CENTRAL COLLEGES OF THE PHILIPPINES

52 Aurora Blvd., Quezon City

A Feasibility Study on
KDJ Creamery
Presented to the
Faculty of Engineering Department

In Partial Fulfillment of the

Requirements for the Degree of
Bachelor of Science in Industrial
Engineering

Solis, Dann Angelo C.

Mary Kriszelle Bautista
Jerome Encarnacion

October 2014

Summary of the Project

I.

Name of the Project:

KDJ Creamery

The business proponent came up with a title JDK Creamery as its name of
the business. JDK stands for the owners name and the word Creamery that is
related to a certain type of dessert that is combined with a popular Filipino yeastraised bread will be its main selling product. And will target potential customers
who want to experience on desserts.
II.

Location

1. TerraPrime Brgy. Tatalon Quezon City

2. Location is one of the major factors to be considered in starting up a business. It must be
assured that it is accessible to the target market. If location is later found to be
incompatible to the situation as to give consideration to its target market, it may
lead the company to failure. Right choice of location means reaching your target customers
and you respond correctly to their market needs.

Figure 1. Location of the Store

III.

Brief Description of the Project

JDK Creamery sell desserts in which cannot be found in normal stores or

restaurants. Our main product is served hot and cold at the same time. Its a bun
filled ice cream deep fried in cooking oil and becomes a golden hot crispy sandwich
filled with cold creamy ice cream goodness that the chef calls CRISPY CREAM
DELIGHT. It comes with a variety of flavors in which the customers can choose.
From Strawberry, Double Dutch, Chocolate, Vanilla to Filipino flavors such as Buko
Pandan, and Ube macapuno. Our aim is to create an ideal dessert which can be
experienced on both worlds (hot & cold) that every people can enjoy.

IV.

Project Summary

1. Market Feasibility
This study justifies the surveys conducted and their results. Based from
the information gathered and studies conducted, projection of the demand,
supply and sales for the first five years of operation is based on the different
factors like the population growth, market acceptability, capacity to supply and
other factors. This study is feasible because the target population is willing and is
capable of availing our products and services. The firm also considers factors like our
competitors and prevailing prices of the suppliers that will affect our prices. Based on our
demand supply analysis, the firm found out that we can supply the available
market based on our production capacity.
2. Technical Feasibility
The main product that the firm is going to offer is a frozen dessert and is
deep fried in less than a minute. Other products considered are donuts and milk
shakes. The company can also offer Halo-Halo as a seasonal product which can
only be served during summer or based from demand. All ingredients will be
highly nutritious and will be picked carefully. Machineries and equipment has
been chosen for the production of the products and their costs are enumerated
as well as other supplies with their corresponding cost. The project is feasible
based on the different aspect that the firm consider in operating this business.
3. Management Feasibility
JDK Creamery is a well-organized thought out business partnership.
Mangers will handle day-to-day operations and will be in charge of 5 clerks for
minor operations. At the moment, the business only has 8 employees but as the
business grows, new employees will be hired. Through a strategic organizational
structure, there will be a smooth operation of the business and also based on the
technical knowhow of the managers, therefore, this business is feasible in this
aspect.
4. Financial Feasibility
The initial investment of JDK is P 6,000,000.00 which came from the partners
contribution to establish this business. There are no other sources of capital aside from
our contribution.

5. Socio-Economic Impact
All businesses will be a great help for the growth and development of the
countrys economy. All of these are only possible if all of the economys
resources will be put to good use and all of its firms will be responsible enough
to perform their tasks and obligations to their respective customers, community
and the government responsibly.
JDK Creamery will help the economy by means of paying taxes through all
of its earnings. With this, the government can perform its funtion by providing
continous support for the business industry, providing projects for the community such
as building infrastructures, public hospitals, strengthening arm forces for the security and
protection of the countrymen and other indispensable projects that will benefit the
people.

Background of the Study

I.

Brief background of the Study

The study is about a dessert that the ideas of creating its main ingredients that
came from a different country will be able to compete itself or even manage to be a part
of the Filipino culture in eating desserts. The firm highly emphasize the taste,
presentation and appearance of the product and not just the experience of eating it.
Filipinos appreciate new kinds of taste. They tend to be adventurous when it
comes to food especially if the food has variations. They tend to compare food that they
originally know the taste of and test the new ones that they not know of, and try to
create an even more profound taste or style of cooking. Thats why the firm have so
many variations or specialties that every province have.
Filipinos are naturally hospitable and food is the basis of their social life. Poor or
not, they always have time to prepare food and serve it to their guests. And in
celebrations, everyone they know, or in some occasions strangers can visit their homes
and eat the food that is prepared for the banquet. They call it fiestas or festivals in honor
of their valued patrons and saints.
II.

Objectives of the Study

1. To be able to produce a dessert for a customer that can eat hot and cold at
the same time
2. To be able to present a food product that can be stylish and enjoyable to eat
3. To increase the level of awareness that creativity is very important to food
industry
4. To line up with other competitors using our unique approach in serving
desserts
5. To offer an affordable but delicious and a satisfying dessert

III.
IV.

Operational Definition of terms

1. Crispy Cream Delight - Deep Fried Ice Cream Sandwich
2. Ice cream Sandwich Ice cream covered with sandwich buns
Scope and Limitations of the study

The study will tackle about the new experience of serving dessert or a delicacy
which is new to the country and how well they will respond to it. To be able to be
accepted as a major choice for potential customers accepted not only its taste, but its
new way of serving it. Products are only limited to those who have problems with
sweets and some illness male and female that can have a huge effect on the
customers health.

Market Study
Marketing is a system of business activities designed to plan, price, promote and
distribute want-satisfying goods and services to present to potential customers. It is
considered as the lifeblood of every business transactions because it is a strategic way
on how to cope up to the needs and wants of the costumers, finding opportunities regarding it,
introduce and market the product, achieve customers loyalty and patronage.
This aspect includes the following topics: demands, supply, demand and supply gap
analysis, marketing programs and the projected sales. The objective of the proposed
project is to delight the customers, not just by meeting their expectation but rather
exceeding and going extra mile. Moreover, its about profit ability. Marketing aspect
serves as the basis of the financial section through the projected demand.
There can be no discussion of profitability or of the other aspects of the study; if in the first
place, there is no demand or market. Every business is practically aspiring for
productivity but practically in order to last in the business world the first thing to take into
consideration is the target market. The costumers will be the key factor to achieve the objectives of
the organization. Finding opportunities and spotting the right market are both important
in establishing a business. Knowing customers demand and supplying them right
products at reasonable prices.
I.

Objectives of the Study

1.
2.
3.
4.
5.
6.

II.

To analyze the market demand and supply of the business,

To define the target customer of the business through market segmentation
To determine the marketing strategies to be applied in the business
To determine the feasibility of the business
To determine the range of the business
To analyze and understand the complexities of the restaurant business.

Methodology

The Group have conducted a survey and among those respondents and their
opinion. The survey was distributed along the area of Brgy. Tatalon Quezon City. And for
the projection the straight line statistical method was used.
The Group also used a formula to obtain the population growth rate in Brgy.
Tatalon Quezon City.
V = Population
Vlatest (2010) = 58987
Vpast (2000) = 45070

)
( ( VpresentVpast
) x 100
Vpast

)
( ( 5898745070
) x 100
45070

= 30.8%

30.8% Divide by 10 years gap = 3.08% is the annual population growth rate
III.

Demand

The demand is essential to every type of business there is. This is the answer to
every customers wants and needs; basically the lifeblood of a business. Knowing the
demand will help us to determine the trend for our products. Analyzing the demand thoroughly will give
the projection of the total number of quantity of each product that the firm is going to
produce daily, weekly, monthly and annually.
1. Consumption for the past years
Since there is no statistical data recorded in National Dairy Authority and
DTI regarding the demand for ice cream, past demand is computed by getting
the target population in Brgy. Tatalon Quezon City for the year 2009 2014
multiplied by market acceptance which is obtained by getting the percentage of
respondents who are willing to try the deep fried ice cream sandwich which is
96% and multiplied to the annual population. It increases annually based on the
annual growth of population which is 3.08%.

Year

Population

Market Acceptance

Past Demand

2005

50,445

81.6%

41,163

2006

52,048

81.6%

47,103

2007

53,702

81.6%

48,600

2008

55,409

81.6%

50,145

2009

57,170

81.6%

51,739

2010

58,987

81.6%

53,383

2011

60,804

81.6%

55,028

2012

62,677

81.6%

56,723

2013

64,607

81.6%

58,469

2014

66,597

81.6%
Table 1: Past Annual Demand

60,270

2. Major Consumers of the Product

Market Segmentation
Geographic

Location
Climate
Barangay
Region
City
Density of the Area

: Terraprime
: Wet and Dry
: Tatalon
: NCR
: Quezon City
: Urban

Demographic

Age
Gender

: 13 to 60 years old
: Male and Female

Psychographic

Personality
Lifestyle

: Curious
: Outgoing and Adventurous

3. Projected Demand

Year

Population

Market
Acceptance

Projected Demand

2014

66,597.00

81.6%

60,674

2015

69,911.43

81.6%

62,543

2016

71,706.33

81.6%

64,412

2017

73,501.22

81.6%

66,281

2018

75,296.12

81.6%

68,151

2019

77,091.02

81.6%

70,020

Table 2: Statistical Straight Line Projected Demand

IV.

Supply

Based from the percentage of the survey that the people are already eats ice
cream, the group can now determine our supply
1. Supply for the past years

Year

Population

Market
Acceptance

Past Supply

2005

50,445

23.8%

12006

2006

52,048

23.8%

12387

2007

53,702

23.8%

12781

2008

23.8%

13187

2009

55,409
57,170

23.8%

13606

2010

58,987

23.8%

14039

2011

60,804

23.8%

14471

2012

62,677

23.8%

14917

2013

64,607

23.8%

15376

2014

66,597
23.8%
15850
Table 3: Past Annual Supply (Assumption)

2. Projected Supply
Year

Population

Projected Supply

2,015

69,911.43

16,211

2,016

71,706.33

16,638

2,017

73,501.22

17,066

2,018

75,296.12

17,493

2,019

77,091.02
17,920
Table 4: Statistical Straight Line Projected Supply

V.

Demand/Supply Gap Analysis

This is to determine the Creamerys market share. The gap or the unsatisfied market
is obtained by subtracting the projected demand to the projected supply which shows the
available market for street foods. It also shows the number of persons whom the company needs to
supply to answer their demand for street foods. The firm now shows the gap for every product
using the data from projected demand and projected supply.
Year
2014
2015
2016
2017
2018
2019

VI.

Demand
Supply
60,674
15,850
62,543
16,211
64,412
16,638
66,281
17,066
68,151
17,493
70,020
17,920
Table 5: Demand, Supply and Gap

Gap
44,824
46,332
47,774
49,215
50,658
52,100

Projected Sales/Market Share

All businesses must determine their market share for it will serve as the basis of
their marketing strategies of their establishment. It will be the defining extent of market
that the firm needs to satisfy.
The group concluded that our daily capacity is 200 persons per day to supply per
day and 72000 annually.
Given the Market Share, 15.5% and the annual growth rate of 5% which is provided
by the promotional tactics provided by the business, the group can now determine the
projected market share.
Year
2014
2015
2016
2017
2018
2019

Projected Growth
5%
5%
5%
5%
5%
5%
Table 6: Projected Market Share

Market Share
15.50%
16.32%
17.18%
18.08%
19.03%
20.03%

Others; 18%

Nestle; 30%

KDJ Creamery; 5%

Dairy Queen; 18%

Selecta; 29%

Nestle

Selecta

Dairy Queen

Others

KDJ Creamery

Figure 2: Market Share Pie Chart

Year
2014
2015
2016
2017
2018
2019

Growth Rate
5%
5%
5%
5%
5%
5%

Annual Sales
Monthly
1,082,880.00
90,240.00
1,137,024.00
94,752.00
1,193,875.00
99,489.60
1,253,568.96
104,464.08
1,316,247.41
109,687.28
1,382,059.78
115,171.65
Table 7: Projected Sales

Daily
3,008.00
3,158.40
3,316.32
3,482.14
3,656.24
3,839.05

VII.

Marketing Strategies
1. Product
People today are fond of eating foods especially if its something new or
unheard of. This will serve as a competitive advantage of our business for market
penetration. The products include Deep Fried Ice Cream Sandwich, Ice Cream,
Milkshakes, and the seasonal Halo-Halo. The products will be served directly from the
freezers but the Deep Fried Ice Cream Sandwich will be cooked before serving. They
also come in variety of flavors which customers can choose from. Of course
preparation, presentation and appearance of the product is vital for the customers to be
attracted. Quality and safety of the products is also important for the assurance of the
customers.
a. Product Category / Quality and Style
b. Brand
c. Packaging
2. Pricing
Item

Cost

Ice Cream (Whole Milk)

15

Ice Cream (Carabao Milk)

12

Crispy Cream Delight

30

Crispy Cream Delight C

25

3. Place of Distribution

Brgy. Tatalon Quezon City and Along the Area

4. Promotion/Advertising
The firms Advertising Objectives must contain
1. Specific Communication Task
2. Accomplished with a Specific Target Audience
3. During a Specific Period of Time
Informative Advertising - Builds Primary Demand
Persuasive Advertising - Builds Selective Demand
Reminder Advertising - Keeps Consumers Thinking About a Product.
a.
Poster
Posters will be placed in our store. The design of the poster can able to catch the
attention of the customers because of the information provided as well as its aesthetic.
Chosen colors are pleasing to the eye and will surely boost the interest of the customers
to eat to our restaurant. Two (2) posters will be produced which are good for three (3)
months.
The computation would be:
No. of pcs X Unit Price X No. of times per month
2 X 150 X 1 = Php. 300.00
b.
Website
We are now living in the modern world and surfing to the internet is one of the
easiest ways to have quick access. The proponents will be using free website in order
to reach wider range of possible customers. This will be of great help for them to know
the concept behind KDJ Creamery. It will also provide good communication relationship
in ways that, we will be giving information and they will be giving comments and
suggestions for product improvements and other concerns.
c.
Flyers
Flyers can convey wide range of possible buyers for it can be brought to other
places. The store will produce 200 flyers per day. These flyers will be distributed twice a
week or eight (8) times in a month. Flyers will be given in the first three (3) months of
the business until it will get its loyal customers
The computation would be:
No. of Pcs. X Unit Price X No. of times per month
200 X 8 X 8 = Php.12, 800

Technical Study
Once determining the market size and area and the product and demand, we can
now analyze the potential technical feasibility of this project. On this stage, we will be
dealing in the allocation of the resources that will be needed in order to satisfy the
market. The technical soundness analysis will be considered complete if all pertinent
technical aspect of the project have been taken into account in the analysis and if the
planned construction or procurement conforms to accepted standards and practices.
The estimated cost of the project should be as low as any other reasonably available
alternate which would produce the intended results. The objective of this portion of the
feasibility study is to determine to what extent the project meets the technical
soundness criteria.
Prior to projecting technical feasibility, the technical requirements of the project must be
analyzed. This may be done by:
A. Prior to projecting technical feasibility, the technical requirements of the project must
be analyzed. This may be done by stating:
- The quantity and quality of products to be produced
- The specification of raw materials
- The supplies to be used
- The labor needed
- The utilities needed
- The waste disposal methods
- Transportation necessary
- Plant location
- Plant size and layout
- Machinery and equipment
- Production schedule
- Manufacturing process

B. Providing estimates of total project cost and enumerating the major items of capital
cost.
C. Listing down in detail estimated production cost and overhead cost that will go into
the operating of the proposed plan.
D. Taking into consideration any major technological development in the industry which
may affect the commercial or technical soundness of the project. Once the technical
requirements have been prepared, the project proponent is ready to analyze
technical feasibility.
I.

Objectives
1. To plan a layout on the store size and illustration
2. Combine the corporate marketing strategies with our own to build volume
quickly.
3. Maintain food and labor costs consistent with High Ridge
4. To determine the process to be used in obtaining the products and how to
distribute or deliver it to the market
5. To define the human requirements and regulations of the business
6. To determine where to acquire the supplies and necessary utilities for the
operation of the business
7. To determine the supplies needed and all necessary machineries and
equipment to be used in the operation of the business
8. To know the methods of waste disposal for the maintenance of the store

II.

Products

Our main product will be the sorbet, gelato, soft and the hard ice cream that the
ingredients are found only in the country which it has best to offer. This will be the
Creamerys main product. But our innovation is the deep fried ice cream sandwich
where itll be the hot (or cold) topic in the country. Its a frozen bun (pinoy pan) and
inside of it is the creamy ice cream. Of course the ice cream comes also with a variety
of flavors and can also be either made from natural carabao milk or the common cow
milk. The bun is frozen to a certain degree, and when it is served, it will be deep fried to
a hot grill for a certain amount of time. And after that it is then served to the customer
hot and crispy on the outside, cold and creamy on the inside.

1. Product Description
KDJ Creamery, based from the survey conducted will be one of the highest
anticipated desserts go to in the Philippines. This new approach in serving the countrys
best desserts and the new combination of the hot crispy ice cream sandwich will be one
of the innovations that the creamery will have. In other words, we will focus on

producing products with the countrys recipes; create new ways of serving it. With a bit
of eye candy approach, we will create a dessert restaurant that all people can enjoy.
The ice cream has many flavors to choose from and can also be the countrys
special flavors like mango from guimaras, buko pandan, ube macapuno, strawberries
from baguio, Queso royal and of course avocado from Region II. We are also creating a
chocolate flavor from cacao and will be adding Pili nuts from Bicol. The milk for the ice
cream will be the natural carabao milk.

Figure 2: Product Sample

2. Uses of the Product

Our product is mainly for eating
III.

Manufacturing Process
1. Description of the Process
The process of producing the ice cream is simple. Steps are as follows
1. Start with the ice cream mix that is composed of all the dairy products
and pour it to the machine. Depending on the flavor that we are using,
some of the flavors will be added in the machine to get mixed in while
some get mixed out. 2 bags of ice cream base should be enough to
produce 6 quartz
2. Now we can add the French vanilla extract to bring out the creaminess
of the cream
3. Start the machine and run it for 10 minutes.
4. After that, we can now add the extra ingredients the fruits or nuts and
some flavorings such as caramel or chocolate and mix it in by hand.

2. Alternative Process Considered

a. A coffee can filled with an ice cream base that's placed inside a larger
can filled with ice and rock salt. Close both cans with plastic lids, shake for
25 minutes

Figure 3: Coffe Can Process

b. The Play & Freeze ice cream ball contains a metal tube that you fill with
an ice cream base. Ice and rock salt fill the sides of the ball itself, which
you toss, roll, or otherwise agitate for about 20 minutes.

Figure 4: Ice Cream Baller

c. With an ice cream maker, you just pour the ice cream base into the
already-chilled metal container and then turn the crank every couple of
minutes until a thick ice cream forms.

Figure 5: Ice Cream Maker

d. A plastic Ziploc bag inside a larger bag filled with ice and rock salt
applies the standard equation freezing temperature plus agitation for 5
minutes and wins the prize for the most elegantly simple solution of all.

Figure 6: Ziploc Plastic Bag Process

e. If you have a hand mixer, you can fill a bowl with the ice cream base,
place it in the freezer, and mix on medium speed every 2 hours to break
up any ice crystals that may have formed, to create a chunky ice cream.

Figure 7: Hand Mix Process

f. Another option is to freeze an ice cream base in ice cube trays and then
pop the frozen cubes in a food processor. Pulse for a few seconds, and
you have instant, if slightly rustic, ice cream.

Figure 8: Blending Process

IV.

Production Schedule

Store Hours: 9:00am to 9:00pm

Hours of Operation: 12 hours of operation
21 Employees are needed in daily operation

Legend:
RD = Rest Day
OP = Opening (9 3pm)
MS = Mid Shift (11 5pm)
CL = Closing (3 9pm)
BT (15mins)

Employees

Mon

Tue

Wed

Thu

Fri

Sat

Sun

Store
Manager
Assistant
Manager
Cashier 1

OP-CL

RD

OP-CL

OP-CL

OP-CL

OP-CL

OP-CL

OP-CL

OP-CL

OP-CL

OP-CL

RD

OP-CL

OP-CL

RD

OP

OP

OP

OP

OP

OP

Cashier 2

OP

RD

CL

CL

CL

CL

CL

Grill 1

RD

OP-CL

OP

OP

OP

OP

OP

Grill 2

OP-CL

RD

CL

CL

CL

CL

CL

Mixer 1

OP

OP-CL

CL

CL

CL

CL

CL

Mixer 2

OP-CL

RD

OP

OP

OP

OP

OP

Total

Table 7: Work Schedule

V.

Machinery and Equipment

Description

Function

Quantity

Unit
Cost

Total
Cost

A computerized
network operated
by a main
computer and
linked to several
checkout terminals

17,000

17,000

Used to store and

record data

15,200

15,200

A secure space
where money,
valuables,
records,
and documents
can be stored

7,000

7,000

For
communication
and business
transaction
purposes with
High Speed
Internet

1,899

1,899

Point of Sale System

Computer Set

Vault

Telephone + Internet

For displaying the

frozen goods
product

100,000

100,000

Stores perishable
goods and use for
cooling purposes

30,000

30,000

A domestic ice
cream maker is a
machine used to
make small
quantities of ice
cream for personal
consumption.

200,000

200,000

A deep fryer is an
appliance used
for deep frying.

15,000

15,000

Ice Cream Display Freezer

Freezer

Ice Cream Machine

Deep Frying Equipment

Description

Function

Quantit
y

Unit
Cost

Total
Cost

Exhaust Fan

Sucks hot
air out of the
kitchen to
create
proper
ventilation

620

620

Heavy Duty Burner

Kitchen
appliance
designed for
the purpose
of cooking
food

3,868

3,868

Weighing scale

A measuring 1
instrument
for
determining
the weight or
mass of an
object

249.00

249.00

Range Hood

1
A device
containing a
fan that
hangs above
the stove or
cook top in
the kitchen
used to
remove
smoke,
odors, heat,
and steam
from the air

2410.00

2410.00

Utensils
Description

Function

Quantit

Unit Cost Cost

Colander

Strainer

Frying Pan

Kitchen Knives Set

y
1

A bowlshaped
kitchen
utensil with
holes in it
use for
draining.
1
A filter to
retain larger
pieces while
small pieces
and liquid
pass
through
1
A kitchen
utensil
design to fry,
to sear, and
to saut and
food
1
A kitchen
tools used to
cut different
kinds of
foods

260.00

260

40.00

40.00

250.00

250.00

100.00

100.00

Tong

A kitchen
tool for
handling
food items
on a grill

23

46

Spoon and Fork

Used in food
preparation
to measure,
mix, stir and
toss
ingredients;
primary
utensil used

3
dozen
each

39.00

117.00

Spatula

Bowl

Plate

Pitcher

Ice cream scooper

Furniture and Fixtures

Office Chair

for eating
A hard-held
tool that is
used for
lifting,
flipping or
spreading
substances
A round
vessel that
is open at
the top;
used chiefly
for holding
food or
liquids
A broad,
mainly flat
vessel on
which food
is served
Used to hold
water for
drinking
purposes

35.00

105.00

2
Dozen

96.00

192.00

3
Dozen

144.00

432.00

49.00

147.00

It has sharp
metal edges
that cut
perfectly
round balls
from even
the hardest
ice cream

30.00

60.00

Generally
comfortable
and
adjustable
type of chair
that is

300.00

300.00

Fluorescent Light

Kitchen Cabinet

Supplies
Description
Ballpen

Calculator

Logbook

designed for
use at a
desk in an
office
Lighting,

325.00

975.00

Built-in
furniture
installed in
many
kitchens for
storage of
food,
cooking
equipment,
and often
silverware
and dishes
for table
service

2000.00

2000.00

Function

Quantit
y
3

Unit Cost Cost

5.00

15.00

50.00

100.00

45.00

45.00

Used in
writing
important
details or
documents
Used for
computation

Used for
recording
and
reference
purposes

Stapler

Used to
compile files

29.75

29.75

Staple wire

Used for
stapler

3 boxes

5.75

17.25

Thermal paper

Used to
provide
receipt to
the
customers

32.00

160.00

Bond paper

Used for
documentati
on purposes

1 ream

232.00

232.00

A piece of
textile used
to hold hot
kitchen
equipment
like pots and
pans
Used to dry
hands and

10.00

50.00

10.00

50.00

Sanitary Supplies
Pot Holder

Cleaning towel

for sanitation
purposes

Sponge and Scrub

Used to
scrub plates
and utensils.

12

8.00

96.00

Dishwashing liquid

Used to
clean plates
and other
utensils

25.00

50.00

Mop

Used to
wipe wet
floor

95.00

95.00

Broom

Used to
sweep the
floor

45.00

45.00

Dust pan

Used to
collect dust
and waste

45.00

45.00

Hand Sanitizer

Disinfectant
use to
maintain the
cleanliness
of the hands
before and
after eating
For sanitary
purposes

125.00

125.00

24.00

192.00

Tissue paper

Table 8: Materials

VI.

Plant Location

Our Store location can be located at the Terraprime Condominum which is

located at Sto. Domingo Church Quezon City, just at the front along Quezon Avenue
Road Quezon City
VII.

Plant Size and Layout

Figure 9: Store Layout

VIII.

Raw Materials and Supplies

Today, ice cream is made from a blend of dairy products (cream, condensed milk,
butterfat), sugar, flavorings, and approved additives by the Regulatory Guidelines
Concerning Food Additives in the Republic of the Philippines Department of Health.
Eggs are added for some flavorings, particularly French vanilla. The broad guidelines
allow producers to use ingredients ranging from sweet cream to nonfat dry milk, cane

sugar to corn-syrup solids, fresh eggs to powdered eggs. DOH regulations do stipulate
that each package of ice cream must contain at least 10% butterfat and only carabaos
milk can pass the butter fat content requirement for ice cream naturally, without any add
on.
The additives, which act as emulsifiers and stabilizers, are used to prevent heat
shock and the formation of ice crystals during the production process. The most
common additives are guar gum, extracted from the guar bush, and carrageenan,
derived from sea kelp or Irish moss.
Air is added to ice cream to improve its ability to absorb flavorings and to facilitate
serving. Without air, ice cream becomes heavy and soggy. On the other hand, too much
air results in ice cream that is snowy and dry. Makers of high-quality ice cream
(sometimes known as gourmet ice cream) use fresh whole dairy products, a low
percentage of air (approximately 20%), between 16-20% butterfat, and as few additives
as possible.
IX.

Waste Disposal

In the food industry business, customers health and safety is always the
priority. We will provide satisfaction and convenience that they deserve. Maintenance
and cleanliness in all of the areas of the store is a requirement. Henceforth, KDJ
Creamery encourages all the members of the organization especially we are in the food
industry to strictly comply with the set of standards in cleanliness specifically with the
proper disposal of waste.
First and foremost, we will provide trash bins in locations that are away
from the customers dining area, hence near the comfort rooms and such, inside the
kitchen and the corners on the counter.
Waste disposal is a problem in the food industry, so we came up ways to
reduce the cost and recycle some materials. Food waste can be recycled by two main
pathways:
Composting: A treatment that breaks down biodegradable waste by
naturally occurring micro-organisms with oxygen, in an enclosed vessel or
tunnel or pit
Anaerobic digestion or biogas technology: A treatment that breaks
down biodegradable waste in the absence of oxygen, producing a
renewable energy (biogas) that can be used to generate electricity and
heat.

And also we will schedule or conduct a waste audit because it will allow us to see
a full scale report of how much trash our business creates. We will also buy items made
from recycled content because when you purchase items made from recycled material, you
are supporting the recycling loop.
X.

Utilities

Water

Running water is a must for most businesses. From a health and safety
perspective, it is important to have access to water for first aid and basic
hygiene. Consider where your business can find a water source before you
decide on a business location. If you live near a metropolitan area, you can
hook up to the town's or city's water services. If you live in an isolated or rural
area, you may have to dig a well and connect a water pump to your office. If
you plan to connect to an existing water service, allow enough time to
complete the necessary forms.

Sewage
Some localities group water and sewage into a single service. If this is the
case, your businesses may need to register for this service and pay a monthly
fee. Again, if your business is not part of a metropolitan area, you may have
to install your own septic tank and connect it to your drainage system.
Trash Service
In some localities, it is compulsive to pay and use some type of trash service.
Again, if your business is not part of a metropolitan area, you may have to
contract the services of a private company that works in your area or take
your trash directly to the closest landfill.
Telecommunications
Nowadays most businesses group their telecommunication utilities in one
convenient bill. This includes your telephone, cable TV, voice over Internet
protocol and Internet. If you need two or more of these services, you can save
money by buying them as part of a package. On the other hand, if you only
need one service, such as a telephone line, don't pay for services you do not
need. Local telephone service companies are required by law to offer a
simple telephone service by itself.
Electricity
Unless you are a hardcore road warrior and do all of your business from the
back of your car, you need to contract electricity. Of course, another option is
to generate your own electricity through a small-scale wind farm or solar
panels. This is generally not an economic choice, however, especially for

companies that have just started. Each state has an energy department that
offers advice and tips on how to minimize the cost of electricity and ensure
your appliances are as efficient as possible. You can also find help and advice
at the U.S. Department of Energy Information Administration's official website.
LPG

XI.

This is very essential to our business because all of our products require LPG
for efficient production. This will be available in various dealers in

Direct Labor Requirements

For businesses, the people are considered to be the lifeblood of the

organization. They are the key factors in every business there is. They are very
important for the business to operate effectively and efficiently. KDJ Creamery will need
a full - time employee. In our operation, we need a total number of manpower in our
restaurant, N for opening shift and N for the closing shift. They are the ones who will
perform the functions of following positions:
Store Manager
Assistant Manager
Kitchen Steward
Service Crew
Total

1
1
4
2
8

Management Study
The management aspect implies a clear and precise identification of duties and
responsibilities, flow of authority and manpower level requirement. It will be set up for
efficiency. To achieve these, the management must be able to plan all activities, for the

company to become productive and competitive industry through human resource,

financial capability and new technologies. 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.
I.

Objectives

1. To determine the form of the proposed business

2. To analyze the organization and management aspect of the business
3. To introduce or present the exact capitalization of the business
4. To identify requirements and qualification, duties and responsibilities and salaries
and benefits of the business manpower
5. To illustrate and clearly discuss the flow of authority and the policies that will serve
as guide of the entire business.
II.

Form of Ownership

The type of business is a partnership. It is to be registered with the Securities

and Exchange Commission (SEC) for the contract called articles of co-partnership. By
the contract of partnership, two or more persons bind themselves to contribute money,
property and industry with the intension of dividing the profits among themselves.
KDJ Creamery as partnership will be registered with the different government
agencies as Securities and Exchange Commission (SEC), Department of Trade and
Industry (DTI), Business Permit and Licensing Office of Paranaque (BPLO), Bureau of
Internal Revenue (BIR) and Social Security System (SSS).
The project will have its full blast after it has complied with all the necessary
documents and technical requirements needed to operate and engage in this type of
business. The pre-operating capital for this business will be 1,000,000.00 each partners
total of 6,000,000.00
III.

Capitalization
Partners
Dann Angelo C. Solis
Mary Kriszelle Bautista
Jerome Encarnacion

IV.

Type of Partner
Industrial
Capitalist
Industrial
Capitalist
Industrial
Capitalist

Organizational Chart

Capital
1,000,000.00
500,000.00

Source of Capital
Cash from parents, Personal
savings
Personal savings

500,000.00

Sale of Land

Store
Manage
r
Assistan
t
Manage
r
Kitchen
Stewrd

Kitchen
Steward

Kitchen
Steward

Cashier
1
Kitchen
Steward

Cashier
2

Figure 10: Organizational Chart

V.

Manpower Requirements

The first thing we need to do is to outline the functions that our organization needs to
perform. Then determine the number of people (and their backgrounds) that is
necessary to achieve this aim. This allows us to decide the possible sources of
recruitment and the policies to be followed.
Employees are the ones who actualize our goals whether in finance, marketing
or operations. Without them your vision would remain only a dream.
Position
Store Manager

Job Description
Responsible for the
overall supervision of
all other managers and
subordinates.
Responsible for the
administration of all the
management functions
planning, organizing,
controlling and
directing
Handles the
implementation of the
policies, rules and
regulations throughout

Job Requirements
College graduate of as 4year Management degree
At least 2 years of
managerial experience
and has a higher degree
of academic preparation
With pleasing personality
24-25 years old, male or
female
Highly intelligent
andve4ry good in
decision making
Creative and imaginative
Hardworking and good in

Asst. Store
Manager

the organization.
Monitors the
performance of his
subordinates.
Responsible for the
overall ongoing
production operations
including inventory
control, scheduling,
documentation,
equipment
maintenance
calibration, shipping,
an
Working with the
General Manager to
improve operations,
sales and profitability.
Maximizing profits by
controlling labor costs
and expenses.
Continuously reviewing
and managing team
performance.
Supporting the Store
Manager in identifying
opportunities for
commercial
advantage.
Providing and
exceptional in store
experience for
customers.
Checking off and
signing invoices and
credit notes on a
weekly basis.
Managing staff training
requirements.
Delegate work and
give tasks to

handling people
Good communicative
skills

College graduate of as 4year Management degree

At least 2 years of
managerial experience
and has a higher degree
of academic preparation
With pleasing personality
24-25 years old, male or
female
Highly intelligent
andve4ry good in
decision making
Creative and imaginative
Hardworking and good in
handling people
Good communicative
skills

Cashier
-

Kitchen Steward
-

VI.

individuals to do.
Greet customers
politely at all times
Performs the seven
key steps in every
transactions with the
customers
Ensures good
customer relations by
giving friendly service
to them
Handles money/sales
properly Eliminate loss
of the store by
accurately receiving
payment and giving of
change
Ensures the quality of
products and all the
food standards are met
Responsible for the
cleanliness of all the
kitchen tools and
equipment
Ensures the maximum
level of performance of
the machines and
equipment
Minimizes the wastage
of raw materials in
production
Responsible for the
safety of food and
elimination of
hazardous elements

Compensation and Benefits

1. Salaries and Wages

At least high school

graduate
18-21 years old, male
With working experience
in any fast foodpr
restaurant
Hardworking and with
high level of work
discipline
Fast in accomplishing
task and can do
multitasking

College graduate of 4year course in

Accountancy or any
related course
At least 1 year working
experience related in
handling money
22-30 years old, male or
female
Good communication
skills
Computer literate,
knowledge in accounting
software is advantage

Employees will receive their respective salaries as per contract of employment

every 15th and last day of the month. Cut-off for payroll computation is 10 th and 25th
of the month
2. Overtime Pay
Employees can work beyond their shift or on rest days if work requires it. All
efforts will be made to avoid unnecessary overtime work and to keep work within
reasonable time limits. Employees that will work overtime needs written approval
from the store manager first prior to working overtime. Every employee should file
their overtime slips within the pay-period for compensation and records. No slip no
overtime pay.
3. Cancelled Day-off or Holiday Pay
Every employee shall be provided with a rest period of twenty-four (24) hours
after every six (6) consecutive normal working days. See. Figure # for details
4. 13th Month Pay
The 13th month pay of an employee which shall be equivalent to 1/12 of his basic
salary earned within a calendar year shall be given not later than December 24 of each
year.
5. Paternity and Maternity Leave
Paternity and maternity leave benefits as provided by law shall be given to every
employee entitled thereto, upon complying with all the requirements of the company and
upon proper verification by the Companys duly authorized representatives.
6. SSS/PHIC/HDMF Benefits
Benefits under SSS/PHIC/HDMF law shall be granted in accordance with applicable
laws. Implementation of procedures relative to entitlement of said benefits should be
done in accordance with the regulations to be promulgated by the management.
7. Hospitalization Plan
Regular employees shall be provided with hospitalization plan with a respectable
Health Maintenance Organization under terms and conditions to be solely decided by
the company.
8. Accident Insurance
Regular employees are enrolled by the Company under a reputable Insurance

Organization. Any accident incurred whether work-related or not shall be compensated

by this Insurance firm. This plan shall be on employer-employee participating basis.
9. Retirement Benefits
Retirement pay benefits as provided by law shall be given to all qualified employees
upon their retirement from the company.
10. Bereavement Assistance
If an immediate family member of a regular employee passed away, he shall be
given a financial assistance of P5000.00 upon complying with all the requirements of
the company and verification by its authorized representative.
11. Other Incentives and Awards
Awards and certificates of recognition, such as Crew of the Month, Best in
Attendance, Most Punctual Employee, Model Employee of the Year and the like shall be
given the discretion of management.
VII.

Organizational Policies
Discipline is the primary concern of the organization for the attainment of the
productivity and efficiency that will lead to the organizational and personal growth. All of
the employees as well as the general partners are expected to behave ethically at all
times.
1. Employment
It is the companys policy to select applicants based on the following factors:
- Mental aptitude
- Social skills
- Physical fitness
- Strength and weaknesses
- Experience
As such only applicants who passed the qualifying examinations, series of interviews,
medical examinations and background investigations shall be considered for
employment.

a. Employment Requirements
1. 2 pieces 2x2 pictures

9. Barangay Clearance

2. 2 pieces 1x1 pictures

3. NSO Authenticated Birth Certificate
4. NBI and Police Clearance
5. SSS Number
6. TIN Number
7. Drug test
8. Medical examination

10. Working Permit

11. Health Card

2. Classification of Employees
a. According to Rank
1. Managerial Employee One who is vested with powers or prerogatives to lay
down and execute management policies and/or hire, transfer, suspend, lay
off, recall, discharge, assign or discipline employees.
2. Supervisory Employees One, who, in the interest of the employer,
effectively recommend such managerial actions if the exercise of such
authority is not merely routinely or clerical in nature but requires the use of
independent judgment.
3. Rank-and-file employee all other employees not falling within any of the
above definitions.
b. According to Status
1. Contractual or Seasonal An employee is hired for a specified period of time
under an agreement prior to or at the time of employment.
2. Probationary an employee is hired on a probationary basis for a period not
to exceed six (6) months.
3. An employee is hired on a regular status upon satisfactory completion of the
probationary period and upon satisfaction of the criteria necessary for
appointment as regular status.
The company reserves the right to amend the above classification or create sub
classifications as the circumstances of the business may require.
3. Orientation
All newly hired employees regardless of classification of rank and status must
undergo on orientation and indoctrination as to the Companys vision, mission, policies,
rules and regulations, duties and responsibilities and menu familiarization.

4. Personnel Records

It is the responsibility of the company to update and maintain personnel records.

It should contain the following document and records:
- Resume with 2x2 colored photo
- Test results
- Interview impressions
- Mayors permit and health certificate (to be renewed every calendar year)
- Transcript of records
- TIN,SSS,PHIC,HDMF numbers
- Employment contracts
- Performance Evaluation forms
- Certificate of trainings attended
- Leave and violation records
- Others
If there are changes in an employers personal data such as residence address, civil
status, dependents, etc., a report should be made for updating purposes. Withholding
information and failure to report will result in willful breach of trust wherein continuance
of service will be questioned.
5. Contracts of Employment
All employees shall duly sign, execute and deliver the corresponding Contract of
Employment. All employees shall thereafter be issued a company identification card,
which must be worn at all times during working hours.
6. Work Schedule
It is the policy of the company to provide appropriate work hours without violating
the mandated rest days. As such, the company requires all employees to follow the six
(6) hours working shift, including one-hour break assigned to them.
7. Tune Keeping
KDJ Points of Sales system is the official time indicator. All employees are
required to use the POS system to accurately record times of arrival and departure.
Swipe cards will be issued to the employees on the first day of work. Swipe card
will be used to register the time of arrival, break and departure on the basis for payroll.
Employees should swipe out before taking their meal breaks and swipe in after taking
their meal breaks.
Employees who forget to swipe in or out shall be charged as AWOL for the entire
shift

8. Attendance and Punctuality

Attendance and punctuality are important qualities that the company expects
from its employees. They are the factors that determine an employees efficiency and
reliability. His presence is necessary for the smooth flow of work at the start of the
business hours.
a. Attendance
Every employee shall ask written permission from the Store Manager or
Department Head, before taking the leave of absence.
-

Unscheduled Absences Employees must file an application for absence for at

least one (1) week ahead to Store Manager or Department Head
If employee incurred sickness and cannot report for work, he must call his
supervisor or manager at least two (2) hours before his duty. If no calls were
received on the day of his absence or his call came in late, this will be considered
as AWOL. Upon return to work, he must file an absence slip with medical
certificate attached for signature and approval of Store Manager or Assistant
Manager
Emergency Leave If employees must go on emergency leave, he must fi le an
absence slip immediately. Attached to the absence slip must be documents
justifying his reason for going on emergency leave.

An employee who is absent from work without written approval is subject to

penalties. An employee who is absent without official leave for five consecutive days is
considered to have abandoned his work and therefore subject to outright dismissal from
the company.
Under time is allowed on a case-to-case basis and only if approved by the Store
Manager. Under time hours shall be automatically deducted from the salary of the
employees concerned.
b. Punctuality
It is the policy of the company to discourage tardiness as this affects the morale
of the punctual employees as well as the operations of the business. Tardiness shall
mean coming to work past the required starting time. It also means failure to go back in
the workplace immediately after break periods. Heavy traffic, oversleeping, personal
reasons, etc. do not constitute justification for late arrivals. Only three (3) tardiness are
allowed within one month. In excess of this, an employee is subject to disciplinary
action. Arrival in the workplace two hours after scheduled time will be sufficient ground
to consider an employee as absent for half day. Tardiness shall be chargeable directly
against basic pay.

9. Personnel Movement and Performance Evaluation

It is managements prerogative to assign, transfer, reclassify, promote or demote

its employees accordingly based on merit and performance. Thus, employees are
continuously evaluated as to their performance, work attitude, productivity, honesty and
diligence and may be served as bases for managements decisions on personnel
movement. Performance evaluation shall be done to every employee on his 3 rd, 4th, and
5th month. For regular employees, performance evaluation shall be done twice a year
every May and November of a calendar year.
10. Separation from Service
a. Voluntary Resignation
In case an employee intends to resign, he/she must give a one-month prior
notice to the management and must comply with all the clearance requirements;
otherwise the employee shall forfeit whatever remaining compensation due to him.
b. Termination
In all cases involving a termination of an employees service from the company,
appropriate notice of termination shall be furnished to the employee subject to
clearances of all accountabilities. As a matter of policy, terminated employees are not
qualified for reinstatement.
VIII.

Legal Requirements
1.
-

Municipality of Quezon City

Business Permit
Barangay Business Clearance
Lease Contract
Locational Clearance
Picture of Establishment
Fire Clearance
Sanitary Permit

4. DTI
- Application for Partnership
- Business Name Registration Form

2.
-

BIR
2316 Form
1702 Form
1903 Form
1907 Form

5. SEC
- Articles of Partnership
- Registration Data Sheet

3.
-

SSS
R-5
R-1
R-1A

6.
-

11. Code of Ethics

FDA
Petition to open a food establishment
RA 3720
Checklist for food establishment

1. Hygiene and Sanitation

All employees must observe must observe the highest standard of hygiene and
sanitation. Employees must be well-groomed and continue with their work, wearing
clean and proper attire. For this purpose, the tem well-groomed shall mean proper
haircut, cut fingernails, use deodorant, and clean and regularly washed hands. For this
purpose, the term clean and proper attire shall likewise include newly-washed and
properly-ironed attire, no excessive dirt on clothes and shoes, and proper and complete
company uniform worn properly.
2. Arrival and Departure of Employees
All employees regardless of status and rank, must submit all personal belongings
for inspection upon entering the company premises. Inspection will include a tickler
which shall list all contents of his bag, down to the smallest detail.
All personal belongings are restricted within the locker area while the employees
on-duty. It is strictly prohibited to bring in any personal belongings based on the tickler
as well as body frisking. If found questionable items in his possession, this shall be
reported to the manager on-duty immediately for proper action.
3. Procedure for Notices/Bulletin Boards
Management shall post all notices, announcements and memoranda of general
application on the bulletin board. Ignorance is not an excuse and it is incumbent on
each employee to regularly check the bulletin boards for new notices, announcements
or memoranda. No employee is allowed to post or remove any document on the bulletin
board without the prior permission from the management.
4. Notice of Disciplinary Action
In accordance with the due process requirements of the Labor code, as
amended, all employees found or reported to have committed a violation of the
company rules and regulations shall be given a written notice to explain, and shall be
given the opportunity to explain why no disciplinary action should be imposed against
him. Thereafter, any disciplinary action to be imposed by the management shall again
be indicated in writing and duly furnished to the affected employee.
5. Code of Conduct
Without in any limiting the prerogative of the company to amend, modify, revoke,
or add to the ff. List of offenses, the following acts and mere attempts to commit such
acts, even if unsuccessful, shall warrant the corresponding disciplinary actions.
a. Kinds of Penalties

Employees are subject to penalties according to their violations made during their
employment.
- Written Report of Warning (WR) it is the notice calling all the attention to the
offense and warning the offenses against repetition of such violation in the future.
- Suspension (3D/6D/9D) If a worker has committed offense for the second or third
time, he is subject to suspension. He will be detached from the organization with
the designated period of time without payment.
- Termination (TR) Termination will be given to employees who have committed a
major offense. The employee will be dishonorably separated from the
organization.
Offenses
Tardiness
Absence without leave
Loitering or unauthorized leaving of post
Extending break period
Unauthorized use of company time for
personal pursuit
Insubordinate or disobedience to
superior
Negligence or carelessness
Unauthorized use or misuse of company
property
Willful destruction of company properties
Discourtesy towards consumers,
suppliers, superiors and co-workers
Using profane language or obscene
language to superiors
Stealing or attempting to steal properties
of the company or of the co-workers
Failure to comply with company rules and
standards on security & safety and Health
& Sanitation
Failure to comply with health, security
and safety requirements of the company
Immortality or scandalous acts

WR
1st
1st
1st
1st
1st

3D
2nd
2nd
2nd
2nd
2nd

1st
1st

6D
3rd
3rd
3rd
3rd
3rd

9D
4th
4th
4th
4th
4th

TR
5th
5th
5th
5th
5th

1st

2nd

3rd

2nd
2nd

3rd
3rd

4th
4th

5th
5th

1st

2nd

1st
3rd

2nd
4th

1st

2nd
1st

1st

2nd

3rd

4th

1st

2nd

3rd

4th
1st

Table 9: Penalties
b. Project Schedule Gantt Chart
Activities
Month
Processing of
Legal Requirements
Processing the
Lease of Contract
Purchasing and
installation of
Equipment
Hiring and Training
of
Personnel
Preparing all the
Operation Materials
Business Operation
Proper

November
1
2

December
1
2

January
1
2

Table 10: Gantt chart Schedule

The following are the 47 the considered holidays

February
1
2

Jan 1

New Year's Day

Regular Holiday

Jan 14

Maulid un-Nabi

Common Local holidays

Jan 31

Chinese Lunar New Year's Day

Special Non-working Holiday

Feb 25

People Power Anniversary

Observance

Mar 20

March equinox

Season

Apr 9

The Day of Valor

Regular Holiday

Apr 17

Maundy Thursday

Regular Holiday

Apr 18

Good Friday

Regular Holiday

Apr 19

Holy Saturday

Special Non-working Holiday

Apr 20

Easter Sunday

Observance

May 1

Labor Day

Regular Holiday

May 27

Lailatul Isra Wal Mi Raj

Common Local holidays

Jun 12

Independence Day

Regular Holiday

Jun 21

June Solstice

Season

Jul 29

Eidul-Fitar

Common Local holidays

Aug 21

Ninoy Aquino Day

Special Non-working Holiday

Aug 24

National Heroes Day

Regular Holiday

Aug 25

National Heroes Day holiday

Regular Holiday

Sep 23

September equinox

Season

Oct 6

Id-ul-Adha (Feast of the Sacrifice)

Common Local holidays

Oct 25

Amun Jadid

Muslim, Common Local holidays

Nov 1

All Saints' Day

Special Non-working Holiday

Nov 2

All Souls' Day

Observance

Nov 30

Bonifacio Day

Regular Holiday

Dec 21

December Solstice

Season

Dec 24

Christmas Eve

Special Non-working Holiday

Dec 25

Christmas Day

Regular Holiday

Dec 26

Special Day after Christmas

Special Non-working Holiday

Dec 30

Rizal Day

Regular Holiday

Dec 31

New Year's Eve

Special Non-working Holiday

Work performed on a regular holiday shall be compensated with an additional

compensation equivalent to 100% of his regular salary. Work performed on an
employees rest days or on a special holiday shall be paid an additional compensation
of 30% of his regular salary.
Financial Study

The financial aspect of the project feasibility study quantifies the results of the
marketing, technical, management, taxation and legal phase of the project study and
expresses in peso terms the possible outcome of operating the project.
The major parts of the financial study are:
- Statements of assumptions;
- Possible sources of outside financing, if the capital requirements cannot be met
entirely by the proponents;
- Projected financial statements;
- Details of various amounts contained in the projected financial statements; and
- Analysis of the financial projections
Basically, project studies consist of the skillful coordination of the various information
on all the factors in the form of financial projections. It covers all the factors that are
pertinent to an intended venture having established the existence of a sample market
and the feasibility of the production facilities to supply this market, the investigation
should move on the study of finance cost. What remains is to study the result of the
market and technical studies.
I. Objectives
1. to make a realistic, complete, and conservative estimate of the total cost to put
up a project of its capital requirements,
2. to determine the amount of capital financing available and borrowings needed,
including possible source and terms,
3. to make complete, safe, and realistic projections of operating cost and revenues,
4. to determine whether the project will be able to pay its total debt with a
reasonable margin of safety,
5. to determine the necessary financial arrangements to insure that the project will
have the cash it needs when required,
6. To determine the companys earnings performance and the soundness and
liquidity of its financial positions.

II.

Total Project Cost

Pre Operating Expense

Expenses

Yearly

Monthly

Daily

Wages and Salaries

1,009,008.00

84,084.00

2,802.80

Electricity
Telephone
Water
LPG
Promotional
Expenses
Utensils
Machineries and
Equipment

54,000.00
22,788.00
14,520.00
12,240.00

4,500.00
1,899.00
1,210.00
1,020.00

150.00
63.30
40.33
34.00

9,050.00

754.17

25.14

1,749.00

145.75

4.86

393,246.00

32,770.50

1,092.35

Furniture and
Fixtures
Rental
Sanitary
Office
Repairs and
Maintenance

3,275.00
360,000.00
703.00
596.00

272.92

9.10

30,000.00
58.58
49.67

1,000.00
1.95
1.66

5,000.00

416.67

13.89

Taxes and Licenses

19,110.00

1,592.50

53.08

Total

1,905,285.00

158,773.75

5,292.46

Table 11: Pre-operating Cost

III.

Initial Investment
Starting initial investment would investment would be 2,000,000.00

IV.

Financial Statements
a. Major Assumptions:

Sales increase by 5% every year.

Depreciation method used is a straight line method.
Withholding tax on salaries is payable on April 15 of the subsequent year.
Income Tax for the current year is payable on April 15 of the subsequent year.
Salaries increase by 5% every year.
Utilities expense is paid as it comes due.
Administrative and Selling expense increase 5% per year.
b. Projected Income Statements

Table 12: Projected Income Statement

c. Balance Sheet

Table 13: Balance Sheet

V.

Financial Analysis
1. Rati
os

SOCIO-ECONOMIC STUDY
The socio-economic impact of this study will clearly state its relevance to the
external aspect of the business.
A. Contribution to the Philippine Economy
Every business establishment will be of great help for the growth and
development of the Philippine economy. These will only be possible if every firm will be
responsible enough to perform their duties and obligations to their
customers, community and of course to the government. DaCs Creamery will
definitely contribute additional earnings to our government by means of
paying right taxes. Through this, the government can able to perform its
functions well including continuous support and assistance to the business industry,
providing projects for the community such as building infrastructures, public schools

and hospitals, strengthening arm forces for the security and protection of the
countrymen and other indispensable projects that will benefit the people.
B. Employment Generation
The business will provide job opportunities to many individuals most
especially to those people who have great passion in food preparation. Every
society wants all its qualified members to be gainfully employed. When individuals are
employed they are able to raise their children support them through school, provide
them with decent homes, acquire medical services whenever needed and contribute to
government income through the payment of income taxes. DaCs Creamery
will help to lessen rate of unemployment and number of poor people. The eradication
of poverty will help to solve social problems like crimes, juvenile delinquency
and malnutrition.
C. Social Desirability
The firm will apply the principle of Corporate Social Responsibility
(CSR).The business will observe proper waste disposal in order to maintain cleanliness
and orderliness. This will also help to lessen pollution that causes different
diseases and health problems to many Filipinos. The business proponents will allocate
enough budgets to sustain the execution of waste management in its operation.