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I. PRODUCT a. HISTORICAL BACKGROUND Over time, metal can become dulled or corroded. With regular treatment any metalwork, be it garden furniture or your car, can be kept looking good as new. The best way to do this is through regular application of a metal polish that protects against rust and other corrosion. Metal polishes remove any oxidation, hard water or other build up on the surface of metal objects. Some metal polishes are liquid, which is applied with a clean cloth. Others come in paste form1. Metal polish is formulated to remove tarnish and lubricate the surface of the metal piece so that it can be buffed back to its original shine. Some metal polish is abrasive and can remove small pits and heavy corrosion. Polish that contains rubbing compound can smooth away scratches and small impurities that have entered into the top layer of the metal. Although the chemicals and grit contained in the metal polish will perform much of the desired cleaning, they must be used with polishing cloths or wheels and worked into the surface with a rubbing motion3. Besides consistency, the paste has the most concentration of cleaning power. The paste also has an added ingredient for longer lasting protection. This protection will keep your shine the longest. The liquid is not as concentrated as the paste, but will give you comparable polishing results on most surfaces. The protection will not last as long as the paste, but it will last longer than most other liquids on the market today. The liquid polishes cover more area for less money, so they are the best choice for large areas like boats or RVs, and areas that you must maintain on a more regular basis, like brass rails or sinks. Many people find the liquids easier to work with because of the spread-ability2. Ecologically friendly, or "green," polishing products are growing in popularity as people look for ways to keep toxins out of landfills and work with products that carry fewer adverse reactions to the skin and eyes. EMI Industries

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produces a metal polish made from food products that claims to remove stains and bring the shine back to any metal. Flitz makes metal polishing products made of beeswax and carnauba.
Resource:
1 2

http://www.ehow.com/how_8325284_use-metal-polish.html#ixzz2djkf51DS http://www.flitz.com/faqs/

I. http://www.ehow.com/about_4798630_metal-polish.html#ixzz2djl2s6AT

b. PRODUCT NAME IML Co. produces metal polish with the brand name, Metacleene, a product under the family brand, Eco & Eco. Metacleene is a neologism that means a brand new clean, coined after the Greek prefix meta (change) and a divergent spelling of the term clean. c. PRODUCT DESCRIPTION Metacleene Metal Polish will be available in a liquid form. It will be packaged in a plastic spray bottle and comes at 250 mL. Metacleene will feature qualities that will involve it to be useful for domestic, personal and industrial usage.

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D. PACKAGING

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E. ECONOMIC USES OF THE PRODUCT Many commercial metal polishes and metal cleaners contain some pretty harsh chemicals the ones that are designed to remove rust and tarnish are the most toxic and they are not what people want to breathe in. In using pineapple peelings as raw materials for metal polish, this will promote usability of pineapple wastes into something remarkable and ecologically friendly product. II. MANUFACTURING PROCESSES AND FACILITIES A. OUTLINE OF PROCESS FOR MAKING OF METAL POLISH Raw Materials Preparation - involves collection of all the materials to be used Citric Acid Preparation - involves extraction of the material, mixing chemicals, heating and cooling, and filtering to collect solid citric acid. Metal Polish Solution Preparation involves mixing of raw materials, temperature concentration. Finishing involves pouring to packaging, capping, labeling.

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B. FLOW PROCESS OUTLINE

Description 1. Pineapple peelings preparation 2. Cleaning 3. Weighing 4. Load to mixer 5. Extraction of juice 6. Mixing 7. Heating 8. Cooling 9. Filtering 10. Collection of citric acid 11. Mixing 12. Cooling 13. Pouring 14. Capping 15. Inspection 16. Testing 17. Packaging 18. Proceed to storage 19. Storing 20. Dispatching

Symbol

Remarks 1 P P P P P P P P P P P P P P P P NP NP P

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C. FLOW PROCESS CHART

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D. DESCRIPTION OF PROCESSES Pineapple Peeling Preparation Preliminary Treatment of Pineapple Peelings Pineapple peelings are washed and cleaned for removal of unnecessary elements

Citric Acid Preparation

Pineapple Peeling Extraction Pineapple peelings undergo the extraction process through the extraction machine.

Calcium Citrate Calcium citrate is collected by mixing the pineapple peeling extract and calcium hydroxide, treated under heating then cooled down. The solution will be strained through filtering.

Citric Acid The filtered calcium citrate will be treated with sulfuric acid on a temperature of 150 degrees Fahrenheit. Carbon will evaporate from the solution and will leave solid citric acid.

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Metal Polish Preparation

After collection of citric acid, mixing of key ingredients is done for the preparation of the polish.

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E. PRODUCTION CAPACITY NO. ELEMENTS BASIC TIME (minutes) 25 5 5 3 4 10 10 10 5 3 3 10 5 1 1 10 10 7 6 133

1 Machine Start-up Pineapple peelings 2 preparation 3 Cleaning 4 Weighing 5 Load to mixer 6 Extraction of juice 7 Mixing 8 Heating 9 Cooling 10 Filtering 11 Collection of citric acid 12 Mixing 13 Cooling 14 Pouring 15 Capping 16 Inspection 17 Testing 18 Packaging 19 Proceed to storage Total

Standard Time Computation:

Standard Time = (Ave.Basic Time) X (Rating Factor + Allowance Factor)

Ave. Basic Time = 133 minutes or 2.22 hours Rating Factor = 100% Allowance Factor = 10%

Standard Time = (2.22 hours) X (1+0.1) = 2.44 hours

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Computation of Capacity per Day:

Capacity/Day = Number of working hours per day / Standard Time *IMLs production line manufactures 480 units of metal polish per cycle, with the time per unit computed as:

Time per Unit = 2.44 hours / 480units = 0.005083 hours/unit Capacity/Day (Weekdays) = (7.5 hours) / (0.005083 hours/unit) = 1475 units/day Capacity/Day (Saturdays) = (3.5 hours) / (0.005083 hours/unit) = 688 units/day

Computation of Production Capacity:

Production Capacity = (No. of working hours per year) X (Capacity per day) No. of Working days in year 2014= 313 No. of Working hours in year 2014= 2,257.5 hours or 301 days No. of Legal Holidays in year 2014= 12

Production Capacity = [(1475 x 249) + (688 x 52)] = 403,051 units

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F. PRODUCTION SCHEDULE IML, Inc. runs at a production schedule according to working calendar. The production of the company operates Mondays through Fridays, from 8:00 a.m. to 5:00 p.m., and on Saturdays from 8:00 a.m. to 12:00 noon. The break time per day accounts ninety-minute of the operation hours, with an hour for the lunch break at 12:00 noon to 1:00 p.m., and a fifteen-minute break time from 10:00 a.m. to 10:15 a.m. for morning break, and another fifteen-minute from 3:00 p.m. to 3:15 p.m. for the postprandial break. The company implements no-work policy on holidays, but pays double to its employees if necessary operations within these days are demanded. In a normal whole year, the plant operates for about 301 days. G. RAW MATERIALS COSTING 1. Raw Materials
Materials Needed and Supplier Mineral Oil PHP 65.00/50mL PHP 100.00/100mL EsScential Fragrances Contact No.: 09192528431/09435898219

Alcohol Ethoxylate PHP 76,361.48 per metric ton Telephone: 63-2-6383697 Fax: 63-2-6378705 Address: Unit 1604 Jollibee Plaza Condominium, F. Ortigas Jr. Road, Pasig City

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Calcium Hydroxide PHP 6,748.22 per metric ton La Gauchel Group Mr. Dean Pasq Telephone: 63-92-750325 Address: MEZ-1 Ext 3rd St., Lapu Lapu City, Cebu

Sodium Lauryl Ether Sulfate PHP 60,378.85 per metric ton Hancole Corporation Mr. Marco Reyes, Sales Manager Telephone: 63-2-4708806 Fax: 63-2-3382722 Address: Unit 1502, Galleria Corporate Center, EDSA, Quezon City Glycine PHP 63,930.54 per metric ton Zhengzhou Ruikang Enterprise Co., Ltd. Mr. Kevins Wei, Sales Manager Telephone: 86-371-63939471 Fax: 86-371-63828723 Address: 2016 One Meter Sunshine Apartment, No. 9, Sanquan Road, Jinshui Dist., Zhengzhou, Henan, China Sulfuric Acid PHP 495.00 PRG Cebu Chemicals 19 English St. V. Rama Avenue Cebu City, Philippines, 6000

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Pineapple Peelings PHP 0.50/kg Del Monte Philippines, Inc. Tel: +632 856 2888 Fax: +632 856 2590 Address: 9th Avenue corner 30th Street, Bonifacio, Global City, Taguig City, 1634 Philippines Piakamasarap Corporation HR Department Telephone: (632) 418-0556 E-mail: jobs@marcapina.com 23 P. Dela Cruz St., San Bartolome,Novaliches, Quezon City, 1123, Philippines

2. Raw Materials Costing a) Direct Materials

Materials Pineapple Peelings Alcohol Ethoxylate Calcium Hydroxide Sodium Lauryl Ether Sulfate Mineral Oil Sulfuric Acid Glycine TOTAL COST / YEAR

Unit kg mL ml mL mL g g

Qty. 6 kg 25mL 3.7mL 25mL 2.5mL 70g .125g

Cost .50/kg 0.076/mL 0.007/mL 0.060/mL 100/100mL 484/L 0.078/g

Cost Per Unit 3 1.9 0.0259 1.5 2.5 33.88 0.00975 42.82

Weekday Quantity 8,850 36,875 5,457.5 36,875 3,687.5 103,250 184.375 195,179.38

Saturday Quantity 4,128 17,200 2,545.6 17,200 1,720 48,160 86 91,039.60

Qty Per Week 48,378 201,575 29,833.10 201,575 20,157.50 546,410 1,007.88 1,066,936.48

Cost Per Week 24,189.00 15,319.70 208.83 12,094.50 20,157.50 273,174.44 7.86 345,151.83

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Qty Per Year 2,515,656 10,481,900 1,551,321.2 10,481,900 1,048,190 29,349,320 52,409.5 55,480,696.70 Cost Per Year 1,257,828.00 796,624.40 10,859.25 628,914.00 1,048,190.00 14,205,070.88 408.79 17,947,895.32

b) Indirect Materials

Materials Carton Box 250 mL Plastic Spray Bottle with cap Packaging Tape Total

Unit 48 pcs/box piece in meter; 40m/per roll

Quantity 8397 403,051 100

Unit Cost 1.75 1.00 26.50

Total Cost 14,694.75 403,051.00 2,650.00 420,395.75

TOTAL MATERIALS ORDER 2014 Direct Materials Indirect Materials Total 420,395.75 20,163,080.60 2015 441,415.54 21,171,234.64 2016 463,486.31 22,229,796.36 2017 486,660.63 23,341,286.18 2018 510,993.66 24,508,350.49

19,742,684.85 20,729,819.10 21,766,310.05 22,854,625.55 23,997,356.83

H. MARK-UP AND SELLING PRICE

FACTORY OVERHEAD FACTORY OVERHEAD Indirect Materials Indirect Labor (Salaries) Utilities (Production) Rent Depreciation TOTAL 2014 420,395.75 1,599,000.00 283,688.83 90,000.00 190,666.00 2,583,750.58 2015 441,415.54 1,646,970.00 297,873.27 90,000.00 190,666.00 2,666,924.81 2016 463,486.31 1,696,379.10 312,766.94 90,000.00 190,666.00 2,753,298.35 2017 486,660.63 1,747,270.47 328,405.28 90,000.00 190,666.00 2,843,002.39 2018 510,993.66 1,799,688.59 344,825.55 90,000.00 190,666.00 2,936,173.80

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PRODUCT Metal Polish MARK-UP (50% INCLUSIVE OF 12% VAT) 2014 2015 2016 2017 86.68 94.11 93.65 93.21 2018 92.78

I. MACHINERIES AND EQUIPMENT 3. Production Line Machine

Machines

Extracting Machine

Capacity: 1-2.5 ton/hr Power: 1.1 - 11 kW Voltage: 380V Price: PHP 88,000.00

Mixing Machine

Capacity: 10000L Power: 1.27 kW Price: PHP 225,000.00

Filtering Machine

Capacity: 450t/hr Rated Flow: 450t/hr Price: PHP 88,000.00

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Cooling and Heating Machine

Power:1.2kW Capacity: 480t/hr

Filling And Capping Machine

Weight: 600kg Power Consumption: 1.2kW Price: PHP 65,000.00 Capacity: 240/hr

Labeling Machine

Price: PHP 45,000.00 Power: 1.5 kW Weight: 500 kgs

4. Other Equipment
Equipment

Weighing Scale

Capacity: 0.5 kg - 2 kg Price: PHP 6,600.00

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Drum Hand Truck Cradle

Capacity: 1000 lbs Price: 10,550.00 Polyolefin wheels resist chemicals that may damage rubber

J. MACHINERY COSTING

PRODUCTION MACHINERIES AND EQUIPMENT MACHINERIES AND EQUIPMENT Extracting Machine Mixing Machine Filtering Machine Heating and Cooling Machine Filling and Capping Machine Labeling Machine Fire Extinguisher Weighing Scale Exhaust Fan Drum Hand Truck Cradle Total Useful Life 10 10 10 10 10 10 10 10 5 5 Cost Per Unit (PHP) 88,000.00 225,000.00 88,000.00 300,000.00 65,000.00 45,000.00 3,950.00 6,600.00 3,520.00 10,550.00 835,620.00 Qty. 1 2 1 1 2 1 10 2 4 3 Total Cost 88,000.00 450,000.00 88,000.00 300,000.00 130,000.00 45,000.00 39,500.00 13,200.00 14,080.00 31,650.00 1,499,430.00 Annual Depreciation 8,800.00 45,000.00 8,800.00 60,000.00 13,000.00 4,500.00 3,950.00 1,320.00 2,816.00 6,330.00 Total Annual Depreciation 8,800.00 45,000.00 8,800.00 30,000.00 26,000.00 4,500.00 39,500.00 2,640.00 11,264.00 18,990.00 195,494.00

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K. PLANT LOCATION The IML Co.s plant will be situated at Elisco, Rd., Kalawaan, Pasig City. The area is flood-free and large enough to accommodate the operations of the company. It is a strategic location where other commercial organizations operate as well.

1. Actual Plant Site

The plant selected is situated in A. Sandoval Ave., Pasig City. The lot area is at 681 square meters, with covered area at 600 square meters. Monthly rental is 90,000.00 Pesos,

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2. Plant Lay-out

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III. STRUCTURE AND RENOVATION COSTING

A. LABOR
Area in sq. meters 500 100 600 Fee per square meter 23.00 22.00 Total Cost 11,500 2,200 13,700.00*

*Computation based on the National Building Code of the Philippines (PD 1096)

B. FLOORING
Unit Cost (PHP) 18.75

Description Alicia Green Tile (20 cm x 20 cm) Total

Quantity

Total Cost

3696

69,300.00 69,300.00

C. DOORS & WINDOWS

Unit Cost (PHP) 220 1,350.00 15 .05 159.75

Description Glass Windows Panel Doors Hinge Screw Door knob Total

Quantity 60 ft2 23 sets 46 pieces 368 pieces 23

Total Cost 13,200.00 31,050.00 690.00 18.40 3,674.25 48,632.65

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D. PAINTING
Unit Cost (PHP)

Description Lacquer thinner Masonry Primer Masonry Topcoat Wood Primer Wood Topcoat Brush Roller Total

Quantity

Total Cost

8 can 5 can 5 can 4 can 5 can 5 pcs. 4 pcs.

30.00 350.00 350.00 435.00 420.00 35.00 60.00

240.00 1,750.00 1,750.00 1,740.00 2,100.00 175.00 240.00 7,995.00

E. ELECTRICAL MATERIALS
Unit Cost (PHP)

Description Socket Outlet Panel Board Circuit Breaker Fluorescent Bulb Electric Wire (m) Total

Quantity

Total Cost

19 pieces 1 piece 1piece 33 pieces 350 m

21.00 1,000.00 350.00 275.00 7.40

399.00 1,000.00 350.00 9,075.00 2,590.00 13,414.00

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F. PLUMBING/SANITARY
Unit Cost (PHP)

Description Lavatory Faucet Toilet HDPE Pipe (m) Total

Quantity

Total Cost

7 pieces 7 pieces 7 pieces 200

720 2,390 370 8.50

5,040.00 16,730.00 2,590.00 1,700.00 26,060.00

G. TOTAL RENOVATION COST

Activities Renovation Labor Electrical Materials Flooring Painting Doors and Windows Plumbing/Sanitary Cost

13,700.00 13,414.00 69,300.00 7,995.00 48,632.65 26,060.00

Total renovation cost 109,801.65

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IV. UTILITIES A. FUEL CONSUMPTION

Model: Fuso Canter FE71 Mileage: 30,000 km Speed: 129km/hr Price: PHP 1,120,000.00

Transportation Expense Item Delivery Truck Total Schedule Daily Fuel Diesel Price per liter 43.52 Daily Consumption Consumption Consumption per Month per Year (L) 5 120 1505 Total Cost 65497.6 65497.6

B. ELECTRIC SUPPLY The Manila Electric Company, also known as MERALCO or Meralco, is the Philippines' largest distributor of electrical power. The word MERALCO is an acronym for Manila Electric Railroad And Light Company, which was the company's original name from 1903 to 1919. MERALCO is Metro Manila's only electric power distributor and holds the power distribution franchise for some 22 cities and 89 municipalities, including the whole of Metro Manila and Mega Manila region.

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DESCRIPTION POWER RATING (kW) 1.1 1.27 0.75 1.75 1.2 1.5 0.092 0.04 0.225 0.746 0.175 0.175 RATE / kWh 8.74 8.74 8.74 8.74 8.74 8.74 8.74 8.74 8.74 8.74 8.74 8.74 QTY HOURS USED PER DAY 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 7.5 DAILY CONSUMPTION MONTHLY CONSUMPTION ANNUAL CONSUMPTION

Extracting Machine Mixing Machine Filtering Machine Cooling and Heating Machine Filling and Capping Machine Labeling Machine Exhaust Fan Flourescent Lamp Computer Desktop Air Conditioning Unit Xerox Machine Printer TOTAL

1 2 1 1 2 1 4 35 13 6 2 5

72.11 166.50 49.16 114.71 157.32 98.33 24.12 91.77 191.73 293.40 22.94 57.36 1,339.45

1,730.52 3,995.93 1,179.90 2,753.10 3,775.68 2,359.80 578.94 2,202.48 4,601.61 7,041.64 550.62 1,376.55 32,146.77

20,766.24 47,951.14 14,158.80 33,037.20 45,308.16 28,317.60 6,947.25 26,429.76 55,219.32 84,499.72 6,607.44 16,518.60 385,761.23

C. WATER SUPPLY Manila Water formally took over operations for the East Zone in 1997. This is comprised of Pasig, Taguig, Makati, Mandaluyong, Cubao & Balara (Quezon City), Marikina, San Juan and AntipoloRizal. All of these suffered from crippling water loss problems, and resorted to buying water from sources that charged ten to twenty times more than the normal cost. Manila Water began its rehabilitation plan by connecting these areas effectively. Water pipes were added and repaired, and illegal connections were thoroughly acted upon and remedied. A laboratory was established to ensure that the water delivered is consistently clean and drinkable straight out of the tap. Reservoirs were improved upon to ensure that water will be available in case of emergencies.

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Water Bill Monthly Bill Basic Charge FCDA Environmental Charge Sewer Charge MSC VAT 2660.052 (-13.19) 529.37 0 3 381.51 Total Bill 3560.74

WATER CONSUMPTION VOLUME CONSUMPTION PER DAY (cu.m/ day) 2.95 0.10 3.05 MONTHLY CONSUMPTION 70.8 2.4 73.2 3,560.74 42,728.88 MONTHLY BILL Estimated Annual Water Bill

DESCRIPTION Production Consumption Other: (comfort room, etc.) TOTAL CONSUMPTION

Resource: http://www.manilawater.com/Pages/Index.aspx

D. COMMUNICATION SYSTEM IML chooses the Philippine Long

Distance Telephone Company (PLDT) as its telecommunications and internet provider. PLDT is the largest telecommunications

company in the country, and has proven its quality service through the times.

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SERVICE Telephone and Internet Expense

MONTHLY BILL 4,000.00

ANNUAL BILL 48,000.00

IML will subscribe on the Plan 4000 of PLDT, and comes with a gratis installation of the telephone and internet service. SERVICE Telephone and Internet Expense 2014 48,000.00 2015 48,000.00 2016 48,000.00 2017 48,000.00 2018 48,000.00

Resource: http://pldthome.com/surf/mydsl/about

E. SHIPPING The IML Co. will be employing the service of both Air 21 and FedEx for the shipments of the goods, with Air 21 for the domestic transport of goods while FedEx will serve for the international trade.

1. Domestic From Cebu, Monthly Supply of Sulfuric Acid = 2,185,640 g or 2185.640 kg Monthly Supply of Calcium Hydroxide = 199,332.4 mL or 199.33 L Shipping Cost: 1982.00 Pesos/20 kg Box (with maximum capacity of 25 kg) (199.33 L/25 kg x PhP 1982.00) x 112% = Php 10,595.95 per month (2185.64 kg/25kg x PhP 1982.00) x 112% = Php 194,070.84 per month Sum: Php 10,595.95 + Php 194,070.84 = Php 204,666.79
Resources:

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http://www.air21.com.ph/main/rate_calculator.php

2. International The IML Inc. will be using the service of FedEx for the imports of the raw materials coming from Mainland China.
Raw Materials from Mainland China Glycine (kg) Total Monthly Consumption 4.03152 4.03152 Annual Consumption 52.40976 52.40976

Transportation Charges: Base rate: 492.00 Philippines Pesos Fuel Surcharge: 88.56 Philippines Pesos Total: 580.56 Philippines Pesos Computation of Duties and Taxes for Imported Goods: Total Duties and Taxes = Custom Duty + 12% VAT + CDS + IPF Custom Duty = [Cost of Goods + Freight] x Duty = [Php 408.72 + 580.56 x 12] x 103% = Total Duties and Taxes = (Php 7,584.44) + 12% (Php 7,584.44) + Php 265 + Php 250 = Php 9,009.52
Resource: https://www.fedex.com/ratefinder/standalone?method=getQuickQuote http://customs.gov.ph/references/tax-computation/

3. Total Transportation Cost

Supplier Shipping Location Cebu China Total Monthly Transportation Cost 204,666.79 750.79 205,417.58 Yearly Transportation Cost 2,456,001.48 9,009.52 2,465,010.96

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V. WASTE DISPOSAL The impact of waste disposal is conspicuous in our environment. IML Co. seeks to lessen this by producing quality; resourceful goods that will not only be useful, but will also help in a decline to the number of wastes present in the world. As an organization that promotes a healthy, green community, IML Co. implements a strict policy on environmental concern. This comprises of proper segregation of materials to be labeled as hazardous, biodegradable, and nonbiodegradable wastes. These trash bins will have a plastic bag inside for an easier collection of wastes and their disposal as well. The wastes in the production include only of water waste used for the preliminary cleaning of the pineapple peelings. The water waste is not harmful enough to cause toxicity and will directly be disposed to the companys sewage line.

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