CHAPTER I

1. INTRODUCTION
The purpose of the project is to analyze the technical, economic, and financial feasibility.
social for the implementation of a sewing workshop in the municipality of Santa
Cruz - Bolivia to take advantage of inputs such as imported threads from Chile and others.
countries and human resources in the project area where it is necessary to take advantage
the workforce to have the ability to equip ourselves with the best machinery
for the development of our product and thus be able to generate good benefits
economic and social. The project will be developed at the pre-feasibility level and
They have predominantly economic characteristics.

The main motivation is given by the knowledge of the production process and
legal advice.

Law for the Reconversion of the Textile Industry (SUPREME DECREE N° 28761)
article 5

I. Within the framework of the productive promotion policies of the national plan of
development will prioritize access to credit and technology for small
manufacturers of textile and garment production.
II. The Ministry of Production and Micro Enterprises will carry out the management.

necessary for the private sector to make SELL agreements

BOLIVIAN and support the training of retail vendors
used clothing.
III. The Ministry of Production and Microenterprise through the Vice-Ministry of
trade and exports in coordination with the ministry of relations
outdoors and worship and the promotion center Bolivia - CEPROBOL,
it will structure the national plan for opening and achieving markets
export for productive initiatives.

FINANCING TOWARDS THE PRODUCTIVE SECTORS...

The garment sector is heterogeneous, competitive (formal and informal)

using a variety of national and imported production factors and the use

1
it is also diverse depending on sex, age, occupation among other aspects
therefore, this undertaking is considered a necessity and
opportunity.

FINANCING FOR THE PRODUCTIVE SECTOR

The credit amount conditions are based on the purpose of the

loan and the customer's repayment capacity, being the conditions
preliminaries the following:

Amount Up to Bs. 24,000 (*) Up to Bs. 80,000 (**)

Deadline Up to 12 years

Interest Rate 6% annual on balances

Grace Period According to the purpose of the credit and the ability to pay
up to 2 years

Maximum Amount for Entrepreneurs

Maximum amount to be assigned to a micro or small productive unit

1. Aimed at financing productive activities, transformation, and tourism,

excluding the sectors of mining, hydrocarbons, and energy generation.

1.1 OBJECTIVES

1.1.1 GENERAL OBJECTIVE

Production and marketing of clothing in the city of Santa Cruz
in the municipality of Santa Cruz, through the implementation of workshop
confections, using fabrics, human resources, and generating benefits
economic.

2
SPECIFIC OBJECTIVES
Generate sources of employment
Know consumer preferences

1.2. JUSTIFICATION
The manufacturing of clothing is a project considered viable for the
investors given that it is a general need for all people and their
the market is very broad.
The implementation of the project not only generates benefits for consumers and
investors, but also represents an opportunity for other sectors
industrial connections and services (suppliers of inputs, direct jobs and
indirect, etc.) within the municipality of Santa Cruz de la Sierra.

METHODOLOGY

The deductive method will be used for the preparation of this project, to
describe and analyze secondary and primary information:

PRIMARY SOURCES OF INFORMATION

Interview.

Surveys.

Observation.

SECONDARY SOURCES OF INFORMATION

National Institute of Statistics (INE)

Chamber of Industry and Commerce (CAINCO)

Bibliographic Research.

Analysis of other work carried out.

Internet.

3
 CHAPTER II
MARKET STUDY

2.1 OBJECTIVE

Analyze the jeans market (clothing–garments) for

knowing their behavior and trend, identifying the advantages and
disadvantages for generating economic and social benefits.

2.2 DEFINITION OF CHARACTERISTICS OF CLOTHING

JEANS PANTS

The denim pants (also called jeans) is a type of pants

made with a fairly strong cotton fabric called denim.
Originally this was a work garment, but starting from the decades of
Since 1950, they began to be imposed as a youthful garment.

Gross, R. G.-P. (2012). Larousse Dictionary. Incredible Encyclopedia.

Jeans are characterized by being blue, thick pants, rough to the touch.
and very resistant to any type of aggression, which means a lot to many others
pants torn or destroyed. The jeans are made from threads of
cotton that are hardened and maintained under a long process to then
they are spun together (combining white and blue threads). In some cases, the
jeans are worked with hard and rough surfaces to achieve that style that
they possess.
[Link]/general/[Link] s.f.)

Jeans are one of the most popular items of any

dressing room. They are available in different sizes, lengths, and styles, as well as

4
also in different styles related to the waist cut, with
the way the jeans fall over the feet, with the color, with how thick or
the fabric is elasticized, etc.

2.2.1. Characteristics of jeans

Diversity of pants models
The product of clothing - jeans pants is characterized by being a
product with a wide variety of models.

Pants for men and

women

Bell-bottom jeans
Tight jeans
Loose jeans
Boot cut jeans
Straight pants

2.3 MARKET DELIMITATION AND MARKET CHARACTERISTICS

2.3.1. Market structure and market characteristics

The present project has as its geographical delimitation the municipality of Santa.
Cruz and has as market structures imperfect competition whose
characteristics are some of the following:

There is product differentiation. That is to say, each company offers

a product that is at least somewhat different from others
Heterogeneity of the sector (formal and informal) (national and imported)
There are barriers to entry and exit.
A large number of clothing suppliers and demanders converge.

5
 The prices of clothing items are not set in the market.
Formal

2.4 USES AND USERS

Jeans are for mixed use and the users are individuals and companies.

2.5 THE OFFER

The supply is defined as "the quantity of goods and/or services that producers
they are willing to sell in the market at a set price.

Marketing Dictionary

The offer allows us to analyze and identify facts, events, problems, and effects.
currently taking place in a market and a given product. This analysis
it will allow identifying qualitative and quantitative, secondary and primary variables and
compare it with historical behavior.

The economic analysis of the supply of a good and/or service can be initiated
first deducing the offer category in its two components: products and/or
services and producers and/or suppliers. Their analysis will be conducted according to the

next scheme.

6
 OFFER PRODUCT PRODUCERS

DEDUCTION

IDENTIFICATION OF THE
PRODUCT IDENTIFICATION PRODUCERS
qualities NUMBER
PHYSICAL NATIONALS, FOREIGNERS
VARIETIES CAPACITY
VARIABLES
FORMS OF PRESENTATION -LOCATION - PRODUCING AREAS
FACTORS SOLID TYPE OF ORGANIZATION
SAME Barriers to entry
IMPROVED Exit barriers (procedure for creation
Of companies

QUALITY CAPACITY
ANALYSIS
CUALITATIV CUANTITATIV

OBJECTIVE QUALITY AND

COMPETITIVIDAD MAXIMIZAR
7
QUALITIES OF CLOTHING - JEANS

The jeans or denim, as it is also known, is a type of clothing characterized by a

fabric resistant to rough work and a finish that is permanently updated
in its use.

It is used by all ages

May your fabric be durable
Variety of design
Diversity of prices.

For the production of jeans in the city of Santa Cruz, there are several
companies that can provide the necessary fabric, but within these there are
four companies best known for their highest import volumes:

COMPANIES TYPES OF FABRICS THAT ORIGINATE FROM

IMPORTER OF PROVIDING FABRIC
Fabrics
CHARITO JHESSENH LYCRA JEANS CHINA
VICUÑA LYCRA
BRAZIL ELIDA NORMAL JEANS Brazilian
TELEMAX NORMAL JEANS AMERICANO
RECORD NORMAL JEANS Taiwanese

The main supplier for the raw material for the price of the fabric, for its
Responsibility and trajectory will be the importer of fabrics from Brazil, Elida. The fabric is
acquires in rolls, where each roll measures 100 meters long by 1.5 meters wide
width.

The company Elida is located in Santa Cruz de la Sierra in the market of 7

streets.

8
Denim went from being an ideal fabric for designing work clothes to becoming
as a sign of the times we live in, marking the look and the aesthetics of the clothing
actual

VARIETIES OF JEANS

In the municipality of Santa Cruz, there is a wide variety of models and cuts of
jeans pants are described as follows:

Types of jeans by cut:

MODELS CHARACTERISTICS USO

. They are characterized by . They favor the

to have the legs of tall women and
same width (from the thin. Moreover
thigh until the end of the if you have the
leg). very hips
. Visually generate a pronounced, this
balanced silhouette. it's the type of jeans
. Regarding the length, it ideal.
they can use above or for
below the ankle.
. The shoes that
I recommend for this type
the jeans are the ones that
they show in the following
image

. They are characterized by having . They favor

the end of the leg almost all types of
slightly more bodies and over
bell-shaped than the cut all to women
recto. of hips
. Lengthens the legs, stylizes pronounced.
and like the cut . If you are not very
recto, they generate a silhouette high, I recommend you
balanced. use this jean,
. To enhance the effect of but not very
lengthen your bell-shaped.

9
 legs, use them in
dark colors and avoid them
details (pockets, adornments,
etc.) in the area of the
hips and thighs, since
this will only add volume
to the hips.
. When used with
high heels will elongate your
figure, generating a
slimming effect.

. They are characterized by being . They favor

tight, they are narrow
the women of
from the hips to
the ankles. body
. The hips stand out, provided and to
thighs, calves and the
rear. those who wish
. They usually have the highlight their
low shooting, which is
suitable for women curves. It is also
with a flat abdomen, recommended for
otherwise, use the ones that
they have a higher waist low women
because they will help you to height.
shape your figure.
. In case of having hips
very pronounced, you
I recommend using those of
straight cut, since they could
create a disproportion
visual.

10
. They are characterized by having . Recommended
a different long, since for women of
they reach below the knee long legs. The
or halfway through the I don't know.

calf. recommend for

. They shorten the legs, so low women
that are not recommended height
for low women embargo on
height; however, in some cases the
in some cases, the tacos high tacos can
tall people can help. help.

. They are characterized by having . They favor the

the end of the leg women who have
bell ringing (opening the broadest shoulders

wide). The leg goes wider than the

expanding from the knee. hips.
. These pants provide
volume to the low part.
. The jeans must cover the
completely shoe or
show very little for
that they look good.
. Having so much volume in
the lower part is
recommended to use
wide heel shoes
to be proportional.
Wear flat shoes type

11
 flats will reduce your height.

. Baggy pants are trousers. . They favor the

with very wide legs and women who have
Boyfriend jeans are broad back and
male cut and size narrow hips.
low. . Not recommended
. Can help to hide for women of
the thighs and legs very short stature.
great.
. To tone down the style
male, must
combine with details
very feminine like
high heels, colors
brilliant large bags or
structured jackets.

Models of jeans for men

12
[Link]. FORMS OF PRESENTATION

[Link].1. DESIGN

In this sector of clothing, jeans pants make up the majority of the...

designers copy models from catalogs, magazines, brochures of models that
they are displayed in different showcases.

The design aspects that the manufacturer pays more attention to are:

Fashion
Elegance of design
Functional comfort
Details and decorations
Exclusivity
Variety of styles and colors

13
Labeling

31% of manufacturers still do not label their products.

[Link].3. Packaging

The most commonly used packaging for products is plastic bags, used by 54%.
of manufacturers, polyethylene bags are used by 41% and cardboard boxes 7% in
hangers 4% nylon bag 2% and other unspecified 1%

[Link].4 Promotion

Promotion form

Promotional prices
Catalogs
TV advertising

[Link].5 advertising

The most commonly used advertising formats are the following:

Radio advertising
TV advertising
newspapers
Flyers (pamphlets distributed on the streets)

[Link].6. Technology

The use of technology in the garment sector is limited as a consequence of

the scarcity of economic resources that according to the expression of the tailor is
it typifies as the lack of machinery and equipment however 98% of the machinery is
industrial and 2% non-industrial machinery.

The following table presents the brands of different clothing companies.

clothing offered in Santa Cruz.

14
 FRAME No. 2

VARIETY ORIGIN COMPANY LOCATION ORGANIZATION

/BRAND

Pants
Jeans
T-shirts
Shirts LEVIS
STRAUSS jackets Foreigner USA. LEVI'S STORES IN SANTA CRUZ

Pants
jeans
Shirts WRANGLER Foreign USA. WRANGLER ORIGINAL JEANS

Pants
jeans LEE Foreigner USA. VENTURA MALL

Pants
jeans USD JEANS Foreigner Colombia MUTUALIST MARKET

Pants
jeans
Shores
Bermuda PIT BULL
Blouses JEANS Foreigner Brazil PITBULL JEANS BOLIVIA

ZERO
GRADOS Pants
jeans JEANS Foreigner Colombia COMMERCIAL 7 STREETS

Pants
jeans
Shores
Dresses GUCCI Foreigner Italy GUCCI GLASS STORES

15
Costumes of
gala
men and
women
Skirts
Accessories
T-shirts
jackets

CONTEXBO Pants Santa Cruz Neighborhood the Olives

jeans L from the Mountain C/5 No 12 UNIPER-SONAL

Pants Santa Cruz Av. Busch 3

jeans FORNAX from the Mountain internal ring UNIPER-SONAL

Dresses
Shirts Street
GALO Pants Santa Cruz Independent.
Ties SANCHEZ from the Sierra Irala UNIPER-SONAL

pants
jeans Santa Cruz C/Florida Esq.
shores OVIO JEANS from the Sierra Libertad No.130 S.R.L

CLIMATE pants Santa Cruz Avenue San Aurelio

jeans JEANS from the mountain 4th ring UNIPER-SONAL

Pants [Link],
Shirts Santos Dumont, BARRIO FAIR, CUMAVI FAIR
T-shirts Fair Neighborhood Fair SAINT DUMONT,
accessories USED Foreigner Beautiful MARKETS OF THE CITY

16
2.5.1 ANALYSIS OF THE OFFER

2.5.2. CURRENT OFFER

The current offer of goods or services is similar to the historical offers studied.
previously. The good has its qualities such as being varieties, different
presentation methods, the factors of production are raw materials, inputs,
costs, there is a national and international offer. In the current market there are
improvements and innovations regarding the product, due to the level of understanding in the

production and the possibility of using different inputs (factors) for its
processing.

The bidders are large and small companies, both domestic and foreign,
There are entry and exit barriers in the textile sector market.

To complement the current offer, a questionnaire was applied with a survey in

the city of Santa Cruz de la Sierra, using U.A.G.R.M as a sample, being
the sample size is 155 people (n=155). From this information, it is observed that
variety of products available in the Santa Cruz market.

The best distribution channel for jeans is the markets in

all areas of Santa Cruz have the models that are most purchased.
the market is for classic and tight fits for men and classic and at the waist
for women, the age of highest consumption of jeans is between
from 15 to 25 years old.

2.5.3. Supply projection.

[Link]. Assumptions

There is greater availability of raw materials.

There is greater access to financing for microentrepreneurs.

Based on the previously described assumptions, it can be determined that the

The offer of clothing jeans will have a growing trend.

17
Due to the market conditions, easy access for the elaboration of
product.

2.6. DEMAND

The demand for a good and/or service is the quantity demanded of that good that the
buyers or consumers are willing to acquire and consume, in a period
of time given and according to the market structure.

Quantity of goods or services: it refers to a certain number of units that the

buyers would be willing to purchase or that have already been acquired.

Buyers or consumers: they are the people, companies, or organizations that

they acquire a certain product to satisfy their needs or desires.

Needs or wants: human demand is the state in which one feels

deprivation of some basic factors (food, security, sense of
belonging, estimation.

(Preparation of investment projects, 2017)

18
 CONSUMPTION
DEMAND CONSUMERS

DEDUCTION

USES USERS
C. DIRECT PERSONAS, FAMILY MEMBERS
C. INTERMEDIATE COMPANIES, INDUSTRIES
VARIABLE C. MIXED BOTH
S FOR COMPANIES AND/OR
EXPORTATION PERSONAS
C. FOR FBK
INDUSTRIES OF Bs. OF K

QUANTITATIVE
ANALYSIS QUALITATIVE O
S

OBJECTIVE USEFULNESS MAXIMIZE

O SARISFACTORIA LA

19
2.6.1. Historical Demand

One of the most commonly worn garments is the jeans, therefore it has taken
a great value within the market, since it is a piece of clothing that always
it will be in the wardrobe of many homes, this is because it is a diverse press
since due to their size, models, taste or preferences of the people, they are also
you can acquire in places as large as shopping malls, centers
popular ones or others and as manufacturers we should cover and satisfy the
customer needs.
Jeans are of direct and indirect consumption as they can be demanded.
directly by the final consumer or there can be an intermediary in between
producer and the final consumer; and consumers are individuals,
families, businesses, and industries that have different tastes, preferences, or perhaps
belong to different cultures that cause the quantity demanded to vary.
In addition, jeans are a widely used garment because they are
acquired across all socioeconomic levels and is also a comfortable garment
to wear and can be used for all ages.

The variables that influence demand behavior and that are going to

20
 to analyze is: stratification.

Economic Stratification of the Consumer

TABLE N°5
% Quantity of Amount of Income Income
Inhabitants Homes Stratum $us. My Bs.
Level A 1 23,000 4.600 2.529 17.704
Level B 3 69,000 13.800 1.183 8.280
Level 6 138,000 27,600 553 3.868
C1
Level 7 161000 32.200 526 3.683
C2
Level 13,299.000 59,800 414 2.901
C3
Level 23,529.000 105.800 251 1.756
D1
Level 33,759.00 151.800 188 1.313
D2
Level E 14,322.000 64.400 125 872
100 2,300,000 460,000
Source: Economic strata of the department of Santa Cruz 2014
Santa Cruz Chamber of Construction (CADECOCRUZ)

The quantity demanded for automotive maintenance services is

determined by the socioeconomic strata in which they are found
homes in the municipality of Santa Cruz de la Sierra, as it determines not only
the quantity demanded but also the frequency of use of this service.
According to data from CADECOCRUZ, 33% of the population of Santa Cruz
they consist of households with economic strata of level D2 with an estimated income
Bs 1,313 per month. This means that the demand for services of
maintenance such as lubricants, greases, and others is carried out by households with
this level of socioeconomic strata.

21
2.6.2. Current Demand

The current demand for the good or service is similar to the analyzed historical demand.
in the interior point. The good or service is for consumption: direct, indirect, or mixed and
the consumers and/or legal entities.

If there is any information this year or month about behavior of

some demand variable (quantitative or qualitative) should be incorporated into it
study referring to the source of information.

If there is any fact in the present year about any variable obtained through
direct observation or interview should be incorporated into the study by
reference the source.

To complete the study of current demand, reference must be made to the

results found with the application of a questionnaire through a
survey applied to people of different ages (from the city of Santa Cruz
from the Sierra). This survey was applied in the month of November between the 16th and 17th of

2017 people acquire this good directly (from the age of 15 in

forward), applying a probabilistic random sampling (types: sampling
probabilistic). Cluster probabilistic sampling. Due to its rapid execution and
lower cost of obtaining primary information.

To determine the sample size, probabilistic sampling was used.

a sample size of 388 elements was obtained (n=388 surveys)
taking 42% as a reference n=155 surveys. The questionnaire of the presents
survey and the detailed results are presented in the annex of this document
project. To obtain the results of this survey, the program was used
SPSS, and to analyze the relationship that exists between some variables, a cross-tabulation was performed.

of variables.

The results of this survey are: in a sample size (n=155) 55.5%

they are women and the rest are men. All the surveyed people use a
although it is a basic necessity, because people use it with

22
frequency. The highest usage percentage is among the ages of 21-25 years and the
What they use the most are women.

The most acquired items are the classic pants used by 32.9%,
of the surveyed people and with a purchase frequency of 45.2% and it is
used every three months. An apparent consumption of the asset should be estimated in
based on the results of the survey n=155.

The usage level between gender and style totals 52.3% of women who use it.
tubes (suckers).

The level of use between sex and consideration results in a total of 32.9% of women who
they consider the design.

The usage level between age and frequency totals 20% for ages 21 to 25.
purchase every 3 months.

Once the analysis of the survey results is completed, it must be done...

same as the primary information obtained, through interview, observation or
other documented information about the demand for intermediate consumer goods,
that is, information about the demand and consumers considered as
legal entity and also conduct an analysis of the current situation.

2.6.2. DEMAND FORECAST

[Link]. Assumptions of the demand

The demand for the product changes the increasing and decreasing variations in
relation to family incomes.

The tastes and preferences of consumers change according to the

last seasons how, a greater variety of styles and design in the market
internationally causing a greater import of clothing pants
jeans.

Based on this perception, the demand for the good is expected to be increasing.

23
2.7. BALANCE BETWEEN SUPPLY AND DEMAND

The basis of your estimate is the difference between the quantity demanded by the
consumers and the demand offered by the competitors of the project, once
projected these two variables. This balance allows us to perceive a trend
of the market in the future, that is, there will be a trend towards deficit (greater
demand), there will be a trend and the surplus (greater supply) or there will be a
tendency towards the equilibrium of goods in this market, this information will lead us
to have a optimistic perception of the analyzed market. This balance is
express the use of jeans in the municipality of
Santa Cruz de la Sierra has a growing trend regarding growth.
of the population, consumer income levels, tastes and preferences.

This indicates that the behavior of the demand will be increasing as well as the
offer.

2.8. PRICES

The price is the amount of money charged for a product or service. In

in broader terms, the price is the sum of the values that consumers
and in exchange for the benefits of having or using the product or service

2.8.1. Pricing Formation

We can set the prices based on demand when the demand

for a product, if its price is high, it tends to rise, while in situations of
the recession tends to decrease and all of this occurs, even if costs do not vary. In the case
Raising the price will decrease sales and vice versa.

Demand-based pricing methods aim to adapt the

prices to existing demand. The most common are:

Price discrimination: it consists of selling the same product at

different prices, depending on the customer's location or the time of year
that it is about.

24
 Experimentation: it consists of testing several over a period of time.
prices for the same product, in order to determine the recovery of
the same in the demand and set the most convenient for the objectives of
the company.
Intuition: it consists of setting prices based on the presumption of the
effects that they will have on demand.

2.9. MARKETING

Marketing is the set of actions aimed at marketing.

products, goods or services. These actions or activities are carried out by
organizations, companies and even social groups.

[Link]
[Link]

It is the exchange or 'Barter' that is applied when a person wants to acquire

a product and in return delivers a set amount of money.

[Link]

According toPhilip Kotler considered by some as the father of marketing

modern),3it is "the social process andadministrativeby which the groups e
individuals satisfy their needs by creating and exchanging goods and services.

2.9.1. Marketing Channels

It refers to the channel used to bring the product from the manufacturer or creator.
to the final consumer.

25
The following indirect and short channel will be used.

Producer Retailer Final Consumer

Indirect channels: when distribution agents are involved.

Short: when only one agent of distribution intervenes. Examples: Production
Wholesale-Consumer; Production-Retailer-Consumer.

CHAPTER III

LOCATION AND SIZE

3.1. LOCATION AND SIZE

26
 Analyze the possible locations to execute the implementation of the
fruit juice project in the municipality of Santa Cruz identifying and
selecting the best alternative for the location, in order to maximize
the net benefits of the project.

3.2 OBJECTIVE

Analyze and conduct an optimal study for the implementation of the project for
identify the optimal location and size of it, in the municipality of Santa
Cruz de la Sierra.

3.3. LOCATION

It involves analyzing different alternatives and choosing the best location for the
implementation of the new economic unit that is being studied, where the
net benefits generated shall be greater at the alternative site, that is,
maximize the benefits of the project through the production of goods and
minimize the costs related to its infrastructure.

The choice of the best site requires a process of successive approximations.

which can be distinguished in two stages: Macro-localization and Micro-
localization.

3.3.1. Macro-location

The macro localization is the selection of the country. The location has been set to
project in the Department of Santa Cruz, due to the fact that in recent years
It had an extraordinary population growth and because it is the main center.
commercial, financial, and industrial of the country that hosts the majority of the headquarters

of both national and international companies.

Department of Santa Cruz

Geographic Situation: having an area of 370,621 km2,

constituting 34% of the national territory, occupying the 1st place in
extension. It is located in the eastern region of the country.

27
 the eastern department is the most populated in Bolivia with
3,078,000 inhabitants, according to projections for 2016, of which 51.1% is
man and 48.9%, woman.

Climate: The warm and humid climate predominates in most of the territory.
from the department of Santa Cruz, with an annual average that fluctuates between
the temperatures range from 23 to 27 degrees Celsius and precipitation amounts to 1200 mm.

up to 1500 mm.

Basic Services: the cooperative that is responsible for supplying water

the municipality is SAGUAPAC. It is important to highlight that the quality of drinking water

has been awarded for its purity and high potability, as well as for its
innovative treatment system.
The electricity system is managed by the company COOPERATIVA CREE.
The fixed-line telephone service is managed by COTAS, which also offers the
broadband internet services and cable television.
The waste collection service of the municipality is in charge of
from the municipal urban sanitation company of Santa Cruz 'EMACRUZ' that
works with private subcontracted companies.

MICRO LOCALIZATION
It consists of selecting the precise location of the area where the installation will take place.

Sewing and tailoring workshop that will be defined by localization techniques,

which we will mention below.

At this point, the location alternatives will be evaluated to find that one
place that allows optimizing the investment and minimizing project costs.

28
Alternative 1

A plot of land located on the third ring Av. Noel Kempff Mercado, which has
all basic services, has an area of 300 square meters with a cost of 70
$ per square meter.

The main factors that have been included for the determination of the location and
The project's implementation has been: Availability of land, availability of
access road services, raw materials nearby, availability of labor, etc.

Alternative 2

A plot of land located in the 4th ring industrial park zone, which has all
the basic services, has an area of 400 square meters2at a cost of 65 $us
main factors that have influenced the determination of the location and
The implementation of the project has been: Availability of land, availability of
basic services and access roads, raw materials nearby, availability of labor
of work, etc.

3.3 LOCATION FACTORS

The size is the capacity to produce goods or services that can be

to have in a product for a certain period of time, is
conditioned by many factors such as being:

3.3.1 QUALITATIVE FACTORS

Raw Material.- It refers to having an appropriate area for
store the raw material or have it available immediately, and of
this way we can reduce costs.
Availability of land.-The land to be occupied in the
The project implementation is 300 Mts2This area allows for
proper storage of raw materials, also for the
ideal placement of product displays and different
equipment and tools to be used.

29
 Human Resources. -The availability of skilled labor and
not qualified that is in the implementation sector of the
project favors the project.
Basic services. -Refers to the availability of having energy
electricity, water, gas etc. It is one of the essential variables in
place where the project will be executed.
Access roads. - It refers to free and easy access.
the entry of any type of transport, or of human resources
that will be used when carrying out the execution of the project.
3.3.2 QUANTITATIVE FACTORS
Facilities. -They must meet the physical and technical requirements.
What are minimally necessary for the installation of the machines and
teams.

3.4 LOCALIZATION TECHNIQUES

Localization techniques are used with the aim of determining the factors
that have a greater impact or greater importance and relevance for the project in
study, both in its implementation phase and in its operational phase, is prepared
an analysis of different location alternatives that will guide the
research.

Among these techniques are:

Weighted Scores.
Maximization of net profits.
Quantitative point method.
Brown and Guison Method.
The localization technique used in the project is the Brown and Guison method.
because it considers a weighted evaluation, which will help choose between two
project location alternatives, each with an opportunity to
development.

30
This method transforms the objective measurement scales for the alternatives of
consideration in a grading between zero and one such that the sum of the
total scores add up to one, considering a scale from zero to five.

ANALYSIS OF LOCATION DECISION MAKING FOR THE PROJECT

(BROW GUISON METHOD)

FRAME #8

Characteristics of Location Alternatives

FACTORS ALTERNATIVE 1 ALTERNATIVE 2

OBJECTIVE VARIABLES:

Land Cost 146160 139200

Available area of 300 square meters 400 meters

Mts2.

SUBJECTIVE VARIABLES:

Strategic Location Very Good Good

Assignment of a grading scale for the analysis of decision making

location decision

Very Good = 5
Good equals 4

Regular = 3
Bad = 2
Awful = 1
ASSIGNMENT OF SCALES TO ALTERNATIVES

31
 FRAME #9

FACTORS ALTERNATIVE 1 ALTERNATIVE 2

VARIABLES
OBJECTIVES:

Land Cost Very Good Regular

Available area Good Good
in m².

VARIABLE
SUBJECTIVES:
Very Good Good
Strategic Location

SUMMATION OF GRADES

FACTORS ALTERNATIVE 1 ALTERNATIVE 2 TOTAL

OBJECTIVE VARIABLES:
5 3 8
Land Cost
4 4 8
Available area in
Mts2.
SUBJECTIVE VARIABLES:
5 3 8
Strategic Location

TOTAL 14 10 24

According to the results obtained through the analysis of the Brow method and
It is concluded that Alternative 1 (AV. Noel Kempf Mercado) is the most

32
suitable due to its strategic location as it is central supporting the
incoming logistics activities, operations, outgoing logistics and sales

3.5

It is the capacity of goods or services that the project can produce during a
determined period of operation.

The size of a project is measured by its ability to produce.

goods and/or services in relation to the unit of normal operating time
of the same; also being conditioned by factors such as: the demand
existing in the market, the availability of raw material, the machinery and
equipment to be used, the production costs incurred to obtain the
product and the required financing to install the company. These factors are
They interrelate with each other to design the size of the project.

3.5.1 FACTORS CONDITIONING SIZE

The capacity for the industrialization and commercialization of shirts to satisfy
the demand for the project is limited by the following factors:

Market.
The growth of the population in the middle class of the city of Santa Cruz
indicates that the project itself can generate high customer margins
product demanders in the market of Santa Cruz de la Sierra have a
total population 1,453,549 inhabitants according to INE data for the year 2012.

Financing.
It has been determined that for the execution of the project, it will be necessary to resort to

external financing approximately 50% of the total investment

required.

33
3.6 INSTALLED CAPACITY

The installed capacity that is planned in this project is based on the

market demand. The market defines the quantity to produce, the price, the
product offer and therefore also the plant's capacity, the square
show the maximum that can be produced in units

Installed capacity by year

TABLE # 11

Capacity Capacity capacity

installed installed installed
Detail Unit
(week) (month) (year)

Fabric cutter hours 72 288 3456

Overlock machine hours 72 288 3456
Fortuneteller 288
hours 72 3456
Button pusher
hours 72 288 3456
Machine of
sewing with stitching hours 72 288 3456
line
machine
ironer hours 72 288 3456

Total 432 1728 207378

3.6 CONCLUSION

34
According to the analysis carried out, considering the key factors
importance of how technology and the market project the required size
the implementation of the project is 300 m2, as well as the factory of
Jeans pants will be located at the 3rd ring Av. Noel Kempf Mercado and
it has all the basic services, with an installed production capacity
according to the market demand for jeans in the city of Santa
Cruz de la Sierra.

CHAPTER IV

35
 PROJECT ENGINEERING

4.1. OBJECTIVE:

Analyze the technical feasibility for the implementation of the new unit
economic, quantify the means and resources that are necessary for the
functioning of the project.

4.2. PRODUCT CHARACTERISTIC

They have similar characteristics to those that currently exist in the market,
which were previously analyzed in the offer, as having good durability,
a good cut and quality of the fabric, good stitching, variety in sizes, variety in
models, diversity in colors.

The presentation format of the product

The physical form of product presentation is solid.

4.3. TECHNOLOGY, SELECTION OF MACHINERY AND EQUIPMENT

There are different alternatives for making jeans.

elaboration is through the requirement of necessary inputs and machinery
for the manufacturing of the product and subsequently its distribution directly
or indirect to the final consumer

This process will be carried out using different machinery and equipment manipulating
the electrical energy, the equipment, machinery and materials and use are:

36
SUBJECT SUPPLIES MACHINE - TOOLS TOOLS
FIRST RIA FOR THE FOR THE
PROCESS FINAL PROCESS
INITIAL

Canvas Buttons Straight Inn Press

Taiwanese and
China Fabric
Big thread: Little rematches Plane Scissors Matrix
20.2 and 20.3
Hello Closures Overlock Pen Pistol
boy:40.2 Label maker

Label for Docking Station Rule Inn

presentation

Cardboard Cutter
Leather Elbow
Chalk Iron
Industrial
Bags Buckle
plastics
Cintas Pretinadora
Pickets
Pencils
Scissors

37
4.3.1. Description of the machinery

The following is the list of machinery:

Recta: It is the machine that performs a great

part of the production process being carried out
in these sewing operations of the
pockets, foot boot and other processes
intermediates, as it is also used in the
preparation of the smallest pieces.

TABLE 12

NAME Straight or Overlock Stitcher

MODEL Juki DDL 8700

CAPACITY 12 hrs/day (Continuous)
POWER 400 W

Stitching Speed 2850-3450 ppm

FUNCTION It is the machine that performs a large part
of the production process carrying out
in these sewing operations of
the pockets, feet boot and others
intermediate processes, as well as it is
used in the preparation of the pieces
smaller.
PRICE Bs. 2200

PLAN: This machine performs the joining of the simple flange along with the closure.
to the left forward and the union of the double fin together with the closure to the forward
right.

38
TABLE 13

NAME Industrial Plan

MODEL JUKI MH-380

CAPACITY 12 Hours/day (Continuous)

FUNCTION It is a machine that serves the function of

intertwine a top thread with a thread
inferior through a fabric doing
a straight stitch, is used in the field
from the tailoring to make seams
basic in most garments, it is
one of the most used machines in
this sector.

POWER 400 W

STITCHING SPEED 5000-6000 ppm

PRICE Bs 6120

39
CODE: Many operations are performed on this machine such as that of
sewn of the crotch, union of the inseam of the pants, the union of the reinforcement to
forward and also the connection between the front and rear pieces.

TABLE 14

NAME
Industrial sewing machine - Closer
From Codo

MODEL MS-1190

CAPACITY 12 Hrs/day (Continuous)

STITCHING SPEED 3500-4000 ppm

FUNCTION This machine is very efficient when it comes to

to handle extra heavy materials

like the 16-layer denim. Ideal for
sewing the interior of jeans, jackets and
work uniforms among others
materials.

POWER 500W

PRICE Bs. 14620

40
CLOSING MACHINE: This machine is used to close the pockets of the part
front, is also used in an intermediate process which is the joining of the
inseams of the pants.

TABLE 15

NAME Overlock or Overlocker

MODEL MO-6700

CAPACITY 12 hrs/day (Continuous)

POWER 500W

STITCH SPEED 7000-7500 ppm

FUNCTION This machine is used to close the

front pockets, it is also
used in an intermediate process that is
the seam of the pants' crotch.

PRICE Bs 4870

41
ATRACTOR: This machine is used for reinforcing the double fin.
pants, also reinforcing the pockets, reinforcing the
fasteners and all the parts that need to be reinforced.

SCHEDULE 16

NAME robber

MODEL LK-1900-A

CAPACITY 12 Hrs/day (Continuous)

FUNCTION The function that these machines perform is

claim openings, pockets, among others.

STITCHING SPEED 3000 ppm

ENERGY CONSUMPTION 500 W

PRICE 19480

42
FABRIC CUTTER:

This machine performs the operation of cutting the fabric,

this operation is decisive, once carried out it is
practically impossible to correct serious errors. For
scissors can be used to make the cut
conventional or cutting machines, among these
latest are: rotary blade machines, the
which are suitable for straight or curved cuts
gradual.

FRAME 17

NAME Fabric Cutter

MODEL GEMSY GEM85-8

CUTTING CAPACITY 25 cm

POWER 550W

FUNCTION This machine performs the cutting operation of the

Look, this operation is decisive, once it is carried out.
it is practically impossible to correct serious mistakes.

PRICE Bs 1530

43
PRETINER: Mechanical pre-tinning machine with cylindrical bed, with puller,
double transport, automatic lubrication and with chain stitch. This machine
It is designed to sew denim waistbands on open garments.

FRAME 18

NAME Pretinator

MODEL JUKI MH-1410

STITCHING SPEED 4000 ppm

CAPACITY 12 Hrs/day (Continuous)

POWER 400w

FUNCTION In its original form, it is arranged for

make four seams at once, the
the operation performed is to attach a waistband.

PRICE Bs 13900

44
INDUSTRIAL IRON: An iron is a
appliancealthough there are also irons
for industrial and commercial use, used in factories
of clothing anddry cleaners,what is used to straighten theclothes
removing wrinkles and marks.

TABLE 19

NAME Industrial Iron

MODEL NAOMOTO NT-94AL

MAXIMUM TEMPERATURE 270°C

POWER 800w

PRICE Bs 1300

45
4.4. DISTRIBUTION OF EQUIPMENT IN ENVIRONMENTS

The equipment required for the project phase will be analyzed.

implementation. For the selection of tools, equipment, and vehicles, we
It will proceed to the analysis and evaluation of technical, economic, and financial aspects.

Selection of Machinery and Equipment

FRAME # 19

MACHINERY REQUIRED FOR THE INSTALLATION OF A WORKSHOP

Manufacturing

MACHINERY OR EQUIPMENT QUANTITY YEARS OF LIFE

USEFUL

FABRIC CUTTER 1 8

STRAIGHT OR STITCHING MACHINE 9 8

PLAN 3 8

OVERLOCK OR CLOSER 3 8

Elbow Clamp 2 8

TRAPPER 1 8

Pretender 1 8

INDUSTRIAL IRON 3 8

46
To carry out the marketing and production of clothing pants
It is necessary to have the following furniture and utensils, which will be shown in
the following table.

FURNITURE AND UTENSILS REQUIREMENTS

FRAME #20

REQUIREMENTS FOR FURNITURE AND EQUIPMENT

FURNITURE AND UTENSILS QUANTITY YEARS OF

LIFETIME

CUTTING TABLE 2 5

COMPUTER 1 4

COMPUTER FURNITURE 1

ARCHIVERS 1 10

STATIONERY MATERIALS 1 3

wheelbarrow 1 10

Pickets 10 10

Management Desk 1 10

LABELING GUN 3 3
PRESS TO PLACE BUTTON AND 1 4
remachillo

MATRIX FOR BUTTON 1 4

MATRIX FOR RIVET 1 4

PLASTIC CHAIRS 12 10

47
4.5. REQUIREMENT OF FACTORS

The requirements of the factors are:

Raw material
Input
Human resources

HR Requirement: To be able to carry out production effectively

efficient and offer a high-quality product, the requirement for personnel is
express in the following box.
HUMAN RESOURCES REQUIREMENT
FRAME #21

DETAIL QUANTITY MONTHS

WORKED AT
YEAR

Design Operator and 2 12

Decorations

Cutting Operator 1 12
Mold

Sewing operator 10 12

General Manager 1 12

Operations Manager 1 12

Process supervisor 1 12
of the Process of
Production

48
 Carrier 1 12

Technical Service 1 12

Requirement of raw materials and supplies: It is necessary to identify the units of

measurement of the different factors of production to be used for manufacturing
of the jeans.

RAW MATERIAL AND SUPPLY REQUIREMENT

SQUARE #22

MATERIALS

Material Classic

large metallic button Unit 2 8 0.12

metal spikes Unit 4 12 0.05

size label Unit 1 1 0.02

cardboard brand label Unit 1 1 0.06

brand fabric label Unit 1 1 0.001

plastic bag 1 1 0.002

unit

denim fabric Mts 1.05 1.1 2.85

piecework labor Unit 1 1 0.8

embroidered thigh Unit 0 2 0.03

Washing Unit 1 1 1.2

49
4.6. PRODUCTION FLOWCHART

The flowchart is the graphical representation of the procedures that are carried out and
that will allow the development of the elaboration process.

The flow of operations for the manufacturing of jeans pants responds to

scheme presented below.

50
4.7. PRODUCTION PROGRAM

The production program refers to the quantities that will be produced in a

In a period of one year, operating 8 hours a day, 260 days a year, 9600 will be produced.
monthly units which 32.9% are Classic pants and 54.8%
fashion pants (with designs) and some that have no preference, consisting of
12.3%

Utilization capacity of the machinery in 3 years

· In the first year, 75% of the capacity will be used.

· In the second year, 85% of the capacity will be used.

· In the third year, 100% of the capacity will be used.

PRODUCTION PROGRAM FOR THE FIRST YEAR

UNIT OF MEASURE (UNITS)

Detail Weekly My Year

Classic Pants 32.9% 469 1922 2770

Fashion pants 54.8% 780 3201 4614

People who do not

they have preferences 12.3% 175 719 1035

Total 100% 1424 5842 8419

51
 SCHEDULE OF ACTIVITIES

The activity schedule consists of establishing predetermined times.

from the beginning of all activities related to the project to the implementation
total of it.

FRAME

MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6

ACTIVITIES 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
FINANCING MANAGEMENT
2. OFFICE SELECTION
3. QUOTATIONS
4. PURCHASE OF OFFICE DIVISIONS
5. OFFICE FACILITIES
6. PURCHASE OF EQUIPMENT AND INSTALLATIONS
7. SELECTION AND RECRUITMENT OF STAFF
8. STAFF TRAINING
9. PURCHASE OF OFFICE SUPPLIES
10. TEST OPERATION
11. MONITORING AND SUPERVISION
12. NORMAL OPERATION

52
 CHAPTER V

INVESTMENTS

5.1. INVESTMENTS

Analyze and quantify the investments for the implementation and startup of the
present project and create a schedule for the necessary replacement for the
assets.

5.1.1. TOTAL INVESTMENTS

Total investments are the values of the resources allocated for the
acquisition of capital goods, with which the project will operate during its
useful life. The project's investment is allocated to two types of investments, for
cover fixed investments and operating capital or working capital.

Investments for any type of project can be grouped into two types:
Fixed investment
Investment in working capital

5.1.2. FIXED INVERSION

The fixed investment is that which will be the fixed asset of an economic unit.
service and are not subject to continuous or usual transactions during the useful life
of the project, until they are completely deprecated or sold by different
reasons such as: improvement of technology, or change of business location.

[Link]. TANGIBLE FIXED ASSETS

It is characterized by its materiality and is mostly subject to the
depreciation either due to wear or obsolescence.

[Link]. INTANGIBLE FIXED ASSETS

It is characterized by its immateriality, they are services and acquired rights and like
such things are not subject to physical wear.

53
5.2. OPERATING CAPITAL

It is the set of project resources needed as current assets for the

normal operation during a production cycle for a utilized capacity and for
a given size.

TOTAL INVESTMENTS
(Expressed in Bs)
DETAIL Observe Unit Cantid Pick Up TOTAL
vacuum ad
n
FIXED INVESTMENTS
I.- TANGIBLE ASSETS
Land s/f mt2 300 70 21000
Total Land 21000
2. Civil Works
Production Area
Loading and unloading area c/f mt2 30 626 18780
Raw material warehouse and c/f mt2 80 626 50080
input
Design and Cutting Workshop c/f mt2 40 626 25040
Sewing workshop c/f mt2 100 626 62600
Bathrooms and shower c/f mt2 10 626 6260
Administration area
office c/f mt2 40 626 25040
Total Civil Works 300 187800
3. Machinery and Equipment.
Fabric cutter c/f Unit 1 1530 1530
Sewing machine with stitching c/f Unit 9 2200 19800
straight
Robber c/f Unit 1 1948 19480
0
Pre tinadora c/f Unit 2 1390 27800
0
Industrial iron c/f Unit 3 1300 3900
Elbow closer c/f Unit 2 1462 29240
0
Plan c/f Unit 3 6120 18360
Closer c/f Unit 3 4870 14610
Total Machinery and Equipment 134720

54
 4. Equipment and furniture
Vehicles c/f Unit 1 9048 90480
0
Computer c/f Unit 1 2000 2000
Computer furniture c/f Unit 1 300 300
Archiver c/f Unit 1 51 51
Office supplies c/f Unit 5 380 1900
Wheelbarrow c/f Unit 1 350 350
Pickets c/f Unity 10 2 20
Management desk c/f Unit 1 200 200
Labeling gun c/f Unit 3 5 15
Press for button placement and c/f Unit 1 130 130
little rematch
Matrix for button c/f Unit 1 4 4
Matrix for rivet c/f Unit 1 5 5
Cutting table c/f Unit 2 100 200
Chairs c/f Unit 12 50 600
Scissors c/f Unit 10 30 300
Total Equipment and furniture 96555
Total supplies Investments 565175
Tangibles
II.- INTANGIBLE ASSETS
Feasibility Studies c/f Global 1 1462 1462
Organization expenses c/f Global 1 2300 2300
Assembly and Installation of c/f Global 1 5000 5000
machinery
Total supplies Investments 8762
Intangibles
Total Fixed Investments 573937
TOTAL INVESTMENTS 764502
Total Inv. with invoice 603402

5.3 STRUCTURE OF INVESTMENTS.

The jeans manufacturing project will be financed with 40% of
own contributions and 60% will be financed by a financial institution, with which
it will cover the total investments required for the project.
The following table will show how the investments will be structured both own
as funded by third parties.

55
 INVESTMENT STRUCTURE
(Expressed in Bs)

DETAIL TOTAL CREDIT CONTRIBUTION

OWN LP

Land 21000 21000

2. Civil Works

Loading and unloading area 18780 18780

Raw material warehouse and
supplies 50080 50080

Design and Cutting Workshop 25040 25040

Sewing workshop 62600 62600

Baths and showers 6260 6260

Office 25040 25040

3. Machinery and Equipment.

Fabric cutter 1530 1530

Sewing machine with
straight stitch 19800 19800

Robber 19480 19480

Pretender 27800 27800

Industrial iron 3900 3900

Elbow lock 29240 29240

56
 Plane 18360 18360

Closing device 14610 14610

4. Equipment and Furniture

Vehicles 90480 90480

Computer 2000 2000

Computer furniture 300 300

Archiver 10 41 51

Office Supplies 1900 1900

Wheelbarrow 350 350

Pickets 20 20

Management desk 200 200

Labeling gun 15 15
Button press and
small rematch 130 130

Matrix for button 4 4

Matrix for rivet 5 5

Cutting table 200 200

Chair 600 600

Scissors 300 300

57
 INTANGIBLES

Feasibility Studies 1462 1462

Organizational expenses 2300 2300

Assemblies and installation of
maq. 5000 5000
CAPITAL OF
OPERATIONS

Raw Material (Fabric) 141565 141565

Supplies 10000 10000

Salaries and Wages 15000 15000

Maintenance 2000 2000

Other Materials 20000 20000

Basic Services 2000 2000

TOTAL INVESTMENTS 297400.8 446101.2 743502

Inv. In % 40 60 100

5.4 SCHEDULE OF INVESTMENTS AND REPLACEMENT OF

TANGIBLE INVESTMENTS.
The investment schedule represents a plan by unit of time, in which
the investment and replacement of assets is shown over 10 years according
to its useful life. The replacement of investments is based on the useful life of each
asset, which is determined by its depreciation, number of hours of use, image
corporate, economic and technological replacement.
The following table shows the operation of the planned investments for
the next 10 years, from the start of the project's operations.

58
 SCHEDULE OF INVESTMENTS AND REPLACEMENT OF
TANGIBLE INVESTMENTS

5.5 CONCLUSION:
In this chapter, it is concluded that 40% of the 100% investment corresponds to the
own contribution (Bs. 297400.8) and 60% (446101.2) will be financed by a line of
long-term credit. The replacements of the assets, whether tangible, will be made.
and intangibles whenever required during the project implementation.

59
 CHAPTER VI
FINANCING

6.1. OBJECTIVE
The objective of this chapter is to analyze the different alternatives of
external financing that exists, to implement the present project to
same time taking the best financing alternative for achieving the
company objectives

6.2 FINANCING - DEFINITION

Financing is an activity through which financial resources are obtained.
and real ones for the implementation of a productive activity whether of goods and/or
services. The project uses this medium for implementation and startup
the activities inherent to it
Internal sources
These are the own contributions of the partners or investors of the project estimated at
an amount of Bs. 297400.8- which represents 40% of the total investment
External sources
They are the resources that cannot be covered by internal sources and are obtained
from third parties such as banking institutions, commercial entities, or credit institutions
promotional. Therefore, for the requirement of external financing of
the project will evaluate the characteristics of the credit that the entities offer with
the goal of using the best alternative when minimizing costs
The amount will be Bs 446,101.2, which represents 60% of the total investment.

6.3 CHARACTERISTICS OF CREDIT

Credit is an instrument that allows financing part or all of a
investment project, these credits can be short, medium, and long term and
they can be intended to cover the working capital or the investment
The credits come from different financial institutions and can be
channeled through commercial banks and development financial organizations.
The main characteristics to be evaluated of the credits will be
Credit amount
Interest rate
Payment deadline
Grace periods
Type of amortization
Payment methods
Mortgage guarantee

60
6.4 FINANCING ALTERNATIVES
They are the different alternatives for external financing that the project has for
obtain the necessary capital for the total initial investment. The details will be provided
long-term credit options from various local financial entities. For
long-term credit has the following alternatives

FINANCING ALTERNATIVES 1

BANK UNION

Amount 446101.2.-

Currency Bs

Type of credit Amortizable loan

Interest rate 12%

Grace period 0 years

Payment method Semester

Deadline 10 years

FINANCING ALTERNATIVE 2

SANTA CRUZ MERCHANT BANK

Amount 446101.2.-
Currency Bs
Type of credit Amortizing loan
Interest rate 14%
Grace period 0 years
Payment method Semester

61
 Deadline 10 years

6.5 PROJECT FINANCING STRUCTURE

It is the combination of different funding sources and the proportion of
debt–equity of the total investment. To define the structure of
financing it is necessary to know the conditions of the different sources of
financing

CONTRIBUTION
DETAIL OWN C.L.P. TOTAL

FIXED INVESTMENTS

Intangible Assets 106474 333601 440075

Intangible Assets 8762 8762
Subtotal 115236 333601 448837

Total capital of
operations 190565 190565
Total investments 377641.2 255760.8 633402

Percentage 40% 60% 100%

The financing structure shows the value of the own contribution of the
investors of the project and explain where the credit will be obtained from
operating capital.

62
6.6 CHARACTERISTICS OF CREDIT
The following table shows the characteristics of the credits from different
entities:

Entity Debt(Bs) Period of

financial of payment of amortization
interest (years) thank you

Union Bank 255760.8 12% 10 - Semester

Bank
Commercial
Santa Cruz 255760.8 14% 10 - Semester

6.7 CREDIT OBLIGATIONS

Credit obligations are all the demands made by the entities.
from which external financing is obtained
The summary table of financial obligations is the sum of the
amortizations and interests of the different credits assumed by the project.
This allows differentiating between the total amortizations by periods of time,
that affects cash flow (liquidity) and the payment of interest, which affects the state of
project results

63
 UNION BANK
LONG-TERM CREDIT OBLIGATIONS
(Expressed in Bs)

year sem credit interest amortization

1 255.760 14.206 20.461
1 2 255.706 14.206 20.456
3 255.706 14.206 20.456
2 4 241.500 14.206 19.320
5 227.294 14.206 18.184
3 6 213.088 14.206 17.047
7 198.882 14.206 15.911
4 8 184.677 14.206 14.774
9 170.471 14.206 13.638
5 10 156.265 14.206 12.501
11 142.059 14.206 11.365
6 12 127.853 14.206 10.228
13 113.647 14.206 9.092
7 14 99.441 14.206 7.955
15 85.235 14.206 6.819
8 16 71.029 14.206 5.682
17 56.824 14.206 4.546
9 18 42.618 14.206 3.409
19 28.412 14.206 2.273
10 20 14.206 14.206 1.136

SUMMARY OF FINANCIAL OBLIGATIONS

(Expressed in Bs)

Union Bank

YEAR FEE
TOTAL

1 14.206 20.456 79983

2 14.206 19.320 79983

64
 3 14.206 15.911 79983
4 14.206 13.638 79983
5 14.206 11.365 79983
6 14.206 33981 79983
7 14.206 9.092 79983
8 14.206 4.546 79983
9 14.206 2.273 79983
10 14.206 1.136 79983

6.8 CONCLUSIONS
The financing of the project will be executed through internal sources and
third-party contributions, the credit from Banco Unión will be chosen, which offers a rate
with an interest rate of 12% amortizable biannually.

65
 CHAPTER VII
STATEMENTS OF RESULTS

7.1 OBJECTIVES.
The objective of this chapter is to make a projection of revenues and costs.
what the project will have in its operational phase and to know its status of
Result, in order to determine both the profits and the losses at the stage
of operation.
7.2. INCOME.
It is the quantification of the monetary units generated by the project for the
jeans sales produced in the year, based on the production program already
established.
7.2.1 GROSS INCOME
Gross income is calculated using the selling price of pants then
having created the cost structure and establishing a margin of
contribution to the company that people are willing to pay for
market. The set price for the pants is as follows:

FIRST YEAR SALES FORECAST

PERIOD JULIO AUGUST SEPTEMBER NOVEMBER DECEMBER
Unit price 60,000 60,000 60,000 60,000 60,000 60,000
monthly sales 585,000 819,000 936,000 1,047,000 1571,000 2,618,000
monthly sales 35100,000 49140,000 56160,000 62820,000 94260,000 157080,000
% 5.25% 9.4% 14.10% 23.5%
PERIOD JANUARY FEBRUARY MARCH APRIL MAY JUNE
Unit price 60,000 60,000 60,000 60,000 60,000 60,000
monthly sales 490,000 858,000 1,103,000 279,000 446,000 390,000
monthly sales 29400000 66180,000 16740,000 26760,000 23,400,000
% 4.4% 7.7% 9.9% 2.5% 4%

66
 Detail Price Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Production 70100 90960 118007 141608 169930 203916 244699 293639 352367 422840
Pants
Classic 38.86 1634452 2120823 2751451 3301741 3962090 4754508 5705409 6846491 8215789 9858947
Pants
Fashion 45 1261800 1637280 2124126 2548951 3058741 3670490 4404588 5285505 6342606 7611127
Income
Gross 2896252 3758103 4875577 5850693 7020831 8424997 10109997 12131996 14558396 17470075

7.2.2 NET INCOME

To obtain the net income of the project, legal taxes must be deducted.
respective (VAT, IT), therefore, before making this calculation, it will be carried out

previously the calculation of the taxes and then the net income will be presented
of the project.

7.3 TAXES
The taxes for the project's operational horizon must be carried out.
under the current tax legislation. The following taxes will be considered:

VALUE ADDED TAX (VAT)

Invoiced purchases generate a tax credit, while income
total billed the VAT is withheld, generating a tax debit, the difference gives a
balance in favor or against the treasury.

Its fiscal period is monthly and the current rate is 13%.

TRANSACTION TAX (IT)

It applies to the total income from the invoiced sale of the products, the rate
The rate is 3% and its fiscal period is monthly.

CORPORATE INCOME TAX (IUE)

Reflects on the gross profits resulting from the financial statements and its
The tax rate is 25%, and its fiscal period is annual.

67
 CALCULATION OF TAXES
(Expressed in Bs)

Detail Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
VAT
A) Debt
Fiscal 13%
Income
Gross 2896252 3758103 4875577 5850693 7020831 8424997 10109997 12131996 14558396 17470075
Total
Debt
Fiscal 376513 488553 633825 760590 912708 1095250 1314300 1577160 1892591 2271110
B) Credit
Fiscal
1.
Investments
Totals 764502
2.
Replacement
of Inv.
Tangibles 2694 90480 134850 3251
3. Costs
Totals 2206912 2828352 3634678 4337355 5180884 6193478 7408989 8868055 10619440 12721672
TOTAL
COMP
(C/F) 764502 2206912 2828352 3634678 4340049 5271364 6193478 7408989 9002905 10619440 12724923
Credit
Total Fiscal 99385 286899 367686 472508 564206 685277 805152 963169 1170378 1380527 1654240
VAT to Pay -89614 -120868 -161317 -196384 -227431 -290098 -351131 -406782 -512064 -616870
2.-IT 3% 86888 112743 146267 175521 210625 252750 303300 363960 436752 524102
Tax on
Pay (VAT +
IT) -2727 -8125 -15050 -20863 -16806 -37348 -47831 -42822 -75312 -92768
2727 8125 15050 20863 16806 37348 47831 42822 75312 0

68
 Projection of Gross Income
(Expressed in Bs)

Year
0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Detail
1. Income
Brutes 0 2896252 3758103 4875577 5850693 7020831 8424997 10109997 12131996 14558396 17470075

(-)
TAXES
(VAT+IT) 0 -2727 -8125 -15050 -20863 -16806 -37348 -47831 -42822 -75312 -92768

Income
Netos (IUE) 0 2893525 3749979 4860528 5829830 7004025 8387650 10062166 12089174 14483083 17377307

This chart shows the net income for 10 years, which increases each year.
last year, due to the increasing trend shown by the demand therefore
This behavior generates greater benefits for the company.
7.4 COSTS
Costs are defined as any disbursement that the company must incur.
project for the acquisition of goods and services to be used during a
fixed term.
For the start-up of the project, costs are classified by their viability as:
VARIABLE COSTS
They are those that tend to fluctuate in proportion to the total volume of sales.
articles or provision of a service, for example, direct raw material labor
for direct work when paid per piece, income taxes, commissions
about sale.
FIXED COSTS
They are those that remain constant for any level of utilization of the
installed capacity such as salaries, services to the debt.

HUMAN RESOURCES

69
At this point, labor will be considered in its entirety as a fixed cost.
Why is it proposed to have permanent staff? This explains the amounts allocated.
to meet the needs of the staff.
According to pension law N# 1732, every employer who has
Workers, in addition to paying a salary or wage, are legally required to pay
social benefits that represent a cost for the company such as Christmas bonus
and compensation.
7.5 DEPRECIATION
The depreciation method that will be used in the project is the straight-line method, the
which allows for a total distribution of depreciation in equal parts to
throughout all the useful life periods of a particular asset.
Its formula is as follows: =( − )/
Where:
D: annual depreciation
C: costs
VR: residual value or waste
N: useful life years of the asset

DEPRECIATION OF FIXED ASSETS

(Expressed in Bs)

Value
Useful Life Depreciation
Detail Original Value Residual
Years Annual
to Year 10
Machinery 298205 8 18281 116332
Furniture and
Encouragement 26490 82 891 18780
Vehicle 90480 10 9048 0
Computer 2000 4 500 0
28720 135112

For the depreciation of assets, the straight-line method is used which

it shows that the annual depreciation is 28720 Bs and the salvage value is
135112

70
 COST PROJECTION
TOTALS
(Expressed in Bs)

Material/ (Obs
Years ) Price Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
COSTS
VARIABLES
button
big
metallic CF 0.8352 58548 75969.79 98559.4 118271 141926 170310.7 204372.87 245247.4 294296.9 353156.3
tacks
stockings of
metal CF 0.348 24395 31654 41066 49280 59136 70963 85155 102186 122624 147148
tall label CF 0.1392 9758 12662 16427 19712 23654 28385 34062 40875 49049 58859
label of
brand of
cardboard CF 0.4176 29274 37985 49280 59136 70963 85155 102186 122624 147148 176578
label of
fabric of
brand CF 0.00696 488 633 821 986 1183 1419 1703 2044 2452 2943
bag
plastic CF 0.01392 976 1266 1643 1971 2365 2839 3406 4087 4905 5886
the fabric of CF 19.836 1390504 1804283 2340787 2808944 3370733 4044880 4853856 5824627 6989552 8387463
hand of
work
piece rate SF 5.568 390317 506465 657063 788476 946171 1135405 1362486 1634983 1961980 2354375
Washing CF 8.352 585475 759698 985594 1182713 1419256 1703107 2043729 2452474 2942969 3531563
TOTAL OF
COSTS
VARIABLE
S 2489733 3230615 4191240 5029489 6035386 7242464 8690956 10429147 12514977 15017972
II. COSTS
FIXED
HR of
Adm SF 183312 183312 183312 183312 183312 183312 183312 183312 183312
service
basic CF 20565 20565 20565 20565 20565 20565 20565 20565 20565 20565
Material of
Desk CF 1900 1900 1900 1900 1900 1900 1900 1900 1900 1900
Unforeseen CF 28697 28697 28697 28697 28697 28697 28697 28697 28697 28697
amortiz.
Deferred
investment
intangible
divide it into
5 or 6 SF 26652 29946 33647 37806 42479 47729 53628 60257 67704 76073
interests SF 56334 53040 49339 45180 40507 35257 29357 22729 15281 6913
Depreciation
ones SF 28720 28720 28720 28720 28720 28720 28720 28720 28720 28720
sure
risk
professor. SF 3135 3135 3135 3135 3135 3135 3135 3135 3135 3135
TOTAL
COSTS
FIXED 349314 349314 349314 349314 349314 349314 349313 349314 349313 349314
TOTAL
COSTS 2839047 3579930 4540555 5378803 6384700 7591778 9040269 10778462 12864290 15367286
TOTAL
COST C/F 2206912 2828352 3634678 4337355 5180884 6193478 7408989 8868055 10619440 12721672

71
 PROJECTION OF TOTAL REVENUES AND COSTS
(Expressed in Bs)

DETAIL
Years 1 2 3 4 5 6 7 8 9 10
NET INCOME
AIUE 2893525 3749979 4860528 5829830 7004025 8387650 10062166 12089174 14483083 17377307
COSTS
COSTS
VARIABLES 2489733 3230615 4191240 5029489 6035386 7242464 8690956 10429147 12514977 15017972
FIXED COSTS 349314 349314 349314 349314 349314 349314 349313 349314 349313 349314
TOTAL COSTS
(CF+CV) 2839047 3579930 4540555 5378803 6384700 7591778 9040269 10778462 12864290 15367286
UTILITY OR
LOST AIUE 54478 170049 319973 451027 619325 795872 1021896 1310713 1618793 2010021
IUE 25% 13619 42512 79993 112757 154831 198968 255474 327678 404698 502505
NET INCOME
The Lost 40858 127537 239980 338270 464494 596904 766422 983035 1214095 1507515

7.6 CONCLUSION.
In this chapter, an evaluation of the revenues and costs has been made.
which will be incurred for the implementation of the sewing project and
marketing of jeans, this is profitable as per the projection
In 10 years, revenues will be greater than costs.

72
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