CHAPTER I

INTODUCTION
Tires are a huge headache when it comes to waste management and recycling,
but there are clever DIY ways that each of us can reuse and recycle them and save
them from entering the environment or taking up space in our landfills.
Most studies indicate that tires will slowly leach toxic chemicals into the
surrounding environment, but many of these studies describe long-term effects when
exposed to the elements. It's probably a good idea to refrain from using them to plant
edible plants, but many other applications should be OK, especially if they will be
covered in some way or won't be touched too often.
In order to improve ones business, it is expected for the businessmen to seek
the best possible ways to progress his company. One of the most common techniques
of developing business in order to trump in the competition is improving management
and cutting off expenses, which can be best achieved through lean systems strategies.
End-of-life tires constitute one of the biggest environmental concerns in terms of
environmental pollution and resources conservation. They may cause fire hazard, trap
rain water creating potential breeding grounds for mosquitoes, and occupy large volume
in landfills. Besides, they have a virtually unlimited life span and need long time for
natural degradation due to the cross-linked structure of rubbers and the presence of
stabilizers. Tire ingredients include rubber (natural and synthetic), reinforcing chemicals
(carbon black and silica), oils, processing aids, resins, vulcanizing agents, activators,
and accelerators. The principal alternatives for managing scrap tires are commonly
referred to as the four Rs (4Rs); reduction, re-use, recycling, and energy recovery.
Reduction can be achieved by technological developments in tire design and materials
that prolong the tire life span and decrease its weight. However this alternative is not
used in Egypt due to technical problems and big research investments. As for reuse,
some markets have been developed for reusing whole scrap tires. They are reused as

crash barriers in roads, car races, in maritime ports and as new tires for old cars and for
carts.
As regards recycling, about 65-75% of tire weight is rubber (natural or synthetic)
and carbon black found mainly in the tread, sidewall, and inner liner compounds of the
tire . Recycling alternatives include retread, pyrolysis, rubber modified asphalt,
compacting rubberized concrete, shredding, crumbing, and reclaiming. Crumbing is a
procedure in which scrap tire is converted into "crumb rubber" through removing steel
belts, bead wire, and fabrics and produce tire chips . Tire chips are processed to
produce finer particle sizes and super fine powder that will be able to chemically bond
with the virgin rubber in the vulcanization process.
Reclaimed rubber and crumb rubber are valuable products that are used in the
production of new tires. They also lower power consumption as a result of shorter
mixing cycles and reduction of shrinking during extrusion and calendaring.When you
think about it, a tire is a perfect place to rest your feet.

BACKGROUND OF THE STUDY

An ottoman is a form of furniture which usually has a head but no back, though
sometimes it has neither. It may have square or circle, and as a rule it is what
upholsterers call stuffed over that is to say no wood is visible. It is a piece
of furniture consisting of a padded, upholstered seat or bench, usually having neither a
back nor arms, often used as a stool, footstool or, in some cases, as a coffee
table. Ottomans are often sold as coordinating furniture with armchairs or gliders. An
ottoman can also be known as a footstool, hassock, pouf or pouffe. Many ottomans are
hollow and used for storage. Ottomans can be used in many rooms; they can be used in
the bedroom, gaming room, family room and guest room. Leather and bench ottomans
are used as alternatives to sofas. This rope ottoman is the perfect weekend project if
you are in need of something new and exciting for inside the house. You will need a
round board of some sort to create the top and then you basically just add the rope to
cover the entire thing. It makes a beautifully rustic looking ottoman that is perfect for

indoor use or you could add it to your outdoor dcor as well if you want. Its quite easy
to do and takes very few materials.

DEFINITION OF TERMS
Ottoman- a low piece of furniture that has a soft top and that you can put your
feet on when you are sitting, floor plan homes that share seating with more than one
area. For example open concept living and family room concepts may only have space
for one seating area. Ottomans give the options of versatility to add seating to the
shared space, or just leave alone and when pushed up against a wall with pillows can
now transform into a couch.
Old Tire- is a ring-shaped vehicle component that covers the wheel's rim to
protect it and enable better vehicle performance. Most tires, such as those for
automobiles and bicycles, provide traction between the vehicle and the road while
providing a flexible cushion that absorbs shock.
Twine or Rope- is a group of yarns, plies, or strands that are twisted
or braided together into a larger and stronger form. Ropes have tensile strength and so
can be used for dragging and lifting, but are too flexible to provide compressive
strength.
All Purpose Contact Cement- This is a special adhesive that is formulated
specially for furniture, woodworking, carpentry, crafts and repair projects. It is a no-drip
formula that stays where you put it and is paintable and fast drying. Ideal for tables,
shelving, clocks, ready-to-assemble furniture, chairs, benches, crafts, furniture,
cabinets, hobbies, wood veneers, paper, cloth and birdhouses. Not recommended for
sheet good, wood flooring, ceiling applications or underwater use.
Casters

or

Furniture

Feet-

is

an

undriven,

single,

double,

or

compound wheel that is designed to be mounted to the bottom of a larger object (the
"vehicle") so as to enable that object to be easily moved. They are available in various
sizes, and are commonly made of rubber, plastic, nylon, aluminum, or stainless steel.

Upholstery Tacks- a type of cut nail, used in upholstery, shoe making and
saddle manufacture
Plywood- is a sheet material manufactured from thin layers or "plies" of wood
veneer that are glued together with adjacent layers having their wood grain rotated up to
90 degrees to one another.
Screws- is a type of fastener, sometimes similar to a bolt, typically made of
metal, and characterized by a helical ridge, known as a male thread (external thread) or
just thread. It is an inclined plane wrapped around a nail.
Polyurethane or Comparable Clear Sealer- are used in the manufacture of
nonflexible, high-resilience foam seating; rigid foam insulation panels; microcellular
foam seals and gaskets;

durable

coaster, escalator, shopping

elastomeric

cart, elevator,

wheels

and

tires

(such

and skateboard wheels);

as roller

automotive

suspension bushings; electrical potting compounds; high performance adhesives;

surface coatings and surface sealants;

SCOPE AND LIMITATIONS

The researchers focused their study on the production of recycled ottoman at
Lemery, Batangas. This will also consider the five major aspects such as marketing,
technical, management, financial and socio-economic factors.
Aside from this, it will also discuss the production of a recycled ottoman by using
old tires and rope that can be used in two different ways: as a coffee table or as a chair.
The proponents have come up on creating this kind of recycle product as they want to
answer the need of their market.
This study will also confer with its possible competition and how this product can
handle the need for competition with its closely related products.

CHAPTER III

TECHNICAL STUDY
Technical feasibility is simply the characteristic of being realistic. The technical
study of feasibility is the study of how realistic an idea is. The proposed project aims to
determine the feasibility and viability of putting up a business producing ottoman by
recycling use tires.
A feasibility study projects the success or failure of a potential business idea. The
usefulness of the study depends on the strength of the assumptions you use to create it.
If the feasibility study shows a likely failure, you can save your money for a better
opportunity instead of wasting it developing projects that never had a chance for
success.

OBJECTIVES OF THE STUDY

The feasibility study has the following technical objectives:
1. The development of new product, processes or internationally traded services.
2. The improvement/redesign or development of existing products services or
processes.
3. To state the processes involve in the production of the product.
4. To establish the location and the size of the business plant.

PRODUCT DESCRIPTION
The researchers come up to produce a quality product to meet the demand and
earn a desirable profit. Our product Ottoman is a multi-purpose chair or coffee table
that is useful for home and offices.
The main purpose of this product is to recycle and put native product that is
being produce by Philippine provinces.
MANUFACTURING PROCESS

Manufacturing is the production of merchandise for use or sale using labor,

and tools, chemical and biological processing, or formulation. The term may refer to a
range of human activity, from handicraft to high tech, but is most commonly applied
to industrial production, in which raw recycled materials are transformed into finished
goods on a large scale. Such finished goods may be used for manufacturing other,
more

complex

products,

such

as aircraft,

household or automobiles,

or

sold

to wholesalers, who in turn sell them to retailers, who then sell them to end users the
"consumers".

1. Preparation of Raw materials

Preparation of raw materials starts with extraction of the main
components; which are ply wood, old tires, twine or rope, liquid nail and caulk
gun, casters or furniture feet, screws, drill, polyurethane or comparable clear
sealer, and jig saw.
2. Measuring
Ascertain the size, amount, or degree of (something) by using an
instrument or device marked in standard units or by comparing it with an object of
known size.
3. Cutting
In preparing for cutting process, the cutter is the worker that will perform
the cutting operation. There must be a draft or the pencil marks drawn to come
up the desired sizes of the wood based on the measurement.
4. Assembling
Processes in which the old tires will be assembled or recycled by using liquid
nail and caulk gun and screws to create the complete structure of the chair or
coffee table.
5. Finishing
It includes the final furnishing of the product.
6. Packaging

You should make sure that your product has good packaging so that when
people see it in the store it is appealing, store in safe place and ready for
distribution or delivery.

PROCESS FLOW CHART DIAGRAM FOR FLIP AND TOP TABLE

Preparation of Raw Materials (10 mins.)

Measuring (3 mins.)

Cutting (10 mins.)

Assembling (24 hrs.)

Finishing ( 45 mins.)

Packging ( 1 hr.)

TOOLS AND EQUIPMENT

A tool is any physical item that can be used to achieve a goal, especially if the
item is not consumed in the process. Informally the word is also used to describe a
procedure or process with a specific purpose. Tool use by humans dates back millions
of years, and other animals are also known to employ simple tools.

Indirect Materials - Tools

Items

Qty.

Supplier

Amount

Total

Meter

VR Patron Hardware

P75.00

P75.00

Saw

VR Patron Hardware

P150.00

P150.00

Claw Hammer

VR Patron Hardware

P175.00

P175.00

Jigsaw

VR Patron Hardware

P3,300.00

P3,300.00

Hand Drill

VR Patron Hardware

P2,500.00

P2,500.00

P6,202.00

P6,200.00

Total

The table shows the list of tools and equipment and its prices and its supplier that will
be used in manufacturing of Ottoman.

Meter- Meter is the tools used in measuring the length and width of the raw materials
needed in the production.
Saw-tool or device for cutting, typically a thin blade of metal with a series of sharp teeth.
Claw Hammer- A claw hammer is a tool primarily used for pounding nails into, or
extracting nails from, some other object. Generally, a claw hammer is associated
with woodworking but is not limited to use with wood products. It is not suitable for
heavy hammering on metal surfaces (such as in machining work), as the steel of its
head is somewhat brittle; the ball-peen hammer is more suitable for such metalwork.
Hand Drill- to shoot with or as if with a gun

FURNITURE AND FIXTURE

Long-term assets that are reported under the classification of property,

plant, and equipment on a company's balance sheet. These assets are depreciated
over their useful life.
Furniture and fixtures is an accounting term used in valuing, selling, or liquidating
a company or a building.
Furniture and Fixture

Items
Chair

Qty.
5

Suppliers
AWZ House Of Furniture

Unit Cost
150.00

Total Cost
750.00

Table

AWZ House Of Furniture

500.00

1,000.00

Electric Fan

AWZ House Of Furniture

900.00

2,700.00

Computer Table
TOTAL

1
11

AWZ House Of Furniture

999.00
2,549.00

999.00
5,449.00

Chair - a separate seat for one person, typically with a back and four legs.
Table - is a form of furniture with a flat horizontal upper surface used to support objects
of interest, for storage, show, and/or manipulation?
Electric Fan - A machine using an electric motor to rotate thin, rigid vanes in order to
move air, as for cooling.
Computer Table - The computer desk and related ergonomic desk are furniture pieces
designed to comfortably and aesthetically provide a working surface and house or
conceal office equipment including computers, peripherals and cabling for office and
home-office users.

Direct Materials
The costs of all materials that are an integral part of a finished product and that
have a physical presence that is readily traced to that finished product.

Items

Qty.

Unit Cost

Price

Plywood

P700.00

P700.00

Old Tire
All Purpose Contact

P100.00

P100.00

Cement

2 Bottles

P85.00

P170.00

Nail

1 kilo

P20.00

P20.00

Sisle Rope

68 yards

P20.00

P1,360.00

P925.00

P2,350.00

TOTAL

Indirect Materials
The material which is used for purposes ancillary to the business and which
cannot be conveniently assigned to specific physical units is termed as indirect material.
Consumable stores, oil and waste, printing and stationery material etc.

Items

Qty.

Supplier

Amount

Total

Sticker Paper

piece

JBR School and Office

P5.00

P5.00

Supplies

Pallet Wrap

piece

VR Patron Hardware

TOTAL

P400.00

P400.00

P405.00

P405.00

Sticker Paper - A label is a piece of paper, polymer, cloth, metal, or other material
affixed to a container or article, on which is printed a legend, information concerning the
product, addresses, etc. Information printed directly on a container or article can also be
considered labeling.
Pallet Wrap - Stretch wrap or stretch film is a highly stretchable plastic film that is
wrapped around items. The elastic recovery keeps the items tightly bound.

Office Supplies and Equipment

Items

Qty.

Supplier
345 School and Office

Amount

Total

Ball pen

10 pcs.

Supplies
345 School and Office

6.00

60.00

Record Book

1 pc.

Supplies
345 School and Office

120.00

120.00

Official Receipt

3 pcs.

Supplies
345 School and Office

20.00

60.00

Electronic Calculator

1 pc.

Supplies
345 School and Office

190.00

190.00

Time Card

1 bundle

Supplies
345 School and Office

37.50

37.50

Job Boarder Booklet

1 pc.

Supplies

100.00

100.00

345 School and Office

Stapler

1 pc.

Supplies
345 School and Office

60.25

60.25

Ruler

3 pcs.

Supplies
345 School and Office

10.00

30.00

Scissor

2 pcs.

Supplies
345 School and Office

20.00

40.00

Staple Wire

2 boxes

Supplies
345 School and Office

30.00

60.00

Puncher

1 pc.

Supplies
345 School and Office

215.00

215.00

Stamp and Pad

1 pc.

Supplies
345 School and Office

230.00

230.00

Paper Clip

1 box

Supplies

55.75

55.75

TOTAL
624.00
1,258.50
Ball pen A ballpoint pen is a writing instrument which dispenses a viscous ink from an
internal reservoir through the rolling action of a metal ball at its point. This "ball point"
may vary in diameter, and may be made of brass, steel, or tungsten carbide.
Record Book a compilation of the known facts regarding something or someone
Official Receipt an official receipt is the proof of purchase given to a buyer who has
paid for the goods. It is an immediate exchange between the buyer and seller as
evidence of a transaction done showing how much has been paid to get the goods.
Electronic Calculator An electronic calculator is a small, portable, often inexpensive
electronic device used to perform both basic and complex operations of arithmetic.
Time Card - a card used to record an employee's starting and quitting times, usually
stamped by a time clock.
Folder a folding cover or holder typically made of stiff paper or cardboard, for storing
loose papers.

Fastener Devices that are used to join and assemble parts together.
Stapler a device for fastening together sheets of paper with a staple or staples.
Ruler a straight strip or cylinder of plastic, wood, metal, or other rigid material,
typically marked at regular intervals, to draw straight lines or measure distances.
Scissor - move (one's legs) back and forth in a way resembling the action of scissors.

Office Equipment

Items

Qty.

Supplier

Amount

Total

Computer

Tipid Lemery Computer Center

12,000.00

12,000.00

Fire Extinguisher

Olx.com

1,499.60

1,499.60

Vault

Olx.com

4,000

4,000

TOTAL

13,499.60

17,499.60

Computer - an electronic device for storing and processing data, typically in binary
form, according to instructions given to it in a variable program.

Fire Extinguisher - A fire extinguisher, flame extinguisher, or simply an extinguisher, is

an active fire protection device used to extinguish or control small fires, often in
emergency situations.

Miscellaneous
(Of items or people gathered or considered together) of various types or from
different sources.

Miscellaneous

Items

Qty.

Supplier

Amount

Total

Gloves

6 pairs

Lemery Public Market

5.00

30.00

Brooms

1 pc.

Lemery Public Market

110.00

110.00

Dust Pan

1 pc.

Lemery Public Market

30.00

30.00

Garbage Can

1 pcs.

Lemery Public Market

120.00

120.00

Door Mat

2 pcs.

Lemery Public Market

30.00

60.00

Rags

4 pcs.

Lemery Public Market

3.00

12.00

Soap

1 pc.

Lemery Public Market

18.00

18.00

TOTAL

P316.00

P380.00

Gloves a covering for the hand worn for protection against cold or dirt and typically
having separate parts for each finger and the thumb.
Brooms a long-handled brush of bristles or twigs used for sweeping.
Dust Pan a dustpan is a cleaning utensil, commonly used in combination with a
broom or brush. The dustpan may appear to be a type of flat scoop.
Garbage Can a container, typically plastic or metal, for household refuse.
Door Mat a mat placed in a doorway, on which people can wipe their shoes on
entering a building.
Rags a piece of old cloth, esp. one torn from a larger piece, used typically for cleaning
things.
Soap a substance used with water for washing and cleaning, made of a compound of
natural oils or fats with sodium hydroxide or another strong alkali, and typically having
perfume and coloring added.
PRODUCTION SCHEDULE
Production schedule is the timetable for the use of resources and processes
required by a business to produce goods or provide services. A typical business will
modify its production schedule in response to large customer orders, to accommodate
resource changes, to reduce costs, and to increase overall production efficiency.
The proposed business will operate 300 days annually, 6 days a week, from
Monday to Saturday, 8:00am to 5:00pm. Sunday will be the companys day off for its
employees. Holidays indicated as non-working holiday will also be excluded from the
plant days of operation. A reduction in the hours of operation or complete shutdown may
occur only at times where the production supply has run short or delayed.

Production Schedule

Year

Annual

Monthly

Weekly

2016

240

20

2017

480

40

10

2018

720

60

15

2019

960

80

20

2020

1,440

120

30

PLANT LOCATION, GEOGRAPHICAL LOCATION AND COMPETING COMPANIES

Everyone now understands that manufacturing provides an essential source of
competitive leverage. No longer does anyone seriously thinks that domestic producers can
outdo their competitors by clever marketing onlyselling the sizzle while cheating on quality or
letting deliveries slip. It is now time for concrete action on a practical level: action to change
facilities, update processing technologies, adjust work-force practices, and perfect information
and management systems. The definition of plant location is a location where a plant should be
located while determining the maximum effectiveness and operating economy. The place of the
plant should offer the lowest cost when the cost of production and delivering the goods to
consumers has been calculated.

PLANT SIZE LAYOUT

The plant size is about came up with the design of our plant based on the
companys goal of having a suitable area for production and a convenient place for
workers to work on. Its design complies with some of the standards regarding buildings
facilities and design. An ideal location is one where the cost of the product is kept to
minimum, with a large market share, the least risk and the maximum social gain. It is
the place of maximum net advantage or which gives lowest unit cost of production and
distribution. For achieving this objective, small-scale entrepreneur can make use of
locational analysis for this purpose.

Utilities
It has been a strategic choice of the company to put up its business at the
location with all basic needs of the plant available. Utilities have been secured and
registered long before the start of its operation to ensure that the pre-planned monthly
production output will always be met with no interruptions.

Supply of Power
All of the businesses need an electric supply. Electricity is the most needed in
many operations. In Lemery, Batangas, BATELEC is the one who can supply the power
on the firm that must needed in electricity.
Supply of Water
We use water for many things; we need water for everything especially to those
businesses for cleanliness, sanitation and maintenance. Water is not for business only,
it is also important and need in our bodies for so many reasons.

Telephone
A telephone is a communication device used between two people for business
transactions and for so many reasons. It will be provided by Globe Telecom since it is
more affordable than other telecommunication companies.
Waste Management
Waste management planning is the keystone of any policy on waste
management. The formation of a plan allows taking stock of the current situation,
defining the objectives that need to be met, framing suitable strategies, and identifying
the necessary execution means. Since the materials in making the recycled ottoman
would be mainly biodegradable, the wastes would not be in any form of threat to the
environment. The operation and production will not cause harm to the environment. The
company will also be willing to participate in the programs concerning the environments
conservation.
There is a wide array of issues relating to waste management and those areas include:

Generation of waste

Waste minimization

Recycling and reuse

Storage, collection, transport, and transfer

Treatment

Landfill disposal

Environmental considerations

Financial and marketing aspects

Policy and regulations

Education and training

Planning and implementation

Utilities

Source

Electricity

BATELEC 1 in Lemery, Batangas

Water

Lemery Water District (LEWAD)

Telecommunication

Globe Telecom

Waste Disposal

Municipal Garbage Collector

THE PRODUCTION COST AND SELLING PRICE

Direct Materials Used

2016
292,944.00

2017
583,886.40

2018
898,466.40

2019
2,053,320.00

2020
1,514,784.00

Direct Labor

89,856.00

179,712.00

269,568.00

359,424.00

449,280.00

Factory Overhead

60,000.00

75,000.00

90,000.00

105,000.00

120,000.00

Total Production Cost

442,800.00

838,598.40

1,258,034.40

2,517,744.00

2,084,064.00

Production Volume

240

480

720

960

1200

Production Cost/Piece

1,845.00

1,747.08

1,747.27

2,622.65

Mark-up
Selling Price/Piece VAT
INCLUSIVE

0.50

0.55

0.60

0.65

1,736.72
0.70

2,767.50

2,707.97

2,795.63

4,327.37

2,952.42

Less: VAT

332.10

324.96

335.48

519.28

354.29

Selling Price/Piece, VAT

Exclusive

2,435.40

2,446.19

2,460.15

3,808.09

2,598.13

GENERALIZATION
Creating the technical aspect of the study helps the proponents determine the
sources needed to put up a business. Describing the contents of the product was easy,
but deciding where to get those contents requires an efficient and effective thinking to
lessen the cost. There must be certain factors to consider in choosing the proper place
where to put up a business as well as the source of its utilities. Factors such as it must
have a good environment and quick access to its customers, retailers and suppliers.
This study made the proponents think intelligently and practically.

Ottoma
n