Feasibility of Opening A Four-Year Ladderized ICT Course for the Out-of-School Youths and Adults in Barangay Tablon, Cagayan de Oro City
Submitted to DR. RICARDO E. ROTORAS For DEM 611 – Quantitative Approaches to Management Mindanao University of Science and Technology
Submitted by RAY BUTCH D. MAHINAY Ph.D. in Educational Planning and Management 1 School Year 2010-2011
INTRODUCTION The advent of Information and Communications Technology (ICT) and the global village has made it imperative for children, youth and adults today to gain access to information through various means. This requires learners to develop skills in ICT to keep in step with the rest of the world. The changes brought about by shifting national development goals as well as emerging needs and demands of a high-wired society, technological advances and various forms of transformation requires that everyone strive for a well-rounded and relevant education. In the National Statistics Office-Region X website, it has been recorded in 2008 that the majority (or 38%) of the TVET enrollees are with the ICT-related courses. It must sound good for a country aiming for technological advancement that many has the interest to ICT. Apparently though, the mushrooming of computer schools is not a guarantee that everybody has the access to ICT training considering its high tuition costs. It is in the Philippine Education for All (EFA) 2015 National Action Plan that there should be universal coverage of out-of-school youths and adults (OSYAs) in the provision of learning needs. Acknowledging that ICT skills are basic nowadays, this calls for an action to bring these people back to the classroom setting where they will experience fundamental computer training. If the 41,945 barangays in our country will work for this cause, the EFA National Action Plan is attainable. RA 7160 or the Local Government Code of 1991 can give a legal ground as it states that “subject to availability of funds and to existing laws, rules and regulations the LGU shall establish and provide for the operation of vocational and technological schools and similar post-secondary institutions…” It is seen that if every Filipino is skilled, it provides the formula for economic success as a nation. Hence, it is proposed that there will be an offering of a four-year ladderized ICT course for the OSYAs in Barangay Tablon, Cagayan de Oro City through its local government. Capsule details of its system and feasibility are presented herein.
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OBJECTIVES OF THE STUDY The main objective of this study is to determine the technical and financial feasibility of offering a four-year ladderized ICT course for OSYAs in Barangay Tablon, Cagayan de Oro City. Specifically, this study aims the following: 1. To assess the technical considerations of the course offering which includes the (a) possible enrollment; (b) training site and facilities; (c) administration and management; (d) curriculum; and (e) trainors. 2. To evaluate the financial aspects of the project such that it will be affordable to the OSYAs and self-sustaining in its long-term implementation.
CONCEPTUAL DESIGN
LOCAL GOVERNMENT UNIT OF BARANGAY TABLON
COURSE OFFERING ON 4-
(RA 7160)
YEAR LADDERIZED ICT COURSE PC OPERATIONS NC II COMPUTER HARDWARE
TABLON NATIONAL HIGH
SERVICING NC II
SCHOOL (TRAINING CENTER)
Figure 1. Schema for the feasibility study showing the collaboration of LGU-Tablon and Tablon NHS in offering a 4-year ladderized ICT course in the barangay. 3
RESEARCH DESIGN This feasibility study employed qualitative and quantitative methods. The qualitative method dwelt on the unstructured interaction of the researcher to the different offices (i.e. Tablon-LGU, DepEd, TESDA) which establishes the concept and legal frameworks. The quantitative part was used to gather and analyze necessary data such as enrollment possibility and the financial viability of the project.
LOCALE OF THE PROJECT Tablon is located 10.8 km east of Cagayan de Oro City. It is the largest barangay of the city consisting of 15 puroks. The barangay has a land area of 43,810, 130 sq.m. which represents 8% of the total land area of Cagayan de Oro City. As of 2003 SRA-MBN census, there are 3,502 households in the barangay. Tablon has 11 learning institutions for early child development, 9 of which are public and 2 are private. It also has 3 public schools which offer complete elementary education, namely: Tablon ES, Linangohan ES and Palalan ES, and 1 high school, Tablon NHS. Tablon NHS will serve as the training center of the 4-year ladderized ICT course.
DATA GATHERING PROCEDURE First step taken by the researcher was interviewing different officials to ask for the possibility of the project with keen consideration to its legalities. With a go-signal from these officials, the next move was conducting a survey within the barangay premises. The survey form consists of mere five items only. The survey forms were distributed to the academic institutions, LGU-Tablon, NGOs, and other local stakeholders.
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With the retrieval of the survey forms, financial analyses were initiated. Based on the responses, a possible number of enrollees were calculated. Knowing the enrolment in turns determines the expected cost and expected income of the project. Moreover in the financial analysis, the following must be found out: 1. Unit cost per trainee 2. Variable cost per trainee 3. Breakeven quantity and revenue 4. Net present value as an investment evaluation 5. Payback period
KEY ASSUMPTIONS AND FINDINGS On the Interaction with Officials 1. The Barangay Captain in the person of Honorable Romeo R. Bacarro is supportive to the noble aims of the project. 2. LGU-Tablon is willing to cover initial costs when the findings of this feasibility study is good and with the understanding that the project in the long run will be self-sustaining. 3. The principal of Tablon NHS is likewise eager to cooperate with the project. 4. Tablon NHS has an ICT Lab and two ICT coordinators, Mr. Ray Butch D. Mahinay and Mrs. Christine D. Babida. With the recommendation of the school principal, these coordinators will be the trainers for this project’s 4-year ladderized ICT course. 5. The curriculum to use will be drafted by the ICT coordinators and will be approved by the LGU-Tablon and TESDA. 6. Coordination to TESDA will be done by the ICT coordinators for the NC issuance matters.
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On the Survey 7. More than 100 survey forms were distributed and the percentage of retrieval is 75%. 8. The results of the survey are summed up on Table 1.
Table 1. Summary of Survey Results Item
Yes
No
f
%
f
%
Do you have plans of taking up computer course?
57
76%
18
24%
Would you enroll to a computer course if it is partly sponsored by the Barangay Tablon Council?
62
83%
13
17%
Would you enroll if the training center will be at Tablon NHS-ICT laboratory?
52
69%
23
31%
What are your chances to enroll on the course if it will be offered on SY 2011-2012? - 100% that I will enroll - 75% that I will enroll - 50% that I will enroll - 25% that I will enroll
31 15 10 6
50% 24% 16% 10%
72
96%
3
4%
Would you recommend this to your neighborhood as an opportunity of learning?
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TECHNICAL OUTLINE Computer Facilities Tablon NHS has 11 functional computers acquired through the project of Department of Trade and Industry (DTI) which is the Personal Computers for Public Schools - Phase 3. Some of the specifications of the computers include: operating system is Windows XP, has CD-ROM component and complete accessories like keyboard, mouse and speakers. The computers are four years old already from the time it was properly received. Computer maintenance is limited due to the school’s budgetary constraints so the ICT coordinators shared that prior to the implementation of the project, the computers’ defective parts must be fixed.
Internet Connection Through DepEd Order No. 50, the DepEd Internet Connectivity Project (DICP) made almost all public secondary schools wired to the internet. Tablon NHS has Globe Telecom as its internet service provider (ISP). There are area in the campus that are wi-fi spots such as the ICT Lab, TLE Lab, Faculty Office and Principal’s Office. ICT Trainers’ Profile The following are the trainers of the 4-year ladderized ICT course: 1. Ray Butch D. Mahinay, MASE
Doctor of Philosophy in Educational Planning and Management (PhD EPM) – currently pursuing, Mindanao University of Science and Technology
Master of Arts in Science Education (MASE), Bukidnon State University-Main Campus
With ICT training in the national, regional and divisional levels
School Rank: Teacher III
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2. Christine D. Babida
Master of Technician Teacher Education (MTTE) – currently pursuing, Mindanao University of Science and Technology
With ICT training in the national, regional and divisional levels
School Rank: Teacher I
3. Sidney D. Badiang, CoE
Bachelor of Science in Computer Engineering, Mindanao University of Science and Technology
Affiliated with UCBP as head computer engineer
Has wide exposure in computer programming and computer hardware maintenance
Organization The organization of the project is headed by the LGU-Tablon which will have direct connection with Tablon NHS as its project implementer. These two offices will coordinate with DepEd, CHED and TESDA. Figure 2 shows the organization chart of the project.
CHED
TESDA
LGU-Tablon
Tablon NHS
DepEd
ICT Coordinators / Trainers
OSYAs / Trainees
Figure 2. The organizational chart showing the hierarchy of responsibilities and flow of coordination and affairs.
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Curriculum The curriculum to be used is patterned after the DepEd’s TLE-Career Pathways structure. For every year, there are corresponding skills to be developed. Within four years, there will be a total of 12 skills acquired that includes entrepreneurship development. After years 1 and 3, the trainee is qualified to take two exams for him to get two national certificates (level II) respectively. In Figure 3, the curriculum is presented with the methodical arrangement of the skills and their equivalent career being ladderized in nature.
Figure 3. The structure of the curriculum with the skills and their equivalent career that a trainee can opt to do after series of ICT courses is shown systematically. This is to show the benefit of ladderized training. 9
Class Schedule Since the project is collaborated with Tablon NHS which has its own class program, the ICT training schedule will fall on schedules where there are no classes for the high school students. There can only be three options: (1) every 5-6 PM of Monday to Friday; (2) 7 AM-12 NN of Saturdays; and (3) 1-6 PM of Saturdays.
FINANCIAL ANALYSIS Course Fees Since this is a barangay project, there is subsidy in the fees so the trainees are not so burdened financially. Also, the subsidy in the course fees can ensure sustainability to the trainee’s end. For every skill, the rate per student will be Php 1000.00. Twenty-five percent (or Php 250.00) will be subsidized by the LGU-Tablon. Table 2. Course fees in the 4 year levels per trainee.
Year Level
First Year
Second Year
Third Year
Skill
Rate per Skill
●PC Operations ●Word Processing ●Spreadsheet ●Presentation Total, Year 1 ●Photo Editing ●Desktop Publishing ●Internet and Email Total, Year 2 ●Basic Webpage Design ●Basic Programming ●Basic Data Management ●Computer Assembly, Maintenance and
Php 1000 Php 1000 Php 1000 Php 1000 Php 4000 Php 1000
Subsidy from the LGUTablon Php 250 Php 250 Php 250 Php 250 Php 1000 Php 250
Php 1000
Php 250
Php 750
Php 1000
Php 250
Php 750
Php 3000
Php 750
Php 2250
Php 1000
Php 250
Php 750
Php 1000
Php 250
Php 750
Php 1000
Php 250
Php 750
Php 1000
Php 250
Php 750
Rate to be paid by the trainees Php 750 Php 750 Php 750 Php 750 Php 3000 Php 750
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Troubleshooting
Fourth Year
Total, Year 3 ●Entrepreneurship Development Total, Year 4 Grand Total
Php 4000
Php 1000
Php 3000
Php 1000
Php 250
Php 750
Php 1000 Php 12000
Php 250 Php 3000
Php 750 Php 9000
Number of Enrollees Uniform probability distribution was used to assign corresponding weight in every question. There will be 35 OSYAs who are certain to sign up on June 2011.
Contribution Income Statement The following is the contribution income statement which will show that costs are classified according to behavior as variable or fixed, and the contribution margin that goes toward covering fixed costs and providing a profit is emphasized. Revenues per skill (Php 1,000 x 35 trainees)
Php 35,000
Less variable costs Trainers’ Honoraria (Php 5000 x 2)
Php 10,000
Instructional Materials (Php 250 x 35)
Php 8,750
Incidental Expenses Contribution Margin
Php 2,500
(Php 21,250) Php 13,750
Less Fixed Costs Project’s Counterpart to the School Bills (Electricity + Internet Bills)
Php 5,000
Tablon NHS Honoraria
Php 3,000
(Php 8,000)
Total Costs
Php 29,250
Profit
Php 5,750
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Measures Using Contribution Margin The following will present the unit and variable costs per trainee and the relevance of the contribution margin, to wit: Table 3. Total and Per Unit Revenues, Contribution Margin and Costs Total
Per Unit
Ratio to Sales
Php 35,000
Php 1000
1
(Php 21,250)
(Php 607.14)
(0.61)
Contribution Margin
Php 13,750
Php 392.86
0.39
Fixed Costs
(Php 8,000)
Overhead (VC+FC) Costs
(Php 29,250)
Revenues Variable Costs
Profit (R-OC)
Php 835.71
Php 5,750
The contribution margin per unit can be helpful to determine if there will be additional enrollee. If, for example, there will be an additional 15 enrollees, the increase in profit is readily determined by multiplying the enrolment increase by the contribution margin per unit as follows:
15 (additional enrollees) x Php 392.86 = Php 5,892.90 (profit increase)
Break-even Analysis The break-even point (BEP) occurs at the unit sales volume when total revenues equal total costs. Beyond this point, increasing levels of profits are achieved. The formula is as follows:
Therefore, the break-even unit sales volume for this project will be 20 trainees. With a Php 392.86 unit contribution margin and fixed costs of Php 8,000, the project’s break-even point is 20 trainees per skill course. Stated another way, at a Php 392.86 per-unit contribution margin, 20 trainees are required to cover Php 8,000 of fixed costs. 12
Net Present Value The net present value (NPV) measures the actualized net revenue and indicates the attractiveness of the project. It is finding the market value of assets or benefits by taking the present value of future cash flows. The higher the NPV, the more viable is the plan. For this project, the NPV is shown in Table 4. Table 4. The Net Present Value for the First 4 Years of Operation Year
Operating Cost
Income
Net Cash Flow
Annual PV
1
29,250
35,000
5,750
5,476.19
2
58,500
70,000
11,500
10,430.84
3
87,750
105,000
17,250
14,901.20
4
117,500
140,000
22,500
18,510.81 NPV = 19,319.03
∑ = 57,000
Assuming that the initial cost is set at Php 30,000 and the interest rate is 5%, the NPV can be computed. Using the standard NPV formula, the NPV of this project in its four years of operation is Php 19,319.03. Therefore, it can be said that the project of offering a 4-year ladderized ICT course is feasible.
Payback Period The payback period (PBP) is a measure of time required for an initial investment to be recovered, neglecting the time value of money. Using the standard PBP formula, the PBP of this project is 5.51 or 5 years and 5 months.
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PROGRAM OF ACTIVITIES
Table 5 below shows the program of activities that the researcher had set towards the realization of this project.
Table 5. Program of Activities and Implementation Months to Implement Activities J
F
M
A
M
J
J
A
S
O
N
D
Feasibility Study (Planning stage) Feasibility Study (Implementation stage) Feasibility Study (Communicate results) Agreement of the Project’s Implementation Training and Preparation Public Information Drive
Project Implementation
Monitoring and Evaluation
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CONCLUSION AND RECOMMENDATIONS In this feasibility study, it has covered qualitative and quantitative research methods to meet the set objectives. For the first objective, the technical part of offering a 4-year ladderized ICT course is
manageable. The training site which is the Tablon NHS is ready and conducive. The ICT trainers are agreeable to the set-up. All the offices concerned are affirmative and supportive. For the second objective, financial analysis presents that the project is feasible and it only takes 5 years for the initial investment to be recovered. It is important to note though that the project of offering a 4-year ladderized ICT course is not a business nor an income-generating project of the barangay. The proceeds of the revenues that will be collected has to be decided by the offices concerned. Having that said, it is recommended that if things can be ironed out, a memorandum of agreement (MOA) can be met between the LGU-Tablon and Tablon NHS.
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