CHAPTER III

TECHNICAL STUDY

After determining the market size and area, product demand and growth of the project,

the potential and technical feasibility of the project may be analyzed. This aspect discusses how

the products are to be produced, when these products are to be produced, how much it will cost

to produce the products, where to produce the products and what technologies or equipment to

be used.

OBJECTIVES

The objective of this aspect of the feasibility study is to determine whether the company

has necessary expertise, infrastructure and capital to develop, install, operate and maintain the

proposed system, and that by the established system, the business will be able to deliver the

goods at a profit.

Specific Objectives

 To describe the different process and procedures of the business

 To illustrate the overall layout of the facility

 To identify all the supplies, machines and equipment that will be used in the operation of

the business

 To determine where to acquire supplies and necessary utilities for the operation if the

business

 To identify the labor requirement and regulation of the business

 To determine the total estimated cost

PRODUCT COSTING AND PRICING

The proponents decided to sell empanada with a new variety of filling. It was planned to

have a sales price of P 19.00 and have an increase of 5% on the sales from starting the year.

BUSINESS PROCESS

The business process of the company will be composed of two main stages before it

reaches he company’ customers namely: manufacturing process and the selling and distribution

process to customers.

Manufacturing Process

The manufacturing process is one of the most critical part of a business; no process,

no product. This is the main reason why enterprises strive to have the best process possible

for their chosen goods and services. They invest on the best machines, and tools needed in

their production.

The production of our empanadas starts with purchasing the ingredients. Then, the team

will start preparing them, measures every ingredient that the team need. Next is molding the

dough and then cooking of the filling. When the dough and filling is ready, the team will fill the

dough with the filling. When it is done, the empanadas will be place in a container before

sending to the store.

Selling and Distribution Process

 The selling and distribution starts with frying of empanadas once it arrive in the store. As

soon as the customers buy the product, our employee will only reheat the empanadas. Then it

will be served with a good packaging.

BUSINESS LOCATION

Plant Location

MMK Wrap n’ Roll has chosen the location of its plant in Sta. Mesa Manila. In order to

have easier transportation, when delivering the products to the store. MMK Wrap n’ Roll have

also considered the location to have easy access to raw materials.

The plant location can also put up a store of its own for there are also markets in the

location.
Store Location

The store will be located at Lagoon of PUP Main, Sta. Mesa, Manila, Kalakhang Maynila.

The chosen location is highly accessible mostly to students of PUP. Convenience and budget

of the future customers comes into consideration for choosing its location.
Production Schedule/ Operational Process

Operational Process

A business or operational process is an organized set of activities or tasks that

produces a specific service or product.

Preparation and
molding of dough
(30 minutes)
Filling and Frying
sealing (5 minutes)
(10 minutes)
Preparation of
vegetable filling
(20 minutes)
 Sanitary Supplies

Unit Price per Quantity to be

unit purchased

Pot Holder 1 P45 4 pairs P180

Apron 1 150 4 600

Plastic gloves (box) 1 pack (100 45 12 540

pcs)

Hairnet 1 pack (12 50 2 100

pcs.)

Plastic Face Mask 5 50 3 150

Hand Sanitizer 1 175 24 4200

Kitchen Rags 5 125 6 750

Dishwashing 1 30 12 360
Sponge and Steel
wool

Dishwashing Liquid 1 35 12 420

Plastic Broom and 1 180 2 360

Dustpan
Trash bins 1 100 3 300

Garbage Bag (roll) 1 pack (200 289 2 578

pcs)
Mop 1 500 2 1000

TOTAL P1,774 9,493

Advertisement Expense
 Items Quantity Price Amount

Fliers 500 .60 300

Tarpaulin 3 550 1,650

Mini Tarpaulin 24 200 4,800

Table 16

LIST OF COOKING TOOLS AND EQUIPMENTS

PHOTOS NAME QUANTITY UNIT COST TOTAL COST

4 Liters Stand Mixer 3 P 1,795.00 P 5,385.00

Measuring Cup 2 P 40.00 P 80.00

Measuring Spoon 2 P 30.00 P 60.00

Stainless Round 2 P 100.00 P 200.00

Molds

Stainless Table 2 P 10,000.00 P 20,000.00

 1 P 12,550.00 P12,550.00
6 Cu. Ft. Chest

Freezer

2 Burner Gas Stove 1 P 1,070.00 P1,070.00

11kg LPG Tank and 1 P682.00 P 682.00

Refill

LPG Hose 1 P 150.00 P 150.00

Valve Regulator 1 P 450.00 P 450.00

Hose Clamp Set 1 P 30.00 P 30.00

Baking Sheet 10 P 80.00 P 800.00

13 x 18

Double Electric Deep 1 P 5,800.00 P 5,800.00

Fryer

Empanada Warmer 1 P 8,500.00 P 8,500.00

Stainless Steel Stock 1 P 850.00 P 850.00

Pot Steamer

Kitchen Stainless 5 P 300.00 P 1,500.00

Steel Bowl

Industrial Plastic 2 P 2,000.00 P 4,000.00

Storage Bins

Stirring Spoon 2 P 100.00 P 200.00

Knives 2 P 250.00 P 500.00

Tongs 2 P 150.00 P 300.00

Wooden Rolling Pen 2 P 100.00 P 200.00

Totals P 63,037.00

Table 2

Office Supplies

Photo Name Quantity Unit Total

Price Cost
Ballpen 10 P7 P 70

Log Book 2 90 P180

Total P250

Table 4

Sanitary Supplies

Photo Name Quantity Unit Cost Total Cost

Pot Holder 4 pairs P45 P180

 Apron 4 150 600

Plastic gloves 12 45 540

(box)

Hairnet 2 50 100

Plastic Face 3 50 150

Mask

Hand Sanitizer 24 175 4200

Kitchen Rags 6 125 750

Dishwashing 12 30 360
Sponge and
Steel wool

Dishwashing 12 35 420

Liquid

Plastic Broom 2 180 360

and Dustpan

Trash bins 3 100 300

Garbage Bag 3 289 867

(roll)

Mop 2 500 1000

TOTAL P1,774 P9,493

 Table

Furnitures and Fixtures

Furniture and Fixtures

Photo Item Quantit Price Amou Estimate Depreciati

y nt d Useful on
Life Expense
Stove 1 1 500 1 500 10 150

Table 4 800 3 200 10 320

Chair 4 500 2 000 10 200

Exhaust 1 650 650 10 65

Fan

Fire 1 750 750 10 75

Extinguish
er

Refrigerat 1 10 500 10 500 10 1050

or
 Air 1 15 000 15 000 10 1500
Condition

Cabinet 1 1 000 1 000 10 100

Stand Fan 3 1 300 3900 10 390

Total P38,50 P3850

0

Table 3

RAW MATERIALS FOR DOUGH

PHOTOS NAME QUANTITY UNIT COSTS TOTAL COSTS

All –purpose 1 sack P 850.00 P 850.00

flour (25 kilos)

Salt 500 grams P 45.00 P 45.00

 Butter 35 pieces P 40.00 P 360.00

Egg 2 tray P 185.00 P 370.00

Fresh Milk 1 liter P 85.00 P 85.00

Sugar 1 kg P 35.00 P 35.00

Total P 1,240 P 1,745.00

Table 4

RAW MATERIALS FOR FILLING

PHOTO NAME QUANTITY UNIT COST TOTAL COST

Munggo 10 packs P 38.00 P 380.00

Malunggay 10 bundles P 10.00 P 100.00

Squash 10 kg P 25.00 P 250.00

Sugar 5 Kg P 35.00 P 175.00

 Cooking Oil 10 bottles P 20.00 P 200.00

Condensed Milk 5 cans P54.50 P272.5

Total P 182.5 P 1,377.5

Table 5

DELIVERY EQUIPMENT

PHOTO NAME QUANTITY UNIT COSTS TOTAL COSTS

Delivery Sidecar 1 P 35,000.00 P 35,000.00

Total P 35,000.00

EMPLOYEES UNIFORM

The owner

is obliged to

wear a whit

collared polo

with the MANAGEMENT UNIFORM logo of

EMPLOYEE UNIFORM

business on the left chest of the shirt paired with any

pants and shoes except on the given wash day. The employees would be wearing a simple

white t-shirt with the logo of the business on the right chest except on the given wash day.

UTILITY REQUIREMENTS

Table

Utilities Monthly Cost Annual Cost Supplier

Electricty P 5000.00 P 60,000.00 Meralco

Gas (LPG) 3,350.50.00 P 40,206.00 Seaoil and Gasul

Diesel 500 P6,000 Shell

Water 950.00 P 11,400.00 Manila Water

Total P9,800.50.00 P 117,606

Salaries and Wages

Position Number of Number of Salary and Number of Monthly Annual

Working Working Wage per Personnel Salaries Salaries
Days Hours Employee and and
(Weekly) Wages Wages
Direct 6 8 537 2 25,776 309,312
Laborer-
Empanada
Laborer
Direct 6 8 537 2 25,776 309,312
Laborer –
Stall
Keeper
Indirect 6 - 200 1 4,800 57600
Laborer
Total 6 1274 4 56,352 676,224

DIRECT LABOR REQUIREMENTS

 People are considered to be the lifeblood of business organization. They are very important

for the cooperative effectively and efficient. MMM Wrap n’ Roll will need 4 employees. 2 of them

will be placed on the store and 4 of them will be working on the manufacturing site to perform

the necessary tasks up to the completion of foods.

WORK SCHEDULE

Table

Personnel Number of Working Number of Days Day off

Hours a Day Working in a Week

Worker 8 6 Sunday

Stall Keeper 8 6 Sunday

CHAPTER IV

MANAGEMENT AND LEGAL STUDY

 Management is a dynamic life-giving element of a business. It plays an essential role in

the business’ growth and development. In order for the business to run smoothly and properly,

the management sets standards, policies and procedures that will aid in achieving its company

goals and objectives. As a discipline, management comprises the interlocking functions of

planning, organizing, commanding, controlling, and directing the firm's resources.

Organizational rules, policies and procedures are discussed here in the management aspect of

the study which includes the form of ownership of the business, organizational structure,

manpower requirements and legal requirements.

The objective of the management aspect of a feasibility study is to determine effective

options for organizational setup and the qualifications of the individuals who will run and operate

the business. On the other hand, the legal aspect of the study determines if the business will

meet all the legal and ethical requirements before it will operate. These aspects will determine

the successful realization of the project study.

FORM OF OWNERSHIP

The project will adopt a sole proprietorship kind of business organization. Sole

Proprietorship is the simplest among the other forms of business. It undergoes simple

procedures when setting up the business and only includes nominal costs.

MISSION

Our mission is to continuously offer unique flavor of empanada. And as we aim to provide

customer satisfaction at an affordable price, we are committed to offer only the best and filling

merienda snack on the go.

VISION

Our vision is to become the leading and distinct brand that sells fresh, traditional and

homemade empanadas while creating brand awareness and through word of mouth, social

media platforms, and even related promotions for the next 2 to 3 years,.
CORE VALUES

The principles and ideals that harmoniously bind the organization and the customer, employees

and society:

We provide exceptional customer service that meets the needs of our customer. We create

solutions by carefully listening to their needs.

 Social Responsibility

Also, we are concerned and responsible in our society

 Transparency/Integrity

To will provide information needed/required in a manner that demonstrates reliability and

honesty in all aspects. We are willing to admit our mistakes and appreciate feedback.

 Quality

To offer healthy and affordable empanadas to our customers.

 Customers

To provide goods and services that meet our customer expectation.

 Provide consistent quality of products and services

To be consistent on the services and quality provided from the start of the business.

 Develop Morally and Ethically upright employees

To have a well-trained and skilled employees in the business operation.

 Sustainability

To operate carefully with sound balance between man, environment and company.

 Innovation

We permanently upgrading and improving knowledge and expertise about our business

and sharing it to our customer.

 Passionate to fulfill its customers

 Carry out duties with commitment, education and professionalism

  Coordination in the organization.

CAPITALIZATION

The project will operate after it has compiled all the necessary documents and technical

requirements needed to operate and engage in this type of business. The starting capital of the

business will be P 700,000.00

ORGANIZATIONAL CHART

Manager/Owner

Manufacturing Selling
Department Department

Empanada Empanada
Seller 1 Seller 2
Maker 1 Maker 2

The business chose to use a simple type of business structure. This structure is the

most common in smaller organizations and is best used to solve simple tasks. It is particularly

useful for new business as it enables the owner to control growth and development.

MANPOWER REQUIREMENTS

POSITION JOB DESCRIPTION JOB SPECIFICATION

Manager  Responsible for planning, directing  Has knowledge and

and overseeing the operations and experience in business,

fiscal health of a business. supervision, and

 Responsible for overseeing and management.

leading the work of employees.  General knowledge of

  Maintains staff by recruiting, selecting, various employment laws

orienting, and training employees; and practices and

maintaining a safe, secure, and legal employee relations.

work environment; developing  The Owner will be the

personal growth opportunities Manager.

Empanada Maker  Responsible for preparing  At least high school

Empanadas. graduate

 Responsible for cleaning and  18 years old and above

sterilizing the tools and equipment.  Hardworking and fast

learner

Stall Keeper  Responsible for serving the  At least high school

customers’ order and manning the graduate

customer.  18 years old and above

Hardworking and fast learner