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Documente Profesional
Documente Cultură
Introduction
After identification of the target market, and analysis and evaluation of the
different factors that influence the proposed business, EALA Inc. brings form
and structure to the proposal by identifying its technical aspects.
This principle is the central focus of the entire technical process. From the
raw material selection and design conceptualization to the actual production
process and visualization of the structural designs and perspectives,
everything about PantSaloon would translate to comfort, fashion and
individualism.
The initial stage of PantSaloon’s business plan involves opening its first store
at J&R Commercial Center in Katipunan. With over 75 fabrics, 11 cuts, 16
pocket types, 4 waistband types, and infinite possibility of designs,
PantSaloon will produce 600 different jeans per month, meeting about 6.37%
of the projected demand. PantSaloon shall strive to acquire a larger share in
the big “pie” over the years, as the business gradually makes a name in the
jeans market.
With much care and consideration given to the plans, projections, procedural
requirements and legal practices needed in setting up the store, EALA Inc.
deems PantSaloon technically feasible and operational in the market.
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A. Executive Summary
Through the analysis of the crucial processes and costs involved in production
flow, human resources management, store operations and construction, and
legal requirements to be complied with before operation, EALA Inc. endeavors
to determine the technical feasibility of PantSaloon.
What the group has done is to study the process of manufacturing jeans, and
from here build the production program which PantSaloon shall adhere to in
its quest to produce perfectly-fitted jeans. In the course of building this
production program and establishing PantSaloon’s own production process,
decisions on outsourcing, supplier selection, and equipment to be used had to
be made.
The first major decision was whether to outsource tailoring services, or to hire
personal tailors and invest in jeans manufacturing equipment to produce the
jeans. A cost-benefit analysis on these two options led to the conclusion that
hiring in-house tailors and investing in equipment, while more costly, is better
for the business in the long run because it will enable the business live up to
its promise of producing high quality and perfectly fit jeans, with quality
control better exercised when production is done in-house.
Accordingly, the store structure has also been designed to reflect what the
PantSaloon experience would be all about. The group plans to maximize 25
square meters of less expensive but well-visited leased space in J&R
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Commercial Center, located just beside Shakey’s and McDonalds-Katipunan.
An all-white industrial interior, complemented with splashes of color shall
further enhance PantSaloon’s idea of adding twist to something basic.
Designed with modern minimalist comfort, the space will cater to the needs
of its customers, their companions, and the store employees. Construction
and renovation costs would reach approximately P 293,629.00 while total
monthly operating costs are estimated to amount to P 316,266.67.
Before the business can be fully operational, the mayor’s office has to issue
the business an official permit to operate. Before this issuance however,
certain legal requirements such as barangay clearance, community tax
clearance, sanitary permit, and other clearances have to be secured.
Finally, rough estimates of all required costs were summed up to find out the
initial investments and operating funds needed to run the PantSaloon
boutique.
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Capacity refers to the attainable rate of output that can be produced. EALA
Inc.’s plant capacity largely depends on the number of jeans a tailor can
make per month.
PantSaloon shall invest in a total of three sewing machines, with exactly one
tailor stationed at each machine. With this, a tailor can manufacture a
maximum of 10 jeans per day, or 900 jeans per month (30 working days).
This theoretical capacity was obtained under the assumption that all the
equipment will function properly throughout the entire 8 hours of work and all
three tailors will work for 7 days a week, with no day-offs. However, since the
store will be giving tailors two day-offs per week, only two tailors are
expected to report to work each operating day, reducing the production
capacity to 67%, or 600 jeans per month.
The store will maintain the production volume rate required to meet 6.37% of
the projected demand throughout the ten years. The increases in demand will
be offset by gradually increasing capacity utilization.
A. Production Volume
4
Production will be based on the projected annual demand and the computed
market share in the Market Appraisal. To get the production volume, the
projected annual demand for PantSaloon products was multiplied by the
market share that EALA Inc. can meet given its present capacity. The figures
are shown below:
A. Product Design
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PantSaloon believes that when it comes to jeans, fit is everything. Handmade
and carefully crafted, each pair of jeans aims to provide a fusion between
fashion and comfort by producing jeans that are not only individualistic,
stylish and hip, but also tailored to perfection.
Jeans will be the central theme of PantSaloon’s product line, with designs as
diverse and dynamic as its different customers strive to keep up with the
swiftly changing world of fashion. As mentioned before, PantSaloon shall
present a wide array of fabrics, cuts, styles and designs to ensure that the
store has something for everyone. The challenge to PantSaloon now is to
deliver every pair of jeans in its finest quality – perfect stitching, premiere
fabrics, and flawless fitting that makes it distinguishable from every other
pair in the market.
1. Cuts
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The cut refers to the actual shape of the jeans. It is a matter of pattern
design. Not all fits work with all possible cuts. Some combinations may
seem to work today (a possible trend), but in a few years, may just
look funny or dated. Still, this is where the fun begins. No amount of
washes or embellishments can make up for a bad cut.
This is probably the most important styling decision. Leg cuts that
PantSaloon will offer can be summarized as follows:
• Straight Leg Jeans: Traditional cut with a straight narrow leg
that does not flare at the ankles
• Flared Leg: Jeans narrow at the knee, and an extra wide flare at
the leg. Most common leg type on low rise jeans.
• Boot Cut Jeans: Cut to skim the thigh with a slightly flared lower
leg
• Tapered Leg: Jeans narrow towards the ankle
• Capri: A leg cut that usually ends just below the knee or at
midcalf. The term "crops" is sometimes used interchangeably with
capris, but should actually refer to pant legs that fall about three
fourths of the way down the calf
• Tight / Skinny: A close fit throughout the leg
• Stove Pipe: As the name implies, an oversized straight leg cut
• Bell Bottoms: A wider, more exaggerated flare named and
made popular in the 1960’s, often used with low rise jeans and
ultra low rise jeans
• Cropped: Jeans can be cropped any length from the midcalf to
the knee. Ankle Length Cut just above the ankle is used for a
summery look
• Gaucho: Denim gaucho pants may be a passing fancy, but they
sure are fun and can look great paired with the right boots.
• Cuffed: A fold at the end of the legs. Not strictly a leg cut, but a
common finish, sometimes added by the designer and sometimes
by the user of the jeans for a personal touch.
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Straight Flared Boot Cut Tapered Tight Capri
Figure 1 | Denim cuts available at PantSaloon
2. Fit
Fit refers to the general “looseness” or “tightness” of a pair of blue
jeans. Fits that PantSaloon shall offer on its opening include the
following:
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• Tight / Skinny: An upcoming, edgy trend. Tight fit through-
out.
3. Fabrics
The selected cut can only be perfected and achieved if the right fabric
is selected. To avoid problems in the construction of pants, the in-
house designer must advise the customer early on which fabric will
work best for the design they are looking for. Because designs are
expected to be diverse, PantSaloon intends to have a wide array of
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fabrics to choose from. PantSaloon will likewise make certain that they
will procure the finest fabric at the most reasonable prices.
Fabric for pants can range from twill and suede, to corduroy and khaki.
However, as mentioned before, special attention shall be given to
denim, as jeans will be the product specialty of PantSaloon.
Specifically, PantSaloon’s fabric line will include the following:
• Canvas
• Army
• Denim - Ordinary
• Denim - Stretch
• Corduroy
• Twill
• Suede
4. Pocket Types
Some pocket type options include:
• 4-pocket: No change pocket
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• Flap Pocket: Can be very flattering on a woman with a small
rear
• Front Patch Pocket: Attached to the exterior of the pants
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Jeans with waistlines that are cut higher in the back, and lower in the
front, are figure-flattering. The most flattering jeans have 1% to 2%
Lycra or spandex in it. This elasticity allows them to hold everything in
place without totally sacrificing comfort.
The back yoke allows designers to play with perceptual illusions that, if
used for the right reason, can enhance the look. The size and shape of
the back yoke directly affects the size and placement of the rear
pockets, and this is crucial.
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No Yoke With
Inverted Arc Straight "V" Shape Sweet Heart Wide Yoke
Seamed Pockets
6. Fly Types
• Zippered Fly
• Button Fly With Hidden Buttons
• Button Fly With Exposed Buttons
• Laced Fly
7. Waist Types
The most obvious variation in waist type comes in the “rise”, which
means nothing more than how far below the belly button the jeans will
sit. It is measured from the crotch to the waist. Some designers use
this as a major styling category, because of the unparalleled popularity
of low and super low rise jeans in the last few years. It is nonetheless a
subcategory of the type of cut.
• Regular Rise Jeans: Waistband is located precisely on the
waist
• Low Rise Jeans: Waistband is located typically 2-3 inches
below the belly button. The most popular rise in most denim
brands, especially for women.
• Super Low Rise Jeans: Dangerously low, 3-5 inches below the
belly button.
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• Brazilian Low Rise Jeans: Brazilian jeans have almost come to
define a waist type of their own: Ultra Low Rise Jeans. Brazilian
jeans are growing in popularity and are renowned for their
daring sexy cuts, high quality, and original embellishments.
They are unique and worth looking into.
8. Embellishments
While there are those who are satisfied with simple, unadorned jeans,
there are also those people who like embellishments on their pants. A
variety of materials have been selected to provide ornamentation to
jeans. These materials include the following:
• appliqués
• patches
• beads
• embroidery
• sequins
• rhinestones
• Swarovski crystals
• metal studs
• lace
9. Sample designs
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Figure 6| medium wash peacock embroidered
jeans
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Figure 7| dark natural vintage patch bootcut
jeans
Figure 8| medium wash beaded jeans
16
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Pants come in a variety of fabrics, and which among these fabrics to be used
is actually the choice of the customer. However, not all fabrics are suitable for
pants. Only when a fabric achieves an over-all tailored look does it become
appropriate for pants. These fabrics include corduroy, canvas, denim,
leather/suede, twill, and woolen tweed. While all these are readily available at
the store, jeans are PantSaloon’s specialty. Henceforth, an extensive denim
fabric line shall be arranged.
Any other fabrics not immediately available in the store can be requested for
or brought in personally by the customer.
Likewise, threads, buttons, rivets, zippers, labels and other accessories add
value to the pants. Threads to be used are those which have an established
reputation of strength, buttons and rivets are those which don’t tarnish
immediately, and zippers should glide smoothly. Other accessories such as
beads, crystals, and embroidery shall be unique and interesting in order to
maximize the possibility of making each pair of jeans unique.
1. Suppliers
Suppliers of raw materials will come from Divisoria, since they have an
abundance of textiles, fabrics and other materials needed in the
production of jeans. Aside from the overwhelming variety, these
materials also come in very affordable prices.
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However, for other materials such as threads, buttons, zippers, and
embellishments, only a couple of suppliers will be selected, since
product offerings are similar and the price differences are insignificant.
The only difference between suppliers lies in the depth of their product
lines, and hence, the two suppliers with the most complete and diverse
lines would be selected.
The following are some of the possible suppliers who can provide the
necessary materials needed for production input:
Table 2 | Possible suppliers
MATERIAL SUPPLIER ADDRESS CONTAC
T NO.
Fabrics M & P Commercial 107 Ylaya Center 247-
market, 593 CM 4617
Recto Ave, Divisoria
Good Morning Pasilio C, Stall no. 245-
Textile 72-74, Ent. 577-585, 2478
CM Recto Ave., 245-
Divisoria 5194
Bull Magic Pasilio A, Stall No. 245-
Merchandising 14-16, Ent. 488-491, 0142
CM Recto Ave.,
Divisoria
Supplies Marwin Trading 601 CM Recto Ave., 245-
Tondo, Manila 2517
Fashion Rev 577 General 245-
Shopping Center, 0128
Divisoria
Embellishmen Carolina’s Lace Pasilio S Stall No. 9, 241-
ts Shoppe 14, 16, Yangco 8284
Market, Divisoria 243-
1740
Label Los Amigos & Sons, 928 Ilaya St. Tondo, 245-
Inc. Manila 0267
244-
5266
245-
0252
Paper Bags Plaza de Amigos LS -03 Tutuban Prime 252-
Block Center, Tondo, 2122
Manila 253-
4928
0917-
8117500
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Credit terms and discounts on transactions between PantSaloon and all
the abovementioned suppliers will be included in the terms of
agreement between the company and the respective supplier, and
determined on a per transaction basis.
C. Production Arrangements
1. Cost Benefit Analysis
In-house manufacturing
Advantages. PantSaloon promises its customers a perfect fit all the
time, and it is important for the business to get everything right in
order to preserve the integrity of its name. The main advantage of in-
house manufacturing for the business is the close supervision of the
pants-making process. Being a business that banks primarily on
quality, this is a very important consideration. Closely supervised
manufacturing will allow for constant quality checks to ensure that the
jeans are being made exactly the way the customer wants it.
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Aside from excellent quality control, in-house manufacturing also
provides control over deadlines and production schedules. Delays can
be avoided, since everything that needs to be delivered is on hand.
Also, worries over late deliveries can be completely eliminated. The
production schedule can move exactly as planned or be changed
immediately to meet deadlines, since all aspects of production are
under the control of the management.
Outsourcing
Advantages. Outsourced production will rid the business of the costs
brought in by purchasing and maintaining equipment and other
auxiliary materials such as thread, etc. It would also reduce overhead
costs of the business, since expenses for electricity, warehousing, and
inventory will not be shouldered by the company. There would also be
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a significant cut in the salary expenses allocated for tailors and cutters,
as the business would no longer need to hire them. Furthermore, costs
of training will be completely eliminated.
Analysis
Because PantSaloon banks highly on the quality of jeans it produces,
the company deems in-house manufacturing more suitable for its
operations. While investment costs could pile up initially, the long-term
benefits of in house manufacturing far outweighs the initial outlay.
Furthermore, since PantSaloon promises to produce jeans that are
exactly to the customer’s liking, attention to detail is necessary, and
this can only be done properly if the company engages in in-house
manufacturing.
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Table 3| Cost Benefit Analysis
IN HOUSE SUBCONTRACTING DIFFEREN
Pre- production PRODUCTION Production CE Production
Post
OPERATING COSTS
VARIABLE COSTS
Direct Materials
Fabric 31,124 31,124 0
Thread 264 0 264
Zipper 1,962 0 1,962
Buttons 210 0 210
Rivets 325 0 325
Labels 3,000 3,000 0
Total Direct Materials 36,885 34,124 2,761
Direct Labor 0 50,000 -50,000
Indirect Labor (washing) 15,000 15,000 0
Total Variable Cost 51,885 99,124 -47,239
FIXED COSTS
Direct Labor 48,000 0 48,000
Factory Overhead
Factory Supplies
embellishments 3,000 3,000 0
Depreciation of
Equipment 416.67 0 416.67
Utilities 9,090 6,630 2,460
Repair and Maintenance 0 0 0
Insurance 1,875 0 1,875
Total Factory Overhead 14381.67 9630 4,751.67
62,381.6
Total Fixed Cost 7 9,630 52,751.67
114,266.
TOTAL OPERATING COSTS 67 108,754 5,512.67
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Costing
a. Pre-production.
The pre-production stage involves all the necessary procedures before
the actual construction of the jeans.
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After the design has been selected, materials for the construction of
the jeans will be selected. Fabrics will be catalogued so that the
customer can actually get a feel of the fabric. Threads, buttons, zippers
and embellishments can be selected by the customer in a separate
catalogue. During this procedure, the designer advises the customer on
which fabric will work for a particular design, and which materials
would adhere to the selected fabric. This is to minimize adjustments
and reproductions during the production process.
1 – crotch
2 –
length
3 – waist
4 – hips
5 – thighs
6 – knee
7 – hem
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3
After the key measurements are taken, the tailor then encodes the
design, material and measurements into the special computer software
to simulate the over-all look of the jeans on the customer. Final
adjustments on the design are made at this point, after which the
design is finalized and submitted to the cutter to start the production
process. The customer is also given a specific finishing date, when he
or she would come back to claim and fit the jeans.
b. Production
The production process begins with serging or cutting the fabric in a
zigzag manner to avoid raveling. The jeans shall then go to the master
cutter and be cut. When cutting out the pattern, a withnap cutting
layout is used, and facings are cut from lining or contrast fabric in order
to reduce bulk.
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Heavyweightdenim 100/16
needle
Mediumweight denim 80/14 needle
Lightweight 75/11 needle
Denim needles, having longer, sharper points that penetrate the close
weave of cloth more easily, and larger eyes that accommodate
decorative topstitching thread, will be purchased for best results. As for
threads, polyester or cotton-wrapped polyester thread will be used for
standard sewing, while decorative threads will be used for topstitching.
Denim can be sewn with a standard 5/8" (1.6 cm) seam. However, most
denim garments feature flat-fell and topstitched seams. Stretch denim
requires a stretch stitch. The most popular denim seam is the flat-fell
seam because it’s very durable and gives a nice, clean finish on the
inside of the garment.
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most popular types of garment closures on denim. Hems are most
often stitched by machine with one or two rows of narrow topstitching.
c. Post Production
After the jeans are priced, they will be stored in the storage units
located within the store premises. No more additional warehousing is
needed, as these jeans will not be stored for long periods of time.
When the customer comes back on the specified delivery date, jeans
are given out for fitting. Because PantSaloon assures that jeans are
always a perfect fit, any flaws duly faulted to the failure of the business
to meet quality standards shall be altered for free, and the jeans will be
sold for 50% off the original sale price. Once the alterations are
finished, the jeans can finally be taken home and enjoyed by the
customer.
Steps DAYS
1 2 3 4 5
Design conceptualization
Materials selection
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Measurements
Design simulation and adjustment
Serging
Cutting
Sewing
Seam finishing
Topstitching
Closures and Hems
Additional designs
Quality inspection
Production adjustments
Costing and pricing
Storage
Delivery
Fitting
Alterations
Final delivery
3. Costing
Table 6| Direct materials
Cuts (1.25
yards per unit total
Fabric kinds cut) price unit order unit total
per
Canvas 10 3 108 yard 37.5 yards 4050
Army 4 3 120 15 1800
Denim - Ordinary 9 3 108 33.75 3645
Denim - Stretch 8 3 76.8 30 2304
Corduroy 22 3 120 82.5 9900
Twill 20 3 100 75 7500
Suede 5 2 154 12.5 1925
31,1
24
Thread
white 35 per roll 4 rolls 140
colored 31 4 124
264
Zipper
per
7" 5.3 piece 100 pieces 530
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8" 5.5 100 550
per
YKK 7" 180 dozen 3 540
YKK 8" 114 3 342
1,96
2
Buttons
per
USA 60 order 2 orders 120
Metal 90 1 90
210
per
Rivets 65 order 5 orders 325
per 3,00
Labels 0.6 piece 5000 pieces 0
Table 7| Supplies
per
Shears 150 piece 4 pieces 600
L-square 220 1 220
Curved Ruler 220 1 220
Tape Measure 30 2 60
Embellishments 3,000
Dummy Jeans 250 2 500
4,600
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Table 8| Monthly Production Costs
Variable
Direct Materials
Fabric 31,124
Thread 264
Zipper 1,962
Buttons 210
Labels 3,000
Rivets 325
Total 36,885
Indirect Labor (Washing) 15,000
Total Variable Costs 51,885
Fixed
Direct Materials
embellishments 3,000
Direct Labor (wages)
tailor 36,000
cutter 12,000
Total Direct Labor 48,000
Indirect Labor
designer 20,000 68,000
Rent Expense 12,500
Depreciation of Equipment 416.67
Utilities
electricity 8,390
water 700 9,090
Transportation 3,000
Repair and Maintenance 0
96,006.6
Total Fixed Costs 7
147,891.
Total Production Costs 70
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V. Store Operations
A. Organizational Structure
Chief
Executive
Officer
Human
Finance Operations Marketing
Resources
Manager Manager Manager
Manager
Market
Jeans
Accountant Cashier Designer Cutter Researcher/
Engineers
Purchaser
1. Functions
Chief Executive Officer
General Function: in-charge with the overall management of the firm
Duties and Responsibilities:
• Formulates overall policy for PantSaloon
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Finance Manager
General Function: In-charge of investment and financing decisions for
EALA Inc.
Duties and Responsibilities:
• Takes charge of the budgeting, capital allocation, and cost
control
• Handles credit management
• Forecast funds
• Allocates dividends and incentives
• Prepares long-range plans which include capital budgeting
decisions on expansion, replacement, etc., and cost
appropriations
• Determines the financing mix and sources of funds optimal to
the needs of the firm
• Coordinates with the accountant and cashier regarding the firm’s
financial status
Accountant
General Function: In-charge of generating financial reports and
documents to the stockholders and regulatory agencies
Duties and Responsibilities:
• Handles bookkeeping responsibilities
• Prepares financial statements
• Prepares payroll for employees
• Handles the receivables and payables account
Cashier
General Function: In-charge of daily sales transactions
Duties and Responsibilities:
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• Gives receipt to customer after every payment of purchase
• Calculates daily sales
• Assists Operations Manager in generating monthly sales report
• Turns over daily sales to the Finance Manager
• Acts as receptionist inside the store
Operations Manager
General Function: In-charge of the overall management of the
production and operations
Duties and Responsibilities:
• Manages the store’s daily operations
• Generates monthly reports on sales, inventory, utilities, and
other necessary items concerning the store
• Receives and records incoming supplies delivered to the store
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• Acts as the cashier whenever the cashier is out
• Assists the cashier and designer in dealing with customers in
periods of high customer traffic
• Performs quality checks
• Updates finished jeans checklist on a daily basis
Designer
General Function: In-charge of conceptualizing designs for PantSaloon
Duties and Responsibilities:
• Studies the latest trend in denim jeans
• Submits designs subject to the approval of the managers
• Handles pre-production procedures such as getting customers’
measurements and recommending fabric type and style of the
jeans as well as post-production procedures like checking the fit
of the jeans to the customers and deciding whether it needs
alteration
Cutter
General Function: In-charge of cutting the fabric for each denim jeans to
be sewed
Duties and Responsibilities:
• Cuts the fabric for each jeans after the customer’s vital statistics
are measured
• Assists the designer in getting customers’ measurements in case
of high customer traffic
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General Function: In-charge of sewing denim jeans
Duties and Responsibilities:
• Sew denim jeans
• Assist the designer in getting customer measurements
• Alter denim jeans whenever applicable
Marketing Manager
General Function: In-charge of marketing activities for PantSaloon
Duties and Responsibilities:
• Formulates marketing strategies such as product, pricing, place
and promotional strategies for PantSaloon to gain a favorable
share of the market
• Evaluates PantSaloon products’ market performance
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• Assists and coordinates with the marketing manager in studying
and investigating PantSaloon’s closest competitors
• Forecasts appropriate pricing scheme
• Assesses demand and supply forecast
• Handles purchasing of raw materials
• Ensures the replenishment of production supplies
2. Qualifications
Since the business is just starting, the qualifications of the officers would
be simple enough for them to do their functions in the organization.
Finance Manager
• Male/female
• Must be a graduate of any business course, preferably
major in Finance
• Must be familiar with investment management and
analysis
• Must be familiar with financing, loan and credit
management
Accountant
• Male/female
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• Must be a Certified Public Accountant
• Must be hardworking and willing to work long hours if
necessary
Cashier
• Male/female
• Must have attained at least 2 years of any college or
vocational course
• Must possess good communication skills in English and
Filipino
• Must be customer-oriented and with pleasing personality
• Must be trustworthy in handling daily sales
Operations Manager
• Male/female
• Must be graduate of any undergraduate degree, preferably
any business course
• Must possess excellent communication skills in English and
Filipino
• Must have strong leadership skills to manage subordinates
• Must be customer-oriented
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• Preferably has knowledge and experience in apparel
business
• Must be willing to work long hours if deemed necessary
Designer
• Male/female
• Must be graduate of Clothing Technology or any related
course
• Must be creative and full of innovative ideas
• Must be customer-oriented
• Work experience is an advantage
Cutter
• Male/female
• Highly-skilled in cutting fabrics for denim jeans
Marketing Manager
• Male/female
• Must be graduate of any business course, preferably major
in Marketing
• Must be familiar with the apparel industry
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• Knowledgeable in advertising and marketing
communications strategies, consumer behavior, product
and brand management, distribution management, and
other marketing principles
• Must be updated with the latest fashion in denim jeans
• Must possess excellent communication skills in English and
Filipino
All newly hired applicants will be asked to submit NBI, Police, and
Barangay Clearances. They must also have their SSS numbers and
submit a medical certificate stating that they are fit to work.
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4. Compensation and Benefits
The company shall follow the compensation package outlined below:
Table 9| Compensation Package
Position Monthly Compensation
CEO PHP 35,000 plus shares in the
company
Operations Manager PHP 25,000
Finance Manager PHP 22,000
Human Resource Manager PHP 22,000
Marketing Manager PHP 22,000
Accountant PHP 18,000
Cashier PHP 12,000
Market Researcher PHP 18,000
Jeans Engineers PHP 12,000
Master Cutter PHP 12,000
Designer PHP 20,000
Salaries will be paid every 15th and 30th of every month. Salary
increases will be dependent on the current year’s performance.
Jeans engineers or tailors are entitled to two days off from work. The
schedule was designed to ensure that there are at least two tailors
present in the store every working day.
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B. Daily Operations
To give time for store preparation and clean up, the call time for all
employees is 30 minutes before the opening time.
During weekdays, the store opens at 11:00 am, while store hours begin at
10:00 am on weekends. At these hours, the Operations Manager, cashier and
designer are expected to be at the reception area, attending to customers. In
the meantime, the cutter and two jeans engineers are expected to be found
at the workroom behind the store, making the jeans.
The store’s policy will be on a first come first served basis. This means that
the customer who arrives first shall be first in line with the designer’s or
cashier’s services, whichever he or she might need.
Once a customer gets his consultation turn with the designer, the first matter
of consideration will be the cut and style, followed by selection of fabric. The
fabric is selected from a fabric catalogue so that the customer is able to get
the feel of the fabric. He or she will also be advised as to what fabric will work
best for the selected cut and design. After the fabric has been selected, any
additional designs shall be selected.
The designer shall then take the measurements of the customer, and encode
the design, fabric and cut to the special software program that simulates the
over-all look of the jeans. Tailors/jeans engineers can also take the
measurements of the customer when store traffic is high. The design
undergoes necessary adjustments before finalized and submitted to the
master cutter.
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Only after performing all these services, shall the designer move on to the
customer next in line.
The cashier situated at the cashier’s counter is first expected to show the
voucher to the customer and confirm item/s listed in the receipt. Once the
customer agrees, the cashier tallies the amount and announces the total
payment required. As soon as the customer hands the payment to the
cashier, the cashier should read out to the customer the amount of the
transaction and the payment received. The cashier should count the change
out loud to the customer. The copy of the voucher is kept for recording of
daily sales. After payment, the items will be placed inside a paper bag and
the cashier should thank the customer. This way the buyer will recognize
PantSaloon to be a boutique that has honest, warm, and courteous
employees.
During lunchtime, the employees will take turns at having lunch. If there is no
customer to assist, all employees in the store are expected to keep the place
neat, clean, and orderly. The store closes at 8:00 pm on weekdays and 8:30
pm on weekends. Before leaving, the store must be cleaned and the cash
must be balanced by the cashier. The cash for the day will be handed to the
Operations Manager who will, in turn, deposit it in the bank. If, for any reason,
the cash is not balanced then it should immediately be reported to the
manager.
1. Scheduling
Scheduling is one of the most important tasks of store management,
yet it is often one of the most neglected. Many Operations Managers
simply repeat the same schedule each week, neglecting to analyze
changes in store traffic
43
time for cleaning, stock replenishment, and cash wrap counter
preparation. Furthermore, breaktime during lunch should also be
scheduled to ensure that there are employees to attend to customers
during the lunch hours.
44
2. Policies on Tardiness and Absences
All employees will be required to be at the store at 10:30 am during
weekdays and 9:30 am during weekends. They would be considered
late if they come 15 minutes after the call time. Any fraction after that,
they will be considered under time and there would be a corresponding
deduction from their pay. An overtime cannot offset an under time. An
employee will only be allowed to be late for a maximum of three times
per month. Should they exceed, a memo will be issued to call their
attention.
In the event that they would absent themselves from work, they must
call before or one hour before the call time to inform the Operations
Manager of their absence. All store employees will only be allowed a
maximum of one absence every month. Should the maximum be
reached, a memo will be issued to call their attention. An absence
without leave will be considered a serious offense. A memo will be
issued upon returning to work.
4. Inventory Management
Since all of PantSaloon’s products are custom-made, fabrics will be the
only items in the business’ inventory. Even then, the fabrics that the
45
store shall keep in its inventory will only be for purposes of keeping
safety stocks. When the store runs out of a certain kind of fabric, the
purchaser is in-charge of replenishing this stock. The average rate of
replenishment is once a month, because the amount of fabric kept in
storage is a close approximation of monthly demand.
5. Cash Management
For the first few years of operations, PantSaloon shall make use of
vouchers / sales invoices as proofs of payment. Payments will be in
cash, and kept at a safety deposit box placed under the careful
supervision of the cashier.
The store will have an opening fund in the safe of P2,000 in different
denominations:
6. Sales Management
A daily sales report is made to keep track of merchandise and account
for every peso received. This report would aid the Operations Manager
in monitoring what items are in demand and what are slow-moving.
Orders for stocks and sales trends can be easily determined because of
this. The boutique will be able to order those materials that are fast-
moving and will not have the error on ordering those that are hardly
saleable.
7. Store Expenses
Rental. Monthly rental statements will be issued by the building
operator to the operations manager, who in turn is responsible for
checking the accuracy of all the information and figures written on the
statement. Affixing his signature on the bottom portion of the
statement signifies that the statement has been screened and
reviewed. The rental statement is finally faxed to the Accounting
Department for payment processing.
47
Electricity and Water. The electricity and water charges will be
incorporated in the rental statement. The operations manager ensures
that the consumption readings of each are reviewed and tallied against
the previous month’s reading.
Petty Cash. A petty cash fund of P500 shall be allocated for the
business. They are not required to finish up the entire funds, and are
even encouraged to minimize spending, without sacrificing operational
efficiency.
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Design Objectives:
• To be able to meet all the client’s necessities and wishes
• To be able to come about with a design that would attract customers in
and keep them coming back
• To be able to translate the concept of the clothing line to the
boutique’s interior
• To be able to design a space that would make for comfortable fitting of
jeans
• To be able to make a design that would cater to the comfort of both
clients and employees
• To be able to create a vibe conducive for generating creative ideas for
jeans
1. Initial Location
PantSaloon shall be located at the second level of J & R Commercial
Center in Katipunan, Quezon City. The proposed space, 25 square
meters big, is currently unoccupied and is available for leasing
anytime.
50
Figure 14| Proposed Shop Location
51
52
shall be pushed away to the sides to make room for movement across the
store. Also, furniture will be kept at a minimum, extending only to the
receiving/waiting area sofas and table.
Lighting. The lights that will be installed inside the store are bright
white lights that further accent the whiteness of the scheme. They will
also help in getting an accurate view of the jeans, and provide further
contrast to the colored pieces of furniture within the store. Moreover, a
square glass floor lamp shall be situated at one corner of the sitting
area to serve as additional lighting, accent piece and decoration. All
the lights will be strategically positioned to highlight the different
portions of the store.
The fitting room should be comfortably big, so that customer will have
room to move around and turn without feeling cramped. The hooks by
53
which they would hang their clothes would likewise be big and ample,
so that the customer does not run out of space to hang their clothes.
Cashier Counter. The cashier counter shall contain the logo of the
store, and be located at the right of the customer upon entering the
store. The counter is strategically positioned to observe all the
activities happening within the store. It will contain the cash safe,
vouchers and the phone, for entertaining store inquiries.
Work Area and Stockroom. The work area and stock room shall be
located at the back of the store concealed from the customer’s view by
a curtain wall. All the equipment for working and storage are pushed to
the sides, thereby facilitating free movement within the work area.
54
55
building operators on construction that is, contractors will only be
allowed to work from 8pm to 12 mn, or four hours every day. Lastly,
the calculated costing for the construction would reach P293, 629.
Table 16| Construction Costs
Materials Labor Cost TOTAL
Cost
u
qty nit unit total unit total
A. General Requirements
Mobilization/
Demobilization 1 lot 5,000
Power and water
consumption 1 lot 15,000
Permit and Fees 1 lot 10,500
Hauling and Lifting 1 lot 8,900
Final cleaning/ clearing 1 lot 5,000
44,400
B. Demolition Requirements
1
Concrete 2.6 m2 350 4,410 4,410
1
Wood 6.8 m2 150 2,520 2,520
Hauling and Disposal of
Debris 1 lot 2,500 2,500
9,430
C. Carpentry Requirements
18,50 18,50 7,40
Cashier counter 1 0 0 0 7,400 25,900
Floating shelves 6 1000 6000 833 5,000 11,000
1
Storage cabinets 2 2500 5000 350 2,700 7,700
2
Worktables 1 1500 1500 000 2,000 3,500
48,100
D. Painting requirements
1200
Ceiling - enamel 25 m2 480 0 240 6,000 18,000
2100 15,75
Walls - semi gloss latex 175 m2 120 0 90 0 36,750
2
Cashier counter - duco 1 4500 4500 100 2,100 6,600
2
Storage cabinets - duco 2 1500 3000 500 2,500 5,500
2
Floating shelves - duco 6 500 3000 500 2,500 5,500
Worktables - flat 1 120 120 90 90 210
72,560
56
E. Wall finishing
Working area partition
(fabric) 1 lot 1480 1480 500 500 1,980
Fitting room partition
(fabric) 1 lot 1000 1000 500 500 1,500
Mirror on plywood 1045
backing 11 m2 950 0 380 4180 14,630
18,110
F. Floor finishing
Cement laying 25 m2 150 3750 50 1250 5,000
Acrylic emulsion 25 m3 200 5000 100 2500 7,500
6 5312.
Carpet roll .25 m4 850 5 100 625 5,938
18,438
G. Ceiling works
Flat ceiling using 1/4 1200
plywood 25 m2 480 0 240 6000 18,000
18,000
H. Bathroom Requirements
Tiling 200 pcs 12.5 2500 50 1000 3,500
Sink and Toilet 6
Installation 1 lot 4000 4000 000 6000 10,000
13,500
I. Electrical Works
12,33 12,33 9,85
Wiring and Conduit 1 lot 0 0 0 9,850 22,180
2,15
Switches and Outlets 1 lot 4,500 4,500 0 2,150 4,650
pc
Fluorescent- Cove Light 5 s. 275 1,375 150 750 2,125
Panel Box and 4,50
Accessories 1 lot 7,500 7,500 0 4,500 12,000
40,955
J. Other Finishes
Laminated Cashier 1 1,05
countertop .92 m2 3,500 6,720 0 2,016 8,736
Aircon provisions 1 lot 900 900 500 500 1,400
10,136
293,62
TOTAL 9
57
Table 17| Construction Schedule
Duration: 22 Days
1 1 1 1 1 1 1 1 1 1 2 2
1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 22
Demolition Requirements
Concrete
Wood
Hauling and Disposal of
Debris
Carpentry Requirements
Cashier counter
Floating shelves
Storage cabinets
Worktables
Ceiling works
Flat ceiling using 1/4
plywood
Electrical Works
Wiring and Conduit
Switches and Outlets
Fluorescent- Cove Light
Panel Box and Accessories
Panting requirements
Ceiling – enamel
Walls - semi gloss latex
Cashier counter - duco
Floating shelves - duco
Storage cabinets - duco
Worktables – flat
Floor finishing
Cement laying
Acrylic emulsion
Carpet roll
Wall finishing
Working area partition
(fabric)
Fitting room partition (fabric)
Mirror on plywood backing
Bathroom Requirements
Sink and Toilet Installation
Tiling
58
B. EALA Inc. Office Layout
The office of EALA Inc shall be located at the 4th floor of 33 P. Burgos St.
corner G. del Pilar Street, West 10th Ave., Caloocan City. The building is
conveniently located along the boundaries of Quezon City, Malabon, Navotas
and Manila. It is also 45 minutes away from Katipunan, where the store will
be located. The total space area available for occupancy is 36.7 square
meters.
1. Proposed Layout
The office space is intended for conducting business transactions,
generating reports, receiving customers and job applicants, and
providing storage for documents essential to EALA Inc. Because of this,
the office space shall be divided into 4 areas: conference, computer,
receiving and storage.
The office unit is already furnished with wall paper, air conditioner,
cabinets, and tables.
59
TP
Office
Figure 17| Proposed Office Layout of EALA1234
Inc.
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Table 18| Costing of Office Investments
EXPECTE
OFFICE EQUIPMENT Qty. COST TOTAL D
LIFE
4 in 1 office machine
1 12,000.00 12,000.00 5 years
(printer, scanner, copier, fax)
Computer Set 2 30,000.00 60,000.00 5 years
P
TOTAL
72,000.00
EXPECTE
FURNITURES & FIXTURES Qty. COST TOTAL D
LIFE
Filing cabinets 2 2,500.00 P 5,000.00 10 years
TOTAL P 39,700.00
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The following permits have to be processed:
1. Barangay Clearance
2. Mayor’s Business Permit
3. DTI Certificate of Registration
4. DOLE Registration
5. BIR Registration
6. BIR POS Permit
7. BIR Authority to PrintThe law requires the execution of the Articles of Incorporation so as to endow the
corporation the capacity to transact the business for which it was created.
Articles of Together with the Treasurer’s Affidavit and upon payment of filing and publication
Incorporation fees, the Securities and Exchange Commission shall then issue the Certificate of
While the following permitsIncorporation
have to to be thesecured
business entity.
from the City / Municipality:
1. Building Permit
2. Electrical Permit
Barangay The business must then secure a certification from the barangay to where it will
operate. The Barangay Clearance shall include the name of the owner, the name,
Clearance
3. Wiring Permit nature, and address of the establishment, and the date when the form has been
Fee: P400.00 approved by the Barangay Chairman.
4. Occupancy Permit
5. Locational Clearance
6. Sanitary Permit The Community Tax Certificate can be obtained from the Bureau of Internal
Community Tax
Revenue after accomplishing the Application of Registration and payment of
7. Certificate of Fire Safety
Certificate AnnualInspection
Registration Fee and Documentary Stamp requirements.
8. Certificate of Electrical Inspection
The Community
Coordinate with building operators forTax
theCertificate can be obtained from the Bureau of Internal
following:
Sanitary Permit Revenue after accomplishing the Application of Registration and payment of
1. Final building inspection
Annual Registration Fee and Documentary Stamp requirements.
2. Permit to Move-in
3. Overtime / Work Permit
The establishment must then be registered to specific zoning areas as assigned
Locational by the Local Zoning Board in the Planning Department of the City/Municipality.
4. Permit to Pull-out Garbage
Clearance Upon application and approval, the business shall be classified as belonging to
the Residential, Commercial, or Institutional Zones, whichever it is deemed
Fee: P425.00
included.
As persuant with the fire safety and and protection requirements of the Fire Code
Fire Clearance of the Philippines (PD-1185), the business must obtain a Fire Safety Inspection
Certificate before it could operate. The building or occupancy must be inspected
Fee: P356.10 and should be subject to the recommendation and approval from the Chief
Inspector of the Municipal Fire Marshal.
A. Requirements
Building for Businessmust
The establishment Application
then request for a certification of tenancy from the
Administrator’s building or mall to where it shall locate its business at. The certificate should
To be accomplished include
at thetheBusiness Permit
name of the stall and the and
levelLicense Office
where it is placed, the space code and
Certificate the its approximate floor area.
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Tax on Delivery Vans/Trucks Sec. 19(25), RCMM
Tax on Signboards/ Bill Boards Sec. 40, RCMM
Regulatory Charges
Mayor’s Permit Fee Sec. 105, RCMM 450.00
Garbage Charges Sec. 63, RCMM 100.00
Delivery Vans/Trucks Permit Fee Sec. 105(b), RCMM
Business Registration Plate 180.00
Inspection Fees
Sanitary Inspection Fee Sec. 109, RCMM 36.00
Building Inspection Fee P.D. 1096
Electrical Inspection Fee P.D. 1096 175.00
Mechanical Inspection Fee P.D. 1096
Plumbing Inspection Fee P.D. 1096
Signboard/Billboard Inspection
Sec. 105(b), 13, RCMM 50.00
Fee
Penalty (Surcharge & Interests)
B. Leasing Requirements
a. Legal Requirements (Corporation)
1. Articles of Incorporation and By-Laws
64
2. Board Resolution authorizing the Contract of Lease and designating
the Authorized Signatory
3. Community Tax Certificate of the Corporation and the Authorized
Signatory
4. Registration of Business Name with DTI
5. Certificate of Registration with BIR
6. Business Permit
b. Technical Aspects
1. Floor Plan
2. Ceiling Plan
3. Front Elevation
4. Longitudinal Section
5. Cross-Section
6. Perspective
7. Signage
8. Electrical Load Schedule
8a. Electrical Layout
8b. Lighting Fixture
8c. Power
8d. Signage
9. Color Scheme
10. Scope of Work
65
Fixed Assets
Office
Equipment
4 in 1 machine 12,000
Computer Set 60,000
Furniture and Fixtures
Cabinets 2,500
Chairs and table 29,000
Sofa 4,000
Fire extinguisher 1,700
Leasehold Improvements 15,000
Total Office Assets 124,200
Store
Equipment
Sewing machine 30,000
Edging machines 15,000
Buttonholers 5,000
Jeans software 20,000
Computer set 30,000
Chairs and worktables 5,710
Phone 2,000
Safety deposit box 1,700
Furniture and Fixtures
Display materials 15,000
2-seater sofa 6,000
Chair 2,000
Center table 4,000
Floor lamp 1,500
Lighting system 8,000
Fire extinguisher 1,700
Air conditioning unit 17,000
Leasehold Improvements 293,629
Vehicle 300,000
Total Store Assets 758,239
Total Fixed Assets 882,439
66
Prepaid Rent 75,000
Total Current Assets 668,385
Production Costs
Variable
Indirect Labor (Washing: Outsource) 15,000
Total Variable Costs 15,000
Fixed
Direct Labor (wages) 48,000
Indirect Labor (Designer) 20,000
Rent Expense 12,500
Utilities 9,090
Transportation 3,000
Repair and Maintenance 0
Total Fixed Costs 92,590
Total Production Costs 107,590
Administrative Costs
Office Supplies 1,000
Salaries 162,000
Insurance 1,875
Communications 1,500
Utilities 2,000
Total Administrative Costs 168,375
Total Initial Working Capital 944,350
TOTAL INITIAL INVESTMENT COST 1,948,965
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