9

IV. Operational Plan

a. Capacity
Since our business is just starting in the industry, we will
be producing a minimum amount of our product. We will only
employ 3 laborers, 1 sales manager, 1 assistant manager, and 1
general manager, so on the early years; we will produce 3
chargers per day (an estimated amount of 936 chargers per
year). Our facility will be open from 8 am to 5 pm every Monday
to Saturday.
b. Productivity
The inventory held in a month will be our basis on how
many the chargers will be produced. We will be producing 78
chargers in the first month and we can slowly increase producing
in the succeeding months depending on how many chargers will
be selling on the first month.
c. Labor
For the first year of our business operations the 6
members of the business wanted to be hands-on in managing
the daily transactions of the business for us to be able to observe
properly the needed improvements in the operation of our
business. The business will be having a general manager,
assistant manager, sales manager and 3 laborers. As the years
pass, we plan on expanding our business and to add additional
employees in our business. The business also plans to have the
following labors for any incoming employees with the general
manager receiving P 14,200 a month exclusive overtime, sales
manager receiving P 9,400 a month exclusive overtime, assistant

10
manager receiving P 4,700 and for the laborers receiving P 3,500
a month. The employers would be working from Monday to
Saturday, 8 am to 5 pm (8 hours).
d. Quality Assurance
Engaging

employees

in

thoughtful

performance

assessment process can help boost an organizations employee

engagement, motivation, and retention rates. It also can help
align individuals, creating a better work environment and a
stronger organization.
Before selling our product to the market, we will be
conducting a Function and Performance Testing wherein the
electrical connections are carefully checked to make sure that
our product is functioning properly and is safe to use. We will
train our employees to check each of the components and
connections for shorts or breakage. We will also acquire a Quality
Assurance Certification.
e. Facilities
TOOLS

Soldering iron with stand It

supplies heat to melt soldering
lead so that it bonds
components together.

Soldering pump It will be

used to remove soldering lead

11
in case there is a mistake in
the circuit connection.

Mini Drill These will be used for

drilling a range of sizes of hole.

Cutter It will be used to cut the

aluminum sheet etc.

Grinder This will be used for

cutting small pieces of aluminum
and polishing the finished product.

Side Cutter This will be used to

grip, splice or cut wires, and strip
insulation.

12
Long nose pliers This will be used
grip small objects, reach awkward
places, holding wires, bend loops,
and attach wires.

Wire Stripper used to strip the

electrical insulation from electric
wires.

The following table consists of additional furniture and

fixtures that will be installed on the rented space.
FURNITURE/ FIXTURES

Quantity

Price

Chairs

10

P1 000.00

Tables (Long)

P3 000.00

Tables (Small)

P1 000.00

Exhaust Fans

P1 200.00

Cabinets

P2 000.00

Lamps

P750.00

Bulletin Board

P500.00

Fire Extinguishers

P3 000.00

First Aid Kit

P1 000.00

Cash Register

P10 000.00

CCTV

P10 000.00

13
Display Stand

P200.00

This are the list of office supplies that we will need.

OFFICE SUPPLIES

Quantity

Price

Laptops

P25 000.

Printer

P3000.00

Telephone

P2000.00

Stapler

P60.00

Overall Floor Plan

14

We allocated a portion for a storage area, manufacturing

area, a rest room, an office and the display area. Our office will
be used for accounting purposes, documentations, establishing
policies and to perform management and control functions for
our business. We decided to make the selling area spacious so
that our employees can teach our customers the proper usage
and handling of our products.
f. Location
Exothermatics will be located in 25 2nd road Quezon Hill,
Baguio City. Since we plan to merge the manufacturing area and
the shop itself, we prefer to occupy a larger space.

15

g. Improvements
In order to satisfy our customers, our business must
continually innovate and improve our product. To do this we are
thinking of expanding the possibility of our product to other
brands of smartphones. Additional features are also being
considered, like installing speaker and Taser; and adding a
memory card slot to the chargers. By continually giving the best
to our customers they will surely spread the word on how good
our products are and this will make our business known to the
country.

16
h. Maintenance
The Company will be incorporating the 5 S Approach in the
workplace.
The 5 S are as follows:
Sort: Sort out & separate that which is needed & not needed in
the area.
Straighten: Arrange items that are needed so that they are ready
& easy to use. Clearly identify locations for all items so that
anyone can find them & return them once the task is completed.
Shine: Clean the workplace & equipment on a regular basis in
order to maintain standards & identify defects.
Standardise: Revisit the first three of the 5S on a frequent basis
and confirm the condition of the Gemba using standard
procedures.
Sustain: Keep to the rules to maintain the standard & continue to
improve every day.
This methodology provides for an organized work-flow,
eliminates waste, and sets the work place in order. We believe
that by incorporating the 5S approach in manufacturing we will
turn our business into a lean operation that enables us to pass
the benefits of the process to our customers.
https://www.kaizen.com/knowledge-center/what-is-5s.html
i. Inventory
This portion of the operational plan specifies the quantity
and placement of stocked components that will be used in the

17
manufacturing of the chargers. Inventory helps determine
production requirements and ensure that the materials and
components are available to meet exact production demands at
all times.
LIST OF EQUIPMENT
Equipment

Cost/unit

Total Price

P520.00

P1560.00

P437.00

P1311.00

Mini Drill

P400.00

P1200.00

Cutter

P250.00

P250.00

Grinder

P1200.00

P1200.00

Side Cutter

P277.00

P277.00

Long Nose

P100.00

P300.00

P250.00

P750.00

Soldering Iron

Quantity

and Stand
Soldering
Pump

Pliers
Wire Stripper
Total

We decided to buy high quality equipment so the prices

are a bit high.
LIST OF COMPONENTS
Components

Quantity

Cost/unit

Total Price

Peltier

10

P350.00

P3500.00

Voltage Step-

10

P450.00

P4500.00

Up
Silicone / kilo

10

P70.00

P700.00

18
Mini USB Port

20

P14.00

P280.00

Mini USB

20

P168.00

P3360.00

Switch

20

P25.00

P500.00

Wire

50

P10.00

P500.00

P1641.00

P1641.00

10

P90.00

P900.00

Aluminum
Sheet
Lead
Total

These are the list of components in which we will need in

producing the chargers. Since the price of the components is
cheaper when in bulk, we decided to buy large quantities.

LIST OF OFFICE SUPPLIES

Office

Quantity

Cost/unit

Total Price

5 packs

P25.00

P125.00

Pencils

3 packs

P80.00

P240.00

Ball pens

5 packs

P100.00

P500.00

Coupon Bonds

5 rims

P160.00

P800.00

Supplies
Bullet of
stapler

j. Distribution
Prices of smart phones nowadays are getting lower in a
rapid

rate

because

of

the

competition,

availability,

and

19
technology changes; therefore, majority of the citys population
are able to acquire and use them. Because of the facts stated
above, the demand for smart phone chargers will also increase.
We will be able to promote our product by directly selling
it in our shop and by online order. We decided to open a store so
that the employees can be able to assist the costumers on how
to use the product. In the following years, the company aims to
expand the distribution to several retail shops around the
country.
k. Maintenance and Service
We believe that without happy and satisfied customers,
our business will not be successful. We ensure that our business
will give out the best service to each and every individual. To
achieve this we will assure that all the components and
equipment that we will use to build our products will be in good
condition and of high quality. We will also insure that our
employees will be well trained and well mannered.