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IV. TECHNICAL ASPECT

4.1 Product

The proposed project will offer snacks specifically chips made from taro. Taro
chips are also available in flavors of cheese, sour cream and barbeque while the
banana chips are available in flavors of sour cream, cheese and seasalt.

The business will use equipment to help in the production and will acquire
equipment for the increase in production process. The products will undergo quality
control to ensure that the products offered will be in best quality. Moreover the delivery
the delivery of the said products will be faster compared to its competitor.

4.2 Process

Figure 1. Process Flowchart

1. Purchasing of raw materials

The assigned personnel will receive raw materials from Reyes Satellite Market.
Such as taro, powdered sour cream, cheese and barbeque flavored powder, and
cooking oil. The raw materials will be examined if it’s in good condition and it will be
tested for best quality.

2. Peeling
Peeling of taro then put it in a container with water. Repeat if for two times.
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3. Slicing
The chips pass through a revolving impaler/presser that cuts them into paper-thin
slices. Straight blades produce regular chips while rippled blades produce ridged potato
chips. The slices fall into a second cold-water wash that removes the starch released
when the potatoes are cut.
4. Washing
Wash the taro for five times.
5. Immersing
Immersing the taro in a water with salt and to be put in a cold water right after.
6. Frying

The sliced chips will be put in a frying pan after the oil is ready for cooking. It will
only take minutes for the raw materials will be cook.

7. Dewatering of Chips

After the chips are cook, then it will be put in an area where in the chips must be
dry and ready for putting the flavored powder.

8. Flavoring

Taro chips are put into a machine for putting specified flavored powder.

7. Packaging

The chips will be put in a specific bag according to its grams and flavor as well.
This will be the final product and it is ready for distribution or to be keep in storage
room.

8. Scaling

The finish product has a specified grams to be follow such as, 60grams and 100
grams.

9. Sealing

The finish product must have sealed before it will deliver to the retailers.

4.3 Machinery and Equipment

The business will acquire new machinery and equipment. The peeling, the slicing
and the flavoring machine will help increase the production at smaller use of time. It will
make the business faster to interact with the customer for orders and it will be an
opportunity to the part of the business because of the speed of the process and of this
equipment. The weighing scale, the 36L 1 pan and the Styrofoam will be used as part of
the production.
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The machine that will be use in the production are the washing and peeling
machine, potato slicing/cutting machine and the chips flavoring. The dimension of the
washing and peeling machine is 490x330x460mm which can produce 20KG/H. The
potato slicing/cutting machine is 450x310x500mm which it can also produce 20KG/H.
The chips flavoring is 94x56x83 cm which can produce 20 kg per batch. Lastly the de-
oiling machine which is 490x350x460mm which can produce 20KG/H. These machines
are available online where you can inquire or send message to them.

Table 8. Machinery and Equipment

Quantity Amount Total
Fixed Assets
Building 1 217,533 217,533
Machinery and Equipment
Peeling Machine 1 12,000.00 12,000.00
Slicing/Cutting Machine 1 15,000.00 15,000.00
De-oiling Machine 1 18,000.00 18,000.00
Flavoring Machine 1 21,000.00 21,000.00
Weighing Scale 1 990.00 990.00
361 L Pan 2 3,500.00 7,000.00
Double Burner 1 800.00 800.00
Table (Stainless) 2 6,500.00 13,000.00
Styrofoam Box 4 1,200.00 4,800.00
Sealer 2 1,490.00 2,980.00
Chairs 5 980.00 4,900.00
Ceiling fan 3 1,595.00 4,785.00
322,788.00
4.4 Plant Capacity
The business will use machines as operating units, one (1) washing and peeling
machine, one (1) slicing machine, one (1) seasoning/flavoring machine and one (1) de-
oiling machine. The washing and peeling machine has 20 kilogram capacity per hour.
The slicing machine has 20 kilogram capacity per hour. The seasoning machine has a
capacity of 20 kilogram per hour. The de-oiling machine has a capacity of 20 kilogram
per hour. The maximum output of the business will highly depend on the capacity of the
machineries used. The table on the next page shows the computation of the rated
capacity of the proposed project.
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Table 9. Rated Capacity (in kilos)

Particulars
Capacity of machine in kg per hour 20
Multiply by: Working hours per day 2
Rated Capacity per day (in kg) 40
Multiply by: No. of days in a week 4
Rated Capacity per week (in kg) 160
Multiply by: No. of weeks in a month 4
Rated Capacity per month (in kg) 640
Multiply by: No. of months in a year 12
Rated Capacity in a year (in kg) 7,680

Capacity Utilization
The capacity utilization rate of the business is assumed at 70%during lean
season (April-May) and increases to 80% during peak season (June-March). The
capacity on June to March is higher compared to April to May since there are more
students who are willing to buy the products during that season. Furthermore, the said
capacity utilization is assumed to increase 5% annually considering that the products
will gain its popularity in the market. The table below shows the projected capacity
utilization of the business.

Table 10. Projected Capacity Utilization

Particulars Year 1
April-May June-March
Capacity of machine in kg per hour 20 20
Working hours per day 2 2
Rated Capacity per day 40 40
Capacity Utilization 70% 80%
Total Utilized Capacity per day (kg) 28 32
No. of working days 4 4
Total Utilized Capacity per Month (kg) 112 128
Total Utilized Capacity per Year (kg) 1,344 1,536

4.5 Location
The business is located at Prk. Mapailubon, San Isidro General Santos City. It is
near and along Mabuhay Road. The parcel of land is already owned by Mrs. Dolores
Palma which makes it easier to increase the production of the business. It is a favorable
location to easily transport the products to the target market. Furthermore, there is a
stable electricity and water to support the needs in the production of the products. The
place is near the main canal which makes it easier to dispose the waste.
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4.6 Building
The business will construct a concrete building which has an area of 78m2. The
construction of the building will cost Php 217,533.00 having an estimated useful life of
25 years. Permit and licenses for the building costs Php 10,000.00. The building will
serve as the processing plant of the products. (See the attachment for the building
layout.)

4.7 Materials

The business will purchase its supplies of taro and banana, cooking oil, sea salt
and cheese powder from Reyes Satellite Market. Other flavoring ingredients such as
powdered sour cream and barbecue will be purchased from LAPCO Enterprises. The
raw materials will be purchased every order of the customers. In addition, the business
will also use foil packaging to be purchased at MAPI Enterprises.

The tables below show the cost of the materials that the business will purchase
and is assumed to increase by 10% per annum.

Table 11. Direct Materials

UNIT(kg) PRICE MONTHLY Year 1 Year 2 Year 3 Year 4
Taro 50
10.00 16,000.00 192,000.00 211,200.00 232,320.00 255,552.00
Banana 25
13.00 10,400.00 124,800.00 137,280.00 151,008.00 166,108.80
Seasoning 8
300.00 9,600.00 115,200.00 126,720.00 139,392.00 153,331.20
Cooking oil 10
46.00 14,720.00 176,640.00 194,304.00 213,734.40 235,107.84
Packaging 560
(pouch 50g) 5.50 3,080.00 36,960.00 40,656.00 44,721.60 49,193.76
Packaging 1400
(COPP 60g) 1.30 7,280.00 87,360.00 96,096.00 105,705.60 116,276.16
Transportati
on Expense 2,000.00 24,000.00 26,400.00 29,040.00 31,944.00
Total
63,080.00 756,960.00 832,656.00 915,921.60 1,007,513.76

4.8 Labor
The proposed project will hire five (5) workers in which four (4) of them will be
women individuals who do not have occupation. The proposed project will have two
cooks, two packers and a delivery man.
The tables below show the computation for the salaries and wages. It is assumed
to increase by 5% annually.
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Table 12.1 Direct Labor

Particulars No. of Workers Daily rate Working Days Monthly

Cook 2 250.00 24 12,000.00

Packers 2 250.00 24 12,000.00
Add: Training of Personnel 2 24 5,000.00
Meal Allowance 50.00 24 1,200.00
Total 550.00 30,200.00

Table 12.2 Indirect Labor

Particulars No. of Workers Daily rate Working Days Monthly

Delivery Man 1 250.00 15 3,750.00
Add: Meal Allowance 50.00 15 1,500.00
Total 395.00 5,250.00

4.8 Utilities

The business’ utilities expense will be on gas, electricity and water. It is

estimated to utilize electricity amounting to 3,786.99 and water expense amounting to
Php 400.00 monthly.

The table below shows the utility expense of the business. It is assumed to
increase by 10% annually. See Schedule 5 for the computation of electricity expense.

Table 13. Utilities Expense

Particulars Monthly Year 1 Year 2 Year 3 Year 4

Electricity 3,786.99 45,443.87 49,988.25 54,987.08 60,485.79

Water 400 4,800.00 5,280.00 5,808.00 6,388.80
LPG (Gasul) 2,130 25,560 28,116.00 30,927.60 34,020.36
Total 6,316.99 75,803.87 83,384.25 91,722.68 100,894.95

4.10 Environmental Safeguards

The waste to be generated by the business will be segregated as to

biodegradable and non-biodegradable. Wastes from taro will be used as fertilizers.
Furthermore, the waste will be collected by the garbage collector every month. The
water waste will go to the main canal.