Donovan Ashley Moore Mba, Pmp

DOMOORE BUSINESS & TECHNICAL CONSULTING ‘COMPANY NAME’ METAL FABRICATION & WELDING COMPANY BUSINESSS PLAN SAMPLE SMALL – MEDIUM SIZE BUSINESS & MARKETING PLAN 2022 - 2024 COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 1 Table of Contents Executive Summary ............................................................................................................................ 2 Financial Highlights Business Name Goals Vision Statement Mission Statement Key to Success Description of Business Name Business ............................................................................................... 4 Proposed diversification of Production Activities Internal Business Factors Business Name Business existing Model Internal Business Improvement Strategy ............................................................................................. 6 Proposed Internal Business Environment Model Business Name Suppliers of Production Inputs Improvement in Production Processes Marketing Strategy............................................................................................................................. 8 Over-arching Competitive Philosophy Marketing Analysis SWOT Analysis for Business Name Business Environment Market Segmentation Competition – BUSINESS NAME Competitive Challenge Selected Competitive Players Method of Competitors’ Research Analysis of Competitors’ Pricing and Delivery Expected Outcomes.......................................................................................................................... 29 Appendices ...................................................................................................................................... 31 Appendix A – Work Process Mapping for Garbage Skips Appendix B – Staff Compliment for BUSINESS NAME Appendix C – Proposed Staff Compliment for Business Expansion Appendix D – Commercial Activities Diversification & Expansion of Trainees’ Integration Appendix E – BUSINESS NAME Production Capacity Limits (Based on 2016 – 2022 Production COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 2 Executive Summary This Business Plan commences with a highlight of the financial realities that has reflected annual financial losses for some years, and it continues into 2022/2023 fiscal year. Rather than assuming that such would be the case, the Business Plan proposes a set of steps that can transform the tide of loss, into harnessed reservoir of financial viability. The documentation, clearly demonstrates all the factors that have provided such sub-optimal performances, but also provides solid, pragmatic solutions that define the path to wider trainee integration and financial viability. There is no attempt to gloss over the internal conditions under which BUSINESS NAME exists. Any attempt to do this, does not only amount to questionable ethical values, but will invariably place Business Name quest for successful performance into serious compromise. This is the reason, the impact of the internal transactional dynamics, attitudes towards the subsidaryand its business, and even admittance to little or no marketing efforts, were so openly highlighted without any reservations. The document continues from an inward to an outward look, where ample information is provided for describing Business Name industry and marketing environment; realities which further compel the astute decision makers to pay keen attention to ALL the issues highlighted, and hopefully command some measure of respect in the confident fact that BUSINESS NAME team (if properly supported by the rest of PARENT COMPANY and by leaders within the wider entity), can be successful at making all concerned proud. This business plan is written in such a way, that any keen, motivated and qualified business practitioner, can absorb the templates, ideas and concepts, to make the plans contained therein a realized success. Financial Highlight – Revenue/Expenditure Projections 2022 - 2024 ‘BUSINESS NAME’ PROFIT/LOSS 2015 -/2016 2016/2017 YTD 2017/2018 PROJECTED 2018/2019 PROJECTED 2019/2020 PROJECTED 2020/2021 PROJECTED 2021/2022 REVENUE $4,900,191.14 $6,633,463.95 $3,405,796.00 $12,839,000.00 $16,048,750.00 $23,024,000.00 $27,628,800.00 EXPENDITURE $12,784,954.97 $17,294,339.99 $10,283,212.00 $23,021,720.31 $26,465,978.00 $26,995,297.56 $27,259,957.34 PROFIT/LOSS -$7,884,763.83 -$10,660,876.04 -$6,877,416.00 -$10,182,720.31 -$10,417,228.00 -$3,971,297.56 $368,842.66 NOTE: 2017-18 are actual figures YTD (Period) COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 3 Business Name Goals As the ‘Business Name’ removed due to confidentiality purposes has the following departmental goals: I. II. III. IV. Facilitate the integration of apprentices within the operation to enhance their technical skills and competences in a real-world occupational environment. Encourage resource sharing within the enterprise and institute to promote trainee’s integrated development of appropriate knowledge, skills and attitude required for the modern world of work. Provide 90% Customer Satisfaction as measured through repeat customers, referrals and surveys Achieve improved operational efficiencies, through enhanced production methods, cost management and revenue enhancement strategies. Vision Statement To position the ‘Business Name’ towards providing cutting edge core business classified, whilst generating viable levels of income for the institution. Mission Statement ‘Business Name’ aims to offer high quality core business for stakeholder classified, whilst providing excellent, durable products, and diversified engineering services to our residential, commercial and industrial clients COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 4 Keys to Success Business Name primary key to success is supported by the pursuit of two (sometimes competing) principles; (a) the maintenance of low production costs, and (b) the offering of durable, well-engineered products and services. In order to achieve this ambidextrous strategy BUSINESS NAME requires:  A supportive and responsive management and administrative framework at ‘Company Name’ institutional level  Cooperative Instructors willing to facilitate trainees’ involvement and learning by their actual presence in BUSINESS NAME activities  An expanded product/service offering represents item removed due to confidentiality requirements.  An Accounting/Procurement System, and personnel that values the bolstering of production efficiencies, and respects the demand of customers/clients for fast completion and delivery of work projects  A facilitated and approved Marketing strategy that embraces a mix of promotional strategies to include wide audience reach and targeted communications approach.  An efficient production process that can effectively match or surpass growth in demand that can be created by a robust marketing campaign. Description of Business Name Business Currently, Business Name core activities involves metal fabrication for sale to a limited number of customers. Funding is requested and approved for specific, identified jobs for which there are acceptable levels of deposit, or (in most cases) the provision of a purchase order by the customer. These fabricated items include Garbage Skips (the niche product), Lecture desk & chairs, and Garbage Bins. BUSINESS NAME is currently capable of producing other products such as flower pots, drawing tables, teacher’s desk, book shelves, garden/outdoor furniture, gates and grills, and certain basic household ornamental products. Additionally, BUSINESS NAME has proven capability in building 10 x10 Tents, 20x20 Tents and Gazebos, either for temporary or permanent applications. *Actual product identity may be changed for classified/confidential purposes not affect the intent of document production. Proposed diversification of Productive Activities As a part of the thrust to realize revenue growth for attaining initially neutrality, then, thereafter, surplus income generation, BUSINESS NAME must do the following:  Increase its production of garbage skips. There is a real capacity limit beyond which further expansion of volume for this item is not realistic, especially considering that 90% of Business Name machines/equipment are antique suitable for scrap metal disposal  Expand its production into household items tending away from single customer request to more batch (or even mass) production of select ornamental and utility household item, targeting mainly the employees of the merged entities and beyond. COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 5  Drive production (and sales) of 10 x 10 tent, gazebos, outdoor/garden furniture, gates and grills.  Make bold steps into Air Conditioning Services, Energy Audit Services and other possible service oriented offerings. This would require staffing, tools and resources that do not currently exist. This would offer further Training Integration for many other worker apprentices, who at present cannot be meaningfully engaged in BUSINESS NAME as its production activities are narrow and limited.  Revitalize offering item removed due to confidentiality requirements and others. The proposal for short course is not aimed at trainee integration, but rather in closing significant revenue gaps that BUSINESS NAME is constrained to meet, based on its nature in ‘Parent Company.’ Internal Business factors It is important to avoid glossing over the intricate internal details as these factors gravely affect the ability of a sub-entity like BUSINESS NAME to become viable. Firstly, the Manager role holds no authority for approval, nor even any administrative authorization – these have been delegated to Accounts or is retained at the more senior level (this subsidiary is a tall vertical structure within a classified frame). One prominent way in which this tends to manifest itself is that if a customer calls with agitation regarding an apparent delayed job, if it is a production delay, Business Name team is addressed openly. On the other hand, delays from accounting (eliminating those that are due to the restrictive procurement process typical of government entities), are sometimes given too little ascription of priority by such personnel, but these nonchalant treatments are ignored with impunity. Another example is that the Manager TBE, does not even hold the authority to sign out a job for delivery. BUSINESS NAME does not have access to workers in training unless they are scheduled, are accompanied by commanders and mandated to attend activities in BUSINESS NAME. In reality the apparent failure to engage apprentices even in nominal numbers is due to the fact that previous attempts have been premised mostly on the personnel voluntary inclination to attend. Business Name Business Model and the Need for Change Existing conditions of Business Name internal environment (within Parent Organization) Apparent support for low priority treatment of BUSINESS NAME Little or no priority given to Business Name productive needs Organizational Management ACCOUNTS *Little or no Marketing, Slow production *Clearly BUSINESS NAME Mgt. is responsible here, subject to approvals/support COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 BUSINES S NAME Demand for performance void of support Ideas shared (eg. Previous Business Plan) not supported/no alternatives Business Name resultant output: Limited product line diversity, long delays in delivering products 6 INTERNAL BUSINESS IMPROVEMENT STRATEGY Proposed Internal Business Environment Model PARENT CO. SNR LEADERSHIP (LEAD BY MANAGING DIRECTOR.) Much more integrated approach in trainee integration Improved management of procurement ACCOUNTS Greater collaboration to solve issues that diminishes the precipitation of parochial/silos interest Enhanced technical support from Training, and more enriched trainee’s immersion in Business Name activities Business Name Suppliers of Production Inputs The table below list the more prevalent suppliers of Business Name production input items: BUSINESS NAME SUPPIERLS' PROFILE SUPPLIER* NATURE PRODUCTION INPUT ITEMS RELATIONSHIP (coded) All skip Materials. Arc Welding offers cheaper prices. Recommended Sourcing of small hand tools/equipment. Specific brands of welding items Centrally managed by Accounts Dept Small Sourcing of small hand tools/equipment, especially special orders Both Accounts and BUSINESS NAME, latter having strong linkages Small Painrs, primers and finishing items Basic/Transactional Specialized Mat. Medium Painrs, primers and finishing items Basic/Transactional National Proirity Medium Sourcing of items for Welding parts BUSINESS NAME seeking to establish closer supplier relationship Tank Builders Major Delta force Major Delta force 2 Systems Hardware COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 Both Accounts and BUSINESS NAME has established linkages 7 Improvement in Production Processes Standardization of Production Processes With current production methods, precise material component dimensions, and existing availability of tools, it would take five working days to produce one 4.9 Cubic feet Garbage Skip. Therefore, if there was an order for ten (10) skips, it would take fifty (50) working days for production duration only. When the period for procurement is factored into the calculation, the time flow becomes unrealistic, as is evidenced in the production flow analysis that was done and submitted in Business Name Business Plan of 2016 – 2018. (Please see appendix for analyzed flow diagram/process for Garbage Skips). As shown below, production time commences only after procurement, and item delivery has been completed: GENERIC TIME BASED FLOWS FOR Business Name BUSINESS OPERATIONS STAGE A – QUOTATION Customer request quotation Customer request quotation BUSINESS NAME does estimate, submit to Accounts Within 1 working day Accounts sends Quotation to Customer Within 2 working days STAGE B – PROCUREMENT Customer Accepts, returns Deposit/Purchase Order Accounts notify BUSINESS NAME. BUSINESS NAME prepares material list Within 1 working (after customer’s response STAGE C – PRODUCTION & DELIVERY 1 to 5 working days (varies) Accounts orders materials from Supplier(s) 3 – 5 working days after material list is prepared Supplier delivers materials Production Commences Delivery made at completion Ideally, 5 working days after materials are ordered. (Typically > 1 month for skips) Dependent on Product type & Volumes. Eg. 1 skip take 5 working days 1 – 3 days after completion The records from administrative books would reveal, Stage B above contributes significant delays to the process, and at Stage C, limited flexibility and latitude exist in terms of tools/equipment, staffing and input resources. For example, if a tent is to be rented, it’s the single welder whose work is interrupted, to COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 8 attend to this with the assigned driver of the Parent firm. One pragmatic (but partial) solution is to widen quantities of buffer stock to six (6) instead of the inadequate allocation of materials enough to only build two (2) skips, and widen miscellaneous items, as well as buffers for other produced items as well. COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 9 Marketing Strategy The necessity of a well-planned Marketing Strategy, is clear. However, even with an effective market plan, the internal issues of support within Parent Company and pragmatic business structures must be catered to, in order to realize ‘Business Name’ success as a commercial entity, within the frame of a training institution, governed by government procurement processes and systems of operation. Over-arching Competitive Philosophy Business Name competitive premise, as alluded to earlier, is based on the dual foundations of Cost Leadership and the creation of durable products. Attainment of these two general goals, could make BUSINESS NAME a formidable force, assuming that other restraining factors are also addressed. Market Analysis Marketing analysis for BUSINESS NAME as a business entity will commence with a SWOT analysis that allows us to transition from the internal constraints to scrutinize the external market forces. COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 10 SWOT ANALYSIS FOR Business Name BUSINESS ENVIRONMENT STRENGTHS WEAKNESSES Experienced staff in metal fabrication Limited Institutional Support Time Lag in Procurement: (a) Policy related & (b) Low priority of BUSINESS NAME Competitive Pricing Quality Production in Garbage Skips Narrow focus on Metal Products Low Cost Production’ Obsolete machinery (Avg. 30 + years) Reasonable factory Space BUSINESS NAME OPPORTUNITIES THREATS Tap into internal staff market – Household products Welding and Fabrication Industry is perfectly competitive Diversify product offering + Services within PARENT COMPANY training portfolio Determine requirements for CNC activation and automate production, to reduce production time, and increase product creation capacity COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 Even relatively small firms have very stringent management yet flexible response BUSINESS NAME slow in delivery compared to similar small to medium type operations 11 Strengths of BUSINESS NAME 1. Experienced Staff in Metal Fabrication  BUSINESS NAME has technical staff trained and experienced in welding and metal fabrication. The aging team of resource personnel is at an average of 55 years. Job shadowing, internship and job rotation could help the institution in the short run to preserve the important skills sets. 2. Competitive Pricing  BUSINESS NAME is able to offer similar or superior products in metal fabrication, because of its controlled labour costs, as well as integration of trainees into its production activities 3. Quality Production in Garbage skips  Garbage skip has been the well-developed niche product of BUSINESS NAME 4. Low Cost Production  Business Name internal cost profiles are not extravagant Weaknesses of BUSINESS NAME 1. Limited institutional support  The institution continues to experience challenges with trainee integration, instructor’s support for Business Name production, and resource sharing. BUSINESS NAME is treated as sub-entity whose activities and purpose bears little relevance to the rest of PARENT COMPANY. Ideas to augment BUSINESS NAME growth and viability are not apparently believable nor supported. 2. Time Lag in Procurement  Whilst Parent Company, is governed classified data Procurement Policy Regulations, the other component of procurement delays is attributable to the low priority that is ascribed to Business Name business. 3. Narrow focus on Metal Products  There is a need for a senior management level supported plan to ‘organizational change’ into commercial activities. COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 12 4. Obsolete Machinery  The production machines in BUSINESS NAME workshop possess an average age of more than thirty (30) years old, and do not even closely represent the existing state of technology. Up to 95% of the machines do not serve any current purpose. Also, most of our production activities could be facilitated with an operational CNC machine, at a much faster production rate and cheaper operational cost. Opportunities within Business Name Business With the emergent existence of the merged entity, 1. BUSINESS NAME can design, standardize and produce Household products in two categories:  Ornamental – products with a decorative appeal such as wall plaques, lamp stands etc.  Utility – products that are useful for the home, such as garbage bins, grills for windows and doors, gates and outdoor furniture, to name a few. 2. Currently, only welding trainees and to a lesser extent mechanical trainees, can be meaningfully engaged in BUSINESS NAME. There is room for identifying and expanding Business Name offering of products/services, but this is impractical to achieve by merely expecting instructors and trainees to provide the work input. Steps that can expand value offering and involve greater percentage of trainees include:  Engage with short courses to offset the cost of its operation.  Offer technical services such as Energy Audit, Air Conditioning Services, and Computer Repairs by identifying tools and resources required and develop and mandatory schedule that involves both trainee participation and instructors’ support.  Implement the trouble shooting process and a project plan to bring the CNC Machine located in the BUSINESS NAME shop into operation. Based on initiative to explore such implementation, BUSINESS NAME management had observed that there were classified activity of the very expensive equipment. Hence steps have been taken to secure the machine, and initiate the project implementation process. The CNC is capable of producing far more sophisticated, aesthetically pleasing items at fractions of production time and cost, compared to current production methods. COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 13 Threats to Business Name Business A simple non-sophisticated survey of the businesses in private sector that offers similar products to BUSINESS NAME would reveal, that:  Small to medium sized entities are flexible, nimble, tightly run workshops that do not have to grapple with the idiosyncratic challenges of the Institutional frame in which BUSINESS NAME happens to exist. Simply stated, BUSINESS NAME would be a profitable business in less than one (1) year if it was lifted from its situational circumstances, howbeit the perfectly competitive external environment that it would have to face. This is the reason why time & motion/workflow was done on the most profitable of Business Name products. (See appendix).  There is the perception that BUSINESS NAME operates with improper planning, or poor leadership, or Business Name method of work is substandard Internal Production Reality If it takes two (2) technicians to build one (1) skip in 5 days, how many skips can they build in one (1) year? Now to truly answer that question one would have to account for the following: Absent days due to personal days/illness, vacation breaks, time spent to erect tents onsite and offsite, time spent to build other items etc. Note that no staff/contract personnel is authorized to work for the absent technician whilst he is on vacation, even if attempts are made to request replacement. Time and Motion Calculation Now Total skip produced in one month = 4 skips (20 days/5 days) And since there are 12 months in one (1) year, reduce the months available to ten (10) months (due to vacation and other mentioned legitimate factors above. This implies that: If four (4) skips are produced in 1 months, Then in ten (10) months, 40 skips will be produced. Hence, BUSINESS NAME has a capacity limit in which the business can only make under $12 million dollars per year, and under the existing conditions described earlier, even that amount of revenue would prove difficult to make. (Please see Appendix E for Business Name capacity limits in products and monetary values) COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 14 Market Segmentation The existing customers of BUSINESS NAME are categorized as shown below. Using the same classification, the second set of table and pie chart indicates the customer segmentation based on revenue intake. The initiation of an approved marketing and product awareness strategy would intentionally reflect the essence of this segmentation. This means that appropriate strategy would pertain to the respective customer type, as well as greater emphasis and resources would sensibly target the more lucrative segments. (Please see table on page 15 below, that illustrates this approach described here). CUSTOMER CATEGORY % OF TOTAL Individual (External) 13% Individual (Staff) 13% Other Parent Co subsidaries 42% Commercial Entities 10% Govt Agencies 10% Govt - Other (School, Depts.,) 13% COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 15 Agencies/Depts COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 Affiliated 16 Depts./Agencies Affiliated Competition – The peculiar dynamics of Business Name competitive challenge In a competitive landscape where there is relative ease of entry and a splintering of existing shops operating both formally and with varying degrees of informality, BUSINESS NAME faces competition from a plethora of welding shops scattered across various locations from inner city, industrial zones and sub-urban locales. Many of these entities themselves make products for specific businesses, and as such had taken steps to invest in technologies that are computer programmed based, and less manually intensive. At the same time BUSINESS NAME has remained frozen in the use of very manually oriented production methods, with the presence of archaic machines only standing as symbols of a past productive era in the 1980’s and before. Contrastingly, a CNC machine representing the possibility of technological innovation lies in a room that has a ceiling in a dilapidated condition – the CNC sitting there not engaged. This was cleaned and oiled in the midst of 2017, and the roof was also fixed by facilities upon highlighting that the machine was being wet by rain from the ceiling. The room has also been cleaned and prepared as part of the plan to get the machine operational. COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 17 To highlight the challenge that BUSINESS NAME would have to face to gain any semblance of a competitive edge, BUSINESS NAME had to hire truck to cut up sheet metals for garbage skips in Portmore HEART Academy, for nearly one year, as there were simply no machine functional to do it inhouse. A circular saw (far less efficient) was the alternative found to allow BUSINESS NAME to continue preparation of sheet metals for its most effective income generating product. When we consider that senior personnel of PARENT COMPANY would audaciously suggest that BUSINESS NAME technician should retained information of privacy purposes, when spray guns and a compressor knowingly works 10 times faster, BUSINESS NAME obviously faces a steeper competitive mountain than it would need to! Selected Competitive Players The table below shows selected list of competitors and their respective prices and promised delivery for two chosen items, namely skips (a big ticket item that is demanding to produce) and lecture chairs (a low revenue item that cannot be profitable without volume production through economies of scale). The choice of these contrasting items is a creative method of capturing a ‘snap-shot’ spectrum for other items, without the exhaustive need to research them individually. COMPANY NAME BUSINESSS PLAN - FEBRUARY 2022 18 IDENTIFIED COMPETITORS' PRICING & DELIVERY FOR SELECTED PRODUCTS UNIT # IDENTIFIED COMPETITION LOCATION classified SPECIALIZATION 1 Competitor 1 2 Competitor 2 3 Competitor 3 classified Metal Fabrication 4 Competitor 4 classified Fabrication, Construction 5 Competitor 5 6 Competitor 6 7 8 Competitor 7 Competitor 8 classified classified Fabrication, mechanical General welding works Fabrication, mechanical classified Welding & Fabricaton classified Welding & Fabricaton classified Fabrication, Construction classified 9 Competitor 9 10 Competitor 10 classified Welding & Fabricaton 11 Competitor 11 classified Welding & Fabricaton classified Fabrication, Construction 12 Competitor 12 GCT ALREADY INCLUDED Fabrication, Construction PRICE OF SKIPS PRICE OF SKIPS PROMISED (4.9 w/ Cover) (4.9 w/o cover) DELIVERY TIME 3 days for 1 $ 248,000.00 $ 225,000.00 unit 3 days for 1 $ 244,000.00 $ 218,400.00 unit 4 days for 1 $ 255,000.00 $ 234,000.00 unit 5 days for 1 $ 360,000.00 $ 300,000.00 unit 7 days for 1 $ 290,000.00 $ 242,500.00 unit 10 days for 1 $ 320,000.00 $ 298,000.00 unit 7 days for 1 $ 315,000.00 $ 295,000.00 unit 4 days for 1 $ 260,000.00 $ 240,000.00 unit 4 days for 1 $ 275,000.00 $ 250,000.00 unit 5 days for 1 $ 265,000.00 $ 235,000.00 unit 10 days for 1 $ 245,000.00 $ 220,000.00 unit 3 days for 1 $ 275,500.00 $ 245,000.00 unit Competitors' Avg Price for $ 279,375.00 $ Skip with cover Competitors' Avg Price for 4.9 Skip without cover Competitors' Avg Price for Lecture Chair Combo NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 250,241.67 PRiCE FOR LECTURE CHAIRS PROMISED DELIVERY TIME Not Applicable Not Applicable Not Applicable Not Applicable $ $ 3 weeks for 50 units 4 weeks for 50 9,500.00 units 7,800.00 Not Applicable Not Applicable $ 4 weeks for 50 units 6,800.00 Not Applicable Not Applicable $ 4 weeks for 50 units 6,500.00 Not Applicable $ $ 3 weeks for 50 units 2 weeks for 50 7,500.00 units 7,000.00 Not Applicable $ Not Applicable Not Applicable 7,516.67 18 Method of Competitors’ research Using a ghost shopper’s approach, the internet was used to research location and contacts for firms in the welding and fabrication industry. A total of thirty two (32) firms were listed as the initial sample. However only the twelve (12) listed claimed to do at least one of the item under consideration. These locations were called and/or visited with the shopper acting as a Property Officer interested in purchasing welded metal products. The results were tabulated as shown above on page 18. Analysis of Competitors’ Pricing and Delivery Although there is an apparent wide variation in the prices charged for Garbage Skips among the captured competitor’s pricing (from a minimum of $244,000.00 to $360,000 for skip with cover), the average prices charged was found to be $279,000.00 and $250,000.00 for a skip with and without cover, respectively. If we assume the average value to be a point of convergence, then it would be concluded that Business Name price is about 4% less than the average market price for a covered skip. Interestingly also, there is a wide disparity in delivery time promised. If one assumes the response of competitors as a fairly accurate claim of inherent ability to deliver, then at an average of 5.4 days for a Garbage Skip, BUSINESS NAME would seem to be on par with such projections. In reality however BUSINESS NAME takes a rather long period to deliver for various reasons already alluded to, in earlier parts of this document. Considering Lecture Desk/Chairs combo, BUSINESS NAME price of $6500.00 was found to be approximately 14% less than the average price, compared to market, for competitors surveyed. This product does not generate much profit unless it is packaged in volumes. Competitors claim (on average) that they would take three (3) weeks to do 50 chairs. Usually, BUSINESS NAME takes over a month to produce these, not consider procurement delays. Part of this is due to a greater priority placed on Skips and the non-mandatory flow of trainees without demonstrator or instructor’s support/presence. If BUSINESS NAME can maintain its competitive price edge (howbeit marginal in some cases) whilst differentiating on quality/durability and delivery, then BUSINESS NAME would be a clear winner in the market, with an effective market campaign. NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 19 Business Name PRICES ON 4.9 Cu Ft SKIPS (WITH & WITHOUT COVER) TYPE PRICE (NO GCT) [$] GCT AMOUNT [$] TOTAL PRICE [$] No Cover $ 180,000.00 $ 29,700.00 $ 209,700.00 With Cover $ 232,381.00 $ 38,343.97 $ 270,724.97 NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 20 Pricing Method & Structure of BUSINESS NAME Products The pricing method pursues cost recovery through inclusion of direct material costs for type and quantities of items used, as well as labour rate costing. Cost of labour is determined by use of labour rates as published by the Master Builders Association, per square feet/square meters measurement of work to be performed. Currently, indirect cost are not factored into the cost equation, as represented by overheads (utilities, salaries and miscellaneous items) required. A percentage mark-up is usually applied which varies from 20% to 40%, and this can be reduced by percentage discounts that are offered, for example, to HEART staff and/or institutions. General Price Mechanism/Structure For any given item that BUSINESS NAME produces, the price for that item may be represented by the equation shown: Material & Labour Cost = Material Cost/per quant. + Miscellaneous (5%) + Labour Cost Sub Total Cost = Material & Labour Cost + Mark-Up % (-Discounted Rate 20%)* Total Product Price = Sub Total Cost + GCT** * Discount Rate is applied to employees of HEART/merged entity **Government entities, to include HEART institutions are exempted from the GCT charges. GCT charges apply to all other customer categories. Revision of Prices The last price review, previous to the preparation of this business plan was done in 2015. There were no existing records of the Pricing Template used in BUSINESS NAME, but a copy of some of the product templates were obtained from Accounts. Due to competitive factors, BUSINESS NAME would need to proceed with caution in its attempt to recover from any inflationary increments that may be represented in its input cost profile for the past three (3) years. A collaborative approach is required, where driven by market data gathering done by BUSINESS NAME, both BUSINESS NAME and Accounts annually review prices charged for typically produced items. NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 21 Sample Pricing Template for a 4.9 Garbage skip with cover Using the general equation format that was provided earlier, the pricing template that shows the actual input cost and resultant surplus obtained from the items can be extracted. One should note that it is the direct production costs that are being compared here. By including only the direct production cost is a means of testing whether the production process (as a core function/activity) is monetarily efficient. An inclusion of indirect cost profiles, such as salaries, utilities and other miscellaneous would reveal the simple fact that the sum total of surplus simply fall short of offsetting these aggregated cost. Hence, the business logic of the need to (a) expand production quantities (b) diversify types of metal products (c) consider and implement other offerings/services that the institution should be able to deliver and (d) offset the cost of the business with complimentary offerings such as short courses. Whilst item (a) can be achieved by BUSINESS NAME through approved marketing efforts, ALL others require significant management support at the institutional level and beyond for BUSINESS NAME to actualize. Please see the sample costing template for the specified garbage skip below: NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 22 ‘COMPANY NAME’ COSTING TEMPLATE NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 23 Advertising and Promotion Using 2018 as a launch year Business Name leadership must conceptualize, communicate and seek funding, support and approvals for a robust advertising programme that can create awareness of its products, and communicate value to existing and potential customers. The promotional approach for considerations are as shown in the table below: PROPOSED ADVERTISING & PROMOTIONAL STRATEGY AND ASSOCIATED COST TO STIMULATE PRODUCT SALES PROMOTIONAL ITEM PRODUCT FOCUS COST PROFILES FOR PROMOTIONAL METHODS CUSTOMER SEGMENT SAMPLE/PROTOTYPE Product Bochure All items made (or can be made by BUSINESS NAME All customers Skips Educational Institutions/Min. of Lecture Chairs Parent Company Staff Parent Company Staff Parent Company Staff Municipalities Business Entities Parent Company Staff Promoters of Events/Functions Commercial entities/Residential Commercial entities/Residential Commercial entities/Residential BUSINESS NAME Exhibition Day To feature Product Value to Select 0 $0 $6,500 1 $6,500 Lamp Stands $7,500.00 1 $7,500 Wall Plague $5,700.00 1 $5,700 Garbage Bin (Residential) $15,500.00 2 $31,000 Garbage Bin (Commercial) Product Exist 2 Grills/Security Gates N/A Tent (10 x 10) N/A Book Shelf N/A Gazibos (Use letter of introduction for B2G initialization) Social Media Page Facebook 1 $2,500 $2,500.00 1 $2,500 Professional Photo Shoots $15,000.00 1 $15,000 Targeted Subsidaries Physical specimen of available products Commercial/Industrial Customers Gift Basket for Guest Speaker $7,000.00 N/A PA System, Podium N/A 1 $7,000 N/A $7,000.00 Design and Print inhouse 1 $7,000 Verified/identified needs for metal products N/A Call and visit customers at place of business - Cost covered in partial upkeep and N/A place of business - Cost covered in partial upkeep and fuel Garbage Skips & Bins Garbage Skips & Bins Schools & Hospitals Garbage Skips & Bins To establish online presence All Customer categories place of business - Cost covered in partial upkeep and fuel Call and visit customers at place of business - Cost covered in partial upkeep and N/A N/A *Only minimal incidentals Printing of Brochure to (if any) and printing show customers Subsidaries Yellow Page Advertisin Wider Customer base All Customer categories Marketing had previously sent personnel and photographer to capture trainees and staff to feature in printed yello page Event capture $0 Plaza, Restaurants & other commercial entities Intranet Advertising Use visible sample + Photo in brochure Use visible sample + Photo in brochure Vist Stoney Hill Academcy & capture photos Visit Ebony Park & capture photos To capture image of listed products or brochure Use existing items and support from Staff Use existing items and support from Staff All customers: Parish Councils Use visible sample + Photo in brochure Use visible sample + Photo in brochure Use visible sample + Photo in brochure Use visible sample + Photo in brochure Use visible sample + Spray over for exhibition day $0 Decorations introduction for B2B relationship initialization) (Use letter of introduction for B2B relationship Carry approved Brochure to show customers A visit of https://www.findyello.co m/Jamaica/Government /Welding online would reveal no listed metal product manufacturer $2,500.00 Outdoor Furniture Subsidaries Use photos in Brochure Use photos in Brochure BROCHURE Photographer To target potential customers for increased MEDIA OPTION(S) No. Of SAMPLES TOTAL COST (J$) 0 Programme event sheet Direct Selling UNIT COST $9,000.00 1 $9,000.00 Develop facebook page through approval and collaboration with Marketing & Engage Marketing & Communications for approval & support N/A Household Products, Outdoor furniture * Estimated cost here (Previous photos professionally taken could be used, to offset current costs) N/A $35,000.00 1 Total Promotional Cost in Lauch Year 2018 NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 $35,000.00 Use of full page or even half page advertisement in printed yellow pages $128,700 24 Implementation of Business Name Marketing & Business Strategies The three-year plan would commence in 2022 and culminating results must be manifested in 2022 to 2023. The plan is represented in diagram format to show the important elements: IMPLEMENTATION OF ADVERTSING & PROMOTIONAL COMPONENTS FOR BUSINESS NAME PRODUCT OFFERINGS TARGETED CUSTOMERS COMMERCIAL/ PRODUCT FOCUS STRATEGY ORANMENTAL & UTILITY DOMESTIC Intranet, Facebook, Exhibition Day, Brochure GARBAGE SKIPS/ COMMERCIAL DESK/CHAIRS/ CLASS ROOM ITEMS PARISH COUNCILS GARBAGE SKIPS/ B2B: Facebook, Brochure Calls/Site Visits, Invitation to Events Facebook, Brochure Calls/Site Visits B2G: Facebook, Brochure Calls, Letter of Introduction NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 IMPLEMENTATION March – April 2018 (2 months) (1 months), ongoing May to July 2018 (3 months) May to July 2018 (3 months) 25 Steps to Implementation of Business Name Marketing Plan The turn around and success of BUSINESS NAME as a viable business hinges heavily on addressing all the internal challenges mentioned previously, but especially on the effective implementation of a sound Marketing Plan for the business. Whilst it is true that the Manager ‘Company Name is responsible for the implementation of the plan, the plan is likely to fail without meaningful support and approvals. This support would have to be derived from the Parent Company Management to include the ‘listed senior executives’ of the PARENT COMPANY, Accountant/Accounts Department, as well as key corporate roles - Marketing Department, and possibly the Finance Department. The word ‘support’ encompasses the conscientious and enabling actions of all these persons, whose actions and approvals affects the outcome. Hence, to communicate clearly on the collective enabling actions needed an outline of steps is tabulated here: ACTIONS REQUIRED FOR BUSINESS NAME MARKETING & PROMOTIONAL IMPLEMENTATION ACTIVITY PERSONNEL RESPONSIBLE 1 Propose overarching Market Strategy Manager Co. Name Principal/Director, Marketing Dept Jan. 01 - Feb. 16, 2022 2 Review Proposal Managing Director Marketing Dept, Manager TBE Feb 17 - 20, 2022 3 Modification of Market Plan Principal/Director, Marketing Dept, Feb 21 - 23, 2022 4 Initiate procurement of items for promotional activities 5 Procurement of Items/Approval Accounts Dept. 6 Commence Production of Specimen Items 7 SEQ # Manager Company name TARGET RECIPIENT(s) SCHEDULE/DURATION Manager Co. Name, Accounts Dept Secretary BUSINESS NAME, Prod Supervis COMMENTS Must show Market focus, segmentation, cost and communication media/channel. (This is part of business plan) Response must outline aspects accepted/not accepted, preferably with reason/alternative instructions Communication and feedback preferably in writing that modified plan is approved with instructions to implement Feb 26 - 28, 2022 Acconts obtain approval of items and source, and arrange delivery Accounts Dept/Principal Director March 01 - 02, 2022 Accounts keeps personnel abreast of puchased items, to aid production plans Manager BUSINESS NAME team Primcipal/Director, Accounts, Marketing March 05 - 16, 2022 Arrange photo shoots for Brochure Manager , Marketing Principal Director/Head of Marketing March 19 - 21. 2022 Best facilitated through a conference call/action meeting 8 Plan Business Name Exhibition Day Manager BUSINESS NAME team ALL March 22 - 23, 2022 Best done collaboratively with a broad based support, amd planned as a major event 9 Execute Exibition Day ALL Select Business Customers, Cust Groups etc April or May 2022 Timing to be decided based on consultation and advice 10 Execute Direct Selling using approved Brochure Manager Co. Name Customer Segments April 2022- ongoing Use of approved supporting communication tools with coordinated themes, concept and ideas 11 Design and Launch Intranet, facebook platforms Manager Co Name/Marketing Customer Segments May 2022 - on going Involvement and approval of Marketing and Communication experts critical here 12 Seek approval for Yellow Page Promotional Manager Co Name/Marketing Accounts/Finance June 2022 - on going Wider audience reach…. Manager TBE/Secretary BUSINESS NAME informs persons of completed specifmen for display/photo shoot This is intended to serve as a guide showing a possible sequence of steps as to how the Mark eting plan for BUSINESS NAME can be implemented. NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 26 Implementation Plan for diversification of Metal Product lines Again, the outline of an implementation path is documented to communicate commonality of understanding, and to further enhance the probability of actualization. This is represented in diagram form for ease of assimilation: IMPLEMENTATION STEPS FOR INTRODUCING NEW METAL PRODUCTS TO EXISTING AND EXPANDED MARKET Identify Items made (or can be) by BUSINESS NAME Draft Brochure and Market Plan (develop initial concept) Display: Cost & Get approvals for making items Design and build Specimen Execute coordinated Marketing on New Metal Products – Direct Selling, Intranet Ads, Facebook Evaluate Market response, trends/projections Use of common themes to keep promoted message consistent to relevant segment NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 Photo shoots, Brochure, Exhibition Create ‘jig’ for standardized production See marketing plan on page 21 above This is like creating a mold or form to speed up production to match increased demand 27 Implementation Plan for bringing CNC Machine online Use of CNC machine as a technological productive tool, can potentially transform BUSINESS NAME from being one of the most dormant sub-entity to one of the most dominant, revenue producing business entities within Parent Company portfolio. However, the transformative potential is not only about income. It is the kind of transformation to move the organization into where it ought to be for the 21st century. Here is a synopsis of how various facets of the organnization groups can tremendously benefit:  Mechanical Instructors and trainees learning how to use design tools (such as Auto Cad) that can be interfaced with the machine to execute designs  Computer Technicians learning how to write basic codes that can be programmed into the machine to produce creative designs  Renewable Energy Technicians (assisted and guided by Instructors), pursuing a project to design alternative energy source(s) compatible with per phase/single phase demand profiles to help offset energy consumption of CNC and other high consumption loads/equipment  Electrical Technicians working in tandem with Renewable (and guided by Instructors) to design circuits for accommodating usage of energy.  All Technicians– Pre-dominantly young population of developing technicians make them amenable to technological and computer based training. It is the way of the present and of the future, so virtually all trainees can potentially benefit from CNC knowledge/skills exposure, in the production factory. Based on the obvious importance of the CNC activation plan, a comprehensive high level early project outline has been prepared, with major phases/project milestones, activities, personnel (both initiating and facilitating), estimated timelines, and a comments column that seeks to add clarity to conceived ideas that will propel each stage. One should note that, as is typical in many project management approaches, it is very likely that some of these activities/tasks with associated elements, may be modified through Progressive Elaboration. This simply means that room for adjustments, collaboration, consultation flexibility and openness must be accommodated. Please see this outlined template on next page. NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 28 BUSINESS NAME COMPUTER NUMERICAL CONTROL (CNC) MACHINE ACTIVATION HIGH LEVEL PROJECT OUTLINE SEQ # 1 MAJOR PROJECT PHASES Project Initiation PERSONNEL/DEPARTMENT ACTIVITIES INITIATING PERSON Clean-up and oiling of CNC Machine Manager /Mechanical Instructor APPROVING/FACILITATING PERSON Not Applicable STATUS TIME LINE/SCHEDULE CLARIFICATION OF IDEAS 100% completed Machine was wet and bed showed slight rust due to prolonged roof leak 2 Repair Roof Maintenance Facilities Manager Supv/ managing Director 100% completed Roof was repaired 3 Contact Manufacturer Manager 100% completed Contact initiated, via website and email correspondence. This necessary consultative arrangement is likely to require approval and funding later 4 Repair Ceiling Maintenance Facilities Manager Supv/Managing Director 0% completed Feb 01 - March 31, 2022 Ceiling near CNC machine has a hole. 5 Verification of Electrical Supply Maintenance Not Applicable Supv/Electrical Instructor 100% completed Feb 01 - March 31, 2022 6 Test start machine 7 AC Unit Replacement/Repair 8 Visitation of Local CNC Expert for verifying CNC Production Supv current functionality status Not Applicable Manager Co. Name 10 Do initial costing projections Do Cost to benefit analysis 11 Work out Payback period Manager 12 Submit Project Cost Report for approval Manager Determine Operational Needs Gaps Manager TBE/Mechanical Instructor 9 13 Rationalization of Projected Costs AC , Mtce Supervisor Solidying Project Dimensions Manager Manager 14 Refine Costs requirements Manager 15 Identify Accessories for machine Manager /Mechanical Instructor Not Applicable 100% completed Principal Director 100% completed Manager Managing Director 25% completed Managing Director, Director Finance Managing Director, Director Finance Managing Director, Director Finance Managing Director, Director Finance Snr. Snr. Snr. Snr. 0% completed 0% completed 0% completed 0% completed Managing Director, Snr. Director Finance 0% completed Managing Director, Snr. Director Finance 0% completed Managing Director, Snr. Director Finance 0% completed NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 Kindly note that this is not an electrical repair, it merely testing using instruments to verify supply parameters. If corrections needed approval will be obtained Test start will be done only if electrical parameters Feb 01 - March 31, 2022 are acceptable. Values already verified from nameplate and Manufacturer The internal computer, and circuit board need a Feb 01 - March 31, 2022 clean and cool environment for optimal operation and preservation of useful functionality After required power supply was confirmed, Mr. Reid was contacted, machine was switched on, and Feb 01 - March 31, 2022 status checks conducted. Machine needs pneumatic compression. Test operation to continue To show decision makers the funding required to March 01 - 31. 2022 undertaken initiative To show decision makers how the benefits March 01 - 31, 2022 (monetized) outweigh the finacial costs To show decision makers the period it takes to March 01 - 31, 2022 recover cost, providing full implementation is done Use of approved supporting communication tools March 23 - 30, 2022 with coordinated themes, concept and ideas This is envisioned as a collaborative/consultative April 01 - 15, 2022 process with the manufacturing firm based in the USA This is optional, assuming that there were factors April 15 - 20, 2022 not captured April 21 - 30, 2022 To be done with technical support for CNC manufacturer 29 SEQ # 7 MAJOR PROJECT PHASES PERSONNEL/DEPARTMENT ACTIVITIES INITIATING PERSON Rationalization of Do initial costing Projected Costs projections APPROVING/FACILITATING PERSON STATUS TIME LINE/SCHEDULE CLARIFICATION OF IDEAS Manager Principal/Director, Snr. Director Finance 0% March 01 - 31. 2022 completed To show decision makers the funding required to undertaken initiative 8 Do Cost to benefit analysis Manager Principal/Director, Snr. Director Finance 0% March 01 - 31, 2022 completed To show decision makers how the benefits (monetized) outweigh the financial costs 9 Work out Payback period Manager Principal/Director, Snr. Director Finance 0% March 01 - 31, 2022 completed To show decision makers the period it takes to recover cost, providing full implementation is done 10 Submit Project Cost Report for approval Principal/Director, Snr. Director Finance 0% March 23 - 30, 2022 completed Use of approved supporting communication tools with coordinated themes, concept and ideas Principal/Director, Snr. Director Finance 0% April 01 - 15, 2022 completed This is envisioned as a collaborative/consultative process with the manufacturing firm based in the USA Principal/Director, Snr. Director Finance 0% April 15 - 20, 2022 completed This is optional, assuming that there were factors not captured Principal/Director, Snr. Director Finance 0% April 21 - 30, 2022 completed To be done with technical support for CNC manufacturer Principal/Director, Snr. Director Finance 0% April 21 - 30, 2023 completed To be done with technical support for CNC manufacturer Principal/Director, Snr. Director Finance 0% May 01 - 30, 2023 completed To be done with technical support for CNC manufacturer Principal/Director, Snr. Director Finance 0% June 01 - 15, 2023 completed It is critical that the right instructional/technical and leadership personnel are selected 11 Solidying Project Dimensions Determine Operational Needs Gaps Manager Manager /Mechanical Eng 12 Refine Costs requirements Manager T 13 Identify Accessories for machine 14 Indicate software update needs 15 Devlop Training Needs Analysis 16 Identify Personnel for Training Manager /Mechanical Eng Manager /Mechanical Eng Manager /Mechanical Eng Manager /Mechanical Eng NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 30 SEQ # 17 18 19 20 21 22 23 24 MAJOR PROJECT PHASES Strengthening Human Tech. Capacity PERSONNEL/DEPARTMENT ACTIVITIES INITIATING PERSON APPROVING/FACILITATING PERSON STATUS TIME LINE/SCHEDULE CLARIFICATION OF IDEAS Verify Training arrangements Manager Principal/Director, Snr. Director Finance 0% June 16 - 25, 2023 completed Subject to cost, and other constraints, decisions required as to have personnel travel to USA, or have trainers visit locally Approve Training requirements Manager Principal/Director, Snr. Director Finance 0% June 25 - 31, 2023 completed Confirmation of all important details of Personnel CNC training Principal/Director, Snr. Director Finance Principal/Director, Snr. Director Finance 0% July 01 -31, 2023 completed 0% Aug. 01 - 10, 2023 completed Carry out training programme facilitated by experts from manufacturing firms Principal/Director It is anticipated that once the CNC is made 0% Aug. 01 - Sept 30, 2023 operational it will open up new business completed possibilities Principal/Director 0% Sept 01 - 30, 2023 completed Legal Dept is likely to get involved to guide this process Principal/Director 0% Sept 20 - 30, 2023 completed Decision on production profit per unit cost of produced items Principal/Director 0% Sept 01 - 30, 2023 completed To be done in collaboration with Heads of Dept Execute Training Programme Evaluate Training Programme Integrate CNC Ops Seek/invite Business in TBE & PARENT Partnership for production COMPANY Training Engage Contractual Supplies/Client Relationships (B2B) Develop costing, Pricing & Margins for Items produced Integrate CNC knowledge/Skills in PARENT COMPANY's offering Manager Manager Manager TBE/Deputy Manager Manager Manager /Accountant Manager, PARENT COMPANY Collaboratively define evaluation criteria 25 Institute security, access Mtce. Supv., Manager, and control to CNC Room Deputy Manager Principal/Director 0% Oct. 01 - 15, 2023 completed To be done in collaboration with PARENT COMPANY Snr. Leadrrship team 26 Run approved production Items on CNC Machine Principal/Director 0% November 01 onwards completed This defines full project delivery and operationalization Manager NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 31 Expected Outcomes The ultimate expectation of this Business Plan and Marketing Strategy is to realize the transformation of BUSINESS NAME, PARENT COMPANY’s TBE into a viable business, capable of facilitating trainees’ development. From a financial premise, the position of income/expenditure neutrality, and eventually, generation of surplus revenue, will be achieved by taking the necessary steps as summarized here: On the basis of the first three summarized steps, it is projected that a marginal surplus would be achieved by fiscal year 2022/2023, but this is not to say that earlier realization cannot be realized dependent on Institutional Management and HEART Trust’s leadership commitment to supporting the development of BUSINESS NAME. The graphical representation below indicates the income and expenditure levels that will enable marginal profits by 2023. Please note however, that revenue generation of CNC production activities were not factored into the revenue projections 2023 onwards, as CNC operationalization requires a detailed set of activities and resource approvals which may be significant. NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 31 NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 32 Appendices Appendix A – Work Process Mapping for Garbage Skips WORK FLOW PROCESS FOR ‘BUSINESS NAME’ TO EVALUATE PRODUCTIVE CAPACITY NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 33 Appendix B - Staff Compliment for BUSINESS NAME Job Titles Employees Production Metal Receptionist Manager Welder Supervisor Machinist /Secretary Golding Jeremiah Clarke Michael Pinock Gledon Blake Ann-Marie Brown Denton      Appendix C – Proposed Staff Compliment for Business Name Business Expansion Job Titles Employees Golding Jeremiah Davidson Michael Pinock Glendon New Position 1 Renewable Production Metal Welder Supervisor Machinist Energy Tech AC Tech Receptionist Manager /Secretary     New Position 2 Blake Ann-Marie Brown Denton NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018    34 Appendix D – Commercial Activities diversification and Expansion of Trainee Integration SOLUTIONS TO DIVERSIFY COMMERCIAL ACTIVITIES AND INTERGRATE LARGER POOL OF APPRENTICES IN PARENT COMPANY VOCATIONAL AREA Air Conditioning & Refrigeration PROPOSED PRODUCT/SERVICE AC Service & Repairs RESORUCE REQUIREMENTS STAFF 1 x AC Tech EQUIPMENT/TOOL COST ($) Tube Cutter $ 1,500.00 Flaring Tool $ 1,700.00 Swagging Tool $ 2,550.00 Brazing Torch $ 2,950.00 Copper Tube Bender $ 4,500.00 Hand Tools: Adjustable wrench, Flat edge Screw Driver, Phllip Screw Driver, Allen Wrench, Long Nose Pliers, Slip joint pliers, Electric pliers, Electric Tape $ 13,750.00 Files: Flat, Round, Half Round $ 3,600.00 Socket Wrench Set $ 6,500.00 Electric Drill $ 8,000.00 Bench Vice $ 8,000.00 Saws: Carpenter's Saw, Hack Saw $ 3,600.00 Guage Manifold $ 6,000.00 TOTAL FOR AC REPAIRS NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 $ SUMMARY OF COMMERCIAL STRATEGY TRAINEE INTEGRATION PLAN Service of all AC units in Cluster. Expand to Service AC in corporate area In collaboration with HOD/Instructors, schedule mandatory trainee groups of 4 - 6 trainees to match service schedule 62,650.00 35 SOLUTIONS TO DIVERSIFY COMMERCIAL ACTIVITIES AND INTERGRATE LARGER POOL OF APPRENTICES IN PARENT COMPANY (Continued) RESORUCE REQUIREMENTS VOCATIONAL AREA PROPOSED PRODUCT/SERVICE STAFF Computer Repairs Desk Top & Lap Top Servicing & Repairs Engage Existing Personnel EQUIPMENT/TOOL 3in1 SiBusiness Nameh Laptop Mini PCI- E PC PCI Diagnostic Test Tester Debug Post Card +LPC COST ($) SUMMARY OF COMMERCIAL STRATEGY $ Organize secured item 2,191.71 collections logging and tracking system for clients machines 100 Piece Computer Technician Tool Kit for Repairing, Wiring, Cleaning, and Testing $ 6,411.30 Cordless Screwdriver $ 15,963.75 Anti-Static Mats $ 2,128.50 Reflow Oven (Infra-red IC Heater) $ 22,243.47 Laptop Notebook Memory Slot DDR2, 3, 4 Test Card SO-UDIMM out LED Tester Test Card $ 2,191.71 Fault Detector and Oscilloscope 9 Functions in 1 $ 225,750.00 TOTAL FOR COMPUTER REPAIR NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 $ TRAINEE INTEGRATION PLAN Organize/schedule trainees to assist with repairs on close supervision of demonstrator & instructors 276,880.44 36 SOLUTIONS TO DIVERSIFY COMMERCIAL ACTIVITIES AND INTERGRATE LARGER POOL OF APPRENTICES IN PARENT COMPANY (Continued) VOCATIONAL AREA Renewable Energy PROPOSED PRODUCT/SERVICE Energy Audit & Energy Solution improvement RESORUCE REQUIREMENTS STAFF 1 X Renewable Energy Tech EQUIPMENT/TOOL COST ($) 3 phase power analyzier Fluke 430 Series Three-phase $ Power Quality Analyzers $ 3,934.50 Infared Thermal Camara $ 193,500.00 RETScreen Energy Moduling Sofware $ 224,434.20 Data Loggers (Current, Temperature & Humidity) $ 2,191.71 Lux meter $ 1,355.79 NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 $ TRAINEE INTEGRATION PLAN Target commercial and industrial facility to offer energy Engage Renewable energy trainees profiling of facility at a cost. 367,650.00 in both audit and solutions Use analysis to make implementation stages recommendations. Cost/implement solutions 1 phase power analyzier Kill A Watt - P3 (Modle:P-/240 volts / 50Hz TOTAL FOR RENEWABLE ENERGY SUMMARY OF COMMERCIAL STRATEGY 793,066.20 37 Appendix E – Business Name Production Capacity Limits (Based on 2022 – 2024 Production Review) Production Item Quantity Total Revenue ($) Remarks Garbage Skips (no cover) 40 $8,388,000.00 BUSINESS NAME can make a slightly greater quantity by rejecting other jobs Garbage Skips (with cover) 10 $2,707,249.70 Lecture Chairs 100 $650,000.00 Garbage Bins 12 $180,000.00 Highest product value made by BUSINESS NAME If w e assume that the other quantities hold as show n, then BUSINESS NAME w ould have to outsource 150 lecture Chairs if 250 is required This means that if BUSINESS NAME produces the first three (3) set of items, it can only make a product(s) valuing less than $200,000.00 $11,925,249.70 Limits of Business Name Production Capacity in Monetary Value EXISTING PRODUCTION CAPACITY AS REPRESENTED IN REVENUE ANNUAL REVENUE FLOWS NOTES : This is a projected representation of Business Name current production capacity limits. The items and quantity can always be varied, but BUSINESS NAME currently can ONLY mak e about $12 million dollars per annum, based on existing staff, types of equipment available and technologies used NATIONAL TOOLS & ENGINEERING COMPANY BUSINESSS PLAN - FEBRUARY 2018 38