Feasibility Study Manuscript ACT Auto Repair Shop FInal

A FEASIBILITY STUDY ON ESTABLISHING AN AUTO REPAIR SHOP WITH
MOBILE APPLICATION
A Feasibility Study
Submitted to the Faculty of the
College of Engineering, Computer Studies, and Architecture
Lyceum of the Philippines University- Cavite
In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Industrial Engineering
ANGELES, DORITHY JOY P.
CACAS, JOHN RAMEL T.
TOREGOZA MOISES BRYAN J.
i
LYCEUM OF THE PHILIPPINES UNIVERSITY - CAVITE
College of Engineering, Computer Studies and Architecture

Bachelor of Science in Industrial Engineering
Abstract
A FEASIBILITY STUDY ON ESTABLISHING AN AUTO REPAIR SHOP WITH

MOBILE APPLICATION
Dorithy Joy P. Angeles , John Ramel T. Cacas , Moises Bryan J.

1 2
Toregoza , Engr. John Paolo P. Severino

3 4
Proponents and Research Adviser

1, 2, 3 4
ACT! Auto Repair Shop is an auto repair shop accompanied by a mobile

application so that riders in Tagaytay City can contact whenever their vehicles have
encountered problems along the way. This service provides auto repair shop services
with just a click from the mobile application. Whenever a client requires services, an
experienced mechanic will come to aid from the main office with full knowledge of what
the client needs by the information provided by the client from the mobile application.
ACT! Auto Repair Shop also accepts walk-in repairs and will provide quality service as
well.
Keywords: Auto Repair Shop, mobile application, mechanic, repairs
ii
APPROVAL SHEET
This project proposal entitle A FEASIBILITY STUDY ON ESTABLISHING AN AUTO

REPAIR SHOP WITH MOBILE APPLICATION by DORITHY JOY P. ANGELES,
JOHN RAMEL T. CACAS AND MOISES BRYAN J. TOREGOZA has been reviewed
and recommended as partial fulfillment of the requirement for the degree of Bachelor of
Science in Industrial Engineering.
ENGR. John Paolo P. Severino

Research Adviser
Accepted and approved by the panel of examiners following a successful Oral Defense on
_____ with grade of ________
ENGR. JELYN M. RODRIGUEZ ENGR. JOSEPH VINCENT E. DAVID

Panelist Panelist
ENGR. LAARNIE P. CARLOS ENGR. ANNALYN P. ROMERO

Panelist Panel Chairman
Accepted and approved in partial fulfillment of the requirements for the degree of Bachelor of
Science in Industrial Engineering.
ENGR. ARNEL M. AVELINO, MEP – ECE

OIC, Dean
DR. RAMON C. MANIAGO

Executive Director for Academic Affairs
iii
ACKNOWLEDGEMENT
The success of this feasibility study would not have been achieved without
guidance and help of several individuals who contributed and extended their
valuable assistance in the preparation of this study.
First and foremost, the proponents would like to extend their utmost gratitude
to their research adviser; Engr. John Paolo P. Severino who was very helpful, supportive
and greatly shares knowledge to them with patience and diligence in helping them
in completing the necessary works throughout the study. Deepest gratitude is also due to
the members of the panel of examiners, Engr. Annalyn P. Romero, Engr. Jelyn M.
Rodriguez, Engr. Joseph Vincent E. David, and Engr. Laarnie P. Carlos for guiding them
and sharing great ideas that enable them to improve and complete the research study.
Special thanks also to Ann D. Famuleras and Aldren Narzoles for all-out support,
guidance and sharing their knowledge.
The researchers would like to express their love and gratitude to their
beloved family whom they owe a lot and became their constant source of support
and encouragement, for their unconditional understanding and motivation that inspire
them in the duration of their studies.
Above all, the researchers would like to give their sincerest and
warmest appreciation to the Lord and Savior, ALMIGHTY GOD, in securing their safety
and furnishing them the necessary resources that leads for the accomplishment of this
study and became their constant source of their strength, knowledge, skills, patience,
health, and blessing, who always hears their prayers, guides their path throughout the
journey in life and make this research study a success.
ANGELES, DORITHY JOY P.

CACAS, JOHN RAMEL T.
TOREGOZA, MOISES BRYAN
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TABLE OF CONTENTS
Title Page………………………………………………………………………………….........i
Abstract………………………………………………………………………………………...ii
Approval Sheet………………………………………………………………………………...iii
Acknowledgements…………………………………………………………………………….iv
Table of Contents………………………………………………………………………………v
CHAPTER I – Introduction
Introduction…………………………………………………………………………………….1
Background of the Study……………………………………………………………………….1
Objectives………………………………………….……………………………………………1
General Objective…………………………………………………………………………1
Specific Objectives………………………………………………………………………..2
Figure 1.1 Design of the Mobile Application...………….……………………………...2
Figure 1.2 Design of the Mobile Application……………………….…………………………..3
Business Name………………………………………………………………………………….3
Figure 1.3 Business Logo of ACT! Auto Repair Shop…………………………………………3
Figure 1.4 Business Location…………………………………………………………………...4
Marketing Aspect……………………………………………………………………………….5
Technical Aspect………………………………………………………………………………..5
Financial Aspect………………………………………………………………………………...6
Management Aspect…………………………………………………………………………….6
Socio-economic Aspect……………………………….………………………………………...6
v
CHAPTER II – Marketing Study
Introduction…………………………………………………………………………………….7
Objectives………………………………………………………………………………………7
General Objective…………………………………………………………………………7
Specific Objectives..………………………………………………………………………7
Scope and Limitations…………………………………………………………………………..8
Methodology……………………………………………………………………………………8
Assumptions…………………………………………………………………………………...9
Service Description……………………………………………….……………………………10
Service Background ……………………………………………………………………..10
Service Rationale………………………………………………………………………...11
Market Analysis……………………………………………….……………………………….12
Market Segmentation Analysis…………………………………………………………..12
Demand Analysis………………………………………………………………………...12
Demand Determinants…………………………………………………………...12
Figure 2.1 Gender of the Respondents………………………………………………………..13
Figure 2.2 Age of the Respondents………………...…………………………………………13
Figure 2.3 Educational Attainment of the Respondents………………………………………14
Figure 2.4 Employment Status of the Respondents…………………………………………...14
Figure 2.5 Monthly income of the Respondents………………………………………………15
Figure 2.6 Purpose of the Trip to Tagaytay City of the Respondents…………………………15
Figure 2.7 Vehicle of the Respondents………………………………………………………..16
Figure 2.8 Times of Visit of the Respondents in Tagaytay City……………………………...16
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Figure 2.9 Problems of the Respondents during Trip……………………………………....…17
Figure 2.10 How the Respondents solve the problem during trip in Tagaytay City……..…...17
Figure 2.11 Common problems that the Respondents encounter………………………….....18
Figure 2.12 Respondents’ experience difficulties when in search for help…………………..18
Figure 2.13 Respondents’ approval of using ACT! Auto Repair Shop Mobile
Application……………………………………………………………………..……….19
Historical Population…………………………………………………………………….20
Number of Motor Vehicles Registered by Type in Tagaytay Extension Office for CY
2015 – CY 2019………………………………………………………………………….21
Demand Projection…………………………………………………………………...….23
Forecasted Demand………………………………………………………………………24
Industry Analysis………………………………………………………………………...25
PEST……………………………………………………………………………………..25
Political Factor…………………………………………………………………...25
Economic Factor…………………………………………………………………25
Social Factor……………………………………………………………………..26
Technological Factor…………………………………………………………….26
Competitor Analysis……………………………….…………………………………………..27
Background of Existing Competitors……………………………………………………27
Direct Competitors………………………………………………………………27
Indirect Competitors……………………………………………………………. 27
SWOT Analysis………………………………………………………………………….28
Supply Analysis……………………….……………………………………………………….30
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Supply Determinants…………………………………………………………………….30
Historical Supply………………………………………………………………………...31
Supply Projection………………………………………………………………………...31
Gap Analysis…………………………………………………………………………………..32
Demand and Supply Gap………………………………………………………………...32
Channel Analysis…………………………………….………………………………………...32
Market Share……………………………………………….…………………………………..33
Marketing Strategy…………………………………………………………………………….34
Pricing Strategy………………………………………………………………………………..35
Promotions Strategy…………………………………...…….………………………………...35
Location Strategy……………………………………………………………………………...36
Conclusion………………………………………….………………………………………….37
CHAPTER III – Technical Study
Introduction……………………………………………………………………………………40
Objectives……………………………………………………….……………………………..40
General Objective………………………………………………………………………..40
Specific Objectives………………………………………………………………………40
Scope and Limitation………………………………………………………………………….41
Methodology…………………………………………………………………………………..41
Assumptions…………………………………………………………………………………...41
Preliminary Information of Requirements…………………………………………………….42
Service Information……………………………………………………………………...42
Market Information………………………………………………………………………42
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Market Segmentation…………………………………………………………….42
Geographical Segmentation……………………………………………...42
Demographical Segmentation……………………………………………43
Psychographic Segmentation…………………………………………….43
Demand-Supply………………………………………………….43
Service Process……………………………………….………………………………………..45
Service Rationale………………………………………………………………………...45
Service Process: Flow Chart and Activity……………………………………………….45
Figure 3.1 Service Process………………………………….………………………………….46
Services Offered………………………………….……………………………………………47
Raw Materials…………………………………….……………………………………………49
Raw Materials Description………………………………………………………………49
Bill of Raw Materials…………………………………………………………………….51
Raw Materials Suppliers…………………………………………………………………51
Raw Materials Supplier Evaluation……………………………………………………...54
Machines, Equipment, Supplies……………………………………………………………….54
Table 3.7 Amount and Specifications of the Machines………………………………….54
Table 3.8 Amount and Specifications of the Equipments……………………………….55
Table 3.9 Amount and Specifications of the Supplies…………………………………...58
Table 3.10 Total Amount for the Machines, Equipment, and Supplies………...……….63
Machines and Equipment Suppliers…………………………...………………………...63
Machines, Equipment, and Supplies Supplier Evaluation……………………………….65
Capacity Plan……………………………………………………………………………….….67
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System Capacity…………………………………………………………………………67
Annual, Monthly, Daily Capacity (per process)………...……………………….67
Machine Capacity………………………………………………………………………..68
Service Plan………………….………………………………………………………………...69
Service Schedule……………….………………………………………………………...69
Maintenance Schedule……………………..…………………………………………………..70
Manpower Complement………………………….……………………………………………72
Direct Manpower………………………………………………………………………...72
Indirect Manpower………………….……………………………………………………72
Facilities Plan…………………………………….……………………………………………72
The Plant Site……………….……………………………………………………………72
The Plant Layout…………………………………………………………………………73
Plant Requirements………………………………………………………………………74
Utilities Provider…………………………………………………………………………79
Shipment: Building Dock………………………………………………………………..79
Waste Management……………………………………………………………………………80
Conclusion……………………………………….…………………………………………….81
CHAPTER IV – Financial Study
Introduction…………………………………………………………………………………...82
Objectives……………………………………………………………………………………..82
General Objective………………………………………………………………………..82
Scope and Limitation………………………………………………………………………….82
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Financial Assumptions………………………………………………………………………...83
Estimated Total Project Cost…………………………………………………………….83
Initial Capital Requirements……………………………………………………..83
Sources of Funds……………….………………………………………………..84
Pre-Operating Costs…………………….……………………………………….85
Services Offered and Prices………………………………..………………………………….86
Service Revenue…………..…………………………………………………………………...86
Financial Ratios…………………..……………………………………………………………89
Conclusion………………………………..……………………………………………………91
CHAPTER V – Management Study
Introduction………………..…………………………………………………………………..93
Objectives……………………….……………………………………………………………..93
General Objective………………………….…………………………………………….93
Scope and Limitation………………………………………….………………………………93
Forms of Ownership……..…………………………………………………………………….94
Organizational Structure………..……………………………………………………………...95
Personnel Qualification and Function……………………………..…………………………..96
Compensation and Benefits Program…………………….…………………………………..102
Our Vision………………………………………………….………………………………...103
Our Mission……………………………………………………….………………………….103
Our Core Values……………………………………………………….……………………..103
Safety Rule, Policies, and Procedures……………….……………………………………….104
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General Safety Rules…………………………………………………………………...104
Electrical Safety………………………………………………………………………..105
Office Safety…………………………………………………………………………...105
Lifting Procedures………...……………………………………………………………106
Shop Safety……………………………………………………………………………..107
Vehicle Safety…………………………………………………………………………..108
Tire Safety…………...…………………………………………………………………108
Electrical Tool Safety…………………………………………………………………..109
Hand Tool Safety……………………………………………………………………….109
Automotive Lifts………………………………………………………………………..110
Hiring Process and Procedures………………………….……………………………………111
Personnel Requisitions………………………………………………………………….111
Intake Meetings…………………………………………………...……………………111
Job Postings…………………………………………………………………………….112
Internal Applicants……………………………………………………………………...112
Interview Process……………………………………………………………………….112
Requirements…………………………………………………………………………...113
Attendance Policy………………………………………………………………………113
Attendance/Punctuality…………………………………………………………………113
Absence without Notice…………………………….…………………………………..114
Conclusion…………………………………………………….……………………………...114
CHAPTER VI – Social Economic Study
Introduction…………………………………………………………..………………………115
xii
Objectives…………………….………………………………………………………………115
General Objective………………………………………………………………………115
Specific Objectives……………………………………………………………………..115
Scope and Limitations……………………………….……………………………………….116
Identification of Socio-Economic and Environmental Goals……….……………………….116
Social Desirability……………………………………………………………………………116
Revenue Generation………………………………………………………………………….117
Economic Desirability Tax Generation……………………………………………….……...117
Corporate Social Responsibility…………………………………………….………………..117
Impact Assessment…………………………………………………….……………………..117
Contribution to Philippine Economy…………………………………………………...117
Contribution to Community…………………………………………………………….118
Conclusion………………………………………………….………………………………...118
CHAPTER VII – Conclusion
Marketing Aspect…………………………………………………………………………….119
Technical Aspect……………………………………………………………………………..121
Financial Aspect……………………………………………………………………………...121
Management Aspect………………………………………………………………………….122
Socio-economic Aspect…………………………….………………………………………...122
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CHAPTER I
INTRODUCTION
As time goes by, modernization progresses; along with this, people's need for more
convenient means of transportation increases. Presently, a significant number of people own a
vehicle, either a car, motorcycle or any other kind. Vehicles are simply machines; at times they
fail at the most unexpected situations. Worse scenario is, when the unanticipated failure
happens at an unfamiliar place, when seeking assistance from others is almost impossible ,
and when there is no vulcanizing or repair shop within reach. In order to address difficulties
during unforeseen troubles among vehicles, an auto repair shop mobile application is
necessary.
Background of the Study
Modernization is continuous . In relation to this, there many people who own different
types of vehicles like cars, motorcycles or any other kinds. However, failure among these
vehicles is inevitable. There are instances that there is no one or nothing available to help in
fixing the trouble. Consequently, the drivers can contact mobile applications of auto repair
shops and services which can locate the motorists’ whereabouts and to help as quick as
possible in cases of vehicle malfunctions like flat tire, overheated engine, and the likes. Hence,
the researchers came up with the idea of establishing a Mobile Application implementing auto
repair shop and services in Tagaytay, Cavite.
Objectives
A. General Objective
The main objective of this study is to determine the feasibility of Vulcanizing and
Repair Shop’ Mobile Application.
1
B. Specific objectives
 to determine the marketing aspect of the study
 to determine the technical aspect of the study
 to determine the financial aspect of the study
 to determine the management aspect of the study
 to determine the socio-economic aspect of the study
ACT! Auto Repair Shop’s Mobile Application
Figure 1.1 design of the mobile application
2
Figure 1.2 design of the mobile application
Business Name:
ACT! Auto Repair Shop, it is the combination of the owner’s surname. In the
abbreviation, A stands for Angeles, C stands for Cacas, and T stands for Toregoza.
Business Logo:
Figure 1.3 business logo of ACT! Auto Repair Shop
Figure 1.3 shows the business logo of the company. The car in a half means broken or
need to be fixed and the man with a tool means response
3
Business Location:
Figure
1.4
location of ACT! Auto Repair Shop
Figure 1.4 shows the location of ACT! Auto Repair Shop which is at 1000 Luksuhin –
Mangas Road, Alfonso, Cavite, Philippines.
Marketing Aspect
ACT! Auto Repair Shop is a business that provides vehicle repair and other services to
customers or vehicle owners. Revenues are generated from replacement part and mechanic
labor sale. The services can be in more detail, such as emergency or scheduled maintenance,
brake repair, transmission, wheel alignments, rims and tires and also comprehensive engine
repair. The researchers conducted a survey among 365 respondents from different motorists
who travel within Tagaytay City and gathered data to support the study. Data from the
questionnaire revealed that 64.4 % male and 35.6 % female motorists pass through the area.
In terms of age, 39.5 % is 22-26 years old; 23.6 % is 27-31 years old; 12.1 % is 32-36 years
old; 11 % 17-21 years old, and others is 13.8% respectively. When it comes to purpose for
visiting Tagaytay City, 67.7 % of the respondents are tourists; 16.2 % of the respondents come
4
for work- related concerns; 9.6 % of the respondents are residents and below 10 % of the
respondents visit their relatives.
The researchers determined that there is 100% gap between the demand and supply for
this kind of services. ACT! Auto Repair Shop has no direct competitors that provide the same
services.
With this, the proponents sought the marketability of the proposed business to enter the market.
The Gross profit of the company will be derived from deducting all the costs.
Technical Aspect
It appears based on the available information that Location 2 at 1000 Luksuhin –
Mangas Road, Alfonso, Cavite, Philippines has the greatest composite value.
There are three possible location for the business: Location 1 is at 154 Tagaytay –
Nasugbu Highway, Tagaytay, Cavite; Location 2 is at 1000 Luksuhin – Mangas Road, Alfonso
Cavite; and Location 3 is at 18 Madison St. Alfonso, Cavite. The ACT! Auto Repair Shop is
located in a 00 sq. m at 1000 Luksuhin – Mangas Road, Alfonso, Cavite, Philippines. The
location was selected through considered rated using Factor Rating. It appears based on the
available information that Location 2 at 1000 Luksuhin – Mangas Road, Alfonso, Cavite,
Philippines has the greatest composite value.
The evaluated suppliers that have the lowest unit price offered for the raw materials and
equipment is New Banawe Auto Supply at 22 Banawe St. Quezon City, 111 Metro Manila; and
for the supplies is Shopee.
The operating time of ACT! Auto Repair Shop is twenty-four (24) hours.
5
Financial Aspect
The financial study on the proposed business ACT! Auto Repair Shop is a viable
business. The proponents projected that the initial capital requirements cost is Php 890,866.00
to operate the business. The proponents successfully created financial statements that will
represent the performance of the proposed business within the five-year term. Assumptions are
used to determine the possible future revenues and expenditures of the company. The proposed
business is financially viable with a payback period of ten months.
Management Aspect
The ACT! Auto Repair Shop is a general partnership type of business that consists of
three business owners. The business is composed of a project manager, two officers- in -
charge, technician and marketing assistant. ACT! Auto Repair Shop will provide the detailed
compensation and benefits to the employees and believes that having qualified individuals to
fill positions contributes to the overall success of the company.
Socio-economic Aspect
The ACT! Auto Repair Shop is not only for the profit purposes but also for the
improvement of the welfare of the people through integrating social and environmental goals
into business operations. Assessing the contribution of the business in providing benefits to the
economy, environment and community helps the business to have a high probability of success
and be accepted by the society. People tend to have their vehicles serviced at a shop close to
their home or place of employment. As a result, in an area where new homes are being built or
new businesses are opening local business growth can be positively impacted.
6
CHAPTER II
MARKETING STUDY
1. INTRODUCTION
Marketing refers to activities a company undertakes to promote the buying or selling of a
product or service. Marketing includes advertising, selling, and delivering products to
consumers or other businesses. Some marketing is done by affiliates on behalf of a company. It
includes the process of gathering, analyzing, and interpretation of data and information about
the target market, the product or service to be offered in the market, history of the potential
customers, and the location and needs of the target market. The essence of accurate gathering
data and information can make a business to be success because it provides rich information
about the prospective customers and the competition.
1.1 Objectives
General Objectives:
The main objective of this aspect is to determine the marketing feasibility of Vulcanizing
and Repair Shop’ Mobile Application.
Specific Objectives:
 to identify the target market
 to determine the supply and demand of the business
 to measure and identify the demand gap
 to determine if the demand is sufficient to sustain the service
 to know what marketing strategy is to be used
7
1.2 Scope and Limitations
The research focuses on determining the market analysis wherein the market
segmentation, demand analysis, industry analysis, supply analysis, gap analysis and channel
analysis and marketing strategy.
Target Market:
The target market of the study are the residents, motorists and tourists within the
City of Tagaytay.
1.3 Methodology
To gather the needed information in this study, the researchers used the following
methods:
Document Record
 The researchers gathered data about the total population of motorists and
tourists within the City of Tagaytay from age of 17 years old to 61 years old
and above, educational attainment, employment status, monthly income,
purpose of trip to Tagaytay City, kind of vehicle, times of visiting Tagaytay
City, experience problems, common problems, and the likes.
Stratified Sampling Method
 Stratified sampling was used by the researchers to divide the sampling from
a population into subpopulations.
Questionnaire
 The researchers provided questionnaire for the respondents to gather the
needed information in the study.
8
Survey
 The researchers conducted survey from 17 years old to 61 years old above
residents, tourists and motorists within Tagaytay City.
The data were gathered from the following:
 Tagaytay City, Cavite, Philippines Target market with residents from 17
years old to 61 years old and above
 Tagaytay City, Cavite, Philippines Target market with motorists from 17
 Tagaytay City, Cavite, Philippines Target market with tourists from 17
1.4 Assumptions
The researchers assumed that:
 the target markets of the service are 17 years old to 61 years old and above
in various barangays within Tagaytay City, Cavite;
 the establishment of the business will be located at 1000 Luksuhin – Mangas
Road, Alfonso, Cavite, Philippines;
 the demand of auto repair shop is potentially increasing;
 the forecasted demand will avail the services provided by the business;
 ongoing service contracts ensure steady income for the shop; and
 reduce cash flow problems both in the short and long-term.
9
2. SERVICE DESCRIPTION
2.1 Service Background
Auto repair business is amongst the highly thriving and profitable easy to setup auto
services related business idea can successfully start. Car repairs are one business that
never goes into extinction. This is because daily, fleets of cars are being added to the
garages of people and so whether it is a brand-new car or a fairly used one, it can be sure
that sometime in the future car repair would be inevitable. With the introduction of
technopreneurship, almost everything nowadays can be found in mobile applications
ranging from services to products.
ACT! Auto Repair Shop is to provide professional auto repair, maintenance and
other auto repair related services that will assist businesses, individuals, households and
non-profit organizations who own automobiles in ensuring that their automobiles are
always in good shape through a simple click from their smart phones.
ACT! Auto Repair Shop provides a wide range of auto repair services. These
include:
 vulcanizing;
 battery charging;
 radiator cleaning;
 hose replacement;
 brake pad replacement;
 alternator replacement;
 alternator repair;
 overhaul starter; and
 battery replacement.
10
Each job or project will be on a reservation basis; although the company will accept a
small percentage of drive-in repair work.
2.2 Service Rationale
ACT! Auto Repair Shop offers a wide range of services. It is ultimately the goal of
the company to offer a one-stop facility for all auto servicing needs, including brakes,
transmission, and others. In this way, the company can offer greater perceived value for
the customer than many other shops which specialize in certain areas.
The industry is highly competitive with suppliers having a great deal of power in
setting and negotiating the prices of their products and services to repair shops. In
addition, because the customers see the service as undifferentiated with little value
separation between competitors, buyer power is also high. The barriers to entry are
moderately low, and the large number of competitors in this field, including substitutes
that the pricing for such services is very competitive. The only way to have an advantage
in this industry is a low-cost leadership principal applied aggressively or to create higher
switching costs through the building of strong business to customer ties.
ACT! Auto Repair Shop will be hired trained and certified mechanics who are able
to prove to have superior customer awareness and interaction. It is the company’s
professional people who will fulfill the firm’s contracts and goals. The largest part of the
company’s expenses will be in labor costs.
3. MARKET ANALYSIS
11
3.1 Market Segmentation Analysis
Market Segmentation is the study of business practice that determines how a
business enterprise divides customers into smaller groups based on characteristics and
common ground share.
Table 2.1
Geographical Segmentation
VARIABLE DESCRIPTION
_________________________________________________________________________
Country Philippines
Region IV- A CALABARAZON
City Tagaytay City
Area Type Rural
__________________________________________________________________________
Table 2.1 shows the information about the target market location which is Tagaytay City.
3.2 Demand Analysis
3.2.1 Demand Determinants
Survey Result
The researchers conducted a survey to 365 respondents from 17
years old to 61 years old and above residents and motorists within
Tagaytay City. The graphs shown below represent the necessary questions
used to determine the needed possible information of the business. The
survey results are the following:
12
Figure 2.1 shows that among
Figure the 365ofrespondents,
2.1 gender 64.4 % was male and 35.6 % was
the respondents
female, respectively.
13
Figure 2.2 age of the respondents
Figure 2.2 presents the different age of the respondents. Results show that 39.5 % aged 22-26
years old; 23.6 % aged 27-31 years old; 12.1 % aged 32-36 years old; 11 % aged 17-21 years
old; and others is 13.8%.
Figure 2.3 educational attainment of the respondents
Figure 2.3 shows the educational attainment of the respondents. Data revealed that 65.2
% of the respondents were college graduate; 24.1 % of the respondents were undergraduate,
9.6 % of the respondents were high school graduate; and below 5 % of the respondents were
elementary graduate.
14
Figure 2.4 employment status of the respondents
Figure 2.4 shows the employment status of the respondent. Data revealed that 77 % of
the respondents were employed; and 23 % of the respondents were unemployed.
Figure 2.5 monthly income of the respondents
15
Figure 2.5 presents the monthly income of the respondents. It was revealed that 27.4
earned Php 20,000 – 30,000; 25.2 % earned Php 10,000 – 20,000; 23. 8 % earned Php 0 –
10,000; 10.7 % earned Php 50,000 and above; and below 20 % was Php 30,000 – 50,000.
Figure 2.6 purpose of the trip to Tagaytay City of the respondents
Figure 2.6 illustrates the respondents’ purpose for visiting Tagaytay City. Results show
that 67.7 % of the respondents were tourists; 16.2 % visited for work – related concerns;
9.6% were residents; and below 10 % visited a relative.
16
Figure 2.7 kinds of vehicles of the respondents
Figure 2.7 illustrates the vehicles used by the respondents. It was shown that 48.48 % of
the respondents used SUV/sedan; 32.86 % of the respondents used motorcycle; and 18.66 % of
the respondents used 4x4/van.
Figure 2.8 presents how many times the respondents visited Tagaytay City. Data revealed
Figure
that 56.2 % of the 2.8 times of
respondents visit of the
sometimes respondents
visited the cityinwhile
Tagaytay
43.8City
% of the respondents
always visited the place.
17
Figure 2.9 problems of the respondents during their trip in Tagaytay
Figure 2.9 shows the respondents’ experience during their trip in Tagaytay City.
Findings revealed that 86 % of the respondents experienced problems during their trip, while
14 % of the respondents did not experience problems during their trip.
Figure 2.10 illustrates how the respondents solve the problem during their trip in
Tagaytay City. Results show

Figure thatResponse
2.10 58.6 % ofofthe
therespondents
Respondentscalled for local
in Solving repair shop; 33.2 %
Problem
of fixed it; and below 10 % did other things.
18
Figure 2.11 shows the common problems that the respondents encountered during their
trips. It was revealed that 48.5 % of the respondents had flat tires; 17.3 % experienced engine
overheat; 16.7 % had an empty fuel; 8.2 % had a dead battery; 6.6 % had a failed starter; and
below 5 % had other related problems.
Figure 2.12 experienced difficulties of the respondents
19
Figure 2.12 presents the difficulties suffered by the respondents when in search for help. Data
showed that 87.9 % experienced difficulties in searching for help, while 12.1 % did not
experience difficulty in searching for help.
Figure 2.13 respondent’s approval of ACT! Auto Repair Shop Mobile application
Figure 2.13 shows that 97 % of the respondents said that the problem can be solved by
using mobile application; and 3 % stated that the problem cannot be solved by using a
mobile application.
Historical Population
Table 2.1
Historical Population
YEAR HISTORICAL POPULATION

________________________________________________________________________
20
2015 598, 761
2016 734,745
2017 788.,524
2018 1,006,044
2019 1,298,279
_________________________________________________________________________
Table 2.1 shows the number of travelers in the City of Tagaytay Extension Office for CY
2015 – CY 2019
Table 2.2
Number of Motor Vehicles Registered by Type in Tagaytay Extension Office for CY-2015 – CY
2020
TYPE OF MOTOR VEHICLE

AGENCY TOTAL
Cars UV SUV Trucks Buses MC/T Trailers
C
Tagaytay 9,188 17,957 2,506 893 100 19,412 16 50,072
Extension
Office
Table 2.3 Number of Motor Vehicles Registered by Type in Tagaytay Extension Office for CY
2016

AGENCY TOTAL
C
Tagaytay 9,157 17,047 2,621 869 69 20,390 20 50,173
Extension
Office
Table 2.4
Number of Motor Vehicles Registered by Type in Tagaytay Extension Office for CY 2017

21
AGENCY TOTAL
C
Tagaytay 10,571 18,058 3,251 834 58 24,354 27 57,153
Extension
Office
Table 2.5

AGENCY TOTAL
C
Tagaytay 12,976 20,883 4,276 1,055 60 32,048 23 71,321
Extension
Office
Table 2.6

AGENCY TOTAL
C
Tagaytay 13,986 22,059 4,777 1,109 81 35,603 23 77,638
Extension
Office
Table 2.7

AGENCY TOTAL
C
Tagaytay 15,073 23,974 4,982 1,153 92 38,781 25 84,080
Extension
Office
22
3.2.2 Demand Projection
Demand Projection is a way for estimation of probable demand for a
product or services in the future.
Linear Regression Method is a statistical tool that was used by the
researchers to predict the number of respondents to use mobile application.
Percentage of acceptance is based on the willingness of the respondents
to use the mobile application.
Linear Regression Formula:
where;
x= year
y= population
Forecasted Demand
Table 2.8
Number of Travelers in Accommodation Establishments in the City of Tagaytay CY 2020 – CY
2024
YEAR FORECASTED DEMAND

______________________________________________________________________________
2020 1,590,514
2021 1,882,794
23
2022 2,174,984
2023 2,759,454
______________________________________________________________________________
3.3 Industry Analysis
3.3.1 PEST
PEST Analysis (political, economic, social and technological) is a
management method whereby an organization can assess major external factors
that influence its operation in order to become more competitive in the market. As
described by the acronym, those four areas are central to this model.
I. Political Factor
Political factors play a significant role in determining the factors that can
impact a company’s long-term profitability in a certain country or market. There
are a number of government agencies that a company must register when starting
a company and hiring employees. It is essential to register for a company to avoid
any legal problems once business operations begin. The company must be
registered within the Department of Trade and Industry
(DTI). As well as being registered to government agencies, the company
must also secure a business or a mayor’s permit in the respective location of the
company or local municipality.
II. Economic Factor
The state of the economy can decide many of the important details that
come up in an operating company, including topics such as consumer demand,
taxes and asset value. For a business, key economic factors include labor costs,
24
interest rates, government policy, taxes and management. These factors are not in
direct relation with business, but it influences the investment value in the future.
In business, by studying and analyzing it, it helps one too when to invest, where to
invest and when to take money out and also be prepared for a change in economic
factor and its consequences by knowing the impact of economic factors that can
take the right decision in terms of investment.
III. Social Factor
The company should look into these factors such as social attitudes,
behavior, and trends that impact the organization and target market. Customers’
beliefs and values need to be looked into because customers are detrimental to
their purchasing habits. Most motorists have a hard time locating nearby
vulcanizing and repair shops when their vehicle gets in trouble along the way. The
company gives convenience and efficiency in providing emergency service for
our target customers as the rise in vehicle owners within the scope is rapidly
increasing.
IV. Technological Factor
Technology is a key factor when it comes to starting up a company.
Customers want a fast and easy way of accessing products and services. With the
introduction and popularity of technopreneurship, it would impact the company’s
way of introducing itself to the market. It is shaping the field of service enabling
both customers and employees to get and provide customized services. The
technology has been the basic force behind the service innovation. With the
technology today, the company’s target market can easily access the service it
25
offers. It is shaping the field of service enabling both customers and employees to
get and provide customized services. The technology has been the basic force
behind the service innovation. Social media marketing is a powerful way for
businesses of all sizes to reach prospects and customers.
3.4 Competitor Analysis
Competitor analysis is an important requirement in any business plan; it is a way of
assessing and analyzing the comparative strengths and weaknesses of competitors. It may
include their current and potential product and service development and marketing
strategies.
3.4.1 Background of Existing Competitors
Direct competitors are businesses that produce a virtually identical product
or service that is offered for sale within the same market as those produced by one
or more other companies.
Indirect competitors are businesses that are offering products and services
that are close substitutes. These competitors are probably targeting the markets
with a same or similar value proposition but delivering a different product.
I. Direct Competitors
The company has no direct competitors that provide the same services that
specializes in emergency service auto repair through a mobile application.
II. Indirect Competitors
 PIDOY’s Motorcycle and Auto Repair Shop
26
 EM Auto Mechanic Shop
 DAC Garage
 Queens Auto Workz
 MC Auto Electrical Shop
 Lin Auto Care Center
 Bruzko Autoworkz
3.4.2 SWOT Analysis
Table 2.13
Strengths, Weaknesses, Opportunities and Threats of the Business
__________________________________________________________________
STRENGTHS WEAKNESSES
__________________________________________________________________
Good Location Many competitors in the area
Easy Access
Quality of Service
Highly skilled workforce
OPPORTUNITIES THREATS
Expansion of market reach New competitors will offer or establish

Expansion of services offered the same service
Newly introduction of service type
No direct competitors in the area
___________________________________________________________________
I. Strengths
o Good Location
27
The target location of the company is at Tagaytay City, Cavite where there
is high volume of car density and heavy traffic which can lead to potential
demand.
o Easy Access
The service provided by the company can be easily accessed due to it
being a mobile application.
o Quality of Service
Customer satisfaction through high quality service is the aim of the
company.
o Highly skilled workforce
In order to achieve high quality service, the company will hire highly
skilled employees with proper training and learning programs.
II. Weakness
o Many competitors in the area
There are many competitors in Tagaytay City so the company should
introduce a proper marketing campaign for it to be recognized and have profit.
III. Opportunities
28
o Expansion of market reach
The company may expand its target market. Some of the drivers and riders
that pass through Tagaytay City came from nearby places in Cavite which the
company can expand its services to.
o Expansion of services offered
The company may expand its services, since there are many categories
under car repair and maintenance like car washing and air conditioning.
o Newly introduction of service type
Since the type of service is new in the area, potential customers can be
curious and try the service.
IV. Threats
o New competitors will offer or establish the same service
There is a possibility that there will be new competitors to enter the scene
and introduce the same service which could lead to the possibility that the
customers will not patronize the company.
3.5 Supply Analysis
3.5.1 Supply Determinants
Supply Analysis is an analysis done to understand the supply trends and
response to changing market. It helps the manufacturers and companies to
understand the impact of different variables on the business.
29
Table 2.14
Historical Supply
Year Supply
2015 500,000
2016 648,000
2017 796,000
2018 944,000
2019 1,092,000
2020 1,240,000
Table 2.14 this table shows the historical supply. This includes the indirect
competitors that offers the same services within Tagaytay City.
3.5.2 Supply Projection
Table 2.15
Supply Forecast
Year Supply
2021 1,388,000
2022 1,536,000
2023 1,684,000
2024 1,832,000
2025 1.980,000
The table 2.15 shows the supply projection in the next five years. The table also
shows that the supply is steadily increasing in the five year span
3.6 Gap Analysis
Gap Analysis involves determining and improving the difference between
business requirements and current capabilities.
30
3.6.1 Demand and Supply Gap
Table 2.16
Demand and Supply Projection
YEAR FORECASTED FORECASTED GAP ANALYSIS
DEMAND SUPPLY (Forecasted Demand/Supply)
2021 1,590.514 1,388,000 202,514

2022 1,882,794 1,536,000 346,794
2023 2,174,984 1,684,000 490,984
2024 2,467,219 1,832,000 635,219
2025 2,759,454 1,980,000 779,454
________________________________________________________________________
Table 2.16 presents that there is 21.4% gap between the demand and supply.
3.7 Channel Analysis
Channel Analysis is a useful tool for management and is crucial to creating an effective
and well-planned marketing strategy. It consists of people, organizations, and activities
necessary to transfer the ownership of goods from the point of production to the point of
consumption. It is the way products get to the end user or consumer.
31
ACT! Auto
Repair Shop
Residents Tourists
Figure 2.14 shows the channel analysis for the auto repair shop wherein the services
will be provided directly to the market composed of the residents and tourists.
4.0 MARKET SHARE
Market share refers to a company's portion of sales within the entire market in which it
operates. It is the percentage of the market for a product or service that a company supplies.
Table 2.17
Market Share
Year Forecasted Forecasted Unsatisfie Capacity Market
Demand Supply d (Annual Share
(Annual Market Sales)
Sales) Share
32
2021 60,103,592 1,388,000 90% 4,536,000 7.55%
2022 61,093,176 1,536,000 90% 4,672,080 7.65%
2023 62,086,656 1,684,000 90% 4,812,242 7.75%
2024 63,076,240 1,832,000 90% 5,004,732 7.93%
2025 64,067,772 1,980,000 90% 5,204,921 8.12%
Table 2.17 shows that the ACT! Auto Repair Shop has a market share of 7.55% for the
year 2021. The forecasted demand was multiplied by the average range of price PHP 1,948 .00
to get the forecasted demand annual service sales. Market share is calculated by dividing
capacity annual service sales by the forecasted demand annual service sales.
5.0 MARKETING STRATEGY
5.1 Service Strategy
Encourage Engagement on Social Media
It can be related to anything about vehicles, driving, community, and shop such
as:
a. driver safety tips;
b. car maintenance advice;
c. traveling tips;
d. traffic news;
e. photos of staff and location;
f. customer satisfaction stories;
g. info about local events;
33
h. support for community initiatives; and
i. offer specials and coupons for likes and shares.
Create a Referral Rewards Program
Current customers and new customers will receive benefits such as small
freebies, service discounts, and contest entries.
Implement a Services Subscription Plan
Create a subscription service plan that allows customers to spread their
payments out over time in return for discounted scheduled services.
Educate customers through informative in-store content.
One way to do that is by providing informative content that alleviates
customer’s fears, concerns, and confusion. Explains how services are performed
and why these are necessary and shares facts and evidences about the value of
products and services.
Post Before and After Photos
It can also show customers that by sharing content that proves the value of
the work, the shop can gain trust. Digital signage is another great way to
highlight before and after photos of the work team has completed.
5.2 Pricing Strategy
Penetration pricing - setting a low price to enter a competitive market and raising
it later. It creates customer base quickly due to low price of product because all other
factors take backseat when price offered by the company for a product is low as majority
of customers are price conscious.
5.3 Promotions Strategy
34
Send Regular Emails
Use Wi-Fi Marketing or a written form to collect email addresses from
customers and launch an email newsletter.
Send Personalized Service Reminders and Deals via Email or Text
Send targeted, personalized reminders and deals to customers through
either email or SMS.
Encourage Customers to Write Reviews
Another way to leverage user-generated content to connect with more
customers is by collecting and posting reviews about the business.
Create a Follow-Up Program
Another way to stay in touch with customers is following up with the
customers after visiting the location.
Use In-Store Digital Signage to Promote Products and Services.
Digital screens allow to customize waiting area television programming,
quickly update promotions, deliver animated and video advertisements, and use
programming as a silent, continuous salesperson.
5.4 Location Strategy
Consider the Importance of the Location
The customers have to find the specific location of the business in order to
take advantage of the services provided by insurance company. Hence, it might be
able to save some money by not targeting the most premium business locations.
Make It Convenient for Customers
35
In addition to simply choosing a location that is easy to find, auto repair
businesses should also consider how many customers need to drop their vehicles
off and then have options for walking to restaurants or other transportation
options.
Use Signage to Attract People
It is best to choose a location that’s right on a main road so that people driving by
can see it and know exactly where are when customer need automotive services.
6.0 CONCLUSION
the customers through their smart phones. Revenues are generated from replacement part and
mechanic labor sale. The services can be in more detail, such as emergency or scheduled
maintenance, brake repair, transmission, wheel alignments, rims and tires and also
comprehensive engine repair. The researchers conducted a survey among 365 respondents
from different motorists that travel within Tagaytay City and gathered data to support the
study. Results revealed that 64.4 % male and 35.6 % female respondents travelled within
Tagaytay City. In terms of age, 39.5 % was 22-26 years old; 23.6 % was 27-31 years old; 12.1
% was 32-36 years old; 11 % was 17-21 years old; and others were below 10%, respectively.
For educational attainment, 65.2 % of the respondents were college graduate; 24.1 % was
undergraduate; 9.6 % of the respondents were high school graduate; and below 5 % was
elementary graduate. In terms of employment status, 77 % of the respondents were employed
while 23 % of the respondents were unemployed. The monthly income of the respondents was
shown as, 27.4 % earned Php 20,000 – 30,000; 25.2 % earned Php 10,000 – 20,000; 23. 8 %
earned Php 0 – 10,000; 10.7 % earned Php 50,000 and above; and below 20 % of the earned
Php 30,000 – 50,000. With regard to the purpose for visiting Tagaytay City, data revealed that
36
67.7 % of the respondents were tourists, 16.2 % of the respondents visited the place for work-
related concerns; 9.6 % of the respondents were residents; and below 10 % of the respondents
visited relative. In terms of vehicles used of the respondents, it was found out that 43 % used
SUV/Sedan; 32.1 % used motorcycle; 16.4 % used 4x4/Van; 7.4 % used bicycle; and below
5 % used truck/bus. Moreover, 56.2 % of the respondents said they sometimes visited the city,
while 43.8 % stated that they always come to the place. When it comes to experience, results
showed that 86 % of the respondent’s experienced problems during trips, and 14 % of the
respondents did not experience problems during trip. When they had problems in their trips,
58.6 % of the respondents called for local repair shop while 33.2 % fixed them; and below 10
% did other things. With regard to the common types of problems encountered during their
trips, results showed that 48.5 % of the respondents had flat tires; 17.3 % experienced engine
overheat; 16.7 % had an empty fuel; 8.2 % had a dead battery; 6.6 % experienced a failed
starter; and below 5 % had other related problems. Data on difficulties experienced by the
respondents during their trips revealed that 87.9 % suffered difficulties in searching for help
while 12.1 % did not experience any difficulty in searching for help. Lastly, 97 % of the
respondents said that the problem can be solved by using mobile application while 3 % stated
that the problem cannot be solved by using mobile application.
The researchers determined that there is 21.4% gap between the demand and supply for
the services. ACT! Auto Repair Shop has no direct competitors that provide the same services.
The researchers also determined that there is a market share of 7.55% to 8.12% for the
year 2021 to 2025.
37
Through this, the proponents sought the marketability of the proposed business to enter
the market. The gross profit of the company will be derived from deducting all the costs. With
these findings, the researchers concluded that the market share for the study is feasible enough.
38
CHAPTER III
TECHNICAL STUDY
1. INTRODUCTION
The Technical Aspects is the discussion of basic and operation flow of the project. The
technical aspect is one of the essentials of this study because this factor responds to the
technicalities and basic structure of the proposed study. This includes the equipment, materials,
structure plan and also the source of the supplies use in the proposed project. Business plans,
promotion strategies, utilities, facilities, layout design and location include in this chapter.
It discusses how the products are to be produced, when these products are to be
produced, how much will it cost to produce the products, where to produce products and what
technology to be used. Technical aspects help the owner to determine the technical requirements
of business.
A. Objectives
a.1 General Objective
The main objective of this aspect is to determine the technical feasibility of
Vulcanizing and Repair Shop’ Mobile Application.
a.2 Specific Objective
 to determine the services offered and the service process of company
 to identify the list of materials, machines, tools and equipment needed for
the operation of the business
 to identify the sources of supplies of the materials and equipment
 to define the facility plan, plant site and requirements in establishing the
business
39
 to determine the capacity and schedule of the business
B. Scope and Limitation
The research focuses on determining the technicalities needed in operating the Auto
Repair shop wherein the service information, service process, services offered, raw
materials, suppliers, machineries and equipment, service capacity, production plan,
maintenance schedule, manpower, facilities plan, and waste management are included.
C. Methodology
To gather the needed information for the technicalities of the study, the researchers
used the following methods:
Research
 The researchers gathered information about the number of machineries and equipment
through websites and articles using internet.
Survey
 The researchers gathered information on the number of materials from different
electronics shops and hardware near the location of the establishment.
Benchmark
 The researchers used benchmarking as a technique to gather information of machine
and equipment that will be used for the shop.
D. Assumptions
The researchers assumed that:
 The location of the company is the ideal site to be established.
40
 The information and details of machines, tools, supplies and equipment from suppliers
is accurate
 The capacity of the service was based on the operating time
 Well-maintained machines and equipment run more efficiently
2. PRELIMINARY INFORMATION REQUIREMENTS
A. Service Information
ACT! Auto Repair Shop aims to provide professional auto repair, maintenance
services and other auto repair related services that will assist businesses, individuals,
households and non-profit organizations who own automobiles in ensuring that their
automobiles are always in good shape.
B. Market Information
b.1 Market Segmentation
Market segmentation is a business practice relying on research that leads
the direction of the researchers on how the business divides the target market into
smaller, more manageable groups based on common ground shares.
Table 3.1
VARIABLE DESCRIPTION
______________________________________________________________________
Country Philippines
Region IV- A (CALABARAZON)
City Tagaytay City
Area Type Rural
______________________________________________________________________
41
Geographical Segmentation illustrates the common strategy when serving customers in
a particular area, or when the broad target audience has different preferences based on location.
It involves grouping potential customers by country, region or city. The researchers selected
the location of the business with the use of Factor Rating.
Table 3.2
Demographical Segmentation
VARIABLES DESCRIPTION
_______________________________________________________________________
Age 17 years old and above

Gender Both gender (Male and Female)
Employment Status Nothing in particular
Monthly Income Nothing in particular
Type of Vehicle Nothing in particular
Educational Attainment Nothing in particular
_______________________________________________________________________
Demographical Segmentation illustrates the geographical variables and its descriptions.
The target markets of the study are the residence and motorists within Tagaytay City, Cavite.
Psychographic Segmentation
The ACT! Auto repair shop, a center for highly thriving and profitable easy to setup
auto services within Tagaytay City. It also offers a wide range of services. It is ultimately the
goal of the company to offer a one-stop facility for all auto servicing needs, including brakes,
transmission, wheel alignment, etc.
b.2 Demand-Supply
Factor-rating systems are probably one of the most widely used location selection
techniques, because it can combine diverse issues into an easy-to-understand format.
Generally, a factor rating system is a weighted list of factors with the greatest relevancy to the
42
area and a range of values for each factor. This method involves qualitative and quantitative
inputs, and evaluates alternatives based on comparison after establishing a composite value for
each alternative.
The researchers determine the relevant and important factors (proximity to markets,
proximity to raw materials, rent cost, water supply, energy, hazardous waste, and labor supply)
for the location of the business and assigned a weight to each factor, with all the weights
totaling 1.00. The researchers determined common scale for all factors, usually 0 to 100 and
score each alternative (Location 1, Location 2, Location 3). Each score factor was multiplied
by the weight factor and add up the scores for each location alternative. The location with the
highest score was considered the best option.
The table below shows the location factors, factor rating weight and scores for the three
potential locations of the business. Location 1 is at 154 Tagaytay – Nasugbu Highway,
Tagaytay, Cavite, Philippines, Location 2 is at 1000 Luksuhin – Mangas Road, Alfonso,
Cavite, Philippines and Location 3 is at 18 Madison St. Alfonso, Cavite, Philippines.
Table 3.3
Factor Rating
LOCATIO WEIGH LOCATION 1 LOCATION 2 LOCATION 3
N T
FACTOR RATIN W* RATIN W* W*
G R G R R
RATIN
G
Proximity 0.3 60 18 80 24 70 21
to market
Proximity 0.2 40 8 60 12 50 10
of raw
materials
Rental 0.1 70 7 60 6 65 6.5
43
Cost
Water 0.1 30 3 30 3 30 3
supply
Energy 0.1 30 3 30 3 40 4
Hazardous 0.1 30 3 30 3 30 3
wastes
Labor 0.1 40 4 40 4 40 4
supply
TOTAL 1 46 55 51
Table 3.3 shows the way of choosing a location of the company by using factor rating.
3. SERVICE PROCESS
A. Service Rationale
ACT! Auto Repair Shop offers a wide range of services. It is ultimately the goal of
the company to offer a one-stop facility for all auto servicing needs, including brakes,
transmission, wheel alignment, and the likes. In this way, the company can offer greater
perceived value for the customer than many other shops which specialize in certain areas.
The industry is highly competitive with suppliers having a great deal of power in
setting and negotiating the prices of their products and services to repair shops. In
addition, because the customers see the service as undifferentiated with little value
separation between competitors, buyer power is also high.
B. Service Process: Flow Chart and Activity
The service process refers to how a service is provided. It involves procedures, task,
activities and routines by which a service is delivered to a customer.
The aim of the business is to provide an accessible and convenient auto repair shop for
the motorists in the City of Tagaytay.
44
Figure 3.1 Service Process
CUSTOMER CALL
OFFICER-IN-CHARGE
RESPONSE
NO
CUSTOMER APPROVAL END
YES
 Vulcanizing
SERVICE OFFER  Battery Charging
 Radiator Cleaning
 Hose
Replacement
REPAIR  Brake Pad
Replacement
 Alternator
COMPUTATION OF Replacement
SERVICE  Alternator Repair
 Overhaul Starter
 Battery
Replacement
END
Figure 3.1 service process of ACT! Auto Repair Shop
The above figure presents the service process of the ACT! Auto Repair Shop.
45
Services Offered
 Vulcanizing
This the process of treating crude or synthetic rubber or similar plastic
material chemically to give it useful properties. Patching a tire with a radial
patch can take about 20 to 30 minutes while installing a plug takes only a few
minutes and usually can be done while the tire is still on the car.
 Battery Charging
The conversion of energy from chemical to electrical is known as
the charging. When the electric power changes into chemical energy, it is
known as discharging of the battery. During the charging process, the current
passes inside the battery because of chemical changes. Charging a regular car
battery with a typical charge amp of around 4-8 amperes will take about 10-24
hours to charge it fully. To boost your battery enough to be able to start the
engine, it would take around 2-4 hours.
 Radiator Cleaning
A coolant flush, also referred to as a cooling system service or radiator
flush, is the process of adding a cleaner to the cooling system to eliminate
sediment or rust. The system is then flushed thoroughly while new antifreeze
and a conditioner to protect against corrosion are added. The flush takes less
than 10 minutes to dissolve the thick deposits in the engine, after which it will
turn muddy.
46
 Hose Replacement
There are different hoses: Molded hoses are not interchangeable with any
other type, or with any other vehicle; Universal Hoses are straight rubber hoses
that can be used in some applications; Branched Molded Hoses some of it are
actually branched; and Flex Hoses: Flex hose is a shortcut. It’s a type of hose
built to offer some flexibility and make a generic, one-size-fits-all replacement. In
fact, it can usually have radiator hoses replaced in about 15 minutes or so
as long as to take the car to a reputable mechanic. It's one more reason why
it makes so much sense to get it done when the radiator hoses go bad.
 Brake Pad Replacement
Brake pads convert the kinetic energy of the vehicle to thermal energy
through friction. The brake pads must usually be replaced regularly to
prevent brake fade. Most brake pads are equipped with a method of alerting the
driver when this needs to be done. The type of car brake service you need is the
best indicator of time requirements. Simple jobs like a brake pad
replacement can take anywhere from 15 minutes to an hour. The time it takes for
a repair also depends on which type of vehicle you have and what parts the shop
has on hand.
 Alternator Replacement
Replacing an electric generator for producing alternating current. In
general, it will take about 2 hours to replace an alternator, though this could vary
47
somewhat depending on the knowledge of car mechanics. Take the car into a shop
in order to have the alternator replaced; timing may vary somewhat, and it may
have to leave the car for the day.
 Alternator Repair
Bearing failure is one of the most common causes of alternator failure.
This occurs when one or many components within the alternator breaks due to
excess heat or contamination. When this happens, the alternator does not spin and
no longer generates a charge for the battery. It will take about one to two hours to
repair an alternator.
 Overhaul Starter
In order to perform an overhaul, the first operation is to remove the engine
from the chassis, in order to facilitate the disassembly of the starter motor. Each
type of engine has its own attachment, but usually removing just a few screws
allows you to free the starter motor. It will take between two and four hours for
the replacement.
 Battery Replacement
Battery for use in place of an existing battery, giving the same or similar
operating and performance characteristics. This service usually takes about 15
minutes.
48
4. RAW MATERIALS
A. Raw Materials Description
Table 3.4
Description of the Materials
RAW MATERIAL DESCRIPTION

____________________________________________________________________________
Radiator Hose The radiator hose is an essential part of the

cooling system that manages the flow of
coolant from the water pump to the heater.
The radiator hose is a rubber device that
removes excess heat from the coolant before it
goes back to the engine to repeat the cycle
again.
Brake Pads Brake pads are a component of disc brakes

used in automotive and other applications.
Brake pads are composed of steel backing
plates with friction material bound to the
surface that faces the disc brake rotor.
An automotive battery is a rechargeable

Battery: NS40 battery that is used to start a motor vehicle. Its
2SMF
main purpose is to provide an electric current
N70/SM3
to the electricity powered starting motor,
N560
which in turn starts the chemically powered
MOTOR 5L
internal combustion engine that actually
propels the vehicle
49
______________________________________________________________________________
Table 3.4 Description of the Materials…cont’d
RAW MATERIAL DESCRIPTION

____________________________________________________________________________
Gas: Diesel Gasoline car typically uses a spark-ignited internal

Unleaded combustion engine, rather than the compression-
Special ignited systems used in diesel vehicles. In a spark-
ignited system, the fuel is injected into the
combustion chamber and combined with air. The air
or fuel mixture is ignited by a spark from the spark
plug.
Tire Glue
Tire glue is an adhesive substance used for sticking
usually use in tire.
B. Bill of Raw Materials

Table 3.5
Amount of the Raw Materials
RAW MATERIAL AMOUNT

______________________________________________________________________________
Radiator Hose Php 2,800.00
Brake Pads Php 1,600.00
Battery: NS40 Php 2,000.00
2SMF Php 5,000.00
N70/SM3 Php 4,500.00
N560 Php 2,500.00
MOTOR 5L Php 500.00
Gas: Diesel Php 37.25 (per liter)
Unleaded Php 44.50 (per liter)
Special Php 45.00 (per liter)
*assume Php 22,815 per year
50
Tire Glue Php 90.00
TOTAL Php 41, 805.00

Note: dd – Not fixed amount
C. Raw Materials Suppliers

Stores that sell tools and other items used in automotive parts, equipment, machines, and
others.
Figure 3.2
Autopards Aftermart
Autopards Aftermart is located in Buho Silang Cavite, 4118 Silang, Philippines.
Figure 3.3
Oreo Auto Supply
Oreo Auto Supply located in Banawe St, Quezon City, 1113 Metro Manila,
Philippines.
51
Figure 3.4 New Banawe Auto Supply
New Banawe Auto Supply located in 22 Banawe St, Quezon City, 1113 Metro
Manila, Philippines.
Figure 3.5 Shopee logo
Shopee is a social marketplace that provides an accessible shopping where
everyone can browse and sell different products anytime, whether it is for
clothing, school stuffs, furniture, equipment, components and parts.
52
Figure 3.6 Lazada logo
Lazada is a social marketplace just like Shopee that also provides an
accessible shopping of different kinds of product for everyone through the use of
internet.
Figure 3.7
MyBenta.com is a comprehensive classified ad listing site in the
Philippines. It was born at a time when Filipino sellers hope for a free and easy
way to post their ads and get their orders and answer queries online. It was also a
time when online shoppers want to have a choice of quality products at the best
price. It also aims to provide a fair online marketplace for Filipino buyers and
sellers.
c.1Gas Supplier
53
Figure 3.8 Petron logo
Petron Corporation is the largest oil refining and marketing company in
the Philippines, supplying more than a third of the country's oil requirements.
D. Raw Materials Supplier Evaluation
Table 3.6
Raw Materials Supplier’s Evaluation
SUPPLIERS
Autopards Oreo Auto Supply New Banawe
Aftermart Buho Banawe St. Quezon Auto Supply 22
RAW MATERIAL 4118 Silang, City, 1113 Metro Banawe St.
Cavite Manila Quezon City, 111
Metro Manila
Radiator Hose Php 3,100.00 Php 2,800.00 Php 3,000.00
Brake Pads Php 1,790.00 Php 1,700.00 Php 1,600.00

Battery: NS40 Php 2,300.00 Php 2,000.00 Php 2,250.00
2SMF Php 5,500.00 Php 5,000.00 Php 5,200.00
N70/SM3 Php 4,800.00 Php 4,700.00 Php 4,500.00
N560 Php 2,750.00 Php 2,600.00 Php 2,500.00
MOTOR 5L Php 500.00 Php 550.00 Php 540.00
Tire Glue Php 100.00 Php 100.00 Php 90.00
Note: dd – Cheaper amount of raw materials
54
5. MACHINES, EQUIPMENT, SUPPLIES
A. Machine, Equipment and Supplies
Machine and equipment that the ACT! Auto Repair Shop need to get shop ready
for business.
Table 3.7
Amount and Specifications of the Machines
MACHINE SPECIFICATIONS QUANTITY AMOUNT

Air Compressor Turbo, DC Power, 230 V 1800
W, 37 kg, 50 L, 8 bars (115
1 Php 3,890.00
psi)
55
Battery charger Battery Charger Portable
12//24 V DFC30
1 Php 2,670.00
Maximum Output: 30 A
Frequency: 50/60 Hz
Voltage: 12 V/24 V
Welding Machine Material: Metal

Weight: 36.4 pounds
1 Php 5,000.00
Dimensions: 13.4 x 7.2 x 11.4
inches
TOTAL Php 11,560.00
Table 3.8
Amount and Specifications of the Equipment
EQUIPMENT SPECIFICATIONS QUANTITY AMOUNT

Jack stand 3 ton heavy duty hydraulic
floor Jack 3 ton, 410 mm
1 Php 1,680.00
680x285x185 mm
Oil drain/ oil caddy 30-gallon gas caddy/oil drain

tank automotive fuel transfer
1 Php 5,600.00
pump portable
56
Strut compressor Jaw opening: 4" - 10"
Size: 32*20*33 cm
1 Php 3,360.00
Type: clamp
Transmission Jack 0.5 – ton high position

telescopic truck hydraulic
1 Php 4,810.00
transmission Jack
Material: steel
Vehicle Lift Type: double cylinder

hydraulic lift
1 Php 38,470.00
Lifting Capacity:
3500kg
Toolbox Items:
hammer
flat screwdriver
Phillips screwdriver
tape measure
adjustable
crescent wrench
1 Php 7,000.00
vice grip pliers
electric drill
high-quality level
utility knife and blades
try square
flashlight
57
gloves
goggles
earplugs
duct tape
high-quality scissor
handsaw
sandpaper
clamps
nose pliers
Allen keys
aviation snips
Computer Core i3 3rd Gen, 4GB RAM,

320 HDD storage, 19 inches
1 Php 7,800.00
LCD monitor
Price: Php 7,800.00
Printer Mobile device printing

networking wireless
ENERGY STAR Certified Info 1 Php 5,000.00
Printer Type All in One, Fax
ISO Color Print Speed info
4.4 pages per minute
ISO Mono Print Speed
Info8.8 pages per minute
TOTAL Php 73,720.00
58
Table 3.9
Amount and Specifications of the Supplies
SUPPLY SPECIFICATION QUANTITY AMOUNT

Bond Paper Size: letter (8 x 11)/ legal
(8.5 x 14)
6 rims Php 870.00
Substance: 20/70 gsm
1 ream: 500 sheets
Price: Php 145.00 per rim
Ballpen Panda ballpen

12 pcs/box
3 Php 204.00
Price: Php 68.00 per box
Table Material: laminated wood

Color: Gray
1 Php 3,650.00
Dimension: L45.75″ x
W22.75″ x H29.75″
Office Chair Thick Ergo dynamic cushion,

Black high quality Korean
mesh upholstery 1 Php 2,499.00
Weight capacity: 100 kg, Tilt
Lock mechanism, 300 mm
chromed steel base
Bench The lifetime 5-feet fold-in half

bench is constructed of high –
3 Php 5,967.00
59
density polyethylene and
powder – coated steel
Price: Php 1,989.00
Light Bulb led bulb * 270’ beam angle *

daylight * 88 % energy saving
14 Php 2,240.00
* 15,000 life hours
Price: Php 160.00
Fluorescent Lamp 5 watts fluorescent tubular

medium bi-pin lamp
15 Php 13,500
Price: Php 900.00
Broom nylon hard-bristle broom w/

handle
Price: Php 70.00 2 Php 140.00
Dustpan plastic dustpan 2 Php 70.00

Price: Php 35.00
Fire Extinguisher chemical fire extinguisher

Capacity: 10 lbs.
2 Php 3,000.00
Size: 4.54 kg
60
Price: Php 1,500.00
First Aid Kit gauze bandage 4x10 yards,

elastic bandage 3x5,
2 Php 760.00
burn ointment, isopropyl
alcohol, ammonia bottle,
povidone iodine, hand
sanitizer, gauze pad 2x2,
adhesive plaster, whistle
Price: Php 380.00
Time Card Card Size: 86 mm x 131 mm
50 pcs/pack
2 Php 100.00
Price: Php 50.00 per pack
Record Book Size: regular (11.25 x 7 inches)

Price: Php 65.00 per book
2 Php 130.00
Floor Map microfiber spin mop and

bucket floor cleaning 360⁰
2 Php 1,000.00
rotating head
Dimension: 21 cm x 46 cm x
26 cm
Price: Php 500.00
Dust Feather feather duster
61
Size: approx. 50 cm
1 Php 80.00
length/19.69 inch
Stapler HBW office stapler with staple

3 Php 261.00
remover
Model: 9949 – 1
Staples HBW office staples
No. 24/6 1000 staples/box
5 Php 75.00
Price: Php 15.00 per box
Garbage Bag Size: small (50x60 cm)

Color: Black
5 Php 625.00
1 Roll: 50 pcs.
Price: Php 125.00 per roll
TOTAL Php 35,171.00
Table 3.10
Total Amount for the Equipment, Machines and Supplies
62
a.1 Machines and Equipment Suppliers
Companies that manufacture goods that are used in the production process
of an automobile or become part of an automobile, such that supply goods
directly or indirectly to an automobile manufacturer and synonymous. The role of
a supplier in a business is to provide high-quality products from a manufacturer at
a good price to a distributor or service establishments.
The researchers searched for the possible suppliers of the equipment and
machines that will be used in auto repair shop by simply visiting the hardware
stores personally and made an inquiry on the existing amount of equipment and
machines.
Stores that sell tools and other items used in automotive parts, equipment, machines and
the likes
Figure 3.9
Autopards Aftermart
Autopards Aftermart is located in Buho Silang Cavite, 4118 Silang, Philippines.
63
Figure 3.10 Oreo Auto Supply
Oreo Auto Supply located in Banawe St, Quezon City, 1113 Metro Manila,
Philippines.
Figure 3.11 New
Banawe Auto Supply
New Banawe Auto Supply located in 22 Banawe St, Quezon City, 1113 Metro
Manila, Philippines.
Figure 3.12 Shopee logo
Shopee is a social marketplace that provides an accessible shopping where
everyone can browse and sell different products anytime, whether it is for
clothing, school stuffs, furniture, equipment, components and parts.
64
Figure 3.13 Lazada logo
Lazada is a social marketplace just like Shopee that also provides an
accessible shopping of different kinds of product for everyone through the use of
internet.
Figure 3.14
MyBenta.com is a comprehensive classified ad listing site in the
Philippines. It was born at a time when Filipino sellers hope for a free and easy
way to post their ads, and get their orders and answer queries online. It was also a
65
time when online shoppers want to have a choice of quality products at the best
price. Aim to provide a fair online marketplace for Filipino buyers and sellers.
a.2 Machines, Supplies and Equipment Supplier Evaluation

Table 3.11
Machines Supplier’s Evaluation
SUPPLIERS
MACHINE 4118 Silang, City, 1113 Metro Banawe St.
Metro Manila
Air compressor Php 4,000.00 Php 3,950.00 Php 3,890.00
Battery charger Php 3,000.00 Php 2,700.00 Php 2,670.00

Welding machine Php 5,700.00 Php 5,000.00 Php 5,250.00
Table 3.12
Equipment Supplier’s Evaluation
SUPPLIERS
EQUIPMENT 4118 Silang, City, 1113 Metro Banawe St.
Metro Manila
Jack stand Php 1,800.00 Php 1,680.00 Php 1,700.00
Oil drain/Oil caddy None Php 5,600.00 Php 5,600.00
Strut compressor Php 3,800.00 Php 3,700.00 Php 3,360.00
Transmission Jack Php 4,950.00 Php 4,850.00 Php 4,810.00
Vehicle lift None Php 38,470.00 Php 39,000.00
Toolbox Php 8,000.00 Php 7,600.00 Php 7,000.00
SUPPLIERS
EQUIPMENT Lazada Shopee Sulit.com
Computer Php 8,000.00 Php 7,800.00 Php 8,000.00
Printer Php 6,000.00 Php 5,500.00 Php 5000.00
Table 3.13
Supplies Supplier’s Evaluation
66
SUPPLIERS
Lazada Shopee Sulit.com
SUPPLY
Bond paper Php 149.00 Php 145.00 Php 155.00
Ballpen Php 69.00 Php 68.00 None
Table Php 3,799.00 Php 3,650.00 Php 3,700.00
Office chair Php 2,500.00 Php 2,499.00 Php 2,600.00
Bench Php 1,999.00 Php 1,999.00 Php 1,989.00
Light bulb Php 160.00 Php 170.00 Php 185.00
Fluorescent lamp Php 949.00 Php 900.00 Php 950.00
Broom Php 140.00 Php 135.00 Php 139.00
Dustpan Php 40.00 Php 35.00 None
Fire extinguisher Php 1,500.00 Php 1,599.00 Php 1,600.00
First aid kit Php 380.00 Php 390.00 Php 395.00
Timecard Php 55.00 Php 50.00 None
Record book Php 70.00 Php 65.00 Php 70.00
Floor map Php 550.00 Php 500.00 Php 570.00
Dust feather Php 89.00 Php 80.00 Php 85.00
Stapler Php 270.00 Php 261.00 Php 265.00
Staples Php 18.00 Php 15.00 None
Garbage bag Php 136.00 Php 130.00 Php 125.00
6. CAPACITY PLAN
A. System Capacity
Capacity planning is an integral aspect to business that no service organization should
be without. It helps structure growth to ensure the business maintains a competitive edge in a
marketplace that’s changing constantly to meet demand.
For service organizations, capacity has a measurable impact. It is the number of
services they are able to perform, or people they are able to provide over a specific period of
time.
a.1 Annual, Monthly, Daily Capacity (per process)

Table 3.14
Daily Capacity per Process of ACT! Auto Repair Shop
SERVICE NUMBER OF MINUTES OF CAPACITY (PER

MINUTES PER SERVICE TO VEHICLE)
DAY ACCOMPLISH
67
Vulcanizing 1,440 25 57
Battery charging 1,440 1,020 2
Radiator cleaning 1,440 10 144
Hose replacement 1,440 15 96
Brake pad 1,440 40 36
replacement
Alternator 1,440 120 12
Replacement
Alternator repair 1,440 90 16
Overhaul starter 1,440 180 8
Battery replacement 1,440 15 96
Table 3.15
Monthly Capacity per Process of ACT! Auto Repair Shop

MONTH ACCOMPLISH
Vulcanizing 43,800 25 1,752
Radiator cleaning 43,800 10 4,380
Hose replacement 43,800 15 2,920
Brake pad 43,800 40 1,095
replacement
Alternator 43,800 120 365
Replacement
Alternator repair 43,800 90 487
Overhaul starter 43,800 180 244
Battery 43,800 15 2,920
replacement
Table 3.16
Annually Capacity per Process of ACT! Auto Repair Shop

YEAR ACCOMPLISH
Vulcanizing 525,600 25 21,024
Radiator cleaning 525,600 10 52,560
Hose replacement 525,600 15 35,040
Brake pad 525,600 40 13,140
Replacement
68
Alternator 525,600 120 4,380
replacement
Alternator repair 525,600 90 5,840
Overhaul starter 525,600 180 2,920
Battery 525,600 15 35,040
replacement
B. Machine Capacity
Table 3.17
Air Compressor Utilization
Air Compressor
Mon Tues Wed Thurs Fri Sat Sun
Available time 1,440 1,440 1,440 1,440 1,440 1,440 1,440
(mins)
Set up time (mins) 15 15 15 15 15 15 15
Used time (mins) 1,160 1,160 1,160 1,160 1,160 1,160 1,160
Unused time 265 265 265 265 265 265 265
(mins)
Machine Utilization 80.56% 80.56% 80.56% 80.56% 80.56% 80.56% 80.56%
(mins)
Table 3.17 shows that the air compressor utilization is 80.56%; wherein the setup time of
15 minutes and used time of 1,160 minutes in a working day.
Table 3.18
Battery Charger Utilization
Battery Charger
Available time 1,440 1,440 1,440 1,440 1,440 1,440 1,440
(mins)
Set up time (mins) 10 10 10 10 10 10 10
Used time (mins) 1,020 1,020 1,020 1,020 1,020 1,020 1,020
Unused time 410 410 410 410 410 410 410
(mins)
69
(mins)
Table 3.18 shows that the battery charger utilization is 70.82%; wherein the setup time
of 10 minutes and used time of 1,020 minutes in a working day.
Table 3.19
Welding Machine Utilization
Welding Machine
Available time 1,440 1,440 1,440 1,440 1,440 1,440 1,440
(mins)
Set up time (mins) 10 10 10 10 10 10 10
Used time (mins) 1,080 1,080 1,080 1,080 1,080 1,080 1,080
Unused time 350 350 350 350 350 350 350
(mins)
(mins)
Table 3.19 shows that the welding machine utilization is 75.00%; wherein the setup
time of 10 minutes and used time of 1,080 minutes in a working day
7. SERVICE PLAN
A. Service Schedule
Since the mission of ACT! Auto Repair Shop is to response for emergency call, the shop
is open for 24-hours. At 24- hour auto servicing, the company can offer its best to the
customers. It handles every service: maintenance, tires and repairs with the best parts, prices
and people around. With this, the company believes that the customers will notice the
establishment.
Table 3.17
70
Service Schedule
Day Time
Monday 24 Hours
Tuesday 24 Hours
Wednesday 24 Hours
Thursday 24 Hours
Friday 24 Hours
Saturday 24 Hours
Sunday 24 Hours
Holiday 24 Hours
Table 3.17 shows the operation schedule of ACT! Auto Repair Shop is from Monday
to Sunday; the store would be operational 24-hours daily.
8. MAINTENANCE SCHEDULE
Maintenance schedule represents the routine services and or inspections that are to be
performed on a plant item. Each maintenance schedule consists of multiple intervals assigned
with a service or inspection procedure. Maintenance schedule is a useful tool that keeps cost
down and property function and appearance up. This allows work to get done in the most
efficient, economical way.
Since the mission of ACT! Auto Repair Shop is to response for emergency call, the shop
is open for 24-hour. At 24- hour auto servicing, the company can offer its best to the
customers. Company handles every service; maintenance, tires and repairs with the best parts,
71
prices and people around. With this, the company believes that the customers will notice the
establishment.
Scheduled maintenance tasks such as routine inspections help detect minor problems
before developing into system failures. Since ACT! Auto Repair Shop is open from Monday to
Sunday, operating 24-hours, cleaning maintenance would strictly schedule every working day.
A brief downtime can result in significant losses due to halted productivity and routine
maintenance would be scheduled regularly performed in order to make sure each asset
performs as needed. Each of these machines needs to be perfectly calibrated to perform its
function at precisely right moment in exactly the right way.
Table 3.18
Maintenance Schedule of ACT! Auto Repair Shop
Attention Points Interval
1. Check frame equipment components for leaks and As needed
lubricate moving parts
2. Drain the air-compressor tank Daily
3. Check all hoses and fittings for leaks Daily
4. Sweep the floors and empty the wastebaskets Daily
5. Check the mixing machine visually. All the mixing Daily

lids should be turning
6. Check any breathing air masks, hoses and related Daily

parts
7. Hose down the shop walls and floors Weekly
8. Change booth ceiling filter Weekly
9. Update the paint shop computer Monthly
10. Check the air dryers Monthly

11. Hire professional service in electrical safety Monthly
72
12. Pressure washes the entire shop, including the Annually
walls, floors and booth top
13. Calibrate booth thermometers and temperature Annually

controls
9. MANPOWER COMPLEMENT
A. Direct Manpower
Direct Manpower – composed of workers that involved in the hands-on production
of goods and services. Employees that are directly involved in the process of the service
such as people working on a particular area of the service production.
 Mechanic
B. Indirect Manpower
Indirect Manpower (Outsource) – includes workers who do not directly produce
goods or services, but who make their production possible or more efficient.
 Project Manager
 Officer-in-charge
 Marketing Assistant
10. FACILITIES PLAN

A. The Plant Site
Plant location refers to the choice of the region where men, materials, money,
machinery and equipment are brought together for setting up a business or factory. While
taking plant location decision organizations need to consider various factors such as
availability of men, materials, money, machinery and equipment.
ACT! Auto Repair Shop location is 1000 Luksuhin – Mangas Road, Alfonso,
Cavite, Philippines and it is a three hundred (300) square meter.
73
Figure 3.15 location Site of ACT! Auto Repair Shop
B. The Plant Layout
Figure 3.16 ground floor layout of ACT! Auto Repair Shop
Plant layout can be defined as a technique of locating machines, processes and plant services
within the factory so as to achieve the greatest possible output of high quality at the lowest
possible total cost of manufacturing.
74
Figure 3.17 mezzanine floor layout of ACT! Auto Repair Shop
C. Plant Requirements
c.1 Building Contractor
The building contractor plans and coordinates construction activities and
must complete the project within the established time and budget. Contractors are
responsible for the entire construction process and must determine the best
methods to finish the project as specified.
c.2 Building Lighting
The lighting on the ground floor and second floor working area has
twelve (12) 20-watt fluorescent lamps to maintain the visibility of the space and
the light inside and five (5) 8-watt LED bulb for walkway, stairs, main office,
receiving area and comfort room.
75
Figure 3.18 Building Lighting Layout
c.3 Building Entrance and Exit Points
Building entrances and exits are temporary stone-stabilized areas located
at the points of ingress and egress of the vehicles. The purpose of construction
entrances/exits is to provide a stable pathway to keep the mud and sediment off
the public roads.
The entrance and exit points of the shop will be located on the front part
of the store and there will be one fire exit in the building.
c.4 Building Ventilation
Building ventilation is a necessary process for the inhabitants and also for
building due to the following causes.
 To get fresh air by changing the used air which contains less oxygen.
 To drive out bad smell produced due to the heat and humidity and smoke
from the building.
 To prevent the production of bacteria and other fatal germs.
c.5 Parking Lot/Bay
A parking lot is an area that is assigned for parking. Normally, the parking
spaces are marked on the ground with white or yellow lines that form squares that
each fit one car.
The building has an available parking space in front.
c.6 Temperature
76
Temperature control in car servicing and automotive workshop areas is
commonly forgotten as well as those who work in a workshop environment.
Not only is temperature control important for staff safety and comfort
which could improve their efficiency at work and general happiness, but
workshops and the automotive industry in general has a number of hazardous
substances and processes which affect the air quality and can raise the indoor
temperature.
The project manager or owner of the ACT! Auto Repair Shop will try to
maintain the temperature of these areas with uninsulated steel roller doors as the
main entry, is painful when the shutters are working against the workers. With a
better insulated option, not only will the staff be happier and more comfortable,
but also more likely to work efficiently, whilst saving costs in heating/cooling.
c.7 Safety Considerations
Working on vehicles can be a fun, exciting, and rewarding career.
However, repair shop owners and their staff need to ensure the proper safety
precautions and rules are implemented and followed at all times. Safety measures
help protect employees from accidental injuries to themselves, their co-workers,
customers, and the vehicles they are repairing. The following is a list of general
safety tips every repair shop should use to keep everyone safe.
Safety tips:
 Never smoke in or near repair bays or garages. Vehicles contain flammable
and combustible fluids which can easily be set on fire if a hot ash from a cigar
or cigarette were to come into contact with such materials.
77
 Keep work areas clean and organized. Pick up tools and use tool cabinets to
keep walkways clear and free from clutter.
 Never wear loose clothing or clothing that is ripped or torn. To prevent
employees from wearing unacceptable attire, it is recommended to obtain
customized uniforms and work apparel from a qualified uniform service
company.
 Wear protective gear at all times, as appropriate for the repair. Goggles,
gloves, and ear protection should be worn when making certain types of
repairs.
 Make sure fire extinguishers are easily acceptable and appropriate for all
potential fire types. In the event of a fire, extinguishers need to be accessed
quickly and be charged with the right materials to put out the type of fire: gas,
oil, electrical, and so on.
 Always disconnect the battery when working on electrical systems and
near/around electrical wiring. Even when the vehicle is off, there is still the
potential for current to pass through electrical wiring.
 Never place hands, tools, or other objects near the engine while it is running.
The moving parts and components could cause injury to a person or the
vehicle itself.
 Never work underneath a vehicle unless it has been properly supported.
Raising the vehicle off the ground to access the underside requires verifying it
is stable, and that there is no risk of the vehicle falling on top of the mechanic.
78
 Always remove the keys from the ignition switch. Never leave the key in the
ignition switch, as the key can draw an electrical charge from the battery.
Also, avoid unplugging fuses and wiring harnesses while the key is in the on
position. Otherwise, there is a risk of electrical shock or electrical spikes that
may damage electronic parts and wiring.
 Be aware of the vehicle’s temperature before beginning any work. The engine,
manifold, exhaust system, and radiator could be hot and can cause skin burns.
Plus, the radiator coolant is still pressurized.
Some of the hazards faced by those in the automotive environment include:
 Petrol containers and gas cylinders: These are highly flammable substances
and could cause fatality and serious injury if not carefully handled and stored.
 Solvents: It can enter the body when a person breathes in, through skin
contact, or through the mouth from contact with food or fingers.
 Spray paints: Inhaling paint fumes may cause occupational asthma. Long term
exposure can affect the brain, damage the reproductive system and cause
kidney or liver damage. Contact with the skin may cause dermatitis.
 Batteries: contain acid and must be treated with caution.
 Welding equipment: generate hazardous fumes and should be separated from
other workshop activities and from workers who may not be protected by
fume extraction systems, ventilation or appropriate PPE.
 Dust is caused by jobs like sanding, sweeping, grinding and cutting. Small
metal pieces can be generated by cutting and sanding operations, and worker
79
can reduce dust by using machines that are enclosed or fitted with local
exhaust ventilation.
 Carbon Monoxide: Carbon monoxide (CO) is a highly toxic gas produced
when fuels burn incompletely. The typical internal combustion engine used in
most cars and trucks, can produce extremely high concentrations of carbon
monoxide and we cover this in more detail below.
D. Utilities Provider
Figure 3.20 Meralco logo
Electricity is one of the greatest technological innovations of mankind. It is one of the
most important for operating all appliances, lighting and all technology. Manila Electric
Company also known as Meralco is the largest private sector electric distribution utility
company and committed to being the total energy solutions provider of choice. In line with
this, Meralco will be the electricity provider of the service.
Figure 3.21 Tagaytay City Water District logo
80
Tagaytay City Water District is an economically viable and sustainable that can provide
safe and affordable water to all residents of the City of Tagaytay, Cavite. For continuous and
uninterrupted supply of safe and clean water.
Tagaytay City Water District will be the water provider of the service.
E. Shipment: Building Dock

11. WASTE MANAGEMENT
Waste reduction, the combination of waste prevention and recycling efforts, makes good
financial sense. In addition to financial advantages, waste prevention benefits the environment,
benefits society, and company establishes itself as a good community citizen, providing
immeasurable, lasting rewards.
Waste reduction begins by understanding what is being purchased, how goods are used,
and then is put to use by finding ways to eliminate, reduce, reuse, and recycle materials.
Table 3.19
Waste Management
Recommended Preferred Hazardous

Storage Disposal Waste?
Liquids -waste oil -drum (segregate) -oil recycler -Special
-transmission fluid -drum (segregate) -oil recycler -Special
-gear oil -drum (segregate) -oil recycler -Special
-solvents (solvent -solvent sink -solvent -Special
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sink) recycler
-solvents, thinners, -tank (segregate) -fluids recycler -Possibly
misc. fluids -hazardous
-brake fluid -drum or tank waste hauler -Yes
-Recycler
-antifreeze -drum or tank -hazardous -Special
-paints -organizer waste hauler -Yes
container
Solids -used parts; clean -bin (covered or -scrap collector -No
metal scrap indoors)
-used oil parts, fuel -drum -hazardous -Yes
filters, etc. waste hauler
-metal shavings -bin (covered or -scrap collector -No
indoors)
-tires -covered or -tire hauler -No
indoors
-batteries -open rack -battery -Special
supplier
-oil filters -drum (drain first) -oil recycler -Special
-used rags -rag bin with lid -rag laundry -Possibly
-ermpty cans, -drum -Mun. trash/haz -Possibly
bottles, aerosol waste hauler
cans, etc.
-soiled cleanup -drum -Mun trash/haz. -Possibly
absorbent waste hauler
12. CONCLUSION
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Nasugbu Highway, Tagaytay, Cavite, Philippines, Location 2 is at 1000 Luksuhin – Mangas
Road, Alfonso, Cavite, Philippines and Location 3 is at 18 Madison St. Alfonso, Cavite,
Philippines. The ACT! Auto Repair Shop is located in a 300 sq. m at 1000 Luksuhin – Mangas
Road, Alfonso, Cavite, Philippines. The location was selected through considered rated using
Factor Rating. It appears based on the available information that Location 2 at 1000 Luksuhin –
The evaluated suppliers that have the lowest unit price offered for the is New Banawe
Auto Supply 22 Banawe St. Quezon City, 111 Metro Manila, for the equipment is New
Banawe Auto Supply 22 Banawe St. Quezon City, 111 Metro Manila also, and for the supplies
is Shopee.
The operating time of ACT! Auto Repair Shop is twenty-four (24) hours. With these
findings, the researchers concluded that the technical aspect of the study is feasible.
CHAPTER IV
FINANCIAL STUDY
1. INTRODUCTION
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Financial feasibility focuses specifically on the financial aspects of the study. It assesses
the economic viability of a proposed venture by evaluating the startup costs, operating
expenses, cash flow and making a forecast of future performance. It shows the viability of the
proposed business through the presentation of the financial statements. It is the side of the
study where the business can communicate itself to the respective investors. This aspect shows
the financial outcome of the proposed business.
A. Objectives
General Objective:
The main objective of this aspect is to determine the financial feasibility of Vulcanizing
and Repair Shop’ Mobile Application.
Specific Objectives:
• to compute the initial capital requirements and of the proposed business
• to create and generate financial statement
• to calculate financial ratios used to measure liquidity, profitability and stability
of the business
• to determine when will be the return of investment
Scope and Limitations
The financial aspect covers all the financial activities of the ACT! Auto Repair Shop. It
focuses on the total project cost, financial statements and financial ratio of the proposed
business.
Financial Assumptions
To determine the possible future revenues and expenditures of the company,
ACT! Auto Repair Shop assumes the following:
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• the business will adopt the calendar year operation starting 2021 of January;
• working days are 7 days in a week; 4 weeks in a month;
• workers will work 8 hours in a day;
• the overall projected investment cost is P890,866.00;
• employee salaries are expected to increase to 2% every year;
• fixed assets will be depreciated over their life span in accordance with depreciation
table in the appendices with zero residual value;
• useful life of 10 years for the office supplies, equipment and machines;
• repairs and maintenance will be 5% of the total carrying amount of the Property every
year;
• unused supplies at the end of the year are 5% of the total supplies available for use
during the year. Supplies purchases will increase 10% every year.
• raw materials inventory will be maintained at 10% of the cost of sales;
• advertising and promotion expenses will be P10,000 annually for five years; and
• waste management expenses were to P2,800 annually for five years.
B. Estimated Total Project Cost

b.1 Initial Capital Requirements
The amount of PHP 890,866.00 is composed of supplies, property,
machines and equipment, advance rental and security deposits and one year
working capital is needed as an initial requirement to start up the business.
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b.2 Sources of Funds
For a business to commence, funds must be sources either through equity or
capital investment of the partners or both. In this case, the proponents elected the
use of only equity to finance the business wherein each partner will contribute an
equal amount of Php 300,000.
Table 4.2 Partner’s Contribution
b.3 Pre-Operating Costs
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Services Offered and Prices
Service Revenue
87
88
89
Financial Ratios
90
91
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3. CONCLUSION
represent the performance of the proposed business within the five-year term. Assumptions
were used to determine the possible future revenues and expenditures of the company. The
proposed business is financially viable with a payback period of ten months.
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CHAPTER V
MANAGEMENT STUDY
1. INTRODUCTION
Management aspect chapter describes the form of business organization that is best suited
for the proposed subject, the organizational structure, vision & mission of the business, the
number of personnel needed, their compensation and benefits, and the policies that the company
implements. It implies a clear and precise identification of duties and responsibilities, flow of
authority and manpower level requirement. It must be set up for optimum effectiveness.
A. Objectives
General Objectives
The main objective of this aspect is to determine the management feasibility of
Specific Objectives
 to determine the number of employees needed to operate the business
 to enumerate the different positions, duties and responsibilities and
qualifications of the employees
 to establish a detailed compensation and benefits scheme for the employees of
the business
 to define the vision and mission of the business
Scope and Limitation
The scope of management aspect is all about the entire organizational
arrangement of the business with a clear and precise identification of duties and
responsibilities of qualified workers, management’s policy, flow of authority and
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manpower requirement. It limits the nature of employees on how to handle by the
management through the policies and structure of the business.
B. Forms of Ownership
This business shall be named ACT! Auto Repair Shop and is initially established
as a partnership with three (3) stakeholders who engage in a business project by securing
contracts. Profits will be shared equally among partners and legal agreements will be
made that sets forth the decision-making, admission of future partners and dissolution of
partnership. Transfer of shares is subject for the unanimous approval of all partners.
There are three essential elements to a general partnership:
1. a sharing of profits and losses,
2. a joint ownership of the business, and
3. an equal right in the management of the business
A general partnership must satisfy the following conditions:
1. the partnership must minimally include two people;
2. all partners must agree to any liability that their partnership may incur; and
3. the partnership should ideally be memorialized in a formal written partnership
agreement, though oral agreements are valid.
A general partnership is a business arrangement by which two or more
individuals agree to share in all assets, profits, and financial and legal liabilities of a
jointly owned business. General partnerships typically dissolve when one partner dies,
becomes disabled, or exits the partnership. Provisions may be written into an agreement
that provides directives for moving forward during these situations. For example, the
agreement may stipulate that the deceased partner's interest is transferred to the
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surviving partners or a successor. The taxation of a General Partnership is calculated at
the individual level.
Advantages of General Partnership:
 A general partnership faces simplified taxes. General partnerships do not pay
income tax. All profits and losses are passed through to the individual partners.
 A general partnership is easy to establish. Creating a general partnership is
simpler, cheaper, and requires less paperwork than a forming a corporation.
 There is an increased ability to raise funds when there is more than one owner.
 The increased skill set immediately boosts productivity and business’s
possibilities. It provides space to brainstorm, be more creative and share
innovation.
 Improved management with more than one owner.
Table 5.1: Owners’ Information
NAME NATIONALITY ADDRESS
ANGELES, DORITHY JOY P. FILIPINO MARAGONDON,

CAVITE
CACAS, JOHN RAMEL T. FILIPINO TRECE MARTIRES
CITY, CAVITE
TOREGOZA, MOISES BRYAN FILIPINO DASMARINAS,
J. LAGUNA
Table 5.1 shows the names, nationalities and residences of the partners of the association.
C. Organizational Structure
The organizational chart is the graphical representation of the organization’s
structure. Its purpose is to illustrate the reporting relationships and chains of command
within the organization.
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ACT! Auto Repair Shop
Owners
Project Manager
Officer in Charge Mechanic Marketing Assistant
Figure 5.1 organization of ACT! Auto Repair Shop
Figure 5.1 shows that the ACT! Auto Repair Shop owners are the top management of the
business and is followed by the project manager handling the officer in charge, mechanic and
marketing assistant.
Personnel Qualification and Function
Job Title: Project Manager
Job Summary: The Project Manager is responsible for planning, organizing, and directing the
completion of specific projects for an organization while ensuring these projects are on time,
on budget, and within scope.
An accountable project coordinator is responsible for all technical disciplines that a
project consists of. He/she will schedule, plan, forecast, resource and manage all the technical
activities aiming at assuring project accuracy and quality from conception to completion.
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Specific duties and responsibilities:
 Project Management is all about communication, whether through emails, calls,
daily check-ins, or team meetings.
 Handle customer inquiries and respond to their needs in a cool, courteous and
prompt manner.
 Prepare the cost estimates including the services and repair costs and the cost of
spare parts, if needed.
 In order to ensure that the project remains on track, many project managers turn to
timesheets or a project management that allows them to see how their team is
spending their time.
 A good project manager will do more than simply manage the steps of a project and
will also manage their team in order to keep them productive and happy.
Job Qualifications:
 Must be 18 years old and above
 Proven working experience as a project manager
 Advanced MS Office skills
 Familiarity with rules, regulations, best practices and performance standards
 Ability to work with multiple discipline projects
 Project management and supervision skills
 Decision making ability and leadership skills
 Time management and organization skills.
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Job Title: Officer in charge
Job Summary: The Officer in charge will act as the assistant of the project manager and point
of contact for all employees, providing administrative support and managing employees and
client’s queries.
 Develop business and marketing plans in coordination with project manager to
achieve revenue goals.
 Analyze the current and past budgets, expenses, sales, revenues and product
deficiencies in order to provide recommendations for business growth and problem
resolution.
 Research the market for identifying new business opportunities.
 Explain prospective clients about the advantages of the products or services offered
and follow up with them in order to close the business deals.
 Respond to the client queries regarding the products in a timely fashion.
 Develop business proposals for new and existing customers.
 Develop creative strategies to retain the clients including interviewing them to take
their feedback and incorporate it into the growth plan.
 Prepare the annual marketing budget and track the expenses against the budget.
Job Qualifications:
 Must have at least a High school diploma; additional qualifications in Office
Administration are a plus
 Solid knowledge of office procedures
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 Excellent written and verbal communication skills
 Strong organization skills with a problem-solving attitude
 Experience with office management software like MS Office (MS Excel and MS
Word, specifically).
 Attention to detail
Job Title: Mechanic
Job Summary: The Mechanic is generally responsible for the usage of inspecting and testing
equipment, performing preventive maintenance work, engine tune-ups, oil change, tire rotation,
filter replacement, tire change, wheel balance testing, cleaning, vehicle paining and detailing.
 Inspect vehicle engine
 Inspect mechanical and electrical components
 Diagnose issues timely and accurately
 Inspect vehicle computer and electronic systems
 Conduct regular maintenance work such as replacing fluids, lubricating parts
 Schedule future maintenance sessions
 Advise motorists on good vehicle use
 Offer products and service
 Build relationships with customers.
 Act as an advisor and give useful advice for car maintenance
 Maintain equipment and tools in good condition
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Job Qualifications:
 Have experience as an auto mechanic
 Must have a college diploma or at least an associate degree
 Excellent verbal/written communication, problem-solving abilities and strategic
thinking
 Excellent knowledge of mechanical, electrical and electronic components of vehicles.
 Have experience with vehicle diagnostic systems and methods
 The ability to learn new technologies quickly
 The ability to multi-tack
Job Title: Marketing Assistant
Job Summary: The Marketing assistant prepares, compiles and distributes financial and
statistical information such as budget spreadsheets, writing reports, company brochures and
similar documents, organizing and hosting presentations and customer visits and assisting with
promotional activities.
 Undertake daily tasks to ensure the functionality and coordination of the business
activities
 Support in organizing various projects
 Conduct market research and analyze consumer rating reports
 Employ marketing analytics techniques to gather important data
 Update spreadsheets, databases and inventories with statistical, financial and non-
financial information
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 Assist in the organizing of promotional events and traditional or digital campaigns and
attend them to facilitate their success
 Prepare and deliver promotional presentations
 Compose and post online content on the company’s website and social media account
 Communicate directly with clients and encourage trusting relationships
Job Qualifications:
 Must possess at least high school diploma: BS in Marketing, Business or relevant field.
 Proven experience as a marketing assistant
 Good understanding of office management and marketing principles
 Demonstrable ability to multi-task and adhere to deadline
 Well-organized with a customer-oriented approach
 Good knowledge of market research techniques and databases
 Excellent knowledge of MS Office, marketing computer software and online applications
 Exquisite communication and people skills
Table 5.2
Labor Requirements
Position Number of Employee
Project Manager 1
Officer in Charge 2
Mechanic 3
Marketing Assistant 1
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Table 5.2 shows the number of employees that require for each position of the company.
Compensation and Benefits Program
Every employee in an organization is entitled with necessary compensation and benefits
program.
1. 13th month: The Company grants a 13th month pay equivalent to one (1)
month’s pay to all eligible employees provided that worked for at least one (1)
month during a calendar year. The thirteenth-month pay should be given to the
employees not later than December 24 of every year.
2. Sick Leave: Twelve (12) days for the first two years of service and additional 1
day every year starting on the 3rd year. Maximum total sick leave is fifteen (15)
days. All unused leaves will be given as incentives at the end of the year.
3. Holidays: Ten (10) paid national regular holidays and eight (8) national special
holidays per year as provided under Proclamation No. 555 (2019
Declared Holidays)
4. Vacation: Thirteen (13) vacation leave, with additional one (1) day every year
starting on the 3rd year of service and convertible to cash at the end of each
year. Maximum vacation leave is eighteen (18) days.
5. Management Proposal
5.1 Business Profile
Business profile is designed to be an overview of the business and the business
plan. It provides a quick overview of the business, including the values and objectives,
so to get information of what the business or service can offer. It is also a professional
introduction and aims to inform people about services, process and current status.
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ACT! Auto Repair Shop is a job shop that provide professional auto repair,
maintenance services and other auto repair related services that will assist businesses,
individuals, households and non-profit organizations who owns automobiles in
ensuring that their automobiles are always in good shape.
5.2 Management Style
Management style is the particular way managers go about accomplishing
these objectives. It encompasses the way to make decisions, how to make plan and
organize work, and how to exercise authority. Also, management styles are the
principles that underline the methods, abilities and techniques managers use in
handling situations and expressing leadership within an organization. It can vary
widely depending on the company, level of management, industry, country, and
culture, as well as the person themself.
Our Vision
ACT! Auto Repair Shop will be the preferred shop on Tagaytay City by
providing extraordinary customer that exceeds customer expectations.
Our Mission
Auto Repair exists to help our customers care for and extend the life of
their automobile investment.
Our Core Values
 Trustworthy
Can trust that company will provide an honest estimate for collision repairs.
 Rely on the competence of our technicians
Work with a worry-free warranty.
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 Caring
Company cares about the details, and it shows in the precision of the work
and commitment to quality control.
 Hardworking
At ACT! Auto Repair Shop, the company work hard to repair the vehicle in
a timely and cost-efficient manner.
 Growing
ACT! Auto Repair Shop pays for the technicians to complete continuing
education to make sure to have the skills and knowledge it takes to make it
better.
 Generous
Go above and beyond competitive pay and benefits to ensure to have happy
team members who are glad to help the customers.
 Grateful
The friendly voices on the phone and smiles at the door allows to know to
appreciate the business.
Safety Rule, Policies and Procedures
The safety rules contained on these pages have been prepared to protect in
daily work. Employees are to follow these rules carefully, review them often and
use common sense in carrying out assigned duties.
General Safety Rules
 Straighten or remove rugs and mats that do not lie flat on the floor
 Use the handle when closing doors, drawers and files
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 Obey all posted safety and danger signs
 Use caution signs/cones to barricade slippery areas such as freshly mopped
floors
 Do not block the view by carrying large or bulky items; use a dolly or hand
truck or get assistance from a fellow employee.
 Do not stand in front of closed doors.
 Clean shoes of ice, water, mud, grease or other substances that could cause
a slip or fall.
 Do not move faster than conditions allow on slippery surfaces or in
congested areas.
 Open one file cabinet drawer at a time.
Electrical Safety
 Do not use appliances and extension or power cords that have the ground
prong removed or broken off.
 Do not connect multiple electrical devices into a single outlet.
 Do not overload electrical circuits with multiple outlets.
 Turn off electrical appliances and equipment when not in use.
 Turn off and unplug office machines before adjusting, lubricating or
cleaning them.
Office Safety
 Close drawers and doors immediately after use.
 Do not kick objects out of the pathway; pick them up or push them out of
the way.
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 Store sharp objects, such as pens, pencils, letter openers or scissors in
drawers or with the points down in a container.
 Keep floors clear of items such as paper clips, pencils, tacks or staples.
 Do not use extension or power cords that have the ground prong removed
or broken off.
 Do not connect multiple electrical devices into a single outlet.
 Do not throw matches, cigarettes or other smoking materials into trash
baskets.
 Keep doors in hallways fully open or fully closed.
 Turn off and unplug office machines before adjusting, lubricating or
cleaning them.
 Do not use frayed, cut or cracked electrical cords.
 Clean up spills or leaks immediately by using a paper towel, rag or a mop
and bucket.
Lifting Procedures
 Plan the move before lifting; remove obstructions from the chosen
pathway.
 If the load is too heavy or bulky, use lifting and carrying aids such as
hand trucks, dollies, pallet jacks and carts or get assistance from a co-
worker.
 Position the feet 6 to 12 inches apart with one foot slightly in front of the
other.
 Face the load.
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 Keep the back of the body straight.
 Get a firm grip on the object with hands and fingers. Use handles when
present.
 Never lift anything if the hands are greasy or wet.
 Hold objects as close to the body as possible.
 Do not lift an object from the floor to a level above the waist in one
motion. Set the load down on a table or bench and then adjust the grip
before lifting it higher.
 Slide materials to the end of the tailgate before attempting to lift them
off of a pick-up truck. Do not lift over the walls or tailgate of the truck
bed.
 When practical, push objects into position for lifting; do not pull.
Shop Safety
 Use a flexible exhaust hose to vent engine exhaust to the outside when the
shop bay doors are closed.
 Remove dust and shavings from drum lathes with a dustpan and broom or
vacuum cleaner on a daily or job by job basis. Do not use bare hands.
 Dump gasoline and other liquid chemical waste into containers labeled
"Flammable Waste" from containers labeled "Flammable".
 When examining under the dash, use inspection mirrors. Do not twist the
body or maintain an awkward posture when trying to look under the dash.
 Wear gloves, safety goggles and a rubber apron when working in the
battery charging area.
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 Direct engine hand tools away from rotating fan blades when the engine is
running.
Vehicle Safety
 Turn headlights on when driving inside the shop area.
 Shut all doors and fasten the seat belt before moving the vehicle.
 Before leaving the vehicle, engage the parking brakes and chock the
wheels.
 Do not approach any vehicle until the vehicle stops and the driver
exits.
 Walk behind the vehicle and remove any equipment, tools or other
pathway instructions before getting into the vehicle. Sound the horn to
alert nearby coworkers before backing the vehicle.
Tire Service
 Use the positive lock-down device to hold the wheel on the tire
machine before to attempt to inflate the tire. If tire is mounted on a
machine that does not have a positive lock-down device, perform
inflation in a safety cage.
 Inspect both sides of the tire to be sure that the beads are evenly
seated.
 After the beads are fully seated, adjust the tire pressure to meet the
operating pressure labeled on the tire sidewall.
 Replace a tire on a rim with another tire of exactly the same rim
diameter designation and suffix letters.
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 Do not mount or use tires, tubes, wheels or rims that are split, cracked,
cut or contain signs of other structural defects.
 Wear leather gloves when removing rocks, glass and other foreign
materials from the inside of the tire.
Electrical Tool Safety
 Do not use power equipment or tools on which have not been trained.
 Keep power cords away from the path of vacuum cleaners, floor
polishers and grinders.
 Do not carry plugged in equipment or tools with the finger on the
switch.
 Do not carry equipment or tools by the cord.
 Disconnect the tool from the outlet by pulling on the plug, not the
cord.
 Turn the tool off before plugging or unplugging it.
 Do not leave tools that are "On" unattended.
 Turn off electrical tools and disconnect the power source from the
outlet before attempting repairs or service work. Tag the tool "Out of
Service".
Hand Tool Safety
 Do not use a tool if its handle has splinters, burrs, cracks or splits, or if
the head of the tool is loose.
 Do not use impact tools such as hammers, chisels, punches or steel
stakes that have mushroomed heads.
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 Do not carry sharp or pointed hand tools such as screwdrivers, scribes,
aviation snips, scrapers, chisels or files in pocket unless the tool or
pocket is sheathed.
 Do not perform "make-shift" repairs to tools.
Automotive Lifts
 Remove all tools, cords, hoses, trash and any other debris from the lift
area and wipe up all grease and oil spills before driving a car or truck
into the service bay.
 Position the lift arms, adapters and supports to the center of the lift out
of the way of the car's tires before driving the vehicle into the service
bay.
 Do not use any lift that has cracked contact pads, cracked lift arms or
any other visible damage.
 Do not leave the controls unattended while the lift is in motion.
 Do not use the engine or transmission supports or stands as a substitute
for jack stands.
 Before lower the vehicle, remove tool trays, jack, engine and
transmission stands, and any other obstructions from under the vehicle.
 Before removing the vehicle from the service bay, position lift arms
and supports to the center of the lift away from the wheels of the
vehicles.
 Do not raise vehicle with anyone inside it.
Hiring Process and Procedures:
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ACT! Auto Repair Shop believes that hiring qualified individuals to fill
positions contributes to the overall success of the company. Each employee is hired to
make significant contributions to the business.
1. Personnel requisitions
Personnel requisitions must be completed to fill ACT! Auto Repair Shop
positions. Requisitions must be initiated by the project manager, approved by the
company owners and then forwarded to the project manager and officer in charge.
Personnel requisitions should indicate the following:
 Position title.
 Position hours/shifts.
 Exempt or nonexempt status of the position.
 Reason for the opening.
 Essential job functions and qualifications.
 Any special recruitment advertising instructions.
2. Intake meetings
Intake meetings give recruiters the chance to get a clear picture of what hiring
managers want in a candidate, it's also an opportunity to provide insight around the
available candidate pool and competitive marketplace
Officer-in-charge will arrange a meeting with the hiring manager to conduct an
intake meeting prior to posting a job opening to learn more about the position, the
requirements and the profile of the ideal candidate. The recruiting strategy will be set
during this meeting and expectations established with all the key stakeholders.
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3. Job postings
The Officer-in-charge will create job postings that briefly describe the job
opening and service of the ACT! Auto Repair Shop. All job openings will be posted
concurrently on the company’s intranet and externally with sources appropriate for the
position being filled. Jobs will remain posted until the position is filled.
The Project manager with the assistance of officer-in-charge will be responsible
for tracking all applicants and retaining applications and resumes as required.
4. Internal applicants
Internal candidates are already part of the workplace, so the time that need to
find and engage those candidates is much less. It is also easier to assess internal
candidates. All applicants for a posted vacancy will be considered based on their
qualifications and ability to perform the job successfully. Internal candidates who are
not selected will be notified by the officer-in-charge.
5. Interview process
Interviewing is an important step in the employee selection process. If done
effectively, the interview enables the employer to determine if an applicant's skills,
experience and personality meet the job's requirements. In addition, preparing for
an interview can help clarify a position's responsibilities.
The project manager with the assistance of officer-in-charge will screen
applications and resumes prior to scheduling interviews. Initial interviews are generally
conducted by the project manager using behavior-based interview questions and a
structured interview process. Candidate evaluation forms will be completed after each
interview and retained with the application.
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Requirements
 Medical Certificate
 Birth Certificate
 NBI Clearance
 Barangay Clearance
 Police Clearance
 Completely filled application form
Attendance Policy
Regular attendance and punctuality are vital attributes for all employees. It
is important for employees to attend work regularly and to arrive at work on time,
because failure to do so detrimentally affects employee morale and productivity
The policy of ACT! Auto Repair Shop is to establish reasonable and necessary
controls to ensure adequate attendance of employees and to meet business needs. The
officer-in-charge is responsible for creating work schedules of the employees.
Attendance/Punctuality
1. The Company expects that every employee will be regular and punctual in
attendance because ACT! Auto Repair Shop is twenty-four (24) hours operating
and ready for emergency service. This means being in the office, ready to work
at their starting time each day. Absenteeism and tardiness place a burden on
other employees and on the company.
2. If the employees are unable to report for work for any reason, notifying the
officer in charge before regular starting time is a must. Employees are
responsible for speaking directly with the officer in charge about their absence.
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3. Should undue tardiness become apparent, disciplinary action may be required.
Absence Without Notice
 When an employee is unable to work owing to illness or an accident, please notify
the officer in charge.
 If an employee does not report for work and the company is not notified of their
status, it will be assumed after two consecutive days as an absent and will be removed
from the payroll.
 If an employee becomes ill while at work or must leave the office for some other
reason before the end of the workday, be sure to inform the officer-in-charge.
2. CONCLUSION
three business owners. The business is composed of a project manager and two officers in
charge. ACT! Auto Repair Shop will provide the detailed compensation and benefits to the
employees and believes that having qualified individuals to fill positions contributes to the
overall success of the company. The management aspect of the study is feasible with the
corresponding requirements.
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CHAPTER VI
SOCIAL ECONOMIC STUDY
1. INTRODUCTION
Socio-economic aspects and the environmental dimension, Socio-economic aspects
and the institutional or legal dimension. In a society, people basically try to fulfill their
needs by deploying various activities like production and trade. Socio-economic focuses
on the relationship between social behavior and economics. Social economics consists of
two broad perspectives that, though opposite in their approach, can be thought of as
complementary.
The Socio-Economic aspect of the study includes the socio-economic benefits of
the proposed project and discusses the details of the responsibilities and relationship of
the business towards the society within which it operates. Nowadays, it is important that
small entrepreneurs should realize the worth of innovating and starting a business that
would largely contribute to the socio-economic development of the country.
A. Objectives
General Objective
To main objective of this aspect is to determine the socio-economic feasibility of
Specific Objectives
• to prove that the proposed business will provide benefits to the people as well as to the
government.
• to determine the corporate social responsibility of the business
• to know the acceptability of the proposed study to the social economy
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Scope and Limitations
The scope of socio-economic aspect of the study is to assess the importance of
the business to its community and identify the factors that will best suit to the proposed
business, and these factors are the Social and Economic Desirability and the Corporate
Social Responsibility.
The study limits only on the impacts of the factors directly to the City of
Tagaytay, Cavite and the economic acceptability of ACT! Auto Repair Shop in the
community.
B. Identification of Socio - Economic and Environmental Goals
It is anticipated that sectors like automotive, electronics and software or freight
transport will be positively affected while other sectors like insurance or maintenance and
repair will face significant challenges. Important labor changes lie ahead for professional
drivers, decreasing driving responsibilities towards new more technical roles.
Social Desirability Generation of Employment
The Philippines is seen booking the highest unemployment rate in Southeast
Asia. To be able to help the employees to meet their future needs. Working at a job,
vocation or career is one of the critical pieces for most of our lives. A job provides
income that need to pay for our basic needs. A job does more than provide income for a
person. A job also provides people with a sense of fulfillment, productivity, and
purpose. Job openings from ACT! Auto Repair Shop will give opportunities to the
unemployed people especially in Tagaytay City, Cavite who are starting to look for
jobs.
Revenue Generation
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The ACT! Auto Repair Shop plans to offer different services in Tagaytay City,
Cavite, with this, identifying target market, good promotion strategy through print
advertisement and social media, the company will generate income at the same time
taxes will be paid as the business operates.
Economic Desirability Tax Generation
The business contributes to the government revenues in the form of taxes paid.
ACT! Auto Repair Shop will have the obligation to pay the right amount of taxes to be
able to help bear the government. The tax collected is used for the betterment of the
economy and all living in it. These tax payments from the business would help the
localities as well as the economy in its future project especially for people that will
benefit.
Corporate Social Responsibility
Every company manages its business processes to produce an overall positive
impact on society. Corporate social responsibility is the practice of integrating social
and environmental goals into business operations. The ACT! Auto Repair Shop will
conduct activities for employees such as seminar, trainings and team buildings. It may
also participate in activities such sponsoring or organizing a humanitarian donation.
c. Impact Assessment
Contribution to the Philippine Economy
The auto parts industry is facing competitiveness issues due to the absence
of economies of scale and a weak supply base. These are the fundamental issues
that must be addressed in order to strengthen the industry and integrate it with
regional production networks. To help firms achieve this, there is a need for
118
strategic industrial upgrading policy and carefully designed temporary subsidies
that would target improvement of firm competitiveness. As this business would
positively affect the income generation of the Philippine economy, this would
also encourage potential entrepreneurs to engage to such industry, and eventually
offer more job opportunities and increase employment rate as well. The
contribution of this proposed project is to add values to the income and savings of
the Philippine economy.
Contribution to Community
ACT! Auto Repair Shop will contribute to the community by bringing growth
and innovation in which the business was established. Job openings from the business
will helps to increase the economic growth by giving opportunities to the unemployed
people who are starting to look for jobs and to employed people who lost their jobs and
are looking for new ones. ACT! Auto Repair Shop may also participate in activities
such as sponsoring or organizing a humanitarian donation.
Conclusion
The ACT! Auto Repair Shop is not only for the profit purposes but also for the
their home or place of employment. So, in an area where new homes are being built or new
businesses are opening local business growth can be positively impacted. With these factors,
the socio-economic aspect of the study is feasible
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CHAPTER VII
CONCLUSION
Marketing Aspect
the customers through their smart phones. Revenues are generated from replacement part and
mechanic labor sale. The services can be in more detail, such as emergency or scheduled
maintenance, brake repair, transmission, wheel alignments, rims and tires and also
comprehensive engine repair. The researchers conducted a survey among 365 respondents
from different motorists that travel within Tagaytay City and gathered data to support the
study. Results revealed that 64.4 % male and 35.6 % female respondents travelled within
Tagaytay City. In terms of age, 39.5 % was 22-26 years old; 23.6 % was 27-31 years old; 12.1
% was 32-36 years old; 11 % was 17-21 years old; and others were below 10%, respectively.
For educational attainment, 65.2 % of the respondents were college graduate; 24.1 % was
undergraduate; 9.6 % of the respondents were high school graduate; and below 5 % was
elementary graduate. In terms of employment status, 77 % of the respondents were employed
while 23 % of the respondents were unemployed. The monthly income of the respondents was
shown as, 27.4 % earned Php 20,000 – 30,000; 25.2 % earned Php 10,000 – 20,000; 23. 8 %
earned Php 0 – 10,000; 10.7 % earned Php 50,000 and above; and below 20 % of the earned
Php 30,000 – 50,000. With regard to the purpose for visiting Tagaytay City, data revealed that
67.7 % of the respondents were tourists, 16.2 % of the respondents visited the place for work-
related concerns; 9.6 % of the respondents were residents; and below 10 % of the respondents
visited relative. In terms of vehicles used of the respondents, it was found out that 43 % used
SUV/Sedan; 32.1 % used motorcycle; 16.4 % used 4x4/Van; 7.4 % used bicycle; and below
120
5 % used truck/bus. Moreover, 56.2 % of the respondents said they sometimes visited the city,
while 43.8 % stated that they always come to the place. When it comes to experience, results
showed that 86 % of the respondent’s experienced problems during trips, and 14 % of the
respondents did not experience problems during trip. When they had problems in their trips,
58.6 % of the respondents called for local repair shop while 33.2 % fixed them; and below 10
% did other things. With regard to the common types of problems encountered during their
trips, results showed that 48.5 % of the respondents had flat tires; 17.3 % experienced engine
overheat; 16.7 % had an empty fuel; 8.2 % had a dead battery; 6.6 % experienced a failed
starter; and below 5 % had other related problems. Data on difficulties experienced by the
respondents during their trips revealed that 87.9 % suffered difficulties in searching for help
while 12.1 % did not experience any difficulty in searching for help. Lastly, 97 % of the
respondents said that the problem can be solved by using mobile application while 3 % stated
that the problem cannot be solved by using mobile application.
The researchers determined that there is 21.4% gap between the demand and supply for
the services. ACT! Auto Repair Shop has no direct competitors that provide the same services.
The researchers also determined that there is a market share of 7.55% to 8.12% for the
year 2021 to 2025.
Through this, the proponents sought the marketability of the proposed business to enter
the market. The gross profit of the company will be derived from deducting all the costs. With
these findings, the researchers concluded that the market share for the study is feasible enough.
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Technical Aspect
Nasugbu Highway, Tagaytay, Cavite, Philippines, Location 2 is at 1000 Luksuhin – Mangas
Road, Alfonso, Cavite, Philippines and Location 3 is at 18 Madison St. Alfonso, Cavite,
Philippines. The ACT! Auto Repair Shop is located in a 00 sq. m at 1000 Luksuhin – Mangas
Road, Alfonso, Cavite, Philippines. The location was selected through considered rated using
Factor Rating. It appears based on the available information that Location 2 at 1000 Luksuhin –
The evaluated suppliers that have the lowest unit price offered for the is New Banawe
Auto Supply 22 Banawe St. Quezon City, 111 Metro Manila, for the equipment is New
Banawe Auto Supply 22 Banawe St. Quezon City, 111 Metro Manila also, and for the supplies
is Shopee.
The operating time of ACT! Auto Repair Shop is twenty-four (24) hours. With these
findings, the researchers concluded that the technical aspect of the study is feasible enough,
Financial aspect
represent the performance of the proposed business within the five-year term. Assumptions
were used to determine the possible future revenues and expenditures of the company. The
proposed business is financially viable with a payback period of ten months.
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Management aspect
three business owners. The business is composed of a project manager, two officers in charge,
technician and marketing assistant. ACT! Auto Repair Shop will provide the detailed
compensation and benefits to the employees and believes that having qualified individuals to fill
positions contributes to the overall success of the company. The management aspect of the study
is feasible with the corresponding requirements
Socio-economic aspect
The ACT! Auto Repair Shop is not only for the profit purposes, but also for the
their home or place of employment. Therefore, in an area where new homes are being built or
new businesses are opening local business growth can be positively impacted. With these
factors, the socio economic aspect of the study is feasible.
123

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A FEASIBILITY STUDY ON ESTABLISHING AN AUTO REPAIR SHOP WITH

Submitted to the Faculty of the

College of Engineering, Computer Studies, and Architecture

Lyceum of the Philippines University- Cavite

Of the Requirements for the Degree

Bachelor of Science in Industrial Engineering

ANGELES, DORITHY JOY P.

CACAS, JOHN RAMEL T.

TOREGOZA MOISES BRYAN J.

College of Engineering, Computer Studies and Architecture

A FEASIBILITY STUDY ON ESTABLISHING AN AUTO REPAIR SHOP WITH

Dorithy Joy P. Angeles , John Ramel T. Cacas , Moises Bryan J.

Toregoza , Engr. John Paolo P. Severino

Proponents and Research Adviser

ACT! Auto Repair Shop is an auto repair shop accompanied by a mobile

Keywords: Auto Repair Shop, mobile application, mechanic, repairs

This project proposal entitle A FEASIBILITY STUDY ON ESTABLISHING AN AUTO

ENGR. John Paolo P. Severino

ENGR. JELYN M. RODRIGUEZ ENGR. JOSEPH VINCENT E. DAVID

ENGR. LAARNIE P. CARLOS ENGR. ANNALYN P. ROMERO

ENGR. ARNEL M. AVELINO, MEP – ECE

DR. RAMON C. MANIAGO

ANGELES, DORITHY JOY P.

Background of the Study……………………………………………………………………….1

Figure 1.1 Design of the Mobile Application...………….……………………………...2

Figure 1.2 Design of the Mobile Application……………………….…………………………..3

Figure 1.3 Business Logo of ACT! Auto Repair Shop…………………………………………3

Figure 1.4 Business Location…………………………………………………………………...4

Scope and Limitations…………………………………………………………………………..8

Service Background ……………………………………………………………………..10

Market Segmentation Analysis…………………………………………………………..12

Figure 2.1 Gender of the Respondents………………………………………………………..13

Figure 2.2 Age of the Respondents………………...…………………………………………13

Figure 2.3 Educational Attainment of the Respondents………………………………………14

Figure 2.4 Employment Status of the Respondents…………………………………………...14

Figure 2.5 Monthly income of the Respondents………………………………………………15

Figure 2.6 Purpose of the Trip to Tagaytay City of the Respondents…………………………15

Figure 2.7 Vehicle of the Respondents………………………………………………………..16

Figure 2.8 Times of Visit of the Respondents in Tagaytay City……………………………...16

Figure 2.11 Common problems that the Respondents encounter………………………….....18

Figure 2.12 Respondents’ experience difficulties when in search for help…………………..18

Number of Motor Vehicles Registered by Type in Tagaytay Extension Office for CY

Background of Existing Competitors……………………………………………………27

Demand and Supply Gap………………………………………………………………...32

CHAPTER III – Technical Study

Scope and Limitation………………………………………………………………………….41

Preliminary Information of Requirements…………………………………………………….42

Service Process: Flow Chart and Activity……………………………………………….45

Figure 3.1 Service Process………………………………….………………………………….46

Raw Materials Description………………………………………………………………49

Bill of Raw Materials…………………………………………………………………….51

Raw Materials Suppliers…………………………………………………………………51

Raw Materials Supplier Evaluation……………………………………………………...54

Machines, Equipment, Supplies……………………………………………………………….54

Table 3.7 Amount and Specifications of the Machines………………………………….54

Table 3.8 Amount and Specifications of the Equipments……………………………….55

Table 3.9 Amount and Specifications of the Supplies…………………………………...58

Machines and Equipment Suppliers…………………………...………………………...63

Machines, Equipment, and Supplies Supplier Evaluation……………………………….65