CHAPTER III

TECHNICAL FEASIBILITY

This chapter will discuss and determine the efficacy of the proposed product by
examining the details of the manufacturing process, including materials to be used, its location,
labor and its waste disposal system. This chapter serves as the progress of the proposed product
from concept to reality. This study discusses about the processes of production and activities of
the company. It states also the machineries and equipment used in production and other aspects
regarding bringing the raw materials into a finished product ready for trade. Plant layout, size
and production schedule are all presented for the purpose of identifying the business operation.

Objectives of the Study

-To elaborate the uses of the product

-To discuss the manufacturing process of the product and its geographical location.

- To determine the supplies, furniture and fixtures needed in the company’s office, machineries

and equipment needed for production.

Product

Keyxtension is the safest and convenient extension cord. It can cut the current from its

socket when not in use to prevent electrical accident. Moreover, you don’t need to unplug the

power plug from the socket, because you can turn it on and off by twisting the plug left and right

just like extension cord with switch button.

However, unlike extension cord with switch button keyxtension is not easy for kids to

turn on because it needs to plug in any power plug to twist the socket. Therefore, keyxtension

will only work when it is in use.

Manufacturing Process

Figure 3.1 Manufacturing Process

Cutting cable wire and Assembling the parts of Packaging and

attach to plug pin entire keyxtension inventory organizing

Molding entire Molding Keyxtension

Power plug case

Description of the Process

The case and power plug of the keyxtension will be provided by the company by melting

and molding a plastic scrap that acquired from its supplier. The whole keyxtension will be built

manually by the company factory workers through assembling the raw materials and molded

case and plug.

Cutting cable wire and attach to plug pin

Before molding the power plug, some factory workers must attach first the cable wire

into plug pins and cut it to a certain length using copper wire stripping machine.
Molding Power Plug

After cutting the cable wire and attaching to plug pin, the workers will melt the plastic

scrap and coat it to plug pin that attached to the cable wire to mold the entire power plug through

semi-automatic molding blower machine.

Molding Keyxtension case

The case and power plug of the keyxtension must be melt and mould during the process

of manufacturing the product using a certain machines. The case and the plug are made of plastic

scrap that melted in 400 Fahrenheit or 204.44 degree Celsius through semi-automatic moulding

blower machine.

Assembling the parts of entire keyxtension

After moulding the case and power plug, some workers are assigned to assemble the

product including the raw materials such as customized busbar and pin socket, cable termination

screw and flat screw.

Packaging and inventory organizing

After assembling the parts of entire keyxtension, workers are assigned to pack the

product to the designed packaging for the product, and lastly it will be stored in the stock room

and will be ready for delivery.

Production Schedule

Table 3.1 Time frame of daily production process of 64 units of keyxtension

Time
Production Process Required
(in minutes)
Cutting cable wire and
4 mins
attach to plug pin
Molding Power Plug 8 mins
Molding Keyxtension case 14 mins
Assembling the parts of
15 mins
entire keyxtension
Packaging and inventory
5 mins
organizing
Maximum time required
to assemble the entire 15 mins
keyxtension

In this, the production process is divided in every section. However, the “cutting cable

wire and attach to plug pin” and “molding power plug” will be combined into one section and

responsible to deliver their output in assembling section. Moreover, the company decides that the

production process should be slightly earlier than the subsequent process.

For the reason that “Assembling the parts of entire keyxtension” step where the final

output of the product can be obtained, therefore the required time to manufacture keyxtension is

fifteen (15) minutes.

Machinery and Equipment

This refers to the machinery, tools and equipment needed to transform the raw materials

into finished products.

Semi-automatic plastic molding blower machine

HC-515B double wire cutting and striping machine

Creston Electrician Tool Set

Plastic Side Chair

Wooden table
RS PRO Leather Coated Work Gloves

Table 3.2 Cost of Machine, Tools and Equipment needed to manufacture the product

Name of
Cost per unit Quantity Total Cost
Machine/Equipment

Semi-automatic plastic
P1,006,720
molding blower machine P251,680 4

HC-515B double wire

cutting and striping
P20,160 1 P20,160
machine

Creston Electrician Tool P1,379 2 P2,758

Set
RS PRO Leather Coated
120 5 P600
Work Gloves
Plastic Side Chair
P210 2 P420
Wooden table
P1500 3 P4,500

The machines and equipment shown in the figures above are the Semi-automatic plastic

molding blower machine, HC-515B double wire cutting and striping machine, Creston

Electrician Tool Set, RS PRO Leather Coated Work Gloves, Plastic Side Chair and Wooden

table. The cost of machine and equipment is P251,680, P20,160, P120, P1379, P210, P1500.

The machines and equipment quantity is 4, 1, 2, 5, 2, 3 respectively.

Plant Location, Geographical Location of Competing Companies

Figure 3.2 Plant Location

 The company decided to rent a small building that can be used to start the business

operation. The rent cost is one hundred thousand pesos (P100000.) per month. This building is

located at Enriquez St. Cor. Lakandula St. Barangay 9, Lucena City. There are no competing

companies near the said location since the company decided to sells the product on retailers such

as department stores, hardware and other small businesses that sells this kind of product.

Plant Size and Layout

Figure 3.3 Plant Layout: First floor

packaging and inventory organizing
part

Figure 3.4 Plant Layout: Second

floor of the building
Raw Materials and Factory Supplies

Some raw materials needed to produce the product such as customized busbar and pin

socket, cable termination screw, flat screw, and extension cord and plug pins and plastic scrap

are already forged and manufactured by the supplier based on the needs of the company.

The required raw materials to manufacture Keyxtension will be purchased four months

before the business operation begins. The major raw materials which are copper wire, plastic

scrap and metal brass will be acquired by the company from its suppliers from Valenzuela City,

Metro Manila. Also the packaging for the product will be acquired from its supplier Plastic Bag

Manufacturer United Polyresins, Inc. from San Juan Greenhills Metro Manila. The company
decided to order only on the supplier every four months but the raw materials are good for 5-6

months.

Utilities (electricity, water, fuel, etc.)

Utilities are important factors that play a vital role in the smooth operation of the
business. This includes water, electricity and telecommunication.

Utilities Description Estimated monthly cost

Waters The water supply will be
provided by QUEZON
METROPOLITANT 3,500
WATER DISTRICT
(QMWD LUPATA)
Electricity

The electricity supply will

be provided by the 40, 000
MERALCO.

Telecommunication
PLDT, Inc., formerly
known as the Philippine
Long Distance Telephone
Company will be the 2,417
company’s
telecommunication and
internet provider.
Total Cost 45, 917
Administrative Equipment, Supplies and Furniture and Fixtures

The different equipment, supplies, furniture and fixture and their corresponding cost are listed

below:

Table 3.2 List of Administrative Equipments

Item Quantity Unit Total Cost

Computer 5 10,995.00 54,975.00

Printer 2 5,420.00 10,840.00

Wi-fi router 1 949.00 949.00

Telepone 2 734.00 1468.00

Ethernet Network Cable 11 199.00 2,189.00

Fire Extinguisher 2 1,300.00 2,600.00

Total 73,021.00

Table 3.3 List of Office Furniture and Fixtures

Item Unit Cost Quantity Total Cost

Office Table 1,095.00 4 10,950.00

Air conditioner 19,999.00 1 19,999.00

Office Chair 949.00 10 9,490.00

Total 40,439.00
Table 3.4 List of Office Supplies

Item Quantity Unit Cost Total Cost

Log book 3 68.00 204.00

Pen (Box) 2 98.00 196.00

Calculator 3 432.00 1296.00

Ledger 2 41.00 82.00

Pencil 2 68.00 136.00

Staple Wire 2 32.00 64.00

Stapler 4 79.00 316.00

Folder 2 60.00 120.00

Paper Clip 3 24.00 72.00

Fastener (box) 2 45.00 90.00

Puncher 2 68.00 136.00

Long Bond Paper 3 170.00 510.00

Short Bond Paper 3 108.00 324.00

Total 3,546.00

Table 3.5 List of Cleaning Materials

Item Quantity Unit Total Cost

Broom and Dust Pan 3 230.00 690.00

Feather Duster 2 279.00 558.00

Garbage Bags 5 68.00 340.00

Detergent Powder 3 348.00 1,044.00

Trash Can 2 479.00 558.00

Mop 2 321.00 642.00

Total 3,832.00
 Waste Disposal System

In compliance with the Ecological Solid Waste Management Act of 2000 (Republic Act

No. 9003), manufacturing of Keyxtension will cooperate and comply with the right waste

disposal to hold the cleanliness of the enterprise and the environment. It will make certain right

waste segregation with the aid of using separation of biodegradable and non-biodegradable to

prevents unwanted contamination, as well as in the other part of the building. Daily trash will be

collected once every two days by the City’s garbage truck. The waste will be collected by the

garbage collector as per schedule. The excess wires, plastic and rubber materials will be sold and

dispose to the junk shop as the wires are contained copper and aluminum that is highly

recyclable materials also the plastics and rubbers. The business will assist to make use of

environmentally-sound techniques to maximize the utilization of valuable resources and

encourage resource conservation. Waste disposal is a totally vital element in retaining the

cleanliness and orderliness of the premises.

Direct Labor Requirements

Direct labor refers to the employees and temporary staff who work directly on a

manufacturer's products. Below are the lists of direct labors with corresponding salary and job

qualifications.

Position No. Of Employees Salary Job Qualifications

Production Supervisor 1 17,680 • Bachelor’s Degree in

Business Related Field

 • 2+ years operations

experience

• Working knowledge of

Microsoft Office suite (particularly

Excel)
Production Staff 8 11,570 • High school diploma

• 2+ years’ experience

working in a warehouse and

• Able to multi-task in a

fast-paced warehouse environment

• Electrical Installation and

Maintenance NC II in TESDA.
Quality Control Staff 2 12,350 • Master’s Degree in

Manufacturing Engineering.

• 4 years in quality control

or quality assurance position.

Maintenance /technical 2 9,750 • TESDA Graduate of

Staff automotive

• Passer of NCII

• Have at least 2 years’

maintenance experience
Marketing Supervisor 1 17,680 • Male/Female

• With at least 2 years’

supervisory experience.

• Graduate of BSBA major

in marketing or related course.

• With at least have 3 years’

experiences in marketing field.

Marketing and Sales Staff 2 9,750 At least high school

graduate.
 • With sales and driving

experience.

• Valid professional driver’s

license.

GROUP 11-BSAIS 3C

LEADER: Angelica Tubo- 15/15

MEMBERS: John Mark Bulahan-15/15

John Cesar Biaño-15/15