This document presents a feasibility study for a proposed business called Synthetrix Manufacturing Incorporated that will manufacture paving bricks from used styrofoam and plastic bags. It describes the product, market analysis, production process, organizational structure, financial projections, and key feasibility metrics. The projections estimate that the business will break even after 2 years of operation and will have an average annual profit of over 2.7 million pesos.

1. BSIE 5-1
LAGUNSAD,
Divine E.
MAGTIBAY,
Edelyn J.
PACHOCO,
Aizel L.
“THE FEASIBILITY OF
MANUFACTURING
PAVING BRICKS FROM
USED STYROFOAM AND
PLASTIC BAGS”

2. In Partial Fulfillment of the Course
Requirement in PROJECT FEASIBILITY
STUDY (INEN 3222), we will be presenting
our project “The Feasibility of
Manufacturing Paving Bricks from used
Styrofoam and Plastic Bags” which aims to
apply Industrial Engineering techniques
and principles to develop a new
product/service that can be helpful
environmentally and economically.
INTRODUCTION

3. What are Paving Bricks or pavers?
Paving bricks are materials that are
manufactured to be laid flat on the ground.
They are different from the type made to
be used vertically for walls and chimneys
and other construction projects. They can
withstand both hot and cold temperatures,
snow and rain, and foot traffic.
THE PRODUCT

4. Asphalt
Concrete
Brick
Stone
Tile
Wood
Earth Materials
Synthetics
PAVERS CAN BE MADE FROM:

5. Are materials that look like the
natural product but are made from
unnatural material bonded together.
Examples
include, sponge, sponge
rubber, rubber mats, plastics, cork
and various combinations of these
with a binder coating material, such
as asphalt.
SYNTHETICS

6. Recycling
Plastic bag and foamed/expanded
polystyrene, or most commonly known as
Styrofoam, are major sources of waste
disposed in our country especially in Metro
Manila
Average of 2700 tons of these materials
dumped in Payatas everyday
Material properties such as thermo
plasticity which makes it possible to be
melted and formed into a new shape
WHY THESE RAW MATERIALS?

7. Company Name: SYNTHETRIX
MANUFACTURING INCORPORATED
Company Type: PARTNERSHIP
Product: PAVING BRICKS
Owners: LAGUNSAD, Divine E.
MAGTIBAY, Edelyn J.
PACHOCO, Aizel L.
COMPANY OVERVIEW

8. OUR INDUSTRY
CONSTRUCTION
INDUSTRY
Developers Constructors
Materials
Suppliers

9. 0
5000
10000
15000
20000
25000
2010
2011
2012
OUR TARGET MARKET

10. NICHING
MARKETING STRATEGY

11. Research and development related to
market needs and wants
Choosing the right channels of
distribution
Analyzing the company's strengths and
competitor's weaknesses to satisfy
customer's needs and wants
TACTICS

12. Medium scale construction
companies that have ongoing
projects and future contracts
OUR CUSTOMERS

13. Milestone Enterprises (Cement Pavers:
Php 21.00-30.00/pc)
AP Roque Enterprises (Cement Pavers:
Php 21.00-30.00/pc)
Manila Rubber Corporation (Ecobricks:
Php 14.00/pc)
OUR COMPETITORS

14. They have already establish a name and
good reputation in the industry
Their product line and materials
They have some big trusted clients
WHAT MAKES THEM OUR MAJOR
COMPETITORS?

15. PLANT LOCATION:
- Brgy. Kalawaan, Pasig City
- 1000 sq. meters of plant and office area
equipped with water and electric supply
PLANT FACILITIES
- A total of 9 machines: 7 densifiers and 2
plastic shredders
- A total of 22 production related workers
OPERATION AND DEVELOPMENT

16. OPERATION AND DEVELOPMENT
SYNTHETRIX MANUFACTURING INC.
Materials Suppliers
Material Supplier
EPS Foams Payatas Controlled Disposal Facility
Polyethylene Films Payatas Controlled Disposal Facility
Used Oil Hapi 24 Trading
Sand A.A. Alapilde Trucking
Paint Macnell Arci Paints
Plastic Sheets JMP Phils. Packaging Corp.
Corrugated Boards Goldar Ind’l Packaging Corporation

17. MACHINES
DENSIFIER – the main
machine that will be
used to transform
Styrofoam and plastic
bags into compressed
and stronger material.

18. MACHINES
PLASTIC SHREDDER -
This machine is where
the plastic
materials, both the
Styrofoam and plastic
bags are cut into tiny
pieces for easy melting.

19. Process Time
Shredding 105.75 mins
Melting 150 mins
Cooling 70 mins
Stacking 8 mins
Wrapping 1.4 mins
Total Time 397 mins (6.63 hours)
CYCLE TIME
Production Capacity = 3517 bricks 80% production
capacity

20. ORGANIZATIONAL CHART
General
Manager
HR Head
HR Staff
Accounting
Head/Bookk
eeper
Sales/Marketing
Head
Sales/
Marketing
Analyst
Operations
Head/QC
Coordinator
QC
Specialist/
Supervisor
Operators
Technician
and
Mechanical

21. FINANCIAL PROJECTIONS
17835978
19657174
21,669,366
22,752,827 23,306,916
2013 2014 2015 2016 2017
Projected Sales

22. 0.00
500,000.00
1,000,000.00
1,500,000.00
2,000,000.00
2,500,000.00
3,000,000.00
3,500,000.00
4,000,000.00
2103 2014 2015 2016 2017
Projected Income
FINANCIAL PROJECTIONS

23. 0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
2013 2014 2015 2016 2017
Projected Cash Flow
FINANCIAL PROJECTIONS

24. 0
0.5
1
1.5
2
2.5
3
2013 2014 2015 2016 2017
ROI NPM Cash Flow Ratio Debt Ratio
FINANCIALRATIOS

25. BE Volume
=
Fixed Cost
Unit Selling Price - Variable Cost
= 8,448,399.17
14.71 - 5.51
= 918,305 units to break even
BREAKEVEN ANALYSIS

26. Total Investment 6,000,000.00
Average Annual Profit 2,797,433.93
Payback Period = 2.14
PAYBACK PERIOD
Payback period of approximately 2 years, 1 month
and 21 days