THAWING MACHINE

A Business Proposal
Presented to
Engr. Joseph Lester Galindo
College of Engineering
Mindanao State University
Marawi City

In Partial Fulfillment
Of the Requirements of the Course
ES-92 (Engineering Management)

REAL STEEL COMPANY

MAHARLIKA HIGHWAY, BRGY. TIMOGA

9200 ILIGAN CITY

realsteelcompany@gmail.com

MISSION

THE REAL STEEL is a leading enterprise devoted to providing customers with the
highest quality products and services.

We strive to achieve success in our

investment, always adhering to the strictest ethical and world-class standards.

We place high priority on investing in our human resources and in servicing our
communities.
"REAL STEEL will lead the way to the future of mobility, enriching lives around the
world with the safest and most responsible ways of moving people.
Through our commitment to quality, constant innovation and respect for the
planet, we aim to exceed expectations and be rewarded with a smile.
We will meet our challenging goals by engaging the talent and passion of people,
who believe there is always a better way."

VISION

"We believe that we are on the face of the earth to make great
products and that's not changing. We are constantly focusing on innovating.
We believe in the simple not the complex. We believe that we need to own
and control the primary technologies behind the products that we make, and
participate only in markets where we can make a significant contribution. We
believe in saying no to thousands of projects, so that we can really focus on
the few that are truly important and meaningful to us. We believe in deep
collaboration and cross-pollination of our groups, which allow us to innovate
in a way that others cannot. And frankly, we don't settle for anything less
than excellence in every group in the company, and we have the self-honesty
to admit when we're wrong and the courage to change. And I think
regardless of who is in what job those values are so embedded in this
company that REAL STEEL will do extremely well."

I.

INTRODUCTION
The continuing growth of quick freezing in the fishing or meat industry

has made necessary development of the industrial methods of reversing the

freezing process- that is thawing the fish or meat for further processing, for
cooking, and for sale as wet fish.
We, as ordinary people, want an easier and comfortable life and we are
not sufficiently provided with the money or the space for such large
industrial thawing machines. With that said, we, as innovative students,
came up with an idea to bring these large thawing machines in small food
establishments.
The number of food establishments and hotels here in Mindanao are
increasing. These people buy goods in bulk to save time and money and
store them in these refrigerators and freezers. However, they usually have a
hard time defrosting some goods, especially meat being the most common
product to be stored in freezers. Most of the time, they have to wait for hours
in order for the meat be defrosted enough for it to be cooked. Thats where
our product comes in. Our product ensures the consumer to wait for minutes
only in the defrosting process, thus, hastening the preparation of food for the
family or in food establishments.

II.

Description of a Business

Thawing Machine will be the preferred name that will describe the
proponents business. In this business we will assemble products from
different components.
This business will be in the form of partnership. It will compose of 11
members. We decided to offer to every hotels or food establishments who
are seeking to fast, efficient and comfortable way of defrosting meats.
We will establish this business to help individuals here in Mindanao to
meet and to satisfy the great demands of the people, especially those
individuals who are always in a hurry and delights in fast processes. The
operation will take place in Iligan City.

III. Background Information

With the use of frozen supplies, particularly frozen imports, controlled
thawing of seafood is an important process undertaken by many seafood
processors in the UK. Other sectors, notably fish fryers, also thaw seafood
but on a smaller scale. The benefits to using frozen seafood include that the
eating quality can be excellent, it enables variability in the supply chain to be
resolved, and frozen seafood has a longer shelf-life than fresh/chilled
products. Some of these benefits can be lost if the freezing, cold storage or
thawing processes are poorly managed. In order to produce the best quality
thawed product, it is important for businesses and seafood operatives to

understand the thawing process and ensure their systems are as effective as
possible. This section provides a summary of relevant information on thawing

Why freeze seafood?

The process of commercial freezing as a means of preserving seafood has
been established since the early 1900s. The main reasons for freezing
seafood are:

As a means of long term preservation and storage, it greatly extends

the shelf-life of seafood products.

With a longer shelf-life seafood products can be distributed throughout

the world.
It enables a seafood processor to retain a supply of seafood that can
be used throughout the year, reducing the seasonal fluctuations that

exist in the fresh-chilled (never frozen) sector.

In some cases, it is used as an aid to processing, particularly in shelling

prawns or Nephrops norvegicus tails.

It enables consumers to have greater choice of seafood throughout the
year.

Seafood processors, retailers and caterers use frozen fish in a range of

different forms. The majority of these frozen products require thawing
before further processing, before being fried in a fish and chip shop or
prior to final sale to the retailer. As such thawing is an integral part of the
seafood trade.

What is thawing?

Thawing is the process of changing a product from frozen to unfrozen.

It involves transferring heat to a frozen product to melt the ice that was
formed within the flesh during the freezing process. The point at which ice
crystals are converted back to water occurs completely when the
temperature throughout the seafood reaches -1C. The time required to melt
all the ice in the frozen seafood is the thawing time.

IV. MARKETING PLAN

A.TARGET MARKET

The major target market of the company is those people engage in a

type business which preserving foods are considered, particularly
owners of a large hotel or restaurant. Also any possible individual
buyers in the country.

B.PRODUCT

To make money, good quality of the product must be the major

concerned. Our product is very suitable to their needs. Our very own, very

convenient and impressive equipment THAWING MACHINE. This machine

helps to thaw certain frozen meat to a short period of time without
decreasing its quality. Air blast thawing involves surrounding frozen product
with warm moving air. Frozen meat is thawed rapidly in moving air. The
machine comprises fans to circulate warm, moist air around a large chamber
in which the meat is placed. A water spray system is used to humidify the air.
The unit is fully programmable to enable the thawing time to be controlled.
The units are often modular enabling them to be extended when additional
capacity is required.

THE DESIGN OF THE PRODUCT

SPECIFICATION

Thawing machine dimensions 2m1m1.5m(LWH)

Overall weight is 100kg

Pricing
Real steel company fabricates the design to the particular
fabrication company. The company decided to increase the retail price
to 100% of the total cost per unit.
# of Unit: 1
Total production cost:

Php15, 000,000

Total number of unit:

Production cost per unit
Mark-up:
Retail price:

1500
10,000
100%
Php10,000
+10,000
Php20, 000

V. Operational Plan
A. Sales target
The proposed product can be sold at any time. Every 3
months of the operation of the business the proponents will make
1500 units.

B. Production Schedule
The delivery from the fabrication company to the real steel
company is done every 3 months.

C. Production process
The entire body of our machine was fully fabricated by a particular
fabricator company. After fabrication process, delivery to our establishment
is to be done. Fabricated parts are going to be assembling by technology

department. Testing the assembled machine will be done by engineering

department.

VI. ORGANIZATION PLAN

A. ORGANIZATIONAL CHART

PRESIDENT and CEO

ALVARO, JULIUS CYDRICK E.

GENERAL MANAGER
DIOLAS, STEVENSON

COMPANY AUDITOR
JAY-AR CUERBO

ENGINEERING

MARKETING

TECHNOLOGY

DEPARTMENT

DEPARTMENT

DEPARTMENT

RYARRR

RYAN MUSICO

JAKE DAIZ

BASH RASHID BADDONG

ERWIN PATAN

JAMIL CALANDA

GLORIO PULGA

RICHARD BANOG

PAPANDAYAN, MUAYM

UTILITY
WORKERS
The President and CEO will be the highest ranking position of the
organization. The marketing department will be the sales in charge and will
report to the auditor and general manager as required which the second and
third

highest

ranking

position

of

the

organization.

The

engineering

department and technology department will report to the general manager.

B. FUNCTIONS

President and CEO

Responsible for the decision making.

Head of the Company
Holds the most number of stocks

General Manager
Supervises and manages the entire business operation.

Organizes the policies, rules, regulation to keep work

efficiently.
Supervise the subordinate to accomplish the given task to
achieve business goals and objectives.

Auditor
Records the business transactions.
Makes purchase inventory report.
Computes and receives the overall payments.
Submits weekly sales, cash flows and financial report to the
manager.
Responsible for keeping any monetary concerns in the
operation.

Marketing Department
Records the needed raw materials to purchased.
Involved in purchasing activities.
Accountable for the procurement of the raw materials.
Responsible for entertaining the needs of the consumers.

Engineering Department

Supervise the making of the machines.

Design the mechanical parts of the machine.
Machine testing
Research and Development

Technology Department

Assembles the machine parts.

Develop every machine works.
Responsible for the output of the machine.

VII. FINANCIAL PLAN

A. BUDGET ASSUMPTIONS
1) The product will have a retail price of P20, 000 each.
2) 1500 number of units will be produced every 3 month.
3) Lot and building budget is assumed P 70 million.
4) Furniture and fixtures budget is P 300,000.
5) Office equipment budget is P 300,000.
6) Current bill and water bill monthly is assumed P 100,000.
7) Technology and Engineering equipment is assumed in total to be P
40,000.
8) Delivery equipment is 20 million
9) For the monthly wages of employee
POSITION

No. OF

WAGES

Gen.Manage
r
Auditor
Engineers
Marketing
Officers
Technology
Officers

WORKER
S
1

(monthly)

1
3
3

P 20,000
P 105,000
P 30,000

P 30,000

Utility
2
workers
TOTAL
10) Estimated other expenses is 10,000

P 40,000

P 16,000
P 241,000

B. FINANCE
There are 11 members in the business.

They will be called

industrialist-capitalist for they will be sharing the profits and losses of

the business operation equally. Each partner of the group will
contribute P 10 million each for the initial capital of the business.
C. TOTAL PROJECTED COST
The estimated projected cost is P 67,345,000. Show below is the
estimated cost for each category.

Fixed Asset:
Production equipment
Factory construction
Furniture and fixtures expenses
300,000

20,000,000
50,000,000

Delivery equipment expenses

20,000,000
Working Capital:
Transportation Expenses

10,000

Current and water bill (monthly)

100,000

Fabrication
15,000,000

expenses

Office Supplies Expense

100,000
Other expenses

10,000

TOTAL COST
105,520,000
D. Business income return
In three years operation of the business the income return is:
* Monthly operation
Machine produced
Retail price

500
P 20,000

P 10,000,000

* Sales will increase 2% per month

Monthly operation
x

P 10,000,000
.02
P 200,000

* Monthly machine defects produce is 0.2%

Monthly operation

P 10,000,000
0.002
P 20,000

In three years operation

Monthly operation P 10,000,000
200,000
No. of months in one year
(12-1)

Monthly operation increase

12

P120,000,000

P2,200,000

P 122,200,000

Yearly operation
Multiplied by 3
In three years operation

P 122,200,000
x

3
P 366,600,000

* Losses in three years operation

Monthly cost defect

P 20,000

No. of months in one year

12

P 240,000
x
Cost defect in three years

P 720,000

Monthly wages of employee

P 241,000

No. of months in one year

12

P 2,892,000
x

Employees wages in three years

8,676,000

Monthly water and current bills

P 100,000

No. of months in one year

12

P 1,200,000
x
Water and current bills in three year

P 3,600,000

The loss in three years operation is:

Cost defect in three years

P 720,000

Employees wages in three years

P 8,676,000

Water and current bills in three years

P 3,600,000

TOTAL LOSS

P 12,996,000

In three years operation

Total loss in three years

P 366,600,000
- 12,996,000
P 353,604,000

The net income within three year is P 353,604,000

The total income within three years

353,604,000
Divided by the no. of members

P
/

11
P 32,145,818.18
In three years operation, every member of the business will
receive
P 32,145,818.18

E. CONCLUSION
In this partnership, with a product of thawing machine, is now a
feasible business for there is a demand of the product in the industry.
Eleven partners will compose the business who will contribute P 10 million
each for a total of P 110 million. The money will then be used to cover the
projected cost of the business with the amount of P 105,520,000. This will
lead to a net income of P353, 604,000 within three years and the every
year the net income is P 117,868,000. The initial investment of every
members of the business will be recovered after one year.