Chapter 3: Technical Study

a. Product Description

A typical sour seasoning obtained by fermentation of dilute alcoholic liquids and mainly used as
a condiment or preservative. This vinegar is made from pure naturally fermented coconut water
Product application: Flavoring in meal preparation and cooked meals. Seasoning. Sauce.
Vegetable and meat salad dressings.
Coconut vinegar is a product of alcoholic fermentation of coconut water augmented with 10-
12% sugar using Saccharomyces cerevisiae. The acetous fermentation with Acetobacter aceti
starts after 5% ethanol is produced. It is seen in the market as the best alternative to synthetic
vinegar. Coco vinegar is the product made by the alcoholic and subsequent acetous
fermentations of the sap of coconut palm.

b. Manufacturing Process

In producing coco vinegar, the study will be adapting the Accelerated Coco
Vinegar Processing as conducted by the DOST-ITDI Food Processing Division. The process
is designed to accelerate the traditional fermentation of vinegar making. It makes use of an
acetator kit as provided by the said organization. The acetator kit accelerates the production
of vinegar such that daily production can be made after the fermentation period.
The coconut water is strained through the use of rotary filter to remove any solid
or foreign particles. The filtered coco water is fed to the mixer where sugar is added to adjust
the concentration to approximately 11-12%. Nutrients are also added to the mixer where it will
be subjected to agitation for the effective catalysis of microorganisms.
The mixture is pasteurized by heating to 82C to remove microorganisms and
contaminants in the sugar mash solution. Overheating must be avoided as it affects the flavor.
The mixture is transferred to the fermentation container and allowed to cool at
ambient temperature. In the fermenter, NH4OH is added for a hastened oxidation of glucose in
the sugar mash solution to ethanol. After alcoholic fermentation for about 4 days, the clear
liquid is fed to the acetator and inoculated with mother vinegar containing acetobacter bacteria.
Here the alcoholic ferment is oxidized to acetic acid.
 c. Plant Size and Production Schedule

The plant size will be a building with 50x40x30 dimension. (length*width*height)

SUMMARY OF WATER CONSUMPTION
FERMENTER

# of Water Projected Water

YEAR Year
Fermenter Consumption (L) Consumption (L)

1 6 15,956,688.96 1 16,841,928.96
2 6 15,956,688.96 2 16,886,190.96
3 6 15,956,688.96 3 17,728,248.96
4 7 18,616,137.12 4 20,476,275.12
5 7 18,616,137.12 5 20,388,057.12
6 7 18,616,137.12 6 20,476,653.12
7 8 21,275,585.28 7 23,047,865.28
8 8 21,275,585.28 8 23,136,479.28
9 8 21,275,585.28 9 23,048,225.28
10 9 23,935,033.44 10 25,796,305.44
11 9 23,935,033.44 11 25,889,369.04
12 10 26,594,481.60 12 28,646,533.98

Packaging

Water
YEAR # of Bottles
Consumption (L)

1 2,459 885,240.000
2 2,582 929,502.000
3 4,921 1,771,560.000
4 5,167 1,860,138.000
5 4,922 1,771,920.000
6 5,168 1,860,516.000
7 4,923 1,772,280.000
8 5,169 1,860,894.000
9 4,924 1,772,640.000
10 5,170 1,861,272.000
11 5,429 1,954,335.600
12 5,700 2,052,052.380
Assumption
1. Water consumption is 0.5L/bottle
d. Machinery and Equipment

Filter Press
Fabricator Machinery and Equipment, Inc. San
Francisco, Ca
Number required 1
Function To clarify the fresh coco water from
suspended and foreign particles

Capacity of each (per batch) 0.75 m3 (750 L)

Type Rotary Filter
Diameter 0.6096 m (24 in)
Height 0.635 m (25 in)
Motor 1/3 hp
Material of Construction Carbon Steel

Mixing Tank with Agitator

Fabricator Machinery and Equipment, Inc. San
Francisco, Ca
Number required 1
Function To produce a homogenous mixture of
coconut water and brown sugar

Capacity of each (per batch) 0.70 m3 (700 L)

Diameter 0.80 m
Height 1.40 m
Agitator 6-blade turbine
Motor 3 hp
Material of Construction Carbon Steel
 Pasteurizer 1
Fabricator Machinery and Equipment, Inc. San
Francisco, Ca
Number required 1
Function To pasteurize and kill unwanted
microorganisms in the sugar mash
solution
Capacity of each (per batch) 0.70 m3 (700 L)
Type Jacketed Kettle with recirculating
pump, timer, and lift & swing cover
Diameter 0.80 m
Height 1.40 m
Motor 2 hp
Temperature required 355.15 K (82C)
Material of Construction Stainless Steel 114

Fermenter
Fabricator Princena Machine Shop
Number required 6
Function To ferment sugar mash solution

Capacity of each (per batch) 1.50 m3 (1500 L)

Type Enclosed stainless steel tank with
internal cooling
Diameter 1.10 m
Height 1.60 m
Motor 3 hp
Material of Construction Carbon Steel
 Acetator
Fabricator DOST-ITDI FPD
Number required 4
Function To convert the alcohol mash into vinegar

Capacity of each (per batch) 0.90 m3 (900 L)

Type As provided by the DOST-ITDI FPD
Diameter 0.85 m
Height 1.60 m
Motor 1 hp
Material of Construction Polypropylene Drums

Pasteurizer 2
Fabricator Machinery and Equipment, Inc. San
Francisco, Ca
Number required 1
Function To prevent further esterification of
vinegar

Capacity of each (per batch) 0.90 m3 (900 L)

Type Jacketed Kettle with recirculating
pump, timer, and lift & swing cover
Diameter 0.80 m
Height 1.40 m
Motor 2 hp
Temperature required 355.15 K (82C)
Material of Construction Stainless Steel 115
 Rotary Rinser
Fabricator ELGIE PACKING EQUIPMENT INC.
Number required 1

To rinse and remove dirt in the bottles

Function
before filling

Capacity of each (per batch) 15 bottles per minute

Type Stainless steel semi-automatic rinser

Height 1.80 m
Motor 3 hp
Material of Construction Stainless steel

Filler
Fabricator ELGIE PACKING EQUIPMENT INC.
Number required 1

To fill the bottles with the coco vinegar

Function
in 500 mL volumes

Capacity of each (per batch) 15 bottles per minute

Type Stainless steel semi-automatic in line 12
nozzle filler
Height 2.20 m
Motor 3 hp
Material of Construction Stainless steel
 Screw capper
Fabricator ELGIE PACKING EQUIPMENT INC.
Number required 1

To close the container with plastic caps

Function
to ensure quality

Capacity of each (per batch) 15 bottles per minute

Type Stainless steel semi-automatic single
head screw capper
Height 1.40 m
Motor 3 hp
Material of Construction Stainless steel

e. Plant Location

The Integrated Coconut Processing Plant will be situated in Goa, Camarines Sur. The major
factors for the selection of the location are (1) raw material availability in the area, (2) markets,
(3) power and fuel, (4) climate, (5) transportation facilities.

f. Plant Layout

The plant layout for the Coco Vine has five primary manufacturing sections Activated Carbon (A.C.),
Primary Processing, Virgin Coconut Oil, Cocovinegar, and Cocoburger Sections. Basically, the last four
sections that mostly correspond to consumable foods are separated from the A.C. section for the
following reasons: (1) A.C. production will deteriorate the production of other goods, (2) to strictly
control the pollution and prevent contamination, and (3) to have organized plant layout design.

The primary processing section is the heart of the operation because this is where all parts of the
coconut (such as the husk, shell, cocomeat, and cocowater) are separated using several equipments.
These coconut parts will then be delivered to their respective areas as raw materials.

The cocowater will be received by the cocovinegar section from the splitters to rotary filters.
The shell will be transported to the A.C. section via the conveyor.The figures shown on the proceeding
pages are the plant and equipment layout of the Cocos Processing Co. The dashed lines, which can be
seen in the equipment layout indicates expansion or installation of new equipment since the plant
production will be increasing at a rate of 5 % per year.
g. Building Facilities

Coconut Water Storage

Tank
Fabricator Princena Machine Shop
Number required 1
Function To store a week supply of
coconut water
Capacity of each 0.80 m3 (800 L)

Diameter 0.80 m
Height 1.60 m
Material of Construction Polypropylene
Brown Sugar Storage Bin
Fabricator Princena Machine Shop
Number required 1
Function To store a week supply of brown
sugar
Capacity of each 15 m3
Type Cylindrical with conical hopper
bottoms
Diameter 2.68 m
Height 2.68 m
Material of Construction Carbon Steel

Nutrients (NH4)2SO4 Bin

Fabricator Princena Machine Shop

Number required 1
Function To store a month supply of
(NH4)2SO4
Capacity of each 30 kg storage
Type Cylindrical with conical hopper
bottoms
Diameter 0.3 m
Height 0.4 m
Material of Construction Carbon Steel

Pasteurized Sugar Mash

Storage Tank
Fabricator Princena Machine Shop
Number required 1
Function To store the first batch of
pasteurized sugar mash
Capacity of each 0.70 m3 (700 L)
Diameter 0.80 m
Height 1.40 m
Material of Construction Polypropylene
 NH4OH Storage Bin
Fabricator Princena Machine Shop
Number required 1
Function To store a month supply of
NH4OH
Capacity of each 700 kg storage
Type Cylindrical with conical hopper
bottoms
Diameter 0.55 m
Height 0.7 m
Material of Construction Carbon Steel

h. Raw Materials

Goa is included in Bicol area ranks 2nd among the largest coconut producing regions in the
country (UCAP 2003) so it is easy to avail products from the abundant supply of neighboring
towns and barrios. Figure 6.1 shows historical and projected Coconut Harvest in the region for a
12 year period (UCAP 2003)
Philippine Coconut Harvest : Southern Tagalog and Bicol Region

Year 1999 2000 2001 2002 2003 2004 2005 2006 2007
Million Nuts
2670 2,926.00 2,907.00 3,119.00 3,147.00 3,297.90 3,374.52 3,472.90 3,571.28
Year 2008 2009 2010 2011 2012 2013 2014 2015 2016
Million Nuts
3,669.66 3,768.04 3,866.42 3,964.80 4,063.18 4,161.56 4,259.94 4,358.32 4,456.70
 Computer generated projections using Microsoft Excel for a 12 year period was based on
historical data from 1999 to 2003. Figure and tables show a steady increase of 3% for the first 5
years and 2% for the remaining 7 years.

Coconut Increase of Required

Coconut Harvest
Year Harvest(Million Coconut Coconuts Share(%)
(MT) Harvest(%)
Nuts) (MT)
2004 3,247.47 3,896,960.00 - 3,600.00 0.09

2005 3,340.55 4,008,662.86 0.03 3,780.00 0.09

2006 3,433.64 4,120,365.71 0.03 3,969.00 0.10
2007 3,526.72 4,232,068.57 0.03 4,167.45 0.10
2008 3,619.81 4,343,771.43 0.03 4,375.82 0.10
2009 3,712.90 4,455,474.29 0.03 4,594.61 0.10
2010 3,805.98 4,567,177.14 0.03 4,824.34 0.11
2011 3,899.07 4,678,880.00 0.02 5,065.56 0.11
2012 3,992.15 4,790,582.86 0.02 5,318.84 0.11
2013 4,085.24 4,902,285.71 0.02 5,584.78 0.11
2014 4,178.32 5,013,988.57 0.02 5,864.02 0.12
2015 4,271.41 5,125,691.43 0.02 6,157.22 0.12
2016 4,364.50 5,237,394.29 0.02 6,465.08 0.12

From the data above, this just shows that raw material availability in the region is stable, and
that it can accommodate enough coconuts for such a project in which its small percent share for
raw material requirement gives enough share for other competitors, thus assuming the
elimination for the possibility of any shortages and competition for raw materials. For procured
shells for activated carbon processing, the abundance of copra makers and VCNO plants in the
Bicol will provide ample coco shells.

: Inventory of CV Raw Materials

BROWN SUGAR

kg pesos

YEAR B.I. PURCHASE USAGE E.I PRICE BI PURCHASE USAGE EI

1 16,709 99,142 100,256 17,545 15.00 250,641 1,487,137 1,474,605 263,173
2 17,545 106,146 105,269 18,422 15.60 263,173 1,655,885 1,631,673 287,385
3 18,422 111,454 110,533 19,343 16.22 287,385 1,808,226 1,781,787 313,824
4 19,343 117,026 116,059 20,310 16.87 313,824 1,974,583 1,945,711 342,696
5 20,310 122,878 121,862 21,326 17.55 342,696 2,156,245 2,124,717 374,224
6 21,326 129,022 127,955 22,392 18.25 374,224 2,354,619 2,320,191 408,653
7 22,392 135,473 134,353 23,512 18.98 408,653 2,571,244 2,533,648 446,249
8 23,512 142,246 141,071 24,687 19.74 446,249 2,807,799 2,766,744 487,304
9 24,687 149,359 148,124 25,922 20.53 487,304 3,066,116 3,021,284 532,136
10 25,922 156,827 155,531 27,218 21.35 532,136 3,348,199 3,299,242 581,092
 11 27,218 164,668 163,307 28,579 22.20 581,092 3,656,233 3,602,773 634,553
12 28,579 142,894 171,472 0 23.09 634,553 3,299,675 3,934,228 0
Note: 2 Months Inventory

(NH4)2SO4

kg pesos

YEAR B.I. PURCHASE USAGE E.I PRICE BI PURCHASE USAGE EI

1 107 646 641 112 15 1,602 9,692 9,612 1,682
2 112 678 673 118 15.60 1,682 10,584 10,429 1,837
3 118 712 706 124 16.22 1,837 11,557 11,388 2,006
4 124 748 742 130 16.87 2,006 12,621 12,436 2,190
5 130 785 779 136 17.55 2,190 13,782 13,580 2,392
6 136 825 818 143 18.25 2,392 15,050 14,830 2,612
7 143 866 859 150 18.98 2,612 16,434 16,194 2,852
8 150 909 902 158 19.74 2,852 17,946 17,684 3,115
9 158 955 947 166 20.53 3,115 19,597 19,311 3,401
10 166 1,002 994 174 21.35 3,401 21,400 21,087 3,714
11 174 1,052 1,044 183 22.20 3,714 23,369 23,028 4,056
12 183 913 1,096 0 23.09 4,056 21,090 25,146 0
Note: 2 Months Inventory

NH4 OH

kg pesos

YEAR B.I. PURCHASE USAGE E.I PRICE BI PURCHASE USAGE EI

1 4,682 28,326 28,092 4,916 25.00 117,049 708,148 702,295 122,902

2 4,916 29,742 29,496 5,162 26.00 122,902 773,298 761,991 134,209

3 5,162 31,229 30,971 5,420 27.04 134,209 844,441 832,094 146,556
4 5,420 32,791 32,520 5,691 28.12 146,556 922,129 908,646 160,039
5 5,691 34,430 34,146 5,976 29.25 160,039 1,006,965 992,242 174,763
6 5,976 36,152 35,853 6,274 30.42 174,763 1,099,606 1,083,528 190,841
7 6,274 37,959 37,646 6,588 31.63 190,841 1,200,770 1,183,213 208,398
8 6,588 39,857 39,528 6,917 32.90 208,398 1,311,241 1,292,068 227,571
9 6,917 41,850 41,504 7,263 34.21 227,571 1,431,875 1,410,938 248,507
10 7,263 43,943 43,580 7,626 35.58 248,507 1,563,607 1,540,745 271,370
11 7,626 46,140 45,759 8,008 37.01 271,370 1,707,459 1,682,493 296,336
12 8,008 40,039 48,047 0 38.49 296,336 1,540,947 1,837,283 0
Note: 2 Months Inventory 0.01
 MOTHER VINEGAR

Kg pesos

YEAR B.I. PURCHASE USAGE E.I PRICE BI PURCHASE USAGE EI

1 13,664 82,667 81,984 14,347 8 109,312 661,337 655,872 114,778

2 14,347 86,801 86,083 15,065 8.32 114,778 722,180 711,621 125,337

3 15,065 91,141 90,387 15,818 8.65 125,337 788,621 777,090 136,868

4 15,818 95,698 94,907 16,609 9.00 136,868 861,174 848,582 149,460

5 16,609 100,482 99,652 17,439 9.36 149,460 940,402 926,652 163,210

6 17,439 105,507 104,635 18,311 9.73 163,210 1,026,919 1,011,904 178,226

7 18,311 110,782 109,866 19,227 10.12 178,226 1,121,395 1,104,999 194,622

8 19,227 116,321 115,360 20,188 10.53 194,622 1,224,564 1,206,659 212,528

9 20,188 122,137 121,128 21,197 10.95 212,528 1,337,224 1,317,671 232,080

10 21,197 128,244 127,184 22,257 11.39 232,080 1,460,248 1,438,897 253,432

11 22,257 134,656 133,543 23,370 11.84 253,432 1,594,591 1,571,275 276,747

12 23,370 116,850 140,220 0 12.32 276,747 1,439,086 1,715,833 0

Note: 2 Months Inventory 0.01

i. Office Supplies

Desk supplies Highlighters

Paper clips
Pens Tape
Pencils Rubber bands
Markers Erasers
 Stamp pads Time cards
Ink for stamp pads Scheduling boards
Paper products Todo lists
Binding supplies
Spiral notebooks
Writing pads Staples
Postit notes Bulldog clamps
Phone message pads Fasteners
Laser printer paper Glue
Copy paper Glue sticks
Fax paper Reinforcements
Graph paper 3ring binders
Colored paper Supplies for hanging
Pocket notebook
Filing supplies Pushpins
Thumbtacks
Manila file folders Map pins
Hanging file folders Identification supplies
Pocket folders
File labels Price tags
Index dividers Name badges
Tabs Labels
Stationery/mailing supplies Color coding labels

Letter envelopes
Catalog envelopes
Padded envelopes
Shipping paper
Shipping labels
Disk mailers
Bubble wrap
Sealing tape
Computer/printer supplies

Toner cartridges
3.5" high density disks
CDRoms
Zip drive tapes
Time tracking supplies

Calendar
Refills for planner
j. Furniture and Fixtures

k. Kitchen Supplies

4 cups coconu t water 1 /4 t sp yeast

3 /4 sugar 1 cup vin egar sta rter

U tensils:
st ainless cass erole stainless/wooden spoon
st ove wide mo uth cont ainer
dry cheese cloth plastic twine/rubber band rubber tubing
 l. Utilities

Managing and optimizing utilities costs are critical to meeting profitability targets. The
challenge to operate the utilities system with minimum cost and maximum reliability is thus
highly priorities in this study. The following tables show the electricity cost consumed by the
utilities used in the office and plant; lightning cost in all buildings of the plant, and the cost of
water, telephone, and fuel used in the operation.
Office & Plant Fixed Electricity Consumption

OFFICE (KWH)

Electricity Days per Year Power (KWH/Yr) Price per

Equipment Units Consumption (W) Hours Used KWH Annual Cost

Air conditioning Unit 20 2,664.00 12.00 312.00 199,480.32 6.30 1,256,726.02

Computer 20 225.00 12.00 312.00 16,848.00 6.30 106,142.40
Exhaust Fan 10 92.00 12.00 312.00 3,444.48 6.30 21,700.22
Photocopier/Scanner/Printer 2 175.00 12.00 312.00 1,310.40 6.30 8,255.52
Telefax Machine 10 7.00 12.00 312.00 262.08 6.30 1,651.10
Refrigerator 1 800.00 24.00 312.00 5,990.40 6.30 37,739.52
Water Dispenser 5 550.00 12.00 312.00 10,296.00 6.30 64,864.80
Oven Microwave 1 1,200.00 4.00 312.00 1,497.60 6.30 9,434.88
Television 5 130.00 4.00 312.00 811.20 6.30 5,110.56
Total 239,940.48 Php 1,511,625.02

PLANT (KWH)

Electricity Days per Year Power (KWH/Yr) Price per

Equipment/Section Units Consumption (W) Hours Used KWH Annual Cost

Exhaust Fan 20 92.00 12.00 360.00 7,948.80 6.30 50,077.44

Telefax Machine 5 7.00 12.00 360.00 151.20 6.30 952.56
Electric Fan 10 160.00 24.00 360.00 13,824.00 6.30 87,091.20
Computers 10 225.00 24.00 360.00 19,440.00 6.30 122,472.00
Air conditioning Unit
8 2,664.00 24.00 360.00 184,135.68 6.30 1,160,054.78
Total 225,499.68 Php 1,420,647.98

: Lighting Electricity Consumption

LIGHTING

AREA Days per Year Electricity Price per

BUILDING/SECTION (m2) Hours Usage Used (KWH/Yr) KWH Annual Cost

Manufacturing Section 0.02 KWH/m2

Primary Processing 375.00 24.00 64,800.00 6.30 408,240.00
 Activated Carbon 422.50 24.00 360.00 73,008.00 6.30 459,950.40
Virgin Coconut Oil 340.00 24.00 360.00 58,752.00 6.30 370,137.60
Coco Vinegar 553.50 24.00 360.00 95,644.80 6.30 602,562.24
Coco Burger 353.83 24.00 360.00 61,141.82 6.30 385,193.49
Quality Control 100.00 24.00 360.00 17,280.00 6.30 108,864.00
360.00
Process Control 100.00 24.00 17,280.00 6.30 108,864.00
360.00
Quality Control 100.00 24.00 17,280.00 6.30 108,864.00
360.00
Process Control 100.00 24.00 360.00 17,280.00 6.30 108,864.00
Water Treatment Plant 100.00 24.00 360.00 17,280.00 7.30 126,144.00
Waste Water Treatment Plant 50.00 24.00 360.00 8,640.00 8.30 71,712.00
Solid Waste Collection Facility 70.00 24.00 360.00 12,096.00 9.30 112,492.80
Warehouse 360 days/Year 0.0025 KWH/m2
Finished Goods Warehouse 375.00 24.00 360.00 8,100.00 6.30 51,030.00
Raw Materials Warehouse 375.00 24.00 360.00 8,100.00 6.30 51,030.00
Finished Goods Warehouse (AC)
163.82 24.00 360.00 3,538.40 6.30 22,291.95
RM Loading Area 150.00 12.00 360.00 1,620.00 6.30 10,206.00
Loading (AC) 100.00 12.00 360.00 1,080.00 6.30 6,804.00
Office 312 days/Year 0.035 KWH/m2
Administration Building 600.00 8.00 312.00 52,416.00 6.30 330,220.80
Canteen 100.00 8.00 360.00 10,080.00 6.30 63,504.00
Clinic 56.00 8.00 360.00 5,644.80 6.30 35,562.24
Guard House 360 days/Year 0.035 KWH/m2
Security Office 25.00 24.00 360.00 8,640.00 6.30 54,432.00
Perimeter and Roads 360 days/Year 0.1KWH/50m
Perimeter 420.00 12.00 360.00 302.40 6.30 1,905.12
Total Lighting Electricity
Consumption 560,004.23 Php 3,598,874.64
1. Amount of Electricity is 6.30 Php per KWH as the prescribed average electricity rate

: Fixed Water Consumption

PERSONNEL WATER CONSUMPTION

Water
Water Rate per
No. of
Department Consumption cu. Daily Cost Annual Cost
Personnel
cu. m/day Meter

General & Administrative 25 6.25 12.00 75.00 26,250.00

Sales & Marketing 9 2.25 12.00 27.00 9,450.00
Indirect Labor 44 11.00 12.00 132.00 46,200.00
Direct Labor (Non Equipment Based) 65 16.25 12.00 195.00 68,250.00
Total 143 35.75 Php 429.00 150,150.00
Assumptions:
1. Region IV Water Rate, 12Php/ cu. Meter
2. 350 working days a year
3. Average Personnel Water Consumption is 250 L/day
 No. of Average Monthly cost Total Cost /
DEPARTMENTS Telephone Line (Php) Total Cost (Php) Year (Php)

Administration 4
Office of the President 1 1,200.00 1,200.00 14,400.00
Office of the VP's 3 1,000.00 3,000.00 36,000.00
Operations 6
Purchasing 1 950.00 950.00 11,400.00
Production Control 1 950.00 950.00 11,400.00
Quality Assurance 1 950.00 950.00 11,400.00
Waste Management 1 950.00 950.00 11,400.00
R&D 1 950.00 950.00 11,400.00
Production/Manufacturing 5
AC Head 1 800.00 800.00 9,600.00
VCNO Head 1 800.00 800.00 9,600.00
CV Head 1 800.00 800.00 9,600.00
CB Head 1 800.00 800.00 9,600.00
Process Control 1 800.00 800.00 9,600.00
Other Offices 10
HR 2 1,000.00 2,000.00 24,000.00
Sales and Marketing 2 1,000.00 2,000.00 24,000.00
Treasury 1 850.00 850.00 10,200.00
Health & Safety 1 800.00 800.00 9,600.00
Security 1 1,000.00 1,000.00 12,000.00
Technical Services 1 950.00 950.00 11,400.00
TOTAL 24 20,550.00 246,600.00
: Telecommunications

FUEL CONSUMPTION

Daily Fuel Monthly

No of Requirement L Price of fuel per Daily usage of fuel Usage of fuel Annual price
Transportation
Units liter (Php)* (Php) (Php) of fuel (Php)

Delivery Truck (diesel) 5 20 27.10 2,710.00 81,300.00 975,600.00

Company Bus (diesel) 2 10 27.10 542.00 16,260.00 195,120.00
Forklift 1 10 27.10 271.00 8,130.00 97,560.00
Loader 3 10 27.10 813.00 24,390.00 292,680.00
TOTAL 7 3,523.00 105,690.00 1,560,960.00

: Fuel Consumption
Note*
The price of fuel is based from the Shell's May 14, 2005 rate of 27.10 Php per Liter of Diesel
 m. Depreciation

PRIMARY PROCESSING

Equipment Name Equipment Cost Life Depreciation Repair and Maintenance

Local PhP years PhP PhP

M.S. Sheller Bin 102,000.00 15.00 6,800.00 3,060.00

Man Operated De-Shelling Machine 122,000.00 15.00 8,133.33 3,660.00

SST 304 Rotary Splitter 105,000.00 15.00 7,000.00 3,150.00

Inspection Table or Chute 26,000.00 15.00 1,733.33 780.00

SST 304 Washing Screw Conveyor 295,000.00 15.00 19,666.67 8,850.00

Power Grinder 340,000.00 15.00 22,666.67 10,200.00

Transfer Screw Conveyor 78,000.00 15.00 5,200.00 2,340.00

Generator 1,344,000.00 20.00 67,200.00 40,320.00

TOTAL 138,400.00 72,360.00

COCO VINEGAR

Equipment Name Equipment Cost Life Depreciation Repair and Maintenance

Local PhP years PhP PhP

Fermenter 4,800,000.00 15.00 320,000.00 144,000.00

Acetator 100,000.00 15.00 6,666.67 3,000.00

Coconut Water Storage Tank 850.00 15.00 56.67 25.50

Brown Sugar Storage Bin 15,000.00 15.00 1,000.00 450.00

Nutrients (NH4)2SO4 Bin 3,000.00 15.00 200.00 90.00

Pasteurized Sugar Mash Storage Tank 800.00 15.00 53.33 24.00

NH4OH Storage Bin 1,200.00 15.00 80.00 36.00

 Stainless Steel Semi-Automatic Rotary
Rinser complete with stainless steel
251,125.00 15.00 16,741.67 7,533.75
tank, stainless steel pump and
cartridge filter

Stainless Steel Semi-Automatic In-Line

12 Nozzle Filler complete with 3" x 10 399,167.00 15.00 26,611.13 11,975.01
feet long TTC conveyor

Stainless Steel Semi-Automatic Single

345,000.00 15.00 23,000.00 10,350.00
Head Screw Capper

Stainless Steel Working/Packing Table

Conveyor with Shrink Tunnel for body 141,667.00 15.00 9,444.47 4,250.01
label and cap seal
Stainless Steel Roller Conveyor 12" x 8 22,083.00 15.00 1,472.20 662.49
feet long
Filter Press*** 45,000.00 20.00 2,250.00 900.00

Mixing Tank with Agitator*** 225,000.00 20.00 11,250.00 4,500.00

Pasteurizer*** 850,600.00 20.00 42,530.00 17,012.00

TOTAL 461,356.13 204,808.76

n. Watse Disposal

Effective waste management requires an integrated approach that includes strategies

for achieving waste reduction and recycling goals and increasing marketing development. This
study provides quantitative data on the costs of managing solid wastes and wastewaters, and
the costs of water and wastewater treatment.

SOLID WASTE COSTS

COST of DISPOSAL
SOLID WASTES GENERATED (Kg)
PRIMARY PROCESSING
YEAR VCNO VINEGAR TOTAL pHp / kg TOTAL

1 453,600.00 114,793.20 1,555.20 569,948.40 0.50 284,974.20

2 476,280.00 120,532.86 1,632.96 598,445.82 0.51 305,207.37
3 500,094.00 126,559.50 1,714.61 628,368.11 0.52 326,877.09
4 525,098.70 132,887.48 1,800.34 659,786.52 0.53 350,085.36
5 551,353.64 139,531.85 1,890.36 692,775.84 0.54 374,941.43
 6 578,921.32 146,508.44 1,984.87 727,414.63 0.55 401,562.27
7 607,867.38 153,833.87 2,084.12 763,785.37 0.56 430,073.19
8 638,260.75 161,525.56 2,188.32 801,974.63 0.57 460,608.38
9 670,173.79 169,601.84 2,297.74 842,073.37 0.59 493,311.58
10 703,682.48 178,081.93 2,412.63 884,177.03 0.60 528,336.70
11 738,866.60 186,986.03 2,533.26 928,385.89 0.61 565,848.61
12 775,809.93 196,335.33 2,659.92 974,805.18 0.62 606,023.86
Solid Waste Treatment Cost

WASTE WATER GENERATED

YEAR VINEGAR
1 2,689,330.68
2 2,823,797.21
3 2,964,987.07
4 3,113,236.43
5 3,268,898.25
6 3,432,343.16
7 3,603,960.32
8 3,784,158.34
9 3,973,366.25
10 4,172,034.57
11 4,380,636.29
12 4,599,668.11
Waste Water Generated in L

COST OF WASTEWATER TREATMENT18

EQUIPMENT TREATMENT COST SERVICE COST

YEAR RENTAL TOTAL

1 300,000.00 8,404,824.16 180,000.00 8,884,824.16

2 300,000.00 8,825,065.36 183,600.00 9,308,665.36
3 300,000.00 9,266,318.63 187,272.00 9,753,590.63
4 300,000.00 9,729,634.56 191,017.44 10,220,652.00
5 300,000.00 10,216,116.29 194,837.79 10,710,954.08
6 300,000.00 10,726,922.11 198,734.54 11,225,656.65
7 300,000.00 11,263,268.21 202,709.24 11,765,977.45
8 300,000.00 11,826,431.62 206,763.42 12,333,195.04
9 300,000.00 12,417,753.20 210,898.69 12,928,651.89
10 300,000.00 13,038,640.86 215,116.66 13,553,757.52
11 300,000.00 13,690,572.91 219,419.00 14,209,991.90
12 300,000.00 14,375,101.55 223,807.38 14,898,908.93
 Waste Water Treatment Cost

Considerations:
share-cost of wastewater
equipment rental = 300,000 pHp / year treatment cost = 1000
ac 0.64 pHp / m3 of wastewater treatment cost increases by 2% / year
service cost = 15,000 pHp / month = 180,000 pHp/ year service cost increase by
vcno 0.04
2% per year
cv 0.32
cb 0.00

WATER TREATMENT COST19

WATER CONSUMPTION ( cu. m)

YEAR VINEGAR COST OF TREATMENT SERVICE COST
CHEMICALS
1 15,956.69 25,611.77 180,000.00
2 16,754.52 26,892.36 183,600.00
3 17,592.25 28,236.98 187,272.00
4 18,471.86 29,648.82 191,017.44
5 19,395.46 31,131.27 194,837.79
6 20,365.23 32,687.83 198,734.54
7 21,383.49 34,322.22 202,709.24
8 22,452.66 36,038.33 206,763.42
9 23,575.30 37,840.25 210,898.69
10 24,754.06 39,732.26 215,116.66
11 25,991.76 41,718.87 219,419.00
12 27,291.35 43,804.82 223,807.38
Water Treatment Cost

o. Labor Requirement

Employee No. Months Basic Pay/ Total Salary Total Fringe Total
Month Benefits Compensation
Stage 1 - Start

President 1 20 65,000.00 1,300,000.00 17,550.00 1,317,550.00

VP for Finance/Administration 1 20 55,000.00 1,100,000.00 14,850.00 1,114,850.00

VP for Operations 1 20 58,000.00 1,160,000.00 15,660.00 1,175,660.00

VP for Marketing 1 20 55,000.00 1,100,000.00 14,850.00 1,114,850.00

Project Accountant 1 20 45,000.00 900,000.00 12,150.00 912,150.00

Technical Service Engineer 1 20 50,000.00 1,000,000.00 13,500.00 1,013,500.00

Safety Health & Environment Engineer 1 20 48,000.00 960,000.00 12,960.00 972,960.00

Maintenance & Safety Engineer 1 20 40,000.00 800,000.00 10,800.00 810,800.00

HR Director 1 20 30,000.00 600,000.00 8,100.00 608,100.00

Finance Officer 1 20 45,000.00 900,000.00 12,150.00 912,150.00

Document Controller 1 20 7,000.00 140,000.00 1,890.00 141,890.00

Documentation Clerk 2 20 6,000.00 240,000.00 1,620.00 241,620.00

Security Personnel 2 20 5,700.00 228,000.00 1,539.00 229,539.00

Janitor 1 20 5,700.00 114,000.00 1,539.00 115,539.00

1st Stage Total 16 10,681,158.00

Stage 2 - Construction
Materials Controller 1 12 13,500.00 162,000.00 3,645.00 165,645.00

Ware house Manager 1 12 13,500.00 162,000.00 3,645.00 165,645.00

Production Manager 1 12 45,000.00 540,000.00 12,150.00 552,150.00

Cashier 1 12 15,000.00 180,000.00 4,050.00 184,050.00

Security Personnel 4 12 5,700.00 273,600.00 1,539.00 275,139.00

Nurse 1 12 10,000.00 120,000.00 2,700.00 122,700.00

Janitor 3 12 5,700.00 205,200.00 1,539.00 206,739.00

2nd Stage Total 12 1,672,068.00

Stage 3 -Commissioning

Promotions Manager 1 3 30,000.00 90,000.00 8,100.00 98,100.00

Sales Manager 1 3 30,000.00 90,000.00 8,100.00 98,100.00

Quality Assurance Head 1 3 25,000.00 75,000.00 6,750.00 81,750.00

Waste Management Engineer 1 3 45,000.00 135,000.00 12,150.00 147,150.00

Primary Processing Head 1 3 11,000.00 33,000.00 2,970.00 35,970.00

Activated Carbon Head 1 3 11,000.00 33,000.00 2,970.00 35,970.00

Virgin Coconut Oil Head 1 3 11,000.00 33,000.00 2,970.00 35,970.00

Coco Vinegar Head 1 3 11,000.00 33,000.00 2,970.00 35,970.00

Coco Burger Head 1 3 11,000.00 33,000.00 2,970.00 35,970.00

Water Treatment Plant Operator 3 3 5,700.00 51,300.00 1,539.00 52,839.00

Solid Waste Tender 3 3 5,700.00 51,300.00 1,539.00 52,839.00

Waste Water Treatment Plant Operator 3 3 5,700.00 51,300.00 1,539.00 52,839.00

Nurse 2 3 10,000.00 60,000.00 2,700.00 62,700.00

Primary Processing Shift Supervisor 3 3 8,000.00 72,000.00 2,160.00 74,160.00

Activated Carbon Shift Supervisor 3 3 8,000.00 72,000.00 2,160.00 74,160.00

Virgin Coconut Oil Shift Supervisor 3 3 8,000.00 72,000.00 2,160.00 74,160.00

Ccoco Vinegar Shift Supervisor 3 3 8,000.00 72,000.00 2,160.00 74,160.00

Coco Burger Shift Supervisor 3 3 8,000.00 72,000.00 2,160.00 74,160.00

Primary Processing Operators 54 3 5,700.00 923,400.00 1,539.00 924,939.00

Activated Carbon Operators 27 3 5,700.00 461,700.00 1,539.00 463,239.00

Virgin Coconut Oil Operators 21 3 5,700.00 359,100.00 1,539.00 360,639.00

Coco Vinegar Operators 12 3 5,700.00 205,200.00 1,539.00 206,739.00

Coco Burger Operators 12 3 5,700.00 205,200.00 1,539.00 206,739.00

Ware house Clerk 9 3 5,700.00 153,900.00 1,539.00 155,439.00

Materials Checker 9 3 5,700.00 153,900.00 1,539.00 155,439.00

Loader 6 3 5,700.00 102,600.00 1,539.00 104,139.00

Mechanic 6 3 5,700.00 102,600.00 1,539.00 104,139.00

Electrician 6 3 5,700.00 102,600.00 1,539.00 104,139.00

Janitor 8 3 5,700.00 136,800.00 1,539.00 138,339.00

Forklift & Truck Driver 4 3 5,700.00 68,400.00 1,539.00 69,939.00

Accounting Clerk 2 1 6,000.00 12,000.00 1,620.00 13,620.00

Research & Development Head 1 1 30,000.00 30,000.00 8,100.00 38,100.00

Treasury Clerk 2 1 6,000.00 12,000.00 1,620.00 13,620.00

Personnel Clerk 2 1 6,000.00 12,000.00 1,620.00 13,620.00

Researchers 2 1 10,000.00 20,000.00 2,700.00 22,700.00

 Security Personnel 14 1 5,700.00 79,800.00 1,539.00 81,339.00 Pre
Operating
Doctor 1 3 10,000.00 30,000.00 2,700.00 32,700.00 Salaries &
Fringe
Benefits
Chemist 4 3 9,000.00 108,000.00 2,430.00 110,430.00

3rd Stage Total 237 4,516,964.00

4th Stage - Product Launching & Finishing

Sales Representative 4 1 11,000.00 44,000.00 2,970.00 46,970.00

Customer Care Representative 1 1 12,000.00 12,000.00 3,240.00 15,240.00

Main Reference: Integrated Coconut Processing, Bautista et. al., Mapua Institute of Technology