1.

0 INTRODUCTION TO COMPANY
1.1 CORPORATE PROFILE

Smart Tech Sdn. Bhd. (SMARTECH) is 100% owned Malaysian company (388108 W). Incorporated in 2002, it was set up to enhance the Malaysian participation in edifice and designing ideas through breakthrough in mass manufacturing Hygiene Tech Sdn. Bhd. as Master Hygiene System and Environmental Services Company covers ranges of wide environmental equipment such as waste management. The company acquired the best technology, full with expertise and is back up with strong financial to fulfill the client's expectations. The company also was awarded ISO 9001:2000 Quality Management System certificate by SIRIM Berhad. In 2006, Hygiene Tech Sdn. Bhd. was awarded as TOP 50 Enterprise by Ministry of Industry Trade and Industry (MITI) and Accentor.

1.2 BUSINESS OPERATION

Hygiene Tech Sdn. Bhd. covers mainly towards developing dustbin compressor that not only useful but is also reliable, flexible and easy accessibility. Our target is headed for finding ways to incorporate existing technologies with newlyemerging technologies. For example, by improving normal dustbin into a dustbin compressor that is more environmental friendly by utilizing the latest technology. We also operate to give our clients dependable and cost efficient solutions to abolish their worries on the lack of space for dustbin storage. Finally, our solution easily expandable for meeting tomorrow's needs.

1.3 COMPANY BACKGROUND

Company Name Registration No. Incorporation Main Office

: : : :

Hygiene Tech Sdn. Bhd. 388108 W 21st July 2001 6th Mile, Jalan Sentul, P. O. Box 40, 68000 Sentul, Selangor Darul Ehsan, Malaysia

Website Email Telephone Number Fax Number Bank References

: : : : :

www.hygienetech.com.my samir@hygienetech.com.my +60 3 4270 8808 +60 3 4270 8809 Bumiputra Commerce, Ampang Branch UOB Berhad, KL Main Branch

1.4 COMPANY PHILOSOPHY Continually set and strive to achieve new goals DO NOT BE AFRAID OF FAILURE Bend all efforts to earn Hygiene Tech the TRUST and Affection of Customer RECOGNISE THE IMPORTANCE OF LOYALTY AND DEDICATION Take all measure to achieve customer satisfaction CUSTOMER SATISFACTION IS OUR PRIORITY Master leading edge technology and develop proprietary technology for our company RECOGNISED THE ROAD TO SUCCESS IN THIS HIGH

COMPETITIVE WORLD

1.5 OUR COMMITMENT To provide full support to the clients and committing the good image To invest in high technology knowledge. To furnish and upgrade manpower skill To maintain high quality of works to client satisfaction

1.6 THE ORAGANIZATIONAL CHART

CEO Khairul Adzha Bin Abu Tahar

COO Mohd Nazir

SECRETARY

Aisy Anuarin

Research and Development Mohd Zaieri

Production Planning Control Abdul Razak Abd halim

Production

Busines and Poduct Development Abdul Jalil

Sales and Marketing

Purchasing

Quality Department Ahmad Ibrahim

Administration

Financial

Mohd Elhadi

Hasan

Khairil

Samir

Hashim

Figure 1.1: The organizational chart

1.7 BIODATA OF GROUP MEMBERS

Chief Executive Officer (CEO)

The current CEO of Hygientech is Khairul Adzha Bin Abu Tahar. Born in 7 october 1981, after finishing his secondary school at Sekolah Menengah Kebangsaan Abdul Rahman Talib, Kuantan, he furthered his study at International Islamic University Malaysia, in which he graduated with Bachelor of Mechatronics Engineering in 2003. He then furthered his study in Master of Business Administration in University of Liverpool, United Kingdom. Upon graduating from the university, he joined Hygientech as the Head of the Accounting and Finance Department before being promoted to Chief Executive Officer early this year.

Secretary

Mr. Aisy Anuarin was born in 17 April in 1984. He is 23 years old. He was married and has 3 children. He got a Diploma in Secretary from University institute Technology of Malaysia The only company he was working is Zaid Ibrahim and Co. He was working as a secretary. His main duties is including word processing, filing, composing cover letters, preparation of timesheets and some client contact and other secretarial related responsibilities. His strength is perfectionist and always be on time.

Chief Operating Officer

Mohd Nazir bin Mat Nawi graduated from International Islamic University Malaysia in Communication Engineering and now is holding the position of Chief Operating Officer. He was working on Communication and Antenna System during the internship at Agensi Angkasa Negara. He has strong presentation and technical abilities. Good management skill and rich in new ideas to improve the company performance.

Head of Marketing Department

Mr.Hasan Bin Haji Abdul Rahman. He is Head of Marketing of hygientech . He got his first degree in GA Bachelor of Arts, International Business and Marketing in May 2000 and continued his study in Masters in Business and Administration in University of Manchester, United Kingdom. He was working as Resident Advisor in his ex university in Georgia Tech, Atlanta for 1 year. Then he was working with Exxon Mobil as head of advertisement group for 4 years. His strength is creative and an innovative person who is able to cooperate with team members and a self-motivator person with high determination to accomplish any objectives that have been set.

Head of Research and Development Department The Head of Research and Development is Mr Mohd Zaieri Mohamed. He was graduated from Manchester University in 2004 and has a degree in Bachelor of Manufacturing Engineering with honors of CGPA 3.89/4.00. He also have working experience in 2 big companies before he give his contributions to hygientech. The first company he joins is at Malaysia Airlines System as Flight Engineer on early 2004. After that, he got a good offer from Perodua to be as Head of Research and Development a year after. When he knows that hygientech give higher benefit and incentive to any experience people, he applied for that and then finally he got the offer to be a Head of Research and Development Department. Furthermore, he has a good skills and ability such as the ability to work set or flexible hours. Besides, he also has excellent communication skills and able to work independently or with supervision. Also, he is a good team worker with cooperative personal style.

Head of Administration Department

Mr. SEMIR NASEER HAGOS AL JABERTY. He is Head of Administration Department of Hygientech Sdn. Bhd. He got his first degree in GA Bachelor of Manufacturing Engineering in May 2007 at University of Vermont, Burlington, VT and continued his study in Masters in Business and Administration in University of Manchester, United Kingdom. He oversaw recruiting and training programs, Directed distribution of benefits, supervised a team of twelve human resource managers in all phases of the hiring and training process. His strength is creative and an innovative person who is able to cooperate with team members and a self-motivator person with high determination to accomplish any objectives that have been set.

Head of Business and Product Development Department

Mr. Abdul Jalil gets his bachelor from International Islamic University Malaysia in Manufacturing Engineering. Currently, he holds the position of Head of Business and Product Development Department. His working experience among top company likes Intel and General Motors. He has a strong sense on what customer expects on new products.

Head of Purchasing Department

Ir. Mohd Khairil Bin Mokhtar is the Executive Director of Purchasing Division since 2004. He comes from Kuantan, Pahang. He received his Degree of Material Engineering and Master in Material for Manufacturing Engineering from Massachusetts Engineering University and PhD in Advance Manufacturing Material from the Texas Technology University. Before he works in Hygiene Tech Sdn. Bhd, he has worked under Massachusetts Engineering University as a Material Engineer. In order to help his country to achieve higher technologies level, he willing to quit his job at Massachusetts Engineering University, comeback to Malaysia, and joins Hygiene Tech Sdn. Bhd. as Purchasing Div. (Executive Director)

He handles purchasing of all material and manufacturing technology needs for Hygiene Tech Sdn. Bhd. In addition, he wishes that all of his past experience will benefit for his future career. Head of Quality Department

Ahmad Ibrahim, I was born in July 1982 I Syria. I graduated from IIUM in 2008, having a bachelor of manufacturing engineering. Throughout my study I was exposed to all quality control processes and systems as it is a core part in my specialized foiled of study. Quality control was also my task during my training period; I was a trainee at certain company in the QC\QA department as QCI. My tasks were ranging for monitoring operators and machines to solving variable problems whether they happen suddenly or hidden in some products. My tasks also included studying and examining all work related to insure elimination of hidden problems and to ensure quality conforming of all products. Beside that I had to follow the basic quality control steps including making necessary statically charts and so on.

Head of Finance Department

Mr.HASHEM AHMED AL-HEBSHI. He is Head of Financial Department of Hygientech Sdn. Bhd. He got his first degree in GA Bachelor of Manufacturing Engineering in May 2006 at International Islamic University Malaysia and continued his study in Masters of Finance at the same university.

Head of Production Department

Mohd Elhadi has obtained his degree in manufacturing engineering from the IIUM and graduated with first honor certificate. Then he worked with PETRONAS for three years. After this, he continued his academic study by pursuing masters in science in the field of manufacturing engineering. After obtaining the M.Sc. degree he joined the Hygiene SDN BHD with which he is working since two years until now.

1.8 THE POTENTIAL CUSTOMER

Hygientech offers a unique opportunity to enjoy an enriched experience to indulge in a quality lifestyle at work. The product is suitable for:

people who desires a peace of mind at office lecturers room lab room class room people leading a hectic working life who desires more time to relax and enjoy life people who enjoy technology

2.0 THE INTRODUCTION TO THE PRODUCT

Manufacturers around the world nowadays started to think for a dustbin which is very useful in function and ergonomics in size for the office and home usage. This combination would be the best triumph that many manufacturers never achieved. Regarding to this matter, then it comes to the idea of how to produce the dustbin which can be categorized as smart and functional not more than just an ordinary dustbin. With the base of knowledge in how the ordinary dustbin used to be, then we have come to make and create the Hygienic Plastic Container as the worlds new stuff. The Hygienic Plastic Container is produced by many child part which is then assembled together to be as one comprehensive dustbin. This smart dustbin is first come from the inspiration of how to keep the rubbish in the office and home dustbin for a longer time with the optimum usage. Then the idea has been drawn with the sketches on the paper as the first step to make and create this Hygienic Plastic Container. The figure 1 shows the idea has been interpreted into drawing and sketch.

Figure 2.1: The sketch on drawing

2.1 THE MECHANISM OF HYGIENIC PLASIC CONTAINER The first thing had come in engineers mind was how to create and make a new dustbin which can be used for a certain period of time. The only solution for this problem is to compress the rubbish in the dustbin by not wasting the vacant space of the dustbin. In addition, the shape of the new dustbin also must be taken into account. For this Hygienic Plastic Container, the shape of dustbin is been decided as a square with rounded end. This is an ergonomically way how to keep the rubbish in compressed. As its name the Hygienic Plastic Container Compressor, it uses the aluminum compressor plate as a tool to compress the current amount of rubbish onto the optimum vacant space. The compressor plate is been made by 2 separate plates which can be move up and down by plate ball during compressing the rubbish. Figure 2.2 shows the prototype of the Hygienic Plastic Container.

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Figure 2.2: The prototype of Hygienic Plastic Container.

The compressor mechanism of this system is been inspired by the concept of spring at ball pen which has a key hole and interlock pin. The mechanism of this system is very simple and user friendly. Every time the dustbin is been occupied, the compressor plate can be open by twisting up the compressor holder (ellipse holder). The plate again can be closed by twisting down the compressor holder (ellipse holder). To compress the rubbish, the user can only push the compressor holder (ellipse holder) towards down until it reached the limit level. The inner spring will keep the level of compressed rubbish by locking the limit level. Figure 2.3 shows the mechanism of how the compressor works.

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Figure 2.3: How the compressor works. Approximately 20 cm above the bottom level of dustbin, the spring will reach the final level and it cannot be compressed anymore. At the bottom level, there is another spring mechanism attached with the bottom plate. The bottom spring is used to push the compressed rubbish when it is been unlocked. In inner spring mechanism, there is a key to push the interlock pin which is connected to the bottom spring. Figure 2.4 shows the mechanism of the bottom spring and the interlock pin work.

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Figure 2.4: The mechanism of the bottom spring and the interlock pin.

When this interlock pin is been unlocked, it will release the compressed spring to the initial position (No forces applied). After the bottom spring pushes the lower plate, the key inside inner spring also will be released. To throw away the rubbish, twist up again the compressor holder (ellipse holder) as same with the first step. Figure 2.5 shows how the key hole works with the interlock pin.

Figure 2.5: The mechanism of the key hole and interlock pin.

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After drawn all these ideas into CAD drawing, then the engineer can see the details of the product in drawing to study and investigate again the detail dimension and any improvements will be made from the view of this drawing. The figure 2.6 shows the final drawing of the product by using the CAD software.

Figure 2.6: The final drawing of the product made by CAD software.

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2.2 PRODUCT DESIGN SPECIFICATION

1. Product Title: Hygienic plastic container compressor Purpose: To maximize the usage of the dustbin. Improving the existing dustbin.

2. New or Special features; Compressible part of the dustbin.

3. Competition: Competition from the existing dustbin. New innovation of dustbin from other companies.

4. Intended Market: Intended for office use where the type of thrash is dry and normally papers and plastic.

5. Need for Product: From the survey that has been conducted, it shows that the users are interested in the new features. Only a number of people surveyed expressed their willingness to pay a bit more for an improved product. So our business strategy is to produce an improve dustbin that is low in cost and superior to the existing product in the market.

6. Relationship to existing Product Line: This is an innovation from the existing dustbin in the market. The mechanism is different from the other new innovation from the other companies.

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7. Market Demand: Current market is about 100,000 units annually. We anticipate a 6 percent market share by year 2, growing up to 20 percent share by year 4.

8. Functional Performance: Easy mechanism to open the dustbin for thrashes throwing. A thrash collector is located under the dustbin so that it is easier to remove the accumulated thrash. Able to drop from a reasonable height without spilling the thrashes out.

9. Physical Requirements: (40 x 40x 60 mm) in size. Rectangular shape with rounded corners. No slippery surface on the outside of the dustbin. Varieties of colors could be choosing to suit the office environment. Is about the same weight of the existing dustbin without any thrash in it.

10. Service Environment: The material used must be stable from -20 to 120F, 20 to 100 percent of the relative humidity.

11. Life-Circle Issues: Opening /closure mechanism must not fail for 1000 cycles. Dustbin case made from plastic and is recyclable.

12. Human Factors: No sharp corners or edges to cause cut of cloth or injured any part of the human body. Rounded edges give a good feel of the product. Opening and closing of the dustbin must be simple and ergonomic.

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13. Corporate Constrains: Must conform to the corporate code of ethics. Manufacturing of parts will be contracted to supplier.

14. Legal Requirements: No toxic material should be associated with manufacturing the product.

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3.0 THE PRODUCTION LINE

3.1 THE MANUFACTURING PROCESSES In the production of the dustbin, we employ four different machines, they are: Injection molding machine. EDM machine. Lathe machine. Grinding machine.

The processes carried out using these machines are the best among the other useable processes. To make this clear, injection molding for instance, is better in terms of speed of production, cost and easiness than other choices such as forging and machining. The same thing applied for the other machines. Therefore, we decided to use the above machines, each at its place (as will be detailed below) to carry out the corresponding process.

The dustbin is composed of the following parts: 1. Main body. 2. Dustbin holder. 3. Compressor plate. 4. Push up spring. 5. Ball bearing. 6. Compressor holder. 7. Compressor holder pin. 8. Spring lock. 9. Inner spring.

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Figure 3.1: The Injection Molding processes.

3.2 THE INJECTION MOLDING The following parts are produced using injection molding process: 1. Main body. 2. Dustbin holder. 3. Compressor holder. 4. Ball bearing. 5. Compressor holder pin. The material we have selected to make the above parts (except part no. 4) is polypropylene; this material is one of the most commonly used thermoplastic materials. We have chosen it because it is a tough material; suitable for this application. Aluminum is used to produce the part number 4 the ball bearing. Brass can be used instead, but aluminum is preferable because it is harder.

The molds to produce the above parts are made of aluminum, other materials such as hardened steel, pre-hardened steel, and beryllium-copper alloy can be used. We have

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selected aluminum, because it is cost effective compared with the other materials. These molds are produced using ram and wire EDM.

3.3 TURNING AND GRINDING The following parts are produced using turning and grinding process: 1. Inner spring. 2. Push up spring. There are many different materials usable for producing springs; the common ones are high-carbon steel alloy, oil-tempered low-carbon, chrome silicon, chrome vanadium, and stainless steel. Other materials that are sometimes used include beryllium copper alloy, phosphor bronze, and titanium. In our company, we use high-carbon steel alloy to produce the above mentioned springs. This material is the most common material used for the production of springs.

3.4 ELETRICAL DISCHARGE MACHINING The following two parts are produced using wire EDM process: 1. Compressor plate. 2. Spring lock. Wire EDM process is better in the production of the above parts of the dustbin. It is better in terms of the surface finish produced as well as eliminating the need for finishing processes. It is also fast and economical (as mentioned earlier).

Since here we are using an EDM machine, then the material must be conductive, therefore, plastics cannot be used here. We have selected stainless steel for it is conductive material and harder than aluminum and brass. It is also has a good surface roughness and corrosion resistance

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4.0 PURCHASING PROCESS

The purchasing process starts when there are needs for certain materials and equipments in the company. To produce certain product, production section will request raw material, equipment and services they need. Production section will issue Bill of Quantity (BOQ) to the purchaser. BOQ is an ISO document that is a list use to determine how much raw material need to purchase. Upon receiving the BOQ, purchaser will check the stock with availability stock list before buying process. If there is stock available, purchaser will inform production section and they will deal with storekeeper. If no stock then purchasing section will get quotation from at least 3 suppliers in approved vendor list. Then purchasing section will select the best supplier base on price, country origin and ex-stock for purchase the material. For part of product that the production section is not capable to produce, the task will be given to sub-contact company to handle it. Thus the purchase play role to find sub-contact company with competitive cost. This situation also been applied when too much demand of product from the market. In emergency case purchaser can order raw material with a new supplier that havent approved yet in approved vendor list. Purchase Order (PO) is an ISO document which produces by purchaser to place an order to suppliers/vendors. Purchase Order is raised and updated in Purchase Order Book. Purchase Order has 4 copies which is for Vendor/supplier, Financial Account Department and Store department. Upon delivery storekeeper shall check the material for physical quality whether meet the required specification or not. Delivery Order document will be hand over to purchaser as a purchase record. Same process flow goes to factory equipment purchase process. Besides that purchaser also

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maintain good relationship with supplier/ vendor and keep in touch for maintenance purposes and for next business opportunities in the future.

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5.0 QUALITY CONTROL AND ASSURANCE

In our current company, our products are directly related to certain aspects of quality control systems, like iso 9001, iso 14000, and total quality management.

In total quality management concept we followed all the basic principles which are: Principle #1: Synergistic Relationships

According to this principle, an organization must focus, first and foremost, on its suppliers and customers. In a TQM organization, everyone is both a customer and supplier. Principle #2: Continuous Improvement and Self Evaluation

The second pillar of TQM applied to education is the total dedication to continuous improvement, personally and collectively. Principle #3: A System of Ongoing Process

The third pillar of TQM as applied in academics is the recognition of the organization as a system and the work done within the organization must be seen as an ongoing process. Principle #4: Leadership

The fourth TQM principle applied to education is that the success of TQM is the responsibility of top management.

We have achieved our goals and still going on, as we have the certificate of registration:

Regarding iso 9001 we also implementing the basic steps like: Develop and document your ISO 9001 Quality Manual and Procedures :

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The biggest portion of the project is looking at our current processes, and redesigning them to address all of the requirements in the standard. Then we need to control those processes. Documenting the processes as Quality System procedures is part of this control. Using and improving our QMS Once our system is developed and documented, employees will follow the procedures collect records and make improvements to the system.

Achieving Registration To get our Registration, we needed to select a Registrar so they will come and perform our registration audit, and then regular surveillance audits. During these audits, the Auditor will be looking at our QMS to make sure that it meets the requirements of the standard. Here in Malaysia the organization in charge is SIRIM. And we attach our quality system registration certificate.

Regarding iso 14000 which is actually a SERIES of international standards on environmental management, and it provides a framework for the development of both the system and the supporting audit program. Every organization determined to embrace ISO 14000 should have a supporting policy manual, procedures, data collection forms, etc. We follow the specific standards procedures and steps to achieved the acceptable level and improve it more in future.

Quality control department monitor all activities and processes regarding the production of our product, like monitoring the incoming, outgoing, manufacturing process, painting, transportation, and so on.

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6.0 BUSINESS AND PRODUCT DEVELOPMENT RESEARCH

As a newcomer to the household plastic wares industry, Hygientech Sdn. Bhd. has to ensure high quality and costumers' satisfaction of its products to catch up with the current competition.Therefore, Hygientech Sdn. Bhd.'s marketing division has decided to take two approaches to achieve the desired quality and to ensure costumers' satisfaction. The first approach was to conduct a product survey and the second one was to benchmark competitors' processes and products.

6.1 THE PRODUCT SURVEY

The survey is intended to get customers feedback concerning our innovative hygienic plastic container that we are willing to release to the market soon. As we believe that achieving customers' satisfaction is so crucial to our business, therefore, we are looking forward to get our consumers' thoughts about our new hygienic plastic container which will help us in improving it for consumers' satisfaction. We are aiming at coming out with a new hygienic plastic container's design that will especially be made for trash and waste materials disposing. Our hygienic plastic container will facilitate waste materials management in offices as well as in homes.

The survey was divided into two parts, the first part was a five scale questions and the second part was a subjective questions. Among the questions that been asked in the first part of the survey: 1. Costumers' satisfaction has been met with the existing trash bin found in the offices. 2. Improvements are needed in the existing trash bin design 3. The existing trash bin is difficult to handle 4. The existing trash bin design does facilitate the removing process of the rubbish thrown into it 5. The existing trash bin does not help in compiling the rubbish found in it for any further recycling purposes.

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6. The new trash bin design should be movable 7. The new trash bin design should be big in size 8. The new trash bin design should be light While in the second part the following questions were asked: 1. How much are you willing to pay for a trash bin to be used in the office? 2. How often do you throw rubbish in the trash bin in your office? 3. What type of rubbish do you usually throw in your trash bin at the office? 4. Who often do you remove your rubbish from your trash bin? 5. Could you provide us with any other suggestions that you would like to see them in our new trash bin design? Upon getting back the answered questionnaire, the questionnaire data analysis was carried on to identify costumers' needs and come out with the design recommendations to be submitted to the design team. The following were the results of the data analysis:

For: 5=Strongly Agree, 4=Agree, 3=Not Sure, 2=Disagree, 1=Strongly Disagree

Bars show counts

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15

Count

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0 1.00 2.00 3.00 4.00 5.00

Compiling the rubbish for recycling purposes for the ex isting tra sh bin

Figure 4.1: Compiling the rubbish for recycling purposes.

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25

Bars show counts

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Count

15

10

1.00

2.00

3.00

4.00

5.00

Costume rs Sa tisfactions for existing trash bin

Figure 4.2: Customers satisfactions.

Bars show counts

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Improvem ent ne eded for the e xisting trash bin

Figure 4.3: Improvement needed.

Bars show counts

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Count

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Le ve l of ha ndling difficulty for the e xisting trash bin

Figure 4.4: Level of handling difficulties.

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Bars show count s

20

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Count
10 5 0 3.00 3.50 4.00 4.50 5.00

Movability of the trash bin for the ne w tra sh bin design

Figure 4.5: Movability of the trash bin.

Bars show counts

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Count

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Removing the rubbish foor the e xisting trash bin

Figure 4.6: Removing the rubbish.

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For: 5=Very Big, 4=Big, 3=Not Sure, 2=Small, 1=Very Small

Bars show counts

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Count

0 1.00 2.00 3.00 4.00 5.00

The size of the new trash bin de sign

Figure 4.7: The size of the new trash bin design.

Bars show counts

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Count

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0 3.00 3.50 4.00 4.50 5.00

W e i ght of th e ne w tra sh bi n

Figure 4.8: Weight of the new trash bin.

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6.2 PROCESSES AND PRODUCTS BENCMARKING Benchmarking in its comprehensive meaning is the process of comparing ones own products, services, or processes against those of industry leaders for the purpose of improvement. Benchmarking is widely used by manufacturing firms who seek performance improvement. Many large manufacturing firms have adopted benchmarking as an important and critical management tool to achieve their strategic objectives. It help in understanding how outstanding companies do things so that their excellence in operations can be replicated .Great results and gains can be obtained from benchmarking if implemented successfully. And to implement it successfully, the following several steps were identified and implemented:

1. Select the process of the company that is to be benchmarked:

The company core business is manufacturing highly innovative hygienic plastic container. The processes intended for successfully producing the above mentioned product are: Market Development Conceptual Development Physical design development Surveying and purchasing Raw material Actual manufacturing Packaging Distributing

So the processes that the company is interested to benchmarks are: Conceptual Development Physical design development

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2. Identify the key performance: The key performances that we are looking for in our product's concept and design are: Flexibility Uniquely Innovative Cost effective

3. Identify the best in Class companies:

The best in Class companies are: EZUMI ENTERPRISES SDN BHD

Ezumi Enterprises Sdn. Bhd. Was incorporated since 1995 as a subsidiary of V. S. Industry Bhd. Which is public listed main board company on the Kuala Lumpur Stock Exchange (KLSE)? We have a complete range of all plastic house ware products to suit each and everyone, such as containers, pails, kitchenware, cabinets, racks, drawers, tableware, tray basket, bathroom accessories... Etc. Please take your valuable time to access to our website for more details. KINSON MARKETING SDN BHD

4. Compare the best in class: From previous study we have found that EZUMI ENTERPRISES SDN BHD is the best in class and we are going to benchmark its product.

5. Specify programs and actions to meet and exceed the competition:

The programs and actions are: Mass production Identify a unique niche Costumer satisfaction survey Unique compressing Idea Branding Strategies 31

6.3 MARKETING PLAN

As a newcomer to the industry, marketing is crucial to Hygientech Sdn. Bhd. The basic market needs high quality, creative design and efficient products. Hygientech Sdn. Bhd. will meet this demand with an ever expanding innovative selection of hygienic plastic container. The market for Hygientech Sdn. Bhd. covers a large area of diverse and closely populated groups. Our showroom is located in a downtown urban setting, which give us the advantage of attracting the crowd of the city. It is also an area which contains our target group, particularly officers and parents. Nevertheless, in the long run, Hygientech Sdn. Bhd. wishes to reach out to everyone in the Malaysian society. We consider three factors in our target market which can be described according with geographic, demographic and behavioral factors. Our immediate geographic target focuses on visitors of our showroom. The total targeted visitors are estimated to be 40,000. Our area is considered as a high class Biz area, where our innovative hygienic plastic containers can suit customers' needs. The demographic factors include people of all ages and nationalities, male and female. Parents and young professionals are welcomed to patronize the showroom. The behavioral factors include those who look for high quality and innovative way to handle and get rid of waste material and trashes.

6.4 MARKETING RESEARCH

As the products that we provide are specialized in nature, marketing needs to be done such that the high quality in the products provided is emphasized. The marketing of the product should portray the uniquely of the hygienic plastic container that the factory provides. These items are suitable for all range of customers. People are demanding an efficient trash disposing devices. Our showroom offers hygienic plastic containers to customers at an affordable price. Hygientech Sdn. Bhd.'s pricing scheme is based on per part basis. Moreover, the quality in our products is a value for money. While we are not striving to be the lowest priced plastic containers provider around, we are aiming to be the value leader to

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maximize total revenue. Prices offered will be related to the pricing of competitors found within the vicinity. Focusing on the unique aspect of our showrooms theme for hygienic plastic containers (Quality and customers satisfaction), a mixture of marketing tool will used to promote our presence, our image, and our message. We will employ three different marketing tactics to increase the publics awareness of Hygientech Sdn. Bhd.. Our most important tactic will be word of mouth/in-store marketing. This will be by far the cheapest and most effective of our marketing programs with other aids like wall posters, In-store tour given to every new customer, Outdoor marquee message changed weekly. In addition, a costly approach will be through the local media. It will be used to supplement where necessary. Methods include Direct mail piece containing interior pictures of our products, showroom and our prices. The Print media such as local newspapers, magazines and student publications, placing several large ads throughout the month can be used to explain our concept locally. Nevertheless, we believe, that the best form of advertisement is still the "word-of-mouth." By providing variety of hygienic plastic containers, with unbeatable quality at an unbelievable price in a clean and friendly showroom, we will be the talk of the town. Therefore, the execution of our concept is the most critical element of our plan. The marketing effort will be split into 3 phases; namely the Opening Phase -- An advanced notice (press packet) sent out to all media and printed announcement advertisement in key places, the Ongoing Phase -- A flexible campaign (using the above media), assessed regularly for effectiveness and the Point of Sale Phase -- A well-trained staff can increase the average check as well as enhance the customer's overall experience. Word-of-mouth referral is very important in building a customer base.

We will have to continuously work hard to keep Hygientech Sdn. Bhd. to maintain take the lead in the industry. Our products extend its target market to different kinds of people regardless of their social status, religion, races and age. If our strategy works, we will have differentiated ourselves sufficiently to not have to compete against other household wares manufactures.

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6.5 MARKETING BUDGET (FORECASTING FOR YEARLY BASIS)

Table 4.1: The marketing budget

Sales and Marketing Expenses: 2006 Sales and Marketing Payroll Advertising/Promotion Production Expense Miscellaneous $0 $32,892 $5,427 $0 -----------Total Sales and Marketing Expenses $38,319 $0 $92,892 $15,327 $0 -----------$108,219 2007 $0 $180,000 $29,700 $0 -----------$209,700 2008

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7.0 ADMINISTRATION

7.1 THE MANPOWER STATICTIC

Our company has 300 workers. We have 9 head of department. We have 30 engineers excluding financial, marketing, purchasing and administration that are specialized in their field. Each department has its own head and workforce. The departments are as a Table 7.1 below:

Table 7.1: The number of man power for each department.

Research and Development Marketing

Head: Mohd Zaieri Mohamed Number of Employees: 18 Head: Hasan Haji Number of Employees: 18 Head: Samir nassir Number of Employees: 18 Head: Hashim Number of Employees: 18 Head: Elhadi Number of Employees: 18

Administration

Financial

Designing and Manufacturing

Purchasing

Head: Khairil Number of Employees: 18 Head: Jalil Number of Employees: 156 Head: Ahmed Ibraheem Number of Employees: 18 Head: Abd Razak Abd Halim Number of Employees: 18

Production line

Quality department

Production Planning and Control

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7.2 THE FACTORY LAYOUT

Cafeteria Marketing
Quality Control

Meeting Room

Purchasing

Toilet

COO

TV Room

CEO Designing and Manufacturing entrance

exit

Toilet
Production Line

Toilet

Administration

Financial

Research and Development

Figure 7.1: The factory layout

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Toilet

8.0 FINANCE
8.1 THE FINANCIAL REPORT OF THE PROJECT There are many tasks to be done by the financial department of the company. Financial department should study and measure the product in terms of profit and ability of the company to pay back the bank and to cover the product expenses at the same time so that the company shall decide wither they should produce this product or not. In order to do so the company first should finance the project and set the optimum budget that is needed to complete the project. Then, they determine the sale price from after they got the cost estimation of the product. Finally, they measure the profit to be gained and by calculating the profit, they can see if they can cover the total cost over a specific period of time.

The three tasks that must be done by the financial department are:

1. Financing the project. 2. Determining the price of the unit. 3. Calculating the profit.

1. Financing the project:

The first thing that we did in financial department is to decide how much we need to complete this project and how to afford it. There are two ways to get the required budget of this product. We can get a loan from a company or by equity (stocks). We decided to get a loan from a bank of 2,000,000 RM with interest rate of 5% and we agreed to pay them back in a period of ten years. The reason why we choose the loan over the stock is that in the loan we are only required to pay them the loan back in ten years while in stocks we will share the profit with the share holders for the whole life beside our capability to pay the loan in time.

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8.2 COST AND BUDGET

NO (1) (2)

ITEM Sales (price per set) 2 robots per set Operational cost Manufacturing Production Inventory Maintenance

RM

RM 471,025.00

397,478.90 10,670.00 5,564.00 9,900.00 15,870.00

(3)

Research & Development cost (product enhancement) Marketing & Advertising cost Human Training & Development (Human Resource) Taxes (government tax & service charge) Profit (company earning per product) TOTAL

1550.10 750.00

5,325.00 23,917.00

471,025.00

471,025.00

2. Determining the price per unit:

In this step we came up with optimum price per unit to be sold in the market. To do so we had to calculate the total cost of the product and the profit that we are seeking then we add them together to get the unit price.

There are three categories of cost that to be considered:

1. Material cost: in this category we calculate cost of the row material required to complete the product per unit.

38

Mold injection cost

12000RM

Plastic injection mold cost:

LD material cost/unit LD material time cost/unit LD set-up cost/unit

2.40RM 1.50RM 1.20RM _________ 5.10RM/unit

Aluminum plastic: LD

2440mm x 1200mm x 3mm (t) 352RM 2.50RM/unit

Inner spring Round pin Compressor ball (ball bearing) Push up spring

1KG = 20RM 1KG = 15RM 1KG = 50RM 1KG = 35RM

2. Labor cost: Since our company has 300 workers. We have 9 head of department. We have 30 engineers excluding financial, marketing, purchasing and administration that are specialized in their field. Each department has its own head and workforce. So the measure cost to be calculated in this category is the salary of the employees of each department.

3. Factory over head: any cost other than material cost or labor cost is falling under this category. It is the undirected cost that is related to the product or the process. Marketing, R&D..etc.

39

After we got the total cost for the product we now calculate the price per unit which can be calculated by adding the total cost with the profit desired by the company.

3. Calculating the profit:

Finally we have come to the last step which is how to calculate the profit. We calculate the profit because we need to know if we can pay back the loan in time or not. Also to cover the expenses of the products and the most important thing is to decide is this product going to succeed or not so that we continue or stop producing.

To calculate the profit we need have the annual sales for the year and then we calculate the total expenses of the product and then we subtract it from sales so we get the profit before the taxes then we calculate profit after the tax by multiplying the tax price we get the profit after the tax.

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8.3 THE PROJECT BUDGET Fixed cost Labors (12 workers/hour) Installation setup Total RM 8400 RM 4000 RM 12400

Variable Cost

Color Dome Camera (8) Digital Video Recorder (DVR) (2) Coaxial Cable (per meter) Uninterruptible Power Supply (UPS) Total

RM 3700 RM 2400 RM 5000 RM 4000

RM 15,100

Total Cost

Fixed cost + Variable cost (RM 12400 + RM 15100)

RM 27,500

Tax (5%)

0.05 x RM 27,500

RM 1375

Production Cost

Total Cost + Tax (5%)

RM 28875

Customers price

Production cost + profit (RM 28,875 + RM10000)

RM 38875

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9.0 APPENDIXES
9.1 APPENDIX I

42

43

44

9.2 APPENDIX II

6th Mile, Jalan Sentul, P. O. Box 40, 68000 Sentul, Selangor Darul Ehsan, Malaysia Website Telephone Number Fax Number : www.hygienetech.com.my : +60 3 4270 8808 : +60 3 4270 8809

HYGIENETECH SDN. BHD

Date Day Venue Time Present: 1. Khairul Adzha bin Abu Tahar 2. Mohd Nazir bin Mat Nawi 3. 'Aisy Anuarin bin Abdullah 4. Mohd Zaieri bin Mohamed 5. Abdul Razak bin Abd Halim 6. Hasan bin Hj. Abd Rahman 7. Ahmad Ibrahim Ahmad 8. Mohamed Elhadi 9. Abdul Jalil bin Kader Mastan 10.Mohd Khairil bin Mokhtar 11.Samir Nassir Hagos
ITEM 1.0 1.1 2.0 2.1

: 16th July 2007 : Monday : Engineering Building E2-2-4 : 12pm

0313753 0337553 0335441 0232565 0230397 0227369 0217407 0222603 0338025 0123727 0128293
ACTION

MATTER DISCUSSED GENERAL The meeting began at 12.15pm SPECIFIC ISSUES Structure Organization 2.1.1 Eleven posts have been decided to struct organization. 2.1.2 Bro. Ahmad Ibrahim suggest filling the vacant by voting. 2.1.3 Dr. Mohd Radzi gives some advices regarding structure of organization. 2.1.4 Vacant posts are filled by voting. 2.1.5 Pre Organization structure done. 2.1.6 The Organization chart can be referred at Appendix 1. Other matters 2.2.1 New CEO asks every member to think about activities in the future. 2.2.2 The new structure might need to be revised to suit all members skill. 2.2.3 Date of next meeting

Adha

2.2

2.3

45

The meeting is fixed to follow class time. Meeting will start immediately after Dr. Mohd Radzi finish his lecturer at every class.

The meeting adjoined at 1 pm. Checked by;

Prepared by; . Secretary

.................................... Chief Executive Officer

Main Committee Chief Executive Manager Chief Operating Officer Secretary Finance Division Administration Division Research and Development Business and product Dev. Sales and Marketing Purchasing Division Total Quality Management Production Planning Control Production Line : Ir. Khairul Adzha : Ir. Mohd Nazir : 'Aisy Anuarin : Hasheem : Samir : Zairee : Jalil : Hasan : Khairil : Ahmad : Abdul Razak : Mohamed Elhadi

46

6th Mile, Jalan Sentul, P. O. Box 40, 68000 Sentul, Selangor Darul Ehsan, Malaysia Website Telephone Number Fax Number : www.hygienetech.com.my : +60 3 4270 8808 : +60 3 4270 8809

HYGIENETECH SDN. BHD

Date Day Venue Time : 18th July 2007 : Wednesday : Engineering Building E2-2-4 : 12pm

Attendance: 1. Khairul Adzha bin Abu Tahar 2. Mohd Nazir bin Mat Nawi 3. 'Aisy Anuarin bin Abdullah 4. Mohd Zaieri bin Mohamed 5. Abdul Razak bin Abd Halim 6. Hasan bin Hj. Abd Rahman 7. Ahmad Ibrahim Ahmad 8. Mohamed Elhadi 9. Abdul Jalil bin Kader Mastan 10.Mohd Khairil bin Mokhtar 11.Samir Nassir Hagos
ITEM 1.0 1.1 1.2

0313753 0337553 0335441 0232565 0230397 0227369 0217407 0222603 0338025 0123727 0128293
ACTION

MATTER DISCUSSED GENERAL The meeting began at 12.10pm Minutes of previous meeting 1.2.1 The post for each member established 1.2.2 Advice from the advisor, Dr Mohd Radzi is needed from time to time since the organization is very new. SPECIFIC ISSUES Generate Main Activity 2.1.7 CEO starts the discussion by asking each member to give any idea regarding suitable activity or project. 2.1.8 Many members come out with ideas. The idea is summarized in appendix 1. 2.1.9 Discuss and evaluate the ideas. Serious discussion is conducted by CEO and secretary. 2.1.10 Every member in the company agrees to make new design for compressed dustbin. Other matters 2.2.4 CEO asks every member to think about the realistic of the product.

2.0 2.1

2.2

47

2.2.5 2.2.6 2.3

Every member will focus to the new design according to their profession. Ask every member to think about companys name and logo.

Date of next meeting The meeting is fixed to follow class time. Meeting will start immediately after Dr. Mohd Radzi finishes his lecturer at every class.

The meeting adjoined at 1 pm.

Prepared by; . Secretary

Checked by;

.................................... Chief Executive Officer

Description Staff Special design to transfer an aluminum piece from stock items to the lab for quality inspection. The trolley can Trolley Hasan occupy many pieces. Recently people used hand and forklift to transfer it. Electronic hanger with cover that will ensure your apparel Hanger keep drying in bad weather. Cover will close in raining Khairul Adha day and open in sunny day. Walky New design to improve ergonomic. It will tight up at your Nazir Talkie hand and it look like you are wearing a watch. To add a compresser in an office dustbin. The lip will open Compressed when you hit the stepper and trash is then to be Nazir Dustbin compressed after the lip close. Dustbin be more tidy and people will empty the bin when it really full. Double New design for white box duster. It spares some space for Purpose Nazir marker pens. Duster

Idea

48

6th Mile, Jalan Sentul, P. O. Box 40, 68000 Sentul, Selangor Darul Ehsan, Malaysia Website Telephone Number Fax Number : www.hygienetech.com.my : +60 3 4270 8808 : +60 3 4270 8809

HYGIENETECH SDN. BHD

Date Day Venue Time : 23rd July 2007 : Monday : Engineering Building E2-2-4 : 11.50am

Attendance: 1. Khairul Adzha bin Abu Tahar 2. Mohd Nazir bin Mat Nawi 3. 'Aisy Anuarin bin Abdullah 4. Mohd Zaieri bin Mohamed 5. Abdul Razak bin Abd Halim 6. Mohamed Elhadi 7. Abdul Jalil bin Kader Mastan 8. Mohd Khairil bin Mokhtar 9. Samir Nassir Hagos Absent with reason: 1. Hasan bin Hj. Abd Rahman 2. Ahmad Ibrahim Ahmad
ITEM 1.0 1.1 1.2 2.0 2.1

0313753 0337553 0335441 0232565 0230397 0222603 0338025 0123727 0128293

0227369 0217407
MATTER DISCUSSED ACTION

GENERAL The meeting began at 11.50am Minutes of previous meeting 1.2.3 The idea of the product will be postponed to the next meeting SPECIFIC ISSUES Get Logo and Companys name 2.1.11 CEO decides to have own logo and company name. 2.1.12 All members have to suggest through drawing. Every body have to draw his own logo. 2.1.13 The company name had been proven by all members. 2.1.14 HygieneTech Sdn. Bhd. will start to operate from now. Other matters 2.2.7 Mechanism of the product should suit user

2.2

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2.3

Date of next meeting The meeting is fixed to follow class time. Meeting will start immediately after Dr. Mohd Radzi finishes his lecturer at every class.

The meeting adjoined at 12.05 pm. Prepared by; Checked by; . Secretary

.................................... Chief Executive Officer

50