MARIANO MARCOS STATE UNIVERSITY

College of Engineering
City of Batac, Ilocos Norte
Department of Agricultural and Biosystems Engineering

“THE FEASIBILITY STUDY ON

UTILIZING SQUASH AS RAW
MATERIALS IN CHIPS PRODUCTION”

Submitted by:

BULIL-LIT, LEA JHANE G.

CATABAY, JAMIE CHRISTINE B.
COLLADO, FRANK DENNIEL C.
GALACGAC, YMA JENINA G.
MARTINEZ, MARK DAVE C.
TAYTING, ARIEL Y.
TUCPI, JEFFREY V.

BSAE - VA

Submitted to:

MRS. ETHEL REYNDA CALIVOSO

December 2018
 SECTION I. PROJECT DESCRIPTION

1. TITLE

A project proposal entitled “A Feasibility Study on Utilizing Squash as Raw Material in

Chips Production”.

2. PROPONENT

The CurBitz Chips is a food innovation of the Agricultural Engineering Students of

the Mariano Marcos State University of the College of Engineering.

The proponent of this product is spearheaded by JEFFREY V. TUCPI along with his

team, LEA JHANE BULIL-LIT, JAMIE CHRISTINE CATABAY, FRANK DENNIEL COLLADO,

YMA JENINA GALACAC, MARK DAVE MARTINEZ, and ARIEL TAYTING.

In Ilocos Norte alone, squash is relatively abundant and cheap. However, problem

arises on its consumption. In this modern era where food innovation has become a trend

and fascination to most people, children forget the importance of vegetables in their body

because of the increasing number of food stalls everywhere. Nowadays, children became

picky in terms of food that they consume especially vegetables.

To address the foregoing problem, the proponents decided to utilize squash as chips

to help parents to feed their children with vegetable without forcing them to do so. Hence,

utilization of squash as a chip product could be a way to solve the foregoing problem.

3. TYPE AND CATEGORY

The business enterprise is an Agri- based production and post- production and

processing activities categorized under Small Enterprises.

 4. LOCATION AND COVERAGE

In considering the location, the team decided to consider three factors:

Accessibility. Under accessibility, the team considered the source of money

of its consumers. Grade schoolers are the main target consumer of the product

hence, it would be more economical to them if the stalls will be accessible to them

and partnering with school canteens will be an advantage.

Raw material. The raw material of the product is directly bought from the

farmers. Hence, the freshness and quality of the product will be ensured.

Competition. Competion with the product is low since squash chips has low

product competion in the market.

Considering the three factors mentioned above, the best location to

establish the site will be established in Brgy. Nalupta, City of Batac, Ilocos Norte beside

the public market. The enterprise will be 1000𝑚2 .

5. DURATION

The team decided that the enterprise will be operating for 15 year. At this range,

the product quality will be made to adapt through time depending on the demand of the

consumers. Other products utilizing squash will be also pioneered. To ensure the

continuous booming of the enterprise, additional product line will also be added for the

consumers to have expanded choices. Aside from that, the lifelong dedication of the team

will be ensured in the span of its operating years to ensure its commitment to its

consumers.
 6. FUNDING REQUIREMENT

6.1 Loan

For our budgetary expenses, the enterprise will loan 30 % of our total

expenditures (Php 1,659,003.00) in the Land Bank of the Philippines with an interest of 2%

per month. The money loaned will be paid in 2 years as an agreement with the bank.

6.2 Equity

The other 70% of the fund in implementing the business came from the

owner and co- owners of the enterprise in which each of us will be contributing Php

3,871,007.00 The 30% of the overall expenses will be loaned and the 70% will be

contributed by the owners of the business.

6.3 Total

The enterprise needs Php 5,530,010.00 to begin the said business.

7. CONTACT PERSON

The enterprise will be active in social media such as Facebook and twitter. In case

of conflicts and suggestions regarding the product and the enterprise a customer service

representative will be designated along with a social media correspondent. The official

email and contact number of the enterprise will be skwirtzenterprises@gmail.com and

+63927-022-7749.
 8. JUSTIFICATION AND OBJECTIVES

The enterprise aims to provide a healthy snack to the people especially; grade

schoolers to enjoy eating healthy vegetables at the same time, provide them the benefits of

the vegetable. It could also help parents to feed their children easier since it will be a tasty

snack packed with the health benefits of a vegetable.

This enterprise aims to:

1. Gain at least P 10, 000.00 as a profit or higher every week.

2. Be in the industry for 10-15 years and there must be still high demand

for the product.

3. Pay all the debts and all the money spent in implementing this

enterprise should come back after 3 years.

9. BRIEF DESCRIPTION

To address the frustration of parents to their children for not eating vegetables, the

team came out with an idea of utilizing squash as chips to help them feed their children

with vegetables. Because of the rampant increase of food stalls in the locality, children

became too picky on the food that they eat brought about by their expanded choices on

food products ranging from junk foods up to instant meals to street foods. These foods

contain preservatives and some toxins which could lead to serious sickness.

To ensure the affordability of the product, the squash will be bought directly from

the farmer to ensure its freshness and better quality in terms of taste.

The commitment of the enterprise is to provide cheap yet high quality product is its

main advocacy. Ensuring a high quality standard and an affordable product.

10. PRE-IMPLEMENTATION SCHEDULE
July August September October November December

Idea Generation

Data Gathering

Preparation of FS

Hiring Labourers

Buying Materials

Building Construction
 SECTION II. MARKETING ASPECT

1. EXSTING MARKETING INFORMATION

1.1 Product/ Service Description

CucurBitz Chips is literally made up of squash which is basically grown in the

province. The product’s name came from the genus of the vegetable “Cucurbita” combined

with the word “Chips”.

CucurBitz Chips are chips that are golden yellow in color. This product aims

to help parents feed their children who have difficulty in eating vegetables. The product is

relatively healthy because of the direct material which is squash and it is ensured to have

minimal amount of preservatives and additives. The net weight of the product is 45 grams

per primary package.

This product can be seen in the business branches of the enterprise, convenient

stores, and restaurants in the municipality and school canteens. The affordability of the

product is the main priority so that all target customers of all various ages could buy the

product.

1.2 Target Market

The product’s target customers are people of all ages that could be sensory

appealing for them. Aside from that, we want them to shift their goodies into a healthy one

especially for the kids. However, the primary customer of this product are parents who

have picky children. The product will be a big help for them in terms of feeding their

children because of its health value and it is utilized to adapt on the taste buds of children.
 1.3 Supply and Demand Trends

1.4 Competitor’s Current Marketing Arrangement

The direct competitor of the enterprise would be the enterprises within the vicinity

of the location of the site. Specifically, those small enterprises producing chips and are

pasalubong centers. The identified enterprises are Nana Ros’s Chichacorn and Namnama’s

Cornick. These enterprises dominate in terms of producing chips such as taro, camote, and

banana chips and even Cornicks.

These identified competitors usually market their products in grocery stores most

especially in pasalunong centers, souvenir shops and pasalubong centers. Usually, they sell

their products per pack for Php. 35.00 or Php. 100 per 3 packs. A single pack’s net weight is

100 grams.
 In this kind of enterprise, the competition is high because of the identified

competitor has been running the business for a long period of time already. Hence, the

stronger marketing technique is needed in order to match-up with the existing competitor.

2. SUPPLY ANDDEMAND ANALYSIS

CucurBitz Chips’ main ingredient is squash which is abundant all year round. The

availability of raw material is a good indicator of its continuous operation until the end of

the lifespan of the enterprise. Through the availability of the raw material, it is guaranteed

that the demand of the product will be met. Through rigorous marketing strategies, the

demand for the product will be high since it will also be sold through online selling

because. The guarantee of its continuous operation is based on the commitment of the

enterprise to bring a high yet affordable product.

3. PROJECTED SALES AND REVENUES

3.1 Volumes

The volume of production for this product will be 4,000 packs in a day a total

24,000 packs in a week a single pack has a net weight of 100 grams. A single pack will be

sold at Php. 35.00 SRP.

3.2 Product Prices/ Service Fees

The price of the product is based on the prices of the competitor’s product, however,

the net weight the product is higher than the competitor’s products to attract more buyers.
Though the product has higher net content as compared to its competitors, it is made sure

that the return of investment would exceed the capital in establishing the enterprise.

Price of the CucurBitz Chips is Php. 35.00/pack SRP.

4. PROPOSED MARKETING STRATEGY

4.1 Channels of Distribution/ Delivery System

The product is distributed through direct selling to have a direct contact with

the costumers to give first- hand information about the product and to have immediate

feedback coming from them. In addition, the product is being distributed also by retailing

which involves interaction with the clients that would result to easier access to the children

and parents who wish to have feed their children with vegetables. Customers can also

order the product by though their phone through contacting the enterprise with their given

contact number. Other than the provided contact number, the enterprise could be reached

through social their social media account. For bulk orders, pre-orders should be made be

made three working days before the actual date of purchase. Delivery system is also

applicable since the enterprise has their private delivery van.

4.2 Product/ Service Quality and Packaging

CucurBitz Chips is stored at room temperature packed in its personalized

enterprise label. The label will consist of the Brand name of the product, net weight,

nutrition facts, ingredients, manufacturer, contact number of the manufacturer, barcode,

FDA certification, expiry date, and instruction on the consumption and storage of the

product. The packaging is a crucial step in which rigorous inspection will be maintained.
The enterprise will make sure that every product will follow a safety standard for the

customers.

4.3 Promotions

CucurBitz Chips is advertised through social media such as facebook and

twitter in order to attract a higher number of customers. Moreover, in marketing the

product, tarpaulins and pamphlets will be used also especially that the product is only

started.
 SECTION III. TECHNICAL ASPECT
1. PRODUCT/SERVICE TECHNICAL DESCRIPTION

The Product shall be food innovation in which it is a combination of a healthy

snack and a way to enjoy eating vegetables. Its nutritional value shall be an differentiate the

product among its competitors and the passion of the enterprise to provide a quality product and

service to its customers. The product can be both use as snack and instant nutrition booster to its

consumers.

2. PRODUCTION/SERVICE-PROVISION PROCESSES

Process Flow of Squash in Chips Making

Potato Sorting Washing

Sulphur oxide Blanching Peeling

treatment

Drying Frying Spicing & Flavouring

Packaging

Storage

Marketing
 3. PRODUCTION/ SERVICE PROVISION SCHEDULES

All the workers shall be mandated to perform their assign task and shall reach a

certain quota in producing the product. Proper trainings in preparation shall be given to the

workers in order to maintain a high quality product output. Workers shall maintain a high

sanitation and must observer cleanliness in their work area. From primary processes up to

packaging and distribution, proper handling of the product shall be rigorously observed.

4. INPUT/RAW MATERIAL REQUIREMENTS

Raw Materials Quantity Cost/unit(Php) Price (Php)

Squash 12000 kg 50 600,000
Oil 3600 liter 100 360,000
Sugar
(white) 200 kg 60 12,000
(brown) 200 kg 50 10,000
(washed) 200 kg 55 11,000
Cheese 200 kg 100 20,000
Salt 200 kg 25 5,000
Garlic powder 200 kg 600 18,000
Chili powder 8 kg 3,500 28,000
Total Cost 1,064,000
 5. BUILDING/FACILITY/EQUIPMENT REQUIREMENT

5.1 Building and Land

Quantity Price (Php)

Building 1 1,500,000
Land 1,000 𝑚2 400,000

Total Cost 1,900,000

5.2 Fixtures

Facilities Quantity Cost/unit(Php) Price (Php)

Chairs 150 230 34,500
Tables 8 1,500 12,000
Total Cost 36000

5.3 Equipment

Quantity Cost/unit(Php) Price (Php)

Slicer 2 5,000 10,000
Dryer 1 1,000 1,000
Frying pan 5 1,500 7,500
Aircon 2 20,000 40,000
4 wheels(L300) 1 200,000 200,000
Computer 5 15,000 75,000
Sealer 2 500 1,000
Burner 2 200 4,000
Total Cost 338,500
 5.4 Supplies

Quantity Cost/unit(Php) Price (Php)

Apron 2640 pcs 100 264,000
Face mask 2640 pcs 5 13,200
Gloves 2640 pairs 10 26,400
Hairnet 2640 pcs 10 26,400
Tissue 2400 packs 10 24,000
Packaging plastics 96000 packs 1.5 144,000
Laboratory shoes 110 pairs 150 16,500
Towels 2640 pcs 100 264,000
Total Cost 778,500

Quantity Cost/unit(Php) Price (Php)

Paper 5 packs 600 3,000
Ink 2bottle(250 ml) 1000 2,00
Ballpen 1 box 1000 1,000
Total Cost 4,200

5.5 Tools

Quantity Cost/unit(Php) Price (Php)

Measuring cups/spoons 20 550 11,000
Cups 110 20 77,00
Knifes 110 50 5500
Peeler 110 100 110,00
Funnel 5 50 250
Chopping board 5 200 1,000
Storing box 20 200 4,000
Plate 90 100 9,000
Total Cost 449,450

6. LABOR/UTILITY REQUIREMENT

Quantity Salary/day(Php) Salary/month(Php)

Factory worker 110 320 844,800
Security Guard 2 450 21,600
Customer Service 1 320 7,680
Representative
Social Media 1 320 7,680
Correspondent
Human Resource 3 550 39,600
Total Salary 921,360

Quantity Cost/unit(Php) Cost/month(Php)

Electricity 3500 kw 6 21,000
Communication 5,000
Water 2,400 𝑚3 5 12,000

Total Cost 38,000

7. QUALITY CONTROL SYSTEM

For the final inspection, standards set by the DOST and DTI will be followed.

Strict compliance shall be observed before distributing the product. The enterprise will ensure

that the quality of the product shall consider the demand of the customer in terms of the physical

attribute of the product and the taste of the product.

 8. WASTE DISPOSAL SYSTEM

The waste produced during and after the production shall undergo waste

management. The enterprise shall ensure that it will not cause environmental pollution within its

vicinity and shall comply with the rules and regulation of the municipality in waste disposal.

9. PRODUCT/SERVICE COST PER UNIT

The cost of the product is was based on the cost of the raw materials, building, facilities,

equipment, tools, supplies, labor, bill of utility per month. The cost of the product is Php. 35.00.

The cost of the products includes the summation of all materials per pack and prices of its

competitors.
 SECTION IV. ORGANIZATIONAL ASPECT

1. LEGAL FORM OF BUSINESS

The legal form of the business enterprise that is being established is the partnership type
since the owners are friends since high school, they decided to established an enterprise and
make it into a business.

2. ORGANIZATIONAL STRUCTURE

GENERAL MANAGER
(JEFFREY V. TUCPI)

ASSISTANT MANAGER
(LEA JHANE G. BULIL-LIT)

FINANCIAL PRODUCTION
MANAGER MANAGER
(YMA JENINA G. (FRANK DENNIEL C.
GALACGAC) COLLADO)

ACCOUNT ANALYST
(JAMIE CHRISTINE CATABAY)

FINANCIAL CONSULTANT
(MARK DAVE MARTINEZ)

SUPERVISOR
(ARIEL Y. TAYTING)
 3. OFFICERS, QUALIFICATION AND DESIGNATION

The enterprise has set a standard requirement for hiring their laborers and staff in the
operation of the business. They assured that every laborer that they will be hiring qualifies the set
standards.

The workers and laborers must be in lined with the production and processing works.
They must be at least 18 years of age and at least a high school graduate. They should have good
moral character and with pleasing personality. The workers and laborers should have complete
application of documents like resume, barangay clearance and certificate of good moral
character. They should pass the interview that will be given to them by the enterprise for their
final evaluation.

4. PERSONNEL COMPLEMENT

The enterprise will coped up with possible arising issues and concerns about the product

or about the processing. With this, the enterprise will make it as a challenge and motivation in

improving the product for consumers/customers satisfactions.

5. AVAILABILITY OF CONSULTANTS/REQUIRED EXPERTISE

Consultants will serve as the production expert and marketing expert of the enterprise.
They will be hired for the improvement of the product and marketing strategies of the enterprise.
Certified Public Accountants must be hired also for evaluating the expenses and auditing of the
business annually.
 SECTION V. FINANCIAL ASPECT

1. BREAKDOWN AND SOURCESOF BUDGETARYREQUIREMENTS/FINANCING

Item Total Cost
Purchased raw materials 1,064,000

Building and Land 1,900,000

Fixtures 36,000

Equipment 338,500

Merchandize and Supplies 782,700

Tools 449,450

Labor/Utility 959,360

Total 5,530,010.00

2. CASH FLOW STATEMENT

2.1 Income Statement

2.2 Balance Sheet
 Figure 1:
PRIMARY PACKAGING OF THE PRODUCT
Figure 2: LOGO OF THE ENTERPRISE