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CHAPTER I

THE PROBLEM/BACKGROUND OF THE STUDY

Introduction

According to the World Health Organization (WHO), about 3.4 million

people die annually from water-related diseases. About a million Filipinos get

sick with water-borne diseases yearly. And these are diarrhea cases alone.

They don’t include other water-borne disease like amoebiasis, cryptosporidiosis

and cholera. These problems are accredited to the poor water system in the

Philippines. Even in the capital Manila, only about three fourths of the

population receives piped water from the municipal authority. Outside Manila

far fewer people have access to clean water distribution. In both locations,

these families must find alternate water sources if they are to avoid cholera

epidemics and other health problems spawned by the foul, contaminated water

available in their neighborhoods. In the provinces, the scenario is worse. Some

people rely on wells or even on rivers for their supply of water for their daily

consumption. Amidst this uncertainty, a solution has appeared in the thousands

of water refilling stations that now dot the Philippine landscape. These shops

began as privately-run community sources, where consumers would bring

containers and fill them for a per-gallon fee that is a small fraction of

commercially bottled water’s cost. Demand is high that most stores now offer

home delivery for regular customers. Most shops produce between 3,000 and
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12,000 liters of water per day. Typically, the supply comes from the pipes of

municipal concessionaires. Entrepreneurs invest in treatment equipment and

further purify their product before sale. Nowadays, bottled water has

established a major foothold in the Philippines. With such an intense

competition, how do businesses cope up with the pressure? This is what the

researches of this study would like to unveil. In the course of this study, the

researches aim to discover and compare operational strategies employed by

these water refilling stations and how much they got on their monthly income.

This study also tackles the safeties of processes used by Water refilling stations

in the Philippines specifically on the area of Old Albay, Legazpi City, on the

processed water it sells to its customers. The researchers choose this topic

since nowadays, as the demand for cleaner water becomes higher, the price of

household water purifiers and bottled water has become prohibitive. Water

refilling stations managed by private entrepreneurs offer a cheaper and more

convenient solution to the public’s drinking water needs than bottled water or

the use of household filters. The demand at the water refilling stations sell

processed water is now increasing. The quality of filtered water conforms to the

national standards for drinking water and is even better than the quality of water

produce by traditional water supply systems in terms of removed impurities.

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Statement of the Problem

This study aims to analyze the operational performance of two Purified

Water refilling station located in Old Albay. Specifically, it sought answer to the

following questions.

1. What is the profile of these water refilling stations in terms of:

1.1 Initial Investment

1.2 Mission and Vision

1.3 Years of operation

1.4 Type of water product they sell

1.5 What are the common problem they encountered

2. What is the processes they do to make a safe drinking water?

3. What is their monthly operating expenses?

4. What is their monthly gross income?

5. What is the level of general acceptability of the product along:

4.1 Service

4.2 Product

Scope and Delimitation

This study is focused on the operational performance and profitability.

The researchers will conduct an interview to the 2 selected Water refilling

station in the vicinity of Old Albay. The results of this study will be applicable to

the consumers and to those entrepreneurs who just started their businesses.
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This study is limited only in knowing the profitability and operational

performance, including the quality of product sold and service they provide.

Significance of the study

The development of this study as a practical application of business

and management will be useful in. Specifically, the study is beneficial to the

following:

Consumers. Have knowledge and awareness as to the operation and

status of the said business.

Management. This study will aim to aid the management to enhance

their operation and assess their current year status.

Market Analysts. With the progression of the study, market analysts will

be benefitted which could contribute to their existing related data.

Business Entities. Results can be used as their basis in designing their

marketing plan.

Future Researchers. This research will serve as a related study which

will provide data that may be undertaken in future.

CHAPTER II
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REVIEW OF RELATED LITERATURE AND STUDIES

This chapter is a presentation the related literature and studies through

and in-depth search done by the researchers. This will also present the

synthesis of the art, theoretical and conceptual framework to fully understand

the research to be done and lastly the definition of terms for better

comprehension of the study.

Water Filtration

Water filtration is a general term that refers to any system or process that

is used to filter out particles and pollutants from water. It doesn't necessarily need

to be a purifier to make the cut. Anything that removes any amount of particles,

sediment, bacteria and removes the chlorine taste, can be called water filtration.

If it has a filter of any type, it's a filtration system.

In the study of Gary Logsdon (2015) entitled “Microbiology and Drinking

Water Filtration” he assessed filtration remove suspended matter such as clays,

algae, suspended matter in general, and asbestos fibers from water. Filtration

studies related to removal of microorganisms have generally been motivated

by the need to learn about the removal of pathogens or indicator organisms,

or both. Reducing the risk of waterborne disease has been a goal of

microbiologically related filtration

Demands in WRS
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Demand is an economic principle referring to a consumer's desire and

willingness to pay a price for a specific good or service. Holding all other factors

constant, an increase in the price of a good or service will decrease demand,

and vice versa.

According to Josephine Salillas (20One of the fast expanding business

in Manila, and in most Metro cities nationwide, is the water refilling station. It’s

mushrooming on every street corner, because a lot of people in urban areas

prefer to get their drinking water from these water stations, it’s simply clean and

safe to drink. Over the years, as the demand for cleaner water becomes higher,

the price of household water purifiers and bottled water has become

prohibitive.

Human resources

Human Resources is also the organizational function that deals with the

people and issues related to people such as compensation and

benefits, recruiting and hiring employees, onboarding employees, performance

management, training, organization development and culture, and advising

senior staff about the impact on people of their financial, planning, and

performance decisions on the people in the organization.

Magtibay (2011) noted that to operate the water store, about five

employees are needed. One manager to oversees store operations at least 4

hours a day; 1 accountant/bookkeeper who will makes financial statement of

business operations; 1 administrative assistant who will log and handle cash
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sales and purchases; 1 front liner who will accept and refill containers of

customers; 1 technical assistant who will maintain and run the machine; and 1

driver/delivery man who will transport refilled containers to customer’s home

Institutions and Policies

There are agencies involved for a water refilling station to operate. They

monitor these businesses if they are following the required standards that

benefits both consumers and the business.

In the study of B.B Magtibay (2018) entitled “Water Refilling Station: an

alternative source of drinking water in the Philippines” He enumerated all

agencies directly involved in the establishment operation of water refilling

stations, these are:

• The Department of Health (DOH). DOH is the main agency responsible for

protecting the health of the people. The Sanitation Code of the Philippines

mandates DOH in protecting drinking water quality. Consequently, DOH issues

implementing rules and regulations prescribing sanitary standards for water

supply systems, including water refilling stations.

• The Center for Health Development (CHD) is the regional branch of DOH. Its

main function is to provide technical assistance to local government units and

to monitor DOH programme implementation which includes water quality and

sanitation standards. For water refilling stations, CHD is mandated to issue

initial and operational permits.

• The Local Government Units (LGUs) are mandated by Presidential Decree

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(PD 856) to issue sanitary permit, sanitary clearance, health certificates,

certificate of potability, drinking water site clearance and closure order (if

necessary) and to conduct sanitary inspection of WRS.

• The Water Quality Association of the Philippines Inc. (WQAP) is an

organization of private firms who are engaged in the manufacture, sale, and

distribution of water refilling station equipment and supplies, as well as water

treatment and purification equipment and technology for household,

institutional, commercial and industrial applications. About 85 percent of its 250

members operates water refilling stations.

• Association of Water Refilling Entrepreneurs (AWARE) concentrates on

resolving business management issues of its members.

Presidential Decree No. 856 (PD 856) or the Sanitation Code of the Philippines

is the main law requiring all establishments to comply with existing sanitary

standards to protect public health. Guidelines for operating a water refilling

station are indicated in the Supplemental Implementing Rules and Regulations

on Water Supply of PD 856 issued in 1999.

Water quality Monitoring

Water Quality can be defined as the chemical, physical and biological

characteristics of water, usually in respect to its suitability for a designated use.

According to MWSS Regulatory Office (2019) they enumerated all the

tests that needs to undergo and pass for a safe drinking water.

Source water and product water are subject to regular monitoring by the local
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health office. The national standards for drinking water contains 54 parameters

that must be complied with. Only DOH-accredited laboratories are allowed to

conduct water testing and analysis. The frequency of monitoring is as follows:

• Bacteriological quality - at least monthly

• Physical quality - at least every six (6) months

• Chemical quality - at least every six (6) months

• Biological quality - at least once a year

• Monitoring of radioactive contaminants shall be done only if there is significant

input of radiation from the surrounding environment.

costumer or the standards of the consumer price will not be the problem as long

as there is a quality to the products that these businesses sells.

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Water source
City
CityHealth Office
Health Office
monitoring
monitoring

Water Filtration

Product Water Water Analysis

Empty Container

Filling and Capping

Consumers

Refilled Container

Theoretical Framework

Figure 1

(Water Production Process)

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Chapter 3

RESEARCH METHODOLOGY

This chapter will present the method, procedures and tools that the

researchers will use in evaluating and analyzing the data that will be gathered.

This chapter also includes what sources will be used in order to find the data

needed in the study. This will also include the respondents of the study, what

research instrument and what statistical treatment that will be used.

Research Method

The researchers will use the descriptive research method in conducting

the study. Descriptive research method describes the characteristics of a

population or phenomenon being studied. The method does not make accurate

predictions, and does not determine cause and effect. The method is chosen

to gather data with the use of survey questionnaire to be provided for the

respondents. The researchers believe that the method will suit the aims of the

study in collecting data.

Sources of Data

The study will consider the primary and secondary sources of data. The

primary data will be from the owner or manager of the selected purified Water

Refilling Station in Old Albay that will be obtained through the survey
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questionnaire. The secondary data will come from books unpublished materials

and internet that can contribute to the present study.

Population of the Study

The respondents of the study will be the Selected Water Refilling Station

in Albay and some of it’s customers. They will provide data through the survey

questionnaire. The survey questionnaires will be the given to them to obtain the

necessary information that is needed in the study if the questionnaire could not

provide all the needed information, the researchers will conduct an interview.

Research Instrument

The main instrument that will be used to gather data will be the survey

questionnaire. It will intend to determine what operational management

practices are being adopted by the business in the area of Goods and Services.

With the management practices that will be determined, what problems the

business encounters and what possible actions the management is undertaking

in order to address the problems. The survey questionnaire will consist of three

(3) parts: the operations practices, problems encountered, and the actions

undertaken by the management to address the problems encountered.

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Data Gathering Procedure

The researcher will prepare a request letter to be addressed to the selected

Water Refilling Station in Albay. The researchers will have a prior visit to the

selected respondents in order to ask permission and look for the authorized

person whom the letter should be addressed. After the visit, the researchers will

prepare the letter to be addressed to the specific owner or manager to ask for

approval of the request to conduct the study. Upon the approval of the letter,

the researchers will then give the survey questionnaire to the respondents. The

researchers will personally hand-in the questionnaire and will administer the

questionnaire to ensure that it will be answered correctly and accurately. The

researchers will have a follow up questions, if necessary, from the answers of

the respondents. The answers of the respondents will be the gathered data and

will be analyzed in order to come up with the findings, conclusions and

recommendations.

Statistical Treatment

The data collection in this study will subject to certain statistical treatment.

The weighted mean will be used as the statistical treatment of the study. This

statistical treatment will be used to determine the average responses of

different options provided in the various section of the questionnaire.

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SCALE RANGE INTERPRETATION DESCRIPTION

90% - 100% of the

3 2.50 – 3.00 Always Practiced practices are

performed

50% - 89%o f the

2 1.50 – 2.49 Sometimes Practiced practices are

performed

1%- 49% of the

1 1.00 – 1.49 Never Practiced practices are

performed

SCALE RANGE INTERPRETATION DESCRIPTION

90% - 100% of the

3 2.50 – 3.00 Always Encountered problems are

encountered

50% - 89% of the

Sometimes
2 1.50 – 2.49 problems are
Encountered
encountered

1%- 49% of the

1 1.00 – 1.49 Never Encountered problems are

encountered
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