TECHNICAL ASPECT

3.1 PRODUCT

Optimal water intake is essential for our health. Purified water is water that has been
filtered or processed to remove impurities like chemicals and other contaminants. Water
purification removes contaminants that may remain in drinking water and improves water quality
and taste. Our product is very beneficial to health aspect since this type of procedure can remove
bacteria and harmful viruses so it won’t lead to some diseases such as cholera, typhoid, diarrhea
and sometimes cancer too.

3.2 PROCESS

Water purification is the process by which undesired chemical compounds, organic and
inorganic materials, and biological contaminants are removed from water.

FIGURE 1. Purified Water Production Process Flow Diagram

Process (Water filtration and Purification system)

1 unit — Multimedia sediment process

Stage 1 — The water first passes through the 1st stage which makes up of a course gravel that
traps solid particles of about 100 micron
Stage 2 — Consists of sand filters that removes sediment of 50 micron ratings

Stage 3 — Consists of fine sand that eliminates solid particles of 25 micron

Stage 4 — Consists of fine clear slit that eliminates solid particles down to 5 micron

2nd unit — Multimedia carbon process

Stage 5 — Makes use of a lignite carbon that removes foul taste and odor

Stage 6 — Makes use of bituminous carbon that eliminates yellowish and brownish discoloration
brought by inorganic contaminants

Stage 7 — Makes use of granular activated carbon (GAC) as the last multimedia carbon stage.
This stage is where the water undergoes longer contact time with the carbon to eliminate other
contaminants that might cause foul smell or taste

3rd unit — Water conditioning and softening process

Stage 8 — Makes use of resin beads that attract mineral contents that convert hard water to soft
water

Stage 9 — Makes use of ion exchange beads to condition water by extracting the organic and
inorganic chemicals present in the water

Stage 10 — Makes use of another carbon that eliminates any ferrous iron (dissolved iron) in
water

Stage 11 — Makes use of fine gravel that serves as a sieve which eliminates any residue that
might come out during regeneration time. This is a cleansing agent.

4th unit — Ultra micron process

Stage 12 — Consists of a one (1) big blue housing that includes 1 micron cartridge that
eliminates any microscopic residue that might go to the reverse osmosis membrane. This stage
stands as a protection for the membrane against premature clogging

5th unit — Reverse osmosis

Stage 13 — It is the most important system in any water filtration and purification process. This
makes use of reverse osmosis equipment which has semi-permeable membrane that only allows
pure water to pass through and pushes the impure water out of the system to the reverse side or
the reject drain line.

6th unit — Polishing process

Stage 14 — Includes one (1) big blue housing that consists of a carbon cartridge that serves as a
polishing stage to make the water crystal clear and shiny

7th unit — Anti-microbial process

Stage 15 — This stage eliminates cyst microorganism that has a micron rating of 1 and has a
very thick cell wall where UV light sometimes cannot penetrate; however a micron rating of 0.5
will eliminate such kind of microorganisms. Cyst causes diarrhea and gastro enteritis.

8th unit — Water sterilization process

Stage 16 — This last and final stage is the second most important system in a water filtration and
purification system. This is the stage that kills all microorganisms and other diseases causing
bacteria from infiltrating into the product water, thereby assuring safe and pure water.

3.3 TOOLS AND EQUIPMENT

The table shows the existing and to be acquired tools and equipment of the group. It
includes the quantity, estimated/remaining useful life, and the annual depreciation expense.

PARTICULA Total Book Estimated Depreciation

Quantity Book Value
RS Value Useful Life Expense
Water Tank 2 150,000 300,000 10 30,000
Booster Pump 1 10,000 10,000 10 1000
High-Pressure
1 6,000 6,000 10 600
Pump
Silica Sand
1 50,000 50,000 10 5,000
Filter
Activate
1 50,000 50,000 10 5,000
Carbon Filter
Sodium
1 50,000 50,000 10 5,000
Softener
 Precision
1 30,000 30,000 10 3,000
Filter
Engine 1 100,000 100,000 10 10,000
Ozone
1 50,000 50,000 10 5,000
Generator
Oxidation
2 20,000 40,000 10 4,000
Tower
Bottle Filling
2 15,000 30,000 10 3,000
Machine
TOTAL Php531,000 Php716,000 Php71,600
TABLE 8. TO-BE ACQUIRED ASSETS

3.4 CAPACITY

Over the years, as the demand for cleaner water becomes higher, the price of household
water purifiers has become prohibitive. Water refilling stations offer a cheaper and more
convenient solution to the public’s drinking water needs than bottled water or the use of
household filters. Typical water refilling station can produce 25,200 to 25,600 gallons of purified
water per annum.

3.5 PROJECT LOCATION

The project is strategically located at Purok 3, Barangay Halian, Del Carmen, Surigao
Del Norte. The location is center of the area.

3.6 RAW MATERIALS

The only raw material involved is unpurified water. There will be no cost for the said
material since the source of water is free.

3.7 LABOR

Two workers will be tasked in refilling and cleaning of containers. The owner will be the
one overseeing the production and will help in the operation whenever needed. The delivery
men/driver will be the one assigned for the delivery of the water galloons.

LABOR Cost
 Particulars Daily Rate Year 1 Year 2 Year 3
Cashier 250 91,250 91,250 91,250
Worker 300 66,750 66,750 66,750

Technical Asst. 250 91,250 91,250 91,250

Driver/Delivery Man 200 73,000 73,000 73,000

TOTAL Php328,500 Php328,500 Php328,500

TABLE 9. TOTAL LABOR COST

Schedule:

Working Days/Year

Particulars Number of Workers Year 1 Year 2 Year 3

Cashier 1 365 365 365

Worker 1 365 365 365
Technical Asst. 1 365 365 365
Driver/Delivery Man 1 365 365 365

TOTAL 4
TABLE 10. TOTAL WORKING DAYS

3.9 OVERHEAD COST

Overhead expenses are composed of utilities, telephone bills and depreciation, electric
consumption is assumed at Php 8,000.00 monthly and telephone bills are at Php 1,500.00 per
month and other utilities assumed at Php10,000.00

3.10 PRODUCTION COST

Account Title YEAR 1 YEAR 2 YEAR 3

Direct Labor 108,000 118,800 130,680
Materials &
72,000 79,200 87,120
Supplies
Depreciation
7,500 7,500 7,500
(Building)

Depreciation
(Machineries & 71,600 71,600 71,600
Equipment

Utilities 102,000 112,200 123,420

TOTAL COST OF
Php309,500 Php337,700 Php368,720
SALES
TABLE 11. TOTAL PRODUCTION COST

PRODUCTION COST PER UNIT

YEAR 1 YEAR 2 YEAR 3

TOTAL
PRODUCTION 309,500 337,700 368,720
COST
MARKETING
5,000 6,000 7,000
EXPENSE
UNITS
71,760 78,936 86,829
PRODUCED
PC PER UNIT 11.25 11.18 11.11
TABLE 12. PRODUCTION COST PER UNIT