FACULTY OF MECHANICAL ENGINEERING BTMW 4012 TECHNOLOGY ENTREPRENEURSHIP
BMCG (SECTION 9) GROUP ASSIGNMENT: BUSINESS PLAN COMPANY: EZ WATER MANAGEMENT SDN. BHD.
GROUP MEMBERS:
MATRIC NO:
NUR FARAH HANI BINTI NOR ALZAHARI
B041520014
AMIRUL IDDHAM BIN AHMAD FUAD
B041520024
ZARIF HASIF BIN TERMITI
B041520026
CHUA LIAN KAI
B041520019
MUHAMMAD NASRULLAH BIN MOHD NASIR
B041520012
MOHD SUKRI BIN MOH JAA’FAR
B041520008
SUBMITTED TO:
DATE OF SUBMISSION:
MADAM NOR RATNA MASROM
MAY 23rd, 2018
SECTION 1
EXECUTIVE SUMMARY
Nowadays, rain water filter in markets require users to switch on the system first before the filter can start to operate. The consumption of electrical energy for a rain water filter to operate increases the electric bill for a house that use this technology which is not efficient for domestic uses only. The most frequent problem that occurs in rain water filter system is when it gets clogged with trashes that enters the system and cause the functional failure of the whole system. This business plan includes a proposal for a product known as “Self -Cleaning -Cleaning Rain Water Filter” (Secrawfil) that will improve the current rain water filters products available in markets today. Secrawfil is a type of rain water filter that different from others due to its ability to clean the inner system by itself without the need of frequent maintenance as other products required to. The product will be developed and installed outside of the customers’ house or office for for domestic uses as cleaning, toilet flushing and irrigation system. The Secrawfil will operate automatically when rain enters the system. It does not require any electrical energy for the system to start operating and clean itself from trashes and foreign objects because it only uses the gravitational force for the system to work automatically. A fan is installed within the system which is attached with brushes that will push away the foreign objects obje cts when the rain forces the fan blades b lades to make the shaft rotate. The target customers that this product will be sold to are those who want to cut down their electric and water bills, the people who are concern about saving the energy for future generation and also for those who like to have the automated products running in their homes. This product will fulfill the users demand regarding the current rain water filter products available in market nowadays. The company will strengthen up the business within the Peninsular of Malaysia before enlarging the coverage to other countries in Southeast Asia in 2022. The Board of Directors have seen the potential of this product and set the target for the business to grow bigger within these initial years. SECTION 2 INTRODUCTION TO THE COMPANY
EXECUTIVE SUMMARY
Nowadays, rain water filter in markets require users to switch on the system first before the filter can start to operate. The consumption of electrical energy for a rain water filter to operate increases the electric bill for a house that use this technology which is not efficient for domestic uses only. The most frequent problem that occurs in rain water filter system is when it gets clogged with trashes that enters the system and cause the functional failure of the whole system. This business plan includes a proposal for a product known as “Self -Cleaning -Cleaning Rain Water Filter” (Secrawfil) that will improve the current rain water filters products available in markets today. Secrawfil is a type of rain water filter that different from others due to its ability to clean the inner system by itself without the need of frequent maintenance as other products required to. The product will be developed and installed outside of the customers’ house or office for for domestic uses as cleaning, toilet flushing and irrigation system. The Secrawfil will operate automatically when rain enters the system. It does not require any electrical energy for the system to start operating and clean itself from trashes and foreign objects because it only uses the gravitational force for the system to work automatically. A fan is installed within the system which is attached with brushes that will push away the foreign objects obje cts when the rain forces the fan blades b lades to make the shaft rotate. The target customers that this product will be sold to are those who want to cut down their electric and water bills, the people who are concern about saving the energy for future generation and also for those who like to have the automated products running in their homes. This product will fulfill the users demand regarding the current rain water filter products available in market nowadays. The company will strengthen up the business within the Peninsular of Malaysia before enlarging the coverage to other countries in Southeast Asia in 2022. The Board of Directors have seen the potential of this product and set the target for the business to grow bigger within these initial years. SECTION 2 INTRODUCTION TO THE COMPANY
Ez Water Management Sdn. Bhd made collaboration with contractors for the product development. The company focus on designing and developing products that save the energy in their operations. This self-cleaning rain water filter will let the users experience the better way to save money while at the same time, saving the energy for the future generation.
2. 1 Company background
This company will be set up in February of 2019 right after a complete discourse between the shareholders in regards to the bearing of the company that brings the aim to diminish the current issues face by users of the current products in market. The shareholders comprises of six people who are ready to start a new experience in business field that uses the knowledge in engineering and technology to develop and sell the product to the customers. The challenges in developing the product came when it involved the search of suppliers for components and parts that need to be installed according to the design that has been made. The design stage also came into many various trial and error process where it must fit the needs of customer with the availability of the components and parts suppliers that have correct specification and can supply in the large quantity required in development process later. It tooks one year and a half for the company to reach the target after all the experiences gaining process which involved all the shareholders to put themselves in many roles to ensure they know all the processes from designing to selling the product to the customers. Currently, they are 30 customers who agreed to install the Secrawfil in their homes and offices around Malaysia. The company has target to increase the number of employees for installation of the technology and for marketing department for a couple of years ahead.
Figure 2. 1: Company logo.
Table 2. 1: EZ Water Management Sdn. Bhd. company background.
Company Background Name
EZ Water Management Sdn. Bhd.
Vision
To design and develop eco-friendly product
Mission
To improve current products based on users’ demands
Motto
Develops Better Future
Registration No.
4567891-D
Permanent Address
Free Trade Zone Batu Berendam, Batu Berendam, Melaka
Correspondence Address
Free Trade Zone Batu Berendam, Batu Berendam, Melaka
Telephone No.
06-1234567
Fax No.
06-1234568
Form of Business
Partnership
Main Product
Self-cleaning Rain Water Filter
Main Activity
Design, Develop, Install, Sell, Maintain
Registration Date
7 January 2017
Starting Capital
RM300,000
Capital Investment
Nur Farah Hani Binti Nor Alzahari (50%) Amirul Iddham Bin Ahmad Fuad (10%) Muhammad Nasrullah Bin Mohd Nasir (10%) Chua Lian Kai (10%) Zarif Hasif Bin Termiti (10%)
Mohd Sukri Bin Mohd Ja’afar (10%) Ownership Particular
Nur Farah Hani Binti Nor Alzahari (50%) Amirul Iddham Bin Ahmad Fuad (10%) Muhammad Nasrullah Bin Mohd Nasir (10%) Chua Lian Kai (10%) Zarif Hasif Bin Termiti (10%) Mohd Sukri Bin Mohd Ja’afar (10%)
Bank Name
RHB Bank
Bank Details
Loan Bank
Company Account No.
123456789101
2. 2 Business intent
Raining is quite common in our country and rain water filter will help to save lots of water and money. Based on the survey and observation, those people who installed the rain water filter face some issue which is the filter being clogged by leaves or trashes and lead to malfunction of the filter. This problem occurs anytime without witness by the owner then the filter will damage very fast and this results in wasting of money.
2. 2. 1 Product or service offered
Ez Water Management Sdn. Bhd. invented a product with a system that can automatically operate and clean up internal trashes by itself. The system does not require any electricity at all as it uses the natural gravitational force for the system to startup automatically. Besides this product has self-cleaning criteria so it will not easily break down by the halt of any foreign object that enters the system.
2. 2. 2 Market needs
Malaysia is a country without four season but raining frequently happen throughout the year. After some survey conducted, we are confident that every household in Malaysia need to solve the electricity and water billing increment problems. Other than money, household also do not need to worry about the maintenance of the product and the operation of the system. Time can be saved and let the people to focus more on other important jobs.
2. 2. 3 Degree of innovation
This is the first DIY automatic rain water filter ever invented that can ease the house chores in Malaysia and it is a great opportunity for business development since there are no competitors yet in the market. Malaysia rapidly growing country in Southeast Asia should be a land of profit as the working sector tremendously grows as well.
2. 2. 4 Feasibility and profitability
The created product, Secrawfil has no difficulties to be installed at homes and offices. It is economic in size and shape which not necessarily need a large space to install the whole system. The product can direct the filtered rain water to most of the other systems in house as washing machine, toilet flushing tank, car washing purpose and also for plants watering purpose.
2. 3 Growth strategies
In order to achieve the vision, mission and goal of the company, a few strategies have to be planned. The strategies are in term of economic, technology and product services, and marketing strategies. All the strategies should be arranged and plan wisely in order to achieve goal of the company. Milestone of a company should be recorded in order to know how the company has expanded year by year.
2. 3. 1 Financial strategies
This company’s financial resources to develop the product are from individual loan. The capital required to build up this company is RM300,000. A major shareholder contributes 50% of the total amount, while the rest shared between the other five shareholders. The capital required to form this company is moderate. Each member of the shareholders makes a financial loan from a public bank of RM30,000 which is equal to 10% of each shareholder while the major
shareholder contributes half of the initial capital amount. The aim is to ensure there will be sufficient initial capital to achieve a rise in profit in the future.
2. 3. 2 Technology and product development strategies
Ez Water Management Sdn. Bhd. focus on the importance of the technology and product development strategies to secure the quality and user-friendly criteria of our products. Our company aim to create awareness to community on energy saving and use the recyclable resources of rain water for domestic use in their homes. The development of the product requires no electrical system set up or installment. This product completely use no electrical energy and only need the understanding of turbine concept where the force that comes from running rain water into the casing will force the fan to rotate automatically. The result will go to the rotation of the shaft at the center of the system which will brushes away the trashes trapped inside the system as leaves or small rocks from the roof to be taken away from the system. The filtered rain water will be stored inside a tank which will then be distributed to the other system in home. The filtered rain water is not suitable to be consumed by users. It is suitable to be used for non-consumable home purposes as to water the plants, to wash clothes and for washing the car. For users to connect the storage tank with the other systems, a piping system to direct the storage tank to the other systems’ tanks will be installed.
2. 3. 3 Marketing strategies to increase market or mind share
The key to success in powering up the market demands is to increase the product quality to the highest level. The company focus more on improving the functionality and quality of the product to meet the customer demands so that the company and the brand itself will be trusted and the customer will definitely spread the goodness of this products by their own experiences to others around them. A product which has the best quality will give no problem for customers to buy it although it is quite pricey. Furthermore, it needs no scheduled maintenance for customers to spend their money monthly just to make sure the product is working properly.
2. 4 Target markets
In each of every company they usually set their own target market which also applied in our company. As our product can be created anytime with any reusable material, so our company own target market mainly focus on attracting the people that have moderate income. Besides, since our company started in Melaka, the areas of the targeted market are developed area such as Ayeh Keroh, Bukit Beruang and Melaka town which have many housing area. This is because mostly of the people who lived in the city have a high living cost and always leave their home for work during the daytime. They have no time to work on the maintenance of the filter. Hence, the rain water filter offered will make the people interested. Our company has set a target to expand our business to other state out of Melaka after the company based in Melaka is stable. Then, company will slowly try to expand the business
to the
international market. Lastly, our company also targets to attract the water filter contractor that is willing to invest on our product during the process of building the house. They might can be a shareholder or investor that can contribute lots of profit and capital to the company.
2. 4. 1 Business opportunities
After having some research on previous inventor on the filter, there have been important developments in the way how the rain water filter function. Normally, the rain water filter device cost very expensive in the market as the material used is very high tech and high resistance. Other than that, the filter in market now does not have automatic operation. Trash easily clogged on the entrance of the filter causing severe damage to the system. Frequent maintenance needed and waste lots of money on it. If the trashes is big and hard, user may need to rebuy the new filter. It is very important to provide the solution for the customer needs if our company wants to be competitive in the market. The solutions and changes that are innovative can drive the business forward in the future to achieve the company goals. There are a lot of opportunities for Secrawfil since nowadays there are no automatic filter that make life easy and save lot of time.
2. 5 Revenue model
Table 2. 2: Revenue model of EZ Water Management Sdn. Bhd.
Revenue Model
Description
Pros
Cons
Example
Advertising
Depends on
Easily attract
Takes times to see
-
Google
contacts to make it large market of
the result, need
-
Twitter
one of the
potential
high capital and
-
Bing
backhanded
customers,
modal
-
Facebook
wellsprings of
potential
Publishing the
-
Instagram
income. The
secondary
online advertising
-
Website
publicizing
revenue source, in many source
-
Wechat
incorporates
can be seen
might need to be
pennant, backdrop
everywhere
struggled.
and furthermore
and increase
web based
the popularity
-
Installation
-
Via credit
promoting. This company will utilize the web based promoting for the product of Secrawfil. Service
Installing and
Gain trust from Need to hire extra
maintenance
customer for
personnel for
service is
providing the
installation
provided to
installation
service.
customer and
service of the
customer pays for
product..
the product. Installation process takes only few hours Subscription
Deposit or upfront
There will be
Customer must
payment needed
no cheating
prepare enough
to be done before
issue or
cash and pay on
sending the
scammer in
the spot on the day
products to the
buying the
of purchased.
customer. Full
product or
payment could be
cancelling at
made on the day
the last minute.
card -
Via online banking
-
Via debit card
-
Cash on
of installation
2. 6 Operational setup/ plan
In the progress to a better company in the market, business plan and operational setup need to be planned properly, the term operation define the processes and resources that is used to produce the best and highest quality or services as efficiently as possible before the product announce to the public. The operation setup including the location, equipment, labour and process.
2. 6. 1 Location
At the beginning of the business, we have decided to choose Ayer Keroh to start operating our company. This is because the location is at the industrial site. Other than that, setting up at Ayeh keroh also because of most factories and supplies at this area. Near to material supplies factory could save a lot of time and money based on transportation cost. For the product, the company will design itself and assign the manufacturer and supplier to fabricate the product. All of the product will be produced by the factory.
2. 6. 2 Equipment and machine
After discussing with the boards of director, company will decide to import equipment and machine to produce the product. With the technology nowadays, machine helps human to save time and energy and smart in making decision. Computerized machine can be easily setup by programme . Based on design, computer has to install AutoCAD and Solid work software for
design purpose. Machines such as grinder, drill and welder is needed for the system installation and maintenance.
2. 6. 3 Labour
The labour plays the important role in an organisation. They are the one who willing to do all those hard work to ensure the production go smooth. They also the people that will be the one who will deliver the product safely and install the product at the customer’s house. In this business, labour consists of technician, drive, operator and so on. They are the competent person who have skills in their own designated field and make sure the system is going safe and performing well.
2. 6. 4 Process/ operational plan
Production process from producing the product until sold to the customer must be planned well. When designed product has been done and approved by the board, hard part will send to the supplier that cooperate to produce the particular parts. Product done will go through certain quality check and safety check. Once passed the checking, the product will be launched and displayed out on company website or advertisement to let the customer to buy it. Then, interested customer will place the order and the invoice order will then send to the admin of the company. The marketing department will then pass the order to technical department. Technical department will then design the suitable system, install and do the maintenance. Figure 2. 2 shows the process flow chart in operation plan.
Figure 2. 2: Process flow chart.
2. 7 Long term goals of company
Long term goals are compulsory for a new business to secure the company to keep growing in the market. Normally, the short term goals are necessary to achieve the longer term goals. If your long-term revenue goal is to double revenue by the end of the current fiscal year, another example of a supporting short-term goal is to contract an advertising consultant for one month to help you analyze and capitalize on your customer's buying trends. Another short-term goal example is to spend the next month learning your primary competition and brainstorming on what you offer that they don't. You can us this research and design a new advertising campaign that highlights the unique points about your business or products.
2. 7. 1 Brand recognition
Brand recognition refers to the skills that a brand occupied in the mind of the customer and how it is distinguished from the competitor’s products. In order to effectively position our product in customer mind, our company decided to conduct several actions such as creating
unique company’s logo with cloud and rain design to deliver the message of rainy day used product and navy blue to represent the belief of keeping the bad spirit away. Our tagline “Develop Better Future” refers to every design and development of our company can bring life to become higher level in innovative and creative and a better future. Apart from creating unique brand elements, we also emphasize on producing the unique product and provide higher quality service. There is least automated filter product in the current market, so with our outstanding automatic product with affordable price can effectively place a position in our customer’s mind.
2. 7. 2 Growing followers on social media
Nowadays in 20 century, Internet has going viral in the who le world. People are exposing to the high technology world and mostly of the adults having high tech smartphone. Daily swipe or watching advertisement is the main things to attract people to follow the company website. As the customer will read those pops up and social media feeds. If the company does not involve or have a powerful presence on multiple social media platforms, the business will slowly been forgotten and wipe out. Now is the time to change from old new paper style to this fashion platform. Growing followers may not be so quick , but in the sharing by customer who feel the product is useful, they will help us promote and share in the social media. Soon the results will prove that it is worth it. An example, starting out focus on marketing via familiar outlets with like Facebook or Instagram.
2. 7. 3 Listed as influenced company in green technology development over the globe
This has been an exclusive goal for many company. Consider that Ez Water Management as a brand name going to be the talk of the world that always update with the latest technology. People around the world give high expectation toward Malaysian technologies. This can also raise the pride of Malaysia
2. 8 Market and competitors information
Knowing competitors’ identity, what they putting forth, can help organization or company to make the products, service and marketing emerge. It will empower organization to
set prices aggressively and competitively and aid organization to react to equal showcasing efforts with own initiatives.
Monitor the way company competitors do business. List to take note at: 1. Charging fee apply on customers. 2. Delivery and distribute system. 3. Maintenance fee. 4. Products or services competitors provide and how the y market them to customers. 5. What kind of person owns the business and what identity they are. 6. How they promoting and the advertising method. 7. Their customer service and staff numbers. 8. The company annual report- if they are a public company. 9. Their website updates - check their website as well as local newspapers, radio, television and any outdoor advertising. If the company competitors are changing and improving better than us, the main board of directors need to gather up in round table discussion and suggest ideas to make some changes. It might be anything from improving customer service, website promotion, assessing company prices and updating company products and services. Marketing new idea need to be enhanced, and they should give idea on how to improve company literature and website, and changing company suppliers if needed.
2. 9 Strength and weaknesses (SWOT ANALYSIS)
In order to develop a successful company, we also have to find out our strength and weakness that need to improve from time to time. We have done SWOT (Strength, Weaknesses, Opportunities and Threat) analysis on the company and idea. Table below shows the result of analysis and ideas.
Table 2. 3: SWOT analysis. ITEMS
LISTS
Strength
1. The best services are our first priority.
2. Quality of each product at the best. 3. The product is user-friendly. 4. Provide systematic product. 5. Provide efficient product. 6. Less use of manpower. 7. Save time consumption. 8. Affordable price. Weaknesses
1. Need designated space. 2. Need power supply to activate the ARCH. 3. Built in product.
Opportunities
1. This product will attract more contractor to collaborate with. 2. The demand will increase as it ease the person’s life. 3. This company will grow rapidly because many people want to save their time.
Threat
1. New design and functions by competitors. 2. More competitor try to copy the product. 3. Price of the product.
SECTION 3 EMPLOYMENT OF COMPETENT WORKERS
3. 1 Management Team
The management team of the company involves the pioneer person who emphasize that develop the business to make the product to compete in the market. This management team play the important role in the company which are to analyses and identifies the business goals and objectives and implements and enforces the strategies the employees need to achieve success. There are several member that will involves in management team and has their own scopes of work of their position in the organization. The management team of the company business is shown as Figure 3. 1.
Figure 3. 1: Management team organization of the company
3. 1. 1 Chief Executive Officer (CEO)
Figure 3. 2: CEO of EZ Water Management Sdn. Bhd.
Table 3. 1: Personal background of the CEO. Name
Nur Farah Hani Binti Nor Alzahari
I.C Number
950315-01-6242
Date of Birth
March 15th, 1995
Age
23 years old
Gender
Female
Status
Single
Email
[email protected]
Permanent Address
JKR 1310, Blok 2, Tingkat 3, Polis Depoh, 80990, Johor Bahru, Johor.
Academic
Sijil Pelajaran Malaysia (SPM), TiJB
Qualification
Diploma in Mechanical Engineering, UTeM Bachelor of Mechanical Engineering, UTeM
Courses Attended
1. CATIA Professional Training Courses 2. Ultrasonic Testing Inspection Level 2 Courses 3. Magnetic Particle Testing Level 2 Courses 4. Liquid Penetrant Testing Level 2 Courses 5. AutoCAD Training Courses
Skills
1. NDT Level 2 Inspector (UT, MPT, PT) 2. CAD Softwares Skills (SW, CATIA, AC, BC) 3. Speak, write and read clearly in Malay and English.
Experiences
1. Involved in maintenance, repair and overhaul various types of aircrafts as Alouette, Agusta, BAE Hawk and C-130 during working with Airod Sdn. Bhd. 2. Involved in managing, operating, accounting of BricsCAD branch in Malaysia.
Previous Work
1. Worked as Inspector for Aircrafts in Airod Sdn. Bhd. 2. Worked as Product Designer and multi-tasker for
BricsCAD Company. Position in Company
Chief Executive Officer (CEO)
Share Modal
RM10,000
3. 1. 2 Chief Operating Officer (COO)
Figure 3. 3: COO of EZ Water Management Sdn. Bhd.
Table 3. 2: Personal background of the COO. Name
Amirul Iddham Bin Ahmad Fuad
I.C Number
950505-14-6451
Date of Birth
05 May 1995
Age
23 years old
Gender
Male
Status
Single
Email
[email protected]
Permanent Address
No. 6A Lot 822 Jalan Endau, Kampung Tenglu, 86800 Mersing, Johor
Academic
Bachelor of Mechanical Engineering
Qualification Courses Attended
1. OSHA-Compliant Safety Training & Compliance Services 2. SolidWorks Training Courses 3. Facilities Maintenance Training – TPC Training
Skills
1.
Fluent in English, Malay and Japanese language
2. Excellent in design software such as CATIA, Solidworks, BricsCAD, AutoCAD and ANSYS. 3. Machine maintenance and troubleshooting 4. Product development and testing Experiences
1. Additive manufacturing production 2. Production line designation 3. Product design development
Previous Work
Executive Production Engineer HONDA MALAYSIA
Position in Company
Chief Operating Officer (COO)
Share Modal
RM8,000
3. 1. 3 Chief Financial Officer (CFO)
Figure 3. 4: CFO of EZ Water Management Sdn. Bhd.
Table 3. 3: Personal background of the CFO. Name
Muhammad Nasrullah Bin Mohd Nasir
I.C Number
950228-05-5163
Date of Birth
28 February 1995
Age
28 years old
Gender
Male
Status
Single
Email
[email protected]
Permanent Address
Kampung Sungai Sala, Renggoh 73100 Johol Negeri Sembilan
Academic
Bachelor of Mechanical Engineering
Qualification Courses Attended
1. Financial Planning Course-FPAM 2.
Financial Risk Management Training
3. Business Administration Course 4. CNC Machine Training Skills
1. Fluent in English, Malay and Japanese language 2.
Excellent in business planning.
3. Good management in cash flow of company Experiences
1. Clerk Accountancy at Veritas Sdn. Bhd 2. Assistance manager of Marketing and Financing department
Previous Work
Assistant Financial Manager in SOFTINN SDN.BHD
Position in Company
Chief Financial Officer (CFO)
Share Modal
RM7,000
3. 1. 4 Chief Marketing Officer (CMO)
Figure 3. 5: CMO of EZ Water Management Sdn. Bhd.
Table 3. 4: Personal background of the CMO. Name
Chua Lian Kai
I.C Number
950416-02-5383
Date of Birth
19-04-1995
Age
23
Gender
Male
Status
Single
Email
[email protected]
Permanent Address
52, Pantai Johor, 05250, Alor Setar, Kedah
Academic
Bachelor Degree In Mechanical Engineering with
Qualification
Honours
Courses Attended
1. 7QC Tools Training
2. CATIA Software Training 3. CNC Machine Training Skills
1. Fluent in Malay, Chinese and English language 2. Design major with all design software 3. Machine jig designing and drawing 4. Machine maintenance
Experiences
1. Jig design and fabricate 2. Production line 3. CNC & lathe programming
Previous Work
Assistant Project Engineer in Zincalu Casting Sdn Bhd
Position in Company
Chief Marketing Officer (CMO)
Share Modal
RM8,000
3. 1. 5 Chief Technical Officer (CTO)
Figure 3. 6: CTO of EZ Water Management Sdn. Bhd.
Table 3. 5: Personal background of the CTO. Name
Zarif Hasif Bin Termiti
I.C Number
951002-10-7120
Date of Birth
02 October 1995
Age
23 years old
Gender
Male
Status
Single
Email
[email protected]
Permanent Address
Lot 1412, Jalan Orkid Batu 7 Ijok, 45600 Bestari Jaya, Selangor
Academic Qualification
Bachelor of Mechanical Engineering
Courses Attended
1. ISO
9001
Quality
Management
Training
Courses 2.
KAIZEN Training Course
3. SolidWorks Training Courses Skills
1.
Fluent in English, Malay and Japanese language
2. Excellent in design software such as CATIA, Solidworks and AutoCAD 3. Mold design and fabrication 4. 3D printing product development Experiences
1. Inline and offline quality control 2. KAIZEN and Poka Yoke quality production control
Previous Work
Quality Engineer( In-Line Process) DAIKIN MALAYSIA
Position in Company
Chief Technical Officer (CTO)
Share Modal
RM5,000
3. 1. 6 Chief Human Resources Officer (CHRO)
Figure 3. 7: CHRO of EZ Water Management Sdn. Bhd.
Table 3. 6: Personal background of the CHRO. Name
Mohd Sukri Bin Mohd Ja’afar
I.C Number
950116-11-5221
Date of Birth
16 January 1995
Age
23 years old
Gender
MALE
Status
Married
Email
[email protected]
Permanent Address
Lot 62 Kampung Baru Lembah Bidong Merang Setiu Terengganu
Academic
Bachelor of Mechanical Engineering
Qualification Courses Attended
1. Autocad Software Training
2. CNC Machine Training 3. Welding Training 1. Excellent in design software such as CATIA,
Skills
Solidworks, BricsCAD, and AutoCAD 2. Machine maintenance and troubleshooting 3. Product development and testing Experiences
1. Production line 2. CNC milling, lathe & CNC Punch programming
Previous Work
Executive Human Resource SUBITECH.SDN.BHD
Position in Company
Chief Human Resources Officer (CHRO)
Share Modal
RM5,000
Designations and roles of each senior-executive management team member are shown in Table 3. 7.
Table 3. 7: Designations and roles of senior-executive management team members. POSITION
Chief Executive Officer (CEO)
WORK SCOPES
● Act as company leader and monitoring the company performance to ensure the company goal is achieve ● Setting strategy and direction for the company ● Modelling and setting the company’s culture, values, and behaviour ● Building and leading the senior executive team ● Allocating capital to the company’s priorities ● Conduct meetings and update the new information.
Chief Financial Officer (CFO)
● Train the Finance Unit and other staff on raising awareness and knowledge of financial management matters. ● Manage the capital request and budgeting processes ● Ensure that all financial transactions go smoothly. ● Report financial results to the board of directors ● Monitor cash balances and cash forecasts ● Ensure that record keeping meets the requirements of auditors and government agencies
Chief Marketing Officer (CMO)
● Facilitate growth, sales, and marketing strategies of the company. ● Prepare overall marketing strategy. ● Implement and manage marketing budget. ● Design and improve upon marketing campaigns for each aspect of company ● Update the sales and orders of company.
Chief Human Resources Officer (CHRO)
● Develop HR plans and strategies to support the achievement
of
the
overall
business
operations
objectives. ● Manage welfare of the company employee ● Take responsibilities on worker employment ● Ensure quality of working environment ● Provide overall leadership and guidance to the HR function
by
overseeing
talent
acquisition,
career
development, succession planning, retention, training, leadership development, compensation and benefits globally.
Chief Technical Officer (CTO)
● Control and manage all the technical activities and maintenance ● Manage the quality control and quality assurance of the product and production line ● Manage system installation, operation and perform system check-up. ● Manage
sustainable
development
product and waste management.
on
production,
Chief
Operating
Officer
(COO)
● Manage the production schedule and arrangement ● maintaining
and
monitoring
staffing,
levels,
Knowledge-Skills-Attributes (KSA), expectations and motivation to fulfill organizational requirements ● Driving performance measures for the operation ● Developing
and
cascading
the
organization's
strategy/mission statement to the lower-ranking staff. ● implementing
appropriate
rewards/recognition
and
coaching/corrective practices to align personnel with company goals.
3. 2 Organizational chart
The organization of the company is constructed for the systematic management of the company. It involving the experience and knowledge worker in the organization to guide the team member to performing their work scopes. Organizational chart of the company is shown in Figure 3. 8.
Figure 3. 8: Organizational chart of the company.
3. 3 Human Resources plan
Human Resource Planning (HRP) is the process of forecasting the future human resource requirements of the organization and determining as to how the existing human resource capacity of the organization can be utilized to fulfill these requirements. It, thus, focuses on the basic economic concept of demand and supply in context to the human resource capacity of the organization. It is the HRP process which helps the management of the organization in meeting the future demand of human resource in the organization with the supply of the appropriate people in appropriate numbers at the appropriate time and place. Further, it is only after proper analysis of the HR requirements can the process of recruitment and selection be initiated by the
management. Also, HRP is essential in successfully achieving the strategies and objectives of organization. In fact, with the element of strategies and long term objectives of the organization being widely associated with human resource planning these days, HR Planning has now be come Strategic HR Planning.
3. 3. 1 Human Resource Strategic Plan (5 years planning)
Human Resource Strategic Plan for 5 years planning will be focusing on development of the company and the workers welfare. This to ensure the balance between the company performance and workers effort that contribute to establishment of the company business. The human resource strategic plan which has been constructed for 5 years period starting from 2018 to 2022 is show in Table 3. 8 below.
Table 3. 8: Human Resource Strategic Plan (2018-2022). Title
Involved party
Description
● Mid-level executives KAIZEN training by competent person Kaizen Training
● Senior-executives
to implement the kaizen ethics in the production to improve product quality continuously time to time.
International Organization for
● First-level
ISO training by competent person to
executives
achieve ISO certification for company
Standardization
● Mid-level executives service, manufacturing and product.
(ISO) Training
● Senior-executives
5S Training
● All
staffs
company
of 5S training by competent person to implement workplace
the
5S
culture
towards
in
the
achieving
sustainable and improved safety and morale due to improvements in the work environment.
Benchmarking
● Mid-level executives Cooperation between competitor in the ● Senior-executives
manufacturing field for product or production benchmarking by sharing expertise.
Service Appreciation to employee
● All staffs of company
Appreciation to employee that show best
performance
in
their
work,
employee that want retired and long service employee by giving gift or bonus in their salary. Family Day
Annual Dinner
● All staffs of
Improve relation among employee and
company
also for employee quality time with
● Employee family
family.
● All staffs of
Improve relation among and employee
company
and rewarding employee on their hard work to establish the company.
3.3.2 Human Resource Strategic Plan (3 Years Planning)
Human Resource Strategic Plan for 3 years planning will be focusing on development of the company member and expertise. This to ensure every division have expertise in their field t to ensure the company activities running smoothly with supervision from experience worker. The human resource strategic plan which has been constructed for 5 years period starting from 2018 to 2020 is show in Table 3. 9 below.
Table 3. 9: Human Resource Strategic Plan (2018-2020)
Position
Year 1
Year 2
Year 3
Chief of Technical Officer
1
1
1
Technical Manager
1
1
1
Quality Control Officer
1
2
3
Production Engineering Technician
3
4
4
Chief Of Operating Officer
1
1
1
Operating Manager
1
1
1
Production Executives
1
2
3
Project Executives
1
2
2
Chief of Human Resource Officer
1
1
1
Human Resource Manager
1
1
2
Training Executives
1
2
2
2
2
2
Technical Division
Operation Division
Human
Resource
and
Administration
Division
Recruitment Executives
and
Worker
Welfare
Marketing Division
Chief of Marketing Officer
1
1
1
Marketing Manager
1
1
1
Sales Executives
1
2
2
Market Research Executives
1
1
1
Chief of Financial Officer
1
1
1
Financial Manager
1
1
1
Financial Assistant/ Treasurer
1
2
2
Internal Auditor
1
1
1
Total Number of Worker
23
28
32
Total Knowledge Workers
18
20
23
Total Foreign Knowledge Workers
2
3
4
86.96
92.86
84.38
Financial Division
Percentage of Knowledge Workers%
SECTION 4 PRODUCT OR SERVICE DEVELOPMENT
4. 1 Product and technology overview
We aim to market and support a full range of the product. This product will be a new generation technology to people who have a busy schedule at workplace and house. The company emphasis on the quality of the product and service which can be provided for the customers. For product, company has made an automatic rain water filter which does not require any of the electrical energy to operate the full system. The company will also provide service where the customer wants to fully create or custom on the product will be installed in their houses. The company also provides a service regularly on the product to check and service the automatic rain water filter.
4. 1. 1 Product and core technology
Ez Water Management Sdn. Bhd has designed the rainwater filter which can be a new technology to the people in this generation. A rainwater filter can operate automatically without users command when the weather is consistent for it to operate. The automotical system can save human power energy to run the system. This rainwater filter use gravitational potential energy as the source of energy to operate the system in the rain water filter in order to exchange the electrical energy consumption in existing rainwater filter. Decrease the electrical energy consumption in daily life by using natural energy resources can achieve the sustainable development goals. Figure 4. 1 shows the design of the self-cleaning rainwater filter completely. The design has two parts that can be separated and combined easily. The upper part consists of the rotating mechanism which are the fan with shaft that attached to brushes as shown in Figure 4. 2, that will sweep away the foreign particle from the system. The lower part consists of stationary component which is the filter as shown in Figure 4. 3.
Figure 4. 1: The outer and inner parts drawing of the whole rainwater filter system.
Figure 4. 2: The fan that is connected to shaft with brushes and bearings.
Figure 4. 3: The design of the fixed components on the lower of the system.
As the design made for the system to be self-functioning without any need of electricity, the system will run when the rain falls. The rainwater from the roof irrigation system will enter the rainwater filter via the center of
the upper part of the product. The energy from the
movement of the rainwater that immediately hit the fan blades, will force the shaft to rotate together. Brushes will act as the sweeper which remove the foreign particles accumulated onto the filter so that it can be carried away into the drain. The filtered water will be supplied to the collecting area as tank or other storage system.
4. 1. 2 Service
All of our service are normally the installation on the rainwater filter and the monthly maintenance services. For the installation service, once order we will send our worker to customer house and check the house situation for a perfect location for our product to have optimum function. We suggest to install at higher place where rainwater touches the area first. Other than that, customer can also custom and choose where to locate the product.
After
installation, we will provided a 1 years warranty after purchase. The regular service will also be
provided on the mechanical parts which is the filter fan and the casing. Any damage caused by the customer will be replaced with a new part.
4. 2 Research and development (R&D)
R esearch and development (R&D) is a valuable tool for growing and improving your business. R&D involves researching your market and your customer needs and developing new and improved products and services to fit these needs. Businesses that have an R&D strategy have a greater chance of success than businesses that do not. An R&D strategy can lead to innovation and increased productivity and can boost your business's competitive advantage.
4. 2. 1 Innovation
Our company targeted to enhance the product by one part per annual for the innovation purpose. While the technologies will be improved time to time on the future. The product will be improved on the design structure and the system which can provide more help to the customer. A new product will be tested by our crew to give a one hundred percent satisfaction to the customers. We will ensure all the product will passed quality issue before sending out to all of our customers.
4. 3 Benefit and customers value
Ez Water Management Sdn. Bhd provides a product that is very helpful to the customer. The customers have a benefits form the warranty given by the company where all items that malfunctioned will be replaced with a new one under a warranty. Then, the company also provides a regularly service under a minimum charge which is affordable to anyone. EZ Water Management Sdn. Bhd have competent person that certified by the government to perform maintenance to ensure the system is safe and fully functioning. Our company motto is the satisfaction of the customer where the customers are always right. The company will provide a service pick up and installation to your door. The motto will lead the business progress to the international target. For the service, we can meet all the requirements for the customer to satisfy with our help. Customer service will provided which is it can be the platform that the customers can use to report any problem in using the product.
SECTION 5 MARKETING PROGRAMS
5. 1 Marketing overview
All successful products or brands need well-planned marketing strategies in place to ensure that they satisfy the goals set by the corresponding business unit or geographic level and, in turn, the overall corporate marketing strategy. Marketing plan tells how the company plan to sell the products. Because selling our products is fundamental to our company’s success, it is essential that our business plan include an outline of the marketing plan we will follow to achieve sales success.
5. 2 Marketing programs
Marketing is the management process through which goods and services move from concept to the customer. Marketing includes the coordination of four elements called the 4 P’s of marketing which are product, price, place and promotion.
Figure 5. 1: 4Ps in marketing.
● Product – The first of the Four Ps of marketing is product. A product can be either a tangible good or an intangible service that fulfills a need or want of consumers. All products follow a logical product life cycle and it is vital for marketers to understand and plan for the various stages and their unique challenges. It is key to understand those problems that the product is attempting to solve. The benefits offered by the product and all its features need to be understood and the unique selling proposition of the product need to be studied. In addition, the potential buyers of the product need to be identified and understood.
● Price – Price covers the actual amount the end user is expected to pay for a product. How a product is priced will directly affect how it sells. Once a concrete understanding of the product offering is established we can start making some pricing decisions. Price determinations will impact profit margins, supply, demand and marketing strategy. Similar (in concept) products and brands may need to be positioned differently based on varying price points, while price elasticity considerations may influence our nex t two Ps.
● Promotion – We have got a product and a price now it’s time to promote it. Promotion looks at the many ways marketing agencies disseminate relevant product information to consumers and differentiate a particular product or service. Promotion includes elements like: advertising, public relations, social media marketing, email marketing, search en gine marketing, video marketing and more. Each touch point must be supported by a well positioned brand to truly maximize return on investment.
● Place – Place or placement has to do with how the product will be provided to the customer. Distribution is a key element of placement. The placement strategy will help assess what channel is the most suited to a product. How a product is accessed by the end user also needs to compliment the rest of the product strategy.
SECTION 6 FINANCIAL OVERVIEW
This chapter is will basically summarize the financial plan that have b een planned by our company for the next 12 months. Information about the forecast of company earned o r loss will be discussed in this section. Our financial plan is complete in detail of what and where we spend the money at. This chapter of the business plan is one of the most essential component of the plan as part of winning over the investors or obtaining a bank loan.
6. 1 Profit & Loss (P&L) projections
Table 6. 1: Profit and loss of EZ Water Management Sdn. Bhd. RM
Sales
3,252,000
Loss: Cost of Goods Sold
1,626,000
Gross Profit
1,626,000
Loss: Administrative & Marketing Expenses Payroll
233,000
KWSP
67,074
PERKESO
7,582
Premise-Rental
60,000
Dep-Computer
7,000
Dep-Office Utilities
3,000
Dep- Furniture
4,000
Disposal
20,000
Electricity
5,000
Water supply
3,000
Telephone
2,500
Registration
3,000
Advertisement
40,000
Lorry
20,000
Insurance and tax Income from Operation
5,000 1,145,844
Interest-lorry
10,000
Interest-loan
2,000
Income before Income Tax
1,133,844
Income tax expense (20%)
226,769
Net Income
907,075
Based on the Table 6.1, the annual income or profit for year 2018 is RM 907,075, which is not bad for a starting company. The cost of the good sold is half the amount of the total annual sales which is RM 1,626,000. Administrative & Marketing Expenses will cost the company RM 480,156 per year while just RM 12,000 for the operation cost. Furthermore, income tax is unavoidable and it cost the company 20% of its annual income. 6. 2 Cash flow projection
Table 6. 2: Cash flow in of EZ Water Management Sdn. Bhd. for 3 years.
(+) Flow in:
Capital Loan
Sales
TOTAL CASH FLOW
January
300,000
-
70,000
370,000
February
-
-
80,000
80,000
March
-
-
80,000
80,000
April
-
-
90,000
90,000
May
-
-
95,000
95,000
June
-
-
96,000
96,000
July
-
-
100,000
100,000
August
-
100,000
100,000
September
115,000
115,000
October
130,000
130,000
November
131,000
131,000
December
134,000
134,000
Total (Year 1)
0
370,000
1,221,000
1,591,000
Total (Year 2)
0
407,000
1,343,100
1,750,100
Total (Year 3)
0
444,000
1,465,200
1,909,200
Due to our new involvement in the business world, our company do not have historical documents such as profit and loss statements and balance sheets from years past to base these forecasts on. Table 6. 1 and Table 6. 2 project the cash-flow in statement that has been broken down to 12 months. Based on Table 6. 2, the sale starts to increase from RM 70,000 to RM 80,000 from Jan until March. Then, it started to increase again by RM 10,000 in April then RM
5000 more in May. We forecast this increase in sale as there will also an increasing demands. The monthly sale increase until December which it reach RM 134,000 per month. So the total of the cash flow in the company for the first year in the business is RM 1,591,000. These number is expected to rise annually.
6. 3 Performance balance sheet
Table 6. 3: Performance balance sheet of EZ Water Management Sdn. Bhd. RM
RM
RM
Non-Current Assets
Computer
35,000
Less: Accumulated Depreciation
5,000
Office Supplies
6,000
Loss: Accumulated Depreciation
2,000
Furniture
4,000
Loss: Accumulated Depreciation
2,000
Carrier Mitsubishi Hilux
80,000
Loss: Accumulated Depreciation
16,000
30,000
4,000
2,000
64,000
Current Assets
Bank
345,380
Final stock
212,000
TOTAL ASSETS Current Liability
657,380
Non-current Liability
Long terms loan
300,000
Loss: principal payment
50,000
Hire Purchase Lorry
80,000
Loss: principal payment
20,000
250,000
60,000
Funded by : Stockholders Equity
Total Income
310,000 657,380
Total Liability and Equity
The balance sheet in Table 6.3 is the statement of this company’s financial position. When we subtract company’s liabilities from the assets, what is left is called the equity. The Table 6.3 shows all the assets and the liability that the company have during the whole 12 months of operation. After the subtraction, the value of the stockholders equity is zero for the first annual.
6. 4 Major capital requirement
Table 6. 4: Administration expenses of EZ Water Management Sdn. Bhd. Item
Assets Expenses
Monthly Expenses
Other Expenses
(RM)
(RM)
(RM)
Payroll
25,000
KWSP
2,100
PERKESO
520
Premise Rental Computer
4,000 35,000
Office Appliances
6,000
Furniture
4,000
Dep-Computer
530
Dep-Office Appliances
100
Dep-Furniture
100
Disposal
2,000
Electricity Bill
3000
Water Bill
1500
Telephone Bill
1000
Registration
2000
Petrol (Lorry) Total
2000 45,000
41,850
2000
Based on Table 6. 4, the major expenses is on the assets, which have a total amount of RM 45,000. But for the assets expenses it only spent once during the start of the company. For the Monthly expenses, payroll take up the most amount at RM 25,000 per month. While for the total expenses that need to be spent by the company monthly is RM 41,850.
Table 6. 5: Marketing expenses EZ Water Management Sdn. Bhd. Item
Assets Expenses
Monthly Expenses
Other Expenses
(RM)
(RM)
(RM)
Marketing
3,000
Hire Purchase Lorry
90,000
Dep-Lorry
2,564
Principal-Lorry
2,640
Interest-Lorry
897
Insurance and tax
1000
Inventory
1,000
Total
90,000
10,101
1000
For the marketing expense, the company spend most of the money on the assets purchase which is RM 90,000 for the lorry. While the monthly expense for the marketing is way low for the administration at RM 10,001 per month.
6. 5 Breakdown sales
Table 6. 6: Sales in 1st year. Expected Unit
Unit Selling Price
Sales
(RM)
Total Sales (RM)
January
70
1000
70,000
February
80
1000
80,000
March
80
1000
80,000
April
90
1000
90,000
May
95
1000
95,000
June
96
1000
96,000
July
100
1000
100,000
August
100
1000
100,000
September
115
1000
115,000
October
130
1000
130,000
November
131
1000
131,000
December
134
1000
134,000
1,290
1000
1,221,000
Total (Year 1)
For the first two month we forecast the sale to be just 70 unit per month due to our new establishment as a company. As the unit sale increase from July until August with the increment of 30 units, and the unit selling at RM 1000 per system, the company sales reach RM100,000 per month during the time. When the sales increase from 100 to 130 unit per month, the total sales will reach up to RM 130,000 per month in October. The highest sales that have been forecasted is the last month of the company in the first year which reach to 134 units per month and increase the sales up to RM 134,000 per month. This is a good indicator as we see a constant growth in unit sales. Furthermore, for the first 12 months of the company operation, it has made the total sales up to RM 1,221,000 and that is a big number for a company that just initiated.
6. 6 Breakdown of R&D expenditure
Table 6. 7: R&D budget for 3 years. Year 1
Year 2
Year 3
(RM)
(RM)
(RM)
Information Technologist Salary
-
40,000
42,000
Product Development Salary
-
25,000
27,000
Employer Cost (11%)
-
6,000
6,300
Additional R&D Budget
-
10,000
10,000
Total R&D Budget
0
81,000
85,300
6. 7 Financial info (Financial questions to consider)
1. Our company’s revenues and expenses developed from the budget that will come from our annual income. Furthermore, after more than a year of operating, this company will be looking for the investor to invest based on the good track record of the company financial. 2. Our financial planning is stretched to 12 months of the first year of the company operating. This is due to the fact that the company do not have any history of financial report to be presented. So we forecast our financial plan based on the first budget that we have obtained when the company start. 3. We have the capital to sustain the operation from the loan. Table 6.8 shows the schedule of the load payment.
Total Loan : RM300,000
300,000
Interest Rate : 8%
0.08
Period : 120 month (10 year)
120
Refund
start
January
:
Method
2019
Straight
:
Line
Amount of Principal per Month : RM 2,500 (RM 300,000/ 120)
2,500
Amount of Interest per month : RM 200 (RM 2500 x 8%)
200
Table 6. 8: Schedule of the loan payment. YEAR
Principal
Interest
Total Payment
Principal
(RM)
(RM)
(RM)
Balance (RM)
0
300,000
1
30,000
2,400
32,400
267,600
2
30,000
2,400
32,400
235,200
3
30,000
2,400
32,400
202,800
4
30,000
2,400
32,400
170,400
5
30,000
2,400
32,400
138,000
6
30,000
2,400
32,400
105,600
7
30,000
2,400
32,400
73,200
8
30,000
2,400
32,400
40,800
9
30,000
2,400
32,400
8,400
10
30,000
2,400
32,400
0
The company will realize the profit during the annual income when the stockholders’ equities will increase annually. The investor will get a net growth of their stockholders’ equities annually.
SECTION 7 CONCLUSION
EZ Water Management Sdn. Bhd. is a company that cares about the water resources for domestic usage in homes and offices. This company plans, designs, develops and sells the products which are user-friendly and eco-friendly related to the rainwater filtration systems. It started when there is a concern on saving the usage of water in home and office among the founder and co-founder of this company. For the use of plants watering, car washing and toilet flushing, it is better to use the rainwater due to the none of the need for the users to consume the water into their body. EZ Water Management Sdn. Bhd. will be established in February 2019. The company will have 6 shareholders in the company with starting capital of RM300,000 which is divided into 50% for the founder and 10% for 5 others. Secrawfil is the main product of this company which will help users collect filtered rainwater to be stored and used in their homes and offices without the need of electricity and will save their water bills. All the plans have been stated in this business plan of EZ Water Management Sdn. Bhd. with aims and targets to reach
