FS Hardbound

COLLEGE OF ENGINEERING
A FEASIBILITY STUDY OF VACUUM FRIED

FRUITS TO CEBU LOCALS
A thesis in
IE 512-Project Feasibility
Presented to the Faculty of the Industrial Engineering Department
Cebu Technological University, Cebu City, Philippines
In Partial Fulfillment
Of the Requirements for the Degree
BACHELOR OF SCIENCE IN INDUSTRIAL ENGINEERING
By
Joe S. Aperdo
Gerlyn B. Serato
Khylene Marie P. Rubica
March 2016
Acknowledgement
In the pursuit of this study, several people who did countless contributions
for the success and fulfillment in all of our endeavors undertaken before this
piece of time born.
To our instructor, Engr. Teresita Capin ,thank you for all amazing efforts.
To our thesis adviser, our business partner, our enlightener, Mr. Anthony
Tabay,thank you so much!
We give thanks to our family, friends and mentors for the full-support
financially, motivations, love and care.
Above all, to our Almighty God for supplying all the things that we
need.For working invisibly and enlightenment.
To all who support us in all means and ways thank you so much.
IE 512-Project Feasibility Page i

Dedication
We humbly dedicate these upshots of bloods and sweats to:
APERDO FAMILY
SERATO FAMILY
RUBICA FAMILY
Ourselves
CTU Community
This thesis is all for you!
For the brighter future and economy!!!
IE 512-Project Feasibility Page ii

Table of Contents
Page
Acknowledgement ................................................................................................i
Dedication ............................................................................................................ii
Table of Contents............................................................................................... .iii
List of Tables .......................................................................................................vi
List of Figures .....................................................................................................xiii
Chapter I. THE PROBLEM AND ITS SCOPE
1.1 Introduction ........................................................................................ .1
1.2 The Problem ........................................................................................6
1.3 Research Methodology ........................................................................7
1.4 Definition of Terms .............................................................................10
Chapter II. MARKETING ASPECT
2.1 Product Concept ................................................................................11
2.2 Target Market .....................................................................................21
2.3 Market Study Results .........................................................................29
2.4 Marketing Mix Decisions ....................................................................56
2.5 Life Cycle Strategies ..........................................................................84
Chapter III. COMPANY PROFILE AND ITS MICROENVIRONMENT
3.1 Company Logo and Location .............................................................88
3.2 Vision, Mission, Goals, Objectives and Values ..................................89
3.3 Critical Success Factors and Strategic Approach ..............................91
3.4 Business Models ................................................................................92
3.5 Microenvironment of the Company ....................................................98
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Page
Chapter IV.TECHNICAL ASPECT
4.1 Business Location ............................................................................103
4.2 Structural Limitations ........................................................................103
4.3 Material Requirements Planning.......................................................131
4.4 Production Capacity……………………………………………………..134
4.5 Production Process ..........................................................................135
4.6 Work Cycle .......................................................................................139
4.7 Daily Production Schedule ...............................................................142
4.8 Design of Work Systems ................................................................. 145
4.9 Management of Quality ....................................................................150
4.10 Maintenance of Facilities and Equipment ......................................157
4.11 Inventory Management ..................................................................165
4.12 Supply Chain Design ......................................................................181
4.13 Waste Management Practices .......................................................190
4.14 Plant Layout ...................................................................................191
Chapter V. MANAGEMENT ASPECT
5.1 Management during Pre-Implementation Stage ..............................210
5.2 Management during Normal Operation ............................................213
Chapter VI .LEGAL AND TAXATION ASPECT
6.1 Legal Aspect ....................................................................................263
6.2 Taxation Aspect…………………………………………………………296
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Page
Chapter VII. FINANCING AND FINANCIAL ASPECT
7.1 Financing Aspect ..............................................................................297
7.2 Financial Aspect ...............................................................................317
CHAPTER VIII. SOCIO-ECONOMIC DESIRABILITY ASPECT
8.1 Socio-Economic and Environmental Goals..................................... 329
8.2 Impact Assessment...........................................................................330
8.3 Cost and Benefit Analysis……………………………………………....332
Chapter IX. SUMMARY, FINDINGS, AND RECOMMENDATIONS
9.1 Summary .........................................................................................333
9.2 Findings ...........................................................................................333
9.3 Recommendations ...........................................................................334
Appendices .............................................................................................. .xviiii
Bibliography .................................................................................................... .lxvii
Curriculum Vitae .............................................................................................. .lxiii
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List of Tables
Page
Table 1. Product Nutrient Contents………………………………………………….13
Table 2.SWOTAnalysis……………………………………………………….……....18
Table 3.Bracketed Population………………………………………………………..26
Table 4. Strata………………………………………………………………….………28
Table 5. Population Forecast…………………………………………………………28
Table 6. Potential and Available Market …………………………………………....43
Table 7. Available Demand…………………………………………………………...44
Table 8. Actual Demand………………………………………………………………45
Table 9. Historical Supply of Competitor’s Products……………………………….47
Table 10. Volume of Supply………………………………………………………….48
Table 11. Sales Projection……………………………………………………………55
Table 12. Product Mix Pricing Strategy…………………………………...………...73
Table 13. Pricing Computation and Basis…………………………………………..75
Table 14. Promotional Strategy per Life Cycle……………….…………………….80
Table 15. Promotional Schedules and Budget……………………………………..84
Table 16. Business Models………………………………………………………….97
Table 17. Suppliers of Raw Materials………………………………….……………99
Table 18.Summary of Material Cost of Renovation………………………………104
Table 19. Renovation Cost…………………………………………………………104
Table 20.Summary of Renovation Cost…………………….……………………..106
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List of Tables
Page
Table 21.Manpower Complement………………………………………………107
Table 22.Summary of Safety and Emergency Equipment……………………108
Table 23.Sanitary Tools and Equipment………………………………………..115
Table 24. Production Equipment…………………………………………….….118
Table 25.Summary of Store Equipment………………………………………..121
Table 26. Raw Materials……………………………………………….....…125
Table 27. Material Handling Equipment………………………………………..126
Table 28. Company Vehicle………………………...………………………….127
Table 29. Materials Inventory……………………………………………………128
Table30 . Machine/Equipment Inspection Guidelines………………………..129
Table 31. Repair and Maintenance for Machines and Equipment
and Availability of Spare Parts…………………………………………………..130
Table 32. Material Specification………………………………………...………131
Table 33.Parts List………………………………………………………………..132
Table 34. Bill of Materials……………………………………………………….133
Table 35. Production Capacity……………………………………………… ..134
Table 36. Precedence Table (Repacking)……………………………………..136
Table 37. Precedence Table (Cashiering)……………………………………..137
Table 38. Number of Workstation……………………………………………….139
Table 39. Idle Time of the Line…………………………………………………140
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List of Tables
Page
Table 40. Daily Production Schedule……………..…………………………….142
Table 41. Product Attributes and Variables…………………………………….150
Table 42.Maintenance of Facilities…………………………………….………..158
Table 43. Economic Order Quantity……………………………………………..169
Table 44. Ordering Cost………………………………………………………......171
Table 45. Reordering Point…………………………………….………………...174
Table 46. Safety Stock………………………………………………………….....177
Table 47. Warehousing Responsibilities……………………………………….189
Table 48.Degree of Importance Table………………………………………….193
Table 49. Non- Productive Space Allocation………………………………….195
Table 51. Summative Space Requirements……………..………….…………198
Table 52. Criteria Affecting the Selection of the Business Location…………204
Table 53. Prioritization Criteria……………………………………………….…204
Table 54. Accessibility and Visibility Scheme………………………………….206
Table 55. Availability of Transportation Scheme………………………………206
Table 56. Availability of Space Scheme………………………………………..207
Table 57. Affordability of Rent Scheme…………………………………………207
Table 58. Weight Assignment……………………………………………………208
Table 59. Management during Pre-Implementation Stage…………………..210
Table 60. RACI Matrix……………………………………………………………211
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List of Tables
Page
Table 61. Gantt Chart……………………………………………………………...212
Table 62. Contemporary Organizational Designs……………………………..214
Table 63. Employee Orientation Overview……………….…………………….234
Table 64. Training Objectives for General Manager…………………………..234
Table 65. Training Objectives for General Accountant………………………..235
Table 66. Training Objectives for Sales Manager………………………….…235
Table 67. Training Objectives for Human Resource Manager……………….236
Table 68. Training Objectives for Production Supervisor………………….....236
Table 69. Training Objectives for Team Leader……………………………….237
Table 70. Training Objectives for HR Staff…………………………………….237
Table 71. Training Objectives for Production Worker…………………………238
Table 72. Training Objectives for Purchaser…………….…………………….238
Table 73. Training Objectives for Cashier…………………………...…………238
Table 74. New Employee Training Schedule for General Manager………...239
Table 75. New Employee Training Schedule for General Accountant……...239
Table 76. New Employee Training Schedule for Production Supervisor…...240
Table 77. New Employee Training Schedule for Team Leader………….…..240
Table 78. New Employee Training Schedule for Production Worker……….241
Table 79. New Employee Training Schedule for Human
Resource Manager……………………………………………………………….241
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List of Tables
Page
Table 80. New Employee Training Schedule for Sales Manager…………..242
Table 81. New Employee Training Schedule for Human Resource Staff….242
Table 82. New Employee Training Schedule for Purchaser…………………242
Table 83. New Employee Training Schedule for Cashier……………………243
Table 84. Performance Appraisals………………………………………………244
Table 85. Disciplinary Action……………………………………………………..261
Table 86. Government Agencies………………………………………………..262
Table 87. SEC Registration Procedures………………………………………..264
Table 88. Permits and Licenses Application Procedures……………………265
Table 89. BIR Registration Procedures…………………………………………272
Table 90. BIR Registration Cost Incurred………………………………………274
Table 91. SSS Employer Registration Procedure……………………………..276
Table 92. Procedures for Getting A SSS……………………………………….279
Table 93. PAG-IBIG Fund Graduated Table……………………...……………286
Table 94. Requirements of Registration……………………………………….287
Table 95.Procedure on the Registration of Pag- IBIG for
Individual Registrant………………………………………………………………288
Table 96. DOLE Registration Cost Incurred……………………………………290
Table 97. Food and Drug Administration (FDA) License Registration………291
Table 98. Cost Summary Business Permits and Licenses………………….295
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List of Tables
Page
Table 99. Breakdown of Building Cost………………………………………….297
Table 100. Cost of Advertising……………………….………………………….298
Table 101. Cost for Licenses and Registration………………….……………..298
Table 102. Cost of Furniture and Fixture……………………………………….299
Table 103. Cost of Office Equipment……………………………… …………300
Table 104 Primary Equipment ………………………………………….……...300
Table 105 Cost of Safety Gadget and Sanitary Tools………...………………301
Table 106. Cost of Supplies and Consumables………………………………302
Table 107 Cost of Material Handling Equipment……………………………..303
Table 108 Cost of Vehicle……………………………………………………….303
Table 109 Cost of Store Equipment……………………………………………303
Table 110. Depreciation Expenses…………………………………………….304
Table 111 Cost of Direct Labor…………………………………………………306
Table 112. Cost of Indirect Labor………………………………………………307
Table 113. Cost of Administrative Labor………………………………………307
Table 114. Summary of Annual Fringe and Benefits of Employees………..308
Table 115. Electricity Costs……………………………………………………...309
Table 116. Water Consumption………………………………… ……………310
Table 117. Telephone and Internet Consumption…………………………….310
Table 118. Cost of Material Purchase Business Year 1……………………...311
Table 119. Cost of Initial Capital………………………………………………..312
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List of Tables
Page
Table 120. Fixed Assets…………………………………………..……………….312
Table 121. Pre-operating Expenses……………………………………………..313
Table 122. Operating Expenses…………………………………………………314
Table 123. Working Capital……………………………………………………….315

Table 124. Sources of Initial Capitalization……………………………………..316
Table 125. Amortization Schedule……………………………………………….317
Table 126. Income Statement…………………………………………………….318

Table 127. Projected Statement of Partner’s Equity……………………………319
Table 128. Projected Balance Sheet……………………………………………..320
Table 129. Projected Cash Flows………………………………………………...321
Table 130. Current Ratio…………………………………………....…………....323
Table 131. Debt-to-Net Worth Ratio……………………………………………...324
Table 132. Debt-To-Equity Ratio………………………………………………....324
Table 133. Net Profit Margin ……………………………………………………..325
Table 134. Return on Net Operating Profit……………………………………...326
Table 135. Asset Turnover…………………………………………………..…..326
Table 136. Return on Assets……………………………………………………..327
Table 137. Rate of Return of Partners Equity………………………………….327
Table 138. Summary of Ratios ………………………………………………….328
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List of Figures
Page
Figure 1. Flow of the Research Process…………………………………………..5
Figure 2. Research Procedures……………………………………………………9
Figure 3. Product Pictorial Sketch…………………………………………………11
Figure 4. Buying Decision Process……………………………………………......24
Figure 5. Positioning Map…………………………………………………………..25
Figure 6. Respondents Monthly Income…………………………………………29
Figure 7. Qualitative Survey Question #1……………………………………….30
Figure 8. Qualitative Survey Question # 2………………………………………..30
Figure 9. Respondents Dried Fruits Quantity Bought…………………………..31
Figure 10. Respondents Dried Fruits Marketplace……………………………..32
Figure 11. Respondents Known Brands…………………………………………32
Figure 12. Quantitative Survey Question #1…………………………...……….33
Figure 13. Quantitative Survey Question #2…………………………………….33
Figure 14. Respondents Vacuum Fried Guava Demand………………………34
Figure 15. Respondents Vacuum Fried Pineapple Demand………………….34
Figure 16. Respondents Vacuum Fried Jackfruit Demand……………………35
Figure 17. Respondents Vacuum Fried Indian Mango Demand……………..35
Figure 18. Respondents Vacuum Fried Guava Demand……………………..36
Figure 19. Respondents Vacuum Fried Fruit Variants Demand……………..36
Figure 20. Respondents Price Amenability Question…………………………37
Figure 21. Percentage of Respondents –Shop Drop By…………………….37
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List of Figures
Page
Figure 22. Decision Tree Analysis………………………………………………..39
Figure 23. Available Demand Summary………………………………………….44
Figure 24.Total Available Demand Projection…………………………………..45
Figure 25. Actual Demand Projections…………………………………………..46
Figure 26 Demand-Supply Gap………………………………………………….49
Figure 27. Market Share……………………………………………………………54
Figure 28. Sales Projection……………………………………………………….55
Figure 29. Marketing Mix Decision……………………………..………………56
Figure 30. Vacuum Fried Indian Mango Product Mix………………………….57
Figure 31. Vacuum Fried Guyabano Product Mix……………………………...58
Figure 32. Vacuum Fried Guava Product Mix…………………………………..58
Figure 33. Vacuum Fried Pineapple Product Mix………………………………59
Figure 34. Vacuum Fried Jackfruit Product Mix………………………………..59
Figure 35. Levels of Product……………………………………………………...60
Figure 36. Brand Logo…………………………………………………………….62
Figure 37. Vacuum Fried Guava Product Logo………………………………..63
Figure 38. Vacuum Fried Pineapple Product Logo……………………………63
Figure 39. Vacuum Fried Jackfruit Product Logo……………………………...64
Figure 40. Vacuum Fried Indian Mango Product Logo…………………….…64
Figure 41. Vacuum Fried Guyabano Product Logo…………………………..65
Figure 42. Vacuum Fried Guava Packaging…………………………………..65
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List of Figures
Page
Figure 43. Vacuum Fried Pineapple Packaging………………………………..66
Figure 44. Vacuum Fried Jackfruit Packaging………………………………….66
Figure 45. Vacuum Fried Indian Mango Packaging……………………………67
Figure 46. Vacuum Fried Guyabano Packaging……………………………….67
Figure 47. Product Labels………………………………………………………...69
Figure 48. Pricing Policies and Approaches……………………………………70
Figure 49.0 Product Pricing Strategy……………………………………………72
Figure 50. Value Delivery Network………………………………………………76
Figure 51. Marketing Communication Mix……………………………………..77
Figure 52. Advertising Strategy……………………………………………….…78
Figure 53. Facebook Page Snapshot…………………………………………...79
Figure 54. Flyer Design…………………………………………………………...81
Figure 55. Store Poster…………………………………………………………...82
Figure 56. TV Ad Screenshot…………………………………………………….83
Figure 57.Company Logo………………………………………………………..88
Figure 58. Location of the Business……………………………………………103
Figure 59. Product Structure Tree………………………………………………131
Figure 60. Process Flow Chart (Repacking)…………………………………..135

Figure 61. Process Chart (Cashiering)…………………………………………136
Figure 62. Assembly Chart...........................................................................138
Figure 63. Daily Production Report Sample..................................................143
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List of Figures
Page
Figure 64. Sales Report Sample Form……………………………………………144
Figure 65. Workstation Design……………………………………………………..145
Figure 66. Sample Checklist for the Assessment of Organization,
Cleanliness and Safety in Production…………………………………………….147
Figure 67. Sample Pest Control Monitoring Form………………………………..149
Figure 68. Sample Checklist for Sensory Properties of Raw Materials……….152
Figure 69. P-Chart Sample………………………………………………………....154
Figure 70. Mean Chart Sample………………………………………………….....156
Figure 71. Building Maintenance Card…………………………………………....160
Figure 72. Drainage System of Fruittyssential Hub…………………………….161
Figure 73 . Drainage Maintenance Card………………………………………….162
Figure 74. Electrical System of SR&A Fruittyssential Hub……………………...163
Figure 75. Electrical Maintenance Card…………………………………………..164
Figure 76. Purchasing System…………………………………………………….179
Figure 77. Purchase Requisition………………………………………………….182
Figure 78. Purchase Order……………………………………………………..…184
Figure 79. Purchased Order Receiving ..........................................................185
Figure 80. Payment Processing Invoices………………………………………...186
Figure 81. Plant Top Perspective View…………………………………………..191
Figure 82.Activity Relationship Diagram…………………………………………..192
Figure 83.Space Allocation…………………………………………………………195
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List of Figures
Figure 84. Perspective View ………………………………………………………199
Figure 85. Store Lounge …………………………………………………………..199
Figure 86. Racks and Counter Area View ……………………………………….200
Figure 87. Repacking Area Perspective View…………………………………..200
Figure 88. Storage Area, CR and Office Perspective View……………………200
Figure 89. Perspective View……………………………………………………….201
Figure 90. Floor Plan Layout……………………………………………………… 202
Figure 91. The Fruittyssential Hub……………………………………………… 203
Figure 92. Contemporary Organizational Designs………………………………213
Figure 93. Organizational Structure……………………………………………….216
Figure 94. Sample Business Permit……………………………………………….270
Figure 95. Sample Contract for Lease………………………………………….…271
Figure 96. The SSS Form R-1……………………………………………………..275
Figure 97. The SSS Form R-1A……………………………………………………278
Figure 98. PhilHealth Member Registration Form…………………………….…281
Figure 99. Instructions on how to fill up the PhilHealth Member
Registration Form (PMRF)…………………………………………………………282
Figure 100. Employee Data Record (ER1) Form………………………………...283
Figure 101. Report of Employee Members (ER 2)…………………….…………284
Figure 102. Instructions to Report of Employee Members (ER2)……………..284
Figure 103. Employer’s Remittance Report (RF-1)……………………………..285
Figure 104. Pag-Ibig Membership Registration Form……………...……………...289
IE 512-Project Feasibility Page xvii

APPENDICES
Appendix A : Survey Questionnaire & Survey Results………………………………….xix
Appendix B: Vacuum Frying Process……………………………………………….......xxiii
Appendix C: Market Share Calculation……………………………………………………xxiv
Appendix D: Available Demand & Actual Demand………………………………………xxvii
Appendix E: Cost of Annual Purchase……………………………………………………..xxxii
Appendix F: Supply Calculation…………………………………………………………..xxxviii
Appendix G: Annual Sales……………………………………………………………………xl
Appendix H: Pricing Strategies…………………………………………………………….xliv
Appendix I: Pest Control Map Out Plan……………………………………………………xlviii
Appendix J: Food Strategies……………………………………………………………………l
Appendix K: Depreciation Expense……………………………………………………………li
Appendix L: Fringe and Other Benefits……………………………………………………….li
Appendix M: Business Contracts…………………………………………………………..,,liv
Appendix N: Purchase Plan…………………………………………………………………..lv
IE 512-Project Feasibility Page xviii

CHAPTER I
THE PROBLEM AND ITS SCOPE
1.1Introduction
Finding out if the product or service that you produced is wanted,
and while considering if the consumer is capable and willing to spend its
money and time on the product or service as well as if they can have full
access to it, can all be determined with a feasibility study. This is
an important part of a business case that should be done after a business
idea is created but before it is technically developed and long before the
production of any product is started. In essence, a feasibility study is to
determine the viability of a business venture in a specific area or sector of
business. This is the process that will identify any possible problems that
might occur between the acceptance of the product with the consumer and
how profitable the business venture might be. Philippines have rich
geographic land that can create bountiful gardens and farms that can lead
to small businesses and generate income based on locally grown fruits and
vegetables. Processing locally grown fruits and vegetables for sale and
distribution throughout the community and beyond offers economic
development opportunities for the country. Many remote areas feature
unique foods or traditional preservation methods that present niche food
product opportunities. Therefore, it can increased consumer interest in
local foods, cuisine and culture provides a growing market opportunity for
locally produced and/or processed food and natural health products.
IE 512-Project Feasibility Page 1

According to nutritional blog, junk foods today are the primary cost
of cancer-causing diseases because of its additives content .Therefore the
need for intervention of healthy fruit snack is urgently needed to respond to
the need of every individual aiming to be fit and healthy.
1.1.1Rationale of the Study
Local processed fruit business can generate incomes and can
help on promoting local food products that may increase the income on
the food sector and can attract tourists that can create jobs for the
people. Hence, Cebu is widely known, on producing processed fruit such
as dried mango that have been quite famous locally and internationally.
It devoured the taste buds of the local people and the foreign people;
there lots of processed fruit that are out in the market and most of them
are from other country. Processors must choose their products very
carefully. It is not enough to assume that processing can be a successful
business simply because there is plenty of cheap fruit available. There
must be a good demand for the processed food and this must be clearly
identified before a business is set up. The best types of products for
small-scale production are those that have a high ‘added-value’ as well
as a good demand. A high added value means that cheap raw materials
can be processed into relatively expensive products. It also means that
this can be done at a small scale of processing using equipment that is
affordable. Small-scale fruit and vegetable processors have many
competitors in Cebu as well as competing with imported products. To be

profitable, it is therefore essential to have good quality products,
attractive packaging and a well-managed business. To successfully
compete, a business should do everything it can to make products at
competitive prices and develop new ones that they are different to those
of competitors. Nowadays, there a lot of existing process in preserving
fruits that has been used by fruit-preserved processing companies. In
this ever changing and dynamic world, brilliant scientists are finding
ways on how to naturally preserved fruits in longer span of time or longer
shelf life that is still fresh to consume by the consumers and above all
there is retention of micro essential nutrients necessary to the body.
Thus, the birth of the state-of-the-art technology, the vacuum frying
technology, is currently used by many manufacturers in Asia such as
Vietnam and other foreign countries in producing vacuum fried fruits to
suffice the optimum and desired fruit preservation process. In connection
to this, this study is purposely made to propose a business about fruit
processing products here in Cebu that would greatly help the local
economy and can promote jobs for the people also increase the tourism
of Cebu.
The SR&A Fruit Essential Company is a repacking and
distribution channel of vacuum fried fruits from All Natural Essentials of
Tacloban City. The company will also establish a store called, Fruitty
Esential Hub to market the vacuum fried fruit products.

Adhering to the rule of thumb of a business, outsourcing
minimizes cost, because it entails least cost of manpower required in
performing the job. Thus, the repacking and distribution business today
fits to the rule and is now clicking in bigger markets in this present time.
1.1.2 Theoretical Background
Feasibility analysis is used to assess the strengths and
weaknesses of a proposed project and present directions of activities
which will improve a project and achieve desired results. The nature and
components of feasibility studies depend primarily on the areas in which
analyzed projects are implemented. Processors must choose their
products very carefully. It is not enough to assume that processing can
be a successful business simply because there is plenty of cheap fruit
available. There must be a good demand for the processed food and this
must be clearly identified before a business is set up. The best types of
products for small-scale production are those that have a high ‘added-
value’ as well as a good demand.
Processing fruits and vegetables is intended to do two things:
1. To preserve them by slowing down the natural processes of
decay caused by microorganisms, enzymes in the food, or other
factors such as heat, moisture and sunlight.
2. To change them into different foods, which are attractive and in
demand by consumers.

Vacuum frying is a newly discovered fruit preservation technique
that uses vacuum-frying technology .The peeled sliced- fruit is subjected
to the vacuum fryer and set to a lower temperature of at least 40 degrees
Celsius to preserve the vacuum-fried fruit chips micro essential nutrients.
It is a new way of food preserving that has been developed in the
US it is an alternative technique of deep- fat frying to reduce the oil
content of potato chips. Since the American Heart Association found out
that the leading cause of cardiovascular disease was attributed to high
fat diet they developed the vacuum fryer and was used by the snack
industries to lower fat content in their snack foods and help to reduce the
risk of heart disease.
In the early 80’s, Taiwan, Thailand and Malaysia adapted the
vacuum frying technology in producing high value products from different
raw materials such as jackfruit, pineapple, root crops which then later
gained acceptance on the market. Later on, the Philippines develop the
technology locally through the Industrial Technology department Institute
(ITDI) of the Department of Science and Technology. The first proto –
type of a batch vacuum fryer was completed with a capacity of 2kg per
batch. They use the equipment to conduct different studies on the
development of different products in the field of vacuum frying
technology. It was then used by some other clients who were interested
in specialty snack business.

In 1996 ITDI procured a batch type 5kg capacity vacuum fryer
from Japan because of the increasing demands for the technology. This
equipment is equipped with automatic pressure and temperature controls
that regulate the condition during vacuum frying. It has also a built-in
centrifuge designed to expel excess oil during cooling. ITDI has able to
set up a number of customized vacuum fryers throughout the country
from its vast experience in the development of the technology.
The customized vacuum fryer is a kind of equipment for deep-fat frying
designed to fry under reduced pressure and in a closed system that lowers the
boiling point of both oil and water in food. The temperature in vacuum frying is
low enough to retain the natural color and flavor of food while giving it a crispy
texture. The food absorbs less oil which makes it healthier to eat. Since less oil
is absorbed, frying oil turnover is greatly reduced. Furthermore, oil deterioration
in vacuum frying is slower since it only uses about 100 °C to 130 °C which are
not high enough to accelerate oil degradation during frying.
Throughout the years, most of the Asian countries produce vacuum
fried snacks such as banana, mango, pineapple, durian, red apple, jackfruit,
papaya, golden pumpkin, okra and carrot. The final products are crunchy, low
in fat and high in fiber content. The fruits and vegetables’ natural two colors and
flavors are retained with minimal changes. When packed in appropriate
packages, the products require no preservatives making them ideal as healthy
snacks.

1.1.3 Flow of the Research Process
•Brainstorming
•Conceptualization of Possible
Business Stucture
INPUT •Drafting of Questionnaires
•Distribution of Survey Questionnaires.

•Market Study
•Tabulation of Data
•Analysis of Market Study Results
•Business contract with Major
Suppliers
•Formulation of Technical Aspect
•Formulation of Management Aspect
PROCESS •Formulation of Legal and Taxation
Aspect
•Formulation of Financial Aspect
•Feasible Vacuum Fried Fruit Business
OUTPUT
Figure 1. Flow of the Research Process

1.2 The Problem
This section involves the following section in order to present the
reason why the study has been made:
 Statement of the Problem
 Statement of Assumptions
 Significance of the Study
1.2.1 Statement of the Problem
The proponents of this feasibility study sought to find out the
answers of the following quest:
 What business model, marketing strategies , business
technicalities , organizational structure and management, legal
requirements and financial management that would best
support the Vacuum Fried Fruits repacking and distribution
business of SR&A Fruit Essential Company to be feasible and
sustainable business?
1.2.2 Statement of Assumptions
The proponents of the study establish the following assumptions
in the conduct of this study:
1. The SR& A Fruit Essentials is a repacking and distribution center
company introducing vacuum fried fruits to locals.
2. The inflation rate used is 1.046%.

1.2.3 Significance of the Study
This feasibility study offers significance to the following:
Community. Employment opportunities of the jobless and food
enthusiasts.
Food Industry. The business industry could possibly get an idea of
modernized food preservation techniques.
Philippine economy. The feasibility study if proven feasible and
sustainable and will attain growth can be of great help in raising the
GNP (Gross National Product) of the Philippine economy through
tax generation.
1.3. Research Methodology
This section explains and expounds the procedures and techniques
upon gathering the information to be used for the study. In this section
research environment, research respondents, and research instruments
are included.
1.3.1. Research Environment
The researchers study aims to put up the food repacking and
distribution business in one of the central of commercialization of the
Visayas Region, which is in Cebu.

1.3.2. Research Respondents
The respondents of this study are the employed citizens, parents
and even students ages 10-59 years old, residing in Cebu City, Mandaue
City and Lapu-lapu City.
1.3.3. Research Instruments
The research instruments that helps the researchers to conduct
and gather pulse of the target market is through data gathering.
Data Gathering
In gathering the needed data, the following were the basis for the
validity of this study.
 Personal interview of the residence of Cebu (including
Mandaue and Lapu-lapu City
During gathering of data, the researchers were able to gather
information through interviews starting with what are some of the
possible preserved food products that would catch up the attention of
the market.
 Survey Questionnaires
The survey questionnaire contains the questions that helps
and at the same time assist the researchers of gathering information
that could help to make the study a successful one.
Data Treatment

The data gathered from the citizens of Cebu City are evaluated by
the researchers in order to come up with a feasible business. The
following tools are employed throughout the course of the study:
 Statistical Tool
 Excel Tabulation
 Graphical Presentation
1.3.4 Research Procedures
This feasibility study underwent through series of steps on or
before the course of the study. The respondents of the study had
undergone series of interviews both formal and informal and survey
questionnaires were given to gather data. To compete with the current
preserved foods, researchers conduct a research to lengthen the span of
food and to maintain its quality.

Start
Planning of what business to

Seeking for a feasible build up or put up ( concepts,
business to build in a Brainstorming designs, features, raw and
specific and Of ideas materials and equipment,
marketable location. target market and feasibility of
the study.
Presentation of the
agreed business to be
study to the instructor.
No
Gathering of
Yes Is the chosen
data through
study
survey
approved
questionnairre
Formulations
Analyze, interpret,
,evaluation and
and evaluate result
analysis of various End
obtained from the
feasibility study
survey questionnaire.
aspects.
Figure 2. Research Procedures
1.4 Definition of Terms
SWOT Analysis
SWOT Analysis is a structured planning method used to evaluate
the strengths, weaknesses, opportunities and threats involved in a project
or in a business venture.
PEST Analysis

PEST is an acronym for Political, Economic, Social and
Technological factors, which are used to assess the market for a business
or organizational unit.
Advertising
A non-personal form of promotion delivered through media outlets
that generally require the marketer pay for message placement.
Food Preservation
It refers to anyone of a number of techniques used to prevent food
from spoiling such method as canning, pickling, drying, and freeze-drying,
irradiation, pasteurization, smoking, and in the addition of chemical
additive.
Vacuum Fried Dryer
It is a deep-frying device housed inside a vacuum chamber. It is
used to maintain the natural color and flavors of the finished product.

CHAPTER II
MARKETING ASPECT
2.1 Product Concept
Vacuum Fried Fruits will be an additional fruit preserves to the
dried fruit family pre-existing in the market. Vacuum frying is a process of
preserving the fruits to be natural and nutritious with the aid of vacuum
frying technology that decreases the oil uptake by decreasing the
temperature upon frying by subjecting the peeled and sliced fruit to a
vacuum frying and frying a the fruit to temperature below 100 degrees
Celsius to retain the micro essential nutrients sensitive to extreme heat.
2.1.2 Market Preferences on Product Design
The market preference of this vacuum fried fruits that promotes
healthy eating for healthy living preferred to be marketed to the people
ranges from 10-59 years old individuals, since these ages are ones fully
capable of consuming and buying the products.

2.1.3 Pictorial Sketch
Figure 3. Product Pictorial Sketch
Figure 3 shows the five fruit category of the product in a standee pouches
produced by the company; the vacuum fried guava , vacuum fried pineapple ,
vacuum fried jackfruit, vacuum fried Indian mango, vacuum fried guyabano.

2.1.4 Exploded Drawing
Figure 4. Exploded Drawing
Figure 4. shows the sample exploded drawing of the product , every
standee pouches assures to contain chips of the respective fruits with its zip lock
feature, the front portion of the standee pouch contains the brand name,labels,
product logo and the net weight quantity. At the back portion it contains the
nutritional facts , the trivia, the barcode and the manufacturer of the product.

2.1.6 Features and Benefits
In our country today, the dried fruit industry has been popular with
the modern consumers that have a special desire for dried snack foods.
Vacuum Fried products are liked by all age groups because of its natural
sugary feeling in every taste of the chips. Hence, fried products are
produced by immersing the food in an oil bath at a temperature above
the boiling point of water which results in counter flow of water vapor and
oil at the surface of the product. Too much oil uptake can poses
significant health problems such as coronary heart diseases, cancer,
diabetes, and hypertension and opposing with consumer’s awareness
towards the consumption of healthier and low fat food products.
In other to address such problems, we created a new way of
frying the fruit products without risking the health of the consumer while
keeping it tasty and nutritious. Vacuum Frying is an alternative and
advanced method of producing nutritious and novel snacks fruits in
which it preserves the fruit nutrients, protects the quality of the oil and
reduces oil absorption, preserve the fruit original color, have a high
hydrophilic antioxidant capacity and reduces toxic compound generation.
Spiny on the outside, sweet on the inside, the fruits such as
guava, pineapple, jackfruit, Indian mango and Guyabano are fantastic
fruits in line we are manufacturing for all of you. Our group decided to
produce a vacuum fried fruits that will surely give you nutritional benefits
and the same time a taste that will sure you will not forget.
Table 1. Product Nutrient Contents
Fruits Nutrients Benefits
 They are known to have

antioxidant properties and
therefore essential for optimum
 Vitamin A
health.
 Carotene
 Vitamin-A is also required for
 Lycopene
maintaining healthy mucusa
 Lutein
and skin
 Cryptoxathin
 Carotene is known to protect
from lung and oral cavity
Guava cancers.
 Manganese is used by the
body as a co- factor for the
antioxidant enzyme
 Vitamin B6
 Copper is required for
 Magnesium
production of red blood cells
 Copper
 Magnesium regulates high
 Manganese
blood pressure
 The B6 vitamin is needed for
proper brain development

 Guava-fruit is an excellent
source of antioxidant
 Helps protect the colon
 Vitamin C
mucous membrane that can
 Soluble Dietary fiber
decrease the binding of
cancer-causing chemicals in
the colon
Fruit Nutrients Benefits
 Vitamin C increases the

elasticity of the blood
vessels and boosts the
formation of new blood
cells.
 Contains Vitamin B that
Green Mango/ helps you retain good
 Vitamin C
Indian Mango health. They also help with
 Vitamin B
indigestion and
constipation problems.
 Helps in treating liver
disorders as it increase the
secretion of bile acids and
clean the intestines of
bacterial infections.

 Vitamin C is the body's
primary water-soluble
antioxidant, defending all
aqueous areas of the body
against free radicals that
attack and damage normal
 Vitamin C cells.
 Manganese and Thiamin is
 Manganese important in energy
production and antioxidant
Pineapple  Thiamin defences
 Copper prevents premature
 Copper
aging and increase energy
 Folate production
 Folate is needed for the
formation of red and white
blood cells and increase
energy, good for the
production of DNA and
RNA
Fruit Nutrients Benefits
 Helps protect the colon

mucous membrane that
can decrease the binding
of cancer-causing
chemicals in the colon
 Guyabano contains copper,
 Soluble Dietary Fiber
a mineral promoting the
Guyabano  Copper
absorption of bone-
 Vitamin C
benefiting calcium.
 Vitamin B
 Vitamin C can help to
decrease the amount of
harmful bacteria that may
be present in the urinary
tract.
 B vitamins are known to
help increase energy

levels.
 Vitamin A is also required

for maintaining integrity of
mucus and skin.
 Vitamin C helps the body
develop resistance against
infectious agents and
scavenge harmful free
 Vitamin A radicals.
Jackfruit  Vitamin C  Magnesium helps in the
 Vitamin B6 regulation of calcium levels
 Magnesium in the body
 Vitamin B6 needed for
normal brain development
and function, and helps the
body make the hormones
serotonin and
norepinephrine, which
influence mood.
2.1.7 Characteristics of the Product
 It has less oil than any other dried fruit products.
 It preserves the original colour and flavour of every fruit.
 It is tangy and crispy.
 Gives a refreshing aroma of the fruit.
2.1.8 Shelf Life
The innovated Vacuum Fried fruits are consumable in the market
good until 18 months after its manufacturing date. It should be displayed

and stored in a cool dry place away from direct sunlight and high
temperature. The consumer must avoid prolonged exposure to air after
opening the product since it affects the crispness and it should be
consume immediately.
2.1.9 Aesthetic Appeal
The Vacuum Fried Fruits has the same appearance of the current
chips brought in the market.
 The Guava, sliced vertically to a stick-like with its seeds on
the inside.
 The pineapple, sliced in a triangular thick with average
thickness.
 The jackfruit freshly pinched from fresh ripe jackfruit, seeds
out for you to fully taste the saccharine taste of every chip.
 The Indian Mango, sliced thinly from a green Indian Mango
to retain the tartness of the product.
All of these chips can be picked up in our captivating standee
pouches.
2.1.10 Overall Customer Appeal
Vacuum Fried Fruits are nutritious snacks to everyone. The
Vacuum Fried Fruits promotes the patriotism of our own locally made
product and can also promote food tourism industry to local and foreign
customers. The product will be sealed with a laminated standee pouches
for it to be handy for you to bring anywhere you go and consume in all

occasion you want. You can choose different variants from various fruit
snack category. These are FDA, DOST, HALAL, and HACCP approved.
2.1.11 SWOT Anaysis
The SWOT analysis is a business analysis technique that your
organization can perform for each of its products, services, and markets
when deciding on the best way to achieve future growth. The process
involves identifying the strengths and weakness of the organization, and
opportunities and threats present in the market that it operates in. (free-
management-ebooks, January 20, 2014)
SWOT analysis is a business analysis technique that your
organization can perform for each of its products, services, and markets
when deciding on the best way to achieve future growth. The process
involves identifying the strengths and weakness of the organization, and
opportunities and threats present in the market that it operates in. (free-
management-ebooks, January 20, 2014)
Clear definitions:
 Strengths- Internal factors those are favorable for achieving
your organization’s objective.
 Weaknesses- Internal factors those are unfavorable for
achieving your organization’s objective.
 Opportunities- External factors those are favorable for

 Threats- External factors those are unfavorable for
Table 2.
SWOT Analysis
Strengths Weaknesses
1. Healthy fruit snacks, micro nutrient

1. High price
essential-valued snack
2.Unfamiliar/Newly Introduced
2. Uniquely Engineered Hub
Type of Snack
3. High Profitability
4. Food Standard Complied Repacking

Centre
5. Team-Driven Management
Opportunities Threats
1. Trend of healthy lifestyle 1. Competitor's Price

2. Broader Distribution Channels 2. Increasing Competitors
Strengths
 Healthy Snacks – The vacuum fried fruits are healthy snacks
that contains a high amount of nutrients that is also a micro
essential nutrient-valued.
 Uniquely Engineered Hub – The company offers a state-of-the-
art and engineered hub that is relaxing to customers if they want
to consume the vacuum fried fruits inside the hub.

 High Profitability – As indicated in Maslow’s hierarchical of
human needs ,foods plays significantly .The vacuum fried fruits
offered captured big demand due to its affordability thus it will
gain profits.
 Food Standard-Complied Repacking Center- vacuum fried fruits
is repacked by SR&A Fruit Essentials Company into a an area
that is food standards complied methodology set by authorities.
 Team-Driven Management- The organization values teamwork
as we believe to make our dream work. We value strong bond
of relationship in achieving our goals
Weaknesses
 High Price – The price of the vacuum fried fruits are quite high
to the employed competitive pricing strategies.
 Unfamiliar/Newly Introduced Type of Snack – The hub might not
be able to attract the customer interests since it is new in the
market.
Opportunities
 Trend of Healthy Lifestyle – Hence many of the offered snacks
are not as healthy as the Vacuum Fried Fruits and can cause
diseases, many of the people nowadays are health conscious.
Thus, giving the opportunity of the offered snacks to catch their
attention.

 Broader Distribution Channels- the vacuum fried will surely be
displayed as business runs for years into a channel or market
that is accessible to consumers.
Threats
 Competitor’s Price – The competitor’s price is one of the issue
that really matters even though both of the services offers a
healthy food but still the customer will mostly prefer to buy or
spend less that is offered in the market.
 Customer Income – The Customer Income really matters since
it is where the customer will get their budget of buying the
necessities they need.
 Increasing Competition – With the increasing percentage of
illness due to unhealthy lifestyle, manufacturers of snacks food
will surely innovates snacks that contain a large amount of
nutrients content.
2.2 Target Market
Target market is a specific group or individual customer at which a
company wishes to distribute its products and services. These are the
target customers that are most likely to avail or buy the services or
products that the company is offering.
2.2.1 Catchment Area

In analyzing catchment area is done from time to time that will
give information about what is happening and where to concentrate
marketing to get more customers. The catchment area of an
establishment is useful information to decide an establishment location
and post establishment opening marketing energies focus. The prime
consideration of customer’s establishment choice, based on nearness to
home/work, and for individuals. “SR & A Fruit Essentials Company” will
be located where it is very near to the malls, schools, and offices of
Colon Street, Cebu City where the location will be more accessible to
people. This location is really near in our potential consumers that can
help to boost our income and sustain the elasticity of our business. The
location of the business is situated wherein it is can easily be recognized
since it is along the road wherein majority of the people working near the
store and shopping in the mall that passes by.
2.2.2 Segmentation Basis
“A segmentation basis is defined as a set of variables or
characteristics used to assign potential customers to homogeneous
groups.” (Wedel & Kamakura, 2000).
Understanding customer’s similarities is important to consider
upon developing a customer service strategy for any businesses.

Demographic Segmentation- segmentation that focuses on age,gender
,family size, income ,education, religion and others.
Segmented by Age, Financial Capability
Since food is on top hierarchal needs of human being, the vacuum
fried fruits are segmented through age. Base on researchers and
adviser’s analysis, age ranging 10-59 years old are capable of eating our
newly introduced nutritious edible vacuum fried fruit products.
Geographic Segmentation- segment focuses on location of target
market. The vacuum fried fruit will be solely introduced to Cebu Locals.
Psychographic Segmentation-segment focuses on activities, interest,
opinions, attitudes and values. The vacuum fried fruits targets
individuals’ fond of consuming dried fruits or candied fruit preserves.
2.2.3 Buying Decision Behavior
Buying Behavior is the decision processes and acts of people
involved in buying and using product/service. It is on how the market hit
the service offered or the item endorsed. The Fruittysential Hub of SR&A
Fruit Essentials offers a nutritious and delicious fried guava, pineapple,
jackfruit , Indian mango and guyabano that is Department of Science
and Technology micro-nutrient analyzed, Food and Drugs Administration
certified, Department of Trade and Industry and Security and Exchange
Commission business certified. The product lines are available to our
uniquely engineered hub.
2.2.4 Buyer Decision Process

Figure 5. Buying Decision Process
The figure 5. shows the buyer decision process. It starts when the
consumer recognizes the need for food. The need is triggered when the
consumer feels hungry or desires to eat a nutritious food through the signal
sends by the internal or external stimuli. When the internal stimulus, one of the
person normal needs rises and meets the maximum level it becomes a drive.
After recognizing the problem, the consumer will search about the information
that will satisfy its needs. Mostly consumer gathers information that falls in four

groups: personal, public, commercial or ads and through their experiences.
Some of these are through browsing the internet, chatting with friends, and even
searching for a market that produces a nutritious food.
2.2.5 Positioning Map
Positioning refers to the perception of a product in the minds of
consumer in relation to its competing product. Positioning map is a
graphical device to study and analyse the positions or perception of each
of a group of competing products in respect of two specific products
characteristic.
MICRO ESSENTIAL NUTRIENT

HIGHLY VALUED/ HIGH QUALITY
LOW PRICE HIGH PRICE
MICRO ESSENTIAL NUTRIENT LOW

VALUED/LOW QUALITY
Figure 6. Positioning Map

2.2.6 Population Information
According to Philippine Statistics Authority, Cebu ranks second
highly populated place of the country.
Table 3.
Bracketed Population
Area Both sexes Population Population (10-

Population Growth Rate 59)
Lapu-lapu City 350,422 4.91% 258,843
Mandaue City 331,213 2.46% 248,746
Cebu City 860,924 1.88% 634,866
Total Population 1,542,559 3.08% 1,142,455
Table 3 shows population of Cebu City including highly urbanized city of
Cebu; Mandaue City and Lapu-lapu City .

2.2.7 Sample Size
The target age of 10-59 was computed to be subjected for stratification
which equates to 1,142,455 from a total population of 1,542,599.
Samples were taken out from each city as the strata’s in the stratified
sampling in order to draw out the exact samples to be surveyed in each
city. Below is the complete sample size computation for the survey using
the Slovin’s Formula it is a sampling technique which allows the
researcher to sample the population with a desired degree of accuracy. It
gives the researcher an idea of how large his sample size needs to be to
ensure a reasonable accuracy of results. It is used when the behavior of
the respondents is unknown and when it is not possible to study an
entire population (such as the population of the United States), thus a
smaller sample is taken using a random sampling technique.
Slovin’s Formula:
Where: n= sample size/ number of samples
N= total population
e= margin of error
By using the Slovin’s formula with a marginal error of 5 % a sample
size of 400 person was computed:

Stratified sampling is used in this course of study as purposive
proportional representation of the whole population. (Microsoft Encarta
2009).With the computed sample size it was subjected to stratified
sampling survey technique to arrive a stratum per college:
Where: nc=number of samples per city
N=total population
n=sample size/ total number of samples
Nc=total number of population per cit
Table 4. Strata
City No. of Person
Cebu City 222

Mandaue City 87
Lapu-lapu City 91
Total 400
Table 4. shows number of survey respondents in each city (stratum),
which equates to 400 persons as respondents.
Table 5.

Forecasted Population with Death Rate
Year Raw Population Death Rate Population

2011 1,034,868.55 2.59% 1,008,065.46
2012 1,067,755.42 2.59% 1,040,100.56
2013 1,101,687.39 2.59% 1,073,153.69
2014 1,136,697.68 2.59% 1,107,257.21
2015 1,172,820.55 2.59% 1,142,444.50
Table 6.
Population Forecast
Age (10-59)
Year Population Growth Rate Population Forecast
2015 1,142,455 3.08%

2016 1,177,643 3.08% 1,213,914
2017 1,213,914 3.08% 1,251,303
2018 1,251,303 3.08% 1,289,843
2019 1,289,843 3.08% 1,329,570
2020 1,329,570 3.08% 1,370,521
2.3 Market Study Results
Qualitative Analysis
Qualitative analysis is an examination of non-measurable
data such as a firm's reputation, a brand' image, or a customer's
feelings about a product.
The fruit preserves, including dried or fried fruits is highly
demanded by Cebuanos not just because it contains highly
essential nutrients than fresh fruits, it is one way of promoting the
Cebuano culture as one of the local delicacies.

Thus, the demand for vacuum fried fruits in Cebu City,
including highly urbanized cities of Mandaue and Lapu-lapu is
highly demanded since this is freshly introduced to the market by
our company SR&A Fruit Essentials Inc. through our store
Fruittyssential Hub.
1. What is your monthly

income?
Php 20,000.00 above
31% 13%
12% Php 15,001-Php
20,000.00
25% Php 10,001-Php
12%
15,000.00
7%
Php 5001-Php
10,000.00
Figure 7. Respondents Monthly Income
The figure 7 shows the monthly income of the respondents in which the
monthly income of Php. 10,001 – Php. 15,000.00 has the highest amount of
percentage.
2. Are you aware of dried fruits/candied fruit

preserves from the Philippines as local
delicacies?
3%
Yes
97%
No

Figure 8. Qualitative Survey Question #1
The figure 8. shows that 97% of the respondents are aware of dried
fruits/candied fruit preserves from the Philippines as local delicacies.
3. Do you eat dried fruit/candied

fruit preserve?
3%
Yes
No
97%
Figure 9. Qualitative Survey Question # 2

4. How many packs of dried fruits do you
usually buy in a month?
180
160
140
120
100
80 169 Dried Fruits Demand
60
40 74 65
20 36
13 19
0 0 0 7 5 0
1 2 3 4 5 6 8 10 20 30 50
Figure 10. Respondents Dried Fruits Quantity Bought
5. Where do you usually buy dried fruits?

2%
5%
6%
Supermarket
Souvenir Shop
Hotels
87% Others

Figure 11. Respondents Dried Fruits Marketplace
6. What dried fruit brands do you know?

200 190
180
160
136
140
120 105
100
78
80 60
60 47 Known Brand
40 25
20 1
0
Figure 12. Respondents Known Brands
2.3.2 Quantitative Demand Analysis
Quantitative analysis allows the discovery of which phenomena
are likely to be real reflections of the behavior of a language or variety,
and which are merely chance occurrences. The more basic task of just
looking at a single language variety allows one to get an accurate picture
of the frequency and rarity of particular phenomena, and thus their
relative normality or abnormality.

7. If there will be Vacuum Fried Fruits
available in the market are you willing to
taste it?
9%
Will Taste
Will Not Taste
91%
Figure 13. Quantitative Survey Question #1

8. If there will be Vacuum Fried Fruits
available in the market are you willing to buy
it?
9%
Will Buy
Will Not Buy
91%
Figure 14. Quantitative Survey Question #2
If yes, how many packs are you willing to buy it?
Vacuum Fried Guava Demand

300 267
250
200
No. of Demand
150
100
50 25 17 25
12
5 0 11 3
0
1 2 3 4 5 6 10 15 20 40 50
No. of Packs
Guava Demand
Figure 15. Respondents Vacuum Fried Guava Demand

Vacuum Fried Pineapple Demand
160
138
140
120
100
No. of Demand
81
80
60
40 28 28
16 11 10
20 6 2 0 0 3
0
1 2 3 4 5 6 10 15 20 40 50 100
No. of Packs
Pineapple Demand
Figure 16. Respondents Vacuum Fried Pineapple Demand
Vacuum Fried Jackfruit Demand

180 166
160
140
No. of Demand
120
100
80
55 57 Jackfruit Demand
60
40
16 18
20 10 12
4 0 0 0
0
1 2 3 4 5 6 10 15 20 40 50
No. of Packs
Figure 17. Respondents Vacuum Fried Jackfruit Demand

Vacuum Fried Indian Mango Demand
100 93
90
80
70
No. of Demand
60 50
49
50 40 40
40 33 Indian Mango Demand
30 21
20
7
10 3 1 0 0
0
1 2 3 4 5 6 10 15 20 40 50
No. of Packs
Figure 18. Respondents Vacuum Fried Indian Mango Demand
Vacuum Fried Guyabano Demand

180 168
160
140
No. of Demand
120
100
80
Guyabano Demand
60
38
40
15 20 18
20 14 14
1 0 0 0
0
1 2 3 4 5 6 10 15 20 40 50
No. of Packs
Figure 19. Respondents Vacuum Fried Guava Demand

9. What particular variant are you willing to
buy?
300
250
No. of Demand
200
100 grams
150
150 grams
100 250 grams
50 500 grams
0 1000 grams
Guava Pineapple Jackfruit Indian Guyabano
Manggo
Vacuum Fried Fruits
Figure 20. Respondents Vacuum Fried Fruit Variants Demand
10. Are you amenable of our

Vacuum Fried Fruits base on 100
gram-pack?
350
300
250
200
150 Amenable
100
Not Amenable
50
0
Guava @ Pineapple Jackfruit Indian Guyabano
Php 40.00 @ Php @ Php Manggo Php 38.00
42.00 38.00 Php 35.00
Figure 21. Respondents Price Amenability Question

11. If there will be vacuum fried fruit
shop at Colon St. Cebu City ,are you
willing to drop by and buy?
5%
Drop By and Buy

Not Drop By and Buy
95%
Figure 22. Percentage of Respondents –Shop Drop By
Market Study Summary
As reflected on stratified sampling survey calculations, a total of
400 person responded our survey through descriptive questionnaire via
one on one interview/survey and online survey through Google Drive via
Google.com .Most of the surveyed respondents are students constituting
32% of the total surveyed responding Php 5000 below allowance per
month followed by 25% employed respondents having Php 10000-
15,000.00 income. Ninety-seven percent are aware of dried fruits or
candied fruit preserves sold in the market as local Cebu delicacies. Also
388 out 400 surveyed respondents eat dried fruits that were being
bought in supermarket in an average amount of 1 pack a month.
Philippine Brand and Cebu Best is the popular brand known by
respondents. Furthermore, 90% are willing to taste and our newly

introduced vacuum fried fruits .Out from the 90% potential market of
vacuum fried fruit product , 95% of it are willing to drop by to our shop
situated at Colon St. Cebu City and buy our product. The five vacuum
fried products are highly accepted by the potential and available target
market, vacuum fried Indian Mango is the grabbed the highest available
demand per month, followed by jackfruit, guava, pineapple and
guyabano respectively. The respondents are highly amenable of our
offered product and expect to see our product in the supermarket in the
near future. Most them are consuming our product in a regular snack
time and even want us to invest in TV advertisements and social media.

Presentation of Data and Analysis
Php 20,000.00-
above
15%- 142,124
Php 15,001-
20,000.00
14%- 132,649
What is
Potential Market Yes monthly
95%- 947,495 income/
If there will be allowance?
Php 10,001-
vacuum fried
15,000.00
Yes fruits shop at
30%- 284,249
90%- 997,363 Colon St. are you
Yes
97%- 1,108,181
If there will be
vacuum fried fruits
available are you
willing to drop by
and buy? Available
willing to taste it?
Php 5001-
Market
No
5%- 49,868
10,000.00
22%- 208,449
862,220
Php 1001-5000
10%- 94,749.00
No
10%- 110,818
Do you eat dried
fruit/candied fruit P 1000 below
preserves?
8%-75,800
(1,142,455)
No
3%-34,273
Figure 23. Decision Tree Analysis
The figure shows the breakdown of potential market and the available market of vacuum fried fruits in Cebu.

Demand Analysis
Demand Analysis is a research into the desire of consumers for a
particular product or service. Demand analysis is used to identify who
wants to buy a given product, how much they are likely to pay for it, how
many units they might purchase, and other factors that can be used to
determine product design, selling cost, and advertising strategy for a
product.
Potential Market refers to those in the total population who
profess some level of interest in acquiring the product or service. The
potential market of the business is those who are interested to avail the
said business and this is based on the results of the survey conducted
by the researchers.
Available markets are those that said YES or are WILLING to
avail of the product that will be provided by the proposed business. The
available market of the business are those who are willing to avail the
business with the suggested price given and it is based on the result of
the survey conducted by the researchers.
With regards to the proposed business of SR&A, the potential
markets are the population who are willing to buy the product offered and
has the buying power. While the available market is those who are
willing to buy the product offered and drop by to our shop location.
Demand Assumptions

1. The demand is computed with the aid of ratio and
proportion formula:
Demand Components
1. Respondents of this demand where those who already buy
existing dried fruits.
2. The number of packs bought by the respondents was used
to further calculate for the target market actual demand for
dried fruit products and so vacuum fried fruit products.
Potential Demand for Vacuum Fried Fruit Products
1. Potential Demand respondents were those respondents
interested in tasting the vacuum fried fruits.
2. There were two types of potential demand
respondents:
 Respondents who are aware of dried fruits and
currently buying it.
 Respondents who are not aware of dried fruits and
willing to taste vacuum fried fruit.
Available Demand for Vacuum Fried Fruits
1. Available demand respondents were those
respondents who are willing to buy vacuum fried fruit
if available in the market and capable of buying as
can be analyzed through their declared income.

2. The numbers of packs willing to buy by the
respondents were added to generate demand
pertaining to number of packs.
3. The weight quantity that the respondents willing to
avail if available in the market were also calculated to
generate demand in terms of weight.
Demand Computation
Demand for Dried Fruits
Total Potential Demand for Dried Fruits= 3,838,648.8 ≈ 3,838,649packs
3,838,649 packs x x = 383,864.88 kg
Potential and Available Demand for Vacuum Fried Fruits

Potential Demand and Available Demand
Table 7.
Potential and Available Market
Projected Potential Market

2015 997,363 3.08%

2016 1,028,082 3.08% 1,059,747
2017 1,059,747 3.08% 1,092,387
2018 1,092,387 3.08% 1,126,032
2019 1,126,032 3.08% 1,160,714
2020 1,160,714 3.08% 1,196,464
Projected Available Market

2015 862,220 3.08%

2016 888,776 3.08% 916,151
2017 916,151 3.08% 944,368
2018 944,368 3.08% 973,455
2019 973,455 3.08% 1,003,437
2020 1,003,437 3.08% 1,034,343
Actual Demand
This is the demand that the company captured or would like to
capture and can be computed through the devised formula:

(See Appendix D for detailed computation)
Demand Projections
Available Demand
Table 8.
Available Demand
Product 2016 2017 2018 2019 2020

VF Guava 99,731 102,803 105,969 109,233 112,597
VF Pineapple 123,254 127,050 130,963 134,997 139,155
VF Jackfruit 138,386 142,648 147,041 151,570 156,239
VF Indian Mango 148,427 152,999 157,711 162,569 167,576
VF Guyabano 113,625 117,127 120,732 124,450 128,283
Available Demand
180,000
160,000
140,000
120,000
Kilograms
100,000 2016
80,000 2017
60,000 2018
40,000 2019
20,000 2020
0
VF Guava VF VF Jackfruit VF Indian VF
Pineapple Mango Guyabano
Vacuum Fried Fruits
Figure 24. Available Demand Summary

Total Available Demand Projection for
Vacuum Fried Fruits in Kilograms
750,000
700,000
Kilograms
650,000
Total Available Demand
600,000 Projection for Vacuum Fried
Fruits in Kilograms
550,000
2016 2017 2018 2019 2020
Business Year
Figure 25.Total Available Demand Projection
Actual Demands
Table 9.
Actual Demand
Product 2016 2017 2018 2019 2020

VF Guava 58,764.00 60,570.00 62,436.00 64,362.00 66,342.00
VF Pineapple 72,624.00 74,856.00 77,166.00 79,542.00 81,990.00
VF Jackfruit 81,534.00 84,048.00 86,586.00 89,304.00 92,058.00
VF Indian Mango 87,456.00 90,144.00 92,922.00 95,784.00 98,736.00
VF Guyabano 66,948.00 69,012.00 71,136.00 73,326.00 75,582.00
The table presents the actual demand of vacuum fried fruits annually in
kilograms . (See Appendix D for detailed computation)

Actual Demand Projections
120,000.00
100,000.00
80,000.00
Kilograms
2016
60,000.00
2017
40,000.00 2018
2019
20,000.00
2020
-
VF Guava VF Pineapple VF Jackfruit VF Indian VF Guyabano
Mango
Vacuum Fried Fruits
Figure 26. Actual Demand Projections
The projected actual demand is based on 4.91% market share that the
business owner would want to steal. It is expressed in kilogram demand per year.
(See Appendix D for detailed demand projection).
Supply Analysis
Supply analysis is a detailed review of the inputs and outputs of a
process that is employed to assess how the available quantity of a
product is affected by changes in demand, input factors and production
techniques. Supply analysis is often used to make key policy decisions
by manufacturing business managers since it gives them insight into how
shifts in production are likely to influence market supply.
Supply Computation and Analysis

The total supply of the direct competitor’s products was obtained
through ratio and proportion given the market share and volume of
supply of Profood. With this, the value obtained is 3,229,564 kilograms
for the current supply (see Appendix xxx for detailed computation).
Historical and Projected Supply
Values were obtained by calculating a supply factor and
multiplying this to the total number of arrivals from the previous years.
The following table shows the supply in kilograms:
Table 10.
Historical Supply of Competitor’s Products
Year Supply Forecast

2014 3,111,333
2015 3,229,564
2016 3,352,287
2017 3,479,674
2018 3,611,902
2019 3,749,154
2020 3,891,622
Table 9. shows the historical supply of competitor’s products. These were
calculated based on the actual number of tourist arrivals in Cebu from 2014-
2015. It is assumed that upon getting the supply of 2013, the growth rate of
supply would go flow with the growth of population.

Table 11.
Volume of Supply
Volume of Supply
Direct Competitors Market Share (%)
(kilograms)
Philippine Brand 13.50 420,030.00
R&M 10.89 338,824.20
7D 13.50 420,030.00
Cebu 9.97 337,807.73
Cebu Best 10.89 338,824.2
Guadalupe 11.20 348,469.33
Jojo's 10.2 317,356.00
Others 9.82 305,532.93
Total 100 3,111,333.33
Demand and Supply Gap
Figure 27. shows that demand does not exceed the total supply of
the direct and indirect competitors. This is because competitors
overshoot the market demand because they want their products to be
available for instances of surges in demand since the product has a long
shelf life. Another reason for high supply is because competitors tap into
different markets aside from foreign tourists; markets such as local
tourists and residents of the city. The excess number of supply is also
due to a marketing strategy to gain customer attention. According to
Glenn Omura (2009), an Associate Professor of Marketing at Michigan

State University, this is a form of in-store advertising where shelf facing
and positioning increases customer awareness and affects buying
decisions. Thus due to the abundant supply of the competition, and the
limited demand, the company must penetrate the market and steal a
portion of the market share. (Please see Appendix for detailed
computation)
Demand-Supply Gap
5,000,000.00
4,500,000.00
4,000,000.00
3,500,000.00
3,000,000.00
Projected Supply
2,500,000.00
Available Demand
2,000,000.00 Actual Demand
1,500,000.00
1,000,000.00
500,000.00
-
2016 2017 2018 2019 2020
Figure 27. Demand-Supply Gap
Base on the figure presented it shows that the supply of dried fruits could
suffice the demand for dried fruits of the consumers.

Competitors Profile
Direct Competitors
Firms that tap into the Philippine dried fruit market are
considered direct competitors despite the fact that there is no
manufactured vacuum fried product available for the market. Other
dried fruit products do give the same function as the proposed
Vacuum Fried Fruits. The companies with their corresponding
brands that are famous in the eyes of the local and foreign tourists
are the following. According to DTI-Cebu, there are approximately
30 processed fruit manufacturers in Cebu; however, the top 8,
stated below, are familiar among local and international tourists.
 FPD Food International Inc.- 7D
 Profood International Corporation- Philippine Brand and
Cebu
 AEO International Food Corp.- Cebu Best
 Vermedes Inc.- R & M
 Camiluz Enterprises Inc.- Guadalupe
 Freshco Foods-Frescho
 Cebu Dried Inc.-Cebu
 Jojo’s Food Products, Inc.- Jojo’s
 Others

Product
There is a wide variety of Philippine Dried Fruit products
available in the market. Numerous kinds of dried fruits are available in
the Philippines however there is no firm according to DTI-Cebu, currently
employing vacuum frying. Dried fruit products currently in the market
differ by the kind of fruit used, the part of the fruit used and packaging
types and sizes. The different dried fruit products available in the market
are as follows:
a) Dried Mango Slices
b) Dried Mango Chips
c) Dried Mango Strips
d) Dried Green Mangoes
e) Dried Banana
f) Dried Guava
g) Dried Papaya
h) Dried Pineapple
i) Dried Coconut
j) Dried Fruit Balls
Price
Prices vary according to the fruit used and the packaging sizes
offered by the different firms. Written below is a list of some of the
products with their corresponding prices.
a) 7D Dried Mangoes 200 grams- Php 140.00

b) 7D Dried Mangoes 100 grams- Php 75.50
c) 7D Dried Mangorind 90 grams- Php 35.25
d) Guadalupe Dried Mangoes 200 grams- Php 105.00
e) Guadalupe Dried Mango Strips 100 grams- Php 40.50
f) Cebu Best Dried Mangoes 80 grams- Php 45.05
g) Cebu Dried Mango Slice 200 grams- Php 104.00
h) Cebu Dried Mango Chips 100 grams - Php 36.00
i) Philippine Brand Dried Mango Chips 100 grams – Php 36.75
j) Philippine Brand Dried Guava 100 grams - Php 26.00
k) Philippine Brand Dried Papaya 100 grams - Php 22.00
l) Philippine Brand Dried Pineapple Stick 100 grams - Php 40.00
m) Philippine Brand Fruit Balls- Php 32.00
n) Philippine Brand Dried Green Mango 100 grams - Php 49.50
o) R & M Dried Mangoes 100 grams - Php 55.55
p) R & M Dried Mango Chew 100 grams - Php 33.90
Place
Dried fruits are displayed at the following supermarkets, souvenir
shops and convenience stores. These places however are not the only
places where dried fruits can be found:
a) Savemore Supermarkets
b) SM Supermarkets
c) SM Hypermarkets
d) Rustans Supermarkets

e) Metro Gaisano Supermarkets
f) Robinson’s Supermarkets
g) 7 Eleven Convenience Stores
h) Island Souvenirs
i) Profood Gallery (for dried fruits produced by Profood
International Corporation)
j) Cebu Best Pasalubong ATBP (for dried fruits produced by AEO
International Food Corporation)
Promotion
Dried fruits nowadays are mostly promoted through the following
means:
a) Posters, signages
b) Social media (Facebook, Twitter, Instagram)
c) Newspaper advertisements
d) Tie-ups with fast-moving products

Market Share Estimation
Market Share
Freshco
9.82 10.12 R&M
10.12 10.89
7D
11.20 Cebu Best
13.50
Cebu
13.50 10.89 Philippine Brand
9.97
Guadalupe
Jojo's
SR&A Fruit Essentials
Figure 28. Market Share
The Market share of the SR&A Vacuum Fried Fruit is 9.82%. Due to some
constraints such as available capacity, availability of space and the presumed
investment of the investor, the business incorporators decided to steal 50% out
of the captured market share. Thus, the actual market share that the company
would cater is only 4.91% percent. (See Appendix C for detailed computation)

Sales Projection
Table 12. Sales Projection
Product 2016 2017 2018 2019 2020

Vacuum Fried Guava 23,505,600 24,228,397 24,973,420 25,741,353 26,532,900
Vacuum Fried Pineapple 30,502,080 31,440,019 32,406,800 33,403,309 34,430,460
Vacuum Fried Jackfruit 28,536,900 29,414,410 30,318,903 31,251,209 32,212,184
Vacuum Fried Indian Mango 17,491,200 18,029,054 18,583,448 19,154,889 19,743,902
Vacuum Fried Guyabano 25,440,240 26,222,527 27,028,870 27,860,008 28,716,703
Total 125,476,020 129,334,408 133,311,441 137,410,767 141,636,149
The table presents the sales projection of the five business year.
Indicatively, as years goes buy the sales also increases as the demand goes
higher.
Annual Sales Projections

40,000,000
35,000,000
Sa;es in Million Pesos
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
-
Vacuum Fried Vacuum Fried Vacuum Fried Vacuum Fried Vacuum Fried
Guava Pineapple Jackfruit Indian Mango Guyabano
Vacuum Fried Fruit Products
2016 2017 2018 2019 2020
Figure 29. Sales Projection
The figure 29. presents the sales projection for upcoming five consecutive
business year ranging from 2016-2020.The sales projection is computed per
variant sales of vacuum fried fruits. (See Appendix G for detailed computation).

2.4 Marketing Mix Decision
Figure 30. Marketing Mix Decision
2.4.1 Product Mix
A product mix is the total set of brands marketed in the company.
It is the sum of the product lines offered. The Fruittyssential Hub owned
and operated by the SR&A Fruit Essentials Company is a shop which
markets the vacuum fried fruits manufactured by All Natural Essential
Manufacturing Incorporated. The nutritious healthy snacks fruits contain
essential vitamins and minerals that were retained through vacuum
technology vital in maintaining strong immune systems. Here are the

following products offered by SR&A Fruit Essentials Company through
Fruittyssential Hub:
 Vacuum Fried Guava
 Vacuum Fried Pineapple
 Vacuum Fried Jackfruit
 Vacuum Fried Indian Mango
 Vacuum Fried Guyabano
All of these vacuum fried fruit products are available in five variants, 100
gram, 150 gram, 250 gram, 500 grams and 1000 grams.
Figure 31. Vacuum Fried Indian Mango Product Mix

Figure 32. Vacuum Fried Guyabano Product Mix
Figure 33. Vacuum Fried Guava Product Mix

Figure 34. Vacuum Fried Pineapple Product Mix
Figure 35. Vacuum Fried Jackfruit Product Mix

The products of SR&A Fruit Essential Company displayed at
Fruittyssential Hub comes in standee pouches of thick sealed plastic for
handy and comfortable consumption of the product.
Levels of Product
Levels
Core Actual Augmented
of
Product Product Product
Product
Figure 36. Levels of Product
Core Product
Core Product is the most basic level and simply looks at what
people set out to buy and what benefits the producer would like their
product to offer buyers. Wide promotion of healthy foods for healthy
living made the proponents push through the marketing of vacuum
fried fruits that valued micro essential nutrients of every fruits. It will
remind the Cebu’s populace to stay healthy and balanced by eating
the right foods at the right amount with the right nutrients.
Actual Product
Actual product is the tangible, physical product. It is about
translating the list of core products benefits into a product that people
will buy. The thick-sealed plastic standee pouches ensure to retain the

crispness of fruits chips. The micro essential nutrients are guaranteed
to be retained in chip of vacuum fried fruit chips. It promotes a healthy
experience in every bite of every chips that SR&A Fruit Essentials
valued, with its natural aroma of the fruits everyone would surely love
to eat. Every chip will quench the desire of healthy foods and fill our
tummy with nutritious substance.
Augmented Product
The augmented product is the non-physical part of the product.
It is usually consists of lots of added value, for which you may or may
not pay a premium. It is also involves deciding the additional non
tangible benefits that a product or service can offer.
The vacuum fried fruits of SR&A Fruit Essentials Company thru
Fruittyssential Hub aside from it provide nutritious substance and
healthy experience that every chip contains. Every standee pouch
contains nutrition facts to suffice the knowledge of every customer,
also a fruit trivia will be provided for every fruit category to give such
helpful information regarding the fruit to eat. Calorie content in every
pack and the micro essential nutrients will also be revealed in every
pack.
Positioning
Market Positioning
The vacuum fried fruit products will be an additional fruit preserved
family of the existing dried or candied fruit preserves in the market.

Positioning Statement
“To the beloved locals, taste the newly introduced local product
but extraordinarily produced with the new state-of-the art vacuum frying
facility that will surely give you a healthy experience in every bite.
Branding
Brand Name: Fruit Essential Brand Logo:
Figure 37. Brand Logo
The brand Fruit Essentials, simply signifies the essential fruit that human
body should consume and the its essential nutrients that a certain fruit we offer it
contains.

Product Name: Vacuum Fried Guava
Product Logo:
Figure 38. Vacuum Fried Guava Product Logo
Product Name: Vacuum Fried Pineapple
Product Logo:
Figure 39. Vacuum Fried Pineapple Product Logo

Product Name: Vacuum Fried Jackfruit
Product Logo:
Figure 40. Vacuum Fried Jackfruit Product Log
Product Name: Vacuum Fried Indian Mango

Product Logo:
Figure 41. Vacuum Fried Indian Mango Product Logo

Product Name: Vacuum Fried Guyabano
Product Logo:
Figure 42. Vacuum Fried Guyabano Product Logo
Packaging
 Vacuum Fried Guava
Figure 43. Vacuum Fried Guava Packaging

 Vacuum Fried Pineapple
Figure 44. Vacuum Fried Pineapple Packaging
 Vacuum Fried Jackfruit
Figure 45. Vacuum Fried Jackfruit Packaging

 Vacuum Fried Indian Mango
Figure 46. Vacuum Fried Indian Mango Packaging
 Vacuum Fried Guyabano
Figure 47. Vacuum Fried Guyabano Packaging

Packaging Description
The packaging of depicts every nutritious fruit that SR&A Fruit
Essential Company is producing. It entice every customer to really grab
at least one of every product we offer because of the captivating taste
that the packaging presents. The packaging contains the following , the
brand logo at the upper left portion, the 100% organic which throws a
message that the company is producing pure vacuum fried products, of
course the central focus of the packaging the product logo which bears
mouth-watering fruit and the vacuum fried chips . At the right bottom part
it contains the variant weight quantity.
At the back of the portion, at the upper left corner, there you could
a trivia of the fruits; it’s essential component wonders that the consumer
should know. The central label focus of the back portion of the package
is the nutritional facts, to ensure that every chip they consume contains
essential micro essential nutrients necessary for healthy body-building.
At the right bottom beneath the nutritional facts are the ingredients of the
product for transparency of the consumer and below it is the
manufacturing company of the vacuum fried fruits, the All Natural
Essentials of Tacloban City. Lastly, the barcode can be located at the left
bottom portion of the packaging for inventory control and price scanning
purposes.

Labeling
Figure 48. Product Labels
The labels of the product would surely create a trademark of the locals that
the food we manufacture is 100% natural organic and made from 100% fresh
fruits which most of us are craving to eat for. The “Export Quality” labels will
ignite the minds and heart of the consumer to patronize Filipino-made products
that has high quality.
Pricing Programs
Pricing Factors
Different internal and external environmental factors will be
considered in determining the price. Internal factors include
organization’s objectives, cost of product transport from All Natural

Essential Manufacturing Inc, from Tacloban, marketing mix components,
product category, firm’s expectation and reputation and the like. External
factors include customers and market, channel members, competitors,
government, economic condition of country and many more.
Policies and Approaches
Figure 49. Pricing Policies and Approaches
 Cost-based pricing involves the determination of all fixed and
variable costs associated with a product or service. The goal of the
cost-oriented approach is to cover all costs incurred in producing or
delivering products or services and to achieve a targeted level of
profit.
 Value-based pricing is a reflection of a product or service's
perceived value by customers, not just the company's costs to

produce or provide a product or service. The value of a product or
service is derived from customer needs, preferences, expectations,
and financial resources as well as from competitors' offerings.
 Demand-based pricing policies are not fully concerned with costs.
Instead, they concentrate on the behaviour and characteristics of
customers and the quality and characteristics of their products or
services. Demand-oriented pricing focuses on the level of demand for
a product or service, not on the cost of materials, labor, and so forth.
 Competition-based pricing policy, a company sets its prices by
determining what other companies competing in the market charge. A
company begins developing competition-based prices by identifying
its present competitors. Next, a company assesses its own product or
service. After this step, a company sets it prices higher than, lower
than, or on par with the competitors based on the advantages and
disadvantages of a company's product or service as well as on the
expected response by competitors to the set price.
2.4.2 New Product Pricing Strategy
Pricing strategies for products or services encompass three main
ways to improve profits. These are that the business owner can cut costs
or sell more, or find more profit with a better pricing strategy. There are
several market entry pricing strategies of product and it consists of
premium pricing, penetration pricing, economy pricing and skimming
pricing.

Market
Penetration
Product
Economy Skimming
Pricing
Pricing
Strategy
Strategy
Economy
Strategy
Figure 50. Product Pricing Strategy
 Skimming Pricing: setting a high initial price for a new
product.
 Penetration Pricing: setting a low initial price for a new
product.
 Economy Pricing: no-frills price. Margins are wafer thin;
overheads like marketing and advertising costs are very low.
 Premium Strategy: high price is charged for a product rill
such time as competitors allow after which prices can be dropped.
Product Mix Pricing Strategy
A pricing strategy describes the way in which charges are set to
reflect the services offered, so that however the customers choose the
use the services offered, costs can still be covered.

Table 13.
Product Mix Pricing Strategy
Product Mix Pricing

Description
Strategy
Product Line Pricing Setting prices across an entire product line
Pricing optional or accessory products sold with
Optional Product Pricing
the main product
Pricing products that must be used with the main
Captive Product Pricing
product
By-product Pricing Pricing low-value-by-products to get rid of them
Product Bundle Pricing Pricing bundles of products sold together
Pricing Objectives
The product of Fruityssential Hub of SR&A Fruit Essentials will be
benchmarked to local dried fruits sold to compete the market.
Fruityssential Hub will set reasonable prices while gaining profit but at
the same time maintaining the quality of its products.
Pricing Policy
The price of every product will be the same and will differ into fruit
category. The SR&A Fruit Essentials Company will employed a mixture
value-based pricing to give value of what product lines we are producing
and the corresponding cost of the benefits it offers and competitive
pricing to compete to the market producing a wide array of dried fruit
products in a competitive price .

Pricing Strategies
Since price is the major factor to be considered Frutyssential Hub,
we will apply the market-penetration pricing strategy as vacuum fried
fruits will be introduced newly to the public. This strategy sets a low initial
price to penetrate the market quickly and deeply—to attract a large
number of buyers quickly and win a large market share.
Price adjustment strategy will be used as well. This involves
adjustment for basic prices to account for various customer differences
and changing situations. Promotional pricing will temporarily price
products below list price to create buying excitement and urgency.
Opening discounts and freebies will be offered to its business year’s
introduction stage and special company occasions.

Pricing Computation and Basis
Table 14.
Pricing Computation and Basis
Raw Materials Quoted Mark-Up + VAT Selling Price

Price/kg (12%)
Vacuum Fried
Guava Chips Php 280.00 53% Php 400.00
Vacuum Fried
Pineapple
Chips Php 300.00 53% Php 420.00
Vacuum Fried
Jackfruit Chips Php 260.00 53% Php 380.00
Vacuum Fried
Indian Mango Php 200.00 53% Php 350.00
Chips
Vacuum Fried
Guyabano Php 220.00 53% Php 380.00
Chips
2.4.3 Placement-value and delivery network and their functions
Place
Place (distribution) is a critical element of marketing- after
all, marketing is about getting the right product, in the right
quantity, to the right place at the right time. The place positioning
of Fruityssential Hub of SR&A Fruit Essential Company is in the

heart of Cebu City where people basically drop, the busy street of
the metro, Colon St. Cebu City. It is very accessible and visible
and considered as one of the most crowded street of the Cebu
City.
Value-Delivery Network
More companies today are partnering with the other
members of the supply chain to improve the performance of the
customer value-delivery network. The network of the company,
suppliers, distributors and ultimately customers who partner with
each other to improve performance of the entire system.
SR&A Fruit
Fruittyssential
Suppliers Esssential Co. Customers
Hub
Repacking
Figure 51. Value Delivery Network
The value delivery network of the vacuum fried fruit introduction to Cebu
Locals details the flow of distribution from the chip supplier, to the SR& A
repacking center as it will be distributed to our store, the Fruittyssential Hub
reaching to the consumer.

2.4.4 Promotions-Marketing Communication Mix and Promotion
Budget Marketing Communication Mix
Sales
Promotion
Direct
Advertising
Marketing
Marketing
Communication
Mix
Public Personal
Relations Selling
Figure 52. Marketing Communication Mix
One of the primary modes of communication to promote the products of
Fruttysential Hub Inc. is through online social networking sites advertising and TV
advertising as the survey reveals base from direct respondents’ percerption.

Figure 53. Advertising Strategy
According to The Statistics Portal, the top social network used worldwide
is Facebook. Twitter and Instagram belong to the top 10 as well. These networks
are essential to online advertisement. Advertisement can begin by creating and
online account, which is for free. After which, statement post will be shared to
influence the people who patronize healthy snacks for healthy living.

Figure 54. Facebook Page Snapshot
Figure 54. presents the snapshot of the facebook fan page of the
company, Fruit Essential .It basically aims to spread awareness of the availability
of essential vacuum fried fruits along the Metro.
As the company will reach to its growth stage a TV advertising will be
aired via ABS-CBN regional television network as customer demands that it will
be advertised via television based on the survey.

Table 15.
Promotional Strategy per Life Cycle
Life Cycle Stage Definition Marketing Promotional

Objectives and Strategy
Task
To establish a Distribution of
market and flyers
established a firm
The business is initial demand for
Introduction the service
introduced to the Posters
Stage
market
To increase Social
customer networking site
awareness advertising
To maximize Flyer Distribution

market share
Growth Stage
Increase in sales To reach more
potential TV Advertising
customers
The growth of the

business is To maintain the
Maturity Stage
already achieved market share it
has built up TV Advertising
and fully
controlled.
The business Keep up with Flyers and

Declining Stage experiences a customers’ new Posters
decline in the needs
sales

Figure 55. Flyer Design
The flyer is used to attract the customer about the new launch business
as well as to give information about the products sold at the Fruittyssential Hub.

Figure 56. Store Poster
The store poster will be displayed in front of the Fruittyssential Hub.

Figure 57. TV Ad Screenshot
“Wanna trick your taste buds?” Experience the new and delicious taste of
the vacuum fried fruits available. Every bite of the chips would surely gives a
healthy experience as this will fill your mouth with substantial, micro essential
nutrient-valued chips.
Promotion Schedules and Budget
The promotional materials that will be used throughout the course
of business of Fruityssential Hub Inc. are posters and flyers. The
promotional budget will be allocated as follows:

Table 16.
Promotional Schedules and Budget
Service Life Schedule Span Activity Cost

Cycle Stage Allocation
Posters
10,000.00
Balloons
1,500.00
Flowers
2,500.00
rd
Introduction Opening to 3 Within 3 years Distribution of
Stage business year flyers
5,000.00
Freebies
15,000.00
Social
networking site 15,000.00
advertising
Flyer
Distribution 5,000.00
3rd year to 6th
Growth Stage business year Within 3 years
TV Advertising 50,000.00
Maturity Stage 6th year to 11th Within 5 years TV Advertising 50,000.00

business year
Declining Flyers and

5,000.00
12th year of Within 1 year Posters
Stage
business
Total
Promotional
Cost 159,000.00

2.5 Life Cycle Strategies
Product life cycle is a business technique that attempts to list the
stages in the lifespan of commercial/consumer products. It is into four
different stages, which include the introduction, growth, maturity and
decline stages of the product. In response to the different needs of the
product/service as it moves through its life cycle, the characteristics for
each stage also differ.
2.5.1 Introduction Stage (1 year)
Any business that is launching a new product needs to appreciate
that this initial stage could require significant investment. This does not
mean that spending a lot of money at this stage will guarantee the
product’s success.
During this stage, it is all about building the demand for the
product with the consumer, and establishing the market for the product.
The key emphasis will be on promoting the new product, as well as
making production more cost-effective and developing the right
distribution channels to get the product to market.
The basic five fruit product will be served and base price will be
offered. To augment the buying attraction of customers in the hub,
product sampling will be initiated to give them the sweet taste of the
product before its opening, a promotional strategy of three pack plus one
promo will be introduced on the opening day and will serve as freebies of
the customers who will drop by and by that day.

2.5.2 Growth Stage (3 years)
As the product enters into the growth stage of the product
lifecycle, the sales increases as customers become aware of the
product. Marketing tactics during this stage involves showing customers
how this service benefits them over the service rendered by the
competition. The idea is to maximize market share as well as establish
and maintain a competitive advantage.
For many manufacturers this is the key stage for establishing a
product’s position in a market, increasing sales, and improving profit
margins .This is achieved by the continued development of consumer
demand through the use of marketing and promotional activity. In result,
marketing plays a vital role in the accomplishment of the growth stage of
the product. The business will still invest in flyer distribution 40% less
during the introduction stage. The facebook page will continuously be
updated to spread the awareness of the available product of the
Fruityssential Hub all over the globe. To attract more customers, TV
Advertising via ABS-CBN will be launched to increase awareness of the
product lines produce and the reasons of consuming our products.
2.5.3 Maturity Stage (5 years)
In this stage, sales grow at a very fast rate and then gradually
begin to stabilize. In addition, while sales continue to increase in this
stage, they do so at a slower pace. In this phase brand awareness is
strong which results to product competition and decreased of market

share and prices. The key to surviving business on this stage is
differentiating your product from the competitor’s product in order for
your product to stand out among the rest.
During this stage, the main focus is to hold onto market share
increase its revenue by continuously uplifting the quality of the service
provided to the customers .The Fruityssential Hub will be going to initiate
activities like “Fruttyssential Barangayan” as promotional sales strategy
at the same time an advertising technique which will features activities
like Fruittysingyawan, raffle draws that will attract customers with the
product high quality healthy products being promoted.
2.5.4 Decline Stage (1 year)
This is the stage where the marketing mix and marketing efforts
decline. Sales also begin to decline as the market becomes saturated,
the product becomes technologically obsolete and customer taste
changes. If the product has developed brand loyalty, the business can
retain customers but does not attract new sales from new customers. In
this stage, the Fruttysential Hub will offer a big discount rates and
freebies on specific dates to the avid customers.

CHAPTER III
COMPANY PROFILE AND ITS MICROENVIRONMENT
3.1 Company Logo and Location
Figure 57.Company Logo
The company logo best presents the SR&A Fruit Essentials Company
mission to serve the mankind with the healthy and nutritious product lines it
offers. The SR & A represents the surnames of the founders, Serato, Rubica and
Aperdo. The oval that inscribe our name manifest the company’s well-rounded
vision to be the leading producer of vacuum fried fruits in Cebu and sooner in
Asia and even to the whole world. The green leaf simply represents nature and
throws a message to consume the best she could give to every individual
residing beneath its nesting blessings. It also pertains to the company’s mission
to only serve pure and organic fruit preserve that soothe every tongue of every
consumers bite.

3.2 Vision, Mission, Goals, Objectives and Values
Mission
Optimally serve the high quality, healthy vacuum fried fruit snack
produced by its state-of-art food technology for body ideal goodness.
Vision
To be the Cebu’s leading vacuum fried fruits distributor in local and
international tourist.
Business Objectives
1. To promote a healthy lifestyle to teenagers and elders by taking the
right essential nutrient necessary for the body present in fruits.
2. To promote the best culture of Cebuanos, the delicious and healthy
foods.
3. To be a proactive company in the aspect of social responsibility and
environmental resource sustainability.
Values
Uncompromised Quality
As we value our customer, we ensure
that the foods we feed are of high quality.

Sound Governance or Leadership
We believe that teamwork will always
makes our dream work .Thus, by maintaining
this good leadership values, the organization
will absolutely value its people and the
community.
Supplier and Customer Partnership
We will strive to develop sound communication
to our customer as to how we can suffice their need
and to our supplier as to how we can create an open
communication avenue as important asset of the
supply chain of the organization.
John F. Rockart defined Critical Success Factors as: "The limited number
of areas in which results, if they are satisfactory, will ensure successful
competitive performance for the organization. They are the few key areas where
things must go right for the business to flourish. If results in these areas are not
adequate, the organization's efforts for the period will be less than desired." The
following are the identified critical factors in developing the Fruitty Essential Hub.

3.3 Critical Success Factors and Strategic Approach
Local Tourists and Residents
Local Cebu Tourist and the residents is the target consumer
and which plays the very important role in the success of the
business, thus giving them the right quality of product they wanted
should be of great priority.SR &A Fruit Essentials Company assures
the clients an affordable, nutritious and high grade quality product
that will surely captivate their taste buds.
Competitors
Competition is not always a bad thing, it also leads to
innovation. If you’re the only player in your field, it can be difficult to
improve. And if you’re working in a crowded market, you won’t
succeed by doing what everyone else does. Healthy competition
encourages change which will distinguish your company from others
and it will help to improve on your strategies to attract more
customers. Challenging as may seem that SR&A Fruit Essential
Company has a lot of competitors in the market right now since it
sells fried fruit products which has been out in different stores and
malls in Cebu. Even though the company and its store has a lot of
competitors, it will still provide a nutritious and high quality grade fruit
snacks that will surely make the customers to ask for more.

Management
It is the management who would work on for the success of
the business therefore it has a great impact to the growth of the
business. The management is responsible in giving a high quality of
product and service and the standardization of the whole operation
of Fruitty Essential Hub and SR&A Fruit Essential Company as an
entire organization.
Staffs
Staffs or employees as a whole are the action of the
management’s plans. A satisfactory performance is a must since the
success of the management’s plans and the Excellency of the
service lies on how they accommodate customers and function as
workforce of the production areas.
3.4 Business Models
Business model is an abstract representation of an organization, be
it conceptual, textual, and/or graphical, of all core interrelated
architectural, co-operational, and financial arrangements designed and
developed by an organization presently and in the future, as well all core
products and/or services the organization offers, or will offer, based on
these arrangements that are needed to achieve its goals and objectives
(Al-Debei and Avison: 2010).

Customer Segments
Customer Segments is the subdivision of a market into distinct
customer groups that share similar characteristics, it identify the
unknown needs of the customer by answering the question for who are
we creating the value? For whom are we solving a problem or fulfilling a
need? Who are the customers? It also can help the organization develop
marketing campaigns and pricing strategies to get the maximum value
from both high- and low profit customers.
The store sells affordable, nutritious and delicious fruit snacks to
the local tourists and to the residents within the reach of the business
catchment area of the store including the students from different
universities and employees’ ages 10-59 years old. The age
segmentation is the product of brainstorming of the proponents and
incorporators as to the capability and capacity of consuming our vacuum
fried fruit products.
Value Proposition
Value Propositions are the products and services that create
value for a specific Customer Segment. It answers the following
questions: Which customer needs are we satisfying? ; What is the
specific product or services are being offered? ; What are the features
that match the customer needs? What are the benefits the market will
derive from the product or service?

The store is basically for selling the fruit snacks, the customers
can order directly what kind of fruit snacks they want and they can
choose from the variety of the fruit snack that the store sells. It will also
have an ambiance that can make the local tourists to feel at home even
they are away from their families. The store will make sure that their
customers will leave with a satisfying look on their faces not only
because of the products but also because of the high quality service that
being served. Thus, the company bears the tagline of “Healthy
experience in every bite”. The product will ensure to satisfy their tummy
but also satisfies the micro essential nutrient intake that is recommended
by Recommended Energy Nutrient Intake of the Philippines to achieve a
healthy body.
Channels
Channels are the building block that describes how the business
can connect to the customer segment. It answers the question, how can
reach our customers? What are the channels that we should use?
The store will have a Facebook page to have an online
advertising; it will also have flyers to be distributed and posters that will
be posted at the heart of Cebu and TV Advertising to reach a vast
number of consumers.
Customer Relationships
It tells the how the store establishes relationships with the
customer segments.

The store will build its relationships with its customers by being
hospitable and friendly towards them, maintains a safe and clean
environment within the store.
Revenue Streams
It is considered one of the building blocks of the business model
that reveals the earning a business makes from all the methods by which
money comes in.
The store is pay as you order business, it generates cash through
the order of the customers once they will enter the store and pick some
standee pouches vacuum products. It also generate cash through
delivery, if there is a customer that wants the desired fruit snacks but he
is away from the store, one of the staffs will deliver it to him with
minimum order has soon as she makes a call to deliver fruit snacks.
Key Resources
One of the building blocks of the business model, describing the
most important assets needed to make a business model work. Every
business model requires them, and it is only through them that
companies generate Value Propositions and Revenues. The key
resources of the Fruit Essential Company owned are its people,
equipments and the vacuum fried fruit supplies of the fruit snacks that
are being delivered from the main supplier, the All Natural Essentials
from Tacloban City and the standee pouches, from Cebu Printing and
Packaging of Subangdaku Manadaue, City.

Key Activities
These are the most important tasks a company must carry out in
order to fulfil its business purpose. To be successful, a company must
carry out key actions that are primarily dictated by its business model.
The SR&A Fruit Essential Company is a repacking and
distribution channel of vacuum fried fruits from All Natural Essentials of
Tacloban City. The store sells healthy fruit snacks to its customers and
making sure that it attracts more local tourists to love and patronize local
products.
Key Partners
One of the business models defines as the network
of suppliers and partners that make the business model work.
Companies forge partnerships to optimize their business models, reduce
risk, and/or acquire resources.
Since the SR&A Fruit Essentials Company functions as repacking
and distribution center, the key partners are: the supplier of all the fruit
snacks, All Natural Essential Manufacturing of Tacloban City, the
supplier of thick plastics, the Cebu Printing and Packaging Corporation
of Subangdaku, Mandaue City.
Cost Structure
The Cost Structure describes all costs incurred to make a
business model work. Such costs can be calculated relatively easily after
defining Key Resources, Key Activities, and Key Partnerships. The cost

structure of the store is its building, salary expense, and also the
consumption of the utilities and supplies.
Table 17.
Business Models
Customer Value Customer Revenue

Channels
Segments Propositions Relationships Streams
 Local  High  Facebook  Friendly and  Pay as

Tourists Quality Page hospitable you order
Vacuum clerks
 Students Fried Fruit  Flyers  Delivery
and snacks  Clean and
employees Safe
 TV
ages 10-59  Healthy Environment
Advertising
years old. experience
in every
chip bite
Key Resources Key Activities Key Partners Cost Structure
 Employees  Selling of  All Natural  Building

 Business fruit Essential  Salary
Partners snacks Manufacturing  Utilities
 Equipment  Repacking  Cebu Plastic Consumption
 Supplies and Package  Direct
Materials
 Indirect
Materials

3.5 Microenvironment of the Company
Suppliers
The supplier plays a vital role of the business. The company is
nothing without the presence of the supplier who will provide the
resources needed of the business in order to function of what it is
intended. The growth and the vision of the organization depends a lot of
what the supplier can offer. A good relationship between the supplier and
the organization is a great advantage to which they work together
towards their respective or common goals is known as Joint Action. In
this Joint Action, the supplier will provide a source that has a great
advantage to the business against the competitors thus saving cost and
achieving efficiency of the business.
Table 18.
Suppliers of Raw Materials
Supplier’s Company Name Contact Person Products
All Natural Essentials Mr.Tabay Vacuum Fried Fruit Chips
09436456403
Cebu Printing and Sydney Go Plastic

Packaging Corporation
346-8518
IE 512-Project Feasibility Page

Marketing Intermediaries
Marketing Intermediaries is an independent organization that aims
to help and aid the flow of services between marketing organizations and
its markets. It helps the business or organization to promote, sell, and
distribute its product to final buyers. This commonly refers to the
resellers, physical distribution firms, marketing services agencies and
financial intermediaries. Each intermediary can potentially increase or
decrease the satisfaction of the customers based on their performance.
The Fruit Essential Company will sooner be displaying their
product to supermarkets inside malls as revealed during the survey of
the potential customers of the product. In that way, it will serve as
marketing intermediary of the company.
Customers
A customer is maybe an individual or household that purchases
goods for consumption or an organization that purchases the goods or
product for resale at a profit. The target customer of the proponents are
the people at the age of 10-59 years old since at these age a person is
already knowledgeable of the food they consumed. They are wise
enough to choose a nutritious snack that can provide their body nutrients
that helps them to live longer and healthier.
Competitive Position and the Competitors

Competitive Positioning is about defining how you will
“differentiate” your offering and create value of your market or how will
you place uniqueness of your product but it is still appealing and
valuable to the eyes of the consumers. It is about carving a spot in the
competitive nature of business, putting your stake at the ground, and
winning mindshare in the marketplace, and living a certain something
that reminds your product in the mind of the consumers. It is vitally
important to be aware of the competitor activities and how they give
impact to the business hence giving you a clue to what to do about the
gathered information that could result to your great advantage against
your competitor.
The vacuum fried pineapple is a newly product launch in the
market. It is technologically produced by a vacuum frying technology.
The technology now exists in some Asian places like Vietnam. Yet this
technology newly exists in the Philippines. It is assumed that when the
product is new and of high quality and benefits, consumers will easily
avail and patronize the product.
Public
The public has a great contribution in the marketing environment.
They are the individuals that have the possibility to prioritize or either
neglect the organizations offered services. They can also be a group that
has an actual or potential interest of fulfilling the organizations objectives

or either some of them is the threat of the organization that hinder
marketing activities towards it success.

CHAPTER IV
TECHNICAL ASPECT
The technical aspect is an expounded discussion about the basic flow of
the action of the project. This is one of the important factors of the study since
this will help in determining the capacity of the project as well as its
technicalities.
This section involves the following sub sections in order to present the
technical aspect of the project:
Plant and Location of the Business, where the project will operate
Structural Limitations, includes the constraints of the business
Materials Requirement Planning,
Production Capacity
Production Process
Work Cycle
Daily Production Schedule
Management of Quality
Maintenance of Facilities and Equipment
Inventory Management
Supply Chain Design
Waste Management Practices
Plant Layout

4.1.3 Sketch of the Location
Fruittyssential
Hub
Figure 58. Location of the Business
The figure 58. presented above illustrates the sketch of the Fruittyssential
Hub of SR&A Fruit Essential Co. in the Colon Street, Cebu City.
4.2 Structural Limitations
The structural limitations are consists of the constraints recognized
in the operations of the business. This section includes the space
constraints, manpower complement, production facilities and equipment,
and materials inventory.

4.2.1 Space Constraints
Since the proposed area or location of the Fruittyssential Hub is
only rented with a space of 40 square meters. Which will only shows that
further expansion is not recommended.
Table 19.
Summary of Material Cost of Renovation
Project Hub Renovation
Description Total Cost
Walling and
A Flooring Php. 197,250.00
Works
B Tiling Php. 12,370.00
C Painting Php. 11,593.92
D Hardware Php. 14,617.50
Total Cost Php. 235,831.42
Table 20.
Renovation Cost

Description Quantity Unit Price Total Cost
A. Walling and Flooring Works
Concrete Hollow 1350 Pieces Php.12.00 Php. 16,200.00
Blocks #4
Cement 50 Sack Php. 200.00 Php. 10,000.00
Sand 15 Php. 850.00 Php. 12,750.00
Wrought Iron 100 Pieces Php. 145.00 Php. 145,000.00
Gravel 10 Php. 850.00 Php. 8,500.00

Glass wall 4 Pieces Php. 1,200.00 Php. 4,800.00
Total Php. 197,250.00

A. Tiling
8” x 8”Ceramic 1000 Pieces Php. 12.00 Php. 12,000.00

Tiles
Tile Grout 5 Pack Php. 74.00 Php. 370.00
Total Php. 12,370.00

A. Painting
Paint Thinner 5 Galloons Php. 320.00 Php. 1,600.00
Lacquer Thinner 5 Galloons Php. 415.00 Php. 2,075.00
Boysen Flatwall 10 Galloons Php. 445.50 Php. 4,455.00

Enamel, Blue

Enamel, Pink

Enamel, White
Sand Paper 5 Pack Php. 212.00 Php. 1,060.00

Rough
Sand Paper Fine 6 Pack Php. 212.00 Php. 1,272.00


Project Renovation

D. Hardware
Round Hand
Knob 4 pieces Php. 1,230.00 Php. 4,920.00
Hinges 3” x 3” 9 pieces Php. 120.50 Php. 1088.10
Hinges 4” x 4 “ 3 pieces Php. 136.50 Php. 409.50
Toilet Bowl 2 pieces Php. 1,000.00 Php. 1,000.00
Fluorescent Php. 1,200/2
Lamp 7 pieces Php. 7,200.00
pcs
Table 21.
Summary of Renovation Cost
Specification Cost
Labor Cost Php. 21,150.00
Material Cost Php. 235,831.42
Renovation Supervision Fee Php. 3,500.00
Overall Renovation Cost Php. 260,481.42

4.2.2 Manpower Complement
Table 22.
Manpower Complement
Daily No. of Total Labor

Labor Job
Rate Working Days Cost
Carpenter
Renovating 450 7 Php. 9,450.00
(3)
Plumber (2) Plumbing 550 3 Php. 3300.00
Electrician
Electric Wiring 600 2 Php. 2400.00
(2)
Paintor (3) Painting 500 4 Php. 6000.00
The number of manpower required to renovate the rented space needs a
few number of labor thus it is only estimated of 10 people to do so the
renovation. Hence, the things to be done are only renovating its flooring &
walling, tiling, electric wiring, plumbing, painting and installation of other related
electronic equipment.

4.2.3 Service Facilities and Equipment
Safety and Emergency Equipment
Table 23.
Summary of Safety and Emergency Equipment
Description Image Supplier Alternative Supplier Quantity
Emergency Light Belmont Hardware, Cebu Home and Builder Center-Banilad, A.S 2 pieces
Cebu City Fortuna St., Banilad, Mandaue City
Tel. No. 343 - 6991 / 273 – 6145
Safety and SM City Cebu, Cebu Cebu Home and Builder Center-Banilad, A.S 3 pieces
Emergency City Fortuna St., Banilad, Mandaue City
Signage Tel. No. 343 - 6991 /273 – 6145
Belmont Hardware
Depot, P. Burgos Cebu Home and Builder Center-Banilad, A.S 2 pieces
Fire Extinguisher Streets, Cebu City Fortuna St., Banilad, Mandaue City
Tel. No. 343 - 6991 / 273 – 6145
First Aid Kit Rose Pharmacy Berovan Marketing Inc. 1 pc.

Hernan Cortes St., North Road, Brgy. Tabok, Mandaue City
Mandaue City Tel. No.230 – 3800 / 230 – 3888

Office Supplies and Consumables
Table 24.
Office Supplies and Consumables
Description Image Supplier Alternative Supplier
Ballpens Visayan Educational Supply Corp. National Bookstore

Magallanes Street, Cebu City Upper Ground Floor, SM City Cebu,
North Reclamation Area, Cebu City
Tel.no. (032) 256 0875
Bond Paper Short Visayan Educational Supply Corp. National Bookstore

Tel.no. (032) 256 0875
Bond Paper Long Visayan Educational Supply Corp. National Bookstore

Tel.no. (032) 256 0875
Calculator Visayan Educational Supply Corp. National Bookstore

Tel.no. (032) 256 0875

Fastener Visayan Educational Supply Corp. National Bookstore

Tel.no. (032) 256 0875 North Reclamation Area, Cebu City
Folder Long Visayan Educational Supply Corp. National Bookstore

Folder Short Visayan Educational Supply Corp. National Bookstore

Liquid Eraser Visayan Educational Supply Corp. National Bookstore

Markers Visayan Educational Supply Corp. National Bookstore


Paper clips Visayan Educational Supply Corp. National Bookstore Upper

Magallanes Street, Cebu City Ground Floor, SM City Cebu,
Tel.no. (032) 256 0875 North Reclamation Area, Cebu
City
Visayan Educational Supply Corp. National Bookstore

Punchers Magallanes Street, Cebu City Upper Ground Floor, SM City
Tel.no. (032) 256 0875 Cebu, North Reclamation Area,
Cebu City

Staplers Magallanes Street, Cebu City Upper Ground Floor, SM City
Cebu City
National Bookstore
Price gun Ink Visayan Educational Supply Corp. Upper Ground Floor, SM City
Magallanes Street, Cebu City Cebu, North Reclamation Area,
Tel.no. Cebu City
(032) 256 – 0875
Price Gun Label Visayan Educational Supply Corp. Visayan Educational Supply
Magallanes Street, Cebu City Corp.
Tel.no. Magallanes Street, Cebu City
(032) 256 – 0875 Tel.no. (032) 256 – 087


Trodat Magallanes Street, Cebu City Upper Ground Floor, SM City
Dater Manual Stamp Cebu, North Reclamation Area,
Tel.no. Cebu City
(032) 256 – 0875

Manual Stamp Magallanes Street, Cebu City Upper Ground Floor, SM City
Tel.no. Cebu, North Reclamation Area,
(032) 256 - 0875 Cebu City
Octagon Computer Store

Octagon Computer Store
Epson L210 Ink Cartridge Level 3 Stall L325-325 Ayala
Level 3 Stall L325-325 Ayala Center
Center

Scissors Magallanes Street, Cebu City Upper Ground Floor, SM City
Cebu City

Scotch Tape Magallanes Street, Cebu City Upper Ground Floor, SM City
Cebu City

Staple Wire Visayan Educational Supply Corp. National Bookstore

Magallanes Street, Cebu City Upper Ground Floor, SM City
Cebu City
Trash Bag Educational Supply Corp. Lam Hong Paper Products

Magallanes Street, Cebu City 74-76 Plaridel St., Cebu City
Tel.No. 256 - 1162
Tel.no. 412 – 2807
(032) 256 - 0875
Gaisano Metro Colon Unitop General Merchandise

Comfort Room Freshener Colon Street, Cebu City Inc. Mandaue
M. L. Quezon Ave,
Maguikay, Mandaue Ciy
Tel.no. (032) 255 –2595
Scotch Brite Scrub Unitop General Merchandise Inc. Cebu Home and Builders
Sponge Mandaue Center – Banilad
M. L. Quezon Ave, A.S. Fortuna St., Banilad,
Maguikay, Mandaue City Mandaue City
Tel. No. 343 - 6991 /
Tel.no. 273 – 6145
(032) 255 – 2595

Unitop General Merchandise Inc.
Dish Washing Liquid Gaisano Metro Colon Mandaue M. L.
Colon Street, Cebu City QuezonAve,Maguikay,
Mandaue City
Tel.no. (032) 255 – 2595
Tissue Rolls Belmont Hardware Depot, P. Burgos Gaisano Metro Colon

Streets, Cebu City Colon Street, Cebu City
SM
Hypermarket
Pest Catch Sheet SM City Cebu Logarta Avenue, Subangdaku,
Supermarket Mandaue Cebu City

Detergent Powder Mandaue
Gaisano Metro Colon M. L. Quezon Ave,
Colon Street, Cebu City Maguikay, Mandaue City
Tel.no.
(032) 255 – 2595

Rags Gaisano Metro Colon Mandaue
Colon Street, Cebu City M. L. Quezon Ave,
Maguikay, Mandaue City
Tel.no.
(032) 255 – 2595

Sanitary Tools and Equipment
Table 25.
Sanitary Tools and Equipment
Broom Belmont Hardware Ace Hardware 1 piece

Depot, P. Burgos J Centre Mall
Streets, Cebu City Bakilid, Mandaue City
True Value Ace Hardware 5 pieces

Rat Cage Ayala Center Cebu J Centre Mall
Archbishop Reyes Bakilid, Mandaue City
Avenue, Cebu City
Cold HL Hand Dryer Belmont Hardware Ace Hardware 1 piece

Depot, P. Burgos J Centre Mall
Streets, Cebu City Bakilid, Mandaue City
Dustpan Belmont Hardware Ace Hardware 1 piece

Depot, P. Burgos
Streets, Cebu City J Centre Mall
Bakilid, Mandaue City

Trash Can Ace Hardware 3 piece

Belmont Hardware Depot, P. J Centre Mall
Burgos Streets, Cebu City Bakilid, Mandaue
Clean Up Belmont Hardware Depot, P. Ace Hardware 1 piece

Complete Set Mop Burgos Streets, Cebu City J Centre Mall
Bakilid, Mandaue City
Toilet Paper Belmont Hardware Depot, P. Gaisano Metro Colon 2 piece

Dispenser Burgos Streets, Cebu City
Liquid Soap Dispenser

Belmont Hardware Depot, P. Gaisano Metro Colon 1 piece
Burgos Streets, Cebu City

Belmont Hardware Depot, P. Gaisano Metro Colon 1 piece

Toilet Brush Burgos Streets, Cebu City
Belmont Hardware Depot, P. Gaisano Metro 1 piece

Plunger Burgos Streets, Cebu City Colon
Pail Belmont Hardware Depot, P. Gaisano Metro Colon 2 pieces

Burgos Streets, Cebu City

Production Equipment
Table 26.
Production Equipment

Unitop General
Black Hairnet Merchandise Inc. Gaisano Metro Colon
Mandaue 20 pieces
M. L. Quezon Ave,
Nutex Nitrile Gloves

Medium Size Berovan Marketing Inc. Gaisano Metro Colon
North Road, Brgy. 50 pieces
Tabok, Mandaue City
White slip-on rubber Unitop General Merchandise Inc.

Shoes Everet Shoe Center Inc. Mandaue
Colon St., Cebu City M. L. Quezon Ave, 12 pieces
Transparent Berovan Marketing Inc. Rose Pharmacy 20 pieces

PlasFace Mask North Road, Brgy. Hernan Cortes St., Mandaue City
Tabok, Mandaue City
Plastic Apron Berovan Marketing Inc. Rose Pharmacy

North Road, Brgy.
Tabok, Mandaue City Hernan Cortes St., Mandaue City 50 pieces

Description Image Supplier Alternative Supplier Quantity Useful Life
AJ Scale Center Unitop General 6 5 years

Digital Weighing Scale 201 V.Gullas St., Cor. Merchandise Inc.
Osmena Blvd. C.C. Mandaue
M. L. Quezon Ave,
Maguikay,
Mandaue City
Tel.no.
(032) 255 – 2595
Scooper Gaisano Metro Colon 6 7 years

Colon Street, Cebu SM City Cebu
City
Tiger Impulse Sealer Visayan Educational National Bookstore 6 5 years

Supply Corp. Ayala Center Cebu
Magallanes Street, Archbishop Reyes
Cebu City Avenue, Cebu City
Tel. no.
(032) 231 – 4006
Price Gun Visayan Educational National Bookstore 6 5 years

Supply Corp. Upper Ground Floor,
Magallanes Street, SM City Cebu, North
Cebu City Reclamation Area,
Tel.no. Cebu City
(032) 256 – 0875

Description Image Supplier Alternative Supplier Quantity Useful Life
Room Thermometer Berovan Marketing Rose Pharmacy 1 piece 5 years

Inc. Hernan Cortes St.,
North Road, Brgy. Mandaue City
Tabok, Mandaue
City
Tel. No.
230 - 3800
230 – 3888
Unitop General 6 5 years

Cebu New Gold Merchandise Inc.
Stainless Steel Basin 61F. Caderon St., Mandaue
Cebu City M. L. Que zon Ave,
Tel.no. Tel.no.
253-6859 (032) 255-2595
253-4123
Stainless Steel Table Engr. Wilson Mr. Vic Ocon 2 5 years

Porquiado Ibabao, Lapu-Lapu City
Contact no.
Contact no. 0928-501-7556
0915-9017-186

Store and Office Equipments
Table 27.
Summary of Store Equipment
Description Image Supplier Alternative Quantity

Supplier Useful Life
Datche OLX.com 1 10 years

POS APM
Machine Cebu,City
Customer’s Emperial Appliance Belmont Hardware 4 5

Table Plaza Depot, P. Burgos
A.C Cortes Street, Streets, Cebu City
Mandaue City
Tel. no.
(032) 420 – 1849
Customer’s Emperial Appliance Belmont Hardware 16 5

Chair Plaza Depot, P. Burgos
A.C Cortes Street, Streets, Cebu City
Mandaue City
Tel. no.
(032) 420 – 1849

Description Image Supplier Alternative Quantity
Supplier Useful Life
Octagon Computer EMCOR 3 5 years

Lenovo Stores Incorporated
H3050 2nd Flr Cyberzone A.C Cortes Branch
Computer SM City Cebu A.C Cortes
Avenue, Mandaue
Tel.no. City
236 - 653 Tel. no.
236 - 9307 (032) 420 – 2449
HP Laptop Octagon Computer EMCOR 4 5 years

Stores Incorporated
2nd Flr Cyberzone A.C Cortes Branch
SM City Cebu A.C Cortes
Avenue, Mandaue
Tel.no. City
236 - 653 Tel. no.
236 - 9307 (032) 420 – 2449
Racks Imperial, Mandaue Sungold 5 5 years

City Pajo, Lap- lapu
City
Koppel 2 Imperial, Mandaue Belmont Hardware 2 5 years

HP Window City Depot, p. Burgos
Type Air Streets, Cebu City
Conditioner

Alternative
Description Image Supplier Quantity Useful Life
Supplier
Filing Imperial, Mandaue Belmont Hardware 1 10 years

Cabinet City Depot, p. Burgos
Streets, Cebu City
Sungold 1 10 years
Locker Imperial, Mandaue Pajo, Lap- lapu City
City
Daniel Visayan Educational 1 5 years

Punch Card Merchandising, Supply Corp.
Attendance Sanciangco corner
Machine Leon Kilat St., Cebu Magallanes Street,
City Cebu City
Tel.no.
(032) 256 - 0875
EMCOR
Printer with Octagon Computer Incorporated
scanner Stores A.C Cortes Branch 1 5 years
Epson 2nd Flr Cyberzone A.C Cortes Avenue,
L210 SM City Cebu Mandaue City
Tel. no.
Tel.no. (032) 420 - 2449
236 - 653
236 - 9307

Alternative
Description Image Supplier Quantity Useful Life
Supplier
Emperial Appliance EMCOR
Office Table Plaza Incorporated 5 5 years
A.C Cortes Street, A.C Cortes Branch
Mandaue City A.C Cortes
Tel. no. Avenue, Mandaue
(032) 420 – 1849 City
Tel. no.
(032) 420 – 2449
Emperial Appliance EMCOR
XY Low Plaza Incorporated 5 5 years
Back Mesh A.C Cortes Street, A.C Cortes Branch
Office Chair Mandaue City A.C Cortes
Avenue, Mandaue
Tel. no. City
(032) 420 – 1849
Tel. no.
(032) 420 – 2449
EMCOR Emperial Appliance
Fujidenzo Incorporated Plaza 1 5 years
Hot and A.C Cortes Branch A.C Cortes Street,
Cold Water A.C Cortes Avenue, Mandaue City
Dispenser Mandaue City
Tel. no.
Tel. no. (032) 420 – 1849
(032) 420 – 2449

Raw Materials
Table 28.
Raw Materials
Description Image Supplier
Stand-Up Plastics
Plastics Cebu Printing and Packaging
Corporation
1054 Hernan Cortes St.

Wireless Subangdaku
,Mandaue City
Vacuum Fried Chips

Tacloban City

Material Handling Equipment
Table 29.
Material Handling Equipment
Equipment Picture Supplier Quantity Useful Life
Crate OLX.com 5 5 years
OLX.com 10 5 years
Plastic Food Container
Cebu Home and

Platform Trolley Builders Center – 3 10 years
Banilad
A.S. Fortuna St.,
Banilad, Mandaue City
Tel. No.
343 - 6991
273 - 6145
Vehicle
Table 30.
Company Vehicle
Useful Life
Equipment Image Supplier
Tornado 2E W/ Turbo Foton Cebu Inc. 5 years

Aluminum Van:Rivetless
(4JB1 2.8L Turbo New Ouano Ave.North
Engine, Payload: Reclamation Area
2Tons,Single Tire, Non- Mandaue City, Cebu
Aircon Cab,Alum Van
LxWxH (032) 420 4254 to 55
(11ft x 6ftx 6ft) www.foton.com.ph

4.2.4 Materials Inventory
Proper inventory procedures mandate assist in an absolute and
correct count of all the items purchased and to be sold. It is very
important to identify that the total quantity declared is the same to the
actual quantity of inventory. Thus, it will give a precise, legible, and
absolute inventory.
Table 31.
Materials Inventory
Equipment and Tools Recommended Materials Frequency

Inventory
Office Equipment Physical Counting Twice a month
Safety and Sanitary Physical Counting Once a month
Fixtures and Furniture Physical Counting Once every two months
Production Equipment Physical Counting Once a Week
Store Equipment Physical Counting Once a Week
Vacuum Fried Fruits Weighing Thrice a week.

Chips (Assorted)
Stand-Up Plastic Pouch Physical Counting Twice a week
Store and Production Policies:

1. Access to storage rooms are limited and only the in-charge personnel
has a great control of it.
2. Unauthorized personnel should be denied to storage rooms.
3. The store and the store rooms will be locked to avoid the bad
elements of the society to enter the facility.
4. Only the Sales Staffs are allowed to open the store and keep the
keys.
5. The store will be closed during non-working days.
6. Storage areas must be clean and safe especially that the products
being stored are foods to avoid contamination.
7. Vacuum Fried Fruits must be arranged in the designated racks
Checking of Machines and Equipment
Table 32. Machine/Equipment Inspection Guidelines
Frequency
Person in
Machine/Equipment of Control Point/s Corrective Action
Charge
Inspection
For digital scales,
The scale reading
contact the supplier
Every first has to match those
Production service center. For
Weighing Scale day of the of the weights put
Supervisor analog scales,
month on the scale during
manually calibrate
checking.
them.
When the fire
extinguisher is
shook, a sound has
to be heard to
ensure that the
Every first contents have not
Production hardened.
Fire Extinguisher day of the Contact supplier.
Supervisor The safety pin has
month
to be in place.
The pressure
gauge pointer has
to be at the green
area of the meter.

Repair and Maintenance
Table 33.
Repair and Maintenance for Machines and Equipment and Availability of Spare Parts
Tools/Equipment/ Availability of Spare Accessibility of Schedule for

Warranty Repair Services
Machines Parts Service Center Maintenance
Change oil:
Foton Cebu
Foton Cebu Corporation every 3 months
Delivery Van 2 years Corporation NRA Mandaue City
NRA , Mandaue City (July, October,
NRA, Mandaue City
January, April)
EMCOR Incorporated
Rozen Bldg. A. Cortes
1 year for parts A.C Cortes Branch Twice a year
Koppel Service Avenue, Mandaue City
Air Conditioner and services A.C Cortes Avenue, (November,
Center Mon – Fri
5 years for Mandaue City May)
7:30 am – 6:00 pm
compressor Koppel Service Center
Hernan Cortes St.,
Banilad, Mandaue City
Ng Khai Phone:(+6332) 346-

1 year for parts Ng Khai Once a year
Computer Development 2926 local 105 to 107
and services Development Corporation (May)
Corporation
Mon-Sat (except Public
Holidays) 8.30am –
5.30pm
Castilex Compound, B4
ASERCO Mandaue ASERCO Mandaue L2, North Cabancalan
Ave., Mandaue City
Printer Every 15,000
1 year Tel.no.
pages printed
Cebu Protech Provider Cebu Protech (032)345-2787 to 88/
Inc. Provider Inc. (32)345-1833

4.3 Material Requirement Planning
4.3.1 Product Structure Tree
Level 0
Level 1
Vacuum Fried Fruit

Chips
Stand-Up Plastic
Figure 59. Product Structure Tree
4.3.2 Material Specification
Table 34. Material Specification
Technical
Materials Description
Information
Vacuum Fried Fruit Diameter differs Buy

Chips
4”x7” x 2mm thick Buy

Plastic Standee
Pouches
8” x 10” x 2mm thick Buy
10” x 10” x 2mm thick Buy

4.3.3 Parts List
Table 35.
Parts List
Code Description Unit Ave.Monthly Consumption Annual Consumption

VFGC Vacuum Fried Guava Chips kg 4,897 58,764
GSP1 Stand-Up Pouch 100g pc 37,824 453,882
GSP50 Stand-Up Pouch 500g pc - -
GSP100 Stand-Up Pouch 1000g pc - -
VFPC Vacuum Fried Pineapple Chips kg 6,052 72,624
PSP1 Stand-Up Pouch 100g pc 30,394 364,728
PSP100 Stand-Up Pouch 1000g pc 406 4,866
VFJC Vacuum Fried Guava Chips kg 6,795 81,534
JSP1 Stand-Up Pouch 100g pc 25,666 307,992
JSP50 Stand-Up Pouch 500g pc 946 11,346
JSP100 Stand-Up Pouch 1000g pc 676 8,106
VFIMC Vacuum Fried Indian Mango Chips kg 7,288 87,456
IMSP1 Stand-Up Pouch 100g pc 27,828 333,930
IMP15 Stand-Up Pouch 150g pc 10,672 128,058
IMP100 Stand-Up Pouch 1000g pc 946 11,346
VFGYC Vacuum Fried Guyabano Chips kg 5,579 66,948
GYSP1 Stand-Up Pouch 100g pc 25,261 303,126

4.3.4 Bill of Materials
Table 36.
Bill of Materials
Raw Materials Unit Demand/month Cost Total Cost /Month Annual Cost
Vacuum Fried Guava

Vacuum Fried Guava Chips kg 4,897.00 280.00 1,371,160.00 16,453,920.00
Stand-Up Pouch 100g pc 37,823.50 2.50 94,558.75 1,134,705.00
Stand-Up Pouch 150g pc 5,403.50 2.80 15,129.80 181,557.60
Stand-Up Pouch 500g pc 3.50 - -
Stand-Up Pouch 1000g pc 5.00 - -
Vacuum Fried Pineapple
Vacuum Fried Pineapple Chips kg 6,052.00 300.00 1,815,600.00 21,787,200.00
Stand-Up Pouch 1000g pc 405.50 5.00 2,027.50 24,330.00
Vacuum Fried Jackfruit
Vacuum Fried Guava Chips kg 6,794.50 260.00 1,766,570.00 21,198,840.00
Stand-Up Pouch 500g pc 945.50 3.50 3,309.25 39,711.00
Stand-Up Pouch 1000g
Vacuum Fried Indian Mango
Vacuum Fried Indian Mango Chips kg 7,288.00 200.00 1,457,600.00 17,491,200.00
Stand-Up Pouch 1000g
Vacuum Fried Guyabano
Vacuum Fried Guyabano Chips kg 5,579.00 220.00 1,227,380.00 14,728,560.00
Total Cost 98,468,964.60

4.4 Production Capacity
Capacity can be defined as: the maximum output that a business can produce in a given period with the
available resources.
Table 37.
Production Capacity
Number of Available Time in Total Available Required Average

Workers Working Seconds Time in Seconds Time per Monthly
Period in Pack in Sec Output Demand Differential
Month
6 26 702,000.00 4,212,000.00 95 44,336.84 40,000 4,336.84

4.5 Production Process
4.5.1 Manufacturing Process Type
The vacuum fried fruit chips will be packed according to its fruit
category, therefore will be considered as per batch production.
Batch production is used in many different ways and is most
suited to when there is a need for a quality/quantity balance. This
technique is probably the most commonly used method for organizing
manufacture and promotes specialist labor, as very often batch
production involves a small number of persons. Batch production occurs
when many similar items are produced together repeatedly. Each batch
usually specified lot sizes goes through one stage of the production
process before moving onto next stage.
4.5.2 Process Flow Chart (Major Process Repacking)
Figure 60. Process Flow Chart (Repacking)

4.5.3 Precedence Table
Table 38.
Precedence Table (Repacking)
Time in sec
Activity Description Predecessor

100g 150g 250g 500g 1000g
A Scooping and 35
Weighing - 30 32 38 45
B Packing
A 30 32 34 36 40
C Sealing
C 30 31 32 34 40
D Storing 9
D 5 7 11 13
Total Time 95 102 110 119 138
The time above is an assumption or allocation set by the company, a total
of 95 seconds in packing a piece of vacuum fried fruit product for 100gram pack ,
102 seconds for 150 gram pack , 110 seconds for 250 gram-pack, 119 seconds
for 500 gram-pack and 138 seconds for 1000gram-pack.

Hub Cashiering Process
Figure 61. Process Chart (Cashiering)
4.5.4 Work Instruction and Precedence Diagram
Table 39. Precedence Table (Cashiering)
Activity Description Precedence Allotted Time
A Greet Customer
- 5
B Scan Product Barcode A 5
C Notify Customer How

much to pay B 5
D Receive and Notify

Cash Received C 5
E Give Change D 10
F Pack Vacuum Fried E 10

Fruits
G Greet customer F 5

4.5.5 Assembly Process Chart
Vacuum Fried Tiger

Standee Pouch
Fruit Impulse
Plastic
Chips Sealer
Get Get Get
1
Fill
2
Seal
Get
3
Store
Figure 62. Assembly Chart

4.6 Work Cycle
4.6.1 Cycle Time
Cycle Time (Repacking) = Activity A + Activity B...+ Activity n…
=30 sec + 30 sec +30 sec+ 5 sec
= 95 seconds
Cycle Time (Cashiering) = Activities
= 45 seconds
4.6.2 Number of Workstation
The number of workstation is the total number of work center
use by each worker that serve as their station in the production.
Table 40.
Number of Workstation
Workstation Description Worker Assigned Headcount

Number
1,2,3,4,5 &6 Weighing and

Packing
Production Worker 6
Sealing and Storing
4 Selling Cashier 1

4.6.3 Idle Time of the Line
Idle time of the line is the time consumed by the operator of
having a non-value adding activities.
Table 41.
Idle Time of the Line
Workstation Workstation Process Total Number of Idle

Number Description Involved Observed Workers Time
Time (sec)
Weighing
1 Repacking
2 Packing
3
4 Sealing 42,400 6 800
5 Seal and
6 Store Section Storing
6 800
To calculate the percentage idle time of the line , the above formula will be used.

4.6.4 Efficiency of the Line
Efficiency signifies a level of performance that describes a
process that uses the lowest amount of inputs to create the greatest
amount of outputs. Efficiency relates to the use of all inputs in producing
any given output, including personal time and energy. Efficiency is a
measurable concept that can be determined by determining the ratio of
useful output to total input. It minimizes the waste of resources such as
physical materials, energy and time, while successfully achieving the
desired output.
Efficiency of the line determines how productive the line works. It
will also define the quality of the line to be able to do a task successfully
without wasting time and energy.
The efficiency of the line is calculated as follows:
Efficiency of the line = 100% - Percent (%) Idle Time
Efficiency of the line = 100% - 3.70%
Efficiency of the line= 96.28 %

4.7 Daily Production Schedule
Table 42.
Daily Production Schedule
Time Production Process/Activities
8:00-8:30 Inspection: Equipment, Fried Fruit

Chips and Plastic
8:31-12:00 Normal Production Operation
12:00-1:00 Lunch Break
1:00-4:00 Normal Production Operation
4:00-5:00 Rack Display
Daily Production Report
A daily production report will be done by the team leader and will
be verified by the production supervisor to sum the output of the
production workers per day.

DAILY PRODUCTION REPORT
Date: Control Number:
Product Category:
Production Time:
Production Output
Variant Quantity Packed Receiving Report

Number
100g
150g
250g
500g
1000g
Prepared by:
Approved by:
Figure 63. Daily Production Report Sample

DAILY SALES REPORT
Date: Control
Number:
Product Category:
Sales Output
Variant Quantity Sold Total Cost
100g
150g
250g
500g
1000g
Total
Sales
Prepared by:
Approved by:
Figure 64. Sales Report Sample Form

4.8 Design of Work Systems
4.8.1 Workstation Design
Figure 65. Workstation Design
4.8.2 Work Environment
It describe as the surrounding conditions in which an employee
operates. The work environment can be composed of physical
conditions, such as room temperature, or equipment, such as personal
computers. It can also be related to factors such as work processes or
procedures.
In Fruittyssential Hub, just like any other food shops it has
adequate ventilation that provides the staffs and customers with ease
and comfort. We make sure that our place maintains a clean, healthy

and friendly environment that enables the customer to be relaxed as they
enjoy our products.
4.8.3 Housekeeping and Safety Policies
Working in a clean environment can get the employees in the
mood to work to the best of their ability and can give them a sense of
pride. Below are the housekeeping and safety policies within the
production and hub to ensure safe and healthy environment:
Table shows the guidelines for checking machines and
equipment to ensure safety upon using these items. Control points are
presented so that the inspector will be guided as to what areas are most
prone to damage. Corrective actions are also shown to instruct the
inspector on what to do when the control points are violated.
5S in the Workplace
The 5S strategy will be used by the company to ensure that the
production area is in order. A checklist similar to the one presented in
Table will be used by the leadman to assess the degree of organization,
cleanliness and safety in the different areas involved in the production of
vacuum fried fruits. Food contact surfaces are given emphasis during the
5S. This is to make sure that no contamination will occur in the process
of manufacturing the product. The 5S will be conducted every week.

5S CHECKLIST
Date: ____
Item Yes No Remarks
Is everyone wearing proper

safety equipment?
Is unused equipment and
machinery eliminated from the
area?
Are up to date work instructions
available and used at the
workstations?
Is the floor and machinery free
from all foreign material?
Are machines, tools and
equipment clean and in good
repair?
Are sources of dust and dirt
under control?
Are cleaning and checking
schedules available and in
documented use?
Are aisles and doorways free
from material and blockage?
Are storage places for all tools
and equipment designated and
marked?
Are food contact surfaces free
from dirt?
Others:
Comments:
Inspected By:
Figure 66. Sample Checklist for the Assessment of Organization,
Cleanliness and Safety in Production

For audits that will be conducted by the FDA every two years, a micro-
biological analysis of the workplace will be done by a third party analyst.
Personnel Safety and Hygiene
All workers inside the production area must wear hairnets, aprons
and white rubber slippers. Masks should also be worn during the
repacking process. Workers who are suspected of having or having a
disease that can be transmitted through food should be prohibited from
entering into the production area. Illness of symptoms of the illness must
be reported to the production supervisor. Personnel must always wash
their hands when they come into contact with food or after they use the
toilet. No jewellery or other accessories that have the dangers of being
mixed with the food are allowed inside the production area.
Plant Safety
Fire extinguishers are situated 20 feet away from areas prone to
fire and should only be used in case of fire.
Pest Control
Rat cages will be situated near the entrances of production
(repacking area) storage area and rack area of the store to prevent rats
from entering in thus ensuring food safety within the areas. Glue traps for
flies will also be situated all around the production area. Monitoring of the
cages and traps will be done by the use of a Pest Control Monitoring
Form. Above table shows a sample monitoring forms (see Appendix I as
to where the cages and traps will be situated within the plant). Since the

team leader will also serve as the utilities man he, will be accountable for
the monitoring and maintaining of the laid out rat traps and glue traps.
Pest Control Monitoring Form

Date: __________
Location Rats Flies Others

Code
Remarks:_______________________________________________________
_______________________________________________________________
_______________________________________________________________
Corrective
Action:_________________________________________________________
_______________________________________________________________
_______________________________________________________________
Figure 67. Sample Pest Control Monitoring Form

4.9 Management of Quality
Quality control requires the business to create an environment in
which both management and employees strive for perfection. This is done
by training personnel, creating benchmarks for product quality, and testing
products to check for statistically significant variations.
4.9.1 Attributes and Variables of the Product
Product attributes is one of the characteristics that define a
particular product and will affect a consumer's purchase decision. It also
refers to those quality features that conforms or do not conforms
specifications. Also, variables refers to the specifications given to a
certain feature of part of the product and will be changed due to different
situation.
Table 43.
Product Attributes and Variables
Attributes Variables
 Chip Fragility  Plastic Height and Width
 Plastic Prints  Weight
 Chip crunchiness

4.9.2 Quality Control Points
The attributes and variables of the SR&A Fruit Essential vacuum
fried fruit product that needs a serious attention before consumer
consumption are the following:
 Plastic Prints
 Chips quality that pertains to: chip crunch and appearance,
structure
 Plastic height, width and length standards
 Weight of chips
The control points will be checked upon arrival of the raw
materials to the company.
4.9.3 Procedures for Controlling Quality
SR&A aims to prioritize quality of each pack before it reaches to a
hand of a customer and before a single chip will be loaded to the mouth.
Receiving of Raw Materials
A random sample of each raw material (vacuum fried fruit chips)
should be taken by the Quality Inspector upon unloading of items from
the container van upon arrival of the raw materials to check whether the
items received were indeed in good condition and suitable for
consumption. The sensory properties of the items will be inspected
through a checklist .If found “NO” is the answer of the sensory checklist,
the supplier will be notified and possibly the raw materials will be
returned.

Checklist for Sensory Properties of Raw Materials
(Vacuum Fried Fruit Chips)
(Upon Van Unloading)
Date Received:
Date Inspected:
Inspected By:
Vacuum Fried Fruit Chips YES NO REMARKS
Is the pack sealed upon receipt
of order?
Are the chips crisp and crunchy?
Are chips broken?
Checklist for Sensory Properties of Raw Materials

(Plastic Standee Pouches)
Plastic Standee Pouch YES NO REMARKS

Are sizes of the plastic conforms
to variants requirement volume?
Do prints are clear and glossy?
Does it contain all the required
prints?
Figure 68. Sample Checklist for Sensory Properties of Raw Materials
One way of controlling quality is the used of widely known
statistical quality control tools. The following tools will be used by
SR&A Fruit Essentials Co., to monitor the processes and minimize its
variation. A control chart is a tool used for monitoring the production
process. It is also called process chart or quality control chart. It is a

graph that shows whether a sample of data falls within the common or
normal range of variation. A control chart has upper and lower control
limits that separate common from assignable causes of variation.
Attribute Control Chart
P-chart
 P-charts are used to measure the proportion of items in a sample
that are defective.
 P-charts are appropriate when both the number of defectives
measured & the size of the total sample can be counted.
 Example: Proportion of broken cookies in a batch
P-chart formula
Where:

P-chart: APPLICATION
Constructing a P-chart
Figure 69. P-Chart Sample
Variable Control Chart

 A control chart for variables is used to monitor characteristics that
can be measured & have a continuum of values, such as height,
weight or volume.
Mean Chart
Mean (x-Bar) Chart
It is used to monitor changes in the mean of a process.
Where
= the average of the sample means
z = standard normal variable (2 for 95.44% confidence, 3 for
99.74% confidence)
= standard deviation of the distribution of sample means,
computed as /
= population (process) standard deviation
n = sample size (number of observations per sample)
CONTROL CHARTS FOR VARIABLES: MEAN CHART
 Mean (x-Bar) Chart

74
Constructing a MEAN CHART
Figure 70. Mean Chart Sample
4.9.4 Policies for Defects or Rejects
 Reject /Rotten Fruit Chips
Reject fruit chips will automatically be disposed due to
its organic component and will be turn-over to beneficiary
community, the Brgy. San Roque, Cebu for organic
composting.
 Low Quality Plastic Print

The print of the plastic should be clear and glossy
.Unclear prints should be returned and should be reprinted
by the printing press.
 Vendor Quality
Before the supplier and company start their
transactions, the company will provide a contract that the
supplier will have to sign. This contract contains the terms
and agreement between the two parties to ensure good
quality of the raw materials delivered and the accountability
of the suppliers. It is highlighted in the contract that the
Vacuum Fried Fruit Chips supplier, given that there are
rejects in their deliveries, the supplier will be notified and is
entitled for replenishment of the said chips with no incurred
cost. The reject chips will be documented and then will be
turned over to the beneficiary for organic composting. The
suppliers should meet the set parameters by the company
most specially upon shipment of vacuum fried fruit chips. It’s
agreed that the supplier should meet the projected quantity
orders of the company and delivers with the negotiated lead
time.
4.10 Maintenance of Facilities and Equipment
Maintenance of Facilities and Equipment covers all range of
activities that will give assurance that the facilities and equipment can be

used to their required serviceable life. And it can be used safely of the
employees.
4.10.1 Maintenance of Service Facilities
Table 44.
Maintenance of Facilities
Equipments Recommended Maintenance Technique Frequency of Maintenance
POS Machine Check the functionalities. Once a month
Computer Check the hardware and its functionality. Once a month
Air Check its motor parts. Once every two months

conditioner
Racks Clean and wipes dust. Everyday
Check its loads capacity.
Tables Check its stand. Every other day
Chairs Check its stand. Twice a month
Tray Free from leaks and leftovers. Everyday
The proponents recommend of hiring a maintenance personnel of service
facilities such as POS Machine, air conditioner, computer, and wall fan. While,
the other service equipments are maintained by the employees.

4.10.2 Maintenance of Non-Production Facilities
The non-production facilities play a vital role of the business in
which this includes the building, drainage system, and the electrical
system.
The Building
Building is a very important facility in a business. Without
buildings, production would not be possible since it is where the
operation takes place. It should be maintained properly for it provides a
safe working place for the workers as well as the people in the business.
Maintenance of buildings is costly but sometimes money doesn’t matter
if safety is at stake. Materials that are used in buildings become obsolete
as time passes by. It might be affected due to environmental factors. So
it is necessary to regularly check the condition of the buildings. Cleaning
of the workplace is very useful in maintaining the usefulness of the
facility. Even though it is a simple act of maintaining the building, it
provides a greater effect in terms of safety. Activities that are included in
cleaning are sweeping of workstation, cleaning restrooms and others.
Inspecting and checking of infrastructure once a week is also useful.
Personnel who have knowledge in buildings can act as inspector who
will provide complete assessment on the condition of the buildings.
Problems that needs to be assessed includes roof structure, windows,

building interiors and exteriors, floors, walls, plumbing and safety
equipment.
The respective areas should be check regularly. The inspector should
check if the structure is in good conditions. If the stability of the structures is not
in good condition, immediate maintenance should be done.
 Floors should be always clean.
 Windows should be replaced if broken.
 Roofs should be check in case of leaking.

Building Maintenance Card
Date:
Inspected by:
Level
1. Needs Urgent Repair
2. Unsatisfactory
3. Satisfactory
4. Good
No. Miscellaneous 1 2 3 4 Remarks Location /

Site
1 Leaks
2 Structure
3 Roofing
4 Building Interior
Window
Glass door
Ceilings
Others : Specify
below
5 Building Interior
Bricks
Concrete Blocks
Walls
Plaster / Paint
Others : Specify
Below
Comment:
Figure 71. Building Maintenance Card

The Drainage System
Drainage is another non-production facility that needs to be
maintained. It is where the solid and liquid wastes are disposed.
Drainage System is a system of watercourses or drains for carrying off
excess water. Proper drainage system is important for it avoids floods
during rains. Drainage should not be disposed with solid waste because
it will cause clogging. No proper drainage system can affect the
reputation of the company. Listed below are some of the processes in
maintaining the drainage system.
a. Removing materials that can cause of clogging up of drainage.
b. Solid waste should not be disposed in the drainage.
c. Checking of leaks on the pipes that can cause flood.
d. Clean the drainage.
Figure 72. Drainage System

Drainage Maintenance Card
Date:
Inspected by:
Level
2. Unsatisfactory
3. Satisfactory
4. Good
Site
1 Debris/ Trash
2 Spillway
3 Piping
4 Sewage
System
Others :
Specify Below
Comment:
Figure 73 . Drainage Maintenance Card

The Electrical System
Electrical System is a facility that talks about equipment that
provides service such as heat and electricity. Electricity is dangerous so
it is necessary to maintain the electrical system for the safety of all. No
proper maintenance of electrical systems might lead up to accidents and
injuries. Common accidents that is caused by no proper maintenance
are fire from short-circuit wires and electrocution from skinned wires. For
that reason, strict maintenance of the electrical system is recommended.
Listed below are some of the processes in maintaining the electrical
system.
a. Checking of equipment that uses electricity like machines.
b. Checking of connections to avoid short circuits that lead to fire
c. Skinned and damaged wires should be replaced with new wires.
d. Do not try to fix electrical malfunctions if you have no knowledge
about electricity for it can cause accidents.
e. When working with electricity you should have a buddy system in
case of emergency.
f. Use proper tools when working with electricity.

Figure 74. Electrical System

Electrical Maintenance Card
Date: Inspected by:
Level
2. Unsatisfactory
3. Satisfactory
4. Good
Site
1 Wirings
2 Switches
3 Light Fittings
Others :
Specify Below
Comment:
Figure 75. Electrical Maintenance Card
4.11 Inventory Management
Inventory management is an integral part of any successful
business, serving to provide uninterrupted production, sales and/or
customer service at a minimum cost. Inventories usually consist of goods,

raw materials and finished products.
Inventory management is an integral part of any successful
business, serving to provide uninterrupted production, sales and/or
customer service at a minimum cost. Inventories usually consist of goods,
raw materials and finished products. Since each of these elements is
essentially equal to money for the business owner, effective management
of these assets is key to making a profit and having optimum stock of items
in your inventory.
An inventory management consists of:
• A purchase plan to acquire necessary items for inventory management,
to ensure neither too much nor too little is purchased. (See Appendix N)
• A starting count of your inventory stock.
• Inventory labels that are easy to read.
• Unique and short item numbers for each item.
• Item descriptions those are well-defined and clear.
4.11.1 Inventory Control Procedure for Raw Materials
These are the inventory procedures to be employed by SR&A
Fruit Essentials :
 Physical counting of packs
 Weekly weighing of vacuum fried fruit chips
 Regular barcode scanning to check the available quantity of a
particular variant

Models of Inventory Control
1. Economic Order Quantity (EOQ). Economic Order Quantity is
the order quantity that minimizes total holding and ordering costs for the
year. Even if all the assumption don’t hold exactly. The economic order
quantity gives us a good indication of whether or not current order
quantities are reasonable.
2. Reordering Point (ROP). Reordering point is the level of
inventory which triggers an action to replenish that particular inventory
stock. It is normally calculated as the forecast usage during the
replenishment of lead time and usage rate per day plus safety stocks.
3. Safety Stocks. Safety Stocks is an additional quantity of an
item held in inventory in order to reduce the risk that the item will be out
of stocks. The remaining inventory between the times that an order is
placed and when new stock is received. If there are not enough
inventories then a shortage may occur. Safety stock is a hedge against
running out of inventory. It is an extra inventory to take care on
unexpected events. It is often called buffer stock.
Economic Order Quantity
Economic order quantity (EOQ) is the order quantity that
minimizes total inventory holding costs and ordering costs. It is one of
the oldest classical production scheduling models. The framework used
to determine this order quantity is also known as Wilson EOQ Model or

Wilson Formula.
Economic order quantity applies only when demand for a product
is constant over the year and each new order is delivered in full when
inventory reaches zero. There is a fixed cost for each order placed,
regardless of the number of units ordered. There is also a cost for each
unit held in storage, commonly known as holding cost, sometimes
expressed as a percentage of the purchase cost of the item.
Underlying Assumptions
1. The ordering cost is fixed.
2. The rate of demand is known and spread evenly throughout the
year.
3. The lead time is fixed.
4. The purchased price of the item is constant (i.e., no discount is
available).
5. The replenishment is made instantaneously; the whole batch is
delivered once.
6. Only one product is involved.
EOQ Formula:
Where:
DA= Monthly Demand P= Price
Co= Ordering Cost CA= Carrying Cost
54.52 pcs

Table 45.
Economic Order Quantity
Raw Materials Unit Ave.Monthly Demand Annual Actual Demand Ordering Cost Price/Unit Carrying Cost EOQ
Vacuum Fried Guava
Vacuum Fried Guava Chips kg 4,897 58,764 3.00 280.00 1.97 25
Stand-Up Pouch 100g pc 37,824 453,882 3.00 2.50 1.97 744
Stand-Up Pouch 500g pc - - 3.50 1.97
Stand-Up Pouch 1000g pc - - 5.00 1.97
Vacuum Fried Pineapple Chips kg 7,707 92,484 3.00 300.00 1.97 31
Stand-Up Pouch 1000g pc 811 9,732 3.00 5.00 1.97 77

Raw Materials Unit Ave.Monthly Demand Annual Actual Demand Ordering Cost Price/Unit Carrying Cost EOQ
Vacuum Fried Guava Chips kg 6,795 81,534 3.00 260.00 1.97 31
Vacuum Fried Indian Mango Chips kg 7,288 87,456 3.00 200.00 1.97 36
Vacuum Fried Guyabano Chips kg 5,579 66,948 3.00 220 1.97 30
Stand-Up Pouch 250g pc 4,728 56,736 3.00 3 1.97 240
Stand-Up Pouch 1000g pc 135 1,620 3.00 5 1.97 31

Table 46.
Ordering Cost
Ordering Cost
Product Mode of Itinerary DistanceTravel/ Total Cost

Transport Fuel used
Vacuum Land travel Company to .5km/ .5 liter P 22.50

Fried Fruit Cebu Port 1
Chips and vice
versa
Plastic Land Travel via Supplier to 1km/1 liter P 45.00

Standee Fruityssential
Pouches Hub
Total Transportation Cost P 67.50
Communication Cost
Product Mode of Call Communication Total Cost

Communication Destination Cost
Vacuum Telephone Cebu to 10.00 5.00

Fried Fruit Tacloban
Chips
Vacuum Telephone Cebu Area 10.00 5.00

Plastic
Total Communication Cost 20.00
Ordering Cost=Transportation Cost + Php 87.50

Communication Cost

Carrying Cost
25 %
Php 51.13

Reordering Point
Reordering point (ROP) is the level of inventory which triggers an
action to replenish that particular inventory stock. It is normally
calculated as the forecast usage during the replenishment lead time plus
safety stock. In the EOQ (Economic Order Quantity) model, it was
assumed that there is no time lag between ordering and procuring of
materials. Therefore the reorder point for replenishing the stocks occurs
at that level when the inventory level drops to zero and because instant
delivery by suppliers, the stock level bounce back.
Solving for ROP (Reordering point) is expressed through this equation;
ROP = (Lead time × Usage Rate per day) + Safety Stock
Where:
Lead Time - is the time interval between ordering and receiving the order
Usage Rate – is the number of units used per day for the manufacture of
product
ROP = (Lead time × Usage Rate per day) + Safety Stock
= ( 1 Day x 87 pcs) + 3 packs
= 90 pcs

Table 47.
Reordering Point
Raw Materials Unit Average Monthly Demand Daily Demand Lead Time Safety Stock ROP
Vacuum Fried Guava
Vacuum Fried Guava Chips kg 4,897 188.35 2 19 396
Stand-Up Pouch 100g pc 37,824 1454.75 1 73 1,527
Stand-Up Pouch 150g pc 5,404 207.83 1 10 218
Stand-Up Pouch 500g pc - - -
Stand-Up Pouch 1000g pc - - -
Vacuum Fried Pineapple Chips kg 6,052 232.77 2 23 489
Stand-Up Pouch 1000g pc 406 15.60 1 1 16

Raw Materials Unit Average Monthly Demand Daily Demand Lead Time Safety Stock ROP
Vacuum Fried Guava Chips kg 6,795 261.33 2 26 549
Vacuum Fried Indian Mango Chips kg 7,288 280.31 2 28 589
Vacuum Fried Guyabano Chips kg 5,579 214.58 2 21 451

Safety Stock
Safety stock (also called buffer stock) is a term used by
logisticians to describe a level of extra stock that is maintained to
mitigate risk of stock outs (shortfall in raw material or packaging) due to
uncertainties in supply and demand. Adequate safety stock levels permit
business operations to proceed according to their plans. Safety stock is
held when there is uncertainty in the demand level or lead time for the
product; it serves as an insurance against stock outs. Safety stock can
be solved using this formula:
Safety Stock = (Maximum Daily Usage − Average Daily Usage) ×
Lead Time
= (100-87) x 1 Day
= 3 packs

Table 48.
Safety Stock
Raw Materials Unit Ave.Monthly Demand Max Daily Consumption Daily Demand Lead Time Safety Stock
Vacuum Fried Guava
Vacuum Fried Guava Chips kg 4,897 198 188 2 19
Stand-Up Pouch 100g pc 37,824 1,527 1,455 1 73
Stand-Up Pouch 150g pc 5,404 218 208 1 10
Stand-Up Pouch 500g pc -
Stand-Up Pouch 1000g pc -
Vacuum Fried Pineapple Chips kg 7,707 311 296 2 30
Stand-Up Pouch 1000g pc 811 33 31 1 2

Raw Materials Unit Ave.Monthly Demand Max Daily Consumption Daily Demand Lead Time Safety Stock
Vacuum Fried Guava Chips kg 6,795 274 261 2 26
Stand-Up Pouch 100g pc 25,666 1,037 987 1 49
Vacuum Fried Indian Mango Chips kg 7,288 294 280 2 28
Vacuum Fried Guyabano Chips kg 5,579 225 215 2 21
Stand-Up Pouch 100g pc 25,261 1,020 972 1 49

Purchasing Order Point
Stock Counting
PR and PO
Preparation
Phone Call Order
Shipment
Receiving
Warehousing
Figure 76. Purchasing System

4.11.2 Inventory Control for WIP and Finished Goods
Repacked Vacuum Fried Fruits
The repacked vacuum fried fruits will then be registered to Points-
of-Sale Machine to keep track of the quantity produced for easy control
of inventories.
4.11.3 Inventory Control Procedure for Operating and Maintenance
Supplies and Company Asset
A weekly physical check or stock counting of the operating and
maintenance supplies and other company asset of the Fruittyssential
Hub and other SR&A Co. assets.

4.12 Supply Chain Design
All Natural Essentials Inc. Delivery
 All Natural Essentials is  Deliver the ordered vacuum
manufacturer of the fried fruit products to the
vacuum fried fruit products hub.
Customers/Locals SR & A Fruit Essential Co.
 The main consumer of  The hub will be the
the product. one to repack and be
displayed and sell
through Fruittyssential
Hub for the customer.

4.12.1 Purchasing Procedures
The following are the guidelines and procedures for purchasing
the raw materials for the SR&A Fruit Essentials Company:
 Preparing Purchase Requisition Form
The purchase requisition form is the document used to inform the
purchasing officer those goods or services are desired for the
Fruittyssential Hub. It is the basis for the preparation of a purchase order.
Figure 77. Purchase Requisition

 Review Requisition for Accuracy, Completeness and
Availability of Funds
The purchase requisition is to be reviewed by the manager
for accuracy and completeness and by accounting for availability of
funds.
 Purchase Order Preparation and Distribution
The purchase order is used to initiate and control
purchases. It should thus be completed and approved prior to
making a purchase so that effective managerial control can be
continually maintained. A purchase order (shall be prepared by the
purchasing officer/ manager based on informed price quotations for
items. The purchasing officer/ manager will oversee and sign
purchase orders.

Figure 78. Purchase Order

 Receiving of Purchased Order
The receiving copy of the purchase order, the delivery ticket/
docket, or some other written verification should be sent to the
staff.
START
Prepare the copy

/ receiving copy of
the purchase order
when items arrive
Check the items for

condition and
quantity
Compare and check

the items if it
matches to the
receiving copy of the
purchase order and
delivery docket
Are there any

YES problems with NO
the shipment?
Call the attention of

Sign and put the
the purchaser who
date on the receiving
will resolve it on the
report in boxes
vendor
END
Figure 79. Purchased Order Receiving

 Processing Invoices for Payment
This procedure describes the process through which the
individual documents verifying purchases and receipt of goods are
brought together to assure valid payment. Appropriate files are
also identified and it will be processed by the store manager.
START
Receive the purchase

order copy from the
purchaser
Check to see if the budget

limitations for purchases have
not been exceeded and if
authorized approvals are
included
Obtain the receiving report

(packing slip, delivery ticket,
or signed purchase order
copy) and compare
quantities received with
quantities ordered in PO
Attach to purchase
requisition and
purchase order copy
Receive the vendor’s

invoice, check
extensions, price and
quantity against PO
and receiving report
Attach to PR and PO
copy and related
Receiving report
Check the store

budget to ensure
funds are still
available
Verify if the
expenditure was
received by the
purchaser
Prepare checks
indicating on the check
stub the account
number and description
of purchase
Sign the checks

for the purchased
order
END
Figure 80. Payment Processing Invoices

4.12.2 Warehousing Procedures and Policies for Raw Materials and
Finish Good Products
Fruittyssntial Hub Warehousing Procedures
Fruittyssential Hub is committed on maintaining efficient and
cleanliness standards in regards to the safe collection and storage of
the products. A clean and organize warehouse prevent
contamination on the product and can save time and resources for
repacking of the products.
 First In, First Out (FIFO)
Follow the First In, First Out (FIFO) process for all food so that
older stock is used before new supplies. You should:
 Move old stock forward and put the new supplies behind it
 Lift existing stock up and put new supplies under it
 Create a new storage area or stack for the new stock and
clearly label it
 Read the use-by or ‘best before’ dates on stock to decide
which items to place in front
 Label stock with delivery date, use-by date or ‘use first’
labels on older stock.
 Disposing of Damaged Supplies
Checking stock levels can help to find out those spoiled food,
food that is out of date, food in damaged containers. The Food
Safety Code requires workplaces to keep food that is to be

disposed of separate from other food. It must be labelled until it
can be:
 destroyed or disposed of so it can’t be eaten by humans
 return to the supplier
 Check for ageing or deteriorating stock
When checking stock you will be physically handling
many items, so it is a good opportunity to also make these
checks:
 Check the use-by dates on existing stock
 Check for signs of pest and rodent (rat and mouse) attack or
infestation

Table 49.
Warehousing Responsibilities
Duties and
Procedures Personnel
Responsibilities
Inspect and check the

Receiving of raw materials Quality Engineer
quantity and quality of
the items
Storing of raw materials Production Worker Store the items

according to FIFO
Request materials
needed in the
Requisition of Raw Materials Purchaser
operation by filling up
the requisition slip or
form
Check the availability

of the supply and
Issuance of Raw Materials Team Leader
issue the specific
volume of materials
requested.

4.13 Waste Management Practices
4.13.1 Types of Wastes Generated
The wastes generated within the hub are ;plastic pouches of the
vacuum fried fruit products (major waste generated), the plastic bottles
and other disposable waste from the consumer .
Methods of Waste Disposal
The major waste that the company generated is the plastic pouches
which will be keep or thrown to a designated trash2cash bin.
Policies for Waste Management
The waste of the company just be treated justly in a right and just
manner as to minimize the ill effects to mother nature. At the end of store
hours, the trash will then be segregated and the classified if there will be
mixed up of other waste to stand up pouches. Stand pouches will be put
to designated trash2cash sacks ready for pick-up of the negotiated
barangay for livelihood projects.
4.14 Plant Layout
The plant layout is one of the most important factor of having a
business. This will reflect the operation or services offered of the business.
This will affect the flow of the operation depending of the distance and
space requirement of the tools and equipment used. In this section, this will
determine the the provided space allocation of each area. The

Fruityssential Hub is composed of a counter,comfort room, dishwashing
area, storage room, eating area, counter and the racks area where the
products are being displayed.
4.14.1 Space Requirement
This section section shows the spaces provided in each area for
the operation that takes place. It has an enough space for the
equipments and tools to be used for the operation. Thus, this section
mus be done efficiently for the flow of operation and to avoid insufficient
space.
Figure 81. Plant Top Perspective View

4.14.2 Worksheet and Activity Relationship Diagrams
Relationship Diagramming is a central technique in Systematic
Layout Planning. The activity relationship diagram converts vowel-letter
ratings on the relationship chart to a graphic visualization of desired
closeness among activity areas. The closeness of the area are
dependent of the operations that takes place.
Figure 82. Activity Relationship Diagram

Table 50.
Degree of Importance Table
Code Degree of Imprtance

A Absolute Necessary
E Especially Important
I Important
O Ordinary Closeness
U Unimportant
X Closeness Undesirable
No. of Relationship ; where N is the no. of department or
areas
No. of Relationship = = 21
Closeness Code Distribution:
 Not more than 5 percent should be an A and X
 No more than 10 percent should be E
 No more than 15 percent should be I
 No more than 20 percent should be O
 About 50 percent of the relationships should be U
A = 5% ( Number of Relationships)
= 5 % (21)
=2
X = 5% ( Number of Relationships)
= 5 % (21)

=2
E = 10% ( Number of Relationships)
= 10 % (21)
=3
I = 15% ( Number of Relationships)
= 15 % (21)
=4
O = 20 % ( Number of Relationships)
= 20 % (21)
=5
U = 50 % ( Number of Relationships)
= 50 % (21)
= 11
4.14.3 Space Allocations
RACKS AREA REPACKING AREA
COUNTER
Figure 83.Space Allocation

Non-Productive Area
This refers to the area which can be found in the plant but does
not contribute directly to the production activities.
Table 51.
Non- Productive Space Allocation
Racks Area
Item Quantity Dimension Total Area (m²)
Racks 5 2.5 x 0.60 7.5
Total 7.5
150 % Space Allowance 11.25
Lounge Area
Table 4 1x1 4
Chair 16 0.5 x 0.5 4
Total 8
150 % Space Allowance 12
Counter Area
Cashier Table 1 1.5 x 0.90 1.35
Total 1.35
Office Area
Table 5 1.2 x 1 6
Chair 10 0.4 x 0.4 1.6
Filing Cabinet 1 0.7 x 0.7 0.49
Total 8.09

Comfort Room
Lavatory 2 1 x 0.80 1.6
Bowl 2 0.50 x 0.50 0.5
Total 2.1
Productive Area
This refers to the areas which can be found in the plant that
directly contributes to the production of Vacuum Fried Fruits.
Table 52.
Space Allocation of Productive Area
Repacking Area
Stainless Steel 2 3 x 0.80 4.8
Table
Chair 6 0.4 x 0.4 0.96
Crate 3 0.7 x 0.6 1.26
Food Container 12 0.5 x 0.5 3
Trolley 2 0.9 x 0.7 1.26
Locker 1 1 x 0.6 0.6
Total 11.88
Storage Area
Racks 5 2 x 0.70 7
Food Container 10 0.7 x 0.7 4.9
Trolley 2 0.9 x 0.7 1.26
Total 13.16

4.14.4 Summative Space Requirements and Allocation
The table 53 shows the total space area needed of the
Fruittyssential Hub with its corresponding space allowance.
Table 53.
Summative Space Requirements
Working Environment Total Space (m² )

Non -Productive Area
Racks Area 11.25
Counter 2.025
Lounge 12
Office 12.135
Comfort Room 3.15
PRODUCTIVE AREA
Repacking Area 17.82
Storage Area 19.74
Total 78.12 ≈ 79
4.14.5 Layout of Functional Areas
Functional areas have a great involvement of the operation of the
business. It is where the operation takes place to meet the requirements
or satisfaction of the customers. It this section, this will show the
breakdown of the functional area.

Figure 84. Perspective View
Figure 85. Store Lounge

Figure 86. Racks and Counter Area View
Figure 87. Repacking Area Perspective View
Figure 88. Storage Area, CR and Office Perspective View

Figure 89. Perspective View

4.14.7 Floor Plan
3m 2.06 m 5.94 m
0.80 m
RACKS AREA
COUNTER
3.18 m
REPACKING AREA
3m
STORAGE AREA
4.18 m
4.045 m
3m
2.1 m
LOUNGE OFFICE
COMFORT
ROOM
3m 1.5 m 3.5 m
3m
Figure 90. Floor Plan Lay Out

4.14.8 Location Plan Analysis
Figure 91. The Fruittyssential Hub

Table 54.
Criteria Affecting the Selection of the Business Location
Selection Criteria Description
Accessibility and Visibility The business can be easily seen and accessed
by the customers (walk-in , drop-by and drive-
through), employees and the suppliers.
Availability of Space The space must be sufficient and must be

appropriate for the business to be established.
Availability of Transportation Transportations are available for employees,

walk-in customers and suppliers.
Table 55.
Prioritization Criteria
Criteria Constituents Count Weight
Owner/Partners Employees Customer
Accessibility    3 27.27%
and Visibility
Availability of   2 27.22%
Space
Availability of    3 33.33%
Transportation
11.11%
Space Rent  1

Above presents the assessment criteria of the business location of
SR&A Fruit Essentials Company wherein it situates the repacking and
Fruittyssential Hub, where product being sold.
Factors that has a great impact in selecting a location for the
business is the Accessibility and Visibility and the Availability of
Transportation which weighted33.33% over other factors. The two
factors are apparently necessary since a particular establishment must
be visible and accessible enough and seeking for a transportation is
necessary to provide convenience to the customers and employees. The
other factors for the criteria are the availability of space which has its
rating impact of 22% and the least impact on deciding a location is rent
expense which has its rate of 11.11% in which only the
management/owner can decide.
The following area the criteria and its corresponding percentage of
impact and rating scheme:
Accessibility and Visibility of Establishment (33.33%). It means that
the location of the establishment must be clearly visible and accessible
enough that the customers can easily see it. The number of meters from
the target market towards the establishment are based on these criteria.
5 will be the highest rating given for the distance and 1 for the lowest
rating.

Table 56.
Accessibility and Visibility Scheme
Rating Description
1 5Km
2 4Km
3 3Km
4 2Km
5 1Km
Availability of Transportation (33.33%). This means that the
transportation must be consistently available for the easy access of
customers, employees and suppliers. Given 5 as the highest rate for the
number of vehicles passing per minute and 1 for the lowest rating.
Table 57.
Availability of Transportation Scheme
Rating Description
1 0-5 vehicles per minute
Availability of Space (22.22%). This means that the space where the
building will be constructed must be appropriate and sufficient. The total
number of square meter for the sufficiency of space are rated based on
the following criteria. 5 is the highest rating for having an adequate

space for the establishment and 1 is the lowest rating for having an
inadequate space.
Table 58.
Availability of Space Scheme
Rating Description
300 sq meter and
1 below
2 301-305
3 306-310
4 311-315
5 316-320
Rent Expense of the Lot (11.11%). This would comprise the total rent
expense every month and ideally, lower cost expense is good for all
starting business. Given 5 for the highest rating which represents the
lowest rental cost expense and 1 for the lowest rating that represents the
highest rental cost expense.
Table 59.
Affordability of Rent Scheme
Rating Description
1 Php 300,000 and above
2 Php 250,000-290,000
3 Php 200,00-240,000
4 Php 150,000-190,000
5 Php 100,000-Php 140,000

Table 60.
Weight Assignment
Selection Criteria
Visibility Availability of Availability Rent Expense Weight Rank
Commercial Space
and Accessibility Transportation of Space
33.33% 33.33% 22.22% 11.11%
Colon Avenue.,Cebu City 5 5 5 5 5.00 1
Manilili St.,Cebu City 4 5 5 4 4.56 2
Sample Computation:
=(5 33.33%)+(3 33.33%)+(5 22.22%)+(5 11.11%)
=5
In finding the appropriate location for the business, the proponents
used the prioritization matrix rating method. On the above options for the
location of the business as per carefully evaluated based on its
importance in business location decision, the highest weighted
commercial space is the Colon Avenue, Cebu City which weighted 5 and
would be the final proposal for the location of the business
establishment.

CHAPTER V
MANAGEMENT ASPECT
Management is coordinating and overseeing the work activities of others
so that their activities are completed efficiently and effectively. Efficiency means
getting the most output from the least amount of input; doing things right while
effectiveness simply means doing those work activities that help the organization
reach its goals; doing the right thing.
In this important aspect of feasibility study, the management of SR&A
Fruit Essentials Inc., will be detailed as to pre-implementation stage of the
organization, the corresponding activities and activity schedules upon
establishment of the said business.
The forms will of organization, the structure, the administrative bodies and
their respective duties and responsibilities will be revealed in this chapter. Also, it
is assumed as newly established business, the training and orientation will also
be given serious attention to attain the set mission, vision and objectives of the
company, anchored with this are the compensation plan and benefits of the
company workforce as ingredient of achieving optimum efficiency and
effectiveness of the organization.

5.1 Management during Pre-Implementation Stage
Table 61.
Management during Pre-Implementation Stage
Actual Lead Time

Activities
(days)
Feasibility Study 80
DOST Adviser Consultation 1
Investor Presentation 1
SEC Registration 2
Obtain Business Permit from Business Permits and
17
Licensing Office
BIR Registration 13
Registration with Social Security System 4
Registration at DOLE 4
Register with PhilHealth 1
Renovation of Building 1
Obtain for Certificate of Occupancy and CFEI at OBO 12
Obtain Fire Safety Inspection Certificate at BFP 5
Obtain Electricity Connection from VECO 21
Obtain Water Connection from MCWD 21
Obtain Telephone Connection from Telephone Company 5
Obtain Tax Declaration of Improvement from CAO 3
Procurement of machines, equipment, furniture, and
3
fixtures
Installation of machines, and equipment 3
Hiring Employees 7
Training Employees 3
Plant Blessing 1
Start of Operations
The table of management during pre-implementation presents all the
activities that needed to accomplish with the corresponding lead time which can
be served as guide in completing the study.

Responsible Accountable Consulted Informed (RACI) Matrix
RACI Matrix is a fair distribution of task of the key actors involved
in a certain project.
Table 62.
RACI Matrix
Key Actors
Activities Researcher Owner Partner/ Adviser
Investor
Feasibility Study R C A
DOST Adviser Consultation R I
Investor Presentation R A
A/R C/I
DTI Registration
Obtain Business Permit from Business Permits A/R C/I
and Licensing Office
A/R C/I
BIR Registration
A/R C/I
Registration with Social Security System
A/R C/I
Registration at DOLE
A/R C/I
Register with PhilHealth
A/R C/I
Renovation of Building
Receive Inspection from BFP During A/R C/I
Construction
A/R C/I
Obtain Fire Safety Inspection Certificate at BFP
A/R C/I
Obtain Electricity Connection from VECO
A/R C/I
Obtain Water Connection from MCWD
Obtain Telephone Connection from Telephone A/R C/I
Company
Obtain Tax Declaration of Improvement from A/R C/I
CAO
Procurement of machines, equipment, furniture, A/R C/I
and fixtures
A/R C/I
Installation of machines, and equipment
A/R C/I
Hiring Employees
A/R C/I
Training Employees
A/R C/I
FDA Registration
A/R C/I
Plant Blessing
A/R C/I
Start of Operations

Gantt Chart
Gantt Chart is a specialized project management tool in order to project
the project start date, completion date and project duration.
Table 63.
Gantt Chart
Actual Months
Lead
Activities
Time 1 2 3 4 5 6 7 8 9 10
(days)
Feasibility Study 80
DOST Adviser Consultation 1
Investor Presentation 1
DTI Registration 2
SEC Registration 2
Obtain Business Permit from Business
17
Permits and Licensing Office
BIR Registration 13
Registration with Social Security System 4
Registration at DOLE 4
Register with PhilHealth 1
Building Renovation 60
Obtain for Certificate of Occupancy and CFEI
12
at OBO
Obtain Fire Safety Inspection Certificate at
5
BFP
Obtain Electricity Connection from VECO 21
Obtain Water Connection from MCWD 21
Obtain Telephone Connection from Telephone
5
Company
Obtain Tax Declaration of Improvement from
3
CAO
Procurement of machines, equipment,
3
furniture, and fixtures
Fabrication of selected machines and
7
equipment
Installation of machines, and equipment 3
Hiring Employees 7
Training Employees 3
Plant Blessing 1
Start of Operations

5.2 Management During Normal Operation Process
5.2.1 Form of Organization
Team
Structure
Organizational
Design
Matrix and
Boundaryless
Project
Organization
Structure
Figure 92. Contemporary Organizational Designs
Managers in contemporary organizations are finding appropriate
organization designs for increasingly dynamic and complex environment they
faced. In response to marketplace demands for being lean, flexible and innovate,
the SR&A Fruit Essential management are finding creative ways to structure and
organize work and to make our organization more responsive to the needs of our
customer, employees and other organizational constituents.
Figure 92 presents the contemporary organizational design as basis of
SR&A organizational design:

Table 64.
Contemporary Organizational Designs
Organizational Description Advantage Disadvantage

Design
A structure in  Employees are  No clear chain of

which the entire more involved command
Team Structure organization is and  Pressure on
made up work empowered. teams to perform
group or teams  Reduced
barriers among
functional areas
A structure that
Matrix-Project assigns  Fluid and  Complexity of
Structure specialist from flexible design assigning people
different that can to projects.
functional areas respond  Task and
to work on environmental personality
projects but who changes. conflicts.
return their  Faster decision
areas when the making
project is
completed
A structure that
Boundaryless is not defined by  Highly flexible  Lack of control
Structure or limited to and responsive .  Communication
artificial  Draws on talent difficulties
horizontal , wherever its
vertical , or found.
external
boundaries;
includes virtual
and network
types of
organization.

The SR&A adopt Team Structure Organizational Designs bench marked
to Whole Foods Market and Google Company. Larry and Sergey Brin, co-
founders of Google, have created a corporate structure that “tackles most big
projects in small, tightly focused teams.
In a team structure, the entire organization is made up of work teams that
perform organization’s work. Needless to say, employee empowerment is crucial
in team structure because there is no line of management authority from top to
bottom. Rather, employee teams are free to design work in the best way they
think is best.
Whole Foods Market Inc., the largest natural-foods grocer in the United
States, uses team structure. Each of company’s almost 200 stores is organized
around self-imaged teams, each with a designated team leader.

5.2.2 Organizational Structure
General Manager
Production Supervisor/ Sales Manager

General Accountant
Quality Engineer HR Manager
Team Leader/Quality Cashier

Purchaser
Inspector
Production Workers Driver Security Guard HR Staff
Figure 93. Organizational Structure
5.2.3 Personnel of Business
In SR&A Fruit Essential Inc., the workforce is given such great
value. The following are the personnel with their corresponding job
specification, description and responsibilities.
Job Description
After the different positions in the organization are defined, job
descriptions are made to be able to explain in detail the functions that
are to be carried out by a person in a specific position. Job descriptions

cover the list of responsibilities the job entails as well as specifications
for each job.
Job Identification
Job Title: General Manager
Reports to: --
Supervises : General Accountant, Production Supervisor, Sales
Manager, Company driver, Security Guard
Job Summary
The General Manager is responsible for directing and managing all
the phases of the hub operations with overall responsibility in all
company activities. He/she also makes sure that the store is running
smoothly and efficiently. He/she plans, directs and coordinates human
resource activities of the company. He/she is responsible for defining the
job of different positions, recruitment, selection, testing and training of
new hires. The person in this position also conducts performance
appraisals and decides on the compensation and benefits of the
employees in the company. He/she is also responsible in promoting the
product of the company to the customers and negotiating contracts with
the aim of maximizing the sales profits.
Responsibilities

The responsibilities include but are not limited to:
Daily
 Daily checking of the overall operation of the plant and store
 Provide leadership for day to day operations
 Review production schedule
 Approve the purchase orders made by the purchaser and noted by
the general accountant
 Give orders to the company driver when necessary
 Monitor employee tardiness and absences
 Resolve conflicts and address salary grievances of employees as
needed
 Follow up the sales performance of the product in the market
Weekly
 Check the reports given by the production supervisor, sales
manager and general accountant
 Schedule and conduct interviews for prospect employees of the
company as needed
 Monitor the weekly sales of the product in the market
 Report the monthly sales of the product during the monthly meeting
 Conduct monthly meetings with the production supervisor and
general accountant and investors
 Monitor operating expenses and devise ways to minimize cost

Yearly
 Conduct regular meeting with the production supervisor and
general accountant and manager
 Develop strategies to further improve the overall store performance
for production
 Establish long and short-term goals concerning employment in the
company
 Develop marketing strategies for the next year
 Closely monitor strong relationship with the main supplier
Job Specification
 Male or Female
 25 years old and above
 A graduate of Industrial Engineering /Food Technology/Business
Administration
 At least 2 years managerial or supervisory experience
 Proficient in MS Application
 Possessed strong leadership skills
 A good communicator
 A team player
Job Identification
Job Title: General Accountant

Reports to: General Manager
Supervises: Purchaser
Job Summary
The general accountant directs and coordinates financial activities
of the company. He/she examines and processes loan applications of
the company and reviews the financial report of the company. He/she
basically secures financial operations in the company and manages the
outsourcing of bookkeeper. He/she is also responsible for ordering
materials and supplies and compiling information and records to draw up
purchase orders for the procurement of materials and services for the
company. Furthermore, he/she is also responsible for the payroll of the
workers.
Responsibilities
Daily
 Maintain cash flow by monitoring bank balances and cash
requirements
 Audit daily transactions and get a copy of the receiving reports
 Issue payments on transactions
Quarterly
 Report financial analysis to the general manager

Monthly
 Conduct a presentation or proposal as to how to improve and solve
the financial-related problems of the company
 Process and prepare the payroll of the workers
Yearly
 Present a financial analysis during the annual meeting
Job Specification
 Male or Female
 25 years old and above
 A graduate in Bachelor of Science in Accountancy
 A Certified Public Accountant
 Proficient in MS Excel and MS Word Application
 At least 2 years experience in accounting firm
 Must possess good leadership track
Job Identification
Job Title: Purchaser
Reports to: General Accountant
Supervises: --
Job Summary
The purchaser is responsible of purchasing all the needed
equipment or materials of the company. He/she will be in charge of the

materials inventory of the hub.He/she is required to outsource supplier in
the event of unavailability of the sole supplier.
Responsibilities
Daily
 Stock counting
 Check if the amount of raw materials delivered conforms with the
purchase order
Weekly
 Report material inventory and stock inventory to the general
accountant.
Monthly
 Purchase vacuum fried fruit and plastic standee pouches
Job Specification
 Male or Female
 At least 22 years old and above
 A graduate in Marketing or Equivalent
 Proficient in MS Application
 Possessed strong leadership
 A team player

Job Identification
Job Title: HR Manager
Supervises: HR Staff
Job Summary
He/she will be responsible for managing all aspects of human
resource functions, including recruitment, HR policy development and
implementation, and staff care, ensuring that these follow existing
company practice and guidelines and to a high standard. The HR
Manager will also work closely with HR staff and monitors the assigned
task regularly.
Responsibilities
 Manage the implementation of SR & A Fruittyssentials recruitment
policy, including selection and ensuring that recruitment practices
are fair and consistent and comply with regulations and
organizational good practice.
 Manage staff induction and probation in line with SR & A
Fruittyssentials policy.
 Perform salary and benefits appraisals on an annual basis
 Provide leadership to country office staff in relation to HR

 Ensure that all staff are aware of policies and procedures in
place.
 Act as focal point for all initial queries from staff regarding policies
and procedures.
 Monitor and advise on disciplinary and grievance matters in
accordance with the company policies and procedures
Job Specification
 Male or Female
 A BS Psychology or BSBA Major in Human Resource Development
 Have been practicing training and developmental trainings
 A team player
Job Identification
Job Title: Sales Manager
Supervises: Cashier
Job Summary
He/she will be responsible for managing all aspects of store sales
aspect, store policy development and implementation ,sales promotional

strategies procurement. The Sales Manager will also work closely with
the cashier in maintaining high sales volume.
Responsibilities
 Manage the implementation of SR & A Fruittyssentials sales
promotional strategies consistent and comply with regulations and
organizational good practice.
 Manage store inventory and sales
 Provide leadership to sales department and other interrelated
department
Job Specification
 Male or Female
 A BSBA Major in Sales and Marketing
 A team player
Job Identification
Job Title: HR Staff
Reports to: HR Manager
Supervises: ---
Job Summary

He/she will be responsible of assisting the HR Manager in the
implementation of company rules and regulation, recruitment, training
and all HR related activities.
Responsibilities
 In charge of employee profiling.
 He/ she will be the one to record and resolve minor grievances that
may occur in the company.
Job Specification
 Female
 At least 20 years old
 A BS Psychology or its Equivalent
 Facilitated trainings and seminars
 A team player
Job Identification
Job Title: Production Supervisor/Quality Engineer
Supervises: Team Leader/ Quality Inspector

Job Summary
The production supervisor/ quality engineer oversees the daily
production inside the plant and ensures optimum quality of the product
produced. He/she plans, coordinates and directs the work flow and
resources needed to manufacture the company’s products according to
cost, quality and quantity specifications. He/she is responsible for
making quality control policies for the different aspects of production
within the organization. The person in this position sets standards for
various product specifications and frequently audits how finished goods
conform to standards. He/she is also the one to create purchase
requests for raw materials and supplies.
Responsibilities
Daily
 Create a production plan by scheduling and allocating manpower
and resources in accordance with production orders.
 Coordinate with leadman for daily production reports and conflicts
between workers in the line.
 Coordinate with the leadman for the inventory levels of the finished
goods and raw materials
 Sign and fills up the receiving report, delivery report

 Ensure occupational safety and health standards are complied with
during production.
 Ensure all quality control measures of the company are
implemented.
 Ensure personnel safety and hygiene within production area.
Weekly
 Train new production workers.
 Report production problems to the General Manager.
 Conduct meetings with Team Leader for assessment of the
production runs
Monthly
 Present consolidated production reports to the Plant Manager.
 Make decisions regarding how much and when to order raw
materials, the level of inventory to be maintained given budget and
time constraints.
 Assess performance of the production line.
 Monitor performance of quality control systems to ensure
effectiveness and efficiency.
 Provide quality control reports to the Plant Manager.
Yearly
 Make annual reports on production efficiency to be submitted to the
Plant Manager.

 Forecast production for the following year and develop the
production plan and schedule.
 Present reports and plans during the annual meeting with the Plant
Manager.
 Coordinate with third party analysts regarding BFAD audits.
Job Specification
 Male
 A BS Industrial Engineering graduate
 Have been experienced leading the team or held any supervisory
positions
 Possess good leadership skills
 A team player
Job Identification
Job Title: Team Leader
Reports to: Production Supervisor
Supervises:
Job Summary

The leadman is responsible for directly supervising and
coordinating the activities of the production workers in the plant. He/she
also takes the role of a production worker and ensures that the
production line is run smoothly. He/she is also the one responsible for
the inventory of finished goods and released goods. The leadman is also
in charge of the first aid of injured co-workers.
Responsibilities
Daily
 Assist the production supervisor upon receipt of raw materials
ordered
 Check if the raw materials are in suitable condition for processing
 Relay the daily production schedule to production workers.
 Works as the head of the production workers
 Assign work and delegate tasks to production workers in a fair
manner.
 Report any problems encountered during the production period to
the Production Supervisor.
 Submit daily production reports to the Production Supervisor.
 Conduct an inventory report on the finished goods
 Perform first aid for injured workers when necessary.
Weekly

 Monitor the raw materials storage area if the goods are stored in
proper condition
 Conduct informal meetings and interact with production workers to
be able to know their strengths and weaknesses.
 Report conflicts between production workers to the Production
Supervisor when they cannot be resolved after several meetings.
 Conduct 5S in the workplace.
 Monitor areas involved in production and assess whether they are
subject for cleaning or maintenance
Job Specification
 Male or Female
 At least high school graduate
 Have been experienced as production worker in food industry
Job Identification
Job Title: Production Worker
Reports to: Team Leader
Supervises: --
Job Summary

The production worker performs first-hand the different tasks
associated in each production process of the company. He/she is
responsible for operating machinery, handling raw materials and
packaging finished products.
Responsibilities
Daily
 Perform the tasks assigned by the leadman – prepare raw materials
for production, transport raw materials and finished products, pack
finished products, operate machinery used in the production process,
etc.
 Clean work area, machines and equipment after use.
 Manage waste disposal.
 Check and calibrate equipment before the start of production
Job Specification
 Male or Female
 Hardworking

Job Identification
Job Title: Company Driver
Supervises: --
Job Summary
The company driver is responsible for driving the company truck
to acquire the raw materials from the supplier. He is also in-charge for
delivering the goods to the distribution center and goods for advertising
purposes. He also serves as a utility person in the plant.
Responsibilities
Daily
 Drive the company truck to get the supplies from supplier
 Drive the company truck to deliver the products of the company to
the distribution center
 Report to the plant manager
 Arrange the sales promotion displays or issue sales promotion
materials to customers
 Keep the plant in clean and orderly condition
 Task with heavy cleaning duties

 Cleaning duties like sweeping the floors, mopping and the like
Job Specification
 Male or Female
 Must have 123 license
 Knows the route of Cebu and Tacloban
Job Identification
Job Title: Security Guard
Supervises: --
Job Summary
The security guard is the one responsible in guarding, patrolling
and monitoring the premises of the plant to prevent theft, violence or
infraction of rules.
Responsibilities

Daily
 Monitor the entry and exit of employees, visitors and other people
to maintain security
 In cases of emergencies like fire or theft, call the fire or police
department
 Patrol the premises of the hub to preserve order and protection of
property
 Log incidental report if may occur.
Job Specification
 Male or Female
 Must be 5’3’’ in height
 Must have a security license from a government accredited agency
Job Identification
Job Title: Sales Clerk/Cashier
Reports to: Sales Manager
Supervises: --
Job Summary

The sales clerk is the front liner and receptionist of the hub
responsible of selling and receiving cash generated from the product
sold.
Responsibilities
Daily
 Sell the product of hub
 Receive cash from the product sold
 Turnover cash to the sales manager
Orientation and Training
After candidates are recruited and interviewed, the ones who are
most fit for the job will be selected. New hires in the company will have to
be trained to get them to perform their job efficiently and effectively. Prior
to officially starting, employees will undergo orientation and training
during the pre-operating period of the company. All new hires, regardless
of the position, are subject to the same employee orientation. The
owners of the company will train the general manager, and the general
manager together with the HR Manager will train the people in the
positions under him/her.

Table 65.
Employee Orientation Overview
EMPLOYEE ORIENTATION OVERVIEW
I. General Introduction to the Company

A. Company history
B. Company mission and vision
C. Policies
II. HR Information
A. Job description review
B. Working hours
C. Employee benefits
D. Compensation scheme
E. Vacations and leaves
F. Performance appraisal scheme
III. Workplace Safety, Security and Emergency
Procedures
Table 65 presents the contents of the employee orientation.
Table 66.
Training Objectives for General Manager
TRAINING OBJECTIVES
General Manager
By the end of the training, the plant manager must be able to:
1. Know the organization of the whole company
2. Communicate with the owners and the people under his
supervision effectively
3. Distinguish between the different functions of the organization
4. Set short and long-term goals for the organization
5. Know all the transactions that will occur all year round
6. Know the processes that take place in the production and the
materials, machines and equipment that come with it
7. Handle the day-to-day functions his/her job requires

Table 67.
Training Objectives for General Accountant
TRAINING OBJECTIVES
General Accountant
By the end of the training, the general accountant must be able to:
1. Know the organizational chart of the company.
2. Familiarize the various suppliers and their products.
3. Familiarize the various forms used in procurement, transactions, etc.
4. Differentiate between the operation and administration costs of the
company.
5. Communicate with different departments effectively
6. Distinguish between the different departments and functions of the
organization
7. Know his/her relationships with other departments in the organization
8. Become familiar with the manufacturing process.
Table 68.
Training Objectives for Sales Manager
TRAINING OBJECTIVES
Sales Manager
2. Familiarize the various promotional strategies
3. Familiarize the various forms used sales and inventory
organization
7. Become familiar with the manufacturing and store process

Table 69.
Training Objectives for Human Resource Manager
TRAINING OBJECTIVES
Human Resource Manager
2. Familiarize ways in handling grievances of the company
3. Familiarize in hiring, recruitment, placement, training and
development, compensation and appraisal procedures
organization
7. Become familiar with the manufacturing process.
Table 70.
Training Objectives for Production Supervisor
TRAINING OBJECTIVES
Production Supervisor/ Quality Engineer
By the end of the training, the production worker must be able to:
1. Know the organization of the production department
2. Be acquainted with the production team and colleagues
3. Familiarize the repacking process of vacuum fried fruits ,raw
material component, machines and equipment involved
4. Familiarize the quality control points and procedures of controlling it
5. Become familiar with the production, budget and other constraints of
the production
6. Communicate and lead his/her team members effectively
7. Regularly interact with the team
organization
11. Implement effective production schedules and plans and quality
control measures

Table 71.
Training Objectives for Team Leader
TRAINING OBJECTIVES
Team Leader
3. Communicate with the team effectively
4. Become familiar with the raw materials used in the production of the
finished product
5. Become familiar with the manufacturing/repacking process
6. Be equipped with the warehousing techniques
7. Become familiar with the quality inspection points of the production
process.
Table 72.
Training Objectives for HR Staff
TRAINING OBJECTIVES
HR Staff
3. Communicate with the team effectively
4. Become familiar in the hiring, recruitment ,placement ,compensation
and appraisals
5. Become familiar with the HR forms

Table 73.
Training Objectives for Production Worker
TRAINING OBJECTIVES
Production Worker
finished product
3. Become familiar with the manufacturing process
4. Learn how to operate and use machine and equipment involved in
the manufacturing process
Table 74.
Training Objectives for Purchaser
TRAINING OBJECTIVES
Purchaser
finished product
3. Become familiar with the purchasing processes and suppliers
Table 75.
Training Objectives for Cashier
TRAINING OBJECTIVES
Cashier
2. Hub facilities familiarization
3. Hub products familiarization
4. Become familiar with the importance of customer service

Training objectives for new hires are also listed down and the training
programs are made from these objectives. Objectives for the different positions
are shown in Tables 71- 75.
Table 76.
New Employee Training Schedule for General Manager
NEW EMPLOYEE TRAINING SCHEDULE

General Manager
Name: Date Started: Date Completed:
Target
Item Agenda Facilitator
Objectives
Meeting, orientation and
1 discussion with owners of the 1,2,3,4,5,9
company
Meeting, orientation and
2 discussion with owners of the 1,2,3,5,9
company
3 Company facilities tour 6,9
Material flow, production
4 process, machines and 6,9
equipment orientation
Refresher on sound decision –
5 7,9
making and good leadership
Refresher on marketing and
6 8,9
sales
Table 77.
New Employee Training Schedule for General Accountant

General Accountant
Target
Objectives
1 Employee orientation 1,6,7,9
Company Tour 8
2 Manufacturing process
8
orientation
Refresher on financing, costing
3 and other accounting 3,4,9
transactions

Table 78.
New Employee Training Schedule for Production Supervisor

Production Supervisor

Target
Objectives
1 Employee orientation 1,2,3,4,5,6
Virtual Hub Tour 7,8
Material flow, production
2
process, machines and 7,8
equipment orientation
3 Refresher on production
10
scheduling
Refresher on quality control:

4 quality control chart, lean six 10
sigma
Refresher on production
5 10
planning and efficiency
Table 79.
New Employee Training Schedule for Team Leader

Target
Objectives
1 Employee orientation 1,2,3,7
Hub Facilities tour and
2 manufacturing process 4,5,6
orientation
3 Quality inspection orientation

Raw material handling,
4 machines and equipment 4,5,6
handling

Table 80.
New Employee Training Schedule for Production Worker

Production Worker

Target
Objectives
1 Employee orientation 1,5
Hub facilities tour and
orientation
handling
Table 81.
New Employee Training Schedule for Human Resource Manager

Human Resource Manager

Target
Objectives
orientation
3 Refresher on employment issues 5

, training and development

Table 82.
New Employee Training Schedule for Sales Manager

Sales Manager

Target
Objectives
orientation
Refresher on sales and
3 2,3,4
marketing strategies
Table 83.
New Employee Training Schedule for Human Resource Staff

Human Resource Staff

Target
Objectives
orientation

Table 84.
New Employee Training Schedule for Purchaser

Purchaser

Target
Objectives
orientation
handling
Table 85.
New Employee Training Schedule for Cashier

Cashier

Target
Objectives
orientation
3 Importance of Good Customer

Service
4 Cashiering Important Tips 2,3,4
The training schedules for different positions in the company are
presented in Tables 76 – 85.

Performance Management and Appraisal
After employees are trained and have started on the job for a
period of time, their performances have to be appraised. Performance
appraisal will evaluate whether the specific person in the position has
done the duties specified in the job description and whether the training
he/she has undergone was effective in molding the employee to carry
out his/her task well.
In appraising the performance of employees, the company will
make use of the graphic rating scale method of performance appraisal.
Employees will be appraised annually but performance management
would be conducted on a day-to-day basis or whenever the need arises.
Quantifiable metrics for the performance measures stated in the rating
forms will be provided so as to provide the appraiser a solid basis on the
rating given to the employee. Table 86 shows different performance
rating forms for different positions in the company.

Table 86.
Performance Appraisals
PERFORMANCE RATING FORM

______________
Employee’s Name:_____________________ Position: Plant Manager
TECHNICAL
PRODUCTION OUTPUT
1
Below Expectations 2 3
Meets Expectations 4 Exceeds Expectations 5
Does not reach target production Meets target production output and Meets target production output with a
output/low recovery rate of finished within acceptable recovery rate range higher recovery rate of finished
product of finished product product
BACKLOG
Below Expectations
1 Meets Expectations Exceeds Expectations
Did not fulfill the orders of different
2 Fulfilled 3
orders but not on time 4Fulfilled orders promptly
5
(supermarkets)
INTERPERSONAL
LEADERSHIP
Below Expectations
1 Meets Expectations Exceeds Expectations
Fails to carry out his job
2 3 expected
Consistently does what is 4 initiative in improvement,
Takes 5
of him/her promotes wholesome development
among members of the organization
COMMUNICATION
1 2 3 4 5
Below Expectations Meets Expectations Exceeds Expectations
Unable to define realistic goals for SMART goals are defined and SMART goals with action plans are
the organization relayed to the whole organization defined and relayed
DECISION MAKING
1 2 3 4 5
Fails to react timely and makes bad Reacts timely but only provide short Reacts timely usually with backup
decisions term solutions to problems plans and provides long term
solutions to problems
PERSONAL EFFECTIVENESS
1 2 3 4Exceeds Expectations 5
Below Expectations Meets Expectations
Has a hard time relating to people Gets along with people and Relates to the people, takes the
from different walks of life thus failing addresses their issues when the initiative and reaches out to the
to effectively carry out the HRM role need arises members of the organization
COMMENTS:
_______________________________________________________________________________________________
_______________________________________________________________________________________________
________________________________________________________________________________________
Evaluator: _____________________________________________ Date: _________________________________

Employee: ______________________________________________Date: ________________________________

______________
Employee’s Name:_____________________ Position: General Accountant

TECHNICAL
FINANCIAL TRANSACTIONS
Below Expectations
1 2 Meets Expectations3 Exceeds
4 Expectations
5
More than ten late payments Five to ten late payments for Less than five late payments
for A/P per year A/P per year for A/P per year
FINANCIAL ANALYSIS
1
Below Expectations 2 Meets Expectations
3 Exceeds
4 Expectations
5
Able to perform financial Performs financial analysis Performs analysis, explains
analysis but not able to and explains the reason why, and provides points for
explain the implications of behind values obtained improvement
such values
INTERPERSONAL
1
3 Exceeds
4 Expectations 5
Fails to carry out his job Consistently does what is Takes initiative in
expected of him/her improvement
COMMUNICATION
1
3 Exceeds
4 Expectations
5
Only communicates with Constantly communicates Applies the supplier
suppliers when the need with suppliers for follow-up integration concept to
arises strengthen bond between
vendor and vendee
DECISION MAKING
1 2 3 4 5
Fails to react timely and Reacts timely but only Reacts timely usually with
makes bad decisions provide short term solutions backup plans and provides
to problems long term solutions to
problems
COMMENTS:
Evaluator: _____________________________________ Date: ___________________

Employee: _____________________________________ Date: ___________________

______________
Employee’s Name:_____________________ Position: Production

Worker
TECHNICAL
BAD INCIDENTS DURING PRODUCTION

1 2 3 4 5
More than ten bad incidents Five to ten bad incidents per Less than five bad incidents
per year year per year
INTERPERSONAL
1 2 3 4 5
COMMUNICATION
1 2 3 4 5
Aware of the need for Communicates the need for Anticipates the need for
maintenance and repairs but maintenance and repairs maintenance and repairs and
fails to communicate them when machine or equipment informs supervisor ahead of
already breaks down time
COMMENTS:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Evaluator: ___________________________________________Date: ___________
Employee: ___________________________________________Date: ________

______________
Employee’s Name:_____________________ Position: Production Supervisor

TECHNICAL
OVERTIME
1 2 3 4 5
Overtime incurred exceeds Overtime incurred within the No overtime incurred while
overtime limit set by the company limit satisfying demand
company
REJECT
11
33 Exceeds
44 Expectations
55
Rejects exceed set company Rejects hit the reject rate of Rejects below reject rate set
reject rate the company by the company
PRODUCTION WORKER VIOLATIONS

1 2 3 4 5
More than five production One to five production worker No production worker
worker violations incurred violations incurred violations during the time
period
INTERPERSONAL
1 2 3 4 5
COMMUNICATION
1 2 3 4 5
COMMENT:
___________________________________________________________________
Evaluator: ______________________________________ Date: ___________

Employee: _______________________________________ Date: __________

______________
Employee’s Name:_____________________ Position:Team Leader
TECHNICAL
BAD INCIDENTS DURING PRODUCTION

1 2 3 4 5
More than ten bad incidents Five to ten bad incidents per Less than five bad incidents
per year year per year
INTERPERSONAL
1 2 3 4 5
COMMUNICATION
1 2 3 4 5
COMMENTS:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Evaluator: ________________________________________ Date: ___________

Employee: _________________________________________ Date: ___________

______________
Employee’s Name:_____________________ Position: Driver

TECHNICAL
PROMPTNESS
1 2 3 4 5
A significant amount of late Deliveries were all made on Deliveries were made with
deliveries were made time time to spare
CLEANLINESS
1
3 Exceeds
4 Expectations 5
incidents of a dirty work Areas of responsibility ok Areas of responsibility very
place clean
INTERPERSONAL
1
3 Exceeds
4 Expectations 5
COMMUNICATION
1
3 Exceeds
4 Expectations5
vehicle maintenance and vehicle maintenance and vehicle maintenance and
repairs but fails to repairs when already breaks repairs and informs
communicate them down supervisor ahead of time
COMMENTS:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Evaluator: ____________________________________ Date: ___________
Employee: ____________________________________ Date: ___________

______________
Employee’s Name:__________________________ Position: Sales Manager
TECHNICAL
SALES QUOTA
1
3 Exceeds
4 Expectations
5
Does not meet the sales Meets sales quota of the Exceeds the sales quota of
quota of the company company the company
INTERPERSONAL
1
3 Exceeds
4 Expectations 5
COMMENTS:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Evaluator: _____________________________________ Date: __________________
Employee: _____________________________________ Date: ________________

______________
Employee’s Name:_____________________ Position: Purchaser
INTERPERSONAL
1 2 3 4 5

COMMUNICATION
1 2 3 4 5
COMMENTS:
__________________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Evaluator: __________________________________________ Date: ____________

Employee: __________________________________________ Date: ___________

______________
Employee’s Name:_____________________ Position: HR Manager
TECHNICAL
EMPLOYEE TURNOVER RATE
1 2 3 4 5
Higher than the general Turnover rate is close to the Lower than the general
turnover rate of dried fruit general turnover rate of dried turnover rate of dried fruit
industries fruit industries industries
INTERPERSONAL
1 2 3 4 5
COMMUNICATION
1 2 3 4 5
COMMENTS:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Evaluator: __________________________________________ Date: ___________
Employee: __________________________________________ Date: __________

______________
Employee’s Name:_____________________ Position: Cashier
TECHNICAL
CUSTOMER SERVICE
1 2 3 4 5
At least 5 customer One customer complaints in No customer complaints
complaints in a year a year
INTERPERSONAL
1 2 3 4 5
COMMUNICATION
1 2 3 4 5
COMMENTS:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
Evaluator: ________________________________________ Date: __________________ _
Employee: ________________________________________ Date: ____________________

5.2.4 Compensation Plan and Benefits
Retaining and motivating employees is a key concern in any
organization or company. It is not only about creating the best working
environment; offering a tailored remuneration package in the most cost
efficient way is crucial in challenging times. As much as we value
customer as our product end user, as a company who do so much care
for sustainable growth and minimum turnover, the labor force of the
organization should be given what’s just for them and in turn empower
them to be at its best performance upon working the company
Benefits
Benefits are payment or entitlement such as one made under an
insurance policy or employment agreement or public assistance
program. These are also privileges, advantages, right and financial
reimbursement given to the employees which are usually government-
mandated benefits.
As required by Law
o Work hours and Overtime
The normal hours of work should not exceed eight hours a day.
All employees required to work beyond eight hours in one workday are
entitled to overtime pay. The basis of overtime pay is found in Article 87
of the Labor Code.
Article 87. Overtime Work. Work may be performed beyond eight
hours a day provided that the employee is paid for the overtime work an

additional compensation equivalent to his regular wage plus at least
twenty-five percent thereof. Work performed beyond eight hours on a
holiday or rest day shall be paid an additional compensation equivalent
to the rate for the first eight hours on a holiday or rest day plus at least
30 percent thereof. This means that an additional compensation payable
to employee for work services rendered beyond the normal hours of
work. It is computed by multiplying the overtime rate with the number of
hours in excess of the regular eight hours of work. Overtime pay rates
depend upon the day the work is performed, whether it is ordinary
working day, special day, holiday or rest day.
o Holidays
Holidays Date
New Year’s Day Jan. 1
Araw ng Kagitingan Apr. 9
Maundy Thursday Movable
Good Friday Movable
Labor Day May 1
Independence Day Jun. 12
National Heroes Day Aug. 24
Bonifacio Day Nov. 30
Christmas Day Dec. 25
Rizal Day Dec. 30
o Special Days
Special Days Date

Benigno Aquino Jr. Day August 21
All Saints Day November 1

Additional Rate for Ordinary Working Day:
Overtime Rate per Hour = + 25%
Overtime Rate per Hour=
Additional Rate for Special Day and Rest Day:
Overtime Rate = + 30%
o 13th Month Pay
It is a form of monetary benefit equivalent to the monthly basic
compensation received by an employee, computed pro-rata according to
the number of months within a year that the employee has rendered
service to the employer. All establishments regardless of the number of
employees are required to pay their rank- and- file employees the 13th
month pay. The ones who are entitled to receive the 13th month are all
rank-and-file employees regardless of the nature of their employment
and irrespective of the methods by which they are paid, provided they
worked for at least one month during a calendar year. The 13th month
pay is computed based on the 1/12 of the total basic salary of an
employee within a calendar year, or basic monthly salary for the whole
year divided by 12 months. The 13th month pay should be given to the
employees not later than December 24 of every year.
Total Monthly Salary= − ,

13th Month Pay =
o PAG- IBIG Fund
PAG-IBIG member employees who are earning monthly
compensation for Php 1, 500 and below will contribute 1% per month
while those earning above contribute 2% per month. PAG-IBIG member
employees are mandated by law to provide counterpart contribution at
the 2% per month of the PAG-IBIG member-employees’ monthly
compensation. A PAG-IBIG member who contributes 1% of his
compensation automatically triples his monthly saving with the additional
employee counterpart contributions while PAG-IBIG member who
contributes 2% per month immediately doubles his savings.
o SSS Membership
Republic Act No. 1611 protects employees against hazards of
disability, sickness, old age and death. All employees are required by the
act to become members of the SSS. Their contribution will be based on
their monthly gross income reflected on the contribution schedule.
o Phil Health Insurance
The Philippine Health Insurance (Phil Health) was created for an
integrated and comprehensive approach to health development. The
monthly contributions to be paid depend upon the income bracket set to
which the employees belong

o Sick Leave
According to Article 95 of the Labor Code of the Philippines, an
employee who has worked for at least one (1) year in a company is
entitled to five (5) days leave of absence, with pay, every year. If the
employee does not avail of these paid leaves, the company may decide
to have them do a mandatory leave of absence, with pay, or convert
these unused paid leaves to their cash equivalents, to be given at the
end of each year. . In computing, the basis shall be the salary rate at the
date of conversion.
5.2.5 Management Policies and Regulations
Rules and regulations are publicly agreed sets of principles,
policies, criteria, descriptions or conducts leading an activity for reasons
of safety, equipment or facility design, authoritative control over people
and competitiveness. The company requires each employee to faithfully
abide by the rules and regulation set by the company.
Rules and Regulation for Employees
The company has established General Rules and Regulation
relevant to its entire employee.
1. The employee must strictly observe punctuality. He or she should
arrive to company’s premises ten (10) minutes before the time.

2. Employees shall maintain a professional appearance at all times while
on duty and shall wear prescribed uniform.
3. Smoking inside company’s premises is prohibited.
4. Reporting to work under the influence of liquor or drugs and the
possession of such things is strictly prohibited in the Company premises.
5. Gambling inside the company will not be tolerated.
6. Employees must avoid tardiness, absence, and departure from work
without the permission of the supervisor.
7. Sleeping or loafing on the job is prohibited.
8. Cleanliness and orderliness should be maintained at all times.
9. The employees should attend to customers with utmost courtesy.
10. Every employee has a duty to protect and safeguard Company
property and the property of customers and employees.
11. Notification must be given to the owner/manager at least a day
before the employee wishes to be absent except for health-related
absences. Habitual absence should be evaluated so that proper
measures will be taken to prevent its recurrence.
12. Failure to comply with the rules and regulations will be subject to
disciplinary action: oral warning, written warning, suspension and
termination, as the case may be.

Table 86.
Disciplinary Action
Consecutive Offense Corresponding Sanction Description
1st Oral Warning The person who violated

the rules will talk to the
assigned personnel
privately
2nd Written Warning Notice given to the
violation in case the oral
warning is disregarded
3rd Disciplinary Suspension Suspension will be given
to those who ignored the
two preceding actions
4th Termination Dismissal from work will
be the ultimate disciplinary
action for grave offenses
and violations

CHAPTER VI
LEGAL AND TAXATION ASPECT
This chapter shows the legal aspect of the business on all the processes
that it will go through as they register the business and also the type of tax that
the business will depend on.
Before starting a business one should follow the rules and procedures of
establishing a business by acquiring registrations from the different government
agencies. The following are the government agencies in which you will register
your business and be recognize here in the Philippines:
Table 87.
Government Agencies
Government Agencies
Security and Exchange Commission (SEC)
Local Government Unit (LGU)
Barangay Hall
Bureau of Internal Revenue (BIR)
Social Security System (SSS)
Philippine Health Insurance Corp. (Philhealth)
Food and Drug Administration (FDA)

6.1 Legal Aspect
SEC Registration
Business name registration is compulsory and must be completed
before the business starts operating. By registering the business name
with the SEC if the business is owned by corporation and partnership, it
will serve as an assurance that no other individual or group may legally
use the business name anywhere in the Philippines. The business name
needs to be approved first to ensure that the proposed business name is
not:
 To be used for business that is illegal, offensive, scandalous, or
contrary to propriety
 Identical or which nearly resemble business names already
registered with government office authorized to register names
 Composed purely of generic words
 A name by which by law or regulation cannot be appropriated
 Used to designate or distinguish or suggest the quality of any class of
goods, articles merchandise or service
 An abbreviation of names of any nation, inter-governmental or
international organization
 Misleading, deceptive or which misrepresent the nature of business
In applying for business name registration, it can be done through
online registration or over the counter registration in SEC branches. The

following are the procedures and requirements in getting business name
certificate:
Table 88.
SEC Registration Procedures
Procedures
1. Verify the availability of the company name with the Securities and
Exchange Commission (SEC)
2. Proceed to the SEC Office and fill up Name Verification Slip. Once
approved, pay the corresponding fee for name reservation.
3. Obtain bank certificate of deposit of the paid in capital.
4. Notarize articles of incorporation and treasurer's affidavit at the

notary.
5. File registration with the Securities and Exchange Commission
6. Fill in SEC Articles of Inc and By- Laws
7. Present 5 sets of the above documents to the Corporate and Legal

Unit for pre- filling conference and evaluation, then the documents
are stamped “Approved for Payment”.
8. Pay filling fee to the Cashier
9. Proceed to the receiving Section. The accomplished documents

are stamped “RECEIVED”.
10. The document shall be forwarded to the Corporate and Legal Unit
for processing and review.
11. Issuance of the Certificate of Registration for approval by the

Director.

Permits and Licenses
Business license is a permit to operate an enterprise that is
typically required by a government authority before operation
commences. Obtaining a business license usually involves paying a
small fee along with submitting an application to the appropriate federal,
state, county or local government agency. On starting up a business
there are requirements needed to acquire so that the business can
operate legally.
Table 89.
Permits and Licenses Application Procedures
Cost
List of
Procedures Permits/License
Requirements Incurred
Copy of Certificate
of Business Name
Registration from
the DTI
1. Get a Barangay Barangay Php50.00
Clearance Clearance 2 Valid IDs
Proof of Address
of your Business
Location
2. Obtain the business

permit application form
from the Cebu City Hall
Business Permit No requirements No Cost
representative at DTI
Application Form
National Economic
Research and Business
Action Center (NERBAC)

List of Cost
Procedures Permits/License
Requirements Incurred
3. Obtain the
community tax
certificate (CTC)
from the Cebu City Community Tax No
Php500.00
Hall representative Certificate (CTC) Requirements
at DTI National
Economic Research
and Business Action
Center (NERBAC)
4. Notarize the
business permit Business Permit Business Permit
Php50.00
application form at Application Form Application Form
the notary
You will be granted a temporary permit and you have 60 days to comply
with all of their requirements which are detailed below.
5. Obtain a Sanitary Contact their

Sanitary Permit. Php150.00
Permit. Special
Inspection Team
6. Obtain a Fire Safety Fire Safety to arrange a time
Php150.00
Permit Permit for them to visit
7. Obtain a Health your business
Health Permit premises. 3-4 Php50.00
Permit
8. Certificate of people will come
Building Permit to check out the Php480.00
Occupancy
building for fire
safety, sanitary
and
environmental
9. Obtain an compliance and
Environmental
Environmental they will leave a Php150.00
Clearance
Clearance list of things you
need to do and
the permits you
need to get.

Cost
Procedures Permits/License List of Requirements
Incurred
Take all your permits, registrations and compliances to City Hall

I. For issuance of
Assessment for
Payments
1.) Duly filled-up and
notarized application
form (must be signed
by the owner if Single
Proprietor and by the
representative if
(Corporation/
Partnership/
Cooperative)
2.) Photocopy of one
valid ID of the signatory
10. A. 3.) Personal proof of
Obtain Mayor’s Business billing of owner (if Php25,000.00
a
Permit single proprietor)
Mayor’s
Permit 4.) Picture of the
business location that
includes the nearby
establishments
5.) For partnerships or
corporations – Certified
True Copy of
Certificate of
Registration from the
Securities and
Exchange
Commission, and
Articles of
Incorporation and By-
laws.

Permits/ Cost
Procedures List of Requirements
License Incurred
II. For the issuance of Mayor’s

Business Permit
1. Assessment Sheet
2. Original Copy of Official
10. B. Obtain
Receipts of payment for
a Mayor’s
business taxes, fees and
Permit
charges
3. Original Copy of Community
Tax Certificate of the current
year
III. For verification of
requirements (must be
complied within 60 days from
the issuance of Mayor’s
Business Permit) - Submit
original and photocopy of the
following documents:
Mayor’s
1. All of the documents
Business
enumerated under I and II above
Permit
2. Barangay Clearance with the
official receipt of payment
3. SSS, PHILHEALTH, and
10 C. Obtain
PAG-IBIG Clearance
a Mayor’s
4. Sanitary Permit together of the
Permit
List of Employees duly certified
by the City Health Officer
5. Fire Safety Inspection
Certificate
6. Real Property Tax Clearance
or Certificate of NO
DELINQUENCY of the
immediately preceding year, if
the property is owned by the
applicant OR Contract of Lease
if renting the building and/or land
(submit 2 photocopies)

7. Taxpayer Identification
Number (TIN), BIR issued
Certificate of Registration (COR),
Proof of Payment of BIR Annual
Registration Fee of Php500.00
per establishment
8. Community Tax Certificate of
Employees
9. Occupational Tax and
Professional Tax of Employees
10. Official Receipt of the
Registration of Weights and
Measures if engaging with
Weights and Measures
11. Other Requirements from
National and/or Local
Government Agencies as the
case maybe (Additional
Requirements based from the
Joint Inspection Team Remarks)
Total Cost
Php26,580
NOTE: The Mayor’s Business Permit for New Application issued will be revoked
after sixty (60) days if all mandatory requirements are not complied.

Figure 94. Sample Business Permit
The figure 94 shows the sample of business permit that proved that a
business is legible to operate.

Contract of Lease
It is a contract between a lessor and lessee that allows the lessee
rights to the use of a property owned or managed by the lessor for a
period of time. The agreement does not provide ownership rights to the
lessee however, the lessor may grant certain allowances to modify
change or otherwise adapt the property to suit the needs of the lessee.
During the lease period, the lessee is responsible for the condition of the
property.
Figure 95. Sample Contract for Lease

Bureau of Internal Revenue (BIR)
Registering your business with the Bureau of Internal Revenue
(BIR) is one of the things that a business owner needs to do to make
your business legal and to avoid risk of being tax evader. To legalize the
company it must complete the whole registration process of the Bureau
of Internal Revenue (BIR). Here are some tips that will help the company
registering their business with the Bureau of Internal Revenue (BIR).
The following are the procedures and requirements in legalizing
the company:
Table 90.
BIR Registration Procedures
Procedures Requirements
1. Prepare or accomplish in 3 copies

the following BIR forms needed for
the business.  BIR FORM 1901
(Application Form)
 BIR FORM 0605 ( Payment
Form)
 BIR FORM 2000
(Documentary Stamp Tax
on Lease)
2. Register the business/ trade name

with the BIR Revenue District Office  Mayor’s Permit or
(RDO) having jurisdiction over the Application for Mayor’s
registered address of the business Permit
establishment.  ·Contract of Lease
 DTI Certification

Procedures Requirements
3. After the payment has been made,
go back to your RDO. Get a queue  BIR FORM 1901
number from the guard. Go to the (Application Form)
registration section for the receiving
of your application. Wait for your turn  Photocopy of Paid BIR
to be called and submit a photocopy FORM 0605 (Payment
of BIR form payments, special BIR Form)
payment form (all Accredited Banks
of RDO have a special payment form  Photocopy of Paid BIR
for BIR only) and other documentary FORM 2000 (Documentary
requirements. Stamp Tax on Lease)
 Contract of Lease or Land

Title/Tax Declaration
 Photocopy of Mayor’s
Permit
4. Schedule for release. Some of

RDOs may request you to attend a
seminar about the filing of the taxes
before the actual release of
Certificate of Registration but some
do not; be prepared just in case.
Also, don’t forget to ask for an “Ask
for Receipt” sign. Some RDOs will
automatically give it to you together
with the COR and some do not. So
to be sure, just ask for it.

Table 91.
BIR Registration Cost Incurred
Requirement Cost
Annual registration fee Php 500.00
Certification fee Php 15.00
Documentary Stamp Tax Php 15.00
Total Cost Php 530.00
Social Security System (SSS) Registration
The Social Security System (SSS) is a social insurance institution.
It provides and administers a pension fund for workers in the private
sector that has the following social security benefits: sickness,
retirement, maternity, disability, death, funeral, and employee’s
compensation.
Single Proprietorship (SSS Employer Membership)
The owner or, in his absence, his legal spouse or, in their
absence, any representative with Special Power of Attorney (SPA) of a
single proprietorship business should accomplish and submit the SSS
Forms R-1 and R-1A with the photocopy of an Authority to Operate
from government office/s (e.g. Registration of Business Name,
Business Permit, or any proof of business operations)

Figure 96. The SSS Form R-1
The figure 96 is the form used to filling up employer registration with the
Social Security System (SSS).

SSS Employer Registration (Introduction/Reminders)
Table 92.
SSS Employer Registration Procedure
Procedures Requirement
1. Fill out the SSS Employer Registration Form

in two (2) copies and accomplish appropriate
parts:
 For Employer Main Office - Parts I and III
 For Employer Branch Office - Parts II and III
 Employment Report
(SS Form R-1A)
 Specimen
2. Submit this form to the nearest SSS office
Signature Card (SS
with requirements needed.
Form L-501)
 Sketch of your
business address.
3. The form shall be supported by applicable
required documents and signed by
authorized signatories. See table 3.1 and 3.2.
4. Pay the fee of P165.00 for Employer
Registration Plate at the SSS or at any SSS-
accredited bank and submit validated
Miscellaneous Payment Return (SS Form R-
6) or SS Form R-6 and Special Bank Receipt
with this form.

5. Notify SSS of any changes in data and the Employer Data Change
status of the employer's business operations Request (SS Form R-8)
to avoid being billed for period/s when no
contributions are due like the following:
 Temporary suspension, permanent cessation
or merger/consolidation of business
operations; and
 Changes in the employer's data such as
business name, address, ownership, legal
personality and other relevant information
6. Request for replacement of the Employer Application for Employer
Registration Plate, in case of loss or change Registration Plate.
of business name and/or address that will
result to change of SSS branch ownership.
7. Always use your 13-digit Employer Number
in all your transactions with the SSS.

SSS Form R-1A (Employment Report)
Figure 97. The SSS Form R-1A
The figure 97 is the form used in filling up the employment report with the
Social Security System (SSS).

Table 92.
Procedures for Getting A SSS
Procedures/ Instructions Requirements
1. Submit in two (2) copies and
indicate the types of employer and

SSS Employment Report
report by putting checkmarks on
the applicable boxes.
2. Employers are required to report
within thirty (30) days to the SSS all
its employees, who are subject to
compulsory coverage. Should such
employee die, becomes sick or
disabled or reaches the age of sixty
(60) without being reported by his
employer, the latter shall pay to the
SSS damages equivalent to the
benefits due had been reported on
time.
3. Misrepresentation of the true date
of employment, monthly earnings
or other data of employees is
punishable under the penal
provision of the SSS Law.

PhilHealth Insurance Registration
All government and private sector employers are required to
register with PhilHealth to enable them to provide social insurance
coverage to their employees.
To register with Phil health the company must submit the following
documents:
a. Employer data record (Form ER1)
b. Report of employee-members (Form ER2)
c. DTI/SEC Registration
d. BIR Registration
e. Copy of Business Permit
Upon submission of the required documents, the company shall
get the receiving copy of all the forms as proof of membership until Phil
Health releases the employer and employee numbers within three
months. The following are the documents/ forms that will be issued:
- PhilHealth Employer Number (PEN) and the Certificate of Registration
- Philhealth Identification Number (PIN) and Member Data Record
(MDR) of registered employees
Employers are required to display the Certificate of Registration in
conspicuous area of their offices.

Figure 98. PhilHealth Member Registration Form

Figure 99. Instructions on how to fill up the PhilHealth Member
Registration Form (PMRF)

Figure 100. Employee Data Record (ER1) Form

Figure 101. Report of Employee Members (ER 2)
Figure 102. Instructions to Report of Employee Members (ER2)

Figure 103. Employer’s Remittance Report (RF-1)
Pag-IBIG Fund Registration
Home Development Mutual Fund (HDMF) or also known as Pag-
IBIG Fund was an answer to the need for a national savings program
and an affordable shelter financing for the Filipino worker. Pag-IBIG is an
acronym which stands for Pagtutulungan sa Kinabukasan: IKaw,
Bangko, Industriya at Gobyerno.
How much should a member contribute?
The membership savings (MS) rate of all members, except for
non- working spouses of Pag- IBIG members, shall be as follows:

Table 93.
PAG-IBIG Fund Graduated Table
Monthly
MS Rate Employee Employer (if any)
Compensation
Php1,500.00 and below 1.0% 2.0%
Over Php1, 500.00 2.0% 2.0%
Employer shall remit two percent (2%) of the monthly
compensation of the contributing member as counterpart contribution.
The employer is not entitled to deduct from the wages or remuneration of
or, otherwise, to recover from the employee the employer's contribution.
Notwithstanding the said MS rates, a member may contribute more than
what is prescribed.

Table 94.
Requirements of Registration
A. Member Registration
1. Duly accomplished Member’s Data Form (MDF, HQP-PFF-039)
B. Employer Registration
1. Duly accomplished Employer’s Data Form (EDF, HQP-PFF-002)
2. Specimen Signature Form (SSF, HQP-PFF-003)
3. SSS Certification (if already registered with SSS)
4. Present Proof of Business Existence
 Sole Proprietorship
 DTI Certificate of Registration
 Business Permit/ Mayor’s Permit
 Partnership/Corporation/Foreign
 Owned Corporation
 Securities and Exchange Commission (SEC) Certificate of
Partnership/ Incorporation
 Approved Articles of Partnership/Incorporation and By-
Laws
 Business Permit/ Mayor’s Permit

Table 95.
Procedure on the Registration of Pag- IBIG for Individual Registrant
Individual Registrant
Responsible
Procedures
Person
1. The registrant may have an option to register thru

any of the following:
 Register online thru Pag- IBIG website at
www.pagibigfund.gov.ph
 Submit duly accomplished Member’s Data Frontliner/Members
Form (MDF, HQP-PFF-039) at the branch Services Officer III
 Register online at the branch.
2. Upon successful registration, the registrant will

receive an SMS notification informing him of
Registration Tracking Number (RTN) and
instruction on how to get the Pag- IBIG Membership
ID (MID) Number thru SMS.
Employer
1. The employer may have an option to register thru

any of the following:
 Register online thru Pag- IBIG website at
www.pagibigfund.gov.ph
 Submit duly accomplished Employer’s Data Frontliner/Members
Form (MDF, HQP-PFF-002) at the branch Services Officer III
 Register online at the branch.
2. Upon successful registration, the Employer will
receive an SMS notification informing him of
Registration Tracking Number (RTN).
3. The Pag-IBIG Branch will notify the Employer of the
Pag-IBIG Employer ID Number.

Figure 104. Pag- Ibig Membership Registration Form
DEPARTMENT OF LABOR AND OF EMPLOYMENT (DOLE)
Registration
DOLE is the national government agency that is responsible for
formulating policies and implementing programs in the field of labor and
employment. The agency protects workers and their welfare by enforcing
employment and labor laws. To be registered in DOLE, the company
should release a cash bond as an assurance of the companies’
fulfillment of their obligations; in cases where the party fails to comply

with the obligation, the money is forfeited in favor of the latter. Upon
renewal of the Permit, cash bond is not anymore a part of the fee that
the company will pay.
DOLE Registration Cost Incurred
Table 96.
DOLE Registration Cost Incurred
Requirement Fee
Filing Fee Php 3,000.00

License Fee Php 6,000.00
Cash Bond Php 25,000.00
Total Php 34,000.00
Figure 105. DOLE Registry of Establishment

Table 97.
Food and Drug Administration (FDA) License Registration
Procedures
1. Classification of products offered.
2. Classification of establishment.
3. Determine License to Operate (LTO) type required by the establishment.

4. Determine the type of application applied for, below are the different
types of application:
 Initial Issuance of LTO Issuance of License to Operate prior to
opening of the establishment and start of operations
 Renewal of LTO Extension of validity of the LTO after
inspection and approval of BFAD
 Amendment of LTO Re-issuance of LTO to reflect changes in
circumstance of the establishment, after approval of BFAD
 Change in ownership
 Change in Establishment Name
 Transfer of location of facilities
 Addition or deletion of activities
 Addition or deletion of products
 Addition or deletion of sources
 Change in name and address of sources
 Replacement of lost LTO

General Requirements Notes/ Remarks
a. Notarized Certificate authorizing the
1. Notarized person who signed in behalf of the
Accomplished establishment/ company,if he/she is not the
Application for owner or one of the incorporators as
Authorization registered with DTI/SEC
Form (Annex A- b. Petitioner should be one of the
1) Incorporators. If the petitioner is not the
owner/ incorporator, copy of Secretary
Certificate/ Board Resolution/
a. If Single Proprietorship, valid Certificate
of Business Name Registration with the
Department of Trade and Industry
b. If Corporation or Partnership, valid
2. Proof of
Registration with Securities and Exchange
Business
Commission (SEC) and Articles of
Registration
Incorporation or Partnership
c. If Cooperative, valid Certificate from
Cooperative Development Authorities and
by laws
a. Valid notarized Contract of Lease / Sub-
Lease/ Certificate of Occupancy of the
space or building occupied
3. Proof of
b. Transfer Certificate of Title (TCT) if
Occupancy (per
owned and notarized Certificate of
facility and/ or
Occupancy (if owned by one of the
address
incorporators)
declared as part
c. Clearance from the Condominium/
of the
Building Administration allowing the use of
establishment)
the unit for business purposes – as
necessary
a. Valid notarized Contract of Lease / Sub-
Lease/ Certificate of Occupancy
b. Transfer Certificate of Title (TCT) if
4. Proof of
owned and notarized Certificate of
Occupancy-
Occupancy (if owned by one of the
Warehouse or
incorporators)
Stock Room
c. Valid notarized Warehousing Agreement
(Third Party Logistics)
Manufacturer Photocopy Valid Contract of Lease

5. Proof of
of the space / building occupied (if the space/bldg.
Occupancy
is not owned)
a. The list of food products to be
6. Product list manufactured, processed or repacked with
proposed brand name per product
b. The list of products to be distributed, sold,
or offered for sale or use, as appropriate,
including the following information per
product:
 Business name and address of
direct source
facility where the product is last
packaged, if different form direct
source
facility where product is last
processed, if different from last
packaging site and direct source
 If product is to be imported, a unique
global product identification number
(if applicable)
Graphic illustration indicating the address,
landmarks, immediate environment, type of
building, and Global Positioning System (GPS)
coordinates (if available) for each facility and/ or
7. Location Map
address declared part of the establishment
 Food Manufacturer- Manufacturing Plant
 Food Distributor- Office and Warehouse/s (if
different from the Office)
8. Floor Plan/  Food Manufacturer – Manufacturing plant
Layout with  Food Distributor- Office and warehouse/s (if
dimensions different from the Office)
9. Proof of
N/A
Payment Fees
Detailed Requirements for

Notes/ Remarks
Repacker
a. Name of Product
1. Description of the product to be b. Physicochemical
repacked Specifications
c. Microbiological Specifications
2. Description of repacking Include flowchart with quality control
process points
3. Quality Control Procedures N/A
4. Results of analysis of Finished
Product/s showing compliance N/A
with applicable standards

5. Photocopy of duly notarized License to Operate (LTO) of the
valid contract or agreement manufacturer where the product will
with the manufacturer be sourced for repacking
6. Facsimile of proposed label,
compliant with FDA labelling N/A
requirements
Table 98.
Cost Summary Business Permits and Licenses
Government Agencies Requirements Cost Incurred
Name Registration Fee Php 500.00

DTI Registration
Documentary Stamp Tax Php15.00
Barangay Clearance
Permits and Licences Php 26, 580.00
Police Clearance
Annual Registration Fee Php 500.00

BIR Registration
Certification Fee Php 15.00
Documentary Stamp Php 15.00
SSS Employer
SSS Registration Php 165.00
Registration Plate
PHILHEALTH Insurance
No Charge
Registration
PAG-IBIG Registration No Charge
Filing Fee 3,000

DOLE Registration License Fee 6,000
Cash Bond 25,000
FDA Registration 24, 000
Total Php 85, 790.00
6.2 Taxation Aspect

Property Tax for Land
Property Tax for Building
Property Tax for Equipment

CHAPTER VII
FINANCING AND FINANCIAL ASPECT
In this chapter, the discussion of financial aspect as major aspect of
establishing business will be discuss in a detailed manner. This will be the final
check whether the business is financially feasible.
 Cost Breakdown
 Cost of Building Renovation
Table 99.
Breakdown of Renovation Cost
Type of Cost Amount (Php)

Supervision Fee 3,500.00
Material 235,831.42
Labor 21,150.00
260,481.42
Total Cost
 Cost of Advertising
Table 100.
Cost of Advertising
Particulars Allocation
Balloons (during store opening) 2,000.00
Flowers (during store opening) 1,500.00
Flyers 7,500.00
Posters 13,000.00
Freebies 5,000.00
TV Advertising 100,000.00
Social Networking Advertising 30,000.00
Total Cost 159,000.00
The budget for advertising will be for 5 business years, allocation of
amount will be reflected on the financial statement.

 Cost of Licenses and Registration
Table 101.
Cost for Licenses and Registration
Cost for licenses and registration

Activities Cost (Php)
SEC Registration 565.00
Local business permit 26,580.00
BIR Registration 530.00
DOLE 34,000.00
Vehicle Registration 2,000.00
FDA Registration 24,000.00
87,675.00
Since the organization is a corporate organization, a registration in
Security and Exchange Commission should be done. A vehicle registration thru
Malayan Insurance of Malayan Bank is also allocated.

 Furniture and Fixture
Table 102.
Cost of Furniture and Fixture
Furniture Unit Cost per Unit (Php) Quantity Total Cost

Customers Table pc 1,000.00 4 4,000.00
Customers Chair pc 1,560.00 3 4,680.00
Display Racks pc 10,000.00 5 50,000.00
Total 58,680.00
Administrative
Furniture Unit Cost per Unit (Php) Quantity Total Cost
Filing Cabinet pc 2,500.00 1 2,500.00
Table pc 2,000.00 5 10,000.00
XY-693 Low Back Mesh Office Chair pc 2,900.00 5 14,500.00
Total 27,000.00
Production
Furniture Unit Cost per Unit (Php) Quantity Total Cost (Php)
Stainless Steel Tables pc 25,000.00 2 50,000.00
Chair pc 1,150.00 6 6,900.00
Locker pc 5,000.00 1 5,000.00
Total 56,900.00
Lightings Unit Cost per Unit (Php) Quantity Total

Incandescent Bulb pc 300.00 6 1,800.00
Octopus Bulb pc 400.00 7 2,800.00
Total 56,900.00
A customer will be provided with limited tables and chair, 6 display racks
for five vacuum fried fruits with 5 variants. Filing cabinet will be put at the admin
office for record-keeping ,tables and chairs will be provided for management
team. Meanwhile, the repacking area will be provided with stainless steel tables
for repacking operations.

 Office Equipment
Table 103.
Cost of Office Equipment
Office Equipment Unit Cost per Unit Quantity Total Cost

Printer with Scanner Epson L210 unit 4,995.00 1 4,995.00
Lenovo H3050 Computer unit 29,990.00 2 59,980.00
HP Laptop unit 19,000.00 3 57,000.00
Fujidenzo Hot and Cold Water Dispenser unit 5,998.00 1 5,998.00
Punch Card Attendance Machine unit 5,500.00 1 5,500.00
Koppel 2 HP Window Type Air Conditioner unit 22,995.00 1 22,995.00
Total 156,468.00
The General Manager, General Accountant ,Sales Manager and HR
Manager will be provided with personal computers and printers for tedious job
the position offers. While the middle managers and staffs will be provided with
Laptops. Also, the office will be powered by the Koppel 2 Horsepower Air
conditioner and Hot and Cold Water Dispenser for employees water
consumption.
 Primary Equipment
Table 104.
Primary Equipment
Cost of Primary Equipment

Primary Equipment Unit Cost per Unit Quantity Total Cost
Stainless Steel Basin piece 1,500.00 6 9,000.00
Digital Weighing Scale piece 4,800.00 6 28,800.00
Tiger Impulse Sealer piece 895.00 2 1,790.00
Scooper piece 500.00 2 1,000.00
Price Gun piece 1,500.00 3 4,500.00
Plastic Printing and Laminator unit 10,000,000.00 1 10,000,000.00
Total 10,045,090.00

The primary equipment that will be used during the repacking operations
are stainless steel basin as recommended by Food Safety Practice Standards,
digital weighing scale for accurate weighing of the vacuum fried fruit chips , a
graduated scooper and a tiger impulse sealer for sealing of the stand up
pouches.
 Cost of Safety and Sanitary Tools
Table 105.
Cost of Safety Gadget and Sanitary Tools
Safety and Sanitary Unit Cost per Unit Quantity Total Cost (Php)
White Slip-on Rubber Shoes pair 149.75 12 1,797.00
Black Hairnet pc 50.00 50 2,500.00
Nutex Nitrile Gloves pc 50.00 50 2,500.00
Transparent PlasFace Mask pc 50.00 20 1,000.00
Plastic Apron pc 15.00 50 750.00
Cold HL Hand Dryer pc 2,527.00 1 2,527.00
Clean Up Complete Set Mop pc 499.75 1 499.75
Kapper Fire Extinguisher pc 2,665.00 2 5,330.00
First Aid Kit set 4,655.00 1 4,655.00
Broom pc 110.00 1 110.00
Dustpan pc 80.00 2 160.00
Trash Can pc 299.00 3 897.00
Pail pc 45.00 2 90.00
Liquid Soap Dispenser pc 750.00 1 750.00
Toilet Paper Dispenser pc 409.99 2 819.98
Toilet Brush pc 199.00 1 199.00
Plunger pc 175.00 1 175.00
Rags pcs 1.00 50 50.00
Rat Cage pc 384.75 5 1,923.75
Every food industries require observing and adhering safety and
cleanliness during production and normal operations of the company. Thus,
hygienic equipment and cleaning will be issued be used by the employees. In
addition, safety should be of utmost priority, safety equipment such fire
extinguisher will be used if there is an unwanted fire.

 Cost of Supplies and Consumables
Table 106.
Cost of Supplies and Consumables
Supplies and Consumables Unit Cost per Unit Quantity Total Cost
Ballpens box 200.00 1 2400.00
Bond Paper Short ream 114.00 12 1368.00
Bond Paper Long ream 121.00 12 1452.00
Calculator pc 274.55 4 274.55
Fastener box 50.00 1 300.00
Folder Long pc 5.50 100 550.00
Folder Short pc 4.50 100 450.00
Liquid Eraser set 122.25 6 733.50
Markers pc 56.00 6 336.00
Paper Clips pack 8.50 1 51.00
Punchers pc 220.00 1 220.00
Staplers pc 87.00 4 348.00
Scissors pc 50.00 4 200.00
Scotch Tape pc 15.00 1 15.00
Staple Wire pc 35.00 1 35.00
Punch Cards pc 10.00 108 1080.00
Price Gun Labels pc 25.00 10 250.00
Price Gun Ink pc 120.00 10 1,200.00
Ink Cartridge set 295.00 12 3,540.00
Manual Stamp pc 140.00 2 280.00
Stamp Pad pc 125.00 2 250.00
Pest Catch Sheet pc 80.00 50 4,000.00
Tissue Rolls bag 96.75 12 1,161.00
Hand Soap pc 69.00 24 1,656.00
Detergent Powder pcs 5.00 20 100.00
Dishwashing Liquid pc 48.00 24 1,152.00
Sponge pc 20.00 20 400.00
Bathroom Freshener pc 10.00 20 200.00

 Material Handling Equipment
Table 107.
Cost of Material Handling Equipment
Equipment Unit Unit Cost Quantity Total Cost

Food Container pc 2,500.00 10 25,000.00
Crate pc 3,000.00 3 9,000.00
Trolley pc 9,799.75 3 29,399.25
Total 63,399.25
 Vehicle
Table 108.
Cost of Vehicle
Type of Vehicle Unit Unit Cost Quantity Total Cost
Foton Tornado 2 Aluminum Van unit 820,000.00 1 820,000.00
Total 820,000.00
The van will be used to transport the vacuum fried fruit chips during
purchasing. Aluminum van will be used to prevent damage due to weather
conditions of the purchased chips.
 Store Equipment
Table 109.
Cost of Store Equipment
Store Equipment Unit Cost per Unit (Php) Quantity Total Cost
Points of Sale Machine unit 55,000.00 1 55,000.00
Total 55,000.00

 Depreciation Expense
This refers to amount or percentage by which something decreases in value over time.
Table 110.
Depreciation Expenses
Production
Furniture Unit Cost per Unit (Php) Quantity Useful Life Depreciation Total Depreciation
Stainless Steel Tables pc 25,000.00 2 15 1666.67 3,333.33
Locker pc 5,000.00 1 10 5000.00 5,000.00
Chair pc 1,150.00 6 5 230.00 1,380.00
Administrative
Furniture Unit Cost per Unit (Php) Quantity Useful Life Depreciation Total Depreciation
Filing Cabinet pc 2,500.00 1 10 250 250.00
Table pc 2,000.00 5 5 400 2,000.00
XY-693 Low Back Mesh Office Chair pc 2,900.00 5 5 580 2,900.00
5150.00
 Vehicle
Vehicle
Description Unit Cost per Unit (Php) Quantity Useful Life Depreciation Total Depreciation
Foton Tornado 2 Aluminum Van unit 820,000.00 1 5 164,000.00 164,000.00

 Material Handling
Equipment Unit Unit Cost Quantity Useful Life Depreciation Total Depreciation
Food Container pc 2,500.00 10 5 500 5,000.00
Crate pc 3,000.00 3 5 600 1,800.00
Plastic Trolley pc 9,775.75 3 10 977.58 2,932.73
Primary Equipment Unit Cost per Unit Quantity Useful Life Depreciation Total Depreciation
Stainless Steel Basin piece 1,500.00 2 5 300.00 600.00
Digital Weighing Scale piece 4,800.00 1 5 960.00 960.00
Tiger Impulse Sealer piece 895.00 2 5 179.00 358.00
Price Gun piece 250.00 3 5 50.00 150.00
Scooper piece 500.00 2 7 71.43 142.86
Plastic Printer and Laminator unit 10,000,000.00 1 30 333,333.33 333,333.33
Total 335,544.19
Store Equipment Unit Cost per Unit (Php) Quantity Useful Life Depreciation Total Depreciation
Points of Sale Machine unit 55,000.00 1 10 5,500.00 5500
Office Equipment Unit Cost per Unit Quantity Useful Life Depreciation Total Depreciation
Printer with Scanner Epson L210 unit 4,995.00 1 5 999.00 999.00
Lenovo H3050 Computer unit 29,990.00 2 5 5,998.00 11,996.00
HP Laptop unit 19,000.00 3 5 3,800.00 11,400.00
Fujidenzo Hot and Cold Water Dispenser
unit 5,998.00 1 5 1,199.60 1,199.60
Koppel 2 HP Window Type Air Conditioner
unit 22,995.00 1 5 4,599.00 4,599.00
Punch Card Attendance Machine unit 5,500.00 1 5 1,100.00 1,100.00

Straight line depreciation method is used to calculate the depreciation value of the selected equipment. The
total depreciation of the company’s equipment ranges to Php 225,023.73. (See Appendix K for detailed formula)
 Direct Labor
Table 111.
Cost of Direct Labor
1 2
Headcount 1 6 1 1 8 1
Direct Labor Team Leader Production Worker Cashier Team Leader Production Worker Cashier
Daily Wage (Php) 380.00 353.00 353.00 380.00 353.00 353.00

Annual Wage 114,000.00 635,400.00 105,900.00 114,000.00 847,200.00 105,900.00
Holiday Pay 4,940.00 27,534.00 4,589.00 4,940.00 36,712.00 4,589.00
Total Wages 119,320.00 663,287.00 110,842.00 119,320.00 884,265.00 110,842.00
893,449.00 1,114,427.00
Over All Total
Business Year
3 4 5
Headcount
1 6 1 1 8 1 2 10 1
Direct Labor Team Leader Production Worker Cashier Team Leader Production Worker Cashier Team Leader Production Worker Cashier
Daily Wage (Php) 391.40 363.59 363.59 391.40 363.59 363.59 403.14 374.50 374.50
Annual Wage 117,420.00 654,462.00 109,077.00 117,420.00 872,616.00 109,077.00 241,885.20 1,123,493.10 112,349.31
Holiday Pay 5,088.20 28,360.02 4,726.67 5,088.20 37,813.36 4,726.67 10,481.69 48,684.70 4,868.47
Total Wages 122,899.60 683,185.61 114,167.26 122,899.60 910,792.95 114,167.26 252,770.03 1,172,552.30 117,592.28
920,252.47 1,147,859.81 1,542,914.61
Over All Total

The company wanted to company wanted to fully compensate the workers as much we value them as
assets of the company, there will be a salary increase of 3% beginning on its third year of the business year.
Table 112.
Cost of Indirect Labor
Business Year
1 2 3 4 5
Headcount 1 1 1 1 1
Direct Labor Production Supervisor Production Supervisor Production Supervisor Production Supervisor Production Supervisor
Monthly Wage (Php) 13,000.00 13,260.00 13,525.20 13,795.70 14,071.62

Annual Wage 156,000.00 159,120.00 162,302.40 165,548.45 168,859.42
Total Wages 156,000.00 159,120.00 162,302.40 165,548.45 168,859.42

Table 113.
Cost of Administrative Labor
Administrative Labor Monthly Base Salary (Php)
General Manager 30,000.00

General Accountant 10,000.00
Purchaser/Bookeeper 9,500.00
HR Manager 20,000.00
HR Staff 10,000.00
Driver 9,000.00
Security Guard 15,300.00
The salaries and wages of the administrative bodies is benchmarked on Jobstreet.com . The company’s
General Accountant is per appointment-paid basis ,since the purchaser will also function as bookkeeper of the
company.

Business Year
Position 1 2 3 4 5
General Manager 360,000 367,200 374,544 382,035 389,676
General Accountant 120,000 122,400 124,848 127,345 129,892
Purchaser/Bookeeper 114,000 116,280 118,606 120,978 123,397
HR Manager 240,000 244,800 249,696 254,690 259,784
HR Staff 120,000 122,400 124,848 127,345 129,892
Driver 108,000 110,160 112,363 114,610 116,903
Security Guard 183,600 187,272 191,017 194,838 198,735
Total 1,245,600 1,270,512 1,295,922 1,321,841 1,348,277
The administrative labor will also have an increase of 2% every year as company discretion of compensation.
 Fringe and Benefits
Table 114.
Summary of Annual Fringe and Benefits of Employees
Direct Labor Headcount Montly Salary SSS Philhealth PAG-IBIG 13th Month pay Total Cost
Team Leader 1 9,500.00 8,517.60 1,350.00 2,280.00 9,500.00 21,647.60

Production Worker 6 8,825.00 8,076.00 1,200.00 2,118.00 8,825.00 20,219.00
Cashier 1 8,825.00 4,476.00 1,200.00 2,118.00 8,825.00 16,619.00
Total 58,485.60
Direct Labor Headcount Montly Salary SSS Philhealth PAG-IBIG 13th Month pay Total Cost
Production Supervisor 1 13,000.00 11,612.40 1,950.00 3,120.00 13,000.00 29,682.40

Administrative Labor Headcount Monthly Base Salary SSS Philhealth PAG-IBIG 13th Month Pay Total Cost
General Manager 1 30,000.00 14,504.40 4,500.00 7,200.00 30,000.00 86,205.40

General Accountant 1 10,000.00 8,960.40 1,500.00 2,400.00 10,000.00 32,861.40
Purchaser 1 9,500.00 8,517.60 1,350.00 2,280.00 9,500.00 31,148.60
HR Manager 1 20,000.00 14,504.40 3,000.00 4,800.00 20,000.00 62,305.40
HR Staff 1 10,000.00 8,960.40 1,500.00 2,400.00 10,000.00 32,861.40
Driver 1 9,000.00 8,076.00 1,350.00 2,160.00 9,000.00 29,587.00
Security Guard 1 15,300.00 13,620.00 2,250.00 3,672.00 15,300.00 50,143.00
All employees employed in the company are compensated with SSS , Philhealth Insurance and PAG-IBIG Fund as
required by the Department of Labor (See Appendix L for Table of Contribution).Also a 13th month pay will be given during
end of business year.

 Utilities
Table 115.
Electricity Costs
Equipment Unit Wattage Daily Hour Usage Quantity Monthly KwH Cost/KwH Total Cost
Flourescent Lamp pc 40 8 7 9.60 10.19 684.77
Incandescent Bulb pc 20 8 6 4.80 10.19 293.47
Printer with Scanner Epson L210 pc 175 8 1 42.00 10.19 427.98
Lenovo H3050 Computer unit 225 8 3 54.00 10.19 1,650.78
HP Laptop unit 60 8 4 14.40 10.19 586.94
Fujidenzo Hot and Cold Water Dispenser unit 640 8 1 153.60 10.19 1,565.18
Koppel 2 HP Window Type Air Conditioner unit 1913 8 2 459.12 10.19 9,356.87
Source:VECO, Charge per Kilowatt-Hr: Php 10.19 as of January 2016

 Water Consumption
Table 116.
Water Consumption
Activities Headcount Ave Frequency Consumption Rate Consumption/Mo. Consumption/L

Cubic Meter Cost/m3
Gallons/use Gallons/use
Handwashing of Employees 18 2 0.5 504 1,907.64 1.91 1,110.25
Toilet Flushing 18 2 1.6 1,613 6,104.45 6.10 3,552.79
Handwashing after toilet use 18 2 0.5 504 1,907.64 1.91 1,110.25
2,621 9,920 9.92 5,773.28
Since there is no water will be consumed during the production process, water will only be consumed by
employees personal necessities.

 Telephone and Internet
Table 117.
Telephone and Internet Consumption
Particular Unit Monthly Consumption Annual Consumption Total Cost

Globe Telecom Plan package 1,300.00 15,600.00 15,600.00
Total 15,600.00

7.1 Financing Aspect
Major Assumption
 There will be foreign investor who invest in the amount of
P 7,000,000.00
 One of the incorporators of this project, Mr. Anthony Tabay will also
invest Php 3,000,000.00
 The owners of the company will invest Php 1,000,000.00 each
7.1.1 Initial Capitalization
Capitalization refers to the monetary value of the assets of a
business, as opposed to its expenses. Initial capitalization or startup
capital is simply the money required to get a new business started. A
firm's initial capitalization must include funds to buy assets and pay bills
until sales start coming in.
Table 119.
Cost of Initial Capital
Description Amount
Fixed Asset 11,366,170.73
Pre-Operating Expenses 598,156.42
Working Capital 25,772,345.27
Total Initial Capital 37,736,672.42

Fixed Assets
A long-term tangible piece of property that a firm owns and uses
in the production of its income and is not expected to be consumed or
converted into cash any sooner than at least one year's time.
Table 120.
Fixed Assets
Summary of Fixed Assets
Furniture and Fixture 199,480.00

Vehicle 820,000.00
Office Equipment 156,468.00
Store Equipment 55,000.00
Primary Machine ,Tools and Equipment 10,045,090.00
Safety Gadget and Sanitary Tools 26,733.48
Material Handling Equipment 63,399.25
Total Asset 11,366,170.73
7.1.2 Pre-Operating Expenses
Pre-operating expenses includes any costs incurred during the
preliminary stage or start up of a new business. These expenses include
the cost related to the investigation of a potential new business, as well
as the actual costs associated with the forming or registering the
company.

Table 121.
Pre-operating Expenses
Activity Description/Particulars Cost Involved (Php)

Pre-Operating Cost Capitalized
Leasehold Improvement Cost 260,481.42
Installation Cost 10,000.00
Prepaid Rent 200,000.00
Sub-Total 470,481.42
Pre-Operating Cost Expensed
Conduct of Feasibility Study 5,000.00
Obtaining Business Permit and Licences 87,675.00
Advertising and Launching 20,000.00
Hiring and Training of Employees 15,000.00
127,675.00
Total 598,156.42
7.1.3 Operating Expenses
Operating expenses are the costs incurred in the normal course of
the business on a daily basis, but not directly associated with production.
These expenses are reported to the income statement of the business.

Table 122.
Operating Expenses
Operating Expense Annual Cost

Material Purchase 98,647,224.60
Rent Expense 1,200,000.00
Utility Expense
Electricity 174,791.92
Water 5,773.28
Telephone and Internet 15,600.00
Fuel and Gas 15,000.00
Maintenance Expense 6,000.00
Supply Expense
Office 245,928.60
Safety and Sanitary 26,733.48
Salary Expense
Direct 893,449.00
Indirect 156,000.00
Administrative 1,245,600.00
Insurance 24,000.00
Witholding Tax Expense 20,000.00
Fringe and Benefits 325,112.20
Total Operating Expense 103,001,213.08
Working Capital
Working capital is the measure of cash or liquid assets essential
for its day to-day operation. Working capital is the excess of current
assets over current liabilities and is used in declaration of dividend; it
includes cash needs, material inventories, in-process inventories,
finished goods inventories, account receivable, expendable supplies and
prepaid expenses. Working capital are usually from current operations,
sale of non-current assets, long term borrowing and member’s paid-up

capital. In this project, the working capital considered is for three (3)
months of operation.
Table 123.
Working Capital
Operating Expense Subsidy

Material Purchase 24,661,806.15
Rent Expense 300,000.00
Utility Expense
Electricity 43,697.98
Water 1,443.32
Telephone and Internet 3,900.00
Fuel and Gas 3,750.00
Maintenance Expense 1,500.00
Supply Expense
Office 61,482.15
Safety and Sanitary 6,683.37
Salary Expense
Direct 223,362.25
Indirect 39,000.00
Administrative 311,400.00
Insurance 6,000.00
Witholding Tax Expense 5,000.00
Fringe and Benefits 103,320.05
Total Operating Expense 25,772,345.27

7.1.4 Sources of Initial Capitalization
Table 124.
Sources of Initial Capitalization
Investors Amount
Joe S. Aperdo 1,000,000.00
Gerlyn B. Serato 1,000,000.00
Khylene P. Rubica 1,000,000.00
Anthony Tabay 3,000,000.00
Business Loan 25,000,000.00
Foreign Investor 7,000,000.00
Total Initial Capital 38,000,000.00
Sources of Funding
A principal amount of P 15,000,000.00 will be loan from Bank of
the Philippine Island (BPI) Sanciangko, Cebu Branch to suffice the
needed capital and the three owners will also invest Php1,000,000.00
each from their own pocket. Also there will be a foreign investor who will
invest P 7,000,000.00 and a stakeholder from Department of Science
and Technology would also invest P 3,000,000.00.
Amortization Schedule of Business Loan
This is the schedule of payments for paying off a loan, showing
the amount of principal and the amount of interest that comprise each
payment so that the loan will be paid off at the end of its term. An
amortization schedule breaks down the payments into interest and

principal, which is helpful because with an amortized loan these the
amounts vary with each payment.
Where: P= Principal Amount ; Php 15,000,000.00
i= interest ; 14.40%
D= Payment
n= Number of Periods; 15 (Annual Payment)
D= Php 2,491,136.592

Table 125.
Amortization Schedule
Period Outstanding Principal Interest Due at the End Payment Principal Repaid
at Beginning of the Period of the Period at the end of the period
1 25,000,000.00 3,600,000.00 3,729,108.368 24,870,891.63
2 24,870,891.63 3,581,408.40 3,729,108.368 24,723,191.66
3 24,723,191.66 3,560,139.60 3,729,108.368 24,554,222.89
4 24,554,222.89 3,535,808.10 3,729,108.368 24,360,922.62
5 24,360,922.62 3,507,972.86 3,729,108.368 24,139,787.11
6 24,139,787.11 3,476,129.34 3,729,108.368 23,886,808.08
7 23,886,808.08 3,439,700.36 3,729,108.368 23,597,400.08
8 23,597,400.08 3,398,025.61 3,729,108.368 23,266,317.32
9 23,266,317.32 3,350,349.69 3,729,108.368 22,887,558.65
10 22,887,558.65 3,295,808.45 3,729,108.368 22,454,258.73
11 22,454,258.73 3,233,413.26 3,729,108.368 21,958,563.61
12 21,958,563.61 3,162,033.16 3,729,108.368 21,391,488.41
13 21,391,488.41 3,080,374.33 3,729,108.368 20,742,754.37
14 20,742,754.37 2,986,956.63 3,729,108.368 20,000,602.63
15 20,000,602.63 2,880,086.78 3,729,108.368 19,151,581.04
16 19,151,581.04 2,757,827.67 3,729,108.368 18,180,300.34
17 18,180,300.34 2,617,963.25 3,729,108.368 17,069,155.22
18 17,069,155.22 2,457,958.35 3,729,108.368 15,798,005.21
19 15,798,005.21 2,274,912.75 3,729,108.368 14,343,809.59
20 14,343,809.59 2,065,508.58 3,729,108.368 12,680,209.80
21 12,680,209.80 1,825,950.21 3,729,108.368 10,777,051.65
22 10,777,051.65 1,551,895.44 3,729,108.368 8,599,838.71
23 8,599,838.71 1,238,376.77 3,729,108.368 6,109,107.12
24 6,109,107.12 879,711.43 3,729,108.368 3,259,710.18
25 3,259,710.18 469,398.27 3,729,108.368 0.08

The table shows the amortization schedule of our loan at BPI with 14.40%
interest payable for 15 years and compounded annually.
7.2 Financial Aspect
Assumption
 The researchers assumed that the expenses incurred every year
will move up to 1% every business year
 The Sales Return and allowances of 3% is benchmarked to our
direct competitor , Profoods International Corporation.
 The cost of goods sold is assumed to be greater than 10% of the
total annual material purchases.
 The revenue of the first business year only accounts the 10 months
of operation.
7.2.1 Income Statement
The income statement keeps track of the financial performance of
the company each business year. It is reflected on this financial
statement how the company incurs its expenses and revenues. This also
shows if the company is gaining or losing over the period. The income
statement shows the net income of the company every year.

Table 126.
Income Statement
SR&A Fruit Essentials Co.

Projected Income Statement
For the year Ended December 31
2016 2017 2018 2019 2020

Revenue
Gross Sales 104,563,350.00 129,334,407.62 133,311,440.65 137,410,767.45 141,636,148.55
Less: Sales Return 3,136,900.50 3,880,032.23 3,999,343.22 4,122,323.02 4,249,084.46
Cost of Goods Sold 108,511,946.40 111,848,689.44 115,288,036.63 118,833,143.76 122,487,262.93
Net Sales (7,085,496.90) 13,605,685.96 14,024,060.80 14,455,300.67 14,899,801.16
Gross Profit (7,085,496.90) 13,605,685.96 14,024,060.80 14,455,300.67 14,899,801.16
Pre-operating Expenses 598,156.42

Operating Expenses
Rent Expense 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00
Advertising Expense 50,000.00 40,000.00 30,000.00 22,500.00 16,875.00
Utility Expense:
Electricity 174,791.92 176,539.84 178,305.24 180,088.29 181,889.18
Water 5,773.28 5,831.01 5,889.32 5,948.22 6,007.70
Telephone and Internet 15,600.00 15,756.00 15,913.56 16,072.70 16,233.42
Fuel and Gas 15,000.00 15,150.00 15,301.50 15,454.52 15,609.06
Maintenance Expense 6,000.00 6,060.00 6,120.60 6,181.81 6,243.62
Supply Expense:
Office 245,928.60 248,387.89 250,871.76 253,380.48 255,914.29
Safety and Sanitary 26,733.48 27,000.81 27,270.82 27,543.53 27,818.97
Salary Expense:
Direct 893,449.00 1,114,427.00 1,375,467.15 1,603,074.49 2,246,221.29
Indirect 156,000.00 157,560.00 159,135.60 160,726.96 162,334.23
Administrative 1,245,600.00 1,270,512.00 1,295,922.24 1,321,841 1,348,277.50
Insurance Expense 24,000.00 24,240.00 24,482.40 24,727.22 24,974.50
Witholding Tax Expense 20,000.00 20,200.00 20,402.00 20,606.02 20,812.08
Depreciation Expense 558,357.12 558,357.12 558,357.12 558,357.12 558,357.12
Interest Expense 3,600,000.00 3,581,408.40 3,560,139.60 3,535,808.10 3,507,972.86
Fringe and Benefits Expense 413,280.20 417,413.00 421,587.13 425,803.00 430,061.03
Total Operating Expense 8,650,513.61 8,878,843.08 9,145,166.06 9,378,113.14 10,025,601.84
Net Operating Income (Loss) (16,334,166.93) 4,726,842.88 4,878,894.74 5,077,187.53 4,874,199.32

Less: Income Tax 30% 1,418,052.86 1,463,668.42 1,523,156.26 1,462,259.80
Net Income (Loss) (16,334,166.93) 3,308,790.01 3,415,226.32 3,554,031.27 3,411,939.52

Statement of Partners Equity
This is a financial report that shows the changes in total partner’s
capital accounts during an accounting period. Statement of Partner’s
equity is a financial statement that reports the increases and decreases
in the partners’ accounts over the course of a period.

Table 127.
Projected Statement of Partner’s Equity

Projected Statement of Partner's Equity
As of December 31,2016-2020
2016 Investor Tabay Aperdo Serato Rubica
Initial Investment 7,000,000.00 3,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00
add: Additional Investment
Parners' share of 2016 net income (6,533,666.77) (5,716,958.43) (1,361,180.58) (1,361,180.58) (1,361,180.58)
less: withdrawals
Partners' Equity End 466,333.23 (2,716,958.43) (361,180.58) (361,180.58) (361,180.58)
2017
Partners' Equity Beginning 466,333.23 (2,716,958.43) (361,180.58) (361,180.58) (361,180.58)
Parners' share of 2017 net income 1,323,516.01 1,158,076.50 275,732.50 275,732.50 275,732.50
less: withdrawals
Partners' Equity End 1,789,849.23 (1,558,881.92) (85,448.08) (85,448.08) (85,448.08)
2018
Partners' Equity Beginning 1,789,849.23 (1,558,881.92) (85,448.08) (85,448.08) (85,448.08)
Parners' share of 2018 net income 1,366,090.53 1,195,329.21 284,602.19 284,602.19 284,602.19
less: withdrawals
Partners' Equity End 3,155,939.76 (363,552.71) 199,154.12 199,154.12 199,154.12
2019
Partners' Equity Beginning 3,155,939.76 (363,552.71) 199,154.12 199,154.12 199,154.12
Partners' share of 2019 net income 1,421,612.51 1,243,910.94 296,169.27 296,169.27 296,169.27
less: withdrawals
Partners' Equity End 4,577,552.27 880,358.24 495,323.39 495,323.39 495,323.39
2020
Partners' Equity Beginning 4,577,552.27 880,358.24 495,323.39 495,323.39 495,323.39
Partners' share of 2020 net income 1,364,775.81 1,194,178.83 284,328.29 284,328.29 284,328.29
less: withdrawals
Partners' Equity End 5,942,328.08 2,074,537.07 779,651.68 779,651.68 779,651.68

7.2.2 Balance Sheet
The balance sheet provides the company the summary of the
assets they owned, their liabilities, and their stockholders’ equity as of
the period. This gives the company an insight of what they have and
what they owed.
Table 128.
Projected Balance Sheet

Projected Balance Sheet
For the year Ended December 31
2016 2017 2018 2019 2020
Asset
Cash 14,258,019.47 17,977,466.63 21,782,081.30 25,701,169.42 29,450,330.56
Prepaid Rent 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
Total Current Asset 14,458,019.47 18,177,466.63 21,982,081.30 25,901,169.42 29,650,330.56
Fixed Asset 11,366,170.73 11,366,170.73 11,366,170.73 11,366,170.73 11,366,170.73
Less: Accumulated Depreciation (558,357.12) (1,116,714.25) (1,675,071.37) (2,233,428.50) (2,791,785.62)
Total Non-current Asset 10,807,813.61 10,249,456.48 9,691,099.36 9,132,742.23 8,574,385.11
Total Asset 25,265,833.07 28,426,923.11 31,673,180.7 35,033,911.66 38,224,715.7
Liabilities and Partners Equity
Loan Payable 25,000,000.00 24,870,891.63 24,723,191.66 24,554,222.89 24,360,922.62

Interest Payable 3,600,000.00 3,581,408.40 3,560,139.60 3,535,808.10 3,507,972.857
Total Current Liabilities 28,600,000.00 28,452,300.03 28,283,331.26 28,090,030.99 27,868,895.48

Partner's Equity
Partner's Equity (3,334,166.93) (25,376.91) 3,389,849.40 6,943,880.67 10,355,820.20
Total Liabilities and Partner's Equity 25,265,833.07 28,426,923.11 31,673,180.7 35,033,911.66 38,224,715.7

7.2.3 Statement of Cash Flows
The statement of cash flow shows the cash inflows that the
company collects from its present operation and the cash outflows of the
company each business year. This determines whether the company still
has cash at the end of each year. It is a possibility that despite the
earnings of the company there may be a decrease in on hand cash.
Table 129.
Projected Cash Flows
SR & A Fruit Essentials Co.

Projected Cash Flows
December 31 2016-2020
2016 2017 2018 2019 2020
Cash Flow from Operating Activities
Net Income (16,334,166.93) 3,308,790.01 3,415,226.32 3,554,031.27 3,411,939.52
Depreciation Expense 558,357.12 558,357.12 558,357.12 558,357.12 558,357.12
Interest Expense 3,600,000.00 3,581,408.40 3,560,139.60 3,535,808.10 3,507,972.86
Prepaid Rent (200,000.00)
Net Cash Provided by Operating Activities (12,375,809.80) 7,448,555.53 7,533,723.04 7,648,196.49 7,478,269.50
Cash Flow from Investing Activities
Fixed Asset Acquisition (11,366,170.73) -
Net Cash Provided by Investing Activities (11,366,170.73) - - - -
Cash flow from Financing Activities
Cash Invested 13,000,000.00
Business Loan 25,000,000.00
Loan Payable (3,729,108.37) (3,729,108.37) (3,729,108.37) (3,729,108.37)
Cash provided by financing activities 38,000,000.00 (3,729,108.37) (3,729,108.37) (3,729,108.37) (3,729,108.37)
Net Increase in Cash 14,258,019.47 3,719,447.16 3,804,614.67 3,919,088.12 3,749,161.14
Cash at the Beginning of the year 14,258,019.47 17,977,466.63 21,782,081.30 25,701,169.42
Cash at the End of the year 14,258,019.47 17,977,466.63 21,782,081.30 25,701,169.42 29,450,330.56

7.2.4 Financial Performance
Financial Ratio
A sustainable business and mission requires effective planning
and financial management. Ratio analysis is a useful management tool
that will improve your understanding of financial results and trends over
time, and provide key indicators of organizational performance.
Managers will use ratio analysis to pinpoint strengths and weaknesses
from which strategies and initiatives can be formed. Funders may use
ratio analysis to measure your results against other organizations or
make judgments concerning management effectiveness and mission
impact
Liquidity Measurement Ratio
Liquidity is defined to be the ability to convert an asset to cash
quickly and also a measure of the extent a company has cash to meet
immediate short term obligations. The most common liquidity ratio is the
current ratio which is a financial ratio that measures whether or not a firm
has enough resources to pay its debts over the next 12 months. It is the
ratio of a firm’s current assets to its current liabilities.

Table 130.
Current Ratio
2016 2017 2018 2019 2020

Current Asset (7,141,899.20) (2,625,207.88) 1,966,666.55 6,661,592.28 11,173,524.09
Current Liabilities 17,160,000.00 16,781,179.74 16,347,809.36 15,852,033.65 15,284,866.23
Ratio -0.416194592 -0.156437624 0.120301534 0.420235815 0.731018769
The current ratio is one way of measuring the firm’s ability to meet current
debt or liabilities. The company is more solvent when the ratio is higher. A ratio of
greater than 1 is already good since this mean that the company has the ability to
pay or twice the ability to pay. The current liabilities of the café are the loan and
interest payable but still based on the current ratio liquidity test the company is in
a good position.
Debt Ratios
The test of debt services are used to show the project’s ability to
meet long-term obligations.
Debt-To-Net Worth Ratio
To obtain the ratio, total liabilities will be divided with tangible net
worth. This will indicate what proportion of equity and debt is using to
finance its assets.

Table 131.
Debt-to-Net Worth Ratio
2016 2017 2018 2019 2020

Total Liablities 17,160,000.00 16,781,179.74 16,347,809.36 15,852,033.65 15,284,866.23
Total Assets 3,926,395.82 7,884,730.02 11,918,247.33 16,054,815.94 20,008,390.62
Ratio 4.370420299 2.128313804 1.371662201 0.987369379 0.763922822
Debt-To-Equity Ratio
This measures the debt component of a firm’s capital to support a
company’s operations and growth. This ratio will indicate the financial
risk that a new project is facing. Same as the debt-to-net worth ratio,
lower ratio indicates lesser pressure and greater protection for the
creditors.
Table 132.
Debt-To-Equity Ratio
2016 2017 2018 2019 2020

Total Owners Equity (13,233,604.18) (8,896,449.72) (4,429,562.03) 202,782.29 4,723,524.39
Ratio -1.296698902 -1.886278265 -3.69061529 78.17267267 3.23590289
Profitability Indicator Ratios
Test of operational efficiency measures the operational
performance and efficiency of the proposed project.

Net Profit Margin
Net profit margin is the percentage of revenue remaining after all
operating expenses, interest, and taxes have been deducted. It shows
how the company converts revenue into profits available for
shareholders.
Table 133.
Net Profit Margin
2016 2017 2018 2019 2020

Net Income (26,233,604.18) 4,337,154.46 4,466,887.69 4,632,344.32 4,520,742.10
Sales (7,085,496.90) 13,605,685.96 14,024,060.80 14,455,300.67 14,899,801.16
Ratio 3.702436759 0.318775141 0.318515996 0.320459908 0.303409559
Return on Net Operating Profit
Return on net operating profit is obtained by dividing the profit
before interest and taxes by total tangible assets. This ratio will indicate
the relationship between the owner’s share of operations before taxes for
the year and the capital already contributed by the owners.

Table 134.
2016 2017 2018 2019 2020

Income Before Tax (26,233,604.18) 6,195,934.94 6,381,268.13 6,617,634.75 6,458,203.00
Total Tangible Assets (7,141,899.20) (2,625,207.88) 1,966,666.55 6,661,592.28 11,173,524.09
Ratio 3.673197202 -2.360169257 3.2447128 0.993401347 0.577991594
The table 134 shows the ratio of return on net operating profit which
increases annually. The higher the ratio means the greater probability of making
appreciable addition to the owner’s capital after payment of dividends and taxes.
Operating Performance Ratios
Asset Turnover
The asset turnover is obtained through dividing sales by total
tangible assets. This presents the amount of sales generated per peso of
assets and also indicates the efficiency by which the company deploys
its assets.
Table 135.
Asset Turnover
2016 2017 2018 2019 2020

Sales (7,085,496.90) 13,605,685.96 14,024,060.80 14,455,300.67 14,899,801.16
Ratio 1.007960247 -0.192949322 0.14023517 0.460840797 0.749910953

The table 135 shows the asset turnover which indicates that the value
obtained per year is high.
Return on Assets
This return on assets ratio expresses the owner’s or partner’s
share of the year’s operations related to the resources invested.
Table 136.
Return on Assets
2016 2017 2018 2019 2020

Net Income (Loss) (26,233,604.18) 4,337,154.46 4,466,887.69 4,632,344.32 4,520,742.10
Ratio 3.673197202 -1.65211848 2.27129896 0.695380943 0.404594116
Rate of Return of Partners Equity
Table 137.
2016 2017 2018 2019 2020

Net Income (Loss) (26,233,604.18) 4,337,154.46 4,466,887.69 4,632,344.32 4,520,742.10
Total Owners Equity (13,233,604.18) (8,896,449.72) (4,429,562.03) 202,782.29 4,723,524.39
Ratio 1.982347653 -0.487515199 -1.008426489 22.84392933 0.957069706

Payback Period
This refers to the time required to recover the cost of an
investment. The shorter the time the lesser the risk of the project is.

Table 138.
Summary of Ratios
Current Ratio
2016 2017 2018 2019 2020
Current Asset 14,458,019.47 18,177,466.63 21,982,081.30 25,901,169.42 29,650,330.56
Current Liabilities 28,600,000.00 28,452,300.03 28,283,331.26 28,090,030.99 27,868,895.48
Ratio 0.505525156 0.638875121 0.777209767 0.922076926 1.063921984
Debt-to-Net Worth Ratio
2016 2017 2018 2019 2020
Total Assets 25,265,833.07 28,426,923.11 31,673,180.66 35,033,911.66 38,224,715.67
Ratio 1.131963467 1.000892707 0.89297414 0.801795451 0.729080517
Debt-to Equity Ratio
2016 2017 2018 2019 2020
Total Owners Equity (3,334,166.93) (25,376.91) 3,389,849.40 6,943,880.67 10,355,820.20
Ratio -8.577854866 -1121.188355 8.343536214 4.045292871 2.69113358
Net Profit Margin
2016 2017 2018 2019 2020
Net Income (16,334,166.93) 3,308,790.01 3,415,226.32 3,554,031.27 3,411,939.52
Sales (7,085,496.90) 13,605,685.96 14,024,060.80 14,455,300.67 14,899,801.16
Ratio 2.305295897 0.243191709 0.243526206 0.245863531 0.228992286
2016 2017 2018 2019 2020
Income Before Tax (16,334,166.93) 4,726,842.88 4,878,894.74 5,077,187.53 4,874,199.32
Total Tangible Assets 14,458,019.47 18,177,466.63 21,982,081.30 25,901,169.42 29,650,330.56
Ratio -1.129765178 0.260038595 0.221948717 0.196021556 0.164389375
Asset Turn-over
2016 2017 2018 2019 2020
Sales (7,085,496.90) 13,605,685.96 14,024,060.80 14,455,300.67 14,899,801.16
Ratio -2.040508897 1.336019859 1.567454792 1.791811185 1.989981627
Return on Assets
2016 2017 2018 2019 2020
Net Income (Loss) (16,334,166.93) 3,308,790.01 3,415,226.32 3,554,031.27 3,411,939.52
Ratio -1.129765178 0.182027016 0.155364102 0.137215089 0.115072563
2016 2017 2018 2019 2020
Net Income (Loss) (16,334,166.93) 3,308,790.01 3,415,226.32 3,554,031.27 3,411,939.52
Total Owners Equity (3,334,166.93) (25,376.91) 3,389,849.40 6,943,880.67 10,355,820.20
Ratio 4.89902494 -130.3858327 1.007486148 0.511822054 0.329470719

CHAPTER VIII
SOCIO – ECONOMIC DESIRABILITY ASPECT
This part of the study seeks to present the socio-economic of the SR& A
Fruit Essential Company vacuum fried fruits, specifically how does the business
affects the society.
8.1 Socio-economic and Environmental Goals
A business shall provide both economic and social help in the
economy of the country. Establishing a business like the Fruittyssential
Hub in the center of Cebu City specifically in the Colon Street was
originated from the idea of producing nutritious snacks to the people. The
hub will serves nutritious snacks since it is composed of fruits that contains
a great amount of nutrients that was remain during the processes it
underwent.
The business provides help and opportunities of the economy since
it offers work to the unemployed individuals who seek to be employed
through the SR&A Fruit Essential Company once they are hired of the
business. The business will serve as their source of income to aid their
daily needs.
On the other hand the business will contribute to the government
through paying taxes as mandated by the law in form of liabilities. The
taxes that are paid can be a source of help for the betterment of the

country that could be used for the improvement of public services and as
well as government projects.
8.2 Impact Assessment
 Demographic Impact
The Fruittyssential Hub is open to all individuals who seek to
have a healthy lifestyle. In our Hub, it has no limitation when it comes
to gender and age since it offers food that can be consume by
everyone. Aside from that, customers can choose from the different
variants and kinds of fruits that is being display depending of the
budget and their taste of food. The price of the products depends on its
flavor or the type of vacuum fried fruit and variants.
 Selling Market Impact
In a business, competitors are always present and cannot be
eliminated. It is in the company’s technique to attract the customers to
avail their products and it is mainly in the marketing strategy. Marketing
Strategy is very essential in putting up a business. The direct
competitor of company are the companies that produces dried fruits
like the brands that they are producing as stated: 7D, Phillipine Brand,
Jojo’s, Guadalupe, Cebu, Cebu Best and many others. Although the
stated brands have established its name, the Fruit Essentials brand is
the pioneering brand of SR&A Fruit Essentials through Fruittyssential

Hub that produces and sells vacuum fried fruits that contains a larger
amount of nutrients rather than the dried fruits offered in the market.
 Income and Employment Impact
The main goal of a certain business is to have a high income
especially in the part of the owner. The business should generate
pleasingly between the owner and the employees to attain the main
goal of the business which is to generate income. Building a business
is a great opportunity for the owner to give job to the other people.
The business gives a great opportunity of the job seekers.
People who are unemployed have given a chance to be employed.
And it will be there opportunity of having an income.
 Tax Contribution
The SR&A Fruit Essentials Company is subjective to give a
great contribution to the government in the form of tax as mandated by
law until as it is operating. The implementation of the said project will
contribute to the public treasury in the form of fees gathered from the
issuance of the necessary permits and licenses during the pre-
operating period.

8.3 Cost and Benefit Analysis
Cost and benefit analysis is one approach in quantifying the socio-
economic profitability of a certain project. In this case, the benefit is
equivalent to the gross profit per year while the cost is the total operating
expenses. The method used in this study is the cost benefit ratio or also
known as profitability index.
Based on the result, the cost benefit ratio is .75 ≈ 1.0 which means that a
ratio greater than one is that the benefit generated of the introduction of vacuum
fried fruits to Cebu Locals through SR&A Fruit Essentials Company is greater
than the cost incurred. Thus, the proposed project is economically feasible.

CHAPTER IX
SUMMARY, FINDINGS AND RECOMMENDATIONS
9.1 Summary
The SR&A Fruit Essentials Company introduces the additional dried
fruit product families to the market with the aid of newly discovered state-
of-the-art technology, vacuum frying. Vacuum frying is a new methodology
of preserving fruits to be nutritious and micro essential nutrient-valued fruit
snack. The company will only serve as distribution channel by repacking
the vacuum fried fruit chips purchased from All Natural Essential from
Tacloban City, Philippines. The SR&A Fruit Essentials Company is a
corporate structure of organization that will also showcase and sell the
packed vacuum fried fruits namely; Vacuum Fried Guava, Vacuum Fried
Pineapple, Vacuum Fried Jackfruit , Vacuum Fried Indian Mango and
Vacuum Fried Guyabano thru Fruittyssential Hub of the company tied-up to
the production area.
9.2 Findings
The introduction of vacuum fried fruits to the locals of Cebu through
SR &A Fruit Essential Company thru Fruittyssential Hub is proven feasible
as reflected on the projected financial statements. The income average of
Php 12,000,000.00 pesos every business year is reflection of good and
feasible business .Also higher financial ratio proved that the business could
sustain through the years.

9.3 Recommendation
The researcher would like to recommend the following:
1. Constant innovation and outsourcing of close-to-store supplier to
reduced cost.
2. Procurement of machine and equipment should be done for future
development granting investors will invest for sufficient investment.
3. A website should be developed soon as an effective marketing and
promotional strategy to cater local and foreign orders through
online transactions.

APPENDIX A : SURVEY QUESTIONNAIRE AND RESULTS
Dear Respondent,
Good Day! Please answer the survey with deep honesty and sincerity for us to gather a
the relevant data needed in our feasibility study of vacuum fried fruit shop. The idea of vacuum
frying is frying the fruits below 40 degrees Celsius with the use of vacuum technology to retain the
nutrients. The data will be rest assured treated with strict confidentiality.
Yours truly,
BS Industrial Engineering 5,
Researcher
Name (Optional):_____________________ Permanent Address: _________________
Age: _______ Sex: __M __F
Educational Attainment: _______________
1. What is your monthly income?
53 Php 20,000.00 above

49Php 15,001.00-P 20,000.00
76Php 10,000.00-P 15,000.00
48Php 5001.00- P 10,000.00
26Php 5000 below
If you are a student, how much is your net daily allowance (excluding your fare
,etc.)?
Php 1000 above

Php 701.00- Php 1000.00
Php 401.00- Php 700.00 7
Php 101.00-Php 400.00 87
Php 100 below 30
2. Are you aware of any dried fruits/ candied dried fruit preserves from the Philippines as local
delicacies?
388 Yes
12 No
3. Do you eat dried fruits /candied fruits preserve ?

388Yes
12 No
4. How many packs of dried fruit do you usually buy in a month?

1 pack 169
2 packs 74
3 packs 65
4 packs 13
5 packs 36
6 packs 0
8packs 0
10packs 7
20packs 19
30packs 5
50packs 0
5. Where do you usually buy dried fruits?

336Supermarkets
27Souvenir Shops
20Hotels
7Others, please specify:______
6. Please check the following Dried fruits/ candied dried fruit preserves brands you know.(You may select
more than one)
190Philippine Brand
105R&M
787D
136Cebu Best
25Cebu
60Guadalupe
50Freshco
47Jojo’s
Others, please specify_____
7. If there will be Vacuum Fried fruits/ candied fruits available in the market are you willing to
taste it?
350Yes
33No
8. If there will be a Vacuum fried fruit shop at Colon Street Cebu ,are willing to drop by and buy
vacuum fried fruits.
333Yes
17No

If yes, how many packs are you willing to buy in a month ?
Vacuum 1 2 3 4 5 6 7 8 10 15 20 25 30 40 50 60 100 Others Total

Fried please
Fruits specify
Guava 267 25 5 17 25 1 12 11 3 329
Pineapple 138 81 16 6 28 2 28 11 10 3 323
Jackfruit 166 55 16 10 51 12 18 4 332
Indian 93 49 33 7 50 3 21 1 40 297
Mango
Guyabano 168 14 14 38 15 1 20 18 290
9. What particular variants are you willing to buy?
Vacuum Fried 100 150 250 500 1000 Others please Toal
Fruits grams grams grams grams grams specify
Guava 280 40 9 329
Pineapple 225 67 19 9 3 323
Jackfruit 190 97 33 7 5 332
Indian Mango 206 79 34 12 7 338
Guyabano 187 59 35 8 1 290

10. Are you amenable of the following prices of our vacuum fried fruits base on 100 gram-pack?
Decision
Vacuum Fried Fruits Yes No
Guava @ Php 40 288 19
Pineapple @ Php 42 313 14
Jackfruit@ Php 38 319 13
Indian Mango @ Php 35 316 9
Guyabano @ Php 38 286 11
11. Where do you want us to display our product in the future?

304Supermarkets
10Souvenir Shops
5Hotels
14Outlet Shop
Others, please specify:______
12. What particular vacuum fried fruits would you like to consume as snacks?
Please check at least five.
218Apple
226Banana
217Grapes
213Durian
229Ube
214Coconut
13. What do you consider when buying dried fruits/ candied dried fruit preserves? (Please rank from 1-5 with one
as the highest and 5 as the lowest )
Rank
Product 1 2 3 4 5
Factors
Price 88 222 50 3 12
Taste 58 83 183 10 15
Packaging 20 17 90 171 95
Brand 21 30 49 70 215
Health Benefits 199 11 16 8 19

Others Please
specify
14. In what occasion you would like to consume the vacuum fried ?
230Regular Snack Time
36Parties
82TV/ Movie Watching
12Others,___________________
15. How would you want our new product to be advertised?
106Word of mouth
223Television advertisement
41Radio advertisement
161Social networks (facebook, twitter, Instagram)
86Billboards
126Tarpaulins, flyers, signages
 Others, please specify:______
16. Would you like to recommend our product to a friend who are not fond of healthy snacks?
314Yes
20No
END OF QUESTIONNAIRE

APPENDIX B: MANUFACTRURING PROCESS (VACUUM FRYING)
Packing in Bag
Source: All Natural Essentials Manufacturing

APPENDIX C: MARKET SHARE CALCULATION
Criteria for Description Benefactors Count Weight

Weighted Customers Employees Owner
Selection
Product The business

provides    3 25%
product that
satisfy the
customers in
terms of quality
fruit preserves.
Price The business

provides    3 25%
competitive but
affordable
prices of fruit
preserve
products to the
customers.
Promotion The business    3 25%

provides
different
promotional
strategies to
attract more
customers
Place The business is    3 25%

located in
places that are
accessible for
the customers

Rate Description
10 years and above in the fruit preserved

19-25% market: highly demanded by the customer;
very affordable price; promotional activities
through television and online advertisement/
website ; place is accessible
13-18% 4-7 years in the fruit preserved market;

affordable price ; moderately demanded by the
customer ; promotional activities through
online advertisement ; place is accessible.
7-12% 1-3 years in fruit preserved market ;

competitive price;low demand by the
customer; promotional activities through
posters; place is accessible
1-6% Still new to fruit preserved market ;very low

demand by the customer; too high price;
promotional strategies through flyers; place
not quite accessible.

Market Share
Fruit Preserved Industry Product Price Promotion Place Total

Market Share
25% 25% 25% 25% 100%
Freshco 15 20 13 18 66 10.12
R&M 20 20 13 18 71 10.89
7D 25 19 24 20 88 13.50
Cebu Best 20 20 13 18 71 10.89
Cebu 12 20 13 20 65 9.97
Philippine Brand 25 19 24 20 88 13.50
Guadalupe 20 20 13 20 73 11.20
Jojo's 13 20 13 20 66 10.12
SR&A Fruit Essentials 6 20 18 20 64 9.82
Note: The market share is computed base on subjective assessment given the set criteria of
marketing mix decisions, the price, place, product and promotion. In order to get the percent
market share the score of each brand in every marketing mix decision aspect are summed up
and then divided with the brands over-all scores. The SR&A got a market share of 9.82% , yet
considering the biases during assessment , systematic errors and the available capacity and
investment factor , the proponents decided to capture 50% of the captured demand which is
4.91%.

APPENDIX D: AVAILABLE AND ACTUAL DEMAND (Vacuum Fried)
The available demand is computed by using the projected available market .By then a ratio and
proportion is being used to get the available demand:
Sample Computation for 100g of Guava:
Total Available Demand= 770,337 pcs of 100gram pack
Actual Demand is computed by multiplying the available demand with the market share
being captured which is 4.91 %.
Actual Demand= Available Demand x % Market Share
Actual Demand = 770 337 pcs x 0.0491
Actual Demand= 37,823 pcs x 100 gram
Actual Demand (grams)= 3,782,300
Actual Demand (kilograms)= 37,823 kilograms
Number of Packs100 gram= 37,824 packs
Annual Demand= Actual Demand x 12 Months
Annual Demand = 37,824 x 12 months= 453,888

Business Year 1 Month 1
Projected Available and Actual Demand of Guava
Packing Variant Number of Respondents Total Available Projected Total Actual Actual Actual D(kg) Sales No. of Packs
(gram) willing to avail Market Respondents Available Market Available Demand Demand Demand(g)
100 280 333 916,151.00 770,337 37,824 3,782,355.54 3,782.36 1,512,942 37,824
150 40 333 916,151.00 110,048 5,403 810,504.76 810.50 324,202 5,403
250 9 333 916,151.00 24,761 1,216 303,939.28 303.94 121,576 1,216
500 0 0 916,151.00 -
1000 0 0 916,151.00 -
44,443 4,896,800 4,897 1,958,720 44,443
Projected Available and Actual Demand of Pineapple
100 225 333 916,151.00 619,021
30,394 3,039,392.84 3,039.39 1,276,545 30,394
150 67 333 916,151.00 184,331
9,051 1,357,595.47 1,357.60 570,190 9,051
250 19 333 916,151.00 52,273
2,567 1,283,299.20 1,283.30 538,986 5,133
500 9 333 916,151.00 24,761
1,216 1,215,757.14 1,215.76 510,618 2,432
1000 3 333 916,151.00 8,254405 810,504.76 810.50 340,412 811
43,632 7,706,549 7,707 3,236,751 47,820
Projected Available and Actual Demand of Jackfruit
100 190 333 916,151.00 522,729 25,666 2,566,598.40 2,566.60 975,307 25,666
150 97 333 916,151.00 266,867 13,103 1,965,474.04 1,965.47 746,880 13,103
250 33 333 916,151.00 90,790 4,458 1,114,444.04 1,114.44 423,489 4,458
500 7 333 916,151.00 19,258 946 472,794.44 472.79 179,662 946
1000 5 333 916,151.00 13,756 675 675,420.63 675.42 256,660 675
913,400 44,848 6,794,732 6,795 2,581,998 44,848
Projected Available and Actual Demand of Indian Mango
100 206 333 916,151.00 566,748 27,827 2,782,733.00 2,782.73 973,957 27,827
150 79 333 916,151.00 217,345 10,672 1,600,746.90 1,600.75 560,261 10,672
250 34 333 916,151.00 93,541 4,593 1,148,215.07 1,148.22 401,875 4,593
500 12 333 916,151.00 33,014 1,621 810,504.76 810.50 283,677 1,621
1000 7 333 916,151.00 19,258 946 945,588.88 945.59 330,956 946
929,907 45,658 7,287,789 7,288 2,550,726 45,658
Projected Available and Actual Demand of Guyabano
100 187 333 916,151.00 514,475 25,261 2,526,073.16 2,526.07 959,908 25,261
150 59 333 916,151.00 162,321 7,970 1,195,494.52 1,195.49 454,288 7,970
250 35 333 916,151.00 96,292 4,728 1,181,986.11 1,181.99 449,155 4,728
500 8 333 916,151.00 22,010 1,081 540,336.51 540.34 205,328 1,081
1000 1 333 916,151.00 2,751 135 135,084.13 135.08 51,332 135
797,849 39,174 5,578,974 5,579 2,120,010 39,174


Packing VariantNumber of Respondents Total Available Projected Total Actual Actual Actual D(kg) Sales No. of Packs
100 280 333 944,368.00 794,063 38,989 3,898,850.23 3,898.85 1,559,540 38,989
150 40 333 944,368.00 113,438 5,570 835,467.91 835.47 334,187 5,570
250 9 333 944,368.00 25,523 1,253 313,300.46 313.30 125,320 1,253
500 0 0 944,368.00 -
1000 0 0 944,368.00 -
933,024 45,811 5,047,619 5,048 2,019,047 45,811
100 225 333 944,368.00 638,086 31,330 3,133,004.65 3,133.00 1,315,862 31,330
150 67 333 944,368.00 190,008 9,329 1,399,408.74 1,399.41 587,752 9,329
250 19 333 944,368.00 53,883 2,646 1,322,824.18 1,322.82 555,586 5,291
500 9 333 944,368.00 25,523 1,253 1,253,201.86 1,253.20 526,345 2,506
1000 3 333 944,368.00 8,508 418 835,467.91 835.47 350,897 835
916,009 44,976 7,943,907 7,944 3,336,441 49,293
100 190 333 944,368.00 538,829 26,456 2,645,648.37 2,645.65 1,005,346 26,456
150 97 333 944,368.00 275,086 13,507 2,026,009.67 2,026.01 769,884 13,507
250 33 333 944,368.00 93,586 4,595 1,148,768.37 1,148.77 436,532 4,595
500 7 333 944,368.00 19,852 975 487,356.28 487.36 185,195 975
1000 5 333 944,368.00 14,180 696 696,223.26 696.22 264,565 696
941,532 46,229 7,004,006 7,004 2,661,522 46,229
100 206 333 944,368.00 584,204 28,684 2,868,439.81 2,868.44 1,003,954 28,684
150 79 333 944,368.00 224,039 11,000 1,650,049.11 1,650.05 577,517 11,000
250 34 333 944,368.00 96,422 4,734 1,183,579.53 1,183.58 414,253 4,734
500 12 333 944,368.00 34,031 1,671 835,467.91 835.47 292,414 1,671
1000 7 333 944,368.00 19,852 975 974,712.56 974.71 341,149 975
958,548 47,065 7,512,249 7,512 2,629,287 47,065
Projected Available Demand of Guyabano
100 187 333 944,386.00 530,331 26,039 2,603,924.61 2,603.92 989,491 26,039
150 59 333 944,386.00 167,324 8,216 1,232,338.65 1,232.34 468,289 8,216
250 35 333 944,386.00 99,260 4,874 1,218,413.92 1,218.41 462,997 4,874
500 8 333 944,386.00 22,688 1,114 556,989.22 556.99 211,656 1,114
1000 1 333 944,386.00 2,836 139 139,247.31 139.25 52,914 139
822,438 40,382 5,750,914 5,751 2,185,347 40,382
Note: To get the annual demand actual demand will be multiplied by 12 months.


100 280 333 973,455.00 818,521 40,189 4,018,936.74 4,018.94 1,607,575 40,189
150 40 333 973,455.00 116,932 5,741 861,200.73 861.20 344,480 5,741
250 9 333 973,455.00 26,310 1,292 322,950.27 322.95 129,180 1,292
500 0 0 973,455.00 -
1000 0 0 973,455.00 -
47,223 5,203,088 5,203 2,081,235 47,223
100 225 333 973,455.00 657,740 32,295 3,229,502.74 3,229.50 1,356,391 32,295
150 67 333 973,455.00 195,860 9,617 1,442,511.22 1,442.51 605,855 9,617
250 19 333 973,455.00 55,542 2,727 1,363,567.82 1,363.57 572,698 5,454
500 9 333 973,455.00 26,310 1,292 1,291,801.09 1,291.80 542,556 2,584
1000 3 333 973,455.00 8,770 431 861,200.73 861.20 361,704 861
46,361 8,188,584 8,189 3,439,205 50,811
Projected Available Demand of Jackfruit
100 190 333 973,455.00 555,425 27,271 2,727,135.64 2,727.14 1,036,312 27,271
150 97 333 973,455.00 283,559 13,923 2,088,411.77 2,088.41 793,596 13,923
250 33 333 973,455.00 96,469 4,737 1,184,151.00 1,184.15 449,977 4,737
500 7 333 973,455.00 20,463 1,005 502,367.09 502.37 190,899 1,005
1000 5 333 973,455.00 14,616 718 717,667.27 717.67 272,714 718
47,653 7,219,733 7,220 2,743,498 47,653
Projected Available Demand of Indian Mango
100 206 333 973,455.00 602,197 29,568 2,956,789.17 2,956.79 1,034,876 29,568
150 79 333 973,455.00 230,940 11,339 1,700,871.44 1,700.87 595,305 11,339
250 34 333 973,455.00 99,392 4,880 1,220,034.37 1,220.03 427,012 4,880
500 12 333 973,455.00 35,079 1,722 861,200.73 861.20 301,420 1,722
1000 7 333 973,455.00 20,463 1,005 1,004,734.18 1,004.73 351,657 1,005
48,514 7,743,630 7,744 2,710,270 48,514
Projected Available Demand of Guyabano
100 187 333 973,455.00 546,655 26,841 2,684,075.61 2,684.08 1,019,949 26,841
150 59 333 973,455.00 172,474 8,468 1,270,271.08 1,270.27 482,703 8,468
250 35 333 973,455.00 102,315 5,024 1,255,917.73 1,255.92 477,249 5,024
500 8 333 973,455.00 23,386 1,148 574,133.82 574.13 218,171 1,148
1000 1 333 973,455.00 2,923 144 143,533.45 143.53 54,543 144
41,625 5,927,932 5,928 2,252,614 41,625

Packing Variant Number of RespondentsTotal Available Projected Total Actual Actual Actual D(kg) Sales No. of Packs
(gram) willing to avail Market RespondentsAvailable Market Available Demand Demand Demand(g)
100 280 333 1,003,437.00 843,731 41,427 4,142,718.28 4,143 1,657,087 41,427
150 40 333 1,003,437.00 120,533 5,918 887,725.35 888 355,090 5,918
250 9 333 1,003,437.00 27,120 1,332 332,897.00 333 133,159 1,332
500 0 0 1,003,437.00 -
1000 0 0 1,003,437.00 -
991,384 48,677 5,363,341 5,363 2,145,336 48,677
100 225 333 1,003,437.00 677,998 33,290 3,328,970.05 3,328.97 1,398,167 33,290
150 67 333 1,003,437.00 201,893 9,913 1,486,939.95 1,486.94 624,515 9,913
250 19 333 1,003,437.00 57,253 2,811 1,405,565.13 1,405.57 590,337 5,622
500 9 333 1,003,437.00 27,120 1,332 1,331,588.02 1,331.59 559,267 2,663
1000 3 333 1,003,437.00 9,040 444 887,725.35 887.73 372,845 888
973,304 47,789 8,440,788 8,441 3,545,131 52,376
100 190 333 1,003,437.00 572,532 28,111 2,811,130.26 2,811.13 1,068,229 28,111
150 97 333 1,003,437.00 292,292 14,352 2,152,733.96 2,152.73 818,039 14,352
250 33 333 1,003,437.00 99,440 4,882 1,220,622.35 1,220.62 463,836 4,882
500 7 333 1,003,437.00 21,093 1,036 517,839.79 517.84 196,779 1,036
1000 5 333 1,003,437.00 15,067 740 739,771.12 739.77 281,113 740
1,000,424 49,121 7,442,097 7,442 2,827,997 49,121
100 206 333 1,003,437.00 620,745 30,479 3,047,857.02 3,047.86 1,066,750 30,479
150 79 333 1,003,437.00 238,053 11,688 1,753,257.56 1,753.26 613,640 11,688
250 34 333 1,003,437.00 102,453 5,030 1,257,610.91 1,257.61 440,164 5,030
500 12 333 1,003,437.00 36,160 1,775 887,725.35 887.73 310,704 1,775
1000 7 333 1,003,437.00 21,093 1,036 1,035,679.57 1,035.68 362,488 1,036
1,018,504 50,009 7,982,130 7,982 2,793,746 50,009
100 187 333 1,003,437.00 563,492 27,6672,766,743.99 2,766.74 1,051,363 27,667
150 59 333 1,003,437.00 177,786 8,7291,309,394.89 1,309.39 497,570 8,729
250 35 333 1,003,437.00 105,466 5,178 1,294,599.46 1,294.60 491,948 5,178
500 8 333 1,003,437.00 24,107 1,184 591,816.90 591.82 224,890 1,184
1000 1 333 1,003,437.00 3,013 148 147,954.22 147.95 56,223 148
873,864 42,907 6,110,509 6,111 2,321,994 42,907


100 280 333 1,034,343.00 869,718 42,703 4,270,314.58 4,270.31 1,708,126 42,703
150 40 333 1,034,343.00 124,245 6,100 915,067.41 915.07 366,027 6,100
250 9 333 1,034,343.00 27,955 1,373 343,150.28 343.15 137,260 1,373
500 0 0 1,034,343.00 -
1000 0 0 1,034,343.00 -
1,021,918 50,176 5,528,532 5,529 2,211,413 50,176
100 225 333 1,034,343.00 698,880 34,315 3,431,503 3,431.50 1,441,231 34,315
150 67 333 1,034,343.00 208,111 10,218 1,532,738 1,532.74 643,750 10,218
250 19 333 1,034,343.00 59,017 2,898 724,428 724.43 304,260 2,898
500 9 333 1,034,343.00 27,955 1,373 686,301 686.30 288,246 1,373
1000 3 333 1,034,343.00 9,318 458 457,534 457.53 192,164 458
1,003,282 49,261 6,832,503 6,833 2,869,651 49,261
100 190 333 1,034,343.00 590,166 28,977 2,897,713.47 2,897.71 1,101,131 28,977
150 97 333 1,034,343.00 301,295 14,794 2,219,038.47 2,219.04 843,235 14,794
250 33 333 1,034,343.00 102,502 5,033 1,258,217.69 1,258.22 478,123 5,033
500 7 333 1,034,343.00 21,743 1,068 533,789.32 533.79 202,840 1,068
1000 5 333 1,034,343.00 15,531 763 762,556.18 762.56 289,771 763
1,031,237 50,634 7,671,315 7,671 2,915,100 50,634
100 206 333 1,034,343.00 639,864 31,417 3,141,731.44 3,141.73 1,099,606 31,417
150 79 333 1,034,343.00 245,385 12,048 1,807,258.14 1,807.26 632,540 12,048
250 34 333 1,034,343.00 105,609 5,185 1,296,345.50 1,296.35 453,721 5,185
500 12 333 1,034,343.00 37,274 1,830 915,067.41 915.07 320,274 1,830
1000 7 333 1,034,343.00 21,743 1,068 1,067,578.65 1,067.58 373,653 1,068
1,049,874 51,549 8,227,981 8,228 2,879,793 51,549
100 187 333 1,034,343.00 580,847 28,520 2,851,960.10 2,851.96 1,083,745 28,520
150 59 333 1,034,343.00 183,262 8,998 1,349,724.43 1,349.72 512,895 8,998
250 35 333 1,034,343.00 108,715 5,338 1,334,473.31 1,334.47 507,100 5,338
500 8 333 1,034,343.00 24,849 1,220 610,044.94 610.04 231,817 1,220
1000 1 333 1,034,343.00 3,106 153 152,511.24 152.51 57,954 153
900,779 44,228 6,298,714 6,299 2,393,511 44,228

APPENDIX E: COST OF ANNUAL PURCHASE (Raw Materials)
Formula:
Raw Materials Unit Ave.Monthly AD Annual Annual Demand Price/Unit Cost of Purchase
Vacuum Fried Guava
Vacuum Fried Guava Chips kg 4,897 58,764 280.00 16,453,920.00
Stand-Up Pouch 100g pc 37,824 453,882 2.50 1,134,705.00
Stand-Up Pouch 150g pc 5,404 64,842 2.80 181,557.60
Stand-Up Pouch 500g pc - - 3.50 -
Vacuum Fried Pineapple Chips kg 6,052 72,624 300.00 21,787,200.00
Stand-Up Pouch 1000g pc 406 4,866 5.00 24,330.00
Raw Materials Unit Ave.Monthly AD Annual AD Price/Unit
Vacuum Fried Guava Chips kg 6,795 81,534 260.00 21,198,840.00
Vacuum Fried Indian Mango Chips kg 7,288 87,456 200.00 17,491,200.00
Vacuum Fried Guyabano Chips kg 5,579 66,948 220.00 14,728,560.00
Total Cost 98,647,224.60

Business Year 2
Raw Materials Unit Prev. MoD Pres. MoD Annual AD Price/Unit Cost of Purchase
Vacuum Fried Guava
Vacuum Fried Guava Chips kg 4,897 5,048 60,571 280.00 16,959,878.04
Stand-Up Pouch 100g pc 37,824 38,987 467,839 2.50 1,169,597.18
Stand-Up Pouch 150g pc 5,404 5,570 66,836 2.80 187,140.50
Vacuum Fried Pineapple -
Vacuum Fried Pineapple Chips kg 6,052 6,238 74,857 300.00 22,457,156.40
Stand-Up Pouch 1000g pc 406 418 5,016 5.00 25,078.15
Raw Materials Unit
Ave.Monthly Demand Annual Actual Demand
Price/Unit
Vacuum Fried Jackfruit -
Vacuum Fried Indian Mango -
Vacuum Fried Indian Mango Chips kg 7,288 7,512 90,145 200.00 18,029,054.40
Vacuum Fried Guyabano -
Vacuum Fried Guyabano Chips kg 5,579 5,751 69,007 220 15,181,463.22
Stand-Up Pouch 250g pc 4,728 4,873 58,481 3 175,441.90
101,680,626.76

Business Year 3
Raw Materials Unit Prev. MoD Pres. MoD Annual AD Price/Unit Cost of Purchase
Vacuum Fried Guava
Vacuum Fried Pineapple Chipskg 6,238 6,430 77,159 300.00 23,147,713.96
Raw Materials Unit Prev. MoD Pres. Annual
MoD Actual Demand
Price/Unit
Stand-Up Pouch 500g pc 975 1,005 12,055 3.50 42,190.78
Vacuum Fried Indian Mangokg
Chips 7,512 7,743 92,917 200.00 18,583,447.82
Stand-Up Pouch 1000g pc 975 1,005 12,055 5.00 60,272.54
Vacuum Fried Guyabano Chips
kg 5,751 5,927 71,129 220 15,648,293.21
104,807,306.03

Business Year 4
Raw Materials Unit Prev. Mod Pres. MoD Annual AD Price/Unit Cost of Purchase
Vacuum Fried Guava
Raw Materials Unit Prev. MoD Pres. MoD
Annual Actual Demand
Price/Unit
Vacuum Fried Indian Mango Chipskg 7,743 7,981 95,774 200.00 19,154,888.84
108,030,130.69

Business Year 5
Raw Materials Unit Prev. Mod Pres. MoD Annual AD Price/Unit Cost of Purchase
Vacuum Fried Guava
Raw Materials Unit Pres. MoD Pres. MoD
Annual Actual DemandPrice/Unit
Vacuum Fried Indian Mango Chips kg 7,981 8,227 98,720 200.00 19,743,901.68
111,352,057.21

APPENDIX F: SUPPLY COMPUTATION
Steps in Calculating Total Supply:
1. Information regarding the total volume supplied to Cebu by a direct competitor was
obtained. Nancy Uayan of Profood International Corporation gave the most reliable data.
The table below shows the amount for dried fruit products delivered or supplied for one
month:
Kilogram
Date Number of Total
Per
(Jan) Cartons Kilograms
Carton
2 156 10 1,560
3 291 10 2,910
4 403 10 4,030
5 0 10 0
6 56 10 560
7 79 10 790
8 275 10 2,750
9 142 10 1,420
10 120 10 1,200
11 383 10 3,830
12 0 10 0
13 154 10 1,540
14 138 10 1,380
15 235 10 2,350
16 98 10 980
17 194 10 1,940
18 472 10 4,720
19 0 10 0
20 102 10 1,020
21 220 10 2,200
22 147 10 1,470
23 37 10 370
24 152 10 1,520
25 185 10 1,850
26 0 10 0
27 152 10 1,520
28 68 10 680
29 194 10 1,940
30 113 10 1,130
31 101 10 1,010
Total 46,670

NOTES:
Delivery peaks are at months of Jan, Mar, Apr, May, Nov and Dec.
The total volume delivered during lean months is half of the peak months.
In one month, delivery to different locations in Cebu is done for 26 days
The monthly volume of delivery for both peak and lean season was obtained.
For one year, the total volume supplied by Profood would be:
Delivery per month
Month
(kilograms)
Jan 46,670.000
Feb 23,335.000
Mar 46,670.000
Apr 46,670.000
May 46,670.000
Jun 23,335.000
Jul 23,335.000
Aug 23,335.000
Sep 23,335.000
Oct 23,335.000
Nov 46,670.000
Dec 46,670.000
Total 420,030.000
2. The market share of direct competitors was obtained from the survey and the total
volume of supply of all direct competitors was calculated by ratio and proportion.

Volume of Supply
Direct Competitors Market Share (%)
(kilograms)
Philippine Brand 13.50 420,030.00
R&M 10.89 338,824.20
7D 13.50 420,030.00
Cebu 9.97 337,807.73
Cebu Best 10.89 338,824.2
Guadalupe 11.20 348,469.33
Jojo's 10.2 317,356.00
Others 9.82 305,532.93
Total 100 3,111,333.33
Historical and Projected Supply
Values were obtained by calculating a supply factor and multiplying this to the total
number of arrivals from the previous years. The following table shows the supply in kilograms:
Year Supply Forecast

2014 3,111,333
2015 3,229,564
2016 3,352,287
2017 3,479,674
2018 3,611,902
2019 3,749,154
2020 3,891,622
Demand-Supply Gap
Formula:
Year Actual Demand Available Demand Projected Supply Available Demand-Supply Gap Actual Demand-Supply Gap
2016 193,589 387,178 3,352,287 2,965,109 3,158,698
2017 199,552 399,104 3,479,674 3,080,570 3,280,122
2018 205,698 411,395 3,611,902 3,200,507 3,406,204
2019 212,033 424,066 3,749,154 3,325,088 3,537,121
2020 207,354 414,708 3,891,622 3,476,914 3,684,268
APPENDIX G: ANNUAL SALES
Formula:
Business Year 1
Raw Materials Unit Annual Annual Demand Cost Sales

Vacuum Fried Guava
Vacuum Fried Guava Chips kg 58,764 400 23,505,600.00
Vacuum Fried Pineapple Chips kg 72,624 420 30,502,080.00
Raw Materials Unit Annual AD
Vacuum Fried Indian Mango Chips kg 87,456 350 17,491,200.00
Vacuum Fried Guyabano Chips kg 66,948 380 25,440,240.00
Total Cost 125,476,020.00
Business Year 2
Raw Materials Unit Annual Actual Demand Cost Sales

Vacuum Fried Guava
Vacuum Fried Indian Mango Chipskg 90,145 350 18,029,054.40
129,334,407.62

Business Year 3
Raw Materials Unit Annual AD Cost Sales

Vacuum Fried Guava
Vacuum Fried Pineapple Chipskg 77,159 420 32,406,799.54
Vacuum Fried Indian Mangokg
Chips 92,917 350 18,583,447.82
Vacuum Fried Guyabano Chips
kg 71,129 380 27,028,870.10
133,311,440.65
Business Year 4

Vacuum Fried Guava
Vacuum Fried Indian Mango Chipskg 95,774 350 19,154,888.84
137,410,767.45
Business Year 5

Vacuum Fried Guava
Vacuum Fried Indian Mango Chips kg 98,720 350 19,743,901.68
141,636,148.55
APPENDIX H: PRICE RANGE COMPUTATIONS
Price ranges in the different phases of the product life cycle were
benchmarked from competitors. The base price for a 100-gram pack for
Vacuum Fried Guava would be Php. 40.00. Inflation rates were taken into
consideration for future prices. The inflation rate used for these
calculations was that of 0.0496 because this was the Philippine average
rate for the last 12 years. Future price calculations will be made by the use
of this equation:
Sample Computation for Guava 100 gram:
Introduction Stage
Growth Stage

Maturity Stage
Decline Stage

Introduction Stage
Vacuum Fried Guava

Gram Variant Base Price Inflation Rate Introduction Stage (year) Price Price Range
100 40 1.0496 3 46.25 40-47

150 55 1.0496 3 63.60 55-64
250 100 1.0496 3 115.63 100-115
500 200 1.0496 3 231.26 200-231
1000 400 1.0496 3 462.52 400-462.52
100 42 1.0496 3 48.56 42-49

150 63 1.0496 3 72.85 63-73
250 105 1.0496 3 121.41 105-122
500 210 1.0496 3 242.82 210-242.82
1000 420 1.0496 3 485.65 420-486
100 38 1.0496 3 43.94 38-44

150 57 1.0496 3 65.91 57-66
250 95 1.0496 3 109.85 95-110
500 190 1.0496 3 219.70 190-220
1000 380 1.0496 3 439.39 380-440
100 35 1.0496 3 40.47 35-41

150 52.5 1.0496 3 60.71 53-61
250 87.5 1.0496 3 101.18 88-101
500 175 1.0496 3 202.35 175-202
1000 350 1.0496 3 404.71 350-405
100 38 1.0496 3 43.94 38-44

150 57 1.0496 3 65.91 57-65
250 95 1.0496 3 109.85 95-110
500 190 1.0496 3 219.70 190-220
1000 380 1.0496 3 439.39 380-440

Growth Stage
Vacuum Fried Guava
Gram Variant Base Price Inflation Rate Growth Stage Year Price (Php) Price Range
100 40 1.0496 6 53.48 40-47

150 55 1.0496 6 73.54 55-64
250 100 1.0496 6 133.70 100-115
500 200 1.0496 6 267.41 200-231
1000 400 1.0496 6 534.81 400-462.52
6
100 42 1.0496 6 56.16 42-49
150 63 1.0496 6 84.23 63-73
250 105 1.0496 6 140.39 105-122
500 210 1.0496 6 280.78 210-242.82
1000 420 1.0496 561.55 420-486
100 38 1.0496 6 50.81 38-44

150 57 1.0496 6 76.21 57-66
250 95 1.0496 6 127.02 95-110
500 190 1.0496 6 254.04 190-220
1000 380 1.0496 6 508.07 380-440
100 35 1.0496 6 46.80 35-41

150 52.5 1.0496 6 70.19 53-61
250 87.5 1.0496 6 116.99 88-101
500 175 1.0496 6 233.98 175-202
1000 350 1.0496 6 467.96 350-405
100 38 1.0496 6 50.81 38-44

150 57 1.0496 6 76.21 57-65
250 95 1.0496 6 127.02 95-110
500 190 1.0496 6 254.04 190-220
1000 380 1.0496 6 508.07 380-440

Maturity Stage
Vacuum Fried Guava
Gram Variant Base Price
Inflation Rate Maturity Stage (year) Price (Php) Price Range
100 40 1.0496 10 64.91 40-47

150 55 1.0496 10 89.25 55-64
250 100 1.0496 10 162.27 100-115
500 200 1.0496 10 324.54 200-231
1000 400 1.0496 10 649.08 400-462.52
100 42 1.0496 10 42.00 42-49

150 63 1.0496 10 102.23 63-73
250 105 1.0496 10 170.38 105-122
500 210 1.0496 10 340.77 210-242.82
1000 420 1.0496 10 681.53 420-486
100 38 1.0496 10 61.66 38-44

150 57 1.0496 10 92.49 57-66
250 95 1.0496 10 154.16 95-110
500 190 1.0496 10 308.31 190-220
1000 380 1.0496 10 616.63 380-440
100 35 1.0496 10 56.79 35-41

150 52.5 1.0496 10 85.19 53-61
250 87.5 1.0496 10 141.99 88-101
500 175 1.0496 10 283.97 175-202
1000 350 1.0496 10 567.94 350-405
100 38 1.0496 10 61.66 38-44

150 57 1.0496 10 92.49 57-65
250 95 1.0496 10 154.16 95-110
500 190 1.0496 10 308.31 190-220
1000 380 1.0496 10 616.63 380-440

Decline Stage
Vacuum Fried Guava
Gram Variant Base Price Inflation Rate Decline Stage (year) Price (Php) Price Range
100 40 1.0496 11 68.13 40-47

150 55 1.0496 11 93.68 55-64
250 100 1.0496 11 170.32 100-115
500 200 1.0496 11 340.64 200-231
1000 400 1.0496 11 681.27 400-462.52
100 42 1.0496 11 42.00 42-49

150 63 1.0496 11 107.30 63-73
250 105 1.0496 11 178.83 105-122
500 210 1.0496 11 357.67 210-242.82
1000 420 1.0496 11 715.34 420-486
100 38 1.0496 11 64.72 38-44

150 57 1.0496 11 97.08 57-66
250 95 1.0496 11 161.80 95-110
500 190 1.0496 11 323.61 190-220
1000 380 1.0496 11 647.21 380-440
100 35 1.0496 11 59.61 35-41

150 52.5 1.0496 11 89.42 53-61
250 87.5 1.0496 11 149.03 88-101
500 175 1.0496 11 298.06 175-202
1000 350 1.0496 11 596.12 350-405
100 38 1.0496 11 64.72 38-44

150 57 1.0496 11 97.08 57-65
250 95 1.0496 11 161.80 95-110
500 190 1.0496 11 323.61 190-220
1000 380 1.0496 11 647.21 380-440

APPENDIX I: PEST CONTROL MAP OUT PLAN
2 .25 m 4.455 m
RACKS AREA
2. 025 m
COUNTER
REPACKING AREA
5m
4m
1m
STORAGE AREA
6m
5.03 m
4m
2.1 m
LOUNGE OFFICE
COMFORT
ROOM
5m 1.5 m 4.38 m
3m
Legend:
-Pest Catch Sheet
-Rat Cage
IE 512-Project Feasibility Page ccclxxxii

APPENDIX J: Food Standards
Minimum Requirement for Analysis of Finished Product
Processed Food Analysis Required
Standards
Source: Annex J, Summary of Current Food Standards, Food and Drug Administration
APPENDIX K: Depreciation Computation
where d = depreciation per year; FC = first cost; SV = salvage value; n = useful life
For computer table :

APPENDIX L: FRINGE AND OTHER BENEFITS
SSS CONTRIBUTION TABLE 2014
SE / VM /
Employer – Employee
OFW
Monthly
Range of Compensation SOCIAL SECURITY EC Total Contribution
Salary Credit Total
ER EE TOTAL ER ER EE Total Contribution
1,000.00 - 1,249.99 1,000.00 73.70 36.30 110.00 10.00 83.70 36.30 120.00 110.00
1,250.00 - 1,749.99 1,500.00 110.50 54.50 165.00 10.00 120.50 54.50 175.00 165.00
1,750.00 - 2,249.99 2,000.00 147.30 72.70 220.00 10.00 157.30 72.70 230.00 220.00
2,250.00 - 2,749.99 2,500.00 184.20 90.80 275.00 10.00 194.20 90.80 285.00 275.00
2,750.00 - 3,249.99 3,000.00 221.00 109.00 330.00 10.00 231.00 109.00 340.00 330.00
3,250.00 - 3,749.99 3,500.00 257.80 127.20 385.00 10.00 267.80 127.20 395.00 385.00
3,750.00 - 4,249.99 4,000.00 294.70 145.30 440.00 10.00 304.70 145.30 450.00 440.00
4,250.00 - 4,749.99 4,500.00 331.50 163.50 495.00 10.00 341.50 163.50 505.00 495.00
4,750.00 - 5,249.99 5,000.00 368.30 181.70 550.00 10.00 378.30 181.70 560.00 550.00
5,250.00 - 5,749.99 5,500.00 405.20 199.80 605.00 10.00 415.20 199.80 615.00 605.00
5,750.00 - 6,249.99 6,000.00 442.00 218.00 660.00 10.00 452.00 218.00 670.00 660.00
6,250.00 - 6,749.99 6,500.00 478.80 236.20 715.00 10.00 488.80 236.20 725.00 715.00
6,750.00 - 7,249.99 7,000.00 515.70 254.30 770.00 10.00 525.70 254.30 780.00 770.00
7,250.00 - 7,749.99 7,500.00 552.50 272.50 825.00 10.00 562.50 272.50 835.00 825.00
7,750.00 - 8,249.99 8,000.00 589.30 290.70 880.00 10.00 599.30 290.70 890.00 880.00
8,250.00 - 8,749.99 8,500.00 626.20 308.80 935.00 10.00 636.20 308.80 945.00 935.00
8,750.00 - 9,249.99 9,000.00 663.00 327.00 990.00 10.00 673.00 327.00 1,000.00 990.00
9,250.00 - 9,749.99 9,500.00 699.80 345.20 1,045.00 10.00 709.80 345.20 1,055.00 1,045.00
9,750.00 - 10,249.99 10,000.00 736.70 363.30 1,100.00 10.00 746.70 363.30 1,110.00 1,100.00
10,250.00 - 10,749.99 10,500.00 773.50 381.50 1,155.00 10.00 783.50 381.50 1,165.00 1,155.00
10,750.00 - 11,249.99 11,000.00 810.30 399.70 1,210.00 10.00 820.30 399.70 1,220.00 1,210.00
11,250.00 - 11,749.99 11,500.00 847.20 417.80 1,265.00 10.00 857.20 417.80 1,275.00 1,265.00
11,750.00 - 12,249.99 12,000.00 884.00 436.00 1,320.00 10.00 894.00 436.00 1,330.00 1,320.00
12,250.00 - 12,749.99 12,500.00 920.80 454.20 1,375.00 10.00 930.80 454.20 1,385.00 1,375.00
12,750.00 - 13,249.99 13,000.00 957.70 472.30 1,430.00 10.00 967.70 472.30 1,440.00 1,430.00
13,250.00 - 13,749.99 13,500.00 994.50 490.50 1,485.00 10.00 1,004.50 490.50 1,495.00 1,485.00
13,750.00 - 14,249.99 14,000.00 1,031.30 508.70 1,540.00 10.00 1,041.30 508.70 1,550.00 1,540.00
- 14,749.99 10.00
14,250.00 14,500.00 1,068.20 526.80 1,595.00 1,078.20 526.80 1,605.00 1,595.00
15,249.99 30.00
14,750.00 15,000.00 1,105.00 545.00 1,650.00 1,135.00 545.00 1,680.00 1,650.00
15,749.99 30.00
15,250.00 15,500.00 1,141.80 563.20 1,705.00 1,171.80 563.20 1,735.00 1,705.00
- over 30.00
15,750.00 16,000.00 1,178.70 581.30 1,760.00 1,208.70 581.30 1,790.00 1,760.00

PHILHEALTH CONTRIBUTION
Salary Salary Total Monthly Employee Employer

Salary Range
Bracket Base Premium Share* Share
*Employee share represents half of the total monthly premium
while the other half is shouldered by the employer.
**For Kasambahay helper receiving a wage of less than Five Thousand Pesos
(P5,000.00) per month,
the employer will shoulder both the employee and employer share based on the
premium schedule.
8,999.99**
1 8,000.00 200 100 100
and below
9,000.00 -
2 9,000.00 225 112.5 112.5
9,999.99
10,000.00 -
3 10,000.00 250 125 125
10,999.99
11,000.00 -
4 11,000.00 275 137.5 137.5
11,999.99
12,000.00 -
5 12,000.00 300 150 150
12,999.99
13,000.00 -
6 13,000.00 325 162.5 162.5
13,999.99
14,000.00 -
7 14,000.00 350 175 175
14,999.99
15,000.00 -
8 15,000.00 375 187.5 187.5
15,999.99
16,000.00 -
9 16,000.00 400 200 200
16,999.99
17,000.00 -
10 17,000.00 425 212.5 212.5
17,999.99
18,000.00 -
11 18,000.00 450 225 225
18,999.99
19,000.00 -
12 19,000.00 475 237.5 237.5
19,999.99
20,000.00 -
13 20,000.00 500 250 250
20,999.99
21,000.00 -
14 21,000.00 525 262.5 262.5
21,999.99

22,000.00 -
15 22,000.00 550 275 275
22,999.99
23,000.00 -
16 23,000.00 575 287.5 287.5
23,999.99
24,000.00 -
17 24,000.00 600 300 300
24,999.99
25,000.00 -
18 25,000.00 625 312.5 312.5
25,999.99
26,000.00 -
19 26,000.00 650 325 325
26,999.99
27,000.00 -
20 27,000.00 675 337.5 337.5
27,999.99
28,000.00 -
21 28,000.00 700 350 350
28,999.99
29,000.00 -
22 29,000.00 725 362.5 362.5
29,999.99
30,000.00 -
23 30,000.00 750 375 375
30,999.99
31,000.00 -
24 31,000.00 775 387.5 387.5
31,999.99
32,000.00 -
25 32,000.00 800 400 400
32,999.99
33,000.00 -
26 33,000.00 825 412.5 412.5
33,999.99
34,000.00 -
27 34,000.00 850 425 425
34,999.99
35,000.00 and
28 35,000.00 875 437.5 437.5
up
PAGIBIG CONTRIBUTIONS

APPENDIX M: PARTNERSHIP AGREEMENT (Supplier and Investor)
Partnership Agreement
THIS AGREEMENT is made and entered into at
______________________________, this ________ day of ________________,
20_______, by and between
____________________________________________________ (Name And
Address) and _________________________________________________
(Name And Address) (hereafter collectively referred to as the "Partners").
W I T N E S S E T H:
WHEREAS, the Partners intend to
________________________________________________________________
____________________________________________.
NOW THEREFORE, in consideration of the promises and mutual covenants
made one to the other, be it and it is hereby agreed as follows:
1. Partnership Name and Purpose. The parties hereto hereby form a Partnership
under the name and style of
_______________________________________________ (hereafter referred to
as "the Partnership") to own real property, develop real property, and thereafter
to manage, operate, develop, mortgage, lease or sell real property and do all
other lawful things as further business of the partnership and as may be

necessary, incidental, or convenient to carry on the Partnership business as
provided herein.
2. Place of Business. The principal place of business of the Partnership shall be
___________________________________________________ (Location and
Address) or such other place in the State of ________________ as the
Partnership may hereafter, from time to time, determine.
3. Term. The Partnership shall commence as of the date of the execution of this
Agreement and shall continue thereafter for a term of __________ years, unless
sooner dissolved and terminated by agreement of the Partners; provided,
however, that the Partnership shall not be terminated by the bankruptcy,
insolvency, appointment of trustee for the benefit of creditors, death,
incompetence, or withdrawal of any Partner, but the remaining Partners shall
have the rights and options as set forth below.
4. Capital Contributions. Each Partner shall contribute to the Partnership, an
initial contribution of capital and each Partner shall share in the net annual
operating profits or losses of the Partnership in the following ratio unless adjusted
as hereinafter provided:
________________________________ ______________________
Partners Name Contribution
________________ ______________________
Partners Name Contribution
The capital of the Partnership shall be the aggregate amount of capital
contributions made to it by the Partners. The initial capital to be contributed by

each Partner shall be in cash. No Partner shall be required to make any
additional contribution to the Partnership but shall make such additional
contributions as agreed upon by a supermajority of the partners, and directed by
a written call given to each partner. For all purposes in this Agreement, a
supermajority vote of the partners shall be a vote of at least five partners.
If any Partner fails to contribute the additional capital required of him within thirty
(30) days after written call for contribution, the other Partners shall be given the
opportunity to contribute amounts that will equal the assessment in default. They
shall contribute amounts equaling the assessment in default in a proportion
commensurate with the proportion of the capital interest in the Partnership of the
non-defaulting Partner(s) prior to the call for additional contributions or in any
other proportions that they may determine. The allocation of profits or losses
among all the Partners shall be adjusted according to the change in capital
contributions by the partners.
Contributions to the capital of the Partnership shall not bear interest. However,
any advance of money to the Partnership by any Partner in excess of the
amounts provided for in this Agreement or subsequently agreed to as a Capital
Contribution shall not be deemed a Capital Contribution to the Partnership, but a
debt due from the Partnership, and shall be repaid with interest at such rates and
times as determined by a supermajority of the Partners. Such debts may have
preference or priority over any other payments to Partners as may be determined
by a supermajority of the Partners.

5. Capital Accounts. A separate capital account shall be maintained for each
Partner, and capital contributions to the Partnership by the Partners shall be
charged to such accounts. Partnership profits or losses shall also be charged or
credited to the separate capital accounts in the manner hereinbefore provided.
No interest shall be paid on the capital account of any Partner.
6. Cash Distributions. Any amounts held by the Partnership and not required for
purposes of its business, including reasonable reserves for contingencies, may
be distributed to the Partners pursuant to the terms hereof. No Partner shall be
entitled to make withdrawals from his individual account or have returned to him
his capital contributions except in accordance herewith. No Partner shall have
the right to require that a distribution be made to him other than in cash.
7. Banks and Books of Account. The funds of the Partnership shall be kept in a
separate account or accounts in a bank and/or savings institution in the name of
the Partnership. All withdrawals from such accounts shall be made upon checks
or drafts signed by any Partner.
Full and complete books of account shall be kept and maintained at the principal
place of business and all transactions shall be entered in such books. Each
Partner shall have access and the right to inspect and copy such books and all
other Partnership records. The books shall be closed at the end of each calendar
year and statements prepared showing the financial condition of the Partnership
and its profit or loss.
8. Managing Partners. In the general conduct of the Partnership business, all the
Partners shall be consulted and the advice and opinions of the Partners shall be

obtained so much as is practicable. However, for the purpose of fixing and
harmonizing the policies and practices of the Partnership and of securing
uniformity and continuity in the conduct of its business, the general management
of the Partnership business shall rest solely in the Managing Partners. The
Managing Partners shall be:
_____________________________________________________
(Name and Address).
(Name and Address).
(Name and Address).
Except in cases of gross negligence or willful misconduct, the doing of any act or
the failure to do any act by the Managing Partners, the effect of which may cause
or result in loss or damage to the Partnership, shall not subject the Managing
Partners to any liability to the remaining Partners or to the Partnership. In the
event of the death, physical or mental incapacity, or withdrawal of either
Managing Partner from the Partnership, the surviving Partners shall have equal
rights in the management of the Partnership and shall appoint successor
Managing Partners.
Except as otherwise provided herein, no Partner shall make any contract for and
on behalf of the Partnership without the prior approval of the other Partners. All
contracts shall be made in the name of the Partnership and in the case of any
disagreement as to the making of any contract or assumption of any obligation by

the Partnership, such contract or obligation shall not be made or executed except
as directed by a supermajority of the Partners; further, no Partner shall release
nor cancel any indebtedness or obligation due the Partnership, except on full
payment thereof, or upon the mutual agreement of all the Partners, nor shall any
Partner give, extend, or guarantee credit to or for any person, firm, corporation
without the consent of all the Partners, nor at any time shall any Partner sign the
firm name nor pledge the firm's credit nor in any other manner act as surety or
guarantor in any paper, bill, bond, note, or draft or other obligation whatsoever,
nor assign pledge, mortgage, sell or otherwise dispose of, any Partnership
property or any interest therein or do anything or permit any act whereby the
Partnership's money, interest, or property or its interest therein, may be liable to
seizure, attachment, or execution, except upon mutual consent of all the
Partners.
9. Relationship of the Partners. Each Partner may have other business interests
and may engage in any other business, trade, profession, or employment
whatsoever on his own account or in partnership with, as an employee of, or as
an officer, director, or stockholder of any other person, firm, or corporation
(whether competitive with the Partnership or otherwise) and he shall not be
required to devote his entire time to the business of the Partnership. Each
Partner shall devote such time and attention to the conduct of the business of the
Partnership as shall be deemed by all of the Partners to be required for the
business of the Partnership.

No Partner shall receive any salary or other special compensation or services
rendered by him as Partner of the Partnership, except as otherwise agreed by all
the Partners. Notwithstanding the foregoing, each Partner shall be permitted to
do business with the Partnership and with any other Partner individually or with
any business entity in which such Partner may have an interest.
It is understood that each of the parties hereto are Partners for the purpose of
this Partnership as set forth in Paragraph 1 hereof, but nothing contained in this
Agreement shall make the Partners with respect to matters unrelated to the
Partnership, or render them liable for any debts or obligations of any Partner, nor
shall any Partner be hereby constituted the agent for any Partner except to the
limited extent herein specifically permitted and as may be hereinafter agreed
upon by consent of all the parties.
10. Waiver of Right to Partition. Each Partner hereto hereby waives his right to
partition (or to separately assert any right to partition under the statutes of the
State of ________________ pertaining to partition) any real property owned by
the Partnership.
11. Voluntary Termination. The Partnership may be dissolved at any time by
agreement of a supermajority of the Partners, in which event the partners shall
proceed with reasonable promptness to liquidate the business of the partnership.
The assets of the partnership and proceeds of liquidation shall be applied in the
following order:
(a) To the payment of or provision for all debts, liabilities and obligations of the
Partnership to any person (other than Partners) and the expenses of liquidation;

(b) To the payment of all debts and liabilities (including interest) to the Partners
(except those on account of their capital contributions);
(c) To the discharge of the balance of the income accounts of the Partners;
(d) To the payment of the capital accounts of the Partners, less any previous
distributions and any losses charged or chargeable to the capital accounts of the
Partners and increased by any income or gains credited to such capital accounts;
and
(e) Between the Partners in the same proportion as their percentages of interest
in the Partnership as set forth in Paragraph 4.
Notwithstanding any other provisions of this Paragraph 11, if, upon ultimate
liquidation of the Partnership, the foregoing allocations would leave any Partner
with a deficit in his capital account that is not to be repaid to the Partnership,
then, such allocation shall be modified so that, to the extent possible, the amount
of total gain (including the portion of any cancellation of indebtedness income not
excluded by an election under Internal Revenue Code Sections 108 and 1017)
allocated to such Partner is sufficient to eliminate such deficit. If there are several
Partners with such deficits and the total gain is less than the aggregate deficits,
such gains shall be allocated in proportion to, but not in excess of, their
respective deficits.
12. Retirement. No Partner may retire from the Partnership for a period of ____
years from the date of this Agreement. After said period, any Partner shall have
the right to retire from the Partnership at the end of any calendar month. Written
notice of intention to retire shall be served upon the remaining Partners at least

__________ days before the first day of the month in which the retiring Partner
intends to retire. The retirement of such Partner shall have no effect upon the
continuance of the Partnership business. If the remaining Partners elect to
purchase the interest of the retiring Partner, the Partners shall serve written
notice of such election upon the retiring Partner within_______ days after receipt
of the retiring Partner's notice of intention to retire, and the purchase price and
method of payment for the Partnership interest shall be as provided in Paragraph
14 hereof. If the remaining Partners elect not to purchase the interest of the
retiring Partner, then the Partners shall proceed with reasonable promptness to
liquidate the business of the Partnership.
13. Involuntary Withdrawal. Any Partner may be required to withdraw from the
Partnership upon the happening of any of the following events:
(a) If any Partner makes an assignment for the benefit of creditors or applies for
the appointment of a trustee, a liquidator or receiver of any substantial part of his
assets or commences any proceeding relating to himself under any bankruptcy,
reorganization, or arrangement of similar law; or if any such application is filed or
proceeding is commenced against any Partner and such Partner indicates his
consent thereto, or an order is entered appointing any such trustee, liquidator or
receiver, or approving a petition in any such proceeding and such order remains
in effect for more than sixty (60) days; then that Partner shall be deemed to have
withdrawn from the Partnership as of the date of the happening of any such
event.

(b) If any Partner shall be adjudged incompetent, then such Partner shall be
deemed to have withdrawn from the Partnership on the date set forth in a notice
to such incompetent Partner from the remaining Partners.
The value of the Partnership interest in the Partnership of any Partner who shall
be required to withdraw from the Partnership as provided in this paragraph, and
the method of payment for the Partnership interest shall be as provided in
Paragraph 14 hereof.
14. Death of a Partner. Upon the death of a Partner, the Partnership shall not
terminate, and the business of the Partnership shall be continued to the end of
the fiscal year in which such death occurs. The estate of the deceased Partner
shall share in the net profits or losses of the Partnership for the balance of the
fiscal year in the same manner the deceased Partner would have shared in them
had he survived to the end of the fiscal year, but the liability of the estate for
losses shall not exceed the deceased Partner's interest in the Partnership assets
at the time of his death. The estate of the deceased Partner shall have no voice
in the affairs of the Partnership. At the end of the fiscal year, the surviving
Partners shall have the option either to liquidate the Partnership or to purchase
the interest of the deceased Partner.
(a) If the surviving Partners elect to purchase the interest of the deceased
Partner, they shall serve notice in writing of such election within _______ months
after the death of the Partner upon the Executor or Administrator of such
deceased Partner's estate, or if at the time of such election no such legal
representative has been appointed, upon any one of the known legal heirs of the

decedent at the last known address of such heir. The purchase price shall be
equal to the deceased Partner's capital account as of the end of the month next
preceding the date of his death plus the deceased Partner's income account as
of said date, adjusted for the deceased Partner's share of profits not previously
distributed or losses not previously charged to either of said accounts through the
end of the month next preceding death. No allowance shall be made for goodwill,
trade name, patents or other intangible assets, except as those assets have
been reflected on the Partnership books immediately prior to termination; but the
surviving Partners shall nevertheless be entitled to use the trade name of the
Partnership. The capital account of the deceased Partner shall be adjusted to
reflect the fair market value of all Partnership land and improvements located
thereon and fixtures affixed thereto, the same to be determined by an
independent appraiser selected by the parties for this purpose, whose
determination shall be final and binding upon all interested parties. The purchase
price shall be paid within ________ year(s) of the death of the deceased partner
and shall bear interest at the rate of ________ percent per annum thereafter. In
the event no agreement can be made on who shall be the appraiser, then the
value shall be established by three appraisers, one selected by the deceased
partner's estate, one selected by the remaining partners and a third appraiser
selected by those two appraisers. The Partners intend that the payments for the
deceased Partner's capital account shall be distributions under Section 736(b) of
the Internal Revenue Code, and that payments for undistributed profits shall be a

distributive share of the Partnership income or a guaranteed payment under
Section 736(a) of the Internal Revenue Code.
(b) If the surviving Partners do not elect to purchase the interest of the deceased
Partner, they shall proceed with reasonable promptness to liquidate the
Partnership. During the period of liquidation, the surviving Partners and the
estate of the deceased Partner shall share in the profits and losses of the
business in the same manner that they would have shared in them had the
deceased Partner survived to the end of the fiscal year, except that the deceased
Partner's estate shall not be liable for losses in excess of the deceased Partner's
interest in the Partnership assets as of the time of his death. Except as herein
otherwise stated, the procedure as to liquidation and distribution of the assets of
the Partnership business shall be the same as stated in Paragraph 11.
The parties agree that the provisions contained herein with respect to the
discharge of a deceased Partner's interest in the Partnership are in lieu of the
provisions of ____________________________________ (State
Statute)(Uniform Partnership Act))
and shall exclusively govern the disposition of and accounting for the interest of a
deceased Partner in the Partnership.
15. New Partners. No person shall be admitted as a Partner of the Partnership
except with the consent of all the Partners who shall determine the terms and
conditions upon which such admission is to be effective.
16. Prohibition on Transfer. A Partner shall not, and shall have no right, to sell,
assign, pledge or mortgage his interest in the Partnership, or the Partnership

property or assets, except with the written consent of all the Partners, and any
such prohibition transfer, if attempted, shall be void and without force or effect.
17. Entire Agreement. This Agreement contains the entire understanding of the
parties hereto and may not be modified or amended except by a writing signed
by the parties to be charged therewith.
18. Controlling Law. This Agreement shall be controlled by and construed in
accordance with the laws of the State of ______________________.
19. Successors and Assigns. Subject to the restrictions set forth herein, this
Agreement shall inure to the benefit of and be binding upon the heirs, personal
representatives, successors and assigns of the parties.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the
date and place first above mentioned.
_______________________________ _________________
Signature of Partner Date
_______________________________ _________________
_______________________________ _________________

BIBLIOGRAPHY
Retrivedfromhttp://www.bplans.com/industry_reports/report/dried_and_dehydrated_fruits_vegeta
bles_and_soup_mixes/2034
Retrived from http://www.investopedia.com/terms/c/cogs.asp
Retrived fromhttp://www.investopedia.com/terms/m/marketshare.asp
Retrived fromhttp://www.tradingeconomics.com/philippines/inflation-cpi
Retrived fromhttps://www.easycalculation.com/physics/electromagnetism/computer-power-
supply.php

CURRICULUM VITAE
JOE S. APERDO
Linut-od, Argao Cebu
Cebu, Philippines
Cell No.09063103563
E-mail address: joeaperdo111@gmail.com
PERSONAL BACKGROUND
Date of Birth : May 27, 1994
Age : 21
Weight : 63 kgs.
Civil Status : Single
Religion : Roman Catholic
Dialect Spoken : Cebuano, Tagalog, English
Citizenship : Filipino
EDUCATIONAL BACKGROUND
2011- present Bachelor of Science in Industrial Engineering
Cebu Technological University
M. J Cuenco Avenue R. Palma St., Cebu City
2005-2009 Secondary Education
Calagasan National High School
Calagasan Argao, Cebu
2003-2005 Elementary Education
2003-2006 CalagasanElementary School
Calagasan Argao, Cebu

KHYLENE MARIE P. RUBICA
San Antonıo Rd. GuınsayDanao Cıty
Contact Number: 09430539327
E-mail address:khylenerubıca@yahoo.com
PERSONAL BACKGROUND
Age : 21 years old
Birthdate : October 10, 1994
Birthplace : Metro Cebu Communıty Hospıtal
Citizenship : Filipino
Civil Status : Single
Religion : Roman Catholıc
College
Course : Bachelor of Science in Industrial Engineering
School : Cebu Technological University – Main Campus
Address : M.J. Cuenco Ave. R. Palma St., Cebu City
School Year : June 2012 – Present
High School
School :Carmen Cstıan School
Address :DawısNorte Carmen Cebu
School Year : 2007 – 2011
Elementary
School :Guınsay Elementary School
Address :GuınsayDanao Cıty
School Year :2001 – 2007

CURRICULUM VITAE
PERSONAL BACKGROUND
Name: Gerlyn Baring Serato

Address: Mc Arthur Tudela Camotes Island ,Cebu
Birthdate: March 4,1994
Age: 21 yrs. old
Sex: Female
Citizenship: Filipino
Religion: Roman Catholic
Father: Zenil B. Serato
Mother: Shiela B. Serato
COLLEGE Cebu Technological University
Bachelor of Science in Industrial Engineering
M.J. Cuenco Ave., R. Palma St., Cebu City
2011-present
HIGH SCHOOL Immaculate Conception Institute of Tudela ,Inc.

Southern Poblacion,Tudela, Camotes, Cebu
Date Graduated: March 2011
ELEMENTARY Mc Arthur Elementary School

Mc Arthur Tudela Camotes,Cebu
Date Graduated: March 200
AFFILIATION
Position Organization Year
Member Industrial Engineering Council 2011
OJT HHG Cebu Inc.


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COLLEGE OF ENGINEERING

A FEASIBILITY STUDY OF VACUUM FRIED

Presented to the Faculty of the Industrial Engineering Department

Cebu Technological University, Cebu City, Philippines

Of the Requirements for the Degree

BACHELOR OF SCIENCE IN INDUSTRIAL ENGINEERING

Khylene Marie P. Rubica

piece of time born.

Tabay,thank you so much!

financially, motivations, love and care.

need.For working invisibly and enlightenment.

IE 512-Project Feasibility Page i

We humbly dedicate these upshots of bloods and sweats to:

This thesis is all for you!

For the brighter future and economy!!!

IE 512-Project Feasibility Page ii

Table of Contents............................................................................................... .iii

List of Tables .......................................................................................................vi

List of Figures .....................................................................................................xiii

Chapter I. THE PROBLEM AND ITS SCOPE

1.1 Introduction ........................................................................................ .1

1.2 The Problem ........................................................................................6

1.3 Research Methodology ........................................................................7

1.4 Definition of Terms .............................................................................10

Chapter II. MARKETING ASPECT

2.1 Product Concept ................................................................................11

2.2 Target Market .....................................................................................21

2.3 Market Study Results .........................................................................29

2.4 Marketing Mix Decisions ....................................................................56

2.5 Life Cycle Strategies ..........................................................................84

Chapter III. COMPANY PROFILE AND ITS MICROENVIRONMENT

3.1 Company Logo and Location .............................................................88

3.2 Vision, Mission, Goals, Objectives and Values ..................................89

3.3 Critical Success Factors and Strategic Approach ..............................91

3.4 Business Models ................................................................................92

3.5 Microenvironment of the Company ....................................................98

IE 512-Project Feasibility Page iii

Chapter IV.TECHNICAL ASPECT

4.1 Business Location ............................................................................103

4.2 Structural Limitations ........................................................................103

4.3 Material Requirements Planning.......................................................131

4.4 Production Capacity……………………………………………………..134

4.5 Production Process ..........................................................................135

4.6 Work Cycle .......................................................................................139

4.7 Daily Production Schedule ...............................................................142

4.8 Design of Work Systems ................................................................. 145

4.9 Management of Quality ....................................................................150

4.10 Maintenance of Facilities and Equipment ......................................157

4.11 Inventory Management ..................................................................165

4.12 Supply Chain Design ......................................................................181

4.13 Waste Management Practices .......................................................190

4.14 Plant Layout ...................................................................................191

Chapter V. MANAGEMENT ASPECT

5.1 Management during Pre-Implementation Stage ..............................210

5.2 Management during Normal Operation ............................................213

Chapter VI .LEGAL AND TAXATION ASPECT

6.1 Legal Aspect ....................................................................................263

6.2 Taxation Aspect…………………………………………………………296

IE 512-Project Feasibility Page iv

Chapter VII. FINANCING AND FINANCIAL ASPECT

7.1 Financing Aspect ..............................................................................297

7.2 Financial Aspect ...............................................................................317

CHAPTER VIII. SOCIO-ECONOMIC DESIRABILITY ASPECT