Production and Technical Plan

The business needs a 10x15 square meter area where a Len’s Games and internet Cafe is
to be built. The raw materials are supplied by the Techno Mart Company from the company the
product gets by the family service. In making inventory it need inventory system so the process
makes it easier and faster. The Len’s Games and internet Cafe is need at least five employees.
Individuals who have knowledge on computers are required on this kind of business. Three sales
assistant, a cashier (owner) and two will do the inventory together the owner and accounting is
needed.

Process Flow Chart

Supplier Business
Enterprise

Owner

Cashier

; Sales Associate

Direct Raw Material

Every month the establishment business is need to pay a current, also in getting the
products needs gasoline for the service .The business needs to pay the task and registration,
the business will have many client during weekend and during time of 5:00pm to 9:00 pm

Table 2.2-Direct Materials

Materials Needed and Cost

Materials Volume Price Cost

Speaker 11 250
Computers 11 12,500
One printer 100 250 25,000
 Mouse 150 120 18,000
Headphone 90 500 45,000
Power Supply 120 750 90,000
CPU Fan 150 400 60,000
Processor 50 3,000 150,000
Sound Card 120 1,200 144,000
CD-ROM 50 1,000 50,000
Hard Disk 40 5,000 200,000
LAN Card 100 1,500 150,000
RAM 80 2,000 160,000
Video Card 90 1,800 162,000
Webcam 100 900 90,000
DVDR/DVDRW 150 40 6,000
UPS 80 3,000 240,000
DVD-ROM 120 800 96,000
AVR 100 2,000 200,000
Memory Card 50 500 25,000
Memory Card Reader 50 300 15,000
RJ 45 2000 5 10,000
RJ 11 2000 4 8,000
Total: 1,981,500

 two printers = $1,000

 one scanner = $500
 software = $810
 one espresso machine = $10,700
 one automatic espresso grinder = $795
 other fixtures and remodeling:
o two coffee/food preparation counters = $1,000
o one information display counter = $1,000
o one drinking/eating counter = $500
o sixteen stools = $1,600
o six computer desks w/chairs = $2,400
o stationery goods = $500
o two telephones = $200
o decoration expense = $13,000

These supplies will be supplied by the techno Mart Company of Digos, City.
Direct Labor

The owner (entrepreneur) who must have the following knowledge:

a. Computer Skills

b. Business Administration

c. Inventory

Sales Associate
 18-30 years of age
 At least College Undergraduate of a computer-related course
 Computer Knowledge and Skills
 Pleasing personality
 With Positive and Proactive personality
Salaries:
Sales Associates - P 2,500.00/month

Direct Labor

Kind of Skill Number Salary Budget

Worker of Scale (Number of
Workers workers x
salary
scale)
Sales Able to give 1 2,500.00 2,500.00
Associate efficient
assistances
to the
queries of
the
customers.
Must have
bigger
knowledge
on computer
parts and
accessories
in order to
become
effective.
 Owner Able to 1
operate
computers
and must
have
knowledge
on inventory
and
accounting.
Total Budget: 2,500.00

2.4 Factory Overhead

Table 2.4 Factory Overhead

Type of Factory Overhead Budget

Insurance 8,4000
Light and Water 6,000
Total Budget: 14,400.00

2.5 Fixed Capital (Fixed Assets)

Table 2.5 Fixed Capital (Fixed Assets)

Account
Cost Life/Years Depreciation
Title
Thousand of
Land 50,000
years
Building 200,000 20%
Equipment 60,000 5 years 15%
Furniture and
40,000 5 years 15%
Fixtures
TOTAL
FIXED
CAPITAL
350,000
PRODUCTIO
N
2.6 FACTORY LOCATON AND LAY-OUT

This business will be located at Poblacion, Bansalan, Davao del Sur. Lot size is 80 square
meter.

To

C
O B
T MIGAS U
A S
B Computer
A T
T Parts and E
O Accessories R
City
M
BAFAVENTRA I
N
Legend A
Internet Cafe L

To Bansalan Public Market

MC PASROY
SQUARE

To

D
I
G
O
S

City
2.7 PRODUCTION BUDGET

Table 2.7 Finance Schedule-Production Budget

FINANCE SCHEDULE-PRODUCTION BUDGET
PARTICULARS Year 1 Year 2 Year 3
Merchandising Cost
1,981,500
(Table 2.2)
Direct Labor
30,000
(Table 2.3)
Factory Overhead
102,000
(Table 2.5)
Depreciation-
50,100 40,200 30,300
Equipment
Depreciation-
Furniture and 38,800 37,600 36,400
Fixtures
TOTAL BUDGET-
2,210,500.00
PRODUCTION

Marketing Plan

3.1 Business

The MIGAS Computer Parts and Accessories will offer computer hardware parts
and accessories that will satisfy the needs of the customers who have computers at home or
internet cafes.

3.2 Competitor
 The MIGAS Computer Parts and Accessories has no competitor on its prospect
location. The products are not imitations unlike other computer stores who offer imitations.
MIGAS Computer Parts and Accessories offers quality and affordable products to the customers.

3.3 Market

The business will be located at Poblacion, Bansalan, Davao del Sur. The residents
who have computers at home are the prospective buyers and also the owners of the internet cafes
on the said location.

Table 3.5 Sales Forecast

3.4 Price
Sales Forecast Year 1 Year 2 Year 3
The
27,300 30,030 33,033 method of
Speaker
pricing is called
6,825 7,507.5 8,258.25 Cost-Plus
Mouse Pad
22,750 25,025 27,527.5
wherein the
Keyboard profit margin will
be 30%. An
16,380 18,018 19,819.8 additional 30%
Mouse
of the original
Headphone 40,950 45,045 49,549.5
price will be
Power Supply 81,900 90,090 99,099
added and it will
CPU Fan 54,600 60,060 66,066
be the new price
Processor 136,500 150,150 165,165
of the product.
Sound Card 156,084 171,692.4 188,861.64
CD-ROM 45,500 50,050 55,055
Hard Disk 182,000 200,200 220,220
LAN Card 136,500 150,150 165,165
3.5 Sales
RAM 145,600 160,160 176,176
147,420 162,162 178,378.2
Forecast
Video Card
Webcam 81,900 90,090 99,099
DVDR/DVD 5,460 6,006 6,606.6

RW
UPS 218,400 240,240 264,264
DVD-ROM 87,360 96,096 105,705.6
AVR 182.00 200,200 220,220
Memory 22,750 25,025 27,527.5

Card
Memory 13,650 15,015 16,516.5

Card Reader
RJ 45 9,100 10,010 11,011
RJ 11 7,280 8,008 8,808.8
3.6 Promotion

Through advertisement of local radio station and by giving leaflets this business will be
promoted. To catch up the attention of the customer regarding to the information of the products
offered by the enterprise.

3.7 Marketing Budget

Account Title Year 1 Year 2 Year 3

Salaries and 30,000 31,500 33,075
Wages –
Sales Associate

Advertisement 15000 15,750 16,537.5

Transportation 5000 5,250 5,512.5

Total Budget - 50,000 52,500 55,125

Marketing