Professional Documents
Culture Documents
3 - Technical Aspect
3 - Technical Aspect
TECHNICAL STUDY
Product Description
It‟s undeniable that rice or „bigas‟ as what we Filipinos call it has been an
important part of our daily meal. Unlike other race and culture, we had it as a practice to
eat meals together with several cups of rice to satisfy our hunger and need for energy
and strength. The „Sinandomeng‟ rice which is the traditional favorite of every Filipino
family has 3 types which are the „‟special, fancy and regular”. The SMPC‟s
„Sinandomeng‟ rice is also called as “lamyong” meaning „old rice‟. When cooked, the rice
grain becomes fairly soft and „maalsa‟. Unlike the commonly bought by people,
„Sinandomeng‟ rice gives a delicious aroma and taste after being cooked. Also, its grains
Product Costing
Table 26
Cost of a Sack of Sinandomeng Rice
Items Amount Quantity Total
Raw Materials Paddy P50 50 kg P 1,000.00
Sack 2.00 1 pc 2.00
Knitting Yarn 0.26 1m 0.26
Labor Costs Operator‟s salary 0.47 14 min. 6.58
Overhead Electricity 3.71 6.67 min 24.75
TOTAL COST P 1,033.59
paddy that consist of 50 kilograms for an amount of P 650.00, while the cooperative is
willing to buy the paddy for P 1000.00 per sack (50kg), which will give them a higher
income if they become a member of the cooperative. Another benefit that the
cooperative will give to its member is their share coming from the total net income of the
Table 27
Cooperative Member’s Benefits
Product Pricing
Table 28
Price of a Sack of Sinandomeng Rice
Items Amount Quantity Total
Raw Materials Paddy P50 50 kg P 1,000.00
Sack 2.00 1 pc 2.00
Knitting Yarn 0.26 1m 0.26
Labor Costs Operator‟s salary 0.47 14 min. 6.58
Overhead Electricity 3.71 6.67 min 24.75
TOTAL COST P 1,033.59
SELLING PRICE 1,650.00
GROSS MARGIN P 616.41
Table 28 shows that a sack (50 kg) of Sinandomeng rice will be sold for
P1,650.00 with the cost of P1033.59 will give a gross margin of P616.41.
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Rice Mill Process
Separation Whitening
Dehulling
of Paddy of Rice
Finished
Grading
Product
Figure 23
Rice Mill Process
Dehulling
rice kernel. Dehusking is achieved in this machine by passing paddy through rubber
rollers and by friction. Husking generally cannot be done 100% and hence, will still be
having the unhusked kernels. These are separated in a later process and recycled.
Separation of Paddy
In the dehuller, some part of the paddy (about 15%) will escape dehulling. This
Whitening of Rice
During whitening and polishing bran layers are removed from the rice. This not
only enhances the appearance of the rice but also increases its shelf life. The bran
removal is best achieved in several steps to ensure evenly milled rice grains with
minimum broken and optimum whiteness. In the whitening process, bran is removed by
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creating high friction forces between the rice grains. Whitening process results in smooth
Grading
Grading removes brokens from head rice and sorts rice into fractions of different
length. Head rice, brokens and tips are further separated by a sequence of indent
Finished Product
Rice produced by the rice milling machine are now ready for bagging and
packaging.
Business Location
Province of Pangasinan.
Figure 24
Business Location
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The cooperative is to be located in Pasibi East, Urbiztondo, Pangasinan. The
proponents chose the location because the area is just near the rice fields and at the
Business Layout
8m
10 m
Figure 25
Business Layout
Legend:
1 - Rice Milling Facility
2 - Comfort Room
3 - Administration Office
4 - Storage
The total area rented for the office and rice milling facility of the cooperative is 80
sq. m enough to shelter the machinery, supplies, and the administrative office of the
cooperative.
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Production Schedule
Table shows the production timetable from buying of the paddy to the selling of
sacks or rice.
Table 29
Production Timetable
Production Months
Process J F M A M J J A S O N D
Buying
Milling
Selling
The Table 29 above shows the year schedule of the cooperative operations. In
the months of April, August and December, the harvesting of rice grains is conducted.
Following the schedule of rice grain harvest the milling process of the paddy are also
done during those months and the selling of processed rice would also be held.
Raw Materials
After drying the harvested paddy from the field of the farmers, it is now ready for
the milling process. A paddy is a grain still intact with its husk or the rice before
threshing. For the year 2017, 28,000 kilos of rice paddy which is locally harvested of the
farmers from Pangasinan will be the starting input of the production and there is a 15%
increase in the production every year. Aside from the rice paddy, each cavan will use
one rice sack and a knitting yarn to secure the rice sack from unwanted materials and to
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Table 30 presents the total cost of machinery.
Table 30
Machinery
Machinery
Unit Cost Qty. Total Cost
P80,000.00 1 P80,000.00
Bag Closer
P3,700.00 1 P3,700.00
TOTAL P83,700.00
Table 30 presented that the total cost incurred in procuring the rice milling
machine and the bag closer is P83,700.00. The rice milling machine, with a capacity of
450kg per hour, is expected to be utilized for 10 years while the bag closer with a
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Table 31 presents the total cost of electronic equipment.
Table 31
Electronic Equipment
P1,850.00 3 P5,550.00
Exhaust Fan
P959.80 2 P1,919.60
Weighing Scale
P4200.00 1 P4200.00
Telephone
P1,000.00 1 P1,000.00
TOTAL P12,669.60
Table 31 presented the total amount incurred for equipment which is P12,669.60.
Equipment includes ceiling fan, exhaust fan, weighing scale and a telephone.
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Table 32 presents the total cost of furniture and fixtures.
Table 32
Furniture and Fixtures
P1,599.75 3 P4,799.25
Chair
P150.00 5 P750.00
Office Table
P2,500.00 1 P2,500.00
TOTAL P8,049.25
Table 32 presented the total cost of P8,049.25 incurred for furniture and fixtures.
Furniture and fixtures is comprised of square table, chair, and an office table.
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Table 33 presents the total cost of supplies.
Table 33
Supplies
Supplies Unit Cost Qty. Total Cost
Bulb
P84.95 3 P254.85
Fluorescent Lamp
P247.75 4 P911.00
Rice Sack
Knitting Yarn
P45.00 5 P225.00
Calculator
P230.00 1 P230.00
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Log Book
P45.00 2 P90.00
P140.00 1 P140.00
Folder
P5.50 5 P27.50
Ball pen
P5.50 12 P48.00
Wall clock
P135.00 1 P135.00
Padlock
P169.75 4 P679.00
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Fire Extinguisher
P1,499.75 1 P1,499.75
Broom
P100.00 1 P 100.00
Dustpan
P30.00 1 P30.00
Rags
P1.25 12 P15.00
TOTAL P5,585.10
Table 33 presented the total cost of P5,585.10 incurred for supplies. Supplies
include bulb, fluorescent lamp, rice sack, knitting yarn, calculator, log book, bond paper,
folder, ball pen, wall clock, padlock, fire extinguisher, broom, dust pan and rags.
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Employee Uniform
SMPC employees together with the manager will use a shirt with the
Figure 26
Employees’ Uniform
Labor Requirements
People are considered to be the lifeblood of any business organization. They are
very important for the cooperative to operate effectively and efficiently. SMPC will utilize
employees based on the schedule of their shift. In our operation, we need a total number
of manpower: (1) manager, (2) workers, and (1) delivery man. They are the ones who
Manager 1
Workers 2
Delivery man 1
Total Number 4
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Work Schedule
Hours of Operation:
between 12nn and 1:00pm. The operation will be starting at 8:00am, prior
Table 34
Schedule of Working Days of Employees
NO. OF
EMPLOYEE M T W Th F S
EMPLOYEE
BOARD OF
ON CALL
ADMINIS- DIRECTORS
19
TRATION SECRETARY ON CALL
TREASURER ON CALL
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AUDIT COMMITTEE ON CALL
ELECTION ON CALL
COMMITTEE
CONCILIATION
ETHICS ON CALL
COMMITTEE
MANAGE- GENERAL
1 XX XX XX XX XX XX
MENT MANAGER
EMPLOYEE1 XX XX DO XX XX XX
OPERATIONS 2
EMPLOYEE2 XX XX XX DO XX XX
Legend: XX - On duty
DO - Day Off
Utility Requirements
In putting up business, one must consider the necessary utilization needed for it
included.
Table 35
Utilities Expense
Utilities Usage
Electricity 500 Kwh/annually
Water 120 cu. Meter/annually
Telecommunication 12 month bill
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Organizational Costs, Business Permits and Licenses
In order for the cooperative to start its operation, it is mandated to comply with
cooperative.
Table 36
Organizational Costs
Organizational Costs Costs
CDA Registration P500.00
Notarization of Articles of Cooperatives 500.00
Miscellaneous Fees 3,685.00
Total Organizational Costs P4,685.00
Table 37 shows the cost to be incurred in applying for permits and licenses in
Table37
Permits and Licenses
Permits and Licenses Cost
Mayor‟s Permit P2,495.00
Fire 250.00
Garbage 700.00
Brgy. Clearance 200.00
Application fee for NFA 165.00
License fee for Rice Mill Machine 660.00
License fee for Wholesaling and Packaging 6,600.00
Total P11,070.00
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Total Project Cost
The items included in the project costs were the fixed assets purchased at the
expenses were for the initial 2-month operation of the cooperative. Working capital was
Table 38
Total Project Costing
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