Sample Feasibilty study TECHNICAL ASPECT

This study discusses about the processes of production and activities of the company. It states also the machineries and equipment used in production and other aspects regarding bringing the raw materials into a finished product ready for trade. Plant layout, size and production schedule are all presented for the purpose of identifying the business operation. Also, product specifications, the product processes using flowchart, the list of machinery, tools, and equipment are enumerated with their corresponding costs, the raw materials and fund sources are also cited. A. Location The proposed business and processing site will be operated at Talomo River Calinan Davao City. We have seen that the place will be suitable for building a plant because it is away from residential areas. It is also accessible since it is along the road.

Figure 1.Talomo River Calinan, Davao City

B. Gantt Chart The chart below states the activities for making a business establishment before the normal operation will take place. Table 1 Gantt Chart
Activities 1.Organizational Planning 2. Acquisition of Funds 3. Find Business Location 4. Sign the Contract of Rent 5. Apply Business Permit Apr May Jun July Aug Sep

6. Purchase Furniture, Equipment, and Products 8. Finding Supplier of Raw materials 9. Hiring of Employees 10. Grand Opening

C. Plant Layout, Size and Production Schedule Figure 2. Plant Layout

Wash Room

Office

Finished Products

Sugar Storage Room

Cooling Area

Processing Room
Honey Storage Room

Packing Area Lime and Vit. C Storage Room Packing Materials

Figure 2. Sample Product

D.

Product Specification Natural Hair Remover is a brown sticky gel packed in a 400 ml canister. The

package includes ten (10) pieces wax strips. E. Product Preparations and Processes The process of production should be practiced very well and perfected to have a product with a high standard and quality that will be best suited for its consumers. All employees/workers must be trained proficiently and must be very knowledgeable on how the process of production goes as well as the proper use

of facilities and equipment. The business should also see to it that there are enough raw materials so as not to delay the production process. 1. Preparation of Raw Materials Measure four (4) parts of white sugar, one (1) part of water, one (1) part of lime juice, one (1) part of honey and one-eighth (1/8) part of vitamin C. Extract fresh juices from limes using the juicer. 2. Mixing and Heating Mix all the ingredients well. Heat the mixture and let it boil until it turns brown and sticky. Observe safety precautions. . F. List of Raw Materials, Machineries, Tools, and Equipment with Corresponding Costs

Raw Materials (Product 1)

Quantity 33 White Sugar kg.(1/3

Price

Amount

P40 kg./unit )

1,320.00

Lime 40kg. 20 800

Honey Total

2 gal

500

1000 P 3,120.00

PRODUCTION TOOLS Materials Quantit y Price per Piece Amount

975

2,975

Juicer Electric Stove 3 1,375 4,125

Scissors

17

51.00

3 Cutter

20

60.00

3 Hand Gloves 3

70.75

212.25

500

1,500

Cooking Pot Wooden ladle

50

150

TOTAL AMOUNT

9073.25

OFFICE EQUIPMENT Materials Qty Price per Piece Amount

Computer

20,990

41,980.00

Aircon

13,990

13,990.00

Total Amount FURNITURES AND FIXTURES Office Chair

P 55,970.00

700

2,100.00

5 Filing Cabinet

1,225

6,125.00

3 Office Table Sofa

450

1,350.00

2 Printer

1,000

2,000.00

3450

3,450.00

TOTAL OFFICE SUPPLIES Materials Quantity Price per Piece

P 15,025.00

Amount

Ballpen

4.50

22.50

Pencil

10

50.00

Folders

10

50.00

1 box Paper Clip

23

23.00

2 Stapler

25

50.00

Staple Wire

10 boxes

50.00

3 Ruler

15.00

4 ream Bond Papers

160

640.00

2 box Fastener

20

40.00

20 Envelope

140.00

2 Scissor

17

34.00

13.25

53.00

Scoth Tape

Tape Dispenser

51

102.00

2 Sharpener

10.00

1 Puncher

62

62.00

5 Eraser

5.50

27.50

2 Correction Fluid

23

46.00

5 Record Book

75

375.00

1,050

1,050.00

Emergency Lights

1 Fire Extingusher

1,000

1,000.00

Warning Labels

20

40.00

6 Trash Cans

55

330.00

2 Soft Broom

30

60.00

45

90.00

Dust Pan

1 Mop

120

120.00

46.75

93.50

Trash Bags

6 Rugs Telephone

30

180.00

1250

1250.00

Total G. Sources of Raw Materials

P 6003.50

The raw materials are mainly white sugar, honey and lime. White sugar can be purchased at Calinan Public Market. Honey and lime will be purchased from contracted individual vendors in Tamayong, Davao City. H. Waste Disposal Management The waste from the processing place will be identified as biodegradable. These wastes will be disposed in a landfill located at the back of the plant site. Non-biodegradable wastes will be recycled or sold to junkshops.