Chapter 4

PRODUCTON PLAN

Production Process

ORDINARY BREADS
1) TUNA BREAD
-Mix the drained tuna, mayonnaise, chopped red onion, salt, and pepper in a
bowl.
-Flatten the bread slices with a rolling pin.
-Spread the tuna mixture on each slice, add a slice of quick-melt cheese, and
fold the bread in half.
-Dip the folded bread in a mixture of milk and beaten egg.
-Coat the bread with Japanese-style Panko bread crumbs.
-Fry until the exterior reaches a lustrous shade of golden brown.

2) PANDESAL
- Dissolve yeast and sugar in warm milk.
-In a separate bowl, combine all-purpose flour, bread flour, salt, and baking
powder.
-Gradually add the dry ingredients to the yeast mixture.
-Knead the dough until smooth and elastic.
-Let the dough rise until it doubles in size.
-Divide the dough into pieces and roll each in breadcrumbs.
-Arrange the pieces on a baking tray and let them rise again.
-Bake in a preheated oven until golden brown.

3) SPANISH ROLL
-Dough: Mix 4 cups flour, 1/2 cup sugar, 1 tsp salt, 1 cup warm milk, 1 packet
yeast, 2 eggs, 1/4 cup butter. Knead and let rise.
-Filling: Combine 1/4 cup butter, 1/3 cup brown sugar, 1/3 cup bread crumbs.
-Assemble: Divide dough, add filling, roll, coat with bread crumbs.
-Bake: Let rise, bake at 350°F for 20 mins.

4) PAN DE CONTE( PAN DE COCO)

-Dough: Mix flour, sugar, salt, warm milk, yeast, eggs, and butter. Knead and
let rise until doubled.
-Filling: Combine butter, brown sugar, and grated coconut.
-Assemble: Divide dough, add filling, shape into rolls, and let rise again.
-Bake: Bake at 350°F until golden brown.

5) FLOWER BREAD
-Make dough: Warm milk, dissolve yeast and sugar in it. Add butter, salt and
flour until dough forms.
-Knead and rise: Knead until elastic, let rise until doubled in size.
-Shape and rise again: Divide into 7 parts, shape into balls and arrange in a
flower shape. Let rise for 30 minutes
-Bake: Preheat oven to 400°F, glaze with egg wash and sprinkle seeds of
choice. Bake for 35-40 minutes until golden brown.
SPECIAL BREADS
1) EGG PIE
-Pie Crust:
Combine 2 1/2 cups all-purpose flour, 1 tsp salt, and 2 tbsp sugar.
Cut in 1 cup chilled butter until mixture resembles coarse crumbs.
Gradually add 1/4 to 1/2 cup cold water until dough forms.
Chill the dough.
-Filling:
Beat 3 eggs, 1 egg white, 1 tsp vanilla extract, and 1 cup sugar.
Gradually add 1 3/4 cups evaporated milk.
-Bake:
Preheat oven to 350°F.
Pour filling into crust.
Bake for 15 mins at 350°F, then reduce to 325°F and bake for 30-40 mins.

2) ENSAYMADA
-Dough: Mix milk, sugar, yeast, flour, egg yolks, and salt. Knead and let rise.
-Filling: Prepare butter cream with butter and powdered sugar.
-Shape: Divide dough, roll into logs, coil into shape, and let rise.
-Bake: Bake until golden, brush with butter cream, and top with cheese.

3) MAMON CAKE
-Mix flour, baking powder, egg yolks, lemon juice, oil, and sugar.
-Beat egg whites with cream of tartar until fluffy.
-Combine mixtures, pour into molds.
-Bake at 350°F until done.

4) CRINCLES
-Cream together butter, sugars, egg, and vanilla.
-Sift together flour, cocoa powder, baking soda, and salt.
-Mix dry ingredients into the creamed mixture.
-Chill the dough.
-Roll dough into balls, coat with granulated sugar, then confectioners’ sugar.
-Bake and enjoy these rich, fudgy cookies.

5) DOUGHNUT
-Mix Dry Ingredients:
-Whisk together flour, sugar, baking powder, salt, cinnamon, and nutmeg.
-Add Wet Ingredients:
-Combine melted butter, eggs, milk, and vanilla extract.
-Gradually add wet mixture to dry ingredients, stirring until a soft dough forms.
-Shape and Fry:
-Roll out dough to ½-inch thickness.
-Cut out doughnut shapes.
-Heat vegetable oil to 350°F (175°C).
-Fry doughnuts for 1-2 minutes per side until golden brown.
-Glaze or Coat:
-Dip warm doughnuts in glaze or coat with cinnamon sugar.
Land, Building and Improvements
Table 14 provides a comprehensive list of the land, building, and land
improvements that will be procured by the proponents for their proposed
business. The land in question measures 100 square meters and comes with
a building that is estimated to cost around 200,000. The building will require
extensive renovations to be carried out within the acquired land. The total cost
for this project has been provided as the contract price, which is calculated
based on the sum of direct material and direct labor costs incurred at a
discounted rate. It is essential to note that these acquisitions are crucial for
the success of the proposed business venture and will play a significant role
in shaping its future prospects.

PARTICULARS AREA COST

LAND WITH BUILDING 100 METER SQUARED 200,000 (150,000
land/50,000 building)
BUILDING - 112,290
RENOVATION
TOTAL 312,290

Equipment and Tools

Table 16 shows the list of equipment and tools to be used in the
proposed business.
BAKING QUANTIT
UNIT UNIT COST TOTAL COST
EQUIPMENTS Y

Flour Sifter 1 pc ₱ 100,000 ₱ 100,000

Dough Mixer 1 pc ₱ 30,000 ₱ 30,000

Dough
1 pc ₱ 115,000 ₱ 115,000
Divider/Rounder

Toast Molder 1 pc ₱ 80,000 ₱ 80,000

Dough Proofer 1 pc ₱ 20,000 ₱ 20,000

Oven 1 pc ₱ 35,000 ₱ 35,000

Bread Slicer 1 pc ₱ 20,000 ₱ 20,000

Baking Trolley w/
1 pc ₱ 2,000 ₱ 2,000
Rack

TOTAL ₱ 402,000
 UNIT TOTAL
BAKING TOOLS QUANTITY UNIT
COST COST

Working Table 1 pc ₱ 10,000 ₱ 10,000

Baking Sheet / Pan set of

1 pc ₱ 1,000 ₱ 1,000
10

Loaf / Toast Pan Set of 3 1x70 Set ₱ 580 ₱ 40,600

Mixing bowl Set 1 Set ₱ 2,050 ₱ 2,050

Rolling Pin 2 pcs ₱ 250 ₱ 500

Bench Scraper 1 pc ₱ 460 ₱ 460

Food Processor 1 pc ₱ 3,500 ₱ 3,500

Knife Set 1 Set ₱ 1,200 ₱ 1,200

Oven Mits 3 pcs ₱ 580 ₱ 1,740

Tong 3 pcs ₱ 500 ₱ 1,500

Digital Kitchen Timer 1 pc ₱ 350 ₱ 350

Whisk 1 pc ₱ 200 ₱ 200

Measuring Cups Set of 3 1 Set ₱ 630 ₱ 630

Measuring Spoon 1 pc ₱ 600 ₱ 600

Dry Measuring Spoon 1 pc ₱ 1,000 ₱ 1,000

Pastry Brush 2 pcs ₱ 360 ₱ 720

Silicone Pastry Brush 2 pcs ₱ 500 ₱ 1,000

Pastry Bag with Nozzle 1 pc ₱ 500 ₱ 500

Non-Stick Casserole 1 pc ₱ 450 ₱ 450

Can Opener 1 pc ₱ 500 ₱ 500

Spatula 2 pcs ₱ 300 ₱ 600

Grater 2 pcs ₱ 500 ₱ 1,000

Parchment Paper 1 pc ₱ 130 ₱ 130

TOTAL ₱ 70,230
BUILDING RENOVATION COSTS

Item Quantity Unit Unit Cost Total Cost

Plywood 3/4 30 pcs ₱ 385 ₱ 11,550

Ply board 3/4 20 pcs ₱ 640 ₱ 12,800

Assorted nails 2 kilo ₱ 75 ₱ 150

Stick wood (pandikit) 3 liter ₱ 120 ₱ 360

Tiles (big) 80 pcs ₱ 195 ₱ 15,600

Box 30 tiles 400 pcs ₱ 25 ₱ 10,000

Handle Cabinet 20 pcs ₱ 65 ₱ 1,300

Roller brush 2 pcs ₱ 70 ₱ 140

Baby roller 2 pcs ₱ 60 ₱ 120

Paint brush 6 pcs ₱ 30 ₱ 180

Thinner 2 liter ₱ 260 ₱ 520

Kornisa 30 feet ₱ 280 ₱ 400

gallo
Kornisa (paint) 2 ₱ 460 ₱ 920
n

White paint (first

3 liter ₱ 1,100 ₱ 3,300
coating)

Paint (16L) 3 pcs ₱ 1,950 ₱ 5,850

Double swing door 1 pc ₱ 19,000 ₱ 19,000

Glass window 3/8 2 pcs ₱ 5,250 ₱ 10,500

Glass window 1/2 5 pcs ₱ 4,000 ₱ 20,000

TOTAL ₱ 116,290
 RAW MATERIALS

INGREDIENTS QUANTITY UNIT UNIT COST TOTAL COST

Flour 125 kg ₱75 ₱ 9,375

Sugar 5 sacks (25) ₱ 2,500 ₱ 12,500

box
Evaporada 5 ₱ 1,744.80 ₱ 8,724
(48pcs)

box
Condense 5 ₱ 2,000 ₱ 10,000
(48pcs)

Baking Soda 5 sacks (25) ₱ 3,000 ₱ 15,000

Cornstarch 10 kilos ₱ 45 ₱ 450

Vanilla 5 liter (4) ₱ 200 ₱ 1,000

Cocoa Powder 10 sacks (25) ₱ 820 ₱ 8,200

Egg (medium) 25 tray(24) ₱ 210 ₱ 5,250

Corn Flour 10 sacks (25) ₱ 1,500 ₱ 15,000

TOTAL ₱ 85,500

DEPRECIATION OF FIXED ASSETS

PARTICULARS TOTAL SALVAG ESTIMAT YEAR 1 YEAR 2 YEAR 3

COST E ED
VALUE USEFUL
L LIFE
Building 162,299 50,000 10 11,229.9 11,299.9 11,299.9
BAKING
EQUIPMENTS
Flour Sifter 100,000 35,000 5 13,000 13,000 13,000
Dough Mixer 30,000 8,000 5 4,400 4,400 4,400
Dough 115,000 45,000 5 14,000 14,000 14,000
Divider/Rounder
Toast Molder 80,000 30,000 5 10,000 10,000 10,000
Dough Proofer 20,000 7,500 5 2,500 2,500 2,500
Oven 35,000 7,000 5 5,600 5,600 5,600
Bread Slicer 20,000 7,500 5 2,500 2,500 2,500
Baking Trolley w/ 2,000 800 5 240 240 240
Rack
TOTALS 63,540 63,540 63,540
ACCUMULATED DEPRECIATION
PARTICULARS YEAR 1 YEAR 2 YEAR 3
Building 11,229.9 22,599.8 13899.7
BAKING
EQUIPMENTS
Flour Sifter 13,000 26,000 39,000
Dough Mixer 4,400 8,800 13,200
Dough 14,000 28,000 42,000
Divider/Rounder
Toast Molder 10,000 20,000 30,000
Dough Proofer 2,500 5,000 7,500
Oven 5,600 11,200 16,800
Bread Slicer 2,500 5,000 7,500
Baking Trolley w/ 240 480 720
Rack
TOTALS 63,540 127,080 190,620

PLANNED PRODUCTION CAPACITY

The proposed business will be operating from 5:00 am to 6:00 pm to
accommodate all the customers.

YEAR KG OF MONTHLY ANNUAL

FLOUR AVE. BREAD PRODUCTION
DAILY PRODUCED
1 15 450 30,600
2 20 600 40,800
3 25 750 51,000

IN YEAR 1
Utilizing a fundamental ratio, we can assess the weight of dough by
combining 1 kilogram of flour with 0.7 kilograms of water (approximately
equating to a hydration level of 70%), yielding a total mass of 1.7 kilograms
per batch.

The weight of each petite loaf is contingent upon its desired size, and for this
example, let us consider a small loaf weighing approximately 300 grams.

By utilizing these calculations: From an allotment of 450 kilograms of flour -

the total dough mass equals to the product between 1.7 kg multiplied by 450
which yields an estimated sum value equalling to about ≈765 kilograms
overall.

To calculate how many small loaves can be produced from this amount;
divide the Total Dough Weight by Weight Per Loaf resulting in approximating
at ≈2550 small loaves that could be made in one month using up all available
flour stock.

Therefore, if such practices are maintained throughout twelve months

annually then it will result in producing no less than thirty thousand six
hundred pieces or more accurately put as approximately 30,600 units of petite
bread yearly.

Terms and Conditions of Purchases

All tools and equipments will be purchased on cash basis to avoid any
interest to avoid any interest expense that may be incurred by the business.

Raw Material Availability

The raw material to be purchased are always available in many store
anywhere.

Labor Productivity
Man power is available in the area. The mode of hiring is not a problem
since there are a lot of applicants in the said area.

Operating Expense
The proponents had identified the operating expenses to be incurred
on the day-to-day operations of the proposed business.
Salaries Expense
The proposed business will employ two baker and one cashier.The labor cost
is in the form of salary expense. For the first year of operations, the cost for
the bakers and cashier will be P8,000 and P4,000.00, respectively, on a
monthly basis. Table 23 shows that salaries expense is expected to increase
by 5% annually.

YEAR BAKER 1 BAKER 2 CASHIER TOTAL ANNUAL

AMOUNT SALARY
MONTHLY
1 8,000 8,000 4,000 20,000 240,000
2 8,400 8,400 4,200 21,000 252,000
3 8,820 8,820 4,410 22,050 264,600

Permits, fees and licences

This table shows the cost of registering business for permits, fees and
licences. Cost acquiring permits and licences is assumed to increased by 5%
annually.

YEAR AMOUNT
1 5,000
2 5,250
3 5,512.5
Supplies Expense
Table chuchu displays the anticipated expenditures for supplies
required for business operations. It is assumed that there will be an annual
increase of 5% in supply expenses.
Supplies and expense
YEAR AMOUNT
1 405,000
2 425,250
3 446,512.5
(It is projected that proposed business will use 15kg per day totalled 450kg
monthly. 450kg multiplies to 12 months we have 5,400kg per year with 75
peso per kilo).

Summary of Production
Table chuchu presents an overview of the non-current assets required
for the proposed business. Additionally, table chuchu outlines the day-to-day
operating expenses that will be incurred in running the business.
Non Current Asset
PARTICULARS YEAR 1 YEAR 2 YEAR 3
Land,Building 312,290 312,290 312,290
and
Improvements

402,000 402,000 402,000

Equipment

Accumulated Derpreciation
Building 11,229.9 22,599.8 13899.7
BAKING 63,540 127,080 190,620
EQUIPMENTS
TOTALS 74,840 146.680 204,520

Operating expense
PARTICULARS YEAR 1 YEAR 2 YEAR 3
Buildings 11,229.9 11,299.9 11,299.9
Depreciation
Baking 52,240 52,240 52,240
Equipments
Depreciation
Salaries expense 240,000 252,000 264,600
Permits, fees and 5,000 5,250 5,512.5
licences
Supplies and 405,000 425,250 446,512.5
expense