CHAPTER 4 TECHNICAL STUDY This chapter discussed the whole operation of the business upon technicalities. It also states the specifications of products, raw materials and supplies, and manufacturing/production process that transform raw materials into an outstanding finished product. Plant/facility size and production schedule, machinery and equipment, utilities, waste disposal and total production costs are also presented for the identification of efficient and effective business operation. 4.1 Product The proposed product, Cocos Palmae Tea, is a tea made from Coconut Husk. The design and color of the proposed product is a white cloth-like sachet that is filled with dried chunks coconut husk, toasted ginger bits and dried pandan leaves. The sachet is covered with brown paper to prevent dirt and dust from contaminating the proposed product. The size of the proposed product is 7 centimeters length and 5 centimeters width with a dimension of a small square, for the weight of the proposed product it is 2.5 grams per teabag. Husk Tea is created by cutting the dried coconut husk into a chunk, adding one cup of boiled water that allow the coconut husk to release all of its nutrients. This simple process allows us to have a cheap but competitive product that are very easy to sell in the market. Figure 4.1.1 Actual Picture of Finished Product4.2 Raw Materials and Supplies 5 The raw materials needed for production with corresponding description, quantity and costs are presented in the table. As the main component of the tea product, Venus Fruits and Vegetable dealer, is an exporter of Coconut, Coconut husk and other vegetables and Libang’s Farm will be the main supplier that can sustain the proposed business upon delivering along the manufacturing site in Balanga City, Bataan. Together with other ingredients namely Ginger and Pandan leaves that will give an additional health benefits and aroma. The packaging materials include the teabag/sachet, brown paper, and tea box will be supplied by green apple which also resides in Balanga City. Table 4.2.1 Raw Materials for Production Raw Material for Production Particulars Description Quantity [Unit Cost__| Total Cost Coconut Husk | Dried ae PHP 5.00 | PHP 5.00 sh Ginger Ripe, Yellow 15 grams _| 0.13/grams 195 Pandan Leaves | Mature Green Tpiece PHP 2.00 2.00 Tea Sachet White, Small 10 pieces _| 1.25/piece 12.50 Brown Paper Plain I sheet PHP 5.00 5.00 Tea Box ‘Small, Plain Box Ipiece | 5.00/box 5.00 Large (40x40x35em), | 1 whole Carton Box Plain Box Box 15.00 13.00 Total The following suppliers are chosen based on the practicality of the nearest possible location, where it easily delivers the necessary raw materials needed by the business to operate.4.3 Manufacturing Process This part enumerates the procedures in manufacturing Coconut Husk Tea. It will be narrated distinctly, plainly, and consistently, Procedure Step 1— Gathering For the first procedure, we will be going to collect 1600 grams of ingredients which includes ginger, pandan leaves, and coconut husk. The use of the industrial chiller will take place to improve the lifespan of the ingredients (ginger and pandan leaves) and to prevent them from spoilage. This process takes only 1 minute before proceeding to the next part. Step 2-1" Cutting/Chunking Chunk the coconut husk into small pieces to fit in the teabag. This process will take 2 minutes. The use of a dry ingredient crusher machine will shorten the time in mincing the ingredients to fit in the teabag. Step 3 — Rinsing Washing of ingredients would remove the dirt that came from the supplier's farm. Use vegetable, fruit, and leaf washer with dryer machine to wash the ingredients faster. It will take 2 minutes to thoroughly clean for the quality of the ingredients.Step 4— Peeling The ginger peel would be disposed of, for it has no-use. For this process, an automatic pecling machine will be utilized. Itwill take 2 minutes to completely peel 1 kilogram of ginger. *Step 4 — Ginger Peeling Machine (Sub-Process) Since, peeling the ginger is one of the most time- consuming processes in the production. The company will be going to use a peeling machine that speeds up the process of washing and pecling the ginger. This machine has a capacity of 150kg/hr. —_(0.04166666666kp/sec, _41.66666666g/sec, 2.5kg/min). Step 5 — Drying/Baking Put the Pandan leaves in the industrial 8 tray oven with a temperature of 120 degrees Celcius in about 3 minutes. This process will dry the pandan leaves and cook them to activate the nutrients and aroma of the leaf. After 3 minutes remove it from the oven to cool down. Then put the chunk coconut husk in the oven to dry and toast it, for 5 minutes with a temperature of 150 degrees Celcius. Step 6-2" Cutting The cutting process will be for the peeled ginger and dried/toasted pandan leaves. The use of a dry ingredient crusher machine will shorten the time in mincing the ingredients to fit in the teabag. 41*Step 6.1 — Industrial Grinder for Food Model 11-09 (Sub- Process) Just in case there’s a need for mass production, the company will be going to use this type of industrial machine to speed up the process of cutting. This machine has a capacity of 72,000Ibs/hr. (20Ibs/sec, 12001bs/min, 9071.84g/sec) Step 7— Toasting Over the stove, toast the ginger bits for 5 minutes to trigger the nutrients and aroma, After the time allotted for the toasting process, set the ingredients aside to cool down. Step 8 — Quality Checking Check the ingredients to know if there is a burned item and clean the excess husk in the coconut chunks. If so, then dispose of the items that are burned and excess parts and if there is none, proceed to the stuffing process. It is important to check all the ingredients to prevent a bitter taste in the product and to ensure that the required requirements are met during the process. 2Step 9— Measuring Afler quality checking, the next Process is to measure the specific amount to be stuffed in the teabag. The use of a weighing scale is needed to prevent the over-powering of any ingredient. One teabag should have 1.Sgrams of chunk coconut husk, 0.7 grams of ginger bits, and an estimation of 0.3 grams of pandan leaves for additional aroma and flavor. Step 10— Stuffing The use of a tea packaging machine will stuff the ingredients in the teabag, then poke a hole on the top of the teabag living a strand for holding. This process will take 2 ‘minutes in stuffing 10 pieces of teabag, Step 11 - Sealing This process will also be utilized using the tea packaging machine to seal the product to prevent contamination, It will also serve as the second layer of packaging for the product, this process will take 2 minutes in sealing 10 pieces of teabag. *Step 11.1 ~ Tea Bag Packing Machine (Sub-Process) In the production of large amount of Cocos Palmae Tea, ‘Workers will utilize the use of a packing machine to speed up the packing process, This machine has a capacity of 30-40 Pouches/min, (1800-2400 pouches or teabag/hr.) 43Finished Product The finished product is shown, both with and without covering of brown paper. In addition, the use of machines will not change anything about the properties or characteristics of the ingredients or products, They will be used to speed up the process not to powdered or pulverized the ingredients. The usage of machines can only be seen during mass productions, especially if there’s a large number of orders. We may not able to compute for the efficiency of the machines, as we prioritize the use of manual process, but it doesn’t mean that we don’t need it anymore.Figure 4.3.1 Manufacturing Process Flow Chart The above figure shows the flow chart of the production process of the company. This flow chart allows people to see the different sequence of activities involved in producing our proposed. product, together with their respective time. Also, itis a very useful quality tool that enables us to see the overall operation and the potential areas of constraints or problems. as4.3.1 Constraint in Manufacturing Process In this part, we will present the constrain y process together with its possible solution presented in below figures overcome, eliminate, or if possible, to mitigate the bottlenecks. nt that we identify in our manufacturing and tables, to Identifying the Constraint To ensure the profitability of the company, A and minimize the bottleneck in the manufacturing process. One of the easiest Way identify the bottleneck is to assemble the procedure in a flowchart, as shown in Figure 4.3.1.1, and identify the process which consumes and wastes a large amount of time. we have to carefully analyze, observe, is to 19/Baking mins, Dryin 8 Quality Measurin Checking ee 2 mins Figure 4.3.1.1 Bottleneck of the Process For the manufacturing process of the company, the identified constraints are the Drying/Baking and Toasting, it is because they are the longest time in the process. For further illustration, we provided the following table below which presents the availability of each ingredient in every process or procedures. In this table, we observe that some ingredients are in ideal, that is because cach procedure used different types of ingredients. For example, toasting is only performed to toast the ginger bits, not the pandan leaves or the coconut husk, in that way some of the ingredients must be set aside and wait before proceeding onto the next part as shown in Table 4.3.1.1 below.z 5 s Ss 5 es = 5 » 0 | mw wim} 4 8) OE » a w |e o | a jaja | wo [im | m [ww | 0 [wo] | mo) tw ‘Table 4.3.1.1 Idle Ingredients ‘The First Constraint — Drying/Baking Drying/Baking is considered as the first constraint or bottleneck because it has the longest time in the manufacturing procedure. It is a two different process that uses two separate ingredients using the same industrial oven, ‘The drying process is used to dry the pandan leaves in 3 minutes with 120 degrees Celsius, while baking is used to bake chunks of coconut husk in 5 minutes with 150 degrees Celsius. (Step 5 — Drying/Baking of the manufacturing process). The constraint is caused by the machines themselves and we cannot speed up the process, or eliminate it, as shown in below figures, just to improve the efficiency of the production time and schedule. The time allotted for these procedures is very viral because it will affect the taste of the final products. So, we need to finish this process, ingredients-by-ingredients, before we proceed onto the next part of the manufacturing procedures. INPUT OUTPUT 3 minutes celia. DRYING/BAKING = 7q E — Dried Pandan Leaves Industrial on Oven Chunks Cocont Baked Coconut Husk Husk Figure 4.3.1.2 Drying/Baking 47To solve the problem, we decided to implement the possible solution below. Solution Since, we cannot eliminate this constraint, we will be going to use two different industrial oven which consumes the same amount of electricity, so, it will change nothing in monthly electrical expenses of the company. Also, these changes will improve the time efficiency of the production as we change the temperature and time of Drying from 3 ‘minutes to 4 minutes and from 120 Degrees Celsius to 110 Degree Celsius as shown in figure 4.3.1.3 below. oRYING {4minsin 110°C) BAKING [ome | (4minsin 150°C) CHUNKS OF COCONUT HUSK Figure 4.3.1.3 Drying/Baking Process Improvements The Second Constraint - Toasting ‘The second identified constraint of the manufacturing process is Toasting, as shown in Figure 4.3.1.4. Toasting has the second longest time in the process which slows the overall performance of the productions. This process cannot be eliminated because if we change the time or reduce the temperature, it will affect the flavor of the products, 48TOASTED GINGER BITS Figure 4.3.1.4 Ginger Bits Toasting 3.2 mm Thickness | — Figure 4.3.1.5 10-Gauge Frying Pan In this process, we will be going to use a frying pan with a thickness of 10-gauge or 3.2 mm, as shown in Figure 4.3.1.5, it will take 5 minutes before the heat flows into the cooking surface. The constraint in this process is caused by the equipment, which slowdown the operation of the production, Therefore, in order to addressed the issue, we will be going to change the equipment used in this process The solution for this constraint is presented in bellow figures. Solutions Since, we cannot climinate this constraint, we will change the type of frying pan used in this process to speed up the toasting from 5 minutes to 4 minutes. The company is aagoing to use a 22-gauge or 0.7 mm frying pan which is thinner than the previous one, which has a thickness of 10-gauge or 3.2 mm, 0.7 mm Thickness La Figure 4.3.1.5 22-Gauge (0.7mm) Frying Pan Packaging After changing the type of frying pan used in the toasting process, the company allotted a 1-minute spare time for the packaging procedure. Packaging will help the company to improve the shelter life of the product during the delivery while ensuring and maintaining its quality and safety. Since the product is Tea, we have to be careful about the types of materials that we are going to use for packaging in order to protect it from oxygen exposure and moistures, For better illustration, we provided the following packaging materials below that will be used by the company. 1. Corugated Cardboard Packaging 502. Sealed Plastic is in the world. It presentation Sealed plastic is one of the most attractive packaging mat allows us to preserve the flavors of the produit and provide an art which attracts a lot of, customers or consumers. 4.3.2 Adjusted Manufacturing Flowchart After addressing the constraint, the manufacturing flow chart of the company will also be changed. This adjusted manufacturing flowchart helps the company to maintain the production time and schedule without adding manpower or changing any process or procedures. It will also be used to make changes and improvements for future constraints that might occur during the implementation of the business operation. ee ST new eal rae f {cues [me pf recave fp ee» —[ = [see freee} 4 i Figure 4.3.2.1 Basic Manufacturing Flowchart 51To better understand the number of outputs produces in terms of days, weeks, and years. We provided the following computation below which will be presented in below table. In this computation, we include the number of batches per days and per production time (8 hours/days), no. of grams, and the number of the total outputs. Since; 1 hour of production is equals to 8 batches and 200 grams of ingredients which inchides, a. 120 grams of cocomut husk b. 56 grams of ginger bits c. 24 grams of pandan Leaves where; 1 teabag is equal to 2.5 grams which includes; a. 1.5 grams of coconut husk b. 0.7 grams of ginger bits c. 0.3 grams of pandan leaves As we all know that 8 batches are equal to 1 hour of production time which is equal to 640 pieces of teabag in 64 batches produced only by one worker from 8:00am to 5:00pm of working hours. To get the output produces by two workers, we provided the following computations below. Computation: Since, we collect 1600 grams of ingredients (during the process of gathering) for 1 hour of production and, a. | batch is equal to 10 pieces of teabag and, b. 1 teabag is equal to 2.5 grams Then, 1600 grams x Lettld. = GAO PIES of teatag x 2(2 workers) = [80 WaBae BOEORY 1batch 640 pieces-of teabag x TT rcabag = ; 1 batch 1200 peces of teabag a a” In a day, each workers can produce 64 batches of tea product which has 640 pieces of teabag. When we combine 2 workers, they produce 1280 pieces per day in 128 batches and, 52a. 7680 pieces per week (6 days) in 768 batches with 19,200 grams 128 batch 6 days x “obec 7680 pe 25 2.5 grams 9200 grams b. 30, | “9% 1 ae Ta 24 days: Zo batches a aeeel betel Tay 202 bath 3 OS Seo Thatch 36,864 batches x ———__——> = * Thatch c. 368,640 piece per year (288 days) in 36864 batches with 921,600 grams. 128 batches 288 days x 2.5 grams 30,720 plees-of teabag x no rabag = 2.5 grams 368,640 pieces of teabag x or raabag So, the total grams are 200 grams in 8 batches and 25 grams in 1 batch. 1 200 grams _ We also provide the following table below to showcase the number of batches, sbag produced by cach worker using the standard procedure, as grams, and pieces of tea shown in Table 4.3.2.1 We also include the total output of 2 workers in terms of days, weeks, and years as shown in Table 4.3.2.2, and also the amount of coconut husk, ginger bits, and pandan leaves in every output.Time Number of Batch/grams produced 1 hr 8 batches/200 grams 1 hr 8 batches/200 grams_| hr 8 batches/ 200 grams 1 hr 8 batches/200 grams Thr 8 batches/200 grams 1 hr 8 batches/ 200 grams Thr 8 batches/200 grams 8 batches/200 Table 4.3.2.1 Summation of Output Produced per hour Output of 2 Workers ‘Bateh(es) ‘No. of Teabag Grams (8 hr = 64 batches per (1 batch = 10 (1 teabag = ZS worker) teabag) grams) TDay_ 128 1,280 3.200 We fae i & 768 7,680 19,200 Months (24 3,072 30720 | —-76,800 baa) 300 | Year (288 36,864 368,640 aS 6, 921,600 ‘Table 43.2.2 Total no. of Output Produced with 2 Production Workers 1 Day ‘Weeks (6 days) Month (24 days) ‘Year (288 days) (128 batches) (768 batches) (3,072 batches) (36. 864 batches) ‘Coconut Husk 1,9208 11,5208 46080 8 552,960 g (156) Ginger Bits (0.78) 8968 5,376 8 21,504 258,048 padarileaves 34g 2,304 g 92168 110,592 g (034) r Total 32008 19,2008 76,8008 921,6008 ‘Table 4.3.2.3 Total Amount of Each Ingredients per Batch 54In summary, the overall manual and machines on a spec company per day is 1,280 pieces, (24 days), and 368,640 pieces in © operation to aid in manufixcturing, The capacity of the 7,680 pieces in a week (6 days), 30,720 pieces in amonth ? 4 Year (288 days), as shown in Table 4,3.2.2, ‘The usage of machines can be observed during mass productions, and the capacity depends on the demand onder by the customers, The number of outpuls produced is very reasonable as We ve : ave avo trained Workers. The company also identified and addressed the different constraints that oecur during the production process, After minimizing the constrain, the company also created an adjusted flowchart to make changes for future constrains which might occur along the way. The company may not be able to compute the efficiency of the machines because the production is mainly performed through manual process. So, the use of machines takes place only when the company needs to produce large quantities of products ina short period of time. On the other hand, after improving the constraint, the company is able to spend time on packaging procedures, which is very important as it protects and maintains the quality, flavors, and moistures of the products upon delivery 4.4 Plant/Facility Size and Production Schedule The Facility size of the rented building where manufacturing of the product will take place is based on the standard size of facility for manufacturing which ranges from 20'x40" to 75°x120°. In which the rented building has a size of 46°x53° that can accommodate all necessary facility areas for production and for the management. Figure 4.4.1 Facility Size Layout (46ft x S3ft) 35For the production schedule of the business, working hours will start at 8:00 AM. and ends at 5:00 P.M. with a one-hour lunch break for every employee every Monday to Saturday. The business will have its rest day during Sunday to follow the law provided by the government under the proclamation of the president, the Labor Code Article 91 states that the employces of the business have the rights to have a weekly rest day to maintain their physical and mental health, Each worker can produce 65 batches consisting 10 units per batch by the use of machines multiplied by 2 workers will have a total of 1,300 units a day. In a week, 1,300 units multiplied by 6 days is equal to 7,800 units while in a month, 7,800 units multiplied by 4 weeks is equal to 31,200 units. Furthermore, in a year there will be a total of 374,400 units of Coconut Husk tea. The production schedule of our proposed product depends on eleven different types of our production process. Speed, availability, and capability of our workers and machines to operate also contributes to our production schedule. Thus, the final schedule of our production is; Production Schedule Procedure Required Time Gathering Tmin Ist Cutting/Chunking mins Rinsing 2 mins Peeling Tmins Drying/Baking - 8 mins 2nd Cutting 2mins Toasting 5 mins = Quality Checking 2 mins Measuring 2 mins Filling 2mins 56Sealinj a 8 mins Total — 5 oe 30 mins Table 4.4.1 Production Schedule 4.5 Machinery and Equipment « Liquefied Petroleum Gas Liquefied Petroleum Gas (LPG) is a type of gas that is useful and efficient for cooking. This gas helps us to manufacture or cook our product in less time, helping us to save a lot of fuel cost « Gas Stove Gas stove allow us to roast and boil (for rinsing) our ingredients by controlling its heat, which can be turned high or low. «Mixing Bowl ry important in our production Mixing bowl is vet and mixed our because this utensil helps us to organized ingredients. 57. Tray is very us i Tray ry useful in our production proc: utensil is used for carrying hot ingredients ess because this for the next process, and preparing them « Digital Weighing Scale Digital weighing scale is used to measure the weight of our ingredients. Tt is also used to maintain the uniformity of weight of our final product especially when it comes to filling or packaging. e Kitchen Spatula Kitchen spatula is a flat, flexible blade used to handle, carry, and mix hot ingredients especially those ingredients undergoing a roasting process. e Knife Kitchen knife is used for cutting or peeling ingredients especially when the peeling/cutting machines is undergoing a maintenance. e Oven i « mportant equipment in our eof the most impo nent in Oven is oe to roast our ingredients, iti d i cess because it is Us neh tae and natural flavor of our product. which improves the texture a+ Industrial Grinder for Food Industrial grinder for food i food is bei i i process because this machine helps us ne cnon rotation i Ips us to disintegrate food that allow use to brew geen cus and better tea. ‘Ww much tastier and * Tea Bag Packing Machine _ Tea bag packing machine is a machine that will significantly improve the quality and productivity of our tea bag making process efficiently and effectively. © Peeling Machine Peeling machine is an industrial machine equipped with stiff, soft brush that allow us to peel ginger much easier and faster without having any damage. 59MACHINERY AND equipment | DESCRIPTION | Quantity | UNIT ition 7 cost Eiqutied Petroleum | LPG Grade Seca Likg 1 698.00 | P698.00 D Stove ouble Gas Bumer 1 P1,500.00 | 1,500.00 Mixing Bowl Stainless bowl 1 260,00 | 260.00 Non-stick, | Frying Pan Aluminum 1 870.00 | 870.00 | Tray Stainless Steel 1 546.77 546,77 Weighing Scale Digital 1 400.00 400.00 Kitchen Peeler Y-Peeler 1 P195.00 | 195.00 Kitchen Spatula Wooden 1 P190.00 | 190.00 Kaife Chef knife 1 350.00 | 350.00 Vegetable, Fruit, Stai and Leaf Washer es I 75,000.00 | 75,000.00 with Dryer Machine eae Stainless Steel, 7 oven lees 1 50,000.00 | 50,000.00 Stainless Steel, iiintrial Grinder Pleciic 1 28,584.09 | 28,584.09 Tea Packing Stainless Steel, ain ne 1 P25,677.23 | 25,677.23 Peeling Cleaning Stainless Steel, 1 P25,000.00 | 25,000.00 Machine Electric ” — Industrial Chiller Stainless Steel, 1 96,895.20 | 96,895.20 Machine Electric TOTAL P306,166.2 ‘Table 4.5.1 List of Machinery and Equipme nt with Pricing4.6 Plant Location besides the Social Security Syste site, According to the Revised asa low rise buldinglena | of commercial use or occupancy, characterized mainly ture for low intensity commercial /rade, service and business activities, €.g., one to three (1 to 3 " n stor ed use/occupancy buildings and the a ry shopping centers, small offices or mix: _,._ The manufacturing and producing site of Coconut Husk tea is a mixed-used type of building since it blends into a commercial use that is integrated physically and functionally along the provision of pedestrian connections that will be applied in city or suburbs with indication of zoning policy across the entire city. Below is the provided actual location map of our selected location for our proposed business. View larger map 9 Fh And Ga rity System perv? gored Figure 4.6.1 Plant Location 614.7 Plant Layout The facility 1, . efficient and effective ma of the business operation is carefully designed to support an the ground floor that represen er using the proposed product. This layout consists of “Presents different areas for processes. There is also an office for a eting, financi n eeavines of the coment Which help them to plan, direct, and ensure operational Layout”, where workfl Y as shown in Figure 4.7.1. This layout is based on “Process hers to perforan LOW is arranged around the production process. This design grouped workers to p rrorm similar activities, where ingredients are passed from one workstation to another until they become a final output. On the other hand, we may not able to include the machines in this layout because they are not available in the software. This section indicates the blueprint layout with its designated facilities along manufacturing and production. It also includes evacuation plan and the arrangement of the lighting system, as shown in figures below, that increased the visibility of workers to avoid eye fatigue or headache, and also to have a great chance of evacuating during emergency. LOADING! UNLOADING cee ENTRANCE! pers Figure 4.7.1 Blueprint of Plant LayoutFigure 4.7.3 Arrangement of LightingTable 4.7.1 Building am [ BOMDING AND DESCR IPTIO} ‘ACILITIES IN | FACILITIES >-————_| QUANTITY | unrr cosr| cost . 1$2em%9) inyl Fl cm | Visyt Flooring | 900 P60,00 | P54,000.00 Paint . Permacoat [ofoontig) foes | 4 Gallons 478,00 1,912.00 Permaca Paint (Beige) atlatex | 9Gallons | p478.00 4,302.00 Perm Paint (White) ‘acoatlatex | SGatlons | pa7s.00 | 2,390.00 Electric Fan Ceiling Fan 4 P1,075.00 | 4,300.00 Copper motor, anti- Exhaust Fan fused 2 P750.00 | 1,500.00 1x43 x65 1 6,800.00 | 6,800.00 Refrigerator Sa _ aoa Top Load 1 P1,600.00 | 1,600.00 Water Dispenser 5 Ibs 7 p9s0.00 | 6,650.00 Fire Extinguisher 16) Watt 18 16 Pi60.00 | 2,560.00 LED Tube oo E27, Flat Glass 6 P229.00 | 1,356.00 , Size 4 Pin Light Cover, Size Office Light 10 p492.00 | 4,920.00 LED Strip Light P 92,290.00 TOTAL 4 Facilities Materials and Pricing[OFFICE | DE. PLIES Ss sur CRIPTION QUANTITY | UNIT COST ws Desktop Jet Tower Desktop = 1 4,699.00 | P4,699.00 inter Business Taj a Printer 1 P3,890.00 | 3,890.00 Ballpen Rollerball Pen 1 box 50.00 50.00 [pencil _____—_|_Charcoat Penct 1 box 90.00 90.00 85 inches x 1 Bond Paper inches Trim P150.00 150.00 i All-purpose Scissors scissors 2 33.00 66.00 Notebook Office notebook 5 PLs.00 75.00 Records i jlumnar Book income oo ee and expenses 3 32.00 96.00 Stapler Desktop Stapler 2 44.00 88.00 Tape Office Tape 4 P11.00 44.00 Office Table Stainless 1 P2,189.00 | 2,189.00 Office Chair Executive Chair 2 P2,177.00 | 4,354.00 Solid Wood, 36x78 i ranuon | 400000 inches long Long Table Chai Solid Wood 5 630.00 3,150.00 hair Lobby Desk Solid Wood 1 20,000.00 | 20,000.00 esk 7 Stainless, Vertical 1 7,500.00 | 7,500.00 Filing Drawer File 50,441 TOTAL Supplies for the Plant Table 4.7.2 Other needed Office4,8 Structure Figure 4.8.2 Actual Location of the Building Structure ommercial building and location that we will The above figures show the actual c eration. This building was selected Boing to rent to support our proposed business op 68pecause it has alot of space ; people, equipment, and machina Bt need to pertomn and ; cs, rm an tion, because it tell US What We can fp ene AYOULIS Very in tanker aaea saperation commercial building is tocateq sti the working ony our business operation vainsula State Univers Near the Soein Space, In terms of location, Pe tsity (BPSU) I Security System (SSS) and in Bataan, i a ) that wi looking for 8 good and better types of tea, ™/Il help people to save their time and money This building plays an j expose our product and ‘vides ett tok building together with its loca to reach our stores, especial} effort. n the distribution 1 Our operation because it will help us to tion allow us 2 OU Sustomers. Tn addition to this, this ly to thos Promote the product and give people a chance S* People who shop to get ideas, with less time and 4,9 Labor Requirements This section descri a also specify the ee {he various jobs that will be needed in production which will sodicsibd wodkers was! kes to be employed. The proposed business has two Brot ‘gned to manufacture the produet, There will also be training and seminars for the workers, _ Training would be about skills training, technical or technology training, safety training, and quality training. In which there would be an allotted Php20,000.00 for the said training. It also includes seminars about health and safety, risk prevention; measures on what to do if there is an accident. Proper wearing of PPE (gloves, hair net, face-shicld, “lab” gown) for food security, what are the do’s and don’ts inside the manufacturing site. This training and seminars will truly help workers acquire new knowledge and develop new skills that they can utilize in their job. Personnel Number | Basic Monthly Pay | Total Labor Cost SarectLabox 2 rp 19,738.00 | P 21,476.00 Production Worker Table 4.9.1 Labor Requirements Costing4.10 Utilities In this part are th . i Con; " like heat, Tight, power, con Pt of basic evi business to Pun smoothly. Elen neitO™ and t, city the water consumption, and Cony, c Of the operations of the business- that isa necessity in order for the Penelco, Balanga Water District for Met connection, Ae and Water Provided by "Be for the inte per month and fae Con. Mo. Cost_| Annual Cost 56 kwh 15,857.92 _| P_ 190,295.04 1,699 20,388.00 407.68 cubic meter 407.68 4,892.16 P_ 215,575.20 Table 4.10.1 Utilities Costing 4,11 Waste Disposal The waste disposal Protocols of the proposed business will observe zero waste management and recycle waste such as peeled ginger skin and excess coconut husk parts will be donated to gardens and local farm supplier. 4,12 Total Production Costs The projected total production costs of the company are based on the projected cost incur from the presented expenses of the company. Computation of Unit Production Cost Add: Direct Materials F > Direct Labor on Manufacturing Overhead . nm ean Unit Production Cost Computation of Direct Materials . 5.00 Add: Coconut Husk 1.95 Ginger a Pandan Leaves a0Direct Materials Cost per Box Fr 895 Computation of Direct Labor Anasal Labor Requirements @Largeiay Divide: Annual Production (368,640/19) 287,712.00 Direct Labor Cost per Box > 6.99 Computation of Factory Overhead ‘Add: Sachet (12.5*36,864) r 460,800.00 Brown Paper (1.67436,864) 61,562.88. Box (5*36,864) 184,320.00 fi Bas (Delivery Purposes) (13*36,864) /60units per box 7,987.20 5 % ‘Annual Contribution of Production Workers a Tr la 27,310.08 Depreciation 36,580.59 Rent 30,000.00 Utilities (407.6812) + (15,857.9212) 195,187.20 | Total Factory Overhead cas P —1,003,747.95 Divide: Annual Production Factory Overhead Cost per Box. Table 4.12.1 Cost of ProductionRaw materials, 2023 beginning . 4 2024 2025 2026 780. 40 s04005 5.20168 5.55687 ‘Add: Purchases, 1,195,100. 4 .00 Total materials available 1.255,232.40 _1,317,880.80 _1,383,925,80 _1,452,990.00 for use | 1,195, 100.0 Less: Raw materials, ° 1,260,012.80 1,322,920.85 1,349,207.48 | 1,458,546.87 end 4,780.40 $040.05 5291.68 5.55687 5,834.19 Direct Materials 1,190,319, 160 1,254,972.75 1,317,629.17 1,383,660.61 _1,452,712.68 Direct Labor 514,07: 5.56 524,357.07 534,844.21 $45,541.10 556,451.92 Factory Overhead 5E.202.68 _167201.13 17629147 __ 19691494 _196.415.67_| Manufacturing Cost 1 sad: Work in process, 863,097.84 1,946,530.95 2,028,764.85 2,115,216.65 2,205,580.28 beginning “ - . ee Total put to process 1,863,097.84 — 1,946,530.95 2,028,764.85 2,115,216.65 2,205,580.28 Less: Work in process, end - - : = < Cost of goods ‘manufactured 1,863,097.84 1,946,530.95 2,028,764.85 2,115,216.65 2,205,580.28 ‘Add: Finished goods, beginning - 931.55 BB 1,014.87 1,058.12 Total goods available for sale 1,863,097.84 1,947,462.50 2,029,738.58 2,116,231.52 2,206,638.39 Ler insted 900 sass 973.33 101487 __1,058.12__1,103.32 Cost of goods sold 1,862,166.29__1,946,488.7 2,028,723.71__2,115,173.40__2,205,535.07 Table 4.12.2 Cost of Production and Sold.