Blueprint Senior 2

UNIVERSITI TEKNOLOGI MARA MALAYSIA FACULTY OF APPLIED SCIENCE

PRODUCT PROTOTYPE: M & M VENDING MACHINE

PROGRAMME BACHELOR OF FOOD SCIENCE & TECHNOLOGY (AS226) GROUP AS2035M COURSE ENT 600 : TECHNOLOGY ENTREPRENEURSHIP PREPARD FOR: PROF. DR. ISMAIL BIN AB. WAHAB PREPARED BY: NAME

MATRIX NUMBER

NUR AQILA AMALINA BINTI JA’AFAR

2011477392

NURFARAHIN BINTI HISHAMMUDDIN

2011273306

SITI AISYAH BINTI MOHAMED USUF

2011663698

SITI SALIHAH BINTI SALEH

2011266828

M & M Vending Machine Table of Content No

Contents

Pages

1.0

Executive Summary

2.0

Product Description

3.0

2.1 Purpose of Vending Machine 2.2 Unique Features 2.3 Operation Technology Description

4 4-5 5–6 7

3.1 Main Component 3.1.1 Storage chiller

8 8 8 9 9 9 9

3.1.2 Conveyor belt and shaft 3.1.3 Infrared oven 3.1.4 Nozzle

4.0

5.0

3.1.5 Signaling 3.1.6 Receipt 3.2 Product Expansion Market Analysis & Strategies 4.1 Customer 4.2 Market size 4.3 Competitors 4.4 Market share 4.5 market strategy

3

9 – 10 11 11 12 13 13-14

Management Team 5.1 Organization 5.2 Key Management Personal 5.2.1 Career Highlight

15 16 16 17

5.2.2 Duties and Responsibilities

6.0

5.3 Management Compensation and Ownership

18

5.4 Supporting Professional Advisors and Services

18

Financial Estimates 6.1 Start up costs 6.2 Working capital

19 20

7.0

Project Milestone

21

8.0

Conclusion

22

9.0

Appendices

23

Page 2

M & M Vending Machine

SECTION 1 EXECUTIVE SUMMARY Smart Vending Machine will provide a delightful and healthy Hot dog and Pizza to the public community located in certain areas such as bus station, railway station, and colleges in Malaysia. In each part of those two foods, there will have a variety of choices according to customers demand, including Vege sausage, BBQ sausage, pepperoni pizza, Vege pizza and so on. We will penetrate the vending industry with innovative, first to market, and high technology vending machines. We will establish our own vending machine routes in Peninsular Malaysia region that have functions and advantages not found in today's common vending machines, thus providing a competitive advantage over more established competitors.. Our product is emphasized on supplying high quality breakfast and supper products which are ready to eat after been microwaved. Indirectly , this encourage people to take a breakfast in the morning with minimum time spend as it is the crucial and important meal. In the vending machine there are several important components such as the storage chillers for the foods storage at a suitable environment, conveyer system for the movement of the food from one compartment to another, shaft that separate each compartment and also the infrared oven as the heating element in the vending machine. We will penetrate the vending industry with innovative, first to market, and high technology vending machines. We will establish our own vending machine routes in Peninsular Malaysia region. Our product is emphasized on supplying high quality healthy fast food products which are ready to eat after been reheat. Our product is designed to encourage people to take breakfast in the morning and supper in midnight with minimum time spend as it is the crucial and important meal.

Besides, our product prepares hygienic and healthy foods to the

consumer. Our product is targeted to everybody. Most vending machines in Malaysia only provide soft drink beverages. But our vending machine is the number one service that supplies food for breakfast. Our main highlight here is healthy fastfood with hot and ready to eat meals. The reheat frozen foods required minimum time to ready and consumers can enjoy it freshly as

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SECTION 2 PRODUCT DESCRIPTION Currently, the phenomenon of most Malaysian people has a tendency to skip their breakfast has gradually increased. The main reason of them to skip their breakfast due to lack of time to prepare breakfast that may require some times. In order to get a healthy lifestyle, Malaysians need to change their habit by taking breakfast everyday. Besides , Malaysians always facing problem of hunger during midnight and unfortunately, most of the stalls are close during that time.

2.1 PURPOSE OF VENDING MACHINE By taking the advantages toward this situation, new vending machine has been invented with special features. Our vending products restricted on breakfast and supper menus which are microwavable.The menus selected are Hot dog and pizza. The purposes of this vending machine are: -

to provide fast and healthy food for morning (breakfast) and midnight (supper) .

-

to provide the variety and accessibility of food during morning and midnight.

-

to ensure that the calorie intake by individual are under

2.2 UNIQUE FEATURES The vending machine also called Smart Vending Machine because it has the ability to calculate the calories intake by individuals. For the purchasing activities, it is done by multiple techniques, either by cash or using Touch ‘n Go card. For the Touch ‘n Go users, they need to top up their cards at the nearer places.

Page 4


Our vending machine consists of three important parts which are: 

The chiller- The chiller functions to keep the microwavable products in cooled conditions. The chiller temperature is around 3 to 5°C. It keeps the food fresh without thawing.



The microwave- The microwave functions to heat the microwavable foods at the lowest time. The temperature of the microwave is set at 65°C upon using. The microwave will be automatically set when the food enters it. The length of time required to heat the food is 2 to 3 minutes.



Monitor- This part will display the advertisement of foods that will be produced which will then give the sense of attractiveness to the consumer.

2.3 OPERATION

The chiller will store the foods at cold temperature. When an order is placed, the machine will send the food from the chiller to the microwave, microwave the food for a pre-determined time at pre-determined temperature. In approximately 2 minutes, a fresh, delicious, hot meal is served.

Raw materials of vending machine:

Galvanized steel- material made for the bulk of the machine ranging from 10 gauge to 22 gauge in thickness. The thicker gauges are used for the outside cabinet, external doors, and internal tank. Thinner gauges are used for internal doors and plates.

Lexan- a tough polycarbonate plastic, is used in the front panels of the vending machine. Sheets of Lexan in vending machines usually range from 0.13 in (3.18 mm) to 0.25 in (6.35 mm) in thickness. Lexan is very difficult to break, flame retardant, Page 5

M & M Vending Machine relatively easy to shape, and can be treated to restrict UV rays, light, and heat transmission. Product logos, names, and illustrations are silk-screened on Lexan sheets, which are installed in channels in the doors of the vending machines.

Acrylic powder coatings- colored powders used to "paint" the surfaces of vending machines. The powder is applied in a uniform layer and baked on during the manufacturing process. Acrylic coatings withstand the rigors of weather and abuse better than paints that are applied wet. In addition, acrylic powders more readily meet governmental environmental standards.

Polyurethane foam- provides the insulation for the inside of the vending machine. The foam is blown between the outer cabinet and internal tank of the machine, where it cures into a very tough, rigid material. In addition to thermal insulation, the stiff foam adds structural stability to both the cabinet and tank of the machine.

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SECTION 3 TECHNOLOGY DESCRIPTION M&M is smart vending machines that were advanced from the ordinary vending machine to produce a kiosk technology. The vending machine technology has been widely developed by the established country, especially Japan. This vending machine are suitable with the trends now days as it can prepare a delicious hot foods at faster rate than the having foods at stalls or kiosk. The processes start from when the users add the money. The vending machine was designed to be able to accept only cash and ‘touch n go’ (TnG) card through a scanning method. Then the user will be instructed to select the desired foods by pushing the button provided and the button that light off will indicate that the foods are out of stock. Once the users have selected their foods, the machine will check if the food is available or not. The system will proceed with the menu if the product is available, if not the user are asked again to select other foods. Then the system will directly get the food from the chillers where the food is stored at temperature of 4 to 12ºC. The foods will be brought from the chillers to the oven by the conveyer belt by passing through the opened and closed shaft that link the tunnel from the chillers to the oven. The oven will heat the product at 65ºC for about 2 to 3 minutes. Lastly the product will be pushed through opened and closed shaft by conveyer belt to the placed for user to reached and take the food. If the users are purchasing our hot dog, the system will asked the customer to choose the preferred sauce and adding extra money to purchase. Then the system will be provided with a receipt of the food purchased and the calories of the foods itself.

The main component of the vending machine: a) Storage chiller b) Conveyor system and shaft c) Infrared oven d) Nozzles e) Signalling f) Receipt system Page 7

M & M Vending Machine 3.1 COMPONENTS 3.1.1 STORAGE CHILLER This is the cooling element of the machine that will provide the suitable temperature for the food storage. Optimum temperature range for the food storage is from 3 to 5ºC. This storage chiller is a thermally insulated compartment that allows the heat to be pump (mechanical, electronic or chemical) or transferring the heat from the inside of the vending machine to its external environment. Thus this will ensure that the inside of the vending machine is cooled to a temperature below the ambient temperature of the room. The inside environment of the chillers is very critical as its environment will affect the shelf life of the food s as it help reduces the rate of spoilage of the food.

3.1.2 CONVEYER SYSTEM AND SHAFT A conveyer belt consists of two or more pulleys, with a continuous loop of material of the conveyer belt that rotates about them. One or both pulleys are powered, moving the belt and the material on the belt forward. The powered pulley is called the drive pulley while the unpowered pulley is called idler. The belts consists one or more layers of material and made up of rubber. The shafts that will be opened and closed automatically when the machine is operate.

3.1.3 INFRARED OVEN The heating element used in this machine is the infrared oven. The oven operates by heating the food by bombarding it with electromagnetic radiation in the infrared spectrum causing food molecules to be vibrated thus building up a thermal energy, this process is known as dielectric heating. The infrared radiation will help the heating of the foods to be at a fast rate and efficiently at 65ºC for 2 to 3 minutes. The electronic components and controls consist of timer motors, switches, and relays while other hardware components are made up of a variety of metal and plastic parts such as gears, pulleys, belts, nuts, screws, washers and cables. The important hardware used in the oven are the trays to place the pizza and the roller for the hat dog.

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M & M Vending Machine 3.1.4 NOZZLES For the sauce, the nozzle provided with a 3 nozzle head according to the number of sauce provided. The nozzle can rotate easily to change the head for the preferred sauce. The sauce is kept in an air tight vessel that has a tube that made up of a flexible plastic to suck up the sauce with the aid of the pumping system.

3.1.5 SIGNALLING The vending machine has a direct signal to the HQ to inform the problems arise from the machine. For example if the machine is low in the food stock it will send a signal directly to the HQ to inform the problem and for the HQ to take action by refilled the stock. If there is other problem that arise the HQ will immediately take action to maintain the vending machine to be always serve the customer.

3.1.6 RECEIPT At the end of purchasing of the foods, the customer will be provided with a receipt of the purchase and the calories per serving of the foods. The calories will be displayed along the side of the labelling for each food and as the product have been produced the machine will calculated the calories intake by adding all the purchased foods. The calories are calculated by the system that has been installed. The technology will be improvised in the future with more menus and new technology which module for remote auditing that can check product levels from home. Thus, the technology may also improvise by alerts by email if stock level runs.

3.2 PRODUCT EXPANSION Each product in the market must have a development to advance the machine in order to survive. In the future, our team group projects will make several upgrading or expansion of the machine feature and system. The upgrading will give the machine extra functions to make the machine batter and give more benefit to serve the customers. The other advancement is to develop a LCD touch screens vending machines

Page 9

M & M Vending Machine The future vending machine will be upgraded in this project is the installation of the sensor control system. Example of a sensory system the motion sensors shows digital clock and various animations to attract potential customers it also can produce text, picture and animations in HD quality, but as soon as the potential customer stands in front of the machine and it displays specific adds to the that person. INTERIOR VENDING MACHINE MECHANISM

STORAGE CHILLERS

STORAGE CHILLERS

FOR HOT DOG

FOR PIZZA

INFRARED OVEN Consist of 2 trays:  

HOT DOG RECIEVING DOOR

Roller Flat trays

PIZZA RECIEVING DOOR TUBE NOZZLE SAUCE STORAGE

SHAFT

CONVEYER Page 10


SECTION 4 MARKETING ANALYSIS AND STRATEGIES Informations in this section are provided in order to support the assertion that our product can capture a substantial market in growing industry and stand up to competition. The sections involved under market analysis are:  Customers  Market size and trends  Competition  Market share and sales  Market strategy

4.1 CUSTOMER M & M ( morning and midnight ) vending machine is invented for everybody as it provides a wide range of healthy fast food product. However, the main customer of our product will be the one who has frantic and busy life but wants to get a delicious and mouth feel meal as quick as a flash. Our vending machines are available in many places.Schools and offices sometimes use vending machines as a simple kind of cafeteria. Besides, the management at a store or a hotel mostly decided to have vending machine in order to offer something extra to the customers.Furthermore, to avoid people to have a aching head or roaring stomach, we will provided our vending machine in bus stations, railway station, and airport. Based on the statements above, it is obviously and clearly showed that our product are easily reached and receptive for the Malaysian citizen in all over the national regions.

4.2 MARKET SIZE According to the Department of Statistics Malaysia (2013) the total population of this country is 28 million approximately .The population distribution is highly uneven, with some 20 million residents concentrated in Peninsular Malaysia.70% of the population is urban. Due to the rise in labor-intensive industries, Malaysia is estimated to have over 3 million migrant workers, which is about 10% of the Malaysian population. Hence, based on the statistical

Page 11

M & M Vending Machine data above, it is profitable for using a vending machine in this developing country.

4.3 COMPETITORS In order to establish a market niche and compete effectively, it is imperative for our company to identify the possible competitors as well as their strength and weaknesses.Vending machines were increasingly placed in shopping malls in order to reach out to consumers. Different types of vending machines, such as for packaged drinks vending and packaged food vending, as well as other products vending, such as mobile reload coupons vending, were placed in major shopping malls with high customer flows. F&N Coca-Cola led vending in 2012 with a 4% value share. Machines from F&N Coca-Cola offer soft drinks in metal beverage cans and Polyethylene Terephthalate (PET) bottles. Examples of types of soft drinks offered by the company’s vending machines include carbonated drinks, bottled water and Ready To Drink (RTD) tea. Hence, the wide availability of vending machines provided by F&N Coca-Cola in various public locations, including shopping malls, recreational centers and transport centers, helped the company to maintain its leading position during 2012. However, in Malaysia the usage of vending machine is not as big as Hong Kong and Japan that both with high population density, relatively high cost of labor and limited space. Besides, the usage of vending machine in Malaysia limited to certain types of product such as snacks and beverages as stated earlier. Our products are focusing on healthy instant cooked-food provided with auto-calculated calorie for each product. Hence, it is a pull of opportunity for us to implement the usage of vending food machine to this developing country.

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M & M Vending Machine 4.4 MARKET SHARE The target market of our product is the Malaysian citizens. Thus, the total market size based on this country. Based on your assessment of the advantages of your product or service, the market size and trends, customers, competitors and their products, estimate the share of the market and the sales in units and ringgit that you will acquire in each of the next three years. Remember to show assumptions used.

Product/service Market Share and Sales Year

2013

2014

2015

Market share (%)

30

40

50

Total sales in RM

120 000

450 000

750 000

4.5 MARKETING STRATEGY In the vending machine sales industry, that is a possibility to make a good amount of revenue each year. Candy bar vendors can bring in a monthly income of about $100 per candy machine. In order to see how the sales go,it is a good idea for a us to start out slow and maybe just have three or four vending machine sales in operation. This way, we are not investing a whole lot of money in the vending machines until we know how much profit we will make. Besides, one of our objective is to position M& M on a top rank of vending food machines in Malaysia.M & M will strive to aggressively increase their market penetration. The marketing strategy will seek to first create customer awareness regarding the offered products, develop the customer base, and work toward building strong customer loyalty. The message that M & M Vending offers the best vending healthy fast food machine. This message will be communicated by several methods. The first method is participation in trade shows that will be a valuable resource. The second method will be distributor open houses. The third method is the development and use of M & M Internet website. The last method of communication that M & M Vending will be using advertisements in trade publication.

Besides, our strategies also related to the following approaches which are pricing, Page 13

M & M Vending Machine distribution, advertising and promotion, and customer service. 

Pricing- M & M pricing scheme is designed to be competitive and at the same time

provide M & M and the distributor (when applicable) with a fair margin. 

Distribution- All of the products can be distributed within the Malaysia.



Advertising and Promotion- M & M Vending will employ several different methods

for their advertising and promotion campaign. 

Customer Service- Exceptional customer service is a necessary component for making

this business successful. During the initial stages of the marketing plan development, M & M held several different focus groups with perspective customers. These focus groups were developed out of interactions/introductions made at the regional trade show. The goal of the focus groups was to solicit a significant amount of information from perspective customers. M & M was very careful with the facilitation of the focus groups, attempting to insure that the results were as valid as possible. The groups ranged in size from seven to nine people. The focus groups were video taped to allow M & M to review them more carefully after the fact. Overall, the focus groups provide M & M with a wealth of information that was instrumental for us in launching and growing our business.

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SECTION 5 MANAGEMENT TEAMS This section explain the organization, background of shareholders, key management personnel, primary duties and management compensation and ownership

5.1 ORGANIZATION The following table shows the specialization of individual in our organization and key management Key Management Roles

Name

General Manager

Nur Aqilah Amalina Binti Ja’afar

Administration manager

Nurfarahin Binti Hishamuddin

Marketing Manager

Siti Aisyah Binti Mohamed Usuf

Operational Manager

Siti Salihah Binti Saleh

Table 1: Management team

Our team members are not enough to full some executive role with full-time mode. Therefore, there is an external consultant was hired in order to consult company financial. Our team members still search for candidate that qualify to fill up the financial manager position. By the end of year 2013, the financial consultant will be replaced by full-time member.

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5.2 KEY MANAGEMENT PERSONAL 5.2.1 Career Highlight This section brief the career highlight, duties and responsibilities for our team work

Position

Career Highlight  

Position : General Manager

   

Position : Administration Manager 

 Position : Marketing Manager

    

Position : Production Manager  

Master of Food Engineering studies, Bachelor in Food Science & Technology studies Seminar on Key of Technopreneur by MEDEC, Kuala Lumpur Seminar on business management at Shah Alam Master of Policy and Public Administration, Bachelor in Food Science & Technology studies Seminar on Key of Technopreneur by MEDEC, Kuala Lumpur Seminar on business management at MITC Malacca Master of Marketing and Consumer studies Bachelor in Food Science and Technology Seminar on Key of Technopreneur by MEDEC, Kuala Lumpur Seminar on business management at Kuala Lumpur Master of Food Processing Engineering Bachelor in Food Science and Technology Seminar on Key of Technopreneur by MEDEC, Kuala Lumpur Seminar on Production Career at Johor Bharu

Page 16

M & M Vending Machine 5.2.2 Duties and responsibilities NAME & POSITION

Name: Nur Aqilah Amalina Binti Ja’afar Position : General Manager

DUTIES & RESPONSIBILITIES  Responsible to make sure that the company achieves the goal and objective of the organization  Plan the activities of the company  Accept and make approval of the proposals  Act as leader of company and be responsible to coordinate the subordinates

 Name: Nurfarahin Binti Hishamuddin



Position : Administration Manager

 

 Name: Siti Aisyah Binti Mohamed Usuf

 

Position : Marketing Manager

 

 Name: Siti Salihah Binti Saleh



Position : Production Manager



Deals with the entire administration task and at same time as the Public Relation in the company Responsible of selecting workers in company Act as an assistant manager for the administration side Ensure all the fixtures and fitting always enough for operation Ensure sales target that have been set can be achieved Make research and development Make survey that related to customer satisfaction to increase product quality Plan and evaluate a new marketing strategy Prepare marketing budget

Make sure that the quantity and quality of the product is at highest level Look for the supplier to supply inventories and raw materials Monitor activities related to process of products

Page 17

M & M Vending Machine 5.3 MANAGEMENT COMPENSATION AND OWNERSHIP

The company's project implementation is about RM 275 300. Our team members are agree to contribute the capital which is amount RM 65 000.

Name & Position

Monthly salary

Share of ownership

Amount of Equity investment

Name: Nur Aqilah Amalina Binti Ja’afar RM 3,200

35%

RM 22,750

RM 3,000

25%

RM 16,250

RM 3,000

20%

RM 13,000

RM 3,000

20%

RM 13,000

Position : General Manager Name: Nurfarahin Binti Hishamuddin Position : Administration Manager Name: Siti Aisyah Binti Mohamed Usuf Position : Marketing Manager Name: Siti Salihah Binti Saleh Position : Operational Manager

5.4 SUPPORTING PROFESSIONAL ADVISORS AND SERVICES Our company requires supporting services in term of financial and also certification for our vending machine. Therefore, there were two Professional Advisors that have been selected for our venture Name of Professional Advisors SIRIM QAS International YK Consultancy

Services Provided Certification, inspection and services Financial planning portal

testing

Page 18


SECTION 6 FINANCIAL ESTIMATES Financial plan is the second last section of Technology-based Business Idea Blueprint (TBIB) that describes the financial estimation to make business venture to remain profitable and solvent. Furthermore, financial plan also is a key point in determining whether or not the TBIB is going to be able to attract any investment in the business idea. In this financial plan, it will discuss only on One-time Start- up Costs and Working capital. Start- up cost is the actual amount of money needed to start business venture while working capital is the amount needed to keep it open or operating.

6.1 START- UP COST START-UP COSTS

RM

Moto vehicles

120,000

Business fixtures and equipment

20,000

Machinery

60,000

Installation of fixtures and equipment

20,000

Starting inventory cost

100,000

Offices supplies

1000

Legal and professional fees

5,000

Advertising for opening

1,000

Utility deposits

3,500

Licenses and permits

2,000

Insurance and Road Tax for Motor Vehicle

3,000

Start-Up Costs

335,500

Page 19

M & M Vending Machine 6.2 WORKING CAPITAL Working capital represents the amount of initial expenditure required to finance the daily operation until the business gets its first sale. Besides that, the amount of working capital is dependent upon the period until the firm can generate enough sales to cover its short term expenditure.

WORKING CAPITAL(MONTHLY)

RM

Delivery expenses

500

Salaries and wages

30,000

Rent (building)

2,000

Utilities

2,500

Offices supplies

500

Insurance

2,500

Maintenance

2,000

Raw materials

10,000

Miscellaneous

1,000

Contingencies (5-10%)

2,500

Total working capital

53,500

Page 20


SECTION 7 PROJECT MILESTONE Our target to complete the business venture is within one year. To meet the goal, the monthby-month schedule associated with fix deadline was arranged. TASK 1

2

3

4

5

YEAR 2013 MONTH 6 7 8

9

10

11

12

Review requirement system and suitable characteristic Completion of design and development Completion of prototype Obtaining of sales representative Ordering of materials in production quantities Starting production and operations Receipt and delivery of first sale

Page 21


SECTION 8 CONCLUSION This vending machine are suitable with the trends nowadays that provide the need for consumer with hot and delicious food to be enjoy at time saving. There is no other morning and midnight vending machine that are commercialize widely in Malaysia. We are confident with our product and management to be succeed.

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SECTION 9 APPENDICES Background of Partnership

Name

: Nur Farahin Hishamuddin

Identity Card Number

: 920729-05-5180

Telephone

: 017-2394225

E-mail

: [email protected]

Date of Birth

: 29 July 1988

Age

: 25 years old

Gender

: Female

Marital Status

: Married

Academic Qualification

: Master of Policy and Public Administration, : Bachelor in Food Science and Technology

Skills

: Communication in English,Arabic : Computer skills

Experiences

: Assistant of Administration Manager

Present Occupation

: Administration Manager

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M & M Vending Machine Name

: Siti Salihah Binti Saleh


: 920107-01-6806

Telephone

: 013-7062756

E-mail

: [email protected]

Date of Birth

: 07 January 1992

Age

: 21 years old

Gender

: Female

Marital Status

: Married


: Master of Food Processing Engineering : Bachelor in Food Science and Technology

Skills

: Communication in English : Computer skills

Experiences

: Assistant Production Manager

Present Occupation

: Production Manager

Page 24


: Nur Aqilah Amalina binti Jaafar


: 920203-14-5296

Telephone

: 018-3226811

E-mail

: [email protected]

Date of Birth

: 03 February 1992

Age

: 21 years old

Gender

: Female

Marital Status

: Single


: Master of Food Engineering studies, : Bachelor in Food Science & Technology studies

Skills


Experiences


Present Occupation

: General Manager

Previous Business Experience: - Manager of Rasa Sayang Restaurant.

Page 25


: Siti Aisyah Binti Mohamed Usuf


: 920807-14-6652

Telephone

: 012 5155984

E-mail

: [email protected]

Date of Birth

: 07 August 1992

Age

: 21 years old

Gender

: Female

Marital Status

: Single


: Master of Marketing and Consumer studies : Bachelor in Food Science and Technology

Skills


Experiences


Present Occupation

: Marketing Manager

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Blueprint Senior 2

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