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## LIST OF ANNEXES WITH CHAPTER DEETS ## CHAPTER 3.0 PROJECT BACKGROUND This Chapter presents the details of your project's proponents, and the choices of name, type of business organization, and project location. These topics are essential before going to the major aspects of your Study. ### Det...

## LIST OF ANNEXES WITH CHAPTER DEETS ## CHAPTER 3.0 PROJECT BACKGROUND This Chapter presents the details of your project's proponents, and the choices of name, type of business organization, and project location. These topics are essential before going to the major aspects of your Study. ### Details: - **3.1 Project Proponents** - Nationality - Name - Address - % Ownership - **For a Partnership,** indicate whether the proponent is a **Limited or a General Partner**. - **3.2 Proposed Name of the Business:** - state the reasons for your choice of name - **3.3 Type of Business Organization** - state whether your proposed project is a **Single Proprietorship,** a **Limited or General Partnership,** a **Corporation,** a **Subsidiary/Branch/others.** - Indicate the reasons for your choice. Please refer to Annex 3.1 for a list of the most common possibilities of this topic. - **3.4 Location of Head Office and Factory:** ## Annex 3.1: TYPES OF BUSINESS ORGANIZATION ### A. Single Proprietorships - A business owned and managed by a single person. - The owner and the business in most instances are the same. - All assets of the business are the proprietor's ownership. #### ADVANTAGES: - Simplicity of organization - The owner's freedom to make all decisions. - The owner's enjoyment to all profits made #### DISADVANTAGES: - Minimum legal restrictions - Ease of discontinuance - Tax advantages - The owner's possible lack of ability to manage (experience) - Limited opportunities on the part of the employees - The owner's possible difficulty in raising capital - Limited life of the business - The proprietor's unlimited liability ### B. Partnership - Defined as a grouping of two or more persons to carry-on as co-owners of a business for profit. - The business is based on a **Partnership Agreement**, which is known as the "**Articles of Co-Partnership**". - In the absence of this agreement, all profits or losses are usually divided equally among all partners unless there are special arrangements made and previously agreed. #### ADVANTAGES: - Ease of organization - The combined talents, judgements and skills of several or all of the partners. - More capital available for the firm from any or all of the partners. - Maximization of personal interests of the firm. - Definite legal status of the company - Tax advantages #### DISADVANTAGES: - Unlimited liability not only of one partner, but also for those contracted by the other partners. - Limited life of the firm - Possibility of divided authority - Possible danger of disagreement of major decisions and issues ### C. Corporations - An artificial legal person, created by an approval of its founders an "**Article of Incorporation**". - As specified by law, a Corporation can exercise only its rights as governed by the laws of the state and powers as expressed by its"**By-laws**". - Ownership of a Corporation is often by transferable stock certificates. - The Stockholders elect the members of the Board of Directors of the Corporation. In turn, the Board of Directors normally appoint the officers who will manage the business. #### ADVANTAGES: - Limited liability to stockholders - Perpetual life (50 years, in most instances and renewable) - Ease of transferring ownerships - Ease of expansion - Applicability to all sizes of firms #### DISADVANTAGES: - Bound by government regulations - May be expensive to organize ## CHAPTER 4.0 MANAGEMENT AND PERSONNEL FEASIBILITY ### 4.1 Personnel (Administrative) - State here, your proposed number of administrative personnel. - Present your proposed Organizational Chart in detail. Please refer to Annex 4.1 for your guidance on this item. - State your administrative personnel's job requirements, specifications, responsibilities and functions. Annex 4.2 defines each of these management terminologies for your convenience. - State your administrative personnel's proposed salary rates and benefits. Annex 4.3 presents a selected list of specific books and topics from the Labor Code of the Philippines on this item. - Name any professional firms you may hire on a retainer's basis relative to your project's administrative operations. State also these firms' responsibilities, retainer's fees, and your reasons for choosing them. - Present any proforma contracts with the above firms, if possible. - Show availability and source of administrative personnel to be hired. ### 4.2 Management Proposals - State and define your **Management Style** To run your administrative workforce. - Annex 4.4 presents a guide - State the functions of each administrative department/section of your project with emphasis on their individual policies. - State Trainings, Seminars, and Staff Development Programs you may wish to conduct to your administrative personnel (if any), and your corresponding budget for such. - Enumerate the facilities, equipment and machineries you will need for your project's **Administrative Department**, stating also their description, sources, quantity, and costs. ### 4.3 System and Forms Design - State your project's administrative flow of operations and standard operating procedures, clearly showing internal and external relationships to other parts of your entire organization. State also an explanation of your proposed system. - Present your project's **Flow Chart** illustrating your proposed system of administrative operations. - Present some sample designs of **Administrative Forms** you will use in the operations of your project. If possible, state also their description, use(s), channel/s, who and how will they be accomplished. Refer to Annex 4.5 for a short list of these forms. ### D. Committee Type Organization - This type of organization has no single person in-charge of the business operations but its members as a whole formulate its decisions. - Usually found in specific department or sections of an organization. These are the so-called **Executive Committees, Finance Committees**, etc. #### ADVANTAGES: - Fosters Cooperation - Balance views on business or project decisions #### DISADVANTAGES: - You have to deal with a group, rather with only a single person. - Hard to fix individual responsibilities. - If the organization is too large, there may be a tendency of coming up with too slow or an unwieldy group. This results to time consuming activities on some projects. - Hard to produce clear cut decisions. ## Annex 4.1: Organizational Charts ### A. Line Type Organization - **ADVANTAGES:** - Simple - Highly Efficient - Versatile - Fast Decision-Making - **DISADVANTAGES:** - Autocratic - Tendency to be too centralized - Tendency to overload responsibilities to top management - Impractical for big corporations ## Annex 4.2: Job Terminologies in Personnel Management ### A. Job Analysis - The process of studying and collecting information related to the operations and responsibilities of a specific job. - The immediate products of these are **job descriptions and job specifications**. ### B. Job Description - These are organized, factual statements of the duties and responsibilities of a specific job. - They tell us what is to be done, how it is done, and why it is done. They define the appropriate and authorized contents of a job. ### C. Job Specifications - These are statements of the minimum acceptable human qualities necessary to perform a job properly. - They set a standard for personnel and designate the qualities required for their acceptable performance. ### D. Job Classifications - A grouping of jobs on some specified basis such as the kind of work or pay, etc. - It can refer to a grouping by any selected characteristic but probably is used most often in connection with pay and job evaluation. ## Annex 4.3: A Selected List of Books and Rules from the Labor Code of the Philippines on Personnel Benefits ### Book III: Conditions of Employment - Rule 1: Hours of work - Rule 11: Night shift differentials - Rule III: Weekly rest periods - Rule IV: Holidays with pay - Rule V: Service incentive leave - Rule VI: Service charges - Rule VII: Wages - Rule VIII: Payment of wages ### Book IV: Health, Safety and Welfare Benefits - Rule 1: Medical and dental services - Rule 11: Occupational health and safety ### Book V: Labor Relations - Rule IX: Registration of collective bargaining agreements - Rule XI: Voluntary arbitration - Rule XII: Labor management cooperation - Rule XIII: Picketing, strikes and lockouts - Rule XIV: Termination of employment - Rule XV: General provisions ### Book VI: Post Employment - Rule I: Termination of employment and retirement ## Annex 4.4: Theories of Management ### A. Theory X - Most managerial principles are derived from this theory. - The assumptions by which this theory applies are: 1. The average human being has an inherent dislike of work and will avoid it if he can. 2. Because of this human characteristic of dislike of work, most people must be coerced, controlled, directed or threatened with punishment to get them to put forth adequate efforts toward the achievement of organizational objectives. 3. The average human being prefers to be directed, wish to avoid responsibility, has relatively little ambitions, and wants security above all. ### B. Theory Y - The development of human behavior has dared the soundness of Theory X, which led to an opposite view. - The assumptions of this theory are: 1. The expenditure of physical and mental effort in work is as natural as play or rest. 2. External control and the threat of punishment are not the only means of bringing about efforts toward organizational objectives. 3. Commitment of objectives is a (result of the) reward/s associated with their achievement. 4. The average human being learns, under proper conditions not only to accept but also to seek responsibilities. 5. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population. 6. Under conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized. ### C. Theory Z - A third major theory that has cropped lately in management circles is the Japanese Theory of Management, or Theory Z. - As proposed by William Ouchi, Theory Z adapts effective Japanese management styles whose distinguishing factors include the promotion of closer, cooperative, and trusting relationships between all working groups in the company. - Its central thought is the creation of an industrial team and a stable, cohesive work environment where employees feel affiliated and independent while sticking to the proper qualities and control of the needs of the organization. - The typical features of this theory are: 1. Lifetime employment 2. Nonspecialized careers 3. Individual responsibilities 4. Concern for the total person 5. Less formal control systems 6. Consensus decision-making 7. Slower rates of promotion ## Annex 4.5: A List of Some Administrative Forms and Records - Samples obtained from an organization of a related business nature could be used as guides: 1. **Employee Requisition Forms**, for your company's hiring purposes. 2. **Application Forms**, which contain your applicants' personal circumstances when evaluating their employment worthiness. 3. **Pending Application File**, for your company's future references / use / hirings. 4. **Attendance or Time Records** 5. **Job Analysis Records**, which contain your employees' job specifications and job qualifications. 6. **Job Evaluation and Classification Records**, which contain your employees' job classifications, and salaries and wages rates. 7. **Merit Rating Records**, usually for your company's top management's direct evaluation of work performances of subordinates, they usually contain recommendations for such worthiness or unworthiness of your employees. 8. **Employment Tests**, file of employees' examination results as part of your company's screening process for hiring/promotions. 9. **Physical and Medical Exam Reports**, contains a file of your employees' physical conditions and medical history with the company. 10. **Putol amputa** 11. **Termination and Retirement Records**, contains a file of your company's past employees. 12. **Company Legal Documents Records File** 13. **Personnel Information Sheets**, Individually, your source of knowledge of each of your company's employees. These may be grouped in a folder that include 2, 4, 5-10. ## CHAPTER 5.0 MARKETING FEASIBILITY - This Chapter will pinpoint your project's general to specific market feasibility. It will present your market and an analysis of the past, present and future demand and supply situations of your particular product/s. If the conditions found are feasible, then a check of the marketing practices of similar businesses is studied as a guide for you to design your project's marketing strategies. ### 5.1 Market Description - State here, the general description of your market: its size and composition, geographical location(s), population, age group, income level, job categories, family size, etc. ### 5.2 Demand - State here, the demand situation of your product/s. - Present your product/s" demand for the last five or ten years indicating your method or sources of information. Annex 5.1 is a short lecture on demand measurements. - Project these figures for the next five or ten years. Annex 5.2 and 5.3 present a short lecture on projection methods and which to choose from among the methods computed. - Present an in-depth analysis and conclusion from your demand projection figures. - Present a Sensitivity Analysis of the projected demand values of your project. ### 5.3 Supply - Write here, the supply situation of your market. - Present the supply situation of your intended product/s during these last five or ten years indicating your sources of information. Annex 5.4 will give you an idea on how to estimate supply figures. - Project these figures for the next five or ten years. You can again refer to Annex 5.2 and 5.3 for your projection computations. - Come up with an in-depth analysis and conclusion from your projected supply figures. - Present a Sensitivity Analysis of the projected supply values of your project. ### 5.4 Demand-Supply Analysis - From the Demand and Supply figures obtained in 5.2 and 5.3, present the same past and projected figures taking note of their discrepancies thus: - From the above computed figures, show that Demand is greater than Supply throughout or at most of the time frame involved. This will be one of your main reasons for your easy penetration of the market. - Present a Sensitivity Analysis of your projected Demand-Supply ### 5.5 General Marketing Practices - State national and local government marketing policies that could affect and assist you in the marketing of your product/s. - Present, if possible, the market share of your future competitors including their geographical and demographical limits. You can also present local and foreign market distributions of your product/s, if applicable. - Present then in detail, your future competitors' market and marketing strategies like: - Incentives and Benefits - Market Research and Development - Sales Force - Pricing Policies - Terms and Conditions of Sales - Channels of Distribution - Transportation and Delivery Strategies - Branding and Packaging Strategies - Advertisement and Promotions Strategies - Storage and Warehousing Strategies - Physical Distribution Strategies - State also your marketing sales force and budget allocations. - Lastly, present your proposed Product-Mix and Marketing-Mix Strategies like: - Target Market - Sales Force - Marketing Research - Development (R&D) Program - Product-Mix Strategies - Market Timing and Scheduling Strategies - Pricing Strategies - Terms and Conditions of Sales Strategies - Channels of Distribution Strategies - Transportation and Delivery Strategies - Branding and Packaging Strategies - Advertisement and Promotions Strategies - Storage and Warehousing Strategies - Physical Distribution Strategies ### 5.6 Proposed Marketing Program - Present national and local government marketing policies and assistance packages and programs that will benefit your project. - For your Market Conceptualization, state your proposed **Marketing Philosophies and Tasks.** Annex 5.5 will prove a helpful guide in this instance. ### 5.7 Projected Sales - Present a table showing your sales forecasts for the next five or ten years. Please refer to the table: - Come with a Sensitivity Analysis of your Sales projections. ### 5.8 System and Forms Design - State your project's marketing flow of operations and standard operating procedures, clearly showing internal and external relationships to other parts of your entire organization. State also an explanation of your proposed system. - Present your project's **Flow Chart** illustrating your proposed system of marketing operations. - Present some sample designs of **Marketing Forms** you will use in the operations of your project. If possible, state also their description, use(s), channel/s, who and how will they be accomplished. Please refer to Annex 5.7 for a short list of these Forms. ## Annex 5.1: Demand Measurements - This Annex serves as your review about the theoretical and analytical methods of measuring demand. - **A. Theoretical Demand Measurements** - Philip Kotler defined Market Demand as: - "Market demand for a product is the total volume that would be bought by a defined customer group, in a defined geographical area, in a defined period, in a defined marketing environment, under a defined marketing program" - The eight (8) elements mentioned in this definition represent the factors to be considered in the determination of market demand. - So far, the easiest and fastest way is to research for "published statistics" by specialized government and private agencies. - Some of our government agencies where you could get some market data are: - a. The National Statistics Office (NSO) - b. The National Economic and Development Authority (NEDA) - c. The Department of Trade and Industry (DTI) - d. The Central Bank of the Philippines ("BSP" for Bangko Sentral ng Pilipinas) - The first three have their own provincial and regional offices throughout - To some market analysts, they use a computed "correction factor" that they multiply to the obtained figures. To them, this somehow lessens the inaccuracies. - 1. Another method of Market Demand Measurement is in terms of "per capita consumption". The product of this and your target market) population will give you your theoretical consumption of the target market of your product/s. - 2. A second one is to ask for an estimate of the Total Demand from marketing experts based on a "percentage share" of your specific products to the total market. By multiplying this percentage share to your specific product/s' market, you can arrive at your theoretical demand of your product/s. - 3. A third method is to commission professional market analysts to come up with theoretical market demand equations based on computations using various market data. This particular method involves making intricate computer programs and is very expensive, not to mention the researches to be conducted in getting the necessary inputs to the project. This method if only done by very big business establishments. - All of the above methods are of course, very hard to make as a neophyte researcher. In which case, the Analytical Demand Measurements presented next are usually used in project feasibility studies. - **B. Analytical Demand Measurements** - **1. The Chain Method.** - If you want to estimate the market demand for dark beer, your estimated demand would be: - "The total population * the population of your target market x your personal estimate of your target market's per capita income x your target market's average percentage of calculated income which is spent on food x the average of this amount which is spent on alcoholic beverages x the average percentage of this amount that is spent on beers x the average expected percentage of this amount that is spent on dark beers". - **2. The Market Build-up Method** - This means identifying all the (putol ulit hayst) - **3. The Index-of-Buying-Power Method** - In estimating geographical potentials, you may assume that your target market potential is directly related to a single factor say, population. - Therefore, if your particular target market represents 5.2% of the total consuming population, you may then assume that your target market would consume 5.2% of the total products sold in the market. - Single factors are accepted for small company market estimates, but not for big companies, who usually come up with their own computer-aided formulas for their products' market demand that usually involve multi-factor equations. - Consider this example: - Bi=0.7Y1+0.5Y2 +0.3Y3 +0.2Y4 - where: - Bi percentage of the total buying power in area i; - Y1 percentage of total consumers' personal income in area i; - Y2 percentage of total retail sales in area i, - Y3 percentage of total population in area i - Y4 percentage of your total target market's age group using your product in arca i; and - 0.7, 0.5, 0.3 and 0.2 are the specific weights corresponding to their respective factors: Y1, Y2, Y3 and Y4 respectively. ## Annex 5.2: Projection Methods - **Five Computational Methods** - A. **Arithmetic Methods** - 1. The Arithmetic Straight Line Method - 2. The Arithmetic Geometric Curve Method - B. **Statistical Methods** - a. Statistical Straight Line Method - b. Statistical Semi-Long Method - c. Statistical Parabolic Projection Method - ***See the book for this section, to many tables and figures kasi.*** ## Annex 5.3: Standard Deviation Computations as a Method for Determining Your Project's Projection Figure - **SD= -√Σ(Υ – Υc)2 / n** - ***See the book for this section, to many tables and figures kasi.*** ## Annex 5.4: Supply Measurements - The existing and past supply of your intended products in the market could be obtained by each of the following: - **A. Local Production Capacities** - Your future competitors' rated capacities could be summed up together to estimate the total supply of your products in the market. - Sometimes, it would also be good to know their production and marketing programs which you could consider as part of your market analysis in your study. - **B. Importations** - Importations by other companies could provide your other source of supply for your intended product/s. - Since importations usually come from undetermined company sources, and therefore unknown relative strengths of suppliers, it may help if you will consider their legal duties. - Knowing your approximated delivered (landed) costs, quality standards, etc. could be helpful for your analysis of the imported supply of your future competitors. - **C. Product Substitutes** - Those seemingly cheaper and usually inferior product substitutes could not be taken for granted. - Lately, many consumers resolve to these items because of certain economic factors. - **NOTE:** Your project's future market share is computed from your supply figures as follows: - **Your proposed production capacity / The total supply available for the same year including your proposed rated capacity x 100% per year** ## Annex 5.5: Marketing Philosophies and Tasks - Various marketing demand situations from which you could come up with your project's proposed marketing philosophy and tasks program: - **A. Conversational Marketing**, if your potential market does not like your products. - you must conceive an effective marketing strategy that will produce a potential demand based from this negative situation. - **B. Stimulational Marketing**, when you have so many products but there is no demand. - your target market is indifferent or is simply not interested in your product/s. A good strategy here is to create (stimulate) people into having a need for your product/s. - **C. Developmental Marketing**, if your target market is looking for a product that does not yet exist - you may want to develop a new product that would satisfy this demand. - **D. Remarketing**, when the demand for your product declines. - you should make remedies to stop the (downward) trend by devising a more revitalized marketing program that will create a "new life" for your product's demand. - **E. Synchromarketing**, if your market suffers from a very irregular pattern. - To offset this, why not devise a marketing schedule that will "synchronize" your customers' orders? - Synchromarketing will help you offset your company's over-utilization and under-utilization of production capacities. - **F. Maintenance Marketing**, when your market is already at full demand. - You should carry out a more vigorous marketing program that will keep up (maintain) the market demand and sales of your product/s. - **G. Demarketing**, when the demand for your product/s will far exceed your supply capacities. - One way to solve this is to try to reduce your market demand on some of your products and focus your strategies on some of your other products. - **H. Countermarketing**, if you have products that are undesirable for your consumers. - Examples of this are the so-called "vice products" ## Annex 5.6: Market Planning and Strategies Considerations - This Annex contains a checklist of things to consider in coming up with your Product-Mix and Marketing-Mix Programs and Strategies. - In considering your: - **A. Target market**, - Answer the questions: WHAT needs are to be served and WHOSE needs are to be served. - Consider the Geographical Limits of your market area: national, regional, provincial/city, municipal; climate; population density. - Consider also, the Demographical Limits of your market area: age; sex; family size; family status; income; occupation; education; religion; race or culture; social level. - Lastly, consider the Psychographic Limits of your market area: lifestyles; personalities; benefits sought; user status; usage rates; Loyalty, awareness; market sensitivity. - **B. Sales Force,** - Consider your Budget Limits. - **C. Marketing Research and Development (R&D) Program,** - Consider your R&D Budget Limits. - Update yourself on: Business Analysis: sales estimates, marketing costs and profits, and market tests - Sources of Information: trade and economic magazines, trade and consumer organizations, surveys, economic reviews, business institutions, and market research and advertising firms. - Product Development: brand naming (labeling) - Research Activities: advertising research, business, economics and corporate research, corporate responsibility research, product research, sales and market research. - **D. Product-Mix Strategies**, - Consider your budget limits. - Know your: - Product-Mix Width: "How many different product line will be sold by the company?" - Product-Mix Depth: "What will be the average number of items to be offered by your company per product line?" - Product-Mix Consistency: "What will be the relationship of your company's different product lines to your over-all marketing program?" - **E. Market Timing and Scheduling Strategies,** - Design Marketing Strategies for your Product/s': - Introduction Stage - Growth Stage - Maturity Stage - Decline Stage - **F. Pricing Strategies,** - Consider the following: - legal pricing laws - consumers' behavior - clientele dictates - competitors' policiesmarket factors served/unserved by your manufacturers - types of products handled - seasonality - price limits - target pricing and alternative pricings - mark-ups - availability of product's - **G. Terms and Conditions of Sales Strategies,** - Consider: - Discounts and Allowances: quantity discounts, trade discounts, cash discounts, seasonal discounts, forward dating (out-of-season selling). - Promotional Allowances: free samples, free deliveries, etc. - **H. Channels of Distribution Strategies**, - Consider your budget limits. - Select your Channel's Level: - two-level (manufacturer-consumers); - three-level (manufacturer - retailer - consumers); - four-level (manufacturer - wholesaler retailer - consumers); - five-level (manufacturer-wholesaler-jobber-retailer-consumers). - Select also your Flow Types: physical flow, payments flow, promotions flow, title (ownership) flow, and information flow. - Consider also horizontal and/or vertical growth possibilities. - **I. Transportation and Delivery Strategies,** - Consider your budget limits. - Determine what type of transportation delivery method/s you will use: rail, water, highway, air, pipeline, etc. - **J. Branding and Packaging Strategies,** - Consider your budget limits - What kind of Branding Strategies will you use: - individual brand names for each of your products - common (family) names for all of your products - different names for a family of your products - your company name mixed with individual or family names for all of your products - "Brand Extension" Schemes. (eg. New Improved!, etc) - What will be your packaging strategies? - What will be your labeling strategies? - **K. Advertising and Promotions Strategies,** - Consider your budget limits. - Would you consider personal selling? - Will you give suppliers' promotional assistances? - Determine your publicity strategies: will you use/join: - space advertising - the mail - the internet - sales presentations - trading stamps or coupons, - catalogues - trade exhibits - endorsements - free samples, gifts, etc. - market demonstrations - contests - posters, show cards, streamers, etc. - films - sales conferences - print and/or visual advertisement EVENTS - What Mode will you use? - Television - Radio - print media: newspapers, magazines, etc. - outdoor print advertising: posters, billboards, etc. - through the internet, e-commerce - **L. Storage and Warehousing Strategies,** - Consider your budget limits - Consider your capacities' (inventories') limitations. - Consider also your project's: - materials handling - expansion possibilities - physical distribution - **M. Physical Distribution Strategies,** - Consider your budget limits. - Try: - The economics of a single plant, single market - The economics of a single plant, multiple markets - The economics of multiple plants, multiple markets ## Annex 5.7: A List of Some Marketing Forms and Records From among the following list, select which are applicable to your project and design them to suit your project's needs. Samples obtained from an organization of a related business nature could be used as guides. 1. **Sales Invoice** - used to invoice merchandise sold to customers either in cash or charge basis. 2. **Delivery Receipts** - issued along with the Sales Invoices and used as posting references on your stock cards. 3. **Receiving Receipts** - are used to record stock purchases from suppliers. 4. **Official Receipts** - are given to customers who make direct or full payment of their purchased items. 5. **Promissory Receipts** - are given to field collectors when the purchased merchandise is not fully paid, or paid with postdated checks. 6. **Check Vouchers** - used in the preparation of payments to suppliers and vouching of expenses. 7. **Petty Cash Vouchers** - used to record petty (minimal) disbursements. 8. **Subsidiary Customers' Ledger** - used to control your receivables and to determine the flow of payments by customers and their respective account balances. 9. **Promissory Notes** - which are given to customers who buy on installation. 10. **Credit Memos** - issued to customers who purchase on discounts or those who are given rebates. ## CHAPTER 6.0 PRODUCTION OR TECHNICAL FEASIBILITY ### 6.1 Product/s (or Service/s) - Present here, a detailed description of your intended product/s: its dimensions, compositions (mechanical, chemical and/or physical properties), quality specifications, etc. For agribusiness projects, their common and scientific names, specie (breed), color, size, weight, etc. For service projects, the specific service you intend to do. - Present some drawings, pictures, oг photocopies of your intended products. - State any product segmentation proposals, if any. - State any modifications: differences or improvements of your intended product/s over similar or related products from your competitors, if any. ### 6.2 Production Process - For manufacturing projects, Annex 6.1 will be a helpful guide. - Present your operations' **Flow Diagram** showing the details of each section or activity of your production process including: - lead time - processing time - materials and/or energy balances (for Chemical related projects. Please refer to Annex 6.2 for a short review of this topic) - production or activity flow - care and management program (for Agribusiness projects) - Present your quality and monitoring standards and schemes (monitoring control systems), if any. Annex 6.3 presents a short review on **Production Planning and Control Systems** that you can use as your guide. - State any plans for automation and/or computerization of your project at any period of your study that will affect your project's budgeting, if any. ### 6.3 Alternative Processes - State here, alternative production processes that you will use as contingencies in case of sub-normal conditions of your operations. - State the advantages and disadvantages of each of these alternatives. - State your preparatory plans for implementation of these alternatives in case of application. ### 6.4 Materials Handling Design - Present your project's **Materials Handling Proposals** if possible, per department, section or subdivision. A list of questions that will guide you in the design of your proposal is given in Annex 6.4. - Prove that your proposed proposal is better than other possible - State any costs that will be incurred as a result of your proposal ### 6.5 Technological Assistances - Enumerate a list of offices and specialists whom you will coordinate with, or hire on a retainer's basis who will help you with external techno-managerial assistances during your operations period. A short list of government offices providing such assistances is given in Annex 6.5. You can present these in the following table: - Include pro-forma technical assistance contracts, if any. ### 6.6 Project Site - Present a list of fundamental data and requirements for your project's site determination. A list of factors for consideration in determining your project site is given in Annex 6.6. - Describe your project's proposed location in detail. - State alternative sites for your project indicating the advantages and disadvantages of each location. Your project's choice location should prove to be the best alternative in this case. - State also some possible obstacles that you may encounter in your choice of project location, and how you are going to solve each. - For multi-plant locations, prove the necessity of each project/plant site. - State the current cost of real estate in the vicinity of your project site. - State allocations for future expansion of your project. - Present current site conditions and preparations. You may use the suggested format presented as follows: ### 6.7 Project Layout - Determine data and alternatives in making your choices for coming up with your project's layout Annex 6.7 presents a checklist of questions that you may consider in determining your best choice. - From among your suggested layouts, decide and select your best proposal and state your reasons for choosing it. - In case of franchises or subsidiaries where project layouts are normally dictated by Head Offices, present your detailed project layout as directed and suited to your site's area dimensions. - Show your choice layout's detailed drawings drawn to scale. - State provisions for any underground facilities and non-operational parts layouts (canteens, display room, etc.) of your project. - Present the detailed costs of lay-outing your project. ### 6.8 Plant Size and Production Schedule - For your **Plant Size Capacity Proposal**: - Describe the factors that will affect your plant's production capacity. Annex 6.8 lists some of these topics. - State all possible alternatives including minimum, normal and maximum limits to your proposed plant capacity. Present advantages and disadvantages of each. - From the above list, select the most favorable choice for your plant's capacity. State your reason/s for choosing it. - If possible, present your project's capacities by department or sections for each semi-finished products and of your entire operations. - Present your projected annual plant capacities for the next five or ten years. You may use the suggested format below: - For your **Production Schedule Proposal:** - Present your reasons for coming up with the figures in the above table