Ateneo de Zamboanga University

College Department
School of Management and Accountancy

PRODUCTION PLAN

Freedom Commercial Printers

In Partial Fulfilment of the Requirements in

BUSMAN 106 A - Operations Mgt & TQM

Submitted to
DR. JOSEPHINE L. DAJUELA

Submitted by
Daniel Ray Cyrus C. Acla
Rhia G. Chua
Maria Reyna A. Francisco
Claire Lleonor Q. Pedregosa
Louise Mae O. Sieras

March 20, 2021

 ACKNOWLEDGEMENT

In every thing, give thanks:

for this is the will of God in Christ Jesus concerning you.

1 Thessalonians 5:18

We would like to express our warm and sincere gratitude to Ma’am Joy Dajuela for

giving the opportunity to do this production plan and providing invaluable guidance throughout

this.

We thank Mr. Cromwell Z. Ong who took time to answer all our questions despite the

hectic schedule. Throughout our research, we intend to recognize and appreciate his support.

We also thank Ms. Raizel Jane S. Rendal for having the patience and providing us the

materials needed in the production plan. Without her, we could have face difficulties in finding

the materials.

We are extremely grateful to our parents for their love, prayers, care and sacrifices to

educate us and to prepare us for our future. And also, for their moral encouragement, financial

assistance as well as their spiritual support in every path the researchers take.

And praises and thanks to God, the Almighty, for His showers of blessings throughout

our work to complete the production plan successfully, for giving wisdom, strength, support and

knowledge in exploring things, and to make this production plan possible.

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 TABLE OF CONTENTS

COVER PAGE ---------------------

ACKNOWLEDGEMENT --------------------- i

TABLE OF CONTENT --------------------- ii-iii

I. INTRODUCTION ---------------------

II. ENVIRONMENTAL ANALYSIS ---------------------

a. Economic Situation --------------------- 2
b. Available Resources --------------------- 4
c. Market --------------------- 5

III. INDUSTRY ANALYSIS ---------------------

a. Industry Structure --------------------- 6
b. Supply and Demand --------------------- 6
c. Competition --------------------- 7

d. Problems and Prospects --------------------- 8

e. Summary and Evaluation --------------------- 8

IV. COMPANY PROFILE ---------------------

a. Company History --------------------- 9
b. Goals and Objectives --------------------- 10
c. Organizational Structure --------------------- 11
d. Company Supply and Demand --------------------- 12
e. Company Available Resources --------------------- 13
f. Threats and Opportunities --------------------- 15
g. Plans and Strategies --------------------- 16

V. TECHNICAL ASPECT ---------------------

a. Product History --------------------- 18
b. Product Design --------------------- 19
c. Raw Materials Identification --------------------- 22
d. Plant Location Description and Location
Map --------------------- 24
e. Floor Plan drawn to scale --------------------- 25
f. Materials flow --------------------- 25

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 g. Production Schedule --------------------- 25
h. Production Volume --------------------- 26
i. Production Flow and Production Process --------------------- 27
j. Production Facilities and Equipment --------------------- 31
k. Manpower requirement --------------------- 33
l. Production Costs Estimates --------------------- 35

VI. ANALYSIS AND EVALUATION OF THE

PLAN ---------------------

VII. RECOMMENDATIONS ---------------------

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INTRODUCTION

During this Covid-19 pandemic, the state and performance of the operation of the
businesses have been compromised. The spread of the virus must be contained in no time,
and one of the procedures to be followed is to avoid transmitting the virus into other
things or people; therefore, the government declared a lock-down. Big scale businesses,
including those small scales, are neither exempted from the awfulness brought by this
health crisis because not only are people at the stake of getting infected by the virus, but
businesses are possibly hitting rock bottom because of the ceased operation. In every
entity's journey, where instances of failing are inevitable, they just have to find an edge,
try to look at things from a different angle, and turn their weaknesses into strengths. That
is what happens to Freedom Commercial Printers (FCP); amidst the darkness of this
crisis's rough experiences, they managed to find a loophole from a different angle and
prosper from it.
The Department of Education (DepEd) is getting ready for the elective
conveyance mode and online classes to adapt to new changes as proposed; it will be
somewhere in the month of August 2020. According to Philippine Information Agency,
Schools Division Superintendent Felisa B. Beriong, during the IATF Alerto sa COVID-
19 public interview, said that the education administrators, principals, and other school
authorities are getting ready for the modules, learning sheets, and different materials
required for elective conveyance mode and online classes, in the event that the opening of
the school year will move through by August as planned. She marked emphasis that the
readiness is as yet dependent upon the choice of the concerned government specialists,
taking contemplations the security of kids while benefiting as much as possible from their
opportunity to learn despite the fact that is remaining at home. She said that depending on
the review they have led, just a couple of schools are equipped for holding on the web
classes considering the fundamental factors like the accessibility of web association,
preparation of understudies, guardians, and home as the state of learning and accessibility
of PCs or cellphones. In this way, modules, learning sheets, and different materials are

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 also being prepared to investigate other elective conveyance modes to segregate different
students who have no admittance to internet learning.

Billions of Philippine money have been allotted to the budget for modules, and
Freedom Commercial Printers (FCP) was one of the many companies involved in
reproducing the following learning materials. Freedom Commercial Printers (FCP) is a
printing company headquartered in Zamboanga City. FCP is a complete commercial
printer catering to all types of printing products and services. They are equipped with the
capabilities of well technical expertise and experience gained over 41 years and two
generations of dedicated and focused work on paper and paperboard printing to produce
superior quality prints and at highly competitive prices. So, they easily understand
virtually any print product that consumers require. With this being said, FCP is now
considered of the few businesses that have overcome one's business entity's struggles
during the pandemic.

I. ENVIRONMENTAL ANALYSIS

a. Economic Situation

FCP is an organization that follows and operates strictly under the rules proposed
by the national government. Every step of their movement is strictly affected by the
decisions of the government. An example is now, during the intervention of the
escalation of the pandemic. The lockdown has minimized almost everything, the
flights, the operation, the leaving from the premises of people's houses, contact with
other people, etc. These instructions resulted in the limitation of staffing, limited
inter-regional flight, and limited production. There are times when they had to send
some of their workers from another region of the country. And they had to pay an
additional fee for the acquisition of the connecting flights instead of availing of a
direct one. They have staff from around the country with a crucial position in this
business entity. The government's decision like this affects their operation in so many
ways that it could significantly impact a political factor.

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 Legal factors like the people's employment, regulating the employees, complying
with legal documents cost the business expenses. According to Mr. Cromwell Ong,
CEO of FCP, the Employment regulation has factored in generating costs for the
company, but not as much. Labor regulation is more extensive. Employees' labor is
strictly according to the national standard minimum wage existing currently. And so
the entity is thinking about acquiring mechanical devices to compensate for the vast
amount allotted for the employee's labor. Only those parts of the production progress
can be accommodated by machinery; beyond that, the entity still needs a workforce
from employees.
As for the environmental factors affecting their environmental analysis, there's the
problem of waste disposal and incompetent electricity provider experienced in
Zamboanga. During 2015 almost 5000 tons of garbages is produced by the city of
Zamboanga. Over time the figures have never decreased. And so, the city is charging
businesses an amount of money for their garbage to be collected and managed by the
local authorities. For waste disposal, FCP pays about 70k per year for their waste to
be handled by the city government. The local authorities only collect their garbages
once a week to pick-up and after that one day in every week, nothing more. So, they
had to do the disposing all by themselves and set another amount of budget for their
excess garbage that the local garbage collectors do not handle. Apparently,
Zamboanga has a limited number of garbage trucks and garbage collectors to
accommodate to the needs of private businesses like FCP. As for the electricity, it is
unstable and unfavorable in their industry. Modern machines run by entire electronics
are not achieved. Fluctuation costed them burned circuit boards, and that was a huge
amount to be repaired, but they have no choice because the local electricity provider
just powers them. They bought huge UPS (costing 1million pesos) voltage to
stabilize. They also tried acquiring solar panels to pursue production even with the
disturbances like this. In conclusion, residing in a locality with incompetent
providers affects their operation and mainly the operation cost for their environmental
analysis. It is now more challenging to compete with competitors at the national level.

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b. Available Resources

FCP is versatile when it comes to its capabilities as an entity belonging to the

printing industry. According to the information handed to us, the entity has eight
categories for the different printing types they offer to their consumer. For
promotional printings, under it are posters, flyers and leaflets, brochures, and
calendars. There's the label, food boxes and other food packaging products, and
custom printed boxes for printings under the category of packages. For office &
business forms, the following are receipts and invoices, continuous business forms,
letterheads and stationaries, and office and company forms. For banners, they offer
printings for banners, signage, vehicle decals, store decals, tarpaulin. Next is for
publication, where magazines are included as well as newsletters, textbooks,
yearbooks, and annuals. For security forms, there are school diplomas and transcripts
of records and tickets. They also offer corporate giveaways like customization of
printing for umbrellas, bags, mugs, cps, ID lanyard, fans, ballpen, and USB/flash
drive. Lastly, for Garments manufacturing & printing, they print in customized polo
shirts, dri-fit shirts & jackets, promotional tees, jerseys & sportswear, and PE
uniforms. With this wide variety of printing, they will need a raw materials source
that will not constantly produce for them. They are exposed to foreign exchanges and
international interactions such as imports because, according to the CEO, most of the
materials they have and machinery are imported. In order to protect the business from
the unsteady exchange rates, they started acquiring derivatives from the bank or from
banks to protect them from it. One of the kinds of derivatives that they specifically
acquire is NDF. According to Akhilesh Gantia (2020), "non-deliverable forward
(NDF) is a cash-settled, and usually short-term, forward contract. The notional
amount is never exchanged, hence the name "non-deliverable." Two parties agree to
take opposite sides of a transaction for a set amount of money—at a contracted rate,
in the case of a currency NDF. This means that counterparties settle the difference

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 between contracted NDF price and the prevailing spot price. The profit or loss is
calculated on the notional amount of the agreement by taking the difference between
the agreed-upon rate and the spot rate at the time of settlement." Lastly, for the
research and development, this has been one of the factors affecting their available
resources because they try to purchase machines and innovations that can help boost
the business' productivity. Though the RAD budget is not as much because most of
the time, they only purchase innovations but are not focused on such. Instead, they
allow their budget for conferences with suppliers and producers and economically
viable innovations in Zamboanga.

c. Market

Freedom Commercial Printers (FCP) is located in the city of Zamboanga, serving

primarily on the clients of the same locality. FCP is one of the biggest companies that
provide printed materials in Zamboanga, but their exclusivity does not limit to one
city only. They also cater to the demand of other people from all around the country.
The wide variety of produced items widens the target market that they already have.
They attract organizations that set up parties, schools for their PE and reading
materials, publications, other big companies, DepEd, and many more. This explains
why their target market is nothing in specific but orders coming from the Philippines.
One of their most significant order during this pandemic are modules ordered by the
DepEd. According to the CEO, the budget for the modules alone for the 3rd quarter is
4 billion pesos. And one of their most fascinating, creative, and demanded products is
calendars. They produce both customize and standard calendar printed in different
types of paper, different sizes, and of course, different designs. The amount of
demand for this type of printing is enormous, that they need to prepare for the
following year's calendar start on this year's June. With the pieces of information and
deliberation, they cast the forecast of their following operation. They are a type of
entity that gives importance to collecting information to forecast the future of the
business. To them, forecasting is vital to keep them away from bankruptcy through

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 direct discussions in the same industry like booking agent and distributor; their sales
have continuously increased over time.

II. INDUSTRY ANALYSIS

a. Industry Structure

There are a lot of businesses that offer the same services, such as the Freedom
Commercial Printers Official nationwide. However, when the case is narrowed down
to regional, the company is one of the dominant players in this industry. It is because
of the same reason why the business is focusing on maintaining this role for more
upcoming years. Handling such big companies comes in complex and unique ways in
order to consistently stay on top of other competitors. In an exclusive interview with
the CEO, Mr. Cromwell Ong, it was even said and highlighted that in order for them
to outstand all possible competitors successfully, they do not give these companies
the opportunities and chances to develop new markets. This means that the Freedom
Commercial Printers Official focuses on covering the whole market to prevent the
other companies from growing. Another way to put down the intensity of
competition, Mr. Ong pointed out how diverse their company is to keep up with the
diversity of the industry. The company does not only specialize in publishing books
but also prints out labels, packages and etc. He said that since Zamboanga city is
small, businesses cannot enter with a focus strategy targeting only a specific segment
of the market which means that they have to embrace all the different products on
their field to have a bigger market to work on.

b. Supply and Demand

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 The only derivative of the supply and demand of Zamboanga is population. Just
like how it was explained by Mr. Ong that the city is small, it is also what will
determine where the company stands in the printing industry. The moment people
stop coming to the city, the market will already stop growing. This means that the
demand in Zamboanga is constant and that it will not grow spectacularly unless the
business goes out and caters to other regions. Nevertheless, the Freedom Commercial
Printers Official decided to increase their demand by having a bigger market through
domestic expansion in other cities outside of Zamboanga but avoiding places with a
lot of competitors. Supply, on the other hand, neither meets the surplus nor the deficit
end for the company. It was then explained by Mr. Ong that they are always
preparing an extra capacity to prevent a time wherein demand is very high and they
will not be able to cater to all customers. As a major printing commercial company, it
is important that they get to render services without any problems to their market.
However, there was one situation when the company was not able to cater to the
market because of a deficit in their supply which was caused by the pandemic that the
world is now undergoing. It was during the lockdown when raw materials were not
allowed to be exported and imported yet due to precautionary measures and the risk
that comes from COVID 19. The whole printing industry fell behind of their demand
which affected a lot of other important products such as food and grocery since labels
and packaging were not printed and delivered to their companies. But after this, the
Freedom Commercial Printers Official got back on its feet and is now catering to its
customers again. Overall, since the demand for Zamboanga is foreseeable, the supply
does not severely go beyond what they need to cover their market.

c. Competition

Competition, as explained by Mr. Ong, is an inevitable part of a business' life

whether the business people like it or not. And the only way to dominate is to outdo
other companies by absorbing the whole market, which is the nature of the free
market. To do this, the Freedom Commercial Printers Official utilizes the General
Corporate Strategy, which means that at all times with processes and procedures, the

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 company's goal is to be the lowest-cost producer. This is where the business uses the
best and most efficient materials at a lower value and adds the same mark up with
others which will make their product cheaper that will eventually cause them more
customers naturally. In addition to this, minimized cost simply means that more
people will choose their company over others, thus giving them more accessible
advantages in competition.

d. Problems and Prospects

The biggest enemy of the printing industry is technology. In today's generation,

modernization is taking place rapidly, and almost everything now is improving and
developing, leaving companies of such to fall behind of these changes. The only way
to keep up with this problem is to upgrade the machinery and other necessities of a
company. However, it is very expensive to do this, which might leave the business in
danger with a deficit in their budget. Currently, everything is already computerized,
and even if companies like Freedom Commercial Printers Official keep on upgrading,
they will still not be able to update to the fullest and have the latest technology.
Considering that printing machines that ideally must be changed when upgraded
versions are released cannot just be disposed of without any return on its investment.
This now causes businesses to still stick with these kinds of machinery to cater to the
market they cover.

e. Summary and Evaluation

Nowadays, the printing industry plays a vital role in the market. It contributes as
one of the commodities of businesses and companies, such as the ones that belong to
the food, advertising technology industry and etc. Especially in our current situation,
printing services became more significant considering that the government allotted a
budget for modules in order to provide for the learners. It is essential to cater to the

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 covered market with quality services to satisfy their needs. Freedom Commercial
Printers Official is dominant within printing the Zamboanga City market when it
comes to printings for their institution industry here in Zamboanga City. As a result,
the company is expected of a standard when it comes to their business. It is of the
same reason as to why the company is focusing on maintaining their role, and by
doing so, they have come out with a strategy to outdo their competitors through
general corporate strategy wherein the goal is to minimize cost and retain the same
markup for a cheaper value of the printed product for easier competition. This
strategy has worked to keep the company's profile and reputation as a top player in
their industry for 20 long years. In addition, the business also improves in the
technological aspect since technology keeps on developing so that they can provide
quality services for the customers. Furthermore, the business is now planning to work
for a bigger market, leading them to ideas of expansion in areas without many
competitors. Overall, the company succeeded in doing its best to outstand other
businesses and still be the number one choice.

III. COMPANY PROFILE

a. Company History

Freedom Commercial Printers (FCP) is a printing company headquartered in

Zamboanga City. It started on March 1978 which was still named as Mom & Pop
Shop since the founders of Freedom were the current owner’s father and mother. At
first, the owner’s father, which was a lawyer, has a manual printing machine that
requires excessive human power. It began when some people started to ask the father
to print their books and other reading materials as well. This triggered them and gave
them the idea to start a printing business which was very small back then. On May 27,
1988, Freedom Commercial Printers was now established as a Corporation and
celebrated its 43rd year in the printing industry on March 2021. FCP is a complete
commercial printer company which caters to all types of printing products and
services and now one of the most dominants printing service company not just in the

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 city but globally. It has the technical expertise and experience gained over 43 years
and 2 generations of dedicated and focused work on paper and paperboard printing to
produce prints in superior quality and at highly competitive prices. Now, FCP is still
expanding and competing worldwide.

b. Goals and Objectives

SMART stands for specific, measurable, attainable, and relevant and time bound. It is a
form of objective setting which allows managers and employees to create, track and
accomplish, short-and-long-term goals.

Specific:
To increase revenue by 3% and at the same time cutting down the expenditures by 4%.
Furthermore, to move to a more affordable premise and invest more in machineries and
equipment that will cut and reduce the operational costs by 5%.

Measurable:
To increase sales over the next 3 months by signing in 5 more potential clients.

Attainable:
To improve current customer relationships and promote the business through referrals,
networking and through social networks. This will help FCP find more leads and
therefore see to an increase in revenue for the business.

Relevant:

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To expand more by building more establishments around the country. This will in
increasing the sales of the business and therefore will give room to more growth of
profits.

Time-bound:
To increase profit by the end of the year 2021.

Vision:
We want to be the most competitive, complete and reliable supplier of printed
paper products in the Philippines.

Mission:
Our mission is to print and reproduce information, at the way possible way, that our
customers require. We do this by meticulously listening to their preferences and by
offering alternative solutions that will satisfy their need.

c. Organizational Structure

Freedom Commercial Printers have two main departments, the Sales department and
the Plantation department. The head of the Sales department is Mr. Cromwell Ong,
which is the Sales Manager while the head of the Plantation department is Mr. Lionel
Ong, which is the Plant manager.

a. The Sales department is headed by a Sales manager who is responsible for

meeting the sales targets of the organization through effective planning and
budgeting.

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b. The Plantation department is headed by a Plant manager who is in charge of a
manufacturing or production facility. He is actively involved in a plant's daily
operations as well as the company's long-range plans.

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d. Company Supply and Demand

Most likely to other businesses, supply and demand has been its main stream of
their industry. It may vary and change over time but it will always mainly determine
the product’s pricing. Basically, as observed in the process of studying over the
industry of Zamboanga, it has come to realization that balance is achieved between
what people are prepared to supply at a price and what people are willing to pay for
the product. As the price rises the quantity that will be supplied also rises and the
quantity demanded falls, and vice versa. Given that Zamboanga Peninsula doesn’t
have a unique product which can be entitled as their region’s own product; they’ve
been continuously developing their service and manpower towards an effective
system. Unlike some places that have shown a growing production in large amounts
of exports, there has only been a few exports of products in Zamboanga—this has
resulted in their economy relying on a buy and sell system rather than a trading
system. Stated by Mr. Cromwell Ong, as he was interviewed, the only factor that
increases their sales and maintain derivative is the population that as people continue
to visit the region, this is where the sales upraise making demand constant.

The willingness and preparedness of the consumers to purchase the product at

their provided market price is considered the demand—as when prices fall,
consumers’ increase their purchases and they buy less when prices rise. However, the
response to price changes depends on the type of product and the service they give.
Similarly, falls in price will not lead to major consumption increases so as part of it
they have been expanding their capacity to enable serving larger capacity and prevent
chances of overcapacity that will lead them to the risk of not being able to serve their
consumers within an advisable amount of time. They believe that expanding capacity
ahead of time will help them catch up and provide a better service that will leave
remarkable feedback from people. Nevertheless, the small falls in price that they
provide can cause a disproportionately large increase in sales, while small price
increases can lead to a big fall in sales.

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e. Company Available Resources

Freedom Commercial Printers’ available resources are as follows:

1. Machines, Equipment & Supplies
FCP uses the same machines, equipment and supplies in all of their products. But, here
are the list of machines, equipment, and supplies that are used specifically in the
production of calendars:
 Computers
 CTP Thermal Plates
 Thermal Platesetter (Luxel T-9500MII SA/ZA)
 Clean-out Unit (Azura C85)
 Calendar Printer Machine (SM72)
 Manual Clipper

2. Human Resources
The total number of employees in Freedom Printing Commercial is 67. From that
number, it is divided into different roles. Other employees have secondary jobs aside
from their primary jobs.
In the Sales department the human resources are the following:
 Sales Manager
 Plant Admin
 Human Resources
 Sales
 Accounting
 Drivers and Delivery
 Messenger/Collector
In the Plantation department the human resources are the following:
 Plant Manager
 Plant Maintenance
 Production Manager
 Traffic and Control

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  Universal Processor
 Warehouse and Materials
Different roles in the Pre-press process are as follows:
 Assistant
 Layout
Different roles in the Press process are as follows:
 Press 1 GTO & Invoice
 Press 2 Non-GTO & Non-Invoice
 Offset
Different roles in the Post-Press process are as follows:
 Cutter
 Warehouse
 Calendars
 Invoice
 Perforator
 Collator
 Binder
 Perfect Binder
 Non-Invoice
 General Finisher

f. Threats and Opportunities

The printing industry poses various opportunities, particularly brought by
technological and economic factors within the country, especially during the
pandemic. The population growth of the Philippines is an opportunity to the printing
industry as it extends the spectrum of possible customers for the industry. Hence, this
corresponds to a growth in the number of consumers that utilize printed materials.

Moreover, one of the key prospects for the printing industry is the advancement
of equipment and printing technologies. This is an opportunity for those who can

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supply technologically modern devices and machines providing more innovative
products and services to satisfy the evolving demands of customers. The technology
decreases production time while increasing efficiency, speed, and precision. The
utilization of modern machinery and various printing technologies has allowed
businesses to reduce costly waste. It also provides opportunities for small to medium-
scale enterprises that maintain a lean and highly computerized system to serve target
markets that need low-volume printed materials.
Along with technologies, the internet is also an opportunity for printing businesses. It
has become a valuable medium for printers to interact and engage with customers and
suppliers in order to market, sell, and distribute print and order supplies.
Though there are different opportunities to encounter, it also accumulates threats,
especially in the middle of a pandemic. Threats lie in different situations and
circumstances, including natural approaches. One factor affecting the printing
industry is the political factor— the limited movement of the people because of the
decision of the government to undergo quarantine. Because of this issue, they need to
follow protocols and need to conduct employment regulations. Though it did not cost
that much, it is still an impact of political factors. Another thing included by this
factor is the implementation of no regional flights since the business is based in
Zamboanga. It costs more to get the supplies of needed materials because it needs to
be transported to Manila before it arrives in Zamboanga. The last political factor is
the current exchange rate, in which Mr. Ong stated that they cannot do anything with
it, so they just go with the flow of currency.

The increase in the cost of consumable papers and ink as the inflation rate
increases today is one of the weaknesses of this kind of business. Costs keep
increasing today, which could lead to few customers because of high rates per
printing service. Another challenge is the emergence of high technologies and the
further migration of content to digital platforms. People may prefer soft copies rather
than printing their files because technologies offer more of what they can do in the
real aspect. Although technology provides opportunities, it can also affect the
industry in an adverse manner at the same time they allow a certain amount for new

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 inventions and innovations. Arguments have also reigned tackling competitions
regarding price wars and overcapacity as the significant challenges within the
industry and feared these forces could punish those firms that invest in innovative
solutions.

Environmental factors are the most costly for the printing industry because
waste disposal is really a problem. In order to get rid of wastes, Freedom Commercial
Printers pay 70,000 every year for waste disposal, which is not a bad decision.
However, they only pick a few wastes, so the company ends up disposing of their
own wastes. Another big challenge the company had faced over the years is
electricity, so they came up with another strategy that cost them almost a million
pesos. The company bought machinery called UPS so that whenever the circuit board
is broken, there is still power for electricity. They do not just pay to protect them from
bombs and bullets, but also from the electricity problem. Competitors are not only the
main reason for a business to make a good strategy; it is also about natural factors that
may affect the business.

g. Plans and Strategies

Every business is a risk. Once you enter the business world, there is no certain
thing as to the profitability and stability of your business. In this idea that every
business makes different plans and strategies to cope up with different challenges,
situations, demands or problems that their business might face. Business risk as
defined by Investopedia is the exposure a company or organization has to factor(s)
that will lower its profits or lead it to fail. Anything that threatens a company's ability
to achieve its financial goals is considered a business risk. Freedom Commercial
Printers will strive to supply an unparalleled experience and administrations that will
make it the essential advert for printing materials. This incorporates having the most
noteworthy quality items accessible for deal, a personalized printing format, broad
substance of intrigue, and a community for empowering the trade of data and ideas.
This arrangement will enormously influence the notoriety of the business in nearby

17
stores that provide the same administrations. This will result in broad word-of-mouth
showcasing that will drive activity.
As we interviewed Mr. Cromwell Ong, the chief executive officer of Freedom
Commercial Printers we learned different strategies from him that they are observing
in their business. The main strategy they are doing is Generic Corporate strategy that
he defined as lowering the overall production cost that in effect will bring their
customer a lower price than the others. Let us take for example that they spend only
PHP.10, 000 pesos while others spend PHP.15, 000 and all printing shops will apply a
10% markup. In this case their customer must have to pay only PHP.11, 000 while
PHP.16, 500 in the others. They believed that price and quality are one of those
powerful keys to attract customers and to dominate the market. Our layout and plan
will be eye-catching and cutting edge within the eyes of our group of onlookers to
draw in visitors and nearby clients. Freedom Commercial Printers will have a solid
branding message that will expand to all perspectives of the site and genuinely give
the finest quality of printed materials to our clients. The administrations will envelop
the modernity and distinguish proof of the supports and programming we speak to
and offer client value included features to construct a genuine interactive community.
One thing they did to incorporate their generic corporate strategy, is to buy direct
from the supplier. From buying to a reseller to buying directly from the manufacturer
is a big help for them to lower their production cost. With the issue or problem, when
they are going to buy raw material from the other country, dealing with the changes in
foreign exchange can hurt them financially, for order to them to continue to avail,
Freedom Commercial Printers will avail a certain instrument to secure their finance
and money and they can but the material for the lowest dollar exchange possible.
Another one is seizing the use of internet to make more customers, the
Company’s procedure is to advance, promote, and increment its brand value or
visibility through web journal showcasing and an assortment of promoting procedures
counting guerilla showcasing, online publicizing and advancements, on-going open
relations, and creating trade collusions and associations that will offer assistance drive
activity to the location. They are not complacent as to the current situation of their
business. Freedom Commercial Printers, always seek to adapt and always seek

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 solutions to different challenges in economies like this pandemic brought. As they are
in a printing business, one thing that really affected them is the transportation of their
printed materials in their different customers. As of now their decision’s primary
consideration is the government regulation.
Freedom Commercial Printers are aiming to construct our promoting foundation
in completely different areas, so that we will inevitably reach more clients with the
printing administrations advertising. We center on fulfilling desires of more to center
lesson inhabitants and companies found in the interior or exterior of Sta. Maria,
Zamboanga City. Our ongoing effort of building an elite management team with
backgrounds in managing and developing successful businesses within the chosen
field of business industry will be critical to our success.

IV. TECHNICAL ASPECT

a. Product History

Before modernization and technological advancements happened, people had a

hard time determining the date and managing their schedules and time. When Freedom
first started, its products are mostly just limited to books and academic materials.
However, demand of calendars started to knock its doors and gave rise to the birth of
production of calendars. They started to research about the machines and equipment
needed in order for them to be able to produce calendars. As the world evolves, FCP is
also evolving its machines, designs, and consumer range. They are one of the most
dominant printing companies here in the city and they are already able to reach foreign
consumers, suppliers, and manufacturers. Despite of the existence of technologies these
days, printed calendars are still in demand making FCP remain strong in the industry.

b. Product Design

Freedom Commercial Printers offer various designs in calendars. Here are the
following designs:

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 Executive Planner is a type of calendar usually found in offices and businesses
because of its classy and formal kind of design. There are two types of executive planner. The
first one is GP 88017 with 50 pounds of paper stock, 17” x 22” paper size, 20” x 3” Ad Space,
and with plastic holder & plastic cover features. The second one is GP 88012 and the difference
it has with the first one is the paper size which is 12” x 17” and the Ad Space which is 15” x
1.5”.

Commercial calendar consists of a
single picture, and multiple girds usually
spanning on more than one-page down
bounded by spring wire. They make
inexpensive and impressive presentation gift
to your loyal customers. There are three
types of sizes: namely, 22x34 and contains
only six pages with Legal Holidays/Tax
Reminders/Chinese Dates/Tides, 22x34
Form A which contains 12 pages with Legal
Holidays/Zodiac/Tax
Reminders/Horoscope/Chinese Dates/Tides,

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 and 22x34 Form B which contains 12 pages with Legal Holidays/Tax Reminders/Chinese
Dates/Tides.

Super Poster 909-912 and Mini Poster 509-512 is

both a type of calendar that helps the people identify
their zodiac signs. They are both similar in their
contents but differ in sizes and paper stock. In Super
Poster, the paper stock is Kromekote #130 lbs; paper
size is 19” x 30”; and its Ad space is 17.5” x 3.75”.
Mini Poster, on the other hand, uses Kromekote #120
lbs; paper size is 15’ x 21’; and Ad space is 14” x
3.75”.

GP 201-206 is a calendar that uses

religious designs that shows different special
holidays. For example, in Islam, it shows Islamic
holidays such as Al-Hijra, Eid ul-Adha, Eid ul-Fitr,
Prophet’s birthday, and Ramadan. Christian holidays,
on the other hand, are Advent, Christmas, Easter and

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Holy Week, and etc. It uses paper stock of Claycoat #12, paper size is 9” x 15”, and Ad space is
9” x 2.5”.

Goodluck Spiral is also a Chinese

calendar that uses Chinese zodiac, or
shengxiao which is a repeating cycle of 12
years, with each year being represented by
an animal and its reputed attributes. In
order, the 12 Chinese horoscope animals
are: Rat, Ox, Tiger, Rabbit, Dragon, Snake,
Horse, Goat, Monkey, Rooster, Dog, Pig. It
uses paper stock of Claycoat Board 18lbs,
paper size is 15” x 27”, and Ad space is 15”
x 3”.

c. Raw Materials Identification

The following are the raw materials used for the production of calendars:

CTP THERMAL PLATES

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 an imaging technology used in modern printing processes. In this technology, an
image created in a Desktop Publishing (DTP) application is output directly to a
printing plate.
 It has the ability to output text and images directly from a digital file to press plate
material, completely eliminating the time-consuming and often highly specialized
prepress work of creating film images, stripping them into flats, and then burning
plates. By simplifying platemaking, CTP has helped to make full-color work
easier to produce, and this in turn has increased customer demand for color.

PAPER
 The best paper to use is double-sided matte with a minimum weight of 170 gsm.
 Freedom Commercial Printers uses different types of paper depending on the
choice of its customer. The following options are:
a. 80# Gloss Text- Standard glossy paper stock, about as thick as a light
magazine cover. The shiny finish provides an excellent opaque base
for rich process color printing.
b. 70# Uncoated Text- This ultra-premium uncoated (non-glossy) white
stock is guaranteed safe for desktop laser printing. Many common
uncoated stocks are not optimized for 4-color printing, so this is
selected for best results. Feels thick and substantial in hands, and is the
best uncoated paper stock available for full-color printing.
c. 80# Dull/matte text- This stock is finely coated with a non-gloss
finish. It provides an excellent opaque base for easy to read, crisp
typography.
d. 100# Gloss Text- Similar to the 80# gloss text, but 25% thicker and
heavier, for a more substantial feeling piece.
e. 80# Gloss Cover- As a "cover" stock, this paper is stiff, about like a
postcard or baseball card. This stock is coated with a glossy finish,
making photographs and other images look beautiful.

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 f. 80# Dull/Matte Cover- This type of paper is a 9 pt cover stock with a
smooth, non-shiny coating. It is well suited for detailed, crisp printing
without sacrificing the ability to easily write on the paper. Often
selected with the 80# dull/matte text option for inside your catalog or
calendar piece.
g. Aqueous Coating- This clear coating is used to protect your printed
pieces. It provides a high-gloss surface that deters dirt and fingerprints.
Furthermore, it gives calendars a rich, high-end feel!
h. UV Coating- UV coating, often called liquid lamination, is a highly
protective, ultra-shiny gloss coating that is applied over aqueous
coating and then cure on a special machine using ultraviolet light. The
solvent-free UV coating provides an extremely hard finish that's
chemical and abrasion resistant. It makes details really pop! On deep
colors, it results in a stunning, almost wet appearance. Perfect when
you want a durable, environmentally-friendly piece with a richer, high-
end look and feel.

CLIPS
 This is essential for binding the calendars.

CMYK INKS
 CMYK refers to the four ink plates used in colored printing: cyan, magenta,
yellow, and key (black).
 CMYK printing is the standard in the printing press industry because it
minimizes costs and can be used for different item of print because of common
color way.

d. Plant Location Description and Location Map

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 The sales office of Freedom Commercial Printers is located at Unit A, Bangayan Bldg,
Veterans Avenue Maria Clara Lorenzo Lobregat Highway, Zamboanga City 7000, Philippines.
The sales office is in front of LAND Bank.

The main office of Freedom Commercial Printers is located at Gov. Ramos Avenue (near
EAAB Gate 2), Sta. Maria, Zamboanga City, Philippines.

25
e. Floor Plan drawn to scale

26
 f. Materials flow
Material flow refers to the movement of raw materials, work-in-progress inventory, and
finished goods through the manufacturing process - from inbound to outbound which includes
receiving goods from the manufacturing plan and focuses on bringing goods to end customers,
respectively. The material flow of Freedom Commercial Printers is that they order bulks of
supplies from their respective suppliers. After that, those supplies that will not be used at the
moment will be stored to the store room.

g. Production Schedule

Production is ongoing from Mondays to Sunday. The person assigned in the

warehouse and materials which is Mr. George Pimentel will check the available resources
in the storage room every day. The replenishment of the raw materials will now depend
on the demand of the consumers. The production schedule of the calendars starts mainly
every June in a year. This is the peak season of production of calendars. Different
operations and processes are gone through definite batches per day.
This is the projected production schedule in which would project the number of
productions it could do for the incoming three years.
Year Production Utilization Rate Projected
Capacity Production

27
 (per year) (Annually)
2021 400,000 70% 280,000
2022 400,000 80% 320,000
2023 400,000 90% 360,000

h. Production Volume

Production volume is the capacity with the:

1. Kinds of equipment used.

The equipment’s used in making of calendars are high quality which means that it
can be used in the long run. They buy equipment by bulks and not by piece.

2. Number of employees
The total number of employees in Freedom Printing Commercial is 67 including
the Chief Executive Officer and other employees who have secondary jobs.
3. Size of Area
Accordingly, the main office of Freedom Commercial Printers in Sta. Maria has
1,500 square meters which has office, machines, comfort rooms, lavatory, and store
room.

i. Production Flow and Production Process

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 Prepare all the Setup the calendar
materials and design on the
START machines to be
Computer-To-Plate
(CTP) software
used

Clean the plate using Print the calendar

Setup the plate in the the clean-out unit design guide through
printing machine (Azura C85) to remove the thermal
(SM72) plate residue platesetter

Prepare the blank Check the machine if Set the SM72 to the
papers and put them the inks are already desired number of
inside the paper ready and sufficient pages and start the
holder of the SM72 printing

Clip the calendar Manually assort the Collect the printed

through the manual pages by arranging it pages and put it on
clipper in order the assorting table

Pack the calendars and

Set aside the
arrange on the table;
calendars that are
ready for packing
ready for delivery or END
pick-up

PROCESS INPUT TIME LABOR/MACHINE

29
 Calendar Layout 10 minutes
Computer
Prepare all the Computer-To-
materials & Plate Software
machines to be used CTP Thermal Plates
Thermal Platesetter
(Luxel T-9500MII
SA/ZA)

Setup the calendar Computer-To- 5 minutes Computer

design on the Plate Software
Computer-To-Plate
(CTP) software

Print the calendar CTP Thermal Plate 10 minutes Thermal Platesetter (Luxel T-
design guide through 9500MII SA/ZA)
the thermal
platesetter

Clean the plate using CTP Thermal Plate 10 minutes Clean-out unit (Azura C85)
the clean-out unit (residuals removed)
(Azura C85) to
remove plate residue

Setup the plate in the CTP Thermal Plate 5 minutes Printing Machine (SM72)
printing machine (ready)
(SM72)

Prepare the blank Special Papers 5 minutes Printing Machine (SM72)

papers and put them
inside the paper
holder of the SM72

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Check the machine if Cyan-Magenta-Yellow- 5 minutes Printing Machine
the inks are ready and Black Inks (SM72)
sufficient

Set the SM72 to the SM72 Print Setup 5 minutes Printing Machine
desired number of (SM72)
pages and start the
printing

Collect the printed Employees 30 minutes – 1 hour

pages and put it on the Printed Calendar Pages
assorting table

Manually assort the Employees 30 minutes – 1 hour

pages by arranging it Printed Calendar Pages
in order

Clip the calendar Employees Manual Clipper

through the manual Printed Calendar Pages 30 minutes
clipper

Set aside the calendars Employees 30 minutes

that are ready for
packing

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Pack the calendars Employees 15 minutes
and arrange on the Box
table; ready for
delivery or pick-up

j. Production Facilities and Equipment

These are the following equipment used in producing calendars of Freedom

Commercial Printers
Machineries and Functions Sources Cost
Equipment
Computer Desktop  Processor: Intel Acer Php
23,000.00
Pentium
 Processor Speed:
3.0 GHZ
 RAM: 2 GB
 Chipset: Intel H81

Platesetter  Production Ecoographi Php

x 12,000.00
Capacity: 1000
PCS Per Year
 Material / Metal
Processed:
Stainless Steel
 Width/Length/Heig
ht:
1900*1200*1000m
m
Azura C85  Width: 200-950 Agfa Php
20,000.00
mm (7.9-37.0”)
 Length: 310 mm

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 (11.8”)
 Power consumption
EUR/US: 1350
Watt-hour
 Tool-free
maintenance
 Stand-alone unit or
online connection
with plate setter
 Chemistry-free
solution
 Swift refill and
simple cleaning
procedure
 Intelligent interface

SM72  Length: 10480mm Heidelberg Php

2,255,000.0
 Width: 2690 mm 0
 Height: 2130 mm
 Weight: 29490 kg
 Features: Stream
Feeder, Powder
Spray, Sheet
Decurler, Non-stop
feeder, In-line
coater, High pile
delivery
Manual Clipper  High processing HDX Php 730.00
speed and
consistency
 Full flexibility in

33
 choice of
application;
Fujifilm Pro-VN or
Agfa N94-VCF
 Productivity at 400
pph to match the
fastest CtP’s like
DotLine Vmax
 Completely clean
plates with
innovative Gum
Barrier

k. Manpower requirement

Before pandemic happened, Freedom Commercial Printers has 100 employees.

Now that there is pandemic, the Freedom Commercial Printers do not have any other
choice but to lay off some of its employees. Counting the employees including the Chief
Executive Officer, they have a total of 67 employees.
Regardless of the social problems that have arisen in Zamboanga City over the
past years, FCP has retained the same strategy of maintaining a strong competitive
emphasis oriented toward optimizing the capacity of its workers.
The employees of Freedom Commercial Printers have their own assigned task
regardless the product that they have to make.

Pre-Press:
 Layout Artist - collects and assembles type styles and images, such as
illustrations, photographs and drawings, to create a visual design in a computer or

34
 on paper. Also known as graphic designers who deliver ideas and information
through visual communications.

Press:
 Machine Technician- install, maintain, and repair mechanical equipment. They
are detail oriented and able to stay focused on delicate tasks while adhering to the
highest standards of safety.
 Press Operator- runs a printing press where they manage the production of
printed materials. They load the press with paper and ink and ensure that a high-
quality finished product is created. Press Operators work with strict deadlines and
keep to safety guidelines in the course of their work.

Post-Press:
 Binder- is responsible for finishing and binding books, magazines, brochures, and
calendars. Once the product comes off the printer, Binders cut, assemble, glue,
and stitch the papers together according to desired specifications.
 Driver/Delivery- delivering packages to customers in a timely manner and
picking up office purchases or other administrative needs. 
 Collector- collects payments and recovers overdue payments on
accounts. Collectors track debtors down by phone or mail and assist them to make
payments by negotiating repayment plans, and encouraging them to find
alternative payment solutions. 

l. Production Costs Estimates

The table below shows the cost of production of calendars depending on their specific
design.

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Executive Planner
Resources Used Quantity Price
Paper (GP 88017 & GP 88012) 1 rim Php 600.00
Ink 1 Liter 1,250.00
Clip 1 3.41

Energy Consumption P8 Per kwh 500.00

TOTAL COST INCURRED P2,353.41

Commercial Calendar
Resources Used Quantity Price
Paper (White Bond) 1 rim P268.00
Ink 1 Liter 1,250.00
Clip 1 3.41

Energy Consumption P8 Per kwh 500.00

TOTAL COST INCURRED P2, 021.41

Super Poster
Resources Used Quantity Price
Paper (Kromekote #130lbs) 1 rim P3,751.94
Ink 1 Liter 1,250.00
Clip 1 3.41

Energy Consumption P8 Per kwh 500.00

TOTAL COST P5,505.35
INCURRED

Mini Poster
Resources Used Quantity Price
Paper (Kromekote #120lbs) 1 rim P3,000.00
Ink 1 liter 1,250.00

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 Clip 1 3.41

Energy Consumption P8 per kwh 500.00

TOTAL COST P4,753.41
INCURRED

GP 201-206
Resources Used Quantity Price
Paper (Claycoat #12) 1 rim P3,600.00
Ink 1 liter 1,250.00
Clip 1 3.41

Energy Consumption P8 per kwh 500.00

TOTAL COST P5,353.41
INCURRED

Goodluck Spiral
Resources Used Quantity Price
Paper (Claycoat 18lbs) 1 rim P3,600.00
Ink 1 liter 1,250.00
Clip 1 3.41

Energy Consumption P8 per kwh 500.00

TOTAL COST P5,353.41
INCURRED

V. ANALYSIS AND EVALUATION OF THE PLAN

Freedom Commercial Printers (FCP) is a printing company in Zamboanga City

with a tagline, “Anything on paper, we print.” This business caters to all types of
printing services, which helps their company to develop and grow. Since FCP is one

37
of the biggest companies that provide printed materials in Zamboanga, they expand
their market and cater their services to the demand of other people from all around the
country. Hence, in order to meet the demand of the customers, the business had their
materials imported from other countries so they could get enough supply and be able
to provide a quality service to the customers. Although this process is costly, the
business has its way of protecting its company from the sudden change in the
exchange rates. As mentioned by the CEO, running a business in the printing industry
is challenging. Thus, one of the major problems would be technology. Through the
years, technologies keep on developing and becoming more expensive. That is why,
to solve this problem, the business should upgrade its machinery to keep up with the
changes and still be globally competitive. Furthermore, the production plan indicates
that lowering the overall production cost will bring their customer a lower price than
the other businesses. For example, the FCP spends only PHP.10, 000 pesos while
others spend PHP.15, 000 and all printing shops will apply a 10% markup. In this
case, their customer must have to pay only PHP.11, 000 while PHP.16, 500 in the
others. Even though the business used this strategy, they still ensure that they provide
quality over quantity products. This successfully worked for them in the past 20
years, where the company managed to maintain as a dominant company within the
printing industry. Over the time they spent on this kind of business, the CEO even
mentioned how they managed to cater to an even bigger market by keeping their
products diverse. The company did not only focus on a single specialization but rather
hired different people to be assigned in different areas for their customers such as the
City Government of Zamboanga, Department of Health, Zamboanga City Water
District, and many more big offices which chooses FCP over other same businesses in
the city. They have people that work in their company as publishers for printing
textbooks, and they offer services for a lot of other printed materials such as
calendars, product labels, packaging, advertising leaflets, posters, brochures,
postcards, etc. This is simply an advantage on their edge to outdo their competitors,
and the same strategy had been used even from before the now growing business of
FCP in the printing industry of the country.

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VI. RECOMMENDATIONS

No single item or service offered by an organization pulls into consideration each

buyer in a commercial center. Business entities should assemble plans not exclusively
to settle on their objective business sectors yet also to market to those customers to
impact them. Excessively extensive promoting burns through an organization's time
and cash by zeroing in endeavors on a populace with no interest in its item or
administration. An engaged showcasing plan and its progressing suggestions are
crucial for a company's success. This is the reason why one of the things that FCP
must be prioritizing is proposing a compelling promotional mix. Advertising is a
primary factor adding to how well buyers see an organization's adequacy—promoting
permits an organization to have wide-arriving interchanges with existing and likely
clients, regardless. A decent marking and publicizing message can amplify an
organization's deals, while a bombed promoting effort can make an item flop. When
you talk about the printing business, FCP is not well promoted to locals, that other
people are not aware that it exists. This is because of the limited advertisements
released. They could also use other ways like a sales promotion. This is one of the
more often utilized advancement types is deals advancements. Deals advancements
work to expand deals and better an organization's income. They can be accustomed to
focus on another item that is entering the market or drive extra interest to items ailing
in deals. For instance, FCP may offer coupons or free preliminaries to shoppers to
attempt another item or product in their list. Lastly, they could consider having
advertising intends to advance an entity's items, administrations, and brand by
spreading data by outsiders and the overall population. Especially in our generation
today, where platforms online can boost sales in no time, this is one ample
opportunity to widen their coverage. Organizations ought to associate with media
associations and stages to speak with huge and specialty crowds. The essential
advantage of PR is that, not usual for promoting; it is typically free. Since news
sources need content, they profit from the relationship also. Enormous companies
frequently pay for PR endeavors, yet promoting independent ventures ordinarily
incorporate paying for PR.

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