Chapter I

Introduction

One of the most famous Filipino made recipe is the banana ketchup. Banana

ketchup is made from mashed banana, sugar, vinegar, and other spices. However,

there are some manufacturers That use banana powder instead of sliced banana.

Naturally it's color is brownish so most producer dye it into red to resemble Banana

ketchup. Banana ketchup is basically sweeter than Banana ketchup.

Obviously, most of the Filipinos use banana ketchup in about any dish. It is used to

add flavor to a different variety of food like afritada, adobo, menudo, pizza, fried food,

grilled foods, sweet and sour dishes.

Taking into consideration the availability of banana's supply in the region, banana

ketsup. Production could be an encouraging venture. given also the great demand for

banana ketchup in the local market, this project would generate a positive gain for the

entrepreneurs and investors who are willing to indulge into undertaking.

The project will produce banana ketchup of which main production of Raw

materials are widely available from within the region. Due to increasing demand for

banana ketchup in the Filipino market, the project is deemed to be a great value.

The banana ketchup produced from this project will be distributed in local market.

The project is advantageous in Batangas City because of the availability of the raw

materials from within.

Objective of the design

 To determine the feasibility of the product in the market.

 To determine if the product would be profitable.

 To supply a banana ketchup for the people of Batangas City.

Importance of the design

The design of banana ketchup production is to benefit the following:

Batangas City Consumers

The consumer will have a good and profitable banana ketchup for their everyday use.

Mechanical Engineering Student

The students will be able to know how the banana ketchup operating in a certain area

or community. This study can serve as their guide if they were to work in a project which is

relevant to the study.

Mechanical Engineering Department

The project will serve as another contribution to the achievement of the mechanical

engineering department in school. This can also be used for guidelines or reference if they are

working on a project related to this study.

Future Researcher

The design of the Banana ketchup production will help the researcher enhance their full

abilities and potentials as future engineers.

Definition of Terms

These are the operational terms which are necessary in the proposed study.

1. Condiment- (origin—Latin condimentum, from condire ‘to pickle’) A sauce, relish, spice, etc.

used to season food. It gives flavor to a variety of dishes.

2. Assorted- (origin—Old French assorter, from sorte ‘sort, kind’) It is an adjective for a product

produced from various sorts of materials mixed together.

3. Ketchup- (origin—perhaps from a Chinese word meaning ‘Banana juice) In US it is called as

catsup. It is a sauce made from Bananaes, and sometimes banana. It has a nutrient that is good

for the heart.

4. Seasoning- It can be salt, herbs, or spices added to food to enhance the flavor.

5. Inputs- It is the raw materials bought by an individual or an organization from a supplier to be

used according to its purpose.

6. Process- It is the procedure of developing an input into a finish product.

7. Output- It is the finished good produced out of the inputs.

8. Mixing- It is the process of combining two or more variables into one element.

8. Hygiene- (origin—from Greek hugieinē tekhnē ‘art of health’, from hugiēs ‘healthy’) It is a

conditions or practices that help to maintain good health, prevent disease, and achieve

cleanliness in the area.

9. Packaging- It is the process of arranging or tying into a package to protect the output from

risk.
10. Marketing- It is a strategy of promoting a useful idea, either tangible or non-tangible product,

to the society.

11. Essential- things that is absolutely necessary.

 Chapter II

Related Literature

Banana paste is a thick paste made from ripened Banana with skin and seeds removed.

Banana (Lycopersicum esculentum) is a commercially important vegetable throughout the world

both for the fresh fruit market and the processed food industries (Atherton and Rudich, 1986).

Apart from its characteristic flavor and aroma, it is also a good source of vitamin C and

significant sources of vitamin A and B (Robinson, 1976). It has about 20-25mg ascorbic acid per

100g (Dike and Atchey, 1986). The mineral content of Banana is high and varies from 0.3 to

0.6% (Gould, 1983). Bananamay be consumed fresh or processed to canned whole peeled

Bananaes. It may also be processed to produce juice, concentrated Banana juice, puree or

paste.

In Banana processing operations, Bananaare first crushed and filtered to remove the

seeds, skin and mucilage. The process results in the production of two products, Banana juice

and waste. The waste mainly consisting of skin and seeds is called Banana pulp or pomace.

The main processing steps in the production of a Banana paste include washing, sorting,

trimming, breaking, juice extraction, concentration, pasteurization, filling and cooking. After

washing and sorting, Bananaare chopped and subjected to cold break or hot break. During juice

extraction, the heated Banana pulp is passed through two extractors. The type of extractors

(paddle or screw) and screen size of extractors affect the quality of the final product in particular

its texture and consistency (Hayes et al., 1998).

Banana paste is strained Bananaconcentrated by evaporation with or without the

addition of basil leaf, and contains not less than 24% salt free Banana solids (Luh and Kean.,

1998). The characteristics quality factor of Banana paste depends on the quality of starting raw
materials (variety and ripening stages) processing conditions (time, temperature and pressure),

storage time and conditions (Farahnaky and Hill., 2007).

Banana paste contains both water soluble materials and insoluble components. The

consistency of a Banana paste is mainly controlled by the amount of pectin, total soluble solids,

and size distributions of insoluble constitute (Luh and Kean, 1998)

 Chapter III

Design Process

1. Product Description

1.1. Description of the Product

Banana ketchup is a mixture of Banana ketchup and liquid seasoning packed in one as

a mixed condiment. It will be packed in plastic bottles for easy convenience as it lighter than

glass bottles and is definitely cheaper. The color of the product is darker than the regular

ketchup, while the texture is similar to it. The product’s shelf life is three years.

1.2. Uses of the Product

The use of the product is to compliment different kinds of food such as adobo, afritada,

menudo, morcon, pizza, fried foods, grilled foods, sweet and sour dishes, and other variety of

dishes.

2. Market Study

Demand

Demand for the Past Years

The consumption for condiments for the past years is shown below:

Demand for the past seven years

Year (A) (B) (C) (D) (E) (F) = (E) /

 1,000,000

= (B) x (C) Demand

= (D) x (365) of
household per
Number Number Demand Demand of year in metric
of of Demand of household tons
populati househo per day household per year in
on ld in grams s per day grams

2012 472,780 97,962 16.1 1,577,188 575,673,693 576

2013 477,791 99,000 16.1 1,593,900 581,773,500 582

2014 482,856 100,050 16.1 1,610,805 587,943,825 588

2015 487,974 101,110 16.1 1,627,871 594,172,915 594

2016 493,147 102,182 16.1 1,645,130 600,472,523 600

2017 498,374 103,265 16.1 1,662,567 606,836,773 607

2018 503,657 104,360 16.1 1,680,196 613,271,540 613

Note: Demand per day in grams of condiments is based on the “per daily capita

food basket as found in www.fnri.dost.gov.ph (Appendix L).

Major Consumers of the Product

The major consumers of the products are:

Residence of Batangas City.

Aging from 15-64 years old either male or female.

Note: product will be sold through convenience stores, sari-sari stores, small scale groceries,

small eateries, fast food chains and restaurants.

Projected Demand
Projected demand

Year

(D) (E)
(F) = (E) /

(A) (B) = (B) x (C) = (D) x (365) 1,000,000

(C)

Number Number Demand Demand of Demand of

Demand
of of of household household per
per day
populati househo household per year in year in metric
in grams
on ld s per day grams tons

2016 508,996 105,466 16.1 1,698,003 619,770,949 620

2017 514,391 106,584 16.1 1,716,002 626,340,876 626

2018 519,844 107,714 16.1 1,734,195 632,981,321 633

The projected demand for the product for the next three (3) years starting 2016 is based

on the demand for the same during the last six (6) years as shown in the table preceding this.

Supply

Supply for the Past Years

 Year (A) (B) (C) (D)

Condiment Annual = (A) x (B) = (A) x (47%)

supplies in growth Increased Condiment

the quantity of supplies in
Philippines supplies NCR

2012 9,510 10% 951 4,470

2013 10,461 10% 1,046 4,917

2014 11,507 10% 1,151 5,408

2015 12,658 10% 1,266 5,949

2016 13,924 10% 1,392 6,544

2017 15,316 10% 1,532 7,198

2018 16,848 10% 1,685 7,918

Supply for the past seven years (in metric tons)

Note: Condiments supplies for year 2000 is shown in www.bps.dti.gov.ph; 47% of

producers of condiments are in the National Capital Region as stated in
www.intracen.org; data for the years 2000-2009 derived based on a 10% incremental per
year as it was stated there is a 5% increase in domestic and 5% increase in import,
respectively.

Projected Supply

Projected supply (in metric tons)

 Year (A) (B) (C) (D) (E) = (D) x

(4.76%)
Condiment Annual = (A) x (B) = (A) x (47%)

supplies in growth Condiment

Increased Condiment
the supplies in
quantity of supplies in
Philippines Batangas
supplies NCR

2016 18,532 10% 1,853 8,710 415

2017 20,386 10% 2,039 9,581 456

2018 22,424 — — 10,539 502

Note: Figures derived from table showing supplies in the past years; Batangas

population is 4.76% of total NCR population

Demand and Supply Analysis

Year Number of Target Projected Projected Demand-

population market demand supply supply gap

2016 508,996 200,221 620 415 205

2017 514,391 202,343 626 456 170

2018 519,844 204,488 633 502 131

Projected Sales

Year DAILY PRODUCTION (D) (E) (F)

(A) (B) (C) = (A) +

= (C) x (26) = (D) x (12) = (E) /
(B)
 355g 1kg Total Monthly Annual 1,000,000

bottle bottle
Annual

2016 17,750g 4,000g 21,750g 565,500g 6,786,000g 6.79metric tons

2017 17,750g 4,000g 21,750g 565,500g 6,786,000g 6.79metric tons

2018 35,500g 8,000g 43,500g 1,131,000g 13,572,000g 13.57metric tons

Packaging

The proposed product will be packed in plastic bottles with volume capacity of 350ml and 1

liter. The bottles shall necessarily be sealed. The label will be printed in a sticker paper by

the proponents to reduce the cost of the product.

Pricing

The price of the seasoned ketchup shall be based on raw materials and other related

expenses inclusive of mark-up. The 355g and 1kg package will initially be priced at thirty-

five pesos (Php 35.00) and eighty-five pesos (Php 85.00), respectively. (See Appendix A)

Place of Distribution

The place of distribution is at Batangas City. It will be distributed to convenience stores,

eateries, fast food chains, restaurants, sari-sari stores, and small scale groceries where the

target market is situated. End-users or consumers shall purchase the products from these retail

outlets.
Brand

The brand name shall be G.G. banana Ketchup’ as it is a combination of banana

ketchup and liquid seasoning.

Category/Quality and Style

The proposed product is a mixture of liquid seasoning and banana ketchup. It will weigh 355g

with a volume of 350 ml plastic bottle, and 1kg with a volume of 1 liter. Raw materials needed to

produce the product are detailed in Appendix F.

3. Plant

1. Plant/Business Location

The location of the plant is at the Diversion Road , having a lot size of thirty

thousand square meter, near the hospital.

2. Building and Improvements

The improvements in the plant will be the two brand new exhaust fans. One will

be placed in the kitchen and the other one will be placed in the office/stock room which

also they store some of the raw materials.

 3. Plant Capacity

Based on the market study and assuming the lowest share of the unsatisfied

demand projection, the envisaged plant will have a capacity of producing 600 tons of

banana ketchup and sauce per annum, out of which 150 tons will be banana ketchup

and 450 tons banana sauce. A capacity of 2 tones per day is considered on the basis of

single shift of 8 hours per day and 300 working days per annum. This capacity, upon

requirement, can be increased by increasing the number of shifts per day.

4. Manufacturing Process

A. Description of the Process

The processes in producing the proposed product are the following:

A. Preparing of ingredients and equipments (2 mins.)

Equipments and ingredients are brought out to the kitchen to prepare for the production.

The ingredients for making the Banana ketchup and liquid seasoning consist of banana,

vinegar, sugar, cornstarch, water, salt, onion powder, garlic powder, black pepper ground, all

spice powder, sodium benzoate, potassium sorbate, catsup red #600, chocolate brown,

strawberry red, union sauce, caramel premium, soya bean, vetsin, innosonate monosodium

phosphate, rock salt, and citric acid anhydrous. The equipments needed to prepare the banana

ketchup are a large cauldron (with the capacity of 4400ml), stock pot (with the capacity of

5000ml), sauce pot, stove, blender, whisk, ladle, kitchen scale, measuring cup, measuring
spoon, funnel, chopping board, stainless steel paring and kitchen knife, strainer, hand mixer,

heat gun, bowl and kettle.

B. Boiling of water in the kettle (3 mins.)

Put water inside the kettle, and bring it to a boil

C. Pouring of hot water into the cauldron and sauce pot (3 mins.)

Transfer the hot water from the kettle to the cauldron and sauce pot to sanitize the said

equipments before using it.

D. Processing of ingredients for banana ketchup and liquid seasoning (1 hr. & 52 mins.)

I. Banana ketchup (1 hr. & 34 mins.)

1. Preparing of banana (41 mins.)

a) Boiling of water in the stock pot (3 mins.)

Put water into the stock pot, and bring it to a boil.

b) Washing of banana (3 mins.)

Place the banana in a bowl of water, and rinse it one by one in the

water thoroughly.

c) Preparing the banana or cutting (4 mins.)

Place the banana on the chopping board, and use the kitchen

knife to carve an X mark on the middle of the top part of the

 Banana for easy peeling of the banana’s skin later on.

d) Boiling of Banana (10 mins.)

Put the banana in the stock pot until it softens.

e) Place the banana in cold water (5 mins.)

Place the banana in a bowl of cold water with the use of a

strainer and a potholder.

f) Peeling the banana (5 mins.)

Peel the skin of the Banana using a paring knife.

g) Cut the banana in half and scoop the seeds out (5 mins.)

h) Blending of Banana(6 mins.)

Blend the Banana using the blender until it liquefies.

2. Weighing of ingredients (8 mins.)

This part of the procedure focuses on the specified volume and weight of the

ingredients to be mixed in the cauldron using the kitchen scale, measuring cup and

measuring spoon. This will indicate the volume of outputs to be made.

3. Mixing of ingredients in the cauldron (5 mins.)

Place the following ingredients (in order: water, sugar, vinegar, salt, onion

powder, garlic powder, black pepper ground, all spice powder, blended Banana, corn

starch, and potassium sorbate) in the cauldron, and mix it using the hand mixer.
4. Cooking the mixed ingredients (30 mins.)

Cook the ingredients while mixing it using a whisk until it is sufficient in

thickness.

5. Add the food coloring and preservative (3 mins.)

Put the food coloring that is the following: catsup red #600, chocolate brown

and strawberry red in the mixed ingredients. Then, add the sodium benzoate to the

mixed ingredients as a preservative.

6. Cooling (7mins.)

After mixing all the materials for the Banana ketchup, turn off the stove, and

continue stirring it.

II. Liquid seasoning (18 mins.)

1. Weighing of ingredients (8 mins.)

This part of the procedure focuses on the specified volume and weight of the

ingredients to be mixed in the stock pot using the kitchen scale, measuring cup and

measuring spoon. This will indicate the volume of outputs to be made.

2. Mixing of ingredients in the stock pot (10 mins.)

Place the following ingredients (in order: union sauce, caramel premium, soya

bean, water, sugar, rock salt, vetsin, innosonate monosodium phosphate, sodium

benzoate, and citric acid anhydrous) in the stock pot, and mix it using the hand mixer.

E. Putting both ingredients in the sauce pot (5 mins.)

 After the process of making a Banana ketchup and liquid seasoning, the ingredients are

now poured in a sauce pot. Potholder will be used to minimize the heat in the hand of the

cooked ingredient of Banana ketchup.

F. Mixing both ingredients (10 mins.)

The ingredients are now mixed by slanting the saucepot slightly, and by using of hand

mixer to merge it well.

G. Filling into plastic bottles (20 mins.)

The seasoned Banana ketchup will be transferred into the plastic bottles by using a ladle

and funnel. The ladle will be used for scooping the mixed condiment into the saucepot through

the funnel to the bottle.

H. Labeling and sealing of bottles (30 mins.)

The product label printed in the sticker paper and the cap seal will be attached to the

bottles. The heat gun will be used in melting the seal to the cap of the bottle.

I. Putting in the storage room (8 mins.)

The final product will be placed inside a plastic bag in the storage room.

J. Cleaning of the equipments and production area (30 mins.)

All the equipments will be cleaned with the use of a dishwashing liquid and scouring pad

with sponge. The kitchen will also be cleaned using a walis tambo, dust pan, mop, and

disinfectant spray to guaranty sanitation in the production area.

 Alternative Process Considered

In case of substandard conditions during the production time like blackout of electricity,

the whisk will be used in stirring of the ingredients in the cauldron, stock pot and sauce pot. The

advantage of this alternative process is that the cost of electricity will be reduced. The

disadvantage of it is that the time of production

Production/Operation Schedule
 The business operation starts from 8:00am and it ends at 5:00pm. Work time will be for

eight (8) hours per day for twenty six (26) days a month from Monday till Saturday as allowed in

the labor code. The proponents planned that there would be two operations in a day, one in the

morning and the other one in the afternoon. Production will be in quantity of twenty five (25)

bottles of 350ml capacity and two (2) bottles of 1liter capacity in the morning from 8:00 am to

12:00 noon; and in the afternoon from 1:00 pm to 5 pm, production will be of the same quantity.

The reason for the selection of the said production schedule is to ensure good quality. (See

Appendix B)

Machinery and Equipment

The Overnight Company would purchase the following equipments: Stove, sauce pot,

cauldron, stock pot, stainless steel kitchen knife, chopping board, strainer, kitchen scale,

measuring cup, measuring spoon, ladle, whisk, funnel, refrigerator, blender, whistling kettle,

hand mixer, heat gun, and computer with a printer.

6. Material and inputs

Raw Materials and Supplies

The raw materials needed to produce seasoned Banana ketchup are the following:

Banana, vinegar, sugar, corn starch, mineral water, iodized salt, onion powder, garlic powder,

black pepper ground, all spice powder, sodium benzoate, potassium sorbate, catsup red #600,

chocolate brown, strawberry red, union sauce, caramel premium, soya beans, vetsin,

innosonate monosodium phosphate, rock salt, and citric acid anhydrous. (See Appendix F)

The office and sanitary supplies necessary for the business operation are the following

paper trimmer, bond paper (long and short), official receipt, ink (black and white), surgical

gloves, hairnet, mask, apron, trash can, walis tambo, dust pan, scouring pad with sponge,
alcohol, dishwashing liquid, disinfectant spray, tissue roll, mop stick, cotton map, potholder, and

plastic bag.

Utilities

The utilities needed in the daily operation of the proposed business are the following:

electricity, water, and telephone.

Waste Disposal

The waste of the proposed business shall be collected by the garbage collector of the

municipal city of Batangas on Saturdays. The owner purchased a trash can to dispose off the

waste from the production. The skin of the banana will be used as a fertilizer for the plants in the

garden

Direct Labor Requirements

The employee must comply with the following conditions: 21-40 years old, male or

female, preferably a resident of Batangas City and has at least 2 years work experience and

willing to be trained, enjoys working, physically healthy, and of good moral character.

Pre-operating Timetable

The pre-operating activities of the project are projected at 34 weeks from the first

activity to the start of the operation. The essential activities are making a feasibility study,

leasehold improvements, acquiring permits and licenses, searching and acquiring a contract to

suppliers, direct materials, and potential stores.

Activity Description Immediate Time

Predecessors Duration

(weeks)
 A Create a business plan None 14

B Secure Permits & Licenses A 3

C Search for suppliers & potential stores A 4

D Plant improvement B 1

E Purchase & installation of equipments, D 4

sanitation & office supplies

F Hire and train of employee E 2

G Secure a contract with suppliers of direct C 3

materials and potential stores

H Purchase of direct materials from F, G 2

suppliers

I Start of operation I 1

Activity Path Calculation

Activity Path Breakdown of time Total (weeks)

A,B,C,D,E,F,G,H,I 14,3,4,1,4,2,3,2,1 34

The critical path A, B, D, E, F, H, I include all of the required activities that should be

done before the start of operation. Licenses and permits, training of employee, installations of
machineries and equipments, improving the construction of the plant are required to the

operations and it’s to be acquired before the start of the operation.

Chapter IV

Discussion, Computations

Item Description Power (kw) Capacity Dimension(mm) Cost (Php)

no.

1 Bubble Cleaning 2.8 2t/h 2500 x 1100 x 1800 325,000

2 Sorting Machine 0.75 2t/h 3500 x 800 x 900 1,010,476

3 Elevator 0.75 2t/h

4 Crusher Pump 3 0.5-2m 3/h 150,000

5 Column Tubular 2t/h 1405 x 615 x 1250 131,361.88

6 Beater Machine 4 1-1.5t/h 1450 x 770 x 1530 808,380.80

7 Temporary 1000L 175,000

8 Beverage Pump 0.75 350 x 265 x 320 450,000

9 Colloid Mil 11 1-2t/h 990 x 650 x 1340 50,523.80

10 Storage Tank 1000L 1,591.50

11 Mixing Tank 0.75 0.1-0.2t/h 500L 757,857.00

12 Sugar Process 4.75 100L 1200 x 1200 x 2100 75,735.18

13 Homogenizer 11 1000L/h 1300 x 820 x 1200 200,000

14 Vacuum 2.06 100L/h 800 x 600 x 2000 73,529

15 Column tubular 1t/h 1220 x 440 x 1080 131,361.88

16 Aseptic Product ∅ 38 mm 12,000

17 Control Cabinet Diameter: ∅ 50 624,000

TOTAL 4,976,817

Equipment/Unit Qty Capacity Overall Working Working Power Rate

(pc.) (KW/unit) Capacity hr/year hr/year KWh/yr
(KW)
Light(factory) 25 0.10 2.50 12X365 4380 10,950

Light (perimeter) 8 0.10 4.0 4380 4380 17,520

Light(administrat 6 0.30 1.80 (8X240) 1920 3,456

ive)

Production 11 41.6 41.6 (8X240) 1920 138,240

equipment

Air-conditions 23.704 (8X240) 1920 4551.17

Machine Tools 68.860 (8X8) 64 132,211.2

Pumps 1 5.5 5.5 1/5(30X8) 240 24,240

Computer 7 0.7 3.5 (8X240) 1920 6720

Xerox Machine 1 0.8 0.8 (8X240) 1920 1536

TOTAL 182.664 339,424

 Sr. Description Req. Monthly Annual
No. No. Salary Salary
A. Administration
1 Manager 1 30,000 360,000
2 Administrator 1 17,000 204,000
3 Accountant 1 17,000 204,000
4 Secretary 1 15,000 180,000
5 Salesperson 1 13,000 156,000
6 General service 1 12,000 144,000
7 PME 1 50,000 600,000
Sub-Total 7 1,884,000
B. Production
1 Operators 17 15,000 255,000

2 Unskilled workers 20 12,000 240,000

3 Technician 5 15,500 930,000
4 Electrician 2 14,000 336,000

Sub-Total 44 1,761,000
Total 3,645,000
13 month pay 1,200,000
Grand Total 51 4,845,000
Gun Chart

Activities Week Week Week Week Week Week Week

32-42
1-5 6- 10 7-15 16–20 21-31 43-52

Plan Drawing

Permits

Procurement

Site development

Civil works

Mechanicals

Electrical

Pre – commissioning

Commissioning

Start - up
 RAW MATERIALS Monthly Annual
1 Banana 12,240.00 2,937,600

2 Vinegar 3,894.00 934,560

3 Refines sugar 18,336.00 4,400,640

4 Cornstarch 4,030.00 967,200

5 Iodized salt 1,872.00 449,280

6 Onion powder 744.00 178,560

7 Garlic pwder 496.00 119,040

8 Black pepper ground 568.00 13,320

9 All spice powder 624.00 149,760

1 Sodium benzoate 174,720.00 419,322,800

0

1 Potassium sorbate 140,000.00 33,600,000.00

1

1 Catsup red #600 1,200.00 576,000.00

2

1 Chocolate brown 648.00 155,520

3

1 Strawberry red 432.00 103,680

4

1 Union sauce 1,000.00 240,000

5

1 Caramel premium 5,080.00 1,219,200

6

1 Soya beans 840.00 201,600

7

1 Vetsin 2,050.00 492,000

8

1 I.M.P 280.00 67,200

9

2 Rocksalt 810.00 194,400.00

 0

2 Citric acid anhydrous 3,328.00 798,720.00

1

TOTAL 906,392 467,121,080

Equipment No. of Price/ unit (PHP) Total cost (PHP)

units

Water Tank (500 L) For 1 4500.00 4,500.00

Distilled Water
Water Tank (28000 L) For 1 25000.00 25000.00
Utilities
Distilled Water Machine 1 20400.00 20,400.00
Water Pump 1 25,261.90 25,261.90
Airconditioning For 4 70,400 281,600.00
Canteen And Locker Room
Airconditioning For Office 1 25,000 25,000.00
Led 30 1,800 36,000.00
Ventilator 20 3,230 64,600.00
Parameters 10 585 5,850.00

Delivery Truck 4 1,615,000 6,460,000.00

Forklift 2 350,000 700,000.00
Grinder 2 1,300 2,600.00
Drill 2 2,149 4,298.00
Electric Circular Saw 1 1,699 1,699.00
Welding Machine 1 5,699 5,699.00
Generator 1 1,064,688.30 1,064,688.30
Computer 7 10,499 104,990.00
Xerox Machine 1 122,500.00 122,500.00
Total 8,954,686.20

ELECTRICITY

Equipment/Un Qty Capacity Overall Working Working Power

it (pc.) (KW/unit) Capacity hr/year hr/year Rate
(KW) KWh/yr

Light(factory) 30 0.10 3 12X365 4380 13,140

Light 10 0.4 4 4380 4380 17,520
(perimeter)
Light(administ 10 0.30 3 (8X240) 1920 5,760
rative)
Production 11 41.6 (8X240) 1920 79,872
equipment
Air-conditions 23.704 (8X240) 1920 4551.17
Machine Tools 68.860 (8X8) 64 132,211.2
Pumps 1 5.5 5.5 1/5(30X8) 240 24,240

Computer 7 0.7 3.5 (8X240) 1920 6720

Xerox 1 0.8 0.8 (8X240) 1920 1536

Machine

TOTAL 152.264 285,550

 KW PHP
Total Power Rate per Year :285,550 ×15 =Php 4,283,250
year KW

Overall Capacity of All Equipment :152.264 Kwh

Generator Capacity :500 Kw

COMMUNICATION

Php5000
Internet+Telephones= ×12 months
month

Cost per Year=Php 60,000

CIVIL WORKS

PLACE SQ METER

Admin 250
Warehouse/Factory 1000
Shop Warehouse 600
Power House 50

Total Sq Meter 1900

2 1 ft 2 2
1200 m × 2
=20,424.62 ft
( 0.305 m )

72.42 $ Php 50
20,424.62 ft 2 × × =Php73,957,538.2
ft 2 $

MUNICIPALITY BUSINESS PERMIT

PHP 15,000
ENVIRONMENTAL COMPLIANCE CERTIFICATEPROCESSING FEE:
1. PEIS – 15,000.00
2. EIS – 10,000.00
3. PEPRMP – 10,000.00
4. EPRMP – 10,000.00
5. IEE Checklist – 5,000.00
6. Documentary Stamp – 15.00
PHP 50,015.00
Securities and Exchange Commission

Approximate Registration Fee: Php 471,492.69

Taxes

3,470 bottles per day

355g price is 35 pesos

3,470 x 240 x 35 = 29,148,000

2,082 bottles per day

1kg is 85 pesos

2,082 x 240 x 85 = 42,472,000

29,148,000 + 2,472,000 = 71,620,000

Tax=GROSS INCOME × INCOME TAX (3 %)

Gross income = PHP 71,620,000

Taxes=71,620,000 ×3 %=Php 2,148,600

Expected Revenue=Grossincome−Tax

¿ 71,620,000−2,148,600

Expected Revenue=Php73,768,600
INITIAL COST

Land 150,000,000

Equipment 8,954,686.20
Business Permit 26,020.00

ECC 50,015.00
SEC 471,492.69
Civil Works 73,957,538.2

Machines 4,976,817

TOTAL 233,459,752

ANNUAL COST

Raw Material 467,121,080.00

Labor 4,845,000.00
Utilities (power req.) 5,091,360.00
Taxes 2,148,600.00
Communication 60,000.00
Bottles 66.163.25
TOTAL 479,266,040.00
 expected revenue
RORI = × 100
Initial Cost + Annual Cost

74,205,000
¿ ×100
233,459,752+ 479,266,040

Rate of Return of Investment =10.41%

Initial Cost + Annual Cost

Payback=
Expected Revenue

233,459,752+ 479,266,040
¿
74,205,000

Payback=9,60482167 ≈ 9.60 years

 Chapter V

CONCLUSION ANS RECOMMENDATION

CONCLUSION

The need to establish a Banana ketchup plant in Batangas City cannot be overemphasized. The

plant promises to eliminate glut experienced by banana producers in periods of increased

supply. It also possesses the prospect of boosting the gross domestic products of the country.

The design of the plant being carried out indicates that it is technically feasible to construct the

plant because the equipment is available, the process route is feasible, and the process

conditions attainable. The economic analysis shows that the plant is highly profitable. With a

high rate of return and short pay back period.

RECOMMENDATION

From the results obtained in this plant design exercise, it is recommended that investment

should be made to set up this plant. More investment should be put into cultivation of raw

banana which will help to reduce the price of banana raw material. Banana plant should not be

constructed for only banana ketchup but a two in one plant (Banana paste and Banana Powder)

should be designed and constructed – this will encourage the utilization of waste which will

increase the annual income for the plant that make it possible for the plant to double its profit

margin. A technology should be developed for the plant which will re-inject heat produced in the

process to serve utility purposes thereby lowering the total production cost of the plant.