Philippine E-Journals

A Project Feasibility Study on the Production of Milk-Tea Flavored Ice Cream in Calamba City, Laguna

Jessica Christine Lazatin | Clarisse Joy Acuavera | Angel Lizette Morales

 

Abstract:

LAM Manufacturing aimed to provide job opportunities to the residents of Bucal, Calamba City; to expand its market through retail to more barangays in Calamba, Laguna; to produce new product of ice cream in different sizes; and to be a well-known ice cream manufacturer. The feasibility criteria include: (1) There was an unsatisfied demand of 726,392.99 cups in the target market for the year 2019 and there would still be an unsatisfied demand in the succeeding years; (2) Milk-tea powder is the main ingredient needed in the preparation of the offered product and all the raw materials, supplies and equipment needed for the business' operation were found available; and (3) Based on the financial study, the proposed business was found financially viable and feasible. The idea of producing milk-tea flavored ice cream was based on the growing demand for the milk-tea beverages in the market. Project Timetable and Status. The preparation of the feasibility study of the proposed business would take three months. It would be followed by the formation of business' organization for a month and the registration for business licenses and factory plant site construction or registration for another two months. Acquisition and installation of equipment, hiring of personnel or workers would take place for a month. And lastly, order of raw materials or supplies and machine testing would take place for a month. After all the aforementioned activities, the normal operation of the business shall commence. Mode of Financing. The initial investment cost needed to establish the said business is Php 1,800,000.00 to be equally divided to the three partners. Investment Costs. The total project cost of the business would be comprised of pre-operating costs, cost of fixed assets, working capital, freezer fund and contingency. Promotional tools and activities would be used for the introduction of the product to the market. The net income on the first year would be Php 355,580.81 and Php 1,117,293.63 on the fifth year.