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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

ACKNOWLEDGEMENT

The group would like to thank the following for their contributions in the making of this company study.

To SACDEC (Sibunag Ati Community Development Cooperative) for allowing the group to study their company and to learn more about actual business operations and processes.

To Mrs. Gemma Chavez Valenzuela for relentlessly giving us the necessary and relevant information that she unselfishly shared to the researchers.

To Mr. Manuel Ocampo for giving us an opportunity to discover and experience the actual world of business through his enormous effort for requiring the group for a company study.

To the Almighty and Loving Father who bestowed upon the researchers the knowledge and intelligence to make a reliable and informative company study.

And to all the group members, Jiahra Mae D. Maravillas, Jhennilyn J. Arreglado, Arshie David, Fredrick Valle and Marc Gretel R. Madanguit for their cooperation and effectiveness to finish the paper on time.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Introduction
Background Production/operations management is applicable to firms engaged in manufacturing or production and even service activities. Operations management involves product and service design, process selection, selection and management of technology, design of work systems, location planning, facilities planning, and quality improvement of the organizations products and services. In a manufacturing firm, the creation of goods involves transforming or converting inputs into outputs. Inputs such as capital, labor and information are used to create goods or services using one or more transformation processes. Best strategies are often required to continuously satisfy old customers and attract new ones. In the operation of handicrafts, these activities are very much applied. The customers of which are the retailers of hand woven bags who sell these products for souvenirs and the like. The important employees are the members of the cooperative who do the weaving of these handmade bags. Like all other firms, the handicraft industry has three basic functional areas: finance, marketing and operations.

Sibunag Ati Community Development Cooperative (SACDEC) is a group composed of indigenous people of Ita community in Liningwan, Sibunag, Guimaras. It was formed through the full cooperation of the Ita in the area. It is a 2-year old cooperative that aimed not only to give livelihood to the Ita group in the community, but also to nurture their God-given skills, abilities and talents to gain wealth with their own hands.

The cooperative has started with 27 members, but has continually declined today to 16 members with only 6 members who are weaving when supplies are needed by their respective

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

partners. However, the marketing in-charge of the cooperative, Mrs. Gemma Valenzuela, is conducting regular trainings and workshops to increase the manpower of the cooperative and gain more income from the products they produce. The management group of the cooperative is composed of the chief executive officer in the name of Pastor Dennis Bautista with his associates, Mrs. Gemma Valenzuela (Marketing in-charge), Mrs. Marita Magbanua (Quality Control), Mrs. Norilyn Bautista (Bookkeeper), Mr. Ode Inagan (Audit Inventory), Lydia Arevalo (Treasurer) and Mrs. Jenelyn Chavez (Purchaser).

Hand-made crafts are undeniably durable products. Capitalizing on the raw materials used and the manual efforts of the members, the products are surely reliable and long lasting. These products are what tourists usually buy as souvenir items. In addition, most people also love and prefer the beauty of hand-made products rather than rubberized or synthetic materials not only because they are environmentfriendly, but because they are also fashionable.

SACDEC does not only want to gain income out of weaving. They also wanted to impart to the buyers and the rest of the people the value of patriotism and nationalism by buying products that are made locally to help strengthen our economy and help our fellow countrymen gain for their daily living.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Objectives of the Study The study intends to determine the manner of the daily operations of the Sibunag Ati Community Development Cooperative (SACDEC). Eventually, this paper also aims to formulate and recommend alternatives of action that could possibly help in the improvement of the enterprise. More specifically, the study aims to:

Describe and analyze the current status of the enterprise relating to the:

a. Organization and personnel b. Communications Flow c. Functions and responsibilities of personnel

Describe and examine the system of operations the business is

implementing:

a. In manufacturing their products b. In the plant location c. In the production process d. In managing raw materials and other supplies e. In selecting the machineries and equipments to be used f. In determining the production capacity and schedule

g. In disposing/segregating wastes

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

h. In determining production costs

improvement of its operations;

To employ managerial knowledge for the

To determine, assess and evaluate the

quality control methods it uses for their products; and To determine the efficiency of their

operations that could continuously satisfy customers and attract new ones.

Significance of the Study The study was conducted to help in the improvement of Sibunag Ati Community Development Cooperative. The results of this study will help the enterprise improve its current operations. Expectedly, it will widen the firms view of the business. Moreover, it is expected that the strategies the proponents will recommended can solve certain portion of their problems that will help the management team of the enterprise go further about the business and will have a better and unique approach to the customers.

Scope and Limitations of the Study The study was conducted at Liningwan, Sibunag, Guimaras on July to September 2009. It focused on the operations of the enterprise as a whole. The data gathered are all considered first-hand/primary sources since it was generated from an interaction with the major respondents of this study. Majority of the information came from Mrs. Gemma ChavezValenzuela, Head of Operations of SACDEC as well as the Marketing in-charge. Other sources

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

of information include the Taytay sa Kauswagan Inc. (TSKI) and the other members of the enterprise.

Methodology Research Design The study makes use of the descriptive-analytical technique especially the focus groups method. Such method is useful in attaining information that is difficult to obtain with other methods. This method is also used to set in-depth information and reactions to a relatively small number of topics or questions rather than to get answers to a large number of questions. Here, each group is relatively homogeneous with respect to background characteristics of the participants to encourage an in-depth point of view. The homogeneity helps assure that individuals will not be afraid about the issues at hand (OSullivan and Rassel, 1995). Description of the Study Area Guimaras is an island province of the Philippines located in the Western Visayas region. Among the smallest provinces, its capital is Jordan. The island is located in the Panay Gulf, between the islands of Panay and Negros. To the northwest is the province of Iloilo and to the southeast is Negros Occidental. The province is located on the islands of Guimaras and Inampulugan. It was a subprovince of Iloilo until it was made an independent province on May 22, 1992. Located southwest of Panay, Guimaras is separated physically from Iloilo by a narrow channel, which takes about fifteen minutes to cross by pumpboat from the Ortiz landing on Iloilo to Jordan. There are two other ways to get there, the Parola wharf in Iloilo to the municipality of Jordan.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

The Parola wharf is used exclusively whenever the water is rough. There is also a roll on roll off (RORO) ferry that travels around five times a day and is used by the Iloilo bicycle clubs on Sunday to travel to Guimaras. Geologists opine that the island formed one landmass with Panay in the past. Guimaras was formerly known as Himal-us. Guimaras is also famous for its beaches. Clear blue waters, white sand and marine life rivals that of Boracay. Commonly visited ones are at Roca Encantada, Alubihod and Puerto del Mar. The province is basically agricultural with palay, coconut, mango, vegetables, livestock, poultry and fishing as major products. Its major industries are tourism, fruit processing, coconut processing, fish farming, handicrafts making, mining, quarrying and lime production. Guimaras is well-known for its agricultural crops, particularly mangoes, where some 50,000 of these trees are planted. The Guimaras Island is famous for producing the sweetest mangoes in the world. Guimaras mangoes are reportedly served at the White House and Buckingham Palace. Guimaras' largest event of the year is The Manggahan Festival (the Mango Festival). The varieties of mangoes produced are also best for making dried mangoes, jam and other delicacies. Sibunag is one of the municipalities of the Guimaras Province. It is a 5th class municipality in the province of Guimaras, Philippines. According to the 2000 census, it has a population of 20,104 people in 3,843 households, and it has 14 barangays with in the municipality.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Sampling Design There is no specific number of sample populations that the proponents required. They look at the adequacy of the information that the members of the enterprise can supply. Data Collection The respondents of the study included the coop members of the Sibunag Ati Community Development Cooperative (SACDEC). The choice of the number and type of respondents was based on the respondents ability to provide adequate data and information of every company that is needed in the study and not necessarily in conformity to a particular sampling technique as the design of the study is basically descriptive. The primary data was obtained through an accumulated interaction with the members of the cooperative. Every time the proponents go to the place, interactions and unstructured interviews are done for data gathering. The secondary data that focused on some other details about Guimaras and Sibunag are taken from numerous publications as well as internet sources. Data Analysis and Interpretation The data generated from unstructured interviews and conversations were coded, categorized, and presented in appropriate tables accompanied by narrative explanations. Descriptive and statistical analysis of primary data was made with the aid of certain statistical techniques. Descriptive analysis of the data was done using frequency distribution and percentages.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Conceptual Framework Raw Materials Buri Nito Pandan Abaca Dye Water Thread Equipments and Manpower Sewing Machine Cutter Coop Members (Ati or Ita) Products Native Products

Input

Throughput

Output

Definition of Terms For the readers to fully understand the study that has been conducted here are some terms that may appear vague to them: 1. Raw Materials refer to things that are used to produce the final products of SACDEC. 2. Buri are long narrow stripped of palm. Additional accessory in the making of the final output. 3. Nito An additional accessory in the making of the final output. 4. Pandan Primarily use in the making of shoulder bags and other native materials. 5. Abaca one of the raw materials used to make the products; these plants yield fiber.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

6. Dye the solution or substance that is used to color the outer portion of the products. 7. Water were dye is soaked to produce the desired color and apply to the final products. 8. Equipments and Manpower is indicated by the sewing machine, dryer, cutter, and the members of the cooperative. 9. Sewing Machine the machine used for sewing the zippers and edges as well to apply designs to the products. 10. Cutter is a sharp materials used to cut the raw materials into strips. 11. Cooperative Members (Ati or Ita) black people of Sibunag, Guimaras composing the Sibunag Ati Community Development Cooperative. 12. Products the final material that results from weaving the materials.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Company Profile History SACDEC (Sibunag Ati Community Development Cooperative) is a group composed of indigenous people of Ita community in Liningwan, Sibunag Guimaras. It was formed through the full cooperation of the Ita in the area. The chief executive officer of the cooperative was Pastor Dennis Bautista with his associates, Mrs. Gemma Valenzuela (Marketing in-charge), Mrs. Marita Magbanua (Quality Control), Mrs. Norilyn Bautista (Bookkeeper), Mr. Ode Inagan (Audit Inventory), Lydia Arevalo (Treasurer) and Mrs. Jenelyn Chavez (Purchaser). The cooperative is located at Sibunag Public Market, Liningwan Maabay Sibunag Guiamaras.

SACDEC is known to generate income through their native products that were weaved and made into materials like bags, wallets and purses. It was fully assisted by TSKI (Taytay sa Kauswagan Incorporated), a micro financed community development institution. It started its operation with a capital of Php 7,500.00 in August 15, 2007 with 27 members. This capital was used to buy the raw materials like buri, pandan, nito and abaca that they need to make the final products. Materials were purchased from nearby town and to the wild of the said place where it was abundant except for abaca which was purchased in Janiuay, Iloilo.

For some time now, Trappist which is also located in Guimaras had been SACDECs business partner. Their finished products were delivered to this retail outlet where they are displayed for final costumers to purchase. They also engage in direct marketing wherein they accept direct orders from customers or through TSKI.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Currently, there are only 16 members left with only six master weavers who make the products. Since orders are currently increasing in number and they cant cope with the demand, they were training additional people to help them with the job. Together with TSKI, Trappist and other potential investors and customers, SACDEC is likely to reach the national market with their quality native products.

Mission To work towards an equal distribution resources and opportunity. Through a collective polling of resources so that everyones needs are meet. By using our God given power and ability to gain wealth, and working with our own hand that is good. That we may have something to give to those who are in need as faithful steward of the manifold grace to God.

Vision To see SACDEC members experience prosperity and physically healthy under Gods sovereignty.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Distinguishable Characteristics of SACDEC Weavers 1. Skilled Workers they are masters of their own selves, they are

well-rounded and knowledgeable in their special fields. 2. Determined they see to it that once they are committed to do

something, they find ways to achieve them. 3. 4. Talented showing exceptional natural ability to do something. Resourceful they are inventive people. They create products

through the use of materials that are available to them. With the use of this available resources, they make the materials that are demanded by their customers. 5. Innovative they are very creative people. Most of the times they

create new products and do not only follow what the market has to offer. They make products to be demanded by customers. 6. Industrious they are hard-working people and despite the many

obstacles that they are facing they tirelessly find ways to solve them. When there are product demands, they see to it that they finished them on the deadline. 7. Unique they are considered as part of the indigenous people in

the Philippines thus contributing to their unique and original Filipino characteristics that they have inherited from their ancestors. 8. Environmentalist they see to it that in everything that they do

they do not harm the environment. They believed that the environment is in one with them. They also acknowledge the idea that whatever they do it reciprocates with the environment.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

9.

Morally Upright they see to it that they do the right things

according to norms of people, of God and of the environment. 10. Law Abiding they are bounded by the legal principles of the

government and they see to it that they abide by the law.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Organizational Structure The type of ownership that is being followed by SACDEC (Sibunag Ati Community Development Cooperative) is a cooperative with 27 initial investors and a capital of Php 7,500.00. Below is the hierarchical position of the members of the organization.

Board of Directors

Figure 1. SACDECs organizational structure.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

This presents the hierarchical order of the Operations Department of SACDEC (Sibunag Ati Development Cooperative). Since the organization has not been fully established and some members of the cooperative are illiterate and unfortunately incapable of holding some important responsibilities in the organization, Mrs. Gemma Chavez Valenzuela, the Marketing in-charge also acts as the Operations Manager of the weaving/operations department. Other members also perform multitasking.

Figure 2. SACDECs organizational structure in the Operations Department.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Flow of Communication For Orders and Product Making Every time an order is placed, Mrs. Gemma Chavez Valenzuela will inform the cooperatives auditor Mr. Audie Enagan or Lydia Arevalo so that they can give appropriate amount needed to purchase the needed raw materials. Ms. Jenelyn Chavez, the purchaser will then buy the raw materials like buri, pandan, nito and abaca from their respective suppliers.

During the making of the products, Mrs. Marita Magbanua, the head for quality control operations checks the product to free it from defects at the same time assure that the quality of the product will not depreciate as it is transferred from the production site to the final customers.

After the sale of the product, the capital used to make the products was then returned to the cooperative that have the share of 70% from the revenue. This will be shared by the members of the organization. The remaining 30% revenue is then given to the people who weaved the ordered products. This is to ensure that their weavers are continuously motivated while the cooperative is earning.

Meeting and Gathering In most occasions, information regarding meetings and other special gatherings are placed outside the SACDECs headquarter near Sibunag Public Market. Since the area is frequently visited by SACDECs members, there are fewer chances that they will not know about the meeting. Nevertheless, it is the initiative of the members of the organization to inform their constituents in some cases.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

During the meeting, the members of the organization are updated or informed of the current situation of the organization. This also serves as their social and interactive gathering to maintain the strong foundation of the organization.

Meeting of the Board of Directors Before a meeting is called by the cooperative members, a board of Director meeting is held to address some important issues and to review the situation of the organization. It is during this time wherein critical issues and problems regarding the organization are discussed and if not fully solved will be partially given solution to remedy and minimize existing problems.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Functions and Responsibilities 1. Pastor Dennis Bautista the Chief Executive Officer/ Manager of SACDEC. He is the final decision-maker in the cooperative. He sees to it that the organization is functioning properly and members are properly taken care of. He oversees possible problems and remedies them. He calls and initiates meeting. Aside from his managerial responsibilities, he also acts as agent who sells and promotes products to prospective buyer or costumers. 2. Gemma Chavez Valenzuela the Marketing In-Charge of the cooperative. Her job specializes in the marketing of their products. She sees to it that their products will be available to their costumers on the time needed. She is the person to be contacted in cases of orders made by direct costumer, the TSKI or the Trappist. 3. Marita Magbanua the Quality Control Officer of SACDEC. She sees to it that during production, the materials used are of good quality so that the final products will not be affected. Before the product is turned-over to the final costumer or retailer, she checks on the products condition and sees to it that it is properly handled during delivery to avoid defects. 4. Jonilyn Chavez the cooperatives Bookkeeper. She keeps all of the companys records and transactions. She keeps documentations and receipts and in case of problems and other finance-related issues and concerns, she reports to the auditor. 5. Audie Inagan and Lydia Arevalo SACDECs Audit Inventory Officers. They oversee the companys financial stability. They are responsible for keeping the money of the cooperative. They report to the members everything about the financial standing of the organization and they see to it that profits are properly distributed among the

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

shareholders of the organization. In cases of new products, they are the persons responsible in making appropriation and estimates as to the pricing of the new product. They make sure that money is available in buying raw materials that are needed. 6. Jenelyn Chavez the coops purchaser. She makes necessary transactions to the supplier of their raw materials. She buys the product and negotiates to their supplier in cases of problems and other concerns.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Current Concern of Management Financial The Sibunag Ati Community Development Cooperative for two years of their existence has been experiencing problems especially in their financial aspect. They are having a hard time finding enough capital to start a larger production. The Php 7,500.00 starting capital is not enough to pay for their monthly dues and the legalization process for the registration of their business to the Department of Trade and Industry. There are also other fees that they have incurred during their first year of operation. Human Resource There were 27 members in the start of the cooperative. But as years passed, this number has continuously decreased to 16 members in year 2009. Aside from that, they lack good and efficient weavers who are the business primary assets. For years, they have initiated activities like training of new weavers so that the organizations business can be sustained. But because of the lack of motivation of some members of the organization, they were not able to train enough people who have the potential to make good quality products.

Currently, there are only 6 master weavers who actively participate in the making of the final product of the organization. But this manpower is not enough to accommodate orders in bulk and other deliveries demanded.

Illiteracy is also one of the problems that SACDEC is experiencing. Since some of the members of the cooperative are unable to read or write or both, they cannot hold key positions in the business thus there is a need for multitasking in the business.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Operations SACDEC is not using any advanced equipment or machinery in making their products. The production process merely depends on the weavers. In cases when the weavers are not available, production process is always interrupted. Also, they are not using any drying system which is necessary in the making of the final product and they drying of the raw materials like nito and buri solely depends on the weather condition. In cases of typhoon and rain, there is a good chance that production would cease.

Time is also one of the concerns of SACDEC. They dont have fixed time in making of the product. The weaving of product depends upon the availability of the weavers.

Marketing Since they have problems in the financial aspect of the business and that the products that they can actually supply is usually less than the actual demand, they cannot give the products their retailing outlet, Trappist, needed. Sometimes they have problems in their production and they are not able to deliver products either to Trappist or TSKI.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Future Plans of the Company Financial Proper formula for the costing of the product should be strictly followed by the organization to meet with the pricing of the industry. Every business transaction should be properly kept so that they can keep track of the changes in costs and this can aid in their decision making process.

Human Resource Since human resource is one of the main concerns of the business, they see to it that they are able to train and motivate existing members of the organization to weave. This will not only increase production but increase profit as well.

New strategies were initiated by the board of directors and the CEO to motivate the employees. They emphasized on the individual 30% share in every product sold. As additional motivation, some of the boards of directors are present during the training and they always uplift the confidence of their trainees especially those who are easily depressed.

While training some of the members to weave, it is wise to invest some time on educating some members of the cooperative to read and write. This will help them fully understand the constitution and by-laws of the organization and with understanding comes responsibility.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Operations SACDEC plans to increase the number of their output by at most 50% per month considering that in most cases they are not able to meet demands by their customers. By increasing the number of weavers through training more SACDEC members to weave, they can increase the number of production at the same time the profit of the organization.

When the business profit can sustain the needed expenses of the cooperative, it is during this time that they will incur additional investment for machineries and equipments which they can use in the faster production of their product such as drying and cutting equipments. Also, in the future, it is expected that they can have their own manufacturing factory wherein they can make products in bulk. Though machines are already present, it is still advisable that they employ quality control personnel to see to it that the quality of the products made passes the industry standards.

Marketing They expect to have more retailing outlets wherein they can display their products for the costumers to see. Since they are presently engaging in direct marketing, it is best that they continue establish this connection with them and retained their loyal customers.

Someday, they hope in engaging into product exportation when they have constant production and enough raw materials and equipments to make the product.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

SYSTEM DOCUMENTATION
Products Manufactured SACDEC is an outlet of our indigenous brothers and sisters to showcase their talents and skills in handiworks and weaving. Even before SACDEC has been fully established, the Liningwan Ati Community in Sibunag has already started weaving as part of their hobby and recreation which is a good way of socializing among the members of the community and in establishing the spirit of camaraderie between them.

It also serves as their primary source of income by creating native products through the use of available materials like buri and nito. During their free time they spend their time weaving some products which they can think of like wallet, coin purse and bags. Even though they are not in the production site, they are still able to do their respective weaving responsibilities since their product is human labor dependent and does not depend on any machines and equipment.

SACDEC produces high quality buri, nito, pandan and abaca products promoting Sibunag Itas cultural heritage and handicraft traditions. Not only this, the products are durable and earthfriendly since it does not contain any harmful chemicals that can destroy the environment. Aside from that, raw materials are identified to be biodegradable.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Figure 1 SACDEC (Sibunag Ati Community Development Cooperative) products.

Major Products Bags They are making bags such as shoulder bag, ladys back pack and the like. Native bags are already known not only locally but also in the other parts of the world. Even some of the famous foreign celebrities are using native bags in their films and movies. And the products of SACDEC have the ability to compete with those branded products. They have several colors of the bag and they accept personalize and customize orders.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Wallets and Coin Purses The wallets that they are making are good not only for females but also for males (unisex). These said wallets can also hold IDs, cards (ATM, privilege and others), and even your important small papers and documents.

The coin purse also varies in sizes and colors. It depends on the customers preferences as to the choice of color and design. Other Products Other handicrafts that they produce are placemats, hats, cellular phone holders, wine holders, and bags that can hold big sizes materials. They also produce traveling bags which are mostly made to order.

Items Bags

Price (in Php) 300.00 180.00

Wallet

130.00 100.00 50.00

Coin Purse

15.00 5.00

Placemat

45.00 30.00

Hat

150.00

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Table 1 Product prices. (Prices may vary without prior notice) Plant Size and Location Guimaras Map

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Figure 2 Panay Map

Guimaras is an island province of the Philippines located in the Western Visayas region. Among the smallest provinces, its capital is Jordan. The island is located in the Panay Gulf, between the islands of Panay and Negros. To the northwest is the province of Iloilo and to the southeast is Negros Occidental. Guimaras was a sub-province of Iloilo until it was made an independent province on May 22, 1992. http://en.wikipedia.org/wiki/Guimaras Guimaras Island

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Figure 3 Guimaras Map Guimaras is composed of 5 Municipalities namely, Jordan, Buenavista, Nueva Valencia, Sibunag and San Lorenzo. SACDEC (Sibunag Ati Community Development Cooperative) is located at the municipality of Sibunag, Guimaras. Municipality of Sibunag Guimaras SACDEC was established at Maabay Sibunag Guimaras. Sibunag was created by virtue of RA 7896, one of the two youngest municipalities in the Province of Guimaras established in 1995. Sibunag was named after its main river; abound with spellbinding folk tales and legends. Legend also says that Sibunag, son of deity & mortal was stolen when only a baby. He was cared for and raised by a fairy. His numerous and amazing adventures and romance found niche within the hearts of the folklore waters. The Municipality of Sibunag is situated southeast

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

of

Guimaras

Island facing Negros

Occidental

and separated by Guimaras

Strait.

http://guimaras.gov.ph/homepage/sibunag/

Figure 4 Sibunag Map SACDEC Location and Production Site There are two (2) headquarters or production site of SACDEC. One is located in Liningwan Maabay Sibunag Guimaras near the public market of Sibunag and the other is at the Chavez compound.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Public Market SACDEC Headquarter

Cell Site

Chavez Compound

Diagram 1. Site Location

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Accessibility and Availability of Raw Materials Raw materials like buri, nito and pandan used in the making of the final product is available for purchase in the neighboring towns of Guimaras. Since most of these aforementioned materials are growing in the wild, SACDEC has the initiative to just pluck them in places available to save cost. Otherwise they have to purchase them from places where this are available.

In the case of abaca, the TSKI has to buy them in Janiuay Iloilo and transport them in Guimaras to SACDEC where they have to repurchase the material and use them for weaving.

Other important materials include thread, clothe, dye and water. Thread, clothe and dye are often purchase in Guimaras itself and since the water used has no specifications, tap water available in the locality is used to clean the raw materials.

Proximity of Distribution Outlets The distribution center of Guimaras is at Trappist, Guimaras. They also distribute their products in nearby towns. Trappist Monastery is located at San Miguel, Jordan Guimaras. Its gifts shops and stores are located within compound of the monastery. It sells monastic processed products like mango jams, dried mango, guava jelly, kamyas prune, ginger tea, homemade cookies, religious souvenir items, products made of coconut shells and other things produced by the cultural minorities assisted by Trappist monks.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Combined Fuel and Transportation Cost Individual Orders/Special Orders In cases wherein there are made to order products or special orders, the customers are directed to go to the SACDEC headquarters to transact. In most cases, the arrangement with regards to the transportation of the product would be of the customers expense. Otherwise stated, special negotiations would take place.

Through TSKI There are also cases wherein TSKI (Taytay sa Kauswagan) would accept orders directly from customers and forward the request to SACDEC for the making of the product. In this event, SACDEC will deliver the products to TSKI but transportation cost in delivering the product will be refunded by TSKI.

Trappist Trappist is the retail outlet for SACDECs products. In this case, delivery of product to Trappist will all be shouldered by SACDEC.

Purchase of Raw Materials When purchases of raw materials are made in the neighboring town, SACDEC will have to shoulder the expenses in transportation and purchases. But in the case of abaca which is located at Janiuay Iloilo, TSKI buys the product

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

and the only transportation cost that SACDEC has to incur is the cost from Sibunag to TSKI in Guimaras.

Production Process Types of Processing System Used SACDEC uses a combination of batch processing and Just in time system in the production of their products. Batch processing system means producing large quantity of products during the production process. It is visibly evident during the peak season for SACDECs products. Since they knew that during summer there are many tourist and customers, they see to it that months before April and May they have produce a number of wallets, pouch and bags during the months of January, February and March. They make a schedule of output that they have to finish for a certain period of time. For the months of January they have already started making wallets and by the months of February and March other native products are weaved until they reach the number of target output.

But most of the time, they use Just-in time system due to the lack in their financial aspect, they make the products as they are demanded by the target market. These are in cases when special orders are place by some clients. As walk-in customers demand the production of certain products for that period, they would shift their attention in the making of that product. One good example is the travelling bag that was ordered last July 2009. A customer from Manila ordered 50 pieces of travelling bag from the weavers and since there are only six weavers and they have few time to make the output, they all shift their attention and focus their attention in producing travelling bags. At most cases, the weavers prefer this kind of scenario

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

because it gives them the assurance that their woven products are sold and that they can earn profit immediately.

Descriptive and Illustrated Procedures Buri, Pandan, Nito Material Used

Diagram 2. Showing the process for making the final product

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Purc

SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Working Plant Layout/Facilities Design

Diagram 3. Working Plant Layout SACDEC Headquarters

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Diagram 4. Working Plant Layout Chavez Compound

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Raw Materials and Supplies List of Raw Materials and Costs Most of the raw materials that are being utilized in the making of several products were mainly from the Guimaras province. Guimaras being endowed with fertilize and healthy soil is good for plants to live. It has a tropical climate with dry seasons that made it easier for plants to grow. It helps its people to have some of its needed materials in producing their goods and products. Buri, pandan and nito are some of the naturally given gifts of the land to its people. Since SACDECs products are mainly dependent on these materials, these provides easy accessibility for SACDEC to have them on as demanded. Abaca however is bought in the town of Janiuay Iloilo. TSKI (Taytay sa Kauswagan Inc.) a micro financed community development institution helps SACDEC obtain these materials through some of their employees. Ms. Chlowe Inagan, a TSKI representative assigned to assist SACDEC starting July 4, 2009 is the person responsible to buy the abaca from Iloilo and brought it to SACDEC for utilization.

Raw Material Buri Nito Pandan

Unit 1 paklang 100 pieces / 1 bundle 100 pieces / 1 bundle

Price P 10.00 P 70.00 P 25.00

Table 2 Prices of Raw Materials

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Sources and Suppliers There are no specific suppliers or sellers of the raw materials because just like buri and pandan they may get it in the wild of Sibunag and also they purchased some of the raw materials to the private growers or private people who planted the said plants and sell it. And sometimes they buy it in their local market. But the abaca, the TSKI buy it in Janiuay, Iloilo and bring it to them. Volume Required at Various Phases of Operation The number/volume required of materials that are being utilized depends on the product (its size and style). And the following table tells the number of days that will take in making the products.

Product 1. Wallet 2. Envelope 3. Bags 4. Coin purse 5. Belts 6. Cellular phone casing 7. Placemat 8. Wine bag 9. Laptop casing 10. Sling bag

Number of Days 2 2 2.5 2 2 2 2 2 2.5 2.5

Table 3. Days allotted for Production

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Physical Inventories/ Inventory Turnover SACDEC sees to it that when it is near peak season, they have already prepared a number of products that they are going to sell. They have target output even before they started making the products. Inventories are kept in the headquarters. But most of the time, SACDEC uses Just-In-Time method in the making of their product. When the orders come, they have to finish it as soon as the raw material is ready and dry. They do not have to worry of their inventories (like controlling it) because the number that they will made is slightly the same with the number that a customer orders. They maintain one product in their store to be a sample product to their next clients.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Utilities The utilities that SACDEC mostly utilized are oil, water, gas, a small amount of vinegar and light.

Utility Oil

Use / Function Use for the maintenance of the materials and equipments with

Water

metals. It is being consumed during the boiling of the raw materials such

Gas

buri and pandan. It is needed in lighting and having a flame if they will boil some of its

Vinegar

materials. During the boiling process, the water is added with vinegar in order

Light

to whiten or for bleaching purposes. It is use to dry up the materials.

Table 4. Utilities and Uses

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Machinery and Equipment List and Number of Machinery and Equipment SACDEC produces bags, mats, wallets manually or through their bare hands. Sewing machine is the only equipment that they have and they use it for placing zippers and stitches. They do not have these hi-tech, big and heavy machines / equipments. With the skills of their hands, they produce good quality products that they can be proud of.

They also have these boxes of different sizes (made of wood) serve as the frame or the basis that give shape to what they are making.

The other things that they use are cutters, scissors, thread, needles.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Material Sewing Machine

Use / Function Attaching the zippers in the products they are making and also for connecting the linen and

Wood Boxes Cutter

the product. They are use for framing or giving shape / or the base of the item. This thing is made of a block of wood with metals on top (cutter) that is use for stripping /

Scissors Threads Needles

cutting the raw materials such as pandan. An edge tool having two crossed pivoting blades that is use for cutting. A fine cord of twisted fibers used in sewing and weaving. A sharp pointed implement that is steel. The thread as its pair, the two are use in sewing and connecting materials. Table 5. Material and Function

Maintenance and Turnover The cooperative, SACDEC, uses oil as maintenance and as or preventing of building up of the rust to the metals of the sewing machine and the cutter. Worker-Machine Chart/Assignment

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

In using the sewing machine, the only equipment, there is no problem with regards to it because there are only few who knows how to use it so in assigning the machine to the worker is not so difficult.

Production Capacity and Schedule Production Capacity SACDEC produces made to order products such as bags, pouch, wallets and etc. However, on these products lines only the wallets has the stable demand every month and making it their regular production output. SACDEC delivers 5 pairs of wallet to Trappist twice a month and the remaining output would then be disposed on individual orders. Due to these concerns, the group decided to measure output on the basis of the number of wallets produced per month.

Design Capacity If there are 6 operating days in a week (26 days in a month) with 4 hour shift per day, each laborer will be expected to finish 4 wallets per day.

Calculating the design capacity would result to: Design Capacity: 4 wallets/ day * 26 days * 6 laborers= 624 wallets/month

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Effective Capacity Within the 4 hours shift the laborer is allotted 30 minutes break in between his/ her shift. That would make the output down to 3 wallets per day.

Calculating the effective capacity would result to: Effective capacity: 3 wallets/day * 26 days * 6 laborers= 468 wallets/month

Actual Rated Capacity However, in the actual shifts laborers can only make 2 wallets every 2 days.

Calculating the actual rated capacity would result to: Actual Rated Capacity: . Operating Days and Shifts 5 wallets/days * 26 days * 6 laborers = 78 wallets/month

Currently SACDEC is composed of six member weavers that are entitled to work on any time that is convenient to them. Since these members are mostly mothers they could only allocate 4-6 hours a day, 6 days a week for weaving on normal demand. Mothers often weave from 1 pm to 5 pm when their children are at school and after dinner just before they go to sleep.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Production Output/ Schedule Weavers produce .5(1/2) wallets per day. Below is SACDECs production schedule. Fridays is market day, considered their time to purchase and process the materials.

SACDEC Production Schedule (Saturday, Monday, Wednesday)

Weaver A B C D E F

Hour 3

Weaving

Cutting

Breaking

Table 6 SACDECs Production schedule on Saturday, Monday and Wednesday

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

SACDEC Production Schedule (Sunday, Tuesday, Thursday) Weaver A B C D E F 1 2 Hour 3 4 5

Assemble

Sewing

Breaking

Table 7 SACDECs Production schedule on Sunday, Tuesday, Thursday

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Efficiency Measures Capacity Utilization Capacity Utilization = Actual output / Design capacity 78 wallets per month / 624 wallets per month = 13 % Efficiency = Actual output / Effective capacity 78 wallets per month / 468 wallets per month = 17 %

As the result of the capacity utilization equation above shows, only 13% of the design capacity was utilized. The low utilization level that they have in their operations is a result of the unfixed time scheduling for members and undefined target production level per shift. Recall that on the above article, actual output is only .5 (1/2) wallet per day instead of 4 wallets per day design capacity.

Product Input- Output Transformation 9 * 8 wallets are made of buri, nito and outlined by cloth. For making 6 wallets for 2 weeks, the first thing a weaver does is to first process 2 buri leaf packs. As shown in the diagram 2 on the following page, the buri is first stripped from its leaf pack and then boiled into a big pot. Stripping the leaves often last for about 20 minutes while boiling ranges from 10 to 20 minutes. Then a bottle vinegar and papaya leaves are applied while boiling to bleach the buri. Remove from fire and rinse with cool water then expose it under heat of the sun for a day. Then soak on a basin of water for one night. The next day, rinse it till all its liquids are gone, and then dry. After it has been thoroughly dried, separate the leaves, straighten then strip. This step takes about 30 to

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

45 minutes. The next process would be boiling the buri with dye for about 5 minutes and then dry. It would then be ready for weaving. Next, weave the buri and nito. Cut the edges. Assemble and sew it with cloth linings.

Purchase materials (buri, nito, zipper, cloth, thread)

Process the buri and dry

Weave

Cut and assemble the parts

Sew the lining

Diagram 5. Process of Making a Wallet

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Wastage and Reject Levels The current 6 weavers of SACDEC are considered experts of the craft. Due to this, reject probabilities are very slim from 1 to 2 rejects a month or at zero level. On the other hand, wastages are inevitable. Excessive allocation of materials increases wastage level. Example in single buri pack only three 9 * 8 wallets could be made. And on single wallet, 45 Nito stems are utilized.

The materials are therefore not efficiently used in the case of nito since there is an excessive use of such material for a single wallet.

Waste Disposal Alternative Usage of Waste Materials The raw materials that are being utilized by the Sibunag Ati Community Development Cooperative (SACDEC) in the making of their products are identified as biodegradable. Waste or unusable materials like excess buri, nito, pandan and abaca are either thrown in compost bins to serve as fertilizers or use as wood-alternative which they use in cooking their food.

Other materials like dye wrappers and the like are thrown in trash cans classified as nonbiodegradable. Also, the used water use to clean and dye the raw materials is use in watering the plants.

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Proper consideration with regards to the environment has been properly considered by SACDEC in disposing of their waste materials. In cases wherein the product has slight defects and does not pass quality control, SACDEC chooses not to sell their products rather buys it at the amount enough to compensate the materials used.

Disposal System The excess materials used in the making of the native products made of buri, nito, pandan and abaca are either thrown in compost bins and use fertilizers or wood-alternative.

Diagram 6: Disposal System

Finished Product

Excess Materials Used

Thrown in Compost Bins

Used as Woodalternative

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Production Cost Operating Cost SACDEC rents two stalls on their municipal markets. No transportation costs are incurred for transferring products to these stalls since the houses of the members are near the market. For made to order products, freight cost are paid by the clients. SACDEC currently owns 4 sewing machines used for lining cloth to the wallet. This 2 are granted by Taytay sa Kauswagan (TSKI) and the other 2 are from DOLE. SACDEC does not have fixed salaries for the members. When sales are collected 95% of it is divided to the members and 5% of it is left for the cooperative account. Hence, SACDECs monthly operating costs are as follows:

Rent expense @ P120 each: P240 Electricity: P10 Machine maintenance: P 50

Fixed and Variable Cost o Total Cost TC = FC + v * Q

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Cost Schedule Variable Cost Direct labor per wallet Direct materials Buri (P10/3 wallets/leaf pack) Nito (45 pcs. * P.75) Cloth ( P25 / 14 wallets/cloth) Zipper(P 200/100 m / 1 meter/ 4wallets)

P0 P 3.33 33.75 1.79 .50 39.37

Indirect Materials: Thread (P 65 / 150 wallets) P Dye ( 2 leaf pack * P2) Vinegar ( 2 leaf packs * P 10 / bottle) Papaya Leaves Variable cost per wallet Fixed cost Selling Expenses Rent Electricity

0.43 4 10 0___ 14.43 P 53.80

P240 100 P340

Administrative Maintenance (P150 for 3 months) Total fixed cost 50 P390

TC = P390 + P53.80 * 78 wallets = P4586.40

Percentage Cost Fixed Cost = P390/P4,586.40

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

= 9 % of the total cost

Variable Cost = P4,196.4/P4,586.5 = 91 % of the total cost

52 % of the total cost comes from variable cost. 63 % of the variable cost comes

from

purchase of nito. To reduce variable cost the first thing that needs to be corrected is to increase the efficiency of nito usage. Since in every 9 * 8 wallet, 45 nito stems are utilized.

Break-even Points in Units Contribution Margin Selling price per wallet Variable cost per wallet Contribution margin per unit P 130 53.80 P 76.20

Break-even Point in units = Fixed Costs /Contribution Margin per unit = P390/76.20 = 5 units

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SACDEC

Sibunag Ati Community Development Cooperative

Liningwan Maabay Guimaras

Application of the Decision Process

Problem

Objectives Alternative

SOLUTIONS Analysis of the Alternative Chosen Alternative

Advantages Weavers To increase the number of trained weavers so that they are assured that they can meet product demands Train additional weavers Rest assured that when they are welltrained, the profit is for SACDEC alone.

Disadvantages Training additional weavers would mean additional expenses for training. They have to continuously motivate the trainees. Each member would receive less than the usual. Train additional weavers to that they can help to the people around them.

Outsource from other Ati community They could help other Ati community gain profit and have their livelihood. More products can be produced thus complying with the demands of the customers.

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SACDEC

Sibunag Ati Community Development Cooperative

Liningwan Maabay Guimaras

Problem

Objectives Alternative

SOLUTIONS Analysis of the Alternative Advantages More capital will be used by the cooperative to generate raw materials that they need. The cooperative will have a chance to promote their products with other institutions. Obtain additional loan from TSKI. More capital will be used by the cooperative to generate raw materials that they need for larger demands. They could be able to buy certain equipments that they need to help improve their production. There is no assurance that the loan will be approved. TSKI may pressure them to produce more products to comply with the demands of their customers. Disadvantages They need to comply and undergo a long process for the approval of the loan. Chosen Alternative Knowing that SACDEC produces products that are really good, there is a good probability that their loan from other institutions will be approved.

Financial/Capital

To have additional sources of financial support.

Obtain Loan from other financial institutions.

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SACDEC

Sibunag Ati Community Development Cooperative

Liningwan Maabay Guimaras

Problem

Objectives Alternative

SOLUTIONS Analysis of the Alternative Advantages They can produce more products that could comply with the demands of the customers and have more profits. Since it would take one year for the company to pay its debt then they need not have to worry paying every month. Obtain equipments through short-term debt. They can obtain the equipments they need outright. They can pay for the equipment in a regular basis, after they obtain revenue from every transaction. The cooperative needs to pay for the interest of the equipment. Disadvantages There is a need to educate the members who dont know how to use the equipment. Chosen Alternative Since they dont have ample money for the purchase of good equipments, it could be helpful that they obtain these equipments through longterm loan.

Equipment

To have equipments that could help hasten the production process.

Invest in equipments that could help improve the production through long-term loan

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SACDEC

Sibunag Ati Community Development Cooperative

Liningwan Maabay Guimaras

Problem

Objectives Alternative

SOLUTIONS Analysis of the Alternative Advantages Disadvantages The possibility that business secrecy will not be realized. Though it would entail additional cost for SACDEC, they should operate legally and register their business. Chosen Alternative

Laws and Regulations

To comply with the Laws impose by the Philippine government to small scale business enterprises.

Cooperate with other small scale business enterprises so that they will have an idea of the cost of every transaction and permit.

They can transact together and possibly ask for discounts in their permits. They can build a strong bond within the industry.

As for now, they can opt to not register to avoid paying the cost of permits but they should consider registering after a year.

They need not pay the additional cost for permits and registrations.

It is immoral against the law. Operating illegally can mean additional cost for them especially when they are caught. It is against their moral principles and vision.

Problem

Objectives

SOLUTIONS

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SACDEC

Sibunag Ati Community Development Cooperative

Liningwan Maabay Guimaras

Alternative

Analysis of the Alternative Advantages Disadvantages Fixed cost will be increased.

Chosen Alternative

Hours shift

To have uniform and fixed shifting hours

Build/rent a place for production.

When all workers weave in one place their focus and productivity can be increased. Lower fixed cost.

Retain the old set up and weave at home.

Shifting hours cant be regulated. Numerous distractions at home.

Since SACDEC recently has a little financial shortage, it would be better to retain the old set up for now. But in the long run, it is advisable that they should have a more systematic and impose working hours.

Problem

Objectives

SOLUTIONS

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SACDEC

Sibunag Ati Community Development Cooperative

Liningwan Maabay Guimaras

Alternative

Analysis of the Alternative Advantages Since there would be someone to concentrate on marketing. Probability of higher sales would be bigger. Disadvantages Increased administrative cost for this two marketing officers.

Chosen Alternative

Marketing

Increase sales

Assign a member(s) that would be in charged in looking and negotiating for potential stores that might sell the product of SACDEC. Connect with other organizations aside from TSKI which can act as a wholesaler or accept an order and pass it to SACDEC.

Since these organizations were already established they already have wide connections which can be good for SACDEC.

Incur commission cost.

Connect with other organizations would be preferable. Since cost would be lower because these organizations would only charge SACDEC every time there is sale.

Problem

Objectives Alternative

SOLUTIONS Analysis of the Alternative Chosen

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SACDEC

Sibunag Ati Community Development Cooperative

Liningwan Maabay Guimaras

Alternative Advantages Daily Production To increase daily production rate Designate production quota to each weavers. Production rate will be increased. Disadvantages Probability of production surplus would also be increased. Since SACDEC does not pay by hour, it would be wiser to designate quota per day instead of stretching their daily shift.

Increase daily hour shift

Higher probability of increased production rate.

Demand more time from weavers. Difficulties in implementation since workers work at home. Another is that there no way for SACDEC to check if the weavers are following the shifting hours.

Problem

Objectives Alternative

SOLUTIONS Analysis of the Alternative Chosen Alternative

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SACDEC

Sibunag Ati Community Development Cooperative

Liningwan Maabay Guimaras

Advantages Purchasing Minimize purchasing cost Assign only one member to purchase materials on wholesale and later distribute it to the members. Purchasing materials on wholesale offers more purchasing discounts. Thus, reducing purchasing cost. Purchasing cost will not be shouldered by the weavers.

Disadvantages Sales distribution would be altered. Part of the sales would be allocated for purchasing. Hence, losses would be more absorbed by the cooperative.
It would be more systematic if SACDEC would just assign a purchasing officer. This eliminates hassles on accounting and costing. It would also be easier to track the cooperatives financial status. And lastly, operations would be more stable since there would be an assurance that there will be enough money for the cooperative.

Problem

Objectives Alternative

SOLUTIONS Analysis of the Alternative Chosen

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SACDEC

Sibunag Ati Community Development Cooperative

Liningwan Maabay Guimaras

Alternative Advantages Retain old set up. Risk for the cooperative would be smaller since it is the weavers that shoulder the purchasing cost. Disadvantages Tracking the cooperatives finances would be more difficult. Another is that they would a high risk of unstable production since weavers might sometimes be short of money.

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Liningwan Maabay Guimaras

Appendices
Products

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Sibunag Ati Community Development

Liningwan Maabay Guimaras

Documentation

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SACDEC Cooperative

Sibunag Ati Community Development

Liningwan Maabay Guimaras

Proposed Brochure
Mgt 139 Class of Professor Aileen Dela Cruz

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Liningwan Maabay Guimaras

References
Interview Mrs. Gemma Chavez Valenzula Marketing In-charge and Head of Operations Sibunag Ati Community Development Cooperative

Book Operations Management 12th Edition by William Stevenson Accounting Principles 8th Edition by Weygandt, Kieso and Kimmel

Internet Sources Taken September 22, 2009 http://www.wikipedia.com http://guimaras.gov.ph/homepage/sibunag/

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Table of Contents
ACKNOWLEDGEMENT............................................................................................................1 Introduction..................................................................................................................................2 Background......................................................................................................................2 Objectives of the Study.........................................................................................................4 Significance of the Study..................................................................................................5 Scope and Limitations of the Study..................................................................................5 Methodology.....................................................................................................................6 Research Design..................................................................................................................6 Description of the Study Area...............................................................................................6 Sampling Design...................................................................................................................8 Data Collection.....................................................................................................................8 Data Analysis and Interpretation...........................................................................................8 Conceptual Framework..................................................................................................10 Definition of Terms.........................................................................................................10 Company Profile........................................................................................................................12 History............................................................................................................................12 Mission...........................................................................................................................13 Vision.............................................................................................................................13 .......................................................................................................................................13 Distinguishable Characteristics of SACDEC Weavers....................................................14 Organizational Structure.................................................................................................16 Flow of Communication..................................................................................................18 For Orders and Product Making..........................................................................................18 Meeting and Gathering.......................................................................................................18 Meeting of the Board of Directors.......................................................................................19 ........................................................................................................................................19 Functions and Responsibilities.......................................................................................20 .......................................................................................................................................21 .......................................................................................................................................21 Current Concern of Management...................................................................................22 Financial.............................................................................................................................22 Human Resource................................................................................................................22 Operations..........................................................................................................................23 Marketing............................................................................................................................23 .......................................................................................................................................23 Future Plans of the Company.........................................................................................24 Financial.............................................................................................................................24 Human Resource................................................................................................................24 Operations..........................................................................................................................25 Marketing............................................................................................................................25

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Liningwan Maabay Guimaras

SYSTEM DOCUMENTATION....................................................................................................26 Products Manufactured..................................................................................................26 .......................................................................................................................................28 Major Products...............................................................................................................28 Bags...................................................................................................................................28 Wallets and Coin Purses.....................................................................................................29 Other Products....................................................................................................................29 Plant Size and Location.................................................................................................30 Guimaras Map....................................................................................................................30 Municipality of Sibunag Guimaras.......................................................................................32 SACDEC Location and Production Site.............................................................................33 Accessibility and Availability of Raw Materials ...................................................................35 Proximity of Distribution Outlets..........................................................................................35 Combined Fuel and Transportation Cost............................................................................36 Production Process......................................................................................................37 Types of Processing System Used.....................................................................................37 Descriptive and Illustrated Procedures...............................................................................38 Working Plant Layout/Facilities Design...............................................................................39 Raw Materials and Supplies...........................................................................................41 List of Raw Materials and Costs..........................................................................................41 Sources and Suppliers........................................................................................................42 Volume Required at Various Phases of Operation..............................................................42 Physical Inventories/ Inventory Turnover ...........................................................................43 .......................................................................................................................................43 Utilities ...........................................................................................................................44 .......................................................................................................................................45 Machinery and Equipment..............................................................................................46 List and Number of Machinery and Equipment...................................................................46 Maintenance and Turnover.................................................................................................47 Worker-Machine Chart/Assignment....................................................................................47 Production Capacity and Schedule.................................................................................48 Production Capacity............................................................................................................48 Operating Days and Shifts..................................................................................................49 Production Output/ Schedule..............................................................................................50 Efficiency Measures............................................................................................................52 Waste Disposal..............................................................................................................54 Alternative Usage of Waste Materials.................................................................................54 Disposal System.................................................................................................................55 Production Cost..............................................................................................................56 Operating Cost....................................................................................................................56 Fixed and Variable Cost......................................................................................................56 Application of the Decision Process...........................................................................................59 Appendices................................................................................................................................68 Products.........................................................................................................................68 Documentation...............................................................................................................69 Proposed Brochure....................................................................................................................70

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Liningwan Maabay Guimaras

References................................................................................................................................71 Interview.........................................................................................................................71 Book...............................................................................................................................71 Internet Sources ............................................................................................................71 Table of Contents.......................................................................................................................72

iv

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