Contents:
1.Project Summary
1.1Promoters
1.2Product
1.3Market
1.4Investment
1.5Short overview of key issues
2.Project Plan
2.1.Promoters
2.2.Product
2.3.Production
2.3.1Process description
2.3.2Proposed level of output
2.3.3Investment Details
2.3.4Investment effect
2.3.5Raw Materials
2.3.6Source and cost
2.3.7Quality and training
2.3.8Environment
2.3.9List of equipment
2.3.10Employment
2.4.Marketing
2.4.1.Industry background
2.4.2.Market size
2.4.3.Markettrends
2.4.4.Market consumer
2.4.5.Market segment
2.4.6.Competition
2.4.7.Marketstrategy
2.4.8.Pricing policy
2.4.9.Marketing plan
2.4.10.Projected market shares
2.4.11.Management and employment
2.4.12.Strategy for future development
3.Finance
4.Profitability
Annex 1 – Curriculum Vitae
Annex 2 – Calculation of Compartments’ Volume
Annex 3 – Drawing of the kitchen and four compartment household waste bin
Annex 4 – Drawing of the production flow
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2006 Student Awards / Galway-Mayo Institute of Technology1.Project Summary
1.1Promoters
“A promoter is an individual that finds out a new idea and launches himself in the development of that novelty. A promoter will analyse the market opportunities, threats and check if the new proposal suit the market. The risk taking is required”
We are a team of five international entrepreneurs with each different qualification, as follows: one Romanian student in Mechanical Engineering, one Irish student also from Mechanical Engineering, and three French students from Marketing. This melting of origins provides to our project a cultural diversity and also different points of view and ideas. Being aware of the ecological problem nowadays, we have decided to launch a reliable product, which shall be used for the recycling process. The separation of waste has been our target.
1.2Product
“A product is a good or service able to satisfy more or less completely a need”
After comprehensive research on the major environmental issues, we have developed a product that will help to ensure an effective separation of waste material produced in a household. According to the National Waste Report 2004, there are four major types of waste, and accordingly we have decided to design a four compartment household waste bin.The four major types of waste identified by the national waste report are:
plastic, paper & cardboard,
organic,
glass and
non-recyclable waste. /
1.3Market
“The market place is a place of meeting between a supply and a demand of product satisfying a determined need. In a narrow point of view the market notion represents the consumers or potential consumers of the product.”
The market of our product is centred on householders and particularly the kitchen items.
We are going to follow the Porter’s model of the market in order to understand ours. According to Porter the market is composed of five elements:
- The suppliers, which provides the raw materials and the components of the product.
- The competitors: our competitors are represented by the producers of one single compartment bins. There is a wide range of prices for regular waste bins, starting from 8 euro to 175 euros.
- The new entrants: taking into account that this is a new product, there are a lot of risks involved. A major risk is represented by the possibility of duplication of the design by future competitors. The costs of entry are high (purchase of a mould, raw materials etc.), we can make the market less attractive with an economy of scale.
- The substitutes: the reliability of the substitutes depends on a technical comparability, a relative price and cost of switching. The substitutes of our product.
- The buyers: concerning our product, the buyers represent the Irish households. It is obvious that almost every households is already equipped with bins, consequently our marketing strategy is going to be based on convincing our target market to change their present bin for ours. We have to show them the advantage of our product through the liability of our goods, the benefits of long time investment with our customers and the contributions we are making for the environment.
1.4Investment
The investment is required for financing the raw materials, equipment, premises, software and hardware in order to design, manufacture and market the four compartment household waste bin.
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2006 Student Awards / Galway-Mayo Institute of Technology1.5Short overview of key issues
The inappropriate waste management represents a major issue of our times. It is visible that the diversion of biodegradable waste from landfill has shown little progress and that, in particular, the municipal waste remains a considerable challenge to achieve the landfill diversion targets, set down by the Landfill Directive.
In this respect, the challenge is to improve the present waste management and to provide the solutions to environmental issues. Our product is coming as a solution to the problems raised by the separate waste collection. A smarter way of waste collection will lead to a better global waste management.
Another key issue is the necessity to integrate the four compartment household waste bin in the existing architecture of the kitchen. This waste is specially designed to become an essential item in everyone’s kitchen.
The product will provide an important service to householders and also to the environment. Furthermore, the materials, which have been chosen we feel best, suit our product and are mechanically correct for this type of design.
The last, but not the least important issue is represented by the financial components involved along the entire designing and manufacturing process. The imperative requirement for major improvements in the ways of waste management is making this particular product to become a necessity of our times. As a consequence, financial resources must be found in order to develop and improve the four compartment household waste bin.
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2006 Student Awards / Galway-Mayo Institute of Technology2.Project Plan
2.1.Promoters
The name of our company is Binster Ltd.
The date of incorporation is the 16th February 2006.
Our company gathers five managers, each one having a determinant function, bringing to the company different values, which are necessary for its correct operation. The particularity of our business is that our team is multinational; thereby we brought to our business different ways of thinking that enriches the common reflexion.
The details of our directors are presented, as follows (see Annex 1):
The present Managing Director is Emilie Combe, which is from the area of Avignon in France and has a BBS in marketing from GMIT. Her course in France is very diversifying; she studied two training courses of long duration, which enabled her to acquire good knowledge of management.
The present Marketing and Design director is Aurelie Bureth, which is from the area of Toulouse in France and has also a BBS in marketing from GMIT. She has experience in the launching of products through a major project in second year in the university.
The present Marketing Director is Line-Jacques Leuly, which is from the area of Martinique in France and has a BBS in marketing from GMIT. Her course in France is primarily the bases on management and finance, which is a major asset for our company, enabling her to acquire good knowledge and a real vision of the company.
The present Production Directors, the Head Director is Andrei Soltan, which is from the area of Marasesti in Romania and has an honour in Mechanical Engineering. His course is much diversified; he has knowledge of management and administration but also engineering, being a student of the Faculty of Engineering and Management of Technological Systems.
The co director is Jacinta Barrett, which is from the area of Co-Cork in Ireland and has an Honour in Mechanical Engineering. She has received qualifications in medical Device Engineering and Production Engineering. She offers a great deal of knowledge in the designing of this product.
2.2.Product
Our product was developed in order to counter act the issues raised by the increasing quantity of household waste as part of the municipal waste as shown by the National Waste Report 2004.The necessity of this product is given by the necessity of effective household waste collection. It is an important factor in the international aspects in environmental behaviour.
As previously stated, the household waste can be divided into four major types of waste, as following: /
Plastic: paper, magazines, plastic bottles and bags, cardboard, milk and juice cartons and empty food tins and drink.
Organic: all food waste, paper towels and tissues, grass cuttings, pruning and leaves.
Non-recyclable waste: nappies, tin foil, blades, toothpaste tubes, non-CFL light bulbs, crisps packets, biscuit wrappers, wax-paper wrappings, and yoghurt containers.
Glass: all glass jars and bottles.
The garbage bin was designed in order to facilitate different quantities of household waste. The use of each compartment is to be decided upon by each individual household owner. In this respect we have designed three different types of compartments, as follows:
two identical compartments with a capacity of 35 litres each, (see Annex 2);
a third compartment with a capacity of 87 litres (see Annex 2) and
a fourth compartment, specially designed for glass with a capacity of 60.5 litres (see Annex 2).
The fourth compartment is provided with a special wire mesh frame in order to ensure a safe storage for glass bottles,
The effective collection of household waste is to ensure the increase of quantity of recyclable waste and to reduce the landfill. By introducing this type of waste bin we want to dispose the waste products evenly. We want to divide the waste products in an environmentally friendly way. As stated in the National Waste Report 2004, the landfill is decreasing and the recovery is increasing, but the progress can be considered to be slow. The target for 2013 for the recovery is 50% and we know that by producing this type of waste bin we will help the recycling process to reach this target.
From studying this design we have established that this type of product has become part of a kitchen unit taking into account the existing furniture (see Annex 3). Therefore, the height of the bin will be 900mm, which is a normal standard height of a unit. The dimensions of the bin are designed in such a way that it has enough capacity to maintain a high level of recyclable waste.
The dimensions which we have decided upon for this product are, as follows:Length: 550mm
Width: 550mm
Height: 900mm
The drawer compartment, which is part of the overall structure, has a height of 200mm, length of 550mm and a width of 550mm. The top compartments, two of which are of the same capacity, have a length of 225mm, height of 700mm and width of 225mm. The third compartment is the largest of the three and has a length of 550mm, height of 700mm and the width is 225mm. The bottom compartment has a length of 550mm, a height of 200mm and a width of 550mm. /
The most suitable material for this product is the High Density Polyethylene (HDPE). This material best suits our product because it is a low cost plastic, it is a hard and strong Polyethylene, lighter than water, also can be easily moulded and it is high resistant to many acids and solvents.
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2006 Student Awards / Galway-Mayo Institute of Technology2.3.Production
2.3.1Process description
Injection Moulding is the process of forcing melted plastic in to a mould cavity. Once the plastic has cooled, the part can be ejected. Injection moulding is often used in mass-production and prototyping. Injection moulding is a relatively new way to manufacture parts. The first injection moulding machines were built in the 1930's.
There are six major steps in the injection moulding process:
- Clamping
An injection-moulding machine consists of three basic parts: the mould plus the clamping and injection units. The clamping unit is what holds the mould under pressure during the injection and cooling. Basically, it holds the two halves of the injection mould together.
- Injection
During the injection phase, plastic material, usually in the form of pellets, are loaded into a hopper on top of the injection unit. The pellets feed into the cylinder where they are heated until they reach molten form. Within the heating cylinder there is a motorized screw that mixes the molten pellets and forces them to end of the cylinder. Once enough material has accumulated in front of the screw, the injection process begins. The molten plastic is inserted into the mould through a sprue, while the screw controls the pressure and speed.
- Dwelling
The dwelling phase consists of a pause in the injection process. The molten plastic has been injected into the mould and the pressure is applied to make sure all of the mould cavities are filled.
- Cooling
The plastic is allowed to cool to its solid form within the mould.
- Mould Opening
The clamping unit is opened, which separates the two halves of the mould.
- Ejection
An ejecting rod and plate eject the finished piece from the mould. The un-used sprues and runners can be recycled for use again in future moulds.
Advantages of Injection Moulding:
high production rates
high tolerances are repeatable
wide range of materials can be used
low labour costs
minimal scrap losses
little need to finish parts after moulding
Disadvantages of Injection Moulding:
expensive equipment investment
running costs may be high
parts must be designed with moulding consideration
2.3.2Proposed level of output
From our calculations, our estimated target for 2 years time is 13,140 units.
2.3.3Investment Details
The necessary investment to manufacture the garbage bin can be divided into the following main items, as follows:
premises,
hardware & software and
manufacturing devices
The location of the premises is established based on factors that will influence the total cost of the manufacturing process, existing market and the road links with major cities in Ireland. Taking into account all these factors, we have decided that the most suitable location for the premises would be Galway City.
The second component of the investment is the consequence of the designing process. Computer Aided Design Software shall be used to design the moulds, which will be acquired at a later stage.
For the third major investment we must take into account the nature of the raw materials to be used and the nature of the manufacturing process. In this respect, 3 moulds are to be acquired together with handling devices, which will be used during the fifth step of the moulding process (i.e. Mould opening). Also, 5 different benches are to be used during the Preliminary and Final Quality Inspection phases (see Annex 4).
2.3.4Investment effect
The investment will achieve to high standards of recycling for people, which will improve the environment in the long run. We want this product to be a high effect in the percentage in the national waste recovery.
2.3.5Raw Materials
The materials, which are suitable for this project and also mentioned earlier, are as follows:
HDPE;
Handles;
Hinges;
Roller hinge;
Wire mesh frame;
Moulds.
2.3.6Source and cost
The wire frame, which is the structure for the drawer, is going to be bought from a supplier. This supplier works extremely well to satisfy there customers needs. They have looked at our design and are very happy to accept us as customers. They really enjoyed our product and thought that is was a very useful and practical design. The cost of our mould is going to be 10,000 euros. The cost of our material is 506 euros per tonne. The total of the smaller items, which are the handles and the hinges, amounts to 83.04 euros.
2.3.7Quality and training
It is a necessity that all of our employees and our-selves will have the proper and adequate training. This is a set guideline as everybody needs to know what exactly he or she are meant to do and what they are able to do. It is also a safety aspect, because we need to know if our employees are working in a safe and friendly environment. Each product that we will produce will be of top standard. There is no room for failure. Each product will be inspected and checked for any damage, faults or cracks. If a product is in any way damaged then it will not leave the shop floor.
2.3.8Environment
The environment is at the top of people’s priorities today. It is vital that we look after it as so much to date has been destroyed. We feel that by designing this product, we will help to improve the state of the environment. It takes only a short period of time to recycle and we feel that this product makes it a great deal easier for householders. This method hopefully will become part of everybody’s daily routine.
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2006 Student Awards / Galway-Mayo Institute of Technology2.3.9List of equipment
The equipment involved in the design, manufacture and market stages is comprised of:
Item no. / Equipment / Specifications / No. of devices / Price per deviceEUR
1. / Mould / According to the design / 3 / 10,000
2. / Arburg Allrounder M221-75-350
/ 35 tons/35mm injection unit (high wear-resistent and raised rotation speed), Ser.-No. 163470, 2 shifts, constructed 1995, complete without material funnel, standard without peripherals / 1 / 4,900
3. / Morris S3 hoist
/ Capacity 500 kg safe
3 m height of lift top hook / 1 / 850
Total cost of equipment: / 35,750
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2006 Student Awards / Galway-Mayo Institute of Technology2.3.10Employment
We will be providing a number of jobs in the local area. We want to ensure that these jobs will be well supervised and well trained. A company that works well together produces better products. It is easier to work in a friendly environment when everybody is working together as a whole unit. For the first two years we will be providing jobs for twelve operators and four supervisors and one job for the initial mould design. We want to try and ensure that the system will run as affectively as it possible can.