%2009 45,731,219 43,295,844 2,435,375 5%
Analysis: As shown in the graph, demand is greater than supply. There is a gap between the demand and the supply, giving new players like The Goodies and Treats Company a chance to grab a portion of the market in the Snack Industry (Cookies and Biscuits).
Past Competitors’ Market Share
CompetitorsPast Supply (1 pack approx. 50g)
Past Demand (packs)
% Market Share
Jack and Jill 6,420,207 45,731,219 14%Kraft 5,710,709 45,731,219 12%Monde M.Y. San 5,238,474 45,731,219 11%Galinco 4,278,532 45,731,219 9%
Total Supply for a Year 43,295,844Untapped Market 5%Others 47%
100%
Analysis: The data above shows the past market shares of competitors and the percentage of the untapped market. The untapped market is 5% which could give new companies like the Goodies and Treats Company a chance to earn a portion of the market share. The others are composed of Febisco, Ace, Magic and other bakeries that cater the demand of the market.
Present Market Share
Jack and Jill 14%Kraft 12%Monde M.Y. San 11%Galinco 9%Untapped Market 5%Others 47%
CompetitorsPresent Supply (1 pack approx. 50g)
Present Demand (packs)
% Market Share
Jack and Jill 6,677,015 47,520,072 14.05%Kraft 5,824,923 47,520,072 12.26%Monde M.Y. San 5,552,782 47,520,072 11.69%Galinco 4,449,673 47,520,072 9.36%Goodies and Treats 1,477,440 47,520,072 3.11%Total Supply for a Year 45,008,788Untapped Market 5.28%Others 46%
100%
Analysis: As shown above, the present market share of companies plus the entry of the Goodies and Treats Company. Goodies and Treats hold 3.11% of the market share. The proponents plan to increase this market share by stealing market shares of competitors and catering the untapped market. This can be done through aggressive marketing strategies and creating differential advantage. The others are composed of Febisco, Ace, Magic and other bakeries that cater the demand of the market.
Jack and Jill 14.05%Kraft 12.26%Monde M.Y. San 11.69%Galinco 9.36%Goodies and Treats 3.11%Untapped Market 5.28%Others 44.25%
Projected Untapped Market
Year Projected Demand (packs) Projected Supply (packs) % of Projected Untapped Market2011 49,331,718 46,784,292 5%2012 51,212,617 48,629,478 5%2013 53,152,584 50,542,732 5%2014 55,151,619 52,524,053 5%2015 57,209,722 54,573,441 5%
Where:
% of Projected Untapped Market= (Projected Demand-Projected Supply)/ Projected Demand
Analysis:
As shown above, there is a decrease in the percentage of untapped market as years’ progress. This is due to the constant improvement of aggressive marketing strategies done by companies in order to capture these untapped markets. Another cause of the decrease of the percentage of the untapped market is the entry of new companies that adds volume to the supply. This results to a closer gap between demand and supply.
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Proposed Strategic Marketing Plan
Company’s strategy is the game plan management using to strive out a market position, attract and please customer, compete successfully, conduct operations and achieve organizational objective.
The Strategic marketing plans of the proposed business were in line to its vision, mission and objective. With a new concept of Edible Spoon and Fork, capturing a market position serves as a challenge for the business. Strategic marketing plans play an important role to introduce the service and to achieve its objective.
Marketing Objectives:
To make people aware of its business activities
To attract customers
To increase the total number of customer served
To maintain and project the business image
To encourage customers in patronizing the service
Marketing Strategies and Tactics
Unique and functional Product.
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With its Spoon and Fork design, it doesn’t only captivate customers but it can also serve as a utensil. Undergo quality control tests to obtain the products strength, in order to have a reliable product if used.
Attractive Packaging
Package is designed to respond to customer wants and needs through style and convenience. The material used in the packaging of the product is aluminum foil. The dimension of the packaging is 3.5x6x1.5 inches. The color of the packaging is black so that the colorful logo and product name will stand out and attract buyers.
Cost Leadership Strategy
The concept is to produce and market a good quality product or service at a lower cost than the competitors. Goodies and Treats Company is not just profit oriented but is also concerned to the customer’s satisfaction. The company aims to produce a product with good quality. However, price will be set at the lowest possible value to attract customers. In determining the price, total production cost will be included and by comparing the prices of the competitors of the same product. Price must be set enough to cover all costs yet still affordable for the customers.
Differential Strategy- is creating a product or service that is perceived as being unique
throughout the industry. The emphasis can be brand image, propriety technology,
special features, superior service, a strong distributor network or other aspect that
might be specific to other industry. Some of the addition that should exist to support a
differentiation strategy includes strong marketing abilities, effective engineering,
creative personnel, the ability to perform basic research and a good reputation.
Goodies and Treats Company Product Differential Advantages:
o A. The product is unique from other existing products
o B. Has a cheaper cost
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o Raw materials are purchased locally
Basing on the following differential advantages of the proposed product, it is very much obvious that the product has a very good chance to play in the market share since people tend to buy a good quality product yet economical and affordable to everyone’s budget. The proposed product is nutritious and captures the interests of the health conscious individuals.
Advertising Strategy- is a campaign developed to communicate idea about products and
services to potential customers in the hopes of convincing them to buy the products and
services. This strategy, when built in a rational and intelligent manner, will reflect other
business considerations (overall budget, brand recognition efforts) and objectives(public
image enhancement, market share growth) as well.
Goodies and Treats Company has its advertising strategy to promote awareness of our proposed product. Since we are still to begin our new firm we chose advertising strategies that can convince the people and catch their attention yet doesn’t require much money.
o Free taste is one of the best ways on conducting our promotional activities. This
will be done on supermarkets, malls, and other establishments that people go
to buy food commodities. This would let them be aware of our product, its taste
and contents. Flyers, streamers, and leaflets are also used to make people recall
and be familiar with the company’s product. Visiting restaurants, hotels, resorts,
and schools are also being considered.
Distribution Channel
Manufacturer
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Analysis:
The cycle starts from Goodies and Treats Company. Product is being transferred from the company to
the retailers. Retailers includes: supermarkets, groceries, department stores, convenience stores and
variety stores. Retailers sell the product to the end consumer.
Source: http://en.wikipedia.org/wiki/Retailing
Marketing Mix
The Combination of the four primary elements that comprise a company’s marketing program is termed the marketing mix. The design implementation, and evaluation of the marketing mix constitute the bulk or a firm’s marketing effort.
The four elements of the marketing mix are:
Product
Managing the product ingredient includes planning and developing the right goods and/or services to be marketed by the company. Strategies are needed for changing existing products, adding new one and taking other actions that affect the assortment of
Retailers
End Consumer
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products carried. Strategic decisions are also needed regarding branding, packaging and various other product features.
Price
Management must determine the right base price for its products. It must then decide on strategies concerning discounts, freight payments and many other price related factors.
Place
Even though marketing intermediaries primarily wholesalers and retailers are largely a non controllable environmental factor, an executive has considerable latitude when working with them. Management’s responsibility is to:
a. Select and manage the trade channels through which the products will
reach the right market at the right time
b. Develop a distribution system for physically handling and transporting
thee products through these channels.
Promotion
Promotion represents all of the communications that a marketer may use in the marketplace. Management needs to inform and persuade the market regarding a company’s products. Advertising, personal selling, sales promotion, and publicity are the major promotional activities.
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Source: http://www.quickmba.com/marketing/mix/
Product Life Cycle
The product life cycle goes through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures. To say that a product has a life cycle is to assert four things:
that products have a limited life,
product sales pass through distinct stages, each posing different challenges,
opportunities, and problems to the seller,
profits rise and fall at different stages of product life cycle, and
Products require different marketing, financial, manufacturing, purchasing, and
human resource strategies in each life cycle stage.
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There are four stages in a product's life cycle.
Stage Characteristics
1. Introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage 2. Growth stage 1. costs reduced due to economies of scale
2. sales volume increases significantly
3. profitability begins to rise
4. public awareness increases
5. competition begins to increase with a few new players in establishing market
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6. increased competition leads to price decrease
3. Maturity stage
1. costs are lowered as a result of production
2. volumes increasing and experience curve effects
3. sales volume peaks and market saturation is reached
4. increase in competitors entering the market
5. prices tend to drop due to the proliferation of competing products
6. brand differentiation and feature diversification is emphasized to maintain or increase market share
7. Industrial profits go down
4. Decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, profitability diminish
4. profit becomes more a challenge of production/distribution efficiency than increased sales
Introduction Stage
In the introduction stage, the firm seeks to build product awareness and develop a market for the product. This is the point of product launch, market entry, and user-trial by the innovators. At this stage sales are slow and difficult, and the manufacture must incur heavy promotional expenditure to educate the public. The main objective here is to generate primary demand instead of the selective demand. Prices may be set high to cream the market before imitators appear, or set low to determine imitators with skimpy margins.
The impact on the marketing mix is as follows:
Product branding and quality level is established and intellectual property protection
such as patents and trademarks are obtained.
Pricing may be low penetration pricing to build market share rapidly, or high skim
pricing to recover development costs.
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Promotion is aimed at innovators and early adopters. Marketing communications seek
to build product awareness and to educate potential consumers about the product.
Place (Distribution) is selective until consumers show acceptance of the product.
Growth Stage
In this stage, the firm seeks to build brand preference and increase market share. It is characterized by product sales increasing often at a very rapid rate. It is also the stage when early entrants begin to realize profits, though the fact the market is now profitable invariably leads to increased competition. Finally, it is also the time in which competitors try to actively position their brand in a way that will separate it from the onslaught of new entrants.
Product quality is maintained and additional features and support services may
be added.
Pricing is maintained as the firm enjoys increasing demand with little
competition.
Promotion is aimed at a broader audience.
Place (Distribution) channels are added as demand increases and customers
accept the product.
Maturity Stage
At maturity stage, the strong growth in sales diminishes. Competition may appear with similar products. At some point in time sales of the product form slows. Instead of double-digit growth from one period to the next, the industry limps along with low single digit sales increases or worse. There are key reasons why this occurs. First, the market has become saturated with a large majority of potential customers having already purchased the product. Second, customers have moved on to purchase other products that are seen as replacements for this product form. In this situation, the growth of the product form may have been interrupted with the introduction of a new product form. The primary objective in this point is to defend market share while maximizing profit.
Product features may be enhanced to differentiate the product from the competitors.
Pricing may be lower because of the new competition.
Promotion emphasizes product differentiation.
Place (Distribution) becomes more intensive and incentives may be offered to
encourage preference over competing products.
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Decline Stage
A product form has reached this stage when it becomes clear that market is no longer able to sustain. Like the Maturity stage, the Decline stage may last a long time especially for products that have been adopted by a large percentage of the market who are not inclined to change how they satisfy their needs. Since the end of the product form is seen as inevitable, there are no-stages here. As sales decline, the firm has several options:
Maintain the product, possibly rejuvenating it by adding new features and finding new
uses.
Harvest the product – reduce costs and continue to offer it, possibly to a loyal niche
segment.
Discontinue the product, liquidating remaining inventory or selling it to another firm
that is willing to continue the product.
Source: www.quickmba.com
Product Life Cycle Curve
PRODUCT LIFE CYCLE
Goodies and Treats Company
INTRODUCTORY GROWTH MATURITY DECLINE
PRODUCT Product branding and Quality Level is Established
Product Quality is maintained plus additional flavors
Product enhancement
New products introduced
Product Modification
Phase out products that weakens
PRICE Price Penetration
Low- introductory price
Price is maintained
Increase of price by 5%
discounts given
PROMOTION Product Awareness
Product launching
Free tastes of the product to the supermarkets, schools, public markets, streamers,
Streamers, mascots and flyers
Commercials on radios and television
Product Differentiation
Product launching
( new products )
Streamers and flyers
Raffle promo and discounts
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flyers, Internet and newspaper advertising
Advertisement
PLACE Renting Maximize Existing Space
Expansion or buy the existing space
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Source: http://www.quickmba.com/marketing/product/lifecycle/
Pricing Scheme of Competitor
COMPANY NAME PRODUCTS’ PRICE
Jack and Jill ( Pretzel’s 50g) 0.31 ¢PHP per gram (15.50 PHP SRP)
M.Y San ( Eggnog 50g ) 0.33 ¢ PHP per gram (16.25 PHP SRP)
Galinco ( Chips Delight 50g ) 0.43 ¢ PHP per gram (21.50 PHP SRP)
Kraft Nabisco ( Chips Ahoy 50g ) 0.41 ¢ PHP per gram (20.50 PHP SRP)
Goodies and Treats Company (Sporkie 50g) 0.28 ¢PHP per gram (14.65 PHP SRP)
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Note: The 20% addition on the manufacturers’ price is based on the average mark up rate.
Source: http://www.neda.gov.ph/ads/mtpqd/chapters1-6/ch2.htm
Conclusion:
A promising market is present because of the gap of the demand and the volume of supply giving new players like the Goodies and Treats Company to penetrate the market. Though the market share of the company is small, the marketing strategies and marketing mix formulated by the proponents can help the company gain a bigger portion in the market by stealing market shares of competitors or by catering the untapped market.
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CHAPTER II
TECHNICAL ASPECT
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Scope of Technical Aspect
INTRODUCTION
EXECUTIVE SUMMARY
MAJOR ASSUMPTIONS
PROJECT SITE
LOCATION OF BUSINESS HEADQUARTER
FACTORS EVALUATING LOCATION ANALYSIS
ALTERNATIVE SITES
PLANT LAYOUT
PRODUCTION AREA LAYOUT
PRODUCT DESCRIPTION
RAW MATERIALS
SUPPLIERS OF RAW MATERIALS
SUMMARY OF MACHINE COST
MACHINERIES, TOOLS AND EQUIPMENT
MANPOWER REQUIREMENTS / MACHINE AND HEAD COUNT
MANUFACTURING PROCESS
FLOW PROCESS CHART
PRODUCTION SCHEDULE
SAFETY PROGRAMS
MAINTENANCE PROGRAMS
QUALITY CONTROL PROGRAM
PRODUCTION FACILITIES
CAPACITY OF THE PRODUCT
CONCLUSION
INTRODUCTION
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The Technical aspect is the discussion of the basic and operation flow of the project. The technical aspect is one of the essentials of this study because this factor responds to the technicalities and basic structure of the proposed study. This includes the list of equipments, materials, structure plan and also the source of the supplies use in the proposed project for business plans, promotion strategies, utilities, facilities, layout designs and location.The technical feasibility assesses the details of how the company will deliver a product or service (i.e., materials, labors, transportation, where the business will be located, technology needed, etc.). The technical feasibility study is the logical or tactical of how the business will produce, store, deliver, and track its product or services. The technical feasibility study is an excellent tool for trouble-shooting and long-term planning which serves as a flow chart of how the products and services evolve and move through the business to physically reach the market.This chapter of study discusses the technical feasibility of Goodies and Treats Company and the inferred probability of the proposed product is presented. This chapter of study pertains to discuss in detail the composition of the product, the raw materials needed, the project site or plant location and its layout, the manufacturing process, plant size, the production volume and scheduling, the manpower, structure, utilities, waste disposal, the equipment and machinery and other information deemed necessary in determining the technical feasibility.In this study detailed flow charts indicating the manufacturing process involved and the normal duration of the process are taken into account. The content of the report shall be based upon verifiable data and contain sufficient information and data analysis so that a determination may be made on the technical feasibility of achieving the levels of income or production that are projected in the financial statements. The report shall also identify and estimate project operating and development costs and specify the level of accuracy of these estimates and the assumptions on which these estimates have been based.
Source: http://wiki.answers.com/Q/What_is_technical_aspect
MAJOR ASSUMPTIONS:
Goodies and Treats Company considered the 12 non-working days, thus the total
number of days in a year is 365 days.
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Operation per year = 305 days
(Approximately 365 days/year – 12 non working days) – (48 Sundays in a year)
= 365 – 12 – 48
= 305 days
Operation per week is 6 days
Operation per month is 4 weeks
Operation per day is 15 hours
Morning duty hours =(7:00 am to 3:00 afternoon)
Afternoon duty hours=(3:00 pm to 11 pm)
The company has 2 shifts per day.
Both shifts have a 30 minutes break.
The entire process is machine operated, thus the company only needs a minimum number
of production workers.
The data gathered from the internet are used as the basis in computing the production
capacity. Plant capacity will be based on the capacity and capability of the machine.
The proponents have a supplier of the raw materials needed.
PROJECT SITE
The geographical location of the final plant can have strong influence on the success of the industrial venture. Considerable care must be exercised in selecting the plant site, and many different factors must be considered. Primarily the plant must be located where the minimum cost of production and distribution can be obtained but other factors such as room for expansion and safe living conditions for plant operation as well as the surrounding community are also important. The location of the plant can also have a crucial effect on the profitability of a project. The choice of the final site should
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first be based on a complete survey of the advantages and disadvantages of various geographical areas and ultimately, on the advantages and disadvantages of the available real estate.The proponents actually have alternative before deciding to manage at Consolacion, Cebu city. The preference sites include Alang-Alang Mandaue and Mactan, Marina Mall, Lapu-Lapu City, which are all part of the target market.
Source: http://www.gsn.org/web/webproj/design/prjsite.htm
Location of the Business Headquarters
Goodies and Treats Company is located at A.S Fortuna St. Mandaue City. The location is near by the National Highway in which it is very accessible to any land transportation vehicle.
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Source: www.earth.google.com
The various principal factors that must be considered while selecting a suitable plant site are briefly discussed in this section.
The factors to be considered are:
1. Raw material availability2. Location (with respect to the marketing area)3. Availability of suitable land4. Transport facilities5. Availability of labors6. Availability of utilities (Water, Electricity)7. Environmental impact and effluent disposal8. Local community considerations9. Climate10. Political strategic considerations
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11. Taxations and legal restrictions
Discussion of each Factor:
1. Raw Materials Availability:The source of raw materials is one of the most important factors influencing the selection of a plant site. This is particularly true for the cane sugar plant because a large volume of sugar cane is consumed in the process, which will result in the reduction of the transportation and storage charges. Attention should be given to the purchased price of the raw materials, distance from the source of supply, freight and transportation expenses, availability and reliability of supply, purity of raw materials and storage requirements.
2. Location:
The location of markets or intermediate distribution centers affects the cost of product distribution and time required for shipping. Proximity to the major markets is an important consideration in the selection of the plant site, because the buyer usually finds advantageous to purchase from near-by sources.
3. Availability Of Suitable Land:
The characteristics of the land at the proposed plant site should be examined carefully. The topography of the tract of land structure must be considered, since either or both may have a pronounced effect on the construction costs. The cost of the land is important, as well as local building costs and living conditions. Future changes may make it desirable or necessary to expand the plant facilities. The land should be ideally flat, well drained and have load-bearing characteristics. A full site evaluation should be made to determine the need for piling or other special foundations.
4. Transport:
The transport of materials and products to and from plant will be an overriding consideration in site selection. If practicable, a site should be selected so that it is close to at least two major forms of transport: road, rail, waterway or a seaport. Road transport is being increasingly used, and is suitable for local distribution from a central warehouse. Rail transport will be cheaper for the long-distance transport. If possible the plant site should have access to all three types of transportation. There is usually need for convenient rail and air transportation facilities between the plant and the main company head quarters, and the effective transportation facilities for the plant personnel are necessary.
5. Availability Of Labors:
Labors will be needed for construction of the plant and its operation. Skilled construction workers will usually be brought in from outside the site, but there should be an adequate pool
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of unskilled labors available locally; and labors suitable for training to operate the plant. Skilled tradesmen will be needed for plant maintenance. Local trade union customs and restrictive practices will have to be considered when assessing the availability and suitability of the labors for recruitment and training.
6. Availability of Utilities:
The word “utilities” is generally used for the ancillary services needed in the operation of any production process. These services will normally be supplied from a central facility and includes Water, Fuel and Electricity which are briefly described as follows: Water: - The water is required for large industrial as well as general purposes, starting with
water for cooling, washing and steam generation. The plant therefore must be located
where a dependable water supply is available namely lakes, rivers, wells, seas. If the water
supply shows seasonal fluctuations, it’s desirable to construct a reservoir or to drill several
standby wells. The temperature, mineral content, slit and sand content, bacteriological
content, and cost for supply and purification treatment must also be considered when
choosing a water supply. De-mineralized water, from which all the minerals have been
removed, is used where pure water is needed for the process use, in boiler feed. Natural
and forced draft cooling towers are generally used to provide the cooling water required on
site.
Electricity: - Power and steam requirements are high in most industrial plants and fuel is
ordinarily required to supply these utilities. Power, fuel and steam are required for running
the various equipments like generators, motors, turbines, plant lightings and general use
and thus are considered, as one major factor is choice of plant site.
7. Environmental Impact And Effluent Disposal:
Facilities must be provided for the effective disposal of the effluent without any public nuisance. In choosing a plant site, the permissible tolerance levels for various effluents should be considered and attention should be given to potential requirements for additional waste treatment facilities. As all industrial processes produce waste products, full consideration must be given to the difficulties and coat of their disposal. The disposal of toxic and harmful effluents will be covered by local regulations, and the appropriate authorities must be consulted during the initial site survey to determine the standards that must be met.
8. Local Community Considerations:
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The proposed plant must fit in with and be acceptable to the local community. Full consideration must be given to the safe location of the plant so that it does not impose a significant additional risk to the community.
9. Climate:
Adverse climatic conditions at site will increase costs. Extremes of low temperatures will require the provision of additional insulation and special heating for equipment and piping. Similarly, excessive humidity and hot temperatures pose serious problems and must be considered for selecting a site for the plant. Stronger structures will be needed at locations subject to high wind loads or earthquakes.
10. Political And Strategic Considerations:
Capital grants, tax concessions, and other inducements are often given by governments to direct new investment to preferred locations; such as areas of high unemployment. The availability of such grants can be the overriding consideration in site selection.
11. Taxation And Legal Restrictions:
State and local tax rates on property income, unemployment insurance and similar items vary from one location to another. Similarly, local regulations on zoning, building codes, nuisance aspects and others facilities can have a major influence on the final choice of the plant site.
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Source: http://www.gsn.org/web/webproj/design/prjsite.htm
Factors in Evaluating Location Analysis
FACTORS CITED ISSUES1. Proximity to the market The target market of the company is the
people of the three cities namely: Cebu City, Mandaue City and Lapu-Lapu City which makes a good reason why it is beneficial to locate the company near them.
2. Proximity to the necessary materials Direct and indirect materials were being purchased within the country
3. Availability of the transported facilities The proposed site is in contiguity to maintain road, making it accessible for both public and private vehicles.
4. Adequacy of private and public
services
Other services such as power, water, fuel, and gas also exist in the area to support production and service.
5. Climatic conditions The tropical climate of the country is a good incentive for the manufacturing.
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Source: www3.interscience.wiley.com/journal/119556147
ALTERNATIVES SITES
Our target market is in the three cities namely: Lapu-Lapu City, Mandaue City and Cebu City. Considering the factors in locating the plant we comparatively analyze the chosen sites. The first location is in (A) A.S. Fortuna St. Mandaue City(1). The second alternative is in (B) Mactan Marina Mall, Lapu-Lapu City beside Save More (2). And the third one is in (C) Alang-Alang, Mandaue.
FACTORS WEIGHTSCORES (OUT OF 100) Weighted
A B C A B CSafetyand Security
20%85 83 80 17% 16.6% 16%
Parking Lot 5% 83 82 81 4.15% 4.1% 4.05%
Rental Fee 15% 84 83 82 12.6% 12.5% 12.3%
Proximity to its areas for service delivery
20% 85 82 88 17% 16.4% 17.6%
Proximity to its supplier
10% 87 86 85 8.7% 8.6% 8.5%
Office Space area 30% 89 86 85 26.7% 25.8% 25.5%
TOTAL 100% 513 502 501 86.15% 84% 83.95%
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Weighted mean of the Alternative sites
PLANT LAYOUT
Is the physical arrangement of equipment and facilities within a plant. The Plant Layout can be indicated on a floor plan showing the distances between different features of the plant. Optimizing the Layout of a Plant can improve productivity, safety and quality of Products. Unnecessary efforts of materials handling can be avoided when the Plant Layout is optimized.
This is valid for: - Distances Material has to move- Distances Equipment has to move- Distances Operators have to move- Types of Handling Equipment needed- Energy required to move items against resistance (i.e. gravity)
After the flow process diagrams are completed and before detailed piping, structural and electrical design can begin, the layout of process units in a plant and the equipment within these process unit must be planned. This layout can play an important part in determining construction and manufacturing costs, and thus must be planned carefully with attention being given to future problems that may arise. Thus the economic construction and efficient operation of a process unit will depend on how well the plant and equipment specified on the process flow sheet is laid out. The principal factors that are considered are listed below:
1. Economic considerations: construction and operating costs2. Process requirements3. Convenience of operation4. Convenience of maintenance5. Health and Safety considerations6. Future plant expansion7. Modular construction8. Waste disposal requirements
Source: http://www.hse.gov.uk/comah/sragtech/techmeasplantlay.htm
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Costs:
Adopting a layout that gives the shortest run of connecting pipe between equipment, and least amount of structural steel work can minimize the coat of construction. However, this will not necessarily be the best arrangement for operation and maintenance.
Process Requirements:
An example of the need to take into account process consideration is the need to elevate the base of columns to provide the necessary net positive suction head to a pump.
Convenience of Operation:
Equipment that needs to have frequent attention should be located convenient to the control room. Valves, sample points, and instruments should be located at convenient positions and heights. Sufficient working space and headroom must be provided to allow easy access to equipment.
Convenience of Maintenance:
Heat exchangers need to be sited so that the tube bundles can be easily withdrawn for cleaning and tube replacement. Vessels that require frequent replacement of catalyst or packing should be located on the out side of buildings. Equipment that requires dismantling for maintenance, such as compressors and large pumps, should be places under cover.
Health and Safety Considerations:
Blast walls may be needed to isolate potentially hazardous equipment, and confine the effects of an explosion. At least two escape routes for operators must be provided from each level in process buildings.
Future Plant Expansion:
Equipment should be located so that it can be conveniently tied in with any future expansion of the process. Space should be left on pipe alleys for future needs, and service pipes over-sized to allow for future requirements.
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Modular Construction:
In recent years there has been a move to assemble sections of plant at the plant manufacturer’s site. These modules will include the equipment, structural steel, piping and instrumentation. The modules are then transported to the plant site, by road or sea.
The advantages of modular construction are:
1. Improved quality control2. Reduced construction cost3. Less need for skilled labors on site
The disadvantages of modular construction are:
1. Higher design costs & more structural steel work2. More flanged constructions & possible problems with assembly, on site
General consideration:
Open, structural work, building are normally used for process equipment; closed buildings are only used for process operations that require protection from the weather.The ideal procedure for any plant is to build the layout around the production process and then design the building around the layout, thus achieving the plant that is completely functional. Plant layout embraces the physical layout of production facilities. Good plant layout provides regular movement of production, absence of bottleneck operations, and minimized backtracking all combine to shorten the manufacturing cycle and reduce the amount of material in process and also, the flow of people arrangements of employee facilities, aisles, plant entrances, and parking areas
Source: http://www.hse.gov.uk/comah/sragtech/techmeasplantlay.htm
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Goodies and Treats Plant Layout
Height of layout= 3 meters
Storage Room Capacity (Volume) = 13.08 cu.m (2m X 2.18m X 3m)
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Production Area Layout
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PRODUCT DESCRIPTION
A product description is a structured format of presenting information about a project product. Product description is usually created by the project manager and approved by the project board. A product is anything that can be offered to a market that might satisfy a want or need.
In this section a detail description of the proposed project is discussed in forms of its physical attributes, and its various uses.
1.) Physical Attributes
The proposed product has a brown color with a unique design. It’s often solid in individual packs. Below is a table showing physical attributes of the proposed product.
Phrase SolidColor brown shape Combination of spoon and fork designWeight 50 grams
Source: (http://en.wikipedia.org/wiki/Product_description)
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The Product
Product logo:
Packaging
Singles Pack
Dimensions:
L= 3.5’’
W= 6’’
H= 1.5’’
Quantity = 6 sporkies
Packaging Cost = Php1.25
Jumbo Pack
Dimensions:
L= 11’’
W= 12.5’’
H=3.5 ’’
Quantity = 12 Singles Pack
Packaging Cost= Php1.75
Deluxe
Dimensions:
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L= 33.5’’ or 2.79’ or 0.85m
W= 25.5’’ or 2.13’ or 0.65m
H= 11’’ or 0.92’ or 0.28m
V= 5.47cu. Ft or 0.15 cu. m
Quantity= 18 Jumbo Pack
Packaging Cost = Php50.00
Note:
Packaging for Singles and Jumbo Pack is outsourced from Ink Reprint
C/o Noel Arong 09212070079
Packaging for Deluxe is outsourced from Checha Marketing
Product Mold
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This is our representation of the product mold of Goodies and Treats Company in which the size of a spork is 3’’x 1’’. The over all mold size is 1 m x 1m which can occupy 200 slots for the sporkie mixture.
Dimensions of Mold Tray:
L= 1 meter; W= 1 meter; D= 2.54 cm / 0.0254 meter
Capacity: 200 pieces
RAW MATERIALS
Raw describes material that is in its natural unprocessed form, or has not had the final stages of processing. A raw material is something that is acted upon or used by or by human labor or industry, for use as a building material to create some product or structure.] Often the term is used to denote material that came from nature and is in an unprocessed or minimally processed state. (http://en.wikipedia.org/wiki/Raw_material).
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Description of Raw Materials
Raw Materials
Description
Lard Lard is one of the few edible oils with a relatively high smoke point, attributable to its high saturated fatty acids content. Pure lard is especially useful for cooking since it produces little smoke when heated and has a distinct taste when combined with other foods. Many chefs and bakers deem lard a superior cooking fat over shortening because of lard's range of applications and taste
Pork Lard Substitute (PLS) – is a specialty fat resembling the qualities of pork lard but practically free of cholesterol because of its vegetable origin. This is a premium lubricant in pastry crusts, soda crackers and other types of biscuits.
All purpose Flour
All-purpose is a type of flour that is suitable for all kinds of recipes. Also known as “plain,” “general purpose” or “family” flour, this kitchen cupboard staple is the main ingredient in our favorite baked goods such as cakes, cookies, breads and rolls.
EggsAn egg is a spheroid or ovoid shaped cell laid by females of many different species,
including birds, reptiles, amphibians, and fish. Eggs have been eaten by mankind for
millennia. Bird eggs (including chicken and turkey eggs) consist of a protective eggshell,
albumen (egg white), and vittles (egg yolk), contained within various thin membranes.
Egg yolks and whole eggs are a good source of protein and choline..
Sugar Sugar is an informal term for a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose [1] characterized by a sweet flavor. In food, sugar almost exclusively refers to sucrose, which primarily comes from sugar cane and sugar beet.
Vanilla Vanilla flavoring in food may be achieved by adding vanilla extract or by cooking vanilla pods in the liquid preparation. In this case, the pods' seeds are mixed into the preparation. Natural vanilla gives a brown or yellow color to preparations, depending on the concentration. Good quality vanilla has a strong aromatic flavor, but food with small amounts of low quality vanilla or artificial vanilla-like flavorings are far more common, since true vanilla is much more expensive.
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Oil Oil is used during brushing process in which it is spread out to the pan for preparation of baking so that it will be easy to remove baked cookies.
Source:
S
Source: http://en.wikipedia.org/wiki/Lard ; http://en.wikipedia.org/wiki/Sugar; http://en.wikipedia.org/wiki/Egg_(food); http://en.wikipedia.org/wiki/Vanilla
SUPPLIERS OF RAW MATERIAL
The proponents looked for the main raw materials that can readily and steadily supply the maximum ordered quantity to be used directly in production which are of good quality and condition. We consider them to order in bulk depending on the production capacity. All raw materials are bought locally.
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RAW MATERIAL SUPPLIER ADDRESS
LARD Ong King Kee Carbon Market, Cebu city
ALL PURPOSE FLOUR
General Milling Corporation Lapu-lapu, City
(+63917) 8208101
EGGS
Robina Farm
Tipolo Mandaue City
+632 395-1169
SUGAR
MakroMandaue City
(032)345-9540
VANILLA Makro Mandaue City
(032)345-9540
OIL Makro Mandaue City
(032)345-9540
1.) MACHINERIES, TOOLS AND EQUIPMENT
Description
Mixing Machine The Mixer is suitable for making mixing
And has a capacity of 6 to 8 liters.
Adjustable speed in Fast, Medium or
Slow speed. Reasonable rotating speed. Uniform Stirring
.5 kw and weighs 83 kgs.
¼ hp
Size: 0.56 x 0.56 x 0.83m
Chilling Machine This 10 cubic foot NSF Listed
Commercial chest freezer is perfect for storage of bulk
food items.
1/3 hp
Exterior dimensions are 42 1/8”W x 24”D x 36 3/8”H
(1.07 x 0.61 x 0.92m)
Portable Sealing machine Usage: It is suitable to pack loose, non-sticky powder and
granular materials in the fields of pharmacy, food industry,
agricultural chemical and daily chemical. Such as pellet,
monosodium glutamate, sugar, oatmeal, soup stuff, seeds,
coffee, cold instant drink etc.
Main technological parameter:
Filling Capacity: 1-280 ml
Electrical source: three phase four wire 380V ,50HZ
Total power: 4.5 W
Net Weight: 650 kg
Grinding Machine Specifications:
This Grinding Machine is suitable for grinding
coconuts, spices, herbs, chemical products, food
materials, and etc.
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Source:( http://xindagroup.en.alibaba.com/ ; ( http://chinashoemachine.en.alibaba.com/aboutus.html )
(http://www.alibaba.com/product- gs/203363730/High_Effective_and_Universal_Grinder_grinding.html)
MANPOWER REQUIREMENTS / MACHINE AND HEAD COUNT
Machine No. of workers required No. of machine to operate
Oven machine 1 2
Mixing Machine 1 4
Chilling Machine 0 1
Sealing Machine 1 1
Grinding Machine 1 1
Even if machineries used in the production are automated, manpower requirements are necessary to operate or to control them. This part will identify the number of workers involve in the creation of product within the production. Before operation will start, raw materials will undergo first a test and evaluation for quality assurance purposes.
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2.) Other Tools and Equipment
Tools Description
Mold A mold is pattern for a product to be made. It serves as a prototype for a product.
Air condition Aim to provide a suitable environment for a process being carried out, regardless of internal heat and humidity loads and external weather conditions. Although often in the comfort range, it is the needs of the process that determine conditions, not human preference.
Fire Extinguisher Fire extinguisher is an active fire protection device used to extinguish or control small fires, often in emergency situations. It is not intended for use on an out-of-control fire, such as one which has reached the ceiling, endangers the user or otherwise requires the expertise of a fire department.
Rubber Spatula A rubber spatula is a cooking tool that has a rubber head. The handle may be made of plastic, metal, or wood. It is common for these spatulas to be used when cooking with pots and pans that are easily scratched by metal utensils.
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3.Personal Protective Equipment
Equipment Description
Apron
Apron is used in a food entity to consider the cleanliness of the workers in making the product.Apron helps to provide orderliness of the worker.
Hand Gloves Gloves protect and comfort hands against cold or heat, damage by friction, abrasion or chemicals, and disease; or in turn to provide a guard for what a bare hand should not touch.
Hairnet A hairnet, or sometimes simply a net or caul, is a small, often elasticized, fine net worn over long hair to hold it in place. It is often worn by food service workers to prevent hair from contaminating the food.
Mask Mask is required to be worn regularly during mixing to avoid sneezing.
To protect from dust of the flour and other dust ingredients that create dust
Source: http://en.wikipedia.org/wiki/Apron
http://en.wikipedia.org/wiki/hairnet
http://en.wikipedia.org/wiki/mask
http://en.wikipedia.org/wiki/Glove#Mittens
4.) Material Handling and Delivery truck
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Tools and Equipment Description
Pushcart
Used to carry the materials from one place to another
Delivery truck
The delivery truck is used to transport or deliver products to the distributors and other intermediaries.
Source: http://en.wikipedia.org/wiki/pushcart
http://en.wikipedia.org/wiki/deliverytruck
5.) FURNITURES AND FIXTURES
Name Description
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Steel Table It refers to the table used in the food processing. Since the company is producing perishable products it will be difficult for the workers to clean it.
Exhaust Fan It is a type of fan installed in a ceiling of a building or a room; it is technically designed to suck out the hot air.
Utility Cabinet It is rectangular shaped furniture usually attached into a wall that is used for storage of miscellaneous items.
Lockers It is a storage compartment used to store personal materials or belongings to the employee.
Sink Is a bowl-shaped fixture that is used for washing hands or small objects.
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Mirror Used as to reflect the image that is being exposed to it. Mirrors are commonly used for personal grooming (in which case the old-fashioned term "looking-glass" can be used), decoration, and architecture.
Medicine Cabinet Usually made from wood but now it is made by synthetic. This is used to store all the medicines and others.
Office Table Office tables are designed to be used by the office employees.
Office ChairsThis is used also for office employees.
Computer TablesWhere the computers are placed.
Filing CabinetUsed to store important files, such as the appraisal forms and many other important files.
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Monobloc ChairsAre used by the workers in the production area.
Source: http://en.wikipedia.org/wiki/office equipment
6.) Storage:
Glass storage bin
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Four removable dividers provide adjustable compartments in this angled front acrylic bin display. The 24" wide display is made of 1/8" thick acrylic, and the 30" wide section is 3/16" acrylic. Measurements are: Compartment size" x H" x W" x D" (0.61x0.76xm)
Storage Racks
It is where trays are placed for cooling and is also used in the storage area to store boxes of finished products. Dimension: (0.9mx 4.5mx 3m for storage area); (0.6x1.8x3m for cooling area).
Source:http://www.fixturesgroup.com/content.php?parent=slatwall_acrylic_trays&type=products&parent_menu_name=Slatwall%20Acrylic%20Display%20Trays&title=Divided%20Acrylic%20Bin%20Display&product_id=703
7.) Measuring Apparatus
Measuring Cups
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Measuring Cup – used for measuring ingredients
1/4 Cup, 1/3 Cup, 1/2 Cup, 2/3 Cup, 3/4 Cup, and 1 Cup.
Measuring Spoon
1/4 tsp. (1.25ml), 1/2 tsp. (2.5ml), 1 tsp. (5.0 ml), 1 Tbsp. (15.0 ml)
Measuring Equipments
These equipments are used by the company’s chemist in order to formulate the right measure of ingredients to come up with a quality product
Source: http://www.homebrewunderground.com/equipment/
http://www.etsy.com/listing/46618123/vintage-tupperware-measuring-cups-set-of
http://barsupplies.com/measuring-spoons-p-549.html?osCsid=h6ggmmhmh1l4mfo97vm450sm32
http://www.hotplates.com/Kaiser-Bakeware-660554-KSR1388.htm
Manufacturing Process
Manufacturing processes are those that refer to the making of products by hand or with
machinery. Manufacturing processes use machines, tools and labor to make things for use or sale.
The term may refer to a range of human activity, from handicraft to high tech, but is most
commonly applied to industrial production, in which raw materials are transformed into finished
goods on a large scale. Such finished goods may be used for manufacturing other, more complex
products, such as household appliances or automobiles, or sold to wholesalers, who in turn sell
them to retailers, who then sell them to end users - the "consumers".
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Source: http://www.businessdictionary.com
The Process for Making Sporkie
Ingredients (1 bowl mixture):
½ Cup Lard
1 Cup Sugar
2 Eggs
2 Cups All-purpose flour
1 tsp. Vanilla
Process:
1. Preparation of raw materials.
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2. Pour Lard to mixing bowl.
3. Add sugar and eggs to the mixing bowl.
4. Mix ingredients for 10 minutes using the mixer.
5. Add All-purpose flour to the mixture and continue mixing for another 5 minutes.
6. Add vanilla to the mixture and continue mixing for another 5 minutes.
7. Brush oil on the molding pan.
8. Pour mixture to molding pan.
9. Place molding pan to the oven.
10. Bake for 15 minutes.
11. Remove the pan from the oven, transport to cooling area and let it cool for 10 minutes.
12. Remove cookies from pan.
13. Random sampling on the baked cookies will be done by quality control inspector.
14. Place the passed batch of cookies into the plastic trays.
15. Cover the plastic trays with plastic then seal.
16. Inspection will again be done on the packaging.
17. The passed products are placed into boxes; brought to the finished-goods inventory and
are ready for delivery.
Note: 1 bowl mixture can fill all 200 slots of one tray
Detailed Description of Manufacturing Process
Steps in making Sporkie
1. Preparation of the raw materials
All ingredients that are needed in the operation for making the product are prepared.
2. Mixing Ingredients
The different ingredients are mixed forming a mixture.
3. Brushing
After mixing, the oil is brush to the pan in order for the product not to stick to the mold.
4. Pouring
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The mixture of the ingredients is poured into the molding pan.
5. Baking
Baking starts after the pouring of mix ingredients in the mold pan. The Product is bake within 15 minutes at a normal baking temperature.
6. Cooling
The bake cookies are cooled within 10 minutes.
7. Testing
The batches of cookies are tested into the testing area before it will undergo to a final inspection and sealed.
8. Inspection
The Cookies are again inspected for quality assurance; it is manually done.
9. Packaging: The finish product (cookies) is packed into single packs, sealed, and covered
with a unique packaging design, before it will store and deliver to the distributor.
PROCESS FLOW CHART
PROCESS IN MAKING SPORKIE
Preparation of Raw materials
Mixing
Brushing
Pouring
Baking
Removing &Transporting
Cooling
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No
No
Analysis: Shown above are the sequences of processes in making Sporkies. There are 12 operations and 2 inspections with corresponding actions for decisions made.
PRODUCTION SCHEDULE
Assumptions
The Goodies and Treats Company considered holidays and special holidays as non-working. The following assumptions are replicated below.
Proponents assume that preparation of raw materials within 5 min.
There are approximately 365 days per year
There will be a six (6) working days in a week
According to Executive Order No. 203, which states that there are six (10) regular holidays
which the proponents adopted:
According also to Executive No. 203, there are two (2) special holidays that is observed in
the country which the proponent is based:
Regular Holidays
Removing
YesTesting
Packaging
Inspection
Storage/ Delivery
Grinding
Yes
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Regular Holidays Date
New Year’s day January 1
Maunday Thursday Movable
Good Friday Movable
Araw ng Kagitingan April 9
Labor Day May 1
Independence Day June 12
National Heroes Day Last Sunday of August
Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30
Special Holidays
Special Holidays Date
All Saint’s Day November 1
All souls Day November 2
Operation per year = 311 days
(Approximately 365 days/year – 12 non working days) – (48 Sundays in a year)
= 365 – 12 – 48
= 305 days
o Operation per week is 6 days
o Operation per month is 4 weeks
o Operation per day (M-F = 15 hours)(SAT= 10.5 hours)
o Morning duty hours =(7:00 am to 3:00 afternoon)
o Afternoon duty hours=(3:00 pm to 11 pm)
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SUMMARY OF OPERATIONS
GOODIES AND TREATS OPERATION PER YEAR 311 DAYS PER YEAR
OPERATION PER DAYS 7.5 HOURS
OPERATION PER WEEK 6 DAYS
OPERATION PER MONTH 4 WEEKS
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Source: http://www.lawphil.net/executive/execord/eo1987/eo_203_1987.html
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PRODUCTION SCHEDULE
(For Sporkie Making)
Processes
Time Consumption of Operation
(in sec,& minutes)
Preparation of raw materials
5 min
Mixing all ingredients 20 min
Brushing oil in the pan 20 sec
Pouring the mixture in a molding pan
5 min
Baking the cookies 15min
Removing of pan from oven and transporting to cooling area
1 min
Cooling the cookies 10 min
Removing the baked cookies from pan
1 min
Testing cookies 3 min
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Packaging and storing 5 min
Inspection of cookies 5 min
LEGEND: Color Coding of processes
TOTAL COMPLETION TIME: 1 hr. and 20 sec.
Analysis:
The production schedule above describes the different processes or operations involved in the entire manufacturing processes of a certain lines of the product, its start from the preparation of the raw materials up to the finished products that are ready for distribution. It is also shown there the estimated time to complete every process in producing the product. It takes an estimated time to complete the cycle at 1 hr. and 20 sec., time completion of our proposed product. We consider a 5 min. preparation of the raw materials from storage area going to the production area.
5 min 20 min 20 sec 5 min 15 min 5min
1 min 3 min 5 min
5 min
10 min1min
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FLOW PROCESS CHART OF GOODIES AND TREATS COMPANY
PROCESS TIME DESCRIPTION CHART SYMBOL
Preparation of raw materials
5 min. Preparing all the raw materials needed in the production.
Mixing all ingredients
20 min.
Mixing the ingredient necessary for the operation
Brushing 20 sec. Brushing oil to the pan
Pouring 5 min. Pouring the mixture in a molding pan
Baking the cookies
15 min.
Baking cookies in the oven
Removing and transporting
1 min. Removing the baked cookies while transporting in cooling area
Cooling the cookieS
10 min.
Transporting cookies while cooling
Removing the pan
1 min. Remove the baked cookies
Testing cookies
3 min. Batched cookies are being tested by inspector
Packaging and Storage
5 min. Packaging of finished goods
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Inspection of cookies
5 min. Final inspection
Summary of Flow Process Chart:
Process Summary of Activities Time
OPERATION 9 54 min 20 sec
OPERATION WHILE TRANSPORTATION
1 1min
INSPECTION 1 5 min
DELAY 0 0
STORAGE 0 0
TOTAL 11 1 hr. 20 sec
Analysis:
This flow process chart shows the sequence of processes intended with its corresponding time consumed in order to finish the operation. The summary of the flow process indicates the different activities with its corresponding time. The total activities involve in the process is 11 and the total process time allocated to finish a product is 1 hr. 20 sec.
INVENTORY AND PROCUREMENT SCHEDULE
Vanilla Extract
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Lard
2R34
Eggs
On the 1st procurement, stock 56.52kg M T W TH F SAT
Daily Consumption 9.42 9.42 9.42 9.42 9.42 9.42
Remaining Stock 28.26
2nd procurement 28.26
Remaining Stock (2nd week) 18.84
3rd procurement 28.26
4th procurement 28.26
On the 1st procurement, stock 2,262pcs M T W TH F SAT
Daily Consumption 377 377 377 377 377 377
Remaining Stock 1,131
2nd procurement 1,131
Remaining Stock (2nd week) 754
3rd procurement 1,131
4th procurement 1,131
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Flour
On the 1st procurement, stock 112.98kg M T W TH F SAT
Daily Consumption 18.83 18.83 18.83 18.83 18.83 18.83
Remaining Stock 56.49
2nd procurement 56.49
Remaining Stock (2nd week) 37.66
3rd procurement 56.49
4th procurement 56.49
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FIFO (First in First out) Method is used by the company to manage its raw material inventory because the raw materials (ingredients) should not be stored for a long period of time because the production of the company’s product requires fresh ingredients.
SAFETY PROGRAMS
Management should watch closely the number of minor injuries because an increase in that
number means an increase in the injurious contacts employees are having with objects in their
environment. Naturally, as the number of injuries increase, the probability of the injuries
becoming more serious increases too. It should be prevented.
Goodies and Treats Company sets its own standards regarding safety practices. The workers
must be aware about safety procedures of the company and the uses of the safety equipment
through undergoing training before they begin to work as regular employees.
All workers are provided with the safety protective equipment particularly hand gloves, first aid
kit for emergency use in case of accidents and appropriate inspection of work place ventilation
and illumination in the work area.
A safety manual that covers all procedures all the safety procedures, the rules and regulations in
the company are provided and it is strictly implemented. In cases of serious physical harm, it
should be reported to the supervisor for immediate care and investigation of accidents.
It should have accident investigation in order to discover the point of failure or practices so that
proper action can be taken to prevent recurrence.
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Location of Fire Extinguishers and Direction to Fire Exits
Fire Extinguisher Placement Requirements
You have probably noticed fire extinguishers in places where you shop, work or eat, but not thought too much about them. It might surprise you to know that Occupational Safety and Health Administration (OSHA) has certain regulations that determine what type of fire extinguishers a business must have, as well as requirements for their placement or travel distance from a potential fire source.
Class A
The Class A fire extinguisher is perhaps one of the more common fire extinguishers found in the workplace. Used for fires involving items made of wood, paper, plastic or textiles, the Class A is recognized by the letter "A" inside a triangle on the extinguisher, and if the symbol is in color, the triangle will be green. It uses a combination of dry chemicals to extinguish fires. The Class A fire extinguisher placement requirement is 75 feet or less.Class B
The Class B fire extinguisher is commonly found in places where oil, gasoline or flammable liquids may be located. A Class B is identified by a square symbol containing the letter "B," and if in color, this square will be red. The Class B puts out fires by using a process that keeps the fire from getting oxygen and stops the release of combustible vapors that may feed the fire. The Class B fire extinguisher placement requirement is 50 feet or less. Class C
The Class C fire extinguisher is used in places where there is the possibility of a live electrical equipment fire. The Class C contains agents that are not conductive to electricity and is used to de-energize the electrical component. Once this is accomplished, a Class A or Class B fire extinguisher is then used to control the rest of the fire. The Class C is identified by a circle with the letter "C" inside. If in color, the circle will be blue. The Class C fire extinguisher is placed in conjunction with whatever the other Class A or Class B fire extinguisher placements are for that particular area.
Class D
The Class D is a more specialized type of fire extinguisher. Used for putting out fires involving combustible metals, such as sodium, magnesium and titanium, the Class D uses an agent that does not react with these types of metals. The Class D is identified by a five-point star with the letter "D" inside. If the star is in color, it will be yellow. The Class D fire extinguisher placement is 75 feet or less.
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Class K
Class K is a fire extinguisher used to put out oil and grease fires that can occur in establishments that do commercial cooking. Class K contains an alkaline mixture with a potassium agent that when combined with the fatty acid of oil or grease creates soapy foam. This mixture traps the vapor and steam and smothers the fire. Class K is identified by the letter "K." There is no specified placement for a Class K fire extinguisher, but it is usually recommended that it be located near where possible fires could ignite. Local governments, however, may have their own set of fire codes, so it is advisable to find out about any type of building regulations by talking to the local fire marshal.
Analysis:
Basing from the fire extinguisher placement requirements, Goodies and Treats Company belongs to the Class K category according to the OSHA standards.
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MAINTENANCE PROGRAMS
The company provides a regular maintenance on the plant. The equipments that the company
acquired should be checked once a month to ensure the conditions and anticipate the
breakdowns that may result to costly delays and might interrupt production operation.
Workers are required to take good care of their equipments and tools to prevent damages and
accidents. Tools must be kept clean after using. Equipments must be checked before and after
using.
The production in-charge should closely monitor all the machines in order to prevent
interruptions.
QUALITY CONTROL PROGRAM
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The purpose of quality control program is to ensure that the product produced is of good
quality.
Quality inspection of the product is administered after the mixing process. The inspector
checks the viscosity by visual inspection. After the packaging operation the products will be
weighed and checked whether it conforms to the standard weight. Non conformities will
serve as rejects and will be transported back to the mixing machine if it needs enough flour
to be added to the patty.
The company will ensure that the quality of the product it produces is built which means
that every personnel must be responsible enough in maintaining the good quality of the
products by inspecting the quality of the raw materials used.
Checking of the equipment used if it is capable of producing quality product and ensuring
that all members know the expected work quality and are always qualified to achieve them.
STANDARD PROCEDURE FOR TESTING THE STRENGTH OF THE PRODUCT
1. Place the spoon on the center so that the two blocks would support the spoon.
2. Hang or suspend masses (force of breaking point) on the center of the spoon.
3. If spork will sustain for 10 seconds, it is a pass.
ATTRIBUTE ACCEPT REJECT
1. Texture Smooth rough, coarse
2. Size/Shape 3’’X 1’’ (maximum allowance of 0.5”), Spork shape
Greater or lesser from the accepted, broken, cracked
3. Strength Can withstand 4kg load Can not withstand 4kg load
4. Taste Sweet, delicious, tasty and crunchy
Salty, Sour, Bitter, awful taste
5. Packaging Without damages Damaged (torn, scratched, not well sealed, etc.)
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4. If spork breaks, it is a fail
m=500g = .5kg g=9.81 m/s^2 F=mg F=4kg*9.81m/s^2
F=39.24Newton = 40Newton (force produced in strength quality control test)
Note: Breaking an egg shell requires 30 Newton of force
With the given fact, a force of 40 Newton can be applied in order to test the strength of the product. The proponents are only after of the minimum strength. In handling spoon and fork, lateral pinch is used. In lateral pinch, thumb opposes the side of the index finger. It produces a maximal strength of 9.0 kg and minimal strength of 4.0 kg.
Source: http://www.thepoultrysite.com/articles/979/maintaining-egg-shell-quality;
Source: http://www.rehab.research.va.gov/jour/70/7/2/swanson.pdf; Niebel, Methods, Standards, and Work design -11th ed. p. 214
PRODUCTION FACILITIES
The employees are provided all the comfort that the company has to offer. There are
appropriate ventilations, enough lighting, comfort rooms, locker room. Ergonomically designed
working tables and lockers for the employees are purposely installed.
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The production area has a sufficient lighting and good ventilation. The noise level of the factory
in the production area is in tolerable limit. The production area is absolutely a no smoking zone
because the company manufactures food.
Along with this several factors, should also be given quite considerations such as the vibration of
the operating machines, noise caused during machine operations, heat factor and the like. If
properly, implemented, disruption of work can be possibly minimized and can be further
eliminated.
The storage area will be having the usual room temperature, materials are intended to stay 1
week in the storage area it is because the production has 1 week inventory prior to the
production.
Capacity Computation
Time
1st Process
No. of output
2nd Process
No. of output
3rd Process
No. of output
7:00am 0 0 0
7:05am 1 0 0
7:25am 4 1 0
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7:45am 4 4 1
8:05am 4 4 4
8:25am 4 4 4
8:45am 4 4 4
11:00pm 4 4 4
Where;
Production hour = (M-F=7.5 hrs.)(SAT. =5.25hrs.)
No. of Shifts = 2 shifts
Total production hours = (M-F 15 hrs.)(SAT. =10.5hrs.)
1,600 baked cookie for every 20 minutes
Oven can occupy 2 trays
Trays have 200 slots
1 pack contains 6 cookies
5 min 20 min 20min
X 4 machine 2 oven = 4 trays
4traysx200slots=800 cookies/20mins
1st process = 5 min; 2nd process = 20 min
12 Batches of cookies produce per hour
1 3 2
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36,000 cookies produce in 1 working day or 6,000 packs of Sporkies are produced in a
day (100% Efficiency Level)
The company assumes a 90% efficiency level during its first year of operation because
the company adapts a semi-automated process thus, producing 5,400 packs of Sporkies
are produced in a day from Monday – Friday (257 days per year)
3,780 packs are produced during Saturdays (48 days per year)
Within a week 30,780 packs of Sporkies are produced
Within a year, 1,477,440 packs of Sporkies are supplied in the market
Proponents assume that efficiency increases by 2% per year
All cookies baked should be packed within the day it was produced
Delivery sessions are done trice in a week:
o Monday morning (Quantity Delivered: First Week: ; Second Week: )
o Wednesday morning (Quantity Delivered: packs)
o Friday morning (Quantity Delivered: packs)
o Frequency of delivery per session is trice (3) times
There is 5.26% or 1,620 packs level of inventory left every week
Mon Tue Wed Thu Fri Sat
Packs Produced 5,400 packs
5,400 packs 5,400 packs 5,400 packs 5,400 packs 3,780 packs
Total Output (2 Days Operation)
10,800 packs 10,800 packs 9,180 packs
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Add: Quantity left in inventory (packs)
First Week: 0
Second Week: 1,620 packs
1,620 packs 1,620 packs
Sum First Week: 10,800 packs
Second Week: 12,420 packs
12,420 packs 10,800 packs
Less: Quantity to be delivered (packs)
First Week: 9,180 packs
Second Week: 10,800 packs
10,800 packs 9,180 packs
Total Quantity left in inventory
1,620 packs 1,620 packs 1,620 packs
Analysis:
On the first day of production (Monday), 5,400 packs of Sporkies are produced. The same output is produced on the next day. All units produced are stored in the stockroom. On the morning of the third day, 9,180 packs will be delivered, leaving 1,620 packs in the stockroom. These units are added to the output produced on the third and fourth day of operation which is delivered on the morning of the fifth day. An increase of 1,620 packs will be delivered on the fifth day in which total number of packs to be delivered is 10,800 packs. Outputs on the fifth and sixth day of operation will be delivered on the next week (Monday). The number of packs to be delivered on that day is 10,800 packs. There is an increase of 1,620 packs that will be delivered on Wednesday in order to maintain the level of inventory. A level of 5.26% or 1,620 packs is maintained in the inventory.
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Conclusion:
The technical aspect of the study is one important factor in a business which indicates the flow of processes, operations, and maintenance and other factor consider in this aspect in order to come up with a quality product like our proposed product. In the technicality in operating our proposed product, we come up that it is feasible enough to run the business because of well-maintained and well-managed operation.
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CHAPTER III
MANAGEMENT ASPECT
SCOPE OF MANAGEMENT ASPECT
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INTRODUCTION
MAJOR ASSUMPTIONS
HISTORICAL ACCOUNT
VISION, MISSION AND GOALS
TITLE OF THE PROPOSED PROJECT
NAME OF THE COMPANY
BUSINESS LOCATION
PROPONENTS OF THE STUDY
FORMS OF OWNERSHIP
TYPE OF ORGANIZATION
ORGANIZATIONAL STRUCTURE
PRE-OPERATING ACTIVITIES
PERSONNEL PLANTILLA
COMPENSATION SCHEME
COMPANY POLICIES
PERFORMANCE APPRAISAL
WASTE MANAGEMENT
Introduction
Management refers to the group of individuals who make decisions about how a business is run. It is the process of coordinating and integrating work activities so that they are completed
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efficiently and effectively with and through other people. Management also defined as the “creative problem solving-process of planning, organizing, leading, and controlling an organization’s resources to achieve its mission and objectives. It involves planning, organizing, leading and controlling which are done by managers. Planning refers to defining goals, establishing strategy, and developing plans to coordinate activities. According to Nickels, planning refers also to “management function that involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives.” Aldag and Stearns, on the other hand, define planning as “the selection and sequential ordering of tasks required to achieve an organizational goal.” Planning, according to Cole and Hamilton is “deciding what will be done, who will do it, where, when and how it will be done, and the standards to which it will be done.” Organizing is a management function which refers to ‘the structuring of resources and activities to accomplish objectives in an efficient and effective manner.” It is undertaken to facilitate the implementation of plans. It includes determining what tasks are to be done, who is to do them, how tasks are to be grouped, who reports to whom, and where decisions are to be made. Leading is that management function which “involves influencing others to engage in the work behaviors necessary to reach organizational goals.” Leading involves motivating subordinates, directing others, selecting the most effective communication channel, and resolving conflicts. Finally, Controlling refers to the “process of ascertaining whether organizational objectives have been achieved; if not, why not; and determining what activities should then to be taken to achieve objectives better in the future. It is one of the main functions of management. It comes after planning, organizing, and directing. Controlling includes monitoring activities to ensure that they are being accomplished as planned and correcting any significant deviations.
Source: (investorwords, management.com)
Major Assumptions
The proponents adopt partnership as their form of business ownership
There is an expected increase of 2% in employees’ compensation every year
Hire qualified employees
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Top and middle management salaries are based on position
Communication program involves memo for the top management down to the rank and file
that will be posted to the bulletin board. Suggestion box is also provided
The proponents will vote for the position of General manager who serve for a 5 year period
The proponents are capable of managing the manufacturing firm
The proponents based the salaries in Salaries and Wages of the Philippines
Benefits and privileges are SSS, Phil health and PAG-IBIG
The company provides uniform, and protective wear for the employees
Historical Account
7th Century A.D. - The earliest cookie-style cakes are thought to date back to 7 th century Persia A.D. (now Iran), one of the first countries to cultivate sugar (luxurious cakes and pastries in large and small versions were well known in the Persian Empire). According to historians, sugar originated either in the lowlands of Bengal or elsewhere in Southeast Asia. Sugar spread to Persia and then to the Eastern Mediterranean. With the Muslim invasion of Spain, then the Crusades and the developing spice trade, the cooking techniques and ingredients of Arabia
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spread into Northern Europe. By the end of the 14th century, one could buy little filled wafers on the streets of Paris. Renaissance cookbooks were rich in cookie recipes.
1937 - The first chocolate chip cookies was invented in 1937 by Ruth Graves Wakefield (1905-1977), of Whitman, Massachusetts, who ran the Toll House Restaurant. The Toll House Restaurant site was once a real toll house built in 1709, where stage coach passengers ate a meal while horses were changed and a toll was taken for use of the highway between Boston and New Bedford, a prosperous whaling town. The Wakefields sold the restaurant in 1966. It burned down on New Year’s Eve in 1984. One of Ruth's favorite recipes was an old recipe for "Butter Drop Do" cookies that dated back to colonial times. The recipe called for the use of baker's chocolate. One day Ruth found herself without a needed ingredient. Having a bar of semisweet chocolate on hand, she chopped it into pieces and stirred the chunks of chocolate into the cookie dough. She assumed that the chocolate would melt and spread throughout each cookie. Instead the chocolate bits held their shape and created a sensation. She called her new creation the Toll House Crunch Cookies. The Toll House Crunch Cookies became very popular with guests at the inn, and soon her recipe was published in a Boston newspaper, as well as other papers in the New England area. Word of the cookie spread and it became popular.
1939 - This cookie became known nationally when Betty Crocker used it in her radio series on "Famous Foods from Famous Eating Places." Ruth approached the Nestle Company and together, they reached an agreement that allowed Nestle to print what would become the Toll House Cookie recipe on the wrapper of the Semi-Sweet Chocolate Bar. The company developed a scored semisweet chocolate bar with a small cutting implement so that making the chocolate chunks would be easier. According to the story, part of this agreement included supplying Ruth with all of the chocolate she could use to make her delicious cookies for the rest of her life.
1940s - Ruth sold all legal rights to the use of the Toll House trademark to Nestle. On August 25, 1983, the Nestle Company lost its exclusive right to the trademark in federal court. Toll house is now a descriptive term for a cookie.
1997 - A third grade class from Somerset, Massachusetts proposed that the chocolate chip cookie be designated the official cookie of the Commonwealth. The chocolate chip cookie was designated the official cookie of the Commonwealth on July 9, 1997 under the General Laws of Massachusetts.
1996, 1999, and 2003 – A group of fourth-grade students at Caln Elementary School in Coatesville introduced a resolution to designate the chocolate chip cookie as the official state cookie of the Commonwealth of Pennsylvania in 1996. Senate Bill 271 was introduced on February 1, 1999 to designate and adopt the chocolate chip cookie as the official cookie of the Commonwealth of Pennsylvania. The House is supporting the Nazareth sugar cookie, in a bill sponsored by eight representatives, including Moon Township's state Rep. and Senator-elect John Pippy. Another Senate Bill 320 was introduced by Thompson, Helfrick, M. White, Greenleaf, Rafferty, and C. Williams on February 13, 2003 to designate and adopt the chocolate chip cookie
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as the official cookie of the Commonwealth of Pennsylvania. The House and Senate have been in disagreement or debate since these bills were introduced. The bills have been tabled.
Source: http://en.wikipedia.org/wiki/historyofcookies
Vision, Mission, Objectives and Values
Vision:
Goodies and Treats Company aims to promote innovative design in cookies; extents nutritional value, and create products at maximum quality that exceeds customer satisfaction and dream to be the leading snack (for cookies in snack industry) manufacturer in the world.
Mission:
“As an inspired business organization, Goodies and Treats Company offers high quality, environment-friendly and nutritional products while continually improving employee morale and safety”.
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Objectives:
To introduce a new innovative product into the market
To optimize the benefits of using unique design in cookies
To make a product that is nutritious and environmental-friendly
To offer a reasonable price for every product manufactured
To give excellent satisfaction to the customer
To be recognized as a leading supplier of innovative cookies
To develop good relationship with customer and supplier
Values:
In achieving company’s vision and mission, the company will be guided by its core values of integrity, customer and market focus, teamwork and respect for the individual, a strong competitive spirit and a passion for excellence.
Title of the Project
A. Feasibility Study on Edible Spoon and Fork made from Cookies
The proponents decided to conduct this particular study to bring a new and interesting product to the market. The proposed product is a combination of a snack and a utensil. The product’s primary purpose is to satisfy the consumers’ need for snacks. With its unique design that can be used as a utensil, it becomes a very interesting product. At present, there is no snack in the market (Philippines) that has the same characteristics with the proposed product.
The proponents gathered information needed for the study through survey using questionnaires, interviews, libraries, internet researches and actual visit on government agencies. The proponents randomly selected the respondents of the survey particularly the people living in the City of Lapu-lapu, Mandaue and Cebu since it is the target test market.
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Name of the Company
The business name is very important factor because it recognizes the company’s existence. The proponents came up with the business name “Goodies and Treats Company” because of the business field where we want to venture, which is the snacks industry. The proponents find the company name right for the chosen field of industry.
The Company Logo:
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Goodies and Treats Company
The company logo is simple yet it shows the creativity and the youthfulness of the company as a new business entity. Bright colors have been used to catch customers’ attention in order for them to know that the company exists. There is an icon of a shopping cart; it shows that the company wants that in every shopping cart that the customer fills, it should contain goodies and treats in it.
Business Location
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Goodies and Treats Company is located at A.S Fortuna St. Mandaue City. The location is near by the National Highway in which it is very accessible to any land transportation vehicle.
PROPONENTS OF THE PROJECT
NAME AGE CONTACT INFO. INVESTMENT
ALVIN T. BARING
20
09339536271
1,700,000.00 PHP.
FREND E. CABAHUG
20
09235591730
1,700,000.00 PHP.
RAOUL JULIUS BASCON
20
09339480457
1,700,000.00 PHP.
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FORMS OF OWNERSHIP
The company’s success depends on the people behind it, as businessman, it is very important that we know the importance of knowledge on the field of business, choosing the best forms of ownership really counts a lot.
The company chooses partnership as a form of ownership, since partnership is a type of business entity that could be as easily formed as the single proprietorship. More persons can conduct the business and handle its problem. It has access to greater or better credit facilities and can combine ability and resources of partners which can be a source of strength. However, partnership can also lead to a delay and difficulties of some disagreement between partners occur.
TYPE OF ORGANIZATION
Before the commencement of activities, the decision-makers in an organization will have to decide on what structure to adapt. Depending on the size and type of operations, a certain structural type may best fit the requirements.
The proponents agreed to choose Functional Organization because this form of departmentalization engaged in one functional activity, such as engineering or marketing, is grouped into one unit. Functional organization structures are very effective in smaller firms, especially single-business firms where key activities revolve around well-defined skills and areas of specialization.
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Analysis:
Functional organization structures are very effective in smaller firms, especially single-business firms where key activities revolve around well-defined skills and areas of specialization.
Functional Organizations have certain advantages which can apply to our status of business:
1. The groupings of employees who perform a common task permit economies of scale
and efficient resource use.
2. Since the chain of command converges at the top of the organization, decision-making is
centralized, providing a unified direction from the top.
3. Communication and coordination among employees within each department are
excellent.
4. The structure promotes high-quality technical problem-solving
5. The organization is provided with in depth skill specialization and development.
6. Employees are provided with career progress within functional departments.
The proponents of Goodies and Treats Company chose functional type of organizational structure. As what we can see, all department in-charge are under supervision of the General Manager. They are entitled to report documents directly to the Plant Manager. Some department in-charge has subordinates. The total number of direct employees that the company has is 23 including top management and 3 for indirect employees.
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Goodies and Treats Company
Organizational Chart
Effective as of July, 2010
General Manager (1)
Quality Control In-charge (2)
HR In-charge (1)
Research and Development In-charge (1)
Production In-charge (2)
Marketing & Purchasing In-
charge (1)
Accounting In-charge (1)
Driver (1)
Driver
Utility (1)
Production Workers (8)
Maintenance (1)
Security (2)
Sales & Marketing Agent (1)
Statistics:
Direct Employee: 20
Indirect (Agency): 3
Total :23
Approved by: General Manager
Legend:
=Indirect Employee (Agency)
=Direct Employee
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PRE-0PERATING ACTIVITIES:
TasksStart Date Duration(days) End Date
PROJECT PLANNING 1-Feb 18 25-FebCAPITAL ACQUISITION 7-Feb 10 18-FebOBTAINING PLANT SITE 21-Feb 5 25-FebSECURING PERMITS AND LICENSES 28-Feb 15 18-MarEQPT. AND MACHINES ACQUSITION 18-Feb 30 1-AprOFFICE SUPPLIES, TOOLS AND EQPT. ACQUISITION 7-Mar 15 25-MarINSTALLATION OF TOOLS AND MACHINES SET UP 14-Mar 15 8-AprHIRING AND TRAINING 7-Mar 24 1-AprINITIAL OPERATION 2-Apr 13 15-Apr
DESCRIPTION FEBRUARY MARCH APRIL
1-Feb 6-Feb11-Feb
16-Feb
21-Feb
26-Feb 3-Mar 8-Mar
13-Mar
18-Mar
23-Mar
28-Mar 2-Apr 7-Apr
12-Apr
PROJECT PLANNING
CAPITAL ACQUISITION
OBTAINING PLANT SITE
SECURING PERMITS AND LICENSES
EQPT. AND MACHINES ACQUSITION
OFFICE SUPPLIES, TOOLS AND EQPT. ACQUISITION
INSTALLATION OF TOOLS AND MACHINES SET UP
HIRING AND TRAINING
INITIAL OPERATION
Shown above are the pre-operating activities that the company would do in order to prepare for the actual preparation. Pre-operating activities would take 2 months and 2 weeks to be completed according to the schedule plotted by the proponents.
Job description and Qualifications
Position Job Description Job Qualifications
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General Manager
The general manager oversees all access in the business including:Marketing, accounting, production, maintenance and workers.
At least 2 years of managerial experience in a food industry
Preferably a graduate of any Business course, preferably (BSMA, BSA)
Highly Skilled in the field of general management
Sales oriented Fluent in spoken and written
EnglishResearch and DevelopmentIn- charge
Responsible for developing, applying, revising and researching quality standards products
Conduct qualitative and quantitative and chemical analyses or chemical experiments in laboratory for quality or process control or to develop new products or knowledge
25-35 years old, male or female
Preferably licensed chemist At least 3 years experience in
quality control offices specially in chemical industry/food entity
Computer literate and with good communication skills.
Can work with minimum supervision
HRIn-charge
Responsibilities of recruiting and staffing logistics, performance management and improvement systems, organizational development employee orientation, development and training, policy development and documentation, employee relations, compensation and benefits administration
Preferably 1-3 years HR experience in a high volume, fast-paced customer support center environment
Graduate of Industrial Psychology
Proficient in the use of MS Office and the internet
Excellent Communication and interpersonal skills
Must possess excellent presentation, writing and analytical skills
Able to start work immediately
Quality ControlIn-charge
Responsible for controlling, and inspecting the quality of product in terms of quality, packaging, strength
Bachelor's degree - BSc.Food science& technology
Open for MALE/FEMALE, at least 24 years old;
1 -2 years experience working in the Quality Control Department of a Food Manufacturing Company in the capacity of QC Inspectors, Laboratory Analyst or Quality
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Assurance Specialist. Proficient in problem-solving,
analytical and has a good communication skill; Computer literate (MS Office).
ProductionIn-Charge
Responsible for production planning and execution throughout the product life-cycle
Male/Female, 25-40 years of age
Industrial Engineering graduate or any related course
With 2 to 5 years working experience in handling production preferably in a food industry
Extensive experience in maintenance program
Can work with minimum supervision
Marketing and PurchasingIn-charge
To carry out all assigned marketing functions in order to:
1. To achieve premium growth target
2. To provide an effective and effective and efficient sales service to customers
3. Create designs and conceptualizes marketing strategies and events that will help increase the sales
Responsible for purchasing, and procurement of materials.
Responsible for monitoring of the level of inventory.
Canvassing of materials Responsible for establishing good
relations with suppliers
Male/Female applicants not more than 30 years of age.
Preferably graduate of any business courses.
Aggressive, independent minded, honest and hard working with positive working attitude
Systematic, organized, team player and result-oriented
Can work with minimum supervision.
Sales oriented Good communication skills
both oral and written
AccountingIn-charge
Collection, summarization, and reporting of financial information about various decision centers (responsibility centers) throughout
A well trained and experienced graduate of BSA
25-35 years old
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the company. It traces costs, revenues, or profits. Responsible for making decisions
about the costs, revenues, or profits in question and taking action about them.
3-4 years experience
Detail-oriented, efficient and organized professional with extensive experience in accounting systems.
Possess strong analytical and problem solving skills, with the ability to make well thought out decisions.
Excellent written and verbal communication skills.
Highly trustworthy, discreet and ethical.
Utility Responsible for maintaining the cleanliness and orderliness in the company
Responsible for odd or all-around jobs
One who runs errands
A high-school graduate Hardworking, patient and
responsible
Driver Responsible for delivering and transporting raw materials and finished product
Respond to customer service
Vocational graduate or college level
Can work with minimum supervision
Knows how to drive trucks and any vehicle
With experience in drivingSecurity (indirect hiring from agencies)
Security personnel enforce company rules and can act to protect lives and property
perform access control at building entrances and vehicle gates; meaning, they ensure that employees and visitors display proper passes or identificationbefore entering the facility
Excellent communication, motivational, interpersonal, and presentation skills.
Excellent leader with a firm but fair attitude and a reputation for honesty, integrity, and loyalty.
Outstanding expertise of police and security procedures.
Maintenance and Technician (indirect hiring)
Perform routine to skilled manual and maintenance work with industrial equipment, water, electricity, buildings, grounds and
Must have an extensive knowledge in mechanical, electrical and maintenance
Male, preferably graduate of
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park, and performs related duties as required
any engineering course at least 1 year experience
Production Workers
The workers will do the operations( mix, bake, do packaging work) of the equipment as well as the machines; it is their responsibility to work hard everyday
A Degree or Associate in Hotel Restaurant Management
Male/Female. 18 to 25 years old
With working experience in any food entity
Sales and Marketing Agent
Responsible for promotions and selling of goods
Responsible for giving the information about the product to the customer
Determine complaints and claims of the customer.
Establish relation to intermediaries and retailers
Male/Female 22-35 years of age With pleasing personality With a Degree of any
business related course Excellent in communication
skills both oral and written
JOB DESCRIPTION REFERENCE
Goodies and Treats Company JD -001
Mandaue City, Cebu, Philippines
JOB DESCRIPTION
Position Title/Job Title : Date hired: ________________
Incumbent : Compensation Level : _______________
Reports to : Employment Status: __________________
Department Assigned : Employee No. : __________________
No. of Subordinates : ________________
Last job preference evaluation: __________________
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Over-AllJob Responsibility:______________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Detailed Job Functions:
1. ________________________________________________________________________
2. ________________________________________________________________________
3. ________________________________________________________________________
4. Until Last No. Accepts the job/task that may be assigned to the me
Acknowledge by: _______________ Approved by : __________________
Incumbent : _________________ Immediate supervisor : ___________
Date : _________________ Date : ___________
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Personnel Plantilla
Salaries and Wages
Position No. of Employees
Rate / Day Monthly Salary Range
(Salary good for)
Annual Salary
General Manager 1 1,000.00 30,000.00 PHP. 3-5 yrs 360,000.00
Research and Development
In- charge
1 400.00 12,000.00 3-5 yrs 144,000.00
Human Resources
In -charge
1 400.00 12,000.00 3-5 yrs 144,000.00
Quality Control
In-charge
2 400.00 12,000.00 3-5 yrs 144,000.00
Production In-charge 2 400.00 12,000.00 3-5 yrs 144,000.00
Marketing and Purchasing
In-charge
1 400.00 12,000.00 3-5 yrs 144,000.00
Accounting In-charge 1 400.00 12,000.00 3-5 yrs 144,000.00
Driver 1 300.00 9,000.00 3-5 yrs 108,000.00
Utility 2 285.00 8,550.00 3-5 yrs 102,600.00
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Production Worker 8 285.00 8,550.00 3-5 yrs 102,600.00
Sales and Marketing Agent 1 285.00 8,550.00 3-5 yrs 102,600.00
Totals 20
Total Amount Php. 4,555.00 Php. 136,650.00 Php. 1,639,800.00
Position
(agency Hired on-call basis)
Security 1 285.00 8,550.00 3-5 yrs 102,600.00
Maintenance 1 285.00 8,550.00 3-5 yrs 102,600.00
Total 2
Total amount Php.570.00 Php.570.00 Php.205,200.00
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Analysis:
The table shows the total number of directly hired employees of Goodies and Treats Company which is 20, while 2 of the employees are indirect in which it is come from agency in on-call basis, the over-all total is 22. Their salary is based on their job position within the organizational chart, together with their respective rate per day, monthly rate, and annual rate. There is a range of 3-5 yrs for the salary of employees in which their salary is subjected to increase depending on their stay on the company and the evaluation on their performance.
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COMPANY POLICIES
POLICY ON HIRING
Company vacancies are advertised through local newspaper
Applicants should submit application before interview and examination will be
conducted.
Before employees start working, they should undergo a one – day training and should
comply for SSS number clearance, police clearance and health certificate.
Signing contract should be done before the worker starts a job.
Worker shall be provided with the company’s manual, which covers the rules and
regulations and safety procedures of the company.
WORKING POLICIES
1st shift employees are required to report to duty at exactly 7:00 in the morning until
3:00 in the afternoon, 2nd shift employees are required to report to duty at exactly 3:00
in the afternoon until 11:00 in the midnight (M-F). Both shifts have a 30 minutes break.
During Saturday: 1st shift 7:00am - 12:30pm and 2nd shift 12:30pm – 6pm
The company operates 6 days per week.
Employees must abide the company’s policies, rules and regulations.
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Health Attendance Policy
The goodies and treats company is very concerned with regards to the health conditions
of the employees. Since the company belongs to the food industry, workers with
illnesses like coughs, colds, fever and other sickness are not allowed to work to prevent
contamination of these diseases with the company’s products. Employees are provided
with sick days in which they could use when they are sick. Employees should use their
personal days or vacation day’s non-illness related time off. All full-time employees will
receive sick days according to the following schedule: Employees will be eligible for paid
sick days after 6 months of employment. After 6 months of employment, employees will
be eligible for one sick day for every two months worked from date of hire, with a
maximum of 5 days in their first year of employment. Every succeeding calendar year,
employees will be eligible for 5 sick days. Sick days may be accumulated and carried
over from year to year to a maximum of 10 days. All other unused sick days by the end
of the year is forfeited.
Overtime policy
1. Definition of overtime
• Overtime is time worked that exceeds the hours of a full-time employee’s regular daily schedule on pay status or exceeds 40 hours on pay status in a workweek.
• Pay status includes time worked and paid leave such as sick leave, military leave, and compensatory time off, vacation leave, holidays, and administrative leave with pay.
2. Overtime Rates
When employee works overtime, they will be paid at rate:
• Monday to Friday: 1.5 x hourly rate.• Sunday: 2.0 x hourly rate.• Holidays: 3.0 x hourly rate.
3. Principles of working overtime
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Employees are paid for working overtime provides that they must be in compliance with principles as follows:
• Any overtime working must be agreed in advance with the line manager.
• Overtime will only be paid for periods of more than one hour in any day.
• Advance warning of overtime working will be given wherever practicable, but it is inevitable that some overtime may be required at short notice due to sickness or other emergencies.
• Claims must be made monthly, for overtime worked in the previous month, on authorized claim forms.
• Payments will be made through the payroll.
BENEFITS
Employee Protection
Employees are entitled to sick leave benefits that will provide financial security even if they have
lost the ability to earn in times of sickness or injury.
Time of With Pay
Employees are also entitled to leave benefits that will allow for the continuity of their
wage earnings even if they are on vacation or have to attend to emergency matters requiring
their presence.
Health Care
The company provides a comprehensive medical program for employees and their
dependents to protect them against financial burden that comes with illness or injury.
Flexible Loan Facilities
The company offers an interest free loan facility that is tailored to address the various
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Financial needs of the employees. Its flexibility lies in the loan purpose, amount, and guidelines.
Educational Program
This helps meet the financial requirements of employees who desire to pursue further studies. It
includes loan facilities for the educational needs of employees’ dependents.
Insurance on Accident and Death Benefits
Financial assistance is extended to the bereaved family to help defray expenses incurred as a
result of the employee or an immediate family member of an employee.
Retirement Benefits
The company provides a noncontributory to assist the employee in preparing for a comfortable
live even after retirement.
Pag-ibig
The company provides PAG-IBIG housing loan to the employees to have a better and
comfortable life while working with the company.
Social Security System (SSS)
Primarily refers to Social welfare service concerned with social protection or protection against
socially recognized conditions, including poverty, old age, disability, unemployment and others.
PhilHealth
The company is engaged in PhilHealth to assist employee during period of sickness and when
being hospitalized.
LEAVE BENEFITS
Male employees have seven (7) days paternity leave.
Sick leave with pay for fifteen (15 days) every year for regular employees.
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Fifteen (15days) vacation leave with pay for those regular workers.
Uniforms
3 sets of uniforms are provided by the company to each employee
COMPANY RULES AND REGULATIONS
Legend:
Verbal Warning – V
Written Warning – W
Suspension - S
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Dismissal - D
Rules and Regulations
(Misconduct)
1st offense 2ndoffense 3rdoffense 4th offense
1. Sabotage – Deliberately destroying or rendering inoperative any mechanical that can harm the product
D
2. Work Ethics / Decorum – Horseplay , Unruly conduct , rude pranks , petty annoyances such as loud talking, shouting, whistling, noise barrage and the like that would cause disturbance, disruptions or delay of work
V W S D
3. Gambling / Betting – Engaging in game of chance or lottery, or soliciting bets therefore within company prmises W 3-6 Days
S
D
4. Intoxication / and Use of Prohibited Drugs – Drinking of liquor or intoxicating beverages inside company premises during company events outside company premises
15-30 days
S
5. Moral Conduct – Any Immoral, scandalous, or indecent act or conduct howsoever committed within company premises or outside company premises during company event
15-30 days
S D
6. Sexual Harassment – Directing or inducing another to commit any acts of sexual harassment or cooperating in the commission thereof by another, without which
D
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it would not have been committed
7. Violence, Threats, Intimidation – Threatening or intimidating whether directly, superior, fellow employee, members of the latter’s family or visitors
15-30 days
S D
8. Personal Business – Engaging in business like vending, selling, soliciting or collecting contributions for whatever purpose anytime of the day or night inside company premises unless expressly authorized by the management
V W
3 days
S D
9. Workplace Safety and Security – Bringing, carrying, sporting, display, use or possession of dangerous or deadly weapons, firearms, explosives or ammunitions into or within the company premises
30 days
S D
(Disobedience) 1st offense 2nd offense 3rd offense 4th offense
1. Wearing of company ID – Failure or refusal to wear the company ID card while inside the company premises
V W
3 Days
S D
2. Company Shoes – Wearing the company working shoes outside company or outside designated work area V W
3 Days
S D
3. Proper Attire / Uniform – Reporting for work without wearing the prescribed company uniform or wearing an incomplete or untidy uniform
V W S D
4. Personal Protective Equipment – Failure or refusal to wear protective equipment when and where it is
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required by the company
W
10 days
S D
5. Medical and Health Rules – Unjustifiable or unreasonable failure or refusal to submit for laboratory and or physical/medical examination, drug test, etc. wherever required by the company in safeguarding the health of employee or of his co-employee, or sickness
S D
(Neglect of Duty) 1st offense 2nd offense 3rd offense 4th offense
1. Tardiness – whether consecutive or not, if not excused. There is tardiness when an employee reports for work or punches in one minute after his/her scheduled working time, on working day. Every three(3) instances of tardiness in a month is considered one(1) violation
V W
10 days
S
D
2. AWOL(Absent Without Leave) – 10 days There is AWOL if the absence is incurred without notifying the company, or if the leave is not authorized and approved leave
W D
3. Abandonment of Work – Failure to report for work or absence without valid or justifiable reasons and clear intention to server the employee relationship
15-30 days
S D
4. Use of ID cards and Attendance Records – failure or refusal to log/time in upon reporting to work or to log/time out after the employee’s work schedule, or wherever so
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required when leaving or returning to work. At least (3) instances of failure or refusal to log/time in or out in a month shall constitute one violation.
W
3 days
S D
5. Abuse of Company Time – unauthorized under time; quitting work without permission before time off; extended meal period or break
W
3 days
S
D
6. Negligence – any action or lack of action resulting in injury to person or loss or damage to property
15-30days
S D
(Dishonesty / Fraud / Breach to Trust) 1st offense 2nd offense 3rd offense 4thoffense
1. Attendance records / Use of ID cards – using another employee’s ID card for logging in or out or registering another employee’s attendance in the attendance record
15-30 days
S D
2. Fraud / Dishonesty – stealing, Pilfering, or attempting to steal or pilfer company funds or property, or those of other company employee’s; substituting parts, materials, supplies or property with items or lesser or inferior quality, or with items other than those of the company or of other company employee’s
D
(Commission of a Crime / Offense) 1st offense 2nd offense 3rd offense 4th offense
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1. Commission of a crime or offense against the employer, superior, or co-employee or their immediate member of the family
D
PERFORMANCE APPRAISAL FORM
Appraisal Score:
EMPLOYEE INFORMATION
Name: Job Title:
Production Officers Name: Department:
Hire Date: Last Appraisal Date:
Evaluated By: Acknowledged by:
DEFINITION OF RATINGS:
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A. EXCELLENT (300 PTS.): Consistently exceeds all relevant performance standards. Provides
leadership, fosters teamwork, is highly productive, innovative, and responsive and generates top
quality work. Active in industry-related professional and/or community groups.
B. ABOVE AVERAGE (250 PTS.): Consistently meets and often exceeds all relevant performance
standards. Shows initiative and versatility, works collaboratively, has strong technical &
interpersonal skills or has achieved significant improvement in these areas.
C. AVERAGE (200 PTS.): Meets all relevant performance standards. Seldom exceeds or falls short
of desired results or objectives. Lacks appropriate level of skills or is inexperienced/still learning
the scope of the job.
D. FAIR (150 PTS.): Sometimes meets the performance standards. Seldom exceeds and often falls
short of desired results. Performance has declined significantly, or employee has not sustained
adequate improvement, as required since the last performance review or performance
improvement plan.
E. POOR (100 PTS.): Consistently falls short of performance standards.
INSTRUCTIONS:
Basing on the definition of ratings shown above, describe the employee’s contributions in each of the performance categories below. Check only once every category.
CRITERIAA B C D E Weighted Score Total5 4 3 2 1
QualityCompletes high quality work according to specifications. Thoroughly follows standards and procedures. Keeps complete records. Pays attention to details. Has a strong sense of quality and knows how to achieve it.
10
Desire to Improve QualityContinually looks for ways to improve and promote quality. Applies
10
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feedback to improve performance.Job KnowledgePossesses skills and knowledge to perform the job competently.
10
CommunicationOrganizes and expresses ideas and information clearly, using appropriate and efficient methods of conveying the information.
5
Interpersonal SkillsIs sensitive to the needs, feelings and capabilities of others. Approaches others in a non-threatening and pleasant manner and treats them with respect.
5
Conflict ResolutionExpresses alternative points of view in a non-threatening way. Knows when it is appropriate to compromise and when it is important to take a stand.
5
TeamworkWorks on projects as part of a team, exchanging ideas and contributing skills that complement those of the other team members. Fulfills commitments to team members.
5
EthicsMaintains high level of character and a professional attitude. Is able to conform and promote the company’s standards of conduct.
5
InitiativeStrives to learn and improve. Seeks out ways to better themselves and the company. Takes on responsibilities. Does not remain idle – is hard working. Self-motivated.
5
Total Accumulated Score by the Employee / Worker
Range of Points:
A. Excellent ----------------------- (300 – 251)
B. Above Average ----------------- (250 – 201)
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C. Average ------------------------- (200 – 151)
D. Fair ------------------------------ (150 – 101)
E. Poor ------------------------------ (100 – 60)
Evaluator’s Recommendations:_____________________________________________________________________________________________________________________________________________
Interpretation:
One the most effective methods of motivating employees is to give them opportunities and rewards, experts say. Workers particularly respond to public praise for their achievements.
Employees that grades as excellent (300-251) receives tangible rewards such as:
Monetary Bonuses
Time-off
Gift Certificates of merit
Groceries
Candidate for promotion if higher position is vacant/available
Employees that grades as Above Average (250-201) will be compensated
Accordingly:
Gift Certificates of merit
Groceries
Acknowledgement on bulletin board
Compliment their work while others are listening
Employees that grades Average score:
Acknowledgement posted on bulletin board
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Employees with Fair score:
Decrease in 20% salary for half a year
Relieved if not improved for the next Appraisal
Employees that grades Poor score:
Relieved from work if receive poor consecutive performance
Note: Performance appraisal is conducted semi-annually
Waste Management
The egg shell is the primary waste identified by the proponents that is needed to be managed.
Egg shell waste falls within the category of waste food, drink or materials used in or resulting from the preparation of food or drinks and could, subject to adequate scrutiny, be suitable for land spreading. The total neutralizing value (lime) is almost the same as ground chalk or limestone tonne for tonne. However, the physical nature of the egg shell waste (large shell fragments) and the foul rotten egg odors produced when the material degrades reduce the liming value and render the waste difficult to recycle to land. Ideally, the waste should be dried at source, transported to a site where it can be finely ground and used as a source of lime in agriculture. Some form of intensive heat treatment will be necessary at some point in the process to guarantee pathogen kill. However the costs of drying, additional transport, grinding and heat treatment required are likely to make this option less desirable in the short term.
Egg shell waste does have a value either as an animal feed or as a fertilizer or lime substitute. In many other countries, it is accepted practice for egg shells to be dried and used as a source of calcium in animal feeds. This is currently not undertaken in the UK, although it would be a very efficient use of the industry's by-products. It is not used due to concerns over the transfer of pathogens from raw animal by-products.
To dispose the company’s waste, the proponents will sell the egg shell to animal feed or fertilizer manufacturers. It is a good waste management method because the waste is disposed plus a source of extra income for the company.
For other trashes and waste, there is a schedule or a routine in the collection of garbage in the area where the company belongs.
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Source: http://74.6.116.140/search/srpcache?ei=UTF-8&p=waste+management+egg+shell&rd=r1&meta=vc%3Dph&fr=yfp-t-892-s&fp_ip=ph&u=http://cc.bingj.com/cache.aspx?q=waste+management+egg+shell&d=4563802306447823&mkt=en-US&setlang=en-US&w=3db16684,fd0c459&icp=1&.intl=us&sig=IQNXtMLP7QEhNu9.lUbO3w--
CONCLUSION:
Thus, we come up that our proposed product is feasible enough to introduce in the market because of proper management, from higher-positional level down to the lower-level. The proponents assure that proper planning, organizing, leading, and controlling within the organization increases employee morale, safety, and benefits in order for our worker to work honestly, patient, with camaraderie for the success of the company.
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CHAPTER IV
FINANCIAL ASPECT
SCOPE OF THE FINANCIAL ASPECT
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Introduction
Major Assumptions
Sources of Funds
Projected Income Statement
Analysis of Income Statement
Projected Cash Flow
Analysis of Cash Flow
Projected Balance Sheet
Analysis of Balance Sheet
List of Notes
List of Schedules
Financial Ratios
Analysis of Financial Ratios
Conclusion
INTRODUCTION
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In every business establishments or organizations there are goals needs to attain. It involves careful
planning and detailed analysis and evaluation before having certain decision that would make a lot
of changes in the business organizations. Financial conditions of the company which takes important
part of a certain projects. It shows the detailed information of the overall projects cost of the
company’s profitability and how it will handle all the financial obligations, in doing such it is
accompanied by presenting the company’s assets liabilities the owner’s equities the estimated
income and expenses, cash flows presentations and all notes and schedules needed in the
preparation of the balance sheet and income statement.
Major Assumptions
The proponents assume that taxes and licenses is 12% based on BIR Vatable Report
(Vatable Amount)
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The proponents redeemed personal loan amounted to 3,700,000 PHP each
Rental expense would be 96,000 PHP per year
The projections of the different accounts will increase per year using the inflation rate
which is 8%
Machineries will have a useful life of 10 years
Furniture and fixtures will have a useful life of 5 years
The proponents assumed to use straight line method for depreciation expense
The proponents assume to have power and water (electricity and water) Php 600,000
annually
Telephone expense is 17,988 PHP per year
Salary expense will increase 6% per year.
Allocated renovation expense will be Php 50,000.00 in the succeeding years, charged to
repair & maintenance.
Fuel expense is 1,800 PHP per week
Salary and wages, direct and indirect labor will increase by 6% per year
The proponents assume that the number of employees is the same within 5 years
Repair and maintenance will have an allocation of 100,000 PHP for renovation per year.
Assumed that 80% of the total units available for sale for the year will be sold. 90% of
the 80% units sold will be sold as cash and 10% will be charged to accounts receivable.
Allocation for bad debts is 3 % of Accounts Receivable.
CREDIT AND COLLECTION POLICIES
Upon purchase debtor will be given 30 days to pay
If the debtor fully pays earlier than 30 days he will be granted a 2%% discount of the goods
purchased.
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Upon delivery, 30% of the total credit should be paid as down payment.
If debtor is unable to fully pay the entire credit amount, the company will add a 1% interest
to the amount to be paid for every passing day beyond the given 30 day’s deadline.
TOTAL PROJECT COST
Goodies & Treats CompanyPre-Operating Expenses
Pre-Operating
Pre Investment Cash 117,979.19
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Organizational Cost 8,310.00
Property, Plant & Equipment 2,794,534.77Machineries & Equipment 2,327,200.00Office Equipment 99,076.00Transportation Equipment 280,000.00Furniture & Fixture 88,258.77
Working CapitalRaw Materials 2,101,559.04Factory Supplies 5,646,795.00Office Supplies 82,794.00Repair & Maintenance Supplies 5,537.00Taxes & Licenses 36,095.00Advertising 123,996.00Fuel Expense 86,400.00Rental Expense 96,000.00
8,179,176.04
Total Estimated Project Cost 11,100,000.00Analysis:
The table shows the total estimated project cost with the amount of Php. 11,100,000.00. The cost is projected for the whole year round.
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PROJECTED INCOME STATEMENT
GOODIES & TREATS COMPANY PROJECTED INCOME STATEMENT
(Philippine Peso) 2011 2012 2013 2014 2015 Sales 14,402,429.30 18,317,614.52 20,061,903.92 21,415,659.28 22,752,139.74Less: Cost of Sales 12,002,024.42 12,720,565.64 13,482,462.31 14,299,986.17 15,172,948.50Gross Profit 2,400,404.88 5,597,048.88 6,579,441.61 7,115,673.12 7,579,191.24 Operating expenses 2,902,224.77 3,388,569.98 3,640,057.42 3,852,382.03 4,066,897.57
Net Income / Loss (501,819.89)
2,208,478.91
2,939,384.19
3,263,291.09
3,512,293.66
Average Net Income
2,284,325.59
Payback Period 4.86
Analysis:
The table shows the projected income statement of the company. As what we observed the company is gaining. As we continue the projection, we can see that the net income is increasing. It’s a good indication that the company can compete to the other.
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Goodies & Treats Company Balance Sheet
Pre-Operating 2011 2012 2013 2014 2015
Current Assets Cash 117,979.19 2,814,292.24 4,094,332.15 6,816,086.90 10,001,386.72 13,444,898.60Accounts Receivable 1,358,594.73 1,634,424.37 1,742,168.42 1,807,907.81 1,868,756.43Inventory -Office Supplies 82,794.00 Inventory Finished Goods 3,600,607.33 4,579,403.63 5,015,475.98 5,353,914.82 5,688,034.93Inventory -Raw Materials 5,646,795.00 -Factory Supplies 2,101,559.04 7,831,148.04 0.00 0.00 0.00 0.00 0.00 Total Current Assets 7,949,127.23 7,773,494.29 10,308,160.15 13,573,731.30 17,163,209.35 21,001,689.96 Non Current Assets Organizational Cost 8,310.00 8,310.00 8,310.00 8,310.00 8,310.00 8,310.00Property, Plant & Equipment(net) 2,794,534.77 2,468,347.82 2,142,160.87 1,815,973.91 1,489,786.96 1,163,600.00Machineries & Equipment 2,327,200.00 Office Equipment 99,076.00 Transportation Equipment 280,000.00 Furniture & Fixture 88,258.77 Total Non Current Assets 2,802,844.77 2,476,657.82 2,150,470.87 1,824,283.91 1,498,096.96 1,171,910.00Total Assets 10,751,972.00 10,250,152.11 12,458,631.02 15,398,015.21 18,661,306.30 22,173,599.97 Liabilities Loan Payable 6,000,000 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00Total Liabilities 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00
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Owners Equity Owners Capital 5,100,000 Raw Materials Factory Supplies Office Supplies Repair & Maintenance Supplies 5,537.00 Taxes & Licenses 36,095.00 Advertising 123,996.00 Fuel Expense 86,400.00 Rental Expense 96,000.00 Total Equity 4,751,972.00 4,250,152.11 6,458,631.02 9,398,015.21 12,661,306.30 16,173,599.97Total Liabilities & Equity 10,751,972.00 10,250,152.11 12,458,631.02 15,398,015.21 18,661,306.30 22,173,599.97
Analysis:
The table shows the projected balance sheet of the company. Balance sheet actually represents the financial status of the business as of a given date which consists of the three accounting values such as the assets, liabilities and capital.
As what we have observed in the table, company’s pre-operating investment has increase. It’s a good indication that company is really gaining thus it gives a favorable business opportunity. On the first year of operation, company’s pre-operating investment is Php. 10,751,972.00, its increase to 12,458,631.02 on the second year recovering on the lost during first year.
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Goodies & Treats Company Statement of Cash Flows Pre-Operating 2011 2012 2013 2014 2015Cash flows from Operation Net Income/Loss (501,819.89) 2,208,478.91 2,939,384.19 3,263,291.09 3,512,293.66 Add: Depreciation 326,186.95 326,186.95 326,186.95 326,186.95 326,186.95 Bad debts 42,018.39 51,848.75 56,784.61 60,574.01 64,329.35 Increase/Decrease in assets Accounts Receivable (1,400,613.12) (327,678.40) (164,528.65) (126,313.39) (125,177.97)Inventory 4,230,540.71 (978,796.30) (436,072.35) (338,438.84) (334,120.11) Total 0.00 2,696,313.05 1,280,039.90 2,721,754.75 3,185,299.82 3,443,511.88 Cash flows from Investing Activities Feasibility Study 8,310.00 Property Plant & Equipment 2,794,534.77 Total 2,802,844.77 0.00 0.00 0.00 0.00 0.00 Cash flows from Financing Activities Total 0.00 0.00 0.00 0.00 0.00 0.00 Net Increase/ Decrease in Cash 0.00 2,696,313.05 1,280,039.90 2,721,754.75 3,185,299.82 3,443,511.88 Add: Cash balance beginning 117,979.19 117,979.19 2,814,292.24 4,094,332.15 6,816,086.90 10,001,386.72 Cash Balance End 117,979.19 2,814,292.24 4,094,332.15 6,816,086.90 10,001,386.72 13,444,898.60
Analysis: The ending cash balance of the company is 117,979.19 in the pre-operating period and is increasing in the following years.
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FINANCIAL RATIOS
Financial ratio is a ratio of selected values in an enterprises financial statement. These ratios are very useful in any business organization because it depicts the liquidity, solvency and profitability of a particular business industry. The following are the discussions on the different ratios and its objectives.
Profitability Ratio 2011 2012 2013 2014 2015Gross Profit Margin Gross Profit 2,400,404.88 5,597,048.88 6,579,441.61 7,115,673.12 7,579,191.24 Sales 14,402,429.30 18,317,614.52 20,061,903.92 21,415,659.28 22,752,139.74 GPM 17.73% 31.29% 32.37% 33.23% 33.31% RATIO 0.1773:5.6 0.3129:3.2 0.3237:3.1 0.3323:3.01 0..3331:3
Analysis:This ratio signifies the average mark-up obtained in terms of the product sold. The ratio of the
company shows a good implication because it is increasing. It shows the ability of the company to both control costs and inventories of products. The percentage of increase is that from 17.73% to 33.31%.
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Net Profit Ratio 2011 2012 2013 2014 2015Net Profit Margin Net Profit (501,819.89) 2,208,478.91 2,939,384.19 3,263,291.09 3,512,293.66 Sales 14,402,429.30 18,317,614.52 20,061,903.92 21,415,659.28 22,752,139.74 NPM (0.0348) 0.1087 0.1279 0.1352 0.1386 RATIO (0.0348):28.7 0.1087:9.2 0.1279:7.8 0.1352:7.4 0.1386:7.2
Analysis: Profit ratio is broadly used as an overall profitability of the operation in the business.
Therefore, in the ratio if net profit to net sales, the comparative analysis of the net profit and sales is
considered to be a direct way of appraising the competency of the business activities. The ratio of the
net profit to net worth is to assess the profitability of the worth. It is a good picture because it
increases for the following years. After the consideration of all the revenue and expenses, company
got (0.0348) and it increase to 0.1386.
Return on Equity Ratio 2011 2012 2013 2014 2015Return on Equity Net Income (501,819.89) 2,208,478.91 2,939,384.19 3,263,291.09 3,512,293.66 Ave. Owners Equity 8,757,671.06 8,757,671.06 8,757,671.06 8,757,671.06 8,757,671.06 ROE (0.0573) 0.2522 0.3356 0.3726 0.4011 RATIO (0.0573):17.5 0.2522:4 0.3356:3 0.3726:2.7 0.4011:2.5
Analysis: The ratio is very necessary because it indicates how much the company earned and eventuallyable to return the total investment. It gives and idea about how a firm's performance doing with regards to the investments contributed by the stockholders. The ratio is increasing and this is a good indication for the company,from (0.0573) to 0.4011, meaning the company's profit earned is increasing. It shows from the next 5 years the company is doing well with regards to the investments.
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Operating Return
on Asset
2011 2012 2013 2014 2015
Operating Income (501,819.89) 2,208,478.91 2,939,384.19 3,263,291.09 3,512,293.66 Ave. Total Assets 14,757,671.06 14,757,671.06 14,757,671.06 14,757,671.06 14,757,671.06
(0.0340) 0.1496 0.1992 0.2211 0.2380
RATIO (0.0340):29 0.1496:6.7 0.1992:5 0.2211:4.5 0.2380:4.2
Analysis:
The ratio is increasing and this indicates a good indication to the company since the total
operating income of the company is increasing.
Net Return on Asset 2011 2012 2013 2014 2015
Net income (501,819.89)
2,208,478.91
2,939,384.19
3,263,291.09
3,512,293.66
Ave. Total Assets 14,757,671.06 14,757,671.06 14,757,671.06 14,757,671.06 14,757,671.06 -3% 15% 20% 22% 24%RATIO (0.03):33 0.15:6 0.20:5 0.22:4.5 0.24:4
Analysis: This explains how the management utilizes the assets and generates income. The company's
ratios net return on assets shows a good implications because it is increasing. Increasing net return on
assets means increasing amount of profit earned by the company. As what we see on the table from the
first of the the operation the return of asset is -3% and it increases for the following years.
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Turnover ratio 2011 2012 2013 2014 2015(Total asset turnover)
Sales 14,402,429.30 18,317,614.52 20,061,903.92 21,415,659.28 22,752,139.74 Ave. Total Assets 14,757,671.06 14,757,671.06 14,757,671.06 14,757,671.06 14,757,671.06 0.9759 1.2412 1.3594 1.4512 1.5417 RATIO 0.9759:1 1.2412:0.8 1.3594:0.7 1.4512:0.69 1.5417:0.65
Analysis:
These ratios establish how many times that the company's assets are being made useful
in enduring sales. These will also tell us how fast the company can convert its inventories and receivables. The ratio is 1:1 for the year 2011 and increasing for on the succeeding years.
Turnover ratio 2011 2012 2013 2014 2015(Fixed asset turnover)
Sales 14,402,429.30 18,317,614.52 20,061,903.92 21,415,659.28 22,752,139.74 Ave. Fixed Assets 1,815,973.91 1,815,973.91 1,815,973.91 1,815,973.91 1,815,973.91 7.9310 10.0869 11.0475 11.7929 12.5289 RATIO 7.9310:0.13 10.0869:0.10 11.0475:0.09 11.7929:0.08 12.5289:0.07
Analysis:The table shows the fixed asset turnover of the company. The ratio is 14:2, which means in
every sale there is a turnover of 7.
Quick ratio 2011 2012 2013 2014 2015
Current Asset- 4,172,886.97 5,728,756.52 8,558,255.32 11,809,294.52 15,313,655.03
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InventoryCurrent Liabilities 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00
Curret Ratio 0.70 0.95 1.43 1.97 2.55 RATIO 0.70:1.4 0.95:1.1 1.43:0.7 1.97:0.5 2.55:0.4
Analysis:
The table shows the quick ratio of the company. This ratio is computed through dividing
current assets by current liabilities. In general, the enterprises which hold the quick assets
equivalent in amount to current liabilites are considered to have a favorable solvency. In other
words, only the assets that can be converted into cash are included in this ratio. Company's quick
ratio shows a good picture for the following years considering that it is increasing. It indicates that the company has the ability to use its quick asset.
Leverage ratio 2011 2012 2013 2014 2015
Debt to Asset Ratio Total Debt 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00 6,000,000.00Total Asset 10,250,152.11 12,458,631.02 15,398,015.21 18,661,306.30 22,173,599.97
Debt to Asset Ratio 0.59 0.48 0.39 0.32 0.27 RATIO 0.59:1.7 0.48:2 0.39:2.6 0.32:3 0.27:3.7
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Analysis:The table shows the debt to asset ratio of the company. Company's debt to asset ratio shows a good
picture because its decreasing. It indicates that the company is capable enough to pay its liabilities on time.As what we can see from the table above, on the first year has .59 and it goes down to .27 for the next five years.
Payback Period
Total Investment Cost 11,100,000Average Net Income 2,284,325.59
Payback Period 4.86
Analysis:The table shows the payback period of the company. The company can have a return to its
Investment for about 4.86 years.
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Conclusion:The investment for the project is reasonable. As a matter of fact, the working capital
Requirement for the business is minimal. And financially, the investment will be gained back in a
Short period of time.
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CHAPTER V
SOCIO-ECONOMIC ASPECT
A. INTRODUCTION
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The socio economic aspect represents the involvement and advantage of the proposed project towards the consumers, in one way or another are related to the project. The aspects develop its attention on how Goodies and Treats Company will benefit the community as well as the surrounding environment. This aspect is concern on how the proposed project will contribute to the society, most especially to the economy and to the value of people’s lives as well.
Company makes sure that the proposed project will be environmentally friendly, free from chemical waste materials that may further contribute and degenerate the problem of biohazards and pollution, because this project provides a safe and healthy environment and a better standard of living.
B. IMPACT STATEMENT
Every company’s goal is to generate income and to be economically stable all throughout the years. Goodies and Treats Company does not only focusing on how much profit they might get but to
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what benefits it might give to people, community, business sectors, government, and the nation as a whole. Its main concern is to satisfy human wants and needs.
There are lots of noodles nowadays but the proponents believe that the people will patronize the new product. Aside for the fact that it is very affordable; it is also very tasty and nutritious. Effective marketing benefits society. It enhances competition, which in turn, our company will continue improving the quality of our product and also the price are set at low prices. This makes our country more competitive in world markets and provides jobs and higher standard of living for the citizens.
Goodies and Treats Company is located in the Philippines and its product is purely made from the Philippines. Raw materials are all natural and full of nutrients. This makes it a proud product of the Philippines. Goodies and Treats Company is also concerned with the health and safety of people surrounding near the establishment. The company assures and guarantees that the raw materials don’t contain hazardous elements. The company makes some ways and means in maintaining always the disposal of our waste without adverse effect to our environment.
C. COST BENEFIT EVALUATION
There are lots of different sectors that are benefited by the company’s operations and existence. Direct beneficiaries are the consumers, the government, the economy and most especially the raw materials suppliers.
Consumer Benefits – One of the entities that will benefit the existence of our proposed project is the consumers. The sales of product depend upon the acceptance of the consumers. Businessmen are inspired to create and introduce product that will respond to the consumer’s needs and wants. For this reasons, the company must produce quality products that will satisfy costumer needs.
Government – The government is one of the entities who will benefit the proposed project of the proponents because their funds will increase through the taxes being paid.
Economic Benefits - Goodies and Treats Company does not focus on profit gaining but also to help the economy grow by improving our economy through the job opportunities we have given to the community. In the search for local jobs, this is a huge benefit for economic development that we are trying to increase local employment.
Suppliers – The suppliers also benefit from Goodies and Treats Company through the raw materials being purchased by the company. In which, in return will be an income on their part. And in terms of business relationship, both the organization and the suppliers will also gain.
Market - Goodies and Treats Company aims to gain attention and preference by providing a need satisfying product with effective marketing programs. The company is aware of several methods in the
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market today but will strongly believe that the public will patronize our product. The survey shows that the people are willing to buy the new product.
D. SENSITIVITY ANALYSIS
The proposed project does not focus only for the company benefits itself but it also extends a prospect to the different sectors such as economic, government, market, suppliers and the consumer as a whole. The government will be able to increase its revenue through the remittance of the company’s taxes. The project has a great impact to the society of people who we all considered as consumers. The new product is designed to answer their craving of eating nutritious foods and eventually, guarantee them a good quality satisfaction they long for.
E. ENVIRONMENTAL IMPACT
This aspect is another feature that every company must consider. Goodies and Treats Company is environment- friendly. In which Goodies and Treats Company makes sure that the environment will not be polluted. There will be a proper waste disposal and assures that these wastes don’t contain hazardous elements.
F. REQUIREMENTS NEEDED TO START A BUSINESS
Before a project is realized, certain requirements need to be complied to ensure the legality of the business and its operations.
The following are essential documents for the business to be legalized:
Barangay clearance
Mayor’s permit
Business permit
Building permit
Sanitary permit
Bureau of internal revenue registration
Land transportation office
Securities and Exchange Commission
Safety permit
Fee assessment
Zoning clearance
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G. CONCLUSION
Goodies and Treats Company wants to gain a huge profit but its main concern is its responsibility to satisfy everyone’s wants and needs and to give job opportunities to people and to promote a good standard of living all throughout the community and the whole nation.
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Appendices
Survey Form:
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PAGKATAW: _____ Lalaki _____ Babae
EDAD: _____ 5 -9 _____ 10- 14
ADDRESS: ( ) Lapu-lapu ( ) Mandaue ( ) Cebu
PAMAAGI SA PAGTUBAG: Palihug ug butang ug CHECK sa mga blangko ubos sa mga pangutana. Kung wala sa pili-anan and imong tubag pwede ra ibutang o isulat ang imong tubag o e- check lang ang blangko tapad sa uban pa.
1. Pila ka beses ka mo kaun ug cookies sa usa ka semana?
( ) Usa ka beses ( ) Duha ka beses ( ) Tulo ka bese ( ) Upat ka beses
( ) Lima ka beses
2. Pila ka buok putos ang imong mahurot kada kaun nimo ug cookies?
( ) Usa ka putos ( ) Duha ka putos ( ) Tulo ka putos ( ) Upat ka putos
( ) Lima ka putos
3. Taga-an ba ka sa imong ginikanan ug kwarta para palit nimo pagkaun?
( ) Oo ( ) Dili
4. Mga pila ang ilang e-hatag nga kwarta para nimo?
( ) 10 to 20 ( ) 21 to 50 ( ) 51 to 100 ( ) 100 pataas
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Arithmetic Straight Line (Demand)
year Y difference a Yi-1 YC Y-YC (Y-YC)^22005 39,283,1002006 40,809,548 1,526,448 1,612,030 39,283,100 40,895,130 -85581.75 7,324,235,9332007 42,421,615 1,612,067 1,612,030 40,895,130 42,507,160 -85544.50 7,317,861,4802008 44,033,682 1,612,067 1,612,030 42,507,160 44,119,189 -85507.25 7,311,489,8032009 45,731,219 1,697,537 1,612,030 44,119,189 45,731,219 - -
6,448,119 54883968042011 1,612,030 45,731,219 47,343,2492012 1,612,030 47,343,249 48,955,2792013 1,612,030 48,955,279 50,567,3082014 1,612,030 50,567,308 52,179,3382015 1,612,030 52,179,338 53,791,368
Standard Deviation 74,083.71
Arithmetic Geometric Curve Demand
year Y % increase Yi+1 1+r YC Y-YC (Y-YC)^2
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2005 39,283,100 40,975,103 1.04 39,502,309 -219209 48,052,586,110.152006 40,809,548 3.74% 42,502,809 1.04 40,975,103 -165555 27,408,519,474.012007 42,421,615 3.80% 44,087,473 1.04 42,502,809 -81194 6,592,410,311.232008 44,033,682 3.66% 45,731,219 1.04 44,087,473 -53791 2,893,441,652.062009 45,731,219 3.71%
14.91% 21,236,739,386.862011 45,731,219 1.04 47,436,2502012 47,436,250 1.04 49,204,8522013 49,204,852 1.04 51,039,3932014 51,039,393 1.04 52,942,3332015 52,942,333 1.04 54,916,222
Standard Deviation 145,728.31
Statistical Straight Line Demand
year Y X X^2 XY a b bx YC Y-YC (Y-YC)^22005 39,283,100 -5 25 -196415500 43,299,873 822,313 -4111567 39,188,306 94,794 89859927162006 40,809,548 -3 9 -122428644 43,299,873 822,313 -2466940 40,832,932 -23384 546829272.5
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2007 42,421,615 -1 1 -42421615 43,299,873 822,313 -822313 42,477,559 -55944 31297577762008 44,033,682 1 1 44,033,682 43,299,873 822,313 822,313 44,122,186 -88504 78329748742009 45,731,219 3 9 137,193,657 43,299,873 822,313 2,466,940 45,766,813 -35594 12669294462010 47,520,072 5 25 237,600,360 43,299,873 822,313 4,111,567 47,411,440 108,632 11800952808
Sum259,799,23
6 70 57,561,9405593906149
2011 7 49 43,299,873 822,313 5,756,194 49,056,0672012 9 81 43,299,873 822,313 7,400,821 50,700,6942013 11 121 43,299,873 822,313 9,045,448 52,345,3202014 13 169 43,299,873 822,313 10,690,075 53,989,9472015 15 225 43,299,873 822,313 12,334,701 55,634,574
Standard Deviation 74,792.42
Statistical Parabolic DemandYear Y X X^2 X^4 XY X^2Y a b bx c cX^2 YC Y-YC Y-YC^2
2005 39,283,100 -5 25 625 -196415500 982,077,500 43,213,732 822,313 -4111567 7,384 184,588 39,286,752 -3652 13338930.06
2006 40,809,548 -3 9 81 -122428644 367,285,932 43,213,732 822,313 -2466940 7,384 66,452 40,813,243 -3695 13653288.93
2007 42,421,615 -1 1 1 -42421615 42,421,615 43,213,732 822,313 -822313 7,384 7,384 42,398,802 22813 520439487
2008 44,033,682 1 1 1 44,033,682 44,033,682 43,213,732 822,313 822,313 7,384 7,384 44,043,429 -9747 94998439.37
2009 45,731,219 3 9 81 137,193,657 411,580,971 43,213,732 822,313 2,466,940 7,384 66,452 45,747,124 -15905 252956528.4
2010 47,520,072 5 25 625 237,600,360 1,188,001,800 43,213,732 822,313 4,111,567 7,384 184,588 47,509,887 10185 103743682.7
Sum 259,799,236 0 70 1414 57,561,940 3,035,401,500
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166521726.1
2011 7 49 43,213,732 822,313 5,756,194 7,384 361,792 49,331,718
2012 9 81 43,213,732 822,313 7,400,821 7,384 598,064 51,212,617
2013 11 121 43,213,732 822,313 9,045,448 7,384 893,404 53,152,584
2014 13 169 43,213,732 822,313 10,690,075 7,384 1,247,812 55,151,619
2015 15 225 43,213,732 822,313 12,334,701 7,384 1,661,289 57,209,722
SD 12,904.33
Arithmetic Straight Line (Supply)year Y difference a Yi-1 YC Y-YC (Y-YC)^22005 37,141,0022006 38,581,584 1,440,582 1,538,711 37,141,002 38,679,713 -98128.50 9,629,202,5122007 40,085,528 1,503,944 1,538,711 38,679,713 40,218,423 -132895.00 17,661,081,0252008 41,655,880 1,570,352 1,538,711 40,218,423 41,757,134 -101253.50 10,252,271,2622009 43,295,844 1,639,964 1,538,711 41,757,134 43,295,844 - -
6,154,842 93856387002011 1,538,711 43,295,844 44,834,5552012 1,538,711 44,834,555 46,373,265
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2013 1,538,711 46,373,265 47,911,9762014 1,538,711 47,911,976 49,450,6862015 1,538,711 49,450,686 50,989,397
SD 96,879.51
Arithmetic Geometric Curve Supply
year Y%
increase Yi+1 1+r YC Y-YC (Y-YC)^2
2005 37,141,002 38,756,6181.04 37,351,877
-210875 44,468,330,179.34
2006 38,581,584 3.73% 40,214,1901.04 38,756,618
-175034 30,637,043,333.36
2007 40,085,528 3.75% 41,726,5781.04 40,214,190
-128662 16,553,810,966.46
2008 41,655,880 3.77% 43,295,8441.04 41,726,578 -70698 4,998,153,888.07
2009 43,295,844 3.79%
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15.04% 24,164,334,591.81
2011 43,295,8441.04 44,924,128
2012 44,924,1281.04 46,613,649
2013 46,613,6491.04 48,366,710
2014 48,366,7101.04 50,185,700
2015 50,185,7001.04 52,073,100
SD 155,448.82
Statistical Straight Line Supply
year Y XX^2 XY a b bx YC Y-YC (Y-YC)^2
2005 37,141,002 -5 25 -185705010 40,961,438 786,458 -393229037,029,14
8111,85
41251142384
42006 38,581,584 -3 9 -115744752 40,961,438 786,458 -2359374 38,602,06 -20480 419413236
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4
2007 40,085,528 -1 1 -40085528 40,961,438 786,458 -78645840,174,98
0 -89452 8001595558
2008 41,655,880 1 1 41,655,880 40,961,438 786,458 786,45841,747,89
6 -92016 8466888170
2009 43,295,844 3 9129,887,53
2 40,961,438 786,458 2,359,37443,320,81
2 -24968 623388659
2010 45,008,788 5 25225,043,94
0 40,961,438 786,458 3,932,29044,893,72
8115,06
01323884743
2Sum 245,768,626 70 55,052,062
7210259483
2011 7 49 40,961,438 786,458 5,505,20646,466,64
4
2012 9 81 40,961,438 786,458 7,078,12248,039,56
0
201311
121 40,961,438 786,458 8,651,038
49,612,476
201413
169 40,961,438 786,458 10,223,954
51,185,392
201515
225 40,961,438 786,458 11,796,870
52,758,308
SD 84,913.25
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Statistical Parabolic Supply
year Y X X^2 X^4 XY X^2Y a b bx c cX^2 YC Y-YC Y-YC^2
2005 37,141,002 -5 25 625 -185705010 928,525,050 40,862,173 786,458 -3932290 8,508 212,711 37,142,593 -1591 2,532,417.56
2006 38,581,584 -3 9 81 -115744752 347,234,256 40,862,173 786,458 -2359374 8,508 76,576 38,579,374 2210 4,882,269.03
2007 40,085,528 -1 1 1 -40085528 40,085,528 40,862,173 786,458 -786458 8,508 8,508 40,084,223 1305 1,703,099.57
2008 41,655,880 1 1 1 41,655,880 41,655,880 40,862,173 786,458 786,458 8,508 8,508 41,657,139 -1259 1,585,152.94
2009 43,295,844 3 9 81 129,887,532 389,662,596 40,862,173 786,458 2,359,374 8,508 76,576 43,298,123 -2279 5,191,952.86
2010 45,008,788 5 25 625 225,043,9401,125,219,7
00 40,862,173 786,458 3,932,290 8,508 212,711 45,007,174 1614 2,606,148.98
Sum245,768,62
6 0 70 1414 55,052,0622,872,383,0
10
3,083,506.82
2011 7 49 40,862,173 786,458 5,505,206 8,508 416,913 46,784,292
2012 9 81 40,862,173 786,458 7,078,122 8,508 689,183 48,629,478
2013 11 121 40,862,173 786,458 8,651,038 8,5081,029,5
21 50,542,732
2014 13 169 40,862,173 786,45810,223,95
4 8,5081,437,9
26 52,524,053
2015 15 225 40,862,173 786,45811,796,87
0 8,5081,914,3
98 54,573,441
SD 1,755.99
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NOTES AND SCHEDULES
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NOTE 6
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PERMITS, FORMS AND LICENSES
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BOOK REFERENCE
Medina, Roberto G. Engineering Management:
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Published and Distributed by: Rex Bookstore
Sherman, Donald, PhD Engineering Management and Proces. Third Edition
Published and Distributed in the Philippines by: KEN Incorporated
Niebel, Benjamin and Frievalds, Andris. Method, Standards, and Work Design. International Edition
Distributed by: The Mc-Graw-Hill Companies
Cateora, Philip R. and Graham, John I. International Marketing. Eleventh Edtion
Distributed by: The Mc-Graw-Hill Companies
Noe, Raymond A. and Hollenbeck John R. Human Resource Management. Fourth Edition
Distributed by: The Mc-Graw-Hill Companies
Valencia, Edwin G. and Roxas, Gregorio F. Basic Accounting. Second Edition
Distributed by: Valencia Educational Supply
Lind, Douglas A. and Marchal, William G. and Mason, Robert D. Statistical Techniques in Business and Economic. Eleventh Edition
Distributed by: The Mc-Graw-Hill Companies
De Leon, Emmanuel B. Industrial Psychology
Published and Distributed by: Rex Bookstore
Maynard, Harold B. Facilities Planning and Design
Published and Distributed by: Rex Bookstore
Baker, Richard E. and Lembke, Valdean C. and King, Thomas E. Financial Accounting. Fifth Edition
Distributed by: The Mc-Graw-Hill Companies
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http://www. Wikipedia, marketing
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http://www.ngkhai.com/pointcebu/facts/lapu.htm
http://www.ngkhai.com/pointcebu/facts/demograph1.htm#PopGrowth
http://www.investorwords.com/4822/supply.html
http://www.quickmba.com/marketing/mix/
http://www.quickmba.com/marketing/product/lifecycle/
http://www.neda.gov.ph/ads/mtpqd/chapters1-6/ch2.htm
http://www.gsn.org/web/webproj/design/prjsite.htm
www.earth.google.com
http://www.gsn.org/web/webproj/design/prjsite.htm
www3.interscience.wiley.com/journal/119556147
http://www.hse.gov.uk/comah/sragtech/techmeasplantlay.htm
http://www.hse.gov.uk/comah/sragtech/techmeasplantlay.htm
http://chinashoemachine.en.alibaba.com/aboutus.html )
http://www.alibaba.com/product- gs/203363730/High_Effective_and_Universal_Grinder_grinding.html
http://www.fixturesgroup.com/content.php?parent=slatwall_acrylic_trays&type=products&parent_menu_name=Slatwall%20Acrylic%20Display%20Trays&title=Divided%20Acrylic%20Bin%20Display&product_id=703
http://www.homebrewunderground.com/equipment/
http://www.etsy.com/listing/46618123/vintage-tupperware-measuring-cups-set-of
http://barsupplies.com/measuring-spoons-p-549.html?osCsid=h6ggmmhmh1l4mfo97vm450sm32
http://www.hotplates.com/Kaiser-Bakeware-660554-KSR1388.htm
http://www.businessdictionary.com
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http://www.thepoultrysite.com/articles/979/maintaining-egg-shell-quality;
http://www.rehab.research.va.gov/jour/70/7/2/swanson.pdf
CURRICULUM VITAE
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Alvin T. Baring
Soong Center, Mactan, Lapu-Lapu City
Email Add: [email protected]
Mobile #: 09339536271
PERSONAL BACKGROUND: Age : 21 years old
Birthday : September 21, 1989
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Birthplace : Punta Engaño, Lapu-Lapu City
Civil Status : Single
Religion : Roman Catholic
Nationality : Filipino
Fathers name : Jerry B. Baring
Mothers name : Dioscora T. Baring
EDUCATIONAL ATTAINMENT:
Tertiary: University of Cebu 2005- 2010
Lapu-lapu and Mandaue
A.C Cortes Ave. Looc, Mandaue City
Secondary: Punta Engaño High School 2000- 2005
Punta Engaño, Lapu-lapu City
Primary: Punta Engaño Elementary School 1994- 2000
Punta Engaño, Lapu-lapu City
WORKING EXPERIENCE:
Office Assistant Coral Point Incorporated.
Ibo, Marina Mall, Lapu-Lapu City
March-May 2010
SEMINARS ATTENDED:
Supervisory Seminar
UCLM, Annex Building AVR
December 12, 2009
IE Profession Seminar
UCLM, Annex Building AVR
Business Entrepreneurship Seminar
UCLM, New Building AVR
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CHARACTER REFERENCES:
Efrain T. Pelaez Jr.
President,
Coralpoint Educational Foundation Incorporated
President,
Mactan Chamber of Commerce and Industry
Coralpoint, Punta Engaño, Lapu-Lapu City
(340-3214)(09175495701)
Engr. Jose Y. Monzon
Secretary General,
Mactan Island Chamber of Commerce and Industry
Poblacion, Lapu-Lapu City
(09209089718)
Engr. Teodorico Mejaran Jr.
Industrial Engineer, Instructor
UCLM
Contact #: 09206713702
Bascon, Raoul Julius Basea
Sacred Heart Village, Gun-ob, Lapu-Lapu City
Email Add: [email protected]
Mobile #: 09339480457
PERSONAL BACKGROUND:
Age : 21 years old
Birthday : July 29, 1989
Birthplace : Cebu Community
Hospital Cebu City
Civil Status : Single
Religion : Roman Catholic
Nationality : Filipino
Fathers name : Raul Y. Bascon
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Mothers name : Cristina R. Bascon
EDUCATIONAL ATTAINMENT:
Tertiary: University of Cebu 2006- 2010
Lapu-lapu and Mandaue
A.C Cortes Ave. Looc, Mandaue City
Secondary: Holy Cross College 2005-
2006
Carigara, Leyte
Advance Instute of Technology
2002-2005
Primary: City Central School
2000-2002
Opon, Lapu-Lapu City, Cebu
Saint Alphonsus Catholic School
1996-2000
Opon, Lapu-Lapu City, Cebu
SEMINARS ATTENDED:
Supervisory Seminar
UCLM, Annex Building AVR
December 12, 2009
IE Profession Seminar
UCLM, Annex Building AVR
Business Entrepreneurship Seminar
UCLM, New Building AVR
CHARACTER REFERENCES:
Hon. Mario Y. Amores, M.D.
Former Vice Mayor
Lapu-Lapu City
495-4857
Mrs. Shankee Valiente
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Manager
Pancake House Inc.
Tel. No.: (632) 758-5555
Engr. Teodorico Mejaran Jr.
Industrial Engineer, Instructor
UCLM
Contact #: 09206713702
Frend E. Cabahug
A. Tumulak St. Gun-ob Lapu- lapu City
Email Add: [email protected]
Mobile #: 09235591730
PERSONAL BACKGROUND:
Age : 20 years old
Birthday : November 22, 1989
Birthplace : Pasay City, Manila
Civil Status : Single
Religion : Roman Catholic
Nationality : Filipino
Fathers name : Alfredo I. Cabahug
Mothers name : Anita E. Cabahug
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EDUCATIONAL ATTAINMENT:
Tertiary : University of Cebu 2005- 2010
Lapu-lapu and Mandaue
A.C Cortes Ave. Looc, Mandaue City
Secondary: St. Alphonsos Cathololic School 2000- 2005
Lapu-lapu City
Primary: St. Alphonsos Catholic School 1994- 2000
Lapu-lapu City
WORKING EXPERIENCE:
On-the-job Training KIMWA Construction 2008-2009
Development Corporation
Subang-daku, Mandaue City
SEMINARS ATTENDED:
5th General Membership Meeting and 1st JPIIE Visayas Student Convention
University of San Carlos Technological Center
September 26, 2009
Supervisory Seminar
UCLM, Annex Building AVR
December 12, 2009
Technical Writing Seminar Workshop
UCLM, Annex Audio Visual Room
April 15 and 16, 2010
CHARACTER REFERENCES:
Engr. Oscar S. Abordo
Infrastructure Development Coordinator
Planning and Programming Division
Cebu City Government
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Contact #: 09277657027
Engr. Teodorico Mejaran Jr.
Industrial Engineer, Instructor
UCLM
Contact #: 09206713702
Mr. Dominador P. Retardo
Director, Student Affairs
UCLM
Contact #: 09164514561
