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Table of Contents
CHAPTER 1: SUMMARY OF THE STUDY..............................................................................1
NAME OF THE FIRM...................................................................................................................1
MISSION..................................................................................................................................1
VISION.................................................................................................................................... 1
LOCATION............................................................................................................................... 2
BRIEF DESCRIPTION OF THE STUDY...................................................................................3
OBJECTIVES OF THE STUDY:....................................................................................................3
PROJECT SUMMARY MARKET FEASIBILITY.......................................................................4
MANAGEMENT FEASIBILITY...................................................................................................... 4
TECHNICAL FEASIBILITY.......................................................................................................... 5
FINANCIAL FEASIBILITY........................................................................................................... 5
SOCIO-ECONOMIC FEASIBILITY................................................................................................ 6
CHAPTER 2: BACKGROUND OF THE STUDY.......................................................................7
OBJECTIVES OF THE STUDY:................................................................................................... 8
MARKETING ASPECT............................................................................................................... 8
TECHNICAL ASPECT................................................................................................................ 8
MANAGEMENT ASPECT............................................................................................................9
FINANCIAL ASPECT................................................................................................................. 9
SOCIO-ECONOMIC ASPECT......................................................................................................9
DEFINITION OF TERMS.........................................................................................................10
SCOPE AND LIMITATION OF THE STUDY...........................................................................10
CHAPTER 3: MARKETING STUDY........................................................................................11
INDUSTRIAL PROFILE AND HISTORY....................................................................................... 11
OBJECTIVES OF THE STUDY:................................................................................................. 13
METHODOLOGY.....................................................................................................................13
RESEARCH INSTRUMENT.....................................................................................................13
SAMPLE SIZE..........................................................................................................................14
POPULATION..........................................................................................................................14
SURVEY RESULTS:................................................................................................................16
DEMAND..................................................................................................................................26
ANNUAL DEMAND FOR THE PAST YEAR.................................................................................26
PROJECTED DEMAND...........................................................................................................27
SUPPLY...................................................................................................................................28
PROJECTED SUPPLY............................................................................................................29
DEMAND AND SUPPLY GAP ANALYSIS.............................................................................31

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PROJECTED SALES AND MARKET SHARES.....................................................................31


MARKETING STRATEGIES AND PROGRAM.......................................................................32
PRODUCT STRATEGY..............................................................................................................32
NAME AND IMAGE OF THE PRODUCT......................................................................................33
PRICING STRATEGY...............................................................................................................36
PROMOTIONS/ADVERTISING STRATEGY..................................................................................37
PLACEMENT STRATEGY.........................................................................................................38
CHAPTER 4: TECHNICAL STUDY.........................................................................................39
OBJECTIVES OF THE STUDY...................................................................................................39
DESCRIPTION OF THE PRODUCT.............................................................................................40
FEATURES............................................................................................................................ 41
MACHINERY AND EQUIPMENT.................................................................................................42
PRODUCTION EQUIPMENT......................................................................................................43
PERSONAL PROTECTIVE EQUIPMENT......................................................................................44
FURNITURE AND FIXTURES.................................................................................................... 45
OTHER SUPPLIES.................................................................................................................. 48
VENTILATION.........................................................................................................................49
OFFICE SUPPLIES..................................................................................................................50
PRODUCTION SUPPLIES.........................................................................................................54
PACKAGING MATERIALS........................................................................................................56
MANUFACTURING PROCESS...............................................................................................57
DESCRIPTION OF THE PROCESS........................................................................................58
PROGRAM EVALUATION AND REVIEW TECHNIQUES.....................................................60
PRODUCTION OF FOLDABLE GRILLER WITH STOVE......................................................61
TRADITIONAL GRILLER.......................................................................................................... 61
KOREAN GRILLER................................................................................................................. 62
STOVE.................................................................................................................................. 63
CHARCOAL DRAWER & OIL CATCHER....................................................................................64
FABRICATION OF ASH DRAWER.............................................................................................65
STAND.................................................................................................................................. 66
HANDLES.............................................................................................................................. 67
ASSEMBLY OF FOLDABLE GRILLER WITH STOVE....................................................................68
STANDARD OUTPUT.............................................................................................................69
PLANT CAPACITY..................................................................................................................69
PRODUCTION SCHEDULE....................................................................................................70
DIRECT LABOR REQUIREMENTS........................................................................................70
PLANT LOCATION..................................................................................................................71
PLANT LAYOUT......................................................................................................................72
UTILITY....................................................................................................................................73
WASTE DISPOSAL.................................................................................................................73

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CHAPTER 5: MANAGEMENT STUDY...................................................................................74


OBJECTIVES OF THE STUDY:...................................................................................................74
FORM OF BUSINESS OWNERSHIP...........................................................................................74
CAPITALIZATION.................................................................................................................... 75
ORGANIZATIONAL STRUCTURE...............................................................................................75
MANPOWER JOB DESCRIPTION REQUIREMENTS.....................................................................76
POSITION: FINANCE AND ADMINISTRATIVE MANAGER.............................................................76
Job Description:..............................................................................................................76
POSITION: PRODUCTION OPERATOR...................................................................................... 77
Job Description:..............................................................................................................77
GENERAL EMPLOYEE REQUIREMENTS............................................................................78
ORGANIZATIONAL POLICY..................................................................................................80
EMPLOYEE’S CONDUCT......................................................................................................... 80
OFFICE HOURS AND ATTENDANCE POLICY.............................................................................81
ADMINISTRATIVE POLICY....................................................................................................... 82
SWOT ANALYSIS...................................................................................................................83
STRENGHTS...........................................................................................................................83
WEAKNESSES........................................................................................................................83
 QUALITY PRODUCT........................................................................................................83
 INNOVATIVE PRODUCT..................................................................................................83
 COMPETITIVE COMPANY...............................................................................................83
 EFFECTIVE AND EFFICIENT EMPLOYEES...................................................................83
 LACK OF EXPERIENCE..................................................................................................83
 LACK OF MARKETING EXPERTISE..............................................................................83
 MINIMUM SALES..............................................................................................................83
 STARTING COMPANY.....................................................................................................83
OPPORTUNITIES....................................................................................................................83
THREATS.................................................................................................................................83
 COMPANY EXPANSION..................................................................................................83
 ONLINE ADVERTISEMENT.............................................................................................83
 WAGE RANGE FOR MARKETING..................................................................................83
 HIGH COMPETITION IN THE MARKET..........................................................................83
EMPLOYEE COMPENSATION...............................................................................................84
OVERTIME PAY RATES.......................................................................................................... 84
13TH MONTH PAY................................................................................................................. 84
EMPLOYEE BENEFITS...........................................................................................................85
SSS (SOCIAL SECURITY SYSTEM).........................................................................................85
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PHILHEALTH...........................................................................................................................85
PAG-IBIG/HDMF.................................................................................................................86
PATERNITY LEAVE................................................................................................................. 86
SOLO PARENT LEAVE........................................................................................................... 86
LEGAL REQUIREMENTS.......................................................................................................87
CHAPTER 6: FINANCIAL STUDY..........................................................................................89
OBJECTIVES OF THE STUDY:..............................................................................................89
MAJOR FINANCIAL ASSUMPTIONS..........................................................................................90
PROJECT COST.....................................................................................................................91
SOURCE OF FINANCING......................................................................................................... 91
RAW MATERIALS INVENTORY.................................................................................................92
ACCOUNTS RECEIVABLE........................................................................................................92
SUPPLIES EXPENSE...............................................................................................................93
PROPERTY, PLANT, AND EQUIPMENT..................................................................................... 94
ACCOUNTS PAYABLE............................................................................................................ 94
SALES................................................................................................................................ 95
RAW MATERIALS USED......................................................................................................... 95
DIRECT LABOR COST............................................................................................................ 95
STATEMENT OF COST OF GOODS MANUFACTURED.................................................................96
STATEMENT OF COST OF SALES............................................................................................96
SALARIES AND WAGES..........................................................................................................97
UTILITIES EXPENSE............................................................................................................... 97
DEPRECIATION...................................................................................................................... 97
REPAIR AND MAINTENANCE...................................................................................................98
INCOME STATEMENT..............................................................................................................98
STATEMENT OF CHANGES IN EQUITY..................................................................................... 99
STATEMENT OF FINANCIAL POSITION...................................................................................100
STATEMENT OF CASH FLOWS..............................................................................................101
PRODUCT COSTING............................................................................................................. 102
CHAPTER 7: SOCIO-ECONOMIC STUDY...........................................................................103
OBJECTIVES OF THE STUDY:............................................................................................... 103
CONTRIBUTION TO THE PHILIPPINE ECONOMY......................................................................103
EMPLOYMENT GENERATION.................................................................................................104
SOCIAL DESIRABILITY..........................................................................................................104
PEOPLE.............................................................................................................................. 104

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Chapter 1: Summary of the Study

Figure 1. Company Logo

Name of the Firm

ADAR Manufacturing is a newly established company dedicated and specialized in

manufacturing a highly innovative and quality griller and stove in one. The name of the

company was derived from the proponents’ surnames first letter, "A" stands for Alcaraz,

"D" for Del Castillo, “A” for Alviar, and "R" for Robis.

Mission

ADAR Manufacturing is aiming to build, develop and innovate quality products at a

competitive price that can provide benefit to customers and to strive with utmost integrity

to achieve an excellent customer satisfaction

Vision

The vision of ADAR Manufacturing is to be a premier manufacturer and one of the

most prominent manufacturing groups in the country of griller by providing an excellent

quality product to consumers of the Philippines.

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Location

Figure 2. Vicinity Map of ADAR Manufacturing

The company covers an area of 1,224 square meters which is located at WH6

Zara Compound, Magsaysay Road, Brgy. San Antonio, San Pedro City, Laguna. The

site of the company was selected due to its geographical location and its accessibility to

different suppliers. Other factors are the following:

1. In terms of delivering raw materials and other supplies, the location has a wide road

and is very convenient to various suppliers.

2. The location is close to a major road or highway. In that regard, it is well connected

to other municipalities such as Binan, Muntinlupa, and Sta. Rosa City, as well as other

nearby cities;

3. Furthermore, the location is convenient for the company's prospective product

distributors, which include Shopwise Pacita, Savemore San Pedro, and Robinsons South

Galleria.

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Brief Description of the Study

The grill is usually used by Filipinos when someone wants to cook with charcoal, it is

an extra tool or equipment when there is no use for cooking with gas. The grill is usually

big, heavy and can't be carried anywhere to be used wherever you want and there are also

those who just make their own grill or DIY grill. The foldable grillers with stove or further

improved and made grilling easier. It has three types of cooking that use charcoal, the first

has a stove that can be cooked using pots, pans and others commonly used in ordinary

cooking. Second is the Korean grill. Filipinos now love the style of grilling of Koreans. It is

called samgyupsal.

This grill pan is used to cook small meats while eating. The third is the traditional grill,

ordinary grilling of the Filipinos. Each grill is a type of box measuring 17 inches long and 12

inches wide and 5 inches high. It also has a box inside that will hold charcoal and another

box that will drop the ashes from the charcoal. When it comes to the back of the box, it has

railings for air to enter and not to lose the burning charcoal. The foldable grillers with stove

are all made of stainless steel to prevent rusting because it is about food the cooking needs

to be clean. This product is made for people who love grilling and samgyupsal that can be

taken anywhere. It is small, folding and easy to carry and it also does not take up space in

the area where it will be used.

Objectives of the Study:

The objective of this study is to determine and identify the feasibility of Foldable

Grillers with Stove and further recommend the product for commercial use. There are

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generally five (5) major components of this study, namely: Marketing, Technical,

Management, Financial, and Socio-economic desirability.

Project

Summary

Market

Feasibility

The market feasibility describes the current and future potential competitors, sales,

current and prospective buyers. This is an important aspect to identify whether there is

enough demand for the proposed product.

Based on the survey conducted by the researchers, ordinary griller and electric griller

are considered as the nearest competitors of the foldable grillers with stove. According to

the researchers' survey, the traditional griller is the closest competitor to the Foldable

Griller with Stove. Foldable Griller with Stove has a market acceptability of 34.1 %, which

means that 136 out of 398 respondents are willing to buy it. Due to the high demand for

high-quality grillers in the market, it is a marketable product.

Management Feasibility

A well-designed management system will ensure the long-term success of a new

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business. The right business form is decided by this characteristic, which the researchers

determined to be a general partnership organization. Because of the company's location in

San Pedro City, Laguna, the company will establish a legal corporation to recruit and train

employees, and the provincial compensation rate will be used.

ADAR Manufacturing is a partnership in which the earnings and losses of the

company are shared among the partners. Each of the four (4) partners chose to split the

start-up funds evenly between them. To meet the company's needs, the corporation formed

various divisions such as Production, Accounting, Marketing, and Production/Manufacturing.

Employees will run the company and work Monday through Friday from 8:00 a.m. to 5:00

p.m. In addition, the company must comply with all local and regulatory regulations.

Technical Feasibility

Having an organized process of manufacturing is a priority for most companies

especially if the company is a newly established. To produce a quality product machines

such as Laser Cutting Machine, Bending Machine, Welding Machine, Grinder Machine are

essential to manufacture the foldable grillers with stove and its mechanisms.

The base of the proposed product is made up of stainless metal sheet, most of the

components of the product are made up of stainless metal sheet that will avoid the

product from rusting and maintain the durability and quality over the years.

Financial Feasibility

ADAR Manufacturing must have strong financial backing and be able to finance its

operations at a fair cost. Because the four (4) partners will each contribute 25%, they may

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both invest in cash using their own funds.

The researchers determine the financial needs of the company by determining the

required starting capital, determining the cost and values of manufacturing the product and

running the business, and examining the capabilities and potential of the company.

ADAR Manufacturing's profitability is measured by financial analysis and the

evaluation of the return on invested capital. These calculations are based on marketing,

management, and technological aspects, as well as potential profitability stated in pesos.

Financial reports such as an income statement, a balance sheet, and a cash flow statement

are required by the company.

Socio-Economic Feasibility

The study's socioeconomic component focuses on the company's economic and

environmental participation activities. Because ADAR Manufacturing is a new firm, it will help

the local community by giving financial assistance for unemployed individuals to find work. In

addition, the corporation will assist the government by paying annual taxes for government

finances.

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Chapter 2: Background of the Study

Grilling is a form of cooking that involves dry heat applied to the surface of the food.

Grilling usually involves a significant amount of direct heat and operates with the use of

charcoal. People use griller in various gatherings like a family reunion, outing, camping, and

other activities. Nowadays, a lot of people are patronizing grilled foods, particularly Korean

grill foods. This griller is commonly used for those people who like grilling foods wherever you

go. This foldable griller is installed with a stove, Korean grill, and traditional grill, which

operate with charcoal. The product can perform various functions at the same time as a high

possibility. We have presented the design of a foldable grillers with stove in several ways to

be effectively adopted.

In addition, the foldable grillers with stove have drawers for charcoal in each

griller and stove. It is a foldable product where customers can quickly transfer

and move wherever they want. It also has supporting stands to elevate the

product from the ground and a ventilation grill at the back of the drawers that

the smoke can quickly come out. The product used to create with high ease and

speed to produce the product cost-effectively makes the inventory less

expensive. The requirement for developing the portable griller and stove is vital

in using basic tools to perform more. This product can help reduce costs and

improve production and the skill at the required level.

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Objectives of the Study:

The main objective of the study is to determine the feasibility of manufacturing the

Grove in the city of San Pedro, Laguna in terms of Marketing, Technical, Management,

Financial and Socio-Economic Aspect.

Marketing Aspect

 To determine the total number of potential markets

 To formulate and develop strategies in relation to marketing programs

 To identify and forecast the present and future demand of the product

 To determine the acceptability off the product to the customers

 To determine the major factor affecting the demand of the product

Technical Aspect

 To determine the product's functional usability

 To establish standard operating procedures for the product's manufacture.

 To measure and calculate the overall cost and price of the materials, equipment, and

supplies that will be consumed in the production and office.

 To determine the required capacity, production schedule, number of shifts per day,

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and daily working hours.

 To plan the company's location along with the layout of the facility.

 To determine the company's technical support and other supplies.

 To ensure that production waste is properly discharged.

Management Aspect

 To provide each employee with an accurate job description

 To establish ADAR Manufacturing's guidelines and standards

 To improve worker production efficiency while complying to the company's rules and

regulations

 To establish unity, participation, and empowerment for all employees

 To maximize the performance of a company

Financial Aspect

 To figure out how much capital you'll need to launch your new business.

 To determine the costs and values associated with manufacturing the product and

operating the business.

 To conduct a financial analysis to determine ADAR Manufacturing's capabilities and

profitability.

 To determine the return on investment (ROI).

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Socio-Economic Aspect

 To determine the company's economic engagement activities.

 To determine the company's environmental engagement activity.

 To create a budget contribution to the local economy by paying taxes.

 To offer consumers with a functional design that will allow them to get the most out of

the product.

Definition of Terms

Bolt – A bolt is a long metal object which screws into a nut and is used to fasten things

together.

Korean pan – It is a type of grill pan originated at Korean which is non-greasy and suitable

for frying and grilling.

Latches Lock – A latch is a lock on a door which locks automatically when you shut the

door, so that you need a key in order to open it from the outside.

Loose Pin Hinger – A loose pin butt hinge is a door hinge that has a center pin that can

be easily removed from the barrel to separate the hinge. 

Metal sheet – Sheet metal is metal formed into thin and flat pieces. It is one of the

fundamental forms used in metalworking and can be cut and bent into a variety of different

shapes. 

Samgyupsal – is a well-known grilling method in the Korea and eventually Philippines has

patronized this grilling method due to the adaptation of Korean drama, music and culture.

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Shafting – Shafting, also known as ‘Turned Ground and polished’ shafting, refers to round

bars made with fine precision and high-quality steel.

Stainless - resistant to discoloration, discoloration resulting from corrosion; rust-resistant.

Scope and Limitation of the Study

The scope of this study is to determine the feasibility of Foldable Grillers with Stove.

This feasibility study entitled “Manufacturing of Foldable Grillers with Stove” is restricted to

city of San Pedro, Laguna and will be based on market, management, technical, financial

and socio-economic aspect. The proponents have limited its scope to three hundred

ninety-eight (398) respondents from different barangays of the city. The study is

conducted from August 2021 up to December 2021

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Chapter 3: Marketing Study

This study analyses the location considering the huge space available for future

expanding and development, with the additional consideration for the relief of the

transportation of materials, products, and employees with regards to travel distance. It is also

easily reached or approached because it is near the residents which can ensure high

demand rate in the company. With this strategy, our company can acquire more profits,

investments, and can be easily advertised to the market that can be used for continuous

improvement of our services and products. For future development, the researchers are

aiming to be the first or pioneering manufacturer of Foldable Griller with Stove which will

serve as a benchmark of this new idea.

Industrial Profile and History

The history of grilling begins shortly after the domestication of fire, some 500,000

years ago. The backyard ritual of grilling as we know it, though, is much more recent. Until

well into the 1940s, grilling mostly happened at campsites and picnics. 

In suburban Chicago, George Stephen, a metalworker by trade and a tinkerer by habit,

had grown frustrated with the flat, open brazier-style grills common at the time. Once he

inherited controlling interest in the Weber Bros.

The beginning of grilling can be traced back to the 17 th century when you look at the

Arawak tribe of the Caribbean and South America. These people used sticks to create a

flame over a fire and place the meat on it. They called this method of cooking Barbacoa. This

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idea was adopted by conquerors from Spain, who evolved it until the 18 th century when

people in southeastern America took up the idea. Pigs spent hours roasting over a fire, and

various sauces and different types of wood were used to give different flavors to the meat.

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Korean BBQ and grill have truly come a long way from its ancient tribal origins to the

point of global popularity that it is enjoying today. Given that Korean BBQ is close to all of our

hearts, we believe that it just proper that we take a look back at how Korean BBQ, or at least

the concept behind it, got introduced to the world. Today’s article will briefly feature the

historical origins of Korean BBQ that you probably haven’t heard before.

ADAR Manufacturing is a newly established company that manufactures a high

quality and innovative equipment designed specifically for grilling is the Foldable Grillers

with Stove. The product can provide benefit to consumers by griller with many functions

such as; traditional griller, Korean griller and stove, it all works through the use of charcoal.

It is a multi-purpose type of griller where all the components can work and use

simultaneously. The Foldable Grillers with Stove is distributed to the nearest supermarkets

and respective malls in San Pedro City, Laguna area. Online platforms are the permanent

advertising of the company will be utilized while flyers will be disseminated in San Pedro

City, Laguna area for the span of one (1) year only. The product is made out of stainless

metal sheet. The Grove has three (3) components (2) grillers and (1) stove and each has

drawers for charcoal. The product has three (3) drawers for charcoal with ash catcher. The

two (2) set of the stand is 8 inches tall that support the product for elevation from the

ground and one (1) oil catcher located under the Korean grill pan.

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Objectives of the Study:

 To determine the total number of potential markets

 To formulate and develop strategies in relation to marketing programs

 To identify and forecast the present and future demand of the product

 To determine the acceptability off the product to the customers

 To determine the major factor affecting the demand of the product

Methodology

The appropriate statistical method was utilized by the researchers to obtain the

relevant data and information for this study on the product’s feasibility. This chapter goes

over what kind of research instrument will be used, who will be the respondents, and where

the study will be done. The target market, product details, pricing, and promotion plan that

are required for this study have all been determined.

The researchers used surveys to collect the information required to finish the study.

The data collected must be appropriate and sufficient to meet the research’s aims. The

questionnaire will include ten (10) questions for the respondents to answer. The collected

data will be tallied and summarized.

Research Instrument

In this study, the researcher’s primary instrument will be a questionnaire. It’s a written

questionnaire in which respondents react to a 10-item one-part question that determines the

consumers’ wants and needs. The survey approach is more convenient and easier to use

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than any other method that requires a lot of effort to obtain data.

Sample Size

The respondents are residents of the City of San Pedro, Laguna. The researchers

determined the sample size of the population through Slovin’s formula which is used to

calculate an appropriate sample size from a population .

N
Slovin’s Formula n= 2
1+(N e )

where:
N= Population Size
n = Sample Size
e = Margin of Error (5%)

By substituting the given data,

72,776
𝑛=
1 + 72,776(.05)2

72776
𝑛=
1 + (181.94)

72776
𝑛=
182.94

n = 397.81 or 398 respondents

Therefore, there are 398 households that will come from the various barangays of

city of San Pedro, Laguna as the respondents for conducting this study

Population

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Based on the data given by the City Planning and Development Coordinating Office

(CPDCO), there are 72,776 households and 326,001 residents residing in the city of San

Pedro, Laguna from different twenty-seven (27) barangays on the year 2020. The

respondents of the study are the three hundred ninety-eight (398) residents of the city

chosen randomly and pure random sampling is applied.

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Table 1. Population of San Pedro City, Laguna

Populatio Househol Percenta Responden


Barangay ge ts
n ds
2020 2020 % 2020
Bagong Silang 5,736 1,235 2.26 9
Calendola 3,797 1,070 1.26 5
Chrysanthemum 12,433 2,335 3.77 15
Cuyab 21,422 4,840 6.03 24
Estrella 8,025 1,668 2.76 11
Fatima 6,491 1,939 2.26 9
G.S.I.S 2,828 653 1.01 4
Landayan 33,235 6,981 9.05 36
Langgam 30,946 6,593 8.54 34
Laram 6,536 1,405 2.26 9
Magsaysay 12,793 2,713 3.27 13
Maharlika 5,580 1,415 3.02 12
Narra 2,297 549 1.26 5
Nueva 4,286 1,117 2.01 8
Pacita 1 22,581 4,556 5.78 23
Pacita 2 11,993 2,858 3.77 15
Poblacion 5,771 1,318 2.26 9
Riverside 3,028 724 1.51 6
Rosario 5,911 1,257 2.26 9
Sampaguita 4,941
1,284
Village 1.51 6
San Antonio 59,368 13,746 17.84 71
San Lorenzo 5,800
1,141
Ruiz 1.76 7
San Roque 7,161 1,572 1.51 6
San Vicente 27,561 5,821 8.79 35
Santo Nino 3,892 941 1.01 4
United 5,385
1,583
Bayanihan 1.76 7
United Better 6,204
1,462
Living 1.51 6
Total 326,001 72,776 100 % 39
8

Source: City Planning and Development Coordinating Office

(CPDCO), San Pedro City Laguna

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Survey Results:

Usage of Griller

Figure 3. Consumption of Griller

The figure 3 shows that 71.1% (283 out of 398) of the respondents are eating

grilled food and 28.9% (115 out of 398) of the respondents are not eating grilled food.

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Type of Griller

Figure 4. Type of Griller

The figure 4 shows that 34.1% (136 out of 398) respondents are using standard griller

for grilling. 24.4% (97 out of 398) respondents are using improvised griller. 22.9% (91 out of

398) respondents don’t have griller. 18.6% (74 out of 398) are using electric griller.

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Consumption of the Product

Figure 5. Consumption of the Product

The figure 5 shows that 53.2% (212 out of 398) respondents are using griller twice a

month. 39.5% (157 out of 398) respondents are using griller 3 or more times a month. 7.3%

(29 out of 398) respondents are using griller once a month.

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Familiarization of Korean Grill

Figure 6. Familiarization of Korean Grill

The figure 6 shows that 94.7% (377 out of 398) of respondents are familiar with

Korean grill, 5.3% (21 out of 398) of respondents are not familiar Korean grill.

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Product Feature Valuability

Figure 7. Product Feature Valuability

The figure 7 shows that 39.2 % (156 out of 398) respondents are into all features of

the product. 29.8% (119 out of 398) respondents are into griller. 21.9% (87 out of 398)

respondents are into stove. 9.1% (36 out of 398) respondents are into Korean griller.

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Acceptability of the Product

Figure 8. Product Acceptability

The figure 8 shows that 91.7% (365 out of 398) of the respondents are willing to buy

the Foldable Griller with Stove and 8.3% (33 out of 398) of the respondents are not willing.

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Factors Consider in Buying the Product

Figure 9. Factors Consider in Buying the Product

The figure 9 shows that 48.1% (175 out of 365) of the respondents are considering

the product quality. 22.1% (81 out of 365) of the respondents are considering the

functionality of the product. 15% (55 out of 365) of the respondents are considering the

size/weight of the product and 14.8% (54 out of 365) of the respondents are considering

the conveniency.

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Location for the Market

Figure 10. Location for the Market

The figure 10 shows that 56% (223 out of 398) of the respondents want to

purchase the product on online/social media shops. 32.7% (130 out of 398) of the

respondents are want to purchase the product on malls/supermarket. 11.3% (45 out of

398) of the respondents want to purchase the product on public market.

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Form of Advertisement

Figure 11. Form of Advertisement

The figure 11 shows that 70.6% (281 out of 398) of the respondents are attracted on

online/social media advertisement. 18.6% (74 out of 398) of the respondents are attracted

on television/radio advertisement. 5.8% (23 out of 398) of the respondents are attracted on

newspapers/magazines and 5% (20 out of 398) of the respondents are attracted on

tarpaulin/poster.

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Recommendation of the Product

Figure 12. Recommendation of the Product

The figure 12 shows that 94.2% (375 out of 398) of the respondents are willing to

recommend the Foldable Grillers with Stove and 5.8% (23 out of 398) of the respondents

are not willing.

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Demand

Demand is the relationship of the price and quantity. It refers to the quantity of a

product, commodity or service that can afford at specified price. Determining the past and

present demand of the market to a certain product helps in assessing the market

effectivity.

Annual Demand for the Past Year

Table 2. Annual Demand of Griller for the Past Years

YEA DEMAN
R D
201 9,689
7
201 9,808
8
201 10,00
9 2
202 10,30
0 6
202 10,41
1 1

Source: San Pedro Public Market

Table 3. Number of Projected Consumers in San Pedro City,


Laguna

NO. OF
YEAR PROJECTED CONSUMERS
RESPONDENTS
202 72,776 66,73
1 6

The table above shows the number of projected consumers in San Pedro City,

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Laguna. Computation is done based on the respondents who are using griller. 91.7%

answered yes, thus, the number of projected consumers is determined.

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Projected Demand

The demand of the product is the customer’s desire and willingness to pay for the

product. Computing the demand is essential for it serves as evidence that the proposed

project is feasible and as assurance of a long-term success

Table 4. Projected Demand for the Next Five Years

ACTUAL DEMAND YC (COMPUTED


YEAR
IN UNIT (Y)
X X2 XY
DEMAND IN UNIT)
2017 9,689 1 1 9,689
2018 9,808 2 4 19,616
2019 10,002 3 9 30,006
2020 10,306 4 16 41,224
2021 10,411 5 25 52,055
TOTAL 50,216 15 55 152,590
2022 6 10,625.80
2023 7 10,820.00
2024 8 11,014.20
2025 9 11,208.40
2026 10 11,402.60

The table above shows the computed projected demand for the proposed product

within the area of the target market in the succeeding five (5) years from the present year.

This data will be used as basis for identifying the growth of the market.

*Computed Demand

To get the actual demand, the formula to be used is:

PROJECTED DEMAND = a + bx

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Using the formula below, the value of a and b will be determined:

𝒂 = (∑ 𝑥2∗∑𝑦)− (∑ 𝑥∗∑ (n∗∑ 𝑥𝑦) − (∑


𝒃= 𝑥∗∑ 𝑦) (n∗∑𝑥 2)
𝑥𝑦) (n∗∑𝑥 2) − (∑
2
)2 − (∑ 𝑥)

(55∗50,216) −
=
(15∗152,590) (5∗152,590) − (15∗50,216)
(5∗55) − (15)2 = (5∗55) − (15)2

(2,761,880) −
=
(2,288,850) =
(762,950) − (753,240)
(275)−(225)
(275)−(225)

=
473,030 =
9,710
50 50

𝒂. = 9,460.60 𝒃 = 194.20

Therefore,

Y2022 = 9,460.60+ (194.20∗ 6) = 10,625.80

Y2023 = 9,460.60+ (194.20∗ 7) = 10,820.00

Y2024 = 9,460.60+ (194.20∗ 8) = 11,014.20

Y2025 9,460.60+ (194.20∗ 9) = 11,208.40

Y2026 = 9,460.60+ (194.20∗ 10) = 11,402.60

Supply

The quantity of goods and services offered for sale at a particular time or at one piece. It

describes the total amount of a specific good that is available to customer. It also refers to the

amount of product that manufacturers and firms are willing to sell at given price when all

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others factors held constant.

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Table 5. Annual Supply of Griller for Past Years

YEA SUPPLY
R
201
2,207
7
201
2,398
8
201
2,501
9
202
2,677
0
202
2,790
1

Projected Supply

The quantity of goods and services offered for sale at a particular time or at one piece.

It describes the total amount of a specific good that is available to customer. It also refers to

the amount of product that manufacturers and firms are willing to sell at given price when all

others factors held constant.

Table 6. Projected Supply for the Next Five Years

YEAR ACTUAL SUPPLY X XY YC (COMPUTED


IN UNIT (Y) X2 SUPPLY IN UNIT)
2017 2,207 1 1 2,207
2018 2,398 2 4 4,796
2019 2,501 3 9 7,503
2020 2,677 4 16 10,708
2021 2,790 5 25 13,950
TOTAL 12,573 15 55 39,164
2022 6 2948.10
2023 7 3092.60
2024 8 3237.10
2025 9 3381.60

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2026 10 3,526.10

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* Computed Supply

To get the actual supply, the formula to be used is:

PROJECTED SUPPLY= A+BX

Using the formula below, the value of a and b will be


determined:

𝒂 = (∑ 𝑥2∗∑𝑦)− (∑ 𝑥∗∑ (n∗∑ 𝑥𝑦)− (∑ 𝑥∗∑


𝒃= 𝑦) (n∗∑𝑥 2) − (∑
𝑥𝑦) (n∗∑𝑥 2) −
2
(∑𝑥 2) 𝑥)

(55∗12,573) −
=
(15∗39,164) (5∗39,164) − (15∗12,573)
(5∗55) − (15)2 = (5∗55) − (15)2

(691,515)−(587,460)
= (275)−(225) =
(195,820)−(188,595)
(275)−(225)

=
104,055 =
7,225
50 50

𝒂. = 2,081.10 𝒃 = 144.50

Therefore,

Y2020 = 2,081.10+ (144.50∗ 6) = 2948.10

Y2021 = 2,081.10+ (144.50∗ 7) = 3092.60

Y2022 = 2,081.10+ (144.50∗ 8) = 3237.10

Y2023 = 2,081.10+ (144.50∗ 9) = 3381.60

Y2024 = 2,081.10+ (144.50∗ 10) = 3,526.10

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Demand and Supply Gap Analysis

It is essential to identify the gap between the demand and supply of the product in

the market so as to measure the penetrability of ADAR Manufacturing once it enters the

market circulation. This analysis will be used to determine the level of sufficiency of the

current supply to the current demand.

Table 7. Gap between the Demand and Supply for the Next Five Years

MARKET
YEAR PROJECTED PROJECTED UNIT GAP SHARE
DEMAND SUPPLY
(35%)
2022 10,625.80 2948.10 7,677.70 2687.20
2023 10,820.00 3092.60 7,727.40 2704.59
2024 11,014.20 3237.10 7,777.10 2721.99
2025 11,208.40 3381.60 7,826.80 2739.38
2026 11,402.60 3,526.10 7,876.50 2756.78

Projected Sales and Market Shares

The market share of the company is 35% which is from the existing competition in

the market. To get the unit price, 4.5%, a new rebased series of Philippine Inflation Rate

as of April 2021 is used. ADAR’s projected sales and unit price are determined below:

Table 8. Projected Sales and Market Share

MARKET PROJECTE
YEA GA % UNIT
SHARE D
R P PRICE
(35%) SALES
2,687.20 ₱2,915.81 ₱7,835,362.4
2022 7,677.70 5
2,704.59 ₱3,047.03 ₱8,240,956.7
2023 7,727.40 8
2,721.99 ₱3,184.14 ₱8,667,187.9
2024 7,777.10 9

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2,739.38 ₱3,327.43 ₱9,115,092.0


2025 7,826.80 8
2,756.78 ₱3,477.16 ₱9,585,756.4
2026 7,876.50 7

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Marketing Strategies and Program

The marketing strategy will help to define the overall direction and goals of the

marketing study. This strategy will identify how the product should be delivered to satisfy

the customers. The marketing program is consisted of four (4) P's - product, pricing,

promotional, and placement.

ADAR Manufacturing strives to build a great company image that will lead to client

satisfaction and positive feedback. This includes reasonable pricing, a good promotional

and placement strategy that is tailored to the specific needs of ADAR Manufacturing and its

customers.

Product Strategy

A product strategy unifies the organization and keeps employees focused on what

matters most. It also communicates the organization’s objectives.

 Griller exist in a variety of types and materials depending on their use. The Foldable

Griller with Stove is mainly composed of aluminum, stainless steel and plastic, as the base of

the proposed product.  Stainless metal sheet has a high level of durability that contribute to

the quality of the product. Stainless steel is an excellent material for any purpose because of

its corrosion resistance. The most commonly utilized metals are aluminum and stainless.

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Name and Image of the Product

Company logo is intended to communicate the uniqueness identity of the product

and the company. Logo connects the image a company wants to represent. ADAR

came from the combined initial of the surname of the proponents which are “A” for

Alcaraz, “D” for Del Castillo, “A” for Alviar and “R” for Robis.

Figure 13. Foldable Grillers with Stove

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Figure 14. Packaging

Figure 15. Brand Logo

Figure 16. Company Logo

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Figure 17. Foldable Grillers with Stove CAD project

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Pricing Strategy

Customers typically desire a reasonably priced products for practical living. The

product will have a high starting price because it is made of pure stainless metal sheet. The

goal of ADAR Manufacturing is to break into the market at the most affordable price

as possible.

Table 9. Product Costing

Product Costing
Amount Direct Materials 1,717.62
Direct Labor Cost 171.48
Indirect Materials 113.52
Total Manufacturing Cost
2,002.62
Mark-up (30%) 672.88
Total Cost 2,675.50
VAT (12%) 240.31
Selling Price ₱ 2,916.00

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Promotions/Advertising Strategy

The objective of production marketing is to improve potential consumers’

perceptions of the product and thus increase sales. Because the company is a

newcomer to the sector, it will use promotional schemes to introduce and encourage

potential clients to try the product. As a result, advertising and commercial activities will

be designed to address the market’s ignorance about ADAR Manufacturing’s entry into

the business. The corporation will use various advertising strategies and commercial

ways to deliberately enlighten and promote awareness of what the company can

provide in the market through online advertisement.

Figure 18. Flyers

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Figure 19. Online


Advertisement

Placement Strategy

The company’s manufacturing facility is located at San Pedro City, Laguna. This implies

that it has a geographic distribution and logistical advantage. Shopwise, Pacita Commercial

Center, Robinsons Pacita, and Robinsons South Galleria are among the places where the

product will be introduced and distributed. Because the facility is located in an area where the

company can readily and comfortably access target consumers, personally distributing the

items to the mentioned channels will not be a problem for the company.

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Chapter 4: Technical Study

This chapter looks at the technical components of making a Foldable Griller with

Stove. It consists of identifying manufacturing processes as well as the materials,

machineries, equipment, office, and production supplies needed to create and convert

raw materials into finished product and deliver them to customers. Lists of machinery,

equipment, and supplies are listed, along with their prices, quantities, and potential

providers. A geographical map is used to locate the proposed manufacturing location.

The plant layout is shown for creating the floor plan and arranging the various

departments and other facilities to ensure that business activities move smoothly. Other

topics covered in this chapter are utilities and safe trash disposal.

Objectives of the Study

 To determine the product's functional usability

 To establish standard operating procedures for the product's manufacture.

 To measure and calculate the overall cost and price of the materials, equipment, and

supplies that will be consumed in the production and office.

 To determine the required capacity, production schedule, number of shifts per day,

and daily working hours.

 To plan the company's location along with the layout of the facility.

 To determine the company's technical support and other supplies.

 To ensure that production waste is properly discharged.

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Description of the Product

The grill is usually used by Filipinos when someone wants to cook with charcoal, it is

an extra tool or equipment when there is no use for cooking with gas. The grill is usually

big, heavy and can’t be carried anywhere to be used wherever you want and there are also

those who just make their own grill or DIY grill. The foldable grillers with stove or further

improved and made grilling easier. It has three types of cooking that use charcoal, the first

has a stove that can be cooked using pots, pans and others commonly used in ordinary

cooking. Second is the Korean grill. Filipinos now love the style of grilling of Koreans. It is

called samgyupsal.

This grill pan is used to cook small meats while eating. The third is the traditional

grill, ordinary grilling of the Filipinos. Each grill is a type of box measuring 17 inches long

and 12 inches wide and 5 inches high. It also has a box inside that will hold charcoal and

another box that will drop the ashes from the charcoal. When it comes to the back of the

box, it has railings for air to enter and not to lose the burning charcoal. The foldable grillers

with stove are all made of stainless steel to prevent rusting because it is about food the

cooking needs to be clean. This product is made for people who love grilling and

samgyupsal that can be taken anywhere. It is small, folding and easy to carry and it also

does not take up space in the area where it will be used.

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Features

Figure 20. Features and Parts of Foldable Griller with stove

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Machinery and Equipment

Table 10. Machineries of ADAR Manufacturing

Supplier
Machine Qty. UOM Unit Price Total Price /
Dealer

1 piece ₱1,505,450.0 ₱ Harsle


s 0 1,505,450.00

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Laser Cutting
Machine

2 piece ₱151,473.00 ₱ 302,946.00 Harsle


s

Bending
Machine

2 piece ₱1,399.00 ₱2,798.00


Bosch

Grinder
Machine

Gold
Apex
2 piece ₱5,500.00 ₱11,000.00 Tools &
Hardwar
e Co.
Tungsten Welding
Machine

TOTAL ₱1,822,194.0
0

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Production Equipment

Table 11. Production Equipment of ADAR Manufacturing

Equipment Qty. UOM Unit Total Price Supplier


Price

1 box ₱340.00 ₱340.00 Backje


Philippine
Cutting Disc s Inc.

2 piece ₱140.00 ₱280.00 Backje


Philippine
Measuring Steel s Inc.
Tape

Backje
3 piece ₱40.00 ₱120.00 Philippine
s Inc.
Stainless Steel
Scale

JansTech
Precision
4 piece ₱960.00 ₱3,840.00 Manufacturin
Workstation Table g Corp

JansTech
Precision
1 piece ₱2,350.00 ₱2,350.00 Manufacturin
Metal Rack g Corp
Welding Rod

ACE
10 Box ₱400 ₱4,000.00 Hardware

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TOTAL ₱ 10,930.00

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Personal Protective Equipment

Table 12. Personal Protective Equipment for Production


Operators

Name and Picture Qty. UOM Unit Total Price Supplier


Price

SafetyWe
5 box ₱500.00 ₱2,500.00 ll
Marketing
Dust Mask Inc

SafetyWe
5 pair ₱250.00 ₱1,250.00 ll
Marketing
Safety Shoes Inc

SafetyWe
10 piec ₱80.00 ₱800.00 ll
e Marketing
Inc
Safety Goggles

SafetyWe
10 pair ₱70.00 ₱700.00 ll
Marketing
Inc
Safety Gloves
TOTAL ₱ 5,250.00

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Furniture and Fixtures

To support the business operations of ADAR Manufacturing, the proponents

enumerate essential furniture and fixtures for the company and distributed all the items in

both production and admin area. The following are listed below:

Table 13. Furniture and Fixtures of ADAR Manufacturing

Name and Picture Qty UOM Unit Total Price Supplier


Price

Good
Morning
4 piec ₱760.00 ₱3,040.00 Furniture
e San
Pedro
Office Table
Laguna

Good
Morning
4 piec ₱1,000.00 ₱4,000.00 Furniture
e San
Pedro
Office Chair Laguna

National
Bookstor
3 piec ₱800.00 ₱2,400.00 e
e Robinson
s South
Filing Cabinet Galeria

National
Bookstor
4 piec ₱250.00 ₱1,000.00 e
e Robinson
s South
Whiteboard Galeria

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Good
Morning
2 piec ₱4,500.00 ₱9,000.00 Furniture
e San
Pedro
Long Table
Laguna

PC Express
4 piece ₱8,500.00 ₱34,000.00 Pavillion mall

Desktop Computer

PC Express
3 piece ₱8,000.00 ₱24,000.00 Pavillion mall

Printer

1 bundle ₱1,399.00 ₱1,399.00 PLDT

Telephone And Internet

1 piece ₱8,599.00 ₱8,599.00 Abensons


Television

MB Manila
1 piece ₱7,000.00 ₱7,000.00 Steel
Enterprises
Locker

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10 piec ₱130.00 ₱1,300.00 Uratex


e
Monoblock Chairs

2 piec ₱1,339.00 ₱2,678.00 Abenson


e
Water Dispenser

Office
warehous
3 piec ₱350.00 ₱1,050.00 e
e Robinson
First Aid Cabinet s Sta.
Rosa

Jeciadr
yl
1 piec ₱250.00 ₱250.00 Trading
e Inc.
Fire Alarm

OMNI
Electrica
3 piec ₱450.00 ₱1,350.00 l and
Emergency Light e Lighting
TOTAL ₱ 101,066.00

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Other Supplies

Table 14. Other Supplies of ADAR Manufacturing

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Unit Tota
Name and Picture Qty. UOM Pric l Supplier
e Pric
e

Jeciadr
yl
3 piec ₱500.00 ₱1,500.00 Trading
e Inc.
Fire Extinguisher

Office
warehous
3 piec ₱110.00 ₱330.00 e
e Robinson
Flashlight s Sta.
Rosa

Office
warehous
6 piec ₱80.00 ₱480.00 e
e Robinson
Trash bin s Sta.
Rosa

1 piec ₱130.00 ₱130.00 Abenson


e

Wall Clock
TOTAL ₱2,440.00

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Ventilation

For employees to work comfortably, a well-ventilated workspace is essential. The

following is a list of the necessary ventilation equipment:

Table 15. Ventilation of ADAR Manufacturing

Name and Picture Qty. UOM Unit Price Total Price Supplie
r

2 piec ₱2,000.00 ₱4,000.00 Iwata


e
Industrial fan

2 piec ₱900.00 ₱1,800.00 Iwata


e
Exhaust fan

4 piec ₱9,998.00 ₱39,992.00 Abenso


e n

Air conditioner

3 piec ₱500.00 ₱1,500.00 Iwata


e
Standard wall fan

TOTAL ₱47,292.00

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Office Supplies

Table 16. Office Supplies of ADAR Manufacturing

Unit
Name and Qty. UOM Pric Total Price Supplier
Picture e

1 piec ₱200.00 ₱200.00 Shopwise


e San
HDMI Cable Pedro,

National
Bookstore
Robinsons
Calculator 1 piece ₱100.00 ₱100.00 South Galeria

2 piece ₱100.00 ₱200.00 Shopwise


San Pedro,
Extension

50 piece ₱10.00 ₱500.00 Office


WareHouse
Notebook

Office
12 pack ₱15.00 ₱180.00 WareHouse
Ballpen

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Office
12 piec ₱14.00 ₱168.00
WareHous
e
e
Whiteboard
marker

Office
6 piec ₱40.00 ₱240.00 WareHous
e e
Permanent
marker

Office
5 piec ₱20.00 ₱100.00
WareHous
e
e
Scissors

Office
5 piec ₱25.00 ₱125.00
WareHous
e
e
Ruler

Office
5 piec ₱25.00 ₱125.00
WareHous
e
e
Stapler

Office
5 box ₱50.00 ₱250.00
WareHous
e
Staple wire

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Office
5 piece ₱55.00 ₱275.00 WareHous
e
Puncher

Office
20 piece ₱5.00 ₱100.00
WareHous
e
Tape

Office
5 piece ₱55.00 ₱275.00
WareHous
e
Tape Dispenser

Office
12 piece ₱20.00 ₱240.00 Office
5 piece ₱100.00 ₱500.00 WareHous
WareHous
e
Double sided e
File Holder
tape

Office
10 pack ₱160.00 ₱1,600.00 Office
WareHous
60 piece ₱6.00 ₱360.00 WareHous
A4 bondpaper e
Folder e

Office
Office
10
2 pack ₱160.00
piece ₱33.00 ₱1,600.00
₱66.00 WareHous
WareHous
e
e
Short bondpaper
Fastener

Office
6 SPCBA
pack ₱100.00 ₱600.00
RESEARCH CENTER WareHous
e
Time Card
TOTAL ₱7,951.00
68

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Production Supplies

Raw Materials

Table 18. Raw Materials for Production of Foldable Grillers with

stove of ADAR Manufacturing

Unit
Materials Quantity Price Supplier

4ft. x 1 Gold Apex


₱1,100.00
2ft. Tools &
Hardware Co
Stainless metal sheet

Gold Apex
Tools &
1/4inch 4
₱220.00 Hardware Co
5ft.

Stainless steel shaft

13in. x 15in ₱180.00 Korean


1 Wholesaler
Boutique
Non-stick griller pan Manila

M6 X 20 4 ₱11.2 Gold Apex Tools


& Hardware Co

Bolts and Nuts

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1 ½ inch Gold Apex


4 ₱8.33 Tools &
Hardware Co
Loose pin hinger

Gold Apex
2 inches ₱22.5
Tools &
3 Hardware Co
Latches lock

Gold Apex Tools


1 ₱72.00 & Hardware Co
3 inches

Cabin Hook
TOTAL ₱1,717.62

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Packaging Materials

Packaging materials are required to retain and protect the product throughout

storage in the finished goods warehouse and transportation to customers. The following

are the materials that will be used:

Table 19. Packaging Materials for Foldable Grillers with stove of ADAR Manufacturing

Required
Name and Specification Quantity Total Supplier
Picture s

30inch x Gokei
20inch 1 ₱22.00 Packagin
g
Philippin
Box e

Gokei
4 x 4 x 3 inch
1 set ₱91.5 Packagin
g
Philippin
Styrofoam corner e
protector
TOTAL ₱113.50

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Manufacturing

Process Flow of

Production

The production flow chart shows the process of how the Foldable Griller with

Stove is manufactured. It undergoes into different processes like cutting, bending,

welding, polishing, assembly and inspection to produce a foldable griller with stove.

Figure 21. Flow Process Chart

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Description of the Process


Cutting

Raw materials are measured before being cut to ensure that they meet the product's

specified standard measurements. To guarantee that the measurements are correctly

identified, markings are placed on the surface of the raw materials. To cut each stainless-

steel sheet, a laser cutting machine will be used to cut the marks on the raw materials

according to its specifications. This laser machine is also used to make holes in the charcoal

drawer and the airways of each griller and the stove.

Bending

After the cutting process, the next operation is the bending process, which involves

molding all of the cut parts to their appropriate shapes.

Welding

In this method, all the bended parts (except the stand and the handles) had been

fused together using heat, pressure, or a combination of the two, establishing a join when the

components cool.

Polishing

All the parts that had been only processed through welding will undergo polishing

which is the process of rubbing or chemically treating a surface to create a smooth and

glossy finish, leaving a clean surface with a high degree of specular reflection.

Assembly

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Assembly is the process of arranging the product's components together until it is

completed. Every component of the product must be assembled correctly to identify the

possible adjustments to rework.

Inspection

The product must be inspected to identify the possible defects or rejects in the

product. It is necessary to ensure the quality of the product.

Packaging

After all the process is done, the product will be covered in Styrofoam and placed in its

box.

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Program Evaluation and Review Techniques

 Optimistic Time (O) – Best Case Estimate

The amount of time it takes if there are no delays or other unanticipated events

and everything goes as planned.

 Most-Likely Time (M) – Probable-Case Estimate

The time it will most likely take is based on employee outcomes and capacity to

complete the activity.

 Pessimistic Time (P) – Worst-Case Estimate

The longest time that a task is expected to take to finish.

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76

Production of Foldable Griller with Stove

Table 20. Program Evaluation and Review

Technique

Traditional Griller
Time Estimates
(O+4M+P)/6
(seconds)
ACTIVITY DESCRIPTION PREDECESSOR Expected
OT MT PT Time (ET)

A Cutting - 72.40 74.12 76.12 74.17


B Bending A 70.33 72.13 74.34 72.20
C Welding C 104.44 108.59 111.01 108.30
D Polishing D 79.02 81.02 79.21 80.39
TOTAL 326.19 335.86 340.68 335.05

Capacity Requirements

Based on the expected time in the Program Evaluation and Review

Technique (PERT) of Foldable Griller with Stove, the standard time is 335.05

minutes.

To determine the output per day:

(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑒𝑟)(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐻𝑜𝑢𝑟𝑠) (60 𝑚𝑖𝑛𝑢𝑡𝑒𝑠)


= 𝑥 𝐿𝑖𝑛𝑒 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦
(𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑇𝑖𝑚𝑒 )

(4)(6 hours)(60 𝑚𝑖𝑛𝑠)


= 𝑥 50 %
(335.05 𝑚𝑖𝑛𝑠)

𝑶𝒖𝒕𝒑𝒖𝒕 𝒑𝒆𝒓 𝒅𝒂𝒚 = 2.14 𝒖𝒏𝒊𝒕𝒔 𝒐𝒓 𝒂𝒑𝒑𝒓𝒐𝒙𝒊𝒎𝒂𝒕𝒆𝒍𝒚 2 𝒖𝒏𝒊𝒕𝒔

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Table 20. Program Evaluation and Review Technique

Korean Griller

Time Estimates
(O+4M+P)/6
(seconds)
ACTIVITY DESCRIPTIO PREDECESS Expected
N OR OT MT PT Time (ET)
A Cutting - 73.81 74.13 76.03 74.39
B Bending A 69.32 71.94 73.69 71.80
C Welding C 60.44 62.12 64.19 62.19
D Polishing D 60.61 62.31 64.22 62.35
TOTA 278.1
L 264.18 270.50 3 270.72

Capacity Requirements

Based on the expected time in the Program Evaluation and Review

Technique (PERT) of foldable Griller with Stove, the standard time is 270.72

minutes.

To determine the output per day:

(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑒𝑟)(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐻𝑜𝑢𝑟𝑠) (60 𝑚𝑖𝑛𝑢𝑡𝑒𝑠)


= 𝑥 𝐿𝑖𝑛𝑒 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦
(𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑇𝑖𝑚𝑒 )

(4)(6hours)(60 𝑚𝑖𝑛𝑠)
= 𝑥 50 %
(270.72 𝑚𝑖𝑛𝑠)

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𝑶𝒖𝒕𝒑𝒖𝒕 𝒑𝒆𝒓 𝒅𝒂𝒚 = 2.66 𝒖𝒏𝒊𝒕𝒔 𝒐𝒓 𝒂𝒑𝒑𝒓𝒐𝒙𝒊𝒎𝒂𝒕𝒆𝒍𝒚 3 𝒖𝒏𝒊𝒕𝒔

Table 20. Program Evaluation and Review Technique

Stove

Time Estimates
(O+4M+P)/6
(seconds)
ACTIVITY DESCRIPTIO PREDECESS Expected
N OR OT MT PT Time (ET)
A Cutting - 92.96 94.12 95.78 94.20
B Bending A 74.85 76.55 77.41 76.41
C Welding C 93.14 94.27 96.32 94.42
D Polishing D 74.14 76.23 78.21 76.21
TOTA 347.7
L 335.09 341.17 2 341.25

Capacity Requirements

Based on the expected time in the Program Evaluation and Review

Technique (PERT) of foldable Griller with Stove, the standard time is 341.25

minutes.

To determine the output per day:

(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑒𝑟)(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐻𝑜𝑢𝑟𝑠) (60 𝑚𝑖𝑛𝑢𝑡𝑒𝑠)

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= 𝑥 𝐿𝑖𝑛𝑒 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦
(𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑇𝑖𝑚𝑒 )

(4)(6 hours)(60 𝑚𝑖𝑛𝑠)


= 𝑥 50 %
(341.25 𝑚𝑖𝑛𝑠)

𝑶𝒖𝒕𝒑𝒖𝒕 𝒑𝒆𝒓 𝒅𝒂𝒚 = 2.11 𝒖𝒏𝒊𝒕𝒔 𝒐𝒓 𝒂𝒑𝒑𝒓𝒐𝒙𝒊𝒎𝒂𝒕𝒆𝒍𝒚 4 𝒖𝒏𝒊𝒕𝒔

Table 20. Program Evaluation and Review Technique

Charcoal Drawer & Oil Catcher

Time Estimates
(O+4M+P)/6
(seconds)
ACTIVITY DESCRIPTIO PREDECESS Expected
N OR OT MT PT Time (ET)
A Cutting - 34.32 36.12 39.41 36.37
B Bending A 37.09 39.28 40.89 39.18
C Welding C 43.21 44.32 46.32 44.47
D Polishing D 39.45 40.54 42.55 40.69
TOTA 169.1
L 154.07 160.26 7 160.71

Capacity Requirements

Based on the expected time in the Program Evaluation and Review

Technique (PERT) of foldable Griller with Stove, the standard time is 160.71

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80

minutes.

To determine the output per day:

(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑒𝑟)(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐻𝑜𝑢𝑟𝑠) (60 𝑚𝑖𝑛𝑢𝑡𝑒𝑠)


= 𝑥 𝐿𝑖𝑛𝑒 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦
(𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑇𝑖𝑚𝑒 )

(4)(6 hours)(60 𝑚𝑖𝑛𝑠)


= 𝑥 50 %
(160.71 𝑚𝑖𝑛𝑠)

𝑶𝒖𝒕𝒑𝒖𝒕 𝒑𝒆𝒓 𝒅𝒂𝒚 = 4.49 𝒖𝒏𝒊𝒕𝒔 𝒐𝒓 𝒂𝒑𝒑𝒓𝒐𝒙𝒊𝒎𝒂𝒕𝒆𝒍𝒚 5 𝒖𝒏𝒊𝒕𝒔

Table 20. Program Evaluation and Review Technique

Fabrication of Ash Drawer

Time Estimates
(O+4M+P)/6
(seconds)
ACTIVITY DESCRIPTIO PREDECESS Expected
N OR OT MT PT Time (ET)
A Cutting - 35.10 36.45 37.51 36.40
B Bending A 40.19 44.21 46.33 43.89
C Welding C 31.74 32.12 34.61 32.47
D Polishing D 34.85 36.48 39.12 36.65
TOTA 157.5
L 141.88 149.26 7 149.42

Capacity Requirements

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81

Based on the expected time in the Program Evaluation and Review

Technique (PERT) of foldable Griller with Stove, the standard time is 149.42

minutes.

To determine the output per day:

(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑒𝑟)(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐻𝑜𝑢𝑟𝑠) (60 𝑚𝑖𝑛𝑢𝑡𝑒𝑠)


= 𝑥 𝐿𝑖𝑛𝑒 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦
(𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑇𝑖𝑚𝑒 )

(4)(6 hours)(60 𝑚𝑖𝑛𝑠)


= 𝑥 50 %
(149.42 𝑚𝑖𝑛𝑠)

𝑶𝒖𝒕𝒑𝒖𝒕 𝒑𝒆𝒓 𝒅𝒂𝒚 = 4.82 𝒖𝒏𝒊𝒕𝒔 𝒐𝒓 𝒂𝒑𝒑𝒓𝒐𝒙𝒊𝒎𝒂𝒕𝒆𝒍𝒚 5 𝒖𝒏𝒊𝒕𝒔

Table 20. Program Evaluation and Review Technique

Stand

Time Estimates
(O+4M+P)/6
(seconds)
ACTIVITY DESCRIPTIO PREDECESS Expected
N OR OT MT PT Time (ET)
A Cutting - 19.41 20.77 23.97 21.08
B Bending A 25.63 26.41 30.14 26.90
TOTA
L 45.04 47.18 54.11 47.98

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Capacity Requirements

Based on the expected time in the Program Evaluation and Review

Technique (PERT) of foldable Griller with Stove, the standard time is 47.98

minutes.

To determine the output per day:

(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑒𝑟)(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐻𝑜𝑢𝑟𝑠) (60 𝑚𝑖𝑛𝑢𝑡𝑒𝑠)


= 𝑥 𝐿𝑖𝑛𝑒 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦
(𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑇𝑖𝑚𝑒 )

(2)(6 hours)(60 𝑚𝑖𝑛𝑠)


= 𝑥 50 %
(47.98 𝑚𝑖𝑛𝑠)

𝑶𝒖𝒕𝒑𝒖𝒕 𝒑𝒆𝒓 𝒅𝒂𝒚 = 7.63 𝒖𝒏𝒊𝒕𝒔 𝒐𝒓 𝒂𝒑𝒑𝒓𝒐𝒙𝒊𝒎𝒂𝒕𝒆𝒍𝒚 8 𝒖𝒏𝒊𝒕𝒔

Table 20. Program Evaluation and Review Technique

Handles

Time Estimates
(O+4M+P)/6

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83

(seconds) Expected
ACTIVITY DESCRIPTIO PREDECESS
Time (ET)
N OR OT MT PT
A Cutting - 34.47 36.15 38.02 36.18
B Bending A 24.01 25.14 27.21 25.30
TOTA
L 58.48 61.29 65.23 61.48

Capacity Requirements

Based on the expected time in the Program Evaluation and Review

Technique (PERT) of foldable Griller with Stove, the standard time is 61.48

minutes.

To determine the output per day:

(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑒𝑟)(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐻𝑜𝑢𝑟𝑠) (60 𝑚𝑖𝑛𝑢𝑡𝑒𝑠)


= 𝑥 𝐿𝑖𝑛𝑒 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦
(𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑇𝑖𝑚𝑒 )

(2)(6 hours)(60 𝑚𝑖𝑛𝑠)


= 𝑥 50 %
(61.48 𝑚𝑖𝑛𝑠)

𝑶𝒖𝒕𝒑𝒖𝒕 𝒑𝒆𝒓 𝒅𝒂𝒚 = 5.87 𝒖𝒏𝒊𝒕𝒔 𝒐𝒓 𝒂𝒑𝒑𝒓𝒐𝒙𝒊𝒎𝒂𝒕𝒆𝒍𝒚 6 𝒖𝒏𝒊𝒕𝒔

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Table 20. Program Evaluation and Review Technique

Assembly of Foldable Griller with Stove

Time Estimates
(O+4M+P)/6
(seconds)
ACTIVITY DESCRIPTIO PREDECESS Expected
N OR OT MT PT Time (ET)
E Assembly B,D 82.01 84.39 85.21 84.13
F Final Inspection E 44.65 45.17 47.57 45.48
G Packaging F 31.02 32.14 34.48 32.34
TOTA 167.2
L 157.68 161.7 6 161.96

Capacity Requirements

Based on the expected time in the Program Evaluation and Review

Technique (PERT) of foldable Griller with Stove, the standard time is 161.96

minutes.

To determine the output per day:

(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑒𝑟)(𝑁𝑜. 𝑜𝑓 𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐻𝑜𝑢𝑟𝑠) (60 𝑚𝑖𝑛𝑢𝑡𝑒𝑠)


= 𝑥 𝐿𝑖𝑛𝑒 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦
(𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑇𝑖𝑚𝑒 )

(2)(6 hours)(60 𝑚𝑖𝑛𝑠)


= 𝑥 50 %
(161.96 𝑚𝑖𝑛𝑠)

𝑶𝒖𝒕𝒑𝒖𝒕 𝒑𝒆𝒓 𝒅𝒂𝒚 = 2.23 𝒖𝒏𝒊𝒕𝒔 𝒐𝒓 𝒂𝒑𝒑𝒓𝒐𝒙𝒊𝒎𝒂𝒕𝒆𝒍𝒚 2 𝒖𝒏𝒊𝒕𝒔

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Standard Output

Foldable Griller with Stove

Output per
Parts day
Traditional Griller 2.14
Korean Griller 2.66
Stove 2.11
Charcoal Drawer & Oil
Catcher 4.49
Ash Drawer 4.82
Stand 7.63
Handles 5.87
Assembly 2.23
TOTAL 4.00

Plant Capacity

Since each production produce 4.06 units per day. Therefore, the plant capacity

of ADAR Manufacturing is computed below:

𝑃𝑙𝑎𝑛𝑡 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 = (𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐷𝑎𝑦𝑠) (𝑂𝑢𝑡𝑝𝑢𝑡 𝑝𝑒𝑟 𝑑𝑎𝑦)

= (6 hours x 4 days x 4 weeks x 12 months) (4.00)

𝑷𝒍𝒂𝒏𝒕 𝑪𝒂𝒑𝒂𝒄𝒊𝒕𝒚 = 4,602.64 or 4,603 𝒖𝒏𝒊𝒕𝒔 𝒑𝒆𝒓 𝒚𝒆𝒂𝒓

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Production Schedule

Production schedule is the timetable for the use of resources and processes required

by a business to produce goods or provide services. The fundamental objective of scheduling

is to arrange the manufacturing activities in such a way that the cost of production is

minimized and the goods are delivered on due dates. The office hours will be six (6) hours a

day from 8:00am to 5:00pm. These shifts included a one (1) hour break for the employees.

The production operation would be conducted six (6) hours a day from 8:00am to 2:00pm

and four (4) days a week from Monday to Thursday

Direct Labor Requirements

Choosing the right people that would fit to the needs of the ADAR Manufacturing

Company is important as bringing effectiveness and efficiency to the overall operating of the

business. People is the most important resources of the organization. The organization

success depends on the skills of the employees in their work which is their performance.

ADAR Manufacturing Company would need one (1) employee who would work fulltime as a

Finance and Administrative Officer and six (6) operators that will operate in the production in

producing the product. The labor force of ADAR Manufacturing Company must be skillful in

various process and in operating the tools and machineries used in production of Foldable

Griller with Stove. Employee’s performance has played an important role in achieving the

company goals that is why ADAR Manufacturing Company has to be careful in selecting the

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best employees that would fit the company requirements.

Plant Location

Figure 22. Vicinity Map of ADAR Manufacturing

The company covers an area of 1,224 square meters which is located at WH6 Zara

Compound, Magsaysay Road, Brgy. San Antonio, San Pedro City, Laguna. The site of the

company was selected due to its geographical location and its accessibility to different

suppliers.

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Plant Layout

Figure 23. Plant Layout of ADAR Manufacturing

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Utility

Utilities is considered as a vital in the daily operation of the business. The following

utilities would be needed in the daily operation of ADAR Manufacturing Company: Electricity-

it is one of the most necessarily needed to run the manufacturing business because devices

and machineries needed in the production of Foldable Griller with Stove must use electricity.

Telecommunications- this will help to preserve the good relationship in terms of the

communication to the suppliers as well as the customers. This kind of utility would help the

company on promoting the product which is the Digital Lampscent that would bring higher

income.

Waste Disposal

ADAR Manufacturing Company planned to implement a manner on reducing, reusing,

and recycling the scrap metals and materials used in the production of Foldable Griller with

Stove. Waste management disposes of the products and substances that you have use in

safe and efficient manner. This is something that each and every household and business

owner in the world needs. The ADAR Manufacturing Company would provide trash bins that

must be labeled to simplify the process of waste segregation to ensure cleanliness and an

adequate septic system that consist of pumps and pipes that connected in the drainage

system that would filter the waste water in the tank. The local garbage collector is the in-

charge in collecting the non- biodegradable wastes for the proper disposal. In terms of

excess metal, it could be sold to be melted and reshaped.

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Chapter 5: Management Study

The ADAR Manufacturing Company is a business started by four (4) partners. The

start-up capital that will equally divided into four by the stakeholders which is the twenty-five

percent (25%) per proponents. Six (6) Operators for each process and one (1) Finance and

Administrative Officer will be the number of hiring in the company that will be required to work

in one shift only. The shifts will start from 8am to 5pm, Monday to Friday for the employee

and 8:00am to 2:00pm from Monday to Thursday for the operators. Under the labor code, the

employees are entitled to compensation or wages, overtime pay, holiday pay, SSS, EC, NHI,

remittances, service incentive leaves, and retirement pay. This could guarantee that the

company will have a successful function when it comes to business and employee support.

Objectives of the Study:

 To provide each employee with an accurate job description

 To establish ADAR Manufacturing's guidelines and standards

 To improve worker production efficiency while complying to the company's rules and

regulations

 To establish unity, participation, and empowerment for all employees

 To maximize the performance of a company


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Form of Business Ownership

ADAR Manufacturing Company regarded General Partnership as the

company's ownership structure. A general partnership is formed when two or

more people carry on a business as co-owners. The four (4) individuals who

own the company will invest time, money, knowledge, obligations, and rights in

the company.

As there are four (4) owners, more capital is available for the business, there is

opportunity for income splitting specifically for tax savings, and changing the legal structure is

easier if circumstances change.

Capitalization

Every new business needs a start-up capital to start and run the business, Since

ADAR Manufacturing Company is a new business the four shareholders of the company will

be having a contribution of share that will be divided into four for the start-up capital. Each

shareholder needed to provide a 25% of the ideal capital. When it comes to the authority in

the business one of the four shareholders will gain more profit compare to other shareholders

due to the big role assigned to him/her in managing the company that’s why partners will not

have an equal share of authority in the business.

Organizational Structure

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Organizational structure of ADAR Manufacturing Company consists of institutional

rules and policies designed to outline how various worked roles and responsibilities are

controlled and coordinated. Organization structure determines how information flows from

level to level within the company. It also defines the employee’s job and how it fits with the

overall business. The structure is based on the company’s objectives and strategy. The

projected organization structure of the ADAR Manufacturing Company is shown in the figure

15.

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Figure 25: ADAR Manufacturing Organizational Chart

Manpower Job Description Requirements

In the process of hiring employees, there is a specific characteristic needed to fulfill the

specification of the job requirement. Businesses have certain qualifications during employee

hiring.

Position: Finance and Administrative Manager

Job Description:

The Finance and Administrative Manager is in charge of preparing asset,

liability, and capital account entries by compiling, analyzing, and documenting financial

transactions by entering account information. He is also in charge of the company's

administrative support, which includes scheduling, budget and office reporting,

invoicing, and customer service.


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Job Qualifications:

 Graduate of Bachelor of Science in Accountancy or any four (4) year

course

 Excellent in verbal and communication skill

 Knowledgeable in accounting principles

 Willing to be assigned in San Pedro City, Laguna

Position: Production Operator

Job Description:

The Production Operator is in charge of utilizing the equipment and other

steps along the production line to achieve the desired product quality. They are also

in charge of general cleaning and keeping the building and its facilities in good

condition. Clean up spills with the proper equipment, perform minor repairs, and

provide information to superiors about major repairs.

Job Qualification:

 Able to multi task to ensure that production deadlines are constantly


met

 At least High School graduate

 Preferably certified in any technical vocational course

 Proficient in measuring equipment and techniques specifically used

in production processes

 Willing to be assigned in San Pedro City, Laguna

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 With at least 6 months experience

ADAR Manufacturing consists of 8 potential employees prior to operation of the

firm. The stated daily wages, monthly total and annual total of wages above will be the

estimated wages of the employees.

General Employee Requirements


 2x2 picture

 Good Moral

 Medical Examination result (Dental and Drug test included)

 NBI and Police clearance

 Resume

 SSS, Phil-health and PAG-IBIG

 Tax identification number

 Transcript of RecordsHiring Process

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Figure 26: Hiring Process

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Organizational Policy

It is a set of guidelines and best practices put in place to protect the company,

employees, and customers. Policies are made to determine all major decisions, actions, and

all activities takes place within the boundaries. The set of rules, principles, and guidelines

must be adopted by the organization to reach its long-term goals. On the other hand, the

procedures are the specific methods employed to express policies in action in day-to-day

operations of the organization

Employee’s Conduct

ADAR Manufacturing ensures that quality standards are maintained and that

employees have a pleasant working environment. Employees are expected to be loyal and

efficient in their service to the company and its programs, as well as to cooperate with

coworkers in carrying out the work and duties assigned to them.

ADAR Manufacturing's reputation is extremely valuable, and it must be preserved by

performing duties in accordance with the highest professional standards and applicable code

of ethics. Failure to follow the company's rules and regulations necessitates correction and

disciplinary action. The following are considered violations of the company's rules of conduct

and may result in disciplinary actions and, in extreme cases, termination of employment.

 Consecutive absence and habitual tardiness

 Consuming alcohol while working

 Disrespectful conduct

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 Failure in cooperating, working efficiently and effectively within the organization

 Falsification of any personal information upon employment application

 Fraudulent falsification or manipulation of timesheets

 Fraudulent use of ADAR Manufacturing earnings, funds or finances

 Mistreatment or abusive behavior within the organization or co workers

 Theft or inappropriate possession of property or equipment

 Violation of policies, rules and regulations

 Violation in data privacy

Office Hours and Attendance Policy

The operator’s working days would be from Monday to Thursday, while the office has

been planned to open at 8:00AM to 5:00PM. The standard working hours or normal working

hours refers to the legislation to limit the working hours per day, per week, per month or per

year. If an employee needed to work overtime, the employer would need to pay overtime

payments to employees as required in the law. Regular attendance and punctuality are

necessary for the operation of the company. The company wanted to establish uniform

guidelines that would ensure a consistent and fair approach to solving attendance problems.

Therefore, the company has developed the following attendance policy

If an employee is not able to attend to work in a day, it is necessary to notify the

manager or higher position available and file an emergency, sick or vacation leave

immediately if possible. Job abandonment is considered when an employee is not

attending to work in 3 consecutive days.

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The following stated below are the reasons the company will not consider during

absences or tardiness. Other invalid reasons will be stated in the policy when encountered

during the operation of the company.

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 Bad weather excluding extreme typhoon conditions

 Heavy traffic conditions and delays due to road constructions

 Invalid personal reasons

 Waking up late

 Leaving work prior to the scheduled work time without

approval to any superior in the company

Administrative Policy

A company’s human resources department established the policies that

usually in the employee handbook that their providing for the employees with proper

conducting of orientation to further explain of the details. It would help employees

understand basic rules of the A Feasibility Study in Manufacturing of Foldable Griller with

Stove. The employee that would break the rules and regulation of the company could face

penalties and might lose their job. In any instances the employees do not comply with the

company’s rules and regulations, this shall be taken with manager’s discretion or any

higher position in the workplace available.

 Dress code is necessary in the workplace for safety and formality

purposes.

 Employees are required to be in their respective working areas 8:00

a.m. every Monday to Friday.

 Employees are expected to do their job efficiently and effectively. They

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are expected to meet the deadline coordinated with the customer and

the company.

SWOT ANALYSIS

The table below presented shows the SWOT ANALYSIS of ADAR Manufacturing

and illustrates the internal and external factors of the company. It includes the strengths,

weaknesses, opportunities and threats of the company.

STRENGHTS WEAKNESSES
 Quality product  Lack of experience
 Innovative product  Lack of marketing expertise
 Competitive company  Minimum sales
 Effective and efficient employees  Starting company

OPPORTUNITIES THREATS
 Company expansion  High competition in the market
 Online advertisement
 Wage range for marketing

Table. Swot Analysis

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Employee Compensation

ADAR Manufacturing employees are receiving their salaries every 15 th and 30th day

of the month.

Table 28: Salary of ADAR Manufacturing workers

DAILY MONTHLY
NUMBER ANNUALLY
POSITION WAGES PER PERSON
OF (PHP)
(PHP) (PHP)
EMPLOYEE
S
Finance and Administrative
1 ₱720.00
Officer ₱14,400.00 ₱172,800.00
Production Operator 1 1 ₱470.00 ₱9,400.00 ₱112,800.00
Production Operator 2 2 ₱470.00 ₱9,400.00 ₱112,800.00
Production Operator 3 1 ₱470.00 ₱9,400.00 ₱112,800.00
Production Operator 4 1 ₱470.00 ₱9,400.00 ₱112,800.00
Production Operator 5 1 ₱470.00 ₱9,400.00 ₱112,800.00

Overtime Pay Rates

Overtime hours are not permitted for employees unless there are pending tasks that

must be completed immediately. Employees are required to complete an overtime form,

which must be approved by the respective directors. Overtime forms that are lost or

unapproved are not accepted and are not reflected in their payroll. The amounts given to

employees when there are instances of overtime hours are listed below:

13th Month Pay

Employees are entitled to 13th month pay regardless of their duties and

responsibilities. Employees who are eligible for 13th month pay must have worked for the

company for at least one month during the calendar year. It is delivered no later than

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December 24 of each year.

Employee Benefits

The company will provide benefits to regular employees such as SSS, PAG-IBIG

and Phil-Health to cover all of the employee as stated by the law.

SSS (Social Security System)


Social Security System (SSS) is a government agency and provides social

insurance for the employees of the Philippines. The following listed below are the

benefits of SSS:

 Death

 Disability

 Funeral

 Maternity

 Retirement

 Salary loan

 Sickness

PhilHealth

PhilHealth is a government owned and controlled corporation. It ensures the health

of every Filipino regardless of social status. The following listed below are the benefits of

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PhilHealth:

 MDG Benefits

 Mother and Child Benefits

 Outpatient Benefits

 TSeKaP (Tamang Serbisyo para sa Kalusugan ng Pamilya)

 Z Benefits

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An entrepreneur can consult to a legal professional according to the requirements

needed by the company.

PAG-IBIG/HDMF

Home Development Mutual Fund or more popularly known as the Pag-IBIG Fund is

a government owned and controlled corporation. It is responsible for the administration of

the shelter financing program to provide affordable houses for the Filipino workers. The

following listed below are the benefits of Pag-IBIG:

 Housing loan

 Provident loan

 Short term loan

Paternity leave

Paternity leave is granted for those married men regardless of their status of

employment. It is utilized when a husband needed to provide assistance to his wife during

recovery after pregnancy. 10 paternity leave is given to the working fathers.

Solo Parent Leave

Solo Parent Leave is provided to the employees who is left alone with their

responsibility as a parent to their child due to death, detention, mental incapacity or legal

separation with spouse. The employees is required to provide solo parent identification

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card issued by DSWD to have annual credit of one day parental leave.

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Legal Requirements

One of the important parts of establishing a business is to provide legal requirements

set by the country rules and regulations. It is significantly important to a business to find

and familiarize a start- up laws that apply to the business.

An entrepreneur can consult to a professional regarding to the completion of legal

requirements such as licenses, contracts and leases. Providing legal requirement initially is

the right path for the company to avoid hindrance regarding to the business structure.

The following are the legal requirements as to partnership:

1. Filling the articles of co-partnerships with the Security and Exchange Commission.

a. Filling tax account numbers of each partner and of the partnership.

b. Verification of Partnership.

c. Certification of business registration.

2. Registration of the business name with the Department of Trade and Industry.

3. Mayor’s Permit and Residence Certificate after paying the local tax.

a. Barangay clearance.

b. Police clearance.

c. Business location.

d. Clearance location.

e. Articles of Partnership.

f. Community tax certificate of the partners.

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4. Filling the article of Co-partnership with the Bureau of Internal Revenue as pre-

requisite for the payment for registration of the business name.

a. Mayor’s permit.

b. Getting tax identification number.

c. Copy of Securities and Exchange Commission registration.

d. Registration with the social security system.

The partners are obliged to provide an additional registration requirement with the

social security system for the employees.

 Copy of articles co-partnership

 Employee’s data record.

Table 29: Legal Requirements

Legal Requirements
SEC ₱ 3,000.00
Mayor's Permit ₱ 3,500.00
BIR ₱500.00
DTI ₱ 2,500.00
Seller's Permit ₱ 2,500.00
Total ₱12,000.00

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Chapter 6: Financial Study

This chapter evaluates the study's financial aspects. This also determines start-up

capital and its sources, investment returns, and other financial considerations. This

includes a variety of financial statements such as the cost of sales, income statement,

breakeven analysis, projected balance sheet with vertical and horizontal analysis, and

projected cash flows. These will be used to determine whether or not the company will

remain profitable.

Objectives of the Study:

 To figure out how much capital you'll need to launch your new business.

 To determine the costs and values associated with manufacturing the product and

operating the business.

 To conduct a financial analysis to determine ADAR Manufacturing's capabilities and

profitability.

 To determine the return on investment (ROI).

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Major Financial Assumptions

1. Depreciation is based on the capacity to produce for the property, plant, and

equipment that are directly using in order to create the product, and straight-line

method for other property, plant, and equipment that are indirectly related to the

product.

2. Income tax is based on the 30% corporate tax, that will be paid, on or before April 15

of the following year.

3. Inflation rate which is 4.5% is based on the actual inflation rate.

4. Salaries and wages will have its 4.5% annual increase based on the performance of

the company and assessment of the employees.

5. Payday will be on the 15th and 30th day of the month.

6. Employees' benefits is the total amount of SSS, PhilHealth, and HDMF (Pag-ibig)

7. SSS, Philhealth and Pag-ibig are computed based on the applicable contribution table.

Amount incurred in the month is paid next month.

8. Utilities, and other expenses are aligned and directly correlated to the inflation rate.

9. Sales and Cost of Sales will increase based on the result of supply and demand

analysis in the market study.

10. Pricing strategy will be based on the price of the direct materials, direct labor, factory

overhead, and have enough mark-up in order to have sufficient margin to cover all

fixed expenses by the company.

11. Selling price is inclusive of 12% VAT.

12. Selling price markup is 30%

13. Repairs and Maintenance is set a 5% of the total Property, Plant and Equipment.

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Project Cost

Table 30. Project Cost of ADAR Manufacturing

Project Cost

Raw Material Inventory (good for 3 months) 1,046,772.21


Furniture and Fixture 148,978.00
Machines, Tools, and Equipment 1,829,284.00
Safety and Security Equipment 2,100.00
Personal Protective Equipment 5,600.00
Prepaid Rent 660,000.00
Office and Production Supplies 27,142.00
Total 3,719,876.21

Source of Financing

To be able to start the business, the company planned to acquired and other assets

through the partners’ capital contributions, suppliers of the raw materials, machinery and

other equipment and the customers. The members of the boards which the proponents will

invest in cash using their own resources.

Table 31. Partner’s Capital Share


Partner Owner Percentage Amount
A Alcaraz, Jonathan 25% 1,250,000.00
B Alviar, Dannico 25% 1,250,000.00
C Del Castillo, Justine 25% 1,250,000.00
D Robis, Dave 25% 1,250,000.00
TOTAL 5,000,000.00

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Raw Materials Inventory

SCHEDULE 1: Raw Materials Inventory


SCHEDULE 1: RAW MATERIALS INVENTORY

2022 2023 2024 2025 2026


Raw Materials Inventory, Beginning - 1,126,159 1,135,669 1,145,212 1,154,789
Add: Purchases 5,592,889.29 4,514,145.90 4,552,218.94 4,590,426.21 4,619,388.29
Less: Raw Materials Used 4,466,730.29 4,504,636.03 4,542,675.53 4,580,849.17 4,619,157.33
Raw Materials Inventory, Ending 1,126,159.01 1,135,668.88 1,145,212.29 1,154,789.33 1,155,020.29

Accounts Receivable

SCHEDULE 2: Accounts Receivable


SCHEDULE 2: ACCOUNTS RECEIVABLE

2022 2023 2024 2025 2026


Accounts Receivable, Beginning - 1,253,657.99 1,820,016.28 2,114,756.59 2,304,317.37
Add: Credit Sales 3,134,144.98 3,296,382.71 3,466,875.20 3,646,036.83 3,834,302.59
Less: Collections 1,880,486.99 2,730,024.42 3,172,134.89 3,456,476.05 3,683,171.98
Accounts Receivable, Ending 1,253,657.99 1,820,016.28 2,114,756.59 2,304,317.37 2,455,447.98

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Supplies Expense

SCHEDULE 3: SUPPLIES EXPENSE

Office Supplies Quantity Price Total Time of Purchase per Year Total Annual Cost
HMDI cable 1 200.00 200.00 1 200.00
Calculator 1 100.00 100.00 1 100.00
Extension 2 100.00 200.00 1 200.00
Notebook 50 10.00 500.00 2 1,000.00
Ballpen 12 15.00 180.00 3 540.00
Pencil 3 49.00 147.00 6 882.00
Whiteboard 12 14.00 168.00 1 168.00
Permanent marker 6 40.00 240.00 3 720.00
Scissors 5 20.00 100.00 1 100.00
Ruler 5 25.00 125.00 1 125.00
Stapler 5 25.00 125.00 1 125.00
Staple wire 5 50.00 250.00 2 500.00
Puncher 5 55.00 275.00 1 275.00
Tape 20 5.00 100.00 2 200.00
Tape dispenser 5 55.00 275.00 1 275.00
File holder 5 100.00 500.00 1 500.00
A4 bondpaper 10 160.00 1,600.00 2 3,200.00
Short bondpaper 10 160.00 1,600.00 2 3,200.00
Double sided tape 12 20.00 240.00 2 480.00
Folder 60 6.00 360.00 2 720.00
Fastener 2 33.00 66.00 2 132.00
Time card 6 100.00 600.00 6 3,600.00
Flashlight 3 110.00 330.00 2 660.00
Trash bin 6 80.00 480.00 3 1,440.00
SUBTOTAL 8,761.00 19,342.00

Production Supplies Quantity Price Total Time of Purchase per Year Total Annual Cost
Cutting Disc 1 340.00 1,020.00 1 1,020.00
Measuring steel tape 2 140.00 280.00 1 280.00
Safety shoes 5 250.00 1,250.00 1 1,250.00
First Aid Kit 1 350.00 700.00 1 700.00
Safety goggles 10 80.00 3,200.00 1 3,200.00
Safety gloves 10 70.00 350.00 3 1,050.00
Dusk mask 5 500.00 100.00 3 300.00
SUBTOTAL 6,900.00 7,800.00
TOTAL 15,661.00 27,142.00
SCHEDULE 3: Supplies Expense

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Property, Plant, and Equipment

SCHEDULE 4: Property, Plant, Equipment

SCHEDULE 4: PROPERTY, PLANT, AND EQUIPMENT

Machineries, Tools, Furniture and Safety and Security Personal Protective


Total
and Equipment Fixtures Equipment Equipment
Cost
At January 1, 2022 - - - - -
Additions 1,829,284.00 148,978.00 2,100.00 5,600.00 1,985,962.00
At December 31, 2022 1,829,284.00 148,978.00 2,100.00 5,600.00 1,985,962.00
Additions - - - - -
At December 31, 2023 1,829,284.00 148,978.00 2,100.00 5,600.00 1,985,962.00
Additions - - - - -
At December 31, 2024 1,829,284.00 148,978.00 2,100.00 5,600.00 1,985,962.00
Additions - - - - -
At December 31, 2025 1,829,284.00 148,978.00 2,100.00 5,600.00 1,985,962.00
Additions - - - - -
At December 31, 2026 1,829,284.00 148,978.00 2,100.00 5,600.00 1,985,962.00

Accumulated depreciation -
At January 1, 2022 - - - - -
Depreciation Expense (see Schedule) 329,271.12 18,095.76 378.00 1,008.00 348,752.88
At December 31, 2022 329,271.12 18,095.76 378.00 1,008.00 348,752.88
Depreciation Expense 329,271.12 18,095.76 378.00 1,008.00 348,752.88
At December 31, 2023 658,542.24 36,191.52 756.00 2,016.00 697,505.76
Depreciation Expense 329,271.12 18,095.76 378.00 1,008.00 348,752.88
At December 31, 2024 987,813.36 54,287.28 1,134.00 3,024.00 1,046,258.64
Depreciation Expense 329,271.12 18,095.76 378.00 1,008.00 348,752.88
At December 31, 2025 1,317,084.48 72,383.04 1,512.00 4,032.00 1,395,011.52
Depreciation Expense 329,271.12 18,095.76 378.00 1,008.00 348,752.88
At December 31, 2026 1,646,355.60 90,478.80 1,890.00 5,040.00 1,743,764.40

Book value
At December 31, 2022 1,500,012.88 130,882.24 1,722.00 4,592.00 1,637,209.12
At December 31, 2023 1,170,741.76 112,786.48 1,344.00 3,584.00 1,288,456.24
At December 31, 2024 841,470.64 94,690.72 966.00 2,576.00 939,703.36
At December 31, 2025 512,199.52 76,594.96 588.00 1,568.00 590,950.48
At December 31, 2026 182,928.40 58,499.20 210.00 560.00 242,197.60

Accounts Payable

SCHEDULE 5: Accounts Payable

SCHEDULE 5: ACCOUNTS PAYABLE

2022 2023 2024 2025 2026


Accounts Payable, Beginning - 2,013,440.15 2,833,156.61 3,338,692.79 3,655,769.11
Add: Credit Purchases 3,355,733.58 2,708,487.54 2,731,331.36 2,754,255.72 2,771,632.97
Less: Payments 1,342,293.43 1,888,771.08 2,225,795.19 2,437,179.40 2,570,960.83
Accounts payable, ending 2,013,440.15 2,833,156.61 3,338,692.79 3,655,769.11 3,856,441.25

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SALES

SCHEDULE 6: Sales

SCHEDULE 6: SALES

2022 2023 2024 2025 2026


Units Sold 2,687 2,705 2,722 2,739 2,757
Selling Price 2,915.81 3,047.03 3,184.14 3,327.43 3,477.16
Sales 7,835,362.45 8,240,956.78 8,667,187.99 9,115,092.08 9,585,756.47

Raw Materials Used

SCHEDULE 7: Raw Materials Used

SCHEDULE 7: RAW MATERIALS USED

2022 2023 2024 2025 2026


Units Sold 2,687 2,705 2,722 2,739 2,757
Raw Materials Per Unit 1,662.23 1,665.55 1,668.88 1,672.22 1,675.57
Raw Materials used 4,466,730.29 4,504,636.03 4,542,675.53 4,580,849.17 4,619,157.33

Direct Labor Cost

SCHEDULE 8: Direct Labor Cost

SCHEDULE 8: DIRECT LABOR COST

2022 2023 2024 2025 2026


No. of Operators 6 6 6 6 6
Multiply By No. Of Days 192 192 192 192 192
Total Annual Wokringdays 1,152 1,152 1,152 1,152 1,152
Multiply By Labor Rate 400.00 412.00 424.36 437.09 450.20
Direct Labor Cost 460,800.00 474,624.00 488,862.72 503,528.60 518,634.46
Divide: Annual Production 2,687 2,705 2,722 2,739 2,757
Direct Labor Cost Per Unit 171.48 175.49 179.60 183.81 188.13

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Statement of Cost of Goods Manufactured

SCHEDULE 9: Statement of Cost of Goods Manufactured


ADAR Company
Statement of Cost of Goods Manufactured
For the years ended December 31, 2022 - 2026

Schedules 2022 2023 2024 2025 2026

Raw Materials Inventory, Bbeginning - 1,126,159.01 1,135,668.88 1,145,212.29 1,154,789.33


Add: Purchases During the Year 5,592,889.29 4,514,145.90 4,552,218.94 4,590,426.21 4,619,388.29
Raw Materials Available For Use 5,592,889.29 5,640,304.91 5,687,887.82 5,735,638.50 5,774,177.62
Less: Raw Materials Inventory, Ending 1 1,126,159.01 1,135,668.88 1,145,212.29 1,154,789.33 1,155,020.29
Raw Materials Used 7 4,466,730.29 4,504,636.03 4,542,675.53 4,580,849.17 4,619,157.33
Direct Labor Cost 8 460,800.00 474,624.00 488,862.72 503,528.60 518,634.46
Total Variable Cost 4,927,530.29 4,979,260.03 5,031,538.25 5,084,377.77 5,137,791.79
Factory Overhead
Salaries and Wages 11 586,560.00 612,955.20 640,538.18 669,362.40 699,483.71
Utilities Expense 12 6,962.97 7,276.30 7,603.73 7,945.90 8,303.47
Repair and Maintenance 14 92,353.65 92,353.65 92,353.65 92,353.65 92,353.65
Depreciation 13 332,522.64 332,522.64 332,522.64 332,522.64 332,522.64
Production Supplies 3 7,800.00 7,800.00 7,800.00 7,800.00 7,800.00
Total Factory Overhead 1,026,199.26 1,052,907.79 1,080,818.21 1,109,984.59 1,140,463.47
Cost of Goods Manufatured 5,953,729.54 6,032,167.82 6,112,356.45 6,194,362.36 6,278,255.25

Statement of Cost of Sales

SCHEDULE 10: Statement of Cost of Sales


ADAR Company
Statement of Cost of Sales
As at December 31, 2022 - 2026

Schedule 2022 2023 2024 2025 2026

Finished Goods Inventory, Beginning - - - - -


Add: Cost of Goods Manufactured 9 5,953,729.54 6,032,167.82 6,112,356.45 6,194,362.36 6,278,255.25
Cost of Goods available for sale 5,953,729.54 6,032,167.82 6,112,356.45 6,194,362.36 6,278,255.25
Less: Finished Goods Inventory, Ending - - - - -
Cost of Sales 5,953,729.54 6,032,167.82 6,112,356.45 6,194,362.36 6,278,255.25

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Salaries and Wages

SCHEDULE 11: Salaries and Wages


SCHEDULE 11: SALARIES AND WAGES

Salaries and wages 2022 2023 2024 2025 2026


Administration 149,760.00 156,499.20 163,541.66 170,901.04 178,591.59
Factory Overhead 586,560.00 612,955.20 640,538.18 669,362.40 699,483.71
Total 736,320.00 769,454.40 804,079.85 840,263.44 878,075.30

Utilities Expense

SCHEDULE 12: Utilities Expense


SCHEDULE 12: UTILITIES EXPENSE

Utilities Expense Production Administration Total


Electricity 6,362.97 123,365.70 129,728.66
Water 600.00 12,300.00 12,900.00
Total 6,962.97 135,665.70 142,628.66

Depreciation

SCHEDULE 13: Depreciation


SCHEDULE 13: DEPRECIATION

Depreciation Production Administration Total


Furniture and Fixture 2,016.72 16,079.04 18,095.76
Machines, Tools and Equipment 329,271.12 - 329,271.12
Safety and Security Equipment 226.80 151.20 378.00
Personal Protective Equipment 1,008.00 - 1,008.00
Total 332,522.64 16,230.24 348,752.88

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Repair and Maintenance

SCHEDULE 14: Repair and Maintenance


SCHEDULE 14: REPAIR AND MAINTENANCE

Repairs and Maintenance Production Administration Total


Furniture and Fixture 546.45 6,902.45 7,448.90
Machines, Tools and Equipment 91,464.20 - 91,464.20
Safety and Security Equipment 63.00 42.00 105.00
Personal Protective Equipment 280.00 - 280.00
Total 92,353.65 6,944.45 99,298.10

Income Statement

ADAR Company
Income Statement
For the Years Ended December 2022 - 2026

Schedule 2022 2023 2024 2025 2025

Sales 6 6,995,859.33 7,357,997.12 7,738,560.71 8,138,475.07 8,558,711.14


Cost of sales 10 5,953,729.54 6,032,167.82 6,112,356.45 6,194,362.36 6,278,255.25
Gross Profit 1,042,129.79 1,325,829.31 1,626,204.25 1,944,112.71 2,280,455.88
General and Administrative Expenses
Salaries and Wages 11 149,760.00 156,499.20 163,541.66 170,901.04 178,591.59
Rent Expense 660,000.00 660,000.00 660,000.00 660,000.00 660,000.00
Utilities Expense 12 135,665.70 141,770.65 148,150.33 154,817.10 161,783.87
Depreciation 13 16,230.24 16,230.24 16,230.24 16,230.24 16,230.24
Repair and Maintenance 14 6,944.45 6,944.45 6,944.45 6,944.45 6,944.45
Office Supplies 3 19,342.00 19,342.00 19,342.00 19,342.00 19,342.00
Miscellaneous 5,802.60 5,802.60 5,802.60 5,802.60 5,802.60
Total General and Administrative Expenses 993,744.99 1,006,589.14 1,020,011.29 1,034,037.43 1,048,694.74
Net Income Before Tax 48,384.80 319,240.16 606,192.97 910,075.28 1,231,761.14
Income Tax Expense 14,515.44 95,772.05 181,857.89 273,022.58 369,528.34
Net Income After Tax 33,869.36 223,468.11 424,335.08 637,052.70 862,232.80

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Statement of Changes in Equity

ADAR Company
Statement of Changes in Equity
As of December 31, 2022 - 2026

2022 2023 2024 2025 2026

Alcaraz, Beginning Balance 1,250,000.00 1,258,467.34 1,310,334.37 1,411,618.14 1,565,121.31


Share in Net Income (Loss) 8,467.34 55,867.03 106,083.77 159,263.17 215,558.20
Additional Investment (Withhdrawal) - (4,000.00) (4,800.00) (5,760.00) (6,912.00)
Alcaraz, Ending Balance 1,258,467.34 1,310,334.37 1,411,618.14 1,565,121.31 1,773,767.51

Alviar, Beginning Balance 1,250,000.00 1,258,467.34 1,311,334.37 1,413,818.14 1,568,761.31


Share in Net Income (Loss) 8,467.34 55,867.03 106,083.77 159,263.17 215,558.20
Additional Investment (Withhdrawal) - (3,000.00) (3,600.00) (4,320.00) (5,184.00)
Alviar, Ending Balance 1,258,467.34 1,311,334.37 1,413,818.14 1,568,761.31 1,779,135.51

Del Castillo, Beginning Balance 1,250,000.00 1,258,467.34 1,313,334.37 1,418,218.14 1,576,041.31


Share in Net Income (Loss) 8,467.34 55,867.03 106,083.77 159,263.17 215,558.20
Additional Investment (Withhdrawal) - (1,000.00) (1,200.00) (1,440.00) (1,728.00)
Del Castillo, Ending Balance 1,258,467.34 1,313,334.37 1,418,218.14 1,576,041.31 1,789,871.51

Robis, Beginning Balance 1,250,000.00 1,258,467.34 1,314,334.37 1,419,218.14 1,577,041.31


Share in Net Income (Loss) 8,467.34 55,867.03 106,083.77 159,263.17 215,558.20
Additional Investment (Withhdrawal) - - (1,200.00) (1,440.00) (1,728.00)
Robis, Ending Balance 1,258,467.34 1,314,334.37 1,419,218.14 1,577,041.31 1,790,871.51

Net Income (Loss) After Tax 5,033,869.36 5,249,337.47 5,662,872.55 6,286,965.24 7,133,646.04

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Statement of Financial Position

ADAR Company
Statement of Financial Position
December 31, 2022 - 2026

Schedule 2022 2023 2024 2025 2026

ASSETS

CURRENT ASSETS
Cash 2,533,647.73 3,595,879.38 4,686,604.49 5,911,958.12 7,300,161.00
Raw Material Inventory 1 1,126,159.01 1,135,668.88 1,145,212.29 1,154,789.33 1,155,020.29
Accounts Receivable 2 1,253,657.99 1,820,016.28 2,114,756.59 2,304,317.37 2,455,447.98
Prepaid Rent 660,000.00 660,000.00 660,000.00 660,000.00 660,000.00
Office and Production Supplies 3 27,142.00 27,142.00 27,142.00 27,142.00 27,142.00
Total Current Assets 5,600,606.73 7,238,706.54 8,633,715.37 10,058,206.82 11,597,771.27

NONCURRENT ASSETS
Property, Plant, and Equipment - net 4 1,637,209.12 1,288,456.24 939,703.36 590,950.48 242,197.60
TOTAL ASSETS 7,237,815.85 8,527,162.78 9,573,418.73 10,649,157.30 11,839,968.87

LIABILITIES AND PARTNERS' EQUITY

LIABILITIES
Accounts Payable 5 2,013,440.15 2,833,156.61 3,338,692.79 3,655,769.11 3,856,441.25
VAT Payable 168,356.40 341,262.15 382,361.01 425,765.86 472,718.74
Income Tax Payable 14,515.44 95,772.05 181,857.89 273,022.58 369,528.34
Salaries Benefit Payable 7,634.50 7,634.50 7,634.50 7,634.50 7,634.50
Total Liabilities 2,203,946.49 3,277,825.31 3,910,546.19 4,362,192.05 4,706,322.83

EQUITY
Alcaraz, Capital 1,258,467.34 1,310,334.37 1,411,618.14 1,565,121.31 1,773,767.51
Alviar, Capital 1,258,467.34 1,311,334.37 1,413,818.14 1,568,761.31 1,779,135.51
Del Castillo, Capital 1,258,467.34 1,313,334.37 1,418,218.14 1,576,041.31 1,789,871.51
Robis, Capital 1,258,467.34 1,314,334.37 1,419,218.14 1,577,041.31 1,790,871.51
Total Equity 5,033,869.36 5,249,337.47 5,662,872.55 6,286,965.24 7,133,646.04
TOTAL LIABILITIES AND EQUITY 7,237,815.85 8,527,162.78 9,573,418.73 10,649,157.30 11,839,968.87

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Statement of Cash Flows

ADAR Company
Statement of Cash Flows
As of December 31, 2022 - 2026

Schedule 2022 2023 2024 2025 2026

CASHFLOW FROM OPERATING ACTIVITIES


Net Income (Loss) Before Tax 48,384.80 319,240.16 606,192.97 910,075.28 1,231,761.14
Adjustments for:
Depreciation 13 348,752.88 348,752.88 348,752.88 348,752.88 348,752.88
Operating income before changes in
397,137.68 667,993.04 954,945.85 1,258,828.16 1,580,514.02
operating assets and liabilities
Changes in operating assets and liabilities
Decrease (increase) in:
Raw Material Inventory 1 (1,126,159.01) (9,509.87) (9,543.41) (9,577.04) (230.96)
Accounts Receivable 2 (1,253,657.99) (566,358.29) (294,740.31) (189,560.78) (151,130.61)
Prepaid Rent (660,000.00) - - - -
Office and Production Supplies 3 (27,142.00) - - - -
Increase (decrease) in:
Accounts Payable 5 2,013,440.15 819,716.47 505,536.17 317,076.32 200,672.14
VAT Payable 168,356.40 172,905.74 41,098.87 43,404.85 46,952.88
Salaries Benefit Payable 7,634.50 - - - -
Cash generated from (absorbed by) operating activities (480,390.27) 1,084,747.09 1,197,297.16 1,420,171.51 1,676,777.47
Income Taxes Paid - (14,515.44) (95,772.05) (181,857.89) (273,022.58)
Cash generated from (used in) operating activities (480,390.27) 1,070,231.65 1,101,525.12 1,238,313.62 1,403,754.88
CASHFLOW FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment 4 (1,985,962.00) - - - -
Cash generated from (used in) investing activities (1,985,962.00) - - - -
CASHFLOW FROM FINANCING ACTIVITIES
Partners' Contributions 5,000,000.00 - - - -
Partners' Withdrawals - (8,000.00) (10,800.00) (12,960.00) (15,552.00)
Cash generated from (used in) financing activities 5,000,000.00 (8,000.00) (10,800.00) (12,960.00) (15,552.00)
Net Increase (Decrease) in Cash 2,533,647.73 1,062,231.65 1,090,725.12 1,225,353.62 1,388,202.88
Cash, Beginning Balance - 2,533,647.73 3,595,879.38 4,686,604.49 5,911,958.12
Cash, Ending Balance 2,533,647.73 3,595,879.38 4,686,604.49 5,911,958.12 7,300,161.00

Product Costing
PRICING STRATEGY

Raw Materials Quantity Price Total Amount


Stainless metal sheet 1 1,100.00 1,100.00
Stainless steel shaft 1 220.00 220.00
Non-stick griller pan 1 180.00 180.00
Bolts and Nuts 4 11.20 44.80
Loose pin hinger 4 8.33 33.32
Latches lock 3 22.50 67.50
Cabin hook 1 72.00 72.00
Box 1 22.00 22.00
Styrofoam corner protector 4 22.88 91.52
SUBTOTAL 1,831.14
Direct labor 171.48
TOTAL UNIT COST 2,002.62
VAT (12%) SPCBA RESEARCH CENTER 240.31
SELLING PRICE - VAT Inclusive 2,242.93
Mark-up (30%) 672.88
SELLING PRICE 2,915.81
124

Chapter 7: Socio-Economic Study

The business must not only profitable but also advantageous to the economy and

society therefore, ADAR Manufacturing proponents studied the socio- economic desirability

when it comes to the workers that shall be employed to the company as well as the

employees and company taxes to be paid in the government, also the accrue benefits for the

people in the community and vicinities. This part of the study has an impact to the

governments, consumer, suppliers and society either the benefits that they gain from the

company.

Objectives of the Study:

 To determine the company's economic engagement activities.

 To determine the company's environmental engagement activity.

 To create a budget contribution to the local economy by paying taxes.

 To offer consumers with a functional design that will allow them to get the most out of

the product.

Contribution to the Philippine Economy

ADAR Manufacturing will help the Philippine economy by producing a useful product

that will meet the needs of future consumers and the community.

To maximize the amount of money that consumers will spend, the company has

chosen the best quality and types of materials to be used for the product, as well as

conceptualized the functionality and features that this product can offer.

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Employment Generation

The structure of the proposed project was to provide employment opportunities for

the residents of San Pedro City. ADAR Manufacturing Company would need staff or

personnel that will be part of current and future overall operation of the business

considering the proximity to the manufacturing site for the easiest way to transport and

communicate to the workers. The company will focus on choosing the workers that will fit to

the requirements needed in order to be more effective and efficient.

The employment rate of area will stimulate as the company prioritize the hiring of

workers from residents of San Pedro City.

Social Desirability

The company will manufacture Foldable Griller with Stove to customers so that they

can use it when they will be having an occasion. The Foldable Griller with Stove has more

features than other grillers that are not intended for use with grilling.

People

People were consisted of consumer, suppliers, employee and residents living near

the manufacturing or site, which have a big part in the operation of the business. For the

socio-economic responsibility of the customers, the mission of ADAR Manufacturing

Company was to satisfy the customer by providing a good quality of product. ADAR

Manufacturing Company wants to be partner of the consumer to test the Foldable Griller

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126

with Stove and to satisfy the customer.

References:

High quality 304L stainless steel pipe. (n.d.). Retrieved March 27, 2018,

from http://www.xiyemetal.com/product_detail/high-quality-304l-stainless-

steel-pipe- 15204738386872964.html

RBS STAINLESS STEEL SUPPLY AND FABRICATION COMPANY | Metal


and Steel

Manufacturing | 5th Road, Muntinlupa City, Metro Manila. (n.d.). Retrieved

March 27, 2018, from http://www.yellow-pages.ph/business/rbs-stainless-

steel-supply-and- fabrication-company

Partnership. (n.d.). Retrieved March 27, 2018,

from

https://www.entrepreneur.com/encyclopedia/partnership

(n.d.). Retrieved March 27, 2018, from

https://www.google.com.ph/maps/place/RGG Stainless Steel and Metal

Fabrication

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A Brief History of Grilling. (n.d.). Retrieved November 14, 2021, from

https://www.foodnetwork.com/recipes/articles/a-brief-history-of-grilling

Philippines Inflation Rate 2021/ Data / Chart/ Calendar / Forecast

September 2021, Retrieved November 14, 2021 from

https://psa.gov.ph/statistics/survey/price/summary-inflation-report-

consumer-price-index-2012100-september-

2021#:~:text=Philippines&text=This%20brings%20the%20country's

%20average,September%202021%20at%204.5%20percent.&text=The

%20slower%20pace%20in%20the,percent%20in%20the%20previous

%20month.

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Thread: Amount of electricity used by a 13" South bend lathe. (n.d.).

Retrieved from

https://www.practicalmachinist.com/vb/south-bend-lathes/amount-electricity-

used-13- south-bend-lathe-250945.

Estimating your Power Demands. (n.d.). Retrieved

from

https://www.rpc.com.au/information/faq/system-design/estimate-

demands.html.

Thread: Amount of electricity used by a 13" South bend lathe. (n.d.).

Retrieved from

https://www.practicalmachinist.com/vb/south-bend-lathes/amount-electricity-

used-13- south-bend-lathe-250945.

Thread: KW consumption. (n.d.). Retrieved

from https://weldingweb.com/showthread.php?47264-KW-

consumption.

Four factors to consider when purchasing a grinder: You get what you pay

for. (n.d.). Retrieved from


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129

https://www.thefabricator.com/article/cuttingweldprep/four-factors-to-

consider-when-purchasing-a-grinder--you-get-what-you-pay-for.

Industrial fan. 1kwh

Electricity usage of a Ceiling Fan. (n.d.). Retrieved from

http://energyusecalculator.com/electricity_ceilingfan.htm

Electricity usage of a CFL Light Bulb. (n.d.). Retrieved from

http://energyusecalculator.com/electricity_cfllightbulb.htm

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130

Electricity usage of a CFL Light Bulb. (n.d.). Retrieved from

http://energyusecalculator.com/electricity_cfllightbulb.htm

Calculate Electricity Usage. (n.d.). Retrieved

from

http://energyusecalculator.com/calculate_electrical_usage.htm

Robertson, L., Fox, O., & Palmer, G. D. (n.d.). How Many Watts Does a

Computer Use? Retrieved from https://www.techwalla.com/articles/how-

many-watts-does-a-computer- use.

Electricity usage of a Printer. (n.d.). Retrieved from

http://energyusecalculator.com/electricity_printer.htm.

Electricity usage of a Wi-Fi Router. (n.d.). Retrieved from

http://energyusecalculator.com/electricity_wifirouter.htm.

Saving Electricity. (n.d.). Retrieved from


https://michaelbluejay.com/electricity/tv.html.

Reduction Revolution. (2013, May 10). Water Cooler / Water Boiler Energy

Consumption Revealed. Retrieved from

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131

https://reductionrevolution.com.au/blogs/news- reviews/57786245-water-

cooler-water-boiler-energy-consumption-revealed.

How Many Watts Does an Air Conditioner Use? (2013, January 18).

Retrieved from https://www.senicaair.com/blog/how-many-watts-does-an-

air-conditioner-use.

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Electricity usage of a Ceiling Fan. (n.d.). Retrieved

from http://energyusecalculator.com/electricity_ceilingfan.htm.

Industrial EmergencyLight: 12 Volt: 50 or 100 Watt. (n.d.). Retrieved

from https://www.exitlightco.com/product/EL-50-HD12.html

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APPENDIX

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134

Survey Questionnaire

SPCBA RESEARCH CENTER


135

SPCBA RESEARCH CENTER


136

Survey Results
PERCENTAG
QUESTIONS FREQUENCY E
1.       Do you have griller at home?
a.       Yes 283 71.10%
b.       No 115 28.90%
398 100.00%
2.       What type of griller do you usually use?
a.       Standard griller (Traditional
griller) 136 34.10%
b.       Electric griller 74 18.60%
c.       Improvised griller (sariling gawa) 97 24.40%
d.       I don't have any 91 22.90%
398 100.00%
3.       How often do you use griller?
a.       Once a month 29 7.30%
b.       Twice a month 212 53.20%
c.       3 or more times a month 157 39.50%
398 100.00%
4.       Are you familiar with Korean griller?
a.       Yes 377 94.70%
b.       No 21 5.30%
398 100.00%
5.       Which feature in the product is more
valuable for you?
a.       Traditional Griller 119 29.80%
b.       Korean Griller 36 9.10%
c.       Stove 87 21.90%
d.       All of the above 156 39.20%
398 100.00%
6.       Are you willing to buy our product?
a.       Yes 365 91.70%
b.       No 33 8.30%
398 100.00%
7.       Which factor do you consider in buying
our product?
a.       Quality 175 48.10%
b.       Size/weight 55 15%
c.       Functionality 81 22.10%
d.       Conveniency 54 14.80%
365 100.00%
8.       Where do you want to purchase our
product?
a.       Online/Social Media Shops 223 56%
b.       Public Market 130 32.70%
c.       Malls/Supermarket 45 11.30%
398 100%
9.       What form of advertising attracts you the
most?
a.       Online/social media
Advertisement 281 70.60%
b.       Newspapers/Magazines 23 5.80%
c.       Tarpaulin/Posters 20 5%

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d.       Television/Radio Advertisement 74 18.60%


398 100.00%
10.   Will you recommend our product to
others?
a.       Yes 375 94.20%
b.       No 23 5.80%
398 100.00%

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SSS Contribution

https://www.sss.gov.ph/sss/DownloadContent?fileName=2021-
CONTRIBUTION-SCHEDULE.pdf

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PAG-IBIG Contribution

https://techpilipinas.com/pag-ibig-contribution-table-payment-schedule/

PhilHealth Contribution

https://www.philhealth.gov.ph/news/2019/new_contri.php

SPCBA RESEARCH CENTER

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