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.3 BREAKDOWN STRUCTURE

Group Project

1.0 Project 2.0 Product Specification 3.0 Machine Selection 4.0 Cost & Profit Analysis 5.0 Outcome

1.1 Product 2.1 Material 3.1 Type of 4.1 Estimate the

Selection Selection Machine 5.1 Final Report
total cost per unit

2.2 Production 3.2 Machine

1.2 Draft 4.2 Sale Price
Process Cost 5.2 Slide Show
Proposal

3.3 Alternative 4.3 Profit

1.3 Revised 2.3 Production
of Machine Margin
Proposal Time

3.4 Comparison
of machine 4.4 Break Even

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1.5 Moto
To represents our target and ensure that our service always consistent meet our
customer requirement, we always stand to our motto:

In common teamed to make something great

1.6 Group Logo

Figure 1.6 Mechanical Inventor Designers (M.I.D) Group Logo

Mechanical Inventor Designers (M.I.D) team is term our group logo. These group
consisting of 5 members. Four man and one women power. These group is very charismatic
and committed to resolve all task and issues. Incorporated their work and mission entrusted
with great success.

1.7 Design Process

The engineering design process is a multi-step process including the research,

conceptualization, feasibility assessment, establishing design requirements, preliminary
design, detailed design, production planning and tool design, and finally production. The
sections to follow are not necessarily steps in the engineering design process for some tasks
are completed at the same time as other tasks. This is just a general summary of each step of
the engineering design process. The design process is clinical, meaning that engineers repeat
the steps many times as needed, to make improvement [S. Khandani, 2005].
The path and overall approach that being used, the step and methodology of the design
project have been outline for the design process in order to ensure the project successfully
complete. The design process is involved five stages to follow before fabricate the product.

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2 INTRODUCTION
2.1 INTRODUCTION ON PRODUCT

The office is a popular plane for forming friendships and even finding lovers. But these
days, some peoples deepest office attachment is to their chairs [The Juggle, 2016].

Figure 2.1 Office Chairs

Figure 2.2 another Office Chair

In that case, our group come up with an idea to design a Portable Office Chairs which
is inspired from Portable Office Chairs as shown in Fig 1.3. The idea of using concept of Office
Chairs is because to make the product is portable, ergonomics and easy to handling.

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We are a group of engineers that assigned to perform a new product cost or profit
analysis. In this modern era, our daily life has been simplified with the help of new invention
product. Yet much of this invention still has room for improvement, especially in term of its
design and the quality of the material. For example, to reduce the cost of the product without
compromising the quality of the product and the price.

Figure 2.3 Ergonomic Portable Office Chair

As employees put in longer hours at their desks, bad office chairs are a big problem
[Sue Shellenbarger, 2011]. Many employers provide the same chair for everyone, but
employees fail to adjust them to fit. Mostly companies likely to cutting costs, many people are
stuck with cast-off chairs that do not fit, or chairs so old that they offer little support.

In this project, we are particularly interested in an office chair that is matched with the
above criteria. There are many different styles and types of office chair that exist in the market.
The office chair that exists in the market made from a variety of materials. Through the
modification and improvement, we hope that the new design has a better quality and also has
minimum production cost. Thus, able to achieve the win-win situation between producer and
consumer.

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2.2 Problem Statement

Before this, this product just only uses in management system such as at office and
administrative. Now, we want to bring this product for industry, educational and Small Medium
Enterprise (SMEs) department. Where product is portable size, easy to bring anywhere, easy
to use, and ergonomic.

2.3 Project Objective

The main objective of this project is to design a new office chair that easy to handle,
cheap, ergonomic and user friendly at the affordable price

2.4 Project Scope

The scope in this project is: -

i To produce Office Chair for industry, educational system, and small medium
enterprise (SMEs).
ii To make 3D modelling of the design using solid-work modelling software.
iii To come out with engineering drawing of this office chair.

2.5 Product Significance

To help and give aesthetic value of product to industry, educational system department
or Small Medium Enterprise (SMEs). Before this we know that, a person use an office is not
suitable and do not give ergonomic value to itself. It made a people not seat in comfortable. It
need more energy to handle conventional office chair. From here, we get the solution to help a
person or worker who mostly seat in office chair with easy handling and comfortable. Our
product is friendly user because it is comfortable, easy to use, in appropriate design and can
bring everywhere their like.

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3 MATERIAL
3.1 MATERIAL SELECTION

To make this office chair, some research has been done. In this part will be focusing on
the material that will be used to make office chair so that the user can have its in the most
comfortable ways. What is the most suitable material that should be used to make it? Why is
the particular material is been chosen? How to make sure that is the perfect material to be used?
For office chair there is eight different part. All of the detail will be explain more.

1. Back

2. Arm pad

3. Seat

4. Frame
5. Height Adjustable
6. Absorber
7. Base
8. Wheel

Figure 1 - office chair

1. Back
For this part the material chosen is wood covered with cushion. The first
type of material used is wood. Then, the second layer will cover with wool. The
wool will be used as a base of the cushion. And will be have a cover to make its
more beautiful and sold able. Wool is chosen because of this texture and its
softness that will give the user comfortable chair while doing the work.

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2. Arm Pad -
In this part the most suitable material is plastic. This is because plastic
is much cheaper than steel. Even though steel have more strength that plastic
but in this arm pad it did not required too strong material. Therefore the material
that were very suitable is plastic.

3. Seat
Every human wanted to find the most comfortable and suitable office
chair in order to make them more energize. The material that will be used same
as (1- Base).

4. Frame
This is the most crucial part of the chair. Because of its strength, frame
is the structure that will support the load. It required to support different load
even the highest loads. From the research that has been done steel is the most
suitable and reliable material to used.

5. Height Adjustable
There are two different type of material that will be used. First is plastic
and second is steel. Steel to support the movement that will make if the height
is changing. And the plastic is used to make a handle to the adjustable.

6. Absorber
The material is used same as the material used to make the handle of the
adjustable (5 height adjustable) but is softer. This is because of the absorber
will absorb impact if anything bad happen.

7. Base
Plastic will be used to make this part of the office chair. The same type
of plastic used for (2 arm pad).

8. Wheel
The same plastic used as (7 base) is selected to make this part.

NUM PART MATERIAL

1 Back Wood and Cushion
2 Arm Pad Plastic
3 Seat Cushion
4 Frame Steel
5 Height Adjustable Steel and Plastic
6 Absorber Plastic
7 Base Plastic
8 Wheel Plastic

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4 PRODUCTION PLAN
4.1 PRODUCTION PROCESS

STAGE 1 (BACK) STAGE 2 (ARM PAD)

START RAW MATERIAL: RAW MATERIAL:

CUSHION PLASTIC
PROCESS: PROCESS:
1- Cutting the material to make the 1- Cut the raw material to the
cover then sew it. desired shape.
2- Stuff the wool into the cover 2- Bend it to form a curve
3- Sew it to close them shape.
STAGE 5 (HEIGHT 4- End 3- End
ADJUSTABLE)
RAW MATERIAL:
STEEL &
HJHNJHJBJBHJBBP
LASTIC STAGE 4 (FRAME) STAGE 3 (SEAT)
PROCESS:
RAW MATERIAL: RAW MATERIAL:
1- Cut the steel into a
STEEL CUSHION
desired length. PROCESS: PROCESS:
2- Cut the plastic into the 1- Cut the raw material 1- Cutting the material to make the
desired shape and form into a desired shaft cover then sew it.
it into handle shape. height. 2- Stuff the wool into the cover
3- Join the steel and the 2- Surface finishing 3- Sew it to close them
plastic handle. 3- end 4- End
4- End

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STAGE 6 (ABSORBER) STAGE 7 (BASE) STAGE 8 (WHEEL)

RAW MATERIAL: RAW MATERIAL: RAW MATERIAL:
PLASTIC PLASTIC PLASTIC
PROCESS: PROCESS: PROCESS:
1- Cut the raw material into an 1- Cut the raw material into a 1- Cut the raw material into a
absorber shape. rectangular shape. round shape.
2- Use compact machine to 2- Use stamping process to 2- Use stamping process to
make the tread. make hole. make hole.
3- End 3- End 3- Put the screw to fasten the
two round shape to make a
wheel
4- End

END STAGE 9
(ASSEMBLY)

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4.2 PRODUCTION TIME FOR EACH PROCESS

For this time consuming. Each part of stage have a different time consuming. To
plan the time need for each process, it consider the step of each stage taken.
Therefore the table below will show the time planning to make only 1 office chair.

NUM PART TIME CONSUMING

1 Back 15 Minutes
2 Arm Pad 10 Minutes
3 Seat 15 Minutes
4 Frame 10 Minutes
5 Height Adjustable 15 Minutes
6 Absorber 10 Minutes
7 Base 10 Minutes
8 Wheel 15 Minutes
9 Assembly 30 minutes

Total time = 130 minutes / 2 hours 17 minutes

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5 MACHINE ANALYSIS

Introduction
This section is about literature review of machine analysis. Since this is an innovation
era, there are a lot of machine produce to help and reduce human activities in manufacturing
sector as well as increasing the production efficiency. This research is focusing on machines
that involve in office chair manufacturing process and its cost. So, it is important to understand
the fundamental and basic concept of office chair manufacturer process.

5.1 Types of Machines

There are several types of machine that involves in office chair manufacturing process.
Each machine has its own significant due to its special features and capabilities. This is because
an office chair consists of several sub-assembled parts to become a complete office chair such
as arm rest and body frame. Type of machine that involves in office chair manufacturing
process is stated as following.
a) Seat shaping machine
b) Super surface planer machine
c) Automatic tenner machine

5.1.1 Seat Shaping Machine

Figure 1: Seat Shaping Machine

Generally the main function of this machine is to make the shape of chair by cutting
process. There are several parts of main components that use this machine such as seat and
back rest. Besides, there are many types of seat shaping machine due to various shape demand
and materials used in a chair. One of them is automatic woodworking rotary shaper which is
used to make rounded shape of seat using wood as raw material. Furthermore, this machine
also can provide oval and rectangular shapes of seat. Since material of back part is wood, it is
a suitable machine in office chair manufacturing. This picture below shows one of the examples
of seat shaping machine.

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5.1.2 Super Surface Planer Machine

This machine is used for finishing part in manufacturing of an office chair. This machine
can plan a very fine shaving from the surface of work piece much better than finely hand tuned
plane. This machine is quiet popular among furniture makers ,window and doors makers and
timber makers due to the capabilities of this machine that can provide smooth plane of work
piece. This picture below shows one of the examples of super surface planer machine

Figure 3: Super Surface Planer Machine

5.1.3 Automatic Tenner Machine

Figure 4: Automatic Tenoner Machine

Generally, this machine has same function as seat shaping machine because tenoner
machine also used for cutting purposes. Mostly tenoner machine is designed for automatic
cutting both ends of work piece to produce rectangular and round tenons based on shape
demand. Another special feature of tenoner machine is applicable for producing various
directions of tenons such as horizontal, vertical and bevelled. This is useful to make any slotting
parts in an office chair especially for legs of chair. Since it is suitable for steel cutting process,
it is suitable office chair manufacturing. This picture below shows one of the examples of
tenoner machine

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5.2 MACHINE CAPACITY

Machines Capacity (mm)

Machines
1 2 3
Seat Shaping Machine 3048x3048x914 600x900x1000 400 dx1300 L

Super Surface Planer Machine 25' cutting capacity 250x165x180 20' cutting capacity

Automatic Tenoner Machine 100 280 -1850 900

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5.3 MACHINE BRAND

Machine Brand
Machines
1 2 3
A&B 505 Loc-Drive Direct Drive Milling machine CNC 6090
Seat Shaping Machine Sinoeuro SEFm -1300
Shaper router

Super Surface Planer Machine Extrema Pro EP- 20

woodmaster 725 s Super Meca
Single sided planer

Automatic Tenoner Machine zhiyang WH-CNC900-A

MX3110 Double end tenoner Excel Luck ERMD6018E
Tenon Machine
woodworking machines

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5.4 POWER CONSUMPTION

Power Consumption (kW)

Machines
1 2 3
Seat Shaping Machine 2.23 1.5 31.7

Super Surface Planer Machine 2.23 2.2 3.73

Automatic Tenoner Machine 2.2 31.75 3.1

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6 COST OF MACHINE
6.1 OWNERSHIP COST, OPERATION COST, AND MAINTENANCE COST

Cost of machine
The fundamental machine such as seat shaping machine, super surface planer machine, and
automatic tenoner machine are used to produce office chair. The ownership, annual operation
cost, annual maintenance cost, lifespan and salvage value of each type of machine with its
alternative are illustrated in the Table 1. These data is important for us to select the proper
machine according the economy analysis result.

Table 1: Cost of Seat Shaping Machine

Seat Shaping A&B 505 Loc-Drive Milling machine Sinoeuro SEFm -
Machine Direct Drive Shaper CNC 6090 router 1300

Ownership, RM 1250 86721.00 130081.5

Annual operation 250 17350 26050
cost, RM/year
Annual 100 6900 10400
maintenance cost,
RM/year
Lifespan, years 2 10 20
Salvage Value, 0 8000 1000
RM

The seat shaping machine model Sinoeuro SEFm-1300 is the most expensive among the
three of its ownership cost. This is due to the fully automatic function machine involved
more complex design. Thus, this is expensive than the others. The seat shaping machine
model 505 Loc-Drive incur higher operation cost because it is a semi-automatic machine.
So it needs at least two operator to control the machine from time to time.

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Table 2: Cost of super surface planer machine

Super Surface woodmaster 725 s Super Meca Extrema Pro EP- 20
Planer Machine Single sided planer

Ownership, RM 22321.99 22305.00 20000.00

Annual operation 4500 4500 4000
cost, RM/year
Annual 2250 2230 2000
maintenance cost,
RM/year
Lifespan, years 12 12 11
Salvage Value, RM 1000 1000 500

The super surface planer machine model woodmaster 725s has the highest ownership cost
while the model extreme pro ep-20 is the least. The highest operation and maintenance cost
is model super meca and woodmaster 725 s respectively.

Table 3: Cost of automatic teoner machine

Automatic MX3110 Double Excel Luck zhiyang WH-

Tenoner Machine end tenoner ERMD6018E CNC900-A Tenon
woodworking Machine
machines

Ownership, RM 34688.40 130081.50 86721.00

Annual operation 7000 26050 17350
cost, RM/year
Annual 3460 13008 8670
maintenance cost,
RM/year
Lifespan, years 10 20 15
Salvage Value, 3000 2500 1000
RM

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The ownership cost of automatic teoner machine model excel luck RMD6018E is the most
expensive one among the three. The machine model CNC900-A incur the most operation
and maintenance cost.

7 MACHINE SELECTION
The machine selection is determined according the present worth of the machine. Let assume
the MARR (minimum attractive rate of return) = 10%. The formula that used to calculate the
annual worth is shown as below:
AW= - ownership cost (A/P, 10%, n) - operation cost- maintenance cost- salvage
value (A/F, 10%, n)
Where n is the lifespan of the machine.
Seat Shaping Machine:
I) A&B 505 Loc-Drive Direct Drive Shaper

0 1 2

RM 1250 RM 350 RM 350

Annually cost = RM 250 /year + RM 100 /year

Annually cost = RM 350 /year

AW= -RM 1250 (A/P, 10%, 2)- RM 350- 0

AW= - RM 152.63

II) Milling machine CNC 6090 router

Annually cost = RM 17350 /year + RM 6900 /year
Annually cost = RM 24250 /year

AW= - RM 86721(A/P, 10%, 10)- RM 24250+ RM 8000 (A/F, 10%, 10)

AW= - RM 37858

III) Sinoeuro SEFm -1300

Annually cost = RM 26050 /year + RM 10400 /year

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Annually cost = RM 36450 /year

AW= - RM 130081.5 (A/P, 10%, 20) - RM 36450 + RM 1000(A/F, 10%, 20)

AW= - RM 51717

Super Surface Planer Machine:

RM 1000

0 12

RM 22321.99A A A A A A A A A A A A

I) Woodmaster 725 s
Annually cost = RM 4500 /year + RM 2250 /year
Annually cost = RM 6750 /year

AW= - RM 22321.99 (A/P, 10%, 12) - RM 6750 + RM 1000(A/F, 10%, 12)

AW= - RM 9980

II) Super Meca

Annually cost = RM 4500 /year + RM 2230/year
Annually cost = RM 6730 /year

AW= - RM 22305 (A/P, 10%, 12) - RM 6730 + RM 1000(A/F, 10%, 12)

AW= - RM 9958

III) Extrema Pro EP- 20 Single sided planer

Annually cost = RM 4000 /year + RM 2000 /year
Annually cost = RM 6000/year

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AW= - RM 20000 (A/P, 10%, 11) - RM 6000 + RM 500(A/F, 10%, 11)

AW= - RM 9053

Automatic Tenoner Machine:

I) MX3110 Double End Tenoner Woodworking Machine

RM 3000

0 10

RM 34688.4 A A A A A A A A A A

Annually cost = RM 7000 /year + RM 3460 /year

Annually cost = RM 10460 /year

AW= - RM 34688.40(A/P, 10%, 10) - RM 10460+ RM 3000 (A/F, 10%, 10)

AW= - RM 15916
II) Excel Luck ERMD 6018E
Annually cost = RM 26050 /year + RM 13008 /year
Annually cost = RM 39058 /year

AW= - RM 130081.5(A/P, 10%, 20) - RM 39058+ RM 2500 (A/F, 10%, 20)

AW= - RM 54299

III) Zhiyang WH-CNC900-A Tenon Machine

Annually cost = RM 17350 /year + RM 8670 /year
Annually cost = RM 26020 /year

AW= - RM 86721 (A/P, 10%, 15)- RM 26020+ RM 1000(A/F, 10%, 15)

AW= - RM 37392

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Table 4: Present worth of each machine

Seat Shaping A&B 505 Loc-Drive Milling machine Sinoeuro SEFm -
Machine Direct Drive Shaper CNC 6090 router 1300
Present worth, RM - RM 152.63 - RM 37858 - RM 51717

Super Surface Woodmaster 725 s Super Meca Extrema Pro EP-

Planer Machine 20 Single sided
planer
Present worth, RM - RM 9980 - RM 9958 - RM 9053

Automatic Tenoner MX3110 Double Excel Luck ERMD Zhiyang WH-

Machine End Tenoner 6018E CNC900-A Tenon
Woodworking Machine
Machine
Present worth, RM - RM 15916 - RM 54299 - RM 37392

The alternative machine models with the lowest AW cost is selected. Thus, for seat shaping
machine 505 Loc-Drive Direct shape model is selected. The model of Extrema Pro EP- 20
Single sided planer surper surface planer machine is selected and the automatic tenoner
machine of MX3110 is selected since the AW of its costs is the lowest.

8 COST ANALYSIS

According to theresent worth analysis that had been made in the section 7, we choose
these few machines for machining processes:

a) Seat Shaping Machine (A&B 505 Loc-Drive Direct Drive Shaper)

b) Super Surface Planer Machine (Woodmaster 725 s)
c) Automatic Tenoner Machine (MX3110 Double End Tenoner Woodworking Machine)

8.1 ESTIMATE TOTAL COST PER UNIT

In order to calculate for the total cost of an office chair, we need to know what is the fixed
cost and the variable cost for the whole production costs. The total cost of a unit of office
chair is calculate with the formula of:
Total cost = fixed cost + variable cost
Total cost per unit= Total cost / total unit of office chair produced

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Fixed cost:
i) Management and Administrative Expenses
For the management and administrative expenses is estimate to be RM 5000.00.
ii) Factory expenses
The factory expenses (rental=RM 2000, insurance= RM1500, transportation= RM 1000) of
our manufacturing company are RM 4500 per month.

iii) Utilities Bills

The power consumption of the selected machines are 2.23kW (Seat Shaping Machine), 2.23kW
(Super Surface Planer Machine), and 2.2kW (Automatic Tenoner Machine). In this case, our
company is operate 8 hours per days and opening for only 25 days per month. Thus, the total
power consumption of our company is calculated as:
Total power consumption= (2.23 + 2.23 + 2.2)kW x 8 hours/day x 25 days/month
Total power consumption= 1332kWh
Table 9: Electricity Bills
Domestic Tariff, kWh Power consumption, kWh Rate, RM Amount, RM
200 200 0.218 43.6
100 100 0.334 33.4
300 300 0.516 154.8
300 300 0.546 163.8
Onwards 432 0.571 246.67
Total RM 642.27

According the Table 9 shown that the electricity bills is about RM 642.27 per month. Since
this is a manufacturing company so that the water is not consumption that much like electricity
does. Thus, we assume that the water bills is about RM 50 per month.

Utilities bills= RM 50 /month + RM 642.27 /month

Utilities bills= RM 692.27 / month

Variable Cost:

I) Raw material
Table 10: Cost of raw material

Raw material Price, RM/unit Quantity Price, RM

Steel 10 1 10

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Cushion 15 1 15
Plastic 5 1 5
Total RM 30

II) Direct labour cost

In our manufacturer company, the labour is paid RM 10 for each office chair they
produce. Since, the total direct labour cost is RM 10Q. Where Q is the number of office
chair they produce.

To calculate the total cost per unit of office chair:

Assume that our company produce 1000 units of chair per month.

Total cost = fixed cost + variable cost

Total cost per unit= Total cost / total unit of office chair produced
Total cost= (RM 5000+RM 4500+RM 692.27) + (RM 30Q + RM 10Q)
Total cost=RM 10192.27 + RM 40Q
*** Total cost per unit= (RM 10192.27 + RM40 x1000) / (1000)
Total cost per unit of office chair = RM 50.19 /unit

8.2 SALES PRICE AND PROFIT MARGIN

Our company is expected to sold 1000 units of office chair in a month and come with the
profit of at least RM 50 000.

Profit= Total revenue Total cost

RM 50 000 = Sales price x 1000 RM 50.19 x 1000

Sales prices = RM 100.19

Since the lowest selling price could be RM 100.19, to have more profit we decided to adjust
the sales prices to RM 130 per unit of office chair.

Profit margin = Total revenue Total cost

Profit margin = Sales prices x Q Cost per unit (Q)

Profit margin = RM 130 x 1000 RM 50.19 x 1000
Profit margin = RM 79180 per month= RM 957720 per year

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8.3 BREAKEVEN ANALYSIS

Breakeven point is the number of chairs that being sold in which the total revenue just same
with the total costs. In other words, that is no any profit making if the company have not sales
more than the breakeven numbers.
Breakeven happen in the situation of zero profit, thus
Total revenue= Total cost
RM 130 x Q = RM 10192.27 + RM 40Q
RM 90 x Q = RM 10192.27
Q = 113.2
Q= 114 units of office chair
From the calculation, we find that we need to sell a minimum of 114 office chairs in order to
achieve breakeven.

9 CONCLUSION
After done this project, we finally realized that getting into a business, or selling products
and services, is not an easy task. There are a lot of factors that need to be determined in order
to gain profit from selling any products or services. Few factors such as marketing strategy,
price of product, sales location, number of customers who wish to buy our product determine
whether our business really can make profit or vice versa.

In this project, we choose office chair as our sales product since office chair is available
in everywhere such as corporate offices, administrative offices, government offices and so on.
We had calculated that the average cost for making 1 chair is about RM100.19. In order to
achieve breakeven, we need to sell at least 114 office chairs to sustain the business if we sell a
chair with the price of RM 130. As the selling price increase, the number of chairs to breakeven
will decrease.

Finally, we hope that our office chairs that being sold really can maximize our profit
when more customers wish to buy our product. When our profit gets more and more, we need
to pay more tax and this will contribute to our countrys economy as well.

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10 REFERENCES
1. Sullivian, William G (2015), Engineering Economy, Sixteenth Edition, Upper Saddle
River, NJ, Pearson Higher Education Inc.
2. Blank, Leland, and Tarquin, Anthony, (1976), Engineering Economy, Mc Graw Hill
3. Seat Shaping Machine. Retreived from: https://www.alibaba.com/showroom/heal-
seat-shaping-machine.html
4. Super Surface Planer Machine. Retreived from:
https://www.alibaba.com/showroom/super-surface-planer.html
5. Automatic tenoner Machine. Retreived from: https://www.alibaba.com Machinery
machine tenon machine
6. Commercial Industrial Electrical Tariff In Malaysia. Retreived from:
https://www.tnb.com.my/commercial-industrial/pricing-tariffs1
7.

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