Chapter 3 Technical Aspects

A technical aspects is an assessment of the logistical aspects of a business operation. It

includes segments on necessary materials, labor and technology, and other aspects regarding

bringing the raw materials into a finished product ready for trade. Plant layout, size and

production schedule are all presented for the purpose of identifying the business operation. Also,

product specifications, the product processes, the list of machinery, tools, and equipment are

enumerated with their corresponding costs.

In this chapter, the proponents will show and illustrate the entire process in have a Pocket

Mug and put into details everything that the product would be using that concerns technical

issues in order for the business to be realized and known.

DIRECT LABOR REQUIREMENTS

For a business, it needs employees to be able to produce, operate and sell products or

services. Owners are also considered as employees of the business. Labor is essential when it

comes to production of raw materials to by-products or render services.

ReGeAn Co. will need few employees in order to create mug. It shall serves to give a

quality drinkware, choose the right employees that will suit the needs and requirements of the

business.

The worker needed in the production of Pocket Mug is productive and effective worker.

ReGeAn Company is a manufacturing company which needs three (3) employees that will be

responsible for managing the company and another three (3) employees for molding, designing,

and packaging the mug.

 Table 18. Direct Labor Cost

Workforce Number of Worker Monthly Salaries Annual Salaries

Manager 1 15,000.00 180,000.00

Production Head 1 13,000.00 156,000.00

Sales Person 1 11,500.00 138,000.00

Helper 3 6,325.00 75,900

(Molder, Designer,

Packager)

TOTAL 6 45,735.00 549,900.00

Table 18 shows the monthly and annual salary of the workers. Salary depends on how

well did you do during office hours.

DESCRIPTION OF THE PRODUCT

Pocket Mug is a manufacturing industry that primarily made of 100% ceramics. It is

categorized as a crafted goods. The proponents offers variety of unique style of mugs that suits

the consumer needs in maintaining posture and cleanliness while drinking hot beverages. The

unique pocket mug design makes this an ideal gift to all your love ones in any occasion

especially to the coffee/biscuit lover.

USES OF THE PRODUCT

The most common use for the mug is to house hot beverages, including coffee, tea and

hot chocolate. These are usually found in casual setting and are most often made of ceramics.

Ceramics are generally thought of as inorganic and nonmetallic solids with a range of useful
properties, including very high hardness and strength, extremely high melting points, and good

electrical and thermal insulation.

This durable ceramic mug is the perfect gift in any occasion, because it is something a

gift recipient might use every day. With the sentiment, it’s designed to evoke a smile or offer an

uplifting reminder that keeps the gift giver top of mind. Pocket mugs are a way to raise money

for your non-profit organization or business. They make practical, low-cost gifts that most

people enjoy.

Mugs are versatile in their uses and eye-catching in their design.

PROCESS METHOD

Step 1: Create a prototype of the mug in plastic or plaster.

Plastic is preferred as it does not get damaged during the mold casting.

This prototype can either be carved or handmade and contains details

which are desired for the final product.

Step 2: Create the molds.

This is an important step as it is the means to replicate the ceramic mugs.

In most cases, several molds are created to increase productivity. They

contain four parts: two halves for the body and two halves for the handles.

Step 3: Cast the clay into the mold.

 There are three kinds of clay material which can be used to make the

mugs: stoneware, porcelain or earthenware. The clay is diluted and then

cast into the molds.

Step 4: Leave clay to harden.

In this step, the plaster mold will be absorbing the moisture from the clay.

Step 5: Remove molds from the hardened clay.

Step 6: Place the hardened mugs into a kiln for the firing process.

The industrial kilns are usually capable of holding hundreds of cups and

come with plenty of shelves. The temperature will be dependent on the

clay material used. For example, porcelain will require 2,600 degrees

Fahrenheit. On the other hand, earthenware requires temperatures below

2,100 degrees Fahrenheit.

Step 7: Glaze the ceramic mugs after they have cooled down.

This will create the glossy look of the ceramic mugs.

Step 8: Prepare cups for second firing.

Duration will be dependent on type of glaze used.

Step 9: Remove the ceramic mugs from kiln and allow them to cool down.

SCHEDULE OF WORK

Number of Days in one year 365

 Less: Non-Operating Days

Sundays 52

Legal Holidays 11

Special Holidays 7

70

Total Number of Operating Days 295

PRODUCTION CAPACITY

Operating hours/Day = (Standard working hr.) (No. of workers per shift) (No. of

shift per day)

= 8 hrs (3) (1)

= 24 hours

No. of units produced/Day = Operating hours/Processing Time

= 24hrs/45mins

= 32 units

Annual Capacity = No. of units produced per day * No. of operating days

= 32 units * 295 days

= 9,440 pcs. Of Pocket Mug

SUPPLIES, TOOLS AND EQUIPMENT

Table 19. Raw Materials

Ingredients Quantity Unit of Unit Cost Total Cost

Measurement

Pottery Clay 24 Lb boxes 107.88 2,589.12

Ceramic Glaze 4 jar 595.08 2,380.32

Acrylic Paint 10 Jar 110.40 1,104.00

Total Cost 6,073.44

Table 19 shows the list of raw materials that will be using in manufacturing of Pocket

Mug.

SUPPLIES AND PRODUCTION MATERIALS

Table 20. Production Materials

Items Quantity Unit Cost Total Cost

Box (for mug) 50 10.00 500.00

Box (for delivery) 20 5.00 100.00

Bubble Wrap 10 34.00 340.00

Packaging Tape 15 19.00 285.00

Carving tools 1 set 1,341.60 1,341.60

Paint Brush 5 32.00 160.00

 Gloves 2 pairs 50.00 100.00

Sponge 5 25.00 125.00

Monoblock Chairs 3 55.00 165.00

Table 3 1,000 3,000.00

Total Cost 6,116.00

Table 20 shows the list of production material that will be using in manufacturing and

packaging of Pocket Mug.

SUPPLIES AND OFFICE EQUIPMENT

Table 21. Office Supplies

Items Quantity Unit of Unit Cost Total Cost,

Measurement VAT Inclusive

File folder short 10 Pieces 3. 00 30.00

File folder long 10 Pieces 5.00 50.00

Bond paper short 1 Reams 157.00 157.00

Bond paper long 1 Reams 186.00 186.00

Record book 3 Pieces 70.00 210.00

Cash Voucher 3 Set 8.00 24.00

Purchase order 1 Set 112.00 112.00

Time card 1 Set 40.00 40.00

Columnar sheet 2 Pad 49.00 98.00

 Order slip 5 Set 37.00 185.00

Delivery receipt 5 Set 17.00 85.00

Document
10 Pieces 56.00 560.00
envelope long

Document
10 Pieces 42.00 420.00
envelope short

Ball pen 1 Box 85.00 85.00

Pencil 1 Box 60.00 60.00

Marker 2 pieces 30.00 60.00

Paper clip 5 Box 9.00 45.00

Staple wire 5 Box 25.00 125.00

Paper fastener 1 Box 25.00 25.00

Printer ink 1 Cartridge 270.00 270.00

Marker Refill
1 bottle 40.00 40.00
Ink

White board
1 piece 10.00 10.00
Eraser

Scotch tape 3 Pieces 8.00 24.00

Correction tape 3 Pieces 19.00 57.00

Sticky note 4 Pieces 17.00 68.00

Scissors 4 Pieces 23.00 92.00

Sharpener 5 pieces 8.00 40.00

Push pin 1 Box 8.00 8.00

 Binder clips 1 Box 35.00 35.00

Clear book short 2 Pieces 27.00 54.00

Clear book long 2 Pieces 33.00 66.00

Clipboard 2 Pieces 49.00 98.00

Calculator 3 Pieces 425.00 127.5

Total Cost 3,546.50

Table 21 shows the list of supplies and office equipment to be used by the proponents and

other employees for recording and monitoring the production.

OFFICE FURNITURE AND FIXTURES

Table 22. Office Furniture and Fixtures

Particulars Qty. Unit cost Useful life Yearly Total Cost,

Depreciation VAT

Inclusive

Office table 3 2, 500. 00 5 250 7,500.00

Office chair 3 2,995.00 5 299.5 8,985.00

Filling 1 5,000.00 5 500 5,000.00

Cabinet

White board 1 239.00 5 23.9 239.00

Cork board 1 190.00 5 19 190.00

Flourescent 4 500.00 5 50 2,000.00

Desk lamp 3 800.00 5 80 2,400.00

 Wall clock 2 199.00 5 19.9 398.00

Insulation 25 (meters) 99.00 5 247.5 2475.00

Foam

Emergency 2 839.00 5 167.8 1,678.00

light

Total Cost 30,865.00

Table 22 shows the list of furniture and fixtures to be used under the premises of the

office.

MACHINERY AND EQUIPMENT

Table 23. Machines

Particulars Qty. Useful life Yearly Price

depreciation

Kiln 1 5 3,000 30,000.00

Pottery wheel 1 5 2,500 25,000.00

Total Cost 55,000.00

Table 23 shows the list of machinery needed in production of Pocket Mug.

OTHER TOOLS AND MAINTENANCE SUPPLIES

Table 24. Maintenance Supplies

Items Unit cost Total cost, VAT

Qty.
Inclusive

Fire Extinguisher 2 2,000.00 4,000.00

First aid kit 2 200.00 400.00

Floor Mop 2 141.00 282.00

Trash Can 5 145.00 725.00

Dust Pan 5 24.00 120.00

Garbage Bag 2 39.00 78.00

Broom 5 194.00 970.00

Rags 20 6.00 120.00

Total Cost 6,695.00

Table 24 shows the maintenance supplies that will be used in maintaining cleanliness and

safeness in the business.

OFFICE EQUIPMENT

Table 25. Office Equipment

Equipment Qty. Unit cost Useful life Yearly Total cost

depreciation

Computer 2 21, 999.00 5 2,199.9 43,998.00

Desktop

All-in-one 2 11,000 5 1,100 22,000.00

printer, fax,

scanner, and

photocopy

Aircon 1 5

Industrial Pan 4 5,395.00 5 539.5 21,580.00

Tape 3 58.00 5.8 174.00

5
dispenser

Stapler 3 42.00 5 4.2 126.00

Puncher 3 70.00 5 7 210.00

Water 2 6739.75 5 674 13,479.50

Dispenser

Total Cost 101,567.50

Table 25 shows the list of office equipment to be used by the proponents and employees

for encoding and monitoring the production.

UTILITIES

What utilities your business requires will depend on the nature and size of your business

operation. For ReGeAn Co. it shall have expenditure in utilities expense such as rent, electricity,

telephone line, internet connection and water supply.

1. Electricity

As the company utilize different electronic equipment’s, a bulk of the utilities

expense will be for electricity consumption. This includes computer usage, machine

usage, and lighting. Moreover, the need for the air-conditioning unit will be significant.

2. Water

As the basic need, water will be an necessary utility because it will be used as an a

solution primarily for cleansing purposes.

3. Telephone and Internet Connection

The utility of telephone and internet will also be vital for the business. Telephones

maybe traditional but it will provide additional opportunities to reach out customers and

even suppliers. On the other hand, Internet Connection will be used to create awareness

for the product and also it can be used for selling purposes.

4. Rent

The place where the business will operate will be a big consideration. To get the

best out of rent utility the proponents had a big consideration for the accessibility in

physiological aspect of the establishment. For a starting business the rental space will be

a significant investment both in up-front deposit cost’s in a monthly commitments.

 Table 26 Cost of Utilities

Utilities Expense Monthly Annually

Rent 11,500.00 138,000.00

Electricity 5,000.00 60,000.00

Telephone and internet 1,999.00 23,988.00

connection

Water 1,000.00 12,000.00

Total 19,499.00 233,988.00

Table 26 shows cost of utilities will incur by the ReGeAn Co. during the business

operation.

WASTE DISPOSAL

The appropriate disposal of waste will be obligatory and prioritize to guarantee

cleanliness in the community. The proper waste disposal is a necessity to ensure the health and

welfare of the consumers and all those who would be involved.

The proponents prepared procedures to deal with wastes. First there will be an allocated

section in business office, Second is checking waste disposal to assure that it won’t get mixed up

with the garbage of the other residents living in the vicinity. Lastly, at the end of each operating

day the garbage would be dump at the garbage collector’s bin nearby. The proponents will be

very attentive as to the proper waste disposal of the business so as to impart in keeping

community.
VICINITY MAP

ReGeAn
Co.

Figure 6. Vicinity Map