Pdsepi Project Study

PDSEPI A Social Enterprise Project For Cavite Province

Proponent: Capt. Cezar Hernandez Dasmarinas, Cavite Prepared By: Pedrito A. Salvador PS Consulting Imus, Cavite February 12, 2008

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Title: PDSEPI A Social Enterprise Project for Cavite Province Company: Philippine Development for Social and Economic Progress Inc. Content: Project Study Proposal Date: February 12, 2008 This document is confidential. It needs authorization before re-distribution.

Executive Summary Vision Statement PDSEPI vision is to promote the development and welfare of Filipino society; enhancing accountability of improvement of social welfare services; facilitating field offices to better serve the community and advocating equality, justice, social integration and a caring society. Mission Statement PDSEPI mission is to establish an organization that is highly accountable, efficient, effective and responsive to social needs, upholding the long-term sustainable development of society and the well being of the Filipino citizens specifically the marginalized and the disadvantaged sector.

The Company PDSEPI was founded in February 2, 2008 and was designed to deliver vital social services and provide jobs to improve the economic life of its employees as well as its beneficiary, the Filipino people especially the marginalized and disadvantaged sector. It is a private non -stock, non-profit corporation with an initial office located at 24 Serrano St. corner 7th Avenue, Grace Park, Caloocan City, Philippines. Description of the Service By 2012, Cavite’s poor communities shall have met their basic needs and built their capacities for self reliance, genuine participation and involvement in effective governance, as well as equitable access to development opportunities. PDSEPI will deliver the following services in the province: A. Social Welfare Projects 1. Health Care Services Projects 2. Housing Projects

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3. Educational Services Projects 4. Construction/Improvement of Barangay Facilities 5. Special Projects for Disabled and Senior Citizens 6. Spiritual Development Projects 7. Environmental Management Projects B. Economic Projects 1. Creation and Organization of Cooperatives 2. Construction of Farm Irrigation Systems 3. Livelihood Projects 4. Farm to Market Roads 5. Agro-Industrial Projects 6. Tourism Projects Presently, PDSEPI project is subject for approval by the Financiers. The go decision is expected to happen within three months i.e. June 1, 2008. Once approved the company plans to follow the project plan and apply it initially in the province of Cavite.The project proponent thinks that Cavite is very suitable as an initial experimental location to start with since needed manpower and resources are easily available here. Moreover effective management and supervision can easily be established in this place. All challenges and resolutions that were experienced during the time of project implementation if applicable can be applied to the succeeding Philippine provinces. Critical factors in the delivery of the services however are the availability of qualified personnel, coordination with Local Government Units and potential security and safety of PDSEPI personnel specifically in the remote Barangay areas. Description of the Beneficiaries The target beneficiaries are the marginalized and the disadvantaged Filipino citizens now living in all municipalities and cities of Cavite. In 2007, they are estimated at 208,482 (8.6% of Cavite population of 2.42 million) or equivalent to 41,696 families (for a family of 5). These people for a long period of time have been deprived of with some of the basics necessities in life in terms of continuous availability of affordable foods, shelter, clothing, health care and education. The focus of PDSEPI is to help these people improve their social and economic lives by making them productive by increasing their income, improve their dignity and self- esteem, and increase their faith in God and to their fellowmen, thus enhancing their participation in nation building. Basic social services will be delivered to them at a very minimum or no cost at all and at the same time giving them jobs for continuous self-sustenance.

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Risk/Opportunity The risks that PDSEPI is seeing in the implementation of this project is the continuous increase in the price of petroleum products that will affect the operating cost in the management of the various social and economic projects. PDSEPI needs to continuously formulate effective strategies and action plans to face these challenge. Another risk is the continuous transfer of squatters from Metro Manila to Cavite and migration of people from other provinces to look for jobs in the economic zones. To compensate this, an average rate of 5.45% increase in population will be used every year in the computation. Fortunately, the continuous improvement of pesos over the dollar will reduce the cost of importing equipment, machineries, materials and technologies needed in the effective operations of PDSEPI. The project is also seen to minimize if not eliminate social problems in Cavite in the future. Management Structure The organizational structure was designed to meet all the stakeholders’ expectations and the organization’s goals and objectives. The organization will be headed by a president and will be supported by five vice presidents that will be incharge in handling Human Resource Department, Finance and Accounting Department, Operations Department, Logistics Department, and Research, Planning and Development Department. The men and women of the management team will be persons with high integrity, with deep working experience and possess wide exposure in leadership of people and resources. They will have a combined average minimum of twenty years of experience from different sectors of society i.e. government, education, military, manufacturing and services. A strong group of Board of Directors and Management Consultants will be available to guide top managements in executing their important duties and responsibilities. A Corporate Attorney will also be hired to handle all the legal accounts of the company. Capital Requirements A total of 81.76 Billion pesos is needed to finance all socio-economic projects to improve the lives of marginalized sector of Cavite province. With these projects, the economic group is estimated to yield a total of 871.79 Million pesos of income annually using an assumed conservative 10 % rate of internal return. Note that these economic projects are undertaken to give jobs to the affected marginalized sector of Cavite province.

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Socio-Economic Project Budget Summary Social Welfare Projects 1. Health Care Services Projects 2. Housing Projects 3. Educational Services Projects 4. Barangay Facilities Construction Projects 5. Projects forDisabled and Senior Citizens 6. Spiritual Development Projects 7. Environmental Management Projects Total Economic Projects 1. Cooperatives 2. Farm Irrigation Systems 3. Livelihood Projects 4. Farm to Market Roads 5. Agro-Industrial Projects 6. Tourism Projects Total

Project Budget

Php

9,753,050,000 27,102,400,000 27,036,200,000 3,067,000,000 191,700,000 290,150,000 707,350,000 68,147,850,000 Project Budget 2,777,150,000 1,974,000,000 1,212,550,000 650,000,000 82,550,000 67,500,000 6,178,750,000

Socio-Economic Total

74,326,600,000

10 % Contingency Sub Total

7,432,660,000 81,759,260,000

Php

PDSEPI Financial Budget To effectively implement the execution of all socio-economic projects, PDSEPI needs a total of 215.3 million pesos for its building and facilities while the organization will need a total of 9.87 billion pesos for its fixed capital operating expenses. The first six month of pre- operating period will require a total of 12.6 million pesos to handle all the necessary start- up expenses.

PDSEPI a social enterprise, will thus seeking an overall total of 91.86 billion pesos of financing assistance from a willing and humanitarian investor to fully assist in improving the lives of marginalized Filipino Citizens of Cavite province.

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Project Timetable Activity

Target Completion

PDSEPI Project Study Approval

June 2008

Budget Release

June 2008

Building/Facilities Construction

November 2008

Executives Recruitment

July 2008

Manpower Recruitment/Training

October 2008

Kick-Off

December 2008

Start -Up Operation

January 2009

Conclusion PDSEPI will commence its major operation on the first week of January 2009 at a budget of 91.86 billion pesos.

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Table of Contents Page Executive Summary Table of Contents Introduction Description of the Project Mission Company Overview Company policy Description of the Service Social welfare projects Economic Projects Description of the Beneficiaries Management Structure Operations Management Purchasing Policy Human Resources Management Human Resource Policy Department Functions Manpower Summary Risk/Opportunity Capital Requirements Financial Evaluation Assumptions Socio-Economic Projects Budget Plan Socio-Economic Annual Revenue Fixed Capital Operating Budget Building/ Facilities Budget Pre-Operating Budget Manpower Budget Projected Variable Operating Expenses Conclusion

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Appendixes

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1. Analysis of Social Developments

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2. Cavite Province Profile: 2007

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3. List of Cities and Municipalities

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4. Cavite Poverty Incidence Map

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5. Annual per Capita Poverty

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6. Cavite Political Divisions

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7. Millennium Development Goals

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8. E-Procurement Systems

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9. Enterprise Resource Planning

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10. JIT and Purchasing

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11. Minimum Wage Calabarzon

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12. Nominal and Real Wage

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13. Maps of Cavite

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Introduction The Philippine Situation The Philippines is ranked as a lower Middle Income Country (US$1,300 per capita in 2005), but is beset by extreme inequality of wealth distribution. Between 1999 and 2004, per capita income in nominal terms increased annually by 2% on average. A combination of relatively slow economic growth (some 4% average in the past decade) and high population growth explains this minimal improvement. The unemployment rate has remained at around 11% since 2000, leading to more and more Filipinos seeking work outside the country, with accompanying high social costs. While the Philippines is not a poor country, it is nevertheless a country with a lot of poor people: about 30 % of its total population, some 30 million people live below the National Poverty Line (European Commission-Philippines Strategy Paper 2007-2013). See Appendix 1 The country has not achieved sufficient economic progress over the past decades to substantially reduce poverty, due mainly to high population growth, lack of employment creation, rampant corruption, feudal politics and insurgencies, one communist-inspired, the other triggered by Islamic separatism. Combined with the lack of a national policy to slow its 2.3% annual population growth, its ability to achieve the Millennium Development Goals (MDGs) is seriously compromised (see Appendix 7). The Philippines lags economically behind the rest of the region and has recently been facing a severe fiscal crisis, with the highest deficit in the region of 5 % of GDP. At the same time it needs to service a national government debt of 78% of GDP. The Philippines is witnessing an erosion of confidence in elected government and political institutions, coupled with a feeling of impotence to achieve substantial change towards a more equitable distribution of wealth. Although some measures to redress the fiscal balance have been taken, more economic reforms are necessary to sustain the momentum. Fighting Poverty. The first pillar in fighting poverty is anchored on the experience of most countries in East Asia where, through sustained economic growth, poverty incidence was reduced by at least half in just two decades. Growth reduces poverty by creating employment and raising incomes. With growth also come higher public revenues that can finance basic education and health care, and infrastructure, which is critical for bringing down costs and raising productivity to spur further growth. Sustained growth is thus good for the poor.

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The second key element, social development, is necessary to enable everyone to participate in growth. There are people who are poor because of personal circumstances that lead to inferior income prospects. Owing to low levels of human capital investment, partly because of lack of access to basic services (e.g. education, health, nutrition), or the absence of complementary inputs to increase their outputs (e.g. credit, technological and market information), the poor are often denied opportunities to advance economically. Some people are poor also because they may lack the ability to manage risk and, therefore, become vulnerable to adverse income shocks arising from fluctuations in the economy. Social development calls for targeting interventions to assist certain groups or sectors of the population that are likely to be marginalized by the growth process. Finally, good governance is critical to poverty alleviation because it makes sound macroeconomic management, which is important for growth, possible, and paves the way for participatory, pro-poor policies. Good governance ensures transparency in the use of public funds, encourages private sector growth, promotes effective delivery of public services and helps to establish the rule of law.” These key elements are expected to lead to socially inclusive development. The main challenges therefore for the Philippines are to: • reduce poverty through stronger job creation and better access to services, especially social services, as well as to employment and income earning opportunities for the poor; and • achieve a more equitable distribution of wealth through economic, social and political reforms. Cavite Province According to Asian Development Bank (Poverty in the Philippines: Income, Assets, and Access, January 2005, page xvii) successive governments of the Philippines since 1985 have attached a high priority to poverty reduction, but had only moderate success in reducing the overall headcount, and outright failure in reducing the absolute number of poor Filipinos. Moreover quoting more from the ADB book (Poverty in the Philippines: Income, Assets, and Access, January 2005, page xii) there were four million people more poor in 2000 than there were in 1985. Likewise, the poverty incidence of families has increased from 28.1% to 28.4% between 1997 and 2000. Cavite province was one among the provinces of the Philippines that has been affected with this problem. In 2003 and 2004 Cavite made it to the top 10, in terms of Provincial Poverty Threshold at Php 16,128 and Php 15,950 respectively. At the end of 2007, it further aggravates to Php18, 019 (see Appendix 2). Finally the book mentioned, that the number of poor people in the Philippines will continue to increase.

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In this context, the main objective of PDSEPI is to support the Philippine government in the sustainable reduction of poverty. This project was envisioned to start in the province of Cavite. Moreover, this objective will be pursued through the provision of assistance to equitable access to social and economic services through budget support and sector-wide approaches (on the basis of decentralized development, i.e. through coordination and cooperation with local government units). This will be complemented by a focused range of actions funded through various thematic and budget lines and other programs. This will be the basis how PDSEPI will approach its vision and mission.

Description of the Project This project study will delineate the different policies, and strategies in the implementation of the programs needed to meet the goals and objectives of the company. The study will also define the set of activities and the organization functions to make the operations more viable and successful. The study will also present the initial budget needed to finance the operational activities for the areas identified and classified as vital thus requiring an immediate attention and action. Mission Statement The company’s mission is to establish an organization that is highly accountable, efficient, effective and responsive to social needs, upholding the long-term sustainable development of society and the well being of the marginalized Filipino citizens. The company aspires to develop a reputation as being one of the prime movers in the development of economic and social needs of Filipinos that belong to the marginalized sector of society. They will be empowered to meet their minimum basic needs of health, food and nutrition, water and environmental sanitation, income security, shelter and decent housing, peace and order, education and functional literacy, participation in governance, family care and social integrity. This can be achieved thru effective management of people and resources as well as a good coordination with the local government units and different stakeholders. The company shall address this fight against poverty through a multi-dimensional and cross sector approach which recognizes and respect the core values, cultural integrity and spiritual diversity of target sector and communities.

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Policy, programs, and resource and commitments shall be clearly defined to ensure accountability and transparency in the execution and implementation of all identified projects. To accomplish the goal and objectives, PDSEPI needs enough capital, the highest available management talent with each having an utmost integrity and credibility, and an efficient and modern office facility that will provide fast technical support in the execution of social welfare and economic projects. In pursuit of the goal, PDSEPI will resolve to treat stakeholders, beneficiaries and the community with service that don’t last. These groups will see the company as partner in continuous progress today and to the future.

Company Overview PDSEPI was founded in February 2, 2008 and was designed to deliver vital social services and provide jobs to improve the economic life of its employees as well as its beneficiary, the Filipino people specifically the marginalized citizens. The legal name of the company is Philippine Development for Social and Economic Progress Inc.It is a private non -stock, non-profit corporation with an initial office located at 24 Serrano St. corner 7th Avenue, Grace Park, Caloocan City, Philippines. After approval of this project study, the company will transfer and will be housed in a 15,000 sq. meters lot area that will include both the building and all the facilities required to fully operate the company efficiently and effectively. An area of 2,500 sq. meters will be allocated for the building, 2000 sq. meters for the warehouse and the rest space for other facilities. All departments will be under one roof to facilitate fast communication and interaction. It is expected that the building facility will be adequate for the company’s needs for five years operation. PDSEPI Core Values At PDSEPI, the company believes in doing a great job for the beneficiary, employees and other stakeholders by being the pre-eminent building-block social welfare service provider to the Filipino society. The company’s values are put into practice each day by PDSEPI employees, and govern how they deal with their communities and each of their beneficiaries. These values are at the heart of everything they do. Risk Taking — Employees strive to: •Foster innovation and creative thinking. •Embrace change and challenge the status quo. •Listen to all ideas and viewpoints. •Learn from successes and mistakes.

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•Encourage and reward informed risk taking.

Quality — Employees strive to: •Achieve the highest standards of excellence. •Do the right things right. •Continuously learn, develop and improve. •Take pride in their work. Great Place to Work — Employees strive to: •Be open and direct. •Promote a challenging work environment that develops diverse workforce. •Work as a team with respect and trust for each other. •Win and have fun. •Recognize and reward accomplishments. •Manage performance fairly and firmly.

Discipline — Employees strive to: •Conduct business with uncompromising integrity and professionalism. •Ensure a safe, clean and injury-free workplace. •Make and meet commitments. •Properly plan, fund and staff projects. •Pay attention to detail.

Results Orientation — Employees strive to: •Set challenging and competitive goals. •Focus on output. •Assume responsibility. •Constructively confront and solve problems. •Execute flawlessly. Beneficiary Orientation — Employees strive to: •Listen and respond at once to beneficiary, suppliers and stakeholders enquiries •Clearly communicate mutual intentions and expectations. •Make it easy to work with them. •Excel at stakeholder satisfaction. Company Policy

PDSEPI shall always seek to conduct business with the highest standards of excellence and integrity. A core component of Discipline value is to conduct business with uncompromising integrity and professionalism. The drive for excellence touches every aspect of the service functions. Whether in beneficiary interactions, oversight of contractor safety or stakeholder engagement in local communities, the “How” is as important as the “Why”. 13

PDSEPI Corporate Principles (PCPs) serve as the backbone for guiding the employees including officers as they conduct their job and responsibility. PDSEPI believe that this policy shall be transparent and available for both the internal and external stakeholders. The PCPs are intended to express the company’s commitment to ethical and legal business practices. These principles define a minimum set of ethical standards for all employees. PDSEPI adheres to strict standards of honesty and conducts business with uncompromising integrity and professionalism.

These principles: •Shall be reviewed on a regular basis for the company is committed to apply

internal management systems and reporting structures to ensure adherence to these principles across the organization.

Accordingly: •PDSEPI respects, values and welcomes diversity in its workforce, its

beneficiaries, and its suppliers. The company will comply with all applicable laws and provide equal employment opportunity for all applicants and employees without regard to religion, sex, national origin, ancestry, age, disability, veteran status, marital status, sexual orientation or gender identity. This applies to all areas of employment. The company also provides reasonable accommodation to disabled applicants and employees to enable them to apply for and to perform the essential functions of their jobs. •The company shall provide a workplace free of sexual harassment as well as

harassment based on religion, sex, national origin, ancestry, age, disability, veteran status, marital status, sexual orientation or gender identity by managers, co-workers or non-employees in the workplace. •PDSEPI is committed to achieve high standards of environmental quality and

service safety, and to provide a safe and healthful workplace for the employees, contractors, and communities. The company strives to comply with all applicable regulatory requirements as a minimum and implement programs and processes to achieve greater protection, where appropriate. The company also seeks a healthful and safe workplace, free of occupational injury and illness. PDSEPI strive to conserve natural resources and reduce the environmental burden of waste generation and emissions to the air, water, and land.

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•PDSEPI expects its suppliers to comply with applicable laws concerning

occupational health, safety and environmental protection, to strive for a workplace free of occupational injuries and illnesses, and to engage in construction projects that minimizes impact to the environment and the community. The company expects suppliers to maintain progressive employment practices that meet or exceed all applicable laws. These include nondiscrimination in employment practices, prohibiting the use of child or forced labor, providing minimum wages, employees’ benefits and prescribed work hours. In the event local standards do not exist, suppliers shall nonetheless establish progressive employment practices. •PDSEPI shall provide a secure business environment for the protection of the

employees, product, materials, equipment, systems and information. •The company prohibits bribes and kickbacks. PDSEPI employees may not offer

or accept a bribe or a kickback. Bribes and kickbacks are prohibited either directly or through a third party. •PDSEPI is committed to complying with all applicable laws in the country. This

includes laws regarding: minimum ages for employment; minimum wages and overtime compensation; benefits; discrimination and affirmative action; employees’ right to raise issues and work collectively for their mutual benefit; and health and safety. PDSEPI Corporate Principles To help guide employees to make the best possible decisions, PDSEPI has created the PDSEPI Corporate Principles (PCPs). Although they are not a detailed manual for resolving every question or conflict, the PCP’s have been designed to provide useful guidance about the way employees are to do business every day. The PCP’s apply to all officers and employees of the company. References to “employees” refer to directors, officers and employees of PDSEPI. In work environment, the employees often face challenging and ambiguous issues. It is their responsibility to work through those issues in a disciplined fashion and reach the right result for the company, its stakeholders and employees. Ultimately, the employees are responsible for their actions. PDSEPI is committed to conduct business with uncompromising integrity. The PCP’s which are detailed below with the addition of several other policies, help employees to meet that critically important commitment. Ethics and Compliance Honest and ethical conduct, including the ethical handling of actual or perceived

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conflicts of interest between personal and business relationships, is the rule every day and for all that employees do Bribes and Kickbacks PDSEPI position on bribes and kickbacks is simple: they are not appropriate business behavior, they are usually illegal, and they are not allowed. A bribe is a thing of value given to someone with the intent of obtaining favorable treatment from the recipient. Kickbacks consist of payment in cash or in kind, including goods, services, the use of another company's property, or forgiving any sort of obligation provided to a customer or supplier for the purpose of improperly obtaining or rewarding favorable treatment in connection with a sale or purchase. Bribes and kickbacks may not be offered either directly or through another party. If a supplier offers a PDSEPI employee a bribe or kickback, the employee shall report the attempt to his/her manager. The employee's manager then shall report the attempt to the Purchasing Manager. Receiving Gifts and Gratuities Any form of a gift that obligates an employee to act in a particular manner with regard to PDSEPI business is a bribe and is not allowed, regardless of its value. Cash gifts are not allowed, whether, for example, for referring a PDSEPI employee to a search firm, for purchasing favors or for sales to outside parties. A sample provided by a supplier for evaluation purposes is PDSEPI property and is not for personal use or profit. In some limited circumstances it may be customary or appropriate to exchange gifts and entertainment with suppliers, and it similarly may be customary and appropriate to arrange or take part in programs and events that include meals and lodging. Some sample situations:

•Business-meal discussions with a supplier are legitimate. A free private meal for an employee and spouse is not a legitimate function. •Speaking at a continuing education program where the sponsor pays for the related travel and lodging is legitimate if the employee’s manager reviews and approves the business-related purpose of the event. •Generally, it is not appropriate for an employee to accept a supplier’s invitation to attend an entertainment or sporting event at the supplier’s expense. An invitation to an entertainment or sporting event such as a golf or tennis tournament may be appropriate if it demonstrably helps to build or maintain a business relationship. Before accepting such an invitation, an employee must obtain approval from his Superior, or Manager of Purchasing. Sound

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judgment is necessary for determining when invitations to such events are appropriate. The key is to keep an arm’s length relationship and avoid excessive or lavish gifts or events that may give the appearance of undue influence. An employee shall also avoid personal financial transactions with suppliers that may influence the employee's ability to perform his or her job. As a related point, you may not take for yourself any opportunity for financial gain that you find out about because of your position at PDSEPI or through the use of company property or information. A personal gift from a supplier, unrelated to a legitimate business event, is not acceptable. Gifts of a commercial or promotional nature are acceptable only if their value does not exceed Php 100. If an employee recipient is not sure of an item's value, the employee shall use common sense to attempt to determine fair market value; and if any question exists about whether the gift is excessive in value, then the item should be returned. If it cannot be returned, the gift shall be used as a door prize or for raffles at company functions, given to a charitable organization or distributed within PDSEPI in such a way that the value rule is not violated. For example, a gift of snack food during a holiday could be shared within the business unit of the recipient. If an employee knows that he or she will receive a gift of value, he or she can suggest that instead of the gift, a donation be made in the giver’s honor to a charity. Employees always shall inform their managers when receiving gifts or gratuities if anyone could perceive a conflict of interest, even if the employee doesn't believe the favor would violate the guidelines. Likewise, when unsure about proper conduct, employees shall describe the situation to their manager. If more direction is needed, seek input from HR, or Company Purchasing authorities.

Giving Gifts and Gratuities Equivalent rules apply to the giving of gifts. Obviously, they shall not be offered as bribes. Employees shall also take care to avoid giving gifts that are intended to be innocent but may be construed as a bribe. Gifts and entertainment for LGU’s officials, and suppliers must support company’s legitimate business interests and should be reasonable and appropriate under the circumstances. Consistent with the obligation, every employee has to act with integrity and honesty at all times. No employee shall take unfair advantage of anyone through misrepresentation or any unfair business practice.

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Some sample situations:

•It is permissible to give away plaques, supplier awards and prizes that are part of official company programs. • Free access to company resources or assets, such as computer time, and scrap or excess materials, is expressly forbidden. . Employees always shall inform their managers when considering giving gifts or gratuities if anyone could perceive a conflict of interest, even if the employee doesn't believe the favor would violate company’s guidelines. Likewise, when unsure about proper conduct, employees shall describe the situation to their manager. Special Government Ethics Rules Conducting business with government is not the same as conducting business with private parties. These transactions often are covered by special legal rules. The employee shall consult the Legal Department to be certain that he or she is aware of any such rules and must have approval of the Legal Department before providing anything of value to a government official. PDSEPI prohibits the payment of bribes to government officials. “Government officials” are employees of Philippine government including low-ranking employees or employees of government-controlled entities. The term “government officials” also includes political parties and candidates for political office. It is the employee’s obligation to understand whether someone he deals with is a government official. The prohibition on bribes applies to third parties acting on behalf of PDSEPI, including all contractors and consultants. Employees must not engage a contractor or consultant if the employee has reason to believe that the contractor or consultant may attempt to bribe a government official. PDSEPI may hire government officials or employees to perform services that have a legitimate business purpose, with the prior approval of his manager. For example, an off-duty police officer might provide security. Government officials shall never be hired to perform services that conflict with their official duties. Conflict of Interest and Disclosure All employees shall avoid any activity that is or has the appearance of being hostile, adverse or competitive with the company, or that interferes with the proper performance of their duties, responsibilities or loyalty to PDSEPI. Employees shall always inform their managers when confronted with any situation that may be perceived as a conflict of interest, even if the employee

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doesn't believe the situation would violate PDSEPI guidelines. Likewise, when unsure about proper conduct, employees shall describe the situation to their manager. If, after checking with any affected business units, the employee's manager concludes that there is or may be a perceived conflict of interest, the manager should consult with the Legal Department. The Legal Department shall work with the Purchasing Manager, or appropriate employee management to determine if there is a real or perceived conflict of interest. If a conflict exists, it may be necessary to transfer that employee, require the employee to divest himself or herself of the interest, or remedy the situation as a condition of continued employment. Influencing the Business of a Supplier If an employee is in a position to influence the business situation of a supplier, the employee shall disclose to his or her manager all financial, proprietary or other types of controlling or influencing interests (for example, through a member of the immediate family or a close personal friend) that the employee may directly have. (Note: Financial or proprietary interest includes investments and loans.) Any employee in a position to influence the purchases of materials or services shall formally disclose any situation wherein a member of the employee's immediate family or a close personal friend is employed by a PDSEPI supplier. In such a circumstance, the employee may be required to take steps to avoid an actual or perceived conflict with the interests of the company. These steps may include disposing of the financial interest, resigning as officer or director of the supplier or customer, or transferring to another job within the company. Personal Investments in Suppliers, or Other Companies An employee is not prohibited from making a personal investment in a company just because it might be a supplier of PDSEPI or have some other business arrangement with the company. However, under the law any such investment may only be made so long as it does not involve the misuse of inside information. In addition, under these PCPs such an investment may only be made so long as it does not create an actual or perceived conflict of interest with PDSEPI. One way to avoid these potential issues is to invest in companies that do not have business relations with the company. As another alternative, you may want to consider investing in a fund whose investments are chosen by persons not related to yourself, such as the fund managers or sponsors. You shall also understand that some business units have decided to adopt more restrictive rules concerning personal investments in companies with relations with PDSEPI, and each employee is responsible to know whether his or her business unit has any such rules in place.

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Employees who are in a position to influence decisions about PDSEPI investments in other companies may not trade in the shares of those companies. Outside Employment An employee may not directly or indirectly conduct outside business that interferes with the proper performance of the employee's job at PDSEPI, is conducted during an employee's normal working hours, utilizes company’s confidential information or specialized skills and knowledge gained as an PDSEPI employee, or puts the employee in a situation where company’s confidential information may be used intentionally or unintentionally. This restriction includes having some types of part-time jobs, becoming a contractor, consultant or supplier to PDSEPI while being employed at the company Subsequent Employment with Supplier PDSEPI shall not conduct business with a former employee who becomes employed by a supplier or who offers his or her services as an independent contractor for a period of 12 months from the employee's termination date, without prior written approval from the Vice President of Logistics or the Purchasing Manager. Outside Director or Board Adviser Positions An employee seeking to accept a position on a board of directors or board of advisers of a for-profit or non-profit must first seek and obtain permission in accordance with procedures maintained by the Legal Department for the purpose of better avoiding conflicts of interest and minimizing potential liability to PDSEPI. This requirement does not apply to a board position for a local nonprofit organization such as a hobby club, residents' association, or religious group, where the likelihood of any such conflict of interest is low. Taking Corporate Opportunities for Personal Gain You may not take for yourself any opportunity for financial gain that you find out about because of your position at PDSEPI or through the use of company property or information. For example, PDSEPI employees may not participate in any directed shares programs offered by other companies, if the offer was made because of the employee's position at PDSEPI.

Political Positions Political positions shall be treated like other examples of possible conflicts of interest. An employee may not hold a political position that interferes with the proper performance of the employee's job at PDSEPI. The employee shall need to

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choose between the PDSEPI role and a political position of that type. Any employee who wishes to take on a political position shall first disclose this fact to his/her manager and must consult with Legal Department to understand potential conflicts of interest in the political role given his/her PDSEPI employment. To avoid confusion and the appearance of any conflict of interest, an PDSEPI employee working in a political role must communicate clearly that he/she is not representing PDSEPI or its views in his/her political capacity and that the views expressed are his/her own and not those of PDSEPI. Corporate Records Management All employees shall be aware of PDSEPI record retention guidelines and adhere to them in all aspects of their daily work. Employees shall also: •Retain in the office only records that are needed for critical ongoing projects or for other essential business reasons. •Remember that a record can consist of text, graphics or photographic images and is media-independent. Employees shall apply the same standards to electronic records as they do to those in hard-copy form. •Retain records regarding employment and personnel matters consistent with the records retention guidelines. In many cases, these records must be kept for a much longer time period than other types of documents. Software Compliance PDSEPI policy is to always pay for software when payment is expected or required for company related business, or when software is used on PDSEPI equipment or PDSEPI premises. Software shall be used according to applicable copyright laws, software licensing agreements, and PDSEPI guidelines. "Software" includes, but is not limited to, any and all applications programs, video and audio files (for example MP3, MPG, AVI and so forth). PDSEPI requires that each employee, as well as those employees of temporary agencies or contractors, become familiar with, understand and comply with permitted uses of software. Employees are prohibited from obtaining or using software that is not paid for, obtaining or using illegal copies of software, making or distributing illegal copies of software, and using software in any way that violates any law, license agreement or PDSEPI guideline. "Obtaining or using" refers to borrowing, copying, downloading or acquiring by any other means. All managers and employees are required to follow these principles in all aspects of work that they conduct for PDSEPI and any of their activities that use PDSEPI equipment or are done on PDSEPI premises. Particular methods of implementing

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these principles shall vary depending on the situation and the applicable software license agreement. An employee with any questions shall contact the Legal Department. Environmental Health & Safety PDSEPI is committed to achieve high standards of environmental quality and product safety, and providing a safe and healthful workplace for employees, contractors and communities. The company shall comply with all applicable regulatory requirements as a minimum, and implement programs and processes to achieve greater protection, where appropriate. The company shall work with stakeholders to develop responsible laws, regulations and innovative programs that provide safeguards for the community, the workplace and the environment while providing flexibility to meet the needs of the business. The company seeks a healthful and safe workplace, free of occupational injury and illness. PDSEPI emphasize individual responsibility for safety by all employees and at all levels of management. The company expects employees to report potential safety hazards and issues, and be involved in implementing solutions. To maintain a safe work environment, employees are prohibited from possessing or using illegal drugs on PDSEPI premises or reporting to work under the influence of illegal drugs or alcohol. The company strives to conserve natural resources and reduce the environmental burden of waste generation and emissions to the air, water and land. The company shall strive to be leaders in reducing, reusing and recycling, and the company expects employees to implement measures to properly dispose of any remaining wastes in a safe and environmentally sound manner. The company shall be a responsible member of the communities in which it live and work. The company shall establish and maintain appropriate controls, including periodic review, to ensure that this policy is being followed.

Strategic Alliances PDSEPI shall seek strategic alliance with Local Government Units, NGO’s, Barangay Officials, contractors and suppliers. The idea is to facilitate fast issuance of permits and payments on any company to government business transactions. Strong coordination with stakeholders shall not only promote good communication but also provide smooth mobilization of resources from one area to another.

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Description of the Service General Policies and Strategies The following general policies and strategies shall be implemented to address the company’s services. Effective access to basic services and development opportunities shall be enhanced by: 1. Ensuring funding, operationalization and monitoring of allocated budget. 2. Allocating resources to basic social services, such as basic education and training, primary health care and nutrition, and housing which have a greater impact on reducing poverty. 3. Targeting areas and population groups where social development needs are greatest. Harnessing the complementary roles of local government, the private sector, civil society and the community in the development of human capabilities, through principles of convergence, cooperation and teamwork. Addition of more cost-effective social service delivery and financing mechanism. This may include the provision of support directly to targeted vulnerable groups. Strengthening the role of families and communities in addressing the needs of their members, particularly in times of stress and crises brought about by societal changes and modern living. Seeking unity in diversity by respecting ethnicity while pushing for national unity. Harnessing culture, the arts and media as the main vehicle for inculcating moral principles in the people’s daily lives and targeting families as basic hints for evolving national ideology. Strengthening incentives and the systems of merits and rewards for persons and organizations exemplifying virtue, professionalism, and societal contribution, so as to create role models and leaders. Health Care Services 1. The company shall focus on the prevention and control of leading communicable, non-communicable and lifestyle related diseases as well as conditions arising from environmental and occupational hazards. 23

a. Construct enough hospitals and health care centers as needed. b. Invest in programs to address emerging health problems c. Allocate enough budgets for efficiently-managed health promotion and disease prevention programs. d. Set up of pharmaceutical centers in every Barangay to act as primary source of affordable priced drugs. This needs also an effective supply chain management of drugs and medicine including its continuous delivery and effective pricing mechanisms. 2. Upgrade the management infrastructure of public health offices. a. Strengthening the field health offices and setting partnership arrangements with local government units. b. Assume availability of doctors, dentist and nurses and midwifes in every Barangay Health Centers. c. These health personnel shall be given above average compensation and benefits. d. Increasing people and community participation in health and nutrition activities and decision making and sustaining people’s health awareness through intensified advocacy and information, education and communication campaigns e. Assisting government to promote for couples and parents in achieving desired family size within the context of responsible parenthood. Education, Training, and Manpower Development Strategies Adopting an effective fund mobilization scheme to ensure the adequacy of financial support to all phases of education, training, priority programs and institutions. 1. Widening the utilization of tested and cost effective non- conventional /alternative learning strategies and delivery systems. 2. Improving the system of monitoring and evaluation by developing appropriate and effective sets of performance indicators. 3. Integrating principles of human rights in all phases of training so as to mold youth and future leaders to respect the dignity of every person regardless of sex, dialect religion, political or other opinion, national or social origin, property, birth or other status. 4. Develop the basic training structure and program adequate and responsive to the requirements of the labor market and higher levels of learning. 5. Support the improvement of the teaching process and learning environment and promote the use and gradual expansion of application of information technology.

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Urban and Rural Poor Housing Strategies 1. Housing is both a component of social policy and instrument for economic growth thus housing assistance is of paramount activity of the company. 2. Participating in proactive local urban planning will be pursued and observed in coordination with key LGU’s. 3. The company shall identify and provide the housing needs of the beneficiaries at a very minimal monthly amortization. 4. The company shall monitor and evaluate the construction performance up until the house is awarded to the beneficiary. 5. The company shall also provide assistance and training in the post housing development of the beneficiaries. This is to assure that proper house maintenance know- how is given to all the beneficiaries. Barangay Development 1. Promote community and social welfare interventions for the poor, vulnerable, disadvantaged and marginalized sectors including children, youth, women, persons with disabilities, indigenous peoples, victims of disasters, victim of human rights violations , older persons, dysfunctional families and depressed communities using the total family approach. 2. Adopting a total family approach to address sectoral concerns, through the formulation of and advocacy for policies and programs to strengthen the family. 3. Strengthening community based mechanisms such as the Barangay council for the protection of children and the Barangay human rights action center for the protection of the rights of the poor, vulnerable and disadvantaged sectors, and their mobilization in actions against exploitation and abuse. 4. Strengthening the data base for monitoring the situation of the poor and vulnerable groups. PDSEPI shall deliver the following detailed services in the province of Cavite: A. Social Welfare Projects 1. Health Care Services in the Province • •

• • • • • •

One Health Center Bldg/Facilities per Barangay Health Care Support Programs a. Information Campaign b. Health Subsidy per family Barangay Botica 2. Housing Project (41,696 units) Site and Land Preparation House Construction Transfer to Site Monetary Assistance Support Facilities 3. Educational Services in the Province One ES/HS Bldg/Facilities per Barangay

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Education Subsidy for 2 college students per family Support Programs o -Teachers Effectiveness Training o -Teachers Scholarships Grants 4. Construction of Barangay Facilities A. Barangay Halls Improvement • Barangay Tanod Allowance • Patrol Cars B. Construction of Potable Water Systems per Barangay • Barangay Aqua Puro C. Construction of Recreational Facilities per Barangay • Barangay Parks • Youth and Senior Sports Facilities 5. Special Projects for Disabled and Needy Persons per municipality and city A. Disabled Persons • Free Equipments for persons with handicap • Medical Assistance for Special Treatment B. Assistance to Senior Citizens per Barangay o Food, Clothing and Personal Allowance o Death Assistance 6. Spiritual Development per Barangay • Chapel Construction/Improvement • Spiritual Materials • Spiritual Training and Education 7. Environmental Projects in the Province • Reforestation/Tree Planting • Seedlings Bank B. Economic Projects 1. Creation and Organization of Cooperatives per municipality and city • Credit Cooperative • Consumer Cooperative • Technical Support Facilities 2. Construction of Farm Irrigation Systems per Agricultural Barangay 3. Livelihood Projects per Applicable Barangay • Vegetable Farming • Piggery and Poultry Raising • Goat Raising • •

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• Fish Farming • Food Processing • Technical Education and Support 4. Farm to Market Roads for low income Municipalities (see Appendix 4) 5. Agro-Industrial Projects per municipality • Post Harvest Facilities • Feed Mills • Technical Education and Support 6. Tourism Projects in the province • Eco- Tourism • Resorts and Restaurants Presently, PDSEPI is in the introductory stage. PDSEPI plans to follow the services project plan and apply them to per Barangay per municipality and city in the Philippines in the future. Initially PDSEPI will use the province of Cavite as a starting point. Note that most of the organizers came from this province and effective management and supervision are therefore can easily be initially established. All challenges and resolutions that were experienced can be applied to the next succeeding priority Philippine provinces. Critical factors in the delivery of the services however are the availability of qualified personnel, government bureaucracy and potential security and safety of PDSEPI personnel especially in the remote Barangay areas.

Description of the Beneficiaries The beneficiaries are the marginalized and the disadvantaged Filipino citizens now living in Cavite. In 2007, they are estimated at 208,482 (8.6% of Cavite population of 2.42 million (see Appendix 2). These people for a very long period of time have been deprived of with some of the basics necessities in life in terms of continuous availability of affordable foods, shelter, clothing, health care and education. The focus of PDSEPI therefore is to help these people improve their social and economic lives by making them productive and increase their income, improve their dignity and self esteem, and increase their faith in God and to their fellowmen and thus enhancing their participation in nation building. Basic social services will be delivered to them at affordable or no cost whichever is applicable and at the same time giving them jobs for continuous self sustenance.

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Management Structure

President

VP

VP

VP

VP

HRD

Finance and Accounting

Operations

Logistics

VP Research, Planning and Development

The organizational structure is designed to meet all the stakeholders’ expectations and the organization’s goals and objectives. The men and women of the management team will be persons with high integrity, deep in working experience and have wide exposure in leadership of people and resources. They will have a combined minimum of twenty years of experience from different sectors of society i.e. government, education, military, manufacturing and services. Professional Support The company will be supported by a high caliber corporate attorney and professionals from well known accounting firm and management consulting firm. Board of Directors The BOD Team that will be invited and secured for assistance and support are business and industry experts that will help in the decision making, strategizing, and opportunity seeking process.

Operations Management Operations Policy The general policy of the company is to subject all major projects if applicable and possible to outsourcing using the process of effective and honest bidding. Later an E-procurement system (see Appendix 8) and an Integrated ERP System (see Appendix 9) will be introduced and used to provide an efficient resources management system. The company shall also use the latest communication 28

gadgets and computer/software technologies in other areas such as project scheduling, human resource management and financial management to promote efficiency and productivity. Local available skilled and non- skilled workers shall be prioritized and utilized in the construction of applicable projects. They shall be trained though with the company’s core beliefs and philosophies to enhance quality of work output. The principles of Just-in-Time systems(see Appendix 10) shall also be implemented wherever it is applicable to minimize inventories. Just –in-time purchasing shall be established with the suppliers to reduce operating cost and encourage fast movement of materials, equipments and other needed supplies. Fixed Capital Expenditures Budget Summary Item

Building Facility Equipments Service SUV Service Van Elf Truck Pick Up Truck Lap Top Computer Desk Top Computer Steel Cabinet Office Table/Chair Cellular Phone Landline Com/Bband Internet Printer Training Equipment TV LCD Projector DVD Player Amplifier Audio Equipment Photocopier Auto CADD Plotter Radio Communication Conference Furniture Canteen Equipments Cashier Gas tanks Freezer Gas Range

Qty

Unit Budget

Total Budget

1 set 33 4 3 10 29 36 29 53 52 1 set 4 1 set

Php 18,000,000 1,500,000 1,200,000 2,500,000 1,500,000 75,000 30,000 10,000 5,000 15,000 50,000 35,000 212,000

Php 18,000,000 49,500,000 4,800,000 7,500,000 15,000,000 2,175,000 1,080,000 290,000 265,000 780,000 50,000 140,000 212,000

35,000 50,000 150,000 15,000

140,000 50,000 150,000 15,000

15,000 5,000 25,000 20,000

15,000 5,000 100,000 20,000

4 1 1 set 1 set 1 set 1 1 2 1 set

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Tables Chairs Cabinet Working Table Building and Warehouse Total

15 60 2 3 1 set

2,000 350 3,500 3,000

30,000 21,000 7,000 9,000 72,600,000 172,939,000

Purchasing Policy Purpose Explains the various functions performed by Purchasing and general policies concerning the purchase of all materials, supplies, equipment, and services. Scope Applies to all departments and activities. Policy 1. Function of Purchasing Department. The mission of Purchasing is to provide direct support to the mission of the PDSEPI by assisting departments in obtaining products and services of a high quality, at the lowest cost, and in the time needed. Purchasing achieves this mission by processing and expediting orders in an efficient manner and the highest ethical standards. To fulfill this mission, the functions of Purchasing Services are as follows: • • • • •

To organize and administer a purchasing program for all departments and activities. To communicate and interpret guidelines governing purchasing practice. To train employees in the preparation of electronic requisitions and to administer this process. To provide the needed expertise on obtaining goods and services of the best quality at the lowest prices. To dispose of all obsolete, used or surplus materials, supplies and equipment. 2. Compliance with Purchasing Guidelines. All purchase transactions shall be made in strict compliance with the provisions as listed in this policy. Any employee circumventing established purchasing guidelines is subject to disciplinary action and may be held personally liable for the amount of the transaction. When a department is non-compliant with the purchasing procedure, a memorandum addressing the non-compliance will be sent to the responsible department head and to the next higher authority.

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3. Purchasing Authority. Authorization for purchases rests exclusively in Purchasing. Departments may not purchase or contract without requisitioning the purchase of goods or services through Purchasing.

4. Authority to Question Quantity or Quality. Purchasing has the responsibility and full authority to question the quantity, quality, and kind of material requested by departments so that the best interests of the company may be served. 5. Contracts/Competitive Bidding. • •

Many items are under contract and must be obtained from specified vendors. Other items, due to cost, must be obtained under a competitive bid process by Purchasing. 6. Service Contracts/Maintenance Agreements. A service or maintenance contract is initiated by submitting a requisition to the Purchasing Department. The Purchasing Manager must sign all maintenance contracts. The Purchasing Department obtains Service contracts for most office and support equipments. Once equipment is covered on a maintenance contract, service requests should be referred to the vendor for prompt response. 7. Sole Source Purchases. On some highly technical items, there shall be only one known source. A sole source justification for a purchase of this type of item without competitive bidding shall accompany the procurement request. The sole source justification form shall be forwarded to the VP Logistics for approval and should give the following information:

1. Name and address of the suggested supplier. 2. Technical specifications that make the equipment unique. 3. Names and addresses of other vendors that make similar equipment, and details of the ways such equipment fails to meet required specifications. 8. Contract with Consultants. The definition of consultants means work or task(s) performed by independent contractors possessing specialized knowledge, experience, expertise and professional qualifications to investigate assigned problems or projects and to provide counsel review, analysis or advice in formulating or implementing improvements in programs or services. This includes but is not limited to the organization, planning, directing, control, evaluation and operation of a program, agency; or department.

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Before receiving authorization to seek consultant services, Departments Head shall submit to and contract written justification for its request for consultant services. This written justification shall at a minimum explain: • • • • • •

What services the Department desires to secure Why the work to be performed by the consultant cannot be reasonably accomplished by employees of the requesting Department How the work to be performed relates to the proper functions of the Department What benefits the Department expects to receive from the consultant’s services What the Department estimates to be the cost of the services sought and what budget will be used for this service What potential sources of consultant services, if any, the Department has identified 9. Contractual Arrangements. All contractual arrangements for goods and services must be reviewed and approved by the VP Logistics 10. Conflict of Interest.

• • •

Departments shall not make purchases from individuals employed by the company. In addition, employees shall not use the purchasing power of the company for personal advantage. Any transaction that may appear to be for individual personal gain, (as determined by Purchasing) must have approval from the president before the transaction shall be completed. 11. Receipt of Gifts and Favors from Contractors or Suppliers. It is unlawful for any contractor, subcontractor, or supplier: to make gifts or favors to PDSEPI employees charged with the duty of:

• • • •

Preparing plans, specifications, or estimates for project contracts, or Awarding or administering contracts, or Inspecting or supervising construction. Any activity of the same nature defined above Likewise, it is unlawful for employees to willfully receive or accept gifts or favors from such contractors, subcontractors, or suppliers. Exclusion: This policy on gifts and favors is not intended to prohibit:

• •

Advertising items or souvenirs of nominal value Meals furnished at banquets

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• •

•

Donations to professional organizations to defray meeting expenses Participation by PDSEPI employees and officers who are members of professional organizations in any scheduled meeting functions available to all members of the professional organization attending the meeting Customary gifts and favors between PDSEPI employees or officers and their friends and relatives (or friends and relatives of their spouse, minor children, or household members) when the personal relationship rather than business is clearly the motivating factor for the gift or favor. However, an employee who knowingly receives such gifts or favors must report it to his or her Purchasing Manager if a contractor, subcontractor, or supplier-doing business directly or indirectly with the company made the gifts. 12. Company Visits by Salespersons.

•

•

Salespersons may visit departments only upon prior approval by Purchasing of the vendor's visit. Salespersons visiting departments without purchasing approval shall be directed to Purchasing Department. Approved visits shall be scheduled by Purchasing, with ample notification to the department.. 13. Equipment Demonstration and Loans. Departments must obtain prior approval from Purchasing Department for equipment demonstrations or equipment loans. Departments may not accept goods on consignment, pending the issuance of a confirming purchase order. 14. Correspondence with Vendors. Once a purchase order has been transmitted to a vendor, all correspondence concerning the purchase is to be handled by Purchasing Department. When the technical details involved make it advisable to delegate authority to others, the Purchasing Department must receive copies of all correspondence. 15. Complaints of Vendor Performance. Departments shall direct all complaints of vendor performance or service to the Purchasing Manager via a memorandum. The memorandum should include the following:

• • •

Purchase order number Full name of the vendor Date of the purchase order

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Human Resource Management

Human Resource Policy Workplace Environment While maintaining a work culture that ensures PDSEPI success, the company shall also strives to treat each employee fairly and with dignity. Consistent with this principle, PDSEPI seeks to:

•Reward individual performance through meritocracy-based compensation practices •Create opportunities for advancement and growth, and an environment that allows employees to continuously improve and expand their skills •Provide market competitive compensation and a pay structure that allows employees to share in company’s success •Promote open communication and prompt resolution of employee issues •Provide a safe and secure work environment for all employees. In addition, PDSEPI is committed to complying with all applicable laws. pertaining to employees. This includes laws regarding: minimum ages for employment; minimum wages and overtime compensation; benefits; discrimination and affirmative action; employees’ right to raise issues and work collectively for their mutual benefit; and health and safety. Diversity & Equal Opportunities Diversity At PDSEPI, regional diversity is an essential ingredient of innovation and excellent business performance. The wide-ranging perspectives, abilities, and experiences of workforce are important to the success of the company. The company respects, value, and celebrate the unique points of view and opportunities that come with diversity in employees, communities, beneficiaries, and suppliers. Equal Opportunities PDSEPI provides equal opportunities for all applicants and employees without regard to non job-related factors such as religion, gender, national origin, ancestry, age, disability, veteran status, marital status, sexual orientation or gender

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identity. This principle applies to all areas of employment, including recruitment and hiring, training, performance evaluations, promotions and transfers, compensation and benefits, and recreational programs. Consistent with this, PDSEPI is committed to maintaining a workplace free from harassment of any kind, including harassment based on an employee’s, religion, gender, national origin, ancestry, age, disability, veteran status, marital status, sexual orientation or gender identity. PDSEPI will take immediate action to address harassment of employees engaged in by managers, co-workers, or nonemployees when the harassment occurs in the workplace or in the course of an employee’s work. Harassment includes any behavior that creates an intimidating, offensive or hostile work environment for an employee. Sexual harassment includes behaviors such as: making unwelcome sexual or romantic advances, requests for sex, touching another employee in an unwelcome sexual manner, displaying graphic sexual photos or written material, and sharing sexual jokes. Examples of other harassing behaviors include: making disparaging an employee because of her sex, condemning an employee’s religious beliefs, or ridiculing an employee because of his or her disabilities. Human Rights PDSEPI is committed to complying with all applicable laws regarding employees’ welfare. This includes laws regarding: minimum ages for employment; minimum wages and overtime compensation; benefits; discrimination ; employees’ right to raise issues and work collectively for their mutual benefit; and health and safety.. All employees are required to participate in training regarding human rights and the company’s business principles. Meritocracy& Continuous Improvement Meritocracy is an integral part of PDSEPI compensation philosophy that rewards performance and emphasizes continuous improvement. PDSEPI meritocracy system ties individual pay changes, promotion opportunities, and stock options to individual performance. PDSEPI formally appraises the performance of employees every year. The evaluation provides the employee with a documented review of performance and may result in a change in compensation. Employee performance is measured against factors such as individual performance expectations, departmental and/or corporate business objectives, team performance, performance relative to peers, and performance to PDSEPI values. Input on performance may be gathered from many sources, including managers, peers, subordinates and customers. Remaining competitive requires that PDSEPI employees strive for continuous

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improvement in their individual performance. PDSEPI encourages employees to own their own employability by maintaining and developing useful and marketable skills. In addition, managers are encouraged to assist employees in career development. Competitive and Variable Compensation PDSEPI total compensation approach responds to the cyclical nature of the business. This philosophy is based on creating a pay structure that the company can maintain in down cycles while being among the best paying in good times. This is accomplished through a combination of base pay, benefits and variable, profit-driven components such as cash bonus and preferably stock options. Employee Career Development and Management When company succeeds, the employees share in that success. At the same time, the company recognizes that employee development lays the foundation for the success in the first place. For this reason, PDSEPI provide a broad range of benefits to meet a spectrum of needs. Manager-Subordinate Relationships Romantic and sexual relationships between managers and subordinates can damage workgroup morale, create perceptions of favoritism, and lead to claims for sexual harassment, retaliation and wrongful termination. Consequently, every manager is prohibited from pursuing romantic or sexual relationships with employees in his or her direct, indirect or matrix management chain. A manager who nevertheless becomes involved in such a relationship has an obligation to disclose the relationship to his or her manager and Human Resources. If the relationship is disclosed immediately and before it has negatively impacted the work group, PDSEPI generally will work with the manager to attempt to modify the reporting relationship. Failing to raise the issue, or continuing to maintain the relationship, will result in disciplinary action, including termination. Open Communication PDSEPI promotes a free flow of thoughts, ideas, and questions throughout the company. Employees are encouraged to challenge the status quo and decision makers are encouraged to listen to all ideas and viewpoints. Employees are empowered to raise questions and discuss issues directly with their manager and work team. PDSEPI also encourages prompt resolution of individual employee concerns through its Open Door process. The Open Door is company’s process for addressing issues raised by employees. Through the Open Door, employees may raise any work-related concern at any time and expect the concern to be addressed in a prompt, confidential, and honest manner. The types of concerns commonly raised through the Open Door include: •Questions about the application of a PDSEPI guideline, Corporate Business Principle, or company Value.

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•Concerns about discipline received by the employee, or inappropriate behavior engaged in by a peer, manager or customer. An employee may raise a concern with whomever he or she thinks can best address it. PDSEPI encourages, but does not require, employees to raise concerns with their direct manager first. An employee may raise a concern with any manager (such as a department head), a member of the Human Resources group, or the Executive Office. Assets Protection and Use of Company Resources Every PDSEPI employee is responsible for protecting company’s assets. PDSEPI assets include, but aren’t limited to, physical assets, such as equipment and buildings, as well as company’s funds, and intellectual property such as company’s secrets and confidential information. To protect the company’s assets, they must be adequately safeguarded. This means locking up and securing valuable assets where appropriate. PDSEPI assets may not be sold, borrowed, lent, disclosed, given away or modified in any way that would impair their value, unless there is a good business reason and with approval of the department manager. Anyone entering an company’s facility is required to wear and openly display an PDSEPI-issued identification badge, and follow all entry procedures. All badges are the property of PDSEPI and must be returned on termination and upon request. Each employee is also responsible for understanding company's obligations for protecting assets that have been entrusted to it by suppliers, and for treating them accordingly. Company resources, including, but not limited to, cash, personnel, equipment and vehicles can only be used for legitimate company business purposes. PDSEPI also provides employees with use of company-owned telephones, copiers and computer equipment to be used as a resource in conducting business. Although reasonable personal use of these resources is permitted, such use is not private, is subject to review and access by PDSEPI, and is governed by the professional conduct and reasonable use expectations. Department Functions Office of the President Responsible for the policies, administration, control, and operations of the functions, programs, and affairs of the company. Assures that all the policies, programs and activities of the company are effectively executed and implemented in the most economical manner without any hindrance and prejudice to the beneficiaries.

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Designates and assigns the most qualified personnel to be deployed as executives of the company. Allocates and approves funds in the effective supervision and deployment of social and economic projects and services. Office of VP HRD Provides stable employment, equitable compensation, desirable working conditions and opportunities for advancement for employees in return for their skill, care, effort, dependability, and teamwork. Provides a climate conducive to the development of each employee in accordance with his needs, interests, desires, abilities, and willingness to take on additionally responsibility. Manages the human resource department to ensure continuing vitality thru personnel welfare and benefits. Provides continuing education training to executives, managers, engineers, supervisors, and all technical personnel to continuously update their knowledge, attitudes and skills in the practice of their of specialization. Defines clearly for each individual the responsibilities of his position to enable him to make his best contribution to overall organizational goals. Office of VP Finance and Accounting Responsible for the preparation and implementation of the effective financial plan to support the company’s programs, activities, projects and ensures the efficient and economical management with relevant information and advice on the evaluation and analysis of the operating performance of various department of the company. Assures the management of the internal financial and administrative affairs of the department. Coordinates and disposes all forms of financial needs to the department whether in cash or in kind. Examines and evaluates the adequacy and effectiveness of internal control within the department. Provides centralized accounting services for the center including control and certification of funds and review and scheduling of disbursements, including issuance, receipts, of checks and bonds.

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Office of VP Operations Generally responsible in the planning, design, directing, coordinating and controlling the operations of the area under his responsibility. The duties include formulating policies and guidelines in managing daily operations and implementation in the use of resources that are vital and important in his area. Assures that approved budget is effectively allocated and all other resources are used properly and the programs are carried as planned. Implements and use all tools available to assure effectiveness in the disseminations of all projects thus enhancing people’s awareness. Undertakes advocacy undertakings to promote social change and nurture its relationship with different stakeholders. Plans, directs, supervises and coordinates activities and personnel concerned in the construction of housing, economic, education, and health facilities. Office of VP Logistics In –charge of the procurement of goods and services for the company. This includes safekeeping and custody of all procurement documents. Integrates distribution, transportation and warehousing all materials, equipments, machines and tools in the facilitation of projects, construction and programs implementation. Coordinates with project managers in the proper allocation and use of all department materials, supplies, tools, machines, and equipments. Initiates effective automation of resources planning using the latest software available in the market. Office of VP Research, Planning and Development Leads in the formulation and development of policies, plans, programs, and projects in the field of socioeconomic projects. Implements and facilitates the assessments, generation, processing and packaging of data and reports and the presentation/dissemination of these to end users. Develops and maintains standards and procedures on information technology.

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Develops and implements training criteria, standards, and capability building programs for department personnel. Conducts research, studies, and special projects in the field of social and economic programs. Promotes and maintain linkages with international agencies for technical cooperation in coordination with other departments. Formulates operational programs and special projects in the field of socio-economy including conceptualization, development, management and operations of key or flagship projects. Responsible for the development of quality assurance measures and regulates the implementation of socioeconomic policies, rules and regulations. Manpower Summary Position President Vice President Asst Vice President Corporate Attorney Manager Supervisor Engineer Executive Secretary Technical Assistant Department Secretary Clerk I Clerk II Driver/Messenger Helper Janitor Total

Requirements 1 5 2 1 23 6 13 1 37 23 14 27 17 60 5 235

Risk/Opportunity The risks that PDSEPI is seeing in the implementation of this project is the continuous increase in the price of petroleum products that will affect the operating cost in the management of the various social and economic projects. PDSEPI needs to continuously formulate effective strategies and action plans to face these challenge. Another risk is the continuous transfers of squatters from

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Metro Manila to Cavite.To compensate this, an average population rate of 5.45% was considered in the computation. Fortunately, the continuous improvement of peso over the dollar will reduce the cost of importing equipment, machineries, materials and technologies needed in the effective operations of PDSEPI. The project is also seen to minimize if not eliminate social problems in Cavite in the future.

Capital Requirements PDSEPI is seeking 91.86 billion pesos worth of financing which will enable the company to provide and deliver the vital services and the economic- based projects that the company believes will enhanced the quality of lives of the beneficiaries. Note that some of the generated income will be subjected to money income investments so as to continue maximizing the return and thus continue the financing of socio-economic projects as well as for the new projects that will be developed. The income from this investment program will be used also to promote sustainability of PDSEPI. The initial stage of funding will be used to complete land, building and facilities construction, purchase fixed capital equipment, enhance service social marketing, and fund the needed pre-operating and working capital. Here is a breakdown of how the funds will be spent; Complete facilities development Purchase operating capital equipment and supplies Fund pre-operating and working capital

Php 215.30 M Php 9,877.10 M Php 12.6 M

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Financial Evaluation A. Assumptions The following cost analysis and projections assume the following; a. U.S. Dollar to Peso Exchange Rate: $ 1= Php 40.25 b. Target Families:41,696 c. Number of Cavite Barangays:829 d. Number of Cities:3 e. Number of Municipalities:20 f. Number of Districts:3 g. Inflation Rate: 2.0 % h. Average Annual Population Increase: 5.45% B. Social and Economic Projects Budget Plan Social Welfare Projects 1. Health Care Services in the Province One Health Center Bldg/Fac. per Barangay Health Subsidy per family Barangay Botica 2. Housing Project (41,696 units) Site and Land Preparation House Construction Support Facilities 3. Educational Services in the Province One HS Bldg/Facilities per Barangay Educational Subsidy (8320)students for college Education and Cultural Programs -Teachers Effectiveness Training -Teachers Scholarships Grants One ES Bldg/Facilities per Barangay 4. Construction of Barangay Facilities

Unit Budget (Php)

Total Budget (Php)

7,500,000

6,217,500,000

50,000 1,750,000 650,000

2,084,800,000 1,450,750,000 27,102,400,000

27,500,000

22,797,500,000

360,000

2,995,200,000

1,500,000

1,243,500,000

18,000,000

14,922,000,000

42

A. Barangay Halls Improvement Barangay Tanod Allowance Patrol Cars B. Construction of Potable Water Systems per Barangay Barangay Aqua Puro C. Construction of Recreational Facilities per Barangay Barangay Parks Youth and Senior Sports Facilities 5. Special Projects for Disabled and Needy Persons per municipality and city A. Disabled Persons Free Equipments for persons with handicap per municipality/city School Facilities for Disabled Persons per District Medical Assistance for Special Treatment per Municipality/City B. Assistance to Senior Citizens per Barangay Food, Clothing and Personal Allowance Death Assistance 6. Spiritual Development per Barangay Chapel Construction/Improvement Spiritual Materials Spiritual Training and Education 7. Environmental Projects in the Province Reforestation/Tree Planting Seedlings Bank Total B. Economic Projects 1. Creation and Organization of Cooperatives per Barangay Credit Cooperative

750,000 100,000 350,000

621,750,000 82,900,000 290,000,000

650,000

538,850,000

1,500,000 350,000

1,243,500,000 290,000,000

450,000

10,350,000

2,500,000

7,500,000

350,000

8,050,000

200,000

165,800,000

350,000

290,150,000

1,800,000 350,000

592,200,000 115,150,000 68,147,850,000

1,500,000

1,243,500,000

43

Consumer Cooperative Technical Support Facilities 2. Construction of Farm Irrigation Systems (329 Agricultural Barangay) 3. Livelihood Projects per Barangay Vegetable Farming(329 Barangay) Piggery/Poultry Raising Goat Raising Fish Farming (213 Barangay) Food Processing Technical Education and Support 4. Farm to Market Roads for low income 13Municipalities(Appendix 3) 5. Agro-Industrial Projects for 13 municipality Post Harvest Facilities Feed Mills Technical Support 6. Tourism Projects per District Eco- Tourism Resorts and Restaurant Total Socio-Economic Total Contingency (10%)

1,500,000 350,000 6,000,000

1,243,500,000 290,150,000 1,974,000,000

500,000

164,500,000

750,000 450,000 750,000 750,000 750,000 50,000,000

246,750,000 148,050,000 159,750,000 246,750,000 246,750,000 650,000,000

3,500,000 2,500,000 350,000

45,500,000 32,500,000 4,550,000

7,500,000 15,000,000

22,500,000 45,000,000 6,178,750,000 74,326,600,000 7,432,266,000 81,759,260,000

Sub Total

C. Socio- Economic Projects Annual Revenue Socio-Economic Projects

Budget Php

Housing Revenue 41,696 units (36 sq. meter area) 650,000 pesos/unit 25 years to pay(2166 pesos/mo) Barangay Aqua Puro 829 Barangays

27,102,400,000

538,850,000

Annual Revenue at 10% ROI Php 108,409,600

53,885,000

44

650,000 Pesos each System Credit Cooperative 829 Barangays Consumer Cooperative 829 Barangays Farm Irrigation 329 Barangays Fish Farming Vegetable Farming 329 Barangays Piggery/Poultry Raising 329 Barangays Cattle/Goat Raising 329 Barangays Food Processing 829 Barangays Post Harvest Facilities Rental 329 Barangays Feed Mills 329 Barangays Resort/Restaurant per District Eco -Tourism On Applicable Municipalities Barangay Botica Total Php

1,243,500,000

124,350,000

1,243,500,000

124,350,000

1,956,000,000

195,600,000

159,750,000 164,500,000

15,975,000 16,450,000

246,750,000

24,675,000

148,050,000

14,805,000

246,750,000

24,675,000

45,500,000

4,550,000

32,500,000

3,250,000

45,000,000

13,500,000

22,500,000

2,250,000

1,450,750,000 34,646,300,000

145,075,000 871,799,600

D. PDSEPI Fixed Capital Operating Budget Items

Office of the President Service SUV Vehicle Lap Top Computer Executive Table/Chair Desktop Computer Steel Filing Cabinet Office Table /Chair Executive Furniture

Qty

Unit Budget

Total Budget

pc

Php

Php

1 2 2 2 2 2 2

1,700,000 75,000 15,000 30,000 10,000 5,000 10,000

1,700,000 150,000 30,000 60,000 20,000 10,000 20,000

45

Cellular Phone White Board 4 by 6 ft. Printer Interior Decoratives Office Supplies (set) Conference Room Furniture and Equipment Office of VP HRD Service SUV Vehicle Lap top Computer Executive Table/Chair Desktop Computer Steel Filing Cabinet Office Table/Chair Cellular Phone Printer LCD Projector w/ Screen Television for Training DVD Player for Training Office Table/Chair Canteen Equipments Tables Chairs Freezer Cooking Equipments(set) Cashier Equipment Gas Tanks for Cooking Photo Copier Training Furniture Table/Chair White Board 4 by 8 ft. Documents Cabinet Office Forms and Supplies(set) Contingencies Office of VP Finance and Accounting Service SUV Vehicle Lap Top Computer Executive Table /Chair Steel Filing Cabinet Office Table/Chair Printer Desktop Computer White Board 4 by 8 ft

2 1 1 1 1 1

25,000 3,000 35,000 15,000 10,000 75,000

50,000 3,000 35,000 15,000 10,000 75,000

5 4 4 5 4 5 4 1 3 2 4 1

1,500,000 75,000 15,000 30,000 10,000 5,000 25,000 35,000 50,000 25,000 3,000 5,000

7,500,000 300,000 60,000 150,000 40,000 25,000 100,000 35,000 150,000 50,000 12,000 5,000

15 60 2 1 1 1 1

1,500 350 25,000 20,000 15,000 5,000 30,000

22,500 21,000 50,000 20,000 15,000 5,000 30,000

10 4 2 1

5,000 3,000 15,000 10,000

50,000 12,000 30,000 10,000

10%

4 3 3 3 6 1 6 2

869,250

1,500,000 75,000 15,000 10,000 5,000 35,000 30,000 3,000

6,000,000 225,000 45,000 30,000 30,000 35,000 180,000 6,000

46

Office Forms and Supplies Photo Copier Contingencies Office of VP Operations Service Vehicle Lap Top Computer Executive Table /Chair Steel Filing Cabinet Office Table/Chair Printer Desktop Computer Auto CADD Plotter 1 White Board 4 by 8 ft. Office Forms and Supplies Radio Equipments(set) Satellite Furniture/Equipments Pick-Up Trucks Service Van Contingencies Office of VP Logistics Service SUV Vehicle Lap Top Computer Executive Table/Chair Steel Filing Cabinet Office Table/Chair Desktop Computer Office Forms and Supplies Elf Truck Pick-Up Truck Initial Project Supplies Contingencies Office of VP Research, Planning and Development Service SUV Vehicle Laptop Computer Executive Table Chair Steel Filing Cabinet Office Table Chair Desktop Computer Printer ERP Software Business Software White Board 4 by 8 ft Office Forms and

1 1 10%

10,000 30,000

10,000 30,000 659,100

1,500,000 75,000 15,000 10,000 5,000 35,000 30,000

25,500,000 1,050,000 240,000 140,000 140,000 35,000 420,000

50,000 3,000 10,000 150,000 50,000 1,500,000 1,200,000

50,000 42,000 10,000 150,000 1,150,000 10,500,000 4,800,000 4,422,700

3 3 3 3 6 6 1 3 2 1 10%

1,500,000 75,000 15,000 10,000 5,000 30,000 10,000 2,500,000 1,500,000 5,000,000

4,500,000 225,000 75,000 30,000 30,000 180,000 10,000 7,500,000 3,000,000 5,000,000 2,055,000

3 3 3 3 6 3 1 1 2 2 1

1,500,000 75,000 15,000 10,000 5,000 30,000 35,000 750,000 250,000 3,000 10,000

4,500,000 225,000 75,000 30,000 30,000 90,000 35,000 750,000 500,000 6,000 10,000

17 14 16 14 28 1 14

14 1 1 23 7 4 10%

47

Supplies(set) Pick-Up Truck Contingencies Total

1 10%

1,500,000

1,500,000 775,100 9,877,065,000

E. PDSEPI Building/Facilities Budget

Items

Qty (pc)

a. Land /Devt (15,000 sq. meter) b. Building (2,500 sq. meter) c. Building Facilities (40% of Bldg)(Water/Electrical/AC/Com d. Parking/Maintenance Bay( 1500 sq. meter) e. Sports Facilities(1000 sq. meter) f. Canteen Facilities(300 sq. meter) g. Warehouse(2000 sq. meter) Contingency (20%) Total

1 1 1

Unit Budget (Php) 4,000 18,000

Total Budget (Php) 60,000,000 45,000,000 18,000,000

1

5,000

7,500,000

1

5,000

5,000,000

1

12,000

3,600,000

1

12,000

24,000,000 35,882,000 215,292,000

F. PDSEPI Pre-Operating Budget Items Pre-Investment Studies/Investigations Pre-Project Capital Eqpmt- A/C, Water, Communication, Office Furnitures/Eqpmt Recruitment and Training Legal Permits Initial Working Capital Cash on Hand Salaries and Wages Office Rental Gasoline, Electricity and water Office Supplies Kick- off Budget Contingency (20%) Total

Budget Php 350,000 1,500,000 2,500,000 500,000 5,350,000 1,000,000 3,000,000 600,000 350,000 50,000 350,000 2,040,000 12,640,000

48

G. PDSEPI Manpower Budget Position Classification

Qty

Monthly Salary (Php)

Annual Budget (Php)

1 1 1 2 2

500,000 55,000 200,000 35,000 30,000

6,000,000 660,000 2,400,000 840,000 720,000 10,620,000

1 1 1 1 1 2 1

350,000 45,000 200,000 40,000 75,000 30,000 75,000

4,200,000 540,000 2,400,000 480,000 900,000 720,000 900,000

2 1

30,000 200,000

720,000 2,400,000

1 1

40,000 75,000

480,000 900,000

2 1

30,000 75,000

720,000 900,000

2 1 1 1

30,000 200,000 40,000 75,000

720,000 2,400,000 480,000 900,000

3 10/5 1

50,000 20,000 75,000

1,800,000 3,600,000 900,000

5 3

50,000 25,000

3,000,000 900,000 30,960,000

Office of the President 1. President 2. Executive Secretary 3. Corporate Attorney 4. Clerk I 5. Driver/Security Total Office of VP HRD 1. VP HRD 2. Secretary to the VP 3. Employment Manager 4. Secretary to the EM 5. Recruitment Supervisor 6. Clerk II 7. Compensation/Benefits Supervisor 8. Clerk II 9. Personnel Relations Manager 10. Secretary to the PRM 11. Employee Relations / Security Supervisor 12. Clerk II 13. Training/Development Supervisor 14. Clerk II 15. Facilities Manager 16. Secretary to the FM 17. Building Maintenance Supervisor 18. Technical Asst I 19. Helper/Janitor 20. Equipment Maintenance Supervisor 21. Technical Asst. I 22. Driver/Messenger Total

49

Office of VP Finance and Accounting 1.VP Finance and Accounting 2. Secretary to the VP 3. Finance Manager 4. Secretary to the FM 5. Clerk I 6. Clerk II 7. Accounting Manager 8. Secretary to the AM 9. Clerk I 10. Driver/Messenger Total Office of VP Operations 1. VP Operations 2. Secretary to the VP 3. AVP Operations 4. Secretary to the AVP 5. Project Manager 6. Secretary to the PM 7. Engineering Manager 8. Secretary to the EM 9. Technical Engineer 10. Technical Asst I 11. Clerk II 12. Driver 13. Helper Total Office of VP Logistics 1. VP Logistics 2. Secretary to the VP 3. Purchasing Manager 4. Secretary to the PM 5. Warehouse Manager 6. Secretary to the WM 7. Warehouse Supervisor 8. Clerk I

1

350,000

4,200,000

1 1 1 1 2 1 1 5 1

45,000 200,000 40,000 35,000 30,000 200,000 40,000 35,000 25,000

540,000 2,400,000 480,000 420,000 720,000 2,400,000 480,000 2,100,000 300,000 14,040,000

1

350,000

4,200,000

2 2

275,000 40,000

6,600,000 960,000

13 13

200,000 40,000

31,200,000 6,240,000

1 1

200,000 40,000

2,400,000 480,000

13 26 15 7 50

75,000 50,000 30,000 25,000 20,000

11,700,000 15,600,000 5,400,000 2,100,000 12,000,000 98,880,000

1 1 1 1 1 1

350,000 40,000 200,000 40,000 200,000 40,000

4,200,000 480,000 2,400,000 480,000 2,400,000 480,000

2 6

75,000 35,000

1,800,000 2,520,000

50

9. 10.

Driver Helper Total

Office of VP Research, Planning and Development 1. VP Research, Planning and Development 2. Secretary to the VP 3. Research and Planning Manager 4. Project Development Manager 5. IT Engineer 6. Technical Asst I 7. Clerk I 8. Clerk II 9.Driver Total Sub Total

3 10

25,000 20,000

900,000 2,400,000 18,060,000

1

350,000

4,200,000

1 1

40,000 200,000

480,000 2,400,000

1

200,000

2,400,000

2 3 2 2 1

75,000 50,000 35,000 30,000 25,000

1,800,000 1,800,000 840,000 720,000 300,000 14,940,000 187,500,000

G. Projected Variable Operating Expenses For the Years 2009 through 2012 Operating Expense

2009

2010

2011

2012

Salaries and Wages 13th month pay Employees Welfare and Benefits SSS, Medicare and Insurance Premiums Medicare and Hospitalization Food and Supplies Subsidy Representation and Entertainment Transportation and Travel Consultant/Prof. Fees Recreation and Excursion Supplies and Stationeries Study, Research and

131,250,000 10,937,500 22,610,400

187,500,000 15,625,000 24,871,440

206,250,000 17,187,500 27,358,584

226,875,000 18,906,250 30,094,442

4,987,500

4,987,500

5,486,250

5,486,250

11,950,000

11,950,000

13,145,000

13,145,000

119,500

119,500

131,450

131,450

3,408,000

3,408,000

3,748,800

3,748,800

19,034,000

19,034,000

20,937,400

20,937,400

5,000,000 2,000,000

5,000,000 2,000,000

5,000,000 2,000,000

5,000,000 2,000,000

3,600,000

3,780,000

3,969,000

4,167,450

5,000,000

6,050,000

6,655,000

7,320,500

51

Devt Repairs and Maintenance Gas, oil and Lubricant BOD Fees Membership Dues Housing Benefits Utilities, power, communication, and water Social Advertising Depreciation Permits and Licenses Seminars and Conferences Security Services Taxation Miscellaneous Expenses Total

3,500,000

3,850,000

4,235,000

4,658,500

2,500,000 525,000 100,000 1,892,000 18,000,000

3,000,000 575,500 100,000 2,270,400 21,600,000

3,600,000 635,250 100,000 2,724,480 25,920,000

4,320,000 698,775 100,000 3,269,376 31,104,000

1,500,000 24,286,824 1,500,000 2,000,000

1,500,000 24,286,824 1,000,000 2,000,000

1,500,000 24,286,824 750,000 2,500,000

1,500,000 24,286,824 500,000 2,500,000

750,000 10,500,000 1,500.000

825,000 10,500,000 1,500,000

907,500 10,500,000 1,500,000

1,000,000 10,500,000 1,500,000

357,332,764

391,027,238

423,750,017

288,450,724

Project Timetable Activity

Target Completion

PDSEPI Project Study Approval

June 2008

Budget Release

June 2008

Building/Facilities Construction

November 2008

Executives Recruitment

July 2008

Manpower Recruitment/Training

October 2008

Kick-Off

December 2008

Start -Up Operation

January 2009

Conclusion Both the PDSEPI operation and the 13 socio-economic projects will need a total of 91.86 billion pesos investment. It will also require 6 months to construct and faciliticized its building and support facilities. Major start-up operation will start on the first week of January 2009.

52

Appendix 1. Analysis of Social Developments Poverty The Philippines has achieved a modest reduction in poverty incidence from 27.5% in 2000 to 24.7% in 2004, when approximately 30 million people were living below the poverty line. Poverty is multifaceted in the Philippines and includes deprivation of access to five essential assets: financial, human, natural, physical and social. There continue to be wide geographic disparities in poverty distribution across and within the different regions in the country and between rural and urban areas, with the highest incidences of poverty found in Mindanao and in the Cordilleras. There are also persisting income inequalities between rich and poor, which confirm that overall economic growth has not been broad-based and pro-poor.. Indigenous communities are among the poorest in the country and depend on resources for their basic livelihoods. In Mindanao, violent conflict is linked in part to grievances over access to and control over natural resources. Some investments (both public and private) in resource-intensive mining, fishing, energy and forest industries have degraded and diminished available resources, displaced segments of the population and disrupted the social fabric of indigenous communities. This has exacerbated tensions, notably between competing clans, and has given a specific environment-conflict dimension to poverty. .

Health Health conditions have improved somewhat since the 1990s, as shown by the data on infant and child mortality rates, maternal mortality rates, life expectancy, malnutrition prevalence, and the prevalence of selected diseases such as malaria, tuberculosis and HIV/AIDS. The children under-five and infant mortality rates dropped from 80 (out of 1000) in 1990 to 40 in 2003 and from 57 in 1990 to 29 in 2003. Similarly, maternal mortality rate (MMR) also declined from 280 per 100,000 live births in 1990 to 172 per 100,000 live births in 2000, which is still higher than the rates of some of its neighbours in the region. Access to quality health services continues to be a major problem in many regions as health service delivery suffers from budgetary cuts. The latest National Demographic Survey, for instance, shows an increase in the number of unvaccinated children. The number of married women using modern contraceptive methods rose to a still low 33% compared to just 25% in 1993 (GoP surveys only cover married women of reproductive age) and close to 24% of family planning needs remain unmet due to the lack of an active population control policy.

53

The rising brain drain of health professionals – the Philippines is the first exporter of nurses and the second of doctors worldwide – negatively impacts upon the quality of health services. Health financing and social protection coverage is inequitable, with a heavy financial burden on households, especially the poor and ethnic minorities. The government addresses this key concern to some extent through the subsidized enrolment of indigents in its social health insurance program. Education In past decades the Philippines had enjoyed high adult literacy rates (94%) and high participation rate in elementary education (97%). However, the gains in the sector could not be sustained. Falling participation rates, deteriorating quality of education and students’ failure to reach final grades are some of the current problems of the Filipino education system which needs to cater to an everincreasing number of young people. Education outcomes in the Philippines are low compared to the rest of East Asia. Recent international studies ranked the Philippines nearly last in student performance on science and mathematics tests. The practice and quality of English has considerably fallen since its replacement by Filipino as official instruction language. In general, access to education is not a gender issue in the Philippines, girls even tend to have better access, lower drop out-rates and better grades. However, there continues to be the societal bias towards seeing men as the main bread winner. Indigenous groups and minorities do in principle have access to free education too, but in practice they sometimes remain outside the system as schools and teachers are often not available near their areas. The quality of primary and secondary education has deteriorated particularly in the public sector. Budget cuts have led to a lack of classrooms and books and other learning materials. The dearth of competent teachers due to the brain drain factor has worsened the situation. Urgent action from the government is required to redress the situation. Employment and decent work The employment situation in the Philippines remains characterized by insufficient capacity to absorb neither the increasing number of unemployed and underemployed nor the additional labor supply due to strong population growth. Women tend to face higher unemployment than men and remain more vulnerable to seasonal fluctuations in employment. Youth unemployment is mitigated to some extent by increasing outward migration. Furthermore, less than a third of workers are covered by the national social security system. There are also concerns regarding the effective compliance with labor law and the limited enforcement of labor standards. The Philippines have not ratified the so-called Forced Labor Convention.

54

Access to social services Access by the poor to basic services such as housing, safe water, sanitation toilets and electricity remains a major problem although the situation has improved somewhat since 1998. However, progress has not been sustained for all basic infrastructures. The results of the 2002 Annual Poverty Indicators Survey showed there were fewer families in the lower income brackets that were able to access safe drinking water (80%), and had their own houses and lots (66.5%), although there were increases in the provision of sanitary toilets (86.1%) and electricity (79%). According to government’s monitoring, there is a high probability of meeting 9 out of 15 indicators covering 8 MDG targets. Five indicators have a medium probability (all in the areas of health and education) and one indicator has a low probability (contraceptive prevalence). Analysis of the environmental situation The Philippines has rich and diverse natural resources and is one of the five only biodiversity hotspots. However, overall, the environmental outlook is bleak. Only 8% of the original primary forest remains and many species are under threat; 40% of the country’s solid waste remains uncollected; just over 36% of river systems are classified as possible sources of public water supply; over-fishing and destructive fishing practices are among the main threats to the marine environment; and 70% of the coral reefs are in bad condition. The depletion of natural resources is caused by a variety of mutually reinforcing negative factors: high population pressure with the majority of the poor deriving their income from natural ecosystems; rapid and uncontrolled urbanization. Source: The EC-Philippines Strategy Paper, 2007-2013

2.Cavite Province Profile, 2007 AS OF 31 DECEMBER 2007

INDICATORS

GEOGRAPHY (Source:TWG-PGC, NSCB) Land Area (in hectares) Percentage to the Region's Land Area

REFERENCE PERIOD

2005 2005

CALABARZON

1,622,861

CAVITE

128,755 7.9%

55

No. No. No. No.

of of of of

Cities Municipalities Barangays Districts

DEMOGRAPHY (Sources: NSO & NSCB) Total Population Percentage to the Region's Population Population Density (persons/sq. km.) Population Projection a/ Female Male Average Annual Population Growth Rate Human Development Index

AGRICULTURE (Source: BAS) Palay Production (in metric tons) Corn Production (in metric tons) Total Fish Production (in metric tons) p/ Commercial Fish Production (in metric tons) p/

Dec Dec Dec Dec

2007 2007 2007 2007

12 130 4,011 17

3 20 829 3

May 1, 2000 May 1, 2000 May 1, 2000

9,320,629

2,063,161 17.49% 1,602.3

2010 2010 1995-2000 2000

5,983,200 5,920,900

1,494,300 1,419,200 5.45% 0.735

2007 2007 4th Qtr 2007

391,418 66,249 103,451

38,685 2,729 2,043

4th Qtr 2007

14,423

871

Municipal Fish Production (in metric tons) p/

4th Qtr 2007

29,804

656

Aquaculture Fish Production (in metric tons) p/

4th Qtr 2007

59,225

516

Inventory of Carabao (in metric tons) p/

Jan 2008

167,423

4,500

Inventory of Cattle (in metric tons) p/

Jan 2008

250,500

31,009

Inventory of Goat (in metric tons) p/

Jan 2008

214,211

15,968

Inventory of Hog (in metric tons) p/

Jan 2008

1,794,480

161,386

Inventory of Duck (in metric tons) p/

Jan 2008

902,766

25,943

Inventory of Chicken (in metric tons) p/

Jan 2008

22,313,817

3,153,127

INCOME and PRICES (Sources: NSO & DTI) Average Income Per Capita (in pesos) Average Annual Family Income (at 1994 prices) Average Annual Family Expenditures (at 1994 prices) Consumer Price Index (2000=100) Inflation Rate (2000=100) Purchasing Power of the Peso Prices of Cement (in pesos) Portland Pozzolan Price of G.I. Sheet (Corrugated, gauge 26) (Corrugated gauge 31)

INVESTMENTS and EXPORTS (Source: DTI) Investments Generated (in million pesos) Exports (in million US dollars)

2000 2000

39,989 127,699

2000

104,248

Nov 2007 Nov 2007 Nov 2007

143.0 2.6 0.70

132.8 2.4 0.75

Sep 2007 Sep 2007

175.00 …

Sep 2007 Sep 2007

29.00 30.00

2nd Qtr 2001 2nd Qtr 2001

12,068.851 1,620.450

3,701.278 588.800

POVERTY STATISTICS r/ (Source: NSCB)

56

Annual Per Capita Poverty Threshold (in pesos) Poverty Incidence of Poor Families (in percent) Poverty Incidence of Poor Population (in percent) Annual Per Capita Food Threshold (in pesos) Subsistence Incidence of Poor Families (in percent) Subsistence Incidence of Poor Population (in percent)

2007

16,866

18,019

2003

14.5

8.6

2003

18.4

12.5

2007

10,595

11,467

2003

3.5

1.0 b/

2003

4.7

1.3 b/

4th Qtr 2007 2003 2003

105,378 2,689.096 14.981

27,728 372.930 2.267

COMMUNICATION (Source: NTC) No. of Telephone Lines Installed No. of Telephone Lines Subscribed

2006 2006

1,050,054 566,801

317,973 154,765

TOURISM (Source: DOT) Visitor Arrivals p/

2006

2,404,967

57,526

2006

19.72

20.30

2006

3.48

2006

7.50

3.44 6.40 44.73

2006

0.32

0.23

93.95 b/ 94.07 b/

96.8 95.1

TRANSPORTATION (Sources: LTO & DPWH) Motor Vehicles Registered National Road Length (in kilometers) National Bridge Length (in kilometers)

HEALTH (Source: DOH) Livebirths c/ (per 1,000 population) Death Rate c/ (per 1,000 population) Infant Mortality Rate c/ (per 1,000 livebirths) Maternal Mortality Rate c/ (per 100,000 livebirths)

LITERACY (Sources: FLEMMS, NSO-DECS) Simple Literacy Rate Household Population 10 Years Old & Over Male Female Functional Literacy Rate Household Population 10 to 64 years old Male Female

EDUCATION (Source: DepEd) No. of Enrollees Public Elementary Private Elementary No. of Enrollees Public Elementary

Nov 1994 Nov 1994

Nov 1994 Nov 1994

92.4 93.2

SY 2006-2007 SY 2006-2007

1,400,860 211,489

300,325 63,661

SY 2006-2007

611,959

142,059

57

Private Elementary No. of Public Elementary Schools e/ No. of Public Secondary Schools e/ Teacher-Pupil Ratio (Public Elementary) c/ Teacher-Student Ratio (Public Secondary) c/

PUBLIC ORDER and SAFETY (Sources: PNP & BFP) Total Crime Volume Crime Solution Efficiency Rate Fire Incidence (in no. of fires) p/ Fire Damages to Property (in thousand pesos) p/

SY SY SY SY SY

2006-2007 2006-2007 2006-2007 2005-2006 2005-2006

4th 4th 4th 4th

Qtr Qtr Qtr Qtr

2007 2007 2007 2007

214,795 2,643 474

51,246 362 61 1:47 1:47

1,392 90.01% 136 56,050.04

402 83.33% 59 16,882.04

Notes: Provincial figures include cities unless otherwise noted nil or zero ... no data available a/ - Based on the 2000 Census-Based National, Regional and PROVINCIAL Population Projections b/ - coefficient of variation greater than 20% c/ - provincial data excludes cities d/ - Reference period: Year 2000 e/ - includes school annexes p/ preliminary r/ revised Sources of Data: BAS - Bureau of Agricultural Statistics, Region IV-A BFP - Bureau of Fire Protection, Region IV-A DepEd - Department of Education, Region IV-A DOH - Department of Health, Region IV-A DOT - Department of Tourism, Region IV DPWH - Department of Public Works and Highways, Region IV-A DTI - Department of Trade and Industry, Region IV-A FLEMMS - Functional Literacy, Education and Mass Media Survey LTO - Land Transportation Office, Region IV-A NSCB - National Statistical Coordination Board NSO - National Statistics Office, Region IV-A NTC - National Telecommunications Commission, Region IV PRO - Police Regional Office, Region IV-A TWG-PGC - Technical Working Group on Philippine Geographic Classification, NSCB

58

3. LIST OF CITIES AND MUNICIPALITIES BY INCOME CLASS, URBANITY AND DISTRICT (as of September 2004) Municipality Alfonso Amadeo Bacoor Carmona Cavite City Dasmarinas Gen. Aguinaldo Gen. M. Alvarez Gen. Trias Imus Indang Kawit Magallanes Maragondon Mendez Naic Noveleta Rosario Silang Tagaytay City Tanza Ternate Trece Martires City

Income a Class 3rd Class 4th Class 1st Class 1st Class 3rd Class 1st Class 5th Class 2nd Class 1st Class 1st Class 3rd Class 1st Class 5th Class 4th Class 4th Class 2nd Class 4th Class 1st Class 1st Class 3rd Class 1st Class 4th Class 4th Class

Rural/Urban

b

Partially Urban Partially Urban Urban Urban Urban Urban Partially Urban Urban Partially Urban Partially Urban Partially Urban Urban Partially Urban Partially Urban Urban Partially Urban Urban Urban Partially Urban Partially Urban Partially Urban Partially Urban Partially Urban

c

District 3rd 3rd 1st 2nd 1st 2nd 3rd 2nd 2nd 2nd 3rd 1st 3rd 3rd 3rd 3rd 1st 1st 3rd 3rd 2nd 3rd 2nd

Note: Source: a - Bureau of Local Government Finance; b - NSO; and c - COMELEC

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4. Cavite Poverty Incidence Map

Note: Poverty incidence (PI) Definition

the proportion of families/individuals with per capita income/expenditure less than the per capita poverty threshold to the total number of

60

families/individuals

5. Annual Per Capita Poverty Thresholds for Region IV -A, 2005 - 2006 (Revised estimates as of 21 June 2007)

Region / Province

2005 Poverty Threshold (in PhP) All areas

Urban

2006 Poverty Threshold (in PhP)

Rural

All areas

Urban

Rural

PHILIPPINES 1/

14,046

16,032

13,296

14,906

17,035

14,123

Region IV-A

16,103

16,849

15,651

17,151

17,779

16,771

Batangas

17,168

17,872

16,867

18,404

18,881

18,201

Cavite

17,155

16,895

17,788

17,876

17,552

18,667

Laguna

15,639

16,149

14,801

16,531

17,069

15,649

Quezon

14,816

16,511

14,562

15,927

18,042

15,610

Rizal

16,114

16,151

15,789

16,971

17,016

16,576

Source :NCSB Note: Poverty threshold (PT)

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Definition

the minimum income/expenditure required for a family/individual to meet the basic food and non-food requirements Notes: Basic food requirements are currently based on 100% adequacy for the Recommended Energy and Nutrient Intake (RENI) for protein and energy equivalent to an average of 2000 kilocalories per capita, and 80% adequacy for other nutrients. On the other hand, basic non-food requirements, indirectly estimated by obtaining the ratio of food to total basic expenditures from a reference group of families, cover expenditure on: 1) clothing and footwear; 2) housing; 3) fuel, light, water; 4) maintenance and minor repairs; 5) rental of occupied dwelling units; 6) medical care; 7) education; 8) transportation and communication; 9) non-durable furnishings; 10) household operations; and 11) personal care & effects.

6. Cavite Political Divisions

Alfonso

32

39,674

72.60

Pop. density (per km²) 546.47

Amadeo

26

25,737

46.90

548.76

Bacoor

73

305,699

52.40

5,833.95

Carmona Cavite City

14 84

47,856 99,367

30.90 20.80

1,548.74 4,777.26

379,520 112,446 14,323 107,691

90.10 11.40 45.10 108.70

4,212.21 9,863.68 317.58 990.72

No. of Population Barangays (2000)

City/Municipality

Dasmariñas 73 Gen. Mariano Alvarez 27 Gen. Emilio Aguinaldo 14 Gen. Trias 33

Area (km²)

62

Imus Indang Kawit

97 36 23

195,482 51,281 62,751

64.70 104.90 16.70

3,021.36 488.86 3,757.54

Magallanes Maragondon Mendez Naic

16 27 25 30

18,090 31,227 22,937 72,683

77.10 202.10 20.70 86.00

234.63 154.511 1,108.07 845.15

Noveleta Rosario

16 20

31,959 73,665

8.60 8.20

3,716.16 8,983.54

Silang Tagaytay City Tanza Ternate Trece Martires City

64 34 41 10 13

156,137 45,287 110,517 17,179 41,653

209.40 66.10 98.20 54.70 49.10

745.64 685.13 1,125.43 314.06 848.33

Source: Wikipedia

7.Millennium Development Goals

In September 2000, member states of the United Nations (UN) gathered at the Millennium Summit to affirm commitments towards reducing poverty and the worst forms of human deprivation. The Summit adopted the UN Millennium Declaration which embodies specific targets and milestones in eliminating extreme poverty worldwide. To help track progress in the attainment of the 8 goals and 18 targets of the Millennium Development Goals (MDG) over the period 1990 to 2015, experts from the United Nations Secretariat and International Monetary Fund (IMF), Organization of Economic Cooperation and Development (OECD) and the World Bank identified and selected a set of time-bound and measurable indicators. Data series on the 48 MDG indicators are compiled to provide the basis for the preparation of progress reports by member states of the United Nations (UN) on the implementation of the UN Millennium Declaration.

MDG Indicators (data updated 26 March 2004)

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The United Nations Secretariat, specialized agencies of the UN system, and representatives of the International Monetary Fund (IMF), the World Bank and Organization for Economic Co-operation and Development (OECD) as well as international experts identified and selected the 48 MDG indicators. The millennium indicators for each goal are as follows: Goal 1. Eradicate Extreme Poverty and Hunger

• • • • •

Proportion of population below $1 (PPP) per day Poverty gap ratio Share of poorest quintile in national consumption Prevalence of underweight children under 5 years of age Proportion of population below minimum level of dietary energy consumption

Goal 2. Achieve Universal Primary Education

• • •

Net enrolment ratio in primary education Proportion of pupils starting grade 1 who reach grade 5 Literacy rate of 15-24 year-olds

Goal 3. Promote Gender Equality And Empower Women

• • • •

Ratios of girls to boys in primary, secondary and tertiary education Ratio of literate females to males of 15-24 year-olds Share of women in wage employment in the non-agricultural sector Proportion of seats held by women in national parliament

Goal 4. Reduce Child Mortality

• • •

Under-five mortality rate Infant mortality rate Proportion of 1 year-old children immunized against measles

Goal 5. Improve Maternal Health

• •

Maternal mortality ratio Proportion of births attended by skilled health personnel

Goal 6. Combat HIV/Aids, Malaria and Other Diseases

• • • • •

HIV prevalence among 15-24 year old pregnant women Condom use rate of the contraceptive prevalence rate Number of children orphaned by HIV/AIDS (to be measured by the ratio or proportion of orphans to non-orphans aged 10-14 who are attending school) Prevalence and death rates associated with malaria Proportion of population in malaria risk areas using effective malaria prevention and treatment measures

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• •

Prevalence and death rates associated with tuberculosis Proportion of tuberculosis cases detected and cured under directly observed treatment short course (DOTS)

Goal 7. Ensure Environmental Sustainability

• • • • • • • •

Proportion of land area covered by forest Ratio of area protected to maintain biological diversity to surface area Energy use (kg oil equivalent) per $1 GDP (PPP) Carbon dioxide emissions (per capita) and consumption of ozone-depleting CFCs (ODP tons) Proportion of population using solid fuels Proportion of population with sustainable access to improved water source, urban and rural Proportion of urban population with access to improved sanitation Proportion of households with access to secure tenure (owned or rented)

Goal 8. Develop A Global Partnership For Development

• • • • • • • • • • • • • • • • •

Proportion of total bilateral, sector-allocable ODA of OECD/DAC donors to basic social services (basic education, primary health care, nutrition, safe water and sanitation) Proportion of bilateral ODA of OECD/DAC donors that is untied ODA received in landlocked countries as proportion of their GNIs ODA received in small island developing States as proportion of their GNIs Market access Proportion of total developed country imports (by value and excluding arms) from developing countries and LDCs, admitted free of duties Average tariffs imposed by developed countries on agricultural products and textiles and clothing from developing countries Agricultural support estimate for OECD countries as percentage of their GDP Proportion of ODA provided to help build trade capacity (OECD and WTO are collecting data that will be available from 2001 onwards) Debt sustainability Total number of countries that have reached their HIPC decision points and number that have reached their HIPC completion points (cumulative) Debt relief committed under HIPC initiative, US$ Debt service as a percentage of exports of goods and services Unemployment rate of 15-24 year olds, each sex and total (an improved measure of the targets is under development by ILO for future years) Proportion of population with access to affordable essential drugs on a sustainable basis Telephone lines and cellular subscribers per 100 population Personal computers in use per 100 population and internet users per 100 population

Source: NCSB

MDGWatch Statistics at a glance of the Philippines' Progress based on the MDG indicators as of November 2007

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Goals/Targets/Indicators

Baseline

Target

Latest

Probability*

GOAL 1. ERADICATE EXTREME POVERTY AND HUNGER target 1

Halve, between 1990s and 2015, the proportion of people whose income is less than one dollar a day Proportion of population below national poverty threshold

45.3 1991

22.7 2015

30.4 2003

indicator 2

Poverty gap ratio

13.0 1991

6.5 2015

8.4 2003

indicator 3

Share of poorest quintile in national consumption

4.7 1991

2.4 2015

4.7 2003

indicator 1a

target 2

Halve, between 1990 and 2015, the proportion of people who suffer from hunger

indicator 4

Prevalence of underweight children under 5 years of age

34.5 1990

17.3 2015

24.6 2006

indicator 5

Percent of household with per capita energy less than 100% adequacy

69.4 1993

34.7 2015

56.9 2003

GOAL 2. ACHIEVE UNIVERSAL PRIMARY EDUCATION target 3

Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling

indicator 6

Net enrolment ratio in primary education

99.1 1990

100.0 2015

84.4 2005

indicator 7a

Proportion of pupils starting grade 1 who reach grade 6

69.7 1990

100.0 2015

70.0 2005

indicator 7b

Primary completion rate

63.0 1993

100.0 2015

68.1 2005

Literacy rate of 15 to 24 years old

96.6 1990

100.0 2015

96.6 2003

indicator 8

GOAL 3. PROMOTE GENDER EQUALITY AND EMPOWER WOMEN target 4

Eliminate gender disparity in primary and secondary education preferably by 2005 and to all levels of education no later than 2015

indicator 9a

Ratio of girls to boys in primary education

1.0 1993

1.0 2015

0.9 2005

indicator 9b

Ratio of girls to boys in secondary education

1.1 1993

1.0 2015

1.1 2005

indicator 9c

Ratio of girls to boys in tertiary education

1.3 1993

1.0 2015

1.2 2004

indicator 10

Ratio of literate females to males of 1524 year-olds

1.0 1990

1.0 2015

1.0 2003

indicator 11

Share of women in wage employment in the non-agricultural sector

40.6 1990

50.0 2015

41.2 2003

indicator 12

Proportion of seats held by women in national parliament

11.3 1992

50.0 2015

17.6 2004

GOAL 4. REDUCE CHILD MORTALITY target 5 indicator 13

Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate Under-five mortality rate

80.0 1990

26.7 2015

32.0 2006

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indicator 14

Infant mortality rate

57.0 1990

19.0 2015

24.0 2006

indicator 15

Proportion of 1 year-old children immunized against measles

77.9 1990

100.0 2015

83.7 2005

GOAL 5. IMPROVE MATERNAL HEALTH target 6

Reduce by three-quarters, between 1990 and 2015, the maternal mortality ratio

indicator 16

Maternal mortality

209.0 1990

52.3 2015

162.0 2006

indicator 17

Proportion of births attended by skilled health personnel

58.8 1990

100.0 2015

63.7 2005

GOAL 6. COMBAT HIV/AIDS, MALARIA AND OTHER DISEASES target 7

Have halted by 2015 and begun to reverse the spread of HIV/AIDS

indicator 19a

Condom use rate of the contraceptive prevalence rate

1.0 1993

increasing 2015

1.6 2006

indicator 19c

Contraceptive prevalence rate

40.0 1993

100.0 2015

50.6 2006

target 8

Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases

indicator 21a

Prevalence associated with malaria

118.7 1990

0.0 2015

43.3 2005

indicator 21b

Death rate associated with malaria

1.5 1990

0.0 2015

0.8 1998

indicator 23a

Prevalence associated with tuberculosis

246.0 1990

0.0 2015

157.8 2003

indicator 23b

Death rate associated with tuberculosis

39.1 1990

0.0 2015

37.4 1998

indicator 24a

Proportion of tuberculosis cases detected under directly observed treatment short course (DOTS)

53.0 2001

70.0 2015

63.0 2006

indicator 24b

Proportion of tuberculosis cases cured under directly observed treatment short course (DOTS)

73.0 2001

85.0 2015

83.0 2006

GOAL 7. ENSURE ENVIRONMENTAL SUSTAINABILITY target 9

Integrate the principles of sustainable development into country policies & programmes to reverse the loss of environmental resources

indicator 25

Proportion of land area covered by forest

20.5 1990

increasing

23.9 2003

indicator 26

Ratio of area protected to maintain biological diversity to surface area

8.5 1990

increasing

12.7 2006

indicator 28

Consumption of ozone-depleting CFCs (ODP tons)

2981 1990

decreasing

681 2006

indicator 29

Proportion of households using solid fuels for cooking

66.2 1990

decreasing

42.1 2003

target 10 indicator 30

Halve, by 2015, the proportion of population without sustainable access to safe drinking water and improved sanitation Proportion of population with sustainable access to improved water source

73.0 1990

86.5 2015

80.2 2004

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indicator 31 target 11 indicator 32

Proportion of urban population with access to improved sanitation

67.6 1990

83.8 2015

86.2 2004

By 2020, have achieved significant improvement in the lives of at least 100 million slum dwellers Proportion of households with access to secure tenure

91.0 1990

increasing

81.2 2000

GOAL 8. DEVELOP A GLOBAL PARTNERSHIP FOR DEVELOPMENT target 15 indicator 44 target 16 indicator 45

Deal comprehensively with the debt problems of developing countries thru national & international measures in order to make debt sustainable in the long term Debt service as a percentage of exports of goods and services

27.2 1990

decreasing

12.0 2006

In cooperation with developing countries, develop and implement strategies for decent and productive work for youth Unemployment rate of 15-24 year olds

10.9 1990

decreasing

16.4 2005

target 18

In cooperation with the private sector, make available the benefits of new technologies, especially information and communications

indicator 47a

Telephone lines subscribers per 100 population

1.5 1990

increasing

8.3 2006

indicator 47b

Cellular phone subscribers per 100 population

0.1 1991

increasing

41.3 2005

* based on the comparison of actual (from baseline to latest data) and required (from baseline to target year) rates of progress Probability of Achieving the Goal Low ; Pace of Progress is less than 0.5

Medium ; Pace of Progress between 0.5 and 0.9

High ; Pace of Progress is greater than 0.9

Source: NCSB

8. E-Procurement System

E-Procurement is more than just a system for making purchases online. A properly implemented system can connect companies and their business processes directly with suppliers while managing all interactions between them. This includes management of correspondence, bids, questions and answers, previous pricing, and multiple emails sent to multiple participants.

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crucial suppliers. It provides those who use it with a set of built-in monitoring tools to help control costs and assure maximum supplier performance. It provides an organized way to keep an open line of communication with potential suppliers during a business process. The system allows managers to confirm pricing, and leverage previous agreements to assure each new price quote is more competitive than the last. Benefits of Adopting an E-Procurement System E-Procurement helps with the decision-making process by keeping relevant information neatly organized and time-stamped. Most are template-driven which makes all transactions standardized and trackable. Keeping track of all bids means leveraging your knowledge to obtain better pricing. Companies can focus on their most lucrative trading partners and contracts. Well-managed e-procurement helps reduce inventory levels. Knowing product numbers, bid prices and contact points can help businesses close a deal while other suppliers are struggling to gather their relevant data. E-Procurement systems that allow multiple access levels and permissions help managers organize administrative users by roles, groups, or tasks. Procurement managers do not need to be as highly trained or paid because such systems are standardized and easy to learn. Typical Adoption Strategies Some firms have discovered that many of their transactions still take place on paper, and they have run into problems ranging from content management to supplier participation in their systems. Most companies who desire to make the switch fall into two camps. The first are the slow step-by-step adopters. They implement one piece of their system at a time and slowly bring trading partners on board. The others follow the total replacement model. They build a totally parallel system, test it, then switch over to it when it works. There is usually some pain involved and some mistakes are discovered, but by and large these are absorbed and the business continues. Pitfalls to Avoid Don»t bite off more than you can chew. The parallel system approach should only be used if you have the time and resources to do this. If not, stick to the incremental approach. Don»t expects an immediate return on investment. A short-tem gain may be noticeable, but it may be eaten up by the cost of staff training and equipment purchases. A year or two down the road, a larger ROI should be evident Source: Wikipedia

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9. Enterprise Resource Planning From Wikipedia, the free encyclopedia Enterprise Resource Planning systems (ERPs) integrate (or attempt to integrate) all data and processes of an organization into a unified system. A typical ERP system will use multiple components of computer software and hardware to achieve the integration. A key ingredient of most ERP systems is the use of a unified database to store data for the various system modules. The term ERP originally implied systems designed to plan the utilization of enterprise-wide resources. Although the acronym ERP originated in the manufacturing environment, today's use of the term ERP systems has much broader scope. ERP systems typically attempt to cover all basic functions of an organization, regardless of the organization's business or charter. Business, non-profit organizations, non governmental organizations, governments, and other large entities utilize ERP systems. Additionally, it may be noted that to be considered an ERP system, a software package generally would only need to provide functionality in a single package that would normally be covered by two or more systems. Technically, a software package that provides both payroll and accounting functions (such as QuickBooks) would be considered an ERP software package. However, the term is typically reserved for larger, more broadly based applications. The introduction of an ERP system to replace two or more independent applications eliminates the need for external interfaces previously required between systems, and provides additional benefits that range from standardization and lower maintenance (one system instead of two or more) to easier and/or greater reporting capabilities (as all data is typically kept in one database). Examples of modules in an ERP which formerly would have been stand-alone applications include: Manufacturing, Supply Chain, Financials, CRM, Human Resources, and Warehouse Management.

Overview Looking more closely at ERP systems, a key factor is the integration of data from all aspects of an organization. To accomplish this, an ERP system typically runs on a single database instance with multiple software modules providing the various business functions of an organization. Some organizations - typically those with sufficient in-house IT skills to

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integrate multiple software products - choose to only implement portions of an ERP system and develop an external interface to other ERP or stand-alone systems for their other application needs. For instance, the PeopleSoft HRMS and Financials systems may be perceived to be better than SAP's HRMS solution. And likewise, some may perceive SAP's manufacturing and CRM systems as better than PeopleSoft's equivalents. In this case these organizations may justify the purchase of an ERP system, but choose to purchase the PeopleSoft HRMS and Financials modules from Oracle, and their remaining applications from SAP. This is very common in the retail sector, where even a mid-sized retailer will have a discrete Point-of-Sale (POS) product and financials application, then a series of specialized applications to handle business requirements such as warehouse management, staff rostering, merchandising and logistics. Ideally, ERP delivers a single database that contains all data for the software modules, which would include: Manufacturing Engineering, Bills of Material, Scheduling, Capacity, Workflow Management, Quality Control, Cost Management, Manufacturing Process, Manufacturing Projects, Manufacturing Flow Supply Chain Management Inventory, Order Entry, Purchasing, Product Configurator, Supply Chain Planning, Supplier Scheduling, Inspection of goods, Claim Processing, Commission Calculation Financials General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Fixed Assets Projects Costing, Billing, Time and Expense, Activity Management Human Resources Human Resources, Payroll, Training, Time & Attendance, Benefits Customer Relationship Management Sales and Marketing, Commissions, Service, Customer Contact and Call Center support Data Warehouse and various Self-Service interfaces for Customers, Suppliers, and Employees Enterprise Resource Planning is a term originally derived from manufacturing resource planning (MRP II) that followed material requirements planning (MRP). MRP evolved into ERP when "routings" became major part of the software architecture and a company's capacity planning activity also became a part of the standard software activity. ERP systems typically handle the manufacturing, logistics, distribution, inventory, shipping, invoicing, and accounting for a company. Enterprise Resource Planning or ERP software can aid in the control of many business activities, like sales, marketing, delivery, billing, production, inventory management, quality management, and human resources management.

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ERPs are often incorrectly called back office systems indicating that customers and the general public are not directly involved. This is contrasted with front office systems like customer relationship management (CRM) systems that deal directly with the customers, or the eBusiness systems such as eCommerce, eGovernment, eTelecom, and eFinance, or supplier relationship management (SRM) systems. ERPs are cross-functional and enterprise wide. All functional departments that are involved in operations or production are integrated in one system. In addition to manufacturing, warehousing, logistics, and Information Technology, this would include accounting, human resources, marketing, and strategic management. ERP II means open ERP architecture of components. The older, monolithic ERP systems became component oriented. EAS - Enterprise Application Suite is a new name for formerly developed ERP systems which include (almost) all segments of business, using ordinary Internet browsers as thin clients.

Before Prior to the concept of ERP systems, departments within an organization would have their own computer systems. For example, the Human Resources (HR) department, the Payroll (PR) department, and the Financials department. The HR computer system (Often called HRMS or HRIS) would typically contain information on the department, reporting structure, and personal details of employees. The PR department would typically calculate and store paycheck information. The Financials department would typically store financial transactions for the organization. Each system would have to rely on a set of common data to communicate with each other. For the HRIS to send salary information to the PR system, an employee number would need to be assigned and remain static between the two systems to accurately identify an employee. The Financials system was not interested in the employee level data, but only the payouts made by the PR systems, such as the Tax payments to various authorities, payments for employee benefits to providers, and so on. This provided complications. For instance, a person could not be paid in the Payroll system without an employee number.

After ERP software, among other things, combined the data of formerly disparate applications. This made the worry of keeping employee numbers in synchronization across multiple systems disappear. It standardized and reduced the number of software specialties required within larger organizations. Best Practices

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Best Practices were also a benefit of implementing an ERP system. When implementing an ERP system, organizations essentially had to choose between customizing the software or modifying their business processes to the "Best Practice" functionality delivered in the vanilla version of the software. Typically, the delivery of best practice applies more usefully to large organizations and especially where there is a compliance requirement such as IFRS, SarbanesOxley or Basel II, or where the process is a commodity such as electronic funds transfer. This is because the procedure of capturing and reporting legislative or commodity content can be readily codified within the ERP software, and then replicated with confidence across multiple businesses who have the same business requirement. Where such a compliance or commodity requirement does not underpin the business process, it can be argued that determining and applying a best practice actually erodes competitive advantage by homogenizing the business compared to everyone else in their industry sector. Evidence for this can be seen within EDI, where the concept of best practice, even with decades of effort remains elusive. A large retailer, for example, wants EDI plus some minor tweak that they perceive puts them ahead of their competition. Midmarket companies adopting ERP often take the vanilla version and spend half as much as the license cost doing customizations that deliver their competitive edge. In this way they actively work against best practice because they perceive that the way they operate is best practice, irrespective of what anyone else is doing. Implementation Because of their wide scope of application within a business, ERP software systems are typically complex and usually impose significant changes on staff work practices (if they did not, there would be little need to implement them). Implementing ERP software is typically not an "in-house" skill, so even smaller projects are more cost effective if specialist ERP implementation consultants are employed. The length of time to implement an ERP system depends on the size of the business, the scope of the change and willingness of the customer to take ownership for the project. A small project (eg, a company of less than 100 staff) may be planned and delivered within 3 months; however, a large, multi-site or multi-country implementation may take years. The most important aspect of any ERP implementation is that the company who has purchased the ERP product takes ownership of the project. To implement ERP systems, companies often seek the help of an ERP vendor or of third-party consulting companies. These firms typically provide three areas of professional services: Consulting, Customization and Support. Consulting Services

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The Consulting team is typically responsible for your initial ERP implementation and subsequent delivery of work to tailor the system beyond "go live". Typically such tailoring includes additional product training; creation of process triggers and workflow; specialist advice to improve how the ERP is used in the business; system optimization; and assistance writing reports, complex data extracts or implementing Business Intelligence. The consulting team are also responsible for planning and jointly testing the implementation. This is a critical part of the project, and one that is often overlooked. Consulting for a large ERP project involves three levels: systems architecture, business process consulting (primarily re-engineering) and technical consulting (primarily programming and tool configuration activity). A systems architect designs the overall dataflow for the enterprise including the future dataflow plan. A business consultant studies an organization's current business processes and matches them to the corresponding processes in the ERP system, thus 'configuring' the ERP system to the organization's needs. Technical consulting often involves programming. Most ERP vendors allow modification of their software to suit the business needs of their customer. For most mid-sized companies, the cost of the implementation will range from around the list price of the ERP user licenses to up to twice this amount (depending on the level of customization required). Large companies, and especially those with multiple sites or countries, will often spend considerably more on the implementation than the cost of the user licenses -- three to five times as more is not uncommon for a multisite implementation. Customization Services Customization is the process of extending or changing how the system works by writing new user interfaces and underlying application code. Such customizations typically reflect local work practices that which are not currently in the core routines of the ERP system software. Examples of such code include early adopter features (e.g., mobility interfaces were uncommon a few years ago and were typically customized) or interfacing to third party applications (this is 'bread and butter' customization for larger implementations as there are typically dozens of ancillary systems that the core ERP software has to interact with). The Professional Services team is also involved during ERP upgrades to ensure that customizations are compatible with the new release. In some cases the functionality delivered via previous a customization may have been subsequently incorporated into the core routines of the ERP software, allowing customers to revert back to standard product and retire the customization completely. Customizing an ERP package can be very expensive and complicated, because many ERP packages are not designed to support customization, so most businesses

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implement the best practices embedded in the acquired ERP system. Some ERP packages are very generic in their reports and inquiries, such that customization is expected in every implementation. It is important to recognize that for these packages it often makes sense to buy third party plug-ins that interface well with your ERP software rather than reinventing the wheel. Customization work is usually undertaken as bespoke software development on a time and materials basis. Because of the specialist nature of the customization and the 'one off' aspect of the work, it is common to pay in the order of $200 per hour for this work. Also, in many cases the work delivered as customization is not covered by the ERP vendors Maintenance Agreement, so while there is typically a 90-day warranty against software faults in the custom code, there is no obligation on the ERP vendor to warrant that the code works with the next upgrade or point release of the core product. One often neglected aspect of customization is the associated documentation. While it can seem like a considerable -- and expensive -- overhead to the customization project, it is critical that someone is responsible for the creation and user testing of the documentation. Without the description on how to use the customization, the effort is largely wasted as it becomes difficult to train new staff in the work practice that the customization delivers. Maintenance and Support Services Once your system has been implemented, the consulting company will typically enter into a Support Agreement to assist your staff keeps the ERP software running in an optimal way. A Maintenance Agreement typically provides you rights to all current version patches, and both minor and major releases, and will most likely allow your staff to raise support calls. While there is no standard cost for this type of agreement, they are typically between 15% and 20% of the list price of the ERP user licenses. Advantages In the absence of an ERP system, a large manufacturer may find itself with many software applications that do not talk to each other and do not effectively interface. Tasks that need to interface with one another may involve: • • • • • •

design engineering (how best to make the product) order tracking from acceptance through fulfillment the revenue cycle from invoice through cash receipt managing interdependencies of complex Bill of Materials tracking the 3-way match between Purchase orders (what was ordered), Inventory receipts (what arrived), and Costing (what the vendor invoiced) the Accounting for all of these tasks, tracking the Revenue, Cost and Profit on a granular level.

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Change how a product is made, in the engineering details, and that is how it will now be made. Effective dates can be used to control when the switch over will occur from an old version to the next one, both the date that some ingredients go into effect, and date that some are discontinued. Part of the change can include labeling to identify version numbers. Computer security is included within an ERP to protect against both outsider crime, such as industrial espionage, and insider crime, such as embezzlement. A data tampering scenario might involve a terrorist altering a Bill of Materials so as to put poison in food products, or other sabotage. ERP security helps to prevent abuse as well. Disadvantages Many problems organizations have with ERP systems are due to inadequate investment in ongoing training for involved personnel, including those implementing and testing changes, as well as a lack of corporate policy protecting the integrity of the data in the ERP systems and how it is used. Limitations of ERP include: •

•

• • • • •

•

Success depends on the skill and experience of the workforce, including training about how to make the system work correctly. Many companies cut costs by cutting training budgets. Privately owned small enterprises are often undercapitalized, meaning their ERP system is often operated by personnel with inadequate education in ERP in general, such as APICS foundations, and in the particular ERP vendor package being used. Personnel turnover; companies can employ new managers lacking education in the company's ERP system, proposing changes in business practices that are out of synchronization with the best utilization of the company's selected ERP. Customization of the ERP software is limited. Some customization may involve changing of the ERP software structure which is usually not allowed. Re-engineering of business processes to fit the "industry standard" prescribed by the ERP system may lead to a loss of competitive advantage. ERP systems can be very expensive to install. ERP vendors can charge sums of money for annual license renewal that is unrelated to the size of the company using the ERP or its profitability. Technical support personnel often give replies to callers that are inappropriate for the caller's corporate structure. Computer security concerns arise, for example when telling a non-programmer how to change a database on the fly, at a company that requires an audit trail of changes so as to meet some regulatory standards. ERPs are often seen as too rigid and too difficult to adapt to the specific workflow and business process of some companies—this is cited as one of the

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• • •

• • • • •

main causes of their failure. Systems can be difficult to use. The system can suffer from the "weakest link" problem—an inefficiency in one department or at one of the partners may affect other participants. Many of the integrated links need high accuracy in other applications to work effectively. A company can achieve minimum standards, then over time "dirty data" will reduce the reliability of some applications. Once a system is established, switching costs are very high for any one of the partners (reducing flexibility and strategic control at the corporate level). The blurring of company boundaries can cause problems in accountability, lines of responsibility, and employee morale. Resistance in sharing sensitive internal information between departments can reduce the effectiveness of the software. There are frequent compatibility problems with the various legacy systems of the partners. The system may be over-engineered relative to the actual needs of the customer.

10. JIT and Purchasing

Partnerships In the past companies were capable of remaining independent and competitive when they had the capability and resources necessary to produce a product. This is no longer possible. As technology increases in complexity, companies overcome capital limitations or labor intensive requirements by becoming dependent on suppliers to provide services. Many services and Original Equipment Manufacturing (OEM) suppliers have evolved as the result. Companies now appreciate that long-term success relies on the quality of the customer-supplier relationship established so that they will develop successful partnerships. Hence, successful partnerships require the development of mutually beneficial programs.

Commitments To enable suppliers to deal with customers in a confident manner, they must be backed by the level of commitment given by manufacturers. Without a partnership between the customer and supplier, there will always be hesitation instead of trust. The concept of trust and commitment in JIT is used to build partnerships and to reduce the needs for materials-production control, receiving inspection or inventory buffers that many companies have constructed. Contracts used by JIT manufacturing company to record the details of an agreement usually stress the level of commitments.

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Contracts Supporting Partnerships By ensuring fair and equitable contracts, many of the problems in developing customer-supplier relationships are overcome by JIT manufacturers. The goal of JIT is to make long-term contracts with suppliers. A long-term contract gives the supplier a job security for as long as the supplier remains competitive and committed. Long-term contracts usually extend for one or more years and can consist of one or more part requirements.

Quality for JIT Quality is an integral part of a JIT program. Quality control concentrates on quality at every stage of manufacture including the purchase of raw material. To increase the supplier quality two methods are used in a JIT system; supplier quality engineering (SQE) and receiving inspection (RI). Supplier quality engineering is used to evaluate supplier capability, help suppliers develop process control, resolve quality issues with suppliers, and certify that suppliers qualify for JIT production. Receiving inspection provides an inspection service for purchasing.

Delivery of Purchased Material On time delivery, frequency of delivery, and receiving and stocking the material are three major aspects that are important in purchasing. On-time material delivery means that the work stations receive the material just before it is required. A suppliers ability to deliver on time is a combination of factors ; transportation, raw material availability, price, holidays, etc. If a factor arises that could affect the delivery schedule, the company should be able to increase production schedules and establish enough inventory to see them past the expected disruption. Frequent delivery is required if dependency on inventory is to be minimized. The suppliers' ability to make frequent deliveries depends on the suppliers ability to produce product at the rate the customer requires delivery. Local suppliers usually have an advantage in being able to deliver daily. Frequent delivery means that a loss of one small shipment will have less significance than the loss of a large shipment in on time delivery. Material shipping and handling requirements: Costs associated with material shipping includes packaging and handling costs. Packaging costs mainly include material handling, shipping damage, and the cost of packaging materials. Handling costs include receiving, unpacking, counting, repacking, stocking, kitting and moving

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the material to the production area. Reusable packaging material, packing containers that can be used on the production line, and standardized containers that eliminate counting are ways to reduce costs and damage in transporting. These cost reducing methods are then reviewed with the supplier to determine how the supplier can best meet these needs. Scheduling: A major concern of purchasing managers is the process of coordinating the manufacturing need for materials. The process is complicated by periodic changes in product mix and volume requirement and the continual introduction of new products. Companies solve the problem of how much material to order and when to order by placing contracts based on order requirements supplied by material control. Material control makes its decisions based on the master schedule less current inventory. In a JIT system the supplier picks up the information on the next production requirements every time a delivery is made. Reasonable Cost Price of purchased material is an important issue. Material that cause or require additional production costs reduce company profits. Every extra inspection or test step, rework requirement or item scrapped represents a reduction in company profit. These additional costs are remedied by purchasing products that meet both specification and production needs.

The most challenging area for most manufacturers in achieving JIT is the purchasing of raw materials and parts. This is important because an internal JIT system can only be operated successfully when the material being fed into it are of sufficient quality and delivered on time. Therefore, unless the quality and delivery of purchased material are not production issues, the purchasing function should begin to establish a JIT supplier base. In JIT purchasing several tactics are being used to achieve certain goals and objectives.

Goals Secure a steady flow of quality parts. Reduce the lead time required for ordering product. Reduce the amount of inventory in the supply and production pipe lines. Reduce the cost of purchased material.

Objectives Improve purchasing efficiency. Improve quality and delivery performance of suppliers. Isolate factors that influence the cost of material. Remove unnecessary cost factors in the materials supply system.

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Tactics Regard suppliers as an extension of the internal manufacturing process and cultivate them as long term business partners. Establish long term purchasing and supply commitments. Improve communication with suppliers. Involve suppliers in early stages of new product planning. Use supplier expertise to improve design manufacturability and reduce product cost.

Purchasing Requirements Material purchased in a JIT system should meet three requirements: An acceptable level of quality, On time delivery schedule, and A reasonable cost.

Developing JIT Suppliers It is important to develop a link between the companies so to ensure a long-term business relationship. This will provide both companies with the stability required to optimize the profit potential. There are four needs that affect the supplier's ability to perform: trust, communications, linearity of production, and time and visibility to make changes.

Trust The most basic need of suppliers is to be able to trust that the customer will provide stability if the supplier meets requirements. This will allow the two organizations to work much more closely than they would based just on a contract.

Communications To successfully manage the communication link between customers and suppliers can be done in two ways: Supplier contacts: To overcome the complexity of the communication problem, some companies assign a buyer-quality engineer team to be the contact for each supplier. The advantage of this solution is that it provides a formal communication channel for the supplier and reduces the potential for miscommunications. Supplier programs: Supplier programs keep the supplier informed on topics of mutual interest and ensure the supplier access to information that will have an effect on the supplier's production. These programs strengthen supplier relationships by opening communications and providing an understanding of one another needs.

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Linear Production Schedules Linear production schedules contribute to improving the performance of manufacturing. In a JIT system, the need for the supplier to track the customers needs closely is important. For this to occur, the supplier must reduce lead time to the minimum. This consists of isolating the bottlenecks in the operation, balancing the production system, and reducing setup-time.

Time and visibility to make changes Most suppliers can respond to changes in customer demand, but they must have enough time to make the changes. The types of changes suppliers must make are purchasing materials, adding equipment, establishing work shifts, and hiring and training labor. With better schedule visibility, suppliers could react more quickly to changes in production requirements.

Partnerships - A Mutually Beneficial System A mutually beneficial system requires that the supplier and customer work in cooperation to achieve a greater benefit than they would have individually. Three mutually beneficial systems are : Early supplier involvement Just-in-Time materials shipment Invoicing systems

Early supplier involvement Involving the supplier early in the design phase of a new product can obtain the best performance from a supplier. Suppliers will often make suggestions that can improve the design of the product. Supplier feedback provides avenues for improvement in cost, quality, and scheduling.

Just-in-Time materials shipments Deliveries can cause traffic problems. In addition, there are the problems of unloading material, unpacking it, and moving it to the production-line. Several systems have been developed to improve the efficiency of deliveries to customer. An example is the "Bus Route" system installed by Xerox Corporation. The bus routes system improves material flow, communications, and the interaction of companies.

Invoicing systems JIT requires frequent deliveries. There are solutions to handling increased invoice load. Electronic invoicing will work where compatible equipment transmits customers accounts directly. Another solution is to pay suppliers based on purchasing records that have completed the assembly process. A third possibility is to batch

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invoices and submit them on a bimonthly or monthly schedule. A company can also invoice the monthly deliveries on one invoice, hence decreasing the amount of paperwork.

Customer-Supplier Proximity Customer-supplier partnerships can be formed irrespective of the physical distance between two companies. Close proximity, however, offers three advantages : early supplier involvement, line problems are easier to resolve, and communications are easier. The criteria for determining supplier selection are based on suppliers ability, location and price. Source :Wikipedia 11. Minimum Wage Calabarzon

DAILY MINIMUM WAGE RATES REGION IV-A, CALABARZON a/ Wage Order No. IVA-12 b/ Effective 05 October 2007 Agriculture

Retail & Service Establishment

NonAREAS

Agriculture

Cottage Plantation

employing not more

Non-

than 10 workers

Plantation

GROWTH CORRIDOR AREA EMA/1 CAVITE - Bacoor, Imus P 300.00

RIZAL - Cainta, Taytay P 275.00

P 255.00

LAGUNA - Biñan, San Pedro P

P 195.00

263.00 CAVITE - Carmona, Cavite City, Dasmariñas, Gen. Trias, Rosario LAGUNA - Cabuyao, Calamba City, Los Baños,San Pablo City, Sta. Cruz, Sta. Rosa. RIZAL - Antipolo City 282.00

257.00

237.00

245.00

177.00

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CAVITE - Kawit, Silang, Tagaytay City, Tanza, Trece Martirez BATANGAS - Batangas City, Bauan, Lipa City, San Pascual, Sto. Tomas, Tanauan City QUEZON - Lucena City 277.00

252.00

232.00

240.00

174.00

EGA/2 CAVITE - Gen.Mariano Alvarez 277.00

252.00

RIZAL - Rodriguez, Tanay 232.00

240.00

172.00

EMERGING GROWTH AREA RIZAL - Angono, Binangonan, San Mateo BATANGAS - Balayan, Calaca, Calatagan, Lemery, Mabini, Nasugbu, Rosario, San Jose QUEZON - Candelaria, Sariaya 260.00

235.00

215.00

CAVITE - Indang, Naic, Noveleta, Ternate

223.00

LAGUNA - Paete, Pakil

159.00 BATANGAS - San

Juan RIZAL - Pililia

QUEZON - Tiaong

249.00

224.00

204.00

212.00

146.00

207.00

145.00

RBA/3 BATANGAS - Taysan 244.00

RIZAL - Teresa 219.00

199.00

RESOURCE BASED AREA CAVITE - Alfonso, Amadeo, Gen. Aguinaldo, Magallanes, Maragondon, Mendez-Nunez LAGUNA - Alaminos, Bay, Calauan, Cavinti, Famy, Kalayaan, Liliw, Luisiana, Lumban, Mabitac, Magdalena, Majayjay, Nagcarlan, Pagsanjan, Pangil, Pila, Rizal, Sta Maria, Siniloan, Victoria BATANGAS - Agoncillo, Alitagtag, Balete, Cuenca, Ibaan, Laurel, Lian, Lobo, Malvar, Mataas na Kahoy, Padre Garcia, San Luis, San Nicolas, Sta. Teresita, Taal, Talisay, Tingloy, Tuy RIZAL - Baras, Cardona, Jala-Jala, Morong 242.00

217.00

197.00

205.00

143.00

QUEZON Agdangan, Alabat, Atimonan, Buenavista, Burdeos, Calauag, Catanauan, Dolores, Gen. Luna,

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Gen. Nakar, Guinayangan, Gumaca, Infanta, Jomalig, Lopez, Lucban, Macalelon, Mauban, Mulanay, Padre Burgos, Pagbilao, Panulukan, Patnanungan, Perez, Pitogo, Plaridel, Polilio, Quezon, Real, Sampaloc, San Andres, San Antonio, San Francisco, San Narciso, Tagkawayan, Tayabas, Unisan 224.00

204.00

184.00

192.00

136.00

a/ Covers the Cities of Cavite , Tagaytay, Trece Martirez, Calamba, San Pablo, Sta.

Rosa, Batangas, Lipa, Tanaun, Antipolo and Lucena and the Provinces of Cavite, Laguna, Batangas, Rizal and Quezon. b/ Grants a P6.00 - P13.00 per day wage increase to all minimum wage workers

and employees in the private sector in the region depending on the area classification

Issued 22 August 2007, published on 20 September 2007 in the Phil. Daily Inquirer

12. Nominal and Real Wage

CURRENT NOMINAL AND REAL WAGE*, By Region Non-Agriculture December 2007 (2000 = 100)

REGION

NOMINAL WAGE a/

REAL WAGE b/

NCR

362.00

235.42

CAR

235.00

160.96

I

230.00

157.21

II

223.00

159.63

III

287.00

202.83

IV-A

300.00

208.33

IV-B

237.00

167.37

V

226.00

156.73

VI

235.00

166.43

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VII

250.00

168.46

VIII

228.00

161.59

IX

215.00

149.72

X

244.00

164.31

XI

250.00

168.92

XII

229.50

163.00

XIII

220.00

152.35

ARMM

200.00

128.45

* Includes COLAs a/ Highest nominal wage, November 2007 b/ Based on November 2007.CPI.

Source: National Wages and Productivity Commission Department of Labor and Employment

13. Maps of Cavite

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