toy manufacturers project report.

1. Introduction
What is my project?
Even in the fast-paced, money-driven world of the 21st century, toys,
undeniably, are still an inseparable part of childhood. From the classical
Barbie dolls and Lego blocks, to remote-controlled cars and computer-
programmed robots, toys dominate the world of the young. The demand is
ever-increasing, and customers are constantly looking for creativity and
originality, and of course the toys’ affordability.
This project examines the needs of the market, its demands and expectations,
and aims to meet these expectations by putting forward innovative ideas
that emphasizes novelty while keeping the product cost reasonable and
affordable by the general public.
This project would further explore the effect of toys on the over-all development
of a child, seeking to develop toys that are beneficial to the proper growth
of a child and will aid his/her character development, impacting his/her
future decisions and career.
Thus, I decide to choose a “Toy Manufacture” project for my assignment. It is a
challenging business project with high ROI (Return on Investment),
demanding creativity and entrepreneurship, and is realistic and impacts our
day-to-day lives.
Why did I choose this project?
IT project is also interesting and creative. But my aim is to become a business
man so I choose a business project as my project. Business project is not
simple as the way I construct my project, but it is almost basic like this. My
ambition is to become a business man and thus I decide to choose a
business project as for this assignment. This project covers the
fundamental structure of a business project, and summarizes the complex
business functions into its basic forms and practices.
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2. Since young, you definitely would wish to own at least one toy. A toy means a lot
to a child. It is not only something to play with, but it is just like a friend he
can hold close to his heart. Furthermore, toys contribute to the intellectual
development of a child, as well as bringing happiness to their childhood.
They also play an important part in ensuring the proper development of a
child, be it mentally, emotionally, socially, physically or psychologically.
When I was a child, my mother used to buy me small robots or cars. I can vividly
remember how doubtlessly happy I was at that time. Toys were me source
of encouragement and motivation. They propelled me to strive for better
heights when I was in kindergarten, primary and even in secondary school.
I tried my all best to be a good little boy and study hard for the reward of a
toy when I finally achieved good results. I can feel how blissful it was to
own a toy, and just how influential a toy may to a young, innocent mind.
Unfortunately, not all the children in the world have a chance to experience the
exhilaration of having a toy, mainly due to financial inadequacy. This is the
reason why I decide to invest in toy manufacturing, to produce different
toys of affordable prices for export to countries where children have yet to
experience the joy toys bring your lives.
History of Company:
This is the situation how i create my project. I start with a company name
“ARCHY” with the logo:
The ARCHY Company began in the workshop in Pakistan, start making
wooden toys in 2007. It expanded to producing plastic toys recently;
ARCHY began producing the now famous in toy cars, calling them "Cars
that child can ride". These cars were based largely on the design of a
designer Mr. Adeel Ahmad in 2008. ARCHY modified the design of the
design after examining a sample given to it by a British supplier of an
injection-molding machine that ARCHY had purchased. The first ARCHY
sample, manufactured from a factory in Pakistan, was developed in the
spirit of traditional wooden cars that could be heavy and rough; but these
plastic materials could be cheaper and nicer.
The ARCHY Company's motto is "Devotion for children", this motto was created
by CEO to encourage his employees never to skimp on quality, a value he
believed in strongly. The motto is still used within the company today.
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3. The use of plastic for toy manufacture was not highly regarded by retailers and
consumers of the time. Many of the ARCHY Company's shipments were
returned, after poor sales; it was thought that plastic toys could never
replace wooden ones.
Acknowledgements
First and foremost, i would like to thank to our professor of this project, Dr. Ali
Ahsan for the valuable guidance and advice. He inspired us greatly to work
in this project. His willingness to motivate us contributed tremendously to
our project.
I wish to express my cordial gratitude to the all peoples who have played a
crucial role in the research for this project, without their active cooperation
the preparation of this project could not have been completed within the
specified limit.
The next person I would like to acknowledge is my project guide Mr. Tanveer
Ahmed who supported me throughout this project with utmost cooperation
and patience.
Finally, an honorable mention goes to my family and friends for their
understandings and supports on us in completing this project. Without
helps of the particular that mentioned above, we would face many
difficulties while doing this project.
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4. PROJECT CHARTER
Project Name: Giving a colorful
life to a child through toys
Project Number:0044
Date: 23122010 Revision Number:44333
PROJECT GOALS
In childhood you definitely would wish to own at least one toy. A toy means a lot to a
child. It is not only something to play with, but it is just like a friend he can hold close
to his heart. Furthermore, toys contribute to the intellectual development of a child,
as well as bringing happiness to their childhood. They also play an important part in
ensuring the proper development of a child, be it mentally, emotionally, socially,
physically or psychologically.
Unfortunately, not all the children in the world have a chance to experience the
exhilaration of having a toy, mainly due to financial inadequacy. This is the reason
why I decide to invest in toy manufacturing, to produce different toys of affordable
prices for Pakistani children whom have yet to experience the joy toys bring your
lives.
DELIVERABLES
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5.  To keep a child entertained
 Toys That Encourage "Grown-Up" Behavior
 The intellectual development of a child
 Development of a child through mentally, emotionally, socially, physically or
psychologically.
SCOPE DEFINITION
To create toys for every home. The project is a simple business project. However, the
benefits it brings are huge. Children are the most potential customer which makes the
business more interesting and high profit. The Return on investment (ROI) is about 35%
which is quite high for a small business. It also brings jobs for a town where the factory
placed in.
PROJECT MILESTONES
Task Name Duration(Days)
1 Market research 10
2 Analyze survey 15
3 Model making 10
4 Rent Factory 3
5 Bank Loan 5
6 Import production line 5
7 Hire worker 15
8 Training worker 10
9 Produce sample 20
10 Testing data 5
11 Improve feature 20
12 Plan Marketing 5
13 Advertise 20
14 PR 10
15 Manufacture 30
16 Deliver production 5
Project Budget: 10,000,000
Project time: 135 days (4Months 15 days)
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6. CONSTRAINTS & DEPENDENCIES
Cultural differences would make it difficult to manage the workers, in addition the
political and terrorism constraint can also have a deep affect on the delivery of the
project. The time and cost are the dependencies of this project which are mentioned
above. So the project has to be delivered within the given budget and the given time.
Stakeholders:
The stakeholders of my organization are:
Internal Stakeholders:
• Project Manager
• Employees
• Auditors
• Managing and other directors related to project
External Stakeholder:
• Bank
• Children
• Sponsors
o Lego toys inc.
o Toys r us.
Requirements Documentation:
Business Need/Problem
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7. The business need is to make profit out of a market that has all type of
customers. The problem is that the children of Pakistan don’t get to play with
good quality toys and not all children get toys accessibility.
Project Objectives
• To keep a child entertained
• Toys That Encourage "Grown-Up" Behavior
• The intellectual development of a child
• Development of a child through mentally, emotionally, socially, physically
or psychologically.
• Gain profit through a market in which providing toys to every Childs home
will be out utmost responsibility.
Working hours:
Our working hours will be from 09:00am to 05:00pm. Late working
hours will also be accepted in case of bonuses and need of
money. Plus security persons and other maintenance people will
always be in the factory.
PROJRECT TIME FRAME
Requirements Management Plan:
The requirements management plan includes the WBS structure of the
project that is given as follows:
The project contains 16 tasks, each task has one function and been divided in WBS
(Work Break down Structure). The following chart is showing the WBS:
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8. Page 8
PROJECT
Import
Productio
n Line
Hire
Worker
Market
Research
Analyze
Surveys
Factory
Rent
Produc
e
Bank
Loan
Testing
data
Improve
feature
Model
Making
Marketing Advertise
ments
Public
Relations

9. Project Plan
The work will be done in the following way.
• Archy toys will loan from Askari Bank which amounts
300,000,000.
• We will rent a factory in Rawalpindi industrial site. Its cost is
100,000 RS per month.
• The raw material that will be used in creating toys will be
purchased from Plastic factory. Its cost will be 20,000 RS per
need.
• For wooden toys the raw materials will be purchased from the
wood factory. Its cost will be 60,000 per need.
• Machinery’s cost is 150,000 which is an automatic machine. Give
raw materials through one end and get the finished product
through the other end.
• Our working hours will be from 09:00am to 05:00pm. Late
working hours will also be accepted in case of bonuses and need
of money. Plus security persons and other maintenance people
will always be in the factory.
• Archy toys will be responsible for all transporting of the materials
and machinery to the factory.
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10. • Hiring and training will be based upon employer’s skills,
education and output.
• Their payment is also accordingly.
Project Schedule:
Sr. NO Activities Month Year Duration
1 Market research 12 2010 10
2 Analyze survey 1 2011 15
3 Model making 1 2011 10
4 Rent factory 12 2010 3
5 Bank line 12 2010 5
6 Import production line 12 2010 5
7 Hire worker 1 2011 15
8 Train worker 1 2011 10
9 Produce sample 2 2011 20
10 Testing data 3 2011 5
11 Improve feature 3 2011 20
12 Plan marketing 4 2011 5
13 Advertise 4 2011 20
14 PR 4 2011 10
15 Manufacture 5 2011 30
16 Deliver product 6 2011 5
Total Budget: $206,800
Loan: 220,000
Project Tasks
Market research:
Market research is a continuing exercise to collect and analyze
environmental, consumer, competitor and industry information to
make the project decisions less risky.
The main mission is surveying the potential customers, children and
parents, to know what they want, how they want and some
information. According to the survey, we can know the taste of the
customers and the trend of the market. Here are some questions in
the survey:
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11. Q: What kinds of toy do you like the most?
A: a) Robot
b) Cars
c) Dolls
d) Others: ……………
Q: You want your toys have what kind of characteristics?
A: a) Look nice
b) Useful
c) Smart
d) Others: ……………
After collecting survey from the customers, we can continue to the
next task, Analyze survey, to know the taste of the market.
Analyze survey:
Analyze survey is one of important tasks because it helps the project
less risky and more judicious. Analyzing is the tasking of dividing
and doing the statistic with the number to find out what the trend of
market is.
According to the result of analyzing survey, we can decide which
model we will product and how should we design it. The following
chart shows the result of 1000 surveys in Pakistan:
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12. That leads the decision to choose manufacture toy cars is my project
Model making:
Model making is to sketch and draw the production on the paper.
The mission is completed by the professional designer. After
choosing the most suitable model, the project will produce a
sample.
Rent Factory:
It is costly to build a new factory. It also wastes much time. The
alternative way is to rent a factory. We need to find a factory to
manufacture. Almost factories are in suburb. It is cheaper and
friendlier with the environment.
Bank loan:
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13. This task is part of budget plan and control. It is one way of attract
investment and money. When my project has enough of money, it
can run smoothly.
Import Production line:
After renting factory and having enough money, we can start
importing production line to produce toys. The main mission is
buying machine and making a completed production line from
beginning to finish. The production line can be automatic or semi-
automatic.
Hire worker:
To start producing toys, my project needs worker to work in the
factory. So, the task is to employee. With the size of the factory, we
can hire from 100 to 200 workers.
Training worker:
To operate the production line, the employees have to know how to
run the machines and control them. To make them understand, a
course of training worker would be held to guarantee the quality of
production and the success of project.
After that, we can produce production to test and evaluate.
Produce sample:
Before manufacture with a huge amount, we need to test and
evaluate production. Thus, we first produce some samples to test
and evaluate. The duration is about 20 days to make a complete
production.
Testing data:
This is the time for evaluating the sample production. We will
record the stats for each feature of the toys. Then we will test for the
real usage. Also, we can make the survey for the customer to
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14. evaluate as well. After all, we can know what is the weak point and
strong point to improve.
Improve feature:
Before manufacturing with a huge quantity, this is the last time the
product can be improved the features and remade the weak points.
After all, we have the perfect toys model for producing. This will
takes 20 days to improve and revise the production.
Plan Marketing:
Now we can be ready to produce the best toy cars to the market.
What we have to do now is planning marketing it for the
distributors and the customers. Marketing is an integrated
communications-based process through which individuals and
communities discover that existing and newly-identified needs and
wants may be satisfied by the products and services of others.
Marketing is influenced by many of the social sciences, particularly
psychology, sociology, and economics. Anthropology and
neuroscience are also small but growing influences. Market research
underpins these activities through advertising; it is also related to
many of the creative arts. The marketing literature is also infamous
for re-inventing itself and its vocabulary according to the times and
the culture.
Advertise:
This is a part of marketing. We can advertise our production by
advertising on TV, poster, on newspaper and other media.
Advertising is a form of communication that typically attempts to
persuade potential customers to purchase or to consume more of a
particular brand of product or service.
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15. Poster Advertisement
Public Relation:
PR (Public Relations) is also known as a strategy of
marketing. Public relations help an organization and its publics
adapt mutually to each other. Doing PR is one of difficult tasks for
marketing the production to public.
Manufacture:
This is the main task of business. We can produce a big
quantity according to the contract and bring the production to the
market.
Deliver product:
To deliver productions to the distributor, this is the last task to
complete the project. We keeping finding the contract and improve
our business. We will gain profit by manufacture with a big amount.
Scheduling Technique
Time duration:
• Start day: Monday 12/20/2010
• Finish day: Friday 06/24/2011
• Duration: 135 days (4 months 15 days)
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16. Quality Management Plan
Roles Job Description with related to Quality
1 Project manager The project manager is concerned with every part of the
project. He is the vital person who plays the major role in
the project. The project manager will have the overall
responsibility for the quality of the project
2 Quality Control
Manager
A quality manager will coordinate the activities required to
meet quality standards. He will also monitor and advice on
the performance of the quality management system and
produce data and report on performance, measuring against
set indicators.
3 Quality Control
Inspector
The quality control inspector works in a manufacturing
environment and will ensure the quality of products or
goods manufactured. Using different machineries or
products his/her responsibilities will include determining if
manufactured products or goods meet quality standards
enforced by the manufacturer. Findings are reported and
analyzed and may result in improving or changing a
manufacturer process.
4 Quantity Surveyor The quality surveyor will ensure that what ever
procurements are made should be of A1 quality and has no
defects. They also manage all costs.
5 Project Engineer He will ensure the quality related to the technical side of
the project. He will ensure the machinery is producing
good quality products.
6 Marketing Manager The marketing manager will ensure that the products are
packed with quality so that they don’t damage while
transportation. They also will ensure that the
advertisements are of quality so that they attract the
customers easily.
The quality management plan will ensure that the quality is kept according to the set
standards. There will be regular checks of the machinery, raw materials, employees so
that all are ensuring quality.
Risk Register
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17. Sr. NO Risks Risk Management
1 Political Risk We cannot avoid political risk due to the political
crisis in Pakistan but we ensure that Archy’s toys
will not hire people linked to political system.
Secondly no one would be allowed to take part in
political games.
2 Inflation Forecasting’s will be made in advance to the
every period of time so that Archy’s toys will
make advance bookings of materials that will be
needed in the production in case of inflation.
3 Material Damage The transportation of the material would be
ensured in good packing material. Plus in the
factory the material would be ensured to be in a
safe place so that no material gets damaged. Fire
proof measures will be taken in the factory so that
in case of a fire all materials and machineries of
the company are safe.
4 Supplier The chosen supplier of our company would be
told strictly to ensure the quality materials on
time.
5 Power Breakdown The risk of load shedding would be minimized by
placing at least two generators of 40 KVA’s.
Their would be an extra cost in the expense of
diesel in case of power break downs or load
shedding.
6 Employee turnover The risk of employee turnover will be minimized
by giving employee benefits to them. Such as
annual bonuses, comfortable working
environment, 1 day off in a week & Emergency
leaves e.t.c.
7 Competitors Our marketing manager will be ensured to keep
an eye on the competitors so that we don’t lose
our market shares while any changes.
Procurement plan
The following steps make the procurement plan:
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18. • Request for Quotations: In request for quotations we will float a tender in
the newspaper.
• Supplier identification: We will select that supplier which will provide us
the materials timely and cost efficiently. They would also be considered in
accordance to the quality of the materials.
• Schedule:
SR. No Procurements Schedule
1 Plastic 1-2 months
Nov 2010 – Feb 2011
2 Wood 1-2 months
Nov 2010 – Feb 2011
3 Paint 1-2 months
Nov 2010 – Feb 2011
4 Machinery 1-2 months
Nov 2010 – Feb 2011
5 Vehicles for Transportation 1-2 months
Nov 2010 – Feb 2011
6 Computer and stationeries 1-2 months
Nov 2010 – Feb 2011
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19. Human Resource Plan
ORGANIZATIONAL CHART
Roles & Responsibilities and Wages
SR. No Job Name Description Wages
1 Managing director MD will be the head of all the operations
and everything will be reported to him.
He has the highest authority in the
organization. He has to directly
communicate with its stakeholders.
$20,000
2 Project manager The role of the project manager will be
planning, executing and finalizing project
according to strict deadlines and within
budget. It includes acquiring resources
and coordinating the efforts of team
members and third party contractors or
consultants in order to deliver project
according to plan. He will also define the
$18,000
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20. projects objectives and oversee quality
control throughout its life cycle.
3 Marketing manager Typically marketing manager will
oversee all marketing, advertising and
promotional staff and activities. He will
establish marketing strategies to meet
projects objectives. Evaluate customer
research, market conditions, and
competitor data and implement
marketing plan change as needed.
$15,000
4 Procurement manager His main responsibility will be to
purchase all the required items as per
need. Other areas of responsibility
include price negotiation, planning,
production, inventory control, quality
control and factory control.
$8,000
5 Finance manager Maintain day-to-day financial control of
the service within budget heads agreed
by the trustee board. Ensure that all
finances are properly administered and
monitored, including credit control.
Advise on the proper allocation of
resources. Ensure that appropriate
financial regulations and controls are in
place and used at all times. Prepare a
review detailed budgets for approval by
the governing body in conjunction with
the honorary treasurer and appropriate
subcommittee. Ensure that all financial
reporting obligations are met in relation
to submissions for funding, for grant aid,
for contracts and any other initiatives.
$10,000
6 Project engineer Head project meeting to collect and
disseminate information pertaining
projects. Technical specification review
and resolution. Coordinate the collection
and disseminate of technical information
between the company and customer.
Schedule and monitor program activity to
achieve an on time result including
$8,000
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21. follow up with external suppliers to
ensure timely response too action items.
Monitor program cost activity to achieve
an in budget result. Evaluates project
performance of functional areas. Perform
other assigned duties as deemed
necessary by the supervisor. Prepare
7 Quality control manager Plans, coordinates, and directs quality
control program designed to ensure
continuous production of products
consistent with established standards:
Develops and analyzes statistical data
and product specifications to determine
present standards and establish proposed
quality and reliability expectancy of
finished product. Formulates and
maintains quality control objectives and
coordinates objectives with production
procedures in cooperation with other
plant managers to maximize product
reliability and minimize costs.
$7,000
Communication Plan
Objectives of communication:
• To provide RFQ to the supplier of the material.
• To keep a record of the purchased materials.
• To keep a check whether the materials are being delivered
as per schedule.
• To keep a record of the accomplished and unaccomplished
goals.
• To check whether the work is done right or wrong.
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22. • To provide performance feedback to the project team.
Communication:
• Communication will be through monthly meetings and all
the project performance will be delivered through
documentation. Meeting shall be scheduled thoroughly the
project.
• Communication will be done via emails to the consultants. In
return the consultant will provide a schedule for on site
inspection.
• Communication with the project team will be done daily
with face to face conversation.
• Communication with the supplier will be done through
documentation on every purchase, RFQ will be submitted to
the supplier in return the supplier will give quotations and
best suitable supplier will be chosen. The supplier will submit
invoices of the delivered materials on each purchase.
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23. Conclusion
Even in the fast-paced, money-driven world of the 21st century, toys,
undeniably, are still an inseparable part of childhood. From the classical
Barbie dolls and Lego blocks, to remote-controlled cars and computer-
programmed robots, toys dominate the world of the young. The demand
is ever-increasing, and customers are constantly looking for creativity
and originality, and of course the toys’ affordability.
The project is a simple business project. However, the benefits it brings
are huge. Children are the most potential customer which makes the
business more interesting and high profit. The ROI is about 35% which
is quite high for a small business. It also brings jobs for a town where
the factory placed in.
Page 23