Opman Sample 1st Deliver Able

8/8/2019 Opman Sample 1st Deliver Able

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cial1ST DELIVERABLE

POM102

ARANGUREN, Theresa Yna C.

LACSAMANA, Mark Lester C.

PRADO, Paula Nikole Q.

RAMIREZ, Vianca Marie R.

SARREAL, Joseph Gideon

Section D

Sir Angelo Tanchoco

Submitted on January 15, 2010


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INDUSTRY OVERVIEW

Industry Growth and Trends:

The miscellaneous fabricated textile industry deals with the manufacturing and production of textile

goods that are specially made and designed for certain products and services. Such products of the

miscellaneous fabricated industry include cellular phone sleeves, cosmetic bags and laptops/notebooks

bags and sleeves. The finished goods of the industry are dependent on the production of the industry it

caters, meaning, for example, the laptop sleeve production is almost directly dependent on the laptop

industry. In terms of consumer expenditure, the larger scope industry (textile industry) which the

miscellaneous fabricated industry falls under, has been experiencing growth for the past 6 years and in

2008, recorded a 4,097,100,000 consumer expenditure in textiles. The table below shows the growth and

figures of the textile industry.

Historic Ps mn Value at Current Prices

2003 2004 2005 2006 2007 2008

Philippines

Consumer expenditure on

household textiles

3,190.5 3,388.5 3,547.1 3,664.3 3,780.5 4,097.1

With this increase, the miscellaneous fabricated manufacturing industry has ridden with this trend

and has also increased sales. As said earlier, the industry banks on opportunities given and presented by

other industries or product sales and growth that it is dependent on. These include the mobile phone

industry, portable computers or laptops, I-pods and MP3s etc.. A trend that is deemed advantageous for

the miscellaneous fabricated industry are sales packages that are common among retailers and

distributors, among which are sleeves and bags as a bonus in the purchasing of products such as

cellphones or laptops.

Growth Opportunities:

Specifically, companies may be considered to be relying on laptop and notebook sales for its

growth and it its increase in sales and revenues. Looking into this, it can be seen that the laptop or


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notebook industry is seeing a large, if not exponential, growth. Innovations of laptops and notebooks are

noticeably clear in which new models of laptops emerge almost on a quarterly basis. The relatively large

number of laptops brands and producers such as Apple, Sony, ASUS, Toshiba and many more is almost

an assurance of growth. The table below shows market growth in portable computers or laptops both

worldwide and in Asia.

Market Sizes Historic

2003 2004 2005 2006 2007 2008

Asia Pacific

Portable computers -

Retail Volume - '000 units

9,451.9 11,468.8 14,581.5 16,968.0 20,395.6 24,761.0

Portable computers -

Retail Value RSP - US$

mn

11,162.6 13,278.0 15,663.5 17,035.8 19,594.1 24,456.1

Market Sizes Historic

2003 2004 2005 2006 2007 2008World

Portable computers - Retail Volume -

'000 units

36,370

.3

45,697

.8

57,141

.2

69,235

.6

84,228

.3

103,886

.8Portable computers - Retail Value RSP -

US$ mn

40,354

.6

52,058

.0

59,853

.6

69,004

.0

82,482

.6

101,880

.6

This perceived growth in market size and even sales of laptops may, in a way, also be seen as

reflective of the growth in sales for laptop sleeves as well. Protecting ones laptop is seen as important to

consumers, thus, buying of a sleeve is necessary. In may be anticipated that a large portion of laptop sold

or owned may have a corresponding one laptop sleeve sold and owned as well.

PRODUCT CONCEPT AND DESIGN

LAProtect laptop sleeves are apparels that act as a common alternative to laptop bags and

serve mainly as a container and protective cover for laptops. Such a concept is not new as laptop


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sleeves have been in the Philippine market since the early 2004, thus, the LAProtect laptop

sleeves are considered a variety of the product. LAProtect laptop sleeves will be mainly be made

of rubber for the body, neoprene for its skin and inner lining, a plastic rod for the handle, and

adhesives, snap fasteners and velcros for the seals. They will be designed into a rectangular

shape with rectangular flaps in all sides wherein the bottom one will have a plastic rod attached

for the handle. The left and right flaps will overlap in the top area and be secured by velcros. The

bottom flap will pass through a slot in the upper flap and the latter will close the container by

fastening the velcro attached found at the end of it to the body. Snap fasteners are also attached

for full support of the laptops weight. The body is 1 cm thick to ensure protection.

LAProtect laptop sleeves are available in solid colors: pink, apple green, cyan and black

so that they are simple enough for sophisticated people and are open for personalizing and

customizing for the artsy people. LAProtect laptop sleeves are 18 inches- measured diagonally-

in order to accommodate any typical laptop ranging from sizes 13-17 inches. One sleeve can

hold one laptop at a time. LAProtect laptop sleeves are designed in such a way that the customer

has the option of carrying the whole body or adjusting the lower flap to act as a handle of a

makeshift bag, which is also designed to look like the sleeves accessory when not in use. With

the nature of its material, the sleeves are expected to last through years.

The target customers are students and young professionals. The customers expect the

product to be easily opened and closed, is durable, and is capable of properly securing laptops. It

should be of good quality, must pass the standards of safe usage (since rubber has to be

processed and be applied with many chemicals first) and will not in any way damage the laptop

being contained by it. Unlike the common laptop sleeves which are mainly made of neoprene,

LAProtect laptop sleeves will be made of rubber, which is a more environmental friendly and

cheaper option. Rubber dusts from vehicle tires are recycled to become the material for the

sleeves. With the cheaper alternative materials at hand, stakeholders can expect to reduce cost,

increase revenue, and acquire more profit.


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Bill of Materials

Material Unit Consumption Unit of Cost Raw Matls. Cost per 100 Units

Rubber 800 grms/ bag P25/ kilo P 2,000.00

Neoprene 2 - 25x25 cover P11/25x25 P 2,200.00

Adhesive 0.05 lbs/bag P570 per pound P 2,850.00

Velcro 25 cm / bag P 45 / meter P 1,125.00

Total Cost per 100 Units P 8,175.00

Or P 81.75/bag

Labor Cost to Produce 100 bags = P 10,000.00 Or P 100.00/bag

Machine Depreciation = P 10,000.00 Or P 100.00/bag

Miscellaneous Costs 50.00/bag

Total Production/Distribution Cost P 316.75 or

P 320.00/bag

Pricing

The value-based method will be used in pricing the product. Since the cost incurred from

producing the product is considerably smaller than the other companies using neoprene as their

main material, LAProtect can afford to price their laptop sleeves lower than the others in order to

attract more customers. Many people produce laptop sleeves in the country, but most of them are

only small-scale and home-based businesses. Two of the known local mass producers of sleeves

are Snupped and Junkies (from the Aranaz bags).

With an estimate of P 320.00 unit cost incurred for every production of sleeve, LAProtect

can have a mark-up of 200% but still be considerably cheaper than competition.

The following are the prices of the sleeves for comparison:

Snupped P1,400

Junkie P1,700

LAProtect P960


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PROCESS DESIGN

Process Flowchart

Besides the actual production of the sleeves, the LAProtect will also be responsible for

the preparation of rubber, its primary material. The process is therefore divided into two

operations, the rubber recycling process and the laptop sleeve making process, as explained in

detail below:

a. Rubber Recycling Process

Rubber Powder Production

Simple process flowchart for rubber powder production:


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The rubber powder can act as a base for producing more defined rubber materials like

rubber sheets (RME Rubber Recycling), which is used in making laptop sleeves. In producing

the rubber powder, the rubber scraps or rubber wastes supplied will first be grounded into rubber

granules. The rubber granules will then be cooled with liquid nitrogen at -196 degrees Celsius.After which, the cooled granules will then be pulverized into fine powder using a pin mill.

Finally, the produced rubber powder is sieved into different sizes. (3R Smart Recycling)

Therefore, the rubber powder created from recycling rubber scraps will undergo rubber

processing to further develop it into a more defined material rubber sheet for producing laptop

sleeves.

In processing the rubber powder, the most critical process is mixing. Mixing is usually

done in series of batches in a high-quality mixer (Johnson). Depending on the batch capacity ofthe mixing mill, one should feed the materials in the mixer with the right quantities and the right

temperature (Johnson). Materials should be mixed at 35 degrees Celsius or even above

(Johnson). The other ingredients needed in mixing are oils, carbon blacks for weathering,

reinforcements and dynamic properties, and mineral fillers to obtain electrical properties, heat,

flame, etc., that are usually also acquired through the suppliers of rubber wastes or scraps

(Johnson). The dispersion kneader machine is for additional mixing of the rubber through mixing

in closer and more pressurized space with controlled temperature to produce better and more

stable quality of rubber (Dalian General Rubber Machinery Corp). After the whole mixing

process, the mixed rubber will go through the rubber injection machine, for curing operations

and for molding shapes, thick wall and inlays. The molded rubber will then go through a

hydraulic press to produce the desired rubber sheets needed in the production of sleeves.


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Laptop Sleeve Making Process

The rubber will go through the adhesive machine where it will be attached in between

two neoprene fabrics. The rubber sheet will then be inspected. After it has passed the inspection,

the sheet will go through a cutting machine where it will be cut into a pattern or layout that is

already pre-designed and programmed into the machine. The already cut rubber sheet will then

go through the snap fastener machine wherein heavy duty fasteners are attached. The Velcro will

be attached after, using the Velcro applicator machine. It will again undergo another inspection

to see if all locking materials are securely attached. After which, the handles will be added by the

personnel. Consequently, the final product will be ready for shipping.

Machines and Equipment

Equipment for Rubber Powder Production


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Rubber Processing:

Hydraulic Press

Rubber Mixing Mill


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Injection Molding Machine

Dispersion Kneader


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Adhesive Machine

Cutting Machine

Automatic Snap Fastening Machine


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Required Competencies and Skills

Like any other company, the employees are required to have specific skills and competencies

before they are accepted for a certain job. The production of our product would need employees for

operating the machinery, for doing the manual application of handles, and for doing the inspection.

Training would most definitely be a part of their preparation for the employment, but it would be most

helpful if they already had a working experience in handling such machines before, like having the

literacy in computer controls for operating and reconfiguring new types of machinery, especially for the

aspiring managers. Workers could preferably have past experiences in manual labor and making

inventories. They should also be able to do repetitive work, making the 150 th laptop sleeve as good as the

first one they did for the day. Knowing how to keep the same pace and accuracy throughout their shift is

also quite important so that everything in the production process would go smoothly, and would also

lessen the probability of having rejects.

Demand Forecasting

In three years time, it is assumed to take 40% market share for all laptop sleeves, growing from

5% on its first year and 20% on its second year of product introduction.

Sources:

Adhesive Machine. 11 Jan 2010.

.

Automatic Snap Fastening Machine. Focus Technology. 11 Jan 2010.

.

Company Profile. Aero-Seal Trading and Industrial Supply. 11 Jan 2010.

.

Custom Automation and Work Aids. Galkin Automated Products. 11 Jan 2010.

.
http://www.made-in-china.com/image/2f0j00kMAQmRnwGHbvM/Self-Adhesive-Labeling-Machine-Labler-BGJ-2000-.jpghttp://www.made-in-china.com/image/2f0j00kMAQmRnwGHbvM/Self-Adhesive-Labeling-Machine-Labler-BGJ-2000-.jpghttp://sinojiuzhou.en.made-in-china.com/product/gqKJUReCHnDo/China-Automatic-Snap-Fastening-Machine-JZ-989N-.htmlhttp://sinojiuzhou.en.made-in-china.com/product/gqKJUReCHnDo/China-Automatic-Snap-Fastening-Machine-JZ-989N-.htmlhttp://bizshowcase.eyp.ph/wp-content/aero_seal/company-profile.pdfhttp://www.galkin.com/ProductDetail.aspx?pcid=2&pscid=13&pid=13http://www.made-in-china.com/image/2f0j00kMAQmRnwGHbvM/Self-Adhesive-Labeling-Machine-Labler-BGJ-2000-.jpghttp://www.made-in-china.com/image/2f0j00kMAQmRnwGHbvM/Self-Adhesive-Labeling-Machine-Labler-BGJ-2000-.jpghttp://sinojiuzhou.en.made-in-china.com/product/gqKJUReCHnDo/China-Automatic-Snap-Fastening-Machine-JZ-989N-.htmlhttp://sinojiuzhou.en.made-in-china.com/product/gqKJUReCHnDo/China-Automatic-Snap-Fastening-Machine-JZ-989N-.htmlhttp://bizshowcase.eyp.ph/wp-content/aero_seal/company-profile.pdfhttp://www.galkin.com/ProductDetail.aspx?pcid=2&pscid=13&pid=13


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Dispersion Kneader. 11 Jan 2010.

House of Machinery and Electricals. Atlas Machine Tools. 11 Jan 2010.

.

Hydraulic Press. 11 Jan 2010. .

"JUNKIE Laptop Sleeves." 30 November 2006. Shop Crazy. 9 January 2010

.

Injection Molding Machine. 11 Jan 2010. .

Laptop Bag. Instructables. 11 Jan 2010.


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Rubber Dispersion Kneader. Dalian General Rubber Machinery. 10 Feb 2010.

.

Johnson, Peter S. Rubber Processing an Introduction. 10 Feb 2010.

.
http://www.suash.com/Rubber%20(plastic)%20dispersion%20mixer.htmlhttp://www.suash.com/Rubber%20(plastic)%20dispersion%20mixer.html

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