ASIAN INSTITUTE

OF
COMPUTER
STUDIES
CALOOCAN
BRANCH
A PROJECT STUDY BACHELOR OF
SCIENCE
IN IN
EXPORT MARKETING
ENTREPRENEURHIP
ENT 4217 2016-2017
Yokohama Tire Philippines, Inc.

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

THE DEGREE

BACHELOR OF SCIENCE IN ENTREPRENEURSHIP

PREPARED BY:
o NECESARIO, MARGIE M.
o PUASO, JASMINE CARLA C.
o GOPEZ, RENJAY P.

SUBMITTED TO:

Yokohama Tire Philippines, Inc. Page 1

 MR. DIOSDADO C. ONANAD

February , 2017

Table of Contents

Company Profile

3-7
Business Structure
8
Yokohamas Midterm Policy
. 9
Vicinity Map

. 10
Contact Yokohama Group
.. 11
Companys Layout Plan
12-13
Countries related to Yokohama
.. 14-15
Products

.. 16-18
Sample Legal Document
19
Yokohamas Export Process Flow Pert-
CPM. 1

Yokohama Tire Philippines, Inc. Page 2

Appendix

..
a. Endorsement Letter
b.Questions and Answer
c. Pictures
d. Old Documents

Yokohama Tire Philippines, Inc. Page 3

 Company Profile

Yokohama Tire Philippines, Inc. (YTPI) is a Tire Manufacturing Company

in the Philippines that produces high quality TIRES for the Yokohama Rubber
Co., Ltd. (YRC)

As the largest company in the area, Yokohama Tire Philippines, Incorporated

(YTPI) began business operation in Clark Special Economic Zone (CSEZ).

They also have plants located in India, Thailand, Vietnam, Russia, and USA
and in Japan- the mother company.

YTPI is carrying on the Yokohama brand tradition of craftsmanship, state-of-

the-art technology and quality. Making full use of the splendid operating
environment combined with highly advanced technology, YTPI guarantees
not only high reliability and performance but also the highest quality in the
tires it manufactures, tires that personify our slogan Tires You Can Trust in
the Philippines.

History

Yokohama Tire Philippines, Inc. was then vested in the industrial site of
Clark Special Economic Zone in November 1996. Strategically located,
Clark is equipped with an international airport, near Subic port area as well
as few hours on the way to the capital city of Philippines which is Manila
through North Luzon Expressway.

Choosing Filipinos to be in the combat zone of workmanship, Yokohama

believes in our skills and as they say, combining Japanese high technology
with Filipino craftsmanship is a superb distinction.

Filipinos were then sent to Japan, in where the head plant of YRC is located,
to undergo training on producing quality pneumatic radial tires for
passenger vehicles. A couple of years after, with right set of skills, YTPI is
ready to begin the production.
At present, YTPI is the only rubber company that operates here in the
Philippines.

The first ever tire was then released and millions follow thereafter.
At present, 97% of which is being exported worldwide while only 3% is for the
local market.

Yokohama Tire Philippines, Inc. Page 4

 Yokohama Rubber Co.,Ltd (YRC)
History
On October 13, 1917, the Yokohama Rubber Co., Ltd., was established
as a joint venture between Yokohama Electric Cable Manufacturing
Company (predecessor of todays Furukawa Electric Co.) and the United
States B.F. Goodrich Company, and trademark was under
Goodrich.Thisresulted to the opening of Japan to the outside world in the
late 19th century and developed during the 1920s by finding openings for
innovation in Japan's growing industrial infrastructure. The company's most
successful product during this period, providing the main basis for its
growth, was the Hamatown Cord (cord tire) produced from their first
plant named Hiranuma Plant located in Hiranuma-cho, Yokohama
Japan in 1920. Then there came the disaster that completely destroyed
the plant in 1923 named Great Kanto Earthquake. They constructed then
the Yokohama plant in Heian-cho, Tsurumi-ku, Yokohama Japan on
1929 and produced the first tire in 1930 and continuously compete in the
tire industry with success that they were able to change their trademark
from Goodrich to their very own Yokohama in 1937.

Then started 1941, Yokohama Rubber Co. began to establish manufacturing

plants within the country then later, on their neighboring countries such as
Philippines, China, Singapore, India, Thailand, Vietnam, Russia and US.to
expand and extend their sales.

YRC didnt stop developing its tires and never settled to satisfy the
consumers needs for different vehicles and developed tires such as:

Japans Zero fighter planes tires

Japans first snow tire
Tubeless tires
Pneumatic rubber fender
G.T. SPECIAL STEEL, a radial tire for passenger cars
Japans first steel radial tubeless tire, the G.T. SPECIAL STEEL
G.T. SPECIAL SEALEX, a passenger car tire with automatic puncture-
sealing function
Japans first truck/bus radial steel tires with an aramid-fiber carcass
Rally car tires equipped with G.T. SPECIAL
Launched sales of high-performance bicycle
Launched sales of GEOLANDAR A/T tire for recreational vehicles
They also developed different vehicles accessories such as:
HiTES, a tire-pressure monitoring system for truck/bus tires
Ecotex, an energy efficient conveyor belt
AIR watch, a pressure monitoring system for passenger car tires

Yokohama Tire Philippines, Inc. Page 5

 Multiple Businesses
As the YRC grows, extensive product lines aside from tires that are widely used both in
Japan and overseas and these are:

1. Industrial Products

Civil Engineering Products that range from rubber bearings to protect bridges and
buildings from earthquakes to highway joints

Conveyor Belts thatextend from those with such features as high heat, oil and shock
resistance for heavy duty tasks to energy-saving types that are effective in significantly
reducing electric power consumption by reducing rolling resistance

Marine Products thatinclude marine hoses used in transporting crude oil and other
materials by ship as well as marine fenders that protect ship hulls from damage by ship-
to-ship contact. Among these marine products, YOKOHAMAs marine fenders are certified
as being compliant with ISO 17357 standards, which cover such areas as quality and
performance testing.

By offering such a line of industrial products, YOKOHAMA is supporting industry and

society in a variety of ways.

2. Hose and Coupling Products

Such industrial machinery as vehicles, aircraft and construction machinery use

high-pressure hydraulic hoses to operate hydraulic power units. A wide array of products
are available that support safe and stable functionality at plant facilities and hydrogen
plants among other locations. We are progressing with the development of products with
outstanding environmental performance. These include a chlorine-free hose that
does not emit any harmful gases when incinerated after use as well as S-Coupling
that prevents environmental pollution caused by the dripping of residual liquids during
the put-on and take-off processes.

3. Golf Products

PRGR is YOKOHAMAs golf products brand. Since its launch in 1983, YOKOHAMA has
evolved its golf line over the years under the original concept of golf being the physical
phenomenon of a collision between the club and the ball. PRGR was the first to
introduce the concept of head speed in the golf industry. Along with this, clubs were no
longer produced based on experience and instinct and began to take a scientific
approach from various perspectives, including materials, weight, lengths, size
and balance. Originating from fresh and innovative ideas and approaches, PRGR
products have a strong following in Japan and overseas as a brand that is
making its mark and is admired by golfers.

4. Aerospace Products

YOKOHAMA leverages rubber, metal and compound technologies to manufacture a

variety of products for airplanes, ships and automobiles, including tanks, heat insulating

Yokohama Tire Philippines, Inc. Page 6

materials, lightweight composite materials, acoustic materials and honeycomb sandwich
materials. Products that use rubber include fuel tanks and hydraulic hoses, while those
that use metals include V-band couplings and bellows assemblies. We also provide
products that use lightweight compounds such as aluminum honeycomb sandwich
panels, watertanks, lavatory modules and prepreg. Especially noteworthy are
YOKOHAMAs lavatory modules, which are being supplied to Boeing and have earned
high acclaim fortheir lightweight and comfortable design.

YTPI PHILOSOPHY
"Producing quality tires is our greatest pride. We are proud of our work and
fine satisfaction in seeing that the tires we produce meet our customer's
exacting needs and high standards. We aim to accomplish all these at the
same time that we work to preserve and protect the environment and the
earth's resources, develop the skill and potential of our personel and employ
our machines with maximum efficiency and productivity.

This is our Corporate Philosophy. It is a philosophy that we are confident will

succeed and will contribute to the well-being of all our stockholders and
employees and economic development of the Philippines".

CORE VALUES
(Timeless guiding principles)

The Customer is our top priority

Innovativeness and creativity optimize our productivity
Responsible to protect the environment
Enthusiastic to comply with internal & external rules and
regulations
Sincere to supply only the best product at a reasonable price

DEDICATION => SINCERITY =>

EXCELLENCE

MISSION
(Purpose of Existence)

Yokohama Tires Philippines, Inc.,isDEDICATEDto produce high quality

tires
To INTENSIFY the protection of the environment
Promotes Individual EXCELLENCE among members for continual
development of internal systems
Yokohama Tire Philippines, Inc. Page 7
Improve members morale & status of living

VISION STATEMENT

Yokohama Tires Philippines, Inc., to be the Best Company in the

Philippines and ultimately in the World by delivering only the Tires that
people can Trust

ISO CERTIFICATION

Yokohama Tire Philippines, Inc. Page 8

 YTPI ORGANIZATIONAL STRUCTURE
CEO Safety
President Officer
IAMO
Executive Safety
EVP Coordinator Manageme
Plant nt Section
Operations
Manufacturing
Development Distribution
VP
Plant
Operations Central
VP Logistics
and Warehousin
Warehousing g

Planning
Production
Planning Central
Warehousin

MIXING

EXCAL
Manufacturing
1 CUBE

Tire

CURING

Manufacturing FINISHING
2

Engineering
Section

Mechanical
Engineering
EVP Department Electrical
Plant
Operations
Quality
Assurance
VP
Q.A. Tech.
Plant Technology
Department
Operations

EVP Corporation Human

Admin Compliance Resource
Division & Audit Section Managemen
Manager
Public
Relations
Customer & General
VP Service Services
Assistant Representative
Division
Manager Purchasing
Corporation
Planning
Department Accounting

Planning

Yokohama Tire Philippines, Inc. Page 9

 YOKOHAMAS PATH

Yokohama Tire Philippines, Inc. Page 10

 Vicinity Map

Yokohama Tire Philippines, Inc. Page 11

 Contact Yokohama

Corporate Communications Department

36-11, Shimbashi 5-chome, Minato-ku, Tokyo 105-8685, Japan
TEL: (03)5400-4531 FAX: (03)5400-4570

Yokohama Tire Philippines, Inc.

IE-5 Clark Freeport Zone, Philippines 2023
TEL: (+63) 45-599-3603

YOKOHAMA TIRE CORPORATION

1500 Indiana Street, Salem, VA 24153, U.S.A.
TEL : +1 (540) 389-5426 FAX : +1 (540) 375-0213

SUZHOU YOKOHAMA TIRE CO., LTD.

No.158, Huaqiao Road, Xuguan Industrial Park, Suzhou National New
& Hi-Tech
Industrial Development Zone Suzhou, Jiangsu Province, 215151,
CHINA
TEL : +86 (512) 6818-1008 FAX : +86 (512) 6818-1007

HANGZHOU YOKOHAMA TIRE CO., LTD.

Hangzhou, Economic Technological Development Zone (Xiasha)M18-
0-4,
HETZ(Xiasha), Hangzhou, 310018, CHINA
TEL : +86 (571) 8672-5885 FAX : +86 (571) 8672-5753

YOKOHAMA TIRE MANUFACTURING (THAILAND) CO., LTD.

7/216 Moo 6 Amata City Industrial Estate, TambolMapyangporn,
Amphur
Duong Province, VIETNAM
TEL : +84 (650) 3767909 FAX : +84 (650) 3767029

Yokohama Tire Philippines, Inc. Page 12

 COMPANY LAYOUT

Yokohama Tire Philippines, Inc. Page 13

Yokohama Tire Philippines, Inc. Page 14
 YOKOHAMA IMPORTING SUPPLIERS
(Raw and Indirect Materials)

Yokohama Tire Philippines, Inc. Page 15

 YOKOHAMA OVERSEAS CLIENTS
Yokohama Tire Philippines, Inc. Page 16
 Sample Product

BluEarth A iceGuard

GEOLANDAR ADVAN BluEarth

Yokohama Tire Philippines, Inc. Page 17

 ADVAN
The global flagship brand ADVAN line embodies the global
concept of YOKOHAMA. The diverse lineup of ADVAN tires is
actively launched worldwide including ADVAN Sport tires for high-
powered saloons; the dB series featuring a superior quiet ride; the
NEOVA series, which was developed as a high-performance street
sport tire; as well as competition racing tires and tires for the new
generation of SUVs.

GEOLANDAR
The GEOLANDAR range of SUV tires allows drivers to take full
command in driving on various roads and terrain. The
comprehensive series meets the diverse needs of SUV drivers,
including tires with outstanding comfort for long touring drives,
models with improved off-theroad capabilities and wear resistance,
as well as tires featuring advanced environmental performance
such as greater fuel efficiency.

Ice GUARD
This studless passenger car tire realizes driving stability on a
variety of constantly changing road surfaces that can also vary by
temperature. Triple water-absorbing rubber and an improved
Triple Design tread pattern ensure enhanced surface grip in icy
conditions for significantly improved driving stability on wet and
dry surfaces.

BluEarth
The product engineering philosophy for Environmental, Human
and Socially Friendly tyres. Tyres should deliver driving pleasure as
well as less environmental impact. YOKOHAMA has launched the
BluEarth brand in order to pursue environmental, human and
socially friendly performances from its tyres.

Yokohama Tire Philippines, Inc. Page 18

 1st Tire (Existing) Jan. 07, 1998 50, 000 000th Tire
Nov. 24, 2011

1st Tire (Phase III) Dec. 05, 2005 1st Tire (West Plant)
Feb. 07, 2013

Yokohama Tire Philippines, Inc. Page 19

Yokohama Tire Philippines, Inc. Page 20
 SAMPLE LEGAL DOCUMENTS

Yokohama Tire Philippines, Inc. Page 21

 IMPORT PERT-CPM
Purchase PR PO Issuance
PO to Supplier
PO Filing
Requisition Electronic
(PR) Approval Approval

1 2 3 4 5 6 7 8

2hrs 2hrs 3hrs 2hrs 2hrs 1hrs 3hrs

Yokohama Tire Philippines, Inc. Page 22

 Receivin
g Report Paymen
Generati t
Unload on Process
at 1hrTransport
12 1hr
Delivery Receivin Specifi Transport to CDC to YTPI
g ed for ETAPS
___ _____ ______ Inspecti
9 10
Storag 11 ____ 13 14

Receiving
of
Payment

360 hrs 2hrs 2hrs 2hrs 8hrs 1hr

Yokohama Tire Philippines, Inc. Page 23

 EXPORT PERT-CPM

3omins 6 3omins

1 2 3 4 7 8 9 10
3omins 1hr 1hr 1hr 1hr 1hr
1hr

3omins 5 3omins

Yokohama Tire Philippines, Inc. Page 24

 DURATION(H
ACTIVITIES OURS)
A Purchase Requisition (PR) 2hrs
B PR Electronic Approval 2hrs
C Canvassing 3hrs
D Purchase Order (PO) Preparation 2hrs
E PO Approval 2hrs
F PO Issuance to Supplier 1hr
G PO Filing 3hrs
H Delivery 360hrs
I Receiving Inspection 2hrs
J Unload at Specified Storage Area 2hrs
K Receiving Report Generation 2hrs
L Payment Processing 1hr
M Receiving of Payment 1hr
N Transport to CDC for ETAPS 8hrs
O Transport to YTPI 1hr

Yokohama Tire Philippines, Inc. Page 25

 Interview with Ms. Ma. Teresita Nantes,
Senior Supervisor of Raw Material and
Supplies of Purchasing Department
(Import)
(Ren Jay and Jasmine as Interviewer)

Ren Jay: What are the materials/products that are being imported to your
company?

Ms. Nantes: Basically, raw materials such as Natural Rubber, Synthetic

Rubber, Carbon, Rubber Chemicals, Textile, Bid Wire, Steel cord and then
some indirect materials such as Machine and Spare parts.

RJ: From what country/ countries are your imports from?

Ms. N.: We have different suppliers from different countries for our imports
such as for Natural Rubbers, we have Indonesia, Thailand, Malaysia.
Synthetic Rubber is from Japan, Korea, Thailand. Carbon from China, Japan,
Korea, then Rubber Chemicals is from China

RJ: Where do you pick up the imported materials?

Ms. N.: We have Manila Port and Subic Port. We mostly use Manila Port
before but after the congestion issues way back 2015, Subic Port has been
used most during those times. Currently, 50% from Manila Port then
another 50% on Subic Port.

Jasmine: Are the products/ materials you import unavailable locally? If

they are, why do you prefer to import?

Ms. N.: Majority, theyre unavailable and raw Materials are standard for all
plants and approved by mother company in Japan.

Jasmine: Where are the other manufacturing and production plants aside
from the Philippines?

Ms. N.: We have plants in India, Thailand, Vietnam, Russia and two plants
in US. Original plant is in Japan and we currently have four plants there

RJ: Every when should you receive the imports?

Ms. N.: 2 months ordering. Transit time maybe 1 week, 15 days, depends
on country of origin. Also, depends of plan of ordering: there are raw
materials that should be delivered weekly, once every 2 months, once a
month, depends on consumption of raw materials

RJ: What are the exporters requirements in getting your imports?

Yokohama Tire Philippines, Inc. Page 26

Ms. N.: On our end, we just need to send Purchase Order (P.O.) that serves
as the contract. Once we issued P.O. through our system called SAP, theyll
return that as confirmation of the orders and delivery date that we
required them

RJ: Who are the officers in charge when importing and what are their
tasks?

Ms. N.: We have the Planner for the Purchase Request (P.R.) then once PR is
approved, thats when we can make the P.O. and the Buyer is the one
doing the P.O. and for every P.O. of raw material, we have a Buyer in
charge. P.O. is to be approved then by the Section Manager if the amount
is less than Php20, 000 but if its greater, then Internal Auditor,
Department Manager and the President will be involved.

Jasmine: What Shipping lines do you use?

Ms. N.: That depends on the suppliers and we have these Inco terms used.
We have CIF (Cost, Insurance and Freight) wherein supplier will be the
one to look for shipping line. Then we have CFR (Cost and Freight) where
supplier will dictate the freight cost but insurance is from our company,
which is our current Inco term because it costs us lesser in Insurance. We
changed to this Inco term due to issue in taxes before. So, in CFR, BIR will
easily know that the goods are for them. But not all their suppliers are
under CFR. Some are still under CIF because they havent made the
transition yet, as some still have contracts with their shipping line. We
have FOB (Freight on board) where we will be the one to choose the
shipping line.

RJ: To what government agencies do you deal with when importing?

Ms. N.: We have Bureau of Customs, BIR for accreditation or clearance,

Clark Development Corporation (CDC) for ETAPS because everything that
goes in Clark must have that.

RJ: What are you companys expenses when importing materials?

Ms. N.: We have Freight, Demurrage for shipping line (if the vessel
exceeded for 5 days), Storage for shipping line (after payment of
demurrage), Detention cost- when container is not returned to a given
date. Usual cost as they dont have containers to transfer their materials,
Customs, Trucking- Subcontract, Notarial, Parking Fee, Tracking
Appointment Booking System (for port)- serves as an appointment for the
truck of broker. Depends on time of appointment and the payment ranges
from P300- P1,000.

RJ: Does your demand in product/material being limited by you supplier or

exporter? If yes, what is/ are the limits?

Ms. N: Not usually. Its Yokohama that limits the order.

RJ: What are the factors affecting your demand of products or materials
from your supplier/ exporter?

Yokohama Tire Philippines, Inc. Page 27

Ms. N.: Depends on Sales Forecast. If the forecast says they should
increase production of a certain type of wheel because of its demand, then
they should order more raw materials of such type/types of wheel. But
since it is forecast, actual demand is usually different as 2 months have
passed already, and vice versa. In the instances when forecast is low but
the actual demand is high, then advance ordering should be done.

RJ: What if the materials that are imported to your company have
damages, how do you deal with that? Have you experienced that? How
often do you experience that?

Ms. N: Theres a SOP that materials should be checked thoroughly,

especially the packaging, it should not be damaged, container must be
sealed. If there are damages like broken, wet or rusty containers, that
should be reported to the purchasing department then they will report it to
supplier to get it to insurance, then the insurance will cover the damages.
It depends on the supplier if they want the damaged materials to be
returned to them for further investigation, if whose fault it was. If its the
supplier or the shipping lines fault. While there are some suppliers who
just prefer the damaged materials to be disposed here, then theyll just
pay for the disposal fee. It just happens usually every 3 months.

RJ: What if the imports are delayed or the expected time to receive them
are not met, how do you deal with the supplier or exporter? Have you
experienced that? How often do you experience that?

Ms. N.: Yes, and in those instances, they will order from their other
supplier and they will do Air shipment which will be paid by the supplier
who caused the delay.

RJ: Are there importing restrictions to your company?

Ms. N: PNP imposed restrictions in sulfur which happened that Yokohama

have materials containing sulfur. So, they were required to get permits
from PNP to the point that materials are being delayed in shipment,
demurrage and storage accumulated from the port as they are waiting for
their permits. Election permits were also required from them during
election from COMELEC. Recently, process has been more easy as one of
the sulfur material has been removed from the restricted list. Theres just
one remaining sulfur that being asked for permit or clearance. Sulfur is
essential to production. Its one of the main raw material. Happened last
year because of the bombing issue. For the sulfur, permit to import, carry,
unload and operate should be done. Amounts are carefully monitored as
well. Permit application should be done every shipment, wherein they ship
every 2 months

Yokohama Tire Philippines, Inc. Page 28

 Interview with Ms. Liezl Franco, Logistics
Supervisor of Distribution Section
Management
(Export)
(Margie as Interviewer)

Margie: What are the materials/ products you export?

Ms. Franco: we export the finished products or the tires

Margie: To what country/ countries you export?

Ms. Franco: We have USA, wherein 50% are delivered to them, Europe is
30% then Asia is 20%. We also have Canada but its just seasonal.

Marg: What shipping company do you entrust your exports? Did you have
issues with them? What issues are they and usually?

Ms. Franco: Merchs Line, k-Line, Hapagloyd, NYK, Evergreen, APL, Cosco.
So far, theyre doing fine as our shipping lines. Theres just those instances
when theyre getting delayed especially when we have some delivery
targets. Another problem is when they dont have enough empty
containers, that could also cause the delay.

Marg: How often do you export?

Ms. Franco: 6 days in a week

Marg: What are the factors affecting the frequency and quantity of
demands of your exports?

Yokohama Tire Philippines, Inc. Page 29

Ms. Franco: The production delay usually affects due to some machine
trouble

(The rest of the Q&A are answered through email)

Q: What do you require from your importer/ clients/ customer?

A: Shipping requirements

Q: Who are the officers in charge in exporting and what are their tasks?

A: Section Manager /Logistics Supervisor / Shipping Scheduler responsible

for daily shipping , Document Supervisor responsible to all sipping
documents .

Q: What government agencies do you deal with?

A: Bureau of Customs, Clark Development Corp.

Q: What are you companys expenses when exporting materials?

A: Freight cost, trucking cost, in land cost or port charges

Q: How do you ship your exports? By land, water, air?

A: By land, some sample tires only are for air

Q: Do you limit your importers or clients demands?

A: It depends on our machine capacity

Q: How do you make sure that the materials you export are in good
condition?

A: By checking / conducting inspection from our QA Section

Q: Are there instances that your importer or clients had issues with the
products they received, like damages? How do you deal with those
instances? How does the shipping company gets involved?

A: We cannot avoid some incidents like the vessel during transportation,

insurance are responsible for claiming tires .

Q: How long should your client/ customer send their purchase orders?

A: One month

Q: Are there instances that youve been delayed? How do you deal with
that? Are there charges?

A: It depends on the vessel schedule while sailing / in transit. Shipping lines

will inform us and then we will inform the clients / customers.

Q: What are the usual reasons for your exports to be delayed?

Yokohama Tire Philippines, Inc. Page 30

A: Vessel schedule.

Q: Why just 3% of the tires are being sold locally?

A: Due to small quantity in ordering local tires.

With Ma. Teresita Nantes (Senior Supervisor of

Raw Materials in Purchasing Dept.)

Yokohama Tire Philippines, Inc. Page 31

 With Ms. Liezl Franco (Logistics Supervisor of
Distribution Section Plant Management
Department)

Yokohama Tire Philippines, Inc. Page 32

Yokohama Tire Philippines, Inc. Page 33
 PROJECT PROPOSAL

BY
YOKOHAMA SALES DEPARTMENT
OF
YOKOHAMA TIRE PHILIPPINES, INC.

Yokohama Tire Philippines, Inc. Page 34

 ABOUT
Yokohama Tire Philippines, Inc. Sales Department organizes
the tires that are being distributed and sold locally,
monitors local sales and makes sure that Yokohama tires
doesnt lose its place among the leading tire brands in the
Philippines.

Project Mission
To increase the local sales through an additional service
enterprise that will help promote and build up the
Yokohama brand in the local market.

Project Vision
Successful and continuous operation of the service
enterprise throughout the country in five years after its first
trial branches.

Project Proposal
Carwash Services among Yokohama Shops
throughout the Philippines

Project Description
The said proposal is planning to establish a Carwash
Services Shop beside every Yokohama Shops throughout
the Philippines. This will cater all the car types, using
Yokohoma tires or not. The staffs to be hired will have
proper training and will be oriented accordingly for them to
gain enough product knowledge because while doing the
carwash services, if the customer is not using our tires yet,
they will inform the customers on how good the qualities of
our tires are and will encourage them to switch to using our
tires.

Yokohama Tire Philippines, Inc. Page 35

 Location
The Car Wash Shops will be located beside Yokohama
Outlets. First target will be within Pampanga since the
manufacturing plant and the main office in the Philippines is
in Clark, Pampanga. There are five (5) outlets in Pampanga
so those would be the first batch to have their Car Wash
Services Outlets.
There will not be much to build for the Car Wash Services
for the outlets already have their spaces to use.

YOKOHAMA OUTLET in SAN FERNANDO, PAMPANGA

A division will just be made between the Carwash and the Repair
Shop.

Yokohama Tire Philippines, Inc. Page 36

 Proposed Budget
Initial Inventory
Equipments Price Quantity Unit Total

Squeegee 30 4 Pcs. 120

Clay Bar 350 2 Pcs. 700

Microfiber Cloth 15 10 Pcs. 150

Compressor 15000 1 Pcs. 15000

Host 30 20 Meter 600

Power Spray 500 2 Pcs. 1000

Brush 40 4 Pcs. 160

Sponge 35 4 Pcs. 140

Total Expense 17870

Yokohama Tire Philippines, Inc. Page 37

 Building Improvement
Materials Price Quantity Unit Total

Hollow Blocks 400 6 pcs. 2400

Sand 2100 1 d.truck 2100

Cement 220 15 bag 3300

Lumber 2x3 200 10 pcs. 2000

Nail 2 inch 70 1 kilo 70

Electric Wire 25 10 meter 250

Socket Outlet 45 2 pcs. 90

Electric Tape 12 5 pcs. 60

Light Switch 40 2 pcs. 80

Labor 500 3 person

(1day) 1500

Water Pipe Line 220 15 meters 3300

Fluorescent 120 2 pcs. 240

Faucet 300 2 pcs. 600

Total Expenses 15990

Daily Consumption of Materials

Items Price Daily Unit Total

Carwash Shampoo 120 15 Liters 1800

Turtle Wax 100 10 Liters 1000

Tire Black 120 10 Liters 1200

Daily Expenses 4000

Labor Cost for ManPower

Yokohama Tire Philippines, Inc. Page 38

 Position Daily Salary Man Power Days Total

Supervisor 550 2 26 28600

Staff 369 3 26 28782

Total Labor Cost per Month 57382

Utilities

Utilities Monthly Consumption Yearly Consumption

Electric 1,000 12000

Water 1,200 14400

Total 26400

Advertising Expenses
Price Unit Quantity Total

Motorcycle Rent 300 Pcs. 12 312

Pick Up Van Rent 1500 Pcs. 4 6000

Balloons 10 Pcs. 100 1000

Tarpaulin 200 Pcs. 12 2400

Fliers 1 Pcs. 500 500

Sound System 0 Set 4 0

Total Expense 10212

Initial Inventory 17870

Building Improvement 15990

Daily Consumption of Materials 120,000

Utilities 2,200

Advertising Expenses 10212

Labor Cost for Man Power 57382

Total Proposed Budget 223,654

Yokohama Tire Philippines, Inc. Page 39

 Cost Summary

Car Wash Services

Ext
ra
Sm Mediu Lar Lar
Types of Services all m ge ge

Regular 100 150 200 300

Premium 150 200 250 350

Regular- Wash with premium shampoo, vacuum, glass cleaning,
dash dusting, tire dressing

Premium- Wash with premium shampoo, vacuum, glass cleaning,

dash dusting, tire dressing and full body wax

Daily Projected Income

Monthly Sales- 12,600x30 = 378,000 Pric Quanti
Service e ty Total
Yearly Sales- 378,000x12= 4,536000
Regular (Small) 100 12 1200

Regular (Medium) 150 9 1350

Income Statement
Regular (Large) 200 5 1000
Year 2017 2018 2019
Regular (Extra Large) 300 2 600
Sales (Revenue) 4,536,0 498960 548856
Premium (Small) 00 150 160 2400
0
Premium (Medium)
Less Cost of Materials Used 200 121,606,02400
1,477,8 176660
Premium (Large) 70 250 9 00 0
2250
Gross Income
Premium (Extra Large) 3,058,
350 4 3,383, 1400
37219
130 600 60
1260
Total Sales
Operating Expenses 0

Rent Expense
Public Utility Deposit
Building Improvement 15990
Rent Security Deposit

Yokohama Tire Philippines, Inc. Page 40

 Miscellaneous
Advertising 10212
Utilities 26,400 26,400 26,400
Permit and License
688,58 688,58 688,58
Salaries and Wages 4 4 4
Employees Annual Contribution
Depreciation
741,18 714,98 714,98
Total Operating Expense 6 4 4
2,316,9 2,668,6 3,006,9
Net Income before Tax 44 16 76
741422 853957 962232
Income Tax (32%) .1 .1 .3
1,575, 1,814, 2,044,
Net Income 522 659 744
0.7164 0.7804 0.8320
Return of Investment 54 36 81

Yokohama Tire Philippines, Inc. Page 41