CHAPTER 3

TECHNICAL STUDY
This study assesses the details of how the business intend to deliver a
product or service to customers. It is the logistical or tactical plan of how the
business will produce, store, deliver, and track its products or services. It
includes segments on necessary materials, labor and technology and structural
aspects of the business, and the means of shipping or transporting goods.

A. The Product

The Coco Plus Enterprise is a manufacturing business which creates a

hygienic product - sanitizer. It intends to be on top among the diverse
competitors and to be positioned in the consumers’ minds as against the
bewildering array of hygienic products from which to choose. It aims to attend
to the unmet needs of the consumers regarding sanitation whenever needed
at any possible time.

The use of hand sanitizer has increased with time. Especially with more
stress being paid on maintaining hygiene because of different viruses, there
has been an increase in the awareness of the use of hand sanitizers. The
Coco Plus Enterprise fully understands the consumer’s needs when it comes
to safety, health and ultimate satisfaction from the products. As a company
that have developed new product to satisfy their needs. This new innovation
known as the “Coco Hand Sanitizer” is designed to target the everyday
household consumer. By targeting households, the need for a healthy
environment will surely be filled. The product that the business has are
specifically targeted to each segment, because so many people will take
advantage of the products.

The original Coco Hand Sanitizer kills bacteria and viral germs on contact
allowing their customers to instantly disinfect their hands. The Coco Hand
Sanitizer consists of the same safe and effective antibacterial formula that the
original product includes, without having to continuously reapply hand lotions
and creams.
Each Coco Hand Sanitizer could be use to any keyboard or phone surface it
is placed on, using a non-residue leaving glue. As people touch the Coco
Hand Sanitizer, this specifically designed antibacterial formula the product is
composed of will break down. This disintegration is due to the constant
contact of germs and bacteria that eat away. None of the competitors have
created a product that is stationary and kills germs and bacteria on contact
over a long period of time. The outbreak of the pandemic, Coronavirus
(COVID-19) has made hand sanitizers a part of everyday life.

Coco Hand Sanitizer is an alcohol gel with a mild, non-residual ingredient for
fast, efficient and safe sanitizing without the use of water or towels. Coco
Hand Sanitizer effectively eliminates common germs and pathogens that may
cause illness. The gel quickly evaporates without leaving a sticky residue.

Features & benefits:

• Effective in preventing the growth of microorganisms
• Safe to use and does not damage or dry the skin
• Designed to be an economical sanitizing solution for daily application
Directions for use:
1. For best results, it is recommended to use the product after washing hands
with soap and water.
2. Apply Coco Sanitizer on the hand and skin and briskly rub the gel until it
evaporates.
Packaging:
Coco Hand Sanitizer is available in 500 ml bottle.
Precautions:
Keep out of reach of children. Avoid contact with eyes. If swallowed, feed milk
and call a physician immediately. Store in a cool dry place, tightly capped and
in upright position.
 Store Instructions:
Store below 30°C
Effectiveness:
The effectiveness of hand sanitizer depends on multiple factors, including the
manner in which the product is applied and whether the specific infectious agents
present on the person’s hands are susceptible to the active ingredient in the
product. In general Coco Hand Sanitizer, if rubbed thoroughly over finger and
hand surfaces for a period of 30 seconds, followed by complete air-drying, can
effectively reduce populations of bacteria, fungi, and some enveloped. Despite
the variability in effectiveness, Coco Hand sanitizer can help control the
transmission of infectious diseases, especially in settings where compliance with
hand washing is poor.

Product Specification

Flavor & color contributions

 Style: Alcohol-Liquid Form

 Flavor: Coconut with Lemon
 Color: Contributes transparent white

Characteristics

 Fragrance-free
 Water-free
 Antibacterial clean hand protection
 75% Alcohol
 Coco Hand Sanitizer kills 99.99 percent of most common illness-causing
germs in as little as 15 seconds.
 Coco Hand Sanitizer is refreshing, alcohol-based formula contains
moisturizers and Vitamin E to leave hands feeling soft and refreshed.
 As safe as regular soap and water, hand sanitizer comes in a pump bottle
so it is easy to dispense and apply.

Shelf Life / Expiration

 Coco Hand sanitizer is required to have an expiration date because it is

regulated by the FDA. The expiration of Coco Hand Sanitizer is three
 years (3) after the manufacturing date. Coco Hand sanitizer expires because
its alcohol content dissolves over time

Table 3.0
General Product Details:

Category Description

Product name Coco Hand Sanitizer

Manufacturer Coco Hand Sanitizer
Color Clear / White Transparent
Size 500 ml
Packaging Pump Bottle
Fragrance Scented
Alcohol Free No
Antibacterial Yes
Container Type Pump
Hypoallergenic No
Moisturizing Yes
Product Form Liquid

Table 3.0 shows the general product details of the product Coco Hand Sanitizer
that will be manufactured by Coco Plus Enterprise.
 Figure 3.0
Proposed Product

B. Manufacturing/Service Process

PREPARATION

COOKING

MIXING

PACKAGING

FINISHED

Figure 3.1
 STEP BY STEP PROCESS

Wash the Aloe Vera Cut into half Grate the aloe vera
using spoon.

Wait until it turns into oil. Stir the 250ml Place it to measuring
coconut milk into a cup.
low heat pan.

Strain the coconut out Strain the coconut oil Peel the lemon.
into strainer. using cloth.
Boil the 100ml of coconut Place the glass bowl Prepare a pan with
oil along with lemon skin. above the pan and add 1000ml of water.
the coconut oil along
with the lemon skin.

Blend and transfer it to Drop 25ml of coconut oil Pour the 250ml aloe vera
container. that was boiled with and 225ml alcohol to the
lemon. blender.
 C. Business Operation and Production Schedule

Table 3.0
Production Capacity

Volume (pcs)
Product Size
2021 2022 2023 2024 2025
Coco
500 ml 14,400 15,120 15,876 16,670 17,503
Sanitizer
Total 14,400 15,120 15,876 16,670 17,503

Table shows the projected production capacity (pcs) for the Coco Hand Sanitizer of the
business from year 2021-2025. As a projection by the proponents, the business will
increase their production as well as the sales by only five percent (5%) per year for the
product Coco Hand Sanitizer as an assumption of the proponents.

Table 3.1
Activity Schedule

Activity Time Duration

Buying of Materials 1 day

Product Making Process 4 hours

Packaging 2 hours

Sorting and Arrangement of Product 1 day

Storing of Products 1 day

The Coco Plus Enterprise will have five (5) main process for producing Coco
Hand Sanitizer, the first process is the buying raw materials that will take 1 day,
followed by 4-hour product making process. After then, packaging is the next
 process that will take 1 day. To make the product easy to serve, the assigned
person need store the product in correct storing place.

Table 3.2
Business Schedule

Department Time Schedule Day Total time Included

Schedule employees
Administrative 9:00 AM -5:00 PM Monday- 8 hours General
Saturday Manager
Production 9:00 AM -5:00 PM Monday- 8 hours Production
Saturday Officer
Selling 9:00 AM -5:00 PM Monday- 8 hours Marketing
Saturday Officer and
Sales Person

Table presents the business working schedule for the Beer Coco Plus Enterprise. The
usual operation of the said business is every 9:00 PM- 5:00 PM from Monday to
Saturday. The administrative and production will have similar time schedule from 9:00
AM -5:00 PM. While the utility and maintenance will be the first to work and first to out in
the office. Their schedule will be every Monday to Saturday
 D. Machinery and Equipment

Table 3.4
Production Equipment

Item Useful
Qty. Unit Cost Total Cost Depreciation
Description Life
Alcohol
2 100.00 200.00 5 40.00
Meter
5 Plastic Stirs 58.00 290.00 5 58.00
2 Kettle 2,500.00 5,000.00 5 1,000.00
Dispensing
2 1,200.00 2,400.00 5 480.00
Nozzle
Large
2 1,000.00 2,000.00 5 400.00
Funnel
Conical
2 250.00 500.00 5 100.00
Beaker
Glass
2 Stirring 150.00 300.00 5 60.00
Rods
2 Spatula 150.00 300.00 5 60.00
Graduated
2 150.00 300.00 5 60.00
Cylinder
2 Blender 1,450.00 2,900.00 5 580.00
Working
2 3,000.00 6,000.00 5 1,200.00
Table
TOTAL 20,190.00 4,038.00
Source: www.lazada.com
 Table 3.5
Office Equipment
Item Total Useful
Qty. Unit Cost Depreciation
Description Cost Life
2 Electric Fan 1,500.00 3,000.00 5 600.00
1 Mobile Phone 2,000.00 2,000.00 5 400.00
CCTV
2 1,499.00 2,998.00 5 599.60
Camera
1 Computer Set 15,000.00 15,000.00 5 3,000.00
TOTAL 20,000.00 4,599.60
Source: ARP Computer Store, Daet

Table 3.6
Store Equipment
Item Total Useful
Qty. Unit Cost Depreciation
Description Cost Life
Emergency
1 1,800.00 1,800.00 5 360.00
Cabinet
1 Generator 18,000.00 18,000.00 8 2,250.00
Emergency
1 1,175.00 1,175.00 5 235.00
Light
Fire
2 1,200.00 2,400.00 5 480.00
Extinguisher
TOTAL 23,375.00 3,325.00
Source: www.shopee.com

Table 3.7
Furniture and Fixture
Item Useful
Qty. Unit Cost Total Cost Depreciation
Description Life
1 Filing Cabinet 5,000.00 5,000.00 8 625.00
2 Office Table 1,500.00 3,000.00 5 600.00
 1 Office Chair 1,500.00 1,500.00 5 300.00
Table with
2 3,500 7,000.00 5 1,400.00
chairs
Total 16,500.00 2,925.00
Source: www.lazada.com

Table 3.8
Repairs and Maintenance
Particulars Monthly Cost Annual Cost
Repairs and Maintenance 500.00 6,000.00
Total 500.00 6,000.00
Source: Based on proponent’s assumption.

E. Plant Location

Coco Plus Enterprise will select a location where customer can access the store
easily. The proponents decided to place their business in F. Pimentel Avenue
since this location is visible for many travelers as it is one of the main roads in
the municipality of Daet. Coco Plus Enterprise will make sure that the chosen
location is the one where the cost of the product is kept to minimum, with large
market share, the least risk and the maximum social gain. It is the place of
 maximum advantage or which gives lowest unit cost of production and
distribution.

Source: Google Map

Vicinity Map
Figure 3.2
 Figure 3.3
Plant Location, F. Pimentel Avenue, Daet, Camarines Norte
F. Plant Layout
Coco Plus Enterprise will have correctly planned plant layout that provides an
ideal collaboration among raw materials, manufacturing processes, available
space, and the output. It will ensure the efficient utilization of all available space
and flexibility of arrangements and manufacturing operations, streamline the
movement of inventory in the entire manufacturing plant without hitches or
unnecessary delays, maintains adequate turnover of materials, reduces lead time
and cost of material handling, and also ensure the workers safety, comfort and
convenience. The proponents before choosing the building that will be used, they
observed that it is good plant layout design that facilitates the production
process, minimizes material handling, time and cost, and allows flexibility of
operations, easy production flow, makes economic use of the building, promotes
effective utilization of manpower, and provides for employee’s convenience,
safety, comfort at work, maximum exposure to natural light and ventilation.

Figure 3.4
Floor Plan
 Figure 3.5

Top View

Figure 3.6
Perspective View
G. Building and Facilities

The building that will be used by the proposed business is rented that is owned
by Camarines Norte State College management in their Income Generating
Project Building. The building will need a few renovations by customizing and
designing a business. The said business is located at IGP Building, CNSC Main
Campus, F. Pimentel Avenue in Barangay II-Pasig, Daet, Camarines Norte. The
business will pay a rented fee of P5, 000 per month in the proposed commercial
area. The business will have a two (2) months advance payment for the tenant.

Table 3.9
Rent Expense

Particular Area Space Building Type Monthly Cost Annual Cost

Rent 108 sqm Commercial 5,000.00 60,000.00

The business will pay a rented fee of P5, 000 per month with in the proposed
commercial area owned by CNSC management.

Table 3.10
Leasehold Improvement

Renovation Annual
Cost Useful life
Category Depreciation
Construction Works P 50,000 10 P 5,000.00
TOTAL P 50,000.00   P 5,000.00
Source: Based on the computation, estimation and inquiries of researchers.

Table 3.7 presents the total cost and the depreciation of building space
Improvement with the P 5,000.00. Based on the assumption, sixty percent (60%)
of the depreciation expense is allocated for factory overhead component.
FOH COMPONENTS: P 3,000.00
H. Raw Materials and Supply

For raw materials of Coco Hand Sanitizer, the business will organize their
current stock before bringing in a fresh stock. In the introductory stage,
manual inventory management system will be implemented. This will give
them the available stock count at the beginning of the day, and at the end of
the day. The assigned staff counts the remaining stock and the quality check
officer will recount if tallies it with the available physical stock.

The inventory of Coco Plus Enterprise consists of all the items or raw
materials in their production, the manual inventory management system helps
them to track each their ingredient used in the production. Their inventory
management systems allow them to control and organize every aspect of the
stock, maintains a smooth flow of supply and also helps to boost their overall
profit. As the volume of business grows in business, inventory management
becomes a crucial part of their operations.

Shelf life management is an integral part of raw materials management

project business. Each item in the inventory has a specified shelf life. For
each of the items in the inventory, the business can specify for how long can
be preserved and subsequently used, before getting spoiled. If due to slow
sales or some other reason, the items were not used during that period, the
business will be notified, along with the reason for the incident.
 Table 3.11
Raw Materials

Cost per Monthly

Particulars Unit Qty. Daily Cost Annual cost
unit cost

Alcohol ml 100 2.50 125.00 3,000.00 36,000.00

Hydrogen
ml 50 1.50 75.00 1,800.00 21,600.00
Peroxide

Glycerin ml 50 1.50 75.00 3,750.00 187,500.00

Denaturants ml 10 1.08 54.00 2,700.00 135,000.00

Coconut
ml 50 1.00 50.00 2,500.00 125,000.00
Milk
Lemon Kgs 2.5 0.80 40.00 2,000.00 100,000.00
Aloe Vera Kgs 1 0.90 45.00 2,250.00 112,500.00
Total 464.00 11,136.00 133,632.00

Raw materials for Coco Hand Sanitizer are expected to increase five percent (5%)
annually

I. Utilities

The utilities required for Coco Plus Enterprise will depend on the nature and size
of their operation. It requires for small business to provide workers and clients
with smooth and comfortable operations. It all depends on the particular needs of
the Coco Plus Enterprise business and the licensing requirements set by local
authorities. The business will have the following utilities to utilize the smooth
running of operation

From a health and safety perspective, it is important to have access to water for
first aid and basic hygiene and sanitation especially for the production area. The
proponents consider where their proposed business can find a water source
before they have decided on a business location. Since the business is projected
to be in a rural area, the business can get municipality’s water services provided
by Camarines Norte Water District- Prime Waters.
 The proponents of the Coco Plus Enterprise have an option to generate their own
electricity through solar panels, however, this is generally not an economic
choice, especially for the business that has just started. The business will rely on
electrical service provided by CANORECO in order to have an efficient power
service.

The business also plans to have advice and tips on how to minimize the cost of
electricity and ensure the appliances are as efficient as possible to the
professional experts since the power rate is continuously increasing. In actuality,
last 2019, the power consumption reached to 9.1417 kilowatt per hour. 
Table 3.12
Power Consumption

Usage Monthly Annual

Item Units Watts Rate
Daily (Hr) Cost Cost
Administrative and Selling
Emergency
1 50 1 9.1417 13.71 164.55
Light
Electric Fan 2 80 4 9.1417 175.52 2,106.25
CCTV
2 40 24 9.1417 526.56 6,318.74
Camera
Computer
1 80 8 9.1417 175.52 2,106.25
Set
Mobile
Phone 1 6 1 9.1417 1.65 19.75
Charge
Led Lights 5 9.1417 877.60 10,531.24
80 8
Fluorescent
1 9.1417 219.40 2,632.81
Light 100 8
Subtotal 1,989.96 23,879.42
Production Area
Exhaust Fan 1 10 8 9.1417 21.94 263.28
Incandescen
9.1417 175.52 2,106.25
t Light 2 80 4
Subtotal 197.46 2,369.52
Total 2,187.42 26,249.04

Table shows the power consumption of the business with the total amount of
P23,879.42. The allocated amount for the factory overhead is P2,369.52 for production.
 Table 3.13
Gas Consumption

Utilities Cost Consumption Monthly Annually

LPG
P1,200.00 2 refills monthly 1,200.00 14,200.00
Consumption
Total 1,200.00 14,200.00

Table shows the consumption of LPG for the Coco Hand Sanitizer production. It is
estimated to consume two (2) refills monthly with the total of 14,200.00 annually.

J. Waste Disposal

Coco Plus Enterprise will have waste management contractors to be able to help
the business identify the materials that needed to discard the most of. The
business will also implement regular waste audits, with separate recycling bins
for each type of waste. Measure these in relevant ways – either volume or weight
– and record the data ready to repeat the measurements in several months’ time,
so that the business can track your ongoing progress. This is beneficial not just in
helping the business to identify particular types of waste that can reduce the
levels of, but also making sure that the business have enough recycling bins of
each type – preventing staff from putting waste into the wrong bin when the right
one is full, and waste management companies from refusing to take away a
dangerously overfilled bin.
K. Production Cost

Table 3.14
Total Production Cost

Particulars Allocation Amount

Rate
Depreciation of Production Equipment 4,038.00
Maintenance and Repair 500.00
Rent Expense 60% 3,000.00
Leasehold Improvement 60% 3,000.00
Raw Materials 133,632.00
Power Consumption 2,369.52
Gas Consumption 30,400.00
Direct Labor 460,800.00
Remittances and Contribution 52,156.00
13th Month Pay 24,000.00
Freight in 11,520.00
Total 725,415.52

Table 3.16 shows the total production cost for manufacturing of the Coco Hand
Sanitizer of the business. There will be a rate allocation of 60% for rent and
leasehold improvement. The total production cost for the first year is 725,415.52.
L. Labor Requirements

Table 3.15
Employee wages

Position Rate per Number of Monthly Annually

Day Employees
Administrative and Selling
General Manager 350.00 1 P 8,400.00 P 100,800.00
Marketing Officer 310.00 1 7,320.00 87,840.00
Sales Person 310.00 1 7,320.00 87,840.00
Subtotal 660.00 2 23,040.00 276,480.00
Direct Labor
Production Officer 310.00 1 7,320.00 87,840.00
Laborer 310.00 2 14,640.00 175,680.00
Assistant Laborer 310.00 1 7,320.00 87,840.00
Subtotal 1,240.00 5 29,280.00 351,360.00
Total 1,900.00 7 52,320.00 627,840.00

Table shows the salary of each employees of Coco Plus Enterprise Product. The
business will apply the minimum rate as a starting salary rate except for General
Manager that has a P350.00 per day rate.
 Table 3.16
Employee Contributions

Position Number of SSS Philhealth Pag- EC Total Monthly Annual

Employees ibig Cost Cost

Administrative and Selling

General 1 589.30 87.50 100.00 10.00 786.80 786.80 9,441.60
Manager

Marketing 1 552.50 87.50 100.00 10.00 750.00 750.00 9,000.00

Officer

Sales Person 1 552.50 87.50 100.00 10.00 750.00 750.00 9,000.00

Subtotal 2,286.80 2,286.80 27,441.60

Production 1 552.50 87.50 100.00 10.00 750.00 750.00 9,000.00
Officer

Laborer 2 1,105 175 200.00 20.00 1,500.00 1,500.00 18,000.00

Assistant 1 552.50 87.50 100.00 10.00 750.00 750.00 9,000.00

Laborer
Subtotal 3,000.00 36,000.00

Total 5,286.80 63,441.60

Table shows the government premiums of Coco Plus Enterprise. The business
will apply the rate based on the bracket of their salary for SSS, PAG-IBIG and
PhilHealth.

Table 3.17
 13th month Pay Computation

Administrative and Selling

Position Number of Total Cost
Employees
General Manager 1 P 8,400.00
Marketing Officer 1 7,320.00
Sales Person 1 7,320.00
Sub total P 23,040.00
Direct Labor
Laborer 2 14,640.00
Assistant Laborer 1 7,320.00
Production Officer 1 7,320.00
Subtotal 29,280.00
Total P 52,320.00

The 13th month pay of employees of Coco Plus Enterprise will be based on their
annual salary divided to 12 months.

M. Other Expenses

Table 3.18
Freight In
 Description Daily Cost Monthly Cost Annual Cost
Transportation Expense 40.00 960.00 11,520.00

Note: Freight in will be expected to remain constant for next five (5) projected years.

Table 3.19
Cleaning Supplies

Item Annual
Qty. Unit Unit Cost Total Cost
Description Cost
2 Pcs Dust Feather 20.00 40.00 80.00
2 Pcs Apron 50.00 100.00 200.00
1 Pcs Scissors 25.00 25.00 50.00
2 Pcs Hairnet 10.00 20.00 40.00
1 Pcs Gloves 50.00 50.00 200.00
Coconut
1 Pcs 60.00 60.00 240.00
Broom
1 Pcs Broom 50.00 50.00 200.00
4 Pcs Rags 5.00 20.00 80.00
1 Pcs Floor Mop 120.00 120.00 240.00
2 Pcs Trash Can 100.00 200.00 600.00
Garbage Bag-
1 Pck 150.00 150.00 900.00
Large
4 Pcs Scotch Brite 40.00 120.00 240.00
Dishwashing
350 Ml 20.00 40.00 240.00
Liquid
2 Pcs Cleaning Soap 40.00 80.00 960.00
TOTAL 1,075.00 4,270.00
Source: Gemaglen Superstore

Table 3.20
Office Supplies
Qty. Unit Item Unit Cost Total Cost Annual
 Description Cost
1 Pcs Record Book P38.00 38.00 76.00
1 Pcs Columnar Book P 40.00 40.00 80.00
1 Box Pencil P 45.00 45.00 45.00
1 Box Ball pen P 60.00 60.00 60.00
1 Pcs Calculator P 450.00 450.00 450.00
1 Set Scissors P 30.00 30.00 60.00
1 Pck Plastic Bag P 50.00 50.00 200.00
TOTAL 713.00 971.00
Source: Goodluck Store
Office Supplies cost annually will remain constant for next five (5) years .

Table 3.21
Advertising and Promotion
Item Monthly Cost Annual Cost
Free Taste -- 5,000.00
Tarpaulin 400.00 4,800.00
Online Ads -- 1,000.00
Total 10,800.00

Advertising expense will remain constant for five (5) years.

Table 3.22
Permits and Licenses

Particulars 2021 2022 2023 2024 2025

Mayor’s Permit 10,250.00 10,557.50 10,874.23 11,200.45 11,536.47
Municipal License 1,200.00 1,236.00 1,273.08 1,311.27 1,350.61
Zoning Permit 300 300 300 300 300
Fire safety
100 100 100 100 100
clearance
Sanitary permit 100 100 100 100 100
 Employee’s Medical
600 600 600 600 600
Fee
Barangay
1,500.00 1,545.00 1,591.35 1,639.09 1,688.26
Clearance
Community Tax
500 515 530.45 546.36 562.75
Certificate

DTI promotional
515 530.45 546.36 562.75 579.64
Permit

Bureau of Internal
500 515 530.45 546.36 562.755
Revenue

Business Plate 200 309 318.27 327.82 337.65

Bureau of Food and

300 300 300 300 300
Drug Permit

Documentary stamp 15 15 15 15 15
SEC Registration 1,250.00 - - - -
TOTAL 17,330.00 16,622.95 17,079.19 17,549.10 18,033.14
Source: www.ppp.gov.ph and inquiries of the proponents