toy manufacturers project report

Introduction

What is my project?

Even in the fast-paced, money-driven world of the 21st century, toys, undeniably, are still an inseparable part of childhood. From the classical Barbie dolls and Lego blocks, to remote-controlled cars and computer-programmed robots, toys dominate the world of the young. The demand is ever-increasing, and customers are constantly looking for creativity and originality, and of course the toys’ affordability.This project examines the needs of the market, its demands and expectations, and aims to meet these expectations by putting forward innovative ideas that emphasizes novelty while keeping the product cost reasonable and affordable by the general public. This project would further explore the effect of toys on the over-all development of a child, seeking to develop toys that are beneficial to the proper growth of a child and will aid his/her character development, impacting his/her future decisions and career.Thus, I decide to choose a “Toy Manufacture” project for my assignment. It is a challenging business project with high ROI (Return on Investment), demanding creativity and entrepreneurship, and is realistic and impacts our day-to-day lives.

Why did I choose this project?

IT project is also interesting and creative. But my aim is to become a business man so I choose a business project as my project. Business project is not simple as the way I construct my project, but it is almost basic like this. My ambition is to become a business man and thus I decide to choose a business project as for this assignment. This project covers the fundamental structure of a business project, and summarizes the complex business functions into its basic forms and practices.Since young, you definitely would wish to own at least one toy. A toy means a lot to a child. It is not only something to play with, but it is just like a friend he can hold close to his heart. Furthermore, toys contribute to the intellectual development of a child, as well as bringing happiness to their childhood. They also play an important part in ensuring the proper development of a child, be it mentally, emotionally, socially, physically or psychologically.

When I was a child, my mother used to buy me small robots or cars. I can vividly remember how doubtlessly happy I was at that time. Toys were me source of encouragement and motivation. They propelled me to strive for better heights when I was in kindergarten, primary and even in secondary school. I tried my all best to be a good little boy and study hard for the reward of a toy when I finally achieved good results. I can feel how blissful it was to own a toy, and just how influential a toy may to a young, innocent mind. Unfortunately, not all the children in the world have a chance to experience the exhilaration of having a toy, mainly due to financial inadequacy. This is the reason why I decide to invest in toy manufacturing, to produce different toys of affordable prices for export to countries where children have yet to experience the joy toys bring your lives.

History of Company:

This is the situation how i create my project. I start with a company name “ARCHY” with the logo: The ARCHY Company began in the workshop in Pakistan, start making wooden toys in 2007. It expanded to producing plastic toys recently; ARCHY began producing the now famous in toy cars, calling them "Cars that child can ride". These cars were based largely on the design of a designer Mr. Adeel Ahmad in 2008. ARCHY modified the design of the design after examining a sample given to it by a British supplier of an injection-molding machine that ARCHY had purchased. The first ARCHY sample, manufactured from a factory in Pakistan, was developed in the spirit of traditional wooden cars that could be heavy and rough; but these plastic materials could be cheaper and nicer. The ARCHY Company's motto is "Devotion for children", this motto was created by CEO to encourage his employees never to skimp on quality, a value he believed in strongly. The motto is still used within the company today.The use of plastic for toy manufacture was not highly regarded by retailers and consumers of the time. Many of the ARCHY Company's shipments were returned, after poor sales; it was thought that plastic toys could never replace wooden ones.

Acknowledgements

First and foremost, i would like to thank to our professor of this project, Dr. Ali Ahsan for the valuable guidance and advice. He inspired us greatly to work in this project. His willingness to motivate us contributed tremendously to our project.

I wish to express my cordial gratitude to the all peoples who have played a crucial role in the research for this project, without their active cooperation the preparation of this project could not have been completed within the specified limit.

The next person I would like to acknowledge is my project guide Mr. Tanveer Ahmed who supported me throughout this project with utmost cooperation and patience.

Finally, an honorable mention goes to my family and friends for their understandings and supports on us in completing this project. Without helps of the particular that mentioned above, we would face many difficulties while doing this project.

PROJECT CHARTER

Project Name: Giving a colorful life to a child through toys

Project Number:0044

Date: 23\12\2010 Revision Number:44333

PROJECT GOALS

In childhood you definitely would wish to own at least one toy. A toy means a lot to a child. It is not only something to play with, but it is just like a friend he can hold close to his heart. Furthermore, toys contribute to the intellectual development of a child, as well as bringing happiness to their childhood. They also play an important part in ensuring the proper development of a child, be it mentally, emotionally, socially, physically or psychologically.Unfortunately, not all the children in the world have a chance to experience the exhilaration of having a toy, mainly due to financial inadequacy. This is the reason why I decide to invest in toy manufacturing, to produce different toys of affordable prices for Pakistani children whom have yet to experience the joy toys bring your lives.

DELIVERABLES

To keep a child entertained Toys That Encourage "Grown-Up" Behavior The intellectual development of a child Development of a child through mentally, emotionally, socially, physically or

psychologically.

SCOPE DEFINITION

To create toys for every home. The project is a simple business project. However, the benefits it brings are huge. Children are the most potential customer which makes the business more interesting and high profit. The Return on investment (ROI) is about 35% which is quite high for a small business. It also brings jobs for a town where the factory placed in.

PROJECT MILESTONES

Task Name Duration(Days)1 Market research 10

2 Analyze survey 153 Model making 104 Rent Factory 35 Bank Loan 56 Import production line 57 Hire worker 158 Training worker 109 Produce sample 2010 Testing data 511 Improve feature 2012 Plan Marketing 513 Advertise 2014 PR 1015 Manufacture 30 16 Deliver production 5

Project Budget: 10,000,000 Project time: 135 days (4Months 15 days)

CONSTRAINTS & DEPENDENCIES

Cultural differences would make it difficult to manage the workers, in addition the political and terrorism constraint can also have a deep affect on the delivery of the project. The time and cost are the dependencies of this project which are mentioned above. So the project has to be delivered within the given budget and the given time.

Stakeholders: The stakeholders of my organization are:

Internal Stakeholders:

Project Manager Employees Auditors Managing and other directors related to project

External Stakeholder: Bank Children Sponsors

o Lego toys inc.

o Toys r us.

Requirements Documentation:

Business Need/Problem

The business need is to make profit out of a market that has all type of customers. The problem is that the children of Pakistan don’t get to play with good quality toys and not all children get toys accessibility.

Project Objectives

To keep a child entertained

Toys That Encourage "Grown-Up" Behavior

The intellectual development of a child

Development of a child through mentally, emotionally, socially, physically or psychologically.

Gain profit through a market in which providing toys to every Childs home will be out utmost responsibility.

Working hours:

Our working hours will be from 09:00am to 05:00pm. Late working hours will also be accepted in case of bonuses and need of money. Plus security persons and other maintenance people will always be in the factory.

PROJRECT TIME FRAME

Requirements Management Plan:The requirements management plan includes the WBS structure of the project that is given as follows:

The project contains 16 tasks, each task has one function and been divided in WBS (Work Break down Structure). The following chart is showing the WBS:

PROJECT

Import Productio

n Line

Hire Worker

Market Research

Analyze

Surveys

Factory Rent

Produc

e

sample

Bank

Loan

Testing

data

Improve feature

Model

Making

MarketingAdvertisements

Public Relations

Project Plan

The work will be done in the following way. Archy toys will loan from Askari Bank which amounts

300,000,000. We will rent a factory in Rawalpindi industrial site. Its cost is

100,000 RS per month. The raw material that will be used in creating toys will be

purchased from Plastic factory. Its cost will be 20,000 RS per need. For wooden toys the raw materials will be purchased from the

wood factory. Its cost will be 60,000 per need.

Machinery’s cost is 150,000 which is an automatic machine. Give raw materials through one end and get the finished product through the other end.

Our working hours will be from 09:00am to 05:00pm. Late working hours will also be accepted in case of bonuses and need of money. Plus security persons and other maintenance people will always be in the factory.

Archy toys will be responsible for all transporting of the materials and machinery to the factory.

Hiring and training will be based upon employer’s skills, education and output.

Their payment is also accordingly.

Project Schedule:Sr. NO Activities Month Year Duration1 Market research 12 2010 102 Analyze survey 1 2011 153 Model making 1 2011 104 Rent factory 12 2010 35 Bank line 12 2010 56 Import production line 12 2010 57 Hire worker 1 2011 158 Train worker 1 2011 109 Produce sample 2 2011 2010 Testing data 3 2011 511 Improve feature 3 2011 2012 Plan marketing 4 2011 513 Advertise 4 2011 2014 PR 4 2011 1015 Manufacture 5 2011 3016 Deliver product 6 2011 5

Total Budget: $206,800Loan: 220,000

Project Tasks

Market research:Market research is a continuing exercise to collect and analyze environmental, consumer, competitor and industry information to make the project decisions less risky.The main mission is surveying the potential customers, children and parents, to know what they want, how they want and some information. According to the survey, we can know the taste of the customers and the trend of the market. Here are some questions in the survey:

Q: What kinds of toy do you like the most?A: a) Robot

b) Cars c) Dolls

d) Others: ……………

Q: You want your toys have what kind of characteristics?A: a) Look nice

b) Useful c) Smart d) Others: ……………

After collecting survey from the customers, we can continue to the next task, Analyze survey, to know the taste of the market.

Analyze survey:

Analyze survey is one of important tasks because it helps the project less risky and more judicious. Analyzing is the tasking of dividing

and doing the statistic with the number to find out what the trend of market is. According to the result of analyzing survey, we can decide which model we will product and how should we design it. The following chart shows the result of 1000 surveys in Pakistan:

That leads the decision to choose manufacture toy cars is my project

Model making:Model making is to sketch and draw the production on the paper. The mission is completed by the professional designer. After choosing the most suitable model, the project will produce a sample.

Rent Factory:It is costly to build a new factory. It also wastes much time. The alternative way is to rent a factory. We need to find a factory to manufacture. Almost factories are in suburb. It is cheaper and friendlier with the environment.

Bank loan: This task is part of budget plan and control. It is one way of attract investment and money. When my project has enough of money, it can run smoothly.

Import Production line:After renting factory and having enough money, we can start importing production line to produce toys. The main mission is buying machine and making a completed production line from beginning to finish. The production line can be automatic or semi-automatic.

Hire worker:To start producing toys, my project needs worker to work in the factory. So, the task is to employee. With the size of the factory, we can hire from 100 to 200 workers.

Training worker:To operate the production line, the employees have to know how to run the machines and control them. To make them understand, a course of training worker would be held to guarantee the quality of production and the success of project. After that, we can produce production to test and evaluate.

Produce sample: Before manufacture with a huge amount, we need to test and

evaluate production. Thus, we first produce some samples to test and evaluate. The duration is about 20 days to make a complete production.

Testing data: This is the time for evaluating the sample production. We will record the stats for each feature of the toys. Then we will test for the real usage. Also, we can make the survey for the customer to

evaluate as well. After all, we can know what is the weak point and strong point to improve.

Improve feature:Before manufacturing with a huge quantity, this is the last time the product can be improved the features and remade the weak points. After all, we have the perfect toys model for producing. This will takes 20 days to improve and revise the production.

Plan Marketing:Now we can be ready to produce the best toy cars to the market. What we have to do now is planning marketing it for the distributors and the customers. Marketing is an integrated communications-based process through which individuals and communities discover that existing and newly-identified needs and wants may be satisfied by the products and services of others. Marketing is influenced by many of the social sciences, particularly psychology, sociology, and economics. Anthropology and neuroscience are also small but growing influences. Market research underpins these activities through advertising; it is also related to many of the creative arts. The marketing literature is also infamous for re-inventing itself and its vocabulary according to the times and the culture. Advertise: This is a part of marketing. We can advertise our production by advertising on TV, poster, on newspaper and other media. Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service.

Poster AdvertisementPublic Relation:

PR (Public Relations) is also known as a strategy of marketing. Public relations help an organization and its publics adapt mutually to each other. Doing PR is one of difficult tasks for marketing the production to public. Manufacture:

This is the main task of business. We can produce a big quantity according to the contract and bring the production to the market.

Deliver product:To deliver productions to the distributor, this is the last task to complete the project. We keeping finding the contract and improve our business. We will gain profit by manufacture with a big amount.

Scheduling TechniqueTime duration:

• Start day: Monday 12/20/2010• Finish day: Friday 06/24/2011• Duration: 135 days (4 months 15 days)

Quality Management Plan

Roles Job Description with related to Quality1 Project manager The project manager is concerned with every part of the

project. He is the vital person who plays the major role in the project. The project manager will have the overall responsibility for the quality of the project

2 Quality Control Manager

A quality manager will coordinate the activities required to meet quality standards. He will also monitor and advice on the performance of the quality management system and produce data and report on performance, measuring against set indicators.

3 Quality Control Inspector

The quality control inspector works in a manufacturing environment and will ensure the quality of products or goods manufactured. Using different machineries or products his/her responsibilities will include determining if manufactured products or goods meet quality standards enforced by the manufacturer. Findings are reported and analyzed and may result in improving or changing a manufacturer process.

4 Quantity Surveyor The quality surveyor will ensure that what ever procurements are made should be of A1 quality and has no defects. They also manage all costs.

5 Project Engineer He will ensure the quality related to the technical side of the project. He will ensure the machinery is producing good quality products.

6 Marketing Manager The marketing manager will ensure that the products are packed with quality so that they don’t damage while transportation. They also will ensure that the advertisements are of quality so that they attract the customers easily.

The quality management plan will ensure that the quality is kept according to the set standards. There will be regular checks of the machinery, raw materials, employees so that all are ensuring quality.

Risk Register

Sr. NO Risks Risk Management1 Political Risk We cannot avoid political risk due to the political

crisis in Pakistan but we ensure that Archy’s toys will not hire people linked to political system. Secondly no one would be allowed to take part in political games.

2 Inflation Forecasting’s will be made in advance to the every period of time so that Archy’s toys will make advance bookings of materials that will be needed in the production in case of inflation.

3 Material Damage The transportation of the material would be ensured in good packing material. Plus in the factory the material would be ensured to be in a safe place so that no material gets damaged. Fire proof measures will be taken in the factory so that in case of a fire all materials and machineries of the company are safe.

4 Supplier The chosen supplier of our company would be told strictly to ensure the quality materials on time.

5 Power Breakdown The risk of load shedding would be minimized by placing at least two generators of 40 KVA’s. Their would be an extra cost in the expense of diesel in case of power break downs or load shedding.

6 Employee turnover The risk of employee turnover will be minimized by giving employee benefits to them. Such as annual bonuses, comfortable working environment, 1 day off in a week & Emergency leaves e.t.c.

7 Competitors Our marketing manager will be ensured to keep an eye on the competitors so that we don’t lose our market shares while any changes.

Procurement plan

The following steps make the procurement plan:

Request for Quotations: In request for quotations we will float a tender in the newspaper.

Supplier identification: We will select that supplier which will provide us the materials timely and cost efficiently. They would also be considered in accordance to the quality of the materials.

Schedule:

SR. No Procurements Schedule

1 Plastic 1-2 monthsNov 2010 – Feb 2011

2 Wood 1-2 monthsNov 2010 – Feb 2011

3 Paint 1-2 monthsNov 2010 – Feb 2011

4 Machinery 1-2 monthsNov 2010 – Feb 2011

5 Vehicles for Transportation 1-2 monthsNov 2010 – Feb 2011

6 Computer and stationeries 1-2 monthsNov 2010 – Feb 2011

Human Resource Plan

ORGANIZATIONAL CHART

Roles & Responsibilities and Wages

SR. No Job Name Description Wages1 Managing director MD will be the head of all the operations

and everything will be reported to him. He has the highest authority in the organization. He has to directly communicate with its stakeholders.

$20,000

2 Project manager The role of the project manager will be planning, executing and finalizing project according to strict deadlines and within budget. It includes acquiring resources and coordinating the efforts of team members and third party contractors or consultants in order to deliver project according to plan. He will also define the projects objectives and oversee quality control throughout its life cycle.

$18,000

3 Marketing manager Typically marketing manager will

oversee all marketing, advertising and promotional staff and activities. He will establish marketing strategies to meet projects objectives. Evaluate customer research, market conditions, and competitor data and implement marketing plan change as needed.

$15,000

4 Procurement manager His main responsibility will be to purchase all the required items as per need. Other areas of responsibility include price negotiation, planning, production, inventory control, quality control and factory control.

$8,000

5 Finance manager Maintain day-to-day financial control of the service within budget heads agreed by the trustee board. Ensure that all finances are properly administered and monitored, including credit control. Advise on the proper allocation of resources. Ensure that appropriate financial regulations and controls are in place and used at all times. Prepare a review detailed budgets for approval by the governing body in conjunction with the honorary treasurer and appropriate subcommittee. Ensure that all financial reporting obligations are met in relation to submissions for funding, for grant aid, for contracts and any other initiatives.

$10,000

6 Project engineer Head project meeting to collect and disseminate information pertaining projects. Technical specification review and resolution. Coordinate the collection and disseminate of technical information between the company and customer. Schedule and monitor program activity to achieve an on time result including follow up with external suppliers to ensure timely response too action items.

$8,000

Monitor program cost activity to achieve an in budget result. Evaluates project performance of functional areas. Perform other assigned duties as deemed necessary by the supervisor. Prepare

7 Quality control manager Plans, coordinates, and directs quality control program designed to ensure continuous production of products consistent with established standards: Develops and analyzes statistical data and product specifications to determine present standards and establish proposed quality and reliability expectancy of finished product. Formulates and maintains quality control objectives and coordinates objectives with production procedures in cooperation with other plant managers to maximize product reliability and minimize costs.

$7,000

Communication Plan

Objectives of communication:

To provide RFQ to the supplier of the material. To keep a record of the purchased materials. To keep a check whether the materials are being delivered as

per schedule. To keep a record of the accomplished and unaccomplished

goals. To check whether the work is done right or wrong. To provide performance feedback to the project team.

Communication:

Communication will be through monthly meetings and all the project performance will be delivered through documentation. Meeting shall be scheduled thoroughly the project.

Communication will be done via emails to the consultants. In return the consultant will provide a schedule for on site inspection.

Communication with the project team will be done daily with face to face conversation.

Communication with the supplier will be done through documentation on every purchase, RFQ will be submitted to the supplier in return the supplier will give quotations and best suitable supplier will be chosen. The supplier will submit invoices of the delivered materials on each purchase.

Conclusion

Even in the fast-paced, money-driven world of the 21st century, toys, undeniably, are still an inseparable part of childhood. From the classical Barbie dolls and Lego blocks, to remote-controlled cars and computer-programmed robots, toys dominate the world of the young. The demand is ever-increasing, and customers are constantly looking for creativity and originality, and of course the toys’ affordability.

The project is a simple business project. However, the benefits it brings are huge. Children are the most potential customer which makes the business more interesting and high profit. The ROI is about 35% which is quite high for a small business. It also brings jobs for a town where the factory placed in.