Republic of the Philippines

BATANGAS STATE UNIVERSITY JPLPC-Malvar

Malvar, Batangas

COLLEGE OF ENGINEERING AND COMPUTING SCIENCES

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 Republic of the Philippines
BATANGAS STATE UNIVERSITY JPLPC-Malvar
Malvar, Batangas

COLLEGE OF ENGINEERING AND COMPUTING SCIENCES

ESTABLISHMENT OF 3J’s POOPOT MANUFACTURING ENTERPRISE AT

CALOOCAN, TALISAY, BATANGAS

A Project Feasibility Study Presented to the Faculty Members of the

College of Engineering and Computing Sciences
Batangas State University- JPLPC Malvar,
Batangas

In Partial Fulfilment of the Requirements for the Degree of Bachelor of

Science in Industrial Engineering

CUMABIG JEEMAE M.

LAZAGA JEIRA GRACE A.

VILLANUEVA KRISTEL JOY A.

December 2019

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Malvar, Batangas

COLLEGE OF ENGINEERING AND COMPUTING SCIENCES

CHAPTER I

PROJECT SUMMARY

This chapter contains the overview of the study, the name of the enterprise,

location, project long term goals, nature of industry and a brief description of different

feasibility criteria. The history and the timetable of the project that works as a guide for

the proponents in developing the project are also included in the chapter as well as the

major assumptions for the feasibility of the project.

A. Introduction

Anyone who buys plants knows that most nurseries sell the little saplings in

plastic bags. Once the plants are transferred to mud or cement pots, the plastic bags are

discarded. They either end up in landfills or are burnt – causing pollution and harming the

environment.

Even worse, many of these small bags just fly around and lands in green patches

where animal graze. The animals end up eating them and consequently die from stomach

ailments. Similarly, the light weight plastic bags often fly into nearby water sources and

end up in the stomachs of marine creatures.

In nurseries, conventionally plastic bags are used to grow the plant saplings.

There are many disadvantages associated with the plastic bags like not being bio–

degradable, having nil porosity, and hence not being eco-friendly. Moreover, after

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COLLEGE OF ENGINEERING AND COMPUTING SCIENCES

germination, the bag has to be torn off to facilitate root growth and in case the bag is not

torn properly the plant gets damaged.

It is in this light that the proponents conceptualized eco-friendly pot by using cow

dung and agriculture waste, which is completely biodegradable. The producers’ lies in the

idea and achieving optimum combination of mixers of cow dung and other natural

binders used to make it sturdy and resistant to pest.

They have used animal manure normally called as cow dung as a basic raw

material to prepare the pot. After preparing the raw materials, it is molded in defined

shape followed by sun drying.

The cow dung pot is the best answer for this menace of plastic bags. Not only

does it save the environment it is better for our gardens too. Once the plant gets bigger in

the cow dung pot and needs to be transplanted into the ground, there is no need to dig a

deep hole. This pot with the plant can simply be placed at the designated spot and a small

mound of mud created to conceal it.

Plants started in a cow dung planter can be placed directly in the ground without

having to disturb the root ball.

B. Name of the Enterprise

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Plate 1.1 Company Logo

A good business name can make your customers remember you easily, it could

mean free publicity, or it could help you and your employees to remember why you’re

doing what you’re doing. The firm will be named as 3J’s PooPot Manufacturing

Enterprise.

The term 3J’s came from the three proponents first letter of their names, which is

Jeira, Jeemae and Joy while the term Poop means solid waste from the body and the term

Pot is a container that is used for growing plants. The name itself indicates that the

proponent’s product is made from cow manure or poop. The proponents also make sure

that the name of the firm will be catchy and easy to understand and recognized by the

consumer, including the nature of the business and the type of the product it will produce.

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Malvar, Batangas

COLLEGE OF ENGINEERING AND COMPUTING SCIENCES

Lastly the “Enterprise” is the chosen term by the proponents to show that it is a

venture and manufactures a product.

C. Location

The location of business can be an important factor in its success. The

proponent’s desired place for the plant will be in the small town of Barangay Caloocan,

Talisay, Batangas covering an area of 1,860 square meters. The proponents also make

sure that the classification of the said location is agricultural type. Talisay is accountable

for the largest growth production of seedlings or saplings than in any other town in the

country. It is said that almost 80% to 85% of seedlings or saplings that reach other

provinces in the Philippines came from Talisay, thus acquiring the tagline “SEEDLING

BOWL OF THE NATION”. (TalisayBatangas.gov.ph)

The location was selected according to the factors like accessibility to its supplier

and costumers. The place was chosen best by the proponents to put up the enterprise

considering the access in communication, electricity and roads, thus ensured that it is

located few meters away from the highway and from the residential area so that it could

not affect the health conditions of the resident of Barangay Caloocan, Talisay, Batangas.

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Plate 1.2. Location map of Poopot Manufacturing Enterprise

D. Descriptive Definition of the Project

The 3J’s PooPot Manufacturing Enterprise is engaged for generating a product

out of cow dung. Cow dung, manure or feces is indigestible plant material released on the

ground from the intestine of a cow. It is a useful material and helps us in a variety of

ways. It is also a plentiful and renewable resource. The manure is used as a rich fertilizer,

an efficient fuel and biogas producer, a useful building material, a raw material for paper

making, and an insect repellent. Removing cow dung from fields is important because

the dried pats reduce the grazing area. Cow manure is rich in minerals especially

nitrogen, phosphorus and potassium. It can support the growth of beneficial

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microorganism when its mixed with soil. Manure can also improve the texture of the soil

and help it to maintain moisture.

As the proponents observed, the market only sells plastic, ceramic, and clay mud

pots therefore the proponents decided to create a cow dung, manure or feces pot. The

proponents encouraged the customers of the region or sectors to buy PooPot due to low-

cost selling price offered by the enterprise since it is made of cow’s manure. Also,

PooPot is eco-friendly since it is biodegradable.

E. Project Long Range Objective

3J’s PooPot Manufacturing Enterprise has a long-range plan, it aims to become

the first major supplier of natural plant pots in the country, by providing a product that

will reach customer satisfaction. It is also expected that business will be profitable and

will be able to sustain manufacturing of such product.

The enterprise wants to minimize the usage of plastic pots that caused harmful

effect in the environment. It is also expected to introduce other products that is made

from cow manure such as building material or bricks and implementing new branches in

nearby towns Tanauan and Laurel Batangas. Regarding socio economic aspects, the

enterprise will offer employment for the residents of the community and will also provide

economic welfare from the taxes. The enterprise will guarantee that the manufacturing

plant will comply with standard health and safety standards set by laboratory agencies.

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This is to ensure that the well-being of the individuals living near the plant site is not

affected.

All in all, the enterprise long term objective is to pursue continuous improvement

in the entire aspects of the company including customer service, quality, workforce

empowerment, innovation and so on.

E. Feasibility of Criteria

The feasibility of the project can be evaluated among the following criteria. These

include the marketing aspect, technical aspect, financial aspect, management aspect, and

socio-economic aspect.

Marketing aspect is one of the most useful chapters in feasibility study. Without

marketing, sales may crash, and companies may have to close. The success of the

business depends on how the product is introduced to the potential market. The fact that

if the proposed product will be accepted by the target market is then a determining factor

that this project can be implemented. Since the goal of marketing is to make the product

or service widely known and recognized to the market, marketers must be creative in

their marketing activities.

Technical aspect of a business plan is also indispensable because it will put in

view the things that are essential in starting a business. This includes the list of

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COLLEGE OF ENGINEERING AND COMPUTING SCIENCES

equipment, materials, structure plan and the source of supplies use in the proposed

project.

Financial aspect considers many things including start-up capital needed, sources

of capital, returns of investment, and other financial considerations.

Management aspect is one of the important aspect in establishing a business. It is

the performance of conceiving and achieving desired results by means of group effort

consisting of utilizing human talents and resources. Therefore, management aspect is

considered as the force that runs an enterprise and is responsible for the success or failure

of a business. The objective of management aspect of a feasibility study is to determine

the option effectiveness of the organizational setup and qualifications of the individual

who will make-up the organization. This aspect will determine the successful realization

of the project study.

Socio economic aspect deals with the effect of the project to the society, economy

and the environment. The firm will be responsible in paying all the needed taxes that will

contribute to the economy. Venturing into the business will provide a means to minimize

the unemployment rate. Taxes and fees due to the company’s operation will also help the

government to attain economic progress. To secure the health of the people when the

business operates, the waste will be disposed properly. The firm will follow the rules and

regulations imposed by the law. The firm will also help the environment by lessening the

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garbage through proper waste disposal. It will help to maintain the cleanliness of the

surrounding.

G. Highlight of the Project

The highlight of the project includes the history, the nature of the industry, mode

of financing, and the investment costs. It discusses how the proponents convey the ideas

in forming the business. The time table and status will also present to give an idea how

the business progress.

1. History

Cow dung, also known as cow pats, cow pies or cow manure, is the waste product of

bovine animal species. Cow manure is basically made up of digested grass and grain.

Cow manure has a soft texture and tends to be deposited in a circular shape, which gives

dung patches their alternate names of cow pies and cow pats. Color ranges from greenish

to blackish, often darkening soon after exposure to air. Cow dung is high in organic

materials and rich in nutrients. It contains about 3% nitrogen, 2% phosphorus, and 1%

potassium. Composting cow manure also produces about a third less greenhouse gases,

making it environmentally friendly.

The use of cow dung in the garden is a popular practice in many rural areas.

Composted cow manure fertilizer makes an excellent growing medium for garden plants.

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COLLEGE OF ENGINEERING AND COMPUTING SCIENCES

When turned into compost and fed to plants and vegetables, cow manure becomes a

nutrient-rich fertilizer. It can be mixed into the soil or used as top dressing. By mixing the

composted cow manure into the soil, we can improve its moisture holding capacity. This

allows us to water less frequently, as the roots of plants can use the additional water and

nutrients when needed. Because of the usefulness of cow dung, it gives an idea for the

proponents to pursue their preference about establishing the 3J’s PooPot Enterprise.

2. Project Time Table Status

To envision and observe the development of this project, the proponents create and

present a time table that will serve as a guide for the company from the beginning up to

its operation. The list of activities that the company should accomplish are shown below.

a. Project Conceptualization and Identification

The proponents started to conceptualize ideas regarding on the study about

implementation of 3J’s PooPot Manufacturing Enterprise from the researcher’s thoughts

and pieces of information.

b. Preparation of Product Feasibility

The proponents studied and collected data about pots to have viewpoint of how the

study will help them to pursue the proposed product. In relation to gathering scholarly

information, the proponents made extensive research in the internet and different libraries

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about pots and cow dung. The proponents also collected data from plant nursery owner,

and those who are involved in selling pots in the market.

c. Negotiations and Putting up Equity

The proponents affiliate for the startup capital of the business. It also involves the

negotiation among the company’s stockholders. The proponents also started canvassing

to different suppliers of the materials needed in the company and in producing the

product.

d. Acquisition of Land

The proponents consider the land acquisition by presenting the appropriate location

for the manufacturing company.

e. Incorporate Legal Legislation with Government Regulatory Office

The proponents also undergone filling legal registration, business permit and all other

permits needed in putting up the business.

f. Construction of the Plant and Facilities

The proponents considered the requirements of the facilities design, availability of the

material, and the safety of the men working and the passer-by.

g. Marketing and Advertising Strategy

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Proper planning, developing strategies and techniques should be implied to promote

PooPot. The proponents came up in the distribution of advertising materials and visitation

to different plant nurseries to promote the product. The proponents aimed to endorse the

product using social media for fast dissemination for it is one of the most demand in

terms of promotion and marketing. The researchers will adopt the 5P’s for the marketing

strategy which include price, promotion, people, and place.

h. Canvass and Acquisition of Machines, Tools, Equipment and Material

The researchers the price of the tools and its quality to ensure the high quality of the

finished product. Also, the machineries, tools, equipment and other materials were

ordered from the trusted suppliers to guarantee the efficiency.

i. Installation of Machine

Machineries are very important in a manufacturing company; hence, the proponents

considered the layout of where the machines should be placed and installed. Machineries

will be established according to its precise parameters to be certain that the production

will run smooth.

j. Hiring, Selection, and Recruitment of Management and Production Employees

This involves the proper selection of employees that is suitable for the job. It also

involves hiring of well-skilled personnel who can manage the business and can help in

the success of the industry.

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k. Training of Operators

The objective of training is to enable the operator to perform the job in a manner that

is satisfactory to the employer and satisfying to the employee. It should contribute to

increase output, productivity, quality, pride in quality, morale to decrease errors,

customer complaints, rejects, rework, waste, accidents, injuries, equipment downtime,

unit costs, absenteeism, and labor turnover.

l. Normal Operation

After all the requirements needed in putting up a business including the acquisition of

land, construction of plant and facilities, installation of machineries and equipment,

endorsing the product, hiring and selection of employees, and training the operators, the

PooPot Enterprise will start the operation.

Table 1.1
Gantt Chart
2019 2020
ACTIVITIES
Aug Sept Oct Nov Dec Jan Feb Mar Apr May June Jul
A. Project
conceptualizatio
n and
identification
B. Preparation of
project feasibility
C. Negotiation/
Approval/ Release
of finance form
D. Acquisition of
land

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COLLEGE OF ENGINEERING AND COMPUTING SCIENCES

E. Preparation of
project policies
F. Construction of
manufacturing
plant
G. Marketing and
advertising
strategies
H. Canvasses of
tools
I. Installations of
machine
J. Hiring of
workers
K. Training of
operators
L. Start of
manufacturing
process

3. Nature of Industry

3J’s PooPot Manufacturing Enterprise will be located at Brgy. Caloocan,

Talisay, Batangas. The business will produce coco pots made of cow’s manure. The

product will be first distributed at the vicinity of Tanauan City, and Talisay area.

The establishment of the manufacturing plant would support not only the owners

but also the workers and the users of the product. The company will produce high

quality product that is beneficial to the users to meet customer satisfaction. It will also

provide high revenues for the government and will increase the labor employment. The

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development of cow manure pots competition remains as a challenge to produce and

develop quality products.

4. Mode of Financing

In terms of financing and establishing the business, 3J’s Poopot Manufacturing

Enterprise will obtain fifty (50) % loan from Land Bank of the Philippines. The loans

are generally secured by mortgage of the Company’s properties, pledge of shares, and

personal guarantees. For the fifty (50) % capital, it will be equally shared by the three

founding proponents. The proponents guaranteed that the working capital for three

months is enough to sustain the operation of the business.

5. Investment Cost

Investment Costs is the hard and soft costs of acquisition, design, development

and construction of the Company Facility, including without limitation, the costs of

acquiring the property; the costs to prepare the property for any of the improvements

constructed on or within the property and constructing any required site work

infrastructure such as streets and roads, water and electric utilities, gas utilities, drainage

and related improvements and/or telecommunications and internet improvements; the

costs of obtaining all necessary governmental permits and approvals; the costs of design,

engineering, materials, labor, construction, and other services arising in connection with

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the design and construction of the Company Facility; all payments arising under any

contracts entered into for the design or construction of the Company Facility; legal costs

and consultant fees.

The table shown below is the summary of total investment cost of the proposed

project. The total investment cost will be 1,600,000 million. Correspondingly, the

proponents have a great certainty that those three months of working capital will be

enough to sustain that company’s operation.

Table 1.2
Summary of Investment Cost

Particulars Amount
Land 107,136.00
Building 746,900.60
Office Machineries and Equipment 79,116.00
Office Furniture and Fixtures 11,345.00
Production Machineries and Equipment 159,562.00
Total Plant, Property and Equipment 1,104,059.60

Direct Materials 12,000.00

Indirect Materials 0
Labor Cost – Admin 225,000.00
Labor Cost - Production 132,000.00
Office Supplies 6,454.50
Office Direct Expense 1500
Production Miscellaneous Supplies 34,788.00
Utilities Expense 68,697.00
Fees and Licenses 8,674.00
SSS Contribution 49,994.30
Philphealth Contribution 4,867.50
Pag – Ibig Contribution 4,500.00

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Total Working Capital (3 months) 416,475.30
Total Operating Cost 1,520,534.90
Cash for Contingency 79,465.10

Total Investment Cost 1,600,000

H. Major Assumptions and Summary of Findings

1. Market Feasibility

Market Feasibility is all about how the real world market will be reacting towards

a particular development. It is concerned with gaining the in depth knowledge and doing

a deep analysis of real estate market and knowing how the market is going to respond

towards particular project or product.

The target area of this project is located at Brgy. Caloocan, Talisay, Batangas.

The location is profitable because it is accessible on the nearby customers. The

proponents are also aware of the factors that may affect the price such as competitors and

prevailing prices from the suppliers.

2. Technical Feasibility

Technical Feasibility is the feasibility that is concerned with specifying equipment

and software that will successfully satisfy the user requirement. It compasses

the technical needs of the system.

3. Financial Feasibility

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COLLEGE OF ENGINEERING AND COMPUTING SCIENCES

Financial feasibility is one of the most important feasibility analysis required to

carry out a new project. Financial lenders put emphasis on this analysis to ensure the

project lives up to its performance expectation. It is a process through which profitability

of the project can be estimated.

4. Socio – Economic Feasibility

Socio-economic aspect aims to discuss and determine what are the social

implications of the study to the society, the economic implications and the environment

implications of the study to the economy. As for the socio-economic aspect of the 3J’s

PooPot Manufacturing Enterprise to the growth of the economy is by paying operating

expenses like legal fees, insurance, property taxes, etc. It will also be beneficial to the

people by providing job opportunities to reduce the number of unemployed individual.

5. Management Feasibility

The management aspect is one of the important aspects in establishing a business.

To achieve this, management must be able to plan all activities to become productive and

competitive in the industry through human resource, financial capability, and new

technologies. This includes a study of officers and key personnel, basic consideration in

forming the organization, form of ownership, organizational chart and project schedule.

The main objective of this plan is to determine the option effectiveness of the

organization set – up.

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I. Definition of Terms

Manure. It is an organic matter, mostly derived from animal feces except in the case

of green manure, which can be used as organic fertilizer in agriculture.

Poop. Is also known as stool or feces, is a normal part of the digestive

process. Poop consists of waste products that are being eliminated from the body. It may

include undigested food particles, bacteria, salts, and other substances.

Plant Pot. Is a container that is used for growing plant.

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Chapter II

Market Feasibilty

The term marketing applies to all business activities that are necessary to effect

transfer to ownership of goods and to provide for their physical distribution. By such

business activities, we refer to buying and selling and other economic pursuits like

transportation and storage, grading and standardization and many others which are

considered basic to bringing of goods to those who want them.

A. Product Description

Plate 2.1 The Product

1. Name of the Product

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The researchers came up with the idea of making seedling pots out of manure so

they decided to name it a “PooPot”. The entity name is also an advantage to the

company because of the simplicity of the word, easy to remember, and pronounce. The

pots are molded out of dried manure using a manual process that removes weeds and any

trace of manure odor. Through observation, nursery owners use massive amount of

plastic seedling bag that contribute to pollution.

2. Properties of the Product

The product was named “PooPot” and it composed of primary raw material

which is the cow manure. Cow produces about 120 pounds of manure per day and

disposing of that manure is a big issue. So, the researchers decided to makes a nutrient-

rich fertilizer to help the consumer to waste out the plastic and help them to grow their

plants in an organic way.

3. Uses of the Product

The main purpose of the product is to provide an eco-friendly pot by using cow

manure and to meet the demand for biodegradable pots that are affordable for the

consumer within Talisay, Batangas premises. The “PooPot” will be used to replace the

plastic seedling bags.

4. Major user of the Product

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The researchers recognize the fact that it cannot hope to serve all customers with

every possible product that can be produced. The researchers consider the major users of

“PooPot” are those who have plant nursery. The owner in the areas of Talisay, Tanauan

City, and Laurel, Batangas are the respective target market of the biodegradable pot. The

firm will manufacture a cow manure pot which will be presented to market for attraction

use or consumption.

5. Geographical areas of Dispersion

The plant location can have a crucial effect on the profitability of the company

and the scope for future expansion.

The proposed business will be located at Caloocan, Talisay, Batangas. The plant

site was chosen because it is accessible to most of the consumers and highly suggested

because it is the center of the three selected areas that have the company’s target

customer.

B. Demand

Demand refers to how much quantity of a product or service is desired by buyers. It

refers to the willingness of a consumer to buy a good o service backed-up by his

purchasing power. The proponents conducted a survey to determine the acceptability of

the proposed product and understandability of the consumer regarding it. The

questionnaires were distributed to the respondents and personally assisted them in the

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process. Interviews were made for respondents who are willing to answer questions

through questionnaires. The analysis of demand helped the proponents determine the

demand of the consumers in existing pots.

1. Historical Demand

Table 2
Historical Demand for Seedling Plants in Talisay, Batangas

Historical Demand of Seedling Plants in

Year
Talisay, Batangas

2015 2, 771, 242

2016 3, 739, 237

2017 4, 136, 649

2018 4, 672, 857

2019 5, 003, 438

Table 2 presents the historical demand of seedling plants in the year 2014 to

2018 in Talisay, Batangas. It shows that the historical demand for seedling plants

increases for the

past five (5) years.

This ensures

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that the increase in the percentage of the seedling plants portrays that there will be

a good opportunity in entering the market.

2. Projected Demand

In determining projections for demand, historical information about the

existence of the service will be considered. Projected demand signifies the

quantity of a certain service which is expected to be patronized by the consumers

in the future years to come.

Table 2
Projected Demand for Seedling Plants in Talisay, Batangas

Year Projected Demand Growth Rate

2020 5, 684, 089
2021 6, 223, 890 8.67%
2022 6, 763, 691 7.98%
2023 7, 303, 495 7.39%
2024 7, 843, 294 6.88%

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From the table above of projected demand of seedling plants, it is necessary to

put up a business with this type of good since there is an increasing value of needs

for the product. The needs and reaching for customers can be provided.

C. Supply

Supply is the willingness and ability of producers to create goods and

services to take them to market. Supply is positively related to price given that at

higher prices there is an incentive to supply more as higher prices may generate

increased revenue and profits. Table 6 shows the historical supply of seedling bags

in Talisay, Batangas for the past 2014 to 2018. As shown in the table, the supply

for seedling bags has a continuous growth for the past five years.

1. Historical Supply

Table 4
Historical Supply of Seedling Bags in Talisay, Batangas

Historical Supply of Seedling Bags in

Year
Talisay, Batangas
2015 2, 583, 984

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2015 2, 709, 387

2016 2, 883, 979

2017 3, 488, 666

2018
4, 039, 099

Figure 6 illustrates the historical supply of Seedling bags from year 2015 up to

2019, though there is an increasing trend of the supply. It has 2, 583, 984 and

increased up to 4, 039, 099 for the past five years. It will still be unable to comply

with the demand of seedling bags.

2. Projected Supply

Projected supply is an important factor in a business because it will determine the

possibilities of having a good career in a certain industry. It is also the quantity of a

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certain service which is expected to be offered to the buyers in the future. It can help the

proponents to have the pursuance of setting up the business being proposed.

Table shows the projected supply of seedling bags in Talisay, Batangas for the past

2020 to 2024. It shows the five – year projected supply for seedling bags. The proponents

used statistical straight-line method for the projection of values in giving the most

reliable forecast. It shows that from 2020 the demand for polisher is continuously

increasing until 2024 so as the supply also increases.

Table 2
Projected Supply of Seedling Bags in Talisay, Batangas

Year Projected Supply Growth Rate

2020 4, 247, 976
2021 4, 617, 027 7.99%
2022 4. 986, 078 7.40%
2023 5, 355, 128 6.89%
2024 5, 724, 179 6.45%

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Figure 2.4 Projected Supply of Seedling Bags

D. Demand – Supply Analysis

The Demand-Supply Analysis determines whether and to what extent there is a

market for the project’s output of goods and services. It is the study of how buyers

and sellers interact to determine transaction prices and quantities. For this reason,

the proponents analyzed and made a careful study in order to determine the

percentage of dissatisfaction of the market gap that needs to be filled.

Based on the historical and projection of demand and supply of seedling plants

and bags, the proponents found out that there is a continuous increase in gap for

the both products. The statistical straight line will be used in projecting the future

demand as it has the lowest standard deviation.

Table 6
Demand and Supply Analysis

No. of Demand of No. of Supply of

Year Seedling Plants in Seedling Bags in Opportunity Gap
Talisay, Batangas Talisay, Batangas
2015 2, 771, 241.83 2, 583, 984.00 187, 257.83

2016 3, 739, 236.60 2, 708, 387.00 1, 030, 849.60

2017 4, 136, 649.31 2, 883, 979.00 1, 252, 670.31

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2018 4, 672, 856.89 3, 488, 666.00 1, 184, 190.89

2019 5, 003, 438.33 4, 039, 099.00 964, 339.33

Table 2.5 Historical Demand-Supply Analysis of Seedling Plants and Bags

Figure 2.5 illustrates the comparison between the historical demand and supply

of seedling plants and bags. It shows that there is a gap between the current

situation with regards to the demand and supply. The gap helps to determine

whether the business requirements are met and, if not, what steps should be taken

to ensure it was met successfully.

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Table 2.6

Projected Demand-Supply Analysis

No. of Demand of No. of Supply of

Year Seedling Plants in Seedling Bags in Opportunity Gap
Talisay, Batangas Talisay, Batangas
2020 5, 684, 088.58 4, 247, 975.70 1, 436, 112.88

2021 6, 223, 889.90 4, 617, 026.60 1, 606, 863.30

2022 6, 763, 691.23 4, 986, 077.50 1, 777, 613.73

2023 7, 303, 492.56 5, 355, 128.40 1, 948, 364.16

2024 7, 843, 293.89 45, 724, 179.30 2, 119, 114.59

Figure 2.5 illustrates the comparison between the historical demand and supply

of seedling plants and bags. It shows that there is a gap between the current

situation with regards to the demand and supply.

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E. Market Share Analysis

Market share represents the percentage of an industry, or market’s total sales

that is earned by a particular company over a specified time period. The market

share is calculated by taking the company’s sales over the period and dividing it

by the total sales of the industry over the same period notwithstanding the demand

– supply analysis.

Figure illustrates the clear manifestation that the present manufacturers of

seedling pots satisfy the demand of their clients notwithstanding the deman supply

gap. As presented in the graph below, 74.63% of the demand was reached by the

company while 3% was set as the company’s market share considering that the

capacity of the machine tools and the availability of raw materials were bounded.

The unsatisfied demand comprises 22.63% of the total demand which becomes the

main purpose of the company to remain in a good position in the market.

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F. Price Study

Price study refers to the way a company sets the prices of its services and

products basing on their value, demand, cost of production and the market competition.

Pricing is essential for all companies as it provides a guideline for creating profits and

areas that bring in losses.

Particulars Cost Quantity Price

Direct Materials 12,000.00 192,000.00 0.06
Indirect Materials
Manufacturing Overhead 887,737.21 192,000.00 4.62
Total 4.69
Add VAT (12%) 0.56
Mark Up (50%) 1.87
Selling Price/pc 7.12

The enterprise would sell an organic and eco-friendly cow manure pots with the

with the price Php 7.12. The traditional seedling bag cost less because nursery owners

buy different type of fertilizers and it is not included to the product they bought; unlike

cow manure pots it gives a direct nutrient because it is made of 100% cow manure. The

Cow Pots develop mold, mushrooms, and fungus as part of being manure. The manure of

the formed pot develops these naturally, and when planted in the ground, the Cow Pot

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becomes part of the soil. Cow pots are uniquely different, although the cow manure pots

cost more it will definitely worth the price.

G. Factors Affecting the Market

Marketing a new product is challenging. It needs to target right customer with the

right product and promote at the right time. The factors affecting the market are

discussed below:

Price is usually viewed as the most important factor that affects the market of the

cow pots. There is an inverse (negative) relationship between the price of a product and

the amount of that product consumers are willing and able to buy. Consumers want to

buy more of a product at a low price and less of a product at a high price.

Tastes and Preference of the Product is a less tangible item that still can have a big

impact on demand. There are all kinds of things that can change one's tastes or

preferences that cause people to want to buy more or less of a product. Consumer usually

used the traditional plant pots; they are afraid to try something new that they’ve never

seen or used before so it is hard to persuade other people and satisfy them what the firm

offers.

Number of consumers in the Market The market demand for a good is obtained by

adding up the individual demands of the present as well as prospective consumers of a

good at various possible prices. The greater the number of consumers of a good, the

greater the market demand for it.

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Competition 3J’s Poopot Manufacturing Enterprise are always looking to take a bigger

share of the market, perhaps introducing a new or better version of a product that competitors

can’t offer will surely attract more customers.

Quality Customers tend to buy expensive products just to ensure that they will get the

quality they wanted, while there are some who prefers to sacrifice the quality for lower

price. Our product, Cow manure pots, encourage the quality and economy of the product

for the consumers satisfaction.

H. Marketing Program

Marketing program is a coordinated and well – designed set of activities to achieve

marketing objectives. The 4Ps- product, place, price and promotion can be used to

develop these marketing programs.

Product Strategy

The name of the product already conveys its main output, which is known as

PooPot that is made from composted manure. The firm also tends to create different sizes

of egg trays depending on the preferences of the customers. The PooPot is exceptional

and interesting to the majority of the consumers for it is made from manure which is very

unusual to hear.

Place or Distribution Strategy

The enterprise will be located at Brgy. Caloocan, Talisay, Batangas. The location

of the business will be accessible enough to meet the needs of the target market in terms

of supply and demand of the raw materials and products. Since the Talisay is the

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“Seedling Bowl of the Nation” it is the best venue to put the proponent’s firm. Also, the

place is located few meters away from the highway and from the residential area so that it

could not affect the health conditions of the resident.

Price Strategy

Pricing Strategy is an affect important element of a product marketing campaign.

A price that is too high or too low for the target market can seriously affect the sales. The

proponents have much higher price compared to the usual plastic pots but compared to

the existing product, cow manure pots have a two in one benefit that help the consumer to

save more. The PooPot can be your plant container and fertilizer at the same time. The

researchers used the summation of the direct material, indirect materials, factory

overhead, plus the VAT (12%) with the mark up 40% to get the selling price of the

PooPot.

Promotional Strategy

The company will implement techniques and strategies that will introduce the

product to the market. The firm also tends to promote the product and perform personal

selling to the customers.

The researchers decided to use social media to disseminate and introduce the

product to people using Facebook page because social media is known for easy sharing of

ideas and information and an easier access of interaction or communication through

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customers. The proponents will also distribute flyers and posters in the area where the

target customers pass by. Consumers need information assess the product and make

purchase decisions. Also, Actual demonstration can be provided to the public market or

institutions including the promotion of giving away free products as samples.

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CHAPTER III

TECHNICAL FEASIBILITY

This part of the study presents the ways by which the final product is produced. It

explains the ways by which a strategic plant location and layout can contribute to the

success of the business. It gives the detailed description of the process involve in the

service flow. The availability and capability of resources such as machineries, equipment,

supplies, and direct labor is given consideration. This item is clearly defined and the cost

of each is carefully measured. Technology offers a wide range of benefits to business

undertakings. The firm has to make use of the current technology in order to gain the

advantage over the competitors.

A. The Product

“PooPot” are manure based, bio-degradable pots that are directly plant to the ground.

There is no smell and best of all they are sustainable. Unlike, plastic pots which are form

from chemicals, cow manure pots are renewable resource. They are 100% composted

manure, rich in nutrients, and they are approved for organics. They help the nursery
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owners reduce nutrient loads which directly contributes to a cleaner, healthier

environment, and cow pots prove to grow bigger, better plants for consumers who do not

have any plastic to discard and overload the landfills.

I. Manufacturing Process

The manufacturing process is the overall production operations of the company. The

time and resources used are discussed step by step which would help the company to

maximize its resources at minimal cost.

The following are the steps in the production of PooPot Manufacturing Enterprise for

daily production.

1. Collecting the Cow manure

The first procedure is the collecting of cow manure. The workers will pick the raw

materials from the respective supplier or farm. By using shovel, the operator will dig and

lift the manure then transfer it into the container.

2. Mashing

After the preparation of the raw materials, the next process is mashing. The manure

will be spread out to a flat surface then the operator will mash it hardly to make it firm

and solid.

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3. Molding

This process will be done by the cow pot machine which is designed for the manure.

The cow manure then placed into molds to achieve the right shape and size of the output.

This molding process will be done after 2 minutes. This will be operated by the assigned

worker.

4. Drying

In drying process, the pot needs to be dried totally. The molded cow pot will

undergo a sun-drying for about 1 day, it is a traditional method to reduce moisture

content in the pots. If bad weather occurs there is an alternative way for drying, another

way of drying will be done by the drying equipment for about 45 minutes. After the

formed dried pots, it will be ready for dispatch and delivery.

5. Distribution and Delivery

The distribution of this product has direct channel of distribution. The

manufacturer distributes their products on plant nurseries. Since purchasing of seedling

pots usually done from the manufacturer to consumer it will not pass through a certain

number of people.

COLLECTING OF COW
START MANURE MASHING

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DISTRIBUTION
END DRYING MOLDING
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J. Plant size and Production Schedule

The size of the plant is based on the size of machineries, storage and the facilities

involved in the whole manufacturing area while the production schedule is the process of

arranging, controlling, and optimizing work and workloads in a production or

manufacturing process.

The manufacturing plant is located at Brgy. Caloocan, Talisay, Batangas having a

land area of 1,860 square meters. Table 3.2 shows the plant size of 3J’s PooPot

Manufacturing Enterprise and the cost of land per square meter. The cost per square

meter of land is Php 57.60, while the total area of the manufacturing firm is 1,860 square

meters which cost Php 107, 136.

Table 3.2

Plant size of PooPot Enterprise

Plant Size Size of the Land Cost (Php)

Area 1860 sq. m 107, 136.00

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Total Land Cost 107, 136.00

PooPot Enterprise determined the number of cow manure pot to be manufactured,

by considering the demand of the product on the first five years of the operations.

The production schedule is from 8:00 a.m. to 5:00 p.m. The breaktime starts at

12:00 nn and ends at 1:00 p.m. The regular operation is from Monday to Friday and it

operates 8 hrs. a day for 5 days in a week, 20 days in a month and 240 days in each year.

The table also includes the number of holidays, maintenance operation and power

shortage which are deducted to the total days to come up with the normal working days.

Table 3.3

Production Schedule of 3J’s PooPot Manufacturing Enterprise

A. In Days 2019 2020 2021 2022 2023 2024

Total Days 365 366 365 365 365 366
Less: Sundays 104 104 104 104 104 104
Less: Holidays 19 19 19 19 19 19
Normal Working Days 242 242 243 242 242 243
Less: Maintenance 2 2 2 2 2 2
Ideal Operating Days 240 241 240 240 240 240
Less: Machine Breakdown 0 0 0 0 0 0
Power Shortage 3 3 3 3 3 3
Normal Manufacturing 237 238 237 237 237 238
Days
B. Daily Production (in            
pcs.)
Maximum Possible 800 800 800 800 800 800
Production
Efficient Rate 0.80 0.84 0.87 0.88 0.90 0.92
Practical Output 640 672 696 704 720 736

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Rated Capacity 18960 190400 189600 18960 189600 190400
0 0
Less: Difference between 37920 30464 24648 22752 18960 15232
Maximum Daily Capacity
& Practical Output/Day
Practical Output before 15168 159936 164952 16684 170640 175168
Interruption 0 8
Less: Output Reduction 12640 10154 8216 7584 6320 5077
Possible Attainable 13904 149782 156736 15926 164320 170091
Production 0 4

K. Machinery and Equipment

Purchasing the right equipment and machineries would be one of the thought about

requirement to start up the business. The enterprise considered all possible sources of

equipment and machineries. It took consideration what was really needed by the business.

Cost of this equipment and machineries were acquired through canvassing.

A. Cow Manure Pot Machine

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The innovation lies in the idea and achieving optimum combination of mixers of

cow dung and other natural binders used to make it sturdy and resistant to pest. To

streamline and standardize the production process of these cow pots, Innovator developed

a manually operated cow dung pot making machine. This has enabled mass production

thereby ensuring comparatively lesser per unit cost of the cow pots. The machine is made

of mild steel and it is manually operated. The capacity of this machine is about 50 pots

per hour and might vary to the worker’s efficiency.

B. Shovel

Shovel is use for digging, lifting, and moving of cow manure into the container.

Humans can be exposed to pathogens from poorly managed animal feces, particularly in

communities where animals live in close proximity to humans. By using the shovel, it can

avoid direct contact to the cow feces and to prevent the spread of infections and bacteria.

C. Drying Equipment

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These are modern drying

lines that can be quickly heated. They adopt with some modern-day technology which

make great use to the space and give the user a multi layered dryer that uses diesel or

natural gas as its fuel. These drying lines are much more efficient in terms of power. It

has a power of 5.5 kilowatts and a working temperature of 300°C. The drying equipment

D. Vehicle

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An enclosed boxlike motor vehicle (L300) having rear or side doors and side

panels especially for the delivery of products in long distance to ensure the quality of

items is also needed.

Table 3.3
Estimated Cost of Production Machineries and Equipment

Production Machineries and Equipment Quantity Cost

L300 Vehicle 1 300,000.00
Cow Manure Pot Machine 1 18,500.00
Shovel 1 300.00
Drying Equipment 1 15,573.00
Total 578,250.00

E. Plant Location

Location plays a vital role in the profitability of every business. It is always

emphasized that a strategic location leads to most business progress in terms of

profitability. The proposed PooPot Manufacturing Enterprise will be located at Brgy.

Caloocan, Talisay, Batangas. The proponents chose this location for its accessibility to

workers and walk-in customers and even to the suppliers of raw materials. This facilitated

the distribution of the finish product to the plant nursery outlets. Communication with the
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customers and suppliers has never been a problem because of the availability of the

different telecommunication facilities.

F. Plant Layout

The plant layout shows how each department is divide to provide the workers, the

manager, as well as the customer a good ambiance. The plant layout is specifically

designed for fastest business operations and for the convenience of workers to perform

tasks. The manufacturing plant consist of the following areas: working area, drying area,

storage room, comfort room.

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Isometric View

Front View

G. Building and Facilities

This pertains to the overall facilities inside the manufacturing company. This

include the guard house lobby, administrative office, comfort room, production area,
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drying area, warehouse, and parking lot. The facilities should have sufficient space for

sanitary improvement and the organization of raw materials. The arrangement of

furniture and equipment should be applied in order to utilize the use of space.

Guard House

The guard house will serve as the area for the security guard who is responsible

for securing company from the start and end of the production. This can make every staff

safer and deter criminal activities.

Administrative Office

The administrative office is the place where the managing of transactions occurs.

They are also responsible for creating file document and reports. It also includes the

management which involves the general manager, sales clerk, and accountant.

Production area

The production area is the place where the initial raw material is converted into

finished product. Several concerns are made in designing the production area. The

proponents made sure that the area is well ventilated to avoid suffocation.

Parking Area

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This serves as a facility for parking business cars and other vehicles. The parking

area is located near the warehouse where the finished outputs are ready for easier

distribution to the consumers.

Lobby

It is a room near the entrance of the public building. The company use this facility

for their customers or visitors who may visit the company for business commitments. It

also serves as a waiting area for those who had business gatherings with the

administration and staff of the enterprise.

Warehouse

The warehouse is a large building where raw materials or finished goods may be

stored before their export or distribution for sale. This place should include proper

ventilation for finished outputs.

Comfort Room

The company provided a numerous number of comfort rooms to use by

customers, or employees of the business.

Drying Area

It is a small open space outside of the building to prevent the raw materials and

finished product from moisture and mold.

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Table 3.5 presents the estimated bill of materials as portion of the total investment

of the business. Types of facilities are a great importance considering its strength and

resilience also the quality of construction to be used.

Table 3.5

Summary of Building Cost and Materials

Particulars Cost (Php)

Masonry Works 205, 500
Steel/Rebar Works 130,000
Concrete Works 290,567
Ceiling Works 107,000
Flooring/Tiles 80,000
Roofing Works 104,910
Drainage 28,543
Electrical Works 108,400
Painting Works 111,100

Excavation 28,600
Plumbing Works 15,745
Total 1,210,365

H. Raw materials and Supplies

Cow manure is the main raw materials of the organic pot. Cow manure's is not

difficult to find. Many dairy farmers offer free manure to people who haul it away.

Manure is one of the oldest methods of fertilization, and using cow manure in a home

garden is actually fairly simple. Its other advantages include high nutrient levels and
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widespread availability. All of the raw materials are easily available and accessible since

it is all from the country. PooPot Manufacturing Enterprise will supply its raw materials

by providing its own farm with cows beside the business firm. However, in case of

calamities and other disasters occurred, the raw material for production will be acquired

from Padre Garcia, Batangas. There is no other raw materials needed in making of cow

manure pots so the direct material is very critical.

Table 3.8 shows the summary of office machinery and equipment chosen by the

proponents in starting up the business.

Table 3.8

Office Machineris and Equipment

PARTICULAR Quantity Unit Cost Total Cost

S (Php) (Php)

Computer Set 3 14,000.00 42,000.00

Aircon 1 15,498.00 15,498.00
(Centralized)
Printer 1 2,500.00 2,500.00
Telephone 1 1,598.00 1,598.00
Power Generator 1 33,230.00 33,230.00
Light Bulbs 8 468.75 3,750.00
Exhaust Fan 2 4,270.00 8,540.00
Total 71, 564.00 107,116

Source: Formosa, Ace Hardware

Table 3.9 shows the prices of office supplies that are used in operating the PooPot

Manufacturing Enterprise. The office supplies are consumable and equipment regularly
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used in offices by businesses and other organizations, by individuals engaged in written

communications, recordkeeping or bookkeeping, janitorial and cleaning, and for storage

of supplies and data. These supplies are important in every transaction of the business.

Table 3.9

Office Supplies

Particulars Quantity Unit Cost Total Cost

(Php) (Php)

Bond 1 ream 130.00 130.00

Paper(short)
Bond Paper(long) 1 ream 150.00 150.00
Ballpen 1 box 110.00 110.00
Envelope(long) 20 pcs 5.00 100.00
Envelope(short) 20 pcs 4.00 80.00
Folder(long) 10 pcs 6.00 60.00
Folder(short) 10 pcs 5.00 50.00
Staple wire 2 boxes 50.00 100.00
White board 1 pc 749.5 749.5.00
(12x18”)
White board marker 3 pcs 21.50 64.5.00
Receipt 3 pcs 14.00 42.00
Marker ink 2 pcs 45.00 90.00
Record book 2 pcs 67.00 134.00
Paper clip 1 box 17.69 17.69
Total 1, 374.69 1,877.69

Table 3.10 shows the list with the corresponding price of the furniture and fixtures

that will used in the manufacturing firm of PooPot.

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Table 3.10

Office Furniture and Fixtures

Product Quantity Unit Cost Total Cost

(Php) (Php)

Office Table 4 1,850.00 7,400.00

Sofa(set) 1 14,000.00 14,000.00
Filing Cabinet 2 1,500.00 3,000.00
Monoblock chair 6 280.00 1,680.00
Total 17,630 26,080.00

Table 3.11 shows the corresponding price of the miscellaneous supplies that will

have used in operating the PooPot Manufacturing Enterprise. The miscellaneous supplies

in each company are necessary for the personnel/employee’s personal hygiene. Also,

these supplies will be used for maintaining the cleanliness of the firm’s whole area.

Moreover, the fire extinguisher is included under this supply category. Therefore, these

supplies is not only for cleanliness but also for safety. One of these miscellaneous

supplies such as bathroom tissue will be used for just a month since those are disposal but

others can be used for a year like trash cans and dust pan.

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Table 3.11

Miscellaneous Supplies

Miscellaneous Supplies Cost

Floor mop 160.00
Rugs 154.00
Broom and Dustpan 150.00
Hand soap 65.00
Face Mask(per box) 100.00
Latex gloves(per pair) 150.00
Scoop set 38.00
Apron(per pc) 100.00
Alcohol (500ml) 104.00
Femme tissue rolls (12's) 109.00
Tolda(4yards) 600.00
Crates(per pc) 250.00
Trash can 240.00
First Aid kit 449.00
Fire Extinguisher 3,800.00
Time clock 170.00
Internet Installation (10mbps) 1,699.00
Network Routers and Adapters 880.00
Total Misc. Supplies Cost 9,218.00

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Table 3.12 shows the summary of office tools that will be used by the workers in

everyday production.

Table 3.12
Office Tools

Office Tools Cost

Scissor 20.00

Stapler 110.00

Puncher 120.00

Calculator 250.00

Total 500.00

I. Utilities

In order to operate the PooPot Manufacturing Enterprise the firm needs the

following utilities electricity, water and telecommunication utilities. The power that will

cause the machine and other facilities to function will be supplied by Batangas II Electric

Cooperative, located at Talisay, Batangas. The water supply needed by the company to

make the better composition of the product will be provided by Balibago Waterworks.

Converge Fibernet services will serve as the telecommunication service provider of the

firm. It will help the firm to communicate wth customers and suppliers about the orders

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 Republic of the Philippines
BATANGAS STATE UNIVERSITY JPLPC-Malvar
Malvar, Batangas

COLLEGE OF ENGINEERING AND COMPUTING SCIENCES

and purchased materials. Shell Gasoline Station, near the firm, will provide the petroleum

supply for the delivery vehicle used in delivery. Table below shows the utility expense of

the firm and consumption of the utilities.

Table 3.13

Utility Expense

Particulars Total
Power Consumption 10,000.09

Water Consumption 3,472.11

Internet with Telephone Expense 1,199.00

Gasoline Expense 1,536.70

Total: Php 16, 207.3

Table 3.14 shows the licenses and permits needed when establishing a business.

These licenses and permits should be complied and will come from the municipality and

barangay where the firm’s location is. The cost of each permit and license are included in

the table.

Table 3.14
Summary of License and Permit

Licenses and Permits Cost

Sanitary Permit 200.00
DTI Registration 250.00
Business Plate 130.00
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 Republic of the Philippines
BATANGAS STATE UNIVERSITY JPLPC-Malvar
Malvar, Batangas

COLLEGE OF ENGINEERING AND COMPUTING SCIENCES

Barangay Clearance 50.00

Mayor’s Business Permit 500.00
Corporate Tax Certificate 2504.00
Fire Safety Inspection Permit 1340.00
BIR Documentary Stamp 1250.00
Sec. Registration Fee 500.00
Garbage Fee 1000.00
BIR Registration 300.00
Legal Requirements 100.00
Zoning Certificate Fee 400.00
Total 8,524

I. Waste Disposal

Animal manure is a valuable resource if handled responsibly but a source of

serious challenges and public health concerns if managed inapprpriately. Risk associated

with animanl manure handling could be related to soil, water, and air quality. Waste

coming from office and production will be separated and collected by the governement

grabage truck collector. Liquid waste from the firm are coming from the cleaning of

utensils and washing of hands, it is considered as a household waste so it is not

considered as hazardous. Manure is also a cause of offensive odor. Therefore, manure

management system must integrate appropriate measures for odor control. Plan, design,

construct and manage opeartions in a way that minimizes the impact of odor on

neighbors. The location of the firm is also a considered, it has a safe distance from

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 Republic of the Philippines
BATANGAS STATE UNIVERSITY JPLPC-Malvar
Malvar, Batangas

COLLEGE OF ENGINEERING AND COMPUTING SCIENCES

residents and other- sensitive land use. As much as possible, manure storage facilities

should not be located close to residential areas.

J. Labor Requirements

Every company, regardless of the industry, has administrative duties that need to

be handled in order for the company to run efficiently. These duties are often performed

by a manager, accountant, clerk, guard, utility, and driver. PooPot Manufacturing

Enterprise has (11) eleven personnel that help them to mange the business. The monthly

salary is based on their corresponding position in the company. The company’s admin is

composed of the following personnel: (1) General Manager, this individual is the leader

for the operation and has overall responsibility for the financial success of the business.

The operations manager handles external relations with lenders, community leaders and

vendors. Frequently, this individual also is in charge of either production or marketing for

the business. This person will set in motion the vision, strategic plan and goals for the

business.; (2) An accountant who the responsibility for monthly income statements and

balance sheets, collection of receivables, payroll and managing the cash. The key aspect

here is managing the cash.; (3) A clerk (secretary), this person handles phone calls, greets

visitors, handles the mail, does the billing and performs many other tasks as required by

the office manager. (4) Guard, Secures premises and personnel by patrolling property;

monitoring surveillance equipment; inspecting buildings, equipment, and access points;

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 Republic of the Philippines
BATANGAS STATE UNIVERSITY JPLPC-Malvar
Malvar, Batangas

COLLEGE OF ENGINEERING AND COMPUTING SCIENCES

permitting entry. (5) Utility, keep the facilities clean and in proper working order. Utility

duties and responsibilities include general cleaning and maintenance, event setup and

clean up, and restocking supplies. (6) Driver, Drivers are responsible for delivering

packages to clients in a timely manner, working on nights and weekends and ensuring

that vehicles are always ready for use, among other duties. Drivers will need to lift heavy

objects and load them into their vehicles.

Table 3.14

Labor Requirement of PooPot Manufacturing Enterprise

Total Monthly
Position No. of Person Monthly Salary
Salary
General Manager 1 19,000.00 19,000.00
Accountant 1 10,000.00 10,000.00
Clerk 1 9,500.00 9,500.00
Utility 1 5,000.00 5,000.00
Company Driver 1 6,000.00 6,000.00
Operator 5 6, 700.00 33,500.00
Total 83,00.00

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