Running head: Singapore Metals Limited 1

SINGAPORE METALS LIMITED

SINGAPORE METALS LIMITED 2

Table of Contents

Introduction..........................................................................................................................3

Problem Statement...........................................................................................................4

Benefits of the curled metal pads.....................................................................................4

What is the economic value to the customer of the curled metal pads?..........................5

What should be the price charged for the curled metal pads...........................................5
SINGAPORE METALS LIMITED 3

Introduction

SML has switched over time from self-produced items to other advancements tools. The

firm had a plan to trade metals as a final product, the firm later changed to selling foils to other

firms that used them as resources for their items. The victory story of SML is that, while external

factors management around the world power automobile production to stop the break out of

especially hot gases from the environment where they look for high conditions, SML developed

a “Slip-Seal” item that meets market statement and led to fast firm growth. A new item designed

based on market facts and figures has been the cause for SML's success. The Carl Metal protect

Pad shows a similar plan.

Firm Overview

 It manufacturers again sells products that use a specific brand of metal as raw material.

 Sales in 2007: $ 55m

 Improved new product

Product Overview

 Product: Curled Metal Protect Pad

 Raw material received by the firm form the suppliers.

 Used by builder in shaping process: operating collection (support structures such as pole) in

the ground

 Although it is crucial in the file of process, often missed by builder

 Uses folded metal technology

 Any size can be generated from same line/ bar raw material
SINGAPORE METALS LIMITED 4

Problem Statement

SML has been able to make new items, Curl Metal Protect Pads with great abilities in the

market. The new item is much better than any other product ever manufactured by SML.

If successfully presented in the market then it will increase the firm's sales almost double

and payback for the current decrease in the SML sales figures, which has brought a 42.2%

decrease in income from use from 2006 to 2007. The consumer is willing to buy the item;

"Allied building” asks for a price at which SML will consent to sell the item. Alex Tan, the

manager must make a commitment on pricing the item, which is useful for SML as it will set

such a price that will bring market approach and higher sales figures as required by the firm due

to its recent market position.

Benefits of the curled metal pads

Curl Metal protection Pads are used in the procedure of placing up build-up piles. They

are heavy radiation made of materials and metal that are used to carry any building. In addition,

they are very useful in areas where the clay can change under the mass of the building. These

piles are dug into the ground with heavy tools and Curl Metal protection Pads are used to save

the piles with a beat from damage.

The Curl Metal protection Pad acts as a negotiator between the hammer and the pyramid

and is used to move energy from the hammer to the pyramid without creating intensity and

strength to provide enough support to stop the anxiety. A free pad can split a lot, which will lead

to wash the use and extra builders' costs.

The different items used for this process were hard wood structures; were old-fashioned

and later returned by layers of aluminum panel.

SINGAPORE METALS LIMITED 5

Perverted metals have the feeling that they can bear any heat and can easily be extended

in length and breadth. Furthermore, setting them in layers will produce a terrible stage and a very

efficient flow.

What is the economic value to the customer of the curled metal pads?

Market Capacity

 Total demand = 290 - 390 m base of piles to be operated

 One set of wrap metal pads 10000 f

 One set of wrap metal pads = 4 originally installed, plus two added)

 Market condition = 29,000 - 39,000 sets of wrap metal pads i.e. 174,000 - 234,000 wrap

metal pads

 Economic value = $121.7m - $163.7m at $700 per pad

What should be the price charged for the curled metal pads

Seeing by the estimated cost data provided by the production manufacturer assuming that

the planned cost would be 360% of the cost of the wrought iron workers as in any other

product made by SML the prices would be as follows.

Estimates per Pad With Existing Equipment

SML Pad Size 30 cm 35 cm 44 cm 51 cm 58 cm 75 cm
V.C        
Material 46.92 61.71 95.43 121.71 159.48 287.07
Labor 86.4 99.21 150.06 171.21 207.48 355.08
T.V.C 133.32 160.92 245.49 292.92 366.96 642.15
Fixed FOH        
Dl - 360% 311.04 357.156 540.216 616.356 746.928 1278.288
TMC 444.36 518.076 785.706 909.276 1113.888 1920.438
CM - 50% 222.18 259.038 392.853 454.638 556.944 960.219
Selling Price 666.54 777.114 1178.559 1363.914 1670.832 2880.657
SINGAPORE METALS LIMITED 6

And based on the calculation it’s material cost is $46.92 for 30 cm SML Pad Size. Total

V.C is 133.2. The total Manufacturing cost is 444.36 and by adding Contribution Margin of

50%, thus the selling price is 666.54. And same calculation for other sizes as well.

Estimates with purchase of $150,000 of Permanent Tooling

SML Pad Size 30 cm 35 cm 44 cm 51 cm 58 cm 75 cm
V.C        
Material 46.92 61.71 95.43 121.71 159.48 287.07
Labor 34.92 45.75 65.55 80.85 91.71 168.27
T.V.C 81.84 107.46 160.98 202.56 251.19 455.34
Fixed FOH        
Dl - 360% 125.712 164.7 235.98 291.06 330.156 605.772
TMC 207.552 272.16 396.96 493.62 581.346 1061.112
CM - 50% 103.776 136.08 198.48 246.81 290.673 530.556
595.4 872.01
Selling Price 311.328 408.24 4 740.43 9 1591.668

Tan had the option to buy extra permanent equipment, which would decrease the labor

costs of the item which would have a major impact on the supply of F.C as well and would

decrease the total cost of the product by half.

In this scenario of purchasing the 150000 of Permanent Tooling that means less labor will

be used for manufacturing, as in 30 cm the variable cost will be same 46.92, but the labor

cost will be reduced. That is why the total variable cost is 81.84. the total Manufacturing cost

is also decreased as well by that and the overall selling price is 311 for the 30 cm pad size

after the purchase