Institute of Graduate Program Education

MASTER IN BUSINESS ADMINISTRATION (MBA)

BA – 301 (Product Development and Technology)

PRODUCT DEVELOPMENT PROPOSAL

CHARCOAL BRIQUETTES – CARBONIZED RICE HUSK/HULL
RHEA ALLETTE D. CLAVERIA
MBA - I

PROJECT DESCRIPTION:

This project provides alternate source of fuel or a great substitute to the usual/traditional charcoal
used for cooking, poultry brooding and other industrial activities. Product from this project is
economically and environmentally friendly since it is made out of corn cob, rice husk/hull, saw
dust and other farm, yard and industrial wastes.

The project will be undertaken by the Municipal Rural Improvement Club (MRIC) of Brgy.
Poblacion, Kiblawan, Davao del Sur since today farmers housewives are organized and
encouraged to participate in generating additional income for their families.

Hence, this proposal is prepared in order for the club to undertake a livelihood project for their
advancement and further development. It also envisions to increase or augment farmers’ income
thru their housewives projects and ultimately improve their quality of life.

PRODUCT DESCRIPTION:

Biomass briquette is generated from Carbonized Rice Husk/Hull and it will be substituted with
a corn cob when off season. Cassava, corn or camote starch will be used as binding agent. It is a
good alternative to firewood, wood pellets and charcoal since it is smokeless and odorless when
used. Briquette are renewable sources of energy and it is more ecologically when compared to
coal. No residue or waste while burning. The burning of briquettes is more uniform and are more
volatile as compared to other traditional fuels.

RHEA ALLETTE D. CLAVERIA – Student ID: 2020 - 15010

 Institute of Graduate Program Education
MASTER IN BUSINESS ADMINISTRATION (MBA)
BA – 301 (Product Development and Technology)

PRODUCTION PROCESS FLOW:

Gathering/Hauling of Raw
Materials from the Farm
Preparation
of Raw and other
Materials

Carbonization
of Rice Husk/Hull

Binder Preparation
and Making

Molding Mixing

Drying

Packaging

Marketing and
Distribution

RHEA ALLETTE D. CLAVERIA – Student ID: 2020 - 15010

 Institute of Graduate Program Education
MASTER IN BUSINESS ADMINISTRATION (MBA)
BA – 301 (Product Development and Technology)

ECONOMIC MODEL:

Input/s Production Cost (Php)

Investment Cost
(Manual Briquetting Machine) 6,000.00
Fixed Cost (Php/day)
Depreciation Cost 6.16
Repair and Maintenance 1.34
Sub Total 7.50
Variable Cost (Php/day)
Labor Cost 250.00
Carbonized Rice Hull 300.00
Cassava Starch 480.00
Utilities 200.00
Sub Total 1,230.00
Total Cost (Php/day) 1,237.50

Assumptions:

Machine Production Rate : 4 kilograms per hour

Depreciation Cost : 10% Salvage Value (2 Years)
Repair and Maintenance : 10% of the Investment Cost (1 Year)
Labor (Inclusion) : Gathering and Preparation of Raw Materials
Binder Making, Carbonizing, Mixing,
Molding, Drying and Packaging
: 8 hours per day (working hours)
Carbonized Rice Husk used per day : 30 kilos
: 10.00 per kilo (cost including hauling fee)
Binder (Cassava Starch) : 1 kilo CRH : 0.4 kilo Cassava Starch
: 40.00 per kilo
Utilities : Water, burning and binding materials and
others
Drying Period : 7 days (1 week)
Production per day : 45 kilos of Mixed Materials (Fresh Weight)
: 0.053 kilo per briquette (Fresh Weight)
: 850 pieces of briquettes
: 1 kilo = 19 briquettes
: 44 Packs (1 kilo per pack)
: Php 35.00 per pack

RHEA ALLETTE D. CLAVERIA – Student ID: 2020 - 15010

 Institute of Graduate Program Education
MASTER IN BUSINESS ADMINISTRATION (MBA)
BA – 301 (Product Development and Technology)

RETURN ON INVESTMENT:

Sales (per day) : 1,540.00

44 packs (@ 35.00 per pack)

Expenses : 1,237.50
Investment Cost + Variable Cost + Fixed Cost

Profit/Net Income : 302.50

Return on Investment (ROI) : Net Income/Expenses

: 302.50/1,237.50
: 24.44%

RHEA ALLETTE D. CLAVERIA – Student ID: 2020 - 15010