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



: 595 / 600

: 2

Disc cutter : 30 pieces / day

: 150 pieces / week


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: 595 / 600

: 2

Drilling Machine : 60 pieces / day

: 300 pieces / week



: 1200 / 1200

: 2

Spray Gun : 30 pieces / day

: 150 pieces / week



: 600 / 600

: 2

Air Compressor : 30 pieces / day

: 150 pieces / week


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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


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


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


Indirect Salaries = RM 41,571 Direct Expenses = RM 1,800

Less Operating Expenses


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

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