CHAPTER 5

PRODUCTION PLAN

METHOD
Process/Flow chart

Raw Materials

Boiling of
Water

Mixing of
ingredients

Cooling

Packaging

Display

Delivery

Production Process
1. Heat up a saucepan and add a cup of water. Allow the water to heat up, but without reaching boiling
point.
2. Once hot, empty the water into a container you don’t really use, since you are going to use it to dye
your hair with crepe paper.
3. Cut the crepe paper of the color of your choice into small pieces and add it to the container. Add a
good amount of paper to make the color strong, and only small amount of paper for a lighter, less
noticeable color.
4. Mix it with a spoon so that the ink defuses more quickly. When it is ready, leave the mixture to rest
for 15 to 20 minutes.
5. You can already pack it in a plastic bag or in a bottle, and seal.

Store Facility Layout

 Production Capacity per Day

*For our production capacity per day, we can create 120 small bottles of hair dye per day.

Number of Capacity per Weekly Monthly

Yearly Production
Employed Person Production Production
1 20 140 4200 50400
2 40 280 8400 100800
3 50 350 10500 126000
4 60 420 12600 151200
Total = 10 170 1190 35700 428400

 Raw Materials Availability

Our raw materials availability is easy to find and attainable in different areas, especially on the location
that we choose. Clean water, as one of our raw materials accessible anywhere. Crepe paper are
available everywhere. We can easily make our product because of the availability of our raw materials.
Direct Materials Quantity Unit Cost Total Cost
Crepe Paper 10 pcs. 7 70.00
Water 1 Galloon 12 12.00

Salt ½ kilo 6 3.00

 Indirect Materials Quantity Unit Cost Total Cost

Basin 5 pcs. 50 50.00

casserole 5 pcs. 160 800.00

Stove 1 pc. 1500 1500.00

Rubber band 100 pcs. 1 100.00

Man Power
 Labor Force:
Direct Labor- 4 personnel will be assigned in the production and manufacturing.
Indirect Labor- 4 personnel will be assigned in distributing the products.

 Cost of Labor Matrix (Monthly Salaries)

Number of Personnel Salary Shifts

4 manufacturers Php 100.00 Day and Night (6-hour)

4 distributors Php 80.00 Day and Night (6-hour)

 Labor Availability

We will hire those people who are currently living in Panabo City.

 Overhead cost (Salaries per worker)

The table below shows the total expenses including the salaries and miscellaneous per worker.
Expenses: Expenses Per Month Expenses Per Year
Salary
 Manufacturers Php 12,000 Php 144,000
 Distributors Php 9,600 Php 115,200
Miscellaneous Php 3,500 Php 42,000
Total Expenses Php 25,100 Php 301,200

 Summary of Production Costs

 The table below shows the summary of our annual Production Costs including the raw materials
and overhead cost.

Raw Materials Php 2,535.00

Overhead Cost Php 301,200.00

Total Php 303,735.00

 Operating Expenses
The operating expenses include salary, raw materials, light and power, rent and miscellaneous
expenses.
Expenses Expenses per Month Expenses per Year
Salaries Php 21,600.00 Php 2,592,000.00
Raw Materials Php 2,535.00 Php 30,420.00
Light and Power Php 1,000.00 Php 12, 000.00
Rent Php 5,000.00 Php 2,632,420.00