TENDER ALCO-LOTION

CHAPTER III – TECHNICAL STUDY OF THE BUSINESS

By:

Aluan, Paulo

Bathan, Mboy Jr.

Cayetano, Ivy Garcia

Delen, Mary Pauline

Delgado, Jocell

Gutierrez, Josephine

Samson, Juicyeca

Valdez, Giliw Jaro

Viterbo, Jasper
 CHAPTER III

This chapter describes the Technical Study of the Business. It is consisting of

product description, uses of the product, operational process, production schedule, print
layout, equipment and machinery, supplies, direct and indirect materials, utility expense and
the waste management. Those things are very essential to an organization towards success.

A. DESCRIPTION OF THE PRODUCT

Tender Alco-Lotion Manufacturing Company provides a different product in

the skin care industry. The business ensured that the alco-lotion that being created is
made up of organic and tried to lessen the chemical contents that can cause harmful
effects to the skin and body of the users. Mostly of the skin care products are
composed of purely chemical based contents. The company is dedicated to produce
a skin care alco-lotion that has the capability to give not just a soft touch to the skin
but also to provide protection from bacteria and viruses such as COVID19 which is
timely and relevant to the province of Batangas.

Tender Alco-Lotion is an innovated product blended with its three different

ingredients such as aloe vera, virgin coconut oil and alcohol. These three ingredients
of Tender Alco-Lotion have a remarkable impact to the community of Batangas which
is the specific target market of the business. The company also created a tagline as
we emphasize, “Healthy Body begins with a Healthy hand.”

On the other hand, Aloe Vera is perhaps one of the most widely used herbal
remedies for topical skin conditions. This is because the gel-like components of the
plant are known to heal the skin from a variety of minor ailments.

The product also contains virgin coconut oil may be linked to some
potential benefits for skin, including reducing inflammation, keeping skin moisturized
and helping heal wounds. The medium-chain fatty acids found in coconut oil also

possess antimicrobial properties that can help treat acne and protect the skin from
harmful bacteria.
 Tender Alco-Lotion is created as a hand hygiene cream for people specifically
for people who keep are workaholic and commuters. Transportation is significant
among the lives of every Filipino. That’s why there are various means of going to
your workplace such as riding in a jeepney, bus, taxi, van, MRT, LRT, or even your
own car. But due to the interaction and encounter with other people and things on the
road, bacteria are easily carried and transferred to your body. Because of this,
alcohol became one of our daily necessities and cleaning our hands through rubbing
it on our palm is considered as a habit we can’t resist.

B. USES OF THE PRODUCT

This aims to show the uses of the product of the business. It also consists of
the extended uses of it. Basically, it clearly describes the flexibility of Tender Alco-
lotion among the other branded products in the industry.

An Alco-Lotion is a product designed to remove and prevent germs, bacteria

and viruses. This product typically delivers moisture and protection to the skin. It is a
multi-tasking product because it is not just focused on fighting germs but can also
gives moisture to your skin provided by the natural ingredients.

Table 3.1 sowed the advantages of Tender Alco-Lotion among the other
branded products. It shows the different branded products with its strengths and
weaknesses. The business decided to make this for clearing and showing the
similarities and differenced of each product.
 TABLE 3.1

PRODUCT DESCRIPTION

NAME STRENGTH WEAKNESS

Tender Alco-Lotion  New in the market
 Effective against  High cost of market
bacteria and viruses entry
 Innovative
 Moistures skin
 Can enjoy a germ-
free skin
 Natural ingredients
 Fragrance for a long
period of time
 Easy to use –
convenient

Green Cross Alcohol  Prevents the growth  can cause skin

of bacteria irritation
 Convenient  can cause dry skin
 Fragrant

Family Isopropyl Alcohol  with moisturizer  Has a strong smell

 pure chemical  Can cause dizziness,
content irritation of the nose
 and mucous
membranes

C. OPERATIONAL PROCESS
 This portion shows the detailed Tender alco-Lotion manufacturing Company
production process, from the first step of the process until packaging. Storing and
delivering to the customers and retailers.

Production Process

Below was the process about the extraction and formulation of Tender Alco-
Lotion from Aloe Vera. This study has the experimental methods and procedure of
research. The raw materials were gathered and mixed together for the formulation
of the Alco-lotion. These include the Aloe Vera Gel, virgin Coconut Oil, Cetyl
Alcohol, and lavander oil. The produced alco-lotion was compared to other
commercially available alcohols.

A. Ordering of raw Materials

- Ordering of raw materials is very important in order to have supply
or stock that will be used for the [production of Alco-Lotion such as
aloe vera gel, virgin coconut oil, alcohol, and lavander scent oil.

B. Preparation of raw Materials

- The raw materials such as aloe vera gel, virgin coconut oil, alcohol
and lavander scent oil will be collected for the production.

C. Extraction of Aloe Vera Gel

- The extraction process will be done through cutting, once the leaf
has been peeled, you will see the natural aloe vera gel. Using a
small spoon, scoop it into your blender. Be careful not to include
any pieces of the aloe vera skin. Blend the gel until it’s frothy and
liquefied, which should only take a few seconds.

Aloe Vera Gel

 1. Prepare the aloe leaves
- To use a fresh aloe leaf from a plant, first cut off one of the outer
leaves from the base of the plant.
You can also use a store-bought leaf.
- Wash it well, removing any dirt, and then stand it upright in a cup
or bowl for 10–15 minutes. This allows the yellow-tinted resin to
drain out of the leaf.
- After the resin has drained completely, wash off any remains on
the leaf and peel off the thick skin using a small knife or vegetable
peel
2. Make the Gel
- Once the leaf has been peeled, you will see the natural aloe vera
gel.
- Using a small spoon, scoop it into your blender. Be careful not to
include any pieces of the aloe vera skin.
- Blend the gel until it’s frothy and liquefied, which should only take
a few seconds.
3. Add Preservatives
- Vitamins C and E are excellent preservatives that can greatly
extend the shelf life of your aloe vera gel.
- Though the gel naturally contains some of these vitamins, it’s not
enough to preserve the gel for longer than 1 week.

Virgin Coconut Oil

Boiling Method

1. Heat 4 cups of water. Place the water in a saucepan and put it on a

burner. Turn the burner to medium-high and heat the water until it
starts steaming
2. Grate the meat of 2 coconuts. Use a fully developed brown
coconut instead of a young green one. Open the coconut, scoop out
the meat and grate it into a bowl.
3. Blend the coconut and water. Put the grated coconut in a blender.
Pour the hot water over the coconut and close the lid of the blender.
Hold the lid of the blender in place and puree the coconut and water
into a smooth mixture.

 Don't fill the blender more than halfway full with hot water. If your
blender is on the smaller side, blend the coconut and water in two
batches. Filling the blender too high may cause the lid to fly off.
 Hold the lid in place while you're blending the mixture; otherwise, it
could come off while you're blending.
4. Strain the coconut liquid. Place cheesecloth or a fine-mesh
strainer over a bowl. Pour the pureed coconut over the cloth or
strainer so that the coconut milk drips into the bowl. Use a spatula to
push the pulp and squeeze out as much liquid as possible.
 If it's easier for you, you could pick up the cheesecloth and squeeze
it over the bowl with your hands.
 To extract even more liquid, pour more hot water over the pulp and
squeeze it again.
5. Boil the coconut liquid. Place it in a saucepan on a burner and
turn the heat to medium-high. Bring it to a boil and cook, stirring
constantly, until the water has evaporated and the cream has
separated from the oil and turned brown.
 The process of boiling the liquid until it reaches the right state could
take over an hour. Be patient, and stir constantly.
 If you'd rather not boil the mixture, you can allow it to separate on its
own. Place the liquid in a bowl and cover it with plastic wrap. Leave
it at room temperature for 24 hours, then place it in the refrigerator
so the oil solidifies and floats to the top. Strain the oil from the liquid.
D. Combination and Blending
First, add 1 cup aloe vera gel, 4 TBSP fractionated liquid coconut oil, 1 tsp.
vitamin E oil, 70% isopropyl alcohol and 10-20 drops lavender essential oils to a
large bowl. Using an electric hand mixer or whisk, whip this combination for minute or
so. Transfer to a small jar or pump bottle for use.

E. Filtering
The mixed aloe vera gel, alcohol, coconut oil and lavander essential oil will be
filtered and that is ready for packaging. This will take 40 minutes.

F. Packaging
After all the ingredients are mixed, it will be ready for packaging. This will
take one hour.
G. Storing or Warehousing
The package of Tender Alco-Lotion is then put into warehouse by the
packaging staff. it is important to put package finished Tender Alco-Lotion in
warehouse for future sale especially when bulk orders happened. This will take 1-2
hours.

H. Delivering
Quality in delivery must maintain in order to have a quality on Tender Alco-
Lotion. The finished products are then delivered or shipped to retailer,
merchandiser and distributor by the delivery boy. Delivery of finished Alco-Lotion is
important in order to deliver the order of clients properly and timely.
 PREPARATION AND
START ORDERING OR RAW
strat CLEANING THE RAW
MATERIALS
MATERIALS (15-20 mins)

COMBINATION AND
BLENDING (ALOE VERA
GEL, VIRGIN COCONUT
EXTRACTION OF ALOE
OIL, CETYL ALCOHOL,
VERA GEL AND
ESSENTIAL OIL) (20-30
COCONUT OIL (20 mins)
mins)

FILTERING (40 mins) PACKAGING (60 mins)

WASTE

DELIVERING
STORING AND
WAREHOUSING (1-2
hours)

END

FIGURE 3.1

PRODUCTION FLOW CHART

 D. PRODUCTION SCHEDULE
Tender Alco-Lotion manufacturing Company intends to operate Monday-
Saturday from 7:00 AM to 4:00 PM. The company will be operational year-round.

TABLE 3.2

PRODUCTION SCHEDULE

DAY HOURS OF NUMBER OF LUNCH BREAK

PRODUCTION GOODS
PRODUCE

Monday 7:00 – 4:00 100 12:00-1:00

Tuesday 7:00 – 4:00 100 12:00-1:00

Wednesday 7:00 – 4:00 100 12:00-1:00

Thursday 7:00 – 4:00 100 12:00-1:00

Friday 7:00 – 4:00 100 12:00-1:00

Saturday 7:00 – 4:00 100 12:00-1:00

Sunday CLOSED

The daily production of the business is shown on the table above. The
number of days in a week is six, therefore there would be 26 days in a month. The
production will start at 7;00 AM until 4:00 PM; the employees are given to have one-hour
break.
E. PLANT LAYOUT/LOCATION
This portion show the plant layout of the business. Location influences plant
layout facilities needed. Location influences capital investment and operating
costs. Location decision also affects the efficiency, effectiveness, productivity and
profitability.

FIGURE 3. 3

PLANT LAYOUT
 TENDER ALCO-LOTION
MANUFACTURING COMPANY

FIGURE 3.3.

PLANT LOCATION

F. EQUIPMENT AND MACHINERY

This is a tangible personal property or other property with a depreciable life of

3 years or more that is used as an integral part in the manufacturing, processing,
compounding, or production of tangible personal property for sale or is exclusively
used in spaceport activities. Buildings and their structural components are not
industrial machinery and equipment unless the building or structural component is so
closely related to the industrial machinery and equipment that it houses or supports
 that the building or structural component can be expected to be replaced when the
machinery and equipment itself is replaced. Heating and air conditioning systems are
not considered industrial machinery and equipment, unless the sole justification for
their installation is to meet the requirements of the production process, even though
the system may provide incidental comfort to employees, or serves, to an
insubstantial degree, nonproduction activities. 

 Extracting machine – Extracting is a manufacturing operation, or a process

associated with a manufacturing operation, in which oil, gas or mineral deposits are
removed from their natural underground reservoirs. Raw materials are squeezed out
with firm pressure to produce an extract.

FIGURE 3.3.

Extracting Machine

 Mixing Machine – when materials need to eb broken down, manufacturers use

mixers. A mixer can be a machine that can blend, homogenize, or emulsify a various
type of materials into a single substance. Mixers – also known as blenders are
capable of thoroughly combining any liquid or solid that a final product requires.
 FIGURE 3.5
Mixing Machine

 Filtering Machine – The separative process of filtration is widely used in the

biopharmaceutical industry to remove contaminants from liquids, air and gases such
as particulate matter, microorganisms.

FIGURE 3.6

Filtering Machine
 TABLE 3.3.

EQUIPMENT AND MACHINERIES

MACHINE AND QUANITITY PRICE TOTAL

EQUIPMENT

Extracting 1 50,000.00 50,000.00

Mixing 1 40,000.00 40,000.00

Filtering 1 30,000.00 30,000.00

Mini Truck 1 100,000.00 100,000.00

Computer 2 10,000.00 20,000.00

Telephone 1 3,000.00 3,000.00

TOTAL 243,000.00

G. SUPPLIES, TOOLS AND ACCESSORIES

This is something that the company all take for granted the importance of
office supplies. It is the common denominator in the business world, and yet the
business never takes a step back and assesses what us so important about it. A lot
of companies
out there don’t really focus on their office supplies and really leave that down to the
workers to sort out. Preparing the right supplies is one of the effective and efficient
things that the business done, because having the right materials can lead to make
the process easier.
TABLE 3.4 SUPPLIES EXPENSES

SUPPLIES PRICE

Table 5,000.00

Chair 3,000.00

Ballpen 800.00

Bond paper 1,500.00

Folder 1,000.00

cabinets 4,000.00

TOTAL
15,300.00

TABLE 3.4 TOOLS EXPENSES

TOOLS PRICE
 CART 2,000.00

TOTAL 2,000.00

H. DIRECT AND INDIRECT MATERIALS

This portion shows the direct and indirect materials of the business. Direct
materials are those that are used directly in the production process and are reflected
in the final product. ... Indirect materials are those that are used in the production of
the final product indirectly. They cannot be directly measured and conveniently
charged to the cost of production.

TABLE 3.6

DIRECT MATERIALS

DIRECT MATERIALS PRICE

Aloe Vera Gel 20.00

Virgin Coconut OIl 15.00

 Essential lavender oil 35.00

Cetyl Alcohol 65.00

TOTAL 135.00

The indirect material are resources used in a manufacturers production process that
can’t be to the products or batches of products. They are as of the following:

TABLE 3.7

INDIRECT MATERIALS

INDIRECT MATERIALS PRICE

PLASTIC CONTAINER 15.00

LOGO 1.00

BOX 10.00

TOTAL 26.00
 To sum up, the total direct and indirect materials is Php 161.00

TABLE 3.7

TOTAL DIRECT AND INDIRECT MATERIALS

DIRECT MATERIALS 135.00

INDIRECT MATERIALS 26.00

TOTAL 161.00

I. UTILITY EXPENSE

This portion describes the utility expense of the business. Under the accrual
basis of accounting, this account reports the cost of electricity, heat, sewer and water
during the period indicated in the heading of the income statement. Because utility
companies deliver the service and then later measure the amounts used and then
prepare the billing, a company’s utility expense amount should be based on the
amount of utilities used during the period (as opposed to the amount paid during the
accounting period). Utilities used in the manufacturing process will be part of the cost
of the products manufactured. The category is sometimes also associated with
expenditures for ongoing telephone and internet service. This expense is considered
a mixed cost, since there is usually fee component plus a variable charge that is
based on actual usage.
 The business management created this table to show the total expenses of
the business each month.

TABLE 3.9

UTILITIES MONTHLY ANNUAL

Water 2,500.00 30,000.00

Electricity 15,000.00 180,000.00

Telephone and Internet 1,500.00 18,000.00

Transportation 1000.00 12,000.00

TOTAL 20,000.00 240,000.00

UTILITY EXPENSE

J. WASTE MANAGEMENT

Waste collection and rubbish disposal play an extremely important role in

the global cleanliness and sustainability drive, with people’s health and the
conservation of resources being the responsibility of every government. This was an
effective technique for these early people because their population was relatively
small an they did not produce waste on the same scale or with the levels of
complexity that modern humans. The most important reason for water collection is the
protection of the environment and the health of the population.
 Tender Alco-Lotion manufacturing Company’s main waste is the extracted
aloe vera gel and the coconut oil and to manage this waste the company will consider
composting process that turns organic waste like aloe vera into fertilizers that can be
used to nourish plants. The other waste will be segregated and will place in storage
until waste collectors arrived. Failing to do so could result in the business becoming
liable for any damages caused through their negligence.

Disposing of waste in a responsible, safe and ethical manner is extremely

important when it comes to waste management. A strong emphasis on recycling
bottles reduce the adverse effects of waste on the environment. Consistent waste
reduction and recycling will reduce the amount of materials being sent to landfills and
incinerators, and the emission of greenhouse gas and other forms of pollutant will be
reduced.

The business decided to make a chart to be able to see how the

waste being used and disposed:

FIGURE 3.7

DISPOSAL PROCESS

ALOE VERA
AND COCONUT
OIL

EXTRACTING PROCESS
 Extract of Aloe Vera and
Waste
Coconut

Fertilizer Waste Collector (END)