Download - Report IMT
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EXECUTIVE SUMMARY
To begin the entrepreneurial process, each group members came out with their own
business ideas to be selected that have the business opportunity. After discussion and approval
from Ms. Rosmaizura, business idea of a coconut opener was chosen and has the business
opportunity because it meets the customer wants and demands which add value to the potential
buyer.
To identify the customer needs and wants, target market, competitors, market share and
others, we have done the preliminary research by doing survey to see whether if the business is
worth pursuing further.
Result and analysis from the survey shows that our target market is population around
kajang & bangi and focused on housewives and grocer. We have several competitors and all of
them are international company and it will give us an advantage on marketing strategy, for
operation and administration plan we have 26 people in organizational structure and to start the
business we need RM 2,000,000 as capital.
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THE MARKETING PLAN
The product and customer value
Our business plan is to produce and sell a product known as coconut opener. Usually
people will use traditional tool to remove the coconut coir, however most of them have some
difficulties to remove it because they need lots of force to do it. To overcome this problem, our
product is designed to reduce forces needed to remove the coconut coir.
Coconut opener is a tool to remove the coconut coir and operated by foot in order to
reduce forces being use to remove it. The product consists of blade, spring, paddle and base.
The coconut opener is designed and constructed to achieve these objectives that are to help
people to open coconut easier and in safe way and to save people time to open coconut if they
need to open lots of coconut.
Benefits and value that customer will get from the product is quality, safety features and
promotion. Our product is made of high quality steel that will make it durable, it also has blade
cap and rubber at foot pedal as the safety features.
Things that make the coconut opener different from other competitor are the steel frame
design and how to use the product.
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THE MARKET
Customer Profile
Our target customer are people in the age 25-50 years old especially housewives and
grocer that lives within kajang & bangi who have difficulties in removing the coconut coir using
the traditional tool and for those who try to find other method to remove the coconut coir.
Age : 25-50
Occupation : housewives, grocer
Gender : male/female
Average Income : RM 1500-2000
Potential Market
The price of our product per price is RM 250 and for first 100 customers we give 10% discount
from the normal price.
Location: Bangi & Kajang Selangor- population 300k people
Age (25-50) : 190k
Income (RM1500-RM2000):100k
Occupation(housewives, grocer):80k
Self employed:30k
Have coconut opener at home:1k
Buy coconut at shop:38,000K target customer
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The annual market growth for targeted customer is 10%
Potential Customer x Price per product x Purchase per year
i. 37,500 x 250x 1 = RM 9,500,000
ii. 41,800 x 250 x 1 = RM 10,450,000
Total sales for two years = RM 9,500,000+ RM 10,450,000
= RM 19,950,000
Year 1 Year 2
Number of potentialcustomer
38,000 people 41,8000 people
Total potential sales in
( RM )
RM 9,500,000RM 10,450,000
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THE COMPETITORS
a. Identify The Competitor
No.Name of
CompetitorName of Product
Identify Major Strength or Weakness In The Product
Offered or Company
1COM 20 CO.
LTD
Coconut Dashelling
Machine
-Detaches the coconut shell via a rotating disc cutter.
-Comes with dashelling stations.
2C.D.M CO.
LTD
Coconut Dehusking
Machine
-Can used to dehusk both matured and young coconut.
-Peels of the coconut husk from coconut fruit to obtain
dehusked coconut fruit via hydraulically controlled dehusking
devices.
3
Zhengzhou
Keguan Non-
Ferrous Metal
Material CO.
LTD
KY
-No binder needs to be used.
-The output briquette is widely used in furnaces, boilers and
open fires.
4
Ningbo
Sinobaler
Machinery
SINOBALER-Designed to compact various types of natural fibers.
-Can be used for baling material in big size.
5
Shanghai
JiajingMachinery
JEWEL
-Unique balance style.
-Aplicable with hard waste.
-Electrical control makes cross strapping.
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Competitors Product Analysis
In this analysis, we will rank our costumer benefits, customer cost and overall value
against the competitors according to the public survey. All the analysis will be measure
thoroughly and the result will be evaluated in order to find out our weakness and improve them.
The analysis is based on a survey of 50 persons.
3= GOOD, 2= AVERAGE, 1= POOR
Benefit to Offered/
competitor
weakness to
exploited
Coconut
Opener
Shanghai
Jiajing
Ningbo
Sinobaler
Zhengzhou
Keguan
C.D.M COM 20
Quality 3 3 2 3 3 3
Service After Sale 2 2 2 1 2 2
Application 2 2 1 2 3 1
Material 2 2 1 2 2 3
Comfort Ability 2 2 2 1 3 2
Design Features 2 2 3 2 2 2
Warranty 2 2 2 2 3 3
Price 2 1 2 1 2 2
Overall Customer
Value17 16 15 14 20 18
Total of Customers Value: - 17+16+15+14+20+18= 100
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Competitors Percentages
Our product (Coconut Opener) 17/100 x 100% = 17%
Shanghai Jiajing Machinery 16/100 x 100% = 16%
Ningbo Sinobaler Machinery 15/100 x 100% = 15%
Zhengzhou Keguen 14/100 x 100% = 14%
C.D.M CO. LTD 20/100 x 100% = 20%
COM 20 CO. LTD 18/100 x 100% = 18%
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MARKET SHARE AND SALE FORECAST
Taking into consideration the total market potential, we estimates that we will get 20% share for
the first year and increment of 5% for the second year.
14%
16%
15%
20%
17%
18%
YEAR 1
ZKN SJM
NSM CDM
COCOMAN COM 20
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Estimated market share
Potential sale x estimated market
i. Year 1
= RM 9,500,000 x 20%
=RM 1,900,000
ii. Year 2
= RM 10,450,000 x 25%
=RM 2,612,500
Year 1 Year 2
Estimated market share% 20% 25%
Estimated market share intotal annual sales (RM)
RM 1,900,000RM 2,612,500
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SALES FORECAST
YEAR 1
(RM 1,900,000/12=158,333) TOTAL=RM 1,900,000
JAN FEB MAC APR MAY JUN JUL AUG SEP OCT NOV DEC
MONTH
RM1
58,3
33k
RM1
58,3
33k
RM1
58,3
33k
RM1
58,3
33k
RM1
58,3
33k
RM1
58,3
33k
RM1
58,3
33k
RM1
58,3
33k
RM1
58,3
33k
RM1
58,3
33k
RM1
58,3
33k
RM1
58,3
33k
TIMES -50 -40 -30 -20 -10 0 0 10 20 30 40 50
FESTIVALS +20 -10 +10 -20 -10 +10 0 +40 -20 -10 +10 -20
TOTAL,(RM)
128,3
33
k
108,3
33
k
138,3
33
k
118,3
33
k
138,3
33
k
168,3
33
k
158,3
33
k
208,3
33
k
158,3
33
K
178,3
33
k
208,3
33
k
188,3
33
k
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YEAR 2
(RM 2,612,500/12=RM 217,708) TOTAL=RM 2,612,500
JAN FEB MAC APR MAY JUN JUL AUG SEP OCT NOV DEC
MONTH
RM2
17,7
08K
RM2
17,7
08K
RM2
17,7
08K
RM2
17,7
08K
RM2
17,7
08K
RM2
17,7
08K
RM2
17,7
08K
RM2
17,7
08K
RM2
17,7
08K
RM2
17,7
08K
RM2
17,7
08K
RM2
17,7
08K
TIMES
-50 -40 -30 -20 -10 0 0 10 20 30 40 50
FESTIVALS
+20 -10 +10 -20 -10 +10 0 +40 -20 -10 +10 -20
TOTAL,(RM)
187,7
08K
167,7
08K
197,7
08K
177,7
08K
197,7
08K
227,7
08K
217,7
08K
267,7
08K
217,7
08K
237,7
08K
267,7
08K
247,7
08K
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THE MARKETING STRATEGY
Our target customer is focused on the kajang & bangi population, most of people live in
rural area will realize that our product will make their job easier, so buyers willing to paypremium price for it. We also supply the spare part for the product besides planning to set up
flexible spring to increase product efficiency.
For the competitor, we have Shanghai Jiajing Machinery, Ningbo Sinobaler Machinery,
Zhengzhou Keguen, C.D.M CO. LTD and COM 20 CO. LTD. They have their strength and
weaknesses as in application and customer value.
Through the competitor analysis, we are able to get higher position in getting better
market share which refers to the portion of the same target market. The estimated market sharethat we aiming for are 20% in the first year and 25% in the second year in scale of 100%.
Furthermore, we have got good response from the public through the survey and this is an
advantage for us
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PRODUCT
QUALITY
Our component has been controlled by SIRIM. They requested every material have to
comply with compulsory labeling and quality claims for each product component. We willget the approval certificate and follow all the rules and regulations which set by SIRIM.
PACKAGING
We design that this product should use plastic wrappers to ensure the quality and
ensure the tidiness of the product.
DESIGN FEATURES
PADDLE
BASE
SPRING
BLADE
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BRANDING
Upon confirming the name of product Coconut Opener", we will register the name as
well as the design of logo and packaging design features through the trademark act
which use to protect our business from imitated by others.
WARRANTY
We will provide a long period of warranty for our customers on this product. If the
product is broken in any time before the due date ends, we will ensure it will be fixed free
of charge.
DISTRIBUTION
Types of distribution :
-Manufacturing - > wholesaler - > consumer.
-Location of sales.
-Less intermediaries distribution channel.
PROMOTION
Advertisements
Newspaper
Brochure/Flyers
Banners
Website
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PRICING
Cost + Value Base = RM141
Profit Margin = RM 109
Target Selling Price = RM 250
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MARKETING BUDGET
MARKETING SALARY
POSITION QUANTITY
MONTHLY
SALARY
/PERSON
EPF
(13%)
SOCSO
(2%)TOTAL
CLERK 1 RM800RM104 RM16
RM920
SALES SERVICE 2 RM1300RM338 RM52
RM2990
MARKETING
MANAGER1 RM4000
RM520 RM80RM4600
TOTALRM8510
TOTAL SALARIES: RM8510
MARKETING BUDGET
ITEM MONTHLY INITIALS
INTERNET WEBSITE FREE BY OWN BLOGGER
BANNER RM200
NEWSPAPER RM200
SALARIES RM8510
SALES COMMISSION RM300
FLYERS RM200
SALARIES: RM8510
TOTAL COST: MONTHLY + INITIALS :
RM9, 010 + RM 400 :
RM9, 410
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THE OPERATION PLAN
Customer benefit
BENEFITS CAN BE PROVIDED BY THE OPERATIONSFUNCTION
Quality Of Service YESIncrease Status NOCustomer Service YESCost Of Service YESPremium Selling Service YESService After Sales YESFunctionality System YES
Identifying The Inputs, Transformation Process And Outputs
PRODUCT COCONUT OPENERMaterial Hollow steel, Spring, Blade Bolt Nut, Bearing, Welding rod, Paint,
Tube Rubber, Double Tape, Brush and Paddle.Workers Production Manager, QA Officer, Production Engineer, Production
Supervisor, Engineer, Designer, Maintenance Supervisor,Maintenance Crew, Transport Crew, Production Operator, Clerk.
Machines andEquipment
Welding machine, Hand grinding, Disc cutter, Drilling Machine,Spray Gun, Air Compressor, Measuring Equipment, FastenedTools and Computer.
Technology andMethod
Welding Robots, High technology Coating, Layer Painting
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PROCESS PLAN
Designing coconut opener
Purchasing raw material
Storage raw material
QC inspection (check quality & material specification)
Cutting of the raw material to the size
Send to the welding workshop
Welding the material to makes coconut opener.
Send to grinding workshop.
Grinding process
SEND TO ASSEMBLE
ASSEMBLY PROCESS
Send to painting workshop.
Painting process
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Wait the paint dry.
Send to QC inspection.
QC inspection process
Send to packaging
Packaging process
Send to retail outlet.
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MATERIAL REQUIREMENT PLAN
ITEM QUANTITY PRICE/UNIT
(RM)
TOTAL
(RM)
1 Hollow steel 4 PCS 15.00 60.00
2 Spring 1 PCS 10.00 10.00
3 Blade 1 PCS 13.00 13.00
4 Bolt 3 PCS 1.00 3.00
5 Nat 3 PCS 1.00 3.00
6 Bearing 1 PCS 8.00 8.00
7 Welding rod 1 PACK 15.00 15.00
8 Paint 2 BOTTLE 6.00 12.00
9 Tube 3 FEET 0.50 1.50
10 Rubber 2 PCS 1.00 2.00
11 Double Tape 1 PCS 3.50 3.50
12 Brush 1 PCS 2.00 2.00
13 Paddle 1 PCS 8.00 8.00
TOTAL 141.00
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CONVERTING SALES FORECAST TO QUANTITY OF PRODUCT
From the bills of material, we know that cost for one product is RM 141. So, to find the sales
forecast in term of customer. We use this formula:
Sales forecast in RM/ cost for one product = quantity of product
YEAR 1
MONTH SALES FORECASTQUANTITY OF
PRODUCT
JANUARY RM 128,333 910
FEBRUARY RM 108,333 768
MARCH RM 138,333 981
APRIL RM 118,333 839
MAY RM 138,333 981
JUNE RM 168,333 1,193
JULY RM 158,333 1,122
AUGUST RM 208,333 1,477
SEPTEMBER RM 158,333 1,122
OCTOBER RM 178,333 1,264
NOVEMBER RM 208,333 1,477
DECEMBER RM 188,333 1,335
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YEAR 2
MONTH SALES FORECAST QUANTITY OF PRODUCT
JANUARY RM 187,708 1,331
FEBUARY RM 167,708 1,189
MARCH RM 197,708 1,402
APRIL RM 177,708 1,260
MAY RM 197,708 1,402
JUNE RM 227,708 1,614
JULY RM 217,708 1,544
AUGUST RM 267,708 1,898
SEPTEMBER RM 217,708 1,544
OCTOBER RM 237,708 1,685
NOVEMBER RM 267,708 1,898
DECEMBER RM 247,708 1,756
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Material Requirement
Year 1
Quantity of material needed (Qty) = Quantity per Product x Quantity of Product
Price (RM) = price per unit x Quantity of material needed
January February March April May June July August September October November DecemberQty RM Qty RM Qty RM Qty RM Qty RM Qty RM Qty RM Qty RM Qty RM Qty RM Qty RM Qty RM
Hollowsteel
3,640218,40
03,072 184,320 3,924
235,440
3,356201,36
03,924
235,440
4,772286,32
04,488
269,280
5,908354,48
04,488
269,280
5,056 303,360 5,908354,48
05,340
320,400
Spring 910 9,100 768 7,680 981 9,810 839 8,390 981 9,810 1193 11,930 1122 11,220 1477 14,770 1122 11,220 1,264 12,640 1477 14,770 1,335 13,350
Blade 910 11,830 768 9,984 981 12,753 839 10,907 981 12,753 1193 15,509 1122 14,586 1477 19,201 1122 14,586 1,264 16,432 1477 19,201 1,335 17,355
Bolt 2,730 8,190 2,304 6,912 2,943 8,829 2,517 7,551 2,943 8,829 3,579 10,737 3,366 10,098 4,431 13,293 3,366 10,098 3,792 11,376 4,431 13,293 4,005 12,015
Nat 2,730 8,190 2,304 6,912 2,943 8,829 2,517 7,551 2,943 8,829 3,579 10,737 3,366 10,098 4,431 13,293 3,366 10,098 3,792 11,376 4,431 13,293 4,005 12,015
Bearing 910 7,280 768 6,144 981 7,848 839 6,712 981 7,848 1193 9,544 1122 8,976 1477 11,816 1122 8,976 1,264 10,112 1477 11,816 1,335 10,680
Weldingrod
910 13,650 7 68 11,520 981 14,715 839 12,585 981 14,715 1193 17,895 1122 16,830 1477 22,155 1122 16,830 1,264 18,960 1477 22,155 1,335 20,025
Paint 1,820 21,840 1,536 18,432 1,962 11,772 1,678 20,136 1,962 11,772 2,386 28,632 2,244 26,928 2,954 35,448 2,244 26,928 2,528 30,335 2,954 35,448 2,670 48,060
Tube 2,730 4,095 2,304 3,456 1,471 2,206.5 2,517 3,775.5 1,471 2,206.5 3,579 5,368.5 3,366 5,049 4,431 6,646.5 3,366 5,049 3,792 5,688 4,431 6,646.5 4,005 6,007.5
Rubber 1,820 3,640 1,536 3,072 1,962 3,924 1,678 3,356 1,962 3,924 2,386 4,772 2,244 4,488 2,954 5,908 2,244 4,488 2,528 5,628 2,954 5,908 2,670 5,340
DoubleTape
910 3,185 768 2,688 981 3,433.5 839 2,936.5 981 3,433.5 1193 4,175.5 1122 3,927 14 77 5,169.5 1122 3,927 1,264 4,434 147 7 5,169.5 1,335 4,672.5
Brush 910 1,820 768 1,536 981 1,962 839 1,678 981 1,962 1193 2,386 1122 2,244 1477 2,954 1122 2,244 1,264 2,528 1477 2,954 1,335 2,670
Paddle 910 7,280 768 6,144 981 7,848 839 6,712 981 7,848 1193 9,544 1122 8,976 1477 11,816 1122 8,976 1,264 10,112 1477 11,816 1,335 10,680
Total RM 318,500 RM 268,800 RM 329370 RM 293,650 RM 329370 RM 417,550 RM 392,700 RM 516,950 RM 392,700 RM 442,981 RM 516,950 RM 483,270
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Material Requirement
Year 2
Quantity of material needed (Qty) = Quantity per Product x Quantity of Product
Price (RM) = price per unit x Quantity of material needed
January February March April May June July August September October November DecemberQty RM Qty RM Qty RM Qty RM Qty RM Qty RM Qty RM Qty RM Qty RM Qty RM Qty RM Qty RM
Hollowsteel
4,524272,52
04,756 285,360 5,608
336,480
5,040302,40
05,608
336,480
6,456387,36
06,176
370,560
7,592455,52
06,176
370,560
6,740 404,400 7,592455,52
07,024
421,440
Spring 1131 11,310 1,189 11,890 1402 14,020 1260 12,600 1402 14,020 1,614 16,140 1,544 15,440 1,898 18,980 1,544 15,440 1,685 16,850 1,898 18,980 1,756 17,560
Blade 1131 14,703 1,189 15,457 1402 18,226 1260 16,380 1402 18,226 1,614 20,982 1,544 20,072 1,898 24,674 1,544 20,072 1,685 21,905 1,898 24,674 1,756 22,828
Bolt 3,393 10,179 3,567 10,701 4,206 12,618 3,780 11,340 4,206 12,618 4,842 14,526 4,632 13,896 5,694 17,082 4,632 13,896 5,055 15,165 5,694 17,082 5,268 15,804
Nat 3,393 10,179 3,567 10,701 4,206 12,618 3,780 11,340 4,206 12,618 4,842 14,526 4,632 13,896 5,694 17,082 4,632 13,896 5,055 15,165 5,694 17,082 5,268 15,804
Bearing 1131 9,048 1,189 9,512 1402 11,216 1260 10,080 1 402 11,216 1,614 12,912 1,544 12,352 1,898 15,184 1,544 12,352 1,685 13,480 1,898 15,184 1,756 14,048
Weldingrod
1131 16,965 1,189 17,835 1402 21,030 1260 18,900 1402 21,030 1,614 24,210 1,544 23,160 1,898 28,470 1,544 23,160 1,685 25,275 1,898 28,470 1,756 26,340
Paint 2,262 27,144 2,378 28,536 2,804 33,648 2,520 30,240 2,804 33,648 3,228 38,736 3,088 37,056 3,796 45,552 3,088 37,056 3,370 40,440 3,796 45,552 3,512 42,144
Tube 3,393 5,089.5 3,567 5,350.5 4,206 6,309 3,780 5,670 4,206 6,309 4,842 7,263 4,632 6,948 5,694 8,541 4,632 6,948 5,055 7,582.5 5,694 8,541 5,268 7,902
Rubber 2,262 4,524 2,378 4,756 2,804 5,608 2,520 5,040 2,804 5,608 3,228 6,456 3,088 6,176 3,796 7,592 3,088 6,176 3,370 6,740 3,796 7,592 3,512 7,024
DoubleTape
1131 3,958.5 1,189 4,161.5 1402 4,907 1260 4,410 1402 4,907 1,614 5,649 1,544 5,404 1,898 6,643 1,544 5,404 1,685 5,897,5 1,898 6,643 1,756 6,146
Brush 1131 2,262 1,189 2,378 1402 2,8041260
2,520 1402 2,804 1,614 3,228 1,544 3,088 1,898 3,796 1,544 3,088 1,685 3,370 1,898 3,796 1,756 3,512
Paddle 1131 9,048 1,189 9,512 1402 11,2161260
10,080 1402 11,216 1,614 12,912 1,544 12,352 1,898 15,184 1,544 12,352 1,685 13,480 1,898 15,184 1,756 14,048
Total RM 396,930 RM 416,157 RM 490,830 RM 435,960 RM 490,830 RM 560,900 RM 540,401 RM 649,116 RM 540,401 RM 577,112 RM 649,116 RM 614,600
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CAPACITY PLAN
Average quantity of product for year one: 620 set / month
-Quantity of machine: highest MRP / month
-One machine = one worker
Welding machine: 30 pieces / day
: 150 pieces / week
: 600 pieces / month
Quantity of machine: highest MRP / month
: 595 / 600
: 2
Hand grinding : 30 pieces / day
: 150 pieces / week
: 600 pieces / month
Quantity of machine: highest MRP / month
: 595 / 600
: 2
Disc cutter : 30 pieces / day
: 150 pieces / week
: 600 pieces / month
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Quantity of machine: highest MRP / month
: 595 / 600
: 2
Drilling Machine : 60 pieces / day
: 300 pieces / week
: 1200 pieces / month
Quantity of machine: highest MRP / month
: 1200 / 1200
: 2
Spray Gun : 30 pieces / day
: 150 pieces / week
: 600 pieces / month
Quantity of machine: highest MRP / month
: 600 / 600
: 2
Air Compressor : 30 pieces / day
: 150 pieces / week
: 600 pieces / month
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Quantity of Equipment
ITEMS PRICE PER
UNIT(RM)
QUANTITY TOTAL(RM)
Welding Set RM 2000 2 RM 4000
Hand Grinding RM 400 2 RM 800
Disc Cutter RM 400 2 RM 800
Drilling Machine RM3000 2 RM 6000
Spray Gun RM 400 3 RM 1200
Air Compressor RM 700 2 RM 1400
Measuring Equipment RM 300 2 SET RM 600
Fastened Tools RM 200 2 SET RM 400
Computer RM 2000 2 RM 4000
TOTAL RM 9,400 17 RM 19,200
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LOCATION OF OPERATION
Map to the location of operation
Route to the location of operation
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Specific Target of the location operation
Reasons for the location of operation
Below are the some of the reason that we choose for the location:-
Strategic location
Good for transportation
Near to the highway
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3D FACTORY LAYOUT
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2D FACTORY LAYOUT
Those figures above are the map and layout of our company and it describes the
location of our operation at the industrial area at bangi. It also shows the factory layout and the
facilities that we have for the operation.
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MAN POWER PLANNING (PRODUCTION)
POSITION NUMBERS CATERGORY
PRODUCTION
MANAGER1 INDIRECT
QC 1 INDIRECT
PRODUCTION
SUPERVISOR1 DIRECT
ENGINEER 1 DIRECT
DESIGNER 1 DIRECT
MAINTENANCE
SUPERVISOR1 INDIRECT
MAINTENANCE
CREW2 INDIRECT
TRANSPORT
CREW 2 INDIRECT
PRODUCTION
WORKERS5 DIRECT
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ORGANIZATIONAL STRUCTURE FOR PRODUCTION DEPARTMENT
PRODUCTION
MANAGER
PRODUCTION
SUPERVISOR
DESIGNER
PRODUCTION
WORKERS X 5
QC
ENGINEER MAINTENANCEN
SUPERVISOR
TRANSPORT
CREW
MAINTENANCE
CREW X2
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Position No.
Monthly
salaryper
person
Totalmonthlysalary
EPF13%
SOCSO2%
TOTALMONTHLYAMOUNT
TOTALANNUALAMOUNT
PRODUCTIONMANAGER
1 RM4,000 RM4,000 520 80 4,600 55,200
QC 1 1,500 1,500 195 30 1,725 20,700
PRODUCTIONSUPERVISOR
1 1,800 1,800 234 36 2,070 24,840
PRODUCTIONWORKERS
5 1000 5000 650 100 5,750 69,000
TRANSPORT
CREW 2 800 1600 208 32 1,840 22,080ENGINEER 1 2500 2500 325 50 2,875 34,500
MAINTENANCESUPERVISOR
1 1800 1800 234 36 2,070 24,840
MAINTENANCECREW
2 1500 3000 390 60 3,450 41,400
DESIGNER 1 1700 1700 221 34 1,955 23,460
Total (RM) 15 26,335 316,020
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FACILITIES, MACHINE AND EQUIPMENT PLANNING
ITEMPRICE PERUNIT(RM)
QUANTITYTOTAL(RM)
USEFULLIFE
DEPRECIATION
LORRY 100,000 1 100,000 10 YEARS 1,000AIRCONDITIONER
800 3 2,400 10 YEARS 200
TOILET FLOOR 7.00 5 35 20 YEARSSINK 25.00 5 125 15 YEARSWATER TANK 100 2 200 10 YEARSFIREEXTINGUISHER
45.00 4 180 5 YEARS
TABLE 50.00 4 200 5 YEARS
CHAIR 20.00 6 120 5 YEARSDRILLINGMACHINE
3000 2 6000 10 YEARS 500
WELDING SET 2000 2 4000 10 YEARS 200HANDGRINDER
400 2 800 5 YEARS
DICS CUTTER 400 2 800 5 YEARSSPRAY GUN 400 3 1200 10 YEARSAIRCOMPRESSOR
700 2 1400 10 YEARS 100
MEASURINGEQUIPMENT 300 2 SET 600 7 YEARS
FASTENEDTOOLS 200 2 SET 400 5 YEARS
COMPUTER2000 2 4000 6 YEARS
CEILING FAN 150 5 750 10 YEARSTOTAL (RM) 123,210 2000
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OPERATION BUDGET
YEAR 1
ITEM JAN FEB MAR APR MAY JUNE JUL AUG SEPT OCT NOV DEC
RawMaterial
RM318,500
RM268,800
RM329,370
RM293,650
RM329370
RM417,550
RM392,700
RM516,950
RM392,700
RM442,981
RM516,950
RM483,270
Direct
SalariesIncluded,EFP,SOCSO
12,650 12,650 12,650 12,650 12,650 12,650 12,650 12,650 12,650 12,650 12,650 12,650
Indirect Cost 11,845 11,845 11,845 11,845 11,845 11,845 11,845 11,845 11,845 11,845 11,845 11,845
Maintenance 500 500 500 500 500 500 500 500 500 500
Insurance 3500
Other,Transport,Fuel
500 500 500 500 500 500 500 500 500 500 500 500
Totalmonthlyexpense
28,495 24,995 25,495 25,495 25,495 25,495 25,495 25,495 25,495 25,495 25,495 25,495
Totalmonthly
depreciation
2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Total(RM) 348,996 295,795 356,865 321,145 356,865 445,045 420,195 544,445 420,195 470,476 544,445 483,270
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YEAR 2
ITEM JAN FEB MAR APR MAY JUNE JUL AUG SEPT OCT NOV DEC
RawMaterial
RM396,930
RM416,157
RM490,830
RM435,960
RM490,830
RM560,900
RM540,401
RM649,116
RM540,401
RM577,112
RM649,116
RM614,600
DirectSalariesIncluded,EFP,SOCSO
12,650 12,650 12,650 12,650 12,650 12,650 12,650 12,650 12,650 12,650 12,650 12,650
Indirect Cost
11,845 11,845 11,845 11,845 11,845 11,845 11,845 11,845 11,845 11,845 11,845 11,845
Maintenance 500 500 500 500 500 500 500 500 500 500 500 500
Insurance 3500
Other,Transport,Fuel
500 500 500 500 500 500 500 500 500 500 500 500
Totalmonthly
expense
28,995 26,335 26,335 26,335 26,335 26,335 26,335 26,335 26,335 26,335 26,335 26,335
Totalmonthlydepreciation
2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Total(RM) 427,925 444,492 519,165 464,295 519,165 589,235 568,736 677,451 568,736 605,450 677,451 642,935
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ADMINISTRATIVE PLAN
MANAGING
DIRECTOR
Transport
crew x2
FINANCE &
ADMIN
MANAGER
Promoter
Agent
QAProduction
workers x5
HR OfficerAccountant Clerk
Sale
service x2
Maintenance
supervisor
Clerk
Maintenance
crew x2
Engineer Production
supervisor
Secretary
Designer
MARKETING
MANAGER
PRODUCTION
MANAGER
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Position Identified
POSITION NUMBERS CATEGORY
Managing Director 1 IndirectSecretary 1 IndirectADMIN & FINANCE DEPT.Finance & Admin Manager 1 IndirectPromoter Agent 1 IndirectAccountant 1 IndirectHr Officer 1 IndirectClerk 1 IndirectMARKETING DEPT.Clerk 1 IndirectMarketing Manager 1 IndirectSales Service 2 Indirect
PRODUCTION DEPT.Production Manager 1 IndirectEngineer 1 DirectQA 1 IndirectProduction Supervisor 1 DirectProduction Workers 5 DirectTransport Crew 2 IndirectMaintenance Supervisor 1 IndirectMaintenance Crew 2 IndirectDesigner 1 Direct
TOTAL 26
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JOB DESCRIPTION & SPECIFICATION
Name of
Position
Numbers Job Description Job Specification
ADMIN &
FINANCE DEPT.
Admin & finance
manager 1
Ensure smooth running of admin
& finance
Degree/master in administrative &
finance management
Promoter Agent1
Meeting with client and to
promote the product
Degree/diploma in marketing
Accountant
1
Accounting the budget worker
and all budgets in or out
Diploma in accounting
HR Officer
1
Ensure that the office has smooth
running
Degree in office management
Clerk2
Make a report document SPM/Cert., know how to use
computer
MARKETING
DEPT.Marketing
Manager1
Prepare annual marketing plan
and monthly sales report.
achieve sales target
Degree/master in marketing, min 5
years experience. communicate in
English and Malay
Sales executive2
Meet sales target Degree/diploma in marketing
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Name of Position Numbers Job Description Job Specification
PRODUCTION
DEPT.
Production
Manager 1
Ensure smooth running in
operations. Meets quality and
delivery objectives.
Degree/master in production
engineering. In 5 years production
experience.
Engineer1
Ensure smooth running in
production
Degree in mechanical engineering
QA1
Checking the quality of the
product
Diploma/Degree in production
engineering
Production
Supervisor1
Ensure that the product is not
having a problem.
Diploma in production engineering
Production
Workers5
Need to fabricate and assemble
the product
SPM/ certificate in welding is an
advantage
Transport Crew2
Deliver the product to the
customer
Have driving license
MaintenanceSupervisor 1
Ensure all machine & equipmentin good condition
Diploma in machine maintenance
Maintenance
Crew2
Repair the machine or other
equipment
Certificate in any field engineering
Designer1
Responsible in designing the
product
Degree/diploma in product design
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REMUNERATION FOR STAFF
Position No Monthly
Salary PerPerson
Total
MonthlySalary
EPF
13%
SOCSO
2%
Total
MonthlyAmount
Total
AnnualAmountMARKETING
DEPARTMENT
MarketingManager
1 RM4,000 RM4,000 RM520 RM80 RM4,600 RM55,200
Clerk 1 RM800 RM800 RM108 RM16 RM924 RM11,088
Sales Service 2 RM1,300 RM2,600 RM338 RM52 RM2,990 RM35,880
PRODUCTION
DEPARTMENT
ProductionManager
1 RM4,000 RM4,000 RM520 RM80 RM4,600 RM55,200
Engineer 1 RM2500 RM2500 RM325 RM50 RM2,875 RM34,500
Production
supervisor
1 RM1,800 RM1,800 RM234 RM36 RM2,070 RM24,840
Maintenancesupervisor
1 RM1,800 RM1,800 RM234 RM36 RM2,070 RM24,840
Designer 1 RM1,700 RM1700 RM221 RM34 RM1,955 RM23,460
QA 1 RM1,500 RM1,500 RM195 RM30 RM1,725 RM20,700
Productionworkers
5 RM1200 RM6000 RM780 RM120 RM6,900 RM82,800
Transport crew 2 RM800 RM1600 RM208 RM32 RM1,840 RM22,080
Maintenancecrew
2 RM1,600 RM3,200 RM208 RM64 RM3,472 RM41,664
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ADMIN &FINANCEDEPARTMENTFinance &Admin Manager
1 RM4,000 RM4,000 RM520 RM80 RM4,600 RM55,200
Promoter Agent 1 RM1,300 RM13,00 RM169 RM26 RM1,495 RM17,940
Accountant 1 RM1,600 RM1,600 RM208 RM32 RM1,840 RM22,080
Hr Officer 1 RM1,400 RM1,400 RM182 RM28 RM1,610 RM19,320
Clerk 1 RM800 RM800 RM108 RM16 RM924 RM11,088
TOTAL RM39,890 RM557,880
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EQUIPMENT & ASSET PLANING
FIXED ASSET NOS COST/UNIT
(RM)
TOTAL COST LIFE SPAN DEPRECIATION
PER MONTHCOMPUTER 5 2,000 10,000 5 YEARS
TELEPHONE 5 50 250 5 YEARS
OFFICE TABLE 7 150 1,050 5 YEARS
FAX MACHINE 1 300 300 10 YEARS
MEETING
TABLE1 250 250 5 YEARS
CHAIR 20 120 2,400 3 YEARS
STATIONERY 10 15 150 1 YEARS
WRITING
BOARD2 50 100 4 YEARS
CUPBOARD 2 70 140 4 YEARSPUNCH CARD
MACHINE1 200 200 10 YEARS
AIRCOND 5 500 3,500 5 YEARS
SOFTWARE
LICENCE3 250 750 2 YEARS
FIRE
EXTINGUISHER3 45 135 5 YEARS
COMPANY
BUILDING1 150,000 150,000 50 YEARS 4.500
TOTAL (RM) 169,225 4,500
TOTAL COST =169,225+ 4,500 = RM 173,725
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ADMINISTRATIVE BUDGET
ITEM JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC
DirectSalariesIncluded,EFP,
SOCSO
4,374 4,374 4,374 4,374 4,374 4,374 4,374 4,374 4,374 4,374 4,374 4,374
Indirect Cost 6,095 6,095 6,095 6,095 6,095 6,095 6,095 6,095 6,095 6,095 6,095 6,095
Maintenance 500 500 500 500 500 500 500 500 500 500
Insurance 3,500
Other,Transport,Fuel
500 500 500 500 500 500 500 500 500 500 500 500
Totalmonthlyexpense
14,469 10,969 11,469 11,469 11,469 11,469 11,469 11,469 11,469 11,469 11,469 11,469
Totalmonthlydepreciation
4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500
Total(RM) 18,969 15,469 15,969 15,969 15,969 15,969 15,969 15,969 15,969 15,969 15,969 15,969
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FINANCIAL PLAN
Product Costing & Selling Price
Financial Plan for Q1 of Year 1
Direct Material = RM 141
Direct Salaries = RM 12,650
Indirect Salaries = RM 11,845 Depreciation Of Equipments Per Month = 2000
General Depreciation For Building Per Month = Rm4,500
Facilities, Machine & Equipments =RM 123,210
Utilities = RM 500
Direct Misc Cost (10% Of Direct Salaries And Material) = RM 1,279.1
Indirect Misc Cost(5% Of Indirect Salaries) = RM 592.25
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Direct Cost
RM 12,650 (Direct Salaries X 3 Month) + RM 141(Direct Material X 3 Month) +
RM1, 279.1 (Direct Misc Cost X 3 Month) + RM 2000 (Depreciation of Equipment X 3
Month)
Total Direct Cost = RM 48,210.3
Indirect Cost
RM 11,845 (Indirect Salaries X 3 Month) + Rm4, 500(Depreciation for Building per Month
X 3 Month) + RM 123,210 (Facilities, Machine & Equipments) + RM 500(Utilities X 3
Month) + RM 592.25 (Indirect Misc Cost X 3 Month)
Total Indirect Cost = RM174, 337.25
Total Cost = Dc + IC
= RM 48,210.3+ RM 174,337.25
= RM 222,547.55
Product Costing = Total Cost / Qty of Product (Jan, Feb, Mar)
* From Sale Forecast Qty Product
= RM 222,547.55
2,659
= RM 114.20 per Product
Selling Price = Cost + % Profit
Profit per Margin Of 10% = 10% X RM 114.20
= RM 11.42
Selling Price = RM 114.20 + RM 11.42
= RM 125.62
Therefore Selling Price = RM 125.62 per Product
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TRADING AND P&L ACCOUNT
This Calculation Base on 3 Months for 1st Year
Sales = RM 374,999
Less COGP= RM 145,296
Gross Profit = RM 374,999- RM 145,296
= RM 229,703
Direct Material = RM 432
Direct Salaries = RM 34,950
Indirect Salaries = RM 41,571 Direct Expenses = RM 1,800
Less Operating Expenses
Direct Salaries = RM 12,650
Indirect Salaries = RM 11,845
Depreciation = RM 2000
Total Operating Expenses = RM 26,495
Less Marketing Expenses
Salaries = RM 8510
Advertising = RM 600
Total Marketing Expenses = RM 9,110
Less Administration Expenses
Salaries = RM 10,469
Utilities = RM 500
Total Administration Expenses = RM 10,969
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Total Expenses = Total Operating Expenses + Total Marketing Expenses + TotalAdmin Expenses
= RM 26,495 + RM 9,110 + RM 10,969
= RM 46,574
So, the Net Profit = Gross Profit Total Expenses
= RM 229,703 - RM 46,574
= RM183, 129
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Total Receipt And Payment
YEAR 1
RECEIPTS JAN FEB MAR APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
Loan
received/initialcapital
2,000,000 0 0 0 0 0 0 0 0 0 0 0
Sales 128,333 108,333 138,333 118,333 138,333 168,333 158,333 208,333 158,333 178,333 208,333 188,333
Total Receipts 2,128,333 108,333 138,333 118,333 138,333 168,333 158,333 208,333 158,333 178,333 208,333 188,333
PAYMENTS
A. OperationsFunction
Direct materials 141 141 141 141 141 141 141 141 141 141 141 141
Direct salaries 12,650 12,800 12,800 12,800 12,800 12,800 12,800 12,800 12,800 12,800 12,800 12,800
Indirect salaries 11,845 13,857 13,857 13,857 13,857 13,857 13,857 13,857 13,857 13,857 13,857 13,857
Utilities 500 500 500 500 500 500 500 500 500 500 500 500
Maintenance 0 0 500 500 500 500 500 500 500 500 500 500
Insurance 3500 0 0 0 0 0 0 0 0 0 0 0
Rental ofmachines,equipment
2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Purchase of
fixed assets
129,755 0 0 0 0 0 0 0 0 0 0 0
B. MarketingFunction
Salaries 8510 8,514 8,514 8,514 8,514 8,514 8,514 8,514 8,514 8,514 8,514 8,514
Utilities 500 500 500 500 500 500 500 500 500 500 500 500
Advertisements 600 600 600 600 600 600 600 600 600 800 800 800
Insurance 3,500 0 0 0 0 0 0 0 0 0 0 0
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C. Admin andFinanceFunction
Salaries 10,469 10,469 10,469 10,469 10,469 10469 10469 10469 10469 10469 10469 10469
Utilities 500 500 500 500 500 500 500 500 500 500 500 500
Insurance 3,500 0 0 0 0 0 0 0 0 0 0 0
Purchase offixed assets
173,725 0 0 0 0 0 0 0 0 0 0 0
Rental 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
Total
Payments
363,195 51,381 51,881 51,881 51,881 51,881 51881 51,881 51,881 52,081 52,081 52,081
CashSurplus/Deficit
1,765,138 56,952 86,452 66,452 86,452 116,452 106,452 156,452 106,452 126,252 156,252 136,252
OpeningBalance
0 1,765,138 1,822,090 1,908,542 1,974,994 1,770,350 1,886,802 1,993,254 2,149,706 2,256,158 2,382,410 2,538,662
ClosingBalance
1,765,138 1,822,090 1,908,542 1,974,994 2,061,446 1,886,802 1,993,254 2,149,706 2,256,158 2,382,410 2,538,662 2,674,914
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YEAR 2
RECEIPTS JAN FEB MAR APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
Loanreceived/initialcapital
0 0 0 0 0 0 0 0 0 0 0 0
Sales 187,708 167,708 197,708 177,708 197,708 227,708 217,708 267,708 217,708 237,708 267,708 247,708
Total Receipts 187,708 167,708 197,708 177,708 197,708 227,708 217,708 267,708 217,708 237,708 267,708 247,708
PAYMENTS
A. OperationsFunction
Direct materials 141 141 141 141 141 141 141 141 141 141 141 141
Direct salaries 12,650 12,650 12,650 12,650 12,650 12,650 12,650 12,650 12,650 12,650 12,650 12,650
Indirect salaries 11,845 11,845 11,845 11,845 11,845 11,845 11,845 11,845 11,845 11,845 11,845 11,845
Utilities 500 500 500 500 500 500 500 500 500 500 500 500
Maintenance 500 500 500 500 500 500 500 500 500 500 500 500
Insurance 3500 0 0 0 0 0 0 0 0 0 0 0
Rental ofmachines,equipment
2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Purchase of
fixed assets
123,210 0 0 0 0 0 0 0 0 0 0 0
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B. MarketingFunction
Salaries 8,510 8510 8510 8510 8510 8510 8510 8510 8510 8510 8510 8510
Utilities 500 500 500 500 500 500 500 500 500 500 500 500
Advertisements 600 600 600 600 600 600 600 600 600 600 600 600
Insurance 3,500 0 0 0 0 0 0 0 0 0 0 0
C. Admin andFinance
FunctionSalaries 10,469 10,469 10,469 10,469 10,469 10469 10469 10469 10469 10469 10469 10469
Utilities 500 500 500 500 500 500 500 500 500 500 500 500
Insurance 3,500 0 0 0 0 0 0 0 0 0 0 0
Purchase offixed assets
173,725 0 0 0 0 0 0 0 0 0 0 0
Rental 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
TotalPayments
357,150 49,715 49,715 49,715 49,715 49,715 49715 49,715 49,715 49,715 49,715 49,715
CashSurplus/Deficit
-169,442 117,993 147,993 127,993 147,993 177,993 167,993 217,993 167,993 187,993 217,993 197,993
OpeningBalance
2,674,914 2,505,472 2,623,465 2,771,458 2,899,451 1,770,350 1,948,343 2,116,336 2,334,329 2,502,322 2,690,315 2,908,308
ClosingBalance
2,505,472 2,623,465 2,771,458 2,899,451 3,047,444 1,948,343 2,116,336 2,334,329 2,502,322 2,690,315 2,908,308 3,106,301
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CONCLUSION
Starts with business idea until the final business plan, it is not an easy task for us
to start the business to sell the coconut opener because it needs proper planning beginning
with marketing plan to operation plan, then proceed with administration and end with
financial plan, each of it has their own challenges to be completed, without research and
guidelines from the right person and resources we will never make it as business
opportunity.
So, from now on we believe that by learning entrepreneurship we had open our
eyes to the risk in business and realize what it takes to become a successful business man.
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APPENDIX
COCONUT OPENER
Questionnaire
We are planning to produce a product that can make our life easier, safer and more
comfortable. The opener of the coconut right now is too difficult to remove the coconut coir.
When using traditional tool, there are too much forces being used to remove the coir of
coconut. To overcome this problem, our product is designed to reduce forces needed to
remove the coconut coir.
(Please tick your answer in the bracket)
1. What is your gender?
( ) Male ( ) Female
2. Do you have problem to remove coir of coconut? (If no, go to question 4)
( ) Yes ( ) No
3. What are the problems?
Too long time take to open the coconut coir. ( )
Too much force needed to open the coconut coir. ( )
4. How long do you take to remove the coconut coir?
( ) 1 to 3 minutes
( ) 4 to 6 minutes
( ) 7 to 10 minutes
( ) More than 11 minutes
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5. What kind of tools do you use to remove the coir of coconut?
(You may tick more than one)
( ) Knife
( ) Axe
( ) cleaver
( ) Traditional tool
( ) others. Please specify. _________________________.
6. Do you think the tool is safe?
( ) yes
( ) no
( ) not sure
7. How many coconuts do you removed the coir in a week?
( ) 1
( ) 2
( ) 3
( ) Others. Please specify. _________________________.
8. Which prize that you think is suitable for the coconut opener?
( ) Rm150-200
( ) Rm 201-250
( ) Rm 251-300
( ) others. Please specify. _________________________.
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Indicate your feeling about the following items by ticking (/) on the appropriate bracket.
Strongly Agree Disagree Strongly
Agree Disagree
9. The conventional tool to remove
really helps me. ( ) ( ) ( ) ( )
10. The conventional tool is time
consuming. ( ) ( ) ( ) ( )
11. Which brand of tool that you use to open the coconut coir?
( ) Bg farm
( ) Coconut Dehusking Machine
( ) other. Please specify. _________________________.
12. State your opinion to improve the coconut opener?
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Thank you for your cooperation