Sample
Feasibilty study
TECHNICAL ASPECT
This study discusses about the processes of production and activities of
the company. It states also the machineries and equipment used in production
and other aspects regarding bringing the raw materials into a finished product
ready for trade. Plant layout, size and production schedule are all presented for
the purpose of identifying the business operation. Also, product specifications,
the product processes using flowchart, the list of machinery, tools, and
equipment are enumerated with their corresponding costs, the raw materials and
fund sources are also cited.
A. Location
The proposed business and processing site will be operated at Talomo
River Calinan Davao City. We have seen that the place will be suitable for
building a plant because it is away from residential areas. It is also accessible
since it is along the road.
Figure 1.Talomo River Calinan, Davao City
B. Gantt Chart
The chart below states the activities for making a business establishment
before the normal operation will take place.
Table 1 Gantt Chart
Activities Apr May Jun July Aug Sep
1.Organizational Planning
2. Acquisition of Funds
3. Find Business Location
4. Sign the Contract of Rent
5. Apply Business Permit
6. Purchase Furniture,
Equipment, and Products
8. Finding Supplier of Raw
materials
9. Hiring of Employees
10. Grand Opening
C. Plant Layout, Size and Production Schedule
Figure 2. Plant Layout
Figure 2. Sample Product
Lime and Vit. C Storage Room
Honey Storage
Room
Sugar Storage
Room
Finished Products
Packing Area
Processing Room
Cooling Area
Packing Materials
Office
Was
h Ro
om
D. Product Specification
Natural Hair Remover is a brown sticky gel packed in a 400 ml canister. The
package includes ten (10) pieces wax strips.
E.Product Preparations and Processes
The process of production should be practiced very well and perfected to
have a product with a high standard and quality that will be best suited for its
consumers. All employees/workers must be trained proficiently and must be very
knowledgeable on how the process of production goes as well as the proper use
of facilities and equipment. The business should also see to it that there are
enough raw materials so as not to delay the production process.
1. Preparation of Raw Materials
Measure four (4) parts of white sugar, one (1) part of water, one (1)
part of lime juice, one (1) part of honey and one-eighth (1/8) part of vitamin
C. Extract fresh juices from limes using the juicer.
2. Mixing and Heating
Mix all the ingredients well. Heat the mixture and let it boil until it turns
brown and sticky. Observe safety precautions.
.
F. List of Raw Materials, Machineries, Tools, and Equipment with
Corresponding Costs
Raw Materials (Product 1)
Quantity Price Amount
White Sugar
33 kg.
(1/3
kg./unit ) P40 1,320.00
Lime40kg. 20 800
Honey 2 gal 500 1000
Total P 3,120.00
PRODUCTION TOOLS
Materials Quantity
Price per Piece
Amount
Juicer
3 975 2,975
Electric Stove 3 1,375 4,125
Scissors
3 17 51.00
Cutter3 20 60.00
Hand Gloves
3 70.75 212.25
Cooking Pot
3 500 1,500
Wooden ladle 3 50 150
TOTAL AMOUNT 9073.25
OFFICE EQUIPMENT
Materials Qty Price per Piece
Amount
Computer
2 20,990 41,980.00
Aircon
1 13,990 13,990.00
Total Amount P 55,970.00
FURNITURES AND FIXTURES
Office Chair
3 700 2,100.00
Filing Cabinet5 1,225 6,125.00
Office Table
3 450 1,350.00
Sofa
2 1,000 2,000.00
Printer
1 3450 3,450.00
TOTAL P 15,025.00
OFFICE SUPPLIES
Materials Quantity Price per Piece
Amount
Ballpen5 4.50 22.50
Pencil 10 5 50.00
Folders10 5 50.00
Paper Clip
1 box 23 23.00
Stapler2 25 50.00
Staple Wire
10 boxes
5 50.00
Ruler
3 5 15.00
Bond Papers
4 ream 160 640.00
Fastener
2 box 20 40.00
Envelope
20 7 140.00
Scissor
2 17 34.00
4 13.25 53.00
Scoth Tape
Tape Dispenser2 51 102.00
Sharpener
2 5 10.00
Puncher
1 62 62.00
Eraser5 5.50 27.50
Correction Fluid
2 23 46.00
Record Book
5 75 375.00
Emergency Lights
1 1,050 1,050.00
Fire Extingusher
1 1,000 1,000.00
Warning Labels2 20 40.00
Trash Cans
6 55 330.00
Soft Broom
2 30 60.00
Dust Pan
2 45 90.00
Mop
1 120 120.00
Trash Bags
2 46.75 93.50
Rugs
6 30 180.00
Telephone
1 1250 1250.00
Total P 6003.50
G. Sources of Raw Materials
The raw materials are mainly white sugar, honey and lime. White sugar
can be purchased at Calinan Public Market. Honey and lime will be purchased
from contracted individual vendors in Tamayong, Davao City.
H. Waste Disposal Management
The waste from the processing place will be identified as biodegradable.
These wastes will be disposed in a landfill located at the back of the plant site.
Non-biodegradable wastes will be recycled or sold to junkshops.