Product Cost Estimation

INTRODUCTION
Transformers is a series of American science fiction action films based on Transformers
franchise which began in the 1980s. At present, there film series has been released
-Transformers (2007), Revenge of the Fallen (2009), Dark of the Moon (2011), Age of
Extinction (2014) and The Last Knight (2017). A spin-off film, Bumblebee, directed by Travis
Knight and produced by Bay, was released on December 21, 2018. , the film series has a
promotional expanded series that is set both before and after the events of the films. This
includes comic books, video games, and novels. While the novels are partially based on the
films themselves, and the video games aren't in the same continuity as the films, the comic
books and graphic novels are in the same continuity and fill in several parts of the stories
from the films.
In the future, there a new film been develop to released in 2020. By March 2019, its
confirmed that the studio was still developing sequels to both Bumblebee as well as The
Last Knight. Transformer movie are popular all around the worlds. Every time a new film
series released, the response is strongly encouraged. This in because, transformers had its
own fans. So, if the product was released for free, it can be release as limited edition
speaker to the 30000 early viewers. It will help promote the film. Alternatively, if the product
is to be sold, it can be use as merchandise. Fans of movie will buy them right to be kept as a
collection. Moreover, the release of this product is limited. This product surely will help in
marketing to promote the product.
1
CHAPTER 1
PRODUCT DESIGN SPECIFICATION
1.0 Title
Multimedia speakers facelift from an existing product called ‘BINOCULAR’.
2.0 History & Background Information
We currently produce portable multimedia speaker for our latest package called
‘BINOCULAR’. Now it is time to produce a second generation of the speaker system.
Discussions with our present customer have decided that the design concept should be
updated to acquire new demands. Below is our present speaker called BINOCULAR.
Figure 1 : BINOCULAR Multimedia Speaker
2
There will be no changes in the original design but instead a new part will be replaced to the
assembly of the speaker which is the existing Decorative Cover. This Cover will enhance the
original design to innovate the customer to buy the
3.0 Scope of Specification
3.1 The electrical unit of the system is to be maintained because it does not affect the
actual market instability.
3.2 The Back Panel and The Front Panel of the speaker also to be maintained to control
the impact of final costing of the new generation.
3.3 A new part will be added named ‘Cover’ to replace the old cover and to innovate the
existing design of product.
3.4 The new look of the Cover must be up to date with good profile that should attracts
the customer.
3.5 The overall thickness of the new part is 2.0mm.
3.6 The new design of the Cover should have its own trade symbol to capture the
market.
3.7 The new part cost of the new design should be within RM0.50 to RM2.50 only unless
justified with acceptable reason.
3.8 Material selected for the Cover part is still ABS.
3.9 The maximum size of the assembled product must not exceed 150mm height x 250
mm width x 130mm depth. If exceed, needed approval.
3.10 The maximum size of the assembled product must not exceed RM50/-.
3.11 Power supply Adapter added together into total cost of the total product.
4.0 Consultation
4.1 Production department agreed to maintain the Front Panel profile because of the
existing jigs from the old model.
4.2 Production department also requested that the new Cover part design should use the
same way of the assembly onto the Front Panel.
4.3 Tooling department requested that the new Cover should comply with minimum draft
angle of 3 degrees.
3
4.4 Tooling department also suggested that the Cover design does not need any
slider(undercut design) for the mould fabrication.
4
5.0 Major Design Parameter.
5.1.1 Aesthetics
 The Cover new concept is the most important criteria to fulfil the customer’s
requirement.
 It should have its own trade symbol to capture the market.
5.1.2 Costs.
 Since the new design is more of a facelift concept, then costing is the major
criteria here.
 All other parts should cost the same except the new Cover.
5.1.3 Transportation
 Packaging of the new unit is the same from the existing model.
 New design part must fulfil this constraint.
5.1.4 Performance.
 The new Cover design should not degrade the performance of the speaker in
terms of sound quality.
5.2 Minor Design Parameter.
5.2.1 Manufacture.
 Consider the draft angle requested by the tooling department.
 Maintain the Front Panel for the existing jigs.
5.2.2 Quality.
 Make sure the new Cover does not lag of any quality standards such as
material flow or drag marks.
5.2.3 Safety.
 Make sure sharp edges existed in new design.
5
6.0 Design New Concepts Sketches
The design depicts the character of ‘Transformer’, the character in science fiction action
films. The idea is to accommodate Binocular Speaker into this character. This product can
be sold as a gift slot during the TV series or even at any promotion of Transformer. For
example, its can be released during movie launcher. The product also can attract be sold as
limited edition item in the internet where customer can buy it online. This product surely will
the transformers fan. My front view cover sketches can be refer at Figure 1.
Figure 1
7.0 Part List
Parts List
ITEM QTY PART NUMBER DESCRIPTION MATERIAL STATUS
1 2 450-0001-00 LOUDSPEAKER - STANDARD
2 1 450-0002-00 PRINTED CIRCUIT BOARD - COMMON
3 1 300-0001-00 FRONT PANEL ABS COMMON
4 1 300-0002-00 BACK PANEL ABS COMMON
5 1 300-0003-00 STAND ABS COMMON
6 1 300-0004-00 POWER BUTTON ABS COMMON
7 1 300-0005-00 VOLUME CONTROL BUTTON ABS COMMON
8 6 230-0001-06 6MM BINDING HEAD SCREW MILD STEEL STANDARD
9 4 230-0002-10 10MM PN HEAS SCREW MILD STEEL STANDARD
10 1 300-0007-00 COVER ABS UNIQUE
8.0 Appendixes.
6
 Facelift – new look that maintain the internal assembly of the product.
 Drag Marks – scratches due to the pulling of the mould during production
process.
 Jigs – a fixture that holds the part during assembly process.
 Draft angle – a give way of angle for easy release of a plastic product from
the mould. Also, to eliminate drag mark.
 Aesthetics – a shape of a product that can attracts customer.
7
CHAPTER 2
2.0 PRODUCT COST ESTIMATION
2.1 MATERIAL COST
The selected material for the plastic parts is ABS.
The price for ABS material in the market is EURO 0.52/kg; acquired from the Plasticker
website.
The conversion of EURO to Malaysian Ringgit:
1 EURO = RM 4.0629
Therefore, 0.52 EURO = RM 2.39
Hence the price for the ABS material is RM 2.39/kg
2.2 WAGE RANGE OF WORKERS IN MALAYSIA(MANUFACTURING)
The source from https://www.indeed.com.my , the average salary for Production

Operator is RM 1291.00.
2.3 THE RATE OF MACHINE TONNAGE
Referring to the selected website http://www.injectionmoldchina.net/cost-

analysis.html.The selected company from the website is ACOMOLD (Mould &
Moulding Solution) and the rate of the machine tonnage and the cost selected are as
below :
80 Tonne =Yuan 45/hour= RM 27.24

180 Tonne =Yuan 140/hour=RM 84.74
Note that 1 Yuan = 0.61 Malaysian Ringgit
8
9
2.4 MOULDING PART COST ESTIMATION
2.4.1 FRONT PANEL
Table 1 : Front Panel moulding cost estimation.

DESCRIPTION PART NAME FRONT PANEL

PART NO. 300-0001-00
MATERIAL TYPE ABS
MATERIAL COLOUR SMOOTH ASH
PRICE/KG (RM) 2.39
RAW NO. OF CAVITY 1
MATERIAL PART WEIGHT (GM) 50.00
RUNNER WEIGHT (GM) 5.00
SHOT WEIGHT (GM) 55.00
MATERIAL YIELD RATE (%) 10.00
MATERIAL WASTAGE (%) 20.00
MATERIAL COST (RM/PC) 0.1709
MACHINE TONNAGE 150
MACHINE RATE (RM/HR) 66.58
MOULDING MACHINE INEFFICIENCY (%) 5.00
CYCLE TIME (SECS) 50.00
PRODUCTION OUTPUT (PCS/HR) 72
MOULDING COST (RM/PC) 0.9710
SUB-TOTAL COST (RM/PC) 1.1418

SECONDARY TAMPO PRINT (RM/PC) 0.0000
PROCESS Spraying Gray Silver (RM/PC) 0.0000
(A) HOT STAMPING (RM/PC) 0.0000


OTHERS PACKAGING (RM/PC) 0.0000
(B) DELIVERY to xxxx (RM/PC) 0.0000

TOTAL COST (RM/PC) : 1.1418

Note:
The part weight of Front Panel is 50.00 grams calculated from the Inventor data.
The number of cavities is 1
The tonnage machine is 150 tonnes with a RM 66.58/hr. rate.
The total moulding cost for Front Panel is RM 1.1418
10
2.4.2 BACK PANEL
Table 2: Back Panel moulding cost estimation.

DESCRIPTION PART NAME BACK PANEL

PART NO. 300-0002-00
MATERIAL TYPE ABS
MATERIAL COLOUR SMOOTH ASH
PRICE/KG (RM) 2.39
RAW NO. OF CAVITY 1
MACHINE TONNAGE 150





Note:
The part weight of Back Panel is 149 grams calculated from the Inventor data.
The tonnage machine is 150 tonnes with the RM 66.58/hr . rate
The total moulding cost for Back Panel is RM 1.4802
11
2.4.3 VOLUME CONTROL BUTTON.
Table 3: Volume Control Button moulding cost Estimation.

DESCRIPTION PART NAME VOLUME CONTROL
BUTTON
PART NO. 300-0005-00
MATERIAL TYPE ABS
MATERIAL COLOUR BLACK
PRICE/KG (RM) 2.39
RAW NO. OF CAVITY 12
MACHINE TONNAGE 100





Note:
The part weight of Volume Control Button is 1.00 gram calculated from the Inventor
data.
The tonnage machine is 100 tonnes with the RM 36.32.58/hr . rate
The total moulding cost for Volume Control Button is RM 0.0340
12
2.4.4 POWER BUTTON
Table 4: Power Button moulding cost estimation.

DESCRIPTION PART NAME POWER BUTTON

PART NO. 300-0004-00
MATERIAL TYPE ABS
PRICE/KG (RM) 2.39
RAW NO. OF CAVITY 12
MACHINE TONNAGE 100





Note:
The part weight of Power Button is 2.00 gram calculated from the Inventor data.
The tonnage machine is 100 tonnes with the RM 36.32/hr. rate
13
2.4.5 STAND
Table 5: Stand moulding cost estimation.

DESCRIPTION PART NAME STAND

PART NO. 300-0003-00
MATERIAL TYPE ABS
PRICE/KG (RM) 2.39
RAW NO. OF CAVITY 1
MACHINE TONNAGE 150





Note:
The part weight of Stand is 86.00 gram calculated from the Inventor data.
14
2.4.6 COVER
Table 6: Cover moulding cost estimation.

DESCRIPTION PART NAME COVER

PART NO. 300-0007-00
MATERIAL TYPE ABS
MATERIAL COLOUR RED
PRICE/KG (RM) 2.39
RAW NO. OF CAVITY 1
MACHINE TONNAGE 150





Note:
The part weight of Cover is 41.99 grams calculated from the Inventor data.
15
2.5 ESTIMATION TOTAL COST FOR THE COMMON PARTS.
Table 7: Common Parts cost estimation.
ITEM PART NAME PRICE/PIECE QUANTITY PRICE

(RM) `(RM)
1 PCB ASSEMBLY 3.00 1 3.00
2 LOUDSPEAKER 2.00 2 4.00
3 ST. BINDING HEAD ø3MMX8MM 0.02 6 0.12
4 ST. PAN HEAD ø3MMX10MM 0.02 4 0.08
5 POWER SUPPLY ADAPTER 12.00 1 12.00
TOTAL 19.20
2.6 ESTIMATION COST FOR THE COMPLETE ASSEMBLED PARTS.

Table 8: Complete Assembled Parts cost estimation.
ITEM PART NAME QUANTITY PRICE

(RM)
1 TOTAL COST FOR COMMON PARTS 1 SET 19.2000
2 FRONT PANEL 1 1.1418
3 BACK PANEL 1 1.4802
4 VOLUME CONTROL BUTTON 1 0.0340
5 POWER BUTTON 1 0.0372
6 STAND 1 1.2649
7 COVER 1 1.1145
TOTAL 24.2726
2.7 ESTIMATION FOR FACTORY COST
Estimation considered here will be the different of profit margin of the product. Three
categories which are the lowest, medium and the highest profit margin are set to identify the
best possible combination of the product output together with the number of operators
involved and duration to complete the given quotes.
The output of the product is maintained 30,000 units.
2.7.1 LOWEST PROFIT MARGIN
Targeted quotes are 30,000 units.
5 operators under one-line production = 50 units per day.
Operator`s wages are RM 1291.00
30000/50 = 600 days
Average months to complete = 600/31 = 19.35 = 20 months
Labour costs = 20 x 5 x 1291 = RM 12,9100.00
Factory Price for 5% profit margin:
16
Table 9: Factory price for 5% profit margin
BINOCULAR SPEAKER
DESCRIPTION
ESTIMATED FACTORY PRICE

CALCULATED ITEMS VALUE
ASSEMBLED PART/SINGLE PART COST(RM) 24.2726
PRODUCTION OUTPUT(UNIT) 30000.00
PRIME DIRECT MATERIAL COST(RM) 728952
COST MATERIAL SCRAP(%) 3.00
DIRECT MATERIAL SCRAP(RM) 21845.34
DIRECT LABOUR COST(RM) 129100.00
LABOUR SCRAP(%) 4.00
DIRECT LABOUR SCRAP(RM) 5164.00
PRIME COST(RM) 884287.34
VARIABLE OVERHEADS(%) 25.00
MANUFACTURING VARIABLE OVERHEADS COST(RM) 32275.00
COST MANUFACTURING COST(RM) 916562.34
PACKAGING,TOOLING & FRIEGHT(%) 10.00
PACKAGING,TOOLING & FRIEGHT COST(RM) 91735.96
FIXED VARIABLE COST(RM) 1008218.57
OVERHEADS FIXED OVERHEAD(%) 30.00
FIXED OVERHEAD COST(RM) 302465.57
TOTAL COST(RM) 1310684.15
ESTIMATED PROFIT MARGIN(%) 5.00
FACTORY PROFIT MARGIN COST(RM) 65534.21
PRICE FACTORY PRICE PER ITEM 45.8139
For 30,000 units, with a profit margin of 5% out of the total production cost, the factory price
per item for the product is RM 45.8139 and the profit is RM 65534.21
2.7.2 MEDIUM PROFIT MARGIN

10 operators under two-line production = 100 units per day.
30000/100 = 300 days
Labour costs = 10 x 10 x 1291 = RM 12,9100.00
17
Table 10: Factory Price for 10% profit margin
BINOCULAR SPEAKER
DESCRIPTION

per item for the product is RM 48.0584 and the profit is RM 131068.41
2.7.3 HIGHEST PROFIT MARGIN

20 operators under four-line production = 200 units per day.
30000/200 = 150 days
Labour costs = 20 x 5 x 1291 = RM 129100.00
18
Table 11 : Factory price for 14% profit margin
BINOCULAR SPEAKER
DESCRIPTION

per item for the product is 49.8060 and the profit is RM 183495.78
19
2.8 SUMMARY
Table 12: Summary of the product cost estimation.
QUOTAS NO. OF FACTORY PROFIT PROFIT(RM) DURATION

OPERATORS PRICE(RM) MARGIN(%) IN MONTHS
30,000 5 45.8139 5 65534.21 20
30,000 10 48.0584 10 131068.41 10
30,000 20 49.8060 14 183495.78 5
Referring to table 12, the quotas for the product is fixed to 30,000 units. First, when 5
operators in one-line production used with the 5% of profit margin, the factory price per item
became RM 45.8139. When the number of operators change to 10 operators in two-line
production with profit margin 10%, the factory price per item became RM48.0584. Lastly, for
14% profit margin, 20 operators used in four-lines production used, the factory price per item
is RM 49.8060
Bar Chart 1
51
50 49.81
49
Factory Price(RM)
48.06
48
47
46 45.81
45
44
43
5 10 14
Profit Margin(%)
Bar chart 1: Factory Price (RM) against Profit Margin(%)

Based on bar chart 1, when 5% of profit margin used, the factory price gained were RM
45.8139. Then, when the profit margin is 10% the factory price became RM 48.0584. Lastly,
the factory price was RM 49.8060 when 15% profit margin used. We can see a bigger
different of profit when different profit margin used and based on table 11, the price for unit
per item for all profit margin is still under RM50 per requested.
20
Bar Chart 2
25
20
DURATION IN MONTHS
15
10 20
5 10
5
0
5 10 20
NUMBER OF OPERATORS
Bar Chart 2: Number of operator against Duration in Month

Based on bar chart 2. There was big change to the duration of months when the amount of
profit margin change. When the number of operators increase, the duration of month can be
decreased. To simplify we can save time and at the same time can gains more profit. We
can observe that the total profit margin is recorded at its highest when using 4 lines of
production with 20 operators, in exchange of the small increase in factory price per unit but
can reduce more production times.
To conclude, it is recommended that we chose the highest profit margin 14% possible with a
fixed 30000 quotas together with 20 operators in four-line production. When four-line
production used, the duration cost will be decrease with a maximum profit. We are using that
percentage is 14% because we can get the highest profit but still under demand price. Our
factory price for the product can be approximately RM 49.8060 per item and still under RM50
as per requested.
21
CHAPTER 3
3.0 DESCRIPTION OF NEW DESIGN
3.1 RENDERED PHOTO
Figure 3.1.1 : Rendered photo
22
3.2 GENERAL ASSEMBLY AND EXPLODED VIEW OF DESIGN CONCEPT
Figure 3.1.2: Assembly drawing
Figure 3.1.3: Exploded drawing
23
3.3 DETAILED ENGINEERING DRAWINGS
Figure 3.1.4: Detailed drawing for cover
24
3.4 CLEAN AND CLEAR SKETCHES
Figure 3.1.5: First sketch idea
Figure 3.1.6: Final sketch idea
25
4.0 SELECTED PROTOTYPING MACHINE
4.1 Machine Type
Figure 1 : Moment 3D printing

The MOMENT has a closed frame, a heated print bed and can 3D print ABS and PLA parts.
The MOMENT Moment is delivered with a fan air system cooling system and equipped with
a full Simplify3D licence.
Figure 1.2 : Example product for 3D printing
26
4.2 Machine Operation
3D printing employs layered printing to create tangible objects using digital 3D models.
Whatever method a 3D printer employs, the whole procedure is almost the same.
Machine operation :
1. The production of a 3D model with the help of computer-aided design software. The
software is likely to give you some suggestion or even a clue concerning the structure of
the ultimate object applying scientific facts about utilized materials. That will help to
predict the behavior of the object under various conditions.
2. Transformation to STL (standard tessellation language) – the sketch in CAD format is
converted to STL, which is the format initiated especially for 3D systems in 1987 so as to
be used by SLA – stereolithography apparatus.
3. Removing to AM machine and STL file operating. An STL file is copied to the computer
operating a 3D printer. That’s the same as if you were to install a 2D printer.
4. Setting up the device. Each device has its own prerequisites for how to use it for each
new print. That would mean adding or refilling various materials the printer will use.
5. Creating. The whole procedure is mainly automatic. The thickness of layers id about 0,1
mm each. However they can be thicker or thinner. Hanging on the size of a thing,
machine and materials employed, the procedure might take several hours or even days.
Don’t forget to check occasionally to make sure there are no errors.
6. Removal. Take the printed object out of the printer. Take them as carefully as possible to
prevent injuries.
7. Post-processing. It may happen so that after an object is 3D printed it will require some
post-processing – either it is removing the remaining powder or the water-soluble
supports. Remember that sometimes materials may require some time to get solid. Be
careful not to break the object.
8. And finally the object is ready to be used.
27
4.3 Advantages
1. Rapid Prototyping
 Since 3D technology can manufacture stuff in an instant, it facilitates rapid

prototyping, which means, it takes really short time for designs to get converted into
the respective prototypes.
2. Low Production Cost
 The initial cost or cost of set-up is high, it is less when compared to labor costs and
other costs involved in manufacturing the product in the conventional way. Add to
this, the fact that the cost of manufacturing using 3D printing is the same for small-
scale and mass production, and you have a winning technology at hand.
3. Creation of Employment Opportunities
 The increasing use of 3D printing technology would create the requirement for highly-
skilled designers who are adept at using 3D printers, and technicians who are skilled
at troubleshooting.
4. Cost Reduction
 Rapid prototyping helps to reduce the costs of product development. There is no

need to develop special tools for each new product. Rapid prototyping uses the same
CAD and printing equipment each time. The automated prototyping process also
reduces staff costs.The costs of waste are lower, because the prototyping technique
only adds modelling material where needed. Conventional prototyping techniques
create waste through cut-off material or chippings as the tools create the finished
model.
28
4.4 Disadvantages
1. Manufacture of Dangerous Items

 If you give technology in the hands of people, there will always be a few who would
use it for the wrong purposes, and 3D printing is no exception. With everything being
created with a click of the mouse, this technology can be easily used to create guns
and other dangerous weapons. In fact, a Canadian man has reportedly created the
world's first 3D-printed rifle out of plastic, using a blueprint that he downloaded from
the Internet.
2. Size Limitations
 At present, 3D printers have limitations when it comes to size of the objects created.
However, in the near future, we shall have printers that can even print architectural
structures.
3. Raw Material Limitations
 Currently, 3D printing is viable for items made from a single raw material only.
However, the technology of creating stuff using more than one material is being
developed. During the '90s, 3D printing has surely come a long way. The cost of 3D
printers is quite high, and it is yet to become accessible to the common man.
However, efforts are being made to bring this technology to the masses with the
manufacture of printers that are not so expensive.
4. High Energy Consumption

 According to research by Loughborough University, 3D printers consume
approximately 50 to 100 times more energy than injection molding, when melting
plastic with heat or lasers. In 2009, studies at The Environmentally Benign
Manufacturing, a research group dedicated to investigating the environmental
impacts related to product manufacturing, showed that direct laser metal deposition
uses 100 times as much electrical energy as traditional manufacturing. For mass
production, 3D printers consume a lot of energy and are therefore better suited for
small batch production runs.
29
5.0 CONCLUSION
In conclusion, the speaker will support the promotion for the new movie, because the movie
fan will surely come to get the speaker to add in their collection. If this product be launcher
along the transformer movie, it will get positive response . Other than that this series is
greatly accepted by the audience and get more positive response. Our target to sold 30000
pieces of speaker can be reach. This can be see through the popularities of transformers.
Moreover, the price is acceptable.
30
3 REFERENCE
1. https://plasticker.de/recybase/index_en.php
FIGURE 1: ABS MATERIAL PRICE
2. https://www.indeed.com.my/salaries/Production-Operator-Salaries,-Penang
FIGURE 2 : WAGE RANGE OF WORKERS IN MALAYSIA(MANUFACTURING)
31
3. http://www.injectionmoldchina.net/cost-analysis.html
FIGURE 3: THE RATE OF MACHINE TONNAGE
4. https://www.bing.com/search?
q=yuan+to+rm&FORM=EDGNCT&PC=ACTS&refig=2281bb014c424353b20db0edcb84
7358
32
5. https://themoneyconverter.com/
FIGURE 4: MONEY CONVERTER
33
7.0 APPENDICES
1. Details drawing;
i Assembly view
ii Exploded view
iii Dust Cover view
iv. Clean Sketch
2. Product Design Specification
3. Product Cost Estimation
4. Concept Sketches
34

Product Cost Estimation

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Product Cost Estimation

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INTRODUCTION

Transformers is a series of American science fiction action films based on Transformers

from the films.

marketing to promote the product.

PRODUCT DESIGN SPECIFICATION

Multimedia speakers facelift from an existing product called ‘BINOCULAR’.

2.0 History & Background Information

Figure 1 : BINOCULAR Multimedia Speaker

3.0 Scope of Specification

5.2 Minor Design Parameter.

 Make sure sharp edges existed in new design.

7.0 Part List

ITEM QTY PART NUMBER DESCRIPTION MATERIAL STATUS

1 2 450-0001-00 LOUDSPEAKER - STANDARD

2 1 450-0002-00 PRINTED CIRCUIT BOARD - COMMON

3 1 300-0001-00 FRONT PANEL ABS COMMON

4 1 300-0002-00 BACK PANEL ABS COMMON

5 1 300-0003-00 STAND ABS COMMON

6 1 300-0004-00 POWER BUTTON ABS COMMON

7 1 300-0005-00 VOLUME CONTROL BUTTON ABS COMMON

8 6 230-0001-06 6MM BINDING HEAD SCREW MILD STEEL STANDARD

9 4 230-0002-10 10MM PN HEAS SCREW MILD STEEL STANDARD

10 1 300-0007-00 COVER ABS UNIQUE

2.0 PRODUCT COST ESTIMATION

2.1 MATERIAL COST

The selected material for the plastic parts is ABS.

The conversion of EURO to Malaysian Ringgit:

Therefore, 0.52 EURO = RM 2.39

Hence the price for the ABS material is RM 2.39/kg

2.2 WAGE RANGE OF WORKERS IN MALAYSIA(MANUFACTURING)

The source from https://www.indeed.com.my , the average salary for Production

2.3 THE RATE OF MACHINE TONNAGE

Referring to the selected website http://www.injectionmoldchina.net/cost-

80 Tonne =Yuan 45/hour= RM 27.24

Note that 1 Yuan = 0.61 Malaysian Ringgit

Table 1 : Front Panel moulding cost estimation.

Table 7: Common Parts cost estimation.

ITEM PART NAME PRICE/PIECE QUANTITY PRICE

2.6 ESTIMATION COST FOR THE COMPLETE ASSEMBLED PARTS.

ITEM PART NAME QUANTITY PRICE

2.7 ESTIMATION FOR FACTORY COST

The output of the product is maintained 30,000 units.

2.7.1 LOWEST PROFIT MARGIN

Targeted quotes are 30,000 units.

5 operators under one-line production = 50 units per day.

Operator`s wages are RM 1291.00

30000/50 = 600 days

Average months to complete = 600/31 = 19.35 = 20 months

Labour costs = 20 x 5 x 1291 = RM 12,9100.00

Factory Price for 5% profit margin:

ESTIMATED FACTORY PRICE

2.7.2 MEDIUM PROFIT MARGIN

ESTIMATED FACTORY PRICE

2.7.3 HIGHEST PROFIT MARGIN

ESTIMATED FACTORY PRICE

QUOTAS NO. OF FACTORY PROFIT PROFIT(RM) DURATION

Bar chart 1: Factory Price (RM) against Profit Margin(%)

Bar Chart 2: Number of operator against Duration in Month

Figure 3.1.1 : Rendered photo

Figure 3.1.2: Assembly drawing

Figure 3.1.3: Exploded drawing

Figure 3.1.4: Detailed drawing for cover

Figure 3.1.5: First sketch idea