• Development of a product design by pulling together something new or arrange existing things in a new way to satisfy a recognized need of society • Product: Automatic Bed Stretcher • Device that automatically stretches and hence tidying the bed by a button click, mechanically and electrically powered

1. KKKP 4065 INDUSTRIAL
PROJECT
28TH MAY 2014

2. AMIR ASYRAF BIN
MOHAMMAD REDZUAN
A131118
RASYIDAH BINTI AHMAD
A133446
CHIA CHONG PERN
A133960

3. 1. INTRODUCTION
2. PRODUCT DESIGN DEVELOPMENT
3. PRODUCT MATERIAL SELECTION
4. DISCUSSION ON PROCESS
5. PROCUREMENT
6. FACILITY PLANNING
7. PRODUCTION & PLANNING CONTROL
8. QA/QC
9. MARKETING/BUSINESS PLAN
10.COST ESTIMATION/BREAKEVEN
ANALYSIS
11.SUSTAINABILITY
12.CONCLUSION

4. INTRODUCTION
Company Profile Problem Statement
Introduction

5. COMPANY PROFILE
ABS SDN BHD
ABS SDN BHD
DATE OF INCORPORATION : 1ST FEBRUARY 2014
WEBSITE : www.absmalaysia.com.my
EMAIL : absmalaysia@abs.com.my
COMPANY LOCATION :NO 88, JALAN P 4/9, SEKSYEN 4,
BANDAR TEKNOLOGI KAJANG,
435000 SEMENYIH,
SELANGOR
OPERATION
HOURS
MONDAY FRIDAY
8.OO AM TO 5.00 PM

6. COMPANY MISSION
COMPANY VISION
We want to be the leader manufacturer and research center on creating inspiring,
innovative products which proven more convenient to conventional products to ease the
burden to customers. This company also targets to provide sleek, elegant design can
attract prospective customers from more than one target groups beside create new
trends for the best value of money as part for the sustainability.
This mission is to create a need for our brands by providing user friendly
Automatic Bed Stretcher products that prove to be convenient to customers.

7. Marketing &
Sales Manager
General
Manager
Managing
Director
Sales &
Coordinator
Site
Manager
Financial
Executive
HR/Admin
Executive
Storekeeper
Driver
Design
Engineer
Process
Engineer
QA
Supervisor
Casting
Injection
Shielded
Metal Arc
Welding
Assembly
Mixing
Maintenance
Engineer
Technician
Procurement
Draughtsman
Purchasing
Executive
General
Clerk
ORGANIZATIONAL
CHART

8. URBAN LIFESTYLE NOWADAYS FORCES
PEOPLE TO BE MOE EFFICIENT IN THEIR
ACTIONS, HENCE IN NEED OF
ANYTHING THAT WILL HELP THEIR DAILY
LIVES TO BE MORE EFFICIENT
MOST WILLING TO SPEND OR TAKE THE
EXTRA MILE ON PRODUCTS THAT
PERCEIVED TO BE MAKING THEIR LIVES
EASIER

9. PEOPLE SOMETIMES ARE TOO BUSY
(OR TOO LAZY) TO ALLOCATE TIME TO
MAKE UP THEIR BEDS
IN THE MORNING
SOLUTION?

10. THE AUTOMATIC BED
STRETCHER
DESIGNED FOR CONVENIENCE.

11. ABS
PRODUCT
PACKAGING

13. WHAT DOES IT DO?
OUR COMPANY PRODUCE THE DEVICE,
CONSISTS OF COMPONENTS INSIDE
THE HOUSING, AND TO BE
ATTACHED MANUALLY TO THE
UNDER OF THE BED

14. PRODUCT
DESIGN
DEVELOPMENT
Problem Statement
Design Objectives
Benchmarking
QFD
PDS
PROBLEM DEFINITION
Internet
Patents
Trade
Literature
GATHER INFORMATION
Brainstorming
Functional
Decomposition
Morphological
Chart
CONCEPT GENERATION
Pugh Concept
Decision Matrices
EVALUATION OF
CONCEPTS

15. PRODUCT
DESIGN
DEVELOPMENT

17. PRODUCT
MATERIAL
SELECTION

18. Part Material
External Housing Polyvinyl Chloride (PVC)
Housing Polyethylene (PE)
Spur Gear Holder Polypropylene (PP)
Spur Gear Motor Cast Steel
Spur Gear x4 Cast Iron

19. Density 81.2 - 98.6 (lb/ft^3)
Price 0.422 – 0.464 (USD/lb)
Young’s Modulus 0.31 – 0.6 (10^6 psi)
Yield Strength 5.13 – 7.56 (ksi)
Hardness (Vickers) 10.6 – 15.6 (HV)
Maximum service temperature 140 – 158 (°F)
Electric Properties Good electric insulator
Transparency Translucent
Density 55.6 – 56.8 (lb/ft^3)
Price 0.522 – 0.574 (USD/lb)
Young’s Modulus 0.13 – 0.225 (10^6 psi)
Yield Strength 3 – 5.4 (ksi)
Hardness (Vickers) 6.2 – 11.2 (HV)
Maximum service temperature 212 – 239 (°F)
Electric Properties Good electric insulator
Transparency Translucent
Density 58.6 – 59.9 (lb/ft^3)
Price 0.572 – 0.629 (USD/lb)
Young’s Modulus 0.0901 – 0.13 (10^6 psi)
Yield Strength 2.6 – 4.21 (ksi)
Hardness (Vickers) 3 – 6.5 (HV)
Maximum service temperature 194 – 230 (°F)
Electric Properties Good electric insulator
Transparency Translucent

20. Density 440 - 453 (lb/ft^3)
Price 0.258 0.284 (USD/lb)
Yield Strength 20.3 60.9 (ksi)
Fracture Toughness 9.1 21.8 (ksi.in^ 1/2)
Thermal Conductivity 23.1 41.6 (BTU.ft/h.ft^2.F)
Specific Heat Capacity 0.103 0.118 (BTU/lb.F)
Thermal Properties Good thermal conductor
Thermal Expansion
Coefficient
6.11 6.94 (µstrain/ F)
Density 487 - 493 (lb/ft^3)
Price 0.366 0.402 (USD/lb)
Yield Strength 58 - 218 (ksi)
Fracture Toughness 12.7 - 182 (ksi.in^ 1/2)
Thermal Conductivity 19.6 31.8 (BTU.ft/h.ft^2.F)
Specific Heat Capacity 0.0979 0.127 (BTU/lb.F)
Thermal Properties Good thermal conductor
Thermal Expansion 5.83 7.5 (µstrain/ F)

21. MANUFACTURING
PROCESS
Discussion on
processes Involved
Procurement

22. Manufacturing process Raw materials Components
Injection molding  PVC
 PE
 PP
 external housing
 Housing
 spur gear holder
Die casting  Cast steel
 Cast iron
 Cast iron
 spur gear motor
 spur gear
 cable holder
Shielded arc metal
welding
 Combine cable
holder with spur
gear

23. Injection Molding
• Injection molding process will be used for the manufacturing the external housing,
housing and the spur gear holder.
Die Casting
• Die casting is chosen for the manufacturing of the gear.
• Can form complex shapes
• High strength parts
• Very good surface finish and accuracy
Welding
• Welding process will be used for the combination of the holder to the spur gear.

24. Flow Process Diagram
Injection molding process
Die Casting Process

25. Shielded Metal Arc Welding (SMAW)
• Assembly

26. Specifications:
Model : NE50-5E
Clamping Force : 50ton
Screw Dia. : 28mm
Injection Capacity : 57cm3
Injection Speed : 330mm/sec
Clamping Stroke : 170mm
Mold Thickness : 180~240mm
Tie Bar Clearance : 330x330mm
Price:
Approximate RM60,000
Seller:
Shasima Sdn Bhd
Telephone: 60-12-2265507
Fax: 60-3-62577079
Address: NO 11A, JALAN BAGAN TERAP 26/11, SEKSYEN 26 SHAH
ALAM,
40400 SHAH ALAM, MALAYSIA.
Injection Molding Machine

27. DIE CASTING
MACHINE
Price:
Approximate RM 60,000
Company:
Name: Beta Die Casting Equipment
Telephone: (519) 621-0799
Fax: (519) 621-8474
Address: 200 Beverly Street, Cambridge, Ontario, Canada

28. CNC GEAR MEASUREMENT
MACHINE
CLP-15S
Maximum measurement diameter: 150mm.
Description
CNC gear measuring instruments - enables quick, fully automated
measurement of tooth profile, lead, pitch and runout of sintered or injection
molded gears used for precision instrument and electronic devices. Since the
system is computerized throughout from measurement to analysis of results,
reliable and high-accurate measurement is realized. OSK can also provide a
wide range of software to meet requirement
.
■ CLP-35
( Maximum measurement diameter: 350mm )
Price:
Approximate RM 150,000.00
Company:
Name: Cairnhill Technology Sdn Bhd
Telephone: (519) 621-0799
Fax: (519) 621-8474
Address: No.38, Jalan PJS 11/8, Bandar Sunway, 46150 Petaling Jaya,
Selangor Darul Ehsan, Malaysia

29. MOISTURE CONTENT
TESTING EQUIPMENT
Price:
Approximate RM3,000.00
Company:
Name: Guangdong China (Mainland)

30. FACILITY
PLANNING
In this section, it is important to decide the layout of our
factory. This will related to the efficiency and the productivity
of production line. In order to get the optimum layout, some
data have to be analyzed.

31. Factory Layout

32. Activity Relationship Chart
• Defined by closeness ratings:
• A - Absolutely necessary for departments to be next to
each other
• E - Especially important
• I - Important
• O - Ordinary
• U - Unimportant
• X - Undesirable to locate departments near each other

33. Flow Process Chart
• Plastic Component

34. Spur Gear

35. Spur Gear Motor

36. Assembly of the device

37. Flow Process Sequence

38. Production Capacity
• Cycle time of one cycle of assembly:
• Cd = (Assembly + load and unload time) x allowance
= (4.1 min + 0.5 min) x 20%
= 3.68 min
• 8 hours of working time per day:
(8 x 60)/ 3.68 = 131.44 products per day
250 days of working days in a year (weekend and public holiday
are excluded)
250 x 131.44 = 32, 608.70
= approximate 32, 609
products per year

39. Line balancing
• N =
0.7+0.8+1.2+1.2+1.2+2.0+1.2
3.68
= 2.25
= 3 workstations
• Efficiency, E =
0.7+0.8+1.2+1.2+1.2+2.0+1.2
3(3.68)
= 0.7518
= 75.18%

40. Material Handling

41. PRODUCTION &
PLANNING
CONTROL
Pull & Push System Supply Chain Forecasting
Inventory
Management

42. Push and Pull System
• Components production for example
gear and external housing are produce
by push system.
• To meet the customer demands, the
inventory is control by forecasting for
example using Materal resource
planning (MRP).
• In ABS company, the completed
assembled ABS is produced by JIT (Just
In Time).
• ABS will assemble when the production
get customer’s order.

43. SUPPLY CHAIN OF ABS SDN. BHD.
suppliers
• Suppliers supply raw materials and outsource components
to the facility.
• Then ABS is produced in facility before distributed to the
store and hotel, and sell them to the customer.

44. FORECAST
Simple Moving Average
Five-month moving average
smooths out fluctuations to a
greater extent than the three-month
moving average
Period Month Orders
Three-month Five-month
Moving Average Moving Average
1 November 2560
2 December 2680
3 January 2700
4 February 2550 2646.67
5 March 2680 2643.33
6 April 2660 2643.33 2634
7 May 2740 2630.00 2654
8 June 2580 2693.33 2666
9 July - 2660.00 2642

45. FORECAST
Exponential Smoothing
The forecast using higher
smoothing constant, α = 0.60
seems to react more strongly to
changes in demand than does
the forecast with α = 0.40
Period Month Demand
Forecast, F_(t+1)
0.4 0.6
1 November 2560
2 December 2680 2560.00 2560.00
3 January 2700 2608.00 2632.00
4 February 2550 2644.80 2672.80
5 March 2680 2606.88 2599.12
6 April 2660 2636.13 2647.65
7 May 2740 2645.68 2655.06
8 June 2580 2683.41 2706.02
9 July 2642.04 2630.41

46. Forecast Accuracy (MAD and MAPD)
αi =0.6 αi =0.4
MAD (Mean Absolute Deviation):
= 87.86
MAPD (Mean Absolute Percentage
Demand):
= 0.0291 or 2.91%
MAD (Mean Absolute Deviation):
= 85.93
MAPD (Mean Absolute Percentage
Demand):
= 0.0284 or 2.84%
Period
Demand,
Dt
Forecast, Ft Error, et Dt -
Ft](αi =0.6) (Dt - Ft)
1 2560
2 2680 2560 120.00 120.00
3 2700 2632 68.00 68.00
4 2550 2672.8 -122.80 122.80
5 2680 2599.12 80.88 80.88
6 2660 2647.65 12.35 12.35
7 2740 2655.06 84.94 84.94
8 2580 2706.02 -126.02 126.02
21150 117.35 614.99
Period
Demand,
Dt
Forecast, Ft Error, et
Dt - Ft]
(αi =0.4) (Dt - Ft)
1 2560
2 2680 2560 120 120
3 2700 2608 92 92
4 2550 2644.8 -94.8 94.8
5 2680 2606.88 73.12 73.12
6 2660 2636.13 23.87 23.87
7 2740 2645.68 94.32 94.32
8 2580 2683.41 -103.41 103.41
21150 205.1 601.52

47. INVENTORY MANAGEMENT
ABS Demands

48. INVENTORY MANAGEMENT
Inventory Control Systems
(Continous Inventory Sytems)
ABS company use Continous Inventory Sytems in control
inventory. It also referred as as perpetual systems, a continual
record of inventory level for every item is maintained.
The advantages of this system are :
Allows for Accurate Restocking
Uncovers Shrinkage and Theft
Produces More Accurate Interim Financial Statements
Closer Management of Inventory Levels

49. MRP (Material Resources Planning)
Main objective of this system to ensure that material is
available when needed- which can easily lead to
tremendous investment of funds in unnecessary
inventory and at the same time maintain lowest
possible level of inventory.
INVENTORY MANAGEMENT

50. In MRP of ABS company, there are three major inputs:
A. Master production schedule
B. Product structure file
C. Item master file
ABS Push
Button
On hand 500
On order (sch receipt) 3000
LLC 0
Lot size Min 3770
Lead time 1

51. MRP Computation
• Since that ABS company apply
Continous Inventory System, the
way for determining how much
to order in this system is Basic
EOQ model.
• function is to determine the
optimal order size that
minimizes sum of carrying cost
and ordering cost.
MPS item
Period
1 2 3 4
ABS push button 2560 2680 2700 2550
d = (2560+2680+2700+2550) / 4 = 2662.50
Carrying cost, Cc = RM 1.50/unit
Ordering cost, Co = RM 4000/order
𝐸𝑂𝑄 =
2𝐶𝑜 𝑑
𝐶 𝐶
=
2(4000)(2662.50)
1.50
= 3768.30 ≈ 3770 units

52. Item: ABS LLC: 0 Period
Lot Size: EOQ 3770 LT: 1 1 2 3 4
Gross Requirement 2560 2680 2700 2550
Scheduled Recipts 3000
Projected on hand 500 940 2030 3100 550
Net requirement 1740 670
Planned order receipts 3770 3770
Planned order releases 3770 3770
MRP Computation(continued)
Item master file
ABS Push Button
On hand 500
On order (sch receipt) 3000
LLC 0
Lot size Min 3770
Lead time 1
MRP matrix
940 units on hand is not enough
to cover the demand of 2680
units at period 2
need to planned order at
minimum 3770 units as
calculated at EOQ.

53. MRP Computation(continued)
Planned order report
Period
Item 1 2 3 4
ABS push button 3770 3770
Total cost of EOQ Iis calculated as shown below :
= (
𝐸𝑂𝑄
𝑑
𝑥 𝐶𝑜) + ( 𝑢𝑛𝑖𝑡 𝑝𝑟𝑜𝑗𝑒𝑐𝑡𝑒𝑑 𝑜𝑛 ℎ𝑎𝑛𝑑)𝑥 𝐶𝑐
= (
3770
2662.50
𝑥 4000) + ( 940 + 2030 + 3100 + 550)𝑥 1.50
= RM 15593.85

54. QUALITY
CONTROL &
QUALITY
ASSURANCE

55. ABS SDN. BHD QUALITY POLICY AND
OBJECTIVES
Quality Policy
Quality Objectives
It is the policy of ABS Sdn. Bhd to maintain customer satisfaction by
delivering defecs free products on time, everytime while respecting all
legal requirements that concerning the manufacturing of our products
by implementing Total Quality Management (TQM) to comforming
requirement quality standards EN ISO 9001:2008
• Maintain preferred main supplier status in respect of bed stretcher in
Malaysia.
• Produce ABS and other components of ABS zero defect.
• Ensuring customer satisfaction on quality of goods and services.
• Optimizing output in all processes particularly in operation processes.
• Ensuring timely and accurate delivery to customer.

56. TQM’S PRINCIPLES AND TOOLS

57. TQM : PINCIPLES AND PRACTICES
• Customer focus : The customers determine what quality is. There
are two types of customers that are :- (a) internal customer (b)
external customer.
• Continous Process Improvement : The process in the manufacturing
line is always need the improvement that can reduce the product
lead time and reduce or eliminate non added activities in the
process.
• Total Involvement : Which is a culture that embraces the
view of quality in all aspects of the bussiness. This requires a
commitment at all levels of our company, from the very top to the
very bottom.

58. TQM : Tools and Techniques
• SPC (Statistical Process Control)
- Check Sheet
CHECK SHEETS
Product : Gear Date :
Stage : inspection ID : die casting
Number inspected : 789 Inspector/Operator :
Noncomformity type Check Total
shrinkage 25
porosity 22
hot tears 16
wash 12
scab 10
blister 7
others 6
Total : 98

59. - Pareto Chart

60. - Cause and Effect Diagram

61. Flow chart

62. TQM : TOOLS AND TECHNIQUES (NON-
QUANTITATIVE)
ABS Sdn. Bhd planning to
implement an ISO 9001 system
about 6 to 18 months after
plant setup. Plan for at least six
months of implementation or
practice to allow sufficient time
to collect enough records on
ABS and verify production
system is working.
Utilizes the entire work force to
obtain the optimum use of
equipment.
The technical skills in TPM are:
• daily equipment checking
• machine inspection
• fine-tuning machinery
• Lubrication
• troubleshooting and repair.
In order to improve the quality
of the product, it need well
planned manage operations
from input transform into
output.
The seven MP tools, listed in an
order that moves from abstract
analysis to detailed planning,
are:-
i. Affinity Diagram
ii. Relations Diagram
iii. Tree Diagram
iv. Matrix Diagram
v. Matrix Data Aanalysis
vi. Arrow Diagram
ISO 9001:2008 TPM (Total Productive
Maintenance)
Management and
Planning Tools

63. QUALITY CONTROL AND QUALITY ASSURANCE
Quality Department
Quality Assurance
(ensuring quality in the processes
by which products are developed)
Roles of QA :-
-determining, negotiating and
agreeing in-house quality procedures,
standards and/or specifications
- assessing customer requirements
and ensuring that these are met
- setting customer service standards
- specifying quality requirements of
raw materials with suppliers
- investigating and setting standards
for quality/ health and safety
Quality Control
(ensuring quality in products. The
activities focus on identifying defects
in the actual products produced)
Roles of QC :-
- make sure that everything from
raw materials to finished products
meets quality and safety standards
specified in the purchasing
documentation.
- inspect products purchased by their
company from suppliers and
maintain records of supplier
performance.
- check and test samples of a product
- keep records of all the tests they
have carried out

64. Raw material : acceptance sampling
Outsource components : 100%
inspection
Visual inspection - Gear Test.
Welding inspection
- Final inspection.
(electronic test)
@
(fuctional test)
Quality Control
Testing
and Inspection

65. Quality Control Testing and Inspection
i. Acceptance Sampling
• Inspect raw material (PVC, PP/PE, cast iron) and outsource components at incoming
inspection.
• A random sample is taken from a large quantity of raw
materials and components and tested or measured relative to the quality
characteristic of interest.
• If the sample passes the test, the entire quantity of materials or components are
accepted.
• If the sample fails the test, the entire quantity is returned to
the supplier. CHECKSHEET OF INCOMING MATERIALS
GENERAL INFORMATION
NAME : DATE:
STAGE :
MODEL:
INSPECTION/ TESTING
PASS FAIL Comment
1. Density of plastic
2. Moisture content of material
Checksheet of incoming inspection of raw materials.

66. ii. 100% inspection (visual inspection)
When the product is come out from the
machine, the operator can make
inspection visual to detect defects, such as:
• Short shot
• Sink mark
• Burn mark
• Blisters
Injection molding parts

67. iii. Gear test (100% inspection)
• Factors to be checked :-
i. Linear tooth dimensions (thickness, spacing, depth)
ii. Tooth profile
iii. Surface roughness
• Gear-tooth vernier callipers is one of the instrument to
measure thickness of gear teeth.
• Have CNC gear inspection machine, to inspect the gear.
More factors can quickly measure using this machine
(circular pitch, involute profile, tooth spacing, variation in
pressure angle)
• Besides that, the pyhsical appearance of gear also inspect
by visual to detect those defects from die casting process:-
i. Shrinkage
ii. Porosity
iii. Scabs
iv. tear CNC gear inspection machine
Spur gear by die casting

68. iv. Welding inspection
a. Nondestructive test
i. Visual test
examines bead appearance, width and thickness; welding
defects such as undercut, overlap, cracks, pits, and slag
inclusions in the surfaces of the welds
ii. Penetrant test (PT)
The penetrant test uses fluorescent or red penetrant to visualize
defects that open to the surface of a weld zone, such as cracks
and pits.
b. Destructive test
Impact test
For examining the fracture toughness of a weldment
Spur gear is welded with cable
holder by SMAW

69. V. Final product inspection
Electrical
source
The assembled ABS, will connect to the push and
electrical source to inspect either ABS is fuction or
not
If yes, it will send to the packaging stage. If not
pass, will rework .

70. WARRANTY
Assumptions : use twice a day
In one year = 360 days
Thus, 360 days x 2 = 720 times
• The ABS will checking by push the button for 720 times
to know either ABS will fuction or not untill the 720th to
give warranty for ONE YEAR.
• If there are any defects, malfunction of ABS along the
warranty period, customer can return back ABS to the
factory with zero payment and NO delivery charge to
repair it if possible or change it with new one ABS.
Warranty = I YEAR

71. Continous Improvement
• Continous improvment to improve quality.
• Practical management system based on trial-
and-error experiences in eliminating waste and
simplify operations.
Kaizen
• Technique for finding the root cause of the
problems that occur.5 Why
• Five Japanese words: seiri, seiton, seiso,
seiketsu, and shitsuke.
5S
• Japanese word meaning "futility;
uselessness; idleness; superfluity; waste;
wastage; wastefulness“.
• Detect the wastage to improve the quality
and increase productivity.
Muda

72. MARKETING &
BUSINESS PLAN
HOW DO WE
APPROACH THE
MASS TO BUY OUR
PRODUCT
SEGEMENTATION,
TARGETTING
& PLACEMENT
(STP)
4P MARKETING MIX

73. ABSASABRAND
SLOGAN GIVES UPBEAT FEEL
DESIGNED FOR CONVENIENCE.

74. HOW DO ABS
SDN BHD
APPROACH
THE MARKET?

75. SEGMENT, TARGET AND POSITION (STP)
SEGMENTATION AND
TARGETTING
• DEMOGRAPHIC
• URBAN AREA
• MIDDLES CLASS PEOPLE
POSITIONING
START WITH NEW VENTURE
(1ST OF A KIND) PRODUCT AT
AFFORDABLE PRICES

76. 4P MARKETING
MIX OF ABS
SDN BHD

77. INITIALLY START WITH 1 PRODUCT CATEGORY
LOOKING TO EXPAND PRODUCT TO NEW
PLATFORMS FOR COMPATIBILITY FOR USE IN
PROSPECTIVE NEW SECTORS HOSPITAL HOTEL
MODIFIED TO SPECIFICATION

78. TYPE OF PRICING
PRODUCT BUNDLING PRICING
PROMOTIONAL DISCOUNTS
START FIRSTLY WITH ACCEPTABLE PRICE TO REACH
CUSTOMERS
AIMED TO TARGET PEOPLE WITH MIDDLE TO UPPER
INCOME CLASS

79. CHAIN OF STORES AT MALLS IN MAIN CITIES
DISTRIBUTED FROM MANUFACTURING PLANT IN
BANDAR TEKNOLOGI KAJANG
AVAILABLE IN BULK DIRECT FROM FACTORY

80. PRODUCT ADVERTISING
NEWSPAPER
MAGAZINE
INTERNET
BILLBOARDS
CORPORATE
ADVERTISING

81. NEWSPAPER & MAGAZINES

82. NEWSPAPER & MAGAZINES
PROMOTE NEW PRODUCT THROUGH
MAINSTREAM PAPERS AND MAGAZINES
UTUSAN, SINAR HARIAN, URTV,
KOSMOPOLITAN

83. INTERNET

84. INTERNET
TWO OPTIONS
FREE MEDIUMS
INSTAGRAM, FACEBOOK, BLOGSPOT
PAID MEDIUMS
GROUPON, EXTENSIVE ONLINE MARKETING
THROUGH FACEBOOK AND BLOGGING TO REACH
CUSTOMER FASTER THAN CONVENTIONAL (FREE)
METHODS)

85. BILLBOARDS

86. BILLBOARDS
BILLBOARDS
IN MALL
ON HIGHWAY
ADVERTISING WILL BE DONE IN:
MAIN MALLS IN THE CITY
MAIN CITIES

87. C ORPORATE ADVERTISING
The main outcome of Corporate advertising are
INCREASE IN SALES, next to CREATE A STRONGER
REPUTATION as the best corporate advertising creates
goodwill and enhances reputation by letting constituents in
on what the organization is all about, particularly if it does
beneficial things people are not aware of.

88. COST ESTIMATION &
BREAKEVEN ANALYSIS
Direct Cost Indirect Cost Profit
Margin
Breakeven
Analysis
ROI

89. Raw Material Unit Unit cost
(RM)
Estimated
cost (RM)
PVC Resin kg 5.00 0.30
PP Resin kg 5.00 0.35
PE Resin kg 5.00 0.35
Cast Iron kg 3.00 0.15
TOTAL 1.15
Purchased Part Unit price (RM) Quantity Estimated cost
(RM)
Alligator Clips 1.00 2 2.00
DC Motor 60.00 1 60.00
Switch Button 0.10 1 0.10
Aluminium plate 0.50 1 0.50
Bolt 0.10 2 0.40
Nut 0.10 2 0.20
Cable 3.00 4 12.00
RAW MATERIALS
OUTSOURCED

90. Hence, the direct labour cost per unit will
be
= 303600/32609
= RM 9.31
Department No. of
Workers
Monthly Salary
Per Worker
(RM)
Total
Monthly
Salary
(RM)
Total
Annually
Salary
(RM)
Die Casting 4 800.00 3200.00 38,400.00
SMAW 2 800.00 1600.00 19,200.00
Injection
molding
6 800.00 4800.00 57,600.00
Assembly 6 800.00 4800.00 57,600.00
Quality control 5 1500.00 7500.00 90,000.00
Production 2 1700.00 3400.00 40,800.00
TOTAL 27 29,300.00 303,600.0
0
Total material cost = Direct material cost +
Outsource part cost + Indirect material cost
= 1.15 + 75.20 + 0.40
= RM 76.75
Direct prime cost = Total material cost +
Direct labor cost + Incentive cost
= 76.75 + 10.78 + 1.00
= RM 88.53
DIRECT LABOUR COST

91. •Factory Overhead
•Water and Electricity
•Maintenance
•Safety Equipment
Types of Overhead
Monthly Cost
(RM)
Annual Cost
(RM)
Electricity (proportion) 5,000.00 60,000.00
Water (proportion) 200.00 2,400.00
Gas for forklift 200.00 2,400.00
Petrol & diesel (for van &
lorry) 1,000.00 12,000.00
Maintenance, service and
waste disposal
900.00 10,800.00
Safety equipment 2,100.00 4,200.00
Medical fee 350.00 4,200.00
Factory /JKKP license 300.00 300.00
TOTAL
162,300.0
0
INDIRECT COST

92. Sales and Marketing
Marketing Expenses Criteria Price
Newspaper  Advertise through mainstream newspaper 200,000.00
Magazine  Advertise through ads column 200,000.00
Billboards  Place ad on billboards on strategic locations 200,000.00
Brochure, Banners and Catalogue 50,000.00
Business cards 10,000.00
Exhibition  Participate in innovation conventions or programmes
 Shopping complex
100,000.00
Corporate Advertising  Focus on the company
 For product introduction purposes
200,000.00
Internet  Promote product at discounted prices at limited time to
promote and introduce product faster to target groups
 Groupon, MyDeal
100,000.00
Travelling Expenses  Expenses
 Petrol
 Parking and related costs
60,000.00
Overall Total 1120,000.00
MARKETINGEXPENSES

93. Asset Subtotal Cost
(RM)
Annual
Depreciation Rate
Annual Depreciation
Cost (RM)
Machinery 364,430.00 10% 36,443.00
Mould & Die 165,600.00 10% 16,560.00
Tool & Equipment 214,280.00 10% 21,428.00
Computer and software 30,000.00 10% 3,000.0
Furniture 7,020.00 10% 702.00
Office electrical equipment 10,989.00 10% 1,098.90
Vehicle 54,875.00 10% 5,487.50
Initial cost & Renovation 29,000.00 10% 2,900.00
TOTAL ASSET COST 876,194.00 10% 87,619.40
INITIAL ASSET & DEPRECIATION COST

94. Types of Expenses Monthly Cost (RM) Annual Cost (RM)
Electricity 7000.00 84,000.00
Water 334.65 4015.80
MRP license cost Annually 17,400.00
Factory insurance Annually 20,245.00
Medical fee 600.00 7,200.00
Staff welfare & refreshment 200.00 2,400.00
Office Charges 650.00 23,400.00
Secretarial fee 200.00 2,400.00
Accounting fee (annum basis) Annually 6,000.00
TOTAL 161,660.80
TOTAL OTHER ASSETS

95. Cost (RM)
Asset and Initial Renovation 876,194.00
Factory acquisition (10% of actual price) 450,000.00
Expected cash required for first 3 months (RM 3,850,774.61/12 x 3) 962,693.65
Working Capital 2,288,887.65
Total yearly cost = Total manufacturing cost + Total expenses Depreciation cost
= 3,355,839.01 + 582555.00 87,619.40
= RM 3,850,774.61
WORKING CAPITAL

96. We decided to apply for loan from SME Bank under TERAS
Financing Scheme. (Collaborative effort with TERAJU in
financing eligible Bumiputera SME companies under TERAS
and Non Teras program)
LOAN DECISION
http://www.smebank.com.my/sme-financing/sme-programmes/business-premises-financing-scheme-2/
TERAS Financing Scheme

97. Items Maximum Margin of Financing
Landed Factory building / business premises Up to 90%
Purpose & Margin of Financing
a) Purchase of Assets (Landed property only)
Items Maximum Margin of Financing
Working Capital, Bank Guarantee, Plant / Machinery, Vehicle &
Renovation
Up to 100%
b) Working Capital, Bank Guarantee, Plant/Machinery, Vehicle & Renovation
Items Amount
Landed Factory building / business premises Maximum of RM10.0 million per customer.
Working Capital, Bank Guarantee, Plant / Machinery,
Vehicle & Renovation
Maximum of RM5.0 million per customer.
Financing limit

98. AMOUNT OF LOAN PAYMENT

99. The profit margin is calculated based on first year expected sales volume and selling pri
RM150.00.. Recall back our sales volume of 32609 units in the first year, then:
Sales Revenue = RM 150.00 x 32609
= RM 4,891,350
Total cost = Total manufacturing cost + Sales and marketing expenses + Depreciation cos
= 3,355,839.01 + 1112000 + 87,619.40
= RM 3,355,839.01
𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =
𝑆𝑎𝑙𝑒𝑠 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 − 𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡
𝑆𝑎𝑙𝑒𝑠 𝑅𝑒𝑣𝑒𝑛𝑢𝑒
=
4,891,350 − 3,355,839.01
4,891,350
= 𝟎. 𝟑𝟐 OR 32% FOR THE 1ST YEAR
PROFIT MARGIN

100. FORECASTED SALES
Year
Selling Price/Unit
(RM)
Sales Volume
(unit)
Sales Revenue
(RM)
2014 150.00 32609 4891350.00
2015f 170.00 34000 5780000.00
2016f 210.00 36000 7560000.00
2017f 230.00 38000 8740000.00
2018f 250.00 39000 9750000.00

101. FORECASTED SALES
Year
Selling
Price/Unit
(RM)
Sales Volume
(unit)
Sales Revenue
(RM)
Manufacturing
Cost (RM)
Total Expenses
(RM)
Loan Interest
(RM) Total Cost (RM) Profit/Loss (RM)
2014 150.00 32609 4891350.00 3,335,839.01 2,140,700.77 818,828.17 6295367.95 -1404017.95
In the 1st year, there is no profit (but loss) generated. Tax is not
calculated in the 1st year. According to Lembaga Hasil Dalam
Negeri website portal, 25% tax is required.

102. FORECASTED SALES
Taking into account tax deduction from the balance every
year the company generates profit:
Year
Selling
Price/Unit
(RM)
Sales Volume
(unit)
Sales
Revenue
(RM)
Manufacturing
Cost (RM)
Total Expenses
(RM)
Loan Interest
(RM) Total Cost (RM)
Profit/Loss
(RM) Tax deduction
2014 150.00 32609 4891350.00 3,335,839.01 2,140,700.77 818,828.17 6295367.95 -1404017.95
2015f 170.00 34000 5780000.00 3,046,974.00 1,565,051.40 818,828.17 5430853.57 349146.43 87286.6
2016f 210.00 36000 7560000.00 4,131,005.00 1,612,105.55 818,828.17 6561938.72 998061.28 249515.3
2017f 230.00 38000 8740000.00 5,239,968.00 1,656,436.36 818,828.17 7715232.53 1024767.47 256191.8
2018f 250.00 39000 9750000.00 6,521,531.00 1,702,303.72 818,828.17 9042662.89 707337.11 176834.2

103. 0.00
2000000.00
4000000.00
6000000.00
8000000.00
10000000.00
12000000.00
0 1 2 3 4 5 6
RM
Year
Break-Even Graph
Revenue
Cost
-2000000
-1500000
-1000000
-500000
0
500000
1000000
1500000
2014 2015f 2016f 2017f 2018f
Profit/Loss(RM)
Year
ABS Sdn. Bhd. Profit & Loss

104. RATE ON RETURNS (ROI)
Total net profit after 5 years = RM 3,219,712
Annual net profit = RM 643,942
ROI ON INITIAL CAPITAL INVESTMENT
= 643,942/2,288,887.65
= 0.28

105. SUSTAINABLE
DEVELOPMENT
Life Cycle
Assessment
Sustainability
in Facilities
management
Sustainability in
Manufacturing
Sustainability in
Supply Chain
Sustainability in
Marketing
Strategy
Waste
Management:
3R

106. LIFE CYCLE ASSESSMENT OF ABS

107. SUSTAINABLE SUPPLY CHAIN
maximizing the economic viability of
recycling, where feasible
proactive identification of potential supply
and material alternatives.

108. SUSTAINABILITY IN FACILITIES MANAGEMENT
.
Use electricity in smart way
Avoid wastage in water usage
Recycle waste (product scrap)

109. SUSTAINABLE MANUFACTURING
Analyzing and re-engineering production systems to eliminate
wasted motion, materials and energy consumption . (SW)
Implementing strategies to drive out waste across all areas of
production. (e.g: lean manufacturing )

110. SUSTAINABILITY MARKETING STRATEGY
Marketing campaign
will be done mainly
through electronic
medium or mass media,
instead of just using
stand alone methods
such as :-
Banners
Flyers

111. WASTE MANAGEMENT : 3R
Reduce the total amount of waste
that goes into the waste dump, it is
important to first reduce the
volume of waste generated.
Reuse existing materials.
Example : external housing
can be reuse as flower pot.
Recycle the materials.
Example : recycle the recycleable
materials. (e.g raw material for external
housing is PP/PE that can be recycle.

112. SUGGESTION & FUTURE PLAN
TO ENSURE OUR SUSTAINABILITY AND ABILITY TO STAY
COMPETITIVE WITH OTHER COMPANIES, WE PLAN TO EXPAND OUR
BUSINESS AS THE FOLLOWING:
• IN ORDER TO INCREASE PRODUCTION CAPACITY, HIRE MORE WORKER AND
INCREASE MACHINE EFFICIENCY
• EXPAND OPERATION USING EXISTING MACHINES TO BECOME A SUPPLIER OF
OUR MANUFACTURED COMPONENTS, E.G GEARS
• MAINTAIN GOOD RELATIONSHIP WITH RELIABLE SUPPLIER TO ENSURE
CONTINUITY IN SALES
• DIVERSIFY PRODUCT TO WIDER RANGE OF USE AMONG PROSPECTIVE
CUSTOMERS; E.G DOUBLE BED, HOSPITAL, HOTEL
• CREATE NEW LINE OF PRODUCT USING EXISTING EQUIPMENT IN PLANT; E.G
CURTAIN STRETCHER OR ADD FEATURES TO EXISTING PRODUCT

113. • Our product is a new venture, one of a kind
product that can deliver to its promises given
that the proper planning is done:
• Marketing strategy
• Facility planning & Inventory management
• Sustainability
• Costing & Financing
• Despite requiring high capital cost, this
company are able to breakeven in the 3rd year
using our projected model of sales & costing
CONCLUSION

114. THANK YOU