ESTABLISHMENT OF AN INTEGRATED DATABASE PROGRAM FOR VALUE ANALYSIS OF PRODUCTION AND PROCESSING OF WET, DRIED AND MILLED RICE

MARY GRACE R. ALONER

SUBMITTED TO THE FACULTY OF DEPARTMENT OF INDUSTRIAL ENGINEERING COLLEGE OF ENGINEERING AND AGRO-INDUSTRIAL TECHNOLOGY UNIVERSITY OF THE PHILIPPINES LOS BAOS IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF

BACHELOR OF SCIENCE IN INDUSTRIAL ENGINEERING

APRIL 2014

Permission is given to the following people to have access to this thesis: Available to the general public Available only after consultation with author/thesis adviser Available only to those bound by confidentiality agreement Signature of Student: ______________________ Signature of Thesis adviser: ______________________ Yes Yes No

1. INTRODUCTION

1.1 Background of the Study Under the administration of President Benigno S. Aquino III, the flagship program Agrikulturang-Pinoy (Agri-Pinoy) Rice Program was launched to uphold agricultural development programs through government interventions and initiatives aiming for food security and self-sufficiency, resource management and support services from farm to table (da.gov.ph,2014). Policy-oriented activities are also part of the program. Domestic production of rice is emphasized in the program as one of key strategies for self-sufficiency. The use of technology in communication plays a major role in information dessimination in educationg farmers with reforms and new farming methods accross the country. International Rice Research Institute (IRRI) use online tools in sharing rice technologies and knowledge to farmers in improving their production. One project of IRRI is the Rice Crop Manager. It is a smarthphone application that allows user to have specific virtual consultation regarding nutrient, pest, weed, grain variety or irrigation. If these recommendations are followed, it is aimed to increase yield by 300kg per hectare on each season. Department of Agriculture through other government agencies, like Philippines Rice Research Institute (PhilRice) is making its efforts to achieve rice sufficiency. These programs are also supported by a campaign by providing rice consumers information on awareness of consumption. Year 2013 was launched as the year of rice promoting awareness on consumption and wasted rice. This campaign is

targeting three segment of population such as producers, policy-makers and consumers (PhilRice,2014). As the Agri-Pinoy Rice program aims to reach all farming communities all over the country, its effectiveness and impact should be measured. One of the expected output of these projects for the program is to promote efficiency resulting to increase the yield or reduce cost on rice farming productions.In this study, value analysis is used to measure the value addition in every stage of production and processing of rice pertaining to the ratio of price of product on each stage over the cost of producing the product. It is also used to measure technological impacts by measuring effect of changes to value. Furthermore, Value analysis serves as a tool in identifying areas for improvement in reducing cost associated. This study will generate value analysis using the information available on Countrystat. The study focuses on the efficient use of information by means of transforming the available information into a useful analysis. By building a database program for value analysis of the rice production, the process can be easily done for future analysis and on accessing previous years. It is hypothesized by the researcher that through value analysis, the technological advances on different regions of the country are said to be equally distributed and value on a particular location progresses through time.

1.2 Significance of the Study The data alone on websites are very useful to most research analysis and it is said to look for its potential use. The data available on CountryStat, mainly from agricultural surveys are integrated with other statistical information gathered by other agencies like NSO, DOLE, etc. Its facts and figure provides information for public use

for references and for other purposes it may serve. These are statistical indicators that are essential in making generalization on agricultural or economic performance and developments. However, these indicators that may appear to have single or few implications can be manipulated and transformed into more useful information. The database program will serve as the storage database program for these new set of information. Value analysis is a tool for researchers identify areas for improvement in the process since the production is divided into three stages. It will efficiently illustrate effect of changes, any increase or decrease, on value by identifying the changes in cost such as innovation in technology, effective use of pesticide, improvement on irrigation etc. The division into stages will also help identify the stage where rice has its highest and lowest value. The second output of the program involves the analysis of stakeholders contribution of cost which significantly indicates who burdens costs of production. In this aspect, policy makers can concentrate creating government programs or tools helping them reduce or redistribute costs. Also with the help of the application, update for future analysis can be easily done by updating the data on the database. Objectives of the Study The general objective of this study is to create an application that can be used in the value analysis of rice production and processing for the Department of Agriculture, Bureau of Agricultuaral Statistics: Specifically the study aims: 1. To create the user-friendly application using Macromedia Dreamweaver 8.0 that will organize, evaluate, present and store information.

2. To make use of existing information available on countrystat.bas.gov.ph and NFA, transform these into a new useful or more meaningful information using value analysis. 3. Present and interpret the value progression of rice in each stage of rice production and processing. 4. To show distribution of costs on stakeholders on each stage of rice production and processing.

The applications functions and objectives: 1. Has user-friendly interface to easily explore and use the application. 2. Integrates, organize and store data for future use. 3. Allows computation for the value of rice per stage of rice production and its average. 4. Present summary of information in the form of graphs and tables. 5. Allows to store information in a database and to access for download copy.

1.3 Scope and Limitations of the Study The study covers documentation and observation of processess of rice production particularly the wet,drying and milling stage. The data used are limited to the available data on Countrystat. These information are based from the previous and most recent survey conducted by BAS. The set of data from the Cost and Returns of sub national section of the Countrystat database. They were from 2009 up to 2012. The costs are based from the average annual production of wet and dry harvesting season. Although

different crops are available from Countrystat, only rice was taken consideration. The application covers the sub-national crop production which enables the user to select area from regional level. The commercial rice represents the type of grain as a whole and was taken consideration in the study. The type of costs taken consideration in the rice production depends on the classification made from BAS surveys. This restrain the available use data. Farmgate price, farmgate price of dried palay and regular milled rice were the prices used for wet, dried and milled stage respectively. Other costs such as trading, drying and milling are derived from National Food Authorithy website. 1.4 Time and Place of the Study Most of the researches took place at University of the Philippines Los Baos, Laguna and 1184 Ben-Lor Bldg Quezon Avenue, Quezon City where the Bureau of Agricultural Statistics office is located. Programming and report writing were done at the researchers residence at Valenzuela City, Metro Manila. The duration of the study is from August to February 2014. Schedule of activities are shown at Table 1. Table 1. Gantt Chart of Activities

1.5 Statement of the Problem In spite of several efforts of the government for rice development programs in the country, mostly few regions and areas only access this opportunity. Since the long term goal of the Agri-Pinoy program of the Department of Agriculture is to uphold domestic farming of rice in order to have sufficiency all over the country addressing poverty, food security and economic stability, it is necessary to measure distribution of these technologies and programs. The information available on Countrystat are significant because of their potential use for further research and deeper analysis. Most, if not all, users need to access these information in order to make important conclusions for the purpose of research. The data are the one already available on different government agencies which mostly are accessible and are open to the public through websites. This information is categorized into Secondary type of data or the data that are previously collected. In this study, the researcher aims to efficiently use this available information by manipulation and transforming these into more useful information and providing another perspective on analysing value of rice. Through value analysis, a set of information already available such as price and posts are used to make valuable interpretation and conclusion. Building an application also enables the user to make value analysis easier and better.

2.0 REVIEW OF LITERATURE

2.1

Rice cultivation

Rice (Oryza Santiva L.) belongs to the family Gramineae or simply family of grass, some of which cereals and sugar cane belong to. The word rice has modified from its original word Erus to rice, riz and reis. Later on, it evolved on several terms in which it was based on stages of growth and the different preparation. Example, growing rice plant, rough rice, hand-pounded rice and milled white rice has different terms but which simply refers to rice (Grist, 1959).In the Philippines, the earliest evidence of rice cultivation can be observed in the terraces of the Ifugao. The rice farming in the Philippines has been practiced ever since as it became the main source of food diet of an average Filipino as it is rich in protein and a good energy source (Juliano,1993).Now, rice industry has the top crop production at 20% compared to corn with only 6% of all crop (countrystat,2014). The rice programs for the development for rice sustainability has been countinuously propagated all over the country. The complete list of the specific interventions provided by the Agri-Pinoy Rice Program is shown at Appendix A (DA,2014). According to The Philipines Recommends For Rice Postproduction Operations 2001, the process flow of rice production after harvesting depends whether it is for commercial or farm level consumption.Farm level refers to production that does not reach the distribution due to consumption of own rice produced. The diagram shows the difference between farm level and commercial postproduction. The commercial level

consists of traders, additional storage and marketing. In this study, the assumption was commercial level of production was used. Farm level
harvesting Field drying harvesting

Commercial level
Field drying

stacking/piling hgg

stacking/piling g

threshing

drying

threshing

Paddy storage milling

Procurement of traders Paddy storage milling

drying

consumption

Rice storage

marketing

Figure 2.1.1 Farm-level vs commercial level postproduction of rice

2.2

Value Analysis

Value analysis or value engineering was first used at General Electronic by an engineer named, Lawrence Miles during 1947. During World War II, there were limited resources on supply and manpower and alternatives were found to reduce cost on production. The said technique was developed into a more systematic process called value analysis (Rich,2000). Value, defined as the ratio of the price market is willing to pay for the product and the total cost of production, is used as the key indicator of rice progression. It is a

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quantitative measure to show the ratio between cost and price. This implies that the higher the measure of value, the better. The two major objectives of value analysis is (1) to improve value by sustaining or improving performance attributes and (2) to eliminate unnecessary or reducing overall costs (Project Development Procedures Manual,2002). Its approach is understanding its constituent components and their associated costs. Value analysis can be applied to a product or process. The product or process may be broken down into components, which can be associated with the functions they support (Tidd,2005). The value of the product or process then may be increased by improving or replacing individual components. This also applies to the whole item being analyzed, which may be completely replaced with a more functional or lower cost solution. In this study, the function of the product is represented by the price of rice in the market. Since the price of rice must be ideally low for consumers, reducing cost is the only option in increasing value. Choosing alternatives of grain used or improvement on farming methods are some of the possible means of making significant decrease in cost. In the Agri-Pinoy Rice program, effectiveness of project are aimed to measured through value analysis. The process of rice production is divided into the three stages to help evaluate progression of value throughout the process. Identifying the stage with lower value will help it identify areas for possible improvement.Value analysis ratio gives a more meaningful indicator in terms of economic purposes. Throughout time, value can indicate economic performance of rice production.

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2.3 CountrySTAT The Bureau of Agricultural Statistics (BAS) is a staff bureau under the Department of Agriculture (DA) and serves as the source of official statistics on agriculture. BAS is the major and the focal agency for agricultural statistics.Its data systems and procedures are governed by standards and such other rules or norms set in the Philippine Statistical Sector. The other major players are the National Statistics Office (NSO) which is in charge of conducting the Census of Agriculture and Fisheries (CAF) and other censuses and surveys as well as foreign trade compilation of which agriculturebased data are accessed by BAS and the National Statistical Coordination Board (NSCB) which serves as the coordinating and policy making body of the PSS.

The CountrySTAT ,with the http address countrystat.bas.gov.ph, is a web-based system that integrates national food and agricultural statistical information aiming the harmonization of national data and metadata collections for analysis and policy making. The CountrySTAT Philippines is established by the Philippine Statistical System (PSS) through the Philippine Statistical Association (PSA). In line with the Food and Agriculture Organization of the United Nations (FAO) 's project "Strengthening the National Statistical Systems of Selected Countries in the Asian and Pacific Region", a Letter of Agreement stated that FAO would provide the necessary funds to support CountrySTAT. The databases in the CountrySTAT Philippines are organized according to two major domains: CountrySTAT Core and CountrySTAT Sub-national. The CountrySTAT core data consist of national data shared with FAOSTAT database while the subnational

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data are detatiled information on sub-national level. This arrangement of CountrySTAT Core and Subnational data provide end-users to navigate through the databases from either geographic or thematic paths. The database and statistical tables posted in the CountrySTAT are backed up by metadata. The CountrySTAT Philippines have statistical data series surrounded by statistical metadata patterned to FAOSTAT's framework. This also serve as a complementary system to FAOSTAT where its outputs are designed to load easily into FAOSTAT. This information flow helps FAOSTAT's capacity to provide high quality statistical data at the international level. It also promotes exchanges of data within countries, between countries and between FAO and countries. As envisioned in the development of this system, data from the CountrySTAT, will be uploaded into FAOSTAT. As such, country contributions to international agriculture and food statistics will arrive from only one source. The CountrySTAT will initiate quality control steps at the country level as part of the FAOSTAT data quality monitoring and evaluation system. The benefits derived from improved national statistical systems will be conveyed to FAOSTAT in the form of high quality data contributions from the countries.

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3. 0 MATERIALS AND METHODS

3.1 Conceptual/Operational Framework of the Study The study focuses on establishing a system that will help in making Value Analysis of rice production using the available data from countrystat.bas.gov.ph. The variables considered in building the system consists of man, method and environment. It is shown at Figure 3.2 below.

Man End User Other Government Agencies

Database Accessible Database Simplified and Userfriendly interface

Method Programing Value Analysis

Environment Information Source

Figure 3.1.1 Conceptual Framework of the Study

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The application which is a database program enables easier presentation of an energy audit, provides accessibility of Value Analysis and storage of data. The application also aims to provide a user-friendly environment for functional use. In terms of man that is involved in the study, the end user is an important factor because the program is designed for his efficient use. Other government agencies that provides information to Countrystat also falls under this variable since they are considered sources of information. Under the method is the process of value analysis. This involves computation and analysis of necessary data. The value analysis function of the program is the core of the study. The study covers a lot of programing which is also a vital part of the study. It is important to always check that the program provides correct analysis and results are valid. In the variable Environment, information source is considered as a factor since the data that are used in the study are restrained to what is available on Countrystat. The scope of the study which is from production to pre-distribution phase is divided into three stages. These stages are divided accordingly to the phase of the product as it progress such as (1) wet, (2) dried and (3) milled rice. Table 3.1.1 shown below summarizes the expected output of the study. Table 3.1.1 Expected Output of the study Stages of Rice Wet Output 1 Output 2 Dried Value analysis Percentage distribution of cost to stakeholders Milled

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On each stage, there are three types of output. First output is where the progression of value throughout the production is shown. Second output shows the percentage distribution of costs to each stakeholder involved in each stage. In this function of the program, the contribution of costs of the stakeholder is clearly identified. The third output shows the percentage distribution of energy used on the overall production and the itemized amount of energy involved. Moreover, the study involves key factors that is essential in building the database program. This also shows the requirements and tools, processes, outcome and effect of the study on a wider perspective. Figure 3.1.2 below shows the key factors of the study.

Figure 3.1.2 Key Factors of the Study These key factors to be considered in the study are categorized into four: 1) input, 2) throughput, 3) output and 4) impact. The input includes the necessary tools that will be used in the study. Secondary data from the website countrystat.bas.gov.ph are the main requirements for the analysis to be done. Sufficient knowledge in programming and value analysis are also needed to build the application. Under the Throughput factors are the processes to be done in the study. Reengineering process involves improving the data flow of information designed for updating the application and functionality for the end user. Creating the application which mostly involves programming is a vital part of

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building the application. The Output factor comprises the Value Analysis results from the application. The study is also expected to produce efficient use of data. Under the Impact factor, the study is expected to produce beneficial studies to agricultural sector and encourage other data manipulation studies based on available government information.

3.2 Re-Engineering Procedure Since the data to be used in the study are already available at countrystat.gov.ph the process of integration of information would be done with the help of an application. Coordination with Bureau of Agricultural Statistics was conducted to obtain data needed for the study. Availability of information from each agencies are noted. These data includes costs, prices, statistics and other valuable information for both data gathering and background information of the study. Interviews and site observation are also conducted. Countrystat.bas.gov.ph, the official website of Bureau of Agricultural Statistics was visited and thoroughly observed. It was also observed what programming language was used on the website in order to find the compatible language to be used for the application for the future integration. When the programming language is selected and all information are set, the application is ready to be built. Interfaces were made and their respective codes. Data allocation are placed and organized in the database program. All the necessary data from Countrystat were downloaded and stored in the application. The application is basically involves the log-in, search for records, value computation and a summary of results. The activity of the user are stored in the localhost that serves as the database of the program.

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Different processes or stages that are involved in rice production are identified and used in the program to show the progression of value within a time period of a certain location. Data flow diagrams are also used to illustrate how information is transformed and stored. Debug and Test run of application was conducted. The efficiency of the application is measured by the test run conducted. Case by case scenarios are applied and results were shown. Validity of the results are highly considered. These trials are also conducted to identify the limitations of the application. The flexibility of the application was also examined to see its adaptability to be functional for future alterations. Lastly, maintenance of the database application was set. The application should be administered regularly to make sure data are updated. A set of instructions and reminders about the program was made.

3.3 Definition of Terms The following terms and definitions are used in the study: Consumers- acquire goods or services for direct use or consumption and not for manufacture or resale. Database - an organized body of related information Farmers those who are the responsible for planting and cultivation of rice Farmgate price - price of the product at which it is sold by the farm Information - a collection of facts from which conclusions may be drawn Input suppliers are those who provide resources needed for rice production Land Owner rightful owner of the land used in farming

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Metadata - data about the data Millers those who provide the milling service for rice Price - the amount paid in exchange for the commodity or service. Traders - are those who buy and sell goods or commodities. Value is the ratio of price the martket is willing to pay over the cost of production Value analysis function-oriented, structured, multi-disciplinary team approach to solving problems or identifying improvements Concepts and definitions used in the Countrystat report: A. Cash Costs are those which direct cash outlays are incurred such as hired labor, fertilizers and chemicals etc. Seeds/planting materials all types of seeds purchased and paid in cash by the farmer. Fertilizer all grades/types of fertilizers purchased and paid in cash by the farmer.. Pesticides all types of yield-protecting form of chemicals purchased and paid in cash by the farmer. Hired labor service rendered by man or animal or machine or any combination with man-labor which are paid in cash. Irrigation fee payment in cash for irrigation services utilized. Rentals payment in cash for the use of land, machine, animals and tools and equipment, and other farm machineries. Fuel and oil payment in cash for the purchase of gasoline, diesel, oil, grease or kerosene needed for the farming operation.

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Transport costs of inputs- expenditures incurred in transporting farm inputs to the production sites. Land tax- amount of tax paid by the owner-operator for the farm land. Food expenses- cash expenditures incurred in providing food to farm laborers. Repairs- costs incurred for all minor repairs and improvements made on the farm investments. Interest payment on crop loan- payment for the interest on borrowed capital used in the farm production. B. Non-Cash Costs expenditure items which are paid in kind. Valuation is based on the prevailing prices in the community. Generally, these non-cash costs represent the portion of the farmers production that serve as payments to particular factors of production. Seeds/planting materials all types of seeds/planting material used and are home-produced or part of the production. Landlords share portion of farmers production that goes to the owner of farmland (based on the agreed sharing arrangement). Harvester/Threshers share portion of farmers production that serves as payment to farm laborers who perform the harvesting and threshing activities. Hired labor paid in kind portion of farmers production that goes to farm laborers as payment for services rendered in the farm.

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Irrigation fee In kind portion of farmers production that goes to payment for irrigation services utilized. Rentals portion of farmers production that serves as payment for the use of machines, tools and equipment, and other related inputs. C. Imputed Costs do not involve actual outlays in cash or in kind; they represent the costs using own resources in a particular activity and are given by the values of the best alternative uses forgone. Operator/family labor imputed wages as payment to labor contributed by the operator and/or family members. Mandays of labor are valued at prevailing wage rate in the locality. (Applies also for exchange labor) Exchange labor- (bayanihan), work done by farm laborers as payment to the work done by the farm operator/household members outside his own farm. Depreciation cost of wear and tear of farm tools and equipment, machinery and other farm facilities and structures. The straight-line method is used in computing for depreciation where the cost of acquisition is divided by the estimated life span of the farm equipment. Interest on operating capital cost of capital foregone for the purchase of seeds, fertilizers, chemicals and payment of wages for hired labor; this is derived by multiplying the total cash outlays by the prevailing lending rates. Rental value of owned land the rental value of land being cultivated for a specific crop, which concerns owner-operator only. If the farmer cannot

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provide the amount, valuation is done using values/prices existing in the area. D. Total Cost refers to the sum of cash costs, non cash costs and imputed costs. E. Fixed costs are those costs which remain the same regardless of the volume of production. Examples are land tax, lease rentals, interest payment on crop loan, depreciation and rental value of owned land.

3.3 Definition of Symbols Data Flow Diagram Symbols Data flow

external agent

process step by step instructions

data store or database

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4.0 RESULTS AND DISCUSSION 4.1 Rice Cultivation Process Flow The process of cultivation of rice according to the stages of rice production used in the study is shown at Figure 4.1.1. The process and its description are simplified according to the use in the study that gives general background about each process.

Figure 4.1.1 Process Flow of Rice Cultivation The wet stage consists covers the land preparation, irrigation, crop establishment, transplanting, weeding, pest management and fertilizer application. The first three stages can interchange or be done simultaneously. While preparing the land, rice seedlings can be prepared at the nursery until it reached a suitable stage of development before it is transplanted into a paddy field. Land is usually plow or dug. Plowing or tilling the land in the Philippines is either done by a machine or with the help of a farm animal. The paddy filed is tilled into fine mud by removing all weeds and breaking lumps of soil. In establishing the crop, seeds are soaked in water overnight and cooled for about two days for germination. Then the germinated seed are set in the nursery. The seedlings are about

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two to three inches in height in a weeks time. Seedlings can be transplanted after forty days or earlier if it is fully developed (Grist, D.H., 1959). As land preparation and crop establishment are usually done at the same time, plowed land may be left for three or four weeks but can be plowed again before transplanting due to weeds. Seedlings are tied into bundles in preparation for transplanting them into the paddy field. Two to six seedlings are thrust into the mud at distance of about twelve inches. After transplanting, weeding is usually the next process that occurs. It is usually done by hand when weeds are still young and roots are still short. Some weed killers are applied while seeds are still germinating. The process of weeding and pest management depends on the type of weed or pest that is encountered in the area. Leaf bugs, stem borers, beetles, worms are the most common pests in the field. Aside from these, birds, rats and snails greatly affect the yield of rice if not prevented at early stage. Different insecticides are applied to kill these kinds of pests. Generally, fertilizer is applied to increase the yield of paddy. It makes nutrient such as Nitrogen, Phosporus, Potassium iron, manganese, zinc and copper available to the rice plant. Deficiency on a specific nutrient conveys specific signs of abnormality to the plant. Application of fertilizer between upland and low land rice differs due to soil condition. It can be applied after the plant is transplanted into the field or during at the nursery or at both times. The second stage which is the dried stage, refers to the process of harvesting, threshing and drying of rice. Harvesting are usually done using a sickle or with handknives. Threshing are done to separate the grains from the straw. The wet palay are then

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dried either by means of heat of sun or through machine dryer. Drying is necessary to remove moisture and prolong its shelf life for storage. The milled stage consists of processes of storage and milling. If not yet to be used for consumption, it is then transported into a warehouse for storage. Milling of rice is done to separate the rice husk from the grains. The milled rice is considered as the final product. Figure 4.1.2 shows the complete diagram of stages,stakeholders and product used in the study.

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Figure 4.1.2 Value chain of rice supply chain

RICE VALUE CHAIN WET Land owner Farmers Input Supplier Land Preparation Irrigation
Crop establishment

DRIED

MILLED

DISTRIBUTION Wholesaler Retailer Food Processors

Farmers Traders

Miller

Storage Drying Transport Storage

Storage Milling Transport

Distribution Processing Consumption

Transplanting Weeding Pest management

Fertilizer application

Harvesting Threshing

Wet Palay

Dried

Milled Rice

palay

4.2 Costs and stakeholders The different costs associated in the process of rice production and post harvest is listed in Table 4.2.1. These costs are mostly aggregate costs disregarding the process

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utilized. Costs are categorized into three parts: (1) Cash Costs, (2) Non-Cash Costs and (3) Imputed Costs. Table 4.2.1 List of Costs CASH COSTS Seeds Fertilizer Pesticides Hired labor Land tax Rentals Fuel & Oil Interest payment on crop loan Irrigation fee Food expense Repairs NON-CASH COSTS Seeds Fertilizer Pesticides Hired labor in kind Harvesters' share Threshers' share Shellers share Landowner's share Rentals Interest payment on crop loan Irrigation fee IMPUTED COSTS Seeds Fertilizer Pesticides Operator labor Family labor Exchange labor Depreciation Interest on operating capital Rental value of owned land

The Costs are categorized into the three stage of rice production. This analysis would help in identifying the stakeholders involved per cost. The table below summarizes the costs per stakeholder involved. 4.2.2 List of Cost and Stakeholder Stakeholder Land owner Farmer Cost Land Tax Hired Labor Rentals Interest payment on crop loan Irrigation fee Food expense Repairs Harvesters share Stage Wet Wet Wet Wet Wet Wet Wet Wet

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Input Supplier

Trader Miller

Threshers share Landowners share Operator labor Family Labor Exchange Labor Depreciation Interest on operating capital Rental value of owned land Seeds Fertilizer Pesticide Drying cost Transport cost Milling cost

Wet Wet Wet Wet Wet Wet Wet Wet Wet Wet Wet Dried Dried Milled

Fixed costs are summarized at Table 4.2.5 which costs that are attributed to the costs that are constant regardless of the volume of production.

Table 4.2.3 Fixed Costs Fixed Costs Repairs Interest payment on crop loan Depreciation Interest on operating capital Rental Value of Land Land Tax

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Stakeholders considered in the study considers the participation from input supplier, processors, merchants before distributing the product into the market. To summarize the stakeholders involved in each stage, Figure 4.2.3 shows the diagram.

4.2.3 Stakeholders on Stages of Rice Production On the wet stage, the stakeholders involved are the basic source of input in cultivating the rice plant. The landowner plays the role of providing the land particularly paddy field as area for planting. The terms of use of land depends on the agreement between the land owner and the farmer. The input supplier acts as the source of material requirements, excluding labor, in growing the plant. The most important role in the process in rice production is played by the farmer. He provides the labor through manpower or with the help of animal. He manages all the farming method needed for the plant thus all other costs are on his expense. The trader acts as the stakeholder involved in dried stage. Upon buying the wet palay, the transportation of the product to a certain destination is shouldered by the trader. He also takes care of drying to be ready for selling. On the milled stage, the miller is a stakeholder. He processes the product by removing the rice hull to be ready for distribution and consumption. 4.3 Data Collection Procedure The data collection which largely depends on the survey is comprised of stages of procedures. These are divided into three stages namely the Pre-survey Operations, Survey Operations and the Assessment/ Evaluation of the Project. The Figure of Project Cycle is

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shown below. The Project Cycle Activities for Survey Operations are listed at Appendix C. The Stage 1 begins at the planning and organization of materials needed for the study. Research and consultations are also made. At Stage II or the actual Survey Operations, the dissemination of appropriate information about the project is relayed up to Provincial Operation Centers. Data Collection is then done at the field then afterwards filed for editing and coding. The Data are then encoded into the computer and is ready for submission to the Central Office. The data are once again checked at the Central Office. The data are organized into output tables and are reviewed for analysis. A final report regarding the project would be done to be submitted for reproduction. The last stage of the Survey operations for data collection is the assessment or evaluation of the whole project which will get feedback from the output or the activities during the operation.

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STAGE I Pre-Survey Operations

STAGE II Survey Operations

Planning and Organization

Provincial Operations Centers

Central Office

Field Data Collection

Submission of QRES & encoded data

1.Counterediting 2.Data Cleaning

Pre-Survey Consultations

Field Editing/ Coding

Generation of Output Tables

Computer Processing (Data Encoding)

Data Review and Analysis

Report Writing

Finalization/ Reproduction/ Submission & release of final report

STAGE III Assessment/Evaluation of the Project

Figure 4.3.1 The Project Cycle for Survey Operations

There are 16 Regional Operations Centers (ROCs) and 83 Provincial Operations Centers (POCs) throughout the country. They serve as the agricultural information

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resource centers at the regions and in the provinces, respectively. They are the one in charge in the distribution and gathering of information on conducting surveys. TheROCs exercise technical and administrative supervision and coordination of all activities and personnel of the POCs in their respective areas of jurisdiction; extend technical assistance to end-users at the regional level in accessing and analyzing agriculture and fishery information; and assume responsibility for the maintenance of the NIN at the regional level, once it becomes operational.The POCs implement all statistical activities of the BAS; compile, organize and maintain up-to-date data on agriculture and fisheries sectors for the province; assist local end-users in accessing and analyzing agriculture and fishery information; and maintain the NIN at the provincial level, once it becomes operational.

Integration of Data The Countrystats site administrator or webmaster, namely Mr. Jing B. Jalisan, is responsible for the websites maintenance. The webmaster and his team manage the systems condition. However, each division is required to submit reports of updates on necessary facts and figures. The list of these divisions are shown at Appendix C. The schedule of submission is given and deadline for posting can be viewed under Countrystats Calendar page. Each of the division has designated data to be submitted on a deadline. The necessary data would be saved in a Folder in the Shared Drive. These data would be consolidated by the Countrystat web team for review before posting.

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Figure 4.4.2 Calendar Page of CountryStat 4.4 Database The application was programmed using html tools Macromedia Dreamweaver 8.0 and myadminPhp. The interface using the Dreamweaver enables to direct the user to a flow but still allows user to freely navigate in the application. The database linked to the interface used myadminphp.The data are stored in the database is accessible only to the database personnel in which he can manages the data system. In case there is new information to be stored, he can update data by importing data into the dtabase. 4.4.1 Data Flow Diagrams To illustrate the flow of information in the study, Data Flow Diagrams are used. In the Context Diagram shown at Figure 5.2.1, Countrystat receives data from DA Offices and other government agencies. Different Division of DA Offices are assigned to submit updates of facts and figures to the webmaster of Countrystat. Government agencies are also sent request for data whenever necessary. National Statistics Office

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(NSO), National Food Authority (NFA), Department of Labor and Employment (DOLE) are some of these few agencies. The End User, upon entering the website, can explore and get information he needs. User can download the data in different format such as Microsoft Excel, pdf or text file. On the other hand, the Energy Audit Database requires the Cost and Returns of Rice Production to be able to achieve Value Analysis Results.

Value Analysis Results

CRS for Rice Production

0 Value analysis database

End User

Countrystat
Request for Data

Request for Data

Other Costs NFA, Rice millers

Figure 4.4.1.1 Context Diagram of Countrystat and Value analysis Database

The Energy Audit Database consists mainly of three processes: (1) Log-In , (2) Searching and Selection, and (3) Conversion and Computation. After these processes the new information which is the value analysis results is displayed and stored into the database. The data flow is shown below at Figure 5.2.2.

34 Costs, Prices Value Analysis Results

Year, Location 1 Account info Log-in

2 Search

3 Computation And presentation

value Database

Value Analysis Results

Figure 4.4.1.2 Diagram 1 of Value analysis Database

Figure 4.4.1.2 illustrates the information flow involved at the Log-in process. An account which should have a User name and Password is required to enter the program. Once given, the Log-In information such as the User name, Password and Log-in Time and Date, would be stored in the Log-in Database for references of user. The user can also proceed to use the application. Upon entering the program, the Search function provides the user to look for previous data or analysis at a specific Location and Year. The application will look into previous records and if found, the Search Results will be displayed. If not, the user has the option to make new Value Analysis. The diagram at Figure 4.4.1.3 shows the information process flow.

35 CRS costs,prices Location 2.1 Year Look in Database 2.2 Display partial results

Costs , prices

Figure 4.4.1.3 Child Diagram of Search

As shown at Figure 4.4.1.4, the value analysis function of the program comprises computation of value using formula price over cost. The costs from Countrystat, prices of rice are stored together. Once the user need a value analysis of a certain Location and Year, computation of value are done through the codes incripted at the program. Afterwards, the results would be displayed and stored into the database program.

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CRS for Rice Production 3.1 Computation of value Value results

Price

Value Database 3.2 Display results in table and graph

Value results

Value results

Figure 4.4.1.4 Child Diagram of Conversion and Computation

4.5 Building the Application 4.5.1 System Requirements In order to build the application, there are certain things to be considered. a. Software application This refers to the programming language appropriate to use in programming. In making the interfaces, Macromedia Dreamweaver 8.0 was used. Localhost myphpadmin was used for the database and my sql add-in for the link in importing data. b. Use of Computer The use of computer is necessary to do the programming and the actual use of application. The study is dependent on the use of computer. Although not

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necessarily advanced, the computer specifications must also be up to date. The application is compatible to Windows XP, or Windows 7.0 . 4.5.2 Maintenance of the System

The value analysis database is dependent on the information available on Countrystat. Therefore, updating the data particularly the prices and costs should always be maintained. An exclusive access for the database personnel was made to be able to easily update the information at the database. He should also be knowledgeable in SQL programming to be able to properly handle the system. He is in charge of importing new files, editing and organizing data from time to time. 4.5.3 Interface and Functions

The value analysis database has user-friendly interfaces designed for end user. The database personnel has also link to access and manage the database.

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Figure 4.5.3.1 Log-In Interface

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Figure 4.5.3.2 Create Account Interface

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Figure 4.5.3.3 Value Analysis and Stakeholders Distribution of Cost Interface

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Figure 4.5.3.4 Database Maintenance Interface

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4.6 Computation and Analysis of Output As discussed previously, there are three types of output presented in the program. The summary of formulas used for the first output which is the computation of value is presented at the table below.

Table 4.6.1 Formula used for computation of value Stages of Rice

Wet Dried Milled

Given that: Cost of producing dried palay* = cost of buying wet palay + dried stage cost Cost of Producing milled rice** = cost of buying dried palay + milled stage cost

The prices of wet, dried and milled rice are also sourced from countrystat. The cost used in each stage is accumulated from the first stage. The cost of producing dried palay is equivalent to cost of producing wet palay plus the additional cost involved in the second stage. Same as the cost in producing milled rice is the sum of the costs of wet and dried stage plus the milled stage costs. The second output which involves the stakeholders share of cost by presenting the percentage distribution. The computation is a simple percentage formula: % share = (Stakeholders total cost / Total stakeholders cost) x 100

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Table 4.6.2 Percentage Share of stakeholders Stages of Rice

Wet Dried Milled

Landowners share

Traders share

Millers share

Farmers share Input supplier

4.6.1 Output of database progam Value Analysis At output 1 of the program, the value analysis in form of table and graph is shown. The variables needed for the computation of value are shown in a table such as total cost, cost per kilogram, price and value.The graph shows the value progression of rice according to wet, dried and milled stage. There are different data on each year and location, giving each equivalent unique of value. These values are to be compared to show the performance of rice. Different location may give different set of values, as the study wants to imply, pertaining to different allocation or use of technological developments on rice production. Since the value is used as an indicator of effectiveness of technological improvements made in a particular area, the difference on values between two locations can imply whether allocation of these programs are equally distributed throughout the country. As Agri-Pinoy Rice Program aims sefl-sufficiency in every region, value must be equal to those with high value.

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The majority of the cost are on the first stage of production. Compared to the three different prices, the price of wet palay is usually the least. But since the formula is not aggregate cost, value on wet stage connot be generally said to be the lowest. On the second stage, dried palay has a little increase in price and addtional cost in drying and transport. At milled stage, the milling cost is the only addition to the cost of buying dried palay. On each run of the program, comparison can be made per location or per year. In this study, it is hypothesized that the value of rice differs on each location. Given on a particular location but different year, the set of values on rice stages can be compared to show whether there is improvement on a particular area as time progresses. The database program is set to show the difference in value that indicates improvement or change in status of rice production.Sample run are made in order to test the hypothesis on both scenarios. First is whether the value on different locations in the country are equal and secondly whether there is increase in value in a particular area implicating significant development. Stakeholders distribution of cost After identifying the stakeholders involved in the process, their share of costs is shown in a table. Land owner, farmer, input supplier, traders and millers are the stakeholders considered in the study. With this perspective, the user can easily identify not only the costs but the people involved in the process. It also shows the participation of stakeholders based on their percentage distribution.Most of the burden of costs are within the farmers end while others have minimal yet plays impontant role. The policy makers can encorage projects benefiting stakeholders most importantly the farmers.

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5.0 SUMMARY AND CONCLUSION Transforming data into a new set of information more understandable for stakeholders and policymakers in order to make other use of data. This will be beneficial not only to farmers but to all of the workers involved in the rice industry and as well as the consumers. The effectiveness of improvement of Agri Pinoy Rice Projects are measured through value analysis. The database program using the data from the CountryStat website are manipulated and transformed three output set of output namely (1) value analysis and (2) stakeholders distribution of cost. Using this application, the end user would be able to see the use of statistical indicators in different perspective. These indicators help identify critical points in the process that are areas for improvement. Comparison of set of values from different location and year also gives different perspective

6.0 RECOMMENDATION The database program provides effiecient way of using information that are already available on government agencies. These are beneficial not only to researchers but to stakeholders and policy makers such as Deaprtment of Agriculture by analyzing their erformance in the production system. The fuctionality and interfaces of the program is set for easy use but nonetheless functional.

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7.0 AREAS FOR FURTHER STUDIES There are several areas that can be furthered study having the same intention of using available data into new set of data. Other crops may be considered as subject using the same analysis made in the application. Other studies regarding data manipulation are expected to arise in the future. Although the application is built as a separate program, but this can be link to the Countrystat website for further studies. This will be easier for others to view and will help make further evaluation.

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8.0 REFERENCES

Benaning, M. Searca study on per-capita consumption of rice crucial in food-sufficiency drive. March 5,2014. Retrieved from http://www.businessmirror.com.ph/index.php/en/business/agri-commodities/12215searca-study-on-per-capita-consumption-of-rice-crucial-in-food-sufficiency-drive.

Efferson, John Norman. (1952). The Production and Marketing of Rice. New Orleans, Louisiana: Simmons Press

Grist, D.H., (1959). Rice (3rd ed). Great Britain: Western Printing Services Ltd Bristol

Juliano, B. (1993). Rice in Human Nutrition., Biochemistry Unit Plant Breeding, Genetics and Biochem Division. International Rice Research Institute.

Project Development Procedures Manual. Chapter19 Value analysis. Draft. Division of Design, Office of special Projects, California Department of Transportation, Sacramento, Sep. 2002. 32pp.

Rich,N. , Holweg, M, Value engineering value analysis. 2000 Lean Enterprise Research Centre Cardi f f , U n i ted Kingdom

The Philipines Recommends For Rice Postproduction Operations. Phils Recommends

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Series No 63-A, PCCARD, BPRE, PARRF. Los Baos Laguna. 2001, 189 p.

Tidd,J. and Bessant, J.(2005) Managing Innovation.

Web tool helps raise rice yield and income. Nov 27 2013. Retrieved from www.irri.org.

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9.0 APPENDICES APPENDIX A Specific interventions provided by the Agri-Pinoy Rice Program are as follows: A. Production support

Production of Breeder Seeds of Inbred and Nucleus/Breeder Seeds of Hybrid Parentals Basic Breeder Seed Production Seed Production of varieties for climate change adaptation/mitigation; Including varieties that are submergence-tolerant, drought-tolerant/early maturing, salinetolerant, and cool-elevated Upland Rice Production Development Establishment of Community Seed Banks; including rehabilitation and establishment, distribution of simple seed processing equipment; and locally adopted starter seeds Support to RIARC Development and Activation, including production and distribution of registered seeds, and purification and multiplication of traditional and locally adopted varieties Disaster Response like buffer seed stocking and provision of insurance coverage Establishment of pest outbreak control measures like bactericides, insecticides, fungicides, rodenticides, and light traps Cloud seeding operations on vulnerable regions Distribution of fertilizers for rationing Establishment of agro-meteorological (agro-met) stations per major rice district Establishment and maintenance of Multi-Purpose Bio-Organic Fertilizer Plants Conduct of pest and diseases surveillance/SEWS in clustered areas to determine and prevent pest occurrence; and strengthening of pest surveillance teams Establishment of community-based bio-control agent laboratories, including upgrading of technical capabilities of bio-control laboratories Promotion of nutrient management tools as aid in formulation of SSNM options and varieties Support to soil laboratories and establishment of mobile soil clinics Distribution of farm and fishery production-related machinery and equipment such as: Rice Drum Seeders, Rice Transplanters, Mini four-wheel drive tractors, Rice Hull Carbonizers, and Hand Tractors

B. Irrigation Development Services

Support to activities of the National Irrigation Administration, an attached agency of the Department of Agriculture, in restoration, rehabilitation, and generation activities of irrigation systems and their service areas.

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Provision of Small Scale Irrigation Projects in rice cluster areas to ensure that major waterways are functional to achieve high irrigation efficiency Operating, monitoring, and evaluation of irrigable areas or service areas expanded through restoration, rehabilitation, and construction of Small Water Impounding Projects, Diversion Dams, and Small Farm Reservoirs

C. Other Infrastructure and Postharvest Development Services

Distribution of postharvest equipment and machinery, such as net/laminated sacks, construction and rehabilitation of flatbed dryers, mechanical dryers, bag closers/baggers, threshers, combine harvesters, rice cutter/harvesters, shredders, moisture meters Construction and rehabilitation of palay sheds and warehouses, and multi-purpose drying pavements, Construction and operationalization of Rice Processing Complexes, and villagetype grain postharvest processing centers, Provision, rehabilitation and retrofitting of biomass furnace to existing recirculating dryers Validation of farm-to-market roads (FMRs)

D. Market Development Services

Market Promotion and Development, consisting of the establishment of Seed Trading Centers and e-Trading centers, and holding of agri-business investment clinics, market matching, and trade fairs Generation, periodic updating and dissemination of regional rice statistics and market information such as inflow and outflow, demand and supply, palay and milled rice prices, basic rice statistics (effective rice area, area planted & harvested, production, yield per hectare, sufficiency), input suppliers, millers, etc., supply chain and cost structure analysis, price monitoring, and updating of cost structure, stakeholders directory, market profiles, and rice value-added products Establishing linkages with public and private financial institutions, NGOs, and agri-business entities

E. Extension Support, Education and Training Services

Conduct of trainings and training-related events for farmers such as technology transfers, schools-on-the air, Farmers' Field Day, sustainable agriculture practices, Palay Check, Palayamanan, and other social mobilization activities Conduct of technology demonstrations (Techno-Demo) such as varietal TD, compact hybrid/cluster, community-based MRC, LSTD, abiotic stress environments, etc.

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Promotion and showcase of environment-friendly technologies adaptable to organic production Technology commercialization for ratooned rice, upland, submergence, and saline rice varieties Technology updating and re-tooling of agricultural extension workers (AEWs) and farmer technicians by conducting specialized trainings Provision of logistical support to LGU Extension Workers and para-technicians, Organization and strengthening of Irrigators Associations (IAs) and farmers' organizations by forming and mobilizing clusters and conducting technical briefings Engages in intensive information dissemination campaigns by distributing IEC materials such as newsletters, posters, brochures, handouts, flipcharts, billboards and streamers; print, radio and television campaigns; information caravans; schools-on-the-air, and other related activities.

F. Research and Development Services

Adopts research and development activities on new rice technologies, such as researcher and farmer-managed adaptability trials for new hybrids and inbred certified seeds; screening, selection and commercialization of special rice varieties like organic and biotic-stress resistant; assessment and validation of soil fertility of rice clusters for organic rice production; Promotion and adoption of technology on controlled irrigation, irrigated and rainfed rice systems Collection of germplasm for indigenous vegetables, rootcrops, and native staples in support to Integrated Farming Systems " Conduct of climate change mitigation and verification studies Research and provision of assistance on the commercialization of organic fertilizers Upgrading of research facilities Support to the research and development programs of the Philippine Rice Research Institute (PhilRice) Specific policy-oriented activities of the Agri-Pinoy Rice Program include:

Policy review and technical updates;

Generation of nationwide rice statistics from national surveys and other statistical activities; planning and monitoring of program activities and interventions; Conduct of quarterly program reviews from provincial and regional data; Holding of coordination meetings with stakeholders; Conduct of regular operational and program monitoring and evaluation activities to determine program implementation and delivery of services; Support to the establishment of a National Rice Council;

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And support to regional rice action teams.

APPENDIX B I 1.

Project Cycle Activities for Survey Operations

Pre-planning Preparation of Project Proposal a. Review and evaluation of previous survey activity b. Drafting of a new plan 2. Approval of the proposal II Planning and Organization 1. Creation of Implementation Team including a teambuiding activity 2. Preparation of Survey Deasign and Instruments 3. Pre-survey consultations Consultation/Training: RASOs/PASOs (during NM CM) 4. Preparation of Dummy Tables and Specifications 5. Pre-Test of Survey Forms and Manuals 6. Finalization of Survey Forms and Manuals 7. Development of Computer Processing Programs for the following: a. Data Entry b. Data Processing c. Error-listing/Validation d. Microdata file 8. Testing of Computer Processing Programs at the Central Office 9. Finalization of Computer Processing Programs III Field Trainings and Workshop 1. Conduct of trainings (Final ManOps. Editing Guidelines. Computer Proceeding) a. 1st level training: C. O. Trainers Training b. . 2nd level Training: POC staff and CDCs IV Field Survey Operations 1. Field data collection to include spot-checking and back-checking activities 2. Editing/Coding of Survey 3. Computer Processing 4. Submission to C.O. a. Sort copy of data files b. Edited Questionnaires V Generalization of output tables 1. Counter-editing, cleaning and updating of encoded data files 2. Test-run 3. Table generation VI Data review and Analysis 1. Data tables 2. Household level review VII Report writing

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VIII IX X

Presentation of report Finalization, reproduction and submission of reports Preparation of Technical Documentation Report

APPENDIX C List of BAS Divisions a. Agricultural Accounts and Statistical Indicators Division (AASID) AASID is incharge of the development and maintenance of statistical frameworks that will enhance the preparation of an integrated system of agricultural and fisheries statistics and the generation of socio-economic statistics in the agriculture and fisheries sector. b. Crops Statistics Division (CSD) CSD is responsible for the organization, review and analysis of crop production and production-related data as well as the timely release of crop statistics. c. Livestock and Poultry Statistics Division (LPSD) LPSD is responsible for the organization, review and analysis of livestock and poultry production data as well as the timely release of livestock and poultry statistics. d. Fisheries Statistics Division (FSD) FSD is responsible for the organization, review and analysis of fisheries production data as well as the timely release of fisheries statistics. e. Agricultural Marketing Statistics Analysis Division (AMSAD) AMSAD is responsible for the organization, review and analysis of agricultural marketing and market-related data, as well as the timely release of agricultural marketing statistics. f. Statistical Methods and Research Division (SMRD) SMRD is responsible for research and development and implementation of statistical methods to support the needs of the technical divisions by developing and improving survey designs and instruments, maintaining up-to-date sampling frames, planning and programming all survey operations, and developing and maintaining statistical standards and classification systems. g. Statistical Operations Coordination Division (SOCD) SOCD is responsible for the promotion of an effective and efficient operationalization and administration of the different statistical activities. h. Information and Communications Technology Division (ICTD) ICTD is responsible for the planning, implementation and maintenance of IT services to all organic units of BAS and for the packaging, publication and release of statistical reports and other related information on the agriculture and fisheries sectors. It will also assume the tasks of providing data for the DA's National Information Network, once it becomes operational. APPENDIX D Structured English Process 1.0 Log-In

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DO Ask for User Information (User Name, Password) Check for existing account If User has Account Enter the Program Else Create New account END Process 2.0 Searching and Selection DO Ask for Search Information ( Location, Year ) Locate existing analysis If Located Display Value Analyis Results Else Display File not Found. END Process 3.0 Computation DO Compute for Value Value = Price / Cost (Value Analysis Results, Price, Cost) Display Total Cost, Cost per Kilo, Price, Value Display Graph Compute for Stakeholders cost Share % = (Stakeholders share / Total stakeholders share) x 100 Display Table of stakeholders cost END Process 4.0 Creating New account DO Ask for necessary Information (Name, Password, email , age, Occupation, purpose) Save information END

APPENDIX E. Codes