Project Feasibilty Study and Evaluation - Aj. Chaiyawat Thongintr. Mae Fah Luang University (MFU) 2010

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Project Feasibility Study and Evaluation

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Mae Fah Luang University, ChiangRai, Thailand
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Member
Sri Cha Learn Recycling Company
Miss Pairor Boonchaloei 4931203077

Mr Saranyu Eiamchuen 4931203103
Miss Sukanya Nuamthong 4931203115
Miss Natthaya Piamsuwan 4931203130
Mr Ampon Muangmoon 4931203133
Business Administration
Mae Fah Luang University

ChiangRai, Thailand
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Content
Page
Chapter 1: Introduction
 Background and Significance of the Project 1
 Project Objectives 5
 Benefits of Project 5
 Activities/Time Frame 6
Chapter 2: Industry Profile

 Nature of Industry 7
 Situation of Industry 9
 Vision of the company 12
 Mission 12
 Product/Service 13
 Corporation Level 17
 Business Level 18
 Functional Level 19
Chapter 3: Market Feasibility Study

 General Environment Analysis
 Political 21
 Economy 22
 Social and Environment 23
 Technology 24
 Competition Analysis (3C Analysis)
 Competitor Analysis 27
 Customer Analysis 30
 Competitive Analysis 31
 Marketing Mix Strategy 33
 Sales Forecast/Profit Estimation 35
 Conclusion 40
Chapter 4: Technical Feasibility Study

 Production and Operations Analysis
 Product Characteristics 41
 Specification, Feathers, Dimension, Life Time 42
 Production/Services Process 44
 Location 46
 Facility Layout 46
 Industrial Cost 48
 Machine/Tools/ Equipments 50
 Logistics Management 52
 Cost of Investment 54
 Administration Cost 56

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Page
Chapter 5: Financial Analysis

 Income Statement 59
 Cash Flow 64
 Balance Sheet 69
 All financial Statements are in monthly base 74
Chapter 6: Risk Management

Business Risk 86
Operation Risk 87
Market Risk 87
Financial Risk 87
Management Risk 89
Risk Assessment 90
Chapter7: Summary 93

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List of Table
Page
Table 1 Quantity of solid waste by province of northern region 3

Table1.1 Quantity of solid waste by district and municipality (2006) 4
Table2.1 Quantity of solid waste by district and municipality (2005) 10
Table 2.2 Company’s competitors in Chiang rai 11

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List of Figure
Page
Figure 2.1 Steel 13
Figure 2.2 Plastic 14
Figure 2.3 Bottle 14
Figure 2.4 Paper 15
Figure 2.5 Metal 16
Figure 3.1 Product 33
Figure 3.2 Price 34
Figure 3.3 Place 34
Figure 4.1 Inside the company 46
Figure 4.2 Outside the company 47
Figure 4.3 Outside the company 47
Figure 4.4 Hydrolic Nck 50
Figure 4.5 Scale-VW Platform 50
Figure 4.6 Truck 50
Figure 4.7 Truck Digital Weighting Machine 51
Figure 4.8 Metal Cutter 51
Figure 4.9 Forklift 51
Figure 4.10 Tractor 51

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CHAPTER 1
Introduction
Background and Significance of the Project
According to quantity of solid waste in Chiang Rai trend to increase

continuously in each year (Table 1, 2 sources: Pollution Control Department, Ministry
of Natural Resources and Environment). Moreover, the government policy (Ministry
of Natural Resources and Environment) create the campaigns to motivate people to
reduce quantity of waste and try to use the recycle products in Thailand. They planed
to have at least 300 junk shops spreading every parts of Thailand. The significant of
waste recycling business in Thailand is to separate the type of waste to the process of
recycling. The high technology is used to manage and try to get the highest profit
from waste. According to the report of Manager online website1 said that 95% of
waste is like the gold. It can generate high income to the business and trend to be high
required from industry in the future. From the information, the company sees this
great opportunity for doing the recycling waste business. The kind of this business
gets the less attention from the entrepreneurs and there is not enough junk shop in
Chiang Rai compare to the other business and quantity of waste in each year. Waste
recycling business is the business that can generate high profits to entrepreneur and
also have high competition in the market. The company should find the interesting
strategy to persuade the customer and suppler. Sri-Cha-Learn company is located in
Maekorn sub district where has the large area for collecting inventories and easy for
transportation. The good location of our store will attract the customer to come to
store with the convenience transportation, clean workplace, and good environment.
The company will start from the small business under SMEs, also stand for the
national’s standard because it should be reliable and valuable. Moreover, the company
will use the high technology and high quality machines for separating wastes and
smooth transportation.
This benefit of this project will be studied the possibility of waste recycling
store in Chiang Rai and try to solve the problems in this business. It can be the
guideline for the company to investment in waste recycling business. The report will
determine in the corporate level, business level and functional level of waste recycling
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store such as cost for equipment, buying price, selling price and costs of operation.
Data from the study can be used to decide in investing in waste recycling store and
reduce the risks that can be occurred.
(1)
* Source: - Manager on line website on June 10, 2008
http://www.manager.co.th/Science/ViewNews.aspx?NewsID=9510000067671

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Provincial Quantity of Solid (ton per day)

Total Municipality Non-municipality
Total 6,121 2,195 3,926
ChaingMai 1,029 495 570
Lumphun 201 78 123
Lampang 385 180 205
Uttaradit 227 76 151
Phrae 261 109 152
Nan 174 51 123
Phayao 252 98 154
ChiangRai 556 198 258
MaeHongSon 111 43 68
Nakhon Sawan 457 172 285
UThai Thani 200 65 135
Kamphaeng Phet 348 78 270
Tak 284 117 167
Sukhothai 324 79 245
Phitsanulok 499 159 340
Phichit 271 88 183
Phetchabun 542 145 397
Table 1: QUANTITY OF SOLID WASTE BY PROVINCE OF NORTHERN

REGION: 2006

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Quantity in ton per day
Area/Region Quantity Percent

ChiangRai Province 181.50 100.00
Muang ChiangRai
ChiangRai Town Municipality 82.00 45.17
WiangChai
WiangChai Subdistrict Municipality 8.00 4.40
ChiangKhong
BunReang Subdistrict Municipality 1.50 0.82
WiangChiangKhong Subdistrict 10.00 5.50
Municipality
Thoeng
BanPlong Subdistrict Municipality 4.00 2.20
WiangThoeng Subdistrict Municipality 3.00 1.65
Phan
MueangPhan Subdistrict Municipality 9.00 4.95
PaDaet
PaNgae Subdistrict Municipality 2.00 1.10
PaDaet Subdistrict Municipality 5.00 2.75
Table 1.1: QUANTITY OF SOLID WASTE BY DISTRICT AND MUNICIPALITY

(CHIANG RAI ): 2005
Source : Pollution Control Department, Ministry of Natural Resources and

Environment

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Project Objectives
1. To study the process of capital requirements in the recycling business.

2. To compute the risk analysis and sales forecast of recycling business.
3. To plan for doing human resource and marketing.
4. To study trend and situation of this business.
Benefits of Project
1. Gathering the information about the process of capital requirements in the

recycling business.
2. Evaluating feasibility and impact of this business.
3. Knowing how to manage human resource and marketing.
4. Understanding the trend and situation of this business.

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Activities/Time Frame
Operation Plan November December January February

- Collecting general data such as price
of products and equipments, supplier,
business processing, etc. from other
junk shops in Chiang Rai.
- Find a suitable location to compute the
budget.
- Market survey
- Marketing Analysis
- Production Analysis
- Financial Analysis
- Risk Management
- Summary

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CHAPTER 2
Industry Profile
Nature of Industry
Recycle means to process old, used items in order that the material can be used
to make new products. Examples of things that are often recycled are glass, plastic,
newspapers, aluminum cans, used motor oil, and batteries. Here, reduce refers to
lessening the amount of items or resources that are consumed, using only the amount
that is needed, and looking for alternatives that will lessen our use. Before you get
new products from recycling, they have to past the process of recycling which start at
the first step required for recycling is collecting recyclable materials from
communities. Today many major cities and larger communities offer a curbside pick
up service for recyclable materials. Families, who recycle items such as paper, bottles
and cans, place the items in recycling collection bins. These bins usually have the
recycling symbol on them. This is one of the most important steps for recycling
because if people do not separate their recyclable materials from their trash then the
materials will not be recycled. Instead they will be sent to the landfill with other trash.
Apart from the items you may recycle at home, many other things such as old tires,
computers, mattresses, cars and more are recycled for parts and materials. The second
step involves processing the recyclable materials. This includes sorting the materials
into groups, cleaning them and getting them ready to be sold to manufacturers who
will turn the materials into new products. Manufacturing is the third step in the
recycling process. Today many products are made out of either total or partial post
consumer (recycled) materials. Many items you may see every day are made from
recycled materials. Newspapers, paper towels, office paper, plastic bottles and
aluminum cans are not only made of recycled materials, but they can also be recycled
again. The last step, but certainly not the least, involves the purchasing of recycled
products. When consumers purchase products that have been made with post
consumer material the recycling process has been completed and can then be repeated.

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Recycling helps reduce the amount of trash that is disposed of in landfills.

Recycling, rather than throwing things away, is also better for the environment and
generates the money.
Source: www.chevroncars.com/learn/wondrous-world/recycling-process

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Situation of Industry
Today the waste industry or waste management company can generate high
profits to entrepreneur. According to the special report of Naewna Newspaper(1)
reported that the amount of General waste is around 36million tons, while "industrial
waste" volume is divided into 22 million tons, 17 million tons of toxic waste and
garbage that become recyclers and the last is "waste recycling" which has around 4-5
million tones. The average waste is increasing by 10-15% a year in Thailand. For
more understanding, we can explain the waste disposal rate will be 1 person per 1 kg /
day. According to quantity of solid waste in Chiang Rai(2) trend to increase
(3)
continuously in each year. Moreover, the government policy supports to reduce
quantity of waste in Thailand and all parties recognize on the product that can be
recycled because it is not just for making money, it can help industry and the world
reduce production costs, environmental problems and reducing waste also. They
planed to have at least 300 junk shops spreading every part of Thailand. Currently,
there is not enough junk shop in Chiang Rai compare to the quantity of waste in each
year. Those are the reasons for establish Sri-Cha-Learn Recycling Company. Sri-Cha-
Learn has recognized on the value of the waste that people throw away to become
money. Based on the value of the merchandise, people will be able to purchase items
that range in cost (number of recycling waste). The company started from the small
business under SMEs, also stand for the standard of Thailand policy because it can
make our store reliable and can stand in the uncertainty economic. Sri-Cha-Learn
Recycling Company showcases innovative recycled-content products and puts you in
touch directly with our manufacturer. Whether you are a wholesale buyer or an
individual consumer, use this catalog to discover a variety of quality recycled-content
products designed with your needs in mind. The recycling process involves a series of
steps to produce new products. The recycle waste businesses make high profit to the
entrepreneurs. Sri-Cha-Learn Recycling Store has to face with high competition.
From the information of Establishment of Demonstrative Environmental Technology
Center report that there are 28 waste stores in ChiangRai included 7 stores registered
in Muang district such as such as ChaingRaiKongKao, Wongpanit, Thairung,
ChaingRaiWera, and SinThai2 which are the main competitors of the company.

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Quantity of Waste in ton per day
Area/Region Quantity Percent

ChiangRai Province 181.50 100.00
Muang ChiangRai
ChiangRai Town Municipality 82.00 45.17
WiangChai
WiangChai Subdistrict Municipality 8.00 4.40
ChiangKhong
BunReang Subdistrict Municipality 1.50 0.82
WiangChiangKhong Subdistrict 10.00 5.50
Municipality
Thoeng
BanPlong Subdistrict Municipality 4.00 2.20
WiangThoeng Subdistrict Municipality 3.00 1.65
Phan
MueangPhan Subdistrict Municipality 9.00 4.95
PaDaet
PaNgae Subdistrict Municipality 2.00 1.10
PaDaet Subdistrict Municipality 5.00 2.75
Table 2.1: QUANTITY OF SOLID WASTE BY DISTRICT AND MUNICIPALITY

(CHIANG RAI ): 2005

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Company’s Competitors
Company’s Quantity of purchasing per day (ton per day)

Province paper Plastic Glass Alumi copper brass steel other Total
name nium
ChaingRai 0.700 0.600 1.500 0.020 0.020 1.100 1.010 0.100 5.050
ChiangRai Town Municipality ChaingRaiKongKao
Wongpanit 1.869 0.460 3.000 0.050 0.060 0.230 2.546 8.215

Thairung 1.092 0.184 1.570 0.280 0.018 0.013 0.201 3.358
ChaingRaiWera 1.200 0.050 1.100 0.100 0.051 0.700 3.201
Wanarom 1.250 0.150 1.880 0.027 0.017 0.009 1.114 4.447
*** 0.153 0.216 0.185 0.037 0.021 0.027 1.760 2.399
SinThai2 2.400 0.047 0.934 0.009 0.005 1.065 4.460
WiangChai Subdistrict *** 0.073 0.037 1.650 0.147 1.051 2.958
Municipality
Pakrohkam Subdistrict ChaLearn 0.100 0.050 0.100 0.200 0.050 0.070 0.570
Municipality RungLuang
*** 0.520 0.020 0.700 0.020 0.020 0.050 1.330
WiangPaPhao Subdistrict *** 0.020 0.030 0.050 0.050 0.010 0.030 1.030 0.050 1.270
Municipality
*** 0.060 0.030 0.560 0.010 0.010 0.350 1.020
ChiangRai Weera 0.020 0.030 1.050 0.010 0.010 0.003 1.020 0.010 2.150
MueangPhan Subdistrict Siriwatthana 0.150 0.050 1.000 0.010 0.005 0.017 0.700 0.050 1.968
Municipality
MaeLao Subdistrict MaeLao 0.030 0.030 0.050 0.002 0.002 0.001 0.500 0.631
Municipality
BanHlar Subdistrict ChaLearnkankah 0.920 0.011 0.002 0.950 1.884
Municipality
Janyouyong 0.240 0.027 1.025 1.026 0.013 2.331
MaeChan Subdistrict ChaLearnPol 1.030 0.050 1.400 0.020 0.550 3.067
Municipality
Jeerenant 1.500 0.500 0.020 0.500 2.520
Maechan ChiangHai 0.036 0.020 0.020 0.720 0.002 0.818
Sirimas 0.604 0.320 1.000 0.008 0.003 0.160 0.350 2.445
MaeSruy Subdistrict *** 0.200 0.120 0.002 0.001 0.010 0.333
Municipality
*** 1.040 0.003 0.002 0.002 0.050 1.097
*** 1.060 0.042 1.102
JadeeLuang Subdistrict *** 0.500 0.020 0.001 0.017 1.020 1.558
Municipality
*** 0.050 0.500 0.020 0.002 0.017 1.350 1.939
BanPlong Subdistrict *** 0.101 0.050 0.137 0.002 1.054 1.343
Municipality
Wiang Teng Subdistrict S.P. recycle 0.100 0.060 1.250 0.004 0.002 0.002 0.950 0.004 2.372
Municipality
Total 28 shops 15.482 4.684 20.641 1.087 0.329 1.668 21.697 0.249 65.836
Table 2.2: COMPANY’S COMPETITORS IN CHIANGRAI
(1)
Source : Naewna newspaper, special report on September 3rd, 2007
“Waste.....treasure of 4 thousand million”
(2)
Table 1: Pollution Control Department, Ministry of Natural
Resources and Environment
(3)
Ministry of Natural Resources and Environment

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Vision of the company
“Be the number one of Waste recycling store in ChiangRai and Northern with
the best service”
Mission
Sri-Cha-Learn Recycling Company will use the high technology and high
quality machines for separating wastes and smooth transportation. The effective
business plans is used in our in store to face the future situation and to tell the
employee for working in the same way. Sri-Cha-Learn Recycling Company also
emphasize on the quality of living of employees which should have good workplace,
safety, social insurance, and satisfied salary. Moreover, we should emphasize on the
customer to response customers need and provide the optimal thing return to customer
as well.

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Product/Service
There are many kinds of recycling waste that our shop purchased to the
process of recycling. The importance factors that we concerns are the safety of
products and human, transportation and regulation. The product that our shop
purchased will be as follow:
Steel
Figure 2.1 : Steel
- short thick steel (Length not exceeding 80 cm.)

- small piece of steel. (Length not exceeding 50 cm.)
- steel screws, thin steel (Length not exceeding 50 cm.)
- sling wire
- steel coil
- penny-shaped steel
- steel rod , steel knife rod
- cast tiny steel , cast large steel
- steel machine, 1 inch steel bar (Length 1 m. or more)
- steel rod 6 length, steel rod 5 length
- car steel

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Plastic
Figure 2.2 : Plastic
- pipe,
- electric devices
- other kids of plastic except plastic bags
Bottle
Figure 2.3 : Bottle
- glass bottles
- color glass bottles
- plastic bottles
- opaque bottles

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Paper
Figure 2.4 : Paper
- cardboard brown box

- colored paper, shoes box
- book paper
- paper digests
- art paper
- bag cement paper
- black and white paper
- notebook paper
- computer paper
- news paper
- box milk paper
- paper digests to coat it one-sided

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Metal
Figure 2.5 : Metal
- can aluminum,
- thick aluminum,
- pump aluminum,
- pliston big aluminum,
- wheel aluminum,
- fryimg pan electricity aluminum,
- buttock frying pan electricity aluminum,
- frying pan aluminum,
- aluminum,
- fire aluminum,
- alloy aluminum,
- some clean aluminum,
- boiler aluminum,
- background edge new aluminum,
- can insecticide aluminum,
- lid aluminum,
- bamboo curtain aluminum,
- mosquito wire screen aluminum,
- large strip copper,
- brass thick Brass thin ,
- boiler brass

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Corporate Level
Sri-Cha-Learn shop is a shop that purchases waste from garbage collectors and small
waste shops to the processing of recycling in the factory. The appropriate strategy for Sri-
Cha-Learn shop is intensive strategies in the market penetration level (present product in
present market) by using attractive points to persuade the customer.
1. Offering the higher price in the beginning period like boom market to persuade the
customer interested in the shop after that the shop will adjust into the regular price.
2. Weighing machine is guaranteed the standard by Ministry of Commerce. Getting the

customer royalty and stand in the national standard.
3. Serving the best service to customer such as delivery. If the customers cannot carry the
waste to the shop, the shop will offer delivery service for them with the fewer fees.

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Business Level
Sri-Cha-Learn shop is a shop that has highly competition environment and

increase continuously. It affects directly to our shop because the customer will do the
business with the shop that give the highest return. The way to stand in the high
competition environment is making the Differentiation Strategy as follow:
Price differentiation: The environment of Sri-Cha-Learn shop has high
competition. The competitors tend to give the customer in the similar prices, give in
the same price or give the highest price from competitors to attract customers. Sri-
Cha-Learn shop will give the price that meet the customer satisfaction such as give
the highest price.
Service differentiation: Giving the highest price to the customer is not
enough. We have to make the customer’s loyalty by creating the impression to the
customer by services such as service satisfaction over quickly, clean and good
workplace or pay money on time Different services will make the great opportunity.
Transportation differentiation: We provide the tracks for deliver the waste
to customer’s factory (more than 15 tons)
Technology differentiation: we provide the high technology for separate type
waste and deliver waste to recycle factory or our customer. We may also use
computer to help in organization processing.

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Functional Level
In Functional level, Sri-Cha-Learn Recycling Store can be divided into 2 parts,

marketing and financial and sales. For the marketing service will concern about
customer analysis to know who are our customers and tell the reason why they will
come to our store. In the part of financial and sales will tell about how to manage the
money of our store and strategies that are used. The details of each strategy as follow:
 Marketing
The advantage of marketing to business is to promote the business to the

customer for sale goods and service, build strong relationship in order to capture value
from customers in return etc. The good marketing should be considered the customer
by which individual or group. The most importance of the good marketing is to
respond customers’ needs though creating the promotions or any strategies to attract
to be attractive.
Marketing Strategies that Sri-Cha-Learn Recycling Store use as follow:
Customer Analysis
Before opening the business, we have to specify the expect customer of our
business at the beginning. Sri-Cha-Learn Recycling Store can divide customer in 2
groups by first the people who come to sell wastes to the company such as scavenger
or small waste recycle store. Second, the recycle factories come to buy the recyclable
waste from the company.
Sri-Cha-Learn is located Maekorn sub district where large area for collecting
inventories and easy for transportation. Moreover, there is Phahon Yothin road pass in
front of the company, the customer will come and see the company easily.
In the high competition environment, the company should do the business with
service mind. The company has to make the royalty and reliable to the customer.

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Marketing mix
Marketing mix is the tools to assist the company in pursuing the customer to
meet company objectives. Before offer anything to customer, the company has to be
carefully managed and controlled. The most importance thing is the company has to
define the target group and meet their need. The marketing mix is apart of the
organizations planning process and consists of analyzing of 4Ps (product, price, place
and promotion)
Sales products
Inviting the customers (scavenger or small waste recycle store) to sells

products to company. To let’s customers know that company can give the highest
price for each product. For recycle factories, company will offer products (separate
type waste) that our company has a wide variety of product.
 Financial and Sales
In investment decision, company will loan the money from bank and
installment the principal and interest. The company will choose fixed rate loan
because interest is not stable. In finance, company will compare the cost of purchasing
goods with cash for purchase the product at the low cost. And, Sell products by cash
to maintain the liquidity of the shop. And prevent the problem of collect dept.

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Chapter 3
General Environment Analysis
Political
The government policy has the direct effect to the company. According to the
campaign of Department of Environment Quality Promotion (DEQP), Ministry of
Natural Resource and Environment has signed cooperation agreements in the
campaign, “Project 45 on plastic bag reduction and power reduction of global
warming". The cooperation received from government agencies and private and
shopping malls, supermarket, convenience and vegetable market and 22 shopping
centers and other government agencies will record the amount of plastic bags used
throughout the project period of 45 days from April 22 is Earth Day to world
environment day. This campaign tries to tell the people to reduce using plastic and tell
them that plastic can be recycled. For example Low Density Polyethylene, (LDPE)
LDPE is the soft plastic that good flexibility and clear. It’s suit for wrap the food,
bakery or pack cool food. LDPE can be recycled to be black bag for garbage,
Carrying bag or trash.

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Economy
In the economy down, but it rises the profit of the waste recycling business.
Incredible, the value of waste recycling business has high to 4 billion baht from the
advanced technology of recycling waste building. The famous waste recycling
business is Wongpanit, said that whether it is business, "waste disposal" or "recycled
garbage" will be the business that grow fast and stability in next 10 years.
From the trend of environmental in limit of quantity of natural resources, the
world trend of reuse or recycle begin in developed countries and now it’s coming to
Thailand. When resources are limited, the waste recycling businesses would become a
future business because people will freight for purchasing of raw materials to produce
products to response the demand and supply of customer. In the future the product
that related to paper, plastic bottles, glass, copper aluminum, etc., will be the high
value product.
Currently, there is a new job that they will be the middlemen for separation
waste before sent to waste shop. This store will buy and sell in return to reuse for the
recycling process. However, before doing business the small entrepreneur must have
place for inventory and capital for purchasing. In this 1-2 years, waste business
become the famous business that foreign pay attention and want to invest.

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Social and Environment
The one interesting project like “Waste Separation project” of Department of

Environment Quality Promotion (DEQP), Ministry of Natural Resource and
Environment is the project that motivates people to separate type of waste before
through away which is a large problem in society. In Bangkok has reached 8.5 million
ton of landfill per day. If we average, one person will cause the volume of waste from
0.8 to 1 kg per day. This campaign, everyone can help together for separation waste. It
can occur in homes, offices and other places in the community. It supports with the
company’s project that try to tell the people that the waste in their hand can be recycle
and they are one of the millions people that save the earth.

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Technology
These days, advances in science and technology, and, invention development

facilities support our lives tremendously well. Technology is an addition that is now
fundamental to each of our lives, the creation of superb quality residential standards
and the production of other goods and services meeting the needs of more and more
people are just two examples to mention. Technological manufacturing systems
produce a number of cheaper and better quality products and also vastly improve the
speed of production. Technology makes it easy and convenient to communicate,
transporting connections between the world's populations to wherever a contact may
be to receive information at any time. The development of technology makes these
life changes are builds a better quality of life - improves conditions of urban society in
the development of the telecommunication systems to provide easier communication,
which is then applied to the facilities within the home, office and personal
technological gadgets.
In Thailand has more amounts of wastes, some waste can be recycling but
some waste cannot, that result in waste disposal in many communities. However
many type of waste can be recycle and reuse, so enabling to be effort to recycling
wastes. There is a campaign to sort waste before disposal to bring. As an example of
PCB recycle technology:
In Thailand, there are many manufacturing import electrical and electronic
equipment. The electrical equipment with components such as IC circuits and wiring
more, some of the equipment can be recycled and some can not be recycled to make
leaving electronic equipment and waste community. However, electronic circuits,
metallic key to sales such as gold, copper, lead, etc. Allowing the circuit to try to
recycle metals separation, important to be left out before and reduce the problem of
environmental contamination from toxic substances circuit of one another. Pollution
Control Department has surveyed the amount of electronic products remains that
occur; the electronic wastes most of the exploration potential in recycling (To sell in
order to take advantage) but there are more electronic wastes that expected to be
included with garbage disposal general. There are many PCB recycling technology in
Thailand. Unicopper Trade Co., LTD discovered and developed the recycling system
electronic circuits; it consists of metal separation to bring metal to be molded

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material. Plastic left from the copy, basic metals separation are sent to remove the
cement plant and in the future may bring scrap plastic, remaining isolated from the
brick made to block construction.
The example of innovation for recycling paper by Mr.Paijitr Sangchai,
managing director of Flex Research Group Co., Ltd. The award-winning National
innovation 2552, said about the creating innovative ideas with the discovery and study
of enzymes for use in recycling paper follows:
We will need to buy new paper pulp. We called the first membrane is made
from wood taken to cooking to remove the ground and then made a pulp and then
bleached out to a white paper. If it is not bleached brown paper, we purchased the
membrane and enter into paper manufacturing process. First we called the new paper,
enough time to go through the paper first, then, also valuable in his address like the
packaging. Corrugated carton can be recycled back to the application, or
photocopying paper, paper type. These were brought back to new. From scrap paper
merchants, he would then collect a mass compressing large. Then sent to the plant
sale paper, paper they are already required by the market because it can be recycled to
100% but it will be another type of paper that this can not be recycled with normal
methods, such as paper that is combined with other materials or plastic stuck. Paper
plant is not popular to buy. Required quality of paper management processes to
acquire these, for example; photocopying paper. He was then taken with the ink color
black stuck. He took the time to spin a new membrane. The black ink will not
eliminate all. It must be in the process of bringing out ink. Star from the research
about enzyme before, it is similar to gastric juice in the mouths of people we have
enzyme, we will see that the paper it is organic substances can be digestible, We have
developed the first end-to end when approximately 3 years ago and then developed a
more oblique Science Series. Series one can be taken to fill in the paper recycling
process making power need to be ground down to the paper. Typically require a
machine to remove the paper split. Science is the small end it split easily. Suppose we
measure the energy in units of 1 ton of paper, power may need approximately 300
kilowatts per hour. Is approximately 900 baht if the end-end into the remaining
approximately 300 baht is just grinding it light enough, No ground was hard. For
example, 1 ton of papers end to end-around and then 100 baht. Therefore,
approximately 400 baht to 900 baht, while the same. Enzyme life source of the 3

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mushrooms and fungi are bacteria, sounds and a little frightening, but do not fear
because we review each drug. Antibiotics do this he made from fungi. Destination
Science, or drug clients, but we eat it and then secure. However, the default could be
dangerous. Our start is extracted from the mushroom before the end come Sciences.
Suppose we make the Series a grinding paper in Science, requires clients to take about
14 species combination is a single enzyme. We have to extract themselves from the
CSA end 14 of the latter, we find that the only end-end sales. We can choose to buy.
Then we mixed the formula, the formula will be our single, the way we have been a
groom's technology business incubator units, Thailand Science Park, a unit of
NSTDA. Series two clean the recycled paper, for example, photocopying paper, A4
paper. Ink installation is quite a hard fall. Series two of us will remove ink off. The
white paper is made up. We removable dirty spot, our lap are located at Building M.
Tech. Center of the National Metal and Materials Technology, located in Science
Park. We start from a recipient to seed. They allow us to set up the company. It is like
a plantation in Thailand's first private research. This paper because they do not want
their paper factory. Plastic plant is not needed. Who owns the scrap paper they would
find the removal thereof. How the most to him do is to keep burning. It caused
pollution. Or more of the investment is to hire someone to remove a deep-living,
which is pollution. We all do this project in by the support of the Science Park. The
incubator unit, we can do innovative technology that can prevent the paper from
plastic. He sent the program to enter the country when Malaysia about May last. We
also award back. When the Thailand about last September. Would send this contest,
we have another award runner No. 1. Our aim is that we would like manufacturers to
recycle all you business. I was not that I will aim to produce plant pulp sales. The only
people who do know a single person. I do not want to use the word rich people only.
But I want to be working well, a person to research to encourage the recycling
business as major provinces by industry sources. In order to keep the garbage disposal
to remove the polluting burn it down to. The operators have been the result of this
good word I use both the money box.

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Competition Analysis (3C Analysis)
Competitor Analysis
From the information of Establishment of Demonstrative Environmental

Technology Center report that there are 28 waste stores in Chiang Rai included 7
stores registered in Muang district such as such as ChaingRaiKongKao, Wongpanit,
Thairung, ChaingRaiWera and SinThai2. After the company did survey about
possible competitors, we found that Wongpanit recycling Co., Ltd, Witaya Intertrade
Co., Ltd, Rux Partnership Co., Ltd, S.K. Recycle Co., Ltd and Sarathorn Metal Co.,
Ltd are the main competitors of our business. The company analyzed the main
competitors in Thailand for gathering their information and competitive edge. Those
competitors will influence to price trending and market situations. The company
would like to hold the higher advantage competitive and also use their information to
create the differentiation strategies.
Wongpanit recycling Co., Ltd
A business operation or commercial waste for recycling called “Waste

Selling”. The company called “Waste disposal for recycle Wongpanit Limited”, type
of business is trade residues from household materials such as plastic, bottles, paper,
metal, glass, etc. The recycling business trading since 1947 until now, operate by
Dr.Somthai Wongcharoen has seen the value of a public waste disposal together with
unknown values then initiate to do public relation into many communities,
municipalities, private agencies, government agencies, factory both in Pisanulok (The
first branch) and other provinces including Bangkok. The Wongpanit commercial
network was joined to meeting for established waste recycling center and find
measures to solve the garbage filled the city problem. They established the learning
canter about how to dispose the wastes in commercial
The concept of converting waste to resources has come from an over 30 years
of experience on waste management and the disagreement with the old waste disposal

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culture which emphasizes on waste incineration and landfill that normally cost an
enormous budget and cause many negative impacts to our environment.
On the other hand, the concept of converting waste to resources changes the
idea of “disposal” to “recovery”, from “destroying” to “creating benefit” It is a sound
solution beginning from inventing a new strategy of “waste is gold” to persuade
people to participate in waste sorting at the source-their homes, which helps reducing
waste effectively and generate extra income as a reward. Moreover, this method
emphasizes on public relation programs to educate people in every households of all
communities to be able to separate more types of waste combines with creating
activities which is another way to instill awareness and responsibility to society as a
whole.
Witaya Intertrade Co., Ltd
The company has experiences in manufacturing plastic recycling, selection,

procurement the A grade plastic (new tablets) both blow grade and injection grade.
They can provide any kinds of plastic which appropriate to the needs of most
customers. They purchased any types of plastic from customers around Samutprakarn
area.
Rux Partnership Co., Ltd
The business is established since 1998 until now, operating business about
buying bits of plastic from local factory around Ratchaburi. Then sell the plastic
aboard international.
In 2005, they expand business to recycling any type of business and the
objective is to reduce plastic waste. They expand business to produce PET
(polyettaline), Plastic grind machine and Recycle plastic machine. They have to
operate professional management team which marketing and production to give
instruction to interested network. The company’s vision is to participation in social

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assistance by reduce pollution, quantities of wastes and protect environment along

with response the customer needs which efficiency.
S.K. Recycle Co., Ltd
S.K Recycle company is a leader of purchased aluminums scrap, coppers

scrap, stainless scrap, steels scrap, etc. The company located in Nonthaburi. They
purchased materials from customers then recycle which melt with heat to reuse for
protect environment and send to aboard and domestic.
Sarathorn Metal Co., Ltd
The business operates by Mr.Sarawut Sitaposa, Ms.Sasithorn Khumthong and

team. They established the company and purchased materials from customer by
divided in 6 types as steel, plastic, glass, paper, and other. The business is growth
continued with modern technology

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Customer Analysis
Before opening the business, we have to specify the expect customer of our
business at the beginning. Sri-Cha-Learn Recycling Company can divide customer in
2 groups by
1. The people who come to sell wastes to the company such as scavenger or
small waste recycle store.
2. The recycle factories that come to buy the recyclable waste from the
company. Scavenger or small waste recycle store. The will come to our store and
transport the waste to their factory by themselves or they may ask us to deliver to their
factory.
inventories and easy for transportation. Moreover, there is Phahon Yothin road pass in
front of the company, the customer will come and see the company easily. The good
location of our company will attract the customer with the convenience transportation,
clean workplace, and good environment.
In the high competition environment, the company should do the business with
service mind. The company has to make the royalty and reliable to the customer such
as when the customers come to the company, they will get the service in a few
minutes.

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Competitive Analysis
We are study about competitive waste selling in Chiang Rai by using five
force to analyze the possibilities of our business and other factor for competitive with
competitors.
1. Rivalry among Competitors
According to the behavior of customers, they will choose to go to the shop

near their house. Therefore the rivalry among competitors depends on area. The
company is located in Mae Kron sub district which has the main competitors such as
DD Store and ChaingRaiKongKao. The company might create the new strategies to
hold advantage competitive.
2. Bargaining Power of Suppliers
The company will use the joint Venter strategy to corporate with the others
recycling stores in ChiangRai to set the ceiling price and floor price. However, if
some companies want to offer the higher price than the agreement, it will be their own
lose.
3. Bargaining Power of Customers
The company will do the agreement with customers (factories), which set in
the standard price in long term. The company cannot set higher price and the customer
cannot do the business with the other in the agreement period. The advantage for
doing agreement is to reduce risk in both sides.
4. Threat of Substitute Products
According to the kind of this business, the company has less substitute
products and services because the company’s products depend on the quantity
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consumption. There is no any company to create the new substitute product in this
product line
5. Threat of New Entrance

The company needs to build the Brand Loyalty for supplier and customers and
Access to distribution in the company to reduce the Threat of New Entrants in this
business. This business requires the high capital so it will hard for New Entrants to
come in this business also.

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Marketing Mix Strategy
Marketing mix
Marketing mix is the tools to assist the company in pursuing the customer to
meet company objectives. Before offer anything to customer, the company has to be
carefully managed and controlled. The most importance thing is the company has to
define the target group and meet their need. The marketing mix is apart of the
organizations planning process and consists of analyzing of 4Ps:
Figure 3.1 : Product
1. Product: The main product of the company is recyclable products. The company
will buy waste from scavenger or small waste recycle store and sell them to the
factory to processing of recycle.

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Figure 3.2 : Price
2. Price: It will depend on the price in the market in Bangkok but the company may
adjust to suitable for Chiang Rai market.
Figure 3.3 : Place
3. Place. The company is located in Maekorn sub district where has the large area for
collecting inventories and easy for transportation. The good location of our store will
attract the customer to come to store with the convenience transportation, clean
workplace, and good environment.
4. Promotion: The Company will use the advertising on radio, poster and flyer to
promote the company because the target group of the company is the people in middle
class or poor people. The radio and flyer can access to the target customer of the
company easily. Moreover, words of mouth will be the good way also.
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Conclusion
Sri-Cha-Learn Recycling Company has the main job of buying and selling
recycle waste to the process of recycling. The main products of the company are
Steel, plastic, bottle, paper and metal. The company can separate the customer in 2
groups. The first is the people who come to sell wastes to the company such as
scavenger or small waste recycle store and second, the recycle factories that come to
buy the recyclable waste from the company to the process of recycling. Recycling
waste business can generate the good income to entrepreneurs so there are a lot of
competitors. In ChiangRai, Sri-Cha-Learn Recycling Company has to face with 28
waste stores such as ChaingRaiKongKao, Wongpanit, Thairung, ChaingRaiWera and
SinThai2. In the high competition, the company uses the strategies that different from
competitor such as give the higher price, service with mind and transportation service.
Moreover, the company promotes the company by radio because most of target
customer listen the radio in dairy and to save cost of advertisements. The company
has to create new strategies all time to persuade the customer to do the business with
us. In addition, the company gets the profit from the campaign of the government
such as the campaign of Department of Environment Quality Promotion (DEQP),
Ministry of Natural Resource and Environment has signed cooperation agreements in
the campaign that reduce using plastic bag and try to use the recycle product. Not only
the good marketing strategies but also the company is located in the good area for
business. Sri-Cha-Learn Recycling Company is located Maekorn where large location
it can collect more inventory and easy to transportation. To support with company’s
vision and mission, the company will use the high technology to response the
customer needs and easy for management.

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Sale Forecast in Year 1

Quantity of Waste (Ton)
Product Price Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total
Steel 7,000 0.700 0.750 0.800 0.850 0.890 0.900 0.950 0.850 0.975 1.000 1.100 1.200 10.965
Plastic 13,000 0.600 0.650 0.750 0.850 0.950 0.975 1.000 0.975 1.050 1.200 1.290 1.350 11.640
Bottle 10,000 0.450 0.475 0.550 0.600 0.750 0.750 0.755 0.800 0.900 0.950 1.000 1.075 9.055
Paper 7,200 0.750 0.775 0.850 0.875 1.000 1.050 1.100 0.975 1.400 1.500 1.650 2.000 13.925
Metal 30,000 0.180 0.183 0.189 0.195 0.198 0.220 0.275 0.197 0.300 0.420 0.475 0.520 3.351
Total 67,200 2.680 2.833 3.139 3.370 3.788 3.895 4.080 3.797 4.625 5.070 5.515 6.145 48.936
Profit Estimation in Year 1

Sales/Months
Steel 7,000 4,900 5,250 5,600 5,950 6,230 6,300 6,650 5,950 7,350 7,000 7,700 8,400 77,280
Plastic 13,000 7,800 8,450 9,750 11,050 12,350 12,675 13,000 12,675 11,700 15,600 16,770 17,550 149,370
Bottle 10,000 4,500 4,750 5,500 6,000 7,500 7,500 7,550 8,000 14,000 9,500 10,000 10,750 95,550
Paper 7,000 5,400 5,580 6,120 6,300 7,200 7,560 7,920 7,020 2,160 10,800 11,880 14,400 92,340
Metal 30,000 5,400 5,475 5,670 5,850 5,925 6,600 8,250 5,910 138,750 12,600 14,250 15,600 230,280
Total 67,000 180,096 190,344 210,941 226,464 254,520 261,744 274,176 255,158 173,960 340,704 370,608 412,944 3,151,659

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Steel 7,000 0.840 0.900 0.960 1.020 1.068 1.080 1.140 1.020 1.170 1.200 1.320 1.440 13.158
Plastic 13,000 0.720 0.780 0.900 1.020 1.140 1.170 1.200 1.170 1.260 1.440 1.548 1.620 13.968
Bottle 10,000 0.540 0.570 0.660 0.720 0.900 0.900 0.906 0.960 1.080 1.140 1.200 1.290 10.866
Paper 7,200 0.900 0.930 1.020 1.050 1.200 1.260 1.320 1.170 1.680 1.800 1.980 2.400 16.710
Metal 30,000 0.216 0.219 0.227 0.234 0.237 0.264 0.330 0.236 0.360 0.504 0.570 0.624 4.021
Total 67,200 3.216 3.399 3.767 4.044 4.545 4.674 4.896 4.556 5.550 6.084 6.618 7.374 58.723

Sales/Months
Steel 7,000 5,880 6,300 6,720 7,140 7,476 7,560 7,980 7,140 8,190 8,400 9,240 10,080 92,106
Plastic 13,000 9,360 10,140 11,700 13,260 14,820 15,210 15,600 15,210 16,380 18,720 20,124 21,060 181,584
Bottle 10,000 5,400 5,700 6,600 7,200 9,000 9,000 9,060 9,600 10,800 11,400 12,000 12,900 108,660
Paper 7,000 6,480 6,696 7,344 7,560 8,640 9,072 9,504 8,424 12,096 12,960 14,256 17,280 120,312
Metal 30,000 6,480 6,570 6,804 7,020 7,110 7,920 9,900 7,092 10,800 15,120 17,100 18,720 120,636
Total 67,000 216,115 228,413 253,129 271,757 305,424 314,093 329,011 306,190 372,960 408,845 444,730 495,533 3,946,199

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Steel 7,000 0.875 0.938 1.000 1.063 1.113 1.125 1.188 1.063 1.219 1.250 1.375 1.500 13.706
Plastic 13,000 0.750 0.813 0.938 1.063 1.188 1.219 1.250 1.219 1.313 1.500 1.613 1.688 14.550
Bottle 10,000 0.563 0.594 0.688 0.750 0.938 0.938 0.944 1.000 1.125 1.188 1.250 1.344 11.319
Paper 7,200 0.938 0.969 1.063 1.094 1.250 1.313 1.375 1.219 1.750 1.875 2.063 2.500 17.406
Metal 30,000 0.225 0.228 0.236 0.244 0.247 0.275 0.344 0.246 0.375 0.525 0.594 0.650 4.189
Total 67,200 3.350 3.541 3.924 4.213 4.734 4.869 5.100 4.746 5.781 6.338 6.894 7.681 61.170

Sales/Months
Steel 7,000 6,125 6,563 7,000 7,438 7,788 7,875 8,313 7,438 8,531 8,750 9,625 10,500 95,944
Plastic 13,000 9,750 10,563 12,188 13,813 15,438 15,844 16,250 15,844 17,063 19,500 20,963 21,938 189,150
Bottle 10,000 5,625 5,938 6,875 7,500 9,375 9,375 9,438 10,000 11,250 11,875 12,500 13,438 113,188
Paper 7,000 6,750 6,975 7,650 7,875 9,000 9,450 9,900 8,775 12,600 13,500 14,850 18,000 125,325
Metal 30,000 6,750 6,844 7,088 7,313 7,406 8,250 10,313 7,388 11,250 15,750 17,813 19,500 125,663
Total 67,000 225,120 237,930 263,676 283,080 318,150 327,180 342,720 318,948 388,500 425,880 463,260 516,180 4,110,624

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Steel 7,000 0.889 0.953 1.016 1.080 1.130 1.143 1.207 1.080 1.238 1.270 1.397 1.524 13.926
Plastic 13,000 0.762 0.826 0.953 1.080 1.207 1.238 1.270 1.238 1.334 1.524 1.638 1.715 14.783
Bottle 10,000 0.572 0.603 0.699 0.762 0.953 0.953 0.959 1.016 1.143 1.207 1.270 1.365 11.500
Paper 7,200 0.953 0.984 1.080 1.111 1.270 1.334 1.397 1.238 1.778 1.905 2.096 2.540 17.685
Metal 30,000 0.229 0.232 0.240 0.248 0.251 0.279 0.349 0.250 0.381 0.533 0.603 0.660 4.256
Total 67,200 3.404 3.597 3.987 4.280 4.810 4.947 5.182 4.822 5.874 6.439 7.004 7.804 62.149

Sales/Months
Steel 7,000 6,223 6,668 7,112 7,557 7,912 8,001 8,446 7,557 8,668 8,890 9,779 10,668 97,479
Plastic 13,000 9,906 10,732 12,383 14,034 15,685 16,097 16,510 16,097 17,336 19,812 21,298 22,289 192,176
Bottle 10,000 5,715 6,033 6,985 7,620 9,525 9,525 9,589 10,160 11,430 12,065 12,700 13,653 114,999
Paper 7,000 6,858 7,087 7,772 8,001 9,144 9,601 10,058 8,915 12,802 13,716 15,088 18,288 127,330
Metal 30,000 6,858 6,953 7,201 7,430 7,525 8,382 10,478 7,506 11,430 16,002 18,098 19,812 127,673
Total 67,000 228,722 241,737 267,895 287,609 323,240 332,415 348,204 324,051 394,716 432,694 470,672 524,439 4,176,394

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Steel 7,000 0.910 0.975 1.040 1.105 1.157 1.170 1.235 1.105 1.268 1.300 1.430 1.560 14.255
Plastic 13,000 0.780 0.845 0.975 1.105 1.235 1.268 1.300 1.268 1.365 1.560 1.677 1.755 15.132
Bottle 10,000 0.585 0.618 0.715 0.780 0.975 0.975 0.982 1.040 1.170 1.235 1.300 1.398 11.772
Paper 7,200 0.975 1.008 1.105 1.138 1.300 1.365 1.430 1.268 1.820 1.950 2.145 2.600 18.103
Metal 30,000 0.234 0.237 0.246 0.254 0.257 0.286 0.358 0.256 0.390 0.546 0.618 0.676 4.356
Total 67,200 3.484 3.682 4.081 4.381 4.924 5.064 5.304 4.936 6.013 6.591 7.170 7.989 63.617

Sales/Months
Steel 7,000 6,370 6,825 7,280 7,735 8,099 8,190 8,645 7,735 8,873 9,100 10,010 10,920 99,782
Plastic 13,000 10,140 10,985 12,675 14,365 16,055 16,478 16,900 16,478 17,745 20,280 21,801 22,815 196,716
Bottle 10,000 5,850 6,175 7,150 7,800 9,750 9,750 9,815 10,400 11,700 12,350 13,000 13,975 117,715
Paper 7,000 7,020 7,254 7,956 8,190 9,360 9,828 10,296 9,126 13,104 14,040 15,444 18,720 130,338
Metal 30,000 7,020 7,118 7,371 7,605 7,703 8,580 10,725 7,683 11,700 16,380 18,525 20,280 130,689
Total 67,000 234,125 247,447 274,223 294,403 330,876 340,267 356,429 331,706 404,040 442,915 481,790 536,827 4,275,049

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CHAPTER 4
Technical Feasibility Study
Production and Operations Analysis
Product Characteristics
Waste is directly linked to human development, both technologically and socially.

The composition of different wastes has varied over time and location, with industrial
development and innovation being directly linked to waste materials. Waste management is
the collection, transport, processing, recycling or disposal, and monitoring of waste materials.
The term usually relates to materials produced by human activity, and is generally undertaken
to reduce their effect on health, the environment or aesthetics. Waste management is also
carried out to recover resources from it. Waste management can involve solid, liquid, gaseous
or radioactive substances, with different methods and fields of expertise for each.
Waste management practices differ for developed and developing nations, for urban and rural
areas, and for residential and industrial producers. Management for non-hazardous residential
and institutional waste in metropolitan areas is usually the responsibility of local government
authorities, while management for non-hazardous commercial and industrial waste is usually
the responsibility of the generator.

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Specification, Feathers, Dimension, Life Time, etc.
Type of product Product

Steel - short thick steel (Length not exceeding 80 cm.)
- small piece of steel. (Length not exceeding 50 cm.)
- steel screws, thin steel (Length not exceeding 50 cm.)
- sling wire
- steel coil
- penny-shaped steel
-steel rod
-steel knife rod
-cast tiny steel
-cast large steel
-steel machine
-1 inch steel bar (Length 1 m. or more)
-steel rod 6 length
-steel rod 5 length
-car steel
Plastic -pipe
-electric devices
-Any kids of plastic except plastic bags
Bottle -glass bottles
-color glass bottles
-plastic bottles
-opaque bottles
Paper -cardboard brown box
-colored paper, shoes box
-book paper
-paper digests
-art paper
-bag cement paper
-black and white paper

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-notebook paper
-computer paper
-news paper
-box milk paper
-paper digests to coat it one-sided
Metal can aluminum

thick aluminum
pump aluminum
pliston big aluminum
wheel aluminum
fryimg pan electricity aluminum
buttock frying pan electricity aluminum
frying pan aluminum
aluminum
fire aluminum
alloy aluminum
some clean aluminum
boiler aluminum
background edge new aluminum
can insecticide aluminum
lid aluminum
bamboo curtain aluminum
mosquito wire screen aluminum
large strip copper
brass thick Brass thin
boiler brass

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Production/Services Process
1. Procurement & Purchasing
Purchasing processing is the first step and linked to customers directly. So, the
company has to offer the best service to them as follow:
- Customer Registration
The company will keep information of customer to gather in right information and
serve the right service to customer. Moreover, it can prevent the company from purchasing
the stolen goods.
- Employee will separate type of products.
Every employee will have the specific carrier. The good skill of separating type of
waste is very importance because if they separate in the wrong, the company may lose
money.
- Compute the weight and price.

The high technology is to be use in the company to serve the good service to the
customer. Moreover, the company will get the royalty and reliable from customer because the
company serves them with the fairness.
2. Products Separation
The company separates the type of product, and then put into each zone. There are
five main zones as follow: Steel, Plastic, Bottle, Paper and Metal.
Zone 1 – Paper
Zone 2 – Plastic
Zone 3 – Metal
Zone 4 – Bottle
Zone 5 – Steel

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3. Recycling processing
First step required for recycling is collecting recyclable materials from communities.
Today many major cities and larger communities offer a curbside pick up service for
recyclable materials. Families, who recycle items such as paper, bottles and cans, place the
items in recycling collection bins. These bins usually have the recycling symbol on them.
This is one of the most important steps for recycling because if people do not separate their
recyclable materials from their trash then the materials will not be recycled. Instead they will
be sent to the landfill with other trash. Apart from the items you may recycle at home, many
other things such as old tires, computers, mattresses, cars and more are recycled for parts and
materials.
The second step involves processing the recyclable materials. This includes sorting
the materials into groups, cleaning them and getting them ready to be sold to manufacturers
who will turn the materials into new products.
Manufacturing is the third step in the recycling process. Today many products are
made out of either total or partial post consumer (recycled) materials. Many items you may
see every day are made from recycled materials. Newspapers, paper towels, office paper,
plastic bottles and aluminum cans are not only made of recycled materials, but they can also
be recycled again.
The last step, but certainly not the least, involves the purchasing of recycled products.
When consumers purchase products that have been made with post consumer material the
recycling process has been completed and can then be repeated.

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Location
inventories and easy for transportation. Moreover, there is Phahon Yothin road pass in front
of the company, the customer will come and see the company easily.
Facility Layout
Figure 4.1 : Inside the company
Inside the Company

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Figure
4.2 : Outside the company
Figure 4.3 : Outside the company
Outside the Company

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Industrial Cost
Material costs Labor cost

No. List Unit Quantity Total
@ Price @ Price
1. Groundwork
1.1 Preparation and layout area 1 3000 3000 3000
1.2 Hold hold 10 200 2000 2000
1.3 Concrete (Flow) 210 KSC. cubic 3 1680 10080 750 4500 14580
2. Landscape (Pile with sand) cubic 40 240 9600 200 8000 17600
3. Reinforced concrete 180 KSC. Cubic 80 1540 123200 200 16000 139200
3.1 Concrete Cubic 5 1680 8400 250 12500 9650
3.2 Steel added Cubic
- 6 MM, SR 24 Line 45 50 2250 15 675 2925
- 9 MM, SR 24 Line 17 92 1564 15 255 1819
- DB 12 MM SD 30 Line 52 184 9568 25 1300 10868
- DB 12 MM SD 30 Line
3.3 Steel tie wire Square meters 800 1900 30400 30400
3.4 Timber Meter 58 250 14500 14500
4. Mon brick wall construction Square meters 59 120 7080 65 3835 10915
5. Steel roof frame (100x50x20x32) Meter 20 290 5800 80 1600 7400
6. Roof Square meters 57 60 3420 15 855 4275
6.1 Curved roof ridge Item 15 60 900 15 225 1125
6.2 Close lid open Item 2 50 100 15 30 130
6.3 Bathroom tile roof above Item 35 65 2275 15 525 2800
6.4 Roof holder Set 100 2.5 250 15 1500 1750
6.5 Wooden eaves Meter 20 120 2400 30 600 3000
6.6 Wood closed eaves Meter 20 100 2000 30 600 2600
7. Ceiling (Smooth Gypsum) Square meters 26 130 3380 80 2080 5460
No. List Unit Quantity Material costs Labor cost Total
8. Tiled floor Square meters 22 250 5500 80 1760 7260
9.1 Tiled 6 250 1500 80 480 1980
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9. Wall construction Square meters 16 250 4000 80 1280 5280

@ Price @ Price
10. Door swing D.1 3 8500 255000 200 400 25700
Doors D.2 Set 2 1500 3000 200 400 3400
Windows W. 1 2 2600 5200 200 400 5600
11. Bathroom
11.1 water close Set 2 3500 7000 7000
11.2 Basin Set 2 950 1900 1900
11.3 Toilet Shower Set 2 200 400 400
11.4 Toilet Gary Rg plot Item 2 100 200 200
11.5 Long neck faucet Item 2 200 400 400
11.6 A package tube with pond Set 1 5000 5000 5000
equipment pond Gypsum
12. Electricity with equipment 9500 9500
13. Truck digital weighting machine Machine 200000
14 Digital weighting machine Set 20000
15. Other working and painting 28720 28720
Total 673,337

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Machine/Tools/ Equipments
Figure 4.4 : Hydrolic Nck
HYDROLIC PRESS NCK
Figure 4.5 : Scale-VW Platform

SCALE-VW PLATFORM
Figure 4.6 : Truck

TRUCK

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Figure 4.7 : Truck Digital Weighting Machine Figure 4.8 : Metal Cutter
TRUCK DIGITAL WEIGHTING MACHINE METAL CUTTER
Figure 4.9 : Forklift

FORKLIFT
Figure 4.10 : Tractor

TRACTOR
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Logistics Management
Logistic Management is used in the company to manage the transportation

inside and outside the company to make everything go fast and correctly. Logistics
Management is a part of Supply Chain Management that plans, implements, and
controls the efficient, effective, forward, and reverse flow and storage of goods,
services, and related information between the point of origin and the point of
consumption in order to meet customers’ requirements.
Logistic activities
Customer Service
The company has delivery service to customer and supplier. Moreover, the
company will emphasize to take care of customers with smile to make the loyalty
customer. The company stand in “Best service with smile” Because the activities that
the company satisfies and impresses for customer. This is the most important thing to
persuade them and can affect to the others step in logistic activities.
Return goods
If the company delivers the wrong products or there are any problems about
the product, the company will respond and welcome to return goods suddenly.
Location Planning
inventories and easy for transportation.
Transport & Traffic

- Outbound logistics. It is included in procurement & purchasing processing.
- Inbound logistics. The company has delivery service to transport the
transformed product to factory by a fewer fee.

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Warehousing & Inventory Control

There are five zones to keep each type of products as follow:
Zone 1 – Paper
Zone 2 – Plastic
Zone 3 – Metal
Zone 4 – Bottle
Zone 5 – Steel
Material Handling and Transportation
TRUCK TRACTOR
FORKLIFT

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Cost of Investment
-Pre-Operating Cost
Pre-operating expense Price
1 Registration Fee 9,400
2 Electronics register expense 4,450
3 Water supply register expense (2 Inch) 4,100
4 Telephone register expense 3,750
Total 21,700
- Investment Cost
Land
Land [4,200 square meters] size 60*70 4,000,000
Buildings
Equipments
List Quantity Price
Computer 2 19,500
Phone + Fax Machine 2 8,900
Printer 1 1,563
Refrigerator- Sanyo RM-952, 5.2 Q 1 5,000
29-inch television- LG Super Slim Flat TV 1 7,500
Air conditioning – 18221 BTU. 1 21,900

Fan 3 1,500
Calculator 3 1,500
Furniture
Free Living 1 9,500
Desk 3 2,400
Chair 6 3,500
Cabinet documents 2 1,600
Versatile table 2 1,000
TV rack 1 400
Computer table 2 400
Interior settings 1 10,000
Total 96,163

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Tools
List Quantity Price
Metal cutter 1 165,000
Filler piece versatile machine 1 100,000
Scale - VW-Platform 1 20,000
Weight machine setting 1 200,000
Forklift 1 85,000
Truck - Mitsubishi FN527M 1 700,000
Excavators scoop - MF750 1 280,000
Total 1,550,000

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Administration Cost
The company is SME business which has 4600 square meters and uses
machines in processing as well. Therefore, the company requires totally employees
are eighteen people in ten roles as follow:
Roles Quantity Salary Total
General Manager 1 9,000 9,000
Specialist Accountant 1 7,000 7,000
Specialist Technician 1 7,000 7,000
Public Relation and Customer Service 1 7,000 7,000
Machinery Professional 6 4,200 25,200
Metal cutter 3
Filler piece versatile machine 3
Scale and Weight Machine Professional 1 4,200 4,200
Specialist Product Separation 3 4,000 12,000
Truck Driver Professional 1 4,200 4,200
Excavator and Forklift Driver Professional 1 4,200 4,200
Total 16 79,800
The qualifications of general manager have to graduate at least bachelor

degree in business administration major or equivalent in related field knowledgeable.
Experienced at least 2 year, unlimited sex, aged 25 years or more. The qualifications
of specialist accountant, specialist technician, public relation and customer service
have to deeply understand its knowledge and experienced at least 1 year, unlimited
sex, aged 24 years or more. The qualifications of other roles, employees need to
graduate level professional certificate or equivalent. To ensure that qualified staff and
level of maturity.

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Depreciation
Investment
Lists cost Years Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total
Computer 19500 3 542 542 542 542 542 542 542 542 542 542 542 542 6,500
Phone + Fax Machine 8900 3 247 247 247 247 247 247 247 247 247 247 247 247 2,967
Printer 1563 3 43 43 43 43 43 43 43 43 43 43 43 43 521
Refrigerator 5000 3 139 139 139 139 139 139 139 139 139 139 139 139 1,667
29-inch television 7500 3 208 208 208 208 208 208 208 208 208 208 208 208 2,500
Air conditioning 21900 3 608 608 608 608 608 608 608 608 608 608 608 608 7,300
Fan 1500 3 42 42 42 42 42 42 42 42 42 42 42 42 500
Calculator 1500 3 42 42 42 42 42 42 42 42 42 42 42 42 500
Free Living 9500 3 264 264 264 264 264 264 264 264 264 264 264 264 3,167
Desk 2400 3 67 67 67 67 67 67 67 67 67 67 67 67 800
Chair 3500 3 97 97 97 97 97 97 97 97 97 97 97 97 1,167
Cabinet documents 1000 3 28 28 28 28 28 28 28 28 28 28 28 28 333
Versatile table 400 3 11 11 11 11 11 11 11 11 11 11 11 11 133
TV rack 400 3 11 11 11 11 11 11 11 11 11 11 11 11 133
Computer table 400 3 11 11 11 11 11 11 11 11 11 11 11 11 133
Metal cutter 165,000 5 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 2,750 33,000
Filler piece versatile machine 100,000 5 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 1,667 20,000
Scale - VW-Platform 20,000 5 333 333 333 333 333 333 333 333 333 333 333 333 4,000
Weight machine setting 200,000 5 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 3,333 40,000
Forklift 85,000 5 1,417 1,417 1,417 1,417 1,417 1,417 1,417 1,417 1,417 1,417 1,417 1,417 17,000
Truck - Mitsubishi FN527M 700,000 5 11,667 11,667 11,667 11,667 11,667 11,667 11,667 11,667 11,667 11,667 11,667 11,667 140,000
Excavators scoop - MF750 280,000 5 4,667 4,667 4,667 4,667 4,667 4,667 4,667 4,667 4,667 4,667 4,667 4,667 56,000
Total 28,193 28,193 28,193 28,193 28,193 28,193 28,193 28,193 28,193 28,193 28,193 28,193 338,321

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Chapter 5
Financial Analysis

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Income Statement
Sri Cha Learn
Beginning of year 1 to the Ending of Year 1
Item January February March April May June July August September October November December
Revenue: 180,096 370,440 581,381 807,845 1,062,365 1,324,109 1,598,285 1,853,443 2,027,403 2,368,107 2,738,715 3,151,659
Less: Cost of goods sold 6,300 12,939 20,283 28,191 37,013 46,155 55,914 64,814 103,955 116,442 130,077 145,085
Gross margin 173,796 357,501 561,098 779,653 1,025,352 1,277,953 1,542,371 1,788,630 1,923,449 2,251,665 2,608,638 3,006,575
Less: Operating expense
Marketing expense 19,725 37,950 44,175 47,400 47,400 47,400 47,400 47,400 47,400 47,400 47,400 47,400
Administrative expense 89,000 178,000 267,000 356,000 445,000 534,000 623,000 712,000 801,000 890,000 979,000 1,068,000
Depreciation( organization
plan and management) 39,727 79,454 119,180 158,907 198,634 238,361 278,088 317,814 357,541 397,268 436,995 476,722
Property tax 12.5% 48,681 97,361 146,042 194,722 243,403 292,084 340,764 389,445 438,125 486,806 535,487 584,167
Insurance Expense 40,378
Total Operation expenses 197,132 392,765 576,397 757,030 934,437 1,111,844 1,289,252 1,466,659 1,644,067 1,821,474 1,998,881 2,216,666
Profit before deduct - - -
interest rate 23,336 35,263 15,299 22,624 90,915 166,109 253,119 321,970 279,382 430,191 609,757 789,908
Less: Interest expense 70,000 139,668 209,001 277,996 346,650 414,961 482,924 550,538 617,799 684,704 751,250 817,433
Less: Value added 7% 7,556 15,113 22,669 30,225 37,782 45,338 52,895 60,451 68,007 75,564 83,120 90,676
Profit before deduct - - - - - - - - - - - -
income tax 100,893 190,044 246,969 285,598 293,517 294,190 282,700 289,019 406,424 330,076 224,613 118,201
Less: Corporate tax 0
Net Income - - - - - - - - - - - -
100,893 190,044 246,969 285,598 293,517 294,190 282,700 289,019 406,424 330,076 224,613 118,201

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Income Statement
Sri Cha Learn
Revenue: 216,115 444,528 697,657 969,414 1,274,838 1,588,931 1,917,942 2,224,132 2,597,092 3,005,937 3,450,666 3,946,199
Gross margin 214,987 435,433 679,750 942,016 1,236,855 1,539,976 1,857,277 2,152,787 2,512,638 2,906,497 3,334,865 3,812,389
Property tax 12.5% 48,681 97,361 146,042 194,722 243,403 292,084 340,764 389,445 438,125 486,806 535,487 584,167
Profit before deduct
interest rate 34,580 74,619 138,527 220,386 334,818 457,531 594,425 709,528 888,971 1,102,423 1,350,384 1,607,122
Less: Value added 7% 7,556 15,113 22,669 30,225 37,782 45,338 52,895 60,451 68,007 75,564 83,120 90,676
Profit before deduct - - - - -
income tax 38,795 71,761 80,487 70,886 28,336 22,880 88,660 133,038 242,147 385,661 564,082 751,684
Less: Corporate tax 90,253
Net Income - - - - -
38,795 71,761 80,487 70,886 28,336 22,880 88,660 133,038 242,147 385,661 564,082 661,431

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Income Statement
Sri Cha Learn
Revenue: 225,120 463,050 726,726 1,009,806 1,327,956 1,655,136 1,997,856 2,316,804 2,705,304 3,131,184 3,594,444 4,110,624
Less: Cost of goods sold 157 8,455 17,635 27,521 38,547 49,976 62,174 73,299 86,955 102,564 119,608 138,367
Gross margin 224,963 454,595 709,091 982,285 1,289,409 1,605,160 1,935,682 2,243,505 2,618,349 3,028,620 3,474,836 3,972,257
Depreciation(
organization plan and
management) 39,727 79,454 119,180 158,907 198,634 238,361 278,088 317,814 357,541 397,268 436,995 476,722
Property tax 12.5% 48,681 97,361 146,042 194,722 243,403 292,084 340,764 389,445 438,125 486,806 535,487 584,167
interest rate 44,556 93,780 167,869 260,655 387,371 522,715 672,830 800,246 994,683 1,224,546 1,490,355 1,766,990
Less: Value added 7% 7,556 15,113 22,669 30,225 37,782 45,338 52,895 60,451 68,007 75,564 83,120 90,676
Profit before deduct - - - -
income tax 24,176 43,274 37,094 11,801 47,843 116,538 200,431 262,056 391,137 556,084 757,419 970,027
Net Income - - - -
24,176 43,274 37,094 11,801 47,843 116,538 200,431 262,056 391,137 556,084 757,419 847,023

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Income Statement
Sri Cha Learn
Revenue: 228,722 470,459 738,354 1,025,963 1,349,203 1,681,618 2,029,822 2,353,873 2,748,589 3,181,283 3,651,955 4,176,394
Less: Cost of goods sold 3,668 849 5,789 10,976 16,869 23,058 29,836 35,817 43,841 53,242 63,566 75,211
Gross margin 232,390 469,610 732,564 1,014,987 1,332,334 1,658,560 1,999,985 2,318,056 2,704,748 3,128,041 3,588,389 4,101,183
Depreciation( organization plan
and management) 39,727 79,454 119,180 158,907 198,634 238,361 278,088 317,814 357,541 397,268 436,995 476,722
Property tax 12.5% 48,681 97,361 146,042 194,722 243,403 292,084 340,764 389,445 438,125 486,806 535,487 584,167
Profit before deduct interest
rate 51,982 108,795 191,342 293,358 430,297 576,115 737,133 874,796 1,081,081 1,323,967 1,603,907 1,895,917
Less: Value added 7% 7,556 15,113 22,669 30,225 37,782 45,338 52,895 60,451 68,007 75,564 83,120 90,676
Profit before deduct income
tax 11,595 17,904 1,978 41,792 116,996 201,549 301,777 379,128 525,584 709,128 930,218 1,163,874
Net Income 11,595 17,904 1,978 41,792 116,996 201,549 301,777 379,128 525,584 709,128 930,218 1,011,792

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Income Statement
Sri Cha Learn
Revenue: 234,125 481,572 755,795 1,050,198 1,381,074 1,721,341 2,077,770 2,409,476 2,813,516 3,256,431 3,738,222 4,275,049
Gross margin 230,925 469,742 734,418 1,018,540 1,337,948 1,666,330 2,010,073 2,330,209 2,720,047 3,146,728 3,610,793 4,128,110
Property tax 12.5% 48,681 97,361 146,042 194,722 243,403 292,084 340,764 389,445 438,125 486,806 535,487 584,167
interest rate 50,518 108,927 193,196 296,910 435,911 583,885 747,221 886,950 1,096,380 1,342,654 1,626,312 1,922,844
Less: Value added 7% 7,556 15,113 22,669 30,225 37,782 45,338 52,895 60,451 68,007 75,564 83,120 90,676
Profit before deduct - -
income tax 7,337 6,277 21,150 68,537 151,728 244,415 352,989 438,489 594,226 787,348 1,018,399 1,262,875
Net Income - -
7,337 6,277 21,150 68,537 151,728 244,415 352,989 438,489 594,226 787,348 1,018,399 1,095,944

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Statement of Cash Flow
Beginning of year 1 to the ending of year 1
Beginning January February March April May June July August September October November December
Cash received:
Sales 180,096 190,344 210,941 226,464 254,520 261,744 274,176 255,158 173,960 340,704 370,608 412,944
Receivable
Other revenue
Total cash 180,096 190,344 210,941 226,464 254,520 261,744 274,176 255,158 173,960 340,704 370,608 412,944
Cash payment:
Operation
Purchasing goods 9,000 6,784 7,646 8,151 9,212 9,281 10,022 8,532 52,101 1,065 14,127 15,596
Marketing Expense 19,725 18,225 6,225 3,225 - - - - - - - -
Administrative Expense 89,000 89,000 89,000 89,000 89,000 89,000 89,000 89,000 89,000 89,000 89,000 89,000
Insurance Expense - - - - - - - - - - - 40,378
Property Tax 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681
Corporate Tax 0
Investment
Add Purchasing fixed asset
Add Pre-operating expense
Total cash payment 166,406 162,689 151,552 149,056 146,893 146,961 147,703 146,213 189,782 138,745 151,807 193,654
Net cash:
-
Net cash 13,690 27,655 59,389 77,408 107,627 114,783 126,473 108,946 15,822 201,959 218,801 219,290
Add current fund 1,599,100 1,599,100 1,497,286 1,409,436 1,353,321 1,315,224 1,307,347 1,306,625 1,317,594 1,311,036 1,179,709 1,266,164 1,369,460
Total cash 1,599,100 1,612,790 1,524,941 1,468,825 1,430,729 1,422,851 1,422,130 1,433,099 1,426,540 1,295,214 1,381,668 1,484,965 1,588,750
Add owner's capital
Add loan
Add payable
Less: Installment debt payment 37,948 38,280 38,615 38,953 39,294 39,638 39,984 40,334 40,687 41,043 41,402 41,765
Less: value added tax 7 % 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556
Net cash 1,599,100 1,497,286 1,409,436 1,353,321 1,315,224 1,307,347 1,306,625 1,317,594 1,311,036 1,179,709 1,266,164 1,369,460 1,473,246

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Cash received:
Sales 216,115 228,413 253,129 271,757 305,424 314,093 329,011 306,190 372,960 408,845 444,730 495,533
Receivable
Other revenue
Total cash 216,115 228,413 253,129 271,757 305,424 314,093 329,011 306,190 372,960 408,845 444,730 495,533
Cash payment:
Operation
-
Marketing Expense 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
Property Tax 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681
Corporate Tax 90,253
Investment
Net cash:
Net cash 77,498 79,592 103,273 121,295 153,689 162,275 176,304 155,271 218,128 252,376 287,097 205,507
Add current fund 1,473,246 1,473,246 1,435,240 1,399,327 1,387,095 1,392,886 1,431,071 1,477,842 1,538,642 1,578,408 1,681,032 1,817,903 1,989,496
Total cash 1,473,246 1,550,744 1,514,831 1,502,600 1,508,391 1,546,575 1,593,346 1,654,146 1,693,913 1,796,537 1,933,408 2,105,000 2,195,003
Add owner's capital
Add loan
Add payable
Net cash 1,473,246 1,435,240 1,399,327 1,387,095 1,392,886 1,431,071 1,477,842 1,538,642 1,578,408 1,681,032 1,817,903 1,989,496 2,079,499

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Cash received:
Sales 225,120 237,930 263,676 283,080 318,150 327,180 342,720 318,948 388,500 425,880 463,260 516,180
Receivable
Other revenue
Total cash 225,120 237,930 263,676 283,080 318,150 327,180 342,720 318,948 388,500 425,880 463,260 516,180
Cash payment:
Operation
-
Property Tax 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681
Investment
Net cash:
Net cash 88,626 88,770 113,438 132,211 165,954 174,898 189,512 167,602 233,078 268,753 304,921 192,623
Add current fund 2,079,499 2,079,499 2,052,620 2,025,885 2,023,819 2,040,525 2,090,975 2,150,369 2,224,377 2,276,475 2,394,049 2,547,297 2,736,714
Total cash 2,079,499 2,168,124 2,141,390 2,139,323 2,156,029 2,206,479 2,265,873 2,339,881 2,391,979 2,509,553 2,662,802 2,852,218 2,929,337
Add owner's capital
Add loan
Add payable
Net cash 2,079,499 2,052,620 2,025,885 2,023,819 2,040,525 2,090,975 2,150,369 2,224,377 2,276,475 2,394,049 2,547,297 2,736,714 2,813,833

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Cash received:
Sales 228,722 241,737 267,895 287,609 323,240 332,415 348,204 324,051 394,716 432,694 470,672 524,439
Receivable
Other revenue
Total cash 228,722 241,737 267,895 287,609 323,240 332,415 348,204 324,051 394,716 432,694 470,672 524,439
Cash payment:
Operation
-
Property Tax 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681
Investment
Net cash:
Net cash 97,875 96,478 122,092 141,637 176,363 185,418 200,493 177,732 245,136 282,022 319,272 179,090
Add current fund 2,813,833 2,813,833 2,796,203 2,777,177 2,783,765 2,809,897 2,870,756 2,940,670 3,025,658 3,087,885 3,217,517 3,384,034 3,587,802
Total cash 2,813,833 2,911,708 2,892,682 2,899,269 2,925,402 2,986,260 3,056,174 3,141,162 3,203,390 3,333,021 3,499,539 3,703,306 3,766,892
Add owner's capital
Add loan
Add payable
Net cash 2,813,833 2,796,203 2,777,177 2,783,765 2,809,897 2,870,756 2,940,670 3,025,658 3,087,885 3,217,517 3,384,034 3,587,802 3,651,387

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Cash received:
Sales 234,125 247,447 274,223 294,403 330,876 340,267 356,429 331,706 404,040 442,915 481,790 536,827
Receivable
Other revenue
Total cash 234,125 247,447 274,223 294,403 330,876 340,267 356,429 331,706 404,040 442,915 481,790 536,827
Cash payment:
Operation
Property Tax 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681 48,681
Investment
Net cash:
Net cash 91,725 97,948 123,602 143,127 178,220 187,522 202,720 179,934 248,029 285,130 322,745 168,563
Add current fund 3,651,387 3,651,387 3,627,608 3,610,051 3,618,149 3,645,771 3,708,487 3,780,504 3,867,719 3,932,149 4,064,673 4,234,299 4,441,540
Total cash 3,651,387 3,743,112 3,725,556 3,733,653 3,761,276 3,823,991 3,896,008 3,983,223 4,047,653 4,180,177 4,349,803 4,557,044 4,610,103
Add owner's capital
Add loan
Add payable
Net cash 3,651,387 3,627,608 3,610,051 3,618,149 3,645,771 3,708,487 3,780,504 3,867,719 3,932,149 4,064,673 4,234,299 4,441,540 4,494,598

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Balance Sheet
beginning of year 1 to the ending of year 1
Asset
Current Asset:
Cash 1,599,100 1,497,286 1,409,436 1,353,321 1,315,224 1,307,347 1,306,625 1,317,594 1,311,036 1,179,709 1,266,164 1,369,460 1,473,246
Inventory 2,700 2,845 3,147 3,389 3,780 3,918 4,182 3,814 16,775 5,352 5,844 6,432
Total current asset 1,599,100 1,499,986 1,412,281 1,356,468 1,318,614 1,311,128 1,310,544 1,321,777 1,314,850 1,196,484 1,271,516 1,375,304 1,479,678
Fixed Asset:
Land 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000
Building 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337
Equipment/Machinery 155,863 155,863 155,863 155,863 155,863 155,863 155,863 155,863 155,863 155,863 155,863 155,863 155,863
Vehicle 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000
Pre-operating expense 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700 21,700
Less: accumulated depreciation 39,727 79,454 119,180 158,907 198,634 238,361 278,088 317,814 357,541 397,268 436,995 476,722
Total fixed asset 6,400,900 6,361,173 6,321,446 6,281,720 6,241,993 6,202,266 6,162,539 6,122,812 6,083,086 6,043,359 6,003,632 5,963,905 5,924,178
Total asset 8,000,000 7,861,159 7,733,728 7,638,188 7,560,606 7,513,393 7,473,083 7,444,589 7,397,936 7,239,843 7,275,148 7,339,209 7,403,856
Liability and owner's equity
Liabilties:
Account payable
Other current liability
Total current Liability - - - - - - - - - - - - -
Payback income tax
Payback other expense
Loan 8,000,000 7,962,052 7,923,772 7,885,157 7,846,204 7,806,910 7,767,273 7,727,288 7,686,954 7,646,267 7,605,224 7,563,822 7,522,057
Total liabilities 8,000,000 7,962,052 7,923,772 7,885,157 7,846,204 7,806,910 7,767,273 7,727,288 7,686,954 7,646,267 7,605,224 7,563,822 7,522,057
Owner's equity:
Capital
Dividend
Add: income statement - - - - - - - - - - - -
accumulated 100,893 190,044 246,969 285,598 293,517 294,190 282,700 289,019 406,424 330,076 224,613 118,201
- - - - - - - - - - - -
Total owner's equity 100,893 190,044 246,969 285,598 293,517 294,190 282,700 289,019 406,424 330,076 224,613 118,201
Total liabilities and owner's equity 8,000,000 7,861,159 7,733,728 7,638,188 7,560,606 7,513,393 7,473,083 7,444,589 7,397,936 7,239,843 7,275,148 7,339,209 7,403,856

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Balance Sheet
From the beginning of year 2 to the ending of year 2
Asset
Current Asset:
Cash 1,473,246 1,435,240 1,399,327 1,387,095 1,392,886 1,431,071 1,477,842 1,538,642 1,578,408 1,681,032 1,817,903 1,989,496 2,079,499
Inventory 6,432 3,240 3,414 3,777 4,067 4,537 4,702 5,019 4,577 5,619 6,422 7,012 7,718
Fixed Asset:
Land 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000
Building 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337
Vehicle 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000
Less: accumulated depreciation 476,722 516,449 556,175 595,902 635,629 675,356 715,083 754,809 794,536 834,263 873,990 913,717 953,443
Total asset 7,403,856 7,322,931 7,247,466 7,195,870 7,162,225 7,161,152 7,168,361 7,189,751 7,189,349 7,253,288 7,351,236 7,483,692 7,534,673
Liabilties:
Account payable
Payback income tax
Loan 7,522,057 7,479,927 7,437,428 7,394,558 7,351,312 7,307,688 7,263,683 7,219,292 7,174,513 7,129,342 7,083,775 7,037,810 6,991,443
Owner's equity:
- - - - - - - - - - - - -
Capital 118,201 118,201 118,201 118,201 118,201 118,201 118,201 118,201 118,201 118,201 118,201 118,201 118,201
Dividend
Add: income statement - - - - -
accumulated 38,795 71,761 80,487 70,886 28,336 22,880 88,660 133,038 242,147 385,661 564,082 661,431
- - - - - - - -
Total owner's equity 118,201 156,996 189,963 198,688 189,088 146,537 95,321 29,541 14,837 123,946 267,460 445,881 543,230
Total liabilities and
owner's equity 7,403,856 7,322,931 7,247,466 7,195,870 7,162,225 7,161,152 7,168,361 7,189,751 7,189,349 7,253,288 7,351,236 7,483,692 7,534,673

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Balance Sheet
Asset
Current Asset:
Cash 2,079,499 2,052,620 2,025,885 2,023,819 2,040,525 2,090,975 2,150,369 2,224,377 2,276,475 2,394,049 2,547,297 2,736,714 2,813,833
Inventory 7,718 3,375 3,556 3,934 4,237 4,726 4,898 5,228 4,768 5,853 6,690 7,304 8,040
Fixed Asset:
Land 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000
Building 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337
Tool 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000
Less: accumulated depreciation 953,443 993,170 1,032,897 1,072,624 1,112,351 1,152,078 1,191,804 1,231,531 1,271,258 1,310,985 1,350,712 1,390,438 1,430,165
Total asset 7,534,673 7,463,725 7,397,445 7,356,029 7,333,311 7,344,523 7,364,363 7,398,973 7,410,885 7,489,817 7,604,176 7,754,480 7,792,607
Liabilties:
Account payable
Payback income tax
Loan 6,991,443 6,944,670 6,897,488 6,849,893 6,801,882 6,753,450 6,704,595 6,655,312 6,605,598 6,555,449 6,504,861 6,453,831 6,402,354
Owner's equity:
Capital 543,230 543,230 543,230 543,230 543,230 543,230 543,230 543,230 543,230 543,230 543,230 543,230 543,230
Dividend
Add: income statement - - - -
accumulated 24,176 43,274 37,094 11,801 47,843 116,538 200,431 262,056 391,137 556,084 757,419 847,023
Total owner's equity 543,230 519,054 499,956 506,136 531,429 591,073 659,768 743,661 805,286 934,367 1,099,314 1,300,649 1,390,253
owner's equity (4) + (5) 7,534,673 7,463,725 7,397,445 7,356,029 7,333,311 7,344,523 7,364,363 7,398,973 7,410,885 7,489,817 7,604,176 7,754,480 7,792,607

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Balance Sheet
Asset
Current Asset:
Cash 2,813,833 2,796,203 2,777,177 2,783,765 2,809,897 2,870,756 2,940,670 3,025,658 3,087,885 3,217,517 3,384,034 3,587,802 3,651,387
Inventory 8,040 1,874 1,936 2,117 2,223 2,526 2,653 2,905 2,563 3,439 4,029 4,425 4,990
Fixed Asset:
Land 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000
Building 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337
Vehicle 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000
Less: accumulated depreciation 1,430,165 1,469,892 1,509,619 1,549,346 1,589,072 1,628,799 1,668,526 1,708,253 1,747,980 1,787,707 1,827,433 1,867,160 1,906,887
Total asset 7,792,607 7,729,085 7,670,394 7,637,436 7,623,947 7,645,383 7,675,696 7,721,210 7,743,369 7,834,149 7,961,530 8,125,967 8,150,391
Liabilties:
Account payable
Payback income tax
Loan 6,402,354 6,350,427 6,298,045 6,245,205 6,191,902 6,138,133 6,083,894 6,029,180 5,973,987 5,918,312 5,862,149 5,805,495 5,748,345
Owner's equity:
Capital 1,390,253 1,390,253 1,390,253 1,390,253 1,390,253 1,390,253 1,390,253 1,390,253 1,390,253 1,390,253 1,390,253 1,390,253 1,390,253
Dividend
Add: income statement - -
accumulated 11,595 17,904 1,978 41,792 116,996 201,549 301,777 379,128 525,584 709,128 930,218 1,011,792
Total owner's equity 1,390,253 1,378,659 1,372,349 1,392,232 1,432,045 1,507,249 1,591,802 1,692,030 1,769,381 1,915,837 2,099,381 2,320,472 2,402,046
owner's equity 7,792,607 7,729,085 7,670,394 7,637,436 7,623,947 7,645,383 7,675,696 7,721,210 7,743,369 7,834,149 7,961,530 8,125,967 8,150,391

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Balance Sheet
Asset
Current Asset:
Cash 3,651,387 3,627,608 3,610,051 3,618,149 3,645,771 3,708,487 3,780,504 3,867,719 3,932,149 4,064,673 4,234,299 4,441,540 4,494,598
Inventory 4,990 3,510 3,699 4,092 4,406 4,915 5,094 5,437 4,959 6,087 6,957 7,597 8,361
Fixed Asset:
Land 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000
Building 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337 673,337
Vehicle 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000 1,550,000
Less: accumulated depreciation 1,906,887 1,946,614 1,986,341 2,026,067 2,065,794 2,105,521 2,145,248 2,184,975 2,224,701 2,264,428 2,304,155 2,343,882 2,383,609
Total asset 8,150,391 8,085,404 8,028,309 7,997,073 7,985,283 8,008,780 8,041,250 8,089,081 8,113,306 8,207,231 8,338,001 8,506,154 8,520,251
Liabilties:
Account payable
Total current
Liability - - - - - - - - - - - - -
Payback income tax
Loan 5,748,345 5,690,695 5,632,541 5,573,877 5,514,701 5,455,006 5,394,790 5,334,046 5,272,771 5,210,960 5,148,608 5,085,710 5,022,262
Owner's equity:
Capital 2,402,046 2,402,046 2,402,046 2,402,046 2,402,046 2,402,046 2,402,046 2,402,046 2,402,046 2,402,046 2,402,046 2,402,046 2,402,046
Dividend
Add: income statement - -
accumulated 7,337 6,277 21,150 68,537 151,728 244,415 352,989 438,489 594,226 787,348 1,018,399 1,095,944
Total owner's equity 2,402,046 2,394,709 2,395,769 2,423,196 2,470,583 2,553,774 2,646,460 2,755,035 2,840,535 2,996,272 3,189,394 3,420,444 3,497,989

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Net Present Value
Investment Cost & Net Income Discount Rate
Investment -8000000 10.5%
1 1,473,246
2 2,079,499
3 2,813,833
4 3,651,387
5 4,494,598
NPV 2,299,170
Payback Period
Payback Period Cost of Project/ Average Annual Income
Cost of Project 8,000,000

Average Annual Income 2,902,513
Payback period 2.76 Years
Internal Rate of Return

IRR 19%

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Income Statement Cash Flow
4,000,000 16,000,000
3,500,000
14,000,000
3,000,000
12,000,000
2,500,000 Year 5
Year 5 10,000,000
2,000,000 Year 4
Year 4
Baht
Baht
1,500,000 Year 3 8,000,000 Year 3
Year 2 Year 2
1,000,000 6,000,000
Year 1 Year 1
500,000 4,000,000
-
2,000,000
1 2 3 4 5 6 7 8 9 10 11 12
-500,000
-
-1,000,000 1 2 3 4 5 6 7 8 9 10 11 12
Months
M onths
Sales Forecast Cash flow
3,000,000
5,000,000
4,500,000
2,500,000
4,000,000
3,500,000
2,000,000 Ye ar 5
Ye ar 4 3,000,000
Baht
Baht
1,500,000 Ye ar 3 2,500,000 Cash flow

Ye ar 2 2,000,000
1,000,000 Ye ar 1
1,500,000
1,000,000
500,000
500,000
0 -
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5
Months Years

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Budget and source of fund
Item Total Source of fund (loan)
1. Current fund
1.1 Cash for purchasing goods
1.2 Cash for operating 1,599,100 1,599,100
Total current fund 1,599,100 1,599,100
2. Fixed Assets
2.1 Land 4,000,000 4,000,000
2.2 Building 673,337 673,337
2.3 Equipment 155,863 155,863
2.4 Tool 1,550,000 1,550,000
Total Fixed Assets 6,379,200 6,379,200
3. Pre-operating expense
3.1 Electronics register expense 4,450 4,450
3.2 Water supply register expense (2 Inch) 4,100 4,100
3.3 Telephone register expense 3,750 3,750
3.4 Company registering 9,400 9,400
Total Pre-operating expense 21,700 21,700
Total Cost of project 8,000,000 8,000,000
Ratio: 100% 100%

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Market Expense
Marketing Cost in Year 1

Price/Unit Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total
FM 95.5 1,000 5,000 5,000 1,000 0 0 0 0 0 0 0 0 0 11,000
FM 95.75 1,000 5,000 5,000 1,000 0 0 0 0 0 0 0 0 0 11,000
FM 102.5 1,000 5,000 5,000 1,000 0 0 0 0 0 0 0 0 0 11,000
Flyer 3000 copies 4 3,225 3,225 3,225 3,225 0 0 0 0 0 0 0 0 12,900
Posters 1,500 1,500 0 0 0 0 0 0 0 0 0 0 0 1,500
Total 19,725 18,225 6,225 3,225 0 0 0 0 0 0 0 0 47,400

FM 95.5 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
FM 95.75 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
FM 102.5 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Flyer 3000 copies 4 0 0 0 0 0 0 0 0 0 0 0 0 0
Posters 1,500 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

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FM 95.5 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
FM 95.75 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
FM 102.5 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Flyer 3000 copies 4 0 0 0 0 0 0 0 0 0 0 0 0 0
Posters 1,500 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

FM 95.5 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
FM 95.75 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
FM 102.5 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Flyer 3000 copies 4 0 0 0 0 0 0 0 0 0 0 0 0 0
Posters 1,500 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

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FM 95.5 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
FM 95.75 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
FM 102.5 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000
Flyer 3000 copies 4 0 0 0 0 0 0 0 0 0 0 0 0 0
Posters 1,500 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

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Loan
Year 1
Period (Month) January February March April May June July August September October November December Total
Principals 8,000,000 7,962,052 7,923,772 7,885,157 7,846,204 7,806,910 7,767,273 7,727,288 7,686,954 7,646,267 7,605,224 7,563,822 7,522,057
Installment debt
payment 37,948 38,280 38,615 38,953 39,294 39,638 39,984 40,334 40,687 41,043 41,402 41,765 477,943
Interest expense 70,000 69,668 69,333 68,995 68,654 68,310 67,964 67,614 67,261 66,905 66,546 66,183 817,433
VAT (7%) 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 90,676
Total debt
purchasing 8,070,000 8,031,720 7,993,105 7,954,152 7,914,858 7,875,221 7,835,236 7,794,902 7,754,215 7,713,172 7,671,770 7,630,005
Year 2
Principals 7,522,057 7,479,927 7,437,428 7,394,558 7,351,312 7,307,688 7,263,683 7,219,292 7,174,513 7,129,342 7,083,775 7,037,810 6,991,443
Installment debt
payment 42,130 42,499 42,870 43,246 43,624 44,006 44,391 44,779 45,171 45,566 45,965 46,367 530,614
VAT (7%) 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 90,676
Total debt
purchasing 7,587,875 7,545,376 7,502,506 7,459,260 7,415,636 7,371,631 7,327,240 7,282,461 7,237,290 7,191,723 7,145,758 7,099,391

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Year 3
Principals 6,991,443 6,944,670 6,897,488 6,849,893 6,801,882 6,753,450 6,704,595 6,655,312 6,605,598 6,555,449 6,504,861 6,453,831 6,402,354
Installment debt
payment 46,773 47,182 47,595 48,011 48,432 48,855 49,283 49,714 50,149 50,588 51,030 51,477 589,089
VAT (7%) 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 90,676
Total debt
purchasing 7,052,618 7,005,436 6,957,841 6,909,830 6,861,398 6,812,543 6,763,260 6,713,546 6,663,397 6,612,809 6,561,779 6,510,302
Year 4
Principals 6,402,354 6,350,427 6,298,045 6,245,205 6,191,902 6,138,133 6,083,894 6,029,180 5,973,987 5,918,312 5,862,149 5,805,495 5,748,345
Installment debt
payment 51,927 52,382 52,840 53,302 53,769 54,239 54,714 55,193 55,676 56,163 56,654 57,150 654,009
VAT (7%) 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 90,676
Total debt
purchasing 6,458,375 6,405,993 6,353,153 6,299,850 6,246,081 6,191,842 6,137,128 6,081,935 6,026,260 5,970,097 5,913,443 5,856,293

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Year 5
Principals 5,748,345 5,690,695 5,632,541 5,573,877 5,514,701 5,455,006 5,394,790 5,334,046 5,272,771 5,210,960 5,148,608 5,085,710 5,022,262
Installment debt
payment 57,650 58,154 58,663 59,177 59,694 60,217 60,744 61,275 61,811 62,352 62,898 63,448 726,083
VAT (7%) 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 90,676
Total debt
purchasing 5,798,643 5,740,489 5,681,825 5,622,649 5,562,954 5,502,738 5,441,994 5,380,719 5,318,908 5,256,556 5,193,658 5,130,210
Year 6
Principals 5,022,262 4,958,259 4,893,695 4,828,567 4,762,869 4,696,596 4,629,744 4,562,306 4,494,278 4,425,655 4,356,431 4,286,602 4,216,162
Installment debt
payment 64,003 64,563 65,128 65,698 66,273 66,853 67,438 68,028 68,623 69,224 69,829 70,440 806,100
VAT (7%) 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 90,676
Total debt
purchasing 5,066,207 5,001,643 4,936,515 4,870,817 4,804,544 4,737,692 4,670,254 4,602,226 4,533,603 4,464,379 4,394,550 4,324,110

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Year 7
Principals 4,216,162 4,145,105 4,073,427 4,001,122 3,928,183 3,854,607 3,780,387 3,705,517 3,629,993 3,553,807 3,476,955 3,399,430 3,321,227
Installment debt
payment 71,057 71,678 72,306 72,938 73,576 74,220 74,870 75,525 76,186 76,852 77,525 78,203 894,935
VAT (7%) 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 90,676
Total debt
purchasing 4,253,053 4,181,375 4,109,070 4,036,131 3,962,555 3,888,335 3,813,465 3,737,941 3,661,755 3,584,903 3,507,378 3,429,175
Year 8
Principals 3,321,227 3,242,340 3,162,762 3,082,489 3,001,512 2,919,828 2,837,428 2,754,308 2,670,460 2,585,878 2,500,557 2,414,489 2,327,667
Installment debt
payment 78,887 79,578 80,274 80,976 81,685 82,400 83,121 83,848 84,581 85,322 86,068 86,821 993,560
VAT (7%) 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 90,676
Total debt
purchasing 3,350,288 3,270,710 3,190,437 3,109,460 3,027,776 2,945,376 2,862,256 2,778,408 2,693,826 2,608,505 2,522,437 2,435,615

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Year 9
Principals 2,327,667 2,240,086 2,151,739 2,062,619 1,972,719 1,882,032 1,790,552 1,698,271 1,605,183 1,511,280 1,416,556 1,321,003 1,224,614
Installment debt
payment 87,581 88,347 89,120 89,900 90,687 91,480 92,281 93,088 93,903 94,724 95,553 96,389 1,103,054
VAT (7%) 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 90,676
Total debt
purchasing 2,348,034 2,259,687 2,170,567 2,080,667 1,989,980 1,898,500 1,806,219 1,713,131 1,619,228 1,524,504 1,428,951 1,332,562
Year 10
Principals 1,224,614 1,127,381 1,029,298 930,356 830,549 729,868 628,306 525,856 422,509 318,258 213,095 107,012 0
Installment debt
payment 97,233 98,083 98,942 99,807 100,681 101,562 102,450 103,347 104,251 105,163 106,083 107,012 1,224,614
Interest expense 10,715 9,865 9,006 8,141 7,267 6,386 5,498 4,601 3,697 2,785 1,865 936 70,762
VAT (7%) 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 7,556 90,676
Total debt
purchasing 1,235,329 1,137,246 1,038,304 938,497 837,816 736,254 633,804 530,457 426,206 321,043 214,960 107,948

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CHAPTER 6
Risk Management
Risk concerns the expected value of one or more results of one or more future events.
Technically, the value of those results may be positive or negative. Risk may occur under
many limited of recourses both inside and outside the company such as company’s decision,
budget, time, or special technical. However, general usage tends focus only on potential harm
that may arise from a future event, which may accrue either from incurring a cost ("downside
risk") or by failing to attain some benefit ("upside risk"). Risk can occur all the time from
uncertainty of company’s environment and the limit of resources so the company have to find
the causes of risk and try to face or reduce it to work with the potential performance and meet
the company’s goal.
Risk is defined in the different meaning but overall it will mean the effect of the
company that doesn’t meet the expectations, uncertainties or the opportunity. The result of
risk may lead to company’s problems, losses from unwanted or chance something will
happen that will affect the business activities or plans. Nature of risk may be divided into 4
main categories include.
1. Business Risk is the changes or uncertain of the ability of company’s profitability
2. Market Risk is the loss of investments due to changes in prices of properties which is
based on demand and supply of market.
3. Interest Rate Risk is the arising from changes in the rate of return on investment due
to the changing of market interest rates.
4. Purchasing Power is from the arising of purchasing power of money is down. Which
primarily affect of purchasing power is inflation.
In generally, risk can define in 2 factors are External Forces and Internal Forces.
The external forces are technological change, customer needs, economic condition, laws and
regulations, government stability, competitive condition, money and capital markets, foreign

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exchange market, labor market and catastrophe. The internal forces are operating risk,
technological risk and financial risk.
Business risk
Business risk is the internal risk from the changing or uncertain of

unexpected results which related with the return on investment of the company properties.
The factors of business risk as follow:
1. Demand Variability: If demand of purchasing power is lower. It will lead to risk to

the company. In other side, if the company has the number of sales and the certainty
of selling price that will reduce the occurring of the risk.
2. Sale price variability is the change of price. The reducing prices to get the high
number of sales may be the factors of occurring risk to the company.
3. Input cost variability is the changing in company’s costs. In the case of operating
costs or the cost of ordering or importing any products from outside has the high
uncertainty of price so the level of risk is higher also.
4. Ability to adjust output prices for change in input costs is the ability of the
company to adjust prices when the cost of services or production increases. In the
businesses world, they need to adjust the selling price to get the high return on
investment and profit back to the company. The adjust prices in higher may be the
cause of high risk to face with the competitors.
5. Fixed costs are the obligation to the company. If the percentage of fixed cost is high
but the demand of the product is low. It may rise the high percentage of occurring risk
to the company.
Moreover, the company can divide risk that will effect to the company in 5 categories.
The company searches for the solutions for facing risk in the operation level such as
operating risk, market risk, financial risk and management Risk

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1. Operation Risk
The nature of risk in recycling company could cause accidents and damage to the
separating people, machines, chemicals or environmental equipment. Reasons may come
from the people, machine, operation system and equipment. The company will reduce the risk
by create the good environment of working place, insurance, training, operational preparation
methods and management system. As well as take care of the machines and people in the
company. All process should do in management system for reducing the impact of risk that
will occur to the company.
2. Market Risk
Marketing risk is the risk that customers who do not pay money for
product or service to the company. Sri Cha Learn Company has taken measures to prevent
this cause by checking the history of customers by using customer relationship management
and research the condition of the market. It can help the company to reduce the possibility
that risk.
3. Financial Risk
The increasing of risk that relate to the finance structured and cost of capital which
may be added to the business. Increasing of interest rates may affect to the profit and loss of
business, company activities or increase time to pay back to investor. Moreover, the result of
increasing from the tax rate, the company will have to pay more when company revenue
increased.
Moreover, the foreign exchange rate changes may effect to the supply and demand of
the company. The economic conditions, economic policies also affect the results of earnings
money from investors. Sri Cha Learn Company will reduce the result of financial risk by
doing research and forecasting of economic trade in global recycling market.

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Risk financial analysis
Sales decrease 5 %
Year 1 Revenue = 2,997,352 Baht
From sales decrease 5% it makes income statement follow as:

Income Statement Year 1 = -265,333 Baht
Income Statement Year 2 = 374,475 Baht
Sales decrease 10 %


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Sales decrease 15 %

4. Management Risk
Risk management issues from wrong management process or wrong decision. That could
cause the accidents to the employee, get loss or any problems in the company. This may
affect the cost and revenue earnings to the company, which is delicate and complex.
SriChaLearn Company solve this problem by training the employee, give the satisfaction
salary, controls the operating process and separate responsibilities (Segregation of Duty) of
employee to the impact of working.

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Risk assessment
Risk Assessment is an important process in risk management. This process will focus
on opportunities and assess the severity of the incident to the objective. While one event may
result in low risk but one event may have an impact on high-level objectives. The generally
risk assessment can be made both in qualitative and quantitative evaluation. Based on the
incident from both inside and outside the organization, the company also should assess the
risk before risk management (Inherent Risk) and after risk management (Residual Risk).
Planning for the risks that will occur in your business is critical to your success. Here are
some basic steps to help you make certain you have an adequate risk program in place.
How to Manage Risk in Your Business
Planning for the risks that will occur in your company is critical to your success. Here
are some basic steps to help you make certain you have an adequate risk program in place.
To manage risk in your business:
1. Write your business plan.

2. Go through your business plan critically looking at every area that could involve risk,
making a list of what areas you need to consider.
3. Take time, preferably with others who know your business, to brainstorm all the
possible catastrophes that might occur.
4. From your lists developed in steps 2 and 3, decide what action or coverage is needed
to handle that possibility.
5. For those risks that can be handled by insurance coverage, determine how much and
what type of insurance is needed.
6. Choose a reasonable amount of insurance to cover those risks.
7. Contact more than one insurance agent to get quotes on the insurance that is needed.
8. Arrange for insurance coverage to begin before the doors open on your business, if
possible.

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9. For those risks not covered by insurance, put together a contingency plan for handling
each of the risks identified.
10. Train all employees in what to do in any if any of these (or other) emergencies arise.
11. Put your plan in a place where it can be located quickly, if needed. Have an extra
copy in a safe location.
12. Review your plan annually, including input from all employees.
Risk Management Tools
The most common tool used in risk management is insurance. Besides the standard
health, life, and possibly disability insurance, you need to look at the types of liability and
property insurance you may need. Specialized insurance for particular risks in your business
can also be necessary. For instance, if you have a chemical component of your production
process, you may want special toxic risk insurance. Think comprehensive, and then pare it
down to fit the level of risk you are comfortable with. Many people prefer a comprehensive
policy that has a large deductible which reduces the cost of the policy.
As with any purchase, get a number of quotes - and don't choose the cheapest one. No
two policies are identical. Look carefully at the pluses and minuses of each policy, the agent,
and the insurance company before making a decision. Be certain to arrange for the insurance
coverage to start before you open for business. This seems like common sense, but in the rush
to get money coming in the door it is often put off. It may take some time for the policy to be
written if valuations need to completed or other information checked. Do not expect to decide
and have a policy in place the next day.
You still need to deal with those risks you didn't insure against. Each needs a
contingency plan; i.e., what are you going to do if this event happens? Write the plan down.
Then train every employee what to do in the event something unexpected happens. If a robber
comes in and demands the cash in the cash register, what action should they take? If the
computer shuts down and won't reboot, what do they do? Put the plan in a place that it is
easily accessible and have an extra copy in a safe location. Additionally, you will want a

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good accounting and financial control information system to alert you to problems that might
be arising in cash flow, thefts, fraud, or other financial trouble spots in the business.
Your insurance and your contingency plans are your risk management system. Don't
just put them in a safe place, however. Make it an annual commitment to review the system
and update it as necessary. No startup is a static venture. Likewise the components of the
startup should also not be static. Involve your employees as much as possible. They, more
than anyone, can spot the flaws that can be tomorrow's disaster.
Should you need additional financing at some point, having a good risk management
system in place will impress the lender and may make the difference in obtaining the funds
your need. In fact, a good risk management system should provide the information you need
to know exactly when you need to seek additional financing and give you as very clear
picture of what your needs will be. It can be an information system about how your business
is doing as well as a system to control risk.
Source:
http://www.siaminfobiz.com/mambo/content/view/45/27/
http://www.tsi-thailand.org/wiki/index.php
http://www.smallbusinessnotes.com/operating/finmgmt/htrisk.html
http://www.smallbusinessnotes.com/operating/finmgmt/riskmgmt/risktools.html

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CHAPTER 7
Summary
1. Background and Reason

Are you one of the few people that recycle? If not, do you know where all your
garbage goes? 85 percent of our trash is sent to landfills. That's a very high percent and trend
to increase waste volumes every year. In turn in Thailand, it happen the same. Sri-Cha-Learn
Recycling Company has collected the information about the quantity of waste and the
number of recycle business in ChiangRai from the reliable institution. According to the
quantity of waste in ChiangRai, the company sees the opportunity to do waste recycle
business. The number of waste is increasing continuously in each year. Moreover, this kind
of business gets less attention from the entrepreneurs and there is not junk shop enough in
ChaingRai compare to quantity of wastes. Waste recycling business can generate high profits
to entrepreneur.
Product/Service
There are many kinds of recycling waste that our shop purchased to the process of
recycling. The importance factors that we concerns are the safety of products and human,
transportation and regulation. The product that our shop purchased will be as follow: steel,
plastic, bottle and paper. In turn, “Best service with smile”, the company has to make the
customer’s loyalty by creating the impression to the customer by services such as service
satisfaction over quickly, clean and good workplace or pay money on time.
2. Business Environment
The company focuses on the Macroeconomic which will effect directly to the
company, it consist of the political, economy, social and environment, technology and
competitors. The company analyzes the external environment to find the opportunity for
doing the business and protect the company from the unexpected situation. With the potential
information and good plan, it help the company can face with the highly competition and
meet the company’s goal.

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3. Human Resource
This is the structure of employee inside the company which manages people to
respond all tasks. The number of employee each role will be the most suitable and worthiest
compare to administration cost. The company will plan to give the training job for
employees.
Roles Quantity
General Manager 1
Specialist Accountant 1
Specialist Technician 1
Public Relation and Customer Service 1
Machinery Professional 6
Metal cutter 3
Filler piece versatile machine 3
Scale and Weight Machine 1
Professional
Specialist Product Separation 3
Truck Driver Professional 1
Excavator and Forklift Driver 1
Professional
Total 16
4. Marketing
Marketing Mix:
Product, the main product of the company is recyclable products. The company will
buy waste from scavenger or small waste recycle store and sell them to the factory to get into
processing of recycle.
Price, it will depend on the price in the market in Bangkok but the company may
adjust to suitable for Chiang Rai market. The company will set better price at beginning of
market to attract customer and increase market share. Refer to Price differentiation strategy.
Place, Sri-Cha-Learn is located Maekorn sub district where has the large area for
collecting inventories, near the city, convenience transportation, clean workplace, and good
environment.
Promotion, the company will advertise on radio, poster and brochure to promote the
company. Moreover, words of mouth will be the good way also.

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5. Production Processing
First step Second step Last step
First step, required for recycling is collecting recyclable materials from customers.
The second step, involves processing the recyclable materials. This includes sorting
the materials into groups (separate), cleaning them and getting them ready with the high
technology machines.
The last step, sold to manufacturers who will turn the materials into new products.
6. Risk Management
- Operation Risk
Reasons may come from the people, machine, operation system and equipment. Sri
Cha Learn company will reduce the risk by create the good environment of working place,
insurance, training, operational preparation methods and management system.
- Market Risk
Marketing risk is the risk that customers who do not pay money for product or service
to the company. Sri Cha Learn Company has taken measures to prevent this cause by
checking the history of customers by using customer relationship management and research
the condition of the market. Then, the company will use differentiation strategy to create
advertising and promotion.
- Financial Risk
Sri Cha Learn Company will hire Specialist Accountant to take care of financing
system. In case of increasing of interest rates, decreasing of price and getting down of sales.
The company will reduce the result of financial risk by doing research and forecasting of
economic trade in global recycling market.
In financial, company has an 8,000,000 to invest in beginning dividend as fixed asset
6,379,200 Baht and cost before operation 1,620,800. The company loan money about

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8,000,000 baht by interest 10.5% per year in 10 years. The sales forecast of company in year 1
to year 5 increasing follow as:
Sales Year 1 = 3,151,659 Baht

From sales forecast of Sri Cha Learn company, it makes the company has income
statement in each year follow as:
Income Statement Year 1 = - 118,201 Baht

Income Statement Year 4 = 1,011,792 Baht
Income Statement Year 5 = 1,095,944 Baht
From financial forecast of business as 5 years, the pay back period of Sri Cha Learn
equal 2 years 7 months.

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Project Feasibilty Study and Evaluation - Aj. Chaiyawat Thongintr. Mae Fah Luang University (MFU) 2010

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Project Feasibility Study and Evaluation

Sri Cha Learn Recycling Company

Miss Pairor Boonchaloei 4931203077

Mae Fah Luang University

Chapter 2: Industry Profile

Chapter 3: Market Feasibility Study

Chapter 4: Technical Feasibility Study

Project Feasibility Study and Evaluation

Chapter 5: Financial Analysis

Chapter 6: Risk Management

Project Feasibility Study and Evaluation

Table 1 Quantity of solid waste by province of northern region 3

Project Feasibility Study and Evaluation

Project Feasibility Study and Evaluation

Background and Significance of the Project

According to quantity of solid waste in Chiang Rai trend to increase

Project Feasibility Study and Evaluation

Provincial Quantity of Solid (ton per day)

Table 1: QUANTITY OF SOLID WASTE BY PROVINCE OF NORTHERN

Project Feasibility Study and Evaluation

Quantity in ton per day

Area/Region Quantity Percent

Table 1.1: QUANTITY OF SOLID WASTE BY DISTRICT AND MUNICIPALITY

Source : Pollution Control Department, Ministry of Natural Resources and

Project Feasibility Study and Evaluation

1. To study the process of capital requirements in the recycling business.

1. Gathering the information about the process of capital requirements in the

Project Feasibility Study and Evaluation

Operation Plan November December January February

Project Feasibility Study and Evaluation

Project Feasibility Study and Evaluation

Recycling helps reduce the amount of trash that is disposed of in landfills.

Project Feasibility Study and Evaluation

Project Feasibility Study and Evaluation

Quantity of Waste in ton per day

Area/Region Quantity Percent

Table 2.1: QUANTITY OF SOLID WASTE BY DISTRICT AND MUNICIPALITY

Project Feasibility Study and Evaluation

Company’s Quantity of purchasing per day (ton per day)

Wongpanit 1.869 0.460 3.000 0.050 0.060 0.230 2.546 8.215

Table 2.2: COMPANY’S COMPETITORS IN CHIANGRAI

Project Feasibility Study and Evaluation

Vision of the company

Project Feasibility Study and Evaluation

Figure 2.1 : Steel

- short thick steel (Length not exceeding 80 cm.)

Project Feasibility Study and Evaluation

Figure 2.2 : Plastic

Figure 2.3 : Bottle

Project Feasibility Study and Evaluation

Figure 2.4 : Paper

- cardboard brown box

Project Feasibility Study and Evaluation

Figure 2.5 : Metal

Project Feasibility Study and Evaluation

2. Weighing machine is guaranteed the standard by Ministry of Commerce. Getting the

Project Feasibility Study and Evaluation

Sri-Cha-Learn shop is a shop that has highly competition environment and

Project Feasibility Study and Evaluation

In Functional level, Sri-Cha-Learn Recycling Store can be divided into 2 parts,

The advantage of marketing to business is to promote the business to the

Marketing Strategies that Sri-Cha-Learn Recycling Store use as follow: