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CHAPTER 5
PRODUCTION PLAN

 Method
o Production Process

RAW MATERIALS

MERGE ALL MATERIALS

NEEDED

POLISH THE FINISHED

PRODUCT

DISPLAY

PACKAGING

DELIVERY
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Procedures: Acshellsories

Step 1: Have a play with design, our pearl was slightly larger than the mauve bead so we put that in the
center to give a more balanced shape.

Step 2: Thread a bead on to an eye pin and make a loop, do this with all beads and then link them
together. Add a 4mm jump ring to all the charms that will dangle from the earring and fix them
to the last loop using a 5mm jump ring.

Step 3: Now add your small beads – we went for 3 small beads per link. Add each bead to a head pin and
make a loop. Fix these beads onto the main earring.

Step 4: Fix the earring hook to the main earring with a 4mm jump ring

Procedures: Shellvenirs

Step 1: Clean shells in a 10% bleach solution. Rinse with cool water and let dry.

Step 2: Cut up the paraffin block into smaller chunks with a sharp knife. Melt them in the top of the
double boiler by heating the water below to a slow simmer. Use the paraffin as is, or you may
wish to add bits of colored wax for different color combinations. This is a great way to use up
your old candle stubs. Experiment with color blends, but remember that the wax will be a shade
darker when it dries.

Step 3: Cover a steady surface with plastic or newspapers. Balance one of the shells on a small cup and
slowly pour in the melted wax. Immediately place the wick and wick holder in the center of the
shell. Leave wax to cool for at least 30 minutes so all the wax will harden fully.

Step 4: Light up and enjoy your beautiful sea shell candles!

o Store Facility Layout (Compress your pictures- layout is too big)

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o Production Capacity per day (revise this one- copy sample provided)

Shell Not Predicted

Month Shell Predicted Shell Net Cumulative

January 46 26 26

February 21 21 47

March 30 30 77

April 40 40 117

May 66 66 184

June 46 66 250
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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 (no machine?)

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 Materials (matrix)
o Cost of Direct and Indirect Materials

Materials Price/ Unit

Shells PHP 80.00
Stick Glue PHP 5.00
Strings PHP 50.00
Keychain/ Lock PHP 25.00
Designs (beads, glitters) PHP 78.00
Total PHP 238.00

Sample only
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

Needle Php 20.00 1 Php 20.00

Meter Stick Php 15.00 1 Php 15.00

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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

o Raw Materials Availability

We can buy our materials at Gaisano Grand Mall of Panabo and at Centromere.

 Manpower
o Labor Force (direct and indirect)

Direct Labor Indirect Labor

Staff/ crew Managers

Supervisor

o Cost of Labor Matrix

No. of Personnel Salary Shifts

8:00 am – 2:00 pm
10 personnel PHP 9, 000/ person
2:00 pm – 8:00 pm

o Labor Availability

Since our business is located at Panabo City we will be hiring personnel who lives anywhere at
Panabo.

o Labor Productivity (shifts per personnel)

No. of Personnel Shifts

5 persons 8:00 am – 2:00 pm
5 persons 2:00 pm – 8:00 pm
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 Summary of Production (convert this to table)

Total Materials - PHP 258. 00

Salary of Personnel - PHP 90, 000. 00
permonth
Operating Expense - PHP 30, 000. 00

Total - PHP120, 238. 00

 Operating Expenses

Total of all operating Expenses: PHP 30,000. 00

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