Bachelor of Science Business Administration

Saint Estanislao Kostka College, Inc.

Sagario St. Poblacion, Manukan Zamboanga del Norte

A PRODUCTION PLAN OF MIAM CHOCOLATE CAKESHOP

Submitted to:

RITCHELLE BENITEZ GALO

In partial fulfillment of the

requirements for the course Prof.6 (Production Management)

Second Semester

School Year 2021-2022

Submitted by:

Gumansag P. , Letran M. , Macion R. , Marcera K. ,

Merabedes J. , Milmao C. , Mortalla S. , Natividad, J. ,

Nonong, J. , Nonong M. , Ranong M. , Sambalon C. ,

Sotello B. , Suliman I. , Sumampong B. , Zamoras R.

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 REPUBLIC OF THE PHILIPPINES

BACHELOR OF SCIENCE BUSINESS ADMINISTRATION

SAINT ESTANISLAO KOSTKA COLLEGE INC.

APPROVAL SHEET

In partial fulfillment of the requirements for the degree Bachelor of Science Business
Administration, this production plan on Cakes Index Production has then prepared and
submitted by BSBA III – Block I Group 2 who is recommended for Oral Defense.

Approved by the panel on Oral Defense on May 15, 2022 at Manukan, Zamboanga
del Norte, Philippines.

Viosa B. Alendro, MBA

Chairperson, Oral Defense Panel

Raymund Salasayo, MBA Cherry Mae L. Benetez, CPA

Member Member

Ritchelle B. Galo, MBA

Adviser

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I. Acknowledgement
 First and foremost, we would like to extend our heartfelt gratitude to the people who
contributed a lot to the fulfilment of our production plan.

To Almighty God, who guided and gave us wisdom in every field of our project. To our
parents and guardians who have always been there in every circumstances throughout the
making of our production plan.

To Ate Joan Rose, who help and assist us, we thank you for giving us time in guiding us
to finish this paper.

To our good friends who morally supported and gave us words of encouragement.

And lastly, but definitely not the least to our instructor, Ritchelle B. Galo, who have
always been a great inspiration for us to work hard and make our production plan be fruitful
enough.

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II. Company and Product Logo
III. Introduction

Cake is the common dessert that present in any events like birthdays,
weddings, anniversaries and any other special occassions.

In making a cake it is important to have a complete ingredients. Good taste of

cakes is better for customers to have its loyalty and satisfaction. Also, make it with a
heart in the way that customers feel the goodness and sweetness of the cake.

Cake is often serve with dedication, love and art. Make it simple but delightful
with meaning and history to remember and touch to the customer’s heart and those are
the traits that Miam Chocolate Cakeshop will serve and give.
 IV. Executive Summary

Miam Chocolate Cakeshop is a start-up busines located at Poblacion, Manukan

Zamboanga del Norte. We specialized homemade baked chocolate cakes. We are also open
for discussing whatever ideas do you have for your chocolate dream cake. We use the finest
ingredients to ensure that our chocolate cakes taste and look great since quality and
presentation are our priority. Miam Chocolate Cakeshop hopes to catch the intrerest of
customers in terms of chocolate cakes.

Since there are sixteen (16) owners of the cakeshop; each of the owners contributed
20,000 pesos to have a capital in starting the business.

Miam Chocolate Cakeshop aim to offer its products at a competitive price to meet the
demand of local area residents. The business also aim to put up a strong market position in
town due to the mild competition in the area.
V. Production Objection

Vision

The best provider of chocolate cakes in town.

Mission

To provide and serve delicious in-class chocolate cakes and to assist and serve the
costumer’s needs and safisfactions and to sell more cakes.

Objectives:

1. To produce high-class chocolate cakes in a fair price.

2. To be able to satisfy’s customers demands in terms of chocolate cakes.
3. To run the cakeshop in a long span of time.
 VI. Business Location

The proposed production plan (Miam Chocolate Cakeshop) is located at Poblacion,

Manukan, Zamboanga del Norte. The said land area is the production site which is rented
10,000 pesos a month. The space is located along the high way, there is an accessible and
availability of transportation.

Our product will be easily accessed by the customers and be delivered to them
without further delay.
Delivery Motorcycle

The cakeshop’s free delivery location are within Poblacion Manukan to Sitio Dequis
and East Poblacion. If the limit is exceeded, a fee will be charged, depending on the location.
VII. PRODUCT DESCRIPTION

When it comes to desserts, cakes get all the attention – and for good reason. Cake is a
form of sweet food made from many ingredients like flour, sugar, milk, egg, butter, oil,
margarine and leavening agent such as baking soda or powder.

Cake is often serve with dedication, love and art. Make it simple but delightful with
meaning and history to remember and touch to the customer’s heart.

The history of cake dates back to ancient times. The first cake were very different
from what we eat today, they were more bread-like and sweetened, take the stress out of
event planning wih inspiration.
VIII. RAW MATERIALS

Cakes can have different composition and recipes but let’s focus of Chocolate Cake for
Example.

1. Cake Batter

Ingredients Quantity (cups)

All-purpose flour 4
Cocoa 4½
Brown Sugar 2
White Sugar 2
Eggs 8
Vanilla 3 tbs
Baking Powder 1 tps
Baking Soda 1 tps
Hot Water 2
Oil 12 tbs

2. Whipping Cream

Ingredients Quantity (cups)

Whip It Cream 4
Cold Water 4

3. Decorating and Icing

Ingredients Quantity
Assorted Chocolates 5
Icing Flowers 7
Airbrush Food Color 4
Fondant 1 kl
Assorted Toppers 10
IX. PRODUCTION PROCESS

The raw materials are procured from vendors as per production requirements and
stored in raw material storage room. All types of raw materials for cake batter are introduced
in drum of batter mixing machine in required quantity as per required sequence.

The mixing speeds for different components are different and maintained so as to
obtained most suitable batter characteristic. The cake batter is thus obtained.

The baking tray is appropriately greased with oil and a butter paper of appropriate
shape i.e. shape of the bottom is placed at bottom of the tray. Then the cake batter is poured
into baking tray, followed by which batter appropriately levelled and feed to oven which is
already preheated.

The baked cake is obtained from oven, its allowed to cool in cool in pan itself prior to
depanning. The butter paper is then gently removed from cake, followed by which outer skin
of cake removed with a knife and then the cake is divided into multiple layers depending on
thinkness of cake. Simultaneously whipping cream are beaten by a simple beater until
sufficiently stiff, which is then fed to holding tank of cake decorating materials.

The same process is repeated until all layer are placed, at last layer only a layer
whipping cream is whipped over the cake followed by some quick decorating by the machine
and then final finishing manually. The cake is the place in a refrigerator at appropriate
temperature, until it’s sold.
X. PRODUCT COMPONENTS

Tools & Equipment

The process involved is greasing (cooking) , Batter Mixing, Batter Mixing, Batter
Spreading, Baking, Icing , Decoration & Packaging thus machines required are as follows.

Name Description Image

Batter Mixer It is designed form mixing of
various ingredients at
appropriate speed and torque
to maintain the batter
characteristic of batter being
developed.

OVEN An oven is thermally

insulted chamber used for the
heating, baking, or drying of
a substance and most
commonly used for cooking,
commercial ovens simply
ovens that can handle large
capacity.

DISPLAY It’s a refrigerator designed to

REFRIGERATOR store the given product in
temperature controlled space
with at least one transparent
wall, so as to display stored
content.
CAKE DECORATING These set of tools are
TOOLS specifically used for
decorating cakes and other
bakery items with
appropriate design with
cream, chocolate etc.

CAKE BAKING TOOLS These are general hand tools

used for baking and are used
excessively in baking of
cakes.
OTHER EQUIPMENTS Several general tools,
utensils and equipments are
required in any bakery which
is essential for operation of
bakery and same goes for
cake operation of bakery and
same goes for goes for cake
unit.
XI. PRODUCTION PROCESS FLOWCHART

SUPPLIER

Weighing Raw Materials

Mixing of Ingredients

Greasing of Pan

Baking

Cooling
Bake

Decorating

Packaging
XII. LABOR REQUIREMENTS

Job Title No. of No. of Wages per day Total Salary per
Employee working month
days

Manager 1 25 200 5,000

Cashier/Staff 1 25 160 4,000

Delivery Boy 1 25 (on-call) 1,950

Baker 1 25 180 4,500

XIII. FINANCIALS

Projected Balance Sheet

Particulars Year 1 Year 2 Year 3 Year 4 Year 5

Liabilities &
Capital
Capital - 227,393 235,986 244,965 256,578
Opening
Balance
Add: (own 320,000 - - - -
contributions)
Add: Net 7,393 8,593 8,979 11,613 13,812
Income
Less: 100,000
Withdrawals
Closing 227,393 235,986 244,965 256,578 270,390
Balance

Liabilities
Payable to 5,000 5,000 5,000 5,000 5,000
partners
Total 232,393 240,986 249,965 261,578 275,390

Assets
Fixed Assets 41,211 41,211 41,211 41,211 41,211
(Gross)
Gross 5,000 10,000 15,000 20,000 25,000
Depreciation
Net Fixed 36,211 31,211 26,211 21,211 16,211
Assets

Current
Assets
Merchandise 39,753 83,026 125,780 173,736 224,652
Inventory
Cash & Cash 156,429 114,237 97,974 66,631 34,527
Equivalent
Total 232,393 240,986 249,965 261,578 275,390
Projected Profitability Statements

Particulars Year 1 2 3 4 5
Sales
Gross Sales 408,000 411,650 412,150 413,025 416,000
Cake
Total 408,000 411,650 412,150 413,025 416,000

Cost of Sale
Raw 132,360 136,230 136,425 138,668 139,004
Materials
Consumed
Utility 6,000 6,000 6,000 6,000 6,000
Expense
Depreciation 5,000 5,000 5,000 5,000 5,000
Wages & 185,400 185,400 185,400 185,400 185,400
Labor
Repair & 1,500 1,500 1,500 1,500 1,500
Maintenance
Cost of 330,260 335,230 334,325 336,568 336,904
Production
Add: 39,753 83,026 125,780 173,736
Beginning
Inventory
Less: Ending 39,753 83,026 125,780 173,736 224,652
Inventory
Cost of Sales 290,507 291,957 291,571 288,612 285,988
Gross Profit 117,493 119,693 120,579 124,413 130,012
Rent 72,000 72,000 72,000 72,000 72,000
Expense
Micellaneous 27,600 28,600 29,100 30,300 33,700
Expenses
Permits and 5,500 5,500 5,500 5,500 5,500
Licenses
Interest on 5,000 5,000 5,000 5,000 5,000
Share Capital
Net Income 7,393 8,593 8,979 11,613 13,812
Statement of Changes in Equity

Particulars Year 1 2 3 4 5
Partners Capital Beginning(initial 320,000 227,393 235,986 244,965 256,578
partner’s contribution)
Add: Net Income 7,393 8,593 8,979 11,613 13,813
Less: Withdrawals 100,000
Partner’s Capital Ending 227,373 235,986 244,965 256,578 270,390

Computation of Production of Cake

Items to be manufactured
Cake

Working hours a day 8

Production per day 35 kg
No. of working days in month 25
No. of working days in a year 300
Machine capacity per annum 10,500 kg
Production per annum 10,500 kg
PRODUCTION OF CAKE/PRODUCTION SALES

Prices: P 150, P 750, P 950

Year Price Range No. of Pieces Total amount of sales

First Year P 950 240 228,000
P 750 240 180,000
408,000

Second Year P 950 214 203,300

P 750 237 117,750
P 150 204 30,600

Third Year P 950 209 198,550

P 750 239 179,250
P 150 229 34,350

Fourth Year P 950 211 200,450

P 750 226 169,500
P 150 243 36,450
Cupcakes P25 265 6,625

Fifth Year P 950 215 204,250

P 750 225 168,750
P 150 242 36,300
P 25 268 6,700

Raw Material Cost

Year Amount
First 132,360
Second 136,230
Third 136,425
Fourth 138,668
Fifth 139,004

Format for labor charges

Particulars Salary wages per No. of employee Total salary a year

month
Cashier/Staff 4,000 1 48,000
Manager 5,000 1 60,000
Baker 4,500 1 54,000
Deliver Boy (on-call depending 1 23,400
on deliveries)
XIV. Assumptions
1. Production Capacity of Cake is 35 kg per day.

2. Working shift of 8 hours per day has been considered.

3. Raw Materials stocks are good for 1 month that can make 20-30 cakes (depending on the
size).

4. Selling prices and Raw Materials costing has been increased by 5% respectively in the
subsequent years.

5. The delivery personnel is on call depending on deliveries.

6. The location of the cakeshop is easy to access since it is located near the highway.

7. The cakes may be colorful outside but the inside of it is chocolate flavor.