A Project feasibility study on manufacturing of insecticide from tobacco / Jennifer T. Balangatan.

Design Project (BS Industrial Engineering) Cavite State University

Includes bibliographical references.

College of Engineering and Information Technology (CEIT)

Tobacco plant is a leafy crop with a fibrous root system. Nicotine, coming from the utilized stalks, leaves, stem, scraps and dust of the tobacco plant is a potent botanical pesticide. Tobacco spray applied can reduced the population of beanfly and bean aphids. Tobacco dust can effect on tomato cutworm, leafhoppers, thrips, corn earthworm and leech.
Study was conducted to determine the feasibility of manufacturing of insecticide from tobacco. The feasibility was conducted at the Cavite State University. Surveys and interviews were conducted on the target localities of the project. The product was given a brand name "Tobacco Insecticide", because the main raw material is tobacco leaves. Tobacco leaves cured and fresh will be soaked for about 24 — 48 hours. A kilo of tobacco will need one liter of water. The extract can be used as spray for crops control insects that affects plants and crops. The products will be available in 250 ml, 500 ml and one liter capacity bottle. The insecticide will be distributed to the local market in the selected municipalities and city in the province of Cavite, specifically; Carmona, Dasmarinas, General Mariano Alvares, General Trias, Imus, Tanza, Trece Martires City, Alfonso, Amadeo, Indang, Maragondon, Mendez, Naic, Silang, and Tagaytay City. The study focused on the five aspect of the feasibility study: the marketing aspect, to determine the demand and market share of the product; technical aspect for the production process and different machinery and equipment to be used; organization and management aspect for the manpower requirement:, financial aspect for the financial terms of the study; and socio — economic aspect for the acceptability of the product
Marketing aspect discussed the projected demand in the target localities of the market, and the projected supply of the local manufacturer of different insecticides. The projected demand considered the demand on rice, yellow and green corn, leafy vegetable and orchids. It also discussed the projected demand in terms of hectares and the projected market share. The factors affecting the market include both internal and external factors such the population growth, the cost of raw materials and the occurrence of natural calamities and disaster. The marketing strategies to be applied are publications and preparations or distributions of brochures. Technical aspect discussed the feasibility of the project such as the manufacturing process, machinery capacity and design, raw materials and source of raw materials. The plant location will be in Blu Zircon, Trece Martirez City with lot size of 1200 square meters. The production process in producing tobacco insecticide include the preparation and weighing of tobacco leaves, grinding, soaking, filtering and packaging. The machineries to be used are grinding machine, filtering machine and sell round labeling machine, while the tools and equipment to be used are water tank, strainer and water host. Organization and management aspect include the form of business, organization structure, manpower requirement, job specifications and descriptions and compensation schedule. The proposed project will operate as a corporation. The company organization is by function. It has seven departments namely Administrative Department, Purchasing Department, Sales and Marketing Department, Production Department, Finance and Accounting Department, Human Resource Department and Safety Department. The manpower requirements are Manager, Secretary, Accountant, Accounting Clerk, Sale and Marketing Supervisor, Production Workers, Deliveryman, Purchasing Manager,
Purchasing Staff, Security Guard, Company Nurse/Safety Staff, Janitor, Driver, Chemist and Technician. It also discussed the occupational health and safety of the employees, company benefits and company rules and policies. Financial aspect discussed the major assumptions used to assess the financial viability of putting up a business engaged in the production of insecticide using tobacco as the primary material. The initial capital of Php 25,000,000.00 and Php 21,695,002.56 as the initial investment. The total production cost of producing tobacco insecticide is Php 64,624,426.15 and the net income is Php 13,872,637 for the first year of operation. Socio — economic aspect include the discussion of the following contribution of the project on the economy, the supply of tobacco insecticides for the farm industry, strong signal for investors, help tobacco farmers that produced the raw materials, help government in generating income through taxes, and employment generations and business opportunities. The results of the analysis of the five aspects lead the conclusion that the project was feasible and financially viable. It is highly and strongly recommended that the proposed project be implemented and introduced in the market.

Submitted to the University Library 03-17-2009 DP-277