FS Revice 1.0

A FEASIBILITY STUDY ON PERFORATED PLASTIC
BOTTLES AS SUBSURFACE DRAINAGE AND SLOPE PROTECTION
Presented to
The Faculty of College of Engineering and Aviation
University of Perpetual Help System Laguna
City of Biñan, Laguna
In Partial Fulfillment for the
Requirements for the Degree of
Bachelor of Science of Civil Engineering
AGNAS, Laurence Angelo G.

MABALOT II, Alfred Lance N.
MAGPARANGALAN,Joren B.
ODO, Marcres T. Jr.

ANTHONY,Hannah Grace G.
Engr. GONZALES, Teresita B.
Engr. HERNANDEZ, Emiterio C.
November 2017
UNIVERSITY OF PERPETUAL HELP SYSTEM- LAGUNA
Sto. Niño, City of Binan, Laguna
College of Engineering and Aviation

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CHAPTER I
MARKETING ASPECT
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1.1 INTRODUCTION
Natural disasters in the Philippines, such as landslides, occur even more than
before. And landslides are caused by the softening of the soil on sloping areas
usually near the mountains through the infiltration of the rainfall and rainfall runoff.
This is where slope protections come in, such as retaining walls, ripraps, and the
use of geosynthetics such as geotextiles, geogrids, and geocells. Depending on the
status of the soil, the slope protection to be used must be considered as well as the
cost. Geosynthetics, especially geocells, have been specifically used on slopes,
unpaved shoulders, and sometimes, on road works. These geocells are used for
the stabilization of the soil for protection from soil erosion and slope failures.
The use of geosynthetic materials is not new in the Philippines. Research on

different alternatives for geosynthetics, especially geotextiles and geogrids, has
been done for several years in the country. However, lack of research and attention
was given to the innovation of geocells in the Philippines.
Incorporating solid wastes, polyethylene terephthalate (PET) bottles specifically,

as a product for geocells would greatly benefit the country in its endeavor for
reducing solid waste. Aside from cheaper costs compared to the standard and
original product outside the country, the recycled PET bottles are reused, and
manufactured into a different product, which is the geocell. These plastic geocells
will be installed on the subsurface of sloping grounds, which will serve as drainage
for the infiltration of rainfall.
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1.2 OBJECTIVE OF THE STUDY

The overall aim of this study was to identify and collect valid and reliable
information to prove that perforated Polyethylene Terephthalate (PET) (plastic)
bottles may be used as drainage system and slope protection. Within this theme,
the researchers had several specific objectives:
 To identify whether the PET bottle geocells will sell as a product for slope protection
 To minimize soil erosion and to reduce waste plastic bottles
 To provide slope protection and temporary support for vegetation
1.3 PROJECT FIRM AND PRODUCT DESCRIPTION
1.3.1 COMPANY NAME AND LOGO
Figure 1.1: Company Logo
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The manufacturing firm will be named ATOMM, Soil Solutions, with a slogan
“unique. Recycle.”The name of the company, ATOMM, originated from the initials of
the family names of the company owners, namely Agnas, anThony, Odo, Mabalot
and Magparangalan, which was formed in a way that it relates the company’s
products to science and innovation where plastic is made into geocells, wherein
cells may be related to atoms in Science. At the same time, the company makes
good use of the solid wastes collected that are unmindfully disposed of in our
country, which are polyethylene terephthalate (PET) bottles, that will be reused for
soil stabilization, at the same time functioning as a drainage system on slopes, and
that’s where the “Soil Solutions” come in.
The slogan "Unique. Recycle." was used because the company is trying to open a
door for new innovations and unique products that can be made from recycling
plastic bottles.
The company aims to provide a solution to sloping soil disturbances through solid
waste management which would eventually benefit both the environment and the
citizens living near the affected areas. The collection and reuse of plastic materials,
specifically plastic bottles for the company’s product, is one way of solid waste
management which our country needs most since it affects us through its after
effects (blocking of sewer systems if not properly disposed of,
1.3.2 COMPANY MISSION AND VISION
COMPANY MISSION
The ATOMM Soil Solutions seeks to create revolutionary designs by using recycled
plastic bottles, catalyze and reorganize the stability of the ground, especially in
sloping areas, to provide preventive solutions for soil erosion, rainfall infiltration and
soil permeability, and other geotechnical applications dealing in an ethical manner.
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COMPANY VISION
The ATOMM Soil Solutions sees itself as a company which leads the country in
providing preventive solutions for sloping ground problems, by offering beneficial
products not only to its customers, but to the company as well.
1.3.3 CHANNEL OF DISTRIBUTION
Figure 1.2: Channel of Distribution
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The distribution of the product will be from the company, ATOMM, Soil Solutions
(producer), to sales agents, such as stores and offices, representing the company
through branches in different locations which will be the mode of communication
between customers and the company itself. The customer may also opt to buy
directly to the company.
1.3.4 PRODUCT DESCRIPTION
Figure 1.3: Product Logo and Name
The name of the geocell product is TERRAcells. It came from the Latin word
“Terra,” which means Earth and cells which symbolize the geocell, made from
recycled plastic (PET) bottles. In this logo of the product, ‘A’signifies the recycle
icon with the code number 1, which represents that this product is a recycled
polyethylene terephthalate (PET) product. In the next figure, the product is shown to
be applied and sectioned into layers using Sketch Up as representation.
Polyethylene Terephthalate (PET) bottles are used for this product where it aims to
help decrease solid wastes in the Philippines which benefits the community and the
environment.
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The company aims to collect bottles with a straight body of at least 70 mm in height,
in which case, the body of the Mountain Dew Neon Plastic Bottles fits the
specification. Other plastic bottles with a vertical body may also be used if the
standard cut of 70 mm in height x 172 mm in width may be taken from the bottle.
Bottles will then be holed based on the required specification where it will act as
way of connecting the bottles using strong cable ties. One (1) cell will be composed
of four (4) plastic bottles which will be connected with other plastic bottles which
forms the TERRAcells which will come in a standard size of one (1) square meter
when sold. Below will be figures of the conceptual application and the actual
application of the product.
Figure 1.4: Conceptual Application of TERRAcells
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Figure 1.5: Actual Application of TERRAcells
Figure 1.6: Drawing and Design of PET Bottle Geocells
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1.3.5 S.W.O.T. ANALYSIS
STRENGTH
The strength of the company is that it has excellent sales staff with strong
knowledge on the products of the company. The company also has good internal
communications and customer relationship. This company’s products are also
made from recycled materials which benefits the environment through solid waste
management.
WEAKNESS
The product sold by the company has a wide range of competitors. These
competitors sell materials which are also used for slope protection using synthetic,
natural or organic, and/or composite materials. And for the materials used by the
company, not all bottles are applicable. The shape of the bottles to be used for the
product is specific which would decrease the useable bottles.
OPPORTUNITY
The products of the company have room for improvements of the product through
further research on the affectivity of the product, its structure and its uses. The
company also has products which are new, both to the eyes of the company’s
customers and the country. The topography of the country is mountainous which
will be beneficial for the company.
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THREAT
The market locations for the company would eventually run out from time to time
due to the product having an expected lifetime of more than the presently used
materials for slope protection because of the composition and properties of the
material. Supply of the bottles is not equal and will depend on the demand of the
original product (carbonated drinks or bottled water).
dadagdag
1.4 PROPOSED MARKETING STRATEGY
1.4.1 SUPPLY AND DEMAND ANALYSIS

The demand and supply analysis is the part of a research where the demand of a
product is projected using data from previous years and the supply will deeply base
from the computed demand from the projected years. That supply will be the basis
of the current year’s production and whether the company’s income from the
computations will suffice for the current year’s outcomes.
The demand and supply computations that will be provided below are computed
based from the historical data provided by the Municipality of Carmona, Cavite that
will be affected by this research. And through projections, the demand for future
uses of the product is also provided and computed.
1.4.2 STATISTICAL TREATMENT OF DATA
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1.4.2.1 HISTORICAL DATA

Below is the list of area of protected slope in Carmona, General Mariano Alvarez
(GMA), Dasmariñas, and Silang Cavite, both road-side slope and river-side slope
covered by the Department of Public Works and Highways way back from year
2014 up to 2017 with a total area of 49,310.04 square meters. This data can be
considered as the supply and can be use as basis for projecting the area of
protected slope for the next 5 years. On the other hand, the total target area that
need immediate protection was 231,500 square meters from 2014 up to 2017 and
this area can be use as the demand. Therefore, there are 182189.96 square meters
that need immediate protection.
YEAR AREA OF PROTECTED SLOPE (SQ.M)

2014 22,521.46
2015 10,680.74
2016 9,253.44
2017 6,854.40
(SOURCE: from the office of DPWH Carmona Sub-district)
Projection of supply data using Straight Line Method, Semi-log Method, and The
Parabolic Method
1.4.2.2 STRAIGHT LINE METHOD
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Y - Yc
YEAR Y X X² XY Yc
Absolute Squared
2014 22,521.46 -2 4 (45,042.92) 18,879.79 3,641.67 13,261,760.39
2015 10,680.74 -1 1 (10,680.74) 15,603.65 (4,922.91) 24,235,042.87
2016 9,253.44 1 1 9,253.44 9,051.37 202.07 40,832.28
2017 6,854.40 2 4 13,708.80 5,775.23 1,079.17 1,164,607.89
TOTAL 49,310.04 0 10 (32,761.42) 49,310.04 (0.00) 38,702,243.43
1.4.2.3 SEMI-LOG METHOD
Y - Yc
YEAR Y Log Y X X² X Log Y Yc Log Yc
Absolute Squared
2014 22,521.46 4.352597 -2 4 (8.71) 18,407.21 4.264988 4,114.25 16,927,041.56
2015 10,680.74 4.028601 -1 1 (4.03) 14,303.03 4.155428 (3,622.29) 13,120,973.02
2016 9,253.44 3.966303 1 1 3.97 8,635.91 3.936308 617.53 381,345.94
2017 6,854.40 3.835969 2 4 7.67 6,710.39 3.826748 144.01 20,737.82
TOTAL 49,310.04 16.18347 0 10 (1.10) 48,056.54 16.183472 1,253.50 30,450,098.35
1.4.2.4 PARABOLIC METHOD
Y - Yc
YEAR Y X X^2 X^4 XY (X^2)(Y) Yc
Absolute Squared
2014 22,521.46 -2 4.00 16.00 (45,042.92) 90,085.84 21,240.21 1,281.25 1,641,591.31
2015 10,680.74 -1 1.00 1.00 (10,680.74) 10,680.74 13,243.23 (2,562.49) 6,566,365.25
2016 9,253.44 1 1.00 1.00 9,253.44 9,253.44 6,690.95 2,562.49 6,566,365.25
2017 6,854.40 2 4.00 16.00 13,708.80 27,417.60 8,135.65 (1,281.25) 1,641,591.31
TOTAL 49,310.04 0 10.00 34.00 (32,761.42) 137,437.62 49,310.04 (0.00) 16,415,913.13
1.4.2.5 COMPUTED VALUES OF STANDARD DEVIATION
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𝜮(𝒀−𝒀𝒄)²
Standard Deviation, S =√ 𝒏
Equation 1: Standard Deviation for Statistical Treatment of Data
Method Computed Standard Deviation

Straight Line 3,110.56
Semi-log 2,759.08
Parabolic 2,025.83
Base on the computed values of standard deviation, the parabolic method gave us
the least value of standard deviation, therefore the parabolic method is used to
project the supply for the next 5 years.
1.4.2.6 PROJECTED SUPPLY FOR THE NEXT 5 YEARS
YEAR Y X X^2 X^4 XY (X^2)(Y) Projected Yc (sq.m)
2018 3 9 81 12,727.57
2019 4 16 256 20,466.72
2020 5 25 625 31,353.10
2021 6 36 1296 45,386.70
2022 7 49 2401 62,567.54
Where:
𝑌𝑐 = 𝑎 + 𝑏𝑋 + 𝑐𝑋 2
(∑X4 )(∑Y)− ∑X2 (∑X2 Y)
a= n(∑X4 )−(∑X2 )2
∑XY
b=
∑X 2
n(∑X2 Y)− ∑X2 (∑Y)
And: c= n(∑X4 )−(∑X2 )2
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Therefore:
𝑌𝑐 = 8393.477 − 3276.14𝑋 + 1573.613𝑋 2
LINE CHART FOR DEMAND AND SUPPLY (2018– 2022)
Demand and Supply

Projected Supply Projected Demand
200,000.00
180,000.00 182,189.96
169,462.39
160,000.00
148,995.67
140,000.00
120,000.00 117,642.57
AREA
100,000.00
80,000.00
72,255.86
60,000.00 62,567.54
40,000.00 45,386.70
31,353.10
20,000.00 20,466.72
12,727.57
- YEAR
2018 2019 2020 2021 2022
1.4.2 SURVEY SAMPLE AND RESULTS

Number of registered contractors from different city or municipality
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CITY/MUNICIPALITY 2014 2015 2016 2017

GMA, Cavite 13 16 19 22
Carmona, Cavite 18 21 24 25
San Pedro, Laguna 27 29 32 35
Biñan, Laguna 23 25 28 29
Sta. Rosa, Laguna 31 33 37 39
TOTAL 112 124 140 150
SOURCE: from municipal office of the said areas
1.4.3.1 DETERMINING THE SAMPLE SIZE
Based upon the data given in the Table, the proponents decided to use Slovin’s
Formula to determine the desired sample size to be used in the distribution of the
survey. It is computed through the following formula:
N
n= 1+N𝑒 2
Where: N= total population size
n= desired sample size
e= 5% as the percent error
150
n=1+150(0.05)2
n= 110, no. of respondents
1.4.3.2 DISTRIBUTION OF SURVEY

The proponents used the Stratified Sampling Formula to compute for the number of
people from whom the inputs for the survey will be gathered in each city.
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nh= (Nh/N)*n
Where: nh= sample size for stratum h
N= population size per stratum
n= desired sample size
CITY/MUNICIPALITY SAMPLE
GMA, Cavite 16
Carmona, Cavite 18
San Pedro, Laguna 26
Biñan, Laguna 21
Sta. Rosa, Laguna 29
TOTAL 110
Number of respondents
In this study, the opinion of the project’s targeted market is of importance to the
affectivity of its marketing strategy. The targeted markets of this study are
municipalities who hold responsibility to the security of its citizens, specifically
interviewing or surveying the city engineers or representatives from the engineering
department of each city municipality. The opinions of these people affect the
applicability, affectivity, the total annual demand of slope protection to identify the
amount of supply of the product must be made to comply with its corresponding
annual, monthly, weekly and daily quotas or demand for production. The sample
questionnaire is provided below in photographic format:
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Figure 1.7: Sample Questionnaire for Survey
A detailed view of the questions is provided below with their corresponding results
from the survey done by the researchers. In this study, only a few chosen questions
have a big impact to the computations of the total demand of the annual production
of the Torricelli which is shown after the evaluation of the survey results.
The data gathered below came from government or municipal officials, particularly
from the Engineering Offices, City Environment Natural Resources Offices
(CENRO), and Department of Public Works and Highways (DPWH). Questions with
bearing to this research were the only ones included due to its effect in this study.
Question 1: Have you ever experienced slope failures or soil disturbances before?
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ANSWER PERCENT (%) No. of Respondents

YES 84.55 93
NO 15.45 17
TOTAL 100.00 110
Question 2: How often do you experience these slope failures and soil disturbances?
1-2 times 55.45 52
3-4 times 27.27 25
4 or more 17.27 16
TOTAL 100.00 93
Question 3: How much would you estimate your land is affected by slope?
< 10 sq.m 35.45 33
10.1 sq.m < X < 25.0 sq. m 30.91 29
25.1 sq.m < X < 40.0 sq. m 20.00 19
40.1 sq.m < X 13.64 13
TOTAL 100.00 93
Question 4: Which type of slope protection do you presently use?

Geosynthetic Materials 4.55 4
Ripraps 43.64 41
Retaining Walls 49.09 46
Others 2.73 3
TOTAL 100.00 93
Question 5: Are you satisfied with what you currently use for slope protection?
1-2 times 91.82 85
3-4 times 8.18 8
TOTAL 100.00 93
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Question 6: Which qualities do you find to be most important for products used to
protect slopes?
ANSWER INTERPRETATION
Price 54 out of 100 Percent
Strength 96 out of 100 Percent
Durability 88 out of 100 Percent
Environmental 98 out of 100 Percent
Others 0 out of 100 Percent
Question 7: Have you ever used geosynthetic materials as slope protection before?

YES 93.64 87
NO 6.36 6
TOTAL 100.00 93
Question 8: Are you willing to use our product, “PET Bottle Geocells”, for slope
protection?

X < 1000 PHP 79.09 74
1001 PHP < X < 2500 PHP 11.82 11
2501 PHP < X < 4000 PHP 7.27 7
4001 PHP < X 1.82 2
TOTAL 100.00 93
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Question 9: At what price are you willing to pay to purchase our PET Bottle Geocells,
with the inclusion of its installation?

X < 1000 PHP 79.09 74
1001 PHP < X < 2500 PHP 11.82 11
2501 PHP < X < 4000 PHP 7.27 7
4001 PHP < X 1.82 2
TOTAL 100.00 93
The result of the questions from the survey proves that there are contractors or
municipalities who are willing to buy the product.
1.4.3 TARGET MARKET

1.4.4 The project will be focusing on these clients: the government institutions such as
the DPWH and the dependents from municipalities and/or cities, in example, public
schools, public establishments, and private individuals and institutions like schools,
hospitals, land developers, etc. located in sloping grounds which needs proper
solutions to small-scale soil disturbances problems. This project is very much
recommended for structures or institutions in areas with steep slopes along
mountainous areas and steep sloping road sides.
The researchers calculated the target market using the demand and supply data
given from the Department of Public Works and Highways which shows:
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TARGET MARKET = (Area of unprotected slope annually x Market share)

Year 2018
TARGET MARKET = (169462.39 sq. m x 10%)
TARGET MARKET = 16,948 pcs per year
1.4.4.1 DEMAND FOR THE NEXT 5 YEARS
YEAR DEMAND
2018 169,462.39
2019 148,995.67
2020 117,642.57
2021 72,255.86
2022 9,688.33
Therefore, the total target market of the year 2018 will be estimated to 16,948
pieces per annum. The production of the PET bottle geo-cells based from a period
of annual, monthly, weekly, and daily production will be the following:
ANNUAL: 16,948 pieces
MONTHLY: 1,412 pieces
WEEKLY: 353 pieces
DAILY: 60 pieces
These values are the periodical quotas that the company must comply with to attain
equilibrium in the supply and demand of the product.
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1.4.5 MARKET SEGMENTATION
MAIN CATEGORY SEGMENTATION BASE
Country Philippines
Region IV-A CALABARZON

GEOGRAPHIC
Cit y of St a. Rosa, Cabuyao,

Community
Laguna
Age Group Young Adult s, Older Adult s

DEMOGRAPHIC
Gender Male, Fem ale
Lifestyle Work
PSYCHOGRAPHIC Social Class Upper and Middle Class
Personality Innovat or and Curious
Ready t o buy, Gat hering

Buying Stage
inform at ion only
Int ernet , Flyers, and
BEHAVIOURAL Media Usage
Post ers
Usage Situation Work
Table 2.1: Market Segmentation
1.4.6 PROJECT PROMOTION

The promotion of the product will be through the following mediums:
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1.4.6.1 Newspaper Advertisements

Newspaper is a medium that never gets old. Even today, most of the people,
especially those who are older, rely on newspapers for updates on current events in
the country. Newspaper ads will surely be useful for the promotion of this product.
1.4.6.2 Online Advertisements
Majority of the people today rely on the internet for most of their jobs, schoolwork,
etc. because the internet has almost everything (i.e., news, jobs, etc.). Using this
medium, the company may promote its product through Facebook, the largest
social network around the globe, and Twitter, and through the company’s own
website.
1.4.6.3 Public Advertisements
Flyers and public advertisements on low-rise buildings may also be an effective way
of promoting the company’s product. Through flyers, agents from the company may
help distribute information on the product, personally. While through public
advertisements, such as tarpaulins hung on the sides of low-rise buildings and
billboards, may also help in spreading and promoting the product through its large
visuals that may be seen while travelling to work, school, etc.
1.5 SELLING PRICE COMPUTATION
The following will be the computation for the selling price of the product at a
standard size of one (1) square meter of TERRAcells. The computation of price
includes the total material cost of the product, the labor cost for the production, and
the overhead cost which will include the machinery and other costs needed for the
product. Based on financial analysis, the proposed seling price is about @@@
pesos/unit for the first year and will increase to PHP @@@/unit after five years.
The details of the computation are shown in the financial aspect of this report.
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CHAPTER II
SOCIO-ECONOMIC ASPECT
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2.1 INTRODUCTION
Environmental Aspect is an element of an organization's activities that can

interact with the environment .The process of environmental aspects is an important
step about recognizing their impacts on our planet. Possible list of environmental
aspects are: air contamination, waste discharges, energy and natural resource
consumption, noise, odor and manufacturing processes. This proves useful in
setting and formulating objectives and targets that may be directed concerning
environmental problems. The aim of this is not to determine the importance of each
aspect, but to make a progress in such a way to identify essential information about
possible environmental aspect and effects of it on our surroundings.
This is significant consideration impact for environment when writing the

feasibility study proper. A good feasibility study must be solicitous about on both
profits and environment. Every business project has social and environmental
responsibility to protect and secure the environment.
The materials that shall be used must safe from harm for safeness of nearby
residents and secure from committing damage. The wastes must dispose properly
or segregated or recycled, if there are any.
Every machineries to be utilized in the production must be maintained so that it

shall pass the standards or to make it recognized by the Department of
Environment and Natural Resources.
In this project profitable is a must, but if it is only directed concerning profitable

system as a result, profitable project along with welfare for the people and benefits
of this project will provide to the community.
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Socio economics are conducted to determine the degree to which the design or
location of a given project is economically justified, an alternative is considered
preferable from an environmental or social perspective and operation can be
financed and managed.
Socio-economic includes impacts such as population, demographics, land use,

economy, project educational and quality of life benefits. This aspect discusses the
importance, effect and responsibility of the firm in the society.
In countries where the majority of the population lives below the poverty line, soil
and water conservation measures must be accompanied by measures to alleviate
poverty in order that soil and water conservation may be successful and the goals
of Watershed Management can be achieved. Poverty is an essential cause of
mismanagement and resulting degradation of natural resources in many places
(Hurni, H., Herweg, K., Liniger, H.; Maselli, D. and Kläy, A.(2003)). An increasing
degradation of natural resources in turn aggravates poverty. WM addresses all
aspects of this vicious circle [Bollom, M.W.: (1998)]. Poverty reduction involves
several sectors in which suitable measures are to be implemented: measures to
encourage education and health (including measures to combat HIV/AIDS), for
instance. Participation of local people in planning, implementing and monitoring of
these actions is decisive for sustainable outcomes.
The economic interests and opportunities of the resource users are to be

considered and improved in all intended measures [Förch, G. and Schütt, B. (2004
b)]. Costs of all measures must lie within the available budget of the project.
Furthermore, the measures have to be economically viable.
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2.2 SOCIO – ECONOMIC CONTRIBUTION
 Economic growth and employment

Economic growth is an increase in the capacity of an economy to produce goods
and services, compared from one period of time to another. The main growth
requirement for the development of a country is to let companies invest for
economy to grow, stable environments, efficient organizations, business markets
and access to sustainable financial services are all required. As production
requires working time and human capital, firms and other organizations pay people,
providing them with a key component of their income.
Employment simply means being paid for a work done. It is one of an important
element especially in populated country. Particularly low national employment rates
may signal a long-lasting depression and underdevelopment.
 Business Environment
The business’s success will prompt more entrepreneurs to operate into business.
Also the establishment of this business will promote the expansion of other
business firms that will provide the raw materials needed and services.
 Costumer
Consumers will be a beneficiary by means that they are the ones who’s going to
use and the grantee of the product.
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 Competitors
Those are the companies in the similar industry which offers similar product.
Competition requires companies to become more efficient, produce superior
product to surpass the quality that the other company offers.
 Industry
Since the product’s primary component is a used PET bottle, businesses related to
use PET bottles will be a beneficiary because they produce the raw material
needed.
 Government
Tax liabilities which were mandated by the law obliges businesses to be paid and it
helps the government to generate or collect funds for public services’ and
government projects’ improvement.
 Students
Students are aspiring leaders and professionals. If the business becomes

successful, they can challenge themselves to create and produce products with
different and unique materials.
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MANAGEMENT
INTRODUCTION
Management is an organizational process which includes strategic planning,

objectives, managing resources to achieve the objective of any company. It is the
act of managing oneself and the people to work as a company is desired to and to
facilitate useful outcome of a systems production. Doing a task correctly is an act of
being efficient while doing a task appropriately is being effective by means that
there will be least possible cost with minimum wastage of resources. Therefore, a
good management is an effective and efficient managing.
Moving an organization towards its purposes is the role of management by

assigning the activities of the organization members perform. The production of
each individual worker will be a contribution to the organizational goals’ attainment
if the management ensures that all the activities are designed effectively.
4.1 FORM OF BUSINESS ORGANIZATION
PARTNERSHIP - A type of business organization in which two or more people pool

money, skills, and other resources, and share profit and loss in accordance with
terms of the partnership agreement. In absence of such agreement, a partnership is
assumed to exit where the participants in an enterprise agree to share the
associated risks and rewards proportionately.
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4.1.1 Advantages of Partnership
 Has the ability to raise funds because of two or more partners may be able to share
their funds and has the greater capacity in terms of borrowing.
 Good attraction for prospective employees to the business if the incentive to
become a partner is given.
 The more owner, the more ideas, knowledge, skills, and even contacts are to be
shared.
 High chance of cost-effectively because each partner has their own expertise in
terms of business aspect.
 Partnerships provide moral support and will allow for more creative brainstorming.
4.1.2 Disadvantages of Partnership
 Other’s time and skills must be valued and profit must be shared to others.
 Since it is a partnership, expect for the argumentations, disagreements of every
decision making.
 The withdrawal or death of a partner can end the life of partnership
 In order to achieve a larger business, limitations in a partnership is a must.
 By considering the ideas of your partner and negotiate more for you to make
decisions by yourself as a result need to be more flexible
 A partnership has a major disadvantage such as unlimited liability.
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4.2 ORGANIZATIONAL STRUCTURE
GENERAL MANAGER Management

Accountant
Production Skilled Driver Operator Security Janitor

worker laborer guard
4.3 DUTIES AND RESPONSIBILITIES OF PERSONNEL

General Manager
 In charge in directing and coordinating activities of business or departments
concerned with the production, pricing, sales, and/or distribution of products.
 Has contact for any junkshop or community for supplying raw material purposes.
 Manage staff, preparing work schedule and assigning specific duties.
 Reviews financial statements, sales, activity reports, and performances data to
measure productivity including goal achievement and determining areas needing
cost reduction and program improvement.
 Establishes and implements departmental policies, goals, objectives, and
procedures, conferring with board members, organization officials, and staff
members as necessary.
 Determines requirements in staffing including the interviews, hiring and training new
employees, or oversee those personal processes.
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 Monitors business and agencies to ensure that they efficiently and effectively
provide needed services while staying within budgetary limits.
 Oversees activities directly related to making products or providing services.
 Directs and coordinate organization’s financial and budget activities to fund
operations, maximize investments, and increase efficiency.
 Determines goods and services to be sold, and set prices and credit terms, based
on forecasts of customer demand.
 Locates, selects, and produces merchandise for resale, representing management
in purchase negotiations.
 Performs sales floor work such as greeting and assisting customers, stocking
shelves, and taking inventory.
 Develops and implement product marketing strategies including advertising
campaigns and sales promotions.
 Plans and directs activities such as sales promotions, coordinating with other
department heads as required.
 Directs non-merchandising departments of businesses, such as advertising and
purchasing.
 Recommends locations for new facilities or oversee the remodeling of current
facilities.
 Plans store layouts, and design displays.
 Sets tools and objectives for department or unit.
 Develops budgets and ensure department adheres to it.
 Participates in developing policies and procedures.
 Manages staff.
 Hires, trains, and terminates workers or any personnel if needed.
 Determines salary brackets.
 Handles employee relations.
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 Attends and presides over meetings.

 Maintains employee records.
 Manages and direct overall operations including advertising and purchasing.
 Sets goals for each department.
 Clearly communicates goals to department heads.
 Measures the success of each department.
 Manages support staff.
 Delegate’s responsibility.
 Generates and presents reports on departmental goals.
 Participates in seminars and conferences.
 Motivates and encourages employees.
 Participates in lead generation and business development.
 Ensures high customer and client satisfaction.
 Solicits customer feedback.
 Ensures inventory is stocked and consistently replenished.
 Promotes company’s mission and values.
 Sets district and regional goals.
Management Accountant
 Preparing reports, budgets, and financial statements.
 Undertaking financial administration and internal audits
 Developing and managing financial system/policies.

 Negotiating and obtaining finance system and policies
 Creating business strategies to generate shareholder value.
Production Worker
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 Produces the product such as terra cells which undergo different processes.
 Maintain the good quality of the product.
Security Guard
 Secure and Protect the building
Supervisor
 Analyze and survey reports maps, aerial photography and other topography or
geologic data to plan projects.
 Plan and design the terra cells system.
 Conduct quality control.
Skilled Laborer
 Perform the installation of the terracells

 Keep the installation utilized.
 Conduct observation analysis in the location of the installation.
Janitor
 Perform heavy cleaning duties, such as cleaning floors, shampooing rugs, washing
walls and glass, and removing rubbish.
Driver
 Drives vehicles to designated destination for customer product deliveries.

 Deliver the product with care.
 Analyzes the right routes to maintain management schedules.
 Reports any accidents or injuries to supervisors immediately
 Conduct vehicle inspection specifically tire pressure and checking fluid.
 Inform supervisor about major repairs and maintenances.
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 Gather and collects payments from customer at time of product delivery.

 Maintains the vehicle clean and safe.
 Follows the local and state driving laws and road regulations.
Operator
 The operation of two or more types of motorized equipment such as backhoe and
loader.
 Responsible for digging trenches.
 Cleaning equipment, maintenance facilities and pick up debris.
 Be observant and report to supervisor any abnormal condition in regards to specific
situation.
4.4 QUALIFICATIONS
General Manager
 Bachelor’s Degree of Civil Engineering

 Male/Female, at least 30 years of age
 Has at least 1 year to 2 years of managerial experience
 Attended at least one management seminar (Certificate)
Supervisor
 Male/Female at least 23 years of age.

 Technical knowledge about the product
 Has at least 1 year to 2 years managerial experience
 A Degree in profession or related in field works.
Management Accountant
 Male/Female at least 22 years of age.
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 Preferably with 1 year of work experience in the related field.

 A Degree in Accounting or Finance and related fields such as Business
Administration.
 Knowledge of professional accounting principles and practices.
 Knowledge of Law and Regulations
 Application must be willing to work in Caromon,Cavite.
Production Worker
 Male/Female at least 20-40 years of age.

 Atleast high school graduate.
 Willing to learn.
 Willing to work extended hours.
 Applications must be willing to work in Carmona, Cavite
Janitor
 Male/Female at least 20-40 years of age.

 Willing to work early morning or late night shifts.
 Ability to work well under minimal supervision.
Security Guard
 Candidate must posses atleast a Vocational Diploma or Short Course Certificate

 With minimum experiences of 2 years-minimum Height: 5’5 inches tall
-minimum Weight: 60 kg
 Willing to work extended hours.
Operator
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 Male at least 30 years of age.

 Has atleast 1 year experience in operating Machines such as Loader and Backhoe.
 Knowledge in Handling Machines and Troubleshooting
 Hardworking, Flexible, Trustworthy and can work under pressure.
 Application must be willing to work in a specific project that will assigned
Skilled Laborer
 Male 20-40 years of age

 At least high school graduate
 Willing to work extended hours
 At least 1 year experience in field works
 Willing to learn
 Willing to work extended hours
Driver
 Male at least 25 years of age

 Can operate four wheel vehicle
 With driver’s license
4.5 JOB APPLICANTS REQUIREMENTS
 Resume
 2pcs 2 x 2 Picture (Latest)
 NBI Clearance
 Police Clearance
 Tax Identification Number
 Transcript of Records and Diploma (Position with College Degree)
4.6 EMPLOYMENT STATUS
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All employees will undergo one (1) month training and probation period with
respect to his/her position in order for them to understand and experience the real
situation during working in the company and also to make them familiar with the
company’s rules and regulations. After one (1) month of training, the employee’s
performance will undergo to evaluation of the manager and provide the appraisal if
the employee reach the certain maturity in the field.
Regular employees were those employees who have done the required training
with a given period of time and have the approval or recommendation of the
presiding trainer/superior.
4.7 WORKING CONDITION

Every employee shall render 6 days of work in a week from Monday to Saturday on
8-hours per day and an extra hour if necessary.
 Office Staff – 8:00 am to 5:00 pm
 Labor – 8:00 am to 5:00 pm
Time of arrival and departure of all employees must be recorded otherwise,
considered as absent.
4.8 STANDARD PAYDAY

Standard payday is scheduled every 15th and 30th of the month. In case they said
payday is a legal holiday, payday will be advanced in the nearest working day.
4.9 OVERTIME PAY

Overtime pay rates depends upon the day when the work is performed, whether it is
ordinary working day, special day, or holiday.
 For ordinary working day, an additional compensation equivalent to his/her regular
hourly rate plus at least 25% thereof.
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Over Time Rate = Regular hourly rate + 25% of regular hourly rate
 If the 1st day (Sunday) of the week is needed in order to finish the task, his/her
regular hourly rate must be doubled, that will serve as his/her additional
compensation.
Additional Compensation = Regular hourly rate x 2
4.10 PREVILEGES AND BENEFITS
4.10.1 PREVILEGES
 Leave
All employees should be authorized to have a maximum of three (3) days leave with
pay.
4.10.2 VACALTION LEAVE
All employees should file a request for vacation leave two (2) weeks prior to the
desired date of vacation and the approval depends on the decision of the
management. All employees have a total of ten (10) days of Vacation leave per
year who have worked with the company for at least 1 year.
4.10.3 SICK LEAVE
All employees are entitled to have six (6) days sick leave. It is convertible to cash if
not used.
4.10.4 MATERNITY LEAVE
Employees having maternity period shall have forty-five (45) days maternity leave
with full pay. A request must be presented to the management together with
medical certificate stating the expected date of giving birth.
4.10.5 CALAMITY LEAVE
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Two (2) days leave for employees who were affected by calamities (must be
supported by a Government enunciation.
4.11 BENEFITS
4.11.1 13th Month
Employees shall receive 13th month pay at the end of the year.
4.11.2 PAG-IBIG
Members are obliged to contribute one (1) or (2) percent (%) of monthly salary.
They are entitled to have their retirement benefits and avail housing loans. This
institute has given the entire employees who are below 60 year of age considered
as a chance to provide financial assistance to their needs.
4.11.3 Social Security System (SSS)
All employees are required to contribute to the Social Security System (SSS) to
avail the benefits as a member.
4.11.4 Philippine Health Insurance Corporation
Under the Philippine Medicare Act, all personnel or employees covered by the SSS
are required to pay Medicare premium, medical expenses consisting of medicine, x-
ray, laboratory examinations and others, professional fees which include surgical,
medical, dental; surgical family procedures (sterilization benefits). Monthly
contributions are based on actual employee monthly salaries and the amount of
employee’s contribution is matched equally by the employer.
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4.12 PROPOSED POLICIES ON WORK SCHEDULE
4.12.1 WORKING DAYS AND HOURS
Direct and indirect employees should render six (6) days period in a week while
selling and administrative employees would render five (5) days period in a week
for eight (8) hours a day.
4.12.2 MEAL PERIODS AND BREAK TIMES
 Lunch: 60 minutes from 12:00 to 1:00 pm

 Afternoon: 20 minutes from 3:00 to 3:20 pm
4.13 PROPOSED POLICIES ON WORK SCHEDULE
The project timetable from the setup to normal operation will take about 12 weeks.
Site development is estimated to be about 6 weeks. The marketing activities will
start after hiring and training of the employees.
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Duration of the Project (in weeks) 1 2 3 4 5 6 7 8 9 10 11 12

Plan Location
Renovation of Site
Filling of Permits and License
Acquisition of Office Furniture and Fixtures
Hiring and Orienting of Employees
Acquisition of Office and Production Equipment
Acquisition of Production Materials
Training of Employees
Marketing
Start of Operations
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CHAPTER III
Technical Aspect
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1.5 THE PRODUCT
Our product is the TERRAcells made from used Polyethylene Terephthalate

(PET) Bottles also known as PET or PETE and best known as the clear plastic
used for soda bottle containers and water. It is hard, stiff, strong, dimensionally
stable material that absorbs very little water. It has good gas barrier properties,
good chemical resistance and also thermal resistance. With these properties, it is
perfect to use as the main raw material in our product since it is laid directly to the
soil and exposed directly to any weather condition.
 Weight: approximately 300 grams

 Color: depends upon the waste PET Bottle used
 Dimension: 1 m x 1m x 70 mm (L x W x H)
 Strength: 356N in Tensile Strength
2112N in Compressive Strength
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 TESTING AND RESULT (EXPERIMENTAL METHOD)
The compressive loads applied on the material were made on a horizontally
oriented surface. The weights applied were in pounds (gym weights of 10 and 20
pounds) and kilograms (water in containers weighed to at least 20 kilograms, and
human weights), three of these trials indicated that the material will soon crumple (trials
10 to 13) but still passed the test. Cracking sounds were heard when the weights were
being applied which, eventually, crumpling at one end of the three by three (3 x 3) PET
Geocell, at the 215.36 kilograms, occurred. However, the material did not crumple
completely. This result indicates that the material can still hold off weights of more than
215.36 kilograms. The researchers considered this result to have failed at the 215.36-
kilogram mark because of the indication at the procedure to consider it as failed as soon
as it crumples.
COMPRESSIVE LOADS
WEIGHT
TRIALS RESULT AND EVALUATION
(kg)
1  4.54 No changes in t he mat erial (Passed)
2 9.07 No changes in t he mat erial (Passed)
10 158.79 No changes but wit h cracking sounds. (Passed)
13 215.36 Mat erial crumpled at one end when loads are applied. (Failed)
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After the compressive strength test, the tensile strength of the material was done
by the researchers. Based from the data taken after the tests, shown in Table 4.5, the
material broke off on the connectors of the geocell, completely ripping the ties. The
loads hung on the material to take the tensile strength did not have any major effects at
all on the PET Bottle itself which points out that it could still withstand larger tensile
loads but only with better material for connections.
TENSILE LOADS
WEIGHT
TRIALS RESULT AND EVALUATION
(kg)
1 18.14 No changes in t he mat erial. (Passed)
2 27.22 No changes but wit h crackling sounds. (Passed)
3 36.29 No changes in t he mat erial but failed in t he connect ors (Failed)
 USES OF PRODUCT
TERRAcells are generally used for controlling soil erosion on slope

areas, such as road-side slope, river-side slope, and can be used as retaining wall
as well as soil stabilization. It will serve as temporary support for vegetation and
most especially, it provides sub-surface drainage system which is necessary to
prevent too much absorption of water that will cause soil to erode.
 MINIMUM, MAXIMUM SPACING and No. OF STEEL PEGS
No. of Steel Pegs = (L x W x 2) + L + W + 1
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Where: L = length of TERRAcell

W = width of TERRAcell
Minimum spacing of steel pegs is equal to 500mm.
Maximum spacing of steel pegs is depend upon the topography of the area.
 SLOPE CAPABILITY
Slope capability of the product is from zero degree to 90 degree angle.

0 to 45 degree – typical installation
45 up – multilayered installation
1.6 MANUFACTURING PROCESS

The production of TERRAcells consists of five basic processes. Procurement of
materials, cleaning, cutting and punching, connecting, packaging. When raw
materials are ready, the workers will cut and remove the excess part of the plastic
bottle and ready the material for the next process. After that, insert the remaining
part on the cutting and punching machine for final material preparation. And for the
final step, connecting and packaging, use plastic ties to connect plastic strips until
achieve the right dimension then packed.
 Procurement
Procurement or purchasing is the first step in production of Terra cell where
general manager is responsible on purchasing and/or have the contacts on the
distributors on orders.
 Cleaning
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After collecting plastic bottles, cleaning of product from excess content or dirt must
be done. Removal of tags and cup is a must.
 Cutting and Punching
In this process cutting with punching machine is used to attain the uniform
dimension, punch holes and number of punch holes needed in the specification.
 Connecting
Every cut plastic strips were connected using plastic ties to form required dimension
for distribution. Four strips are needed to connect at a time for faster production.
1.7 INSTALLING PROCESS

After production of product, it is followed by installation of TERRAcells in the field
which is composed of six basic processes, clearing, lay-outing, scraping, laying,
locking, and filling. The moment that the product arrives to the field, clear the debris
present in the field at the same time lay out the required area to be installed by the
product. After lay-outing, scrape the soil surface to a depth of 100 mm for the
product and plane uniformity purposes. Later on, lay the product and lock.
Subsequently, fill TERRAcells with gravel with at least half of its depth then
afterwards, fill it with scraped soil.
 Clearing
The personnel whose involve in installation of the TERRAcells must clear the
debris present in the area to be installed if ever in order to prevent accident or any
injuries.
 Lay-outing
Lay-out the required area to determine how many units are needed to be
installed.
 Scraping
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In this process, soil surface must be removed to a required depth for filling and
for uniformity of the plane to ease TERRAcells laying.
 Laying
If the three processes are done, lay the TERRAcells into the area to determine
either the product satisfies the area or not.
 Locking
This process uses locking device to prevent movement of TERRAcells since it is
laid on the slope area.
 Filling
The last process of the installation, this includes filling of gravel in every cell for at
least half of the depth of the product and this is the portion where the water flows
from cell to cell. And also, after filling gravel, scraped soil is followed to be filled; this
portion is used as the growing medium for the vegetation.
1.8 PLANT SIZE
The office and production are located at Brgy. Bancal Carmona, Cavite along
Governor’s drive. The office has a floor area of 24 square meters and has a total
floor area of 184.84 square meters with a total lot area of 720 square meters. The
unoccupied floor area is used for Storage, where the raw materials stored. Cleaning
Section, where the process of removing excess content and dirt located. Production
is where the product made. Last but not the least, the Garage, is where the
transportation vehicles and heavy equipment park such as elf trucks and loader.
Since the office is located at the production site, the supervision is easy. The
annual production of the TERRAcells is constant 8474 pcs per annum.
For the Project Sales Volume, the project should supply a total of 8474 pieces of
TERRAcells.
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Projected Production Manpower and Production Output

YEAR 2018 2019 2020 2021 2022
Project
Sales 8,474 8,474 8,474 8,474 8,474
Volume
1.9 MACHINERIES AND EQUIPMENTS
PICKAXE
A pickaxe is a hand tool with solid iron head

attached perpendicular to a wooden
handle. The head is spike ended sharp
point that is used to remove obstacles and
cultivate the soil .It is most often used to
break or pierce up rock surface.
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Loader
A loader is a four wheeled equipment machine
that is mostly used in construction to move
aside or load heavy objects. Its front hand arm
has a capacity load can be 0.5 to 3m³
capacity. Depending upon the size of the
machine and its application. It has a lift
capacity of 1501kg at full height.
BACKHOE
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A backhoe is an excavating equipment or

digger that is used for excavating and
cultivates debris in a soil. The section of the
arm closest to the vehicle is known as
the boom, and the section which carries the
bucket is known as the dipper or dipper-stick,
terms derived from shovels. It has a lift
capacity of 1775kg.
SHOVEL
A shovel is a tool for digging, lifting, and

moving bulk materials, such as soil, coal,
gravel, it is a wide parabolic iron attached to
a long handle. It shall use for digging up and
lifting debris or substances.
BALL PEIN HAMMER
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Is a type of peening hammer used in metal

works. It has a metal head attached to a
wooden handle to round off edges of a
metal pins. The head of the ball peen
hammer is usually harder than that of a
claw hammer to prevent breaking and
chipping on contact.
PUNCHER PRESS MACHINE
Is a manual operated machine use for

pressing the mold in order to punch holes and
cut the strip in to designated number of holes
and dimension of the strip?
MOULD
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It is the device which is being pressed by manual machine in order to punch and cut
every strip particularly the holes and dimension of the strip.
1.10 NARRATIVE SUMMARY

The availability of our machineries, equipment, and spare parts are commonly
found in the local market in our country. One of the utmost locations is the
Carmona, Cavite which offers best products, services, and equipment’s in terms of
producing TERRAcells maker manual machine. It is one of our advantages since
our building facility is just located only in Carmona, Cavite along Governor’s drive.
The cost of transportation is less and the store where the equipment, machineries,
and etc. are located is just a few minutes away from our building.
The TERRAcells maker machine is not electrically powered and operated with
skilled workers to attain the required production capacity without sacrificing the
quality of the product. With this, large number of demands can be met on time.
1.11 PLANT LOCATION
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The location of our building facility is the geographical positioning of an operation

relative or closes enough to our resources in terms of raw materials as well as into
our customers where mostly of their projects subjected to slope areas.
Decisions in regards to where an organization can locate its building facility are not
frequently, however they still considered as very important for the firm’s profitability
and long-term survival. Choosing inappropriate location may lead to its premises
suffer from a number of factors, and will find it difficult and expensive to relocate.
Location decisions tend to be taken more frequently for service operations than
manufacturing facilities. Facilities for service related businesses are usually smaller
in size, less costly, and located in a location that is convenient and can be access
easily to customers.
The purpose location should be accessible with the following factors:
 Proximity to markets.
 Nearness to raw materials.
 Accessibility to public transportation.
 Availability of water and electric supply.
 Availability of labor and skills.
Carmona, Cavite was chosen by the proponents of the study because it satisfies
the requisites above, at the same time it is located near with the neighboring cities
and municipalities who’s subjected into slope areas such as General Mariano
Alvarez (GMA), Silang, Dasmariñas, Cavite and San Pedro, Laguna, perfect
location on both consumers and producers. The location is a highly economical
option when it comes to distribution of products, acquisition or purchasing of raw
materials.
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(Vicinity Map where the facility located)

1.12 PLANT LAYOUT
Plant layout is the layout of the plant or facility includes the location of every
compartment inside, and concerned with the physical placement of resources such
as equipment and storage facilities, which should be designed to facilitate the
efficient flow of customers or materials through the manufacturing or service
system. It is very important and should be taken seriously as is can have a
significant impact on the cost and efficiency of an operation and can involve and
affect the substantial investment in time and money. The decisions taken with
regards to the facility layout have a direct influence on how efficiently workers will
be able to carry out their jobs, how much and how fast goods can be produced, how
difficult it is to automate a system, how the system in place would be able to
respond to any changes with regards to product or service design, product mix, or
demand volume.
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The objectives of plant are to give comfort to the workers in their working field
like giving goods and improved working conditions, minimizing delays in production
and making efficient use of the space that is available and lastly having better
control over the production cycle by having greater flexibility for changes in the
design of the product.
The building structure of the plant is just simple. It is designed like a square
structure for manufacturing area so that the flow of the production will be easily
facilitated. The plant area includes raw materials and finished product storage,
garage, cleaning section, and office.
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(Site development plan)
(Perspective view)
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(Floor plan)
1.13 BUILDING FACILITY
BUILDING & LOT AREA EXPENSE

Description Area Cost per Area Monthly Cost Annual Cost
Lot Cost 184.80 70.00 12,936.00 155,232.00
TOTAL COST 155,232.00
Since there is an existing structure in location, the only expenses for the building are for
renovation which is approximately PHP 75,000.00.
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1.14 Raw material wastes PET bottles
Plastic bottles are widely used in the society.

Generally, it is used as container of soft drinks,
water, and etc. As the population increases, the
demand of plastic bottles increases, hence the
number of waste plastic bottles increases.
Therefore, presence of waste plastic bottles is
everywhere although there are some people or
community collects and put it on one place. Any
plastic bottle that has a uniform cylindrical body
shape can be used as raw material in the
product regardless of its size and colors.
 Cable Ties
Cable ties are commonly used for tying

any objects. In the product, cable ties
play a big role on the product where
every strip is connected by tying the
cable ties in designated holes present
in every strip to form the product into a
mesh like or a net .
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 Galvanized steel pegs
These ground steel pegs are used to fastened the

upper to bottom part of the intersection of the
TERRAcells to the ground.
 Gravel
is used to fill up the volume of voids

inside the terracells, which results to
the stabilization of the ground.
1.15 SOURCES OF RAW MATERIALS

Suppliers of Raw Materials:
PET Plastic Bottles
 Any Junkshop that collects plastic bottles.
 Canteens in factories such as POLYSHOE Corp., and etc.
 Fast Food Restaurants
 Communities that segregates plastic bottles such as Brgy. Bancal Carmona, Cavite.
 Hardwares
 Company that produces cable ties
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1.16 UTILITY REQUIREMENTS

 POWER SUPPLY
The power requirement of the plant is supplied by the Manila Electric Company
(MERALCO, the primary power distributor in the Philippines) operating in the
proposed plant site.
 WATER SUPPLY
The water requirement is supplied by the Carmona Water District (CWD).
 FUEL
Gasoline is used for the project’s delivery vehicle.
 COMMUNICATION
Internet and cellphone line is maintained by the PLDT and any network available.
1.17 WASTE DISPOSAL

Proper waste disposal of a plant is necessary as a government requirement, in
order to prevent pollution that may cause damage to health and lives of the people
living near the plant site.
Waste material produce from the operation are disposed only by ordinary sacks
or trashcans collected by the one assigned in the barangay. There is a twice a
week collection of garbage particularly every Monday. The waste materials are
segregated before disposal.
1.18 LABOR REQUIREMENTS
The employees are the greatest assets of all business establishments. The
success of the business greatly depends on how the employees perform their work.
Therefore, any business cannot operate without these human assets. The total
number of personnel required for the project is 13 with 1 general manager, 4 skilled
laborers, 6 production crew, 1 driver, 1 operator, and 1 security guard.
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TIME ACTIVITIES
8:00 am - 12:00 nn Working Operation
12:00 nn - 1:00 pm Lunch Break
1:00 pm - 3:00 pm Working Operation
3:00 pm - 3:20 pm Break Time
3:20 pm - 5:00 pm Working Operation
Number of days in a year 365

Less: Sundays 52
Legal Holidays 9
Total
Ideal Working Days 304
Less: delay / possible interruptions 5
TOTAL MANUFACTURING DAYS 299
LEGAL HOLIDAYS
Listed below are the legal holidays which were considered as non-working days of
the ATOMM Soil Solutions Company.
January 01 New Year’s Day

Holy Week Maundy Thursdays / Good Friday
May 01 Labor Day
June 12 Independence Day
August 29 National Heroes Day
November 01 All Saints Day
December 25 Christmas Day
December 30 Rizal’s Day
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CHAPTER IV
Financial Aspect
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Introduction
One of the main goals to have a successful business is to earn exact or right
amount of profit. In this chapter a comprehensive of information about financial
analysis will be presented, such as the startup capital needed ,project sales and the
detailed financed results conducted for the “study of perforated plastic bottles as
subsurface drainage and slope protection”.
Financial statements are significant in operating a business. Financial expertise

and accounting is a must. Analyzes of essential information including the balance
sheet, which is a statement of the assets, liabilities, and capital of a business or
other business at a particular point in time, detailing the balance of income and
expenditure over the preceding period.
FINANCIAL ASSUMPTIONS
1. Each partner contributed Php 732,355.38
2. Initial working capital was equal to the budgeted costs for three months
operation.
3. Production capacity is assumed to increase by 5% each year.
4. Rent expense is P 40,000 per month. Lease term will be 3 years with 2 months
deposit and one month advanced. The rent deposit will not be consumed and will
be refunded at the end of the lease term if not renewed.
5. Rent Expense is expected not to increase for the next three years.
6. Utilities expense is assumed to increase by 5% each year due to inflation.
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8. The ending balance of SSS, PAG IBIG and PHILHEALTH payable are for the
last month of the year
9. Salvage value of plant and equipment is 5% of the acquisition costs of the

assets.
10. The estimated useful life of the depreciable assets is 5 years.
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PROJECTED COST
Description Schedule Amount
A. Fixed Asset
Production Machineries 1 ₱ 210,000.00
Installation Tool and Equipment 2 ₱ 595,260.00
Fixtures and Furnitures 3 ₱ 37,800.00
Office Tools and Equipments 4 ₱ 47,210.00
Transportation Vehicle 5 ₱ 700,000.00
Sub Total ₱ 1,590,270.00
B. Pre-Operating Expense
License and Permit Registration 6 ₱ 9,943.00
Building Improvements 7 ₱ 277,200.00
Sample Unit 8 ₱ 65.84
Advertising Expense 9 ₱ 36,000.00
Sub Total ₱ 323,208.84
C. Working Capital (3 Months)
Rental Expense 10 ₱ 240,000.00
Direct Materials 11 ₱ 419,215.00
Salary Expense 12 ₱ 808,080.00
Utility Expense 13 ₱ 8,941.32
Telecommunication Expense 14 ₱ 2,997.00
Office Supplies 15 ₱ 1,189.10
Cleaning Materials 16 ₱ 893.00
Fuel Expense 17 ₱ 33,000.00
SSS Contribution 18 ₱ 64,845.00
Phil-Health Contribution 19 ₱ 10,039.32
PAG-IBIG Contribution 20 ₱ 5,558.40
13th Month Pay 21 ₱ 67,340.00
Repair and Maintenace 22 ₱ 3,900.00
Sub Total ₱ 1,665,998.14
Contingency Fund (5%) ₱ 83,299.91
Total ₱ 1,749,298.05
TOTAL PROJECTED COST ₱ 3,662,776.89
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FINANCIAL FUND
Contributor Contribution
Agnas ₱ 732,555.38
Anthony ₱ 732,555.38
Odo ₱ 732,555.38
Magparangalan ₱ 732,555.38
Mabalot ₱ 732,555.38
PROJECTION FOR 3 YEARS
DEPRECIATION
Description Annual Depreciation 2018 2019 2020 2021 2022 2023
Production Machineries ₱ 9,975.00 ₱ 210,000.00 ₱ 200,025.00 ₱ 190,050.00 ₱ 180,075.00 ₱ 170,100.00 ₱ 160,125.00
Installation Tool and Equipment ₱ 37,699.80 ₱ 595,260.00 ₱ 557,560.20 ₱ 519,860.40 ₱ 482,160.60 ₱ 444,460.80 ₱ 406,761.00
Fixtures and Furnitures ₱ 3,591.00 ₱ 37,800.00 ₱ 34,209.00 ₱ 30,618.00 ₱ 27,027.00 ₱ 23,436.00 ₱ 19,845.00
Transportation Vehicle ₱ 44,333.33 ₱ 700,000.00 ₱ 655,666.67 ₱ 611,333.33 ₱ 567,000.00 ₱ 522,666.67 ₱ 478,333.33
Total Value ₱ 95,599.13 ₱ 1,543,060.00 ₱ 1,447,460.87 ₱ 1,351,861.73 ₱ 1,256,262.60 ₱ 1,160,663.47 ₱ 1,065,064.33
Depreciation Cost ₱ 95,599.13 ₱ 95,599.13 ₱ 95,599.13 ₱ 95,599.13 ₱ 95,599.13 ₱ 95,599.13
Admin ₱ 3,591.00 ₱ 3,591.00 ₱ 3,591.00 ₱ 3,591.00 ₱ 3,591.00 ₱ 3,591.00
Production ₱ 9,975.00 ₱ 9,975.00 ₱ 9,975.00 ₱ 9,975.00 ₱ 9,975.00 ₱ 9,975.00
Installation ₱ 82,033.13 ₱ 37,699.80 ₱ 37,699.80 ₱ 37,699.80 ₱ 37,699.80 ₱ 37,699.80
INSTALLATION COST
Description 2018 2019 2020 2021 2022 2023
Installation Tool and Equipment ₱ 37,699.80 ₱ 37,699.80 ₱ 37,699.80 ₱ 37,699.80 ₱ 37,699.80 ₱ 37,699.80
Transportation Vehicle ₱ 44,333.33 ₱ 44,333.33 ₱ 44,333.33 ₱ 44,333.33 ₱ 44,333.33 ₱ 44,333.33
TOTAL ₱ 82,033.13 ₱ 82,033.13 ₱ 82,033.13 ₱ 82,033.13 ₱ 82,033.13 ₱ 82,033.13
DIRECT MATERIALS BUDGET

Description 2018 2019 2020 2021 2022 2023
Production Capacity ₱ 8,474.00 ₱ 8,474.00 ₱ 8,474.00 ₱ 8,474.00 ₱ 8,474.00 ₱ 8,474.00
Unit Cost/Product ₱ 197.88 ₱ 207.78 ₱ 218.17 ₱ 229.07 ₱ 240.53 ₱ 252.55
Total Annual Cost ₱ 1,676,860.00 ₱ 1,760,703.00 ₱ 1,848,738.15 ₱ 1,941,175.06 ₱ 2,038,233.81 ₱ 2,140,145.50
Cost per Month ₱ 139,738.33 ₱ 146,725.25 ₱ 154,061.51 ₱ 161,764.59 ₱ 169,852.82 ₱ 178,345.46
Cost per Quarter ₱ 419,215.00 ₱ 440,175.75 ₱ 462,184.54 ₱ 485,293.76 ₱ 509,558.45 ₱ 535,036.38
DIRECT LABOR BUDGET

Description Schedule 2018 2019 2020 2021 2022 2023
Direct Labor 12-A ₱ 1,965,600.00 ₱ 2,024,568.00 ₱ 2,085,305.04 ₱ 2,147,864.19 ₱ 2,212,300.12 ₱ 2,278,669.12
SSS 18 ₱ 158,400.00 ₱ 158,400.00 ₱ 158,400.00 ₱ 158,400.00 ₱ 158,400.00 ₱ 158,400.00
Philhealth 19 ₱ 26,400.00 ₱ 26,400.00 ₱ 26,400.00 ₱ 26,400.00 ₱ 26,400.00 ₱ 26,400.00
Pag-Ibig 20 ₱ 10,425.60 ₱ 10,425.60 ₱ 10,425.60 ₱ 10,425.60 ₱ 10,425.60 ₱ 10,425.60
13 month Pay 21 ₱ 163,800.00 ₱ 168,714.00 ₱ 173,775.42 ₱ 178,988.68 ₱ 184,358.34 ₱ 189,889.09
Total Cost Per Year ₱ 2,324,625.60 ₱ 2,388,507.60 ₱ 2,454,306.06 ₱ 2,522,078.47 ₱ 2,591,884.06 ₱ 2,663,783.81
Total Cost per Quarter ₱ 581,156.40 ₱ 597,126.90 ₱ 613,576.52 ₱ 630,519.62 ₱ 647,971.02 ₱ 665,945.95
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MANUFACTURING OVERHEAD COST
Descriprtion Schedule 2018 2019 2020 2021 2022 2023
Indirect labor 12-B ₱ 627,120.00 ₱ 645,933.60 ₱ 665,311.61 ₱ 685,270.96 ₱ 705,829.08 ₱ 727,003.96
SSS 18 ₱ 49,500.00 ₱ 49,500.00 ₱ 49,500.00 ₱ 49,500.00 ₱ 49,500.00 ₱ 49,500.00
PHILHEALTH 19 ₱ 8,250.00 ₱ 8,250.00 ₱ 8,250.00 ₱ 8,250.00 ₱ 8,250.00 ₱ 8,250.00
PAG-IBIG 20 ₱ 8,688.00 ₱ 8,688.00 ₱ 8,688.00 ₱ 8,688.00 ₱ 8,688.00 ₱ 8,688.00
13 MONTH PAY 21 ₱ 52,260.00 ₱ 53,827.80 ₱ 55,442.63 ₱ 57,105.91 ₱ 58,819.09 ₱ 60,583.66
Repair and Maintenance(+5%) 23 ₱ 15,600.00 ₱ 16,380.00 ₱ 17,199.00 ₱ 18,058.95 ₱ 18,961.90 ₱ 19,909.99
Electric Bill (70%)(+3%) 13-A ₱ 28,356.48 ₱ 29,207.17 ₱ 30,083.39 ₱ 30,985.89 ₱ 31,915.47 ₱ 32,872.93
Water Bill (70%)(+3%) 123-B ₱ 29,938.68 ₱ 30,836.84 ₱ 31,761.94 ₱ 32,714.80 ₱ 33,696.25 ₱ 34,707.13
Fuel Expense(+5%) 17 ₱ 132,000.00 ₱ 138,600.00 ₱ 145,530.00 ₱ 152,806.50 ₱ 160,446.83 ₱ 168,469.17
Depreciation Cost 22 ₱ 3,591.00 ₱ 3,591.00 ₱ 3,591.00 ₱ 3,591.00 ₱ 3,591.00 ₱ 3,591.00
Total per Year ₱ 955,304.16 ₱ 984,814.41 ₱ 1,015,357.58 ₱ 1,046,972.01 ₱ 1,079,697.61 ₱ 1,113,575.85
Total per Quarter ₱ 238,826.04 ₱ 246,203.60 ₱ 253,839.39 ₱ 261,743.00 ₱ 269,924.40 ₱ 278,393.96
FINANCIAL FUND
SCHEDULE 1: PRODUCTION MACHINERIES

DESCRIPTION QUANTITY UNIT UNIT COST TOTAL COST
Die Punching mould punch 6 pcs ₱ 10,000.00 ₱ 60,000.00
Puncher Press Machine 6 pcs ₱ 25,000.00 ₱ 150,000.00
TOTAL ₱ 210,000.00
SCHEDULE 2: INSTALLATION TOOL AND EQUIPMENT

shovel 4 pcs ₱ 1,000.00 ₱ 4,000.00
Mini Loader 1 set ₱ 590,000.00 ₱ 590,000.00
pick axe 2 pcs ₱ 170.00 ₱ 340.00
Ball Pein Hammer 4 pcs ₱ 230.00 ₱ 920.00
TOTAL ₱ 595,260.00
SCHEDULE 3: FIXTURES AND FURNITURES

Office Table 1 pcs ₱ 4,100.00 ₱ 4,100.00
Office Chair 5 pcs ₱ 1,200.00 ₱ 6,000.00
Filling Cabinet 1 pcs ₱ 3,500.00 ₱ 3,500.00
Whiteboard 1 pcs ₱ 400.00 ₱ 400.00
Conference Table 1 pcs ₱ 13,000.00 ₱ 13,000.00
Long Chair 2 pcs ₱ 3,000.00 ₱ 6,000.00
Bar stool 6 pcs ₱ 800.00 ₱ 4,800.00
TOTAL ₱ 37,800.00
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SCHEDULE 4: OFFICE TOOLS AND EQUIPMENTS

desktop compter 1 pcs ₱ 7,000.00 ₱ 7,000.00
Telephone 1 pcs ₱ 1,300.00 ₱ 1,300.00
Fire Extinguisher 3 pcs ₱ 800.00 ₱ 2,400.00
Wall Clock 2 pcs ₱ 200.00 ₱ 400.00
Water Dispenser 1 pcs ₱ 4,700.00 ₱ 4,700.00
Scissors 1 pcs ₱ 40.00 ₱ 40.00
Stapler 1 pcs ₱ 50.00 ₱ 50.00
Cutter Blade 1 pcs ₱ 10.00 ₱ 10.00
Calculator 1 pcs ₱ 1,000.00 ₱ 1,000.00
Tape Dispenser 1 pcs ₱ 50.00 ₱ 50.00
Air Conditioner 1 pcs ₱ 9,000.00 ₱ 9,000.00
Electric Fan 6 pcs ₱ 1,700.00 ₱ 10,200.00
Fluorescent Lights 7 pcs ₱ 1,080.00 ₱ 7,560.00
Printer/Xerox Machine 1 pcs ₱ 3,500.00 ₱ 3,500.00
TOTAL ₱ 47,210.00
SCHEDULE 5: TRANSPORTAION VEHICLE

Isuzu mini dump 1 pcs ₱ 700,000.00 ₱ 700,000.00
TOTAL ₱ 700,000.00
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SCHEDULE 6: LICENSE AND PERMIT REGISTRATION

DESCRIPTION COST
Registration with SEC ₱ 4,650.00
Verification of Partnership ₱ 40.00
Filling Article of Partnership ₱ 500.00
Form ₱ 400.00
Notary Fee ₱ 3,500.00
Documentary Stamp Registration ₱ 30.00
Documentary Stamp Filling ₱ 30.00
Registration Book ₱ 150.00
Registration with DTI ₱ 500.00
Filling Fee ₱ 500.00
Registration with BIR ₱ 1,293.00
Registration Fee ₱ 500.00
Receipts and Invoices ₱ 500.00
Documentary Stamp and Certification Fee ₱ 115.00
Books of Account ₱ 178.00
Registration with Mayor's Office ₱ 3,500.00
Mayor's Permit ₱ 1,000.00
Barangay Clearance ₱ 500.00
Sanitary Permit ₱ 500.00
Community Tax Certificate ₱ 500.00
Inspection Fee ₱ 400.00
Fire Inspection ₱ 600.00
TOTAL ₱ 9,943.00
SCHEDULE 7: BUILDING EXPENSE

DESCRIPTION AREA COST PER SQ.M. TOTAL COST
Building Cost 184.8 ₱ 1,500.00 ₱ 277,200.00
TOTAL ₱ 277,200.00
SCHEDULE 8: SAMPLE UNIT

DESCRIPTION QUANTITY UNIT COST TOTAL COST
1x1 sq.m. TERRAcell 1 ₱ 65.84 ₱ 65.84
TOTAL ₱ 65.84
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SCHEDULE 9: ADVERTISING EXPENSE

DESCRIPTION UNIT QUANTITY UNIT COST TOTAL COST
Social Media Advertisement mos. 3 ₱ 3,000.00 ₱ 9,000.00
Radio Broadcast hr 1 ₱ 10,000.00 ₱ 10,000.00
Tarpaulin pcs 2 ₱ 500.00 ₱ 1,000.00
TOTAL PER QUARTER ₱ 20,000.00
TOTAL PER YEAR ₱ 80,000.00
SCHEDULE 10: Rental Expences

DESCRIPTION No. of Mos. Monthly Cost Annual Cost
Advance Payment 1 ₱ 40,000.00 ₱ 40,000.00
Rent Deposit 2 ₱ 40,000.00 ₱ 80,000.00
TOTAL ₱ 120,000.00
DESCRIPTION Lot Size Monthly Cost Annual Cost
Building Rental 184 ₱ 40,000.00 ₱ 480,000.00
Administrative ₱ 288,000.00
Production ₱ 192,000.00
SCHEDULE 11: DIRECT MATERIALS

DESCRIPTION QUANTITY UNIT UNIT COST ANNUAL COST
1x1 sq.m. TERRAcell
Plastic Bottle 56776 kg 10 ₱ 567,760.00
Cable ties 26100 set 21 ₱ 548,100.00
Galvanized steel pegs 748 set 750 ₱ 561,000.00
Gravel 593.18 cu.m. 1200 ₱ 711,816.00
TOTAL PER YEAR ₱ 1,676,860.00
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SCHEDULE 12: SALARY EXPENSE

NO. OF MONTHLY
DESCRIPTION ANNUAL SALARY
EMPLOYEE DAILY SALARY SALARY
SCHEDULE 12-A DIRECT LABOR ₱ 1,965,600.00
Skilled Laborer 6 ₱ 450.00 ₱ 70,200.00 ₱ 842,400.00
Production worker 10 ₱ 360.00 ₱ 93,600.00 ₱ 1,123,200.00
SCHEDULE 12-B: INDIRECT LABOR ₱ 627,120.00
Janitor 2 ₱ 350.00 ₱ 18,200.00 ₱ 218,400.00
Operator 1 ₱ 500.00 ₱ 13,000.00 ₱ 156,000.00
Driver 1 ₱ 420.00 ₱ 10,920.00 ₱ 131,040.00
Security Guard 1 ₱ 390.00 ₱ 10,140.00 ₱ 121,680.00
SCHEDULE 12-C: ADMINISTRATIVE LABOR ₱ 639,600.00
Manager 1 ₱ 750.00 ₱ 19,500.00 ₱ 234,000.00
Accountant 1 ₱ 600.00 ₱ 15,600.00 ₱ 187,200.00
Civil Engineer 1 ₱ 700.00 ₱ 18,200.00 ₱ 218,400.00
TOTAL PER YEAR ₱ 3,232,320.00
SCHEDULE 13: UTILITY COST

SCHEDULE 13-A: ELECTRIC BILL
Unit Hrs of usage per COST/day
DESCRIPTION Quantiy
Consumption day Php6/KW-Hr
Lighting 7 0.048 8 ₱ 16.13
Desktop Computer 1 0.08 8 ₱ 3.84
Electric wall fan 6 0.1 8 ₱ 28.80
Air Condition 1 1 5 ₱ 30.00
SCHEDULE 13-B: WATER BIILL
NO. of Consumption
DESCRIPTION Php per unit COST (mos)
Consumer per Head
Drinking water 14 0.03 25 ₱ 315.00
Water Bill 14 0.024 30 ₱ 302.40
TOTAL PER MONTH ₱ 2,980.44
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SCHEDULE 14: TELECOMMUNICATION EXPENSE

DESCRIPTION MONTHLY COST ANNUAL COST
Internet and Telephone Bill ₱ 999.00 ₱ 11,988.00
SCHEDULE 15: OFFICE SUPPLIES

DESCRIPTION QUANTITY UNIT UNIT COST ANNUAL COST
Short Bond Paper 1 ream ₱ 250.00 ₱ 1,000.00
Short Folder 20 pcs ₱ 5.00 ₱ 20.00
Brown Envelope (S) 20 pcs ₱ 6.00 ₱ 24.00
Whiteboard Marker 3 pcs ₱ 40.00 ₱ 160.00
Board Eraser 1 pcs ₱ 65.00 ₱ 260.00
Ballpen 10 pcs ₱ 15.00 ₱ 60.00
Pencil 2 box ₱ 85.00 ₱ 340.00
Eraser 2 pcs ₱ 10.00 ₱ 40.00
Thumbtax 2 box ₱ 10.00 ₱ 40.00
Paperclip 2 box ₱ 60.00 ₱ 240.00
Staple Wire 1 box ₱ 45.00 ₱ 180.00
Timecard 3 pack ₱ 50.00 ₱ 200.00
Clipboard 1 pcs ₱ 10.00 ₱ 40.00
Fastener 2 box ₱ 40.00 ₱ 160.00
Liquid Eraser 3 pcs ₱ 25.00 ₱ 100.00
Glue 2 pcs ₱ 45.00 ₱ 180.00
Printer Ink 1 pcs ₱ 320.00 ₱ 1,280.00
SUBTOTAL ₱ 4,324.00
Unseen Expenses (10% of subtotal) ₱ 432.40
TOTAL ₱ 4,756.40
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SCHEDULE 16: CLEANING MATERIALS

DESCRIPTION QUANTITY UNIT UNIT COST COST/YEAR
Air Freshener 6 pcs ₱ 160.00 ₱ 960.00
Broom 4 pcs ₱ 60.00 ₱ 240.00
Feather Duster 2 pcs ₱ 35.00 ₱ 70.00
Dust Pan 2 pcs ₱ 45.00 ₱ 90.00
Floor Mat 4 pcs ₱ 45.00 ₱ 180.00
Floor Mop 3 pcs ₱ 119.00 ₱ 357.00
Broom Stick 3 pcs ₱ 15.00 ₱ 45.00
Garbage Bag 10 pcs ₱ 27.00 ₱ 270.00
Trash Can 5 pcs ₱ 50.00 ₱ 250.00
Cleaning Detergents 5 pcs ₱ 150.00 ₱ 750.00
Hand Soap 20 pcs ₱ 18.00 ₱ 360.00
TOTAL PER QUARTER ₱ 893.00
SCHEDULE 17: FUEL CONSUMPTION

DESCRIPTION CONSUMPTION/mos. (Lit) UNIT COST MONTHLY COST
Est. Fuel Consumption

250 ₱ 44.00 ₱ 11,000.00
per month
SCHEDULE 18: SSS CONTRIBUTION

SSS Contribution
NO OF SALARY
DESCRIPTION SOCIAL SECURITY EC
EMPLOYEE TOTAL ANNUAL
Monthly Annually ER EE ER
DIRECT LABOR ₱ 158,400.00
Skilled Laborer 6 ₱ 70,200.00 ₱ 842,400.00 ₱ 552.50 ₱ 272.50 ₱ 10.00 ₱ 4,950.00 ₱ 59,400.00
Production worker 10 ₱ 93,600.00 ₱ 1,123,200.00 ₱ 552.50 ₱ 272.50 ₱ 10.00 ₱ 8,250.00 ₱ 99,000.00
INDIRECT LABOR ₱ 49,500.00
Janitor 2 ₱ 18,200.00 ₱ 218,400.00 ₱ 552.50 ₱ 272.50 ₱ 10.00 ₱ 1,650.00 ₱ 19,800.00
Operator 1 ₱ 13,000.00 ₱ 156,000.00 ₱ 552.50 ₱ 272.50 ₱ 10.00 ₱ 825.00 ₱ 9,900.00
Driver 1 ₱ 10,920.00 ₱ 131,040.00 ₱ 552.50 ₱ 272.50 ₱ 10.00 ₱ 825.00 ₱ 9,900.00
Security Guard 1 ₱ 10,140.00 ₱ 121,680.00 ₱ 552.50 ₱ 272.50 ₱ 10.00 ₱ 825.00 ₱ 9,900.00
ADMINISTRATIVE LABOR ₱ 51,480.00
Manager 1 ₱ 19,500.00 ₱ 234,000.00 ₱ 957.70 ₱ 472.30 ₱ 10.00 ₱ 1,430.00 ₱ 17,160.00
Accountant 1 ₱ 15,600.00 ₱ 187,200.00 ₱ 957.70 ₱ 472.30 ₱ 10.00 ₱ 1,430.00 ₱ 17,160.00
Civil Engineer 1 ₱ 18,200.00 ₱ 218,400.00 ₱ 957.70 ₱ 472.30 ₱ 10.00 ₱ 1,430.00 ₱ 17,160.00
Page |76

(02) 779-5310 local 3006 / CELL #09228900917
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SCHEDULE 19: PHIL-HEALTH

NO OF SALARY EMPLOYER
DESCRIPTION TOTAL COST
EMPLOYEE Monthly Annually SHARE
Skilled Laborer 6 ₱ 70,200.00 ₱ 842,400.00 ₱ 137.50 ₱ 9,900.00
Production worker 10 ₱ 93,600.00 ₱ 1,123,200.00 ₱ 137.50 ₱ 16,500.00
Janitor 2 ₱ 18,200.00 ₱ 218,400.00 ₱ 137.50 ₱ 3,300.00
Operator 1 ₱ 13,000.00 ₱ 156,000.00 ₱ 137.50 ₱ 1,650.00
Driver 1 ₱ 10,920.00 ₱ 131,040.00 ₱ 137.50 ₱ 1,650.00
Security Guard 1 ₱ 10,140.00 ₱ 121,680.00 ₱ 137.50 ₱ 1,650.00
Manager 1 ₱ 19,500.00 ₱ 234,000.00 ₱ 137.50 ₱ 1,835.76
Accountant 1 ₱ 15,600.00 ₱ 187,200.00 ₱ 137.50 ₱ 1,835.76
Civil Engineer 1 ₱ 18,200.00 ₱ 218,400.00 ₱ 137.50 ₱ 1,835.76
SCHEDULE 20: PAG-IBIG

NO. OF SALARY EMPLOYER
DESCRIPTION TOTAL COST
EMPLOYEE MONTHLY ANNUALLY SHARE
Skilled Laborer 6 ₱ 70,200.00 ₱ 842,400.00 ₱ 137.50 ₱ 6,950.40
Production worker 10 ₱ 93,600.00 ₱ 1,123,200.00 ₱ 137.50 ₱ 3,475.20
Janitor 2 ₱ 18,200.00 ₱ 218,400.00 ₱ 144.80 ₱ 3,475.20
Operator 1 ₱ 13,000.00 ₱ 156,000.00 ₱ 144.80 ₱ 1,737.60
Driver 1 ₱ 10,920.00 ₱ 131,040.00 ₱ 144.80 ₱ 1,737.60
Security Guard 1 ₱ 10,140.00 ₱ 121,680.00 ₱ 144.80 ₱ 1,737.60
Manager 1 ₱ 19,500.00 ₱ 234,000.00 ₱ 137.50 ₱ 1,650.00
Accountant 1 ₱ 15,600.00 ₱ 187,200.00 ₱ 137.50 ₱ 1,650.00
Civil Engineer 1 ₱ 18,200.00 ₱ 218,400.00 ₱ 137.50 ₱ 1,650.00
Page |77

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SCHEDULE 21: 13th MONTH PAY

NO. OF MONTHLY
DESCRIPTION 13th MONTH PAY TOTAL COST
EMPLOYEE SALARY
Skilled Laborer 6 ₱ 70,200.00 ₱ 70,200.00 ₱ 70,200.00
Production worker 10 ₱ 93,600.00 ₱ 93,600.00 ₱ 93,600.00
Janitor 2 ₱ 18,200.00 ₱ 18,200.00 ₱ 18,200.00
Operator 1 ₱ 13,000.00 ₱ 13,000.00 ₱ 13,000.00
Driver 1 ₱ 10,920.00 ₱ 10,920.00 ₱ 10,920.00
Security Guard 1 ₱ 10,140.00 ₱ 10,140.00 ₱ 10,140.00
Manager 1 ₱ 19,500.00 ₱ 19,500.00 ₱ 19,500.00
Accountant 1 ₱ 15,600.00 ₱ 15,600.00 ₱ 15,600.00
Civil Engineer 1 ₱ 18,200.00 ₱ 18,200.00 ₱ 18,200.00
SCHEDULE 22: DEPRECIATION

ACQUISITION ESTIMATED ANNUAL
DESCRIPTION SAVAGE VALUE
COST LIFE DEPRECIATION
Production Machineries ₱ 210,000.00 ₱ 10,500.00 20 ₱ 9,975.00
Installation tool and Equipment ₱ 595,260.00 ₱ 29,763.00 15 ₱ 37,699.80
Fixtures and Furnitures ₱ 37,800.00 ₱ 1,890.00 10 ₱ 3,591.00
Transportation Vehicle ₱ 700,000.00 ₱ 35,000.00 15 ₱ 44,333.33
TOTAL ₱ 95,599.13
SCHEDULE 23: REPAIR AND MAINTENANCE

DESCRIPTION ACQUISITION COST R&M Cost ANNUAL COST
Production Machineries ₱ 210,000.00 ₱ 300.00 ₱ 3,600.00
Installation tool and Equipment ₱ 590,000.00 ₱ 1,000.00 ₱ 12,000.00
Transportation Vehicle ₱ 700,000.00 ₱ 1,000.00 ₱ 12,000.00
Page |78

(02) 779-5310 local 3006 / CELL #09228900917
____________________________________________
FINANCIAL STATEMENT
PROJECTED SALES
Description 2018 2019 2020 2021 2022
Beginning Inventory ₱ - 847.40 847.40 847.40 847.40
ADD: Production Volume ₱ 16,948.00 ₱ 16,948.00 ₱ 16,948.00 ₱ 16,948.00 ₱ 16,948.00
Total ₱ 16,948.00 ₱ 17,795.40 ₱ 17,795.40 ₱ 17,795.40 ₱ 17,795.40
LESS: Ending Inventory ₱ 847.40 ₱ 847.40 ₱ 847.40 ₱ 847.40 ₱ 847.40
Volume Sold ₱ 16,100.60 ₱ 16,948.00 ₱ 16,948.00 ₱ 16,948.00 ₱ 16,948.00
Selling Price ₱ 431.35 ₱ 452.92 ₱ 475.57 ₱ 499.34 ₱ 524.31
Total Annual Sales ₱ 6,945,028.91 ₱ 7,676,084.59 ₱ 8,059,888.82 ₱ 8,462,883.26 ₱ 8,886,027.42
PROJECTED ENDING INVENTORY
Ending Inventory ₱ 847.40 ₱ 847.40 ₱ 847.40 ₱ 847.40 ₱ 847.40
Selling price ₱ 431.35 ₱ 452.92 ₱ 475.57 ₱ 499.34 ₱ 524.31
Amount of Finished Goods Inventory ₱ 365,527.84 ₱ 383,804.23 ₱ 402,994.44 ₱ 423,144.16 ₱ 444,301.37
COST OF GOODS SOLD
Direct Material Cost ₱ 1,676,860.00 ₱ 1,760,703.00 ₱ 1,848,738.15 ₱ 1,941,175.06 ₱ 2,038,233.81
Direct Labor Cost ₱ 2,324,625.60 ₱ 2,388,507.60 ₱ 2,454,306.06 ₱ 2,522,078.47 ₱ 2,591,884.06
Manufacturing Overhead Cost ₱ 955,304.16 ₱ 984,814.41 ₱ 1,015,357.58 ₱ 1,046,972.01 ₱ 1,079,697.61
Total Manufacturing Cost ₱ 4,956,789.76 ₱ 5,134,025.01 ₱ 5,318,401.79 ₱ 5,510,225.54 ₱ 5,709,815.48
ADD: Finish Goods Inventory ₱ - ₱ 365,527.84 ₱ 383,804.23 ₱ 402,994.44 ₱ 423,144.16
Total Sale of Available Goods ₱ 4,956,789.76 ₱ 5,499,552.85 ₱ 5,702,206.02 ₱ 5,913,219.99 ₱ 6,132,959.65
LESS: Amount of Finished Goods Inventory ₱ 365,527.84 ₱ 383,804.23 ₱ 402,994.44 ₱ 423,144.16 ₱ 444,301.37
Total Amount of Goods Sold ₱ 4,591,261.92 ₱ 5,115,748.62 ₱ 5,299,211.57 ₱ 5,490,075.82 ₱ 5,688,658.27
BAD DEBT EXPENSE

Description 2018 2019 2020 2021 2022
Total Sales ₱ 6,945,028.91 ₱ 7,676,084.59 ₱ 8,059,888.82 ₱ 8,462,883.26 ₱ 8,886,027.42
Bad Debt Rate 2% 2% 2% 2% 2%
Total Bad Debt Expense ₱ 138,900.58 ₱ 153,521.69 ₱ 161,197.78 ₱ 169,257.67 ₱ 177,720.55
ACCOUNT RECEIVABLE EXPENSE
Gross Profit ₱ 2,353,766.99 ₱ 2,560,335.97 ₱ 2,760,677.24 ₱ 2,972,807.44 ₱ 3,197,369.15
A/C Rate 5% 5% 5% 5% 5%
Total Accounts Receivable Expense ₱ 117,688.35 ₱ 128,016.80 ₱ 138,033.86 ₱ 148,640.37 ₱ 159,868.46
SCHEDULE OF PARTNERSHIP TAX EXPENSE
Gross Profit ₱ 2,353,766.99 ₱ 2,560,335.97 ₱ 2,760,677.24 ₱ 2,972,807.44 ₱ 3,197,369.15
LESS: Selling and Administrative Expense ₱ 1,709,166.42 ₱ 1,482,174.19 ₱ 1,537,339.64 ₱ 1,594,865.88 ₱ 1,654,859.03
Net Income Before Tax ₱ 644,600.58 ₱ 1,078,161.78 ₱ 1,223,337.61 ₱ 1,377,941.55 ₱ 1,542,510.11
Tax Rate 30% 30% 30% 30% 30%
Partnership Tax ₱ 193,380.17 ₱ 323,448.53 ₱ 367,001.28 ₱ 413,382.47 ₱ 462,753.03
SCHEDULE OF ACCOUNTS PAYABLE
Net Income ₱ 451,220.40 ₱ 754,713.25 ₱ 856,336.32 ₱ 964,559.09 ₱ 1,079,757.08
A/P Rate 5% 5% 5% 5% 5%
Accounts Payable ₱ 22,561.02 ₱ 37,735.66 ₱ 42,816.82 ₱ 48,227.95 ₱ 53,987.85
SCHEDULE OF CASH DIVIDENDS
Net Income ₱ 451,220.40 ₱ 754,713.25 ₱ 856,336.32 ₱ 964,559.09 ₱ 1,079,757.08
Cash Dividend Rate 30% 30% 30% 30% 30%
Cash Dividend ₱ 135,366.12 ₱ 226,413.97 ₱ 256,900.90 ₱ 289,367.73 ₱ 323,927.12
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PROJECTED INCOME STATEMENT

Description 2018 2019 2020 2021 2022
Total Annual Sales ₱ 6,945,028.91 ₱ 7,676,084.59 ₱ 8,059,888.82 ₱ 8,462,883.26 ₱ 8,886,027.42
LESS: Cost of Goods Sold ₱ 4,591,261.92 ₱ 5,115,748.62 ₱ 5,299,211.57 ₱ 5,490,075.82 ₱ 5,688,658.27
Gross Profit ₱ 2,353,766.99 ₱ 2,560,335.97 ₱ 2,760,677.24 ₱ 2,972,807.44 ₱ 3,197,369.15
LESS: Selling and Administrative Expense ₱ 1,570,265.84 ₱ 1,328,652.49 ₱ 1,376,141.86 ₱ 1,425,608.22 ₱ 1,477,138.49
LESS: Bad Debts ₱ 138,900.58 ₱ 153,521.69 ₱ 161,197.78 ₱ 169,257.67 ₱ 177,720.55
Total Expenses ₱ 1,709,166.42 ₱ 1,482,174.19 ₱ 1,537,339.64 ₱ 1,594,865.88 ₱ 1,654,859.03
Net Income Before Tax ₱ 644,600.58 ₱ 1,078,161.78 ₱ 1,223,337.61 ₱ 1,377,941.55 ₱ 1,542,510.11
LESS: Partnership Tax (30%) ₱ 193,380.17 ₱ 323,448.53 ₱ 367,001.28 ₱ 413,382.47 ₱ 462,753.03
NET INCOME ₱ 451,220.40 ₱ 754,713.25 ₱ 856,336.32 ₱ 964,559.09 ₱ 1,079,757.08
ADD: Retained Earnings ₱ - ₱ 315,854.28 ₱ 844,153.55 ₱ 1,443,588.98 ₱ 2,118,780.34
Cash dividend Rate ₱ 0.30 ₱ 0.30 ₱ 0.30 ₱ 0.30 ₱ 0.30
LESS: CASH DIVIDENDS ₱ 135,366.12 ₱ 226,413.97 ₱ 256,900.90 ₱ 289,367.73 ₱ 323,927.12
TOTAL EARNINGS ₱ 315,854.28 ₱ 844,153.55 ₱ 1,443,588.98 ₱ 2,118,780.34 ₱ 2,874,610.30
PROJECTED CASH FLOW STATEMENT

Description 2018 2019 2020 2021 2022
Cash/Capital ₱ 3,646,776.89 ₱ 2,372,832.97 ₱ 3,317,431.85 ₱ 4,851,684.06 ₱ 7,060,868.16
Cash Flow from Operating Expense
Less: Accounts Receivable ₱ 117,688.35 ₱ 128,016.80 ₱ 138,033.86 ₱ 148,640.37 ₱ 159,868.46
Accounts Payable ₱ 22,561.02 ₱ 37,735.66 ₱ 42,816.82 ₱ 48,227.95 ₱ 53,987.85
Collection of Accounts Receivable ₱ 117,688.35 ₱ 128,016.80 ₱ 138,033.86 ₱ 148,640.37
Payment of Accounts Payable ₱ 22,561.02 ₱ 37,735.66 ₱ 42,816.82 ₱ 48,227.95
Cash Balance, Beginning ₱ 315,854.28 ₱ 844,153.55 ₱ 1,443,588.98 ₱ 2,118,780.34
Gross Profit ₱ 2,353,766.99 ₱ 2,560,335.97 ₱ 2,760,677.24 ₱ 2,972,807.44 ₱ 3,197,369.15
Less: Total Expenses ₱ 1,709,166.42 ₱ 1,482,174.19 ₱ 1,537,339.64 ₱ 1,594,865.88 ₱ 1,654,859.03
Less: Partnership Expense ₱ 193,380.17 ₱ 323,448.53 ₱ 367,001.28 ₱ 413,382.47 ₱ 462,753.03
Add: Depreciation ₱ 95,599.13 ₱ 95,599.13 ₱ 95,599.13 ₱ 95,599.13 ₱ 95,599.13
Net Cash in Operating Activities ₱ 451,692.21 ₱ 1,171,012.86 ₱ 1,791,153.10 ₱ 2,498,551.83 ₱ 3,288,668.37
Cash Flow from Investing Activities
Production Machineries ₱ 210,000.00
Installation Tool and Equipment ₱ 595,260.00
Fixtures and Furnitures ₱ 37,800.00
Office Tools and Equipments ₱ 47,210.00
Transportation Vehicle ₱ 700,000.00
Net Cash in Investing Activities ₱ 1,590,270.00
Cash Flow From Financing Activities
Payment of Cash Dividend ₱ 135,366.12 ₱ 226,413.97 ₱ 256,900.90 ₱ 289,367.73 ₱ 323,927.12
Net Cash in Financing Activities ₱ 135,366.12 ₱ 226,413.97 ₱ 256,900.90 ₱ 289,367.73 ₱ 323,927.12
NET CASH FLOW -₱ 1,273,943.91 ₱ 944,598.88 ₱ 1,534,252.20 ₱ 2,209,184.10 ₱ 2,964,741.25
Cash, Balance End ₱ 2,372,832.97 ₱ 3,317,431.85 ₱ 4,851,684.06 ₱ 7,060,868.16 ₱ 10,025,609.41
CAPITAL STATEMENT
Description 2018 2019 2020 2021 2022
Capital Investment ₱ 3,646,776.89 ₱ 3,962,631.17 ₱ 4,806,784.72 ₱ 6,250,373.71 ₱ 8,369,154.05
Add: Retained Earnings, end ₱ 315,854.28 ₱ 844,153.55 ₱ 1,443,588.98 ₱ 2,118,780.34 ₱ 2,874,610.30
Total Capital ₱ 3,962,631.17 ₱ 4,806,784.72 ₱ 6,250,373.71 ₱ 8,369,154.05 ₱ 11,243,764.35
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(02) 779-5310 local 3006 / CELL #09228900917
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BALANCE SHEET
ASSETS 2018 2019 2020 2021 2022
Cash Balance ₱ 2,372,832.97 ₱ 3,317,431.85 ₱ 4,851,684.06 ₱ 7,060,868.16 ₱ 10,025,609.41
Accounts Receivable ₱ 117,688.35 ₱ 128,016.80 ₱ 138,033.86 ₱ 148,640.37 ₱ 159,868.46
Total Current Asset ₱ 2,490,521.32 ₱ 3,445,448.65 ₱ 4,989,717.92 ₱ 7,209,508.54 ₱ 10,185,477.87
Fixed Asset
Production Machineries ₱ 210,000.00 ₱ 210,000.00 ₱ 210,000.00 ₱ 210,000.00 ₱ 210,000.00
Installation Tool and Equipment ₱ 595,260.00 ₱ 595,260.00 ₱ 595,260.00 ₱ 595,260.00 ₱ 595,260.00
Fixtures and Furnitures ₱ 37,800.00 ₱ 37,800.00 ₱ 37,800.00 ₱ 37,800.00 ₱ 37,800.00
Office Tools and Equipments ₱ 47,210.00 ₱ 47,210.00 ₱ 47,210.00 ₱ 47,210.00 ₱ 47,210.00
Transportation Vehicle ₱ 700,000.00 ₱ 700,000.00 ₱ 700,000.00 ₱ 700,000.00 ₱ 700,000.00
Accumulated Depreciation ₱ 95,599.13 ₱ 191,198.27 ₱ 286,797.40 ₱ 382,396.53 ₱ 477,995.67
Total Fixed Asset ₱ 1,494,670.87 ₱ 1,399,071.73 ₱ 1,303,472.60 ₱ 1,207,873.47 ₱ 1,112,274.33
Total Assets 3,985,192.19 4,844,520.39 6,293,190.52 8,417,382.00 11,297,752.20
Liabilities and Stockholders equity
Description 2018 2019 2020 2021 2022
Liabilities and Equity
Accounts payable ₱ 22,561.02 ₱ 37,735.66 ₱ 42,816.82 ₱ 48,227.95 ₱ 53,987.85
Total Liabilities ₱ 22,561.02 ₱ 37,735.66 ₱ 42,816.82 ₱ 48,227.95 ₱ 53,987.85
Stockholders Equity
Capital Stock ₱ 3,646,776.89 ₱ 3,962,631.17 ₱ 4,806,784.72 ₱ 6,250,373.71 ₱ 8,369,154.05
Add: Retained Earnings ₱ 315,854.28 ₱ 844,153.55 ₱ 1,443,588.98 ₱ 2,118,780.34 ₱ 2,874,610.30
ATOMM Soil Solution Company Capital ₱ 3,962,631.17 ₱ 4,806,784.72 ₱ 6,250,373.71 ₱ 8,369,154.05 ₱ 11,243,764.35
Stockholders Equity ₱ 3,962,631.17 ₱ 4,806,784.72 ₱ 6,250,373.71 ₱ 8,369,154.05 ₱ 11,243,764.35
TOTAL LIABILITIES AND
₱ 3,985,192.19 ₱ 4,844,520.39 ₱ 6,293,190.52 ₱ 8,417,382.00 ₱ 11,297,752.20
STOCKHOLDERS EQUITY
COMPUTATION OF UNIT SELLING PRICE

Description Schedule Cost
Direct Materials 9 ₱ 1,676,860.00
Direct Labor 12-A ₱ 1,965,600.00
Manufacturing Overhead Cost - ₱ 955,304.16
Installation Cost 2 ₱ 82,033.13
Total Manufacturing Cost ₱ 4,679,797.29
DIVIDE: Annual Production Volume 16948
Total Manufacturing Cost per Unit ₱ 276.13
Installation Fee ₱ 100.00
Mark-up of 20% ₱ 55.23
Total Selling Price ₱ 431.35
Page |81

(02) 779-5310 local 3006 / CELL #09228900917
____________________________________________
FINANCIAL ANALYSIS
BREAKEVEN POINT FOR YEAR 2018

Description
Variable Cost
Total Manufacturing Cost ₱ 4,679,797.29
Production Volume 16948
Total ₱ 276.13
Fixed Cost
Total Fixed Cost 1,590,270.00
Total ₱ 63,610.80
BEP for Year 2017
Total Fixed Cost ₱ 1,590,270.00
Variable Cost ₱ 276.13
Selling price ₱ 431.35
Total Number of Units 10245
RETURN OF INVESTMENT 2018 2019 2020 2021 2022

Net Income ₱451,220.40 ₱754,713.25 ₱856,336.32 ₱964,559.09 ₱1,079,757.08
ROI=
Total Investment ₱3,646,776.89 ₱3,646,776.89 ₱3,646,776.89 ₱3,646,776.89 ₱3,646,776.89
AVERAGE RATE OF RETURN PAYBACK PERIOD

Average Income Total Investment
ARR= PBP=
Total Investment Average Income
₱821,317.23 ₱3,646,776.89
ARR= PBP=
₱3,646,776.89 ₱821,317.23
ARR= 22.52% PBP= 4.44 years
Page |82

(02) 779-5310 local 3006 / CELL #09228900917
____________________________________________
Page |83

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A FEASIBILITY STUDY ON PERFORATED PLASTIC

BOTTLES AS SUBSURFACE DRAINAGE AND SLOPE PROTECTION

The Faculty of College of Engineering and Aviation

University of Perpetual Help System Laguna

City of Biñan, Laguna

In Partial Fulfillment for the

Requirements for the Degree of

Bachelor of Science of Civil Engineering

AGNAS, Laurence Angelo G.

ODO, Marcres T. Jr.

Engr. GONZALES, Teresita B.

Engr. HERNANDEZ, Emiterio C.

College of Engineering and Aviation

College of Engineering and Aviation

The use of geosynthetic materials is not new in the Philippines. Research on

Incorporating solid wastes, polyethylene terephthalate (PET) bottles specifically,

College of Engineering and Aviation

1.2 OBJECTIVE OF THE STUDY

1.3 PROJECT FIRM AND PRODUCT DESCRIPTION

1.3.1 COMPANY NAME AND LOGO

Figure 1.1: Company Logo

College of Engineering and Aviation

1.3.2 COMPANY MISSION AND VISION

College of Engineering and Aviation

1.3.3 CHANNEL OF DISTRIBUTION

Figure 1.2: Channel of Distribution

College of Engineering and Aviation

1.3.4 PRODUCT DESCRIPTION

Figure 1.3: Product Logo and Name

College of Engineering and Aviation

Figure 1.4: Conceptual Application of TERRAcells

College of Engineering and Aviation

Figure 1.5: Actual Application of TERRAcells

Figure 1.6: Drawing and Design of PET Bottle Geocells

College of Engineering and Aviation

1.3.5 S.W.O.T. ANALYSIS

College of Engineering and Aviation

1.4 PROPOSED MARKETING STRATEGY

1.4.1 SUPPLY AND DEMAND ANALYSIS

1.4.2 STATISTICAL TREATMENT OF DATA

College of Engineering and Aviation

1.4.2.1 HISTORICAL DATA

YEAR AREA OF PROTECTED SLOPE (SQ.M)

College of Engineering and Aviation

1.4.2.3 SEMI-LOG METHOD

1.4.2.4 PARABOLIC METHOD

1.4.2.5 COMPUTED VALUES OF STANDARD DEVIATION

College of Engineering and Aviation

Equation 1: Standard Deviation for Statistical Treatment of Data

Method Computed Standard Deviation

1.4.2.6 PROJECTED SUPPLY FOR THE NEXT 5 YEARS

YEAR Y X X^2 X^4 XY (X^2)(Y) Projected Yc (sq.m)

College of Engineering and Aviation

LINE CHART FOR DEMAND AND SUPPLY (2018– 2022)

Demand and Supply

1.4.2 SURVEY SAMPLE AND RESULTS

College of Engineering and Aviation

CITY/MUNICIPALITY 2014 2015 2016 2017

1.4.3.1 DETERMINING THE SAMPLE SIZE

Where: N= total population size

n= desired sample size

e= 5% as the percent error