Date Started: __________________ Score: ___________

Date finished: __________________

PRODUCTION STUDY
TECHNICAL ASPECT

1. What we want to do

2. How we do it

a. Production process. Enumerate the step by step procedure of producing the

product/service.

b. Raw Materials/Materials needed

Items and specifications Quantity Price/unit Total cost

Fruits and vegetables 60 Kg Php. 15,000
Pork 70 Kg Php. 15,400
Beef 55 Kg Php. 17,600
Poultry 45 Kg Php. 6,750
Fish 40 Kg Php. 4,000
Total --------------------------- ------------------ ----------- Php. 58,750

c. Tools & Equipment

Items and specifications Quantity Price/unit Total cost

1. Tools
Measuring tools 2 Set Php. 5,000
Knives 1 Set Php. 5,000
Cake decorating tools 5 Set Php. 10,000
Kitchen cutleries 5 Set Php. 15,000
Total -------------- --------------- Php. 35,000
---------------------
2. Equipment
Stove 5 Php 9,000 Php. 45,000
17

Deep-fryer 4 Php 7,500 Php. 30,000

Page

Slicers 3 Php 5,000 Php. 15,000

Coffee Brewer 4 Php 35,00 Php. 140,000
 Microwave 5 Php 6,000 Php. 30,000
Total -------------- --------------- Php.260,000
-------------------
3. Machineries
Oven 3 Php 35,000 Php.105,000
Freezer 4 Php 19,000 Php. 76,000
Refrigerator 5 Php 21,000 Php. 105,000
Grilling 6 Php 25,000 Php. 150,000
Total ------------------- -------------- ---------------- Php.436,000

d. Labor. What wage rates will be paid to employees? What is the basis/justification for
this wage rate?

e. What is the factory overhead expenses you will incur?

Items Value (per month)

Electricity Php 71,000
Water Php 35,000
Maintenance of equipment Php 60,000
Transport of raw materials Php 25,000
Insurances Php 49,980
Total Php. 240, 980

f. What are other fixed expenditures you will incur?

Items Value
Aircon Php. 50,000
CCTV Php. 42,000
Security Alarm Systems Php. 20,000
Kitchen units Php. 150,000
Flat screen tv Php. 55,000
Total Php. 317,000

g. What is the depreciation cost of the fixed expenditures?

Items (from c.3) Periodic /Annual Depreciation

Oven Php. 13,125
Freezer Php. 7,600
18

Refrigerator Php. 8,750

Page

Grill Php. 9,999.96

Total Php. 39,474.96
 h. Plan for maintenance and repair

i. Sources of equipment

j. Total Production Cost

Items Value
1. Raw materials/month Php. 31,300
2. Tools, Equipment Php. 295,000
3. Machineries Php. 436,00
4. Factory overhead expenses per Php. 260,441.67
month
5. Direct labor/month Php. 220,220
6. Other fixed expenses Php. 317,000
Total Production Cost Php. 1,559,961.67

References

http://www.togetherworks.org.uk
http://www.readyplanning.com/how_to_plan/feasibility_how_to.htm
Gittinger, P.J. 1982Economic Analysis of Agricultural Projects
Iñigo, C.E. Management for Filipinos. Quezon City

19
Page
 PERIODIC/ANNUAL DEPRECIATION

OVEN
QUANTITY: 3

D= 35,000 - 0 = Php. 4,375 x 3 = 13,125

8 years

FREEZER
QUANTITY: 4

D= 19,000 - 0 = Php. 1,900 x 4 = 7,600

10 years

REFRIGERATOR
QUANTITY: 5

D= 21,000 - 0 = Php. 1750 x 5 = 8,750

12 years

GRILL
QUANTITY: 6

D= 25,000- 0 = Php. 1,666.66.66 x 6 = 9,999.96

15 years

20
Page