PFS 2018 Group No. 5 Citric Mosquito Repellent Coil V.2.0 PDF

Republic of the Philippines
DON HONORIO VENTURA TECHNOLOGICAL STATE UNIVERSITY

Bacolor, Pampanga
College of Engineering and Architecture

Department of Industrial Engineering
CITRIC MOSQUITO-REPELLENT COIL
A Project Feasibility Study

Presented to the College of Engineering and Architecture
Don Honorio Ventura Technological State University
In Partial Fulfillment of the

Requirements for the Degree of
Bachelor of Science in Industrial Engineering
Dantes, Eric A.
Guevarra, Arldhail S.
Guevarra, Jayson Noel E.
Laxamana, Hezel Grace C.
Limpin, Zairrah K.
Torres, Jerome Christian A.
October, 2018
APPROVAL SHEET
The project feasibility study entitled Citric Mosquito-Repellent Coil prepared
and submitted by Eric A. Dantes, Arldhail S. Guevarra, Jayson Noel E.
Guevarra, Hezel Grace C. Laxamana, Zairrah K. Limpin, and Jerome
Christian A. Torres in partial fulfillment of the requirements for the degree of
Bachelor of Science in Industrial Engineering has been examined and is
recommended for acceptance and approval for oral examination.
Engr. Nicole L. Lumod Engr. Julius M. Velasco, MM

Consultant Adviser
Approved by the committee on oral examination with a grade of _____ on

October 22, 2018.
Engr. Dave Paulo C. Pangilinan Engr. Khimpoy Y. Pamintuan

Member Member
Accepted in partial fulfillment of the requirements for the degree of Bachelor of

Science in Industrial Engineering.
Engr. Anna Liza C. Nacion, MBA

Chairperson, Department of Industrial Engineering
Engr. Jun P. Flores. PECE, MEP-EE

Dean, College of Engineering and Architecture
ACKNOWLEDGMENT
This project feasibility study would not have been possible without the
guidance and help of several individuals who in one way or another contributed
and extended their valuable assistance in the preparation and completion of this
study. This study has been made possible by the guidance, supervision, and
cooperation of the following:
The Almighty God who always looks up and secures the safety of the
proponents and for giving them wisdom in doing this study;
The proponents’ parents who always guide and give words of wisdom to
inspire them in doing their best; for giving them both financial and emotional
support;
Engr. Jun P. Flores and Engr. Julius M. Velasco who supervised and
encouraged the proponents all throughout the study; and
Engr. Nicole L. Lumod who greatly shared her knowledge with patience
and diligence in helping the proponents meet the necessary works for the
completion of this study.
Together, the proponents sincerely acknowledge and give thanks to the
persons mentioned above who have brought the success of doing this feasibility
study. The proponents are very grateful for this wonderful accomplishment.
EXECUTIVE SUMMARY
Solid waste management is a term that is used to refer to the process of
collecting and treating solid wastes. It also offers solutions for recycling items that
do not belong to garbage or trash. In this study, the proponents aim to help in
reducing solid waste as they create a useful product that is both environmental-
and health-friendly.
ECo. is a start-up business partnership of six people. The business
specializes in chemical-free mosquito coil, under the product name Ecoil. As a
support to a campaign that highlights solid waste reduction, the base material
that is used in producing Ecoil is dried calamansi peels from establishments like
fast-food restaurants, fruit juice bars and stalls, and small eateries. The citric
mosquito-repellent coil provides hours of protection against unwanted mosquito
bites. ECo.’s target market is the household population of Guagua, Pampanga—
where the plant is also located. As part of the technical study, the proponents
designed a workstation that is furnished with the tools and equipment, along with
furniture and fixtures. A discussion of finances—particularly Ecoil’s selling price
and ECo.’s payback period—is also discussed in the financial study. Taking
everything into account, ECo.’s key to success is a partnership with the earth as
it provides its beneficial product to the society.
In doing this study, the proponents were able to apply their gained
knowledge from different Industrial Engineering principles.

TABLE OF CONTENTS
List of Figures............................................................................................. vii

List of Tables ............................................................................................. viii
CHAPTER 1: Project Background and History ................................................................. 1
1.1 History of Insect Repellent .................................................................... 2
1.2 Facts about Calamansi Peel................................................................. 4
1.3 Facts about Candle Wax ...................................................................... 4
1.4 Facts about Starch ................................................................................ 5
1.5 Facts about Isopropyl Alcohol ............................................................. 5
1.6 Facts about Citronella Oil ..................................................................... 5
1.7 Proposed Name of the Product ............................................................ 7
1.8 Proposed Company Name ................................................................... 8
1.9 Proposed Location of the Company ..................................................... 9
CHAPTER 2: Organization and Management Study ...................................................... 10
2.1 Vision, Mission, and Objectives .......................................................... 10
2.1.1. Vision .................................................................................. 10
2.1.2. Mission ................................................................................ 10
2.1.3. Objectives ........................................................................... 10
2.2 Proposed Form of Business ............................................................... 11
2.3 Advantages of Partnership ................................................................. 11
2.4 Type of Organizational Structure ........................................................ 12
2.4.1 Organizational Chart ............................................................ 12

2.5 Capitalization ...................................................................................... 13
2.6 Job Description and Specifications .................................................... 14
2.6.1 General Manager ................................................................. 15
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2.6.2 Production Head .................................................................. 16
2.6.3 Finance Head....................................................................... 17
2.6.4 Administrative Head............................................................. 18
2.6.5 Quality Assurance and Quality Control Analyst .................. 19
2.6.6 Cashier ................................................................................. 20
2.6.7 Production Crew .................................................................. 21
2.6.8 General Service Crew ......................................................... 22
2.7 Manpower Requirements ................................................................... 23
2.8 Compensation Scheme and Benefits ................................................. 24
2.8.1 Financial benefits ................................................................. 24
2.8.1.A 13th month pay..................................................... 24
2.8.1.B Overtime pay ........................................................ 24
2.8.1.C Holiday pay........................................................... 25
2.9 Hiring Policies ..................................................................................... 26
2.10 Recruitment and Hiring Procedures ................................................. 26
2.10.1 Recruitment and hiring policy ............................................ 29
2.10.2 Recruitment program ......................................................... 29
2.10.2.A Social Security System benefits......................... 30
2.10.2.B Pag-IBIG fund..................................................... 30
2.10.2.C PhilHealth ........................................................... 30
2.10.2.D Non-financial benefits ........................................ 30
2.10.2.E Sick leave ........................................................... 31
2.10.2.F Service incentive leave....................................... 31
2.11 Management Policies System and Strategies ................................. 31
2.11.1 Health, safety, and environment........................................ 32
2.11.2 Entrance of the property .................................................... 32
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2.11.3 Fire protection .................................................................... 32
2.12 House Rule Policies.......................................................................... 33
2.12.1 Housekeeping .................................................................... 33
2.13 Policies in Production ....................................................................... 34
2.14 Termination of Employment.............................................................. 35
2.14.1 Termination by General Manager...................................... 36
2.14.2 Employee resignation ........................................................ 36
2.14.3 Retirement from the service .............................................. 37
Conclusion ................................................................................................ 38
CHAPTER 3: Market Study ............................................................................................. 40
3.1 Target Market...................................................................................... 41
3.2 Market Survey Analysis ...................................................................... 44
3.3 Demand and Supply Analysis............................................................. 49
3.3.1 Demand Analysis ................................................................. 49
3.3.1.A Computation for monthly consumption rate. ........ 50
3.3.1.B Computation for historical demand ...................... 51
3.3.1.C Methods for computing projected demand .......... 52
3.3.1.C.a Arithmetic straight line method ............. 52
3.3.1.C.b Statistical semi log method ................... 54
3.3.1.C.c Parabolic projection method ................. 57
3.3.1.D Standard deviation (demand) .............................. 60
3.3.1.D.a Arithmetic straight line method ............. 60
3.3.1.D.b Statistical semi log method ................... 61
3.3.1.D.c Parabolic projection method ................. 62
3.3.1.E Computation for historical supply ......................... 63
3.3.1.F Methods of computing projected supply .............. 65
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3.3.1.F.a Arithmetic straight line method .............. 65
3.3.1.F.b Statistical semi log method ................... 67
3.3.1.F.c Parabolic projection method .................. 70
3.3.1.G Standard deviation (supply) ................................. 73
3.3.1.G.a Arithmetic straight line method ............. 73
3.3.1.G.b Statistical semi log method ................... 74
3.3.1.G.c Parabolic projection method ................. 75
3.3.1.H Demand and supply gap analysis ........................ 76
3.3.1.I Projected demand and supply gap analysis ......... 77
3.3.1.J Competitors market share .................................... 78
3.3.1.K Volume of production ........................................... 78
3.4 Marketing Program and System ......................................................... 80
3.5 Pricing Strategies ................................................................................ 80
3.6 Channel of Distribution ....................................................................... 81
3.7 Marketing ............................................................................................ 83
3.8 Branding .............................................................................................. 83
3.9 Labelling and Packaging .................................................................... 84
Conclusion ................................................................................................ 86
CHAPTER 4: Technical Study ........................................................................................ 88
4.1 Product ................................................................................................ 88
4.1.1 Specifications. ...................................................................... 88
4.2 Raw Materials and Suppliers .............................................................. 89
4.2.1 List of raw materials ............................................................. 90
4.2.2 List of suppliers of raw materials ......................................... 92
4.2.3 List of materials .................................................................... 93
4.2.4 List of suppliers of materials ................................................ 95
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4.3 Production Tools and Equipment ....................................................... 96
4.4 Material Handling Equipment ........................................................... 102
4.5 Production Worker Uniform .............................................................. 104
4.6 Furniture, Fixtures and Equipment ................................................... 107
4.6.1 Office .................................................................................. 107
4.6.2 Production .......................................................................... 110
4.6.3 Toilet room ......................................................................... 111
4.6.4 Breakroom ......................................................................... 112
4.6.5 Tool room ........................................................................... 113
4.7 Manufacturing Process ..................................................................... 114
4.7.1 Process Description ........................................................... 115
4.8 Time Study ........................................................................................ 118
4.9 Production Schedule ......................................................................... 119
4.10 Plant Layout .................................................................................... 120
4.11 Floor Diagram ................................................................................. 121
4.12 Plant Location ................................................................................. 122
4.12.1 Supply of utilities .............................................................. 123
4.12.1.A Power supply .................................................... 123
4.12.1.B Water supply .................................................... 123
4.12.1.C Telephone/internet connection ........................ 123
4.12.2 Accessibility ..................................................................... 124
4.12.3. Safety .............................................................................. 124
4.13 Waste Disposal Management ........................................................ 124
Conclusion .............................................................................................. 125
CHAPTER 5: Financial Study ....................................................................................... 126
5.1 ECo.’s Major Financial Assumptions ................................................ 127
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5.2 Project Cost ...................................................................................... 129
5.3 Pre-operating Cash Flows ................................................................ 130
5.4 Pre-operating Statement of Financial Position ................................. 131
5.5 Table of Equipment........................................................................... 132
5.6 Schedule of Depreciation and Amortization ..................................... 134
5.7 Schedule of Pre-operating Expenses ............................................... 136
5.8 Direct and Indirect Materials Requirements ..................................... 137
5.9 Unit Cost and Cost of Goods Sold ................................................... 142
5.10 Payroll ............................................................................................. 144
5.11 Projected Sales ............................................................................... 154
5.12 Schedule of Financial Statement Accounts ................................... 155
5.13 Schedule of Utilities ........................................................................ 159
5.14 Projected Statement of Comprehensive Income ........................... 161
5.15 Projected Statement of Partners’ Equity ........................................ 162
5.16 Projected Statement of Financial Position ..................................... 164
5.17 Financial Ratio Analysis ................................................................. 166
Conclusion .............................................................................................. 168
CHAPTER 6: Socio-Economic Study............................................................................ 170
6.1 Economic Contribution...................................................................... 171
6.2 Social Contribution ............................................................................ 171
6.3 Environmental Contribution .............................................................. 172
Conclusion .............................................................................................. 173
REFERENCES ............................................................................................................... 174
APPENDICES ................................................................................................................. 181
Appendix A .............................................................................................. 181
Appendix B .............................................................................................. 182
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LIST OF FIGURES
1.1. Proposed product name .............................................................................................. 7
1.2. Proposed company name and logo............................................................................. 8
1.3. Proposed company location ........................................................................................ 9
2.1. Organizational chart................................................................................................... 12
2.2. Recruitment and hiring process ................................................................................. 27
3.1. The result of survey question number one ................................................................ 44
3.2. The result of survey question number two ................................................................ 45
3.3. The result of survey question number three ............................................................. 46
3.4. The result of survey question number four................................................................ 47
3.5. The result of survey question number fiv .................................................................. 48
3.6. Pricing strategy of ECo. ............................................................................................. 81
3.7. Direct distribution ....................................................................................................... 82
3.8. Indirect distribution ..................................................................................................... 82
3.9. Brand name of the company ..................................................................................... 83
3.10. Packaging ................................................................................................................ 85
4.1. Actual product ............................................................................................................ 89
4.2. Preparation process flow chart ................................................................................ 114
4.3. Process flow chart ................................................................................................... 114
4.4. Plant layout .............................................................................................................. 120
4.5. Floor diagram ........................................................................................................... 121
4.6. Plant location .......................................................................................................... 122
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LIST OF TABLES
2.1. Capital Contribution ................................................................................................... 13
2.2. Required number of manpower ................................................................................. 23
2.3. Regular, special, and local holidays .......................................................................... 25
3.1. Barangays of Guagua, Pampanga ............................................................................ 42
3.2. Total number of household population of Guagua, Pampanga ................................ 43
3.3. Household population of Guagua, Pampanga .......................................................... 49
3.4. Computation for monthly consumption rate .............................................................. 50
3.5. Computation for historical demand............................................................................ 51
3.6. Historical demand of arithmetic straight line method ................................................ 52
3.7. Projected demand of arithmetic straight line method ................................................ 53
3.8. Historical demand in statistical semi log ................................................................... 54
3.9. Projected demand in statistical semi log method ...................................................... 56
3.10. Historical demand in parabolic method ................................................................... 57
3.11. Projected demand in parabolic method................................................................... 59
3.12. Arithmetic straight line method and the standard deviation .................................... 60
3.13. Statistical semi log method and the standard deviation.......................................... 61
3.14. Parabolic projection method and the standard deviation ........................................ 62
3.15. Annual supply of competitors for the year 2013...................................................... 63
3.20. Total annual supply of competitors from the year 2013 to 2017 ............................ 64
3.21. Historical supply in arithmetic straight line method ................................................. 65
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3.22. Projected supply in arithmetic straight line method ................................................ 66
3.23. Historical supply in statistical semi log method ....................................................... 67
3.24. Projected supply in statistical semi log method ...................................................... 69
3.25. Statistical supply in parabolic projection method .................................................... 70
3.26. Historical supply in parabolic projection method ..................................................... 72
3.27. Standard deviation of arithmetic straight line method ............................................. 73
3.28. Standard deviation of statistical semi log method ................................................... 74
3.29. Standard deviation of parabolic projection method ................................................. 75
3.30. Historical demand and supply gap analysis ............................................................ 76
3.31. Projected demand and supply gap analysis ........................................................... 77
3.32. Competitors market share ....................................................................................... 78
3.33. Volume of production ............................................................................................... 78
3.34. Projected production from 2018-2022 ..................................................................... 79
3.35. Projected supply from 2018-2022 ........................................................................... 79
4.1. List of raw materials ................................................................................................... 90
4.2. List suppliers of raw materials ................................................................................... 92
4.3. List of materials .......................................................................................................... 93
4.4. List suppliers of materials .......................................................................................... 95
4.5. List of production tools and equipment ..................................................................... 96
4.6. List of material handling equipment......................................................................... 102
4.7. Production worker uniform ....................................................................................... 104
4.8. Office FFE ................................................................................................................ 107
4.9. Production FFE ........................................................................................................ 110
4.10. Toilet Room FFE .................................................................................................... 111
4.11. Breakroom FFE ..................................................................................................... 112
4.12. Tool Room FFE ..................................................................................................... 113
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4.13. Process description ............................................................................................... 115
4.14. Time study ............................................................................................................. 118
4.15. Production schedule .............................................................................................. 119
4.16. Daily volume of production .................................................................................... 119
5.1. Project cost .............................................................................................................. 129
5.2. Pre-operating cash flows ......................................................................................... 130
5.3. Pre-operating statement of financial position .......................................................... 131
5.4. Table of equipment .................................................................................................. 132
5.5. Schedule of depreciation and amortization ............................................................. 134
5.6. Schedule of pre-operating expenses ...................................................................... 136
5.7. Materials requirements ............................................................................................ 139
5.8. Unit cost and cost of goods sold ............................................................................. 142
5.9. Payroll ...................................................................................................................... 144
5.10. Projected sales ...................................................................................................... 154
5.11. Schedule of financial statement accounts ............................................................. 155
5.12. Schedule of utilities ................................................................................................ 159
5.13. Projected statement of comprehensive income .................................................... 161
5.14. Projected statement of partners’ equity................................................................. 162
5.15. Projected statement of financial position............................................................... 164
5.16. Financial ratio analysis .......................................................................................... 166
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CHAPTER 1
Project Background and History
Solid waste management is one of the major problems that the Philippines
is currently facing. According to an Asian Development Bank (ADB) expert, last
2017, the Philippines generates about 35,000 tons of garbage daily (Plaza,
2017). Aside from solid waste management, another problem of the country is
the increasing number of Filipinos who acquire diseases from insects like
mosquitoes. Mosquitoes carry Japanese encephalitis and dengue (Gonzales,
2016). These disease-carrying insects threaten the health of many Filipinos.
Solid waste and the health of the Filipinos are two main contributing factors that
lead the proponents to come up with the idea of establishing a company that
manufactures mosquito-repellent coil made from the peels of citrus fruits,
specifically, calamansi.
Calamansi is mostly used for its juice, either for drinks or for food. Most
people and establishments—fast food restaurants, fruit juice bars and stalls, and
small eateries—consider this fruit as waste after squeezing the juice from it.
What these people and establishments do not know is that the peel of the
calamansi fruit can be used as insect repellent, particularly for mosquitoes. The
proponents would like to make these so-considered wastes from the
aforementioned establishments as a product that will not only help to reduce
waste, but to also prevent diseases that mosquitoes transmit.

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Citric mosquito-repellent coil is a coil made basically from the peel of the
calamansi fruit. Unlike most coils in the market, this coil is free from toxic
chemicals but still does its job because of the aroma of the citrus fruit peels that
mosquitoes hate. The properties contained by calamansi peelings contribute in
repelling mosquitoes (Gragasin, 2017).
The proponents aim to reduce solid waste and help prevent the number of
cases of mosquito-borne diseases from increasing, because the proponents
strongly believe that prevention is always better than cure—environment-wise
and health-wise.
1.1 History of Insect Repellent
Insect repellents are alternatives to the use of insecticides. They may be
applied to the skin or to other surfaces which discourages insects from landing or
climbing on that surface to protect an individual from insect bites. The use of
insect repellent compounds dates back to antiquity, when various plant oils,
smokes, and tars were used to displace or kill insects. Before the Second World
War, there were only four principal repellents: oil of citronella, dimethyl phthalate,
Indalone, and Rutgers 612. At the outbreak of the Second World War, the latter
three components were combined into a formulation for use by the military. Other
military repellent formulae for use on clothing were developed during the war, but
they all failed to provide desired protection of military personnel deployed around
the world. As a result, by 1956, the United States government had screened over
20,000 potential insect repellent compounds. In 1953, the insect repellent

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properties of diethyltoluamide (DEET), the most common active ingredient in
insect repellents, were discovered and the first DEET product was introduced in
1956. DEET is still the most widely used mosquito repellent. It has generally
been regarded as safe, but toxic effects have been recorded (Peterson & Coats,
2001).
Mosquito coil as a method of repelling mosquitoes was invented in the last
decade of the 19th century by a Japanese man by the name of Eiichiro Ueyama.
At that time in Japan, pyrethrum powder was mixed with sawdust and burned to
repel mosquitoes. Ueyama initially created incense sticks mixed from starch
powder, dried mandarin orange skin powder, and pyrethrum powder, burning in
around 40 minutes. In 1895, his wife Yuki proposed making the sticks thicker and
longer, and curling them in spirals, in order to make them last longer. In 1902,
after a series of trials and errors, he achieved an incense burning effect in spiral
shape. The method included cutting thick incense bars to a set length and
manually winding them into a spiral. This method was used until 1957, when
mass production was made possible through machine punching. After the
Second World War, his company, Dainihon Jochugiku Co. Ltd, established joint-
venture firms in various countries, including China and Thailand, to produce
mosquito repelling products based on local conditions (Mosquito coils, 2018).

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1.2 Facts about Calamansi Peel
The calamansi is a citrus fruit that is native and available year-round to the
Philippines. It is grown principally for its fruit juice, since it is widely known as
good source of vitamin C. However, the peels are thrown after the extraction of
the juice. The calamansi juice contains an essential compound named citral
which has a pheromone, encouraging the mosquitoes to repel (Ramirez, 2014).
Calamansi extract then is also used as an effective insecticide, mainly to
roaches. It has considerable amount of essential oils stored in the rind. But, due
to its thin rind, the essential oil yield is quite low (Calamondin, 2018). Other way,
the calamansi can also be used as a cleaner. It is sometimes used as stain
remover and bleach.
1.3 Facts about Candle Wax
The word “wax” usually refers to a variety of organic substances that are
solid at ambient temperature, but become free-flowing liquids at slightly higher
temperatures. With the fairly consistent and measurable burning of a candle wax,
a common use of candle was to tell the time. The candle designed for this
purpose might have time measurements, usually in hours, marked along the wax.
Historians also believe that the original candle may have been invented by
primitive men who dipped dried branches in animal fat, thus producing a slow-
burning and reliable source of light. No candle wax has ever been proven to be
toxic or harmful to human health. Today, substances are often mixed together to
create stronger candle with higher melting point (Candles, n.d.).

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1.4 Facts about Starch
Starch is one of the most promising biopolymers because it is easily
available, biodegradable, and has low cost. The word “starch” is from a Germanic
root with the meanings “strong, stiff, strengthen, stiffen”. Starch is an integral part
of adhesive formulations that is used in wide range of industrial applications
(Industrial Starch Market, 2017). The industrial starch is derived from various
natural sources such as wheat, rice, potato, tapioca, and cassava. One of the
earliest known industrial uses of starch was to ‘size’ and stiffen textiles. Today,
starch does much more: it is added to individual yarns to increase mechanical
strength and resistance for friction wear and helps resist moisture penetration
(Industrial Applications, 2012).
1.5 Facts about Isopropyl Alcohol
Isopropyl alcohol is a flammable and easily ignited chemical compound
with dozens of practical uses. It is one of the cheapest alcohols and has replaced
ethanol for many uses because of its similar solvent properties. Numerous
household uses of isopropyl alcohol include antibacterial first aid cleanser and
disinfectant applications, as well as stain removal. Manufacturing and industrial
sectors use isopropyl alcohol for industrial solvents and fuel additives (What Are
The Uses of Isopropyl Alcohol?, n.d.).
1.6 Facts about Citronella Oil
Citronella oil is a type of oil that can be obtained from the leaves and
stems of different species of the lemongrass plant (Thompson, 2018). It has

6
yellow to brown color and has smell mixture from grass and trees. It is also a
natural oil type that is used in many industries starting from perfumery to insect
repellent products. Citronella oil can be found in variety of mosquito repelling
products such as scented candles, lotions, and wristbands. In such products,
citronella oil is used as an ingredient in combination with other substances to
provide protection against mosquitoes and other insects when applied to the skin
or clothing. The citronella oil repels the target pests rather than killing them. It
works by masking scents that are attractive to insects (Bond et al., 2013).
Citronella oil is also known to be used to treat areas of the skin where insect has
stung. Since 1948, citronella has been registered as a gentle, plant-based insect
repellent in the United States. It has even been shown to repel dangerous aedes
aegypti mosquitoes, which are capable of spreading dengue fever and the Zika
virus (Citronella Oil: Repel Insects, Pain & Stress!, n.d.).

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1.7 Proposed Name of the Product
Figure 1.1. Proposed product name
The proponents’ proposed product name, as shown in Figure 1.1, is Ecoil.
The name Ecoil is a combination of the terms eco and coil. The product was
named after the primary ingredient used in producing citric mosquito-repellent
coil which is calamansi fruit peels. This citrus fruit peel is often considered as
waste because it is already useless to the user. ECo. collects these so-
considered wastes and turn them into new useful products that are, at the same
time, environmental- and health-friendly.

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1.8 Proposed Company Name
Figure 1.2. Proposed company name and logo
Figure 1.2 shows the proposed company name and logo. ECo.’s logo is
created to represent the identity of the company which aims to produce products
through the use of what people consider as wastes.
ECo. stands for Environmental-friendly Company. It is abbreviated as
ECo. to highlight the term “Ecology” which defines the company’s desire to
innovate products through strategical movement that seeks to save and protect
the environment. The logo is composed of two colors: the color brown that
emphasizes the first letter, which is “E”, signifies the color of the earth; the green
color that emphasizes the last two letters of the logo—“Co.”—that signifies the
color of the environment. Added features of the logo include a display of the
earth inside a recycling sign which draws the letter “C” of the logo. These
features are placed in the middle of the logo to manifestly explain that the
company’s center of success involves a partnership with the earth.

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1.9 Proposed Location of the Company
Figure 1.3. Proposed company location
The proposed company location is located at 0585, Purok 4, San Agustin,
Betis, Guagua, Pampanga. The establishment where ECo. is proposed to
operate has a total area of 85 square meters (5 meters x 17 meters). This area is
enough for ECo. to operate and produce its product—Ecoil. ECo. is safe to
operate even in residential area because the materials it uses to produce its
product are chemical-free and are safe to the residences around it. The aerial
view of the proposed company location is shown in Figure 1.3. The yellow tag
indicates the exact location of the proposed company.

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CHAPTER 2
Organization and Management Study
An organization is composed of people and groups of people that play
their particular vital roles to achieve a common objective. In order for an
organization to be successful, executing strategies and proper dealing with the
people and other resources that make up an organization should be established
through management. Management is the process of dealing, controlling, and
directing people and other resources that leads the operations of the organization
to flow systematically (What is Management?, n.d.).
2.1 Vision, Mission, and Objectives
2.1.1 Vision. The vision of ECo. is to be one of the best manufacturing
companies in the Philippines by producing quality products and becoming an
environmentally friendly company.
2.1.2 Mission. ECo.’s mission is to use what people consider wastes to
produce quality products in which consumers will highly benefit from.
2.1.3 Objectives
 To help reduce the spreading of mosquito-borne diseases.
 To be part of the solution in reducing solid waste in the Philippines,
especially in Pampanga.
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 To contribute to the growth of the economy by providing
employment opportunities to Filipinos, especially Kapampangans.
2.2 Proposed Form of Business
ECo. is a partnership form of business organization wherein six people
share ownership and responsibility including management and income and
losses of the company (Partnership, n.d.). ECo. chose this form of business
organization because it believes that it will be easier for the company to be
managed by multiple owners who can share different ideas, concepts, and ways
on making the company more successful. One’s weakness may be the strength
of his partner and vice versa. Generating more resources and reaching
customers are easier, too, in partnership (12 Great Reasons for Business
Partnership, 2014). After all, many hands make the work lighter.
There are two kinds of partnership: general partnership and limited
partnership. ECo. chose to be a general partnership business organization
wherein all partners share the profits and risks of the business. They also have
unlimited liability for the debts of the company (Choosing a Business Structure:
Partnerships, n.d.). The company does not have to pay income tax separately, as
well. The owners file the profits or losses of the business in their own income tax
returns (Jux Law Firm, n.d.).
2.3 Advantages of Partnership
The advantages of partnership form of business organization include:
more pool of knowledge, skills, and abilities; more resources when starting the
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business because of more than one owner; and flexibility in terms of
management (12 Great Reasons for Business Partnership, 2014).
2.4 Type of Organizational Structure
The type of organizational structure that ECo. has is functional structure.
Inside ECo. are several tasks including managing, supervising, directing,
financing, and allocating other responsibilities (What are the 4 Types of
Organizational Structures?, n.d.). Each task inside ECo. is assigned to a specific
employee which also describes his position in the company.
2.4.1 Organizational Chart
General
Manager
Production QA and QC Administrative

Finance Head
Head Analyst Head
Production General
Cashier
Crew Services
Figure 2.1 Organizational Chart
Figure 2.1 shows the organizational chart of ECo.

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2.5 Capitalization
ECo. is a partnership form of business organization with six partners. The
list of the partners and their contributions are shown in Table 2.1. Each partner
agreed to contribute Php 1,000,000.00 as an initial capital investment for the
company. Therefore, ECo. starts up with a total amount of Php 6,000,000.00.
Partners’ Capital Contribution
NAME CONTRIBUTION (Php)
Dantes, Eric A. 1,000,000

Guevarra, Arldhail S. 1,000,000
Guevarra, Jayson Noel E. 1,000,000
Laxamana, Hezel Grace C. 1,000,000
Limpin, Zairrah K. 1,000,000
Torres, Jerome Christian A. 1,000,000
Table 2.1. Capital contribution
Aside from the capital money, filing of business registration to Department
of Trade and Industry (DTI) or Securities and Exchange Commission (SEC),
Bureau of Fire Protection (BFP), and Department of Health (DOH) must be first
accomplished. After registering from the mentioned government agencies,
permits from the local government where the business is located must also be
secured. These include barangay clearance from the barangay hall, Mayor’s
permit (a.k.a. business permit) from the municipal or city hall, and Tax
Registration Number (TIN) from Bureau of Internal Revenue (BIR). When all
these required and necessary licenses and permits are gathered, the business
can already start its operation (Yaptinchay, n.d.).

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2.6 Job Description and Specifications
A job description is a broad and written statement of a specific job in the
organization, based on the findings of the job analysis. Job description generally
includes duties, purposes, responsibilities, scope, and working conditions of a job
along with the title of the job and the designation of the employee to whom he
shall report. Job description usually forms as the basis of job specification. On
the other hand, a job specification is a statement of employee characteristics and
qualifications that are required to perform a job. Job specification covers aspects
like education, experience, work skill requirements, personal abilities, and mental
and physical requirements which can help accomplish the goals related to the
job. It also helps in the recruitment and selection process, evaluating the
performance of employees in their appraisal and promotion. Collectively, job
description and job specification help in giving an overview of the job in terms of
its title, position, roles, responsibilities, education, and experience. (Job
Descriptions and Job Specifications, n.d.)
The following are ECo.’s required positions, which are based on the
organizational chart, and their job descriptions and job specifications:

15
2.6.1 General Manager
Job Description
 Directs, manages, and optimizes the overall operations of a plant or
other production facility.
 Sets policies and makes decisions guiding productivity, quality, and
cost efficiency of plant operations.
 Establishes systems to collect metrics, analyzes productivity, and
sets performance targets that will meet revenue and cost goals.
 Leads the development and deployment of manufacturing practices
focused on quality and continuous improvement (Dosol et al.,
2016).
Job Specifications
 Male or female.
 He/she must be 25 years old or older.
 He/she must be a graduate of business-related course.
 He/she must have 5 years of experience or more in personnel
management including hiring, supervision, evaluation, and
administration.
 He/she must be excellent and has proven interpersonal, verbal, and
written communication skills (Dosol et al., 2016).

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2.6.2 Production Head
Job Description
 Improves the operational systems, processes and policies in
support of organization’s mission.
 Oversees overall manufacturing process to ensure smooth and
optimized production.
 Examines financial information to use them to improve the
company profitability.
 Presents and communicates effectively to product, business, and
executive stakeholders.
 Responsible for quality assurance and monitors production’s key
performance indicators (Dosol et al., 2016).
Job Specifications
 Male or female.
 He/she must be a graduate of Industrial Engineering.
 He/she must be familiar with production lines.
 He/she must have good negotiation skills.
 He/she must be good in time management.
 He/she must have strong communication skills (Dosol et al., 2016).

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2.6.3 Finance Head
Job Description
 Develops strategies for long-term financial goals of the organization
and ways to improve profitability.
 Responsible for investment activities and financial health of the
organization.
 Monitors everyday financial operations including payroll, invoicing
and other related transactions.
 Monitors market trends, researches consumer markets and
competitors’ activities to identify opportunities and key issues.
 Prepares financial reports and forecasts.
 Determines and orders materials needed to cover the production
demand (Dosol et al., 2016).
Job Specifications
 Male or female.
 He/she must have an accountancy degree, preferably Certified
Public Accountant.
 He/she must have strong analytical and project management skills.
 He/she must have knowledge of finance systems and procedures in
a program.
 He/she must have experience of reporting and monitoring to tight
deadlines (Dosol et al., 2016).

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2.6.4 Administrative Head
Job Description
 Plans and coordinates administrative procedures and systems and
devises ways to streamline processes.
 Recruits and trains personnel and allocates responsibilities and
office space.
 Assesses staff performance and provides coaching and guidance
to ensure maximum efficiency.
 Manages schedules and deadlines (Dosol et al., 2016).
Job Specifications
 Male or female.
 He/she must be proficient in Microsoft Office.
 He/she must have excellent organizational and multitasking
abilities.
 He/she must have an analytical mind with problem-solving skills.
 He/she must have a degree in bachelor of science major in
business administration or relative field (Dosol et al., 2016).

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2.6.5 Quality Assurance and Quality Control Analyst
Job Description
 Plan, conduct, and monitor testing and inspection of materials and
products to ensure finished product quality.
 Ensures that the processes and materials comply with the set
standards.
 Acts as a catalyst for change and improvement in performance and
quality.
 Responsible for recording, analyzing, and distributing statistical
information.
 Monitors the performance of the overall production.
Job Specifications
 Male or female.
 He/she must have a degree in Bachelor of Science, preferably
Industrial Engineering.
 He/she must have excellent technical and problem-solving skills.
 He/she must have good numerical skills and of statistics
knowledge.
 He/she must have a meticulous approach to work.

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2.6.6 Cashier
Job Description
 Greets customers with enthusiasm.
 Perform all cash register functions accurately and efficiently, such
as sales, returns, and exchanges.
 Responsible for selling products to the customers.
 Knows the information needed by the customers regarding the
product for sale.
 Prepares daily reports of sales.
Job Specifications
 Male or female.
 He/she is at least high school graduate.
 He/she must be between 21-30 years old.
 He/she must be familiar with the cash register.
 He/she must have a good computation skill and have the ability to
multi-task.
 He/she must be customer-oriented.
 He/she must have a good moral character and is enthusiastic
(Dosol et al., 2016).

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2.6.7 Production Crew
Job Description
 Measures, grades, and feeds batches of raw materials into
production machinery.
 Cleans and maintains work areas and machinery.
 Responsible for machine repair and maintenance (Dosol et al.,
2016).
Job Specifications
 Male or female.
 He/she must be at least 21 years old.
 He/she must have good practical skills.
 He/she must have the ability to concentrate while doing repetitive
tasks.
 He/she must have the ability to work quickly and methodically.
 He/she must be a good follower of instructions.
 He/she must be willing to be trained.
 He/she must be at least a high school graduate.
 He/she must have knowledge of general maintenance processes
and methods. (Dosol et al., 2016).

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2.6.8 General Service Crew
Job Description
 Responsible in cleaning the establishment.
 Responsible for collecting and disposing trash.
 Responsible for reporting to management about the things that
need to be repaired (Dosol et al., 2016).
Job Specifications
 Male or female.
 He/she must be at least 21 years old.
 He/she must be responsible and trustworthy.
 He/she must be flexible in doing assigned tasks.
 He/she must be at least a high school graduate (Dosol et al., 2016).

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2.7 Manpower Requirements
One of the most important resources that a company must have is
manpower or human resource. Without manpower, a company will be just like a
body without blood. It will not function itself. There must be people behind every
operation of the company. ECo.‘s number of required manpower are shown on
Table 2.2.
JOB TITLE NUMBER OF WORKER/S
General Manager 1
Finance Head 1
Cashier 1
Administrative Head 1
QA and QC Analyst 1
Production Crew 4
Production Head 1
General Service Crew 1
TOTAL 11
Table 2.2. Required number of manpower

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2.8 Compensation Scheme and Benefits
Companies hire individual to achieve their organizational goals and people
join companies to earn money and build their career. Some of the factors why
individual join companies are the compensation and benefits, salaries, perks, and
incentives. Recognizing and rewarding the performance of employees create an
attractive environment for pulling and retaining top talent. There are number of
incentive plans that have been introduced and implemented today. These
incentive plans are to motivate employees to increase their level of efficiency and
productivity.
2.8.1 Financial benefits. One category of the best motivations a
company may give to its employees is financial benefits. These can increase
their productivity and make their work more effective. These financial benefits
include leaves with pay, retirement pays, and bonuses.
2.8.1.A 13th month pay. Thirteenth month pay, also known as thirteenth
salary, is usually given in December. It is equivalent to the total basic monthly
salary for the whole year divided by twelve months.
2.8.1.B Overtime pay. If an employee continues his work beyond the
maximum working hours per day—which is eight hours—the succeeding time he
will spend will be considered as overtime, and it should be compensated as
overtime pay. Overtime pay in a normal day is usually calculated by multiplying
an employee’s hourly rate by 125% for non-night shift and 137.5% for night-shift.
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2.8.1.C Holiday pay. ECo. shall join in observing both regular holidays
and special holidays. On Table 2.3 are the holidays in the Philippines with their
corresponding dates. ECo.’s employees shall be remunerated for those holidays
accordingly. An employee shall be paid 200% of his basic daily rate if he reports
to work on a regular holiday, and 130% of his basic daily rate if he reports to
work on a special holiday.
Holidays in the Philippines
REGULAR HOLIDAYS DATE

New Year’s Day January 1
Araw ng Kagitingan April 9
Maundy Thursday Moveable Date
Good Friday Moveable Date
Labor Day May 1
Independence Day June 12
National Heroes Day August 26
Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30
SPECIAL HOLIDAYS DATE
Chinese New Year Moveable Date
Black Saturday Moveable Date
Ninoy Aquino Day August 21
All Saints Day November 1
Additional Non-working Holiday December 26
Christmas Eve December 24
New Year’s Eve December 31
LOCAL HOLIDAYS DATE
Guagua Day May 30
Pampanga Day December 11
Table 2.3. Regular, special, and local holidays (Musico, 2018).

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2.9 Hiring Policies
ECo. believes that hiring qualified individuals to fill positions contributes to
the overall success of the company. Each employee, while employed, is hired to
make significant contributions to the company to assure that the company meets
its goals.
The company shall follow a hiring process following the proper selection of
qualified employees. Before getting hired, the candidate shall pass the complete
requirements and follow the required series of procedures after. Seminars and
trainings shall be given to the newly hired employees to enhance their skills,
knowledge, and abilities that will prepare them for the job and tasks.
In hiring the most qualified candidates for the positions, the following hiring
procedure shall be followed.
2.10 Recruitment and Hiring Procedures
The proponents developed a process that shall be followed in recruiting
and hiring personnel of the company. It is a step-by-step process for evaluating
the potentials of an applicant. ECo. believes that hiring qualified individuals to fill
positions contributes to the overall success of the company. In hiring the most
qualified candidates for positions, the following process should be followed.

27
Reviewing and Finalizing Job Orders
Searching the Right Résumé
Scheduling of Interviews
Follow-up Interview
Physical and Medical Examination
Character Investigation
Final Interview and Signing of Contract
Job Training and Orientation
Job Operation
Figure 2.2. Recruitment and hiring process

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Figure 2.2 shows the step-by-step process to be followed in hiring an
applicant. A detailed discussion of the process is as follows.
1. Reviewing and Finalizing Job Orders – first, the manager shall finalize the
job orders and advertise the vacant positions through social media,
newspaper, and posters.
2. Searching the Right Résumé – the applicants’ résumés shall be collected
and reviewed by the manager. In this step, each application that is
received is read to determine whether the applicant possesses the skills,
education, experience or other qualifications needed for the job.
3. Scheduling of Interviews – the selected applicants shall be scheduled for a
preliminary interview and evaluation that will qualify them for the next step.
4. Follow-up Interview – the chosen applicants shall be notified by the
manager and schedule them for a follow-up interview.
5. Physical and Medical Examination – after passing the two interviews, the
applicants shall be required to undergo physical and medical examination
such as diagnostics test to prove their physical ability to perform the tasks
associated with the job they have applied for.
6. Character Investigation – in this step, the manager shall call two or three
of the applicant’s character reference to verify the applicant’s employment
details.
7. Final Interview and Signing of Contract – the final interview deals about
the remuneration, benefits, and other matters relating to the position that
shall be followed by the signing of contract.

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8. Job Training and Orientation – the newly hired employees shall undergo
trainings and/or seminars before starting with their job. The company has
policy that it shall conduct trainings and/or seminars for the employees to
enhance their skills and abilities that will prepare them for the job.
9. Job Operation – the employee shall now start with their job.
2.10.1 Recruitment and hiring policy. ECo. shall hire applicants based
on their qualifications. The recruitment and hiring process shall be strictly
complied with equal employment opportunity and affirmative action regulations.
Also, the job specifications on every position shall be met accordingly.
2.10.2 Recruitment program. To decrease the unemployment rate and
increase the morale of Kapampangans, the proponents would like to prioritize the
residents of Pampanga in hiring employees. This shall also contribute in the
development of the local government of Pampanga.
The requirements that shall be submitted by the applicants are as follows.
 Curriculum Vitae
 Two pieces of 2x2 picture with white background
 Transcript of Record (If available)
 College Diploma (If applicable)
 Medical Certificates
 Certificate of Good Moral Character (if applicable)
 Certificate of Employment (if applicable)
 SSS number, PhilHealth number, TIN number

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 Barangay clearance
 NBI clearance
2.10.2.A Social Security System benefits. Covered employees shall be
entitled to a package of benefits under the Social Security System Programs in
the event of death, disability, sickness, maternity, and old age. Basically, the
Social Security System provides for a replacement of income lost on account of
the aforementioned contingencies. The benefits under the Social Security
System Program are: sickness, maternity, disability, retirement, death, and
funeral.
2.10.2.B Pag-IBIG fund. Each employee shall contribute to the Pag-IBIG
Fund. The amount contribution shall base on the salary range of the employee.
2.10.2.C PhilHealth. PhilHealth serves as a medical insurance for the
employees. An employee shall be required to contribute based on his salary
range. Likewise, the employer shall also contribute a share on the PhilHealth
insurance of its employee.
2.10.2.D Non-financial benefits. Employees would want to work under a
pleasant condition with good working management. Besides high pay and
generous benefits, employees also want professional growth, meaningful
contributions, recognition, and appreciation. With this, the company shall provide
non-financial benefits for fair and just treatment that would give its employees
greater workplace gratification.

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2.10.2.E Sick leave. Sick leave is the time off from work that the
employee can use to stay home to address their health and safety needs without
losing pay. Based on the typical sick leave policy, the company shall provide five
or six days of paid sick leave.
2.10.2.F Service incentive leave. Employees who have rendered at least
one year service shall be entitled to an annual leave of five days with pay. The
service incentive shall be converted into cash if not actually used or consumed at
the end of the year. Employees shall observe the following guidelines in the
availability or use of such leaves.
1. Accomplish the vacation leave forms.
2. Submit the said forms to the manager seven days before the intended
leave.
ECo. reserves the right to schedule, approve, or deny an employee’s
application for a vacation leave.
2.11 Management Policies System and Strategies
A policy-based management is an administrative approach that is used to
simplify the management of a given endeavor by establishing policies to deal
with situations that are likely to occur. Policies are operating rules that can be
referred to as a way to maintain order, security, or consistency which are
established to support and encourage work towards stated goals. Policies are
instrument for strategy implementation (Barnat, n.d.). On the other hand, a
strategy is a special plan, chosen to achieve the organizational objectives, gain

32
customer’s trust, attain competitive advantage, and to acquire a market position.
It is a combination of well thought intent and actions which lead to the
organization towards its desired position or destination (Bagal, 2016).
ECo. believes that when business policies and strategies are created and
used, there is a standardization of how the company delivers products or
services to the consumers. Listed below are the company’s management policies
system and strategies.
2.11.1 Health, safety, and environment. ECo. shall commit to a strong
safety program that protects its employees, its property, the public, and the
environment. To comply with the applicable laws, the company shall be
dedicated to: provide a safe and healthy working environment as a prerequisite
to the operations; provide continuous improvement in minimizing environmental
impacts, preventing pollution and limiting depletion of natural resources; and the
on-going reduction of risks at the workplace. The company shall provide training
of personnel in accident prevention, accident response, emergency
preparedness, use of protective clothing, and proper use of equipment and/or
machines.
2.11.2 Entrance of the property. The company shall ensure that only
those persons having authorized business are allowed on the workplace. Those
who are entering the site shall be inspected.
2.11.3 Fire protection. The company shall take all the reasonable
precautions to prevent fires. It shall comply with all the applicable laws,
33
regulations, and good practices pertaining to fire prevention. The company shall
commit to minimizing the threat of fire to employees, visitors, and property.
Hence, it shall dispose paper bags, trash, and other combustible materials only in
safe containers. The company shall also provide its own fire protection. Industrial
fire protection equipment covers the fire protection products needed to protect
against high risk; fire extinguishers in case of fire, company personnel in the area
shall immediately take all practical measures to protect the safety of all
personnel. This fire protection plan serves to reduce the risk of fires and its
further damage.
2.12 House Rule Policies
ECo. shall commit to creating a hazard-free workplace. With this, the
company shall provide its production workers the proper personal protective
clothing and equipment that shall be used at all times whenever possible. Also,
all personal protective clothing and equipment shall be maintained by the
company in accordance with the manufacturer’s recommendations.
2.12.1 Housekeeping. The company shall maintain good housekeeping.
An effective housekeeping program is an important element in workplace safety
and health management system. The proponents would like to propose the
implementation of the Five S’s of Good Housekeeping (5S) program at all times.
 Sort – eliminate anything that is unnecessary in the workplace.
 Set in Order – keep the important materials nearby. Have all the materials
necessary in the optimal place for fulfilling their function in the workplace
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and according to the principle: “a place for everything and everything in its
place”.
 Shine – clean and inspect the working area, equipment, and tools on a
regular basis. In a clean environment, any leak or abnormality can be
easily detected.
 Standardize – create a standardized and consistent 5S workflow.
Establish procedures and schedules to ensure the repetition of the first
three S’s practices.
 Sustain – ensure that the 5S approach is a long-term and company-wide
goal that is being followed. Perform regular audits, analyze the results,
hold team meetings, train workers about the importance of 5S, and
implement improvements whenever possible.
2.13 Policies in Production
ECo. shall establish good manufacturing policies to meet quality standards
and to ensure that it handle and manufacture products safely and consistently.
The following are the policies to be followed by the employees in the production.
 All employees must log in the daily time record.
 All employees must wear the proper uniform while working.
 All employees must wear apron, facemask, gloves, hair cap, and other
personal protective clothing in the production to avoid contamination.
 All employees must practice good personal hygiene.
 Cleanliness must be observed at all times.

35
 Smoking is strictly prohibited at all times.
Violation of any of the policies mentioned above shall be subject to warning to
the employee.
2.14 Termination of Employment
Termination of employment is when an employee leaves a job and ends
his duration with his employer (Termination of employment, 2018). Before
terminating one’s employment, the employer shall observe procedural due
process. According to Bureau of Labor Relations, there are two components of
procedural due process: “(A) in a termination for just cause, due process involves
the two-notice rule—A notice of intent to dismiss specifying the ground for
termination, and giving said employee reasonable opportunity within which to
explain his or her side; A hearing or conference where the employee is given
opportunity to respond to the charge, present evidence or rebut the evidence
presented against him or her; A notice of dismissal indicating that upon due
consideration of all the circumstances, grounds have been established to justify
termination—and (B) in a termination for an authorized cause, due process
means a written notice of dismissal to the employee specifying the grounds at
least 30 days before the date of termination. A copy of the notice shall also be
furnished the Regional Office of the Department of Labor and Employment
(DOLE) where the employer is located” (Termination of Employment, n.d.).

36
2.14.1 Termination by General Manager
 Discriminatory acts towards employees or hiring candidates
 Verbal, physical, or sexual abuse
 Falsifying time records or other key documents; wilful or negligent
violation of safety or security rules
 Violation of company policies
 Unauthorized disclosure of the company’s confidential information
 Refusal to perform assigned work
 Destroying or damaging company property
 Misappropriation
 Drug abuse or gambling on company premises
2.14.2 Employee resignation. An employee may resign at any time,
provided that he will give reasonable notice. They employment agreement shall
be checked to confirm notice periods and final pay shall be calculated. If the
employee gives the required notice, the employer must pay the employee to the
end of the notice period, unless the employee is justifiably dismissed during that
period. The employment relationship continues until that date.
The employee may be required to work for the full notice period, or may
be asked to stop coming to work before this date. In either case, the employee
shall be paid to the end of the notice period. If pay is stopped before the end of
the notice period, the employee may be able to claim for wages owed.
37
If an employee leaves work without giving notice, the employer is not
required to pay for time beyond the employee’s last actual working day. The
employer must not deduct pay in lieu of notice from any amount owed to the
employee. Unless the employee agrees in writing or the employment agreement
specifically allows it.
The employer must pay all holiday pay owing to the employee in their final
pay.
2.14.3 Retirement from the service. Any employee may retire upon
reaching the retirement age established in the agreement or employment
contract. In the absence of a retirement plan or agreement, an employee upon
reaching the age of sixty years or more, but not beyond sixty-five years, who has
served at least five years in the said company, may retire and shall be entitled to
retirement pay. The retirement pay is equivalent to at least one half month salary
for every year of service, a fraction of at least six months being considered as
one whole year (Republic Act No. 7641, n.d.).

38
Conclusion
Organization is the process of organizing, planning, leading, and
controlling resources within an entity with the overall aim of achieving its
objectives. Management, on the other hand, is one of the most important
aspects in establishing a business. Organization and management is twin terms
that exist side by side with each other, each one needs and supports the other.
Organizations will be inert and useless if there is no management that will steer
it; the same way as, management will be hollow and meaningless if there is no
organization to manage. The overall implementation plan is discussed in the
organization and management study. This aspect includes the company’s vision,
mission, and objectives; the proposed form of business and its advantages; the
type of organizational structure and the organizational chart; capitalization; a
study of the officers, key personnel, and manpower requirements; the
employee’s compensation scheme and benefits; policies and procedures (i.e.
hiring policies, management’s policies system and strategies, house rules
policies, policies in production); and the termination of employment. The
objective of the second chapter of this study is to determine the effectiveness of
the organization setup and the qualifications of the individuals who will make up
the organization.
As stated in the second chapter, ECo. is a business partnership of six
people that aims to be a part of solution in reducing solid waste in the
Philippines, as it contribute to the development of the local government of
Pampanga. The company believes that the employees are its most valuable
39
asset and key to success. Hence, it assures that each employee hired is qualified
to do his job and task in accordance to his job description. The company is also
providing its employees compensations and benefits, both financial and non-
financial. ECo. is also taking into consideration the safety and health of the
employees, the public, and the environment. With this, the company implements
management policies system and strategies (i.e. entrance of the property and fire
protection) and other policies and procedures (i.e. house rule policies,
housekeeping, and policies in production). In this chapter, the proponents also
proposed the implementation of the Five S’s of Good Housekeeping (5S)—an IE
tool and system for organizing spaces so work can be performed efficiently,
effectively, and safely. The last organization and management topic tackled in
the said chapter is the termination of employment which includes the grounds of
an employer to dismiss an employee, and the retirement of an employee from the
service.
Ultimately, seeking perfection is the business of excellent organizations.
But clearly, there are no perfect organizations; but then again, there are no great
organizations that are not in the business of trying to be perfect.

40
CHAPTER 3
Market Study
Accurate and thorough information is the foundation of all successful
business ventures because it provides a wealth of information about prospective
and existing customers, the competition, and the industry in general. It allows
business owners to determine the feasibility of a business before committing
substantial resources to the venture (Chopra et al., n.d.).
Market study is simply an information gathering exercise to determine the
viability of something. For example, if you have a business plan in mind, it could
be the viability of the business that is, determining the size of the market and
asking: "Is there enough customers for me?" rather than making decisions based
on just own “gut feeling”. Market study leads to wiser and better business
strategies (The Importance of Market Research, n.d.). Moreover, market
research allows one to identify threats and opportunities in the market place and
provides the information on which he can make informed decisions. The higher
the accuracy of the information, the better decision making will be. Therefore, by
engaging the right people and data, a business can use this study to position
itself in the market and predict where the market will go in the future.
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3.1 Target Market
The target market is the central focus of a marketing plan that determines
essential factors for a product, such as distribution, price, and promotional
efforts. Identifying the target market is the most important primary step in the
development of marketing plan.
ECo.’s target market is the household population of Guagua, Pampanga.
Guagua is one of the commercial centers in the province of Pampanga. The town
is a property of the second district of the province and has a total number of 31
barangays (Dosol et al., 2016). As of 2017, the area has a total number of 24,476
household populations. For the past years, Guagua has been considered as a
flood-prone town due to its low elevation, aggravated by the eruption of Mt.
Pinatubo and lahar flow (Buenaventura, 2011). As a result, mosquito population
can explode, and the diseases they carry can be a danger to the residents of
Guagua. Studies show, that stagnant water from heavy rainfall provides an
opportunity for mosquito breeding. This explains why the proponents have
targeted the town of Guagua to be their market.
The town of Guagua is politically subdivided into 31 barangays and four
sectors as shown in Table 3.1.

42
Barangays of Guagua, Pampanga
POBLACION LOCION
PANGULO AREA BETIS AREA
AREA AREA
Bancal San Vicente Ebus San Pablo San Agustin
San Juan
Plaza Burgos Lambac San Juan 1st
Bautista
San Juan
San Nicolas 1st Magsaysay San Jose
Nepomuceno
San Pedro Maquiapo San Matias San Miguel
San Rafael Natividad San Isidro San Nicolas 2nd
San Roque Pulungmasle San Antonio Sta. Ines
Sta. Filomena Rizal Sta. Ursula
Sto. Cristo Ascomo
Sto. Nino Jose Abad Santos
Table 3.1. Barangays of Guagua, Pampanga

43
Total Number of Household Population of Guagua, Pampanga
YEAR TOTAL NUMBER OF HOUSEHOLDS
2010 25,265
2011 25,544
2012 25,825
2013 26,110
2014 26,398
2015 26,689
2016 26,980
2017 27,274
2018 27,571
Table 3.2. Total number of household population of Guagua, Pampanga
Table 3.2 shows the total number of household population in Guagua,
Pampanga from the year 2010 to 2018 according to the Office of the Local Civil
Registry of the Municipal Hall of Guagua, Pampanga (see Appendix B).

44
3.2 Market Survey Analysis
As part of information gathering, the proponents have conducted survey
using market survey questionnaire (see Appendix A) in different barangays of
Guagua, Pampanga. The percentages have been rounded off to two decimal
places.
1. Do you use mosquito coils as insect repellent at home?
Yes
9.43% No
90.57%
Figure 3.1. The result of survey question number one
Figure 3.1 shows that out of 106 respondents surveyed, there are 96 or
90.57% of the respondents are using mosquito coil as repellent. While 10
respondents or 9.43% answered that they are not using the product. Therefore,
the survey explains that the proponents have targeted the exact market of their
proposed product.
45
2. If yes, what brand of mosquito coil do you use?
Baygon
2.08%
Lion-Tiger
Others
34.38%
63.54%
Figure 3.2. The result of survey question number two
Figure 3.2 shows the two famous brands of mosquito coil and other
brands that the customers commonly use. Survey says that 61 or 63.54% out of
96 respondents use the brand Baygon. 33 respondents or 34.38% use the brand
Lion-Tiger while 2 or 2.08% of the respondents use other brand—Strike.
Therefore, the survey shows that the major competitor of Ecoil is Baygon.
46
3. How often do you buy mosquito coils?
Daily
2.08% Weekly
Monthly
16.67%
Others
52.08%
29.17%
Figure 3.3. The result of survey question number three
Figure 3.3 shows the percentage of the period of time the customers use
mosquito coil. Survey says that out of 96 respondents, there are 50 or 52.08%
who use coil daily; 28 respondents or 29.17% use weekly; 16 respondents or
16.67% answered monthly while 2 respondents or 2.08% said they use coil once
a year or when there is only power interruption. Therefore, the survey explains
that most of the respondents use coil as mosquito repellent daily.

47
4. How much do you usually spend for a piece of mosquito coil?
Php 1 to 5
9.38%
13.54% Php 6 to 10
Php 11 to 15
9.38%
Php 16 above
67.71%
Figure 3.4. The result of survey question number four
Figure 3.4 shows the range of prices that the customers usually spend for
a mosquito coil. Survey says that 65 or 67.71% out of 96 respondents spend 1 to
5 pesos; 13 respondents or 13.54% spend 6 to 10 pesos; 9 respondents or
9.38% spend 11 to 15 pesos; while 9 respondents or 9.38% said they spend 16
pesos above for a mosquito coil. Therefore, the survey explains that most of the
respondents spend a price ranging from 1 to 5 pesos for a piece of mosquito coil.
48
5. Are you willing to use a mosquito repellent coil made from citrus fruit peels like
lemon, orange, and calamansi?
3.77%
Yes
No
96.23%
Figure 3.5. The result of survey question number five
Figure 3.5 shows that out of 106 respondents surveyed, there are 104
respondents or 96.23% answered that they are willing to use the citric mosquito-
repellent coil. While 4 respondents or 3.77% answered that they are not willing to
use the product. Therefore, the survey explains that 96.23% of the target market
of the proponents is willing to use their proposed product.

49
3.3 Demand and Supply Analysis
3.3.1 Demand Analysis
Barangays 2013 2014 2015 2016 2017

Bancal 1,484 1,501 1,517 1,534 1,550
JAS (Siran) 468 473 478 483 488
Lambac 751 759 768 776 784
Magsaysay 738 746 754 763 771
Maquiapo 751 759 768 776 785
Natividad 1,368 1,383 1,398 1,413 1,429
Plaza Burgos (Pob.) 60 60 61 62 62
Pulungmasle 2,081 2,104 2,127 2,150 2,174
Rizal 877 886 896 906 916
San Agustin 1,288 1,302 1,316 1,331 1,345
San Antonio 986 997 1,008 1,019 1,030
San Isidro 299 303 306 309 313
San Jose 462 467 472 477 482
San Juan Bautista 564 570 577 583 589
San Juan Nepomuceno 1,347 1,362 1,377 1,392 1,407
San Matias 778 787 795 804 813
San Miguel (Betis) 1,047 1,059 1,070 1,082 1,094
San Nicolas 1st 363 367 371 375 379
San Nicolas 2nd 581 587 593 600 606
San Pablo 659 667 674 681 689
San Pedro 1,182 1,195 1,208 1,221 1,234
San Rafael (Duck Island) 877 886 896 906 916
San Roque 723 731 739 747 755
San Vicente (Ebus) 1,328 1,342 1,357 1,372 1,387
San Juan 558 564 570 576 583
Sta. Filomena (Pob.) 420 424 429 434 438
Sta. Ines 764 773 781 790 798
Sta. Ursula 1,325 1,340 1,355 1,370 1,384
Sto. Cristo 802 810 819 828 837
Sto. Nino (Pob.) 467 472 477 482 488
Ascomo 714 722 730 737 746
TOTAL 26,110 26,398 26,689 26,980 27,274
Table 3.3. Household Population of Guagua, Pampanga

50
Table 3.3 shows the historical number of household in Guagua,
Pampanga. In 2013, there are 26,110 households; 26,398 from 2014; 26,689
from 2015; 26,980 from 2016; and 27,274 from 2017.
3.3.1.A Computation for monthly consumption rate.
Formula: Number of Participants x Number of Frequency = MCR
Consumption Number of Number of

MCR
Basis Participants frequency
Once a Day 50 30 1,500
Once a Week 28 4 112
Once a Month 16 1 16
Others 2 0.08 0.16
Total 96 1,628
Table 3.4. Computation for monthly consumption rate
Table 3.4 shows the computation for monthly consumption rate.
Average Consumption Rate
Formula: Total MCR / Total Participants
Average Consumption Rate = 1,628 / 96
= 17 pieces of mosquito coils

51
3.3.1.B Computation for historical demand.
Year 2013 2014 2015 2016 2017

Target no. of
26,110 26,398 26,689 26,980 27,274
people
Target market
0.96 0.96 0.96 0.96 0.96
percentage
Projected
25,066 25,342 25,621 25,900 26,183
target market
Average
17 17 17 17 17
consumption
Demand per
425,112 429,797 434,534 439,270 444,058
month
No. of months
12 12 12 12 12
in a year
Annual
5,101,350 5,157,567 5,214,404 5,271,241 5,328,698
Demand
Table 3.5. Computation for historical demand
Table 3.5 shows the computation of the historical demand. By
multiplying the target number of people to target market percentage,
projected target market is obtained. Demand per month is also obtained by
multiplying the projected target market to average consumption. While in
getting annual demand, demand per month is multiplied by the number of
months in a year.
52
3.3.1.C Methods for computing projected demand.
3.3.1.C.a Arithmetic straight line method.
Year Actual Values (x)
2013 5,101,350
2014 5,157,567
2015 5,214,404
2016 5,271,241
2017 5,328,698
Table 3.6. Historical demand in arithmetic straight line method
Table 3.6 shows the historical demand in arithmetic straight line method
from 2013 to 2017.
Formula:
Projected demand = Actual demand last year – Actual demand first

year
Number of years
Actual demand Last Year = 5,101,350
Actual demand first year = 5,328,698
Number of years = 5
Projected demand = 5,101,350 – 5,328,698
5
= 45,470
Therefore, 45,470 will be the increase for projected demand starting 2018.
53
Projected years Project demand

2018 5,374,168
2019 5,419,637
2020 5,465,107
2021 5,510,576
2022 5,556,046
TOTAL 27,325,534
Table 3.7. Projected demand of arithmetic straight line method
Table 3.7 shows the projected demand in arithmetic straight line method
from 2018-2022. Projected demand is obtained per year by adding the last year
to projected demand obtained from the historical demand. For the year 2018, the
projected demand is 5,374,168; 5,419,637 for 2019; 5,465,107 for 2020;
5,510,576 for 2021, and 5,556,046 for 2022.

54
3.3.1.C.b Statistical semi log method
Year Historical demand (y) Log y (x) (x2) x log y
2013 5,101,350 6.71 -2 4 -13.42
2014 5,157,567 6.71 -1 1 -6.71
2015 5,214,404 6.72 0 0 0.00
2016 5,271,241 6.72 1 1 6.72
2017 5,328,698 6.73 2 4 13.45
26,073,261 34 10 0.05
Table 3.8. Historical demand in statistical semi log method
The table shows for historical demand in statistical semi log. To obtain log
y, using Microsoft Excel, logarithm function is entered together with the
corresponding historical demand. For X log y, the obtained value of log y is
multiplied by x value of the corresponding year.

55
Formula in getting projected demand in statistical semi log method
Yc = Anti-log (Log Yc)
Yc = Anti-log [Log a + Log b (x)]
Where:
Log Yc = Log a + Log b (x)
Log a = ƩLog y / n
= 34 / 5
= 6.8
Log b = Ʃ x Log y / Ʃ x2
= 0.05 / 10
= 0.05
Therefore, to get projected demand,
Formula:
Yc = Anti-Log (Log Yc)
= Anti-Log [(6.8) + (0.05(3)]

56
Year Projected Demand (y) Log y (x)
2018 5,387,357 6.73 3
2019 5,446,403 6.74 4
2020 5,506,095 6.74 5
2021 5,566,443 6.75 6
2022 5,627,451 6.75 7
27,533,749
Table 3.9. Projected demand in statistical semi log method
Table 3.9 shows the projected demand in statistical semi log method. For
the year 2018, the projected demand is 5,387,357; 5,446,403 for 2019;
5,506,095 for 2020; 5,566,443 for 2021; and 5,627,451 for 2022.
57
3.3.1.C.c Parabolic projection method.
Historical
Year (x) (x2) (x4) (xy) (x2y)
Demand (y)
2013 5,101,350 -2 4 16 -10,202,700 20,405,400
2014 5,157,567 -1 1 1 -5,157,567 5,157,567
2015 5,214,404 0 0 0 0 0
2016 5,271,241 1 1 1 5,271,241 5,271,241
2017 5,328,698 2 4 16 10,657,396 21,314,792
26,073,261 0 10 34 568,370 52,149,000
Table 3.10. Historical demand in parabolic method
Table 3.10 shows the historical demand in parabolic method. In obtaining
the value for xy, historical demand from the corresponding year is multiplied by
the value of x. While for x2y, the historical demand from the corresponding year is
multiplied by the value in x2.

58
Formula in getting the projected demand using the parabolic projection method
Yc = a + bx + cx2
Where:
a = Ʃx4 (Ʃy) – Ʃx2 (Ʃx2y)
n (Ʃx4) - (Ʃx2)2
a = 34 (26,073,261) – 10 (52,149,000)
5 (34) – (10)2
a = 5,214,298
b = Ʃxy
Ʃx2
b = 568,370
10
b = 56,837
c = n (Ʃx2y) – (Ʃx2) (Ʃy)
n (Ʃx4) – (Ʃx2)2
c = 5 (52,149,000) – 10 (26,073,261)
5 (34) – (10)2
c = 177
Formula: Yc = a + bx + cx2
Yc = 5,214,298 + 56,837 (3) + 177 (9)

59
Year Projected Demand (y) (x)

2018 5,386,402 3
2019 5,444,478 4
2020 5,502,908 5
2021 5,561,693 6
2022 5,620,831 7
27,516,312
Table 3.11. Projected demand in parabolic method
Table 3.11 shows the projected demand in parabolic projection method.
For the year 2018 the projected demand is 5,386,402; 5,444,478 for 2019;
5,502,908 for 2020; 5,561,693 for 2021; 5,620,831 for 2022.

60
3.3.1.D Standard deviation (demand).
3.3.1.D.a Arithmetic straight line method.
Projected years Project demand (x2)
2018 5,374,168 2.88817E+13
2019 5,419,637 2.93725E+13
2020 5,465,107 2.98674E+13
2021 5,510,576 3.03665E+13
2022 5,556,046 3.08696E+13
TOTAL 27,325,534 1.49358E+14
Table 3.12. Arithmetic straight line method and the standard deviation
Table 3.12 shows the required data for the computation of the standard
deviation in arithmetic straight line method.
Formula:
[5 (∑𝑥 2)−(∑𝑥)2
Standard Deviation = √
𝑛(𝑛−1)
[5 (1.49358E+14)−(27,325,534)]
= √
5(5−1)
= 71,894
61
3.3.1.D.b Statistical semi log method.
Year Projected Demand (y) Log y (x) SD (x2)

2018 5,387,357 6.73 3 2.90236E+13
2019 5,446,403 6.74 4 2.96633E+13
2020 5,506,095 6.74 5 3.03171E+13
2021 5,566,443 6.75 6 3.09853E+13
2022 5,627,451 6.75 7 3.16682E+13
27,533,749 1.51657E+14
Table 3.13. Statistical semi log method and the standard deviation
deviation in statistical semi log method.
Formula:
[5 (∑𝑥 2)−(∑𝑥)2
𝑛(𝑛−1)
[5 (1.51657E+14)−(27,533,749)]
= √
5(5−1)
= 94,906.45
62
3.3.1.D.c Parabolic projection method.
Year Projected Demand (y) (x) (x2)

2018 5,386,402 3 2.90133E+13
2019 5,444,478 4 2.96423E+13
2020 5,502,908 5 3.0282E+13
2021 5,561,693 6 3.09324E+13
2022 5,620,831 7 3.15937E+13
27,516,312 1.51464E+14
Table 3.14. Parabolic projection method and the standard deviation
deviation in parabolic projection method.
Formula:
[5 (∑𝑥 2)−(∑𝑥)2
𝑛(𝑛−1)
[5 (1.51464E+14)−(27,516,312)]
= √
5(5−1)
= 92,666.51
63
3.3.1.E Computation for historical supply.
Daily Numbers of No. of

Competitors Supply Days in a months in Total
(per piece) Month a year
Baygon 2,263 30 12 814,519
Lion-Tiger 1,700 30 12 612,000
Strike 237 30 12 85,201
TOTAL 1,511,720
Table 3.15 Annual supply of competitors for the year 2013
Daily No. of
No. of Day /
Competitors Supply (per Month in Total
Month
piece) a Year
Baygon 2,287 30 12 823,495
Lion-Tiger 2,106 30 12 758,029
Strike 239 30 12 86,140
TOTAL 1,667,664
Daily No. of
No. of Day /
Competitors Supply (per Month / Total
Month
piece) Year
Baygon 2,313 30 12 832,570
Lion-Tiger 2,129 30 12 766,383
Strike 242 30 12 87,089
TOTAL 1,686,042
Daily No. of
No. of Days in
Competitors Supply (per Month in Total
a Month
piece) a Year
Baygon 2,338 30 12 841,746
Lion-Tiger 2,152 30 12 774,828
Strike 245 30 12 88,049
TOTAL 1,704,623

64
No. of
Daily Supply No. of Days
Competitors Month in Total
(per piece) in a month
a Year
Baygon 2,364 30 12 851,022
Lion-Tiger 2,176 30 12 783,367
Strike 247 30 12 89,019
TOTAL 1,723,408
Competitors 2013 2014 2015 2016 2017

Baygon 814,519 823,495 832,570 841,746 851,022
Lion-Tiger 612,000 758,029 766,383 774,828 783,367
Strike 85,201 86,140 87,089 88,049 89,019
TOTAL 1,511,720 1,667,664 1,686,042 1,704,623 1,723,408
Table 3.20 Total annual supply of competitors from the year 2013 to 2017
Table 3.20 shows the historical annual supply of ECo.’s competitors.
Historical data from the year 2013 to 2017 are obtained by recording the present
supply the target market has, then the growth rate of 1.09% is subtracted.
65
3.3.1.F Methods of computing projected supply.
3.3.1.F.a Arithmetic straight line method.
Year Historical Supply

2013 1,528,198
2014 1,667,664
2015 1,686,042
2016 1,704,623
2017 1,723,408
Table 3.21. Historical supply in arithmetic straight line method
Table 3.21 shows the historical supply in arithmetic straight line
method from 2013 to 2017.
Formula:
Projected supply = Actual supply last year – Actual supply first year
Number of years
Actual Supply Last Year = 1,528,198
Actual Supply First Year = 1,723,408
Number of Years = 5
Projected supply = 1,528,198 – 1,723,408

5
= 39,042
Therefore, 39,042 will be the increase for projected supply starting 2018.
66
Projected Years Projected Supply

2018 1,762,450
2019 1,801,492
2020 1,840,534
2021 1,879,576
2022 1,918,618
Table 3.22. Projected supply in arithmetic straight line method
Table 3.22 shows the projected supply in arithmetic straight line method.
To obtain the projected supply each year, projected increase is added. For the
year 2018 the projected supply is 1,762,450; 1,801,492 for 2019; 1,840,534 for
2020; 1,879,576 for 2021 and 1,918,618 for 2022.

67
3.3.1.F.b Statistical semi log method.
Year Historical Supply (y) Log y (x) (x2) x log y
2013 1,511,720 6.18 -2 4 -12.36
2014 1,667,664 6.22 -1 1 -6.22
2015 1,686,042 6.23 0 0 0.00
2016 1,704,623 6.23 1 1 6.23
2017 1,723,408 6.24 2 4 12.47
8,293,457 31 10 0.12
Table 3.23. Historical supply in statistical semi log method
Table 3.23 shows the historical supply in statistical semi log method. To
obtain log y, using Microsoft Excel, logarithm function is entered together with the
corresponding historical demand. For X log y, the obtained value of log y is
multiplied by x value of the corresponding year.

68
Formula in getting projected supply in statistical semi log method
Yc = Anti-log (Log Yc)
Yc = Anti-log [Log a + Log b (x)]
Where:
Log Yc = Log a + Log b (x)
Log a = ƩLog y / n
= 31 / 5
= 6.2
Log b = Ʃ x Log y / Ʃ x2
= 0.12 / 10
= 0.012
Therefore, to get projected supply,
Formula:
Yc = Anti-Log (Log Yc)
= Anti-Log [(6.2) + (0.012(3)]

69
Year Projected Supply (y) Log y (x)
2018 1,804,259 6.256 3
2019 1,856,240 6.269 4
2020 1,909,719 6.281 5
2021 1,964,738 6.293 6
2022 2,021,343 6.306 7
Table 3.24. Projected supply in statistical semi log method
Table 3.4 shows the projected supply in statistical semi log method. For
the year 2018 the projected supply is 1,804,259; 1,856,240 for 2019; 1,909,719
for 2020; 1,964,738 for 2021 and 2,021,343 for 2022.

70
3.3.1.F.c Parabolic projection method.
Historical Supply
Year (x) (x2) (x4) (xy) (x2y)
(y)
2013 1,511,720 -2 4 16 -3,023,440 6,046,881
2014 1,667,664 -1 1 1 -1,667,664 1,667,664
2015 1,686,042 0 0 0 0 0
2016 1,704,623 1 1 1 1,704,623 1,704,623
2017 1,723,408 2 4 16 3,446,816 6,893,631
8,293,457 0 10 34 460,334 16,312,799
Table 3.25. Historical supply in parabolic projection method
Table 3.25 shows the historical demand in parabolic method. In obtaining
the value for xy, historical demand from the corresponding year is multiplied by
the value of x. While for x2y, the historical demand from the corresponding year is
multiplied by the value in x2.

71
Formula in getting the projected demand using the parabolic projection method
Yc = a + bx + cx2
Where:
a = Ʃx4 (Ʃy) – Ʃx2 (Ʃx2y)
n (Ʃx4) - (Ʃx2)2
a = 34 (8,293,457) – 10 (16,312,799)
5 (34) – (10)2
a = 1,697,851
b = Ʃxy
Ʃx2
b = 460,334
10
b = 46,033
c = n (Ʃx2y) – (Ʃx2) (Ʃy)
n (Ʃx4) – (Ʃx2)2
c = 5 (16,312,799) – 10 (8,293,457)
5 (34) – (10)2
c = -19,580
Formula: Yc = a + bx + cx2
Yc = 1,697,851 + 46,033 (3) + -19,580 (9)

72
Year Projected Supply (y) (x)

2018 1,659,734 3
2019 1,568,709 4
2020 1,438,525 5
2021 1,269,182 6
2022 1,060,679 7
Table 3.26. Historical supply in parabolic projection method
Table 3.26 shows the projected supply in parabolic projection method. For
the year 2018 the projected supply is 1,659,734; 1,568,709 for 2019; 1,438,525
for 2020; 1,269,182 for 2021 and 1,060,679 for 2022.

73
3.3.1.G Standard deviation (supply).
3.3.1.G.a Arithmetic straight line method
Projected Years Projected Supply SD (x)

2018 1,762,450 3.10623E+12
2019 1,801,492 3.24537E+12
2020 1,840,534 3.38756E+12
2021 1,879,576 3.53281E+12
2022 1,918,618 3.68109E+12
9,202,669 1.69531E+13
Table 3.27. Standard deviation of arithmetic straight line method
deviation in arithmetic straight line method.
Formula:
[5 (∑𝑥 2)−(∑𝑥)2
Standard Deviation = √ 𝑛(𝑛−1)
[5 (1.69531E+13)−(9,202,669)]
= √
5(5−1)
= 61,730.81
74
3.3.1.G.b Statistical semi log method.
Year Projected Supply (y) Log y (x) SD (x2)

2018 1,804,259 6.256 3 3.25535E+12
2019 1,856,240 6.269 4 3.44563E+12
2020 1,909,719 6.281 5 3.64703E+12
2021 1,964,738 6.293 6 3.8602E+12
2022 2,021,343 6.306 7 4.08583E+12
9,556,299 1.8294E+13
Table 3.28. Standard deviation of statistical semi log method
deviation in statistical semi log method.
Formula:
[5 (∑𝑥 2)−(∑𝑥)2
𝑛(𝑛−1)
[5 (1.8294E+13)−(9,556,299)]
=√
5(5−1)
= 85,815.24
75
3.3.1.G.c Parabolic projection method.
Year Projected Supply (y) (x) SD (x2)

2018 1,659,734 3 2.75472E+12
2019 1,568,709 4 2.46085E+12
2020 1,438,525 5 2.06935E+12
2021 1,269,182 6 1.61082E+12
2022 1,060,679 7 1.12504E+12
6,996,829 1.00208E+13
Table 3.29. Standard deviation of parabolic projection method
deviation in parabolic projection method.
Formula:
[5 (∑𝑥 2)−(∑𝑥)2
𝑛(𝑛−1)
[5 (1.00208E+13)−(6,996,829)]
= √
5(5−1)
= 239,613.54
76
3.3.1.H Demand and supply gap analysis.
Margin of %
Historical Demand Supply Gap
Error (5%) Unsatisfied
2013 5,101,350 1,528,198 178,658 3,394,494 0.67
2014 5,157,567 1,667,664 174,495 3,315,408 0.64
2015 5,214,404 1,686,042 176,418 3,351,944 0.64
2016 5,271,241 1,704,623 178,331 3,388,288 0.64
2017 5,328,698 1,723,408 180,265 3,425,026 0.64
Table 3.30. Historical demand and supply gap analysis
Table 3.30 shows the projected demand and supply gap analysis of the
target market. Gap is obtained by subtracting historical demand to the sum of
supply and margin of error. To get the unsatisfied percentage of the target
market, demand is divided by the supply. For the year 2013, the demand and
supply gap is 3,394,494 with an unsatisfied percentage of 0.67; 3,315,408 for the
year 2014 with unsatisfied percentage of 0.64; 3,351,944 for the year 2015 with
unsatisfied percentage of 0.64; 3,388,288 for the year 2016 with unsatisfied
percentage of 0.64 and 3,425,026 for the year 2017 with unsatisfied percentage
of 0.64.
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3.3.1.I Projected demand and supply gap analysis.
Margin of %
Projected Demand Supply Gap
Error (5%) Unsatisfied
2018 5,387,357 1,804,259 179,155 3,403,943 0.63
2019 5,446,403 1,856,240 179,508 3,410,654 0.63
2020 5,506,095 1,909,719 179,819 3,416,558 0.62
2021 5,566,443 1,964,738 180,085 3,421,619 0.61
2022 5,627,451 2,021,343 180,305 3,425,803 0.61
Table 3.31. Projected demand and supply gap analysis
Table 3.31 shows the projected demand and supply gap analysis of the
target market. Gap is obtained by subtracting historical demand to the sum of
supply and margin of error. To get the unsatisfied percentage of the target
market, demand is divided by the supply. For the year 2018, the demand and
supply gap is 3,403,943 with an unsatisfied percentage of 0.63; 3,410,654 for the
year 2019 with unsatisfied percentage of 0.63; 3,416,558 for the year 2020 with
unsatisfied percentage of 0.62; 3,421,619 for the year 2021 with unsatisfied
percentage of 0.61 and 3,425,803 for the year 2022 with unsatisfied percentage
of 0.61.
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3.3.1.J Competitors market share.
Competitors Annual Supply Total Supply Market Share

Baygon 851,022 1,723,408 0.49
Lion-Tiger 783,367 1,723,408 0.45
Strike 89,019 1,723,408 0.05
Table 3.32. Competitors Market Share
To obtain the market share percentage of the competitors, the total annual
supply is divided by the total competitor’s supply. With this, Baygon appeared to
be the highest percentage of market share, as shown in Table 3.32, among the
competitors of Ecoil.
3.3.1.K Volume of production.
Market Volume of Daily Volume of

Year D/S Gap
Share Production Production
2017 3,425,026 0.045 154,126 514
Table 3.33. Volume of Production
Table 3.33 shows the volume of production. To obtain the volume of
production, demand and supply gap from last year is multiplied by the market
share. Market share is based from the competitor who has the lowest market
share.
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Previous Year
Projected Increase Increase of Total Volume of
Volume of
Year % Production Proposed Production
Production
2018 154,126 5 7,706.30 161,832
2019 161,832 5 8,091.60 169,923
2020 169,924 5 8,496.20 178,420
2021 178,420 5 8,921.00 187,341
2022 187,341 5 9,367.05 196,708
Table 3.34. Projected production from 2018-2022
Table 3.34 shows the projected production of ECo. from 2018 to 2022.
Year Projected Supply Volume of Production Total Supply

2018 1,762,450 161,832 1,924,282
2019 1,801,492 169,923 1,971,415
2020 1,840,534 178,420 2,018,954
2021 1,879,576 187,341 2,066,917
2022 1,918,618 196,708 2,115,326
Table 3.35. Projected supply from 2018-2022
Table 3.35 shows the projected supply of ECo. from 2018 to 2022.
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3.4 Marketing Program and System
ECo.’s marketing system includes a Market Research and Development
Program (Dosol et al., 2016). The objective of this program is to establish a
business strategy that will assess the company towards new product innovation.
Market research is the process of systematically evaluating the viability of
a new product through research conducted directly with the costumer. This
practice shall adapt by ECo. to discover how accurate its decision with regards
to targeting its market. This will also serve as a way of recording opinions and
other inputs from its customers in relation with the interest of the product. Market
research will be conducted by the marketing department of the company. It will
be done through surveys and product testing.
3.5 Pricing Strategies
ECo.’s pricing strategy aims to build and gain competitive sales
through continuously providing customer satisfaction. With this, producing an
affordable and quality product will be set as the company’s goal.
The price of the product will be determined by using a Cost-Based
Pricing approach (Zigu, n.d.), in which a summation of costs will be derived from
initially adding direct materials cost, direct labor cost, and overhead costs of the
product. Then, in order to create a profit margin, a markup percentage is added
to the total cost to determine the selling price. Figure 3.6 shows the pricing
strategy of ECo.
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Direct Materials
Costs
Total Markup Selling

Direct Labor
Costs Costs + Percentage = Price
Overhead Costs
Figure 3.6. Pricing strategy of ECo.
3.6 Channel of Distribution
A distribution channel in marketing refers to the path or route through
which goods and services travel to get from the place of production or
manufacture to the final users. It has its center of transportation and logistical
considerations (Francis, n.d.).
In reaching the end user of its product, ECo. will be using two structures of
channel distribution—direct ( as shown in Figure 3.7) and indirect distribution (as
shown in Figure 3.8). Through direct distribution, the product will be straightly
distributed to the end user. In indirect distribution, the company will be having
intermediaries. These intermediaries are the wholesalers and retailers that will
make the product available to the end users.

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Direct Distribution
Figure 3.7. Direct Distribution
Indirect Distribution
Figure 3.8. Indirect Distribution

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3.7 Marketing
The citric mosquito-repellent Coil provides hours of protection against
unwanted mosquito bites. It is a chemical-free mosquito coil, different from any
other brands out in the market, due to its organic base material from solid
wastes. This is what the company’s brand—Sitrus, would like to highlight. In
order to attract customers, marketing shall be timely and relevant. Its campaign is
composed of the wonders of solid wastes coming from citrus fruit peels which
have been evidently proven to have that quality of repelling mosquitoes. With
every purchase of Sitrus, the user is already being part of the campaign while he
enjoys indoor and outdoor activities with less worry of mosquito bites. Light and
fight the bite.
3.8 Branding
Figure 3.9. Brand name of the company
ECo. has developed a brand name that can be easily remembered and
identified by its market. Thus, the company chose Sitrus as its brand name.
Sitrus, as shown in Figure 3.9, is the Filipino term for “citrus”. It aims to use citrus
fruit peels in making different products under its name. It is also set to make an
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impact in promoting the wonders of citrus fruit peels which are usually put into
waste. The company strongly believes that coming up of a good brand name
should be something meaningful in order to attract more customers and
encourage them to explore other products that can be made with citrus fruit
peels.
Under the Sitrus brand is the Ecoil product. Ecoil is a mosquito repellent
coil designed to reduce the spreading of mosquitoes that transmit dengue virus.
Its base material is made of dried peels from calamansi. This mosquito coil is an
environment-friendly product as it is not only chemical-free but also supports a
campaign that highlights solid wastes reduction.
3.9 Labelling and Packaging
To protect the coils from breaking and to make the product more pleasing
and attractive to the eyes of the consumers, ECo. decided that the coils shall be
primarily packed with paper wrapper and then secondarily packed in boxes with
the metal stand. The primary color of the box is midnight blue which best
describes the night when most people use coils. Its secondary color is the color
of the calamansi peel that is used for the product—green.
The front side layout of the box consists of the brand name, Sitrus; the
product name, Ecoil citric mosquito-repellent coil; the product’s tagline, “Light and
fight the bite;” the variant—calamansi peel; the net weight; the number of coils in
a box; and a safety reminder. Located at the back side of the box are the
product, company, and campaign descriptions; direction for use; caution; first aid;
85
ingredients, the manufacturer—ECo.; the brand; the manufacturing and
expiration dates; and the barcode. The remaining four other sides have the same
layout design consisting of the product name, the brand, and the variant—
calamansi peel. Figure 3.10 shows the packaging layout of Ecoil.
Figure 3.10. Packaging

86
Conclusion
Market study is an exercise of gathering information to determine the
viability of something. An important aspect of marketing study involves the
determination of target market.
ECo.’s target market is the municipality of Guagua, Pampanga. The
proponents have conducted survey that has allowed them to identify the threats
and opportunities of their company. In terms of target market, the proponents
yielded 91% of the 106 respondents surveyed, which reflects the people who use
mosquito coil as repellent. Meaning, the proponents have targeted the exact
market for their proposed product. The conducted survey also reflects the
competitors of Ecoil. In the survey, Baygon yielded the highest users among the
listed brands. Thus, ECo.’s major competitor is Baygon.
Another important aspect of marketing study involves the analysis of the
demand and supply. The proponents gathered various data to compute for the
projected demand and supply of their market. In computing, three methods of
projecting demand and supply were applied. To identify which method will play
the best in projecting supply and demand, standard deviation was computed to
each method. As a result, arithmetic straight line method yielded the least error.
Thus, this will be the tool that the proponents will use in projecting demand and
supply.
Part of the demand and supply analysis is the gap determination, which
supplies an idea to the proponents to identify if the current supply is meeting the
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demand of their target market. In the analysis, from the year 2017 the gap of the
demand from the supply is 3,425,026 yielding a 64% unsatisfied market. This
means that, even if the market is abundant with suppliers there is still a wide
range of gap which reflects the incapacity of the supply to meet the demand. If
the supply is not able to meet the demand, this means that there is still space
and opportunity for the proponents to establish their business. Lastly, the
demand and supply gap analysis has also helped the proponents to compute for
their projected volume of production. Starting 2018, the projected total volume of
production is 161,832 pieces of mosquito coils.

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CHAPTER 4
Technical Study
A technical study of feasibility is defined as the evaluation of logistical
aspects of a business operation. It includes segments of materials, tools and
equipment needed for producing the product. Logistical aspects also include the
prospective list of suppliers and materials of the business. Moreover, technical
study provides a display of the actual product of the company, as well as the
product’s process and the company’s production schedule derived from the time
and motion study. The proposed plant layout and floor diagram will also exhibit in
this section.
4.1 Product
4.1.1 Specifications.
Weight: 12 grams
Diameter: 12 centimeters
Width: 0.03 centimeters
Color: brown
Base material: dried calamansi peel
Figure 4.1 shows the actual product of ECo.—Ecoil.

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Figure 4.1. Actual Product
4.2 Raw Materials and Suppliers
This section exhibits the raw materials needed in producing Ecoil, together
with its description. Part of this, is the list of the prospective suppliers of the
materials.
90
4.2.1 List of raw materials.
RAW MATERIALS DESCRIPTION
Calamansi Peels
The base material of Ecoil is made from
dried calamansi peels. Evidently, peels
of calamansi have active compound in
repelling mosquitoes.
Ecoil contains candle wax to supply a

Candle Wax
longer time frame for the product when
in use. According to a study, this wax
has a compound that makes a candle
burns slowly (Candles, n.d.). Thus, an
important factor of a mosquito coil.

91
Starch Starch is an integral part of adhesive
formulations. To create a stiff and
strengthen dough of Ecoil’s mixture,
starch is added. This is to make sure
that the dry ingredients of the coil are
closely intact.
Isopropyl Alcohol
Isopropyl alcohol is a flammable and
easily ignited chemical compound with
dozens of practical uses. Ecoil is
contained with this type of alcohol as a
fuel additive.
Citronella Oil
Ecoil’s major ingredients include
citronella oil to effectively repel
mosquitoes. Citronella oil is a type of oil
that can be obtained from the leaves and
stems of different species of the
lemongrass plant.
Table 4.1. List of Raw Materials
Table 4.1 shows the list of raw materials that are used to produce Ecoil.
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4.2.2 List of suppliers of raw materials.
Table 4.2 shows the list of suppliers of raw materials of ECo. with
their addresses and their contact numbers.
RAW
SUPPLIER(S) ADDRESS CONTACT
MATERIALS
 Tel No.
 Mang Inasal Guagua, +63 917 131 8000

Calamansi
Peels Pampanga  Tel No.
 Chowking
+63(45)9002912
Cell No.
0998-883-36881
Candle wax Kemrad Metro Manila
Tel No.
925-7400
Tel No.
Universal Starch
Starch Metro Manila
Industrial Corp. (02) 522-4495
Cell No.
Isopropyl High Chem 0966-330-8234
Metro Manila
Alcohol Trading Tel No.
(02) 362-2011
Cell No.
0932-854-4753
Citronella Oil Mscs Marketing San Juan City Tel No.
(02) 209-8099
Table 4.2. List Suppliers of Raw Materials

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4.2.3 List of materials.
Table 4.3 shows the list of materials to be used to produce Ecoil
and mostly for its packaging.
MATERIALS DESCRIPTION
Packaging carton
For hygienic and safety handling of
the finished product, ECo. has
developed a packaging for their
product. It is made of carton, where
the important aspect of Ecoil can be
found.
Paper Wrapper
A paper wrapper can be found inside
the packaging carton of Ecoil. This
paper wrapper will serve as the
primary packaging for the coils to
prevent them from breaking when
transporting.
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Palletizing Carton
The palletizing carton will serve as
primary storage for every bulk of
finished coils. This is also to supply
a better handling of finished
products when moving them.
Coil Holder
For every carton of Ecoil, a free coil
holder is provided inside the
packaging. The coil holder is
designed to hold the coil for more
convenient use.
Table 4.3. List of Materials

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4.2.4 List of suppliers of materials.
Table 4.4 shows the list of suppliers of materials of ECo. with their
addresses and their contact numbers.
MATERIALS SUPPLIER(S) ADDRESS CONTACT
Packaging The Artland Tel No.

Metro Manila
Carton Printer (02) 365 1052
Paper SPC Paper Bag Mobile No.

Manufacturing Metro Manila
Wrapper 0927-288-2226
Corp.
Mobile No.
Palletizing The Green Box Metro Manila
Carton Project Manila. 0915-426-8383
Coil Stand G.L Otometz Malolos, Tel No.

Corp. Bulacan +6344 816-0066
Table 4.4. List Suppliers of Materials

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4.3 Production Tools and Equipment
In this section, all needed tools and equipment are shown in Table 4.5
together with their respective uses in producing Ecoil.
TOOLS AND EQUIPMENT DESCRIPTION
In the production, the dehydrator has

Dehydrator
two functions – to dry calamansi
peels and molded coils. It uses hot air
instead of solar light. The shift fan
makes the hot air circulate inside the
oven for better drying process.
Capacity: 96 pans per batch

97
Powder Grinding Machine The base material of the citric
mosquito-repellent coil is made of
dried calamansi peels. This
equipment is designed to grind these
dried peels and turn them into
pulverized material.
Weight Capacity: 150kg
Electronic Weighing Scale The electronic weighing scale will be
used to weigh exact amount of the
dry ingredients needed in producing
Ecoil.
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The Mosquito Coil Making Machine is
high speed type equipment that has

Mosquito Coil Making Machine
six components molded in one
machine.
It comprises functions that are
required in producing the mosquito
coil. The functions are:
 Blender
 Kneader
 Crusher
 Conveyer
 Extruder
 Coil Stamping
Blender
The machine has a built-in blender that
gives homogenous mixing of raw
materials to make quality coils.
Blending Time: 15 minutes
Weight Capacity: 100 kg

99
Kneader
The machine has a built-in kneader
where blended material is kneaded with
wet materials and dye to achieve the
quality coils.
Kneading Time: 15 minutes
Maximum Volume Capacity: 100 kg
Crusher
Crusher feeds the mixed material fine
and gradually from kneader and
recycling conveyer to the step conveyer
automatically.
Crushing Time: 5 minutes
Capacity: 100 kg
100
Conveyor
Step Conveyer feeds the material from
blender to extruder automatically.
Extruder
For smooth and fast stamping, this
machine has a built-in extruder that
creates line sheet with 180 mm width and
4 mm thick in wet sheet form.
Extruding Time: 3 minutes
Stamper
The machine has a built-in coil stamper,
designed to create a spiral formed shape.
Max Product Volume: 150 pairs per
minute
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Packaging Machine
Automatic mosquito coil packaging
machine adopts servo motor with
higher control precision realizing step-
less control and dynamic adjusting
during operation. It has photo-cell
detecting the color mark and dual-
tracking system. This machine can
effectively eliminate any packing error
and avoid materials waste.
Capacity: 150 pairs per minute
Mixing Paddle
The mixing paddle will be used to mix
the dry and liquid ingredients together.
Table 4.5. List of production tools and equipment

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4.4 Material Handling Equipment
According to the general provision of OSH Standards Rule 1150, a
company must comply with the use of equipment for material handling and
storage (Occupational Safety and Health Standards, 2015). Material handling
(MH) involves short-distance movement that usually takes place within the
confines of a building such as a plant or a warehouse and between a building.
Table 4.6 shows the list of material handling equipment used in the production.
EQUIPMENT DESCRIPTION
Trolley
A trolley will be used to move
material from one location to
another.
Coil Trays
After the coils have been formed
using the forming mold, next
process is drying. Coil trays will
serve as containers that will hold
the coils for drying.

103
Box Cart
Box Carts will serve as holder for
box containers which are used for
handling or carrying small unit of
material load.
Pallets
Pallets are usually made of wood.
These pallets will serve as
structural foundation of a unit load
of raw materials which allows
handling and storage efficiencies.
Table 4.6. List of Material Handling Equipment

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4.5 Production Worker Uniform
OSH Standard Rule 1080 mandates a strict proper dress code that
includes providing of workers’ protective equipment for eyes, face, hands, and
feet (Occupational Safety and Health Standards, 2015). In accordance to this,
the company will require its workers a dress code that would serve as their
uniform for their day-to-day work. Table 4.7 displays the company’s dress code
and basic factory gears for its production workers.
PHOTO DESCRIPTION
The production workers of
ECo. will be wearing yellow
shirt and black trousers as
their day-to-day uniform. This
uniform is designed and

Yellow Shirt and
Black Trousers required for both male and
female workers.
As part of the Good
Manufacturing Practices, no
worker shall be allowed to get
inside the production without
wearing this uniform.

105
Safety Shoes Production workers are also
required to wear black safety
shoes as part of their dress
code. Both male and females
are required to follow the
wearing of these shoes. This is
to set uniformity and safety
inside the production.
Apron
Before entering the production,
each worker is required to
wear a bib apron. Only the
required apron set by the
management will be the one
considered acceptable.
Therefore, improvised aprons
are prohibited. Wearing this
apron will prevent any stain
from leaking onto the worker’s
uniform. This is to promote
cleanliness and uniformity.

106
Production workers are

Hair Cap
required to wear disposable
hair cap. Wearing of hair cap
will prevent any strand of hair
from contacting the product,
and clean sanitized equipment.
Facemask
Wearing of facemask shall
also be required to the workers
before entering the production.
This is to prevent them from
inhaling the smoke coming
from the equipment that may
harm their health.
Reusable Gloves
Production workers are
required to wear gloves. These
gloves will protect their hands
from any dirt causing bacteria
that may harm their health.
Wearing these will be part of
the PPE monitoring.
Table 4.7. Production Worker Uniform

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4.6 Furniture, Fixtures and Equipment
Furniture, Fixtures and Equipment (FFE) are assets that depreciate over
their useful life. FFE includes office furniture, fixtures, and equipment, such as
machinery, computers, tables, and any other asset that is not related to the
building structure. When valuing a firm, analysts take into account the costs
related to FFE because these assets depreciate over the long-term (What is
Furniture, Fixtures, and Equipment – FFE?, n.d.). On Table 4.8 are the furniture
and fixtures equipment in the office; Table 4.9 shows the production FFE; Table
4.10 shows the toilet room FFE; Table 4.11 shows the breakroom FFE; Table
4.12 shows the FFE in tool room.
4.6.1 Office
Executive Chair Office Table

108
Conference Room Chairs with Table

Client Chairs
File Drawers Lights
Desktop Computer Telephone

109
Printer Photocopier Machine
Air Conditioner Whiteboard
Vault
Table 4.8. Office FFE

110
4.6.2 Production
Process Table Waste Bins
Emergency Light
Exhaust Fan
Safety Signs Fire Extinguisher

111
Lights Digital Clock
Table 4.9. Production FFE
4.6.3 Toilet room
Toilet Bowl Sink
Toilet Accessories
Table 4.10. Toilet Room FFE

112
4.6.4 Breakroom
Dining Table Medicine Cabinet
Lockers Water Dispenser
Lights
Wall Fan
Table 4.11. Breakroom FFE

113
4.6.5 Tool room
Tools Cabinet Cleaning Materials
Table 4.12. Tool Room FFE

114
4.7 Manufacturing Process
This section exhibits the manufacturing process of Ecoil through a process
flow chart. Manufacturing process consist of the steps in which raw materials are
converted into finished product. Figure 4.2 shows the preparation process flow
chart while figure 4.3 shows the rest of the process to produce Ecoil.
Preparation
Drying
Measuring
Grinding
Sieving
Figure 4.2. Preparation process flow chart
Preparation
Dumping
Blending
Kneading
Crushing
Extruding
Stamping
Drying
Packaging
Figure 4.3. Process flow chart

115
4.7.1 Process description
Preparation is divided into four sub processes:
 Drying – this involves dehydrating the
calamansi peels through the use of
dehydrator.
Preparation  Grinding – this involves pulverizing the dried
calamansi peels until they become dust or
powder.
 Sieving – large residue left from the grinded
peels, powder is sieved.
 Measuring – the last process of preparation

is measuring the other raw materials needed.

In this process, all the dry raw materials needed for
producing quality coils will be dumped into the
Dumping blending chamber according from big to small weights
of each dry raw material.
After the dry raw materials have been dumped into
blending chamber, the next process is blending. In this

Blending
process, all the dry raw materials will be mixed for 15
minutes to create homogenous mixture

116
After creating homogenous mixture from the dry raw
materials, the next process is kneading. In this
process, the mixture will be kneaded for 15 minutes

Kneading
with wet raw materials and dye to achieve the quality
coils.
After the mixture has been kneaded with wet raw
materials, the next process is crushing. For fine
mixture, crushing takes place before extruding. The

Crushing
mixture will be crushed for 15 minutes and will
automatically transfer to the conveyor going to the
extruder.
Extruding is the process where the mixture forming
Extruding a coil will be fed to a die that creates a line sheet
for stamping process.
Stamping is the process of forming the designed
shape of the mosquito coils. The line sheets produced

Stamping
by the extruder are transferred into the stamping
machine with molds forming spiral-shaped coils.

117
After forming the coil, the next process is drying.
In drying, the molded coils are spread on a tray

Drying
for 1 hour to achieve its solidified frame.
After drying, the coils are ready to be packaged.
The primary packaging of the coil is made of

Packaging
paper wrapper, while the secondary wrapper is
made of carton where the aspects of the product
are imprinted
Table 4.13. Process Description
Table 4.13 shows the process description of producing Ecoil.

118
4.8 Time Study
Table 4.14 shows the time and motion study of producing Ecoil that was
conducted by the proponents.
Table 4.14. Time Study

119
4.9 Production Schedule
Table 4.15. Production schedule
Daily volume of No. of batches Number of coils

production daily produced per batch
Pair 17,400 8,700

2
Carton 3,480 1,740
Table 4.16. Daily volume of production
Table 4.15 shows the production schedule of ECo. While Table 4.16
shows ECo.’s daily volume of production, number of batch daily, and number of
coils produced per batch.

120
4.10 Plant Layout
Figure 4.4. Plant Layout

121
4.11 Floor Diagram
Figure 4.5. Floor Diagram

122
4.12 Plant Location
Figure 4.6. Plant Location
As shown in Figure 4.6, ECo. will be located at 0585, Purok 4, San
Agustin, Betis, Guagua, Pampanga. The establishment has a total area of 85
square meters. ECo. has made sure that their plant location is accessible to its
customers and suppliers. Shown in Figure 4.4 is the plant layout while in Figure
4.5 is the floor diagram.

123
The following were the factors that the proponents have considered in the
selection of their plant location.
4.12.1 Supply of utilities. This involves the electricity, internet
connection, telephone, and water supply that will support the company’s
operation.
4.12.1.A Power supply. The availability of power supply or electricity is
one of the major factors that the proponents have considered in the selection of
their plant location. Electricity plays a huge role in the stability of the company’s
operation. With this, the distributor of the power supply in the area is the
Pampanga II Electric Cooperative, Inc., (PELCO II).
4.12.1.B Water supply. Another major consideration of the proponents in
selecting the plant location is the availability of water supply in the area. Water
supply supports the company’s operation in many ways. It supplies the personal
needs of the employees and the need for sanitation of the whole plant. The water
system in Betis, Guagua, Pampanga is provided by Guagua Water District.
4.12.1.C Telephone/internet connection. Communication is an integral
aspect of the company’s operation. Telephone and internet connection serve the
fastest and easiest way for the company to reach its customers and suppliers.
Through telephone and internet connection, dissemination of information is
easier for people who are working within the company. With this, the company
has set Philippine Long Distance Telephone (PLDT) as their telephone signal
and internet provider.

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4.12.2 Accessibility. This defines the accessibility of the company’s
location to the suppliers and its customers. The proponents have made sure that
the company is accessible by establishing the plant within the area of the target
market—Betis, Guagua, Pampanga.
4.12.3. Safety. ECo. values the safety of each individual. Thus, the
chosen location was made sure to not harm anyone around the plant. ECo. is
safe to operate because the materials it uses in producing its products are
chemical-free.
4.13 Waste Disposal Management
ECo.’s key to success involves a partnership with the earth. Thus, one of
the company’s priorities in the foundation of its firm is to manage waste disposal
the best way it could.
The company’s waste disposal management practically includes a waste
monitoring system. This will start by introducing the system to all employees of
the company and encouraging each and every one of them to cooperate. Waste
monitoring system involves the practice of proper waste segregation. Waste bins
will be sorted according to three Rs—Reduce, Reuse, and Recycle. Furthermore,
the company would also establish a program in which it will give way to
innovation using anything that has been collected as recyclable materials. In this
way, the company will yield new products by the use of what has been thrown to
waste bins. This will be called “wheeling of wastes” in which wastes are not
thrown but recover to wheel new products.

125
Conclusion
The technical study mostly covers the production operation of the
company. It provides information about the product plus the materials,
technology, and the tools and equipment that shall be used in order to
successfully produce it. Along with this information are the lists of suppliers,
including their location and their contact media, of each material. The furniture
and fixtures of the company, the uniform and the personal protective equipment
of the production workers are also included in this chapter. The manufacturing
process and process flow chart are also present here, and the tool used to set
the standard process time of the production—the time study.
Same with the first chapter, chapter four also indicated ECo.’s location.
The factors considered in the selection of the company location were the supply
of utilities including power supply, water supply, and telephone/internet
connection; accessibility to customers and suppliers; and its safety to its
surroundings. Plant layout and floor diagram were also added. They show the
overall structure of the company. These help to have a more efficient transfer of
materials, work, and information from one place to the other. ECo.’s way of waste
disposal management includes monitoring system which involves the practice of
waste segregation.
Taking everything into account, it may well be argued that learning the
technical aspect of a production company is also like knowing the heart of the
human body.
126
CHAPTER 5
Financial Study
Financial aspect of a feasibility study is the exercise of computing and
evaluating the business or a project from a variety of standpoints in order to
completely apprehend the financial status and determine how to strengthen a
business in terms of profitability, solvency, liquidity and stability (Financial
Analysis, n.d.).
In order to determine the mentioned aspects, a financial analyst focuses
specifically on the evaluation or establishment of income statement, balance
sheet, and cash flow statement. With this, economic movements are obtained in
which financial policies and long term plans for a business entity are based.
Furthermore, financial analysis provides an overview to the investor if one’s
funds have been invested effectively. In this context, funds are major resources
of the company and therefore an important facet that has to be handled wisely
and manifestly evaluated. By means of evaluating, a financial analysis must
supply a higher accuracy of information in terms of financing for the company.
The higher the accuracy of a financial analysis, the better decision making the
company will have in the future.

127
5.1 ECo.’s Major Financial Assumptions
1. The projected average inflation rate from 2018 to 2022 is 3.5% (Statista,
2018).
2. Price per direct materials will increase by 3.5% yearly due to inflation.
3. Number of production is expected to increase by 5% yearly.
4. Price per indirect materials will increase by 3.5% yearly due to inflation
5. Desired ending inventory is expected to be 1% of the total inventory on
hand before sales.
6. The value of defective goods is set to be 0.07% of total inventory on hand
before sales.
7. Electricity expense is expected to increase by 5% yearly.
8. Unit cost will be marked up by 200% to cover other operating expense for
the first year and to increase 3.5% yearly.
9. Salaries of all employees will increase by 5% yearly.
10. Advertising expense to increase by 4% yearly based on the pre-operation
advertisement.
11. Office supplies purchased is 80%of supplies beginning.
12. Office supplies inventory is 60% of total office supplies.
13. Production tools, and supplies purchased is 200% of production tools and
supplies beginning.
14. Production tools and supplies inventory is 40% of total production tools
and supplies.
128
15. Bathroom and cleanings supplies purchased is 200% of bathroom and
cleaning supplies beginning.
16. Bathroom and cleaning supplies inventory is 40% of total bathroom and
cleaning supplies.
17. Accounts receivable is estimated to be 10% of sales.
18. Partners withdraw 40% of the total of beginning capital and net income
yearly from 2018 to 2022.
19. Inventories increases 5% yearly.
20. The income tax of the company is based on the TRAIN Law: 32% for Php
2,000,000 to Php 8,000,000, and 35% for Php 8,000,000 above.

129
5.2 Project Cost
Table 5.1 shows the project cost of ECo. This includes investments in
fixed assets and pre-operating expenses.
ECo.
PROJECT COST
Investment in Fixed Assets:
Lot 350,000.00
Building 500,000.00
Production equipment 2,655,705.03
Delivery Equipment 180,000.00
Furniture and Fixtures 214,811.89
Office Equipment 209,326.61
Total Investment in Fixed Assets 4,109,843.53
Pre-operating Expenses
Utilities Installation 11,000.00

Legal Fees 9,525.00
SEC Registration 5,000.00
BIR Registration 540.00
FDA Registration 2,515.00
LTO Registration 2,265.00
Advertising Expense 2,050.00
Professional Fee 8,000.00
Production Tool and Utilities 23,157.00
Office Supplies 21,383.00
Bathroom and Cleaning Supplies 2,120.00
Total Pre-operating Expenses 87,555.00
PROJECT COST (Php) 4,197,398.53
Table 5.1. Project cost

130
5.3 Pre-operating Cash Flows
Table 5.2 shows the pre-operating cash flows of ECo. This includes cash
inflows and outflows, and ending capital balance.
ECo.
PRE-OPERATING CASH FLOWS
Cash Inflows:
Dantes, Eric A. 1,000,000.00

Guevarra, Arldhail S. 1,000,000.00
Guevarra, Jayson Noel E. 1,000,000.00
Laxamana, Hezel Grace C. 1,000,000.00
Limpin, Zairrah K. 1,000,000.00
Torres, Jerome Christian A. 1,000,000.00
Total Cash Inflows 6,000,000.00
Cash Outflows:
Lot 350,000.00
Building 500,000.00
Purchase of Production Equipment 2,655,705.03
Purchase of Delivery Equipment 180,000.00
Purchase of Furniture and Fixtures 214,811.89
Purchase of Office Equipment 209,326.61
Utilities Installation 11,000.00
Legal Fees 9,525.00
SEC Registration 5,000.00
BIR Registration 540.00
FDA Registration 2,515.00
LTO Registration 2,265.00
Advertising Expense 2,050.00
Professional Fee 8,000.00
Production Tool and Utilities 23,157.00
Total Cash Outflows 4,197,398.53
Cash Balance, End (Php) 1,802,601.47
Table 5.2. Pre-operating cash flows

131
5.4 Pre-operating Statement of Financial Position
Table 5.3 shows the pre-operating statement of financial position of ECo.
This includes current assets, non-current assets, liabilities, and partners’ equity.
ECo.
PRE-OPERATING STATEMENT OF FINANCIAL POSITION
Current Assets:
Cash 1,802,601.47
Production Tools and Utilities 23,157.00
Other Prepaid Expenses 40,895.00
Total Current Assets 1,890,156.47
Non-Current Assets:
Lot 350,000.00
Building 500,000.00
Production Equipment 2,655,705.03
Delivery Equipment 180,000.00
Furniture and Fixtures 214,811.89
Office Equipment 209,326.61
Total Non-Current Assets 4,109,843.53
Total Assets 6,000,000.00

Partner's Equity
Dantes, Capital 1,000,000.00

Guevarra, A., Capital 1,000,000.00
Guevarra, J., Capital 1,000,000.00
Laxamana, Capital 1,000,000.00
Limpin, Capital 1,000,000.00
Torres, Capital 1,000,000.00
Total Partner's Equity 6,000,000.00
Table 5.3. Pre-operating statement of financial position

132
5.5 Table of Equipment
Table 5.4 shows the table of equipment of ECo. This includes the costs of
production, furniture and fixtures, office, and delivery equipment.
TABLE OF EQUIPMENT
Production Equipment
Description Quantity Price/Unit Total Cost Useful Life
Dehydrator 2 64,792.59 129,585.18 9
Mosquito Coil Making Machine Set 1 2,000,000.00 2,000,000.00 10

Packaging Machine 1 400,000.00 400,000.00 9
Trolley 4 1,789.00 7,156.00 9
Coil Tray 5 2,000.00 10,000.00 9
Box cart 2 9,180.31 18,360.62 9
Pallet 10 380.00 3,800.00 9
Powder Grinding Machine 2 37,403.12 74,806.23 9
Electronic Weighing Scale 3 3,999.00 11,997.00 8
TOTAL 2,655,705.03
Furniture and Fixtures

Long table 1 10,000.00 10,000.00 8

Process table 3 8,000.00 24,000.00 8
Foldable chairs and tables 2 7,499.00 14,998.00 8
Digital clock 5 1,309.00 6,545.00 8
Lights 15 170.00 2,550.00 8
Office table 5 5,000.00 25,000.00 7
Executive chair 5 3,200.00 16,000.00 7
Client chair 5 3,000.00 15,000.00 7
Conference chairs and table set 1 8,100.75 8,100.75 7
File drawers 3 7,000.00 21,000.00 8
Emergency light 10 799.00 7,990.00 8
Fire extinguishers 2 1,199.00 2,398.00 8
Wall fan 4 1,295.00 5,180.00 8
Exhaust fan 5 1,389.00 6,945.00 8
Safety signs set 1 1,528.34 1,528.34 6
Waste bins 10 1,890.18 18,901.80 8
Whiteboard 2 1,000.00 2,000.00 8
Medicine cabinet 1 1,305.00 1,305.00 8
133
Lockers 1 9,985.00 9,985.00 8

Water dispenser 1 4,299.00 4,299.00 8
Toilet bowl 1 3,672.34 3,672.34 10
Sink 1 1,712.16 1,712.16 10
Bathroom mirror 1 301.00 301.00 10
Tools cabinet 1 5,400.50 5,400.50 8
TOTAL 214,811.89
Office Equipment
Desktop computer 6 21,000.00 126,000.00 8

Printer 3 3,500.00 10,500.00 8
Photocopier machine 1 38,726.61 38,726.61 8
Air conditioner 2 12,500.00 25,000.00 8
Telephone 3 700.00 2,100.00 8
Vault 1 7,000.00 7,000.00 8
TOTAL 209,326.61
Delivery Equipment
Delivery van 1 180,000.00 180,000.00 10
TOTAL 180,000.00
Table 5.4. Table of equipment

134
5.6 Schedule of Depreciation and Amortization
Table 5.5 shows the schedule of depreciation and amortization of ECo.
This includes the depreciation values of production, furniture and fixtures, office,
and delivery equipment.
SCHEDULE OF DEPRECIATION AND AMORTIZATION
Production Equipment
Total
Depreciation
Dehydrator 2 64,792.59 129,585.18 9 7,199.18

Mosquito Coil Making Machine Set 1 2,000,000.00 2,000,000.00 10 200,000.00
Packaging Machine 1 400,000.00 400,000.00 9 44,444.44
Trolley 4 1,789.00 7,156.00 9 198.78
Coil Tray 5 2,000.00 10,000.00 9 222.22
Box cart 2 9,180.31 18,360.62 9 1,020.03
Pallet 10 380.00 3,800.00 9 42.22
Powder Grinding Machine 2 37,403.12 74,806.23 9 4,155.90
Electronic Weighing Scale 3 3,999.00 11,997.00 8 499.88
TOTAL 2,655,705.03 257,782.65
Furniture and Fixtures

Total
Depreciation
Long table 1 10,000.00 10,000.00 8 1,250.00

Process table 3 8,000.00 24,000.00 8 1,000.00
Foldable chairs and tables 2 7,499.00 14,998.00 8 937.38
Digital clock 5 1,309.00 6,545.00 8 163.63
Lights 15 170.00 2,550.00 8 21.25
Office table 5 5,000.00 25,000.00 7 714.29
Executive chair 5 3,200.00 16,000.00 7 457.14
Client chair 5 3,000.00 15,000.00 7 428.57
Conference chairs and table set 1 8,100.75 8,100.75 7 1,157.25
File drawers 3 7,000.00 21,000.00 8 875.00
Emergency light 10 799.00 7,990.00 8 99.88
Fire extinguishers 2 1,199.00 2,398.00 8 149.88
Wall fan 4 1,295.00 5,180.00 8 161.88
Exhaust fan 5 1,389.00 6,945.00 8 173.63
Safety signs set 1 1,528.34 1,528.34 6 254.72
Waste bins 10 1,890.18 18,901.80 8 236.27
Whiteboard 2 1,000.00 2,000.00 8 125.00
Medicine cabinet 1 1,305.00 1,305.00 8 163.13
Lockers 1 9,985.00 9,985.00 8 1,248.13
Water dispenser 1 4,299.00 4,299.00 8 537.38
135
Toilet bowl 1 3,672.34 3,672.34 10 367.23

Sink 1 1,712.16 1,712.16 10 171.22
Bathroom mirror 1 301.00 301.00 10 30.10
Tools cabinet 1 5,400.50 5,400.50 8 675.06
TOTAL 214,811.89 11,397.98
Office Equipment
Total
Depreciation
Desktop computer 6 21,000.00 126,000.00 8 2,625.00

Printer 3 3,500.00 10,500.00 8 437.50
Photocopier machine 1 38,726.61 38,726.61 8 4,840.83
Air conditioner 2 12,500.00 25,000.00 8 1,562.50
Telephone 3 700.00 2,100.00 8 87.50
Vault 1 7,000.00 7,000.00 8 875.00
TOTAL 209,326.61 10,428.33
Delivery Equipment
Total
Depreciation
Delivery van 1 180,000.00 180,000.00 10 18,000.00
TOTAL 180,000.00 18,000.00
Table 5.5. Schedule of depreciation and amortization

136
5.7 Schedule of Pre-operating Expenses
Table 5.6 shows the schedule of pre-operating expenses of ECo. This
includes the expenses for utilities, legal fees, Securities and Exchange
Commission (SEC), Food and Drug Administration (FDA), and Land
Transportation Office (LTO) registration, advertising expense, and professional
fee, office supplies, production tools and utilities, and bathroom and cleaning
supplies.
SCHEDULE OF PRE-OPERATING EXPENSES

Utilities
Description Institution Total Cost
Water Supply Guagua Water District 4,000.00

Electricity PELCO II 5,000.00
Telephone with Internet PLDT 2,000.00
TOTAL 11,000.00
Legal Fees
Description Quantity Price/Permit Total Cost
Mayor's Permit 1 1,500.00 1,500.00

Sanitary Permit 1 500.00 500.00
Garbage fee 1 1,500.00 1,500.00
Health Fee 1 500.00 500.00
Fire Inspepction Fee 1 300.00 300.00
Fire Code Fee (PD 1185) 1 50.00 50.00
Business Plate 1 2,000.00 2,000.00
Sticker 1 50.00 50.00
Zoning 1 300.00 300.00
Environment Inspection 1 500.00 500.00
Regulatory Fee 1 2,175.00 2,175.00
Plumbing Inspection Fee 1 150.00 150.00
TOTAL 9,525.00
SEC Registration
Description Total Cost
SEC Registration Fee 5,000.00
TOTAL 5,000.00
FDA Registration
FDA Registration Fee 2,515.00

137
TOTAL 2,515.00
BIR Registration
Annual Registration Fee 500.00

Certification Fee 15.00
Documentary Stamp Tax 25.00
TOTAL 540.00
LTO Registration
LTO Registration and Testing 2,265.00
TOTAL 2,265.00
Advertising Expense
Description Quantity Price/Unit Total Cost
Streamers (4x10 ft.) 5 270.00 1,350.00

Posters (18x24 in.) 10 50.00 500.00
Flyers (8.5x4.5 in.) 250 0.80 200.00
TOTAL 2,050.00
Professional Fee
Description no. Total Cost
Feasibility Consultant 1 8,000.00
TOTAL 8,000.00
Office Supplies
Description Unit Quantity Cost/Unit Total Cost
Bundy Clock pcs. 1 8,995.00 8,995.00

Time Card pcs. 200 1.26 252.00
First Aid Kit sets 2 250.00 500.00
Flash drives pcs. 2 350.00 700.00
Wall clock pcs. 2 180.00 360.00
Puncher pcs. 2 216.00 432.00
Columnar Book pcs. 10 35.00 350.00
Ledger Book pcs. 10 35.00 350.00
Record Book pcs. 10 60.00 600.00
Bond Paper (Letter Size) reams 5 279.00 1,395.00
Bond Paper (Legal Size) reams 5 320.00 1,600.00
Stapler pcs. 2 99.00 198.00
Staple Wires boxes 20 8.00 160.00
Folder (Letter Size) pcs. 100 3.25 325.00
Folder (Legal Size) pcs. 100 3.75 375.00
Envelope (Letter Size) pcs. 100 2.00 200.00
Envelope (Legal Size) pcs. 100 3.00 300.00
Pencil pcs. 5 10.00 50.00
Ballpen pcs. 20 12.00 240.00
Erasers pcs. 5 10.00 50.00
Scissors pairs 2 35.00 70.00
138
10-column Worksheet pad 10 48.00 480.00

Scotch Tape pcs. 5 45.00 225.00
Tape Dispenser pcs. 3 42.00 126.00
Permanent Marker boxes 3 170.00 510.00
Whiteboard Marker boxes 3 405.00 1,215.00
Correction Tape boxes 5 25.00 125.00
Ruler pcs. 5 10.00 50.00
Calculator pcs. 2 480.00 960.00
Liquid Paper pcs. 5 38.00 190.00
TOTAL 21,383.00
Production Tools and Utilities
Description Quantity Cost/Unit Total Cost
Mixing Paddle 2 1,583.00 3,166.00
Shirt 11 120.00 1,320.00
Safety Shoes 11 1,491.00 16,401.00

Apron 11 70.00 770.00
Hair cap 20 50.00 1,000.00
Face mask 20 10.00 200.00
Gloves 20 15.00 300.00
TOTAL 23,157.00
Bathroom and Cleaning Supplies

Description Quantity Cost/Unit Total Cost
Mop 3 80.00 240.00

Pail 3 80.00 240.00
Dipper 3 20.00 60.00
Dust Pan 3 50.00 150.00
Broom 3 120.00 360.00
Dishwashing Liquid 10 30.00 300.00
Detergent Powder 10 9.00 90.00
Hand Soap 4 45.00 180.00
Garage Plastic Bag 10 45.00 450.00
Rag 10 5.00 50.00
TOTAL 2,120.00
Table 5.6. Schedule of pre-operating expenses

139
5.8 Direct and Indirect Materials Requirements
Table 5.7 shows the direct and indirect materials requirements for Ecoil.
This includes materials required to produce a pair of coils and materials required
for the year 2018 to 2022.
ECo.
For the Year 2018
Direct Materials
Qty.
Raw Materials Unit Price Qty. Used/Pc Cost/Pc
Purchased
Calamansi Peels g 1000 3.00 90.00 0.27
Starch g 1000 35.00 8.40 0.29
Candle Wax g 1000 15.00 8.40 0.13
Citronella Oil ml 1000 46.00 2.00 0.09
Isoprophyl Alcohol ml 1000 52.00 5.00 0.26
Total DM/Pair 151.00 1.04
Indirect Materials
Qty.
Materials Unit Price Qty. Used/Bat Cost/Bat
Purchased
Packaging Carton pc 1 1.25 50 62.50
Paper Wrapper pc 1 0.13 50 6.50
Palletizing Carton pc 1 3.00 1 3.00
Coil Holder pc 1 0.40 50 20.00
Total IM/Batch 4.78 92.00
DIRECT MATERIALS REQUIREMENT

ECo.
For the Year 2018-2022
Direct Materials 2018
Raw Materials Cost/Pair Per Pair Production 2018 Total DM Cost
Calamansi Peels 0.27 5,335,200 1,440,504.00
Starch 0.29 5,335,200 1,568,548.80
Candle Wax 0.13 5,335,200 672,235.20
Citronella Oil 0.09 5,335,200 490,838.40
Isoprophyl Alcohol 0.26 5,335,200 1,387,152.00
Total DM/Pair 1.04 5,559,278.40

Raw Materials Cost/ Pair Production 2019 Total DM Cost
Calamansi Peels 0.28 5,601,960 1,565,467.72
Starch 0.30 5,601,960 1,704,620.41
Candle Wax 0.13 5,601,960 730,551.60
Citronella Oil 0.10 5,601,960 533,418.63
Total DM/Pair 1.08 6,041,545.80
140

Calamansi Peels 0.29 5,882,058 1,701,272.05
Starch 0.31 5,882,058 1,852,496.23
Candle Wax 0.13 5,882,058 793,926.96
Citronella Oil 0.10 5,882,058 579,692.70
Total DM/Pair 1.12 6,565,649.90

Calamansi Peels 0.30 6,176,161 1848857.40
Starch 0.33 6,176,161 2013200.28
Candle Wax 0.14 6,176,161 862800.12
Citronella Oil 0.10 6,176,161 629981.04
Isoprophyl Alcohol 0.29 6,176,161 1780381.20
Total DM/Pair 1.16 7135220.03

Calamansi Peels 0.31 6,484,969 2,009,245.78
Starch 0.34 6,484,969 2,187,845.40
Candle Wax 0.14 6,484,969 937,648.03
Citronella Oil 0.11 6,484,969 684,631.89
Total DM/Pair 1.20 7,754,200.37
INDIRECT MATERIALS REQUIREMENT
ECo.
For the Year 2018-2022
Indirect Materials 2018
Materials Cost/Bat Cost/Pc Production 2018 Total IM Cost
Packaging Carton 62.50 0.25 5,335,200 1,333,800.00
Paper Wrapper 6.50 0.03 5,335,200 138,715.20
Palletizing Carton 3.00 0.01 5,335,200 64,022.40
Coil Holder 20.00 0.08 5,335,200 426,816.00
Total IM Cost 92.00 0.37 1,963,353.60

Paper Wrapper 6.73 0.03 5,601,960 150,748.74
141
Coil Holder 20.70 0.08 5,601,960 463,842.29

Total IM Cost 95.22 0.38 2,133,674.52

Paper Wrapper 7.07 0.03 5,882,058 166,322.25
Coil Holder 21.74 0.09 5,882,058 511,386.12
Total IM Cost 100.20 0.40 2,357,490.02

Paper Wrapper 7.42 0.03 6,176,161 183,331.92
Coil Holder 22.82 0.09 6,176,161 563,803.20
Total IM Cost 105.21 0.42 2,599,119.97

Packaging Carton 75.12 0.30 6,484,968.95 1,948,611.25
Paper Wrapper 7.79 0.03 6,484,968.95 202,163.72
Palletizing Carton 3.60 0.01 6,484,968.95 93,430.24
Coil Holder 23.96 0.10 6,484,968.95 621,525.91
Total IM Cost 110.48 0.44 2,865,731.12
Table 5.7. Material requirements

142
5.9 Unit Cost and Cost of Goods Sold
Table 5.8 shows the computation for unit cost and cost of goods sold. This
also includes manufacturing cost and the beginning and ending inventories of
finished goods.
ECo.
COMPUTATION OF UNIT COST
2018 2019 2020 2021 2022
Direct Materials 5,559,278.40 6,041,545.80 6,565,649.90 7,135,220.03 7,754,200.37
Direct Labor 474,240.00 497,952.00 522,849.60 548,992.08 576,441.68
Manufacturing Overhead
Indirect Materials 1,963,353.60 2,133,674.52 2,357,490.02 2,599,119.97 2,865,731.12
Electricity - Production 75,600.00 79,380.00 83,349.00 87,516.45 91,892.27
Water - Production 37,800.00 39,690.00 41,674.50 43,758.23 45,946.14
Production Tools & Supplies Expense 41,682.60 50,019.12 60,022.94 72,027.53 86,433.04
Depreciation of Production Equipment (257,782.65) (257,782.65) (257,782.65) (257,782.65) (257,782.65)
Total Manufacturing Cost 7,894,171.95 8,584,478.79 9,373,253.31 10,228,851.63 11,162,861.97
Pairs of coil produced 5,428,800 5,700,240 5,985,252 6,284,515 6,598,740
Unit cost per pair 1.45 1.51 1.57 1.63 1.69

143
Selling price per pair 2.91 3.01 3.13 3.26 3.38
ECo.
COST OF GOODS SOLD
2018 2019 2020 2021 2022
Direct Materials 5,559,278.40 6,041,545.80 6,565,649.90 7,135,220.03 7,754,200.37
Direct Labor 474,240.00 497,952.00 522,849.60 548,992.08 576,441.68
Manufacturing Overhead
Indirect Materials 1,963,353.60 2,133,674.52 2,357,490.02 2,599,119.97 2,865,731.12
Electricity - Production 75,600.00 79,380.00 83,349.00 87,516.45 91,892.27
Water - Production 37,800.00 39,690.00 41,674.50 43,758.23 45,946.14
Production Tools & Supplies Expense 41,682.60 50,019.12 60,022.94 72,027.53 86,433.04
Depreciation of Production Equipment (257,782.65) (257,782.65) (257,782.65) (257,782.65) (257,782.65)
Total Manufacturing Cost 7,894,171.95 8,584,478.79 9,373,253.31 10,228,851.63 11,162,861.97
Add: Beginning Finished Good Inventory 0.00 79,441.94 422,584.05 814,577.37 1,259,684.10
Total Goods Available for Sale 7,894,171.95 8,663,920.73 9,795,837.36 11,043,429.00 12,422,546.06
Less: Ending Finished Goods Inventory 79,441.94 422,584.05 814,577.37 1,259,684.10 1,763,890.12
Cost of Goods Sold 7,814,730.01 8,241,336.68 8,981,259.99 9,783,744.90 10,658,655.94
Table 5.8. Unit cost and cost of goods sold

144
5.10 Payroll
Table 5.9 shows the computation for the payroll of ECo.s employees from
2018 to 2022. This includes: monthly and yearly salaries; Social Security System
(SSS) and Employee’s Compensation (EC), Pag-IBIG, and PhilHealth
contributions; and the computation for 13th month pay.
ECo.
Computation of Payroll (2018)
Total
Position Gross Pay SSS & EC PhilHealth Pag-IBIG W. Tax Net Pay
Deduction
General Manager 32,500.00 1,209.20 446.88 100.00 1,982.19 3,738.26 28,761.74

Production Head 26,000.00 1,209.20 357.50 100.00 700.06 2,366.76 23,633.24
Financial Head 26,000.00 1,209.20 357.50 100.00 700.06 2,366.76 23,633.24
Administrative Head 26,000.00 1,209.20 357.50 100.00 700.06 2,366.76 23,633.24
QA and QC Analyst 18,000.00 1,209.20 247.50 100.00 0.00 1,556.70 16,443.30
Cashier 16,000.00 1,209.20 220.00 100.00 0.00 1,529.20 14,470.80
Production Crew 1 9,880.00 738.16 135.85 100.00 0.00 974.01 8,905.99
Production Crew 2 9,880.00 738.16 135.85 100.00 0.00 974.01 8,905.99
Production Crew 3 9,880.00 738.16 135.85 100.00 0.00 974.01 8,905.99
Production Crew 4 9,880.00 738.16 135.85 100.00 0.00 974.01 8,905.99
General Service 9,880.00 738.16 135.85 100.00 0.00 974.01 8,905.99
MONTHLY 193,900.00 10,945.98 2,666.13 1,100.00 4,082.37 18,794.47 175,105.53
Multiply by 12 12 12 12 12 12 12
YEARLY 2,326,800.00 131,351.76 31,993.50 13,200.00 48,988.38 225,533.64 2,101,266.36

Total
Deduction
General Manager 34,125.00 1,209.20 469.22 100.00 2,302.72 4,081.14 30,043.87

Production Head 27,300.00 1,209.20 375.38 100.00 956.49 2,641.06 24,658.94
Financial Head 27,300.00 1,209.20 375.38 100.00 956.49 2,641.06 24,658.94
Administrative Head 27,300.00 1,209.20 375.38 100.00 956.49 2,641.06 24,658.94
QA and QC Analyst 18,900.00 1,209.20 259.88 100.00 0.00 1,569.08 17,330.93
Cashier 16,800.00 1,209.20 231.00 100.00 0.00 1,540.20 15,259.80
Production Crew 1 10,374.00 774.56 142.64 100.00 0.00 1,017.21 9,356.79
Production Crew 2 10,374.00 774.56 142.64 100.00 0.00 1,017.21 9,356.79
Production Crew 3 10,374.00 774.56 142.64 100.00 0.00 1,017.21 9,356.79
Production Crew 4 10,374.00 774.56 142.64 100.00 0.00 1,017.21 9,356.79
General Service 10,374.00 774.56 142.64 100.00 0.00 1,017.21 9,356.79
MONTHLY 203,595.00 11,128.02 2,799.43 1,100.00 5,172.17 20,199.62 183,395.38
Multiply by 12 12 12 12 12 12 12
YEARLY 2,443,140.00 133,536.23 33,593.18 13,200.00 62,066.06 242,395.46 2,200,744.54

145

Total
Deduction
General Manager 35,831.25 1,209.20 492.68 100.00 2,639.27 4,441.15 31,390.10

Production Head 28,665.00 1,209.20 394.14 100.00 1,225.73 2,929.08 25,735.93
Financial Head 28,665.00 1,209.20 394.14 100.00 1,225.73 2,929.08 25,735.93
Administrative Head 28,665.00 1,209.20 394.14 100.00 1,225.73 2,929.08 25,735.93
QA and QC Analyst 19,845.00 1,209.20 272.87 100.00 0.00 1,582.07 18,262.93
Cashier 17,640.00 1,209.20 242.55 100.00 0.00 1,551.75 16,088.25
Production Crew 1 10,892.70 812.79 149.77 100.00 0.00 1,062.57 9,830.13
Production Crew 2 10,892.70 812.79 149.77 100.00 0.00 1,062.57 9,830.13
Production Crew 3 10,892.70 812.79 149.77 100.00 0.00 1,062.57 9,830.13
Production Crew 4 10,892.70 812.79 149.77 100.00 0.00 1,062.57 9,830.13
General Service 10,892.70 812.79 149.77 100.00 0.00 1,062.57 9,830.13
MONTHLY 213,774.75 11,319.16 2,939.40 1,100.00 6,316.47 21,675.03 192,099.72
Multiply by 12 12 12 12 12 12 12
YEARLY 2,565,297.00 135,829.92 35,272.83 13,200.00 75,797.61 260,100.37 2,305,196.63

Total
Deduction
General Manager 37,622.81 1,209.20 517.31 100.00 3,115.82 4,942.34 32,680.47

Production Head 30,098.25 1,209.20 413.85 100.00 1,508.44 3,231.49 26,866.76
Financial Head 30,098.25 1,209.20 413.85 100.00 1,508.44 3,231.49 26,866.76
QA and QC Analyst 20,837.25 1,209.20 286.51 100.00 0.00 1,595.71 19,241.54
Cashier 18,522.00 1,209.20 254.68 100.00 0.00 1,563.88 16,958.12
Production Crew 1 11,437.34 852.93 157.26 100.00 0.00 1,110.19 10,327.14
Production Crew 2 11,437.34 852.93 157.26 100.00 0.00 1,110.19 10,327.14
Production Crew 3 11,437.34 852.93 157.26 100.00 0.00 1,110.19 10,327.14
Production Crew 4 11,437.34 852.93 157.26 100.00 0.00 1,110.19 10,327.14
General Service 11,437.34 852.93 157.26 100.00 0.00 1,110.19 10,327.14
MONTHLY 224,463.49 11,519.86 3,086.37 1,100.00 7,641.14 23,347.38 201,116.11
Multiply by 12 12 12 12 12 12 12
YEARLY 2,693,561.85 138,238.30 37,036.48 13,200.00 91,693.73 280,168.50 2,413,393.35

Total
Deduction
General Manager 39,503.95 1,209.20 543.18 100.00 3,579.64 5,432.02 34,071.93

Production Head 31,603.16 1,209.20 434.54 100.00 1,805.28 3,549.03 28,054.14
Financial Head 31,603.16 1,209.20 434.54 100.00 1,805.28 3,549.03 28,054.14
QA and QC Analyst 21,879.11 1,209.20 300.84 101.00 0.00 1,611.04 20,268.07
Cashier 19,448.10 1,209.20 267.41 100.00 0.00 1,576.61 17,871.49
Production Crew 1 12,009.20 895.08 165.13 100.00 0.00 1,160.20 10,849.00
Production Crew 2 12,009.20 895.08 165.13 100.00 0.00 1,160.20 10,849.00
Production Crew 3 12,009.20 895.08 165.13 100.00 0.00 1,160.20 10,849.00
Production Crew 4 12,009.20 895.08 165.13 100.00 0.00 1,160.20 10,849.00
146
General Service 12,009.20 895.08 165.13 100.00 0.00 1,160.20 10,849.00
MONTHLY 235,686.66 11,730.59 3,240.69 1,101.00 8,995.49 25,067.78 210,618.88
Multiply by 12 12 12 12 12 12 12
YEARLY 2,828,239.94 140,767.09 38,888.30 13,212.00 107,945.94 300,813.33 2,527,426.61
ECo.
Schedule of SSS and EC Contribution (2018)
Position Gross Pay Employer's Share Employee's Share Total
General Manager 32,500.00 1,209.20 580.80 1,790.00

Production Head 26,000.00 1,209.20 580.80 1,790.00
Financial Head 26,000.00 1,209.20 580.80 1,790.00
Administrative Head 26,000.00 1,209.20 580.80 1,790.00
QA and QC Analyst 18,000.00 1,209.20 580.80 1,790.00
Cashier 17,000.00 1,209.20 580.80 1,790.00
Production Crew 1 10,400.00 776.48 377.52 1,154.00
Production Crew 2 10,400.00 776.48 377.52 1,154.00
Production Crew 3 10,400.00 776.48 377.52 1,154.00
Production Crew 4 10,400.00 776.48 377.52 1,154.00
General Service 10,400.00 776.48 377.52 1,154.00
MONTHLY 197,500.00 11,137.60 5,372.40 16,510.00
Multiply by 12 12 12 12
YEARLY 2,370,000.00 133,651.20 64,468.80 198,120.00

General Manager 34,125.00 1,209.20 580.80 1,790.00

Production Head 27,300.00 1,209.20 580.80 1,790.00
Financial Head 27,300.00 1,209.20 580.80 1,790.00
QA and QC Analyst 18,900.00 1,209.20 580.80 1,790.00
Cashier 17,850.00 1,209.20 580.80 1,790.00
Production Crew 1 10,920.00 814.80 396.40 1,211.20
Production Crew 2 10,920.00 814.80 396.40 1,211.20
Production Crew 3 10,920.00 814.80 396.40 1,211.20
Production Crew 4 10,920.00 814.80 396.40 1,211.20
General Service 10,920.00 814.80 396.40 1,211.20
MONTHLY 207,375.00 11,329.22 5,466.78 16,796.00
YEARLY 2,488,500.00 135,950.64 65,601.36 201,552.00

General Manager 35,831.25 1,209.20 580.80 1,790.00

147
Production Head 28,665.00 1,209.20 580.80 1,790.00

Financial Head 28,665.00 1,209.20 580.80 1,790.00
QA and QC Analyst 19,845.00 1,209.20 580.80 1,790.00
Cashier 18,742.50 1,209.20 580.80 1,790.00
Production Crew 1 11,466.00 855.04 416.22 1,271.26
Production Crew 2 11,466.00 855.04 416.22 1,271.26
Production Crew 3 11,466.00 855.04 416.22 1,271.26
Production Crew 4 11,466.00 855.04 416.22 1,271.26
General Service 11,466.00 855.04 416.22 1,271.26
MONTHLY 217,743.75 11,530.42 5,565.88 17,096.30
YEARLY 2,612,925.00 138,365.05 66,790.55 205,155.60

General Manager 37,622.81 1,209.20 580.80 1,790.00

Production Head 30,098.25 1,209.20 580.80 1,790.00
Financial Head 30,098.25 1,209.20 580.80 1,790.00
QA and QC Analyst 20,837.25 1,209.20 580.80 1,790.00
Cashier 19,679.63 1,209.20 580.80 1,790.00
Production Crew 1 12,039.30 897.30 437.03 1,334.32
Production Crew 2 12,039.30 897.30 437.03 1,334.32
Production Crew 3 12,039.30 897.30 437.03 1,334.32
Production Crew 4 12,039.30 897.30 437.03 1,334.32
General Service 12,039.30 897.30 437.03 1,334.32
MONTHLY 228,630.94 11,741.68 5,669.93 17,411.62
YEARLY 2,743,571.25 140,900.18 68,039.20 208,939.38

General Manager 39,503.95 1,209.20 580.80 1,790.00

Production Head 31,603.16 1,209.20 580.80 1,790.00
Financial Head 31,603.16 1,209.20 580.80 1,790.00
QA and QC Analyst 21,879.11 1,209.20 580.80 1,790.00
Cashier 20,663.61 1,209.20 580.80 1,790.00
Production Crew 1 12,641.27 941.66 458.88 1,400.54
Production Crew 2 12,641.27 941.66 458.88 1,400.54
Production Crew 3 12,641.27 941.66 458.88 1,400.54
Production Crew 4 12,641.27 941.66 458.88 1,400.54
General Service 12,641.27 941.66 458.88 1,400.54
MONTHLY 240,062.48 11,963.51 5,779.19 17,742.70
YEARLY 2,880,749.81 143,562.07 69,350.28 212,912.35

148
ECo.
Schedule of PhilHealth Contribution (2018)
General Manager 32,500.00 446.88 446.88 893.75

Production Head 26,000.00 357.50 357.50 715.00
Financial Head 26,000.00 357.50 357.50 715.00
Administrative Head 26,000.00 357.50 357.50 715.00
QA and QC Analyst 18,000.00 247.50 247.50 495.00
Cashier 17,000.00 233.75 233.75 467.50
Production Crew 1 10,400.00 143.00 143.00 286.00
Production Crew 2 10,400.00 143.00 143.00 286.00
Production Crew 3 10,400.00 143.00 143.00 286.00
Production Crew 4 10,400.00 143.00 143.00 286.00
General Service 10,400.00 143.00 143.00 286.00
MONTHLY 197,500.00 2,715.63 2,715.63 5,431.25
YEARLY 2,370,000.00 32,587.50 32,587.50 65,175.00

General Manager 34,125.00 469.22 469.22 938.44

Production Head 27,300.00 375.38 375.38 750.75
Financial Head 27,300.00 375.38 375.38 750.75
QA and QC Analyst 18,900.00 259.88 259.88 519.75
Cashier 17,850.00 245.44 245.44 490.88
Production Crew 1 10,920.00 150.15 150.15 300.30
Production Crew 2 10,920.00 150.15 150.15 300.30
Production Crew 3 10,920.00 150.15 150.15 300.30
Production Crew 4 10,920.00 150.15 150.15 300.30
General Service 10,920.00 150.15 150.15 300.30
MONTHLY 207,375.00 2,851.41 2,851.41 5,702.81
YEARLY 2,488,500.00 34,216.88 34,216.88 68,433.75

General Manager 35,831.25 492.68 492.68 985.36

Production Head 28,665.00 394.14 394.14 788.29
Financial Head 28,665.00 394.14 394.14 788.29
QA and QC Analyst 19,845.00 272.87 272.87 545.74
Cashier 18,742.50 257.71 257.71 515.42
Production Crew 1 11,466.00 157.66 157.66 315.32
149
Production Crew 2 11,466.00 157.66 157.66 315.32

Production Crew 3 11,466.00 157.66 157.66 315.32
Production Crew 4 11,466.00 157.66 157.66 315.32
General Service 11,466.00 157.66 157.66 315.32
MONTHLY 217,743.75 2,993.98 2,993.98 5,987.95
YEARLY 2,612,925.00 35,927.72 35,927.72 71,855.44

General Manager 37,622.81 517.31 517.31 1,034.63

Production Head 30,098.25 413.85 413.85 827.70
Financial Head 30,098.25 413.85 413.85 827.70
QA and QC Analyst 20,837.25 286.51 286.51 573.02
Cashier 19,679.63 270.59 270.59 541.19
Production Crew 1 12,039.30 165.54 165.54 331.08
Production Crew 2 12,039.30 165.54 165.54 331.08
Production Crew 3 12,039.30 165.54 165.54 331.08
Production Crew 4 12,039.30 165.54 165.54 331.08
General Service 12,039.30 165.54 165.54 331.08
MONTHLY 228,630.94 3,143.68 3,143.68 6,287.35
YEARLY 2,743,571.25 37,724.10 37,724.10 75,448.21

General Manager 39,503.95 543.18 543.18 1,086.36

Production Head 31,603.16 434.54 434.54 869.09
Financial Head 31,603.16 434.54 434.54 869.09
QA and QC Analyst 21,879.11 300.84 300.84 601.68
Cashier 20,663.61 284.12 284.12 568.25
Production Crew 1 12,641.27 173.82 173.82 347.63
Production Crew 2 12,641.27 173.82 173.82 347.63
Production Crew 3 12,641.27 173.82 173.82 347.63
Production Crew 4 12,641.27 173.82 173.82 347.63
General Service 12,641.27 173.82 173.82 347.63
MONTHLY 240,062.48 3,300.86 3,300.86 6,601.72
YEARLY 2,880,749.81 39,610.31 39,610.31 79,220.62

150
ECo.
Schedule of Pag-IBIG Contribution (2018)
General Manager 32,500.00 100.00 100.00 200.00

Production Head 26,000.00 100.00 100.00 200.00
Financial Head 26,000.00 100.00 100.00 200.00
QA and QC Analyst 18,000.00 100.00 100.00 200.00
Cashier 17,000.00 100.00 100.00 200.00
Production Crew 1 10,400.00 100.00 100.00 200.00
Production Crew 2 10,400.00 100.00 100.00 200.00
Production Crew 3 10,400.00 100.00 100.00 200.00
Production Crew 4 10,400.00 100.00 100.00 200.00
General Service 10,400.00 100.00 100.00 200.00
MONTHLY 197,500.00 1,100.00 1,100.00 2,200.00
YEARLY 2,370,000.00 13,200.00 13,200.00 26,400.00

General Manager 34,125.00 100.00 100.00 200.00

Production Head 27,300.00 100.00 100.00 200.00
Financial Head 27,300.00 100.00 100.00 200.00
QA and QC Analyst 18,900.00 100.00 100.00 200.00
Cashier 17,850.00 100.00 100.00 200.00
Production Crew 1 10,920.00 100.00 100.00 200.00
Production Crew 2 10,920.00 100.00 100.00 200.00
Production Crew 3 10,920.00 100.00 100.00 200.00
Production Crew 4 10,920.00 100.00 100.00 200.00
General Service 10,920.00 100.00 100.00 200.00
MONTHLY 207,375.00 1,100.00 1,100.00 2,200.00
YEARLY 2,488,500.00 13,200.00 13,200.00 26,400.00

General Manager 35,831.25 100.00 100.00 200.00

Production Head 28,665.00 100.00 100.00 200.00
Financial Head 28,665.00 100.00 100.00 200.00
QA and QC Analyst 19,845.00 100.00 100.00 200.00
Cashier 18,742.50 100.00 100.00 200.00
Production Crew 1 11,466.00 100.00 100.00 200.00
Production Crew 2 11,466.00 100.00 100.00 200.00
Production Crew 3 11,466.00 100.00 100.00 200.00
Production Crew 4 11,466.00 100.00 100.00 200.00
151
General Service 11,466.00 100.00 100.00 200.00
MONTHLY 217,743.75 1,100.00 1,100.00 2,200.00
YEARLY 2,612,925.00 13,200.00 13,200.00 26,400.00

General Manager 37,622.81 100.00 100.00 200.00

Production Head 30,098.25 100.00 100.00 200.00
Financial Head 30,098.25 100.00 100.00 200.00
QA and QC Analyst 20,837.25 100.00 100.00 200.00
Cashier 19,679.63 100.00 100.00 200.00
Production Crew 1 12,039.30 100.00 100.00 200.00
Production Crew 2 12,039.30 100.00 100.00 200.00
Production Crew 3 12,039.30 100.00 100.00 200.00
Production Crew 4 12,039.30 100.00 100.00 200.00
General Service 12,039.30 100.00 100.00 200.00
MONTHLY 228,630.94 1,100.00 1,100.00 2,200.00
YEARLY 2,743,571.25 13,200.00 13,200.00 26,400.00

General Manager 39,503.95 100.00 100.00 200.00

Production Head 31,603.16 100.00 100.00 200.00
Financial Head 31,603.16 100.00 100.00 200.00
QA and QC Analyst 21,879.11 100.00 100.00 200.00
Cashier 20,663.61 100.00 100.00 200.00
Production Crew 1 12,641.27 100.00 100.00 200.00
Production Crew 2 12,641.27 100.00 100.00 200.00
Production Crew 3 12,641.27 100.00 100.00 200.00
Production Crew 4 12,641.27 100.00 100.00 200.00
General Service 12,641.27 100.00 100.00 200.00
MONTHLY 240,062.48 1,100.00 1,100.00 2,200.00
YEARLY 2,880,749.81 13,200.00 13,200.00 26,400.00

152
ECo.
Computation of 13th Month Pay (2018)
Position 13th Month Pay
General Manager 32,500.00

Production Head 26,000.00
Financial Head 26,000.00
Administrative Head 26,000.00
QA and QC Analyst 18,000.00
Cashier 17,000.00
Production Crew 1 10,400.00
General Service 10,400.00
TOTAL 197,500.00


Cashier 17,850.00
TOTAL 207,375.00


Cashier 18,742.50
TOTAL 217,743.75
153


Cashier 19,679.63
TOTAL 228,630.94


Cashier 20,663.61
TOTAL 240,062.48
Table 5.9. Payroll

154
5.11 Projected Sales
Table 5.10 shows the projected sales of ECo. This also includes cost of
finished goods inventory.
ECo.
PROJECTED SALES
2018 2019 2020 2021 2022
Beginning Inventory 0 54,288 57,002 59,853 62,845
Annual Production
Add: 5,428,800 5,700,240 5,985,252 6,284,515 6,598,740
Capacity
Total 5,428,800 5,754,528 6,042,254 6,344,367 6,661,585
Less: Desired Ending Inventory 54,288 57,002 59,853 62,845 65,987

Defective Goods
3,800 4,028 4,230 4,441 4,663
Allowance
Total Goods Available For Sale 5,370,712 5,693,497 5,978,172 6,277,081 6,590,935
Multiply: Selling Price/Pair 2.91 3.01 3.13 3.26 3.38
PROJECTED SALES 15,619,408.61 17,148,649.16 18,724,332.19 20,433,504.72 22,299,315.79
Note:
Desired Ending Inventory is expected to be 1% of the total inventory on hand before sales
Defective Goods is set to be 7% of total inventory on hand before sales
ECo.
COMPUTATION OF FINISHED GOODS INVENTORY
2018 2019 2020 2021 2022
Desired Ending Inventory 54,288 57,002 59,853 62,845 65,987
Multiply: Cost/Pc 1.45 1.51 1.57 1.63 1.69
Finished Goods Inventory 78,941.72 85,844.79 93,732.53 102,288.52 111,628.62
Table 5.10. Projected sales

155
5.12 Schedule of Financial Statement Accounts
Table 5.11 shows the schedule of financial statement accounts of ECo.
This includes: advertising, office supplies, production tools and supplies, and
bathroom and cleaning supplies expenses; income tax, schedule of PhilHealth,
schedule of SSS and EC, schedule of Pag-IBIG, and schedule of utilities
payables; schedule of withholding tax and accounts receivable.
ECo.
SCHEDULE OF FINANCIAL STATEMENT ACCOUNTS
Advertising Expense
2018 2019 2020 2021 2022
Advertising Cost 2,050.00 2,132.00 2,217.28 2,305.97 2,398.21
Advertising Expense 2,050.00 2,132.00 2,217.28 2,305.97 2,398.21
Note: Advertising Expense is expected to increase by 4% yearly based on the Pre-Operation Advertisement.
Office Supplies Expense
2018 2019 2020 2021 2022
OS, Beg 21,383.00 23,093.64 24,941.13 26,936.42 29,091.34

Add: OS, Purchased 17,106.40 18,474.91 19,952.90 21,549.14 23,273.07
Total OS 38,489.40 41,568.55 44,894.04 48,485.56 52,364.40
Less: OS, End 23,093.64 24,941.13 26,936.42 29,091.34 31,418.64
OS Expense 15,395.76 16,627.42 17,957.61 19,394.22 20,945.76
Note:
Office Supplies Purchased is 80% of Office Supplies Beginning.
Office Supplies End is 60% of Total Office Supplies.
156
Production Tools and Supplies Expense
2018 2019 2020 2021 2022
PT&S, Beg 23,157.00 27,788.40 33,346.08 40,015.30 48,018.36

Add: PT&S, Purchased 46,314.00 55,576.80 66,692.16 80,030.59 96,036.71
Total PT&S 69,471.00 83,365.20 100,038.24 120,045.89 144,055.07
Less: PT&S, End 27,788.40 33,346.08 40,015.30 48,018.36 57,622.03
PT&S Expense 41,682.60 50,019.12 60,022.94 72,027.53 86,433.04
Note:
Production Tools and Supplies Purchased is 200% of Production Tools and Supplies Beginning.
Production Tools and Supplies End is 40% of Total Production Tools and Supplies.
Bathroom and Cleaning Supplies Expense
2018 2019 2020 2021 2022
B&CS, Beg 2,120.00 2,544.00 3,052.80 3,663.36 4,396.03

Add: B&CS, Purchased 4,240.00 5,088.00 6,105.60 7,326.72 8,792.06
Total B&CS 6,360.00 7,632.00 9,158.40 10,990.08 13,188.10
Less: B&CS, End 2,544.00 3,052.80 3,663.36 4,396.03 5,275.24
B&CS Expense 3,816.00 4,579.20 5,495.04 6,594.05 7,912.86
Note:
Bathroom and Cleaning Supplies Purchased is 200% of Bathroom and Cleaning Supplies Beginning.
Bathroom and Cleaning Supplies End is 40% of Total Bathroom and Cleaning Supplies.
Income Tax Payable (quarterly)
Year: 2018 2019 2020 2021 2022
Income Tax Expense 1,542,912.90 1,855,864.91 2,081,374.45 2,327,900.73 2,842,646.94
Divide: By quarter 4 4 4 4 4
Income Tax Payable 385,728.23 463,966.23 520,343.61 581,975.18 710,661.74

157
Schedule of PhilHealth Payable (monthly)
Year: 2018 2019 2020 2021 2022
PhilHealth Expense 32,587.50 34,216.88 35,927.72 37,724.10 39,610.31
Divide: no. of months/year 12 12 12 12 12
PhilHealth Payable 2,715.63 2,851.41 2,993.98 3,143.68 3,300.86
Schedule of SSS and EC Payable (monthly)
Year: 2018 2019 2020 2021 2022
SSS and EC Expense 133,651.20 135,950.64 138,365.05 140,900.18 143,562.07
SSS & EC Payable 11,137.60 11,329.22 11,530.42 11,741.68 11,963.51
Schedule of Pag-IBIG Payable (monthly)
Year: 2018 2019 2020 2021 2022
Pag-IBIG Expense 13,200.00 13,200.00 13,200.00 13,200.00 13,200.00
Pag-IBIG Payable 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00
Schedule of Withholding Tax (monthly)
Year: 2018 2019 2020 2021 2022
W. Tax Expense 48,988.38 62,066.06 75,797.61 91,693.73 107,945.94
W. Tax Payable 4,082.37 5,172.17 6,316.47 7,641.14 8,995.49
Schedule of Accounts Receivable
Year: 2018 2019 2020 2021 2022
Accounts Receivable 1,561,940.86 1,714,864.92 1,872,433.22 2,043,350.47 2,229,931.58
Total Accts. Receivable 1,561,940.86 1,714,864.92 1,872,433.22 2,043,350.47 2,229,931.58

158
Note: Accounts Receivables is estimated to be 10% of Sales
Schedule of Utilities Payable (monthly)
Year: 2018 2019 2020 2021 2022
Electricity 108,000.00 113,400.00 119,070.00 125,023.50 131,274.68

Water Supply 54,000.00 56,700.00 59,535.00 62,511.75 65,637.34
Telephone and Internet 24,000.00 25,200.00 26,460.00 27,783.00 29,172.15
Utilities Expense 186,000.00 195,300.00 205,065.00 215,318.25 226,084.16
Utilities Payable 15,500.00 16,275.00 17,088.75 17,943.19 18,840.35
Table 5.11. Schedule of financial statement accounts

159
5.13 Schedule of Utilities
Table 5.12 shows the schedule of utilities used in ECo. This includes the
estimated consumption cost of electricity, water, and telephone and internet from
2018 to 2022.
ECo.
Schedule of Utilities (2018)
Monthly Cost per Area Total Cost

Utilities Production Administrative
Monthly Yearly
70% 30%
Electricity 6,300.00 2,700.00 9,000.00 108,000.00

Water Supply 3,150.00 1,350.00 4,500.00 54,000.00
Telephone and Internet 0.00 2,000.00 2,000.00 24,000.00
Total Monthly Cost 9,450.00 6,050.00 15,500.00
Total Yearly Cost 113,400.00 72,600.00 186,000.00 186,000.00

Monthly Yearly
70% 30%
Electricity 6,615.00 2,835.00 9,450.00 113,400.00

Water Supply 3,307.50 1,417.50 4,725.00 56,700.00

Monthly Yearly
70% 30%
Electricity 6,945.75 2,976.75 9,922.50 119,070.00

Water Supply 3,472.88 1,488.38 4,961.25 59,535.00

160

Monthly Yearly
70% 30%
Electricity 7,293.04 3,125.59 10,418.63 125,023.50

Water Supply 3,646.52 1,562.79 5,209.31 62,511.75

Monthly Yearly
70% 30%
Electricity 7,657.69 3,281.87 10,939.56 131,274.68

Water Supply 3,828.84 1,640.93 5,469.78 65,637.34
Table 5.12. Schedule of utilities

161
5.14 Projected Statement of Comprehensive Income
Table 5.13 shows the projected statement of comprehensive income of
ECo. This includes the sales, gross income, net income before tax, and net
income after tax.
ECo.
Projected Statement of Comprehensive Income
FOR THE YEARS ENDED DECEMBER 31
2018 2019 2020 2021 2022
Sales 15,619,408.61 17,148,649.16 18,724,332.19 20,433,504.72 22,299,315.79
Less: Cost of Goods Sold 7,814,730.01 8,241,336.68 8,981,259.99 9,783,744.90 10,658,655.94
Gross Profit 7,804,678.61 8,907,312.48 9,743,072.20 10,649,759.82 11,640,659.85
Less: Operating Expenses
Salaries Expense 2,101,266.36 2,200,744.54 2,305,196.63 2,413,393.35 2,527,426.61

SSS and EC Expense 133,651.20 135,950.64 138,365.05 140,900.18 143,562.07
Pag-IBIG Expense 13,200.00 13,200.00 13,200.00 13,200.00 13,200.00
PhilHealth Expense 32,587.50 34,216.88 35,927.72 37,724.10 39,610.31
13th Month Pay 197,500.00 207,375.00 217,743.75 228,630.94 240,062.48
Utilities Expense 186,000.00 195,300.00 205,065.00 215,318.25 226,084.16
Advertising Expense 2,050.00 2,132.00 2,217.28 2,305.97 2,398.21
Office Supplies Expense 15,395.76 16,627.42 17,957.61 19,394.22 20,945.76
Bathroom and Cleaning S.E. 3,816.00 4,579.20 5,495.04 6,594.05 7,912.86
Depreciation Expense 297,608.96 297,608.96 297,608.96 297,608.96 297,608.96
Total Operating Expenses 2,983,075.78 3,107,734.64 3,238,777.05 3,375,070.03 3,518,811.44
Net Income Before Tax 4,821,602.82 5,799,577.84 6,504,295.14 7,274,689.78 8,121,848.41

Less: Income Tax 1,542,912.90 1,855,864.91 2,081,374.45 2,327,900.73 2,842,646.94
Net Income After Tax 3,278,689.92 3,943,712.93 4,422,920.70 4,946,789.05 5,279,201.46
Table 5.13. Projected statement of comprehensive income

162
5.15 Projected Statement of Partners’ Equity
Table 5.14 shows the projected statement of partners’ equity of ECo. This
includes beginning capital, net income, withdrawals, and ending capital of
partners from 2018 to 2022.
ECo.
PROJECTED STATEMENT OF PARTNERS' EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2018
Dantes, Guevarra, J., Guevarra, A., Laxamana, Limpin, Torres,
Total
Capital Capital Capital Capital Capital Capital
Capital, Beginning 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 6,000,000

Add: Net Income 546,448 546,448 546,448 546,448 546,448 546,448 3,278,690
Total 1,546,448 1,546,448 1,546,448 1,546,448 1,546,448 1,546,448 9,278,690
Less: Withdrawals 618,579 618,579 618,579 618,579 618,579 618,579 3,711,476
Capital, Ending 927,869 927,869 927,869 927,869 927,869 927,869 5,567,214

Total
Capital, Beginning 927,869 927,869 927,869 927,869 927,869 927,869 5,567,214

Add: Net Income 657,285 657,285 657,285 657,285 657,285 657,285 3,943,713
Total 1,585,154 1,585,154 1,585,154 1,585,154 1,585,154 1,585,154 9,510,927
Capital, Ending 951,093 951,093 951,093 951,093 951,093 951,093 5,706,556

163

Total

Add: Net Income 657,285 657,285 657,285 657,285 657,285 657,285 3,943,713
Total 1,608,378 1,608,378 1,608,378 1,608,378 1,608,378 1,608,378 9,650,269
Capital, Ending 965,027 965,027 965,027 965,027 965,027 965,027 5,790,161

Total

Add: Net Income 657,285 657,285 657,285 657,285 657,285 657,285 3,943,713
Total 1,622,312 1,622,312 1,622,312 1,622,312 1,622,312 1,622,312 9,733,874
Capital, Ending 973,387 973,387 973,387 973,387 973,387 973,387 5,840,325

Total

Add: Net Income 657,285 657,285 657,285 657,285 657,285 657,285 3,943,713
Total 1,630,673 1,630,673 1,630,673 1,630,673 1,630,673 1,630,673 9,784,038
Capital, Ending 978,404 978,404 978,404 978,404 978,404 978,404 5,870,423
Note: Partners yearly withdraw 40% of the total of Beginning Capital and Net Income
Table 5.14. Projected statement of partners’ equity

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5.16 Projected Statement of Financial Position
Table 5.15 shows the projected statement of financial position of ECo.
This includes assets, liabilities, and partners’ equity.
ECo.
PROJECTED STATEMENT OF FINANCIAL POSITIONS
AS OF DECEMBER 31
2018 2019 2020 2021 2022
Assets
Current Assets
Cash 1,802,601.47 1,764,944.00 2,202,800.73 2,589,036.72 3,188,409.95

Accounts Receivable 1,561,940.86 1,714,864.92 1,872,433.22 2,043,350.47 2,229,931.58
Inventories 1,569,668.73 1,648,152.16 1,730,559.77 1,817,087.76 1,907,942.15
Office Supplies 15,395.76 16,627.42 17,957.61 19,394.22 20,945.76
Production Tools and Supplies 41,682.60 50,019.12 60,022.94 72,027.53 86,433.04
Bathroom and Cleaning Supplies 3,816.00 4,579.20 5,495.04 6,594.05 7,912.86
Total Current Assets 4,995,105.41 5,199,186.82 5,889,269.32 6,547,490.76 7,441,575.33
Non-Current Assets
Land 350,000.00 350,000.00 350,000.00 350,000.00 350,000.00

Appreciation (Land) 35,000.00 35,000.00 35,000.00 35,000.00 35,000.00
Building 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00
Accumulated Depreciation (Bldg) (50,000.00) (100,000.00) (150,000.00) (200,000.00) (250,000.00)
Production Equipment 2,655,705.03 2,655,705.03 2,655,705.03 2,655,705.03 2,655,705.03
Accumulated Depreciation (PE) (257,782.65) (515,565.31) (773,347.96) (1,031,130.62) (1,288,913.27)
Furniture and Fixtures 214,811.89 214,811.89 214,811.89 214,811.89 214,811.89
Accumulated Depreciation (F&F) (11,397.98) (22,795.97) (34,193.95) (45,591.93) (56,989.92)
Office Equipment 209,326.61 209,326.61 209,326.61 209,326.61 209,326.61
Accumulated Depreciation (OE) (10,428.33) (20,856.65) (31,284.98) (41,713.31) (52,141.63)
Delivery Equipment 180,000.00 180,000.00 180,000.00 180,000.00 180,000.00
Accumulated Depreciation (DE) (18,000.00) (36,000.00) (54,000.00) (72,000.00) (90,000.00)
Total Non-Current Assets 2,962,234.57 2,664,625.61 2,367,016.64 2,069,407.68 1,771,798.71
Total Assets 7,957,339.98 7,863,812.43 8,256,285.96 8,616,898.43 9,213,374.04

165
Liabilities
Current Liabilities
Utilities Payable 186,000.00 195,300.00 205,065.00 215,318.25 226,084.16

Pag-IBIG Payable 13,200.00 13,200.00 13,200.00 13,200.00 13,200.00
SSS and EC Payable 133,651.20 135,950.64 138,365.05 140,900.18 143,562.07
PhilHealth Payable 32,587.50 34,216.88 35,927.72 37,724.10 39,610.31
Income Tax Payable 1,542,912.90 1,855,864.91 2,081,374.45 2,327,900.73 2,842,646.94
Withholding Tax Payable 48,988.38 62,066.06 75,797.61 91,693.73 107,945.94
Total Current Liabilities 1,957,339.98 2,296,598.48 2,549,729.83 2,826,737.00 3,373,049.43
Partners' Equity
Dantes, Capital 1,000,000.00 927,868.99 951,092.69 965,026.91 973,387.44

Guevarra, A., Capital 1,000,000.00 927,868.99 951,092.69 965,026.91 973,387.44
Guevarra, J., Capital 1,000,000.00 927,868.99 951,092.69 965,026.91 973,387.44
Laxamana, Capital 1,000,000.00 927,868.99 951,092.69 965,026.91 973,387.44
Limpin, Capital 1,000,000.00 927,868.99 951,092.69 965,026.91 973,387.44
Torres, Capital 1,000,000.00 927,868.99 951,092.69 965,026.91 973,387.44
Total Partner's Equity 6,000,000.00 5,567,213.95 5,706,556.13 5,790,161.43 5,840,324.62
Total Liabilities and Partners' Equity 7,957,339.98 7,863,812.43 8,256,285.96 8,616,898.43 9,213,374.04
Table 5.15. Projected statement of financial position

166
5.17 Financial Ratio Analysis
Table 5.16 shows the financial ratio analysis of ECo. This includes current
ratio, quick ratio, total asset turnover, debt ratio, debt to equity, gross profit
margin, net profit margin, return on investment, and payback period.
ECo.
FINANCIAL RATIO ANALYSIS
2018 2019 2020 2021 2022
a.) Current Ratio Total Current Assets 4,995,105.41 5,199,186.82 5,889,269.32 6,547,490.76 7,441,575.33
= 2.55 2.26 2.31 2.32 2.21
Cash + Account
b.) Quick Ratio 3,364,542.33 3,479,808.92 4,075,233.95 4,632,387.19 5,418,341.53
Receivables
= 1.72 1.52 1.60 1.64 1.61
c.) Total Asset Turnover Sales 15,619,408.61 17,148,649.16 18,724,332.19 20,433,504.72 22,299,315.79
Total Assets 7,957,339.98 7,863,812.43 8,256,285.96 8,616,898.43 9,213,374.04
= 1.96 2.18 2.27 2.37 2.42
d.) Debt Ratio Total Liabilities 1,957,339.98 2,296,598.48 2,549,729.83 2,826,737.00 3,373,049.43
Total Assets 7,957,339.98 7,863,812.43 8,256,285.96 8,616,898.43 9,213,374.04
= 0.25 0.29 0.31 0.33 0.37
e.) Debt to Equity Total Liabilities 1,957,339.98 2,296,598.48 2,549,729.83 2,826,737.00 3,373,049.43
Total Partners' Equity 6,000,000.00 5,567,213.95 5,706,556.13 5,790,161.43 5,840,324.62
= 0.33 0.41 0.45 0.49 0.58
f.) Gross Profit Margin Gross Profit 7,804,678.61 8,907,312.48 9,743,072.20 10,649,759.82 11,640,659.85
Sales 15,619,408.61 17,148,649.16 18,724,332.19 20,433,504.72 22,299,315.79
= 0.50 0.52 0.52 0.52 0.52
g.) Net Profit Margin Net Income 3,278,689.92 3,943,712.93 4,422,920.70 4,946,789.05 5,279,201.46
Sales 15,619,408.61 17,148,649.16 18,724,332.19 20,433,504.72 22,299,315.79
= 0.21 0.23 0.24 0.24 0.24
h.) Return on Investment Net Income 3,278,689.92 3,943,712.93 4,422,920.70 4,946,789.05 5,279,201.46
Total Assets 7,957,339.98 7,863,812.43 8,256,285.96 8,616,898.43 9,213,374.04
= 0.41 0.50 0.54 0.57 0.57

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i.) Payback Period
Net Income 3,278,689.92 3,943,712.93 4,422,920.70 4,946,789.05 5,279,201.46
Add: Depreciation and Amortization 297,608.96 297,608.96 297,608.96 297,608.96 297,608.96
Annual Cash Flow 3,576,298.88 4,241,321.89 4,720,529.66 5,244,398.02 5,576,810.43
Year 0 1 2 3 4
Annual Cash Flow 3,576,298.88 4,241,321.89 4,720,529.66 5,244,398.02
Invested Cash (4,197,398.53) (621,099.65) 3,620,222.24 8,340,751.90 13,585,149.92
 0.17 -- --
Payback Period = 1.17 years
Note: The remaining invested cash in first year (Php 621,099.65) is divided by the annual cash flow
in second year (Php 4,241,321.89) to get the additional time (0.17 years) for the payback period.
Table 5.16. Financial ratio analysis

168
Conclusion
Financial study excavates the company’s major resource—money. The
context of excavation means in this study various aspects related with money or
budget for a specific project is evaluated in depth. Elements such as costs and
assets are broken down extensively and accounted in transparent manner.
Typically, a financial study is applied by fully understanding its important
facets in which costs and assets are involved. These facets include profitability,
liquidity and stability. Moreover, financial study also serves a function in the
determination of a project cost. In this context, the proponents have determined
the cost of their proposed project by recording all their fixed assets together with
their pre-operating expenses into an account. The total project cost accounted is
4,197,398.53 in Philippine peso. Additionally, in relation to this facet, is the
proponents’ proposed product pricing. Pricing involves a strategy in which it
focuses on the determination of a product’s selling price. With this, the
proponents’ pricing is derived from a cost-based approach in which total costs
are recorded and divided by the total number of output. Unit cost is then obtained
and a mark-up percentage of 200% was added to the cost and yielded Php 2.91
selling price per pair of coil for the first year. Another part of financial study is the
analysis of the business’ profitability. Profitability means the capability of the
business to generate income by growing and yielding sales. Reflecting this is the
proponents’ computed projected sales. For the year 2018, the company has
projected sales that amount to Php 15,619,408.61. Additional facet of evaluating
profitability is the determination of the length of time that a fund or investment to

169
recuperate from all its expenditures. This is called the return of investment or
payback period. With this, the proponents generated a payback period of 1.17
years or approximately one year and two months.
Taking the whole elements of financial study into account, capital
budgeting is the main function of this aspect of feasibility study. The wiser
budgeting of capital a company sustains, the higher growth it will yield.

170
CHAPTER 6
Socio-Economic Study
The study of socio-economic in a feasibility study incorporates various
aspects related to the impacts of a proposed business. These aspects include
economic contribution, social contribution, and environmental contribution (What
is Socio-Economic Study?, n.d.).
Economic contribution involves the power of the proposed business to be
an asset by generating profit and boosting the employment of a local area. It may
also refer to the reduction of something like cost. For example, selecting low cost
raw materials and yielding affordable product price for customers. Social
contribution covers the capability of a business to supply the infinite and
changing needs of the society. This involves providing basic needs, remedies in
related to health, other services and security. Another aspect of socio-economic
study is the environmental contribution which governs the capability of a
business to establish sustainable systems that will supply a contributing solution
concerning the different problems that the environment is facing.

171
6.1 Economic Contribution
ECo. is a start-up business that is set to make an impact to the
Philippine Development Plan 2017-2022 (PDP), geared towards AmBisyon 2040.
These highlight a socio-economic agenda where vision and goals for the country
are anchored (Ambisyon, 2018). Start-up businesses like ECo. play a vital role in
the development of these goals by joining the small and medium enterprises
(MSME Sector At A Glance, 2012.). Small enterprise like ECo. will have its
contribution by means of generating profit that yields income. This collects a
contribution to the country’s Gross Domestic Product (GDP). The company also
opens an opportunity for employment that will not only provide a stable but also a
comfortable life for Filipinos. This fulfills the three pillars of the development
plan—matatag, maginhawa, at panatag na buhay.
Lastly, ECo. files its contribution to the country’s plan towards economic
growth by selecting low cost raw materials which produce economical product
price for consumers. The company strongly believes that this will drive more
resilient individuals and community.
6.2 Social contribution
A stable, comfortable, and rooted life for Filipinos can only be achieved if
the society is free from danger and any harm. This means that the company shall
address and contribute a protection for the health and security of the society.
Ecoil is the main product of ECo. which supplies a solution concerning the risk of
mosquito bites that have been continually harming the health of the society. Part
172
of the main contribution of the company to the society is by means of producing a
product that protects the society from mosquitoe-borne diseases. Moreover, as
stated from the previous chapter, Ecoil is made from non-toxic raw materials to
secure the society’s health. Another contribution of ECo. to the society involves a
marketing plan that is set to meet the demand or needs of the society.
6.3 Environmental contribution
Ecological integrity is one of the major premises of the PDP which highlights
the provision of long term environmental action plan. Thus, the company’s priority
does not only involve meeting society’s needs but also giving an aid to different
problems that the environment faces. As stated, Ecoil’s base material is made of
calamansi peels that are usually thrown into waste. ECo. has made sure that the
main raw material in producing their product will highlight the solid waste
reduction campaign. The company will also develop and introduce a system that
each and every one is encourage to cooperate. The system will involve proper
segregation and recycling. In this way, waste management is more convenient
and safer.
173
Conclusion
This chapter is the last component of a feasibility study. After studying
the target market, materials requirement, labor, and financial aspect, an analysis
on how beneficial the proposed business and product in various aspects is
discussed. This is called the socioeconomic study. In this study, the analysis is
subdivided into three components—economical contribution, social contribution
and environmental contribution.
In economical contribution, the proposed business of the proponents is
set to make an impact to the country’s Gross Domestic Product (GDP) which
supports the Philippine Development Plan (PDP) towards economic growth.
Furthermore, by opening an employment opportunity the business is set to
secure a better livelihood status among Filipinos. With social contribution, the
company has made sure that their proposed product is safe and will protect the
society’s health. For the environment contribution of the company, as stated from
the previous chapters, the product that will be produced by the proponents is
made of solid waste material. This is to give way to the campaign that the
company would like to highlight. The campaign is termed solid waste reduction
which accompanies contributing factors that will aid the problems that the
environment is facing.
174
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APPENDICES
Appendix A
Market Survey Questionnaire
DON HONORIO VENTURA TECHNOLOGICAL STATE UNIVERSITY
Bacolor, Pampanga
MARKET SURVEY QUESTIONNAIRE
Age: ____ Occupation: __________
Gender: Male Female
1. Do you use mosquito coils as mosquito repellent at home?
Yes No
2. If yes, what brand of mosquito coil do you use?
Baygon Lion-Tiger ________ others (please specify)
3. How often do you buy mosquito coils?
Daily Weekly Monthly ________ others (please specify)
4. How much do you usually spend for a piece of mosquito coil?
P1 to P5 P6 to P10 P11 to P15 P16 and above
5. Are you willing to use a mosquito repellent coil made from citrus fruit
peels like lemon, orange, and calamansi?
Yes No
182
Appendix B

PFS 2018 Group No. 5 Citric Mosquito Repellent Coil V.2.0 PDF

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Republic of the Philippines

DON HONORIO VENTURA TECHNOLOGICAL STATE UNIVERSITY

College of Engineering and Architecture

CITRIC MOSQUITO-REPELLENT COIL

A Project Feasibility Study

In Partial Fulfillment of the

The project feasibility study entitled Citric Mosquito-Repellent Coil prepared

and submitted by Eric A. Dantes, Arldhail S. Guevarra, Jayson Noel E.

Guevarra, Hezel Grace C. Laxamana, Zairrah K. Limpin, and Jerome

Christian A. Torres in partial fulfillment of the requirements for the degree of

Bachelor of Science in Industrial Engineering has been examined and is

recommended for acceptance and approval for oral examination.

Engr. Nicole L. Lumod Engr. Julius M. Velasco, MM

Approved by the committee on oral examination with a grade of _____ on

Engr. Dave Paulo C. Pangilinan Engr. Khimpoy Y. Pamintuan

Accepted in partial fulfillment of the requirements for the degree of Bachelor of

Engr. Anna Liza C. Nacion, MBA

Engr. Jun P. Flores. PECE, MEP-EE

cooperation of the following:

proponents and for giving them wisdom in doing this study;

encouraged the proponents all throughout the study; and

completion of this study.

Together, the proponents sincerely acknowledge and give thanks to the

Solid waste management is a term that is used to refer to the process of

ECo. is a start-up business partnership of six people. The business

specializes in chemical-free mosquito coil, under the product name Ecoil. As a

mosquito-repellent coil provides hours of protection against unwanted mosquito

bites. ECo.’s target market is the household population of Guagua, Pampanga—

furniture and fixtures. A discussion of finances—particularly Ecoil’s selling price

it provides its beneficial product to the society.

knowledge from different Industrial Engineering principles.

List of Figures............................................................................................. vii

CHAPTER 1: Project Background and History ................................................................. 1

1.1 History of Insect Repellent .................................................................... 2

1.2 Facts about Calamansi Peel................................................................. 4

1.3 Facts about Candle Wax ...................................................................... 4

1.4 Facts about Starch ................................................................................ 5

1.5 Facts about Isopropyl Alcohol ............................................................. 5

1.6 Facts about Citronella Oil ..................................................................... 5

1.7 Proposed Name of the Product ............................................................ 7

1.8 Proposed Company Name ................................................................... 8

1.9 Proposed Location of the Company ..................................................... 9

CHAPTER 2: Organization and Management Study ...................................................... 10

2.1 Vision, Mission, and Objectives .......................................................... 10

2.1.1. Vision .................................................................................. 10

2.1.2. Mission ................................................................................ 10

2.1.3. Objectives ........................................................................... 10

2.2 Proposed Form of Business ............................................................... 11

2.3 Advantages of Partnership ................................................................. 11

2.4 Type of Organizational Structure ........................................................ 12

2.4.1 Organizational Chart ............................................................ 12

2.6 Job Description and Specifications .................................................... 14

2.6.1 General Manager ................................................................. 15

2.6.3 Finance Head....................................................................... 17

2.6.4 Administrative Head............................................................. 18

2.6.5 Quality Assurance and Quality Control Analyst .................. 19

2.6.6 Cashier ................................................................................. 20

2.6.7 Production Crew .................................................................. 21

2.6.8 General Service Crew ......................................................... 22

2.7 Manpower Requirements ................................................................... 23

2.8 Compensation Scheme and Benefits ................................................. 24

2.8.1 Financial benefits ................................................................. 24

2.8.1.A 13th month pay..................................................... 24