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Proposal 2021
Proposal 2021
BIOPLASTIC
PROPOSAL
+60139039245
asyrafamn@gmail.com
+601132690788
mfaizamin@gmail.com
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Executive summary
Plastic waste contributes to ecological devastation and issues in human health. In 2017,
it is estimated that there are more than 8.3 billion metric tons (Mt) of plastics that have
been produced since the 1950s.In 2015, only nine percent of plastics have been
recycled, 12 percent incinerated, and 79 percent accumulated in landfills or in the
oceans. If this trend continues, it is expected that roughly 12,000 Mt of plastic waste
will be in landfills or the natural environment by 2050. The global plastic industry today
is considering alternatives, especially the use of more sustainable materials like
bioplastic which is a plant-based alternative made from renewable materials like starch
from corn, potato, soy protein, cellulose, and lactic acid. The use of plants makes
bioplastic more Earth-friendly products.
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Oil palm trunk process structure
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Figure above shows that two option for raw material processing. The first option is where all process
is doing on own. This will cost higher initially because more machine needs to setup compare to buy
direct from supplier. But on raw material cost will be lower as current price is rm500 per tons for
wood chips.
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Wood chip that transported from plantation
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Overall process of plastic resin
The manufacturing of resin activities shall focus on producing bio-resins that 100% bio degradable
and bio compostable. Separate plant operation is introduced due to environmental control on end
product basis. This is important for certificate especially on food and beverages related sector.
For resin, in targeting our production-output of 100Mt a month, the total revenue earning is
estimated at RM3, 400,000 per month or RM20, 800,000 per year.
Machine cost
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Injection Molding Cutlery, meal set, household 12.52
Blown Molding Grocery bag, biohazard bag, 18.00
garbage bag, agriculture bag
Straw Drinking straw, Boba straw 15.65
Thermoforming Drinking cup, cup lid, meal box 17.00
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END PRODUCT
1. INJECTION MOULDING
Injection moulding is a method to obtain moulded products by injecting plastic materials molten by
heat into a mould, and then cooling and solidifying them.
The method is suitable for the mass production of products with complicated shapes and takes a
large part in the area of plastic processing. Injection using two important element pressure and heat,
it depends on based formulation used. Usually one batch of injection is about 8 second including
cooldown temperature.
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Injection molding machine
Machine cost
Revenue model
Biodegradable cutlery
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• The biodegradable cutlery producing machine can produce 3, 949, 000 pieces working at a 8 hours
per day and 24 day per month of the production capacity
• Current market for biodegradable cutlery is as high as RM0.09 per piece
• Taking into account at a more conservative estimate of RM0.07 per biodegradable cutlery, the
company revenue per month for cutlery is RM 276,430 working 8 hours a day for 6 days a
week.
• The biodegradable food container producing machine can produce 394,971 pieces working
at a 8 hours per day and 24 day per month of the production capacity
• Current market for biodegradable food container is as high as RM0.60 per piece
• Taking into account at a more conservative estimate of RM0.50 per biodegradable food
container, the company revenue per month for meal box is RM 197,485.50 working 8 hours
a day for 6 days a week.
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Biodegradable mealbox
Biodegradable mealbox
• The biodegradable Drinking cups producing machine can produce 592,457 pieces working at an 8
hours per day and 24 day per month of the production capacity
• Current market for biodegradable drinking cups is as high as RM0.45 per piece
• Taking into account at a more conservative estimate of RM0.25 per biodegradable cup, the
company revenue per month for cup is RM 148,114.25 working 8 hours a day for 6 days a week.
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Biodegradable Cups
2. Blown Molding
One of the most common methods of film manufacture is Blown Film (also referred to as the Tubular
Film) Extrusion. The process involves extrusion of a plastic through a circular die, followed by
"bubble-like" expansion.
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Blown film line
Machine cost
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Revenue model
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company revenue per month for garbage bag is RM 2,027,520 working 8 hours a day for 6 days a
week.
3. Drinking Straw
A drinking straw is a utensil that is intended to carry the contents of a beverage to one's mouth.
Straws are commonly made from plastics, but environmental concerns and new regulation has led to
rise in reusable and biodegradable straws. These straws are often made of silicone, cardboard, or
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metal. A straw is used by placing one end in one's mouth and the other in a beverage. Straw
manufacturing requires several steps. First, the plastic resin and other components are mixed
together; the mixture is then extruded in a tube shape; the straw may undergo subsequent
specialized operations; and finally, the straws are packaged for shipment.
Machine cost
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Revenue model
4. Thermoforming
Thermoforming is a plastic molding technique that results in a variety of highly usable products.
During this manufacturing process, thin plastic sheets are heated in order to make them easy to
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manipulate. Once a sheet reaches a pliable temperature, it is formed over a male or female mold.
After being cooled to a finished shape, the end product is trimmed in order to increase its usability.
Thermoforming machine
Machine cost
Revenue model
Drinking Cup
A. Hard Cost
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Table 1. Hard cost expenditure with list of equipments and factory setup.
B. Soft cost
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2. IP- Trademark search 1 Unit 200 0.0002
3. IP- Trademark Company 1 Unit 950 0.0009
4.Green batch SIRIM 1 Unit 25,000 0.025
5.ISO9001 1 Unit 7,000 0.007
6.ISO14001 1 Unit 10,000 0.010
7. Halal Cert 1 Unit 7,000 0.007
Total Soft cost (TSC) 0.1232
Direct Fixed Cost (DFC) or factory overheads include salary of staff in the production line and all
expenses related.
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Direct Fixed cost Qty Unit cost Monthly
Salary- Plant manager 1 6,000 6,000
Salary- Qa/Qc 1 3,500 3,500
Salary- Technical Executive 1 2,800 2,800
Salary- Technician 1 2,100 2,100
Salary- Rnd Engineer 1 3,000 3,000
Salary- Supervisor 1 1,800 1,800
Salary- Storekeeper 1 1,400 1,400
Salary- Operator 10 1,300 13,000
Total 33,600
Indirect Fixed Cost (IFC) includes 1) Salary of the Management and Administrative staff.
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Cashflow
1 2 3 4 5 6 7 8 9 10 11 12 TOTAL
Opening cash balance 0 -1507590 -896980 -286370 324240 934850 1545460 2156070 2766680 3377290 3987900 4598510 17000060
CASH INFLOW:
Sales 1186560 1186560 1186560 1186560 1186560 1186560 1186560 1186560 1186560 1186560 1186560 1186560 14238720
TOTAL CASH INFLOW 1186560 -321030 289580 900190 1510800 2121410 2732020 3342630 3953240 4563850 5174460 5785070 31238780
CASH OUTFLOW:
Capex 2118200 0 0 0 0 0 0 0 0 0 0 0 2118200
Direct Variable cost 462250 462250 462250 462250 462250 462250 462250 462250 462250 462250 462250 462250 5547000
Direct fixed cost 33600 33600 33600 33600 33600 33600 33600 33600 33600 33600 33600 33600 403200
Indirect fixed cost 80100 80100 80100 80100 80100 80100 80100 80100 80100 80100 80100 80100 961200
TOTAL OUTFLOW 2694150 575950 575950 575950 575950 575950 575950 575950 575950 575950 575950 575950 9029600
Ending cash balance -1507590 -896980 -286370 324240 934850 1545460 2156070 2766680 3377290 3987900 4598510 5209120 22209180
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