CHAPTER 3

TECHNICAL STUDY

3.1 Objective of the Study

 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 layout of the business;

 to determine the supplies needed and all necessary machineries

and equipments to be used in the operation of the business,

3.2 Product

3.2.1 Description of the Product

Crispy’s Fish Skin Chicharonnes sells instant snack-type fast

food, fish skin chicharon in a pouch with packed vinegar, to be

consumed while watching movies, having snack during break time at

school, and as a pasalubong to your loved ones.

3.2.2 The Economic uses of the Product

The product will be used for the fulfillment of the main objective of

the business – the possible generating of profit and giving our best effort to

satisfy the customer’s needs and wants in terms of products and services

offered to customers. This will be attained through proper business

operation and cooperation among the personnel of the business. All will

be done to satisfy every customer who will patronize the business. The

successful implementation of such activities will help the business to further

improve as an entity and develop its operational functions to attract more

customers in the future.

3.3 Manufacturing Process

Crispy’s Fish Skin Chicharonnes Ingredients:

Fish skin ( Salmon skin)

Salt and Pepper to taste

oil for deep frying

vinegar

Crispy’s Fish Skin Chicharonnes Cooking Procedure:

1. Wash the Fish skin very well and drain the water.

2. After draining the fish skin put salt and pepper to taste then dry under

the heat of the sun for an hour or two.

3. Deep fry until golden brown and crispy.

4. Packaging.

3.3.1 Description of the Process

 1. Purchasing of Ingredients.

2. Preparation of ingredients.

3. Cooking of chicharon.

4. Checking of Products.

5. Packaging.

3.4 Production Schedules

The Cripy’s Fish Skin Chicharonnes store opens at 9:00 am

upto 9:00 pm. The employees assigned for opening of the store should

there one hour before the production. The production will start at 10:00

am upto 8:00 pm (with lunch break and afternoon break). A total of 10

working hours.

3.4.1 The Daily and Annual Production Capacity of the Plant or Factory

Production Capacity (in pouches) = (Capacity in hours × 60 ÷ product

SAM) × line efficiency

Daily Production Capacity:

Production Capacity = (2,000 × 60 ÷ 50) × 50% pouches

Production Capacity = 1,200 pouches

Annual Production Capacity (313 working days):

Production Capacity = (626,000 × 60 ÷ 50) × 50% pouches

Production Capacity = 375,600 pouches

3.4.2 Days per year shall be the Projected Operate

The store is open from Monday to Saturday. Sundays are

considered day-off or rest day.

Where 313 days: 299 – ordinary working days

11 – Regular holidays

3 – Special days

313 – Total number of working days in a year

3.4.3 The Factors use in Determining Plant Size are:

1. The location of the plant;

2. the area capacity of the site;

3. the size of the location;

4. the plant lay-out that must be suited to the site; and

5. the area of waste disposal.

3.4.4 The Expected Attainable Production Volume for the next two years

Considering Start-up Technical Factors

The projected volume of annual production is 375,608

pouches and in the second year the production volume is 469,500

pouches of the projected volume, a total of 845,100 pouches for

the next two years.

3.5 MACHINERY AND EQUIPMENTS

Kitchen Equipments

Items Quantity Unit Total

Price Price

Exhaust 2 599.00 1,198.00

fan

Gas stove 4 2,499.00 9,996.00

 Kitchen 8 1,765.00 14,120.00

Table

Kitchen

Cabinet
2 4,065.00 8,130.00

Kitchen 3 3,575.00 10,725.00

Sink

Frying pan 16 505.75 8,092.00

Spatula 16 199.00 3,184.00

Total of Kitchen Equipment 55,445.00

Office Equipments

Unit Total
Items Quantity
Price Price

Office Table 1 2,450.00 2,450.00

Swivel Office
5 675.00 3,375.00
Chair

Computer Set 1 4,645.00 4,645.00

Telephone 1 300.00 300.00

Total of Office Equipments 10,770.00

3.6 Plant Location

Crispy’s Fish Skin Chicharonnes store is located along Mabini

Avenue near Alegro Hotel.

3.7 Plant Size and Layout

3.7.1 Plant Layout

3.7.2 The Effect of the Layout on Materials Flow and the Treatment of

Material Handling

The layout ensures optimum utilization of men, materials, equipment

and space available. And provides flexibility of layout for future changes

and requirements.
3.7.3 Provision for Expansion

When the business is fully established and achieved a high

amount of sales, the total net profit for the year will be used to provide the

expenses for the expansion of the business.