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CHAPTER 5
PRODUCTION PLAN

METHOD
 Production process (Where is your flow chart?)
Our product is a handy bag that is made up of beads. This product has a good quality
that may last longer. You can assure that this bag is reliable and secure because it is handmade.
To make handy bag that made of beads, here are the process that are shown below.

STEP 1: Prepare the materials that are needed.

 Beads, Plastic thread, Lining fabric, Needle, thread and Zipper
STEP 2: Making crystal beaded chains
 At first measure the height of the purse and cut 3 times longer plastic thread. Thread 3 bicone
beads into the plastic thread, set the3 beads on the center of the thread. Now thread another
bicone bead from both sides. The thread is now divided into 2 parts, thread 1 bead on each side
and again thread the 3 rd bead from both sides. Repeat this process until it reaches the required
length .
STEP 3: Joining the crystal beaded chains
 Take a good amount of plastic thread and thread a bicone bead into it, set it in the center of the
thread. Place 2 crystal beaded chains side by side and insert the thread into the beads of these 2
chains by keeping the threaded bead in the center.
 After inserting the thread into the beads of the side-by-side crystal beaded chains, thread
another bead from both sides with that thread. Repeat the process until it reaches the other
end.
STEP 4: Joining the sides
 If your done beading the body for the purse, fold the crystal beaded mat into half , make sure to
fold the purse exactly into half, by keeping equal height on both sides. After reaching the end,
randomly thread the last few bead to lock them well.
STEP 5: Preparing the interior piece
 Measure the size of the purse and cut an interior pieces for it. Fold the interior piece into half
and attach a matching zipper with it. Sew or stitch the sides and turn the right side of the
interior piece out.
STEP 6: Stitching the interior piece
 Insert the interior piece into the crystal beaded exterior pieces of the purse. Use a needle and
thread to stitch the exterior and interior pieces together.
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 Store Facility layout (revise this one- this looks inappropriate)

Production Capaci

Production Capacity per day

Many customers like our product because of the quality and the uniqueness it have.Because of
that, demand are increasing. Everyday we can make 10-15 bags depend on the workers we have.
We make bags everyday to replace the other bag that are sold –out and to sustain our customers
satisfaction.
Sample only
Number of Capacity per Weekly Monthly
Yearly Production
Employed Person Production Production
1 5 30 120 144
2 5 30 120 144
3 5 30 120 144
Total = 3 15 90 360 432

MACHINE
Our product is a hand made one, even though it is hard to make but we are willing to
serve it with honor and dignity. And with that , we also ensure our safety to make it more presentable
and beautiful. We do not use any machine because it is not necessary anymore and we prefer a hand
made one. And obviously , we need a lot of time to make it because we need a 400-500 beads together
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with a plastic thread and a zipper in order to finished a one beadabag and we can buy it in the DCLA or
in the Bangkerohan , Davao City. We tried to make as many as we can serve our customers and we can
say that our product is one of the most attractive hand made bag in this city. We do believe “the more
unique steps business takes, the less competition a business will face in that field.

MATERIALS
 Cost of Direct and Indirect Materials

*DIRECT MATERIALS
BEADS - 400/ pack
PLASTIC THREAD - 30
LINING FABRIC - 60
*INDIRECT MATERIALS
NEEDLE & THREAD - 7
ZIPPER - 8
________________
TOTAL - 505

Sample only
 Cost of Direct and Indirect Materials
Quantity
Direct Materials Price per meter Cost
needed/month
Waterproof Canvas Fabric Php 105.00 6 Php 630.00

Cordura Fabric Php 95.00 6 Php 570.00

Cotton Lining Php 85.00 6 Php 510.00

Velcro Php 5.00 6 Php 30.00

Plastic Molded Zipper Php 15.00 6 Php 90.00

Foam Php 40.00 6 Php 240.00

Price per Piece

Thread Php 15.00 6 Php 90.00

Swivel Hook Php 5.00 240 Php 1, 200.00

Price per Roll

Nylon Webbing Php 200.00 1 Php 200.00

Quantity
Indirect Materials Price per piece Cost
needed/month
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Scissors Php 75.00 1 Php 75.00

Needle Php 20.00 1 Php 20.00

Meter Stick Php 15.00 1 Php 15.00

Tailor’s Chalk Php 10.00 2 Php 20.00

Carton Php 4.00 24 Php 96.00

Total Cost /month Php 3,786.00

Total Cost/Year Php 45, 432.00

 Raw Materials Availability

We buy our raw materials in DCLA, Davao city. There is a jewelry shop there that sells beads,
threads and also jewelries. This shop provides us our needs especially in our raw materials.
When this store lack of availability in materials that we needed, we have a second option to go.
It is in the bangkerohan, Davao City. It is also a jewelry shop that sells beads, threads and
jewelries.

 MANPOWER
 Labor force
The G-ideas beadabag shop has three(3) regular skilled workers. The firm is very careful on
choosing workers, they required at least one(1) year experienced work. They must be know how to
handle and to entertain customers, but the most important is that they should be hard worker in
order them to be more productive in terms of providing services directly to customers.
 Cost of Labor
The G-ideas beadabag shop has three(3) regular workers that receive 2,500 monthly. Their
salary has a possible to increase depends on their performance as an entertainer and as a good
worker in our shop.

 Labor Availability
The availability of our worker is from 7:00 in the morning and 6:00 in the evening. Our
workers are from the Panabo City that are living near at our shop, so that they are easily to contact
if ever we need some worker to serve some customers.

 Labor Productivity
Our workers give satisfaction to our customers. They give their best to assure that
customers would like our product that may help them to increase theie possibility to earned more
profit.
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SUMMARY OF PRODUCTION COSTS (Convert this to table)

In production, we should provide a good service to our customers. This may contain variety of
expenses but we need to catch up with it enable us to start our business. Raw materials in beadabag
such as beads, plastic thread, fabric and zipper costs 505 in all. It is quite expensive but this is
needed to make some bag to sell. The next thing, laboring is also quite expensive but it is also
needed to have some people who can entertain and promote our product especially if there are
many customers. This production may cost expensive but it is important to start your business.

BEADS - 400/ pack

PLASTIC THREAD - 30
ZIPPER - 8
NEEDLE - 2
THREAD - 5
FABRIC - 60
_______________
TOTAL - 505

 OPPERATING EXPENSES
LIGHT - 3,OOO/ month
WATER - 5OO/ month
RENT - 20,000/ month
TRANSPORTATION - 300
SALARIES - 2,500/ month
DRINKING WATER - 300
________________
TOTAL - 26,600

Sample only
Summary of Production Costs
The table below shows the summary of our annual Production Costs including the raw materials
and overhead cost.

Raw Materials Php 45, 432.00

Overhead Cost Php 86, 400.00

Total Php 131, 832.00

Operating Expenses
The operating expenses include salary, raw materials, light and power, rent and miscellaneous
expenses.
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Expenses Expenses per Month Expenses per Year
Salaries Php 6,000.00 Php 72, 000.00
Raw Materials Php 3, 786.00 Php 45, 432.00
Light and Power Php 1,000.00 Php 12, 000.00
Rent Php 5,000.00 Php 60, 000.00
Miscellaneous Php 1, 500.00 Php 18, 000.00
Total Expenses Php 17, 286.00 Php 207, 432.00