4. Scale up the 5M process to 1000 times per day production from the current recipes.

Recalculate the 5M and find ways to reduce further the cost of the production. Eg: Can any byproducts be recycled or recovered or sold to different companies? Do you need to 1000 of the same equipment or you can work efficiently by making process scheduling.

M1: Materials Phase I 80 g Castor Oil 2.2 g Iron Oxide/Mica Powder/D&C color (a combination to obtain the desired shade of lipstick) 10 g Mica White (for a pastel shimmer lipstick) otherwise add this additional amount of another pigment. Phase II 14 g Beeswax Pearls 9 g Carnauba Wax 2 g Vitamin E Oil 5 g Lanolin Phase III Drops of Grapefruit Seed Extract Drops of any all natural flavor oil (we used Cranberry) Phase IV Lipstick Container

The scale up for 1000 times per day of materials (M1) is shown in table below.

M2: Methods Process 1. Grinding Method Crash some Phase I ingredient (iron oxide, mica powder, D&C color and/ or Lip Tints) by using knife. 2. Mixing + Heating Put all the ingredients from Phase I into a small pan over very low heat. Stir well with stirrer or spoon. Add the ingredients from Phase II and heat until the mixture reaches 170 or until fully melted. 3. Filling Remove from heat then add the ingredients from Phase III and pour into lipstick tubes or lip pots. 4. Cooling 5. Mold releasing 6. Finish& Assembly Cools the lipstick in the freezer or cooler at 0C - 5C. Release the lipstick from the mold set, and shaping any defect from the mold by lamp fire. Putting lipstick product within each lipstick container to finalize the product for sale.

M3: Machinery Small pan Heater Knife Stirrer or Spoon Lipstick tubes or lip pots Freezer Lamp fire

M4: Manpower

Manpower Wages

Quantity 1000

Price RM 50,000.00/day

Cost / Unit RM 5000

M5: Money (Costing) Raw material Quantity (1000 units of lipstick) Castor Oil Iron Oxide/Mica Powder/D&C color Mica White Beeswax Pearls Carnauba Wax Vitamin E Oil Lanolin Grapefruit Seed Extract Cranberry Natural oil 10kg 14kg 9kg 2kg 5kg 0.5L 0.5L RM 10/kg RM 30/kg RM 20/kg RM 30/kg RM 25/kg RM 40/L RM 60/L RM 100 RM 420 RM 180 RM 60 RM 125 RM 20 RM 30 80kg 2.2kg RM 40/kg RM 20/kg Price, RM Cost/unit (1000 unitof lipstick) RM 3200 RM 44

Material

Quantity (1000 units of lipstick)

Price, RM

Cost/unit (1000 unit of lipstick)

Lipstick

Mold

or 1000 units

RM 1.50/unit

RM 1500

Lipgloss Container

Utilities

Quantity

Price, RM

Cost/unit (10 units of lipstick)

Electricity

1000 KW

RM 0.218/KWH

RM 218

Total Cost, RM (1000 units of lipstick) Selling price, RM12/unit X 1000 Gross Profit Margin

= RM6397 = RM12, 000 = RM5603

For the scaling up the production to 1000 times per day one wont need to buy the same 1000 equipment but changing the old and conventional way of production to new automated machine is more preferable. Firstly, in grinding process instead of using knife (1000 piece of knife) one can use a grinder that come with a blade that can spinc circularly and crash the iron oxide, mica powder, D&C color and/ or Lip Tints into desired shapes. Then, for the next process which is mixing and heating process the raw material are melted and mixed. Pan is not very suitable equipment for this stage when it comes to scaling up the process to 1000 times unit per day so barrel might be a good choice. This barrel should be made of stainless steel or ceramic in order to withstand the high temperature of melting process of the raw material. Besides that, a mixer that comes with an agitator will be the right equipment for the scaling process since one can whisk a mass amount of liquid by using hand. Then, for the filling process, fully servo driven high quality lipstick filling is more preferable for scaling up the process. This because this method can avoid the tendency of spilling up the mixture before pouring them into the lipstick tubes or lip pots and this will cause some loss in the production process. Besides, since the mixture is very hot, so a good safety measure it is crucial to use an automated machine to operate the process as a substitute to man power (labor). Cooling process can be proceed with the old method which is by using freezer, but there is another alternative and even more suitable for mass production which is by using automated mold which are kept cold. Flaming is another crucial process in producing lipsticks, since it can improve any flaw and pinholes on the surface of the lipstick. This process can be done using a flaming cabinet by passing the lipstick through it. By using flaming cabinet, flaming process can be faster. Finally, the last stage of lipstick production is the finish and assembling process. This process is done according to batch process. Once the tube is retracted from the mould the tube is capped and the lipstick is ready for labeling and packaging. This process is done automatically by machine since this can lower the demand of labor for the final stage. Other than that, machinery application can avoid the dumping or overflow of products that can be caused by the slow rate of human works compared to machine which can automatically controlled by computer.

Finally, from the suggestion above we can conclude that fully automated machine is more preferable when we come across mass production (1000 times per day production of scaling up), since this can lowered the need of man power in process production. For example, by using machine we only need 50-100 labor and only cost RM2500, instead of sticking up with the old method that might devour us RM50, 000 for 1000 of workers where this might consume a large of amount of money and economically will give us a big drawback in the cost of production.