PROVINCIAL GOVERNMENT OF NUEVA VIZCAYA

Manual of Operation
(Packaging and Labeling Services)

Shared Service Facility (SSF) Project

Year 2018
 Packaging and Labeling Services Operations Manual

Title Page Number

Introduction
Scope
Definition of Terms
Organizational Structure
Responsibility Assignment Matrix
Range of SSF Services
Accessing Service(s) of the SSF
Schedule Operating Hours and Fees
SSF SWOT
Administrative and Financial Arrangements
Preventive Maintenance System
Risk Management Plan

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I. Introduction

The processed food sector in the Province of Nueva Vizcaya derives its strength

from the large volume of agricultural produce, the steady growth in food products

and the continually growing food demand fueled by rising income. Industry

limitations that plagued the processed food sector across the province include

limited packaging and/or labelling solutions to meet local and national market

requirements, and the high cost of establishing this kind of business/facility (i.e.

packaging and labeling center) that consequently contributes to the low investment

index of the aforementioned industry. This, in turn, limits the provincial’s ability to

enhance locally made products’ quality to meet food safety laws and Philippine

standard labeling requirements that lean towards the increasingly discriminating

consumers, both local and national markets.

Developing a packaging and labeling service provision, specifically in label

designing and printing, will provide a much-needed boost to the packaging and

labeling requirements of local micro-, small-, and medium- enterprises (MSMEs) in

the province. This will not only lend affordability in the labeling requirements of the

stakeholders in the processed food sector but will likewise improve the feasibility of

these local products to market channels thereby strengthening MSMEs in the entire

province.

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The establishment of a Provincial Packaging and Labeling Services center will

pacify the effects of market failures existing in the province’s processed food sector.

This is one of the solutions in bridging the gap (i.e. labeling requirements) of local

MSMEs in penetrating potential markets (e.g. groceries, malls, exportation).

However, the problem in securing a license in the Foods and Drugs Administration

(FDA) is one of the extreme predicament facing the provincial’s processed food

sector. It is therefore proposed that, under the Provincial Packaging and Labeling

Services center, a Business Development Service, focused on FDA registration of

local MSMEs, be included as part of the center. This simplified service model will

further boost development and sustainability of local MSMEs in the food sector.

Thus, improving local MSMEs’ competitiveness.

The Department of Trade and Industry Nueva Vizcaya Provincial Office have

proposed the establishment of a “Provincial Packaging and Labeling Service” that

bridged the gap on the labelling requirements for MSMEs in the Province of Nueva

Vizcaya.

The Shared Service Facility (SSF) Project is a major component of Department of

Trade and Industry (DTI’s) Micro, Small and Medium Enterprise (MSME)

Development Program and aims to improve the competitiveness of MSMEs by

providing them with machinery, equipment, tools, systems, skills and knowledge

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under a shared system. The project is being implemented economy-wide with

partners including Non-Government Organizations (NGOs), people’s organizations,

cooperatives, industry/trade associations, local government units (LGUs), and state

universities/colleges. The project aims to accelerate MSME’s competitiveness

through practical tools and training, and by helping them upgrade and upscale.

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II.Scope

Pursuant to Article III, No. 5 of the Shared Service Facility (SSF) Memorandum of

Agreement (MOA) between the Department of Trade and Industry Nueva Vizcaya

Provincial Office and the Provincial Government of Nueva Vizcaya, specifically the

Provincial Cooperative Affairs Office (PCAO); the latter SHALL operate and

manage the SSF in accordance with this “Manual of Operations”. This manual of

operation includes: Introduction; Scope; Definition of Terms;

Organizational/Functional Structure of the SSF Project; Responsibility Assignment

Matrix; Range of SSF Services; Procedure in Accessing the Service(s) of the SSF;

Schedule of Fees and Other Changes; Business Plan including

communication/marketing plan; Administration and Financial Arrangement;

Preventive Maintenance System; and Measures to recover expenses incurred for

the misuse of the SSF by the BENEFICIARY.

Article III, No. 10 of the same Memorandum of Agreement likewise requires the

Cooperator to submit to the DTI Nueva Vizcaya periodic reports pertaining to the

SSF operation and financial condition using the Monthly Accomplish Report Form,

Monthly Monitoring Form and Annual Evaluation Study, shown as Annex “A”, and

“A-1”.

The said labelling services will cater the needs of Nueva Vizcaya micro-, small- and

medium- enterprises, particularly those MSMEs that lacks the capacity to procure

their labeling requirements.

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III. Definition of Terms

The following are some of the terms used in this Manual of Operation:

1. Priority Industry Clusters. Refers to the prime industry clusters as

recommended by the Department of Trade and Industry (e.g. coffee, cacao,

bamboo), whose microenterprises and SMEs will be qualified to receive the

SSF.

2. Shared Service Facility. Refers to machineries, tools and equipment for

common use by the beneficiaries thru the cooperators that comply with the

selection/standard criteria set by the Department of Trade and Industry.

3. Labeling Services. Refers to the services of the cooperator relative to the

labeling requirements of micro-, small- and medium- enterprises (e.g.

design of labels and printing of labels)

4. Micro, Small and Medium Enterprises.

 Micro Enterprise. Refers to enterprise or business activity with

asset size of not more than Three Million Pesos (P 3,000,000.00).

 Small Enterprise. Refers to enterprise or business activity with

asset size of more than Three Million Pesos up to Fifteen Million

Pesos (Above P 3.00 M – P 15.00M).

 Medium Enterprise. Refers to enterprise or business activity with

asset size of more than Fifteen Million Pesos up to One Hundred

Million Pesos (Above P15.00M-P100.00M).

(Total assets, however, exclude the value of land owned by the enterprise)

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5. Cooperator. Refers to any juridical entity such as but not limited to Non-

Government Organization, Peoples Organization, Cooperative, Industry/

Trade / Business Associations and Academic Institution.

6. Non-Government Organizations (NGOs). Refers to a non-profit, voluntary

citizens' group which is organized on a local, national or international level.

7. Beneficiaries. Refers to microenterprises and SMEs belonging to the

identified priority industry clusters of DTI that shall avail the services of the

SSF.

8. Print and Cut Machine. Refers to a machine that prints and cut to large

sheet of strong and flexible material (e.g. vinyl tarpaulins, sticker labels

sheets) to produce label sheets of MSMEs.

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IV. Organizational Structure

This organizational structure is designed to define task allocation, coordination

and supervision towards the achievement of project objective(s). This

organizational structure will facilitate the labeling services of the said project.

Hence, below is the most appropriate structure that would instigate the

maximum usage of the cut and print machine.

In order to have a smooth implementation of the SSF, the Cooperator shall

adopt, as applicable the Organizational Chart (recommended) shown in figure

below.

Project
Coordinator

Label Printing
Label Design Administrative
Service
Consultant Services
Processor

Since the cooperator categorized under the Local Government Institution(s), it

would be voluminous to create a separate organizational structure of the said

project. It is therefore recommended that other staff from the Provincial

Cooperative Affairs Office (PCAO) would designate additional functions to

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existing plantilla positions or their equivalent work force within their

organization.

Duties and Responsibilities of Staff

Project Coordinator

The Project Coordinator will be in-charge with the overall operations of the

labeling services program. He/she will supervise the effective and efficiency

of work operations of the labeling services. Further, he/she will establish

wide range of network to colleges, universities, non-government institutions,

national governments and the local government units in order to bring

resources (financial and non-financial) and commitment to the Labeling

services. He/she will direct the future plans of the labeling services of the

province.

Label Design Consultant

The Label Design Consultant will take responsibility in exploring new

grounds in label designs including market research and development to

bring new and sustainable solutions that unlock opportunities for Nueva

Vizcaya products and services to become key players in the market arena.

He/she should have a wide array of knowledge on label designs applications.

This person(s) brings culture and consciousness to every Novo Vizcayaños.

He/she will advocate the relevance and importance of good design in

creating human-centered products and services that support business

innovation, environmental sustainability, social inclusion, and economic

growth.

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Label Printing Service Processor

This person will be in-charge in printing the label design(s) as required by

MSMEs/clients; he/she will also recommend the most appropriate

material(s) in their clients’ label design(s). He will also take precautionary

measures in maintaining the cut and print machine. Furthermore, he will also

update applications necessary in label printing services.

Administrative Services

This support staff will oversee the financial transaction of the labeling

service facility

Ownership Structure

The Labeling equipment which is provided by DTI as SSF equipment shall

be used by the Cooperator (Provincial Government of Nueva Vizcaya) under

a Usufruct agreement which shall form part of the Memorandum of

Agreement (MOA) for a time period as provided in the MOA. DTI shall

provide insurance for one (1) year from the date of execution to cover for

loss or damage to the machinery/equipment due but not limited to fire, theft,

flood, earthquake, or other fortuitous event. The cooperator may take out

insurance to cover its loss in case of loss or damage to the SSF.

After a period of two (2) years wherein the Cooperator has demonstrated the

successful operation of the SSF, DTI may opt to transfer ownership of the

SSF to the Cooperator based on government rules on the

transfer/disposition of properties.

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V. Responsibility Assignment Matrix

Shown in the table below is the Responsibility Assignment Matrix between

the DTI Nueva Vizcaya and the Provincial Government of Nueva Vizcaya.

Responsibility Assignment Matrix

(Provincial Labeling Services)

DTI Nueva Vizcaya Provincial Government of Nueva

Vizcaya
 Provide the SSF Equipment (i.e.  Provides Counterpart Support
cut and print machine) (Building and Site, Operating
 Provide Technical Support Capital and Personnel)
 Help Promote the use of SSFs  Promotes the use of SSFs
 Assists in recommending the  Prepares the Schedule of Fees and
Schedule of Fees and Other Other Costs, and Collection
Costs
 Retain ownership and 1 year  Custodianship including Upkeep,
insurance coverage Safe- keeping, minor repair and
maintenance
 Exercise visitorial Rights  Periodic Reporting (Monthly
Physical and Financial Reports)

VI. Range of SSF Services

The following are range of services of the SSF Project (Nueva Vizcaya Labeling

Services) shall render to the existing & potential MSMEs, academes, industry

players and others as maybe identified by the cooperator, as follows:

 Label Research and Development;

 Label Design Services; and,

 Label Design Printing Services.

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VII. Accessing Service(s) of the SSF

Generally, the following shall be observed for the smooth

operation/management of the Shared Service Facility:

1. Priority shall be given to micro enterprises, over small and medium

enterprises;

2. Adopt the First In-First Out (FIFO) policy

3. Submission of client request (Simple Work Order Form/Client Logbook) to

Project coordinator to access the service(s) of the facility.

4. The table below shows the process flow in accessing the services of the

SSF, to wit:

Process Flow in
Accessing Services of the SSF

Steps SSF Cooperator’s Responsible

Client’s Steps
No. Staff Action Person
Fill up request for use Provide request Project
1 of the facility or client form/client logbook Coordinator
log book
Receive filled out
Forms. Verify the
completeness of the
Submit Duly
information from the
Accomplished
submitted forms and
Form(s) including Project
2 forward the request to
product development Coordinator
the label consultant
information sheet and
designer for execution
company profile
of label design or to
the technical staff for
label printing
Label Design
Consultant or
Comment on label Make necessary
3 Label Printing
design outputs adjustments; finalize
Service
Processor

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Hand over the label

Receive the final label designs/printed
design output; pay the label(s). Issue official Administrative
4
required service fee receipt. Provide Client Service
Satisfaction Feedback
(CSF) Form.

VIII. Schedule Operating Hours and Fees

The table below shows the operating schedules of the provincial labelling

services, to wit:

Day Time Activity

Monday 8:00am – 5:00 pm
Tuesday 8:00am – 5:00 pm Label design(s)
development and/or
Wednesday 8:00am – 5:00 pm
printing of label
Thursday 8:00am – 5:00 pm design(s)
Friday 8:00am – 5:00 pm
The schedule may vary depending the urgency or needs of clients.

Service Fee
Based on output based computation (i.e. cost accounting), the following are

suggested service fees, however, this rates may change depending on the cost

drivers of the facility.

Name of Rate (PhP)

Equipment/Service MSMEs Other than MSMEs
Print & Cut Machine 0.45 per square inch 0.48 per square inch
300 – 500, depends on 300 – 500, depends on
Label Design the complexity of the the complexity of the
design(s) design(s)
Tarpaulin Printing 15 per square foot 20 per square foot

IX. Business Plan

Marketing Plan

1.1 Industry analysis

1.1.1 SWOT Analysis

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The SWOT analysis is a structured planning method used to

evaluate the strengths, weaknesses, opportunities and threats

involved in a business, during business planning or product

development. Below is a SWOT analysis on the Provincial Labeling

Services.

Strengths

 Future contributions, such as:

o Economic development through entrepreneurship and

invention

o Education and workforce development

o Local community and public access to technology and

individual empowerment

 Uniqueness of the Provincial Labeling Services

o Open access at grassroots level

o Development of entrepreneurial culture and different

ways of thinking

o Experimentation to make new things

o Idea and information exchange

Weaknesses

 Aversion, resistance to new ideas and technology

 Finding the right people to operate the Provincial Labeling

Services may pose a challenge

 Assurance of financial sustainability

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Opportunities

 Technical resource development and information sharing

 Resource generation

 Increased visibility of Nueva Vizcaya

 Conduct of research and generation of impact data

 Outreach to other SUCs in the region

Threats

 Funding

 Lack of awareness and misconceptions about Labeling Services

 Poor management and leadership of the Labeling Services

management

 Lack of relevancy

 Failure to connect to intended beneficiaries

1.1.2 Potential and Target Markets

Generally, the project desires to assist and support the creative

industry of the region by providing them with state of the art product

development technology and equipment, specifically the print and

cut machine.

The project will enable local designers in partnership with local

MSMEs to come up with high value and high quality product labels

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that can then be taken up to commercial production by the MSMEs.

The facilities can also further assist MSMEs through short run

production of label prototypes which can be used for market testing

before full blown commercial production.

More particularly, the project would assist the following:

1.1.3 Market segments

 Micro, small and medium enterprises (MSMEs) in the priority

industry sector and other clients as identified by the cooperator

 MSMEs that are DTI-SSF Program and other National Agency

beneficiaries

 Potential and existing entrepreneurs

1.1.4 Competition and Substitute Products

The project will enjoy a virtual monopoly in terms of the

services offered because it will be the first in the province.

Marketing Strategy

The Nueva Vizcaya will have a ready captive market in the province,

especially the micro-entrepreneurs. In addition, main target markets

will be industry associations, designers and artist groups, and the

general public.

Promotion, Advertising, Distribution and Sales Strategy

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The MSMEs and the general public are the ones that will be

specifically targeted to avail of the services of the labeling services.

The promotional strategy for the service, marketing channels to use,

the manner of communicating to customers and the promotional

strategy will be aligned to the market segments. There will be

separate pricing schemes for other clients other than MSMEs (see

pricing strategy above).

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Budgetary Requirements
Shown in Table 5 below is the estimated budgetary requirement to operate the

Provincial Labeling Service SSF Project.

Table 5
Proposed Budgetary Requirement
(Including Pre-Operating Expenses and the Cost of SSF)

Cooperator Counter Part

Item Cost
BNR Permit (DTI), optional (they may ₱ 1,030.00
use the permit of the PLGU
Cooperative’s permit)
Mayor’s Permit 3,000.00
Electricity Bill (Monthly) 3,000.00
Water Bill (Monthly) 50.00
Facility Renovation/Office Setup 500,000.00
Consumables and other accessories 80,000.00
Sub-Total ₱ 587,080.00
DTI Counter Part
Item Cost
Print and Cut (Huge Scale Printer), VS
₱1,000,000.00
640i
Sub-Total ₱ 1,000,000.00
TOTAL ₱ 1,587,080.00

X. Administration and Financial Arrangement

1. Visitorial Rights of the DTI and the Commission on Audit (COA)

The Department of Trade and Industry Nueva Vizcaya and the Commission

of Audit reserved the rights to audit the said facility upon due notice the

cooperator.

2. Monitoring, Evaluation and Impact Assessment

The cooperator shall prepare and maintain a periodic (monthly) reports for

its physical and financial operation using the Monthly Accomplishment

Report Form and Monitoring and Evaluation Report shown as Annex “A and

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A-1”, respectively. The monthly reports of the cooperator shall be collected

by the DTI Nueva Vizcaya Provincial Office

The evaluation on the impact of the SSF shall be done every six (6) months

by an external Monitoring and Evaluation consultant with the

assistance/cooperation of the DTI regional and provincial offices and with

inputs provided by the cooperator and its beneficiaries. Evaluation shall be

geared towards the determination of the Project’s efficiency and

effectiveness through the following outcome indicators:

 Number of micro enterprises and MSMEs assisted;

 Number of jobs created;

 Sales generated; and

 Investments generated.

3. Acknowledgement Receipt for Equipment (ARE)

Shown in Annex “B” is the Acknowledgement Receipt for the set of

Equipment (Shared Service Facility) assigned to the cooperator.

XI. Preventive Maintenance System

Preventive maintenance is the systematic care and protection of tools,

equipment, machines, etc. in order to keep them in a safe, usable condition,

limit downtime and extend productivity. In order for the longer use of an

equipment the operator must keep them in clean condition after use to prevent

any damage caused by natural wear and tear and by reactions from dirt or raw

materials left on them.

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In addition, the cooperator should always refer to the Operational Instructional

Manuals of the Shared Service Facility provided by the various suppliers.

Everyday inspection is needed to prevent various damage or any other possible

negative effect to the user.

XII. Risk Management Plan

A risk is any event that could prevent the project from progressing as planned,

or from successful completion. Risks can be identified from a number of

different sources. Some may be quite obvious and will be identified prior to

project kickoff. Others will be identified during the project lifecycle, and a risk

can be identified by anyone associated with the project. Some risk will be

inherent to the project itself, while others will be the result of external influences

that are completely outside the control of the project team. The Project

Coordinator has overall responsibility for managing project risk. Project team

members may be assigned specific areas of responsibility for reporting to the

project coordinator. Throughout all phases of the project, a specific topic of

discussion will be risk identification. The intent is to instruct the project team in

the need for risk awareness, identification, documentation and communication.

Risk awareness requires that every project team member be aware of what

constitutes a risk to the project, and being sensitive to specific events or factors

that could potentially impact the project in a positive or negative way. Risk

identification consists of determining which risks are likely to affect the project

and documenting the characteristics of each. Risk communication involves

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bringing risk factors or events to the attention of the project coordinator and

project team. The project coordinator will identify and document known risk

factors during creation of the Risk Register. It is the project coordinator’s

responsibility to assist the project team and other stakeholders with risk

identification, and to document the known and potential risks in the Risk

Register. Updates to the risk register will occur as risk factors change. Risk

management will be a topic of discussion during the regularly scheduled project

meetings. The Provincial Labeling Services project team will discuss any new

risk factors or events, and these will be reviewed with the project coordinator.

Accordingly, the project coordinator would adopt a risk management/response

of risk identified.

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Annex “A”
Provincial Government of Nueva Vizcaya
SSF Accomplishment Report
For the Month of _______, 2019

Date the Jobs Generated**

Type of Sales Investment***
Name of MSMEs Assisted Assistance
Assistance Generated* Direct Indirect Generated
Rendered
MSMEs
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Others (Non- MSMEs)
1.
2.
3.
4.
5.
6.
Remarks:

* Sales generated is measured as a positive result of the SSF Assistance.

** Jobs generated is measured as an outright economic benefit to the client(s)
*** Investment Generated pertains to the additional capital infusion as a result of the SSF Services

Prepared by:
______________________
Cooperator

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Annex “A-1”

Provincial Government of Nueva Vizcaya

SSF Monthly Monitoring Report
For the Month of _______, 2019

A. SSF Equipment
SSF Equipment Description

B. Status of the SSF Equipment

_____ Operational
_____ Non-Operational due to:
____ Lost
____ Damaged
____ Others, please specify _________________________________
Remarks

C. Status of Operation
List of SSF Date Type of Fees
Output Remarks
Equipment Used Service(s) Collected

Prepared by: Monitored by:

________________ __________________

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Annex “B”
Provincial Government of Nueva Vizcaya

FACILITY SERVICE REQUEST FORM

Control No.
_________
Date:
______________
TO: ______________________
(SSF Center Officer)

In behalf of ________________________may we use your Shared Service Facility

Center as our venue for our:
Hands on Training
Research and Development
Label Design Consultancy
Product Labelling
Others, Specify: ______________________________________________

Our preferred schedule starts on ______________ to __________________. We fully

understand and agree with your terms and conditions on the use of your Shared Service
Facility Center. Thank you.

________________________
Name and Signature of Client

Action Taken
Verified availability of SSF Center:
On the date(s) requested.
Fully booked, for rescheduling.

_____________________________ _______________________
Name and Signature of Project Officer Name and Signature of FabLab
Manager

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