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infection home to your family. Hand sanitizer can assist you in this matter,
when there is no convenient source of soap and water.
Aside from this uses, our product can also be used as mosquito
repellent because of its scent. Citronella and tea tree oils are said to have this
effect.
A business enterprise can be more competitive when fused to another
resilient class of business thus, giving a green personal care business a big
shot on the Philippine market. The aim of this study is to associate
environmental friendly and personal health product in constituting a product,
coming up with a product which is not only an all-in-one hand sanitizer but
also a product that is eco-friendly since it only uses 100% natural ingredients.
Project History
Hand sanitizer, is a supplement or alternative to hand washing with
soap and water. Various preparations are available, including gel, foam, and
liquid solutions, was first available as a production in 1946 created by Goldie
and Jerry Lippman in Akron, Ohio. Jerry and Goldie worked in the rubber
plants during World War II where dirty hands are their way of life and their co-
workers. Soils like graphite, tae, and carbon black were difficult to remove
and the chemicals like benzene can get the dirt off, but they were dangerous
to use and they irritated the skin. The Lippman found a better, safer way for
rubber workers to clean their hands when Jerry, in cooperation with Clarence
Cook of Kent State University, invented a grease- cutting soap that could be
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used with or without water. And in 1988 they introduced the Purell hand
sanitizer. At the same time the popularity of hand sanitizer began to soar and
is now particularly popular among parents who have small children.
Earlier in 1960s, hand washing had been the most fundamental way of
promoting a healthy living, with the use of soap to clean your hands and water
to wash it out. But this practice is somehow inconvenient especially to those
who are in the middle of busy schedule and also in traveling. People
nowadays are being more conscious about their time, but of course, doing
something easier without compromising their health is the main concern.
Lupe Hernandez of Bakersfield, California was studying to become an
RN. During one of her research in 1966, she found out that alcohol can be
delivered through the medium of gel to provide near instantaneous cleansing
in an environment where there is no time to find a sink and wash with soap
and warm water. Since their invention, hand sanitizers or hand antiseptics
started gaining popularity and many companies started patenting their
products. Since then, hand sanitizers can be found everywhere like in every
household, malls, hospitals and schools.
Experimental procedures undergone by chemists, had prolonged the
evolution of hand sanitizers, continuously conducting researches unto some
alternatives since alcohol found to be an agent in making skin dry. The critical
allegations on alcohol establish the need of human for substitute, meaning,
looking for something that disinfects like an alcohol but does not possess its
characteristics of drying someones skin.
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Natural products are found to be environmental friendly and effective,
giving people the idea that it can be used as an alternative. Research
conducted through the years has proven that the use of products with
benzalkonium chloride may increase bacteria resistance that alcohol-based
bacteria hand sanitizers do not provide.
Background of the Study
CMC Company is an entity which dedicates themselves to in the field
of personal care industry. The formation of which is initiated by the time the
partners, Belza, Gacot and Miranda, came up with the idea of providing
people the care they be worthy of.
PreppyHands Hand Sanitizer is the product that has been developed
by the entity, itself. It is a means of personal care put into a bottle comprising
the benefits of mosquito repellent, moisturizer and hand sanitizer in one
product.
CMC Company aims to give consumers an appropriate value for their
money. It is to provide them a product which does not only concentrate on
being a hand sanitizer with mosquito repellent and moisturizer, but also being
environmental welcoming in a sense that it only uses components that do not
harm the ecosystem.
Scope and Limitation
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This study was conducted from the first week of January to first week
of March 2013. This study only focused on know whether the business is
viable and if yes, also the extent of its profitability.
The mere population around Pasay City, specifically men and women
at the age between 15 to 44 years old, will be the main target of this study,
and from that population, the researchers will use purposive sampling in order
to get the sample space appropriate for this study. In terms of the
respondents, it must be the people, especially students, residing there.
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MISSION
CMC Companys mission in part of its vision is to
continuously manufacture a hand sanitizer at a
reasonable price without compromising its quality and to
incessantly strive hard in aiming its vision.
VISION
To become the top manufacturer of Hand Sanitizer in the
country which meet the highest quality, affordability and
efficiency standards that will provide our customer
protections against the spread of germs and serious
public health threats.
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In order to get these objectives into reality, the four basic management
functions which are planning, organizing, influencing and controlling, must be
always considered.
Planning is an activity involving choice of tasks that must be done in order to
attain organizational goals, delineating who, when, what and how is going to
do specific jobs. This phase of management is significant for it serves as the
stepping point towards the attainment of the entitys goal.
In speaking of Organizing, it is defined to be as the point of creating a
mechanism in putting what have been planned into actions.
In order to achieve a certain goal, every individual in the organization must
possess the will and urge to do the task they are up to, and to ascertain this,
management must consider influencing manpower. The main purpose of this
is to increase the productivity and efficiency in each of the departments.
And lastly, the controlling part, this could be the most crucial part
because aside from checking actual performance against the standards or
plans, it is an ongoing process and deals a lot of courage and effort to be
done effectively.
Pre-operating period Management
Project originators:
Belza, Charmaine N.
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Gacot, Maria Teresa A.
Miranda, Cristel Jane S.
Form of Business Ownership
Partnership will be the form of organization to be used in this business
and the entity shall be named as CMC Company and will be operated under
the partners, named Charmaine Belza, Maria Teresa Gacot and Cristel Jane
Miranda. Among the three partners, one will act as the managing partner. The
partners solely agree that they will consult all partners in transactions that
appear to be material. The partners agreed among themselves that the profit
must be divided equally.
Capitalization
Each of the partners, Belza, Gacot and Miranda will invest P220, 000
respectively from their own funds and will no longer lend money from any
financial institutions. The initial capital will be used in acquiring the raw
materials, equipment, 1 month advance and 2 months deposit of their rented
space, salaries for employees, and other overhead expenses intended for the
business.
Organizational Structure
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Figure 2.1
Organizational ChartManaging Partner
Job Specifications
Responsible for supervision in administrative, marketing and
production aspect and hiring workers.
Responsible to manage staffs and hire new workers.
Responsible in ensuring the cost effectiveness of the production
Responsible for implementation of plans whether marketing or
production related.
Responsible in the work back of personnel.
Responsible in reviewing and managing office budget and expenditure.
Responsible to attend performances and other events as required out
of normal office hours.
Responsible to support the overall marketing objectives of company
both externally and internally
Responsible to report on campaigns to ensure effective departmental
communications.
Managing Partner
OfficePersonnel
ProductionPersonnel
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Responsible to maintain liaison with external and internal suppliers,
assisting in commissioning and delivery of marketing material.
Responsible personnel for social networking promotional activities.
Responsible in ensuring the making of website, if there is any.
Responsible for making proposal related to marketing.
Responsible in reviewing the marketing strategy of business.
Job Qualifications
Must be one of the partners of the company
Must have a minimum of three years experience in business
management, planning and financial supervision.
Must have a three years experience in personnel management
including supervision and hiring.
Must be computer literate
Must speak English fluently
Must be excellent in verbal and non-verbal communication skills
Must have some knowledge with regards to making layout for print
ads.
Must be creative and willing to work over time.
Production Personnel
Job Specifications
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Responsible for supervision in administrative, marketing and
production aspect and hiring workers.
Responsible to monitor the production processes and adjusting
schedules as needed.
Responsible to make sure that the products are produced on time
and are of good quantity.
Responsible for the safe keeping of raw materials and equipments
needed for production.
Responsible to report any setbacks with the production system
Responsible in ensuring the cost effectiveness of the production.
Responsible in packing the products.
Responsible in transferring the product to the person in charge for
delivery.
Responsible in proper handling of finished products.
Responsible in putting tag prices if needed.
Job Qualifications
Must be 19 years of age but not above 40 years old.
Must be at least high school graduate.
Must be hard working.
Must be willing to work under pressure
Office Personnel
Job Specifications
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Responsible in creating schedules to ensure sufficient and well-
organized staffing at all times.
Responsible to answer telephones, file documents, make copies,
send faxes, sign for packages, distribute mail, maintain office
supplies, and support staff members in project work.
Responsible for arranging and confirming appointments
Responsible in handling incoming mail and other material
Acts as office receptionist.
Responsible in safe keeping of office supplies and equipments.
Job Qualifications
Must be know how to use MS applications, internet and fax
machine.
Must be at least high school graduate.
Must possess pleasing personality.
Must be willing to work under pressure
Must be 19 years old and above.
Must be at least 51 in height.
Manpower Requirement
Table 2.1
Manpower Requirement
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POSITION REQUIRED NUMBER
Managing Partner 1
Production Personnel 1
Office Personnel 1
TOTAL MANPOWER 3
Company Policies
I. Employment Policies
a. Hiring Procedure
i. The manager of the company will be responsible for
hiring new employees as well as his or her training if
needed.
ii. Equal Pay. Gender will not be a basis for giving salaries
and wages to the employees.
iii. Hostile Environment Standards. CMC Company prohibits
any and all practices ranging from sexual harassment.
iv. CMC Company is committed in providing equal
opportunities to individuals with disability.
v. Zero Tolerance for Violence in the Workplace. In
response to this, CMC Company will require each
applicant to submit NBI and Police Clearance upon
hiring.
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vi. Health Examination. Since CMC Company deals with a
personal care product, applicants are required to submit
at least Phase 1 Medical examination for sanitary
purposes.
II. Employee Information
a. Upon admission to the company, the employee will be classified
as either contractual or regular employee. Contractual
employees are those who are bound to work for the company in
a definite period, on the other hand, regular employees are
those who are required to work 8 hours a day or 40 hours a
week and is entitled to receive bonuses as deemed necessary
by the manager.
In the contrary, manager is not entitled to be given extra pay for
overtime hours.
b. Employees Personnel File. Because this contains personal
information of the employees, the company, specifically the
manager, will be responsible in safe keeping the files and
keeping in confidential.
III. Starting to Work
a. Employees Anniversary Date or the first date of report will be
used in computing his compensation.
b. Work Schedule. During regular operations, CMC Company is
open from Monday to Friday by 8:00AM to 5:00PM. During
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holidays, specific designation of schedule will be done by the
manager.
c. Meal Periods. Each employees are bound to take an hour break
during 12:00 NN and return to operation by 1:00PM, and 15-
minute break from 3:00PM to 3:15PM.
d. Compensation. Being one of the most fundamental
requirements for putting up a business and establishing a better
working environment for each asset of the company, primary the
people who makes up the manpower, there is a need for a
proper allotment of compensation. The employees of CMC
Company will be paid accordingly to the daily minimum wage
rate as proposed by Department of Labor and Employment
under the sector of manufacturing establishments regularly
employing less than 10 workers which is P419.00 inclusive of
COLA. The table below shows the wage for each employee:
Table 2.2
Compensation Schedule
POSITION
DAILY WAGE
2014 2015 2016 2017 2018
ManagingPartner 1,000.00 1,030.00 1,060.00 1,090.00 1,120.00
ProductionPersonnel 426.00 439.00 452.00 465.00 478.00
OfficePersonnel 426.00 439.00 452.00 465.00 478.00
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POSITION
MONTHLY WAGE
2014 2015 2016 2017 2018
ManagingPartner 20,000.00 20,600.00 21,200.00 21,800.00 22,400.00
ProductionPersonnel 8,520.00 8,780.00 9,040.00 9,300.00 9,560.00
OfficePersonnel 8,520.00 8,780.00 9,040.00 9,300.00 9,560.00
POSITIONMONTHLY WAGE
2014 2015 2016 2017 2018
ManagingPartner
240,000.00
247,200.00
254,400.00
261,600.00
268,800.00
ProductionPersonnel
102,240.00
105,360.00
108,480.00
111,600.00
114,720.00
Office
Personnel 102,240.00
105,360.00
108,480.00
111,600.00
114,720.00
e. Wages. This includes the compensation an employee receives
in a form of salary or bonus.
i. Time records. The office personnel are the one
responsible for the records in a log book. This will be the
basis of compensation to be given for each employee
aside from the manager. The time records of office
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personnel will be tracked by the manager for
independence.
ii. Payroll Deductions. This is for the withholding taxes and
other contributions as deemed necessary by the
government.
iii. Paycheck Distribution. Paychecks will be distributed by
the manager.
1. Error in Pay. For this instance. The employee
must feel free to inform the concern to the
manager.
2. Overtime. 20% of the hourly pay in excess of 8
hours a day.
iv. Working on Special Non-working Holidays. Employees
who will work during these days are bound to receive
another 50% of their daily wage for that specific date.
v. Payroll Advances. This will duly depend on the manager.
IV. Profession Standards.
a. Open door policy. Everyone is encouraged to speak out
whatever concern they have on the workplace.
b. Business Incentives given by customers shall be informed to the
manager for this may constitute conflict of interest in the
workplace.
c. Dress Code and Personal Appearance
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i. Manager must wear smart casual at all times as well as
the marketing and office personnel to inhibit professional
environment around the workplace.
ii. Production personnel and its staffs are bound to wear the
uniform provided by the management.
iii. Utility person may wear anything as long as it is not
vulgar or inappropriate.
V. Benefits
a. PhilHealth
b. SSS Membership
c. Pag-ibig Membership
d. Sick Leave Pay- Each full-time employee, as of the first
anniversary of his or her date of hire as a full-time employee,
will have available 48 hours of sick leave. Sick leave available
for a particular anniversary year cannot be carried over to future
anniversary years nor will the remaining available sick leave be
paid at the end of employee's current anniversary year.
Likewise, employees terminating employment will not be paid
any unused sick leave still available to them.
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The compensation scheme to be implemented by CMC Company is
derived from this table provided by Department of Labor and Employment
(DOLE)
DAILY MINIMUM WAGE RATES for National Capital Region (NCR)
Per Wage Order No. NCR-17
Effective: 01 November 2012
Table 2.3
Daily Minimum Wage Rate
Sector/Industry
Basic
Wage
after
COLA
Integration
COLA
Effective
3 June
2012
COLA
Effective
11/1/12
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
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Manufacturing
Establishments regularly
employing less than 10
workers
P 389.00 P 20.00 P 10.00 P 419.00
Source: http://www.nwpc.dole.gov.ph/pages/ncr/cmwr_table.html
a. This 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.
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 wage.
b. P30.00 COLA per day to be given into two (2) tranches:
> P20.00/day upon effectively of this Wage Order.
> P10.00/day effective November 1, 2012
http://www.nwpc.dole.gov.ph/pages/ncr/cmwr_table.htmlhttp://www.nwpc.dole.gov.ph/pages/ncr/cmwr_table.htmlhttp://www.nwpc.dole.gov.ph/pages/ncr/cmwr_table.html7/30/2019 Paper n Tlga
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Figure 2.2
Gantt Chart for Management
Activities2013 2014
Jan Feb March April May June July Aug Sept Oct Nov December January
Feasibility Study
Business Registration
Capital Accumulation
Site Completion
Equipment Acquisition
Supplies Acquisition
Hiring of Employees
Training of Employees
Promotional Activities
Blessing
Start of Normal Operation
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Legal Requirements
Aforementioned on the commencement for the operation of business,
law requires prescription on securing necessary permits and licenses. The
following government agencies together with the requirements, in which CMC
Company has to comply, are as follows:
Barangay Clearance
Can be get to the barangay hall for the business to operate.
Secure Mayors Permit
Obtained from the local municipality where the business is located.
1. Go to the Business Permits Office, located at the 2nd floor
Room 209 of the Pasay City Hall, and have the receiving or
processing clerks furnish you an application form and inform
you of the requirements.
2. Proceed to the Engineering Department at the 3rd floor and
have them Order of Payment for your Annual Inspection fees for
building, electrical, plumbing, mechanical, and other
requirements. Then proceed to the City Planning and
Development Office 2nd floor Room 216 and have them also
Order of Payment for Location Clearance fee.
3. Proceed to BPLO 2nd floor Rm. 209 for your Business Account
Number (BAN).
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4. Proceed to Ground floor Rm. 103 Treasury office for your
Assessment of
taxes and fees, pay the necessary amount at the Teller Division
and secure an official receipt.
5. After payment, proceed to the following office for counter-signed
of the Business Permit application.
Rm. 116 Sanitation Office
Rm. 216 City Planning and Development Office
Rm. 219 Tourism Office
Rm. 315 Engineering Office
City Fire Marshall (Dolores St., in front of Pasay City
Cockpit)
6. Go back to the Business Permit for the Mayor's permit and
approved business permit/license
Department of Trade and Industries
Reserve and register your business name
Securities and Exchange Commission (SEC)
Basic Requirements
1. Name Verification Slip;
2. Articles of Partnership; and
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3. Joint affidavit of two partners undertaking to change partnership name,
provided in its Articles of Partnership or as amended thereafter,
immediately upon receipt of notice or directive from the Securities and
Exchange Commission that another corporation, partnership, or person
has acquired a prior right to the use of that name or that name has
been declared misleading, deceptive, confusingly, similar to a
registered name, or contrary to public morals, good customs, or public
policy (not required if Articles of Partnership has provision on this
commitment).
Additional requirements
1. Endorsement/clearance from other government agencies, if applicable
2. For partnership with foreign partners
a. SEC Form No. F- 105
b. Bank certificate on the capital contribution of the partners
c. For foreign partners who want to register their investments with
the BSP: Proof of remittance
Social Security System (SSS)
In partnership, any of the partners of a partnership firm should
accomplish SSS Forms R-1 (Employers Data Record) and R-1A (Initial or
Subsequent List of Employees) and submit these forms together with a
photocopy of the Articles of Partnership. The original copy of the Articles of
Partnership must be presented for authentication.
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Department of Labor and Employment (DOLE)
For businesses with five workers or more
Business Permit and License Requirements
1. Location Clearance Prior to Business Permit. (New Applicants &
Change of Business Address ONLY)
2. Lease Contract between the Lessor and the Lessee. If leased, attach
Mayors Permit registration of the building owner/landlord as a Real
Estate Lessor. If not, Lease Contract between the Lessee and the Sub-
Lessee with conformity of the Owner of the Building Administration. If
owned, transfer Certificate of Title (TCT) or Tax Declaration
(photocopy). (New Applicants & Change of Business Address ONLY)
3. Article of Incorporations Partnership (approved by S.E.C.) (New
Applicants ONLY)
4. Barangay Clearance.
5. Public Liability Insurance.
6. Financial Statement of Assets and Liabilities / B.I.R. Income Tax
Return. (For Renewal ONLY)
7. Resident Certificate
Securities and Exchange Commission (SEC) Registration Requirements
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1. Name Verification slip.
2. Articles of Partnership.
3. Registration Data Sheet.
4. If it is Limited Partnership, the word Limited is added to the name.
Articles of limited partnership should always be under oath on
(JURAT) and not acknowledged by the partners before a notary public.
5. Partnerships need clearance from concerned government agencies.
6. License of custom brokers for custom brokerage
7. For Foreign partnerships:
Foreign Investment Agent Application Form
Proof of Inward Remittance of non-resident alien partner or affidavit
manifesting intention not to register investment with the Bangko
Sentral ng Pilipinas.
If the document was signed abroad, it must be authenticated by
the Philippine Consular Office in the country it was executed.
8. If franchise holder of business name
Certified photocopy of franchise agreement (to be certified either
by the franchisor or franchisee).
Photocopy of the franchisors business name certificate
Procedure:
Secure name verification slip from the Records Division.
Proceed to Cashier for payment of filing fee.
Submit documents to the Receiving Unit of the Records Section.
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The documents are then forwarded to the company Registration and
Monitoring Department (CRMD) and assigned to processors.
Typing pool prepares Certificate of Registration and returns to a
processor (or a lawyer) and Assistant Director for initials.
Director of CRMD signs the Certificate of Partnership.
The certificate of registration is forwarded to the Releasing Unit of the
Records Division (ground floor), where it may be claimed by the
applicant upon presentation of receipt as proof of payment of the filing
fee
Bureau of Internal Revenue
Tax Form BIR Form 1903 Application for Registration for
Corporations/Partnerships (Taxable/Non Taxable), including GAIs and LGUs
Documentary Requirements:
SEC Certificate of Registration (Certificate of
Incorporation/Certificate of Co-Partnership) or License To Do
Business in the Philippines in case of resident foreign corporation
Mayors Permit or application for Mayors Permit to be submitted
prior to the issuance of the BIR Certificate of Registration
Procedures:
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Accomplish BIR Form 1903 and submit the same together with the
required attachments to the Revenue District Office having jurisdiction
over the registered address of the business establishment.
Pay the Annual Registration Fee (P 500.00) at the Authorized Agent
Banks of the RDO.
Pay P 15.00 for the Certification Fee and P 15.00 for the Documentary
Stamp Tax (in loose form to be attached to Form 2303).
The RDO shall issue the Certificate of Registration (Form
2303).Taxpayer must pay the Documentary Stamp Tax on the Articles
of Incorporation as prescribed under Section 175 of the NIRC, on the
5th
of the month following the date of issuance of said article (per RR 4-
2000).
Deadline: Corporations/partnerships/joint ventures shall accomplish and file
the application before the commencement of the business operation.
Generalization
Management is one of the most fundamental parts of starting up a
business, in relation to this, it is important to have effective organizational
structure and once through this, everything will follow.
Job qualification and specification when significantly addressed makes
the human force adequate for the whole business enterprise. Thus, in terms
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of this subject, the researchers plotted specifically what kind of people CMC
Company will need to properly perform the business transactions as planned.
Salary is one of the go-getters of the prospective employees, so in order to
get quality workers; there must be corresponding salary scheme.
Gantt chart must be followed to effectively do the business transaction.
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use not only for sanitizing, but also for other purposes like acting as an
mosquito repellent.
Subjects of the study
Men and women residing in Pasay City that ages 15 to 44 years old
were the subject respondents for this feasibility study. The researches have
chosen them since it is very evident that teen age individuals are fond of
buying products like hand sanitizers because it appears to be trendy.
Consequently, individuals aging above the teen age also tend to buy hand
sanitizer for their own consumption as well as for their children. Many people
nowadays are being fond of using personal care products like hand sanitizer
due to awareness to some viruses that they can avoid by being hygienic.
Data gathering instrument
Survey questionnaires were the instrument used by the researchers to
gather information. This is an effective way of data collection since it gives its
respondents to answer with all their knowledge and truthfulness the survey
questionnaires provided by the researchers. The researchers prepared the
questionnaires depending on the data that they will need.
Data gathering procedure
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Distribution of survey questionnaires took place on some different places in
Pasay City. Data gathering of the respondents through survey took for less
than one week. During the research and collection of information for this
study, a survey was done and distributed to 100 respondents of different age
bracket who had been at sight, roaming within the vicinity of the proposed
business location.
Projected Population
Below is the figure that shows the projected population in Pasay that whom
the researcher will be conducting the survey.
Figure 3.1
Projected Population
Market Survey Results
214000
216000
218000
220000
222000
224000
226000
228000
230000
232000
1 2 3 4 5
Projected
Pop
ulation
Years
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Respondents Profile
Figure 3.2
Percentage of Respondents According to Age
The graph shows that out of 100 respondents, 30% of them were 15 to
19 years old, 42% ages 20 to 24 years old, 6% ages 25 to 29 years old, 8%
ages 30 to 34 years old, 5% ages 35 to 39 years old and 9% ages 40 to 44
years old.
Table 3.1
Age Bracket
Profile: Age Bracket
Response Respondents Percentage
15 to 19 30 30%
20 to 24 42 42%25 to 29 6 6%
30 to 34 8 8%
35 to 39 5 5%
40 to 44 9 9%
Total 100 100%
30%
42%
6%
8%
5%9%
15 to 19
20 to 24
25 to 29
30 to 34
35 to 39
40 to 44
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Figure 3.3
Percentage of Respondents According to Gender
Based on the survey conducted by the researchers, the respondents
composed mostly with the female group at 76% and 24% for the male group.
Table 3.2
Gender
Profile: Gender
Response Respondents Percentage
Male 24 24%
Female 76 76%
Total 100 100%
24%
76%
Male
Female
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Questions:
Figure 3.4
Percentage of Respondents who are fond of using hand sanitizer
According to the survey, 63% of the business target market is fond of
using hand sanitizer while 37% are not.
Table 3.3
Survey Question Number 1
Question: Are you fond of using personal care product like hand
sanitizer?
Response Respondents Percentage
Yes 63 63%
No 37 37%
Total 100 100%
63%
37%
Total
100
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Figure 3.5
Percentage of Respondents According to willingness of using personal
care product like hand sanitizer (answered No in the previous question)
From the 37% of respondents who are not fond of using personal care
product like hand sanitizer, 94.59% of which are willing to use and 5.41% of
which are not.
Table 3.4
Survey Question Number 2
Question: If no, are you willing to use personal care product like hand
sanitizer?
Response Respondents Percentage
Yes 35 94.59%
No 2 5.41%
Total 37 100%
95%
5%
Yes
No
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Figure 3.6
Percentage of Respondents According to where they usually want tobuy hand sanitizer
Most of the respondents usually buy their hand sanitizer in the grocery
stores as shown in the above table which has 36%, next is 28% at the
drugstores and 3% at the school auxiliary. The 33% of the respondents
answered the others section, stating the supplier and convenience stores.
Table 3.5
Survey Question Number 2
Question: Where do you usually buy hand sanitizer?
Response Respondents Percentage
Grocery 36 36%
Drug Store 28 28%
School Auxiliary 3 3%
Others 33 33%
Total 100 100%
36%
28%
3%
33% Grocery
Drug Store
School Auxiliary
Others
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Figure 3.7
Percentage of Respondents According to what they consider mostwhen buying hand sanitizer
Based on the survey done during the research for this study, it shows
that a consumer prefer most is the effectiveness of the product.
Table 3.6
Survey Question Number 4
Question: What do you consider most when buying hand sanitizer?
Response Respondents Percentage
Effectiveness 57 57%
Scent 22 22%
Promotional Activities 3 3%
Price 5 5%
Brand 13 13%
Total 100 100%
57%22%
3% 5%
13%
Effectiveness
Scent
Promotional Activities
Price
Brand
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Figure 3.8
Percentage of Respondents According to how many hand sanitizersthey usually buy monthly
Based on the survey, most of the respondents usually buy hand
sanitizers only once a month. On the other hand, respondents who buy hand
sanitizer twice and thrice a month covers the 35% and 2% respectively.
Table 3.7
Survey Question Number 5
Question: How many hand sanitizers (30mL) do you usually buy
monthly?
Response Respondents Percentage
One 63 63%
Two 35 35%
Three 2 2%
Four 0 0%Others 0 0%
Total 100 100%
63%
35%
2%
One
Two
Three
Four
Others
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Figure 3.9
Percentage of Respondents According to brand they usually use
The figure shows that the respondents usually used the Green Cross
and there are 3% who are using other brands such as Bactigel, Best buddy,
Sakura, Hygienix and Megan.
Table 3.7
Survey Question Number 6
Question: What brand of hand sanitizer do you usually use?
Response Respondents Percentage
Eskulin 6 6%
Green Cross 59 59%
Biohands 7 7%Bench 14 14%
Cleene 9 9%
Others 5 5%
Total 100 100%
6%
59%
7%
14%
9%
5%
Eskulin
Green Cross
BioHands
Bench
Cleene
Others
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Figure 3.10
Percentage of Respondents According to being able to see a handsanitizer with mosquito repellent
Some of the respondents (3%) had seen a hand sanitizer with
mosquito repellent and mostly (97%) havent yet. This survey result can
possibly mean that manufacturing hand sanitizer with insect repellent will
bring new option to the consumers.
Table 3.9
Survey Question Number 7
Question: Have you seen a hand sanitizer with mosquito repellent
Response Respondents Percentage
Yes 3 3%
No 97 97%
Total 100 100%
3%
97%
Yes
No
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Figure 3.11
Percentage of Respondents According to willingness to try handsanitizer with mosquito repellent
96% of the respondents are willing to try the hand had sanitizer with
mosquito repellent and the rest are not.
Table 3.9
Survey Question Number 8
Question: Are you willing to try hand sanitizer with mosquito repellent?
Response Respondents Percentage
Yes 96 96%
No 4 4%
Total 100 100%
96%
4%
Yes
No
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Figure 3.12
Percentage of Respondents According to how much they are willing topay for 30mL of Hand Sanitizer with insect repellent
Respondents, who are willing to pay P40 to P49 for a 30 mL hand
sanitizer with mosquito repellent, covers the majority (36%). On the other
hand, respondents who are willing to pay 50 to 60, 61 to 70, 71 to 80, 81 to
90 and 91 and above covers the 12%, 20%, 15%, 5% and 9%.
Table 3.10
Survey Question Number 9
Question: How much are you willing to pay for 30 mL hand sanitizer
with mosquito repellent?
Response Respondents Percentage
40 to 49 36 36%
50 to 60 12 12%
61 to 70 20 20%
71 to 80 15 15%
81 to 90 5 5%
91 and above 9 9%
Total 100 100%
36%
12%21%
15%
5%
9%
40-49
50-60
61-70
71-80
81-90
91 and above
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Projected Population
In order for the researchers to get the projected demand for the
product, they first have to compute for the projected population based on the
Special Release 2010 Census of Population and Housing Final Result
obtained by the proponents from Pasay City Hall, Community Planning Office,
which is 211,528 and continues to grow at a rate of 1.02% per year. Individual
of both sexes that ages 15 to 44 years old were the target market of the
respondents which is equivalent to 220,291 individuals. The following
information is used for the demand projections for the next 5 years.
To get the sample space, the respondents used the Slovens Formula.
Slovens Formula
Based on the formula, it is said that 100 respondents is the sample
space given a 10% margin of error.
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Table 3.11
Projected Population
Year Growth Rate Projected Population
2009 205,182.162010 - 211,528.00
2011 1.0102 213,685.59
2012 1.0102 215,865.18
2013 1.0102 218,067.00
Table 3.12
Projected Population
Year Growth Rate Projected Population2014 1.0102 220,291
2015 1.0102 222,538
2016 1.0102 224,808
2017 1.0102 227,101
2018 1.0102 229,418
DEMAND AND SUPPLY ANALYSIS
Demand Analysis
Table 3.13
Historical Demand
Year Projected Population Annual Consumption Projected Demand2009 205,182.16 17 3,488,096.72
2010 211,528.00 17 3,595,976.00
2011 213,685.59 17 3,632,654.96
2012 215,865.18 17 3,669,708.04
2013 218,067.00 17 3,707,139.06
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Table 3.14
Projected Demand
Year Projected Population Annual Consumption Projected Demand
2014 220,291.29 17 3,744,9522015 222,538.26 17 3,783,150
2016 224,808.15 17 3,821,739
2017 227,101.19 17 3,860,720
2018 229,417.62 17 3,900,100
The demand increases as the population also increases. Based on the survey
results, it showed that 96% of the consumers are willing to buy PreppyHands
Hand Sanitize
Supply Analysis
As the researchers gather data for this study, they conducted an informal
interview with the crews of different establishments to serve as basis for the
supply situation.
Table 3.15
Historical Supply
Year Projected Supply
2009 1,493,119
2010 1,580,949
2011 1,651,213
2012 1,721,478
2013 1,756,610
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Table 3.16
Projected Supply
Year Projected Supply
2014 1,809,3082015 1,862,007
2016 1,914,705
2017 1,967,403
2018 2,020,102
Table 3.17
Market Gap
Year Projected Demand Projected Supply Market Gap
2014 3,744,952 1,809,308 1,935,644
2015 3,783,150 1,862,007 1,921,144
2016 3,821,739 1,914,705 1,907,034
2017 3,860,720 1,967,403 1,893,317
2018 3,900,100 2,020,102 1,879,998
Table 3.18
Market Share
Year Market Gap Annual Production Market Share
2014 1,935,644 48,000 2.48%
2015 1,921,144 54,000 2.81%
2016 1,907,034 60,000 3.15%
2017 1,893,317 60,000 3.17%
2018 1,879,998 60,000 3.19%
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Market Strategy
In order for PreppyHands Hand Sanitizer to penetrate the market,
CMC Company must consider proper marketing strategy. Since using internet
is being rampant nowadays, this appears to be one of the most effective ways
of making your market aware of your product. Most of the people are using
internet to socialize and commercialize their products. Aside from vast
network being created by the internet, it is also cheaper compared in making
TV commercials. Thus, for a starting up business with an initial investment
less than P2 million, internet is a better start for creating a market.
Product Strategy
PreppyHands Hand Sanitizer is a product that concentrates in personal
care, specifically in hygienic means. Its very convenient nature works well in
his anti mosquito properties. Because of its ingredients such as Aloe Vera
gel, essential oils, and witch hazel extracts, this product tends to be effective
with a reasonable price.
In terms of uses, PreppyHands Hand Sanitizer does not only provide
an anti microbial efficacy, but it can also be used as a mosquito repellent. It is
a product that sanitizes the hands without the use of soap and water, making
it a substitute mostly on the peaks of your times.
Category
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PreppyHands Hand Sanitizer falls under the personal care category of
products.
Price Strategy
Since the business will be located at Pasay City, the price strategy that
will be used in this product will depend to the target market. In relation to this,
we will sell our product at a very reasonable price in which our market could
afford without compromising its quality.
Place Strategy
Pasay City is one of the most urbanized places around Metro Manila. It
comprises different educational institutions and hospital which basically caters
a lot of individuals. Even Pasay City had been noted as the third smallest
political subdivision in National Capital Region, the mere fact that Pasay City
General Hospital, churches and educational establishments are erected there
constitutes that many people constantly go there. Pasay City is somehow the
best place to put up a hand sanitizer manufacturing business. Aside from
easier access to CMC Company target, there are still some possibilities that
more individuals will get into there since the main office and
CMC Company plant is near establishments such as hospital, church and
schools.
Promotion Strategy
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The product, all-in-one eco friendly hand sanitizer, serves as the
promotional strategy for the company itself. The given fact that it is non-
alcohol natural hand sanitizer is going to play as its edge among its
competitor hand sanitizers available in the market nowadays. Being a
company which encompasses the brigade for a greener tomorrow, the
product itself will carry the slogan Yes to green, No to germs which defines
the brigade for eco friendly products trend as well as its sanitizing effects.
Promotional advances are important in this kind of business since not
everyone is aware to this kind of product. Due to this fact, we will use
following advertising strategies:
1. World Wide Web
2. Print ads and flyers
3. Free samples
Our World Wide Web advertisement consists of advertisement through
social networking sites such as Facebook, Twitter, Ayos Dito, Sulit and
MySpace, and also by putting up our PreppyHands Manufacturing Companys
own website. This kind of promotional strategy gives us more access to
broader market, not only in Pasay City, but to the whole world as well. This
opens doors to more customers and greater chances of having greater profits
without being too costly like commercials.
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Print ads and Flyers will be designed appropriately for the product,
constituting classy, cute, sanitizing and catchy features. These will be
distributed along the main office as well as during sponsorship events.
Giving free samples once in a while is one way of promoting CMC
Companys PreppyHands Hand Sanitizer to the market. By this way, it will
give individuals the chance of trying the product for free and then buy their
own if impressed.
Figure 3.13
Facebook Page
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The figure above shows the proposed Facebook account of
PreppyHands Hand Sanitizer. Pink and green are the primary colors used by
the researches since those were the trademark of CMC Companys
PreppyHands Hand Sanitizer. This Facebook account will also be one way of
knowing the PreppyHands Hand Sanitizer.
Figure 3.14
Twitter Page
This is the proposed Twitter account for PreppyHands Hand Sanitizer.
The researchers agreed that the page must be a girly type and carries the
trade colors of the company. This account will be used in making updates
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regarding the product as well as other informative Information. This will serve
as CMC Companys way of interaction to their clients.
Distribution Channel
The supplies will then be gathered from its respective suppliers to be
transferred to CMC Company in order to be processed. Certain procedures of
manufacturing will be done by CMC in order to come up with the finished
product, hand sanitizer, which will sold to our target market which are the
male and female at the age of 14-60 years old at Pasay City. Expansion of
plant layout and capacity will then be subjected depending on the first 5 years
of performance. If CMC Company appeared to be profitable for these years,
then it will consider expansion.
Figure 3.15
Distribution Channel
Supplier of
Raw Materials
Supplier of
Bottles
Manufacturing
of Products Retailer
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Packaging and Labeling
In regards with the packaging of PreppyHands Hand Sanitizer, we
decided to serve it in a box containing twenty four (24) pieces of the product.
Table 3.19 shows the distribution cost
Table 3.19
Packaging and Labeling
Particulars 2014 2015 2016 2017 2018
Label 72,000.00 83,430.00 95,481.00 98,345.43 101,295.
79
Plastic Bottles 96,000.00 111,240.00 127,308.00 131,127.24 135,061.
06
Box 6,000.00 6,952.50 7,956.75 8,195.458,441.32
Total 174,000.00 201,622.50 230,745.75 237,668.12 244,798.
17
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SWOT Analysis
Figure 3.16
SWOT Analysis
Strengths
Affordable price
Natural and eco friendly
product
New to market
Threats
Risk of being new entrant in
personal care industry.
Risk of not being able to make
innovations of the product after 5
years.
Opportunities
Product can be sold even
beyond CMC Companys
target market.
Weaknesses
Less storage life
Subject to further
researchers and innovation.
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Product Logo
Figure 3.17
Product Logo
PreppyHands Hand Sanitizer is a product that constitutes qualities that
must always work together elegance intact with health sensitivity. In doing
the logo, CMC Company owners decided to use pink and green to use as the
primary colors. Green, being associated with nature, health, healing and the
environment, creates a sense of compassion and nurturing. It is a very ideal
color to promote this natural environment-friendly product.
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Company Logo
Figure 3.18
Company Logo
CMC Company is the name of the propsed partnership to manufacture
the PreppyHands Hand Sanitizer. CMC Companys name originated by the
combination of the partners first name initials which are C, M and C which
stands for Charmaine, Maria and Cristel. Green and pink had been chosen
since this partnership will be owned by an all-girl group. Pink suggests
femininity and green symbolizes calmness. The font used in this logo was
chosen because of its simplicity and elegance which the partners hope to
initiate to their clients. The shape beside the company illustrates a soft touch
of calmness and foundation.
Generalization
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Marketing will constitute a great impact on the companys success.
Demand and Supply are computed based on the projected population and
market survey and assumptions. Men and women residing in Pasay City that
ages 15 to 44 years old were the subject respondents for this feasibility study.
The researches have chosen them since it is very evident that teen age
individuals are fond of buying products like hand sanitizers because it
appears to be trendy.
The price strategy that will be used in this product will depend to on the
production costs and competitors. In relation to this, we will sell our product at
a very reasonable price in which our market could afford without
compromising its quality.
PreppyHands Hand Sanitizer is a product that concentrates in personal
care, specifically in hygienic means. Its very convenient nature works well in
his anti mosquito properties. Because of its ingredients such as Aloe Vera
gel, essential oils and witch hazel extracts, this product tend to be effective
with a reasonable price.
In terms of uses, PreppyHands Hand Sanitizer does not only provide
an anti microbial efficacy, but it can also be used as a mosquito repellent. It is
a product that sanitizes the hands without the use of soap and water, making
it a substitute mostly on the peaks of your times. These qualities are some of
the basis why PreppyHands Hand Sanitizer can possibly penetrate the
market.
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product that sanitizes the hands without the use of soap and water, making it
a substitute mostly on the peaks of your times.
Manufacturing Process
CMC Company is an entity that manufactures an all-in-one hand
sanitizer with mosquito repellent, agents for mosquito bites moisturizer,
soothing scent and healing, promotes hygienic living with the touch of class
and eco-friendly trend. This chapter will focus on how this all-in-one hand
sanitizer is manufactured, including its production process and the materials
needed.
The process in making hand sanitizer as well as the raw materials will
differ depending on the qualities of the product, whether it is in a form of
foam, liquid, gel or wipes.
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Table 4.1
Raw Materials
Particulars Description
Aloe Vera Gel - It came from the
plant aloe Vera which is a stem less
or very short-stemmed succulent
plant It has no alcohol, no
chemicals, no fragrances and no
coloring that may dry your skin and
cause irritations. It helps retain
moisture and promotes healing
which is some of its uses. Others
are, it was use for shaving gel, for
sunburn, acne, skin irritations, and
mosquito bites
Tea Tree Oil - is an essential oil
obtained by steam distillation of the
leaves of Melaleucaalternifolia,
commonly known as narrow-leaved
tea tree, a plant native to Australia.
It contains elements called
terpenoids which have been found
to have antiseptic and antifungal
activity. Tea tree oil is applied to the
skin for infections such as acne,
fungal infections of the nail, lice,
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athletes foot and ring worm.
Lavender Oil - It has fresh, sweet,floral, aroma that is soothing and
refreshing. Lavender essential oil
has ability to nervous tension,
relieve pain, disinfect scalp and skin,
enhance blood circulation and treat
respiratory problems. It has also
been traditionally used in making
perfumes. This oil is very useful in
aromatherapy and many aromatic
preparations are made. Lavender
essential oil is used in various forms
including aromatherapy oil, gels,
infusion, lotion and soaps as well as
hand sanitizer.
Citronella Oil - It has slightly sweet,
lemony smell. It has slightly sweet,
lemony smell. This oil can be used
for balancing oily skin, fighting
excessive perspiration and it is used
as a repellent for insect such as
mosquitoes, black flies and fleas
and therefore, preventing its bites.
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Witch Hazel is an astringent skin
cleanser containing natural witch
hazel. It gently tones and cleanses
the skin removing excess oils and
tightens skin, not only that but its
also good in anti- itch remedy when
it was combined to aloe, glycerin or
petroleum jelly. And in the hand
sanitizer, it will be mix to the aloe
Vera to lessen its viscosity.
The raw materials shown above were the ingredients in order to
manufacture the hand sanitizer proposed in this feasibility study.
Physical and Chemical Properties
Tea tree Oil
Odor Spicy
Taste Not Available
Color ColorlessBoiling Point Not Available
Melting Point Not Available
Dispersion Properties Not dispersed in cold and hot water
Solubility Insoluble in hot water
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Citronella Extract
Physical State Liquid
Odor Pungent, fruity
Color Colorless to light yellow
Boiling Point 200CMelting Point Not Available
Dispersion Properties Not Available
Solubility Partially soluble in cold water
Witch Hazel Extract
Physical State Liquid
Odor Strong
Color Clean Colorless
Boiling Point 88CMelting Point (8)C
Dispersion Properties Not Available
Solubility Easily soluble in cold and hot water.Soluble in methanol, diethyl ether,acetone
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Annual Quantity Requirements
Table 4.2 shows the quantity of raw materials that will be using in the production annually.
ITEM 2014 2015 2016 2017 2018 TOTAL
Aloe Vera Gel 1,200 L 1,296 L 1,399.68L 1,511.65 L 1,632.59 L 7,040 L
Tea Tree Oil 19.2 L 20.74 L 22.39 L 24.19 L 26.12 L 112.64 L
Citronella Oil 14.4 L 15.55 L 16.80 L 18.14 L 19.59 L 84.48 L
Lavender Oil 14.4 L 15.55 L 16.80 L 18.14 L 19.59 L 84.48 L
Witch Hazel Extract 192 L 207.36 L 223.95 L 241.86 L 261.21 L 1,126.39 L
Table 4.2Annual Raw Materials Requirement
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Cost of Raw Materials
Table 4.3 shows the cost of raw materials daily that will be using for
the production.
ITEM QUANTITY UNIT PRICE TOTAL AMOUNT
Aloe Vera Gel 5L 600/ L 3,000
Tea Tree Oil 80 ml 825/ L 66
Citronella Oil 60 ml 1,200/ L 72
Lavender Oil 60 ml 825/ L 49.5
Witch Hazel Extract 800 ml 200/ L 160
TOTAL 3,347.50
Table 4.3
Cost of Raw Materials
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Process Flow
Chart
Figure 4.2
Flow Chart
Prepare raw materials.
Measure the materials needed for production.
The Production officer will evaluate the
measurement.
Are the measurements
accurate?
Put the materials in the mixer.
Start the mixing process.
Does the product
properly done?
Start the acka in rocess.
Yes No Go back to Step 2
Dispose the
product that did
not pass the
quality control.
Go back to step 1
YesNo
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Figure 4.3
Gantt chart
ProductionProcess
1 hour 1 hour 1 hour 1 hour 1 hour 1 hour
15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15
Preparationof RawMaterials
Measurementof
Ingredients
Evaluation ofMeasurement
Putting RawMaterials inthe machine
Raw MaterialProcessing
QualityControl
Packaging
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Step 1 Preparation of ingredients and equipment (15 minutes)
To start the production, prepare the necessary ingredients and equipment
needed for making the product.
Step 2 Measurements of the ingredients (45 minutes)
Improper measurement of the ingredients may affect the effectiveness and
texture of the product. Measurement must be properly monitored.
Step 3 Evaluation of measurement (45 minutes)
The production officer will evaluate the measurements to determine whether
the ingredients are properly measured to achieve the standard measurement.
Step 4 Putting the raw materials in the machine (15 minutes)
It is important to put the raw materials in the machine properly and gently to
avoid the disposal of it. The first raw material to be put is the aloe vera. Next
are the essential oils, such as tea tree oil, lavender oil and citronella oil, and
the witch hazel.
Step 5 Raw Material Processing (1 hour)
Using mixing machine helps mixing the ingredients properly and faster than
manual mixing
Step 6 Assessing the quality control (1 hour)
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Having quality control helps to maintain the standard required for the product.
If the product did not achieve the required standard go back step 1 to adjust
the
measurement of the ingredients put.
Step 7Packaging (1 hr. and 30 minutes)
There will be an equipment to be used for packaging, thus, lessening the time
and manpower requirement. The bottle or container is then put to the
equipment and let it be filled accordingly to its size. After that, the finished
products will then be packaged depending on its volume.
Production Schedule
The table shows the daily, monthly and annual production that CMC
Company can produced. It is important to identify to know the minimum and
maximum capacity of the plant and its capacity to use its resources. The CMC
Company would be having 8 hours a day, 5 days a week, and 20 days a
month. We assume that the production would be increase 8% annually.
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Table 4.4Production Schedule
Machinery and Equipments
Factory
Year Daily Monthly Annually
2014 200 4,000 48,000
2015 216 4,320 51,840
2016 233 4,666 55,987
2017 252 5,039 60,466
2018 272 5,442 65,303
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Hand Sanitizer Making Machine
This liquid wash making machine that will use is multifunctional .It can
make hand sanitizer, shampoo, bath foam, dish washing soap, and laundry
liquid detergent and others alike.As for the manufacturer, the material of
machine is food-grade stainless steel. This machine is said to adopt
frequency conversion operation; variable frequency regulating speed makes
the operation efficient and easy. The machine structure setting is simple
according to the manufacturer; no need for engineer, few workers, you can
just assemble pipes provided by them directly with the serial numbers and
instructive pictures and specification, thus, lessening the costs for factory
overhead costs. The total production line of this machinery includes making
machine, filling machine, and controller cabinet.
Availability of the spare parts
In terms of availability of spare parts during unexpected irregularity to
the machine, the supplier will provide spare parts upon delivery which CMC
Company will be using. Supplier will provide some common wearing parts to
CMC Company together with the machine after the purchase of machine. If
some parts of the machine will be damaged, the supplier will send some new
spare parts via express company.
Selection of Supplier
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CMC Company had chosen the supplier of the machine thru
alibaba.com in consideration to the cost and use of the machine needed for
the production.
Quotation from the Supplier
Based on the suppliers quotation, small production line of 300 pieces
(30mL) per hour will cost PHP 80,000.
Arrangements with the supplier
As discussed by the sales representative of the supplier, they will send
the machinery by sea and accept Telegraphic Transfer as the payment
scheme. CMC Company will have to pay 50% down payment as a deposit
and consequently, they will prepare the machine within a span of 15 working
days. CMC Company representative whose in-charge has the option to visit
the supplier to receive training on machine operation but if this will not be
possible, CMC Company will be demanded to pay the balance left. Upon
settlement of the obligation, the supplier will send the machine set together
with some technical documents, formula and operation to be able to grasp the
machine operation very easily.
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Exhaust Fan. This will be used in the
workshop and storage room to control
the room temperature.
Table 4.5
Factory Equipment
Particulars Amount Useful Life
Machine 80,000.00 15
Exhaust Fan 1,540.00 5
Total 81,540.00
A. Office
This is a desktop computer which
CMC will need in preparing financial
statements, managing social
networking sites and other clerical
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activities needed for the operation. This computer set consists of a monitor,
central processing unit (CPU), a mouse and audio output accessory.
Availability of the spare parts
Spare parts are easily available since computers are being used in
many different organizations and individuals. In terms of system breakdowns,
the desktop computer acquired can be brought to the supplier for fixing.
Selection of Supplier
CMC Company had chosen the supplier of the machine thru
canvassing in different computer retail shops in consideration to the cost and
use of the machine needed for the production.
Quotation from the Supplier
Based on the suppliers quotation, a desktop computer with a good
quality will cost P20, 000.00.
Reliability of the supplier
HDCC Computer Trading is a company known by the partners.
Based on the personal transactions before, it has been evidential that the
supplier is reliable in providing the product.
This is the type of printer that CMC
Company will need in printing out
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business related transactions and other documents. This is an all-in-one
printer with scanner and photocopier.
Availability of the spare parts
Spare parts will not be needed since Canon MP258 is a color inkjet
printer that can print, scan and copy that can handle 100 pages of paper per
printing session.
Selection of Supplier
CMC Company had chosen the supplier of the printer thru canvassing
in different computer retail shops and online stores in consideration to the
cost and use of the machine.
Quotation from the Supplier
Based on the suppliers quotation, a Canon Pixma Printer with a good
quality will cost P5,000.00
Arrangements with the supplier
As discussed with the supplier, CMC Company will have to pay the
printer in cash upon delivery. The desktop computer will carry one (1) year
service warranty.
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This is a Stand Fan. This will be used as
alternative for air-conditioned during peak
hours.
A calculator will be used for quick
computations and other related
transactions.
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Table 4.6
Office Equipment
Particulars Amount Useful Life
Computer 20,00.00 5
Printer 5,000.00 5
Stand Fan 1,500.00 5
Calculator 180.00 5
Total 26,680.00
Furniture and Fixtures
A. Factory
This working table will be used in the
packaging process of manufacturing the
hand sanitizers.
These chairs will be used by the
production workers for their own
convenience.
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Table 4.7
Factory Furniture
Particulars Amount Useful Life
Working Table 892.86 5
Mono block Chair 133.93 5
Total 1,026.79
B. Office
This office desk will be used by
the manager and office personnel
in doing their tasks. This is where
their respective computers will be
placed and will also serve as their
working tables.
Swivel chairs will be used by the
manager and office personnel as a
counter part of their tables which
enable them to be more efficient in
their duties as well as for their own
convenience.
Files and other documents held by
CMC Company will be stored in a
filing cabinet
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This foldable table will be used as a
cupboard for coffee and foods which
will be available in the office for the
benefit of the employees and all
employees.
Table 4.8Office Furniture
Cleaning Materials
This mop will be used as cleaning
material for the workshop and also for
the office. This comes with pail and
dipperamounting to P500.00.
Office Furniture Amount Useful Life
Office Table 3,000.00 5
Swivel Chair 2,000.00 5
Foldable Table 200.00 5
Bench 2,000.00 5
Cabinet 3,000.00 5
Inventory Shelf 3,000.00 5Total 13,200.00
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Rag will be placed in front of door
to minimize dirt coming inside the
office, thus maintaining its
cleanliness. This will cost P35.00
each to be bought in Baclaran
Table 4.9
Cleaning Materials
Particulars Quantity Unit Price Amount
Dust Pan 1 50.00 50.00
Mop Set 1 350 350.00
Rags 20 3.25 65.00
Rugs 4 25.00 100.00
Garbage Bag 50 5.00 250.00Garbage Bin 2 100.00 200.00
Detergent 24 10.00 240.00
Broom 2 150.00 300.00
Space Improvements 10,000
Total 11,555
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Other tools and Equipments
Measuring Cups will be used to
measure the raw materials to be put on
the machine before processing. This is
to ensure the consistency of formula to
be used in making hand sanitizer with
insect repellent.
Weighing Scale will be used to weigh
the products accordingly to ensure that
they all weigh the same. This is for
uniformity of the product as well as
quailty control.
Table 4.9
Other Tools & Equipment
Particulars Amount Useful Life
Measuring Cups 500.00 5Weighing Scale 750.00 5
Total 1,250.00
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Miscellaneous
Gloves will be used by the production
personnel for sanitation purposes.
T-shirt will be used as uniform for the
production personnel.
Table 4.10
Miscellaneous Expense
Particulars Quantity Unit Price Amount
Particulars Quantity Unit Price Amount
Gloves 240 10.00 2,400.00Hairnet 10 10.00 100.00
T-Shirt 1 250.00 250.00
Total 2,750.00
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Table 4.11
Office Supplies
Particulars Quantity Unit Price Amount
Stapler 1 100.00 100.00
Puncher 1 75.00 75.00
Paste 1 20.00 20.00
Pens 1 box 150.00 150.00
Pencil 1 box 150.00 150.00
Marker 1 box 150.00 150.00Flash Drive 2 250.00 500.00
Paper Clips 5 10.00 50.00
Staple Wires 5 10.00 50.00
Accounting Books 1 set 400.00 400.00
Folders 3 pack 15.00 45.00
Envelopes 3 pack 15.00 45.00
Bond Paper - S 1 rim 200.00 200.00
Bond Paper - L 1 rim 200.00 200.00
Ink 2 set 1,500.00 3,000.00
Fire Extinguisher 2 1,200.00 1,400.00Receipts 2,000.00 2,000.00
Total 8,535.00
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Table 4.12
Repairs and Maintenance
Schedule No. 4 - Repairs & Maintenance
Particulars Quantity Amount
Dust Pan 1 50.00Mop Set 1 350.00
Rags 20 65.00
Rugs 4 100.00
Garbage Bag 50 250.00
Garbage Bin 2 200.00
Detergent 24 240.00
Broom 2 300.00
Space Improvements 10,000.00
Total Repairs & Maintenance 11,555.00
Plant Location
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Figure 4.4
Plant Location
This is the location map wherein CMC Companys office and plant
will take place. This area is near to its prospective markets and the place
wherein CMC Company will supply its products. The place is near the road
and LRT station, wherein a lot of vehicles and people pass by.
Plant Layout
Figure 4.5
Office and Plant Layout
a. Plant Layout Description
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The main office and plant of CMC Company will come as one
consisting seven (7) rooms for the storage room of raw materials, wastage,
workshop (wherein the main machine will be located), finished products
utilities, toilet and kitchenette.
b. Layout Effect on Production Flow
Based on the office and plant layout of CMC Company, the first
transaction which is purchasing of raw materials will start at the office then the
materials will be stored in the stock room to be manufactured latter in the
workshop. The finished products will then be stored in the inventories section
and will be purchased on the office. The placing of the rooms has a significant
effect on the production flow. Processes that will happen consequently are
near with each other in order to promote efficient production schedule.
Utilities
In order to start the normal business operation of the business, there
will always be a need for utilities such as electricity, telecommunication
services and water. These will be presented in this section:
Users
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The main individuals that will consume most of these utilities were
the office and production personnel. These include the manager, and office,
marketing and production personnel.
Quantity required
This will depend on the operation of the business from time to time.
Availability
Electricity, water and telecommunication services will be available
from the time of application and settlement of dues from the respective
sources. For the direct materials, raw materials will be purchased at Quezon
City and indirect materials will be purchased near the plant/main office of
CMC Company.
Sources
The main source for electricity will be Meralco, Maynilad for water
and Smart Telecommunications and Bayantel for telecommunication services
needed by CMC Company.
Reason for chosen source
1. Meralco has been chosen since solar panel installation and
generator are costly for a newly opened business. CMC
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Company prefers to pay monthly bills based on their monthly
consumptions.
2. Maynilad had been chosen since it provides faster service
installation and repairs based on partners experiences.
3. Sun Cellular provides fast and reliable internet connection
with a reasonable price.
4. BAYANTEL offers cheap rates for local calls that come up.
Table 4.13 shows the utility expenses annually
Table 4.13
Utilities Expense
Particulars 2014 2015 2016 2017 2018
Electricity 62,448.48 64,321.93 66,251.59 68,239.14 70,286.31
Water 6,000.00 6,180.00 6,365.40 6,556.36 6,753.05
Telecommunication 19,188.00 19,188.00 19,188.00 19,188.00 19,188.00
Total 87,636.48 89,689.93 91,804.99 93,983.50 96,227.36
Direct Labor Requirements
Human resources are important in achieving any company objectives.
It is in their hands and minds that the realization of plans and goals will take
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effect. Thus entire manpower must have the necessary skills, attitude and
interest to carry out the business.
Waste Disposal
Every operating day as inputs are being utilized, not all of this all
resources are maximized. Effective management also calls for effective
disposal of waste materials. Manufacturer of Hand Sanitizer with Mosquito
Repellent should be aware of proper waste management system in order to
maintain cleanliness and orderliness within the enterprise.
Waste material will be properly sorted in trash bags and the garbage
collector will collect it. In addition, as a part of the waste management
program, scrap papers will be used in printing papers and documenting
reports. Empty plastic bottles of raw materials used will be donated to the city
government garbage collectors. This will be one of the ways that CMC
Company could to do help the whole community.
Generalization
The product is primary made up of witch hazel extract, Aloe Vera Gel
and essential oils, just right for an environmental cause. The partnership
office and plant site will be located in Pasay City. This place had been chosen
by the researchers because of its convenience. It is place that is near to the
market, public hospital, educational institution, residential area and
commercial locale where our target market can easily see us. The plant
layout design pictures out the kind of space needed for the production. As
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seen in the layout, it appeared that storage room and workshop place is
adjacent to each other, thus, lessening the time to transfer raw materials in
the workspace.
The manufacturing process that as to be undergone by the product is
not complicated since it only concentrates on proper evaluation of raw
materials and mixing.
The company will produce 48,000 units annually and will continue to
increase by 8% in the following years.
Disposal of wastes will not be too much burden for the company since
the city government of Pasay City has a campaign for collecting garbage. The
plastics and other recyclable garbage will be donated to the city government
as a cause for environmental awareness.
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