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CHAPTER 5
PRODUCTION PLAN

 Method
Production flow chart

This method is Making a Clay Keychain

o Step by step Process (your pictures are way too big- reduce the sizes)
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1. Gather your materials. Making a clay keychain requires mold-and-bake clay (also known as polymer
clay), a small cookie cutter, a large needle or toothpick, and a split ring or keychain assembly. Make
sure to cover your space with newspaper or something that can keep the clay from sticking onto the
table!
- Split rings come in a variety of shapes and sizes. You can buy larger ones that a decorative clay shape
can be directly attached to or you can buy a more complex split ring and chain assembly that is made
specifically to attach your own keychain art to. Pick whichever one you like. You can even reuse parts
from an old keychain if you have one lying around.

2. Roll a small piece of the mold-and-bake clay to a thickness of about 1⁄8 inch (0.3 cm), using a
rolling pin or other rolling tool (you may even be able to use a pen or pencil). The clay should come
out smooth and the thickness should be uniform throughout.
- If desired, press more than one color together to create a swirled effect. You can even make small
shapes and press them into a larger piece of the clay. Be creative!
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3. Use a cookie cutter to cut the clay into the desired shape. Choose the shape of your choice, such as
a flower for Mother's Day, a heart for Valentine's Day. Sports fans will enjoy a keychain shaped like a
basketball, baseball or football.
- You can also create your own shape for your key chain with a sharp paring knife or utility knife.

4. Create a hole
approximately 1⁄4 inch (0.6 cm) from the top of the shape, using a sharp object such as a needle or
toothpick.
- This hole will be used to attach your clay shape to the split ring, so make sure the hole is in a
position that will make this possible.
- Many mold-and-bake clays allow you to attach small jewelry findings, such as small metal loops,
directly into the clay before baking. If the clay you purchased allows this, it may be a good idea to
attach a loop of wire to your clay shape so that a split ring can be easily attached to it later.
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5. Place the clay shape on a baking sheet and bake according to the directions on the package.
-  Remove from the oven and allow to cool completely before attempting the next step.

6. Attach your slip

ring or keychain assembly to the cooled shape. 
- Be careful not to be too rough when connecting the two pieces together, as it could break your
beautiful new keychain.

Store Facility Lay Out

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o Production Capacity Per Day
Our business is just new in town, thus it affects our production a day. We depend on our
customer to produce an output. More or less we produce 50 items a day as of now.
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

 Materials
Direct Materials:

Indirect Materials:
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
Scissors Php 75.00 1 Php 75.00
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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?

Manpower
Our business is in the process of adjusting, thus, our group decided not to hire anybody for the
meantime. The members of our group are enough to fill the manpower of our business. The group
thought of having some laborers soon if we can have our expansion.

Sample only

Direct Labor Indirect Labor

Sewer Managing Partner
Product Designer
Sales Personnel
Packer
Delivery Personnel
Utility

 Cost of labor Matrix (Monthly Salaries)

The indirect laborers do not get any salary because they happen to be the owners/partners of
the business.

Number of Personnel Salary Shifts

1 Sewer Php 3, 000.00 Day (8-hour)
1 Assistant Sewer Php 1,200.00 Day (8-hour)

 Labor Availability?
 Labor Productivity (Shifts per Personnel)?

Summary Of Production Cost?

Operating Expenses?
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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.
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