A Technical Plan Draft

for

SDMT Hydra Company

AQUA CHILLED

Submitted by:

SANDER DEMDAM
2021104058

CHRISTIAN BLUE D. MONTOYA

2021104106

JOHN ARBIE T. SALUNAT

2021102864

KYLE ADRIANE A. TIMON

2019138195

NATHANEAL TRINIDAD
2021104730

in partial fulfillment of the requirements

for

IE103-1 / B72
TECHNOPRENEURSHIP
101
2nd Quarter, SY 2023 – 2024
1. PRODUCT SPECIFICATIONS

This product can carry up to 28

ounces of water with a base diameter of
4 inches and a height of 12 inches. It's
made of insulated stainless steel with a
double-wall vacuum insulation
technology. This product is perfect for
people who have an active lifestyle but
can also be used by individuals who
want to keep fresh and cool in summer.

In Figure 1, the front side of the

Figure 1: Front and Back View of the Product.
product has the company logo and the
sprayer head of the mist sprayer. It is
activated by a handle seen on the
product's back side on the cap. The cap
can be twisted to allow the customer to
drink and replenish their stamina. Other
than that, this product also has a fan
symbol on the bottom side of the back
view of the product which signifies the
built in mini fan of the product.

Table 1: Direct Material Cost.

Materials Quantity Price Supplier

Stainless Steel Body 1 pc Php 450.00 Essentra Components
Motor for the minifan 1 pc Php 225.00 Shenzhen Runxun
Technology
Battery 1 pc Php 170.00 Shenzhen Runxun
Technology
Mist sprayer mechanism cap 1 pc Php 140.00 Allied Container
Cork Insulation 1 pc Php 280.00 Amorim Cork Group

Table 1 above represents the Aqua Chilled Water flask raw materials to be used
in the soft launch of this product. Here we have the main frame of the water flask, which
is the stainless-steel flask, the motor for the retractable minifan, and the mist sprayer cap.
This is followed by a few additions to the products creation which is the battery and the
cork insulation. Note that the price can vary depending on the market but, since the
suppliers are global companies, their pricing was based on the current market of the U.S
dollar which in termed was converted to Philippine peso for practicality.
2. PROCESS STANDARDS

Figure 2: Flow Process Chart of Aqua Chilled.

The thorough procedure for creating the Aqua Chilled bottle is shown in the Flow
Chart above. Both the inner and outer flask production methods are similar. The metals
must first be cut to the appropriate length and stretched to the right dimensions. The metal
will next be molded using a shaping press to make sure it fits the flask's specifications.
The flask's neck is then created using a threading machine. The exterior and inner flasks
need to be cleaned and inspected to see if any errors have occurred.
 Both materials will be integrated and combined into one if the exterior and inner
flasks pass inspection. Following that, if the flask passes the test for leaks, vacuuming
will be done. After vacuuming, the insulation or temperature test will be conducted. The
flask's surface is then polished using an electrolytic process to make it smoother. A
second insulation test is conducted after the outside flask has been mechanically polished
to eliminate scratches. The flask is given an exterior coating and has its branding
attached. In the last section, the cables, battery, spray, and fan are installed.
Subsequently, the electrical component testing is assessed in order to pass the
packaging sector.

Table 2. Direct Labor Costs.

Benefit Expense Total Gross

Designation Basic Pay (Php) Medical Bonus Salary (Php)
Allowance (Php) (Php)
General Workers 10,000 1,600 2,000 13,600
Security 12,000 1,600 2,400 16,000
Quality Control 18,000 1,600 3,600 23,200
Managers 23,000 1,600 4,600 29,200
Maintenance 13,000 1,600 2,600 17,200
Machine 14,000 1,600 2,800 18,400
Operators
Total (Monthly): 117,760
Total (Yearly): 1,411,200

The detailed wages of the employees with various designations are shown in the
table above. The bonus was calculated by taking 20% of their basic pay. Direct labor
amounted to 1,411,200 per year.

Table 3. Time Standards.

Annual Production
Annual Product Manufactured 6,500
Standard Hours of Direct Labor per Annual 2,080 hours
Product Manufactured
Standard Hours of Direct Labor per Product 0.26 hours
Manufactured
Standard Cost Per Annual Direct Labor Php 1,411,200
Standard Cost Per Direct Labor Hour Php 365.00
Direct Labor Cost Per Product Manufactured Php 88.50

The table above is a Time Standards table which gives the breakdown of the
annual production. The annual product manufactured is around 6,500 and with standard
hours of direct labor per annual product manufactured of 2,080 hours. The direct labor
cost per product manufactured is Php 88.50. Lastly, the standard cost per annual direct
labor is Php 1,411,200.

3. PRODUCT DESIGN

Here, you’ll see different tables which correspond to the capital requirement for
this business. The first table shows the capital requirements for machines and equipment
such as chemical mechanical polishing machine, industrial belt conveyor, and more. The
second table shows the capital requirements needed in the facility which will be used by
the employees. It also includes security and maintenance of the facility.

Table 4. Capital Requirements for Machines and Equipment.

MACHINES AND QUAN PRICE OF THE TOTAL COST

EQUIPMENTS TITY MACHINE/EQUIPMENT
Chemical Mechanical 2 Php 120,000 Php 240,000
Polishing (CMP)
Machine
Industrial Belt 2 Php 100,000 Php 200,000
Conveyor (50 ft.)
Tablet Coating Machine 1 Php 150,000 Php 150,000
CNC Machine 1 Php 250,000 Php 250,000
Drilling Machine 1 Php 130,000 Php 130,000
TOTAL Php 970,000

Table 5. Capital Requirements Needed in the Facility.

CAPITAL REQUIREMENTS COST

Office Facilities and Equipment Php 250,000
Work Center Php 300,000
Furniture and Fixtures Php 200,000
Building Maintenance (Annually) Php 275,000
Security (Overall for a Year) Php 250,000
Delivery Trucks Php 700,000
TOTAL Php 1,975,000

TOTAL COST OF THE CAPITAL REQUIREMENT INSIDE THE FACILITY

Php 2,945,000

These are the things that are needed inside the facility. It will cost around Php
2,945,000 or 3,000,000 if estimated. Now, it’s time to determine the cost for the
construction of the facility and its layout to know the company’s actual cost for its
investment in this facility.
The facility will be in Makati City because Makati is known for having different kinds of
businesses. Choosing Makati will help the company to have recognition and open to any
collaboration with other companies located in Makati.

Figure 3. Facility Layout

Table 6. Construction of the Facility.

CONSTRUCTION OF THE FACILITY COST

Lot Purchase Php 1,500,000
Construction Expenses Php 1,235,000
Contractor Expenses Php 800,000
Miscellaneous Fee Php 450,000
TOTAL Php 3,985,000

TOTAL EXPENSES: Php 1,975,000 + Php 3,985,000 = Php 5,960,000

Based on the calculations from the data gathered from the tables above, the
company will have to spend Php 6,000,000 or 5,960,000 to be exact. This is what the
company will need to invest in to have a place to work for their business. This isn’t the
final cost because there would be more expenses such as labor, materials for the product,
maintenance of the machines, etc.
4. COST OF GOODS SOLD PER UNIT

The Aqua Chilled water flask has the capacity of 28 ounces or around 828.059
milliliters of water, with a base diameter of 4 inches and a height of 12 as is its dimensions.
And for its production, the raw materials to be used in the soft launch of this product are
the stainless steel body, motor for the minifan, battery, mist sprayer mechanism cap, and
cork insulation. Each of these materials cost Php 450.00, Php 225.00, Php 170.00, Php
140.00, and Php 280.00 respectively. The product assembly has also been considered
for the cost of goods per unit, as well as the direct labor cost which reflect minimum wage
in the Philippines. Lastly, miscellaneous fees which include product labeling, packaging,
and distribution aspects have also been added. These can be seen in a tabulated format
in Table 5.

Table 7. Cost of Goods Per Unit.

EXPENSES COST PER UNIT (PHP)

Raw Materials:
Php 450.00
- Stainless Steel Body,
Php 225.00
- Motor for the minifan,
Php 170.00
- Battery,
Php 140.00
- Mist sprayer mechanism cap,
Php 280.00
- Cork Insulation
= Php 1,265.00
Manufacturing Overhead (Assembly) Php 105.00
Direct Labor Php 610.00
Miscellaneous Fees:
Php 45.00
- Labeling
Php 55.00
- Packaging
Php 20.00
- Distribution
= Php 120.00
TOTAL Php 2,100.00

5. TABULATED 5-YEAR SCHEDULE OF DM, DL & FO COSTS PER UNIT

Table 8. Total Cost of Goods Sold for the 5-year Study Period.

Year 2024 2025 2026 2027 2028

Direct Materials 1,265.00 1,328.25 1,394.66 1,464.40 1,537.62

Direct Labor 510.00 612.00 642.60 674.73 742.20

Manufacturing/
Factory 105.00 120.75 138.86 159.69 183.65
Overhear
Cost of Goods
2,100.00 2,205.00 2,315.25 2,431.01 2,552.56
Sold per unit
Annual Sales
4,200.00 7,560.00 13,608.00 24,494.40 44,089.92
Volume
Total Cost of
8,820,000.00 16,669,800.00 31,505,922.00 59,546,192.58 112,542,303.98
Goods Sold

Figure 4. Costs of Goods Sold Per Unit for 2024-2028.