For Binding

Tel#: (032) 495-2010 Fax#: 495-2011
Office Address: A.S. Fortuna St.

Mandaue City
Goodies and Treats E-mail: goodiesandtreats@yahoo.com

Company
APPROVAL SHEET
This study entitled “A Feasibility Study on Edible Spoon and Fork” prepared
and submitted by: Alvin Baring, Raoul Julius Bascon, Frend Cabahug in partial
fulfillment of the course IE-52: Project Feasibility Study has been examined and is
recommended for acceptance and approval for Oral Examination.
FEASIBILITY EVALUATION COMMITTEE
Engr. Kristian Cabahug Engr. Teodorico Mejaran

Chairman Member
Engr. Kristian Cabahug

Adviser
PANEL OF ORAL EXAMINERS
Approved by the panel of Oral Examiners with the grade of ____________________
Engr. Kristian Cabahug Engr. Teodorico Mejaran

Chairman Member
Engr. Kristian Cabahug

Adviser
Accepted in Partial Fulfillment of the Requirements for the Degree of Bachelor of

Science in Industrial Engineering
September 13, 2010 Engr. Kristian Cabahug,

M. Engg.
Date of Oral Defense Chairperson Allied
Engineering
ACKNOWLEDGMENT
A
Tel#: (032) 495-2010 Fax#: 495-2011

Mandaue City

The researchers
Company wish to express their heartfelt gratitude and sincerest appreciation
to the following persons who have contributed to the completion of this paper.
To Engr. Kristian Cabahug, the Chairperson of the College of Allied
Engineering, encouragement and suggestions in making these research a reality.
To Engr. Teodorico Mejaran, our adviser, for his much needed encouragement
and assistance throughout the research process and for his dedication in motivating
us to give the best.
To Mrs. Bennette Amores, for the effort, understanding, time and expertise in
the completion of the study.
To Ms. Mae Angelie Maloloy-on for helping in the preparation of the figures in
the study and for the patience she had shown to the researcher.
To our parents, siblings, and relatives who continuously provide the
challenge, and who sustained emotional support, motivation, and love from the
start of the study to its completion.
To all of our friends, the researchers wish to say THANK YOU VERY MUCH!
The researchers are forever grateful to the Most Powerful and Divine
Almighty God for his continued enlightenment in giving the knowledge and wisdom,
good health and perseverance that has made it possible for us to undertake this
study and fulfill its aim.
A
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Mandaue City

Company DEDICATION
We dedicate this study to our
Dear parents who constantly support,
Care, and love us unconditionally.
We owe all of you a lot.
A
Table of Contents
Table of Contents.........................................................................................................i
RATIONALE................................................................................................................. v
Research and Methodology........................................................................................vi
SCOPE AND LIMITATIONS..........................................................................................vii
Chapter I.....................................................................................................................1
MARKETING ASPECT...................................................................................................1
SCOPE OF THE MARKETING ASPECT...........................................................................1
INTRODUCTION...........................................................................................................3
EXECUTIVE SUMMARY.................................................................................................4
MAJOR ASSUMPTIONS.................................................................................................5
Target Market.............................................................................................................6
Description of the Market........................................................................................9
Mandaue City.......................................................................................................9
Lapu-lapu City.................................................................................................... 10
Cebu City............................................................................................................ 13
AREA OF DISPERSION............................................................................................18
Demand....................................................................................................................19
Projected Demand Using the Four Methods of Projections....................................23
Projected Demand (1 pack approx. 50g)...............................................................24
Projected Demand Graph......................................................................................25
Supply....................................................................................................................... 26
Projected Supply (1 pack approx. 50g)..................................................................30
Projected Supply Graph.........................................................................................31
Past Demand and Supply..........................................................................................32
Proposed Strategic Marketing Plan...........................................................................37
Marketing Strategies and Tactics..........................................................................37
Distribution Channel.................................................................................................40
Marketing Mix........................................................................................................... 40
Product Life Cycle.....................................................................................................42
There are four stages in a product's life cycle.......................................................43
Introduction Stage..............................................................................................44
Growth Stage.....................................................................................................45
Maturity Stage....................................................................................................45
Decline Stage.....................................................................................................46
Pricing Scheme of Competitor..................................................................................48
Conclusion:............................................................................................................... 50
CHAPTER II................................................................................................................ 51
TECHNICAL ASPECT.................................................................................................. 51
Scope of Technical Aspect........................................................................................51
INTRODUCTION.........................................................................................................53
MAJOR ASSUMPTIONS:..............................................................................................54
PROJECT SITE............................................................................................................ 55
Factors in Evaluating Location Analysis....................................................................61
ALTERNATIVES SITES................................................................................................62
PLANT LAYOUT..........................................................................................................63
Goodies and Treats Plant Layout..............................................................................66
Production Area Layout.........................................................................................67
PRODUCT DESCRIPTION............................................................................................68
The Product........................................................................................................... 68
RAW MATERIALS....................................................................................................71
Description of Raw Materials..............................................................................72
MANPOWER REQUIREMENTS / MACHINE AND HEAD COUNT.....................................77
Manufacturing Process.............................................................................................87
The Process for Making Sporkie.............................................................................88
Detailed Description of Manufacturing Process.....................................................89
PROCESS FLOW CHART.............................................................................................90
PRODUCTION SCHEDULE..........................................................................................91
SUMMARY OF OPERATIONS.......................................................................................93
PRODUCTION SCHEDULE..........................................................................................95
FLOW PROCESS CHART OF GOODIES AND TREATS COMPANY..................................97
Summary of Flow Process Chart:...........................................................................99
INVENTORY AND PROCUREMENT SCHEDULE............................................................99
SAFETY PROGRAMS................................................................................................ 102
Location of Fire Extinguishers and Direction to Fire Exits....................................104
Fire Extinguisher Placement Requirements............................................................104
Class A................................................................................................................. 104
Class B................................................................................................................. 104
Class C...............................................................................................................104
Class D................................................................................................................ 104
Class K.................................................................................................................105
MAINTENANCE PROGRAMS.....................................................................................106
QUALITY CONTROL PROGRAM................................................................................107
STANDARD PROCEDURE FOR TESTING THE STRENGTH OF THE PRODUCT .........108
PRODUCTION FACILITIES.........................................................................................109
Capacity Computation............................................................................................110
Conclusion:............................................................................................................. 113
CHAPTER III.............................................................................................................115
MANAGEMENT ASPECT...........................................................................................115
SCOPE OF MANAGEMENT ASPECT...........................................................................115
Introduction............................................................................................................ 117
Major Assumptions.................................................................................................118
Historical Account...................................................................................................119
Vision, Mission, Objectives and Values...................................................................121
Vision:................................................................................................................. 121
Mission:............................................................................................................... 121
Objectives:.......................................................................................................... 121
Values:................................................................................................................. 122
Title of the Project..................................................................................................122
Name of the Company............................................................................................122
The Company Logo:................................................................................................123
Business Location...................................................................................................124
PROPONENTS OF THE PROJECT...............................................................................125
FORMS OF OWNERSHIP..........................................................................................126
TYPE OF ORGANIZATION......................................................................................126
Goodies and Treats Company.................................................................................129
Organizational Chart...............................................................................................129
PRE-0PERATING ACTIVITIES:...................................................................................130
Job description and Qualifications...........................................................................131
JOB DESCRIPTION REFERENCE................................................................................133
Personnel Plantilla.................................................................................................. 135
COMPANY POLICIES................................................................................................138
Health Attendance Policy........................................................................................139
Overtime policy...................................................................................................... 139
BENEFITS................................................................................................................140
LEAVE BENEFITS..................................................................................................142
COMPANY RULES AND REGULATIONS.....................................................................143
PERFORMANCE APPRAISAL FORM...........................................................................145
Waste Management................................................................................................149
CONCLUSION:.........................................................................................................150
CHAPTER IV............................................................................................................ 152
FINANCIAL ASPECT................................................................................................. 152
SCOPE OF THE FINANCIAL ASPECT.........................................................................152
INTRODUCTION.......................................................................................................153
Major Assumptions.................................................................................................154
CREDIT AND COLLECTION POLICIES........................................................................156
TOTAL PROJECT COST.............................................................................................156
PROJECTED INCOME STATEMENT............................................................................158
FINANCIAL RATIOS..................................................................................................162
Profitability Ratio.................................................................................................162
Net Profit Ratio....................................................................................................164
Return on Equity Ratio........................................................................................164
Operating Return.................................................................................................165
on Asset............................................................................................................... 165
Net Return on Asset............................................................................................165
Turnover ratio......................................................................................................166
Quick ratio........................................................................................................... 167
Leverage ratio.....................................................................................................167
Payback Period....................................................................................................168
CHAPTER V.............................................................................................................171
SOCIO-ECONOMIC ASPECT......................................................................................171
A. INTRODUCTION...................................................................................................171
B. IMPACT STATEMENT...........................................................................................172
C. COST BENEFIT EVALUATION...............................................................................173
D. SENSITIVITY ANALYSIS........................................................................................174
E. ENVIRONMENTAL IMPACT...................................................................................174
F. REQUIREMENTS NEEDED TO START A BUSINESS................................................174
G. CONCLUSION......................................................................................................175
RATIONALE
Edible Utensils like spoon and forks are increasing in popularity in other
countries since these are unique and functional products that could help control
pollution by replacing disposable plastic utensils that harm the environment. Edible
utensils are not available here in the Philippines thus, giving the proponents an
opportunity to explore if producing these products would be feasible locally. The
proposed product is made of cookies because cookies are one of the favorite snacks
of Filipinos. Variety of flavors and designs of cookies are being produced in the
market. People from all ages love cookies. Although cookies are traditional foods,
the technical and technological innovations are continuously evolving to adapt them
to the global consumers of all ages. Recipes have been modified and continuously
adjusted to suit the taste of the consumer. Production equipments have been
improved, modernized and up-graded to guaranty efficient productivity.
Research and Methodology
The feasibility study on Edible Spoon and Fork in Cebu Provinces has gone various
procedures in determining both the independent and dependent variables or
information related and significant to the study. The following procedures were
made by the proponents to obtain relevant information for the study.
• An interview was conducted on the different distributors on Edible Spoon and

Fork to get the required data for supply computation.
• An interview and survey questionnaires were given to each household

respondents to determine the demand.
• Data for both Supply and Demand were tailed to get the percentage.
• Computation for the projection of the Demand and Supply is obtained.
• An online research through the internet was made to determine potential

source of resources and related information for the study.
SCOPE AND LIMITATIONS
A Project Feasibility Study is an essential method to start a new project or to
determine whether a particular project will be profitable or not and also one way of
evaluating the actual project results.
The proponent considered the five phases as its cope and limitations. These
are as follows:
1. THE MARKETING ASPECT
This includes the identification of potential customer’s demand and

choosing the best method for demand and supply computation. This also
includes the identification of the market area and proper location of the firm.
2. THE TECHNICAL ASPECT
This includes choosing the right location in order to start a new

business. This determines on which machineries and equipment that are to
be used and the required manpower.
3. THE MANAGEMENT ASPECT

This includes making policy mission and vision for the company. This
tackles all topics that are related to management.
4. THE FINANCIAL ASPECT
This includes the total investment of our company and determining the
profitability in order to identify if the business is feasible or not.
5. THE SOCIO-ECONOMIC ASPECT
This includes the relationship between several people (costumers,

suppliers, community, government and others).
Chapter I
MARKETING ASPECT
SCOPE OF THE MARKETING ASPECT

• INTRODUCTION
• EXECUTIVE SUMMARY
• MAJOR ASSUMPTIONS
• TARGET MARKET
• DESCRIPTION OF THE MARKET
• AREA OF DISPERSION
• DEMAND
• SUPPLY
• PAST DEMAND AND SUPPLY
• PAST DEMAND
• DEMAND COMPUTATION
• PROJECTED DEMAND USING THE FOUR METHODS OF PROJECTONS
• SUMMARY ON THE STANDARD DEVIATION ON THE FOUR METHODS OF

PROJECTIONS
• PROJECTED DEMAND
• PROJECTED DEMAND GRAPH
• PAST SUPPLY
• COMPUTATIONS OF TOTAL SUPPLY INCLUDING OTHER COMPETITORS
• PROJECTED SUPPLY GRAPH
• PAST COMPETITOR’S MARKET SHARE
• PRESENT MARKET SHARE
• PROJECTED UNTAPPED MARKET
• PROPOSED STRATEGIC MARKETING PLAN
• MARKETING STRATEGIES AND TACTICS
• DISTRIBUTION CHANNEL
• MARKETING MIX
• PRODUCT LIFE CYCLE
• CONCLUSION
INTRODUCTION
One of the most important factors to consider in any business establishment is

marketing. It involves all activities of getting goods from the producer (as well as
from distributor) to the consumers. With proper strategy, planning and a good
marketing program, the ultimate goal and main focus of any business enterprise
will be achieved and that is profitability.
Marketing is the process by which companies create customer interest in

products or services. It generates the strategy that underlies sales techniques,
business communication and business development. It is an integrated process
through which companies build strong customer relationships and create value
for their customers and for themselves. Marketing is used to identify the
customer, to keep the customer, and to satisfy customer. In this aspect,
companies will come up with various marketing strategies to inform the market
of what they are producing.
The company will make a product that meets customer’s expectation. The
company is responsible for the physical distribution of the product. The
proponents will determine the channel of distribution that will be used and will
supervise the profitable flow of goods from the factory to its end consumer.
Source: http://www. Wikipedia, marketing
EXECUTIVE SUMMARY
• The Goodies and Treats Company, proposed as manufacturer of edible spoon

and fork
• The target market includes the total number of individuals particularly in a 5-
14 age bracket particularly in Cebu, Mandaue and Lapu-lapu City( these
areas serve as testing markets)
• The company will have direct distribution of its products to its chosen
retailers down to the ultimate consumer
• Jack and Jill, Kraft, Monde M.Y San, Galinco and others are the existing
competitors considered in the Snack Industry (Cookies and Biscuits) by the
Goodies and Treats Company
• The proponents use the Slovins formula with percent error of 10%
• Total of 100 respondents belonging to a 5-14 yrs. age bracket were surveyed
to represent the totality of Lapu-lapu, Mandaue and Cebu City individuals
• Promotional activities include the use of leaflets, promotional posters and

signage making with company logo for retail stores
• The company holds a 3.11% market share
MAJOR ASSUMPTIONS
• The total demand is based on the total number of individual population from
a 5-14 age bracket here in Cebu, Mandaue and Lapu-lapu City
• The samples were computed based on the data obtained from the National
Statistics Office
• The supply was based on the data gathered from major competitors
• Demand is greater than supply
• During its first year of operation, the proponents assume to have a market
share of 1.05%
Target Market
Target Market is referred as one or more specific groups of potential

consumers which an organization directs its marketing program (Dictionary of
Marketing terms, p.49)
Projected target market based from the total population
14-15age bracket
Other age brackets
• The proponents’ target market belong to these areas:
o Lapu-lapu City
o Mandaue City
o Cebu City
• Children from 5-14 years of age are the target market of the company.
20% of the total population in these areas belongs to this age group.
This 20% is equivalent to 316,915 people. These people are mostly
students in elementary level who have buying power because of the
allowance given to them by their parents.
Population of people belonging to the 5-14 yrs.
age bracket
Growt
h rate 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
148,8 151,84 154,94 158,04 161,20 164,4 167,7 171,0 174,4 177,9 181,5
Cebu 2% 11 8 7 6 7 31 20 74 95 85 45
Mandau 59,56 72,70 75,61 78,63 81,78 85,05 88,45
e 4% 8 62,050 64,635 67,220 69,909 6 4 8 4 5 7

Lapu- 53,60 79,77 86,16 93,05 100,4 108,5 117,2
lapu 8% 3 58,265 63,331 68,397 73,869 9 1 4 98 38 21
261,9 272,16 282,91 293,66 304,98 316,9 329,4 342,7 356,7 371,5 387,2
Total 82 2 3 4 5 15 95 66 78 79 24
Note: NSO population data with age 5-14 years age bracket 2007 is projected into 2010
Source: http://www.census.gov.ph./data/census2007/index.htm
Description of the Market
Mandaue City
Land Area
Mandaue City has a total of 27 barangays in a total land area of (from: land area of
3, 532 hectares last 1998 data) 4, 410 hectares. Bounded in the north by the town
of consolacion, by cebu city to the south and west and by the Mactan Strait to the
east. It has the shape of a heart situated directly in front of Mactan Island and seven
kilometers away from Cebu City.
Distribution of Land Area to Uses:

Residential : 965.10 has.
Commercial : 527.7 has.
Industrial : 1,381 has.
Agricultural/others : 658.2 has.
Location
The locality is situated on the central coastal plains of the Province of Cebu,
approximately at 10-19’ – 40.34" degrees latitude and 123-5-28,16"degrees
longitude. Mandaue has an average elevation of land at 55 ft. above sea level. It is
bounded by the Municipality of Consolacion to the North. The City of Cebu to the
South and West by the Mactan Channel to the East.
Topography and Land Features
Mandaue’s territorial span includes 15% highlands, while the greater part of the city
is the central plains compromising 65% of its land, 11 of its barangays are
distributed along the 5-kilometer shoreline.
Trade and Industry
Exporter : 243
Gen Merchandise : 1,161
Manufacturer/Importer : 608
Services : 1,473
Financial Intermediaries
Commercial Bank/Money Shops : 37
Government Banks : 4
Savings Bank : 3
Lending/Pawnshop : 45/20
Cooperatives : 20
Factors to be Considered When Investing in Mandaue City
1. Proximity to Mactan International Airport, Cebu Port, etc.

2. Safety and Security
3. Availability of quality labor force
4. Local Government’s support for new businesses
5. Adequate provision of infrastructure
6. Availability of sufficient area of land
7. Relatively advantageous land rent
8. Mandaue City’s strategic location for international business linkages
9. Amenities and facilities
10.Flat terrain.
Lapu-lapu City
Geography
Distance from Manila : 365 miles ( 1 hour travel )

Distance from Cebu Island : 350 meters at the narrowest portion of the Mactan
Channel accessible through the Mandaue-Mactan Bridge.
Topography
The area is generally flat with slopes of 0-3%. There are rivers or creeks in the
island.
Climate
Average Annual Rainfall 1,638 mm

Temperature Range 65-95 ° F
Dry Season February – May

Rainy Season June – January
Trade, Industry and Tourism
Mactan Economic Zone (MEZ) Exports
MEZ exports increased by 21.0 percent to compromise 63.35 percent of the total
exports and exceed its projected share to regional exports by 1.35 percentage
points. Value of exports of non-MEZ enterprises registered to US$ 3.59 million.
Manufacturing activity at the MEZ increased as manifested in the significant rise in
employment at 10.0 percent. As of the first quarter of 1998, the processing has 130
locators/foreign companies doing business in the zone employing 36,000 people
with a monthly payroll of P150 million.
Transportation and transport Facilities
This is the country’s second international airport and the most important transport
facility in the Visayas and Mindanao.
Domestic Destinations : serviced by Philippine Airlines, Grand Air, Air
Philippines, Cebu Pacific, and Mindanao Express.
International Destination : serviced by PAL and other airlines, Direct flights to the
following points are available.
• Bangkok, Thailand
• Brunei
• Hongkong
• Malaysia
• Narita, Japan
• Singapore
• Sydney, Australia
• Taipei, Taiwan
In-City and Cebu transport
Land : Jeepneys, tricycles, taxicabs, buses, cars for hire

Sea : Metro ferry, pumpboats, barges ( across Mactan Channel )
Wharves
Public : Muelle Osmena

Private : Seven( Owned by various establishments )
Communications
Philippine Long Distance Company and ISLACOM with national and international
direct dialing facilities.
Hospitals
Two public hospitals with 85 bed capacity and one private hospital and various
other private clinics.
Peace and Order
Lapulapu City is generally peaceful with a relative low crime rate. Protection
services are provided by the City’s Police Force, Fire Department and Barangay
Tanods.
Cebu City
Location : 365 miles south of Metro Manila, located midway on the East Coast of
Cebu Island
Area : 32,880 hectares
No. of Barangays : 80 barangays
Cebu City, the regional capital of Central Visayas, lies at the heart of the Philippine
archipelago, 365 miles south of Manila. Located midway on the East Coast of Cebu
Island, it is bounded on the north by the Municipality of Talisay and on the west
by Toledo City and Balamban.
Cebu City has a total land area of 328.80 square kilometers (32.880 hectares).
Along the coast, the terrain is relatively flat, accounting for 15% of the total area.
This becomes rolling and hilly at elevations of 40 to 200 meters above sea level,
then, turns generally rugged and mountainous at elevations of 200 to 800 meters.
Natural barriers protect the city from rough elements. Along its northwestern rim
lay the mountain ranges of Cebu, while on the opposite side, Mactan Island protects
the city harbor from strong winds. Three rivers in the city- Guadalupe, Lahug and
Kinalumsan – serve as natural flood drains.
The city is politically divided into 80 barangays, which are clustered into two
congressional districts. The North District with 46 barangays and the more densely
populated South District with 34. Although the city is predominantly urban, 1 of its
80 barangays (38%) is located in the uplands.
Pleasant weather generally prevails over metropolitan Cebu. It is seldom visited by
typhoons, being outside the typhoon belt.
THE RESOURCES
Cebu City has 20,655 hectares classified as alienable/ disposable land amounting to
63 percent of its total land area. The remaining 12,225 hectares composing 37
percent are classified as public land.
There exist two distinct land uses: (1) the highly urbanized and industrialized zones
concentrated in about 5,083 hectares of flat land along the coast: and (2) the
outlaying 27,797 hectares of rugged terrain, commonly referred to as the Central
Cebu Hillylands.
As to water resources, Cebu City has five major rivers with a total catchment area of
8,786 hectares that directly affect the drainage systems of the urban and industrial
zone. These rivers are the Guadalupe, Buhisan, Subang-daku, Lahug, and Pardo
Rivers.
THE PEOPLE
Cebu City’s population of 687,269 (1995 census) makes this premier city of the
south the second biggest metropolis in the country. Its strong attraction for
migrants from the rural areas of Cebu Province as well as the rest of the Visayas
and Mindanao has helped to make it grow at 2.2 percent per annum in the last
decade.
Considering the proliferation of schools in Cebu City, this busy metropolis can boast
of a very high literacy rate of 97 percent. However, more females (3.4 percent) are
illiterate compared to males (2.8 percent).
The Cebuanos have long been known as pioneering entrepreneurs and innovative
businessmen. Largely responsible for the Vigorous growth of Cebu’s economy, they
have initiated myriad small and medium- scale businesses that have generated
precious dollars from the export of furniture, gifts, toys and fashion accessories,
garments, mangoes, dried fruits and seaweed
THE FACILITIES
Cebu City is aptly known as the premier city of the South, being an important
regional center that has set the pace of development for the Visayas and Mindanao.
Since World War II, it has metamorphosed into a locus of education and culture,
attracting students not only from the Visayas but also from Mindanao and Luzon. It
has six universities, nine colleges and several technical and vocational schools that
are able to compete with Manila’s better schools. Its reputable medical colleges
have attracted students and eleven public high schools that provide education for
the youth.
LOCATION
Cebu in Central Visayas is in the center of the Philippines archipelago. It is bounded

on the north by the Visayan Sea, on the east by the Camotes Sea, on the west by
the Tanon Strait, and on the southeast by the Bohol Strait.
Cebu City, with an area 329 sq. km and a population of 610,417, and Mandaue, with
an area 33 sq. km and a population 180, 285 are highly urbanized cities.
THE LAND
Cebu City, the regional capital of Central Visayas, lies at the heart of the Philippine
archipelago, 365 miles south of Manila. Located midway on the East Coast of Cebu
Island, it is bounded on the north by the Municipality of Talisay and on the west by
Toledo City and Balamban.
Cebu City has a total land area of 328.80 square kilometers (32.880 hectares).
Along the coast, the terrain is relatively flat, accounting for 15% of the total area.
This becomes rolling and hilly at elevations of 40 to 200 meters above sea level,
then, turns generally rugged and mountainous at elevations of 200 to 800 meters.
Natural barriers protect the city from rough elements. Along its northwestern rim
lay the mountain ranges of Cebu, while on the opposite side, Mactan Island protects
the city harbor from strong winds. Three rivers in the city- Guadalupe, Lahug and
Kinalumsan – serve as natural flood drains.
The city is politically divided into 80 barangays, which are clustered into two
congressional districts. The North District with 46 barangays and the more densely
populated South District with 34. Although the city is predominantly urban, 1 of its
80 barangays (38%) is located in the uplands.
Pleasant weather generally prevails over metropolitan Cebu. It is seldom visited by

typhoons, being outside the typhoon belt.
Cebuanos are predominantly Catholics. The next biggest religious sects are the
Protestants, Iglesia Ni Cristo, Muslims, Taoists, Buddhists and other smaller
denominations.
Considering the proliferation of schools in Cebu City, this busy metropolis can boast
of a very high literacy rate of 97 percent. However, more females (3.4 percent) are
illiterate compared to males (2.8 percent).
businessmen. Largely responsible for the Vigorous growth of Cebu’s economy, they
have initiated myriad small and medium- scale businesses that have generated
garments, mangoes, dried fruits and seaweed.
AMENITIES
Cebu City is blessed with a relatively moderate climate making it a favorite tourist
destination. For expatriates and prospective investors who may have to stay
therein, Cebu has excellent housing facilities, five-star hotels, casinos, plush
restaurants, big shopping malls, and other amenities including an international
school. One is never more than 45 minutes away from its white sand beaches and
its clear blue waters or from its several world-class golf courses. In short, Cebu
provides a quality of life bound only in a tropical paradise. The Cebu beats with the
dynamism of its people and the vastness of its opportunities.
ECONOMY
businessmen. Largely responsible for the vigorous growth of Cebu’s economy, they
have initiated myriad small and medium-scale business that have generated
garments, mangoes dried fruits and seaweed.
ECONOMIC PROFILE
Outside of Metro manila, the City is considered as one highly urbanized area and
Metropolitan Center with the highest potential for further economic growth.
Trade and commerce lead as the City’s source of livelihood and therefore forms as
its main economic base. It has become the center of the following economic
activities in the region.
a. banking and finance

b. general merchandising
c. manufacturing
d. wholesale and retail establishments
e. other linkages, including transport and communications
INDUSTRIES IN CEBU CITY
1. grain mill products

2. manufacture of bakery products
3. manufacture of food products
4. distilling, rectifying and blending spirits
5. wine industries
6. softdrinks and carbonated water
7. manufacture of cork products
8. manufactured of furniture and fixtures
9. printing, publishing and allied industries
10.manufactured of chemical products
11.processing of copras
12.manufacture of garments
13.manufacture of shell crafts
14.rattan and buri crafts
15.metal crafts
16.food processing
17.electronics manufacturing
18.stone craft
GETTING THERE
There are several flights daily from Manila to Cebu: flying time is one hour. By sea,
Cebu is a 22 hours-sailing time. There are also several international flights direct in
Cebu.
Source: http://www.ngkhai.com/pointcebu/facts/mandaue.htm
http://www.ngkhai.com/pointcebu/facts/lapu.htm
http://www.ngkhai.com/pointcebu/facts/demograph1.htm#PopGrowth
AREA OF DISPERSION
Cookies can be considered one of the favorite snacks of Filipinos. Cookies are
small, flat-baked treat, usually contains fat, flour, eggs and sugar. Variety of flavors
and designs are being produced in the market. People from all ages love cookies.
The company that the proponent will establish involves baking cookies. Since
the company is new to the market, their main focus of dispersion in its first five
years of operation is at Lapu-lapu, Mandaue and Cebu City. The company seeks
best ingredients and best baking procedures to come up with a distinct taste
product. Combining distinct taste and a unique design that can be used as a utensil,
the company has a differential advantage compared to other competitors.
The proponents decide to establish intermediaries in the form of

supermarkets throughout the target cities. These intermediaries have many
customers in which it gives the company a chance to gain customers.
Source: http://en.wikipedia.org/wiki/Cookie
Demand
Demand is the desire to own anything and the ability to pay for it and
willingness to pay. The term demand signifies the ability or the willingness to buy a
particular commodity at a given point of time.
Goodies and Treats Company determine demand as the number of

individuals willing to buy their product (66% of the population according to the
survey conducted). The demand was based on the data collected from National
Statistics Office and considered the population of individual in Lapu-lapu, Mandaue
and Cebu City.
Source: http://en.wikipedia.org/wiki/Demand_(economics)
Computation for
the total demand
per year (1 pack
approx. 50g)
Willing to Rate of Daily Days Total

Populatio buy the Buying consumption Consumption per Demand
Year n product Power (Daily) (50g pack) Year (packs)
39,283,1
2005 261,982 66% 91% 0.6 1.14 365 00
40,809,5
2006 272,162 66% 91% 0.6 1.14 365 48
42,421,6
2007 282,913 66% 91% 0.6 1.14 365 15
44,033,6
2008 293,664 66% 91% 0.6 1.14 365 82
45,731,2
2009 304,985 66% 91% 0.6 1.14 365 19
Demand Computation:
1. Individual population from Cebu, Mandaue and Lapu-lapu City were gathered from the National Statistics
Office.
2. The proponents use Slovins Formula (n=N/1+Ne^2) to obtain the number of samples for the survey.
• Where:
N= total number of Individual Population
e^2= 0.10^2 Margin Error
n= sample size
n= 1,410,869/1+1,410,869(0.10^2)
3. The proponents randomly surveyed and interviewed each individual representatives
4. The survey results were tallied as basis for demand computation
5. 66% of individuals are willing to buy the proponents’ proposed product
6. Total Demand Computation: (Individual Population)*(% of willing to buy the product)*(% Buying Power)*(Daily
rate of consumption)*(Daily Consumption)*(No. of Days per Year)
Projected Demand Using the Four Methods of Projections
Statistical Straight Statistical
Year Past Demand Arithmetic Straight Line Arithmetic Geometric Line Parabolic
2005 39,283,100
2006 40,809,548
2007 42,421,615
2008 44,033,682
2009 45,731,219
2011 47,343,249 47,436,250 49,056,067 49,331,718
2012 48,955,279 49,204,852 50,700,694 51,212,617
2013 50,567,308 51,039,393 52,345,320 53,152,584
2014 52,179,338 52,942,333 53,989,947 55,151,619
2015 53,791,368 54,916,222 55,634,574 57,209,722
Summary on the Standard Deviation on the Four Methods of Projections
Methods Standard Deviation
Arithmetic Straight Line 74,083.71
Arithmetic Geometric 145,728.31

Curve
Statistical Straight Line 74,792.42
Statistical Parabolic 12,904.33

Projected Demand (1 pack approx. 50g)
Year Statistical Parabolic

(packs)
2011
49,331,718
2012
51,212,617
2013
53,152,584
2014
55,151,619
2015
57,209,722
Analysis: The proponents chose the Statistical Parabolic Method in projecting the
demand because it has the lowest standard deviation. There is an increasing trend
of demand over the next five years. The projected values give the proponent a
conclusion that a probable segment of customers are willing to buy the product. The
computed data also shows the consumers’ order behavior which is also constantly
increasing each year as projected. (See appendix for the Methods of Demand
Projection Computations).
Projected Demand Graph
Analysis: The graph shows the projected 5-year demand which illustrates the (4) four methods in computing
projected demand. Among the four methods, Statistical Parabolic Method has the lowest standard deviation.
(See appendix for the Methods of Demand Projections Computations)
Supply
Supply is the total amount of a good or service available for purchase; along
with demand, one of the two key determinants of price. In food manufacturing it
refers to distribution of a product. Researchers should know the other food
manufacturers related to baking cookies or biscuits and other snacks because it
provides a view for its competitors’ market shares and the adequacy of supply.
The proponents got their data for supply from major competitors like Jack and
Jill, Kraft, Monde M.Y. San, Galinco and others. These data serve as basis for the
volume of supply in the market. With the help of these data, the proponents can
determine how much of the demand has not been catered in the market. This will
help determine whether the proponents have a promising market for their product
or a no market at all.
Source: http://www.investorwords.com/4822/supply.html
Past Supply(1 pack
approx. 50g)
Growth
Competitors Rate 2005 2006 2007 2008 2009
Jack and Jill 4% 5,488,020 5,707,541 5,935,842 6,173,276 6,420,207
Kraft 2% 5,275,812 5,381,328 5,488,955 5,598,734 5,710,709
Monde M.Y.
San 6% 4,149,362 4,398,324 4,662,223 4,941,957 5,238,474
Galinco 4% 3,657,307 3,803,599 3,955,743 4,113,973 4,278,532
Total Supply 18,570,501 19,290,792 20,042,764 20,827,940 21,647,922
COMPUTATIONS OF TOTAL SUPPLY INCLUDING OTHER COMPETITORS
Total Supply for the year = (TOTAL SUPPLY OF THE TOP 4 COMPETITORS) / (4/Total No. of Competitors)
Total no. of Competitors = 8
Computation of Total Supply Including other Competitors

Total Supply for the Year(1 pack
Year Total Supply of Top 4 Competitors 4/Total # of Competitors approx. 50g)
2005 18,570,501 0.5 37,141,002
2006 19,290,792 0.5 38,581,584
2007 20,042,764 0.5 40,085,528
2008 20,827,940 0.5 41,655,880
2009 21,647,922 0.5 43,295,844
Analysis:
The data shown above are the number of supply the competitors’ have produced in the market per year. The growth
rates were based on the average percentage growth rate given by the competitors.
Projected Supply Using the Four Methods of Projection
Yea Past Supply (1 pack Arithmetic Arithmetic Statistical

r approx. 50g) Straight Line Geometric Curve Straight Line Statistical Parabolic
200
5 37,141,002
200
6 38,581,584
200
7 40,085,528
200
8 41,655,880
200
9 43,295,844
201
1 44,834,555 44,924,128 46,466,644 46,784,292
201
2 46,373,265 46,613,649 48,039,560 48,629,478
201
3 47,911,976 48,366,710 49,612,476 50,542,732
201
4 49,450,686 50,185,700 51,185,392 52,524,053
201
5 50,989,397 52,073,100 52,758,308 54,573,441
Summary on the Standard Deviation on the Four Methods of Projection
Methods Standard Deviation
Arithmetic Straight Line 96,879.51
Arithmetic Geometric 155,448.82

Curve
Statistical Straight Line 84,913.25

Statistical Parabolic 1,755.99
Projected Supply (1 pack approx. 50g)
Year Statistical Parabolic

(packs)
2011
46,784,292
2012
48,629,478
2013
50,542,732
2014
52,524,053
2015
54,573,441
Analysis: The proponents chose the Statistical Parabolic Method in projecting the
supply because it has the lowest standard deviation. There is an increasing trend of
supply over the next five years. (See appendix for the Methods of Demand
Projection Computations).
Projected Supply Graph
Analysis: The graph shows the projected 5-year supply which illustrates the (4) four methods in computing
projected supply. Among the four methods, Statistical Parabolic Method has the lowest standard deviation.
(See appendix for the Methods of Supply Projections Computations)
Past Demand and Supply
Supply (1 pack
Year Demand (packs) approx. 50g) Gap % Gap
2005 39,283,100 37,141,002 2,142,098 5%
2006 40,809,548 38,581,584 2,227,964 5%
2007 42,421,615 40,085,528 2,336,087 6%
2008 44,033,682 41,655,880 2,377,802 5%
2009 45,731,219 43,295,844 2,435,375 5%
Analysis: As shown in the graph, demand is greater than supply. There is a gap between the demand and
the supply, giving new players like The Goodies and Treats Company a chance to grab a portion of the market
in the Snack Industry (Cookies and Biscuits).
Past Competitors’ Market Share
Past Supply (1 pack Past Demand % Market

Competitors approx. 50g) (packs) Share
Jack and Jill 6,420,207 45,731,219 14%
Kraft 5,710,709 45,731,219 12%
Monde M.Y. San 5,238,474 45,731,219 11%
Galinco 4,278,532 45,731,219 9%
Total Supply for a

Year 43,295,844
Untapped Market 5%
Others 47%
100%
Jack and Jill 14%

Kraft 12%
Monde M.Y. San 11%
Galinco 9%
Untapped Market 5%
Others 47%
Analysis: The data above shows the past market shares of competitors and
the percentage of the untapped market. The untapped market is 5% which
could give new companies like the Goodies and Treats Company a chance to
earn a portion of the market share. The others are composed of Febisco, Ace,
Magic and other bakeries that cater the demand of the market.
Present Market Share
Present Supply (1 pack Present Demand % Market

Competitors approx. 50g) (packs) Share
Jack and Jill 6,677,015 47,520,072 14.05%
Kraft 5,824,923 47,520,072 12.26%
Monde M.Y. San 5,552,782 47,520,072 11.69%
Galinco 4,449,673 47,520,072 9.36%
Goodies and
Treats 1,477,440 47,520,072 3.11%
Total Supply for a
Year 45,008,788
Untapped Market 5.28%
Others 46%
100%
Jack and Jill 14.05%

Kraft 12.26%
Monde M.Y. San 11.69%
Galinco 9.36%
Goodies and Treats 3.11%
Untapped Market 5.28%
Others 44.25%
Analysis: As shown above, the present market share of companies plus the entry
of the Goodies and Treats Company. Goodies and Treats hold 3.11% of the market
share. The proponents plan to increase this market share by stealing market shares
of competitors and catering the untapped market. This can be done through
aggressive marketing strategies and creating differential advantage. The others are
composed of Febisco, Ace, Magic and other bakeries that cater the demand of the
market.
Projected Untapped Market
Projected Demand Projected Supply % of Projected

Year (packs) (packs) Untapped Market
2011 49,331,718 46,784,292 5%
2012 51,212,617 48,629,478 5%
2013 53,152,584 50,542,732 5%
2014 55,151,619 52,524,053 5%
2015 57,209,722 54,573,441 5%
Where:
% of Projected Untapped Market= (Projected Demand-Projected Supply)/ Projected Demand
Analysis:
As shown above, there is a decrease in the percentage of untapped market as years’ progress. This is due to
the constant improvement of aggressive marketing strategies done by companies in order to capture these
untapped markets. Another cause of the decrease of the percentage of the untapped market is the entry of
new companies that adds volume to the supply. This results to a closer gap between demand and supply.
Proposed Strategic Marketing Plan
Company’s strategy is the game plan management using to strive out a

market position, attract and please customer, compete successfully, conduct
operations and achieve organizational objective.
The Strategic marketing plans of the proposed business were in line to its
vision, mission and objective. With a new concept of Edible Spoon and Fork,
capturing a market position serves as a challenge for the business. Strategic
marketing plans play an important role to introduce the service and to
achieve its objective.
Marketing Objectives:
• To make people aware of its business activities
• To attract customers
• To increase the total number of customer served
• To maintain and project the business image
• To encourage customers in patronizing the service
Marketing Strategies and Tactics
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• Unique and functional Product.
With its Spoon and Fork design, it doesn’t only captivate

customers but it can also serve as a utensil. Undergo quality
control tests to obtain the products strength, in order to have a
reliable product if used.
• Attractive Packaging
Package is designed to respond to customer wants and needs

through style and convenience. The material used in the
packaging of the product is aluminum foil. The dimension of the
packaging is 3.5x6x1.5 inches. The color of the packaging is
black so that the colorful logo and product name will stand out
and attract buyers.
• Cost Leadership Strategy
The concept is to produce and market a good quality product or

service at a lower cost than the competitors. Goodies and Treats
Company is not just profit oriented but is also concerned to the
customer’s satisfaction. The company aims to produce a product with
good quality. However, price will be set at the lowest possible value to
attract customers. In determining the price, total production cost will
be included and by comparing the prices of the competitors of the
same product. Price must be set enough to cover all costs yet still
affordable for the customers.
• Differential Strategy- is creating a product or service that is perceived

as being unique throughout the industry. The emphasis can be brand
image, propriety technology, special features, superior service, a
strong distributor network or other aspect that might be specific to
other industry. Some of the addition that should exist to support a
differentiation strategy includes strong marketing abilities, effective
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engineering, creative personnel, the ability to perform basic research
and a good reputation.
Goodies and Treats Company Product Differential Advantages:
o A. The product is unique from other existing products
o B. Has a cheaper cost
o Raw materials are purchased locally
Basing on the following differential advantages of the proposed

product, it is very much obvious that the product has a very good
chance to play in the market share since people tend to buy a good
quality product yet economical and affordable to everyone’s budget.
The proposed product is nutritious and captures the interests of the
health conscious individuals.
• Advertising Strategy- is a campaign developed to communicate idea

about products and services to potential customers in the hopes of
convincing them to buy the products and services. This strategy, when
built in a rational and intelligent manner, will reflect other business
considerations (overall budget, brand recognition efforts) and
objectives(public image enhancement, market share growth) as well.
Goodies and Treats Company has its advertising strategy to promote

awareness of our proposed product. Since we are still to begin our new
firm we chose advertising strategies that can convince the people and
catch their attention yet doesn’t require much money.
o Free taste is one of the best ways on conducting our

promotional activities. This will be done on supermarkets, malls,
and other establishments that people go to buy food
commodities. This would let them be aware of our product, its
taste and contents. Flyers, streamers, and leaflets are also used
to make people recall and be familiar with the company’s
product. Visiting restaurants, hotels, resorts, and schools are
also being considered.
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Distribution Channel
Manufacturer
Retailers
End Consumer
Analysis:
The cycle starts from Goodies and Treats Company. Product is being transferred
from the company to the retailers. Retailers includes: supermarkets, groceries,
department stores, convenience stores and variety stores. Retailers sell the product
to the end consumer.
Source: http://en.wikipedia.org/wiki/Retailing
Marketing Mix
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The Combination of the four primary elements that comprise a company’s
marketing program is termed the marketing mix. The design implementation, and
evaluation of the marketing mix constitute the bulk or a firm’s marketing effort.
The four elements of the marketing mix are:
• Product
Managing the product ingredient includes planning and developing the

right goods and/or services to be marketed by the company. Strategies
are needed for changing existing products, adding new one and taking
other actions that affect the assortment of products carried. Strategic
decisions are also needed regarding branding, packaging and various
other product features.
• Price
Management must determine the right base price for its products. It
must then decide on strategies concerning discounts, freight payments
and many other price related factors.
• Place
Even though marketing intermediaries primarily wholesalers and

retailers are largely a non controllable environmental factor, an
executive has considerable latitude when working with them.
Management’s responsibility is to:
a. Select and manage the trade channels through which the

products will reach the right market at the right time
b. Develop a distribution system for physically handling and

transporting thee products through these channels.
• Promotion
Promotion represents all of the communications that a marketer may

use in the marketplace. Management needs to inform and persuade
the market regarding a company’s products. Advertising, personal
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selling, sales promotion, and publicity are the major promotional
activities.
Source: http://www.quickmba.com/marketing/mix/
Product Life Cycle
The product life cycle goes through multiple phases, involves many
professional disciplines, and requires many skills, tools and processes.
Product life cycle (PLC) has to do with the life of a product in the
market with respect to business/commercial costs and sales measures.
To say that a product has a life cycle is to assert four things:
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• that products have a limited life,
• product sales pass through distinct stages, each posing different
challenges, opportunities, and problems to the seller,
• profits rise and fall at different stages of product life cycle, and
• Products require different marketing, financial, manufacturing,
purchasing, and human resource strategies in each life cycle stage.
There are four stages in a product's life cycle.
Stage Characteristics
1. costs are high
2. slow sales volumes to start
3. little or no competition
1. Introduction 4. demand has to be created
stage 5. customers have to be prompted to try
the product
6. makes no money at this stage

2. Growth stage 1. costs reduced due to economies of
scale
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2. sales volume increases significantly
3. profitability begins to rise
4. public awareness increases
5. competition begins to increase with a
few new players in establishing market
6. increased competition leads to price

decrease
1. costs are lowered as a result of
production
2. volumes increasing and experience
curve effects
3. sales volume peaks and market
saturation is reached
4. increase in competitors entering the
market
3. Maturity stage
5. prices tend to drop due to the
proliferation of competing products
6. brand differentiation and feature
diversification is emphasized to
maintain or increase market share
7. Industrial profits go down

1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, profitability diminish
4. Decline stage
4. profit becomes more a challenge of
production/distribution efficiency than
increased sales
Introduction Stage
In the introduction stage, the firm seeks to build product awareness
and develop a market for the product. This is the point of product
launch, market entry, and user-trial by the innovators. At this stage
sales are slow and difficult, and the manufacture must incur heavy
promotional expenditure to educate the public. The main objective
here is to generate primary demand instead of the selective demand.
Prices may be set high to cream the market before imitators appear, or
set low to determine imitators with skimpy margins.
The impact on the marketing mix is as follows:
• Product branding and quality level is established and intellectual

property protection such as patents and trademarks are obtained.
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• Pricing may be low penetration pricing to build market share rapidly, or
high skim pricing to recover development costs.
• Promotion is aimed at innovators and early adopters. Marketing

communications seek to build product awareness and to educate
potential consumers about the product.
• Place (Distribution) is selective until consumers show acceptance of

the product.
Growth Stage
In this stage, the firm seeks to build brand preference and increase market
share. It is characterized by product sales increasing often at a very rapid
rate. It is also the stage when early entrants begin to realize profits, though
the fact the market is now profitable invariably leads to increased
competition. Finally, it is also the time in which competitors try to actively
position their brand in a way that will separate it from the onslaught of new
entrants.
• Product quality is maintained and additional features and

support services may be added.
• Pricing is maintained as the firm enjoys increasing demand with

little competition.
• Promotion is aimed at a broader audience.
• Place (Distribution) channels are added as demand increases

and customers accept the product.
Maturity Stage
At maturity stage, the strong growth in sales diminishes. Competition
may appear with similar products. At some point in time sales of the
product form slows. Instead of double-digit growth from one period to the
next, the industry limps along with low single digit sales increases or
worse. There are key reasons why this occurs. First, the market has
become saturated with a large majority of potential customers having
already purchased the product. Second, customers have moved on to
purchase other products that are seen as replacements for this product
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form. In this situation, the growth of the product form may have been
interrupted with the introduction of a new product form. The primary
objective in this point is to defend market share while maximizing profit.
• Product features may be enhanced to differentiate the product from

the competitors.
• Pricing may be lower because of the new competition.
• Promotion emphasizes product differentiation.
• Place (Distribution) becomes more intensive and incentives may be

offered to encourage preference over competing products.
Decline Stage
A product form has reached this stage when it becomes clear that market
is no longer able to sustain. Like the Maturity stage, the Decline stage may
last a long time especially for products that have been adopted by a large
percentage of the market who are not inclined to change how they satisfy
their needs. Since the end of the product form is seen as inevitable, there are
no-stages here. As sales decline, the firm has several options:
• Maintain the product, possibly rejuvenating it by adding new features

and finding new uses.
• Harvest the product – reduce costs and continue to offer it, possibly to
a loyal niche segment.
• Discontinue the product, liquidating remaining inventory or selling it to

another firm that is willing to continue the product.
Source: www.quickmba.com
Product Life Cycle Curve
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PRODUCT LIFE Goodies and Treats Company
CYCLE
INTRODUCTORY GROWTH MATURITY DECLINE
PRODUCT Product Product Product Product

branding and Quality is enhancement Modification
Quality Level is maintained
Established plus New products Phase out
additional introduced products that
flavors weakens
PRICE Price Price is Increase of price discounts given

Penetration maintained by 5%
Low- introductory
price
PROMOTION Product Streamers, Product

Awareness mascots and Differentiation
flyers Raffle promo
Product Product and discounts
launching Commercials launching
on radios and
Free tastes of the television ( new products )
product to the
supermarkets, Streamers and
schools, public flyers
markets,
Advertisement
streamers, flyers,
Internet and
newspaper
advertising
PLACE Renting Maximize Expansion or

Existing buy the existing
Space space
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Source: http://www.quickmba.com/marketing/product/lifecycle/
Pricing Scheme of Competitor
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COMPANY NAME PRODUCTS’ PRICE
Jack and Jill ( Pretzel’s 50g) 0.31 ¢PHP per gram (15.50 PHP SRP)
M.Y San ( Eggnog 50g ) 0.33 ¢ PHP per gram (16.25 PHP SRP)
Galinco ( Chips Delight 50g ) 0.43 ¢ PHP per gram (21.50 PHP SRP)
Kraft Nabisco ( Chips Ahoy 50g ) 0.41 ¢ PHP per gram (20.50 PHP SRP)
Goodies and Treats Company 0.28 ¢PHP per gram (14.65 PHP SRP)
(Sporkie 50g)
Note: The 20% addition on the manufacturers’ price is based on the average mark up rate.
Source: http://www.neda.gov.ph/ads/mtpqd/chapters1-6/ch2.htm
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Conclusion:
A promising market is present because of the gap of the demand and the
volume of supply giving new players like the Goodies and Treats Company to
penetrate the market. Though the market share of the company is small, the
marketing strategies and marketing mix formulated by the proponents can
help the company gain a bigger portion in the market by stealing market
shares of competitors or by catering the untapped market.
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CHAPTER II
TECHNICAL ASPECT
Scope of Technical Aspect
• INTRODUCTION
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• EXECUTIVE SUMMARY
• PROJECT SITE
• LOCATION OF BUSINESS HEADQUARTER
• FACTORS EVALUATING LOCATION ANALYSIS
• ALTERNATIVE SITES
• PLANT LAYOUT
• PRODUCTION AREA LAYOUT
• PRODUCT DESCRIPTION
• RAW MATERIALS
• SUPPLIERS OF RAW MATERIALS
• SUMMARY OF MACHINE COST
• MACHINERIES, TOOLS AND EQUIPMENT
• MANPOWER REQUIREMENTS / MACHINE AND HEAD

COUNT
• MANUFACTURING PROCESS
• FLOW PROCESS CHART
• PRODUCTION SCHEDULE
• SAFETY PROGRAMS
• MAINTENANCE PROGRAMS
• QUALITY CONTROL PROGRAM
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• PRODUCTION FACILITIES
• CAPACITY OF THE PRODUCT
• CONCLUSION
INTRODUCTION
The Technical aspect is the discussion of the basic and operation flow
of the project. The technical aspect is one of the essentials of this study
because this factor responds to the technicalities and basic structure of the
proposed study. This includes the list of equipments, materials, structure plan
and also the source of the supplies use in the proposed project for business
plans, promotion strategies, utilities, facilities, layout designs and location.
The technical feasibility assesses the details of how the company will deliver
a product or service (i.e., materials, labors, transportation, where the
business will be located, technology needed, etc.). The technical feasibility
study is the logical or tactical of how the business will produce, store, deliver,
and track its product or services. The technical feasibility study is an
excellent tool for trouble-shooting and long-term planning which serves as a
flow chart of how the products and services evolve and move through the
business to physically reach the market.
This chapter of study discusses the technical feasibility of Goodies and
Treats Company and the inferred probability of the proposed product is
presented. This chapter of study pertains to discuss in detail the composition
of the product, the raw materials needed, the project site or plant location
and its layout, the manufacturing process, plant size, the production volume
and scheduling, the manpower, structure, utilities, waste disposal, the
equipment and machinery and other information deemed necessary in
determining the technical feasibility.
In this study detailed flow charts indicating the manufacturing process
involved and the normal duration of the process are taken into account. The
content of the report shall be based upon verifiable data and contain
sufficient information and data analysis so that a determination may be made
on the technical feasibility of achieving the levels of income or production
that are projected in the financial statements. The report shall also identify
and estimate project operating and development costs and specify the level
of accuracy of these estimates and the assumptions on which these
estimates have been based.
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Source: http://wiki.answers.com/Q/What_is_technical_aspect
MAJOR ASSUMPTIONS:
• Goodies and Treats Company considered the 12 non-working days,
thus the total number of days in a year is 365 days.
• Operation per year = 305 days
(Approximately 365 days/year – 12 non working days) – (48 Sundays in a
year)
= 365 – 12 – 48
= 305 days
• Operation per week is 6 days
• Operation per month is 4 weeks
• Operation per day is 15 hours
• Morning duty hours =(7:00 am to 3:00 afternoon)
• Afternoon duty hours=(3:00 pm to 11 pm)
• The company has 2 shifts per day.

• Both shifts have a 30 minutes break.
• The entire process is machine operated, thus the company only needs a
minimum number of production workers.
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• The data gathered from the internet are used as the basis in computing
the production capacity. Plant capacity will be based on the capacity and
capability of the machine.
• The proponents have a supplier of the raw materials needed.
PROJECT SITE
The geographical location of the final plant can have strong influence
on the success of the industrial venture. Considerable care must be
exercised in selecting the plant site, and many different factors must
be considered. Primarily the plant must be located where the minimum
cost of production and distribution can be obtained but other factors
such as room for expansion and safe living conditions for plant
operation as well as the surrounding community are also important.
The location of the plant can also have a crucial effect on the
profitability of a project. The choice of the final site should first be
based on a complete survey of the advantages and disadvantages of
various geographical areas and ultimately, on the advantages and
disadvantages of the available real estate.
The proponents actually have alternative before deciding to manage at
Consolacion, Cebu city. The preference sites include Alang-Alang Mandaue
and Mactan, Marina Mall, Lapu-Lapu City, which are all part of the target
market.
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Source: http://www.gsn.org/web/webproj/design/prjsite.htm
Location of the Business Headquarters
Goodies and Treats Company is located at A.S Fortuna St. Mandaue City. The
location is near by the National Highway in which it is very accessible to any
land transportation vehicle.
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Source: www.earth.google.com
The various principal factors that must be considered while selecting a

suitable plant site are briefly discussed in this section.
The factors to be considered are:
1. Raw material availability

2. Location (with respect to the marketing area)
3. Availability of suitable land
4. Transport facilities
5. Availability of labors
6. Availability of utilities (Water, Electricity)
7. Environmental impact and effluent disposal
8. Local community considerations
9. Climate
10. Political strategic considerations
11. Taxations and legal restrictions
Discussion of each Factor:
1. Raw Materials Availability:

The source of raw materials is one of the most important factors influencing
the selection of a plant site. This is particularly true for the cane sugar plant
because a large volume of sugar cane is consumed in the process, which will
result in the reduction of the transportation and storage charges. Attention
should be given to the purchased price of the raw materials, distance from
the source of supply, freight and transportation expenses, availability and
reliability of supply, purity of raw materials and storage requirements.
2. Location:
The location of markets or intermediate distribution centers affects the cost
of product distribution and time required for shipping. Proximity to the major
markets is an important consideration in the selection of the plant site,
because the buyer usually finds advantageous to purchase from near-by
sources.
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3. Availability Of Suitable Land:
The characteristics of the land at the proposed plant site should be examined
carefully. The topography of the tract of land structure must be considered,
since either or both may have a pronounced effect on the construction costs.
The cost of the land is important, as well as local building costs and living
conditions. Future changes may make it desirable or necessary to expand the
plant facilities. The land should be ideally flat, well drained and have load-
bearing characteristics. A full site evaluation should be made to determine
the need for piling or other special foundations.
4. Transport:
The transport of materials and products to and from plant will be an
overriding consideration in site selection. If practicable, a site should be
selected so that it is close to at least two major forms of transport: road, rail,
waterway or a seaport. Road transport is being increasingly used, and is
suitable for local distribution from a central warehouse. Rail transport will be
cheaper for the long-distance transport. If possible the plant site should have
access to all three types of transportation. There is usually need for
convenient rail and air transportation facilities between the plant and the
main company head quarters, and the effective transportation facilities for
the plant personnel are necessary.
5. Availability Of Labors:
Labors will be needed for construction of the plant and its operation. Skilled
construction workers will usually be brought in from outside the site, but
there should be an adequate pool of unskilled labors available locally; and
labors suitable for training to operate the plant. Skilled tradesmen will be
needed for plant maintenance. Local trade union customs and restrictive
practices will have to be considered when assessing the availability and
suitability of the labors for recruitment and training.
6. Availability of Utilities:
The word “utilities” is generally used for the ancillary services needed in the
operation of any production process. These services will normally be supplied
from a central facility and includes Water, Fuel and Electricity which are
briefly described as follows:
• Water: - The water is required for large industrial as well as general
purposes, starting with water for cooling, washing and steam generation.
The plant therefore must be located where a dependable water supply is
available namely lakes, rivers, wells, seas. If the water supply shows
seasonal fluctuations, it’s desirable to construct a reservoir or to drill
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several standby wells. The temperature, mineral content, slit and sand
content, bacteriological content, and cost for supply and purification
treatment must also be considered when choosing a water supply. De-
mineralized water, from which all the minerals have been removed, is
used where pure water is needed for the process use, in boiler feed.
Natural and forced draft cooling towers are generally used to provide the
cooling water required on site.
• Electricity: - Power and steam requirements are high in most industrial
plants and fuel is ordinarily required to supply these utilities. Power, fuel
and steam are required for running the various equipments like
generators, motors, turbines, plant lightings and general use and thus are
considered, as one major factor is choice of plant site.
7. Environmental Impact And Effluent Disposal:

Facilities must be provided for the effective disposal of the effluent without
any public nuisance. In choosing a plant site, the permissible tolerance levels
for various effluents should be considered and attention should be given to
potential requirements for additional waste treatment facilities. As all
industrial processes produce waste products, full consideration must be given
to the difficulties and coat of their disposal. The disposal of toxic and harmful
effluents will be covered by local regulations, and the appropriate authorities
must be consulted during the initial site survey to determine the standards
that must be met.
8. Local Community Considerations:

The proposed plant must fit in with and be acceptable to the local
community. Full consideration must be given to the safe location of the plant
so that it does not impose a significant additional risk to the community.
9. Climate:
Adverse climatic conditions at site will increase costs. Extremes of low
temperatures will require the provision of additional insulation and special
heating for equipment and piping. Similarly, excessive humidity and hot
temperatures pose serious problems and must be considered for selecting a
site for the plant. Stronger structures will be needed at locations subject to
high wind loads or earthquakes.
10. Political And Strategic Considerations:
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Capital grants, tax concessions, and other inducements are often given by
governments to direct new investment to preferred locations; such as areas
of high unemployment. The availability of such grants can be the overriding
consideration in site selection.
11. Taxation And Legal Restrictions:

State and local tax rates on property income, unemployment insurance and
similar items vary from one location to another. Similarly, local regulations on
zoning, building codes, nuisance aspects and others facilities can have a
major influence on the final choice of the plant site.
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Source: http://www.gsn.org/web/webproj/design/prjsite.htm
Factors in Evaluating Location Analysis
FACTORS CITED ISSUES

1. Proximity to the market The target market of the company is
the people of the three cities namely:
Cebu City, Mandaue City and Lapu-
Lapu City which makes a good reason
why it is beneficial to locate the
company near them.
2. Proximity to the necessary Direct and indirect materials were
materials being purchased within the country
3. Availability of the transported The proposed site is in contiguity to
facilities maintain road, making it accessible
for both public and private vehicles.
4. Adequacy of private and public Other services such as power, water,
services fuel, and gas also exist in the area to
support production and service.
5. Climatic conditions The tropical climate of the country is
a good incentive for the
manufacturing.
Source: www3.interscience.wiley.com/journal/119556147
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ALTERNATIVES SITES
Our target market is in the three cities namely: Lapu-Lapu City, Mandaue City
and Cebu City. Considering the factors in locating the plant we comparatively
analyze the chosen sites. The first location is in (A) A.S. Fortuna St. Mandaue
City(1). The second alternative is in (B) Mactan Marina Mall, Lapu-Lapu City
beside Save More (2). And the third one is in (C) Alang-Alang, Mandaue.
Weighted mean of the Alternative sites
SCORES (OUT OF Weighted

FACTORS WEIGHT 100)
A B C A B C
Safety 20%
and Security 85 83 80 17% 16.6% 16%
Parking Lot 5% 83 82 81 4.15% 4.1% 4.05
%
Rental Fee 15% 84 83 82 12.6% 12.5% 12.3
%
Proximity to 20% 85 82 88 17% 16.4% 17.6
its areas for %
service
delivery
Proximity to 10% 87 86 85 8.7% 8.6% 8.5%
its supplier
Office Space 30% 89 86 85 26.7% 25.8% 25.5

area %
TOTAL 100 513 502 501 86.15% 84% 83.9
% 5%
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PLANT LAYOUT
Is the physical arrangement of equipment and facilities within a plant. The

Plant Layout can be indicated on a floor plan showing the distances
between different features of the plant. Optimizing the Layout of a Plant can
improve productivity, safety and quality of Products. Unnecessary efforts of
materials handling can be avoided when the Plant Layout is optimized.
This is valid for:

- Distances Material has to move
- Distances Equipment has to move
- Distances Operators have to move
- Types of Handling Equipment needed
- Energy required to move items against resistance (i.e. gravity)
After the flow process diagrams are completed and before detailed piping,
structural and electrical design can begin, the layout of process units in a
plant and the equipment within these process unit must be planned. This
layout can play an important part in determining construction and
manufacturing costs, and thus must be planned carefully with attention being
given to future problems that may arise. Thus the economic construction and
efficient operation of a process unit will depend on how well the plant and
equipment specified on the process flow sheet is laid out. The principal
factors that are considered are listed below:
1. Economic considerations: construction and operating costs

2. Process requirements
3. Convenience of operation
4. Convenience of maintenance
5. Health and Safety considerations
6. Future plant expansion
7. Modular construction
8. Waste disposal requirements
Source: http://www.hse.gov.uk/comah/sragtech/techmeasplantlay.htm
Costs:
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Adopting a layout that gives the shortest run of connecting pipe between
equipment, and least amount of structural steel work can minimize the coat
of construction. However, this will not necessarily be the best arrangement
for operation and maintenance.
Process Requirements:
An example of the need to take into account process consideration is the

need to elevate the base of columns to provide the necessary net positive
suction head to a pump.
Convenience of Operation:
Equipment that needs to have frequent attention should be located

convenient to the control room. Valves, sample points, and instruments
should be located at convenient positions and heights. Sufficient working
space and headroom must be provided to allow easy access to equipment.
Convenience of Maintenance:
Heat exchangers need to be sited so that the tube bundles can be easily
withdrawn for cleaning and tube replacement. Vessels that require frequent
replacement of catalyst or packing should be located on the out side of
buildings. Equipment that requires dismantling for maintenance, such as
compressors and large pumps, should be places under cover.
Health and Safety Considerations:
Blast walls may be needed to isolate potentially hazardous equipment, and

confine the effects of an explosion. At least two escape routes for operators
must be provided from each level in process buildings.
Future Plant Expansion:
Equipment should be located so that it can be conveniently tied in with any

future expansion of the process. Space should be left on pipe alleys for future
needs, and service pipes over-sized to allow for future requirements.
Modular Construction:
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In recent years there has been a move to assemble sections of plant at the
plant manufacturer’s site. These modules will include the equipment,
structural steel, piping and instrumentation. The modules are then
transported to the plant site, by road or sea.
The advantages of modular construction are:
1. Improved quality control

2. Reduced construction cost
3. Less need for skilled labors on site
The disadvantages of modular construction are:
1. Higher design costs & more structural steel work

2. More flanged constructions & possible problems with assembly, on site
General consideration:
Open, structural work, building are normally used for process

equipment; closed buildings are only used for process operations that
require protection from the weather.
The ideal procedure for any plant is to build the layout around the
production process and then design the building around the layout,
thus achieving the plant that is completely functional. Plant layout
embraces the physical layout of production facilities. Good plant layout
provides regular movement of production, absence of bottleneck
operations, and minimized backtracking all combine to shorten the
manufacturing cycle and reduce the amount of material in process and
also, the flow of people arrangements of employee facilities, aisles,
plant entrances, and parking areas
Source: http://www.hse.gov.uk/comah/sragtech/techmeasplantlay.htm
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Goodies and Treats Plant Layout
Height of layout= 3 meters
Storage Room Capacity (Volume) = 13.08 cu.m (2m X 2.18m X 3m)
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Production Area Layout
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PRODUCT DESCRIPTION
A product description is a structured format of presenting

information about a project product. Product description is usually created by
the project manager and approved by the project board. A product is
anything that can be offered to a market that might satisfy a want or need.
In this section a detail description of the proposed project is discussed in

forms of its physical attributes, and its various uses.
1.) Physical Attributes
The proposed product has a brown color with a unique design. It’s often solid
in individual packs. Below is a table showing physical attributes of the
proposed product.
Phrase Solid
Color brown
shape Combination of spoon and fork design
Weight 50 grams
Source: (http://en.wikipedia.org/wiki/Product_description)
The Product
Product logo:
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Packaging
Singles Pack
Dimensions:
L= 3.5’’
W= 6’’
H= 1.5’’
Quantity = 6 sporkies
Packaging Cost = Php1.25
Jumbo Pack
Dimensions:
L= 11’’
W= 12.5’’
H=3.5 ’’
Quantity = 12 Singles Pack
Packaging Cost= Php1.75
Deluxe
Dimensions:
L= 33.5’’ or 2.79’ or 0.85m
W= 25.5’’ or 2.13’ or 0.65m
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H= 11’’ or 0.92’ or 0.28m
V= 5.47cu. Ft or 0.15 cu. m
Quantity= 18 Jumbo Pack
Packaging Cost =
Php50.00
Note:
Packaging for Singles and Jumbo Pack is outsourced from Ink Reprint
C/o Noel Arong 09212070079
Packaging for Deluxe is outsourced from Checha Marketing
Product Mold
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This is our representation of the product mold of Goodies and Treats
Company in which the size of a spork is 3’’x 1’’. The over all mold size is 1 m
x 1m which can occupy 200 slots for the sporkie mixture.
Dimensions of Mold Tray:
L= 1 meter; W= 1 meter; D= 2.54 cm / 0.0254 meter
Capacity: 200 pieces
RAW MATERIALS
Raw describes material that is in its natural unprocessed form, or has not
had the final stages of processing. A raw material is something that is acted
upon or used by or by human labor or industry, for use as a building material
to create some product or structure.] Often the term is used to denote
material that came from nature and is in an unprocessed or minimally
processed state. (http://en.wikipedia.org/wiki/Raw_material).
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Description of Raw Materials
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Raw Description
Materia
ls
Lard Lard is one of the few edible oils with a relatively high smoke point,
attributable to its high saturated fatty acids content. Pure lard is
especially useful for cooking since it produces little smoke when heated
and has a distinct taste when combined with other foods. Many chefs
and bakers deem lard a superior cooking fat over shortening because of
lard's range of applications and taste
Pork Lard Substitute (PLS) – is a specialty fat resembling the qualities of

pork lard but practically free of cholesterol because of its vegetable
origin. This is a premium lubricant in pastry crusts, soda crackers and
other types of biscuits.
All All-purpose is a type of flour that is suitable for all kinds of recipes. Also
purpose known as “plain,” “general purpose” or “family” flour, this kitchen
Flour cupboard staple is the main ingredient in our favorite baked goods such
as cakes, cookies, breads and rolls.
Eggs An egg is a spheroid or ovoid shaped cell laid by females of many

different species, including birds, reptiles, amphibians, and fish. Eggs
have been eaten by mankind for millennia. Bird eggs (including chicken
and turkey eggs) consist of a protective eggshell, albumen (egg white),
and vittles (egg yolk), contained within various thin membranes. Egg
yolks and whole eggs are a good source of protein and choline..
Sugar Sugar is an informal term for a class of edible crystalline
carbohydrates, mainly sucrose, lactose, and fructose[1] characterized by
a sweet flavor. In food, sugar almost exclusively refers to sucrose, which
primarily comes from sugar cane and sugar beet.
Vanilla Vanilla flavoring in food may be achieved by adding vanilla extract or by

cooking vanilla pods in the liquid preparation. In this case, the pods'
seeds are mixed into the preparation. Natural vanilla gives a brown or
yellow color to preparations, depending on the concentration. Good
quality vanilla has a strong aromatic flavor, but food with small amounts
of low quality vanilla or artificial vanilla-like flavorings are far more
common, since true vanilla is much more expensive.
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Oil Oil is used during brushing process in which it is spread out to the pan
for preparation of baking so that it will be easy to remove baked
cookies.
S
Source: http://en.wikipedia.org/wiki/Lard ; http://en.wikipedia.org/wiki/Sugar;

http://en.wikipedia.org/wiki/Egg_(food); http://en.wikipedia.org/wiki/Vanilla
SUPPLIERS OF RAW MATERIAL
The proponents looked for the main raw materials that can readily and
steadily supply the maximum ordered quantity to be used directly in
production which are of good quality and condition. We consider them to
order in bulk depending on the production capacity. All raw materials are
bought locally.
RAW MATERIAL SUPPLIER ADDRESS
LARD Ong King Kee Carbon Market, Cebu city
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ALL PURPOSE FLOUR General Milling Corporation Lapu-lapu, City
(+63917) 8208101
EGGS Tipolo Mandaue City
Robina Farm +632 395-1169
SUGAR
Mandaue City
Makro
(032)345-9540
VANILLA Makro Mandaue City
(032)345-9540
OIL Makro Mandaue City
(032)345-9540
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1.) MACHINERIES, Description
TOOLS AND
EQUIPMENT
Mixing Machine • The Mixer is suitable for making mixing
• And has a capacity of 6 to 8 liters.
• Adjustable speed in Fast, Medium or
Slow speed. Reasonable rotating speed.
• Uniform Stirring
• .5 kw and weighs 83 kgs.

• ¼ hp
• Size: 0.56 x 0.56 x 0.83m
Chilling Machine • This 10 cubic foot NSF Listed

• Commercial chest freezer is perfect for
storage of bulk food items.
• 1/3 hp
• Exterior dimensions are 42 1/8”W x 24”D x

36 3/8”H (1.07 x 0.61 x 0.92m)
Portable Sealing Usage: It is suitable to pack loose, non-sticky

machine powder and granular materials in the fields of
pharmacy, food industry, agricultural chemical
and daily chemical. Such as pellet, monosodium
glutamate, sugar, oatmeal, soup stuff, seeds,
coffee, cold instant drink etc.
Main technological parameter:
• Filling Capacity: 1-280 ml

• Electrical source: three phase four wire
380V ,50HZ
• Total power: 4.5 W f
• Net Weight: 650 kg

Grinding Machine Specifications:
Source:(http://xindagroup.en.alibaba.com/; (http://chinashoemachine.en.alibaba.com/aboutus.html)
(http://www.alibaba.com/product- gs/203363730/High_Effective_and_Universal_Grinder_grinding.html)
MANPOWER REQUIREMENTS / MACHINE AND HEAD COUNT
Even if machineries used in the production are automated, manpower

requirements are necessary to operate or to control them. This part will
identify the number of workers involve in the creation of product within the
production. Before operation will start, raw materials will undergo first a test
and evaluation for quality assurance purposes.
Machine No. of workers No. of machine to

required operate
Oven machine 1 2
Mixing Machine 1 4
Chilling Machine 0 1
Sealing Machine 1 1
Grinding Machine 1 1
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2.) Other Tools and Equipment
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Tools Description
Mold A mold is pattern for a product to

be made. It serves as a prototype
for a product.
Air condition Aim to provide a suitable

environment for a process being
carried out, regardless of internal
heat and humidity loads and
external weather conditions.
Although often in the comfort
range, it is the needs of the
process that determine
conditions, not human
preference.
Fire Extinguisher Fire extinguisher is an active fire

protection device used to
extinguish or control small fires,
often in emergency situations. It
is not intended for use on an out-
of-control fire, such as one which
has reached the ceiling,
endangers the user or otherwise
requires the expertise of a fire
department.
Rubber Spatula A rubber spatula is a cooking tool

that has a rubber head. The
handle may be made of plastic,
metal, or wood. It is common for
these spatulas to be used when
cooking with pots and pans that
are easily scratched by metal
utensils.
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3.Personal Protective Equipment
Equipment Description
Apron Apron is used in a food entity to consider the

cleanliness of the workers in making the product.
Apron helps to provide orderliness of the worker.
Hand Gloves Gloves protect and comfort hands against cold or heat,
damage by friction, abrasion or chemicals, and disease; or in
turn to provide a guard for what a bare hand should not touch.
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Hairnet A hairnet, or sometimes simply a net or caul, is a
small, often elasticized, fine net worn over long
hair to hold it in place. It is often worn by food
service workers to prevent hair from
contaminating the food.
Mask Mask is required to be worn regularly during

mixing to avoid sneezing.
To protect from dust of the flour and other dust

ingredients that create dust
Source: http://en.wikipedia.org/wiki/Apron
http://en.wikipedia.org/wiki/hairnet
http://en.wikipedia.org/wiki/mask
http://en.wikipedia.org/wiki/Glove#Mittens
4.) Material Handling and Delivery truck
Tools and Equipment Description
Pushcart
Used to carry the materials from one

place to another
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Delivery truck
The delivery truck is used to transport

or deliver products to the distributors
and other intermediaries.
Source: http://en.wikipedia.org/wiki/pushcart
http://en.wikipedia.org/wiki/deliverytruck
5.) FURNITURES AND FIXTURES
Name Description
Steel Table It refers to the table used in the food
processing. Since the company is
producing perishable products it will be
difficult for the workers to clean it.
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Exhaust Fan It is a type of fan installed in a ceiling of
a building or a room; it is technically
designed to suck out the hot air.
Utility Cabinet It is rectangular shaped furniture

usually attached into a wall that is used
for storage of miscellaneous items.
Lockers It is a storage compartment used to

store personal materials or belongings
to the employee.
Sink Is a bowl-shaped fixture that is used for

washing hands or small objects.
Mirror Used as to reflect the image that is

being exposed to it. Mirrors are
commonly used for personal grooming
(in which case the old-fashioned term
"looking-glass" can be used),
decoration, and architecture.
Medicine Cabinet Usually made from wood but now it is

made by synthetic. This is used to store
all the medicines and others.
Office Table Office tables are designed to be used by

the office employees.
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Office Chairs
This is used also for office employees.
Computer Tables
Where the computers are placed.
Used to store important files, such as

Filing Cabinet the appraisal forms and many other
important files.
Monobloc Chairs
Are used by the workers in the
production area.
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Source: http://en.wikipedia.org/wiki/office equipment
6.) Storage:
Glass storage bin
Four removable dividers provide adjustable compartments in this angled

front acrylic bin display. The 24" wide display is made of 1/8" thick acrylic,
and the 30" wide section is 3/16" acrylic. Measurements are: Compartment
size" x H" x W" x D" (0.61x0.76xm)
Storage Racks
It is where trays are placed for cooling and is also

used in the storage area to store boxes of finished
products. Dimension: (0.9mx 4.5mx 3m for storage
area); (0.6x1.8x3m for cooling area).
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Source:http://www.fixturesgroup.com/content.php?
parent=slatwall_acrylic_trays&type=products&parent_menu_name=Slatwall%20Acrylic%20Display
%20Trays&title=Divided%20Acrylic%20Bin%20Display&product_id=703
7.) Measuring Apparatus
Measuring Cups
Measuring Cup – used for measuring ingredients
1/4 Cup, 1/3 Cup, 1/2 Cup, 2/3 Cup, 3/4 Cup, and 1 Cup.
Measuring Spoon
1/4 tsp. (1.25ml), 1/2 tsp. (2.5ml), 1 tsp. (5.0 ml), 1 Tbsp. (15.0 ml)
Measuring Equipments
These equipments are used by the company’s

chemist in order to formulate the right measure of
ingredients to come up with a quality product
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Source: http://www.homebrewunderground.com/equipment/
http://www.etsy.com/listing/46618123/vintage-tupperware-measuring-cups-set-of
http://barsupplies.com/measuring-spoons-p-549.html?osCsid=h6ggmmhmh1l4mfo97vm450sm32
http://www.hotplates.com/Kaiser-Bakeware-660554-KSR1388.htm
Manufacturing Process
Manufacturing processes are those that refer to the making of products by hand
or with machinery. Manufacturing processes use machines, tools and labor to
make things for use or sale. The term may refer to a range of human activity,
from handicraft to high tech, but is most commonly applied to industrial
production, in which raw materials are transformed into finished goods on a
large scale. Such finished goods may be used for manufacturing other, more
complex products, such as household appliances or automobiles, or sold to
wholesalers, who in turn sell them to retailers, who then sell them to end users -
the "consumers".
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Source: http://www.businessdictionary.com
The Process for Making Sporkie
Ingredients (1 bowl mixture):
½ Cup Lard
1 Cup Sugar
2 Eggs
2 Cups All-purpose flour
1 tsp. Vanilla
Process:
1. Preparation of raw materials.
2. Pour Lard to mixing bowl.
3. Add sugar and eggs to the mixing bowl.
4. Mix ingredients for 10 minutes using the mixer.
5. Add All-purpose flour to the mixture and continue mixing for another 5
minutes.
6. Add vanilla to the mixture and continue mixing for another 5 minutes.
7. Brush oil on the molding pan.
8. Pour mixture to molding pan.
9. Place molding pan to the oven.
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10.Bake for 15 minutes.
11.Remove the pan from the oven, transport to cooling area and let it cool
for 10 minutes.
12.Remove cookies from pan.
13.Random sampling on the baked cookies will be done by quality control

inspector.
14.Place the passed batch of cookies into the plastic trays.
15.Cover the plastic trays with plastic then seal.
16.Inspection will again be done on the packaging.
17.The passed products are placed into boxes; brought to the finished-
goods inventory and are ready for delivery.
Note: 1 bowl mixture can fill all 200 slots of one tray
Detailed Description of Manufacturing Process
Steps in making Sporkie
1. Preparation of the raw materials
All ingredients that are needed in the operation for making the product are
prepared.
2. Mixing Ingredients
The different ingredients are mixed forming a mixture.
3. Brushing
After mixing, the oil is brush to the pan in order for the product not to stick to
the mold.
4. Pouring
The mixture of the ingredients is poured into the molding pan.
5. Baking
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Baking starts after the pouring of mix ingredients in the mold pan. The
Product is bake within 15 minutes at a normal baking temperature.
6. Cooling
The bake cookies are cooled within 10 minutes.
7. Testing
The batches of cookies are tested into the testing area before it will undergo
to a final inspection and sealed.
8. Inspection
The Cookies are again inspected for quality assurance; it is manually done.
9. Packaging: The finish product (cookies) is packed into single packs,

sealed, and covered with a unique packaging design, before it will store
and deliver to the distributor.
PROCESS FLOW CHART

PROCESS IN MAKING SPORKIE
Preparation of Raw
materials
Mixing
Brushing
Pouring
Baking
Removing
&Transporting
Cooling
Grinding
Removing
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Yes
No
Testing
No
Packaging
Inspection
Yes
Storage/ Delivery
Analysis: Shown above are the sequences of processes in making

Sporkies. There are 12 operations and 2 inspections with corresponding
actions for decisions made.
PRODUCTION SCHEDULE
Assumptions
The Goodies and Treats Company considered holidays and special holidays as
non-working. The following assumptions are replicated below.
 Proponents assume that preparation of raw materials within 5 min.
 There are approximately 365 days per year
 There will be a six (6) working days in a week
 According to Executive Order No. 203, which states that there are six (10)
regular holidays which the proponents adopted:
 According also to Executive No. 203, there are two (2) special holidays
that is observed in the country which the proponent is based:
Regular Holidays
Regular Holidays Date
New Year’s day January 1
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Maunday Thursday Movable
Good Friday Movable
Araw ng Kagitingan April 9
Labor Day May 1
Independence Day June 12
National Heroes Day Last Sunday of August
Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30
Special Holidays
Special Holidays Date
All Saint’s Day November 1
All souls Day November 2
• Operation per year = 311 days
(Approximately 365 days/year – 12 non working days) – (48 Sundays in
a year)
= 365 – 12 – 48
= 305 days
o Operation per week is 6 days
o Operation per month is 4 weeks
o Operation per day (M-F = 15 hours)(SAT= 10.5 hours)
o Morning duty hours =(7:00 am to 3:00 afternoon)
o Afternoon duty hours=(3:00 pm to 11 pm)
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SUMMARY OF OPERATIONS
GOODIES AND TREATS 311 DAYS PER YEAR
OPERATION PER YEAR
OPERATION PER DAYS 7.5 HOURS
OPERATION PER WEEK 6 DAYS
OPERATION PER MONTH 4 WEEKS
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Source: http://www.lawphil.net/executive/execord/eo1987/eo_203_1987.html
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Time Consumption of Operation
PRODUCTION
SCHEDULE (in sec,& minutes)
(For Sporkie
Making)
Processes
Preparation of raw 5
materials min
Mixing all 20
ingredients min
Brushing oil in the 20

pan sec
Pouring the mixture 5

in a molding pan min
Baking the cookies 15mi

n
Removing of pan 1
from oven and min
transporting to
cooling area
Cooling the cookies 10

min
Removing the 1
baked cookies from min
f
pan
Testing cookies 3
min
Packaging and 5
storing mi
n
Inspection of 5
cookies mi
n
LEGEND: Color Coding of processes
5 min 20 min 20 sec 5 min 15 min

5min
1min 1 min 10 min 3 min 5 min
5 min
TOTAL COMPLETION TIME: 1 hr. and 20 sec.
Analysis:
The production schedule above describes the different processes or operations involved in the entire
manufacturing processes of a certain lines of the product, its start from the preparation of the raw materials
up to the finished products that are ready for distribution. It is also shown there the estimated time to
complete every process in producing the product. It takes an estimated time to complete the cycle at 1 hr.
and 20 sec., time completion of our proposed product. We consider a 5 min. preparation of the raw materials
from storage area going to the production area.
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FLOW PROCESS CHART OF GOODIES AND TREATS COMPANY
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PROCESS TIME DESCRIPTION CHART SYMBOL
Preparati 5 Preparing all

on of raw min. the raw
materials materials
needed in the
production.
Mixing all 20 Mixing the

ingredient min. ingredient
s necessary for
the operation
Brushing 20 Brushing oil to

sec. the pan
Pouring 5 Pouring the

min. mixture in a
molding pan
Baking 15 Baking
the min. cookies in the
cookies oven
Removing 1 Removing the

and min. baked cookies
transporti while
ng transporting
in cooling area
Cooling 10 Transporting
the min. cookies while
cookieS cooling
Removing 1 Remove the

the pan min. baked cookies
Testing 3 Batched
cookies min. cookies are
being tested
by inspector
Packaging 5 Packaging of
and min. finished goods
Storage
Inspectio 5 Final
n of min. inspection
cookies
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Summary of Flow Process Chart:
Process Summary of Activities Time
OPERATION 9 54 min 20 sec
OPERATION WHILE 1 1min

TRANSPORTATION
INSPECTION 1 5 min
DELAY 0 0
STORAGE 0 0
TOTAL 11 1 hr. 20 sec
Analysis:
This flow process chart shows the sequence of processes intended

with its corresponding time consumed in order to finish the
operation. The summary of the flow process indicates the different
activities with its corresponding time. The total activities involve in
the process is 11 and the total process time allocated to finish a
product is 1 hr. 20 sec.
INVENTORY AND PROCUREMENT SCHEDULE
Vanilla Extract
Lard
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On the first procurement, stock M T W TH F SAT
11.28L
Daily Consumption 1.88 1.8 1.8 1.88 1.8 1.88

8 8 8
Remaining Stock 5.64
2nd procurement 5.64
Remaining Stock (2nd week) 3.76
3rd procurement 5.64
4th procurement 5.64
On the 1st procurement, stock M T W TH F SAT

56.52kg

6

6

4

6

6
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Eggs

2,262pcs
Daily Consumption 377 377 377 377 377 377
Remaining Stock 1,13

1
2nd procurement 1,13

1
Remaining Stock (2nd week) 754
3rd procurement 1,13

1
4th procurement 1,13

1
Flour
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FIFO (First in First out) Method is used by the company to manage its raw
material inventory because the raw materials (ingredients) should not be
stored for a long period of time because the production of the company’s
product requires fresh ingredients.
SAFETY PROGRAMS

112.98kg

3 3 3 3 3 3

9

9

6

9

9
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Management should watch closely the number of minor injuries because an
increase in that number means an increase in the injurious contacts
employees are having with objects in their environment. Naturally, as the
number of injuries increase, the probability of the injuries becoming more
serious increases too. It should be prevented.
Goodies and Treats Company sets its own standards regarding safety
practices. The workers must be aware about safety procedures of the
company and the uses of the safety equipment through undergoing training
before they begin to work as regular employees.
All workers are provided with the safety protective equipment particularly
hand gloves, first aid kit for emergency use in case of accidents and
appropriate inspection of work place ventilation and illumination in the work
area.
A safety manual that covers all procedures all the safety procedures, the
rules and regulations in the company are provided and it is strictly
implemented. In cases of serious physical harm, it should be reported to the
supervisor for immediate care and investigation of accidents.
It should have accident investigation in order to discover the point of failure
or practices so that proper action can be taken to prevent recurrence.
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Location of Fire Extinguishers and Direction to Fire Exits
Fire Extinguisher Placement Requirements
You have probably noticed fire extinguishers in places where you shop, work
or eat, but not thought too much about them. It might surprise you to know
that Occupational Safety and Health Administration (OSHA) has certain
regulations that determine what type of fire extinguishers a business must
have, as well as requirements for their placement or travel distance from a
potential fire source.
Class A
The Class A fire extinguisher is perhaps one of the more common fire
extinguishers found in the workplace. Used for fires involving items made of
wood, paper, plastic or textiles, the Class A is recognized by the letter "A"
inside a triangle on the extinguisher, and if the symbol is in color, the triangle
will be green. It uses a combination of dry chemicals to extinguish fires. The
Class A fire extinguisher placement requirement is 75 feet or less.
Class B
The Class B fire extinguisher is commonly found in places where oil,
gasoline or flammable liquids may be located. A Class B is identified by a
square symbol containing the letter "B," and if in color, this square will be
red. The Class B puts out fires by using a process that keeps the fire from
getting oxygen and stops the release of combustible vapors that may feed
the fire. The Class B fire extinguisher placement requirement is 50 feet or
less.
Class C
The Class C fire extinguisher is used in places where there is the possibility
of a live electrical equipment fire. The Class C contains agents that are not
conductive to electricity and is used to de-energize the electrical component.
Once this is accomplished, a Class A or Class B fire extinguisher is then used
to control the rest of the fire. The Class C is identified by a circle with the
letter "C" inside. If in color, the circle will be blue. The Class C fire
extinguisher is placed in conjunction with whatever the other Class A or Class
B fire extinguisher placements are for that particular area.
Class D
The Class D is a more specialized type of fire extinguisher. Used for putting
out fires involving combustible metals, such as sodium, magnesium and
titanium, the Class D uses an agent that does not react with these types of
metals. The Class D is identified by a five-point star with the letter "D" inside.
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If the star is in color, it will be yellow. The Class D fire extinguisher placement
is 75 feet or less.
Class K
Class K is a fire extinguisher used to put out oil and grease fires that can
occur in establishments that do commercial cooking. Class K contains an
alkaline mixture with a potassium agent that when combined with the fatty
acid of oil or grease creates soapy foam. This mixture traps the vapor and
steam and smothers the fire. Class K is identified by the letter "K." There is no
specified placement for a Class K fire extinguisher, but it is usually
recommended that it be located near where possible fires could ignite. Local
governments, however, may have their own set of fire codes, so it is
advisable to find out about any type of building regulations by talking to the
local fire marshal.
Analysis:
Basing from the fire extinguisher placement requirements, Goodies and

Treats Company belongs to the Class K category according to the OSHA
standards.
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MAINTENANCE PROGRAMS
The company provides a regular maintenance on the plant. The equipments
that the company acquired should be checked once a month to ensure the
conditions and anticipate the breakdowns that may result to costly delays
and might interrupt production operation.
Workers are required to take good care of their equipments and tools to
prevent damages and accidents. Tools must be kept clean after using.
Equipments must be checked before and after using.
The production in-charge should closely monitor all the machines in order to
prevent interruptions.
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QUALITY CONTROL PROGRAM
 The purpose of quality control program is to ensure that the product
produced is of good quality.
 Quality inspection of the product is administered after the mixing process.
The inspector checks the viscosity by visual inspection. After the
packaging operation the products will be weighed and checked whether it
conforms to the standard weight. Non conformities will serve as rejects
and will be transported back to the mixing machine if it needs enough
flour to be added to the patty.
 The company will ensure that the quality of the product it produces is built
which means that every personnel must be responsible enough in
maintaining the good quality of the products by inspecting the quality of
the raw materials used.
 Checking of the equipment used if it is capable of producing quality
product and ensuring that all members know the expected work quality
and are always qualified to achieve them.
ATTRIBUTE ACCEPT REJECT
1. Texture Smooth rough, coarse
2. Size/Shape 3’’X 1’’ (maximum Greater or lesser from

allowance of 0.5”), the accepted, broken,
Spork shape cracked
3. Strength Can withstand 4kg load Can not withstand 4kg

load
4. Taste Sweet, delicious, tasty Salty, Sour, Bitter, awful

and crunchy taste
5. Packaging Without damages Damaged (torn,

scratched, not well
sealed, etc.)
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STANDARD PROCEDURE FOR TESTING THE STRENGTH OF THE PRODUCT
1. Place the spoon on the center so that the two blocks would support the
spoon.
2. Hang or suspend masses (force of breaking point) on the center of the

spoon.
3. If spork will sustain for 10 seconds, it is a pass.
4. If spork breaks, it is a fail
m=500g = .5kg g=9.81 m/s^2 F=mg

F=4kg*9.81m/s^2
F=39.24Newton = 40Newton (force produced in strength quality control test)
Note: Breaking an egg shell requires 30 Newton of force
With the given fact, a force of 40 Newton can be applied in order to test the
strength of the product. The proponents are only after of the minimum
strength. In handling spoon and fork, lateral pinch is used. In lateral pinch,
thumb opposes the side of the index finger. It produces a maximal strength
of 9.0 kg and minimal strength of 4.0 kg.
Source: http://www.thepoultrysite.com/articles/979/maintaining-egg-shell-quality;
Source: http://www.rehab.research.va.gov/jour/70/7/2/swanson.pdf; Niebel, Methods, Standards, and Work

design -11th ed. p. 214
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PRODUCTION FACILITIES
The employees are provided all the comfort that the company has to offer.
There are appropriate ventilations, enough lighting, comfort rooms, locker
room. Ergonomically designed working tables and lockers for the employees
are purposely installed.
The production area has a sufficient lighting and good ventilation. The noise
level of the factory in the production area is in tolerable limit. The production
area is absolutely a no smoking zone because the company manufactures
food.
Along with this several factors, should also be given quite considerations such
as the vibration of the operating machines, noise caused during machine
operations, heat factor and the like. If properly, implemented, disruption of
work can be possibly minimized and can be further eliminated.
The storage area will be having the usual room temperature, materials are
intended to stay 1 week in the storage area it is because the production has
1 week inventory prior to the production.
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Capacity Computation
1st Process 2nd Process 3rd Process
Time No. of No. of No. of

output output output
7:00am 0 0 0
7:05am 1 0 0
7:25am 4 1 0
7:45am 4 4 1
8:05am 4 4 4
8:25am 4 4 4
8:45am 4 4 4
11:00pm 4 4 4
Where;
• Production hour = (M-F=7.5 hrs.)(SAT. =5.25hrs.)
• No. of Shifts = 2 shifts
• Total production hours = (M-F 15 hrs.)(SAT. =10.5hrs.)
• 1,600 baked cookie for every 20 minutes
• Oven can occupy 2 trays
• Trays have 200 slots
• 1 pack contains 6 cookies
1 2 3
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5 min 20 min
20min
X 4 machine 2
oven = 4 trays
4traysx200slots=800
cookies/20mins
• 1st process = 5 min; 2nd process = 20 min
• 12 Batches of cookies produce per hour
• 36,000 cookies produce in 1 working day or 6,000 packs of Sporkies

are produced in a day (100% Efficiency Level)
• The company assumes a 90% efficiency level during its first year of
operation because the company adapts a semi-automated process
thus, producing 5,400 packs of Sporkies are produced in a day from
Monday – Friday (257 days per year)
• 3,780 packs are produced during Saturdays (48 days per year)
• Within a week 30,780 packs of Sporkies are produced
• Within a year, 1,477,440 packs of Sporkies are supplied in the market
• Proponents assume that efficiency increases by 2% per year
• All cookies baked should be packed within the day it was produced
• Delivery sessions are done trice in a week:
o Monday morning (Quantity Delivered: First Week: ; Second

Week: )
o Wednesday morning (Quantity Delivered: packs)
o Friday morning (Quantity Delivered: packs)
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o Frequency of delivery per session is trice (3) times
• There is 5.26% or 1,620 packs level of inventory left every week
Mon Tue Wed Thu Fri Sat
Packs 5,400 5,400 5,400 5,400 5,400 3,780

Produced pack packs packs packs packs packs
s
Total Output 10,800 packs 10,800 packs 9,180 packs

(2 Days
Operation)
Add: First Week: 0 1,620 packs 1,620 packs

Quantity left
in inventory Second Week:
(packs) 1,620 packs
Sum First Week: 12,420 packs 10,800 packs

10,800 packs
Second Week:
12,420 packs
Less: First Week: 10,800 packs 9,180 packs

Quantity to 9,180 packs
be delivered
(packs) Second Week:
10,800 packs
Total 1,620 packs 1,620 packs 1,620 packs

Quantity left
in inventory
Analysis:
On the first day of production (Monday), 5,400 packs of Sporkies are

produced. The same output is produced on the next day. All units produced are
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stored in the stockroom. On the morning of the third day, 9,180 packs will be
delivered, leaving 1,620 packs in the stockroom. These units are added to the
output produced on the third and fourth day of operation which is delivered on the
morning of the fifth day. An increase of 1,620 packs will be delivered on the fifth
day in which total number of packs to be delivered is 10,800 packs. Outputs on the
fifth and sixth day of operation will be delivered on the next week (Monday). The
number of packs to be delivered on that day is 10,800 packs. There is an increase
of 1,620 packs that will be delivered on Wednesday in order to maintain the level of
inventory. A level of 5.26% or 1,620 packs is maintained in the inventory.
Conclusion:
The technical aspect of the study is one important factor in a business

which indicates the flow of processes, operations, and maintenance
and other factor consider in this aspect in order to come up with a
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quality product like our proposed product. In the technicality in
operating our proposed product, we come up that it is feasible enough
to run the business because of well-maintained and well-managed
operation.
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CHAPTER III
MANAGEMENT ASPECT
SCOPE OF MANAGEMENT ASPECT
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• INTRODUCTION
• HISTORICAL ACCOUNT
• VISION, MISSION AND GOALS
• TITLE OF THE PROPOSED PROJECT
• NAME OF THE COMPANY
• BUSINESS LOCATION
• PROPONENTS OF THE STUDY
• FORMS OF OWNERSHIP
• TYPE OF ORGANIZATION
• ORGANIZATIONAL STRUCTURE
• PRE-OPERATING ACTIVITIES
• PERSONNEL PLANTILLA
• COMPENSATION SCHEME
• COMPANY POLICIES
• PERFORMANCE APPRAISAL
• WASTE MANAGEMENT
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Introduction
Management refers to the group of individuals who make decisions about

how a business is run. It is the process of coordinating and integrating work
activities so that they are completed efficiently and effectively with and
through other people. Management also defined as the “creative problem
solving-process of planning, organizing, leading, and controlling an
organization’s resources to achieve its mission and objectives. It involves
planning, organizing, leading and controlling which are done by managers.
Planning refers to defining goals, establishing strategy, and developing plans
to coordinate activities. According to Nickels, planning refers also to
“management function that involves anticipating future trends and
determining the best strategies and tactics to achieve organizational
objectives.” Aldag and Stearns, on the other hand, define planning as “the
selection and sequential ordering of tasks required to achieve an
organizational goal.” Planning, according to Cole and Hamilton is “deciding
what will be done, who will do it, where, when and how it will be done, and
the standards to which it will be done.” Organizing is a management function
which refers to ‘the structuring of resources and activities to accomplish
objectives in an efficient and effective manner.” It is undertaken to facilitate
the implementation of plans. It includes determining what tasks are to be
done, who is to do them, how tasks are to be grouped, who reports to whom,
and where decisions are to be made. Leading is that management function
which “involves influencing others to engage in the work behaviors necessary
to reach organizational goals.” Leading involves motivating subordinates,
directing others, selecting the most effective communication channel, and
resolving conflicts. Finally, Controlling refers to the “process of ascertaining
whether organizational objectives have been achieved; if not, why not; and
determining what activities should then to be taken to achieve objectives
better in the future. It is one of the main functions of management. It comes
after planning, organizing, and directing. Controlling includes monitoring
activities to ensure that they are being accomplished as planned and
correcting any significant deviations.
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Source: (investorwords, management.com)
Major Assumptions
• The proponents adopt partnership as their form of business ownership
• There is an expected increase of 2% in employees’ compensation every

year
• Hire qualified employees
• Top and middle management salaries are based on position
• Communication program involves memo for the top management down to

the rank and file that will be posted to the bulletin board. Suggestion box
is also provided
• The proponents will vote for the position of General manager who serve
for a 5 year period
• The proponents are capable of managing the manufacturing firm
• The proponents based the salaries in Salaries and Wages of the

Philippines
• Benefits and privileges are SSS, Phil health and PAG-IBIG
• The company provides uniform, and protective wear for the employees
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Historical Account
7th Century A.D. - The earliest cookie-style cakes are thought to date back
to 7th century Persia A.D. (now Iran), one of the first countries to cultivate
sugar (luxurious cakes and pastries in large and small versions were well
known in the Persian Empire). According to historians, sugar originated either
in the lowlands of Bengal or elsewhere in Southeast Asia. Sugar spread to
Persia and then to the Eastern Mediterranean. With the Muslim invasion of
Spain, then the Crusades and the developing spice trade, the cooking
techniques and ingredients of Arabia spread into Northern Europe. By the end
of the 14th century, one could buy little filled wafers on the streets of Paris.
Renaissance cookbooks were rich in cookie recipes.
1937 - The first chocolate chip cookies was invented in 1937 by Ruth Graves
Wakefield (1905-1977), of Whitman, Massachusetts, who ran the Toll House
Restaurant. The Toll House Restaurant site was once a real toll house built in
1709, where stage coach passengers ate a meal while horses were changed
and a toll was taken for use of the highway between Boston and New
Bedford, a prosperous whaling town. The Wakefields sold the restaurant in
1966. It burned down on New Year’s Eve in 1984. One of Ruth's favorite
recipes was an old recipe for "Butter Drop Do" cookies that dated back to
colonial times. The recipe called for the use of baker's chocolate. One day
Ruth found herself without a needed ingredient. Having a bar of semisweet
chocolate on hand, she chopped it into pieces and stirred the chunks of
chocolate into the cookie dough. She assumed that the chocolate would melt
and spread throughout each cookie. Instead the chocolate bits held their
shape and created a sensation. She called her new creation the Toll House
Crunch Cookies. The Toll House Crunch Cookies became very popular with
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guests at the inn, and soon her recipe was published in a Boston newspaper,
as well as other papers in the New England area. Word of the cookie spread
and it became popular.
1939 - This cookie became known nationally when Betty Crocker used it in
her radio series on "Famous Foods from Famous Eating Places." Ruth
approached the Nestle Company and together, they reached an agreement
that allowed Nestle to print what would become the Toll House Cookie recipe
on the wrapper of the Semi-Sweet Chocolate Bar. The company developed a
scored semisweet chocolate bar with a small cutting implement so that
making the chocolate chunks would be easier. According to the story, part of
this agreement included supplying Ruth with all of the chocolate she could
use to make her delicious cookies for the rest of her life.
1940s - Ruth sold all legal rights to the use of the Toll House trademark to
Nestle. On August 25, 1983, the Nestle Company lost its exclusive right to the
trademark in federal court. Toll house is now a descriptive term for a cookie.
1997 - A third grade class from Somerset, Massachusetts proposed that the
chocolate chip cookie be designated the official cookie of the Commonwealth.
The chocolate chip cookie was designated the official cookie of the
Commonwealth on July 9, 1997 under the General Laws of Massachusetts.
1996, 1999, and 2003 – A group of fourth-grade students at Caln

Elementary School in Coatesville introduced a resolution to designate the
chocolate chip cookie as the official state cookie of the Commonwealth of
Pennsylvania in 1996. Senate Bill 271 was introduced on February 1, 1999 to
designate and adopt the chocolate chip cookie as the official cookie of the
Commonwealth of Pennsylvania. The House is supporting the Nazareth sugar
cookie, in a bill sponsored by eight representatives, including Moon
Township's state Rep. and Senator-elect John Pippy. Another Senate Bill 320
was introduced by Thompson, Helfrick, M. White, Greenleaf, Rafferty, and C.
Williams on February 13, 2003 to designate and adopt the chocolate chip
cookie as the official cookie of the Commonwealth of Pennsylvania. The
House and Senate have been in disagreement or debate since these bills
were introduced. The bills have been tabled.
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Source: http://en.wikipedia.org/wiki/historyofcookies
Vision, Mission, Objectives and Values
Vision:
Goodies and Treats Company aims to promote innovative design in
cookies; extents nutritional value, and create products at maximum quality
that exceeds customer satisfaction and dream to be the leading snack (for
cookies in snack industry) manufacturer in the world.
Mission:
“As an inspired business organization, Goodies and Treats
Company offers high quality, environment-friendly and nutritional products
while continually improving employee morale and safety”.
Objectives:
• To introduce a new innovative product into the market
• To optimize the benefits of using unique design in cookies
• To make a product that is nutritious and environmental-friendly
• To offer a reasonable price for every product manufactured
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• To give excellent satisfaction to the customer
• To be recognized as a leading supplier of innovative cookies
• To develop good relationship with customer and supplier
Values:
In achieving company’s vision and mission, the company will be guided
by its core values of integrity, customer and market focus, teamwork and
respect for the individual, a strong competitive spirit and a passion for
excellence.
Title of the Project
A. Feasibility Study on Edible Spoon and Fork made from Cookies
The proponents decided to conduct this particular study to bring a new and
interesting product to the market. The proposed product is a combination of a
snack and a utensil. The product’s primary purpose is to satisfy the
consumers’ need for snacks. With its unique design that can be used as a
utensil, it becomes a very interesting product. At present, there is no snack in
the market (Philippines) that has the same characteristics with the proposed
product.
The proponents gathered information needed for the study through survey
using questionnaires, interviews, libraries, internet researches and actual
visit on government agencies. The proponents randomly selected the
respondents of the survey particularly the people living in the City of Lapu-
lapu, Mandaue and Cebu since it is the target test market.
Name of the Company
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The business name is very important factor because it recognizes the
company’s existence. The proponents came up with the business name
“Goodies and Treats Company” because of the business field where we want
to venture, which is the snacks industry. The proponents find the company
name right for the chosen field of industry.
The Company Logo:
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The company logo is simple yet it shows the creativity and the
youthfulness of the company as a new business entity. Bright colors have
been used to catch customers’ attention in order for them to know that the
company exists. There is an icon of a shopping cart; it shows that the
company wants that in every shopping cart that the customer fills, it should
contain goodies and treats in it.
Business Location
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Goodies and Treats Company is located at A.S Fortuna St. Mandaue City. The
location is near by the National Highway in which it is very accessible to any
land transportation vehicle.
PROPONENTS OF THE PROJECT
NAME AGE CONTACT INFO. INVESTMENT
09339536271 1,700,0
ALVIN T. 20 00.00 PHP.
alvinsept21@yahoo.com
BARING
09235591730
20
FREND E. myfrencute@yahoo.com 1,700,000.00
CABAHUG PHP.
09339480457
20
RAOUL JULIUS rjbascon@yahoo.com 1,700,000.00
BASCON PHP.
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FORMS OF OWNERSHIP
The company’s success depends on the people behind it, as businessman, it

is very important that we know the importance of knowledge on the field of
business, choosing the best forms of ownership really counts a lot.
The company chooses partnership as a form of ownership, since partnership

is a type of business entity that could be as easily formed as the single
proprietorship. More persons can conduct the business and handle its
problem. It has access to greater or better credit facilities and can combine
ability and resources of partners which can be a source of strength. However,
partnership can also lead to a delay and difficulties of some disagreement
between partners occur.
TYPE OF ORGANIZATION
Before the commencement of activities, the decision-makers in an
organization will have to decide on what structure to adapt. Depending on
the size and type of operations, a certain structural type may best fit the
requirements.
The proponents agreed to choose Functional Organization because this form

of departmentalization engaged in one functional activity, such as
engineering or marketing, is grouped into one unit. Functional organization
structures are very effective in smaller firms, especially single-business firms
where key activities revolve around well-defined skills and areas of
specialization.
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Analysis:
Functional organization structures are very effective in smaller firms,

especially single-business firms where key activities revolve around well-
defined skills and areas of specialization.
Functional Organizations have certain advantages which can apply to our

status of business:
1. The groupings of employees who perform a common task permit

economies of scale and efficient resource use.
2. Since the chain of command converges at the top of the organization,

decision-making is centralized, providing a unified direction from the
top.
3. Communication and coordination among employees within each

department are excellent.
4. The structure promotes high-quality technical problem-solving
5. The organization is provided with in depth skill specialization and

development.
6. Employees are provided with career progress within functional

departments.
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The proponents of Goodies and Treats Company chose functional type of
organizational structure. As what we can see, all department in-charge are under
supervision of the General Manager. They are entitled to report documents directly
to the Plant Manager. Some department in-charge has subordinates. The total
number of direct employees that the company has is 23 including top management
and 3 for indirect employees.
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Statistics:
Goodies and Treats Company Direct Employee: 20
Organizational Chart Indirect (Agency): 3

Effective as of July, 2010
Total :23
General Manager Approved by: General Manager

(1)
Research HR In- Quality Production Marketing & Accounting

and charge (1) Control In- In-charge (2) Purchasing In-charge
Developme charge (2) In-charge (1)
nt In-charge (1)
Legend:
Maintenan Security
=Indirect
ce (1) (2)
Sales & Employee
Utility Driver Production Marketing (Agency)
(1) (1) Workers (8) Agent (1)
=Direct
Driver Employee
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PRE-0PERATING ACTIVITIES:
Start Duration(d End

Tasks Date ays) Date
PROJECT PLANNING 1-Feb 18 25-Feb
CAPITAL ACQUISITION 7-Feb 10 18-Feb
OBTAINING PLANT SITE 21-Feb 5 25-Feb
SECURING PERMITS AND LICENSES 28-Feb 15 18-Mar
EQPT. AND MACHINES ACQUSITION 18-Feb 30 1-Apr
OFFICE SUPPLIES, TOOLS AND EQPT.
ACQUISITION 7-Mar 15 25-Mar
INSTALLATION OF TOOLS AND MACHINES
SET UP 14-Mar 15 8-Apr
HIRING AND TRAINING 7-Mar 24 1-Apr
INITIAL OPERATION 2-Apr 13 15-Apr
DESCRIPTION FEBRUARY MARCH APRIL
11- 16- 21- 26- 13- 18- 23- 28- 12-

1 - F e 6b - F e bF e b F e b F e b F e b 3 - M a8 r- M a Mr a r M a r M a r M a r2 - A p7 r- A p Ar p r
P R O J E C T P L A N N IN G
C A P IT A L A C Q U IS IT IO N
O B T A IN IN G P L A N T S IT E
S E C U R IN G P E R M IT S A N D L IC E N S E S
E Q P T . A N D M A C H IN E S A C Q U S IT IO N
O F F IC E S U P P L IE S , T O O L S A N D E Q P T . A C Q U IS IT IO N
IN S T A L L A T IO N O F T O O L S A N D M A C H IN E S S E T U P
H IR IN G A N D T R A IN IN G
IN IT IA L O P E R A T IO N
Shown above are the pre-operating activities that the company would do in
order to prepare for the actual preparation. Pre-operating activities would
take 2 months and 2 weeks to be completed according to the schedule
plotted by the proponents.
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Job description and Qualifications
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Position Job Description Job Qualifications
• The general manager • At least 2 years of
General oversees all access in the managerial experience
Manager business including: in a food industry
Marketing, accounting, • Preferably a graduate of
production, maintenance and any Business course,
workers. preferably (BSMA, BSA)
• Highly Skilled in the
field of general
management
• Sales oriented
• Fluent in spoken and
written English
Research • Responsible for developing, • 25-35 years old, male
and applying, revising and or female
Development researching quality standards • Preferably licensed
In- charge products chemist
• Conduct qualitative and • At least 3 years
quantitative and chemical experience in quality
analyses or chemical control offices specially
experiments in laboratory for in chemical
quality or process control or industry/food entity
to develop new products or • Computer literate and
knowledge with good
communication skills.
• Can work with minimum
supervision
HR • Responsibilities of recruiting • Preferably 1-3 years HR
In-charge and staffing logistics, experience in a high
performance management volume, fast-paced
and improvement systems, customer support
organizational development center environment
employee orientation, • Graduate of Industrial
development and training, Psychology
policy development and • Proficient in the use of
documentation, employee MS Office and the
relations, compensation and internet
benefits administration • Excellent
Communication and
interpersonal skills
• Must possess excellent
presentation, writing
and analytical skills
• Able to start work
immediately
Quality • Responsible for controlling, • Bachelor's degree -
Control and inspecting the quality of BSc.Food science&
In-charge product in terms of quality, technology
packaging, strength • Open for MALE/FEMALE,
at least 24 years old;
• 1 -2 years experience
working in the Quality
Control Department of a
Food Manufacturing
Company in the
capacity of f QC
Inspectors, Laboratory
Analyst or Quality
Assurance Specialist.
JOB DESCRIPTION REFERENCE

JD -001
Mandaue City, Cebu, Philippines
JOB DESCRIPTION
Position Title/Job Title : Date hired: ________________
Incumbent : Compensation Level :

_______________
Reports to : Employment Status:

__________________
Department Assigned : Employee No. :

__________________
No. of Subordinates : ________________
Last job preference evaluation: __________________
Over-AllJob
Responsibility:______________________________________________________________________
_____________________________________________________________________________________
___________________________________________________________________________
Detailed Job Functions:
1. ________________________________________________________________________
2. ________________________________________________________________________
3. ________________________________________________________________________
4. Until Last No. Accepts the job/task that may be assigned to the me
Acknowledge by: _______________ Approved by :

__________________
Incumbent : _________________ Immediate supervisor : ___________
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Date : _________________ Date :
___________
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Personnel Plantilla
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Salaries and Wages
Position No. of Rate / Day Monthly Salary Range Annual Salary

Employee
s (Salary
good for)
General Manager 1 1,000.00 30,000.00 PHP. 3-5 yrs 360,000.00
Research and 1 400.00 12,000.00 3-5 yrs 144,000.00

Development
In- charge
Human Resources 1 400.00 12,000.00 3-5 yrs 144,000.00
In -charge
Quality Control 2 400.00 12,000.00 3-5 yrs 144,000.00
In-charge
Production In-charge 2 400.00 12,000.00 3-5 yrs 144,000.00
Marketing and 1 400.00 12,000.00 3-5 yrs 144,000.00

Purchasing
In-charge
Accounting In-charge 1 400.00 12,000.00 3-5 yrs 144,000.00
Driver 1 300.00 9,000.00 3-5 yrs 108,000.00
Utility 2 285.00 8,550.00 3-5 yrs 102,600.00
Production Worker 8 285.00 8,550.00 3-5 yrs 102,600.00
Sales and Marketing 1 285.00 8,550.00 3-5 yrs 102,600.00

Agent
Totals 20
Total Amount Php. Php. Php. 1,639,800.00

4,555.00 136,650.00
Position
(agency Hired on-call

basis)
Security 1 285.00 8,550.00 3-5 yrs 102,600.00
Maintenance 1 285.00 8,550.00 3-5 yrs 102,600.00

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Total 2
Total amount Php.570.00 Php.570.00 Php.205,200.00

Analysis:
The table shows the total number of directly hired employees of Goodies and
Treats Company which is 20, while 2 of the employees are indirect in which it is
come from agency in on-call basis, the over-all total is 22. Their salary is based on
their job position within the organizational chart, together with their respective rate
per day, monthly rate, and annual rate. There is a range of 3-5 yrs for the salary of
employees in which their salary is subjected to increase depending on their stay on
the company and the evaluation on their performance.
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COMPANY POLICIES
POLICY ON HIRING
• Company vacancies are advertised through local newspaper
• Applicants should submit application before interview and examination
will be conducted.
• Before employees start working, they should undergo a one – day
training and should comply for SSS number clearance, police clearance
and health certificate.
• Signing contract should be done before the worker starts a job.
• Worker shall be provided with the company’s manual, which covers the
rules and regulations and safety procedures of the company.
WORKING POLICIES
• 1st shift employees are required to report to duty at exactly 7:00 in the
morning until 3:00 in the afternoon, 2nd shift employees are required to
report to duty at exactly 3:00 in the afternoon until 11:00 in the
midnight (M-F). Both shifts have a 30 minutes break.
• During Saturday: 1st shift 7:00am - 12:30pm and 2nd shift 12:30pm –
6pm
• The company operates 6 days per week.
• Employees must abide the company’s policies, rules and regulations.
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Health Attendance Policy
The goodies and treats company is very concerned with regards to the
health conditions of the employees. Since the company belongs to the
food industry, workers with illnesses like coughs, colds, fever and other
sickness are not allowed to work to prevent contamination of these
diseases with the company’s products. Employees are provided with
sick days in which they could use when they are sick. Employees
should use their personal days or vacation day’s non-illness related
time off. All full-time employees will receive sick days according to the
following schedule: Employees will be eligible for paid sick days after 6
months of employment. After 6 months of employment, employees will
be eligible for one sick day for every two months worked from date of
hire, with a maximum of 5 days in their first year of employment.
Every succeeding calendar year, employees will be eligible for 5 sick
days. Sick days may be accumulated and carried over from year to
year to a maximum of 10 days. All other unused sick days by the end
of the year is forfeited.
Overtime policy
1. Definition of overtime
• Overtime is time worked that exceeds the hours of a full-time

employee’s regular daily schedule on pay status or exceeds 40 hours
on pay status in a workweek.
• Pay status includes time worked and paid leave such as sick leave,
military leave, and compensatory time off, vacation leave, holidays,
and administrative leave with pay.
2. Overtime Rates
When employee works overtime, they will be paid at rate:
• Monday to Friday: 1.5 x hourly rate.

• Sunday: 2.0 x hourly rate.
• Holidays: 3.0 x hourly rate.
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3. Principles of working overtime
Employees are paid for working overtime provides that they must be in
compliance with principles as follows:
• Any overtime working must be agreed in advance with the line

manager.
• Overtime will only be paid for periods of more than one hour in any day.
• Advance warning of overtime working will be given wherever

practicable, but it is inevitable that some overtime may be required at
short notice due to sickness or other emergencies.
• Claims must be made monthly, for overtime worked in the previous

month, on authorized claim forms.
• Payments will be made through the payroll.
BENEFITS
Employee Protection
Employees are entitled to sick leave benefits that will provide financial
security even if they have lost the ability to earn in times of sickness or
injury.
Time of With Pay
Employees are also entitled to leave benefits that will allow for the
continuity of their wage earnings even if they are on vacation or have to
attend to emergency matters requiring their presence.
Health Care
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The company provides a comprehensive medical program for
employees and their dependents to protect them against financial burden
that comes with illness or injury.
Flexible Loan Facilities
The company offers an interest free loan facility that is tailored to address
the various
Financial needs of the employees. Its flexibility lies in the loan purpose,
amount, and guidelines.
Educational Program
This helps meet the financial requirements of employees who desire to
pursue further studies. It includes loan facilities for the educational needs of
employees’ dependents.
Insurance on Accident and Death Benefits
Financial assistance is extended to the bereaved family to help defray
expenses incurred as a result of the employee or an immediate family
member of an employee.
Retirement Benefits
The company provides a noncontributory to assist the employee in preparing
for a comfortable live even after retirement.
Pag-ibig
The company provides PAG-IBIG housing loan to the employees to have a
better and comfortable life while working with the company.
Social Security System (SSS)
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Primarily refers to Social welfare service concerned with social protection or
protection against socially recognized conditions, including poverty, old age,
disability, unemployment and others.
PhilHealth
The company is engaged in PhilHealth to assist employee during period of
sickness and when being hospitalized.
LEAVE BENEFITS
• Male employees have seven (7) days paternity leave.
• Sick leave with pay for fifteen (15 days) every year for regular
employees.
• Fifteen (15days) vacation leave with pay for those regular workers.
Uniforms
• 3 sets of uniforms are provided by the company to each employee
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COMPANY RULES AND REGULATIONS
Legend:
Verbal Warning – V
Written Warning – W
Suspension - S
Dismissal - D
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Rules and Regulations
1st 2ndoffen 3rdoffen 4th

offense se se offense
(Misconduct)
1. Sabotage – Deliberately
destroying or rendering
inoperative any mechanical D
that can harm the product
2. Work Ethics / Decorum –
Horseplay ,
Unruly conduct , rude
pranks , petty annoyances V W S D
such as loud talking,
shouting, whistling, noise
barrage and the like that
would cause disturbance,
disruptions or delay of work
3. Gambling / Betting – Engaging in

game of chance or lottery,
or soliciting bets therefore W 3-6 Days D
within company prmises S
4. Intoxication / and Use of

Prohibited Drugs – Drinking of
liquor or intoxicating beverages 15-30
inside company premises during days
company events outside company S
premises
5. Moral Conduct – Any Immoral, 15-30

scandalous, or indecent act days
or conduct howsoever
committed within company D
premises or outside S
company premises during
company event
6. Sexual Harassment – Directing

or inducing another to
commit any acts of sexual
harassment or cooperating D
in the commission thereof by
another, without which it
would not have been
committed
7. Violence, Threats, Intimidation – 15-30 f

Threatening or intimidating days
whether directly, superior, D
fellow employee, members S
PERFORMANCE APPRAISAL FORM
Appraisal Score:
EMPLOYEE INFORMATION
Name: Job Title:
Production Officers Name: Department:
Hire Date: Last Appraisal Date:
Evaluated By: Acknowledged by:
DEFINITION OF RATINGS:
A. EXCELLENT (300 PTS.): Consistently exceeds all relevant performance

standards. Provides leadership, fosters teamwork, is highly productive,
innovative, and responsive and generates top quality work. Active in industry-
related professional and/or community groups.
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B. ABOVE AVERAGE (250 PTS.): Consistently meets and often exceeds all
relevant performance standards. Shows initiative and versatility, works
collaboratively, has strong technical & interpersonal skills or has achieved
significant improvement in these areas.
C. AVERAGE (200 PTS.): Meets all relevant performance standards. Seldom

exceeds or falls short of desired results or objectives. Lacks appropriate level
of skills or is inexperienced/still learning the scope of the job.
D. FAIR (150 PTS.): Sometimes meets the performance standards. Seldom

exceeds and often falls short of desired results. Performance has declined
significantly, or employee has not sustained adequate improvement, as
required since the last performance review or performance improvement plan.
E. POOR (100 PTS.): Consistently falls short of performance standards.
INSTRUCTIONS:
Basing on the definition of ratings shown above, describe the employee’s

contributions in each of the performance categories below. Check only once
every category.
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A B C D E Weighted Total
CRITERIA
5 4 3 2 1 Score
Quality 10
Completes high quality work
according to specifications.
Thoroughly follows standards
and procedures. Keeps
complete records. Pays
attention to details. Has a
strong sense of quality and
knows how to achieve it.
Desire to Improve Quality 10
Continually looks for ways to
improve and promote quality.
Applies feedback to improve
performance.
Job Knowledge 10
Possesses skills and
knowledge to perform the job
competently.
Communication 5
Organizes and expresses ideas
and information clearly, using
appropriate and efficient
methods of conveying the
information.
Interpersonal Skills 5
Is sensitive to the needs,
feelings and capabilities of
others. Approaches others in a
non-threatening and pleasant
manner and treats them with
respect.
Conflict Resolution 5
Expresses alternative points of
view in a non-threatening way.
Knows when it is appropriate
to compromise and when it is
important to take a stand.
Teamwork 5
Works on projects as part of a
team, exchanging ideas and
contributing skills that
complement those of the other
team members. Fulfills
commitments to team
members.
Ethics 5
Maintains high level of
character and a professional
attitude. Is able to conform
and promote the company’s
standards of conduct.
Initiative 5
Strives to learn and improve.
Seeks out ways to better
themselves and the company.
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Takes on responsibilities. Does
not remain idle – is hard
working. Self-motivated.
Total Accumulated Score
Range of Points:
A. Excellent ----------------------- (300 – 251)
B. Above Average ----------------- (250 – 201)
C. Average ------------------------- (200 – 151)
D. Fair ------------------------------ (150 – 101)
E. Poor ------------------------------ (100 – 60)
Evaluator’s
Recommendations:___________________________________________________________
______________________________________________________________________________
____
Interpretation:
One the most effective methods of motivating employees is to give them

opportunities and rewards, experts say. Workers particularly respond to
public praise for their achievements.
Employees that grades as excellent (300-251) receives tangible

rewards such as:
• Monetary Bonuses
• Time-off
• Gift Certificates of merit
• Groceries
• Candidate for promotion if higher position is vacant/available
Employees that grades as Above Average (250-201) will be

compensated
Accordingly:
• Gift Certificates of merit
• Groceries
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• Acknowledgement on bulletin board
• Compliment their work while others are listening
Employees that grades Average score:
• Acknowledgement posted on bulletin board
Employees with Fair score:
• Decrease in 20% salary for half a year
• Relieved if not improved for the next Appraisal
Employees that grades Poor score:
• Relieved from work if receive poor consecutive performance
Note: Performance appraisal is conducted semi-annually
Waste Management
The egg shell is the primary waste identified by the proponents that is
needed to be managed.
Egg shell waste falls within the category of waste food, drink or materials
used in or resulting from the preparation of food or drinks and could, subject
to adequate scrutiny, be suitable for land spreading. The total neutralizing
value (lime) is almost the same as ground chalk or limestone tonne for tonne.
However, the physical nature of the egg shell waste (large shell fragments)
and the foul rotten egg odors produced when the material degrades reduce
the liming value and render the waste difficult to recycle to land. Ideally, the
waste should be dried at source, transported to a site where it can be finely
ground and used as a source of lime in agriculture. Some form of intensive
heat treatment will be necessary at some point in the process to guarantee
pathogen kill. However the costs of drying, additional transport, grinding and
heat treatment required are likely to make this option less desirable in the
short term.
Egg shell waste does have a value either as an animal feed or as a fertilizer
or lime substitute. In many other countries, it is accepted practice for egg
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shells to be dried and used as a source of calcium in animal feeds. This is
currently not undertaken in the UK, although it would be a very efficient use
of the industry's by-products. It is not used due to concerns over the transfer
of pathogens from raw animal by-products.
To dispose the company’s waste, the proponents will sell the egg shell to
animal feed or fertilizer manufacturers. It is a good waste management
method because the waste is disposed plus a source of extra income for the
company.
For other trashes and waste, there is a schedule or a routine in the collection
of garbage in the area where the company belongs.
Source: http://74.6.116.140/search/srpcache?ei=UTF-8&p=waste+management+egg+shell&rd=r1&meta=vc
%3Dph&fr=yfp-t-892-s&fp_ip=ph&u=http://cc.bingj.com/cache.aspx?
q=waste+management+egg+shell&d=4563802306447823&mkt=en-US&setlang=en-
US&w=3db16684,fd0c459&icp=1&.intl=us&sig=IQNXtMLP7QEhNu9.lUbO3w--
CONCLUSION:
Thus, we come up that our proposed product is feasible enough to

introduce in the market because of proper management, from higher-
positional level down to the lower-level. The proponents assure that proper
planning, organizing, leading, and controlling within the organization
increases employee morale, safety, and benefits in order for our worker to
work honestly, patient, with camaraderie for the success of the company.
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CHAPTER IV
FINANCIAL ASPECT
SCOPE OF THE FINANCIAL ASPECT
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• Introduction
• Major Assumptions
• Sources of Funds
• Projected Income Statement
• Analysis of Income Statement
• Projected Cash Flow
• Analysis of Cash Flow
• Projected Balance Sheet
• Analysis of Balance Sheet
• List of Notes
• List of Schedules
• Financial Ratios
• Analysis of Financial Ratios
• Conclusion
INTRODUCTION
In every business establishments or organizations there are goals needs to
attain. It involves careful planning and detailed analysis and evaluation before
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having certain decision that would make a lot of changes in the business
organizations. Financial conditions of the company which takes important part of
a certain projects. It shows the detailed information of the overall projects cost
of the company’s profitability and how it will handle all the financial obligations,
in doing such it is accompanied by presenting the company’s assets liabilities
the owner’s equities the estimated income and expenses, cash flows
presentations and all notes and schedules needed in the preparation of the
balance sheet and income statement.
Major Assumptions
• The proponents assume that taxes and licenses is 12% based on BIR
Vatable Report (Vatable Amount)
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• The proponents redeemed personal loan amounted to 3,700,000 PHP
each
• Rental expense would be 96,000 PHP per year
• The projections of the different accounts will increase per year using
the inflation rate which is 8%
• Machineries will have a useful life of 10 years
• Furniture and fixtures will have a useful life of 5 years
• The proponents assumed to use straight line method for depreciation
expense
• The proponents assume to have power and water (electricity and
water) Php 600,000 annually
• Telephone expense is 17,988 PHP per year
• Salary expense will increase 6% per year.
• Allocated renovation expense will be Php 50,000.00 in the succeeding
years, charged to repair & maintenance.
• Fuel expense is 1,800 PHP per week
• Salary and wages, direct and indirect labor will increase by 6% per
year
• The proponents assume that the number of employees is the same
within 5 years
• Repair and maintenance will have an allocation of 100,000 PHP for
renovation per year.
• Assumed that 80% of the total units available for sale for the year will
be sold. 90% of the 80% units sold will be sold as cash and 10% will be
charged to accounts receivable.
• Allocation for bad debts is 3 % of Accounts Receivable.
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CREDIT AND COLLECTION POLICIES
• Upon purchase debtor will be given 30 days to pay
• If the debtor fully pays earlier than 30 days he will be granted a 2%%
discount of the goods purchased.
• Upon delivery, 30% of the total credit should be paid as down payment.
• If debtor is unable to fully pay the entire credit amount, the company will
add a 1% interest to the amount to be paid for every passing day beyond
the given 30 day’s deadline.
TOTAL PROJECT COST
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Goodies & Treats Company
Pre-Operating Expenses
Pre-
Operating
Pre Investment Cash 117,979.19

Organizational Cost 8,310.00
Property, Plant &

Equipment 2,794,534.77
2,327,200.
Machineries & Equipment 00
Office Equipment 99,076.00
280,000.0
Transportation Equipment 0
Furniture & Fixture 88,258.77
Working Capital
Raw Materials 2,101,559.04
Factory Supplies 5,646,795.00
Office Supplies 82,794.00
Repair & Maintenance Supplies 5,537.00
Taxes & Licenses 36,095.00
Advertising 123,996.00
Fuel Expense 86,400.00
Rental Expense 96,000.00
8,179,176.04
Total Estimated Project Cost 11,100,000.00

Analysis:
The table shows the total estimated project cost with the amount of Php.
11,100,000.00. The cost is projected for the whole year round.
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PROJECTED INCOME STATEMENT
GOODIES & TREATS COMPANY
PROJECTED INCOME STATEMENT
(Philippine Peso)
2011 2012 2013 2014 2015
Sales 14,402,429.30 18,317,614.52 20,061,903.92 21,415,659.28 22,752,139.74

Less: Cost of Sales 12,002,024.42 12,720,565.64 13,482,462.31 14,299,986.17 15,172,948.50
Gross Profit 2,400,404.88 5,597,048.88 6,579,441.61 7,115,673.12 7,579,191.24
Operating
expenses 2,902,224.77 3,388,569.98 3,640,057.42 3,852,382.03 4,066,897.57
(501,819. 2,208,478. 2,939,384. 3,263,291. 3,512,293.6
Net Income / Loss 89) 91 19 09 6
Average Net 2,284,

Income 325.59
Payback Period 4.86
Analysis:
The table shows the projected income statement of the company. As what we
observed the company is gaining. As we continue the projection, we can see
that the net income is increasing. It’s a good indication that the company can
compete to the other.
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Balance Sheet
Pre-
Operating 2011 2012 2013 2014 2015
Current Assets
2,814,292. 4,094,332. 6,816,086. 10,001,386
Cash 117,979.19 24 15 90 .72 13,444,898.60
1,358,594. 1,634,424. 1,742,168. 1,807,907.
Accounts Receivable 73 37 42 81 1,868,756.43
Inventory -Office Supplies 82,794.00
3,600,607. 4,579,403. 5,015,475. 5,353,914.
Inventory Finished Goods 33 63 98 82 5,688,034.93
5,646,795
Inventory -Raw Materials .00
2,101,559 7,831,148.
-Factory Supplies .04 04 0.00 0.00 0.00 0.00 0.00
7,949,127 7,773,494 10,308,16 13,573,73 17,163,20

Total Current Assets .23 .29 0.15 1.30 9.35 21,001,689.96
Non Current Assets

Organizational Cost 8,310.00 8,310.00 8,310.00 8,310.00 8,310.00 8,310.00
Property, Plant & 2,794,534. 2,468,347. 2,142,160. 1,815,973. 1,489,786.
Equipment(net) 77 82 87 91 96 1,163,600.00
2,327,200
Machineries & Equipment .00
Office Equipment 99,076.00
280,000.0
Transportation Equipment 0
Furniture & Fixture 88,258.77
2,802,844 2,476,657 2,150,470 1,824,283 1,498,096
Total Non Current Assets .77 .82 .87 .91 .96 1,171,910.00
10,751,97 10,250,15 12,458,63 15,398,01 18,661,30
Total Assets 2.00 2.11 1.02 5.21 6.30 22,173,599.97
Liabilities
6,000,00 6,000,000. 6,000,000. 6,000,000. 6,000,000. 6,000,000.
Loan Payable 0 00 00 00 00 00 6,000,000.00
6,000,000 6,000,000 6,000,000 6,000,000 6,000,000
Total Liabilities .00 .00 .00 f .00 .00 6,000,000.00
Analysis:
The table shows the projected balance sheet of the company. Balance sheet actually represents the financial status
of the business as of a given date which consists of the three accounting values such as the assets, liabilities and
capital.
As what we have observed in the table, company’s pre-operating investment has increase. It’s a good indication that
company is really gaining thus it gives a favorable business opportunity. On the first year of operation, company’s
pre-operating investment is Php. 10,751,972.00, its increase to 12,458,631.02 on the second year recovering on the
lost during first year.
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Analysis: The ending cash balance of the company is 117,979.19 in the pre-operating period and is increasing in the
following years.

Statement of Cash Flows
Pre-
Operating 2011 2012 2013 2014 2015
Cash flows from Operation
(501,819.8 2,208,478. 2,939,384.1 3,263,291. 3,512,293.
Net Income/Loss 9) 91 9 09 66
Add: Depreciation 326,186.95 326,186.95 326,186.95 326,186.95 326,186.95
Bad debts 42,018.39 51,848.75 56,784.61 60,574.01 64,329.35
Increase/Decrease in assets
(1,400,613. (126,313.39 (125,177.9
Accounts Receivable 12) (327,678.40) (164,528.65) ) 7)
4,230,540.7 (338,438.84 (334,120.1
Inventory 1 (978,796.30) (436,072.35) ) 1)
2,696,313.0 1,280,039.9 3,185,299.8 3,443,511.8

Total 0.00 5 0 2,721,754.75 2 8
Cash flows from Investing

Activities
Feasibility Study 8,310.00
Property Plant & Equipment 2,794,534.77
Total 2,802,844.77 0.00 0.00 0.00 0.00 0.00
Cash flows from Financing

Activities
Total 0.00 0.00 0.00 0.00 0.00 0.00
2,696,313.0 1,280,039.9 3,185,299.8 3,443,511.8
Net Increase/ Decrease in Cash 0.00 5 0 2,721,754.75 2 8
2,814,292.2 6,816,086.9 10,001,386.
Add: Cash balance beginning 117,979.19 117,979.19 4 4,094,332.15 0 72
2,814,292.2 4,094,332.1 10,001,386. 13,444,898.
Cash Balance End 117,979.19 4 f 5 6,816,086.90 72 60
FINANCIAL RATIOS
Financial ratio is a ratio of selected values in an enterprises financial

statement. These ratios are very useful in any business organization because it
depicts the liquidity, solvency and profitability of a particular business industry. The
following are the discussions on the different ratios and its objectives.
Profitability
Ratio 2011 2012 2013 2014 2015
Gross Profit
Margin
2,400,404. 5,597,048. 6,579,441.6 7,115,673. 7,579,191.

Gross Profit 88 88 1 12 24
14,402,429 18,317,614 20,061,903. 21,415,659 22,752,139
Sales .30 .52 92 .28 .74
GPM 17.73% 31.29% 32.37% 33.23% 33.31%

0.1773:5. 0.3129:3. 0.3323:3.
RATIO 6 2 0.3237:3.1 01 0..3331:3
Analysis
:
This ratio signifies the average mark-up obtained in terms of the product sold. The ratio of
the
f
company shows a good implication because it is increasing. It shows the ability of the company to
both
control costs and inventories of products. The percentage of increase is that from 17.73% to 33.31%.
f
Net Profit
Ratio 2011 2012 2013 2014 2015
2011 2012 2013 2014 2015
Return on
Analys The ratio is very necessary because it indicates how much the company earned
Net Profit
Equity and eventually
Marginis:
able
Ratio to return the total investment. It gives and idea about how a firm's performance
Return on with regards
doing
(501,819.89
to the investments
Equity contributed 2,208,478.9
by the stockholders. The ratio is increasing and this is a
Net Profit
good ) 1 2,939,384.19 3,263,291.09 3,512,293.66
14,402,429. 18,317,614.
indication for the company,from (0.0573) to 0.4011, 20,061,903.9
meaning21,415,659.2
the company's22,752,139.7
profit
Net Income
Sales earned is (501,819.89
30 2,208,478.
52 2,939,384.2 3,263,291.0 8 3,512,293.66 4
increasing. It shows from the next ) 5 years91 the company19 9 regards to the
is doing well with
Ave. Owners NPM
investments. 8,757,671.0
(0.0348) 8,757,671.
0.1087 8,757,671.
0.1279 8,757,671.0
0.1352 8,757,671.06
0.1386
Equity (0.0348):2 6 06 06 6
RATIO 8.7 0.1087:9.2 0.1279:7.8 0.1352:7.4 0.1386:7.2
ROE (0.0573) 0.2522 0.3356 0.3726 0.4011
RATIO (0.0573):1 0.2522:4 0.3356:3 0.3726:2.7 0.4011:2.5
Analysi 7.5
s: Profit ratio is broadly used as an overall profitability of the operation in the business.
Therefore, in the ratio if net profit to net sales, the comparative analysis of the net profit and
sales is
considered to be a direct way of appraising the competency of the business activities. The ratio
of the
net profit to net worth is to assess the profitability of the worth. It is a good picture because it
increases for the following years. After the consideration of all the revenue and expenses,
company
got (0.0348) and it increase to
0.1386.
f
Operating 2011 2012 2013 2014 2015
Retur
n
on Asset
Operating 2,208,478.9 2,939,384. 3,263,291. 3,512,293.6

Income (501,819.89) 1 19 09 6
Ave. Total 14,757,671. 14,757,671. 14,757,671 14,757,671 14,757,671.
Assets 06 06 .06 .06 06
(0.0340) 0.1496 0.1992 0.2211 0.2380

0.2211:4.
RATIO (0.0340):29 0.1496:6.7 0.1992:5 5 0.2380:4.2
Analysi
s:
The ratio is increasing and this indicates a good indication to the company
since the total
operating income of the company is
increasing.
Net
Retur
n on
Asset 2011 2012 2013 2014 2015
(501,819.8 2,208,478.9 2,939,384.1 3,263,291.0 3,512,293.6

Net income 9) 1 9 9 6
Ave. Total 14,757,671 14,757,671. 14,757,671 14,757,671. 14,757,671.
Assets .06 06 .06 06 06
-3% 15% 20% 22% 24%

RATIO (0.03):33 0.15:6 0.20:5 0.22:4.5 0.24:4
Analys This explains how the management utilizes the assets and generates income.
is: The company's
ratios net return on assets shows a good implications because it is increasing. Increasing
net return on
assets means increasing amount of profit earned by the company. As what we see on the
table from the
first of the the operation the return of asset is -3% and it increases for the f
following years.
Analys
Turnover
is:
ratio
These ratios establish how
2011many times that the company's
2012 2013 assets2014
are being 2015
made
(Total useful
asset
in enduring sales. These will also tell us how fast the company can convert its inventories
turnover)
and
receivables. The ratio is 1:1 for the year18,317,614.
14,402,429 2011 and increasing for on 21,415,659.
20,061,903 the 22,752,139.
succeeding
Sales years. .30 52 .92 28 74
Ave. Total 14,757,671 14,757,671. 14,757,671 14,757,671. 14,757,671.
Turnover
Assets 2011
.06 2012
06 2013
.06 2014
06 201506
ratio
(Fixed asset
turnover) 0.9759 1.2412 1.3594 1.4512 1.5417
1.3594:0. 1.4512:0.6 1.5417:0.6
RATIO 0.9759:1 1.2412:0.8 7 9 5
Sales 14,402,429. 18,317,614. 20,061,903 21,415,659 22,752,139.
30 52 .92 .28 74
Ave. Fixed 1,815,973.9 1,815,973.9 1,815,973. 1,815,973. 1,815,973.9
Assets 1 1 91 91 1
7.9310 10.0869 11.0475 11.7929 12.5289

7.9310:0.1 10.0869:0. 11.0475:0 11.7929:0 12.5289:0.
RATIO 3 10 .09 .08 07
Analys
is:
The table shows the fixed asset turnover of the company. The ratio is 14:2,
which means in
every sale there is a turnover of
7.
f
Quick
ra
ti
o 2011 2012 2013 2014 2015
Current Asset- 4,172,886.9 5,728,756.5 8,558,255. 11,809,294 15,313,655.

Inventory 7 2 32 .52 03
6,000,000. 6,000,000. 6,000,000 6,000,000 6,000,000.
Current Liabilities 00 00 .00 .00 00
Curret
Ratio 0.70 0.95 1.43 1.97 2.55
RATIO 0.70:1.4 0.95:1.1 1.43:0.7 1.97:0.5 2.55:0.4
Analys
is:
The table shows the quick ratio of the company. This ratio is computed
through dividing
current assets by current liabilities. In general, the enterprises which hold the quick
assets
equivalent in amount to current liabilites are considered to have a favorable solvency.
In other
words, only the assets that can be converted into cash are included in this ratio.
Company's quick
ratio shows a good picture for the following years considering that it is increasing. It
indicates that
the company has the ability to use its quick
asset.
Leverage
ratio 2011 2012 2013 2014 2015
Debt to Asset Ratio

6,000,000. 6,000,000. 6,000,000. 6,000,000. 6,000,000.
Total Debt 00 00 00 00 00
10,250,15 12,458,63 15,398,01 18,661,306 22,173,599
Total Asset 2.11 1.02 5.21 .30 .97
Debt to Asset
Ratio 0.59 0.48 0.39 0.32 0.27
RATIO 0.59:1.7 0.48:2 0.39:2.6 0.32:3 0.27:3.7
f
Analysis:
The table shows the debt to asset ratio of the company. Company's debt to asset ratio shows a good
picture because its decreasing. It indicates that the company is capable enough to pay its liabilities on time.
As what we can see from the table above, on the first year has .59 and it goes down to .27 for the next five
years.
Payback Period
Total
Investment
Cost 11,100,000
Average Net
Income 2,284,325.59
Payback Period 4.86
Analys
is:
The table shows the payback period of the company. The company can have a
return to its
Investment for about 4.86
years.
f
Conclusion:
The investment for the project is reasonable. As a matter of fact, the working
capital
Requirement for the business is minimal. And financially, the investment will be gained
back in a
Short period of
time.
f
f
CHAPTER V
SOCIO-ECONOMIC ASPECT
A. INTRODUCTION
The socio economic aspect represents the involvement and advantage of the
proposed project towards the consumers, in one way or another are related to the
f
project. The aspects develop its attention on how Goodies and Treats Company will
benefit the community as well as the surrounding environment. This aspect is
concern on how the proposed project will contribute to the society, most especially
to the economy and to the value of people’s lives as well.
Company makes sure that the proposed project will be environmentally

friendly, free from chemical waste materials that may further contribute and
degenerate the problem of biohazards and pollution, because this project provides a
safe and healthy environment and a better standard of living.
B. IMPACT STATEMENT
Every company’s goal is to generate income and to be economically stable all
throughout the years. Goodies and Treats Company does not only focusing on how
much profit they might get but to what benefits it might give to people, community,
f
business sectors, government, and the nation as a whole. Its main concern is to
satisfy human wants and needs.
There are lots of noodles nowadays but the proponents believe that the
people will patronize the new product. Aside for the fact that it is very affordable; it
is also very tasty and nutritious. Effective marketing benefits society. It enhances
competition, which in turn, our company will continue improving the quality of our
product and also the price are set at low prices. This makes our country more
competitive in world markets and provides jobs and higher standard of living for the
citizens.
Goodies and Treats Company is located in the Philippines and its product is
purely made from the Philippines. Raw materials are all natural and full of nutrients.
This makes it a proud product of the Philippines. Goodies and Treats Company is
also concerned with the health and safety of people surrounding near the
establishment. The company assures and guarantees that the raw materials don’t
contain hazardous elements. The company makes some ways and means in
maintaining always the disposal of our waste without adverse effect to our
environment.
C. COST BENEFIT EVALUATION

There are lots of different sectors that are benefited by the company’s
operations and existence. Direct beneficiaries are the consumers, the government,
the economy and most especially the raw materials suppliers.
Consumer Benefits – One of the entities that will benefit the existence of our
proposed project is the consumers. The sales of product depend upon the
acceptance of the consumers. Businessmen are inspired to create and introduce
product that will respond to the consumer’s needs and wants. For this reasons, the
company must produce quality products that will satisfy costumer needs.
Government – The government is one of the entities who will benefit the proposed
project of the proponents because their funds will increase through the taxes being
paid.
Economic Benefits - Goodies and Treats Company does not focus on profit gaining
but also to help the economy grow by improving our economy through the job
opportunities we have given to the community. In the search for local jobs, this is a
huge benefit for economic development that we are trying to increase local
employment.
f
Suppliers – The suppliers also benefit from Goodies and Treats Company through
the raw materials being purchased by the company. In which, in return will be an
income on their part. And in terms of business relationship, both the organization
and the suppliers will also gain.
Market - Goodies and Treats Company aims to gain attention and preference by
providing a need satisfying product with effective marketing programs. The
company is aware of several methods in the market today but will strongly believe
that the public will patronize our product. The survey shows that the people are
willing to buy the new product.
D. SENSITIVITY ANALYSIS
The proposed project does not focus only for the company benefits itself but
it also extends a prospect to the different sectors such as economic, government,
market, suppliers and the consumer as a whole. The government will be able to
increase its revenue through the remittance of the company’s taxes. The project
has a great impact to the society of people who we all considered as consumers.
The new product is designed to answer their craving of eating nutritious foods and
eventually, guarantee them a good quality satisfaction they long for.
E. ENVIRONMENTAL IMPACT
This aspect is another feature that every company must consider. Goodies
and Treats Company is environment- friendly. In which Goodies and Treats
Company makes sure that the environment will not be polluted. There will be a
proper waste disposal and assures that these wastes don’t contain hazardous
elements.
F. REQUIREMENTS NEEDED TO START A BUSINESS

Before a project is realized, certain requirements need to be complied to
ensure the legality of the business and its operations.
The following are essential documents for the business to be legalized:
• Barangay clearance
• Mayor’s permit
• Business permit
• Building permit
• Sanitary permit
• Bureau of internal revenue registration
• Land transportation office
f
• Securities and Exchange Commission
• Safety permit
• Fee assessment
• Zoning clearance
G. CONCLUSION
Goodies and Treats Company wants to gain a huge profit but its main
concern is its responsibility to satisfy everyone’s wants and needs and to give job
opportunities to people and to promote a good standard of living all throughout the
community and the whole nation.
f
f
f
Appendices
Survey Form:
PAGKATAW: _____ Lalaki _____ Babae
f
EDAD: _____ 5 -9 _____ 10- 14
ADDRESS: ( ) Lapu-lapu ( ) Mandaue ( ) Cebu
PAMAAGI SA PAGTUBAG: Palihug ug butang ug CHECK sa mga blangko ubos sa mga pangutana. Kung wala sa pili-anan and imong tubag
pwede ra ibutang o isulat ang imong tubag o e- check lang ang blangko tapad sa uban pa.
1. Pila ka beses ka mo kaun ug cookies sa usa ka semana?
( ) Usa ka beses ( ) Duha ka beses ( ) Tulo ka bese ( ) Upat ka beses
( ) Lima ka beses
2. Pila ka buok putos ang imong mahurot kada kaun nimo ug cookies?
( ) Usa ka putos ( ) Duha ka putos ( ) Tulo ka putos ( ) Upat ka putos
( ) Lima ka putos
3. Taga-an ba ka sa imong ginikanan ug kwarta para palit nimo pagkaun?
( ) Oo ( ) Dili
4. Mga pila ang ilang e-hatag nga kwarta para nimo?
( ) 10 to 20 ( ) 21 to 50 ( ) 51 to 100 ( ) 100 pataas
f
Arithmetic Straight Line (Demand)
year Y difference a Yi-1 YC Y-YC (Y-YC)^2

39,283,1
2005 00
40,809,5 40,895,13
2006 48 1,526,448 1,612,030 39,283,100 0 -85581.75 7,324,235,933
42,421,6 42,507,16
2007 15 1,612,067 1,612,030 40,895,130 0 -85544.50 7,317,861,480
44,033,6 44,119,18
2008 82 1,612,067 1,612,030 42,507,160 9 -85507.25 7,311,489,803
45,731,2 45,731,21
2009 19 1,697,537 1,612,030 44,119,189 9 - -
6,448,119 5488396804
47,343,24
2011 1,612,030 45,731,219 9
48,955,27
2012 1,612,030 47,343,249 9
50,567,30
2013 1,612,030 48,955,279 8
52,179,33
2014 1,612,030 50,567,308 8
53,791,36
2015 1,612,030 52,179,338 8
Standard Deviation 74,083.71
f
Arithmetic Geometric Curve Demand
%
year Y increase Yi+1 1+r YC Y-YC (Y-YC)^2
39,283,1
2005 00 40,975,103 1.04 39,502,309 -219209 48,052,586,110.15
40,809,5
2006 48 3.74% 42,502,809 1.04 40,975,103 -165555 27,408,519,474.01
42,421,6
2007 15 3.80% 44,087,473 1.04 42,502,809 -81194 6,592,410,311.23
44,033,6
2008 82 3.66% 45,731,219 1.04 44,087,473 -53791 2,893,441,652.06
45,731,2
2009 19 3.71%
14.91% 21,236,739,386.86
2011 45,731,219 1.04 47,436,250
2012 47,436,250 1.04 49,204,852
2013 49,204,852 1.04 51,039,393
2014 51,039,393 1.04 52,942,333
2015 52,942,333 1.04 54,916,222
f
Statistical Straight Line Demand
X^
year Y X 2 XY a b bx YC Y-YC (Y-YC)^2
-
39,283,10 19641550 43,299,87 822,31 39,188,3
2005 0 -5 25 0 3 3 -4111567 06 94,794 8985992716
-
40,809,54 12242864 43,299,87 822,31 40,832,9
2006 8 -3 9 4 3 3 -2466940 32 -23384 546829272.5
42,421,61 43,299,87 822,31 42,477,5
2007 5 -1 1 -42421615 3 3 -822313 59 -55944 3129757776
44,033,68 44,033,68 43,299,87 822,31 44,122,1
2008 2 1 1 2 3 3 822,313 86 -88504 7832974874
45,731,21 137,193,6 43,299,87 822,31 45,766,8
2009 9 3 9 57 3 3 2,466,940 13 -35594 1266929446
47,520,07 237,600,3 43,299,87 822,31 47,411,4
2010 2 5 25 60 3 3 4,111,567 40 108,632 11800952808
259,799,2 57,561,94
Sum 36 70 0
5593906149
43,299,87 822,31 49,056,0
2011 7 49 3 3 5,756,194 67
43,299,87 822,31 50,700,6
2012 9 81 3 3 7,400,821 94
12 43,299,87 822,31 52,345,3
2013 11 1 3 3 9,045,448 20
f
16 43,299,87 822,31 10,690,07 53,989,9
2014 13 9 3 3 5 47
22 43,299,87 822,31 12,334,70 55,634,5
2015 15 5 3 3 1 74
Statistical Parabolic Demand

Year Y X X^2 X^4 XY X^2Y a b bx c cX^2 YC Y-YC Y-YC^2
- - 7,38 39,286,7 13338930.
2005 39,283,100 -5 25 625 196415500 982,077,500 43,213,732 822,313 4111567 4 184,588 52 -3652 06
- - 7,38 40,813,2 13653288.
2006 40,809,548 -3 9 81 122428644 367,285,932 43,213,732 822,313 2466940 4 66,452 43 -3695 93
7,38 42,398,8
2007 42,421,615 -1 1 1 -42421615 42,421,615 43,213,732 822,313 -822313 4 7,384 02 22813 520439487
7,38 44,043,4 94998439.
2008 44,033,682 1 1 1 44,033,682 44,033,682 43,213,732 822,313 822,313 4 7,384 29 -9747 37
137,193,65 2,466,94 7,38 45,747,1 - 252956528
2009 45,731,219 3 9 81 7 411,580,971 43,213,732 822,313 0 4 66,452 24 15905 .4
237,600,36 1,188,001,80 4,111,56 7,38 47,509,8 103743682
2010 47,520,072 5 25 625 0 0 43,213,732 822,313 7 4 184,588 87 10185 .7
259,799,23 3,035,401,50
Sum 6 0 70 1414 57,561,940 0
166521726
.1
5,756,19 7,38 49,331,7
2011 7 49 43,213,732 822,313 4 4 361,792 18
7,400,82 7,38 51,212,6
2012 9 81 43,213,732 822,313 1 4 598,064 17
2013 11 121 43,213,732 822,313 9,045,44 7,38 893,404 53,152,5
f
8 4 84
10,690,0 7,38 1,247,8 55,151,6
2014 13 169 43,213,732 822,313 75 4 12 19
12,334,7 7,38 1,661,2 57,209,7
2015 15 225 43,213,732 822,313 01 4 89 22
SD 12,904.33
Arithmetic Straight Line (Supply)

year Y difference a Yi-1 YC Y-YC (Y-YC)^2
2005 37,141,002
2006 38,581,584 1,440,582 1,538,711 37,141,002 38,679,713 -98128.50 9,629,202,512
2007 40,085,528 1,503,944 1,538,711 38,679,713 40,218,423 -132895.00 17,661,081,025
2008 41,655,880 1,570,352 1,538,711 40,218,423 41,757,134 -101253.50 10,252,271,262
2009 43,295,844 1,639,964 1,538,711 41,757,134 43,295,844 - -
6,154,842 9385638700
2011 1,538,711 43,295,844 44,834,555
2012 1,538,711 44,834,555 46,373,265
2013 1,538,711 46,373,265 47,911,976
2014 1,538,711 47,911,976 49,450,686
f
2015 1,538,711 49,450,686 50,989,397
SD 96,879.51
Arithmetic Geometric Curve Supply
% 1+
year Y increase Yi+1 r YC Y-YC (Y-YC)^2
-
1.0 21087
2005 37,141,002 38,756,618 4 37,351,877 5 44,468,330,179.34
-
1.0 17503
2006 38,581,584 3.73% 40,214,190 4 38,756,618 4 30,637,043,333.36
-
1.0 12866
2007 40,085,528 3.75% 41,726,578 4 40,214,190 2 16,553,810,966.46
1.0 -
2008 41,655,880 3.77% 43,295,844 4 41,726,578 70698 4,998,153,888.07
2009 43,295,844 3.79%
f
15.04% 24,164,334,591.81
1.0
2011 43,295,844 4 44,924,128
1.0
2012 44,924,128 4 46,613,649
1.0
2013 46,613,649 4 48,366,710
1.0
2014 48,366,710 4 50,185,700
1.0
2015 50,185,700 4 52,073,100
SD 155,448.82
Statistical Straight Line Supply

X^
year Y X 2 XY a b bx YC Y-YC (Y-YC)^2
-
1857050 37,029,1 111,8 12511423
2005 37,141,002 -5 25 10 40,961,438 786,458 -3932290 48 54 844
2006 38,581,584 -3 9 - 40,961,438 786,458 -2359374 38,602,0 - 41941323
f
1157447
52 64 20480 6
-
4008552 40,174,9 - 80015955
2007 40,085,528 -1 1 8 40,961,438 786,458 -786458 80 89452 58
41,655,8 41,747,8 - 84668881
2008 41,655,880 1 1 80 40,961,438 786,458 786,458 96 92016 70
129,887, 43,320,8 - 62338865
2009 43,295,844 3 9 532 40,961,438 786,458 2,359,374 12 24968 9
225,043, 44,893,7 115,0 13238847
2010 45,008,788 5 25 940 40,961,438 786,458 3,932,290 28 60 432
55,052,0
Sum 245,768,626 70 62
72102594
83
46,466,6
2011 7 49 40,961,438 786,458 5,505,206 44
48,039,5
2012 9 81 40,961,438 786,458 7,078,122 60
1 12 49,612,4
2013 1 1 40,961,438 786,458 8,651,038 76
1 16 10,223,95 51,185,3
2014 3 9 40,961,438 786,458 4 92
1 22 11,796,87 52,758,3
2015 5 5 40,961,438 786,458 0 08
SD 84,913.25
f
Statistical Parabolic Supply
X^
year Y X 2 X^4 XY X^2Y a b bx c cX^2 YC Y-YC Y-YC^2
- -
37,141,0 18570501 928,525,0 40,862,1 786,45 393229 8,50 212,7 37,142,5 - 2,532,417.
2005 02 -5 25 625 0 50 73 8 0 8 11 93 1591 56
- -
38,581,5 11574475 347,234,2 40,862,1 786,45 235937 8,50 76,57 38,579,3 4,882,269.
2006 84 -3 9 81 2 56 73 8 4 8 6 74 2210 03
40,085,5 - 40,085,52 40,862,1 786,45 8,50 40,084,2 1,703,099.
2007 28 -1 1 1 40085528 8 73 8 -786458 8 8,508 23 1305 57
41,655,8 41,655,88 41,655,88 40,862,1 786,45 8,50 41,657,1 - 1,585,152.
2008 80 1 1 1 0 0 73 8 786,458 8 8,508 39 1259 94
43,295,8 129,887,5 389,662,5 40,862,1 786,45 2,359,3 8,50 76,57 43,298,1 - 5,191,952.
2009 44 3 9 81 32 96 73 8 74 8 6 23 2279 86
45,008,7 225,043,9 1,125,219 40,862,1 786,45 3,932,2 8,50 212,7 45,007,1 2,606,148.
2010 88 5 25 625 40 ,700 73 8 90 8 11 74 1614 98
245,768, 141 55,052,06 2,872,383
Sum 626 0 70 4 2 ,010
3,083,506.
82
40,862,1 786,45 5,505,2 8,50 416,9 46,784,2
2011 7 49 73 8 06 8 13 92
40,862,1 786,45 7,078,1 8,50 689,1 48,629,4
2012 9 81 73 8 22 8 83 78
12 40,862,1 786,45 8,651,0 8,50 1,029, 50,542,7
2013 11 1 73 8 38 8 521 32
16 40,862,1 786,45 10,223, 8,50 1,437, 52,524,0
2014 13 9 73 8 954 8 926 53
22 40,862,1 786,45 11,796, 8,50 1,914, 54,573,4
2015 15 5 73 8 870 8 398 41
SD 1,755.99
f
NOTES AND SCHEDULES
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NOTE 6
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PERMITS, FORMS AND
LICENSES
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BIBLIOGRAPHY
BOOK REFERENCE
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Medina, Roberto G. Engineering Management:
Published and Distributed by: Rex Bookstore
Sherman, Donald, PhD Engineering Management and Proces. Third Edition
Published and Distributed in the Philippines by: KEN Incorporated
Niebel, Benjamin and Frievalds, Andris. Method, Standards, and Work Design.
International Edition
Distributed by: The Mc-Graw-Hill Companies
Cateora, Philip R. and Graham, John I. International Marketing. Eleventh

Edtion
Noe, Raymond A. and Hollenbeck John R. Human Resource Management.

Fourth Edition
Valencia, Edwin G. and Roxas, Gregorio F. Basic Accounting. Second Edition
Distributed by: Valencia Educational Supply
Lind, Douglas A. and Marchal, William G. and Mason, Robert D. Statistical

Techniques in Business and Economic. Eleventh Edition
De Leon, Emmanuel B. Industrial Psychology
Maynard, Harold B. Facilities Planning and Design
Baker, Richard E. and Lembke, Valdean C. and King, Thomas E. Financial

Accounting. Fifth Edition
Web Pages
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http://www.census.gov.ph./data/census2007/index.htm
http://www.ngkhai.com/pointcebu/facts/mandaue.htm
http://www.ngkhai.com/pointcebu/facts/lapu.htm
http://www.ngkhai.com/pointcebu/facts/demograph1.htm#PopGrowth
http://www.investorwords.com/4822/supply.html
http://www.quickmba.com/marketing/mix/
http://www.quickmba.com/marketing/product/lifecycle/
http://www.neda.gov.ph/ads/mtpqd/chapters1-6/ch2.htm
http://www.gsn.org/web/webproj/design/prjsite.htm
www.earth.google.com
http://www.gsn.org/web/webproj/design/prjsite.htm
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http://www.hse.gov.uk/comah/sragtech/techmeasplantlay.htm
http://www.hse.gov.uk/comah/sragtech/techmeasplantlay.htm
http://chinashoemachine.en.alibaba.com/aboutus.html)
http://www.alibaba.com/product-
gs/203363730/High_Effective_and_Universal_Grinder_grinding.html
http://www.fixturesgroup.com/content.php?
parent=slatwall_acrylic_trays&type=products&parent_menu_name=Slatwall
%20Acrylic%20Display%20Trays&title=Divided%20Acrylic%20Bin
%20Display&product_id=703
http://www.homebrewunderground.com/equipment/
http://www.etsy.com/listing/46618123/vintage-tupperware-measuring-cups-
set-of
http://barsupplies.com/measuring-spoons-p-549.html?
osCsid=h6ggmmhmh1l4mfo97vm450sm32
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http://www.hotplates.com/Kaiser-Bakeware-660554-KSR1388.htm
http://www.businessdictionary.com
http://www.lawphil.net/executive/execord/eo1987/eo_203_1987.html
http://www.thepoultrysite.com/articles/979/maintaining-egg-shell-quality;
http://www.rehab.research.va.gov/jour/70/7/2/swanson.pdf
CURRICULUM VITAE
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Alvin T. Baring
Soong Center, Mactan, Lapu-Lapu City
Email Add: alvinsept21@yahoo.com
Mobile #: 09339536271
PERSONAL BACKGROUND:
f
Age : 21 years old Secondary: Punta Engaño High
School
Birthday : September 2000- 2005
21, 1989
Punta Engaño, Lapu-lapu
Birthplace : Punta City
Engaño, Lapu-Lapu City
Primary: Punta Engaño Elementary
Civil Status : Single School
Religion : 1994- 2000
Roman Catholic Punta Engaño, Lapu-lapu City
Nationality : Filipino
Fathers name : Jerry

B. Baring
Mothers name : Dioscora T.

Baring
WORKING EXPERIENCE:
Office Assistant Coral Point

Incorporated.
Ibo, Marina Mall, Lapu-Lapu

City
EDUCATIONAL ATTAINMENT: March-May 2010
Tertiary: University of Cebu SEMINARS ATTENDED:

2005-
2010
Lapu-lapu and Mandaue Supervisory Seminar
A.C Cortes Ave. Looc, Mandaue UCLM, Annex Building AVR

City
December 12, 2009
f
IE Profession Seminar Mactan Chamber of Commerce and
Industry
UCLM, Annex Building AVR
Coralpoint, Punta Engaño, Lapu-Lapu
City
Business Entrepreneurship (340-3214)(09175495701)
Seminar
UCLM, New Building AVR

Engr. Jose Y. Monzon
Secretary General,
Mactan Island Chamber of Commerce

and Industry
Poblacion, Lapu-Lapu City
(09209089718)
Engr. Teodorico Mejaran Jr.

CHARACTER REFERENCES: Industrial Engineer, Instructor
Efrain T. Pelaez Jr. UCLM
President, Contact #: 09206713702
Coralpoint Educational Foundation
Incorporated
President,
Bascon, Raoul Julius Basea
Sacred Heart Village, Gun-ob, Lapu-Lapu City
Email Add: rjbascon@yahoo.com
Mobile #: 09339480457
f
PERSONAL BACKGROUND: A.C Cortes Ave. Looc,
Mandaue City
Secondary: Holy Cross College

Age : 21 years old
2005- 2006
Birthday : July 29, 1989
Carigara, Leyte
Birthplace : Cebu
Community Advance Instute of Technology
Hospital Cebu 2002-2005
City
Primary: City Central School
Civil Status : Single
2000-2002
Religion : Roman
Catholic Opon, Lapu-Lapu City,
Cebu
Nationality : Filipino
Saint Alphonsus
Fathers name : Raul Y. Catholic School
Bascon
1996-2000
Mothers name : Cristina R.
Bascon Opon, Lapu-Lapu City,
Cebu
SEMINARS ATTENDED:
Supervisory Seminar
December 12, 2009
EDUCATIONAL ATTAINMENT:
IE Profession Seminar

Tertiary: University of Cebu
2006- 2010
Lapu-lapu and Mandaue Business Entrepreneurship

Seminar
f
UCLM, New Building AVR
Mrs. Shankee Valiente
Manager
Pancake House Inc.
Tel. No.: (632) 758-5555
CHARACTER REFERENCES: Engr. Teodorico Mejaran Jr.
Hon. Mario Y. Amores, M.D. Industrial Engineer, Instructor
Former Vice Mayor UCLM
Lapu-Lapu City Contact #: 09206713702
495-4857
Frend E. Cabahug
A. Tumulak St. Gun-ob Lapu- lapu City
Email Add: myfrendcute@yahoo.com
Mobile #: 09235591730
PERSONAL BACKGROUND: Age : 20 years old
f
Birthday : November 22, Secondary: St. Alphonsos
1989 Cathololic School
2000- 2005
Birthplace : Pasay City,
Manila Lapu-lapu
City
Civil Status : Single
Religion : Roman
Catholic Primary: St. Alphonsos Catholic
School
Nationality : Filipino 1994- 2000
Fathers name : Alfredo I. Lapu-lapu
Cabahug City
Mothers name : Anita E.
Cabahug
WORKING EXPERIENCE:
On-the-job Training KIMWA

Construction
2008-2009
Development
EDUCATIONAL ATTAINMENT:
Corporation
Subang-daku,
Tertiary : University of Mandaue City
Cebu
2005- 2010
SEMINARS ATTENDED:
Lapu-lapu and
Mandaue
A.C Cortes Ave. Looc, 5th General Membership Meeting

Mandaue City and 1st JPIIE Visayas Student
Convention
f
University of San Carlos Technological Contact #: 09206713702
Center
September 26, 2009
Mr. Dominador P. Retardo

Supervisory Seminar
Director, Student Affairs
UCLM
December 12, 2009
Contact #: 09164514561
Technical Writing Seminar

Workshop
UCLM, Annex Audio Visual Room
April 15 and 16, 2010
CHARACTER REFERENCES:
Engr. Oscar S. Abordo
Infrastructure Development
Coordinator
Planning and Programming Division
Cebu City Government
Contact #: 09277657027
Engr. Teodorico Mejaran Jr.
Industrial Engineer, Instructor
UCLM

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Tel#: (032) 495-2010 Fax#: 495-2011

Office Address: A.S. Fortuna St.

Goodies and Treats E-mail: goodiesandtreats@yahoo.com

FEASIBILITY EVALUATION COMMITTEE

Engr. Kristian Cabahug Engr. Teodorico Mejaran

Engr. Kristian Cabahug

PANEL OF ORAL EXAMINERS

Approved by the panel of Oral Examiners with the grade of ____________________

Engr. Kristian Cabahug Engr. Teodorico Mejaran

Engr. Kristian Cabahug

Accepted in Partial Fulfillment of the Requirements for the Degree of Bachelor of

September 13, 2010 Engr. Kristian Cabahug,

Office Address: A.S. Fortuna St.

Goodies and Treats E-mail: goodiesandtreats@yahoo.com

To Engr. Kristian Cabahug, the Chairperson of the College of Allied

Engineering, encouragement and suggestions in making these research a reality.

us to give the best.

To our parents, siblings, and relatives who continuously provide the

start of the study to its completion.

study and fulfill its aim.

Office Address: A.S. Fortuna St.

Goodies and Treats E-mail: goodiesandtreats@yahoo.com

We dedicate this study to our

Dear parents who constantly support,

Care, and love us unconditionally.

We owe all of you a lot.

• An interview was conducted on the different distributors on Edible Spoon and

• An interview and survey questionnaires were given to each household

• Computation for the projection of the Demand and Supply is obtained.

• An online research through the internet was made to determine potential

1. THE MARKETING ASPECT

This includes the identification of potential customer’s demand and

2. THE TECHNICAL ASPECT

This includes choosing the right location in order to start a new

3. THE MANAGEMENT ASPECT

4. THE FINANCIAL ASPECT

5. THE SOCIO-ECONOMIC ASPECT

This includes the relationship between several people (costumers,

SCOPE OF THE MARKETING ASPECT

• DESCRIPTION OF THE MARKET

• PAST DEMAND AND SUPPLY

• PROJECTED DEMAND USING THE FOUR METHODS OF PROJECTONS

• SUMMARY ON THE STANDARD DEVIATION ON THE FOUR METHODS OF

• PROJECTED DEMAND GRAPH

• COMPUTATIONS OF TOTAL SUPPLY INCLUDING OTHER COMPETITORS

• PROJECTED SUPPLY GRAPH

• PAST COMPETITOR’S MARKET SHARE

• PRESENT MARKET SHARE

• PROJECTED UNTAPPED MARKET

• PROPOSED STRATEGIC MARKETING PLAN

• MARKETING STRATEGIES AND TACTICS

• PRODUCT LIFE CYCLE

One of the most important factors to consider in any business establishment is

Marketing is the process by which companies create customer interest in

Source: http://www. Wikipedia, marketing

• The Goodies and Treats Company, proposed as manufacturer of edible spoon

• Promotional activities include the use of leaflets, promotional posters and

• The company holds a 3.11% market share

• Demand is greater than supply

Target Market is referred as one or more specific groups of potential

• The proponents’ target market belong to these areas:

e 4% 8 62,050 64,635 67,220 69,909 6 4 8 4 5 7

lapu 8% 3 58,265 63,331 68,397 73,869 9 1 4 98 38 21