PERT / CPM

Marketing of Manufactured Sand (S1) for use in Commercial Concrete

10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240

Setting-up of Office and Facilities

Planning of Hi-way routes from

Contracting of 3rd Truck Quarry to Customer Sites, Process
Party Aggregate Dimension Flow Creation for Delivery Receiving,
Producers Database Setting of Product Standard
Creation Specification

15 15 45

Contracting of 3rd Delivery Trial Runs, Data

Screening and Hiring of Personnel Product Presentation and
Party Haulers Gathering and Assessment Consistent Delivery of Quality Products to Customers
Customer Orientation
60 30 30 30 90

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 PERT / CPM

Marketing of Manufactured Sand (S1) for use in Commercial Concrete

ITEM No. DESCRIPTION Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8

I Screening and Hiring of Personnel

II Setting-up of Office and Facilities
III Contracting of 3rd Party Haulers
IV Contracting of 3rd Party Aggregate Producers
V Product Presentation and Customer Orientation
VI Truck Dimension Database Creation
Planning of Hi-way routes from Quarry to Customer Sites,
Process Flow Creation for Delivery Receiving, Setting of
VII Product Standard Specification
VIII Delivery Trial Runs, Data Gathering and Assessment
Consistent Delivery of Quality Products to Customers
IX
PROCESS FLOW CHART FOR ORDER TAKING TO ORDER FULFILLMENT

Sales Officer inquires

customer's volume
requirement

Client Sales Officer

requires NO inquires about
deliveries future volume
today? requirements

YES

Sales Officer requests

for a Purchase Order

Sales Officer channels

customer's delivery
schedule and volume
requirement to the
Logistics Officer

Hauling Sales Officer

Fleet NO advises client of
available? the status

YES

Logistics Officer
confirms product
procurement to the
Supply and Quality
Control Engineer

A
B
 A B

Are the Logistics Officer

products NO advises Sales
available? Officer regarding
the status

YES

Logistics Officer
confirms quality of
product with the
Supply & Quality
Control Engineer

Quality of
products NO
OK?

YES

Logistics Officer
instructs hauling fleet
to proceed to
designated source
quarries

Haulers proceeds to
source quarry, load
products and delivers
to customer
 PROCESS FLOW CHART FOR QUARRY INSPECTION

Check
Check for
for latest
latest blasting
blasting activity
activity

Quality
Quality Control
Control Engineer
Engineer

Check
Check amount
amount and
and quality
quality of
of
current raw feed
Recent No
blasting Quality
Quality Control
Control Engineer
Engineer
done?
done?
 
Yes

Check
Check amount
amount and
and quality
quality of
of new
new
and
and current
current raw
raw feed
feed

Quality
Quality Control
Control Engineer
Engineer
 

No Check
Check quality
quality and
and amount
amount of
of
Quality
Quality of
of raw current
current stockpile
stockpile
feed Ok?

Quality
Quality Control
Control Engineer
Engineer
Yes  

Check
Check quality
quality of
of finish
finish products
products on
on
stockpile
stockpile
  
Quality
Quality Control
Control Engineer
Engineer
 

Advise
Advise Logistics
Logistics Officer
Officer to
to divert
divert
No haulers
haulers to
to another
another source
source quarry
quarry
Is
Is Quality
Quality of
of
products
products onon
stockpile
stockpile OK?
OK?
 
Quality
Quality Control
Control Engineer
Engineer
 
Yes

Advise
Advise Logistics
Logistics Planner
Planner to
to haul-
haul-
out
out from
from the
the source
source quarry
quarry

Quality
Quality Control
Control Engineer
Engineer
 
 PROCESS FLOW CHART FOR CONTROL OF NON-CONFORMING PRODUCTS

Advise
Advise to
to hold
hold delivery
delivery

Quality
Quality Control
Control Engineer
Engineer

Obtain
Obtain new
new samples
samples from
from
stockpile/delivery
stockpile/delivery
ASTM
ASTM C C 136
136
Quality
Quality Control
Control Engineer
Engineer
equipment
ASTM C 33
ASTM D 75
ASTM
ASTM C C 702
702
  
Perform re-test for the
specification that failed Record Log Book

Quality
Quality Control
Control Engineer
Engineer

Check
Check &
& Evaluate
Evaluate Test
Test Results
Results
  Test Result

Quality
Quality Control
Control Engineer
Engineer

Advise Logistics
No Officer
Officer to
to divert
divert
Passed?
Passed? haulers to a different
source quarry

Yes
Quality Control
Advise
Advise hauler
hauler to
to proceed
proceed with
with
Engineer
Engineer
loading
loading of
of aggregates/continue
aggregates/continue  
sourcing
sourcing from
from the
the same
same quarry
quarry
  

Quality
Quality Control
Control Engineer
Engineer

Prepare
Prepare Final
Final Test
Test Result
Result
Test Result
 Prepare
Prepare Final
Final Test
Test Result
Result
Test Result
Quality
Quality Control
Control Engineer
Engineer
 

PROCESS FLOW CHART FOR SAMPLING AND TESTING OF MATERIALS

Sample
Sample of
of Processed
Processed Sand
Sand

ASTM C 136
equipment
equipment
ASTM C 33 Quality Control Engineer
ASTM D 75
ASTM C 702
 
 
Prepare
Prepare test
test sample
sample

Quality
Quality Control
Control Engineer
Engineer

Perform
Perform the
the complete
complete quality
quality test
test
required
required Record Logbook

Quality Control Engineer

Encode all Physical Test Results Test Monitoring

Worksheet
Worksheet

Quality Control Engineer

Check
Check &
& Evaluate
Evaluate Test
Test Results
Results
Test Result

Quality Control Engineer

Prepare
Prepare Final
Final Test
Test Result
Result
Test Result
Prepare
Prepare Final
Final Test
Test Result
Result
Test Result

Quality
Quality Control
Control Engineer
Engineer
 
 Inexperienced Manpower Insufficient Manpower

Unproductive Quality Control Team

Inefficient Work Process Insufficient Q.C. Equipment

Inefficient Quality Control System

Contamination of Raw Materials Product quality

Overburden/Weathered Materials

Raw Feed Improper loading

Finished Product

No washing station
Delayed Blasting
Inefficient Crushing Plant

Screen Sizing

Inefficient Plant Maintenance

Quality Issues Slow Production

Delayed notice to Haulers
Plant Breakdowns

Long Queues at Plant

No stockpile Insufficient Sources Insufficient Haulers

Insufficient Deposits
Delayed Deliveries

Services

Unsatisfactory Customer Complaint Actions

No monitoring of deliveries Slow analysis & Lack of technical knowledge

problem solving
 Product demand

Increase in sales Material and Resource

personnel Pricing Local levels
Fuel Cost regulations

Advertising
investments Increase in sales Competitive Behavior Capacity
efforts (O)

Innovation (O) Ownership

Launch of special
promotions structure

Variety of products
Improved customer
and services offered
support services
 Traffic management
Poor queue management Length and duration of queues
Equipment breakdown

Insufficient supply
Turn-around time of trucks

Insufficient fleet Inadequate accredited haulers

Investment in trucks (O)

Competition for supply

Service reliability Use of spot haulers
Plant breakdown Peaked demand (JIT basis)

Lack of revolving fund

Logistics Cost efficiency

Inefficient payment processes

Axle load limit implementation
Increasing fuel cost

Lack of/limited credited lines Low utilization of chartered trucks

Poor fleet management

Inadequate accredited quality sources

New governance
Influx of remittances BPO surge

Gov’t spending prioritization

Commercial and residential development
Market know-how

Opportunity
Assessment Demand
Demand Generation

Needs Analysis Account Strategy (O)

Sales
Inefficient payment processes

Margin management
Product consistency Service implementation
Lack of revolving fund

Inefficient after
Customer support Supply reliability
sales processes Logistics limitation

Unavailability of supply Insufficient fleet

Delays in responding to Slow billing process
customer
complaints/requests
Competition for supply No guaranteed supply
Delay in retrieval of
billing documents
Lack of/limited credited lines
 Expectations Not Met or Possible Probabili
Threats ty Impact Safeguards Contingency Plans
- Make sure services and products
Very - Be flexible on services rendered
1 Market Volume High meet client's specifications and
High and products offered.
expectations.
- Market study to be conducted at
Very - Cost analysis to be done whenever
2 Prices of Products/Services Medium least quarterly to ensure proper
High variables increase/decrease price.
pricing is implemented.

- Ensure that technology to be used - Have back-up technology if chosen

3 Technology chosen succeeds Low Low
is fit for the kind of work to be done. technology fails.

- Re-evaluate processes and pin-

- Constant evaluation of process.
point bottlenecks and lags.
Request inputs/comments from
4 Quality outputs from process Medium Medium - Review inputs and throughputs
process owners to identify possible
and assess areas that needs
problematic areas.
improvement.
- Plan ahead and experiment with
Outputs expected are delivered on Very - Review process and evaluate
5 High theories that may contribute to
time High areas that will need improvement.
quality outputs.

- Need to be conservative as much

Cost of materials, labor, supplies - Re-evaulate estimates and update
as possible when estimating costs.
6 and other major items are within Low High all unit costs to arrive with a realistic
- Consider all variables and give
estimates result.
buffers to provide contingency.

- Proper background review of

Suppliers are reliable. They supply
Very would be contracted services and
7 quality inputs, deliver on time and Medium - Penalize if contract is breached.
High suppliers.
cost within the budget.
- Strict implementation of contracts.

- Secure capital before starting the - Review all expenditures, track

Very business. anomalous transactions if there are
8 Full financial requirements secured High
High - Constant review of expenditures, any and conduct complete review of
profits and losses. all assets and liabilities.

- Intensive screening of applicants

Competent employees recruited - Train/Coach employees.
9 Medium High and make sure that all requirements
and perform well - Hire more competent personnel.
are met for the position.

- Assist in the design of the

production process.
- Contribute knowledge and
Production process runs smoothly Very expertise to further improve - Utilize all available sources and
10 High
without much downtime High production process. hauling fleet.
'- Accredit sufficient sources and
hauling fleet to support volume
requirement.

- Maintain good relationship with

- Evaluate competitor's strategies,
clients.
processes, strengths and
- Always have knowledge of what
Very weaknesses.
11 Threat of greater competition Very High client's needs are.
High - Re-evaluate own company's
- Conduct client visits every month.
strategies, processes, strengths and
- Provide value added services that
weaknesses.
will secure client's trust and loyalty.

- Ensure contracted hauler's drivers

- Have insurance for all employees
12 Threat of accidents Low High have road worthiness and defensive
and equipment.
driving experience.
Very - All contracts shall be reviewed
13 Threat of lawsuits Low
High prior to approval.
- Make sure everything and
14 Threat of "force majeure" Low Medium
everyone is insured.

- Furnish a contract that will include

mitigating measures on losses in
transit.
- Set a standard for tolerable
Very - Implement penalties stipulated at
15 Volume loss during transport Very High allowance on losses. If exceeded,
High the contract.
make clear what the consequences
are.
- Cart/Haul only nominal capacity
(water level) for deliveries.
OPTION 1

Item No. of Units Unit Cost Total Cost

Commercial Office (optional) 1 unit Php 1,700,000 PhP 1,700,000
1 Unit Top of the line Desktop Computer 4 units Php 40,000 PhP 160,000
Furniture and Office Equipment 1 lot Php 120,000 PhP 120,000
Total Investment PhP 1,980,000

Item No. of Units Unit Cost Total Cost

Utilities (Electricity, Water etc.) 1 lot Php 10,000 / month @ 12 months PhP 120,000
Transportation (Fuel and Misc.) 1 lot Php 10,000 / month @ 12 months PhP 120,000
Representations 1 lot Php 20,000 / month @ 12 months PhP 240,000
Sales Officer 1 person Php 18,000 / month @ 12 months PhP 216,000
QC Engineer 1 person Php 15,000 / month @ 12 months PhP 180,000
Logistics Officer 1 person Php 15,000 / month @ 12 months PhP 180,000
Purchasing Officer 1 person Php 15,000 / month @ 12 months PhP 180,000
Total Operating Expenses PhP 1,236,000

OPTION 2

Item No. of Units Unit Cost Total Cost

Dump Trucks 3 units Php 600,000 PhP 1,800,000
1 Unit Top of the line Desktop Computer 4 units Php 40,000 PhP 160,000
Furniture and Office Equipment 1 lot Php 120,000 PhP 120,000
Total Investment PhP 2,080,000

Item No. of Units Unit Cost Total Cost

Utilities (Electricity, Water etc.) 1 lot Php 10,000 / month @ 12 months PhP 120,000
Transportation (Fuel and Misc.) 1 lot Php 10,000 / month @ 12 months PhP 120,000
Representations 1 lot Php 20,000 / month @ 12 months PhP 240,000
Maintenance 1 lot
Fuel
Drivers
Sales Officer 1 person Php 18,000 / month @ 12 months PhP 216,000
QC Engineer 1 person Php 15,000 / month @ 12 months PhP 180,000
Logistics Officer 1 person Php 15,000 / month @ 12 months PhP 180,000
Purchasing Officer 1 person Php 15,000 / month @ 12 months PhP 180,000
Total Operating Expenses PhP 1,236,000
 Vol of Conc 166000
MS 0.4
Vol of Conc 66400
280 Vol of Sand 36520
250 Vol of S1 10956 20 219120
Vol / day 365.2
TL / Day 20.288889

876480 -PhP 1,103,520 0.4426667

2629440 -PhP 1,683,520
PhP 945,920