Raw Materials

a. Specifications or description (physical and chemical)

b. Proof of reliability and superiority of the raw
materials, and tests made
c. Atlernative raw materials considered factors used in
selecting the raw materials, and tests made
d. Raw materials used in other plants in the US, and in
other countries; new raw materials being studied or
developed
e. Quantity required every year; materials
f. Availability, continuity of supply (specially in case
of imported materials). Current and prospective
sources, and transportation
g. Suppliers reliability, and arrangements as to delivery
and payments.
h. Mineral reserves (as for cement) adequacy of technical
studies on the extent of deposits, and quality
i. Current and prospective costs of raw materials, terms
of any long-term contracts

Chapter 3 TECHNICAL ASPECT The technical study discusses how the products are to be
produced, when these products are to be produced, how much will it cost to produce the
products, where to produce the products and what technology to be used.
19. Production Process/Process Flow The production process discusses how the products
will be produced, specifying each step that will be involved, and the time involved. Production
Process/Process Flow the production process discusses how the products will be
produced, specifying each step that will be involved, and the time involved. The said steps
will be shown in a process flow chart where some of the following symbols will be used.
20. Transportation Storage Operation Inspection Delay Equipment, Machinery, Furniture and
Fixtures this part discusses or describes the technology that will be used manual,
mechanical, automated, or robotics. If production process is done manually, then the use of
equipment, machinery, furniture and fixture will be limited. However, the student will still make
a list of all the
21. the needed equipment, and other facilities. The list should include the description, the
specification, and the prices of the listed assets. If it is mechanical, automated, or robotics,
the student will also do the same. Building The student should determine whether it is
necessary to put up, to rent, or to lease a building. If a building is to be constructed, he
should provide a computation for the cost of the building. This includes the determination of
the life of the building as well as the depreciation method to be used.
22. If the students proposes to rent a building, he should determine the historical and the
current rent so that he will be able to project the rentals. When it is necessary to renovate the
building to fit the requirements of the production process, the cost of renovation should
likewise be included. Location - the student is required to gather maps in order to show
where the proposed project will be located. In the discussion, the student should also
describe the distance of the proposed project from its competitors as well as its supply of raw
materials, public markets, roads, communication facilities. He need to discuss also the
environmental conditions of the place whether it be rural, urban, or near schools,

23. Layout/Floor Plan This topic specifically discusses how the place (factory, store, or
office) looks like and how it is arranged. It is recommended that the student presents the
drawings including dimensions so that readers could easily visualize how the proposed
venture will be. Layout/Floor Plan this topic specifically discusses how the place ( factory,
store or office) looks like and how it is arranged. It is recommended that the student presents
the
24. drawings including dimensions so that readers could easily visualize how the proposed
venture will be. Capacity/Scheduling The student, after describing the location, layout,
building, equipment, machineries, furniture and fixture can now discuss its capacity. He
should be able to determine the maximum capacity, the production schedule, the number of
shifts per day, number of working hours per day, etc. Waste Disposal there are some
processes that produce unhealthful wastes. Here, the student should discuss how to dispose
the wastes and also the cost of disposing.
25. Utilities and Other Operating Costs this part describes the amount, cost, and sources of
utilities-fuel, water, and electricity. It also includes other costs that the proposed project will
incur like supplies, telephone, telex, maintenance, repairs, insurance, taxes, licenses, and
SSS contribution. The provision foreseen costs such as miscellaneous cost and
contingencies is also included. Production Costs it includes the initial raw material costs,
labor costs, operating costs, and other costs, and other costs to produce the product.

Machinery (major, and auxiliary as transport, materials

handling, and standby units)
a. Specifications and functions; rated capacities and
balancing, engineering firm which prepared the
specifications
b. Availability of spare parts and repair services
c. Selection of supplier, including bidding procedures, and
evaluation of bids
d. Quotations from suppliers
e. Reliability of the suppliers and machinery guarantees
f. Delivery, payments, and other arrangements with suppliers

Material Handling is the field concerned with solving the pragmatic problems involving the
movement, storage in a manufacturing plant or warehouse, control and protection of materials,
goods and products throughout the processes of cleaning, preparation, manufacturing, distribution,
consumption and disposal of all related materials, goods and their packaging. [1] The focus of studies
of Material Handling course work is on the methods, mechanical equipment, systems and related
controls used to achieve these functions. The material handling industry manufactures and
distributes the equipment and services required to implement material handling systems, from
obtaining, locally processing and shippingraw materials to utilization of industrial feedstocks in
industrial manufacturing processes. Material handling systems range from simple pallet rack and
shelving projects, to complex conveyor belt and Automated Storage and Retrieval Systems(AS/RS);
from mining and drilling equipment to custom built barley malt drying rooms in breweries. Material
handling can also consist of sorting and picking, as well as automatic guided vehicles.[2]

How to Reduce Material Handling Costs

The key to reducing material-handling costs in any business is to put the right material where it's needed,
when it's needed and how it's needed. Such costs can be cut by decreasing the number of times

employees must touch the material, reducing the time and distance it travels, paring equipment costs,
avoiding damage and boosting storage capacity. Ultimately, controlling material-handling costs increases
productivity and brings a company more profit.

Reduce Touch Labor

The best way to increase employee productivity and profit is to reduce the number of times
a worker is required to handle material. Material handling doesn't create value production
does. Every minute spent moving, sorting, preparing or storing material equates to lost
productivity. Material handling can be greatly reduced by delivering as many materials as
possible directly to the production floor. For example, vendor-managed inventory can
eliminate the need for receiving, inspection, sorting or storing materials.

Optimize Material Flow

When materials move through production, it's important for this path to be as short as
possible. Time spent transporting materials to and from different operations on the assembly
floor is time not spent in production. Set up a straight line for materials to travel from
inventory receipt through kitting, assembly, test and shipping with little or no
backtracking. This can greatly reduce manufacturing time and increase earnings.

Prevent Damage
Damaged material equals lost profit. Proper storage procedures including monitoring shelf
life, temperature and moisture levels can ensure products will be usable. Documenting
appropriate handling procedures to avoid breakage, providing adequate tools and
equipment for handling, and continuous employee training also help reduce damage.

Increase Storage Capacity

Because real estate is expensive to buy and maintain, every inch of storage space should be
used to capacity. Packing a warehouse with supplies should resemble filling a cube from
side-to-side and top-to-bottom. All available horizontal and vertical space should be filled
and organized before adding more space. This will bring the greatest value per square inch
to every dollar spent in warehouse costs.

Deploy Equipment
Material-handling costs can be reduced by deploying the right equipment in the right places.
Take advantage of gravity-fed movement before adding power-driven equipment, by
installing gravity conveyors, chutes and slide lines. Using capital equipment like a forklift
should be reviewed in combination with alternatives such as pallet jacks to determine if less
expensive equipment can perform the required tasks. Each piece of machinery should be
evaluated to calculate its return on investment before purchase. This will help a company

determine the point when the machine will pay for itself by decreasing material-handling
costs.

It covers the costs of purchasing, receiving, handling and storing materials and any desired
profit margin on the materials themselves. It is expressed as a % of the total estimated costs of
parts and materials for the year.