Plant Location

Upon the thorough and comparative analysis of the potential locations, the ideal plant site

for the project of Green CDI Manufacturing Corp. would be in Pagbilao, Quezon. The town is a

first class municipality in the province of Quezon. Primarily, considering the availability of raw

materials and accessibility to their sources, the location was chosen for the reason that most of

the vast lands of Pagbilao are mainly used for agricultural. These agricultural lands are mainly

allotted for coconuts. The majority of coconut-oil refineries and twenty virgin coconut-oil

producers that are potential large-scale supplier of coconut husks are compressed in the towns of

Lucena, Tayabas, Sariaya and Candelaria. Furthermore, Pagbilao is close to the towns of

Agdangan and Unisan, with 30-day to 45-day interval of harvest that leads to 86% of the farmers

operating below the minimum wage. Also, the location is near to the location of the target market

of CocoBoards.
 The production plant and main office of the company will be located at Brgy. Binahaan,

Pagbilao, Quezon which is ideal for such project. The plant area is wide enough to support the

housing of large volume of raw materials. The plant is also located where the manner of raising

coconut trees is possible.

G. Raw Materials and Supplies

  Raw Materials (Coconut Husks)

Coconut husk has high amount of lignin and cellulose, and that is why it has a high

calorific value of 18.62MJ/kg. This helps the raw material to bind into a hard board without the

addition of any damaging glue or binder.

The chemical composition of coconut husks consists of cellulose, lignin, pyroligneous

acid, gas, charcoal, tar, tannin, and potassium. Due to its strength the Cocoboard will have the

potential to be used for structural elements in buildings with natural anti-fungal properties and

burns three times slower than wood.

The twenty-two coconut-oil refineries and twenty virgin coconut-oil producers are

potential large-scale supplier of coconut husks are compressed in the towns of Lucena, Tayabas,

Sariaya and Candelaria, as well as the close towns of Agdangan and Unisan, where 50% of

coconut farmers are relying solely on coconut farming.

Raw Material Unit Price per unit Quantity Total Amount

(Php) (Php)
Coconut Husks metric ton 85
Total
*Computation is based on the first year of operating period

 Office Supplies

Office supplies are the materials that will be consumed within the office setting during the

normal business operations. These will be used specifically for the recording, filing, storing of

important data for the business, etc.

 Office Supplies Unit Price per unit Quantity Total Amount
(Php) (Php)
2-Ring Binder pcs 105.00 18 1,890.00
Clipboard pcs 44.00 5 220.00
Date Stamp pcs 275.00 12 3,300.00
Envelopes pcs 4.00 12 48.00
File Folder pcs 4.50 12 54.00
Glue (130g) pcs 42.00 6 252.00
Log Book pcs 69.75 5 348.75
Paperclips box 40.00 3 120.00
Paper Puncher pcs 128.00 6 768.00
Pen box 275.00 10 2,750.00
Pencil box 94.75 6 568.50
Permanent Marker box 330.00 6 1,980.00
Printer Ink Refill set 300.00 12 3,600.00
Record Book pcs 78.00 10 780.00
Scissors pcs 45.00 6 270.00
Scotch Tape pcs 15.00 18 270.00
Sharpener pcs 4.50 5 22.50
Signature Stamps pcs 200.00 12 2,400.00
Stamp Ink Pad pcs 65.00 6 390.00
Stamp Ink Pad Refill set 100.00 12 1,200.00
Stapler pcs 150.00 12 1,800.00
Staple Wire box 40.00 12 480.00
Whiteboard Marker box 573.00 10 5,730.00
Total 29,241.00
 Maintenance, Repair, and Operating Supplies

Maintenance, Repair, and Operating Supplies are supplies that the business will utilize in

the production process, that is not ultimately seen in the end products themselves. These are

supplies necessary to maintain the good state of the machines so interruption during the

production will be closely prevented.

MRO Supplies Unit Price per unit (Php) Quantity Total Amount (Php)
Cotton Gloves pcs 40.00 30 1,200.00
 Gaskets set 450.00 4 1,800.00
Lubricants gram 3,500.00 8 28,000.00
Repair Tools set 750.00 3 2,250.00
Total 33,250.00

 Cleaning Supplies

Cleaning supplies are the supplies used in order to keep the business facility clean. These

are also for the business to operate in the good and sanitary manner.

Cleaning Supplies Unit Price per unit Quantity Total Amount

(Php) (Php)
Air Freshener pcs 199.00 24 4,776.00
Bleach gallon 131.75 5 658.75
Broom & Dust Pan set 130.00 18 2,340.00
Coconut Broom Stick pcs 39.00 15 585.00
Feather Duster pcs 64.00 6 384.00
Mop pcs 260.00 6 1,560.00
Trash Bin pcs 130.00 12 1,560.00
Trash Bin 3-Compartment pcs 2,400.00 3 7,200.00
Trash Bag pack 120.00 5 600.00
Toilet Cleaning Tools set 306.00 12 3,672.00
Total 23,335.75

 Production Supplies

The table below shows the list and the cost of the production supplies to be used by the

business. The cost of the production supplies that are estimated for a yearly production rate has a

total of Php .

Production Supplies Unit Price per unit Quantity Total Amount

(Php) (Php)
Matte Sticker Paper pack 289.00
(100 sheets)
Total
*Computation is based on the first year of operating period
H. Utilities

 Electricity

The Green CDI Manufacturing Corporation will be powered by MERALCO. Electricity

will be used in operating machines and equipment, lighting and ventilation, and other electrical

devices. The electrical consumption of the machines is the summation of all the power rating

provided by the manufacturer. The rate provided by MERALCO is Php 4.50 per kwh.

 Gas and Fuels

Diesel will be used by the 6-wheeler elf closed van and 8-wheeler trucks for the

transportation of merchandise – both to deliver finished products to the retail hardware stores and

directly to the furniture & construction firms, and picking up of raw materials from the suppliers.

It will also be used in operating machines dring production process. Green CDI Manufacturing

Corporation diesel fuel will be provided by SHELL, with its current diesel price of Php 43.50 per

liter. The delivery trucks will deliver the Cocoboards to Lucena, Tayabas, Sariaya, Atimonan,

and Agdangan.

 Water

QMWD will provide water for the plant that will be allocated for the of cleaning the

machines and facilities, as well as sanitation use for the personnel. Water may also be used

during the production process. The current price of water from QMWD is Php. 20.5 per cubic

meter.

 Telecommunication

Telecommunication will be an important tool for Green CDI Manufacturing Corporation.

It will enable the company to communicate effectively with its customers and deliver high
standards of customer service. It will also allow employees to collaborate easily from wherever

they are located. Mobile telecommunication will give the opportunity to introduce more flexible

working by allowing employees to work efficiently from home. The introduction of smartphones

gives employees new levels of productivity and capability on the move. The business

telecommunication will be provided by PLDT with Google Wifi Plan of Php 4299.00 that has up

to 120Mbps unlimited, 3 Google Wifi points, Free landline with unlimited calls (unlimited calls

to up to 5 Smart/TNT/Sun numbers. Pre-registration is required).

The table below shows the list of utilities required in the first year operating period of the

Green CDI Manufacturing Corporation. Corresponding supplier for each utility is presented in

the table with monthly consumption and annual cost in peso.

Utilities Supplier Monthly Consumption Annual Consumption

(Php) (Php)
Electricity MERALCO
Gas and Fuel SHELL
Water MWD
Telecommunication PLDT
*Computation is based on the first year of operating period