GROUP 2:

LUALHATI,
MARTINEZ,
MENDOZA, LADYLYN C.
MORALES, GLADYS L.
• A business is considered technically and
operationally feasible if it has the necessary
expertise, infrastructure and capital to
develop, install, operate and maintain the
proposed system, and that by establishing
such a system, the business will be able to
deliver goods or services at a profit.
• When considering a new business, it is important
to consider if there is sufficient access to
resources.
• One of the primary reasons that new business
fails is under- capitalization. This is due to not
enough money to keep the business going from
start up until it starts to make a profit. This can
lead to lack of resources.
A. PRODUCT
B. MANUFACTURING PROCESS
C. PLANT LOCATION AND LAYOUT
D. MACHINERY AND EQUIPMENT
E. DIRECT MATERIALS AND INDIRECT MATERIALS
F. UTILITIES
G. WASTE DISPOSAL
H. DIRECT LABOR REQUIREMENTS
I. PRODUCTION SCHEDULE
J. PRODUCTION COST
a) The product(s) and/ or service (s)
b) The manufacturing or production process
- The capacity and design
- The supplies
c) The plant location and layout
d) The machinery and equipment
e) The direct materials and indirect materials
f) The utilities
g) The waste disposal
 to identify the kind of service and variety of products the proposed
business have including its description and procedure,
 to determine the process to be used in obtaining the products and
how to distribute or deliver it to the market,
 to describe the geographical location of the business,
 to illustrate the store size and store layout of the business,
 to determine the supplies needed and all necessary machineries and
equipments to be used in the operation of the business,
 to determine where to acquire the supplies and necessary utilities for
 to define the human requirements and regulations of the business,
 to know the methods of waste disposal for the maintenance of the
store.
• Estimates of the total project cost & enumerate
the major items of capital cost

• The estimated production and over head costs

that will go into operating the proposed project

• The major technological development in the

industry which may affect the commercial or
technical soundness of the project.
• The quantity and quality of the product (s) and service (s) to be
produced
• The labor needed, both skilled and unskilled
• The utilities required
• The waste disposal method
• The transportation necessary
• This portion describes the products or services
to be produced/ provided and sold.
• Which specifies:
•The products’ physical, mechanical and
chemical properties
• Their various uses, both as finished goods and
industrial inputs.
• TRADE-OFF ANALYSIS
• The purpose of multi-criteria trade-off methods is to improve the quality
of decisions by making the decision making more explicit rational and
efficient.
• This requires the considerations of criteria (variables or indicators) e.g
cost, quality and easiness on producing
• Checklist could be used to easily rate the set criterias.
• The Checklist will be graded by all related person or those who have
knowledge on particular selection.
For example choosing a building design, it will be valid if checklist will be
answered by civil engineers, architecture or the target users itself.
PRODUCTS
• Also referred as Production/Operations Process in BRP PFS
format.
• The selected manufacturing/production process must be
described simply & clearly, preferably with the aid of flow
charts and diagrams.
• The alternative processes & the way they compare with the
chosen process must be mentioned.
• The analysis should further touch on the manufacturing/
production processes used in existing businesses with the same
or similar activity, both domestic & foreign.
• Licensing agreements & patents should also be reviewed.
MANUFACTURING PROCESS
• LOCATION:
• A thorough and comparative analysis for each potential
location should be made to determine the most ideal site.
• It has to consider the following factors:
• Accessibility to and availability of raw materials
resources;
• Availability of cheap or moderate priced utilities such as
power, water or fuel;
• Combined cost of transporting raw materials and fuel to
the site and;
• Availability of skilled and unskilled labor.
• Maps and charts of the proposed site must be included.
PLANT LOCATION
• LAYOUT
• The layout should be clearly depicted through diagrams and descriptions.
• A good layout is characterized by:
• Minimum material handling;
• Effective space utilization;
• Smooth workflow;
• Safe and conducive working area for the workers;
• Safety and sanitation facilities and;
• Flexibility of arrangements.
PLANT LAY OUT
• IDENTIFIED & INDIVIDUALLY LISTED ACCDG TO TYPE & USE
• SPECIFICATIONS, CAPACITIES & COSTS MUST BE DESCRIBED
IN DETAIL
• THE ORIGIN OF THE MACHINERY & EQUIPMENT, WHETHER
LOCAL OR IMPORTED
• THE MANNER OF & COST OF TRANSPORTING THEM MUST BE
INDICATE
• What type of equipment and technology will the business need
to produce its product/service?
• What costs are involved to purchase and set up the equipment?
What are the costs involved in the ongoing running of the
equipment?
EQUIPMENT SUPPLIERS:
• Who are the potential suppliers of the equipment?
• Where are they located?
• What sort of service and warranties do they provide?
• How long will it take to acquire the equipment and begin
operations?
MACHINERY AND EQUIPMENT
• THE REQUIRED RAW MATERIALS SHOULD BE LISTED DOWN
AND THE BASIS FOR THEIR SELECTION MUST PRESENTED.
• DESCRIPTIONS AND SPECIFICATIONS ON THEIR PHYSICAL,
MECHANICAL, AND CHEMICAL PROPERTIES MUST ALSO BE
GIVEN.
• CURRENT AND PROSPECTIVE COST OF RAW MATERIALS, THE
AVAILABILITY AND CONTINUITY OF SUPPLY, AND THE
CURRENT PROSPECTIVE SOURCES SHOULD ALSO BE
INCLUDED.
• THE VOLUME REQUIRED AT VARIOUS PHASES OF OPERATIONS
MUST BE CLEARLY PRESENTED.
DIRECT MATERIALS AND INDIRECT MATERIALS
• THIS PORTION DESCRIBES THE AMOUNT, COST, AND
SOURCES OF ELECTRICITY, FUEL, WATER, AND/OR STEAM
REQUIRED.
• THIS MUST BE DETERMINED IN RELATION TO THE
PRODUCTION SCHEDULE AND CAPACITY UTILIZATION
DEFINED. ALTERNATIVE SOURCES OF THESE UTILITIES AND THE
FEASIBILITY OF THEIR USE MUST ALSO BE DESCRIBED.
UTILITIES
• A DESCRIPTION OF THE QUANTITY, MANNER OF DISPOSAL,
AND THE COST INVOLVED IN DOING AWAY WITH EXPECTED
WASTE FROM PRODUCTION IS NECESSARY.
• THE ANALYSIS MUST BE EXPANDED TO CONSIDER THE
POSSIBILITIES OF FURTHER USING THESE WASTES
WASTE DISPOSAL
• THE VARIOUS JOBS AND FUNCTIONS NECESSARY FOR THE
OPERATIONAL STAGE MUST BE DESCRIBED.
• FOR COSTING, LABOR IS GENERALLY CLASSIFIED INTO
THREE TYPES:
* DIRECT
* INDIRECT
* ADMINISTRATIVE
• THE NUMBER OF WORKERS TO BE EMPLOYED FOR EACH JOB
CLASSIFICATION
• THE PAY SCALES
• EMPLOYEES DEVELOPMENT PROGRAMS
• THE ORGANIZATION SET-UP
• THE AGGREGATE LABOR COSTS
DIRECT LABOR REQUIREMENTS
• THE EXPECTED GROWTH IN MARKET SHARE
• THE AVAILABILITY OF FINANCING FOR POSSIBLE EXPANSION
• THE AVAILABILITY OF MORE RAW MATERIALS
• THE LEVEL OF UTILIZATION OF PLANT CAPACITY
PRODUCTION SCHEDULE
• THE MONETARY ASPECT OF ALL THE PRODUCTION PLANS IS
PUT INTO PERSPECTIVE.
• HOW MUCH DOES IT COST TO PRODUCE ONE UNIT OF
OUTPUT?
• TO ARRIVE AT THIS, THE FF MUST BE DETERMINED:
* RAW MATERIAL COSTS
* LABOR COST
* OVERHEAD COST( FIXED COST), OPERATING COSTS
(VARIABLE COSTS)
* OTHER PERTINENT COSTS
PRODUCTION COST