CHAPTER 1

INTRODUCTION

PROJECT SUMMARY

In the olden times, before the invention of modern technology, history proves

that there are evidences that earliest people took different measures to ensure water

purification good for human consumption. Through the years, good water management

was a part human culture. Yet, there are some cases that an outbreak of water-borne

disease continues to occur that severely affects the lives of many people.

Proper sanitation and safe water supply are one of the basic human rights. It

should be provided adequately to ensure and protect health and human productivity.

In this regard, the proponents of the study aim to establish a water refilling

station that is economical and safe for the consumption of its customers.

The objective of our study is to:

 To know the initial investment and estimated monthly income
 To identify the common encountered problems in terms of marketing, management,
technical, and financial aspects
 To know business operation initiatives that well enhance the operation performance
of the business
If this found as feasible, the researchers may consider venturing in this kind of

business. Hence, the findings can supplement them necessary knowledge needed to

start and operate a Purified Water Business and Self-serve Motor/Carwash.

PRODUCT/SERVICE DESCRIPTION

1
Core product

Water is a necessity in human lives since we need to drink water in order to

survive. It is important not only because human body is composed of 60 water but

also, it is essential for producing food, to clean our body, our clothing, to cook our food,

and in moving the waste stream. It keeps us healthy and the environment healthy.

However, because of water pollution caused by human activities putting substances in

the marine environment it destroy and made our water polluted and undrinkable.

Contaminated water is everywhere, consuming water in the pipe and in rivers is no

longer advisable. It is because of the life threatening effects of drinking uncleaned water.

Actual product

Our actual product is the Purified Drinking water which is to provide the

customers safe, pure and clean drinking water. We choose “purified” drinking water

among others because it is economical since it is cheaper and it also has a longer shelf

life which is perfect if you are going to stock it.

Augmented Product

Quality Service

The company aims to provide quality service for its customer. Hence, the

proponents decided to include the company’s hotline number in the product’s sticker.

This way, the company can respond to the customer complaints and suggestions, as

quick as possible, and to obtain feedbacks for the improvement of the company services.

2
The customers could also use the number to contact the company for orders and

reservation.

Loyalty Card & Promo’s

We also offer free delivery with a minimum purchase of 2 gallons and a Buy 10 +

1 promo for wholesalers. And we offer a loyalty card for the retailer, it contains 10 slots.

Wherein we would sign in the slot of the card depending on the number of purchase

and if it is filled out then they'll get a +1 for free.

Recyclability

The company offers not only safe and affordable product but also environmentally

sustainable. Polyethylene terephthalate, commonly known as PET,will be the material

used for the product’s packaging. PET is known to be recyclable and safe for reuse

provided that the bottle is not heated. Because the packaging will be recyclable, the user

will be able to reuse the bottle for other purposes around the household once the

contents will have been finished. The bottle may also be returned to the water refilling

station and be refilled.

INDUSTRY ASSESMENT

3
Prospects

Our prospect customers are everyone living in the area, we target specifically the

households of the barangay Basak and Pagsabungan that is near in the vicinity of the

company. Despite the fact that there are also water refilling stations nearby, the

company offers purified water that is economical, and safe for consumption, which will

indeed caters one of customer’s basic needs.

Threats

The main threat is the intense competition in the area. Anyone can build the

same business since it is quite easy to put up a water refilling business, so it can be

expected that new competitors will rise every now and then.

Scientists are developing a new technology that can desalinate sea water then

make it potable. If it will be introduced and huge amount will be supplied through our

common pipes, then, small purification business might experience loss.

Due to global warming and increasing population size, tap water/raw water

supply are getting scarce. So the proponents, needs to think of other source that can be

converted into purified water.

The company’s raw water came from the ground water, which can be easily

contaminated. To address this, the company will undergo monthly laboratory check-up

in Aqua Laboratories monthly which is the trusteed water laboratory in the Health

Center of Mandaue City and Department of Health.

Opportunities

4
 Water refilling station had become very rampant in the Philippines since the

demand for clean and safe water supply is increasing. It is due to the cases of

contamination in the tap/common water.

Nowadays, many people are getting health conscious and they want to ensure

the safety of their family by purchasing a water that is surely purified and has undergo a

several filtration.

RATIONALE

From outer space, the earth looks like a “blue” planet because most of its surface

is covered by water. But only 2.5% of that water is fresh, and most of that lies frozen and

inaccessible in the icecaps and Greenland, leaving less than 1% of fresh water accessible

in lakes, river channels and underground.

Hydrologists estimate that the average annual flow of all the world's fresh water

ranges from 35 000 Km3 to 50 000 Km3. Due to a mix of geographical, environmental

and financial factors, as well as to increased pollution from municipal and industrial

waste, the leaching of fertilizers and pesticides used in agriculture, only about one-third

of the world's potential fresh water can be used for human needs. As pollution

increases, the amount of usable water decreases. (Source: “Water for Life” WHO)

“3.4 million people, mostly children, die annually from water-related diseases.

Most of these illnesses and deaths can be prevented through simple, inexpensive

measures. For instance, trachoma remains the leading cause of preventable blindness,

accounting for 146 million acute cases around the world. But the disease is almost

5
unheard of in places where basic water supply, sanitation and hygiene prevail.” – World

Health Organization

These are the most common water borne diseases according to World Health

Organization (WHO) that you could get from consuming unclean, unsafe water:

Amoebiasis is caused by a parasite called Entamoeba histolytica which can be found

in food and water with fecal contamination and causes weight loss, watery and

sometimes bloody stool and abdominal pain, especially in case of amoebic liver

abscesses.

Diarrhea is one of the lead causes of malnutrition and the second leading cause of

death in children aged five and below. Most patients die from severe dehydration.

Cholera is caused by the bacterium Vibrio cholerae, infecting the digestive system

and causing vomiting, watery stools and severe dehydration, among other symptoms.

Typhoid fever is characterized by symptoms such as consistently high fever,

weakness, diarrhea, and anorexia. It is caused by a bacterium called Salmonella typhi

that lives in contaminated food and water. (Source: philstar.com)

According to the Department of Health (DOH) of the Philippines, about a million

Filipino’s get sick because by water-borne diseases yearly. These problems are accredited

to the poor water system and improper sanitation in the country.

Through this occurrence of problem, the solution has appeared in the thousands

of water refilling station that is now very rampant in the country; it is because of the

rising demand of clean, pure and safe drinking water.

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 Purified water is water that has been mechanically filtered or processed to

remove impurities and make it suitable for human consumption. –Wikipedia

It can be the main ingredient in any health regiment, and the consumption of quality

purified water is as important to one’s overall health and wellbeing as a healthy diet.

The benefits of drinking purified water are numerous, and below, we have listed

the benefits that make purified water better than any other alternatives out there:

Drinking Purified Water Helps Remove Toxins- Kidneys need water to work. Water

allows our kidneys to filter toxins, helps our cells remove waste and take in nutrients,

and transports nutrients to every organ in the body. Water also helps our hearts with

pumping fresh, oxygenated blood to our organs.

Purified Water Has Essential Minerals- Purification reintegrates essential

minerals that our body needs. Minerals like calcium, magnesium and potassium.

Purified Water Is Good for Your Joints- Our joints need moisture in order to

remain strong and flexible, in order to keep your movements smooth and pain free.

Drinking purified water can go a long way in helping to keep our joints strong.

(Source: “The health benefits of drinking purified drinking water..” google.com)

It help with Body temperature regulation- Water has a large heat capacity which

helps limit changes in body temperature in a warm or a cold environment. Water

enables the body to release heat when ambient temperature is higher than body

temperature. We begin to sweat, and the evaporation of water from the skin surface

cools the body very efficiently.

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 Cell life -Water is essential for cells to function properly: it enters into the

composition of the cells.

It has Chemical and metabolic reactions- By enabling hydrolysis reactions, water

participates in the biochemical breakdown of what we eat (proteins, lipids and

carbohydrates). This is one of many reactions in which water is involved.

Plus, it also smells good and tastes delicious.

Keeping this important level of hydration from drinking eight to ten glasses every

day (approximately 1.5 liters) without waiting until you’re thirsty, is important as part of

a healthy lifestyle and it will have a positive impact on every single system in the body.

You’ll find your energy levels are increased, your metabolism picks up, and headache

lessen, and even an improvement in the health of our skin!

People nowadays don’t have much access to proper sanitation so they preferred

to consume safe purified drinking water to prevent diseases related to contaminated

water. Purified Water Businesses dominate the percentage of all water consumers

proven by the growth of this kind of business in terms of population and its continued

existence around the cities and even in rural areas. Here in Mandaue City, the number of

registered Purified Water Business is about 616 as of 2016.

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 CHAPTER 2

MARKETING FEASIBILITY

I. GENERAL ASSESSMENT OF THE TARGET MARKET

"Prevention is better than cure" This statement implies that we should prevent

disease other than curing it. One way of doing so, is by consuming clean and safe

drinking water. Water contributes much to health because it is essential to our life. It

contributes to us directly, to our health, by the food and nutrition which supplies our

bodies daily needs and it affect to us indirectly through our proper sanitation and

hygiene.

Unfortunately, not all people have enough access of clean and healthy water

offered by the water refilling store due to poverty; forcing them to extract water from

alternative and unsafe sources, exposing them to disease.

To address this, the proponents decided to establish a water refilling station that is

economical and safe for human consumption. So that everyone in the society, whatever

status; rich or poor can avail our product and services.

Water is one of the Earth's most precious and threatened resources

Health is one of each person's most precious resources

We need to protect and enhance them both

Water for Health

-WHO

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 II. TARGET MARKET SEGMENTATION

Market Segmentationof finding and ca

Market segmentation is the process of dividing a market of potential customers

into group, or segments, based on different characteristics. it is very important to do

market segmentation, in order for us to know the what particular group of consumers

that the company is aimed to attract.

BASAK
PAGSABUNGAN

Figure 1. Shows the geographic location of the JAMP water refilling station which was

represented by the star and the oval as the area of Barangay Basak and Pagsabungan.

Geographic:

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 People mostly patronize water refilling station that is near to them since it is

accessible. Therefore our geographic customers are the residents living in the barangay

Basak Mandaue City that is where we will establish our company. It has 13 sitios, and we

also included the neighboring barangay which is Pagsabungan Mandaue City, nearby in

the location of the company. We will target specifically the number of 1,818 households

living in the area of barangay Basak and a total of 3,712 households living in barangay

Pagsabungan. (Source: CENCUS data 2016)

Demographic:

Target all age group. Since everyone consumes and drinks water.

Lower and middle class, we wanted to establish a water refilling station that will

provide everyone, not only a safe and clean drinking water, but we also wanted that our

prices are economical so that everyone can avail our product and services.

Market Targeting

Target market is the market a company wants to sell its products and services to,

and it includes a targeted set of customers for whom it directs its marketing efforts.

Identifying the target market is an essential step in the development of a marketing plan.

The company particularly targets the consumer market. These are Individuals

and households who buy goods for their own use or benefit. We already identified our

geography and demographic target in the market segmentation.

Market Positioning

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 Due to the advanced technology in today’s time, people learned that the present

conditions of municipal/provincial tap water are no longer safe for consumption. It is

because these sources may contain impurities that are harmful to the body. People are

switching in water refilling station as sources of their drinking water, because they want

to ensure the cleanliness of their water for their home and family. Other than it keeps us

away from harmful effects of water contamination, drinking purified water also has

numerous benefits for our body. Once you experience the benefits of drinking better

quality water, you'll fall in love with the clean and refreshing taste of it, making you hard

to get you back to tap.

While conforming to the national standards, J.A.M.P water refilling station offers

Clean and Safe water that is free from harmful diseases that is caused by consuming

unsafe water at bay. We will provide cheaper sources of clean and potable water than

traditional sources such as bottled water bought at super market. We wanted it to be

economical, for the company aims that everyone in the area/location can avail our

products and services. The company also has effective waste water utilization for water

conservation through our second service line which is self-serve motor/carwash, the

company cares not only for its customer but also to its environment.

Positioning Statement

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 “To the families, the J.A.M.P water refilling station, provides you pure, safe and

clean drinking water at the right price. You’ll surely love the refreshing taste of clean and

safe purified drinking water.”

Selection of the Respondents

Table. 1 show the corresponding number of respondents of the survey

questionnaire were the random families living in barangay Basak and

Pagsabungan.

Table 1. Number of Households

BARANGAY No. of Households

BASAK 1,818
PAGSABUNGAN 3,712
Total no. of household 5,530
Noof Households
Population Percentage= ∗100
Grand Total

3,712
Population Percentage= ∗100 =67
5,530

The Basak Mandaue’s household population is 1,818 while the Pagsabungan

Mandaue’s household population is 3,712 as of the year 2016. The sample size is

composed of Basakanon’s 25.61%, was composed of Pagsabunganon’s 74.39%

A sample size of 4,990 respondents was obtained using the Sluvin’s Formula as shown

below with a confidence level of 95% which gives a +5% or 0.05 margin error.

Wherein:

n is the sample size

13
 N is the total population

e is the margin error.

N
n=
(1+ Ne 2)

5,530
n= 2
=373 respondents
(1+ 5,530∗0.05 )

Purpose of Survey Questionnaire

A questionnaire is made for the purpose of understanding the experiences,

beliefs, perceptions and feelings of a given group of people. Questionnaires create a

more accurate picture regarding the way people view certain things in the community by

collection of specific data.

With the sample size as the representative market, the survey questionnaire

would help the proponents identify the company’s potential customers, its preferences

and the frequency weekly purchase of the product. It would also help identify the

demand of product and its potential competitors. By analyzing results, the can

immediately address topics of importance, identify improvement opportunities to know

how to satisfy potential customers. These are valuable feedback as our baseline to

measure and establish a benchmark to guide the company and survive in the market.

Survey Results, Summary and Conclusion

The proponent’s surveyed 370 respondents in Barangay Basak Mandaue City.

From the survey results gathered, out of 370 respondents 77.47% belong in the middle

class with a lower middle monthly income of Php 5000 below. Mostly, there are 72.45%

14
of members each of the family, this entails that in this members of the family they

consumed 3 bottles ( 5 gal) in a week. They usually bought in the water refilling station

for their drinking water in the Century Spring Mineral Water at Php 25-35 price range. In

the present, 247.67% purchased any of Purified drinking water, 294.79% would buy

Purified drinking water and they willing to spend at Php 20-30 per bottles ( 5 gal.).

Quality Service and Cost is the most important factor to them in choosing patronizing a

water refilling station. Word-of-mouth also was also found to be the most influential way

of advertising the product. For our quality service, 128.55% want the company to

respond to take their order for delivery and they want us to reach to them by

Telephone/Mobile.

III. DEMAND ANALYSIS

Demand Assumptions

1. The number of households in the selected barangay of Mandaue which is the

Basak and Pagsabungan will be used to compute for the current and projected

demand of the product. Table 1 shows the corresponding number of households

for the 2 Barangay’s.

2. Only the barangay Basak and Pagsabungan is the target market alone, outside

demand is not considered in the computation.

3. The frequency in buying the product is determined by asking the respondents of

In their household, how many bottles of (5gallons) of water they consume in a

week.

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 4. The demand of the product is projected using the percentage of respondent’s

weekly purchase of water.

Frequency
Percentage=
Total Number of Respondents

total number of Gallons bought total actual annual demand

=
no . of respondetns household p opulation

Demand Components

Actual Demand for Drinking water

1. Those respondents whose source of drinking water come from water refilling

station

2. The number of Bottles (5gallon) that was purchase weekly was used to

calculate of the actual demand of drinking water.

Potential Demand for Purified Drinking water

1. Those respondents who are willing to buy purified drinking water

2. The number of Bottles (5gallon) that they were to purchase weekly was used

to calculate of the potential demand of purified drinking water.

Actual Demand for Purified Drinking water

1. Those respondents who buys Purified Drinking Water in the present

2. The number of Bottles (5gallon) that was purchase weekly, was used to calculate

of the actual demand of Purified drinking water.

Demand Computations

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 The total actual demand for Drinking water was computed with the use of

frequency and total number of households. The survey provided the estimated number

of Gallons purchased weekly which was used to get the number of Gallons purchased in

a year. The total number of households is multiplied to the yearly to the total gallons

bought yearly to get the actual annual demand. (See appendix F for further

computations)

ACTUAL DEMAND FOR DRINKING WATER= 17,395,298 Liters

POTENTIAL DEMAND FOR PURIFIED DRIKING WATER= 16,967,396 Liters

ACTUAL DEMAND FOR PURIFIED DRINKING WATER = 16,807,940 Liters

The total demand for water was divided by the number of households to get the

demand factor. The projected population was calculated by the historical data of the

Barangay Basak and Pagsabungan from 2012-2016. The calculated data was plotted in

graph and it shows straight trend line. With this, the proponents decided to use both

Arithmetic Straight Line and Statistical Straight Line method was used for the projection

of population. The result shows that the lowest standard deviation was the arithmetic

straight line which is preferable to be used. The results were used to calculate the

projected actual and potential demand of purified water and so with the projected

actual demand for drinking water. The figures below will show the calculated projected

17
 Projected Actual Demand for Drinking Water (Liters)
27,779,180
25,702,820
23,626,460
21,550,100
19,473,740

2017 2018 2019 2020 2021

population for the next five years.

Figure 2.
Projected Actual Demand for Drinking Water of the year from the year 2017 to 2021

Projected Potential Demand for Purified Drinking Water (Liters)

25,065,560 27,090,440
21,015,800 23,040,680
18,990,920

2017 2018 2019 2020 2021

Figure 3.
Projected Potential Demand for Purified Drinking Water from the year 2017-2022

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Projected Actual Demand for Purified Drinking Water (Liters)

24,828,630 26,834,370
20,817,150 22,822,890
18,811,410

2017 2018 2019 2020 2021

Figure 4.
Projected Actual Demand for Purified Drinking Water from the year 2017-2021

Demand Analysis

From the figures above, there is an opportunity for a new Purified Drinking Water

business due to its potential demand. Base on the information gathered, the household

population in both barangays are increasing which is an advantage for the company to

have larger number of target market.

With reference of the survey results, it shows that the respondent’s most

important factor that greatly influences their choice of patronizing a water refilling

station is Location. It ranked as the highest from the cost and quality service. Therefore,

it is ideal to have a purified drinking station that is accessible to the customer next is the

cost which they desire affordability of the product and lastly is quality service. The

amount of time they wanted that the product to be delivered is 20 mins.

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 IV. SUPPLY ANALYSIS

Supply Assumptions

1. Barangay Basak and Pagsabungan household population was based on

the 2016 Census provided by each barangays.

2. The projected supply that was based from the survey represents the

same supply from the company’s direct competitor.

Supply Components

The components in calculating the supply are the following:

1. Markets frequency of the company’s direct competitor’s supply is based on the

responses on the survey questionnaire

2. The Competitor’s market shares based on the answer of the questionnaire.

Supply Computation

The total supply of the direct competitor’s products was calculated based on the
responses of the survey questionnaire. To further compute the supply of each
competitors, the total number of respondents who are willing to purchase purified
water. The resulting percentage, multiplied to the total number of population in the
barangays, is the total number of people that are willing to purchase purified water.

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 160,000,000

140,000,000 135,416,351

120,000,000 113,609,164
98,099,980
100,000,000 91,749,723
84,291,274
80,000,000

60,000,000

40,000,000

20,000,000

0
2017 2018 2019 2020 2021
Supply (Liters)

The supply of each competitor was then summed up to get the total supply in
one year using data of the forecasted population from the arithmetic straight line to get
the supply of the five previous years. The same computation was then used to compute
the projected supply of the years 2017 to 2021.

Figure 5.
Bar Graph of the Projected Supply for Purified Drinking Water from the year 2017-2022

V. COMPETITORS’ PROFILE

Based on the target location of the business, the proponents has considered water

refilling stations that are near in the area. Direct Competitors are who sells Purified

Drinking Water. Indirect Competitors are those establishments who are water

refilling stations but don’t sell purified drinking water.

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Indirect Competitors

LIST OF COMPETTITORS

COMPANY NAME LOCATION PRODUCT Price

Century Spring Mineral Basak Mandaue City Mineral water Php 25.00
Table 2 Indirect Competitors

Direct Competitors

LIST OF COMPETTITORS

COMPANY NAME LOCATION PRICE

Heaven Shower Pagsabungan, Mandaue City Php 25.00
Clay hill Pagsabungan, Mandaue City Php 24.50
M3 Purified Drinking Water Pagsabungan, Mandaue City Php 26.00
Aqua de Fatima Basak, Mandaue City Php 25.00
Table 3 Indirect Competitors

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 Competitor's Market Share

11.62%
25.68%
9.73% Heaven Shower Purified Drinking
Water
Clay hill Purified Drinking Water
M3 Purified Drinking Water
Aqua de fatima Purified Drinking
12.16% Water
Century Spring Mineral Water
J and H
18.11% Others

15.14%
7.57%

Competitors’ Market Share

Figure 6

The figure.6 shows the different water refilling stations centers in the barangay Basak and

Pagsabungan with corresponding market share.

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GAP ANALYSIS - DEMAND VS. SUPPLY

Supply-Demand Gap (Liters)

140,000,000
120,000,000
100,000,000
80,000,000
Liters

60,000,000
40,000,000
20,000,000
0
2017 Supply
2018
2019 Demand
2020
2021

Figure 7 Demand-Supply Gap

The figure 7 shows the different water refilling stations centers in the barangay Basak and

Pagsabungan with corresponding market share.

VI. MARKET SHARE ANALYSIS

In order to get the Market Share of JAMP Purified Drinking water in the market,

the actual demand for purified drinking water demanded by the population is to be

considered. And to get the percentage to steal from the general market, the information

of sales should be used from one of the competitors.

The average daily sale of the J & H Purified Drinking water product produces 350

gallons per day. The owner of the store is Mr. Ian and Mrs. Haide Tenchavez. They both

gave the data to us by the word of mouth.

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 To get the sales in one year, it would be referred to as the Captured demand, the

average daily sales of purified drinking water in J & H.

Working days per week is only 6 days

6 x 53 weeks=318 days ¿ 350 gall 0 ns x 318=111,300 Gallons per year

Captured Demand
Percentage ¿ steal market share= x 100
Actual Demand for Purified Water

111,300
Percentage ¿ st eal market share= x 100
601,187

New Market Share

20.79% 18.81%

5.94% 9.90%

7.92%
14.85%

9.90%
11.88%

Percentage ¿ steal market share=18.51 19

25
 Figure 8

Market Share of JAMP

VII. MARKETING STRATEGY

Distribution System

Water, what a fundamental need of life! It is something we all cannot do

without. The need for clean and drinkable water will continue to exist as long as human

exist. Water is one of the commodities in our world that doesn’t have any substitute.

These points to the fact that clean and drinkable water is as important as the air we

breathe in and it will continue to be in demand globally.

The JAMP water refilling stations main customers are the households and it is

ideal to use direct distribution channel, where the company will sell their products

directly to its customers.

Human Resources in the Distribution System

The persons in the positions mentioned below, will have to carry out the

necessary actions in order to promote and sell the product.

Manager – has knowledge as to how much or what quantity of the product will

be delivered and releases finished goods from the inventory, endorses the new product

26
to different retailers, contacts advertising agencies for the promotion of the product,

maintains good relationship with the customer or retailers.

Front liner- the person in charge in accepting customer orders and welcoming

customers at the store.

Driver – transports the product to customers to their households, collects the

payment for the delivery.

Helper- help the driver load the gallons of purified water to the truck ready for

delivery. Help deliver the product to the customer.

Promotional Aspects

Brand Positioning

Company Name

The company’s name is J.A.M.P water refilling and self-serve car/motor wash. It

was derived by the four initials of the names of people who founded the company,

namely Jezabel Candia, Alyssa Tenchavez, Marycris Bustillo, Paul James Obenza.

JAMP is also a past participle of the word “Jump” which means to move from one

place into another. Well, this is actually, the concept of the company from ground water

it JAMP and processed it formed Purified Drinking Water. And from the waste water, it

JAMP into self-serve car/motor wash.

Company Logo

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 Figure 9.

Company Logo

A logo is a visual cornerstone of the company's brand. The company's identity is

visually expressed through its logo, which, along its company's name. It is important

because one of the main things that makes the business memorable.

The company’s Logo main color is Blue which represents its product in which the

water and the shade of white appears at the center which defines purity. Also, with the

font of the letters that is being used is written in a cursive manner, as it represents the

water that has its curves that symbolizes the waves of flowing water.

Packaging

The product will be placed in 5-gallon (22.7 liters) containers and these will be

delivered from the water refilling station directly to the customer’s home.

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 Figure 10. Product Sticker

Product Sticker Label:

The packaging label will contain the following:

1. Company name

2. Company’s address and contacts

3. Water Quality and Aqua Lab Registered

4. Slogan

This is to give the customer guarantee that the product is safe and legal. They can

use the contact number of the company for product delivery and reservation, and they

can also it to contact the company for suggestions to make our service more reliable.

Product Life Cycle

STAGES PRODUCT PRICE PROMOTION PLACE

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INTRODCTORY Purified Drinking Php 30 *Poster Production and

water and Self- Advertisements Distribution is done at

serve carwash *Leaflets Basak Mandaue City

advertisements

*Social media
GROWTH Purified Drinking Php 30 *Social media Production and

water and Self- *Sponsorships Distribution is done at

serve carwash Basak Mandaue City

MATURITY Purified Drinking Php 30-35 *Poster Expansion of the

water and Self- Advertisements establishment at Basak

serve carwash *Leaflets Mandaue City

Company plans advertisements

ahead about *Social media

producing new

product line.

500 ml Bottled

Water
DECLINE Purified Drinking Php 35-40 *Focused on the Production and

water and Self- new product line Distribution is done at

serve carwash *Poster Basak Mandaue City

Advertisements

*Lyflets

advertisements

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 *Social media

Table 4

31
Captured Demand

Table 5 Shows the Captured Demand of Purified Drinking Water

Advertising Strategy

The company doesn’t have the luxury of a large advertising budget in order to

make the most of the limited advertising money, one must need to establish clear

advertising objectives and make use of low-cost but effective advertising strategies. A

number of possible objectives and strategies may be suitable for the business.

Advertising Media

People have an easy access in social networking and internet in this era and it’s a

lot easier find new and interesting products online. As a means of advertising, here’s the

company’s Facebook and Instagram account. This way, the customer can reach the

company easily.
Figure 11. shows the Facebook Page of Jamp Purified Drinking Water

Figure 12. shows the Instagram Page of Jamp Purified Drinking Water
  Build reputation through the use of social media: begin a dialogue on the

benefits of water Increase brand awareness and brand recognition (e.g.

signage or wraps on vehicles delivering water)

 Increase public awareness of environmental benefits of water refilling (of

large dispensers) over individual water bottles

 Increase public awareness of health benefits of drinking water

 Sustain relationships with clients by maintaining the quality of products

and fast response or services

Pricing Programs

Pricing Objectives

Base on the result of survey, the respondents are willing to spend Php 20-30 on

purchasing the product. This will be used as bases for the price. It will be studied further

because Cost ranked second in the most important factor by the respondents.

Pricing Policy

The pricing policy that the company would adapt is the odd/even pricing.

Wherein the business uses this pricing technique to make their customer think they are

getting a bargain.
 As the target market are the household, they would most likely to buy product

that they would think they are saving from it.

Pricing Strategy

This is a well-structured plan to price a product to achieve a long term marketing

objective. If the customer buys a large quantity of the product, they would be given a

free one. Plus, the loyalty card, that’s when filled up, they will have a free one.

Pricing Determination

This is the interaction pf the free market forces of demand and supply to

establish the general level of price for a good and service. In determining the price we

consider its internal, external and other objectives. And also, we adjusted it to the

customer’s preference.

VIII. EVALUATION

The respondents selected for the study are residents of barangay’s Basak and

Pagsabungan. The consumer market is the primary target market.

Surveying 370 respondents helped the proponents identify its potential and actual

demand, its supply analysis and the competitor’s market share.

Continuing the study in the technical aspect of the business may help determine the

company’s success.
 CHAPTER 3

TECHNICAL FEASIBILITY

I. PRODUCT DESCRIPTION

Features of the Product

Water refilling stations can be a good source of safe drinking water in the

Philippines. Purified water can meet the aesthetic standards easily detectable by the

people in terms of taste, odor and color. The efficient water purification processes can

make the quality water superior to the traditional water systems. Nowadays, because
of convenience on the part of the consumers, purified water in 5-gallon (22.7 liters)

containers are delivered by the station directly to the customers home.

Features of a Purified Water, it has numerous benefits discussed from rationale,

it is also clean, therefore it is safe to drink and has a refreshing taste.

Physical Characteristics

Our product, which is the Purified Drinking water has a main material which is

water. It adopts its a physical property that is Odorless and Colorless.

Uses of the Product

The use of Purified Drinking water is for the customers to drink.

Pictorial View of the Product

 Figure 13

The Figure 13 shows the Pictorial View of the Product which is the Water Purified

Drinking Water and the Self-serve Motor/Carwash.

Exploded Drawing

SEAL

GALLON

STICKER NON-SPILL
CAP
Figure 15 Shows the Exploded Drawing of Purified Drinking Water
 II. Raw Materials

Bill of Material

Product Structure Tree

WATER REFILLING STATION

Purified
Drinking Water

Level 0
Processed
Gallon
water
Level 1

Ground
Sticker Cap Seal
water
Level 2

Figure 17. Product Structure Tree of Water Refilling Station

PRODUCT STRUCTURE (MATRIX)

WATER REFILLING STATION

LEVEL MAKE OR BUY USAGE

0 1 2
PURIFIED DRINKING WATER MAKE 1

GALLON BUY 1
PROCESSED WATER MAKE 1
STICKER BUY 1
CAP BUY 1
SEAL BUY 1
GROUND WATER MAKE 1
Table 5

DIRECT MATERIAL INDIRECT MATERIAL

BOTTLE DISWASHING LIQUID
CAP SPONGE
SEAL WATER
STICKER INDUSTRIAL SALT
 Table 9

PERCENTAGE PERCENTAGE
USAGE RATE
USAGE RATE USED FOR MATERIAL USED FOR WATER
MATERIAL (L)
(PCS) WATER REFILLING (%)
REFILLING (%)
WATER 22.7 99.855
SPONGE 1 25
DISWASHING
0.03 0.132
CAP 1 25 LIQUID
INDUSTRIAL
0.003 0.013
SEAL 1 25 SALT
Total 22.733 100
STICKER 1 25 Table
Total 4 100
Table

Table shows the usage rate per gallon and the Percentage used for water refilling station

Description of Raw Materials

WATER REFILLING
RAW MATERIALS PICTURE DESCRIPTION
 Groundwater is the water present
GROUND WATER beneath Earth's surface in soil pore
spaces and in the fractures of rock
formations It is very pure
microbiologically. It is often cheaper,
more convenient and less vulnerable
to pollution than surface water.
Therefore, it is very suitable as a raw
material for the business.
Table 7

WATER REFILLING
ALTERNATIVE
RAW MATERIAL PICTURE DESCRIPTION
This river is located at Carmen,Danao Cebu

LUYANG RIVER

Table 10
Ground water is always available if ever there will be a contamination, the company would get its source in the Carmen, Danao.

Suppliers of Materials

RAW MATERIAL SUPPLIER ALTERNATIVE SUPPLIERS

GROUND WATER NATURE CARMEN CEBU, RIVER
 Table 11

WATER REFILLING STATION

MATERIALS SUPPLIER ALTERNATIVE SUPPLIER
BOTTLE Liquid Packaging Corporation, Aqua Star
CAP
Labogon Mandaue City Ibabao Estancia, Mandaue City
SEAL
STICKER (032)420-4399 (+6332) 236-7495
INDUSTRIAL SALT

Table 12
 III. MANUFACTURING PROCESSES

Process Detailed Description

Processed used by the industries

The main processes in a water refilling station are dictated by raw water quality. The typical steps are filtration (several stages),

softening, and disinfection. The machines that could be installed for such processes are the following:

o Multi-media sediment filter – removes sediments such as rust, sand and particles that are invisible to the naked eye; employs
a total of 5 filters.
o Ion exchanger – replaces hard minerals with soft minerals.
o Activated carbon filter – removes all organic chemicals, herbicide, pesticide, offensive odor and bad taste.
o Reverse osmosis membrane – the heart of the system and the most expensive unit; removes inorganic minerals, bacteria and
viruses while retaining its oxygen content. Since the filter size is very small at less than 0.05 micrometer, the product water could
have a total dissolved solids (TDS) of less than 10 ppm. The filtration process rejects about 50 percent of raw water volume.
o Ultraviolet lamp – ensures that the water is free from disease-causing micro-organisms.
The efficiency of water purification system in removing impurities is high. The 10 water quality parameters measured
Flow Diagram WATER PURIFICATION
Figure 19 Shows the Flow Diagram of Water Purification
Assembly process

Wash the Gallons Attach the cap

11 Refill the gallons
SA2 Attach the Seal
A2

Figure 20 Shows the Assembly

21 Purified Drinking Water
Process of Purified Drinking

water
A1
 FLOW PROCESS CHART (SWIM LANE)
PREPARATION PHASE EXECUTION PHASE FINAL PHASE
OPERATION MANAGER/
FRONTLINER
Get the Order

SERVICE CREW

Receiving the gallons Wash the gallons Attach the seal Heat the seal

SERVICE CREW

Wipe the gallon with

Refill the gallons absorb cloth
Attach the cap
DRIVER/HELPER

Delivery the gallons

to the customers

Table 13 shows the Process Flow Chart (Swimlane)

Quality Control

Institutions and Policies

The agencies directly involved in the establishment operation of water refilling stations

are as follows:

o The Department of Health (DOH). DOH is the main agency responsible for

protecting the health of the people. The Sanitation Code of the Philippines

mandates DOH in protecting drinking water quality. Consequently, DOH issues

implementing rules and regulations prescribing sanitary standards for water supply

systems, including water refilling stations.

o The Local Government Units (LGUs) are mandated by Presidential Decree (PD

856) to issue sanitary permit, drinking water site clearance and closure order (if

necessary) and to conduct sanitary inspection of WRS.

o The Water Quality Association of the Philippines Inc. (WQAP) is an organization

of private firms who are engaged in the manufacture, sale, and distribution of water

refilling station equipment and supplies, as well as water treatment and purification

equipment and technology for household, institutional, commercial and industrial

applications. About 85 percent of its 250 members operates water refilling stations.

o Association of Water Refilling Entrepreneurs (AWARE) concentrates on resolving

business management issues of its members.

o Presidential Decree No. 856 (PD 856) or the Sanitation Code of the Philippines is

the main law requiring all establishments to comply with existing sanitary standards
 to protect public health. Guidelines for operating a water refilling station are indicated in

the Supplemental Implementing Rules and Regulations on Water Supply of PD 856 issued in

1999.

Inspection points

To ensure their continuous business operation, water refilling stations need to

secure a sanitary permit by passing stringent sanitary inspections which are periodically

conducted by the city or municipal health officer, using a 20-item checklist equivalent to

five points each, for a total of 100 points.

Water quality monitoring

During the operation, the company does Quality Check after the entire process.

To determine the accurate pH Level of the Water, by getting a sample of the processed

water through the TDS Meter (total dissolved meter). The required level of the City

Health of Mandaue is Level 10.

Source water and product water are subject to regular monitoring by the health

office. They usually have random or surprise visit at the site.

The national standard for drinking water contains parameters that must be

complied with only DOH accredited laboratories which is the Aqua Lab are the only ones

allowed to conduct water testing and analysis of Bacteriological Quality monthly.

Tools/Equipment Monitoring Checklist
Machines/ Frequency of In Charge For Control Points Corrective Actions
Equipment Inspection Inspection
Water Tank Daily Operations The tank must not Check if the
Manager have any leakage damage can be
repair before
getting
Technician/plumb
er to check
Raw Pump Daily Operations The hoses needs to be Check if the
Manager perfectly connected to damage can be
the tank to avoid repair before
leakage getting
Technician/plumb
er to check
Water Daily Operations The hoses should be Check if the
Softener Manager perfectly connected to damage can be
make sure that there repair before
will be no leakage getting
Technician/plumb
All electronic controls er/supplier to
must be set properly check
Multimedia Daily Operations The tubes must be Check if the
set Manager connected to the damage can be
water softener repair before
properly to prevent getting
leakage Technician/plumb
er/supplier to
check
Sediment Daily Operations The tubes must be Check if the
Filter Manager connected to the damage can be
water softener repair before
properly to prevent getting
leakage Technician/plumb
er/supplier to
check
Activated Daily Operations The tubes must be Check if the
Carbon Filter Manager connected to the damage can be
sediment filter repair before
properly to prevent getting
leakage Technician/plumb
er/supplier to
check
Filling Faucet Daily Technician There should be no Check if the
leakage damage can be
repair before
getting
Technician/plumb
er/supplier to
check
Heat Gun Daily Operations All wirings should not Consult the
Manager have any damage supplier

Fire Daily Operations Must be placed Consult the

Extinguisher Manager properly in case of supplier
emergency it can be
seen easily

Table 14 Shows the Tools/ Equipment Checklist

IV. PLANT SIZE AND PRODUCTION SCHEDULE

Production Schedule

To be able to identify the number of operating days in one year, legal holidays,

special-non-working holidays and Sundays were taken into consideration. There will be

six working days per week and it is assumed that unexpected events such as natural

calamities or strikes that may cause work to be stopped will not happen thus no

allowances are allotted for those days.

Number of Days 365

Number of Sunday 52
Number of Regular Holidays 10
Number of Special Non-working Holidays 3
Number of Operating Days 300
Table 15 Breakdown of the Number of Days
Table 15 shows the breakdown of the number of Sundays, regular holidays and

nonworking holidays per year. There will be a total a total of 300 operating days for the

company.

The company will be operating one shift (eight hours) per day. Furthermore,

the regular holidays are considered as follows:

 January 1 - New Year's Day

 April 9 - Araw ng Kagitingan

 April 17 - Holy Thursday

 April 18 - Good Friday

 May 1 - Labor Day

 June 12 - Independence Day

 Last Monday of August - National Heroes Day

 November 1 - All Saints' Day

 November 30 - Bonifacio Day

 December 25 - Christmas Day

 December 30 - Rizal Day

 The special non-working holidays considered are as follows:

 December 24 - Additional Special Non-Working Day

 December 31 - Last Day of the Year

Production Capacity Plan

Design Capacity

Our machine has the design capacity is 50,000 litre of Purified drinking water .This

capacity is Maximum obtainable output. But;

Production (capacity) planning

In our production capacity planning, we used to calculate capacity has been explained in

the following. To calculate Daily production capacity (in pieces) one needs following

information.

1. Factory capacity in hours

2. Product SAM

3. Line efficiency (Average)

1. Calculation of Production capacity (in hours): Check how many machines factory

has and how many hours factory runs in a day.

Production Capacity ( ¿ hours )=Total number of machines x Shift hours per day

¿ 1 machine x 8 hours

¿ 8 hours

2. Calculation of Product JAM (JAM): Make a list of product category that you

manufacture and get standard minutes (SAM) of all products you make from

work study engineers. We you don’t have product SAM then calculate the SAM.

Or you can use average SAM of the products. We produce water refilling and

SAM is 4.34 minutes.

3. Production Average Efficiency: Our average line efficiency is 90%.

 Calculation of production capacity: Once you have above information use

following formula to calculate production capacity.

Capacity ∈hours x 60
Production capacity=( )∗Averageline efficiency
product SAM

8 hoursx 60
¿ ( 4.34 minutes )
∗90

¿ 99.53

Effective Capacity

Every day, we have to check the machine for maintenance purpose, 10% of machine

capacity goes through planned maintenance that can affect the design capacity.

Effective Capacity=50,00 litre x 10 ¿ 45,000 litres

A ctual Output =( Effective Capacity ) ( Efficiency )

¿ ( 45,000 ) ( 95 )

¿ 42,750 litres

Actual Output
Efficiency= ∗100
Effective Capacity

42,750 litres
Efficiency= ∗100
45,000 litres

¿ 95

ActualOutput
Utilization= ∗100
Design Capacity

42,750litres
Utilization= ∗100
50,000 litres

¿ 85.5 Factors Affecting Plant ¿ ¿

Several factors have to be taken into consideration in the process of determining how

Large the plant will be:

1. Production capacity – the plant has to be designed to be able to house all the tools,

Equipment, materials and other items necessary to produce the target output of

the company.

2. Number and dimensions each process – the number and dimensions of the space

needed per process will determine how much space should be allocated for these.

Enough space has to be allocated to accommodate changes and adjustments

needed for the increasing production quantities.

3. Manpower Requirement – the manpower requirement determines how many worker

needed in order to facilitate smooth flow of work.

The figure 22 below shows the company's production capacity output

per day, per week and per month. It also shows the gap between the demand

and the company's production capacity output per month.

 Figure 22

The capacity was computed by the number of jars the workers could produce

within the given daily working hours.

To avoid over production for the years which needed a much lesser production

output, the company will have to adjust on the amount of raw materials to be purchased

per year. To supply for the years with doubled the production requirement (with respect

to the capacity), the company would have double batches produced per day.

The table below shows the daily, weekly and monthly production output per year

fitted to the company's captured target demand.

Figure 23
V. MACHINE REQUIREMENT AND SPECS

Primary Machines and Equipment

Figure 23
Auxiliary Tools and Equipment
WATER REFILLING STATION
Tool Picture Description Main Supplier Alternative Quantity Life Span Price Cost
Equipment Supplier
FAUCET -ABS Plastic Body CITI Hardware Belmont Hardware 2 5-10 years Php 999.75
-Polished and Chromed Bulacao, Pardo P. Burgos Street,
-Brass Ceramic cartridge Cebu City Cebu City

TDS METER -32g CITI Hardware Belmont Hardware 1 5-10 years Php 401.95
-140x23x15mm Bulacao, Pardo P. Burgos Street,
-Metal analyser TDS Cebu City Cebu City
meter

HEAT GUN -1600W CITI Hardware Belmont Hardware 1 10-15 years Php 2,599
-220V Bulacao, Pardo Legaspi Street,
-0.95kg Cebu City Cebu City
-stainless steel vortex
type steel pipe
-Cool/Hot air.
Temperature adjustable
Sediment Filter Housing Amici Water Protech water 3 replace every
Filter nominal filters Systems A. C. system month or Php 1,599
Cortes Ave, Alang-alang , depending on
Mandaue City, Mandaue City, the quality of
Cebu Cebu the water
source

Removes more Amici Water Protech water 2 usually 6 to 8 9,751

GAC or contaminants to larger Systems A. C. system months
Carbon surface area. Cortes Ave, Alang-alang , average but if
Filter Mandaue City, Mandaue City, the water
Cebu Cebu source is not
good maybe 4
months only

absolute-rated filter Amici Water Protech water 2 8 months to 2,599

Carbon Systems A. C. system 1.5 years
fillings Cortes Ave, Alang-alang , average
Mandaue City, Mandaue City, lifespan, or will
Cebu Cebu be replaced if
broken or the
water starts to
smell
 MOTOR a mechanical device that Amici Water Ebay 2 units 2-5 years 4,500
PUMP moves fluid or gas by Systems A. C.
pressure or suction. Cortes Ave,
Mandaue City,
Cebu

Deep Well 1HP motor makes it Amici Water Ebay 1 2-5 years 10,000
water pump powerful enough Systems A. C.
to pump water that is up Cortes Ave,
to 200 feet in depth Mandaue City,
. Cebu

Table 16 shows the Auxiliary tools and Equipment of Water refilling Station

Material Handling Equipment

WATER REFILLING STATION

Tool Picture Description Main Supplier Alternative Supplier Quantity Life Span Price
Equipment
-easy to transport CITI Hardware Belmont Hardware
-easy folding Bulacao, Pardo P. Burgos Street, 1 15-20 years 5,950.00
TROLLEY -galvanize iron Cebu City Cebu City
handle
-four wheel
-Load Capacity
150kg
Table 19 shows the Vehicle for Water refilling Station
Vehicle
WATER REFILLING STATION
Tool Model Description Main Supplier Alternative Supplier Quantity Life Span Price
Equipment

MULTICAB SUZUKI -12 valve SUZUKI South SUZUKI 1 unit 15-20years Php145,000.0
Pick-Up -manual Talisay, Cebu City Mambaling, Cebu 0
-diesel City

Table shows the Vehicle for Water refilling Station

Safety Gadgets and Sanitary Tools

Tool Picture Description Main Supplier Alternative Supplier Quantity Price

Equipment
MASK -filter paper + spunlace cloth Mega Value Sacred Heart 1 box Php299
-20g F.Ramos St. Cebu City Pharmacy
-size 17.5x9.5cm B.Rodriguez St. Cebu
-disposable non-woven face City
mask
 HAIRNET -nylon mesh CITI Hardware Belmont Hardware 1 box Php230
-18’,21’ Bulacao, Pardo Cebu P. Burgos Street,
-light weight and breathable City Cebu City

PLASTIC -waterproof CITI Hardware Belmont Hardware 4 pcs Php189.00

APRON -Disposable PVC Apron Bulacao, Pardo Cebu P. Burgos Street,
City Cebu City

BOOTS -Safety boots CITI Hardware Belmont Hardware 2pairs 345.00

-Waterproof PVC boots Bulacao, Pardo Cebu P. Burgos Street,
-size 37-47 City Cebu City

FIRE -05lbs cap CITI Hardware Belmont Hardware 5lbs Php 1,700.00
EXTINGUISH -non toxic Bulacao, Pardo Cebu P. Burgos Street,
ER -portable type City Cebu City
 LIQUID -liquid EVERLIGHT La Nueva 1liter Php 98.00
HAND SOAP -herbal CHEMIECOLOR Supermarket
-basic cleaning 417 Gonzales St, Magallanes St. Cebu
Carbon Market, Cebu City
City

HAND DRYER -hi-speed CITI Hardware Belmont Hardware 1 2100.00

HEAT -only 950 watts Bulacao, Pardo Cebu P. Burgos Street,
-uses 40% less energy City Cebu City

FIRST AID KIT -personal protection CITI Hardware Belmont Hardware 1 Php 726.00
-solution for safety Bulacao, Pardo P. Burgos Street,
Cebu

-360 degree rotating mop CITI Hardware Belmont Hardware 1 Php988.00

head Bulacao, Pardo Cebu P. Burgos Street,
MOP -ergonomic design City Cebu City
-Revolving mop
-quick dry spin-dryer bucket
 BROOM -cleaning tool CITI Hardware Belmont Hardware 1 65.00
-made of materials such as Bulacao, Pardo Cebu P. Burgos Street,
plastic or corn husks and City Cebu City
roughly parallel to a
cylindrical handle the
broomstick
-size 3.5 inches

DUSTPAN -plastic/stainless steel CITI Hardware Belmont Hardware 1 125.00

-flat scoop Bulacao, Pardo Cebu P. Burgos Street,
City Cebu City

Table 20 show the Safety Gadgets and Sanitary Tools

Repair and Maintenance for Machines and Equipment

Tools/Equipment Warranty Repair Services Availability of Spare Parts Accessibility of Schedule for
/Machines Service Centre Maintenance

Delivery Truck 5 YEARS Suzuki Auto North Suzuki Auto North A. S. Fortuna St, 2500 miles
Mandaue City,
Cebu
Air Conditioner 5 YEARS LG Aircon LG Aircon Hernan Cortes St, 6 months
Mandaue City,
Cebu

Computer 1 YEAR Integrated Computer Integrated Computer 3/F Room 314 Jesa 3 months
Systems, Inc. - Cebu Systems, Inc. - Cebu Service ITC Building 90,
Service Center Center General Maxilom
Ave, Cebu City
Printer 1 YEAR Epson Service Center Epson Service Center Door 20 Vel Ouano 3 months
Bldg, M. C. Briones
St, Mandaue City,
6014 Cebu

Table 21 shows the Repair and Maintenance for Machines and Equipment
Energy Requirement

Tools and Equipment Energy Requirement Quantity

Machines Water Refilling 4,500W 1
Water pump 750hp 2
Water pump 1000hp 1
Computer 450W 1
Exhaust Fan 240W 2
Printer with scanner 40W 1
Hot and cold dispenser 420W 1
Straight Fluorescent Tube 20W 2
Air Conditioner 1000hp 1
Computer 450W 1
Telephone 0.748W 1
Wall fan 75W 1

Table 22 shows the different tools or equipment that require electricity to function. The table

also shows their corresponding energy requirements as well as the quantity needed per tool or equipment.
Office Equipment

Tool Model Description Main Supplier Alternative Supplier Quantity Life Span Price
Equipment
COMPUTER Dell Inspiration 3252 Trimax Computer Wired Systems 1unit 5-10 years 29000.00
Intel Pentium J3710 Supplies Corporation
4GB Desktop with General Maxilom Patrick’s Square R
19.5”Dell Monitor Ave. Cebu City Aboitiz St, Cebu City
AIRCON -1.0HP CITI Hardware Belmont Hardware 1 10-15 years 34999.00
-Wall Mounted Spilt Bulacao, Pardo P. Burgos Street,
Type Cebu City Cebu City
-Fast Cooling
Technology
-Cold Catalyst Filter
PRINTER -print speed up to Trimax Computer Wired Systems 1 10-15 years 7450.00
33ppm(9.2ipm) Supplies Corporation
-print resolution up General Maxilom Patrick’s Square R
to 5760 dpix1440 dpi Ave. Cebu City Aboitiz St, Cebu City
-high yield ink bottles
HOT AND -220V CITI Hardware Belmont Hardware 1 5-10 years 4795.00
COLD -450watts Bulacao, Pardo P. Burgos Street,
DISPENSER -Water collector for a Cebu City Cebu City
mess free
environment

-multi-purpose bin CITI Hardware Belmont Hardware 3 1-3years 161.00

TRASH BIN -made from high Bulacao, Pardo P. Burgos Street,
quality plastic Cebu City Cebu City
The Table 23 shows the Office Equipment

Furniture and Fixtures

Tool Model Description Main Supplier Alternative Supplier Quantity Life Span Price
Equipment

COMPUTER Adjustable Trimax Computer Wired Systems 1unit 5-10 years 2150.00
 STAND Supplies Corporation
General Maxilom Patrick’s Square R
Ave. Cebu City Aboitiz St, Cebu
City

TABLE -60x60cm square CITI Hardware Belmont Hardware

-wooden type Bulacao, Pardo P. Burgos Street, 1 5-10 years 1280.00
Cebu City Cebu City

OFFICE CHAIR -360 degrees swivel CITI Hardware Belmont Hardware 1 3-6 years 1499.00
function Bulacao, Pardo P. Burgos Street,
-breathable mesh Cebu City Cebu City
fabric
-270mm nylon base
and casters

CUSTOMER -metal CITI Hardware Belmont Hardware 1 5-10 years 1499.00

CHAIR (GOOD -stainless steel Bulacao, Pardo P. Burgos Street,
FOR 4 OR 5) -good for 4 person Cebu City Cebu City
-
12000x12000x16280
mm

STAINLESS H1850xW900xD400 CITI Hardware Belmont Hardware 10-15 years 11073.00

STEEL CABINETS mm Bulacao, Pardo P. Burgos Street, 1
(FOR OFFICE -packaging volume: Cebu City Cebu City
USE) 0.16cm
-thickness:0.6mm
 before painting

The Table 24 shows the Furniture’s and Fixtures

Inventoriables

Tool Equipment Picture Supplier Alternative Supplier Quantity Price

Punch cards People’s Educational Visayan Educational 250.00/100pcs
Supply Supply Corp.
Colon Street, Cebu City Magallanes St, Cebu City

Tissue papers EVERLIGHT La Nueva Supermarket 6rolls 29.75

CHEMIECOLOR Magallanes St. Cebu City
417 Gonzales St,
Carbon Market, Cebu
City

Handsoap EVERLIGHT La Nueva Supermarket 1 liter 98.00

CHEMIECOLOR Magallanes St. Cebu City
417 Gonzales St, Carbon
Market, Cebu City

Trash bag Ong Kin King Inca Plastic Inc. 1roll 303.00
Plaridel St. Cebu City M.J Cuenco Ave, Cebu
City
 Epson ink Trimax Computer Wired Systems 1pc each /4 colors 359.00
Supplies Corporation
General Maxilom Ave. Patrick’s Square R
Cebu City Aboitiz St, Cebu City

Long bond paper People’s Educational Visayan Educational 1 ream 310.00

Supply Supply Corp.
Colon Street, Cebu City Magallanes St, Cebu City

Short bond paper People’s Educational Visayan Educational 1 ream 310.00

Supply Supply Corp.
Colon Street, Cebu City Magallanes St, Cebu City

Long Folder People’s Educational Visayan Educational 1 ream 150

Supply Supply Corp.
Colon Street, Cebu City Magallanes St, Cebu City

Short folder People’s Educational Visayan Educational 1 ream 150

Supply Supply Corp.
Colon Street, Cebu City Magallanes St, Cebu City
Brown envelope People’s Educational Visayan Educational 1 ream 150
short Supply Supply Corp.
Colon Street, Cebu City Magallanes St, Cebu City

Brown envelope People’s Educational Visayan Educational 1 ream 150

short Supply Supply Corp.
Colon Street, Cebu City Magallanes St, Cebu City

STAPLER People’s Educational Visayan Educational 1 pc 57.00

Supply Supply Corp.
Colon Street, Cebu City Magallanes St, Cebu City

STAPLE WIRE People’s Educational Visayan Educational 1box 32.00

Supply, Colon Street, Supply Corp.Magallanes
Cebu City St, Cebu City

Ballpen People’s Educational Visayan Educational 1box 120

Supply Supply Corp.
Colon Street, Cebu City Magallanes St, Cebu City
 Table 24 shows the Inventoriables

INDIRECT MATERIALS (INVENTORIABLES)

Tool Equipment Picture Description Supplier Alternative Supplier

Gallons -1360 cubic inches Liquid Packaging Aqua Star
-778.5 fl oz. Corporation, Labogon Ibabao Estancia, Mandaue City
Mandaue City (+6332) 236-7495
(032)420-4399

Cap -100% new food grade Liquid Packaging Aqua Star

material Corporation, Labogon Ibabao Estancia, Mandaue City
-dustproof. Non-spill and Mandaue City (+6332) 236-7495
superior quality (032)420-4399

DISH -Detergent EVERLIGHT CHEMIECOLOR La Nueva Supermarket

WASHING -Liquid 417 Gonzales St, Carbon Magallanes St. Cebu City
LIQUID Market, Cebu City

SPONGE -10x7x3cm EVERLIGHT CHEMIECOLOR La Nueva Supermarket

-Polyester Fiber 417 Gonzales St, Carbon Magallanes St. Cebu City
-High Density Sponge Market, Cebu City

SEAL -size 13cm Liquid Packaging Aqua Star

-color blue Corporation, Labogon Ibabao Estancia, Mandaue City
-heat sealing Mandaue City (+6332) 236-7495
(032)420-4399
STICKER -product Sticker Liquid Packaging Aqua Star
Corporation, Labogon Ibabao Estancia, Mandaue City
Mandaue City (+6332) 236-7495
(032)420-4399

The 25 table shows the Indirect Material Inventoriables

 VI. HUMAN RESOURCE MANAGEMENT

COMPANY MISSION AND VISION

Human Resource Management is the management of human resources. HR is primarily

concerned with the management of people within organizations, focusing

on policies and on systems. HR departments are responsible for overseeing employee-

benefits design, employee recruitment, training and development, performance

appraisal, and rewarding (e.g., managing pay and benefit systems). HR also concerns

itself with organizational change and industrial relations, that is, the balancing of

organizational practices with requirements arising from collective bargaining and from

governmental laws

(source: https://en.wikipedia.org/wiki/Human_resource_management)

MISSION

To be a customer and environmental friendly business, by conserving water and

providing excellent quality service, ensuring the customers safety and satisfaction at the

most affordable price.

VISION

To be a company that exceeds customer expectations in service, quality, and value. To be

the trusted and recognized brand in our water refilling station and self-serve

motor/carwash business.
Headcount for All Employees

Position No. of Employees

Operations Manager 1
Book Keeper 1
Technician 1
Water Station crew 2
Driver 1
Helper 2
Table 27

1 –Operations Manager – Overseas store operations at least 4 hours a day

1 – Accountant/Book keeper – Makes financial statement of business operations

- Logs and handles cash sales and purchases

1 – Technicians – Maintains and runs the machine OPRATES

1 – Driver – Transport refilled containers to customer’s home

2- Service station crew worker- Accepts and refills containers of customers

1- Helper- Delivers the product to the customer

1 FRONT LINER

Head Count Computation:

96 hrs
16 hrs x 1machine x 6 days= =2 operator
48 hrs
 CEO/OWNER

BOOK KEEPER OPERATIONS

MANAGER

SERVICE FRONT
STATION DRIVER TECHNICIANS
(2) HELPER LINER
CREW

Figure 21 shows the Organizational Chart of JAM

We will ensure that we only hire people that are qualified, honest, hardworking, with

experience in terms of their position, customer centric and are ready to work to help us

build a prosperous business that will benefit all the stake holders (the owners,

workforce, and customers) to occupy the following positions;

 Chief Executive Officer (Owner)

 Operation Manager

 Service Station Crew

 Book Keeper / Cashiers

 Front Liner

 Drivers

 helpers

Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

 Increases management’s effectiveness by recruiting, selecting, orienting, training,

coaching, counseling, and disciplining managers; communicating values,

strategies, and objectives; assigning accountabilities; planning, monitoring, and

 appraising job results; developing incentives; developing a climate for offering

information and opinions; providing educational opportunities.

 Responsible for fixing prices and signing business deals

 Responsible for providing direction for the business

 Creating, communicating, and implementing the organization’s vision, mission,

and overall direction – i.e. leading the development and implementation of the

overall organization’s strategy.

 Responsible for signing checks and documents on behalf of the company

 Evaluates the success of the organization

Water Refill Station Operations Manager

 Responsible for overseeing the smooth running of the water refill station

 Map out strategy that will lead to efficiency amongst workers

 Responsible for training, evaluation and assessment of workers

 Ensures that the steady flow of both raw materials to the plant and easy flow of

finished products through wholesale distributors to the market

 Ensures operation of equipment by completing preventive maintenance

requirements; calling for repairs.

 Ensures that the water refill station meets the expected safety, hygiene and

health standard at all times.

 Responsible for overseeing the smooth running of HR and administrative tasks

for the organization

 Updates job knowledge by participating in educational opportunities; reading

professional publications; maintaining personal networks; participating in

professional organizations.

 Enhances department and organization reputation by accepting ownership for

accomplishing new and different requests; exploring opportunities to add value

to job accomplishments.

 Defining job positions for recruitment and managing interviewing process

 Carrying out staff induction for new team members

 Responsible for training, evaluation and assessment of employees

 Manage external research and coordinate all the internal sources of information

to retain the organizations’ best customers and attract new ones

 Model demographic information and analyze the volumes of transactional data

generated by customer purchases

  Identify, prioritize, and reach out to new partners, and business opportunities et

al

 Responsible for supervising implementation, advocate for the customer’s needs,

and communicate with clients

 Develop, execute and evaluate new plans for expanding increase sales

 Document all customer contact and information

 Represent the company in strategic meetings

 Help increase sales and growth for the company

Book keeper / Cashier

 Responsible for preparing financial reports, budgets, and financial statements for

the organization

 Provides managements with financial analyses, development budgets, and

accounting reports; analyzes financial feasibility for the most complex proposed

projects; conducts market research to forecast trends and business conditions.

 Responsible for financial forecasting and risks analysis.

  Performs cash management, general ledger accounting, and financial reporting

 Responsible for developing and managing financial systems and policies

 Responsible for administering payrolls

 Ensuring compliance with taxation legislation

 Handles all financial transactions for the organization

 Serves as internal auditor for the organization

Front Desk:

 Entertain any customer that will visit

 Responsible for selling walk-in customers or as requested.

 Handle any other duty as assigned by the water refill station manager

 Assist the water refilling station manager

Service Station Crew :

 Ensures that the pumps are performing and dispensing treated water as required
  Assist in filling water tankers with water as requested

 Handles any other duty as assigned by the water refill station manager

Drivers:

 Assist in loading and unloading purified water.

 Maintain a logbook of their driving activities to ensure compliance with federal

regulations governing the rest and work periods for operators.

 Keep a record of vehicle inspections

 Assist the water refill station manager in planning their route according to a

delivery schedule.

 Inspect vehicles for mechanical items and safety issues and perform preventative

maintenance

 Comply with driving rules and regulations (size, weight, route designations,

parking, break periods etc.) as well as with company policies and procedures

 Collect and verify delivery instructions

 Report defects, accidents or violations

Helper:
 Handle any other duty as assigned by the water refill station manager

 Assist the Driver in the delivery of the product

Performance Management & Appraisal

Compensation and Benefits ( USBBBBBBBBOOOOOOOONOOOOON)

Salary Benefits Incentives

Operations Manager P o SSS o Service Incentive Leave

Book Keeper P o Pag- Ibig o Meal and Rest Period

Technician P o Phil Health o Holiday/Christmas Bonus

Water Station crew P o Insurance o Mid-Year Bonus

Driver P o 13th month pay

Helper P o Overtime pay and Holiday

Total Php monthly Pay/ Night shift pay

Table 28 Shows the Performance Management and Appraisal

 PERFORMANCE APPRAISAL FORM

EMPLOYEE NAME: _________________________

EMPLOYEE DESIGNATION: __________________
SUPERVISORS NAME: _____________________
EVALUATION DATE: ________________________
PURPOSE OF CURRENT APPRAISAL
___ ANNUAL APPRAISAL ___ PROVISIONAL PERIOD ___ SPECIAL

This performance appraisal process is designed to evaluate an employee

performance over a specified period of time. When the process works well, the

employee and his/her supervisor plan together to build on strengths and develop those

areas needing improvement. During the performance appraisal session, time is set aside

to:

1. Restate expectation about job responsibilities and performance standards

2. Evaluate job performance against previous expectations

3. Discuss future development opportunities and relate them to business needs.

Note:

Manager: In evaluating an employee’s performance, you are to identify strengths and

areas of performance which require improvement. You are asked to provide examples of

the employee’s performance to illustrate the ratings you give. Examples based on your

observation works best.

Instructions: Please rate the employee according to evaluation criteria for work

performance.

Rating system: 5- Excellent 4 – Satisfactory 3- Good 2- Needs improvement 1- Poor

PERFORMANCE STANDARD RATING

Job Knowledge/ functional
Punctuality and attendance
Response quickly to meet customer needs
and resolve problems
Seeks opportunities to improve services to
meet customer needs
Establishes rapport; builds and maintains
effective working relationships
Practice attentive and active listening
Takes independent actions when
appropriate
Uses time effectively and stays focused to
ensure work is completed
Ensures high quality output/services
Demonstrate professionalism and
workplace etiquette
Identifies issues, problems and
opportunities and determines that action is
needed
Maintain effective performance under
pressure
Presents a positive disposition and
maintains constructive interpersonal
relationships when under stress
Work Ethics
Overall Performance Rating
Average Performance Rating: _________
Strengths:
______________________________________________________________________
Areas that need improvements:
______________________________________________________________________
______________________________________________________________________

________________________________
Manager Signature over printed name
MATRIX FOR THE SALARY INCREASE IN REFERENCE TO THE RATING

Performance Rating Projected Increase Applied Increase

1.00 – 1.79 2.6% -0-
1.80 – 2.59 2.6% -0-
2.60 – 3.39 2.6% 2.6%
3.40 – 4.19 2.6% 2.6%
4.20 – 5.00 2.6% 2.6%
Table 29 Matrix for the Salary Increase Rating

Note: Projected increased is based on the inflation rate as of December 2016 as

provided by the National Statistics Office.

Table above presents the Matrix as basis for salary increased as well as the

performance appraisal shown in the previous page as one means to evaluate employee

work performance within the business. However, salary increase would still depend to

manager’s decision and results to the evaluation.

PERMITS

Figure 23 Mayor’s Permit

Figure 24 DTI Permit
Figure 25 Sanitary Permit
Contingency Plan

The proponents mentioned that one of the company’s raw water came from the

ground water, which can be easily contaminated. To address this, the company will

undergo monthly laboratory check-up in Aqua Laboratories monthly which is the

trusteed water laboratory in the Health Center of Mandaue City and with Department

of Health.

Also, in the quality control the proponents mentioned that during the operation,

the company does Quality Check after the entire process. To determine the accurate pH

Level of the Water, by getting a sample of the processed water through the TDS Meter

(total dissolved meter). The required level of the City Health of Mandaue is Level 10.

Source water and product water are subject to regular monitoring by the health office.

They usually have random or surprise visit at the site.

In case of contamination, the proponents will get it raw water at the Carmen,

Danao

VII. Inventory management

The Demand that the proponents used are those respondents who

purchases at any purified drinking water station. So we assumed that they

will be the one to provide the gallons and cap for they already own one

and they will only refill at the store. (See appendix J for the computations)

Inventory of Primary Materials

Primary Daily usage Lead Time Reorder Point Packaging
Materials Quantity
Seal 1 1 4,936pcs
Industrial Salt 10kg 1 20kg 10kg
Cap 1 1
Sticker 1 4,936pcs
Diswashing 74.04Liters 1 148 Liters
Liquid

Table shows the Inventory of Primary Materials

Inventory of Auxiliary Materials

Auxiliary Monthly Lead Time Reorder Point Unit Minimum Order

Materials Usage (Monthly) Quantity

Faucet 2 60 1 unit 2 units

TDS Meter 1 60 1 unit 1 unit
Heat Gun 1 60 1 unit 1 unit
Sediment 3 1 3 unit 3 unit
Filter
2 6 2 unit 1 unit
GAC or
Carbon Filter
2 8 2 unit 1 unit
Carbon
fillings
Motor Pump 2 24 2 unit 1 unit
Table shows the Inventory of Primary Materials
JIT ( JUST-IN-TIME)

We decided to use JIT inventory management to our inventory. This means that our company does not hold safety stock and
operates with low inventory levels.

WALK –IN CUSTOMERS

CUSTOMERS
REFILL

Figure
ORDERED BASE

CUSTOMER

DELIVERY

REFILL
 Figure
Available Minutes for Production
Takt Time Takt Time=
Required Units of Production
So we start with 8 hours:
8 hours x 60 minutes = 480 total minutes

But there is a 10 minute start-up process in the morning, two 10 minute breaks during the day, and 15 minutes shut-down and
clean up at the end of the shift for a total of 45 minutes. This time is not production time, so it is subtracted from “available
minutes”:

480 – 45 = 435
So when determining takt time, we would use 435 minutes as the baseline. If levelled customer demand was 1,890 container /
day, then the takt time would be:
435
4.34 min ( 260 sec❑ )= Note that you can just as easily do this for a week, rather than a day.
1,890
435 minutes x 6 days = 2160 total available minutes
2160
4.34 min ( 260 sec❑ )=
11,340

Closeness Rating
Closeness Rating
 VIII. PLANT LOCATION

Alternative Sites

North Road Maguikay

Cento, Mandaue City

Location Planning/Factor Rating

Location Planning/Factor Rating

Raw Scores (n/50) Weighted Scores

Location Factor Weights
A B C A B C
Availability of land 0.29 50 30 40 14.5 8.7 11.6
Availability of labor 0.14 50 50 50 7 7 7
Availability of utilities 0.36 50 40 50 18 14.4 18
Consideration of the raw material 0.21 40 20 30 8.4 4.2 6.3
source
1.00 47.9 34.3 42.9
Table Factor rating of the location planning
This table shows the factor rating of the location planning of the
company. The proponents decided to situate the company in VIBO Place, N.
Escario St, Cebu City because of its highest weighted scores compared to the
other location (see Appendix _ for computation). Raw scores are based on the
proponent’s observation and decision with 10 is the least important and 50 as
the most important. Given that all factors are in multiples of 10.
Location Map

Figure shows the Location Plant of the company

Plant Site
 IX. PLANT LAYOUT

Plant Layout

Building Structure
 Figure

Site Development Plan

Bill of Materials for the Building Structure

BILL OF MATERIALS
ITEMS QUANTITY COST TOTAL COST
 Gravel 10 cu. m P1500 15000
Sand 5 cu. m P1500 7500
CEMENT 50 bags 254/ bag 12500
Plywood 1/4 50pcs 405/pc 20250
S4S 2x2x10 50 pcs 240/pc 12000
Common nails 1 5kilos 45/kilo 225
Common nails 4 5kilos 55/kilo 275
CHB 300pcs 15/pc 4500
Deformed bar
10mmx6m G40 50pcs 124/pc 6200
10mmx7.5m G40 50pcs 150/pc 7500
10mmx9m G40 100pcs 190/pc 19000
10mmx10.5m G40 50pcs 210/pc 10500
10mmx12m G40 50pcs 240/pc 12500
12mmx9m G40 40pcs 190/pc 7600
12mmx10.5m G40 30pcs 210/pc 6300
12mmx12m G40 50pcs 240/pc 12000
C -purlins 10 625/pc 6250
Color roof 9shts 2000/sht 18000
Doors sets 4sets 10000/set 40000
Window sets 6 sets 10000/set 60000
60mmx60mm Floor 50pcs 65/pc 3250

tiles
20cmx20cm Floor tile 10 pcs 20/pc 200
Tile grout 6 bags 150/bag 900
Setting and topping 1lot 6000 6000
Gutter 4shts 750/shts 3000
 Sag rod 10lghts 240/lghts 2400
Ceiling cost 1 lot 25000/lot 25000
Neutralizer .5li 480/li 240
Surface Primer 2 gals 495/gal 990
Acrylic Gloss Latex 3 gals 1900/gal 5700

Paint
Acrylic Roof Shield 3 gals 850/gal 2550

Paint
Wood Primer 1 gal 590/gal 590
QDE 1gal 650/gal 650
Paint thinner 1 gal 300/gal 300
Concrete Primer 1 gal 520/gal 520

Sealer
TOTAL COST P330,390

Floor Plan with Flow of Production

Plumbing Layout
Plumbing Lay-out for the Machines
Electrical Layout
Utilities
Electrical Consumption

The Visayan Electric Company (VECO) will supply the electricity needed by the company. The following table shows the details and

cost of the company's electrical consumption.

Tools/Equipment Energy Requirement Quantity No. of Consumption (kWh)

Monthly Yearly
(kWh) Hours Used

per Day
Machines water refilling 4,500 1 8 36,000 900,000
Water pump 0.559275 2 8 8,948 223,700
Water pump 0.7457 1 8 5,965 149,125
Computer 450 1 8 3,600 90,000
Exhaust Fan 240 2 8 3,840 96,000
Printer with scanner 40 1 3 120 3,000
Hot and cold dispenser 420 1 8 3,360 84,000
Straight Fluorescent Tube 20 2 8 320 8,000
Air Conditioner 0.7457 1 8 5,965 149,125
Computer 450 1 4 1,800 45,000
Telephone 0.748 1 8 5.984 149,600
Wall fan 75 1 8 600 15,000
TOTAL 70,524 1,912,550
Telephone Consumption

The company will have the Philippine Long Distance Telephone (PLDT) provide landline and internet needs. The company will choose

PLDT's DSL PLAN 1299 with speed of up to 3 Mbps. Because of payment option we decided to get 24 months installment with a

monthly fee with P 1,408. Details of the plan are shown in the figure below.
Fuel Consumption

The Delivery truck will be traveling from J.A.M.P Water Refilling station every Saturday to around the Basak area for weekly delivery

of gallons to household who order with whole sale.

Base on our survey, out of 373 respondents, 235(63%) of it would want that their purified water would be delivered.

Total # of Households 5,313 x 63%= no of households to be delivered weekly

The delivery truck has 4 trips.

From To Distance(KM)
J.A.M.P Water refilling station Household A 1.5
Household A Household B 0.9
Household B Household C 1.0
Household C J.A.M.P Water refilling station 2.5

Gantt Chart of Pre-operating Activities

X. EVALUATION

XI. REFERENCES
http://www.sciencedirect.com/science/article/pii/S0022169410001435

http://www.fda.gov.ph/drafts-for-comments/417835-policies-and-guidelines-on-the-regulation-of-water-treatment-devices-

systems-in-the-philippines

https://www.google.com.ph/search?

q=water+refilling+station&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiUh7CA0tjVAhUDurwKHQCWCBsQ_AUICigB&biw=1366&

bih=613
 FINANCIAL FEASIBILITY

INTRODUCTION
This aspect deals with the study of investment. It includes the dynamics of assets and

liabilities over time under the condition of different degrees of uncertainty risk. This is where

the proponents could tell if the study is feasible.

Major Assumptions

The financial statement of the business was prepared under the following major assumption:

DIRECT MATERIALS
Direct materials will all be supplied from accredited suppliers in order to take advantage of
purchasing discounts and to make sure the quality of its products and its timely delivery. Purchases
will be done on a weekly basis to avoid spoilage.

DIRECT LABOR
All employees will be given a salary which is more than the minimum wage to encourage them to do

better in their work. They will work 6 days a week with one day off during weekdays only. Late and

absences will be deduction from their salaries every month.

OVERHEAD ACCOUNTS
Overhead includes employees not directly involved in the production and service but oversees it.

The Manager considered being an overhead in the business as well as electricity and water for easy

monitoring.
FIXED ASSET REQUIREMENTS
LAND
Rent expense is at Php30, 000.00 per month and is projected to be fixed in amount for the first five
years of operations.
BUILDING
Useful life for Building is 18 years respectively
FURNITURE’S AND FIXTURES
 Useful life for the furniture’s and fixtures is 15 years respectively

VEHICLE
Useful life for the vehicle is 15 years respectively
MACHINERIES AND EQUIPMENTS
Useful life for the machineries and equipment are 15 years respectively

FINANCIAL ASSUMPTIONS