ENT600

TECHNOLOGY BLUEPRINT REPORT

SCULLERY APPLIANCES.CO

“MULTIPURPOSE SCISSORS”

Lecturer’s Name : Adlan Bakri

Programme : EH220

Group : EH2207G

Name ID
Emalyn Damyra Idza Azizul Izham 2016250026
Nur Alia Syafieqa Mohd Yuslan 2016238886
Nur Fatihah Abdul Rahman 2016249808
Nurul Nadiah Mohd Yusof Zaki 2016249794
Contents
EXECUTIVE SUMMARY ........................................................................................................ i
SCULLERY APPLIANCES COMPANY................................................................................. 1
1.0 PRODUCT DESCRIPTION ................................................................................................ 1
2.0 TECHNOLOGY DESCRIPTION ....................................................................................... 2
2.1 RAW MATERIALS ............................................................................................................ 2
2.2 THE MANUFACTURING PROCESS ............................................................................... 3
2.2.1 MAKING THE BLANKS ................................................................................................. 3
2.2.2 PROCESSING THE BLANKS ......................................................................................... 3
2.2.3 GRINDING AND POLISHING ........................................................................................ 4
2.2.4 MAKING THE HANDLES ............................................................................................... 4
2.2.5 ASSEMBLING THE SCISSORS ...................................................................................... 4
2.3 QUALITY CONTROL ........................................................................................................ 4
3.0 MARKET RESEARCH & ANALYSIS .............................................................................. 6
3.1 CUSTOMERS...................................................................................................................... 6
3.2 MARKET SIZE AND TRENDS ......................................................................................... 6
3.2.1 Price calculation ................................................................................................................. 6
The 3 years of the current total market ...................................................................................... 6
3.3 COMPETITION .................................................................................................................. 8
3.3.1 Comparison between other competitors............................................................................ 8
3.4 MARKET SHARE AND SALES ........................................................................................ 9
3.5 MARKET STRATEGY ..................................................................................................... 10
3.5.2 Advertising and promotion ............................................................................................. 10
4.0 MANAGEMENT TEAM .................................................................................................. 11
4.1 ORGANIZATION CHART............................................................................................... 11
4.2 Key Management Personal ................................................................................................ 12
4.3 Management Compensation and Ownership ..................................................................... 12
4.4 Supporting Professional Advisors and Services ................................................................ 12
5.0 FINANCIAL PLAN........................................................................................................... 13
5.1 Start-up cost ....................................................................................................................... 13
5.2 Working capital .................................................................................................................. 14
5.3 Cost of component per prototype ....................................................................................... 15
6.0 PROJECT MILESTONES ................................................................................................. 16
7.0 CONCLUSION .................................................................................................................. 17
List of Tables
Table 1: Comparison between other competitors ........................................................................... 8
Table 2: One time start-up cost ..................................................................................................... 13
Table 3: Months expenses (4 months ) ......................................................................................... 14
Table 4: Cost of component .......................................................................................................... 15

List of Figures
Figure 1: The Dimensions of the Multipurpose Scissors ................................................................ 2
EXECUTIVE SUMMARY
Scullery Appliances.co is introducing a new scissor with the invention and idea of
multipurpose. A multipurpose scissor is introduced to ease the work of labour in the kitchen spent
by housewives and people who lives alone. This scissor comes with a detachable blade that hence
fulfils the idea of multipurpose as different blade comes with different uses. A normal blade shows
the use of common scissor while the serrated blade is the multipurpose scissor being introduced.
This multipurpose scissor comes with the function of descaling fishes, to cut through hard shells,
comes with a bottle opener and may act as knife too when detached. The advantages of the scissor
is it save space, cost, time and easy to use.

Together in this report marketing aspects is included regarding the price, expected market
growth, target customer as well the marketing strategy. This is to ensure that our product is eligible
and valid to be in the current market despite fierce competition.

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SCULLERY APPLIANCES COMPANY
Scullery Appliances.co establish as of 2019 with the motto of ‘We make it, You
use it’ where it defines that we will produce the products for our customers’ needs. The
company consists of four (4) head of department that is the Chief Executive Officer (CEO),
Marketing Director, Human Resource Director and Financial Director.

Our company focuses on producing and making products for home appliances
especially for kitchen uses. This time we are introducing a new multipurpose scissor. The
key features of this product are a scissor with detachable blade, own multipurpose of
function, safe space and compact design.

1.0 PRODUCT DESCRIPTION

Scissor is used when cutting or wanting to separate into two pieces of an item.
Scissor are cutting instruments consisting of a pair of metal blades connected in such a way
that the blades meet and cut materials placed between them when the handles are brought
together. The word shears is used to describe larger instruments of the same kind. As a
general rule, scissors have blades less than 6 in (15 cm) long and usually have handles with
finger holes of the same size. Shears have blades longer than 6 in (15 cm) and often have
one small handle with a hole that fits the thumb and one large handle with a hole that will
fit two or more fingers.

The multiple scissor is designed for multipurpose use and to make it easy for
everyone to use it. The multiple scissor consists of fish scaler, kitchen knife, bottle opener,
nut cracker and crab crusher. It is a detachable scissors so it can also function as a scissors.
The kitchen knife and the scissor blade is made up of stainless steel that can stay sharp or
it can be sharpened with a whetstone. Stainless steel blade also is chosen because the
material has a higher tendency to resist rust. Since this scissor is dealing with water a lot
where water is the first enemy when it comes to rust, thus it is essential to choose a material
that can resist rust. Stainless steel also is a material that is easy to clean after use it.
The 8 inches long scissor consists of 3 inches of the blade and 4.3 inches of the
comfortable handle. The fish scaler is built with a jagged stripping blade that lifts the scale
and then remove it as it is moved over the scales joined to the skin. The kitchen knife can
be used to slice meat or chopping smaller vegetables. The nut cracker is designed to be
adaptable to the cracking requirements of some number of nuts, where the shell can be
processed to brittleness.

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 Figure 1: The Dimensions of the Multipurpose Scissors

2.0 TECHNOLOGY DESCRIPTION

2.1 RAW MATERIALS

Scissors are usually made of steel. Some scissors used for special purposes are
made from other metal alloys. Scissors used to cut cordite (an explosive substance
resembling twine) must not produce sparks. Scissors used to cut magnetic tape must not
interfere with magnetism.

Steel scissors exist in two basic forms. Carbon steel is used to make scissors in
which the blade and the handle form one continuous piece. Carbon steel is manufactured
from iron and about 1% carbon. It has the advantages of being strong and staying sharp.
Scissors made from carbon steel are usually plated with nickel or chromium to prevent
them from rusting.

Stainless steel is used to make scissors in which a plastic handle is fitted to the
metal blade. Stainless steel is manufactured from iron, about 1% carbon, and at least 10%
chromium. It has the advantages of being light and rustproof. The handles of stainless
steel scissors are made from a strong, light substance such as ABS (acrylonitrile-butadiene-
styrene) plastic.

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2.2 THE MANUFACTURING PROCESS
2.2.1 MAKING THE BLANKS
● 1 Before they are sharpened and attached, the two halves of a pair of scissors are
known as blanks. A blank may consist of a blade and a handle in one piece or it
may consist of only the blade. In the latter case, a metal handle will be welded to
the blade or a plastic handle will be attached to it.

● 2 Inexpensive scissors may be made from blanks formed by cold stamping. In this
process, a sharp die in the shape of the blank is stamped into a sheet of unheated
steel. The die cuts through the steel to form the blank.

● 3 Blanks may also be made by molding. O Molten steel is poured into a mold in the
shape of the blank. The steel cools back into a solid and the blank is removed.

● 4 Most quality scissors are made from blanks formed by drop forging. Like cold
stamping, this process involves shaping the blanks with a die. This die, known as a
drop hammer, pounds into a bar of red-hot steel to form the blank. The pressure of
the drop hammer also strengthens the steel.

2.2.2 PROCESSING THE BLANKS

● 5 The blanks are trimmed to the proper shape by cutting away excess metal. A hole
is drilled through the blank. This hole will later allow two completed blades to be
attached to each other.

● 6 The trimmed blanks are hardened by heating them, then cooling them quickly in
cold air, water, oil, or another substance. The temperature to which they are heated
and the medium in which they are cooled varies depending on the type of steel from
which they are made and the desired characteristics of the blade.

● 7 The hardened blanks are heated again and allowed to cool slowly in air. This
second heating, known as tempering, gives the blank a uniform hardness. If the
blades of a pair of scissors did not have uniform hardness, the harder places on one
blade would soon wear out the softer places on the other blade.

● 8 The repeated heating and cooling causes the blanks to warp. They are straightened
by being placed on an anvil and lightly tapped with a hammer. This process is
known as peening.

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2.2.3 GRINDING AND POLISHING
● 9 The blank is ground into a blade by applying the edge to a rapidly moving sanding
belt or abrasive wheel. The surface of the belt or wheel is covered with small
particles of an abrasive substance and works in the same way as sandpaper. The
hard abrasive grinds away enough steel to form a sharp edge. During this process,
the blade is cooled with water or various liquids known as cutting fluids to prevent
it from heating and warping. The sharpened blade is then polished in a similar
manner using belts or wheels, containing much smaller particles of abrasive.

2.2.4 MAKING THE HANDLES

● 10 For many scissors, the handles are I 0 / formed from the start as part of the blank.
If not, they may be made of a metal alloy or from plastic. If they are metal, they are
made in the same way as the blanks and then welded to them. If they are plastic,
they are made by injection molding. In this process, molten plastic is forced under
pressure into a mold in the shape of the handles. It is allowed to cool and the mold
is opened to remove the handles. The handles contain hollow slots into which the
end of the blanks can be inserted. A strong adhesive is used to keep the handle
firmly attached.

2.2.5 ASSEMBLING THE SCISSORS

● 11 Two polished blades are attached to each other by a rivet or screw through the
previously drilled holes. Rivets, which cannot be adjusted by the consumer, are
used to make less expensive scissors. Adjustable screws are used in more costly
scissors.

● 12 The scissors are adjusted to ensure. that the two blades work together correctly.
They may be painted or plated with nickel or chrome to protect them from rust. The
scissors are inspected for flaws, the screw or rivet is lubricated, and the scissors are
wrapped for shipping to consumers.

2.3 QUALITY CONTROL

The most important aspect of quality control for scissors is the proper alignment of
the two blades. In order for scissors to cut smoothly, the blades must meet at two points
only. These two points are the swivel (the point where the rivet or screw connects the
blades) and the cutting point. The cutting point moves from just beyond the swivel to the
tip as the scissors are closed. The blades are prevented from meeting at any other points by

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giving them a slight horizontal and vertical curve away from each other during
manufacture.

In order to ensure that the blades meet correctly, the holes must be drilled to within
one ten-thousandth of an inch (about one four-hundredth of a millimeter) of the correct
position. The position of the blades is inspected visually to see if the blades meet evenly.
If not, a portion of one blade will overlap the other. This defect is known as a wing. The
tips are also inspected to ensure that they meet evenly, without a gap between them or any
overlap.

Because even dull scissors are able to cut paper adequately, quality scissors are
tested on tough synthetic fabrics. Sharpness is tested by making sure the blades cut the
fabric rather than tear it. Strength is tested by cutting through multiple layers of fabric. The
blades should come together with a constant pressure during cutting.

The consumer is responsible for maintaining the quality of the scissors. Scissors
should only be used to cut the materials for which they were designed. They should be
oiled and sharpened regularly, and the screw should be adjusted as necessary. Scissors
should be stored in a closed position. Setting down scissors in an open position is the most
common cause of dull blades.

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 3.0 MARKET RESEARCH & ANALYSIS

3.1 CUSTOMERS
Our product can be marketable for personnel use and also for restaurant’s kitchen
staffs such as the chefs from restaurants or even hotels. Since our product is small it will
be easier to carry around, most of customers that will use this product to cut down time
in preparing dishes due to its multipurpose features. This product is easily available as
we make sure that this product is available online and also wholesale through
manufacturer’s representative. For those customers want to get this product, they can
order through our official website or they can get it directly from our company.

3.2 MARKET SIZE AND TRENDS

3.2.1 Price calculation

No Components Price (RM)

1 Scissors’ blades 3.00
2 Detachable screw 7.00
3 Silicone grip for the handle 3.20
4 Scissors cover 5.00
5 Metal works 9.00
TOTAL RM27.20

The percentage of mark-up cost is

15% Selling price = Mark-up +Cost

per prototype

= (15% × RM27.20) + RM 27.20

=RM 31.28 per unit

The 3 years of the current total market

Number of total population in Shah Alam = 4,500 000

40
Middle class people in Shah Alam =
100 × 4 500 000 = 1, 800 000

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From the total population, 1% is our potential customers.

= 1% × 1 800 000

= 180 000 customers

Average market size for LED lamp industry

= (“Multipurpose scissors”) + (Top two highest selling kitchen in Malaysia)

=RM ( 31.30 + 38.40 + 44.40) / 3

=RM 38.03

Total Market Size = RM 38.03× 180,000

= RM 6, 846 000

The demand market for multipurpose scissors is expected to increase within three
years. This may because of many people nowadays like new innovations that can reduce
their cost as well as saving their money for a much cheaper product. The minimum price
that will be spend for our product only RM 38.03, so as we can predict about each 1% of
customer lived in Shah Alam will attracted to buy our product. Hence, the total market
size for our product is about RM 6, 846 000. This product also has potential profitability
because it is a new innovation of few series of detachable blades that serves multipurpose
features produced by us. As everybody knows, people nowadays love to use new things
in order to follow the technology trend.

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 We already targeted our potential annual growth in order to sell this product to
customer. Table below showing the estimation of total market size for second and third
years:

Year 2019 2020 2021

Market size (%) 1 1.5 2
Target Market 180 000 270 000 360 000
Total Market size 6 846 000 10 268 100 13 690 800

Total market size in 3 years = RM 6 846 000+ RM 10 268 100+RM 13 690 800

= RM 30 804 900

3.3 COMPETITION
3.3.1 Comparison between other competitors

Table 1: Comparison between other competitors

PRODUCT Detachable Buffalo s/steel 3M Scotch Detachable

Multipurpose multifunction scissors Premium Kitchen Scissor
Scissors
PICTURE

PRICE RM 31.30 RM 38.40 RM 44.40

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STRENGTHS ∙ Few detachable ● Heavy ● Detachable piece
duty
blades comes
together as a set.

∙ Available with cover

WEAKNESS ∙ ● undetachable
Handling the Rigid purpose
remaining blade

3.4 MARKET SHARE AND SALES

Based on the acceptance of our product which is Detachable Multipurpose Scissors by

customers, we can predict the market share for our product for 3 years. For assumptions,
we had assumed that the increase of market share was 10% for every year.

First year: 2019

Total market share = 10% of total market size

= 10% x RM 6 846 000

= RM 684 600

RM 684 600/ RM 31.30 = 21 873 units

With estimated RM 684 600 of sales and market share of 10%, Detachable Multipurpose
Scissors will enter the market
YEAR 2019 2020 2021
MARKET SHARE 10 % 13 % 15 %
SALES (UNITS) 21 873 28 434 32 809
SALES FORECAST RM 684 600 RM 889 980 RM 1 026 900

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3.5 MARKET STRATEGY

3.5.1 Overall marketing strategy

We will trigger the interest of customers to find out more and try our product.
And when they satisfied with the functions and features of our products, they will
purchase it. This product had been design to be user friendly. It serves few purposes at
the same time and obviously time saving and convenient.

3.5.2 Advertising and promotion

This is the commercial style in promoting our product. We will use our
technology era and mass media by promoting our product through internet and
multimedia. In additions we also will advertise it on banner or sign board and business
card. We also will build our own company website to ease our customers and to attract
new customers to find out more about our product.

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4.0 MANAGEMENT TEAM

4.1 ORGANIZATION CHART

Nurul Nadiah bt Mohd Yusof Zaki

CEO

Nur Fatihah Abdul Rahman Nur Alia Syafieqa Mohd Yuslan Emalyn Damyra Idza
Marketing Director Financial Director Human Resource
Director

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4.2 Key Management Personal
Key management personal are those who have an authority and responsibility
for planning, directing and controlling the activities of the entity, directly or indirectly.
Top business management usually includes the CEO, CFO, COO as well as a number
of vice presidents are considered as key management because they have the ability and
power to influence and direct company operations. Every department head and
manager can be considered a key manager because they have influence in planning and
directing their departments operations.

4.3 Management Compensation and Ownership

Management compensation could be related to ownership characteristics in
various ways such as type of controlling shareholder, ownership concentration, the
separation between cash flow and voting rights and the presence of shareholder’s
agreements. In high management compensation, it is associated with a smaller
management size, the higher proportion of family members on the management and the
lower future performance.

4.4 Supporting Professional Advisors and Services

In professional advisors, it is like management think tank where the members in the
management team will provide an additional advice to run the business. The one who is chosen to
serve in professional advisors is obviously those who have genuine interest in business and have
the experience and expertise to provide good advice.

In professional services of the management team, all those external professional advisors
in the business plan is being listed such as accountants, bankers, lawyers, IT consultants, business
consultant and business coachers. These professionals will provide a web of advice and support
outside the internal management that can be invaluable in making management decisions and make
the business a success.

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5.0 FINANCIAL PLAN

5.1 Start-up cost

Starting cost are critical to determining whether a start-up can bootstrap or needs outside
funding. For existing companies that already have financial results, projections start with the
expected ending balance at the previous period. Starting costs are essentially sum of two kinds of
spending.

Start-up expenses are the expenses that happen before the beginning of the plan before the first
month of operations. For example, many new companies incur expenses for legal work, logo
design, brochures, site selection and improvements and signage. If there is a business location,
then normally the start-up pays rent for a month or more before opening. If the employees start
receiving compensation before the opening, then those disbursements are also start-up expenses.
Start-up assets is a typical start-up when the company starts and it is in cash, business or plant
equipment, office furniture, vehicles and starting inventory for stores or manufactures.

Table 2: One time start-up cost

One time start-up costs RM

Business fixtures and equipments 1000.00

Machineries /Equipments 2000.00

Basic renovation 2000.00

Rental deposit (2months) 3000.00

Utilities (1 months) 500.00

Legal and professional fees 500.00

Licenses and permits 500.00

Insurance 1000.00

A. Total one time start-up costs 10 500.00

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5.2 Working capital
Net working capital is a liquidity calculation that measures a company’s ability to pay off
its current liabilities with current assets. The measurement is important to management, vendors
and general creditors because it shows the firm’s short term liquidity as well as management’s
ability to use its asset efficiency. Working capital is a measure of a company’s liquidity,
operational efficiency and its short term financial health. If a company has substantial positive
working capital, then it should have potential to invest and grow.

Table 3: Months expenses (4 months )

4 Months expenses RM

Salaries and wages (5 person) 20 000.00

RM 4000 X 5

Rent 2500.00

Utilities 1000.00

Office supplies 500.00

Miscellaneous 2000.00

a. Total monthly working capital 26 000.00

required

B. Total 4 months expenses (a x 4) 104 000.00

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5.3 Cost of component per prototype

Table 4: Cost of component

Components RM/ Units Units RM

Multipurpose scissor 10.00 1 10.00

Cardboard - 3 30.00

Glue - 1 3.00

Others (Lumpsum) - - 7.00

Total cost per - - 50.00

prototype

C. Total cost of - - 150.00

prototype x 10
quantity

Total Cost (4 Months) = Total Cost A + Total Cost B + Total Cost C

= RM10, 500 + RM 104, 000 + RM 150
= RM 114 650.00

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 6.0 PROJECT MILESTONES

Exploration Design Product Advertising

Initiate Develop Commercialization

Research Manufacturing Launch in new market

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7.0 CONCLUSION
In conclusion, it can be concluded that the new invention is remarkable and distinguish
itself from the current scissor sold in the market. This multipurpose scissor promised a great future
if further development and upgrade is done on the current product.

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REFERENCES
"scissors." The Oxford Pocket Dictionary of Current English. Retrieved December 30, 2019 from
Encyclopedia.com: https://www.encyclopedia.com/humanities/dictionaries-thesauruses-pictures-
and-press-releases/scissors

"Scissors and Shears." Consumer Reports, October 1992, pp. 672-677.

Allison, John. "The Anatomy of Quality Scissors." Knife Connection. May 30,
1996. http://www.knife.com/news/scissor.htm(July 14, 1997).

Secrest, Rose "Scissors." How Products Are Made. Retrieved December 30, 2019 from
Encyclopedia.com: https://www.encyclopedia.com/manufacturing/news-wires-white-papers-and-
books/scissors

Werner, Karen Flake. "Cutting with Scissors: Three Steps to Easy Snipping." Parents
Magazine, January 1996, pp. 137-138.