CHAPTER III

TECHNICAL FEASIBILITY
A. THE PRODUCTS
The products of the project are different wood furniture such as sala
sets, dining sets, beds, cabinets and many others. These products will
be sold to customers in Calbayog City and Nationwide.
B. MANUFACTURING PROCESS
The making of wood furniture is presented by the following diagram.
INPUT

MANUFACTURING

OUT PUTS

CUTTING & MOLDING

FRESH &
MATURE

COMPONENT

FINISHED
PRODUCTS

ASSEMBLING OF PARTS

Phase 1 (Receiving of Timber)

Timber taken from our storage area will be checked and measure to
ensure sizes and moisture content is within requirements.

Each bundle is documented and release to production floor for

processing.

Phase 2 (Cutting & Molding)

Selecting from the received timber bundle, each piece of timber is

carefully cross cut into lengths required.

Cut timber is then bundled on pallets, which is then processed at our

molding section to achieve the shapes and sizes required.

Documentation and identification of each bundle is properly done here

to ensure chain of custody procedure is followed.

Phase 3 (Component Fabrication)

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Molded timber is processes by different machines depending on its

shape and design to acquire its features.

These components are then carefully sanded to round all sharp edges
and smoothen out all surfaces.

Phase 4 (Assembly)

Each components will be assembled accordingly to form the part of the

intended furniture.

Joints are glued together to form a strong bond. Assembled parts are
then stacked together and labeled for traceability.

Phase 5 (Finishing & Packing)

Assembled parts are dipped in teak oil and wiped dry to achieve the
brown/teak finishing.

Teak oil acts as repellent of wood destroying insects, fungicide, as well

as providing some weather and UV resistants to the wood.

These parts are left for a period of time for the teak oil to cure and dry.
They are inspected again before being packed into carton boxes.

Phase 6 (Delivery)
A. Finished products will be loaded into containers according to
customer's order.
B. These containers are then shipped out to our customers from all
around the world.
C. MACHINERY AND EQUIPMENT

NO DESCRIPTION UNIT
APPLICATION
1.Material Preparation Section
Precision Band
01
1 Longitudinal cut mainly
Saw
Precision built saw-head
Rip
Saw
02
1 assembly assures absolute
straight line operations
03 Multiple Rip Saw

Great throat capacity: 760mm,

multiple straight line ripping
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NO DESCRIPTION UNIT
2.Fine Working Section
01 Hand Jointer
2
Auto. Single
02
1
Planer
Single Spindle
03
1
Shaper
Double Side
04
1
Planer

APPLICATION
Planning surface, manual feed
Auto. Planning on single side
surface
Profiles molding and shaping

Planning surface on double

sides
STD with 6 spindles, planning
4-Side Molding
05
1 and molding on four sides
M/ C
surface
Squaring, tenoning and
Double End
06
1 molding for double sided
Tenoner
edges
3.Lumber Assembly Section
Finger cutting trimming and
01 Finger Shaper
1
sizing in one pass
Finger
Finger assembly up to 4500
02
1
Assembler
mm, manual feed
Pneumatic
Clamping stocks firmly by
03 Semi-Auto.
1 supplying pneumatic power to
Clamp Carrier
air wrench tightener
4.Boring Section
01

Vertical Boring
M/C

02

Horizontal
Boring M/C

03

Multi-spindle
Boring M/C

04

Hollow Chisel
Mortiser

Triangular
Tenoner
5.Sanding Section
01 Wide Belt
05

1
1

Adjustable central distance,

STD with 20 spindles vertically
Horizontal micro adjustable for
drilling head, with 2 hold down
clamps
32 mm central distance, STD
with 3 rows of 21 spindles, I
row horizontally + 2 rows
vertically
With single spindle, manual
feed, chisel hollow mortise for
jointing
Tenoning triangular holes for
jointing with 8 knives per 1 row
Sanding wood surface

13

NO DESCRIPTION UNIT
APPLICATION
Sander
Wide Belt
Sanding wood finish for based
02
1
Sander
painting
Vertical
Sand belt vibrate for sanding
03
2
Vibrating
various bevel edges
Double Side
Sanding curve or irregular
04 Sponge Drum
2
contour work-pieces
Sander
6.Painting Section
Spray Water
01
2 Water booth for spraying paint
Booth
Paint Stirring
Tank for stirring paint by
02
5
Pressure Tank
pneumatic pressure
Paint Spraying
03
10 Spraying gun for painting
Gun
7.Other Equipment Section
Profile Tool
Grinding for profile cutter,
01
1
Grinder
planner knife and router bits
Tool Grinding
Grinding for saw-blade, carbide
02
1
M/C
cutter and router bits
Collecting the sawdust,
03 Dust Collector
2 shaving and sanding dust in
wood working
Collecting the sawdust,
04 Dust Collector
3 shaving and sanding dust in
wood working
Collecting the sawdust,
05 Dust Collector
4 shaving and sanding dust in
wood working
06 Air Compressor
1 compressed air supply
07 Air Compressor
2 compressed air supply
D. PLANT LOCATION
The proposed location of the project is at Brgy. Rawis, Calbayog City. It
is very accessible to transportation which would facilitate the delivery of both
materials and finished products. The proximity of the project site to the city
is, likewise, favourable to the workers which will be hired by the project.

E. PLANT LAY-OUT
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1st floor

INPUT

CUTTING
&
MOLDING

ASSEMBLING
OF
PARTS

COMPONENT
FABRICATION

FINISHING &
PACKING

STORAGE ROOM

STORE
2nd floor

PRESIDENT

HUMAN
RESOURCE
DEPARTMENT

ACCOUNTING
DEPARTMENT

SALES
DEPARTMENT

CUSTOMER RELATION
DEPARTMENT

LOUNGE AREA

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F. BUILDING AND FACILITIES

The building shall be constructed along the highway using concrete
and steel materials for durability. The flooring shall be cemented to facilitate
the manufacturing process and the work flow during production. The building
is estimated to cost about 4,590,000 million
G. RAW MATERIALS AND SUPPLY
The supply of lumbers and timbers for tying comes mainly from the
farms of Calbayog City and Gandara, Samar. Raw material wood is easily
available from the forest reserve which comprise of almost 42% of the area.
Other material used in the furniture manufacturing process is nails, screws,
glue/solution, spirit, thinner, lacquer, sealer, hardener, etc. These raw
materials are easily available in the market.
H. UTILITIES
The office and working area of the project shall be provided with
electricity, water and telephone facilities.
I. WASTE DISPOSAL
The waste materials of the project are composed mainly of saw dusts
that are in excess in the making of wood furnitures.
These waste materials shall be collected everyday and laced in a large
compost pit at the back of the project site. These are burned every week to
avoid accumulation of these waste materials.

CHAPTER IV
FINANCIAL FEASIBILITY
A. ASSUMPTIONS
1. Furniture of three qualities will be made: Superior, Fine, Normal;
to cater to the need of both local and export markets.
2. These are sold in the sets to customers in cash or on specified
credit terms to good paying customers.
3. Special discounts are given to cash purchases and to customer
for purchases in volumes.
4. Production capacity will be increased study to achieve maximum
capacity.
5. After paying the taxes and licenses and bank loan, amortization
including all miscellaneous expenses, a good income is expected
from the business operation.
B. TOTAL PROJECT COST
The project is estimated at 10,000,000 which are summarized as
follows:
Fixed Cost

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Land for Factory

Building/Infrastructure for Factory
Machinery & Equipment
Office Equipment, Furniture for
Factory
Pre-operating Costs
Total Capital Expenditure

1,000,000
4,590,000
1,043,150
91,100
248,790
6,973,040

Working Capital
Raw material inventory
Cash requirements
Total

696,000
550,000
1,246,000

Overheads
Utilities
Depreciation
Administration
Selling and Distribution
Miscellaneous
Total

560,000
290,960
480,000
300,000
150,000
1,780,960

CHAPTER V
SOCIO-ECONOMIC FEASIBILITY
A. EMPLOYMENT AND INCOME
The labor required for manufacturing process is easily available on
daily wages, per unit
basis and permanently employed. It is recommended that selective highly
skilled labor
should be employed permanently and other labor should be hired as and
when required.
Following permanent human resource is required both at factory and show
room.
Factory Staff Requirement Details:
Description
No
Monthly Salary (Rs)
(Rs)
Production supervisor
1
20,000
Accounting staff
5
15,000
Carpenters
10
8,000
Machine man
1
10,000

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Total Annual Salary

240,000
900,000
960,000
120,000

Polish man
3
Carving
Helpers
2
Factory admin officer
Draftsman / CAD Operator
Purchaser/Store Officer
Gate Keeper
2
Total Production Staff

8,500
2
4,000
1
1
1
4,000

8,000
12,000
8,000
12,000

306,000
192,000
96,000
144,000
96,000
144,000
96,000
3,294,000.00

B. TAXES
The project regularly pays taxes to the city government as required by
law. Other government requirements includes the payment of license
fees and business permit. A portion of this amount is included in the
aloocation for various government projects.
C. PRODUCTIVITY
This business will help promote the increase of the economic status of
the city. And will eventually start exporting local products to foreign
countries, with this our indigenous products will be well known thru out
the world. And also increase the livelihoods of the local citizens
especially farmers who plays an important function in the plantation of
raw materials which is essential in producing furniture.
EMPLOYMENT

INCOME

TAXES

COMMUNITY
DEVELOPMENT

PRODUCTIVITY

SOCIOECONOMIC
IMPACT

CHAPTER
VI
INCREASE OF

PRODUCTION IN RAW
ORGANIZATIONAL MATERIALS
AND MANAGEMENT FEASIBILITY
A. FORM OF OWNERSHIP
The project is a corporation composed of five components. Each one has a
specific function according tom their field of expertise.
B. ORGANIZATIONAL CHART

PRESIDENT

CUSTOMER RELATION
DEPARTMENT

ACCOUNTING
DEPARTMENT
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SALES
DEPARTMENT

HUMAN
RESOURCE
DEPARTMENT

C. DEPARTMENTS
1. PRESIDENT acts as the head of the company. He manages the entire
business, supervises all the employees, and controls all business
transactions. Organise and plan their departments to exceed the
expectation of internal and external customers. They work closely with
other managers across the company to promote a range of benefits,
including; continuous process improvements, improving accuracy,
reducing the need to repeat work and driving up efficiency year on
year.
2. ACCOUNTING DEPARTMENT - to provide reliable information which
can be relied by the management while making decisions. The
department ensures that the information is valid, reliable and
justifiable. It is also the department's objective to provide and
integrate the organizational strategies.
3. CUSTOMER RELATION DEPARTMENT - to in still and establish a
positive image of the company in the customer's mind. With positive
perception comes more orders and revenue from the customer. As a
function, customer relations, more pointedly, is responsible for
representing the company externally, resolving customer conflicts,
responding to questions, understanding the customers' business and
conducting customer satisfaction surveys.
4. HUMAN RESOURCE DEPARTMENT - to deal with management of
people within an organisation. The Department is responsible for hiring
members of staff and ensuring that they perform to expectation. HR
department is also responsible for organisation of people in the whole
company and planning of future ventures that involves people in the
company.
5. SALES DEPARTMENT - they select the channels through which the
goods are to be distributed, trains the salesmen in a knowledge of the
goods and in methods of selling them, Supervises and directs the sales
activities of the men out in the field. Sales men are responsible for
persuading the consumer to purchase the end product, manufactured
through marketings research. The Sales Departments selling strategy

19

could involve mail shots, travelling sales representatives, telephone

sales and devising the sales interview.
D. PROJECT SCHEDULE
1. The project is still at the planning stage making all the necessary
preparations.
2. Once the loan is granted, the building will start to be constructed,
workers will be recruited and hired, and raw materials will be procured
3. Once completed, the production of wooden furniture will begin and the
project will become operational.

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