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CHAPTER 4 OPERATIONS AND PRODUCTIONS PLAN Operation is the core of a company. This is where the “how” of the business lies. Everything else depends on the operation of the company. On the other hand, production is the act of manufacturing the product offered by the company. In the production, the quality and supply of the product must be maintained by the company. This chapter focuses on the operation and production plan of the business. It will discuss matters such as the raw materials used, machineries and equipment needed, and the way of turning inputs into outputs. I. BUSINESS PROCESS A. Plant Location Carbon Plus Corporation plant, together with the main office building will be located at Brgy.Bocohan, Domoit, Lucena City, Quezon. The total land area of the proposed location is 3,000 sq. meters. The location will suit the business’ operations for Quezon is one of the top coconut producing regions, thus making raw materials readily available. It will also help in cutting down the transportation cost in purchasing materials. It will also help the company in its business activities, transaction and communication. The location is along the roadside and the supplier’s and buyers will have no problem looking for the business plant.
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Page 1: Chapter 4

CHAPTER 4

OPERATIONS AND PRODUCTIONS PLAN

Operation is the core of a company. This is where the “how” of the business lies.

Everything else depends on the operation of the company. On the other hand, production is the

act of manufacturing the product offered by the company. In the production, the quality and

supply of the product must be maintained by the company.

This chapter focuses on the operation and production plan of the business. It will discuss

matters such as the raw materials used, machineries and equipment needed, and the way of

turning inputs into outputs.

I. BUSINESS PROCESS

A. Plant Location

Carbon Plus Corporation plant, together with the main office building will

be located at Brgy.Bocohan, Domoit, Lucena City, Quezon. The total land area of

the proposed location is 3,000 sq. meters. The location will suit the business’

operations for Quezon is one of the top coconut producing regions, thus making

raw materials readily available. It will also help in cutting down the transportation

cost in purchasing materials. It will also help the company in its business

activities, transaction and communication. The location is along the roadside and

the supplier’s and buyers will have no problem looking for the business plant.

Page 2: Chapter 4

B. Building Program

Carbon Plus Corporation plans to build a two-storey administrative

building with 150 sq. meters of floor area. Adjacent to it, the company will build a

three-storey factory building with 2500sq. meters that will cater to the production

and business processes. The building program will also include the necessary

areas that will cater to the needs of employees and suppliers.

1. Administrative office

This office will cater to the administrative personnel, executives, or

staffs who are responsible for management and administration of corporate

roles in the company. The human resource manager will also be in here.

Whenever there are inquiries from outside parties, this office will be in

charge.

2. Executive Office

This area will be the main office of the board of directors. Important

meetings will be held here. It is the private office of the company exclusive

for the Chief Executive Officer (CEO) and the other officers.

3. Finance Department

This is where cash receipts and disbursements take place. Other

financial information/problems are also discussed in this department such as

budgets and other concerns.

Page 3: Chapter 4

4. Accounting Department

Accounting and related matters are discussed and performed in this

department, from bookkeeping up to the preparation of annual financial

statements.

5. Marketing/Sales Department

Sales and marketing matters are discussed in this department.

Forecasting, budgeting, product improvements and monitoring of sales are the

common function in this department

6. Conference Room

All meetings will be discussed in this room. This is where

presentations, proposals and decision-making of the company will take place.

Special events such as seminars and trainings can also be accommodated by

this room.

7. Locker Room

This is the room designed for factory employees. In here, they can

change their clothes to what is required, take their breaks, attend to their

personal needs and hygiene, and store their things like bags, shirts and etc.

Page 4: Chapter 4

8. Comfort Room

Three comfort rooms will be built in the company. One will be for the

factory building and the two will be in the administrative building. Distinction

of the comfort room will be placed, one for male and the other for female.

9. Kitchen/Pantry

This area serves as food storage for employees as well as dining area

for employees and other guests or people transacting business with the

company.

10. Guard House

This is the place for company’s security guards. Is will be placed

outside the factory building and restrict unauthorized persons from entering

the company.

11. Parking Space

This area is for the company supplier/employees’ vehicles. It is

constructed for the convenience and safety of every vehicle. In here, there will

be a specified space for the company trucks and other vehicles.

12. Laboratory

This will be utilized by chemists and other experts in improving the

products. This is the area of mixing and will serve as the office of the

Page 5: Chapter 4

corporation’s chemist. This area will be restricted to other employees unless

they are requested therein.

13. Operations Office

This office involves the people who are responsible for the operations

of the company which includes the production and supervision of factory

employees. It provides areas to facilitate the normal operation process of the

business.

14. Raw Material Storage Room

This is the room used to store the raw materials and supplies used in

the production. Special equipments used in storing will be placed in here.

15. Cooking Area

This is the area designed to cook the coconut shells. Special

Equipments needed in cooking will be placed in here.

16. Oxidizing Area

This is the area designed to let the coconut shells be steamed. Special

equipment needed in the process are in here.

17. Cooling Area

This is the area designed to cool down the carbon.

Page 6: Chapter 4

18. Packaging Area

This is the area where the carbon is packed and sealed.

19. Finished Product Storage Room

This is the area where ready-to-deliver products are kept for a while

before they are sold.

II. TRANSACTION PROCESS

A. Board of Directors and Shareholders

1. Annual Election

The board of directors shall have an annual election and shall exercise

and follow all regulations and provision made by law. Those elected will do

the tasks which are laid up for them.

2. Quarterly and Urgent Meetings

They shall hold their meeting quarterly to discuss on matters regarding

the operations and management of the company. Any urgent meetings made

must be notified to all the board members. When the board will make a

decision, it must first be agreed by the quorum.

Page 7: Chapter 4

3. Dissemination of information

All information and decisions made shall be disseminated to all board

members and shareholders, if applicable. These information and decisions

made shall also be recorded in minutes of meetings and other documentary

form and copies shall be given to proper persons.

4. Stock Certificates

The shareholders will be given a certificate of stock and shall have the

right to vote on elections.

5. Shareholder Participation

The company exercise transparency to its shareholders. Thus, the

shareholders shall be notified about any changes, improvements, and situation

in which the company is experiencing. Also, the company shall be open to

hear the shareholders voices regarding matters about the company.

6. Dividends

The shareholders would be given dividends depending on the profit of

the business and this would be decided by the board of directors.

Page 8: Chapter 4

B. Suppliers

1. 1-year Contract

Carbon Plus Corporation would scout probable suppliers that would

give the company the satisfaction and quality operations. Once the company

had chosen the suppliers, they would bind in a contract for 1 year that would

entitle the supplier to supply the needs of Carbon Plus Corp. This would give

the company the assurance that the needs would be provided. The agreement

of the contract would include the amount of the products to be purchased that

would be based on an arm’s length transaction of both parties. It would also

include the time purchases would be made. Also, the term of the contract can

be renewed to another 1 year or more depending on the satisfaction of each

party on the said agreement.

2. FOB Destination

Carbon Plus Corporation would purchase the supplies and inventory

may it be direct or indirect materials every month and that the term of the

delivery would be FOB Destination.

C. Customer

1. Trade Discount

Carbon Plus Corp. may grant trade discounts to regular buyers of the

products. These discounts may come in any percentage depending on the

quantity purchased. Regular buyers are those that regularly buy products in

Page 9: Chapter 4

big quantities and have developed a buyer-seller relationship for not less than

six months. The management will be the one in charge in deciding discounts.

2. Cash discounts

Cash discounts are discounts given to customer who have outstanding

accounts receivable balances in order for them to pay their debt as early as

possible. The discounts will be decided by the management, which will be

based on the amount of debt.

3. Delivery Set

The corporation will be the one in charge of the delivery of products to

the consumer unless there is a separate agreement. The delivery will be made

during Mondays, Wednesdays and Fridays so as to maximize the delivery

capacity of the trucks and manage the distribution costs properly.

4. Terms of Payment:

a. Cash on Delivery

The corporation, during sales transactions will accept bills or cash

that is legal. They may come in any denomination as long as the amount

is fit to what is agreed.

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b. Accounts Payable

The corporation may also sell products and receive the payment in

a future date. Only regular customers will be allowed to pay in this form.

Interest may also be charged as may deemed fit by the management.

c. Notes Payable

The corporation will accept any note regarding the payment of the

debt. Only regular customers will be allowed to pay in this form. The

management will still make a decision before they accept the note.

Interest payments are charged as may deemed fit by the management.

Collateral may also be a requirement depending on the amount of the sold

products.

5. Deals by Sales Agents

The corporation will hire various sales agents that will be sent on the

field every day. They will be the ones in charge of getting new customers and

make arrangements for the customers. Sales agent will be the one to contact

the main office regarding the contracts and arrangements made.

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III. FACILITIES AND EQUIPMENTS

Office tables

Fig. 4.1 Office tables

Desk Phone

Fig.4.2 Desk phone

Fax Machines

Description: Table WD POLAR CTR

80.5 inches

Source: NeswoodFurnitures

Price: Php 6000

Quantity: 16

Total: Php96,000

Description:

Office Phone Orbita 8007

Features:

Unique panel, can print

hotel logo ,calling instructions,

room service etc

Message Waiting lamp

10 direct dialing key for

reception, business center,

laundry, room service etc.

Source: Abenson

Price: Php1800

Quantity: 6

Total: Php 10,800

Description: HP Fax 910

ITU Group 3 fax standard Error

Correction Mode (ECM)

Source: Abenson

Price: Php4000

Quantity: 1

Total: Php 4000

Fig. 4.3 Fax machine

Page 12: Chapter 4

Apple Computers

Fig. 4.4 Apple computers

Cash Register

Fig. 4.5 Cash register

Computers

Description: I-mac

21.5-inch (diagonal) LED-

backlit display with IPS

technology; 1920-by-1080

resolution with support for

millions of colors

Source: Apple

Price: Php60000

Quantity: 1

Total: Php 60000

Description:

Brand:Sharp

model: XE-A402 Cash

Register

2 LED (one operator & one

customer)

Source: Abenson

Price: Php25000

Quantity: 2

Total: Php 50000

Description: Dell™ OptiPlex™ GX620

Intel® Pentium® or

Celeron®processor

533-MHz and 667-MHz DDR2

SDRAM

Source: SM Megamall

Price: Php 25000

Quantity: 5

Total: Php 125000

Fig. 4.6 Computer set

Page 13: Chapter 4

Conference Table

Fig. 4.7 Conference table

Projector

Fig. 4.7 Projector

Air Conditioning Unit

Fig. 4.8 Air Conditioning Unit

Description: YA107 modern new office

furniture conference table

Wood

Color: Zebra-striped

Source: NeswoodFurnitures

Price: Php35,000

Quantity: 1

Total: Php 35,000

Description: Sharper Image EC-PJ10

Projector

9.5in. x 9.1in. x 13.9in.

(24.13cm x 23.11cm x

35.31cm)

Source: Abenson

Price: Php 20,000

Quantity: 1

Total: Php 20,000

Description:

KOLIN A/C KAG-250ME

17 x 26 x 30.5 inch

e-series mechanical type

Source: Abenson

Price: Php 20,000

Quantity: 8

Total: Php 160000

Page 14: Chapter 4

Water Dispenser

Fig. 4.9 Water Dispenser

Walkie Talkie

Fig. 4.10 Walkie talkie

Filing Cabinet

Description: Oasis Aquarius

Refrigerant: R-134A (CFC Free)

Hot Water: 82-90 °C

Cold Water: 3-10 °C

Source: Metro Gaisano

Price: Php 9000

Quantity: 2

Total: Php 18000

Description: T8 walkie talkie

PMR446 radios - license free

Up to 10km range (subject to

terrain and conditions)

Rechargeable NiMH batteries

(supplied)

Source: Abenson

Price: Php 2600

Quantity: 1

Total: Php 2600

Description: Kefeiya White Steel Filing

Cabinet Specifications KFY-B-

02

Metal

H720 X W460 X D620mm

Source: NeswoodFurnitures

Price: Php 8000

Quantity: 5

Total: Php 40000 Fig. 4.11 Filing cabinet

Page 15: Chapter 4

Steel Locker

Fig. 4.12 Steel locker

Printer

Fig. 4.13 Printer

Other Factory Furniture and Equipment

Furniture/Equipment Quantity Price

Total

Refrigerator 1 14,700 14,700

Fire Extinguisher 4 2520 10080

Couch 4 8500 34000

Clock 5 500 2500

Push Cart 3 3200 9600

Monoblock Chairs 50 100 5000

Monoblock Tables 10 250 2500

Total 78380

Description: Penco Vanguard Assembled

Lockers 1 Tier x 3 Wide

12/36''W x 18''D x 60''H

Source: NeswoodFurnitures

Price: Php 7500

Quantity: 3

Total: Php 22500

Description

Features

Brand name: Canon

Model PIXMA MG6270

high-speed printing

copying, scanning and wi-fi

ready

Price Php 11995.00

Quantity 2

Total Php 23990.00

Table 4.1 Other Factory Furniture and Equipment

Page 16: Chapter 4

Other Office Supplies

Office Supplies

Item Unit Cost per Unit Quantity Total

Bond Paper (short) Ream 180 10 1,800

Bond Paper (long) Ream 200 10 2,000

Ballpen Box 50 15 750

Brown Envelope (short) Piece 5 50 250

Brown Envelope (long) Piece 7 50 350

Official Receipt Booklet 35 30 1,050

Columnar Book Piece 30 30 900

Fastener Box 25 20 500

Stapler Piece 65 15 975

Puncher Piece 45 15 675

Paper Clip Box 10 10 100

Scissors Piece 35 10 350

Staple Wire Box 15 10 150

File Case Piece 10 100 1,000

Marker Piece 35 10 350

Scotch Tape Piece 15 15 225

Time Card Box 35 10 350

Ledger Piece 2.5 50 125

Log Book Piece 55 7 385

Computer Ink Piece 450 10 4,500

Packaging Tape Piece 34 320 10,880

Big Scissors Piece 135 10 1,350

Cutter Piece 40 10 400

Packaging Stapler Piece 235 5 1,175

Total 30,590

Table 4.2 Other office supplies

Page 17: Chapter 4

IV. PRODUCTION PROCESS

A. Preparation

Before cooking the coconut shells, the coconut meat should be thoroughly

removed, then rinsed with sterilized water to completely clean it. Afterwards, the

shells are placed in a rotary dryer, a drying equipment with humidity or

granularity which functions with reasonable structure, high efficiency, and low

energy consumption, to remove water from rinsing and further moisture contents.

B. Carbonization of the Coconut Shells

When the coconut shells are already free from moisture and residues, these

are placed in a Carbonization kiln, a machine used to raise materials to a high

temperature in a continuous process. Set the temperature at 300°C which will

gradually result to breakdown of the shell to ashes. The spontaneous breakdown

increases the temperature to 400°C, then to 500°C which would give the ideal

outcome. Maintain the recommended temperature range and burn continuously

for four (4) hours or until the coconut shells turn into ash.

Carbonization

temp

Chemical analysis of charcoal Charcoal yield

based on oven

dry shells

°C % of fixed

charcoal

% volatile

material

(0% moisture)

300 68 31 42

500 86 13 33

700 92 7 30

Table 4-3 Comparison of the outcomes of different carbonization temperature

Page 18: Chapter 4

Low carbonization temperatures give a higher yield of charcoal but this

charcoal is low grade, is corrosive due to its content of acidic tars, and does not

burn with a clean smoke-free flame. Good commercial charcoal should have a

fixed carbon content of about 75% and these calls for a final carbonising

temperature of around 500°C.

C. Cooling of the Carbon

After cooking the coconut shells, the charcoal is sent to the cooling area. It

must be cooled down first before further processing for about an hour since it

radiates a substantial amount of heat long after the fire has been extinguished, and

if not taken care of properly can rekindle a fire that is thought to be completely

extinguished and can pose a fire hazard. It is also done after the steam activation

of the charcoal.

D. Steam Activation

The coconut shell charcoal is activated by reaction with steam at a

temperature of 900oC to 1100

oC under controlled atmosphere in a rotary kiln for 3

hours. The reaction between steam and charcoal takes place at the internal surface

area, creating more sites for adsorption. The temperature factor, in the process of

activation is very important. Below 900oC the reaction becomes too slow and is

very uneconomical. Above 1100oC the reaction becomes diffusion controlled and

therefore takes place on the outer surface of the charcoal resulting in loss of

charcoal.

Page 19: Chapter 4

E. Grinding and Pulverizing

The carbon is now placed in a jaw crasher, with the aid of the vibrator

feeder, equipment for moving small objects, for crashing. It is natural to produce

different sizes of carbon, and shall be segregated into relative sizes by the sieving

machine. The machine classifies materials by separating them by particle size

through a screen mesh. Using a combination of horizontal and vertical movements

by means of a vibratory motor, they spread the material over a screen in

controlled flow patterns and stratify the product.

V. FACTORY MACHINERIES

Fig. 4.14 Rotary Dryer

Description Brand Name: Shanghai Vostosun

Model: 1.5×12-18

Diameter(mm): 1500

Volume (m3) : 21.2

Source: SHANGHAI VOSTOSUN INDUSTRIAL CO., LTD ,

China

Price Php 9500000.00

Quantity 1

Total Php 950000. 00

Page 20: Chapter 4

Fig.4.15 Carbonization Kiln

Description Brand Name: Vesta

Model: X-107B

Capacity volume (m3) : 21

Source: Vesta Kiln and Furnaces

Price Php 700000.00

Quantity 2

Total Php 700000. 00

Fig.4.16 Jaw crasher

Description Brand Name: Shanghai Vostosun

Model: PE500×750

Max. FeedingSize (mm) : 425

Capacity (t/h); 50 – 100

Overall Dimensions (mm):: 2035×1921×2000

Weight (t): 10.3

Source: SHANGHAI VOSTOSUN INDUSTRIAL CO., LTD

Price Php 395000.00

Quantity 1

Total Php 395000.00

Page 21: Chapter 4

Fig.4.17 vibrating feeder

Fig.4.18 Pulverizer

Description Brand Name: HIND

Model: No.02

Grinding chamber size:11.5”

Dimension (in) 72x64x52

Approx capacity : 100 kg. per hour

Price Php 350000.00

Quantity 1

Total Php 350000.00

Description Brand name: Shanghai Vostosun

Model: GZD-490×110

Max. Feeding Size per batch (mm) :580

Dimension, Lx W x H (mm)5200×900×950

Weight (t): 4.00

Source: SHANGHAI VOSTOSUN INDUSTRIAL CO., LTD

Unit price Php 589075.00

Quantity 1

Total Php 589075.00

Page 22: Chapter 4

Fig.4.19 Big bag coal filling machine

Fig. 4.20 Medium sized coal filling machine

Description Brand name: Ruili

Model:DCS-TON

Packing speed: 150-180bags per hour or 200~240bags

per hour (depends upon the weights)

Weighing scale: 100 kg. to 3000 kg, can be adjusted

freely

Source: Wuxi Ruili Technology Development Co., Ltd.,

Mainland China

Price Php 880000.00

Quantity 1

Total Php 880000.00

Description Brand name: RuiLi

Model:

Packing

speed

: 150-180bags per hour or 200~240bags per hour

(depends upon the weights)

Weighing

scale : 1 kg to 100 kg per bag, can be adjusted freely

Source: Wuxi Ruili Technology Development Co., Ltd., Mainland China

Price Php 250000.00

Quantity 1

Total Php 250000.00

Page 23: Chapter 4

Fig.4.21 Generator

Description: Brand Name: Gcneral 50 KVA Generator

Open type

3 Phase

1800 rpm

60 cycle

220 volts

Source: Working Metal Trading

Price: Php 10,2480.00

Quantity 1

Total Amount: Php 102,480.00

Fig.4.22 Platform push cart

Description Brand name: warehouse1

Model: platform push cart

Made form aluminum

Price Php 3500.00

Quantity 5

Total price Php. 17500.00

Page 24: Chapter 4

Fig. 4.23Delivery truck

Description Brand name: Isuzu

Model: 6W aluminum van 14ft MT

Engine: Diesel Engine

Cab: Standard

Transmission: Manual

Wheels: All steel

Cab: Standard Cab

Price Php 400000.00

Quantity 2

Total Php 800000.00

VI. PACKAGING PROCESS

Packaging is one of the most important things in the manufacturing process. It

gives impact and impression to the consumers just by seeing how the packaging looks

like. Usually it is one of the factors that give the entity a review during the first year of

operation. Packaging should not be taken as for granted. The proponents consider this

and have come up with different packaging style to attract consumers to like the product.

It would vary from sizes and shape suitable for each independent consumer. Illustrated

below is the process of packaging the finished product of Carbon Plus Manufacturing

Corp.

Page 25: Chapter 4

VII. PRODUCTION METHOD

There are several methods of processing, the job order production, batch

production, boutique production and the flow production.

.Carbon Plus Corporation will employ batch production as method to produce

activated carbon; each batch goes through one stage of the production process before

moving onto next stage. One batch will first undergo the carbonization then the oxidation

or steam activation, then the grinding and pulverizing stage, quality control and then

packaging.

The scheduled days of production would be from Mondays to Saturdays. The

machines would be interconnected so as to facilitate the production process with lesser

manual labor. The plant workers will operate the machines from extraction to packaging

process. After packaging and labelling, quality checking through inspection will be done

by plant supervisor. The plant workers are also in-charge of boxing the finished products

and also of transport to warehouse with the use of a push-cart.

Carbon Plus manufacturing Corp. will have 8-hour daily production operations

from Mondays to Saturdays. The manufacturing process will operate six (6) days in a

week. The official working hours for both factory employees and general/administrative

employees will be from 8:00 am-5:00 pm. Consequently, any excess hours worked by the

employees will be accounted for as overtime.

The estimated days of operation for the year will be 300 days computed on Table

4.4. However, the company may also operate its business during holidays if

circumstances allows. Thus, non-working holidays are being considered in order to

Page 26: Chapter 4

determine the days worked by the employees during holiday so that they will be

compensated properly. Changes of operation days during the year may occur due to

increase or decrease of supply. Other factors include the increase and decrease of

demand, minor or major repairs of the machineries, and the performance of the factory

workers that will possibly affect the normal business operation.

VIII. QUALITY CONTROL

Before transporting the products to the warehouse, the company first assess the

quality of the products. The plant manager attends to this process, and then sealed, and

afterwards the products will be delivered to the warehouse for storage purposes.

IX. WASTE AND WASTE DISPOSAL

During the normal operation of the business, relatively few parts of the raw

materials are not directly needed in producing the end products. These are treated as

wastes or scraps. Though coconut wastes are not highly demanding for intensive care, it

is very necessary to have good and effective waste management techniques as the waste

generated cannot be reduced easily. Environmental options always have to be considered

by waste management facilities. The treatment for the scraps depends upon its quantity. If

the amount is material enough, it would be considered as an income of the corporation,

however, if the amount is immaterial, it will be considered as a part of the factory

overhead.

Page 27: Chapter 4

The company will have waste disposal management that will account and monitor

all wastes. The waste disposal management includes proper segregation of trashes, the

three R’s, and regular disposal of garbage. Basically, trash cans in the whole plant area

will be made accessible to all. Likewise, the company will implement the reduce, reuse

and recycle program.

X. SUPPLIES AND NETWORKS

A. Raw Material Requirements

1. Coconut Shells (Direct Raw Material)

Fig. 4.25 Coconut shells

Activated Carbon may be made from different kinds of carbon-rich

raw materials such as wood, peat, coconut shells, nut shells, bones and fruit

stones. Carbon Plus Corporation offers activated carbon made from coconut

shells. Coconut shell is the best raw material in producing high quality

activated carbon for it has inherent qualities that make it the best material to

be used. The inherent qualities of coconut shells are shown in the table below.

Inherent Quality Description

High hardness levels

(> 97%):

Ensures superior material handling and

minimizes dust generation.

High surface area

(up to 1500 m2/g):

Gives high adsorption efficiency

Page 28: Chapter 4

High microporosity

(< 20 Angstroms):

Gives high adsorption and retention

capacity. This is important for the

removal of low-molecular weight organics

and trace levels of contaminants.

Low ash content:

Gives high purity preventing

contamination of adsorbates.

High density

Provides for economical containment for

the same level of filtration.

Table 4.4 Inherent Qualities of Coconut Shells

With these inherent qualities, the use of coconut shell as the main raw

material would provide Carbon Plus Company the edge among other

producers of activated carbon with the use of other raw materials.

The company would be supplied mainly with this raw material by the

family business of one of our incorporator, Dailene S. De La Cruz. Since the

plant is located at the heart of coconut producing region, if ever the main

supplier would not meet the needs of the company there are many other

suppliers that would be available to supply the company’s needs. Also, the

company would be coordinating with the Philippine Coconut Association

(PCA) for other potential sources of coconut shells.

Page 29: Chapter 4

2. Sack bags (Indirect Raw Material)

Fig. 4.26 Sack bag for Packaging

After the product has been processed, it would now then be packed in sack bags

according to the desired weight. Sack bags would be used instead of plastic bags to

minimize the consumption of plastic and thus, promote a greener environment.

B. Raw Material Cost

The cost of the raw materials is as follows:

Raw Material Description Quantity/Dimension Price

Coconut Shells Direct Raw Material 1 kilo P 250.00

Sack bag Indirect Raw Material 270mm W x 345mm L P 3.00

Table 4.5 Cost of Raw Materials

C. Material Handling Design

1. Work Practices

Upon the arrival of the raw materials, it would be put into storage.

The employees would ensure that the FIFO (First In, First Out) Method

Page 30: Chapter 4

would be used. Thus the newly arrived raw materials would be put at the

last part of the storage room and the materials to be put to process would be

at the part nearest to the door.

When materials would be put into the production room, workers

must take cautious actions during the transfer period.

2. Work Area

The area in which the materials would be stored, processed and

packaged are connected with one another for easy transfer of materials.

This would increase the efficiency of the production and also, it would

prevent any fortuitous event during the transfer of the materials from one

work area to another.

3. Storage

The materials and supplies would be stored properly in a room which

has the proper ventilation for the materials. The materials and supplies

would be segregated as to their kind. Daily check of the storage is a must to

preserve the quality of the materials.

4. Clothing

The employees would be wearing the company’s signature polo shirt

with the logo and name of the company, Carbon Plus Corporation. They

Page 31: Chapter 4

would be properly provided with masks and gloves for the workers

protection from hazardous incident.

5. General Precautions

Employees must be very careful in the production room. They must

keep proper distance from the machineries and equipment to keep them

from hazardous incidents. Factory workers must always wear their masks

and gloves during the etire work period for precautionary measures.

6. Maintenance

The storeroom handling the materials would be properly cleaned and

maintained every day. It would be checked by the maintenance personnel to

ensure the preservation of the materials’ quality. Also, the production and

packaging rooms would be properly maintained every day by maintenance

personnel.

7. Training

Before the employees undergo in the actual practice, they would be

trained by skilled individuals for them to gain the actual know-how of the

operation. The performance of the employees would affect the quality of

product produced. Thus, they would have to obtain an understanding of the

process of the production for them to perform well in the actual practice.

Page 32: Chapter 4

XI. TECHNOLOGICAL ASSISTANCE

Department of Science and Technology

The company would be coordinating with the Department of Science and

Technology (DOST) for sources of information about innovations in technologies that

would be of great help for a more efficient and effective machines and equipment in the

processing of Activated Carbon. Furthermore, other information such as processes and

chemical data regarding the operations and production of the entity would be gathered in

the said department.

XII. UTILITIES

A. Electricity

Without power the whole production process would not function and the

operation processes would also be affected. Thus, the need for electricity is vital

for the entire company to run continuously. Carbon Plus Corporation would

acquire its electricity at the Manila Electric Company (also known as

MERALCO). Also, the company would provide a power generator in cases of

possible blackouts or brownouts for the company to run smoothly.

B. Water

Water is a universal need for every human being and is also a need for

companies. It plays a very important role in our daily routines. It is used for

hygiene, hydration and is also a part of the process of producing the company’s

product. Thus, the need for establishing a good water connection arises. The

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company would secure its water connection at the Quezon Metropolitan Water

District.

C. Telecommunications

Technologies have evolved rapidly and as a result, the way people

communicate has been largely affected. Communications nowadays are faster

with the use of phones and fax machines. The company would acquire a

connection at Philippine Long Distance Telephone Company (PLDT) which the

country’s top provider of telecommunication. Also, the company would secure a

Sun Cellular plan. This would enable employees to communicate and transact

with each other and to other external individuals like customers and suppliers.

D. Internet Service Provider

In our world today, the World Wide Web is the top source of information.

The company would secure a PLDT myDSL connection also at PLDT for a high

speed internet connection. Not only it would enable the employees to acquire

information it would also help the company for a faster sharing of data and

information within the entity. Furthermore, it would accommodate online

transactions and other related services online.

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CHAPTER 6

SOCIO-ECONOMIC FEASIBILITY

I. Contribution to the Philippine Economy

The establishment of the company would help the Philippine economy grew. It

increases the government’s tax collection for the intention of using the money

acquired for the development of the country. Furthermore, it would help in the export

aspect of the country once it started exporting its product in the near future.

II. Contribution to the People of Quezon Province

Building a new company within Quezon Province would increase the number

of available jobs within the region. Qualified unemployed individuals within Quezon

would be given the chance to acquire a job with a fair salary without having the need

to go out of the region. Thus, this would help them cope up with their family’s needs

and also have time to spend with their family more than when working outside the

region.

The company would also help the suppliers of coconut shells within Quezon

Province gain an additional customer. With as much as they would be of help to

Carbon Plus Corporation, the company would be of help with theirs too. Furthermore,

customers within Quezon Province would not need to go beyond the region just to

acquire activated carbon. They could acquire the product as fast as possible with less

cost.

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III. Contribution to the Environment

Carbon Plus Corporation aims to help in the purification of the environment.

The product itself promotes the said aim due to its trait as an adsorbent and is really

the one used to purify substances. Furthermore, the corporation ensures the

environmental awareness of its employees and staffs. It would promote a clean and

green environment within and outside its plant facilities.

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CHAPTER 7

LIST OF EXPECTATION

Carbon Plus Corporation is a corporation designed to be globally competitive in its

products and services. The corporation is expected to be one of the trademarks of Quezon in

the coming years bringing out the usefulness and importance of coconut, the major product

of Quezon. The corporation expects to help the province in the coming years with regards to

employment, cleanliness, and progress.

Carbon Plus further expects to expand its operations as soon as possible to

CALABARZON, to the whole Luzon, to the whole Philippines, and hopefully be able to

export its products to other countries in the globe. To be globally competitive, Carbon Plus

expects to regularly innovate their products and processes, as well as its services for the

convenience of the common good.

Sooner, Carbon Plus will rise by means of slowly but surely taking steps to progress.

Hopefully, in the future years to come, Carbon Plus will be able to build a name that is

trusted and respected.