Sample Feasibilty study TECHNICAL ASPECT
This study discusses about the processes of production and activities of the company. It states also the machineries and equipment used in production and other aspects regarding bringing the raw materials into a finished product ready for trade. Plant layout, size and production schedule are all presented for the purpose of identifying the business operation. Also, product specifications, the product processes using flowchart, the list of machinery, tools, and equipment are enumerated with their corresponding costs, the raw materials and fund sources are also cited. A. Location The proposed business and processing site will be operated at Talomo River Calinan Davao City. We have seen that the place will be suitable for building a plant because it is away from residential areas. It is also accessible since it is along the road.
Figure 1.Talomo River Calinan, Davao City
B. Gantt Chart The chart below states the activities for making a business establishment before the normal operation will take place. Table 1 Gantt Chart Activities 1.Organizational Planning 2. Acquisition of Funds 3. Find Business Location 4. Sign the Contract of Rent 5. Apply Business Permit
Apr
May
Jun
July
Aug
Sep
6. Purchase Furniture, Equipment, and Products 8. Finding Supplier of Raw materials 9. Hiring of Employees 10. Grand Opening
C. Plant Layout, Size and Production Schedule
Office
Sugar Storage Room
Wash Room
Figure 2. Plant Layout
Finished Products
Cooling Area
Processing Room Honey Storage Room
Packing Area Lime and Vit. C Storage Room
Packing Materials
Figure 2. Sample Product
D.
Product Specification Natural Hair Remover is a brown sticky gel packed in a 400 ml canister. The
package includes ten (10) pieces wax strips. E. Product Preparations and Processes The process of production should be practiced very well and perfected to have a product with a high standard and quality that will be best suited for its consumers. All employees/workers must be trained proficiently and must be very knowledgeable on how the process of production goes as well as the proper use
of facilities and equipment. The business should also see to it that there are enough raw materials so as not to delay the production process. 1. Preparation of Raw Materials Measure four (4) parts of white sugar, one (1) part of water, one (1) part of lime juice, one (1) part of honey and one-eighth (1/8) part of vitamin C. Extract fresh juices from limes using the juicer. 2. Mixing and Heating Mix all the ingredients well. Heat the mixture and let it boil until it turns brown and sticky. Observe safety precautions. . F. List of Raw Materials, Machineries, Tools, and Equipment with Corresponding Costs
Raw Materials (Product 1)
Quantity
Price
Amount
P40
1,320.00
33 White Sugar
kg.(1/3 kg./unit )
Lime
Honey
40kg.
20
800
2 gal
500
1000
Total
P 3,120.00
PRODUCTION TOOLS Materials
Quantit y
Price per Piece
Amount
3
975
2,975
3
1,375
4,125
Juicer Electric Stove
Scissors
3
17
51.00
3
20
60.00
3
70.75
212.25
3
500
1,500
3
50
150
Cutter
Hand Gloves
Cooking Pot Wooden ladle
TOTAL AMOUNT
9073.25
OFFICE EQUIPMENT Materials
Qty
Price per Piece
Amount
2
20,990
41,980.00
1
13,990
13,990.00
Computer
Aircon
Total Amount
P 55,970.00 FURNITURES AND FIXTURES
Office Chair
3
700
2,100.00
5
1,225
6,125.00
3
450
1,350.00
2
1,000
2,000.00
1
3450
3,450.00
Filing Cabinet
Office Table Sofa
Printer
TOTAL
P 15,025.00 OFFICE SUPPLIES
Materials
Quantity Price per Piece
Amount
Ballpen
Pencil
Folders
5
4.50
22.50
10
5
50.00
10
5
50.00
1 box
23
23.00
2
25
50.00
10 boxes
5
50.00
Paper Clip
Stapler
Staple Wire
3
5
15.00
4 ream
160
640.00
2 box
20
40.00
20
7
140.00
2
17
34.00
4
13.25
53.00
Ruler
Bond Papers
Fastener
Envelope
Scissor
Scoth Tape
Tape Dispenser
2
51
102.00
2
5
10.00
1
62
62.00
5
5.50
27.50
2
23
46.00
Sharpener
Puncher
Eraser
Correction Fluid
5
75
375.00
1
1,050
1,050.00
1
1,000
1,000.00
2
20
40.00
Record Book
Emergency Lights
Fire Extingusher
Warning Labels
6
55
330.00
2
30
60.00
2
45
90.00
1
120
120.00
2
46.75
93.50
Trash Cans
Soft Broom
Dust Pan
Mop
Trash Bags
6
30
180.00
1
1250
1250.00
Rugs Telephone
Total G.
P 6003.50
Sources of Raw Materials The raw materials are mainly white sugar, honey and lime. White sugar can be purchased at Calinan Public Market. Honey and lime will be purchased from contracted individual vendors in Tamayong, Davao City. H. Waste Disposal Management The waste from the processing place will be identified as biodegradable.
These wastes will be disposed in a landfill located at the back of the plant site. Non-biodegradable wastes will be recycled or sold to junkshops.
