TECHNICAL

STUDY
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SERVICE SPECIFICATION AND COMPOSITION

The Internet is a globally connected network system that uses TCP/IP to

transmit data via various types of media. It is a network of global exchanges –

including private, public, business, academic and government networks –

connected by guided, wireless and fiber-optic technologies. It is a channel that

enables its users to connect to various platforms, the most common being the

World Wide Web.

The World Wide Web (www) on the other hand, is the combination of all

resources and users on the Internet that are using Hypertext Transfer Protocol. It

is the universe of network-accessible information, an embodiment of human

knowledge. Through the www, individuals can access a huge pool of information

faster and easier compared to the traditional means of gathering data. However,

in order to access the www, a person must first have access to a physical

connection. These include Dial-up, 3G, Broadband, Asymmetric Digital

Subscriber Line, and perhaps the option that provides the most ease, Wi-Fi

Connection.

Wi-Fi is the name of the popular wireless networking technology that uses

radio waves to provide wireless high speed Internet and network connections. A

small device known as a wireless transmitter or hub receives information from

the Internet via your Internet Service Provider. The hub then converts this

information into radio waves and emits it, creating a small, local area around

itself, within which devices such as laptops, cellphones and PCs can receive

these signals given the correct kind of wireless adapter thus enabling one to
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connect to the internet. This is the trend of today as its users will only need to

setup the network via their devices without having to deal with cables and wires.

This gives them the freedom to do whatever they want, wherever they want (so

long as they are in the vicinity of the connection) while connected to the internet.

Meanwhile, a tutorial is a teaching session given to one student or a small

group of students aiming to enhance their academic performance by honing and

improving their knowledge and skills. Tutorial sessions are a big help to students

who are having trouble keeping up to pace with their lessons and activities.

Think Premiere mainly consists of Wi-Fi and tutorial services, printing

services and snacks. It is a lounge in the main building of Sorsogon National

High School which aims to give students a place to do academic and social

activities. It will have a theme similar to a café – there will be a stall which

customers will be able to avail the services and an area consisting of tables and

chairs where they will stay.

Although there are already Wi-Fi spots as well as Tutorial Centers in

Sorsogon City, SNHS has never witnessed and experience such a business.

Common businesses in the school are those engaged in food and school

supplies. Thus, by introducing Think Premiere, the proponents believe that it

would be a huge opportunity for the business as well as SNHS.

SERVICE PROCESS

Prepare and setup the stall and the customer’s area. This includes the

arrangement of chairs and table, the building of the stall, the establishment of
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Wi-Fi connections, the installation of a printer, extension wires and bond papers,

the preparation of food equipment such as a Siomai Steamer, and the like. After

preparing, these equipment will then be checked thoroughly in order to ensure

that they function properly. Chairs and tables will be examined for possible

damages. The same process will be observed for the stall. Wi-Fi connections will

be tested if they function properly and effectively. The ink levels of the printer will

be checked in order to ensure quality printing. Extension wires will be tested in

order to prevent ground or electrocution. Bond papers will be monitored to

confirm that there is still a decent amount. Food equipment will be verified to

know whether they function appropriately or not. Once finished, the stall will open

for operations and customers will be welcomed to the business. Customers who

wish to avail the services will be required to pay at the stall. This process will run

for 10 hours per day for five months.

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FIGURE 3

SERVICE PROCESS

1 
prepare and setup the stall SERVICE
and the customer’s area thorough
inspection 2 PROCESS

arranging table & chairs

building the stall
establishing Wi-Fi connections
installing a printer, extension
wires & bond papers
preparing food equipment
(e.g. shumai steamer, etc.)
3  function properly
regular
inspection
checking stall, table & chairs for
possible damages
testing Wi-Fi connections if they
function
checking printer ink levels, testing
extension wires to avoid
electrocution, & monitoring
amount of bond papers
verifying food equipment if they

open for business

welcoming customers customers who wish to repeat for 8

avail services will be hours a day
required to pay at the for 5
stall months
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PRODUCTION VOLUME AND SCHEDULE

Think Premiere’s working hours will start at 8:00 in the morning until 6:00

in the evening. This schedule will be observed during weekdays. Meanwhile,

weekends will be allotted for rest and rejuvenation. It is expected that there will

be an average of 2 customers per hour, thus resulting into 20 customers in a

day’s operation. The business is expected to cater to at least 4,800 customers in

its first year and will annually increase by 10% for the succeeding years. Table 5

shows the Projected Volume of the Product.

TABLE 5

PROJECTED VOLUME OF THE PRODUCT

Year Customers/ Customers/ Customers/ Customers/

Day Week Month Year
2019 20 100 400 4,800
2020 22 110 440 5,280
2021 24 120 480 5,760
2022 27 135 540 6,480
2023 29 145 580 6,960

As shown in the table, the number of customers catered to per year

increases by 10%. This can be attributed to a number of factors. However, brand

expansion and promotions are the main reasons of this surge. Due to this, the

number of customers per day of Think Premiere increases by a small number

which in turn increases the overall customers served in a year.

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RAW MATERIALS AND SOURCES

Considering the abundance of stores in Sorsogon City, the proponents will

have no problem purchasing the raw materials needed for the business’

operations. For the flagship service, the materials that will be needed will be

purchased every third Friday of the month. Meanwhile the materials required for

snacks will be purchased weekly. These materials may be bought at supermarket

stores such as Savemore, LCC and Lucky as well as in the public market

TABLE 6
SCHEDULE OF PURCHASING (PRINTING)

Materials Purchased Location Time of Purchasing

Bond Paper Sorsogon City, Sorsogon Monthly
Ink Sorsogon City, Sorsogon Monthly

The identified materials needed to run printing services are bond paper

and ink. These items will be purchased in bulk amounts as they do not rot unlike

edible items. Hence, the proponents will only restock on these materials once per

month to minimize transportation cost. Furthermore, the proponents will purchase

these from local stores such as Lucky and Denver.

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TABLE 7

SCHEDULE OF PURCHASING (SNACKS)

Materials Purchased Location Time of Purchasing

Ground Pork Sorsogon City, Sorsogon Weekly
Molo/ Wonton Wrapper Sorsogon City, Sorsogon Weekly
Jicama (Singkamas) Sorsogon City, Sorsogon Weekly
Garlic (minced) Sorsogon City, Sorsogon Weekly
Onion (minced) Sorsogon City, Sorsogon Weekly
Cooking Oil Sorsogon City, Sorsogon Weekly
Ground Black Pepper Sorsogon City, Sorsogon Weekly
Salt Sorsogon City, Sorsogon Weekly
Knorr cubes (pork) Sorsogon City, Sorsogon Weekly
Soy Sauce Sorsogon City, Sorsogon Weekly
Calamansi Sorsogon City, Sorsogon Weekly
Sugar Sorsogon City, Sorsogon Weekly
Red Chili Sorsogon City, Sorsogon Weekly
Garlic (chopped finely) Sorsogon City, Sorsogon Weekly
Green Chili Sorsogon City, Sorsogon Weekly
Cheese Sorsogon City, Sorsogon Weekly
Lumpia wrapper Sorsogon City, Sorsogon Weekly
Mayonnaise Sorsogon City, Sorsogon Weekly
Ketchup Sorsogon City, Sorsogon Weekly
SM Bonus Fries Sorsogon City, Sorsogon Weekly
Cheese Powder Sorsogon City, Sorsogon Weekly

The raw materials required for snacks were identified based on the three

snacks the business will offer: French fries, dynamite and siomai. These

ingredients will be purchased on a weekly basis to avoid spoilage. Moreover, the

proponents will also purchase from local department stores and markets such as

LCC, Savemore and the public market.

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RAW MATERIALS REQUIREMENT

Bond paper and ink will be the main materials needed to run printing

services. These will be purchased in bulk amounts in order to lessen the costs in

comparison to single purchase (tingi). Lucky will be the main supplier of bond

paper and the ink will be from Denver. As for the snacks, the raw materials may

be purchased from Savemore, LCC, and the public market depending on who

offers the cheapest price in order to lessen the expenses. Table 8 and 9 show

the Raw Materials Requirement.

FIGURE 4

PICTURE OF RAW MATERIALS (PRINTING)

Bond Paper Ink

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FIGURE 5
PICTURE OF RAW MATERIAS FOR SUBSIDY PRODUCTS (SNACKS)
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TABLE 8

Daily
Raw Unit Total
Materials Quantity Cost Cost Weekly Monthly Yearly
Bond
Paper
(Short) 1 Ream ₱250.00 ₱250.00 ₱62.50 ₱250.00 ₱3,000.00
Bond
Paper
(Long) 1 Ream 250 250 62.50 250 3,000.00
4
Ink cartridges 250 1,000 250
1,000.00 12,000.00
₱1500.0
Total     ₱1500.00 ₱375.00 0 ₱18,000.00
RAW MATERIALS REQUIREMENT (PRINTING SERVICES)

The table shows the amounts and prices of the raw materials needed for

printing services. For bond papers, both long and short, the proponents identified

that one ream per month is enough to run printing services. This will cost them

₱250.00 per month and ₱3,000.00 per year. Meanwhile, 4 ink cartridges will be

purchased per month, 1 ink cartridge per color. This will cost the proponents

₱1,000.00 monthly and ₱12,000 annually. In total, the raw materials needed for

printing services amounted to ₱18,000.00.

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TABLE 9
RAW MATERIALS REQUIREMENTS (SNACKS)

Raw Materials Quantity Daily Weekly Monthly Yearl

Unit Cost Total
Cost
Ground Pork 2kls ₱185.00/kilo ₱370.00 ₱1,850.00 ₱7,400 ₱88,80
Molo/ Wonton 4 packs 32.00/pack 128.00 640.00 2,560.00 30,720.
Wrapper
Jicama 1 kl 45.00/kl 90.00 450.00 1,800.00 21,600.
(Singkamas)
Garlic (minced) 1 bulk 5.00/bulk 5.00 25.00 100.00 1,200.0
Onion 1 6.00/pc 6.00 30.00 120.00 1,440.0
(minced) medium
Cooking Oil 2 bottles 20/bottle 40.00 200.00 800.00 9,600.0
Ground Black 2 sachets 1.00/sachet 2.00 10.00 40.00 480.0
Pepper
Salt 1 tsp 20.00/kl 2.00 10.00 40.00 480.0
Knorr cubes 2 pcs. 6.00/cube 12.00 60.00 240.00 2,880.0
(pork)
Soy Sauce 2 pouch 11.00/pouch 22.00 110.00 440.00 5,280.0
Calamansi ¼ kl 30.00/kl 7.50 37.50 150.00 1,800.0
Sugar ¼ tsp 38.00/ kl 9.50 47.50 190.00 2,280.0
Red Chili ½ kl 20.00/kl 10.00 50.00 200.00 2,400.0
Garlic 3 bulk 5.00/bulk 15.00 75.00 300.00 3,600.0
Green Chili 1 kl 30.00/kl 30.00 150.00 600.00 7,200.0
Cheese 1 bar 50.00/bar 50.00 250.00 1,000.00 12,000.
Lumpia 50 pcs 25.00/ 50pcs 25.00 125.00 500.00 6,000.0
wrapper
Mayonnaise 1 pouch 50.00/pouch 50.00 250.00 1,000.00 12,000.
Ketchup 1 sachet 5.00/sachet 5.00 25.00 100.00 1,200.0

SM Bonus 3kls 160.00/kl 480.00 2,400.00 9,600.00 115,200

Fries
Cheese 1 pouch 25.00/pouch 25.00 125.00 500.00 6,000.0
Powder
Total ₱1014.00 ₱5,070.00 ₱20,280.00 ₱243,360

The snacks – siomai, French fries and dynamite spring roll (Lumpia) will

be presented on a paper plate with toothpicks as the utensils. In order to make

the products attractive, it will be garnished using their sauces – ketchup,

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mayonnaise, etc. Furthermore, a label will be placed on the side of the paper

plate to improve the overall appearance of the snacks. Table 10 shows the

Packaging Materials of the product.

TABLE 10

PACKAGING MATERIALS REQUIREMENT (SNACKS)

Daily Monthly Yearly

Particulars Unit Volume Cost Volume Cost Volume Cost
Paper
25/pack 3 packs 75 60 1,500.00 720 18,000.00
Food Tray
20.00/
Toothpick 2 packs 40 40 800 480 9,600.00
pack
1200 14,400
Label 2.00/pc 75 pcs 150 pcs 2,400.00 pcs 28,800.00
Total     ₱265.00   ₱4,700.00   ₱56,400

The table shows the amount and prices of the packaging materials for

snacks. Three packs of paper food trays will be utilized per day which accounts

for ₱25.00 each, thus costing the company ₱75.00 per day. This will amount to

₱18,000.00 per year. For toothpicks, the proponents identified that two packs per

day should be enough to shoulder the customers. This costs ₱20.00 per pack

which accounts the company for ₱40.00 daily. Thus, on a yearly basis,

₱9,600.00 will be allotted for toothpicks. Finally, the company identified that there

should be 75 pieces of label per day. Since a label costs ₱2.00 per piece, the

company will invest ₱150.00 daily on labels. This will total to ₱28,800.00 per

year. These packaging materials when summed up totaled to ₱56,400.00.

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EQUIPMENT, TOOLS AND UTENSILS

The primary needs in the working process of this proposed business are

the equipment, furniture and fixture, and housekeeping and production supplies.

These equipment have varying uses which will be vital for the business’ success.

Table 11 shows the Equipment to be used in this undertaking, its cost and

useful life. These will be purchased at local department stores and supermarkets.

TABLE 11

EQUIPMENT

Particulars Unit Unit Cost Total Cost Useful Depreciation

Life
Wi-Fi Modem 2 Php 2,000.00 Php 4,000.00 4 years Php 800.00
3-in-1 Printer 2 Php 5,500.00 Php 11,000.00 4 years Php 2,200.00
Extension Wire 2 Php 250.00 Php 500.00 20 years
Laptop 1 Php 16,000.00 Php 16,000.00 4 years Php. 6,400.00
Total Php 31,500.00 Php. 9,400.00

The following table, table 12, shows the Furniture and Fixtures which will

be used in the proposed business. It is composed of chairs, tables and benches

which will encompass the lounge, to be purchased at Doctama’s Marketing.

TABLE 12

FURNITURE AND FIXTURES

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Particulars Unit Unit Cost Total Cost Useful Depreciation

Life
Tables 3 Php 1,500.00 Php 4,500.00 5 years Php 900.00
Chairs 12 Php 800.00 Php 9,600.00 5 years Php 1,920.00
Bench 4 Php 2,000.00 Php 8,000.00 5 years Php 1,600.00
Total Php 22,100.00 Php. 4,420.00

Corollary, table 13 shows Housekeeping and Production Supplies. These

are the needed supplies before, during and after business operation. These will

be purchased at local department stores, supermarkets and the public market.

TABLE 13

HOUSEKEEPING AND PRODUCTION

Particulars Unit Unit Cost Total Cost Duration Monthly Yearly Cost
(Months) Cost
Trash Can 3 Php 100.00 Php 300.00 12 Php 25.00 Php 300.00
Soft Broom 2 Php 60.00 Php 120.00 6 Php 20.00 Php 240.00
Hard Broom 2 Php 10.00 Php 20.00 3 Php 7.00 Php 80.00
Dust Pan 2 Php 50.00 Php 100.00 6 Php 17.00 Php 200.00
Floor Mop 2 Php 210.00 Php 420.00 12 Php 35.00 Php 420.00
Total Php 960.00 Php 104.00 Php 1240.00

PRODUCTION MANPOWER REQUIREMENT

This refers to various jobs and functions necessary and the

corresponding costs to render a certain service. In order to achieve company

goals and objectives, there is a need to employ workers as well as to establish

hierarchy in the business. The following table shows the manpower that will be

utilized by the business.

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TABLE 14

PRODUCTION MANPOWER REQUIREMENT

No. Compensation

Manpower Required Rate/Day Monthly Yearly

Tutor 4 Php 150.00 Php 12,000.00 Php 144,000.00
Cook 2 150.00 6,000.00 72,000.00
Total Php 18,000.00 Php 216,000.00

PLANT LAYOUT AND LOCATION

Plant location refers to the site where a project is to be situated. A proper

location is essential to a successful business. The proper location takes into

consideration several factors. These include population, accessibility, and the

market.

For the proposed business, the proponents identified the main building of

Sorsogon National High School as the business’ proper location. Considering the

atmosphere and condition of the proposed business, it is necessary to establish it

in a place not too crowded. This is to minimize the noise as well as the

temperature. Also bearing in mind the utilities such as electricity and water, the

main building of SNHS is the most appropriate location for the proposed

business as all of these are present in the said venue.

FIGURE 6

PLANT LOCATION
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STALL
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FIGURE 7

PLANT LAYOUT AND FLOOR PLAN

Open view Front

Open view Back

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Open view Right

Open view Left

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F
LOOR PLAN
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BUILDING FACILITIES

The vacant space in front of the main building – in particular its balcony,

will serve as the venue of the business. It will rent this space instead of

constructing its own. This is to cut the expenses of the business. The proponents

will pay a rent expense worth ₱5,000.00, excluding utilities.

FIGURE 8

PICTURE OF THE BALCONY OF SORSOGON NATIONAL HIGH SCHOOL

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UTILITIES REQUIREMENT

Electricity is significant in the business. It allows a business to operate

continuously without any interruptions. This holds especially true to a business

that revolves around providing a comfortable workplace with proper ventilation

and Wi-Fi services. With that aside, the electricity that will be utilized by the

proposed business will branch out from SNHS’ supply in order to lessen hassle

and difficulties. The proposed business will pay the school for its consumption of

electricity which will be shown in the following table.

TABLE 15

ELECTRICAL CONSUMPTION

Equipmen Quantity Wattage Hours Cost/Day Cost/Mont Cost/Year

t Used/Day h
Stand Fan 2 65 10 Php 12.64 Php 252.80 Php 3,033.60
Printer 2 30 10 5.84 116.80 1,401.60
Modem 2 6 10 1.17 23.40 280.80
Laptop 1 40 10 3.89 77.80 933.60
Total Php 23.54 Php 470.80 Php 5,649.60

Water is also a utility to be considered in the operations of the business.

That being said, the proponents determined that it is necessary to also order

water from refilling stations considering that the water supply in SNHS is

sometimes insufficient. This will make sure that the business will always be ready

with water especially when there is shortage. The proponents allocated Php

150.00 for the monthly water bill.

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Considering that the business will provide Wi-Fi services along with

tutorial services, the telecommunications fee will also be accounted by the

business which also falls under its utilities. The proposed business will avail two

Wi-Fi’s, from Globe and from PLDT. This is to ensure that there will be internet

connection at all times. Furthermore, the proponents will avail their promos, both

accounting to Php 1,899.00 which provides 20-25 mbps and unlimited surfing.

The following table shows the Utilities Requirement of Think Premiere.

TABLE 16

UTILITIES REQUIREMENT

Utilities Consumption per Annual Cost

Month
Electricity Php 470.80 Php 5,649.60
Water 150.00 1,800.00
Telecommunication 3,800.00 45,600.00
(Wi-Fi)
Total Php 4,420.80 Php 53,049.60

QUALITY CONTROL AND STRATEGY

In order to ensure and maintain a good reputation for the business, the

proponents must be responsible in ensuring and maintaining cleanliness,

orderliness and stability among customers as well as with themselves.

The proponents will observe daily general cleaning before and after

operation hours. This will make sure that customers will feel comfortable and at

ease when they avail the service. Inspection and testing of equipment shall also

be observed in order to prevent unwanted complaints from customers.

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Meanwhile for food production, the raw materials will be kept in a proper

and safe place to avoid rotting and spoilage. These will be inspected along with

the cooking equipment before production in order to ensure that there are no

defected materials and equipment that may lead to untoward accidents.

WASTE DISPOSAL SCHEME

It is a systematic way of disposing wastes, unused materials and proper

maintenance of the site to avoid hazard that may cause accident or

contamination of products. In the production (snacks) section, all wastes will be

eliminated and separated into their corresponding categories – biodegradable

wastes, non-biodegradable wastes and recyclable wastes. The non-recyclable

wastes will then be collected by the garbage men and the recyclable wastes will

be sold to a recyclable materials merchandise for additional profit.

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UNIT
PRODUCTION
COST
(Printing and Tutorial Service)

(1 Month)
Direct Materials 1,500.00
Add: Freight-In 150.00
Direct Labor 9,000.00
Packaging Materials 0 10,650
Add: Administrative and Operating Expense
Utilities 620.80
Fringe Benefits 2,760.00
Transportation Expense 200.00
Promotional Expense 1,000.00
Communication Expense 500.00
Housekeeping & Production Supplies 104.00
Rent Expense 1,250.00
Office Equipment 2,625.00
Administrative Salary 16,000.00 25,059.80
Total Production Cost 35,709.80
Divide: Monthly Production 500
Unit Selling Price 71.42
Add: Mark-Up (25%) 17.86
Selling Price 89.28

Since two services are involved here, the proponents decided to price

tutorial services at Php 75.00. This was computed by dividing the total selling

price by two due to the number of services and simply adding 25% to the result.

Since the end result only needed P2.00 to be a multiple of 5, the proponents

decided to add P2.00 to make giving change easier on the part of the cashiers.

Meanwhile for printing services, the proponents decided to charge P1.00 for

black and white and P5.00 for colored pages. For photocopying, those who wish

to photocopy short bond papers will be charged P1.00. On the other hand, P1.50
 47

will be charged for long bond papers. For those who wish to scan something,

P10 will be the fee per scan.

UNIT
PRODUCTION
COST
(Snacks)

(1 Month)
Direct Materials 20,280.00
Add: Freight-In 150.00
Direct Labor 9,000.00
Packaging Materials 4,700 34,130.00
Add: Administrative and Operating Expense
Utilities 620.80
Fringe Benefits 2,760.00
Transportation Expense 200.00
Promotional Expense 1,000.00
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Communication Expense 500.00

Housekeeping & Production Supplies 104.00
Rent Expense 1,250.00
Office Equipment 2,625.00
Administrative Salary 16,000.00 25,059.80
Total Production Cost 59,189.80
Divide: Monthly Production 2067
Unit Selling Price 28.64
Add: Mark-Up (25%) 7.16
Selling Price 35.8

Since three dishes are to be served as snacks here, the proponents

decided to sell these items in prices ranging from P15.00-P20.00. This was

computed by dividing the total selling price by 3 due to the number of services.

Considering that the dishes have varying degrees of difficulties, the proponents

decided to add a little amount to the result in order to compensate for their

efforts.
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UNIT
PRODUCTION
COST
(Wi-Fi)

(1 Month)
Direct Materials 333.33
Add: Expenses
Utilities 3,800.00
Total Production Cost 4,133.00
Divide: Monthly Production 400
Unit Selling Price 10.33
Add: Mark-Up (25%) 2.58
Selling Price 12.91