Feasibility Study for Manufacturing of Laptop, Study Guides, Projects, Research of Engineering

Download Feasibility Study for Manufacturing of Laptop and more Study Guides, Projects, Research Engineering in PDF only on Docsity! MANUFACTURE OF LAPTOP COMPUTERS PROJECT SUMMARY MANUFACTURE OF LAPTOP COMPUTERS NAME OF ENTERPRISE The name of our company will be ACBS Incorporated. The name ACBS will be the brand name of the laptop in which our company will manufacture. LOCATION There are factors to consider in building our site because of its waste, like for example in disposing electronic device specially computer, which is not easy to dispose it. So we decided to build our site in General Trias, Cavite. As of now, some part of the south is becoming an industrial plant. The said location is now a place for technological industry. Our sales and marketing office will be located at Quezon City beside Gilmore station of LRT2. This location is also near at the IT center wherein growing demand for PC technology in the Philippines is competitive. Employees working at this office provide world-class sales and support at the OEM, developer and end user levels usually information technologist. Transportation is also possible since customers can take LRT2. DESCRIPTIVE DEFINITION OF THE PROJECT A. Related National Program With the evolution of our company, we will need many skilled workers which can help our government on providing job opportunities. Through this, it will lessen unemployment rate here in the Philippines. MANUFACTURE OF LAPTOP COMPUTERS bubble memory lap-top computer with die cast magnesium case and folding electroluminescent graphics display screen. This is the least specifications that they have so they upgraded it and make newer versions of portable computers. Laptop computers have been the key to the success of the learning experience. In result, the demand for laptop becomes high. Therefore, we collect ten items that are subject for project feasibility studies. Surprisingly, laptop has been selected as our feasibility studies. By analyzing the data, we found out that laptop is one of the highest demands in the market. And it helps the people to make their lives easier depending on how they have had used it. Since there is no manufacturing of laptop here in the Philippines, these people have agreed upon to build up a company that will manufacture the product, we all know that the chips of the laptop are manufactured here but it is exported outside the country and the chips are assembled to make it a part of a laptop and the parts are combined together and assembled to become laptop, and bringing back here in the Philippines just to sell it here. Therefore, we set new standards for these laptops that would be accepted by the people and at the same time, provide a research and development in computer industry. Thus, this project came into being. B. Project Timetable Status The project is subdivided into different sections namely calendar of activities and product architecture which is under the category of project planning, then other sections are feasibility study, production of resources, plant site, filing of legal papers (e.g. building permit), construction of plan, purchasing and installation of equipments, hiring of personnel, purchase of raw materials and planning of market study. The project was estimated to be completed by this year. The start of the operation of the company is expected on the year 2008. MANUFACTURE OF LAPTOP COMPUTERS C. Nature of the Industry This company will manufacture laptop. Based on the demand-supply situation, the product continues to be active on global market. Since the trend of technology has been innovate from desktop to laptop and changing of lifestyle of Filipino people who seek for their satisfaction. The competitions are expected to be rough. The only way to win the competition is to prove affordable price of laptop with good quality. This company will prove its excellence to rise over the competitive market providing laptop through the technical expertise governing the company. D. Mode of Financing The partnership will finance 42,101,024.53 pesos and the other 20 million pesos will be loan from the bank. E. Investment Costs Our company has a project cost of 62,101,024.53 pesos which will be cover all the expenses such as land, utilities, buildings, equipment, fees, labor cost and raw materials. MAJOR ASSUMPTIONS AND SUMMARY OF FINDINGS AND CONCLUSION A. Market Feasibility Some of the factors that could affect the market are due to change of lifestyle of Filipino people. As of now laptop is necessity for every executives and students. Laptop can be use anywhere because it is a portable computer that can be use in your lap. Majority of the workaholic people preferred laptop than MANUFACTURE OF LAPTOP COMPUTERS desktop because they can do their plans, homework, and presentation and even research anywhere. B. Technical Feasibility The process of manufacturing each part of the laptop will be done by different sectors of the department and some of the hardware will get from different hardware manufacturers like Intel which is the number one leading manufacturer of microprocessor or ATI, the manufacturer of video cards for display. The General Manager will be the one responsible for all the operation and the sale of the product. The frontline managers will the one responsible to interact for the customers. C. Financial Feasibility Great amount of cash flow will be executed in the part of the stockholder. If includes capital for land, utilities, buildings, equipment, fees, labor cost and raw materials. The expenses of our company will go through purchasing spare parts of laptop such as parts of motherboard, hard disks, parts of battery and charger etc. The other expenses on the part of business will be payroll, electric bills and maintenance while the rest of the income will be turned into company’s profit. Overall expenses in our company are expected to be recovered for the next few years. D. Socio-Economic Feasibility The inflation and deflation value of the Philippine currency will surely affect the price of our laptop because some spare parts are paying internationally for imports. The government will received taxes from our business that will be use in the construction of infrastructure programs. MANUFACTURE OF LAPTOP COMPUTERS PRODUCT DESCRIPTION The product of our company “ACBS INC” will be labeled ACBS COMPUTER. Our laptop is use for mobility, flexibility and affordability compared to desktop. Our portable computers are design for high speed processing of data. At 3cm thick and in a classy casing that weighs only 1.57kg; this sleek and. stylish notebook PC is a welcome addition to your personal style. Our laptop computers come loaded with the latest in mobile computing technology. This includes 12” widescreen display and 6 cell battery that ensures three hours on a single charge, you’re sure to get your job done on time. Our product has 256mb memory, 40GB hard disk drive for high storage capacity and DVD/CD-RW combo drives for entertainment so that you can watch DVD movies with 256MB video card. DEMAND Nowadays, there is a high rate of technological advancement happening on the computer industry. There is always production that faces the continuous demand of computers from where increasing needs incorporates with the demand for new features. As for computers, the transition from desktops to laptops is unmistakably observable. In relation to this, mobility and effectiveness are already considered a necessity to a variety of applications, especially for engineering students in need of being equipped with an electronic notebook. From which programs like CAD, Auto Cad, I Explorer, C++ Prog, and Excel are readily accessible anywhere and whenever needed. MANUFACTURE OF LAPTOP COMPUTERS Since laptop sales are not available in the National Statistics Office. In our business overview, we have made the engineering and technology students as target for marketing, thus, from 15% of every engineering and technology students in the Philippines, laptops sales can be determined. We used it as a reference data since laptops are commonly used in these courses. The 15% ratio was used due to the ratio considering 40 students in a class which is 6 students among a class have their own laptop. The table below is the data from Commission on Higher Education regarding the number of enrollees. Enrollees of Engineering and Technology Through data of CHED in the number of enrollee in engineering and technology from 1999 to 2005, we have projected the sales in 2006 through 2012 by using the function of regression. The succeeding table shown on the next page is the sales forecast based from the 15% of enrollees of engineering and technology. This 15% will be considered as our market share or forecast sales. Year # of Enrollees 15% of Enrollees 1999 140,614 29,042 2000 259,314 32,838 2001 269,175 36,633 2002 277,409 40,429 2003 294,840 44,224 2004 312,667 48,020 2005 332,660 51,816 MANUFACTURE OF LAPTOP COMPUTERS At year 2008-2012 we are targeting a market share of 5%, and we are planning to produce the following: All values in quantity are in thousands: Year Enrollee of Engineering &Technology (15%) Market Share Expected sales 2008 63,202 5% 3,161 2009 66,998 5% 3,350 2010 70,794 5% 3,539 2011 74,589 5% 3,730 2012 78,385 5% 3,919 The expected sales are computed by considering of having a market share of 5%. It is computed by multiplying the enrollee of engineering and technology (15%) by 5%. As for the historical demands, before projecting 2008 onwards, there is an annual increase in the number of enrollees which we can say also an increase in sales. It is a proof, statistically, that laptops are neither in its peak market nor dropping from it. As self evident truth is concerned, there is still no substitute for laptop computers. MANUFACTURE OF LAPTOP COMPUTERS LINEAR MODEL Year Enrollee Sales (15%) Model(str8) 1999 140,614 21,092 29042 2000 259,314 38,897 32838 2001 269175 40,376 36633 2002 277409 41,611 40429 2003 294840 44,226 44224 2004 312,667 46,900 48020 2005 332,660 49,899 51816 2006 55611 2007 59407 2008 63202 2009 66998 2010 70794 2011 74589 2012 78385 Linear SUMMARY OUTPUT Regression Statistics Multiple R 0.93127845 R Square 0.86727954 Adjusted R Square 0.80091931 Standard Error 4168.24832 Observations 7 ANOVA df SS MS F Significance F Regression 2 454138574 227069287 13.06926693 0.01761472 Residual 4 69497176.3 17374294.1 Total 6 523635750 Coefficients Standard Error t Stat P-value Intercept -3.123E+09 1822811737 - 1.71336473 0.161801965 X Variable 1 3116269.23 1820992.05 1.71130304 0.162193054 X Variable 2 -777.34107 454.793177 - 1.70921885 0.162589423 MANUFACTURE OF LAPTOP COMPUTERS Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept - 8.184E+09 1937795381 - 8184078070 1937795381 X Variable 1 - 1939615.2 8172153.71 - 1939615.24 8172153.705 X Variable 2 - 2040.0494 485.36722 - 2040.04936 485.3672198 Quantity Sales Forecast Linear Model - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year Q u a n ti ty Historical Linear MANUFACTURE OF LAPTOP COMPUTERS QUADRATIC MODEL Year Enrollee Sales (15%) Year^2 Model(quad) 1999 140,614 21,092 3996001 25155.3786 2000 259,314 38,897 4000000 32837.6679 2001 269175 40,376 4004001 38965.275 2002 277409 41,611 4008004 43538.2 2003 294840 44,226 4012009 46556.4429 2004 312,667 46,900 4016016 48020.0036 2005 332,660 49,899 4020025 47928.8821 2006 4024036 46283.0786 2007 4028049 43082.5929 2008 4032064 38327.425 2009 4036081 32017.575 2010 4040100 24153.0429 2011 4044121 14733.8286 2012 4048144 3759.93214 Quadratic SUMMARY OUTPUT Regression Statistics Multiple R 0.877694 R Square 0.770346 Adjusted R Square 0.724415 Standard Error 4904.181 Observations 7 ANOVA df SS MS Regression 1 403380806 4.03E+08 Residual 5 120254944 24050989 Total 6 523635750 Coefficients Standard Error t Stat P-value Intercept -7558330 1855460.6 -4.07356 0.00960033 X Variable 1 3795.584 926.80305 4.095351 0.00939746 MANUFACTURE OF LAPTOP COMPUTERS Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept -2975.58 -317.99044 -2975.58 -317.99 X Variable 1 43.22173 392.816605 43.22173 392.8166 Quantity Sales Forecast Exponential Model - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year Q u a n ti ty Historical Exponential As shown on the graph of sales forecast, the demand for laptop is expected to increase due to fast changing technology and for the convenience of people. Manufacturers of laptop has a dream of a finely tuned supply chain, with finished goods landing softly on distributor and retailer loading docks at exactly the right time in precisely the right quantity. That can't be done, of course, without accurate demand forecasting -- which still tends to be based on intuition and last MANUFACTURE OF LAPTOP COMPUTERS year's sales numbers. It is competition and increasing efficiency on the supply side that have reduced the price of laptops and thus made laptop purchases attractive to more and more students, not the reverse. This is the market at work to make yesterday's luxuries available to the masses. FORECAST MODEL USED Based on the three methods of the projections presented previously in the study of historical sales of laptop (15% of enrollee), our company decided to use the linear model. The data are as follows: METHODS OF PROJECTION R SQUARED LINEAR MODEL 0.87 QUADRATIC MODEL 0.77 EXPONENTIAL MODEL 0.67 The linear model is used because the highest r2 has the best fit to minimum error and also laptops are seen nowadays to be productive in the next few years. Thus the table above signifies a linear relation, with an R square of 0.87 nearest to 1 that is increasing in sales therefore accountable to the demand of laptops. MANUFACTURE OF LAPTOP COMPUTERS PRICE STUDY Selling prices of all similar and substitute products: PRODUCT NAME SELLING PRICE OF LAPTOP VCSi laptop P59,988.00 MEGABOOK P59,900.00 BENQ P45,900.00 HP Compaq P73,850.00 ACER P59,990.00 IBM think pad P71,450.00 Fujitsu LIFEBOOK T series P120,000.00 NEC P69,990.00 DELL P70,000.00 Sony Clie P49,000.00 Factors affecting fluctuations of prices over time: a) The prices will go down due to competition. b) Prices of raw materials and production cost. c) Fast changing technology. Every couple of months, new hardware is release in the market with different specifications and hardware features. d) Exchange Rate e) Population Demand varies inversely with prices. If price decreases, demand increases but when price tend to increase, demand will decrease. Laptops are needed nowadays, especially for engineers, businessmen, programmers, etc. So if the price of the laptop goes down, then of course, the demand for laptop will go up. Here in the Philippines, we will become the first Filipino company that will manufacture laptop in its cheapest price. As consumers notice our relatively low MANUFACTURE OF LAPTOP COMPUTERS TECHNICAL STUDY MANUFACTURE OF LAPTOP COMPUTERS THE PRODUCT The Product of ACBS is laptop computers equipped with an Operating System like Microsoft Windows XP Service Pack 2 and programs such as AutoCAD, Fluidsim, C++, and Microsoft Office. From which specializes on engineering student’s applications. In relation to the product’s physical, Electrician, and chemical properties it is intended to provide laptop technology that shall compromise the needs for basic programs that will mine the most valuable asset of all time, information. MANUFACTURING PROCESS Our company ASBC Inc. line of production will only focuses on motherboards, and battery with power supply. Because mother board of the center of control in the computer. It is the part where the billions of bits of data travel through the bus. It is also the main board of a computer, usually containing the circuitry for the central processing unit, keyboard, and monitor and often having slots for accepting additional circuitry. In short, it controls everything so that we can have control in our product. The other component like video card, memory, DVD ROM, heat sink, liquid crystal display, microprocessor, keyboard and mouse will be getting from other hardware manufacturers. MANUFACTURE OF LAPTOP COMPUTERS MOTHERBOARD The manufacturing of mother boards starts with the PCB production. The conductive copper traces are sandwiches between insulating substrate layers. PCB production begins with etching where the traces are carved into the first layer of copper to coat the top and bottom of the board. After its first layer is etched, the boards are chemically cleaned and rinsed, a process that's repeated throughout the manufacturing process. Boards then go to a lamination stage where they get an extra layer of substrate and copper on each side. Then they're cured, trimmed, and have their edges beveled. Drilling follows, which is essential for not only connecting some surface-mounted components, but also for linking various layers of the board. The holes are needed to mount the board in an enclosure. Throughout the process, boards are subjected to numerous automated and manual inspections. After the boards are drilled, the holes are coated with a thin layer of copper. That's soon thickened by an additional copper plating process before the boards go off to have traces grafted to their new layers. Finally, the boards move onto a solder-masking stage. Holes are plugged and the boards are dyed the desired color. They then head off to final finishing before being subjected to a last visual inspection and electrical test. After the PCB was done, the process moves to PCBA manufacturing. Here, the motherboards begin to resemble a finished product. Boards are assembled in racks and fed through a surface-mount technology (SMT) machine that populates them with components. Surface-mounted components are stored on massive reels that are fed into automated machines. Those machines are capable of mounting approximately seven components per second. Mounting BGA, and other chips is a little slower; the machines populate boards with those chips at a measly two chips per second. Once they're populated by the SMT machines, boards proceed to a reflow oven. From there, it's on to a visual inspection. Once this automated assembly MANUFACTURE OF LAPTOP COMPUTERS As light strikes the first filter, it is polarized. The molecules in each layer then guide the light they receive to the next layer. As the light passes through the liquid crystal layers, the molecules also change the light's plane of vibration to match their own angle. When the light reaches the far side of the liquid crystal substance, it vibrates at the same angle as the final layer of molecules. If the final layer is matched up with the second polarized glass filter, then the light will pass through. MANUFACTURE OF LAPTOP COMPUTERS PROCESS DIAGRAM start Materials and equipment availability Production of mother board Production of Laptop case and battery case PCB production Ethcing Chemically cleaned and rinse Production of battery charger Lamination Drill Solder-masking Dyed the desired color Visual inspection and electrical test Components mounting Reflow Oven Soldering Cooled A A Assembly Packaging Design desired dimension, color and strength Wire and chords production Installation of plug and female connector Quality Control A Injection Molding Colorants Installation of Fuel Cell A Heated Forced by reciprocating screw or ram Cooling INTEL TOSHIBA SEAGATE IBM ATI KINGSTON MICROPROCESSOR DVD-RW HARD DISK DRIVE KEYBOARD AND POINTING DEVICE VIDEO CARD MEMORY LCD DISPLAY END B MANUFACTURE OF LAPTOP COMPUTERS Take two pieces of polarized glass Rubbing of special polymer on the side of the glass Add a coating of nematic liquid crystals to one of the filters Add the second piece of glass with the polarizing film to the first piece Each successive layer of TN molecules will gradually twist until the uppermost layer is at a 90-degree angle to the bottom B PLANT SIZE AND PRODUCTION SCHEDULE Our manufacturing company will start its operation in the first quarter of 2008 and we are expecting the company to start with an active production in the Philippines. The management is planning to have six working days and eight hours of work from 8am-5pm (12nn-1pm lunch break). These working days are only applicable to the entire employee except for the security guards who will have seven days a week and 24 hours a day with random shifting among them.  The plant size covers an area wherein it can accommodate the production of laptops of 12 per day. In order for the ACBS to achieve its goal, the following are considered:  The schedule of operating will be from 8am to 5pm. MANUFACTURE OF LAPTOP COMPUTERS PLANT LAYOUT: Scale 1:1000 RAW MATERIALS STORAGE FINISHED PRODUCT STORAGE PCB PRODUCTION / ETCHING ASSEMBLY AREA MOLDING ROOM LCD PRODUCTION COOLING AREA WASHROOM COUNTER COMFORT ROOM REFLOW OVEN / COMPONENT MOUNTING CANTEEN QUALITY CONTROL Up DELIVERY AREA 12800mm . 8450mm. 12920mm. 8630mm. 4315mm. 7400mm. 14300mm. 8500mm. 7000mm. 7300mm. 7000mm. 8000mm. 9500mm. 2700mm. 6960mm.3725mm. INFORMATION AREA F DRILLING MACHINE 8500 mm 7000 mm `` ``` CONVEYOR CONVEYOR CONVEYOR FIRST FLOOR MANUFACTURE OF LAPTOP COMPUTERS Down GENERAL MANAGER’S OFFICE CONFERENCE ROOM MARKETING DEPARTMENT PRODUCTION DEPARTMENT WASHROOM COUNTER 21350 mm. 10600 mm. 9700 mm. 8350 mm. 11750 mm. 10900mm. 10000mm. 9000mm. 8350mm. DESIGN ROOM HUMAN RESOURCES DEPARTMENT TREASURY & ACCOUNTING DEPARTMENT 11000mm.11000mm. 30000mm. 8000mm SECOND FLOOR Total Floor Area = [1500x2] square meters MANUFACTURE OF LAPTOP COMPUTERS BUILDING AND FACILITIES Item Price Quantity Cost Land Php 7000/sq m 1500 sq m Php 10,500,000.00 Building Php 7000/sq m 3000 sq m Php 21,000,000.00 Office Chair Php 1 750.00 36 pieces Php 63,000.00 Computer Php 18 000.00 15 units Php 270,000.00 Printer Php 5 000.00 3 units Php 15,000.00 Telephone Php 1 300.00 2 units Php 2,600.00 Office table Php 1 500.00 8 units Php 12,000.00 Air conditioner Php 13 495.00 4 units Php 53,980.00 Fax Machine Php 5 000.00 1 unit Php 5,000.00 Filing cabinet Php 2 000.00 1 pc Php 2,000.00 TOTAL Php 31,923,580.00 RAW MATERIALS AND SUPPLIES The materials needed in manufacturing ASBC Laptops are available. The major parts of a laptop computer are mother board, processor, hard disks, video cards, RAM, LCD, Power Supply, Speakers, CD-ROM drives, Sound cards, and Battery. Other parts are subject to minor parts and sometimes they are just called as accessories. LIST OF RAW MATERIALS ITEM and BRAND NAME & SPECIFICATIONS PRICE QUANTITY CALCULATIONS COST Processor Intel Celeron D 310, 256KB L2 Cache, 533MHz FSB, 2.13 GHz 59 976/box (30 pcs) 1pc/unit (59,976/30)*1 Php 1,999.20 MANUFACTURE OF LAPTOP COMPUTERS Resistor, 15K 18/pack (100 pcs) 3 (18/100)*3 Php 0.54 Resistor, 33R 18/pack (100 pcs) 1 (18/100)*1 Php 0.18 Resistor, 39K 18/pack (100 pcs) 3 (18/100)*3 Php 0.54 Resistor, 330R 18/pack (100 pcs) 2 (18/100)*2 Php 0.36 Resistor, 680R 18/pack (100 pcs) 1 (18/100)*1 Php 0.18 Resistor, 2K2 18/pack (100 pcs) 10 (18/100)*10 Php 1.80 Resistor, 510R 18/pack (100 pcs) 1 (18/100)*1 Php 0.18 Resistor, 10K 18/pack (100 pcs) 1 (18/100)*1 Php 0.18 Resistor, 6K8 18/pack (100 pcs) 1 (18/100)*1 Php 0.18 Resistor, 1K2 18/pack (100 pcs) 1 (18/100)*1 Php 0.18 Resistor, 1R 18/pack (100 pcs) 1 (18/100)*1 Php 0.18 Switch, ASF42GL 1 040/box (100 pcs) 1 (1 040/100)*1 Php 10.40 Transistor, FMMT222A 320/box (100 pcs) 1 (320/100)*1 Php 3.20 LED, LTST- C150KRKT RED 45/box (50 pcs) 2 (45/50)*2 Php 1.80 Diode, SS14 200/box (100 pcs) 1 (200/100)*1 Php 2.00 MANUFACTURE OF LAPTOP COMPUTERS Capacitor, T3528 33u 80/box (100 pcs) 4 (80/100)*4 Php 3.20 Capacitor, T6032 10UF 80/box (100 pcs) 7 (80/100)*7 Php 5.60 Regulator, UA723CD 1 920/box (100 pcs) 2 (1 920/100)*2 Php 38.40 Heat sink 1 920/box (30 pcs) 1 (1 920/30)*1 Php 64.00 Fan 12V, 7 blades 2 040/box (30 pcs) 1 (2 040/30)*1 Php 68.00 Copper Clad 6 400/box (100 pcs) 1 (6 400/100)*1 Php 64.00 15-pins Female plug for video card 45/pack (2 pcs) 1 (45/2)*1 Php 22.50 Serial Port 9P Male plug 28/pack (2 pcs) 1 (28/2)*1 Php 14.00 25P Female parallel port 54/pack (2 pcs) 1 (54/2)*1 Php 27.00 TOTAL Php 424.48 LIST OF PARTS OF MOUSE BCESAC3 2 400/box (100 pcs) 1 (2 400/100)*1 Php 24.00 CS4S10FCP 2 000/box (100 pcs) 1 (2 000/100)*1 Php 20.00 Photodiode 718.443/box (100 pcs) 1 (718.443/100)*1 Php 7.18443 USB Plug Male 1 200/box (100 pcs) 1 (1 200/100)*1 Php 12.00 MANUFACTURE OF LAPTOP COMPUTERS USB Plug Female 1 200/box (100 pcs) 4 (1 200/100)*4 Php 48.00 Pushbuttons 120/box (30 pcs) 2 (120/30)*2 Php 8.00 Scroll 1 000/box (50 pcs) 1 (1 000/50)*1 Php 20.00 TOTAL Php 139.18443 LIST OF PARTS OF LCD Plastic Molded Case 2 000/box (50 pcs) 1 (2 000/50)*1 Php 40.00 Polarized Glass 2318.3696/box (10 pcs) 4 (2 318.3696/10)*4 Php 927.34784 Nematic liquid crystals 77 408/box (100 pcs) 2 (77 408/100)*2 Php 1 548.16 Polarizing Film 795.3672/box (100 pcs) 2 (795.3672/100)*2 Php 15.907344 TOTAL Php 1,531.42 LIST OF PARTS OF LAPTOP CASE Polyvinyl Chloride (PVC) resin P89.75/kg 3 (89.75/2.2)*3 Php 122.386 Resin pellet 254.24/kg 3 (254.24/2.2)*3 Php 346.69 Colorant 19220/box (20 pcs of 100ml) 0.5 (19220/20)*0.5 Php 480.50 Power Buttons 15567.91/box (3000 pcs) 6 (15567/3000)*6 Php 31.134 TOTAL Php 980.71 MANUFACTURE OF LAPTOP COMPUTERS UTILITIES Direct Utilities Rate Monthly Annually Electricity Php8.8/kWh Php 58, 080 Php 696, 960 Water Php18.73/cu.m Php 5, 619 Php 67,428 Telephone Php 695/unit Php 6,950 Php 83400 TOTAL Php 847,788 The plant site of ACBS Company is accessible to its need of electricity, water and fuel for its manufacturing and transporting the finished products. The company will acquire the service of MERALCO for the electrical supply, MWSS for water supply and it will also acquire generator in case of loss of power supply. Fuel is needed for delivery trucks and generators. The plant can consume about 220 kWhr/day considering the rate of Php 18.73 per kWhr, the company can have the electricity cost of Php 58, 080/month. We are considering here the normal operation of the company. The cost covers the power needed for lighting, operation of the machines such as chip mounting and other equipments that serves as the needs for production and other indirect utilities. The water supply is important in manufacturing process. It is needed for washing of some components and also used in hygiene purposes. The cost of water supply is about Php 5, 619 considering the rate 18.73 cu. m of water. MANUFACTURE OF LAPTOP COMPUTERS The fuel for delivery trucks will cost Php 15,000.00, as a mode of transporting the products. WASTE DISPOSAL Wastewater that conveniently drains out of our toilets, baths and kitchen do not truly disappear. Untreated wastewater eventually winds up into rivers, streams and groundwater and pollutes them. While the average Filipino households are very much aware of the importance of water for drinking, cleaning, etc., many have yet to be educated of the negative impacts of untreated wastewater. The waste that we consider in the manufacturing of laptops are scraps from cutting of materials considered already as reject, sawdust particles from cutting of metals, wire coatings and amount of wastewater. Our company, considering its manufacturing that can finish 12 units of laptops a day expects kilos of solid waste compose of plastics and metal parts. Our company will implement programs so that we can comply on the campaign on keeping our environment clean and habitual world. The following programs are: Minimize the waste is the optimum goal, such that to minimize waste and lost. Considering the recycling process, to be performed by the company within its plant site, however is unfavorable due to its cost and maintenance. Thus MANUFACTURE OF LAPTOP COMPUTERS disposing waste through the junkyard is our main goal so that it can be recycled, such as the metal parts. Effluent from wastewater is treated before releasing it outside the plant. But the company will hire some business that is in line with treating the water. It in order for us not to build a water treatment that will cause more money. We will pay the amount of charge for the treatment of the water. PRODUCTION COST Summary Raw materials Php 20 852.60 Direct labor Php 7,938,000 Direct utilities Php 847,788 Other direct expenses Php 600,000 Indirect Labor Php 3,099,600 Administrative Php 2,136, 000.00 LABOR REQUIREMENTS Direct Labor Position Quantity Rate/Day Monthly Annually Packager 10 Php 350 Php 91,000 Php 1,092,000 Quality Controller 5 Php 350 Php 52,500 Php 630,000 Skilled workers 20 Php 420 Php 252,000 Php 3,024,000 Machine operators 10 Php 350 Php 91,000 Php 1,092,000 TOTAL Php 5,838,000 MANUFACTURE OF LAPTOP COMPUTERS - INCOME STATEMENT ACCOUNTS - PRICE 30,299.50 P/UNIT DIRECT LABOR 1,705.02 P/UNIT DIRECT UTILITIES 223.24 P/UNIT OTHER DIRECT EXPENSES 175.23 P/UNIT DIRECT COST EXCL RAW MAT'L 2,103.49 P/UNIT Processor 1,999.20 P/UNIT Hard Disk 2,118.40 P/UNIT Video Card 2,550.40 P/UNIT Memory 2,639.20 P/UNIT Keycap IBM Super Slim Keycaps 199.75 P/UNIT Speakers 60.00 P/UNIT DVD-ROM/RW, CD-ROM/RW 2,230.40 P/UNIT Sound Card 1,158.40 P/UNIT Touch pad 1,548.16 P/UNIT Bluetooth 680.00 P/UNIT Infra Red 598.40 P/UNIT Screws Philips screw 3.5mm2 6.44 P/UNIT Integrated Circuit Buffer 74ACT02 8.00 P/UNIT Buffer, 74ACT14SC 8.80 P/UNIT Capacitor, 100nF 39.00 P/UNIT Capacitor, 100pF 39.00 P/UNIT Resistor, 3K3 0.18 P/UNIT MANUFACTURE OF LAPTOP COMPUTERS Resistor, 4K7 0.54 P/UNIT Resistor, 10R 0.36 P/UNIT Resistor, 15K 0.54 P/UNIT Resistor, 33R 0.18 P/UNIT Resistor, 39K 0.54 P/UNIT Resistor, 330R 0.36 P/UNIT Resistor, 680R 0.18 P/UNIT Resistor, 2K2 1.80 P/UNIT Resistor, 510R 0.18 P/UNIT Resistor, 10K 0.18 P/UNIT Resistor,6K8 0.18 P/UNIT Resistor, 1K2 0.18 P/UNIT Resistor, 1R 0.18 P/UNIT Switch, ASF42GL 10.40 P/UNIT Transistor, FMMT222A 3.20 P/UNIT LED, LTST-C150KRKT RED 1.80 P/UNIT Diode, SS14 2.00 P/UNIT Capacitor, T3528 33u 3.20 P/UNIT Capacitor, T6032 10UF 5.60 P/UNIT Regulator, UA723CD 38.40 P/UNIT Heat sink 64.00 P/UNIT Fan 12V, 7 blades 68.00 P/UNIT Copper Clad 64.00 P/UNIT 15-pins Female plug for video card 22.50 P/UNIT Serial Port 9P Male plug 14.00 P/UNIT 25P Female parallel port 27.00 P/UNIT Fuel Cell 328.80 P/UNIT MANUFACTURE OF LAPTOP COMPUTERS Battery Charger Case 67.64 P/UNIT Battery Case 50.73 P/UNIT BCESAC3 24.00 P/UNIT CS4S10FCP 20.00 P/UNIT Photodiode 7.19 P/UNIT USB Plug Female 48.00 P/UNIT Pushbuttons 8.00 P/UNIT Scroll 20.00 P/UNIT USB Plug Male 12.00 P/UNIT Plastic Molded Case 40.00 P/UNIT Polarized Glass 927.35 P/UNIT Nematic liquid crystals 548.16 P/UNIT Polarizing Film 15.91 P/UNIT Wires 18-AWG 15.00 P/UNIT LM25/6-ADJ 355.59 P/UNIT Capacitor, 100F 16V 8.50 P/UNIT L1 68uH @ 5A 19.35 P/UNIT Schottky Diode @ 5A 0.18 P/UNIT Diode, 1N914 2.00 P/UNIT Capacitor, 680F 16V 11.00 P/UNIT Resistor, 200R 0.18 P/UNIT Resistor, 0.05R ½ W 0.18 P/UNIT Capacitor, 0.1F 13.00 P/UNIT Resistor, 1K 0.36 P/UNIT Resistor, 332K 0.18 P/UNIT LMC6081 355.59 P/UNIT Resistor, 30.1K 0.18 P/UNIT MANUFACTURE OF LAPTOP COMPUTERS Drilling Machine 209,850.00 P Rubbing Machine 2,740,200.00 P PCB cleaners 2,028,355.00 P Conveyor 255,000.00 P Delivery Truck 1,200,000.00 P Office Chair 63,000.00 P Computer 270,000.00 P Printer 15,000.00 P Telephone 2,600.00 P Office table 12,000.00 P Air conditioner 53,980.00 P Fax Machine 5,000.00 P Filing cabinet 2,000.00 P Life of Building(s) 25.00 YEARS Life of Molding machine 5.00 YEARS Life of Reflow oven 5.00 YEARS Life of Chip shooter 5.00 YEARS Life of Drilling Machine 5.00 YEARS Life of Rubbing Machine 5.00 YEARS Life of PCB cleaners 5.00 YEARS Life of Conveyor 5.00 YEARS Life of Delivery Truck 5.00 YEARS Life of Office Chair 5.00 YEARS Life of Computer 5.00 YEARS Life ofPrinter 5.00 YEARS Life ofTelephone 5.00 YEARS Life of Office table 5.00 YEARS MANUFACTURE OF LAPTOP COMPUTERS Life of Air conditioner 5.00 YEARS Life of Fax Machine 5.00 YEARS Life of Filing cabinet 5.00 YEARS DEPRECIATION SCHEDULE: YEAR0 YEAR1 YEAR2 YEAR3 YEAR4 YEAR5 BUILDING 840,000.00 840,000.00 840,000.00 840,000.00 840,000.00 Molding machine 68,600.00 68,600.00 68,600.00 68,600.00 68,600.00 Reflow oven 940,800.00 940,800.00 940,800.00 940,800.00 940,800.00 Chip shooter 1,163,260.00 1,163,260.00 1,163,260.00 1,163,260.00 1,163,260.00 Drilling Machine 41,970.00 41,970.00 41,970.00 41,970.00 41,970.00 Rubbing Machine 548,040.00 548,040.00 548,040.00 548,040.00 548,040.00 PCB cleaners 405,671.00 405,671.00 405,671.00 405,671.00 405,671.00 Conveyor 51,000.00 51,000.00 51,000.00 51,000.00 51,000.00 Delivery Truck 240,000.00 240,000.00 240,000.00 240,000.00 240,000.00 Office Chair 12,600.00 12,600.00 12,600.00 12,600.00 12,600.00 Computer 54,000.00 54,000.00 54,000.00 54,000.00 54,000.00 Printer 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 Telephone 520.00 520.00 520.00 520.00 520.00 Office table 2,400.00 2,400.00 2,400.00 2,400.00 2,400.00 Air conditioner 10,796.00 10,796.00 10,796.00 10,796.00 10,796.00 Fax Machine 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 Filing cabinet 400.00 400.00 400.00 400.00 400.00 TOTAL DEPRECIATION 4,384,057.00 4,384,057.00 4,384,057.00 4,384,057.00 4,384,057.00 OUTSTANDING BLDG&EQPT 38,296,705.00 33,912,648.00 29,528,591.00 25,144,534.00 20,760,477.00 16,376,420.00 LONG-TERM LOANS 20,000,000.00 P MANUFACTURE OF LAPTOP COMPUTERS REPAYMENT PERIOD 12.00 YEARS INTEREST RATE 12.00 % LOAN REPAYMENT SCHEDULE: YEAR0 YEAR1 YEAR2 YEAR3 YEAR4 YEAR5 PRINCIPAL REPAYMENT 1,666,666.67 1,666,666.67 1,666,666.67 1,666,666.67 1,666,666.67 INTEREST ON BALANCE OF LOAN 2,400,000.00 2,200,000.00 2,000,000.00 1,800,000.00 1,600,000.00 OUTSTANDING AT YEAR-END 20,000,000.00 18,333,333.33 16,666,666.67 15,000,000.00 13,333,333.33 11,666,666.67 PROJECT COST: LAND 10,500,000.00 BUILDING 21,000,000.00 EQUIPMENT 17,296,705.00 WORKING CAPITAL 13,304,319.53 TOTAL PROJECT COST 62,101,024.53 - CAPITALIZATION - YEAR0 YEAR1 YEAR2 YEAR3 YEAR4 YEAR5 LONG TERM LOANS 20,000,000.00 ADDITIONS TO OWNERS' EQUITY (P) OUTSTANDING OWNERS' EQUITY 42,101,024.53 42,101,024.53 42,101,024.53 42,101,024.53 42,101,024.53 42,101,024.53 - PROJECTED INCOME STATEMENT - FOR THE YEAR ENDING DECEMBER 31 YEAR1 YEAR2 YEAR3 YEAR4 YEAR5 GROSS REVENUE 95,776,719.50 101,503,325.00 107,229,930.50 113,017,135.00 118,743,740.50 DIRECT OPERATING EXPENSES 72,564,209.97 76,902,911.55 81,241,613.13 85,626,226.89 89,964,928.47 SELLING EXPENSES 4,741,500.00 5,025,000.00 5,308,500.00 5,595,000.00 5,878,500.00 INDIRECT OPERATING EXPENSES 5,445,200.00 5,445,200.00 5,445,200.00 5,445,200.00 5,445,200.00 MANUFACTURE OF LAPTOP COMPUTERS FINANCIAL STUDY ACBS Inc. Laptop Manufacturing is capable of competing to other manufacturing companies of Laptop computers. In order for this project to be feasible, certain assumptions are needed to consider. Some manufacturing companies, sells their product at Php 35,000.00 to Php 60,000.00 depending on its specifications and they are all branded and with international warranties. Based on the considerations in production, the company is settled to sell the product at a price of Php 30,299.50. In terms of market competition, the company offers a 2 year warranty, promotions and discounts to the customers who buy at least 10 laptop computers. Since production is done locally, the product is expected to make a good impression in the market because of its reasonable price and its quality. Assets such as equipments, machineries and buildings are considered since every year they are subjected to depreciation. Other than the owner’s capital, we decided on getting long term loan of Php 20,000,000.00 with an interest of 12% and 10 years to pay, in addition, properties are used as collateral for the said loan. As shown in the income statements on the previous pages, we can now have a financial report which can be seen throughout the next pages. TOTAL PROJECT COST The purchase of equipment, building, land and working capital amounted to Php 62,101,024.53 the company’s total project cost. We can say that the company is in good condition to start the business because of the projected income statement. MANUFACTURE OF LAPTOP COMPUTERS Total assets amounted to Php 66,899,907.38in the first year where most of it will be coming from our fixed assets composed of land, building and equipments. Part of our liabilities will be for the owners' equity and for our long-term loans. Current Assets = Php 22,487,259.38 Fixed Assets = Php 44,412,648.00 Total Assets = Php 66,899,907.38 PROJECT COST: AMOUNT LAND 10,500,000.00 BUILDING 21,000,000.00 EQUIPMENT 17,296,705.00 WORKING CAPITAL 13,304,319.53 TOTAL PROJECT COST 62,101,024.53 SOURCES FOR FINANCING SUPPORT For the company to be in business for a long time the company must balance its sales and expenses. ACBS Inc. Laptop Manufacturing will not only stand on their own in terms of capital thus the company will seek for other modes of financing like the bank and part the owner’s equity. Considering the inconsistency of the market due to change in currency and other economic effect the values that will be used will not be constant with respect to its time. MANUFACTURE OF LAPTOP COMPUTERS 1. Bank ACBS Inc. Laptop Manufacturing will loan an amount of Php 20,000,000.00 with an interest of 12% annually, which is payable within 10 years. With the given span of time, the company will pay the bank with agreeable profit. 2. Owner’s Equity ACBS Inc. Laptop Manufacturing will have the owner’s equity to provide the initial working capital. SALES FORECAST Year Forecast demand Production Forecast (MARKET SHARE: 5 %) 2008 63,202 3,161 2009 66,998 3,350 2010 70,794 3,539 2011 74,589 3,730 2012 78,385 3,919 DIRECT LABOR Position Quantity Rate/Day Monthly Annually Packager 10 Php 350 Php 91,000 Php 1,092,000 Quality Controller 5 Php 350 Php 52,500 Php 630,000 Skilled workers 20 Php 420 Php 252,000 Php 3,024,000 Machine operators 10 Php 350 Php 91,000 Php 1,092,000 TOTAL Php 5,838,000 MANUFACTURE OF LAPTOP COMPUTERS ADMINISTRATIVE AND GENERAL EXPENSES Position Quantity Monthly Annually General Manager 1 Php 30, 000 Php 360, 000 Marketing Manager 1 Php 25, 000 Php 300, 000 Production Manager 1 Php 25, 000 Php 300, 000 Assistant Marketing Manager 1 Php 20, 000 Php 240, 000 Assistant Production Manager 1 Php 20, 000 Php 240, 000 Operation Manager 1 Php 18, 000 Php 216, 000 Accountant 2 Php 50, 000 Php 600, 000 Secretary 1 Php 15, 000 Php 180, 000 TOTAL Php 2, 436, 000 SELLING EXPENSE 1,500.00 P/UNIT INDIRECT UTILITIES EXPENSES 3,099,600.00 P/YEAR ADM & GEN EXPENSES 2,136,000.00 P/YEAR OTHER INDIRECT EXP. (EX. RENT) 209,600.00 P/YEAR TOTAL INDIRECT EXPENSES 5,445,200.00 P/YEAR RAW MATERIALS The materials needed in manufacturing ASBC Laptops are available. The major parts of a laptop computer are mother board, processor, hard disks, video cards, RAM, LCD, Power Supply, Speakers, CD-ROM drives, Sound cards, and Battery. Other parts are subject to minor parts and sometimes they are just called as accessories LIST OF RAW MATERIALS ITEM and BRAND NAME & SPECIFICATIONS PRICE QUANTITY CALCULATIONS COST Processor Intel Celeron D 310, 256KB L2 Cache, 533MHz FSB, 2.13 GHz 59 976/box (30 pcs) 1pc/unit (59976/30)*1 Php 1 999.20 MANUFACTURE OF LAPTOP COMPUTERS Hard Disk Seagate Hard Disk Drive 7200RPM -- 40GB 21 184/box (10 pcs) 1pc/unit (21 184/10)*1 Php 2 118.40 Video Card PowerColor ATI Radeon X550EZ 256MB, 128bit, TV/DVI 51 008/box (20 pcs) 1pc/unit (51008/20)*1 Php 2 550.40 Memory Kingston DDR266/333 256MB 79 176/box (30 pcs) 1pc/unit (79 176/30)*1 Php 2 639.20 Speakers Amplified Stereo Speakers, Ordinary --Black 1 800/box 1pc/unit (1 800/30)*1 Php 60.00 DVD-ROM/RW, CD- ROM/RW Toshiba 16x Double Layer DVD±RW/±R/CD Internal(White/Black) 11 152/box (5 pcs) 1pc/unit (11 152/5)*1 Php 2 230.40 Sound Card Creative Sound Blaster 5.1 Sound Card (SB0680) 34 752/box (30 pcs) 1pc/unit (34 752/30)*1 Php 1 158.40 Touch pad Super Smooth Touch pad, w/ scroll, black color 46 444.8/box (30 pcs) 1pc/unit (46 444.8/30)*1 Php 1 548.16 Bluetooth USB Wireless -- MSi Btoes D-Link DBT-122 20 400/box (30 pcs) 1pc/unit (20 400/30)*1 Php 680.00 Infra Red Infra Red USB Adapter 17 952/box (30 pcs) 1pc/unit (17 952/30)*1 Php 598.40 MANUFACTURE OF LAPTOP COMPUTERS Keycap IBM Super Slim Keycaps 6 000/box (30 pcs) 1pc/unit (6 000/30)*1 Php 200.00 Screws Philips screw 3.5mm2 14/box (100 pcs) 46pcs/unit (14/100)*46 Php 6.44 TOTAL P 15 789.00 LIST OF PARTS OF MOTHERBOARD ITEM/VALUE PRICE QUANTITY CALCULATION COST Integrated Circuit Buffer 74ACT02- SO14 800/box (100 pcs) 1 (800/100)*1 Php 8.00 Buffer, 74ACT14SC 880/box (100 pcs) 1 (880/100)*1 Php 8.80 Capacitor, 100nF 65/pack (10 pcs) 6 (65/10)*6 Php 39.00 Capacitor, 100pF 65/pack (10 pcs) 6 (65/10)*6 Php 39.00 Resistor, 3K3 18/pack (100 pcs) 1 (18/100)*1 Php 0.18 Resistor, 4K7 18/pack (100 pcs) 3 (18/100)*3 Php 0.54 Resistor, 10R 18/pack (100 pcs) 2 (18/100)*2 Php 0.36 Resistor, 15K 18/pack (100 pcs) 3 (18/100)*3 Php 0.54 MANUFACTURE OF LAPTOP COMPUTERS Scroll 1 000/box (50 pcs) 1 (1 000/50)*1 Php 20.00 TOTAL Php 139.18443 LIST OF PARTS OF LCD Plastic Molded Case 2 000/box (50 pcs) 1 (2 000/50)*1 Php 40.00 Polarized Glass 2318.3696/box (10 pcs) 4 (2 318.3696/10)*4 Php 927.34784 Nematic liquid crystals 77 408/box (100 pcs) 2 (77 408/100)*2 Php 1 548.16 Polarizing Film 795.3672/box (100 pcs) 2 (795.3672/100)*2 Php 15.907344 TOTAL Php 1,531.42 LIST OF PARTS OF LAPTOP CASE Polyvinyl Chloride (PVC) resin P89.75/kg 3 (89.75/2.2)*3 Php 122.386 Resin pellet 254.24/kg 3 (254.24/2.2)*3 Php 346.69 Colorant 19220/box (20 pcs of 100ml) 0.5 (19220/20)*0.5 Php 480.50 Power Buttons 15567.91/box (3000 pcs) 6 (15567/3000)*6 Php 31.134 TOTAL Php 980.71 LIST OF PARTS OF BATTERY Fuel Cell 6 576/box (20 pcs) 1 (6 576/20)*1 Php 328.80 Battery charger Case 338.1762/pack (5 pcs) 1 (338.1762/5)*1 Php 67.63524 MANUFACTURE OF LAPTOP COMPUTERS Battery case 253.63215/pack (5 pcs) 1 (253.63215/5)*1 Php 50.72643 TOTAL Php 447.16167 LIST OF PARTS OF BATTERY CHARGER Wires 18-AWG 2,250/roll (150 meters) 1 (2,250/500)*1 Php 15.00 Capacitor, 100F 16V 85/pack (10 pcs) 1 (85/10)*1 Php 8.50 LM25/6-ADJ 28 447.44/box (80 pcs) 1 (28 447.44/80)*1 Php 355.593 L1 68uH @ 5A 1 935.2/box (100 pcs) 1 (1 935.2/100)*1 Php 19.352 Schottky Diode @ 5A 415.5842/box (1028 pcs) 2 (415.5842/1028)*2 Php 0.81 Resistor, 680R 18/pack (100 pcs) 1 (18/100)*1 Php 0.18 Capacitor, 100pF 65/pack (10 pcs) 1 (65/10)*1 Php 6.50 Diode, 1N914 200/box (100 pcs) 1 (200/100)*1 Php 2.00 Capacitor, 680F 16V 110/pack (10 pcs) 1 (110/10)*1 Php 11.00 Resistor, 200R 18/pack (100 pcs) 1 (18/100)*1 Php 0.18 Resistor, 0.05R ½ W 18/pack (100 pcs) 1 (18/100)*1 Php 0.18 Capacitor, 0.1F 65/pack (10 pcs) 2 (65/10)*2 Php 13.00 Resistor, 1K 18/pack (100 pcs) 2 (18/100)*2 Php 0.36 Resistor, 332K 18/pack (100 pcs) 1 (18/100)*1 Php 0.18 MANUFACTURE OF LAPTOP COMPUTERS LMC6081 28 447.44/box (80 pcs) 1 (28 447.44/80)*1 Php 355.593 Resistor, 30.1K 18/pack (100 pcs) 1 (18/100)*1 Php 0.18 Resistor, 113 18/pack (100 pcs) 1 (18/100)*1 Php 0.18 Resistor, 10K 18/pack (100 pcs) 1 (18/100)*1 Php 0.18 Resistor, 100K 18/pack (100 pcs) 2 (18/100)*2 Php 0.36 VN01A 28 447.44/box (80 pcs) 2 (28 447.44/80)*2 Php 711.186 3P Male plug 28/pack (2 pcs) 1 (28/2)*1 Php 14.00 3P Female plug 54/pack (2 pcs) 1 (54/2)*1 Php 27.00 TOTAL Php 1 540.88 TOTAL PER UNIT COST = P 15 788.75 + 424.48 + 447.16167+139.19 + 1 531.42 + 1,540.88 + 980.71 = Php 20,852.60 FINANCIAL ANALYSIS Financial Analysis measures how profitable the product can be in terms of liquidity ratio, cash solvency, growth, profitability over a certain time. By the use of charts and other tables these data will be easily interpreted. The tests for liquidity are used to determine a firm’s ability to meet short term obligations, and to remain solvent in event of adversities. The test for debt and service are done to present the project’s ability to meet long term obligation. MANUFACTURE OF LAPTOP COMPUTERS Administrative Position Quantity Monthly Annually General Manager 1 Php 30, 000 Php 360, 000 Marketing Manager 1 Php 25, 000 Php 300, 000 Production Manager 1 Php 25, 000 Php 300, 000 Assistant Marketing Manager 1 Php 20, 000 Php 240, 000 Assistant Production Manager 1 Php 20, 000 Php 240, 000 Operation Manager 1 Php 18, 000 Php 216, 000 Accountant 1 Php 25, 000 Php 300, 000 Secretary 1 Php 15, 000 Php 180, 000 TOTAL Php 2, 136, 000 Direct Labor Position Quantity Rate/Day Monthly Annually Packager 10 Php 350 Php 91,000 Php 1,092,000 Quality Controller 5 Php 350 Php 52,500 Php 630,000 Skilled workers 20 Php 420 Php 252,000 Php 3,024,000 Machine operators 10 Php 350 Php 91,000 Php 1,092,000 TOTAL Php 5,838,000 Indirect Labor Position Quantity Daily Wage Monthly Annually Technicians 3 Php 420 Php 37,800 Php 453,600 Salesperson 3 Php 350 Php 31,500 Php 378,000 Deliverymen 2 Php 350 Php 21,000 Php 252,000 Stockman 2 Php 350 Php 21,000 Php 252,000 Security Guards 8 Php 350 Php105,000 Php 1,008,000 Janitors 6 Php 350 Php 63,000 Php 756,000 TOTAL Php 3,099,600 MANUFACTURE OF LAPTOP COMPUTERS TAXES Taxes is a contribution for the support of a government required of persons, groups, or businesses within the domain of that government and some employees define tax as a burdensome or excessive demand; a strain because they didn’t find any change happening in their own country, so why pay tax? Employees need to pay tax or the direct income tax which is automatically deducted to their monthly salary and it its 35% of their income because it is a corporation, meaning there is partnership. Here are the computations of our taxes due for the first year of operation of the company’s financial statement to give a preview on how much can we share to the government: SUPPLY OF COMMODITIES: The introduction of our product in the market would bring about higher level of competition in the laptop computer industry. Because of the unveiling of our product, the consumers are given an additional option or choice in purchasing laptop computers. 2008 2009 2010 2011 2012 Net income before taxes 7,501,316.20 8,881,030.95 10,260,745.70 11,652,944.21 13,032,658. 96 Income Tax Rate 35% 35% 35% 35% 35% Taxes Due 2,625,460.67 3,108,360.83 3,591,260.995 4,078,530.47 4,561,430.6 36 MANUFACTURE OF LAPTOP COMPUTERS The demand for laptop computers is increasing everyday due to the daily improvement of technology. This fact is very vital in our operation. Furthermore, our company will be the first local manufacturing company of laptop computers. Although the competitions are all multinational companies, and some may doubt the quality of our product, we will match up with them by proper and effective introduction of our product in the computer industry. By the time that the company matures in operation, distribution of the product will expand not only in Metro Manila but also across the different regions of the country, since the aim of the company is to provide high quality laptops at the lowest reasonable cost. Demand for Materials: Our company can contribute to the economic growth of our country by patronizing local materials and parts. Most computer chips and parts are actually manufactured here in our country, so it is really going to help in boosting our economy. Still, there are still some parts and components of the laptop computer that are not available in our country, so our company still needs to import these parts from other countries. Waste Disposal: Wastewater that conveniently drains out of our toilets, baths and kitchen do not truly disappear. Untreated wastewater eventually winds up into rivers, streams and groundwater and pollutes them. While the average Filipino households are very much aware of the importance of water for drinking, MANUFACTURE OF LAPTOP COMPUTERS ORGANIZATION AND MANAGEMENT STUDY: The management structure of the company provides the fundamental flow of responsibilities within the company. The management structure of the company is designed to come up with efficient supervision and operation. The company structure is divided into four departments, namely the Administrative Department, who is in charge of decision making and overall supervision of the company, the Production Department, the Sales & Marketing Department, and the Human Resources Department. The Administrative Department is headed by the General Manager. He monitors the total operation of the company through the reports of the managers in different departments. The Production Department, under the supervision the Production Manager, is in charge of the acquisition of the essential materials needed for production and the assembly of the product. The Production Manager the one supervising the overall manufacturing of the products, from the raw materials, to the process and eventually to the finished goods. On the Other hand, the Sales & Marketing Department, headed by the Sales & Marketing Manager, is in charge of the market planning, sales and distribution of the product. The Human Resources Department is in charge of the recruitment of the workforce, providing them with sufficient salaries and social benefits. This department is headed by the Technical/Personnel Manager. MANUFACTURE OF LAPTOP COMPUTERS Social and Economic Factors Affected employment Project Production Taxes Income Supply for Materials Supply of Commodity Market Market Domestic National Government Municipal Government Individuals Family Improved standard of living Import Substitute Additional Supply Foreign Community Development Foreign Exchange Saving Lowering of PRices Increase Foreign Exchange Reserves Utilization of local materials MANUFACTURE OF LAPTOP COMPUTERS PERSONNEL DESCRIPTION Administration General Manager The general manager is the top executive officer, the over-all manager of the corporation. The general manager monitors the total operation of the company through the reports of the managers in different department. He has the authority to grant or deny request made by each department regarding company operation. The general management of the business will be the responsibility of this person. Marketing manager & Assistant Marketing Manager The sales/marketing manager is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities. The sales/marketing manager is responsible for influencing the level, timing, and composition of customer demand in a manner that will achieve the company's objectives. Production manager & Assistant Production Manager Production manager is the one supervising the overall manufacturing of the products, from the raw materials, to the process and eventually to the finished goods. He also manages the maintenance of the machinery and the quality control of the products after it is produced. The production manager will administer the product research and production functions. MANUFACTURE OF LAPTOP COMPUTERS Deliverymen They are the ones responsible for the delivery of the product to their destination in time and in good condition. They are also responsible for loading and unloading the products to the delivery truck in case there is no need for forklifts. They also help in the inventory of the products in the warehouse. Salesperson The sales representative somebody employed by a company to go to prospective customers with a view to selling them the company's products and talk to them face to face. They need to have some persuasive skills and some other knowledge to get an effective performance. Stockman They are the one who are responsible for the storing of laptops in the storage area and they must secure the products on harmful place. DEPARTMENTS’ DESCRIPTIONS: TREASURY AND ACCOUNTING DEPARTMENT  The treasury and accounting department will be concerned with the management of the monetary affair of the company. Also this department will be responsible in maintaining the records of purchases, sales, cash, disbursements, and cash receipt. MANUFACTURE OF LAPTOP COMPUTERS PRODUCTION DEPARTMENT  The production department will be concerned with the purchasing of the raw materials, production of products and the selling of those products. MARKETING DEPARTMENT  The marketing department will be responsible for distribution of the product. This department is the one who initializes marketing, advertising and sales. HUMAN RESOURCES DEPARTMENT  The Human Resources Department will be responsible for the hiring and recruitment of the employees and workers. This department will also be in charge of the documents of the employees regarding their social benefits. OFFICER AND KEY PERSONNEL Administration General Manager Qualifications:  Male, at least 45 years old  Business course graduate or Industrial Engineering graduate  At least 15 years of experience in handling business such business operation Responsibility:  Approves matters regarding company operation in every division MANUFACTURE OF LAPTOP COMPUTERS Marketing Manager & Assistant Marketing Manager Qualifications:  College graduate, preferably with background on sales  5-10 years of experience in the field of sales Responsibilities:  Responsible in conducting market research and forming sales force  In charge of selling the company’s products  Formulates sales strategies to stimulate consumed purchasing and dealer effectiveness such as display shows and various selling efforts. Production Manager & Assistant Production Manager Qualifications:  Male, 30 to 40 years old  Industrial/Computer/Electrical Engineering graduate with license  At least 10 years of experience in handling such position. Responsibilities:  In charge of production schedule and process functions  Administers the different productions functions including quality Technical/Personnel Manager Qualifications:  Male, at least 30 years of age  Business course graduate or Industrial Engineering graduate  5-10 years of experience in handling such position. Responsibilities: MANUFACTURE OF LAPTOP COMPUTERS Indirect Labor Technicians Qualifications:  Male or Female at least 20 years of age  Electrician/Electrical Engineering graduate and licensed  At least 3 years of experience in repair and maintenance Responsibilities:  Maintenance of the machinery and electrical maintenance of the plant Security Guard Qualifications:  Male  At least 25 years old Responsibilities:  Protects and maintain order in the plant vicinity Janitor Qualifications:  Male or Female  At lease 20 years old Responsibilities:  Cleanliness and sanitation of the plant vicinity MANUFACTURE OF LAPTOP COMPUTERS Deliverymen Qualifications:  Male  At least 21 years old  Must have a professional driver’s license  Must have at least a year of driving experience  Delivery of finished products in time and in good condition  Helps in loading and unloading of products in the delivery truck in case manual work is required  Helps in the inventory of the finished product. Salesperson Qualifications:  Male or Female at least 20 years of age  At least college graduate  Excellent communication skills and pleasing personality Responsibilities:  Persuades customers to buy the product of the company Stockman Qualifications:  Male or Female at least 20 years of age  At least college graduate  Has knowledge on materials handling and storage Responsibilities:  To secure laptop products in one place MANUFACTURE OF LAPTOP COMPUTERS PROJECT IMPLEMENTATION 1. Planning and Company Organization - This is concerned with the manager of the company, what type of organization and mainly the organization of the people involved in the administration - It also refers to those in the lower divisions who will give major contributions in the good production and considerable management facility 2. Company Funds and Budget - This refers to the resources and funds available for financial matters 3. Legal Aspects - This will aid in the legality of the existence of the company in the local market - This concerns with the approval of the Municipal’s Office including the Municipal Treasurer, Engineers, Mayor and Accountant/Auditor - Registration of the product will also be scheduled in the Securities and Exchange Commission (SEC), Bureau of Internal Revenue (BIR) and the Department of Trade and Industry (DTI) 4. Land Purchasing - This refers to the accessibility of the public and the major services offered to where the plant is to be constructed 5. Plant and Building Construction