CHAPTER III

PRODUCTION OR OPERATIONS PLAN

This chapter tackles the different parts in making a Production or Operational

Plan. This chapter includes Technical Production Description, Production or Operation

Process, Labor Requirement, Production Schedule, Machinery or Equipment

Requirements, Materials and Supplies Requirement, Plant or Facility Location, Utilities

Requirement, Plant Layout, Waste Disposal System, Quality Control System, and

Production Cost.

III.1 Technical Production Description

A professional skin clinic should be your first stop on the path to a

perfect, healthy complexion, whether you suffer from severe acne, have a

recurring skin issue, or just wish to get yourself up with a specialized skincare

plan. Doux Skin clinic is a clinic for men and women who have skin concerns.

The clinic offers a range of products and services that could help bring back

the confidence of our client.

Below is an example of product description of a commonly known

medical equipment needed:

 ✔ Hydra facial dermabrasion machine completely changed the traditional

manual skills personal skin cleaning practices, Using full intelligent program

control of vacuum negative pressure model, Through the perfect

combination of products and equipment, in a short time deep cleaning skin

and Horny inside the pores, Acne, blackheads and other dirt, While to

enhance the nutritional composition of products deep absorption, Promote

the pores smaller, smooth skin, increase the skin’s moisture, make the skin

appear bright water whitening, moist and full of texture.

✔ FDA approved Creams and Serums

✔ Lowest price with guaranteed safety and quality

III.2 Production or Operations Process

Once the client enters the clinic, the guard or any staff will greet them and

guide them to the reception area where the front desk receptionist is located. Then

the Front desk receptionist will ask what services they need after the client and tell

them that they can go to the lounge area where other cosmetics products are

located or in the waiting room while waiting for their name to be called. Then after

their name pops up on the screen or they have been called they will ask to go to

the dermatologist's office to know what is the best treatment for their conditions.

After that if the treatment needs derma treatment they will be appointed for their

treatment. The estimated time for each client will be about 20 to 30 minutes

depending on their conditions.

II. 3 Labor Requirement

The staff needed to man the clinic is a total of Seven staffs. The clinic needs
one dermatologist ,two dermatologist assistants,two front desk receptionists, one

electrical maintenance technician and one security guard .

 The following that are listed below are the requirements for each employee

needed:

Dermatologist

Qualifications:

❖ Previous experience as a dermatologist

❖ In-depth knowledge of various dermatological methods

❖ Active communication skills and the ability to effectively explain medical terms to
patients

❖ A resilient and compassionate personality

❖ Strong attention to details
❖ 25 years and above

Requirements:

❖ A national medical license

❖ Resume

❖ NBI clearance
❖ A degree in Medical Science

❖ Diploma

❖ Certificate of Employment (from the Previous job)

❖ 3 pieces 2x2 picture (recent picture)

❖ 2 valid ID’s

❖ Drug test
Dermatologist’s Assistant

Qualifications:

❖ Any gender is accepted as long as possesses professionalism and integrity

❖ Must possess high school diploma or equivalent
❖ Must be a Registered or Certified Medical Assistant or have a Dermatology
Technician Certification
❖ Two years’ experience in a medical practice preferred
❖ Dermatology experience preferred
 Requirements

❖ Resume
❖ One to two years Customer Service Experience
(medical receptionist experience a Plus)

❖ NBI Clearance

❖ Diploma

❖ 3 pieces 2x2 picture (recent picture)

❖ 2 valid ID’s

Front Desk Receptionist

Qualifications :

❖ Detailed Oriented
❖ Mature Demeanor
❖ Graduate of high school at least
❖ Customer-oriented
❖ Punctual

Requirements:

❖ Resume

❖ NBI Clearance

❖ Diploma

❖ 3 pieces 2x2 picture (recent picture)

❖ 2 valid ID’s
Electrical maintenance technician

Qualifications:

❖ Analyze Electrical & Process issues with a problem-solving mindset

❖ Familiar with the Arc Flash and Shock Hazards to work safely in medium voltage.
❖ Read and interpret equipment manuals & work orders
❖ Detailed Oriented

Requirements:

❖ Resume

❖ NBI clearance

❖ Diploma

❖ Electrical Technology Diploma, NCCER certification or equivalent.

Security Guard

Qualifications:

❖ Any gender is accepted and must have integrity

❖ Graduate of high school at least

❖ With good personality and communication skill

❖ Customer-oriented

❖ Drug test
❖ Excellent respond and calm
Requirements:

❖ Resume

❖ NBI clearance

❖ Diploma
 ❖ Certificate of Employment (from the Previous job)

❖ 3 pieces 2x2 picture (recent picture)

❖ 2 valid ID’s

❖ Diploma of Security Guard training

III. 4 Production Schedule

Sunday Monday Tuesda Wednesda Thursda Friday Saturda

y y y y
1 2 3 4 5 6

Discount Invento
promos and
bundles ry of
start Cosme
tics

7 8 9 1 1 1 1
0 1 2 3

Ordering

Maintena of
Cosmeti
nce
c
check up
supplies

1 1 1 1 1 1 2
4 5 6 7 8 9 0

End of 2 Monthly
Maintenance weeks Meeting
checkup
Discount
Promo
 2 2 2 2 2 2 2
1 2 3 4 5 6 7

Restocki Gener
ng of al
Stocks Cleani
ng
Maintena
nce
check up

2 2 3 3
8 9 0 1

Checking
Mont of
hly cosmetic
Pay- supplies
out and other
/ peripheral
mainte s
nance
check
up
Month of March 2021

III. 5 Machinery or Equipment Requirement

⮚ Electronics Cash Register

⮚ Computer set

⮚ CCTV
⮚ Specialized Equipment- LASERS and Light Systems
⮚ Dermal Instruments
⮚ Dermastoscope
III.6 Materials and Supplies Requirement

⮚ Samplers
⮚ Catalogs
⮚ Brochures

⮚ Record keeping

⮚ Personal Protective Equipment (PPE)

⮚ Display rack

⮚ Bookshelf
III.7 Skin Clinic Location

The Doux Skin Clinic is located at Poblacion, Polomolok, South Cotabato

III.8 Utilities Requirement

⮚ Electricity

⮚ Internet Connectivity

⮚ Water

⮚ TV

⮚ Phone Service
III.9 Plant Layout
III.10 Waste Disposal System

The waste disposal system was adapted from the Department of

Environment and Natural Resources; Environmental Management Bureau.

Collection 🡪 Transportation 🡪 Recycling/Landfills

III.11 Quality Control System

Quality
Quality Quality Quality
Planning Assurance Improvem
Control
ent
Plan Do Check Act

Determine Monitor specific Determine if Increase the

what will be Treatment measurement of effectivenes
the quality earning to quality is s and
of the determine if they appropriate by efficiency of
product and meet evaluating the project
services performance overall when
and how measurement performance on corrective
quality will thresholds a regular basis actions such
be defined in the to ensure the as Change
measured quality project will Requests
management satisfy customer
plan quality
expectations

III.12 Production Cost

The business’ estimated total production cost per annum is 2,700,000 php
 CHAPTER IV

ORGANIZATIONAL

PLAN

This chapter includes all that is needed to form an Organizational Plan. This

chapter is consisting of what Legal Form of Business is the business that the

entrepreneur wanted to have, Organizational Structure of the business, what are the

Qualifications of Officers, Office Equipment, and the Administrative Expenses.

IV.1 Legal Form of Business

Doux Skin Clinic operates as a sole proprietorship. Considering the

company is still in its early stages, the likelihood of future partnerships is

currently being assessed.

IV.2 Organizational Structure

IV.3 Qualification of Officers

 Business Supervisor

o Must be a graduate of any 2 or 4-year course

o Good communication skills

o Must be good in handling business

o Computer Literate

IV.4 Office Equipment

 Computer Set

 Printer

 Table & Chair

 Cabinets

 Reference books

 Record book

 Calculator

IV.5 Administrative Expenses

The total administrative expenses is 58,460.00 php. Following the average

minimum wage for the employees here in Region XII which is ₱336.00 a day for

8 hours multiply to 24 days in a month is a total of 8,064.00php x 5 employees =

40,360.00 php. For the Supervisor, the monthly wage is 18,100.00 php. The total

of the wages combined 40,360.00 php + 18,100.00 php = 58,460.00 php

 TOTAL WORKDAYS

IN A MONTH

Number Number
Total
of days of weeks

7 4 28 days

TOTAL SALARY FOR AN EMPLOYEE

Minimum Wage Number of

Total
(8hrs/day) Days

336.00 php 24 8,064.00 php

TOTAL ADMINISTRATIVE EXPENSES

Monthly Wage Number of Employees Total

Employees 8,064.00 php 5 40,360.00 php

Supervisor 18,100.00 php 1 18,100.00 php

Grand Total 58,460.00 php

 CHAPTER V

FINANCIAL PLAN

This chapter tackles about the financial aspect of the business plan. This

includes the Total Project Cost, Source of Financing, Projected Financial Statements,

Profitability Index, and List of Assumptions Used.

V.1 Total Project Cost

The total estimated project cost is 386,400 php including the lease,

equipment and payment for professionals hired for the assembling of the interior

design and plant layout.

Total

4,500 php per 4,500 php x 12

Lease Payment 54,000 php
month months

Store Equipment 300,000 php 300,000 php

Labor 270 php per day 270 php x 72 32,400 php

per worker days x 5 workers

Total Project Cost 386,400 php

V.2 Sources of Financing

The source for financing the building of the business will be from the

owner’s personal investment.

V.3 Projected Financial Statement

V.3.1 Projected Income Statement net income should increase

MediBox Books and Supplies

Projected Income Statement

Month of May one year

2021 payback period is six month

Sales 400,000 php

Cost of Sales 200,000 php

Gross Profit 200,000 php

Operating Expenses

Salaries and wages 58,460 php

Light and power 3,500 php
Postage and communication 2,000 php
Rent 4,500 php
Office supplies 540 php
Advertisement 55,000 php

124,000 php

Net Income 76,000 php

The approximate monthly gross income is 200,000 php and 2,400,000

annually. The total expenses is 124,000 minus this to the gross income 200,000

php the total net income per month is 76,000 and the approximate yearly net

income would be 912,000 php.

 V.3.2 Pro Forma Balance Sheet

Year 1
NON-CURRENT ASSETS

Rent 54,000 php

Office furniture & Equipment 20,000 php
Signboard 1,600 php

Machine & Equipment 100,000 php

175,600 php
CURRENT ASSETS

Book Stocks 1,080,000 php

Medical Supplies Stocks 1,320,000 php

2,400,000 php
TOTAL ASSETS 2,575,600 php

LIABILITIES
Income Tax Payable 163,600 php
TOTAL LIABILITIES 163,600 php
Owner’s Capital

Initial Capital 1,500,000 php

Net Income 912,000 php
TOTAL CAPITAL 2,412,000 php
TOTAL LIABILITIES AND CAPITAL 2,575,600 php
 V.3.3 Cash Flow Projection

May June July

Beginning Cash Balance 125,000 php 210,500 php 350,440 php

Cash Inflows
Goods sold 400,000 php 455,000 php 395,000 php
Total inflows 400,000 php 455,000 php 395,000 php

Cash outflows
Production cost 250,000 php 250,000 php 250,000 php
Payroll 58,460 php 58,460 php 58,460 php
Utilities 5,500 php 6,000 php 5,300 php
Office Supply 540 php 600 php 560 php
Total Outflows 314,500 php 315,060 php 314,320 php

Net Cash Flow 85,500 php 139,940 php 80,680 php

Ending Cash Balance 210,500 php 350,440 php 431,120 php

V.4 Profitability Index

V.4.1 Return on Investment

The return of investment is calculated by using net income divided

by capital multiplied by a hundred.

(912,000 php / 1,500,000 php) X 100 = 60.8%

 V.4.2 Payback Period

The payback period can be calculated by using the capital divided

by its earnings multiplied by 100.

(1,500,000 php/2,400,000) x 100 = 6.25%

The length of the payback period is 6 years and 3 months of

operating

V.4.3 Net Income: Sales Ration

The total net income that the entrepreneur can receive per month is

approximately 76,000 php. The net income per annum is approximately

912,000 php.

V.5 List of Assumptions Used

 Financial

 Resources

 Schedules

 Customer

 Competition

 Technology

 Marketing

 Facilities & Infrastructure

 Procurement

 Interest rate

 Compliance & Regulatory

 Legal

 Staffs