CHAPTER II

TECHNICAL ASPECT

In engaging into business requires much preparations and research. Many

factors must be considered before making decisionsin implementing it. Every
detail of the business and the product should be well planned. Hence, it is very
important to study the technical aspect of the business well.
Technical aspect shows and discusses the basic operation flows and
activities of the proposed project. Furthermore, it identifies whether the product
offered can be produced at a desired quantity at its minimum cost.

PRODUCT DESCRIPTION

The proposed product is deodorant. It is made up of coconut oil, baking

soda, corn starch, and beeswax. Studies on individuals with dry skin show that
coconut oil can improve the moisture and lipid content of the skin. Coconut oil is
excellent massage oil for the skin as well. It acts as an effective moisturizer on all
types of skin, including dark underarm. The benefit of coconut oil on the skin is
comparable to that of mineral oil. Fortunately, unlike mineral oil, there is no
chance of having any adverse side effects on the skin from the application of
coconut oil. Coconut oil therefore is a safe solution for preventing dry skin,
whitens dark underarm and lessens odour.

Beeswax locks in moisture, fosters cells and protects skin from damaging
environmental factors. Honeygirlorganic.com reports beeswax effectively "softens
your skin and creates a long-lasting protective coating against the elements. It
also is a naturally nourishing moisturizer as well as being anti-inflammatory,
antibacterial, anti-allergenic and a germicidal antioxidant." We also use Baking
Soda, according to TLC Planet Green's Josh Peterson, "Baking soda makes a
top-notch exfoliation." He says it's because baking soda is "coarse, but not too
coarse. It's the best amount of coarse for removing the top layer of dead skin
cells, and if applied correctly, it won't cause your sensitive skin to become red
and irritated."
Our deodorant product is safe, affordable and convenient with the health
benefits the users can have. To use the product, apply 4-6 swipes per underarm
every day. Do not apply on broken skin. If irritation occurs, discontinue use.
Production Schedule

PRODUCTION FLOW

Raw Material Procurement

Shredding the coconut

Extracting the coconut milk

Filtering

Cooking the coconut milk into oil

Mixing with other ingredients

Packaging and Storing

The production flow of the proposed product as summarized above is discussed

in the succeeding paragraph.

Raw Materials Procurement

The owner will buy the coconut from Manong Litos Sari-sari Store in
Compostela Public Market where the production site is situated. The baking soda
will be bought from the nearest public market.
Shredding the coconut
Split the coconut into half and drain the milky liquid of the coconut. Using
the coconut grater, the coconut shells is held towards the ridged part of the grater
and turn the handle in order to move the other end of the grater which would help
in grating the coconut.
Extracting the coconut milk
Add a cup of warm water in every grated coconut (1:1). Using the muslin
cloth and hand gloves, squeeze directly over a bowl. Repeat until all of the grated
coconut has been squeezed. For the second extraction, another cup of water is
added and the procedure is repeated.
Filtering
To insure that the no shredded coconut is mixed into the milk, filtering is
needed. Using the strainer or muslin cloth, pour the coconut milk over another
container with a lid. Repeat procedure until all coconut milk has been filtered.
Converting the coconut milk into oil
To make the coconut oil, boil the coconut milk. Place it in a saucepan on a
burner and turn the heat to medium high. Bring it to a boil and cook, stirring

constantly, until the water has evaporated and the cream has separated from the
oil and turned brown.
Mixing with other ingredients
To make a 20g of deodorant, melt the beeswax first. After liquefying, mix
1/8 cup of coconut oil, 1/8 cup of cornstarch, 1/8 cup of baking soda, 5
tablespoon of beeswax and 5 drops of lavender essential oil. Do it in a very slow
speed as possible until achieved the desired results.
Packaging and Storing
The resulting mixture will then be packed in 20g stick deodorant container
and ready for distribution.

RAW MATERIALS

The determination of the source of raw materials is one of the important

activities during the pre-operating period. This is necessary to acquire quality
materials at minimum cost.
The project shall obtain the coconut from Manong Litos Sari-sari Store
located at Compostela Public Market, the lavender essential oil from Somera
(located at: Level 1, Ayala Center Cebu) , the cornstarch and baking soda can be
obtained from Carbon Market on a per kilo basis, and lastly, the beeswax is from
Carbon Market.
Coconut

A coconut meat which has been shredded or flaked.

It is composed of medium chain fatty acids (or
Triglyerides) which help keep skin smooth and
moisturized by trapping the escaping moisture from
pores. Most of the medium chain fatty acids found in coconut oil are lauric acid,
which is only found in as high as concentrate in human breastmilk. This powerful
acid actually helps increase immunity and fight infections, which makes it
essential to our daily diets. Coconut oil may be useful as a deodorant because it
is antifungal, antibacterial, antiviral and anti microbial.
Baking Soda
A white crystalline compound, NaHCO 3, with a slightly alkaline
taste, also called (bicarbonate of soda, sodium bicarbonate).
These ingredients are known for its odor eliminating effects, it
neutralizes acids and odor causing bacteria in the body. As a
bonus it can also help lighten skin in darkened armpits.
Cornstarch
Starch prepared from corn grains, used industrially and as
a thickener in cooking. It is also known to absorb wetness
in underarms.
Beeswax

A natural wax produced in the bee hive of honey bees of

the genus Apis. Beeswax is a popular ingredient in many
natural skin-care products, and it has this magical property
wherein liquid oils remain in a solid state at much higher
temperatures when mixed with it. It helps to stabilize this recipe so it isnt sticky
due to the coconut oil. Beeswax is another inherently excellent choice in skincare
products, as it does not clog pores, but it does help the moisturizing properties of
the butters and oils in this recipe to lock into your skin so they can do their jobs.
Lavender Essential Oil

Lavender oil, which has long been used in the production of

perfume, can also be used in aromatherapy. The scent has
a calming effect which may aid in relaxation and the
reduction of anxiety and stress. Lavender is great for skincare due to its
antiseptic and antifungal properties which help to reduce scarring and speed up
healing. Lavender essential oil is used to treat various skin problems. This herb is
widely used in beauty products and fragrances due to its various skin benefits.

PRODUCTION CAPACITY

Business is not only about making sales. You need to know very well the
capability of your business to meet the demands of the market. One thing that
needs to be given great attention is the production capacity. Production capacity

is the volume of production using the available resources in a specific time

period.
Given the aforesaid time-frame of production, the proposed project will
have the capacity to produce 30 units of 20g of Coconut Oil Deodorant per day,
respectively.
Table 2 shows the capacity of the proposed product to for five years. In the
first year, the normal business operation will start by January 2015. To compute
the first year of production capacity, the daily production capacity of 30 units of
20g deodorant is multiplied by the number of working days from January to
December. So, 30 units would be multiplied by 250 operating days which would
have a production capacity of 7,500 units during the first year. In the succeeding
years, 30 units would be multiplied by 250 working days annually except for the
year 2016 which would have a 252 working days.
TABLE 2
Production Capacity for Five Years

Production Capacity
2015

2016

2017

2018

2019

7, 500

7, 560

7, 500

7, 500

7, 500

PRODUCTION LOCATION

The location of the production site is a vital key of successful operations.

Several factors need to be considered in the choice of the production site. A
clean and peaceful area, the proximity of raw materials and the target market
were considered in the recommendation of the site.
The proposed plant site will be located at MQAE Residences, Hika
Poblacion, Compostela, Cebu. The size of the area to be rented is 49 square
meters. (rental price of Php 8,000, two months advance, two months deposit)
The site is being recommended because it is close to the sources of raw
materials and would require a minimum cost of delivery to the target market.

PRODUCTION
LOCATION

MAP OF CEBU

Production Location Sketch

STRUCTURES/BUILDING LAYOUT
Scale 1:100
5.0625

STORAGE AREA FOR TOOLS AND RAW

MATERIALS

1.625

4.625
Shredding

PRODUCTION Cooking
AREA

1.625

Mixing

Extracting
Filtering
1.625

STORAGE AREA
FOR FINISHED
GOODS

PACKING AREA

6.5

1.625

0.375

TOILETS
3.5
1.625

0.75

OFFICE
SHELVES/DISPLAY AREA

Production Site Layout

Layout is a graphic drawing or illustration which shows the topographic
setting & physical arrangements that organized the facilities used in the business
enterprise.
A layout should be properly designed to achieve optimum use of the place
as well as allows employees to carry out their task conveniently and fast.

UTILITIES

Utilities are essential services that a business must be able to rely upon in
order to succeed. Public Utilities provide an important commodity or service,
such as water, electricity, transportation, or communication, to the public. It gives
benefits in the business operation respectively in the production of proposed
product and for operability and profitability.
Water Supply
It is one of the primary utility requirements of our deodorant business. It
will be use in cleansing the hands before and after the production of our
deodorant which we named as Cocodeo, used for the extraction of the coconut
milk, washing of other raw materials and also for the tools used. The source of
our water will be the Metropolitan Cebu Water District (MCWD) in order to assure
a good water supply for the performance of every task and to ensure the safety
of our valued buyers.

Electricity
It will be necessary for the proper and smooth operation of our business.
This will also set the atmosphere of the store for its proper lighting, ventilation
and ambience. The electricity will be provided by the Visayan Electric Company
(VECO.
Telecommunications
Telecommunications is a form of communication that is said to be
necessitous to the duration of our business which is called Cocodeo, as one of
newest in the market, need these so called telecommunications in order to have
a clear and proper negotiation with suppliers and especially with the customers
regarding their feedbacks, suggestions, recommendation and other customer
concerns that can help and contribute to the business growth, development and
profitability.
Fuel
As what Wikipedia define, it is a flammable mixture of hydrocarbon gases
used as a fuel in heating appliances, cooking equipment, and vehicles. We will
be using this for cooking purposes and as well as for vehicle fuel. As for the
cooking, this will be used in heating the coconut milk in order to convert it into
coconut oil. We will also be using this to fuel our vehicles which will be used in
picking up the purchased materials and supplies needed and also for the delivery
of our finish product to the different distributor, since it is more economical than
petrol, diesel and other source of power.

WASTE MANAGEMENT DISPOSAL

One of the main goals of our study is not just to prioritise the safety and
satisfaction of our customers but also to utilize the raw materials that we will be
using. Through utilization we can create another product or expand a new
business that would surely bring another source of income. Since our product is
all about coconut oil deodorant, we will be making use of the coconut fruit itself.
The first part of it is the coconut husk, instead of just throwing it we can sell it to
those people who are engaged in crafting and charcoal making. The second
thing is the coconut water that will be extracted; it will be sold to interested
buyers. And for the grated coconut, it can be sold to those who go for livestock
raising, it has been said that grated coconut can be a substitute for their feeds.
All spilled out residues and ingredients will be cleaned and disposed of
immediately. The owners will also strictly implement waste segregation by
providing trash bins for biodegradable and non-biodegradable wastes inside the
production area as well as inside the store since the production area and the
store is just in one place. These shall be disposed every day.
At the end of the day, the workers should observe proper waste disposal
management. They should always keep their work place clean and orderly. Tools
and equipment used should be cleaned accordingly so as to avoid any
contamination of the product. The owners should also examine the work place
every day before closing and opening the store. Everyone is encouraged to
strictly comply with the set of standards in cleanliness specifically with the proper
disposal and management of waste.