TECHNICAL ASPECT
PRODUCTION METHOD
In making the banana balls the 1st procedure is to select good quality bananas (saging na
saba). After selecting the good quality bananas (saging na saba), they are now peeled, washed and
then boiled for 12 minutes until it softens. Then after boiling the bananas, it was mashed and were
formed into balls. After forming the banana balls the sauce is now prepared by mixing condense
and evaporated milk, and if the desired consistency is reach, the banana balls are now soaked into
the made sauce for 2 minutes. Then after soaking, the balls are dressed with chocolate sauce and
sprinkled with sweet toppings ready to serve.
Selecting good
quality banana Peeling Washing Boiling
Mashed the
banana Forming into Prepare the Dressed the
balls sauce, and after banana balls and
preparing soak sprinkled with
the banana balls sweet toppings
PLANT SIZE AND LOCATION
The plant size is approximately 439 m2 located at the market of Visayas State University
Main Campus. This is where all the activities in the production of banana balls takes place. And
this is where also the banana balls are placed ready for market.
PLANT LAYOUT
The current building and layout for producing banana balls are designed intended to
facilitate ease, good, and appropriate arrangement of equipment and other facilities.
The layout illustrates the different parts of the processing plant which includes the
following: entrance, displaying tables for banana balls for market, production area, utility room,
accounting room and comfort room.
LAND AND BUILDING REQUIREMENTS
The table shows the land and processing plant with their corresponding costs, life spans
and annual depreciations. To expand the market of the product, it needs to legally acquire land for
its production site and location for their input facilities that will help determine the success of the
business expansion. The land costs Php2, 500 m2 which lead to the cost of Php790,200 for the land
acquisition. For this production, 439 m2 of land is utilized.
The building as included in the operation input costs Php350,000. It’s estimated life span
as long as 15 years and with an annual depreciation of
ITEMS UNIT UNIT TOTAL YEAR LIFE ANNUAL
COST COST ACQUIRED SPAN DEPRECIATION
(Php)
Land 439 m2 1,800 m2 790,200 - -
Building 1 300,000 300,000 2,000 15 50,000
Total 1,090,200
TOOLS, MACHINIERIES AND EQUIPMENT REQUIREMENTS
The table below shows that different tools that are being used in the production of banana
balls.
ITEMS QUANTITY UNIT TOTAL LIFE SPAN ANNUAL
PRICE COST (YEARS) DEPRECIATION
(PhP) (PhP) (%)
Pan 5 300 1,500 5 60
Carajay 2 180 360 5 36
Mixing Bowl 5 150 750 5 30
Plate 4 45 180 5 9
Tray 2 100 200 5 20
Masher 2 155 310 5 31
Spoon 6 115 690 5 23
Laddle 2 75 150 5 15
Plastic 5 40 200 1 8
Gloves
Refrigerator 1 8000 8000 10 800
RAW MATERIALS AND SUPPLIES REQUIREMENTS
The table below is the list of an annual raw material requirement with corresponding
quantities and costs that is to sustain the production of banana balls throughout the year.
RAW MATERIAL QUANTITY UNIT COST (Php) TOTAL COST (PhP)
BANANA 200 kgs. 40/kilo 8,000
UTILITIES REQUIREMENTS
The table shows the utilities needed in order to maintain the production of the desired
product. These utilities are water, and electricity which is commonly paid monthly. The source of
electricity is the Leyte Electric Cooperative (LEYECO). Electricity and water are vital and should
always be considered in operating a business as it affects the whole production, the efficiency and
profitability of the business.
Annual Utilities Requirement
ITEM QUANTITY UNIT COST TOTAL ANNUAL
(PhP) MONTHLY COST (PhP)
COST (PhP)
Water 150 m3/mo. 14.55 m3 / 2,182.5 26,190
Electricity 95 kwh/mo. 17 kwh 1,615 19,380
Total 3,797.5 45,570
WASTE DISPOSAL
The biodegradable waste from production of banana balls will be thrown into the
compost pit area. While, the non-biodegradable waste will be disposed into trash cans and will be
collected by the local garbage truck. The recyclable materials will be segregated.
DIRECT LABOR
The management shall hire personnel which will be given a minimum of Php270 day
working 25 days in a month. The hired workers should be obedient, responsible, innovative and
accurate. They must produce at least 300 banana balls.
POSITION NUMBER SALARY TOTAL INCENTIVES ANNUAL
(PhP/ COST (PhP/ YEAR) COST
MONTH) (PhP
MONTH)
VENDOR 1 2,900 2,900 20,000 34,800
CASHIER 1 2,900 2,900 20,00 34,800
PRODUCTION 2 3,000 6,000 24,000 36,000
WORKERS
PACKAGING 1 3,000 3,000 24,000 36,00
WORKER
LABELING 1 2,800 2,800 24,000 36,000
WORKER
EXPECTED PRODUCTION LEVEL
The table shows the annual production capacity and potential of producing banana balls.
YEAR PRODUCTION LEVEL (PCS.)
1 36,100
2 90,250
3 108,300
4 126,350
5 144,400
TOTAL 505,400
OPERATIONAL SCENARIOS
The production of banana balls there are some activities that are undertaken before
starting the operation as shown in the table. The first three months, the students are hired to conduct
feasibility study of the product, and if the viability of the product is proven, a business plan is to
be formulated for the next 3 months. The funds are accumulated in 5 to 6 months. The process for
license of operation is on the 7th month. The acquisition of land also is done on the 7th month, and
extended on the 8th and 9th month. Hiring of employees is done on the 10th and 11th month. And
the purchase of materials is done on the 11th month. And lastly, the start of operation is done on
the 12th month.
