FACULTY OF APPLIED SCIENCE

DIPLOMA IN INDUSTRIAL CHEMISTRY (AS115)

FUNDAMENTALS OF
ENTREPRENEURSHIP (ENT300)

BUSINESS NAME : DESIGN EVOLUTION

CORPORATION PRODUCT NAME : SMART LOCK
SENSOR HOSE

PREPARED FOR :

MADAM ELIY NAZIRA BINTI MAT NAZIR

PREPARED BY :

MUHAMMAD SHAFIK BIN MAT INTAN 2016474448

NUR AMIRAH BINTI LAKSEMANA 2016495264
NUR FARAHANIM NAJWA BT NORMAN 2016457516
NURUL JANATUL AFIQAH BT ABDUL AZIZ 2016495052
SITI ZULAILA BINTI OSMAN 2016618472

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LETTER OF SUBMISSION

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 LETTER OF SUBMISSION

Diploma in Industrial Chemistry (AS115)

Faculty of Applied Sciences
University Technology MARA
Perlis 02600 Arau Perlis

21st October 2018

Madam Eliy Nazira binti Mat Nazir

Lecturer of Fundamentals of Entrepreneurship (ENT300)
Faculty of Business and Management
University Technology MARA
Perlis 02600 Arau Perlis

Madam,

Submission of the Business Plan (ENT 300)

Attach is the business plan title “DESIGN EVOLUTION CORPORATION -

SMART LOCK SENSOR HOSE” to fulfill the requirements as needed as
university requirements.

Below is the list of the group members that involved in completing this business
plan:

Muhammad Shafik bin Mat Intan 2016474448

Nur Amirah binti Laksemana 2016495264
Nur Farahanim Najwa binti Norman 2016457516
Nurul Janatul Afiqah binti Abdul Aziz 2016495052
Siti Zulaila binti Osman 2016618472

Thank you,

Yours sincerely

..........................
Muhammad Shafik bin Mat Intan
General Manager

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ACKNOWLEDGEMENT

4
 ACKNOWLEDGEMENT

Assalammualaikum wbt,

Alhamdulillah, praise to Allah S.W.T for the completion of this Business Plan as one
of the requirement that need to be accomplish in the course work assessment for the
code ENT 300.

Special thanks to our parents in supporting us to complete this business plan. This
business plan has been prepared with the cooperation and support from many people.
Besides, not to be forgotten to our lecturer which are Madam Eliy Nazira binti Mat Nazir
and her kindness in helping us during the process of completion of this project work. She
have given us a good service by providing useful information to us. Without her, we
would not be able to complete this business plan.

Through these problems we manage to become more organize and mature in

dealing with problems that occur during our research. This business plan covers
organization, marketing, operation, financial and training plan and any other information
needed by a new entrepreneur as a guide to start this business.

Lastly, to those who had involved and contributed directly or indirectly to this
business plan, we are very grateful to them for the effort and initiative that they have
shown in our project until we successfully completed our business plan. I apologize to all
other unnamed person who helped us various ways to complete this project and we
hope this business plan report can give us little bit about Entrepreneurship world and
fact about how to become a entrepreneur in future.

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TABLE OF CONTENTS

6
TABLE OF CONTENTS

CONTENTS PAGE (S)

LETTER OF SUBMISSION
ACKNOWLEDGEMENT
TABLE OF CONTENT
EXECUTIVE SUMMARY
1 INTRODUCTION
1.1 Name of Business
1.2 Nature of Business
1.3 Location of the Business
1.4 Date of Business
Commencement

2 PURPOSE
2.1 To evaluate the project
viability and growth
potential

2.2 To apply for loans or

financing facilities from the
relevant financial
institutions

2.3 To act as a guideline

for the management of the
proposed business

2.4 To allocate
business resources
effectively
3 BUSINESS BACKGROUND
3.1 Vision and mission
3.2 Organizational chart
3.3 Logo and Motto

4 BACKGROUND OF
PARTNERSHIPS
4.1 General Manager
4.2 Administration Manager
4.3 Marketing Manager
4.4 Operation Manager
4.5 Financial Manager

5 LOCATION OF BUSINESS
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 5.1 Physical Location of the
Project
5.2 Advantage of the
Location

6 MARKETING PLAN
6.1 Marketing Objectives
6.2 Description of Product
6.3 Target Market
6.4 Market Size
6.5 Competitors
6.6 Market Share
6.7 Sales Forecast
6.8 Market Strategy
(Marketing Mix)
6.9 Organization Chart for
Marketing Department
6.10 Man Power
Planning and Schedule of
Remuneration
6.11 Marketing Budget

7 OPERATIONAL PLAN
7.1 Process Planning
for Manufacturing
7.2 Operations Layout
7.3 Production Planning
7.4 Material Planning
7.5 Machine and
Equipment Planning
7.6 Man Power Planning
7.7 Overhead Requirement
7.8 Total Operations Cost
7.9 Cost Per Unit
7.10 Productivity Index (PI)
7.11 Business and Operation
Hours
7.12 Operations Budget

8 ADMINSTRATION PLAN
8.1 Organizational Chart
for Administration and
Finance Department
8.2 Man Power Planning
8.3 Office Furniture,
Fitting and Office Supplies

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 8.4 Administration Budget

9 FINANCIAL PLAN
9.1 Operating Budget
9.2 Project Implementation
Cost and Sources of Finance
9.3 Fixed Asset
Depreciation Schedule
9.4 Loan and Hire Purchase
Depreciation Schedule
9.5 Proforma Cash Flow
Statement
9.6 Proforma Income
Statement
9.7 Proforma Balance Sheet
9.8 Financial Ratio Analysis

CONCLUSION

APPENDICES

PARTNERSHIP AGREEMENT

9
 EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

Design Evolution Corporation offers smart lock sensor hose product and service to
customers, providing the set of hose with smart lock sensor that the give high
satisfaction of consumer.

Our clients are the person that involve in the construction field with affordable price

1
of product. We also targeting company that have project regarding with development all
over Malaysia, either in Peninsular or Sabah and Sarawak. Design Evolution Corporation
offers good quality of hose with lock sensor that will give many benefits to consumer.

Across the Northern area of Malaysia, that consist of Perlis, Kedah and Penang
particularly the Design Evolution Corporation business has seen an explosion of growth
over the year. Sungai Petani is an area that have rapid development rather other area in
Kedah. Moreover, Northern Malaysia do not have any influence company that supply
household equipments like IKEA at the Southern Malaysia. Hence, it cause the high
demand of services from Design Evolution Corporation.

Design Evolution Corporation marketing strategy is to emphasize the quality and

price of our product and also service. We offer the affordable price because we want to
help consumer have comfortable toilet for all level of ages. Thus, we develop marketing
strategy that gives attraction to construction company for hire our services.

The management of Design Evolution Corporation consists of 5 lead workers is

Muhammad Shafik, Nur Amirah, Nur Farahanim Najwa, Nurul Janatul Afiqah and Siti
Zulaila. Five partners will be take role responsibilities together instead different duties
and portfolio of partners.

Already we have service commitments plan to aggressively build our brand through
newspaper, ads and business catalogs. The Design Evolution Corporation will sure can
fulfill the problems that faced by consumer when using toilet in public throughout
Malaysia.

1
 INTRODUCTION

1. Introduction
1.1. Name of the Business
Our company is name’s Design Evolution Corporation (DEVO Corp). We use the

name Design Evolution Corporation, as our company’s name is because we want to

make some evolution for the hose that been used in public place at Sungai Petani,

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 Kedah area and throughout Malaysia. We hope that we can attract more construction

company to hire our services for their upcoming project.

1.2. Nature of Business

Our main activity is provide smart lock sensor hose services. We make several

innovation from the usual hose used by consumer in every public place. We not only

provide the hose with sensor but we also provide the maintenance for our services.

1.3. Location of the business

The premise is located at Taman Bandar Baru, Jalan Cinta Sayang,08000

Sungai Petani, Kedah. The chosen location can be considered as strategic since it is

near to the town of Sungai Petani, Kedah. In addition, Sungai Petani also have rapid

development rather than Alor Setar or Jitra.

1.4. Date of business commencement

We have registered our company on 25 November 2019. Our business start to
move on 1st January 2020 and this date are same as our company date of
commencement.

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 PURPOSE

2. Purpose of preparing the business plan

Business plan is a set of documents prepared by organizations’ management to

summarize its marketing, operational and financial objective for the near future. It
provides step by step guideline once we started our business. It also provides an idea on
how to achieve the organization goals.this business plan is very important to a new
company like Design Evolution Corporation because it may help us to maintain our
business longer in the Malaysia market.

2.1. To evaluate the project viability and growth potential

Everyone in the company will use the information contained in the company’s
business plan, whether to set performance targets, guide decision-making with regard to
on-going operations, or assess personnel performance in terms of their ability to meet
objectives set forth in the business plan. A company;s performance and progress can be

1
measured within planned goals involving sales, expenditures, time frame and strategic
direction. Business plans also hep an entrepreneur or business manager identify and
focus on potential problem areas, both inside and outside the company.

2.2. To apply for loans or financing facilities from the relevant

financial institutions

The business plan shows the financial strength of the company especially when
applying for loans and to convince the investors towards providing funds or other
financial institution the investor or financial institutions will evaluate a company’s ability to
handle more debt and, in some cases, equity financing. The business plan documents
the company’s cash flow requirements and provides a detailed description of its assets,
capitalization and projected financial performance. It provides potential lenders and
investors with verifiable facts about a company’s performance so that risks can be
accurately identified and evaluated. If the company has good business planning, they
will be interested in investing in the company. For the financial institutions, they will be
mare confident in lending t the company to finance the company’s business activities.
So, the good business plan will plays an important role to the company to get their fund
for financing the business activities.
2.3. To act as a guideline for the management of the proposed business

This business plan is a guideline for the organization in setting, planning, managing,
handling and controlling our business for day management, budget, financial forecast,
strategies, target market and even long term goal. It is also as a master plan of an
organization that necessary to calculate the effectiveness on running such business. A
successful business leader knows that a well-written business plan can provide day to
day operational assistance. Organization that stay concentrated on their business plan
have a higher chance of success, when use as a road map, it can help business leaders
stay focused on business growth, mission and organization’s goals.

2.4. To allocate business resources effectively

The business plan plays a key role in allocating resources throughout a business so
that the company can meet the organization’s objectives. The company can use the
business plan as a road map for help the business leaders stay focused on growth,

1
mission and organization’s objectives. For example, when a company reviewing their
business plan to cover the next stages, it’s important to be clear on how they will allocate
their resources yo make their strategy work. If a particular department in a company has
been given a target, the business plan should allocate enough resources to achieve it.
These resources may already be available or may be generated by future activity. This
could means, the company should recruiting more office staff,spending more on
marketing or buying more supplies and equipment. The changes in the market could
mean that there are increased opportunities for a certain division. Maximized on this by
making sure they have enough resources to increase their activities.

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 BUSINESS

3. Business Background
Table 3.1 Business Background

Name of the Business Design Evolution Corporation (DEVO

CORP)
Business Address Taman Bandar Baru, Jalan Cinta
Sayang,08000 Sungai Petani, Kedah.
Correspondence Address Taman Bandar Baru, Jalan Cinta
Sayang,08000 Sungai Petani, Kedah.
Website www.devocorporation.com
E- mail [email protected]
Telephone Number +604 7881 2598
Fax Number +604 7881 2599
Form of Business Partnership
Main Activity Smart lock sensor hose services
Date of Commencement 1 st January 2020
Date of Registration 25 November 2019
Registration Number 214578-J
Name of Bank Malayan Banking Berhad

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 Bank Account Number 162071459278

3.1 Vision and Mission

3.1.1 Vision
“The Design Evolution Corporation that provides the best customer service”
3.1.2 Mission
“We make our customers’ lives easier by replacing smart lock sensor hose with no

disruption in their work or home schedules”

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3.2 Organizational Chart *gambar formal

3.3 Logo and Motto

3.3.1 Logo
Logo description

3.3.2 Motto

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 PARTNERSHIPS BACKGROUND

4. Background of Partnership
4.1 General Manager
Table 4.1 Background of General Manager

Name of Partners MUHAMMAD SHAFIK BIN MAT INTAN

Identity Card Numbers 980622-06-5607
Permanent Address KAMPUNG BELETIK, 27200 KUALA LIPIS,

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 PAHANG.
Correspondence Address
E- Mail
Telephone Number 013-3747298
Date of Birth 22 JUNE 1998
Marital Status
Academic Qualification
Course Attended
Skills
Experiences
Present Occupation GENERAL MANAGER
Previous Business Experience

4.2 Administration Manager

Table 4.2 Background of Administration Manager

Name of Partners NUR AMIRAH BINTI LAKSEMANA

Identity Card Numbers 980807-04-5100
Permanent Address 327-9, BATU 4, KLEBANG BESAR, 75200
MELAKA
Correspondence Address UNIVERSITY TECHNOLOGY MARA

2
 PERLIS, 02600, ARAU, PERLIS.
E- Mail [email protected]
Telephone Number 012-6064976
Date of Birth 7 AUGUST 1998
Marital Status SINGLE
Academic Qualification DIPLOMA IN INDUSTRIAL CHEMISTRY

Course Attended - PROGRAM I CAN DO IT (UiTM PERLIS)

- SEMINAR KEUSAHAWANAN (UiTM
PERLIS)
Skills - COMMUNICATION : MALAY, ENGLISH
- MICROSOFT OFFICE
*microsoft word, microsoft presentation,
microsoft excel, microsoft publisher
Experiences - MISHABELLA BAKERY CAFE & BISTRO
(CASHIER AND BARISTA)
- HOME TUTOR (MELAKA)
Present Occupation ADMINSTRATION MANAGER
Previous Business Experience -

4.3 Marketing Manager

Table 4.3 Background of Marketing Manager

Name of Partners NUR FARAHANIM NAJWA BINTI NORMAN

Identity Card Numbers 980124-06-5452
Permanent Address NO. 10, ALAN SETIA JASA 16/6, TAMAN
SETIA JASA 28000 TEMERLOH, PAHANG
Correspondence Address NO. 16, LORONG 16, TAMAN SRI WANG
FASA 2, 02600 ARAU, PERLIS
E- Mail
Telephone Number 01114572573/0139464523
Date of Birth 24 JANUARY 1998
Marital Status SINGLE
Academic Qualification DIPLOMA IN INDUSTRIAL CHEMISTRY
Course Attended
Skills - COMMUNICATION: ENGLISH, MALAY
Experiences - TUTORING (PMR & SPM LEVEL)
* ENGLISH, MATHEMATICS, SCIENCE
- FAIRY BAKERY PERLIS

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 *CASHIER AND SALES GIRL
- COACHING (2014)
*ZUMBA & YOGA CLASSES
Present Occupation MARKETING MANAGER
Previous Business Experience

4.4 Operation Manager

Table 4.4 Background of Operation Manager

Name of Partners NURUL JANATUL AFIQAH BINTI ABDUL

AZIZ
Identity Card Numbers 980518-03-5950
Permanent Address LOT 3, KG KUBANG PANJANG LEMAL
17000, PASIR MAS KELANTAN
Correspondence Address UNIVERSITY TECHNOLOGY MARA
PERLIS, 02600, ARAU PERLIS
E- Mail [email protected]
Telephone Number 014-8202918
Date of Birth 18th MAY 1998
Marital Status SINGLE
Academic Qualification DIPLOMA IN INDUSTRIAL CHEMISTRY
Course Attended
Skills COMMUNICATION (ENGLISH-MALAY)
Experiences TUTORING SPM LEVEL IN 2016
Present Occupation OPERATION MANAGER
Previous Business Experience

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4.5 Financial Manager

Table 4.5 Background of Financial Manager

Name of Partners SITI ZULAILA BINTI OSMAN

Identity Card Numbers 970505-07-5364
Permanent Address 693, KAMPUNG SETOL, JALAN
BARU,13700, PERAI, PULAU PINANG
Correspondence Address UNIVERSITY TECHNOLOGY MARA
PERLIS, 02600, ARAU, PERLIS.
E- Mail [email protected]
Telephone Number 01151110697
Date of Birth 5 MAY 1997
Marital Status SINGLE
Academic Qualification DIPLOMA IN INDUSTRIAL CHEMISTRY
Course Attended
Skills - COMMUNICATION (MALAY/ENGLISH)
Experiences - BRAPS BRAND P/T PROMOTER
- OPERATOR (ZELCOS
LABORATORY/ASCROLITE
PRINTING/JINKO SOLAR)
Present Occupation FINANCIAL MANAGER
Previous Business Experience

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LOCATION BUSINESS

2
5.1 Physical location of the project. (map)
5.2 Advantage of the location.

2
MARKETING PLAN

2
6. Marketing Plan(Arial 12, BOLD)
6.1 Marketing Objectives
(i) New business
• Introduce new product – state the product, to whom, reason

product, benefit of the product

• Estimate sales and market acceptance

6.2 Description of products (Arial 12, BOLD)

This section describes the products offered by the business in detail. The

proposed products or services should be related to the needs and wants

of the target customers

Table 6.2.1 Product description

Product Description
Features • Size :
• Shape :
• Flavour :
• Odour :
• Packaging :
• Colour :
Materials 
Benefits 


Table 6.2.2 Product ilustration

2
6.3 Target market (Arial 12, BOLD)

Here, the customers’ profile in the target market area is explained. The

entrepreneur should identify the different market segments that exist in the

same market.

6.3.1 Geographic Segmentation (in a paragraph)

- Identify area + sub area (Ex : Perlis – Arau and Kangar)
- Location (Ex : Bakery shop, Restaurant)
6.3.2 Demographic Segmentation (in a paragraph)
6.3.3 Psychographic Segmentation (in a paragraph)

6.4 Market size (Arial 12, BOLD)

6.4.1 Population table

6.4.1.1 Population 1
Table 6.4.1.1 Perlis

Type of outlet No of outlet No of items Price/unit Total

to needed (RM)
(unit)
• Shopping 12 120 232.90 27948.00
Mall
• RnR 3 30 232.90 6987.00
• Education 14 1400 232.90 326060.00
al
institution
• Bus 4 40 232.90 9316.00
station
• Public 12 48 232.90 11179.20
building
Total 45 1638 381490.20

Target market = 45 x 9%
= 4 outlet

2
 6.4.1.2 Population 2
Table 6.4.1.2 Kedah

Type of outlet No of outlet No of items Price/unit Total

to needed (RM)
(unit)
• Shopping 9 90 232.90 20961.00
Mall
• RnR 4 40 232.90 9316.00
• Education 6 600 232.90 139740.00
al
institution
• Bus 10 100 232.90 23290.00
station
• Public 12 48 232.90 11179.20
building
Total 41 878 204486.20

Target market= 41 x 9%
= 4 outlets

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 6.4.1.3 Population 3
Table 6.4.1.3 Pulau Pinang

Type of outlet No of outlet No of items Price/unit Total

to needed (RM)
(unit)
• Shopping 17 170 232.90 39593.00
Mall
• RnR 6 60 232.90 13974.00
• Education 12 1200 232.90 279480.00
al
institution
• Bus 16 160 232.90 37264.00
station
• Public 12 48 232.90 11179.20
building
Total 63 1638 381490.20

Target market= 63 x 9%
= 6 outlets
Total target market= 14 outlets per month
6.4.2 Total market size
Total market size = Population 1 + Population 2 + Population 3
= Total Table 6.4.1.1 + Total Table 6.4.1.2
+ Table 6.4.1.3
= RM967,466.60/per year

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6.5 Competitors (Arial 12, BOLD)

6.5.1 Identifying competitors (3 competitors)

Table 6.5.1 Competitive analysis

Competitors Strengths Weaknesses

Competitor1 • 3 strengths • 3 weaknesses
Competitor2
Competitor3
Others

6.6 Market Share (Arial 12, BOLD)

6.6.1 Market share before the entry of your business.
Table 6.6.1Market share before the entry of your business

Competitor Before entrance Amount

(%) (RM)
Competitor1 40 386986.64
Competitor2 35 338613.31
Competitor3 25 241866.65
Our company 0 0
TOTAL 100 RM967,466.60

Use pie charts for illustration

3
 6.6.2 Adjusted market share after the entry of your business.
Table 6.6.2 Market share after the entry of your business

Competitor After Amount Percentage of

entrance (RM) loss (%)
(%)
Competitor1 36 348287.98 4
Competitor2 32 309589.31 3
Competitor3 22 212842.65 3
our business 10 96746.66 -
TOTAL 100 RM967,466.60 10

Use pie charts for illustration

6.7 Sales forecast (Arial 12,

BOLD) Table 6.7 Sales
Forecasting

Month Sales Forecast

1 RM80622.22
2 RM80622.22
3 RM80622.22
4 RM80622.22
5 RM80622.22
6 RM79009.78
7 RM79816.00
8 RM80622.22
9 RM80622.22
10 RM79412.87
11 RM79816.00
12 RM85056.41
Year 1 RM967,466.60
Year 2 Increment of 10% from Year
1
Year 3 Increment of 15% from Year
2

6.8 Market strategy (marketing mix) (Arial 12, BOLD)

6.8.2 Product - detail about the product (choose any point which is

related with your product/relevant)

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 6.8.2.1 Quality
6.8.2.2 Design
6.8.2.3 Packaging
6.8.2.4 Product Differentiation
6.8.2.5 Labeling
6.8.2.6 Product safety

6.8.3 Price
6.8.3.1 Cost based pricing – explain

Selling price= RM 114.90 + RM18(15%) + RM100(service)

= RM 232.90

6.8.4 Place
Manufacturer Wholesaler Retailer Consumer

• Manfacturer – explain
• Wholesaler – explain
• Retailer – explain
• Consumer – explain

6.8.5 Promotion (promotion mix) – Choose any relevant point

6.8.5.1 Advertising (select appropriate method)
6.8.5.2 Sales promotion (select appropriate method)
6.8.5.3 Public relation (select appropriate method)
6.8.5.4 Personal selling (select appropriate method)

6.9 Organization Chart for Marketing Department (Arial 12,

BOLD) Figure 6.9 Organizational Chart (Head of Department +

workers)

6.10 Man Power Planning and Schedule of Remuneration (Arial

12, BOLD)

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 Table 6.10List of Marketing Personnel and Schedule of

Remuneration: Head + workers

Position No of Monthly EPF SOCSO Total

Personn Salary (13 %)
el (RM) (RM) (RM)
(A) (B) (C) (A)+(B)+
(C)
Marketing 1 1400 182 28 1610
manager
Assistant 1 1000 130 20 1150
marketing
manager
TOTAL 2 2400 312 48 2760

6.11 Marketing Budget (Arial 12,

BOLD) Table 6.11 Marketing Budget

Item Fixed Monthly Other

Assets Expenses Expenses
(RM) (RM) (RM)

Fixed Asset
Signboard

Working capital
Transportation cost
Salaries
Promotion cost
Petrol
Other Expenses
Insurance and roadtax
Banner
Business card
Poster
Bunting

TOTAL

3
3
OPERATIONAL PLAN

3
7 Operational Plan (Arial 12, BOLD)

7.1 Process Planning for Manufacturing

7.1.1 Process flow chart
Activity flow chart

Greet the client

↓
Invite client into discussion
↓
Obtain and get the information from client
↓
Brief client about service, payment, term and condition
↓
Get agreement from client regarding term and condition
↓
General manager communicate to the operator to convert business

case to the system design

↓
Technician work on design of the project
↓
Call back client for discussion
↓
Operator/Technician present to the customer

↓
Getting confirmation and comment from client
↓
Redesign project if necessary
↓
Publish product design to the client
↓
Proceed project as planned
↓
Get feedback from client

7.1.2 Activity chart

1 cycle = 2 unit
1 unit = 30 minutes

Process Time Machine/ Men

(Minutes)
Equipment
Welding process 15 Welding ✓

tools

3
 Assembly component 10 Screwdriver ✓

machine
Testing process 5 Testing ✓

tools

7.2 Operations Layout

7.2.1 Layout based on the product

Office Raw material storage and warehouse

DisplaywallToilet

Storage room product Production room

Receiving area

File cabinet Surau Toilet

Admin Financial
Sofa

Receptionist Operational Marketing

7.3 Production Planning
7.3.1 Sales forecast per month
Output per month
Average sales forecast per month = RM967,466.60 /12 month
= RM80,622.22
The sales price = RM232.90
Number of output per month = Average sales forecast/Sale
price Pantry
General Manager
Meeting
RoomRoom

per
Unit
= RM80622.22/RM232.90

7.3.2 Number of output per day

If the number of working days per month is 22 days (5 days/week)

3
 = No. of output per month / No. working days per month

= 346/22

= 15.73 ≈ 16 unit per day

7.3.3 Number of units per hour

Such as daily working hour = 8 hours
= No. of output per day / daily working hours
= 16/8
= 2 unit per hour
7.4 Material Planning
7.4.1 Material Requirement Planning
7.4.1.1 Raw Material Required per Month (Bill of Material)

No Material Quantity Safety Total Price/Unit Total

(unit) Stock Material (RM) Price
Requireme (RM)
nt
1 Touch 346 17 363 35.00 12,705
sensor
2 Wires 1038 52 1090 1.70 1853
(3 colours)
3 Electronic 346 17 363 6.00 2,178
board
4 Magnetic 346 17 363 26.00 9,438
lock
5 Emergency 346 17 363 12.00 4,356
button
6 PVC pipe 346 17 363 1.70 617.1
fitting
7 Electrical 346 17 363 1.10 399.30
PVC conduit
fitting
8 Others 1725 91 1816 0.40 726.40
(electronic
component
set)
Total 32272.80

*wires, I unit=2 m= RM1.70

*PVC pipe fitting, 1 unit=2 m=RM1.70

4
 *Electrical PVC conduit fitting, 1 unit=6 pieces=RM1.10

*Others (electronic component set), 1 unit=1 set=5 parts

7.5 Machine and Equipment Planning

7.5.1 Amount of machine & equipment required (Calculate for every machine

usage)

= Planned Rate of Production per day X Standard production time

Machine productive time per day

a) Welding tools

= (22 / 480min) x 15min

= 0.69 @ 1 machine

b) Assembly component tools

= (22 / 480min) x 10min

= 0.46 @ 1 machine

c) Testing tools

= (22 / 480min) x 5min

= 0.22 @ 1 machine

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7.5.2 List of tools & equipment (purchase)

Tools No of tool Price/unit Total Cost

(RM)
(RM)
Welding tools 2 41.50 83.00
Assembly 2 270.00 540.00

component tools
Testing tools 2 301.00 602.00
TOTAL 6 1225.00

7.6 Man power Planning

7.6.1 Organization Chart for Operation Department (Arial 12, BOLD)

Figure 6.6.1 Organizational Chart (Head of Department +

workers)

Operation
Assistant manager
Operation Manager

7.6.2 A Welder/assembly Technician

component
mount /testingfor
of direct labour uired (C alculate operator
every man ower)
= (Planned Rate of Production per day/ Machine productive time

per day) x Standard production time

a) Welder/assembly component operator

22 X 30 min
480 minutes

= 1.375 @ 2 operator

b) technician/testing operator

4
 22 X 30 min
480 minutes

= 1.375 @ 2 operator

7.6.3 List of Operation Personnel and Schedule of remuneration

Table 6.6.3 Table of list of Operation Personnel and Schedule

of remuneration

Position No of Monthly EPF SOCSO Amount

personn Salary Contributio
el n
(RM) (13%) (RM) ( RM )
(RM)
Operation 1 1400 182 28 1610
manager
Assistant 1 1000 130 20 2875
operation
manager
Welder/assembly 2 1000 130 20 2300
component
operator
Technician 2 1000 130 20 2300
/testing operator
TOTAL 9085
7.7 Overhead requirement
7.7.1 Operations Overhead (indirect

labour/indirect material/insurance/maintenance

and utilities)

No Types of Overhead Monthly

Cost (RM)
1 Electricity 2,500
2 Water 500
3 Renovation 1,500
4 Telephone 400
5 Fuel 300
6 Box for transportation 350
7 Tools maintenance 250
TOTAL 5800

4
7.8 Total Operations Cost

Total Operation Cost = Direct Material Cost (total raw material) + Direct

Labor Cost (total remuneration) + Overhead Cost (total operations

overhead)

Total Operation Cost = RM32272.80+RM9085+RM5800

= RM47157.80

7.9 Cost per unit

Cost per unit = RM 47157.80

363 units

= RM129.91

7.10 Productivity Index (PI)

Productivity Index = RM80622.22

RM47157.80

= 1.71

7.11 Business and operation hours

Business hour = 8 hours per day (8.00 a.m until 5.00 p.m)
Operating hour = 8 hours per day (8.00 a.m until 6.00 p.m)

4
Working days = 5 days per week (Monday – Friday)
*Saturday, Sunday and Public holiday: closed/off day

4
7.12 Operations Budget

Item Fixed Assets Monthly Other

Expenses Expenses
(RM) (RM) (RM)

Fixed Asset
- tools and 1.225.00
equiptment
Working Capital
- raw materials 32,272.80
- salary, EPF,
SOCSO 9,085.00
- ovehead 5,800.00
Other Expenses 150.00
- office
equiptment
1,225.00 47,307.80
TOTAL

4
 ADMINISTRATION PLAN

8. Administration Plan

8.1 Organizational Chart for Administration and Finance Department

Figure 8.1 Organizational Chart

4
 General
manager

Administratio Financial
n manager manager

Office boy Clerk

8.2 Manpower Planning

Table 8.2 List of Administration Personnel and Schedule of Remuneration

Position Quantity Monthly EPF SOCSO Total

Salary (13%) (2%) (A)+(B)+(C)
(RM) (A) (RM) (B) (RM) (C)
General 1 2000 260.00 40.00 2300.00
Manager

Administration 1 1400 182.00 28.00 1610.00

Manager

Financial 1 1400 182.00 28.00 1610.00

Manager

Clerk 1 1000 130.00 20.00 1150.00

Office boy 1 900 117.00 18.00 1035.00

TOTAL 5 6700 871.00 134.00 7705.00

8.3 Office Furniture, Fitting and Office Supplies

Table 8.3.1 List of Office Furnitures

Type Quantity Price/Unit (RM) Total (RM)

Meeting table set 1 750.00 750.00

Desk 2 64.00 128.00
Chair 2 31.50 63.00
Sofa 1 250.00 250.00
Personal computer 1 500.00 500.00

4
 Printer 1 158.00 158.00
Broom + dustbin 1 10.00 10.00
White board 1 50.00 50.00
Cattle 1 20.00 20.00
TOTAL 1929.00

Table 8.3.2 List of Office Supplies

Type Quantity Price/Unit (RM) Total (RM)

File 5 5.50 27.50

Pen 50 0.60 30.00
Marker pen 10 1.50 15.00
Printer paper 2 10.00 20.00
Staples 5 1.00 5.00
Printer ink 2 20.00 40.00
TOTAL 137.50

Table 8.3.3 List of Office Fittings

Type Quantity Price/Unit (RM) Total (RM)

LED down light 5 12.00 60.00

TOTAL 60.00

8.4 Administration Budget

Table 8.4 Administration Budget

Item Fixed Monthly Other

Assets Expenses Expenses
(RM) (RM) (RM)

Fixed Asset
Furnitures, 1929.00
Fittings 60.00

Working capital
Salary, EPF, SOCSO, 7705.00
Building, 2700.00
Overhead 700.00

Other Expenses

4
Office supply, 137.50
Fuel, 300.00
Business license 240.00

TOTAL 1, 989.00 11, 105.00 677.50

5
 FINANCIAL PLAN

9 Financial Plan (Arial 12, BOLD)

9.1 Operating Budget
9.1.1 Administrative Department
9.1.2 Marketing Department
9.1.3 Operations Department

9.2 Project Implementation Cost and Sources of Finance

9.3 Fixed Asset Depreciation Schedule
9.4 Loan and Hire Purchase Depreciation Schedule
9.5 Proforma Cashfow Statement
9.6 Proforma Income Statement
9.7 Proforma Balance Sheet

9.8 Financial Ratio Analysis

9.8.1 Liquidity Ratios
9.8.1.1 Current Ratios
( table and graph)
9.8.1.2 Quick Ratios

5
 (table and graph)

9.8.2 Efficiency Ratios

9.8.2.1 Inventory Turnover Ratios
(table and graph)

9.8.3 Profitability Ratios

9.8.3.1 Gross Profit Margin
(table and graph)

9.8.3.2 Net Profit Margin

(table and graph)
9.8.3.3 Return on Assets
(table and graph)
9.8.3.4 Return on Equity
(table and graph)

9.8.4 Solvency Ratios

9.8.4.1 Debt to Equity
(table and graph)
9.8.4.2 Debt to Assets
(table and graph)
9.8.4.3 Time Interest
Earned

(table and graph)

CONCLUSION

5
 Alhamdulillah, we are grateful to finish this business plan. We have gone through
lots of new experiences and it is very beneficial for all of us in participating in this
business. We hope that our business will be progressed smoothly in the future. Our
target is that we want to achieve high profit in the involvement of this business even
though there are many rivals exist.

Unfortunately, with the good cooperation with all the subordinates we manage to
compete with the rivals as fair and square. We also hope that with our dedication and
hard work, we will achieve our vision to become the only company is the best in giving
service for smart sensor lock hose and create a benchmark for other company in the
aspect of quality standard. Before that, we should also shows our effectiveness in doing
our job and to make sure that our service will be available in Northern area of Malaysia
and also along in Peninsular Malaysia, Sabah and Sarawak.

In addition, we know that sensor lock hose service is not found in Malaysia because
Malaysian lack of awareness about the cleanliness when using toilet at public places.
Therefore, we hope can produce the great smart sensor lock hose that no one can
match with our services. We will provide full responsibility and commitment; there is no
doubt that we will achieve all these things. We are also encouraged to take any chance
that directly or indirectly in order to increase our business performance in the future
undertakings

5
 APPENDICES

PARTNERSHIP AGREEMENT

5
 With reference to the Partner Act 1961 (Revise 1974), this agreement is lawfully
made between the partners of Design Evolution Corporation (DEVO CORP) . The
reason of this partnership agreement is made in order to make sure that all the business
operation run accordingly to the schedule and the main objective of the business can be
achieved.

All the partners as below within the business organization make this agreement in
front of the lawyer Mr. Mustapha from Tiffany & Co. that our company have selected to
represent us.

It is hereby declared that all partners as mentioned below have witnessed and
agreed to accept all terms, conditions and regulations stated as follow:
This partnership is registered under the name of Design Evolution Corporation . The
partners have also agreed to accept the position in Design Evolution Corporation
enlisted as follow:

Muhammad Shafik bin Mat Intan General Manager

Nur Amirah binti Laksemana Administration
Manager Nur Farahamin Najwa bin Norman Marketing
Manager Nurul Janatul Afiqah binti Abdul Aziz Operation
Manager
Siti Zulaila binti Osman Financial Manager

It is also agreed that all profit sharing will be based on the capital contribution of
each partners. Should the company suffer from any loss, of which the negligence caused
by anyone of the partners, that partner will be responsible for the loss.
All the money owns by the partnership or money received on behalf of the partnership
must be credited to the agreed partnership current bank account.
It is also agreed that if in case where any of the partners want to withdraw from the

5
partnership, then she must give a one month notice to the other partners.

Each of the partners :

◆ Must have and act in good manner and has faith and be trustworthy between each
partner in all business matters.
◆ Must give full effort in any way for the success of the company
◆ Must keep all important information relating to the business confidential from people
outside the business organization.
◆ Must settle all personal problems without involving the company.
◆ All the partners is strictly forbidden (except with the consent from all the partners) to:

- Give or transfer own share to the public or people outside the business organization.
- Accept, borrow or lend money owned by the business to other people outside the
business organization except regarding on business matter.
- Accept or borrow money owned by the business for personal use. If any partners have
borrowed any money or asset, payback or recovery must be made in one month from
the date borrowed without any interest.
- Act or become a surety to any side or person in any activity that can jeopardize the
partnership deed or agreement.
- Dispose any asset or liability such as debts, money, or others owned by the partners.
- If any partners dies or become paralyzed that may bring difficulty for her to perform her
work, the next-of-kin must give a written notice in between 45 days to other partners if
he/she wants to become a partner, if there is no notice between those periods, the next-
of-kin will receive back the capital contributed by the decreased or the paralyzed partner
according to the agreed proportion.
- This agreement can be changed or dissolved if agreed by all the partners under a
memorandum signed by all of the partners.
- It is also agreed that any action that may not fall under this agreement can be taken
action or revised under the partnership act 1961 (Revised 1974).

5
 Verify, I am Muhammad Shafik bin Mat Intan, I/C number 980622-06-5607, address
Kampung Beletik, 27200 Kuala Lipis, Pahang agreed to be part of partner for Design
Evolution Corporation. Which is located at Taman Bandar Baru, Jalan Cinta Sayang,
08000 Sungai Petani, Kedah. With a contribution of 40% of the total share of RM
100,000, I promise to accomplish every duty assigned and willing to give full commitment
towards the organization management. I also promise to obey the rules and the
regulations as states in Design Evolution Corporation.

Yours truly,

.............................
Muhammad Shafik bin Mat Intan
980622-06-5607

First witness,

..............................
Nur Amirah binti
Laksemana 980807-04-
5100

Second witness,

..............................
Nur Farahanim Najwa binti Norman
980124-06-5452

Third witness,

.................................
Nurul Janatul Afiqah binti Abdul
Aziz 980518-03-5950

Fourth witness,

..............................
Siti Zulaila binti
Osman 970505-07-
5364

5
 Verify, I am Nur Amirah binti Laksemana, I/C number 980807-04-5100, address 327-
9, Kampung Permatang, Batu-4, Klebang Besar 75200 Melaka agreed to be part of
partner for Design Evolution Corporation. Which is located at Taman Bandar Baru, Jalan
Cinta Sayang, 08000 Sungai Petani, Kedah. With a contribution of 15% of the total share
of RM 100,000, I promise to accomplish every duty assigned and willing to give full
commitment towards the organization management. I also promise to obey the rules and
the regulations as states in Design Evolution Corporation.

Yours truly,

.............................
Nur Amirah binti
Laksemana 980807-04-
5100

First witness,
..............................
Muhammad Shafik bin Mat Intan
980622-06-5607

Second witness,

..............................
Nur Farahanim Najwa binti Norman
980124-06-5452

Third witness,

.................................
Nurul Janatul Afiqah binti Abdul
Aziz 980518-03-5950

Fourth witness,

..............................
Siti Zulaila binti
Osman 970505-07-
5364

5
 Verify, I am Nur Farahanim Najwa binti Norman, I/C number 980124-06-5452,
address No. 10, Alan Setia Jasa 16/6, Taman Setia Jasa, 28000 Temerloh, Pahang ,
agreed to be part of partner for Design Evolution Corporation. Which is located at Taman
Bandar Baru, Jalan Cinta Sayang, 08000 Sungai Petani, Kedah. With a contribution of
15% of the total share of RM 100,000, I promise to accomplish every duty assigned and
willing to give full commitment towards the organization management. I also promise to
obey the rules and the regulations as states in Design Evolution Corporation.

Yours truly,

.............................
Nur Farahanim Najwa binti Norman
980124-06-5452

First witness,

.............................
Muhammad Shafik bin Mat Intan
980622-06-5607

Second witness,
..............................
Nur Amirah binti
Laksemana 980807-04-
5100

Third witness,

..............................
Nurul Janatul Afiqah binti Abdul
Aziz 980518-03-5950

Fourth witness,

.................................
Siti Zulaila binti
Osman 970505-07-
5364

5
 Verify, I am Nurul Janatul Afiqah binti Abdul Aziz, I/C number 980518-03-5950,
address Lot 3, Kampung Kubang Panjang Lemal 17000, Pasir Mas Kelantan agreed to
be part of partner for Design Evolution Corporation. Which is located at Taman Bandar
Baru, Jalan Cinta Sayang, 08000 Sungai Petani, Kedah. With a contribution of 15% of
the total share of RM 100,000, I promise to accomplish every duty assigned and willing
to give full commitment towards the organization management. I also promise to obey
the rules and the regulations as states in Design Evolution Corporation.

Yours truly,

.............................
Nurul Janatul Afiqah binti Abdul
Aziz 980518-03-5950

First witness,
..............................
Muhammad Shafik bin Mat Intan
980622-06-5607

Second witness,

..............................
Nur Amirah binti
Laksemana 980807-04-
5100

Third witness,

.................................
Nur Farahanim Najwa binti Norman
980124-06-5452

Fourth witness,

..............................
Siti Zulaila binti Osman

6
970505-07-5364

Verify, I am Siti Zulaila binti Osman, I/C number 970505-07-5364, address 693,
Kampung Setol, Jalan Baru, 13700, Perai, Pulau Pinang agreed to be part of partner for
Design Evolution Corporation. Which is located at Taman Bandar Baru, Jalan Cinta
Sayang, 08000 Sungai Petani, Kedah. With a contribution of 15% of the total share of
RM 100,000, I promise to accomplish every duty assigned and willing to give full
commitment towards the organization management. I also promise to obey the rules and
the regulations as states in Design Evolution Corporation.

Yours truly,

.............................
Siti Zulaila binti
Osman 970505-07-
5364

First witness,

..............................
Muhammad Shafik bin Mat Intan
980622-06-5607

Second witness,

..............................
Nur Amirah binti
Laksemana 980807-04-
5100

Third witness,

.................................
Nur Farahanim Najwa binti Norman
980124-06-5452

Fourth witness,

..............................
Nurul Janatul Afiqah binti Abdul
Aziz 980518-03-5950