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Republic of the Philippines

Polytechnic University of the Philippines


COLLEGE OF ENGINEERING
INDUSTRIAL ENGINEERING DEPARTMENT
Sta. Mesa, Manila
NDC Compound, Sta. Mesa, Manila
Tel. No. 716-78-32 to 45

PROJECT FEASIBILTY STUDY ON
MANUFACTURING PREMIUM CRACKERS WITH
PHILIPPINE MANGO RAVIOLI FILLING

Written Report Presented
To
ENGR. JOSEPHINE LAGA
ENGR. CHRISTOPHER MIRA


In Partial Fulfillment
Of the requirement under the subject
PROJECT FEASIBILITY STUDY
For the degree
Bachelor of Science in Industrial Engineering

SUBMITTED BY:


BUGARIN, GRACE
GUILLERMO, ARLENE
LABRADOR, J AY VINCENT

BSIE V-3
ACKNOWLEDGEMENT | i

ACKNOWLEDGMENT

Above everything, all glory and praises to the Almighty God where our success
and victory came. He made all of these possible. He was our strength and very present
in the times of need.
To our school Polytechnic University of the Philippines, for its name that we carry
all throughout during this study which brings honour to us as a student.
To the Department of Industrial Engineering and its faculty especially Engr.
J osephine Laga and Engr. Christopher Mira, for always assisting us when in times of
queries, and for helping us complete all the requirements for the study.
To our classmates, BSIE 5-3 for the never ending support while doing our
feasibility study. Unconsciously, we were looking out for each other even though it
seems like sometimes we were not.
To our friends, for giving us a helping hand and not having second thought to
share their expertise in our study.
To our family, for helping us boost our confidence and believing our capabilities.
All of you are our best treasures. We cant thank you enough for everything, and
we mean EVERYTHING. You are our life and our major, major blessing. We love you
all.
The Proponents

TABLE OF CONTENTS | ii


TABLE OF CONTENTS
I. EXECUTIVE SUMMARY 1
II. MARKETING ASPECT
a. Marketing Assumption 6
b. Product Description 7
c. Market Analysis 7
d. Stages of Development 8
e. Industry Analysis 8
f. Market Segmentation 9
g. Customer Analysis 10
h. Competitors Analysis 11
i. Demand Analysis 12
j. Supply Analysis 16
k. Demand Supply Consolidation 18
l. Market Share 21
m. Marketing Strategy 25
n. Sales Strategy 29
o. SWOT Analysis 30
p. Future Market Expansion 31
q. Possible Marketing Problems and Alternatives 32



TABLE OF CONTENTS | iii

III. MANAGEMENT ASPECT
a. Management Assumptions 33
b. Company Name and Logo 34
c. Company Overview 35
d. Company Vision, Mission, Values and Objectives 36
e. Form of Business Organization 37
f. Pre-Operations Timeline 41
g. Organizational Structure 42
h. Manpower Distribution 43
i. Job Descriptions 43
j. Company Rules and Policies 55
k. Administrative Expenses 63
IV. TECHNICAL ASPECT
a. Technical Assumptions 72
b. Product Description 73
c. Manufacturing Process 74
d. Manufacturing Flow Chart 77
e. Plant Capacity and Production Schedule 80
f. Manufacturing Equipment 83
g. Plant Location and Facilities 90
h. Raw Materials and Supplies 96
i. Equipment and Supplies 99
j. Waste Disposal 106
TABLE OF CONTENTS | iv

V. FINANCIAL ASPECT
a. Financial Assumptions 108
b. Project Cost 110
c. Financial Statements
i. Cost of Goods Sold 111
ii. Income Statement 112
iii. Owners Equity 113
iv. Cash Flow 114
v. Balance Sheet 115
d. Financial Analysis
i. Liquidity 116
ii. Profitability 117
iii. Payback Period 119
iv. Breakeven Analysis 120
VI. SOCIO ECONOMIC ASPECT 121
VII. APPENDICES






EXECUTIVE SUMMARY | 1








EXECUTIVE
SUMMARY










EXECUTIVE SUMMARY | 2

Executive Summary
I. The Company
The Premier Foods Company is a company of happy and creative people
striving for excellence in providing quality snack food at competitive cost to uplift the
lives of consumers. The company envisions itself as one of the leading
manufacturing company in the country in delighting the customers with exceptional
quality and best value snack food within your reach. The company manufactures the
very first premium crackers with mango ravioli filling. The business is located at
Sheridan Street corner Pine Street, Coating Industries of the Philippines Compound,
Mandaluyong City.
II. The Proponents
Bugarin, Grace
Guillermo, Arlene
Labrador, J ay Vincent

III. Objectives of the Study
To determine the possible advantages and disadvantages of the
proposed business over the others.
To establish the best form of business organization that will best suit
the nature of the business.
To determine the marketability and profitability of the project.

IV. Highlights of the Project
The concept of Premier Foods Company was proposed due to the need in the
market for a delicious product came from our own agricultural products like mango
that people will enjoy. It is visible that people are getting more aware on the
countrys own products that are imported-like and with exceptional taste and quality.
EXECUTIVE SUMMARY | 3

The business will be established in Sheridan Street corner Pine Street,
Coating Industries of the Philippines Compound, Mandaluyong City due to its
proximity to our target market and high rate of population growth.
V. Marketing Aspect
Established in 2013, Premier Foods Company is generally a manufacturing
company that produces new variant of snack food under the brand name Delights,
a name with consistent quality, great value and fun in filling everyones snack needs.
Its first variant, the Mango Ravioli Cracker is the first in the market that combines the
crunchiness of premium cracker sandwiched in 100% natural thick and chewy
Philippine Mango Ravioli Filling. It will be packed in easy-tear plastic foil with volume
content of 10 x 34g per pack. Based on the survey, supply analysis and gap analysis
assumptions, the company learned that introducing Delights in the market will be
patronized by its potential customers.
The company also strives for excellence in marketing and distribution as well.
High impact advertising and promotions will build a strong market base and effective
distribution network that ensures product availability and recognition nationwide. The
business distribution plan is: from the manufacturing plant, the products will be
distributed to different groceries, supermarkets, convenience stores and public
market within the 25 km. radius from its plant site. They will serve as our distributing
agents to our target consumers since it is the usual place where we buy goods.
VI. Management Aspect
The Premier Foods Company is a general partnership form of food
manufacturing company established and agreed upon legal conditions by the
investment parties namely Grace Bugarin, Arlene Guillermo and Jay Vincent
Labrador. The business is an association of investors who share same risks and
profits through common terms.
With its all high trained technical, production and packaging personnel work
under firm supervision in order to produce good quality results, the company will
EXECUTIVE SUMMARY | 4

continue to strive in making different variants of biscuit that would bring new taste in
the market and could open more possibilities in bringing Philippine made products to
the international market.
VII. Technical Aspect
The Premier Foods Company has a total land area of 1200 sq. meters
located in Mandaluyong City. We selected this location primarily because of its
proximity to the target markets, suppliers and the availability of workers within the
area.
Premier Foods Companys processing and manufacturing facilities are
efficient and dependable. Here, quality biscuits are processed, packed and sealed
under strict quality control measures that ensure optimal standards and meeting
product specifications.
VIII. Financial Aspect
The company shows the financial statements for five years such as the cost
of goods sold, income statement, statements of cash flows and balance sheet. To
make the business operational, the partners will invest Php 4,333,000 each for a
total amount of Php 12,999,000.The business foresees that there is a possibility of
business expansion if the proper management of financial matter will be handled
properly.
IX. Socio Economic Aspect
Premier Foods Company aims not only to gain profit but also to contribute for
the development of the economy through several ways by paying due taxes, which
will give funds to the national and local government for their projects. The business
will also create and provide job opportunities to people who in turn, will help them
and their families improve their standard of living.


MARKETING ASPECT | 5








MARKETING
ASPECT










MARKETING ASPECT | 6

Marketing Aspect
The Marketing Aspect of the feasibility study will discuss the fundamental nature
of the business, service description, its industry and marketplace analysis and its
marketing strategy towards companys succession. The element covered in the
marketplace analysis however, will focus on the setting where the business is supposed
to be established. Demand and Supply will be analyzed in the demand and supply
analysis itself resulting to the target market shares. The consideration in the application
of distinctive marketing strategies associated in the business like pricing, promotional
and advertising will also be discussed in this chapter.
Objectives
1. To introduce our newly structured business enterprise to our potential customers.
2. To interpret the meaning contained on our company logo.
3. To analyze competitors market structure.
4. To differentiate our service from our competitors trend.
5. To identify the market needs.
6. To be able to identify the marketability of the service and the business itself.
7. To analyze the demand of our target market within our target area and other
areas nearby that are included in 25 kilometre radius rule from the business
location.
8. To determined our potential demand.
9. To form a distinctive and effective marketing strategy.
10. To establish good service quality, pricing, sales, advertising and promotional
strategies.
11. To show the schedule of marketing expense and its projected cost for five years.
Marketing Assumption
The following assumption was made in order to compute the demand and supply of
crackers:
o The proponents assumed that there is 10-15% error in the response of the
respondents.
MARKETING ASPECT | 7

Product Description
The proposed product will be first in the market that combines the crunchiness of
cracker sandwiched in thick and chewy Philippine Mango Ravioli filling. The product will
carry the name Delights. It will be packed in easy-tear aluminium foil with volume
content of 34g per pack. The label contains the name of the product, company name
and logo, nutritional value, volume content, ingredients and a little description about the
product. It is also stressed that the product is proudly Filipino made. This will be another
heavenly treat and winning combination that will surely become a new favorite. This fun
combination of chewy Philippine Mango Ravioli filled into crunchy cracker will surely
love by the consumer age 5 and above. The company will critically analyse the pricing
strategy that is appropriate for the product.
Figure 1.1






Market Analysis
The companys principal competitors would be other cracker with filling brands
that is sold in the market. Since the product is new to its kind, we will be competing by
offering a natural fruit ravioli filling. Republic Biscuit Corp. is todays number one
producer of cracker with filling in the Philippines. It has been producing variety of
sandwiches for the past years such as Rebisco Sandwich that comes in 5 variants -
Choco, Strawberry, Cream, Butter, and Peanut Butter, Combi that is available in
Strawberry Milkshake, Creamy Choco and Triple Choco flavors and the Rebisco
Extreme Choco - chocolate-filled choco coated crackers topped with chocolate
MARKETING ASPECT | 8

sprinkles. Universal Robina Corporation being the second in rank is known for its Magic
Crackers that has 2 variants Chocolate and Peanut Butter. Although Croley Foods
has been already offering Sunflower Cracker Mango cream sandwich and other fruit
cream sandwich in the market, they are only using artificial flavour.
Stage of Development
The Premier Foods Company is offering the very first natural fruit cream
sandwich, the product is in its early stage and it is now ready for the market. And since
it is new to the market, difficulties may arises but still looking forward to become one of
the biggest companies that distributes cream sandwiches in the market, locally and
internationally.
Industry Analysis
The food industry is concerned with processing, preparing, preserving,
distributing, and serving food and beverages. The patronage for food industry is one of
the largest markets because food is needed by everyone. Nowadays, snack food
industry or somewhat called convenience food is an uprising industry in terms of food
line that comes in various variants. The snack food industry in market- driven cities such
as the National Capital Region generates millions of pesos every year. The market for
snack foods is enormous, and a number of large corporations compete rigorously to
capture larger shares of the snack food market, including the biscuits and crackers. In
order to gain massive consumers, full advertising was exhibited by the manufacturing
food companies in the country and most of the TV commercials, newspaper, magazine
and other publication advertisements are effective in promoting the food products.
Some of the important players in manufacturing crackers present in the countrys
market area are Universal Robina Corporation, Republic Biscuit Corporation, MY San
Corporation, Monde Nissin and other small scale manufacturers. The crackers available
in the market nowadays produced by the existing players come in plain flavour and
different fruity fillings like strawberry, orange, lemon, grapes and coconut.
Here in our country where mangoes are typical fruit snack of the Filipino and are
an agricultural product, it will be a good potential in terms of cracker filling especially
MARKETING ASPECT | 9

when it is 100% natural. Addition to this, a chewy ravioli physique filling will make the
crackers more tempting and is new to the consumers taste in the country.
Market Segmentation
The scope of the marketplace is within the 25km radius from its point of origin,
Mandaluyong City. The market area covered is all cities and municipality in the National
Capital Region (NCR).
The location of the plant will be at 1502 Sheridan Street corner Pine Street,
Coating Industries of the Philippines Compound, Mandaluyong City. The company
decided NCR to be its marketplace because it has the largest population and very
accessible among the 12 regions.
Table 1.1: Total Population and Household Population
by City/Municipality: NCR 2007
CITY / MUNICIPALITY
(NCR)
Total Population Household Population
Manila 1,660,714 1,650,712
Mandaluyong 305,576 300,888
Marikina 424,610 424,020
Pasig 627,445 626,260
Quezon City 2,679,450 2,667,372
San Juan 125,338 124,711
Caloocan City 1,381,610 1,379,942
Malabon 363,681 362,921
Navotas 245,344 245,308
Valenzuela 568,928 568,796
Las Pinas 532,330 531,833
Makati 567,349 547,494
Muntinlupa 452,943 434,479
Paranaque 552,660 551,736
Pasay 403,064 402,436
Municipality of Pateros 61,940 61,761
Taguig 613,343 610,795
TOTAL 11,566,325 11,491,464
MARKETING ASPECT | 10

The proponents conducted a survey to the target market area to know the
preferences of the prospective buyers of the new product that will soon be offered in the
market. The response of the prospective buyers or potential customers will be a
relevant data to estimate and satisfy the customer demand.
The standard sample size of 400 is used to represent the whole population of the
target market. (See Appendices for survey results analysis.)
Sample size
Sample size
Computation of Sample Size
=

1+
2




=
2,298,293
1 +2,298,293(0.05)
2

=

Customer Analysis
The primary consumers of the product are the households in the target market
area. It is intended for both male and female ages 5 years old and above, most
preferably to the adults that have a family, because they are more aware with the
benefits of the food they are buying. The consumers choices are affected with factors
like taste and healthy options that the product offers.
According to the result of the survey we have conducted, 142 of the respondents
have 100% willingness to try our product. Primary factors that consumers considered
when buying biscuits are flavour, filling, and nutrition value.

where:
n=sample size
N=total size of household
population (2008)
e=% error (5%)
2

MARKETING ASPECT | 11

The product does not only intend to offer a new taste in biscuits but it also aims
to satisfy the nutritional needs of the consumers. It will be an alternative snack food to
the junk foods which have little nutritional value.
Competitor Analysis
The competitors have been identified through the survey we have conducted.
Our direct competitors are the companies that manufacture biscuit and crackers (e.g.
plain biscuit/cracker, biscuit/cracker with filling, flavoured biscuit/cracker, etc.). Our
competitors have already established their names in the market which acquire them
loyal customers that patronize their products.
A survey was done to 400 respondents about the brand that they usually buy in
the market. The data below shows the list of different brands that exist in our
marketplace.
Table 1.2: List of Direct Competitors

Table 1.3: Prevailing Prices of Competitors

MANUFACTURER BRAND
PACKING
WEIGHT
PRICE IN
PESO
Monde M.Y. San Corp. Skyflakes Cracker Sandwich 10 x 30g Php 49.50
Monde Nissin Corp. Voice 10 x 25g Php 47.50
Republic Biscuit Corp. Rebisco Crackers 10 x 34g Php 51.50
Universal Robina Corp. J ack & J ill Magic Flakes 10 x 30g Php 49.50



MANUFACTURER BRAND(S)
Monde M.Y. San Corp. Skyflakes Cracker Sandwich
Monde Nissin Corp. Voice
Republic Biscuit Corp. Rebisco Crackers
Universal Robina Corp. J ack & J ill Magic Flakes
MARKETING ASPECT | 12

DEMAND ANALYSIS
The data shown below is the historical and projected number of household
population on the target market area.
Identification and Analysis of Demand Determinant
1. Population
The total household population from the cities covered by the market destination
has a total projected population of 12,780,898 as of 2012.

Table 1.4: Population For The Last Five Years
TOTAL HOUSEHOLD POPULATION FOR THE LAST 5 YEARS
CITY / MUNICIPALITY
(NCR)
Annual
Growth
Rate
HISTORICAL POPULATION
2008 2009 2010 2011 2012
Manila 0.68 1,661,937 1,673,238 1,684,616 1,696,071 1,707,605
Mandaluyong 1.29 304,769 308,701 312,683 316,717 320,802
Marikina 1.14 428,854 433,743 438,687 443,688 448,747
Pasig 3.04 645,298 664,915 685,129 705,957 727,418
Quezon City 2.92 2,745,259 2,825,421 2,907,923 2,992,834 3,080,225
San J uan 0.87 125,796 126,890 127,994 129,108 130,231
Caloocan City 2.23 1,410,715 1,442,174 1,474,334 1,507,212 1,540,823
Malabon 0.98 366,478 370,069 373,696 377,358 381,056
Navotas 0.87 247,442 249,595 251,766 253,957 256,166
Valenzuela 2.21 581,366 594,215 607,347 620,769 634,488
Las Pinas 1.65 540,608 549,528 558,595 567,812 577,181
Makati 2.12 559,101 570,954 583,058 595,419 608,042
Muntinlupa 2.48 445,254 456,296 467,613 479,209 491,094
Paranaque 2.88 567,626 583,974 600,792 618,095 635,896
Pasay 1.77 409,559 416,808 424,186 431,694 439,335
Municipality of Pateros 1.05 62,409 63,065 63,727 64,396 65,072
Taguig 3.82 634,127 658,351 683,500 709,610 736,717
TOTAL

11,736,600 11,987,937 12,245,647 12,509,907 12,780,898
*Source: National Statistics Office





MARKETING ASPECT | 13

Table 1.5: Household Population For The Last Five Years

HOUSEHOLD POPULATION FOR THE LAST 5 YEARS
CITY /
MUNICIPALITY
(NCR)
ESTIMATED
HOUSEHOLD
SIZE
HISTORICAL POPULATION
2008 2009 2010 2011 2012
Manila 5 332,387 334,648 336,923 339,214 341,521
Mandaluyong 5 60,954 61,740 62,537 63,343 64,160
Marikina 5 85,771 86,749 87,737 88,738 89,749
Pasig 5 129,060 132,983 137,026 141,191 145,484
Quezon City 5 549,052 565,084 581,585 598,567 616,045
San J uan 5 25,159 25,378 25,599 25,822 26,046
Caloocan City 5 282,143 288,435 294,867 301,442 308,165
Malabon 5 73,296 74,014 74,739 75,472 76,211
Navotas 5 49,488 49,919 50,353 50,791 51,233
Valenzuela 5 116,273 118,843 121,469 124,154 126,898
Las Pinas 5 108,122 109,906 111,719 113,562 115,436
Makati 5 111,820 114,191 116,612 119,084 121,608
Muntinlupa 5 89,051 91,259 93,523 95,842 98,219
Paranaque 5 113,525 116,795 120,158 123,619 127,179
Pasay 5 81,912 83,362 84,837 86,339 87,867
Municipality of Pateros 5 12,482 12,613 12,745 12,879 13,014
Taguig 5 126,825 131,670 136,700 141,922 147,343
TOTAL

2,347,320 2,397,587 2,449,129 2,501,981 2,556,180
*Source: National Statistics Office; Average number of households is 5 members.




MARKETING ASPECT | 14


2. Estimation of the Demand of Crackers
Table 1.6: Historical Demand of Crackers
HISTORICAL DEMAND OF CRACKERS
YEAR HOUSEHOLD
FREQUENCY OF
CONSUMPTION PER WEEK
DEMAND IN CRACKERS ANNUAL
DEMAND IN
CRACKERS
1
pack
2
packs
3
packs
4
packs
1 pack 2 packs 3 packs 4 packs
2008 2,347,320 22% 49% 17% 12% 26,853,340 59,809,712 20,750,308 14,647,276 122,060,637
2009 2,397,587 22% 49% 17% 12% 27,428,400 61,090,526 21,194,672 14,960,945 124,674,543
2010 2,449,129 22% 49% 17% 12% 28,018,040 62,403,817 21,650,304 15,282,567 127,354,728
2011 2,501,981 22% 49% 17% 12% 28,622,666 63,750,484 22,117,515 15,612,363 130,103,029
2012 2,556,180 22% 49% 17% 12% 29,242,694 65,131,454 22,596,627 15,950,560 132,921,335

Table 1.8 shows the demand of crackers on years 2008-2012. The trend of household population is increasing
while the percentage of consumption/demand of crackers per week is steady at 22% for 1 pack, 49% for 2 packs, 17% for
3 packs and 12% for 4 packs. The demand in crackers per pack is increasing as the number of households increase.

Computation for Statistical Straight Line of Projection
= +
Where: =

2
()
2

MARKETING ASPECT | 15


Table 1.7: Statistical Straight Line Method of Historical Demand of Crackers Per Pack
STATISTICAL STRAIGHT LINE METHOD OF HISTORICAL DEMAND OF CRACKERS PER PACK
YEAR Y X X
2
XY A B Yc Y-Yc (Y-Yc)
2

2008 122,060,637 1 1 122,060,637 119,277,890.61 2,714,987.97 121,992,878.58 67,758.83 4,591,258,937.14
2009 124,674,543 2 4 249,349,087 119,277,890.61 2,714,987.97 124,707,866.54 (33,323.06) 1,110,426,209.94
2010 127,354,728 3 9 382,064,185 119,277,890.61 2,714,987.97 127,422,854.51 (68,126.15) 4,641,172,884.76
2011 130,103,029 4 16 520,412,115 119,277,890.61 2,714,987.97 130,137,842.47 (34,813.83) 1,212,003,023.83
2012 132,921,335 5 25 664,606,673 119,277,890.61 2,714,987.97 132,852,830.44 68,504.22 4,692,827,747.19
*Y= Historical Demand of Crackers from 2008 - 2012
Table 1.8: Projected Demand of Crackers Per Pack
PROJECTED DEMAND OF CRACKERS PER PACK
YEAR A B X Yc
2013 119,277,890.61 2,714,987.97 6 135,567,818
2014 119,277,890.61 2,714,987.97 7 138,282,806
2015 119,277,890.61 2,714,987.97 8 140,997,794
2016 119,277,890.61 2,714,987.97 9 143,712,782
2017 119,277,890.61 2,714,987.97 10 146,427,770



MARKETING ASPECT | 16


SUPPLY ANALYSIS
The supply analysis will show the historical and projected supply of the competitors using the statistical straight line
method.
Table 1.9: Supply of Competitors
SUPPLY OF COMPETITORS 2012
COMPETITORS RESPONDENTS PERCENTAGE RATIO
LESS
14.99%
ERROR
SUPPLY
SUPPLY IN
PACKED
CRACKERS
PERCENTAGE
SHARE IN
SUPPLY
Monde M.Y. San Corp. 103 26% 6,390 5,433 559,550 29,096,580 0.26
Monde Nissin Corp. 64 16% 6,390 5,433 347,681 18,079,428 0.16
Republic Biscuit Corp. 124 31% 6,390 5,433 673,633 35,028,892 0.31
Universal Robina Corp. 100 25% 6,390 5,433 543,252 28,249,107 0.25
Others 9 2% 6,390 5,433 48,893 2,542,420 0.02
TOTAL 400 100%

2,173,008 112,996,427 1.00

Table 1.11 shows the present number of supply of different players in the crackers industry namely Skyflakes
Cracker Sandwich of Monde M.Y. San Corporation, Voice of Monde Nissin Corporation, Rebisco Crackers by Republic
Biscuit Corporation, J ack & J ill Magic Flakes by Universal Robina Corporation, and other brands.





MARKETING ASPECT | 17


Table 1.10: Historical Supply of Competitors
HISTORICAL SUPPLY OF COMPETITORS
YEAR TOTAL SUPPLY IN PACKED
CRACKERS
2008 103,763,748
2009 105,985,829
2010 108,264,255
2011 110,600,585
2012 112,996,427
*For the computation of the Historical Supply of the Competitors, see Appendices

Table 1.11: Projected Supply of Competitors
PROJECTED SUPPLY OF COMPETITORS
YEAR A B x Yc
2013 101,398,135 2,308,011 6 115,246,202
2014 101,398,135 2,308,011 7 117,554,214
2015 101,398,135 2,308,011 8 119,862,225
2016 101,398,135 2,308,011 9 122,170,236
2017 101,398,135 2,308,011 10 124,478,248
*Yc = Projected Supply of Competitors for 2013 - 2017



MARKETING ASPECT | 18


DEMAND SUPPLY CONSOLIDATION

Figure 1.2

The graph shows the total demand, supply and gap for the year 2013 computed using statistical straight line
method. Demand gap for 2013 is 20,321,616 or equivalent to 15%. Base from statistical straight line method, there is
4.99% marginal error; proponents assumed 10% desired gaining 14.99% total percentage error.



Demand
135,567,818
Supply
115,246,202
Gap
20,321,616
MARKETING ASPECT | 19


DEMAND FOR CRACKERS WITH PHIL. MANGO RAVIOLI FILLING
Table 1.12: Demand For Crackers

Table 1.15 shows the demand for Crackers with Phil. Mango Ravioli Filling, the number of household reduced by
the total percentage of error plus % of willing to try the product.
To compute for the Total Percentage Error, we use the formula:

Total percentage error =Marginal Error +Desired Error
TPE =4.99 +10
TPE =14.99 %

Percentage precision is computed as follows,
Percentage Precision =100% - 14.99%
PP = 85.01%

Where Marginal Error is:
M.E =


M.E =
2,298,293400
2,298,293 (400)

M.E =0.0499 or 4.99 %

MARKETING ASPECT | 20


Table 1.13: Statistical Straight Line Method of Historical Demand of Crackers
STATISTICAL STRAIGHT LINE METHOD OF HISTORICAL DEMAND OF CRAKERS W/ PHIL. MANGO RAVIOLI
YEAR Y X X
2
XY A B Yc Y-Yc (Y-Yc)
2

2008 84,048,636 1 1 84,048,636 82,132,489.19 1,869,489.13 84,001,978.32 46,657.44 2,176,916,929.68
2009 85,848,522 2 4 171,697,044 82,132,489.19 1,869,489.13 85,871,467.45 (22,945.62) 526,501,695.65
2010 87,694,046 3 9 263,082,139 82,132,489.19 1,869,489.13 87,740,956.58 (46,910.38) 2,200,583,318.15
2011 89,586,474 4 16 358,345,894 82,132,489.19 1,869,489.13 89,610,445.71 (23,972.14) 574,663,711.53
2012 91,527,106 5 25 457,635,528 82,132,489.19 1,869,489.13 91,479,934.84 47,170.70 2,225,075,150.58
*Y= Historical Demand of Crackers in grams from 2008 - 2012
Table 1.14: Projected Demand of Crackers
PROJECTED DEMAND OF CRAKERS W/ PHIL. MANGO RAVIOLI FILLING
YEAR A B X Yc
2013 82,132,489.19 1,869,489.13 6 93,349,424
2014 82,132,489.19 1,869,489.13 7 95,218,913
2015 82,132,489.19 1,869,489.13 8 97,088,402
2016 82,132,489.19 1,869,489.13 9 98,957,891
2017 82,132,489.19 1,869,489.13 10 100,827,380
*Yc = Projected Demand of cracker per pack for 2013 2017
MARKETING ASPECT | 21


Table 1.15: Demand of Crackers with Phil. Mango Ravioli Filling
DEMAND OF CRAKERS W/ PHIL. MANGO RAVIOLI FILLING
YEAR GAP (%) DEMAND
2013 14.9900 13,993,079
2014 14.9900 14,273,315
2015 14.9900 14,553,551
2016 14.9900 14,833,788
2017 14.9900 15,114,024
*Demand = Gap (%) x Projected Demand of Crackers w/ Phil. Mango Ravioli Filling

The demand in Crackers with Phil. Mango Ravioli Filling varies by 85.01%
because it is already supplied by the competitors. The Company has the potential to
market the product with 14.99%

MARKET SHARE
Market share is the specific percentage of total industry sales of a particular
product or service achieved by a single company in a given period of time. It is used by
businesses to determine their competitive strength in a sector as compared to other
companies in the same sector.
Table 1.16: Production Capacity of Crackers with Phil. Mango Ravioli Filling
CRAKERS W/ PHIL. MANGO RAVIOLI
FILLING PRODUCTION CAPACITY
YEAR TOTAL (IN PACKS)
2013 1,436,947
2014 1,508,795
2015 1,584,234
2016 1,663,446
2017 1,746,618
*The production capacity of Crackers w/ Phil. Mango ravioli filling that is used to
compute the market share


MARKETING ASPECT | 22


Table 1.17: Supply of Crackers in Grams

SUPPLY IN GRAMS
BRAND 2013 2014 2015 2016 2017
Monde M.Y. San Corp. 29,675,897 30,270,210 30,864,523 31,458,836 32,053,149
Monde Nissin Corp. 18,439,392 18,808,674 19,177,956 19,547,238 19,916,520
Republic Biscuit Corp. 35,726,323 36,441,806 37,157,290 37,872,773 38,588,257
Universal Robina Corp. 28,811,551 29,388,553 29,965,556 30,542,559 31,119,562
Others 2,593,040 2,644,970 2,696,900 2,748,830 2,800,761
Gap before the entry 20,321,616 20,728,593 21,135,569 21,542,546 21,949,523
Mango Ravioli Crackers 1,436,947 1,508,795 1,584,234 1,663,446 1,746,618
Gap after the entry 18,884,669 19,219,798 19,551,335 19,879,100 20,202,904
TOTAL SUPPLY 116,683,150 119,063,008 121,446,459 123,833,682 126,224,866
TOTAL DEMAND 135,567,818 138,282,806 140,997,794 143,712,782 146,427,770
*Supply = Projected Supply of Competitors x Percentage in Supply of each brand

Table 1.18: Market Share of Competitors Crackers and Mango Ravioli Crackers

MARKET SHARE
BRAND 2013 2014 2015 2016 2017
Monde M.Y. San Corp. 21.89% 21.89% 21.89% 21.89% 21.89%
Monde Nissin Corp. 13.60% 13.60% 13.60% 13.60% 13.60%
Republic Biscuit Corp. 26.35% 26.35% 26.35% 26.35% 26.35%
Universal Robina Corp. 21.25% 21.25% 21.25% 21.25% 21.25%
Others 1.91% 1.91% 1.91% 1.91% 1.91%
Gap before the entry 14.99% 14.99% 14.99% 14.99% 14.99%
Mango Ravioli Crackers 1.06% 1.09% 1.12% 1.16% 1.19%
Gap after the entry 13.93% 13.90% 13.87% 13.83% 13.80%
TOTAL DEMAND 100.00% 100.00% 100.00% 100.00% 100.00%








MARKETING ASPECT | 23


MARKET SHARE OF COMPETITORS WITH PREMIERE FOODS COMPANY
(Mango Ravioli Crackers)

Figure 1.3


The chart shows the market shares of different cracker brands for the year 2013,
2014, 2015, 2016 and 2017 respectively. The present market brands show a stable
value on their market share as well as the gap on the market. However when Mango
Ravioli Crackers entered into the market, the gap had a significant increase since it is a
new product and its market share is also noticeable since its production is not in full
capacity. Therefore, an increase in the capacity is dependent on the market share.

Table 1.19: Market Share on Gap
MARKET SHARE ON GAP
BRAND 2013 2014 2015 2016 2017
Gap before the entry 20,321,616 20,728,593 21,135,569 21,542,546 21,949,523
Mango Ravioli Crackers 1,436,947 1,508,795 1,584,234 1,663,446 1,746,618
Gap after the entry 18,884,669 19,219,798 19,551,335 19,879,100 20,202,904
*Market Share on Gap (in 10 x 34g packed crackers) of Mango Ravioli Crackers

Monde M.Y. San
Corp.
21.89%
Monde Nissin
Corp.
13.60%
Republic Biscuit
Corp.
26.35%
Universal Robina
Corp.
21.25%
Others
1.91%
Mango Ravioli
Crackers
1.06%
Gap after the
entry of Premiere
Foods Company
13.93%
MARKETING ASPECT | 24


Table 1.20: Market Share Percentage on Gap
MARKET SHARE PERCENTAGE ON GAP
BRAND 2013 2014 2015 2016 2017
Mango Ravioli Crackers 7.07% 7.28% 7.50% 7.72% 7.96%
Gap after the entry of Mango
Ravioli Crackers
92.93% 92.72% 92.50% 92.28% 92.04%
*Percentage of Mango Ravioli Crackers = Mango Ravioli Crackers / Gap before the entry
*Percentage of Gap = Gap after the entry / Gap before

The chart presented is the market share percentage on gap of the Premier Foods
Company.
Figure 1.4





7.07%
92.93%
Premier Foods Company
Gap after the entry of
Premier Foods Company
MARKETING ASPECT | 25


Marketing Strategy
A. Target Market Strategy
This will be accomplished by distributing the product to different groceries
and supermarkets for the convenience of end-users in buying the product. The
company is going to use a demographic type of marketing strategy, which covers
25 km radius from the epicentre. As National Capital Region as the target
market, we have segmented the target to the consumers ages 5 and above.
B. Product
The proposed product will be first in the market that combines the
crunchiness of cracker sandwiched in thick and chewy 100% natural Philippine
Mango Ravioli filling. It is a potential variant in the line of crackers that contains
complex carbohydrates, vitamins A and C, Iron and Calcium in an affordable
price.

C. Price
Pricing strategy aims to achieve the pricing objectives. The price of the
product or service is the major factor that determines the market demand for the
item. Price will also affect the companys competitiveness against other company
and its market share. With this, pricing has a considerable bearing on companys
revenue and net profit.Premier Foods Co. pricing strategy will surely bring our
product at the market in a reasonable price.
Different factors are considered in order to establish the price of the product we
are offering, these are:
The cost of the product per quantity of other biscuit manufacturers in our
target market.
The cost of all raw materials and machines/equipment needed for producing
the product.
The transportation cost of the product to different distribution channels.
MARKETING ASPECT | 26


The cost of advertising and other promotions, salary and wages for the
workers and the total cost of putting up a business.
Table 1.21: Pricing
Description Cost
direct materials cost 8.85
direct labor cost 1.51
factory overhead cost 6.56
product cost 16.92
admin & marketing 2.09
mark up 10.15
total full cost price 29.16
VAT 12%
SRP 32.65
*mark up = 40%

D. Distribution Channel
The channel of distribution is important to get a good grasp of consumer
needs and to quickly provide products that meet the market demands. It
connects goods and services with end users. We prefer to distribute our product
in packs to our prospective channels that will ensure the company in establishing
growth of our business. The prospective channels that were going to use are the
following: groceries and supermarkets, convenience stores and public markets
within the 25km radius from the plant located in Mandaluyong City.







MARKETING ASPECT | 27


PREMIER
FOODSCOMPANY

END USER
GROCERIES
CONVENIENCE
STORE
SUPERMARKETS

Figure 1.5











Through these distribution channels, our company will be able to reach
and communicate with the consumers. We will give them an insight about our
new product so that they may be able to see its characteristics and marketability.
Also with the use of these channels, the company can easily introduce and
distribute the product to the market and make them one of our major clients.
Gaining trust and good business relations with our distributors will ensure us a
lasting and pleasant business interaction.

E. Advertising and Promotion
Our advertising strategy is to bring our product for the attention of
prospective and current consumers. Advertising is a non-personal form of
promotion that is delivered through selected media outlets that, under most
circumstances, require the marketer to pay for message placement. The best
approach for this is to think of it in terms of broadcasting through media and
which media will be the most effective in reaching the target market thats why
we planned to advertise our product by means of printed materials. Promotion
MARKETING ASPECT | 28


keeps the product in the minds of the customer and helps stimulate demand for
the product.
a. Posters and Print Ads
b. Newspaper Ads
c. Magazine Ads
d. Social Networking Sites Official Website (Facebook, Twitter)
e. Internet Advertisements
f. Free Samples/ Free Taste
g. Launching Event

In compliance to support our advertising and promotions activities, the
following advertising and promotion expenses will be used:
Table 1.22: Promotional Expense
Promotional Expense
Materials Description Quantity Unit Cost Total Cost
Sound System Services
Audio, Lights and
Enhancements
1 5000.00 5000.00
Priest and Honorarium
Offering and
Honorarium
1 2000.00 2000.00
Trade Hall Rent
3797 sq. m.
(Megatrade Hall)
1 30000.00 30000.00
Entertainers Host, Bands 4 15000.00 60000.00
Free samples
Packs of Mango
Ravioli Crackers
30 400.00/box 12000.00
Invitations 3'x4' 100 1.00 100.00
Streamers 5'x10' 4 500.00 2000.00
Flowers Stands 2 200.00 400.00
Food Catering Services 1 10000.00 10000.00
TOTAL

121500.00

MARKETING ASPECT | 29


The company will have its launching event that will promote the product to the
market. The company will invite representatives from the newspaper and television
firms and from our industry partners that will expand the awareness of the market to the
first product that the company is introducing. Table 1.19 shows the total promotional
expenses that the company will render.
In accordance with the advertising of the product, the Table 1.20and Table 1.21
shows the total advertising expenses that the company will render.
Table 1.23: Advertising Expense
Advertising Expense
Items Quantity Frequency Unit Cost Total Cost
Posters 1000 A3 Size 120.00 120000.00
Newspaper Ads 1
Minimum Size (Manila
Bulletin) for 6
Sundays
6216.00 37296.00
Sample/Free Taste 10
50 supermarkets
within the target
market
400.00/box 4000.00
TOTAL 161296.00
Table 1.25: Projected Advertising Expense
Advertising Expense
2013 2014 2015 2016 2017
161296.00 158070.08 154908.68 151810.50 148774.29
*The proponents assume that the advertising expense will decrease by 2% annually.
Sales Strategy
The company will persistently aim to improve our sales by having continuous
research about the current trends, needs and wants of the consumers. We will see to it
that our product will be acknowledged on the market through conducting promotional
activities such as free sampling to get the feedback of the consumers. Base on the
consumers preference, we will make inevitable improvements.


MARKETING ASPECT | 30



TERMS OF SALE
All transactions with the distributors and customers will be on cash basis. (terms
and conditions may apply)
The goods delivered to the distribution channels must be managed by the
owners of the store; they are the one who are responsible for selling and
promoting the noodle products.
Any non-purchased or non-moving goods must be returned to the manufacturers
as pull-outs.
Goods that are undesirable, beyond the standards, or any customer complaint
must be reported to the distributor/outlet within a week from the day of purchase.
Returned goods must be replaced immediately after inspecting the product
defect or source of complaint.
Any incident of returns or complaints must be reported until the next delivery of
goods.
Any product that has exceeded the allotted 4 months shelf life must be returned
to the manufacturers until the next delivery for the proper disposal.
SWOT Analysis
To ensure the success of a business, certain areas must be considered and
evaluated to be able to know the strengths, weaknesses, opportunities, and threats that
the business would possibly encounter.
Figure 1.3, labelled the SWOT Analysis, presents the considerations of the
Premier Foods Company with regards to its internal and external business
environments. These environments can directly or indirectly affect the behaviour and
strength of the business. Being able to identify these considerations makes the
manufacturers equipped to face future difficulties. In addition, with the anticipation of
threats and the identification of challenges, the manufacturers can plan strategically and
improve better.
MARKETING ASPECT | 31




Figure 1.6
Future Market Expansion
The Market Expansion step is that period when a company assesses current
markets, identifies untapped markets, and seeks opportunities for revenue growth
through new market opportunities. The market expansion step will result in estimates for
delivering new capabilities to current markets, and potential new markets for existing
products.
The Premier Foods Company will continue to expand to meet the needs, wants
and feedbacks of the market. The company plans to introduce more variants of crackers
that use other agricultural fruits of the country like Baguio strawberries, Bukidnon



STRENGTHS
1. It is the first cracker product that
introduces a fruit ravioli filling.
2. It is 100% natural mango ingredient
that will capture the taste of the
comsumers.
3. It promotes and encourage
consumers to buy our own agricultural
products.


OPPORTUNITIES
1. The curiosity of consumers in trying
new products in the market is an
opportunity to introduce the product and
create a name in the Industry.
2. The country is also promoting to
patronize our own product and thus it
could gain consumers.
WEAKNESS
1. The Company is in its introduction
stage in the business venture.
2. Loyalty of the consumers to the
Competitor's products.
3. Limited capital to operate
4. Tight competition in the food industry
5. Limited distribution channels.


THREATS
1. Competitors have established its
name in the market.
2. Unstable economic condition
3. The new and innovative products and
advertisements of our competitors.
4. Competitors have superior access to
channels of distribution.


SWOT
MARKETING ASPECT | 32


Pineapples and Benguet Lemons. Also, variants that comes in according to contents
and according to sizes.
Possible Marketing Problems and Alternatives
1. If the promotion of the product was unsuccessful, we will also try other
advertisement like television to inform better the consumers.
2. If the consumers have doubt in our product because of our campaign to promote
agricultural products of our country, we will inform/ educate them via
newspapers, leaflets and posters regarding the benefits of patronizing our
agricultural products and the impact of growth of mango industry in the country.
3. If the department stores and groceries declined to purchase our product, well
have our own outlet.






MANAGEMENT ASPECT | 32








MANAGEMENT
ASPECT












MANAGEMENT ASPECT | 33

Management Assumptions
The following assumptions were made in order to compute the administrative
expenses:
o The proponents assume that the annual salary will increase by 3% annually.
o The proponents assume that there is no work during legal holidays.
o The proponents assume that there are 11 legal holidays in a year.
o The proponents refer to the Proclamation Number 295, series of 2011 for the list
of legal holiday.
o The proponents used the current SSS Contribution table.
o The proponents used the table 2.8 as monthly gross salary reference.
o The proponents used the current PhilHealth Contribution Table.
o The proponents used the fixed P 100.00 HDMF Contribution.
o The proponents used the 13
th
month pay formula stated by the P.D. no. 851.
o The proponents assume that there are 12 months worked within the calendar
year.
o The proponents assume that the 13
th
month pay will increase by 3% annually.
o The proponents assume that the security expense will increase by 2% annually.
o The proponents assume that the janitorial expense will increase by 2% annually.

Management Aspect
Management plays an essential component in all business organization; it covers
a wide selection of different business functions and described as the body of those in
the position of administrative authority. Prior to this, proper utilizing of management
capacities of the business can lead to its success, or if not can show the way to its loss.
Furthermore, Management is the art and science of utilizing and coordinating all
available resources towards the accomplishment of organizational goal and objectives.
This segment covers all aspects of managing the business including the Companys
Profile, Form of Organization, Organization Requirements, Capitalization,
Organizational Structure, Duties and Responsibilities, and Management Policies and
Procedures.
MANAGEMENT ASPECT | 34

The objectives of this section are:
1. To convey the Companys mission, vision and objectives.
2. To determine the form of Business organization.
3. To know the duties and responsibilities of each member and personnel.
4. To know the different techniques and strategies in achieving the companys
goal.
5. To determine the legal aspects and proper guidelines of the proposed
business establishment.
Company Name and Logo

Premier Foods Company is generally a manufacturing company that produces
new variant of snack food under the brand name Delights, a name with consistent
quality, great value and fun in filling everyones snack needs. The name Premier
showcases the first company to offer the crunchiness of premium cracker sandwiched in
100% natural thick and chewy Philippine Mango Ravioli Filling.
The colours orange, yellow and red of the Premiers Logo
symbolizes the companys spirit of eagerness, inspiration at
work and passion for excellence. The two elliptic leaves
symbolize the companys surging forward on the winds of
innovative ideas, new mind set and ideas. The rising circle
represents how company recognizes and values the diversity and uniqueness of every
individual.


MANAGEMENT ASPECT | 35

Company Overview
The Premier Foods Company is a joint venture partnership form of food
manufacturing company established and agreed upon legal conditions by the
investment parties namely Grace Bugarin, Arlene Guillermo and Jay Vincent
Labrador. The business is an association of investors who share same risks and profits
through common terms. Established in 2013, Premier Foods Company is generally a
manufacturing company that produces new variant of snack food under the brand name
Delights, a name with consistent quality, great value and fun in filling everyones snack
needs. Its first variant, the Mango Ravioli Cracker is the first in the market that combines
the crunchiness of premium cracker sandwiched in 100% natural thick and chewy
Philippine Mango Ravioli Filling.
Premier Foods Companys processing and manufacturing facilities are efficient
and dependable. Here, quality biscuits are processed, packed and sealed under strict
quality control measures that ensure optimal standards and meeting product
specifications. The company also strives for excellence in marketing and distribution as
well. High impact advertising and promotions will build a strong market base and
effective distribution network that ensures product availability and recognition
nationwide.
With its all high trained technical, production and packaging personnel work
under firm supervision in order to produce good quality results, the company will
continue to strive in making different variants of biscuit that would bring new taste in the
market and could open more possibilities in bringing Philippine made products to the
international market.





MANAGEMENT ASPECT | 36

Company Vision
The company envisions itself as one of the leading manufacturing company in the
country in delighting the customers with exceptional quality and best value snack food
within your reach.
Company Mission
The Premier Foods Company is a company of happy and creative people striving for
excellence in providing quality snack food at competitive cost to uplift the lives of
consumers.
Company Values
Passion
We build organizational capability by being entrepreneurial and proactive, driven
by a sense of urgency and purpose. We continuously challenge ourselves to
deliver world-class brands and consistently rally our people to strive for
excellence.
Enthusiasm
We cultivate a culture of innovation and productive working relationships. We
continuously find ways to improve organizational and people capabilities to meet
constantly changing consumer needs.
Integrity
We are guided by transparency, ethics and fairness. We build the business with
honor and are committed to good governance. Our processes and products meet
the highest standards.
Teamwork
There is respect for one another and fun in working together for a common goal
and sharing inputs and ideas for the benefit of the company.



MANAGEMENT ASPECT | 37

Company Objectives
In line with the Vision and Mission of Premier Foods Company, the company
aims to:
To produce high quality and great value premium crackers that offers nutritional
value
To provide satisfaction in every consumer and responsive to their feedbacks and
preferences
To attain thoroughgoing profit from the continuous operation of ultramodern
processing and manufacturing facilities
To create a learning and interactive working atmosphere where the employees
could reach their full potential
Form of Business Organization
The form of business organization chosen by the contributors was Partnership,
wherein three persons unite themselves to contribute money and manage the business.
A partnership is two or more persons agree to furnish a part of the capital and labour,
operating a financial, for profit-making business enterprise.
The proponents decided to choose this type of ownership because of the
following reasons:
Partnerships are relatively easy to establish.
With more than one owner, the ability to raise funds may be increased,
both because two or more partners may be able to contribute more funds
and because their borrowing capacity may be greater.
Prospective employees may be attracted to the business if given the
incentive to become a partner.
Partnership may benefit from the combination of complementary skills of
two or more people. There is a wider pool of knowledge, skills and
contacts.
MANAGEMENT ASPECT | 38

Partnerships can be cost-effective as each partner specializes in certain
aspects of their business.
Partnerships provide moral support and will allow for more creative
brainstorming.
The associates have the inclusive rights to any profits coming from the
business.
Tax advantages
Partnership Legal Requirements
Beforehand, in order to formally launch a business the firm has to strictly comply
with the terms and conditions set by the government.
1. Secure Business Name with Securities and Exchange Commission (SEC)
The first step is to register your preferred corporate name with the SEC
while our lawyers work on the companys articles of incorporation and by-laws.
Once the AOI and by-laws are drafted, you may now open a TITF account with
preferred partner bank.
2. Opening of Company Bank Account
Companies applying for incorporation must open a TITF account with its
preferred bank. The TITF account will serve as a temporary depository account
of the required paid up capital of the corporation. The basic requirements for the
opening of TITF account include the proposed article of incorporation and by-
laws, account opening forms with the specimen signature card to be
accomplished by the treasurer-in-trust, valid identification cards of the treasurer-
in-trust and the minimum deposit required by the bank which ranges from
P10,000.00 to P50,000.00 depending on the bank requirement. The bank will
issue a certificate of deposit which is among the documentary requirements to be
submitted to SEC.

MANAGEMENT ASPECT | 39

3. Securities and Exchange Commission (SEC) Registration
Once a bank certificate of deposit is issued and provided the following
document requirements needed were already completed, the application for
registration may now be submitted to SEC.
Name Reservation and Payment Form
Notarized Articles of Incorporation and by-laws
Treasurers Affidavit
Bank Certificate of Deposit or Proof of Inward Remittance
Duly accomplished SEC Form (F-100),for corporations with more
than 40% foreign equity
SEC Registration takes 10 to 15 working days upon submission of
complete documentary requirements, if there is no holiday during this time period.
4. Bureau of Internal Revenue (BIR) Registration
After SEC Registration, a company must apply for a taxpayer identification
number (TIN), register its books of accounts and apply for authority to print
official receipts.
5. Social Security System (SSS) Registration
All companies must be registered with SSS and must secure an employer
number which will be used as a reference for the remittance of their monthly
contributions. The forms needed for registration are as follows:
Employer Registration Form (R-1)
Employment Report Form (R-1A)
SEC Registration, Articles of Incorporation and by-laws



MANAGEMENT ASPECT | 40

6. Phil-Health Registration
Phil-Health is the countrys Health Insurance Corporation. All employers
are required to register their employees with Phil-Health as stated in the New
National Health Insurance Act (RA 7875/RA 9241). This agency manages and
administers the government health care system in the Philippines. The following
documents are required by Phil-Health and as enumerated below:
Employer Data Record (ER1)
Report of Employee-Member (ER2)
SEC Registration, Articles of Incorporation and by-laws
7. Pag-IBIG Registration
Pag-IBIG Fund is also known as the Home Development Mutual Fund
which is mandatory for all employees covered by the Social Security System
(SSS). The Pag-IBIG Fund essentially provides various types of loans to the
members.
8. Mayors or Business Permit
The following are the documents required in order to secure a business permit:
SEC Registration documents (AOI, By-Laws, Certificate of Incorporation)
Locational Clearance
The following documents are required in order to secure a
locational clearance:
Location Map
Barangay Clearance
Lease Contract
SEC Registration documents
Occupancy Permit (Building/Unit)
Business Permit Application Form
MANAGEMENT ASPECT | 41

Pre Operations Timeline
It is important that before the start of business operations, strategic planning of establishing the business must be
conducted. In order to do this, the company recognized organizational structure from selection of business supported with
a feasibility study and the following company activities that will support the legality, manpower requirements, safe and
engineered plant facility, competitiveness and strong market impact of the company.
The proponents use Gantt chart to show the scheduling of company activities from selecting a business to be
established up to the normal start of operation.
Table 2.3: Pre-Operation Timeline
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1 Selection of Business to be Established
2 Project Feasibility
3 Selection of Plant Location
4 Secure Licenses and Permits of Business
5 Renovation of Selected Site
6 Acquisition and Installation of Equipment
7 Recruitment and Training of Employees
8 Pilot Run and Testing of Product
9 Advertisement of Business
10 Start of Operation
J an
Pre-Operation Timeline
J ul Aug Sept Oct Nov Dec
ACTIVITY


MANAGEMENT ASPECT | 42

Organizational Structure
General
Operations
Manager
Production
Head
Maintenance
Personnel
Production
Operator
Production
Worker
Quality
Control
Analyst
Finance Head
Finance Staff
Sales and
Marketing
Head
Sales and
Marketing
Staff
Logistics
Head
Inbound
Warehouse
Personnel
Outbound
Warehouse
Personnel
Purchasing
Staff
Human
Resource
Head
Human
Resource
Assistant
Driver
Security
Guard
MANAGEMENT ASPECT | 43

Manpower Distribution
Table 2.4: Manpower Distribution
POSITION NO. OF EMPLOYEES
GENERAL OPERATIONS
MANAGER
1
SALES AND MARKETING
HEAD
1
FINANCE HEAD 3
HUMAN RESOURCE HEAD 1
PRODUCTION HEAD 1
PRODUCTION OPERATOR 7
PRODUCTION WORKER 6
MAINTENCE PERSONNEL 1
QUALITY CONTROL
PERSONNEL
1
FINANCE STAFF 1
HR ASSISTANT 1
SALES AND MARKETING
STAFF
1
LOGISTICS HEAD 1
INBOUND WAREHOUSE
PERSONNEL
1
OUTBOUND WAREHOUSE
PERSONNEL
1
PURCHASING STAFF 1

Job Descriptions
A. General Partners
The general partners, who are also the owners of the firm, would be the head of
the chain of command. The company policies to be implemented, as well as decisions
regarding the company, would be determined and settled upon by the general partners.



MANAGEMENT ASPECT | 44

Table 2.5: General Partners
PARTNERS POSITION
Bugarin, Grace
GENERAL OPERATIONS
MANAGER
Guillermo, Arlene
SALES AND MARKETING
HEAD
Labrador, Jay Vincent FINANCE HEAD
B. General Operations Manager
Duties and Responsibilities:
Operations Manager is responsible for managing the day to day operations of the
company and making sure that major administrative and technical problems and
concerns of the company and its clients should be monitored and addressed
accordingly. It ensures that operations are being managed accordingly on a day-to-day
basis; finds a way to make the company more productive by providing effective methods
in its business operations. Accountable for the performance of direct reports by
coaching, creating and maintaining development plans, conducting performance
appraisals, recommending training and encouraging individual employee participation in
decision making. The operations manager reports directly to the General Manager.
Qualifications:
Candidate must be an Industrial Engineering or Management Engineering
graduate
Must be 23 45 years old
Must have effective oral and verbal communication skills
Knowledgeable in computer operation
With knowledge in manufacturing technology
Organized, focus and very analytical in work comprehension, reviewing and
organizing business plan
Must be result oriented and must be able to represent the company at his/her best

MANAGEMENT ASPECT | 45

C. Finance Head
Duties and Responsibilities:
Manage financial and administration activities to achieve financial goals.
Develop business plan, timeline and budget to perform financial projects.
Monitor and manage expenditures within allotted budget.
Develop and maintain standard financial and administrative procedures.
Respond to customer queries/issues in a timely manner.
Work closely with General Manager in preparation of business plan and
operational budget.
Review all invoices and make the relevant payments in a timely manner.
Review accounting discrepancies and recommend corrective actions.
Assist in implementing standard accounting policies.
Ensure the preparation and maintenance of all financial records.
Supervise preparation of all monthly and annual finance reports in a timely
fashion.
Supervise and manage payroll processing and tax filing activities.
Provide training and guidance to finance and admin teams as needed.
Develop overall goals for the finance and administration departments.
Identify and resolve financial and administrative issues.
Qualification:
Candidate must possess at least a Bachelor's/College Degree in
Finance/Accountancy/Banking or equivalent.
A Certified Public Accountant
At least 5 year(s) of working experience in the related field is required for this
position.
Preferably Assistant Manager / Managers specializing in Finance - General/Cost
Accounting or equivalent. J ob role in Management/Cost Accounting/Business
Analyst or Financial Accounting & Reporting.
MANAGEMENT ASPECT | 46


D. Sales and Marketing Head
The marketing head is responsible for the planning and implementing of strategic
marketing, business development efforts and sales activities.
Duties and Responsibilities
Responsible in planning on how to achieve sales and profit to be demanded
by the business.
Monitors how the target market responds to marketing efforts.
Build a comprehensive sales and marketing strategies with the bounds of the
companys objectives and goals.
Qualifications:
College Graduate; Preferably with Bachelor Degree in Business
Administration, Marketing, Industrial Engineering, or other related course
Minimum combined work experience of 8 years in Marketing or Sales
preferably in industries of consumer goods, telecoms, pharmaceuticals, and
consumer electronics
Must have at least 3 year experience in managing a team
Must be willing to do field-work

E. Human Resource Head
Duties and responsibilities:
Responsibilities include driving the HR Dept. to be a strategic business
partner of management in motivating its employees to increase productivity and to
attain effective work processes. The HR Manager will be in-charge of manpower
planning and recruitment, compensation and benefits, employee and labor relations,
training and development as well as managing HR systems such as Performance
Management System, Competency Management, Organization Development, J ob
Evaluation, Salary Structure and Employee Morale survey.
Qualifications:
MANAGEMENT ASPECT | 47

Candidate must possess at least a Post Graduate Diploma / Master's Degree in
Human Resource Management or equivalent.
Male or Female with at least 3 years of business experience
Not more than 40 years old
Excellent communication skills and leadership qualities
Strong presentation abilities
Must be a creative thinker and excellent team player
Must be a good initiator and possess good negotiation skills
F. LOGISTICS HEAD
Duties and Responsibilities:
Build-up a competitive logistics team and design/implement logistics in
accordance with current and future needs
Manage day to day logistics operations: areas of responsibility include fulfillment,
inbound logistics, warehousing processes (pick, pack, cycle count, etc),
outbound logistics warehouse, planning and forecasting
Manage contracts and relationship with 3rd party logistics service providers (e.g.
pick, pack, equipment, inbound/outbound trucking, etc)
Manage, improve and scale all logistics functions in accordance with companies
quality requirements on a high speed ramp up of operations
Analyze processes in regard to efficiency, operate data on a high quality level
Make reports derived from order data and find optimization possibilities
Manage recruiting, supervising, checking and promoting logistics staff
Liaise with several internal customers including buying, customer service, finance
and other key stakeholders
Adapt logistics to new strategies and relay the information to the rest of the
board.
Build-up and manage other logistic related topics if needed
Qualifications:
MANAGEMENT ASPECT | 48

Bachelors degree major in engineering, science, business administration is
appreciated
Male/Female 25 - 40 years old
Experience in logistics/warehousing for 3-5 years with proven track record
Experience in a consumer goods, retailing or e-commerce company is highly
appreciated
Experience in managing 3rd party logistics service providers is highly
appreciated
High analytical and communication skills
Ability to lead a team and successfully interact with different department as an
interface and coordinator
Ability to process/work fast under pressure

G. WAREHOUSE PERSONNEL
Duties and Responsibilities:
Responsible for receiving and monitoring of stocks.
In charge in checking, packaging and releasing of items
Responsible for maintaining the cleanliness on all areas and equipment used
Performing other tasks assigned
Qualifications:
Male, not more than 28 yrs. old
Candidate must possess at least a Vocational Diploma / Short Course Certificate,
Bachelor's/College Degree , Computer Science/Information Technology,
Business Studies/Administration/Management, Commerce, Engineering
(Computer/Telecommunication), Logistic/Transportation or equivalent.


MANAGEMENT ASPECT | 49

H. PRODUCTION OPERATOR
Duties and Responsibilities:
Run a production machine and understand its operation or assemble product to
customer specifications.
Maintain proper counts and complete labor cards correctly.
Report all scrap.
Assist the Production Supervisor/Lead Person in achieving scheduling
requirements.
Use and read measuring equipment as required. Includes micrometers, rules,
calipers, strip gauges, and pull tester.
Complete charting as required by Q.C. Department standards.
Work closely with Q.C. to assure conformity of product to customer requirements.
Assist in the maintenance of tooling and equipment.
Maintain a clean and safe work area.
Pursue ongoing goal of cost reductions.
Perform other related duties as assigned.
Qualifications:
Candidate must possess at least a High School Diploma, Vocational Diploma /
Short Course Certificate
At least 1 year(s) of working experience in the related field is required for this
position.
Male/Female 23 - 40 years old
Must be hardworking, honest and responsible.
Can work with minimum supervision.
With good communication skills.

MANAGEMENT ASPECT | 50

I. Quality Control Analyst
J ob Description:
Responsible on ensuring product quality
Coordinates with the Production Operations Manager and Production Planner
and Controller
Qualifications:
Must be an Industrial Engineering Graduate or other related course
Preferably with two year experience in food industry
Male / female, 25 35 years old
J. Finance Staff
J ob Description:
Ensures fully compliance in accordance to the regulatory requirements by
making use of professional accounting concepts and company policies to solve
accounting issues. Handle all expenditure, investment, collection and credit
transactions of the company.
Duties and Responsibilities:
Responsible for the tract of cash flows.
Responsible for the general accounting functions. (Payables, treasury, tax and
general ledger).
Effectively evaluate the financial needs of the business.
Responsible in managing of budget and budget approvals.
Ensure compliance with all government requirements/updated on recent tax
rulings and BIR issuances and SEC requirements.
Handle and maintain accounting records and other related documents.
MANAGEMENT ASPECT | 51

Organize and facilitates the process of documenting accounting policies and
procedures.
Qualifications:
Candidate must possess at least a Bachelor's/College Degree in
Finance/Accountancy/Banking or equivalent.
At least two year(s) of working experience in the related field is required for this
position.
Preferably finance/accounting personnel specializing in Finance - General/Cost
Accounting or equivalent. J ob role in Management/Cost Accounting/Business
Analyst or Financial Accounting & Reporting.

K. Sales and Marketing Staff
Job Description:
Responsible for developing, implementing and leading successful sales within a
targeted market- projects
Formulate marketing strategies to boost competency of the company
Responsible for formulating marketing strategies of the company
Qualifications:
Must be a Business course graduate preferably major in Marketing or equivalent
Must have at least 2 years of experience
He / she can speak in English fluently
Male/Female, 25 30 years old

L. Maintenance Personnel
Job Description:
Responsible for general maintenance and repair of companys property
MANAGEMENT ASPECT | 52

Qualifications:
Must be a technical course graduate or mechanical and electrical vocational
graduate
Must have vast knowledge in electrical and mechanical maintenance
Preferably with experience in troubleshooting of machines and electrical
breakdown
Male, between 25 35 years old

M. Human Resource Assistant
The Human Resources assistant assists with the administration of the day-to-day
operations of the human resources functions and duties. The HR assistant carries
out responsibilities in some or all of the following functional areas: departmental
development, HRIS, employee relations, training and development, benefits,
compensation, organization development, executive administration, and
employment.
Qualifications:
Candidate must possess a Bachelors Degree in Human Resource Management,
Psychology or equivalent
Male or Female with at least 3 years of business experience
Not more than 40 years old
Excellent communication skills and leadership qualities
Strong presentation abilities
Must be a creative thinker and excellent team player
Must be a good initiator and possess good negotiation skills

N. Production Workers
Job Description:
Responsible for the direct processing of the product
MANAGEMENT ASPECT | 53

He/She have an initiative for orderliness and cleanliness in the production area.
He/She is also responsible for the machine maintenance and condition, make
preventive maintenance on simple plant equipment, tools and machineries if
necessary.
Qualifications:
Must be at least a high school graduate.
Must be at least 18 to 35 years of age.
Physically fit in good health
Must be of good moral character

O. Company Driver
Duties and Responsibilities:
Coordinate and work with team members in providing the needs of the machine
everyday
Coordinate daily transactions with the companys employees
Maintain maintenance tools and equipment
Perform other tasks as assigned by your direct report from time to time
Qualifications:
Candidate must possess at least a High School Diploma, Vocational Diploma /
Short Course Certificate, any field.
Applicants must be willing to work in Manila.
Professional Drivers license
with 2 years related experience
Can read and write
MANAGEMENT ASPECT | 54

Defensive Driver
Fresh graduates/Entry level applicants are encouraged to apply.
P. Security Guard
Duties and Responsibilities:
Having familiarity with rules and regulations of the building or facility they are
working in
Protecting all buildings, contents, employees, and others who enter the facility by
ensuring that security rules and regulations are enforced
Directing traffic in and around the building or the property
Monitoring security systems; including alarms, metal detector machines, gates,
and more
Inspecting vehicles and packages for potential contraband
Conducting safety inspections in order to ensure things are running smoothly
Keeping good records related to traffic in and out of the build or facility, records
related to security procedures, and records related to incident reports.
Qualifications:
Candidate must possess at least a High School Diploma, Vocational Diploma /
Short Course Certificate, any field.
Male, 24 - 40 yrs. old
At least 5 year(s) of working experience in the related field is required for this
position.
Preferably Supervisor / 5 years & Up Experienced Employees specializing in
Manufacturing/Production Operations or equivalent.
At least 4 years experience as a Security Guard from a reputed company.


MANAGEMENT ASPECT | 55

Company Rules and Policies
Premier Foods Company believes in providing equal employment opportunities
to all applicants and employees, depending upon our operational needs. The policies
and procedures are set to prohibit conflicts of interest; protecting companys confidential
and proprietary information, treating employees fairly, protecting and properly using
company assets, and to discourage in showing unlawful or unethical behaviour.
Operating Days and Hours
The companys business operation will start from 8:00 in the morning up to 5:00
in the afternoon, Monday to Saturday. Lunch break period is from 12:00- 1:00 pm and
also a 15-minute break in the morning from 10:00-10:15 and 3:00-3:15 in the afternoon.
Table 2.6: Operating Days and Hours
OPERATING DAYS
OPERATING
HOURS
TOTAL
HOURS
Monday 8:00 - 5:00 8
Tuesday 8:00 - 5:00 8
Wednesday 8:00 - 5:00 8
Thursday 8:00 - 5:00 8
Friday 8:00 - 5:00 8
Saturday 8:00 - 5:00 8

Hiring Policy
All applicants must complete an employment application. The Company may
also require a resume' and letters of reference depending on the position being
applied for. An employment application is enclosed at the end of the manual. An
application must be completed before an applicant will be considered a candidate.
MANAGEMENT ASPECT | 56

Following the Company's review of all completed applications, the employer
will begin interviewing the most qualified candidates. Those who do not meet our
employment requirements for whatever reason will remain classified as applicants.
Applicants may apply once each month for candidate status.
The Company will make conditional offers of employment to those candidates
selected during the interview process. The conditional aspect of the job offer
depends on the employee's agreeing to acknowledge company policies in writing,
consenting and passing all necessary drug, background and reference checks and
finally any other condition that should be met before the candidate may consider
themselves an employee.
Following an acceptance of an offer of employment, all new employees will be
given a start date and location to report for an orientation session. Orientation is
paid. During the orientation, the new employees will be given workplace rules,
policies and other information about their positions. Authorization forms and policies
must be signed at this time BEFORE actual work is performed and before they are
sent for a meeting with their new department manager.
Pre-Employment and Medical Examination
All qualified and selected applicants for hiring shall undergo pre-
employment medical examination and must submit the following pre-employment
requirements:
Formal Education Documents
Certified True Copy of complete Transcript of Records (TOR)
Certified True Copy of Diploma
Personnel Requirements
2x2 and 1x1 ID pictures (2 copies each size)
Photocopy of Birth Certificate
Police/NBI Clearance
MANAGEMENT ASPECT | 57

Certification from Previous Employer/s and Clearance (If any)
Medical Certificate
Government Records
SSS No. or SSS ID (photocopy)
Tax Identification No. (TIN) ID
Philippine Health Insurance (Philhealth) No. and ID (photocopy)
Pag-ibig Members Data Form (photocopy)
Attendance and Punctuality
The company require the employees to render at least 44 hours of work per
week. There are no offices during Sundays and legal holidays. The company has the
same office hours for everybody. Attendance and punctuality must be observed in
the company. Every absence without filing official leave and coming late during work
hours correspond to specific penalty. This is intended to encourage the employees
to practice punctuality on their work.
All employees are required to log into the logbook every time they arrive and
leave the company.
The company will give a 15-minute grace period for every employee in the
morning. Thus, anyone who registers a time in of 8:16 is considered 16
minutes late.
Tardiness is excused when brought about by circumstances beyond control
(typhoons and floods).
Too much or unacceptable reason of absenteeism is not allowed.
Vacation/Sick Leaves
The company allows the employee to avail 15 day vacation leave and 15 day
sick leaves annually if the employee have completed one year of service in the
company. The employee must file a vacation leave to the human resource one week
before the leave. It will be authorized once it was approved by the human resource
MANAGEMENT ASPECT | 58

and the superior of the employee. In terms of sick leave, the employee must call
their superior one hour before the operation hour starts.
Paid Leaves
There are other paid leaves, namely: birthday leaves, maternity leaves and
paternity leaves.
Maternity leaves are available for pregnant women employees regardless
of civil status but only for the first four deliveries 60 days for normal
deliveries and 78 days for caesarean. The employee must file a maternity
leave in the human resource one week before the leave.
Paternity leaves may only be enjoyed by married male employees for the
first four births of their legal wives if they are living together.

Code of Ethics and Conduct
Code of conduct may be used as a guide in recognizing work ethics, proper
practices of employees and to promote a good working environment.
1. Always be loyal to the company. There is no moral basis for continuing the
employment if the employee cannot be loyal to the employer. Loyalty
influences your overall attitude and conduct towards your work.
The employee should not be involved in any competing business or
products whether one-time or on a continuing basis, for free or on
paid capacity.
The employee should not furnish anybody with false and
confidential information about the Company and its employees,
particularly competitors. The highly confidential files should never
be taken out from the office.
The employee should not directly or indirectly receive any sum of
money, commission, offer, or gifts in consideration of any act
connected with your discharge of your official duties.
MANAGEMENT ASPECT | 59

2. Always comply with office related directives of your superiors and the
management. The employee should not wilfully slow down the work nor
compromise prescribed work standards.
3. Clients, suppliers and all companies/persons where the company have
existing and prospective business relations should never be used or taken
advantage of, particularly for the employees personal purposes.
4. Company property should not be wasted, destroyed, damaged or lost due
to carelessness, negligence or wilful destruction.
5. Courtesy and respect should always be accorded clients, suppliers, fellow
employees, office visitors, and all companies and persons where we have
existing or business relations at all times and places.
6. The following conduct will NOT be tolerated:
Possession of dangerous/prohibited firearms inside office premises.
Drinking and being intoxicated with alcoholic substance while at
work inside the companys premises.
Using prohibited/regulated drugs and substances while at
companys premises.
Fighting or any form of physical aggregation and commission of a
crime towards clients, suppliers, co-employees, superiors and their
representatives and their families.
Gambling or any game of chance inside the companys premises.
Conduct of or participating and/or organizing such unauthorized
organizations and meetings inside companys premises.
Failure to observe safety and security procedures and guidelines
inside companys premises including the warehouse.
Smoking in prohibited areas.
Unauthorized solicitation and distribution of any form of literature
during office hours.
Improper and/or not wearing prescribed uniform prescribed by the
company.
Sexual harassment
MANAGEMENT ASPECT | 60

Disorderly conduct, scandalizing rioting or any behaviour disturbing
peace and order in the company.
Commission of a crime towards superiors and co-employees
Conviction of a crime requiring an imprisonment of more than one
month.
Sleeping, loitering during normal business hours.
Wasteful use of electricity, water, office supplies and all company
resources.
7. Any form of fraud during application and employment periods , fraudulent
acts, falsification of documents and theft will be dealt with severely.
8. The employee may be suspended or dismissed if suffering from a
communicable, contagious or debilitating disease that may not have cured
during a six month period.

Standard Operating Procedure
Here is the policies and procedure which is intended to provide general
guidance.
1. Prescribed Attire and Uniform
Maintain a neat, well-groomed, and professional appearance. Always
wear the update Company Identification Card (ID). Wearing of SLIPPERS IS
NOT ALLOWED in the Office/Plant.
Only direct workers will be provided the proper working attire. The company
will provide an apron, a hairnet, gloves and a pair of closed boots for each
worker. They are obliged to wear it upon entering the production area to avoid
contamination of Mango Ravioli Crackers. Failure to comply wearing proper
working attire inside the vicinity of production will be subjected to disciplinary
actions. On the other hand, administrative employees should come to work
wearing polo for males and blouse for females, and slacks for their bottoms.
Indirect workers must dress according to their nature of work.
MANAGEMENT ASPECT | 61

Working Shirt Apron
Working Pants Working Head Cap
Working Gloves Safety Shoes
MANAGEMENT ASPECT | 62

2. Good Housekeeping
Practice of 5s Philosophy is Implemented. 5S is the name of a workplace
organization method that uses a list of
five J apanese words: seiri, seiton, seiso, seiketsu, and shitsuke. Transliterated or
translated into English, they all start with the letter "S" namely sorting, stabilizing,
sweeping, standardizing and sustaining the practice. 5S Philosophy focuses on
effective work place organization, simplifies work environment, reduces waste
while improving quality and safety.
3. Safety
The company believes in maintaining safe and healthy working conditions
for our employees. However, to achieve our goal of providing a safe
workplace, each employee must be safety conscious. We have established
the following policies and procedures that allow us to provide safe and
healthy working conditions. We expect each employee to follow these policies
and procedures, to act safely.
Maintaining a safe worksite. We expect employees to establish and
maintain a safe worksite.
Using Safety Equipment. Where needed, the company provides its
employees with appropriate safety equipment and devices. You are
required to use the equipment provided in the manner designated as
proper and safe.
Reporting an injury and unsafe condition or practices. Employees are
required to report any injury, accident, or safety hazard immediately to
their management. Employees are expected to continually be on the
lookout for unsafe working conditions or practices.
Hazard Communication. If you believe that you are dealing with a
hazardous material and lack the appropriate information and/or safety
equipment, contact your supervisor immediately.
MANAGEMENT ASPECT | 63

Administrative Expenses
Salaries and Wages
Table 2.8: Monthly Gross Salary
Position No. of
Employees
Monthly Salary
2013 2014 2015 2016 2017
GENERAL OPERATIONS
MANAGER
1 24830.00 25574.90 26342.15 27132.41 27946.38
FINANCE HEAD 1 21190.00 21825.70 22480.47 23154.89 23849.53
HUMAN RESOURCE HEAD 1 21190.00 21825.70 22480.47 23154.89 23849.53
FINANCE STAFF 3 13650.00 14059.50 14481.29 14915.72 15363.20
HR ASSISTANT 1 11856.00 12211.68 12578.03 12955.37 13344.03
LOGISTICS HEAD 1 13650.00 14059.50 14481.29 14915.72 15363.20
SALES AND MARKETING
HEAD
1 21190.00 21825.70 22480.47 23154.89 23849.53
SALES AND MARKETING
STAFF
1 13650.00 14059.50 14481.29 14915.72 15363.20
PRODUCTION HEAD 1 21190.00 21825.70 22480.47 23154.89 23849.53
PRODUCTION OPERATOR 7 11856.00 12211.68 12578.03 12955.37 13344.03
PRODUCTION WORKER 8 11856.00 12211.68 12578.03 12955.37 13344.03
MAINTENCE PERSONNEL 1 11856.00 12211.68 12578.03 12955.37 13344.03
QUALITY CONTROL ANALYST 1 11856.00 12211.68 12578.03 12955.37 13344.03
PURCHASING STAFF 1 11856.00 12211.68 12578.03 12955.37 13344.03
INBOUND WAREHOUSE
PERSONNEL
1 11856.00 12211.68 12578.03 12955.37 13344.03
OUTBOUND WAREHOUSE
PERSONNEL
1 11856.00 12211.68 12578.03 12955.37 13344.03
*The proponents assume that the monthly salary will increase by 3% annually.
MANAGEMENT ASPECT | 64

Table 2.9: Annual Gross Salary
Position
No. of
Employees
Yearly Salary
2013 2014 2015 2016 2017
GENERAL OPERATIONS
MANAGER
1 278,860.00 287,225.80 295,842.57 304,717.85 313,859.39
FINANCE HEAD 1 237,980.00 245,119.40 252,472.98 260,047.17 267,848.59
HUMAN RESOURCE HEAD 1 237,980.00 245,119.40 252,472.98 260,047.17 267,848.59
FINANCE STAFF 3 459,900.00 438,007.50 451,147.73 464,682.16 478,622.62
HR ASSISTANT 1 133,152.00 137,146.56 141,260.96 145,498.79 149,863.75
LOGISTICS HEAD 1 153,300.00 157,899.00 162,635.97 167,515.05 172,540.50
SALES AND MARKETING
HEAD
1 237,980.00 245,119.40 252,472.98 260,047.17 267,848.59
SALES AND MARKETING
STAFF
1 153,300.00 157,899.00 162,635.97 167,515.05 172,540.50
PRODUCTION HEAD 1 237,980.00 245,119.40 252,472.98 260,047.17 267,848.59
PRODUCTION OPERATOR 7 932,064.00 743,033.76 765,324.77 788,284.52 811,933.05
PRODUCTION WORKER 8 1,065,216.00 890,513.28 917,228.68 944,745.54 973,087.90
MAINTENCE PERSONNEL 1 133,152.00 137,146.56 141,260.96 145,498.79 149,863.75
QUALITY CONTROL ANALYST 1 133,152.00 137,146.56 141,260.96 145,498.79 149,863.75
PURCHASING STAFF 1 133,152.00 137,146.56 141,260.96 145,498.79 149,863.75
INBOUND WAREHOUSE
PERSONNEL
1 133,152.00 137,146.56 141,260.96 145,498.79 149,863.75
OUTBOUND WAREHOUSE
PERSONNEL
1 133,152.00 137,146.56 141,260.96 145,498.79 149,863.75
*The proponents assume that the daily salary will increase by 3% annually.


MANAGEMENT ASPECT | 65

13
th
Month Pay
Based on the Presidential Decree No. 851, employees are entitled of 13
th
month pay to be given not later
than December 24 of every year regardless of the amount of their salary provided that have worked for at least one
month during the calendar year.
Table 2.10: 13
th
Month Pay
Position
No. of
Employees
2013 2014 2015 2016 2017
GENERAL OPERATIONS MANAGER 1 24830.00 25,574.90 26,342.15 27,132.41 27,946.38
FINANCE HEAD 1 21190.00 21,825.70 22,480.47 23,154.89 23,849.53
HUMAN RESOURCE HEAD 1 21190.00 21,825.70 22,480.47 23,154.89 23,849.53
FINANCE STAFF 3 13650.00 14,059.50 14,481.29 14,915.72 15,363.20
HR ASSISTANT 1 11856.00 12,211.68 12,578.03 12,955.37 13,344.03
LOGISTICS HEAD 1 13650.00 14,059.50 14,481.29 14,915.72 15,363.20
SALES AND MARKETING HEAD 1 21190.00 21,825.70 22,480.47 23,154.89 23,849.53
SALES AND MARKETING STAFF 1 13650.00 14,059.50 14,481.29 14,915.72 15,363.20
PRODUCTION HEAD 1 21190.00 21,825.70 22,480.47 23,154.89 23,849.53
PRODUCTION OPERATOR 7 11856.00 12,211.68 12,578.03 12,955.37 13,344.03
PRODUCTION WORKER 6 11856.00 12,211.68 12,578.03 12,955.37 13,344.03
MAINTENANCE PERSONNEL 1 11856.00 12,211.68 12,578.03 12,955.37 13,344.03
QUALITY CONTROL PERSONNEL 1 11856.00 12,211.68 12,578.03 12,955.37 13,344.03
PURCHASING STAFF 1 11856.00 12,211.68 12,578.03 12,955.37 13,344.03
INBOUND WAREHOUSE
PERSONNEL
1 11856.00 12,211.68 12,578.03 12,955.37 13,344.03
OUTBOUND WAREHOUSE
PERSONNEL
1 11856.00 12,211.68 12,578.03 12,955.37 13,344.03
*The proponents used the 13
th
month pay formula stated by the P.D. no. 851 (see appendices)
*The proponents assume that the 13
th
month pay will increase by 3% annually.
MANAGEMENT ASPECT | 66

Social Security System Contribution
One of the benefits that Premier Foods Corporation can provide to its employees is Social Security.
Contributions would depend on the employees monthly salary range and to be deducted to their salary. These
contributions would be remitted by the company to SSS together with the employers contribution.
Table 2.11: SSS Employers Contribution
Position
No. of
Employees
Year
2013 2014 2015 2016 2017
GENERAL OPERATIONS MANAGER 1 13,080.00 13,080.00 13,080.00 13,080.00 13,080.00
FINANCE HEAD 1 13,080.00 13,080.00 13,080.00 13,080.00 13,080.00
HUMAN RESOURCE HEAD 1 13,080.00 13,080.00 13,080.00 13,080.00 13,080.00
FINANCE STAFF 1 34,344.00 35,614.80 36,889.20 38,160.00 38,160.00
HR ASSISTANT 1 10,296.00 10,296.00 10,719.60 11,144.40 11,568.00
LOGISTICS HEAD 1 11,568.00 11,991.60 12,416.40 13,080.00 13,080.00
SALES AND MARKETING HEAD 1 13,080.00 13,080.00 13,080.00 13,080.00 13,080.00
SALES AND MARKETING STAFF 1 11,568.00 11,991.60 12,416.40 13,080.00 13,080.00
PRODUCTION HEAD 1 13,080.00 13,080.00 13,080.00 13,080.00 13,080.00
PRODUCTION OPERATOR 7 71,232.00 71,232.00 74,197.20 77,137.20 80,136.00
PRODUCTION WORKER 6 61,056.00 61,056.00 63,597.60 66,117.60 68,688.00
MAINTENANCE PERSONNEL 1 10,296.00 10,320.00 10,719.60 11,144.40 11,568.00
QUALITY CONTROL PERSONNEL 1 10,296.00 10,332.00 10,719.60 11,144.40 11,568.00
PURCHASING STAFF 1 10,296.00 10,344.00 10,719.60 11,144.40 11,568.00
INBOUND WAREHOUSE
PERSONNEL
1 10,296.00 10,356.00 10,719.60 11,144.40 11,568.00
OUTBOUND WAREHOUSE
PERSONNEL
1 10,296.00 10,344.00 10,719.60 11,144.40 11,568.00
*The proponents used the current SSS contribution table and table 2.8 as monthly salary reference (see appendices)
MANAGEMENT ASPECT | 67

PhilHealth Contribution
Philhealth would be providing the health insurance of our employees. Contributions are done in the same
manner as that of the SSS. Employee contributions would be deducted from their salaries and would be remitted
by the company together with the corresponding employers contribution.
Table 2.12: PhilHealth Contribution
Position
No. of
Employees
Year
2013 2014 2015 2016 2017
GENERAL OPERATIONS
MANAGER
1 3,600.00 3,750.00 3,900.00 4,050.00 4,050.00
FINANCE HEAD 1 3,150.00 3,150.00 3,300.00 3,450.00 3,450.00
HUMAN RESOURCE HEAD 1 3,150.00 3,150.00 3,300.00 3,450.00 3,450.00
FINANCE STAFF 3 5,850.00 6,300.00 6,300.00 6,300.00 6,750.00
HR ASSISTANT 1 1,650.00 1,800.00 1,800.00 1,800.00 1,950.00
LOGISTICS HEAD 1 1,950.00 2,100.00 2,100.00 2,100.00 2,250.00
SALES AND MARKETING HEAD 1 3,150.00 3,150.00 3,300.00 3,450.00 3,450.00
SALES AND MARKETING STAFF 1 1,950.00 2,100.00 2,100.00 2,100.00 2,250.00
PRODUCTION HEAD 1 3,150.00 3,150.00 3,300.00 3,450.00 3,450.00
PRODUCTION OPERATOR 7 11,550.00 12,600.00 12,600.00 12,600.00 13,650.00
PRODUCTION WORKER 6 9,900.00 10,800.00 10,800.00 10,800.00 11,700.00
MAINTENANCE PERSONNEL 1 1,650.00 1,800.00 1,800.00 1,800.00 1,950.00
QUALITY CONTROL PERSONNEL 1 1,650.00 1,800.00 1,800.00 1,800.00 1,950.00
PURCHASING STAFF 1 1,650.00 1,800.00 1,800.00 1,800.00 1,950.00
INBOUND WAREHOUSE
PERSONNEL
1 1,650.00 1,800.00 1,800.00 1,800.00 1,950.00
OUTBOUND WAREHOUSE
PERSONNEL
1 1,650.00 1,800.00 1,800.00 1,800.00 1,950.00
*The proponents used the current PhilHealth Contribution Table and 2.8 as monthly salary reference (see appendices)
MANAGEMENT ASPECT | 68

PAG-IBIG (Home Development Mutual Fund Contribution)
PAG-IBIG can provide housing loans to employees. Contributions are fixed at P100.00 every month.
Table 2.13: HDMF Contribution
Position
No. of
Employees
Year
2013 2014 2015 2016 2017
GENERAL OPERATIONS MANAGER 1 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
FINANCE HEAD 1 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
HUMAN RESOURCE HEAD 1 1,200.00 3,600.00 1,200.00 1,200.00 1,200.00
FINANCE STAFF 3 3,600.00 1,200.00 3,600.00 3,600.00 3,600.00
HR ASSISTANT 1 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
LOGISTICS HEAD 1 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
SALES AND MARKETING HEAD 1 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
SALES AND MARKETING STAFF 1 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
PRODUCTION HEAD 1 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
PRODUCTION OPERATOR 7 8,400.00 8,400.00 8,400.00 8,400.00 8,400.00
PRODUCTION WORKER 6 7,200.00 7,200.00 7,200.00 7,200.00 7,200.00
MAINTENANCE PERSONNEL 1 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
QUALITY CONTROL PERSONNEL 1 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
PURCHASING STAFF 1 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
INBOUND WAREHOUSE
PERSONNEL
1 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
OUTBOUND WAREHOUSE
PERSONNEL
1 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
*The proponents used the fixed P 100.00 HDMF Contribution and table 2.8 as monthly salary reference (see appendices)


MANAGEMENT ASPECT | 69

Yearly Net Pay
Table 2.14: Yearly Net Pay
Position
No. of
Employees
Yearly Net Pay
2013 2014 2015 2016 2017
A
d
m
i
n
i
s
t
r
a
t
i
v
e

GENERAL OPERATIONS
MANAGER
1 268,371.54 276,591.67 285,062.77 293,792.37 302,933.91
FINANCE HEAD 1 227,928.56 235,067.96 242,275.87 249,704.38 257,505.80
HUMAN RESOURCE HEAD 1 227,928.56 235,067.96 242,275.87 249,704.38 257,505.80
FINANCE STAFF 1 144,996.63 137,358.84 141,545.46 145,862.32 150,363.47
HR ASSISTANT 1 125,722.67 129,571.56 133,491.34 137,535.71 141,560.38
LOGISTICS HEAD 1 144,996.63 149,255.34 153,798.86 158,483.32 163,363.10
Selling
SALES AND MARKETING
HEAD
1 227,928.56 235,067.96 242,275.87 249,704.38 257,505.80
SALES AND MARKETING
STAFF
1 144,996.63 149,255.34 153,798.86 158,483.32 163,363.10
Direct
PRODUCTION HEAD 1 227,928.56 235,067.96 242,275.87 249,704.38 257,505.80
PRODUCTION OPERATOR 7 125,722.67 129,621.72 133,594.17 137,693.81 141,776.46
PRODUCTION WORKER 6 125,722.67 129,621.72 133,594.17 137,693.81 141,776.46
Indirect
MAINTENCE PERSONNEL 1 125,722.67 129,571.56 133,491.34 137,535.71 141,560.38
QUALITY CONTROL
ANALYST
1 125,722.67 129,571.56 133,491.34 137,535.71 141,560.38
PURCHASING STAFF 1 125,722.67 129,571.56 133,491.34 137,535.71 141,560.38
INBOUND WAREHOUSE
PERSONNEL
1 125,722.67 129,571.56 133,491.34 137,535.71 141,560.38
OUTBOUND WAREHOUSE
PERSONNEL
1 125,722.67 129,571.56 133,491.34 137,535.71 141,560.38


MANAGEMENT ASPECT | 70

Manpower Fee
The company will outsource the security services in a security agency and also the janitorial services in
manpower/integrated services agency.
Table 2.15: Security Expense
SECURITY EXPENSE

No. of
Employee
Daily
Salary
Monthly
Salary
2013 2014 2015 2016 2017
Security Guard
(Day Shift)
1 456 11,856.00 142,272.00 146,540.16 150,936.36 155,464.46 160,128.39
Security Guard
(Night Shift)
2 547.20 28,454.40 341,452.80 351,696.38 362,247.28 373,114.69 384,308.13
TOTAL SECURITY
EXPENSE
40,310.40 483,724.80 498,236.54 513,183.64 528,579.15 544,436.52
*The proponents assume that the security expense will increase by 3% annually
Table 2.16: Janitorial Expense
JANITORIAL EXPENSE

2013 2014 2015 2016 2017
Janitor (5) 686,280.00 706,868.40 728,074.45 749,916.69 772,414.19
TOTAL JANITORIAL
EXPENSE
686,280.00 706,868.40 728,074.45 749,916.69 772,414.19
*The proponents assume that the janitorial expense will increase by 3% annually.



TECHNICAL ASPECT | 71








TECHNICAL
ASPECT










TECHNICAL ASPECT | 72

Technical Assumptions
The following assumptions were made in order to compute the technical
expenses:
o The proponents assume that the production capacity increases by 5% annually.
o The proponents assume that the cost of raw materials will increase by 2%
annually.
o The proponents assume that the cost of packaging materials will increase by 2%
annually.
o The proponents assume that there is no increase in the production equipment for
the next four years
o The proponents assume that there is no increase in the office equipment for the
next four years
o The proponents assume that there is no increase in office supplies for the next
four years
o The proponents assume that there is no increase in safety supplies in the next
four years
o The proponents assume that there is no increase in janitorial supplies for the
next four years.
o The proponents assume that the utilities expense for the plant will increase by
2% annually.
o The proponents assume that the utilities expense for the office will increase by
2% annually.
o The proponents assume that the transportation expense for the office will
increase by 2% annually.





TECHNICAL ASPECT | 73

Technical Aspect
This chapter discusses the entire venture which includes manpower, materials
and equipment used and the activities included in the business to effectively and
efficiently deal with the services offered to the customers. This aspect identifies whether
the services could bring a highest possible quality level that will meet customers
satisfaction with a minimum cost value. Furthermore, the design structure of the building
will also be drafted and interpreted in this section.
Objectives:
1. To present the general description of the service programs.
2. To know where the business should be located.
3. To identify the machineries and equipment as well as their specifications.
4. To determine the production capacity of the company.
5. To determine the labor requirements and manufacturing materials.
6. To clearly state the service process including the Flow Process Chart and its
technical description
7. To show the structure of plant layouts including the electrical and sanitary layout.
8. To determine the labor requirements and service programs of the company.

Product Description
Trade Mark
The product logo was conceptualized by the proponents
themselves. The logo shows the companys vision in delighting
the customers with exceptional quality and best value snack
food within your reach.
Physical Properties
Physical properties are any aspect of an object or
substance that can be measured or perceived without changing its identity.

TECHNICAL ASPECT | 74

Cracker specifications:
Appearance - Rectangle with uniform partitions and
laminated holes
Color - light brown
Weight - 34g; 25g for crackers, 9 g for the filling
Size - 90 mm x 55 mm
Thickness - 15mm

Manufacturing Process
1. Premium Crackers
a. Preparation of Raw Materials
Raw materials are being carried out from the storage room to be use in the
production area.
b. Weighing of Raw Materials and Ingredients
The raw materials must be weighted according to the right amount needed for
the production.
c. Dough Mixing and Fermentation
This is the stage of mixing the flour, water and yeast essentially in a conventional
mixer for about 6 minutes. The sponge is added to the remaining ingredient and
mixed for 3 6 minutes. It must allow fermenting in troughs at 78 - 84 F (25 - 29
C) for about 3 to 6 hours. The action of this fermentation is believed to modify the
dough properties, making it more extensible, less elastic and thus easier to
sheet.
d. Rotating and Sheeting
The fermented dough undergoes in rotating rolls and sheeted into 8 layers with a
combined thickness of about 0.1 inches (2mm).
e. Lamination
The sheeted dough is laminated and scored partway through to form the
individual crackers without separating them. The dough is docked and stamped
TECHNICAL ASPECT | 75

with pins, to form the pattern of holes that holds the lamination together and
prevent the cracker from separating into layers.
f. Baking
Baking takes place at about 450 - 600F (210 - 315 C) for 2 4 minutes in a
tunnel oven. The high temperature produces steam that expands the volume of
the crackers, and the crackers move through the oven on wire mesh that allow
moisture to escape from both sides.
g. Cooling
After baking, the crackers are allowed to cool for about a minute. This will allow
the crackers to have 2 2.5 moisture content when packed.

2. Mango Ravioli Filling
a. Preparation of Raw Materials
Raw materials are being carried out from the storage room. The materials
are weighed according to the amount needed for the production. The
liquids are coming out from stainless tanks and are machine operated. It
will be transported through pipes to the boiling tank.
b. Vacuum Boiling
The mango puree, sugar, citric acid and water are mixed and heated in a
vacuum boiler at a lower temperature range of 65 - 76 C for 1.5 to 2 hours.
The vacuum boiling minimizes the undesirable changes in color and
prevents loss of vitamin C.
c. Vacuum Emulsifying
Vacuum emulsifying is one of the important steps in jelly manufacturing. It
causes the union of sugar, acid, and pectin to form a jelly. Pectin is best
added by adding slowly the pectin to a heated but not boiling fruit juice. A
temperature of 170 - 180 F (76 - 82C) for 0.5 to 1 hour is necessary to
reach the consistency of ravioli filling.
d. Pipe Transporting
The fruit jelly is being transported to the sandwiching machine through
pipes.
TECHNICAL ASPECT | 76

3. Sandwiching
Place the cooled cracker in the docks of sandwiching machine. The sandwiching
machine is fully automated to make the crackers have its filling and layering
according to its desired amount of filling and specifications.
4. Cooling and Inspection
In this process the sandwiched crackers are then passed on to cooling conveyors
for natural cooling prior to packing. The temperatures are brought down to room
temperatures. Natural cooling is preferred over forced cooling as it maintains the
texture quality of crackers. Metal detector is installed in the belt to detect whether
the cracker is contaminated by a metal foreign material. Visual inspection is also
done in random pick while cooling the product.
5. Packaging
The sandwiched crackers are packed individually in a sealing machine. The
packed crackers are then put into secondary packaging by 10.
6. Boxing/Casing
The pack of 10s are boxed and sealed. It will be transported to the warehouse
for dispatching/delivering to companys distribution channels.









TECHNICAL ASPECT | 77

Manufacturing Flow Chart
Figure 3.1

*Flow chart of manufacturing premium cracker, from preparation of raw materials to
fermentation
Process Description Machine Materials
Energy
Requirement
Ingredients
Wheat Flour
Shortening
Emulsifier
Sugar
Salt
Calcium Acid
Sodium Carbonate
Water
2
Weighing of
Ingredients
Digital
Platform
Balance
Ingredients 0.15 Kw
30 Kw
Main Motor
0.75 Kw
Brake Motor
Dough (Mixed
Ingredients)
4
Fermentation of
Dough
Fermentation
Room
Dough (Mixed
Ingredients)
4.7 Kw Floor
Mounted Air
conditioner
1
All materials
needed in
production is
being pulled out
from storage
room
Manual N/A
3
Mixing of
Ingredients
Dough Mixer
Preparation
Weighing
Dough
Mixing
Fermentation
1
TECHNICAL ASPECT | 78

Figure 3.2

*Flow chart of manufacturing premium cracker, from sheeting to cooling.

Process Description Machine Materials
Energy
Requirement
5
Rolling the dough
and sheeting
according to
standard size
Dough
Sheeter
Dough
(Mixed
Ingredients)
8.5 Kw
6
Lamination of
Mixed Dough
Dough
Laminator
Dough
(Mixed
Ingredients)
5.1 Kw
7 Baking of Crackers Oven
Dough
(Mixed
Ingredients)
11 Kw Burner
and
Extraction
Fan
5.5 Kw
Geared
Motor
1.85 Kw
Stacker
Geared
Motor
8
Baked crackers is
being cooled
Cooling
Conveyor
Crackers
(Baked
Unfilled
Crackers)
1
Sheeting
Lamination
Baking
Cooling
2
TECHNICAL ASPECT | 79


Figure 3.3

*Flow chart of manufacturing mango ravioli filling, from preparation of raw materials to
vacuum emulsifying.
Figure 3.4
Process
Number
Process Description Machine Materials
Energy
Requirement
Ingredients
Mango Puree
Glucose Syrup
Citric Acid
Pectin
Water
2
Measuring of
Ingredients
Weighing
Scale;
Machine
Operated
Chamber
Tanks
Mango Puree,
Glucose Syrup,
Citric Acid, Water
0.15 kw
weighing
scale,
4
Adding of Pectin
Solution and
Emulsification of
ravioli filling
Vacuum
Emulsifier
Pectin Solution,
Heated Mango
Puree Solution
17.2 Kw
1
All materials
needed in
production is being
pulled out from
storage room
N/A N/A
3
Boiling of juice and
acid
Vacuum
Boiler
Mango Puree,
Glucose Syrup,
Citric Acid, Water
Preparation
Measuring
Boiling
Vacuum
Emulsifying
2
TECHNICAL ASPECT | 80


*Flow chart of manufacturing mango ravioli cracker, from sandwiching to packaging in
boxes.
Plant Capacity and Production Schedule
The business starts on the regular shift day on its first year of operation. There
will be three hundred three working days annually with a full capacity of 5928 packs of
Mango Ravioli Cracker output per day. Taking the 80% of the Capacity, the plant
capacity will be 4742 pack. On the following year, proper adjustments will be done and
adding of workers if it is necessary needed on the growth of the business.
Number of production days: 303 days
Monday to Saturday 8:00 AM to 5:00 PM
Number of Working Hours: 8 hours





Process Description Machine Materials
Energy
Requirement
9
Filling of
Mango Ravioli
in crackers
Sandwiching
Machine
Crackers, Filling
18 Kw
Sandwiching
Machine
Crackers
Aluminun Foil
Packed Crackers
Plastic Pack
Hot Sealer
Box
10
Crackers are
packed
Sealing
Machine
1.3 Kw
Packaging
Bundle
Packing by 10's
Manual
0.15 kw Hot
Sealer
Packaging
Sandwiching
2
TECHNICAL ASPECT | 81

Table 3.1: Production Capacity
Year Daily Annual
2013 4742 1436947
2014 4980 1508795
2015 5228 1584234
2016 5490 1663446
2017 5764 1746618
*The proponents assume that the production capacity increases by 5% annually.
Table 3.2: Standard and Requirements of Mango Ravioli Cracker
Process Machine
Machine
Capacity
Material Balance
Cycle
Time
Inspection
and
Preparation
of Raw
Materials
Manual N/A N/A
10
mins
Weighing of
Ingredients
Digital
Weighing
Balance/
Manual
270 kg
maximum
capacity
181436 g wheat flour
15
mins
15422 g shortening
680 g emulsifier
10886 g sugar
1361 g salt
1361 g sodium
bicarbonate
1134 g calcium acid
phosphate
58.06 L water
Dough
Mixing
Dough Mixer
450 kg of
dough
capacity
270340 g mixed
ingredients
6 mins
Fermentation
Fermentation
Room
10-12
fermentation
tubs
270340 g mixed
ingredients
240
mins
Sheeting
Dough
Sheeter
7200
crackers/min
32454 crackers
4.51
mins
Laminating
Dough
Laminator
7200
crackers/min
32454 crackers
4.51
mins
Baking Tunnel Oven
5400
crackers/min
32454 crackers
6.01
mins
Cooling
Cooling
Conveyor
4000
crackers/min
32454 crackers
8.11
mins
Sandwiching
Sandwiching
Machine
724
crackers/min
10818 crackers w/ filling
7.62
mins
TECHNICAL ASPECT | 82

Primary
Packaging
Packaging
Machine
240
packs/min
10818 crackers w/ filling
45.08
mins
Secondary
Packaging
Manual

1082 pack of 10's
20.04
mins
TOTAL TIME
367
mins

Table 3.2: Standard and Requirements of Mango Ravioli Filling
Process Machine
Machine
Capacity
Material Balance
Cycle
Time
Inspection and
Preparation of
Raw Materials
Manual N/A N/A 8 mins
Measuring of
Ingredients
Machine
Operated
Chambers,
Digital
Weighing
Scale
350 L
maximum
capacity;
270 kg.
maximum
capacity
124 L Mango Puree;
48.9 L Glucose Syrup,
8.7 L Citric Acid, 7.3 kg
Pectin, 12.1 L Water
12
mins
Vacuum Boiling
Boiling
Tank
520L
maximum
capacity
Mango Puree Solution
120
mins
Vacuum
Emulsifying
Vacuum
Emulsifying
Tank
520L
maximum
capacity
Pectin Solution; Mango
Puree Solution
90
mins
TOTAL TIME
230
mins
*This table shows the flow of manufacturing Mango Ravioli Filling and is parallel during
the production of the cracker.
There is a total of 367 minutes of production per batch. Production schedule will
be composed of 4 batches to maximize time and use of machine per day. Daily
operation can produce a plant capacity of 5928 packs because every batch can produce
a maximum output of 1482 packs. Taking the 80% line efficiency, the company could
produce 4742 packs a day. The remaining 1 hour and 18 minutes after 4 batches of
production is intended for cleaning of the whole plant because proper sanitation of the
workplace of a food industry is necessary.


TECHNICAL ASPECT | 83

Manufacturing Equipment
1. DIGITAL PLATFORM WEIGHING SCALE

This equipment is used for weighing ingredients
needed in producing the product.
Features:
20mm LED Display
Weight value holding
Power Consumption: 0.15Kw ; built-in
rechargeable battery
Specifications:
300/500kgx50/100g capacity
500x600(mm)
2. DOUGH MIXER

This machine is used for mixing various
ingredients such as flour, sugar, fat, water,
and other substances for making dough.
Features:
No through shaft, avoiding sticking
of the dough, ensuring better hygiene.
Lubrication system for greasing all
the points.
Heavy-duty bearings for counter-
shafts.
Inching function with safety features for removing the dough after mixing.
Beater speeds 40 (fast) / 20 (slow) rpm.
Power Consumption : 30.75Kw


TECHNICAL ASPECT | 84

Specification:
450 kg of dough capacity
2400x1300x830(mm)

3. DOUGH SHEETER
Specifications:
o Total width of 1440mm and thickness of 4-
10mm able to be regulated, dough sheet can be
produced with 10 - 12 rows, each row with the
width of 120mm.
o Be suitable to pressing and producing dough
sheet with different dimension and thickness,
automatically rolling up sheet, also can be
equipped with dumpling machine.
o Dough sheet is rolling up after being cut separately with powder spreading
automatically.
o It is adjustable speed, unmanned operation during course of working, stable
working performance.
o Main body is made by super stainless steel, easy to clean, good appearance,
meet the food sanitary standard.
Power Consumption: 8.5KW
Production speed017m/min
Weight: 5000Kg
DimensionLWH 1220014401330 mm







TECHNICAL ASPECT | 85

4. DOUGH LAMINATOR
o More layers of dough sheets can be
laminated at a faster rate in an elderly manner
and the width of dough sheets can be easily
adjusted. The operation is simple, convenient
and intelligent; the machine can operate without
any fault for a very long time.
o The fat/flour dust spray machine uses
the brush roller to enhance the fat/flour dust
spray effect.
o Continuous laminating, the number of
layers and dough sheet thickness are adjustable.
o The quantity and position where the fat/flour dust is sprayed are adjustable using
the variable frequency speed regulating motor.
Specifications:
o Power Consumption : 5.1kw
o 2050x1440x1960 (mm)
5. PRISM OVEN

o Feed Roller is driven by motor and gear
box
o Moulding Roller is driven by gear on the
Feed Roller
o Gap between Moulding and Feed Rollers
is manually adjustable using worm & worm wheel
arrangement
o Feed Hopper with safety grill in stainless
steel
TECHNICAL ASPECT | 86

o Scraper height is adjustable using a spring-operated handle with locking facility
on graduated segment. Scraper knife 5.4 mm thick
o Scrap Dough Cross Conveyor provided below the Scraper which is driven by
geared motor Side plates 58 mm thick and machined to high accuracy.

Specifications:
o 1985x2185x2385 (mm)
o Power Consumption : 11Kw

6. COOLING CONVEYOR

Cooling conveyor is for duly baked and after oil
sprayed biscuits with fixed speed conveyed to
the next production step.This step may enable
the natural cooling of the bked biscuits as well
as the fix in shape of the biscuits.

Features:
o Mechanical tensioning and tracking
systems
o All rollers fitted with sealed ball bearings in mild steel with outside dia. machined
o End section frames at biscuit turning points made from heavy-duty structural
angles
Specifications:
o 1985x2185x2385(mm)
o Power Consumption: 16.75Kw





TECHNICAL ASPECT | 87

7. SANDWICHING MACHINE
This automatic biscuit sandwiching machine with
two lines has been designed and manufactured
by advanced technology and devices. All the
parts of the production are made up of high
quality stainless steel. The main electronic
components are imported from abroad. Feature
with advantages of reliable performance and
easy operation. They are suitable for
sandwiching cream, jam, chocolate and butter in
various flavors between biscuits. Two colors
sandwich or two types of material sandwich at the same time is available.

Features:
o Cream/jam fed by pump smoothly and steadily.
o Cream/jam tub with automatic heating and temperature-keeping functions.
o Lane width is adjustable, suitable for wide range of biscuits.
o Speed can be adjusted rapidly by frequency converter; cream/jam quantum is
adjustable.
o Uniquely designed rotary star gear device stack the sandwiched biscuit well for
packing.

Specifications:
o 1985x2185x2385(mm)
o Power consumption: 18 Kw




TECHNICAL ASPECT | 88

8. FRUIT VACUUM EMULSIFYING MACHINE
It is composed of emulsification boiler
(fluctuating cover, overturn kettle form or
outside circle form), water boiler, oil water,
vacuum system, heating and temperature
control systems, cooling systems, electric
machinery control systems. etc.
Features:
o Equipment includes oil boiler, water
boiler, emulsification kettle, vacuum
equipment, temperature system, cooling system and operation platform
o Suitable for heating, melting, mix, homogenizing and vacuum emulsification
o Easy to operate
o Steady, efficient and automatic
Specifications:
o Emulsifying rack (L x W x H): 2,500 x 1,350 x 3,230 / 4,560m
o Water boiler and oil boiler rack (L x W x H): 2,500 x 1,150 x 1,950m
o Table (L x W x H): 2,500 x 850m
o Overall (L x W x H): 3,650 x 3,420 x (3,230 - 4,560)
o Power consumption: 17.2 K

9. PACKAGING MACHINE
This machine is used to pack the Mango
Ravioli Crackers individually.

Features:
o Micro-computerized control
system, with human-machine interface.
TECHNICAL ASPECT | 89

o Automatic malfunction sensing.
o Sealing temperature and time can be set automatically.
o Unique pressurizing equipment provides degassing sealing, resisting
moisture and dust.

Specifications:
o 1900x1600x1500(mm)
o Power Consumption : 1.3Kw























TECHNICAL ASPECT | 90

Plant Location and Facilities
Figure 3.4



Site Location
TECHNICAL ASPECT | 91

A thorough and comparative analysis for each potential location was made to
determine the most ideal plant site. The plant of Premier Foods Company will be
located at 1502 Sheridan Street corner Pine Street, Coating Industries of the Philippines
Compound, Mandaluyong City.
Located in the heart of the Mandaluyong Central Business District, this
warehouse is in close proximity to the business and commercial establishments within
the vicinity. It is a very short drive away from EDSA, and is immediately accessible to
and from the main thoroughfare. Ample parking spaces are provided for to the front and
west of the property. A sizeable entrance ensures that large vehicles can be
comfortable accommodated. Inside, the warehouse has an area of 1200 square meters
across three spacious areas. Each area can be open or partitioned off from the other
two, allowing a satisfactory degree of flexibility in planning spaces. Provisions for
electricity and water supply are already provided for, as well as spaces for toilets and an
office. The interiors are currently unfurnished and ready for finishing.
In order to follow the provisions under the food safety act, as well as safety and
health of the workers, proper renovation of the plant must be done before the start of
the operation. Table 3.3 shows the renovation expense that the company will render.
Table 3.3: Renovation Expense
Renovation Expense
Total 1,800,000.00
Labor Cost 720,000.00
Overall 2,520,000.00
* Plant size = 1,200 sq. m
* 1 sq. m = Php 1,500.00






TECHNICAL ASPECT | 92



Figure 3.5: Floor Plan
TECHNICAL ASPECT | 93

Figure 3.6: Lighting Layout


TECHNICAL ASPECT | 94

Figure 3.7: Power Layout



TECHNICAL ASPECT | 95

Figure 3.8: Plumbing Layout





TECHNICAL ASPECT | 96

Raw Materials and Supplies
Premier Foods Company ensures that the raw materials and supplies in making
mango ravioli cracker are finest and is in good quality.

The supplies and materials used in making crackers are:
o All Purpose Wheat Flour It is blended wheat flour with protein content lower
than bread flour, ranging between 9% and 12%. It is usually a blend of the two,
and can range from low protein content to moderately high. It is marketed as an
inexpensive alternative to bakers' flours which is acceptable for most industrial
baking needs.
o Shortening - Shortening is any fat that is solid at room temperature and used to
make crumbly pastry. The reason it is called shortening is that it prevents cross-
linkage between gluten molecules. Cross linking gives dough elasticity.
o Emulsifier In dough, emulsifier reduces shortening requirements, helps even
distribution of ingredients in dough, stabilizes fermentation, increases volume,
protects yeast cells in dough when frozen, and acts as a releasing agent to
prevent sticking and simplify cleaning. It improves wetting properties and helps
complete dispersion in water.
o Sugar - It is an important contributor to flavor by interacting with other
ingredients. Depending on the food application, it has the unique ability to
heighten flavor or depress the perception of other flavors. In bakery products,
sugar is recrystallized as water is removed during baking, resulting in a crisp
texture. This crispness is increased by the effects of browning.
o Salt - It modifies flavor, increases crust color and controls the rate of yeast
fermentation and enzyme activity. It also strengthens gluten, making it more
cohesiveness and less sticky. With salt present, gluten holds more water and
carbon dioxide, allowing the dough to expand without tearing. This means that
salt prevents excessive tearing when gluten stretches so bread is easier to
handle and has a better volume and a finer crumb.
o Sodium Bicarbonate It produces fluffiness in the breads and makes them like
sponge and they get soft. It is a more efficient leavening agent in baking. It is
TECHNICAL ASPECT | 97

also used as an additive in foods to provide effervescence (a bubbling, fizzing, or
sparkling effect) or to maintain an acidic environment in the food. The acidity
provides a sharp taste and helps to preserve a food.
o Water It plays an important part in the fermentation of the dough mainly from
two standpoints. It makes possible the pliable and extensible properties of the
dough so that in this form it can be raised by the carbon dioxide gas resulting
from yeast activity. The activity of the yeast itself also requires the presence of
water.
o Mango Puree - It is smooth paste of pulp of mango, usually yellow-orange in
color. It is processed by many companies and sold readymade.
o Glucose Syrup - It is extremely popular in the sweet manufacturing business. It is
extensively used in confectionery as a doctoring agent to prevent crystallization.
Being a non-crystallizing substance, it helps produce homogenous confectionery
like chewing gums and chocolates. It provides a smooth texture, possesses
good preservative qualities for a longer shelf life and has several desirable
organoleptic properties.
o Citric Acid - It is used as a flavoring in many preparations of Vitamin C, and has a
wide variety of other uses. In industry, citric acid can be used to make good
natural cleaners. It is used as a flavor enhancer. It is to create a slightly tart,
refreshing flavor and balance sweetness. The acid adds a bite that normal
flavoring extracts lack, and makes the candy taste much more natural.
o Pectin Due to its physical and chemical nature, it has high water-holding
capacity. Because of this property and texture it imparts, it is used as gelling
substances in making jams (eg. apple or apricot jams) and thickening foods. It is
an important ingredient in industrial yogurt, cakes, ketchup, and fruit jelly.
Table 3.4: Cost of Raw Materials per Batch
Materials Quantity
per batch
Unit Cost Cost per
Batch
Wheat Flour 181.44 19.40 3,519.86
Shortening 15.42 5.75 88.68
TECHNICAL ASPECT | 98

Emulsifier 0.68 91.75 62.39
Sugar 10.89 50.00 544.31
Salt 1.36 9.20 12.52
Sodium Bicarbonate 1.36 14.00 19.05
Calcium Acid Phosphate 1.13 28.00 31.75
Water 56.16 3.03 170.16
Mango Puree 94.00 76.00 7,144.00
Glucose Syrup 18.90 16.60 313.74
Citric Acid 4.20 29.00 121.80
Pectin 7.30 67.00 489.10
Table 3.5: Projected Cost of Raw Materials
Raw Materials Annually
2013 2014 2015 2016 2017
14,770,483.87 15,065,893.54 15,367,211.41 15,674,555.64 15,988,046.76
*The proponents assume that the cost of raw materials will increase by 2% annually.
Table 3.6: Cost of Packaging Materials
Material Quantity
Unit
Cost
Total Cost Annual Cost
Ordering
Schedule
Plastic Foil 9 482.00 4,338.00 225,576.00 Weekly
Packing Bags 39,627 0.25 9,906.75 515,151.00 Weekly
Box (16" 10" x6" ) 1,402 35.00 49,070.00 2,551,640.00 Weekly
Packaging Tape 35 17.25 603.75 31,395.00 Weekly
TOTAL

63,918.50 3,323,762.00


Table 3.7: Projected Cost of Packaging Materials
Packaging Materials
2013 2014 2015 2016 2017
3,323,762.00 3,390,237.24 3,458,041.98 3,527,202.82 3,597,746.88
*The proponents assume that the cost of packaging materials will increase by 2%
annually.


TECHNICAL ASPECT | 99

Equipment and Supplies
Table 3.7: Production Equipment
Materials Quantity Unit Cost Total Cost
Useful
Life
Depreciation
Platform Scale 2 pcs 15,800 31,600.00 10 3,160.00
Dough Mixer 1 pc 180,000 180,000.00 20 9,000.00
Dough Sheeter 1 pc 184,800 184,800.00 20 9,240.00
Dough Laminator 1 pc 220,000 220,000.00 20 11,000.00
Baking Oven 1 pc 549,000 549,000.00 20 27,450.00
Cooling Conveyor 1 pc 155,000 155,000.00 20 7,750.00
Vacuum Emulsifier 1 pc 344,000 344,000.00 20 17,200.00
Sandwiching Machine 1 pc 365,500 365,500.00 20 18,275.00
Sealing Machine 1 pc 175,000 175,000.00 20 8,750.00
Conveyor 4 pcs 15,000 60,000.00 20 3,000.00
Industrial Fan 8 pcs 8,000 64,000.00 10 6,400.00
Industrial Exhaust Fan 5 pcs 3,300 16,498.75 10 1,649.88
Floor Mounted Aircon 1 pc 27,799.25 27,799.25 10 2,779.93
TOTAL

2,373,198

125,654.80
*The proponents assume that there is no increase in the production equipment for the
next four years
Table 3.8: Office Equipment
Materials Quantity Unit Cost Total Cost Useful Life Depreciation
Window Type Aircon 8 20,899.00 167,192.00 10 16,719.20
Floor Mounted Aircon 2 27,799.25 55,598.50 10 5,559.85
Bundy Clock 1 7,400.00 7,400.00 10 740.00
Computer 8 16,488.00 131,904.00 10 13,190.40
Printer 4 3,200.00 12,800.00 5 2,560.00
Fax Machine 2 4,495.00 8,990.00 5 1,798.00
TOTAL

383,884.50

23,848.25
*The proponents assume that there is no increase in the office equipment for the next
four years.



TECHNICAL ASPECT | 100

Table 3.9: Office Furniture
Materials Quantity Unit Cost
Total
Cost
Useful
Life
Depreciation
Office Desk 10 1,499.00 14,990.00 10 1,499.00
Chair (Manager) 7 1,094.00 7,658.00 5 1,531.60
Chair (Employee) 17 995.00 16,915.00 5 3,383.00
Chair (Monoblock) 27 349.00 9,423.00 5 1,884.60
Sofa Set 2 5099.00 10,198.00 5 2,039.60
File Cabinet 9 2,495.00 22,455.00 10 2,245.50
TOTAL

81,639.00

12,583.30
Table 3.10: Office Supplies
Item Quantity Unit
Cost per
unit
Total
Cost
Flourescent Lights 36 pcs 94.75 3,411.00
Pendant Light 28 pcs 129.00 3,612.00
Calculator 10 pcs 220.00 2,200.00
Bondpaper (Long) 24 rim 170.00 4,080.00
Bondpaper (Short) 24 rim 140.00 3,360.00
Ballpen (Black) 3 box 200.00 600.00
Ballpen (Red) 3 box 200.00 600.00
Stapler 12 pcs 135.00 1,620.00
Staple Wire 24 box 20.00 480.00
File Holder 40 pcs 95.00 3,800.00
Folder (Long) 12 rim 269.00 3,228.00
Folder (Short) 12 rim 269.00 3,228.00
Letter Tray 6 pcs 200.00 1,200.00
Purchase Order Slip 100 pad 94.00 9,400.00
Requisition Slip 100 pad 61.00 6,100.00
Delivery Receipt Slip 50 pad 56.00 2,800.00
Voucher 100 pad 94.00 9,400.00
Scotch Tape 24 pcs 15.00 360.00
Pencil 10 box 124.00 1,240.00
Correction Fluid 10 pcs 38.00 380.00
Fastener 4 box 30.50 122.00
Scissors 12 pcs 20.00 240.00
Ink Cartridge 24 pcs 580.00 13,920.00
Tape Dispenser 12 pcs 50.00 600.00
Telephone 8 pcs 550.00 4,400.00
TECHNICAL ASPECT | 101

Puncher 8 pcs 100.00 800.00
Total

81,181.00
*The proponents assume that there is no increase in office supplies for the next four
years
Table 3.11: Safety Supplies
Materials Quantity Unit
Unit
Cost
Total
Cost
Fire Extinguisher 12 pcs 1,000.00 12,000.00
First aid box 3 pcs 100.00 300.00
Medical Plaster 3 boxes 96.00 288.00
Alcohol 12 bottles 27.75 333.00
Disinfectant 12 bottles 46.50 558.00
Cotton 10 packs 20.75 207.50
Gauze 12 packs 33.00 396.00
Medical tape 12 pcs 71.25 855.00
First Aid Cabinet 3 pcs 1,000.00 3,000.00
TOTAL

17,937.50
*The proponents assume that there is no increase in safety supplies in the next four
years.
Table 3.12: Janitorial Supplies
Item Quantity
Total
Cost
Broom - Office 4 280
Broom - Production 6 420
Dust Pan 6 270
Trash bin - small 6 1,200
Trash bin - big 3 1,500
Mop 4 280
Door mat 12 300
Round rags 500 500
Scrubber 12 120
Pail 4 280
Dipper 4 160
Detergent soap 24 1,680
Hand soap 24 720
Total

7,710
*The proponents assume that there is no increase in janitorial supplies for the next four
years.
TECHNICAL ASPECT | 102

Table 3.13: Electricity Expense Plant
Materials Quantity
Power
(Kw)
Hours
/day
Total
KwHour
Kw/Hour
Rate
Daily
Cost
Annual
Cost
Fluorescent
Light
51 pcs 2.04 8 16.32 0.69 574.30 174,013.14
Compact
Fluorescent
Light
12 pc 0.18 8 1.44 0.69 11.92 3,612.73
Platform Scale 1 pc 0.15 1.8 0.27 8.08 2.18 661.02
Dough Mixer 1 pc 30.75 1.6 49.2 8.08 397.54 120,453.41
Dough Sheeter 1 pc 8.5 1.6 13.6 8.08 109.89 33,296.06
Dough
Laminator
1 pc 5.1 1.6 8.16 8.08 65.93 19,977.64
Baking Oven 1 pc 11 1.64 18.04 8.08 145.76 44,166.25
Cooling
Conveyor
1 pc 7.35 2.16 15.87 8.08 128.28 38,868.26
Vacuum
Emulsifier
1 pc 17.2 14 240.80 8.08 1,945.66 589,536.19
Sandwiching
Machine
1 pc 18 7.44 133.92 8.08 1,082.07 327,868.30
Sealing
Machine
1 pc 1.3 12.4 16.12 8.08 130.25 39,465.63
Hot Sealer 5 pcs 2.5 12.4 31 8.08 1,252.40 379,477.20
Airconditioner
(Floor Mounted)
1 pc 1.492 8 11.936 5.18 61.83 18,734.03
Industrial Fan 4 pcs 0.9 8 7.2 5.18 149.18 45,202.75
Industrial
Exhaust Fan
7 pcs 3.36 8 26.88 5.18 974.67 295,324.65
TOTAL

2,130,657.26








TECHNICAL ASPECT | 103

Table 3.14: Water Expense Plant
PRODUCTION
Current Charges

Monthly Consumption
(Cu.m)
30.00
Basic Charge

2,049.94
FCDA

24.80
Environmental Charge

368.99
Sewer System

614.98
Maintenance Service Charge

2.00
Current charges before taxes

3,060.72
Add 12% VAT

367.29
Total Current Charges

3,428.00
Total Monthly Bill

3,428.00
Annual Water Bill

41,136.02

Table 3.15: Utilities Expense Plant
Utilities
Expense
2013 2014 2015 2016 2017
Electricity 2,130,657.26 2,173,270.41 2,216,735.82 2,261,070.53 2,306,291.95
Water 41,136.02 41,958.74 42,797.91 43,653.87 44,526.95
Total 2,171,793.28 2,215,229.15 2,259,533.73 2,304,724.40 2,350,818.89
*The proponents assume that the utilities expense for the plant will increase by 2 %
annually.






TECHNICAL ASPECT | 104

Table 3.16: Electricity Expense Office
Materials Quantity
Power
(Kw)
Hours
/day
Total
KwHour
Kw/Hour
Rate
Working
Days
Annual Cost
Flourescent
Lights
36 pc 1.44 8 11.52 0.69 303 86,705.51
Compact
Fluorescent
Light
15 pcs 0.23 8 1.8 0.69 303 5,644.89
Airconditioner
(Floor
Mounted)
2 pcs 2.98 8 23.872 5.18 303 74,936.12
Airconditioner
(Window
Type)
8 pcs 5.97 8 47.744 5.18 303 599,488.94
Computer 6 pcs 0.9 8 7.2 2.93 303 38,352.53
Printer 6 pcs 0.72 2 1.44 2.28 303 5,968.86
Fax Machine 1 pc 0.15 0.4 0.06 1.00 303 18.11
TOTAL

811,114.95

Table 3.17: Water Expense Office
Current Charges

Monthly Consumption (Cu.m)

100.00
Basic Charge

4,108.94
FCDA

49.72
Environmental Charge

739.61
Sewer System

1,232.68
Maintenance Service Charge

2.00
Current charges before taxes

6,132.95
Add 12% VAT

735.95
Total Current Charges

6,868.90
Total Monthly Bill

6,868.90
Annual Water Bill

82,426.84





TECHNICAL ASPECT | 105

Table 3.18: Utilities Expense Office
Utilities
Expense
2013 2014 2015 2016 2017
Electricity 811,114.95 827,337.25 843,884.00 860,761.68 877,976.91
Water 82,426.84 84,075.38 85,756.88 87,472.02 89,221.46
Total 893,541.79 911,412.63 929,640.88 948,233.70 967,198.37
*The proponents assume that the utilities expense for the office will increase by 2%
annually.
Table 3.19: Transportation Expense
Transportation Expense Amount
Monthy
amount
2013
Vehicle (2) 15000/ vehicle 30,000.00 360,000.00
Driver (2) 470/trip 3,760.00 45,120.00
Porter (2) 400/trip 3,200.00 38,400.00
TOTAL

36,960.00 443,520.00
*The proponents assume that the security services will outsourced from Vizzwel
trucking company
*The proponents assume that there is 2% increase annually.
Table 4.0: Projected Transportation Expense
Transportation Expense
2013 2014 2015 2016 2017
443,520.00 452,390.40 461,438.21 470,666.97 480,080.31
*The proponents assume that the transportation expense for the office will increase by
2% annually.






TECHNICAL ASPECT | 106

Waste Disposal
The disposal of garbage in the world is a problem that continues to grow with the
development of industrialized nations and the growth of population. Each one of us is
finding ways in disposing waste.

Waste Disposal is management of waste to prevent harm to the environment,
injury or long term progressive damage to health. Disposal of waste is where the
intention is to permanently store the waste for the duration of its biological and chemical
activity, such that it is rendered harmless. Since all of our ingredients are all natural it is
100% biodegradable.

All of the residue needed in making the product will be collected by the garbage
collectors with regards to managements connection to them, since residue can be used
as fertilizer in the near future. The domestic and industrial wastewater will undergo to a
river to comply with the government agencies such as Department of Environment and
Environmental Legislation on Industrial Pollution Control for the exemption of the
wastewater treatment.

FINANCIAL ASPECT | 107










FINANCIAL
ASPECT










FINANCIAL ASPECT | 108



Financial Assumptions
The following assumptions were made in order to compute the financial statements and
analysis:
o Every member of the partnership will contribute an amount of Php 4,333,000.00
o The proponents assume that the annual gross salary will increase by 3%
annually.
o The proponents assume that the direct labor salary will increase by 3% annually
o The proponents assume that the indirect labor will increase by 3% annually.
o The proponents assume that the administrative labor will increase by 3%
annually.
o The proponents assume that there is no work during legal holidays.
o The proponents assume that there are 11 legal holidays in a year.
o The proponents refer to the Proclamation Number 295, series of 2011 for the list
of legal holiday.
o The proponents used the current SSS Contribution table.
o The proponents used the table 2.6 as monthly salary reference.
o The proponents used the current PhilHealth Contribution Table.
o The proponents used the fixed P 100.00 HDMF Contribution.
o The proponents used the 13
th
month pay formula stated by the P.D. no. 851.
o The proponents assume that there are 303 working days worked within the
calendar year.
o The proponents assume that the 13
th
month pay will increase by 3% annually.
o The proponents assume that the security expense will increase by 3% annually.
o The proponents assume that the advertising expense will decrease by 2%
annually.
o The proponents assume that the production capacity increases by 5% annually.
o The proponents assume that the cost of raw materials will increase by 2%
annually.
o The proponents assume that the cost of packaging materials will increase by 2%
annually.
FINANCIAL ASPECT | 109



o The proponents assume that there is no increase in the production equipment for
the next four years
o The proponents assume that there is no increase in the office equipment for the
next four years
o The proponents assume that there is no increase in office supplies for the next
four years
o The proponents assume that there is no increase in safety supplies in the next
four years
o The proponents assume that there is no increase in janitorial supplies for the
next four years.
o The proponents assume that the utilities expense for the plant will increase by
2% annually.
o The proponents assume that the utilities expense for the office will increase by
2% annually.
o The proponents assume that the transportation expense for the office will
increase by 2% annually.
o The proponents assume that there is no increase in rent expense for the next
four years.
o The proponents assume that the income tax is paid at a tax rate of 32%.








FINANCIAL ASPECT | 110





Pre-operating
Licenses and Permits 39,670.60
Production Equipment 2,373,198.00
Office Equipment 383,884.50
Office Furnitures 81,639.00
Renovation Expense 2,520,000.00
Promotional Expense 121,500.00
Advertising Expense 161,296.00
Direct Materials 3,692,620.97
Direct Labor 119,843.48
Factory Overhead
Indirect Materials 830,940.50
Indirect Labor 157,153.34
Premiums 534.38
Utilities Expense 542,948.32
Rent Expense 496,800.00
Telephone Expense 6,900.00
Transportation Expense 110,880.00
Administrative & Selling Expense
Salaries & Wages (Admin & Selling) 378,217.45
Premiums (SSS, Phil, Pag-ibig) 1,565.63
Office Supplies 81,181.00
Safety Supplies 17,937.50
Janitorial Expense 7,710.00
Uniform Expense 16,400.00
Security Expense 111,000.00
Owner's Equity
SSS 71,514.00
Philhealth 14,325.00
Pag-ibig 8,700.00
TOTAL PROJECT COST 12,348,359.65
Premier Foods Company
Project Cost
FINANCIAL ASPECT | 111



Table 4.2: Cost of Goods Sold


2013 2014 2015 2016 2017
- 295,409.68 307,226.06 313,488.75 319,760.89
14,770,483.87 15,065,893.54 15,367,211.41 15,674,555.64 15,988,046.76
14,770,483.87 15,361,303.22 15,674,437.48 15,988,044.39 16,307,807.64
295,409.68 307,226.06 313,488.75 319,760.89 326,156.15
14,475,074.19 15,054,077.16 15,360,948.73 15,668,283.50 15,981,651.49
479,373.90 494,311.40 509,464.20 525,092.01 541,058.71
3,323,762.00 3,390,237.24 3,458,041.98 3,527,202.82 3,597,746.88
628,613.37 647,857.80 667,456.69 687,678.56 707,801.92
2,171,793.28 2,215,229.15 2,259,533.73 2,304,724.40 2,350,818.89
443,520.00 452,390.40 461,438.21 470,666.97 480,080.31
125,654.80 125,654.80 125,654.80 125,654.80 125,654.80
1,987,200.00 1,987,200.00 1,987,200.00 1,987,200.00 1,987,200.00
8,680,543.45 8,818,569.39 8,959,325.41 9,103,127.56 9,249,302.80
23,634,991.54 24,366,957.94 24,829,738.34 25,296,503.07 25,772,013.00
- 1,181,749.58 1,277,435.38 1,305,358.69 1,330,093.09
23,634,991.54 25,548,707.52 26,107,173.71 26,601,861.76 27,102,106.09
1,181,749.58 1,277,435.38 1,305,358.69 1,330,093.09 1,355,105.30
22,453,241.96 24,271,272.14 24,801,815.03 25,271,768.67 25,747,000.79
- 2,245,324.20 2,651,659.63 2,745,347.47 2,801,711.61
22,453,241.96 26,516,596.34 27,453,474.66 28,017,116.14 28,548,712.40
2,245,324.20 2,651,659.63 2,745,347.47 2,801,711.61 2,854,871.24
20,207,917.77 23,864,936.70 24,708,127.19 25,215,404.52 25,693,841.16
Cost of Good Sold
Utilities Expense
Transportation Expense
Depreciation
Total Goods Put into Process
Less: Work in Process, End
Cost of Goods Manufactured
Add: Finished Good Inventory, Beginning
Cost of Goods Available for Sale
Less: Finished Good Inventory, Ending
Indirect Labor
Rent Expense
Total Manufacturing Overhead
Total Factory Cost
Add: Work in Process, Beginning
PREMIER FOODS COMPANY
COST OF GOOD SOLD
For the Years Ended 2013 - 2017
Indirect Materials
Manufacturing Overhead:
Raw Material Used:
Raw Materials, Beginning
Add: Purchases
Raw Materials Available for Use
Less: Raw Materials, Ending
Raw Material Used
Direct Labor
FINANCIAL ASPECT | 112



Table 4.3: Income Statement


2013 2014 2015 2016 2017
Sales Php44,576,806.89 Php46,805,647.24 Php49,145,929.60 Php51,603,226.08 Php54,183,387.38
Less: Cost of Good Sold 20,207,917.77 23,864,936.70 24,708,127.19 25,215,404.52 25,693,841.16
Gross Profit Php24,368,889.13 Php22,940,710.53 Php24,437,802.40 Php26,387,821.56 Php28,489,546.22
Less Operating Expenses:
Salaries & Wages 1,512,869.79 1,547,236.63 1,594,524.88 1,643,270.19 1,694,101.35
SSS Premium Payable 286,056.00 288,234.00 297,075.60 306,408.00 313,248.00
Philhealth Premium Payable 57,300.00 61,050.00 61,800.00 62,550.00 66,150.00
Pag-ibig Premium Payable 34,800.00 34,800.00 34,800.00 34,800.00 34,800.00
Utilities Expense 893,541.79 911,412.63 929,640.88 948,233.70 967,198.37
Janitorial Expense 483,724.80 498,236.54 513,183.64 528,579.15 544,436.52
Security Expense 686,280.00 706,868.40 728,074.45 749,916.69 772,414.19
Telephone Expense 27,600.00 27,600.00 27,600.00 27,600.00 27,600.00
Licenses & Permits 39,670.60 37,928.39 35,865.98 37,757.81 40,255.54
Advertising Expense 161,296.00 158,070.08 154,908.68 151,810.50 148,774.29
Supplies Expense 106,828.50 106,828.50 106,828.50 106,828.50 106,828.50
Depreciation Expense - Office Equipment 23,848.25 23,848.25 23,848.25 23,848.25 23,848.25
Depreciation Expense - Office Furniture 12,583.30 12,583.30 12,583.30 12,583.30 12,583.30
Total Administrative & Operation Expense 4,326,399.03 Php4,414,696.71 Php4,520,734.16 Php4,634,186.09 Php4,752,238.32
Income from Operations Php20,042,490.10 Php18,526,013.82 Php19,917,068.24 Php21,753,635.46 Php23,737,307.90
Less: Income Tax (32%) 6,413,596.83 5,928,324.42 6,373,461.84 6,961,163.35 7,595,938.53
Net Income Php13,628,893.26 Php12,597,689.40 Php13,543,606.40 Php14,792,472.12 Php16,141,369.37
For the Years Ended 2013 - 2017
PREMIER FOODS COMPANY
Projected Profit and Loss
FINANCIAL ASPECT | 113



Table 4.4: Owners Equity

BUGARIN LABRADOR GUILLERMO
2013
Capital Beginning 4,333,000.00 4,333,000.00 4,333,000.00
Add: Net Income 4,542,964.42 4,542,964.42 4,542,964.42
Capital End Php8,875,964.42 Php8,875,964.42 Php8,875,964.42
BUGARIN LABRADOR GUILLERMO
2014
Capital Beginning Php8,875,964.42 Php8,875,964.42 Php8,875,964.42
Add: Net Income 4,199,229.80 4,199,229.80 4,199,229.80
Capital End Php13,075,194.22 Php13,075,194.22 Php13,075,194.22
BUGARIN LABRADOR GUILLERMO
2015
Capital Beginning Php13,075,194.22 Php13,075,194.22 Php13,075,194.22
Add: Net Income 4,514,535.47 4,514,535.47 4,514,535.47
Capital End Php17,589,729.69 Php17,589,729.69 Php17,589,729.69
BUGARIN LABRADOR GUILLERMO
2016
Capital Beginning Php17,589,729.69 Php17,589,729.69 Php17,589,729.69
Add: Net Income 4,930,824.04 4,930,824.04 4,930,824.04
Capital End Php22,520,553.73 Php22,520,553.73 Php22,520,553.73
BUGARIN LABRADOR GUILLERMO
2017
Capital Beginning Php22,520,553.73 Php22,520,553.73 Php22,520,553.73
Add: Net Income 5,380,456.46 5,380,456.46 5,380,456.46
Capital End Php27,901,010.18 Php27,901,010.18 Php27,901,010.18
PREMIER FOODS COMPANY
Projected Changes in Owner's Equity
For the Year End 2013 - 2017
FINANCIAL ASPECT | 114



Table 4.5: Cash Flow

2013 2014 2015 2016 2017
Cash Flow from Operating Activities
Cash Received from customers 44,576,806.89 46,805,647.24 49,145,929.60 51,603,226.08 54,183,387.38
Less:
Cash paid for rent 1,987,200.00 1,987,200.00 1,987,200.00 1,987,200.00 1,987,200.00
Cash paid for raw materials 18,094,245.87 19,055,212.62 19,438,866.81 19,825,730.16 20,221,860.05
Cash paid for Utilities 3,065,335.07 3,126,641.77 3,189,174.61 3,252,958.10 3,318,017.26
Cash paid for Janitorial 483,724.80 498,236.54 513,183.64 528,579.15 544,436.52
Cash paid for Security 686,280.00 706,868.40 728,074.45 749,916.69 772,414.19
Cash paid for Transportation 443,520.00 452,390.40 461,438.21 470,666.97 480,080.31
Cash paid for Telephone Expense 27,600.00 27,600.00 27,600.00 27,600.00 27,600.00
Cash paid for Licenses & Permits 39,670.60 37,928.39 35,865.98 37,757.81 40,255.54
Cash paid Office Supplies 106,828.50 106,828.50 106,828.50 106,828.50 106,828.50
Cash paid for Advertising 161,296.00 158,070.08 154,908.68 151,810.50 148,774.29
Cash paid for Salaries and Wages 2,620,857.06 2,689,405.82 2,771,445.77 2,856,040.76 2,942,961.98
Cash paid Income Tax Expense 6,413,596.83 5,928,324.42 6,373,461.84 6,961,163.35 7,595,938.53
Net cash inflow from Operating Expense 10,446,652.16 12,089,779.77 13,425,324.18 14,715,183.83 16,067,242.27
Cash flow from Investing Activities
Less:
Payment for Plant Equipment 2,373,198.00
Payment for Office Equipment 383,884.50
Payment for Office Furniture 81,639.00
Net cash flow from Investing Activities 2,838,721.50 - - - -
Cash flow from Financing Activities
Cash Investment by the Owner's Php12,999,000.00
Net Cash inflow/outflow from Financing Activities - - - - -
Net increase/(decrease) in cash 20,606,930.66 12,089,779.77 13,425,324.18 14,715,183.83 16,067,242.27
Cash Balance, Beginning - 20,606,930.66 32,696,710.44 46,122,034.61 60,837,218.44
Cash Balance, End 20,606,930.66 32,696,710.44 46,122,034.61 60,837,218.44 76,904,460.71
PREMIER FOODS COMPANY
Projected Cash Flow
For the Year End 2013 - 2017
FINANCIAL ASPECT | 115



Table 4.6: Balance Sheet

2013 2014 2015 2016 2017
ASSETS
Current Assets
Cash 20,606,930.66 32,696,710.44 46,122,034.61 60,837,218.44 76,904,460.71
Raw Materials Inventory 295,409.68 307,226.06 313,488.75 319,760.89 326,156.15
Work in Process Inventory 1,181,749.58 1,277,435.38 1,305,358.69 1,330,093.09 1,355,105.30
Finished Goods Inventory 2,245,324.20 2,651,659.63 2,745,347.47 2,801,711.61 2,854,871.24
Total Current Assets 24,329,414.11 36,933,031.51 50,486,229.51 65,288,784.03 81,440,593.40
Non-current Assets
Production Equipment 2,373,198.00 2,373,198.00 2,373,198.00 2,373,198.00 2,373,198.00
Accumulated Depreciation - Plant Equipment (125,654.80) (125,654.80) (125,654.80) (125,654.80) (125,654.80)
Office Equipment 383,884.50 383,884.50 383,884.50 383,884.50 383,884.50
Accumulated Depreciation - Office Equipment (23,848.25) (23,848.25) (23,848.25) (23,848.25) (23,848.25)
Office Furniture 81,639.00 81,639.00 81,639.00 81,639.00 81,639.00
Accumulated Depreciation - Office Furniture (12,583.30) (12,583.30) (12,583.30) (12,583.30) (12,583.30)
Total Non-current assets 2,676,635.15 2,676,635.15 2,676,635.15 2,676,635.15 2,676,635.15
Total Assets 27,006,049.26 39,609,666.66 53,162,864.66 67,965,419.18 84,117,228.55
Liabilities and Owner's Equity
Liabilities
SSS Premium Payable 286,056.00 288,234.00 297,075.60 306,408.00 313,248.00
Philhealth Premium Payable 57,300.00 61,050.00 61,800.00 62,550.00 66,150.00
Pag-ibig Premium Payable 34,800.00 34,800.00 34,800.00 34,800.00 34,800.00
Total Liabilities 378,156.00 384,084.00 393,675.60 403,758.00 414,198.00
Capital
Capital Investment, Bugarin 8,875,964.42 13,075,194.22 17,589,729.69 22,520,553.73 27,901,010.18
Capital Investment, Labrador 8,875,964.42 13,075,194.22 17,589,729.69 22,520,553.73 27,901,010.18
Capital Investment, Guillermo 8,875,964.42 13,075,194.22 17,589,729.69 22,520,553.73 27,901,010.18
Total Capital 26,627,893.26 39,225,582.66 52,769,189.06 67,561,661.18 83,703,030.55
Total Liabilities and Capital 27,006,049.26 39,609,666.66 53,162,864.66 67,965,419.18 84,117,228.55
PREMIER FOODS COMPANY
Projected Balance Sheet
December 31, 2013-2017
FINANCIAL ASPECT | 116



Financial Analysis
A. Liquidity
Current Ratio

2013 2014 2015 2016 2017
Current Assets 24,329,414.11 36,933,031.51 50,486,229.51 65,288,784.03 81,440,593.40
Current
Liabilities
378,156.00 384,084.00 393,675.60 403,758.00 414,198.00
Current Ratio 64.34 96.16 128.24 161.70 196.62

Acid Test Ratio

2013 2014 2015 2016 2017
Current Assets -
Inventory
20,606,930.66 32,696,710.44 46,122,034.61 60,837,218.44 76,904,460.71
Current Liabilities 378,156.00 384,084.00 393,675.60 403,758.00 414,198.00
Acid Test Ratio 54.49 85.13 117.16 150.68 185.67

The current ratio is one of the most commonly cited financial ratios for it measures the company's ability to meet its
short-term obligations, also with the acid test ratio. Based upon the computations made, the company can meet its short-
term obligations for the current ratios and acid test ratio are increasing every year, meaning, the greater the current ratio
the more liquid the company is considered to be.


FINANCIAL ASPECT | 117



B. Profitability
Net Profit Margin Before Tax

2013 2014 2015 2016 2017
Net Income before
Tax
Php20,042,490.10 Php18,526,013.82 Php19,917,068.24 Php21,753,635.46 Php23,737,307.90
Sales 44,576,806.89 46,805,647.24 49,145,929.60 51,603,226.08 54,183,387.38
Net Profit Margin 0.45 0.40 0.41 0.42 0.44

Net Profit Margin After Tax

2013 2014 2015 2016 2017
Net Income after
Tax
Php13,628,893.26 Php12,597,689.40 Php13,543,606.40 Php14,792,472.12 Php16,141,369.37
Sales 44,576,806.89 46,805,647.24 49,145,929.60 51,603,226.08 54,183,387.38
Net Profit Margin 0.31 0.27 0.28 0.29 0.30

Net profit margin measures the percentage of each sale peso remaining after all costs and expenses have been
deducted. From the computations made, the percentage of each sales centavo within 5 years after all cost and expenses
are made is high meaning the company shows good net profit margins with respect to sales.




FINANCIAL ASPECT | 118



Gross Profit Margin

2013 2014 2015 2016 2017
Gross Profit 24,368,889.13 22,940,710.53 24,437,802.40 26,387,821.56 28,489,546.22
Sales 44,576,806.89 46,805,647.24 49,145,929.60 51,603,226.08 54,183,387.38
Gross Profit
Margin
0.55 0.49 0.50 0.51 0.53

The gross profit margin measures the percentage of each peso remaining after the company has paid for its goods.
Upon the computations made, the company's gross profit margin is getting higher every year and this means that the
higher the gross profit margin the better, that is the lower the relative cost of merchandise sold.
Return on Equity

2013 2014 2015 2016 2017
Net Profit After Tax Php13,628,893.26 Php12,597,689.40 Php13,543,606.40 Php14,792,472.12 Php16,141,369.37
Owner's Equity Php26,627,893.26 Php39,225,582.66 Php52,769,189.06 Php67,561,661.18 Php83,703,030.55
Return on Equity 0.51 0.32 0.26 0.22 0.19

Total Asset Turnover

2013 2014 2015 2016 2017
Sales Php44,576,806.89 Php46,805,647.24 Php49,145,929.60 Php51,603,226.08 Php54,183,387.38
Total Assets 27,006,049.26 39,609,666.66 53,162,864.66 67,965,419.18 84,117,228.55
Total Asset
Turnover
1.65 1.18 0.92 0.76 0.64


FINANCIAL ASPECT | 119



Return on Investment

2013 2014 2015 2016 2017
Net Profit After Tax Php13,628,893.26 Php12,597,689.40 Php13,543,606.40 Php14,792,472.12 Php16,141,369.37
Total Investment Php12,999,000.00 12,999,000.00 12,999,000.00 12,999,000.00 12,999,000.00
Return on
Investment
1.05 0.97 1.04 1.14 1.24

The return on investment evaluates the efficiency of an investment based on the money lost or gained relative
upon the amount of money invested. Upon the computations, the percentage of ROI indicates the value returned on each
peso based on the capital invested.
C. Payback Period
Cash Payback Period
Total Investment 12,999,000.00
Ave Annual Profit 14,140,806.11
Payback Period
0.92 years
11 months

The payback period measures the time needed to recover the initial investment and break even. Based upon the
computation, the amount of time it takes for a project to pay for itself or return its initial investment is 0.7 year or 9 months.



FINANCIAL ASPECT | 120



D. Breakeven Analysis
PREMIER FOODS COMPANY
BREAKEVEN ANALYSIS
For the Year 2013 - 2017

2013 2014 2015 2016 2017
Selling Price 32.65 32.65 32.65 32.65 32.65
Variable Cost 15.47 17.21 17.00 16.56 16.12
Fixed Cost 2,310,582.35 2,307,356.43 2,304,195.03 2,301,096.85 2,298,060.64

Contribution Margin 17.19 15.44 15.66 16.09 16.54
Contribution Margin
%age
52.64% 47.28% 47.95% 49.28% 50.65%
Break-even (Units) 134,425 149,434 147,146 142,983 138,949
Break-even (Php) 4,389,585.99 4,879,694.05 4,804,999.39 4,669,050.34 4,537,323.03

2013 2014 2015 2016 2017
Total Sales 4,389,585.99 4,879,694.05 4,804,999.39 4,669,050.34 4,537,323.03
Total VC 2,079,003.64 2,572,337.62 2,500,804.36 2,367,953.48 2,239,262.39
Fixed Cost 2,310,582.35 2,307,356.43 2,304,195.03 2,301,096.85 2,298,060.64

A break-even point is typically calculated in order for businesses to determine if it would be profitable to sell a
proposed product. From the computations made the break-even point sales volume indicate the level of sales that are
required to cover costs.





SOCIO ECONOMIC ASPECT | 121






SOCIO
ECONOMIC
ASPECT








SOCIO ECONOMIC ASPECT | 122

Socio- Economic Aspect
Premium Foods Company has a social responsibility for the society. It is the
companys pleasure to contribute to the society by means of giving back to the
government; giving a helping hand to its employees; obtaining the highest level of
customer satisfaction and maintaining and helping the environment.
The company has its own objectives to establish. Its not only operates to gain
profits but also to help the government and the society through the following aspects:
Benefits to Local and National Government
Since Premium Foods Company is a private business, its one of the
responsibilities is to pay taxes. Thru this, the local and national government earns
revenues that can be used as additional funds for different projects and programs. The
company will also provide jobs to reduce the unemployment in the vicinity.
Benefits to Families and Individuals
Premium Foods Company has a great responsibility for the people, it aims to
offer job opportunities in order to decrease the unemployment rate in the country and
supports in providing income to every individual and family.
Benefits to Customers
Premium Foods Company aims to provide quality products that will give
satisfaction to the customers. Customers today are now looking for products that are not
only affordable and have good taste but also have good health benefits. The product
offers a reasonably priced, good taste and healthy cracker that the customers want and
also maintaining the Filipino delicacy and culture.



SOCIO ECONOMIC ASPECT | 123

Benefits to the environment
Premium Foods Company will pay proper regards to the environment and social
consequences in every of its operating activity. It will seek special attention to the duty
renewing resources where possible and minimizing waste and pollution and not
sacrifice safety or efficiency in the interest of short term profitability.



APPENDICES | 1










APPENDICES













APPENDICES | 2

APPENDIX 1.1: SURVEY QUESTIONNAIRES
The Feasibility Study of Manufacturing Premium Cracker with Philippine Mango
Ravioli Filling

We, 5
th
year Industrial Engineering students of Polytechnic University of
the Philippines (PUP) are currently doing a Market Study on The Feasibility Study
of Manufacturing Premium Cracker with Philippine Mango Ravioli Filling in partial
fulfillment of the subject Project Feasibility Study.
In connection with this, we would like to request to please answer the following
questions below that will be significant to our study.
Name: ________________________________________
Gender: [] Male [] Female Age: _______________

Instruction: Please put a check on the answer that best fit your choice.

1. What kind of biscuit do you usually eat? (Anong klase ng biskwit ang madalas
mong kinakain?)
[] Plain Biscuits/Crackers [] Biscuits/ Crackers with Filling
[] Flavored Biscuits/Crackers [] Cookies with Filling
[] Gourmet Cookies [] Wafers
[] Others (Pls. specify):___________________

2. Which brand of biscuit do you usually buy? (Aling tatak ng biskwit ang madalas
mong kinakain?)
[] M.Y. San (Skyflakes, Fita, Grahams)
[] Monde (Nissin Wafers, Bingo, Voice)
[] Rebisco (Rebisco Crackers, Hansel)
[] J ack & J ill (Magic Flakes, Cream-O, Dewberry)
[] Others (Pls. specify): ____________________

3. What factors do you consider in buying biscuits? (Anong salik ang iyong
isinasaalang-alang sa pagbili ng biskwit?)
[] Brand name [] Crispiness [] Filling [] Nutrition value
[] Price [] Content (Size) [] Flavor
[] Others (Pls. specify): ____________________

4. Which flavor do you prefer in biscuits? (Aling panlasa ang mas gusto mo sa
biskwit?)
[] Strawberry [] Chocolate [] Butter [] Peanut butter
[] Cheese [] Vanilla [] Coconut [] Cream
[] Others (Pls. specify): ______________
APPENDICES | 3

5. How many packs of biscuit could you consume per week? (Gaano kadaming
biskwit ang nauubos mo sa isang linggo?)
[] 1 pack (10 pieces) [] 3 packs (30 pieces)
[] 2 packs (20 pieces) [] more than 4 packs

6. How much do you spend to buy biscuits? (Magkano ang iyong inilalaan sa pagbili
ng biskwit?)
[] 30php 40php [] 50php 60php
[] 40php 50php [] 60php above

7. Are you familiar with Philippine mango ravioli? (Pamilyar ka ba sa Philippine
mango ravioli?)
[] Yes [] No

8. Have you tried cracker with Philippine mango ravioli filling? (Nasubukan mo na
ba ang kraker na may palamang Philippine Mango ravioli?)
[] Yes [] No

9. Are you willing to buy a Filipino-made cracker with Philippine mango ravioli
filling? (Payag ka bang bumili ng gawang Pinoy na kraker na may palamang
Philippine Mango ravioli?)
Y [] 100 % willingness [] 70 % willingness [] No
E [] 90 % willingness [] 60 % willingness
S [] 80 % willingness [] 50 % willingness




APPENDICES | 4

APPENDIX 1.2: SURVEY ANALYSIS
The survey questionnaires are given to the consumers residing at the target
market area. A total of 400 respondents were used to be the sample population.
The following are the results of the conducted survey. The results are projected
into graphs and some discussion regarding the questions and answers are made.
1. What kind of biscuit do you usually eat? (Anong klase ng biskwit ang madalas
mong kinakain?)

The graph shows that 28% of the respondents usually eat biscuits/crackers with
filling. This means that they will not be hesitant to try and eat our product Cracker with
Philippine Mango Ravioli Filling.




20%
19%
28%
4%
21%
7%
1%
Kind of Biscuit
Plain
Biscuits/Crackers
Flavored
Biscuits/Crackers
Biscuits/Crackers
with Filling
Gourmet Cookies
Cookies with Filling
Wafers
Others
APPENDICES | 5

2. Which brand of biscuit do you usually buy? (Aling tatak ng biskwit ang madalas
mong binibili?)

The result shows that 31% or 124 of the respondents buy Rebisco brand biscuits,
followed by M.Y. San (26%), J ack & J ill (25%), and Monde (16%). This means that the
respondents most likely eat biscuits/crackers with filling in which Rebisco brands are
known for.
3. What factor/s do you consider in buying biscuits? (Anong salik ang iyong
isinasaalang-alang sa pagbili ng biskwit?)

Based from the results, flavor is the most considerable factor the consumer looks
for in buying biscuits which comprises of 29%. This means that they are very sensitive
when it comes to the flavor of biscuits they buy. Other than the flavor, filling is also an
important factor for the consumers in which 22% of the respondents answered for it.
26%
16%
31%
25%
2%
Brand of Biscuit
M.Y. San
Monde
Rebisco
J ack & J ill
Others
9%
10%
8%
8%
22%
29%
13%
1%
Factors in Biscuits
Brand name
Price
Crispiness
Content (size)
Filling
Flavor
Nutrition value
Others
APPENDICES | 6

4. What flavor do you prefer in biscuits? (Aling panlasa ang mas gusto mo sa
biskwit?)

Out of 400 respondents, 161 of them prefer the flavor or taste of chocolate.
Meaning they love the sweetness in chocolate and our will most likely be able to
compete when it comes to the flavor since it contains Philippine Mango which is
considered the worlds sweetest mango.
5. How many packs of biscuit could you consume per week? (Gaano kadaming
biskwit ang nauubos mo sa isang linggo?)

Survey result shows that 49% of the respondents consume only 1 pack or 10
pieces of biscuits per week. This intends to know the quantity of biscuits they eat or
their weekly consumption of biscuits.
15%
10%
40%
11%
9%
1%
7%
5%
2%
Flavors
Strawberry
Cheese
Chocolate
Vanilla
Butter
Coconut
Peanut butter
Cream
Others
22%
49%
17%
12%
Consumption
1 pack (10 pieces)
2 packs (20 pieces)
3 packs (30 pieces)
4 packs (40 pieces)
APPENDICES | 7

6. How much do you spend to buy biscuits? (Magkano ang iyong inilalaan sa pagbili
ng biskwit?)

This question aims to find out how much the consumers usually spend to buy a
pack (10 pieces) of biscuits. 50% of the respondents answered 30php-40php, meaning
it is the acceptable price for them in buying a pack of biscuit. This data will be relevant
for our pricing strategy.
7. Are you familiar with Philippine mango ravioli? (Pamilyar ka ba sa Philippine
mango ravioli?)

364 of the respondents said that they were not familiar with the Philippine mango
ravioli which means that this filling of our cracker will be unique from the existing cracker
fillings in the market. However, 36 of them are familiar with the Philippine mango ravioli
which means that they have heard or tried it in a different kind of food product.

50%
13%
21%
16%
Expenditure
30php-40php
40php-50php
50php-60php
60php above
9%
91%
Awareness
Yes
No
APPENDICES | 8

8. Have you tried cracker with Philippine mango ravioli filling? (Nasubukan mo na
ba ang kraker na may palamang Philippine mango ravioli?)

95% or 379 of the respondents answered that they havent tried a cracker with
Philippine mango ravioli filling meaning our product has a distinct feature compare to
the other crackers available in the market. However 5% or 21 of the respondents
answered that they have tried this kind of product before.
9. Are you willing to buy a Filipino-made cracker with Philippine mango ravioli
filling? (Payag ka bang bumili ng gawang Pinoy na kraker na may palamang Philippine
mango ravioli?)

Most of the respondents or 142 of them have 100% willingness to try our product.
This means that they will likely patronize out product once it is introduced to the market.
This data will also be relevant to for our potential buying market.

5%
95%
Awareness
Yes
No
35%
14% 17%
11%
11%
10%
2%
Willingness
100% willingness
90% willingness
80% willingness
70% willingness
60% willingness
50% willingness
No
APPENDICES | 9

APPENDIX 1.3: ARTICLES OF PARTNERSHIP
Articles of Partnership
Known All Men By These Presents:

That we, the undersigned, all of legal age, residents and citizens of the Republic
of the Philippines, have on this day voluntarily associated ourselves together for the
purpose of forming a partnership under the terms and conditions here in set forth and
subject to the provision of existing laws of the Republic of the Philippines.

And We Hereby Certify:
Article I: That the name of the partnership shall be:
Premier Foods Company
Article II: That the principal office of the partnership shall be located in:
San Rafael St. Barangay Plainview, Mandaluyong City.
Article III: That the names, citizenship and residence of the partners of said
partnership are as follows:
Name Citizenship Residence
Grace C. Bugarin Filipino
Western Bicutan,
Taguig City
Arlene B. Guillermo Filipino
Western Bicutan,
Taguig City
J ay Vincent C. Labrador Filipino Sta. Mesa, Manila
Citizenship and Residence of Partners
Article IV: That the term for which said partnership is to exist in 10 years from
and after the recording of the said partnership by the Securities and Exchange
Commission.
APPENDICES | 10

Article V: That the capital of this partnership shall be Php 12,999,000.00
contributed in cash by the partners as follows:
Partners Contribution
Grace C. Bugarin Php 4,333,000
Arlene B. Guillermo Php 4,333,000
J ay Vincent C. Labrador Php 4,333,000
Grand total Php 12,999,000.00

That no transfer of interest which will reduce the ownership of Filipino citizens to less
than the required percentage of capital shall be allowed or permitted to be recorded in
the bank of the partnership.
Article VI: That the profits and losses shall be divided pro-rata among the
partners.
Article VII: That the company shall be under the management of the General
Partners.
Article VIII: That the partners undertake to change the name of the partnership
immediately upon receipt of notice or directive from the Securities and Exchange
Commission that another partnership, corporation or person has acquired a prior right to
use of that name or that the name has been declared as misleading, deceptive,
confusingly similar to a registered name, or contrary to public morals, good customs or
public policy.
In Witness Whereof, we have hereunto set our hands this ________________
day of _______________, 2011 in Mandaluyong City, Philippines.
___________________ ___________________
Residence certificate Residence certificate
Signed in the presence of:
___________________ ___________________
APPENDICES | 11

APPENDIX 1.4: MINIMUM WAGE RATES

DAILY MINIMUM WAGE RATES
National Capital Region (NCR) a/
Per Wage Order No. NCR-17 b/
Effective: 3 June 2012

Upon Effectivity:

Sector/Industry
Basic Wage After
COLA Integration

COLA
New
Minimum
Wage Rates
Non-Agriculture P 426.00 P 20.00 P 446.00
Agriculture (Plantation and Non
Plantation)
P 389.00 P 20.00 P 409.00
Private Hospitals with bed capacity of
100 or less
P 389.00 P20.00 P 409.00
Retail/Service Establishments
employing 15 workers or less
P 389.00 P20.00 P 409.00
Manufacturing Establishments
regularly employing less than 10
worker
P 389.00 P 20.00 P 409.00

Effective 01 November 2012:



Sector/Industry
Basic Wage
After
COLA
Integration

COLA
Effective
3 J une
2012
COLA
Effective
1 November
2012
New
Minimum
Wage Rates
Non-Agriculture P 426.00 P 20.00 P 10.00 P 456.00
Agriculture (Plantation and Non
Plantation)
P 389.00 P 20.00 P10.00 P 419.00
Private Hospitals with bed capacity of
100 or less
P 389.00 P20.00 P10.00 P 419.00
Retail/Service Establishments
employing 15 workers or less
P 389.00 P20.00 P10.00 P 419.00
Manufacturing Establishments
regularly employing less than 10
workers
P 389.00 P 20.00 P 10.00 P 419.00



a/
Covers the Cities of Caloocan, Las Pinas, Makati, Malabon,
Mandaluyong, Manila, Marikina, Muntinlupa, Paranaque, Pasay, Pasig,
Quezon, San Juan, Taguig, and Valenzuela and Municipalities of
Navotas and Pateros.


b/
Grants the following to all minimum wage workers in the private sector in
the region:
a. Integration of P22.00 COLA under W.O. No. RB-NCR-16 into the basic

APPENDICES | 12

wage.
b. P30.00 COLA per day to be given into two (2) tranches:
>P20.00/day upon effectivity of this Wage Order
>P10.00/day effective November 1, 2012
W.O. issued 17 May 2012, published at Philippine Daily Inquirer on 19
May 2012.

Source: Department of Labor and Employment NWPC Official Website.
Site: (http://www.nwpc.dole.gov.ph/pages/ncr/cmwr_table.html)

APPENDIX 1.5: LEGAL HOLIDAYS
Proclamation No. 295, s. 2011
MALACAAN PALACE
MANILA
BY THE PRESIDENT OF THE PHILIPPINES
PROCLAMATION NO. 295
DECLARING THE REGULAR HOLIDAYS, SPECIAL (NON-WORKING) DAYS, AND
SPECIAL HOLIDAY FOR THE YEAR 2012
WHEREAS, Republic Act (RA) No. 9492, dated J uly 24, 2007, amended Section 26,
Chapter 7, Book I of Executive Order (EO) No. 292, also known as the Administrative
Code of 1987, by declaring certain days (specific or movable) as special or regular
holidays;
WHEREAS, RA No. 9492 provides that holidays, except those which are religious in
nature, are moved to the nearest Monday unless otherwise modified by law, order or
proclamation;
WHEREAS, RA No. 9849 provides that the Eidul Adha shall be celebrated as a national
holiday;
WHEREAS, the EDSA People Power Revolution, which restored and ushered political,
social and economic reforms in the country, serves as an inspiration to Filipinos
everywhere as a nation and as a people;
WHEREAS, on J anuary 23, 2012, the Chinese nationals all over the world will celebrate
Spring Festival, popularly known as the Chinese New Year, which is one of the most
revered and festive events celebrated not only in China but also in the Philippines by
APPENDICES | 13

both Chinese Filipinos and ordinary Filipinos as well; and the joint celebration is a
manifestation of our solidarity with our Chinese Filipino brethren who have been part of
our lives in many respects as a country and as a people; 23 J anuary 2012 may be
declared as a special (non-working) day without detriment to public interest;
WHEREAS, Friday, 2 November 2012, falling between Thursday, 1 November 2012 (All
Saints Day) and Saturday, has been traditionally declared a special (non-working) day
throughout the country;
WHEREAS, to give full opportunity to our people to properly observe All Saints Day with
all its religious fervor which invariably requires them to travel to and from different
regions in the country, Friday, 2 November 2012, may be declared as a special (non-
working) day without detriment to public interest;
NOW, THEREFORE, I, BENIGNO S. AQUINO III, by virtue of the powers vested in me
by the Constitution as President of the Philippines, do hereby declare:
SECTION 1. The following regular holidays and special days for the year 2012 shall be
observed in the country:
A. Regular Holidays

New Years Day
Maundy Thursday
Good Friday
Araw ng Kagitingan

J anuary 1 (Sunday)
April 5
April 6
April 9 (Monday)
Labor Day
Independence Day
National Heroes Day
Bonifacio Day
Christmas Day
Rizal Day

May 1 (Tuesday)
J une 12 (Tuesday)
August 27 (Last Monday of August)
November 30 (Friday)
December 25 (Tuesday)
December 30 (Sunday)
B. Special (Non-Working) Days

Chinese New Year
Ninoy Aquino Day
All Saints Day
Additional special (non-working) day
Last Day of the Year
J anuary 23 (Monday)
August 21 (Tuesday)
November 1 (Thursday)
November 2 (Friday)
December 31 (Monday
C. Special Holiday (for all schools)

EDSA Revolution
Anniversary

February 25 (Saturday)
APPENDICES | 14

SECTION 2. The proclamations declaring national holidays for the observance of Eidl
Fitr and Eidul Adha shall hereafter be issued after the approximate dates of the Islamic
holidays have been determined in accordance with the Islamic calendar (Hijra) or the
lunar calendar, or upon Islamic astronomical calculations, whichever is possible or
convenient. To this end, the National Commission on Muslim Filipinos (NCMF) shall
inform the Office of the President on which day the holiday shall fall.
SECTION 3. The Department of Labor and Employment (DOLE) shall promulgate the
implementing guidelines for this Proclamation.
SECTION 4. This Proclamation shall take effect immediately.
SECTION 5. This Proclamation shall be published in a newspaper of general circulation.
IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the
Republic of thePhilippines to be affixed.
Done in the City of Manila, this 24th day of November in the year of Our Lord, Two
Thousand and Eleven.
APPENDIX 1.6: LEGAL HOLIDAY RATE DEDUCTIONS

Legal Holiday Rate
(Php)
2013
GENERAL OPERATIONS MANAGER 1 955.00 10,505.00
FINANCE HEAD 1 815.00 8,965.00
HUMAN RESOURCE HEAD 1 815.00 8,965.00
FINANCE STAFF 3 525.00 5,775.00
HR ASSISTANT 1 456.00 5,016.00
LOGISTICS HEAD 1 525.00 5,775.00
SALES AND MARKETING HEAD 1 815.00 8,965.00
SALES AND MARKETING STAFF 1 525.00 5,775.00
PRODUCTION HEAD 1 815.00 8,965.00
PRODUCTION OPERATOR 7 456.00 5,016.00
PRODUCTION WORKER 6 456.00 5,016.00
MAINTENANCE PERSONNEL 1 456.00 5,016.00
QUALITY CONTROL PERSONNEL 1 456.00 5,016.00
PURCHASING STAFF 1 456.00 5,016.00
INBOUND WAREHOUSE PERSONNEL 1 456.00 5,016.00
OUTBOUND WAREHOUSE PERSONNEL 1 456.00 5,016.00
TOTAL 29 7158.00 78738.00
Position
No. of
Employees
Daily Rate
(Php)
APPENDICES | 15





Legal Holiday Rate
(Php)
2014
GENERAL OPERATIONS MANAGER 1 983.65 10,820.15
FINANCE HEAD 1 839.45 9,233.95
HUMAN RESOURCE HEAD 1 839.45 9,233.95
FINANCE STAFF 3 540.75 17,844.75
HR ASSISTANT 1 469.68 5,166.48
LOGISTICS HEAD 1 540.75 5,948.25
SALES AND MARKETING HEAD 1 839.45 9,233.95
SALES AND MARKETING STAFF 1 540.75 5,948.25
PRODUCTION HEAD 1 839.45 9,233.95
PRODUCTION OPERATOR 7 469.68 36,165.36
PRODUCTION WORKER 6 469.68 30,998.88
MAINTENANCE PERSONNEL 1 469.68 5,166.48
QUALITY CONTROL PERSONNEL 1 469.68 5,166.48
PURCHASING STAFF 1 469.68 5,166.48
INBOUND WAREHOUSE PERSONNEL 1 469.68 5,166.48
OUTBOUND WAREHOUSE PERSONNEL 1 469.68 5,166.48
TOTAL 29 9721.14 175660.32
No. of
Employees
Daily Rate
(Php)
Position
Legal Holiday Rate
(Php)
2015
GENERAL OPERATIONS MANAGER 1 1,013.16 11,144.75
FINANCE HEAD 1 864.63 9,510.97
HUMAN RESOURCE HEAD 1 864.63 9,510.97
FINANCE STAFF 3 556.97 18,380.09
HR ASSISTANT 1 483.77 5,321.47
LOGISTICS HEAD 1 556.97 6,126.70
SALES AND MARKETING HEAD 1 864.63 9,510.97
SALES AND MARKETING STAFF 1 556.97 6,126.70
PRODUCTION HEAD 1 864.63 9,510.97
PRODUCTION OPERATOR 7 483.77 37,250.32
PRODUCTION WORKER 6 483.77 31,928.85
MAINTENANCE PERSONNEL 1 483.77 5,321.47
QUALITY CONTROL PERSONNEL 1 483.77 5,321.47
PURCHASING STAFF 1 483.77 5,321.47
INBOUND WAREHOUSE PERSONNEL 1 483.77 5,321.47
OUTBOUND WAREHOUSE PERSONNE 1 483.77 5,321.47
TOTAL 29 10,012.77 3,194,074.97
Position
No. of
Employees
Daily Rate
(Php)
Legal Holiday Rate
(Php)
2016
GENERAL OPERATIONS MANAGER 1 1043.55 11,479.10
FINANCE HEAD 1 890.57 9,796.30
HUMAN RESOURCE HEAD 1 890.57 9,796.30
FINANCE STAFF 3 573.68 18,931.50
HR ASSISTANT 1 498.28 5,481.12
LOGISTICS HEAD 1 573.68 6,310.50
SALES AND MARKETING HEAD 1 890.57 9,796.30
SALES AND MARKETING STAFF 1 573.68 6,310.50
PRODUCTION HEAD 1 890.57 9,796.30
PRODUCTION OPERATOR 7 498.28 38,367.83
PRODUCTION WORKER 6 498.28 32,886.71
MAINTENANCE PERSONNEL 1 498.28 5,481.12
QUALITY CONTROL PERSONNEL 1 498.28 5,481.12
PURCHASING STAFF 1 498.28 5,481.12
INBOUND WAREHOUSE PERSONNEL 1 498.28 5,481.12
OUTBOUND WAREHOUSE PERSONNEL 1 498.28 5,481.12
TOTAL 29 5,934.60 77,901.60
No. of
Employees
Daily Rate
(Php)
Position
APPENDICES | 16

APPENDIX 1.7: SSS CONTRIBUTION TABLE

Source: Social Security System Official Website. 2012.
Site:(http://www.sss.gov.ph/sss/printversion.jsp?id=111&file=regi_contrib_table.html)
APPENDIX 1.8: SSS CONTRIBUTION

Year
ER EE ER EE 2013
GENERAL OPERATIONS MANAGER 1 24,830.00 1,060.00 500.00 1,090.00 500.00 13,080.00
FINANCE HEAD 1 21,190.00 1,060.00 500.00 1,090.00 500.00 13,080.00
HUMAN RESOURCE HEAD 1 21,190.00 1,060.00 500.00 1,090.00 500.00 13,080.00
FINANCE STAFF 3 13,650.00 954.00 450.00 2,862.00 1,350.00 34,344.00
HR ASSISTANT 1 11,856.00 848.00 400.00 858.00 400.00 10,296.00
LOGISTICS HEAD 1 13,650.00 954.00 450.00 964.00 450.00 11,568.00
SALES AND MARKETING HEAD 1 21,190.00 1060.00 500.00 1,090.00 500.00 13,080.00
SALES AND MARKETING STAFF 1 13,650.00 954.00 450.00 964.00 450.00 11,568.00
PRODUCTION HEAD 1 21,190.00 1060.00 500.00 1,090.00 500.00 13,080.00
PRODUCTION OPERATOR 7 11,856.00 848.00 400.00 5,936.00 2,800.00 71,232.00
PRODUCTION WORKER 6 11,856.00 848.00 400.00 5,088.00 2,400.00 61,056.00
MAINTENANCE PERSONNEL 1 11,856.00 848.00 400.00 858.00 383.30 10,296.00
QUALITY CONTROL PERSONNEL 1 11,856.00 848.00 400.00 858.00 383.30 10,296.00
PURCHASING STAFF 1 11,856.00 848.00 400.00 858.00 383.30 10,296.00
INBOUND WAREHOUSE PERSONNEL 1 11,856.00 848.00 400.00 858.00 383.30 10,296.00
OUTBOUND WAREHOUSE PERSONNEL 1 11,856.00 848.00 400.00 858.00 383.30 10,296.00
TOTAL 29 316,944.00
Position
No. of
Employees
Monthly
Salary (Php)
Monthly Contribution Total Contribution
APPENDICES | 17




Year
ER EE ER EE 2014
GENERAL OPERATIONS MANAGER 1 25,574.90 1,060.00 500.00 1,090.00 500.00 13,080.00
FINANCE HEAD 1 21,825.70 1,060.00 500.00 1,090.00 500.00 13,080.00
HUMAN RESOURCE HEAD 1 21,825.70 1,060.00 500.00 1,090.00 500.00 13,080.00
FINANCE STAFF 3 14,059.50 989.30 466.70 2,967.90 1,400.10 35,614.80
HR ASSISTANT 1 12,211.68 848.00 400.00 858.00 400.00 10,296.00
LOGISTICS HEAD 1 14,059.50 989.30 466.70 999.30 466.70 11,991.60
SALES AND MARKETING HEAD 1 21,825.70 1,060.00 500.00 1,090.00 500.00 13,080.00
SALES AND MARKETING STAFF 1 14,059.50 989.30 466.70 999.30 466.70 11,991.60
PRODUCTION HEAD 1 21,825.70 1,060.00 500.00 1,090.00 500.00 13,080.00
PRODUCTION OPERATOR 7 12,211.68 848.00 400.00 5,936.00 2800.00 71,232.00
PRODUCTION WORKER 6 12,211.68 848.00 400.00 5,088.00 2400.00 61,056.00
MAINTENANCE PERSONNEL 1 12,211.68 848.00 400.00 860.00 400.00 10,320.00
QUALITY CONTROL PERSONNEL 1 12,211.68 848.00 400.00 861.00 400.00 10,332.00
PURCHASING STAFF 1 12,211.68 848.00 400.00 862.00 400.00 10,344.00
INBOUND WAREHOUSE PERSONNEL 1 12,211.68 848.00 400.00 863.00 400.00 10,356.00
OUTBOUND WAREHOUSE PERSONNEL 1 12,211.68 848.00 400.00 862.00 400.00 10,344.00
TOTAL 29 319,278.00
Position
No. of
Employees
Monthly
Salary (Php)
Monthly Contribution Total Contribution
Year
ER EE ER EE 2015
GENERAL OPERATIONS MANAGER 1 26,342.15 1,060.00 500.00 1,090.00 500.00 13,080.00
FINANCE HEAD 1 22,480.47 1,060.00 500.00 1,090.00 500.00 13,080.00
HUMAN RESOURCE HEAD 1 22,480.47 1,060.00 500.00 1,090.00 500.00 13,080.00
FINANCE STAFF 3 14,481.29 1024.70 483.30 3074.10 1449.90 36,889.20
HR ASSISTANT 1 12,578.03 883.30 416.70 893.30 416.70 10,719.60
LOGISTICS HEAD 1 14,481.29 1024.70 483.30 1034.70 483.30 12,416.40
SALES AND MARKETING HEAD 1 22,480.47 1,060.00 500.00 1,090.00 500.00 13,080.00
SALES AND MARKETING STAFF 1 14,481.29 1024.70 483.30 1034.70 483.30 12,416.40
PRODUCTION HEAD 1 22,480.47 1,060.00 500.00 1,090.00 500.00 13,080.00
PRODUCTION OPERATOR 7 12,578.03 883.30 416.70 6183.10 2916.90 74,197.20
PRODUCTION WORKER 6 12,578.03 883.30 416.70 5299.80 2500.20 63,597.60
MAINTENANCE PERSONNEL 1 12,578.03 883.30 416.70 893.30 416.70 10,719.60
QUALITY CONTROL PERSONNEL 1 12,578.03 883.30 416.70 893.30 416.70 10,719.60
PURCHASING STAFF 1 12,578.03 883.30 416.70 893.30 416.70 10,719.60
INBOUND WAREHOUSE PERSONNEL 1 12,578.03 883.30 416.70 893.30 416.70 10,719.60
OUTBOUND WAREHOUSE PERSONNEL 1 12,578.03 883.30 416.70 893.30 416.70 10,719.60
TOTAL 29 329,234.40
Position
No. of
Employees
Monthly
Salary (Php)
Monthly Contribution Total Contribution
Year
ER EE ER EE 2016
GENERAL OPERATIONS MANAGER 1 27,132.41 1,060.00 500.00 1,090.00 500.00 13,080.00
FINANCE HEAD 1 23,154.89 1,060.00 500.00 1,090.00 500.00 13,080.00
HUMAN RESOURCE HEAD 1 23,154.89 1,060.00 500.00 1,090.00 500.00 13,080.00
FINANCE STAFF 3 14,915.72 1,060.00 500.00 3,180.00 1,500.00 38,160.00
HR ASSISTANT 1 12,955.37 918.30 433.30 928.70 433.30 11,144.40
LOGISTICS HEAD 1 14,915.72 1,060.00 500.00 1,090.00 500.00 13,080.00
SALES AND MARKETING HEAD 1 23,154.89 1,060.00 500.00 1,090.00 500.00 13,080.00
SALES AND MARKETING STAFF 1 14,915.72 1,060.00 500.00 1,090.00 500.00 13,080.00
PRODUCTION HEAD 1 23,154.89 1,060.00 500.00 1,090.00 500.00 13,080.00
PRODUCTION OPERATOR 7 12,955.37 918.30 433.30 6,428.10 3033.10 77,137.20
PRODUCTION WORKER 6 12,955.37 918.30 433.30 5,509.80 2599.80 66,117.60
MAINTENANCE PERSONNEL 1 12,955.37 918.30 433.30 928.70 433.30 11,144.40
QUALITY CONTROL PERSONNEL 1 12,955.37 918.30 433.30 928.70 433.30 11,144.40
PURCHASING STAFF 1 12,955.37 918.30 433.30 928.70 433.30 11,144.40
INBOUND WAREHOUSE PERSONNEL 1 12,955.37 918.30 433.30 928.70 433.30 11,144.40
OUTBOUND WAREHOUSE PERSONNEL 1 12,955.37 918.30 433.30 928.70 433.30 11,144.40
TOTAL 29 339,841.20
Position
No. of
Employees
Monthly
Salary (Php)
Monthly Contribution Total Contribution
APPENDICES | 18



APPENDIX 1.9: PHILHEALTH CONTRIBUTION TABLE


Year
ER EE ER EE 2017
GENERAL OPERATIONS MANAGER 1 27,946.38 1,060.00 500.00 1,090.00 500.00 13,080.00
FINANCE HEAD 1 23,849.53 1,060.00 500.00 1,090.00 500.00 13,080.00
HUMAN RESOURCE HEAD 1 23,849.53 1,060.00 500.00 1,090.00 500.00 13,080.00
FINANCE STAFF 3 15,363.20 1,060.00 500.00 3,180.00 1,500.00 38,160.00
HR ASSISTANT 1 13,344.03 954.00 450.00 964.00 450.00 11,568.00
LOGISTICS HEAD 1 15,363.20 1,060.00 500.00 1,090.00 500.00 13,080.00
SALES AND MARKETING HEAD 1 23,849.53 1,060.00 500.00 1,090.00 500.00 13,080.00
SALES AND MARKETING STAFF 1 15,363.20 1,060.00 500.00 1,090.00 500.00 13,080.00
PRODUCTION HEAD 1 23,849.53 1,060.00 500.00 1,090.00 500.00 13,080.00
PRODUCTION OPERATOR 7 13,344.03 954.00 450.00 6,678.00 3150.00 80,136.00
PRODUCTION WORKER 6 13,344.03 954.00 450.00 5,724.00 2700.00 68,688.00
MAINTENANCE PERSONNEL 1 13,344.03 954.00 450.00 964.00 450.00 11,568.00
QUALITY CONTROL PERSONNEL 1 13,344.03 954.00 450.00 964.00 450.00 11,568.00
PURCHASING STAFF 1 13,344.03 954.00 450.00 964.00 450.00 11,568.00
INBOUND WAREHOUSE PERSONNEL 1 13,344.03 954.00 450.00 964.00 450.00 11,568.00
OUTBOUND WAREHOUSE PERSONNEL 1 13,344.03 954.00 450.00 964.00 450.00 11,568.00
Position
No. of
Employees
Monthly
Salary (Php)
Monthly Contribution Total Contribution
Year
ER EE ER EE 2013
GENERAL OPERATIONS MANAGER 1 24,830.00 300.00 300.00 300.00 300.00 3,600.00
FINANCE HEAD 1 21,190.00 262.50 262.50 262.50 262.50 3,150.00
HUMAN RESOURCE HEAD 1 21,190.00 262.50 262.50 262.50 262.50 3,150.00
FINANCE STAFF 3 13,650.00 162.50 162.50 487.50 487.50 5,850.00
HR ASSISTANT 1 11,856.00 137.50 137.50 137.50 137.50 1,650.00
LOGISTICS HEAD 1 13,650.00 162.50 162.50 162.50 162.50 1,950.00
SALES AND MARKETING HEAD 1 21,190.00 262.50 262.50 262.50 262.50 3,150.00
SALES AND MARKETING STAFF 1 13,650.00 162.50 162.50 162.50 162.50 1,950.00
PRODUCTION HEAD 1 21,190.00 262.50 262.50 262.50 262.50 3,150.00
PRODUCTION OPERATOR 7 11,856.00 137.50 137.50 962.50 962.50 11,550.00
PRODUCTION WORKER 6 11,856.00 137.50 137.50 825.00 825.00 9,900.00
MAINTENANCE PERSONNEL 1 11,856.00 137.50 137.50 137.50 137.50 1,650.00
QUALITY CONTROL PERSONNEL 1 11,856.00 137.50 137.50 137.50 137.50 1,650.00
PURCHASING STAFF 1 11,856.00 137.50 137.50 137.50 137.50 1,650.00
INBOUND WAREHOUSE PERSONNEL 1 11,856.00 137.50 137.50 137.50 137.50 1,650.00
OUTBOUND WAREHOUSE PERSONNEL 1 11,856.00 137.50 137.50 137.50 137.50 1,650.00
TOTAL 29 245,388.00 2,937.50 2,937.50 4,775.00 4,775.00 57,300.00
Posi ti on
No. of
Empl oyees
Monthl y
Sal ary (Php)
Monthl y Contri buti on Total Contri buti on
APPENDICES | 19




Year
ER EE ER EE 2014
GENERAL OPERATIONS MANAGER 1 25,574.90 312.50 312.50 312.50 312.50 3,750.00
FINANCE HEAD 1 21,825.70 262.50 262.50 262.50 262.50 3,150.00
HUMAN RESOURCE HEAD 1 21,825.70 262.50 262.50 262.50 262.50 3,150.00
FINANCE STAFF 1 14,059.50 175.00 175.00 175.00 175.00 2,100.00
HR ASSISTANT 1 12,211.68 150.00 150.00 150.00 150.00 1,800.00
LOGISTICS HEAD 1 14,059.50 175.00 175.00 175.00 175.00 2,100.00
SALES AND MARKETING HEAD 1 21,825.70 262.50 262.50 262.50 262.50 3,150.00
SALES AND MARKETING STAFF 1 14,059.50 175.00 175.00 175.00 175.00 2,100.00
PRODUCTION HEAD 1 21,825.70 262.50 262.50 262.50 262.50 3,150.00
PRODUCTION OPERATOR 7 12,211.68 150.00 150.00 1050.00 1050.00 12,600.00
PRODUCTION WORKER 6 12,211.68 150.00 150.00 900.00 900.00 10,800.00
MAINTENANCE PERSONNEL 1 12,211.68 150.00 150.00 150.00 150.00 1,800.00
QUALITY CONTROL PERSONNEL 1 12,211.68 150.00 150.00 150.00 150.00 1,800.00
WAREHOUSE PERSONNEL 1 12,211.68 150.00 150.00 150.00 150.00 1,800.00
TOTAL 25 228,326.28 2,787.50 2,787.50 4,437.50 4,437.50 53,250.00
Posi ti on
No. of
Empl oyees
Monthl y
Sal ary (Php)
Monthl y Contri buti on Total Contri buti on
Year
ER EE ER EE 2015
GENERAL OPERATIONS MANAGER 1 26,342.15 325.00 325.00 325.00 325.00 3,900.00
FINANCE HEAD 1 22,480.47 275.00 275.00 275.00 275.00 3,300.00
HUMAN RESOURCE HEAD 1 22,480.47 275.00 275.00 275.00 275.00 3,300.00
FINANCE STAFF 1 14,481.29 175.00 175.00 175.00 175.00 2,100.00
HR ASSISTANT 1 12,578.03 150.00 150.00 150.00 150.00 1,800.00
LOGISTICS HEAD 1 14,481.29 175.00 175.00 175.00 175.00 2,100.00
SALES AND MARKETING HEAD 1 22,480.47 275.00 275.00 275.00 275.00 3,300.00
SALES AND MARKETING STAFF 1 14,481.29 175.00 175.00 175.00 175.00 2,100.00
PRODUCTION HEAD 1 22,480.47 275.00 275.00 275.00 275.00 3,300.00
PRODUCTION OPERATOR 7 12,578.03 150.00 150.00 1050.00 1050.00 12,600.00
PRODUCTION WORKER 6 12,578.03 150.00 150.00 900.00 900.00 10,800.00
MAINTENANCE PERSONNEL 1 12,578.03 150.00 150.00 150.00 150.00 1,800.00
QUALITY CONTROL PERSONNEL 1 12,578.03 150.00 150.00 150.00 150.00 1,800.00
WAREHOUSE PERSONNEL 1 12,578.03 150.00 150.00 150.00 150.00 1,800.00
TOTAL 25 235,176.07 2,850.00 2,850.00 4,500.00 4,500.00 54,000.00
Posi ti on
No. of
Empl oyees
Monthl y
Sal ary (Php)
Monthl y Contri buti on Total Contri buti on
Year
ER EE ER EE 2016
GENERAL OPERATIONS MANAGER 1 27,132.41 337.50 337.50 337.50 337.50 4,050.00
FINANCE HEAD 1 23,154.89 287.50 287.50 287.50 287.50 3,450.00
HUMAN RESOURCE HEAD 1 23,154.89 287.50 287.50 287.50 287.50 3,450.00
FINANCE STAFF 1 14,915.72 175.00 175.00 175.00 175.00 2,100.00
HR ASSISTANT 1 12,955.37 150.00 150.00 150.00 150.00 1,800.00
LOGISTICS HEAD 1 14,915.72 175.00 175.00 175.00 175.00 2,100.00
SALES AND MARKETING HEAD 1 23,154.89 287.50 287.50 287.50 287.50 3,450.00
SALES AND MARKETING STAFF 1 14,915.72 175.00 175.00 175.00 175.00 2,100.00
PRODUCTION HEAD 1 23,154.89 287.50 287.50 287.50 287.50 3,450.00
PRODUCTION OPERATOR 7 12,955.37 150.00 150.00 1,050.00 1,050.00 12,600.00
PRODUCTION WORKER 6 12,955.37 150.00 150.00 900.00 900.00 10,800.00
MAINTENANCE PERSONNEL 1 12,955.37 150.00 150.00 150.00 150.00 1,800.00
QUALITY CONTROL PERSONNEL 1 12,955.37 150.00 150.00 150.00 150.00 1,800.00
WAREHOUSE PERSONNEL 1 12,955.37 150.00 150.00 150.00 150.00 1,800.00
TOTAL 25 242,231.35 2912.5 2912.5 4562.5 4562.5 54,750.00
Monthl y
Sal ary (Php)
Monthl y Contri buti on Total Contri buti on
Posi ti on
No. of
Empl oyees
APPENDICES | 20



APPENDIX 1.10: HDMF CONTRIBUTION


Year
ER EE ER EE 2017
GENERAL OPERATIONS MANAGER 1 27,946.38 337.50 337.50 337.50 337.50 4,050.00
FINANCE HEAD 1 23,849.53 287.50 287.50 287.50 287.50 3,450.00
HUMAN RESOURCE HEAD 1 23,849.53 287.50 287.50 287.50 287.50 3,450.00
FINANCE STAFF 1 15,363.20 187.50 187.50 187.50 187.50 2,250.00
HR ASSISTANT 1 13,344.03 162.50 162.50 162.50 162.50 1,950.00
LOGISTICS HEAD 1 15,363.20 187.50 187.50 187.50 187.50 2,250.00
SALES AND MARKETING HEAD 1 23,849.53 287.50 287.50 287.50 287.50 3,450.00
SALES AND MARKETING STAFF 1 15,363.20 187.50 187.50 187.50 187.50 2,250.00
PRODUCTION HEAD 1 23,849.53 287.50 287.50 287.50 287.50 3,450.00
PRODUCTION OPERATOR 7 13,344.03 162.50 162.50 1,137.50 1,137.50 13,650.00
PRODUCTION WORKER 6 13,344.03 162.50 162.50 975.00 975.00 11,700.00
MAINTENANCE PERSONNEL 1 13,344.03 162.50 162.50 162.50 162.50 1,950.00
QUALITY CONTROL PERSONNEL 1 13,344.03 162.50 162.50 162.50 162.50 1,950.00
WAREHOUSE PERSONNEL 1 13,344.03 162.50 162.50 162.50 162.50 1,950.00
TOTAL 25 249498.29 3025.00 3025.00 4812.50 4812.50 57750.00
Posi ti on
No. of
Empl oyees
Monthl y
Sal ary (Php)
Monthl y Contri buti on Total Contri buti on
Year
ER EE ER EE 2013
GENERAL OPERATIONS MANAGER 1 24,830.00 100.00 100.00 100.00 100.00 1,200.00
FINANCE HEAD 1 21,190.00 100.00 100.00 100.00 100.00 1,200.00
HUMAN RESOURCE HEAD 1 21,190.00 100.00 100.00 100.00 100.00 1,200.00
FINANCE STAFF 1 13,650.00 100.00 100.00 100.00 100.00 1,200.00
HR ASSISTANT 1 11,856.00 100.00 100.00 100.00 100.00 1,200.00
LOGISTICS HEAD 1 13,650.00 100.00 100.00 100.00 100.00 1,200.00
SALES AND MARKETING HEAD 1 21,190.00 100.00 100.00 100.00 100.00 1,200.00
SALES AND MARKETING STAFF 1 13,650.00 100.00 100.00 100.00 100.00 1,200.00
PRODUCTION HEAD 1 21,190.00 100.00 100.00 100.00 100.00 1,200.00
PRODUCTION OPERATOR 7 11,856.00 100.00 100.00 700.00 700.00 8,400.00
PRODUCTION WORKER 6 11,856.00 100.00 100.00 600.00 600.00 7,200.00
MAINTENANCE PERSONNEL 1 11,856.00 100.00 100.00 100.00 100.00 1,200.00
QUALITY CONTROL PERSONNEL 1 11,856.00 100.00 100.00 100.00 100.00 1,200.00
WAREHOUSE PERSONNEL 1 11,856.00 100.00 100.00 100.00 100.00 1,200.00
TOTAL 25 221676.00 1400.00 1400.00 2500.00 2500.00 30000.00
Position
No. of
Employees
Monthly
Salary (Php)
Monthly Contribution Total Contribution
APPENDICES | 21




Year
ER EE ER EE 2014
GENERAL OPERATIONS MANAGER 1 25,574.90 312.50 312.50 312.50 312.50 3,750.00
FINANCE HEAD 1 21,825.70 262.50 262.50 262.50 262.50 3,150.00
HUMAN RESOURCE HEAD 1 21,825.70 262.50 262.50 262.50 262.50 3,150.00
FINANCE STAFF 3 14,059.50 175.00 175.00 525.00 525.00 6,300.00
HR ASSISTANT 1 12,211.68 150.00 150.00 150.00 150.00 1,800.00
LOGISTICS HEAD 1 14,059.50 175.00 175.00 175.00 175.00 2,100.00
SALES AND MARKETING HEAD 1 21,825.70 262.50 262.50 262.50 262.50 3,150.00
SALES AND MARKETING STAFF 1 14,059.50 175.00 175.00 175.00 175.00 2,100.00
PRODUCTION HEAD 1 21,825.70 262.50 262.50 262.50 262.50 3,150.00
PRODUCTION OPERATOR 7 12,211.68 150.00 150.00 1050.00 1050.00 12,600.00
PRODUCTION WORKER 6 12,211.68 150.00 150.00 900.00 900.00 10,800.00
MAINTENANCE PERSONNEL 1 12,211.68 150.00 150.00 150.00 150.00 1,800.00
QUALITY CONTROL PERSONNEL 1 12,211.68 150.00 150.00 150.00 150.00 1,800.00
PURCHASING STAFF 1 12,211.68 150.00 150.00 150.00 150.00 1,800.00
INBOUND WAREHOUSE PERSONNEL 1 12,211.68 150.00 150.00 150.00 150.00 1,800.00
OUTBOUND WAREHOUSE PERSONNEL 1 12,211.68 150.00 150.00 150.00 150.00 1,800.00
Posi ti on
No. of
Empl oyees
Monthl y
Sal ary (Php)
Monthl y Contri buti on Total Contri buti on
Year
ER EE ER EE 2015
GENERAL OPERATIONS MANAGER 1 26,342.15 325.00 325.00 325.00 325.00 3,900.00
FINANCE HEAD 1 22,480.47 275.00 275.00 275.00 275.00 3,300.00
HUMAN RESOURCE HEAD 1 22,480.47 275.00 275.00 275.00 275.00 3,300.00
FINANCE STAFF 3 14,481.29 175.00 175.00 525.00 525.00 6,300.00
HR ASSISTANT 1 12,578.03 150.00 150.00 150.00 150.00 1,800.00
LOGISTICS HEAD 1 14,481.29 175.00 175.00 175.00 175.00 2,100.00
SALES AND MARKETING HEAD 1 22,480.47 275.00 275.00 275.00 275.00 3,300.00
SALES AND MARKETING STAFF 1 14,481.29 175.00 175.00 175.00 175.00 2,100.00
PRODUCTION HEAD 1 22,480.47 275.00 275.00 275.00 275.00 3,300.00
PRODUCTION OPERATOR 7 12,578.03 150.00 150.00 1050.00 1050.00 12,600.00
PRODUCTION WORKER 6 12,578.03 150.00 150.00 900.00 900.00 10,800.00
MAINTENANCE PERSONNEL 1 12,578.03 150.00 150.00 150.00 150.00 1,800.00
QUALITY CONTROL PERSONNEL 1 12,578.03 150.00 150.00 150.00 150.00 1,800.00
PURCHASING STAFF 1 12,578.03 150.00 150.00 150.00 150.00 1,800.00
INBOUND WAREHOUSE PERSONNEL 1 12,578.03 150.00 150.00 150.00 150.00 1,800.00
OUTBOUND WAREHOUSE PERSONNEL 1 12,578.03 150.00 150.00 150.00 150.00 1,800.00
Posi ti on
No. of
Empl oyees
Monthl y
Sal ary (Php)
Monthl y Contri buti on Total Contri buti on
Year
ER EE ER EE 2016
GENERAL OPERATIONS MANAGER 1 27,132.41 337.50 337.50 337.50 337.50 4,050.00
FINANCE HEAD 1 23,154.89 287.50 287.50 287.50 287.50 3,450.00
HUMAN RESOURCE HEAD 1 23,154.89 287.50 287.50 287.50 287.50 3,450.00
FINANCE STAFF 3 14,915.72 175.00 175.00 525.00 525.00 6,300.00
HR ASSISTANT 1 12,955.37 150.00 150.00 150.00 150.00 1,800.00
LOGISTICS HEAD 1 14,915.72 175.00 175.00 175.00 175.00 2,100.00
SALES AND MARKETING HEAD 1 23,154.89 287.50 287.50 287.50 287.50 3,450.00
SALES AND MARKETING STAFF 1 14,915.72 175.00 175.00 175.00 175.00 2,100.00
PRODUCTION HEAD 1 23,154.89 287.50 287.50 287.50 287.50 3,450.00
PRODUCTION OPERATOR 7 12,955.37 150.00 150.00 1,050.00 1,050.00 12,600.00
PRODUCTION WORKER 6 12,955.37 150.00 150.00 900.00 900.00 10,800.00
MAINTENANCE PERSONNEL 1 12,955.37 150.00 150.00 150.00 150.00 1,800.00
QUALITY CONTROL PERSONNEL 1 12,955.37 150.00 150.00 150.00 150.00 1,800.00
PURCHASING STAFF 1 12,955.37 150.00 150.00 150.00 150.00 1,800.00
INBOUND WAREHOUSE PERSONNEL 1 12,955.37 150.00 150.00 150.00 150.00 1,800.00
OUTBOUND WAREHOUSE PERSONNEL 1 12,955.37 150.00 150.00 150.00 150.00 1,800.00
Monthl y
Sal ary (Php)
Monthl y Contri buti on Total Contri buti on
Posi ti on
No. of
Empl oyees
APPENDICES | 22


APPENDIX 1.12: PRODUCTION CAPACITY








Year
ER EE ER EE 2017
GENERAL OPERATIONS MANAGER 1 27,946.38 337.50 337.50 337.50 337.50 4,050.00
FINANCE HEAD 1 23,849.53 287.50 287.50 287.50 287.50 3,450.00
HUMAN RESOURCE HEAD 1 23,849.53 287.50 287.50 287.50 287.50 3,450.00
FINANCE STAFF 3 15,363.20 187.50 187.50 562.50 562.50 6,750.00
HR ASSISTANT 1 13,344.03 162.50 162.50 162.50 162.50 1,950.00
LOGISTICS HEAD 1 15,363.20 187.50 187.50 187.50 187.50 2,250.00
SALES AND MARKETING HEAD 1 23,849.53 287.50 287.50 287.50 287.50 3,450.00
SALES AND MARKETING STAFF 1 15,363.20 187.50 187.50 187.50 187.50 2,250.00
PRODUCTION HEAD 1 23,849.53 287.50 287.50 287.50 287.50 3,450.00
PRODUCTION OPERATOR 7 13,344.03 162.50 162.50 1,137.50 1,137.50 13,650.00
PRODUCTION WORKER 6 13,344.03 162.50 162.50 975.00 975.00 11,700.00
MAINTENANCE PERSONNEL 1 13,344.03 162.50 162.50 162.50 162.50 1,950.00
QUALITY CONTROL PERSONNEL 1 13,344.03 162.50 162.50 162.50 162.50 1,950.00
PURCHASING STAFF 1 13,344.03 162.50 162.50 162.50 162.50 1,950.00
INBOUND WAREHOUSE PERSONNEL 1 13,344.03 162.50 162.50 162.50 162.50 1,950.00
OUTBOUND WAREHOUSE PERSONNEL 1 13,344.03 162.50 162.50 162.50 162.50 1,950.00
Posi ti on
No. of
Empl oyees
Monthl y
Sal ary (Php)
Monthl y Contri buti on Total Contri buti on
cycle time 106 mins procedure time to produce 1 batch
working hours 480 mins


4.53 batches


1482 packs per batch


5928 packs per day


35568 packs per week


142272 packs per month

1796184 packs per year
80% line efficiency for 2013
APPENDICES | 25


*The production capacity will increase by 5% annually
APPENDIX 1.13: PRICING




Year Daily Annual
2013 4742 1436947
2014 4980 1508795
2015 5228 1584234
2016 5490 1663446
2017 5764 1746618
Materials
Quantity
per batch
Unit Cost Cost per Batch Annually
Wheat Flour 181.44 19.40 3,519.86 4,153,432.91
Shortening 15.42 5.75 88.68 104,638.68
Emulsifier 0.68 91.75 62.39 73,620.20
sugar 10.89 50.00 544.31 642,283.44
salt 1.36 9.20 12.52 14,772.52
sodium bicarbonate 1.36 14.00 19.05 22,479.92
calcium acid phosphate 1.13 28.00 31.75 37,466.53
water 56.16 3.03 170.16 200,794.46
Mango Puree 94.00 76.00 7,144.00 8,429,920.00
Glucose Syrup 18.90 16.60 313.74 370,213.20
Citric Acid 4.20 29.00 121.80 143,724.00
Pectin 7.30 67.00 489.10 577,138.00
12,517.36 14,770,483.87
1415 packs
Direct Materials per Batch
1 batch =
1,862,323.31
23,512.50
1,436,947.20
1.51
Direct Labor
Premiums
Prod. Capacity
DL per pack
APPENDICES | 26










Cost
8.85
1.51
6.56
16.92
2.09
10.15
29.16
12%
32.65
*mark up = 40%
VAT
Description
direct materials cost
direct labor cost
factory overhead cost
product cost
admin & marketing
total full cost price
SRP
mark up
3,323,762.00
377,168.02
1,912.50
2,171,793.28
0.00
1,987,200.00
125,654.80
7,987,490.60
1,436,947.20
6.56
factory overhead cost
indirect labor
Premiums
utilities (prod)
transportation
rent
indirect materials
depreciation
TOTAL
Prod. Capacity
FO per pack
Administrative & Marketing Expense
1,139,944.60
4,687.50
444,000.00
893,541.79
Permits and Licenses 39,670.60
81,181.00
36,431.55
27,600.00
16,400.00
17,937.50
7,710.00
2,709,104.54
Prod. Capacity 1,436,947.20
A&ME per pack 2.09
Depreciation
Telephone
Uniform
Safety Supplies
Admin Salary
Premium
Security Expense
Utilities (office)
Office Supplies
Janitorial Supplies
TOTAL
APPENDICES | 27


APPENDIX 1.14: SUPPLIERS
SUPPLIER OF RAW MATERIALS FOR CRACKER
RAW
MATERIALS
SUPPLIERS INFORMATION
Wheat Flour
Bakels Phillipines
Suites 601 & 602 Raffles
Corporate Center
Don Francisco Ortigas, J r.
Road
Ortigas Center, Pasig City
Phone: (+63 2) 915 0372 To
74
Sweetcraft Baking And
Confectionery Supplies
373 Boni Avenue,
Mandaluyong City
Phone: (+63 2) 571 8008
Sonli International Inc.
2652 Taft Avenue, Pasay City,
Metro Manila
Phone: (+63 2) 831 - 8882
Shortening
Emulsifier
(Lecithin)
Sodium
Bicarbonate
L And S Chemical Supply,
Incorporated
24 P. Aquino Avenue
Tonsuya 1473 Malabon,
Philippines Malabon
Phone: (63 2) 3512002
Tinson Industrial Chemical
Corp.
Ulmco Bldg. Corumi St. Brgy.
Masambong San Francisco Del
Monte Quezon City
Phone: (63 2) 4162769
Ly-Ra Chemicals Trading
Co., Inc.
838 Teresa St., Ermita Manila
Phone: (63 2) 521 2583
Calcium Acid

APPENDICES | 28

SUPPLIER OF RAW MATERIALS FOR FILLING
RAW
MATERIALS
SUPPLIERS INFORMATION
Mango Puree
Gel Tropical Fruit Plant
Monheim Bldg. 3, Baltao
Compound, Ortigas Avenue
Extension, Taytay Rizal
Phone: (+63 2) 669 1431
Tropical Fruit Winery
Corporation
J ovan Condominium Shaw
Boulevard Corner Samat Street
Mandaluyong City
Phone: (+63 2)535 8063
Lynter Fruits Int'l Inc
Km 32 Pci Compound Brgy
Nueva San Pedro
San Pedro Laguna
Phone: (+63 2) 8690534
Glucose Syrup
Ferna Corporation
Bernardo St.,San Rafael
Village Navotas
Phone: (+63 2) 536136
Rudolf Lietz, Inc.
Lietz Industrial Complex,
Edison Ave., Km14 Paranaque
(63 2) 8217181
Chem World Enterprise
Zabarte Rd. Quirino Hiway
Novaliches Quezon City
Phone: (+63 2) 4178533
Citric Acid
Pectin

APPENDICES | 29

SUPPLIER OF EQUIPMENTS
EQUIPMENTS SUPPLIERS INFORMATION
Digital Platform Weighing Scale
Digital Isys Corporation
Pdaf Bldg. Sen. Gil Puyat Ave., Bel- Air Makati City
Phone (+63 2) 897 8880
Dough Mixer
Handyware
Hpi Corporate Center, Bldg. #1026 Esda
Quezon City
Phone: (+63 2) 426 2888
Dough Sheeter
Dough Laminator
Prism Oven
Cooling Conveyor
Westrac Industrial Corporation
Sata Corp. Bldg., Taft Avenue, Cartimar Center, Pasay City
Phone: (+63 2) 551 1220
Sandwiching Machine
Minoga Industrial Co., Ltd.
Bourder House Drive Meyc. Industrial Park, Barrio Pantok,
Meycauayan, Bulacan
Phone: 63-44-2282708
Fruit Vacuum Emulsifying Machine
Packaging Machine

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