CAPSTONE2022

ZIP-UP HOSPITAL GOWN
A Project Design
Presented to the
Industrial Engineering Department
Cebu Technological University
Argao, Campus
Argao, Cebu
ALVIOLA, ALMA JOY
CENTINO, ALLAN J.
PELOMINO, CHARISSE JEAN D.
TANGPOS, PETER JADE M.
2022
I
APPROVAL SHEET
This Capstone Project entitled “ZIP UP HOSPITAL GOWN” prepared
and submitted by Charisse Jean Pelomino, Allan Centino, Alma Joy Alviola and
Peter Jade Tangpos, in partial fulfillment of the requirements for the degree
Bachelor of Science in Industrial Engineering has been examined and approved
for oral examination.
THESIS ADVISORY COMMITTEE
ENGR. VEVENCIO ALONSO JR.

BSIE, Department Chairperson
ENGR.LIEZ GONZALES
Course Professor Technical Adviser
APPROVED by the Committee on Oral Examination with a grade of:
THE PANEL OF EXAMINER
ENGR. MARY ELLEN C. CAMARILLO

Chairman
ENGR. JECEL T. CARA-AT ENGR. RHEA P. KINTANAR

Member Member
ACCEPTED AND APPPROVED in partial fulfillment of the requirements fort the

degree, BACHELOR OF SCIENCE AND INDUSTRIAL ENGINEERING.
Date of Oral Examination: June 18, 2022
HELMERM. BAṄADOS, Ph.D.

Dean, College of Engineering
II
ABSTRACT
When patients suffered stress and physical constraints during hospitalization and
the recovery phase, positive emotions about clothing were effective in improving their
healing and self-esteem (Khorshid et al., 2019). Mostly of the hospital gowns are opened
at the back of the gown but this will provide discomfort and difficulty of the patient when
changing clothes especially in intravenous injection. People admitted to public hospital
has bigger percentage of people wearing casual dress like t -shirts. To address this
problem, the researchers innovated a product, Zip-up Hospital Gown, that lessens the
discomfort of the patient when changing clothing in admission and confinement in a
hospital. A gown that has an accessible in order for the intravenous injected patients just
slid his or her head when changing clothes.
The target market of the business is the Isidro C Kintanar Memorial Hospital,
located at Bogo, Argao, Cebu. The forecasted demand for the next year of patient is
1,169 patients. The Zip up Hospital Gown takes up to 56.31 minutes from raw materials
to finished product. The required number of production worker in order to meet the
demand per year is 4 which will work for 2 months or 48 days per year depending on the
seasonality of demands.
III
ACKNOWLEDGEMENT
Our deepest gratitude is extended to all those who have help,
supported, and contributed a lot for the success of this study.
Our sincere thanks to our instructor Engineer Liez C. Cabrera-
Gonzales in this subject IE-PC 4117 IE Capstone Project for her
continuous inspiration and encouragement for the researchers’ personal
growth and development. She guides us in making this study successful and
inspires us to make this research possible.
To our Family and friends, who gives us support in terms of
financial needs and for always being there to encourage us whenever we
are about to lose hope and celebrate with us with pride for every success we
accomplished.
To ourselves, who believe in ourselves in order to accomplish the study.
Above all, To our Almighty God, for his infinite love, guidance,
and blessings all throughout this journey. He gives us strength to finish and
gives us intelligence to make this research successful and enlightened our
way in times of hardships and discouragement.

IV
DEDICATION
The accomplishments and success in this subject wouldn’t be
possible without those people who give us motivation to strive hard and
finish this research. This research study is sincerely dedicated to our
beloved and active instructor in this subject IE-PC4117 IE Capstone Project
in the fulfillment of the subject learnings and application of deep
knowledge in the field research and study.
The researchers also dedicate this study to the patients at any
hospital who are still recovering and also to their families.
The researchers also dedicate this study to all the instructors,
faculties and staff of Cebu Technological University Argao Campus
(Industrial Engineering Department) for they contributed in the outcomes
of the study.
This research is also for our parents, friends, and classmates of BSIE-4B
who also made this research possible, our source of inspiration, motivation
and our support system to accomplish this ever challenging yet full of
learnings and knowledgeable subject.

V
TABLE OF CONTENTS
APPROVAL SHEET i
ABSTRACT ii
ACKNOWLEDGEMENT iii
DEDICATION iv
TABLE OF CONTENTS v
LIST OF FIGURES ix
LIST OF TABLES x
INTRODUCTION
CHAPTER I: THE PRODUCT 1
1.1 Features of the Product 1
1.1.1 Velcro Tape 1
1.1.2 Cotton Fabric 2
1.1.3 Plain Colored 2
1.2 Physical Characteristics of the Product 2
1.3 Uses of the Product 2
1.4 Pictorial View of the Product 3
1.4.1 Exploded Drawing 3
1.4.2 Orthographic Drawing 4
1.5 Approximate Weight of the Product 5

1.7 Source of Raw Materials 5
CHAPTER II: PROPOSED OUTPUT PER MONTH 6
2.1 Method of Production 6
2.1.1 Target Output 7
2.2 Assembly Process Chart 8
2.2.1 Product Parts 9
2.3 Network Diagram- Major Activities 13
2.4 Operation Time 13
2.5 Cycle Time 13
2.6 Manufacturing Lead Time 14
2.7 Number of Production Line 15
2.8 Efficiency of the Line 15
2.9 Idle Time of the Line 16
2.10 Design of the Production Line 17
2.11 Number of Workers 17
2.11.1 Recommended Qualifications of Workers 18
2.12 Rate of Workers 20
2.12.1 Methods of Rating the Efficiency of the Worker 24
2.13 Equipment and Tools Needed 25
2.14 Principles of Motion Economy 26
2.14.1 Therbligs 27
2.15 Layout of Production Area 34
VI
CHAPTER III: MATERIAL REQUIREMENT 36

3.1 Product Structure Tree 36
3.2 Specification of Materials 37
3.3 Bill of Materials (BOM) 38
CHAPTER IV: INVENTORY CONTROL 39
4.1 Economic Order Quantity (EOQ) 39
4.2 Safety Stock 42
4.3 Re-ordering Point 44
4.4 Number of Orders per Year 45
4.5 Length of Order Cycle 47
CHAPTER V: UNIT COST AND UNIT PRICE 48
5.1 Cost of Materials 48
5.1.1 Direct Materials Cost 48
5.1.2 Indirect Materials Cost 49
5.2 Cost of Labor 49
5.2.1 Direct Labor Cost 49
5.2.2 Indirect Labor Cost 50
5.3 Overhead Cost 51
5.3.1 Power/ Energy Cost 52
5.3.2 Depreciation Cost 55
5.4 Production Cost 58
5.5 Unit Price 59
5.6 Discussion of the Value of Money 60
CHAPTER VI: INCENTIVE POLICY 61
6.1 Salaries and Wages 61
6. 2 Performance Based Incentives 61
6.3 Employee Recognition 62
6.4 Overtime Pay 62
6.5 Overtime Pay Rates 63
6. 6 Holiday Pay 63
6.7 Regular Holidays 63
6.8 Premium Pay 65
6.9 Special Non-Working Holidays 65
6.10 Special Worked Days 66
6.11 Premium Pay Rates 66
6.12 13th Month Pay 67
6.13.1 Maternity Leave (as amended by RA 11210) 68
6.13.2 Paternity Leave (RA 8187) 69
6.13.2 Solo Parent Leave 70
6.14 How to obtain Solo Parent ID 71
6.15 Sick Leave 71
6.16 Vacation Leave 72
6.17 PAG-IBIG Contribution 72
6.18 Phil Health Benefits (RA 7875, As Amended by RA 9241) 72
VII
6.18.1 National Health Insurance Program 72

6.19 Retirement Pay (Article 287. As amended by RA 7641) 74
6.20 Benefits under the Employees’ Compensation Program (PD 626) 74
6.21 One-half (1/2) Month Pay per Year of Service 76
6.22 Social Security Benefit (RA 1161, as amended by RA 8282) 77
6.22.1 The Social Security Program 77
6.23 Separation Pay 79
CHAPTER VII:QUALITY CONTROL 80
7.1 Attributes of the Product Requiring Control 81
7.2 Variables of the Product Requiring Control 83
7.3 Suggested Practical methods of Controlling Attributes 83
7.4 Suggested Practical methods of Controlling Variables 84
7.5 Inspection Points along the Line 84
7.6 Statistical Method of Controlling Quality 85
7.7 Suggested Tool to Control Attributes 86
7.8 Suggested Tool to Control Variables 86
7.9 Suggested Policy Regarding Rework 86
CHAPTER VIII MATERIAL HANDLING 90
8.1 Principles of Material Handling 90
8.2 Measure Distance in Moving Materials by MHE 93
8.3 Recommended Material Handling Equipment 94
CHAPTER IX: MAINTENANCE FACILITIES 95
9.1 Maintenance of Production Lines 96
9.1.1 Preventive Maintenance 96
9.1.2 Corrective Maintenance 99
9.1.3 Maintenance for Material Handling Equipment 100
9.1.4 Total Preventive Maintenance Checklist 101
9.2 Maintenance for Non-Production Facilities 102
9.2.1 Building 102
9.2.3 Electrical System 104
9.3 Personnel In-Charge of Maintenance Work 106
CHAPTER X SAFETY AND HEALTH 109
10.1 Measures against Occurrences of Accidents in the Plant 109
10.1.1 Electrical Safety 110
10.1.2 Machine Safety 111
10.1.3 Tools Safety 111
10.2 Personal Protective Equipment 112
10.3 Recommended Policies Regarding Health of Worker 115
10.4 Medical and Dental Services 115
CHAPTER XI: PLANT LAYOUT 117
11.1 Space Requirement 117
11.2 Non-Production Functional Area 118
11.3 Space Relationship Diagram 119
11.4 Space Allocation 114
VIII
11.4.1 Area Allocation for Non- Production Functional Area 126

11.4.2 Area Allocation for Production Functional Area 127
11.5 Total Area of the Sections of the Plant 129
11.6 Final Layout 130
11.7 Plant Location 131
11.8 Percentage of Lot Occupancy 132
CHAPTER XII: COST OF DEVELOPMENT 133
12.1 Cost of Lease 133
12.2 Cost of Structure 133
12.3 Cost of Open Space 133
12.4 Cost of Tools and Equipment 133
12.4.1 Workstation tools and Equipment 134
12.4.2 Administrative Area 135
12.4.3 Raw Materials and Finished Product Storage 136
12.4.4 Store / Display Area 136
12.4.5 Locker Area 137
12.4.6 Miscellaneous Supplies 137
12.5 Total Cost of Development 138
CHAPTER XIII ORGANIZATIONAL STRUCTURE OF THE PLANT 139
13.1 Organizational Structure 139
13.2 Functions of Organizational Positions 140
13.2.1 General Manager 140
13.2.2 Shopkeeper 140
13.2.3 Tailors or Seamstress 140
CHAPTER XIV: CONSCLUSION AND RECOMMENDATION 141
14.1 Conclusion 141
14.2 Recommendation 141
APPENDICES 146
CURRICULUMN VITAE 149
LIST OF FIGURES
Figure 1 Assembly Drawing of the Product 3
Figure 2 Exploded Drawing of the Product 3
Figure 3 Back View of the Product 4
IX
Figure 4 Front View 4

Figure 5 Side View 5
Figure 6 Process Flow 8
Figure 7. Network Diagram ofZip-upHospital Gown 13
Figure 8 Lay-out of the Production Line 17
Figure 9 Lay-out of the Production Area 35
Figure 10 Product Tree 37
Figure 11 Inspection Process Flow Chart 85
Figure 12 Qualification of Personnel in Charge of Quality Control 87
Figure 13 Transport Equipment 94
Figure 14 Storage of Raw Materials and Finished Product 94
Figure15 Closeness Relationships in Auxiliary Area 121
Figure 16 Dimensionless Block Diagram for Auxiliary Area 122
Figure 17 Activity Relationships in Administrative Area 122
Figure 18 Dimensionless Block Diagram for Administrative Area 123
Figure 19 Activity Relationships in Production Area 124
Figure 20 Dimensionless Block Diagram for Production Area 125
Figure 21 Plant Layout 130
Figure 22 Plant Location 131
Figure 23 Organizational Chart 140
LIST OF TABLES
Table 1.1 Sources of the Materials 5
Table 2.1 Description of the Major Process Operations 9
Table 2.2 Process Symbol 10
Table 2.3 Precedence table 11
X
Table 2.4 Manufacturing Lead Time 15

Table 2. 5 Recommended Qualification of Workers 18
Table 2.6 The Minimum Wage Rates in Central Visayas 20
Table 2.7 Salary of Workers According to Positions 22
Table 2.8 Machines, Tools and Equipment Needed 25
Table 2.9 Therbligs Symbols 27
Table 2.10 Therbligs of the Processes 28
Table 3.1 Specification of Materials 37
Table 3.2 Bill of Materials 38
Table 4.1 Economic Order Quantity 41
Table 4.2 Safety Stock 43
Table 4.3 Re-ordering Point 44
Table 4.4 Number of Orders per Year 46
Table 4.5 Length of Order Cycle 47
Table 5.1 Direct Materials Cost 48
Table 5.2 Indirect Material Cost 49
Table 5.3 Direct Labor Cost 50
Table 5.4 Indirect Labor Cost 51
Table 5.5 Energy / Power Costs 52
Table 5.6 Utilities Expense 54
Table 5.7 Depreciation Cost for Tools, Machineries and Equipment 56
Table 5.8 Furniture and Fixtures 57
Table 5.9 Office Tools and Equipment 58
Table 5.11 Summary of Costs 58
Table 7.1 Guidelines of Attributes of Product 81
Table 8.1 Distance in Moving Materials 93
Table 9.1 Maintenance of Tools and Equipment 97
Table 9.2 Maintenance Card 98
Table 9.3 Corrective Maintenance Card 99
10
Table 9.5 Maintenance for Material Handling Equipment 0
10
Table 9.6 Total Preventive Maintenance Checklist 1
10
Table 9.8 Building Maintenance Card 3
XI
10
Table 9.9 Electrical System Maintenance Card 5
10
Table 9.10 Summary of Schedules for Preventive Maintenance 7
11
Table 10.1 Personal Protective Equipment 2
12
Table 11.1 Closeness Codes 0
12
Table 11.2 Degree of Closeness for Auxiliary Area 1
12
Table 11.3 Degree of Closeness in Administrative Area 3
12
Table 11.4 Degree of Closeness in Production Area 4
12
Table 11.5 Area Allocation for Display Area 6
12
Table 11.6 Area Allocation for Administrative Office 6
12
Table 11.7 Area Allocation for Production Area 7
12
Table 11.8 Area Allocation for Storage Room (R.M.) 8
12
Table 11.9 Area Allocation for Storage Room (F.G.) 8
12
Table 11.10 Summary of Space Allocation Per Area 9
13
Table 12.1 Cost of Machine, Tools and Equipment 4
13
Table 12.2 Cost of Office Tools and Equipment 5
13
Table 12.3 Cost of Raw materials and Finished Product Storage 6
13
Table 12.4 Cost of Furnitures and Fixtures in Store / Display Area 6
Table 12.5 Cost of Furniture in Locker Area 13
XII
7
13
Table 12.6 Cost of Office Supplies 7
IE –PC 4117 IE CAPSTONE PROJECT 1
Chapter I
THE PRODUCT
Hospital gowns are the sanitary clothing worn by patients. It is designed to be
simple, easy to launder, and cheap with high durability to longer its span of usage. There
are variety of hospital gowns available in the market but Zip Up Hospital Gown is unique
and is not common to use.
The product is designed to help the wearer to be comfortable while changing their
clothes without worrying for their health condition. The existing problem in changing
clothes of the patients led the developer of the product to come up with the idea of having
hospital gown as a solution for that problem. The feature of the product is simple yet can
eradicate discomfort in changing IVF and it provides faster change of clothing that would
attract its potential customers.
1.1 Features of the Product
Zip Up Hospital Gown offers the following features:
Velcro Tape
This product has Velcro tape on each side of the shirt that makes it easier to
change clothes without compromising the present health condition of the patient that
allows two parts of the garment to come completely apart. The Velcro tape makes the
gown collapsible from left and right side

Cotton Fabric
It uses cotton fabric which provides the wearer with comfort and is a
hypoallergenic, weather-proof, has the ability to control moisture, and is a durable type of
fabric.
Plain Colored
It utilizes plain colored design which is very pleasant to the eyes and gives a cool
and calm feeling.
1.2 Physical Characteristic of the Product
The Zip Up Hospital Gown is an innovated gown that has a length of 40 inches,
30 inches width, 10 inches length of the sleeve, 29 inches bust size,7 inches neck
circumference, 1 meter length and ½ inches width of tie which is made of cotton fabric. It
has Velcro tapes on each side of the shirt that makes iteasier to change clothes. The
design is just plain color so that it will not be irritating to the eyes of the beholder.
1.3 Uses of the Product
The Zip Up Hospital Gown is designed to support patients and their caregivers to
experience a convenient andcomfortable way in changing the patient’s clothes without
the need of removing the attachments from the patient’s body like the dextrose. Most
patients find it hard to change their clothes every time they want to which leads them to
not change their clothes at all until there is a nurse that could assist them in handling the
dextrose connected to the patient’s body. This product will provide comfort.
1.4 Pictorial view of the Product
Figure 1 Assembly Drawing of the Product
1.4.1 Exploded Drawing
Figure 2 Exploded Drawing of the Product

1.4.2 Orthographic Drawing
Orthographic Projection is a way of drawing a 3D object from different
directions. It normally has three accurate views of a product, a front view, a side view,
and top view.
The proponents also produce orthographic drawings so that prototypes can be
manufactured, and then tested ensuring the manufacturer can make the product to the
precise size and requirements. This leads to improvements being made to the product.
Below are the necessary views required in manufacturing the product. A parts list
which includes all the information to make each part of the product.
Figure 3 Back View of the Product
Figure 4 Front View

Figure 5 Side View
1.5 Approximate Weight of the Product
Cotton fabric makes up to the most part of the product. The approximate weight
of the product is 500 grams.
1.7 Sources of Raw Materials The table below shows the sources of materials.
Table 1.1
Sources of the Materials
Materials Name of Supplier Location Supply Capacity
Cotton Fabric Wholesale retail TondoMetro Byorder
(Shopee) Manila
Velcro Tape Clay_mates29 Las Pinas City, Byorder
Metro Manila
Thread Threadsand F. RamosSt. Cebu Byorder
Needles Clothing city

Paper Bag Local supermarket ArgaoCebu Byorder
Chapter II
PROPOSED OUTPUT PER MONTH
Every company has its own method and strategy for producing its goods. This
procedure is important for the product's long-term viability as well as the process'
efficiency and efficacy. This will assist the company in achieving its objectives.
This chapter will discuss the aspects to be considered in effectively producing the
product. This consists the method of production, assembly process chart and the process
flow in producing the product. The efficiency of the production is also discussed in this
chapter. This is supported by aspects that greatly affects the production- operation time,
cycle time, manufacturing lead time, number of production lines, efficiency of the line,
idle time of the line, design of the production line as well as the number of workers
needed in the production.
Manpower must be given importance for they are the one who made the product
possible. This chapter will discuss the job description and specification according to its
designated position.
2.1 Method of Production
In order to produce the intended product, the Zippy tend will use
batch type production method. Since Zippy tend sets out an ideal number of
outputs daily in order to achieve the target demand of the year creating a smaller
group of products which can be considered as batches.

2.1.1 Target Output
The company is able produce on daily basis in 2-month production time ideal
output of 25 units. The production line capacity per day is 32 units of Zip-up Hospital
Gown.
annual demand
ideal daily output=
working days
1169units
ideal daily output=
48 days
ideal daily output=24.35∨25 units per day
There is a total of 7.5 hours per day in a normal operation time of production
excluding 15 minutes break time for the workers during morning and 15 minutes break in
the afternoon. A total of to 30 minutes break in a day, the actual operation time per day is
7.5 hours or equivalent to 450 minutes.
Solution:
The calculation below is for the production capacity.
2.2 Assembly Process Chart
The assembly process chart or operation chart is a graphical and symbolic
representation of the manufacturing operations used to produce a product. It shows how
the raw materials transform into finished product. It also serves as a tool to examine the
process in detail to identify areas of possible improvements.
Figure 6 Process Flow

2.2.1 Product Parts
Cotton Fabric. The main material in the Zip up hospital gown which is also commonly
used in hospital gowns.
Velcro Tape: The Velcro tape is a hook-and-loop fastener, is used to fasten two items or
sides together. It's usually sold in a roll of tape form but can also be found in strips.
Usually, one side goes on a wall if it's an adhesive type.
Thread: A long, thin strand of cotton, nylon, or other fibers used in sewing or weaving.
Table 2.1
Description of the Major Process Operations
OPERATION DESCRIPTION
Material Preparation Preparing the main materials early in the

worktime. Removing dust or dirt that
might be in the fabric.
Measuring and pattern making Process of tracing the precut pattern for the
gown which will soon be cut.
Cutting Cutting the fabric into pieces to be
assembled pr sewed.
Assembling and Stitching/ Sewing Using the high-speed sewing machine,
materials that are cut will be put together
by thread.
Checking, Storing and Ironing Checking for defects and storing it for
delivery. Ironing will be optional.
Table 2.2
Process Symbol
SYMBOL NAME PURPOSE
OPERATION Add value
STORAGE Warehouse
TRANSPORT Move distance
DELAY Temporary delay or hold
INSPECTION Check for defects

Table 2.3
Precedence table
OVERALL TASK TIME

2.3 Network Diagram- Major Activities
Figure 7. Network Diagram ofZip-upHospital Gown
The time study shows that, Process A, is for the Material preparations, which
allotted into 1.33 minutes, then the process B is the measuring and pattern making which
is 3.60 minutes. Process C, is the cutting the fabric into parts in 2.57 minutes. Then the
stitching and sewing is depicted above as process D which has the biggest allotted time of
48.3 minutes and lastly, Process E which is quality checking and storing for delivery in
0.48 minutes elapsed.
2.4 Operation Time
Operating time is calculated through technical norms. It is a period during
ensure the rapid growth of labor productivity and to make product under normal
operating time.
2.5 Cycle Time
It is the total time from start to its final process. It includes process time during
which a unit is acted upon to bring it closer to an output, and delay time during which a
unit of work is spent waiting to take the next action.

Theformulabelowisusedtoobtainthe cycletime
production time per day

Cycle time =
required output per day (¿ units)
450 mins x 60 sec
Cycle time =
25 units
27 , 000
¿
25
Cycle time =1,080 secs or 18 mins
2.6 Manufacturing Lead Time
It is the time period between the placement of an order and the shipment of the
completed order to the customer. It includes the order preparation, queue time, set- up
time, run time, inspection time and put- away time. A short manufacturing lead time is a
competitive advantage. Many customers want the delivery of their products as soon as
possible following the placement of the order.
Set-up Time (ST) A period for preparing device, machines and process for it to be ready
to function or accept a job.
Operation Time (OT) The standard time to produce one unit or referred as workstation
time.
Queue Time (QT) It refers to the time a processed item or part waits before it is move to
the next workstation.
Move time (MT) It is the time when part of an item is transferred from one workstation
to the other workstation.

Inspection Time (IT) It is time for quality checking which involves examination,
measurement, testing and comparison of the materials in items.
FORMULA:
Manufacturing Lead Time =Σ(ST+OT+QT+MT+IT)
Table 2.4
Manufacturing Lead Time
Variable of the Lead time Lead Time (minutes)
Operation Time 54.5
Set up time 1.33
Move Time 0
Queue Time 0
Inspection Time 0.48
Total Time 56.31
2.7 Number of Production Line
The number of production line or the workstations is calculated to make the ideal
output of 25 units per day and 150 units per week. This can be obtained through the
following.
overall task time

number of workstations=
cycle time
56.31mins
number of workstations=
18 mins
number of workers/ workstations= 3.13 or 4 workers/ stations
2.8 Efficiency of the Line

The efficiency of the line can be computed by dividing the operation time by the number
of workstation and cycle time.
overall task time

efficiency =
actual no . of workstation x cycletime
56.31
efficiency =
4 x 18
Efficiency= 0.78 or 78 %
2.9 Idle Time of the Line
Idle time is defined as unproductive time that occurs when work is halted for any
reason or when operation time is not fully utilized. The idle time of the line can be
computed using the formula below.
idle time=100 %−efficiency percentage
idle time=100 %−78 %
idle time=22 %
Therefore, an efficiency of 78 percent indicates an idle time of 22 percent across
the entire line.

2.10 Design of the Production Line
Figure 8 Lay-out of the Production Line
2.11 Number of Workers
Workers has significant part in the business since they give the necessary
personnel. It’s critical to hire the right people with the right skills and abilities for the job
needed by the business.

overall task time

Number of workers=
Cycle time
56.31minutes
=
18 minutes
= 3.13 or 4 production workers per station
2.11.1 Recommended Qualification of Workers

Table 2. 5
Recommended Qualification of Workers
POSITION JOB DESCRIPTION JOB
QUALIFICATION
GeneralManag -In charge of monitoring a business -Must have a degree
er segment’s day-to-day operations as well relating to Business
as other business activities like supply Management,
distribution. Master’s in Business
-They set operational policies, create Administration and
budgets, and manage personnel. Industrial
-Guarantees that all of their employees Engineering
complete their jobs on time. -Has a good
-Could be the owner. knowledge of
- Hiring appropriate skills for the different business
company functions and
-oversee the quality of the product operations.
-Knows how to
communicate well
- 25 years old and
above
-Male or female
-Loyal
Shopkeeper -Ensures that the store is kept clean and -20 and above years
organized. of age
-Keeps a record of sales and restocks the -Male or female
store accordingly. -At least High
-Mediate any confrontation between staffs School graduate
and clients. -Must be organized,
able to clean the
-Keep the shop open for orders and other
workplace, well-
possible transactions for the whole year
presented, and
-Notify the general manager for orders punctual
and purchases -Prior experience in
-Entertain people at any kind interested in retail
the product -Can use MS word
and excel
-Know how to use
cellphone and
telephone
-Hardworking
-Loyal
Tailors -Alters or repair, construct, and labels

or customers’ garments -MaleorFemale
Seamstre -At least20yearsold
-
ss -At
Cleanworkarea,machinesandequipmentaft
(Skilledworker leasthighschoolgradu
eruse.
s) ate
-Musthaveexperience
in tailoring or
dressmaking
-Hardworking
-Loyal
2.12 Rate of Workers

Table 2.6
The Minimum Wage Rates in Central Visayas
AGRICULTURE & NON-AGRICULTURE WITH

NON-AGRICULTURE
LESS THAN 10 WORKERS
GEOGRAPHICAL
AREA NEW NEW
PER WAGE PER WAGE
MINIMUM MINIMUM
WOVII-22 INCREASE WOVII-22 INCREASE
WAGE WAGE
CLASS A
Cities of Carcar, Cebu,

Danao, Lapulapu,
Mandaue, Naga, Talisay
& Municipalities of ₱404.00 ₱31.00 ₱435.00 ₱394.00 ₱31.00 ₱425.00
Compostela,
Consolacion, Cordova,
Liloan, Minglanilla, San
Fernando or Expanded
Metro Cebu
CLASS B ₱366.00 ₱31.00 ₱397.00 ₱361.00 ₱31.00 ₱392.00

Other Cities Not
Covered Under Class A
– Bais, Bayawan, Bogo,
Canlaon, Dumaguete,
Guihulngan, Tagbilaran,
Tanjay, Toledo
CLASS C
Other Municipalities Not
₱356.00 ₱31.00 ₱387.00 ₱351.00 ₱31.00 ₱382.00
Covered Under Class A
and Class B

a/ Covers the cities of Carcar, Cebu, Danao, Lapulapu, Mandaue, Naga, Talisay and Municipalities of Compostela, Consolacion,
Cordova, Liloan, Minglanilla, San Fernando, or Expanded Metro Cebu, Toledo, Bogo, and the rest of Municipalities in Cebu
Province, Tagbilaran City and all municipalities in Bohol Province & Negros Oriental Province, Municipalities in Siquijor Province &
Municipalities in Bantayan and Camotes.
b/ Grants the following:
 ₱31 per day basic wage increase for workers in Non-Agriculture, Agriculture, and Non-Agriculture with less than ten (10)
workers.

The table above shows the minimum wages in different Geographical Areas.
Based on the Wage Order No. ROVII “Providing for Increase in the Minimum Wage
Rates in Central Visayas” mandated by Regional Tripartite Wages and Productivity
Board VII.
Table 2.7
Salary of Workers According to Positions
Position Head Count Daily wage (Php) Monthly wage
(Php)
General Manager 1 500 12, 000
Shopkeeper 1 425 10,200
Tailors or 4 425 10, 200

Seamstress
There are also set of rules of payment for regular, special holidays and non-
working days that shall be applied and followed. The following are the set of Holidays
mandated by the Department of Labor and Employment (DOLE).
Regular Holidays:
New Year‟s Day Movable Date

Maundy Thursday April 9
Good Friday May 1
Araw ng Kagitingan Independence Day
Labor Day National Heroes Day
January 1 Bonifacio Day
Movable Date Christmas Day
Rizal Day November 30

June 12 December 25
Last Monday of August December 30
Special Holiday:
Chinese New Year Movable Date
EDSA People Power Revolution February 25
Black Saturday Movable Day
Ninoy Aquino Day August 21
All Saints Day November 1
a. If the employees did not work, he/ she shall be paid 100% of his or her salary for that
day.
b. For work done during the regular holiday, the employee shall be paid 200% of his or
her regular salary for that day for the first eight hours.
c. If the employee works for more than eight hours (overtime work), he or she shall be
paid an additional 30% of his or her hourly rate on the said day.
d. For work done during the regular holiday that also falls on his or her rest day, he or she
shall be paid an additional 30% of his or her daily rate of 200%.
e. If the employee works more than eight hours (overtime work) during a regular holiday
that also falls on his or her rest day, he or she shall be paid an additional 30% of his or
her hourly rate on the said day.

Special (Non- working) Holidays
a. If there are employees did not work, the “no work, no pay” principle shall apply unless
there is a favorable company policy practice or collective bargaining agreement.
b. For work done during the special day, he or she shall be paid on additional 30% of his
or her daily rate on the first eight hours of work.
c. For work done in excess of eight hours (overtime work), he or she shall be paid an
additional 30% of his or her hourly rate on the said day.
d. For work done during a special day that also falls on his or her rest day, he or she shall
be paid an additional 50% of his or her daily rate on the first eight hours of work.
e. For work done in excess of eight hours (overtime work) during a special day that also
falls on his or her rest day, he or she shall be paid an additional 30% of his or her rate on
the said day.
2.12.1 Methods of Rating the Efficiency of the Worker
It is vital to have a suitable approach to evaluate worker efficiency in order to sustain
good worker performance. The basis of measuring the worker’s efficiency in generating
the native placement is good quality, cleanliness, and effectiveness in fulfilling the
needed output.
The most crucial of all of these needs is to provide high-quality product, as this will
improve the company’s competitiveness. It is critical to assess worker effectiveness so
that we can identify individuals with high outputs and those who require additional
training and has issues with the methods used, as well as the materials and equipment
used.
Formula used:
Total Wage=( Standard Rate x Incentive Percentage ) + Standard Rate
2.13 Equipment and Tools Needed

A tool is any tangible item that can be utilized to attain a goal. Equipment is a
collection of tools, devices, and equipment put together for a certain purpose.
The tools and equipment required for the production are listed below:
Table 2.8
Machines, Tools and Equipment Needed
Tools and Equipment Quantity Description Cost/Product Total
(Php) Cost
(Php)
Scissors
Primarily used for

4 cutting out patterns 175.00 700.00
in the fabric.
Sewing Pins and Pin

Cushion Sewing pins are
used to hold the
16 fabric together 124.00 1,984.00
prior to sewing.
Pin cushion is used
to hold or store
pins or needles
Juki Highspeed
SewingmachineDDL-
8700 A machine used to
stitch the fabric
4 and other pliable 20,000.00 80,000.00
materials together
with threads.
Sewing machine needles 4 Used to puncture 220 880

the fabric
Tape measure
Used primarily for
taking body
measurement, as
well as drafting
4 patterns, 10.00 40.00
measuring fabric,
specifying the
length of a
garment, and much
more
Razor Blades
Helps to pull the
two layers of
40 fabric away from 2.8 112.00
each other as you
are ripping with
these fabric
Total 83,716.00
2.14 Principles of Motion Economy

The principle of motion economy is a series of guidelines that recommends ways
to enhance manual labor in manufacturing by reducing worker fatigue and unnecessary
motions, which can lead to a reduction in work-related trauma.

2.14.1 Therbligs
Therbligs is a mechanism that analyzes the motions involved in carrying out a
task. Identification of specific movements and moments of delay in the process was
intended to identify unnecessary or inefficient motions and even split-seconds of wasted
time can be utilized or eliminated.
Table 2.9
Therbligs Symbols
Therbligs Symbol Therbligs Symbol
Reach RE Select SE
Move M Position P
Grasp G Inspect I
Release RL Plan PL
Pre-Position PP Unavoidable Delay UD
Use U Avoidable Delay AD
Assemble A Rest to Overcome R

Fatigue
Disassemble DA Hold H
Search S
This section provides a brief description of the motions or movements in which
the production operation makes use of both left and right hands. Furthermore, it indicates
whether or not the worker is effective at his job. The series of motions and activities of
the left and right hand with corresponding time and space symbols derived from therbligs
are shown in the table below.
Table 2. 10
Therbligs of the Processes
ZIP UP HOSPITAL GOWN

RIGHT HAND LEFT HAND
TIME DESCIPTION SYMBOL SYMBOL DESCRIPTION TIME

(mins) (mins)
MATERIAL PREPARATION
GETTING RE R RELAX 0.83
0.83 THE
MATERIALS G R
M R
RL R
0.50 FREEING G H HOLD

FROM DUST
H H
I H
RL H
S H
MEASURING AND PATTERN MAKING

1.20 Tracing the UD UD HOLD 1.20
front panel G H
pattern with
chalk. U H
RL H
1.20 Tracing the PP H HOLD 1.20
back panel
pattern with G H
chalk U H
RL H
0.60 Tracing the UD UD HOLD 0.60

sleeves with RE H
chalk.
PP PP
G H
U H
RL H
0.60 CHECK AND UD UD Check and 0.60
MEASURE G G measure
AGAIN again
H H
I I
RL RL
CUTTING
1.02 CUTTING UD H HOLD 1.02
THE PRE- U H
MEASURED
M H
FRONT
PANELS OF PP H
THE SHIRT
G H
H H
RL H
0.10 SET ASIDE RE R RELAX 0.10
G R
H R
RL R
0.19 CUTTING UD UD HOLD 0.19
THE RIGHT U H
AND LEFT
M H
SLEEVE
PP H
G H
H H
RL H
0.10 SET ASIDE RE R RELAX 0.10
G R
H R
RL R
1.00 CUTTING 2M UD UD HOLD 1.00

X 1 INCH RE RE
FOR TIE U H
RL RL
0.16 MOVE TO G G MOVE TO 0.16
THE THE
H H
MACHINE MACHINE
UD UD
M M
RL RL
ASSEMBLING AND STITCHING/SEWING
6.14 MAKING UD G HOLD 6.14
EDGING
G H
U RL
PP RE
M PP
H G
PP H
G RL
U RE
PP PP
RE G
PP H
H RL
RL PP
U RE
G G
H H
H RL
U PP
RL G
U H
PP RL
G PP
H H
RE U
RL H
G
H
RL
0.10 HOLD H G SET ASIDE 0.10
H H
H RE
RL RL
2.35 FOLDING G G FOLDING 2.35
AND AND SEWING
H PP
SEWING THE THE SLEEVE
SLEEVE I G CUFFS.
CUFFS
H H
U I
RE H
H H
PP H
G PP
H G
RE H
U RE
U H
0.10 SET ASIDE RE RE SET ASIDE 0.10
G G
H H
RL RL
4.17 ATTACH THE PL PL ATTACH THE 4.17
FRONT AND FRONT AND
PP PP
BACK BACK PANELS
PANELS U H
H G
U H
I I
PP H
G H
RL H
U PP
PP H
U H
H PP
I H
U PP
PP I
RE RL
U
I
0.10 SET ASIDE RE RE SET ASIDE 0.10
G G
H H
RL RL
10.05 ATTACH THE A I ATTACH THE 10.05
LEFT AND I H LEFT AND
RIGHT RIGHT
U H
SLEEVES, SLEEVES,
SEW RE H SEW
U H
H H
RE I
U UD
U
I
UD
0.58 ATTACH 2M G G ATTACH 2M 0.58
X 1 INCH TIE X 1 INCH TIE
H H
BELOW THE BELOW THE
ARM IN U I ARM IN
BOTH SIDES. I UD BOTH SIDES.
RE
U
UD
13.56 SEW VELCRO PP H SEW VELCRO 13.56
TAPE IN PL H TAPE IN
RIGHT AND RIGHT AND
U H
LEFT SIDE OF LEFT SIDE OF
THE SHIRT. U H THE SHIRT
U PP
I U
PP H
U H
PP I
PL PP
I H
PP H
RE PP
U RL
PP UD
H
PP
11.18 FACING AND PL PL FACING AND 11.18

CUTTING CUTTING
U U
EXCESS EXCESS
THREAD. I I THREAD.
H H
PL PL
RE H
A M
U G
M H
G U
U A
U H
A PP
H H
PP RL
U
RL
CHECKING AND STORING

0.48 CHECKING G G CHECKING 0.48
THE VELCRO THE VELCRO
I I
OR DEFECTS OR DEFECTS
RL RL
2.15 Layout of Production Area
It is intended for the proper sequence and arrangement of the facilities and
equipment used in the production area, such as tools, furniture, and fixtures. The facilities
are designed to assist the business in meeting its production requirements. This allows for
faster process mobility while maintaining an acceptable space between workstations.
Figure 9 depicts the layout design used in Zip Up Hospital Gown manufacture.
Figure9 Lay-out of the Production Area

Chapter III
Material Requirement
Materials are critical requirements in the production of the product. These
materials are critical in the transformation of raw materials into finished goods or
products. Its quantity and quality will undoubtedly reflect the finished product’s quality.
Material requirement is a means of specifying the quantity and quality of raw materials
required in manufacturing the product.
Materials needed considers the availability of materials for manufacturing as well
as other associated parameters. It is a type of planning that focuses on process
management in manufacturing industries. Material requirement techniques are used to
deconstruct bills of materials, compute net material requirements, and plan future
production.
3.1 Product Structure Tree
Product structure tree shows the hierarchal presentation of the materials that the
Zip up Hospital Gown is composed of. The strategic scheme is expected to directly
pursue the company’s goals of ensuring material availability for daily operations, client
accessibility from suppliers, maintaining the lowest material and product stages in the
shop, and planning production, material delivery schedules, and procurement activities
accordingly.
Figure 10 Product Tree
3.2 Specification of Materials
The table below shows the bill of raw materials needed in the production.
Table 3.1
Specification of Materials
CODE PARTICULARS MATERIALS SPECIFICATION
CF Cloth/fabric 100% Cotton Fabric

V Hook and loop fastener Velcro Tape
T Thread Apple Polyester thread
PB Packaging Material Paper Bag
The table above presents the different specification of each material to be used in
the production of Zip Up Hospital Gown and these should be followed to produce that
specific product.
3.3 Bill of Materials
The table belowillustrates the materials needed to produce with its corresponding
expenses.
Table 3.2
CODE MATERIALS QUANTITY MATERIAL QUANTITYUSED/ COST PER UNIT

ON
PURCHASE PRICE UNIT
CF Cotton fabric 1 roll (54.86 ₱3,700 1.2 meters by 2.49 ₱ 80.93

meters length meters
and 2.49
meters width)
VT 1” Velcro Tape (25 ₱318 2 meters ₱25.44
m) 25 meters
T Apple Polyester ₱480 20.8 meters ₱9.98

Thread 1000
metersin 1
piece
PB Paper Bag 100 pieces ₱75 1 piece ₱0.75
TOTAL ₱117.1
Bill of Materials
Chapter IV
INVENTORY CONTROL
Inventory is a type of asset that is meant to be sold in the normal course of business.
Inventory control is the process of having the proper number of parts and products on
hand in order to minimize shortages, overstocks, and other costly issues. It focuses on
reducing the quantity of slow-selling products purchased by a corporation while
increasing the number of high-selling products purchased. They avoid committing
valuable storage space to those products, which reduces carrying costs and makes way for
faster-selling products.
4.1 Economic Order Quantity
Economic order quantity is an equation for inventory that determines the ideal
order quantity a company should purchase for its inventory gives a set cost of production,
demand rate and other variables. This is done to minimize variable inventory cost, and
the formula takes into account storage, or holding cost, ordering cost and shortage cost.
The full equation is as follows:

 Where: A = Annual cost (units)

O = ordering cost per unit
C = carrying cost
Sample computation for Head:
 For Quantity per Year (A):
A= (per unit X units per year x weeks)
A = pcs.
 For Ordering Cost (O):
The cost for the transportation in ordering the product is PHP
Standard Local shipping= Php 152.00
 For Carrying Cost C:
C = 20% of the Buying Cost
C= (0.20x)
C = Php
 For annual usage of materials used
quantity used per unit (Zip−up annual demand)

Quantity of material per year =
material quantity on purchasing
Solve for EOQ:

Table 4.1
Economic Order Quantity

ECONOMIC ORDER QUANTITY (EOQ)
CODE MATERIALS QUANTITY UNIT ORDERING UNIT CARRYIN EOQ

OF COST COST G COST
MATERIAL (Php) (Php) (20%)
PER YEAR
CF COTTON 25.57 Rolls 157 ₱ 3,700 740 3.29

FABRIC
VT VELCRO 93.52 Rolls 157 ₱ 318 63.6 21.49

TAPE
T THREAD 24.32 Pieces 157 ₱480 96 8.91
PB PAPER BAG 11.69 Bundle 157 ₱ 75 15 15.64

4.2 Safety Stock
Safety Stock is an additional quantity of an item held in inventory in order to reduce the
risk that the item will be out of stock. And acts as a buffer in case the sales of an item are
greater than planned and/or the supplier is unable to deliver additional units at the
expected time. In order to produce for safety stock, since there is no past data, the
maximum capacity of the production,32 units per day, will be used as the maximum daily
use and the ideal output of the production, 25 units per day will be used as the average
daily use.The following formula will be used with average and maximum lead time of 6
days.
Safetystocks=( Maximum daily use∗maximum lead time∈days )−( average daily use∗average lead time∈ da
Sample computation:
32 units(quantity used per unit )

Maximum usage rate per week=
25 units (quantity used per unit)

Average usage rate per week=
Table 4.2
Safety Stock
SAFETY STOCKS
CODE MATERIALS MAXIMUM AVERAGE UNITS LEAD TIME SAFETY STOCK

USAGE DAILY USAGE DAILY (days)
CF COTTON 0.70 0.55 Rolls 6 0.89

FABRIC
VT VELCRO TAPE 2.56 2 Rolls 6 3.36
T THREAD 0.67 0.52 Pieces 6 0.90
PB PAPER BAG 0.32 0.25 Bundle 6 0.42

4.3 Re-ordering Point
The reordering level or point (ROP) is the inventory level at which a company would
place a new order or start a new manufacturing run. The proponents used 1 week or 6
working days as lead time when ordering items. When a business is holding a safety
stock to act as a buffer if daily usage accelerates the reorder level, the formula in finding
the ROP is:
ROP=( Lead time x Average Usage Daily ) + safety stocks
Table 4.3
Re-ordering Point
RE-ORDERING POINT
CODE MATERIALS AVERAGE LEAD SAFETY ROP

USAGE TIME (day) STOCK
DAILY
CF COTTON 0.55 6 0.89 4.19
FABRIC
VT VELCRO 2 6 3.36 15.36
TAPE
T THREAD 0.52 6 0.90 4.02
PB PACKAGING 0.25 6 0.42 1.92

BAG
4.4 Number of Order per Year
The reordering level or point (ROP) is the inventory level at which a company
would place a new order or start a new manufacturing run. When a business is holding a
safety stock to act as a buffer if daily usage accelerates the reorder level, the formula in
finding the ROP with an annual demand of 1,169 is:
material used per unit (annual demand )

Quantity of materials per year =
Quantity of materials per year

Number of Orders per Year=
EOQ
Table 4.4
Number of Orders per Year
NUMBER OF ORDER PER YEAR
CODE MATERIALS QUANTITY OF UNIT EOQ NUMBER OF

MATERIALS ORDER/ YEAR
PER YEAR
CF COTTON 25.57 Rolls 3.29 8
FABRIC
VT VELCRO 93.52 Rolls 21.49 5
TAPE
T THREAD 24.32 Pieces 8.91 3
PB PACKAGING 11.69 Bundle 15.64 1

BAG
4.5 Length of Order Cycle

The Length of Order Cycle is the duration between orders. The formula in finding
the length of order cycle is as follows:
Length of Order Cycle= ( Quantity of materials per year )

Economic Order Quantity
x working days
Table 4.5
Length of Order Cycle
LENGTH OF ORDER CYCLE
CODE MATERIALS EOQ QUANTITY NUMBER LENGTH OF

OF OF ORDER
MATERIAL WORKING CYCLE
S YEAR DAYS (days)
CF COTTON 3.29 25.57 48 7
FABRIC
VT VELCRO TAPE 21.49 93.52 48 11
T THREAD 8.91 24.32 48 18
PB PACKAGING 15.64 11.69 48 65

BAG
Chapter V
UNIT COST AND UNIT PRICE
5.1 Cost of Materials
Simply expressed, materials costs are the costs of direct materials used in
theproductionofaproductor the deliveryofaservice. Raw material costs anddirectmaterial
costs are two phrases that describe the cost of basic materials in a product or
service.Overheadlaborandproductionexpensesarenotthesameasmaterialcosts.
5.1.1 Direct Materials Cost
Direct Materials are the primary materials utilized in manufacturing. Cotton fabric is the
primary material used in the creation of Zip Up Hospital Gown.
Table 5.1
Direct Materials Cost
CODE MATERIALS COST PER UNIT OF ZIP
UP HOSPITAL GOWN
CF Cotton Fabric Php80.93
V Velcro Tape Php 25.44
T Thread Php 9.98
Total Php116.35
5.1.2 Indirect Materials Cost
These materials are usually purchase in bulk.
Table 5.2
Indirect Material Cost
CODE MATERIALS COST PER UNIT OF ZIP
UP HOSPITAL GOWN
PB Paper Bag Php 0.75
Total Php 0.75
5.2 Cost of Labor
Cost of labor indicatesthe overall cost of the employee's wages as well as the
employer'sbenefits.
5.2.1 Direct Labor Cost
Is labor involved directly in the manufacturing of the product.
Thefollowingwageiscalculatedbasedonthenon-agricultural first-class municipality on
DOLE National Wages and ProductivityCommission.

Table 5.3
Direct Labor Cost
DIRECT NUMBER OF TOTAL DAILY MONTHLY COST PER

LABOR WORKER WAGE (PHP) SALARY UNIT (PHP)
(PHP)
Tailors or
Seamstress 4 425 40, 800 68.00
(skilled
workers)
Total Direct Labor Cost per Unit Php 68.00
Php 40 , 800.00
Direct Labor Cost per Day=
24 days
= Php1,700 per day
Php 1,700
Direct Labor Cost per Unit=
25 units
= Php68 per units
5.2.2 Indirect Labor Cost
These are workers whose role is not directly involved in making the product, but which is
required in order to make business possible. Indirect labor is composed of administrative
personnel and other employees.

Table 5.4
Indirect Labor Cost
LABOR NUMBER OF TOTAL MONTHLY COST PER

WORKER DAILY SALARY UNIT (PHP)
DIRECT WAGE (PHP) (PHP)
General
Manager 1 500 12,000 20.00
Shop keeper
1 425 10,200 17.00
Total Indirect Labor Cost per Unit Php37.00
Php22,200
Indirect Labor Cost per Day=
24 days
=Php925.00 per day
Php 925
Indirect Labor Cost per Unit=
25 units
= Php37 cost per unit
5.3 Overhead Cost
Overhead costs are all income statement costs except direct labor, direct
supplies,anddirectexpenditures.Overheadcosts,alsoreferredtoas overheador
operatingexpenses, are those expenses associated with running a company that cannot be
related toproducing or manufacturing a product or a service. They are the expenses the
businessincurstostayinbusiness,regardlessofitssuccesslevel.
5.3.1 Power/ Energy Cost
Energy cost is the expense in curred in the assembly that gives an additional expense in the general cost of the product being
made.
Table 5.5
Energy / Power Costs
Tools / Quantity Wattage Operating Power Rate Daily Monthly Energy Cost Yearly Energy Cost
Equipment Hours (Php/kWh) Energy Cost
(KW)
T8 LED Tube 14 0.008 8 12 10.752 258.048 3,096.576
Juki Sewing 4 0.3 8 12 115.2 2,764.80 33,177.60

Machine
Table Lamps 4 0.040 8 12 15.36 368.64 4,423.68
Fingerprint 1 0.002 8 12 0.192 4.608 55.296

Time Clock
Telephone 1 0.003 8 12 0.288 6.912 82.944
Computer Set 1 0.25 8 12 24 576.00 6,912.00

Printer 1 0.04 8 12 3.84 92.16 1,105.92
Internet 1 0.006 8 12 0.576 13.824 165.888

Router
Electrical 4 0.045 8 12 17.28 414.72 4,976.64

Stand Fan
Water 1 0.074 8 12 1.184 28.416 340.992

Dispenser
TOTAL ENERGY COST 188.672 4,528.128 54,337.536

Daily Energy Cost

Energy Cost per Unit =
Units per Day
= Php 7.36 per unit
Table 5.6
Water expense
WATERCOMSUMPTIONANDEXPENSE
CONSUMPTION CHARGES(PHP) CU/ TOTALCOST(P

M HP)
First10cubicmeters 48.7 10 487
11 to20 15 0 0
cubicmeters
21 to30 17.65 0 0
cubicmeters
31cubicmeterandab 48.4 0 0
ove
WaterExpensePerMonth Php 487.00
Table 5.7
Utilities Expense
UTILITIES Cost per Month (Php) Cost per Year (Php)
Water 487.00 5,844.00
Internet 1,699.00 20,388.00

Total 2,186.00 26,232.00
Monthly Cost
UtilitiesCost per Day=
24 Days
= Php 91.08
Php 91.08
UtilitiesCost per Unit=
25 units
Utilities Cost per Unit = Php3.64 per unit
Table 5.8
Rent Expense
Monthly Rent Expense Units Per day Daily Rent Expense
Php 10, 000 25 416.67
Total Cost Per Unit 16.67
5.3.2 Depreciation Cost
Straight line method is used in calculating the depreciation of the machineries and
equipment, furniture’s and fixtures, office equipment and the Personal Protective
Equipment (PPE). It is assumed that the salvage value of equipment is zero (0).
Total Daily Depreciation Cost

DepreciationCost per Unit =
Total Output per Day
Table 5.9
Depreciation Cost for Tools, Machineries and Equipment
Particular Total Price Life Depreciation Depreciation Daily Depreciation
(Php) Span per Year per Month Depreciation Cost per Unit
(years) Cost (Php) (Php)
Scissors 175.00 2 87.50 7.29 0.24 0.0097
Sewing Pins
and Pin 124.00 1.5 82.67 6.89 0.23 0.0092
Cushion
Juki
Highspee
d
Sewingmachi 20,000 9.89 2,022.00 168.50 5.62 0.22
neDDL-8700
Tape 10.00 3 3.33 0.2775 0.0093 0.00037
measure
TOTAL 0.24
Depreciation Cost for Tools, and Equipment = Php 0.24 per unit
Table 5.10
Depreciation Cost for Furniture and Fixtures
(Php) Span per Year per Month Depreciation Cost per
(years Cost (Php) Unit (Php)
Fingerprint 1,554.00 5 310.80 25.90 0.86 0.034
Time Clock
Table 120.00 3 40.00 3.33 0.11 0.004
Lamps
Electrical 1,550.00 3 516.67 43.06 1.44 0.058
Stand Fan
Water 3,001.00 5 600.20 50.02 1.67 0.067
Dispenser
Trash Can 550.00 3 183.33 15.28 0.51 0.02
Office 5,439.00 10 543.90 45.33 1.51 0.06

Table
Locker 9,500.00 10 950.00 79.17 2.64 0.106
Cabinets
360-degree 827.00 5 165.40 13.78 0.46 0.018
Adjustable
Chair
Office 827.00 10 82.70 6.89 0.23 0.009
Chair
Filing 7,875.00 10 787.50 65.63 2.19 0.088
Cabinet
Wooden 5,500 10 550.00 45.83 1.53 0.061
Cabinet
Reception 23,000.00 10 2,300.00 191.67 6.39 0.26
Desk
Cash 8,219.24 5 1,643.85 136.99 4.57 0.18
Register
Stainless 2,662.00 5 532.40 44.37 1.48 0.059
Steel
Display
Rack
TOTAL 1.03
Table 5.11
Office Tools and Equipment
(Php) Span per Year per Month Depreciation Cost per
Cost (Php) Unit (Php)
PLDT
Prepaid 2,778.10 5 555.62 46.30 1.54 0.0616
Landline
Computer 10,449.0 5 2,089.80 174.15 5.81 0.2324
Set 0
Printer 9,152.49 5 1,830.50 152.54 5.080 0.2032
TOTAL 0.50
5.4 Production Cost
In computing the unit cost, all costs incurred in the production of the product per
unit should be determined. The table below shows the summary of costs incurred in the
production of Zip Up Hospital Gown per units.
Table 5.12
Summary of Costs
Particulars Cost per Unit Mark Up Price

(Php) (Php)
Direct Materials 116.35
Direct Labor 68
Factory Overhead
Indirect Materials 0.75
Indirect Labor 37
Energy Cost 7.36

Utilities Expense 3.64
Depreciation of Tools and Equipment 0.24
Depreciation of Office Tools and Equipment 0.50
Depreciation of Furnitures and Fixtures 1.03
Rent Expense 16.67
Total Production Cost 251.54
Mark Up Price (15%) 37.73
5.5 Unit Price
The overall cost of the product’s materials and ingredients is referred to as the
product price or the unit price. However, when determining the product pricing, the
company wishes to favor potential markets. The proponents used 15% markup price since
the business is done to help hospitals and patients.
Unit Price=Production Cost per Unit +¿
(Production Cost per Unit x 15 % markup)
= Php 251.54 + (Php 251.54 x 0.15)
=Php 289.27 or 290.00

5.6 Discussion of the Value of Money
The market value of the product is Php 290 only. The product is worth the price
because of the materials used and its functionality.
The value of the money means that the benefits that the buyer will have in using
the product is worth more than the money that will be spent by him upon buying the
product.
Chapter VI
INCENTIVE POLICY
Any inducement or additional benefit that serves as a stimulant for a preferred
action or behavior is regarded as an incentive. Companies utilize incentive programs to
recognize and reward exceptional performance in their employees while also motivating
them to become more effective and productive. Employee incentive programs that are
well-planned typically result in stronger teams and more productive workforce.
The biggest incentive that the company may provide to the employees to motivate
them in completing their jobs is calculated for salaries and wages using the employee's
group incentive plan. This chapter details the many benefits and compensation packages
available to employees.
6.1 Salaries and Wages

Each employee's salary and earnings will be paid on the fifth and twentieth days
of each month.
For specific dates of the month, incentives and allowances are already built in.
Every 15th and 30th of the month is the deadline for payroll compensation.
However, there are rules in place to ensure that employees are paid fairly and have
enough benefits.
Minimum wage, health insurance benefits, and holiday pay are all examples of this.
6. 2 Performance Based Incentives
This is a method of motivating employees by outlining their tasks and tying
compensation to a specified degree of performance.

Employee motivation and development are aided by linking rewards to performance.
An employee will be rewarded if he or she meets all of the standards or produces
all of the daily required outputs in this type of reward scheme.
Employees will be driven to focus on their assigned task in order to satisfy the company's
output requirements, as well as to complete a task if they believe they will receive a
specific incentive.
6.3 Employee Recognition
Non-monetary incentives are used to inspire staff in this type of compensation
system. This provides more opportunities to inspire staff for an entrepreneur who has
more imagination than capital. There are numerous ways to get recognized. It includes
frequent recognition events such as employee of the month or year, an annual report that
highlights employee achievements, and department or company recognition boards that
assist raise employee morale for exceptional efforts. Employee recognition is also aided
by positive comments from supervisors and managers. Employees can also be motivated
by symbolic recognition, such as plaques or coffee cups with inscriptions.
Furthermore, a job well done can be recognized by offering additional support or
empowering staff in ways like higher authority and greater assignment choice.
6.4 Overtime Pay

Work may be done for more than eight hours each day if the employee is
compensated for the extra time. Overtime pay is a monetary bonus for an eligible
employee who works more than the standard working hours per day. Overtime pay rates
vary depending on whether the labor is done on a regular working day, a special day, a
holiday, or a day off.
6.5 Overtime Pay Rates
The following are the overtime pay rates, which vary depending on the day of the
work:
On typical working days, for work in excess of eight (8) hours:
plus, a quarter-hourly rate of 25%
On a scheduled rest day, a special day, or a normal holiday, for work in excess of
eight (8) hours: Plus 30% of the previous days' hourly rate
6. 6 Holiday Pay
Holiday pay is the portion of the usual daily compensation paid to an employee
for any regular holiday that is not worked.
6.7 Regular Holidays

New Year’s Day, Independence Day, and Christmas Day are examples of regular
holidays with fixed dates. National Heroes Day, as well as religious holidays like
Maundy Thursday, Good Friday, Eid'l Fitr, and EidulAdha, are the sole exceptions to this
law. Every employee who is subject to the holiday pay rule is subject to their daily basic
wage. If an employee fails to report to work, the department of Labor and Employment
states that he or she will be paid 100% of his or her income for that day. An employee is
entitled to an additional one hundred percent of his or her basic compensation if he or she
is forced to labor that day.
When an employee's scheduled rest day falls on a holiday, the work done on that
day is worth at least 30% more than the employee's standard holiday rate of 200 percent,
for a total of at least 260 percent. Even if Araw ng Kagitingan coincides with Maundy
Thursday or Good Friday, a covered employee is entitled to at least two hundred percent
(200%) of his or her basic income.
If a regular holiday falls on a Sunday, the following Monday is not a holiday
unless a proclamation declaring it a special day is published or the law is otherwise
modified. Unless otherwise modified by law, decree, or proclamation, the following are
the ten (10) regular holidays recognized by Executive Order No. 292 as revised by
Republic Act 9492.
New Year`s Day January 1

Maundy ThursdayMovable Date
Good FridayMovable Date
Araw ng KagitinganApril 9
Labor DayMay 1
Independence DayJune 12
National Heroes DayLast Monday of August
Bonifacio DayNovember 30
Christmas DayDecember 25
Rizal DayDecember 30
6.8 Premium Pay
Premium pay is an additional compensation for work performed within eight (8)
hours on rest days and special days which are considered as nonworking days.
6.9 Special Non-Working Holidays
Workers who are not required or permitted to work on special days are not
entitled in any compensation. During these days, if the employees did not work, the
principle “no work, no pay” shall apply unless there is a favorable company policy or
without prejudice to any voluntarily practice in the Collective Bargaining Agreement
(CBA) granting payment of wages and other benefits on special days.

The following are the six (6) special holidays in a year under Executive Order No.
292 as amended by the Republic Act 9492 unless otherwise modified by law, order or
proclamation.
Chinese New Year Movable Date
EDSA People Power Revolution February 25
Black Saturday Movable Date
Ninoy Aquino Day August 21
All Saints Day November 1
6.10 Special Worked Days
For labor performed on a declared special working day, an employee is entitled to
their daily salary rate. Work completed on this day is deemed ordinary workday, hence
no premium pay is required.
6.11 Premium Pay Rates
The following are the legal minimum wage rates:
1. On rest days or special days, for work done
Plus 30% of the daily basic rate of 100% (a total of 130%)

2. For work completed on a designated rest day.
Plus 50% of the daily basic rate of 100%, for a total of 15%.
3. Work completed on a scheduled holiday that simultaneously serves as a day of rest.
Plus 30% of his regular holiday rate of 200 percent based on his daily basic wage rate,
for a total of 260 percent.
6.12 13th Month Pay
The 13th month pay is a monetary reward that is equal to an employee's monthly
basic compensation multiplied by the number of months the employee has worked for the
employer in a calendar year.
The employee's basic salary, which will be used to calculate the 13th month pay,
shall include all remunerations or earnings paid by an employer to an employee for
services rendered, but excludes allowances and monetary benefits that are not considered
part of the regular or basic salary, such as unused vacation, sick leave credits, overtime,
premium, night differential, and holiday pay.
The 13th month pay is due on December 24 of each year. An employer, on the other
hand, has the right to provide his or her employees with benefits.
6.13 Parental Leaves
The Philippine Labor Code recognizes three types of parental leave: maternity
leave, paternity leave, and single parent leave.

6.13.1 Maternity Leave (as amended by RA 11210)
An act increasing the maternity leave period to one hundred five (105) days for
female workers with an option to extend for an additional thirty (30) days without pay,
and granting an additional fifteen (15) days for solo mothers, and for other purposes
(a) A female Social Security System (SSS) member who has paid at least three (3)
monthly contributions in the twelve (12)-month period immediately preceding the
semester of her childbirth, miscarriage, or emergency termination of pregnancy shall be
paid her daily maternity benefit which shall be computed based on her average monthly
salary credit for one hundred five (105) days, regardless of whether she gave birth via
caesarian section or natural delivery, subject to the following conditions:
■ That the female worker shall have notified her employer of her pregnancy and the
probable date of her childbirth, which notice shall be transmitted to the SSS in
accordance with the rules and regulations it may provide;
■ That the full payment shall be advanced by the employer within thirty (30) days from
the filing of the maternity leave application;
■ That payment of daily maternity benefits shall be a bar to the recovery of sickness
benefits provided under Republic Act No. 1161, as amended, for the same period for
which daily maternity benefits have been received;

■ That the SSS shall immediately reimburse the employer of one hundred percent (100%)
of the number of maternity benefits advanced to the female worker by the employer upon
receipt of satisfactory and legal proof of such payment; and
■ That if a female worker shall give birth or suffer a miscarriage or emergency
termination of pregnancy without the required contributions having been remitted for her
by her employer to the SSS, or without the latter having been previously notified by the
employer of the time of the pregnancy, the employer shall pay to the SSS damages
equivalent to the benefits which said female member would otherwise have been entitled
to.
Entitlement
All women workers, regardless of civil status or legitimacy of her child shall be
granted 120 days maternity leave with pay and an option to extend it for another 30 days
without pay. This would make the Philippines compliant with the International Labor
Organizations standards on maternity protection, which mandates a minimum of 98 days
maternity leave.
The employer shall advance full payment of the leave within 30 days from the
filling of the maternity leave application. Women who avail maternity leave and benefit
shall be assured of security of tenure. It cannot be used as basis for demotion in
employment or termination.
6.13.2 Paternity Leave (RA 8187)
According to RA 8187, paternity leave benefits are offered to married male employees in
the commercial and public sectors who are lawfully married, cohabiting with their
legitimate wives, and their wives are pregnant, have given birth, or have experienced a
miscarriage.
Paternity Leave Benefits
Paternity leave benefits may be taken before, during, or after delivery, as long as
the total number of working days is not more than seven (7), and he is paid in full,
including his basic salary and any mandatory allowances determined by the Regional
Wage Board, if any, and his pay is not less than the mandated minimum wage.
The benefit, however, will only apply to the employee's lawful wife's first four (4)
deliveries, and it must be used within sixty (60) days of the delivery date.
6.13.2 Solo Parent Leave
RA 8972 established a comprehensive range of services for single parents and
their children. This rule applies to fathers and mothers who are raising their children
alone due to the loss of a spouse, abandonment, separation, or even rape. A single parent
who is left to care for children who are not their own, such as nephews, nieces, or
godchildren, is also covered by this rule. To be eligible for a solo parent leave under RA
8972, an employee must have worked for at least a year.

A maximum of seven (7) working days of parental leave shall be granted each year.
6.14 How to obtain Solo Parent ID?
A single parent ID is required for anyone who is qualified and qualifies to obtain
the benefits of the solo parent legislation.
The Local Social Development Office should receive the following materials.
A barangay certificate verifies that you have lived in the barangay for at least six months.
 Any document demonstrating the applicant's income, such as an income tax return
 The documents will be checked by social welfare, and once verified, the applicant
will be granted a case number in the Registry of Solo Parents logbook.
After then, a oneyear solo parent ID will be given, which needs be renewed.
6.15 Sick Leave
Employees are entitled to sick leave under the following conditions:
 For the first two years of service, you are entitled to a total of twelve (12) days of
sick leave per year.
 Starting in the second year of service, you will receive an additional one (1) sick
leave every year.
 Total sick leave is limited to (fifteen) fifteen days.

 All unused sick leave days are convertible to cash in December of each year.
6.16 Vacation Leave
Employees are given vacation leave in advance of the following rules:
 A year with thirteen (13) vacation days.
 Starting in the second year of service, you will receive an additional (one)
vacation day per year.
 When unused at the end of the year, it can be converted to cash.
 Maximum total vacation leave is eighteen (18) days a year
6.17 PAG-IBIG Contribution
If an employee has a strong financial standing and is between the ages of 18 and
65, he or she can join the Home Development Mutual Fund (HDMF) under voluntary
membership. He or she must, however, meet with the requirements and submit as a PAG-
IBIG member in accordance with the organization's rules and regulations, as well as the
payment and contribution schedule.
6.18 Phil Health Benefits (RA 7875, As Amended by RA 9241)
6.18.1 National Health Insurance Program

Through the National Health Insurance Program, the Philippine Health Insurance
Corporation, or Phil Health, a government body, executes the National Health Insurance
Act of 1995. NHIP replaced and improved the previous Medicare program, which had
been in place for 23 years. In conjunction with other government health initiatives, its
mission is to provide all citizens with a method to get financial access to health care.
Benefits
A unified benefit package for all Phil Health members is being implanted which
includes the following categories of personal health services.
a. For inpatients:
 Room and board
 Services of health care professionals
 Diagnostic, laboratory and other medical examination services
 Use of surgical and other medical examination services
 Prescription drugs and biological, subject to limitations as stated in Section 37 of
RA 7875
 Inpatient education packages
b. For outpatients:
 Services of health care services

 Diagnostic, laboratory and other medical examination services
 Personal preventive services
 Prescription drugs and biological, subject to limitations as stated in Section 37 of
RA 7875
 Emergency and transfer services
6.19 Retirement Pay (Article 287. As amended by RA 7641)
The employee is entitled to retirement benefits in the event of retirement.
 An employee who has served at least five (5) years and has reached the age of
sixty (60) years or more, but not beyond sixty-five (65) years, which is hereby
declared the mandatory retirement age, may retire and be entitled to at least one-
half (1/2) month salary for each year of service, with a fraction of at least six (6)
months being considered as one whole year.
6.20 Benefits under the Employees’ Compensation Program (PD 626)
The Employees’ Compensation Program
The Employees Compensation (EC) program aims to assist workers who suffer work-
connected sickness or injury resulting in disability or death.
Coverage
 All SSS-registered employers and their employees are compulsory covered under
the program. Employers and employees registered in the SSS need not register
again under EC.
 The SSS has been duly notified of such sickness, injury or death.
Benefits
 Medical services, appliances and supplies provided to the afflicted member
beginning on the first day of injury or sickness, during the subsequent period of
disability, and as the progress of recovery may require.
These benefits are limited to the ward services only of an accredited hospital and
physician. Ward services, consist of all the services some in-patients would ordinarily
receive in a hospital.
 Rehabilitation services, consisting of medical, surgical and hospital treatment.
The SSS also provides as soon as practicable, a balanced program of remedial treatment
for handicapped member.
Income cash benefit for:
 Temporary total disability or sickness. An income cash benefit equivalent to 90%
of the average daily salary credit with a minimum of Php 10 and a maximum of
Php 200.
 Permanent total disability (loss of two limbs, permanent complete paralysis of two
limbs, etc.). This benefit is a monthly pension paid for as long as the injured lives
plus 10% for each of the five dependent children beginning with the youngest and
without substitution. This is guaranteed for five years but will be suspended if the
employee is gainfully employed, recovers from permanent total disability, or fails
to present itself for examination at least once a year. The minimum monthly
income benefit is Php 2, 000.00.
 Permanent partial disability (such as loss of one thumb, finger, leg). A monthly
pension is provided to the member equivalent to the pension for permanent total
disability but limited to the number of months designated by law for a particular
disability. The minimum monthly pension is Php 2, 000.00
However, if the period of permanent partial disability pension is less than a year, the
benefit may be paid in lump sum.
 Death. A monthly pension is provided to the deceased member’s primary
beneficiaries, plus 10% of such benefit for each of five dependent children,
subject to some limitations. In the absence of primary beneficiaries, the secondary
beneficiaries are entitled to the monthly pension but not to exceed 60 months. The
minimum monthly pension for the death benefit is Php 2, 000.
Under the EC program, a funeral benefit of Php 10, 000 will also be paid to any person
who actually shouldered the burial expenses of the deceased member.

6.21 One-half (1/2) Month Pay per Year of Service
 In case of termination due to the installation of labor-saving devices or
redundancy-at least one (1) month pay for every year of service, whichever is
higher.
 In case of retrenchment to prevent losses and closures due to serious financial
reverses- at least one (1) month pay or at least one-half (1/2) month pay for every
year of service, whichever is higher.
 No separation pays for closures due to business losses.
 For disease- separation pay equivalent to at least one (1) month pay or to one-half
(1/2) month pay for every year of services , whichever is higher.
 Other instances that separation pay may be awarded:
a. When the employee has been declared illegally dismissed and reinstatement is
no longer possible.
b. At the option of the contractor’s employee upon expiration of the Contractor’s
Service Agreement with its principal.
c. In exceptional cases, where separation pay is awarded as a measure of social
or compassionate justice even if the employee is found to have been at fault for his
dismissal.
6.22 Social Security Benefit (RA 1161, as amended by RA 8282)
6.22.1 The Social Security Program

In the event of death, disability, sickness, maternity, or old age, covered employees are
entitled to a package of benefits under the Social Security Programs. In essence, the
Social Security System (SSS) offers a replacement for income lost due to the
aforementioned events.
The SSS members can also take out "salary" or "calamity" loans. Wage loans are based
on the employee's monthly salary. Calamity loans are for situations where the
government has declared a calamity in the area where the SSS member lives, such as
flooding, earthquakes, and natural calamities.
Coverage
A private employee, whether permanent, temporary or provisional:
 A household helper earning at least Php. 1,000.00 a month is subjected to
compulsory coverage starting September 1, 1993.
Employees are entitled to a package of benefits under the Social Security program and
Employees’ Compensation (EC) program.
The SSS (Social Security System) provides for a replacement of income lost on account
of contingencies. The benefits under the Social Security Program include:
 Sickness
 Maternity
 Disability
 Retirement
 Death
 Funeral
6.23 Separation Pay
A separation pay is the amount received by an employee at the time of his severance and
is intended to give the employee with a source of income while he searches for new
work. Separation compensation is usually only given to employees who have been fired
for good reason or who have diseases that make their ongoing employment illegal or
dangerous to their health or that of their coworkers. The amount of separation pay is
determined by the reason for termination.

Chapter VII
QUALITY CONTROL
Quality control is a process through which a business seeks to ensure that product
quality is maintained or improved with either reduced or zero errors. It involves testing of
units and determining if they are within the specifications for the final product. A major
aspect of quality control is the establishment of well- defined controls. These controls
help standardize both production and reactions to quality issues.
In making the Zip Up Hospital Gown, its main objective is to produce product
that can address the difficulty of patients in changing clothes with good quality. The
company shall create a working environment in which both the employees and its
employer strive to do their best to meet the customer’s demands.
These are the following key areas in performing statistical process control in
making Zip Up Hospital Shirt:
 Accuracy of Cutting. The outputs must be inspected in terms of
component sizes to ensure that they are cut to the specified measurement.
 Accuracy of Measurement. The output must be inspected in terms of
component measurement to ensure whether they fit with their co-
components or not in the allocated space.
 Amount of Strength of the Connecting Materials used in Assembly. The

amount of strength of connecting material to be used and to be applied in
assembly process should also be tested whether it is durable enough to
withstand possible pressure applied to the product or not.
 Stitches on the Components. The stitches should be inspected to ensure
that the product is in good condition.
7.1 Attributes of the Product Requiring Control
A. Main Material Used in Product
This refers to chosen raw materials mainly used in producing Zip Up
Hospital Gown. This product is primarily composed of a Hospital Gown with the
additional features of having Velcro tape on each side of the gown. It also have
ties on each side to ensure that the gown is properly worn.
Table 7.1
Guidelines of Attributes of Product
PRODUCT NAME Zip Up Hospital Gown

BUYER Patients or patient’s family members
DESCRIPTION A hospital gown with Velcro tapes on
each side and ties to aid in changing
clothes while on IV fluids.
Zip Up Hospital Shirt

Specification
Quality Bad Description Good Description
Control
Checking Pill present Smooth
Raw the texture on the fabric texture of the
Material of the fabric
s fabric
Checking
the stitches Poor stitch
technique Properly
stitched
B. Performance of the Worker
Employee performance is the job-related activities expected of a worker and how
well those activities were executed. The objective of business owner is profitability. The
organization’s success depends on the employee’s performance. Many business personnel
directors assess the employee performance of each staff member on an annual or
quarterly basis in order to help them identify suggested areas for improvement. Thus
continuous guidance and closer relationship can also enhance the employee’s learning
curve.
Sharing organizational goals with employees are significant since employees have
direct contact with the production of the product. Creating a well-rounded approach to
managing and coaching workforce requires the expertise of a human resource leader and
the support of company’s executive leadership.
7.2 Variables of the Product Requiring Control
Variables of the product are the characteristics that can be measured. The product and
some of its components must be accurately measured. The following must be considered:
 Part Dimensions. Dimensions of the product components should be
accurately cut in order to ensure good quality product by having parts fitly
connected to each other.
 Amount of Connecting Materials Applied. The amount of soldering lead
and other connecting materials applied in the assembly of product parts
that greatly needed its application must be adequate enough to ensure a
strong bond between the components.
7.3 Suggested Practical Methods of Controlling Attributes
The practical methods of controlling variables are extended to the case of than two
related variables. To meet the required product specification, here are some lists of
methods in controlling attributes:

1. Give accurate and well defined specification of raw materials to prevent
misunderstanding upon delivery.
2. Proper inspection of the received order should also be done. The packaging of the
orders shall be free from harsh deformities.
3. Performance of workers must be evaluated to ensure their capability in
establishing the job properly and of quality.
7.4 Suggested Practical Methods of Controlling Variables
These are the suggested practical methods in controlling variables:
1. Accurate specification of the outsources parts of the product must be given to the
supplier in order to make sure that accurately measured parts will also be
produced by the supplier.
2. There should be an inspection for the received order and the packaging of orders
also shall be free from harsh deformities. Supplier of orders that fail to conform to
the standards of the company shall be notified of the result of the inspection and
actions shall be taken to resolve this issue.
3. Proper orientation of designated task and training to assigned workers in terms of
its method and appropriate tool to be used.
7.5 Inspection Points along the Line

Inspection is an important tool to achieve quality concept. It is necessary to assure
confidence to manufacturer and aims satisfaction to customer.
In order to ensure good quality output, the tailors or seamstress must firstly
inspect the delivery of the raw materials, they must immediately check for the defective
product components before using it to make the Zip Up Hospital Gown.
Another inspection is carried out before packaging and storing of product outputs.
This is to make sure that the product has complied with the standard characteristics of the
expected product. It should be done to protect the consumer from defective products.
The last inspection is done after rework in order to ensure if the product has
already complied with standard requirement of the expected output after undergoing
rework.
Figure 11 Inspection Process Flow Chart
7.6 Statistical Method of Controlling Quality
Statistical Quality Control plays a vital role in quality control and
improvement. It is the application of statistical techniques to measure and evaluate the
quality of a product. It provides the principal means by which a product is sampled,
tested, and evaluated, and the information in those data is used to control and improve the
process and the product.
One of the categories of SQC is the Statistical Process Control in which its
application of statistical techniques in order to determine whether the product is produced
as plan or not. Control charts are important tools in Statistical Process Control. Control is
maintained by using them in order to detect whether the process has changed in a way
that will affect product quality as well as to measure the current quality of products or
services.
7.7 Suggested Tool to Control Attributes
Control charts will be used as a tool to control the attributes. Attributes must be
controlled and monitored in order to avoid further defects in the desired operation.
A control chart for attributes is used to monitor characteristics that are discrete
and can be counted. Often, they are distinguished as bad or good or a simple yes or no.
Control charts for attributes of Zip up Shirt will only require one decision and the number
of defective and non-defective raw materials.
7.8 Suggested Tool to Control Variables

Control charts will also be used as a tool in controlling variables. This will
contain monitoring of length, width, diameter and the volume of the product components.
7.9 Suggested Policy Regarding Rework
Majority of businesses has undergone rework in producing their products. Rework
is defined as correcting of defective, failed or non-conforming item, during or after
inspection. Rework may include all follow-on efforts such as disassembly, repair,
replacement and reassembly.
There are rules to be considered in producing a Zip Up Hospital Gown;
 Products that need rework must be put in a designated area with a label put on
them.
 Products that need to be rework must be checked accordingly.
 In replacing any product components, they should also be included in the record.
 These are the possible parts that may require rework:
a. Product components that were cut to be resized. Worker may fail to cut the
product parts according to their standard sizes and fail to fit to their co-product
components.
b. Product components that were applied with connecting materials. The
amount of connecting material used is not adequate enough to strengthen the
connection between parts.
c. Velcro Tapes.If the Velcro tapes do not attach with each other.
Figure 12. Qualification of Personnel in Charge of Quality Control
Control for quality of product outputs is designated to a personnel-in-charge
known as quality inspector. Quality inspector is responsible for assuring that
manufactured items are made and assembled correctly. He must have the ability and
patience of thoroughly examining material goods on the production line and either
approves or rejects an item based on its final quality. Any matured person may qualify as
long as he is fully knowledgeable in the attributes and variables of the product and knows
how to weigh decisions properly.
Failure to Comply Product Standard Quality
Product failure is the ultimate defining line in poor quality. It happens when a
certain product for in production fails to pass multiple examination in order to determine
the standard. The examination will be done by the general manager described in the job
specification as quality control.
 Rework monitoring sheet should be filled up by the general manager.

 Identify the defects or parts that needs to be rework.
 Identify the cause of defects;
o Human Errors
 Errors caused by negligence of the operator may cause penalty to
the organization.
 First warning. The general manager will warn and give a formal
written warning once confirmed of negligence.
 Second warning. The general manager will formally write a letter
and ask for penalty for the damaged raw materials.
 Last warning. The general manager will formally write a letter for
dismissal and the employee will get fired in the position.
o Machine Errors
 Identify which machine caused the error and the seriousness of the
damage.
 Request a technician if necessary.
o Environmental Factors
 Factors such as typhoons, fires and other natural phenomenon that
causes defect to the product. The organization will salvage what
can be save in order to lessen the cost of failures.
Products that failed twice in evaluation of standard or quality will be thrown out
in the recycle bin and make it into something useful. Products that can’t be recycled or
salvage will be thrown into garbage disposal bins and will be collected by the Municipal
Solid Waste Management.

Chapter VIII
MATERIAL HANDLING
Material handling is an activity that involves movement of material or products
within an organization from one place to another place or the flow of material or products
to vehicles or from vehicles. The activities are usually confined within the boundaries of
an organization. The movement of material from one organization to another is
categorized as transportation work, which is not part of material handling activities.
This is much more than the handling of inventory. It’s the movement, protection, storage
and control of materials and products throughout their lifespan of manufacturing,
warehousing, distribution, consumption, and disposal. It encompasses a range of
components to keep the supply chain running.
It is important to know the significance of material handling because it helps to optimize
work process and lead in reducing the total cost of the production. It also helps to
improve the overall production activity.
8.1 Principle of Material Handling
Material handling principles are essential to optimize processes, reduce costs and
reduce risk. It is critical for manufacturing organization to identify importance of material
handling principles, as the critical step in promoting the job improvement process.
Manual material handling significantly increases health hazard for the workers from
lower back injuries. However, the use of these principles should not be elucidating as a
substitute for experience and judgment.

 Planning Principle
-It is a statement of a desirable outcome from a chain of reasoning aimed at reaching, or a
list of appropriate matters to be considered in making, a planning decision.
All material handling should be the result of deliberation of plans, performance
objectives and functional specification of the proposed methods.
 Standardization Principle
-Material handling methods, equipment, controls and software must be standardized
within the limits that achieve global performance objectives without sacrificing
flexibility, modularity and production.
 Work Principle
-Material handling work should be minimized without sacrificing productivity or the
required level of operation. The measure of work is material flow (volume, weight, or
count per unit of time) multiplied by the distance moved
 Ergonomic Principle
- Human capabilities and limitations must be recognized to ensure safe and
effective operations. The material handling workplace and the equipment used to
assist in the work production must be ergonomically designed. Equipment should
be selected to eliminate repetitive and strenuous manual labor and which
effectively interacts with human operators.
-
 Unit Load Principle
-A unit load is one that can be stored or moved as a single entity at one time. Less effort
and work is required to collect and move many items one at a time. Unit loads shall be
appropriately sized and configured in a way which achieves the material flow and
inventory objectives at each stage in the supply chain.
 Space Utilization Principle
- Effective and efficient use of available space must be made. In work areas, cluttered and
unorganized spaces and blocked aisles should be eliminated.
 System Principle
-Material movement and storage activities must be fully integrated to form an operating
system that encompasses reception, inspection, storage, production, assembly, packaging,
unification, order selection, shipping, transportation, and claims handling. This principle
will help in organizing the flow and order of the materials throughout the system.
 Automation Principle
-Material handling operations should be mechanized and or automated where feasible to
improve operational efficiency, increase responsiveness, and improve consistency and
predictability. Pre- existing processes and methods should be simplified before any
efforts at installing mechanized or automated systems.

 Environmental Principle
- The environmental impact and energy consumption must be considered criteria when
selecting equipment for handling materials.
 Life-Cycle Cost Principle
-Life-cycle cost includes all the cash flows that will occur from the time the first dollar is
spent to plan or procure a new piece of equipment, or to put in place a new method, until
that method and/or equipment is totally replaced. Develop a comprehensive economic
analysis that takes into account the entire life cycle of material handling systems.
8.2 Measure Distance in Moving Materials by MHE
Table 8.1
Distance in Moving Materials
FROM TO DISTANCE (meter)
Storage Area Production Line 1.5- 2.5
Production Area Finish Products Storage 1.5-2.5
8.3 Recommended Material Handling Equipment
The following are the recommended material handling equipment in producing
Zip-Up Hospital Gown.
These trolleys are used also used to hold

bundle fabrics
Figure 13 Transport Equipment
Racks used for storing cutting Containers for Sewing Materials
bundles
Figure 14 Storage of Raw Materials and Finished Product

Chapter IX
MAINTENANCE FACILITIES
Maintenance involves functional checks, servicing, repairing or replacing of
necessary devices, equipment, machinery, building infrastructure and supporting utilities
in industrial, business, governmental and residential installations. . There are four types
of maintenance: breakdown maintenance, preventive maintenance, corrective
maintenance and maintenance prevention.
Breakdown maintenance means that people waits until equipment fails and repairs
it. Such a thing could be used when the equipment failure does not significantly affect the
operation or production or generate any significant loss other than repair cost.
Preventive maintenance is a routine for periodically inspecting with the goal of
noticing small problems and fixing them before major ones develop. The main goal of
preventive maintenance is for the equipment to make it from one planned service to the
next planned service without any failures caused by fatigue, neglect or normal wear.
Corrective maintenance is a task performed to identify, isolate and rectify fault so
that the failed equipment, machine or system can be restored to an operational condition
within the tolerances or limits established fo in in service operations.
Maintenance prevention indicates the design of new equipment. Weaknesses of
current machines are sufficiently studied and are incorporated before commissioning new
equipment.
In the production of Thor Power, preventive maintenance will be adopted since in
making the product doesn’t require large machineries which likely demand for huge
attention upon using. Whenever necessary, corrective actions may also be applied.
9.1 Maintenance of Production Lines
Maintenance is to ensure the maximum efficiency and availability of production
equipment, utilities and related facilities at optimal cost and under satisfactory conditions
of quality, safety and protection for the environment. Maintenance was considered as a
subordinate function, entailing an inevitable waste of money. Maintenance optimizes the
reliability of equipment and infrastructure; ensure that equipment and infrastructure are
always in good condition so as to secure the best possible availability for production.
Maintenance also ensures the operational safety of the employees, contribute finished
product quality and ensure environmental protection.
9.1.1 Preventive Maintenance
Preventive maintenance is the regularly performed on a piece of equipment to
lessen the likelihood of failing. It is performed while the equipment is still working so
that it does not break down unexpectedly. An ideal preventive maintenance program
would prevent all equipment failure before it occurs. The goal of a successful preventive
maintenance program is to establish consistent practices designed to improve the
performance and safety of the equipment. A planned maintenance of equipment will help
improve equipment life and avoid any unplanned maintenance activity.

Table 9.1
Maintenance of Tools and Equipment
Equipment/Tools Recommended Maintenance Frequency

Maintenance Technique
Sewing Machine Check Functionality Before and After Use

Storage Cabinets Maintain Cleanliness Before and After Use
Trash Can Maintain Cleanliness Before and After Use
LED Lamps Check Functionality Before and After Use
Computer Set Check Functionality Before and After Use
Printer Check Functionality Before and After Use
Telephone Check Functionality Before and After Use
Time Clock Check Functionality Before and After Use
Desk Maintain Cleanliness Before and After Use
Locker Cabinets Maintain Cleanliness Before and After Use
Scissors Check Functionality Before and After Use
Fire Extinguisher Check Functionality Before and After Use
First Aid Kit Check Functionality Before and After Use
Gloves Check Functionality Before and After Use
Sewing Pins Check Functionality Before and After Use
Table 9.2
Maintenance Card
9.1.2 Corrective Maintenance
Corrective Maintenance is a maintenance task performed to identify, isolate, and
directly, and rectify a fault so that failed equipment, machine, or system can be restored
to an operational condition. It is a maintenance work which involves repair or
replacement of components which have failed or broken down.
Corrective maintenance is a maintenance task or operation done in order to
identify, isolate or separate and rectify a particular fault. This is performed in order to
restore the failed machine, equipment or system to an operational condition. It is a form
of maintenance that is performed after a fault or problem emerges in the system, with the
goal of restoring operability.

Table 9.3
Corrective Maintenance Card
Table 9.4
Corrective Maintenance Activities
Tools and Equipment Corrective Maintenance Activities
Sewing Machine Clean
LED Lamp Clean
Computer Set Clean
Printer Clean
Telephone Clean
9.1.3 Maintenance for Material Handling Equipment
A wide variety of material handling equipment is in the market, some
equipment is for general purpose use and others are of special purposes. The
best equipment will be one which permits smooth and continuous flow
involves less accidents, reduces production cycle time, promotes better
working conditions, incurs less fatigue to the operators and brings down the
total material handling tools.
Table 9.5
Maintenance for Material Handling Equipment
Material Handling Recommended Frequency of
Equipment Maintenance Technique Maintenance
Transport Equipment Clean Every other day
Storage of Raw Clean Every other day
Materials
Product Display Clean Every other day

9.1.4 Total Preventive Maintenance Checklist
Total Preventive maintenance is a system of maintaining and improving the
integrity of production and quality systems through the machines, equipment, processes
and employees that add business value to an organization. TPM focuses on keeping all
equipment in top working condition to avoid breakdown and delays in manufacturing
processes.
Table 9.6
Total Preventive Maintenance Checklist

9.2 Maintenance for Non-Production Facilities
Non production facilities refer to the facilities that do not directly contribute to the
manufacturing of the product. Even if it does not directly contribute to the manufacturing
of the product, it is necessary to ensure that those facilities are in good condition and can
be use when it is needed. The non- production facilities include the buildings and
electrical systems.
9.2.1 Building
The very important factor on the manufacturing process is a place to produce the product.
Building is a must in every business to start up your production. However, buildings will
rapidly decay and degrade when building maintenance has been neglected. Thus,
knowing the importance of it, it should be also maintained just like the equipment and
tools in the production to have a smooth flow of process and have a safe and sound
working environment for the employees and workers. The main goal is to manage a
building and its grounds as well as customize needs for facilities.
The possible areas of inspection when conducting and making a building maintenance are
shown as follows:
 Check for dust control
Since the product includes electronic circuits, checking the dust control should be done
every day. To have a dust free environment, the employee and workers should observe
proper cleaning routines before and after the work since a clean environment can affect
the productivity of a worker.

 Check for the roofing
Check the roof system of the building. Since the product have an electronic component,
good roofing is highly needed. Personnel in charge should see for possible leaks if there
is a rain. Checking should be done quarterly.
Table 9.8
Building Maintenance Card

9.2.3 Electrical System
All electrical systems require maintenance in addition to non- scheduled
maintenance caused by unpredictable events such as storms, accidents and equipment
failure. The intent of maintenance is to keep the system operating at an acceptable level
of service away from any possible danger. Certain maintenance activities are common to
all systems regardless of type. These activities should always be performed on the cycle
applicable for the system.
The following are the wiring and connection maintenance:
 Clean conductors, terminals and connectors of all corrosion
 Check the equipment grounding system including conduit end bushing
connections, bonds, equipment grounding conductors, enclosure grounding
connections and pole grounding connections.
 Check grounding installations for damage and repair if necessary.
 Tighten terminals and connectors including breakers, transformers and contactor
connectors.
 Check the grounding electrode and associated connections.
 Replace deteriorated or missing conductor and terminal identification markings.

Table 9.9
Electrical System Maintenance Card

9.3 Personnel In-Charge of Maintenance Work
Maintenance personnel must perform preventive and inspection maintenance
which requires dismantling and assembling equipment, electrical components and
devices. They are responsible for inspecting, maintaining and repairing devices, machines
and equipment. They should ensure that the building structures, fixtures and the other
related company services are operating smoothly and efficiently.
Qualification of Maintenance Personnel
 Proven maintenance experience for 2 or more years
 Skilled in the use of hand and power tools.
 Eye for detail
 Strong time management skills.
 Male/Female
 Ability to maintain focus while working individually.

Table 9.10
Summary of Schedules for Preventive Maintenance
Summary of Schedules for Preventive Maintenance
Key Areas Particulars Schedules/ Maintenance
Frequency
Sewing machine Before use
Production Tools and Led lamps Before use
Equipment
Scissor Before use
Gloves Before use
Sewing pins Before use
Transport Equipment Once a week/ Monday
Material Handling Storage of Raw Materials Once a week/ Monday
Equipment
Product Display Once a week/ Monday
Quarterly/ First Friday of
March, June, September

Roofs
and December
Building
Quarterly/ First Saturday
of March, June, September

Dust control
and December
Wirings
Switches Once a Year/ First Week
of December
Electrical System Distribution Box
Socket
Light Fittings
Chapter X
SAFETY AND HEALTH
Health and safety are critical factors for all companies to enhance both employee
and employer’s wellness. It is the job and moral obligation of the company to ensure the
safety of its employees. Each employee is entitled to adequate safety and health care
provided by their employers.
Safety is one of the most serious issues and it is entirely the responsibility of the
business owners to ensure that their staff work in a safe atmosphere. On a regular basis,
there should be an appropriate discussion regarding the job and culture of the office, so
that the management is aware of how they an simplify these things for the employees,
comfort. The management should spend their time to ponder and strategize the things that
what safety precautions are essential in the organization to assure that the workers are
safe enough for all the time. This aids in increasing productivity and quality of the
product.
10.1 Measures against Occurrences of Accidents in the Plant
Accidents are unforeseen events that cause injuries, illness, death, and property
and/or productivity losses. While there is no way to totally avoid accidents, certain
strategies, preparations, and activities can be implemented to limit their occurrence.
Employees must be accountable for their own safety. Participation in health and
safety seminars makes a significant contribution to reducing or preventing work-related
accidents.
The following are accident prevention strategies organized according to potential
cause.
10.1.1 Electrical Safety
Electricity is required for just about all types of activities in most manufacturing
and other facilities. While electricity has improved the world in many ways, it is still
important to remember that it can be very dangerous. Electricity can kill or severely
injure people and cause damage to property. It has long been recognized as a serious
workplace hazard.
Electrical safety is a set of organizational and technical procedures designed to
protect workers from the damaging and deadly consequences of electric current, arcing,
electromagnetic fields, and static electricity.
The following are some of the basic for electrical safety:
 Extension cords should not be used in the office areas. Generally, extension cords
should be limited to use by maintenance personnel.
 Any electrical equipment causing shocks or high leakage potential must be tagged
with a Danger tag or equivalent.
 Plug power equipment into wall receptacles with power switches in the OFF
position.
 Unplug electrical equipment by grasping the plug and pulling. Do not pull or jerk
the cord to unplug the equipment.
 Check for frayed, cracked, or exposed wiring on equipment cords.

 Check for defective cords clamps at locations where the power cord enters the
equipment or the attachment plug.
10.1.2 Machine Safety
Machines can help improve production efficiency in the workplace but, their
moving parts, sharp edges and hot surfaces have the potential to cause severe workplace
injuries. Below are some basic for machine safety:
 Do not use the machine if safeguards are unauthorized or damaged.
 Lubricate machine parts wherever possible withour removing the safeguard.
 Always wear the Proper Protective Clothing while working on a machine.
 All accessible parts of the machine should have no sharp edges, rough surfaces,
protruding parts, etc., if so, do not use the equipment.
 Report problems with machine safeguards to your supervisor immediately.
10.1.3 Tools Safety
The use of safe tools contribute to a safer and more efficient work environment.
Misusing tools is not only harmful, it also demonstrates a lack of understanding of tool
safety and a disregard for others around you. Below are some safety practices to avoid
accidents using tools:
 Inspect the tools regularly
 Always wear appropriate personal protective equipment
 Never use a tool for a different purpose than it was intended
 Clean and return the tool to its proper storage place after using
 Don’t work with greasy or oily hands
10.2 Personal Protective Equipment
Worker’s safety is a primary concern in a workplace. Personal Protective
Equipment is worn to minimize exposure to hazards that cause serious workplace injuries
and illnesses. Since the employees ofthe Zippy Tend company are mostly doing
stationaryworkwiththeir handsdoingthe work, at all cost we must protect their hands.
Thefollowing PPEwillbehandeddowntotheemployeesupon theirrequest.
Table 10.1
Personal Protective Equipment
PPE Image Function
Provides extra comfort for
Skin tight gloves the cutters and sewers, also
protect their hands from
pain in long hours of
working.
Measures for Securing the Plant against the Bad Elements of Society
Physical security is the protection of personnel, hardware, software, networks and
data from physical actions and events that could cause serious loss or damage to an
enterprise, agency or institution. Measures for securing the plants against bad elements of
society include the following:
1. Deterrence
It is a strategy intended to deter an adversary from taking an action not yet
started by means of threat of reprisal, or to prevent them from doing something
that another state desires.
2. Human Response
Security guards who is in charge in securing safety for all prevent risks
and deter crime, watch out for looming danger, and report any crime they may
encounter. Their presence can provide peace of mind and a sense of security to
the business owner, employees and customers.
3. Detection
It is the act of noticing or discovering something. The use of detection
system such as alarms is one of the preventive measures that greatly help in the
response or trigger of fires and other emergencies. It monitors also a network or
systems for malicious activity or policy violations.

4. Vehicles
Any vehicles that will enter and will leave the company premise should be
carefully inspect and check to avoid activities such as smuggling and others. This
activity should be carefully responded by the security guards.
Fire Safety
Fire safety information saves lives. It can teach how to recognize fire
hazards, conduct fire safety risk assessment, prevent a workplace fire, and
respond if a fire occurs. Passage ways where emergency fire exits must be free at
all times.
 Anyone should be aware of the location for fire exits and fire
extinguishers.
 Fire extinguishers are intended for fighting fires, thus, it should be used
purposively.
 Use appropriate safety device
Surveillance Camera
Surveillance camera in the workplace protects both the company and its
employees. It plays a crucial role within the daily running of the business. It is also
recommended to have it in order to monitor all the incoming and outgoing raw materials,
vehicle and people. Aside from being installed to protect against potential theft or
criminal activity, it plays an important role within the productivity levels of employees.
10.3 Recommended Policies Regarding Health of Worker
The health of workers is an essential prerequisite for productivity and economic
development. It is one of the main concerns of the company. In order to secure the health
of the workers, the company must implement safety measures strictly.
Health risks at the workplace, such as heat, noise, dust, hazardous chemicals,
unsafe machines and psychological stress, cause occupational diseases and can aggravate
other health problems. In this regard, the workers should be provided with personal
protective equipment (PPE) during working hours and always remind the workers about
the safety instructions. Therefore, restoring and maintaining working capacity is an
important function of the health services. In addition, all workers and particularly those in
high-risk occupations need health services to assess and reduce exposure to occupational
risks as well as detection of occupational and work related diseases and injuries.
10.4 Medical and Dental Services
Medical and dental services take care of protecting and promoting and
maintaining the health and well- being of the workers inside the company. The employer
shall employ a part time occupational health physician and a part time dentist who will
stay at least 4 hours in every three days alternately with each other to provide health care
services to the workers. These health care personnel will have to stay inside the
production premises in order for them to be accessed easily. A full-time nurse will also be
employed and a clinic will be provided for these health care personnel.
The company shall provide first aid kits and medicines easily accessible by the
employees in accordance to safety employee benefit regulations as prescribed by the
Department of Labor and Employment throughout the workplace.
Employees can receive dental insurance from the company’s dental provider.
After twenty-four (24) months of employment, they can have an insurance plan that
require a low monthly premium and other co-payment, but allows the freedom to choose
their dentists. If a family member is added by the employee, they will be responsible of
the remaining costs prior to the agreement.

Chapter XI
PLANT LAYOUT
Plant lay out refers to the physical arrangement of the facilities in the whole area.
It is important to consider the planning of the plant in starting a business. This is to
ensure the efficiency and effectiveness of attaining the success of the business. Plant
layout is also widely defined as the plan of or act of planning an optimum arrangement of
facilities including personnel, operating equipment, storage space, materials handling
equipment and all other supporting services along with the design of the best structure to
accommodate these facilities. These things should be properly arranged accordingly in
order to have the quickest flow of material at the lowest cost.
The objectives of a good plant layout are to provide comfort to the workers and
catering to worker‟s taste and liking; to give good and improved working conditions; to
minimize delays in production and to make efficient use of the space that is available;
and to have better control over the production cycle by having greater flexibility for
changes in the design of the product.
11.1 Space Requirements
An efficient plant layout is one of the instruments in achieving proper and
efficient utilization for available space and to ensure that work proceed form on point to
another point without any delays. Space requirements are significant for certain machines
and equipment and others in order to operate efficiently and effectively. In manufacturing
Zip-up Gown, the sufficient and adequate spaces for the working area play a big role for
having productive production lines.

11.2 Non-Production Functional Area
Non-production Functional Area refers to the areas where there is no direct
contribution or contact to the production processes. These areas are classified into two
different kinds, namely: Auxiliary Service Area and Administrative Area.
Auxiliary Service Area
1. Display Area
It is an area used for displaying the finish product. It is where the
customers can view the product displayed.
2. Parking Area
It is an empty area that is intended for parking vehicles. This is the space
provided for the vehicles used in transporting goods-raw materials or finished
products as well as accommodating different type of vehicles for employee’s and
visitors’ cars.
Administrative Area
1. Administrative Office
Administrative office is where the administrative officers stay and execute
their functions. This includes the General Officer/ Accountant and Human
Resource Personnel.
2. Comfort Room
There will be five comfort rooms to be installed – two for the production
area, two for the administrative office and one for display areaintended for
customer. This is the room intended for sanitary purposes. It should be maintained
clean adequately.
Production Functional Area
These areas is directly contributes to the manufacturing of the product.
1. Storage Room
This is the area intended for storing raw materials used in the production.
This must be kept clean and organized in order to locate the materials easily and
avoid stress.
2. Production Area
This is the area where the Zip-up Gown are made from inception to its final form.
This must be designed properly in order to keep the production line effective and efficient
in producing good quality products. The table for Quality Control Personnel is located in
the area to have an ease of inspection.
11. 3 Space Relationship Diagram
Space relationship diagram shows the arrangement of every department and its
relationship on every area. The closeness codes will be used and place in every
department areas to acquire good flow of every transaction and to know the importance
of each relationships.
Table 11.1
Closeness Codes
CODES WEIGHT GAUGES SYMBOL DEFINITION
A 4 Absolutely necessary
E 3 Especially Important
I 2 Important
O 1 Ordinary
U 0 Unimportant
X -1 Closeness Undesirable
Activity Space Relationship Diagram for Auxiliary Area
Figure15 Closeness Relationships in Auxiliary Area
Activity Relationship Worksheet for the Auxiliary Area
The worksheet interprets the activity relationship diagram and becomes the basic
data for the dimensionless block diagram.
Table 11.2
Degree of Closeness for Auxiliary Area
Degree of Closeness
Department
A E I O U X
1 Display Area 4
2 3
2 Parking Lot
1 3 4
3 Fire Exit
1, 2 4
4 Drainage
2 3 1
Dimension less Block Diagram for Auxiliary Area
The Dimensionless Block Diagram is the first attempt and the result of the
Activity Relationship Diagram and worksheet.
Figure 16 Dimensionless Block Diagram for Auxiliary Area
Activity Space Relationship Diagram for Administrative Area
Figure 17 Activity Relationships in Administrative Area

Activity Relationship Worksheet for the Administrative Area
Table 11.3
Degree of Closeness in Administrative Area
Department Degree of Closeness

A E I O U X
1 General 2, 3
Manager’s
Office
2 Logistics and 1, 3
HR
Supervisor’s
Office
3 Comfort Room 1,2
Figure 18 Dimensionless Block Diagram for Administrative Area

Activity Relationship Worksheet for the Production Area
Figure 19 Activity Relationships in Production Area
Activity Relationship Worksheet for the Production Area
Table 11.4
Degree of Closeness in Production Area
Department Degree of Closeness
A E I O U X
1 Production
Supervisor’s 2,4 3
Office
2 Production
Staff Area 3, 4
3 Storage Area 1
4
4 Comfort Room
3
Figure 20 Dimensionless Block Diagram for Production Area
11.4 Space Allocation
Space allocation refers to the division of the plant in order to allocate the different
departments and sections. Materials, machines, equipment and offices should be properly
allocated for the smooth flow of production. Space allocation includes both production
and non-production area.

11.4.1 Area Allocation for Non- Production Functional Area
Table 11.5
Area Allocation for Display Area
Display Area
Item Dimension Area (cm2) Quantit Total Area
y (cm2)
Heavy Duty 35.6cm x 104cm 3,702.40 cm2 1 5,553.60 cm2
Rack Clothes
Total Space 5,553.60 cm2
Percent Allowance 50%
Space Allocation 8,330.40 cm2
Table 11.6
Area Allocation for Administrative Office
Administrative Office
y (cm2)
Office Desk 75cm x 143.60cm 10,770 cm2 1 10,770 cm2
Table 75cm x 115cm 8,625 cm2 1 8,625 cm2
Chair 48cm x 48cm 9,216 cm2 4 36,864 cm2
Filing Cabinet 45cm x 45 xm 2,025 cm2 1 2,025 cm2

Total Space 58,284 cm2
Space Allocation 116,568 cm2
11.4.2 Area Allocation for Production Functional Area
Table 11.7
Area Allocation for Production Area
Production Area
y (cm2)
Sewing 4.75cm x 77cm 14,630 cm2 4 58,520 cm2
Machines
Chairs 30cm x 30cm 28,800 cm2 4 115,200 cm2
Total Space 173,720 cm2
Space Allocation 347,440 cm2

Table 11.8
Area Allocation for Storage Room (R.M.)
Storage Room
y (cm2)
Wooden 30.48cm x 1,858.07 cm2 1 1,858.07 cm2
Cabinet 60.96cm
Table 11.9
Area Allocation for Storage Room (F.G.)
Storage Room
y (cm2)
Open Cabinet 30.48cm x 1,858.07 cm2 1 1,858.07 cm2
60.96cm

Table 11.10
Summary of Space Allocation Per Area
Summary of Space Allocation Per Area
Non-Productive Functional Productive Functional

Area Area
Auxiliary Total Administrative Total Area Production Area Total Area (cm2)
Service Area Area (cm2)
Area (cm2)
Display 8,330.40 Administrative 116,568 Production Area 347,440 cm2
Area Office
cm2 cm2 Storage Room 2,787.105 cm2
(R.M.)
Storage Room 2,787.105 cm2
(F.G.)
11.5 Total Area of the Sections of the Plant
This section presents the total space allocated in the entire plant layout. It includes
the non-production area and the production area. The factory has a total of 48.64 square
meters beside Isidro C. Kintanar Memorial Hospital.

11.6 Final Layout
Figure 21 Plant Layout

11.7 Plant Location
Figure 22 Plant Location

11.8 Percentage of Lot Occupancy
The proposed plant will make use of 18.44 square meters of the leased
commercial building. While the total area is 48.64 square meters.
Total AreaOccupied
Percent Lot Occupancy= x 100
Total Area of the Lot
18.44 sq . m.
= 48.64 sq . m. x 100
Percent Lot Occupancy = 37.91%
Total Area Occupied

Percent Occupancy of Non Productive Area= x 100
11.92 sq .m .
= x 100
48.64 sq . m.
Percent Occupancy of Non-Productive Area = 24.51%
Total Area Occupied

Percent Occupancy of Productive Area= x 100
6.51 sq .m .
= x 100
48.64 sq . m.
Percent Occupancy of Productive Area = 13.38%

Chapter XII
COST OF DEVELOPMENT
In business, especially, there is always space for development. The cost of
development refers to the expenses incurred throughout the project's implementation. The
cost of development comprises the expense of constructing a new facility, offering a new
product or service, expanding territory, and conducting business with a new client class.
12.1 Cost of Lease
The Zip up hospital gown company production line and shop are located at the
commercial building beside Isidro C Kintanar Memorial Hospital, the target market. The
company will take up 2 spaces for lease. Every room for lease has a value of Php 5, 000
per month, the total lease or renting expense is Php 10,000.
12.2 Cost of Structure
Fortunately, the building is ready for the operation needed for the production of
the Zip-up hospital shirt. The building has been renovated due to minor damages of
typhoon Odette and it has a wide-open space in the front for parking area.
12.3 Cost of Open Space
The open space for parking is within the cost of building lease. The proponents
don’t have to build parking spaces.
12.4 Cost of Tools and Equipment
Below are the tools and equipment needed to operate and optimize the production
of Zip-up hospital gown.

12.4.1 Workstation tools and Equipment
Below are the lists of tools and equipment in producing Zip-up hospital gown at
the workstation.
Table 12.1
Cost of Machine, Tools and Equipment
WORKSTATION
MaterialandEquipmen Quantity Price (Php) Total Price

t (Php)
JukiHighspeed 4 20,000 80, 000
SewingmachineDDL-
8700
Needle set 4 220 880
Tailor 4 175 700

andseamstressScissor
Tapemeasure 4 10 40
WhiteCardboard 100 12 120
Cliptablelamp 4 120 480
Razorblades 40 2.8 112
SewingPinand 16 124 1,984

cushion
Jukioil 2 335 670
IzumipedalTrashBin 4 550 2,200
Electric Stand fan 2 1,550 3,100
360- 4 999 3,996

degreeadjustablechair
TOTAL Php 94, 282
12.4.2 Administrative Area
Office Tools and Equipment are significant especially during accomplishing
orders and completing important transactions. They also aid in making reports and paper
documenting.
Table 12.2
Cost of Office Tools and Equipment
ADMINISTRATIVE OFFICE
MaterialandEquipment Quantity Price(Php) Total

Price(Php)
OfficeTable 1 5,349 5, 349
Office Chair 3 827 2,481
FilingCabinet 1 7,875 7,875
ComputerSet 1 10,499 10, 499
EpsonPrinter 1 9,152.49 9,152.49
TimeClockfingerprintattendance 1 1,554 1,554
PLDT prepaidlandline 1 2,778.10 2,778.10
IzumipedalTrash Bin 1 550 550
Hanabishi Water Dispenser 1 3001 3001
TOTAL Php 43, 239.1

12.4.3 Raw Materials and Finished Product Storage
Table 12.3
Cost of Raw materials and Finished Product Storage
RAWMATERIALSANDFINISHEDPRODUCTSTORAGE
MaterialandEquipmen Quantity Price(Php) Total Price(Php)

t
Wooden cabinet 2 5,500 11,000
TOTAL Php11,000
12.4.4 Store / Display Area
Table 12.4
Cost of Furnitures and Fixtures in Store / Display Area
STORE/ DISPLAY AREA
MaterialandEquipmen Quantity Price(Php) TotalPrice

t (Php)
ReceptionDesk 1 23,000 23, 000
Cash register 1 8,219.24 8,219.24
360 degrees chair 1 827 1,654
Stainless steel display 2 2, 662 5,324

rack
TOTAL Php 38, 197.24
12.4.5 Locker Area
Table 12.5
Cost of Furniture in Locker Area
LOCKER AREA
Material Quantity Price(Php) TotalPrice

andEquipment (Php)
Locker 2 9,500 9, 500
Roomcabinet
TOTAL Php 9, 500
12.4.6 Miscellaneous Supplies
These are supplies that also help and support the production of Zip-up hospital gown.
Table 12.6
Cost of Office Supplies
MISCELLANEOUSSUPPLIES
Material Quantity Price(Php) TotalPrice

andEquipment
(Php)
Bondpaper 2reams 155 310
Ballpen 2boxes 200 400
Gloves 50 30 1,500
Firstaidkit 1 1,350 1,350

FireExtinguisher 2 6,275 12, 550
Razor Blades 10 20 200
Official 2 20 40
receipts
LED lights 14 185 2,590
Bathroom Tissue 1 660 660
Soap/ sanitizer/ethyl 1 139 139

alcohol
TOTAL Php 19, 739
12.5 Total Cost of Development
Total Cost of Development= Cost of Land + Cost of Structure + Cost of Open Space
+Tools and Equipment + Cost of Furniture and Fixtures + Cost of Office Tools and
Equipment + Cost of Office Supplies + Cost of other Supplies
Total Cost of Development =Php 10,000 + Php 94, 282+ Php 43, 239.1+Php11,000+
Php 38, 197.24+ Php 9, 500+ Php 19, 739
Total Cost of Development = Php 225, 957.34
The total cost of development is Php 225, 957.34 for the first year of production.
Chapter XIII
ORGANIZATIONAL STRUCTURE OF THE PLANT
13.1 Organizational Structure
An organizational chart is a diagram that shows the structure of an organization
and the relationships and relative ranks of its positions or jobs. It outlines the roles,
responsibilities and relationships between the organization’s staff members. It guides the
employees to know their rights and responsibilities.
Organizational chart graphically illustrates the concept known as chain of
commands and shows the flow of authority, responsibility and communication. The
importance of using this is felt due to the fact that a business organization needs to
provide guidance and clarity on various organizational and human resource issues.
Zippy Tend Company uses a flat type of organizational chart which directly
illustrates relations between people within an organization, thus bringing the top
management in direct contact with the production workers and shopkeeper. When an
organization chart grows too large it can be split into smaller charts for separate
departments within the organization. It is of great support to create and define the
organizational structure, so that the business objectives may be accomplished accordingly
and yet successfully.
This is vital tool for top management to use when planning the staff required
running the company efficiently and cost - effectively.
The organizational chart of Zip Up Hospital Gown is shown below:

Figure 23 Organizational Chart
13.2 Functions of Organizational Positions
13.2.1 General Manager
General Manager is responsible for running the company, he or she has the
biggest responsibilities of all the department manpower.
13.2.2 Shopkeeper
The shopkeeper ensures that the store is kept clean and organized. He or she also
keeps a record of sales and restocks the store accordingly and mediate any confrontation
between staffs and clients. Also responsible for purchases and orders for the raw
materials.
13.2.3 Tailors or Seamstress
Alters or repair, construct, and labels customers’ garments. They also clean work
area, machines and equipment after use.

Chapter XIV
CONCLUSIONS AND RECOMMENDATIONS
14.1 Conclusion
Zip Up Hospital Gown is beneficial for those patients in the hospital. It is ideal to
be introduced to the society as it is an innovation that came from the idea of having
hospital gowns to be added with features like Velcro tapes on each side for a convenient
way of changing patients’ clothes while he/she has intravenous fluid connected to his/ her
body. This product allows the wearer to change clothing without any hassle and
eliminating the risk of worsening the patients’ current health condition. The researchers
concluded that with its unique and classic design, improved features, quality and one of a
kind researcher’s idea, Zip Up Hospital Gown will be marked high to market and will
meet customer’s demand. Having and maintaining good quality products of Zip Up
Hospital Gown, can contribute to the trending in the market and be beneficial to the user
in the industry.
14.2 Recommendation
Based on the study done by the researchers, the following recommendations are
raised:
 Expand the company through advertising and promoting on other
hospitals.
 Extend the target market to areas outside the present business target’s
current stage.
 Diversify your product mix to offer a greater range of options.
Medium
Table 14.1
Medium Measurement(inches)
Parts Measurements
Length 46"
Sweep 26"
Sleeve 9"
Large Size
Table 14.2
Large Measurement(inches)
Parts Measurements
Length 47"
Sweep 27"
Sleeve 10"
Extra Large
Table 14.3
Extra Large Measurement(inches)
Parts Measurements
Length 48"
Sweep 28"
Sleeve 11"
The sizes that are shown above such as medium, large and extra-large are collected
from Gorgeous Hospital Gown Website.

 Improve the product and service in all feasible ways to increase
commercial potential.This feature will be added soon in the product.
Back ties
Velcro Tape for

extra protection
Figure 24. Front and Back View Added features and variant
Appendices
Zip-up Hospital Gown Survey Questionnaire
The purpose of this questionnaire is to determine the potential market of the
planned product the Zip-up Hospital Gown. A hospital gown which has an opening from
shoulder hem to the bottom hem of the gown on both sides in order to provide ease in
changing gowns or clothes by only sliding the head while on intravenous injections.
The questions are intended only for Isidro C Kintanar Memorial Hospital.
Name of the respondent (optional):
Position/ Affiliation:
I. Existing product
1. Is there an available patient gowns for minimal risk situations provided by the
hospital? If no, please proceed to number 3 part I.
 Yes
 No
 Yes, but upon patient request.
 Others, please specify
2. If yes, how many times one patient gown can be reuse and washed before
disposal?
 1 time only
 2 times
 3 times
3. Is there a standard guideline for patient gowns practiced in the hospital?
(Example, materials used, sizes, color coding, if yes, preferably attached with
documents)
 Yes
 No
4. How many patients can the hospital cater at this time?
II. Introduction of the Product
1. If there is an available patient gown in the market, would you like to consider
procuring it for the hospital?
 Yes
 No
2. Will you be interested in procuring our Zip-up Hospital gown which is designed
for patients with intravenous injection to aid in patient changing clothes?
 Yes
 No
3. What market price would you be interested to procure our product?

 Php 100 -131
 Php 131 - 150
 Php 151 - 170
 Php 170 and above
4. What will be the preferences in procuring our Zip-up Hospital Shirt? May check
more than one.
 Quality
 Functionality
 Aesthetics
 Price
5. In what way would you like to for us to produce the product?

 Contractual
 Made to order
 Constant supply
6. In what way would you like to contact the producer of the product?
 Email
 Text message and call
 Social media
Curriculum vitae
PETERJADEM.TANGPOS
Lugot,Langkas,Dalaguete,Cebu
Email:
peterjademoncedatangpos@
gmail.comMobileNo.
09295393713
PERSONALDATA
Age: 21
Birthdate: June29,2000
Birthplace: Langkas, DalagueteCebu
CivilStatus: Single
Sex: Male
Height: 161cm
Weight: 60 kg
Citizenship: Filipino
Father’sName:
Tirso Tangpos
Sr.Mother’sName:
Susana
TangposSiblings:
GenoTangpos
Cl
ar
a
M
ae
Ta
ng
po
sJ
ud
e
Ni
no
Ta
ng
po
s
EDUCATIONALBACKGROUND
Intermediate: LangkasElementarySchool
March2012
Secondary: UniversityoftheVisayas-DalagueteCampus
March2019
Tertiary: CebuTechnologicalUniversity-ArgaoCampus
BachelorOfScienceinIndustri
alEngineering2018-Present
ALLANJ.CENTINO
Balud,Dalaguete,Cebu
Email:
allan.centino@
ctu.edu.phMobi
leNo.09686506
096
PERSONALDATA
Age: 24
Birthdate: May31,1997
Birthplace: Caliongan,DalagueteCebu
CivilStatus: Single
Sex: Male
Height: 163cm
Weight: 50 kg
Father’sName:
SaturninoCentinoMoth
er’sName:
CenonaCentinoSiblings
:
AlbertoJ.Centino
Alv
inoJ
.Ce
ntin
oAl
exa
nde
r J.
Cen
tino
Alo
na
J.
Cen
tino
An
nari
zaJ.
Cen
tino
Intermediate: CalionganElementarySchool
March2012
Secondary: Dalaguete
National High
SchoolMarch2
019
CHARISSEJEAND.PELOMINO
Mantalongon,Dalaguete,Cebu
Email:charissejean.pelom
ino@ctu.edu.ph.MobileN
o.09511933251
PERSONALDATA
Age: 22
Birthdate: November6,1999
Birthplace: Mantalongon,Dalaguete,Cebu
CivilStatus: Single
Sex: Female
Height: 143cm
Weight: 38 kg
Father’sName: Jose
Edwin G.
PelominoMother’sName:
MarifieD.PelominoSiblings:
CharlesMarvinPelomino
Charit
y Grace
Pelomi
noAlex
isRaeni
erPelo
minoJo
shuaNi
ñoPelo
minoY
hancee
Pelomi
no
Intermediate:
MantalongonEl
ementaryScho
olMarch2012
Secondary: MantalongonNational HighSchool

April2018
ALMA JOY E. ALVIOLA

Canduran, Lamacan, Argao, Cebu
Email:
almajoy.alviola@ctu.edu.
ph.
MobileNo.09925101976
PERSONALDATA
Age: 27
Birthdate: March 1, 1995
Birthplace: Canduran, Lamacan, Argao, Cebu
CivilStatus: Single
Sex: Female
Height: 5’2 inches
Weight: 48 kg
Father’sName: Jose R.
Alviola
Mother’sName: Alicia
E. Alviola
Siblings:
JeijuAlexte Egos
Aljie Mae A.
Amamangpang
Jose Alexandre E.
Alviola
Intermediate: Tulic
Elementary
School
2007-2008
Secondary: The Sisters of Mary School Girlstown

2011-2012
Tertiary: Cebu Technological University-ArgaoCampus
Bachelor Of Science in Industrial
Engineering
2012-Present

CAPSTONE2022

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ZIP-UP HOSPITAL GOWN

Industrial Engineering Department

Cebu Technological University

ALVIOLA, ALMA JOY

PELOMINO, CHARISSE JEAN D.

TANGPOS, PETER JADE M.

This Capstone Project entitled “ZIP UP HOSPITAL GOWN” prepared

Bachelor of Science in Industrial Engineering has been examined and approved

for oral examination.

THESIS ADVISORY COMMITTEE

ENGR. VEVENCIO ALONSO JR.

APPROVED by the Committee on Oral Examination with a grade of:

THE PANEL OF EXAMINER

ENGR. MARY ELLEN C. CAMARILLO

ENGR. JECEL T. CARA-AT ENGR. RHEA P. KINTANAR

ACCEPTED AND APPPROVED in partial fulfillment of the requirements fort the

Date of Oral Examination: June 18, 2022

HELMERM. BAṄADOS, Ph.D.

changing clothes especially in intravenous injection. People admitted to public hospital

discomfort of the patient when changing clothing in admission and confinement in a

slid his or her head when changing clothes.

Our deepest gratitude is extended to all those who have help,

supported, and contributed a lot for the success of this study.

Our sincere thanks to our instructor Engineer Liez C. Cabrera-

Gonzales in this subject IE-PC 4117 IE Capstone Project for her

continuous inspiration and encouragement for the researchers’ personal

inspires us to make this research possible.

To our Family and friends, who gives us support in terms of

financial needs and for always being there to encourage us whenever we

To ourselves, who believe in ourselves in order to accomplish the study.

gives us intelligence to make this research successful and enlightened our

way in times of hardships and discouragement.

The accomplishments and success in this subject wouldn’t be

finish this research. This research study is sincerely dedicated to our

beloved and active instructor in this subject IE-PC4117 IE Capstone Project

in the fulfillment of the subject learnings and application of deep

knowledge in the field research and study.

The researchers also dedicate this study to the patients at any

hospital who are still recovering and also to their families.

The researchers also dedicate this study to all the instructors,

faculties and staff of Cebu Technological University Argao Campus

(Industrial Engineering Department) for they contributed in the outcomes

learnings and knowledgeable subject.

1.5 Approximate Weight of the Product 5

CHAPTER III: MATERIAL REQUIREMENT 36

6.18.1 National Health Insurance Program 72

11.4.1 Area Allocation for Non- Production Functional Area 126

Figure 4 Front View 4

Table 2.4 Manufacturing Lead Time 15

Hospital gowns are the sanitary clothing worn by patients. It is designed to be

and is not common to use.

attract its potential customers.

1.1 Features of the Product

Zip Up Hospital Gown offers the following features:

gown collapsible from left and right side

and calm feeling.

1.2 Physical Characteristic of the Product

1.3 Uses of the Product

experience a convenient andcomfortable way in changing the patient’s clothes without

1.4 Pictorial view of the Product

Figure 1 Assembly Drawing of the Product

1.4.1 Exploded Drawing

Figure 2 Exploded Drawing of the Product

1.4.2 Orthographic Drawing