Abaca Corp Technical Aspect PDF

North Coastal Rd, Consolacion, 6001 Cebu
Email: abacacorporation@gmail.com
Tel. No.: 234-7877/222-6565
TECHNICAL
ASPECT
TECHNICAL ASPECT Page 48

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Scope of Technical Aspect
Executive Summary
Major Assumption
Introduction
Project Plant Site
Vicinity Map
Factors that are considered in Selecting Plant Site
Selection of Plant Site
Plant Site Evaluation
Plant Layout
Perspective View of Safety Evaluation and Aisle Ways Computation
Plant Capacity
Production Efficiency and Inventory
Description of the Product
Description of the Raw Materials
Availability of the Raw Materials
Main Suppliers of Direct Materials and Indirect Materials
Alternative Suppliers of Direct Materials and Indirect Suppliers
Economic Order Quantity
Reordering Period
Description of Machineries, Tools and Equipment, and other Facilities

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List of Personnel Protective Equipment
Process Description
Process Flow Chart
Production Gantt Chart
Flow Diagram
Waste Management
Safety Programs
Machine Preventive Maintenance Models
Material Handling
Material Control
Receiving and Stocking Procedures
Material Withdrawal Procedures
Quality Control Program
Manufacturing Corporation Quality Policy
Quality Assurance Checklist for Finished Goods
Production Facilities

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EXECUTIVE SUMMARY
 The chosen warehouse is located at North Coastal Rd, Consolacion, 6001 Cebu
having a total floor area of 616 square meters with a monthly rental PhP 98,400.
 The Abaca Corporation develops an eco-friendly and sustainable doormats from
the abaca rope.
 The main raw material of our product is Abaca.
 The Flow Process Chart is shown to better understand the processes of the
produced product.
 Quality control processes is used to check the incoming materials and finished
goods to have a quality product.

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MAJOR ASSUMPTION
 Abaca Corporation will rent a warehouse at North Coastal Rd, Consolacion, Cebu.
 Abaca Corporation listed three sites for plant; these three sites are evaluated in
order to determine the best plant location to situate the company. The two
warehouses are from Tingub, Mandaue City and the chosen warehouse is from
North Coastal Rd, Consolacion, Cebu.
 The company imposed 1 shift for the operation.
 There will be a 75% efficiency for the year 2019.
 All direct and indirect will be purchased by a supplier.
 The company will provide and produce quality products.
 Workers are trained on how to operate and maintain the machines and
equipment.

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INTRODUCTION
A business is considered technically and operationally feasible if it has the
necessary expertise, infrastructure and capital to develop, install, operate and maintain
the proposed system, establishing such a system, and the business will be able deliver
goods and services at a profit.
Technical feasibility study is a complete study of the project in terms of input,
processes, output, field, programs, and procedures. This will view the things that are
essential in starting a business. Considering some factors responds to the technicalities
and basic structure of the proposed study. It includes the tools and equipment, machines
and source of the supplies use in the proposed project. Structure plan, business plan,
promotion strategies, utilities, facilities, layout design and location are discusses also in
this chapter.
It is also discusses how the products are to be produced, when these products are
to be produced, how much will it cost to produce the products, where to produce the
products and what technology to be used.
It helps the Abaca Corporation to determine the proper technical requirements in
starting a new business on what particular strategies, plan, facilities and procedures
should be implemented.

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PROJECT PLANT SITE
Location:
Figure 2.1 – Plant Site Location
The proponents considered this plant site to become the Abaca Corporation
warehouse since it qualifies and has the qualities of the warehouse that we need. It is
located at North Coastal Rd. Consolacion , Cebu which is very accessible to hi-way and to
the public market. It has a floor area of 616 square meters which is just perfect for the
business and fit for production.

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VICINITY MAP
Source: https://www.google.com/maps
Figure 2.2 – Vicinity Map
Legend: Plant Site Location

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FACTORS CONSIDERED IN SELECTING PLANT SITE
The most important decision to make in starting a new business is to decide the
plant location wherein we can maximize the production in making the business. Abaca
Corporation considered various factor in selecting the plant location such as the nearness
of the market and to the suppliers of raw materials, ease of access to roads and housing
facilities.
The proponents decide to rent a warehouse which is less expensive than building
a new warehouse, because it is more advisable and practical when opening a new
business. We pick three prospect plant sites to be evaluated and assessed further prior to
final selection of warehouse. The three Plant Sites are as follows:
Plant Site 1
Location: Tingub, Mandaue City
Area: 531 square meters
Rental Cost: PhP 90,000 per month
Amenities: Comfort Room, Office,
Parking Area, Loading Bay
Source: https://www.lamudi.com.ph

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Plant Site 2
Location: North Coastal Rd, Consolacion,

6001 Cebu
Area: 616 square meters
Amenities: Comfort Room, Parking Area,

Security Guard
Plant Site 3
Location: Tingub, Mandaue City
Area: 1,020 square meters
Amenities: Comfort Room, Office,

Parking Area, Loading Bay
Source: https://www.lamudi.com.ph

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Choosing the right warehouse location can make all the difference in how
effective, efficient, and profitable our company is. Choosing a warehouse is a major
decision in Abaca Corporation Company’s ability to compete and effectively serve
customers.
Very Poor Poor Average Satisfactory Excellent

FACTORS
1 2 3 4 5
Php200,000 Php100,000
Php321,000 to Php 99,000
Rental Cost <Php450,000 to to
Php450,000 below
Php320,000 Php199,000
201 m2 300m2 501 m2
2
Floor Area <200m to to to > 800 m2
299 m2 500 m2 799 m2
Accessibility
(Roads, Hardly Accessible with Easily
Not Accessible Accessible
Highways & Accessible little problem Accessible
Traffic Flow)
Access to Hardly Accessible with Easily

Not Accessible Accessible
Market Accessible little problem Accessible
12.1 km 8.1km 5.1km

Distance from
<15km To to to ⦥5km
Ports
15 km 12km 8km
15km 12.1km 10.1km

Distance from
<18km To To To ⦥10km
Supplier
18km 15km 12km
Table 2.1 – Factors in Selecting Plant Site
When it comes to selecting a location, it is important to take the time and
consider all of the following criteria and then compare against all the alternatives being
chosen. Only after all the data has been compiled and analyzed can the final decision be
made.

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Below are the following factors considered by the Abaca Corporation in selecting
the most feasible plant location.
ALTERNATIVE PLANT SITE

FACTORS WEIGHT
1 2 3
Rental Cost 0.20 5 5 4

Floor Area 0.15 4 4 5
Accessibility (Roads,
Highways & Traffic 0.20 3 5 4
Flow)
Access to Market 0.15 4 5 3
Distance from Ports 0.10 5 4 5
Distance from
.20 4 4 4
Supplier
Weighted Sum 4.16 4.5 4.16
Table 2.2 – Factors in Selecting Plant Site Result
The factors stated above are carefully rated from 1-5 depending on the
satisfaction level it brings to the ideal company plant site. The ratings will be added and
the highest total score will be the chosen warehouse of the Abaca Corporation Company.

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Based on the evaluation, Plant Site 2 in North Coastal Rd, Consolacion, 6001 Cebu
will be the best warehouse for Abaca Corporation. Although Plant Site 1 has the highest
rate pertaining to access to Ports, but it has a low accessibility to roads and highways
which we consider also to be important in choosing a plant site. While Plant Site 2, has an
advantage when it comes to Accessibility to roads, highways & traffic flow and also in the
Accessibility to the market which is very important in distributing our products.
Source: https://articles.cyzerg.com/choosing-a-warehouse-location-7-critical-criteria-to-consider

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PLANT LAYOUT
Figure 2.3 – Plant Layout Floor Plan
Analysis:
The plant layout that is shown above, that is in sequence pattern with operations
so as the movement of raw materials and the worker position while doing job is in order.
Distance of the facilities is being emphasized to ensure the safety of the worker. And
layout is based on the sequence of operation from the first process until the product is
completed, so that raw material will flow in a progressive manner thus eliminating back
tracking and fast track the operation.

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PERSPECTIVE VIEW OF SAFETY EVALUATION
SAFETY PLANT LAYOUT
Warehouse
Figure 2.4 – Perspective View of Safety Evaluation

The key to accomplishing this is to perform a safety evaluation. Such an
evaluation reviews of the policies and procedures of a company’s safety program to
determine if they are working effectively and efficiently. These policies and procedures
include management leadership, worksite hazards analysis, hazard prevention and
control programs, accident and near miss investigations, employee involvement, safety

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and health training, use of personal protective equipment (PPE), and the emergency
response program. It’s crucial that your working environment complies with all building
regulations, to ensure the safety of your employees and the protection of your building.
Safety should always be a main concern, no matter what type of business you run
or how many people is employed.
Source: https://officeblindsandglazing.co.uk/fire-safety-workplace/
PLANT CAPACITY
Days/Month Months/Year Shift/Day Time Hours/Day

26 12 1 8:00-5:00 pm 7.5
Computation:
Doormat Size: 14” x 24” 1” = 0.0254m
14” (1.5 in) x 24” (1.5 in) = 21” x 36” = 756 sq. in
0.5334 m x 0 .9144 m = 0.48774096 sq. m/doormats
Creel to Tufting Machine (Continuous):
o Capacity Standard:
For Creeling = 30 creels; 395 meters per creel
30 creels x 395 meters/creel = 11,850 meters of creel/day

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For Tufting = 70 sq. m/hr
= 70 sq. m/hr
. 48774096 sq. m/doormat
= 143.52 doormat/hour
X 7.5 working hours
1,076 doormats/day
X 26 days
X 12 months
335,712 doormats/year
Tagging Machine:
o Capacity Standard:
27 pcs/min.
X 60 min. /hr.
1260 pcs/hr.
X 7.5 working hours
X 26 days/month
315,900 pcs/ month

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Total Operation cycle time:
Note:
Operation time:
o 26 days / month
o 12 months / year
o 1 shift per day
o 7.5hrs x 60 min. = 450 minutes
o 1 month operation = 1 shift / day x 7.5 hrs. /day x 26 days / month =165 hrs.
o 1076 doormats per day
o 1076doormats/day x 26 days / month = 27976 doormats/ month
o 27,976doormats/ month x 12 months / year = 335,712/ year
o With 100% efficiency

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PRODUCTION EFFICIENCY AND INVENTORY
Year 2019 2020 2021 2022 2023

Normal Capacity 335,712 335,712 335,712 335,712 335,712
Efficiency 75% 78% 83% 88% 91%
Production Capacity 251,784 261,855 278,641 295,427 305,498
Add: Beginning
0 21,100 22,634 23,191 23,698
Inventory
Goods Available
251,784 282,955 301,275 318,618 329,196
for Sale
Less: Ending
12,589 14,148 15,064 15,931 16,460
Inventory (5%)
Sales in Units 239,195 268,808 286,211 302,687 312,736
Table 2.3 – Production Efficiency and Inventory

Analysis:
The table above shows the production efficiency and number of goods produced
annually by the Abaca Corporation for the next 5 years. On the first year, the company
has 75% efficiency and increases annually by 3-5%. A factor that may cause it to increase
includes minimal idle time, effective supervision, and faster production, less defective
products.

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DESCRIPTION OF THE PRODUCT
The abaca plant is stoloniferous, meaning that the plant produces runners or shoots
along the ground that then root at each segment. Cutting and transplanting rooted runners is
the primary technique for creating new plants, since seed growth is substantially slower.
Abaca has a “false trunk” or pseudo stem about 6-15 inches (15-38 cm) in diameter. The leaf
stalks (petioles) are expanded at the base to form sheaths that are tightly wrapped together
to form the pseudo stem. There are from 12 to 25 leaves, dark green on the top and pale
green on the underside, sometimes with large brown patches. They are oblong in shape with
a deltoid base. They grow in succession. The petioles grow to at least 1 foot (30 cm) in length.
When the plant is mature, the flower stalks grow up inside the pseudo stem. The male flower
hast 5 petals, each about 1.5 inches (3.8 cm) long. The leaf sheaths contain the valuable fiber.
After harvesting, the coarse fibers range in length from 6-12 feet (180-370 cm) long. They are
composed primarily of cellulose, lignin, and pectin.
The fruit, which is inedible and is rarely seen as harvesting occurs before the plant
fruits, grows to about 2-3 inches (5.1-7.6 cm) in length and 1 inch (2.5 cm) in diameter. It has
black turbinate seeds that are 0.167 inches (0.42 cm) in diameter.
Source: https://en.m.wikipedia.org/wiki/Abaca

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DESCRIPTION OF THE RAW MATERIALS
The raw materials are the resources used by the different manufacturing company
that is used as an input to a production process for subsequent modification or
transformation into finished goods that is useful for its consumers. Below are the raw
materials used by Abaca Corporation.
RAW MATERIALS DESCRIPTION
Abaca rope is very durable, flexible and

resistant to salt water damage. It absorbs
water without weakening the fibre and is also
free from bacterial and fungal spores, and is
sustainably produced without environmental
damage. It has a lifespan of 8 years
Source:https://www.ropeandsplice.co.uk/page_2.html
ABACA ROPE
Liquid Latex is made using inexpensive

polymers, water and other additives
combined using the process of
polymerization. The main benefit of vinyl
matting products is the lower cost when
comparing top rubber matting products.
LIQUID LATEX
Table 2.4 – Description of Raw Materials

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The team chose abaca rope as the main component because it is durable. It is made
out of the fiber extracted from the leaf sheath around the trunk of the abaca plant which is
considered as the largest growing plant in the Philippines. Our doormats are made by tufting
the natural abaca hemp into liquid latex backing.
AVAILABILITY OF THE RAW MATERIALS
The availability of the raw material plays an important role in manufacturing or
primary production of goods. It requires quantity and quality at economical prices of the
materials, cost of raw materials may form the total cost of the finished product.
The proponents have a three alternative suppliers; one for the main supplier and two
for the alternative suppliers for the direct material and indirect material for making a
doormat. The Abaca Corporation’s supplier for its raw material, Abaca rope, is located locally
so it is easy to assure that the supplier can provide the enough volume of supply into our
company, while for the liquid latex we are supplied by a supplier from China. Thus the supplier
has committed that they will be able to provide the quantity of raw material that we need.
The other supplier for indirect materials are located in Lapu-Lapu City, Cebu City and
Mandaue City where they can deliver the enough volume of supply into our company.

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SUPPLIERS OF DIRECT MATERIALS AND INDIRECT MATERIALS
The Abaca Corporation decided to have one main supplier and 2 alternative suppliers
for the direct material and indirect material.
MAIN SUPPLIER OF DIRECT MATERIAL

ABACA ROPE
CONTACT SUPPLY
SUPPLIER ADDRESS PRICE
NUMBER CAPACITY
Emie & Mario Rope Masulog, Lapu-Lapu ₱1.88/ 15,000

09331890790
Industry City meter meters/month
LIQUID LATEX
Shenzhen
Guangdong, China +861376016430 ₱59.65/ 120
Zhengdasheng
(Mainland) 0 kg Tons/Month
Chemical Co., Ltd
Table 2.5 – Main Supplier (Direct Materials)
MAIN SUPPLIER OF INDIRECT MATERIAL

TAG
CONTACT SUPPLY
SUPPLIER ADDRESS PRICE
NUMBER CAPACITY
DMC Bldg., P.
Basubas St., Tipolo, (63-32)422- 800,000
DMC Busa Printer ₱.75/pcs
Mandaue City, Cebu 5814 / 346-0486 pcs/month
6014
Table 2.6 – Main Supplier (Indirect Materials)

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ALTERNATIVE SUPPLIER OF DIRECT MATERIAL

ABACA ROPE
Supplier Address Contact Number Price Supply
#505 C. Padilla
Interope
Street, 6000 Cebu (032)-345-3784 ₱75/meter 15,000 meters
Corporation
City
M.L. Quezon St.

M.A.P Enterprises (032)-333-2297 ₱95/meter 10, 000 meters
Brgy. Bagumbayan
LIQUID LATEX
Supplier Address Contact Number Price Supply Capacity
Tianyuan Hori
Guangdong, China +86 1354 250
Decoration Material ₱100/kg 600 Ton/Month
(Mainland) 1888
Co., Ltd
TCR Tai Chang Resin Foshan City, +86 0757 8771

₱95/kg 100 Ton/Month
Co., Ltd Guangdong China 7896
Table 2.7 – Alternative Supplier (Direct Materials)
ALTERNATIVE SUPPLIER OF INDIRECT MATERIAL

TAG
Supplier Address Contact Number Price Supply Capacity
Gen Maxilom Av Cebu

500,000
M-Graphics Inc. City Cebu +63(032)2563051 ₱5/pcs
pcs/month
City of Cebu City, Cebu
168 Fick Bldg. Lopez

100,000
My123.com Jaena, Subangdaku, (032) 328 0295 ₱8/pcs
pcs/month
Mandaue City, 6014
Table 2.8 – Alternative Supplier (Indirect Materials)

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ECONOMIC ORDER QUANTITY
Economic Order Quantity (EOQ) = √ 2DSH

D= Annual Material Consumption
S= Ordering Cost
H= Holding Cost
Abaca Rope =
√ 2 (3,666,646.464) (1.88)
(1.88) (0.001)
= 85,634.65
√
2(67,142.4) (2.386)
(2.386) (0.001)Liquid Latex =
= 11,588.13
RE-ORDERING POINT
Re-Ordering Point = SS + (D x LT)
D = Demand (Daily Consumption)
SS = Safety Stock
LT = Lead Time
Abaca Rope =9900 + (11,752.07 x 3)
= 45,156.24
Liquid Latex = 922.9 + (307.4 x 7)
= 3,074.7

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DESCRIPTION OF MACHINERIES, TOOLS AND
EQUIPMENT AND OTHER FACILITIES
Machineries Description Specification Unit Price Qty
Dimensions:
Length= 15 meters
Latex tufting machine is
Width = 2.5 meters
used to manufacture coir
Height= 2 meters ₱1,625,000 1 set
mats with PVC or Latex
backing.
Latex Tufting Width of mat: 200 cm
Machine Output: 70 m2/hour
Dimensions:
Length= 40 cm
Width= 22 cm
Use for tagging on towels,
Height= 12.5 cm
gloves, t shirts, car mats, ₱34,950 1 set
doormats, t shirts and so on.
Needle Length: 55mm
Tagging Machine Fit Thickness: 50 mm
and Below
Source: https://my.indiamart.com/
Table 2.9 – Machineries

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The Abaca Corporation made the office comfortable enough to employees and
provides all the necessary supplies that are needed to increase their productivity.
Below are the office supplies, furniture and fixtures that the Corporation must have:
OFFICE SUPPLIES
Office Supply Description Unit Price Quantity Total Amount
₱183.00 2 reams ₱366.00

Short Bondpaper Use for printing
documents, letters,
and other forms.
₱210.00 2 reams ₱420.00
Long Bondpaper
Use for writing. ₱8.00 20 pcs. ₱160.00

Ballpen
₱5.00 20 pcs. ₱100.00

Short Folder
Use for sorting files.
₱6.00 20 pcs. ₱120.00
Long Folder
Use for cutting various

₱50.00 5 pcs. ₱250.00
materials.
Scissors
Use to hold a roll of

tape that allows for a ₱75.00 2 pcs. ₱150.00
convenient cut-off.
Tape Dispenser

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A non-permanent
marker and uses an
₱42.50 3 pcs. ₱127.50
erasable ink used for
Whiteboard
Marker writing.
Used for joining pages

₱60.00 3 pcs. ₱180.00
or materials together.
Stapler
Used for packing and
sealing boxes and ₱50.00 5 pcs. ₱250.00
other materials.
Scotch Tape
Use for necessary

₱149.57 5 units ₱747.85
calculations.
Calculator
Use for keeping files in

₱55.00 10 pcs. ₱550.00
order.
Clear books
Use to correct
₱15.00 3 pcs. ₱45.00
mistakes.
Correction Tape
Used for removing

writing from paper or ₱20.00 1 pcs. ₱20.00
whiteboard.
Whiteboard Eraser
Table 2.10 – Office Supplies

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FURNITURE AND FIXTURE
Furniture and Fixture Description Price Quantity
To print text or picture of some

5,150 1 unit
necessary documents.
Printer
Use for posting some important

220 1 unit
announcements in the office.
Bulletin Board
Used for filing important

6,800 1 unit
documents.
Filing Cabinet
A chair used by the office employee. 1,999 11 units
Swivel Chair
A table used by the office employee. 2,850 11 units

Office Table
For controlling the temperature

5,499 3 unit
inside the office.
Air Conditioner
For the convenience of the

198 2 unit
employees.
Clock
To carry out an arbitrary set of
arithmetic or logical operations
11,499 6 units
automatically and for storage of
Computer Set
files.

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For the convenience of the

1,250 2 units
employees.
Water Dispenser
A board used during meetings. 1,000 1 unit
White board
For proper illumination and

412.57 10 sets
convenience to the employees
Fluorescent Light
For employees storage of their

9,800 1 pc.
personal belongings
Locker
Placed inside the office for the

1,250 1 set
employees to sit while waiting
Waiting Bench
Table 2.11 – Furniture and Fixtures SOURCES:

https://www.lazada.com.ph/
https://www.furnituremanila.com.ph/product-category/office/chairs/office-clerical-chairs/
https://shopee.ph/
https://www.nationalbookstore.com/back-to-school-shopping-guide/

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LIST OF PERSONAL PROTECTIVE EQUIPMENT
Personal Protective
Equipment Description Price Quantity
These gloves are specially designed
with a rubber to protect the hands ₱14.00/pair 10 pairs
of the user from any form of heat.

Rubber Gloves
This masks help prevent inhaling
dust or any small particles that are ₱50.00/ box 1 box
present during production.

Facial Masks
Table 2.12 – Personal Protective Equipment
Source: https://www.lazada.com.ph
Since rope is one of our main materials, we require employees to wear the Personal
Protective Equipment (PPE’s) to avoid health related issues. Rope has small fibers that the
employees might inhale that can cause cough, or worst, can trigger those who have asthma.
Asthma is a condition in which your airways narrow and swell and produce extra mucus
therefore can cause difficulty in breathing and shortness of breath. Also this may affect and
can interfere with the activities of the employees in the production area.

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TOOLS AND EQUIPMENT
Tools and Equipment Description Specification Price Qty
Small container cargo truck

5-10 ton delivery truck
Use to
Total mass : 6545 Kg
transport
Power : 103KW ₱513,000.00 1 set
goods to the
Cargo Box Size :
customers
5150x2300x2000mm
Delivery Truck Truck Dimension :
6995x2450x2950mm
The material
Dimension:
handling used
(LxWxH):30"x 19"x33"
to carry heavy
Load Capacity : 150 kg ₱2,600.00 1 set
materials
Castor :
within the
Platform Trolley 4" TPU Castor for easy
company
movement
Capacity: 150kg-2000kg
Storage for Size: 2000x450x1800mm
the finish Layers: 4 layers ₱750.00 3 set
goods
Wooden Rack Storage

Power Source: Hydraulic
Pump
Use to carry Max. Lifting Height:
materials 1600mm
₱18,750.00 1 set
from tufting Min Lifting Height:
to tagging 90mm
Manual Stacker Forklift Overall Dimension:
1340x850x2060mm
Structure:
Support pillar : 48 tubes
Used to hold Girder: 40x80 square tube
the raw Pitch: 250x250 ₱12,500.00 1 set
material Layer8
Creeling Tensioner: 2-post type
Table 2.13 – Tools and Equipment

Source:
https://www.alibaba.com/product-detail/Low-price-of-delivery-truck-
Isuzu_60772237024.html?spm=a2700.7724857.normalList.122.70cd73cdfLBsCP
https://www.olx.ph/item/bnew-platform-trolley-ID7eO9j.html?h=abc8e9f353

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PROCESS DESCRIPTION
START The Process Flow Chart in the left side
represents the workflow or processes in making
the doormats from abaca rope.

CREELING
Creeling. Yarns were put on a creel where they
are then fed into a machine (Tufting Machine)

TUFTING
that makes the mat itself. Abaca doormat
making can be done manually however; doing so

HEATING
may lessen the product output and are more
prone to errors, product inconsistencies, and

CUTTING
hazards.
Tufting. The Tufting Machine is no longer

TAGGING
weaving mats. Now the yarn being fed into the
machine is finely chopped and tufted into a

PACKING
liquid latex backing. The pile height is controlled
for achieving the required thickness (3.31cm) of

END the sheet.
Chart 2.1 – General Process Flow Chart

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START
Heating. The carpet-like material
CREELING made is then heated to solidify the
backing. The conveyor belt is Teflon

TUFTING
coated that is capable of
HEATING
withstanding temperature up to
250⁰C, so as to facilitate easy

CUTTING Manual Trimming
removal of the sheet after cooling

NO
before being stamped out into the

PASSED?
correct doormat size.
Cutting. Then at the end of

QUALITY CHECK
the Tufting machine therSe
is a circular blade mounted on a

PASSED?
traveler moves from one side to
the other to facilitate cutting of

TAGGING NO
doormat in pre-set lengths which

PACKING
is 14” x 24”.
END
SCRAPPED
(but can still be sold in a lower price.) Chart 2.2 –Process Flow Chart

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Tagging. This process is where the company logo is placed. After cutting, the finish product
will now proceed to the tagging area using a tagging machine. A tag containing few details
about the Abaca Corporation. By this we are able to tell our name to the market.
The tag is shown below.
4”
Indoor Doormat
 Traps Dirt
3  Cleans Feet 3”
Abaca Corporation
 Natural Fiber
14” x 24” – Single Door
abacacorporation@gmail.com
14”x24”
Figure 2.5 – Product Tag
Packing. The last part of production process. Preparing all finish products for transporting
or warehousing. A tag containing more details about the Abaca Corporation will be tagged
and packed.

Tel. No.: 234-7877/222-6565
FLOW PROCESS CHART
Chart 2.3 – Flow Process Chart
Analysis:
The chart above shows the flow of the material from the first process until storing it as
finish goods. The first process consumes 30 minutes since there are a total of 44 creels that
needs to place with the raw material which is the Abaca rope. The whole process takes 236
minutes to finish.

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PRODUCTION GANTT CHART
Chart 2.4 – Production Gantt Chart

Analysis:
The Production Gantt Chart illustrates the basic flow of all the operations involve in the process of making the product. The process
includes from getting the raw material until the process of taking the product for storage. The 1 st operation starts 08:05 and took 30
minutes before proceeding to the next process. The whole process will take a total of 210 minutes. The last process is where the
products are brought and transported to the storage of finish goods.

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FLOW DIAGRAM
Figure2.6 – Flow Diagram
Analysis:
The above figure shows the flow diagram of Abaca Corporation. The arrow represents
the sequence of every process and machines that are going to use from raw materials up to
finished products. It was also shown the production facilities such as the office, the male and
female comfort room and the raw materials storages as well as the long pallet rack for finished
products.

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WASTE MANAGEMENT
Waste management or Waste disposals are all the activities and actions required to
manage waste from its inception to its final disposal. This includes amongst other things
collection, transport, treatment and disposal of waste together with monitoring and regulation.
We, as a company, take the full responsibility of the waste we produced in doing our business.
By this, we took several measures and methods in handling our produced waste.
Disposal Methods are applied to achieve proper waste disposal.
Reduction
Involves a measure that is cutting back on the amount of trash we make.
Re-Use
Involves finding a new way to use trash so that we don't have to throw it out.
Recycling
Involves in using trash to remake new goods that can be used again.
Segregation of waste
The most important step in waste management is segregating waste according to its
level. There are several reasons to undertake waste segregation:
 Segregated waste is cheaper to dispose of because it does not require as much manual
or mechanical sorting as mixed waste

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 Effective segregation of wastes means that less waste goes to landfill which makes it
cheaper and better for people and the environment.
 Segregation reduces the amount of toxic substance release to the environment through
disposal or general waste.
Abaca Corporation provides a separate container for each type of waste for on-site collection
and it should be properly marked with “Recyclable”, “Non-Recyclable” and “Hazardous Waste”.
Waste Segregation should be implied since this can save the environment and help save the
business money. By this, we encourage the employees to be more concern about the proper
disposal of wastes and to reduce, re-use and recycle whenever possible.

Tel. No.: 234-7877/222-6565
SAFETY PROGRAM
The purpose of Safety Program in Abaca Corporation is to reduce accidental injury and
losses in the workplace and to provide a safe work environment for all our workers. The safety of
the personnel whether they are in office or in field of work is the responsibility of the
management. To achieve our goal in protecting our employees, the Abaca Corporation
established policies, procedures and policies about employee’s health and safety.
Safety Signage
Safety signs play a significant role in the management to alert employees to potential
hazards, simply provide directions, restricting smoking areas and restricting access or observing
unsafe environments.
Prohibition Signs
These signs should be used to convey “Do Not” type commands. The intrinsic features of
this sign are shown as a red circle with a white background, red band, and crossbar.

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Mandatory Signs
These signs should he used to indicate actions that must be carried out in order to
comply with statutory requirements. The intrinsic features of this sign are shown as a round
shape with white pictogram on blue background.
Warning Signs
These signs should be used to make people aware of a nearby danger. The intrinsic
features of this sign are shown as a triangular shape with black pictogram on yellow background
and black edging.

Tel. No.: 234-7877/222-6565
Fire Safety Signs
These signs are used to mark the location of fire fighting equipment and fire alarm
activation points.The intrinsic features of this sign are shown as a rectangular or circle shape
with white symbols or text.
Emergency Signs
These signs should he used to indicate escape routes, emergency exits, first aid
equipment, emergency showers and the like. The features of this sign are shown as a rectangular
or square shape with white pictogram or text on green background.

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MACHINE PREVENTIVE MAINTENANCE MODELS
Machine Preventive Maintenance is the care and servicing by personnel for the purpose
of maintaining equipment in satisfactory operating condition by providing for systematic
inspection, detection, and correction of incipient failures either before they occur or before they
develop into major defects. It tends to follow planned guidelines from time-to-time to prevent
equipment and machinery breakdown. The work carried out on equipment in order to avoid its
breakdown or malfunction.
The Machine & Equipment should be inspected and maintained regularly to ensure that
it is in still be used for its intended and achieve company goals and become efficient and
effective in production.
Abaca Corporation will provide specific instructions for each machine and equipment.
Preliminary maintenance of machines and equipment must be done before and after work by
the machine operator, machines will be maintained its productivity by the maintenance officers.
Maintenance, including tests, measurements, adjustments, parts replacement, and cleaning,
performed specifically to prevent faults from occurring. It is a regular and routine action taken
on equipment in order to prevent its breakdown. The immediate head is also responsible of
taking reports from the workers if the machined are not working properly, and report to the
maintenance officer to execute repairs and maintenance.

Tel. No.: 234-7877/222-6565
ABACA CORPORATION
MACHINE PREVENTIVE MAINTENANCE FORM
Checked by:
Date Checked:
PARTS YES NO FINDINGS RECOMMENDATION ACTION

TO TAKE
MATERIAL HANDLING
Material handling is the movement and storage of materials at the lowest possible cost
through the use of proper methods and equipment. Material handling involves sort-distance
movement within the confines of building between a building and a transportation vehicle.
Material handling is the movement and storage of material at the lowest possible cost through
the use of proper method and equipment. The primary objective of a material handling system is
to reduce the unit cost of production. The other subordinate objectives are:
1. Reduce manufacturing cycle time
2. Reduce delays, and damage

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3. Promote safety and improve working conditions
4. Maintain or improve product quality
5. Promote productivity
6. Promote increased use of facilities
7. Reduce tare weight
8. Control inventory
The proponents followed the objective of the material handling to reduce cost. The
proponents decide to create an efficient layout design where the storage of raw material is
adjacent to the production line. The extent use of material handling is carefully designed to suit
the application and which becomes cost effective. The efficient flow of material between the
activities of a production system is heavily dependent on the arrangement (or layout) of the
activities.
MATERIAL CONTROL
Material Control is a systematic control over purchasing, storing and consumption of
materials, so as maintain a regular and timely supply of materials, at the same time avoiding
overstocking. In every manufacturing concern materials constitute an important factor of
production. In simple words, material control refers to the various measures adopted to reduce
the amount of loss of materials at the time of receiving, storing and issuing the raw materials.

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Material control in practice is exercised through periodical records and reports relating to
purchase, receipt, inspection, storage and issuing direct and indirect materials. Proper control
over material can contribute substantially to the efficiency of a business.
Necessity and importance of material control:
In a productive undertaking the need of materials control arises on account of the following
reasons:
 For keeping the stock of raw materials within limits in the stores i.e., to avoid
overstocking and under stocking of raw materials, materials control is significant.
 It ensures proper storage of materials. For the proper preservation and safety of
materials, adequate storage facilities are to be provided. With the help of proper storing
of materials, quantity of materials as and when required can be issued to various jobs.
 For knowing proper cost of production, control over materials is indispensable.
 Certain techniques and methods are developed under the system of materials control
thereby ensuring optimum utilization of materials.
 In order to undertake continuous checking of materials, the necessity of a proper system
of materials control cannot be ignored.
 A well-managed system of materials control ensures the availability of different kinds of
materials without delay.

Tel. No.: 234-7877/222-6565
RECEIVING AND STOCKING PROCEDURES
A receiving procedure is needed to properly inspect all incoming goods, mark them
with tags, and record them as having been received.
Inspect Incoming Goods (Receiving Staff)
1. Upon receipt of a delivery, match the received items to the description stated on the
accompanying bill of lading, as well as the description on the related purchase order.
Major discrepancies can lead to rejection of the delivered goods.
2. If there is no authorizing purchase order and the purchasing manager does not issue
a waiver, reject the delivered goods.
3. Use a preprinted receiving checklist to inspect each delivery. Items likely requiring
review are the quantity received, comparison to a quality threshold, and the date
and time of receipt. Note any variances on the checklist. Initial the checklist when
the review is complete.
4. Sign a photocopy of the bill of lading to indicate that the delivery has been inspected
and is accepted.
Date:
INCOMING OF GOODS CHECKLIST
MATERIAL QTY FINDINGS
Delivered by: Received by

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Identify and Tag All Received Inventory (Receiving Staff)
1. Identify each item in a delivery and ensure that it is properly labeled with a bar
coded tag that includes the item number, quantity, and unit of measure. If there is
some uncertainty regarding which item number to use, consult with the senior
warehouse staff or purchasing department.
Log in Received Items (Receiving Staff)
1. Update the receiving log with the date and time of receipt of each delivery, as well as
the name of the shipper, supplier, purchase order number, and description of goods
received.
2. Send a copy of the signed bill of lading to the billing clerk in the accounting
department.
3. File the master copy of the billing of lading by date in the warehouse filing area.
Note: If a delivery arrives when a physical inventory count is being conducted, segregate the
goods in a clearly marked storage area, and do not record these items in the inventory
database until after the physical counting process is complete.

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LOG BOOK FOR RECEIVEDITEMS
Material Date Time Shipper Supplier P.O Number Findings
Received by:

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MATERIAL WITHDRAWAL PROCEDURES
Abaca Corporation gives easy procedures on withdrawing a material in the storage room
and can easily understand by the worker. The company made a material withdrawal slips. Abaca
Corporation made material withdrawal procedures for easy to pick the necessary material that
needed in the production. Abaca Corporation made a form or a slip to easy to identify the
necessary materials that needed in the production. To record the material that is be withdrawn
in the stock room.
These are the following procedures in withdrawing a material:
1. Fill-up the material withdrawal slip given:
 Requested by
 Date
 Invoice No.
 Material Code
 Material Description
 Quantity
 Unit of measure
2. Check the availability of the material in the stock room.
3. Validate the material withdrawal slip.
4. Pick the request material that needed.

Tel. No.: 234-7877/222-6565
QUALITY CONTROL PROGRAM
One major focus in the Quality Control Program is assuring that our company is adhering
to standards. The Abaca Corporation is committed to provide quality service and good quality
products to satisfy our customers through understanding everyone’s responsibility.
Ensuring the quality standards of our product and the services rendered to customers are
the keys to capture customer’s loyalty. Thus, it is necessary to implement strict quality inspection
for all the items in the chain. These standards will be the bases for our Quality Control In-charge
in maintaining the quality of our products.
Quality Check for Raw Materials
Abaca Rope
Since the abaca rope is the major component of our product, the Quality In-
charge for this Raw Material shall ensure that the abaca rope comply all the following conditions:
 The abaca rope to be delivered by the supplier must have a natural brown color
 Well cleaned fiber extracted from Abaca hemp
 The weight should be accurate according to the order specifications
 Yarn must not contain any unpleasant smell
Liquid Latex
The Liquid Latex also has a big contribution in the product. The Abaca Corporation must
also ensure the ordered container of Liquid Latex must comply all the following conditions:

Tel. No.: 234-7877/222-6565
 The weight of the container should be accurate according to the order
specifications
 Latex Liquid container should be properly sealed
MANUFACTURING CORPORATION QUALITY POLICY
Quality control is a process through which a business seeks to ensure that product quality
is maintained or improved and manufacturing errors are reduced or eliminated. Quality control
requires the business to create an environment in which both management and employees
strive for perfection. This is done by training personnel, creating benchmarks for product quality,
and testing products to check for statistically significant variations.
A major aspect of quality control is the establishment of well-defined controls. These
controls help standardize both production and reactions to quality issues. Limiting room for error
by specifying which production activities are to be completed by which personnel reduces the
chance that employees will be involved in tasks for which they do not have adequate training.

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Figure2.7 – Quality Policy
Our mission is to provide timely, cost effective, eco-friendly, and quality Abaca doormat
while maintaining and continually improving our quality management system. We achieve this
through understanding our clients’ priorities and risks and creating a relationship built on mutual
trust and respect while promoting growth, common values, safety and open communication
amongst our staff.

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The Quality Policy is defined and strongly driven by the following management principles and
behaviors:
 Build a mutually profitable relationship with our customers, ensuring their long-term
success, through the understanding of their needs and the needs of their customers as
well.
 Enhance the systematic research and use of best preventive practices at all levels and
ensure reliable risk management.
 Achieve our commitments for quality, cost, and schedule.
 Drive continual improvement and innovation based upon efficient business processes,
well-defined measurements, best practices, and customer surveys.
 Develop staff competencies, creativity, and accountability through appropriate
development programs and show strong management involvement and commitment.
Quality Objectives
The Abaca Corporation management ensures that the organization maintains a focus on
the customer as key to the success of their service provision. Our supervisors are responsible for
communicating and directing our employees so that all operations are performed with the
utmost regard for quality. All company employees and others on company worksites are
responsible for following recommended practices and procedures and informing supervisors of
any potential for an adverse impact to quality.

Tel. No.: 234-7877/222-6565
Quality Inspection Procedures of Raw Material
Product Inspections allow you to verify product quality on site at different stages of the
production process and prior to its dispatch. Inspecting the product when delivered leaves the
manufacturer’s premises an effective way of preventing quality problems.
The inspectors check the raw materials with the use of inspection checklists to ensure
that the quantity and quality of the raw materials pass the standards set by the company.
Sources: Quality Control http://www.investopedia.com/terms/q/quality-control.asp#ixzz4s57aYmUW

Tel. No.: 234-7877/222-6565
QUALITY ASSURANCE CHECKLIST FOR FINISHED GOODS
Prior packing the finished goods, the Quality Control Officer should ensure that the
following standards are met by checking the checklist provided:
Items above are considered as

counter check of the item since
Items to ensure: YES NO
Size of the Doormat -- 14’’x24’’
Thickness of the Doormat – 0.80’’
Quality of the Finished Product
Place the Company Logo
Items above are considered as counter check of the item since every process has undergone inspection already
After packing the products, the Quality Control Officer should also check these items
before delivery. We, the Abaca Corporation, wants to give only the best, so, we should maintain
our quality and always ensure that we can give the customers the satisfaction they expect or
more. So before delivery, these items should be checked (according to customer orders):
a. Quality of the packed item
b. Quantity of the product / volume
c. Destination and date of delivery of the item

Tel. No.: 234-7877/222-6565
PRODUCTION FACILITIES
OFFICE LAYOUT AREA
Top View:
TOP VIEW (3D)
The company has 64 square meter of office. It has space for the suppliers and filling
cabinet and every staff has cubicle. It has also a separate area for meetings and reception.

Tel. No.: 234-7877/222-6565
RAW MATERIAL STORAGE AREA
TOP VIEW (3D)
The raw material storage area has a total area of 41 square meters. It is designed for
maximum delivery of materials needed in production. It has also storage room for the Latex
supplies.

Tel. No.: 234-7877/222-6565
FINISHED PRODUCTS (LONG PALLET RACK) AREA
TOP VIEW (3D)
The long pallet rack has a total of 6 square meters. The long pallet rack has 55
compartments. It is designed for the finished products.
NOTE:
3D WAREHOUSE MADE BY SKETCH UP 2016.

Tel. No.: 234-7877/222-6565
CONCLUSION
Therefore, we can say that our company is feasible enough and is able to supply the
demand needed by the population. Abaca Corporation is able to come up with the capacity that
answers the demand as projected in the market. With the productivity and efficiency of the
company, we can conclude that we have enough ability to be able to compete in the local
market.

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North Coastal Rd, Consolacion, 6001 Cebu

Tel. No.: 234-7877/222-6565

TECHNICAL ASPECT Page 48

Tel. No.: 234-7877/222-6565

Scope of Technical Aspect

Project Plant Site

Factors that are considered in Selecting Plant Site

Selection of Plant Site

Plant Site Evaluation

Perspective View of Safety Evaluation and Aisle Ways Computation

Production Efficiency and Inventory

Description of the Product

Description of the Raw Materials

Availability of the Raw Materials

Main Suppliers of Direct Materials and Indirect Materials

Alternative Suppliers of Direct Materials and Indirect Suppliers

Economic Order Quantity

Description of Machineries, Tools and Equipment, and other Facilities

TECHNICAL ASPECT Page 49

Tel. No.: 234-7877/222-6565

List of Personnel Protective Equipment

Process Flow Chart

Production Gantt Chart

Machine Preventive Maintenance Models

Receiving and Stocking Procedures

Material Withdrawal Procedures

Quality Control Program

Manufacturing Corporation Quality Policy

Quality Assurance Checklist for Finished Goods

TECHNICAL ASPECT Page 50

Tel. No.: 234-7877/222-6565

 The Abaca Corporation develops an eco-friendly and sustainable doormats from

the abaca rope.

 The main raw material of our product is Abaca.

goods to have a quality product.

TECHNICAL ASPECT Page 51

Tel. No.: 234-7877/222-6565

North Coastal Rd, Consolacion, Cebu.

 The company imposed 1 shift for the operation.

 There will be a 75% efficiency for the year 2019.

 All direct and indirect will be purchased by a supplier.

 The company will provide and produce quality products.

TECHNICAL ASPECT Page 52

Tel. No.: 234-7877/222-6565

A business is considered technically and operationally feasible if it has the

goods and services at a profit.

Technical feasibility study is a complete study of the project in terms of input,

essential in starting a business. Considering some factors responds to the technicalities

products and what technology to be used.

It helps the Abaca Corporation to determine the proper technical requirements in

TECHNICAL ASPECT Page 53

Tel. No.: 234-7877/222-6565

PROJECT PLANT SITE

business and fit for production.

Tel. No.: 234-7877/222-6565

Legend: Plant Site Location

TECHNICAL ASPECT Page 55

Tel. No.: 234-7877/222-6565

FACTORS CONSIDERED IN SELECTING PLANT SITE

final selection of warehouse. The three Plant Sites are as follows:

Location: Tingub, Mandaue City

Area: 531 square meters

Rental Cost: PhP 90,000 per month