Blueprint Senior 2

8/10/2019 Blueprint Senior 2

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UNIVERSITI TEKNOLOGI MARA MALAYSIA

FACULTY OF APPLIED SCIENCE

PRODUCT PROTOTYPE:

M & M VENDING MACHINE

PROGRAMME

BACHELOR OF FOOD SCIENCE & TECHNOLOGY (AS226)

GROUP

AS2035M

COURSE

ENT 600 : TECHNOLOGY ENTREPRENEURSHIP

PREPARD FOR:

PROF. DR. ISMAIL BIN AB. WAHAB

PREPARED BY:

NAME MATRIX NUMBER

NUR AQILA AMALINA BINTI JAAFAR 2011477392

NURFARAHIN BINTI HISHAMMUDDIN 2011273306

SITI AISYAH BINTI MOHAMED USUF 2011663698

SITI SALIHAH BINTI SALEH 2011266828


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M & M Vending Machine

Page 2

Table of Content

No Contents Pages

1.0 Executive Summary 3

2.0 Product Description

2.1 Purpose of Vending Machine

2.2 Unique Features

2.3 Operation

4

4 - 5

56

3.0 Technology Description

3.1 Main Component

3.1.1 Storage chiller

3.1.2 Conveyor belt and shaft

3.1.3 Infrared oven

3.1.4 Nozzle

3.1.5 Signaling

3.1.6 Receipt

3.2 Product Expansion

7

8

8

8

99

9

9

910

4.0 Market Analysis & Strategies

4.1 Customer

4.2 Market size

4.3 Competitors

4.4 Market share4.5 market strategy

11

11

12

1313-14

5.0 Management Team

5.1 Organization

5.2 Key Management Personal

5.2.1 Career Highlight

5.2.2 Duties and Responsibilities

5.3 Management Compensation and Ownership

5.4 Supporting Professional Advisors and Services

15

16

16

17

18

18

6.0 Financial Estimates

6.1 Start up costs

6.2 Working capital

19

20

7.0 Project Milestone 21

8.0 Conclusion 22

9.0 Appendices 23


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Page 3

SECTION 1

EXECUTIVE SUMMARY

Smart Vending Machine will provide a delightful and healthy Hot dog and Pizza to the public

community located in certain areas such as bus station, railway station, and colleges in

Malaysia. In each part of those two foods, there will have a variety of choices according to

customers demand, including Vege sausage, BBQ sausage, pepperoni pizza, Vege pizza and

so on. We will penetrate the vending industry with innovative, first to market, and high

technology vending machines. We will establish our own vending machine routes in

Peninsular Malaysia region that have functions and advantages not found in today's common

vending machines, thus providing a competitive advantage over more established

competitors.. Our product is emphasized on supplying high quality breakfast and supper

products which are ready to eat after been microwaved. Indirectly , this encourage people to

take a breakfast in the morning with minimum time spend as it is the crucial and important

meal.

In the vending machine there are several important components such as the storage chillers

for the foods storage at a suitable environment, conveyer system for the movement of the

food from one compartment to another, shaft that separate each compartment and also the

infrared oven as the heating element in the vending machine.

We will penetrate the vending industry with innovative, first to market, and high technology

vending machines. We will establish our own vending machine routes in Peninsular Malaysia

region. Our product is emphasized on supplying high quality healthy fast food products

which are ready to eat after been reheat. Our product is designed to encourage people to take

breakfast in the morning and supper in midnight with minimum time spend as it is the crucial

and important meal. Besides, our product prepares hygienic and healthy foods to the

consumer.

Our product is targeted to everybody. Most vending machines in Malaysia only provide soft

drink beverages. But our vending machine is the number one service that supplies food for

breakfast. Our main highlight here is healthy fastfood with hot and ready to eat meals. The

reheat frozen foods required minimum time to ready and consumers can enjoy it freshly as


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SECTION 2

PRODUCT DESCRIPTION

Currently, the phenomenon of most Malaysian people has a tendency to skip their breakfast

has gradually increased. The main reason of them to skip their breakfast due to lack of time to

prepare breakfast that may require some times. In order to get a healthy lifestyle, Malaysians

need to change their habit by taking breakfast everyday. Besides , Malaysians always facing

problem of hunger during midnight and unfortunately, most of the stalls are close during thattime.

2.1 PURPOSE OF VENDING MACHINE

By taking the advantages toward this situation, new vending machine has been

invented with special features. Our vending products restricted on breakfast and

supper menus which are microwavable.The menus selected are Hot dog and pizza.

The purposes of this vending machine are:

- to provide fast and healthy food for morning (breakfast) and midnight (supper) .

- to provide the variety and accessibility of food during morning and midnight.

- to ensure that the calorie intake by individual are under

2.2 UNIQUE FEATURES

The vending machine also called Smart Vending Machine because it has the ability to

calculate the calories intake by individuals. For the purchasing activities, it is done by

multiple techniques, either by cash or using Touch n Go card. For the Touch n Go

users, they need to top up their cards at the nearer places.


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Our vending machine consists of three important parts which are:

The chiller- The chiller functions to keep the microwavable products in cooled

conditions. The chiller temperature is around 3 to 5C. It keeps the food fresh without

thawing.

The microwave- The microwave functions to heat the microwavable foods at the

lowest time. The temperature of the microwave is set at 65C upon using. The

microwave will be automatically set when the food enters it. The length of time

required to heat the food is 2 to 3 minutes.

Monitor- This part will display the advertisement of foods that will be produced

which will then give the sense of attractiveness to the consumer.

2.3 OPERATION

The chiller will store the foods at cold temperature. When an order is placed, the

machine will send the food from the chiller to the microwave, microwave the food for

a pre-determined time at pre-determined temperature. In approximately 2 minutes, a

fresh, delicious, hot meal is served.

Raw materialsof vending machine:

Galvanized steel-material made for the bulk of the machine ranging from 10 gauge

to 22 gauge in thickness. The thicker gauges are used for the outside cabinet, external

doors, and internal tank. Thinner gauges are used for internal doors and plates.

Lexan- a tough polycarbonate plastic, is used in the front panels of the vending

machine. Sheets of Lexan in vending machines usually range from 0.13 in (3.18 mm)

to 0.25 in (6.35 mm) in thickness. Lexan is very difficult to break, flame retardant,


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relatively easy to shape, and can be treated to restrict UV rays, light, and heat

transmission. Product logos, names, and illustrations are silk-screened on Lexan

sheets, which are installed in channels in the doors of the vending machines.

Acrylic powder coatings-colored powders used to "paint" the surfaces of vending

machines. The powder is applied in a uniform layer and baked on during the

manufacturing process. Acrylic coatings withstand the rigors of weather and abuse

better than paints that are applied wet. In addition, acrylic powders more readily meet

governmental environmental standards.

Polyurethane foam- provides the insulation for the inside of the vending machine.

The foam is blown between the outer cabinet and internal tank of the machine, where

it cures into a very tough, rigid material. In addition to thermal insulation, the stiff

foam adds structural stability to both the cabinet and tank of the machine.


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SECTION 3

TECHNOLOGY DESCRIPTION

M&M is smart vending machines that were advanced from the ordinary vending

machine to produce a kiosk technology. The vending machine technology has been widely

developed by the established country, especially Japan. This vending machine are suitable

with the trends now days as it can prepare a delicious hot foods at faster rate than the having

foods at stalls or kiosk.

The processes start from when the users add the money. The vending machine was

designed to be able to accept only cash and touch n go (TnG) card through a scanningmethod. Then the user will be instructed to select the desired foods by pushing the button

provided and the button that light off will indicate that the foods are out of stock. Once the

users have selected their foods, the machine will check if the food is available or not. The

system will proceed with the menu if the product is available, if not the user are asked again

to select other foods. Then the system will directly get the food from the chillers where the

food is stored at temperature of 4 to 12C. The foods will be brought from the chillers to the

oven by the conveyer belt by passing through the opened and closed shaft that link the tunnel

from the chillers to the oven. The oven will heat the product at 65C for about 2 to 3 minutes.

Lastly the product will be pushed through opened and closed shaft by conveyer belt to the

placed for user to reached and take the food. If the users are purchasing our hot dog, the

system will asked the customer to choose the preferred sauce and adding extra money to

purchase. Then the system will be provided with a receipt of the food purchased and the

calories of the foods itself.

The main component of the vending machine:

a) Storage chiller

b) Conveyor system and shaft

c) Infrared oven

d) Nozzles

e) Signalling

f) Receipt system


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3.1 COMPONENTS

3.1.1 STORAGE CHILLER

This is the cooling element of the machine that will provide the suitable temperature for the

food storage. Optimum temperature range for the food storage is from 3 to 5C. This storage

chiller is a thermally insulated compartment that allows the heat to be pump (mechanical,

electronic or chemical) or transferring the heat from the inside of the vending machine to its

external environment. Thus this will ensure that the inside of the vending machine is cooled

to a temperature below the ambient temperature of the room. The inside environment of the

chillers is very critical as its environment will affect the shelf life of the food s as it help

reduces the rate of spoilage of the food.

3.1.2 CONVEYER SYSTEM AND SHAFT

A conveyer belt consists of two or more pulleys, with a continuous loop of material of the

conveyer belt that rotates about them. One or both pulleys are powered, moving the belt and

the material on the belt forward. The powered pulley is called the drive pulley while the

unpowered pulley is called idler. The belts consists one or more layers of material and made

up of rubber. The shafts that will be opened and closed automatically when the machine is

operate.

3.1.3 INFRARED OVEN

The heating element used in this machine is the infrared oven. The oven operates by heating

the food by bombarding it with electromagnetic radiation in the infrared spectrum causing

food molecules to be vibrated thus building up a thermal energy, this process is known as

dielectric heating. The infrared radiation will help the heating of the foods to be at a fast rate

and efficiently at 65C for 2 to 3 minutes. The electronic components and controls consist of

timer motors, switches, and relays while other hardware components are made up of a variety

of metal and plastic parts such as gears, pulleys, belts, nuts, screws, washers and cables. The

important hardware used in the oven are the trays to place the pizza and the roller for the hat

dog.


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3.1.4 NOZZLES

For the sauce, the nozzle provided with a 3 nozzle head according to the number of sauce

provided. The nozzle can rotate easily to change the head for the preferred sauce. The sauce

is kept in an air tight vessel that has a tube that made up of a flexible plastic to suck up the

sauce with the aid of the pumping system.

3.1.5 SIGNALLING

The vending machine has a direct signal to the HQ to inform the problems arise from the

machine. For example if the machine is low in the food stock it will send a signal directly to

the HQ to inform the problem and for the HQ to take action by refilled the stock. If there is

other problem that arise the HQ will immediately take action to maintain the vendingmachine to be always serve the customer.

3.1.6 RECEIPT

At the end of purchasing of the foods, the customer will be provided with a receipt of the

purchase and the calories per serving of the foods. The calories will be displayed along the

side of the labelling for each food and as the product have been produced the machine will

calculated the calories intake by adding all the purchased foods. The calories are calculated

by the system that has been installed.

The technology will be improvised in the future with more menus and new technology

which module for remote auditing that can check product levels from home. Thus, the

technology may also improvise by alerts by email if stock level runs.

3.2 PRODUCT EXPANSION

Each product in the market must have a development to advance the machine in order to

survive. In the future, our team group projects will make several upgrading or expansion of

the machine feature and system. The upgrading will give the machine extra functions to make

the machine batter and give more benefit to serve the customers.

The other advancement is to develop a LCD touch screens vending machines


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The future vending machine will be upgraded in this project is the installation of the

sensor control system. Example of a sensory system the motion sensors shows digital clock

and various animations to attract potential customers it also can produce text, picture and

animations in HD quality, but as soon as the potential customer stands in front of the machine

and it displays specific adds to the that person.

INTERIOR VENDING MACHINE MECHANISM

STORAGE CHILLERS

FOR PIZZA

STORAGE CHILLERS

FOR HOT DOG

INFRARED OVEN

Consist of 2 trays:

Roller

Flat trays

HOT DOG RECIEVING

DOOR

PIZZA RECIEVING DOOR

SAUCE STORAGE

TUBE NOZZLE

SHAFT

CONVEYER


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SECTION 4

MARKETING ANALYSIS AND

STRATEGIES

Informations in this section are provided in order to support the assertion that our product cancapture a substantial market in growing industry and stand up to competition.

The sections involved under market analysis are: Customers

Market size and trends Competition Market share and sales Market strategy

4.1 CUSTOMER

M & M ( morning and midnight ) vending machine is invented for everybody as it provides a

wide range of healthy fast food product. However, the main customer of our product will be

the one who has frantic and busy life but wants to get a delicious and mouth feel meal as

quick as a flash. Our vending machines are available in many places.Schools and offices

sometimes use vending machines as a simple kind of cafeteria. Besides, the management at a

store or a hotel mostly decided to have vending machine in order to offer something extra to

the customers.Furthermore, to avoid people to have a aching head or roaring stomach, we

will provided our vending machine in bus stations, railway station, and airport. Based on the

statements above, it is obviously and clearly showed that our product are easily reached and

receptive for the Malaysian citizen in all over the national regions.

4.2 MARKET SIZE

According to the Department of Statistics Malaysia (2013) the total population of this

country is 28 million approximately .The population distribution is highly uneven, with some

20 million residents concentrated in Peninsular Malaysia.70% of the population is urban. Due

to the rise in labor-intensive industries, Malaysia is estimated to have over 3 million migrant

workers, which is about 10% of the Malaysian population. Hence, based on the statistical


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data above, it is profitable for using a vending machine in this developing country.

4.3 COMPETITORS

In order to establish a market niche and compete effectively, it is imperative for our

company to identify the possible competitors as well as their strength and

weaknesses.Vending machines were increasingly placed in shopping malls in order to reach

out to consumers. Different types of vending machines, such as for packaged drinks vending

and packaged food vending, as well as other products vending, such as mobile reload

coupons vending, were placed in major shopping malls with high customer flows. F&N

Coca-Cola led vending in 2012 with a 4% value share. Machines from F&N Coca -Cola offer

soft drinks in metal beverage cans and Polyethylene Terephthalate (PET) bottles. Examples of

types of soft drinks offered by the companys vending machines include carbonated drinks,

bottled water and Ready To Drink (RTD) tea. Hence, the wide availability of vending

machines provided by F&N Coca-Cola in various public locations, including shopping malls,

recreational centers and transport centers, helped the company to maintain its leading position

during 2012. However, in Malaysia the usage of vending machine is not as big as Hong Kong

and Japan that both with highpopulation density,relatively high cost of labor and limitedspace. Besides, the usage of vending machine in Malaysia limited to certain types of product

such as snacks and beverages as stated earlier. Our products are focusing on healthy instant

cooked-food provided with auto-calculated calorie for each product. Hence, it is a pull of

opportunity for us to implement the usage of vending food machine to this developing

country.
http://en.wikipedia.org/wiki/Population_densityhttp://en.wikipedia.org/wiki/Population_density


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4.4 MARKET SHARE

The target market of our product is the Malaysian citizens. Thus, the total market size based

on this country.

Based on your assessment of the advantages of your product or service, the market sizeand trends, customers, competitors and their products, estimate the share of themarket and the sales in units and ringgit that you will acquire in each of the next threeyears. Remember to show assumptions used.

Product/service Market Share and Sales

Year

2013 2014 2015

Market share (%) 30 40 50

Total sales in RM 120 000 450 000 750 000

4.5 MARKETING STRATEGY

In the vending machine sales industry, that is a possibility to make a good amount of

revenue each year. Candy bar vendors can bring in a monthly income of about $100 per

candy machine. In order to see how the sales go,it is a good idea for a us to start out slow and

maybe just have three or four vending machine sales in operation. This way, we are not

investing a whole lot of money in the vending machines until we know how much profit we

will make.

Besides, one of our objective is to position M& M on a top rank of vending food

machines in Malaysia.M & M will strive to aggressively increase their market penetration.

The marketing strategy will seek to first create customer awareness regarding the offered

products, develop the customer base, and work toward building strong customer loyalty.

The message that M & M Vending offers the best vending healthy fast food machine. This

message will be communicated by several methods. The first method is participation in trade

shows that will be a valuable resource. The second method will be distributor open houses.

The third method is the development and use of M & M Internet website. The last method of

communication that M & M Vending will be using advertisements in trade publication.

Besides, our strategies also related to the following approaches which are pricing,


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distribution, advertising and promotion, and customer service.

Pricing-M & M pricing scheme is designed to be competitive and at the same time

provide M & M and the distributor (when applicable) with a fair margin.

Distribution-All of the products can be distributed within the Malaysia.

Advertising and Promotion-M & M Vending will employ several different methods

for their advertising and promotion campaign.

Customer Service-Exceptional customer service is a necessary component for making

this business successful.

During the initial stages of the marketing plan development, M & M held several

different focus groups with perspective customers. These focus groups were developed out

of interactions/introductions made at the regional trade show. The goal of the focus groups

was to solicit a significant amount of information from perspective customers.

M & M was very careful with the facilitation of the focus groups, attempting to insure that

the results were as valid as possible. The groups ranged in size from seven to nine people.

The focus groups were video taped to allow M & M to review them more carefully after the

fact. Overall, the focus groups provide M & M with a wealth of information that was

instrumental for us in launching and growing our business.


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SECTION 5

MANAGEMENT TEAMS

This section explain the organization, background of shareholders, key management

personnel, primary duties and management compensation and ownership

5.1 ORGANIZATION

The following table shows the specialization of individual in our organization and key

management

Key Management Roles Name

General Manager Nur Aqilah Amalina Binti Jaafar

Administration manager Nurfarahin Binti Hishamuddin

Marketing Manager Siti Aisyah Binti Mohamed Usuf

Operational Manager Siti Salihah Binti Saleh

Table 1: Management team

Our team members are not enough to full some executive role with full-time mode.

Therefore, there is an external consultant was hired in order to consult company financial.

Our team members still search for candidate that qualify to fill up the financial manager

position. By the end of year 2013, the financial consultant will be replaced by full-time

member.


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5.2 KEY MANAGEMENT PERSONAL

5.2.1 Career Highlight

This section brief the career highlight, duties and responsibilities for our team work

Position Career Highlight

Position : General Manager

Master of Food Engineering studies,

Bachelor in Food Science &Technology studies

Seminar on Key of Technopreneur byMEDEC, Kuala Lumpur

Seminar on business management atShah Alam

Position : Administration Manager

Master of Policy and PublicAdministration,

Bachelor in Food Science &Technology studies


Seminar on business management at

MITC Malacca

Position : Marketing Manager

Master of Marketing and Consumerstudies

Bachelor in Food Science andTechnology


Seminar on business management atKuala Lumpur

Position : Production Manager

Master of Food Processing

Engineering Bachelor in Food Science and

Technology


Seminar on Production Career atJohor Bharu


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5.2.2 Duties and responsibilities

NAME & POSITION DUTIES & RESPONSIBILITIES

Name: Nur Aqilah Amalina Binti

Jaafar

Position : General Manager

Responsible to make sure that the companyachieves the goal and objective of the

organization

Plan the activities of the company

Accept and make approval of the proposals

Act as leader of company and be responsibleto coordinate the subordinates

Name: Nurfarahin Binti Hishamuddin

Position : Administration Manager

Deals with the entire administration task and

at same time as the Public Relation in thecompany

Responsible of selecting workers incompany

Act as an assistant manager for theadministration side

Ensure all the fixtures and fitting alwaysenough for operation

Name: Siti Aisyah Binti MohamedUsuf

Position : Marketing Manager

Ensure sales target that have been set can beachieved

Make research and development

Make survey that related to customersatisfaction to increase product quality

Plan and evaluate a new marketing strategy

Prepare marketing budget

Name: Siti Salihah Binti Saleh

Position : Production Manager

Make sure that the quantity and quality ofthe product is at highest level

Look for the supplier to supply inventories

and raw materials Monitor activities related to process of

products


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5.3 MANAGEMENT COMPENSATION AND OWNERSHIP

The company's project implementation is about RM 275 300. Our team members are agree to

contribute the capital which is amount RM 65 000.

Name & Position Monthly salary Share of ownership Amount of Equity

investment

Name: Nur Aqilah Amalina Binti

Jaafar

Position : General ManagerRM 3,200 35% RM 22,750

Name: Nurfarahin Binti

Hishamuddin

Position : Administration ManagerRM 3,000 25% RM 16,250

Name: Siti Aisyah Binti Mohamed

Usuf

Position : Marketing ManagerRM 3,000 20% RM 13,000

Name: Siti Salihah Binti Saleh

Position : Operational ManagerRM 3,000 20% RM 13,000

5.4 SUPPORTING PROFESSIONAL ADVISORS AND SERVICES

Our company requires supporting services in term of financial and also certification for

our vending machine. Therefore, there were two Professional Advisors that have been

selected for our venture

Name of Professional Advisors Services Provided

SIRIM QAS International Certification, inspection and testing

services

YK Consultancy Financial planning portal


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SECTION 6

FINANCIAL ESTIMATES

Financial plan is the second last section of Technology-based Business Idea Blueprint (TBIB)

that describes the financial estimation to make business venture to remain profitable and

solvent. Furthermore, financial plan also is a key point in determining whether or not the

TBIB is going to be able to attract any investment in the business idea.

In this financial plan, it will discuss only on One-time Start- up Costs and Working capital.

Start- up cost is the actual amount of money needed to start business venture while working

capital is the amount needed to keep it open or operating.

6.1 START- UP COST

START-UP COSTS RM

Moto vehicles 120,000

Business fixtures and equipment 20,000

Machinery 60,000

Installation of fixtures and equipment 20,000

Starting inventory cost 100,000

Offices supplies 1000

Legal and professional fees 5,000

Advertising for opening 1,000

Utility deposits 3,500

Licenses and permits 2,000

Insurance and Road Tax for Motor Vehicle 3,000

Start-Up Costs 335,500


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6.2 WORKING CAPITAL

Working capital represents the amount of initial expenditure required to finance the daily

operation until the business gets its first sale. Besides that, the amount of working capital is

dependent upon the period until the firm can generate enough sales to cover its short term

expenditure.

WORKING CAPITAL(MONTHLY) RM

Delivery expenses 500

Salaries and wages 30,000

Rent (building) 2,000

Utilities 2,500

Offices supplies 500

Insurance 2,500

Maintenance 2,000

Raw materials 10,000

Miscellaneous 1,000

Contingencies (5-10%) 2,500

Total working capital 53,500


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SECTION 7

PROJECT MILESTONE

Our target to complete the business venture is within one year. To meet the goal, the month-

by-month schedule associated with fix deadline was arranged.

TASK YEAR 2013

MONTH

1 2 3 4 5 6 7 8 9 10 11 12

Review

requirement

system andsuitable

characteristic

Completion of

design and

development

Completion of

prototype

Obtaining of

sales

representative

Ordering ofmaterials in

production

quantities

Starting

production

and

operations

Receipt and

delivery of

first sale


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SECTION 8

CONCLUSION

This vending machine are suitable with the trends nowadays that provide the need for

consumer with hot and delicious food to be enjoy at time saving. There is no other morning

and midnight vending machine that are commercialize widely in Malaysia. We are confident

with our product and management to be succeed.


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SECTION 9

APPENDICES

Background of Partnership

Name : Nur Farahin Hishamuddin

Identity Card Number : 920729-05-5180

Telephone : 017-2394225

E-mail : [email protected]

Date of Birth : 29 July 1988

Age : 25 years old

Gender : Female

Marital Status : Married

Academic Qualification : Master of Policy and Public Administration,

: Bachelor in Food Science and Technology

Skills : Communication in English,Arabic

: Computer skills

Experiences : Assistant of Administration Manager

Present Occupation : Administration Manager


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Name : Siti Salihah Binti Saleh


Telephone : 013-7062756


Date of Birth : 07 January 1992

Age : 21 years old

Gender : Female

Marital Status : Married

Academic Qualification : Master of Food Processing Engineering


Skills : Communication in English

: Computer skills

Experiences : Assistant Production Manager

Present Occupation : Production Manager


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Name : Nur Aqilah Amalina binti Jaafar


Telephone : 018-3226811


Date of Birth : 03 February 1992

Age : 21 years old

Gender : Female

Marital Status : Single

Academic Qualification : Master of Food Engineering studies,

: Bachelor in Food Science & Technology studies


: Computer skills


Present Occupation : General Manager

Previous Business Experience: - Manager of Rasa Sayang Restaurant.


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Name : Siti Aisyah Binti Mohamed Usuf


Telephone : 012 5155984


Date of Birth : 07 August 1992

Age : 21 years old

Gender : Female

Marital Status : Single

Academic Qualification : Master of Marketing and Consumer studies



: Computer skills


Present Occupation : Marketing Manager

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Blueprint Senior 2