TECHNICAL ASPECT

In this most crucial part of the study, we will shed light on the feasibility of our proposal

in terms of technical aspect. Here, the factors can directly affect the effective and efficient

operations of SNACK PRO VENDING. In this chapter, we will be presenting the basic operation

flow as well as the equipment, materials, supplies and other increments for the efficient and

effective operations of the business. Business plans, utilities, facilities, layout designs, and

location are also discussed in this chapter.

Service Description

The SNACK PRO VENDING is a 24-hour Fully Automated Mini Mart that will have

automatic machines that would allow people to purchase items like snacks or drinks. These will

be machines that can take bills or coins as well as automated touchscreen loading stations for the

customer. The branch will be manned by a cashier whose main role is to provide change or help

with technical difficulties that the machines might encounter. Do-It-Yourself (DIY) foods like

hotdogs, donuts, coffee, soft ice cream, and coffee will be readily available in-store.

31
 Fig 1. Proposed building for Snack Pro Vending

Business Location, Service Size and Capacity

In choosing we have considered a lot of factors. But the major aspect we had to consider

was its accessibility and the population of our target market in the neighbouring barangays. We

have also considered the type of people that usually pass by the area and evaluated whether or

not they may patronize a mini mart or not.

32
Vicinity Map

Fig 2. Vicinity Map for Snack Pro Vendings business location.

The proponents believe that the best place to build the establishment is along Sitio

Alimasag, Brgy. 88, San Jose, Tacloban City. This is because it is known as a virtual terminal

for commuters from the DZR Airport and the nearby barangays as well as a constant

establishment you can pass by if you are coming from San Jose going to Marasbaras or onwards.

The vehicles available for our target market is also available 24 hours every day so it is a great

location. Aside from that, as a virtual terminal, it can serve as a one top shop for travellers

waiting inside the airport terminal. The location is also close to residential areas in San Jose. It

rarely has any traffic and the loading and unloading stop is very close to the location. The area

with the star symbol is the exact location of the proposed business establishment.

33
 Table 14

Service Schedule

Snack Pro Vending

2017 2021

YEAR DAILY WEEKLY MONTHLY ANNUALLY

2017 99 693 3,021 36,255
2018 117 819 3,571 42,847
2019 126 882 3,845 46,143
2020 135 945 4,120 49,430
2021 181 1,267 5,493 65,918

Table 14 shows the daily, weekly, monthly and annual service schedule. It can be

observed that for 2017, the daily customers the business may be able to accommodate is 99 with

a weekly count of 693. For a whole month on 2017, the proponents expect up to 3, 021

customers which will give them an annual count of 36,255. The pattern will have an increasing

manner for five years until it maximizes the annual service capacity of 65,918. The figures above

are approximations only and may subject to change based on the economic development of

Tacloban City.

34
 Table 15

Sales Schedule

Snack Pro Vending

2017 2021

YEAR DAILY WEEKLY MONTHLY ANNUALLY

2017 99 693 3,021 36,255
2018 117 819 3,571 42,847
2019 126 882 3,845 46,143
2020 135 945 4,120 49,430
2021 181 1,267 5,493 65,918

Table 14 shows the daily, weekly, monthly and annual service schedule. It can be

observed that for 2017, the daily customers the business may be able to accommodate is 99 with

a weekly count of 693. For a whole month on 2017, the proponents expect up to 3, 021

customers which will give them an annual count of 36,255. The pattern will have an increasing

manner for five years until it maximizes the annual service capacity of 65,918. The figures above

are approximations only and may subject to change based on the economic development of

Tacloban City.

35
Service Process

How The Automated Mini Mart Operates:

As soon as a customer enters the establishment, the services and products will be

available to choose from. Customers will just have to pick the items or service they want to use

and pay the price on the counter or by feeding the money to the machines itself. As per the

registration and use of the membership cards as well as how to operate and buy products and

services from the machines, please refer to the processes below:

Easy Steps For Buying/Using Vending Machines:

First timer/s (Non-Members):

1. The customer choose the vending machine he wants to use.

2. He must choose an item or service he would like to avail.
3. He must feed the coins into the machine. If he will use bills, he must make sure the bills

are not very crumpled for easier feed.

4. After feeding the money, he must click the button of the item or service he has chosen.
5. For vending machines, the item he chose will automatically fall into the claim box. If the

customer used the loading stations, he must wait for the confirmation message on the

screen.

First timer/s (Members):

1. The customer choose the vending machine he wants to use.

2. He must choose an item or service he would like to avail.
3. Scan the prepaid card and wait for the beep. This means the transaction has been

authorized and points has been deducted.

4. Once the beep is heard, he must click the button of the item or service he has chosen.

36
 5. For vending machines, the item he chose will automatically fall into the claim box. If the

customer used the loading stations, he must wait for the confirmation message on the

screen.

Easy Steps For Buying Items From The Racks:

First timer/s (Non-Members):

1. He must choose an item or service he would like to avail.

2. Take the items to the counter for scanning and payment.
3. Pay the amount.

First timer/s (Members):

1. He must choose an item or service he would like to avail.

2. Take the items to the counter for scanning and payment.
3. Give your membership card to process payment.

NOTE: In the event that the vending machines stops working, it will be opened and temporarily

work as an ordinary fridge. In case of a system maintenance of the prepaid cards POS, notices

will be put up and will temporarily accept cash as payment from the members but will get a

certain rebate for their purchases.

37
 Service Flow Chart

Snack Pro Vending

START

38
 Land

As soon as the customer enters the and

He must choose an item or service he
establishment, The customer choose
Building would like to avail.
the vending machine he wants to use

Snack Pro Vending has chosen a location along the road of the Brgy Alimasag, San Jose,

Once payment is made, he must click
the button of the item or service he
selected.
Tacloban
He must feed the coins into the
City just
machine. If he will use bills, he must
make sure the bills are not very
across crumpled for easier feed. For members,
they must scan their prepaid card to
the process payment.

Daniel

Z. Romualdez Domestic Airport. It is measure at 484 sq. metre and costs Php 5,000.00 per

square

meter.
If service is availed, he must wait for
The customer must wait for the items
The cost the confirmation message on the
to fall into the claim box.
screen.
for the

building
END
is estimated at Php 2,420,000.00.

Table 16

Depreciation Schedule of the Building

Snack Pro Vending

TOTAL AMOUNT USEFUL LIFE SALVAGE VALUE ANNUAL

39
 DEPRECIATION
1,375,000.00 30 years 575,000.00 26,667.00

The table above illustrates the depreciation schedule of the building that will be useful for

30 years. As shown, the salvage value of the building is Php 575,000.00 and the annual

depreciation is Php 26,667.00. To get the depreciation, we have subtracted the salvage value

from the total amount and divided it by 30 years.

40
 Table 17

Office Equipment, Furniture and Fixtures

Snack Pro Vending

USEFUL
QT PRICE/UNI SALVAGE ANNUAL
ITEMS TOTAL LIFE
Y T VALUE DEPRECIATION
(YEARS)
Snack/Cand

3 y Vending 157,300.00 471,900.00 25 47,190.00 13,213.20

Machine
Beverage

3 Vending 214,500.00 643,500.00 25 64,350.00 18,018.00

Machine
Coffee

2 Vending 258,500.00 517,000.00 25 51,700.00 165,44.00

Machine
Coin-

3 operated 15,500.00 46,500.00 15 4,650.00 2,170.00

Computer
Charging
2 7,500.00 15,000.00 15 1,500.00 800.00
Station
Loading
2 20,000.00 40,000.00 15 4,000.00 2,133.33
Station

1 Microwave 3,600.00 3,600.00 9 360.00 360.00

41
 Showcase
1 107,000.00 107,000.00 11 10,700.00 8,754.55
Refrigerator
Soft Ice

1 Cream 83,000.00 83,000.00 7 8,300.00 10,671.43

Machine
Slush
1 45,000.00 45,000.00 7 4,500.00 5,785.71
Machine

2 Steamer 17,000.00 34,000.00 9 3,400.00 3,022.22

Computer
1 12,500.00 12,500.00 15 1,250.00 750.00
Unit

1 Plasma TV 18,000.00 18,000.00 9 1,800.00 1,800.00

Point of Sale
1 15,000.00 15,000.00 15 1,500.00 900.00
System
Split Type

1 Air 27,000.00 27,000.00 10 2,700.00 2,430.00

Conditioner

1 Sala Set 45,500.00 45,000.00 12 4,500.00 3,416.67

Plastic
3 1,900.00 5,700.00 15 570.00 266.00
Tables
Plastic
9 700.00 6,300.00 10 630.00 63.00
Chairs

2 Food Rack 2,500.00 5,000.00 12 500.00 333.33

Filing
1 5,500.00 5,500.00 50 550.00 99.00
Cabinet

1 Electric Fan 1,200.00 1,200.00 10 120.00 108.00

42
1 Office Table 2,000.00 2,000.00 12 200.00 150.00

1 Office Chair 3,000.00 3,000.00 8 300.00 337.50

It is presented in Table 26 are the office equipment needed for the company to function

efficiently and effectively. Furniture and fixtures will also be purchased for the lounge and

general beautification of the establishment. It can be observed that the items purchased have

been resented together with the salvage value as well as the annual depreciation because the

information will help in the financial aspect.

Utilities

To help the smooth flow of the business, utilities are also needed. Electricity, water,

telephone and internet are essentials that must be installed for the business. Below are the list of

expenses and the cost of each per month.

1. Electricity. The electric power will be provided by LEYECO II. Installation of

the electricity will be Php 6,500.00 including the wiring and this will only be a

one-time charge. The monthly bill will be Php 7,200.00 and will increase by 5%

to utilize the full capacity of the business. To make sure the operation will be

uninterrupted by power failure, back-up generator will be purchased that will cost

around Php 35,000.00. The salvage value for this will be at Php 3,500.00 and will

have a life span of 15 years with an annual depreciation of Php 2,100.00.

Maintenance will be at Php 5,000.00 per year.

2. Water. The water supply will be provided by LMWD. The installation charge of

Php 5,000.00, including the PVC and other connection within the building will be

paid one time. The monthly bill will be at Php 5,500.00. A water pump will also

43
 be back up in case of water interruption. This will be costing around Php

7,500.00 with a life span of 12 years; salvage value is at Php 750.00 and the

annual depreciation will be at Php 562.50. Maintenance cost for this will be at

Php 3,000.00 annually.

3. Telephone and Internet. The telephone and internet will be necessary for the

computer rental and the loading station. A Wi-Fi and internet connection shall be

supplied by Globe Telecom. Monthly subscription will be at Php 1,500.00.

44
 Table 18

Utilities

Snack Pro Vending

TOTAL
UNIT ANNUAL
SOURCE/ MONTHLY MONTHLY
UTILITY COST COST
S CONSUMPTION COST
(Php) (Php)
(Php)

Water LMWD 500 cu. mm. 11.00 5,500.00 66,000.00

LEYECO
Electricity 800 Kwh 9.00 7, 200.00 86,400.00
II

Communications Globe
---- ---- 1,500.00 18,000.00
and Internet Telecom

TOTAL 14,200.00 170,400.00

It can be observed that in Table 27, the annual utility expense for 2016 will be Php

170,400.00 including the water, electricity and communications services.

45
 Table 19

Annual Utilities Expense

Snack Pro Vending

TOTAL
COMMUNICATIONS
ELECTRICIT UTILITIES
YEAR WATER AND INTERNET
Y EXPENSE
(Php)
(Php)

2017 66,000.00 86,400.00 18,000.00 170,400.00

2018 69,300.00 90,720.00 18,000.00 178,020.00

2019 72,765.00 95,256.00 18,000.00 186,021.00

2020 76,403.25 100,018.80 18,000.00 194,442.05

2021 80,223.50 105,019.75 18,000.00 203,243.25

In Table 28, we have presented the annual utility expense for a period of five years that is

from 2017 to 2021. It has been agreed that there will be a 5% increase every year for the utilities

expense, aside from Communications and Telephone bills because of the unstable prices of oil

that affects the electric bill.

46
 Table 20

Annual Insurance Expense (Php)

Snack Pro Vending

2017 2018 2019 2020 2021

Calamity/Fir
500,000.00 575,000.00 661,250.00 760,437.50 874,503.13
e Insurance

In Table 28, we have presented the annual insurance expense for the year 2017 until

2021. It is assumed that the annual premium that will be paid will increase 15% every year. This

is to accord with the increase of inventory every year.

47