UNIVERSITI MALAYSIA PERLIS

MMK30103
ENGINEERING TECHNOLOGY MANAGEMENT
SEMESTER 1 2022/2023

PREPARED BY:

PROPOSAL TITLE 24 HOURS CONVENIENCE STORE AT UNICITI ALAM

1. HARRIS HAKIMI BIN MOHD ZAHIR (191402135)

2. MUHAMMAD SYAHMI BIN DAUD (191402140)
3. MUHAMMAD AMMAR HADIF BIN ABDUL (191402617)
GROUP MEMBER 4. MUHAMMAD SYAHMI BIN ABDULLAH (191402145)
5. MUHAMMAD ZULFARIS BIN MAZLI (191402146)
6. NURHAYATI BINTI HASSAN (181402593)
7. WAN NUR AKMAL BIN NORDIN (191402625)
1. DR. HEAH CHENG YONG

LECTURER 2. DR. MOHD ASYRAF BIN CHE DOI

3. DR. YUZAIRI BIN ABDUL RAHIM

DATE OF
6 FEBRUARY 2023
SUBMISSION
 TABLE OF CONTENTS

No. CONTENT PAGE

TABLE OF CONTENTS 1
EXECUTIVE SUMMARY 2
1.0 COMPANY AND ORGANIZATION
1.1 Introduction of Company 3
1.2 Vision and Mission 3
1.3 Ownership of the Organization 4
1.4 Structure of the Organization 5
2.0 PROJECT DESCRIPTION
2.1 Background 6
2.2 The Problems or Opportunity Statement 6
2.3 The Goal 7
2.4 The Objectives 7
3.0 LOCATION OF THE PROJECT 8–9
4.0 SCHEDULE OR PROJECT WORK PLAN
4.1 Duration Plan 10
4.2 Critical Path through Project 11 – 12
4.3 Gantt Chart 13
5.0 HUMAN RESOURCES
5.1 Position and Number of Employees 14
5.2 Salary and Remuneration 14
5.3 Task Specifications 15
6.0 PROPOSED BUDGET
6.1 Capital Cost 16
6.2 Cost Category 17
6.3 Overhead Cost 18
6.4 Labour Cost 18
6.5 Total Cost Operation 18
6.6 Profit Cost 18
6.7 Net Profit Cost 19
6.8 Cash Flow 20
6.9 Cash Flow Diagram 21
6.10 Future Value 21
6.11 Double Declining Balance (DDB) Depreciation 22

1
 EXECUTIVE SUMMARY

Project management and finance (economics) is an important element to demonstrate knowledge

and understanding of engineering technology management principles and economic decision-
making. As a team in Strategic Planning Team, this proposed project was prepared for
Perbadanan Kemajuan Ekonomi Negeri Perlis, PKENPs, for economic growth contribution in
Perlis.

As of September 1, 1973, Perbadanan Kemajuan Ekonomi Negeri Perlis (PKENPs), formerly

known as Perbadanan Kemajuan Negeri Perlis, had been created following Perlis State
Enactment No. 6. The Corporation effectively constructs buildings, and residential homes, and
shops throughout the state of Perlis, which allows it to remain competitive with housing and other
building developers both inside and beyond the state. The Corporation must preserve its core
values in guiding the state's development and economy to meet the growing demand for the
development of the state through the construction of buildings, shops, and residential homes.

This proposal will be described how the communities of Uniciti Alam will profit from a new 24-hour
convenience shop. It provides everyday necessities including pre-cooked meals, snacks,
pastries, and beverages like coffee, milkshakes, and canned and bottled drinks to surrounding
schools, residential neighbourhoods, and commercial and business sectors. The store offers a
small selection of household items, groceries, over-the-counter medications, magazines, and
newspapers in addition to food and beverages. Along with offering 24-hour service, this
convenience shop will also allow consumers to place orders over the phone for delivery to their
homes. Additionally, they have the option to pick up their orders on a particular day and time. This
increases the level of "convenience" offered by the store.

2
1.0 COMPANY AND ORGANIZATION

1.1 Introduction of Company

Towkey Maju Enterprise business was registered in 2014 and has been running various business
sectors in Malaysia. Among the business sectors that have been ventured into are companies in
the retail and food sectors. The owner has a mini cafe in his shop called Halal Hub Mini Cafe.
This business also offers quality Malaysian Muslim products that are guaranteed halal by the
Malaysian Islamic Development Department (JAKIM). Now, Towkey Maju Enterprise is also
developing business in the food sector, namely catering and canteens. The catering service
offered is more of a concept to help the middle class and the lower class to run the event at a
reasonable price. The owner also sets high standards to achieve this goal. This is the main
foundation of this business.

1.2 Vision and Mission

a) Vision
Developing the name of Towkey Maju Enterprise in the field of retail and halal food industry
with competitive prices.
b) Mission
 Supplying the cheapest and quality food in Malaysia.
 Helping “Bumiputera” micro traders.
 Develop business throughout Malaysia.
 Meet the demands and needs of the middle and lower classes to get catering
services.
 Opening job opportunities and helping university graduates enter the business
field.
 Produce the best innovations in the field of food.

3
1.3 Ownership of the Organization

Name : Muhammad Syahmi Bin Abdullah

NRIC No : 960521-02-5747
Address : 440, Lorong Teratai Putih 1, Tmn Berjaya
05050 Alor Setar,
Kedah.
Date of Birth : 21/05/1996
Age : 26
Gender : Male
Marital Status : Single
Nationality : Malaysia
Religion : Islam
Phone No. : 017-5110959

4
1.4 Structure of the Organization

5
2.0 PROJECT DESCRIPTION

2.1 Background

Our mission is to improve people's lives every day by paving the way for access to the most
reasonable products and services, fostering economic opportunity, and preserving the
environment. We provide extremely high quality, comfortable, informative, and tailored services
according to our client’s needs. Our company’s strategy will revolve around the need to provide
quality services to our various target customers, in the process fully satisfy their needs in order to
provide everyday necessities, which includes the halal food industry, groceries, and a few nonfood
products with competitive prices to customers.

Towkey Maju Convenience Store's wants to offer its consumers things that make their daily life
more convenient. Our Store works with a network of suppliers in all around Malaysia to assist us
achieve this goal. Our suppliers are chosen based on their capacity to satisfy our market's
demand for high-quality items delivered on schedule and with integrity.

This retail business will surely benefit the Perbadanan Kemajuan Ekonomi Negeri Perlis
(PKENPs) in all above aspects mentioned and will somehow tremendously affect the economic
growth contribution in Perlis.

2.2 The Problems or Opportunity Statement

Our principles define our company practices and act as a behavioral guide to help us achieve our
objective. We focus on three major factors in running our business which are:

a) Make a Difference
 To make a difference outside of our doors, we are prioritizing satisfying the needs of
our consumers. We behave in a moral and upright manner.
b) Sharing is Caring
 To give our clients the best deal possible, we continuously engage on boosting
productivity and controlling expenses.
c) Developing Local
 To aid in accepting economic transformation and investing in our people through
creating opportunity. We give back to the areas where our customers' needs are the
greatest.

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2.3 The Goal

Towkey Maju Convenience Store's goal is to serve people of Uniciti Alam and the nearby areas
with packaged foods, fresh foods, fast food, soft drinks, groceries, and a few nonfood products.
Customers will receive things from the business at reasonable prices, and the owner will make a
solid profit. Towkey Maju Enterprise provide retail halal food industry with competitive prices to
customers. On the other hand, Towkey Maju Enterprise give us cheapest and quality food in
Malaysia. High quality of food will create customer loyalty and increase customer satisfaction.
While the food price is rising in years by year, this company still with their goal which is to meet
the demands and needs of the middle and lower classes to get catering services.

2.4 The Objectives

i) To create Towkey Maju as the neighbourhood convenience store of choice for people
living in Uniciti Alam and the nearby neighbourhoods.
ii) Enhance customers' shopping experiences
iii) Sell products with a small market
iv) To maintain the cost of food which is very reasonable and satisfying to the customer.

7
3.0 LOCATION OF THE PROJECT

The strategic location that has been chosen for this project is at Uniciti Alam Sungai Chuchuh.
This location is strategic because student of Universiti Malaysia Perlis (UniMAP) staying around
this area. With having this project here, it will gain more attraction for people especially student
who staying at Unicity Alam due to hard for them to find convenience store after 12 midnight.

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9
4.0 SCHEDULE OR PROJECT WORK PLAN

4.1 Duration Plan

24 HOURS CONVENIENCE STORE AT UNICITI ALAM

Activity Respond Estimate Earliest Latest
Duration Start Finish Start Finish
1 Briefing the mini project Ammar 1 0 1 1 2
2 Title project confirmation Harris 3 1 4 2 5
3 Propose the project Syahmi 2 4 6 5 7
convenience store Daud
4 Project approved Syahmi 3 6 9 10 13
Abdullah
5 Create an organizational Zulfaris 2 4 6 5 7
structure
6 Make a checklist groceries Hayati 3 6 9 7 10
item to sell
7 Make equipment list for Akmal 3 10 13 10 13
setup the store
8 Looking for good suppliers Ammar 4 4 8 7 11
to deal
9 Hire the manpower Harris 2 8 10 11 13
10 Estimate cost and Syahmi 4 13 17 13 17
determine budget Daud
11 Order all the groceries Syahmi 5 17 22 19 24
items to sell Abdullah
12 Set up the convenience Zulfaris 7 17 24 17 24
store and all the groceries
items
13 Opening store Hayati 1 24 25 24 25

10
4.2 Critical Path through Project

Early Start Duration Early Finish

Activity
Late Start Slack Late Finish

4 2 6 6 3 9
3 4
5 1 7 10 4 13
0 1 1 1 3 4
1 2
10 3 13
1 1 2 2 1 5 4 2 6 6 3 9 13 4 17 17 22 24 1 25
5 6 7 10 11 13
5 1 7 7 1 10 10 0 13 13 0 17 19 2 24 24 0 25

17 7 24
4 4 8 8 2 10 12
8 9 17 0 24
7 3 11 11 3 13

11
 24 HOURS CONVENIENCE STORE AT UNICITI ALAM
Estimate Earliest Latest
Activity Respond Duration Start Finish Start Finish Total
Slack
1 Briefing the mini Ammar 1 0 1 1 2 1
project
2 Title project Harris 3 1 4 2 5 1
confirmation
3 Propose the project Syahmi 2 4 6 5 7 1
convenience store Daud
4 Project approved Syahmi 3 6 9 10 13 4
Abdullah
5 Create an Zulfaris 2 4 6 5 7 1
organizational
structure
6 Make a checklist Hayati 3 6 9 7 10 1
groceries item to
sell
7 Make equipment list Akmal 3 10 13 10 13 0
for setup the store
8 Looking for good Ammar 4 4 8 7 11 3
suppliers to
deal
9 Hire the manpower Harris 2 8 10 11 13 3
10 Estimate cost and Syahmi 4 13 17 13 17 0
determine budget Daud
11 Order all the Syahmi 5 17 22 19 24 2
groceries items to Abdullah
sell
12 Set up the Zulfaris 7 17 24 17 24 0
convenience store
13 Opening store Hayati 1 24 25 24 25 0

12
4.3 Gantt Chart

13
5.0 HUMAN RESOURCES

Human resources is crucial because it helps businesses adapt to a dynamic marketplace, attract
and retain top talent, and manage employee benefits.

5.1 Position and Number of Employees

Position Number of Employee

Leader Chief Executive Officer 1
Finance Team Accountant 1
Billing Clerk 1
Public Relation Marketer 1
Advertiser 1
Regional Manager Store Manager 1
Customer Servicer 1

5.2 Salary and Remuneration

Position Quantity Salary (RM) KWSP (RM) Perkeso (RM) Total (RM)

Chief Executive 1 2800 308 13.75 2478.25

Officer
Accountant 1 2200 242 10.75 1947.25

Billing Clerk 1 1600 176 7.75 1416.25

Marketer 1 2000 220 9.75 1770.25

Advertiser 1 1800 198 8.75 1593.25

Store Manager 1 1800 198 8.75 1593.25

Customer Service 1 1600 176 7.75 1416.25

Total 12214.75

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5.3 Task Specifications

Position Main Responsibility

Chief Executive Officer  Making major cooperate decision.
 Managing overall operation.
 Taking care of business assets.
Accountant  Manage all accounting transactions.
 Handle monthly, quarterly and annual
closings.
 Compute taxes and prepare tax
returns.

Billing Clerk  Create and send invoice to customer

 Update account report
 Answer customer queries
Marketer  Increase sales of products or
services.
 Grow a company’s market share.
 Build awareness about a brand.

Advertiser  Conducting market research.

 Collaborating with the sales.
 Create an advertising campaign.
Store Manager  Recruiting, training and supervising
staff
 Managing store budget
 Overseeing pricing and stock.
Customer Service  Listen to customers' concerns, issues
and questions.
 Maintain a positive attitude and calmly
respond to customers' complaints.

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6.0 PROPOSED BUDGET

6.1 Capital Cost

No. Type Of Equipment Quantity Price Total RM

Fixtures and Fittings

Manager's Chair 1 RM150.00 RM150.00

Staff chair 3 RM60.00 RM180.00

Manager's Desk 1 RM350.00 RM350.00

1. Air Conditioning 3 RM3000.00 RM9000.00

Phone 2 RM70.00 RM140.00

Cabinet 1 RM500.00 RM500.00

Bar Counter 1 RM400.00 RM400.00

Item Rack 10 RM500.00 RM5000.00

Equipment

Chiller 4 RM4000.00 RM16000.00

2. Ice Cream Freezer 2 RM3000.00 RM6000.00

Computer 3 RM5000.00 RM15000.00

Receipt printer 2 RM200.00 RM400.00

RM53,120

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6.2 Cost Category

COST CATEGORY Quantity Sale Price (RM) Total

Bread 200 RM3.70 RM3.70
Sweet Flavoured Bun 400 RM1.20 RM220
Spicy Bun 400 RM1.80 RM360
Layer Cake 400 RM1.00 RM200
Potato Chips 500 RM2.50 RM1,250
Cheezy Snack 500 RM2.00 RM1000
Spicy Snack 500 RM2.00 RM1000
Veritable Snack 500 RM2.00 RM1000
Instant Noodles 700 RM1.10 RM770
Mineral water 1000 RM2.00 RM1,800
Carbonate Drink 500 RM2.50 RM1000
Isotonic Drink 500 RM2.50 RM1000
Caffeine Drink 600 RM3.00 RM1,300
Dairy Product (Drink) 600 RM2.00 RM1,000
Cigarette 400 RM15.00 RM4,800
Candy 500 RM1.00 RM450
Chocolate 500 RM7.00 RM2,250
Panadol 200 RM5.00 RM900
Cough Syrup 200 RM10.00 RM700
Cone Ice Cream 400 RM3.00 RM900
Pop Sickle 400 RM2.50 RM600
Ice cube 500 RM2.70 RM1350
Lighter 100 RM1.70 RM170
TOTAL RM 31580

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6.3 Overhead Cost

Type of cost PRICE PER MONTH PRICE PER YEAR

Rent shop RM2000.00 RM24000
Electrical RM700.00 RM8400
Water RM70.00 RM840
Maintenance machine RM 100.00 RM1200
Permits license per year RM 250.00 RM3000
Advertising RM 250.00 RM3000
Internet RM180.00 RM2160
TOTAL RM3,550 RM42600

6.4 Labour Cost

WORKER NUMBER OF WORKERS SALARY Per Year

Chief Executive Officer 1x person month RM2,800 RM33,600
Accountant 1 x person month RM2200 RM26,400
Billing Clerk 1 x Person month RM1,600 RM19,200
Marketer 1 x Person month RM2,000 RM24,000
Advertiser 1 x Person month RM1,800 RM21,600
Store Manager 1 x Person month 1,800 RM21,600
Customer Service 1 x Person month RM1,600 RM19,200
TOTAL RM13800 RM165,600

6.5 Total Cost Operation

Cost per months Cost per year

RM3550 + RM13800=RM17350 RM208,200

6.6 Profit Cost

Cost per months Cost per year

RM31580 - RM13,080=RM18,500 RM222,000

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6.7 Net Profit Cost

Cost per months Cost per year

RM18500-RM17350=1150 RM22000- RM208200= RM113,800

Total investment of in first year B=RM 391400

Profit Interest Rate First Year

RM113,800/222000x 100%=51.26%

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6.8 Cash Flow

The main costs associated with the start-up are:

Equipment RM66,200, a total investment of in first year RM 391,400 and table in above data have
been assumed putting these assumptions into a cash flow forecast produces the following results:

Year
1 2 3 4 5 Total

Cash Inflows
Investment 391400
Credit sales 425580 370,000 310,000 420,000 370,000
Total Inflows 425,580 370,000 310,000 420,000 370,000 RM1,895,580
Cash outflows
Rent shop (1 per Year) 24,000 24,000 24,000 24,000 24,000
Electrical 8,400 8,400 8,400 8,400 8,400
Water 840 840 840 840 840
Maintenance machine 1,200 1,200 1,200 1,200 1,200
Permit license 3,000 3,000 3,000 3,000 3,000
Advertising 3,000 3,000 3,000 3,000 3,000
Internet 2,160 2,160 2,160 2,160 2,160
Labour
Chief Executive Officer 33,600 33,600 33,600 33,600 33,600
Accountant 26,400 26,400 26,400 26,400 26,400
Billing Clerk 19,200 19,200 19,200 19,200 19,200
Marketer 24,000 24,000 24,000 24,000 24,000
Advertiser 21,600 21,600 21,600 21,600 21,600
Store Manager 21,600 21,600 21,600 21,600 21,600
Customer Service 19,200 19,200 19,200 19,200 19,200
Total outflows 208,200 208,200 208,200 208,200 208,200 RM1,041,000

NET CASH FLOWS 217,380 161,800 101,800 211,800 161,800 RM854,580

Opening balance - 217,380 379,180 480,980 692,780

Closing balance 217,380 379,180 480,980 692,980 854,580

Total Inflows – Total outflows = Net cash flows

Closing Balance = Opening balance + Net Cash Flows

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6.9 Cash Flow Diagram

6.10 Future Value

Year 1

FV = 𝑃𝑉 (1+i) n

FV=391,400 (1+0.5126)1 =𝑅𝑀 592,031.64

Year 2

FV = 𝑃𝑉 (1+i) n

FV=391,400 (1+0.5126)2 =𝑅𝑀 895,507.0587

Year 3

FV = 𝑃𝑉 (1+i) n

FV=391,400 (1+0.5126)3 =𝑅𝑀 1,354,543.977

Year 4

FV = 𝑃𝑉 (1+i) n

FV=391,400 (1+0.5126)4 =𝑅𝑀 2,048,883.22

Year 5

FV = 𝑃𝑉 (1+i) n

FV=391,400 (1+0.5126)5 =𝑅𝑀 3,099,140.758

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6.11 Double Declining Balance (DDB) Depreciation

2
Depreciation rate, 𝑑=𝑛, 𝑛=𝑡𝑜𝑡𝑎𝑙

2
Year 𝑑=5, = 0.4

𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 𝑜𝑟 𝑦𝑒𝑎𝑟, 𝐷𝑡=(1−𝑑)𝑡−1

𝐵=𝐵𝑎𝑠𝑖𝑐 𝑐𝑜𝑠𝑡

t= Year

𝐷𝑡=(0.4)( 391,400)(1−0.4)5−1

=𝑅𝑀 375,744

Declining Balance Method (DB)

Where R= The depreciation rate and needed

Depreciation 200%

EOY D BV
0 - 391,400
1 391,400(2/5) =156,560 391,400-156,560=234,840
2 234,840 (2/5) = 93,936 234,840 -93,936=140,904
3 140,904 (2/5) =56,361.6 140,904 -56,361.6= 84,542.4
4 84,542.4 (2/5) =33,816.96 84,542.4 -33,816.96= 50,725.44
5 50,725.44 (2/5) =20,290.176 50,725.44 -20290.176= 30,435.264

As a conclusion in this project we learn that the convenience store need to use the life cycle cost
(CLC) so that we can calculate and estimate the cost needed to start a convenience store and
proceed to calculate estimate value of the store until 5 years in the future to avoid the profit to
decrease a lot so that we can keep the profit to positive net profit. By using the depreciation
formula, we can calculate the declining of the depreciation and the increase of value of asset after
depreciation is being deducted because you will pay less tax due to the smaller taxable income.
This give us more flexibility in term of managing the cash flow because we need more money to
operate the business since the business is still new.

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