REALAS SULFURIC

ACID ENTERPRISE
SUBMITTED TO:
ROSLAN ARIFF BIN MD. MUSTAFA
ASD4AG

1. ABDUL LATIF BIN AKIP 2012847704

2. MUHAMMAD SAMSURI BIN SAMSUDIN 2012261622
3. MUHAMMAD RAHIMI BIN ZAHURI 2012601022
4. NUR FARIZAH BT MOHD GHAZALI 2012299264
5. NOOR ASMA BT FAKERURAZI 2012636508
6. ERMA HAFIZA BT IBRAHIM@ABDUL AZIZ 2012667394
1.0 INTRODUCTION

1.1 Name of Company

REALAS SULFURIC ACID ENTERPRISE

1.2 Nature of Business

Sulfuric acid is now one of the most widely used chemicals. It was probably little

know before the 16th cent. It was prepared by Johann Van Helmont (c. 1600) using

destructive distilation of gree vitrol (ferrous sulfate) by burning sulfur. The first major

industrial demand for sulfuric acid produced at Nordhausen from green vitroul andi it

was expensive. The process for its synthesis by burning sulfur with saltpeter

(potassium nitrate) was first used by Johann Glauber in the 17th cent. 1740 it was

soon superseded by the lead chamber proses, invented by John Roebuck in 1746 and

since improved by many other. The contact proses was originally developed c. 1830

by Peregrine Philips in England. The sulfuric acid is not use widely until a need for

concentrated acid arose, particularly for the manufacture of synthesic organic dyes.

1.3 Industrial Profile

Our industry produce sulfuric acid because it the main chemical used in many

industry.
1.4 Business Profile

Our business is located at Lot 136, Jalan Gebeng 216, Mukim Sungai Karang, Daerah

Kuantan, Pahang Darul Makmur. We choose this location because it is far from

population and the area provided is suitable with our planning of the factory. In

addition, the price of rent building site offered is affordable which it give us s lot of

advantages to operate our business. Besides that, in term of facilities, Gebeng is one

of advancing city that provides many sophisticated facilities that can ease our business

to operate.

1.5 Date of business commencent: 2 February 2016

1.5.1 Business Hours

Monday-Saturday : 9.00 a.m-5.00 p.m

Lunch time : 12.30 a.m-2.30 p.m

1.5.2 Operation hours

Monday-Sunday : 24hours

 1.00 a.m-8.00 a.m

 8.00 a.m-4.00 p.m

 4.00 p.m-1.00 a.m

Lunch Time :

 4.00 a.m-5.00 p.m

 1.00 p.m-2.30 p.m

 7.00 p.m-8.00 p.m

Our business hours in REALAS sulfuric acid enterprise is start from Monday until

Saturday in busines hours while in the factory will operate 24 hours start from

Monday until Saturday . There are 3 shift will take over in the factoryfor every 8

hours. Meanwhile on weekday, no operation will be done.

1.6 Factor in selecting the proposed business

Nowadays, the demand of using sulfuric acid keep increasing as it provide a lot of

uses and can be the main chemical in the product of industry. Since there are high

demand and low productivity that resulting crisis in malaysia, this business can helpto

improve the economy and help the unemployment problem in Malaysia. Furthermore,

the sulphuric acid will help the users to get immediate necessities. Next, the sulfuric

acid help to fulfill the customer needed.

1.7 Future prospects of the business

Our products target production is to target the manufacturing industry to the consumer

such as soaps, detergents, fertilizers and various. besides the production of sulfuric

acid by the intiative to hurt the junior high school level and the university to study and

used for learning purposes. Firstly our company distributes this production only in

sarawak and sabah for the beginning because manufacturing sulfuric acid is widely

compare to other states including Sabah and Sarawak we also planed to monopoly the

hold sabah and sarawak after that we export to the internasional market.
2.0 PURPOSE OF PREPARING THE BUSINESS PLAN

2.1 To evaluate the project growth potential

2.1.1 This business plan is prepared by REALAS Sulphuric Acid

Enterprise for the purpose of making decision process in produce the

product with a perfect information about our company.

2.2 To allocate business resources effectively

2.2.1 This business plan is prepared by REALAS Sulphuric Acid

Enterprise to promote a quality sulfuric acid that can be used in many

industries such as paint industries, fertilisers industries, and many more.

2.3 To act as a guideline for the management of the proposed business

2.3.1 This business plan is prepared by REALAS Sulphuric Acid

Enterprise as a guideline for managing for proposed venture.

3.0 COMPANY BACKGROUND

3.1 Company Background

Name of Company Realas Enterprise

Business Address Lot 136, Jalan Gebeng 216, Mukim Sungai

Karang, Daerah Kuantan, Pahang Darul

Makmur

Correspondence Address www.facebook.com/realas

Telephone Number 03-9543 4245

Form of Business Partnership

Main Activity Supply Sulphuric Acid for Industrial

Date of Commencement 2 February 2016

Date of Registration 2 September 2016

Registration Number 146096-Ck

Name of bank Bank Islam Malaysia Berhad

Bank Account Number 17467807535679

4.0 OWNER AND PARTNER BACKGROUND

4.1 General Manager

Name of Partners Abdul Latif Bin Akip

Identity Card Numbers 941027-07-5243
Permanent Address C. C 170 Mk 12 Sungai Nibong Kecil 11900
Bayan Lepas Pulau Pinang
Telephone Number 017-4579729
Date of Birth 27 October 1994
Marital Status Single
Academic Qualification Diploma in Industrial Chemistry
Course Attended Entrepreneurship
Skills Communication skill, Leadership, Good
Listener
Experiences Part Time Casher at Sham Interprise and Mak
Tom Nasi Kandar
Present Occupation CEO
Previous Business Experience Sales Online
Correspondence Address www.facebook.com/Abdullatif
 4.2 Administration Manager

Name of Partners Muhammad Rahimi Bin Zahuri

Identity Card Numbers 940922-14-6285
Permanent Address No. 27 Jalan Mutiara 4/5, Taman Sri Nanding
43100, Hulu Langat Selangor
Telephone Number 012-6465594
Date of Birth 22 September 1994
Marital Status Single
Academic Qualification Diploma in Industrial Chemistry
Course Attended Entrepreneurship
Skills Communication Skill, Critical Thinking
Experiences Waiter At Kenny Rogers Roaster
Present Occupation Production Manager
Previous Business Experience Online Business (Beg Bisness)
Correspondence Address www.facebook.com/Rahimi
 4.3 Marketing Manager
Name of Partners
Identity Card Numbers
Permanent Address
Telephone Number
Date of Birth
Marital Status
Academic Qualification
Course Attended
Skills
Experiences
Present Occupation
Previous Business Experience
Correspondence Address
Muhammad Samsuri Bin Samsudin
940906-07-5595
Lot 258, Chenaani, 14320 Nibong Tebal,
Seberang Prai Selatan, Pulau Pinang
012-4570140
6 September 1994
Single
Diploma in Industrial Chemistry
Entrepreneurship
Communication Skill, Critical Thinking, Good
in Handling Instrument
Marketing Assistant (At Wagas Sport)
Marketing Assistant
Marketing Assistant
www.facebook.com/Samsuri
 4.4 Operation Manager

Name of Partners Erma Hafiza Bt Ibrahim @ Abd Aziz

Identity Card Numbers 940402-11-5944
Permanent Address 515-1 Kampung Darat Penunjuk Kijal, 24100
Kemaman Terengganu
Telephone Number 013-9332805
Date of Birth 2 April 1994
Marital Status Single
Academic Qualification Diploma in Industrial Chemistry
Course Attended Entrepreneurship
Skills Communication Skill, Critical Thinking,
Computer Skill
Experiences Marketing Assistant at Kijal Burger, Waitress at
Awana Kijal Beach Resort
Present Occupation Human Resource
Previous Business Experience Promoter in Pytoscience Steam Cell Business.
Correspondence Address www.facebook.com/DatinErma
 4.5 Financial Manager
Name of Partners
Identity Card Numbers
Permanent Address
Telephone Number
Date of Birth
Marital Status
Academic Qualification
Course Attended
Skills
Experiences
Present Occupation
Previous Business Experience
Correspondence Address
Nur Farizah Bt Mohd Ghazali
940504-03-5574
Lot 2291, Lorong Raja Abdullah, Kampung
Kota, 15100 Kota Bharu, Kelantan.
0195032909
04 May 1994
Single
Diploma In Industrial Chemistry
Entrepreneurship
Communication skill, Good in Handling Money
Cashier at Sunway Pyramid
Financial Manager
Promoter for Pytoscience Steam Cell
www.facebook.com/Farizah
 4.6 Financial Manager
Name of Partners
Identity Card Numbers
Permanent Address
Telephone Number
Date of Birth
Marital Status
Academic Qualification
Course Attended
Skills
Experiences
Present Occupation
Previous Business Experience
Correspondence Address
Noor Asma Bt Fakerurazi
930525-03-5638
H-200 Kampung Gual Periok, 17200 Rantau
Panjang, Kelantan.
014-5204149
25 May 1993
Single
Diploma In Industrial Chemistry
Entrepreneurship
Communication skill
Cashier at Pacific
Financial Manager
Promoter for Pytoscience Steam Cell
www.facebook.com/Asma
5.0 LOCATION OF BUSINESS

5.1 Lot 136, Jalan Gebeng 216, Mukim Sungai Karang, Daerah Kuantan, Pahang
Darul Makmur.
6.0 ADMINISTRATIVE PLAN

6.1 Vision

6.1.1 To be the most famous company of sulfuric acid that has many useful

functions to people in Malaysia and international.

6.2 Mission

6.2.1 To introduce sulfuric acid among Malaysian in our country

6.2.2 To increase our company’s marketing products and well-known to others

6.2.3 To produce a lot of products made from sulfuric acid

6.2.4 To create spirit of teamwork and sense of belonging, encourage two way

communication, provide employee welfare in order to recognise the

importance of employees and enchance their development productivity and

morale.
6.3 Logo

Our logo show the arrow, earth map, and the round-bottom flask. The arrow

means that the waste obtained from sulfuric acid can be recycle back since

contact process involved. Besides that, it also give meaning that we will

always look forward and struggle to be at the top. The earth map shows that

our products of sulfuric acid will be known to people and the demanding will

keep increasing one day. In our logo, the round-bottom flask showed that the

process of sulfuric acid involved the use of chemicals.Next, it also bring the

meaning that all of our partnership in the same course which industrial

chemistry.
 At the top of the round bottom flask, there are a few bubbles starting from the

smallest one until the biggest one. It stand for our business that will be success

years by years. The word realas is form from the combination of our

partnership’s name. Customer Our Priority is the tag line of our company

besides be the principle to each of us.The last one is the organic and inorganic

structures is to show that we are all chemistry student and chemistry is always

in our heart forever.

6.4 Motto

Customers’s demanding is our priority.

6.5 Organization Chart

C.E.O

ABDULLATIF BIN AKIP

FINANCIAL MANAGER
PRODUCTION
NUR FARIZAH BT MOHD GHAZALI
MUHAMMAD RAHIMI BIN ZAHURI
NOOR ASMA BT FAKERURAZI

HUMAN RESOURCE MARKETING

ERMA HAFIZA BT MUHAMMAD SAMSURI

IBRAHIM @ ABD AZIZ BIN SAMSUDIN
6.6 Manpower Planing

POSITION NO OF PERSONNEL
C.E.O 1
MARKETING 1
PRODUCTION 1
HUMAN RESOURSE 1
FINANCE 2
6

6.7 Schedule of Tasks and Responsibilities

POSITION TASK AND RESPONSIBILITIES

C.E.O RESPONSIBLITY
 Controlling development REALAS Enterprise
TASK
 Setting strategy and vision
 Sets the direction
 Sets budgets, form partnerships, and hires a team to steer the
company accordingly
 Building culture

MARKETING RESPONSIBLITY
 planning and executing the conception, pricing, promotion, and
distribution of products to promote changes take place to meet
the needs and objectives
TASK
 Indentify the market area and business location
 Collect information and data of customers
 Segmenting the market
PRODUCTION Planning  Capacity
 Location
 Scheduling
 Make-or-buy
 Layout
 Maintance
 Process

Control  Quality
 Inventory

Organization  The degree of centralization

 Subcontract

 Employes hired or throw

 Excess time
Staffing

 Directing the work

 Incentives plan
Directing  Job assingment
 HUMAN RESPONSIBILITY
RESOURSE
 Manage human resourse department
TASK
 Ensure the rules of working are followed

FINANCE RESPONSIBLITY
 Manage the flow of money and overseer the salary of the
workers
TASK
 Providing and interproting financial information
 Monitoring and interpreting cash flows and predicting future
trends
 Analysing change and advising accordingly
 Formulating strategies and long-term business plans
 Analysis competitors and market trends
 Prepare budget for the company-related tasks and matters such
as investment or purchase

6.8 Schedule of Remuneration

6.8.1

Position Qty Salary EPF SOCSO TOTAL

1.75%
(RM) 13% (RM)
(RM)
(RM)
CEO 1 7000 910 122.50 7000
MARKETING 1 6000 780 105 6000
PRODUCTION 1 6000 780 105 6000
HUMAN 1 5000 650 87.50 5000
RESOURSE
FINANCE 2 3000 390 52.50 3000
TOTAL 27 000
6.9 List Of Office Equipments
6.9.1
TYPE QUANTITY PRICE/UNIT(RM) TOTAL
OFFICE FURNITURE

 Worker table 2 450.00 900.00

 Conference table 1 1800.00 1800.00

 Chair 8 90.00 720.00

 Sofa 2 195.00 390.00

OFFICE EQUIPMENT

 Computer 2 1200.00 2400.00

 Wireless printers 1 350.00 350.00

 Telephone 2 75.00 150.00

 Fire extunguisher 2 150.00 300.00

 Dustbin 4 25.00 100.00

 Stationary 2 25.00 50.00

GRAND TOTAL 7160.00

6.10 Administrative Budget

6.10.1
ITEMS FIXED MONHTLY OTHER EXPENSES
ASSET(RM) EXPENSES

Furniture and fitting 7,160

Salary (EPF & SOCSO) 27,000

Land and building 1,500,000 30,000

Business registration 1,000

Road tax/ insurance 300

TOTAL 1,507,160 57,000 1,300

6.11 Office Plan

6.11.1
 1
2
3 1
4

6 5
4
7

1 HOSTEL 5 LIBRARY
2 CANTEEN 6 MOSQUE
3 SPORT
7 SECURITY
4 REST CUBE
7.0 MARKETING PLAN

7.1 Product and Service Description

Sulfuric acid is the main chemical that is mainly used in every industry in the world.

Many institutes and industries such as schools, universities, painting industries,

detergent industries and medical industries use sulfuric acid in their production of

their products. The main reason that this product can fulfill the needs of the target

customers is because of sulfuric acid industries are less in Malaysia. Besides that, the

sulfuric acid is too difficult to find for industries to find a supplier for their products

ingredients. Our service is to supply sulfuric acid for industries and institutes in small

or large scale of sulfuric acid in many grade of the sulfuric acid such as primary grade

sulfuric acid, glacial sulfuric acid concentrated and dilute sulfuric acid. These

different grades have different uses that fulfill the needs of our customers. And

usually sulfuric acid is too high its price, we try to lowing the price of the sulfuric

base on the customer needs. We use delivery services top deliver our products in large

scale using tankers and for safety aspect of the products packaging we used PVC

packaging for small scale products

 Sulfuric Acid in Small Scales

Sulfuric Acid in Large Scales

7.2 Target Market

The main target customers are industries that need sulfuric acid in large scale such as

painting industries and detergent industries. Other target market is institutes. Many

institutes need sulfuric acid for learning. So this will be other opportunity in getting

more customers for our service. Examples of detergent companies that use sulfuric

acid in their industry are Gentle Supreme Sdn. Bhd. (Daia detergent, Boom Power

detergent) and Colgate-Palmotive Sdn. Bhd (Colgate, Fab detergent). These

companies needs 5 metric tons of sulfuric acid in order to produce their products and

they need suppliers of the main raw material of their products that is sulfuric acid.

7.3 Market Size

(Factories): Large scales

Type of outlet No of outlet No of item Price / metric Total

needed (metric ton (RM)
ton/month) (RM)
Dulux Paint 7 50 832.50 263,655.00
Colgate-Palmotive 3 50 832.50 124,875.00
Oshichem 1 50 832.50 41,625.00
Altrick Chemical 1 50 832.50 41,625.00
Breeze 4 50 832.50 166,500.00
Firacolor 1 50 832.50 41,625.00
Colourland 2 50 832.50 83,250.00
Sissons Paints 1 50 832.50 41,625.00
Abex Medical 1 50 832.50 41,625.00
Southern Lion 3 50 832.50 124,875.00

TOTAL RM 971,280.00
 (Others): small scales
Type of outlet No of outlet No of item Price Total
needed (unit) (RM) (RM)
UiTM 10 2 300.00 6000.00
UUM 1 2 300.00 600.00
UTHM 1 2 300.00 600.00
ICT College 1 2 300.00 600.00
UniSel 1 2 300.00 600.00
UniMAS 1 2 300.00 600.00
UniMAP 1 2 300.00 600.00
MRSM 48 2 300.00 26,800.00

TOTAL RM 37,000.00

7.4 Competition

In this industry of production of sulfuric acid, there are fewer competitors

because in Malaysia not many company doing sulfuric acid. The company that

produces sulfuric acid for example is Taiko Group Company. Taiko not only

supplies sulfuric acid for their customers, but they also produce clay for food

industry, PVC (polyvinylchloride) tanks and fertilizers. Their main weakness in

dealing with sulfuric acid is their price. Our strategy to compete with this

company by lowing our price and improve the delivery process of the needs of

costumer. We will do whatever we can to fulfill our customer needs. There are

some other companies that can be our competitors in Malaysia.

 Competitors Strenghts Weaknesses
See Sen Chemical Berhad, 1. Popular 1. Expensive
Johor 2. Largest sulfuric acid
plant in Malaysia
3. Has online market
4. Delivery service

Malaya Acid Works Sdn. 1. Big market size 1. Low quality

Bhd. ,Petaling Jaya, Selangor 2. worldwide

BASF See Sen 1. Popular 1. Expensive

2. Delivery service

Others 1. Permanent customer 1. Expensive

2. Convenient
packaging

7.5 Market Share

Competitor Before entrance (%) Amount (RM)

Taiko Group 40 RM1,200,000.00
Asian Chem 30 RM900,000.00
ProAcids 20 RM800,000.00
Others 10 RM700,000.00
TOTAL 100 RM300000.00

Sales

See Sen Chemical (Johor)

Malaya Acid Works
BASF See Sen
Others
Market share After the entry of your company
Competitor After entrance Amount Percentage of loss
(%)
See Sen Chemical 37 RM111,0000.00 3%
Berhad (Johor)
Malaya Acid Works 24 RM720,000.00 6%
Sdn. Bhd.
BASF See Sen 18 RM540,000.00 2%
Others 11 RM330,000.00 -
REALAS 10 RM300,000.00 -
Total 100 RM3,000,000.00 11%

Sales

See Sen
Chemical
Berhad (Johor)
Malaya Acid
Works
BASF See Sen

Others

REALAS
7.6 Sale Forecast

Year Month Sales Forecast (RM)

1 1 1,000,000

2 1,000,000

3 1,000,000

4 1,000,000

5 1,000,000

6 1,000,000

7 1,000,000

8 1,000,000

9 1,000,000

10 1,000,000

11 1,000,000

12 1,000,000

2 12,000,000

3 12,044,500
7.7 Marketing Strategy

In order to attract customers for our product, we use several strategies such as
advertisement in mass media and electronic media. This strategy will attract
customers. Besides that, we offer our product in low prices, we promote discounts
based on the quantity of a customer purchases for example, if a customer purchase 20
metric tons of our product, the price will decrease to 10%. We also use convenient
delivery services using tankers that can load 5 metric tons per tanker. We also find our
customers by meeting with other company owners and present our product and offer
them a contract of subscription to get permanent customers.

7.8 Marketing Budget

Item Fixed Assets Monthly Expenses Other Expenses

Expenses
Van 70,000 - -

Signboard 1000 - -

Salary, EPF, - 10,254

SOCSO
Promotion - 10 000 -

Utilities 2,000

Petrol - 1,300

Vehicle Insurance - - 5000

Land fax - - 204

Website - 50 -

Tanker Trucks 206 250 - -

TOTAL 277 250 23 604 5 204

8.0 OPERATIONAL PLAN

8.1 Component of Operating Systems

8.1.1 Business input

The raw materials used to produce sulfuric acid are sulfur, water, and oxygen. All of

these materials are combined through the contact process to produce a quality sulfuric

acid.

8.1.2 Transformation Process

External Environment Forces

Input TRANSFORMATION Output

PROCESS

Feedback Feedback

8.1.3 Output
The final product resulting from the combination of all the raw material will be the

sulfuric acid and this acid can be supply to other product that requires the uses of this

type of acid.
8.1.4 Feedback

This company will provide many ways in order to get the feedbacks from

customers around the world. The feedback will be considered in the many forms

including media mass such as facebook, websites, blogs, and others.

8.1.5 External Environment

External environment forces can be categories into suppliers, customers, and existing

competitors. The competitors that exist among our acid producer includes company

such as BASF See Sen Chemical and Malaya Acid Works which is located in this

country. Besides, our company also compete with other companies around the world

especially the nearby countries which are Thailand and Indonesia such as Padeang

Industry and PT Indonesian Acids respectively.

 8.2 Process Planning for Manufacturing

8.2.1 Symbol of Process Chat

Symbol Type of Activity Description

Activities that modify,
Operation transform, or give values to
the input.

Transport the activity occurs

when the materials are
Transportation
transported from one point to
another.
Activity that measures
standard of the process
Inspection
material, finished products,
or services.
The symbol is used when in-
process material is restrained
Delay
in a location waiting for next
activity.
The symbol is used when the
in-process materials or
Storage
finished products are stored
in the storage area.
 8.2.2 Process flow Chart

Suppliers transport sulfur to the plant.

Transform the sulfur in the form

of liquid in about 140°C.
.140140Type equation here.
The liquid sulfur is sampled before Air is drawn from the atmosphere,
being stored for the acid. dried, and composed.
production
Liquid sulfur and air is transported into the
furnace to be burned.

The sulfur combines with the oxygen to produce

sulfur dioxide.

Sulfur dioxide reacts with oxygen to produce

sulfur trioxide in the converter in about 440°C.

Sulfur trioxide reacts with the water to produce

99% concentrated sulfuric acid.
Sulfur dioxide reacts with oxygen to produce
sulfur
99% trioxide in the
concentrated converter
sulfuric acidinisabout 440°C.
diluted in the
diluter to the concentration needed by the
customer.

Acid concentrated is checked through sampling

process by the chemists.

Acid is stored in the storage Some acids are recycled back into
tankers. the absorbers.

Tankers are transported to customers

by rail or road.
8.2.3 Activity Chart

Transformation of sulfur powder to liquid. Manpower 5 min

↓
Sampling of liquid sulfur Manpower 5 min

↓
Transfer the liquid sulfur and air into the Manpower 5 min
furnace
↓
Combination of sulfur and oxygen Furnace 20 min
↓
Sulfur dioxide reacts with oxygen to produce Converter 15 min
sulfur trioxide in the converter in about 440°C.

↓
Sulfur trioxide reacts with the water to produce Absorber 20 min
99% concentrated sulfuric acid. Tower
↓
Dilution of acid Diluter 15 min
Cooling of acid Cooler 25 min
↓
Sampling of concentrated sulfuric acid Manpower 5 min
↓
Storage of acid in tankers Acid 15 min
tankers
↓
Tankers are transported to customers Manpower 15 min
8.3 Operational layout

8.3.1 layout based on the product

8.4 Production Planning

8.4.1 Sales forecast per month

Average sales forecast per month = RM 1,000,000

The sales price = RM 833 per metric ton

8.4.2 Number of output per month

= average sales forecast/ sale per unit

= 1,000,000 / 833

= 1200 metric ton

8.4.3 Number of output per day

= no of output per month/ no working days per month

=1220/ 31 days

=39 metric ton

8.4.4 Number of unit per hour

= No. of output per day / daily working hour

= 39 / 8 hours

= 5 metric ton per hours

 8.5 Material Planning

8.5.1 Material Requirement Planning

8.5.1.1 Raw material required per month (bill of material)

No Material Quantity Safety stock Total material Price per Total price
per unit (10%) requirement unit (RM) (per month)
(RM)

1 Sulfur 60 metric 6 metric ton 66 metric ton 550.00 36,300

ton

2 Vanadium 60 metric 6 metric ton 66 metric ton 110.00 7,260

Oxide ton

3 Water 80 metric 8 metric ton 88 metric ton 1,500 132,000

ton

Total Price 175,560

(RM)
 8.5.2 Identify Supplier

Material Supplier

Sulfur ACE TECH Trading,

LOB 4, Level 6, 42920 Port Klang Free

Zone.

Telephone : 016-3390836

Vanadium Intercontinental Chemical CO LT, Selangor

Darul Ehsan.

Telephone : 60-011-16343931

Water Jabatan Bekalan Air Pahang

8.6 Machine and Equipment Planning

8.6.1 List of machine and equipment

8.6.1.1 Furnace

8.6.1.2 Converter

8.6.1.3 Diluter

8.6.1.4 Cooler

8.6.1.5 Absorber Tower

8.6.1.6 Storage Tank

8.6.2 The amount of machine required

8.6.2.1 Furnace

= Planned rate of production per Day x standard Production time

Machine Productive time per Day

= 39 metric ton x 20 minutes

(8 hours x 60 minutes)

= 1.63 @ 2 machines
8.6.2.2 Converter

= Planned rate of production per Day x standard Production time

Machine Productive time per Day

= 39 metric ton x 15 minutes

(8 hour x 60 minutes)

= 1.2 @ 1 machine

8.6.2.3 Diluter

= Planned rate of production per Day x standard Production time

Machine Productive time per Day

= 39 metric ton x 15 minutes

8 hour

= 1.2 @ 1 machine

8.6.2.4 Cooler

= Planned rate of production per Day x standard Production time

Machine Productive time per Day

= 39 metric ton x 25 minutes

8 hour

= 2.03 @ 2 machines
 8.6.2.5 Absorber Tower
= Planned rate of production per Day x standard Production time
Machine Productive time per Day
= 39 metric ton x 20 minutes
8 hour
= 1.63 @ 2 machines
8.6.3 List of machine supplier
No Machine
1 Furnace
2 -Converter
-Diluter
-Cooler
3 Absorber Tower
5 Storage Tank
Suppliers
Hangzhou Yinda Induction Furnace Co., Ltd.
Xiyuan Village,Tangqi Town,Yuhang District.
Telephone: 86-0571-86350882
Fax: 86-0571-86350885
Mr. Suveer Anand
No. 25/34, Anand Chamber, East Patel Nagar
New Delhi - 110 008, Delhi, India
Mobile:+(91)-9911426755/ 9811594948
Telephone: +(91)-(11)-28764948
Email: info.ylem@gmail.com
Xinxiang Jinxin Machinery Equipment Co., Ltd.,
Henan, China (Mainland).
Zhejiang Mingchen Machinery Technology Co.,
Ltd.
 8.6.4 Machine and Equipment (rental or purchase)
No. Machine Quantit Price per unit Total price
y (RM) (RM)
1 Furnace 2 500 000 1 000 000
2 Converter 1 250 000 250 000
3 Absorber Tower 2 1 000 000 2 000 000
4 Diluter 1 17 500 17 500
5 Storage Tank 5 41 250 206 250
6 Cooler 2 45 000 90 000
TOTAL 3 721 250

No. Types Price per unit Total Price

1 Business License 2 000 2 000
2 Insurance & Road 5 000 5 000
Tax for Motor
Vehicle
Total 7 000
 8.6.5 Operational Budget
Item Fix Assets Montly expenses Other expenses
(RM) (RM)

Fixed asset - -
-Machineries 3,721,250
Working Capital
-Raw material - 175,560 -
-salaries 32,400
-utilities 163,650

Other Expenses - -
-

Pre- Operations - -
-deposite (rent)
- insurence, tax
-
Total 3,721,250 371,610
 8.7 Manpower Planning

8.7.1 List of Manpower Requirement

No. Human No. of Monthly Total Annual EPF SOCSO
Resource Persons Salary per (RM) Salary (13%) (1.75%)
person (RM) (RM) (RM)
(RM)
1 General manager 1 7,000 7000 84 000 910 122.50
2 Secretary 1 2,000 2000 24 000 260 35.00
3 Commercial 1 6,000 6000 72 000 780 105.00
manager
4 Finance manager 2 3,000 6000 72 000 780 105.00

5 Accountant 2 3,500 7000 84 000 910 122.50

6 Production and 3 6,000 18 000 72 000 780 105.00
technical head
7 Mechanic 6 1,500 9000 108 000 1170 157.50
8 Electrician 6 1,500 9000 108 000 1170 157.50
9 Chemist 5 2,000 10 000 72 000 780 105.00
10 Operation 3 1,800 5 400 43,200 234 31.50
Manager
11 Operators 18 1,500 27 000 108 000 1170 157.50
12 Assistant 18 1,200 21 600 86 400 936 126.00
Operator
13 Laborers 6 1,200 7 200 57 600 624 84.00
Sub- total 41 80 800 135 200 991 200 12 504 1 414
Benefit (25% Basic Salary) -
Total 80 800 135 200 991 200 12 504 1 414
8.7.2 List of Operation Personnel

1. Operational Manager
2. Operator

8.7.3 Schedule of task and Responsibilities

Position Task and Responsible
Operational Manager  Maintaining the production schedule
and supervising the staff.
 Involve in managing the equipment
and facilities
Operator  To ensure the process of product
will be going on always.

8.7.4 Direct labor operation Planning Table

Position No Monthly EPF SOSCO Amount
Salary(RM) Contribution (1.75%) (RM)
(13%)
(RM)
(RM)
Operation manager 3 1800 234 31.50 5 400
Operator 18 1500 195 30 27 000

Total 32 400
8.8 Overhead requirement

8.8.1 Operations Overhead (indirect labour/ indirect, Material/ insurance/

maintenance and utilities)

No. Types of Overhead Monthly Cost (RM)

1 Electricity 28 700
2 Water 132 000
3 Telephone 2 200
4 Internet 750
TOTAL 163,650

8.8.2 Total Operational Cost

Total operation cost = Direct Material cost (total raw materials ) +

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

operations overhead )

= 175,560 + 32,400 + 163,650

= RM371,610
8.8.3 Cost per unit

Cost per unit = total operational cost (RM)

Total number of Output (Output per month)

= 371,670
1200

= RM 310

8.8.4 Productivity index (PI) = Total of Output (sales foecast per month)
Total of input (Total Operational Cost)
= 1 000 000
371670

= 2.7
8.9 Location plan
8.10 Business and operation hours

Business Hour = 8 hours per day (8.00 a.m until 6.00 p.m)

Operation Hour = 24 hours

8.11 License, Permits and regulations required

8.11.1 Manufacturing license

8.11.2 Building license

8.12.3 Environment license