1

Hollow Blocks with Shredded Disposable Plastic Bottle

A Feasibility Study
Presented to the Faculty of the
PHILIPPINE PUBLIC SAFETY COLLEGE
NATIONAL JAIL MANAGEMENT AND PENOLOGY TRAINING
INSTITUTE
Camp Vicente Lim, Calamba Laguna

IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS
FOR
JAIL OFFICERS BASIC COURSE CLASS 2021-01

BY

JAIL INSPECTOR DESMAN C ONSAT

JAIL INSPECTOR CARMELO G
MALACAMAN
JAIL INSPECTOR JONA B
GUADALUPE JAIL INSPECTOR
RHOLYN B PASQUIN JAIL
INSPECTOR RONALDO B DELFIN

APRIL 2022
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ACKNOWLEDGEMENT

The proponents of this study would like to express their deepest

appreciation and gratitude to the following individuals and institutions who had

significantly contributed to the undertaking of this study:

To National Jail and Penology Training Institute for their support and

guidance in the conduct of the study.

To KIPKAP Hardware and Tiffany Construction for allowing their

establishment to visited.

To Mr. Arvin Brugueles in imparting his expertise in enhancing our

capabilities to this study.

To our beloved family, relatives and friends who supported and

assisted us in the conceptualization and enhancement of the group’s outcome

and performance throughout the course.

And above all, eternal thanks to our Almighty God for the gift of life,

knowledge, strength, willpower, protection, and guidance for making the

study possible and to accomplish our goal to finish this Officer Basic Course.
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TABLE OF CONTENTS

Title Page 1

Acknowledgement 2

Table of Contents 3

Introduction 6

Project Summary 7

a. Name of Enterprise 10

b. Location 10

c. Descriptive Definition of the Study 11

d. Feasibility Criteria 12

e. Highlights of the Project 13

Objectives of the Study 18

Market Study 19

a. Size, Nature, and Growth of the Total Demand of the Project 19

b. Description and Price of the Product to be Sold 24

c. Supply Situation and the Nature of Competition 28

d. Factors Affecting the Market of the Product 35

e. Appropriate Marketing Program for the Product 37

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Technical Study 39

a. The Product 39

b. Manufacturing Process 39

c. Plant Size and Production Schedule 44

d. Machinery and Equipment 46

e. Plant Location 47

f. Plant Layout 49

g. Building and Facilities 49

h. Raw Materials and Supply 51

i. Utilities 53

j. Waste Disposal 53

k. Production Cost 54

l. Labor Requirements 55

Financial Study 56

a. Major Assumptions 57

b. Schedule 1 (Manufacturing Cost) 59

c. Schedule 2 (Operating Expenses) 61

d. Schedule 3 (Schedule of Depreciation) 61

e. Schedule 4 (Project Production) 62

f. Schedule 5 (Project Total Sales) 62

g. Statement of Cost of Goods Manufactured and Sold 63

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h. Projected Statement of Cash Flows 64

i. Projected Statement of Partner’s Equity 65

j. Projected Balance Sheet 66

k. Projected Income Statement 67

l. Financial Analysis 68

SOCIO-ECONOMIC STUDY 70

ORGANIZATIONAL AND MANAGEMENT STUDY 73

a. Basic Considerations in Forming the Organization 73

b. Forms of Ownership 73

c. Organizational Chart 77

d. Officers and Key Personnel 78

e. Project Schedule 80

APPENDICES 81

a. References 81

b. Documentation 82

c. Curriculum Vitae 89
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INTRODUCTION

The Livelihood program of the Bureau of Jail Management and

Penology (BJMP) are intended to prepare the Person Deprived of Liberty

(PDL) to be reintegrated to the community. One of the notable products that

was portrayed in many media platforms are the paintings by the PDL of

Tagaytay City Jail. This is only one of the many products made by the jails

manned by the BJMP that continuously help the PDL financially and they

can even support their family outside despite being incarcerated.

It is very important that the PDL to have skills so that he/she may have

a source of income to lessen the possibility of property related crimes upon

reintegration. This led to the researchers to conduct feasibility study

regarding the concrete hollow block with disposable plastic. The study was

chosen for the raw materials are readily available and that it is easy to

produce. Plastic was also included in the raw materials in order that it can

contribute to waste management and ecosystem.

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PROJECT SUMMARY

Concrete Hollow Blocks (CHB) are one of the most used materials in the

Philippines. The reason for this is their relative low cost when compared to

other materials and speed of installation by semi-skilled laborers.

Cement concrete hollow blocks have an important place in modern

building industry. They are cost effective and better alternative to burnt clay

bricks by virtue of their good durability, fire resistance, partial resistance to

sound, thermal insulation, small dead load and high speed of construction.

Concrete hollow blocks being usually larger in size than the normal clay

building bricks and less mortar is required, faster of construction is achieved.

Housing and construction are two of the major drivers of growth in

more than 40 allied industries and directly adds to the construction hollow

blocks industry. In addition, for the building of roads, flyovers and bypasses

there is a mass and consistent need of fabricated blocks across the country.

Various construction and real estate development projects are in progress

and are continuously being commissioned which will have high demand of

prefabricated construction material all over the country.

Plastic on the other hand is a hazardous substance especially when

not disposed properly. According to Jose G.B Derraik, “the plastic being at

the oceans and seas contributed to the death of many marine species.
In this case the incorporation of plastic materials will contribute to

lessen the plastic being thrown irresponsibly.

Concrete Hollow Blocks have the following advantages:

1. High Durability. Concrete hollow blocks are

compacted by high pressure and vibration, which make the blocks

very strong and able to withstand a high level of loading. They also

have high fire resistance and no salinity which reduces their

maintenance cost.

2. Cost- effective. One concrete hollow block replaces

five traditional bricks, and thereby reduces the construction cost. It

also decreases the cost of the structural design of the building due

to its light weight, which shrinks the size of structural members of

both the foundation and superstructure. Hollow block construction

also requires less mortar and saves labor hours, reducing both

mortar and labor costs.

3. Speedy construction. Concrete Hollow Blocks are

east to install due to their uniform size and shape. They also have

less weight which facilitates rapid construction work. Even

unskilled laborers can easily work with hollow blocks.

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4. Environment-friendly. Unlike traditional brick manufacture,

which releases harmful fumes, hollow blocks are machine- made, thus saving

our environment. Concrete Hollow Blocks are energy efficient building

materials because of their insulating properties, thereby reducing energy

consumption, and helping to build a green city for the future generations.

5. Earthquake Resistance. Concrete hollow blocks offer superior

earthquake resistance this owing to their light weight, which significantly

reduces the building load. Providing a stable foundation and makes it resilient

to any natural hazards like earthquakes. Concrete hollow blocks uniformity

also reduces vulnerability during natural disasters.

6. Raw materials can be easily sources. Raw material for concrete

hollow blocks such as crushed coarse sand or gravel is optimal for the

manufacture of CHBs which can be locally sourced in the Philippines.

This study will further the project on how the construction of hollow

blocks is conducted, the materials needed, procedures to be followed, its uses

as well as expenses and other financial factors to be considered on

construction of hollow blocks.

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a. Name of the Enterprise

The name of the enterprise will be Sakalam hollow blocks. It is derived

from the name of the during in JOBC class 2021-01, which a slang term for

“malakas” or in English term is strong. The name is unique and at the same

time well known to the public for the reason that, it is often used by the

celebrities and media programs. By this reason, customers will be attracted

immediately by merely reading the name of the enterprise.

b. Location

The proposed site of this project will be at one of the proponents’

owned properties in Iloilo. The proposed site is already engaged in the

business of making concrete hollow blocks and this project will be integrated

to that the small- scale business.

Since the site is already in the business of making hollow blocks the

proponents’ realized that integration of this project is ideal for there is already

ready-hand machineries and equipment that can be used. It is also

advantageous for the group for the laborers are known by one of the

proponents and the trust are vested on them that they will perform effectively

and efficiently. The suppliers of cement and gravels are also accessible to the
 11

site and the suppliers can provide discounts for every purchase as the case

may be.

b. Descriptive Definition of the Project

Concrete hollow blocks with shredded plastic are made out of mixture

of Portland cement, sand, gravel or stones, water and shredded plastic.

Cement concrete hollow blocks with shredded plastics are modern

construction materials and as such can be used in all the constructions

viz. residential, commercial and industrial building constructions.

In line with the program of the Philippine Government which is the

“build, build, build”, the construction buildings and roads may need hollow

blocks in which the products of the proponent will be utilized.

Since construction industry is a growing a sector and the demand of

concrete hollow blocks (CHB) product is always high in all cities and other

urban centers for construction of residential apartments, commercial buildings

and industrial buildings, the proponents of this project opted for a product

that is in demand in the market with a view of higher return of capital.

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The proponents considered the desirability of this project as well as its

market value. The proponents choose the PDL as the primary work force for

this project. The PDL will be easily trained since the project does not require

technical knowledge but focuses more on manual and physical labor. The

production of concrete hollow blocks will also intensify the livelihood services

in the jail as part of the inmates’ welfare and development program of the Jail

Bureau. This is a way forward to developing and enhancing local and

international marketing of jail industry.

Concrete hollow blocks have become the regular and frequent

choice in construction activities hence, the potentiality of this project is highly

probable considering that the construction industry in the country is ever

evolving and continuous. Also, the production of concrete hollow blocks is

already commercialized locally and in the international arena.

d. Feasibility Criteria

The production of concrete hollow blocks aims for an ideal

livelihood program for the PDL of Barotac Viejo District Jail through the

initiatives of the researchers and support of the jail warden. This project will

provide for a source of income for the PDL and to deter further criminal

involvement upon their reintegration into the mainstream of the society.

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Likewise, it is for the Jail Bureau, particularly the Barotac Viejo District

Jail, to strengthen its livelihood program, to develop a long-range measure of

aftercare program, to be effective agents of transformation, and to reduce the

number of offenders who wind up back in the jail once they are released. In

addition, the warden and its personnel may also benefit from this project with

its primary focus on establishing an ideal livelihood program in the jail.

The BJMP personnel and PDL presently assigned and detained at

Barotac Viejo Distric Jail will serve as work force such as but limited to three

(3) to four (4) persons to be employed as primary workforce for this project.

Additional manpower maybe increased once the product demand will also

increase. Furthermore, the production of concrete hollow blocks is

environmentally friendly, and it has no adverse effect to the environment. No

solid, liquid, or gaseous wastes are generated during the manufacturing

process of concrete hollow blocks.

e. Highlights of the Project

1. History

The BJMP continues to adopt livelihood programs for the PDL. In fact,

during Christmas season the streets of Iloilo will light and adorned by

handcrafted lanterns made by the PDL as commissioned by a public-

private
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partnership. This kind of livelihood-partnership program with the PDL gives

them the opportunity to earn income as well as have a sense of fulfillment in

contributing to the city with a sense of inclusivity in the society despite of

being incarcerated.

The proponents of this project see fit to adopt this kind of program

because the economic demand ability of concrete hollow blocks in the market

is much higher than the previous livelihood programs adopted in the jail.

Hence, much higher return of income for both the proponents of the project

as well as higher income benefit for the PDL workers.

The researcher of this project also considers the fact that one of the

proponents of the project has already been engaging in the business of

making concrete hollow block, hence business operation for the partnership

would be easier and well managed because of the background know-how on

the proposed project of one of the proponents.

2. Project Timetable and Status

After gathering information and conducting research in relation for the

project matter, production or making of concrete hollow blocks will be

implemented during the third quarter of 2022.

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The proponents consider that since construction is a growing industry

especially with the country's “Build, Build, Build” program and with the flow of

investment in Iloilo City alone, the demand for concrete hollow blocks in the

market as well as for construction company is highly probable and marketable

hence, higher chances of return of investment if this project will ever

materialize.

Moreover, the production of concrete hollow blocks may be initially

introduced in Barotac Viejo District Jail to be used for any needed renovation

and construction of jail facilities.

3. Nature of the Industry

The construction industry plays a significant role in the national

economy. It’s activities and construction projects are vital to the national

socio-economic development goals of providing citizens with shelter,

infrastructure, and employment. According to Economy Watch (2010), the

“construction industry is a booming industry and will remain so with the

continuation of the development process, especially in the developing

countries.” Globally, “the construction industry is expected to reach an

estimated $10.5 trillion by 2023, having been forecast to grow at a Compound

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Annual Growth Rate (CAGR) of 4.2% from 2018 to 2023.” Due to the

increasing urbanization and booming population, there is an increased need

for housing starts and rising infrastructure, thus making them the two key

players of the market growth.

The proposed project envisages the setup of a construction hollow

blocks manufacturing project. Construction blocks industry is an important

industrial sector in the country engaged in producing blocks used as

prefabricated material for various construction activities like construction of

roadside pave ways, garage and parking floorings, walls making, block paved

driveways, and floor coverings of commercial buildings, etc.

The process of making of Concrete Hollow Blocks is simple and

that can be easily learned by the chosen PDL of Barotac Viejo District Jail.

4. Mode of Financing

Capital is one of the most important factors in starting up a business.

Startup capital is the fuel that will feed the fire and every business needs.

Capital provides various tools, machines and equipment required in the

production of concrete hollow blocks. Each of the proponent of this project

will contribute a capital share of two hundred thousand pesos each with the

total of
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1,000,000. This startup capital will be intended for the procurement of the

necessary tools and raw materials.

The remaining amount, if any may be used as reserves of the

partnership in case of future expenses. In any case that the project will be

needing an additional expense, the partners will be required to contribute

additional amount needed or required to cover such expenses. The income of

this project will be used in generating alternative investment for developing

livelihood program for the PDL.

5. Investment Cost

The total amount needed to start to produce concrete hollow blocks for

the first two months will be at 60,000.00 pesos with at least 3-4 working PDL.
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OBJECTIVES OF THE STUDY

The objective of this study is to affirm the worth of a PDL as a human

person. During the confinement in jail, they are given with the opportunity to

learn skills through engagement in various programs such as livelihood,

educational and vocational training. These programs aim to help PDL

generate income while in jail for their personal upkeep and for their families

as well.

This study is designed to provide technical skills to persons

deprived of liberty (PDL) so that they could have livelihood once reintegrated

to the society or even during incarceration. This study aims to:

1) Provide technical skills to PDL for the making of concrete hollow blocks.

2) Provide a source of income for PDL either for individual gain or for

their families.

3) Monitor and assess the program as important aspect to enhance the

livelihood program of the jail.

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MARKET STUDY

This chapter will help to know the marketing aspect of the business.

The marketing aspects will cover the following: Size, Nature, and Growth of

the Total Demand for the Product; Description and Price of the Product to be

Sold; Supply Situation and the Nature of Competition; Factors Affecting the

Market of the Product; Appropriate Marketing Program for the Product.

A lot of factors have to be considered in putting up a business

because for business to prosper, it should be given time and effort. While we

recognize the importance of financial investment, time, effort, man power as

well as effective management should also be considered in putting up a

business in order to provide quality service to its customers.

The fulfillment of the needs and wants of its customers or target must

be the key objective of the recommended business. In every project,

feasibility marketing aspect is well- thought- out the most important since it will

require analysis of the business of the total demand and supply.

a. Size, Nature, and Growth of the Total Demand for the Product

i. The Target Market

The target market for concrete hollow blocks are the following:
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i. The BJMP Barotac Viejo District Jail if in need for necessary

renovation of the buildings and the likes which involves construction.

ii. Contractors

iii. The public in general.

The production of concrete hollow blocks is deemed to be profitable

due to availability of rich raw material base in any country. With the growth of

the building and construction industry it is the driving the concrete hollow

block market globally.

In the Philippines alone, construction sector is driven strongly by

transport infrastructure especially with the rail and road development. The

local construction industry is seen to have grown by 24.2% in 2021 and

16.1% in this year, outpacing the growth of the overall economy. The

Philippines’ construction sector grew by 25.7 percent year-on-year in real

terms in the second quarter, posting one of the highest construction growth

rates in its history.

In the 2021 national budget, the allocation for the Department of

Public Works and Highways increased by 61.3 percent to P695.7 billion

or

15.4 percent of the P4.506-trillion budget. The Department of

Transportation’s budget also rose by 4.4 percent to P87.9 billion. This budget
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is expected to continue increasing in 2022, with P1.1805 trillion proposed for

infrastructure and the “build, build, build” program of the government.

Majority of the 112 projects included in the program are transport

projects, with others focused on information and communications technology

infrastructure, water resources and urban development. Of these, 51 projects

are under construction or project implementation, 31 projects are under pre-

construction status, while the rest are pending approval. Given this factor, the

demand for concrete hollow blocks is highly probable.

Lastly, with rising population and urbanization concrete hollow blocks is

projected to boost their demand in residential construction.

ii. Daily Average of the Target Markets

The data here is based on the growing demand from construction

industry considering the major players and key consumers for the concrete

hollow blocks.

According to 2019 Philippines Statistics Authority census the total

number of constructions in the first quarter of 2019 reached 39,762, based on

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the preliminary results of construction statistics from approved building

permits. This reflects an increase of 10.4 percent from the 36,002

constructions recorded during the same quarter of 2018.

By type of construction, residential building reported the highest

number at 27,528 or 69.2 percent. Compared with the first quarter of 2018,

this type of construction was 8.5 percent higher this quarter. The growth was

mainly attributed to the increase of single-type houses (12.3%).

The number of non-residential constructions at 6,449 accounted for

16.2 percent of the total, posting 15.4 percent increase from the 5,587

constructions recorded during the same period of 2018. All the types of non-

residential constructions recorded increases as follows: agricultural (55.2%),

institutional (26.9%), industrial (21.7%) and commercial (7.0%) buildings; and

other non-residential structures (50.0%). The number of additions to existing

structures at 1,580 (4.0%) was higher by 22.2 percent from the 1,293

recorded during the same quarter of 2018. Similarly, the combined number of

alterations and repairs of existing structures at 4,205 (10.6%) increased by

11.8 percent from the 3,760 projects recorded in the same quarter of previous

year.
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Figure 1 compares the number of constructions by type for the first

quarters of 2019 and 2018.

Residential building consists of single house, duplex house, apartment,

residential condominium, and other residential construction. While non-

residential building compromises commercial, industrial, agricultural and

institutional building.

Block making has a significant position in the construction process

particularly in the housing sector where prefabricated blocks are used

extensively with more than 40% of the total structure of the building.

Concrete hollow blocks play a key role in construction industry and with the

construction increase in the country the use of concrete hollow blocks for

residential and non-residential construction either undergo by construction

companies or the public in general.

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b. Description and Price of the Product to be Sold.

i. Name of the Product

The name of the product remains as Concrete Hollow Blocks

with disposable plastic. Concrete Hollow Blocks is made from mixture of

ordinary cement, mineral aggregate (sand and stone chips), water and plastic

bottles. The water used in preparing the concrete serves two purposes:

1) It combines with the cement to form a hardened paste

2) It lubricates the sand and stone chips to form a plastic workable mass

The water that combines with the cement varies from about 22 to 28%

of the total amount of mixing water in concrete. Mineral aggregates (sand

and stone chips) are normally divided into two fractions based on their

particle size. Aggregate particles passing through the No.4 or 4.7 mm Indian

Standard sieve are known as fine aggregate. The particles retained on this

sieve are designated as coarse aggregate.

Natural sand is often used as fine aggregate in cement concrete

mixture, coarse aggregate are crushed stone chips. Crushed stone chips

broken into particle sizes passing through the 4.7 mm sieve may also be used

as dine aggregate. The maximum size of the coarse aggregate that maybe

used in cement concrete hollow blocks is 12.5 mm. However, the particle size

of the coarse aggregate should not exceed one third thickness of the thinnest
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web of the hollow blocks. The plastic will be mix approximately 1, hollow

block per 1 plastic bottle of water.

The product will be registered with the Department of Trade and

Industry to protect both the interest of the proponents as well as its

consumers. Registration with DTI will ensure the public that the concrete

hollow blocks produced by the makers followed the standard processes and

specifications needed for the hollow blocks production and it is of quality

standard.

Other necessary permits and clearances such as barangay and

mayor’s permit will be secured in the interest of legality in the operation of the

enterprise.

Below is the sample of the product to be introduced by the enterprise

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ii. Properties of the Product

Ordinary cement is the cementing material uses in cement concrete

hollow blocks. Cement is the highest period material per unit weight of the

concrete. Hence, the fine and coarse aggregates are combined in such

proportions that the resulting concrete is workable and has minimum cement

content for the desired quality

Cement is a primary component of the Concrete Hollow Block

(CHB) manufacturing process. Globally, it is widely used material, coming

only second after water. It allows the construction to process itself to be

accelerated, and work expenses at the construction site to be reduced.

Concrete is a mixture of ordinary cement, mineral aggregate (sand and

stone chips), water and plastic. The water used in preparing the concrete

serves two purposes:

3) It combines with the cement to form a hardened paste

4) It lubricates the sand and stone chips to form a plastic workable mass

The water that combines with the cement varies from about 22 to 28% of the

total amount of mixing water in concrete.

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iii. Use of the Product

Concrete Hollow Block or also known as artificial wall stone is used

for building internal and external walls. Concrete hollow block with emptiness

inside is also used as a building material in the construction of walls and

partitions of a building. They are lighter, so they do not add to the total

weight of the structure too much. Usually, these hollow blocks are produced

in a way to interlock each other.

By using concrete hollow blocks it saves time in building walls due to

its large dimensions. It is believed that concrete blocks are one of the most

popular construction materials which are used in the construction industry

almost

iv. Geographical Areas of Dispersion

The production of concrete hollow blocks will be distributed within

Barotac Viejo and its nearby towns. This with a view, that the enterprise will

expand its product distribution as part of its marketing strategies to be

introduced in residential, commercial, industrial and transportation industry.

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c. Supply and the Nature of the Competition

i. Who and where are the direct competitors?

The primary competitors in the distribution of concrete hollow blocks in

Barotac Viejo, Iloilo are also small-scale business enterprises engaged in the

making of concrete hollow blocks as well as construction companies within

the entire city.

With the growing and continuing industrialization in Iloilo alone the

need of concrete hollow blocks as prefab material used in construction are

also rising and since hollow block business is profitable, easy and simple

to manage there is also a rise of enterprise engaging in the production of

concrete hollow blocks to meet the market demand.

ii. Historical Domestic Supply as compromised by local production

and importation

Shelter is one of the three basic needs of man along with food and

clothing. The prehistoric man lived in caves, and later, he began constructing

walls from the mud. In due course of time, many techniques for the masonry

were developed and it became a structural part of the shelter. In early days,

burnt brick masonry and stone masonry were popular. Now, with growing
 29

demand for construction, cheaper and faster techniques and materials are the

need of the hour.

Concrete blocks are one such construction materials which help in

achieving cheaper as well as faster construction than conventional bricks.

The concrete blocks are available in two variations. Solid concrete blocks

and, Concrete hollow blocks

1) Solid concrete blocks are made from aggregate, Portland

cement and sand. These blocks have a solid material, not less than 75% of

the total volume of the block calculated from the overall dimensions. Hence,

they are heavy in weight. These blocks provide good stability to the structure.

So, these blocks are used for a large work of masonry. They are used in the

load-bearing walls as well as the non-load bearing walls. Solid blocks are

available in large sizes as compared to the conventional bricks. Therefore,

less time is required to construct concrete block masonry than brick masonry.

2) Concrete Hollow Blocks are the standard sized rectangular

hollow blocks made of cast concrete of high or low density. For high-density

blocks, Portland cement and aggregate, usually sand and fine gravel are

used as a raw material. For low density blocks, industrial wastes, such as flasher
 30

bottom ash is used as the primary raw materials and are often called cinder

blocks /breeze blocks in different parts of the world. As per the definition

given in the ‘Indian Standard – IS 2185 (Part – 1) 2005’ hollow concrete

blocks are having one or more large holes or cavities which either pass

through the

block (open cavity) or do not effectively pass through the block (closed cavity)

and having the solid material between 50 and 75% of the total volume of the

block calculated from the overall dimensions. These holes or cavities reduce

the total cross-sectional area of the block and hence the weight of block

structure as a whole.

Concrete hollow blocks are more commonly used in masonry

construction. It accelerates the construction process, saves cement and

steel and reduces the work expenses at the construction site. These blocks

lower the natural weight of masonry constructions and improve the physical

properties of walls, such as noise and thermal insulation. They also provide

facilities for concealing electrical conduit, water and soil pipes.

3) Lite block is the new innovative construction material, which is

cheaper in cost, easy to install ans used as structural sound blocks. Lite

blocks are exactly like regular hollow block it is made out of cement, sand
 31

mortar and infused with micro air bubbles. From its name, Liteblock is 50%

much lighter compared to hollow blocks, have low water absorption.

4) Bricks are traditional building materials used dated back in

7000BC. Bricks are discovered in Southern Turkey it is a type of block used

to build walls pavement and other elements in masonry. Clay bricks are

sustainable and eco- friendly products, and they also have high thermal mass

which means that if the building is constructed using clay bricks the building

will absorb heat and release it slowly at night, ensuring that the building

maintains an even temperature. A building constructed in bricks are usually

warmer in winter and cooler in the summer. Bricks are much more expensive

than using concrete blocks. Nowadays, only few uses clay bricks as prefab

material. The use of clay bricks is widely seen in most ancestral houses than

in modern houses these days.

Table 2 herein will show the different kinds of prefab construction

materials in the market as well as their corresponding price. The proposed

selling price of concrete hollow block 6” is 20 Philippine Peso as compared to

other prefab construction materials. Although the proposed price may still

change depending on the selling price of concrete hollow blocks in the market.
 32

Table 2. Prefab construction blocks materials in the market

Product Price Remarks

1) Concrete Hollow Php 12-15 Locally/ internationally
Blocks 4” Manufactured

2) Solid Concrete Blocks Php 33 Locally/ Internationally

Manufactured

3) Lite Block Php 91 Locally Manufactured

4) Clay Bricks Php 35 Locally/ Internationally

Manufactured

iii. Evaluate Supply Growth Patterns and Future Supplies

Table 3 will show the supply growth pattern from year 1 to year 5,

respectively.

Table 3. Supply Growth Pattern for Concrete Hollow Blocks Production

Production Year No. of CHB No. of CHB Supply

produced per produced per Growth per

day year year

Yea 1 500 130, 000 0

Year 2 517 134, 420 10%

Year 3 543 141, 180 10%

Year 4 572 148, 720 10%

Year 5 605 157, 300 10%

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For the startup of the enterprise, it will be producing at least 500 concrete

hollow blocks per day with an annual production of 130, 000. For the 2nd year

of the enterprise, it will produce 517 blocks a day and annual production of

134, 420. On the 3rd year of the enterprise, it will produce 543 pieces per day

and an annual 141, 180 blocks. While on its 4 th year operation it will produce

572 blocks a day with an annual blocks production of 148, 720 pieces. Finally,

on its 5th year of operation it will produce 605 blocks a day with an annual

157, 300 block production. The increase of supply growth per year is

projected at 10%.

i. Price Study

Based on research, the product price of concrete hollow blocks in the

market these days ranges from Php 12 to Php 18 depending on the size of

the hollow blocks.

The CHB 4” is proposed to be sold at Php 12 per piece. The lowering

of the price of the product is least of the consideration of the proponents

giving that there is a boom in construction industry hence, the demand for

CHB will be continuous nor will the block products will be lowered in terms of

its price.

Also, the proponents agreed that the price will be at 12 Php since the

blocks that will be produced is assured of better quality. This is with regard to

the marketing value and strategy of the proponents.

 34

Table 4. Propose Product Pricing for CHB 6”

Production Year Production Price Per Piece of

CHB
Year 1 Php 12

Year 2 Php 12.5

Year 3 Php 13

Yea 4 Php 13.5

Year 5 Php 14
 35

d. Different Factors Affecting the Market of the Products

The proponents of this study were able to gather information about the

selling prices of different construction blocks in the local market today. As

shown in table 2, the proponents listed at least four construction blocks and

their corresponding market prices.

In Iloilo alone, the 5 top producers for CHB are IBC International

Builders, Iloilo Cement Lumbercall, Abella Lumber & Concrete Products,

Ziggy Marketing Company, Made (Market Developers) Inc. and among

others. It was also discovered that the top manufacturers of CHB in the

Philippines are Metro Manila, Marikina, Rizal, South Cotabato, and

Pampanga.

In 2012, a Hilti engineer started to test a housing technology that

uses bamboo as its sole structural element as it withstands natural disasters

and comes at a lower cost than the social housing standard materials used. In

2014 the Base Bahay Foundation was installed to apply what is called the

“Cement Bamboo Frame Technology” (CBFT). By 2018, more than 750

homes were built using CBFT method. Bamboo these days are seen as ideal

building material for sustainable homes rather than using CHB.

 36

Other communities to preserve and protect the environment and to

have built a sustainable home opted of what they called now as “Cement Eco-

bricks”. These eco- bricks are made up of shredded plastic wastes mixed with

wet cement. Cement eco-bricks are not exactly hollow. They are built like

Lego blocks with modules on top and holes at the bottom, making them

stackable and faster to pile. Compared to the standard hollow block—with

only 150 PSI, or the resistance to downward force in pounds per square inch

—cement eco-bricks are heavier, sturdier, and more compact. Depending on

the shredded plastics mixed with them, cement eco-bricks have up to 670,

770, and 870 PSI. Cement eco-bricks are currently priced at P20, sixty

percent more expensive than the regular hollow blocks.

Traditional construction has been relying on hand made bricks rather

than concrete block which has been a high-cost option while selecting

material for the house construction both in urban and rural areas of the

country. Concrete based construction is comparatively new phenomena and

historically has been employed in the urban areas where technology and

machinery were introduced due to mass demand of building material and

comparatively high average income.

Another factor affecting the marketability of CHB is the newly

introduced Lite blocks by LITECRETE Philippines who are pioneer in

the production of lightweight concrete in the Philippines. Since 2013,

 37

LITECRETE had provided Lite block to projects ranging from houses and

warehouses as well as to multiple iconic high-rise buildings all over the

Philippines.

According to the market survey, although there are various kinds of

construction blocks in the market today, the consumer still opts to buy CHB as

prefab construction materials. The CHB is still the number one option of the

consumer to buy because it is light weight, faster to build than bricks and

much cheaper than lite blocks and other construction block materials.

Despite with the rowing competition in the market, the proponent

product cost and assumed gain of 10% the proponent still offers an

affordable and still competitive price per piece of CHB. On later years, the

enterprise will soon find its way to being patronized not only by the locals in

Barotac Viejo but may be also with its nearby towns and within Iloilo City.

Advertisements and promotion initiatives as well as putting up its own social

media site may be considered as part of marketing strategies.

e. Appropriate Marketing Program of the Product

The marketing strategy for CHB, the proponents have taken a

competitive analysis in the manufacture or production of construction blocks

in the market to show the main pressure to undertake.

 38

First, the CHB produced must be of good quality or durable which

makes the blocks more strong and able to withstand a high level of loading. If

must also have fire resistance and no salinity which then reduces their

maintenance cost.

Second, a CHB of good quality produces sustainability of the product.

That the use of CHB in infrastructure will result for a more resilient, safe,

strong, adaptable and have a longer lifespan compared to other forms of

construction.

Third, it must be cost- effective that it will reduce construction cost,

structural design of the infrastructure and will save labor hours and labor cost

because it is easy to install.

Lastly, CHB must be feasible. The existence of local as well as

international competitors in the market may pose risks in the marketing of the

product; however, since the price cost of the product is only competitive with

other construction blocks in the market it should be of a good and sustainable

quality CHB.
 39

TECHNICAL STUDY

a. Selecting the Product

Concrete hollow blocks are well-known precast construction material

often used from building low-cost housing, interior walls and even high-rise

buildings. Due to CHB’s marketability the proponents opted to undertake to

manufacture CHB, taking into account the PDL as the primary beneficiary of

this study due to the CHBs marketability, availability or raw materials locally,

cheaper cost for its production and even with a minimum required capital.

The production of CHB can be undertaken either solely or through co-

partnership.

b. Manufacturing Process

The process of cement concrete hollow blocks involves mixing and

casting of blocks. The concrete mix, cement aggregate and sand should be

proportioned to gain the required strength of block conforming to the

standards. The factors like quality of raw materials, grading, homogenous

mixing, vibrio pressing and curing plays an important role in producing quality

of blocks. The course, fine and medium grade materials should be mixed in

the ration of 40:20:40 for obtaining better interlocking of grains. Vibration

 40

and pressing action together for the mixture varies depending upon the

grading of aggregate and capacity of press machine.

The process of manufacturing cement concrete hollow blocks

involves 5 stages:

1) Proportioning

2) Mixing

3) Molding

4) Curing

5) Drying

Proportioning. Proportioning is the determination of suitable amounts

of raw materials needed to produce concrete. Taking into account the ratio of

raw materials to be used such as cement, sand, stone chips/ gravel (optional).

Mixing. The primary objective of thorough mixing of cement, sand,

gravel, and water is to ensure that the cement- water paste completely

covers the surface of the mineral aggregates (sand, gravel). All the raw

materials including water are collected in a concrete mixer, which is rotated

for approximately 6 to 8minutes. The mixture of raw material may also be

done traditionally by hand using a shovel.

 41

Molding. The mixture of concrete is poured into the hollow block mold.

The molds consist of an outer mold box which contains several mold liners.

These liners determine the outer shape and inner shape of the block.

When the molds are full, the concrete is compacted by the weight of

the upper mold head coming down on the mold cavities. This compaction may

be supplemented by air or hydraulic pressure cylinders acting on the mold

head. Most block machines also use a short burst of mechanical vibration to

further aid compaction of the concrete. The compacted blocks are now

pushed down and out of the molds onto a flat steel pallet.

Curing. In this process the concrete hollow block is removed from the

mold. Curing of the concrete hollow blocks may take up to 24 hours in a

shelter away from winds and sun. The hollow blocks are cured for at least 21

days to permit complete moisturisation. The longer the curing time, the better

the product.

Drying. It is essential that after curing is over, the hollow blocks should

be allowed to dry out gradually so that the initial drying shrinkage of the

blocks is completed before they are used. Concrete Hollow Blocks are usually

dried for a about 7 to 15 days. This period of time will bring the blocks
 42

to the desire degree of dryness to complete their initial shrinkage. After

drying, concrete hollow blocks are now ready for use in construction work.

The process for the manufacture of cement concrete blocks is

shown below:

1) Preparation of raw materials and equipment to be used

2) Prepare the mix of concrete

 43

3) Create a hardened hollow block. In this procedure the mixture of

concrete is poured into the mold. Vibrate or stir the mold so that the mold

and concrete settle with each other and each the extreme ends. At the open

face of the mold, use a plank of plywood to scoop the excess mixture of the

concrete, run the plank of plywood across the open surface to level it

smoothly.

4) Curing and cubing

.
 44

c. Plant Size and Production Schedule

i. Plant Size

The production of CHB will only use concrete mixer, wheel borrows

and shovel. The Sakalam Enterprise will not utilize another special machinery

during its startup year. The use of concrete mixer alone may only need a little

space where it can be placed since the equipment is not big enough is size.

The propose site for Sakalam Enterprise in Barotac Viejo in the owned

property of one of the proponents is enough for the enterprise to operate.

Plant size for the enterprise to initially operate is not a problem at all, if later

there will be a need to expand, the proponents could agree to acquire a much

bigger space for the enterprise.

Hence, any person who wish to adopt this study may manage and start

a CHB business even in the free space of their home either be on their front

yard or backyard. They may use the basic tools in construction such as wheel

borrows, shovel, and molder the concrete mixer is not much of a priority need

for a small-scale business CHB since mixing of cement can also be done

manually.
 45

ii. Production Schedule

The Sakalam Enterprise will have an initial manufacture of CHB at one

of the properties owned by the proponent. In its initial phase, the proponents

will serve as the main workforce to establish stability and effective

management of the business.

Later on, the enterprise will employ at least 3- 4 workers for the

manufacture of CHB. One (1) worker will be in-charged administratively and

the other three (3) workers will do the labor work in the manufacture of CHB.

Each of the workers will be designated with a task particularly in

procuring the needed raw materials for the production of CHB until the actual

production of CHB from the mixing or who will be in-charged mixing the raw

materials, persons to be in-charge for the molding and delivery of the product.

Each of the workers will render at least 6 to 8 hours per day.

The proposed daily production of 500 CHB on its first year or a total of

182, 500 pieces of CHB per year. The gross profit/ sales for the initial year

will be Php 2,190,000.

 46

d. Machinery and Equipment

i. Concrete Mixer

It is a device that homogeneously combines cement, aggregate such

as sand or gravel, and water to form concrete. The mixer consists of a solid

mixing trough and alloy steel rotary mixing table, 4 vertical supports with foot

plates. The platform is adopted for service and working. To mix light weight

and high-density concrete with 0.5cbm per batch.

ii. Wheelbarrows with pneumatic wheel

The wheelbarrows shall be used in moving the aggregates such

as cement, sand, gravel, shredded plastic bottles and the

produced hollow blocks.

iii. Shovel

Shovel shall be used in putting the mixture to the molder.

iv. Molder

The molder is the most important part of block making. It shall be used

for the mixture to be compressed hence shaping the blocks.

 47

Table 5 will show the list of Machinery and it’s assumed cost

Machinery and Equipment Quantity Amount

Concrete Mixer: 10/7 cft with 5 HP 1 Set Php 25,000

motor, hydraulic hopper and road

wheels

Wheel borrows with pneumatic wheels 4 sets Php 10,000

Ram and Mould for hollow blocks 4 Sets Php 13,600

Shovel 4 Sets Php 8,000

TOTAL Php 56,600

All these machinery and equipment's are available in the local market.

e. Plant Location

The proponents consider the PDL of Barotac Viejo District Jail as their

primary beneficiaries for the project although the production site as already

identified to be within the properties of one of the proponents, the PDL may

also adopt this type of business upon their release as an ideal source of

income even in their own dwelling.

 48

A block maker when setting up a block yard, institutes contacts with

the construction material suppliers, retailers and sign-up a contract in order to

appoint them as order booking agents. Generally, construction and building

material supplier is the part of the whole chain, and brings together the

customers and suppliers. Sometimes the supplier has his own delivery

vehicles and in most of the cases, keeps arrangement with the commercial

vehicle operators, material manufacturers, and buyer, having a significance of

a pivoting point among them.

The proposed location for setting up construction hollow blocks making

unit largely depends on the availability of raw material and its transportation to

the factory at low cost; however, factors like availability of manpower, utilities

and easy access to the target markets should also be carefully examined. It

shall be located at Barotac Viejo, Iloilo.

The proposed location to be utilized for the production of CHB will be

renovated, including the putting of machinery and equipment needed before

the commencement of the production of CHB.

The proposed floor plan for
production of

To be developed
 49

f. Plan Layout

As what agreed upon by the proponents, the production and display

area of CHB shall be on the private owned property of one of the proponents.

The needed fixtures and installation will only be since said area site is already

utilized for the production of CHB. Below is the plan lay-out for the

manufacture of CHB. Below is the enterprise plan lay-out.

g. Building and Facilities

The proposed site at Barotac Viejo for the production and display of

CHB will only need a little renovation such as putting up another shed for

storage of cured concrete hollow blocks, securing the area by putting up

 50

fences, clearing the site are, adding an office, sanitary, plumbing works and

furnishing it with paint and coatings.

An assumed one week is allotted for the renovation of the

manufacturing site. The expected cost for renovation will be around Php

100,000 to Php 150, 000. Below is the budgetary requirement on the

expected costing for the renovation.

Table 6. Cost of Materials and Labor for Renovation of Site

Description Quantity Unit Cost Amount

Lumber 15 pcs Php 200 Php 3,000
Plywood 15 pcs Php 900 Php 13,500
PVC Pipes 8 pcs Php 1,300 Php 10, 400
Roofing 15 pcs Php 200 Php 3,000
Lavatory/ Basin 1 pc Php 5,000 Php 5,000
Electrical Wiring 80 meters Php 20 Php 1,600
Electrical Tape 3 pcs Php 25 Php 75
Paints 5 gallons Php 2,700 Php 13, 500
Nail 10 kilos Php 50 Php 500
Lights 15 pcs Php 88 Php 1,320
Cement 10 pcs Php 261 Php 2,610
Hollow Blocks 6’ 150 pcs Php 18 Php 2,700
Cyclone Wires 4 pcs Php 458 Php 1,832
4x4
Labor Php 20,000-
25,000
Miscellaneous Php 10,0000
Total Php 93, 512.00
 51

h. Raw materials and Supplies

The following are raw materials used in making concrete eco- blocks:

gravel/ stone (optional), sand, cement and shredded plastic bottles.

Gravel and sand can be purchased directly from the excavator or

quarry lease holder or supplier. The natural sand and stone crush of size 2

mm and below is used. It should be free from clay dust and deleterious

matters.

The recycled shredded plastic bottle can be gathered around the area

site and even around the municipality of Barotac Viejo as well as its nearby

towns.
 52

Portland Cement complying to Indian Standard grade 33, 43, and 53 is

widely used in the manufacturing of the hollow blocks.

It is proposed to have a local supplier for the three materials to avoid

any unknown event or uncertainties in procuring raw material as well as to

have a faster transaction and procurement and to keep the business

economically stable.

Table 7. Raw Materials

Raw Materials Quantity Amount

Cement 1 bag (50 kg) Php 200

Sand 4 Cu.m Php 1,365

Gravel (optional) 1/2 cu.m Php 899. 10

Recycled 1/2 bag 0

shredded

Plastic Bottles
Water Php 2,000

TOTAL Php 4,525.1

 53
i. Utilities

Water and Electricity. Water should be free from harmful matters to

concrete and reinforcement or matters likely to cost efflorescence in the

product.

Electrical Power Requirement of 25 HP for industrial purpose. Water

for making concrete should be free from acids, alkalis, oil, dissolved carbon

dioxide and decayed vegetable matter. Generally, water suitable for human

consumption is considered adequate for concrete mixing.

j. Waste Disposal

Although no solid, liquid or gaseous wastes are generated during the

manufacturing process of concrete hollow blocks, during the handling of

cement, stone aggregates and sand, dust particles flow in the air resulting in

higher level of suspended particulates matter.

To reduce the level of suspended particulates matter, different

methods could be used such as covering of mixing bins, using of exhaust fan,

sprinkling of water and use of dust collectors. A provision of dust collector

would further minimize the suspended particulates matter in the air and

improve working conditions in and around the manufacturing unit. The

 54

wearing of mask by workers to protect them from inhaling of dust particles is

also highly advised.

k. Production Cost

Construction hollow blocks business is dependent on the pricing

and margins given to builders, suppliers and retail customers. It also depends

on efficient supply of blocks to the customer and communication facilities

provided to the prospective clients, retailers and order booking agents.

The production of CHB by “Sakalam” Enterprise will be marketed

locally in Barotac Viejo as well as its nearby towns.

Table 8.
Prices of
Concrete 4” Hollow Proportion No. of HB
Hollow Blocks produced
Blocks
Bags of Ready Water Shredded
Cement Mix Needed Plastics
Sand (Liters) (Grams)
(Bags)
Class A 1 5 20 100 20pc.
Class B 1 10 40 200 40 pcs.
Class C 1 15 60 300 60 pcs
6”
Hollow
Blocks
Class A 1 5 20 100 15 pcs
Class B 1 10 40 200 30 pcs.
Class C 1 25 60 300 45 pcs.
 55
l. Labor Requirement

The proponents of this project will initially be the main workforce for the

enterprise including) three (3) to (4) PDL- workers. The PDL selected to work

for the enterprise will be those that are primarily recommended and chosen by

the jail administrator or warden of Barotac Viejo District Jail and preferably of

those with light offenses only. Each of the partners and labor

will be compensated according to the number of works rendered in compliance

with basic minimum wage pay in Iloilo City.

With the security consideration, the PDL workers will be

supervised by the personnel on lockdown (pol) who are off duty in a rotation

basis
 56
FINANCIAL STUDY

This chapter discusses the financial aspect of the study. In order for

the business plan to understand it needed money to start. To determine

whether the future industry will remain profitable through the existence of

competitors growing market demand and unforeseen economic condition, the

proposed project “Construction of Concrete Hollow Blocks” have been

formulated on the basis of in-depth research as to prospectively of industry

stakeholders and construction experts.

This chapter will evaluate the financial performance of Sakalam

Enterprise. Assumption regarding to the specific assumption relating to

individual cost are given under.

 57

A. Major Assumptions

Particular Assumption

Unit Sales 10% increase in sale for every piece

of CHB per year

Unit Selling Price Php .5 centavo increase in unit price per

year

Ending Inventory Ending inventory at 1,000 units (100

units increased in the following year)
Production The projected sales for the year +
estimated ending inventory -
beginning inventory
Direct Labor Php 490- 500 per person (3-4
workers)
Variable cost per piece Php 12 per piece of CHB
Depreciation Expense An assumed Php 15,000
Annual expense on facility/ Site Php 20,000
Facility Utilities expense Php 25,000
Licenses & permits Php15,000
Miscellaneous Expense Php 30,000
Payment for purchases Php 70% in cash 30%
accounts
payable- payable paid the following year
Initial Investment Php 200,000 per partner
Withdrawal of capital Each partner withdraws 50,000 to 100,000
per year with an increase of
25,00 per year per partner

Share in Net income Income is equally shared by the

partners or depending on each contribution
of partner.
 58
Total Project Cost

Cost of Machinery & Equipment Quantity Amount

Concrete Mixer: 10/7 cft with 5 HP motor, 1 Set Php 25,000
hydraulic hopper and road wheel
Wheel borrows with pneumatic wheels 4 sets Php 10,000
Ram and Mould for hollow blocks 4 sets Php 13,000
Shovel 4 sets Php 8,000
Delivery (Truck for deliveries) 1 Php 200,000
TOTAL Php 256,000

Cost of Raw Material

25 bags (1
Cement bag= Php Php 5,000
200)
Sand per cu.m Php 1,365
3 cu.m
Gravel (1/2 cum = Php 2,697.3
Php
899.10)
Shredded Plastic Bottles 0
Water cu.m Php 2,000
Php 11,062.3
TOTAL

Utilities and other miscellaneous

expense
3-4
Labor/ Wages Php 2,000
(Php 500)
workers
Facility utilities expense Php 25,000
Licenses&permits Php 15,000
Miscellaneous expense (Fuel) Php 30,000
TOTAL Php 72,000
 59

Cost of Materials and Labor for Renovation of Site

Lumber 15 pcs Php 3,000

Plywood 15 pcs Php 13,
500
PVC Pipes 8 pcs Php 10,
400
Roofing 15 pcs Php 3,000
Lavatory/ Basin 1 pc Php 5,000
Electrical Wiring 80 meters Php 1,600
Electrical Tape 3 pcs Php 75
Nails 10 kilos Php 500
Lights 15 pcs Php 1,320
Cement 10 pcs Php 2,610
CHB 6' 150 pcs Php 2,700
Cyclone Wires 4 pcs Php 1,832
Php 20,000-
Labor 25,000
Miscellaneous Php 30,000
Php 113,512
TOTAL

Php 448, 077

TOTAL PROJECT COST

B. Manufacturing Cost

COST OF MACHINERY&EQUIPMENT Quantity Amount

Concrete Mixer: 10/7 cft with 5 HP motor,

1 Set Php 25,000
hydraulic hopper and road wheel

Wheel borrows with pneumatic wheels 4 sets Php 10,000

Ram and Mould for hollow blocks 4 sets Php 13,000

Shovel 4 sets Php 8,000

Delivery (Truck for deliveries) 1 Php 200,000

TOTAL Php 256,000

 60

COST OF RAW MATERIALS

Cement 1 bag Php 200

Sand 4 per cu.m Php 1,365

Water cu.m Php 2,000

(the expense

for the actual

shredding of

Shredded plastic bottle recycled

plastic bottles

falls within

miscellaneou

s expense of

30,000)

TOTAL Php 11, 565

TOTAL MANUFACTURING COST PHP 15, 130

 61

C. Operating Expense

Utilities and other miscellaneous

expense

3-4 workers
Labor/ Wages Php 2,000
(Php 500)

Facility utilities expense Php 25,000

Licenses&permits Php 15,000

Miscellaneous expense (Fuel) Php 30,000

TOTAL Php 72,000

D. Schedule of Depreciation
 62

E. Projected Production

F. Projected Total Sales

 63

G. Statement of Cost of Goods Sold

STATEMENT OF COST OF GOODS SOLD

Year 1 Year 2 Year 3 Year 4 Year 5
Beginning inventory:
Purchase of Raw Materials 500,00 550,00 600,00
525,500 550,00
0 0 0
Direct Labor
520,00 520,000 520,00 520,00 520,00
Overhead: 0 0 0 0
Transportation/
Delivery
30,000 35,000 40,000 45,000 50,000
Cost of Goods Sold
1,050,0 1,110,0 1,115,0 1,115,0
1,080,500
00 00 00 00
 64

H. Cashflow Statement
 65

I. Partner’s Equity
 66

J. Projected Balance Sheet

 67

K. Projected Income Statement

 68

L. Financial Analysis

On Assets
Cost per unit Total cost Life Span Depreciation expense per
year
1 25,000 5 5,000
4 10,000 5 2,000
4 13,000 5 2,600
4 8,000 5 1,600
1 200,000 5 40,000
256,000 51,200

113,512 5 22, 702

TOTAL 73, 902 php

The units for the equipment and machinery for the manufacture/

production of concrete eco- blocks remain as is. The total acquisition cost of

the machinery and equipment is 256,00 php with and annual depreciation of

51,200. The enterprise will not increase its machinery and equipment since

they were purchased and are suitable for a long-term use. The Php 113,512

amount represent the computed cost for the renovation/ building necessary

facilities on the manufacturing site. The building renovation cost have an

estimated annual depreciation of 22,702 per year.

 69

On Sales Per Unit

Year 1 2 3 4 5
1,560,00 1,680,2 1,834,3 2,202,20
Sales 2,007,720
0 5 0 4 0 0
130, 000 134, 420 141, 180 148, 720 157, 300
Units produced Sale
pcs pcs pcs pcs pcs
Price 12 12. 5 13 13. 5 14
Operating 1,307,1 1,081,1 1,111,1 1,171,
1,141,151
Expense 5 5 5 155
5 5 5
Beginnin Php 2,442,69
g - 252,845 851, 940
1,576,125 4
inventory
Ending 1,576,12
5 3,473,73
9
Inventory 252,845 851, 940 2,442,694

The production of CEB on its first year will be 130,000 pcs with a sale

price of 12 php per piece. For the succeeding year it should be Sales less

operating expense = beginning inventory less ending inventory.

Initial Investment
Cost Remarks
Start- up cost 15,000 e.g cost to register the buiness
Working capital requirement for 1 year 448,077 Cost to operate
Fixed assests 369,512 Machinery&Site renovation
Initial investment of the 5
partners is at 200,000
amounting to 1M. The
TOTAL CAPITAL REQUIREMENT 832,589
remaining balance will be
used for nay miscellaneous
expense of the enterprise.
 70

SOCIO-ECONOMIC STUDY

Concrete Hollow blocks with disposable plastic have an important

place in modern building industry. They are cost effective and better

alternative to burnt clay bricks by virtue of their good durability, fire resistance,

partial resistance to sound, thermal insulation, small dead load and high

speed of construction. Concrete hollow blocks being usually larger in size

than the normal clay building bricks and less mortar is required, faster

construction is achieved.

All these years the smallest unit of construction has been red clay

bricks. However, due to use of fertile top and biofuel the use of red clay

bricks is being discouraged word over. The most used alternative material is

cement hollow blocks. These blocks are consistent and much better than clay

brick hence, ensuring stractural stability.

According to Bangko Sentral ng Pilipinas, the share of construction

industry to total Gross Domestic Product (GDP) has been steadily increasing.

The construction sector has been registered with a growth rate of 7.9%

according to NEDA Survey in 2008. Housing and construction are one of the

major drivers of growth in more than 40 allied industries and directly adds to

the construction hollow blocks industry.

 71

In addition, for the building of roads, flyovers and bypasses there is a

mass and consistent need of concrete hollow blocks across the county.

Various construction and real estate development projects are in progress

and are continuously being commissioned which will have high demand of

concrete blocks material all over the country.

Concrete hollow blocks are widely used in building activities such as

housing, construction of commercial complex, office premises, entertainment-

recreation- sports- complex, municipal corporation, streets and road

construction and development and industrial units.

The market of concrete hollow blocks would, therefore, be a big part of

the building industry because its application varies and applied widely.

A. Employment

This project highlights the importance of the PDL; hence, it is the

primary consideration of the proponents of this enterprise to consider the PDL

capacity to engaged in work i.e., to consider themselves as primary workforce

for the operation of the enterprise.

 72

For this matter, at least 2-3 workers will be employed and trained

during the initial start of the enterprise for the production and construction of

concrete hollow blocks, operation of the site unit as well as for the necessary

transport of the finished product. Additional PDL are to be employed

whenever the exigencies of work so require.

B. Taxes

The enterprise shall be formed as a Partnership or a profit-sharing

venture between its members. In Partnership, each of the member are

required to contribute their individual share for the operation of the business

enterprise.

Thus, 10% percentage tax shall be imposed on the business enterprise

subject to graduated tax rate of 0-35% on the individual income tax of the

members of the partnership.

C. Supply and Demand

The production of CHB is presumably projected up to 10%. In terms of

production of CHB, 500 pieces of CHB 4” will be produce during the initial

year of the enterprise; Year 2 will produce 517 CHB a day; Year 3 will be

producing 543 pieces of CHB a day; Year 4 will be producing 572 pieces of

CHB; and Year 5 will produce 605 CHB a day.

 73

ORGANIZATIONAL AND MANAGEMENT STUDY

A. Basic Consideration in Making the Organization

This chapter will tackle about the organizational arrangement of the

business enterprise. The management aspect will lay-down the duties and

responsibilities, flow of authority and manpower requirement of the enterprise.

This project is primarily intended for the welfare and development of

the PDL. This project seeks to uplift and affirm their worth, address their

individual needs, and promote appreciation of life and values. Through this

project, the PDL will be able to learn and enhance their skills, management

capacity as well as maintenance of employment opportunities.

This project also aims to advocate support groups and linkages as the

main thrust for the aftercare program of the Bureau. Through this project, the

Bureau is prepared to assume its role in the society- to promote productivity

and industrialization for the betterment of the PDL’s and the society.

B. Form of Ownership

The business enterprise shall be established as a Partnership; in

which partners contribute or pool money, skills, and other resources, aimed

for profit and loss sharing in accordance with the terms and conditions of the
 74

partnership agreement. In the absence of such agreement, partnership is

presumed to exist where the participants in the enterprise agree to share

risks and rewards proportionately.

The following are the disadvantages in forming a partnership:

1. Partnership has a limited of ten (10) years unless there is an extension;

2. It is subject to personal liability for the obligation of the association;

3. It has also a risk of loss due to incompetence or fraud of the partners;

and

4. Disagreements among partners may result the business to winding

up or a separate.

The following are the advantages in forming a partnership:

1. Easy to organize because only few people are handling

the organization;

2. Partners can contribute additional capital and other resources;

3. Less burden in terms of taxation and filing of returns;

4. Compared to corporation, it is less onerous;

5. Members can be utilized in the management of the products;

6. All partners are considered agents of the partnership;

7. Close supervision of all business activities because of the

involvement of the partners; and

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8. Combined talents, skills and knowledge and point of view of several or

all partners compose a talented business organization which will help

the industry succeed.

Below are also the two kinds of partnership: General Partnership and

Limited Partnership – including the advantages and disadvantages.

A. General

Partnership

Disadvantages:

1. Unlimited liability for partners;

2. Personal liability of a partner for the actions of unscrupulous partners;

3. Unstable business; partnership is dissolved if a partner dies or

withdraws;

4. Potential for disagreements which could lead to costly dissolution

B. Limited Partnership

A form of partnership in which one or more General Partners run the

business and those who only contribute money are called Limited Partners.

Limited Partners are liable only to the extent of their investment and my not

share in the management of the business.

Advantages:
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1. The main advantage over a General Partnership is that it permits

obtaining funds from investors who can participate in profits but are

shielded from any losses beyond their initial investment.

2. Investors have no say in the management of the partnership

Disadvantages:

1. Profits must be shared with other investors

2. Public solicitation of Limited Partners is limited and controlled by the

State Department of Corporations

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C. Organizational Chart

GENERAL MANAGER J/INSP RHOLYN B PASQUIN

ASSISTANT MANAGER J/INSP DESMAN C ONSAT

FINANCE&AUDIT OFFICER J/INSP RONALDO G D

HUMAN RESOURCE OFFICER SALES MARKETING OFFICER J/INSP JONA B GUA

J/INSP CARMELO G MALACAMAN
 78

D. Officers and Key Personnel- Duties and Responsibilities

a) General Manager

● Supervise the overall administration, operation and production of concrete

hollow blocks;

● Ensures product quality;

● Evaluate business procedure, plan, organize, direct and control all the

employees of the enterprise as well as their relationship to each other;

● Responsible in setting appointments and billing;

● Responsible for global and local marketing as mainstream for

possible expansion of livelihood program in the Jail Bureau.

b) Assistant Manager

● Alter the ego of the General Manager;

● Assist the General Manager in the implementation of plans, programs and

projects of the business enterprise;

● Perform other functions as directed by the General Manager.

c) Finance and Audit Officer

● Assist the General Manager on financial matters;

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● Maintain business bank accounts, payment processing, accounts

payable and accounts receivable;

● Maintain financial records of the pay and allowance of its personnel;

● Takes physical inventory of the properties and maintain property records.

d) Human Resource Officer

● Write job description, screen, interview, train and manage employees;

● Assume responsibility of personal records managements;

● Evaluate personnel system and standards relative to performance

appraisal, incentive benefits and awards.

e) Sales and Marketing Officer

● Conduct business strategies such as advertising, public relations,

marketing.
 80

E. Project Schedule/ Gantt Chart

PROJECT SCHEDULE
PROPOSED
ACTIVITIE S February March August Sept October
2022 2022 2022 2022 2022
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Presentation of
the Feasibility
Study
Preparation
and Data
Gathering
Presentation,
Analysis, and
interpretatio
n of data
Pre-oral
Defense
Final Defense
and Submission
of Feasibility
Study and
demonstratio n
of the
product
Secure
Clearances,
permit to
operate
business
registration with
the SEC and
BIR, and
application
of OR
Collection of
initial Capital
Refurbish of the
production site
and
procurement of
equipment and
ingredients
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APPENDICES

References

1. Anaman, K.A. and Osei-Amponsah, C. (2007) Analysis of Causality Links

between the Growth of the Construction Industry and Growth of the Macro-

Economy in Ghana. Construction Management and Economics, 25, 951-

961.

2. Ayalew et al (2106) The Future of Lean Construction in Ethiopian

Construction Industry

3. MSME- Development Institute (Br. DI) (2021) Project Profile on

Cement Concrete Hollow Blocks

4. Koski, John A. "How Concrete Block Are Made."

Masonry Construction, October 1992, pp.374-377

5. ASTM C 94 (1994), Standard test specification for ready-mixed

concrete, American Society for Testing and Materials, Philadelphia.

 82

Documentation:

Appendix A. Letter to the Warden

March 1,2022

Dear Sir,

May we request to train PDL to be involved on our proposes project called

“Making of Concrete Hollow Blocks with Shredded Plastic/ Concrete Eco-

Blocks”. This is in compliance with our mandatory requirements in our course,

Jail Officer Basic Course.

We are proposing a Feasibility Study on Concrete Hollow Blocks and as a

primary consideration of the proponents of this project is to take into account

the PDL capacity to engaged in work hence, we consider the PDL as our

primary workforce/ employee for the operation of the enterprise.

The proponents would like to request for your permission and approval.

JAIL INSPECTOR DESMAN C ONSAT

JAIL INSPECTOR CARMELO G MALACAMAN

JAIL INSPECTOR JONA B GUADALUPE

JAIL INSPECTOR RHOLYN B PASQUIN

JAIL INSPECTOR RONALDO B DELFIN

Students, JOBC Class 2021-01

83
 84

Appendix B. Articles of Partnership

ARTICLES OF PARTNERSHIP

of

KNOW ALL MEN BY THESE PRESENTS:

That we,

JAIL INSPECTOR DESMAN C ONSAT

JAIL INSPECTOR CARMELO G MALACAMAN

JAIL INSPECTOR JONA B GUADALUPE

JAIL INSPECTOR RHOLYN B PASQUIN

JAIL INSPECTOR RONALDO B DELFIN

are all Filipinos, of legal age, and residents of the Philippines, have on this

day, covenanted to establish a partnership, in accordance with the law of

Republic of the Philippines.

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AND WE HEREBY CERTIFY:

1. That the names and addresses of the respective partners are as follow:

Name Address

SAKALAM HOLLOW BLOCK ENTERPRISE

JAIL INSPECTOR DESMAN C ONSAT

JAIL INSPECTOR CARMELO G MALACAMAN

JAIL INSPECTOR JONA B GUADALUPE

JAIL INSPECTOR RHOLYN B PASQUIN

JAIL INSPECTOR RONALDO B DELFIN

2. That the name of this partnership shall be SAKALAM HOLLOW BLOCK

ENTERPRISE and it shall exist for ten (10) years from the execution of this

instrument, unless the partners mutually agree in writing to a shorter period.

Should the partnership be terminated by unanimous vote, the assets and cash

of the partnership shall be used to pay all creditors, with the remaining

amounts to be distributed to the partners according to their proportionate

share.

3. That the capital of this partnership shall be 1 Million Philippine Peso,

broken down in contributions as follows:

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Name and Partner Contribution

JAIL INSPECTOR DESMAN C ONSAT 200,000

JAIL INSPECTOR CARMELO G MALACAMAN 200,000

JAIL INSPECTOR JONA B GUADALUPE 200,000

JAIL INSPECTOR RHOLYN B PASQUIN 200,000

JAIL INSPECTOR RONALDO B DELFIN 200,000

4. The partnership shall maintain a capital account record for each partner;

should any partner's capital account fall below the agreed to amount, then

that partner shall (1) have his share of partnership profits then due and

payable applied instead to his capital account; and (2) pay any deficiency to

the partnership if his share of partnership profits is not yet due and payable

or, if it is, his share is insufficient to cancel the deficiency.

5. The purpose(s) for which this partnership is established (is/are) as follows:

a) Strengthen Socio-economic condition of PDL;

b) Enhance inmates’ livelihood skills;

c) Assessment of the impact of proposed livelihood program in the jail

6. The partners shall provide their full-time services and best efforts on

behalf of the partnership. No partner shall receive a salary for services

rendered to the partnership. Each partner shall have equal rights to manage
 87

and control the partnership and its business. Should there be differences

between the partners concerning ordinary business matters, a decision shall

be made by unanimous vote. It is understood that the partners may elect one

of the partners to conduct the day-to-day business of the partnership;

however, no partner shall be able to bind the partnership by act or contract to

any liability exceeding Pesos: fifty thousand pesos (P50, 000.00), Philippine

Currency, without the prior written consent of each partner.

7. That the profits and losses shall be divided among the partners pro rata, in

proportion to their respective contributions.

8. In the event a partner withdraws or retires from the partnership for any

reason, including death, the remaining partners may continue to operate the

partnership using the same name. A withdrawing partner shall be obligated to

give thirty (30) days' prior written notice of (his/her) intention to withdraw or

retire and shall be obligated to sell (his/her) interest in the partnership.

9. No partner shall transfer interest in the partnership to any other

party without the written consent of the remaining partner(s). The remaining

partner(s) shall pay the withdrawing or retiring partner, or to the legal

representative of the deceased or disabled partner, the value of his interest in

the partnership, or (a) the sum of his capital account, (b) any unpaid loans

due him, (c) his proportionate share of accrued net profits remaining
 88

undistributed in his capital account, and (d) his interest in any prior agreed

appreciation in the value of the partnership property over its book value. No

value for good will shall be included in determining the value of the partner's

interest.

10. A partner who retires or withdraws from the partnership shall not directly

or indirectly engage in a business which is or which would be

competitive with the existing or then anticipated business of the partnership

for a period of two (2) years in the Philippines where the partnership is

currently doing or planning to do business.

IN WITNESS WHEREOF, we have hereunto set our hands this

at , Philippines

JAIL INSPECTOR DESMAN C ONSAT

JAIL INSPECTOR CARMELO G MALACAMAN

JAIL INSPECTOR JONA B GUADALUPE

JAIL INSPECTOR RHOLYN B PASQUIN

JAIL INSPECTOR RONALDO B DELFIN

SIGNED IN THE PRESENCE OF:

 89

ACKNOWLEDGMENT

Republic of the Philippines)

) s.s.

Iloilo )

BEFORE ME, a Notary Public of Iloilo, Philippines, personally

appeared the above-named persons and made known to me that they are the

same person who executed the foregoing instrument which consist of four (4)

pages, signed by the parties on every page including their instrumental

witnesses, and they acknowledged to me that the same are their free and

voluntary act and deed.

WITNESSED MY HAND AND SEAL this day of

2021 at Tarlac, Philippines.

Notary Public

Book No

Page No

Series of
 90

PROPONENT’S PROFILE/ CURRICULUM VITAE

NAME: J/INSP DESMAN C ONSAT

DATE OF BIRTH: May 13, 1995

EDUCATIONAL ATTAINMENT: Bachelor of Science in Criminology

SCHOOL: King’s College of the Philippines

UNIT ASSIGNMENT: Assistant Warden, Tabaco City District Jail

ELIGIBILITY: RA 1080

DATE ENTERED SERVICE: May 1, 2016

 91

NAME: J/INSP JONA B GUADALUPE

DATE OF BIRTH: April 7,1970

EDUCATIONAL ATTAINMENT: Bachelor of Science in Criminology

SCHOOL: La Carlota City College

UNIT ASSIGNMENT: OIC, La Carlota City

ELIGIBILITY: RA 1080

DATE ENTERED SERVICE: February 28,1994

 92

NAME: JINSP RHOLYN B PASQUIN

DATE OF BIRTH: March 21, 1969

EDUCATIONAL ATTAINMENT: Bachelor of Science in Fishery

SCHOOL: Iloilo State College of Fisheries

UNIT ASSIGNMENT: OIC, Jordan District Jail

ELIGIBILITY: Penology officer

DATE ENTERED SERVICE: April 15,1994

 93

NAME: JINSP CARMELO G MALACAMAN

DATE OF BIRTH: October 29,1970

EDUCATIONAL ATTAINMENT: Bachelor of Science in Criminology

SCHOOL: La Carlota City College

UNIT ASSIGNMENT: OIC, Sagay City Jail

ELIGIBILITY: Penology officer

DATE ENTERED SERVICE: June 16, 1993

 94

NAME: JINSP RONALDO G DELFIN

DATE OF BIRTH: January 08, 1969

EDUCATIONAL ATTAINMENT: Bachelor of Science in Industrial Technology

SCHOOL: Sara Polytechnic College

UNIT ASSIGNMENT: Assistant warden, Barotac Viejo District Jail

ELIGIBILITY: Penology officer

DATE ENTERED SERVICE: April 15, 1994