BOTEPON MANUFACTURING COMPANY

CHAPTER II

MANAGEMENT ASPECTS

I. Name of Business

Botepon Manufacturing Company shall be the name of the firm. The Company name was

derived from the Filipino words “bote” and “ipon” which mean bottle and earn. The name of the

Company was initially suggested by Rizzvill Espina, one of the partners and also immediately

agreed by the others. The researchers of the study shall also be the owners of the business,

namely, Mr. Ricmar Jonick Agtarap, Mrs. Lucky Venus Collado, Mr. Rizzvill Espina, Ms.

Glyndiel Felicitas, Ms. Valen Lou Lilan and Ms. Maria Adelina Sagun.

II. Organizational Structure

The Company shall be a general partnership. Each member shall contribute money,

property, or industry according to their agreements with the intention of dividing the profits and

losses in conformity to their agreements as expressly stated in the Articles of Partnership. The

partners shall be a general partner in which they are liable up to the extent of his/ her property.
 BOTEPON MANUFACTURING COMPANY

PARTNERS

GENERAL MANAGER

PRODUCTION
& OPERATIONS
ACCOUNTANT
MANAGER

CASHIER SALES OFFICER

LABORERS
SALES PERSONNEL

Figure 1: Organizational Chart

In the start of business, the company shall have their human resources. The General

Manager shall be responsible for the overall operation of the business and the partners agreed to

appoint Mr. Rizzvill Espina for that position. He shall be the one responsible for formulating

business policies and operating procedures as well the implementation of strategic plans and

setting goals and objectives of the business.

The Production Department shall be headed by Ms. Glyndiel Felicitas and Mrs. Lucky

Venus Collado, two of the partners that will serve as the production managers of the firm. As the

production manager they shall be responsible in overlooking the manufacturing process. Making
 BOTEPON MANUFACTURING COMPANY

sure that the production is running effectively and efficiently as planned. The production

department manufactures goods for the business which are then sold in order to bring revenue for

the business. Under this department manpower resources shall be fully needed.

The administrative department shall be composed of an accountant. This position will be

occupied by the partner, Ms. Valen Lou B. Lilan and the accountant performs financial functions

related to the collection, accuracy, recording, analysis and presentation of a business,

organization or company's financial operations.

The position of Cashier shall be held by Ms. Maria Adelina Sagun. As cashier she shall

be responsible of the handling of cash and disbursement of funds needed for the business.

The position of sales officer shall be occupied by the partner, Mr. Ricmar Jonick

Agtarap. Under him are two sales personnel which will be hired on the fifth year of operations

to compensate for the increasing sales.

III. Duties, Responsibilities and Qualifications

A. The General Manager

The Major responsibilities of a General Manager are as follows:

 Implements rules and regulations of the business

 Oversees the administrative functions in the business

 Provides manufacturing information by compiling, initiating, sorting, and analyzing

production performance records and data; answering questions and responding to

requests.
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 Creates and revises systems and procedures by analyzing operating practices, record-

keeping systems, forms of control, and budgetary and personnel requirements;

implementing change.

The Specific Duties of a General Manager are stated below:

 Carries out meetings with the department heads

 Preparing and signing of contracts and agreements entered by the firm

 Maintains working relationship with the union by following the terms of the collective

bargaining agreement.

 Resolves personnel problems by analyzing data; investigating issues; identifying

solutions; recommending action.

 Maintains safe and clean work environment by educating and directing personnel on the

use of all control points, equipment, and resources; maintaining compliance with

established policies and procedures.

 Maintains professional and technical knowledge by attending educational workshops;

reviewing professional publications; establishing personal networks; benchmarking state-

of-the-art practices; participating in professional societies.

B. The Accountant

The Major responsibilities of an Accountant are as follows:

 Perform financial analysis and reporting to management as needed.

 Perform month-end accounting activities such as reconciliations and journal entries.

 Coordinate with finance team to complete assigned accounting tasks within deadlines.
 BOTEPON MANUFACTURING COMPANY

 Evaluate computerized accounting systems and provide recommendations to IT team for

performance improvements.

 Generate financial reports and statements to Managers for review.

 Analyze financial discrepancies and recommend effective resolutions.

The Specific Duties of an Accountant are stated below:

 Monitor expenditures, analyze revenues and determine budget variances and report the

same to management.

 Monitor and record financial transactions according to company policies and regulations.

 Review and recommend changes to existing accounting procedures.

 Respond to accounting inquiries from management in a timely fashion.

 Assist in auditing activities by providing necessary information and preparing requested

documentations.

C. Production Manager

The Major responsibilities of an Office Clerk are as follows:

 Organize workflow by assigning responsibilities and preparing schedules

 Check production output according to specifications

 Ensure the safe use of equipment and schedule regular maintenance

The Specific Duties of a Production Manager are stated below:

 Submit reports on performance and progress

 Identify issues in efficiency and suggest improvements

 BOTEPON MANUFACTURING COMPANY

 Train new employees on how to safely use machinery and follow procedures

 Enforce strict safety guidelines and company standards

D. Sales Personnel

Duties and responsibilities

 To sell products, goods or services to the customers as per their demand or specification.

 Responsible for having a thorough knowledge of each item present in the store and must

try to sell it to as many people as possible.

 Sales personnel also looks after the cashier duties such as preparing bills, handling cash

registers, processing cash payments and giving accurate change to the customer.

 Any sales personnel responsibilities also include being polite and helpful to the customer

and assisting them in understanding about a product or service in detail.

 Ensuring the fact that enough pieces of each item are present in the store and there is no

shortage. In case of shortage, he/she must inform the management about the same.

 Conveying the complaints and reviews of the customers to the management system so

that the problem can be resolved.

 It is the responsibility of a sales clerk to see to the fact that each customer goes home

satisfied with the services and looks forward to coming back again.

Table 1: Manpower Requirements

 BOTEPON MANUFACTURING COMPANY

1. General Manager 1
2. Production Manager 2
3. Accountant 1
4. Cashier 1
5. Sales Clerk 1
6. Store Officer 0
7. Laborer 3

Table 1 represents the manpower requirements of the entity. Botepon Manufacturing

Company shall be composed of three (3) departments, the production department, selling and

administrative department. In production department, the company shall have five (5) employees

which composed of two (2) production supervisor and three (3) factory workers. In

administrative department, the department shall have 3 employees which composed of one (1)

general manager, one (1) cashier and one (1) accountant. And the selling department shall have

two (2) employees that will serves as a sales clerk.

IV. Salaries and Wages

Table 2: Salaries and Wages

Position Basic Salary Per Month Annual Cost

1. General Manager 12,000.00 144,000.00
2. Production Manager 10,000.00 120,000.00
3.Accountant 9,000.00 108,000.00
4.Cashier 6,000.00 72,000.00
5.Sales Officer 5,832.00 69,984.00
6. Store Officer 5,602.00 67,224.00
7. Laborer 5,602.00 67,224.00
 BOTEPON MANUFACTURING COMPANY

Table 2 contains the salaries and wages for the general manager staff and laborers

respectively. The general manager staff will be receiving fixed salary while the workers and the

salesmen will be receiving salary based on output done. The laborers shall be paid 6.67 per

output worked. The positions of general manager, production manager, accountant, cashier and

sales officer shall be occupied by the partners.

V. Government Requirement

Requirements for New Business:

A. Business Permit

1. SEC Registration (Partnerships and Corporations )

2. Building Permit and Occupancy Permit (for newly constructed)

3. Zoning Clearance

4. Mayor’s Permit

5. Community Tax Certificate

6. Annual Registration Fee

B. Building Permit & Occupancy Permit

1. Building Permit ( 4 copies each )

a. Barangay Clearance

b. Building Plan

c. Bill of Materials

d. Tax Declaration

e. Land Title

f. Building & Sanitary Permit Application Form

g. Fire Safety Inspection Fee

 BOTEPON MANUFACTURING COMPANY

VI. Employee Benefits

A. Social Security System

SSS program provides a package of benefits in the event of death, disability, sickness,

maternity and an old age. It provides for a replacement of income on account of the

aforementioned contingencies.

B. Philippine Health Insurance Corporation (PhilHealth) Benefits

As responsible corporate citizens, employers must make sure that their employees are

duly registered with PhilHealth and that their premium contributions are remitted regularly, on

time and accurately.

The program shall be limited to paying for the utilization of health services by covered

beneficiaries. It shall be prohibited from providing health care directly, from buying and

dispensing drugs and pharmaceuticals, from employing physicians and other professionals for

the purpose of directly rendering health care.

C. Pag-IBIG FUND Benefits

The program provides three main benefits for the beneficiary, namely housing loan,

short term loan and provident savings.

D. 13th Month Pay

The 13th month pay in the Philippines is equivalent to 1/12 of the basic salary

received by an employee within the year. If a Filipino employee worked for less than a year
 BOTEPON MANUFACTURING COMPANY

(regardless of the cause for the termination of his employment), the amount due to him is

determined by dividing the total salary he received by the number of months he was employed.

E. Maternity Leave

The benefit shall apply to all female laborers whether married or unmarried. Every

pregnant employee in the private sector is entitled to maternity leave benefit of sixty (60) days in

case of normal delivery or seventy eight (78) days in case of caesarean section delivery, with the

benefits equivalent to one hundred percent (100%) of the average daily salary credit of the

employee as defined under the law.

F. Paternity Leave

All married male laborers, regardless of their employment status, shall be given
paternity leave of seven(7) calendar days, with full, consisting of basic salary and mandatory
allowance for him to support his legal wife during her period of recovery or in nursing his new
born child.

VII. How to Register a Business

The following are the steps and guidelines to register your business name with the SEC:

1. Choose your proposed business name

Before you register your business with the SEC, you should be ready with your

proposed business name. The following are guidelines for an acceptable and not

acceptable business name.

Acceptable Business Names:

 The root word or words of the name shall be considered.

 BOTEPON MANUFACTURING COMPANY

 Describes the nature of business

 Comprised solely of letters and/or numerals

 Punctuation that are part of English and Filipino Language

Names that is not acceptable:

 Those which are or whose nature of business is illegal, offensive, scandalous,

 or contrary to propriety

 Those which are identical or which nearly resemble business names already

registered with government office authorized to register names.

 Names composed purely of generic words.

 Names by which by law or regulation cannot be appropriated.

 Distinguished or suggestive of quality of any class of goods, articles

merchandise or service.

 Abbreviation of names of any nation, inter-governmental or international

organization.

 Names which are misleading, deceptive or which misrepresent the nature of

business
 BOTEPON MANUFACTURING COMPANY

VIII. Project Time Table

Table 3: Projected Time Table
Sequence of Events Descriptions Months Budget
1. Preparation of the Making the proposal including the different August 2017-
feasibility study aspects of the business. June 2018
Each partner shall contribute his/her share on
2. Contribution of Capital July 2018 P30,277.375
the total project cost.
3. Negotiation for the It includes the creation of lease contracts with
office location and the owners of the land and building needed for August 2018
manufacturing site the operation of the business.
Submission of all the necessary documents
4. Registration with the September
needed for the registration to SEC and P4,000.00
SEC 2018
payment for the necessary expenses.
5. Acquisition of and Purchase and placement of the equipment and
October –
installation of equipment furniture and fixtures necessary for the
November P19,814.00
and furniture and production, marketing, and administrative
2018
fixtures and renovation. purposes.
6. Registration with the
Registration to the BIR for the payment of December
Bureau of International P500.00
taxes. 2018
Revenue(BIR)
Purchase of cleaning, office and factory
7. Acquisition of supplies January 2019 P10,954.75
supplies to be used for the business operation.
8. Negotiation with the Dealings with the suppliers of bottles for the
January 2019
suppliers of bottles terms of the purchase contract with them.
9. Hiring of laborers from This activity includes the careful selection of
February 2019
adopted community the workers from adopted barangay.
10. Orientation and
It includes the training of all the laborers of the
training of the people in March 2019
company for the familiarity of their work.
the adopted community
11. Purchase of direct Obtaining the bottles from the suppliers and
April 2019
materials other needed materials.
12. Start of the work of
It includes the work of cleaning, cutting,
the people in the April 2019
painting and designing the bottles.
adopted community
13. Start of accumulating Includes putting the finished products in the
April 2019
inventory stock room.
14. Grand Opening The official opening of the business store. May 2019

Table 3 shows the projected time table for the sequence of events that shall be completed

before the start of the business. The entity shall plan for its first year’s operation budget. After

completing all the requirements the business shall start on May 2019.
Sequence of Events 2017 2018 2019
AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY
1. Preparation of the feasibility
study
2. Contribution of Capital
3. Negotiation for the office
location and manufacturing site
4. Registration with the SEC
5. Acquisition of and installation of
equipment and furniture and
fixtures and renovation.
7. Registration with the Bureau of
International Revenue(BIR)
8. Acquisition of supplies
9. Negotiation with the suppliers
of bottles
10. Hiring of laborers from
adopted community
11. Orientation and training of the
people in the adopted community
12. Purchase of direct materials
13. Start of the work of the people
in the adopted community
14. Start of accumulating
inventory
15. Grand Opening

Figure 2: Gantt Chart

IX. Administrative Utilities & Expenses

Table 4: Office Equipment and Furniture and Fixture

Description Unit Quantity Unit Cost Total Cost

Office Table Piece 3 1800 5400
Monobloc Chair Piece 3 249 747
Second Hand Computer Set 1 6500 6500
Storage/ Filing Cabinet Piece 1 3150 3150
Electric Fan Piece 2 1774 3548
Blow Dryer Piecce 1 469 469
Total 19814

Table 4 shows the office equipment and furniture and fixture. The office shall be

purchasing equipment and furniture and fixtures to conduct business. Office Equipment shall

include a computer set for storing files and recording data transactions. Hardcopies of source

documents, records and other financial transactions shall be kept on a storage/filing cabinet. For

the ventilation and coolness of the room the entity shall purchase air conditioner. The purchase

of office chairs and office tables are also needed for the use of the cashier, accountant, and

general manager.
 Table 5: Cleaning Supplies

Unit
Items Unit Quantity Cost Total Cost

Hand wash Bottles 2 142 284

Bathroom tissue Roll 25 10.5 262.5
Toilet plunger Pieces 1 226 226
Toilet bowl cleaner Liter 1 275 275
Toilet brush Pieces 1 159 159
Rubber gloves Pair 2 110 220
Trash bins Pieces 2 85 170
Soft broom Pieces 2 100 200
Dust pan Pieces 1 30 30
Floor mop Pieces 1 368 368
Floor rugs Pieces 2 70 70
Buckets and dipper Set 1 50 50
Sponge Pieces 4 15 60
Total 2374.50

Table 5 shows the purchase of cleaning supplies for the first year of operation. The cost

of annual purchase of cleaning supplies shall be treated as expense.

 Table 6: Office Supplies
Items Unit Quantity Unit Cost Total
Ballpen Box 2 46 92
Bond Paper-Long Ream 2 130 260
Bond Paper-Short Ream 2 150 300
Calculator Pieces 4 149 596
Cash Invoice Pad 15 100 1500
Cash Voucher Pad 10 30 300
Columnar Pad Pieces 4 41 164
Correction Tape Pieces 4 20 80
Cutter Pieces 2 29 58
Enveloped-Long Pieces 5 12 60
Enveloped-Short Pieces 5 10 50
Fastener Box 2 30 60
Fire Extinguisher Pieces 2 1800 3600
Folder-Long Pieces 10 4 40
Folder-Short Pieces 10 4.75 47.50
Glue Pieces 2 24.50 49
Log Book Pieces 1 129.25 129.25
Paper Clip Box 2 19.75 39.50
Pencil Dozen 2 63.50 127
Pentel Pen ( Refill) Pieces 2 57 114
Pentel Pen (Pilot) Bottle 2 70 140
Puncher Pieces 2 130 160
Scissor Pieces 2 45 90
Scotch Tape Pieces 2 25 50
Scotch Tape
Pieces 2 85 170
Dispense
Sharpener Pieces 2 5.75 11.50
Stamp Pad Pieces 1 99 99
Stapler Pieces 2 45 90
Stapler Wire Box 2 31.75 63.50
Stapler Remover Pieces 2 20 40
Total 8580.25

Table 6 shows the purchase of office supplies for the first year of operation. The cost of

annual purchase of office supplies shall be treated as expense.

 Table 7: Taxes & Licenses
BIR Registration 1,000
BIR Licenses 300
Business Plate Fee 250
CTC 30
Electrical Inspection 450
Fire Inspection 200
Health Certificate 50
Percentage Tax Expense 6,750
Police Clearance 150
Sanitary Permit 150
Securities and Exchange Commission Registration 4,000
Stickers 50
Working Permit 600
TOTAL Php. 13,980

Table 7 shows the taxes and licenses expense of office. These are the expenses incurred

for the first year of business operation. Taxes and Licenses incurred in the next four years shall

only be composed of Business Plate Fee, CTC, Electrical Inspection, Fire Inspection, Health

Certificate, Percentage Tax Expense, Police Clearance, Sanitary Permit, Stickers and Working

Permit because these expenses shall be renewed annually.

Rent and Utilities for Office

Monthly rent, electricity and water expenses allocated to office consumption shall be

P10,000.00, P1,000.00, P300.