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EXECUTIVE SUMMARY
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The Company
Gicha Ressha Train (GRT) is a private firm formed in 2014 to provide nation –
side railroad and transportation system for people traveling to Northern Luzon. Aiming
rehabilitates and modernizes transport facilities to effectively and efficiently performed
mandated tasks. As the economic grows, it was essential to facilitate the restoration of
abandoned Manila – Dagupan railroad.
The main office is located at Natividad Building, T.M. Kalaw Street Ermita,
Manila.
GRT is determined to improve access and mobility for residents, employees and
visitors to North Luzon. Minimize total travel time, transfers, and changes of mode by
integrating the system. Dedicated to provide convenient access and improve
connectivity to the regional transit system. Enhance the public image of the proposed
transit improvements. Build community and political support through effective
communication and integration with local and regional plans. Enhances the physical
environment wherever possible. Implement an alternative that minimizes adverse
impacts on the environment. Minimize air and noise pollution, vibration impacts,
disturbance of public facilities, traffic and parking impacts.
The company will be headed by the General Manager with the support of his
subordinates.
The Service
GRT Company is planning on reviving the railroad from Tutuban to Dagupan in
order to help the passengers to go along those provinces in a fast way with cheaper
price. The company aims to make the railroad more suitable to passengers especially to
the low - income class family and also to allow traveling of goods coming from these
provinces.
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The Market
Quality and safety traveling are the priorities of our services. Since there is
already a railroad track from Tutuban to Dagupan, our primary target market will be the
passengers going from Manila to Bulacan, Pampanga, Tarlac and Pangasinan and vice
versa for leisure or business purposes. The total population target is 631,351.
The Company’s Competitive Edge
Quality and safety is guaranteed to the passengers in their whole trip.
For a strong and reliable public mass transit.
Financing
Gicha Ressha Train will be financed by three investors with the capital of Php
10,000,000,000. The capital will be distributed for the current and long-term assets for
the operation of the company.
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MANAGEMENT
ASPECT
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MANAGEMENT ASPECT
This chapter tackles the organization act and evaluation requirements in
establishing business of any kind. This section focuses on different strategies and
policies to be established and implemented during the course of the business. Effective
organizational set-up made to be determined and define the duties and responsibilities
of every personnel and to delegate and define each power in performing their respective
assignments to attain the success of the business.
Filipinos are very known to be as family-oriented. Some are still living with their
parents even after they have their own families, and some get separated and tried to
live on their own, and some did travel to find for their future in the urban like Manila and
get stocked or chose to live in it. GRT Company is a company that aims to connect the
urban cities to the rural areas and provinces in the Northern part of the country by
reopening and reoperation of the late Northrail Line of Philippine National Railway. A
business can never be form without its founder and support. Management is the very
core of a business. They are the ones who’s running and leading the business into its
success, or into its loss.
THE COMPANY
The name of the company is Gicha Ressha Train Company. The name Gicha is
a Korean word meaning train. The name Ressha is a Japanese word meaning railroad.
The name Train comes from the word itself because the firm’s line of industry is about
railroad system. Translating the company’s name will be “Train Railroad Train” because
this company is all about the railroad system in the Philippines specifically the Northrail
Line of the Philippine National Railway or PNR. The founder of the company are mainly
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fanatics of the Korean and Japanese culture so they have chosen to use the foreign
languages of “train” and “railroad” to form the company’s name.
COMPANY LOGO
The logo will serve as the symbol of the company. In the figure below, the initials
are GRT and forming an image of a train. The initials stand for Gicha Ressha Train.
Figure 1 Company Logo
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COMPANY MISSION
GRT Company mission is to give the populace the benefit of using a fast, safe,
reliable, and cheaper mobility access to rural centers of the northern part of the country
through the development, reconstruction, and maintenance of the Northrail line of
Philippine National Railway system.
COMPANY VISION
GRT Company envisions itself to be the country’s successful and leading
transportation system that connects urban and rural areas, and mostly the people of
these areas.
COMPANY GOAL AND OBJECTIVES
Gicha Ressha Train Co. aims to reconstruct and reopen the North Main Line system
of Philippine National Railway or PNR Northrail that travel from Tutuban, Manila
(Terminal Station) crossing into different rural areas and provinces to Dagupan,
Pangasinan as the end terminal station, and vice versa.
 To reconstruct the late Northrail line of Philippine National Railway
 To operate the Northrail line of Philippine National Railway
 To maintain the operation of the Northrail line of Philippine National Railway
 To produce a fast, safe, reliable, and cheaper mode of transportation to the
country’s Northern provinces and areas
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COMPANY OWNERSHIP
The form of business organization Gicha Ressha Train Company chose was
General Partnership. In General Partnership, a business entity is made up of two or
more entities to carry on a trade or business. Each partner contributes money, property,
labor, or special skills and each partner shares in the profits and losses from the
business. In other words, each general partner takes part in the management of the
business, and also takes responsibility for the liabilities of the business. If one partner is
sued, all partners are held liable.
The business will be easy to practice and organize and will operate more
effectively and efficiently since two more persons are present for sharing ideas and
strategies to achieve company’s goals and objectives.
FORMING THE COMPANY
After the agreement of forming the business, it must comply with government
requirements for it to be legally established, and be operational. The following are the
common requirements and fees are imposed in forming a business.
1. Securities and Exchange Commission (SEC)
SEC is a Philippine state commission responsible for securities laws and
regulating the securities industry. Registration with the SEC is a requirement for
the issuance of licenses by the municipal or city government.
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The following are the requirements for the SEC registration:
a. Name Verification Slip
b. Accomplished Registration Data Sheet
c. Articles of partnership
2. Department of Trade and Industry (DTI)
One of DTI’s functions is to administer the registration of business names.
Business name registration is compulsory and must be completed before the
business starts operating. By registering the business name with the DTI, the
proprietor is assured that no other individual or group may legally use the
business name anywhere in the Philippines.
The following requirements should be fulfilled:
a. Registration Fee
b. SEC Certificate
c. Articles of partnership
3. Bureau of Internal Revenue (BIR)
For taxation purposes, every business has to register with the BIR before the
commencement of its operation. Any business should secure a company number
and shall register with appropriate Revenue District Office (RDO) which has
jurisdiction over the place where the main office is located. The company Tax
number is permanent and it is to be used by business firm for several business
purposes.
The registration procedures are the following:
a. Secure a permanent record file number of Tax Identification Number;
b. Register the business name with the BIR Revenue District Office; and
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c. Pay the prescribed fees
d. Apply for individual income tax return.
4. Municipal Permits or Licenses
All businesses are required to secure a mayor’s permit or municipal license
from the municipality or city where they are located.
The following permits and licenses are needed in starting a particular business:
a. Mayor’s Permit
b. Business Tax
c. Garbage Fee
d. Sanitary Permit
e. Signboards/Billboards
f. Electric Permit
The processing for the application of Mayor’s Permit, the requirement includes:
a. Photocopy of Articles of partnership
b. Photocopy of Certificates of SEC Registration
c. Photocopy of DTI Registration
d. Sanitary Permit secured from the municipal. Health Office that includes
sanitary fee and garbage fee
e. Fire Safety Permit
f. Building Permit from the City Engineer’s Office
g. Three (3) copies of business application form
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5. Social Security System (SSS) Registration
All companies must be registered with SSS and must secure an employer
number which will be used as a reference for the remittance of their monthly
contributions.
The forms needed for SSS registration are as follows:
a. Employer Registration Form (R-1)
b. Employment Report Form (R-1A)
c. SEC Registration
6. Phil-Health Registration
Phil-Health is the country’s Health Insurance Corporation. All employers
are required to register their employees with Phil-Health as stated in the New
National Health Insurance Act (RA 7875/RA 9241). This agency manages and
administers the government health care system in the Philippines.
The following documents are required by Phil-Health and as enumerated below:
a. Employer Data Record (ER1)
b. Report of Employee-Member (ER2)
c. SEC Registration
7. Pag-IBIG (Home Development Mutual Fund) Registration
Pag-IBIG Fund is also known as the Home Development Mutual Fund
which is mandatory for all employees covered by the Social Security System
(SSS). The Pag-IBIG Fund essentially provides various types of loans to the
members.
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BASIC REQUIREMENTS AND PROCEDURES IN REGISTERING A BUSINESS
1. Reserve and Register Your Business Name in Securities and Exchange
Commission (SEC), as follows:
 Check if your desired business name is available via SEC online website
or at SEC Office in Mandaluyong
 If available, register/reserve your business name via SEC online website
or at SEC Name Verification Unit – SEC Office in Mandaluyong
 Prepare, sign and notarize the following:
o Articles of partnership;
o By Laws
o Treasurer’s Affidavit; and
o Joint affidavit of two incorporators undertaking to change corporate
name immediately upon receipt of notice or directive from the
Securities and Exchange Commission that another corporation,
partnership, or person has acquired a prior right to the use of that
name or that name has been declared misleading, deceptive,
confusingly similar to a registered name, or contrary to public morals,
good customs or public policy. (Not required if the Articles of
Incorporation have a provision on this commitment).
 Submit notarized documents to SEC Office in Mandaluyong City
 Claim your SEC Certificate of Registration
Processing Time: At least one (1) week upon submission of complete
documents
2. Acquire Barangay Clearance
Once the corporation is registered with SEC the next step is to get a
barangay clearance in the barangay where your business is located.
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Here are the basic steps
 Go to the barangay where your business is located to secure and fill-up
application form
 Submit your completed application form together with the following:
o Certificate of Business Registration from SEC
o Two (2) valid IDs, Proof of Address such as Contract of Lease (if
rented) or Certificate of Land Title (if owned)
Processing Time: 1 day upon submission of complete documents.
3. Acquire Business Permit from the Mayor’s Office
Once you have a Barangay Clearance Certificate, the next step is to
acquire a Business Permit in the municipality where your business is located.
Here are the basic steps and requirements:
 Go to the municipal office where your business is located to secure and
fill-up application form
 Submit your completed application form together with the following:
o Certificate of Business Registration from SEC
o Barangay Clearance Certificate
o Two (2) valid IDs, Proof of Address such as Contract of Lease (if
rented) or Certificate of Land Title (if owned)
Processing Time: At least one week upon submission of complete documents.
But It can take longer depending on the permit requirements based on the
industry.
4. Register with the Bureau of Internal Revenue (BIR)
Once you have the Mayor’s Business Permit, you can now register with
the BIR.
Here are the basic steps and requirements:
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 Go to the Regional District Office (RDO) where your business is located
 Fill-up registration form as follows:
o BIR Form 1903 – Application for Registration (For
Partnership/Corporation)
 Submit completed registration form together with the following:
o Certificate of Registration form SEC
o Barangay Clearance
o Business Permit From the Mayor’s Office
o Proof of Address such as Contract of Lease (if rented) or Certificate of
Land Title (if owned)
o Valid IDs, if applicable.
 Pay the Registration Form (BIR Form 0605) and Documentary Stamp Tax
(BIR Form 2000), if applicable.
 Register your book of accounts and receipts/invoices.
 Claim your Certificate of Registration (BIR Form 2303)
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COMPANY LOCATION
The proposed location for the business office will be at 3F Natividad Bldg., T.M.
Kalaw St., Ermita, Manila. The 75 square meter floor area of the said establishment will
be chartered by the company for at least 20 years and/or with extension if needed.
Figure 2 Office Location
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OPERATING HOURS AND WORK SCHEDULES
The Gicha Ressha Train Company office will be operating from 8:00AM to
5:00PM every weekdays, Monday to Friday. Administrative employees will be having
morning break of 15-minutes break from 10:00AM, lunch break of 30 minutes from
12:00 noon, and another 15-minutes break from 2:45PM. Since the company is in
partnership with the Philippine National Railway administration, the employees require
to have a field work and site inspection to check for the progress of the project, an
employee has to file for an itinerary letter a day before the appointment date if he/she is
going on the field.
The GRT Company trains will be operating from 5:00 AM to 11:00 PM everyday,
Monday to Sunday. Employees or personnel from the stations like security guards,
ticket operators, and maintenance personnel are require to work a minimum of eight (8)
hours a day inclusive of their breaks. Lunch and break time are not too tight as long as
they follow the rules regarding the subject, and can perform task assigned to them.
Their schedules will be shifting basis so that the station will still be operational along the
day.
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ORGANIZATIONAL CHART
Figure 3 Organizational Chart
The figure shows the organizational structure of Gicha Ressha Train Corporation
from top to lower management who would run the company. The business is classified
as Corporation as agreed by the owners and due to the complexity of the purpose of the
project.
The General Manager will overlook to the company to reach its goals and serve
its purpose for greater good which will be supported by a Construction
Supervisor/Estimator, Financial Planner, Operations Engineer, Project Engineer Human
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Resource Manager and their assistants. Other personnel will be hired then for their
designated works such as Train Operators, Ticket Vendor, Maintenance Personnel, and
Security Guard.
JOB DESCRIPTIONS AND QUALIFICATIONS
 GENERAL MANAGER
Job Description
 Increases management's effectiveness by recruiting, selecting, orienting,
training, coaching, counseling, and disciplining managers; communicating
values, strategies, and objectives; assigning accountabilities; planning,
monitoring, and appraising job results; developing incentives; developing a
climate for offering information and opinions; providing educational
opportunities.
 Develops strategic plan by studying technological and financial opportunities;
presenting assumptions; recommending objectives.
 Accomplishes subsidiary objectives by establishing plans, budgets, and
results measurements; allocating resources; reviewing progress; making mid-
course corrections.
 Coordinates efforts by establishing procurement, production, marketing, field,
and technical services policies and practices; coordinating actions with
corporate staff.
 Builds company image by collaborating with customers, government,
community organizations, and employees; enforcing ethical business
practices.
 Maintains quality service by establishing and enforcing organization
standards.
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 Maintains professional and technical knowledge by attending educational
workshops; reviewing professional publications; establishing personal
networks; benchmarking state-of-the-art practices; participating in
professional societies.
 Contributes to team effort by accomplishing related results as needed.
Qualifications
 Male/Female, 30-35years old
 Graduate of Industrial Engineering or any managerial course
 With knowledge in Management Engineering
 Minimum of 3 years of experience in Managerial Position
 OPERATIONS MANAGER
Job Description
 Identifies operational problems by observing and studying system functioning
and performance results; investigating complaints and suggestions;
interviewing process supervisors and operators; completing troubleshooting
procedures.
 Identifies operational priorities by assessing operational objectives;
determining project objectives, such as, efficiency, cost savings, energy
conservation, operator convenience, safety, environmental quality; estimating
relevance, time, and costs.
 Develops operational solutions by defining, studying, estimating, and
screening alternative solutions; calculating economics; determining impact on
total system.
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 Anticipates operational problems by studying operating targets, modes of
operation, unit limitations; monitoring unit performance.
 Improves operational quality results by studying, evaluating, and
recommending process re-design; implementing changes; contributing
information and opinion to unit design and modification teams.
 Maintains safe and healthy work environment by following and enforcing
standards and procedures; complying with legal regulations.
 Provides operational management information by collecting, analyzing, and
summarizing operating and engineering data and trends.
 Updates job knowledge by participating in educational opportunities; reading
professional publications; maintaining personal networks; participating in
professional organizations.
 Accomplishes engineering and organization mission by completing related
results as needed.
Qualifications
 Male/Female, 25-35years old
 Graduate of Industrial Engineering or any managerial course
 With knowledge in Operations Research, Safety Management, Reporting
skills, or any related
 Minimum of 2 years of experience in related position
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 FIELD SUPERVISOR
Job Description
 Prepare daily production reports (passenger counts of the train)
 Assign and coordinate the daily task of laborers
 Report any field problems to the General Manager
Qualifications
 Male, 23-30 years old
 Graduate of Mechanical, or any related course
 With knowledge in Requirements Analysis, Design Skills, Project
Management, Manufacturing Methods and Procedures, Process
Improvement, Technical Understanding, Documentation Skills, Safety
Management, Supervision
 Service oriented and hardworking
 Good observation and reporting skills
 RAILWAY ENGINEER
Job Description
 Develops project objectives by reviewing project proposals and plans;
conferring with management.
 Determines project responsibilities by identifying project phases and
elements; assigning personnel to phases and elements; reviewing bids from
contractors.
 Determines project specifications by studying product design, customer
requirements, and performance standards; completing technical studies;
preparing cost estimates.
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 Confirms product performance by designing and conducting tests.
 Determines project schedule by studying project plan and specifications;
calculating time requirements; sequencing project elements.
 Maintains project schedule by monitoring project progress; coordinating
activities; resolving problems.
 Controls project plan by reviewing design, specifications, and plan and
schedule changes; recommending actions.
 Controls project costs by approving expenditures; administering contractor
contracts.
 Prepares project status reports by collecting, analyzing, and summarizing
information and trends; recommending actions.
 Maintains safe and clean working environment by enforcing procedures,
rules, and regulations.
 Maintains project data base by writing computer programs; entering and
backing up data.
 Maintains product and company reputation by complying with federal and
state regulations.
 Contributes to team effort by accomplishing related results as needed.
Qualifications
 Male/Female, 25-35years old
 Graduate of Industrial Engineering , Civil, Mechanical Engineering, or any
related course
 With knowledge in Requirements Analysis, Design Skills, Project
Management, Manufacturing Methods and Procedures, Process
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Improvement, Technical Understanding, Documentation Skills, Safety
Management, Supervision, CAD, CAD/CAM Circuit Design
 Minimum of 2 years of experience in related position
 ASSISTANT ENGINEER
Job Description
 Determines engineering requirements by conducting inspections and
analytical tests; analyzing and synthesizing data; maintaining control charts;
determining root causes; preparing bid specifications.
 Resolves engineering problems by collecting and analyzing information;
researching, analyzing, adapting, and modifying engineering techniques;
recommending solutions; preparing drawings, schematics, and diagrams;
evaluating components, materials, and suppliers; resolving design integration
issues; developing specifications and safety standards; performing
installations.
 Verifies engineering applications by conducting tests and inspections; building
and analyzing models and simulations; conducting laboratory experiments
and measurements.
 Maintains project team accomplishments by communicating essential
information; coordinating actions; obtaining expert input; reviewing open
issues and action items; contributing information to team meetings and
reports; escalating project completion impediments.
 Meets cost standards by preparing cost-benefit analyses; tracking and
reporting expenses.
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 Complies with codes and regulations by complying with requirements;
preparing permit applications, plans, and compliance reports.
 Prepares guidelines by describing operational and testing methods and
procedures.
 Maintains and improves quality results by completing quality assurance tests;
following standards; studying, evaluating, and re-designing processes;
implementing changes.
 Ensures operation of analytical equipment by calibrating equipment;
completing preventive maintenance requirements; following manufacturer's
instructions; troubleshooting malfunctions; calling for repairs; maintaining
equipment inventories; evaluating new equipment and techniques.
 Keeps supplies ready by inventorying stock; placing orders; verifying receipt.
 Prepares engineering reports by collecting, analyzing, and summarizing data
and trends; entering data and generating reports and presentations;
performing calculations.
 Updates job knowledge by tracking and understanding emerging engineering
practices; participating in educational opportunities and professional
organizations; reading professional publications; maintaining personal
networks.
 Enhances engineering and organization reputation by accepting ownership
for accomplishing new and different requests; exploring opportunities to add
value to job accomplishments.
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Qualifications
 Male/Female, 20-28 years old
 Graduate of Industrial Engineering , Civil, Mechanical Engineering or any
related course
 With knowledge in Analyzing Information , General Math Skills, Reporting
Research Results, Dealing with Complexity, Presentation Skills, Verbal
Communication, Written Communication, Drafting, Analytical Tools, Attention
to Detail, Innovation or any related
 No experience required
 Willingness to learn
 FINANCIAL PLANNER
Job Description
 Defines financial situtation by completing quantitative analyses.
 Evaluates optional plans by identifying outcomes and potential returns.
 Values assets by appraising current condition; assessing potential.
 Recommends debt structures by analyzing refinancing options.
 Builds financial database by identifying sources of information; assembling,
verifying, and backing up data.
 Accomplishes organization goals by accepting ownership for accomplishing
new and different requests; exploring opportunities to add value to job
accomplishments.
 Updates job knowledge by participating in educational opportunities; reading
professional publications; maintaining personal networks; participating in
professional organizations.
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 Recommends financial actions by assessing options in relation to
organization goals.
 Prepares financial reports by collecting, formatting, analyzing, and explaining
information.
 Protects operations by keeping financial information confidential.
 Maintains technical knowledge by attending educational workshops;
reviewing publications.
 Contributes to team effort by accomplishing related results as needed.
Qualifications
 Female, 25-30 years old
 Graduate of Accountancy or any related course
 With knowledge in Business Knowledge, Corporate Finance, Financial
Planning and Strategy, Forecasting, Accounting, Developing Budgets,
Analyzing Information , General Math Skills, Reporting Research Results,
Managing Profitability, Electronic Payment Technology Risk-Taking, Tracking
Budget Expenses, Financial Planning and Strategy, Statistical Analysis,
Reporting Research Results, Database Design, Strategic Planning,
Forecasting, Analyzing Information , Conceptual Skills, Financial Skills
 Minimum of 2 years of experience in related position
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 HUMAN RESOURCE MANAGER
Job Description
 Maintains the work structure by updating job requirements and job
descriptions for all positions.
 Maintains organization staff by establishing a recruiting, testing, and
interviewing program; counseling managers on candidate selection;
conducting and analyzing exit interviews; recommending changes.
 Prepares employees for assignments by establishing and conducting
orientation and training programs.
 Maintains a pay plan by conducting periodic pay surveys; scheduling and
conducting job evaluations; preparing pay budgets; monitoring and
scheduling individual pay actions; recommending, planning, and
implementing pay structure revisions.
 Ensures planning, monitoring, and appraisal of employee work results by
training managers to coach and discipline employees; scheduling
management conferences with employees; hearing and resolving employee
grievances; counseling employees and supervisors.
 Maintains employee benefits programs and informs employees of benefits by
studying and assessing benefit needs and trends; recommending benefit
programs to management; directing the processing of benefit claims;
obtaining and evaluating benefit contract bids; awarding benefit contracts;
designing and conducting educational programs on benefit programs.
 Ensures legal compliance by monitoring and implementing applicable human
resource federal and state requirements; conducting investigations;
maintaining records; representing the organization at hearings.
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 Maintains management guidelines by preparing, updating, and
recommending human resource policies and procedures.
 Maintains historical human resource records by designing a filing and retrieval
system; keeping past and current records.
 Maintains professional and technical knowledge by attending educational
workshops; reviewing professional publications; establishing personal
networks; participating in professional societies.
 Completes human resource operational requirements by scheduling and
assigning employees; following up on work results.
 Maintains human resource staff by recruiting, selecting, orienting, and training
employees.
 Maintains human resource staff job results by counseling and disciplining
employees; planning, monitoring, and appraising job results.
 Contributes to team effort by accomplishing related results as needed.
Qualifications
 Candidate must possess at least a Bachelor’s/College Degree in Psychology
or closely related field
 Male/Female 25-30 years old
 At least 2-3 years working experience in the related field
 Ability to communicate effectively both written and verbally
 With knowledge in Hiring, Human Resources Management, Benefits
Administration, Performance Management, Communication Processes,
Compensation and Wage Structure, Supports Diversity, Classifying
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Employees, Employment Law, Laws Against Sexual Harassment,
Organization
 HUMAN RESOURCE ADMINISTRATIVE ASSISTANT
Job Description
 Provides job candidates by screening, interviewing, and testing applicants;
notifying existing staff of internal opportunities; maintaining personnel records;
obtaining temporary staff from agencies.
 Pays employees by calculating pay; distributing checks; maintaining records.
 Administers student loan, medical insurance, savings bond, and disability
programs by advising employees of eligibility; providing application
information; helping with form completion; verifying submission; notifying
employees of approvals.
 Monitors unemployment claims by reviewing claims; substantiating
documentation; requesting legal counsel review.
 Maintains human resources records by recording new hires, transfers,
terminations, changes in job classifications, merit increases; tracking
vacation, sick, and personal time.
 Orients new employees by providing orientation information packets;
reviewing company policies; gathering withholding and other payroll
information; explaining and obtaining signatures for benefit programs.
 Documents human resources actions by completing forms, reports, logs, and
records.
 Updates job knowledge by participating in educational opportunities; reading
professional publications.
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 Accomplishes human resources department and organization mission by
completing related results as needed.
Qualifications
 Candidate must possess at least a Bachelor’s/College Degree in Psychology
or closely related field
 Male/Female 20-30 years old
 Ability to communicate effectively both written and verbally
 No experience required
 Willingness to learn
 TRAIN OPERATOR/DRIVER
Job Description
 Checking equipment and engines before a journey starts
 Contacting control centres for information about routes and any problems
 Following signalling instructions during the journey
 Making passenger announcements
 Controlling automatic doors
 Positioning and handing over engines to drivers on the next shift.
Qualifications
 High school diploma or equivalent.
 Must be at least 21 years of age.
 Professional driving experience within the last three years.
 Experience may include, but not be limited to, previous operation of light rail
vehicle, transit bus/school bus and/or truck. Not more than five (5) points
assessed against motor vehicle record (MVR) in the past two (2) years as
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well as possessing a continually valid driver's license for the past two (2)
years. Also no DUI, DWI, or reckless driving in the past 24 months.
 Ability to pass a Department of Transportation (DOT) physical examination by
obtaining a DOT Medical Examiner's Certificate for a minimum of a 2-year
qualifying period and then maintain a current DOT Medical Examiner's
Certificate thereafter.
 Ability to pass a RTD required Physical Ability Asssessment (PAA) related to
the physical requirements of the essential functions of the job.
 Ability to obtain and maintain a current valid Colorado Commercial Driver's
License with an air brake and passenger endorsement (Class B-P2). Ability to
successfully complete the LRV Operator Training Program in order to be
certified and retain a thorough understanding of all new rules and procedures
which are in effect.
 Ability to use prudent judgment and common sense in making quick, safe
decisions with minimal supervision and adapt to constantly changing
operating environments.
 Ability to effectively communicate, both orally and in writing, while interacting
with customers and RTD staff in a courteous, professional manner. This
includes providing good customer service by attending to the needs of a
diverse customer base in a sensitive manner.
 Strong customer service skills.
 Ability to read, write, and speak English. Demonstrated physical ability to
perform job duties to include: throwing rail switches, accessing and operating
LRV, operating accessibility ramp, coupling/uncoupling LRVs, and
raising/lowering LRV pantograph.
 Demonstrated ability to push/pull up to 125 pounds and lift/carry up to 60
pounds without assistance.
P a g e | 32
 Ability to walk on track ballast, on uneven ground, sit for an extended period
of time, and work in various outdoor weather.
 Ability to be re-certified periodically on standard operating procedures as well
as through examination on all Rules and as hands-on proficiency. Ability to
maintain a high performance level of dependability, reliability and safety as
demonstrated in the past six (6) months by:
o -No more than three (3) occurrences and three (3) tardies.
o -No more than eighty (80) hours unscheduled work absences.
o -Extenuating circumstances will be reviewed.
 Acceptable driving record as demonstrated in the past six (6) months by:
o -No 'at-fault' of Class A or B safety violations.
o -No suspensions for violations of rules or operating procedures
 Ability to work unusual hours, split shifts, weekends, holidays, and overtime
as required.
 CONSTRUCTION SUPERVISOR/ESTIMATOR
Job Description
 Accomplishes construction human resource objectives by selecting, orienting,
training, assigning, scheduling, coaching, counseling, and disciplining
employees; communicating job expectations; planning, monitoring, appraising
job contributions; recommending compensation actions; adhering to policies
and procedures.
 Manages sub-contractors by locating, evaluating, and selecting sub-
contractors; monitoring and controlling performance.
 Meets operational standards by contributing construction information to
strategic plans and reviews; implementing production, productivity, quality,
P a g e | 33
and customer-service standards; resolving problems; identifying construction
management system improvements.
 Meets construction budget by monitoring project expenditures; identifying
variances; implementing corrective actions; providing non-project annual
operating and capital budget information.
 Accomplishes construction project results by defining project purpose and
scope; calculating resources required; establishing standards and protocols;
allocating resources; scheduling and coordinating staff and sub-contractors;
evaluating milestone assumptions and conclusions; resolving design
problems; evaluating and implementing change orders.
 Approves construction projects by conducting inspections at critical phases;
obtaining approvals from buyers.
 Prevents fines and interruptions by complying with, and enforcing, codes.
 Maintains safe, secure, and healthy work environment by following and
enforcing standards and procedures; complying with legal regulations.
 Updates job knowledge by tracking and understanding emerging construction
practices and standards; participating in educational opportunities; reading
professional publications; maintaining personal networks; participating in
professional organizations.
 Enhances organization reputation by accepting ownership for accomplishing
new and different requests; exploring opportunities to add value to job
accomplishments.
 Prepares work to be accomplished by gathering information and
requirements; setting priorities.
P a g e | 34
 Prepares construction budget by studying home plans; updating
specifications; identifying and projecting costs for each elevation.
 Evaluates offers to purchase by costing changes, additions, and site
requirements.
 Obtains bids from vendors and subcontractors by specifying materials;
identifying qualified subcontractors; negotiating price.
 Maintains cost keys and price masters by updating information.
 Resolves cost discrepancies by collecting and analyzing information.
 Prepares special reports by collecting, analyzing, and summarizing
information and trends.
 Maintains quality service by following organization standards.
 Maintains continuity among corporate, division, and local work teams by
documenting and communicating actions, irregularities, and continuing needs.
 Maintains professional and technical knowledge by attending educational
workshops; reviewing professional publications; establishing personal
networks; participating in professional societies.
 Contributes to team effort by accomplishing related results as needed.
Qualifications
 Male, 25-35 years old
 Graduate of Civil, Mechanical Engineering, Architecture or any related course
 With knowledge in Project Management, Quality Management, Supervision,
Managing Profitability, Delegation, Supply Management, ADA Requirements,
Civil Project Management, Estimating, Attention to Detail, Quality Focus or
any related
P a g e | 35
 Minimum of 2 years of experience in related position
 TICKET OPERATOR
Job Description
 Responsible for selling tickets to customers
 Responsible reporting daily sales and bookkeeping
Qualifications
 Must be at least high school graduate
 Female, 18-30 years old
 Service oriented and hardworking
 Good customer communication and service skills
 SECURITY GUARD
Job Description
 Maintains security and safety of people and property in assigned area on
company by patrolling areas on foot and enforcing company rules and
regulation.
Qualifications
 Candidate must possess at least a Vocational Diploma / Short Course
Certificate, Protective Services & Management or equivalent.
 At least 2 year(s) of working experience in the related field is required for this
position.
 Applicants must be willing to work on any shift.
 Male, 25 - 40 years old
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 MAINTENANCE PERSONNEL (JANITOR/JANITRESS)
Job Description
 Sweep and mop floors.
 Cleaning trains and stations by emptying trash, sweeping, and cleaning
surfaces.
 Clean and disinfect laboratory equipment.
 Monitor establishment’s security and safety by performing such tasks as
locking doors after operating hours and checking electrical appliance use to
ensure that hazards are not created.
 Use cleaning solutions to remove stains and clean surfaces.
 Mix various cleaning agents.
 Clean windows, glass partitions, and mirrors, using soapy water or other
cleaners, sponges, and squeegees.
 Clean and service restrooms with mops and disinfectants.
 Identify and report possible repairs.
Qualifications
 Must be at least high school graduate
 Female, 18-30 years old
 Service oriented and hardworking
 Must be flexible and willing to work to any assigned shift
 Good customer service skills
P a g e | 37
MANAGEMENT POLICIES AND PROCEDURES
Every Policies and procedures are a vital part of business management because
it provides a baseline of internal control allows employees to understand their roles and
responsibilities within predefined limits. Basically, policies & procedures allow
management to guide operations without constant management intervention.
There are some conditions unique in our business which the employees cannot
be expected to know about unless the management calls their attention.
o Employees are expected to devote his/her time and energy toward the
performance of the duties and responsibilities assigned to him/her, which may be
changed at any time from time to time.
o Business transaction not related to work is prohibited within company premises.
o All employees are entitled to receive 60 minutes or 1 hour break daily.
o Smoking while on duty and in unauthorized places are prohibited.
Neatness and Uniform Policy
o Men are not allowed to grow their mustache and stubbles should be shaving as
soon as noticeable.
o All employees should wear proper uniform according to the rules. Employees
must wear company uniform every Monday, and Wednesday; and during field
work. Employees must wear casual attire every Tuesday, and Thursday.
Employees are free to use anything they desire to wear as long as it is
presentable.
o All employees should have clean hands and short fingernails.
Duty to Report/ Failing to Call
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o All employees have a duty to report any violations of the company policies and
procedures and while they initially be reluctant to get involved, it’s important to
note that failure to report violations can have substantial consequences. In
addition to the possibility of being held personally liable for the legal or ethical
violation, they may subject to disciplinary proceedings, including termination, so
when in doubt they should speak up.
Rules of Conduct
o Employees are required to obey instructions and perform works as required or
assigned. Any insubordination or failure to obey lawful instructions with regard to
work and behavior will result to disciplinary action.
o Employees should respect the person, rights and properties of all who work with
them, particularly our customers. Acts of, or even attempts to cause physical or
psychological harm, injury, damage, loss and situations to endanger safety well-
being of the above stated persons will be subjected to disciplinary action.
o Employees are not allowed to leave the job without permission or conduct
personal affair while on duty.
Security Policies
To further protect the company premises and employees working here, the
following guidelines have been set:
o All employees (on duty or not) shall have their bags inspected by the security
personnel before going in and when coming out.
o All items take out from the company office and business establishment should be
presented to the security personnel.
o All employees are oblige to follow the building’s rules and policies.
P a g e | 39
o Safety and security is a major concern for the company because it values its
employees and customer not only for productivity but for humanity. The
enterprise will be complying on different occupational safety and health
regulations and programs mandated by different government agencies. Fire
alarm, extinguishers and other safety measures will be placed in different areas
of the establishment
Drug Abuse Prevention Policy and Procedure
Because of the harmful effects of drug abuse on the physical and well- being of
its employee, the company is committed to maintain a drug free environment. In
keeping with this commitment, drug abuse is hereby prohibited in any form. The
company’s policy is to employ a work force free from use of dangerous drugs, either on
or off the job. It is, therefore, the company policy that an employee found with the
presence of dangerous drugs in his/her system, in possession of, using, selling, trading
or offering for sale dangerous drugs during work hours or company sponsored activities
or on company’s premises, vehicles and the like may be subject to disciplinary action.
Confidential Information
In consideration for providing the employee with confidential information, the
employee shall hold and treat all confidential information in strict confidence and will not
disclose in any manner whatsoever, in whole or in part and will not use the confidential
information without the company’s prior written the consent.
P a g e | 40
EMPLOYEE LEAVING RIGHTS
1. Service Incentive Leave
Under Article 95 of the Labor Code of the Philippines, an employee who
has rendered at least (1) one year of service in a company is entitled to five (5)
days leave of absence, with pay, every year.
The phrase “one year of service” of the employee means service within
twelve (12) months, whether continuous or broken, reckoned from the date the
employee started working. The period includes authorized absences, unworked
weekly rest days, and paid regular holidays. If through individual or collective
agreement, company practice or policy, the period of the working days is less
than twelve (12) months, said period shall be considered as one year for the
purpose of determining the entitlement to the service incentive leave.
The service incentive leave may be used for sick and vacation leave
purposes. The unused service incentive leave is commutable to its money
equivalent at the end of the year.
2. Maternity Leave
This benefit applies to all female members, whether married or unmarried,
of the Social Security System (SSS) who has paid at least 3 monthly
contributions in the twelve-month period immediately preceding the semester of
her childbirth or miscarriage. Members will be entitled to maternity leave benefit
of sixty (60) days in case of normal delivery or miscarriage, or seventy-eight (78)
days, in case of Caesarian section delivery, with benefits equivalent to one
hundred percent (100%) of the average daily salary credit of the employee as
defined under the law.
P a g e | 41
3. Paternity Leave
Paternity Leave is granted to all married male employees of a company.
The purpose of this benefit is to allow the husband to lend support to his wife
during her period of recovery and/or in nursing her newborn child. Usage of
Paternity Leave shall be after the delivery. The paternity leave shall be for seven
(7) calendar days, with full pay, consisting of basic salary and mandatory
allowances fixed by the Regional Wage Board, if any, provided that his pay shall
not be less than the mandated minimum wage.
4. Parental Leave for Solo Parent
Under RA 8972, Parental leave is a benefit granted to a solo parent to
enable him/her to perform parental duties and responsibilities where physical
presence is required. Employees that are considered as a solo parent and who
have rendered service of at least (1) one year to a company are entitled to 7
working days of leave.
5. Leave for Victims of Violence against Women and their Children
Based From RA 9262, Employees who fall under the definition of “Victims
of Violence against women and their children “or otherwise known as Republic
Act 9262 and who have submitted a certification of violence shall be entitled a
leave of ten (10) days with full pay, consisting of basic salary and mandatory
allowances . The leave benefit shall cover the days that the woman employee
has to attend to medical and legal concerns.
6. Sick Leave
Employees should have reasonable opportunities for time away from work
without loss of pay to handle illness, injury, legal quarantine and attending visits
with health care providers for themselves and immediate family members and
P a g e | 42
members of their household who are dependent upon them for care during
illness or injury. Full-time employees shall accrue seven and one-half (7.5) hours
of sick leave for each two (2) months of employment and an additional seven and
one-half (7.5) hours of sick leave for each four (4) months of employment.
7. Special Leave for Women
RA 9710 is an article for Special Leave for women. Special Leave is
granted to female employees, regardless of age and civil status, with
Gynecological disorders and who have rendered at least six (6) months
continuous aggregate employment service for the last twelve (12) months prior to
surgery. The employee shall be entitled of (2) two months leave with full pay
based on her gross monthly compensation.
8. Vacation Leave
Under a Vacation Leave, each full-time employee shall be given 5 paid
working days (40 hours) vacation at the end of the first year of continuous
employment and 10 paid working days (80 hours) vacation at the end of the
second year of continuous employment. After 5 years of continuous employment,
full-time employees will be eligible for 15 paid working days (120 hours) vacation.
Vacation leave may only be used in ½ day or whole day increments.
Termination / Employee Dismissal
Termination occurs when an employer or employee ends an employee's
employment with a particular employer. Termination can be voluntary or involuntary
depending on the circumstances.
P a g e | 43
In other instances of employment termination, the employment is terminated for a
reason which is given to the employee and stated in the termination letter. Termination
for cause can occur in such situations as:
o Violation of the company code of conduct or ethics policy,
o Unacceptable Personal Conduct
o Unsatisfactory Job Performance
o Failure to follow company policy,
o Violence or threatened violence,
o Gross and habitual neglect of duty,
o Fraud,
o Commission of a crime,
o Extreme insubordination,
o Sexual harassment, or
o Watching pornography online
Resignation from work will only take effect fifteen days after submission of
resignation letter and after the resigning employee complies with the company
clearance on accountabilities.
SALARIES AND WAGES
Monthly Salary
Minimum wage is given to direct and indirect employees, wages is according to
the Department of Labor and Employment: National Wages and Productivity
Commission, underlying the sector of Service, with 16 or more than number of
employees. Each classified position is assigned to a salary range that provides, based
on similar employment in the defined labor market: minimum, mid-point, and maximum
salary rates that are competitive with rates in the external labor market consistent with
P a g e | 44
the Enterprise’ ability to pay; and proper relationships within State government
employment to maintain internal equity. Employees such as, Janitors, Construction
Workers, Ticket Operators, and Security Guard will be paid in accordance to their
hourly rate. Direct employees will work 8 hours daily with 1 hour break, and an
overtime if needed.
Computation of Minimum Wage
(Maintenance Personnel, Ticket Operator, and Security Guard)
Minimum wage: PHP 451.00
Cost of Living Allowance: PHP 15.00
Rate per day:
(Wage/per day)+COLA= 451+15 = PHP 466.00
Annual Gross Salary
The annual gross salary of employees of GRT Corporation is consisting of
annual salary of an employee before deductions are made plus the 13th month pay.
GRT Corporation has different approach of the salary computation depending
on the working days of employees. Administrative or Office Employees have only 5
working days a week or a total of 270 days a year depending on the status of the
project, and for field workers/employees a total of 324 working days in a year. Every
employee will also receive a thirteenth month pay equivalent to their monthly salary
pay.
GRT Corporation will be allotting PHP 17,002,400.00 as the total salaries of its
employees per annum, inclusive of the thirteenth month pay.
P a g e | 45
Compensation
It’s a policy of the company to compensate its employees at a level sufficient to
encourage excellence of performance and to maintain the labor market
competitiveness necessary to recruit and retain a competent work force.
The pay period of GRT Corporation will be the usual cut-off which is on the 15th
and 30th day of the month. Employees are required to give the company their bank
account numbers to be able to conduct salary payments through bank transactions.
As for the construction labors, their salary or pay period will be on a weekly basis.
Work Pay
The minimum wage would be PHP 451.00 and integration of the P15
COLA under W.O. No. NCR-17 into the basic pay which sums up to PHP 466.00
Basic Pay
GRT Company basic payments will be ranging from the minimum wage of Php
430.00 to PHP 1,360.00 per day. Wage rates of the employees will vary due to the
extent of their responsibilities and the degree of educational attained.
Fringe Benefits
1. Employees are entitled to 13th month pay and bonuses one year after
the business has established.
2. Employees are entitled of a separation pay under article 283-284 of the
labor Code of the Philippines depending on the grounds of the company’s
termination policy.
3. Promotion opportunity – this is offered to employees who are excellent
performers, shows initiative and desire to advance. High rates of pay are
given for these extra responsibilities.
P a g e | 46
4. Philhealth – the Philhealth program provides benefits for the
hospitalization of the employees.
5. SSS Benefits – a social security contribution is required to include both
the employer and employees share.
Overtime Pay
Overtime pay refers to the additional compensation for work performed beyond
eight (8) hours a day
Back Pay
Back Pay is past wages and benefits (bonus, increment, overtime, etc.) to which
an employee is entitled either because of a retroactive increase or employment
practices (such as dismissal or denial of promotion) declared unlawful by a court or
tribunal.HR automatically deletes employee name from the payroll and therefore not
paid for the days worked from previous payroll to the day to resign. The pay computed
manually which sometimes takes a while because it has to be verified and approved
by the management.
P a g e | 47
SALARY BREAKDOWN
EMPLOYEE'S BASIC SALARY ANNUAL SALARY
POSITION
EMPLOYE
E #
HOURLY
RATE
DAILY
RATE
BASIC
SALARY
2015 2016 2017 2018 2019 2020
Administrative Labor 3 Stations 6 Stations 9 Stations
General Manager 1 166.67
1,333.3
3
40,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00
Operations Engineer 1 137.50
1,100.0
0
33,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00
Project Engineer 1 137.50
1,100.0
0
33,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00
Assistant Engineer 1 95.83 766.67 23,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00
Construction
Supervisor/Estimator
1 137.50
1,100.0
0
33,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00
HR Manager 1 116.67 933.33 28,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00
HR Administrative
Assistant
1 95.83 766.67 23,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00
Financial Planning Analysts 1 116.67 933.33 28,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00
Direct Labor
Ticket Operator 36 58.25 466.00 13,980.00
2,013,120.0
0
4,026,240.00 9,772,020.00 6,039,360.00 6,039,360.00
Train Driver 9 62.50 500.00 15,000.00 540,000.00 1,080,000.00 1,620,000.00 1,620,000.00 1,620,000.00
Indirect Labor
Security Guards 36 58.25 466.00 13,980.00
2,013,120.0
0
4,026,240.00 9,772,020.00 6,039,360.00 6,039,360.00
Janitors/Janitress 36 58.25 466.00 13,980.00
2,013,120.0
0
4,026,240.00 9,772,020.00 6,039,360.00 6,039,360.00
TOTAL 125
1,241.4
2
9,931.3
3
297,940.0
0
2,892,000.0
0
9,471,360.0
0
16,050,720.0
0
33,828,060.0
0
22,630,080.0
0
22,630,080.0
0
Table 1.1 Employee’s Basic Salar
P a g e | 48
ANNUAL PROJECTION OF EMPLOYEE'S SALARIES
POSITION
EMPLOYEE
#
BASIC
SALARY
2015 2016 2017 2018 2019 2020
Administrative Labor 3 Stations 6 Stations 9 Stations
General Manager 1 40,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00
Operations Engineer 1 33,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00
Project Engineer 1 33,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00
Assistant Engineer 1 23,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00
Construction
Supervisor/Estimator
1 33,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00
HR Manager 1 28,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00
HR Administrative Assistant 1 23,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00
Financial Planning Analysts 1 28,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00
Direct Labor
Ticket Operator 36 13,980.00 2,013,120.00 4,026,240.00 6,039,360.00 6,039,360.00 6,039,360.00
Train Driver 9 15,000.00 540,000.00 1,080,000.00 1,620,000.00 1,620,000.00 1,620,000.00
Indirect Labor
Security Guards 36 13,980.00 2,013,120.00 4,026,240.00 6,039,360.00 6,039,360.00 6,039,360.00
Janitors/Janitress 36 13,980.00 2,013,120.00 4,026,240.00 6,039,360.00 6,039,360.00 6,039,360.00
TOTAL 125 297,940.00 2,892,000.00 9,471,360.00 16,050,720.00 22,630,080.00 22,630,080.00 22,630,080.00
Table 1.2 Annual Projection of Employee’s Salary
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EMPLOYEE'S 13th MONTH PAY
POSITION
EMPLOYEE
#
BASIC
SALARY
2015 2016 2017 2018 2019 2020
Administrative Labor 3 Stations 6 Stations 9 Stations
General Manager 1 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00
Operations Engineer 1 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00
Project Engineer 1 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00
Assistant Engineer 1 23,000.00 23,000.00 23,000.00 23,000.00 23,000.00 23,000.00 23,000.00
Construction
Supervisor/Estimator
1 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00
HR Manager 1 28,000.00 28,000.00 28,000.00 28,000.00 28,000.00 28,000.00 28,000.00
HR Administrative Assistant 1 23,000.00 23,000.00 23,000.00 23,000.00 23,000.00 23,000.00 23,000.00
Financial Planning Analysts 1 28,000.00 28,000.00 28,000.00 28,000.00 28,000.00 28,000.00 28,000.00
Direct Labor
Ticket Operator 36 13,980.00 167,760.00 335,520.00 503,280.00 503,280.00 503,280.00
Train Driver 9 15,000.00 45,000.00 90,000.00 135,000.00 135,000.00 135,000.00
Indirect Labor
Security Guards 36 13,980.00 167,760.00 335,520.00 503,280.00 503,280.00 503,280.00
Janitors/Janitress 36 13,980.00 167,760.00 335,520.00 503,280.00 503,280.00 503,280.00
TOTAL 125 297,940.00 241,000.00 789,280.00 1,337,560.00 1,885,840.00 1,885,840.00 1,885,840.00
Table 1.3 Employee’s 13th
Month Pay
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SALARY WITH DEDUCTIONS
Salary deductions are mandated fees collected by the government. These are deductions collected from the
employee's income and are used to give benefits and loans to employees. GRT Corporation will be participating in this
legal responsibilities to ensure the future of its employees.
 SSS or the Social Security System is one of the deductions in employee's income. The collected deduction from
employees is submitted to the Social Security system. The fees collected from the employees are accumulated,
and in time mandated by the government agency, loans are made available to members.
 Philhealth Contribution is another contribution collected from the employees. These contributions are intended for
the employee's health welfare. When emergency times come, Philhealth provides discounts and medical benefits
to help in employee's medical needs.
 Pag-ibig fund contribution is also deducted from employee's salary. In return, employees are given loan privileges
for housing purposes.
 Withholding Taxes Withholding taxes are individual taxes coming from each employee. These taxes are given to
the government. The percentage of deduction for each employee will be based on the individual's salary as well on
the number qualified dependents.
o Net pay of labors are the amount that retained in the salary of the workers after the deduction from SSS,
Philhealth, Pag-ibig, and Withholding Tax are made.
P a g e | 51
EMPLOYEES BASIC SALARY WITH DEDUCTIONS
POSITION
BASIC
SALARY
GROSS
PAY
DEDUCTIONS
NET PAY
SSS
CONTRIBUTIO
N
PHILHEALTH
CONTRIBUTIO
N
PAG-IBIG
CONTRIBUTIO
N
WITHOLDIN
G TAX
Administrative Labor
General Manager 40,000.00 40,000.00 581.30 437.50 800.00 8,331.03 29,850.17
Operations Engineer 33,000.00 33,000.00 581.30 412.50 660.00 6,238.53 25,107.67
Project Engineer 33,000.00 33,000.00 581.30 412.50 660.00 6,238.53 25,107.67
Assistant Engineer 23,000.00 23,000.00 581.30 287.50 460.00 3,424.55 18,246.65
Construction
Supervisor/Estimator
33,000.00 33,000.00 581.30 412.50 660.00 6,238.53 25,107.67
HR Manager 28,000.00 28,000.00 581.30 350.00 560.00 4,757.28 21,751.42
HR Administrative
Assistant
23,000.00 23,000.00 581.30 287.50 460.00 3,424.55 18,246.65
Financial Planning
Analysts
28,000.00 28,000.00 581.30 350.00 560.00 4,757.28 21,751.42
Direct Labor
Ticket Operator 13,980.00 13,980.00 508.70 162.50 100.00 1,350.09 11,858.71
Train Driver 15,000.00 15,000.00 545.00 187.50 300.00 1,514.57 12,452.93
Indirect Labor
Security Guards 13,980.00 13,980.00 508.70 162.50 100.00 1,350.09 11,858.71
Janitors/Janitress 13,980.00 13,980.00 508.70 162.50 100.00 1,350.09 11,858.71
TOTAL
297,940.0
0
297,940.0
0
6,721.50 3,625.00 5,420.00 48,975.12
233,198.3
8
Table 2.1 Employee’s Basic Salary Deductions
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EMPLOYEE'S SSS CONTRIBUTION
POSITION
EMPLOYEE
#
BASIC
SALARY
SSS MONTHLY
CONTRIBUTION
2015 2016 2017 2018 2019 2020
Administrative Labor
General Manager 1 40,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60
Operations Engineer 1 33,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60
Project Engineer 1 33,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60
Assistant Engineer 1 23,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60
Construction
Supervisor/Estimator
1 33,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60
HR Manager 1 28,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60
HR Administrative Assistant 1 23,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60
Financial Planning Analysts 1 28,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60
Direct Labor
Ticket Operator 36 13,980.00 508.70 73,252.80 146,505.60 219,758.40 219,758.40 219,758.40
Train Driver 9 15,000.00 545.00 19,620.00 39,240.00 58,860.00 58,860.00 235,440.00
Indirect Labor
Security Guards 36 13,980.00 508.70 73,252.80 146,505.60 219,758.40 219,758.40 219,758.40
Janitors/Janitress 36 13,980.00 508.70 73,252.80 146,505.60 219,758.40 219,758.40 219,758.40
TOTAL 125 297,940.00 55,804.80 295,183.20 534,561.60 773,940.00 773,940.00 950,520.00
Table 2.3 Employee’s SSS Contribution
P a g e | 53
EMPLOYER'S SSS CONTRIBUTION
POSITION
EMPLOYE
E #
BASIC
SALARY
SSS MONTHLY
CONTRIBUTIO
N
2015 2016 2017 2018 2019 2020
Administrative Labor
General Manager 1 40,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40
Operations Engineer 1 33,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40
Project Engineer 1 33,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40
Assistant Engineer 1 23,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40
Construction
Supervisor/Estimator
1 33,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40
HR Manager 1 28,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40
HR Administrative
Assistant
1 23,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40
Financial Planning
Analysts
1 28,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40
Direct Labor
Ticket Operator 36 13,980.00 1,031.30
148,507.2
0
297,014.40 445,521.60 445,521.60 445,521.60
Train Driver 9 15,000.00 1,105.00 39,780.00 79,560.00 119,340.00 119,340.00 477,360.00
Indirect Labor
Security Guards 36 13,980.00 1,031.30
148,507.2
0
297,014.40 445,521.60 445,521.60 445,521.60
Janitors/Janitress 36 13,980.00 1,031.30
148,507.2
0
297,014.40 445,521.60 445,521.60 445,521.60
TOTAL 125
297,940.0
0
113,155.2
0
598,456.8
0
1,083,758.4
0
1,569,060.0
0
1,569,060.0
0
1,927,080.0
0
Table 2.4 Employer’s SSS Contribution
P a g e | 54
EMPLOYEE'S PHILHEALTH CONTRIBUTION
POSITION
EMPLOYEE
#
BASIC
SALARY
PHILHEALTH
MONTHLY
CONTRIBUTION
2015 2016 2017 2018 2019 2020
Administrative Labor
General Manager 1 40,000.00 437.50 5,250.00 5,250.00 5,250.00 5,250.00 5,250.00 5,250.00
Operations Engineer 1 33,000.00 412.50 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00
Project Engineer 1 33,000.00 412.50 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00
Assistant Engineer 1 23,000.00 287.50 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00
Construction
Supervisor/Estimator
1 33,000.00 412.50 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00
HR Manager 1 28,000.00 350.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00
HR Administrative Assistant 1 23,000.00 287.50 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00
Financial Planning Analysts 1 28,000.00 350.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00
Direct Labor
Ticket Operator 36 13,980.00 162.50 23,400.00 46,800.00 70,200.00 70,200.00 70,200.00
Train Driver 9 15,000.00 187.50 6,750.00 13,500.00 20,250.00 20,250.00 81,000.00
Indirect Labor
Security Guards 36 13,980.00 162.50 23,400.00 46,800.00 70,200.00 70,200.00 70,200.00
Janitors/Janitress 36 13,980.00 162.50 23,400.00 46,800.00 70,200.00 70,200.00 70,200.00
TOTAL 125 297,940.00 35,400.00 112,350.00 189,300.00 266,250.00 266,250.00 327,000.00
Table 2.6 Employee’s PhilHealth Contribution
P a g e | 55
EMPLOYER'S PHILHEALTH CONTRIBUTION
POSITION
EMPLOYEE
#
BASIC
SALARY
PHILHEALTH
MONTHLY
CONTRIBUTION
2015 2015 2016 2017 2018 2019
Administrative Labor
General Manager 1 40,000.00 437.50 5,250.00 5,250.00 5,250.00 5,250.00 5,250.00 5,250.00
Operations Engineer 1 33,000.00 412.50 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00
Project Engineer 1 33,000.00 412.50 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00
Assistant Engineer 1 23,000.00 287.50 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00
Construction
Supervisor/Estimator
1 33,000.00 412.50 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00
HR Manager 1 28,000.00 350.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00
HR Administrative Assistant 1 23,000.00 287.50 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00
Financial Planning Analysts 1 28,000.00 350.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00
Direct Labor
Ticket Operator 36 13,980.00 162.50 23,400.00 46,800.00 70,200.00 70,200.00 70,200.00
Train Driver 9 15,000.00 187.50 6,750.00 13,500.00 20,250.00 20,250.00 81,000.00
Indirect Labor
Security Guards 36 13,980.00 162.50 23,400.00 46,800.00 70,200.00 70,200.00 70,200.00
Janitors/Janitress 36 13,980.00 162.50 23,400.00 46,800.00 70,200.00 70,200.00 70,200.00
TOTAL 125 297,940.00 35,400.00 112,350.00 189,300.00 266,250.00 266,250.00 327,000.00
Table 2.6 Employer’s PhilHealth Contribution
P a g e | 56
EMPLOYEE'S PAG-IBIG CONTRIBUTION
POSITION
EMPLOYEE
#
BASIC
SALARY
PAG-IBIG
MONTHLY
CONTRIBUTION
2015 2015 2016 2017 2018 2019
Administrative Labor
General Manager 1 40,000.00 800.00 9,600.00 9,600.00 9,600.00 9,600.00 9,600.00 9,600.00
Operations Engineer 1 33,000.00 660.00 7,920.00 7,920.00 7,920.00 7,920.00 7,920.00 7,920.00
Project Engineer 1 33,000.00 660.00 7,920.00 7,920.00 7,920.00 7,920.00 7,920.00 7,920.00
Assistant Engineer 1 23,000.00 460.00 5,520.00 5,520.00 5,520.00 5,520.00 5,520.00 5,520.00
Construction
Supervisor/Estimator
1 33,000.00 660.00 7,920.00 7,920.00 7,920.00 7,920.00 7,920.00 7,920.00
HR Manager 1 28,000.00 560.00 6,720.00 6,720.00 6,720.00 6,720.00 6,720.00 6,720.00
HR Administrative Assistant 1 23,000.00 460.00 5,520.00 5,520.00 5,520.00 5,520.00 5,520.00 5,520.00
Financial Planning Analysts 1 28,000.00 560.00 6,720.00 6,720.00 6,720.00 6,720.00 6,720.00 6,720.00
Direct Labor
Ticket Operator 36 13,980.00 100.00 14,400.00 28,800.00 43,200.00 43,200.00 43,200.00
Train Driver 9 15,000.00 300.00 10,800.00 21,600.00 32,400.00 32,400.00 129,600.00
Indirect Labor
Security Guards 36 13,980.00 100.00 14,400.00 28,800.00 43,200.00 43,200.00 43,200.00
Janitors/Janitress 36 13,980.00 100.00 14,400.00 28,800.00 43,200.00 43,200.00 43,200.00
TOTAL 125 297,940.00 57,840.00 111,840.00 165,840.00 219,840.00 219,840.00 317,040.00
Table 2.7 Employee’s PAG-IBIG Fund Contribution
P a g e | 57
EMPLOYEE'S WITHOLDING TAX
POSITION
EMPLOYE
E #
BASIC
SALARY
MONTHLY
WITHOLDIN
G TAX
2015 2016 2017 2018 2019 2020
Administrative Labor
General Manager 1 40,000.00 8,331.03 99,972.36 99,972.36 99,972.36 99,972.36 99,972.36 99,972.36
Operations Engineer 1 33,000.00 6,238.53 74,862.36 74,862.36 74,862.36 74,862.36 74,862.36 74,862.36
Project Engineer 1 33,000.00 6,238.53 74,862.36 74,862.36 74,862.36 74,862.36 74,862.36 74,862.36
Assistant Engineer 1 23,000.00 3,424.55 41,094.60 41,094.60 41,094.60 41,094.60 41,094.60 41,094.60
Construction
Supervisor/Estimator
1 33,000.00 6,238.53 74,862.36 74,862.36 74,862.36 74,862.36 74,862.36 74,862.36
HR Manager 1 28,000.00 4,757.28 57,087.36 57,087.36 57,087.36 57,087.36 57,087.36 57,087.36
HR Administrative
Assistant
1 23,000.00 3,424.55 41,094.60 41,094.60 41,094.60 41,094.60 41,094.60 41,094.60
Financial Planning
Analysts
1 28,000.00 4,757.28 57,087.36 57,087.36 57,087.36 57,087.36 57,087.36 57,087.36
Direct Labor
Ticket Operator 36 13,980.00 1,350.09 194,412.96 388,825.92 583,238.88 583,238.88 583,238.88
Train Driver 9 15,000.00 1,514.57 54,524.52 109,049.04 163,573.56 163,573.56 654,294.24
Indirect Labor
Security Guards 36 13,980.00 1,350.09 194,412.96 388,825.92 583,238.88 583,238.88 583,238.88
Janitors/Janitress 36 13,980.00 1,350.09 194,412.96 388,825.92 583,238.88 583,238.88 583,238.88
TOTAL 125
297,940.0
0
520,923.3
6
1,158,686.7
6
1,796,450.1
6
2,434,213.5
6
2,434,213.5
6
2,924,934.2
4
Table 2.8 Employee’s Withholding Tax
P a g e | 58
REGULAR PAID HOLIDAY
Holiday Pay
Holiday pay refers to the payment of the regular daily wage for any unworked
regular holiday.Employees covered by the holiday pay rule are entitled to their basic
wage for any non-working regular holiday. Employees who would be working for the
said holiday will have a double pay.
Pursuant to the provisions of the Labor Code, as amended in relation to the
observance of declared holidays and in response to the queries received every time a
Presidential Proclamation or a law is enacted by Congress which declares certain
days either as a regular holiday, a special day or a special working holiday, the
following guidelines shall be observed by all employers in the private sector:
Unless otherwise modified by law, order, or proclamation, the following are the
twelve (12) regular holidays in a year under Executive Order No. 292, as amended by
Republic Act 9849:
o New Year’s Day - January 1
o Maundy Thursday - Movable Date
o Good Friday - Movable Date
o Araw ng Kagitingan - April 9
o Labor Day - May 1
o Independence Day - June 12
o National Heroes’ Day - Last Monday of August
o Bonifacio Day - November 30
o Eid’l Fitr - Movable Date
o Eid’l Adha - Movable Date
o Christmas Day - December 25
o Rizal Day - Monday nearest December 30
P a g e | 59
The following rules shall apply:
1. If it is an employee’s regular workday
o If unworked – 100%
o If worked:
 1st 8 hours – 200%
 excess of 8 hours – plus 30% of hourly rate on said day
2. If it is an employee’s rest day
o If unworked – 100%
o If worked
 1st 8 hours – plus 30% of 200%
 excess of 8 hours – plus 30% of hourly rate on said day
Premium Pay
Premium pay refers to the additional compensation for work performed within
eight (8) hours on non-work days, such as rest days and special days.
Unless otherwise modified by law, order, or proclamation, the following are the
three (3) special days in a year under Executive Order No. 292, as amended by
Republic Act 9849 that shall be observed in the Philippines:
o Ninoy Aquino Day - August 21
o All Saints Day - November 1
o Last Day of the Year - December 31
The following rules shall apply:
1. If unworked
o No pay, unless there is a favorable company policy, practice or
collective bargaining agreement (CBA) granting payment of wages on
special days even if unworked.
P a g e | 60
2. If worked
o 1st 8 hours – plus 30% of the daily rate of 100%
o excess of 8 hours – plus 30% of hourly rate on said day
o Falling on the employee’s rest day and if worked
o 1st 8 hours – plus 50% of the daily rate of 100%
o excess of 8 hours – plus 30% of hourly rate on said day
For those declared as special working holidays, the following rules shall apply:
o For work performed, an employee is entitled only to his basic rate. No
premium pay is required since work performed on said days is
considered work on ordinary working days.
Professional Fee
The company will have an On-Call CPA Consultant that will be paid PHP
8,000.00 quarterly.
PROFESSIONAL FEE FOR ON-CALL CPA CONSULTANT
2015 2016 2017 2018 2019
Annual Gross Pay 32,000.00 32,960.00 33,948.80 34,967.26 36,016.28
Withholding Tax 11,317.56 11,657.09 12,006.80 12,367.00 12,738.01
Annual Net Pay 20,682.44 21,302.91 21,942.00 22,600.26 23,278.27
Table 4.1 Professional Fee for On-Call CPA Consultant
The company will hire a Construction Supervisor/Estimator until the project
(rebuilding of Northrail transit which is from Tutuban, Manila to Dagupan, Pangasinan)
is complete which is projected to be done on 2018. He will be paid PHP 33,000.00
monthly.
P a g e | 61
PROFESSIONAL FEE FOR CONSTRUCTION SUPERVISOR/ESTIMATOR
2015 2016 2017 2018
Annual Gross Pay 396,000.00 396,000.00 396,000.00 396,000.00
Deductions (SSS,
Philhealth, Pag-
ibig)
19,845.60 19,845.60 19,845.60 19,845.60
Withholding Tax 74,862.36 74,862.36 74,862.36 74,862.36
Annual Net Pay 301,292.04 301,292.04 301,292.04 301,292.04
Table 4.2 Professional Fee for Construction Supervisor/Estimator
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BUSINESS TIMELINE
Prior to the actual business operation, it is part of the process to fulfill the necessary pre-operating requirements
and the responsibilities. In order to do this, the company recognized organizational structure from selection of business
supported with a feasibility study and the following company activities that will support the legality, manpower
requirements, safe and engineered facility, competitiveness and strong market impact of the company.
The proponents use Gantt chart to show the scheduling of company activities from selecting a business to be
established up to the normal start of operation.
P a g e | 63
BUSINESS TIMELINE
ACTIVITY
2015 2015
201
6
2017 2018
JULY AUGUST
SEPTEM
BER
OCTOBE
R
NOVEM
BER
DECEMBE
R
JANUARY
FEBRUA
RY
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
2014 -
2015
1
2015 -
2016
1
2017 -
2018
1 2 3 4
1 Selection of business.
2 Feasibility study of business.
3 Canvassing of office furniture,
supplies, and equipment.
4 Registration of business.
5 Purchasing of office furniture,
supplies, and equipment.
6 Hiring, orientation, and training of
business administration and
construction firm.
7 Reconstruction of establishment.
8 Start of operation.
9 Reconstruction of establishment.
8 Start of operation.
11 Reconstruction of establishment.
12 Regular operations.
P a g e | 64
MANAGEMENT ASSUMPTIONS
The following assumptions were made in order to compute the administrative
expenses:
 The proponents assume that there are 15 holidays in a year; 12 regular
holidays and 3 special holidays under Executive Order No. 292 as amended
by RA 9849.
 The proponents based the SSS contribution of the employees on the current
SSS Contribution table.
 The proponents based the PhilHealth contribution of employees on the
current PhilHealth Contribution Table.
 The proponents used the fixed P 100.00 HDMF Contribution for minimum
wage earner-employees only, and 2% rate of basic salary for others.
 The proponents assume that in a year, there will be 3 stations that are
built/finished and will be operational.
P a g e | 65
MARKETING ASPECT
P a g e | 66
Marketing Aspect
The marketing aspect of the feasibility aspect will consider the major nature of
business, service description, the marketplace and industrial analysis and the marketing
strategy. Demand and supply will be analyzed to know the target market shares.
Service Description
Gicha Ressha Train Company manages Manila – Dagupan railroad which cover
major towns: Bulacan, Pampanga, Tarlac and Pangasinan from Manila and vice versa.
Our train will provide own comfortable seats and own air-condition. Quality and
safety is guaranteed to the passengers in their whole trip. Upon entering the stations,
there will be reliable security guards roaming around and responsible to provide quality
customer service that they need. Ticket vending machines and ticket booths are
available to easy access magnetic card train ticket.
To further increase customer satisfaction, the company is assured that
passengers are at ease in traveling. Gicha Ressha Train (GRT) will strive to build a
loyal customer service by offering a great facility during waiting and during the ride from
Manila to Dagupan City.
Market Comparison
Buses will be the direct competitors of Manila – Dagupan Railroad base on
routes. Presently, they are the one providing transportation for passengers who to travel
to Northern Luzon.
P a g e | 67
Industry Analysis
Philippines’ railroad transportation can be considered as a developing mode of
transportation. Picture below shows (fig. 1) the growing phase of railroad transportation.
However, most of the routes are only in inter-city.
Figure 4 Transit System Map
P a g e | 68
According to the National Statistical Coordination Board (NSCB) in 2009, 74.7%
of the population belongs to low – income class family that earns an average of P9,061
per month. They can’t afford to buy luxury goods like cars, apple gadgets and etc.
During peak seasons: Holy Week, All Saint’s Day, All Souls Day, Christmas and New
Year, normally people travel to provinces. As of now, buses are usually used mode of
transportation that travels to Northern Luzon. A bus has a normal capacity of 50 or more
seats for passengers.
Figure 2 shows how frequently people travel to Northern Luzon using bus. 35%
went to their provinces once a month. 28.05% said they travel to Northern Luzon once a
year. 20.50% of the population travels every week. 16% travel seldom, occasionally,
twice or thrice a year.
Base on buses fare, Manila to Dagupan back and forth in ordinary bus is 552 and
700 pesos back and forth in air – conditioned buses. Passengers usually encounter
20.50%
35%
28.50%
16%
Every Week
Once a month
Once a year
Others
Figure 5 Percentage of how often people travel using bus
P a g e | 69
problems such as high fare, traffic, sudden malfunction, long waiting time, accidents and
long travel time.
Bus Travel Time
From To Distance
Time
Via
With Traffic No Traffic
Cubao Bocaue 26.1 km 2 hrs 1 hr 10min
Sapang
Palay-Sta
Cruz D.
Jose via Sta
Maria
Cubao Malolos 42.5 km 3 hrs 2h 34 min
Baclaran-
SM Fairview
via Quezon
Avenue and
Manila -
Banaue
Cubao
San
Fernando
80.3 km 3hrs 2h 5 min
Avenida -
Balanga
Cubao Angeles 92.8 km 3 hrs 2h 32 mins
Avenida -
Dau
Cubao Capas 118.3 km 3 hrs 2 hr 30 mins
Cubao -
Tarlac
Cubao Tarlac 131.5 km 4 hrs 3 hr 41 mins
Espana Blvd
- Candon
City and
Cubao Bayambang 179.9 km 6 hrs 5hr 41 mins
Avenida -
Baguio and
Aurora Blvd
- San Carlos
City
Cubao Dagupan 214 km 8 hrs 6hr 52 mins
Avenida –
Baguio
And
Cubao -
Dagupan
Table 1 Time Flow of Bus
P a g e | 70
Figure 6 Bus in the Philippines with 50 seats
Figure 7 Industrial Framework
P a g e | 71
Market Analysis
People using trains have shown steady growth. People traveling to Northern
Luzon are the one who will the company foresee to serve. The total target population is
881,651.
Location Population
Percentage of Willing to Ride
the train
Total
Tutuban 233,240 20.78% 183,240
Bocaue 86,994 5.69% 50,156
Malolos 112,375 10.48% 92,375
Capas 125,852 9.44% 83,211
Tarlac 143,600 14.70% 129,600
San
Fernando
150,762 10.86% 95,762
Angeles 208,268 11.03% 97,268
Bayambang 111,521 6.07% 53,497
Dagupan 163,676 10.95% 96,542
Total 1,336,288 100.00% 881,651
To determine the projected population for years 2015 – 2019, an average growth
rate of 1.90% was used. Table 15 shows the projected population for the next five
years.
Year Target Population
2015 898,402
2016 915,472
2017 932,866
2018 950,590
2019 968,652
Table 3 Projected Population
Bus companies are currently the available and serving the market. For now, they
have the ability of mass transportation going from Manila to Dagupan and vice versa.
Table 2 Total Population for the Year 2014
P a g e | 72
The proponents conducted a survey to 400 respondents that represent the total
population if the target market. Slovin’s Formula was used to determine the sample size
with 5% margin of error. For the computation of sample size, see appendices.
Demand Analysis
Figure 5 shows the mode of transportation used by passengers going to Northern
Luzon. The research shows 85.50% of the population used buses. 8.75% responded
that they travel using their private cars. 5.75% used jeepneys in going to Northern
Luzon.
8.75%
85.50%
5.75%
Cars
Buses
Jeepneys
Figure 8 Mode of Transportation going to Northern Luzon
P a g e | 73
Year
Target
Population
% of
Population
who are
willing to
ride train
Market
Acceptability
Potential
Target
Market
Percentage Frequency Annual Demand
Total Annual
DemandEvery
Week
Once a
month
Once a
year
Others Every Week
Once a
month
Once a
year
Others
2014 881,651 47.25% 71.25% 296,813.32 20.50% 35.00% 28.50% 16.00% 3,285,723.45 1,246,615.94 84,591.80 189,960.52 4,806,891.71
Table 4 Annual Demand for Manila - Dagupan Railroad Usag
P a g e | 74
Table 4 shows the demand for railroad transportation in the year 2014; the potential target market is calculated by
multiplying the target population to the percentage of population who are willing to use a train and market acceptability.
Annual demand is the product of potential target market, percentage of how people often use bus and number of days.
Finally, the total annual demand is obtained by adding all the annual demand for Manila – Dagupan Railroad usage.
Table 5 Projected Demand of Train Passengers
Year
Target
Population
% of
Population
who are
willing to
ride train
Market
Acceptability
Potential
Target
Market
Percentage Frequency Annual Demand
Total Annual
DemandEvery
Week
Once a
month
Once a
year
Others
Every Week
(54)
Once a month
(12)
Once a
year
(1)
Others
(4)
2015 898,402 47.25% 71.25% 302,452.77 20.50% 35.00% 28.50% 16.00% 3,348,152.19 1,270,301.64 86,199.04 193,569.77 4,898,222.65
2016 915,472 47.25% 71.25% 308,199.38 20.50% 35.00% 28.50% 16.00% 3,411,767.08 1,294,437.38 87,836.82 197,247.60 4,991,288.88
2017 932,866 47.25% 71.25% 314,055.16 20.50% 35.00% 28.50% 16.00% 3,476,590.66 1,319,031.69 89,505.72 200,995.30 5,086,123.37
2018 950,590 47.25% 71.25% 320,022.21 20.50% 35.00% 28.50% 16.00% 3,542,645.88 1,344,093.29 91,206.33 204,814.22 5,182,759.71
2019 968,652 47.25% 71.25% 326,102.63 20.50% 35.00% 28.50% 16.00% 3,609,956.15 1,369,631.06 92,939.25 208,705.69 5,281,232.15
P a g e | 75
Supply Analysis
Gicha Ressha Train Company is in the business in line with constructing railroad
system. Within the location for the stations chose by the proponents, bus transportation
services are the one that offer the same route as Manila – Dagupan line. On the other
hand, the proponent thought an improved mass transportation that can provide a
smooth ride.
Bus companies will be the direct competitor within the area that the business will
operate. These competitors are currently the provider of the said service. Supply is
important to fulfill the demand of the people.
Operating
Hours
No. of
authorized
Unit/s
No. of
passengers
per bus
Total no. of
Passengers
Annual
Supply
(365)
Bus 16 219 50 10,950 3,996,750
Total 3,996,750
Table 6 Competitor's Supply in 2014
Figure 9 Projected Demand for Train Usage
4,700,000.00
4,800,000.00
4,900,000.00
5,000,000.00
5,100,000.00
5,200,000.00
5,300,000.00
5,400,000.00
2015 2016 2017 2018 2019
P a g e | 76
Table 6 shows the annual competitor’s supply of buses in 2014. The proponents
conducted a time and motion study to several bus terminals to compute for the annual
supply. Result shows that total annual supply of buses for the year 2014 is 3,996,750.
Projecting supply is a way of forecasting sales. This enables the business to
decide on its production capacity and marketing strategies.
Year Supply
2015 4,196,588
2016 4,406,417
2017 4,626,738
2018 4,858,075
2019 5,100,978
Table 7 Projected Competitor's Supply 2015 – 2019
Figure 10 Projected Competitor's Supply
Supply
P a g e | 77
Demand – Supply Analysis
Demand Gap is equal to the number of potential customers less the supply of the
competitors. Computation for the demand gap stems from the competitors’ capacity to
supply the demand of the target market annually. Table 8, shows the computed demand
gap and its percentage for the year 2014.
Frequency Percentage
Demand Gap 810,142 16.85%
Competitors Supply 3,996,750 83.15%
Total Demand 4,806,891.71 100.00%
Table 8 Demand - Supply Gap 2014
16.85%
83.15%
Demand Gap
Bus
Figure 11 Percentage of Competitor's Supply and Demand Gap
The figure below shows the market share of GRT Company and competitor’s
supply including the demand gap for the year 2014. The pie chart below shows that the
demand gap is 16.85%
P a g e | 78
2015 2016 2017 2018 2019
Competitor's Supply 4196587.5 4406416.875 4626737.719 4858074.605 5100978.335
Total Demand 4,898,223 4,991,289 5,086,123 5,182,760 5,281,232
Store Capacity 867,716 921,948 976,180 1,030,412 1,084,644
Market Share 86% 88% 91% 94% 97%
Table 9 Market Share
The projected demand is greater than the projected supply throughout the study
time presentation. The market share of GRT Company is ascending which means that
the business is feasible but still, it must think through and improve marketing strategies
to satisfy demand.
Year Sale – VAT Inclusive Sale – Vat Exclusive
2015
105,208,564.82 93,936,218.59
2016
193,410,591.30 172,688,027.94
2017
628,729,822.81 561,365,913.22
2018
635,017,121.04 566,979,572.35
2019
641,367,292.25 572,649,368.08
Table 9 Computed Sale for five years of operation
P a g e | 79
Customer Analysis
Passengers going to Northern Luzon are the traditional customers in the market
for they are traveling by buses, cars and jeepneys.
The target market was segmented according to location. The target market
consists of passengers traveling to Bulacan, Pampanga, Tarlac and Pangasinan from
Tutuban Manila and vice versa.
Customers have different perceptions in availing a certain service. Some are
convinced by advertisements. Others were persuaded by price, benefits and its
standing in the market. Several are influenced by famous personality and some avail
because they just need it.
Figure 12 shows problem encountered by passengers when traveling by bus.
Passengers commonly complain on high fare, traffic and sudden malfunction of vehicle
0
100
200
300
400
500
600
Traffic Sudden Malfunction High Fare Others
Tally
Figure 12 Problems encountered of passengers when traveling
P a g e | 80
(bus). Others were bothered of long waiting time, difficult to find a bus when rush hour,
long traveling time and bus accidents.
Target Market Strategy
Quality and safety traveling are the priorities of our services. Since there is
already a railroad track from Tutuban to Dagupan, our primary target market will be the
passengers going from Manila to Bulacan, Pampanga, Tarlac and Pangasinan and vice
versa for leisure or business purposes.
Based on surveys, passengers encounter several problems when traveling like
traffic, sudden malfunction of vehicle, high fare, long waiting time, difficult to find a bus
when rush hour, long traveling time and bus accidents. These problems portray the
needs of the customers.
Gicha Ressha Train Company will endorse and maximize the best of our service
to every individual. It is our strategy to encourage our customers and for them to
patronize the service.
P a g e | 81
As the data shown in figure 13, 71.25% of the total sample population said that
they are mostly willing to travel from Manila to Northern Luzon and vice versa using
Manila – Dagupan Line.
Service Strategy
Trains allow passengers to travel in safety and comfort. It’s accessible to all and
transports a large number of people at a time. Usually, train is quicker than traveling by
road because there is no traffic. Trains are well - ventilated with air conditioners to
ensure comfort while traveling. Passengers can do other things while they are traveling
- talk on the phone, read, talk to others.
Overall, GRT Company will provide quality and safety travel services. Customers
will consider this service because of its superiority to offer travel service that will satisfy
their needs.
71.25%
27.50%
1.25%
Mostly
Sometimes
Never
Figure 13 Willingness of passengers to Travel by train
P a g e | 82
Pricing Strategy
Price is one of the most important factors that effects on the buying decision of
passengers. The table below shows the price of ticket.
Stations 2015 2016 2017 2018 2019
Tutuban to Bocaue 180 180 180 180 180
Tutuban to Malolos
Tutuban to San Fernando 230 230 230 230 230
Tutuban to Angeles
Tutuban to Capas
280 280 280 280 280
Tutuban to Tarlac
330 330 330 330 330
Tutuban to Bayambang
380 380 380 380 380
Tutuban to Dagupan
430 430 430 430 430
Table 10 Projected GRT Ticket Price for Five Years
P a g e | 83
Figure 14 Willingness to spend from Manila to first 4 stations
Figure 15 Willingness to spend from Manila to 5 - 8 stations
P a g e | 84
Figure 16 Willingness to spend from Manila to 9 - 12 stations
Figure 17 Willingness to spend from Manila to 13 - 16 stations
Figure 18 Willingness to spend from Manila to 17 to 20 stations
P a g e | 85
Figure 19 Willingness to spend from Manila to 21 - 24 stations
Figure 20 Willingness to spend from Manila to 25 -28 stations
Figures above shows the result of market research conducted to know the
market’s willingness to spend for our service.
Sales Strategy
GRT Company sales strategy emphases on generating profits and meeting
increased market share position to where we initially established our business.
P a g e | 86
Our sales strategy will be the opportunity to travel to provinces in without traffic.
Through this strategy, passengers will be encouraged to try our service.
Advertising and Promotion Strategy
Advertising and promotional communication are an important part of brand
marketing strategy. They are also a significant part of the cultural experience of millions
of consumers. GRT Company advertising strategy will be using government television
network.
Marketing and Sales
The sales of GRT Company are based on the survey result of acceptable sample
size representing the primary target market.
2015
Service Capacity Percentage Sales in Units Price Sales - VAT Inclusive 12% Sales - VAT exclusive
Tutuban 3,615,480 20.78% 751,432 - - - -
Bocaue 3,615,480 5.69% 205,680 180.00 37,022,407.59 3,966,686.53 33,055,721.07
Malolos 3,615,480 10.48% 378,812 180.00 68,186,157.22 7,305,659.70 60,880,497.52
TOTAL 105,208,564.82 11,272,346.23 93,936,218.59
2016
Service Capacity Percentage Sales in Units Price Sales - VAT Inclusive 12% Sales - VAT exclusive
Tutuban 3,615,480 20.78% 826,574.93 - - - -
Bocaue 3,615,480 5.69% 226,248.05 180.00 40,724,648.35 4,363,355.18 36,361,293.17
Malolos 3,615,480 10.48% 416,693.18 180.00 75,004,772.94 8,036,225.67 66,968,547.27
San
Fernando
3,615,480 9.44% 73,148 230.00 16,824,040.00 1,802,575.71 15,021,464.29
Angeles 3,615,480 14.70% 109,419 230.00 25,166,370.00 2,696,396.79 22,469,973.21
Capas 3,615,480 10.86% 127,467 280.00 35,690,760.00 3,824,010.00 31,866,750.00
TOTAL 193,410,591.30 20,722,563.35 172,688,027.94
P a g e | 87
2017
Service Capacity Percentage Sales in Units Price Sales - VAT Inclusive 12% Sales - VAT exclusive
Tutuban 4,067,415 20.78% 834,840.68 - - - -
Bocaue 4,067,415 5.69% 228,510.53 180.00 41,131,894.84 4,406,988.73 36,724,906.11
Malolos 4,067,415 10.48% 420,860.11 180.00 75,754,820.67 8,116,587.93 67,638,232.74
San
Fernando
4,067,415 9.44% 73,879.48 230.00 16,992,280.40 1,820,601.47 15,171,678.93
Angeles 4,067,415 14.70% 110,513.19 230.00 25,418,033.70 2,723,360.75 22,694,672.95
Capas 4,067,415 10.86% 128,741.67 280.00 36,047,667.60 3,862,250.10 32,185,417.50
tarlac 4,067,415 11.03% 448,737 330.00 148,083,171.61 15,866,054.10 132,217,117.51
Bayambang 4,067,415 6.07% 246,803 380.00 93,785,307.45 10,048,425.80 83,736,881.65
Dagupan 4,067,415 10.95% 445,388 430.00 191,516,646.54 20,519,640.70 170,997,005.84
TOTAL 628,729,822.81 67,363,909.59 561,365,913.22
2018
Service Capacity Percentage Sales in Units Price Sales - VAT Inclusive 12% Sales - VAT exclusive
Tutuban 4,293,383 20.78% 843,189.08 - - - -
Bocaue 4,293,383 5.69% 230,795.63 180.00 41,543,213.79 4,451,058.62 37,092,155.17
Malolos 4,293,383 10.48% 425,068.72 180.00 76,512,368.88 8,197,753.81 68,314,615.07
San
Fernando
4,293,383 9.44% 74,618.27 230.00 17,162,203.20 1,838,807.49 15,323,395.72
Angeles 4,293,383 14.70% 111,618.32 230.00 25,672,214.04 2,750,594.36 22,921,619.68
Capas 4,293,383 10.86% 130,029.09 280.00 36,408,144.28 3,900,872.60 32,507,271.68
tarlac 4,293,383 11.03% 453,224.25 330.00 149,564,003.33 16,024,714.64 133,539,288.68
Bayambang 4,293,383 6.07% 249,271.48 380.00 94,723,160.52 10,148,910.06 84,574,250.47
Dagupan 4,293,383 10.95% 449,841.43 430.00 193,431,813.01 20,724,837.11 172,706,975.90
TOTAL 635,017,121.04 68,037,548.68 566,979,572.35
P a g e | 88
2019
Service Capacity Percentage Sales in Units Price Sales - VAT Inclusive 12% Sales - VAT exclusive
Tutuban 4,519,350 20.78% 851,620.97 - - - -
Bocaue 4,519,350 5.69% 233,103.59 180.00 41,958,645.92 4,495,569.21 37,463,076.72
Malolos 4,519,350 10.48% 429,319.40 180.00 77,277,492.57 8,279,731.35 68,997,761.22
San
Fernando
4,519,350 9.44% 75,364.46 230.00 17,333,825.24 1,857,195.56 15,476,629.68
Angeles 4,519,350 14.70% 112,734.51 230.00 25,928,936.18 2,778,100.30 23,150,835.87
Capas 4,519,350 10.86% 131,329.38 280.00 36,772,225.72 3,939,881.33 32,832,344.39
tarlac 4,519,350 11.03% 457,756.50 330.00 151,059,643.36 16,184,961.79 134,874,681.57
Bayambang 4,519,350 6.07% 251,764.19 380.00 95,670,392.13 10,250,399.16 85,419,992.97
Dagupan 4,519,350 10.95% 454,339.84 430.00 195,366,131.14 20,932,085.48 174,434,045.66
TOTAL 641,367,292.25 68,717,924.17 572,649,368.08
Table 11 Computed Sales For the Year 2015
Year Sale – VAT Inclusive Sale – Vat Exclusive
2015
105,208,564.82 93,936,218.59
2016 193,410,591.30 172,688,027.94
2017
628,729,822.81 561,365,913.22
2018 635,017,121.04 566,979,572.35
2019 641,367,292.25 572,649,368.08
Table 12 Computed Sales for five years operation
P a g e | 89
Figure 21 Sales for the years 2015 - 2019
P a g e | 90
TECHNICAL ASPECT
P a g e | 91
Technical Aspect
In this section shows the basic and operation flow of the business. Also the
technical principles and practices in the implementation of the project. Technical aspect
covers the materials, equipment, lay-out of the service, supplies of materials, structure
plan, location and expenses.
Technical aspect is one of the most important parts of the study because it
covers the technicality of the service in your business. It also covers the availability of all
the materials and properties of the business and it also requires that the location of the
business is near to the location of the operations and also to the customer.
Service Description
Railway transport is a kind of transportation that can carry people and goods that
the wheels are connected to the rails. It also called as train transport. Unlike vehicles
running on land, rail road vehicles are running directionally lead on the pathways that
are connected to the surface. Basically the tracks are steel rails that are installed in the
railroad tie and track ballast, on which the rolling stock with an installed metal wheels
moves.
Railroad transportation is one of the most convenient modes of transportation
today. Aside from being fast and cheap, it will cause you less time to go from one place
to another because there is no traffic ahead. Most of the people that are going to work
use this kind of transportation.
One of major concerns of passengers going to Northern provinces is high fare
because of the toll fees. Most people can’t afford to go to provinces especially the low –
income class family.
P a g e | 92
GRT Company is planning on reviving the railroad from Tutuban to Dagupan in
order to help the passengers to go to these provinces in a fast way with cheaper price.
The company aims to make the railroad more suitable to passengers especially to the
low - income class family and also to allow traveling of goods coming from these
provinces.
Location
Figure 22 GRT Company Office Location
P a g e | 93
Figure 23 Satellite View Map
Figure 24 Actual Site
P a g e | 94
The site is located at 3F Natividad Building T.M. Kalaw Street Ermita, Manila with
a measurement of 150 sqm. This business will be targeting the Manila - Dagupan
Railway that was closed since 1939. This area will include offices, conference rooms,
pantry, comfort rooms, lobby, elevators and parking space.
Route Map
Figure 25 Route Map Tutuban to Dagupan
P a g e | 95
On figure, this will be the route map of the railway from Tutuban (Manila) to
Dagupan (Pangasinan). It has a total distance of 214 km and has a travel time of 1 hour
and 46 mins.
Building and Facilities
There will be stations in Tutuban in Manila, Bocaue and Malolos in Bulacan, San
Fernando and Angeles in Pampanga, Capas and Tarlac City in Tarlac, and Bayambang
to Dagupan in Pangasinan.
Each stations consist of a manual type of ticket system and an automatic type of
ticket system. It also have a ticketing system for PWD (Persons with Disability). GRT
Company Office is located just 2.5 kilometers from the Tutuban station to easily monitor
the line. All the stations of Manila – Dagupan Line will have the same appearance of
building to easily recognize by the people.
Tutuban Station
P a g e | 96
Malolos Station
Bocaue Station
P a g e | 97
San Fernando Station
Angeles Station
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Feasibility study 2014

  • 1. P a g e | 1 EXECUTIVE SUMMARY
  • 2. P a g e | 2 The Company Gicha Ressha Train (GRT) is a private firm formed in 2014 to provide nation – side railroad and transportation system for people traveling to Northern Luzon. Aiming rehabilitates and modernizes transport facilities to effectively and efficiently performed mandated tasks. As the economic grows, it was essential to facilitate the restoration of abandoned Manila – Dagupan railroad. The main office is located at Natividad Building, T.M. Kalaw Street Ermita, Manila. GRT is determined to improve access and mobility for residents, employees and visitors to North Luzon. Minimize total travel time, transfers, and changes of mode by integrating the system. Dedicated to provide convenient access and improve connectivity to the regional transit system. Enhance the public image of the proposed transit improvements. Build community and political support through effective communication and integration with local and regional plans. Enhances the physical environment wherever possible. Implement an alternative that minimizes adverse impacts on the environment. Minimize air and noise pollution, vibration impacts, disturbance of public facilities, traffic and parking impacts. The company will be headed by the General Manager with the support of his subordinates. The Service GRT Company is planning on reviving the railroad from Tutuban to Dagupan in order to help the passengers to go along those provinces in a fast way with cheaper price. The company aims to make the railroad more suitable to passengers especially to the low - income class family and also to allow traveling of goods coming from these provinces.
  • 3. P a g e | 3 The Market Quality and safety traveling are the priorities of our services. Since there is already a railroad track from Tutuban to Dagupan, our primary target market will be the passengers going from Manila to Bulacan, Pampanga, Tarlac and Pangasinan and vice versa for leisure or business purposes. The total population target is 631,351. The Company’s Competitive Edge Quality and safety is guaranteed to the passengers in their whole trip. For a strong and reliable public mass transit. Financing Gicha Ressha Train will be financed by three investors with the capital of Php 10,000,000,000. The capital will be distributed for the current and long-term assets for the operation of the company.
  • 4. P a g e | 4 MANAGEMENT ASPECT
  • 5. P a g e | 5 MANAGEMENT ASPECT This chapter tackles the organization act and evaluation requirements in establishing business of any kind. This section focuses on different strategies and policies to be established and implemented during the course of the business. Effective organizational set-up made to be determined and define the duties and responsibilities of every personnel and to delegate and define each power in performing their respective assignments to attain the success of the business. Filipinos are very known to be as family-oriented. Some are still living with their parents even after they have their own families, and some get separated and tried to live on their own, and some did travel to find for their future in the urban like Manila and get stocked or chose to live in it. GRT Company is a company that aims to connect the urban cities to the rural areas and provinces in the Northern part of the country by reopening and reoperation of the late Northrail Line of Philippine National Railway. A business can never be form without its founder and support. Management is the very core of a business. They are the ones who’s running and leading the business into its success, or into its loss. THE COMPANY The name of the company is Gicha Ressha Train Company. The name Gicha is a Korean word meaning train. The name Ressha is a Japanese word meaning railroad. The name Train comes from the word itself because the firm’s line of industry is about railroad system. Translating the company’s name will be “Train Railroad Train” because this company is all about the railroad system in the Philippines specifically the Northrail Line of the Philippine National Railway or PNR. The founder of the company are mainly
  • 6. P a g e | 6 fanatics of the Korean and Japanese culture so they have chosen to use the foreign languages of “train” and “railroad” to form the company’s name. COMPANY LOGO The logo will serve as the symbol of the company. In the figure below, the initials are GRT and forming an image of a train. The initials stand for Gicha Ressha Train. Figure 1 Company Logo
  • 7. P a g e | 7 COMPANY MISSION GRT Company mission is to give the populace the benefit of using a fast, safe, reliable, and cheaper mobility access to rural centers of the northern part of the country through the development, reconstruction, and maintenance of the Northrail line of Philippine National Railway system. COMPANY VISION GRT Company envisions itself to be the country’s successful and leading transportation system that connects urban and rural areas, and mostly the people of these areas. COMPANY GOAL AND OBJECTIVES Gicha Ressha Train Co. aims to reconstruct and reopen the North Main Line system of Philippine National Railway or PNR Northrail that travel from Tutuban, Manila (Terminal Station) crossing into different rural areas and provinces to Dagupan, Pangasinan as the end terminal station, and vice versa.  To reconstruct the late Northrail line of Philippine National Railway  To operate the Northrail line of Philippine National Railway  To maintain the operation of the Northrail line of Philippine National Railway  To produce a fast, safe, reliable, and cheaper mode of transportation to the country’s Northern provinces and areas
  • 8. P a g e | 8 COMPANY OWNERSHIP The form of business organization Gicha Ressha Train Company chose was General Partnership. In General Partnership, a business entity is made up of two or more entities to carry on a trade or business. Each partner contributes money, property, labor, or special skills and each partner shares in the profits and losses from the business. In other words, each general partner takes part in the management of the business, and also takes responsibility for the liabilities of the business. If one partner is sued, all partners are held liable. The business will be easy to practice and organize and will operate more effectively and efficiently since two more persons are present for sharing ideas and strategies to achieve company’s goals and objectives. FORMING THE COMPANY After the agreement of forming the business, it must comply with government requirements for it to be legally established, and be operational. The following are the common requirements and fees are imposed in forming a business. 1. Securities and Exchange Commission (SEC) SEC is a Philippine state commission responsible for securities laws and regulating the securities industry. Registration with the SEC is a requirement for the issuance of licenses by the municipal or city government.
  • 9. P a g e | 9 The following are the requirements for the SEC registration: a. Name Verification Slip b. Accomplished Registration Data Sheet c. Articles of partnership 2. Department of Trade and Industry (DTI) One of DTI’s functions is to administer the registration of business names. Business name registration is compulsory and must be completed before the business starts operating. By registering the business name with the DTI, the proprietor is assured that no other individual or group may legally use the business name anywhere in the Philippines. The following requirements should be fulfilled: a. Registration Fee b. SEC Certificate c. Articles of partnership 3. Bureau of Internal Revenue (BIR) For taxation purposes, every business has to register with the BIR before the commencement of its operation. Any business should secure a company number and shall register with appropriate Revenue District Office (RDO) which has jurisdiction over the place where the main office is located. The company Tax number is permanent and it is to be used by business firm for several business purposes. The registration procedures are the following: a. Secure a permanent record file number of Tax Identification Number; b. Register the business name with the BIR Revenue District Office; and
  • 10. P a g e | 10 c. Pay the prescribed fees d. Apply for individual income tax return. 4. Municipal Permits or Licenses All businesses are required to secure a mayor’s permit or municipal license from the municipality or city where they are located. The following permits and licenses are needed in starting a particular business: a. Mayor’s Permit b. Business Tax c. Garbage Fee d. Sanitary Permit e. Signboards/Billboards f. Electric Permit The processing for the application of Mayor’s Permit, the requirement includes: a. Photocopy of Articles of partnership b. Photocopy of Certificates of SEC Registration c. Photocopy of DTI Registration d. Sanitary Permit secured from the municipal. Health Office that includes sanitary fee and garbage fee e. Fire Safety Permit f. Building Permit from the City Engineer’s Office g. Three (3) copies of business application form
  • 11. P a g e | 11 5. Social Security System (SSS) Registration All companies must be registered with SSS and must secure an employer number which will be used as a reference for the remittance of their monthly contributions. The forms needed for SSS registration are as follows: a. Employer Registration Form (R-1) b. Employment Report Form (R-1A) c. SEC Registration 6. Phil-Health Registration Phil-Health is the country’s Health Insurance Corporation. All employers are required to register their employees with Phil-Health as stated in the New National Health Insurance Act (RA 7875/RA 9241). This agency manages and administers the government health care system in the Philippines. The following documents are required by Phil-Health and as enumerated below: a. Employer Data Record (ER1) b. Report of Employee-Member (ER2) c. SEC Registration 7. Pag-IBIG (Home Development Mutual Fund) Registration Pag-IBIG Fund is also known as the Home Development Mutual Fund which is mandatory for all employees covered by the Social Security System (SSS). The Pag-IBIG Fund essentially provides various types of loans to the members.
  • 12. P a g e | 12 BASIC REQUIREMENTS AND PROCEDURES IN REGISTERING A BUSINESS 1. Reserve and Register Your Business Name in Securities and Exchange Commission (SEC), as follows:  Check if your desired business name is available via SEC online website or at SEC Office in Mandaluyong  If available, register/reserve your business name via SEC online website or at SEC Name Verification Unit – SEC Office in Mandaluyong  Prepare, sign and notarize the following: o Articles of partnership; o By Laws o Treasurer’s Affidavit; and o Joint affidavit of two incorporators undertaking to change corporate name immediately upon receipt of notice or directive from the Securities and Exchange Commission that another corporation, partnership, or person has acquired a prior right to the use of that name or that name has been declared misleading, deceptive, confusingly similar to a registered name, or contrary to public morals, good customs or public policy. (Not required if the Articles of Incorporation have a provision on this commitment).  Submit notarized documents to SEC Office in Mandaluyong City  Claim your SEC Certificate of Registration Processing Time: At least one (1) week upon submission of complete documents 2. Acquire Barangay Clearance Once the corporation is registered with SEC the next step is to get a barangay clearance in the barangay where your business is located.
  • 13. P a g e | 13 Here are the basic steps  Go to the barangay where your business is located to secure and fill-up application form  Submit your completed application form together with the following: o Certificate of Business Registration from SEC o Two (2) valid IDs, Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned) Processing Time: 1 day upon submission of complete documents. 3. Acquire Business Permit from the Mayor’s Office Once you have a Barangay Clearance Certificate, the next step is to acquire a Business Permit in the municipality where your business is located. Here are the basic steps and requirements:  Go to the municipal office where your business is located to secure and fill-up application form  Submit your completed application form together with the following: o Certificate of Business Registration from SEC o Barangay Clearance Certificate o Two (2) valid IDs, Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned) Processing Time: At least one week upon submission of complete documents. But It can take longer depending on the permit requirements based on the industry. 4. Register with the Bureau of Internal Revenue (BIR) Once you have the Mayor’s Business Permit, you can now register with the BIR. Here are the basic steps and requirements:
  • 14. P a g e | 14  Go to the Regional District Office (RDO) where your business is located  Fill-up registration form as follows: o BIR Form 1903 – Application for Registration (For Partnership/Corporation)  Submit completed registration form together with the following: o Certificate of Registration form SEC o Barangay Clearance o Business Permit From the Mayor’s Office o Proof of Address such as Contract of Lease (if rented) or Certificate of Land Title (if owned) o Valid IDs, if applicable.  Pay the Registration Form (BIR Form 0605) and Documentary Stamp Tax (BIR Form 2000), if applicable.  Register your book of accounts and receipts/invoices.  Claim your Certificate of Registration (BIR Form 2303)
  • 15. P a g e | 15 COMPANY LOCATION The proposed location for the business office will be at 3F Natividad Bldg., T.M. Kalaw St., Ermita, Manila. The 75 square meter floor area of the said establishment will be chartered by the company for at least 20 years and/or with extension if needed. Figure 2 Office Location
  • 16. P a g e | 16 OPERATING HOURS AND WORK SCHEDULES The Gicha Ressha Train Company office will be operating from 8:00AM to 5:00PM every weekdays, Monday to Friday. Administrative employees will be having morning break of 15-minutes break from 10:00AM, lunch break of 30 minutes from 12:00 noon, and another 15-minutes break from 2:45PM. Since the company is in partnership with the Philippine National Railway administration, the employees require to have a field work and site inspection to check for the progress of the project, an employee has to file for an itinerary letter a day before the appointment date if he/she is going on the field. The GRT Company trains will be operating from 5:00 AM to 11:00 PM everyday, Monday to Sunday. Employees or personnel from the stations like security guards, ticket operators, and maintenance personnel are require to work a minimum of eight (8) hours a day inclusive of their breaks. Lunch and break time are not too tight as long as they follow the rules regarding the subject, and can perform task assigned to them. Their schedules will be shifting basis so that the station will still be operational along the day.
  • 17. P a g e | 17 ORGANIZATIONAL CHART Figure 3 Organizational Chart The figure shows the organizational structure of Gicha Ressha Train Corporation from top to lower management who would run the company. The business is classified as Corporation as agreed by the owners and due to the complexity of the purpose of the project. The General Manager will overlook to the company to reach its goals and serve its purpose for greater good which will be supported by a Construction Supervisor/Estimator, Financial Planner, Operations Engineer, Project Engineer Human
  • 18. P a g e | 18 Resource Manager and their assistants. Other personnel will be hired then for their designated works such as Train Operators, Ticket Vendor, Maintenance Personnel, and Security Guard. JOB DESCRIPTIONS AND QUALIFICATIONS  GENERAL MANAGER Job Description  Increases management's effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.  Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.  Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid- course corrections.  Coordinates efforts by establishing procurement, production, marketing, field, and technical services policies and practices; coordinating actions with corporate staff.  Builds company image by collaborating with customers, government, community organizations, and employees; enforcing ethical business practices.  Maintains quality service by establishing and enforcing organization standards.
  • 19. P a g e | 19  Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.  Contributes to team effort by accomplishing related results as needed. Qualifications  Male/Female, 30-35years old  Graduate of Industrial Engineering or any managerial course  With knowledge in Management Engineering  Minimum of 3 years of experience in Managerial Position  OPERATIONS MANAGER Job Description  Identifies operational problems by observing and studying system functioning and performance results; investigating complaints and suggestions; interviewing process supervisors and operators; completing troubleshooting procedures.  Identifies operational priorities by assessing operational objectives; determining project objectives, such as, efficiency, cost savings, energy conservation, operator convenience, safety, environmental quality; estimating relevance, time, and costs.  Develops operational solutions by defining, studying, estimating, and screening alternative solutions; calculating economics; determining impact on total system.
  • 20. P a g e | 20  Anticipates operational problems by studying operating targets, modes of operation, unit limitations; monitoring unit performance.  Improves operational quality results by studying, evaluating, and recommending process re-design; implementing changes; contributing information and opinion to unit design and modification teams.  Maintains safe and healthy work environment by following and enforcing standards and procedures; complying with legal regulations.  Provides operational management information by collecting, analyzing, and summarizing operating and engineering data and trends.  Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.  Accomplishes engineering and organization mission by completing related results as needed. Qualifications  Male/Female, 25-35years old  Graduate of Industrial Engineering or any managerial course  With knowledge in Operations Research, Safety Management, Reporting skills, or any related  Minimum of 2 years of experience in related position
  • 21. P a g e | 21  FIELD SUPERVISOR Job Description  Prepare daily production reports (passenger counts of the train)  Assign and coordinate the daily task of laborers  Report any field problems to the General Manager Qualifications  Male, 23-30 years old  Graduate of Mechanical, or any related course  With knowledge in Requirements Analysis, Design Skills, Project Management, Manufacturing Methods and Procedures, Process Improvement, Technical Understanding, Documentation Skills, Safety Management, Supervision  Service oriented and hardworking  Good observation and reporting skills  RAILWAY ENGINEER Job Description  Develops project objectives by reviewing project proposals and plans; conferring with management.  Determines project responsibilities by identifying project phases and elements; assigning personnel to phases and elements; reviewing bids from contractors.  Determines project specifications by studying product design, customer requirements, and performance standards; completing technical studies; preparing cost estimates.
  • 22. P a g e | 22  Confirms product performance by designing and conducting tests.  Determines project schedule by studying project plan and specifications; calculating time requirements; sequencing project elements.  Maintains project schedule by monitoring project progress; coordinating activities; resolving problems.  Controls project plan by reviewing design, specifications, and plan and schedule changes; recommending actions.  Controls project costs by approving expenditures; administering contractor contracts.  Prepares project status reports by collecting, analyzing, and summarizing information and trends; recommending actions.  Maintains safe and clean working environment by enforcing procedures, rules, and regulations.  Maintains project data base by writing computer programs; entering and backing up data.  Maintains product and company reputation by complying with federal and state regulations.  Contributes to team effort by accomplishing related results as needed. Qualifications  Male/Female, 25-35years old  Graduate of Industrial Engineering , Civil, Mechanical Engineering, or any related course  With knowledge in Requirements Analysis, Design Skills, Project Management, Manufacturing Methods and Procedures, Process
  • 23. P a g e | 23 Improvement, Technical Understanding, Documentation Skills, Safety Management, Supervision, CAD, CAD/CAM Circuit Design  Minimum of 2 years of experience in related position  ASSISTANT ENGINEER Job Description  Determines engineering requirements by conducting inspections and analytical tests; analyzing and synthesizing data; maintaining control charts; determining root causes; preparing bid specifications.  Resolves engineering problems by collecting and analyzing information; researching, analyzing, adapting, and modifying engineering techniques; recommending solutions; preparing drawings, schematics, and diagrams; evaluating components, materials, and suppliers; resolving design integration issues; developing specifications and safety standards; performing installations.  Verifies engineering applications by conducting tests and inspections; building and analyzing models and simulations; conducting laboratory experiments and measurements.  Maintains project team accomplishments by communicating essential information; coordinating actions; obtaining expert input; reviewing open issues and action items; contributing information to team meetings and reports; escalating project completion impediments.  Meets cost standards by preparing cost-benefit analyses; tracking and reporting expenses.
  • 24. P a g e | 24  Complies with codes and regulations by complying with requirements; preparing permit applications, plans, and compliance reports.  Prepares guidelines by describing operational and testing methods and procedures.  Maintains and improves quality results by completing quality assurance tests; following standards; studying, evaluating, and re-designing processes; implementing changes.  Ensures operation of analytical equipment by calibrating equipment; completing preventive maintenance requirements; following manufacturer's instructions; troubleshooting malfunctions; calling for repairs; maintaining equipment inventories; evaluating new equipment and techniques.  Keeps supplies ready by inventorying stock; placing orders; verifying receipt.  Prepares engineering reports by collecting, analyzing, and summarizing data and trends; entering data and generating reports and presentations; performing calculations.  Updates job knowledge by tracking and understanding emerging engineering practices; participating in educational opportunities and professional organizations; reading professional publications; maintaining personal networks.  Enhances engineering and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
  • 25. P a g e | 25 Qualifications  Male/Female, 20-28 years old  Graduate of Industrial Engineering , Civil, Mechanical Engineering or any related course  With knowledge in Analyzing Information , General Math Skills, Reporting Research Results, Dealing with Complexity, Presentation Skills, Verbal Communication, Written Communication, Drafting, Analytical Tools, Attention to Detail, Innovation or any related  No experience required  Willingness to learn  FINANCIAL PLANNER Job Description  Defines financial situtation by completing quantitative analyses.  Evaluates optional plans by identifying outcomes and potential returns.  Values assets by appraising current condition; assessing potential.  Recommends debt structures by analyzing refinancing options.  Builds financial database by identifying sources of information; assembling, verifying, and backing up data.  Accomplishes organization goals by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.  Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • 26. P a g e | 26  Recommends financial actions by assessing options in relation to organization goals.  Prepares financial reports by collecting, formatting, analyzing, and explaining information.  Protects operations by keeping financial information confidential.  Maintains technical knowledge by attending educational workshops; reviewing publications.  Contributes to team effort by accomplishing related results as needed. Qualifications  Female, 25-30 years old  Graduate of Accountancy or any related course  With knowledge in Business Knowledge, Corporate Finance, Financial Planning and Strategy, Forecasting, Accounting, Developing Budgets, Analyzing Information , General Math Skills, Reporting Research Results, Managing Profitability, Electronic Payment Technology Risk-Taking, Tracking Budget Expenses, Financial Planning and Strategy, Statistical Analysis, Reporting Research Results, Database Design, Strategic Planning, Forecasting, Analyzing Information , Conceptual Skills, Financial Skills  Minimum of 2 years of experience in related position
  • 27. P a g e | 27  HUMAN RESOURCE MANAGER Job Description  Maintains the work structure by updating job requirements and job descriptions for all positions.  Maintains organization staff by establishing a recruiting, testing, and interviewing program; counseling managers on candidate selection; conducting and analyzing exit interviews; recommending changes.  Prepares employees for assignments by establishing and conducting orientation and training programs.  Maintains a pay plan by conducting periodic pay surveys; scheduling and conducting job evaluations; preparing pay budgets; monitoring and scheduling individual pay actions; recommending, planning, and implementing pay structure revisions.  Ensures planning, monitoring, and appraisal of employee work results by training managers to coach and discipline employees; scheduling management conferences with employees; hearing and resolving employee grievances; counseling employees and supervisors.  Maintains employee benefits programs and informs employees of benefits by studying and assessing benefit needs and trends; recommending benefit programs to management; directing the processing of benefit claims; obtaining and evaluating benefit contract bids; awarding benefit contracts; designing and conducting educational programs on benefit programs.  Ensures legal compliance by monitoring and implementing applicable human resource federal and state requirements; conducting investigations; maintaining records; representing the organization at hearings.
  • 28. P a g e | 28  Maintains management guidelines by preparing, updating, and recommending human resource policies and procedures.  Maintains historical human resource records by designing a filing and retrieval system; keeping past and current records.  Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; participating in professional societies.  Completes human resource operational requirements by scheduling and assigning employees; following up on work results.  Maintains human resource staff by recruiting, selecting, orienting, and training employees.  Maintains human resource staff job results by counseling and disciplining employees; planning, monitoring, and appraising job results.  Contributes to team effort by accomplishing related results as needed. Qualifications  Candidate must possess at least a Bachelor’s/College Degree in Psychology or closely related field  Male/Female 25-30 years old  At least 2-3 years working experience in the related field  Ability to communicate effectively both written and verbally  With knowledge in Hiring, Human Resources Management, Benefits Administration, Performance Management, Communication Processes, Compensation and Wage Structure, Supports Diversity, Classifying
  • 29. P a g e | 29 Employees, Employment Law, Laws Against Sexual Harassment, Organization  HUMAN RESOURCE ADMINISTRATIVE ASSISTANT Job Description  Provides job candidates by screening, interviewing, and testing applicants; notifying existing staff of internal opportunities; maintaining personnel records; obtaining temporary staff from agencies.  Pays employees by calculating pay; distributing checks; maintaining records.  Administers student loan, medical insurance, savings bond, and disability programs by advising employees of eligibility; providing application information; helping with form completion; verifying submission; notifying employees of approvals.  Monitors unemployment claims by reviewing claims; substantiating documentation; requesting legal counsel review.  Maintains human resources records by recording new hires, transfers, terminations, changes in job classifications, merit increases; tracking vacation, sick, and personal time.  Orients new employees by providing orientation information packets; reviewing company policies; gathering withholding and other payroll information; explaining and obtaining signatures for benefit programs.  Documents human resources actions by completing forms, reports, logs, and records.  Updates job knowledge by participating in educational opportunities; reading professional publications.
  • 30. P a g e | 30  Accomplishes human resources department and organization mission by completing related results as needed. Qualifications  Candidate must possess at least a Bachelor’s/College Degree in Psychology or closely related field  Male/Female 20-30 years old  Ability to communicate effectively both written and verbally  No experience required  Willingness to learn  TRAIN OPERATOR/DRIVER Job Description  Checking equipment and engines before a journey starts  Contacting control centres for information about routes and any problems  Following signalling instructions during the journey  Making passenger announcements  Controlling automatic doors  Positioning and handing over engines to drivers on the next shift. Qualifications  High school diploma or equivalent.  Must be at least 21 years of age.  Professional driving experience within the last three years.  Experience may include, but not be limited to, previous operation of light rail vehicle, transit bus/school bus and/or truck. Not more than five (5) points assessed against motor vehicle record (MVR) in the past two (2) years as
  • 31. P a g e | 31 well as possessing a continually valid driver's license for the past two (2) years. Also no DUI, DWI, or reckless driving in the past 24 months.  Ability to pass a Department of Transportation (DOT) physical examination by obtaining a DOT Medical Examiner's Certificate for a minimum of a 2-year qualifying period and then maintain a current DOT Medical Examiner's Certificate thereafter.  Ability to pass a RTD required Physical Ability Asssessment (PAA) related to the physical requirements of the essential functions of the job.  Ability to obtain and maintain a current valid Colorado Commercial Driver's License with an air brake and passenger endorsement (Class B-P2). Ability to successfully complete the LRV Operator Training Program in order to be certified and retain a thorough understanding of all new rules and procedures which are in effect.  Ability to use prudent judgment and common sense in making quick, safe decisions with minimal supervision and adapt to constantly changing operating environments.  Ability to effectively communicate, both orally and in writing, while interacting with customers and RTD staff in a courteous, professional manner. This includes providing good customer service by attending to the needs of a diverse customer base in a sensitive manner.  Strong customer service skills.  Ability to read, write, and speak English. Demonstrated physical ability to perform job duties to include: throwing rail switches, accessing and operating LRV, operating accessibility ramp, coupling/uncoupling LRVs, and raising/lowering LRV pantograph.  Demonstrated ability to push/pull up to 125 pounds and lift/carry up to 60 pounds without assistance.
  • 32. P a g e | 32  Ability to walk on track ballast, on uneven ground, sit for an extended period of time, and work in various outdoor weather.  Ability to be re-certified periodically on standard operating procedures as well as through examination on all Rules and as hands-on proficiency. Ability to maintain a high performance level of dependability, reliability and safety as demonstrated in the past six (6) months by: o -No more than three (3) occurrences and three (3) tardies. o -No more than eighty (80) hours unscheduled work absences. o -Extenuating circumstances will be reviewed.  Acceptable driving record as demonstrated in the past six (6) months by: o -No 'at-fault' of Class A or B safety violations. o -No suspensions for violations of rules or operating procedures  Ability to work unusual hours, split shifts, weekends, holidays, and overtime as required.  CONSTRUCTION SUPERVISOR/ESTIMATOR Job Description  Accomplishes construction human resource objectives by selecting, orienting, training, assigning, scheduling, coaching, counseling, and disciplining employees; communicating job expectations; planning, monitoring, appraising job contributions; recommending compensation actions; adhering to policies and procedures.  Manages sub-contractors by locating, evaluating, and selecting sub- contractors; monitoring and controlling performance.  Meets operational standards by contributing construction information to strategic plans and reviews; implementing production, productivity, quality,
  • 33. P a g e | 33 and customer-service standards; resolving problems; identifying construction management system improvements.  Meets construction budget by monitoring project expenditures; identifying variances; implementing corrective actions; providing non-project annual operating and capital budget information.  Accomplishes construction project results by defining project purpose and scope; calculating resources required; establishing standards and protocols; allocating resources; scheduling and coordinating staff and sub-contractors; evaluating milestone assumptions and conclusions; resolving design problems; evaluating and implementing change orders.  Approves construction projects by conducting inspections at critical phases; obtaining approvals from buyers.  Prevents fines and interruptions by complying with, and enforcing, codes.  Maintains safe, secure, and healthy work environment by following and enforcing standards and procedures; complying with legal regulations.  Updates job knowledge by tracking and understanding emerging construction practices and standards; participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.  Enhances organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.  Prepares work to be accomplished by gathering information and requirements; setting priorities.
  • 34. P a g e | 34  Prepares construction budget by studying home plans; updating specifications; identifying and projecting costs for each elevation.  Evaluates offers to purchase by costing changes, additions, and site requirements.  Obtains bids from vendors and subcontractors by specifying materials; identifying qualified subcontractors; negotiating price.  Maintains cost keys and price masters by updating information.  Resolves cost discrepancies by collecting and analyzing information.  Prepares special reports by collecting, analyzing, and summarizing information and trends.  Maintains quality service by following organization standards.  Maintains continuity among corporate, division, and local work teams by documenting and communicating actions, irregularities, and continuing needs.  Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; participating in professional societies.  Contributes to team effort by accomplishing related results as needed. Qualifications  Male, 25-35 years old  Graduate of Civil, Mechanical Engineering, Architecture or any related course  With knowledge in Project Management, Quality Management, Supervision, Managing Profitability, Delegation, Supply Management, ADA Requirements, Civil Project Management, Estimating, Attention to Detail, Quality Focus or any related
  • 35. P a g e | 35  Minimum of 2 years of experience in related position  TICKET OPERATOR Job Description  Responsible for selling tickets to customers  Responsible reporting daily sales and bookkeeping Qualifications  Must be at least high school graduate  Female, 18-30 years old  Service oriented and hardworking  Good customer communication and service skills  SECURITY GUARD Job Description  Maintains security and safety of people and property in assigned area on company by patrolling areas on foot and enforcing company rules and regulation. Qualifications  Candidate must possess at least a Vocational Diploma / Short Course Certificate, Protective Services & Management or equivalent.  At least 2 year(s) of working experience in the related field is required for this position.  Applicants must be willing to work on any shift.  Male, 25 - 40 years old
  • 36. P a g e | 36  MAINTENANCE PERSONNEL (JANITOR/JANITRESS) Job Description  Sweep and mop floors.  Cleaning trains and stations by emptying trash, sweeping, and cleaning surfaces.  Clean and disinfect laboratory equipment.  Monitor establishment’s security and safety by performing such tasks as locking doors after operating hours and checking electrical appliance use to ensure that hazards are not created.  Use cleaning solutions to remove stains and clean surfaces.  Mix various cleaning agents.  Clean windows, glass partitions, and mirrors, using soapy water or other cleaners, sponges, and squeegees.  Clean and service restrooms with mops and disinfectants.  Identify and report possible repairs. Qualifications  Must be at least high school graduate  Female, 18-30 years old  Service oriented and hardworking  Must be flexible and willing to work to any assigned shift  Good customer service skills
  • 37. P a g e | 37 MANAGEMENT POLICIES AND PROCEDURES Every Policies and procedures are a vital part of business management because it provides a baseline of internal control allows employees to understand their roles and responsibilities within predefined limits. Basically, policies & procedures allow management to guide operations without constant management intervention. There are some conditions unique in our business which the employees cannot be expected to know about unless the management calls their attention. o Employees are expected to devote his/her time and energy toward the performance of the duties and responsibilities assigned to him/her, which may be changed at any time from time to time. o Business transaction not related to work is prohibited within company premises. o All employees are entitled to receive 60 minutes or 1 hour break daily. o Smoking while on duty and in unauthorized places are prohibited. Neatness and Uniform Policy o Men are not allowed to grow their mustache and stubbles should be shaving as soon as noticeable. o All employees should wear proper uniform according to the rules. Employees must wear company uniform every Monday, and Wednesday; and during field work. Employees must wear casual attire every Tuesday, and Thursday. Employees are free to use anything they desire to wear as long as it is presentable. o All employees should have clean hands and short fingernails. Duty to Report/ Failing to Call
  • 38. P a g e | 38 o All employees have a duty to report any violations of the company policies and procedures and while they initially be reluctant to get involved, it’s important to note that failure to report violations can have substantial consequences. In addition to the possibility of being held personally liable for the legal or ethical violation, they may subject to disciplinary proceedings, including termination, so when in doubt they should speak up. Rules of Conduct o Employees are required to obey instructions and perform works as required or assigned. Any insubordination or failure to obey lawful instructions with regard to work and behavior will result to disciplinary action. o Employees should respect the person, rights and properties of all who work with them, particularly our customers. Acts of, or even attempts to cause physical or psychological harm, injury, damage, loss and situations to endanger safety well- being of the above stated persons will be subjected to disciplinary action. o Employees are not allowed to leave the job without permission or conduct personal affair while on duty. Security Policies To further protect the company premises and employees working here, the following guidelines have been set: o All employees (on duty or not) shall have their bags inspected by the security personnel before going in and when coming out. o All items take out from the company office and business establishment should be presented to the security personnel. o All employees are oblige to follow the building’s rules and policies.
  • 39. P a g e | 39 o Safety and security is a major concern for the company because it values its employees and customer not only for productivity but for humanity. The enterprise will be complying on different occupational safety and health regulations and programs mandated by different government agencies. Fire alarm, extinguishers and other safety measures will be placed in different areas of the establishment Drug Abuse Prevention Policy and Procedure Because of the harmful effects of drug abuse on the physical and well- being of its employee, the company is committed to maintain a drug free environment. In keeping with this commitment, drug abuse is hereby prohibited in any form. The company’s policy is to employ a work force free from use of dangerous drugs, either on or off the job. It is, therefore, the company policy that an employee found with the presence of dangerous drugs in his/her system, in possession of, using, selling, trading or offering for sale dangerous drugs during work hours or company sponsored activities or on company’s premises, vehicles and the like may be subject to disciplinary action. Confidential Information In consideration for providing the employee with confidential information, the employee shall hold and treat all confidential information in strict confidence and will not disclose in any manner whatsoever, in whole or in part and will not use the confidential information without the company’s prior written the consent.
  • 40. P a g e | 40 EMPLOYEE LEAVING RIGHTS 1. Service Incentive Leave Under Article 95 of the Labor Code of the Philippines, an employee who has rendered at least (1) one year of service in a company is entitled to five (5) days leave of absence, with pay, every year. The phrase “one year of service” of the employee means service within twelve (12) months, whether continuous or broken, reckoned from the date the employee started working. The period includes authorized absences, unworked weekly rest days, and paid regular holidays. If through individual or collective agreement, company practice or policy, the period of the working days is less than twelve (12) months, said period shall be considered as one year for the purpose of determining the entitlement to the service incentive leave. The service incentive leave may be used for sick and vacation leave purposes. The unused service incentive leave is commutable to its money equivalent at the end of the year. 2. Maternity Leave This benefit applies to all female members, whether married or unmarried, of the Social Security System (SSS) who has paid at least 3 monthly contributions in the twelve-month period immediately preceding the semester of her childbirth or miscarriage. Members will be entitled to maternity leave benefit of sixty (60) days in case of normal delivery or miscarriage, or seventy-eight (78) days, in case of Caesarian section delivery, with benefits equivalent to one hundred percent (100%) of the average daily salary credit of the employee as defined under the law.
  • 41. P a g e | 41 3. Paternity Leave Paternity Leave is granted to all married male employees of a company. The purpose of this benefit is to allow the husband to lend support to his wife during her period of recovery and/or in nursing her newborn child. Usage of Paternity Leave shall be after the delivery. The paternity leave shall be for seven (7) calendar days, with full pay, consisting of basic salary and mandatory allowances fixed by the Regional Wage Board, if any, provided that his pay shall not be less than the mandated minimum wage. 4. Parental Leave for Solo Parent Under RA 8972, Parental leave is a benefit granted to a solo parent to enable him/her to perform parental duties and responsibilities where physical presence is required. Employees that are considered as a solo parent and who have rendered service of at least (1) one year to a company are entitled to 7 working days of leave. 5. Leave for Victims of Violence against Women and their Children Based From RA 9262, Employees who fall under the definition of “Victims of Violence against women and their children “or otherwise known as Republic Act 9262 and who have submitted a certification of violence shall be entitled a leave of ten (10) days with full pay, consisting of basic salary and mandatory allowances . The leave benefit shall cover the days that the woman employee has to attend to medical and legal concerns. 6. Sick Leave Employees should have reasonable opportunities for time away from work without loss of pay to handle illness, injury, legal quarantine and attending visits with health care providers for themselves and immediate family members and
  • 42. P a g e | 42 members of their household who are dependent upon them for care during illness or injury. Full-time employees shall accrue seven and one-half (7.5) hours of sick leave for each two (2) months of employment and an additional seven and one-half (7.5) hours of sick leave for each four (4) months of employment. 7. Special Leave for Women RA 9710 is an article for Special Leave for women. Special Leave is granted to female employees, regardless of age and civil status, with Gynecological disorders and who have rendered at least six (6) months continuous aggregate employment service for the last twelve (12) months prior to surgery. The employee shall be entitled of (2) two months leave with full pay based on her gross monthly compensation. 8. Vacation Leave Under a Vacation Leave, each full-time employee shall be given 5 paid working days (40 hours) vacation at the end of the first year of continuous employment and 10 paid working days (80 hours) vacation at the end of the second year of continuous employment. After 5 years of continuous employment, full-time employees will be eligible for 15 paid working days (120 hours) vacation. Vacation leave may only be used in ½ day or whole day increments. Termination / Employee Dismissal Termination occurs when an employer or employee ends an employee's employment with a particular employer. Termination can be voluntary or involuntary depending on the circumstances.
  • 43. P a g e | 43 In other instances of employment termination, the employment is terminated for a reason which is given to the employee and stated in the termination letter. Termination for cause can occur in such situations as: o Violation of the company code of conduct or ethics policy, o Unacceptable Personal Conduct o Unsatisfactory Job Performance o Failure to follow company policy, o Violence or threatened violence, o Gross and habitual neglect of duty, o Fraud, o Commission of a crime, o Extreme insubordination, o Sexual harassment, or o Watching pornography online Resignation from work will only take effect fifteen days after submission of resignation letter and after the resigning employee complies with the company clearance on accountabilities. SALARIES AND WAGES Monthly Salary Minimum wage is given to direct and indirect employees, wages is according to the Department of Labor and Employment: National Wages and Productivity Commission, underlying the sector of Service, with 16 or more than number of employees. Each classified position is assigned to a salary range that provides, based on similar employment in the defined labor market: minimum, mid-point, and maximum salary rates that are competitive with rates in the external labor market consistent with
  • 44. P a g e | 44 the Enterprise’ ability to pay; and proper relationships within State government employment to maintain internal equity. Employees such as, Janitors, Construction Workers, Ticket Operators, and Security Guard will be paid in accordance to their hourly rate. Direct employees will work 8 hours daily with 1 hour break, and an overtime if needed. Computation of Minimum Wage (Maintenance Personnel, Ticket Operator, and Security Guard) Minimum wage: PHP 451.00 Cost of Living Allowance: PHP 15.00 Rate per day: (Wage/per day)+COLA= 451+15 = PHP 466.00 Annual Gross Salary The annual gross salary of employees of GRT Corporation is consisting of annual salary of an employee before deductions are made plus the 13th month pay. GRT Corporation has different approach of the salary computation depending on the working days of employees. Administrative or Office Employees have only 5 working days a week or a total of 270 days a year depending on the status of the project, and for field workers/employees a total of 324 working days in a year. Every employee will also receive a thirteenth month pay equivalent to their monthly salary pay. GRT Corporation will be allotting PHP 17,002,400.00 as the total salaries of its employees per annum, inclusive of the thirteenth month pay.
  • 45. P a g e | 45 Compensation It’s a policy of the company to compensate its employees at a level sufficient to encourage excellence of performance and to maintain the labor market competitiveness necessary to recruit and retain a competent work force. The pay period of GRT Corporation will be the usual cut-off which is on the 15th and 30th day of the month. Employees are required to give the company their bank account numbers to be able to conduct salary payments through bank transactions. As for the construction labors, their salary or pay period will be on a weekly basis. Work Pay The minimum wage would be PHP 451.00 and integration of the P15 COLA under W.O. No. NCR-17 into the basic pay which sums up to PHP 466.00 Basic Pay GRT Company basic payments will be ranging from the minimum wage of Php 430.00 to PHP 1,360.00 per day. Wage rates of the employees will vary due to the extent of their responsibilities and the degree of educational attained. Fringe Benefits 1. Employees are entitled to 13th month pay and bonuses one year after the business has established. 2. Employees are entitled of a separation pay under article 283-284 of the labor Code of the Philippines depending on the grounds of the company’s termination policy. 3. Promotion opportunity – this is offered to employees who are excellent performers, shows initiative and desire to advance. High rates of pay are given for these extra responsibilities.
  • 46. P a g e | 46 4. Philhealth – the Philhealth program provides benefits for the hospitalization of the employees. 5. SSS Benefits – a social security contribution is required to include both the employer and employees share. Overtime Pay Overtime pay refers to the additional compensation for work performed beyond eight (8) hours a day Back Pay Back Pay is past wages and benefits (bonus, increment, overtime, etc.) to which an employee is entitled either because of a retroactive increase or employment practices (such as dismissal or denial of promotion) declared unlawful by a court or tribunal.HR automatically deletes employee name from the payroll and therefore not paid for the days worked from previous payroll to the day to resign. The pay computed manually which sometimes takes a while because it has to be verified and approved by the management.
  • 47. P a g e | 47 SALARY BREAKDOWN EMPLOYEE'S BASIC SALARY ANNUAL SALARY POSITION EMPLOYE E # HOURLY RATE DAILY RATE BASIC SALARY 2015 2016 2017 2018 2019 2020 Administrative Labor 3 Stations 6 Stations 9 Stations General Manager 1 166.67 1,333.3 3 40,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 Operations Engineer 1 137.50 1,100.0 0 33,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 Project Engineer 1 137.50 1,100.0 0 33,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 Assistant Engineer 1 95.83 766.67 23,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00 Construction Supervisor/Estimator 1 137.50 1,100.0 0 33,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 HR Manager 1 116.67 933.33 28,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00 HR Administrative Assistant 1 95.83 766.67 23,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00 Financial Planning Analysts 1 116.67 933.33 28,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00 Direct Labor Ticket Operator 36 58.25 466.00 13,980.00 2,013,120.0 0 4,026,240.00 9,772,020.00 6,039,360.00 6,039,360.00 Train Driver 9 62.50 500.00 15,000.00 540,000.00 1,080,000.00 1,620,000.00 1,620,000.00 1,620,000.00 Indirect Labor Security Guards 36 58.25 466.00 13,980.00 2,013,120.0 0 4,026,240.00 9,772,020.00 6,039,360.00 6,039,360.00 Janitors/Janitress 36 58.25 466.00 13,980.00 2,013,120.0 0 4,026,240.00 9,772,020.00 6,039,360.00 6,039,360.00 TOTAL 125 1,241.4 2 9,931.3 3 297,940.0 0 2,892,000.0 0 9,471,360.0 0 16,050,720.0 0 33,828,060.0 0 22,630,080.0 0 22,630,080.0 0 Table 1.1 Employee’s Basic Salar
  • 48. P a g e | 48 ANNUAL PROJECTION OF EMPLOYEE'S SALARIES POSITION EMPLOYEE # BASIC SALARY 2015 2016 2017 2018 2019 2020 Administrative Labor 3 Stations 6 Stations 9 Stations General Manager 1 40,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 480,000.00 Operations Engineer 1 33,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 Project Engineer 1 33,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 Assistant Engineer 1 23,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00 Construction Supervisor/Estimator 1 33,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 396,000.00 HR Manager 1 28,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00 HR Administrative Assistant 1 23,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00 276,000.00 Financial Planning Analysts 1 28,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00 336,000.00 Direct Labor Ticket Operator 36 13,980.00 2,013,120.00 4,026,240.00 6,039,360.00 6,039,360.00 6,039,360.00 Train Driver 9 15,000.00 540,000.00 1,080,000.00 1,620,000.00 1,620,000.00 1,620,000.00 Indirect Labor Security Guards 36 13,980.00 2,013,120.00 4,026,240.00 6,039,360.00 6,039,360.00 6,039,360.00 Janitors/Janitress 36 13,980.00 2,013,120.00 4,026,240.00 6,039,360.00 6,039,360.00 6,039,360.00 TOTAL 125 297,940.00 2,892,000.00 9,471,360.00 16,050,720.00 22,630,080.00 22,630,080.00 22,630,080.00 Table 1.2 Annual Projection of Employee’s Salary
  • 49. P a g e | 49 EMPLOYEE'S 13th MONTH PAY POSITION EMPLOYEE # BASIC SALARY 2015 2016 2017 2018 2019 2020 Administrative Labor 3 Stations 6 Stations 9 Stations General Manager 1 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 40,000.00 Operations Engineer 1 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00 Project Engineer 1 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00 Assistant Engineer 1 23,000.00 23,000.00 23,000.00 23,000.00 23,000.00 23,000.00 23,000.00 Construction Supervisor/Estimator 1 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00 33,000.00 HR Manager 1 28,000.00 28,000.00 28,000.00 28,000.00 28,000.00 28,000.00 28,000.00 HR Administrative Assistant 1 23,000.00 23,000.00 23,000.00 23,000.00 23,000.00 23,000.00 23,000.00 Financial Planning Analysts 1 28,000.00 28,000.00 28,000.00 28,000.00 28,000.00 28,000.00 28,000.00 Direct Labor Ticket Operator 36 13,980.00 167,760.00 335,520.00 503,280.00 503,280.00 503,280.00 Train Driver 9 15,000.00 45,000.00 90,000.00 135,000.00 135,000.00 135,000.00 Indirect Labor Security Guards 36 13,980.00 167,760.00 335,520.00 503,280.00 503,280.00 503,280.00 Janitors/Janitress 36 13,980.00 167,760.00 335,520.00 503,280.00 503,280.00 503,280.00 TOTAL 125 297,940.00 241,000.00 789,280.00 1,337,560.00 1,885,840.00 1,885,840.00 1,885,840.00 Table 1.3 Employee’s 13th Month Pay
  • 50. P a g e | 50 SALARY WITH DEDUCTIONS Salary deductions are mandated fees collected by the government. These are deductions collected from the employee's income and are used to give benefits and loans to employees. GRT Corporation will be participating in this legal responsibilities to ensure the future of its employees.  SSS or the Social Security System is one of the deductions in employee's income. The collected deduction from employees is submitted to the Social Security system. The fees collected from the employees are accumulated, and in time mandated by the government agency, loans are made available to members.  Philhealth Contribution is another contribution collected from the employees. These contributions are intended for the employee's health welfare. When emergency times come, Philhealth provides discounts and medical benefits to help in employee's medical needs.  Pag-ibig fund contribution is also deducted from employee's salary. In return, employees are given loan privileges for housing purposes.  Withholding Taxes Withholding taxes are individual taxes coming from each employee. These taxes are given to the government. The percentage of deduction for each employee will be based on the individual's salary as well on the number qualified dependents. o Net pay of labors are the amount that retained in the salary of the workers after the deduction from SSS, Philhealth, Pag-ibig, and Withholding Tax are made.
  • 51. P a g e | 51 EMPLOYEES BASIC SALARY WITH DEDUCTIONS POSITION BASIC SALARY GROSS PAY DEDUCTIONS NET PAY SSS CONTRIBUTIO N PHILHEALTH CONTRIBUTIO N PAG-IBIG CONTRIBUTIO N WITHOLDIN G TAX Administrative Labor General Manager 40,000.00 40,000.00 581.30 437.50 800.00 8,331.03 29,850.17 Operations Engineer 33,000.00 33,000.00 581.30 412.50 660.00 6,238.53 25,107.67 Project Engineer 33,000.00 33,000.00 581.30 412.50 660.00 6,238.53 25,107.67 Assistant Engineer 23,000.00 23,000.00 581.30 287.50 460.00 3,424.55 18,246.65 Construction Supervisor/Estimator 33,000.00 33,000.00 581.30 412.50 660.00 6,238.53 25,107.67 HR Manager 28,000.00 28,000.00 581.30 350.00 560.00 4,757.28 21,751.42 HR Administrative Assistant 23,000.00 23,000.00 581.30 287.50 460.00 3,424.55 18,246.65 Financial Planning Analysts 28,000.00 28,000.00 581.30 350.00 560.00 4,757.28 21,751.42 Direct Labor Ticket Operator 13,980.00 13,980.00 508.70 162.50 100.00 1,350.09 11,858.71 Train Driver 15,000.00 15,000.00 545.00 187.50 300.00 1,514.57 12,452.93 Indirect Labor Security Guards 13,980.00 13,980.00 508.70 162.50 100.00 1,350.09 11,858.71 Janitors/Janitress 13,980.00 13,980.00 508.70 162.50 100.00 1,350.09 11,858.71 TOTAL 297,940.0 0 297,940.0 0 6,721.50 3,625.00 5,420.00 48,975.12 233,198.3 8 Table 2.1 Employee’s Basic Salary Deductions
  • 52. P a g e | 52 EMPLOYEE'S SSS CONTRIBUTION POSITION EMPLOYEE # BASIC SALARY SSS MONTHLY CONTRIBUTION 2015 2016 2017 2018 2019 2020 Administrative Labor General Manager 1 40,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 Operations Engineer 1 33,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 Project Engineer 1 33,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 Assistant Engineer 1 23,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 Construction Supervisor/Estimator 1 33,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 HR Manager 1 28,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 HR Administrative Assistant 1 23,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 Financial Planning Analysts 1 28,000.00 581.30 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 6,975.60 Direct Labor Ticket Operator 36 13,980.00 508.70 73,252.80 146,505.60 219,758.40 219,758.40 219,758.40 Train Driver 9 15,000.00 545.00 19,620.00 39,240.00 58,860.00 58,860.00 235,440.00 Indirect Labor Security Guards 36 13,980.00 508.70 73,252.80 146,505.60 219,758.40 219,758.40 219,758.40 Janitors/Janitress 36 13,980.00 508.70 73,252.80 146,505.60 219,758.40 219,758.40 219,758.40 TOTAL 125 297,940.00 55,804.80 295,183.20 534,561.60 773,940.00 773,940.00 950,520.00 Table 2.3 Employee’s SSS Contribution
  • 53. P a g e | 53 EMPLOYER'S SSS CONTRIBUTION POSITION EMPLOYE E # BASIC SALARY SSS MONTHLY CONTRIBUTIO N 2015 2016 2017 2018 2019 2020 Administrative Labor General Manager 1 40,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 Operations Engineer 1 33,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 Project Engineer 1 33,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 Assistant Engineer 1 23,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 Construction Supervisor/Estimator 1 33,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 HR Manager 1 28,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 HR Administrative Assistant 1 23,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 Financial Planning Analysts 1 28,000.00 1,178.70 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 14,144.40 Direct Labor Ticket Operator 36 13,980.00 1,031.30 148,507.2 0 297,014.40 445,521.60 445,521.60 445,521.60 Train Driver 9 15,000.00 1,105.00 39,780.00 79,560.00 119,340.00 119,340.00 477,360.00 Indirect Labor Security Guards 36 13,980.00 1,031.30 148,507.2 0 297,014.40 445,521.60 445,521.60 445,521.60 Janitors/Janitress 36 13,980.00 1,031.30 148,507.2 0 297,014.40 445,521.60 445,521.60 445,521.60 TOTAL 125 297,940.0 0 113,155.2 0 598,456.8 0 1,083,758.4 0 1,569,060.0 0 1,569,060.0 0 1,927,080.0 0 Table 2.4 Employer’s SSS Contribution
  • 54. P a g e | 54 EMPLOYEE'S PHILHEALTH CONTRIBUTION POSITION EMPLOYEE # BASIC SALARY PHILHEALTH MONTHLY CONTRIBUTION 2015 2016 2017 2018 2019 2020 Administrative Labor General Manager 1 40,000.00 437.50 5,250.00 5,250.00 5,250.00 5,250.00 5,250.00 5,250.00 Operations Engineer 1 33,000.00 412.50 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 Project Engineer 1 33,000.00 412.50 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 Assistant Engineer 1 23,000.00 287.50 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 Construction Supervisor/Estimator 1 33,000.00 412.50 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 HR Manager 1 28,000.00 350.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 HR Administrative Assistant 1 23,000.00 287.50 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 Financial Planning Analysts 1 28,000.00 350.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 Direct Labor Ticket Operator 36 13,980.00 162.50 23,400.00 46,800.00 70,200.00 70,200.00 70,200.00 Train Driver 9 15,000.00 187.50 6,750.00 13,500.00 20,250.00 20,250.00 81,000.00 Indirect Labor Security Guards 36 13,980.00 162.50 23,400.00 46,800.00 70,200.00 70,200.00 70,200.00 Janitors/Janitress 36 13,980.00 162.50 23,400.00 46,800.00 70,200.00 70,200.00 70,200.00 TOTAL 125 297,940.00 35,400.00 112,350.00 189,300.00 266,250.00 266,250.00 327,000.00 Table 2.6 Employee’s PhilHealth Contribution
  • 55. P a g e | 55 EMPLOYER'S PHILHEALTH CONTRIBUTION POSITION EMPLOYEE # BASIC SALARY PHILHEALTH MONTHLY CONTRIBUTION 2015 2015 2016 2017 2018 2019 Administrative Labor General Manager 1 40,000.00 437.50 5,250.00 5,250.00 5,250.00 5,250.00 5,250.00 5,250.00 Operations Engineer 1 33,000.00 412.50 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 Project Engineer 1 33,000.00 412.50 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 Assistant Engineer 1 23,000.00 287.50 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 Construction Supervisor/Estimator 1 33,000.00 412.50 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 4,950.00 HR Manager 1 28,000.00 350.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 HR Administrative Assistant 1 23,000.00 287.50 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 3,450.00 Financial Planning Analysts 1 28,000.00 350.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 4,200.00 Direct Labor Ticket Operator 36 13,980.00 162.50 23,400.00 46,800.00 70,200.00 70,200.00 70,200.00 Train Driver 9 15,000.00 187.50 6,750.00 13,500.00 20,250.00 20,250.00 81,000.00 Indirect Labor Security Guards 36 13,980.00 162.50 23,400.00 46,800.00 70,200.00 70,200.00 70,200.00 Janitors/Janitress 36 13,980.00 162.50 23,400.00 46,800.00 70,200.00 70,200.00 70,200.00 TOTAL 125 297,940.00 35,400.00 112,350.00 189,300.00 266,250.00 266,250.00 327,000.00 Table 2.6 Employer’s PhilHealth Contribution
  • 56. P a g e | 56 EMPLOYEE'S PAG-IBIG CONTRIBUTION POSITION EMPLOYEE # BASIC SALARY PAG-IBIG MONTHLY CONTRIBUTION 2015 2015 2016 2017 2018 2019 Administrative Labor General Manager 1 40,000.00 800.00 9,600.00 9,600.00 9,600.00 9,600.00 9,600.00 9,600.00 Operations Engineer 1 33,000.00 660.00 7,920.00 7,920.00 7,920.00 7,920.00 7,920.00 7,920.00 Project Engineer 1 33,000.00 660.00 7,920.00 7,920.00 7,920.00 7,920.00 7,920.00 7,920.00 Assistant Engineer 1 23,000.00 460.00 5,520.00 5,520.00 5,520.00 5,520.00 5,520.00 5,520.00 Construction Supervisor/Estimator 1 33,000.00 660.00 7,920.00 7,920.00 7,920.00 7,920.00 7,920.00 7,920.00 HR Manager 1 28,000.00 560.00 6,720.00 6,720.00 6,720.00 6,720.00 6,720.00 6,720.00 HR Administrative Assistant 1 23,000.00 460.00 5,520.00 5,520.00 5,520.00 5,520.00 5,520.00 5,520.00 Financial Planning Analysts 1 28,000.00 560.00 6,720.00 6,720.00 6,720.00 6,720.00 6,720.00 6,720.00 Direct Labor Ticket Operator 36 13,980.00 100.00 14,400.00 28,800.00 43,200.00 43,200.00 43,200.00 Train Driver 9 15,000.00 300.00 10,800.00 21,600.00 32,400.00 32,400.00 129,600.00 Indirect Labor Security Guards 36 13,980.00 100.00 14,400.00 28,800.00 43,200.00 43,200.00 43,200.00 Janitors/Janitress 36 13,980.00 100.00 14,400.00 28,800.00 43,200.00 43,200.00 43,200.00 TOTAL 125 297,940.00 57,840.00 111,840.00 165,840.00 219,840.00 219,840.00 317,040.00 Table 2.7 Employee’s PAG-IBIG Fund Contribution
  • 57. P a g e | 57 EMPLOYEE'S WITHOLDING TAX POSITION EMPLOYE E # BASIC SALARY MONTHLY WITHOLDIN G TAX 2015 2016 2017 2018 2019 2020 Administrative Labor General Manager 1 40,000.00 8,331.03 99,972.36 99,972.36 99,972.36 99,972.36 99,972.36 99,972.36 Operations Engineer 1 33,000.00 6,238.53 74,862.36 74,862.36 74,862.36 74,862.36 74,862.36 74,862.36 Project Engineer 1 33,000.00 6,238.53 74,862.36 74,862.36 74,862.36 74,862.36 74,862.36 74,862.36 Assistant Engineer 1 23,000.00 3,424.55 41,094.60 41,094.60 41,094.60 41,094.60 41,094.60 41,094.60 Construction Supervisor/Estimator 1 33,000.00 6,238.53 74,862.36 74,862.36 74,862.36 74,862.36 74,862.36 74,862.36 HR Manager 1 28,000.00 4,757.28 57,087.36 57,087.36 57,087.36 57,087.36 57,087.36 57,087.36 HR Administrative Assistant 1 23,000.00 3,424.55 41,094.60 41,094.60 41,094.60 41,094.60 41,094.60 41,094.60 Financial Planning Analysts 1 28,000.00 4,757.28 57,087.36 57,087.36 57,087.36 57,087.36 57,087.36 57,087.36 Direct Labor Ticket Operator 36 13,980.00 1,350.09 194,412.96 388,825.92 583,238.88 583,238.88 583,238.88 Train Driver 9 15,000.00 1,514.57 54,524.52 109,049.04 163,573.56 163,573.56 654,294.24 Indirect Labor Security Guards 36 13,980.00 1,350.09 194,412.96 388,825.92 583,238.88 583,238.88 583,238.88 Janitors/Janitress 36 13,980.00 1,350.09 194,412.96 388,825.92 583,238.88 583,238.88 583,238.88 TOTAL 125 297,940.0 0 520,923.3 6 1,158,686.7 6 1,796,450.1 6 2,434,213.5 6 2,434,213.5 6 2,924,934.2 4 Table 2.8 Employee’s Withholding Tax
  • 58. P a g e | 58 REGULAR PAID HOLIDAY Holiday Pay Holiday pay refers to the payment of the regular daily wage for any unworked regular holiday.Employees covered by the holiday pay rule are entitled to their basic wage for any non-working regular holiday. Employees who would be working for the said holiday will have a double pay. Pursuant to the provisions of the Labor Code, as amended in relation to the observance of declared holidays and in response to the queries received every time a Presidential Proclamation or a law is enacted by Congress which declares certain days either as a regular holiday, a special day or a special working holiday, the following guidelines shall be observed by all employers in the private sector: Unless otherwise modified by law, order, or proclamation, the following are the twelve (12) regular holidays in a year under Executive Order No. 292, as amended by Republic Act 9849: o New Year’s Day - January 1 o Maundy Thursday - Movable Date o Good Friday - Movable Date o Araw ng Kagitingan - April 9 o Labor Day - May 1 o Independence Day - June 12 o National Heroes’ Day - Last Monday of August o Bonifacio Day - November 30 o Eid’l Fitr - Movable Date o Eid’l Adha - Movable Date o Christmas Day - December 25 o Rizal Day - Monday nearest December 30
  • 59. P a g e | 59 The following rules shall apply: 1. If it is an employee’s regular workday o If unworked – 100% o If worked:  1st 8 hours – 200%  excess of 8 hours – plus 30% of hourly rate on said day 2. If it is an employee’s rest day o If unworked – 100% o If worked  1st 8 hours – plus 30% of 200%  excess of 8 hours – plus 30% of hourly rate on said day Premium Pay Premium pay refers to the additional compensation for work performed within eight (8) hours on non-work days, such as rest days and special days. Unless otherwise modified by law, order, or proclamation, the following are the three (3) special days in a year under Executive Order No. 292, as amended by Republic Act 9849 that shall be observed in the Philippines: o Ninoy Aquino Day - August 21 o All Saints Day - November 1 o Last Day of the Year - December 31 The following rules shall apply: 1. If unworked o No pay, unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment of wages on special days even if unworked.
  • 60. P a g e | 60 2. If worked o 1st 8 hours – plus 30% of the daily rate of 100% o excess of 8 hours – plus 30% of hourly rate on said day o Falling on the employee’s rest day and if worked o 1st 8 hours – plus 50% of the daily rate of 100% o excess of 8 hours – plus 30% of hourly rate on said day For those declared as special working holidays, the following rules shall apply: o For work performed, an employee is entitled only to his basic rate. No premium pay is required since work performed on said days is considered work on ordinary working days. Professional Fee The company will have an On-Call CPA Consultant that will be paid PHP 8,000.00 quarterly. PROFESSIONAL FEE FOR ON-CALL CPA CONSULTANT 2015 2016 2017 2018 2019 Annual Gross Pay 32,000.00 32,960.00 33,948.80 34,967.26 36,016.28 Withholding Tax 11,317.56 11,657.09 12,006.80 12,367.00 12,738.01 Annual Net Pay 20,682.44 21,302.91 21,942.00 22,600.26 23,278.27 Table 4.1 Professional Fee for On-Call CPA Consultant The company will hire a Construction Supervisor/Estimator until the project (rebuilding of Northrail transit which is from Tutuban, Manila to Dagupan, Pangasinan) is complete which is projected to be done on 2018. He will be paid PHP 33,000.00 monthly.
  • 61. P a g e | 61 PROFESSIONAL FEE FOR CONSTRUCTION SUPERVISOR/ESTIMATOR 2015 2016 2017 2018 Annual Gross Pay 396,000.00 396,000.00 396,000.00 396,000.00 Deductions (SSS, Philhealth, Pag- ibig) 19,845.60 19,845.60 19,845.60 19,845.60 Withholding Tax 74,862.36 74,862.36 74,862.36 74,862.36 Annual Net Pay 301,292.04 301,292.04 301,292.04 301,292.04 Table 4.2 Professional Fee for Construction Supervisor/Estimator
  • 62. P a g e | 62 BUSINESS TIMELINE Prior to the actual business operation, it is part of the process to fulfill the necessary pre-operating requirements and the responsibilities. In order to do this, the company recognized organizational structure from selection of business supported with a feasibility study and the following company activities that will support the legality, manpower requirements, safe and engineered facility, competitiveness and strong market impact of the company. The proponents use Gantt chart to show the scheduling of company activities from selecting a business to be established up to the normal start of operation.
  • 63. P a g e | 63 BUSINESS TIMELINE ACTIVITY 2015 2015 201 6 2017 2018 JULY AUGUST SEPTEM BER OCTOBE R NOVEM BER DECEMBE R JANUARY FEBRUA RY 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 2014 - 2015 1 2015 - 2016 1 2017 - 2018 1 2 3 4 1 Selection of business. 2 Feasibility study of business. 3 Canvassing of office furniture, supplies, and equipment. 4 Registration of business. 5 Purchasing of office furniture, supplies, and equipment. 6 Hiring, orientation, and training of business administration and construction firm. 7 Reconstruction of establishment. 8 Start of operation. 9 Reconstruction of establishment. 8 Start of operation. 11 Reconstruction of establishment. 12 Regular operations.
  • 64. P a g e | 64 MANAGEMENT ASSUMPTIONS The following assumptions were made in order to compute the administrative expenses:  The proponents assume that there are 15 holidays in a year; 12 regular holidays and 3 special holidays under Executive Order No. 292 as amended by RA 9849.  The proponents based the SSS contribution of the employees on the current SSS Contribution table.  The proponents based the PhilHealth contribution of employees on the current PhilHealth Contribution Table.  The proponents used the fixed P 100.00 HDMF Contribution for minimum wage earner-employees only, and 2% rate of basic salary for others.  The proponents assume that in a year, there will be 3 stations that are built/finished and will be operational.
  • 65. P a g e | 65 MARKETING ASPECT
  • 66. P a g e | 66 Marketing Aspect The marketing aspect of the feasibility aspect will consider the major nature of business, service description, the marketplace and industrial analysis and the marketing strategy. Demand and supply will be analyzed to know the target market shares. Service Description Gicha Ressha Train Company manages Manila – Dagupan railroad which cover major towns: Bulacan, Pampanga, Tarlac and Pangasinan from Manila and vice versa. Our train will provide own comfortable seats and own air-condition. Quality and safety is guaranteed to the passengers in their whole trip. Upon entering the stations, there will be reliable security guards roaming around and responsible to provide quality customer service that they need. Ticket vending machines and ticket booths are available to easy access magnetic card train ticket. To further increase customer satisfaction, the company is assured that passengers are at ease in traveling. Gicha Ressha Train (GRT) will strive to build a loyal customer service by offering a great facility during waiting and during the ride from Manila to Dagupan City. Market Comparison Buses will be the direct competitors of Manila – Dagupan Railroad base on routes. Presently, they are the one providing transportation for passengers who to travel to Northern Luzon.
  • 67. P a g e | 67 Industry Analysis Philippines’ railroad transportation can be considered as a developing mode of transportation. Picture below shows (fig. 1) the growing phase of railroad transportation. However, most of the routes are only in inter-city. Figure 4 Transit System Map
  • 68. P a g e | 68 According to the National Statistical Coordination Board (NSCB) in 2009, 74.7% of the population belongs to low – income class family that earns an average of P9,061 per month. They can’t afford to buy luxury goods like cars, apple gadgets and etc. During peak seasons: Holy Week, All Saint’s Day, All Souls Day, Christmas and New Year, normally people travel to provinces. As of now, buses are usually used mode of transportation that travels to Northern Luzon. A bus has a normal capacity of 50 or more seats for passengers. Figure 2 shows how frequently people travel to Northern Luzon using bus. 35% went to their provinces once a month. 28.05% said they travel to Northern Luzon once a year. 20.50% of the population travels every week. 16% travel seldom, occasionally, twice or thrice a year. Base on buses fare, Manila to Dagupan back and forth in ordinary bus is 552 and 700 pesos back and forth in air – conditioned buses. Passengers usually encounter 20.50% 35% 28.50% 16% Every Week Once a month Once a year Others Figure 5 Percentage of how often people travel using bus
  • 69. P a g e | 69 problems such as high fare, traffic, sudden malfunction, long waiting time, accidents and long travel time. Bus Travel Time From To Distance Time Via With Traffic No Traffic Cubao Bocaue 26.1 km 2 hrs 1 hr 10min Sapang Palay-Sta Cruz D. Jose via Sta Maria Cubao Malolos 42.5 km 3 hrs 2h 34 min Baclaran- SM Fairview via Quezon Avenue and Manila - Banaue Cubao San Fernando 80.3 km 3hrs 2h 5 min Avenida - Balanga Cubao Angeles 92.8 km 3 hrs 2h 32 mins Avenida - Dau Cubao Capas 118.3 km 3 hrs 2 hr 30 mins Cubao - Tarlac Cubao Tarlac 131.5 km 4 hrs 3 hr 41 mins Espana Blvd - Candon City and Cubao Bayambang 179.9 km 6 hrs 5hr 41 mins Avenida - Baguio and Aurora Blvd - San Carlos City Cubao Dagupan 214 km 8 hrs 6hr 52 mins Avenida – Baguio And Cubao - Dagupan Table 1 Time Flow of Bus
  • 70. P a g e | 70 Figure 6 Bus in the Philippines with 50 seats Figure 7 Industrial Framework
  • 71. P a g e | 71 Market Analysis People using trains have shown steady growth. People traveling to Northern Luzon are the one who will the company foresee to serve. The total target population is 881,651. Location Population Percentage of Willing to Ride the train Total Tutuban 233,240 20.78% 183,240 Bocaue 86,994 5.69% 50,156 Malolos 112,375 10.48% 92,375 Capas 125,852 9.44% 83,211 Tarlac 143,600 14.70% 129,600 San Fernando 150,762 10.86% 95,762 Angeles 208,268 11.03% 97,268 Bayambang 111,521 6.07% 53,497 Dagupan 163,676 10.95% 96,542 Total 1,336,288 100.00% 881,651 To determine the projected population for years 2015 – 2019, an average growth rate of 1.90% was used. Table 15 shows the projected population for the next five years. Year Target Population 2015 898,402 2016 915,472 2017 932,866 2018 950,590 2019 968,652 Table 3 Projected Population Bus companies are currently the available and serving the market. For now, they have the ability of mass transportation going from Manila to Dagupan and vice versa. Table 2 Total Population for the Year 2014
  • 72. P a g e | 72 The proponents conducted a survey to 400 respondents that represent the total population if the target market. Slovin’s Formula was used to determine the sample size with 5% margin of error. For the computation of sample size, see appendices. Demand Analysis Figure 5 shows the mode of transportation used by passengers going to Northern Luzon. The research shows 85.50% of the population used buses. 8.75% responded that they travel using their private cars. 5.75% used jeepneys in going to Northern Luzon. 8.75% 85.50% 5.75% Cars Buses Jeepneys Figure 8 Mode of Transportation going to Northern Luzon
  • 73. P a g e | 73 Year Target Population % of Population who are willing to ride train Market Acceptability Potential Target Market Percentage Frequency Annual Demand Total Annual DemandEvery Week Once a month Once a year Others Every Week Once a month Once a year Others 2014 881,651 47.25% 71.25% 296,813.32 20.50% 35.00% 28.50% 16.00% 3,285,723.45 1,246,615.94 84,591.80 189,960.52 4,806,891.71 Table 4 Annual Demand for Manila - Dagupan Railroad Usag
  • 74. P a g e | 74 Table 4 shows the demand for railroad transportation in the year 2014; the potential target market is calculated by multiplying the target population to the percentage of population who are willing to use a train and market acceptability. Annual demand is the product of potential target market, percentage of how people often use bus and number of days. Finally, the total annual demand is obtained by adding all the annual demand for Manila – Dagupan Railroad usage. Table 5 Projected Demand of Train Passengers Year Target Population % of Population who are willing to ride train Market Acceptability Potential Target Market Percentage Frequency Annual Demand Total Annual DemandEvery Week Once a month Once a year Others Every Week (54) Once a month (12) Once a year (1) Others (4) 2015 898,402 47.25% 71.25% 302,452.77 20.50% 35.00% 28.50% 16.00% 3,348,152.19 1,270,301.64 86,199.04 193,569.77 4,898,222.65 2016 915,472 47.25% 71.25% 308,199.38 20.50% 35.00% 28.50% 16.00% 3,411,767.08 1,294,437.38 87,836.82 197,247.60 4,991,288.88 2017 932,866 47.25% 71.25% 314,055.16 20.50% 35.00% 28.50% 16.00% 3,476,590.66 1,319,031.69 89,505.72 200,995.30 5,086,123.37 2018 950,590 47.25% 71.25% 320,022.21 20.50% 35.00% 28.50% 16.00% 3,542,645.88 1,344,093.29 91,206.33 204,814.22 5,182,759.71 2019 968,652 47.25% 71.25% 326,102.63 20.50% 35.00% 28.50% 16.00% 3,609,956.15 1,369,631.06 92,939.25 208,705.69 5,281,232.15
  • 75. P a g e | 75 Supply Analysis Gicha Ressha Train Company is in the business in line with constructing railroad system. Within the location for the stations chose by the proponents, bus transportation services are the one that offer the same route as Manila – Dagupan line. On the other hand, the proponent thought an improved mass transportation that can provide a smooth ride. Bus companies will be the direct competitor within the area that the business will operate. These competitors are currently the provider of the said service. Supply is important to fulfill the demand of the people. Operating Hours No. of authorized Unit/s No. of passengers per bus Total no. of Passengers Annual Supply (365) Bus 16 219 50 10,950 3,996,750 Total 3,996,750 Table 6 Competitor's Supply in 2014 Figure 9 Projected Demand for Train Usage 4,700,000.00 4,800,000.00 4,900,000.00 5,000,000.00 5,100,000.00 5,200,000.00 5,300,000.00 5,400,000.00 2015 2016 2017 2018 2019
  • 76. P a g e | 76 Table 6 shows the annual competitor’s supply of buses in 2014. The proponents conducted a time and motion study to several bus terminals to compute for the annual supply. Result shows that total annual supply of buses for the year 2014 is 3,996,750. Projecting supply is a way of forecasting sales. This enables the business to decide on its production capacity and marketing strategies. Year Supply 2015 4,196,588 2016 4,406,417 2017 4,626,738 2018 4,858,075 2019 5,100,978 Table 7 Projected Competitor's Supply 2015 – 2019 Figure 10 Projected Competitor's Supply Supply
  • 77. P a g e | 77 Demand – Supply Analysis Demand Gap is equal to the number of potential customers less the supply of the competitors. Computation for the demand gap stems from the competitors’ capacity to supply the demand of the target market annually. Table 8, shows the computed demand gap and its percentage for the year 2014. Frequency Percentage Demand Gap 810,142 16.85% Competitors Supply 3,996,750 83.15% Total Demand 4,806,891.71 100.00% Table 8 Demand - Supply Gap 2014 16.85% 83.15% Demand Gap Bus Figure 11 Percentage of Competitor's Supply and Demand Gap The figure below shows the market share of GRT Company and competitor’s supply including the demand gap for the year 2014. The pie chart below shows that the demand gap is 16.85%
  • 78. P a g e | 78 2015 2016 2017 2018 2019 Competitor's Supply 4196587.5 4406416.875 4626737.719 4858074.605 5100978.335 Total Demand 4,898,223 4,991,289 5,086,123 5,182,760 5,281,232 Store Capacity 867,716 921,948 976,180 1,030,412 1,084,644 Market Share 86% 88% 91% 94% 97% Table 9 Market Share The projected demand is greater than the projected supply throughout the study time presentation. The market share of GRT Company is ascending which means that the business is feasible but still, it must think through and improve marketing strategies to satisfy demand. Year Sale – VAT Inclusive Sale – Vat Exclusive 2015 105,208,564.82 93,936,218.59 2016 193,410,591.30 172,688,027.94 2017 628,729,822.81 561,365,913.22 2018 635,017,121.04 566,979,572.35 2019 641,367,292.25 572,649,368.08 Table 9 Computed Sale for five years of operation
  • 79. P a g e | 79 Customer Analysis Passengers going to Northern Luzon are the traditional customers in the market for they are traveling by buses, cars and jeepneys. The target market was segmented according to location. The target market consists of passengers traveling to Bulacan, Pampanga, Tarlac and Pangasinan from Tutuban Manila and vice versa. Customers have different perceptions in availing a certain service. Some are convinced by advertisements. Others were persuaded by price, benefits and its standing in the market. Several are influenced by famous personality and some avail because they just need it. Figure 12 shows problem encountered by passengers when traveling by bus. Passengers commonly complain on high fare, traffic and sudden malfunction of vehicle 0 100 200 300 400 500 600 Traffic Sudden Malfunction High Fare Others Tally Figure 12 Problems encountered of passengers when traveling
  • 80. P a g e | 80 (bus). Others were bothered of long waiting time, difficult to find a bus when rush hour, long traveling time and bus accidents. Target Market Strategy Quality and safety traveling are the priorities of our services. Since there is already a railroad track from Tutuban to Dagupan, our primary target market will be the passengers going from Manila to Bulacan, Pampanga, Tarlac and Pangasinan and vice versa for leisure or business purposes. Based on surveys, passengers encounter several problems when traveling like traffic, sudden malfunction of vehicle, high fare, long waiting time, difficult to find a bus when rush hour, long traveling time and bus accidents. These problems portray the needs of the customers. Gicha Ressha Train Company will endorse and maximize the best of our service to every individual. It is our strategy to encourage our customers and for them to patronize the service.
  • 81. P a g e | 81 As the data shown in figure 13, 71.25% of the total sample population said that they are mostly willing to travel from Manila to Northern Luzon and vice versa using Manila – Dagupan Line. Service Strategy Trains allow passengers to travel in safety and comfort. It’s accessible to all and transports a large number of people at a time. Usually, train is quicker than traveling by road because there is no traffic. Trains are well - ventilated with air conditioners to ensure comfort while traveling. Passengers can do other things while they are traveling - talk on the phone, read, talk to others. Overall, GRT Company will provide quality and safety travel services. Customers will consider this service because of its superiority to offer travel service that will satisfy their needs. 71.25% 27.50% 1.25% Mostly Sometimes Never Figure 13 Willingness of passengers to Travel by train
  • 82. P a g e | 82 Pricing Strategy Price is one of the most important factors that effects on the buying decision of passengers. The table below shows the price of ticket. Stations 2015 2016 2017 2018 2019 Tutuban to Bocaue 180 180 180 180 180 Tutuban to Malolos Tutuban to San Fernando 230 230 230 230 230 Tutuban to Angeles Tutuban to Capas 280 280 280 280 280 Tutuban to Tarlac 330 330 330 330 330 Tutuban to Bayambang 380 380 380 380 380 Tutuban to Dagupan 430 430 430 430 430 Table 10 Projected GRT Ticket Price for Five Years
  • 83. P a g e | 83 Figure 14 Willingness to spend from Manila to first 4 stations Figure 15 Willingness to spend from Manila to 5 - 8 stations
  • 84. P a g e | 84 Figure 16 Willingness to spend from Manila to 9 - 12 stations Figure 17 Willingness to spend from Manila to 13 - 16 stations Figure 18 Willingness to spend from Manila to 17 to 20 stations
  • 85. P a g e | 85 Figure 19 Willingness to spend from Manila to 21 - 24 stations Figure 20 Willingness to spend from Manila to 25 -28 stations Figures above shows the result of market research conducted to know the market’s willingness to spend for our service. Sales Strategy GRT Company sales strategy emphases on generating profits and meeting increased market share position to where we initially established our business.
  • 86. P a g e | 86 Our sales strategy will be the opportunity to travel to provinces in without traffic. Through this strategy, passengers will be encouraged to try our service. Advertising and Promotion Strategy Advertising and promotional communication are an important part of brand marketing strategy. They are also a significant part of the cultural experience of millions of consumers. GRT Company advertising strategy will be using government television network. Marketing and Sales The sales of GRT Company are based on the survey result of acceptable sample size representing the primary target market. 2015 Service Capacity Percentage Sales in Units Price Sales - VAT Inclusive 12% Sales - VAT exclusive Tutuban 3,615,480 20.78% 751,432 - - - - Bocaue 3,615,480 5.69% 205,680 180.00 37,022,407.59 3,966,686.53 33,055,721.07 Malolos 3,615,480 10.48% 378,812 180.00 68,186,157.22 7,305,659.70 60,880,497.52 TOTAL 105,208,564.82 11,272,346.23 93,936,218.59 2016 Service Capacity Percentage Sales in Units Price Sales - VAT Inclusive 12% Sales - VAT exclusive Tutuban 3,615,480 20.78% 826,574.93 - - - - Bocaue 3,615,480 5.69% 226,248.05 180.00 40,724,648.35 4,363,355.18 36,361,293.17 Malolos 3,615,480 10.48% 416,693.18 180.00 75,004,772.94 8,036,225.67 66,968,547.27 San Fernando 3,615,480 9.44% 73,148 230.00 16,824,040.00 1,802,575.71 15,021,464.29 Angeles 3,615,480 14.70% 109,419 230.00 25,166,370.00 2,696,396.79 22,469,973.21 Capas 3,615,480 10.86% 127,467 280.00 35,690,760.00 3,824,010.00 31,866,750.00 TOTAL 193,410,591.30 20,722,563.35 172,688,027.94
  • 87. P a g e | 87 2017 Service Capacity Percentage Sales in Units Price Sales - VAT Inclusive 12% Sales - VAT exclusive Tutuban 4,067,415 20.78% 834,840.68 - - - - Bocaue 4,067,415 5.69% 228,510.53 180.00 41,131,894.84 4,406,988.73 36,724,906.11 Malolos 4,067,415 10.48% 420,860.11 180.00 75,754,820.67 8,116,587.93 67,638,232.74 San Fernando 4,067,415 9.44% 73,879.48 230.00 16,992,280.40 1,820,601.47 15,171,678.93 Angeles 4,067,415 14.70% 110,513.19 230.00 25,418,033.70 2,723,360.75 22,694,672.95 Capas 4,067,415 10.86% 128,741.67 280.00 36,047,667.60 3,862,250.10 32,185,417.50 tarlac 4,067,415 11.03% 448,737 330.00 148,083,171.61 15,866,054.10 132,217,117.51 Bayambang 4,067,415 6.07% 246,803 380.00 93,785,307.45 10,048,425.80 83,736,881.65 Dagupan 4,067,415 10.95% 445,388 430.00 191,516,646.54 20,519,640.70 170,997,005.84 TOTAL 628,729,822.81 67,363,909.59 561,365,913.22 2018 Service Capacity Percentage Sales in Units Price Sales - VAT Inclusive 12% Sales - VAT exclusive Tutuban 4,293,383 20.78% 843,189.08 - - - - Bocaue 4,293,383 5.69% 230,795.63 180.00 41,543,213.79 4,451,058.62 37,092,155.17 Malolos 4,293,383 10.48% 425,068.72 180.00 76,512,368.88 8,197,753.81 68,314,615.07 San Fernando 4,293,383 9.44% 74,618.27 230.00 17,162,203.20 1,838,807.49 15,323,395.72 Angeles 4,293,383 14.70% 111,618.32 230.00 25,672,214.04 2,750,594.36 22,921,619.68 Capas 4,293,383 10.86% 130,029.09 280.00 36,408,144.28 3,900,872.60 32,507,271.68 tarlac 4,293,383 11.03% 453,224.25 330.00 149,564,003.33 16,024,714.64 133,539,288.68 Bayambang 4,293,383 6.07% 249,271.48 380.00 94,723,160.52 10,148,910.06 84,574,250.47 Dagupan 4,293,383 10.95% 449,841.43 430.00 193,431,813.01 20,724,837.11 172,706,975.90 TOTAL 635,017,121.04 68,037,548.68 566,979,572.35
  • 88. P a g e | 88 2019 Service Capacity Percentage Sales in Units Price Sales - VAT Inclusive 12% Sales - VAT exclusive Tutuban 4,519,350 20.78% 851,620.97 - - - - Bocaue 4,519,350 5.69% 233,103.59 180.00 41,958,645.92 4,495,569.21 37,463,076.72 Malolos 4,519,350 10.48% 429,319.40 180.00 77,277,492.57 8,279,731.35 68,997,761.22 San Fernando 4,519,350 9.44% 75,364.46 230.00 17,333,825.24 1,857,195.56 15,476,629.68 Angeles 4,519,350 14.70% 112,734.51 230.00 25,928,936.18 2,778,100.30 23,150,835.87 Capas 4,519,350 10.86% 131,329.38 280.00 36,772,225.72 3,939,881.33 32,832,344.39 tarlac 4,519,350 11.03% 457,756.50 330.00 151,059,643.36 16,184,961.79 134,874,681.57 Bayambang 4,519,350 6.07% 251,764.19 380.00 95,670,392.13 10,250,399.16 85,419,992.97 Dagupan 4,519,350 10.95% 454,339.84 430.00 195,366,131.14 20,932,085.48 174,434,045.66 TOTAL 641,367,292.25 68,717,924.17 572,649,368.08 Table 11 Computed Sales For the Year 2015 Year Sale – VAT Inclusive Sale – Vat Exclusive 2015 105,208,564.82 93,936,218.59 2016 193,410,591.30 172,688,027.94 2017 628,729,822.81 561,365,913.22 2018 635,017,121.04 566,979,572.35 2019 641,367,292.25 572,649,368.08 Table 12 Computed Sales for five years operation
  • 89. P a g e | 89 Figure 21 Sales for the years 2015 - 2019
  • 90. P a g e | 90 TECHNICAL ASPECT
  • 91. P a g e | 91 Technical Aspect In this section shows the basic and operation flow of the business. Also the technical principles and practices in the implementation of the project. Technical aspect covers the materials, equipment, lay-out of the service, supplies of materials, structure plan, location and expenses. Technical aspect is one of the most important parts of the study because it covers the technicality of the service in your business. It also covers the availability of all the materials and properties of the business and it also requires that the location of the business is near to the location of the operations and also to the customer. Service Description Railway transport is a kind of transportation that can carry people and goods that the wheels are connected to the rails. It also called as train transport. Unlike vehicles running on land, rail road vehicles are running directionally lead on the pathways that are connected to the surface. Basically the tracks are steel rails that are installed in the railroad tie and track ballast, on which the rolling stock with an installed metal wheels moves. Railroad transportation is one of the most convenient modes of transportation today. Aside from being fast and cheap, it will cause you less time to go from one place to another because there is no traffic ahead. Most of the people that are going to work use this kind of transportation. One of major concerns of passengers going to Northern provinces is high fare because of the toll fees. Most people can’t afford to go to provinces especially the low – income class family.
  • 92. P a g e | 92 GRT Company is planning on reviving the railroad from Tutuban to Dagupan in order to help the passengers to go to these provinces in a fast way with cheaper price. The company aims to make the railroad more suitable to passengers especially to the low - income class family and also to allow traveling of goods coming from these provinces. Location Figure 22 GRT Company Office Location
  • 93. P a g e | 93 Figure 23 Satellite View Map Figure 24 Actual Site
  • 94. P a g e | 94 The site is located at 3F Natividad Building T.M. Kalaw Street Ermita, Manila with a measurement of 150 sqm. This business will be targeting the Manila - Dagupan Railway that was closed since 1939. This area will include offices, conference rooms, pantry, comfort rooms, lobby, elevators and parking space. Route Map Figure 25 Route Map Tutuban to Dagupan
  • 95. P a g e | 95 On figure, this will be the route map of the railway from Tutuban (Manila) to Dagupan (Pangasinan). It has a total distance of 214 km and has a travel time of 1 hour and 46 mins. Building and Facilities There will be stations in Tutuban in Manila, Bocaue and Malolos in Bulacan, San Fernando and Angeles in Pampanga, Capas and Tarlac City in Tarlac, and Bayambang to Dagupan in Pangasinan. Each stations consist of a manual type of ticket system and an automatic type of ticket system. It also have a ticketing system for PWD (Persons with Disability). GRT Company Office is located just 2.5 kilometers from the Tutuban station to easily monitor the line. All the stations of Manila – Dagupan Line will have the same appearance of building to easily recognize by the people. Tutuban Station
  • 96. P a g e | 96 Malolos Station Bocaue Station
  • 97. P a g e | 97 San Fernando Station Angeles Station