Feasibility Studies A Guide to Centralized Foodservice Systems 55 WRITING A FEASIBILITY STUDY The decision to implement any new project

or program must be based on a thorough analysis of the current operation. In addition, the impact of implementation of the proposed project/program on the future operation of a school foodservice system must be evaluated. If a school foodservice director were considering central food production, such an analysis would be critical in making a final decision on whether to progress and how that progression should occur. A feasibility study provides the process for this analysis. This chapter will focus on several aspects of a feasibility study: Definition/purpose of a feasibility study Who conducts the feasibility study Components of a feasibility study for a centralized foodservice system Definition/Purpose of a Feasibility Study A feasibility study is defined as an evaluation or analysis of the potential impact of a proposed project or program. A feasibility study is conducted to assist decision-makers in determining whether or not to implement a particular project or program. The feasibility study is based on extensive research on both the current practices and the proposed project/program and its impact on the school foodservice operation. The feasibility study will contain extensive data related to financial and operational impact and will include advantages and disadvantages of both the current situation and the proposed plan. The feasibility study is conducted to assist the decision-makers in making the decision that will be in the best interest of the school foodservice operation. The extensive research, conducted in a non-biased manner, will provide data upon which to base a decision. Chapter 4Feasibility Studies 56 A Guide to Centralized Foodservice Systems Who Conducts the Feasibility Study? A feasibility study may be conducted by the school foodservice director in the district considering a central kitchen. The school foodservice director often does not have the time required to conduct the in-depth analysis required to complete a feasibility study. Also, the director may lack the expertise necessary for completing the study. Thus, a consultant often is hired to conduct the feasibility study.

The individual conducting a feasibility study should have the following characteristics: Experience in conducting feasibility studies Experience in foodservice and experience in school foodservice highly desirable Fair and neutral with no prior opinion about what decision should be made. It is important that all necessary data are collected and presented so that the best decision can be made. If a consultant is hired, the school foodservice director will need to be involved in hiring the consultant and in the entire study development process. The school foodservice director will provide most of the operational data needed to assess the current operational situation, including information about costs, staffing, participation, etc. Guidelines for hiring a consultant will be provided in Chapter 6. Components of a Feasibility Study for a Centralized Foodservice System The feasibility study for a proposed central foodservice system will be extensive. There are several components that should be included in the study, and each will be discussed. Executive Summary An executive summary should be included at the beginning of the report. In 2-3 pages, the main points of the feasibility study are summarized for a quick review by busy administrators and school board members. The executive summary provides the reader with an overview of the feasibility study and will help them see the entire picture before they read the details. Some decision-makers may only read the executive summary. Thus, the executive summary should be concise and include the major findings of the study followed by a recommendation. Feasibility Studies A Guide to Centralized Foodservice Systems 57 Background Information Some background or setting information is critical to provide the context of the feasibility study. Included in the background information: Summary of the school district including such information as the number of schools, number of students, number of students participating in the school foodservice program, geographic size, etc. Summary of the school foodservice including the types of programs offered (School Breakfast Program, National School Lunch Program, snack programs, summer feeding programs) and any special features of the program (such as catering) Mission of the school district and the school foodservice program Goals of the school district and the school foodservice program

 Trends in the school environment. Trends that will be most important relate to recent and projected growth trends in the school district, labor availability, financial status of the school district, etc. For example, central kitchens can be very beneficial to school districts that are in a rapid growth phase. There are economies of scale to be realized and building and equipment costs can be reduced if fully-equipped kitchens are not built in every school. The existing type of service should be given consideration. Acceptance of a change in style of preparation and service is an important consideration. Reason for the proposal. An explanation of the factors that influenced the school foodservice director to consider a change in foodservice systems is needed to provide the context and justification for consideration of a new system. In other words, what problems could be solved by making a change in the foodservice system? Proposed Centralized Foodservice System Perhaps the largest portion of the feasibility study will be used to describe the proposed centralized foodservice system. There are many components that should be included, and school foodservice staff need to be involved in many of the discussions about the new system. The following information needs to be included: Description of the System. There is a need for many discussions about what characteristics will be needed from the proposed centralized foodservice system. Basic to these discussions is decisions about the menu. For any foodservice system, the menu drives almost every decision related to the system: purchasing, storage space required (including the proportion of storage space required for dry, refrigerated, and frozen items), equipment, safety and sanitation, and service. An extensive discussion about the menu, its impact on the foodservice system, and considerations required when planning a central kitchen is included in Chapter 3. A listing of proposed menu items should be included. Feasibility Studies 58 A Guide to Centralized Foodservice Systems A description of the processes of the central kitchen is included in the feasibility study. That includes decisions about whether to use bulk or pre-plate and whether to transport food hot or chilled. These decisions will impact subsequent decisions related to equipment, staffing, food safety controls, and transportation. Advantages and Disadvantages of the Proposed System. The advantages and disadvantages of the proposed centralized foodservice system need to be clearly explained in the feasibility study. Not only should the potential gains be discussed, but decision-makers need to know possible disadvantages of the

system. It is better to have the potential disadvantages described so that there will be no big surprises when the new system is in operation. Also, it will help the decision-makers determine if there are characteristics/outcomes of the new system that they will not be able to accept; thus, helping them make decisions to modify the system before it is too late. Knowing the potential disadvantages also help the decision-makers to be realistic and determine ahead of time what they are willing to accept. Staffing. A description of the staffing requirements includes the number, hours, and positions of employees needed at the central kitchen and at the various satellite locations. The need for highly skilled employees, for example, chefs, bakers, or food scientists, should be mentioned. An estimate of the total labor hours and cost should be included and will provide comparison numbers for the existing system. It also might be useful to extend the numbers to show the impact of adding schools based on future trend predictions for the school district. To a point, schools may be added with no staffing increases at the central kitchen. Those break points need to be mentioned in the feasibility study. Space Requirements. The space requirements for both the central kitchen and the satellites are included in the feasibility study. That will provide the basis for space cost comparisons, particularly for determining costs for constructing a new central kitchen and for building new schools. Basic Layout of Central Kitchen and Satellite Kitchens. A basic layout of the central kitchen and a satellite kitchen will be helpful in communicating requirements for space. This layout does not have the detail of a final blueprint, but would include basic layout of equipment and space requirements. Developing a Food Product Flow Diagram also is useful in thinking through the central kitchen and communicating the facility to others. Feasibility Studies A Guide to Centralized Foodservice Systems 59 Equipment Needs and Costs. A list of equipment required for the central kitchen and the satellite kitchens is included. Cost estimates for the equipment and renovations at the school sites are needed to provide realistic cost estimates for the project. Computer Software Requirements. The various functions required for computerization are listed. In a centralized foodservice system, computers are used for a variety of functions such as inventory control, school/satellite ordering, production planning, and data management. Site Possibilities. The feasibility study should provide one or two recommended

sites. The cost of the site is included. Also, the rationale for the site selected should be discussed, particularly transportation logistics. It is preferable for the site to be centrally located among the schools in the district. It also needs to be accessible to tractor/trailers making deliveries. The dock location is an important consideration. There will need to be adequate space for tractor/trailers to maneuver to and from the dock. Comparison of Current and Proposed Systems A comparison of the current and the proposed centralized foodservice system needs to be included. Comparisons are needed for staffing numbers/hours, staffing costs, food costs, equipment costs, building costs, and total costs. A discussion of building and equipment costs needed in the next ten years for the current system needs to be included. For example, if there were several new schools being built, what would be the cost of building and equipping the kitchens for those schools? Are renovations needed for existing kitchens? Is there a need to replace or add equipment at any of the schools? Pro forma income statements are needed for the current system and for the proposed centralized foodservice system. This includes realistic projections for both revenue and expenses. Financial projections would be extended for multiple years, often 10 years, so that the long-term financial impact can be estimated for both alternatives. Project Schedule A best guess schedule for the project would be included as part of the feasibility study. Realistic dates for each phase of the project would be included; however, there often are delays during implementation of a project, particularly one with a major construction component. An example of some of the tasks included in the project schedule or timeline are: Review of the feasibility study by the district school foodservice director to ensure familiarity with the study, all aspects of the study accurately represent the current foodservice operation, and the final recommendation is appropriate for the district. Feasibility Studies 60 A Guide to Centralized Foodservice Systems Briefing of school district administrators, including the district school foodservice director (or the school foodservice director may opt to review the feasibility study prior to the briefing of the school district administrators) Briefing of school board members Approval of school board to proceed with architectural/engineering services Submission to the State Department of Education for project approval Develop a project team

 Identify a lead consultant for the project Prepare schematic design Prepare design drawings Obtain construction cost estimates Review design with city/county planning and zoning officials Consult with city/county health department about design/plans Start construction documents Complete construction documents Submit construction documents to State Department of Education, requesting permission to advertise for bids Advertise for bids Open bids Submit resolution to school board for final authorization for construction Begin construction Begin operational planning Start-up for new food production facility On-going evaluation process The project team will be meeting on an on-going basis throughout the project to discuss various aspects of the project. In addition, the district school foodservice director will have an operations team assembled to work on implementation aspects, such as developing systems for computerization, purchasing, food production, food safety, employee training, and distribution. Many of the operational forms and standardized recipes will need to be reviewed and modified for the new system. Final Recommendation A final recommendation is provided in the feasibility study based on the research conducted. This recommendation includes the rationale for the recommendation and financial evidence that supports the recommendation. Feasibility Studies A Guide to Centralized Foodservice Systems 61 Exhibit 4.1 Proposed Outline for a Feasibility Study 1. Executive Summary 2. Background Information 3. Proposed Centralized Foodservice System a. Description of the System b. Advantages and Disadvantages of the Proposed System c. Staffing

d. Space Requirements e. Basic Layout of the Central Kitchen and Satellite Kitchens f. Equipment Needs and Costs g. Computer Software Requirements h. Site Possibilities 4. Comparison of Current and Proposed Systems 5. Project Schedule 6. Final Recommendation Feasibility Studies 62 A Guide to Centralized Foodservice Systems Exhibit 4.2 Example Pro forma Income Statement Form Year 1 Year 2 Year 3 to Year 10 Revenue 415000 Interest 416100 Student Meal Sales 416200 Adult Meal Sales 416900 Other Food Sales 416980 Contract Meal Sales 419900 Other Local Source Revenue 432600 State Source Revenue 443000 Direct Federal Sources 445500 Federal Reimbursement 445900 Market Value Commodities Revenue 450000 Other Sources Revenue 460000 Fund Transfer-In Revenue Total Revenue

Expenses 710450 Purchased Food Expense 710100 Wages & Salaries Expense 710410 General Operating Supply Expense 710310 Purchased Technical Services 710320 Property Operation, Maintenance, & Energy 710390 Other Services Expenses 710550 Capital Equipment 920820 Indirect Costs

920810 Fund Transfer-Out Expense 710200 Employee Benefits Expense 710490 Market Value Commodities Expenses 710710 Property & Liability Insurance Expense Administrative Overhead Expense Total Expenses Excess/Loss

PROJECT DESCRIPTION a. Basic Concept The Project adopts the concept of a Village-Scale Waste Vegetable Oil (WVO) Bio-Fuel Plantwith a WVO processing capacity of 60 liters per hour (LPH) or 1,440 liters per day (LPD)assuming 24 hours continuous operation. Blended with 10% regural petro-diesel fuel, theend-product is a clean and green bio-fuel that can be used directly as diesel engine fuel instationary diesel engines and in most indirect injection (IDI) diesel-fed automotive vehicleswithout any further blending with petro-diesel fuel or any alteration of the fuel systems. Thebasic process is shown in the diagram below:

Purpose and Objectives The project shall produce on a small scale, and profitably sell to consumers in the immediatecommunity where it is based, a vegetable oil-based alternative fuel to substitute up to 90% ofpetro-diesel consumption of diesel engines, at adequate volumes and at the same price aspetro-diesel fuel. The ultimate purpose is to serve the country and the people by contributing to: the reduction of the operating cost of transport and other industries that will redound to decreased costs of goods and services and improved purchasing power of the peso; a significant increase in the use of indigenous and renewable energy resources, thereby reducing importation of petro-diesel fuel and improving the balance of payment situation; and the shift to clean and green fuels leading to the improvement of over-all environmental quality c. Plant Site The plant is ideally located in or close to an urban area but not necessarily in the city or towncenter. Being a small-scale plant with no large motors or engines used and no hazardouschemicals and very minimal process wastes, the plant can be located even in noncommercial/industrial zones, e.g., a low-density residential area. The final products can bedelivered to the target outlets: e.g., garage/service stations of organized transport groups,diesel-fired plants, fishing ports. The minimum requirements are: road accessibility, sufficient power and water supply, andadequate land area of at least 500 sqm and a building area of 100 sqm. If available ataffordable rates, a land parcel with an existing building will be the most ideal for a quick startup. Preferably, a property of at least 2,500 sqm will allow for future expansion. d.Production and Marketing Program As designed, the Project shall be able to produce about 1,300 liters of 10% diesel-blendedbiofuel per day. This fuel is ready to use as is in any diesel engine without any alteration inthe engines fuel supply and combustion system. This entails the recovery of 1,440 liters ofWVO per

day at the competitive buying price of Php 10/liter. Opening the door of opportunityto the suppliers (e.g., hotels, restaurants, canteens) to join as shareholders, the Project iswell positioned to corner the local supply. Since the raw material and the process are both inexpensive, the Project shall be able tooffer the product at the same price of petro-diesel. The marketing task is not expected to bedifficult. The priority target market is the public transport service sector. Small fleet operatorsor cooperatives/associations with their own service station shall be the best client with whoma long-term supply-purchase agreement shall be given priority. The scope of the marketing effort is also very manageable. At the least bio-fuel ratio of only10%, the target number of vehicles (at the low daily fuel usage of 20 liters per vehicle) isabout 650 only. At the maximum bio-fuel ratio of 70%, which is not unlikely given thecompetitive pricing and over-all beneficial impact, the target number of vehicles is less than ahundred. This market volume threshold is very possible to attain even in medium-sized townswith basically an agricultural economy where small diesel engines are the mainstay ofagricultural machineries and post-harvest facilities. e.Organization and Management Plan The Project shall be established and managed as a joint-venture enterprise of the coinvestors.To be regis-tered as a stock corporation, the business shall be managed under the corporationcode with management involvement and income sharing in proportion to the equity shares ofthe shareholders. These shall include both consumers, i.e., public transport service firms,especially cooperatives or associations of drivers and operators, and suppliers of the rawmaterial, i.e., food service establishments. Any person or entity willing to put up the land and/orbuildings where the Project can be located is also welcome.

II.FINANCIAL PLAN AND PROJECT EVALUATION a.Project Cost and Funding Sources The total Project cost is estimated at Php 2.0 million more or less. Fixed assets will cost Php893,000 inclusive of site development (perimeter fence, roads/drainage, water and powersystems, and building construction), trans-port and office equipment. If local investor-partners already have these assets and are willing to put in the same as theirshare contribution, then the cash outlays for the machinery and equipment will be a minimalPhp 150,000, mainly for the imported components. This will be sufficient as initial paidupcapital for purposes of registering the business with the SEC. The biggest cash outlay is the estimated requirement for initial working capital amounting toPhp 937,000, part or all of which can be mobilized after incorporation and registration in theform of loans and/or grants. This includes a 1-month inventory each for raw materials costingPhp 486 thousand and Php 304,000 more or less for finished products to ensure nodisruptions in the production and selling operations. This cash outlay will be substantiallyreduced if the local suppliers of WVO are willing to join and contribute the basic raw materialas part or all of their share capital. b. Project Evaluation

The business as planned is projected to earn an annual net income of Php 1.96 million, thus yielding a very high return on investment (ROI) rate of almost 200% p.a. or four times the assumed hurdle rate of 24% p.a. Investors can thus expect to recoup their investment in only half a year and opt to plough back all or part of the profit for replication of the model plant in other areas. The proposed business is basically sound because it produces and sells a commodity thateveryone needs and uses, directly or indirectly, as owners or operators of vehicles andfactories using diesel fuel or as commuters and consumers of goods and services affected bytransport and manufacturing costs. Its greatest advantage is that the raw material isrenewable and indigenous. As the finite world petroleum reserves approach depletion levels,petro-fuels will become increasingly scarce and unaffordable. In fact, the crisis is now staring at us all in the face, rich and poor nations alike. Bio-fuel is nolonger the future; it is here and now. For poor nations like the Filipino, investing in this andsimilar projects is a contribution towards assuring our national survival and return to the pathof total and genuine development. ANNEX: PRELIMINARY COST & BENEFITS SUMMARY I. BASIC PRODUCTION ASSUMPTIONS: 1Operating Days Per Year 300 2 Capacity/Hr. of Waste VegOil (WVO) Bio-Pass Processing System (Liters) 60 3 Hours of Operation/Day: 3 shifts @ 8 hrs./shift 24 4Total Volume of (WVO) Processed per day (Liters) 1,440 5Vol. of diesel fuel mix per day @ 10% of WVO volume processed 144 6 Average Bio-Fuel Yield: % of WVO volume processed 80.0% 7 Volume of Bio-Fuel Produced Per Day (Liters) + diesel fuel mix 1,296 8 Cost of diesel fuel per liter (aver. 5 years from

Project Yr. 1) 35.00 9 Manual Labor: Man-Hrs/Day @ 3/shift @ 3 shifts/day 72 10Skilled Labor: Man-Hrs/Day @ 1/shift @ 3 shifts/day 24 11 Prod. Supervisors: Man-Hrs/Day @ 1/shift @ 3 shifts/day 24 II. MARKETING TARGETS 1Daily Production Volume of WVO Bio-Fuel (Liters) 1,296 2 Average Petro Diesel Consumption Per Vehicle: Liters/Day 20 3Target Market: No. of Vehicles Buying WVO Bio-Fuel Per Day a. Bio-Fuel ratio to Petro-Diesel = 10% 648 b. Bio-Fuel ratio to Petro-Diesel = 20% 324 c. Bio-Fuel ratio to Petro-Diesel = 50% 130 d. Bio-Fuel ratio to Petro-Diesel = 70% 93 III. PROJECTED STATEMENT Gross Sales Income:

INCOME

Sale of WVO Bio-Fuel @ same price as diesel fuel 13,608,000 Less: Rebate/Savings & Capital Build-Up Fund @ 8% Total Net 12,587,400 Less: Cost of Sales 7,409,280 Gross Profit 5,178,120 Less: Administrative & Selling Expenses 1,220,480 Net Income Before Interest & Taxes (NIBIT) 3,957,640 IV.ESTIMATE OF TOTAL PROJECT COST A. PRE-OPERATING EXPENSES 160,000 B. FIXED ASSETS 893,000 C.INITIAL WORKING CAPITAL TOTAL COST 1,990,178 V.MAJOR INDICATORS OF VIABILITY/PROFITABILITY 1 Return on Investment Rate (on total project cost): % per annum 198.9% 2 Payback Period (on total project cost): Years 0.50 Biofuel production plant pre feasibility study 937,178 PROJECT Sales 1,020,600 Income,

A Project Feasibility Study on the Manufacture of an Ergonomically Designed School Backpack March 1, 2011, 8:33 am Proposed Location: Paniqui Productivity Center, McArthur Highway, Samput, Paniqui, Tarlac Proponents: Russel D. Garcia, Kathleen E. Gonzales, Lara Joy T. Martinez, Jonelyn F. Mendoza, Emmaloida H. Tabag Degree: Bachelor of Science in Industrial Engineering School: College of Engineering, Tarlac State University Date: March 2003 Brief Description of the Project The project proposes to manufacture an ergonomically designed school backpack, branded as Pack Em All It is a backpack aimed at helping elementary students to correct posture and reduce stress on back and shoulder while carrying loaded backpack. The bag hasproperties unique from other bag presently available. The aluminum places at the back portion of the bag but it is not visibly seen and will serve as the back support. The aluminum is contoured to fit the shape of the back. This will trigger the back straightening of the user. This

will prevent the user from slouching and eventually develop a good posture. It has a wider sling to have a greater support. It has a waist support to sustain the lower part of the torso. It has more space inside to cater to students who bring lots of school materials. The bag is ergonomically designed for the ease and comfort to prevent backaches, shoulder pain and abnormal curve of the spine, thus creating a good relationship between the bag and the user. Summary of the Findings A. Management Aspect The product shall be pre-operated eight (8) months before the start of the operation. Partnership shall be the type of business organization, and shall be composed of five (5) partners. The organizational set up shall be in a line function. The business shall have an initial capital of Php 625,000 and Php350,000. The business shall be loaned from DBP. The General Manager shall be the head of the organization. Under him is the Plant Manager who shall be responsible on the production area, and has the overall control on the company personnel, marketing of the product and even the allocation of budget for the company. Along with him is a Secretary. Under the Plant Supervisor is the Human Resource Personnel; under him are the Utility Man/Driver, Security Guard, and Janitor/Messenger. Next is the Quality Control, under him is the Sewer, Machine Operator, Packager and Stockman. Next is the Marketing and Sales Personnel, under him is the Purchaser Finally, the Finance Personnel, next to him is the Accountant, who shall be classified as retainer, because he shall render service only once every end of the month. The required personnel shall come from nearby places of the plant and within Tarlac. As soon as the business normally operates, all benefits are to be given to all employees. The company shall hire additional workers after six (6) years of operation, based on the forecasted increase of plant capacity. They are to be paid at a minimum starting salary and shall also increase to 10% annually. B. Marketing Aspect The proposed product is based on the idea that elementary students have a hard time in carrying their things from school and that in the latter of their lives, they may experience back disorders if not properly taught. The demand of the supply shall be based the total number of students from Grade IV-VI, and the supply shall be based on the existing competitors in malls. A market share of and 43.2% is available for the product. Pack Em All is the brand name of the

product and is priced using Full cost pricing at the market at an amount of Php 682.75 inclusive of Value Added Tax. C. Technical Aspect The bag is created for enhancing desirable human values such as increased comfort and improved quality of life. The product will provide lumbar binder fitted to the body waist, which will offer some trunk support through elevation on intra abdominal pressure and will serve to remind us of proper posture. It will also provide back support for the spine. This support is made up of 0.4 cm thick and 2.5 cm wide flat-bar aluminum material. Its height varies in three different sizes, 12, 14 and 16 inches. This is based on the length of spine from Thoracic level 3 (T3) to lumbar Region five (L5) of our target market. The manufacturing process is based on the usual process done by any bag manufacturing in the province, which is by the use of high-speed electrical sewing machine. The molding process of the aluminum back support is done by a hydraulic press. The whole production operation is estimated to have a standard time of 353.2455 minutes, including pattern making. But in case of mass production, this process will be eliminated and the total production time will be 104.8455 minutes or 1.75 hours. The plant size or plant capacity is measures based on the machine used. The plant will have the capacity of 10,080 units/day. The production schedule will be 10% of the average market share every year to provide safety stocks in case any increase in demand arises. The plant is located at Paniqui Productivity Center, Brgy, Samput, Paniqui, Tarlac. This building is divided into two parts. The first part has already been leased and the proponents will lease the southern part The building has a floor of 630 sq.m and has a monthly rental of Php 20.00 per square meter. It is a 4 1/2 drive from our suppliers and 30 minute away from our target market. It is along McArthur Highway, which makes it accessible to public transportation. Paniqui is known for its sewing business, so laborers with that particular skill will not be a problem. Nearby towns could also provide manpower for the plant. The water requirements will only be minimum and will be supplied by the Paniqui Water District. The power consumption will be generated from the Tarlac Electric Corporation (TARELCO). The plant will not provide toxic wastes. Only excess fabrics will the wastes, and these will be sold to some backyard manufacturing that produce tokens and small purse for different occasions. D. Financial Aspect

The current ratio or working capital ratio is one of the fundamental measurements of a companys liquidity. This measurement is computed by dividing the total current assets by the total current liabilities. For JR. JEK PARTNERS, the profit margin on sales means that for the year 2002, they generated 6.66% of net sales. The decrease in the second year results from the inability of the plant to shoulder the expenses incurred in the production. But in the succeeding years the company recovers with the increase in the profit margin. Another way of testing the profitability of the business is through the use of rate of return wherein it measures the rate of return to the partners equity of JR JEK PARTNERS are 28.9%, 17.26%, 37.32%, 67.96% and 99.95% for the first, second, third, fourth, and fifth, respectively ensure that the business is profitable. With all other factors remaining constant, an increase in the partners equity will decrease in return of equity. For as long as the return of equity is greater than zero (0), the firm precisely earns income or, on the hand, breaks even. Shortly stated, the firm operates in a favorable performance. Thus, the project is financially feasible. E. Social Desirability Aspect The business enterprise is deemed to serve as a great contribution to the governments effort in raising revenues for its functions. These shall be in the forms of income tax, permits, licenses, and other fees. The society will benefit as a whole because of its ergonomically design at the customers comfort. Its design will help not to worry about their childs posture when they grow old. The introduction of the bag in the market will pave the way of the competitors to lower their prices in order to maintain its competitiveness. The unemployment rate in the country will get low because this will provide jobs for the families. In this light, the manufacturing of the bag will attain its desirability and acceptance. Tags: project feasibility study bag, sample Category: Sample Feasibility Study | Comments Off Project Feasibility on the Production of a Shoe Insole Deodorizer February 8, 2011, 9:56 am project feasibility

Title: Project Feasibility Study on the Production of a Shoe Insole Deodorizer using Activated Carbon and Baking Soda Proposed Brgy Anupul, Bamban, Tarlac Proponents: Eda Ferdinand Jane Gian Divine Grace B. Tuazon Degree: Bachelor M. Carlo Location:

S. D. Delos R.

Castro Constantino Santos Sotelo

of

Science

in

Industrial

Engineering

School: Tarlac State University Date: March 2003 Brief Description of the Project

This project proposes to produce a shoe insole deodorizer using activated carbon and baking soda as the active ingredients. The product shall be branded as POWER SOLE. It is a flat insole type deodorizer that can neutralize the odor and absorbs moisture on foot caused by sweating. It can also serve as a shoe pad for loosed shoes. The product has five (5) sizes (5,6,7,8 and 9) to cater different foot sizes it has also a suggested life span o one (1) month, but this will depend on the lifestyle of the person using it. Summary 1. Management Aspects of Findings:

The Power Sole Enterprises shall be a pre-operate for 12 months before its normal operations. The enterprise shall be a partnership type of business organization. The business shall employ its personnel, which shall be headed solely by the plant manager who shall supervise the production, administrative/finance, and marketing officers. Under these officers are the production laborers, warehouse man, product inspector, accounting clerk, security guards and driver respectively. All personnel shall come from the province of Tarlac. Giving importance to the nearby towns where there are skilled workers in relation to this kind of work. The compensation of the personnel shall be based on the existing labor code. The enterprise shall pay Php 1,291,584.00 for its salaries/wages during the first year of operation. Benefits such as SSS, EC and PhilHealth shall be given to the employees. Every year of operation, the enterprise will hire one (1) additional production to meet the increasing demand of the product. 2. Marketing Aspect The marketability or salability of the proposed product is anticipated, since this project entails comfort, easy and convenient to use compared to existing foot deodorizer. The demand of the product shall be based on the past demand of foot deodorant products consumed by each household population of Tarlac Citys urban barangays, and the supply shall be based on the number of foot deodorant purchased from several distributors/suppliers. The market share of this product is 42.05% of the average yearly demand from 2003-2207, which is equivalent to 178,546 pairs of shoe insole deodorizer but considering the result of the survey conducted by the researchers, the researcher had decided to increase the average capacity of the plant from 178,546 to 1800,000 for the first year of operation. The proposed selling of the product shall be Php 16.50 which is inclusive of value added tax (VAT). The project will sell the proposed product in cash discount basis. And limited its retail price to 20% increase from the set factory price to the retailer (distributor) to achieve the pricing objective of meeting the existing price competition in the market. The Product shall be introduced and promoted through posters, billboards, banners and radio ads. The proposed product shall be packed in a vacuum-sealed transparent plastic packaging material with a descriptive label, which contains features and specification of the product, and finally the packaged products are placed in a carbon box for protection in the storage and delivery. The outer surface of the box is printed with the product name, the description or specifications, and the name and address of the manufacturer The product shall bear the brand name POWER SOLE, which signifies the characteristic and nature of the product.

3. Technical Aspect The proposed product is a shoe insole deodorizer using activated carbon and baking soda. The activated carbon is part of the product because it can absorb odors and volatile organic compounds. We also have to add the treatment of the foam and cumbelli to help activated carbon to help activated carbon to neutralize the odor. In this study, we conducted laboratory tests to determine the volatile content of activated carbon before and after used. We found out in testing activated carbon, with the use of a gravimetric oven, that when it is not treated, only 3.423% of moisture will be absorbed by the carbon and 45.181% was absorbed by the carbon a exposed naked on the humid environment When the researchers treated the carbon, they did not absorb moisture of 43.5 In conclusion, before the manufacture of the product, see to it that it was treated An odor test was also conducted to determine the effectiveness and lifespan of the product. Based on the test, the suggested lifespan of the product is one month. The manufacturing process is a continuous processing wherein the workers must meet the target output per day. The capacity depends on the expected market share of 42.05%, which us 278,546 pairs of shoe insole deodorizer But the researchers decided to product 180,000 pairs in the year of operation due to the consideration of the result conducted by the researchers for the willingness of the respondents to try and buy the proposed product. The plant will be producing an average of 180,000 pairs a year, that is 15,.000 pairs a month or 750 pairs a day. Some nearby hardware and electronic suppliers supply machineries and equipment. But other equipment will be purchased in Manila. The plant shall be located at Brgy. Anupul, Bamban, Tarlac, the productivity center of the town. It is located at the back of the Municipal Hall building which is 100 km. from Manila. The transportation is so easy because it is along the highway. The availability of manpower will never be a problem; customers will be assured of economical and fast delivery of the products due to the project proximity to the raw materials, suppliers, and to its target market. The hiring of labor forces will not be a problem since the plant requires a minimal number of employees. The Tarlac II Electric shall supply electricity and water requirements of the plant. The productivity center has an area of 1,260 sq.m. half of the area will only be occupied. The enterprises shall pay the monthly rentals of Php 20.00 per sq.m for the 630 sq.m floor area or at Php 12,600.00 monthly with escalation rate, payable within the first week of each month.

The waste material will be in the form of scraps, which will serve as another source of income for the enterprise. The proposed project is environment friendly because it will not affect the nature during or after producing it. 4. Financial Aspect The financial needs of the project shall be sourced from the partners equity. Each of the five (5) partners shall contribute an initial amount of Php 150,000.00 in cash which is Php 750,000.00 the said amount is estimated to be used in all expenses to be incurred during the pre-operating period and during the first half of the year of normal operations. All purchases shall be on cash basis and sales are on cash discount basis with term payment of 5/15 net 30. the projects liquidity ratios are computed to be 6:1, 8:1, 10:1, 12:1, and 15:1, on the first, second, third, fourth and fifth years, respectively, which shows that the project can liquidate its total current liabilities very satisfactorily. The rates of return on investment for the first five years of normal operations are 16.32%, 30.81% and 39.35% respectively. 5. Social Desirability Aspect The project is aimed at helping individuals who have an unpleasant odor and foot moisture. The business enterprise shall give a great contribution to the government because of the money paid in the form of taxes. These taxes can be paid in different forms. Through the introduction of this business, consumers will be given more choices for the same effect. The producers of the raw materials can increase its profitability. The competing products can also lower their process because of increased competitors. Also there will be a decrease of unemployment by giving jobs to individuals when they will be hired, which will improve their lives and the society as a whole. Tags: project feasibility, shoe insole Category: Sample Feasibility Study | Comments Off deodorizer feasibility study

Summary of Conclusion for Feasibility Study of Snack Stand July 15, 2010, 1:11 am Marketing Aspects 1. The Snack stand will be very much positive in offering a lot of services to satisfy customers needs, accept suggestion and criticisms to improve our business 2. Snack stand will utilize with honesty and credibility thru our products and services.

3. Snack stand will be always open-minded to those other competitors and will seek only the best. Technical Aspect

1. The final location of the business will be at the Common Terminal, Balanga City, Bataan. 2. Raw materials will be obtained during its freshness and nearness to the source which is Elizabeth Supermarket in Balanga City itself. 3. The management will provide cleanliness of the stall, especially the food for satisfaction of customers. Management Aspect 1. The best organizational structure to adopt in the same manner communication will be facilitated from the top to bottom and from the bottom to the top. 2. The democratic atmosphere will always prevail in the business to ensure hormones interpersonal relationship between management and personnel. 3. The Snack stand will develop the service activity to satisfy the need of the customer. Socio-Economic Aspect 1. The Snack stand will be very much responsible in promoting environmental, clean air act and proper waste disposal. 2. Taxes assured for the city government. 3. The partners will make sure of the observance and God-fearing to all of them. Financial Aspect 1. The amount of fifty thousand pesos (Php50,000.00) is substantially enough to put up the proposed project Snack stand. 2. Based on the projections as depicted by the financial statements, the proposed project is a kind of lucrative undertaking. 3. The proponent of the project will be responsible in producing the capital requirement. Prepared by: Arde Reyes

Tags: feasibility study snack stand, financial aspect, management aspect, socio economic aspect, technical Category: Sample Feasibility Study | Comments Off Management Aspect Feasibility Study for Snack Stand June 15, 2010, 8:32 am

aspect, marketing aspect

The central idea of management is to make every action or decision help achieve a careful chosen goal. The word management is also used to mean the group of persons called executives who perform management activities. Objectives 1. To keep the subordinates be alert to what is expected to them. 2. To know the duties and responsibilities of each member and personnel. 3. To know different strategies to be able to achieve the companys goal. Description of Activities 1. DTI Permit Application The business name of GF Snack Stand should be register with the Department of Trade and Industry. It would take only four days to five days before the permit is receive. If there as no other name of its type. Three (3) different name should be apply so when one is approved, so they can use other applied business name (see appendix) 2. Rental Space The project business will be located at Bataan terminal at 2nd floor Ibayo, Balanga City, Bataan. The application will only about three to four weeks before it is approved. 3. Mayors Permit The Mayors Permit application will acquire the submission of the following:

a. SSS b. c. 4. TAN (Tax Account Number)

Clearance Sanitary

Permit Permit DTI

The project business will be registered at the Bureau of Internal Revenue District Office No. (1020) located at Capitol drive, San Jose, Balanga City. The following forms should be accomplished with necessary attachments. BIR FORM No. Attachment Required, Mayors Permit and DTI Permit 5. Buying of machineries and equipment Involves the acquisition of the necessary machinery and equipment in the food snack as mentioned in technical aspect. 6. Promotion Includes advertising and personal selling partnership in a variety of promotional activities to inform customer about products and service and to encourage them to buy. 7. Start of Operation After securing all the necessary permits and other needed materials. The said will be now ready to operate. C. Organizational Structure Through GF Snack Stand is just a simple business, the organization structure will have a simple flow. It is not as complicated as big ventures. Over Cook Utility Man 1, Utility Man 2 D. Personnel Structure The GF Snack Stand is required to have the members of personnel and service crew. All 1, manager Cook / Cashier 2

Staff Cashier Cook Utility Man 2 E. Duties and Responsibities

Over

all

Manager

1 1 2

1. Over-all Supervise the Computer the - Assist the customers 2. Prepares - Cooks the items/products 3. Prepares - Cooks the item/products

Manager overall operation total amount of

/ of the

Cashier the business purchased item

Cook the necessary

1 ingredients

Cook the necessary

2 ingredients

4. Utility In charge of Delivers items In charge of buying - In charge of the inventory 5. Utility

Man cleaning the within the raw materials from

1 workplace vicinity suppliers

Man cleaning within materials the the from the

2 workplace vicinity suppliers

In charge of Delivers items In charge of buying raw - In charge of the inventory Excerpt from Management Project by Arde R. Reyes

Tags: business requirement, management feasibility, organization feasibility, snack stand management Category: Sample Feasibility Study | Comments Off

Business Feasibility Study Snack Stand June 7, 2010, 2:08 am A. Name and Address of the Business The GF Snack Stand (Good Food Snack Stand) is proposed to be located at the 2nd floor of the Bataan Common Terminal, Ibayo, Balanga City, Bataan. B. Nature Business The GF Snack Stand offers a wide variety of snacks and beverages. It caters the need of the persons in transit and others who are waiting for their ride home in the said common terminal. It also provide hip and soothing music to those who are weary from work and school. The menu mainly consists of chicken, ham, ham and egg and hotdog sandwiches, fishballs, kikiam, squidballs, french fries and juices such as gulaman and pineapple juice. The said snack stand is open Mondays through Sundays from 7:00 AM to 7:00 PM. Management Aspect 1. What are the roles and responsibilities of each personnel? 2. What are the different strategies were going to use in order to cope up with the competition? 3. How can we cope up with the competition? Financial Aspect 1. How much will be the total cost 2. How much is the contribution of 3. How much profit were going to earn this kind of project? Socio-Economic Aspect 1. How can the business contribute to the reduction 2. How can the business contribute to 3. How can the business contribute to the economy? Excerpt from Management Project by Arde R. Reyes of unemployment? the community? of the each project? member?

Tags: business feasibility study, Snack Category: Sample Feasibility Study | Comments Off Sugar Mill Feasibility Study March 2, 2009, 8:04 am Name of the Enterprise

Stand

Feasibility

study

This proposed sugar mill shall be called as Sweet Sugar Incorporated, obviously sugar is sweet and sweet is sugar. Thats why it shall be called as Sweet Sugar Incorporated. Sweet Sugar Incorporated shall have its own plant located in Sitio Maguindong, Luakan, Dinalupihan, Bataan. The site was chosen because its strategic location, where the supplies of public and private services are adequate and labor supply and raw materials are readily available. Sources of Raw Materials The plant shall have its own sugarcane plantation near the mill and the plantation shall be adequate in land area that will produce the needed raw material for sugar. Availability of Transportation The plant site is strategically located in Sitio Maguindong, Luakan, Dinalupihan, Bataan where transportation is not a problem. The plant is readily accessible to the workers. The finished sugar can be readily delivered to the market. Project Long Range Objective The Sweet Sugar Incorporated shall stick to its obligation and responsibility to its consumers of providing and producing the highest quality of sugar. No toxic materials shall be used or if there is, it should be properly disposed. It also respond to the needs of the barangay where it is located in order to help its progress. The Sweet Sugar Incorporated shall be the number one product and supplier of high-grade sugar throughout Luzon and its neighboring provinces, and if expansion is needed, it shall be done without overlooking its primary objectives.

Mode of Financing Financing shall come from the shares of the stockholders/owners of the Sweet Sugar Incorporated. If ever the shares cant cover up the expenses of constructing the plant before its operation, the Sweet Sugar Incorporated shall apply for loans which will give the maximum output for the plant. When business is already in operation, its liabilities and loans shall be paid from the sugar revenue Market Study As Bataan is situated geographically near the center of the Philippines, the finished product can be easily transported to the neighboring provinces in the country. Manila, the leading distribution center in the Philippines will be recipient of greater bulk of the product. Analysis of Market Demand and Supply Sugar is one of the primary commodities of the people, thus it is very important to have big supply that will cover up the big demand for sugar. The establishment of this sugar mill will greatly help our fellow Filipinos and most of all, our economy. This sugar mill will increase the sugar supply in the market, thus lessening our importation of sugar which is more expensive in cost. Market and Marketing Strategy Vigorous effort should be expanded to secure a market before a commitment is made to build a sugar mill if it would be most desirable to have the financial participation of one or more major users who can guarantee the purchase of substantial portion for the procedure production. During the past years, several overtures were made in this direction which revealed the opportunities existing. Scale and Volume The receiving of raw materials supply condition market potential and engineering should be considered. It would have production line which represent 769,434 tons per unit day. The output of the plant will depend on the production conditions.

Sugar Marketing Operation The structure of general framework of market situation is already been said of the manner in which selling, shipping, financing and all other commercial aspect of marketing are out inside the general framework. These function rarely been described except by and for the specialist concerned with them. They are the essential link, however, providing the customers with that they want and the sugar industry with their income. The successful selling of the product ultimately determine the prosperity of every one in industry if it is not sold successfully all the efforts of the farmers, millers and readiness with their employees and the most of business which supply and service them will suffer. The final customers are their most important millions of housewives buying sweets or soft drinks not only 4 lbs. of sugar and tin of golden syrup but also the tin of jam. Market Distribution Pricing Pricing should follow the established market prices and practices which in turn are determined by the forces of demand and supply, however because of uncertainty of sugar during the start up period, some prices concessions should be made in order to break into market. A suggestion that is to 20% reduction from established market prices be affected on the first year output. Consumer Surveys Everyone is using sugar everyday, but assumed of sugar feeds are centrally as possible within the area of cane fields, as this will facilitate the transportation of cane with less rolling stock and other fixed charges for their department. Moreover, easy cane supply, so necessary for a economical grinding, will secure to the factory. The direction of the prevailing wind and its accessibility to the factory and dwelling should be ascertained to avoid dust, ashes, smoke and odor of refuse going in wrong direction. Healthy surroundings are paramount importance to the employees. Standing and deterioration water must not be allowed near the factory. Technical Study

Services Offered: The proposed plant site at Sitio Maguindong, Luakan, Dinalupihan, Bataan offers a plentiful supplies of water and power. The site offers adequate supply of water for growing sugarcane, and power for the production of sugar. It also offers adequate supply of laborers, which is considered more important than all the other factors, especially when skilled and unskilled laborers are required. Labor Skills required The company will hire Filipino larorers in sugar cane manufacturing. Laborers near the company site and more preferable to the employees to insure promptness and can do overtime work when needed Another important reason is that people from nearest place can easily transport with their convenience since the company is small, the working force will be required from town itself or its vicinity. The company on the other hand will give assurance to the workers like a good working condition, facilities for a conductive maintenance of their health incentives and many other benefits required by the labor code, plus benefits given by the company itself. The Project Site Sitio Maguindong, Luakan, Dinalupihan, Bataan was chosen the best region of all sugar plantation in the Philippines due to its abundant supply of labor will not be difficult to achieve as most barrio folk are quite hardworking and industrious. Another reason is because of availability of raw materials and have favorable conditions. The plant would be erected near the national highway which will enable the transportation of finished product to the opposite provinces of course, sugar central will increase their yearly supply of sugar production thus helping the sugar industry. The determination where sugar cane factory is to be located is purely an agricultural one. So far, it is referred t the tract of land which has to be adequate for growing sugar cane fr a period of years and the location where climate condition and rainfall are much that successful crops to be expected. As Bataan is situated geographically near the center of the Philippines, the finished product can be easily transported to the neighboring provinces.

Waste Disposal The various waste materials produced by industries maybe classified generally as solids, gaseous or liquid. Solid waste are directly related to a loud pollution gas liquid to air and water pollution, although all of them have combined and interrelated effects on pollution. Methods of Waste Disposal 1. Eliminate of source. The first approach to a waste disposal problem requires a careful attention of the source of pollutants. 2. Recovery of waste products. Before deciding how to discard waste materials, the engineer should always think for recycle, reuse or for sale. 3. Regulate how to fit dilution 4. Divert waste to other points 5. Waste treatment. A very expensive process the recent encountered by the major cities of the world due to smog problem and the question as due to how to dispose gaseous waste, electrostatic precipitators, aggrometrators, washers and many other kind of equipment have been used to remove atmospheric contaminants. Disposal of solid waste materials on land is always a complicated problem, incineration and burying are possible solution and the best is by recycling. A judicious plant design eliminates a potential hazardous operations should be separated from various plant facilities and sufficient protection is made, possible sources of fire by eliminating all the unnecessary ignition sources such as flame, spark or heated material, welding, smoking, static electricity and the spontaneous combustion of waste materials. Chemicals can cause dangerous burns and accidents are bound to occur rotating sections of equipments should be amply protected to prevent accidents. Management Study For Pre-operating Period: During the pre-operating period, the stockholders are responsible to deal with some government and private agencies to secure the necessary document and deal in financing institution for financial needs of the project. These persons are the one to negotiate for the constructor. The supplier of the materials and by the hired construction firm and the

supervision will be integrated with the said contract. Consultant shall be hired also to ensure the safety of the plant and to supervise the installation of the equipment. For Operating Period: During the operating period, the stockholders handled the key position in the company. The business is organized and incorporate with their respective holdings: Board of Directors Chairman of the Board Member Member Member Director Accountant Director

Maintenance - Production Director

and Company Sales

Material

The company sees to it that hired accountant and supervision directors are all licensed by the professional Regulation Commission (PRC) in their respective professions. All these persons should have at least an experience in their respective jobs. The company accountant is responsible for the books and the preparation of the company book of accounts. He also prepares the payroll and he examines the financial status of the company. The sales director will assists the selling and finding markets for the products. The production director is responsible for the production in order to insure for good productivity and minimize production or manufacturing costs. The maintenance and materials director is responsible for the safety programs and maintenance of the plant. He should set the guidelines and train workers about safety and accidents and be able to continue the flow of the product even machine breakdown occurs, which are hindrance to the companys re-productivity programs. Financial Study

Major Assumption An industry like sugar mill requires a big capital. The stockholders shall provide the needed capital for the establishment of the whole business. Funds shall be given for the purchases of the necessary equipments and necessary materials for the construction of the building and for the purchase of land. In case that there is no sufficient fund, the company shall apply for loan in the bank which gives the lowest interest. During operation, the company shall pay its obligation out its revenues. Equipment cost less than P40,000,000.00. Building construction (payment for the labors included) costs more than P20,000,000.00. Land (for the plant site and sugar cane plantation costs P20,000,000.00. The stockholders shall produce a budget of not less than P80,000,000.00. Socio-economic Study Taxes and Restricting Law Bataan offers the lowest tax rate for industries like sugar production, and the best of Bataan is, they offer, provide government subsidy and help to the industries located in its territory. Provincial and town legislation are also important. The sweet sugar laws are more stringent in Bataan. Sweet Sugar Incorporated will help boost the economic status of Dinalupihan, Bataan because it will provide a great number of jobs for the unemployed folks in the area, thus, giving them more opportunities in life. Sweet Sugar Incorporated shall pay all its tax obligations on time. This is a partial study of Engr. Eric Lanosa. Tags: Feasibility Study, sugar Category: Sample Feasibility Study | Comments Off Some Things to Consider in Establishing a Food Business February 20, 2009, 5:28 am mill

Due to economic crisis, it is hard to decide which business should be started. In order to minimize the risk, a thorough study must be undertaken. Food business is very rewarding since man can give up almost everything except food. Men have to eat in order to live. But of course, you will also to be considered the location, security, market, management, facility, and financial to certain that the business could be carried out profitably. Examples of food business are restaurant, canteen, fast food, bars, coffee shop and many more. Location Location is one of the important things to consider when planning any business. Choose the best place to establish a food business. The location should be accessible to your prospective customer. As much as possible, it should be located near colleges, municipal, church, hospital, public and private offices and residences. Security Safeness of your business should also be considered. The business is secure if it is located around several establishments. Market Know the population of your place in order to know if there are enough people who will patronize your food business. Also, observe your competitors to be able to assume the demands. Food offers must be affordable to the people who live on your community. Facilities Find out the facilities to be used in your business such as the tables, chairs, cooking utensils, etc. Management Identify the personnel to be hired. Financial

Estimate the total capital requirements. Forecast the monthly income and expenses of your food business in order to know the potential profits. Consider also the sources of financing. Waste Management Proper disposal of waste should be implemented. What will be the waste disposal method to be adopted. Tags: food Category: Sample Feasibility Study | Comments Off Example / Sample of a Feasibility Study September 9, 2008, 12:21 am Feasibility Study of Establishing Cindys Fast Food Branch Along Plaza of Balanga, Bataan 1. General Objectives 1.1. Description of the Business Project The proposed business will need a two-storey building in a 2,000 square-meter lot with a parking space at the rear. The customer will drive in the left entrance greeted by the watersprinkled Indian trees partly shielding the establishment from the fumes coming from the busy street. Embraced by the multi-colored lights, the trees will set the cosmopolitan setting to a rustic atmosphere. The building will be constructed to hide the stockroom complementing the architectural masterpiece. The smoothly cemented exit passing through the well-manicured lawn will draw sights of satisfaction from the customers. The state-of-the-art tables, chairs and utensils will enhance the customers feeling that they are in a five-star hotel. Very affordable, the food will enthrall every customer to come and savor the food over the widely spaced tables on the immaculately marbled floor. The electronically flushing system of the restrooms will motivate the customers to force their friends and relatives to frequent this new Cindys Branch at the heart of the Balanga. 1.2. Project Time Table All minor details considered, the project will start serving the five thousand targeted daily customers within five months. The contractors will complete the fence and the framework of the building in the first month. They will finish the walls and the floors in the second month. business

They will install the electrical and the air conditioning units in the third month. After the first and second layer coating, they will complete the final painting in the fourth month and finally they will landscape and plant balled-trees in the fifth month. As the project will be in progress, the company will busy the facilities to be used. 1.3. Management of the Business With three managers alternately scheduled on the eight hour duty to man the 95crew in the 24 hour service, the business will surely satisfy the customers, propelling profit to soar. The personnel will make a customer feel that he is the only one served amidst the queuing multitude. The high wage given by the company and, likewise, the humane treatment of the superiors will inspire the crew to render machine-precise service. 2. Product and Market Aspects 2.1 Market Outcome A variety of expensive fireworks commence the business to attract the children, students, parents, and professionals. This opening blast will have been advertised a month before. The initial big crowd from the different districts of the province will keep growing to actualize the managements vision that this Cindy Branch will be the most profitable among the food chains in the City. 2.2 Market and Selling Price The customers can order from a variety of choices in the counter staffed with beautiful and handsome ever-smiling crew. The waiters will serve the orders in the well-crafted, smoke free dining areas with both oriental and western motifs to fit their number and their tastes. These areas will enhance customer privacy as the customers enjoy eating while talking about the gossips of the town, or as they engage in a highly intellectual calisthenics about a hot political issue. The area will also conduce lovers to cement their relationship with their soul-penetrating interlocked gazes that only lovers could fathom, as they savor their food. 3. Technical Aspect 3.1 Location Factor

At the center of Balanga Plaza, this food center will surely draw customers from the crosssection of society. The following factors will back-up the companys foresight: 3.1.1 Topography The 2,000 square-meter lot does not need labeling because the area is already flat and it is located in high location. No matter how strong the typhoon will be, the rains will not flood the area. The customers will not be drawn away from enjoying the services of Cindys. 3.1.2 Cost of Land The fertile business venture will cheapen the current P20,000 per square meter piece of land. The forty five million peso worth of property will double after only three years of operation. 3.1.3 Security The place will be safe. Secretly installed cameras will monitor every move to ensure the security of the customers. Four security guards simultaneously assigned to the area will guarantee the safety of the clients. This will be backed up by policemen assigned at the outpost nearby. 3.2 Size and Layout of the Building To maximize the 40 x 50 meter land area, the engineers will erect the 20 x 30 meter proposed two storey building, leaving five meters at both sides and 18 meters fronting the street. Only two meters will be left at the back of the building. This will ventilate the establishment. 3.3 Equipment The Bataan Builders will construct the building. This construction company will use modern building equipment like a cement mixer, caterpillar, automatic digging drill, and other state of the art construction materials. 4. Project Cost 4.1 The Land and the Building This project will cost about P 45,000,000.00 which is roughly broken into the following:

Cost of 2,000 meter lot Cost of 2 storey building Accessories and Equipments P 1,000,000.00 Total Cost P 45,000,000.00

P P

40,000,000.00 4,000,000.00

The 45 million pesos worth of land is the biggest of the capital investment but it is worth it because unlike the other expenses, the land value will appreciate through the years. The contract with the Bataan Builders for the proposed two-storey building is P 4,000,000. This includes materials and labor. With the five-month paying scheme, Cindy will pay P 800,000 every month until the last month. The food center will need P 1,000,000 for the imported accessories like tables, chairs and other needs. 4.2 Franchise The food center will pay the current P 1,000,000 Cindy franchise. 4.3 Sources of Financing The proprietor will put in P 5,000,000. The remaining P 40,000,000 will be borrowed from the bank. 5. Business Operation 5.1 Revenues With 50 thousand monthly net income target from about five thousand daily customers, the proposed branch projects the following net income by month and years: First First month year P P P P 1,500,000.00 18,000,000.00 36,000,000.00 54,000,000.00

Second year Third year Fourth year P 72,000,000.00

After four years of operation, this venture will have gained P 11,000,000 as shown in the following computations:

Net income in Minus the sum Difference P 11,000,000.00 Loaned money Interest of Franchise Maintenance Total P 61,000,000.00 from loaned

four of

years investments

P P

72,000,000.00 61,000,000.00

the bank money P

P P

42,500,000.00 17,000,000.00 1,000,000.00 500,000.00

5.2 Accessories and Equipments Being of high quality, the accessories will still be usable after four years. However, P 500,000 pesos is allotted for maintenance and replacements of damaged property. Summary The figures above prove how financially rewarding this business venture. Because food is a necessity, a venture like this guarantees 99% success. This is especially so if the location is the Plaza like Cindys Plaza.