TECHNICAL STUDY

A. Product

Morinada Enterprise shall offer a nutritious, all-natural

and inexpensive moringa empanada made from homemade dough to the

selected five barangays in the City of San Fernando, La Union.

B. Manufacturing and Distribution Process

1. Manufacturing Process

FIGURE 2

PRODUCTION PROCESS
 2. Distribution Process

The moringa empanada will be delivered to the selected five

barangays businesses in the City of San Fernando, La Union

through the use of the motorcycle. The proposed business shall be

responsible for the delivery of the moringa empanada.

FIGURE 3

DISTRIBUTION PROCESS
C. Plant Size

The size of the workplace is 5.90 meters by 5.00 meters. The

allotted room will be divided into two, the office of the

business where the transactions are being made. The other half

will be allotted for the production area of moringa empanada to

be done by three (3) workers. The size of the office is 2.30

meters by 2.10 meters while the size of the production area is

5.90 meters by 2.90 meters.

D. Schedule of Operation

Table 10 shows the schedule of operation of the business.

TABLE 10

DAILY OPERATIONAL SCHEDULE OF THE BUSINESS

TIME ACTIVITIES PERSONS INVOLVED

Orders will be collected in advance
(2-3 days before the expected time of delivery)
The production process which
includes the preparation of
ingredients (moringa dough) and
8:00am listing of orders of the
-12:00a Moringa Empanada from the Maker and Maker/Driver
m selected five barangays via
phone calls, text messages and
Facebook messenger will be done
simultaneously.
12:00pm - Allotted time for the employees’
Maker and Maker/Driver
1:00pm lunch.
1:00pm –
Packing and preparation for Maker and Maker/Driver
1:30pm
delivery.
Delivery of the Moringa Empanada
1:30pm –
ordered by the consumers of the Maker/Driver
3:30pm
selected five barangays.
 3:30pm – Allotted time for the employees’
Maker and Maker/Driver
3:45pm snack.
Preparation of ingredients of the
3:45pm –
Moringa Empanada for the next Maker and Maker/Driver
4:45pm
day
4:45pm -
Cleaning time Maker and Maker/Driver
5:00pm

E. Property, Plant and Equipment

Tables 11-14 show the Production Equipment, Delivery

Equipment, Furniture and Fixtures needed and Office Equipment. It

shows the items, description, specification, their acquisition

costs and their useful life. The suppliers are all located in the

City of San Fernando, La Union.

TABLE 11

PRODUCTION EQUIPMENT

Unit
Useful Cost Total
Items Supplier Description Unit
Life (Php Cost
)
It will be
used to
CSI-City
Electric make the 2
of San 1,175.0 2,350.0
Hand
Fernando,
moringa pc 5 yrs.
Mixer dough for s. 0 0
La Union
the
empanada.
CSI-City
To keep the
Refrigerat of San 10 10,449. 10,449.
ingredients 1 pc.
or Fernando, yrs. 00 00
fresh.
La Union
Gas Stove CSI-City For cooking
2
(2 of San of the 1,850.0
burners Fernando, moringa
pc 5 yrs. 925.00
s. 0
) La Union empanada.
Total Expense: ₱14,649.00
 TABLE 12

DELIVERY EQUIPMENT

Useful
Descripti Unit Cost Total
Items Supplier Unit Lif
on (Php) Cost
e
It will
be used
to
deliver
the
Motorcycl Motortrad moringa 1 10
51,400.00 51,400.00
e e empanada pc. yrs.
to the
designate
d
barangays
.
To keep
Motorcycl the
e moringa
La Union
Insulated empanada 2
Metro 3 yrs. 1,298.00 2,596.00
Delivery warm pcs.
Houseware
Thermal during
Bag the
delivery.
Total Expense: ₱53,996.00

TABLE 13

FURNITURE

Unit
Useful
Cost Total
Items Supplier Description Unit Lif
(Php Cost
e
)
CSI-City
Monoblo To be used
of San 4
ck by the 5 yrs. 238.00 952.00
Fernando, pcs.
Chair employees.
La Union
Plastic CSI-City Workplace of 1 pc. 5 yrs. 3,423.0 3,423.00
Table of San the makers 0
 in
preparation
with of the
Foldabl ingredients
Fernando,
e and
La Union
Steele production
Legs of the
moringa
empanada.
Metro For sorting
Monoblo House the orders
ck Ware of the 1 pc. 5 yrs. 535.00 535.00
Table moringa
Citiwide
empanada.
Total Expense: ₱4,910.00

TABLE 14

OFFICE EQUIPMENT

Unit
Useful Total
Items Supplier Description Unit Cost
Life Cost
(Php)
Green
Capital
Electric For 1
Lumber 5 yrs. 1,000.00 1,000.00
Fan ventilation. pc.
and
Hardware
To
AMB facilitate
Smartpho 1
Communic getting 3 yrs. 2,399.00 2,399.00
ne pc.
a-tions order from
customers.
Owner’s
CSI-City
workplace
of San
Office where he can 1
Fernando 7 yrs. 2,180.00 2,180.00
Table place his pc.
, La
records and
Union
documents.
Total Expense: ₱5,579.00

E. Plant Location
 The specific location of the production area will be

situated at one of the proponents’ house located at 75-A, Purok 3

Brgy. Pagudpud, City of San Fernando, La Union. It is situated

beside Pagudpud Integrated School. It is owned by the father of

one of the proponents of this study, Mr. Camilo Albert L.

Peralta, the registered house owner and the direct investor of

Morinada Enterprise.

Figure 4 shows the location where the business is located.

FIGURE 4.

MORINADA ENTERPRISE BUSINESS LOCATION

F. Plant Layout
 The figure below illustrates the Office and Production Area

layout of the proposed business. For the Office layout, it

consists of chairs, office table, and other supplies needed. For

the Production Area layout, it consists of the tables, chairs,

refrigerator, and other supplies needed for its operation.

FIGURE 5

SOYUMMY ENTERPRISE PLANT LAYOUT

E. Building
 There will be a minor modification in the business space

that is necessary before the operation starts. Two workers will

be engaged to make the changes for 3 days. Each will be paid Php

500.00 a day. They will be remunerated a total of Php 5,000.00.

TABLE 15

RENOVATION EXPENSE

Cost per
Item Quantity Total Cost (Php)
piece (Php)
Plywood 260.00 15 pcs. 3,900.00
Common Nail 140/Kl ½ kl. 70.00
Paint 600.00/4L 2 pcs. 1,200.00
Paint Brush 70.00 2 pcs. 140.00
Roller Brush
150.00 1 pc. 150.00
w/ Tray
Roller Brush 55.00 1 pc 55.00
Total Expense: ₱5,515.00
Basic
No.
No. of Salary TOTAL
Position of
Employees per day (Php)
Days
(Php)
Workers 2 500.00 2 2,000.00
Total Expense: ₱2,000.00
Total Renovation Expense: ₱7,515.00

F. Raw Materials

Raw materials such as potatoes, carrots, salt, sugar, flour,

lard, ground meat, cooking oil, and baking powder shall be bought
 in the City of San Fernando Wet Market to ensure clean and

quality ingredients. The water shall be ordered from Dainty Water

Refilling Station and the brown paper bags shall be bought La

Union Bakers.

TABLE 16

RAW MATERIALS

Unit Monthly Total

Item Supplier Cost Unit Requirement Cost
(Php) (Kilogram) (Php)
Moringa City of San Fernando 1 kilo 2 ½ Kilo
400.00 1,000.00
Flakes – Wet Market
City of San Fernando 1 kilo 585 kilo
Potatoes 35.00 20,475.00
– Wet Market
City of San Fernando 1 kilo 234 kilo
Carrots 40.00 9,360.00
– Wet Market
Ground City of San Fernando 117 kilo
280.00 1 kilo 32,760.00
Meat – Wet Market
City of San Fernando 1 kilo 3.12 kilo
Garlic 100.00 312.00
– Wet Market
Soy City of San Fernando ½ gallon
89.00 ½ gallon 89.00
Sauce – Wet Market
City of San Fernando 52 kilo
Sugar 42.00 1 kilo 2,184.00
– Wet Market
City of San Fernando 1 kilo 182 kilo
Flour 50.00 9,100.00
– Wet Market
City of San Fernando 52 kilo
Lard 70.00 1 kilo 3,640.00
– Wet Market
Cooking City of San Fernando 117 liter
90.00 1 liter 10,530.00
Oil – Wet Market
Baking City of San Fernando 25.00 50 grams 728 gram 364.00
Powder – Wet Market
City of San Fernando ½ kilo
Salt 20.00 1 kilo 10.00
– Wet Market
Dainty Water 3 gallon
Water 25.00 1 gallon 75.00
Refilling Station
Brown 11,700
Paper pieces
La Union Bakers 32.00 100 pcs 3,744.00
Bag
(No.2)
Total Expense: ₱93,643.00

G. Supplies

Table 17 shows the lists of supplies needed for the

operation of the business for the whole year.

TABLE 17

SUPPLIES

a. Kitchen Supplies

Unit Cost Total Cost

Item Supplier Unit
(Php) (Php)
Metro House Ware
Frying Pan 560.00/pc 3 pcs. 1,680.00
Citiwide
CSI City of San
Mixing Bowl Fernando, La 157.00/pc 2 pcs. 314.00
Union
Empanada
La Union Bakers 85.00/pc 3 pcs. 255.00
Molder
Metro House Ware
Rolling Pin 100/pc. 3 pcs. 300.00
Citiwide
Measuring CSI City of San
Cups and Fernando, La 100/pc. 2 pcs. 200.00
Spoons Union
Metro House Ware
Tongs 70.00/pc. 3 pcs. 210.00
Citiwide
Stainless Metro House Ware
Steele 45.00/pc. 2 pcs. 90.00
Citiwide
Spatula
Small Metro House Ware 300.00/pc. 1 pc 300.00
Kitchen Citywide
Weighing
Scale
Stainless Metro House Ware
120.00/10pcs. 1 pc. 120.00
Spoon Citywide
CSI City of San
Knife Fernando, La 60.00/pc. 3 pcs. 180.00
Union
Metro House Ware
Peeler 15.00/pc. 3 pcs. 45.00
Citywide
Chopping Metro House Ware
150.00/pc. 3 pcs. 450.00
Board Citywide
Metro House Ware
Tray 120.00/pc. 6 pcs. 720.00
Citywide
Stainless Metro House Ware
Steel 140.00/pc. 3 pcs. 420.00
Citywide
Stainer
Glassine
La Union Bakers 310.00/roll 1 pc. 310.00
Paper
Metro House Ware
Potholder 10.00/pc. 3 pcs. 30.00
Citywide
Kitchen Metro House Ware
55.00/pc. 2 pcs. 110.00
Scissors Citywide
Plastic 50.00/
La Union Bakers 2 packs 100.00
Gloves pack
Apron La Union Bakers 30.00/pc. 3 pcs. 90.00
Hair Net La Union Bakers 12.00/pc. 3 pcs. 36.00
Spit Guard Metro House Ware
Saliva 35.00/pc. 3 pcs. 105.00
Citywide
Protector
Total Expense: ₱6,065.00

b. Cleaning Supplies

Unit Cost Total Cost

Item Supplier Unit
(Php) (Php)
City of San
Alcohol Fernando – Old 230.00/ltr 1 ltr. 230.00
Market
Alexalaine
Towel General 20.00/pc. 3 pcs. 60.00
Merchandise
Mega MPG Gen.
Soft Broom 90.00/pc. 1 pc. 90.00
Merchandise
Mega MPG Gen.
Floor Mop 140.00/pc. 1 pc. 140.00
Merchandise
Dust Pan CSI-San 34.00/pc. 1 pc. 34.00
 Fernando, La
Union
Mega MPG Gen.
Rugs 30.00/pc. 2 pcs. 60.00
Merchandise
City of San
Dishwashing
Fernando – Wet 25.00/pc. 1 pc. 25.00
Liquid
Market
CSI-San
Sponge Fernando, La 60.00/3 pcs. 3 pcs. 60.80
Union
CSI-San
Garbage Can Fernando, La 110.00/pc. 2 pcs. 220.00
Union
CSI-San
50.00/10
Garbage Bag Fernando, La 1 pc. 50.00
Union pcs.
Total Expense: ₱969.80

c. Office Supplies

Unit Cost Total Cost

Item Supplier Unit
(Php) (Php)
Light Bulbs CSI 189.00/2 pcs. 2 pcs. 378.00
Record Book CSI 45.00/pc. 2 pcs. 90.00
Pens CSI 56.50/pack 1 pack 56.50
Malayan
Calculator 130.00/pc. 1 pc. 130.00
Enterprises
Total Expense: ₱654.50

H. Labor Requirements

The projected business requires workforce that is always

capable of being responsible and hardworking to the given task.

Morinada Enterprise will have one manager whose responsibility is

to manage the daily operation. It will hire three (3) workers,

one (1) worker in making the moringa empanada product and two (2)

makers/drivers to deliver/make the moringa empanada. They will be

required to work from Monday to Saturday or a total of 312 days

annually. The two employees who are in charge of making and

delivering the finished products will earn Three Hundred Fifty

pesos each, while the remaining employee will be compensated a

total amount of Three Hundred pesos.

TABLE 18

LABOR REQUIREMENTS

Basic
No. of No. of TOTAL
Position Salary per
Employees Days (Php)
day (Php)
Maker/Driver 2 350.00 312 218,400.00
Maker 1 300.00 312 93,600.00
Total Expense: ₱312,000.00

I. Utilities

La Union Electric Cooperative (LUECO) shall provide power

supply in the said location. Installation of electricity shall

already be part of the utility expense. For the water supply, the

business will be using an electric pump, therefore it will be

added in the electricity bill.

Computation for the Total Electricity Consumption

 Electric Hand Mixer (2 x 2.08 = 4.16 kWh/month)

Watt-hours/day : 80 Watts x 1 hour = 80Wh/day

kWh per day : 80/1000 = 0.08 kWh/day

kWh per month : 0.08 kWh x 26 days = 2.08 kWh/month

 Refrigerator (1 x 43.20 = 43.20 kWh/month)

Watt-hours/day : 60 Watts x 24 hours = 1,440 Wh/day

kWh per day : 1,440/1000 = 1.44 kWh/day

kWh per month : 1.44 kWh x 30 days = 43.20 kWh/month

 Light Bulb (4 x 0.832 = 3.33 kWh/month)

Watt-hours/day : 4 Watts x 8 hours = 32 Wh/day

kWh per day : 32/1000 = 0.032 kWh/day

kWh per month : 0.032 kWh x 26 days = 0.832 kWh/month

 Electric Fan (1 x 12.48 = 12.48 kWh/month)

Watt-hours/day : 60 Watts x 8 hours = 480 Wh/day

kWh per day : 480/1000 = 0.48 kWh/day

kWh per month : 0.48 kWh x 26 days = 12.48 kWh/month

 Water (1 x 7.80 = 7.80 kWh/month)

Watt-hours/day : 300 Watts x 1 hour = 300 Wh/day

kWh per day : 240/1000 = 0.30 kWh/day

kWh per month : 0.30 x 26 days = 7.80 kWh/month

 Cellphone Charger (1 x 0.208 = 0.208 kWh/month)

 Watt-hours/day : 4 Watts x 2 hours = 8 Wh/day

kWh per day : 8/1000 = 0.008 kWh/day

kWh per month : 0.008 x 26 days = 0.208 kWh/month

Consumption Rate 71.178 kWh

Multiplied by price per kWh Php 8.6992/kWh
Total Php 619.19
Add: 12% VAT Php 74.30
Electric Bill per Month Php 693.49

TABLE 19

UTILITIES

Annual
Monthly Total Cost
Utilities Company Supplier Consumption
Cost (Php) (Php)
(Php)
La Union Electric
Electricity 693.49 8,321.88 8,321.88
Cooperative
Liquefied A.Q.N. Marketing
1,260.00 15,120.00 15,120.00
Petroleum Gas Inc.
Phone Bill Globe Telecom 360.00 4,320.00 4,320.00
Total Expense: ₱27,761.88

J. Waste Disposal

The proposed business' garbage disposal will be the standard

system under existing environmental policies and standards, which

would include separate containers for biodegradable and non-

biodegradable waste. The wastes will be collected by the garbage

truck. Segregated wastes of the premises will lessen the work of

the garbage collectors. The waste disposal fee every month is Php

30.00.

K. Production Cost

The production cost of Morinada Enterprise products contains

the cost of raw materials, direct labor and factory overhead.

TABLE 20

PRODUCTION COST OF MORINGA EMPANADA

Daily Production
Raw Materials Price
Production Cost
Moringa Flakes 38.46 450 0.09
Potatoes 787.50 450 1.75
Carrots 360.00 450 0.80
Ground Meat 1,260.00 450 2.80
Garlic 12.00 450 0.03
Soy Sauce 3.42 450 0.0076
Sugar 84.00 450 0.19
Flour 350.00 450 0.78
Lard 140.00 450 0.31
Cooking Oil 405.00 450 0.90
Baking Powder 14.00 450 0.03
Salt 0.38 450 0.0008
Water 2.88 450 0.0064
Brown Paper Bag (No.2) 144.00 450 0.32
Production Cost ₱ 8.01

TABLE 21

TOTAL PRODUCTION COST AND PRICING

Accounts Moringa Empanada (Php)

Raw Materials 8.01
Direct Labor 2.22
Factory Overhead:
Variable Overhead 0.25
Kitchen Supplies 0.04
Cleaning Supplies 0.007
Variable Utility Cost 0.20
Fixed Overhead 0.06
Fixed Utility Cost 0.05
Depreciation Expense 0.01
Cost of Moringa Empanada per unit 10.54
Mark-up (42.31%) 4.46
Selling Price ₱15.00