PROJECT BIYAYA NG BIAAN

I. PROJECT BRIEF
Proponents : De La Salle University- Dasmarinas Students
Name of Beneficiaries : Samahan ng mga Aytang Katutubo sa Biaan
Project Title : Project Biyaya ng Biaan (Wild Honey
Processing and Production)
Number of Beneficiaries : 208 members
Project Location : Upper Biaan, Mariveles, Bataan
Total Cost : P 1,800.00

II. EXECUTIVE SUMMARY

The Aeta Magbukun are an indigenous group of people who live in the mountainous
regions of Luzon in the Philippines. Traditionally, they rely on hunting and gathering for their
livelihood. However, with the changing times and the encroachment of modernization into their
ancestral lands, they have had to adapt and find new ways to sustain themselves.

One of the ways in which the Aeta Magbukun have diversified their livelihoods is by
engaging in agriculture. They cultivate various crops such as rice, corn, vegetables, and fruits.
They also rear animals like pigs, chickens, and goats for food and sale.

Another way in which the Aeta Magbukun have diversified their livelihood is through
handicrafts. They are skilled in weaving, basketry, and woodcarving, and they produce items
such as bags, hats, mats, and baskets that are sold in local markets and to tourists.

Recently, the Aeta Magbukun are trying to promote their wild honey in the market in
order to gain a sustainable income for the community and their families. With their deep
knowledge of the forest and its resources, they have developed skills in identifying the location
of beehives and harvesting honey without harming the bees.

The Aeta Magbukun’s honey is known for its unique taste and medicinal properties. It is
darker and thicker than commercial honey and has a distinct flavor that varies depending on the
plants that the bees feed on. The Aeta Magbukun believe that their honey has healing properties,
and they use it to treat various ailments such as coughs, colds, and wounds.

Currently, they are selling their harvested wild honey in recycled bottles and gallons
which are deemed not presentable to tourists nor hygienic. Relative to this, one of the Aeta
Magbukun leaders sought the assistance of the group for the provision of packaging materials in
preparation for the formation of their pop-up stall at the local public market this coming second
quarter of the year 2023. The packaging materials requested will be used in repacking their
stored honey in recycled bottles and gallons.

The Samahan ng mga Aytang Katutubo sa Biaan, composed of 208 members, was
established in February 2019 and was duly registered in the Department of Labor and
Employment as a Registered Workers Association engaged in various agricultural productions.
Many livelihood opportunities were granted to the community such as, but not limited to, cashew
nuts processing, baking and pastry, and dishwashing liquid making. However, these weren’t
sustained as the raw materials for the aforementioned livelihood businesses were not readily
available in the community. Moreover, these defeat the natural hunter and gatherer way of life of
the Aeta Magbukuns.
Relative to this, the association, through its Tribal Secretary, Ms. Marites Literal, sought
the assistance of the group of students from De La Salle University-Dasmarinas to help them in
improving their wild honey products as this is their main source of income that also generates the
largest profit among all their harvest. Specifically, SAKBI would like to have a packaging starter
kit for their recently harvested wild honey in preparation for the opening of their physical store at
the local public market in April, 2023. With the new packaging, it is expected to increase the
members’ income and augment their previous daily earnings as well as respond to the impact of
continuously rising prices of general commodities. Eventually, the group would like to link
SAKBI to various national government agencies and civic groups for capacity development.
Meanwhile, the store will be managed by the officers in accordance with their policies and laws.
Most importantly, the responsibilities, collaborative tasks, financial plan, work plan, and total
project cost are carefully discussed and planned by the members as required for the project.
Regular monitoring and evaluation will also be conducted in coordination with the
SAKBI officers, the Sangguniang Barangay ng Upper Biaan, Biaan Integrated School, and with
the local Non-Government Organization named Making a Kinship with the Indigenous, Inc.
(MAKI, Inc.) to ensure the sustainability of the project and to provide continuous business
advisory.

● Marketing Aspect
The products of the association will be sold in the local setting strategically situated near
the public market, schools, roadside, and other establishments. Specifically, the group has
already partnered with companies and establishments inside HEIP and SBMA apart from their
usual market from the town of Hermosa. They will also sell to peddlers so as to meet the
increasing demand from the vehicles passing by the national road.
Furthermore, digital marketing is also included in the long-term marketing and
promotional plan of the project wherein, the products will be posted online through different
digital advertising channels such as social media platforms (Facebook Page & Groups) and
through some of the most common online selling platforms. In addition, the LGU Hermosa shall
support the group by providing a free training session on digital marketing. This training will
help them establish digital channels for advertising or social media platforms like Facebook
pages, groups, and notably online marketplaces. Thus, the Facebook page will be created by the
project management team, given that consumers typically favor online channels, this will be an
excellent platform for product advertising. And lastly, the page can also post through different
groups in Facebook for free and thus can have a large-scale form of advertisement which shall be
managed by the secretary of the team.
 ● Production/Operational Aspect
Raw materials shall be purchased from wholesale suppliers at very low prices. This will
then be sewn into rugs by the members of the organization and be brought to their various
partner stores, resellers, and peddlers who will remit their sales daily or weekly to the
association. Sales from the rugs will be used for raw materials replenishment and profits will be
divided among their members in accordance with their profit scheme stated in their by-laws.
Specifically, a worker can produce up to 2,000 pieces of 6 inches circumference-rug per
machine per day. This is equivalent to 240 bundles or 12,000 pieces of rugs per six-day
workweek. Should this proposal be approved, it will help the group in meeting the increasing
demand for rugs in the community and nearby provinces. Furthermore, the group would like to
engage in other rug-based products as part of their business diversification/expansion. Relative to
this, each worker has their own task such as, but not limited to, tagasalansan, tagapalaman,
and/or tagatahi who earns on a piece-rate basis.

● Management Aspect
Designated responsibilities are laid in their By-laws duly signed and acknowledged for its
organization. As per the responsibilities of the officers written in the aforementioned By-laws,
the Officers and Management Staff shall perform their pledged duties regarding management
aspects of the business and its organization; from procuring, purchasing, selling, and inventories
up to the shop’s sales and yearly income. This shall be done through the united and harmonious
collaboration of the officers and as well as the members of the association.

● Financial Aspect
The capital for the purchasing of the raw materials and equipment will be provided by the
Department of Labor and Employment. Meanwhile, the Local Government of Hermosa will be
in charge of providing the seminars and technical assistance for the project as part of its equity,
particularly the Entrepreneurship Development Training (EDT).
The association’s livelihood business also anticipates being profitable in its first year of
operation, with earnings increasing over the next two years as they build and expand its customer
base. Their primary priority is to have enough cash on hand to meet their payment obligations
and to be prepared for sudden cash demands. Their cautious predictions show that their company
can generate positive cash flows and significant cash reserves.

Currently, each bundle of 36’s is sold at Php 38.00. On average, a worker can produce
around 1,800 pieces of rugs which is equivalent to 50 bundles of 36’s costing Php1,900.00 each.
Hence, in a six-day work week, the group can earn up to Php11,400.00 worth of gross income or
up to Php45,600.00 in a month per individual worker.

To date, a worker earns Php 7.00 per 50 pieces of work produced. Therefore, in a day of
producing at most 1,800 to 2,000 pieces of rugs, a worker can earn around Php 252.00 daily or a
minimum amount of Php 6,048.00 per month, considering the individual’s productivity level and
the condition of the machine and also excluding other benefits from the association.

In line with this, a reasonable return on profit is expected by the association while the
remaining net surplus shall be distributed to members in the form of interest on share capital not
exceeding the normal rate of return on investment and patronage. Provided, however, that any
cash remaining after deducting the permitted interest and the patronage refund shall be credited
to the reserve fund. The patronage refund payment shall be made accessible at the same rate to
all of the group’s patrons in proportion to their individual patronage.
 ● Collaboration of Stakeholders’ Commitments (Organization/ ACP, beneficiaries,
etc.)
The Sitio Maligaya Self-Reliant Mothers Association, Inc. shall be responsible for the
formation and implementation of the project. Each member shall help to make the shop stable
from its proposal, canvassing, and purchasing of products, and most especially the promotion
and management of the shop.

The Department of Labor and Employment commits to provide the majority of the capital
requirements for the financing of the establishment of the project while the remaining portion of
the needed start-up capital will form part of the project proponent’s equity. The agency, through
its designated Provincial Field Office operating within the proponent’s location, will perform
oversight and recommendatory function over this project, subject to the limitations as prescribed
under the memorandum of agreement between DOLE and LGU, and of the provisions under
Department Order 173-17.

LGU Hermosa shall assist the organization in the formation, implementation, and
evaluation of the project. It shall also provide seminars and other learning and development
interventions for the members with topics that will be helpful in preparing the members of the
management team such as but not limited to financial literacy, leadership training, and project
management.
III. ORGANIZATION/ ACP/ PROPONENT OVERVIEW

The Sitio Maligaya Self-Reliant Mothers Association, Inc. is composed of 35 mothers.

Their members were skilled sewers of rugs which is one of the famous products of Hermosa.
The association’s Strategic Direction for the first three years of operation are:
1. To provide additional working capital for the procurement of raw materials for rug-making;
2. To produce good quality products;
3. To provide additional employment within the community;
4. To improve productivity through optimizing available resources;
5. To penetrate the market and establish its own niche.

The Members of this association were residents of Sitio Maligaya, Hermosa, Bataan.

IV. INTRODUCTION

A. BACKGROUND INFORMATION:

The 35 members of the Sitio Maligaya Self-Reliant Mothers Association, Inc.

proposed to start their rug-making business thereby seeking DOLE’s assistance through its
Kabuhayan Program for the provision of raw materials and equipment such as, but not
limited to, sewing machines and tools amounting to Php300,000.00 necessary for the
formation and operation of their business. The members will use the municipality’s training
center for their production and will partner with physical stores, online sellers, resellers,
and peddlers for their selling process.

B. OBJECTIVES:
The purpose of the project proposal is to enable the identified beneficiaries in acquiring
livelihood assistance with the following objectives:

● To improve the financial capability of the participants through the provision of

the DOLE Kabuhayan Program for micro-enterprise development;
● To equip the participants with the knowledge and skills necessary for operating a
rag making shop;
● To learn how to make sound and immediate decisions in operating the cooperative
business;
● To provide additional jobs to the locals of Sitio Maligaya;
● To engage and uplift the well-being of participants in social activities throughout
the training process;
● To help themselves become more independent and self-sustaining individuals by
earning income that is at par with those persons who are working in the formal
sectors;
 ● To allow themselves to enjoy the benefits of self-development through personal
and entrepreneurial skills training and other related interventions aimed at
boosting their confidence in managing their own businesses which will be
provided by the DOLE in partnership with other National Government Agencies
(NGAs);
● To help themselves experience consistent growth and create a positive difference
in their lives and in their business through continuous support and assistance from
the Project Management Team .

C. DIRECT AND INDIRECT BENEFICIARIES:

The thirty-five (35) primary beneficiaries were self-reliant mothers of Sitio Maligaya
in Hermosa, Bataan and their family members. It would also be beneficial to the Sitio to
have a rug production in their area.

D. BRIEF DESCRIPTION OF THE PROPOSED BUSINESS:

The project is a joint initiative of the Department of Labor and Employment (DOLE),
Local Government of Hermosa, and 35 mothers from Sitio Maligaya engaged in rug
making. In addition, the shop shall be managed by the members of the association; from
purchasing the products and marketing them in their respective communities.
Consequently, DOLE will provide the funding for the products that will be purchased as
initial inventories of the project. The members of the cooperative shall be mandated to
manage the shop and attend the seminar conducted by the LGU Hermosa as well as to
actively participate in the capacity building activities that will be initiated by the DOLE
that are intended to reskill and upskill the livelihood beneficiaries.

E. LOCATION:
The association will use the municipality’s training center as their production area of rugs
with a size of 10x12sq.m located at the Sitio Maligaya, Hermosa, Bataan. Moreover, some
mothers could also work from home as the demand increases and deliver their products to the
center for distribution.
Image 1: Production Area

Image 2: Storage Area

 Image 3: Photo of the Production Area of the Self-Reliant Mothers Association, Inc.

V. THE PROPOSED BUSINESS/ PROJECT

A. MARKETING PLAN:
● Analysis of the Market
People from various municipalities and nearby provinces migrate in the town of Hermosa
for job opportunities brought by the specialized economic zone in the area. Hence, housings and
establishments begin to sprout here and there. The national roads have also started to get busy as
Hermosa begins to become one of the fastest-earning towns in the province. Relative to this, the
demand for housekeeping and/or cleaning tools is also increasing. Hence, there are numerous
potential markets for the livelihood business.

● Product or services to be offered

Initially, the association will produce pot holders. Eventually, rugs such as doormats, floor
mats, and cleaning rugs will also be produced. This will be in various shapes and sizes. Products
will be sold per bundle of 36’s at Php38.00.

● Brand Strategy

To promote and encourage patronage of their products and to achieve a better position as to
preferred stores offering similar goods by their target customers, the proponent of the project will
capitalize on the proximity of their store’s location to offer ease of access, quality and
affordability of the brands of the products to be offered in order to meet the preference of
consumers, and recommendations in order to close deals with indecisive prospective buyers.

● Distribution Strategy

Raw materials such as the rugs (retaso), fillers, and newspapers will be acquired from their
usual suppliers coming from the plants and/or factories inside the Ecozone and nearby junk
shops. Products will be distributed to various stores in the municipality. It will also be offered to
online sellers, resellers, and peddlers to widen the network and increase sales. Delivery via
courier is also an option.

● Product Strategy

The business will primarily cater the needs of the identified customers in terms of price
affordability, brand quality and accessibility but is subject to the conditions such as availability
of their preferred shape, size, and/or material of items. The products will be sold initially through
retail channels with the future consideration of adapting online selling through utilization of free
features of online marketing platforms such as Shopee, Lazada and Facebook Business page with
automated chatbot. The products/items are priced per unit and are considered to be budget-
quality friendly.
Products that will be sold are sealed with paper bags provided with receipts and appropriate
packaging. Consequently. the products shall be monitored and evaluated by the members of the
cooperative regarding their quality and reliability. Hence, the shop shall maintain the good
condition of the products.

● Pricing strategy

The group will use a shared strategy to establish itself as the market's price leader by
giving lower pricing on high-demand items than the competitors. This can be accomplished by
"prize presetting" to evaluate the consumer's preference, by offering a minimum price of
Php38.00 which could continually be increased by the following years subject to price changes
of the raw materials.

● Promotion Strategy
The products will be promoted to the store owners and/or entrepreneurs around Bataan
through social media platforms and members shall also print tarpaulins that can be used in
various stalls.

● Prospective Buyers

Utilizing the conducted market research, the management have their ideas regarding
target market and what would be expected from the customers. Thus, they are in business to
retail with wide range of rug types to the following groups of people and other residences;
a. Store Owners
b. Online Sellers
c. Resellers
d. Peddlers
B. OPERATIONAL PLAN

Raw materials will be ordered directly from the supplier and will be delivered to the shop for
inventory. After the inventory, the items will then be available for production and distribution
and will be subjected to weekly inventory of the items sold and in-stock for strict monitoring.

The association will initially produce “Pot Holder” with an average size of six (6) inches
and weight around 13 grams. The process involves arranging, stuffing rag materials such as
“retaso”, “mogmog” and “newspapers” and finally sewing to hold the materials together and
form the final product. As per time and motion conducted, two (2) workers can form and arrange
at least 700 pieces of Pot Holder a day, while a skilled sewer can sew/produce a thousand pieces
of said product. Overall, a total of eight (8) workers is required to produce Two Thousand
(2,000) pieces of Pot Holder, comprising three (3) arrangers, three (3) stuffers and two (2) skilled
sewers. Workers are paid daily in a per volume quantity rate, as illustrated:
Rate per Capacity
Daily Labor
Production Required
Process Volume Quantity Per Worker Cost per
Target Workers
Worker
Volume Cost Quantity Cost

Salansan 50 7.00 700 98.00 2,100 3 294.00

Palaman 50 7.00 700 98.00 2,100 3 294.00

Tahi 50 7.00 1,000 140.00 2,000 2 280.00

TOTAL 8 868.00

Labor Cost Per Unit 0.434

The average six (6) inches Pot Holder that weighs 15 grams is composed of retaso (70%),
“mogmog” (20%) and “newspaper” (10%). Currently, the unit cost per ton of “retaso” is at
Php11,000.00, “mogmog” is at Php7,700.00, while per kilo of scrapped newspaper is at
Php90.00. With this, we arrived at the total material cost per unit of Pot Holder product as
presented below:
In Price per Material Grams Material Cost
Materials Price Unit
Grams Grams % per Unit per Unit

11,000.0 1 ton 1,000,000 70% 10.5g

Retaso 0.011 0.1155
0

Mogmog 7,700.00 1 ton 1,000,000 0.007 20% 3.0g 0.021

Newspape 1 Kg 1,000 10% 1.5g

90.00 0.09 0.135
r
 Material Cost per Unit 0.2715

The initial production cost per unit of said product amounted roughly to Php 0.70 covering
the labor and material cost. As such, daily production cost to produce 2,000 units is estimated at
Php 1,400.00 (0.70 x 2,000). Lastly, operation and production will be six (6) days a week with
job rotation and shifts to familiarize organization’s members in the production processes while
providing them alternative sources of income.

● Plant/ Workplace
The Sitio Maligaya Self Reliant Mothers Association Inc. site is situated at Sitio Maligaya,
Hermosa Bataan. They will, however, use the training center of the municipality while other
members will work from home whenever necessary.

● Raw Materials (how many, availability from supplier, cost)

The Total Amount of raw materials and equipment amounted to P300,000.00:
UNIT
UNIT DESCRIPTION QTY. PRICE TOTAL PRICE

Hi-Speed Sewing
unit Machine 6 17,600.00 105,600.00

tons Retaso 12 11,000.00 132,000.00

tons Mogmog 5 7,700.00 38,500.00

Pcs Scissors 25 220.00 5,500.00

Pcs Sewing Thread 100 100.00 10,000.00

Pcs Trimming Scissor 10 40.00 400.00

Kgs Newspaper 50 90.00 4,500.00

Gal Sewing Machine Oil 7 500.00 3,500.00

TOTAL: 300,000.00

● Personnel
The project Management Team involves six (6) personnel composing the President, Vice
President, Secretary, Treasurer, Auditor, and P.R.O. Each member of the project management
team shall comply with their duties and responsibilities regarding the organized and structured
operation of the project. These duties and responsibilities were mentioned already in the
management plan. To ensure that the business project is supplemented with competitive
inventory of manpower, the proposed number of personnel will undergo skills development
training such as those being provided by the other government institutions for free or other paid
training subject to the availability of funds.

● Safety and Health (safety measures, protective gears)

 The project management team shall ensure that they shall conform to the Safety Protocol
and Health Safety Standard measures that are currently implemented by the government.

C. MANAGEMENT PLAN:
SITIO MALIGAYA- SELF-RELIANT MOTHERS ASSOCIATION INC.
OFFICERS

POSITION NAME CONTACT NUMBER

PRESIDENT SHYAM N. ORIBELLO 0921-539-1536

VICE PRESIDENT EDNA E. OCAMPO 0912-713-7300

SECRETARY MAYLENE P. MAALINDOG 0912-331-5218

TREASURER ALEGRIA G. AYASON 0938-878-0455

AUDITOR RODORA R. DELA RIARTE 0985-248-0455

P.R.O. JOSEPHINE C. RICARDO 0929-834-6633

Overall Composition of Management Team:

These compositions of Project Management Team are as follows:

● As to the Business Operation

● Supervisor, Purchaser - President, Vice President
● Bookkeeper- Treasurer, Auditor
● StoreClerk- Secretary
● Marketing & Promotion- P.R.O.

● As to the Monitoring
● DOLE RO3
● DOLE PFO
● Beneficiaries

Additionally, below are their other functions:

The President/Vice President shall:
● Provide all policy direction;

● Formulate development plan;

● Review the Annual Plan and budget and recommend for the approval of the
General Assembly
● Evaluate the capability and qualification and recommend for the approval of the
General Assembly the engagements of the services of an External Auditor;
● Review, monitor and evaluate the effectiveness of the programs, projects and
activities;
● Formulate and review the vision, mission and goals of the cooperative
 ● Establish risk management system;

● Establish performance evaluation system at all levels;

● Review and approve the organizational and operational structures;

● Establish policies and procedures for the effective operation and ensure proper
implementation of such;
● Report to the General Assembly the performance and achievements of the
association;
● Present to the General Assembly policies which require confirmation as provided
under the law, the By-laws, and regulations;
● Present to the General Assembly the financial, social and performance reports;
and
● Perform such other functions as maybe authorized by the General Assembly.

The Treasurer shall:

● Ensure that all cash collections are deposited in accordance with the policies set
by the cooperative;
● Have custody of all funds, securities, and documentations relating to all assets,
liabilities, income and expenditures;
● Monitor and review the financial management operations of the association,
subject to such limitations and control as may be prescribed by the officers,
● Ensure the maintenance of full and complete records of cash transactions;

● Maintain a Petty Cash Fund and Daily Cash Position Report; and

● Perform such other functions as may be prescribed in this By-laws.

The Secretary shall:
● Keep an updated and complete registry of all members

● Record, prepare and maintain records of all minutes of all meetings of the Board
of directors and the General Assembly;
● Ensure that necessary actions and decisions of the officers are transmitted to the
Serve notice of all meetings called and certify the presence of quorum in the
conduct of all meetings;
● Keep copies of the Treasurer’s report & other reports;

● serves as custodian of the seal; and

● Perform such other functions as may be prescribed in the By-laws or authorized

The Members shall:
● Helps in purchasing the items and maintaining the store in order;

● Checks materials and supplies and reports when stock is low;

 ● Receives and unpacks materials and supplies and;

● Reports damages and discrepancies for accounting, reimbursement, and record-

keeping purposes
● Record all the sales in the inventory book.

Duties and Responsibilities

The following are responsible for the operation of the business with their specific duties:

Business Operation

Supervisor – The supervisor, i.e., the president and/or vice-president, shall

have overall control of the day-to-day operation of the livelihood project.
He/she has the sole discretion relative to the overall transactions and dealings
of the business on the daily basis. 

Purchaser – The purchaser shall be in charge of monitoring the inventories

and has the authority to act on behalf of the beneficiary in terms of purchasing
the goods either on a cash basis or on account. All purchasing activities
related to replenishment of the stocks as well as the returns of bad orders shall
be directly coordinated by the purchaser to the proprietor for approval.

Bookkeeper – The bookkeeper’s primary duty is to record all transactions

related to business operations in the books of accounts. He/she has the duty to
summarize the cash flows of the business on a daily, weekly and/or monthly
basis which will serve as reference by the proprietor and other authorities for
evaluation of the financial performance of the business.

Store Clerk – The store clerk/cashier shall be in charge of safekeeping the

cash register on a daily basis. He/she shall closely work with the Bookkeeper
for the purposes of recording the daily sales of the business including the
money used to purchase inventories on cash or on account. He/she is also in
charge of the issuance of vouchers, if applicable, to be collected by the
bookkeeper at the end of the day for recording purposes.

*Note: All the members cited above only apply if the business falls under medium scale.
Otherwise, all the duties and responsibilities cited above will be shouldered by the proprietor
in case of business start-up where no additional manpower is required in the beneficiary’s
business proposal.

Monitoring

DOLE RO3 – The Regional Office shall be in charge of monitoring the

progress of the livelihood project. It shall exercise recommendatory and
oversight functions. Its representative shall work closely with the Provincial
Field Office on the different areas of implementation of the project such as but
not limited to identification of interventions to reskill and upskill the
beneficiaries relative to the management of the business, provision of
directives in case issues being encountered before, during and after the
granting of assistance, and review, approve or deny the proposed changes
affecting the nature, scope of operation, and other pertinent matters affecting
the livelihood project.

DOLE PFO – The PFO shall have the immediate exercise of regulatory
power over the direction of the operation of the livelihood project. Its
 representative shall work closely with the beneficiary relative to the progress
in the different aspects of the livelihood project and shall see to it any plans or
changes on the nature, scope and other pertinent matters affecting the
livelihood project and its operations remain consistent with the provision of
DO173 – 17.

BENEFICIARY – The beneficiary or sole proprietor shall strictly comply

with all the provisions or terms and conditions reflected in the memorandum
of agreement such as but not limited to directly coordinating with the DILP
Focal Persons any plans of changes in the nature and scope of operation of the
livelihood project as well as issues being encountered on matters of running
the business itself.

D. TRAINING NEEDS
The beneficiaries may undergo the following pieces of training depending on the need:
● Values reorientation

● Entrepreneurship development and management

● Basic accounting for non-Accountants

● Digital Marketing Training

● Leadership and Organizational Development Training

The training listed above will be conducted with the assistance of the Department of
Labor and Employment and through the Local Government Unit of Hermosa in
coordination at any nearest appropriate training venue.

E. Profit sharing scheme

The association will adapt the Memorandum Circular 2019-09 series of 2019 of
Cooperative Development Authority (CDA), as per its subject of “Guidelines in the Allocation
and Distribution of Patronage Refund”, Section 5. Allocation of Patronage refund shall be made
only after allocation of the statutory funds and interest on share capital. The amount allocated for
patronage refund shall not be less than thirty percent (30%) of the net surplus after deducting the
statutory reserves based on the principle of equity, provided further, the rate of patronage refund
shall not be more than twice the rate of interest on share capital. In line with this, as per
agreement of the cooperative supported in bylaws, they had agreed that each member will have
their patronage refund from the Net Surplus of the cooperative at the end of the fiscal year. Thus,
profit sharing scheme for the members of the cooperative merely depends on the annual income
of the cooperative, usually this is the net surplus less with 30% for the Reserve fund (10%),
Education Training Fund (10%), Community Development Fund (3%), and for the Optional fund
(7%). Conforming to the CDA’s “Rules and Regulations Implementing Certain Provisions of the
Cooperative Code of the Philippines” Section 2, and its computation;
 F. FINANCIAL PLAN:
● Monthly Working Capital Requirements
a. Cost of Direct Raw Materials
UNIT DESCRIPTION QTY. UNIT PRICE TOTAL PRICE

Hi-Speed Sewing
unit Machine 6 17,600.00 105,600.00

tons Retaso 12 11,000.00 132,000.00

tons Mogmog 5 7,700.00 38,500.00

pcs Scissors 25 220.00 5,500.00

pcs Sewing Thread 100 100.00 10,000.00

pcs Trimming Scissor 10 40.00 400.00

kgs Newspaper 50 90.00 4,500.00

gal Sewing Machine Oil 7 500.00 3,500.00

TOTAL: 300,000.00

b. Cost of Direct Labor

Members will be paid on a piece-rate basis following the standard formula:
Pay amount = (Number of garments produced x piece rate)
No. Of
Process/Worker Cost per Worker Daily Labor Cost
Workers

Salansan 3 98.00 294.00

Palaman 3 98.00 294.00

Tahi 2 140.00 280.00

Daily Labor Cost 868.00

Weekly @ 6 Days 5,208.00

Monthly @ 4 Weeks 20,832.00

c. Overhead Cost
1. * Marketing Cost:
As per discussed in the marketing aspects, the proposed project shall be introduced and marketed
to the consumers through digital marketing. Hence, the shop doesn’t have marketing costs.

2. * Monthly Utilities :

Utilities Cost
 Electricity 2,000

Water bill 1,000

Office and janitorial supplies 1,500

TOTAL 4,500

3. * Transportation: 0
4. * Rent : 0
● Pre-operating Cost
i. Cost of Trainings

Training Venue, Meals & Snacks P 50, 000. 00

Training materials Tarpaulins, supplies 12,840.00

TOTAL: Php 62,840.00

ii. Licenses/permits

● GSIS Insurance: (P56.00 x 35 P 1,960.00

pax )

● Document Stamp 200. 00

● Licenses & Permits 10, 000.00

TOTAL: P 12, 160. 00

2. Total Project Cost

FUNDING SOURCE

TOTAL
ITEM DOLE DOLE RO LGU BENEFICIARIES
COST

1. Land 50,000.00 50,000.00

2. Building 50,000.00 50,000.00

3. Working Capital

● Direct Raw 300,000.00 300,000.00

Materials

● Labor 20,832.00 20,832.00

● Utilities 4,500.00 4,500.00

 4. Pre-Operating Expenses

● Training 50, 000. 00 50, 000. 00

● Training 12,840.00 12,840.00

Materials

● Licenses/Permits 10, 000.00 10, 000.00

● GSIS Insurance 1,960.00 1,960.00

● Doc Stamp 200.00 200.00

● Notarial Fee 200.00

TOTAL Php Php Php 200.00 Php Php

488,996.00 300,000.00 75,000.00 125,332.00

G. WORK PLAN:
NO. OF
NEEDS/ISSUES/CONCERN SPECIFIC SERVICES BENEFICIARIES SCHEDULE BUDGET RESPONSIBLE AGENCY

Conduct of Business 1st week of

35
planning the month
Capability Building for the
300,000.00 DOLE
project beneficiaries
2nd week of the
Purchase of raw materials 35
month

Conduct of 3rdweek of the

Training materials, meals month 62,840.00
Entrepreneurship 35 LGU
& snacks
Development Training

Counterpart contribution
Access to government’s to GSIS 4th week of
35 1,960.00
social protection scheme the month LGU
Licenses & Permits 10,000.00

3 months upon
Liquidation
awarding

Financial Assumptions:
1. Estimated monthly production projection is at 2,000/day x 24 days = 48,000 items
2. Selling price at Php38.00 per bundle of 36pcs indicates a per unit price of Php 1.05
3. Monthly Gross Sales is projected at Php50,148.00 equivalent to volume sales of 47,760 units
covering 99.5% of the monthly production projection
4. The cost of production per unit is estimated at Php0.70 which includes material and labor cost at
approximately Php0.27 and Php0.43 respectively
5. Monthly Production Cost is at 48,000 x Php0.70 = Php33,600.00
 6. Initial investment is estimated to increase by 48% on the first year of operation based on the
annual income projection presented below and computed as Php144,576.00/Php300,000.00 =
0.48

Annual Income Projection

Sales Php 601,776.00

Cost of Goods Sold 403,200.00

Gross Profit: 198,576.00

Operational Expenses

Utilities 36,000.00

Administrative Expense 18,000.00 54,000.00

Net Income Php144,576.00

H. Commitment of Stakeholders
The Sitio Maligaya- Self Reliant Mothers Association Inc. shall be responsible for the
initiation and implementation of the project. The organization shall also be committed to the
productivity of the shop and shall continue to market and manage the products in order to ensure
the sustainability and profitability of the operation. Furthermore, the members of the
organization take the responsibility to promote the products and involve themselves to provide
the financial, operational, and management needs of the said project.
On the other hand, the Department of Labor and Employment (DOLE) shall provide the
capital for the acquisition of initial stocks. The agency shall support and evaluate the project’s
objective in the creation of livelihood and entrepreneurship among the members of the
organization.
And lastly, LGU Hermosa shall assist the organization in the initiation, implementation,
and evaluation of the project. The agency shall also conduct seminars for the members of the
organization in order to prepare them for the operation of the project. Hence, the LGU shall
guarantee the effective and efficient management of the business through strict execution of
formulated and approved sound business and management policies for the association. They will
be encouraged to promote, patronize and monitor the beneficiary’s proposed business to its
sustainability for a lifetime commitment.

Prepared by:

OFELIA S. DATU
PESO MANAGER

Noted by:

HON. ANTONIO JOSEPH R. INTON

MUNICIPAL MAYOR

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