TECHNICAL STUDY

After having determined the market size and area, product demand and growth, the potential and technical feasibility of the project may be analyzed. This stage deals with the allocation and distribution of resources that will be needed on order to satisfy the market. The technical soundness analysis will be considered complete if all pertinent technical aspect of the project have been taken into account in the analysis and if the planned construction or procurement conforms to accepted standards and practices. The estimated cost of the project should be as low as any other reasonably available alternate which would produce the intended results. The objective of this portion of the feasibility study is to determine to what extent the project meets the technical soundness criteria. Prior to projecting technical feasibility, the technical requirements of the project must be analyzed. This may be done by:

A. Stating: The quantity and quality of products to be sold The specification of supplies/materials to be used The labor needed The utilities needed The waste disposal methods Transportation necessary Plant location Plant size and layout Machinery and equipment Production schedule Transaction process B. Providing estimates of total project cost and enumerating the major items of capital cost. C. Listing down in detail estimated production or service cost and overhead cost that will go into the operating of the proposed plan.

D. Taking into consideration any major technological development in the industry which may affect the commercial or technical soundness of the project. Once the technical requirements have been prepared, the project proponent is ready to analyze technical feasibility.

Objectives o to identify the kind of service and variety of products the proposed business have including its description and procedure, o to determine the process to be used in obtaining the products and how to distribute or deliver it to the market, o to describe the geographical location of the business, o to illustrate the store size and store layout of the business, o to determine the supplies needed and all necessary machineries and equipments to be used in the operation of the business, o to determine where to acquire the supplies and necessary utilities for the operation of the business, o to define the human requirements and regulations of the business, o to know the methods of waste disposal for the maintenance of the store.

A. Product Description Mighty Hardwares products are tangible and ready-to-sell items. This means that the proposed business acts as a wholesaler industry.

A.1 Time Motion Study (inside the store) Customer in, choose product and buy. Payment given to the counter. (26 min) Counter will take the order (30 sec)

A.2 Time Motion Study (via telephone) Call, pick up choice (5 min) Preparation of product (17 min) If pick-up (time is variable) If delivery (from preparation to start of travel: 12 min).

B. Business Process Mighty Hardware will be operating at 12-hour basis starting from 8 am to 8 pm. The supervisors and all other employees are required to have time-off at exactly 9 pm or few minutes above for cleaning, restoration, fixation, and keeping purposes of necessary items for the preparation for the next days operation. All employees and the manager must be inside the store 30 minutes before the opening for necessary requisites and preparations before transactions. Emergency grace periods are also inclusive of the said 30 minutes preparation.

C. Business Location

Vicinity Map

Site Location Proper

Site Specs

Building 1 (Lot 76)

D. Machineries and Equipment

Item IBM POS Cash Register

Function Use to input sales and keep the money safe temporarily

Quantity 2

Unit Cost 16,200

Total Cost 32,400

Computer Sets

Use to store and record data

13,490

13,490

Printer

Use to print files and documents

5,000

5,000

Ceiling fans

Used as temporary coolers in the 2nd floor.

1,000

4,000

E. Furniture and Fixtures Chairs Use for cashiers and other workers Fluorescent Lights As lighting inside the building Filing Cabinet Used for files and documents Computer Desks Use for office workers. A placement for computers 1 10,000 10,000 1 20,000 20,000 10 458.5 4,585 6 500 3,000

F. Office Supplies Ballpen Used in writing important details or documents Record Books Used for recording important notes Calculator Used for computation Stapler Used to compile files Staple Wire Thermal Paper/Cash Register Tape Bond Paper Used for stapler Used to provide receipt to the customers Used for documentation purposes 2 ream short 2 ream long 170 each 185 each 340 370 10 boxes10.50 9 10.5 35 105 315 5 32.50 162.5 3 70 210 15 48 720 30 6 180

I. Utilities Requirements I.1.Electricity It is one of the primary utility requirements of the building. Mighty Hardware will need this for its proper and smooth operations and for the business to carry out their operations especially in transaction purposes. The store electricity will be provided by the ANECO management as different expense. I.2. Water Supply As the restaurant executes its operations, it needs a good water supply in order for them to continuously do their job and tasks. A good water supply can able them to perform tasks such as cleaning the raw materials to ensure safety of the customers. Water Supply payment will also be provided by the Butuan City Water District (BCWD) Management as different expense. I.3. Telecommunications Telecommunications is a form of communication that is said to be indispensible to the duration of a business of Mighty Hardware, 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, orders, recommendation and other customer concerns that can might help and contribute to the business growth, development and profitability. Telecommunications will be provided by the BayanTel as different expense.

Waste Disposal Method Our customers are always our priority. We would like to give them a one hundred percent satisfaction and the maintenance of cleanliness in all areas of our store is included in the customer requirements. So, Mighty Hardware encourages all the members of the organization especially we are inside the agricultural zone to strictly comply with the set of standards in cleanliness specifically with the proper disposal of waste. Mighty Hardware will provide two big trash bins in the back area with cover and proper label for segregation will be observed to assure the safety on the preparation of our products. There will be one small trash bin in the counter area as well as in the office. The

accumulated garbage per day will be collected by the city sanitary trucks. This kind of system will be continually observed in our day to day operation.

K. Direct Labor Requirements People are considered to be the lifeblood of any business organization. They are very important for the business to operate effectively and efficiently. Mighty Hardware will need a full - time employee. In the operation, it needs a total number of manpower in the site, 1 manager and 5 employees. They are the ones who will perform the functions of following positions:

K.1. Work Schedule Store Hours: 8:00 am to 7:30 pm plus pre-closing of 30 minutes. Pre-closing time allows the final customers to exit, thus, last catering is until 7:30 prompt. Hours of Operation: 12 hours of operation Maximum of 10 employees needed