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Technological Institute of the Philippines

MANAGEMENT

STUDY

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Technological Institute of the Philippines

ACN PHILIPPINES CORPORATION

Main Office: Laguna TechnoPark Special Economic Zone, Biñan, Laguna

Phone No: (632) 437-2320

Fax No: (632) 437-2321

Manufacturing Office: Laguna TechnoPark Special Economic Zone,


Biñan, Laguna

Phone No: (632)437-2320

Fax No: (632)437-2321

Website: www.acnphicorp.com

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COMPANY PROFILE

ACN Philippines Corporation is a company that is engaged in the


production of Acrylonitrile from Propylene using Ammoxidation Process.
APC aims to produce high quality Acrylonitrile for the fast-developing
Philippine industrial sector and to continuously enhances its expertise in the
manufacture and marketing of its principal product, combined with
environmental protection and the health and safety of our people.

Company Mission

The ACN Philippines Corporation is committed to provide


affordable high-quality acrylonitrile with conformity to operational, safety,
health and environmental standards set by the local and international
government and to uphold the highest standard of profession, excellence
and efficiency in the conduct of business.

Company Vision

The ACN Philippines Corporation envisions itself to be a world-


class acrylonitrile manufacturing company committed to excellence and is
valued by its consumer and business partners.

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Company Logo

Figure 1.1: Company Logo

The company logo of CAN Philippines Corporation is a graphical


image embodying different symbols which are important for they will
represent the companies’ brand and establish corporate identity. The
chemically-bonded molecules are the structure itself of acrylonitrile. The
black color surrounding the molecule symbolizes elegance and power of

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Technological Institute of the Philippines

PRE-OPERATING PERIOD

Prior to the actual operation of the ACN Philippines Corporation,


part of the process to fulfill the necessary pre-operating requirements. APC
believes that preparation is the vital key in the achievement of the success
in a certain company. Decision making skills are practiced to schedule the
plant activities so that the product will be produced effectively. Since the
pre – operating period involves activities that demand number of months
before the completion, it is necessary to maximize the available time. While
the other departments are performing each plant activity, the other
departments are also doing their part for the achievement of common goal.
Timetable will be followed to determine which activity should be
prioritized to avoid waste of time, money and resources. Gantt chart will
help to carry out successfully the pre-operating and operating activities.
Here, the activity is being specified with its corresponding time of
completion and this will tell whether the company is in the right track of
accomplishing the target.

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The Executive Department

Figure 1.2. The Pre-operating Period Executive Department

Chairman of the Board


The Chairman of the Board is the highest elected official of the
corporation. The Chairman has no right to act or speak on behalf of the
Board like any other official unless specifically granted in the bylaws, in
Board policy or by resolution. The main task of the Chairman is to ensure
that the Board of Directors and its members are aware of and fulfill their
governance obligations, comply with applicable laws and bylaws, conduct
Board business effectively and be held responsible for their performance.

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Board of Directors
The Board of Directors lead by the Chairman represents the major
project stakeholders and presents outlook to the Project. It is an obligation
of the Board to give insights to the team with regards to the stakeholder
concern, technical recommendation and other essential initiative. To give
assistance in resolving issues and risks, use influence and authority to
support the project for its accomplishment and communicate in their
organizations on the project are their responsibilities as well.

President
The President is the executive within an organization who
administer a project. The President has the following responsibilities:
1. Approves plan, schedule, and budget activity alignment with regards to
organizational strategy and compliant with policy
2. Ensures efficient asset utilization to maximize stockholders value
3. Preserve project c focus on attainment of its objectives
4. Supervise the progress of the project plan
5. Approves final deliverables
6. Removes any hindrances to the success of the project, and
7. Communicates about the project inside the agency and with external
stakeholders.

Legal Counsel
The Legal Counsel is necessary to take charge for the contracts and
agreements made to and by the company. The company shall be guided in
making such actions with legally acceptable deeds. The Counsel ensures
that the interests of the company are protected under the existing laws and
to make sure that no terms entered into will bring loss to the company in
case of a legal dispute.

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Executive Secretary
The Executive Secretary provides personal organizational support
to the President of the company. Responsibilities involves general clerical,
receptionist and project-based work. The Secretary also projects a
professional company image through in-person and phone interaction. The
following tasks are included as well:
1. Prepares correspondence, reports, and materials for publications and
presentations
2. Set-ups travel arrangement of President
3. Accommodates and entertains company visitors
4. Arranges calendar of the President
5. Prepares and maintains expense report of the President
6. Organizes meetings and conferences
7. Creates, transcribes, and distributes meeting agendas and minutes
8. Performs general clerical duties to include but not limited to:
photocopying, faxing, mailing, and filing
9. Maintains hard copy and electronic filing system
10. Researches, prices, and purchases office furniture and supplies

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Technological Institute of the Philippines

Human Resource Department

Figure 1.3. Human Resources Department organizational chart

Recruitment of employees and organizational planning are the two


essential functions of the Human Resources Department in the pre-
operating period. The department evaluates the skills and competency of
every potential employee in regards to what the company needs. Having a
well staffing of management, the objectives of the company can be attained.
The department ensures that people in the organization have a general
direction which they are working towards. Organizations which have result
oriented people and an unambiguous direction are always more effective.

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Finance Department

Figure 1.4. Finance Department organizational chart

The Finance Department manages both the corporate and plant aspect of the
business. The functions of the department include the following:
1. Prepares the company budget
2. Prepares the financial management
3. Manages the investments of the company
4. Manages the taxes
5. Manages the financial risks
6. Prepares the Interim and Annual Financial Statements
7. Secures the accounts
8. Manages inventories

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9. Computes the costing of the product


10. Prepares the salaries, bonus or cash incentives of the employees

The Marketing Department

Figure 1.5. Marketing Department organizational chart

Marketing department has same three major responsibilities in the


pre-operational and operational period: Development of marketing
objectives and strategy, conducting researches and examining customer
needs, and advertising and promotion. Complexity of the job from each
period makes the difference.

Development of marketing objectives and strategy


Marketing strategy in the pre-operational period is usually from
benchmarking with comprehensive market study. Benchmarking has
something to do with the business practices imitation of well-established
company in order to enhance one’s business. Objectives and strategy
determination is the foundation of other marketing functions.

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Conducting researches and examining customer needs


Marketing is considered as a dynamic subject matter for a number
of factors may affect the consequence of a single decision. Marketing
researches enables the department to deal with the latest trend and current
market flow. Consumer needs monitoring aids to quantify the product
demands.

Advertising and Promotion


Finding customers is the crucial tasks for every newly established
business. This could be a challenging role for the marketing department.
Creative advertising and promotion can encourage consumers and acquires
more revenue.

The Research and Development Department

Figure 1.6. Research and Development Department organizational chart

The main functions of the Research and Development department during


pre- operational period include the following:
1. Ensures the finish product meets the product specification
2. Researches the product according to allocated budget

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3. Checks if the product meets production costs


4. Develops the product to comply with regulatory requirements and
specified quality levels
5. Researches on how to improve the efficiency of the process
6. Develops the formulations to increase the percentage yield of the
product.

Operations Department

Figure 1.7. Operations Department organizational chart

The primary task of the Operations Department is to oversee, design,


and redesign operations in the manufacture of the product. It involves the
responsibility of ensuring that the production processes are efficient in
terms of using the optimum resources needed and effective in terms of
meeting the customer’s requirements. They shall be responsible for
finalizing the plant lay-out, constructing the plant, finalizing the plant and
equipment design and specifications. Aside from the design of all

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equipment and processes to be employed by the company, its task also


includes the quality testing of the raw materials and intermediate and final
products by taking and testing samples from different sections of the
production to ensure quality. Moreover, the safety inspection and
maintenance of the company, which is particularly crucial in the production
area, is under the responsibility of this department.

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OPERATING PERIOD

The ACN Philippines Corporation intends to operate three hundred


thirty days in a year, seven days in a week and twenty-four hours in a day.
Plant shutdown will happen during April, three days are allotted for the
cleaning, repairing and checking of the equipment. The workers are
required to follow the work schedule set by the company as stated by the
provision of the Presidential Decree No. 442 otherwise known as The Labor
Code of the Philippines.
The ACN Philippines Corporation is divided into five major
departments: The Research and Development, Human Resources, Finance,
Marketing and Sales, and Operations Department.
Administration and office employees will work during Monday to
Saturday from eight o’clock in the morning until five o’clock in the
afternoon. Lunch break is from twelve noon until one o’clock in the
afternoon. Fifteen minutes break is allotted in the morning and in the
afternoon. These are from ten o’clock in the morning and from three o’clock
in the afternoon.
Production workers will work during Monday to Sunday. Three
shifts are available, from six o’clock in the morning until two o’clock in the
afternoon, from two o’clock in the afternoon until ten o’clock in the evening
and from ten o’clock in the evening until six o’clock in the morning.
Rotation of the shifting schedule is practice after three months.
The first team in the first shift will have a break from ten until ten
thirty in the morning while the second team will have a break from ten thirty
until eleven in the morning. On the other hand, the first team of the second
shift will have a break from six thirty until seven in the evening while the
second team will have a break from seven until seven thirty in the evening.
Finally, the third shift of the first team will have a break from two until two

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thirty in the morning while the second team will have a break from two
thirty until three in the morning.
To motivate the employees to contribute to the achievement of
company visions, the company will have an Annual Search of the Top 10
Outstanding Employees of the Year. Furthermore, these programs aim to
recognize the valuable contributions of the employees to the company.
The company will apply for ISO 9001:2015 certification to assure
the clients and business partners that the company increases its effectiveness
and efficiency through continual improvement in systems and products/
service quality. Through this certification also, the company will able to
prove that it is a customer-focused organization.
Furthermore, the company practices the Corporate Social
Responsibility to ensure the active compliance with the law, ethical
standards and international norms. Yearly evaluation for the company will
be done to assess the quality of management in people and processes and to
quantify the impact on the society on various areas. This will serve as a
guide in achieving the visions of the company.

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The Executive Department

Figure 1.9. The Executive Department organizational chart

The Chairman of the Board


The Chairman is responsible for leadership of the Board and
manage and supervise all aspects of the company as a whole. His task is to
develop and manage relationships and communicate with the funders,
partners, and other stakeholders and to review corporate financial
statements and receive confirmation from the chief financial officer.

The Board of Directors


The board of directors must oversee, at all times, the functions in the
company and makes sure it grows both locally and internationally. The
board works as one in making decisions in favor of the company, the
employees, the clients, and the law.

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President
The President is the executive within an organization who administer a
project. The President has the following responsibilities:
1. Approves plan, schedule, and budget
2. Ensures activity alignment with regards to organizational strategy
and compliance with the policy
3. Ensures efficient asset utilization to maximize stockholders value
4. Preserves project focus on attainment of its objectives
5. Supervises the progress of the project plan
6. Approves final deliverables
7. Removes any hindrances to the success of the project, and
8. Communicates about the project inside the agency and with external
stakeholders.
9. Monitors the progress of the company towards the achievement of
the visions.
10. Represents the company in business conventions
11. Promotes harmonious relationships with the clients of the company

The General Manager


The main responsibility of the general manager is to administer all
the department. He shall assist the CEO in his administrative function,
directly reports to the CEO, and implements the policies upheld by the CEO,
in behalf of the Board.

Legal Counsel
The Legal Counsel is necessary to take charge for the contracts and
agreements made to and by the company. The company shall be guided in
making such actions with legally acceptable deeds. The Counsel ensures

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that the interests of the company are protected under the existing laws and
ensures that no terms entered into will bring loss to the company in case of
a legal dispute.

Executive Secretary
The Executive Secretary provides personal organizational support
to the President of the company. Responsibilities involves general
clerical, receptionist and project-based work. The Secretary also
projects a professional company image through in-person and phone
interaction. The following tasks are included as well:
1. Prepares correspondence, reports, and materials for publications and
presentations
2. Set-ups travel arrangement of the President
3. Accommodates and entertains company visitors
4. Arranges calendar of the President
5. Prepares and maintains expense report of the President
6. Organizes meetings and conferences
7. Creates, transcribes, and distributes meeting agendas and minutes
8. Performs general clerical duties to include but not limited to:
photocopying, faxing, mailing, and filing. Maintains hard copy and
electronic filing system
9. Researches and purchases office furniture and supplies

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The Human Resources Department

Figure 1.11. The Finance Department organizational chart

The department evaluates the skills and competency of every


potential employee in regards to what the company needs. Having a well
staffing of management, the objectives of the company can be attained. The
department ensures that people in the organization have a general direction
which they are working towards. Organizations which have oriented people
and an unambiguous direction are always more effective

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Technological Institute of the Philippines

The Finance Department

Figure 1.11. The Finance Department organizational chart

The Finance Department manages both the corporate and plant aspect of
the business. The functions of the department include the following:
1. Prepares the company budget
2. Manages the financial
3. Manages the investments of the company
4. Manages the taxes
5. Manages the financial risks
6. Prepares the interim and annual financial statements
7. Secures the accounts
8. Manages the inventories
9. Computes the costing of the product
10. Prepares the salaries, bonus or cash incentives of the employees.

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The Marketing and Sales Department

Figure 1.12. Marketing and Sales Department organizational chart

Marketing and sales department has three major responsibilities


in the operational period: development of marketing objectives and strategy,
conducting researches and examining customer needs, and advertising and
promotion. Complexity of the job from each period makes the difference.

Development of marketing objectives and strategy


Marketing strategy in the operational period is from benchmarking
with comprehensive market study. Benchmarking has something to
do with the business practices imitation of well-established company
in order to enhance one’s business. Objectives and strategy determination
is the foundation of other marketing functions.

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Technological Institute of the Philippines

Conducting researches and examining customer needs


Marketing is considered as a dynamic subject matter for a number
of factors may affect the consequence of a single decision. Marketing
researches enables the department to deal with the latest trend and current
market flow. Consumer needs monitoring aids to quantify the product
demands.

Advertising and Promotion


Finding customers is the crucial tasks for every newly established
business. This could be a challenging role for the marketing department.
Creative advertising and promotion can encourage consumers and acquires
more revenue.

The Research and Development Department

Figure 1.13. Research and Development Department organizational


chart

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The main functions of the Research and Development department during


operational period include the following:
1. Ensures that the finish product meets the product specifications
2. Researches the product according to allocated budget
3. Checks if the product meets production costs
4. Develops the product to comply with regulatory requirements and
specified quality levels
5. Researches on how to improve the efficiency of the process
6. Develops formulations to increase the percentage yield of the
product.

The Operations Department

Figure 1.14. Operations Department organizational chart

The Operations Department is responsible for effective conversion


of raw materials to desired finish products. The scheduled amount of
products to be produced in specific time must be attained. The department

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makes sure that there is enough supply of finished products for market
distribution. The stage processes for production of acrylonitrile must be
followed properly to obtain the desired specifications introduced to the
customers.

Quality Assurance and Quality Control Division


The Quality Assurance and Control Department is responsible for
checking the specifications of the raw materials delivered by the supplier.
It is their responsibility to ensure that the raw materials delivered conformed
with the specifications needed in the production of Acrylonitrile.
Furthermore, the Quality Assurance and Control department makes
sure that the finished products meet all the specifications needed. The
department conducts standard physical and chemical tests for the products.
Standard operating procedures for testing, preparation of chemicals and
process of production are prepared by the department. Material Safety and
Data Sheets for all the chemicals involved in the production are handled by
this division.

Environment, Health and Safety Division


The Environmental, Health and Safety department sets
environmental, health, and safety policy for the Company. In accordance
with these policies, employees, visitors, and guests have the responsibilities
for complying, implementing, communicating and/or ensuring adherence to
environmental, health and safety regulations, principles and practices. The
department provides technical expertise, consulting assistance, and services
to assure compliance with legal requirements.

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PROJECT NETWORK MILESTONE

Successful projects require careful upfront planning. A good project


schedule will help the corporation to meet project objectives. It also helps
manage project risk effectively by identifying, analyzing and
communicating inevitable changes to project scope and objectives. This
section presents the stages of projected activities of the company, carried
out within time and budget constraints, in detail together with their
estimated duration and target implementation. There are certain one-time
activities that the board should conduct during the start-up of the
corporation. The ACN Philippines Corporation provide rich and diversified
schedule of activities. The Gantt chart represents the various schedules and
the process evaluation review technique activities are well planned to
visualize the time allotted to ensure the reality and accomplishment of the
project.

1. Overall Feasibility Study


During this phase, the overall feasibility of the project is
being studied to prove that the project is possible to accomplish in
accordance with market, technical and financial aspects and
standards. There are three (3) feasibility studies to be conducted:

a. Market Feasibility Study


Market Feasibility Study presents the data on the size and
characteristics of the market that the corporation intends to join. It
provides valuable information on the historical demand and supply
chain of the desired product to produce which can be used to project
the demand and consumption of the specified product in the next 10
years by statistical methods of projection. It also investigates on the

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possible competition in the market once the company has already


been established and operational. It gives a brief background and
description of the market, including its buyers and users as well as
the locations where the product shall be distributed and/or sold. The
study also examines the environment of the market, i.e. the
competitiveness of the company in the market in terms of the
product’s selling price, methods of transportation and distribution,
trade practices, etc.

b. Technical Feasibility Study


Technical Feasibility Study presents the technical part of the
project feasibility study which involves the process selection,
construction of process description and process flow diagram,
detailed calculations on the overall material and energy balances
of the proposed process, design calculations on every equipment
required by the process, construction of process control
schemes for each equipment and other technical aspects that require
the in-depth knowledge technical professionals such as engineers.
All of these shall be conducted in compliance with the economic,
environmental, safety and ethical standards set by the existing
regulations.

c. Financial Feasibility Study


Financial Feasibility Study presents the data on the funds
needed for the pre-operating expenses, fixed assets and working
capital. The study starts with the determination of initial capital
costs from the data on pre-operating expenses, fixed capital, and
working capital. After having determined the sources and cost of
financing, the projected financial statement is conceptualized where
the 10-year cash flow and income statement are presented and

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evaluated. Finally, financial analysis is presented to discuss profit,


return on investment, return on equity and breakeven analysis based
on the financial data secured by the study.

2. Incorporation
In this phase, the company will take action to legally
establish the corporation. Incorporation is done in accordance to the
Corporation Code of the Philippines. The company will file its own
article of incorporation wherein the corporates and incorporators,
stockholders and members of the corporation are identified and the
shares of stock of the corporation are determined. The article is
submitted to the Securities and Exchange Commission. The
company will also construct its by-laws as stated by the code.

3. Sourcing of Funds
Funds will be gathered after the general project planning. At
this stage, the accumulation of funds will be done by the
stockholders through giving the agreed amount of money of each
stockholder.

4. Hiring of Key Personnel


The responsible for the hiring and training of key personnel
are the Board of Directors and it is their duty to choose for the best
applicant suited for the position. Those who are in the highest
position shall be responsible with the requirement of those who are
in the lowest position.

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5. Plant Site Acquisition


The location of the plant can have a crucial effect on the
overall profitability of a project. Plant site acquisition must undergo
legal process. It is to ensure that the possession of land will not cause
any a legal arraignment in the future.

6. Finalize Plant Lay-out Design


After the necessary paper has been settled, the type of
construction is being considered on the preparation of engineering
specification. It can be done simultaneously to the acquisition of the
land site. Also, the type of equipment to be used in the construction
of the building must be detailed. In here, the project engineer is the
one responsible for the preparation.

7. Plant Construction
Plant construction includes a chain of project management,
engineering design, procurement and construction management and
this will be done by the contractors. Plant construction also requires
an application of construction license from the local government and
the Department of Environment and Natural Resources. Most of the
company’s capital goes to the plant construction. Possible delays in
the deliveries of the major pieces of the equipment to be used in the
construction and also natural calamities are being considered during
the construction. The construction engineer is the one responsible
for the supervision of the construction works. It includes the
pavement of reinforcement, digging, excavation, pouring,
cementing, plating, plumbing, and other electrical installation in the
construction of the building.

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8. Finalize Design and Specification


All the desired specifications, parameters and design of the
equipment needed for the process to operate should be accomplished
within this period. Finalization will provide clear information about
the requirements of the product and its process and how each of the
equipment should be placed inside the plant that is applicable for its
use.

9. Equipment Order and Delivery


Preparation of engineering specification enables the
purchasing department to know the specification requirement of the
equipment that they have to purchase. The procurement of capital
equipment ties up money for long periods of time and the longer the
period, the greater the uncertainty and risk involved. It must be done
correctly the first time, as mistakes are not easily rectified. The
company must negotiate well and fairly to the selected supplier.
Furthermore, the following factors will be taken into consideration
in purchasing necessary equipment: cost, capacity, and efficiency.

10. Hiring of Personnel


Applicants who were interviewed and accepted shall
undergo training to learn their workloads. Training of personnel
includes numbers of orientation, team buildings and seminars that
aims not just discuss the technical aspect of their job but also to
create an atmosphere of cooperation and camaraderie within the
employees and to instill integrity and loyalty for the company.

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11. Installation of Equipment


The equipment that has been ordered and delivered will be
installed within this period. Operators will conduct hands-on
training on how to operate and fix malfunctioning equipment to
ensure the safety and efficiency of the process.

12. Order and Delivery of Raw Material


Raw materials purchasing involves setting up raw materials
technical specifications based on the production requirements,
identification of the supplier, communicating with the suppliers
through requests of proposals or request of information and
negotiating with the chosen supplier regarding price and
availability. Agreed conditions between the company and suppliers
are contained and sealed in a contract. Company shall check whether
the raw materials delivered by the supplier meet the technical
specifications provided during the purchasing. Accepted raw
materials shall be kept for storage, otherwise retained for immediate
supplier recall.

13. Pilot Testing


In this phase, the plant is supposed to be fully constructed
and ready to operate. The plant will be operated such that it produces
the desired product. The trained personnel will be in-charge of the
pilot testing where they will apply their technical knowledge in the
operating the plant.

14. Product Testing


In this phase, the product produced from pilot testing shall
be tested in the laboratory. The properties and specifications of the
produced product shall be determined. The results from these tests

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are to be evaluated and compared with the pre-existing table of


standards. This is to ensure that the customer who orders the product
will get it at their desired specifications.

15. Marketing Plan


In this phase, the marketing strategies are being planned.
Techniques that make the product sell in the market such as
advertisements, promotion, product packaging, etc. will be
conceptualized.

16. Normal Operations


Normal operation is done right after the trial run that has
been thoroughly evaluated and proved to satisfactory. The products
being produced conformed to the standards set.

17. Accepting and Delivery of Orders


In this phase, orders of the product will be accepted and
delivered to the customers.

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Table 1.1 Time Table of Projected Activities of APC

Description Head/Department Duration Expected Expected


Start Date End Date
1 Feasibility of the Board of Directors 8 weeks 01/06/18 03/03/18
Study
2 Incorporation Board of Directors 7 weeks 01/06/18 02/24/18
3 Sourcing of Funds Board of Directors 8 weeks 01/13/18 03/10/18
4 Hiring of Key Board of Directors 8 weeks 01/13/18 03/10/18
Personnel
5 Plant Site Finance Dept. 3 weeks 02/03/18 02/24/18
Acquisition
6 Finalize Plant Board of Directors 4 weeks 02/03/18 03/03/18
Layout Design
7 Plant Contractors 37 weeks 03/03/18 11/17/18
Construction
8 Finalize design Board of Directors 10 weeks 03/03/18 05/12/18
and Specifications
9 Equipment Order Finance Dept. 20 weeks 05/12/18 09/20/18
and Delivery
10 Hiring of HR Dept. 13 weeks 10/20/18 01/19/19
Personnel
11 Installation of Operations Dept. 14 weeks 10/20/18 01/26/19
Equipment
12 Ordering and Finance Dept. 12 weeks 11/03/18 02/09/19
Delivery of Raw
Material
13 Pilot Testing Operations Dept. 17 weeks 02/23/19 06/22/19
14 Product Testing QC Dept. 12 weeks 03/30/19 06/22/19
15 Marketing Plan Marketing Dept. 13 weeks 03/30/19 06/29/20
16 Normal Operations Dept. 522 06/30/19 06/30/29
Operations weeks
17 Accepting and Finance Dept. 522 06/30/19 06/30/29
Delivery of weeks
Orders

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