max

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MAX Freight Service Forwarder Company

SEAT 11

Name ID E-Mail Tel.

Pipat Thawonwijit 5131203031 [email protected] 084-4809451

Yue Zhao 5131203507 [email protected] 085-6270818

Kritika Sachaphibulkij 5231203004 [email protected] 085-0412096

Kanpicha Channgam 5231203008 [email protected] 081-6835816

Jutarat Setar 5231203027 [email protected] 086-9122245

Chompoonoot Khuankaew 5231203030 [email protected] 087-5663654

Sasithorn Saengmanee 5231203118 [email protected] 086-9413559

Rachakorn Sonthiphumath 5331203182 [email protected] 089-9984404

A TERM PROJECT

SUBMITTED IN PARTIAL FULFILLEMNT OF THE REQUIREMENTS

OF 1203302 PROJECT FEASIBILITY STUDY AND EVALUATION

MAE FAH LUANG UNIVERSITY

SECOND SEMESTER, 2011

mailto:[email protected]








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Exclusive Summary

The logistic have role importance to support the distribution to the market because the

logistic have duty in the movement the factor of production from the various supply sources to

industry for use in produce. When produce the product finished will be passing to store in the

warehouse for delivery to forwarder until customers receive in the time. Moreover, the logistic

effect to total cost in support distribute goods to market because the cost in transport the goods

is some costs that use determine price of goods that sale in the market. Which the most

forwarder company in Chonburi use service of logistic company that the customers unknown

cause the customer distrusts in service logistic in far distance because afraid to the product

damage but MAX Freight Service Forwarder Company are different that use the service of

company that the people known and recognize in group people in the world which can

confidence that the product is delivered with our company will be safe and remain original

condition throughout transportation. Our company has many channels in transport by customers

can selected as suitable such as ship, truck, and airplane because our company want to provide

confidence, satisfaction and impression to use the our service from our company to customers

because the our service of company focus on quality and the service better than others

company. Moreover, we will bring new technology enter invest service to customers.

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Table of Content

Title Page

Exclusive Summary I

Table of Content II

Chapter 1: Introduction 5

Background of the Project 6

Project Objectives 7

Benefits of Project 7

Activities/ Time Frame 8

Chapter 2: Industry Profile 10

Nature of industry 10

Situation of industry 11

Vision and mission of the company 12

Product/Service 13

Business Strategy 16

Corporate Level 17

Business Level 17

Functional Level Strategies 28

Chapter 3: Market Feasibility Study 30

3.1 General Environment Analysis 30

3.2 Competition Analysis (3C Analysis) 31

3.3STP Analysis 37

3.4 Marketing Mix Strategy 39

3.5 Sales Forecast/Profit Estimation 43

3.6 Marketing Expenses 54

3.7 Conclusion 58

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Table of Content

Title Page

Chapter 4: Technical Feasibility Study 59

Service Characteristic 59

Production/Services Process 64

Location 65

Facility Layout 67

Logistics management 71

Logistic activities 72

Machine Tools, Equipment and Office supplies 74

Cost of Investment 92

Company Limited Memorandum of Association Registration 93

Cost of require electricity industries 94

Investment Cost 96

Depreciation 99

Chapter 5: Operations Cost 139

Chapter 6: Administration Cost 159

Chapter 7: Financial Management 180

Chapter 8: Risk Management 195

Chapter 9: Summary 204

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Chapter 1

Introduction

Background and Significance of the Project

The geographical location of Thailand is bonded with neighbouring countries such as

Myanmar, Laos, Cambodia, and Malaysia and also has the access to China and Vietnam. It acts

as a gateway to South East Asia region. It has an advantage of its large hinterland. Therefore,

the port has high capacity to develop to be a gateway port by inviting those neighbouring

countries to be its hinterland.

Max Freight Service (MFS) is a company that provides trade, industrial contents and

related freight broker service of manufacturing and logistics industries in Thailand. We are the

agent which provides import and export products and service to customers. Our forwarder

company locates in the Laem Chabang Port of Chonburi Province. Laem Chabang Port,

located in the eastern part of Thailand, covered an area of 2,572 Acres, is the main deep sea

port of Thailand that offers universal services in order to exchange goods worldwide. This port

is also near the biggest international airport of Thailand- suwannaphum international airport

about 80 km to Bangkok.

Laem Chabang Port is promoted by the Government to be the country’s main port replacing the

Bangkok Port which was limited the freight containers not to exceed 1.0 million TEU since

1996. As it has the modern infrastructure and high-technology facility to support all services. It

is capable to handle largest vessels (Post Panamax). It has sufficient supporting areas for

docking operations and related activities. Moreover, the port is nerved by network of highways,

railways, and waterways; connecting both the country regions and neighbouring countries.1

Furthermore, Laem Chabang Port has sufficient areas to extend related business such truck

terminals, distribution centre, free trade area, etc. and also to include other crucial facilities

1 http://www.laemchabangport.com

http://www.laemchabangport.com/

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such as hazardous bulks warehouse and fire damage prevention centre. These facilities are

approved for international standard to be ready to provide all services.2

Currently, there are already a number of forwarder organizations in the Laem Chabang

Port of Chonburi, such as Pattaya Freight Forwarder Co.Ltd, A-Z Freight Forwarder Co.Ltd

and Laem Chabang Port Co.Ltd. By the significant increasing of the amount of Import and

Export of Thailand, which import grows from $118 billion to $161.3 billion in 20103export

amount also grows definitely from $150.7 billion to $193.5 billion in 2010.4, therefore the

market need of freight forwarder industry is also increasing and growing. So the significance of

our project is to create a new freight forwarder company to share this market resource which

can be successful by working within a well-planned organization offering discounted

transportation costs and effective marketing strategies. The company will grow based on the

acquisition of agents both nationwide and international operating.

Our agent members who want to be successful and profitable must be aligned with a

finely-operated, efficient organization. We will definitely support techniques and equipment for

minimizing costs and maximizing profits, including an advanced computer system designed

specifically for the freight industry. By custom designing our strategies, we will have the

flexibility to meet the needs of various marketplaces.

We are the middle man of the shipping industry which provides a service by linking

customers with shippers and trucking companies and make the best choice when moving goods

throughout this country as there are literally hundreds of different shippers offering thousands

of different services. The freight brokers make the process of securing a shipper quite easy with

one-stop shopping. We will provide service for each shipment at very competitive rates that

attract our customers as much as possible.

2 http://www.azfreight.com/cfm/homepage.cfm

3 http://www.indexmundi.com/thailand/imports.html 4 http://www.indexmundi.com/thailand/exports.html

http://www.azfreight.com/cfm/homepage.cfm

http://www.indexmundi.com/thailand/imports.html

http://www.indexmundi.com/thailand/exports.html

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Project Objectives

To analyze the alternative of projects, include Managerial Feasibility, Economics

Feasibility, Financial Feasibility, Environment Feasibility, Safety Feasibility, Culture

Feasibility, Social Feasibility, Political Feasibility, and Market Feasibility.

To analyze the sustainability of the financial system (Financial & Fiscal Sustainability)

and the sustainability of the project. (Institutional Sustainability)

To analyze the impact of projects that will happen. (Distribution of Project Effects)

To analyze some factors that can abstract the business in the real life such as economic

situation, customer behavior and also the strength and opportunities of our competitor.

To study about business planning, both short and long term to be one of the Forwarder.

We are like a customer agency that transfers both in domestic and international.

Benefits of Project

Know about planning before making a decision in doing the business.

To be well knows in world widely and accept in generally.

Increasing knowledge about doing projects and applied in daily life

Get to know about how to connect with other business which that related with transport

business.

Get to know about the approach of project case study for successfully in business.

Evaluating feasibility and impact of this business.

Understanding the trend and situation of this business.

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Activities/ Time Frame

Project Step

November December January February

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Think about the topic

Research and development

-Study information from websites

and books

-Fide a suitable location to compute

the budget

To make introduction report

-Background and Significance of the

Project

-Project Objectives

-Benefits of Project

To make industry profile report

-Nature of Industry

-Situation of Industry

-Product/ Service

-Strategy

To make Market Feasibility Study

report

-Market Analysis

- General Environment Analysis

- 3C Analysis

-STP Analysis

-Marketing Mix Strategy

-Sales Forecast/ Profit Estimation

To make technical analysis report

-Administration Analysis

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-Cost Structure

To make financial analysis report

-Profit Loss Statement

- Balance Sheet

- ROE, IRR, NPV

To make risk analysis report

-Risk from management/ Operation

To make sum up result feasibility of

business report analysis

-Submit draft final report

Final Report

Grand Opening

10

Chapter 2

Industry ProfileNature of Industry

Forwarder is a person or company that organizes shipments for individuals or other

companies and may also act as a carrier. A forwarder is often not active as a carrier and acts

only as an agent, in other words as a third-party (non-asset-based) logistics provider that

dispatches shipments via asset-based carriers and that books or otherwise arranges space for

these shipments. 5The freight industry mainly serves those customers who want to transport

their goods by linking them to the companies that offer the best services at cheaper rates. The

functions of the freight forwarding industry differ from those of the freight broker in that the

freight broker does not take into possession the goods being transported as it is the case with

the freight forwarder. The forwarder assumes responsibility as if he/she is transporting their

goods. To achieve this, he/she places himself/herself in the shoes of the client by trying to

understand the delivery requirement of the client deeply. Carrier types include ships, airplanes,

trucks, and railroads. International freight forwarders typically arrange cargo movement to an

international destination. International freight forwarders, have the expertise that allows them

to prepare and process the documentation and perform related activities pertaining to

international shipments. Some of the typical information reviewed by a freight forwarder is the

commercial invoice, shipper's export declaration, bill of lading and other documents required

by the carrier or country of export, import, or transshipment. Much of this information is now

processed in a paperless environment. So, it can help for consumer such as help you export

economically, help you export safely, help you stay in compliance, easy and reliable, etc. In the

past represents the shipping of activities for products and suppliers to deliver the goods to

provide transport the cargo to be delivered to the receiver, known as "Consignee" or in a

manner contrary “Freight Forwarder” to carry goods from shipper to deliver to the receiver or

"Consignee" When a product arrive at the destination port as an agent of the receiver or

consignee.

5 http://EzineArticles.com/?expert=Brijesh_P_Ghelani

Article Source: http://EzineArticles.com/6122417

http://ezinearticles.com/6122417

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Situation of Industry

Today, exports to other countries, has developed the capacity to provide wider than in the past

because of the current business trend rising. At the rate of economic growth in the economy in

the years 2010-2011, each year shows the trend in the economic outlook remains positive.

Although the risk of floods and the global economic volatility.6

Figure: Expected business condition index.

Quarter 4 / 2554 (October - December 2554) and the year 2555.

In the meantime, in another 4 years for Thailand to move into "AEC"7 perfect condition

and has resulted in the growth of fast growing group of investors forwarder. Includes

investment we are under the SMEs, also stand for the standard of Thailand policy because it

can make our company reliable and can stand in the uncertainty economic. The activities cover

a wider range of business activities, including Arrange for pickup,

Fumigation if needed, File AES documentation, Process bill of lading, Process additional

documents if needed, Certificate of origin and Insurance certificate etc. These are the many

things Max Freight Service Forwarder Company in any way the customer wants from us.

6 Retrieved from http://www.price.moc.go.th/price/fileuploader/file_cyc/csbq042554.pdf

7 Retrieved from http://www.matichon.co.th/news_detail.php?newsid=1308117381&grpid=no&catid=&subcatid

http://www.price.moc.go.th/price/fileuploader/file_cyc/csbq042554.pdf

http://www.matichon.co.th/news_detail.php?newsid=1308117381&grpid=no&catid=&subcatid

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Vision of the company

To build the organization required to allow our customers (cruise suppliers and cruise

Lines) to outsource all logistics requirements domestically, internationally, and

globally.

Our vision is simple - with the theme of "POWER OF ONE", all network members

shall become more than just a local player, but rather a worldwide leader in the marine

industry, providing services to local and worldwide customers of any size.

Our intention is to achieve what multinational forwarders cannot; to meet the Critical

Success Factors of customers. Our ambition is customer driven - we are very much

aware that our customers have a choice as to service provider.

Mission Statement

Here at MAX Freight Service Forwarder Company, our constant mission is to provide

the highest quality of service, whether it is by air, sea, road or rail at a competitive rate that will

meet all our client requirements each and every time efficiency and reliability, with a high

standard of service. And have a joint venture with the government and private sectors in port

operations and related business to develop the transportation system and goods transfer;

enabling to establish logistics chain and promote alternative transportation network.8The

government wants to accelerate the restoration of the status of the country this year on the

world stage and the stage of ASEAN. Change from the current situation in ASEAN,

ASEAN leaders to return again. To support the ASEAN Community will

be liberalized in2558 with the role of the Ministry of Foreign Affairs to drive

the economic and trade more. Accelerate the restoration of a strong relationship with our

neighbors. And immediately end the war with neighboring countries and then switch back

to the battle field of trade.

8 http://www.matichon.co.th/news_detail.php?newsid=1308117381&grpid=no&catid=&subcatid=

http://www.matichon.co.th/news_detail.php?newsid=1308117381&grpid=no&catid=&subcatid=

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Product/Service

Max Freight Service Forwarder Company is a company focused on services

transportation or shipment of high quality, standard, and customers as confirm international

standards and safety of a product. Therefore have a variety of transportation services needs of

customers and the appropriate status countries delivery, the nature of the product, the state

flexibility of delivery.

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Weight [KG] Price

9DHL

10FEDEX EMS

0.5 1,720 1,950 860

1 1,910 2,150 1,210

1.5 2,100 2,600 1,560

2 2,290 3,000 1,910

2.5 2,480 3,400 2,260

3 2,630 3,800 2,610

3.5 2,840 4,100 2,960

4 3,050 4,600 3,310

4.5 3,250 5,000 3,660

5 3,460 5,100 4,000

Period of delivery FedEx 3-7 days, EMS 7-10 days, DHL 1-5 days from the table can

be compared to the price that we can see some level it may be cheaper and some are

expensive but the quality of DHL in the term of period to deliver the products was earlier

than FEDEX and EMS .It’s depend on customer that which shipment that they want.

9 http://www.smeshipping.com/

10 http://www.fedex.com/ เลือก zipcoad ของปลายทาง 57049

http://www.smeshipping.com/

http://www.fedex.com/

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Cargo Co., Ltd. It is a network of

transportation, with Max Freight Service

Forwarder Company which as a

comprehensive alternative transportation.

That can be forwarded from our

company safely and effectively and the

time of shipping freight within 10

days and the price of Cargo 580 baht

per kilogram. The taxes charge in the price of the shipment.

Ground delivery will be forwarded to the pier for shipment to the customer's needs or aerial that

emergency that cannot be done.

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Business Strategy

Our company has been set about the strategic management to manage the company for

become a leader of logistic international in Thailand and improving competition. While the

globalization trend that will be change rapidly and strong competition, our company have to

follow the situation, information, news for create a new strategy to our company. The company

will emphasize to transportation on domestic and International. Moreover the company

emphasize to common people and Industry.

Figure 2.1: Transportation

Domestic20%

International80%

Transportation

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Corporate Level

Since our company is a company recently founded a company, we are ready to provide

good service to customers, even though our company is not comparable to big companies that

are established for a long time, but we were able to build an satisfy their customers. Compared

to the price of the service, even though our company will be priced higher than some other

companies, but that does not mean that we will take advantage of customers, but to see how our

service is better than other companies. It is quite a lot whether we can transport your goods

with care and enjoy your trip. Product or service from the client to the destination without any

charge we also have advanced technology to help manage the organization. Customers can

check the status of goods shipped via the Internet. And we are ready to compensate for

damages caused by the transport of high limit. Customers do not have to worry that it will be

subject to damages

Business Level

Max Freight Service Forwarder Company is an investment company that has a highly

competitive environment and may be increased under situation of continuous growth of the

economy. Includes compete with competitors in the forefront of a growing nation and has been

accepted by the customer although there is not the same as any other business investment.

However, the way to stand in the high competition environment is making the Differentiation

strategy as follow:

Price differentiation: Price differentiation: The environment of Max Freight Service

Forwarder Company has high competition. The competitors tend to give the customer in the

similar prices, give in the same price or give the fair price from competitors to attract

customers. Max Freight Service Forwarder Company will give the price that meet the customer

satisfaction such as give the standard and fair price. And contract that we do with customers it

shows the company's credibility with our customers and reduce costs with suppliers.

Service Differentiation: Service differentiation: Giving the fair price to the customer.

We have to make the customer’s loyalty by creating the impression to the customer by services

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such as service satisfaction over quickly, highly effective in managing products in the situation

and transport, Build transport network with high-performance organizations, both domestic and

abroad to establish the standard of transport has been recognized from the customers as

possible. And get feedback from all parts including customer service, public transport

companies, shipping companies at the beginning to improve and modify all the errors. So,

Customer satisfaction is the core of our company. Our company gives priority to all opinions

and suggestions of our customers.

Transportation Differentiation:

We will make transport with the network, both domestic and international transport

companies that have reputation and earn the trust of customers all around the world, such as

DHL, FedEx Express, Thai shipper, Tour Loyale Air Cargo, CTI Logistics.co., Ltd etc. So, the

most transport companies will not be responsible for damage to the goods during

transportation. But our company will give you a guarantee for the damage that consists by the

transport from our network company only.

Technology Differentiation:

Advances in the science and technologies into the development of the inventions, and

comfortable in our lives as 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. Technological for FWD systems11

produce

1. Is increasing, the work of the organization.

2. Administrators can see an overview of the organization.

3. Reduce errors in the work.

4. Add in competition with other firms.

11 http://www.aits.co.th/aits/download/fwd-document.pdf

http://www.aits.co.th/aits/download/fwd-document.pdf

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5. Help reduce costs within the organization.

The internal management system can help to work with it. Documents for the program

that will help manage.

Detailed information can be recorded shipper, consignee, agent or FWD such as name, address,

telephone number, contact name Etc,

Data can be stored introduction to the customers, shipper, and agent as intended history to be

reused the next time.

Search information about the customer booking to created documents to confirm customers.

Create documents on B/L, Shipping Particular frame B/L too many Form can create document

about account as issued invoice to customer, debit/Credit note.

Can be cleared revenue - costs between countries.

The report can be issued Pre-booking, Pre-Alert, Load-Plan, and Cargo-Manifest.

Can issue such a booking list report, Balance report, Monthly report, Master control Report,

Net profit report, Receipt & payment, Balance report.

Examples programs of FWD system12

that help manage the work within the organization.

1. Control Management - search documents that can be done on a single screen with a

status of each task in the shipment with the media can tell immediately that any

documents. Have not done and a warning when the document is close to closing. Keep

up the work site.



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2. User management - maintain security of information and levels usage feature.

3. User interface -a program that focuses on ease of use with the development of

applications based on the principle of web application.

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4. Communication Management- this system is part of the notification document through

the screen to work with the department requires each employee to notify the department

about the changes one or more of shipment.

5. Database management - as well because if there is any information not is used longer

than the system will move them to another place and at the end of the year, then it can

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be to keep those documents separately. Shipment will not remain in the system is

running in the next year.

6. Multi form- In the event that more than one form is used to configure various forms in

advance when it comes to the issue of the form a form that is immediately available.

7. Online around the world – be able to online program on internet this feature is web site

can be use everywhere around the world.

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8. Document Management - we have all documentation in the form of a database. It is

very necessary to keep the original documents within the office or rent space to store

the original documents to reduce costs significantly it also helps to find documents in a

simple and fast.

9. Freight Rate Management - systems are used to dealing with the purchase price or sales

price of Freight.

10. Boss Monitor - the program for executives that can easily be monitored shipment

summary report such cases whatever - expenditure - profit and loss over time. You can

create documents to send via Mail or fax immediately.

11. Vessel Schedule - search to the ferry in advance schedule of materials to choose from

right away.

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1. Price List/Quotation Management - this program can be the search details of the

price list or quotation into the system when the revenues - expenses can extract

key information that cannot be used immediately.

2. Container Management - was dealing with container can be managed on the

number of products entering into the incubator.

1. Transport Management - can order and search each car has a maintenance

schedule, the repair bill, can handle a car that is enough.

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In addition, the FWD. system13

, there are other technologies to help facilitate the

organization much more for example technology of AR and technology of RFID these

technologies will come to help in the management of various explore the inside of the box.

There is a crack or not it also helps to find objects that are dangerous, It also helps ensure that

accurate than manual labor inspection, and the cost savings within the organization.

RFID our company chooses RFID label Tags14

:


14

http://www.rfidbasic.com/index.php?page=shop.product_details&flypage=flypage.tpl&product_id=48&category_id=12&option=com_virtuemart&Itemid=15




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Storage and testing

When affixed with RFID tags for goods delivered to distribution centers, the entrance

reader wills automatically reading labels, according to information received, the management

system will automatically update inventory at the same time, according to the needs of the

order, and goods will be sent to the corresponding correct location. This process will process

the traditional acceptance of storage of goods greatly simplified, eliminating the tedious testing,

records, inventory and other large need for human work.15

organize and supplementary goods

Reader with the delivery of mobile car automatically sort out the goods, according to

the instructions of the computer management center automatically the goods to the right place,

at the same time inventory management center computer updates, record the location of the

latest goods. Inventory replenishment system will be less than the specified number of

inventory management center automatically sent to the application, according to the order

management center at the right time to add the appropriate number of goods. In order goods

and inventory restocking, if you find a pile of goods to the wrong place, readers will keep the

management center alarm, according to the instructions, delivery trucks will re-stacking of

these goods to the specified the correct location.16

15 http://www.laowee.com/index.php/2010/09/rfid-technology-in-logistics-management/


http://www.laowee.com/index.php/2010/09/rfid-technology-in-logistics-management/


27

Fill in the order

Through the RFID system, inventory and management center closely linked, and fill in

the order management center will be shipped, a library, inspection, update the inventory

directory integration as a whole, to minimize the mistakes, but also significant savings in

manpower.17

Transport of goods out of library

Application of RFID technology, cargo transport will achieve a high degree of

automation. When a library at the distribution center of goods through the warehouse outlet

effective range of readers, readers automatically read the information on the label goods, do not

need to scan a library can be directly transported to the retailers of goods, and because of the

aforementioned automatic operation, the entire transportation process speed greatly improved,

while all the goods are to avoid the bar code unreadable to the wrong location and storage

conditions occur, the accuracy was greatly improved.18





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Functional Level

In the role of functionality in the company that we will be divided into sections as follows:

Customer Broker: as agent for give the product to the sender or receiver

Packing: managed packaging and we will received include the safe packaging operations.

Business Consultant: is a business consultant for importers and exporters.

Warehouse: that we have the safe warehouse to store goods before the date of shipment. For

convenience, the transport process from the network transport companies that is standard with

our company will send the goods to the customer.

Marketing: is responsible for about market analysis. This is concerned with evaluation the

needs and buying process of consumers, responsible for the exchange, which are concerned

with the details of the order to our company, responsible for facilities that are involved the

standard product to customer orders, product information of conditions and functions in short

supply in some market research that is concerned with until the analysis of marketing data in a

function communication, which is concerned with communication within the organization. So

that understands in the same direction.

Financial: forecasting and planning so, both in short and long term to maintain the liquidity of

the company effectively.

29

Customer Analysis

Figure 2.2: The type of major customer using the service

Customers are divided into two general groups: first group of general person; that need

to transport from 50 kg but not more than 1 ton and second is the company; these are the

customers who have a need to transport from 1 ton up. The group is divided into two groups of

companies that have their own transport, and the group does its own transportation system.

The group has its own transportation system; Groups that use our services in a number

of minor and infrequent, knock off his transport system is already open. We are an alternative

for this goal. However, our company’s also need for these companies, because we are a

company with comprehensive services. These companies will choose to use our services

because it saves both time and cost of maintenance products. And our service was not in them

system.

The group does not have its own transportation system; is important for us to pull our

regular customers. Because their does not have their own transport system, their needs the

services of shipping companies. The importance thing, when they transport each time will give

100 percent of we earn a lot from this

Customers Analysis

company or a juristic person

companies that have their own transport

Company does not have own

transportation system.

general person

30

Chapter 3

Market Feasibility Study

General Environment Analysis

Technology

Technology is very necessary for the logistic even the dominating or international. Every

country needs the technology for managing stock hold, maintaining the amount of product and

increasing the product’s value:

Checking and following the quality of product correctly.

Be able to check and receive information immediately so that it is easy and convenience

to manage the product efficiently.

Have good managing products in the appropriate temperature including normal

temperature and controlled temperature room.

Reporting the information to the customer used for the managing product tools such as

correcting the information, checking the information, communicating with the

customers, and so on that made the management is more accurately and efficiently.

Political

The government’s policies in every period support the exporting together with helping the

customer to expend or increase more the exporting product. The policies also support the small

business like SMEs to be more powerful in the future. Moreover, it also provisions a new

exporting business for example; ready-made garments, Textiles, gem, ornament etc. all the

exporting product must have the agent or logistic company for export the product to the

abroad.19

19Retrieved from http://www.exim.go.th/th/about_exim/government.aspx

http://www.exim.go.th/th/about_exim/government.aspx

31

Economy

The government support and pushing the service business and then create strengthened

of the economic which our company is service’s company because the government’s policy

need economic expansion in every part. Although economy system will slowdown or grown-up

the service logistic business can to do continue because the most business must use service of

logistic business for transport the production’s company so service logistic business

can growing steadily.20

Social and Environment

Nowadays, in the part of social and environment for logistic have the Green Logistics

Campaign which helps increase ability for business sector and industry sector such as reduce

production costs, create value add energy savings and protecting the environment. The

company can use this transport system by use distribution center which can reduce the round to

transport affect to reduce the cost of company and the thing importance is reduce pollution in

the air for protecting the environment.21

Competition Analysis (3C Analysis)

From the information between the investor international freight forwarding business in

Chonburi province that is famous and has international standards. We have analyzed the main

competitors 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. So, it has a lot of open

market of free trade, especially the ASEAN Free trade zones (AFTA) that resulted in more

entrepreneurs both in domestic and foreign entrepreneurs as well as manufacturers, Distributor,

Exporters and importers. Combined with the diverse needs of consumers resulted in operators

have to adapt to competition and survival. In the transport of goods between countries is the

20 Retrieved from http://www.thaigov.go.th/multimedia/admin/policy/surayud3-11_02.html

21 Retrieved from http://logistics.arch56.com/?p=167

http://www.thaigov.go.th/multimedia/admin/policy/surayud3-11_02.html

http://logistics.arch56.com/?p=167

32

same. Operators both shipping lines, airlines companies, Freight Forwarders, need to adapt to

such changes in line with recipients role of logistics management are extremely important in

modern times Because it liken a link between the exporter and importers to achieve the highest

effectiveness and efficiency of exports and imports of goods between countries22

. The

company would like to hold the higher advantage competitive and also use their information to

create the differentiation strategies

Laem Chabang Port Co.,Ltd

Laem Chabang Port, located in the eastern part of Thailand, covered an area of 2,572

Acres, is the main deep sea port of Thailand that offers universal services in order to exchange

goods worldwide. And With the intention to develop Laem Chabang Port to be entitled one of

the World Class Port; all requirements to meet the high standard service provision have to be

implemented. The concept of Laem Chabang Port Co.,Ltd that we can analysis of the

implementations are as follows:

1. Increase the service capacity to ensure all services as mentioned are achieved.

2. Utilize port area to also support other relevant activities.

3. Increase productivity.

4. Employ modern technology to function docking field and yard operation.

5. Initiate new projects and activities to fulfill and cover all services requirements such as

Container Care Centre Project.

Pattaya Freight Forwarder Co.,Ltd

We pick up the goods; pack all the goods to keep them safe while in transport. We now

have our own packing and storage facilities in Bangkok and also and can load 20 & 40ft FCLs

in Bangkok. If upcountry we can have delivered by truck for you to our depot in Bangkok. We

provide all documents needed to clear customs from Thailand and into your port of destination

(packing lists, invoices, bill of laden, certificate of origin, fumigation reports,). We assist you in

22 http://logisticscorner.com/index.php?option=com_content&view=article&id=2049:freight-

forwarder&catid=39:import-export&Itemid=85

33

clearing into your destination port and give you advice on bringing the goods into your

warehouse and also freight clearance at your end if you need especially in the other country.

Well Established -Operating since 1998

Quality Assurance –DFT Dept foreign Trade Registered

Professionalism –Members of EAN Thai Federation of Industries

Logistics & Own Packing –Pickup & Delivery to your door

Competitive Rates –We pass on our bulk buying rates

Customer Service –Friendly, Experienced Staff

A-Z Freight Forwarder Co., Ltd

The company established an early strong web presence in 1996 with data-driven

information sites. These have been supplemented over time, always retaining a lead position;

the recent significant investment in upgraded sites and new internet developments will keep us

in front. With this reputation for market-led innovation, the company expanded into frequency

publishing in September 1998 with the launch of Air Cargo Week It is still the air cargo

industry’s only worldwide circulation weekly newspaper and was the first air cargo publication

in digital format. Since then the company has launched many new initiatives to meet market

needs. In 2010, we launched Air Logistics China, specifically designed for Chinese-speakers to

keep pace with the global air cargo industry as it relates to their businesses. The annual CTSS

Awards were launched in 2011, celebrating excellence and achievement in the Counter

Terrorism and Specialist Security industries.

The concept of A-Z provide business information around the world for the future air cargo

defend and security exhibition and conferences online publication.

34

Tiger Distribute & Logistic Co., Ltd

Systems a full range of services to businesses that require secure inventory. Speed of

delivery. Ready a mechanism for efficient the distribution. Provider around the country in an

important the distribution center to support the growth of import and export of the country.

Tiger Distribute & Logistic Co., Ltd. for the service department "International Freight" to

enlarges the service more goals to “ONE STOP SERVICES”.

Customer Analysis

Before opening the business, we have to specify the expect customer of our business at

the beginning can divide customer in 2 groups by:

1. Customer groups that use the international shipping service that is as usual:

That will the main target will be used to transport goods between countries is regularly

and continuously. Usually this is a group of customers that use companies’ services;

international shipping isn’t changing in original company their own transportation.

Because have to trust the traditional transportation.

2. Customer groups that just started to company opening using the international shipping

was the first time:

Is a customer group looking for international shipping companies that can rely about

efficient transportation, safety, quality of product that needs to ordered as etc. And will

are customers that important will able to make commercial transportation in the long

term.

35

Competitive Analysis

We are study about competitive the international freight business in Chonburi by using

four forces to analyze the possibilities of our business and other factor for competitive with

competitors.

1. Rivalry among Competitors

According to the behavior of competitor’s company, we find that in many international

shipping companies such as Laem Chabang Port Co.,Ltd23

and Pattaya Freight Forwarder

Co.,Ltd24

is the same type with us that quite competitive in terms of technology or the

efficiency of shipping is relatively high. And when various competitors make trade strategies to

achieve similar performance and operating standards, thus making so less different. Because

sometimes we find have commercial strategy adjust turn by coordinator or supporting company

for activities to reduce the cost of transportation.

2. Bargaining Power of Suppliers

This Bargain power of our company is going to Packaging Company Normally, power

makes a bargain for vendors that most of the bargain in terms of price as a customer. But the

difference in that the vendor will negotiate a higher price as the economy that drives forward.

So, this condition, we cannot avoid it unless is partner traded in the long term. Our Group

compares25

the price the quality of26

two companies before take the one that suitable for our

product.

23 Retrieved from

http://www.laemchabangport.com/index.php?option=com_content&view=article&id=85&Itemid=2&lang=en

24 Retrieved fromhttp://www.pattayashipping.com/index.php

25 http://www.24plast.com/product_228077_th

26 http://www.polyfoam.co.th/index.php/2008-11-07-07-56-51.html

http://www.laemchabangport.com/index.php?option=com_content&view=article&id=85&Itemid=2&lang=en

http://www.pattayashipping.com/index.php

http://www.24plast.com/product_228077_th

http://www.polyfoam.co.th/index.php/2008-11-07-07-56-51.html

36

3. Bargaining Power of Customers

Because of the company Max Freight Service Forwarder Company is an area that is

referred to as a center of transportation in all aspects. This is one reason that caused the

concentration of its kind forwarder which has up to five companies together27

. Consumers have

the power to bargain with our company. The impact of the consumer to have a choice to choose

the services of the company they satisfied, because customers have a choice to choose the

services of another company to substituted , and if the consumers to become our customers in

the future as a company or service users with the product are sending a large number. Customer

groups are considered as target groups, if the company does not have promotions or discounts

to motivate to the group and the customers who may cause us to lose customers in this group.

4. Threat of New Entrance

According to the kind of this business, the company has more competitors in industrial

area because the company’s has been growing of the business rather quickly that depend on the

competitors and customer quantity that occurred from the entry into ASEAN official in 2558

that Thailand has been an obvious in direction to support the context of change more

effectively, both in respect of the role of government and the private sector28

. So, that are the

barriers for new competitors although it supported from ASEAN but there may be a drawback

into this business and competition between new and old customers even more by the growth of

the economy.

27

Retrieved from

http://transportation.zibb.com/suppliers/freight+forwarders+or+forwarding+agents/th/Chonburi/25661529

28 http://logisticscorner.com/index.php?option=com_content&view=article&id=2576:2012-01-21-07-18-

18&catid=40:logistics&Itemid=87

http://transportation.zibb.com/suppliers/freight+forwarders+or+forwarding+agents/th/Chonburi/25661529

37

STP Analysis

Segmentation: there are 2 things that we concern the most first is consumer market in

this part our company focus on Geographic segmentation every product is depend on consumer

and the atmosphere of the place that consumer live. The main thing is the value of product and

services that consumer need we will find the best for them and also concern on their lifestyle

that the products and services that they need is suitable for their geographic or not. The second

one is Industrial market in this our company transport in domestic country 20% and for

international country 80%.

Target Market: our company focuses market on international country more than

domestic country; international country focuses on old industrial 80% and new industrial 20%

because the old industrial will be higher than the new industrial, comparison of growth of new

industrial in the group that have an under the current economic. So, we select this group. And

the survey of investment in 2011 will be seen that growth of developing which will be

benefited to our company29

.

29 http://www.ingfunds.co.th/TH/PDF%5C3.LF_guru.pdf

Old industrial 80%

New industrial20%

International Country

Old industrial

http://www.ingfunds.co.th/TH/PDF%5C3.LF_guru.pdf

38

Product Position: : Naturally, most of the customers expect to get a good service, impressive,

fast, safe and most importantly, the price must be not expensive. Our company is a new

company, our well set the product positioning that was at a moderate price, And focuses on

providing the service. That is our take your mind by working smart to provide the best and

most reliable service, making each shipment the most important thing we do. Provide to its

customers with integral solutions for maritime, air and land quality, efficiency and reliability,

with a high standard of service.

The Difference between Pattaya Freight, Tiger Shipping Freight and MAX freight

High price

Low Quality high

Low

: Max Freight

: Pattaya Shipping Freight

: Tiger Freight

39

Marketing Mix Strategy

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 a part of the organizations planning process

and consists of analyzing of 4Ps (product, price, place and promotion)

Product: The services are our product.

Freight forwarding by sea (Thru Container Service) Ex-Laem Chabang to/from

worldwide ports)

Air import/Export of cargo freight services.

Door to door services

All Customs Formalities arrangement

Packing and crating services

Exhibition cargo freight service

Storage services

Total services for project material/Heavy duty equipment

Insurance coverage

Hub of air lines & shipping lines service contract

Price: SME SHIPPING is a global courier company offering cheap freight forwarder services

across Thailand and internationally. Working with some of the world's largest couriers

including DHL EXPRESS, can deliver your parcel to 200 countries worldwide. Due to Max

Freight forwarder huge popularity and volume of orders handled, we are able to secure big-

name express delivery services at discounted rates30

. ]

30 http://www.smeshipping.com/index.php?option=com_content&view=article&id=13&Itemid=47

http://www.smeshipping.com/index.php?option=com_content&view=article&id=13&Itemid=47

40

Weight

(KG)

ZONE A ZONE B ZONE C ZONE D ZONE E ZONE F ZONE G ZONE I

20.5 - 29.5 159 270 270 337 368 491 634 251

30.0 - 49.5 145 243 252 312 341 405 517 221

50.0 - 69.5 116 214 234 281 312 350 443 199

70.0 - 99.5 97 187 200 251 269 307 387 173

100 - 299.5 86 175 188 240 253 287 356 162

300KG++ 81 165 179 230 243 277 341 153

Table: Price of Max Freight Service Forwarder Company

NON-DOCUMENT For shipment at weighing above 20.5kgs multiply your shipment by rate

per kg as is shown below.

The cost depends on weight and volume of the container by compare with the highest cost.

Method to determine volume of container height*length*width as unit in centre meter when

calculate the volume we bring that result to divided by 5000; it will give the weight in units of

Kilogram.

Don’t have service charge in case of forward the product out of DHL EXPRESS

(REMOTE AREA)

The cost involves VAT and Insurance

41

Price of competitor:

Weight

(KG)

ZONE A ZONE B ZONE C ZONE D ZONE E ZONE F ZONE G ZONE I

20.5 - 29.5 159 270 270 337 368 491 634 251

30.0 - 49.5 145 243 252 312 341 405 517 221

50.0 - 69.5 116 214 234 281 312 350 443 199

70.0 - 99.5 97 187 200 251 269 307 387 173

100 -

299.5 86 175 188 240 253 287 356 162

300KG++ 81 165 179 230 243 277 341 153

Table: Price of competitor

All shipment value insurance cover is not over 3000 THB. For addition insurance

minimum fees is 500 THB or 2.5% of Total Value of Shipment.

Non-Standard Shipment fees are 900 THB per shipment for any parcel over weight

70KG per box or over dimension 120CM per side31

.

Place: The Company’s located in Bowin sub district, Sriracha. It has a large area collecting

inventories, nearing the boulevard 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

31 http://www.smeshipping.com/index.php?option=com_content&view=article&id=42&Itemid=62

http://www.smeshipping.com/index.php?option=com_content&view=article&id=42&Itemid=62

42

Promotion: The Company will use the advertising on poster that place a billboard on the road

pavement the area various industrial fields, Web sites By placing a link to the webpage of the

various partners and competitors to cooperate, Application on smart phone and QR Code so

that customers can access our services more easily to promote our company, use member and

partner strategy to attract the customer, because will show the customer to see them product is

like company’s product, and they well get more benefit from membership or partner such as

discount, bonus, and etc.

43

Sales Forecast / Profit Estimation

According to the Thailand Freight Forum, normally the profit of Freight Forwarding Company

will reach between 600,000Bath to 10,000,000Bath per month32

. If the profit per month is less

than 500,000Bath, there will be not necessary and need to operate this forwarder company.

For the first year operation, we will focus on increasing market awareness of customer. There

will be a heavy cost on market promotion. The profit will produce after 6 month on the first

year. On the next 5 years, we project the sales will increase by 15% each year.

There are two major types of freight forwarder which refers to Thai Domestic33

and

International Route34

, we calculate the Total Average Price for each type:

Area Average Price

Thai Domestic 509Bath

International Route 6660Bath

Total Average Price 3584.5Bath

Table: Price of Thai Domestic and International Route

The share of Chonburi Population for whole Thailand is about 0.41 % Chonburi

population is around 250,000 and Thai total population is around 61.5 million35

.

According to Transport Statistics of Thailand 2009, we find the Average Transport

Statistic of Road, Sea and Air, and use them to calculate to receive the Average Transport

Statistics of Chonburi by comparing with its population share:

32 http://www.freightforum.com/23/Thailand/all/ 33http://smeshipping.com/index.php?option=com_content&view=article&id=25&Itemid=37

34http://www.bbsworldcargo.com/index.php/news-a-event/32-2011-03-27-05-48-31

35 http://www.hellosiam.com/html/thailand/thailand-population.htm

http://www.freightforum.com/23/Thailand/all/

http://smeshipping.com/index.php?option=com_content&view=article&id=25&Itemid=37

http://www.bbsworldcargo.com/index.php/news-a-event/32-2011-03-27-05-48-31

http://www.hellosiam.com/html/thailand/thailand-population.htm

44

Road Shipping Air

Thailand 423,677 2,931,100 216,563

Compare with share of Chonburi’s population

Chonburi 1,727.08 12,017.51 887.91

We estimate we may absorb 25% market share in best situation

MFS 431.77 3,004.38 221.98

Table: Average Transportation Statistic

(The international Air is 219,110 and Domestic Air is 214,016, so the Average Air = 219,110 +

214,016 / 2 = 216,563)36

Therefore we can roughly estimate the sale of freight forwarder industry: (Use 1 Million Bath

as unit to record)

Sale Trucking Shipping Air Total

Yearly 1.55 10.77 0.8 13.13

Monthly 0.13 0.9 0.07 1.1

To project the sales cost of company through different service, we have calculated and

research the specific quotes and effective transport cost of Thai Guru Freight Forwarder

Company37

, then we get that:

Sales

(100%)

Trucking

Service Sea Freight Air Freight

Sales Cost

% 50% 50% 30%

36 http://www.news.mot.go.th/motc/portal/graph/transtat09.pdf 37 http://www.gurutransport.com/freight/freight-quotes.html

http://www.news.mot.go.th/motc/portal/graph/transtat09.pdf

http://www.gurutransport.com/freight/freight-quotes.html

45

Sales Forecast of 1st year monthly (Use 1 Million Bath as unit to record)

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Trucking

Service

0.13 0.13 0.135 0.135 0.138 0.137 0.139 0.14 0.141 0.14 0.142 0.142

Sea

Freight

0.9 0.9 0.901 0.902 0.91 0.91 0.915 0.912 0.913 0.915 0.912 0.915

Air

Freight

0.07 0.07 0.075 0.076 0.08 0.082 0.082 0.08 0.082 0.085 0.085 0.082

Total

Sales

1.1 1.1 1.111 1.113 1.128 1.129 1.136 1.132 1.136 1.14 1.139 1.139

Direct

Sales

Cost

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Trucking

Service

0.065 0.065 0.068 0.068 0.069 0.069 0.070 0.070 0.071 0.070 0.071 0.071

Sea

Freight

0.450 0.450 0.451 0.451 0.455 0.455 0.458 0.456 0.457 0.458 0.456 0.458

Air

Freight

0.021 0.021 0.023 0.023 0.024 0.025 0.025 0.024 0.025 0.026 0.026 0.025

Total

Cost

0.536 0.536 0.541 0.541 0.548 0.548 0.552 0.550 0.552 0.553 0.553 0.553

Table: Sales Forecast of 1st year monthly

46

Sales Forecast of 2nd

year monthly (Use 1 Million Bath as unit to record)


Trucking

Service

0.150 0.150 0.155 0.155 0.159 0.158 0.160 0.161 0.162 0.161 0.163 0.163

Sea

Freight

1.035 1.035 1.036 1.037 1.047 1.047 1.052 1.049 1.050 1.052 1.049 1.052

Air

Freight

0.081 0.081 0.086 0.087 0.092 0.094 0.094 0.092 0.094 0.098 0.098 0.094

Total Sales 1.265 1.265 1.278 1.280 1.297 1.298 1.306 1.302 1.306 1.311 1.310 1.310

Direct

Sales Cost


Trucking

Service

0.075 0.075 0.078 0.078 0.079 0.079 0.080 0.081 0.081 0.081 0.082 0.082

Sea

Freight

0.518 0.518 0.518 0.519 0.523 0.523 0.526 0.524 0.525 0.526 0.524 0.526

Air

Freight

0.024 0.024 0.026 0.026 0.028 0.028 0.028 0.028 0.028 0.029 0.029 0.028

Total Cost 0.616 0.616 0.622 0.622 0.630 0.630 0.634 0.633 0.634 0.636 0.635 0.636

Table: Sales Forecast of 2nd

year monthly

47

Sales Forecast of 3rd



Trucking

Service

0.173 0.173 0.178 0.178 0.183 0.182 0.184 0.185 0.186 0.185 0.187 0.187

Sea

Freight

1.190 1.190 1.191 1.193 1.204 1.204 1.210 1.206 1.208 1.210 1.206 1.210

Air

Freight

0.093 0.093 0.099 0.100 0.106 0.108 0.108 0.106 0.108 0.113 0.113 0.108

Total Sales 1.455 1.455 1.470 1.472 1.492 1.493 1.502 1.497 1.502 1.508 1.507 1.507

Direct

Sales Cost


Trucking

Service

0.086 0.086 0.090 0.090 0.091 0.091 0.092 0.093 0.093 0.093 0.094 0.094

Sea

Freight

0.596 0.596 0.596 0.597 0.601 0.601 0.605 0.603 0.604 0.605 0.603 0.605

Air

Freight

0.028 0.028 0.030 0.030 0.032 0.032 0.032 0.032 0.032 0.033 0.033 0.032

Total Cost 0.708 0.708 0.715 0.715 0.725 0.725 0.729 0.728 0.729 0.731 0.730 0.731

Table: Sales Forecast of 3rd

year monthly

48

Sales Forecast of 4th



Trucking

Service

0.199 0.199 0.205 0.205 0.210 0.209 0.212 0.213 0.214 0.213 0.215 0.215

Sea

Freight

1.369 1.369 1.370 1.372 1.385 1.385 1.392 1.387 1.389 1.392 1.387 1.392

Air

Freight

0.107 0.107 0.114 0.115 0.122 0.124 0.124 0.122 0.124 0.130 0.130 0.124

Total Sales 1.673 1.673 1.691 1.693 1.716 1.717 1.727 1.722 1.727 1.734 1.733 1.733

Direct

Sales Cost


Trucking

Service

0.099 0.099 0.104 0.104 0.105 0.105 0.106 0.107 0.107 0.107 0.108 0.108

Sea

Freight

0.685 0.685 0.685 0.687 0.691 0.691 0.696 0.693 0.695 0.696 0.693 0.696

Air

Freight

0.032 0.032 0.035 0.035 0.037 0.037 0.037 0.037 0.037 0.038 0.038 0.037

Total Cost 0.814 0.814 0.822 0.822 0.834 0.834 0.838 0.837 0.838 0.841 0.840 0.841

Table: Sales Forecast of 4th

year monthly

49

Sales Forecast of 5th



Trucking

Service

0.229 0.229 0.236 0.236 0.242 0.240 0.244 0.245 0.246 0.245 0.247 0.247

Sea

Freight

1.574 1.574 1.576 1.578 1.593 1.593 1.601 1.595 1.597 1.601 1.595 1.601

Air

Freight

0.123 0.123 0.131 0.132 0.140 0.143 0.143 0.140 0.143 0.150 0.150 0.143

Total Sales 1.924 1.924 1.945 1.947 1.973 1.975 1.986 1.980 1.986 1.994 1.993 1.993

Direct

Sales Cost


Trucking

Service

0.114 0.114 0.120 0.120 0.121 0.121 0.122 0.123 0.123 0.123 0.124 0.124

Sea

Freight

0.788 0.788 0.788 0.790 0.795 0.795 0.800 0.797 0.799 0.800 0.797 0.800

Air

Freight

0.037 0.037 0.040 0.040 0.043 0.043 0.043 0.043 0.043 0.044 0.044 0.043

Total Cost 0.936 0.936 0.945 0.945 0.959 0.959 0.964 0.963 0.964 0.967 0.966 0.967

Table: Sales Forecast of 5th

year monthly

50

Sales Forecast for 5 years (Use 1 Million Bath as unit to record)

Year 1 2 3 4 5

Pro-

Sale

s

13.50

3

15.52

8

17.85

8

20.53

6

23.61

7

Table: Sales Forecast for 5 years

Sales are projected to increase 15% per year

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

1 2 3 4 5

Year

Profit

51

Profit Estimation of 1st year monthly (Use 1 Million Bath as unit to record)


Total

Sales

1.1 1.1 1.111 1.113 1.128 1.129 1.136 1.132 1.136 1.14 1.139 1.139

Total

Cost

0.536 0.536 0.541 0.541 0.548 0.548 0.552 0.55 0.552 0.553 0.553 0.553

Profit 0.564 0.564 0.57 0.572 0.58 0.581 0.584 0.582 0.584 0.587 0.586 0.586

Total

Profit

6.94

Table: Profit Estimation of 1st year monthly

Profit Estimation of 2nd



Total

Sales

1.265 1.265 1.278 1.280 1.297 1.298 1.306 1.302 1.306 1.311 1.310 1.310

Total

Cost

0.616 0.616 0.622 0.622 0.630 0.630 0.635 0.633 0.635 0.636 0.636 0.636

Profit 0.649 0.649 0.656 0.658 0.667 0.668 0.672 0.669 0.672 0.675 0.674 0.674

Total

Profit

7.981

Table: Profit Estimation of 2nd

year monthly

52

Profit Estimation of 3rd



Total

Sales

1.455 1.455 1.470 1.472 1.492 1.493 1.502 1.497 1.502 1.508 1.507 1.507

Total

Cost

0.708 0.708 0.715 0.715 0.725 0.725 0.730 0.728 0.730 0.731 0.731 0.731

Profit 0.746 0.746 0.754 0.757 0.767 0.768 0.773 0.769 0.773 0.776 0.775 0.775

Total

Profit

9.18

Table: Profit Estimation of 3rd

year monthly

Profit Estimation of 4th



Total

Sales

1.673 1.673 1.691 1.693 1.716 1.717 1.727 1.722 1.727 1.734 1.733 1.733

Total

Cost

0.814 0.814 0.822 0.822 0.834 0.834 0.840 0.837 0.840 0.841 0.841 0.841

Profit 0.858 0.858 0.867 0.871 0.882 0.883 0.889 0.884 0.889 0.892 0.891 0.891

Total

Profit

10.556

Table: Profit Estimation of 4th

year monthly

53

Profit Estimation of 5th



Total

Sales

1.924 1.924 1.945 1.947 1.973 1.975 1.986 1.980 1.986 1.994 1.993 1.993

Total

Cost

0.936 0.936 0.945 0.945 0.959 0.959 0.966 0.963 0.966 0.967 0.967 0.967

Profit 0.987 0.987 0.997 1.002 1.014 1.015 1.022 1.017 1.022 1.026 1.025 1.025

Total

Profit

12.138

Table: Profit Estimation of 5th

year monthly

Profit Estimate for 5 years (Use 1 Million Bath as unit to record)

Year 1 2 3 4 5

Profit 6.94 7.981 9.18 10.556 12.138

Table: Profit Estimate for 5 years

Profit Estimate for 5 Years

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

1 2 3 4 5

Year

Profit

54

Explanations:

We will be the new company in freight industry, by the conditions of Thai freights’

profit; we forecast that we will acquire at least 13,503,000 Bath on the sales of company, and

around 6,940,000Bath profit will be produced through different freight services on the

beginning year. For the three main kinds of service, sea freight comes to be the most service

which consumers will chose, because Thailand owns a lot of ports and sea freight’s cost is less

than other two services. Air freight will be least service which customer chooses, because it

produces the highest cost than others. Sales cost will also share a large part in the process

operations. The most costs will be paid for general transport cost and other costs.

Under today’s developing of import and export situation in Thailand, sales of our

forwarder company will be conservative estimated to increase 15% every year. The profit of

company will rise in the beginning, keep trend during follow year and decrease a little since

from 5 years period.

Marketing Expenses (Sales Incentive)

Max Freight Service (MFS) Company has expenses as follow;

PR Program/Advertisement: Max Freight Service (MFS) Company is advertised on

its own website, rent some area on other website that concern with the customer products; the

advertising expense depends on area’s size that the company must pay per month. Moreover

the company will provide professional services to trade and public communication related

projects such as event promotion, business promotion, and corporate promotion. The company

acts as an official public relations agency for some of the international trade fairs.

Radio: spots to presents-advertising for organization, company and business to

audience get to know and communicate with you as quickly, accrete with the service produce

the radio spots. A comprehensive program around Chonburi province with the staff have

unique style and quality stand to listen to every tune, narration, beat, crisp and clear. It

produces by equipment, technology it have a high quality38

.

38 http://www.chonburichannel.com/Price-Production.html

55

The details are as follows.

1. Brief information needs objective, present product and service from customer.

2. Planning a presentation format.

3. Write a script narration.

4. Records sound, beat and other sound effects.

5. Present to costumer.

3000 bath/month

Brochure

3.25 bath/ sheets = 3.25 baht/month39

200 sheets/3.25 bath = 650 bath

Website

1,900 baht/month40

Marketing Research Expenses: Service marketing pays much attention to innovation

and differentiation. The company will do marketing survey by questionnaires that tells about

identify the customers, identify their needs, and combine the firm's resources to meet those

needs.

Internet Service: The customers can use company’s website to checking their product

status. Moreover the company has “door-to-door promotion service package” for customer who

want it. They must input their detail into textbox on website that they need such as type of

product sent, what’s country, the choice of transportation carriers affects the pricing of

products, delivery performance, and condition of the goods when they arrive, etc.

39 http://www.brochure-easy.com/

40 http://www.89workdesign.com/

56

Transport Service: the expenses are different depend on the categories of

transportation that the customer choose such as air - planes and choppers, water - ships and

submarines, and land - cars and trucks.

Marketing Expenses of Year 2011-2015;

MAX Freight Service Forwarder Company use 2% of sale forecast for advertising

expenses in year 1 and year 2 because in first period, customers unknown about services our

company so, we should be use a lot of money for advertising. And year 2 and year 3 we use

1.5% because customers know about our service better than year 1 and year 2. And in year 5

the customers recognize our company in their mind.

Marketing expenses Year 2011

Expense/Month JAN FEB MAR APR MAY JUNE JUL AUG SEP OCT NOV DEC TOTAL

Radio Adv. 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 144,000

Brochure 650 650 650 650 650 650 650 650 650 650 650 650 7,800

Website 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 22,800

Total 14,550 14,550 14,550 14,550 14,550 14,550 14,550 14,550 14,550 14,550 14,550 14,550 174,600

Table: Marketing Expense of Year 2011



Radio Adv. 12,240 12,240 12,240 12,240 12,240 12,240 12,240 12,240 12,240 12,240 12,240 12,240 146,880

Brochure 663 663 663 663 663 663 663 663 663 663 663 663 7,956

Website 1,938 1,938 1,938 1,938 1,938 1,938 1,938 1,938 1,938 1,938 1,938 1,938 23,256

Total 14,841 14,841 14,841 14,841 14,841 14,841 14,841 14,841 14,841 14,841 14,841 14,841 178,092


57



Radio Adv. 12,424 12,424 12,424 0 12,424 12,424 12,424 0 12,424 12,424 12,424 12,424 124,240

Brochure 672.94 672.94 672.94 0 672.94 672.94 672.94 0 672.94 672.94 672.94 672.94 6,729

Website 1,967 1,967 1,967 0 1,967 1,967 1,967 0 1,967 1,967 1,967 1,967 19,670

Total 15,064 15,064 15,064 0 15,064 15,064 15,064 0 15,064 15,064 15,064 15,064 150,639




Radio Adv. 0 12,610 12,610 12,610 0 12,610 12,610 12,610 0 12,610 12,610 12,610 113,490

Brochure 0 683.03 683.03 683.03 0 683.03 683.03 683.03 0 683.03 683.03 683.03 6,147

Website 0 1,997 1,997 1,997 0 1,997 1,997 1,997 0 1,997 1,997 1,997 17,973

Total 0 15,290 15,290 15,290 0 15,290 15,290 15,290 0 15,290 15,290 15,290 137,610



Expense/Month JAN FEB MAR APR MAY JUNE JUL AUG SEP OCT NOV DEM TOTAL

Radio Adv. 0 12,799 12,799 12,799 12,799 0 12,799 12,799 12,799 12,799 0 12,799 115,191

Brochure 0 693.3 693.3 693.3 693.3 0 693.3 693.3 693.3 693.3 0 693.3 6,240

Website 0 2,027 2,027 2,027 2,027 0 2,027 2,027 2,027 2,027 0 2,027 18,243

Total 0 15,519 15,519 15,519 15,519 0 15,519 15,519 15,519 15,519 0 15,519 139,674


58

Conclusion

Max Freight Service (MFS) is a company that provides trade, industrial contents and

related freight broker service of manufacturing and logistics industries in Thailand. We are the

agent which provides import and export products and service to customers. Our company is

like a forwarder company which plays the role of middle person that doesn’t send the product

and service to customer and company by itself. Our services are all depended on customers’

needs and their satisfaction. The company can separate the customer in 2 groups.Company

focuses on industrial and the new industrial that just come and open an export import business.

In Thailand doesn’t have a lot company of forwarder but they have high competition between

the forwarder companies. But our company has a clear positioning that provides the best and

most reliable service, making each shipment the most important thing we do. Provide to its

customers with integral solutions for maritime, air and land quality, efficiency and reliability,

with a high standard of service and also focus on the price of products and services but the

price are depend on the load of product for a one time that we export or import and also depend

on the quality of products and services. The company uses the strategies that different from

competitor such as Warranty all destinations transportation without additional charge. Our

company has a strategies for promote to customer by use the advertising on poster, web site and

TV. 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 profits from Customers are Export Company.

Not only strategies of warranty all destinations transportation but also the company is located in

the good area for business. The Company’s located in Bowin sub district, Sriracha. It has a large

area collecting inventories, nearing the boulevard 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. To support with company’s vision and mission, the company

will use the high technology to response the customer needs and easy for management.

59

Chapter 4

Technical Feasibility Study

Service Characteristic

Our company is a forwarder company it’s a company that provide service to consumer.

We takes a shorter time of sending the goods, it’s depend on country and conveyance that we

use for transport. Our company has a highly organized and has an expert in documentation. It is

very important for a forwarder to service their clients accurately and without any mistake or

error in documentation. Our company trend workers to practices good packing service.

Shipping conditions whether by air or sea can at times be tough. Perfect packing is needed to

ensure safety of goods. Our company has to be specific in its packing particularly on the

different kinds of products and goods as some products can be very fragile. We also have an

accurate and effective tracking system. When a person sends goods, he normally would like to

know the progress of the shipment. He would like to know right away whether the goods have

already reached the destination. It should follow a smooth network where the customers can

easily track where their goods are at a specific period of time. This way, the customers feel

relaxed that the goods will in fact reach the destination. As many companies would like to

ensure the safety of the goods being shipped, they charge the customers a very expensive

amount for shipping especially if the goods being shipped are fragile or one that requires a very

sensitive care but our company doesn’t charge consumer through the shipping we just do the

best for consumer satisfaction. Our company follows some price regulations which correspond

to the weight, type and with the amount the item was bought and this can be costly at times.

This is all the services that we provide for our consumers.

60

Specification, Feathers, Dimension, Life Time

Package Type of Package Weight

of

product /

variety

Size

{L*W*H}[mm]

Thickness

[mm.]

1. Wooden

Case41

50-35

100-400

Max 500

700

1500*1000*750

2000*1000*1000

2000*1000*1000

2500*1200*1200

18 – 23

18 – 23

18 – 28

21 – 32

41 http://www.pack1900.com/index.php?lay=show&ac=atricle&ld=538811970&NEype=777

61

800

450

2500*1200*1200

2000*1000*1000

21 – 32

18 – 23

2. Foam

Case42

PF-BB

PF-JN

PF-l1

180x240x180

(mm.)

458 x 606 x 320

(mm.)

352 x 478 x 355

(mm.)

42 http://www.24plast.com/product228077th

62

PF-15

PF-NPS

470x395x355

(mm.)

30 KG

3.Corrugated

Boxes43

3 layers

3 layers

5 layers

18*35*25

23*31*26.7

30*30*30

43 http://www.scpaperpack.co.th/?gclid=CKswr4P59qwCFUZ66wodwiCpSg

63

3 layers

5 layers

40*40*40

39.8*47*36.5

Table: Specification, Feathers, Dimension, Life Time

64

Production/Services Process

1. Procurement & Purchasing

Purchasing processing is the first step and the main step that linked to the customers

directly. So, the company has to provide the best service to them as follow:

- Customer Registration

The first thing that we will kept the information of customers to gather in right

information and serve the right service to customer because of the prevention from the goods

stolen.

- Employee will separate type of products.

We have the specific employ for each type of product. The good skill of separating type of

Products are very important because if they separate wrong, the company may lose income.

- Compute the weight and price.

The price is depending on the weight of products and the distance of the country that

have to deliver. The company will get the royalty and reliable from customer because the

company serves them with the fairness service and fairness price.

2. Packing Separation

The company separates the type of packaging, and then put into each zone. There are

three main zones as follow: Wooden Case, Foam Case and Corrugated Boxes.

Zone 1 – Wooden Case

Zone 2 – Foam Case

Zone 3 – Corrugated Boxe

65

Location

We will consider transportation an access and raw materials as the basis for deciding the

location. It target customers in around world and nearby is a major key. And the source

material is a source of product, which many in Thailand and neighboring provinces in sufficient

quantities to provide transport our as well as convenient transportation routes by network

transport for forwarder. The factory showed that land district, the city's outskirts. The address is

M.6, Bowin, Sriracha, and Chonburi 57100. With an area of 5 plantations is suitable for Max

Freight Service (MFS) Company. It does not effect for villager and this land is owned by Mr.

Surachi (The owner of land). The importance place which near our factory near Amata City

Hospital, Bangkok Bank, Boowin Industrial, Eastern Industrial and Laem Chabang Golf etc. By

a factor of importance is:

- Transportation convenient

- Near sources of raw materials

- Close proximity to trading port

- Near sources of an industrial settlement

66

Highway 36 (Chonburi – bypass)

Highway 331 (Sattaheep - Chachoengsao)

Boowin Road N

W E

Boowin

Industrial

Eastern

Industri

al

Amata

Hospital

Bangkok

Bank Laem Chabang

Golf

MFS

Company

67

Facility Layout

Max Freight Service (MFS) Company looks a rectangular, one-story, rooftop shapely,

ventilation was good, and designed by industry standards. Facilities include fully Plant

structure is divided into four parts. Receptionist zone, Cloth zone, wood zone and Refrigerated

room is to clean and hygienic and the area around Max Freight Service (MFS) Company factor

that have trees for well peacefulness.

20

15

17.70

20

15.10

30

***Unit: meters

3. Cloth Zone

2. Wood Zone

1. Receptionist

zone

4. Refrigerated room

Zone

68

1. Receptionist zone: In the ground floor will be welcomed by the employees and customer

relations department. We also have a resting point for customers in location nearby of a

book or magazine to read while waiting for customer service.

Figure: Receptionist zone, 1floor

69

: In the second floor, Consists of an administrator’s rooms, meeting rooms, employee’s rooms

etc. so, has managed living space as a category for tidiness and convenience of operation.

Figure: Receptionist zone, 2floor

70

2. Wood Zone: This zone is a zone that wood products store because the product cannot be

stored with other products. May adversely affect the product is thin, clean, light etc. for

reflect on the speed of the carriage and check product next.

3. Cloth Zone: This zone is a zone that kept the fabric or garment products to be delivered

to the customer. For take care of the most secure products and to cause a quick and easy

to transport.

20

30

Figure: Wood Zone and Cloth Zone

Door

3. Cloth Zone

2. Wood Zone

71

4. Refrigerated room Zone: This zone is the zone capture the consumer products that

require cold storage, or less nutritious food, easy to perishable foods therefore in this

zone are confined to separate clearly for transport and to check stock.

15

20

Figure: Refrigerated room Zone

Door

Logistics management

Logistics management for companies is transportation management, both within and

outside the company to provide a fast and accurate. Management, logistics is a part of supply

chain management, planning, implementation and control flow, efficient, effective forward and

backward, and storage of goods, services and related information between the source and the

point of consumption to respond and needs of our customers. Our company is a forwarder,

which does not have our own boat. So, the external transportation management we need to

engage in direct logistics for transportation. This process which control companies that we hire.

We are responsible to the customer once the port, which is a part that will use to be exported.

Refrigerated room Zone

72

Logistic activities

- Customer Service

Our company has a delivery service to customers. We focus on customer care and

fairness in the service and speed of delivery to customer loyalty. The company has made in "the

best service with fairness in pricing and speed of delivery, " which able to satisfy and impress

clients to customer. This is the most important thing that will persuade them, and can also

affect other steps in the logistics.

- Location Planning

The Company’s located in Bowin sub district, Sriracha. It has a large area collecting

inventories, nearing the boulevard 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

- Transport & Traffic

Outbound logistics: The Company hires a transportation company for transport goods from

the warehouse to the port.

Inbound logistics: We have managed to transport from factories to warehouses of the

company.

- Warehousing & Inventory Control

Our company has two warehouses.

- First warehouse used to store items that need refrigeration, like a fruits and meat.

- The second warehouse used to store items that need to control humidity and

temperature. Divided into two zones.

First zone that is used for storage of cotton goods.

Second zone is used to store wood products.

73

- Material Handling and Transportation

Forklift Hand Lift Industries Ladder

Machine control humidity and temperature Cart

Retrieved from http://www.thailandbesthandtruck.com/contents/specialbuilt_pallettruck.php#3and

http://www.dlforklift.com/index.php

http://www.thailandbesthandtruck.com/contents/specialbuilt_pallettruck.php#3

http://www.thailandbesthandtruck.com/contents/specialbuilt_pallettruck.php#3

http://www.dlforklift.com/index.php

74

Office: restroom

no item picture unit Price per

unit Total(THB)

1 Flush toilet

NASCO n-7530 madona

5 1,600 8,000

2 Toilet Hose

American standard

5 170 850

3 Navel basin

American standard

2 700 1400

4 Faucet

American standard

2 350 700

5 Chamber pot

COTTO

4 900 3600

6 Mirror

Plastic ABS 500*450 mm.

2 100 200

75

Retrieved from http://www.ppdynamic.com/?lang=th and

http://www.skselectric.com/?gclid=CLTi8suI9a0CFYkc6wod1mnMsg

7 Bin

9 liter

2 130 260

8 Ventilators

TOSHIBA VF-20P 8”

2 850 1,700

9 Light Blue

MEGAMAN

8 150 1,200

10 Toilet tissue box

Stainless

5 100 500

11 Foot scraper

Cotton 80X50 cm

2 500 1,000

total 19,410

http://www.ppdynamic.com/?lang=th

76

Office: Meeting room


unit Total(THB)

1 conference table

12 sit

1 set 15,000 15,000

2 Projector

BenQ Projector

DLP-MS500

1 11,600 11,6,00

3 Projector Screen

PS-120V 244x183

cm.

1 5,000 5,000

4 Light

MEGAMAN

4 150 600

5 Air condition

MITSUBISHI

MSZ-SGE09VA

1 23,900 23,900

6 Computer

Acer Aspire G5910-

254G1T00MGi

1 17,000 17,000

total 40,900

77

Office: Living Room


unit Total(THB)

1 Sofa

OPIA set

1 8,800 8,800

2 CCTV.

KPC252

1 1,600 1,600

3 Air Condition

MITSUBISHI

MSZ-SGE09VA

1 23,900 23,900

4 Television

Samsung LCD

TV

32”

1 12,000 12,000

total 35,500

78

Office: Kitchen room


unit Total(THB)

1 Electric kettle.

MISUSITA KP-25S

2.5

1 590 590

2 Refrigerator

SHARP SJ-N15S

,5.2

1 5,400 5,400

3 Microwave

ELECTROLUX

1 4,500 4,500

4 Sink clean

Diamond DMB 100A

1 1,000 1,000

5 Ventilators

TOSHIBA VF-20P

8”

1 850 850

6 Light

MEGAMAN

2 150 300

7 Faucet

American standard

1 350 350

total 12,990

79

Office: Working room


unit Total(THB)

1 Table

120x60x75 cm

10 2,500 25,000

2 Chair

54(W) x 48(D) x 90(H)

cm.

10 900 9,000

3 Computer PC

Acer Aspire M3970-

212G1T00Mi/9003

10 17,000 170,000

4 Wireless transmitter

3Com OfficeConnect

ADSL

2 2,700 5,400

5 Telephone

Panasonic KX-

T2371MX

10 900 9,000

80

6 Fax phone

PANASONIC KX-

FL422CX

2 7,800 15,600

7 Copy machine

KONICA BIZHUB 21

1 COPY+USB PRINT

+USB SCAN MONO

+AUTOFEED+DUPL

EX+SORT

1 3,500 3,500

8 Partition

150*100

27 2,000 54,000

9 Cutting electricity

HI-LIGHT

63 A 220 V

1 8,500 8,500

10 Fire Extinguisher

10 pound

1 650 650

81

11 Drawer

5 ชั้น

10 540 5,400

12 Glue

UHU/ STIC

1 pack 300 300

13 Cutter

OKA cutter

10 30 300

14 Scissors

Elephant 8”

10 50 500

15 File

Elephant Econ File

50 File 60 3,000

16 Pen

5 pack 250 1,250

82

17 Clip

Elephant / Binder

Clips

5 pack 45 225

18 Pencil

Maped / black peps

5 pack 40 200

19 Sharpener

carn A-5

7.3x11.5x11.9 cm.

3 450 1,350

20 Plastic tape

POLYSEAL / OPP

Tape 48 mm 6 unit

5 pack 130 650

21 Staple

E'SY / E-40

5 pack 50 250

22 Cooler water Maxcool

STH

1 7,900 7,900

83

23 Calculator

SHARP EL-144A

10 350 3,500

24 Stapler

10 65 650

25 Rubber stamp

10 25 250

26 Paper

Double A A4 80G

5 box 500 2,500

27 Paper note

5 pack 25 152

84

28 Light

MEGAMAN

16 150 2,400

29 Filing cabinet

92.0(W)x31.1(D)x96.2

(H) cm.

10 2,800 28,000

30 Air condition

MITSUBISHI

MSZ-SGE09VA

2 23,900 47,800

31 CCTV.

KPC252

2 1600 3,200

total 410,427

85

Office: Manager Room


unit Total(THB)

1 Table

1set 8,300 8,300

2 Filing cabinet

121.8(W) x 40.6(D) x

87.8(H) cm.

1 4,000 4,000

3 Filing cabinet

91.3 (W) x 45.8 (D) x

183 (H) cm.

1 5,000 5,000

4 Chair

PE-621H

1 2,600 2,600

86

5 Filing cabinet

91.4(W) x 40.6(D) x

183(H) cm.

1 7,500 7,500

6 Telephone

Panasonic KX-

T2371MX

1 900 900

7 computer

Acer Aspire G5910-

254G1T00MGi

1 17,000 17,000

8 television

Samsung LCD TV

32”

1 12,000 12,000

9 Air condition

MITSUBISHI

MSZ-SGE09VA

1 23,900 23,900

87

10 CCTV.

KPC252

1 1,600 1,600

11 Lamp

BEC KT028A/Black

1 850 850

12 Light

MEGAMAN

4 150 600

13 Bin

9 liter

1 130 130

14 Wireless transmitter

3Com Office

Connect ADSL

1 2,700 2,700

15 Paper note

1pack 25 25

88

Retrieved from http://www.officedepot.co.th/ and http://www.sinthaneegroup.com/products-topmenu-

45?page=shop.browse&category_id=21

16 Rubber stamp

1 25 25

total 87,130

http://www.officedepot.co.th/

http://www.sinthaneegroup.com/products-topmenu-45?page=shop.browse&category_id=21

http://www.sinthaneegroup.com/products-topmenu-45?page=shop.browse&category_id=21

89

Warehouse


unit Total(THB)

1 Cutting electricity

HI-LIGHT

63 A 220 V

3 8,500 25,500

2 fingerprint scanner

CMi S20

2 16,000 32,000

3 Fire Hose

Set

2 8,200 16,400

4 RFID label Tags

20 10,000 200,000

5 CCTV.

KPC252

6 1,600 9,600

90

6 Folk lift

JRP

2 600,000 1,200,000

7 Industries Ladder

LD-SK05

4 1,800 7,200

8 Hand Lift

HECKER PT25S

680 mm 2.5 t.

5 11,000 55,000

9 Machine control

Micro Fog machine

2 12,000 24,000

10 Air condition

MITSUBISHI

MSZ-SGE09VA

1 23,900 23,900

11 Telephone

Panasonic KX-

T2371MX

2 890 1,780

91

12 Bin

240 liter

6 1,900 11,400

total 1,606,780

Retrieved from http://www.fasterinter.com/ , http://www.waka.co.th/?gclid=COngooqM9a0CFQN66wodqRPztQ and

http://www.barcoderetail.co.th/home/index.php

http://www.fasterinter.com/

http://www.waka.co.th/?gclid=COngooqM9a0CFQN66wodqRPztQ

http://www.barcoderetail.co.th/home/index.php

92

Cost of Investment

Company Limited Registration

The company’s name is: Max Freight Service (MFS) Company

M.6, Bowin, Sriracha, Chonburi 57100

Company promoters are responsible for registering the company with the Ministry of

Commerce and required at least 3 persons signing together. The promoters must be

individuals(not juristic persons) who are 20 years of age or older, and they must be available to

sign documentation during the registration process which for Max Freight Service (MFS)

Company, the promoter are included eight partners as followed:

Mr. pipat thawonwijit

Mr. Yue Zhao

Ms. Kritika Sachaphibulkij

Ms. Kanpicha Channgam

Ms. Jutarat Setar

Ms. Chompoonoot Khuankaew

Ms. Sasithorn Saengmanee

Ms. Rachakorn Sonthiphumath

Total capital investment

5,000,000 baht or 2,000,000 baht per each

93

The memorandum registration fee for company limited’s establishment fee is 500 baht

per 100,000 baht of registered capital. The minimum fee is 500 baht and the maximum fee is

25,000. For Max Freight Service (MFS) Company, total fee for memorandum and company

limited registration is 35,000 baht.

Company Limited Memorandum of Association Registration

For entering a company in the Commercial Register, the founders must draft a

Memorandum of Association, and also approve the Articles of Association of the private

limited company as an annex to the Memorandum of Association. The Memorandum of

Association and the Articles of Association approved thereby, must be notarized and signed by

all founders. A representative of a founder may sign the Memorandum of Association and the

Articles of Association approved thereby, if the authorization document granted to the

representative is notarized. If the private limited company has one founder, the Memorandum

of Association must be substituted by a notarized foundation resolution, signed by the founder.

The Memorandum of Association must include the following information:

the business name, seat and address of the private limited company being founded;

the names and residences or seats of the founders;

the proposed amount of share capital; the nominal value and number of shares, and their

division among the founders;

the amount to be paid for shares and the procedure, time and place of payment;

the item of the non-monetary contribution and its valuation method, if a share is paid for

by a non-monetary contribution;

information on the members of the management board and, if formed, the supervisory

board;

Information on procurators or auditors, if appointed; the projected costs of foundation

and the procedure for payment thereof.

94

Cost of require electricity industries

Contact for electricity: Any person wishing to apply can be obtained from the electrical power

at the head office in Bangkok or the Office of Electricity Authority in the area of business is

located, based on the demand for electricity to be used as follows.

1. Regional offices include the Office of electrical fields, Office of the Provincial Electric and

Power District Office. Who wish to use electrical power can be obtained from any system, Size

and voltage levels at all of these offices especially in areas where the business office is located.

2. Electricity demand exceeding 500 kVA. Or demand for electricity in the voltage 69,000

or115,000 volts recommended to contact the Head Office No. 200, Ngam Wong Wan Road

Chatuchak, Bangkok 10900

Electricity Tariffs - Large General Service

Time of Day Rate : TOD Demand Charge

(Baht/kW.)

Energy Charge

(Baht/kWh.)

Peak Partial Off Peak

At Voltage of 69 kV. and

above

224.30 29.91 0 1.6660

At Voltage of 22-33 kV. 285.05 58.88 0 1.7034

At Voltage of less than 22 kV. 332.71 68.22 0 1.7314

Peak : 06.30PM - 09.30PM

everyday

Partial : 08.00AM - 06.30PM only the excess demand over Peak Recorded On

Peak period

Off Peak : 09.30PM - 08.00AM everyday

95

Time of Use Rate : TOU Demand

Charge

(Baht/kW.)

Energy

Charge

(Baht/kWh.)

Service

Charge

(Baht/Month)

Peak Off

Peak

At Voltage of 69 kV. and

above

74.14 2.6136 1.1726 228.17

At Voltage of 22-33 kV. 132.93 2.6950 1.1914 228.17

At Voltage of less than 22 kV. 210.00 2.8408 1.2246 228.17

Peak : Monday - Friday 09.00AM - 10.00PM

Off-Peak : Monday - Friday 10.00PM - 09.00AM

Saturday - Sunday and Official Holiday (all day),

Excluding Substitution Holiday

Note: If maximum demand in any month is less than 1,000 kW. Or average consumption in the

last 3 consecutive months does not exceed 250,000 kWh per month, this rate will apply. If such

demand has dropped below 30 kW. for 12 consecutive months and the next month's demand is

still below 30 kW., the rate will automatically change to schedule 2.1 or 6.1 depending on the

case.

Cost of installation electricity meter: The meter factory is 50 (100 Amp), the phase 3phase,

power is equal to 4, 500 THB, check the (internal) 1,200 THB, the average value of 16,500

THB and insurance 15,000 THB. Therefore, total cost of electricity for is 37,200 THB

Retrieved from http://www.pea.co.th/services/services_fee_rates.htm

Minimum Charge: 70% of the maximum demand charge during the last 12 month period

ending with the current month.

http://www.pea.co.th/services/services_fee_rates.htm

96

Investment Cost

Investment is the dedication of resource or assets to creating financial benefits in form

of income or profit in the future.

- Land:

Land Quantity Price per Piece Total (Baht)

Land 5 Rai 65,000 325,000

Total 325,000

Figure: Land of Investment Cost

- Building decoration:

Exterior and Interior Paint: Super Shield Titanium44

.

Is a self-cleaning feature, up to a high state of Titanium Triple

Protection, lifetime is 15-year. Prevent mold and algae price

3,000 baht/ 5 GL factories all the amount of 10 tanks to be

equal to 30,000 Baht and wages of color per square meter 15

baht. The factory area to paint about 1,136 square meters

wages paint money 17,040 baht, so the color and wages

painted as money 47,040 baht.

44 http://sangpech.com/shop_cart_toa-ar.html

97

Granite Tiles45

: Max Freight Service (MFS)

Company selected Kenzai Granite Tile, 8*8

nature color grade AAA, Code: GF-202-01, 21

tiles/ 1 square meter (16 tiles/box, 0.76 square/

box). Price 496.80 Baht so, 1 meter/21 tiles

therefore in 535 meter/ 11,235 tiles or 703 box

as money 349,251 Baht.

Roofing, Cover roofs roll angle, Ceiling etc.

45 http://www.treetouch.com/index.php?lay=show&ac=article&Ntype=4&Id=5354386

98

Figure: Building of Investment Cost

- Equipment:

Equipment Quantity Price per Piece Total (Baht)

Electricity system 62 Units 120 7,440

Water system 284 Meter 42 11,928

Total 19,368

Figure: Equipment of Investment Cost

46 http://www.onestockhome.com/Default.aspx?pageid=61&CAG_ID=22

47 http://www.ittblock.com/

Building Quantity Price per

Piece

Total (Baht)

Refrigerated room 1 Room 620,000 620,000

Color 10 Tanks 3,000 30,000

Granite Tiles 703 Box 496.80 349,251

Ceiling 268 Meter 8 2,144

Roofing46

1,250 Units 43 53,750

Cover roofs roll

angle

66 Units 31 2,046

Cement 50 M3

1,400 70,000

Wire Mesh 868 Lines 45 36,456

Brick47

16,704 Units 6 100,224

Building Wages 7 People/6month 200 126,000

Total 1,389,871

99

Depreciation

Items Years

Building 10

Equipment

Electricity system 10

Water system 10

Figure: Depreciation of Building and Equipments

100

Depreciation of Total Items

Zone

No

Item

Units

Price

Per

Unit

(Baht)

Total

Cost

Use

Life

(Year)

Annual

Depreciati

on

Monthly

Depreciati

on

Building 1 Building 1 1,389,871 1,389,871 10 138,987.1 11,582.26

Equipments

1 Electricit

y system 62 120

7,440 10 744 62

2 Water

system 284 42 11,928

10 1,192.8 99.4

Office

Restroom

1

Flush

toilet

NASCO

5 1,600 8,000 10 800.00 66.67

2

Toilet

Hose

America

n

standard

5 170 850 10

85.00 7.08

3

Navel

basin

America

n

standard

2 700 1400 10 140.00 11.66

4

Faucet

America

n

standard

2 350 700 10 70.00 5.83

5

Chamber

pot

COTTO

4 900 3600 10 36.00 30.00

6

Mirror

Plastic

ABS

2 100 200 10 20.00 1.67

101

7 Bin 9

liter 2 130 260

5 52.00 4.33

8

Ventilato

rs

TOSHIB

A VF-

20P 8”

2 850 1,700 10 170.00 14.17

9

Light

Blue

MEGAM

AN

8 150 1,200 5

240.00 20.00

10

Toilet

tissue

box

Stainless

5 100 500 10 50.00 4.17

11

Foot

scraper

Cotton

80X50

cm

2 500 1,000 10 100.00 8.33

Office

Meeting

Room

1

conferen

ce table

12 sit

1 set 15,000 15,000 10

1500.00 125.00

2

Projector

BenQ

Projector

DLP-

MS500

1 11,600 11,600 10

1,160 96.67

3

Projector

Screen

PS-120V

244x183

cm.

1 5,000 5,000 10

500.00 41.67

4

Light

MEGAM

AN

4 150 600 5 120.00 10.00

102

5

Air

condition

MITSUB

ISHI

MSZ-

SGE09V

A

1 23,900 23,900 15

1593.33 132.78

6

Compute

r

Acer

Aspire

G5910-

254G1T0

0MGi

1 17,000 17,000 10 1700.00 141.67

Living

Room

1 Sofa

OPIA set 1 8,800 8,800

10 880.00 73.33

2 CCTV

KPC252 1 1,600 1,600

10 160.00 13.33

3

Air

Conditio

n

MITSUB

ISHI

MSZ-

SGE09V

A

1 23,900 23,900 15

1593.33 132.78

4

Televisio

n

Samsung

LCD TV

32”

1 12,000 12,000 15

800.00 66.67

Kitchen

Room

1

Electric

kettle.

MISUSI

TA KP-

25S 2.5

1 590 590 10 59.00 4.92

2

Refrigera

tor

SHARP

SJ-N15S

1 5,400 5,400 15

360.00 30.00

103

,5.2

3

Microwa

ve

ELECTR

OLUX

1 4,500 4,500 10

450.00 37.50

4

Sink

clean

Diamond

DMB

100A

1 1,000 1,000 10 100.00 8.33

5

Ventilato

rs

TOSHIB

A VF-

20P 8”

1 850 850 10

85.00 7.08

6

Light

MEGAM

AN

2 150 300 5 60.00 5.00

7

Faucet

America

n

standard

1 350 350 10 35.00 2.92

Working

Room

1

Table

120x60x

75 cm

10 2,500 25,000 10 2500.00 208.33

2

Chair

54(W) x

48(D) x

90(H)

cm.

10 900 9,000 10

900.00 75.00

3

Compute

r PC

Acer

Aspire

M3970-

212G1T0

0Mi/900

3

10 17,000 170,000 10 17000.00 1416.67

4 Wireless

transmitt2 2,700 5,400

10 540.00 45.00

104

er 3Com

Office

Connect

ADSL

5

Telephon

e

Panasoni

c KX-

T2371M

X

10 900 9,000 10 900.00 75.00

6

Fax

phone

PANAS

ONIC

KX-

FL422C

X

2 7,800 15,600 10

1560.00 130.00

7 Copy

machine 1 3,500 3,500

10 350.00 29.17

8 Partition 27 2,000 54,000 10 5400.00 450.00

9

Cutting e

lectricity

HI-

LIGHT

1 8,500 8,500 10

850.00 70.83

10

Fire

Extinguis

her

1 650 650 10

65.00 5.42

11

Drawer 5

ชั้น 10 540 5,400

10 540.00 45.00

12

Glue

UHU/

STIC

1

pack 300 300 1 300.00 25.00

13

Cutter

OKA

cutter

10 30 300 5 60.00 5.00

14 Scissors

Elephant 10 50 500 5 100.00 8.33

105

8”

15

File

Elephant

Econ

File

50

File 60 3,000

5 600.00 50.00

16 Pen

5

pack 250 1,250

2 625.00 52.08

17 Clip

5

pack 45 225

5 45.00 3.75

18

Pencil

Maped /

black

peps

5

pack 40 200

2 100.00 8.33

19 Sharpene

r 3 450 1,350

5 270.00 22.50

20

Plastic

tape

POLYSE

AL

5

pack 130 650

2 325.00 27.08

21

Staple

E'SY / E-

40

5

pack 50 250

2 125.00 10.42

22

Cooler

water

Maxcool

STH

1 7,900 7,900 5

1580.00 131.67

23 Calculato

r 10 350 3,500 5 700.00 58.33

24 Stapler 10 65 650

5 130.00 10.83

25 Rubber

stamp 10 25 250 5 50.00 4.17

26

Paper

Double

A A4

5 box 500 2,500 1

2500.00 208.33

27 Paper

note

5

pack 25 125

2 62.5 5.21

106

28

Light

MEGAM

AN

16 150 2,400 5 480.00 40.00

29 Filing

cabinet 10 2,800 28,000

10 2800.00 233.33

30

Air

condition

MITSUB

ISHI

2 23,900 47,800 15

3186.67 265.56

31 CCTV

KPC252 2 1,600 3,200

10 320.00 26.67

Manager

Room

1 Table 1set 8,300 8,300

10 830.00 69.17

2 Filing

cabinet 1 4,000 4,000 10 400.00 33.33

3 Filing

cabinet 1 5,000 5,000

10 500.00 41.67

4 Chair

PE-621H 1 2,600 2,600

10 260.00 21.67

5 Filing

cabinet 1 7,500 7,500

10 750.00 62.50

6

Telephon

e

Panasoni

c

1 900 900 8 112.50 9.38

7

Compute

r Acer

Aspire

1 17,000 17,000 10

1700.00 141.67

8

Televisio

n

Samsung

1 12,000 12,000 10

1200.00 100.00

9

Air

condition

MITSUB

ISHI

1 23,900 23,900 15

1593.33 132.78

10 CCTV 1 1,600 1,600

10 160.00 13.33

107

KPC252

11 Lamp

BEC 1 850 850

10 85.00 7.08

12

Light

MEGAM

AN

4 150 600 5 120.00 10.00

13 Bin 9

liter 1 130 130

5 26.00 2.17

14

Wireless

transmitt

er 3Com

Office

1 2,700 2,700 10

270.00 22.50

15 Paper

note 1pack 25 25 2 12.50 1.04

16 Rubber

stamp 1 25 25

5 5.00 0.42

Warehouse

1

Cutting e

lectricity

HI-

LIGHT

3 8,500 25,500 10 2550.00 212.50

2

fingerpri

nt scanne

r

2 16,000 32,000 10

3200.00 266.67

3 Fire

Hose Set 2 8,200 16,400

10 1640.00 136.67

4

RFID

label

Tags

20 10,000 200,000 10

200,000 16666.67

5 CCTV

KPC252 6 1,600 9,600

10 960.00 80.00

6 Folk lift

JRP 2 600,000 1,200,000

20 60,000.00 5,000.00

7 Industrie

s Ladder 4 1,800 7,200

15 480.00 40.00

108

Figure: Depreciation of Total Items

8

Hand

Lift

HECKE

R

5 11,000 55,000 15

3666.67 305.56

9

Machine

control

Micro

Fog

machine

2 12,000 24,000 20

1200.00 100.00

10

Air

condition

MITSUB

ISHI

1 23,900 23,900 15

1593.33 132.78

11

Telephon

e

Panasoni

c

2 890 1,780 10 178.00 14.83

12 Bin 240

liter 6 1,900 11,436 5 2,287.20 190.60

Total 3,669,885 485,036.26 40409.32

109

Depreciation of 1st Year in monthly

Zone No Item

Uni

ts 1 2 3 4 5 6 7 8 9 10 11 12 Total

Buildi

ng 1 Building

1 11,582.26 11,582.26 11,582.26 11,582.26 11,582.26 11,582.26 11,582.26 11,582

.26 11,582.26 11,582.26 11,582.26 11,582.26

138,98

7.1

Equip

ment 1

Electricit

y system 62

62 62 62 62 62 62 62 62 62 62 62 62 744

Office

Restro

om

2 Water

system 284

99.4 99.4 99.4 99.4 99.4 99.4 99.4 99.4 99.4 99.4 99.4 99.4 1,192.

8

1

Flush

toilet

NASCO

5 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 800.00

2

Toilet

Hose

American

standard

5 7.08 7.08 7.08 7.08 7.08 7.08 7.08 7.08 7.08 7.08 7.08 7.08 85.00

3

Navel

basin

American

standard

2 11.66 11.66 11.66 11.66 11.66 11.66 11.66 11.66 11.66 11.66 11.66 11.66 140.00

4

Faucet

American

standard

2 5.83 5.83 5.83 5.83 5.83 5.83 5.83 5.83 5.83 5.83 5.83 5.83 70.00

5

Chamber

pot

COTTO

4 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 36.00

6

Mirror

Plastic

ABS

2 1.67 1.67 1.67 1.67 1.67 1.67 1.67 1.67 1.67 1.67 1.67 1.67 20.00

7 Bin 9 liter 2 4.33 4.33 4.33 4.33 4.33 4.33 4.33 4.33 4.33 4.33 4.33 4.33 52.00

8

Ventilator

s

TOSHIB

A VF-

20P 8”

2 14.17 14.17 14.17 14.17 14.17 14.17 14.17 14.17 14.17 14.17 14.17 14.17 170.00

9

Light

Blue

MEGAM

AN

8 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 240.00

10

Toilet

tissue box

Stainless

5 4.17 4.17 4.17 4.17 4.17 4.17 4.17 4.17 4.17 4.17 4.17 4.17 50.00

110

11

Foot

scraper

Cotton

80X50

cm

2 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 100.00

Office

Meetin

g

Room

1

conferenc

e table 12

sit

1

set 125.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00 125.00

1500.0

0

2

Projector

BenQ

Projector

DLP-

MS500

1 96.67 96.67 96.67 96.67 96.67 96.67 96.67 96.67 96.67 96.67 96.67 96.67 1,160.

00

3

Projector

Screen

PS-120V

244x183

cm.

1 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 500.00

4

Light

MEGAM

AN

4 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 120.00

5

Air

condition

MITSUB

ISHI

MSZ-

SGE09V

A

1 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 1593.3

3

6

Computer

Acer

Aspire

G5910-

254G1T0

0MGi

1 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67 1700.0

0

Living

Room

1

Sofa

OPIA set 1 73.33 73.33 73.33 73.33 73.33 73.33 73.33 73.33 73.33 73.33 73.33 73.33 880.00

2

CCTV

KPC252 1 13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33 160.00

3

Air

Condition

MITSUB

ISHI

MSZ-

SGE09V

A

1 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 1593.3

3

4

Televisio

n

Samsung

LCD TV

32”

1 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 66.67 800.00

Kitche

n

Room

1

Electric k

ettle.

MISUSIT

A KP-

25S 2.5

1 4.92 4.92 4.92 4.92 4.92 4.92 4.92 4.92 4.92 4.92 4.92 4.92 59.00

2

Refrigerat

or

SHARP

SJ-N15S

,5.2

1 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 360.00

111

3

Microwa

ve

ELECTR

OLUX

1 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 37.50 450.00

4

Sink

clean

Diamond

DMB

100A

1 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 100.00

5

Ventilator

s

TOSHIB

A VF-

20P 8”

1 7.08 7.08 7.08 7.08 7.08 7.08 7.08 7.08 7.08 7.08 7.08 7.08 85.00

6

Light

MEGAM

AN

2 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 60.00

7

Faucet

American

standard

1 2.92 2.92 2.92 2.92 2.92 2.92 2.92 2.92 2.92 2.92 2.92 2.92 35.00

Worki

ng

Room

1

Table

120x60x7

5 cm

10 208.33 208.33 208.33 208.33 208.33 208.33 208.33 208.33 208.33 208.33 208.33 208.33 2500.0

0

2

Chair

54(W) x

48(D) x

90(H)

cm.

10 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 900.00

3

Computer

PC Acer

Aspire

M3970-

212G1T0

0Mi/9003

10 1416.67 1416.67 1416.67 1416.67 1416.67 1416.67 1416.67 1416.6

7 1416.67 1416.67 1416.67 1416.67

17000.

00

4

Wireless t

ransmitter

3Com

OfficeCo

nnect

ADSL

2 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 540.00

5

Telephon

e

Panasonic

KX-

T2371M

X

10 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 75.00 900.00

6

Fax

phone

PANASO

NIC KX-

FL422CX

2 130.00 130.00 130.00 130.00 130.00 130.00 130.00 130.00 130.00 130.00 130.00 130.00 1560.0

0

7

Copy

machine 1 29.17 29.17 29.17 29.17 29.17 29.17 29.17 29.17 29.17 29.17 29.17 29.17 350.00

8 Partition 27 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00 450.00

5400.0

0

9

Cutting el

ectricity

HI-

LIGHT

1 70.83 70.83 70.83 70.83 70.83 70.83 70.83 70.83 70.83 70.83 70.83 70.83 850.00

10

Fire

Extinguis

her

1 5.42 5.42 5.42 5.42 5.42 5.42 5.42 5.42 5.42 5.42 5.42 5.42 65.00

112

11

Drawer 5

ช้ัน 10 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 45.00 540.00

12

Glue

UHU/

STIC

1

pac

k

25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 300.00

13

Cutter

OKA

cutter

10 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 60.00

14

Scissors

Elephant

8”

10 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 100.00

15

File

Elephant

Econ File

50

File 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 600.00

16 Pen

5

pac

k

52.08 52.08 52.08 52.08 52.08 52.08 52.08 52.08 52.08 52.08 52.08 52.08 625.00

17 Clip

5

pac

k

3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 3.75 45.00

18

Pencil

Maped /

black

peps

5

pac

k

8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 8.33 100.00

19 Sharpener 3 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 270.00

20

Plastic

tape

POLYSE

AL

5

pac

k

27.08 27.08 27.08 27.08 27.08 27.08 27.08 27.08 27.08 27.08 27.08 27.08 325.00

21

Staple

E'SY / E-

40

5

pac

k

10.42 10.42 10.42 10.42 10.42 10.42 10.42 10.42 10.42 10.42 10.42 10.42 125.00

22

Cooler

water

Maxcool

STH

1 131.67 131.67 131.67 131.67 131.67 131.67 131.67 131.67 131.67 131.67 131.67 131.67 1580.0

0

23

Calculato

r 10 58.33 58.33 58.33 58.33 58.33 58.33 58.33 58.33 58.33 58.33 58.33 58.33 700.00

24 Stapler 10 10.83 10.83 10.83 10.83 10.83 10.83 10.83 10.83 10.83 10.83 10.83 10.83 130.00

25 Rubber

stamp

10 4.17 4.17 4.17 4.17 4.17 4.17 4.17 4.17 4.17 4.17 4.17 4.17 50.00

26

Paper

Double A

A4

5

box 208.33 208.33 208.33 208.33 208.33 208.33 208.33 208.33 208.33 208.33 208.33 208.33

2500.0

0

27

Paper

note

5

pac

k

5.21 5.21 5.21 5.21 5.21 5.21 5.21 5.21 5.21 5.21 5.21 5.21 62.5

28

Light

MEGAM

AN

16 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 480.00

29

Filing

cabinet 10 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33 233.33

2800.0

0

113

30

Air

condition

MITSUB

ISHI

2 265.56 265.56 265.56 265.56 265.56 265.56 265.56 265.56 265.56 265.56 265.56 265.56 3186.6

7

31

CCTV

KPC252 2 26.67 26.67 26.67 26.67 26.67 26.67 26.67 26.67 26.67 26.67 26.67 26.67 320.00

Manag

er

Room

1 Table 1set 69.17 69.17 69.17 69.17 69.17 69.17 69.17 69.17 69.17 69.17 69.17 69.17 830.00

2

Filing

cabinet 1 33.33 33.33 33.33 33.33 33.33 33.33 33.33 33.33 33.33 33.33 33.33 33.33 400.00

3

Filing

cabinet 1 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 41.67 500.00

4

Chair

PE-621H 1 21.67 21.67 21.67 21.67 21.67 21.67 21.67 21.67 21.67 21.67 21.67 21.67 260.00

5

Filing

cabinet 1 62.50 62.50 62.50 62.50 62.50 62.50 62.50 62.50 62.50 62.50 62.50 62.50 750.00

6

Telephon

e

Panasonic

1 9.38 9.38 9.38 9.38 9.38 9.38 9.38 9.38 9.38 9.38 9.38 9.38 112.50

7

Computer

Acer

Aspire

1 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67 141.67 1700.0

0

8

Televisio

n

Samsung

1 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 1200.0

0

9

Air

condition

MITSUB

ISHI

1 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 1593.3

3

10

CCTV

KPC252 1 13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33 13.33 160.00

11

Lamp

BEC 1 7.08 7.08 7.08 7.08 7.08 7.08 7.08 7.08 7.08 7.08 7.08 7.08 85.00

12

Light

MEGAM

AN

4 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 120.00

13 Bin 9 liter 1 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.17 2.17 26.00

14

Wireless t

ransmitter

3Com

Office

1 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 22.50 270.00

15

Paper

note

1pa

ck 1.04 1.04 1.04 1.04 1.04 1.04 1.04 1.04 1.04 1.04 1.04 1.04 12.50

16

Rubber

stamp 1 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 5.00

1

Cutting el

ectricity

HI-

LIGHT

3 212.50 212.50 212.50 212.50 212.50 212.50 212.50 212.50 212.50 212.50 212.50 212.50 2550.0

0

2

fingerprin

t scanner 2 266.67 266.67 266.67 266.67 266.67 266.67 266.67 266.67 266.67 266.67 266.67 266.67

3200.0

0

114

Wareh

ouse

3

Fire Hose

Set 2 136.67 136.67 136.67 136.67 136.67 136.67 136.67 136.67 136.67 136.67 136.67 136.67

1640.0

0

4

RFID

label

Tags

20 16,666.67 16,666.67 16,666.67 16,666.67 16,666.67 16,666.67 16,666.67 16,666

.67 16,666.67 16,666.67 16,666.67 16,666.67

200,00

0

5

CCTV

KPC252 6 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 960.00

6

Folk lift

JRP 2 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00

5,000.

00 5,000.00 5,000.00 5,000.00 5,000.00

60,000

.00

7

Industries

Ladder 4 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 480.00

8

Hand Lift

HECKER 5 305.56 305.56 305.56 305.56 305.56 305.56 305.56 305.56 305.56 305.56 305.56 305.56

3666.6

7

9

Machine

control

Micro

Fog

machine

2 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 1200.0

0

10

Air

condition

MITSUB

ISHI

1 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 132.78 1593.3

3

11

Telephon

e

Panasonic

2 14.83 14.83 14.83 14.83 14.83 14.83 14.83 14.83 14.83 14.83 14.83 14.83 178.00

12

Bin 240

liter 6 190.60 190.60 190.60 190.60 190.60 190.60 190.60 190.60 190.60 190.60 190.60 190.60

2,287.

20

Total 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409

.22 40,409.22 40,409.22 40,409.22 40,409.22

484,91

0.64

Table: Depreciation of 1st Year in monthly

115

Depreciation of 2nd

Year

Zone No. Item Units

Price

Per

Unit

(Baht)

Total

Cost

Use

Life

(Year)

Depreciatio

n of the

year

Accumulate

Depreciatio

n

Savage

Value

Building 1 Building 1 1,389,871 1,389,871 10 138,987.1 277,974.2 1,111,896.8

Equipme

nt

1

Electricity

system 62 120 7,440 10 744 1488 5,952

2

Water

system 284 42 11,928 10 1,192.8 2385.6 9,542

Office

Restroo

m

1 Flush toilet

NASCO 5 1,600 8,000 10 800.00 1600 6,400

2

Toilet Hose

American

standard

5 170 850 10 85.00 170 680

3

Navel basin

American

standard

2 700 1400 10 140.00 280 1,120

4

Faucet

American

standard

2 350 700 10 70.00 140 560

5 Chamber pot

COTTO 4 900 3600 10 36.00 72 3,528

6 Mirror

Plastic ABS 2 100 200 10 20.00 40 160

7 Bin 9 liter 2 130 260 5 52.00 104 156

8

Ventilators

TOSHIBA

VF-20P 8”

2 850 1,700 10 170.00 340 1,360

9

Light Blue

MEGAMAN

8 150 1,200 5 240.00 480 720

10

Toilet tissue

box

Stainless

5 100 500 10 50.00 100 400

116

11

Foot scraper

Cotton

80X50 cm

2 500 1,000 10 100.00 200 800

Office

Meeting

Room

1 conference

table 12 sit 1 set 15,000 15,000 10 1500.00 3000 12,000

2

Projector

BenQ

Projector

DLP-MS500

1 11,600 11,600 10 1,160 2,320 9.280

3

Projector

Screen PS-

120V

244x183 cm.

1 5,000 5,000 10 500.00 1000 4,000

4

Light

MEGAMAN

4 150 600 5 120.00 240 360

5

Air

condition

MITSUBIS

HI MSZ-

SGE09VA

1 23,900 23,900 15 1593.33 3186.66 20,713

6

Computer

Acer Aspire

G5910-

254G1T00M

Gi

1 17,000 17,000 10 1700.00 3400 13,600

Living

Room

1 Sofa OPIA

set 1 8,800 8,800 10 880.00 1760 7,040

2 CCTV

KPC252 1 1,600 1,600 10 160.00 320 1,280

3

Air

Condition

MITSUBIS

HI

MSZ-

SGE09VA

1 23,900 23,900 15 1593.33 3186.66 20,713

4

Television

Samsung

LCD TV

32”

1 12,000 12,000 15 800.00 1600 10,400

Kitchen

Room

1

Electric kettl

e.

MISUSITA

KP-25S 2.5

1 590 590 10 59.00 118 472

2

Refrigerator

SHARP SJ-

N15S ,5.2

1 5,400 5,400 15 360.00 720 4,680

3

Microwave

ELECTROL

UX

1 4,500 4,500 10 450.00 900 3,600

117

4

Sink clean

Diamond

DMB 100A

1 1,000 1,000 10 100.00 200 800

5

Ventilators

TOSHIBA

VF-20P 8”

1 850 850 10 85.00 170 680

6 Light

MEGAMAN 2 150 300 5 60.00 120 180

7

Faucet

American

standard

1 350 350 10 35.00 70 280

Working

Room

1

Table

120x60x75

cm

10 2,500 25,000 10 2500.00 5000 20,000

2

Chair 54(W)

x 48(D) x

90(H) cm.

10 900 9,000 10 900.00 1800 7,200

3

Computer

PC Acer

Aspire

M3970-

212G1T00M

i/9003

10 17,000 170,000 10 17000.00 34000 136,000

4

Wireless tra

nsmitter

3Com

OfficeConne

ct ADSL

2 2,700 5,400 10 540.00 1080 4,320

5

Telephone

Panasonic

KX-

T2371MX

10 900 9,000 10 900.00 1800 7,200

6

Fax phone

PANASONI

C KX-

FL422CX

2 7,800 15,600 10 1560.00 3120 12,480

7 Copy

machine 1 3,500 3,500 10 350.00 700 2,800

8 Partition 27 2,000 54,000 10 5400.00 10800 43,200

9

Cutting elect

ricity HI-

LIGHT

1 8,500 8,500 10 850.00 1700 6,800

10 Fire

Extinguisher 1 650 650 10 65.00 130 520

11 Drawer 5 ชั้น 10 540 5,400 10 540.00 1080 4,320

12 Glue UHU/

STIC

1

pack 300 300 1 0 300 0

13 Cutter OKA

cutter 10 30 300 5 60.00 120 180

118

14 Scissors

Elephant 8” 10 50 500 5 100.00 200 300

15

File

Elephant

Econ File

50

File 60 3,000 5 600.00 1200 1,800

16 Pen 5

pack 250 1,250 2 625.00 1250 0

17 Clip 5

pack 45 225 5 45.00 90 135

18

Pencil

Maped /

black peps

5

pack 40 200 2 100.00 200 0

19 Sharpener 3 450 1,350 5 270.00 540 810

20 Plastic tape

POLYSEAL

5

pack 130 650 2 325.00 650 0

21 Staple E'SY

/ E-40

5

pack 50 250 2 125.00 250 0

22

Cooler water

Maxcool

STH

1 7,900 7,900 5 1580.00 3160 4,740

23 Calculator 10 350 3,500 5 700.00 1400 2,100

24 Stapler 10 65 650 5 130.00 260 390

25 Rubber

stamp 10 25 250 5 50.00 100 150

26

Paper

Double A

A4

5 box 500 2,500 1 0 2,500 0

27 Paper note 5

pack 25 125 2 62.5 125 0

28 Light

MEGAMAN 16 150 2,400 5 480.00 960 1,440

29 Filing

cabinet 10 2,800 28,000 10 2800.00 5600 22,400

30

Air

condition

MITSUBIS

HI

2 23,900 47,800 15 3186.67 6373.34 41,427

31 CCTV

KPC252 2 1,600 3,200 10 320.00 640 2,560

1 Table 1set 8,300 8,300 10 830.00 1660 6,640

2 Filing

cabinet 1 4,000 4,000 10 400.00 800 3,200

119

Manager

Room

3 Filing

cabinet 1 5,000 5,000 10 500.00 1000 4,000

4 Chair PE-

621H 1 2,600 2,600 10 260.00 520 2,080

5 Filing

cabinet 1 7,500 7,500 10 750.00 1500 6,000

6 Telephone

Panasonic 1 900 900 8 112.50 225 675

7 Computer

Acer Aspire 1 17,000 17,000 10 1700.00 3400 13,600

8 Television

Samsung 1 12,000 12,000 10 1200.00 2400 9,600

9

Air

condition

MITSUBIS

HI

1 23,900 23,900 15 1593.33 3186.66 20,713

10 CCTV

KPC252 1 1,600 1,600 10 160.00 320 1,280

11 Lamp BEC 1 850 850 10 85.00 170 680

12 Light

MEGAMAN 4 150 600 5 120.00 240 360

13 Bin 9 liter 1 130 130 5 26.00 52 78

14

Wireless tra

nsmitter

3Com Office

1 2,700 2,700 10 270.00 540 2,160

15 Paper note 1pack 25 25 2 12.50 25 0

16 Rubber

stamp 1 25 25 5 5.00 10 15

Warehou

se

1

Cutting elect

ricity HI-

LIGHT

3 8,500 25,500 10 2550.00 5100 20,400

2 fingerprint s

canner 2 16,000 32,000 10 3200.00 6400 25,600

3 Fire Hose

Set 2 8,200 16,400 10 1640.00 3280 13,120

4 RFID label

Tags 20 10,000 200,000 10 20,000 40,000 160,000

5 CCTV

KPC252 6 1,600 9,600 10 960.00 1920 7,680

6 Folk lift JRP 2 600,000 1,200,000 20 60,000.00 120000 1,080,000

7 Industries

Ladder 4 1,800 7,200 15 480.00 960 6,240

120

8 Hand Lift

HECKER 5 11,000 55,000 15 3666.67 7333.34 47,667

9

Machine

control

Micro Fog

machine

2 12,000 24,000 20 1200.00 2400 21,600

10

Air

condition

MITSUBIS

HI

1 23,900 23,900 15 1593.33 3186.66 20,713

11 Telephone

Panasonic 2 890 1,780 10 178.00 356 1,424

12 Bin 240 liter 6 1,900 11,436 5 2,287.20 4574.4 6,862

Total 3,665,385 301,786.26 606,372.52 3,049,741.08

Table: Depreciation of 2nd

Year

121

Depreciation of 3rd

Year

Zone No. Item Units

Price

Per

Unit

(Baht)

Total

Cost

Use

Life

(Year)

Depreciati

on of the

year

Accumula

te

Depreciati

on

Savage

Value

Building 1 Building 1 1,389,871 1,389,871 10 138,987.1 416,961.3 972,909.7

Equipment

1

Electricity

system 62 120 7,440 10 744 2232 5,208

2 Water system 284 42 11,928 10 1,192.8 3578.4 8,350

Office

Restroom

1 Flush toilet

NASCO 5 1,600 8,000 10 800.00 2400 5,600

2

Toilet Hose

American

standard

5 170 850 10 85.00 255 595

3

Navel basin

American

standard

2 700 1400 10 140.00 420 980

4

Faucet

American

standard

2 350 700 10 70.00 210 490

5 Chamber pot

COTTO 4 900 3600 10 36.00 108 3,492

6 Mirror Plastic

ABS 2 100 200 10 20.00 60 140

7 Bin 9 liter 2 130 260 5 52.00 156 104

8

Ventilators

TOSHIBA

VF-20P 8”

2 850 1,700 10 170.00 510 1,190

9

Light Blue

MEGAMAN

8 150 1,200 5 240.00 720 480

10 Toilet tissue

box Stainless 5 100 500 10 50.00 150 350

122

11

Foot scraper

Cotton 80X50

cm

2 500 1,000 10 100.00 300 700

Office

Meeting

Room

1 conference

table 12 sit 1 set 15,000 15,000 10 1500.00 4500 10,500

2

Projector

BenQ

Projector

DLP-MS500

1 11,600 11,600 10 1,160 3,480 8,120

3

Projector

Screen PS-

120V 244x183

cm.

1 5,000 5,000 10 500.00 1500 3,500

4

Light

MEGAMAN

4 150 600 5 120.00 360 240

5

Air condition

MITSUBISHI

MSZ-

SGE09VA

1 23,900 23,900 15 1593.33 4779.99 19,120

6

Computer

Acer Aspire

G5910-

254G1T00MG

i

1 17,000 17,000 10 1700.00 5100 11,900

Living

Room

1 Sofa OPIA set 1 8,800 8,800 10 880.00 2640 6,160

2 CCTV

KPC252 1 1,600 1,600 10 160.00 480 1,120

3

Air Condition

MITSUBISHI

MSZ-

SGE09VA

1 23,900 23,900 15 1593.33 4779.99 19,120

4

Television

Samsung LCD

TV 32”

1 12,000 12,000 15 800.00 2400 9,600

Kitchen

Room

1

Electric kettle.

MISUSITA

KP-25S 2.5

1 590 590 10 59.00 177 413

2

Refrigerator

SHARP SJ-

N15S ,5.2

1 5,400 5,400 15 360.00 1080 4,320

3

Microwave

ELECTROLU

X

1 4,500 4,500 10 450.00 1350 3,150

123

4

Sink clean

Diamond

DMB 100A

1 1,000 1,000 10 100.00 300 700

5

Ventilators

TOSHIBA

VF-20P 8”

1 850 850 10 85.00 255 595

6 Light

MEGAMAN 2 150 300 5 60.00 180 120

7

Faucet

American

standard

1 350 350 10 35.00 105 245

Working

Room

1 Table

120x60x75 cm 10 2,500 25,000 10 2500.00 7500 17,500

2

Chair 54(W) x

48(D) x 90(H)

cm.

10 900 9,000 10 900.00 2700 6,300

3

Computer PC

Acer Aspire

M3970-

212G1T00Mi/

9003

10 17,000 170,000 10 17000.00 51000 119,000

4

Wireless trans

mitter 3Com

OfficeConnect

ADSL

2 2,700 5,400 10 540.00 1620 3,780

5

Telephone

Panasonic

KX-T2371MX

10 900 9,000 10 900.00 2700 6,300

6

Fax phone

PANASONIC

KX-FL422CX

2 7,800 15,600 10 1560.00 4680 10,920

7 Copy machine 1 3,500 3,500 10 350.00 1050 2,450

8 Partition 27 2,000 54,000 10 5400.00 16200 37,800

9

Cutting electri

city HI-

LIGHT

1 8,500 8,500 10 850.00 2550 5,950

10 Fire

Extinguisher 1 650 650 10 65.00 195 455

11 Drawer 5 ชั้น 10 540 5,400 10 540.00 1620 3,780

12 Glue UHU/

STIC 1 pack 300 300 1 0 300 0

124

13 Cutter OKA

cutter 10 30 300 5 60.00 180 120

14 Scissors

Elephant 8” 10 50 500 5 100.00 300 200

15 File Elephant

Econ File 50 File 60 3,000 5 600.00 1800 1,200

16 Pen 5 pack 250 1,250 2 0 1250 0

17 Clip 5 pack 45 225 5 45.00 135 90

18 Pencil Maped

/ black peps 5 pack 40 200 2 0 200 0

19 Sharpener 3 450 1,350 5 270.00 810 540

20 Plastic tape

POLYSEAL 5 pack 130 650 2 0 650 0

21 Staple E'SY /

E-40 5 pack 50 250 2 0 250 0

22 Cooler water

Maxcool STH 1 7,900 7,900 5 1580.00 4740 3,160

23 Calculator 10 350 3,500 5 700.00 2100 1,400

24 Stapler 10 65 650 5 130.00 390 260

25 Rubber stamp 10 25 250 5 50.00 150 100

26 Paper Double

A A4 5 box 500 2,500 1 0 2500 0

27 Paper note 5 pack 25 125 2 0 125 0

28 Light

MEGAMAN 16 150 2,400 5 480.00 1440 960

29 Filing cabinet 10 2,800 28,000 10 2800.00 8400 19,600

30 Air condition

MITSUBISHI 2 23,900 47,800 15 3186.67 9560.01 38,240

31 CCTV

KPC252 2 1,600 3,200 10 320.00 960 2,240

Manager 1 Table 1set 8,300 8,300 10 830.00 2490 5,810

125

Room 2 Filing cabinet 1 4,000 4,000 10 400.00 1200 2,800

3 Filing cabinet 1 5,000 5,000 10 500.00 1500 3,500

4 Chair PE-

621H 1 2,600 2,600 10 260.00 780 1,820

5 Filing cabinet 1 7,500 7,500 10 750.00 2250 5,250

6 Telephone

Panasonic 1 900 900 8 112.50 337.5 563

7 Computer

Acer Aspire 1 17,000 17,000 10 1700.00 5100 11,900

8 Television

Samsung 1 12,000 12,000 10 1200.00 3600 8,400

9 Air condition

MITSUBISHI 1 23,900 23,900 15 1593.33 4779.99 19,120

10 CCTV

KPC252 1 1,600 1,600 10 160.00 480 1,120

11 Lamp BEC 1 850 850 10 85.00 255 595

12 Light

MEGAMAN 4 150 600 5 120.00 360 240

13 Bin 9 liter 1 130 130 5 26.00 78 52

14

Wireless trans

mitter 3Com

Office

1 2,700 2,700 10 270.00 810 1,890

15 Paper note 1pack 25 25 2 0 25 0

16 Rubber stamp 1 25 25 5 5.00 15 10

Warehouse

1

Cutting electri

city HI-

LIGHT

3 8,500 25,500 10 2550.00 7650 17,850

2 fingerprint sca

nner 2 16,000 32,000 10 3200.00 9600 22,400

3 Fire Hose Set 2 8,200 16,400 10 1640.00 4920 11,480

4 RFID label

Tags 20 10,000 200,000 10 20,000 60,000 140,000

5 CCTV

KPC252 6 1,600 9,600 10 960.00 2880 6,720

6 Folk lift JRP 2 600,000 1,200,000 20 60,000.00 180000 1,020,000

7 Industries

Ladder 4 1,800 7,200 15 480.00 1440 5,760

8 Hand Lift

HECKER 5 11,000 55,000 15 3666.67 11000.01 44,000

126

9

Machine

control Micro

Fog machine

2 12,000 24,000 20 1200.00 3600 20,400

10 Air condition

MITSUBISHI 1 23,900 23,900 15 1593.33 4779.99 19,120

11 Telephone

Panasonic 2 890 1,780 10 178.00 534 1,246

12 Bin 240 liter 6 1,900 11,436 5 2,287.20 6861.6 4,574

Total 3,665,385 300,536.26 906,908.78 2,758,476.

7

Table: Depreciation of 3rd

Year

127

Depreciation of 4th

Year

Zone No. Item Units

Price

Per

Unit

(Baht)

Total

Cost

Use

Life

(Year)

Depreciation

of the year

Accumulate

Depreciation

Savage

Value

Building 1 Building 1 1,389,871 1,389,87

1 10 138,987.1 555,948.4 833,922.6

Equipme

nt

1

Electricity

system 62 120 7,440 10 744 2976 4,464

2

Water

system 284 42 11,928 10 1,192.8 4771.2 7,157

Office

Restroo

m

1 Flush toilet

NASCO 5 1,600 8,000 10 800.00 3200 4,800

2

Toilet Hose

American

standard

5 170 850 10 85.00 340 510

3

Navel basin

American

standard

2 700 1400 10 140.00 560 840

4

Faucet

American

standard

2 350 700 10 70.00 280 420

5 Chamber pot

COTTO 4 900 3600 10 36.00 144 3,456

6 Mirror

Plastic ABS 2 100 200 10 20.00 80 120

7 Bin 9 liter 2 130 260 5 52.00 208 52

8

Ventilators

TOSHIBA

VF-20P 8”

2 850 1,700 10 170.00 680 1,020

9

Light Blue

MEGAMAN

8 150 1,200 5 240.00 960 240

10

Toilet tissue

box

Stainless

5 100 500 10 50.00 200 300

128

11

Foot scraper

Cotton

80X50 cm

2 500 1,000 10 100.00 400 600

Office

Meeting

Room

1 conference

table 12 sit 1 set 15,000 15,000 10 1500.00 6000 9,000

2

Projector

BenQ

Projector

DLP-MS500

1 11,600 11,600 10 1,160 4,640 6,960

3

Projector

Screen PS-

120V

244x183 cm.

1 5,000 5,000 10 500.00 2000 3,000

4

Light

MEGAMAN

4 150 600 5 120.00 480 120

5

Air

condition

MITSUBIS

HI MSZ-

SGE09VA

1 23,900 23,900 15 1593.33 6373.32 17,527

6

Computer

Acer Aspire

G5910-

254G1T00M

Gi

1 17,000 17,000 10 1700.00 6800 10,200

Living

Room

1 Sofa OPIA

set 1 8,800 8,800 10 880.00 3520 5,280

2 CCTV

KPC252 1 1,600 1,600 10 160.00 640 960

3

Air

Condition

MITSUBIS

HI

MSZ-

SGE09VA

1 23,900 23,900 15 1593.33 6373.32 17,527

4

Television

Samsung

LCD TV

32”

1 12,000 12,000 15 800.00 3200 8,800

Kitchen

Room

1

Electric kettl

e.

MISUSITA

KP-25S 2.5

1 590 590 10 59.00 236 354

2

Refrigerator

SHARP SJ-

N15S ,5.2

1 5,400 5,400 15 360.00 1440 3,960

3

Microwave

ELECTROL

UX

1 4,500 4,500 10 450.00 1800 2,700

4 Sink clean 1 1,000 1,000 10 100.00 400 600

129

Diamond

DMB 100A

5

Ventilators

TOSHIBA

VF-20P 8”

1 850 850 10 85.00 340 510

6 Light

MEGAMAN 2 150 300 5 60.00 240 60

7

Faucet

American

standard

1 350 350 10 35.00 140 210

Working

Room

1

Table

120x60x75

cm

10 2,500 25,000 10 2500.00 10000 15,000

2

Chair 54(W)

x 48(D) x

90(H) cm.

10 900 9,000 10 900.00 3600 5,400

3

Computer

PC Acer

Aspire

M3970-

212G1T00M

i/9003

10 17,000 170,000 10 17000.00 68000 102,000

4

Wireless tra

nsmitter

3Com

OfficeConne

ct ADSL

2 2,700 5,400 10 540.00 2160 3,240

5

Telephone

Panasonic

KX-

T2371MX

10 900 9,000 10 900.00 3600 5,400

6

Fax phone

PANASONI

C KX-

FL422CX

2 7,800 15,600 10 1560.00 6240 9,360

7 Copy

machine 1 3,500 3,500 10 350.00 1400 2,100

8 Partition 27 2,000 54,000 10 5400.00 21600 32,400

9

Cutting elect

ricity HI-

LIGHT

1 8,500 8,500 10 850.00 3400 5,100

10 Fire

Extinguisher 1 650 650 10 65.00 260 390

11 Drawer 5 ชั้น 10 540 5,400 10 540.00 2160 3,240

12 Glue UHU/

STIC 1 pack 300 300 1 0 300 0

130

13 Cutter OKA

cutter 10 30 300 5 60.00 240 60

14 Scissors

Elephant 8” 10 50 500 5 100.00 400 100

15

File

Elephant

Econ File

50 File 60 3,000 5 600.00 2400 600

16 Pen 5 pack 250 1,250 2 0 1250 0

17 Clip 5 pack 45 225 5 45.00 180 45

18

Pencil

Maped /

black peps

5 pack 40 200 2 0 200 0

19 Sharpener 3 450 1,350 5 270.00 1080 270

20 Plastic tape

POLYSEAL 5 pack 130 650 2 0 650 0

21 Staple E'SY

/ E-40 5 pack 50 250 2 0 250 0

22

Cooler water

Maxcool

STH

1 7,900 7,900 5 1580.00 6320 1,580

23 Calculator 10 350 3,500 5 700.00 2800 700

24 Stapler 10 65 650 5 130.00 520 130

25 Rubber

stamp 10 25 250 5 50.00 200 50

26

Paper

Double A

A4

5 box 500 2,500 1 0 2500 0

27 Paper note 5 pack 25 125 2 0 125 0

28 Light

MEGAMAN 16 150 2,400 5 480.00 1920 480

29 Filing

cabinet 10 2,800 28,000 10 2800.00 11200 16,800

30

Air

condition

MITSUBIS

HI

2 23,900 47,800 15 3186.67 12746.68 35,053

31 CCTV

KPC252 2 1,600 3,200 10 320.00 1280 1,920

1 Table 1set 8,300 8,300 10 830.00 3320 4,980

2 Filing

cabinet 1 4,000 4,000 10 400.00 1600 2,400

131

Manager

Room

3 Filing

cabinet 1 5,000 5,000 10 500.00 2000 3,000

4 Chair PE-

621H 1 2,600 2,600 10 260.00 1040 1,560

5 Filing

cabinet 1 7,500 7,500 10 750.00 3000 4,500

6 Telephone

Panasonic 1 900 900 8 112.50 450 450

7 Computer

Acer Aspire 1 17,000 17,000 10 1700.00 6800 10,200

8 Television

Samsung 1 12,000 12,000 10 1200.00 4800 7,200

9

Air

condition

MITSUBIS

HI

1 23,900 23,900 15 1593.33 6373.32 17,527

10 CCTV

KPC252 1 1,600 1,600 10 160.00 640 960

11 Lamp BEC 1 850 850 10 85.00 340 510

12 Light

MEGAMAN 4 150 600 5 120.00 480 120

13 Bin 9 liter 1 130 130 5 26.00 104 26

14

Wireless tra

nsmitter

3Com Office

1 2,700 2,700 10 270.00 1080 1,620

15 Paper note 1pack 25 25 2 0 25 0

16 Rubber

stamp 1 25 25 5 5.00 20 5

Warehou

se

1

Cutting elect

ricity HI-

LIGHT

3 8,500 25,500 10 2550.00 10200 15,300

2 fingerprint s

canner 2 16,000 32,000 10 3200.00 12800 19,200

3 Fire Hose

Set 2 8,200 16,400 10 1640.00 6560 9,840

4 RFID label

Tags 20 10,000 200,000 10 20,000 80,000 120,000

5 CCTV

KPC252 6 1,600 9,600 10 960.00 3840 5,760

6 Folk lift JRP 2 600,000 1,200,00

0 20 60,000.00 240000 960,000

132

7 Industries

Ladder 4 1,800 7,200 15 480.00 1920 5,280

8 Hand Lift

HECKER 5 11,000 55,000 15 3666.67 14666.68 40,333

9

Machine

control

Micro Fog

machine

2 12,000 24,000 20 1200.00 4800 19,200

10

Air

condition

MITSUBIS

HI

1 23,900 23,900 15 1593.33 6373.32 17,527

11 Telephone

Panasonic 2 890 1,780 10 178.00 712 1,068

12 Bin 240 liter 6 1,900 11,436 5 2,287.20 9148.8 2,287

Total 3,665,38

5 300,536.26 419,773.12

2,457,940.

6

Table: Depreciation of 4th

Year

133

Depreciation of 5th

Year

Zone No. Item Units

Price

Per

Unit

(Baht)

Total

Cost

Use

Life

(Year)

Depreciatio

n of the

year

Accumulate

Depreciatio

n

Savage

Value

Building 1 Building 1 1,389,871 1,389,871 10 138,987.1 694,935.5 694,935.

5

Equipment

1

Electricity

system 62 120 7,440 10 744 3720 3,720

2 Water system 284 42 11,928 10 1,192.8 5964 5,964

Office

Restroom

1 Flush toilet

NASCO 5 1,600 8,000 10 800.00 4000 4,000

2

Toilet Hose

American

standard

5 170 850 10 85.00 425 425

3

Navel basin

American

standard

2 700 1400 10 140.00 700 700

4

Faucet

American

standard

2 350 700 10 70.00 350 350

5 Chamber pot

COTTO 4 900 3600 10 36.00 180 3,420

6 Mirror Plastic

ABS 2 100 200 10 20.00 100 100

7 Bin 9 liter 2 130 260 5 52.00 260 0

8

Ventilators

TOSHIBA

VF-20P 8”

2 850 1,700 10 170.00 850 850

9

Light Blue

MEGAMAN

8 150 1,200 5 240.00 1200 0

10 Toilet tissue

box Stainless 5 100 500 10 50.00 250 250

11

Foot scraper

Cotton 80X50

cm

2 500 1,000 10 100.00 500 500

134

Office

Meeting

Room

1 conference

table 12 sit 1 set 15,000 15,000 10 1500.00 7500 7,500

2

Projector

BenQ

Projector

DLP-MS500

1 11,600 11,600 10 1160 5,800 5,800

3

Projector

Screen PS-

120V 244x183

cm.

1 5,000 5,000 10 500.00 2500 2,500

4

Light

MEGAMAN

4 150 600 5 120.00 600 0

5

Air condition

MITSUBISHI

MSZ-

SGE09VA

1 23,900 23,900 15 1593.33 7966.65 15,933

6

Computer

Acer Aspire

G5910-

254G1T00MG

i

1 17,000 17,000 10 1700.00 8500 8,500

Living

Room

1 Sofa OPIA set 1 8,800 8,800 10 880.00 4400 4,400

2 CCTV

KPC252 1 1,600 1,600 10 160.00 800 800

3

Air Condition

MITSUBISHI

MSZ-

SGE09VA

1 23,900 23,900 15 1593.33 7966.65 15,933

4

Television

Samsung LCD

TV 32”

1 12,000 12,000 15 800.00 4000 8,000

Kitchen

Room

1

Electric kettle.

MISUSITA

KP-25S 2.5

1 590 590 10 59.00 295 295

2

Refrigerator

SHARP SJ-

N15S ,5.2

1 5,400 5,400 15 360.00 1800 3,600

3

Microwave

ELECTROLU

X

1 4,500 4,500 10 450.00 2250 2,250

4

Sink clean

Diamond

DMB 100A

1 1,000 1,000 10 100.00 500 500

5

Ventilators

TOSHIBA

VF-20P 8”

1 850 850 10 85.00 425 425

135

6 Light

MEGAMAN 2 150 300 5 60.00 300 0

7

Faucet

American

standard

1 350 350 10 35.00 175 175

Working

Room

1 Table

120x60x75 cm 10 2,500 25,000 10 2500.00 12500 12,500

2

Chair 54(W) x

48(D) x 90(H)

cm.

10 900 9,000 10 900.00 4500 4,500

3

Computer PC

Acer Aspire

M3970-

212G1T00Mi/

9003

10 17,000 170,000 10 17000.00 85000 85,000

4

Wireless trans

mitter 3Com

OfficeConnect

ADSL

2 2,700 5,400 10 540.00 2700 2,700

5

Telephone

Panasonic

KX-T2371MX

10 900 9,000 10 900.00 4500 4,500

6

Fax phone

PANASONIC

KX-FL422CX

2 7,800 15,600 10 1560.00 7800 7,800

7 Copy machine 1 3,500 3,500 10 350.00 1750 1,750

8 Partition 27 2,000 54,000 10 5400.00 27000 27,000

9

Cutting electri

city HI-

LIGHT

1 8,500 8,500 10 850.00 4250 4,250

10 Fire

Extinguisher 1 650 650 10 65.00 325 325

11 Drawer 5 ชั้น 10 540 5,400 10 540.00 2700 2,700

12 Glue UHU/

STIC 1 pack 300 300 1 0 300 0

13 Cutter OKA

cutter 10 30 300 5 60.00 300 0

14 Scissors

Elephant 8” 10 50 500 5 100.00 500 0

136

15 File Elephant

Econ File 50 File 60 3,000 5 600.00 3000 0

16 Pen 5 pack 250 1,250 2 0 1250 0

17 Clip 5 pack 45 225 5 45.00 225 0

18 Pencil Maped

/ black peps 5 pack 40 200 2 0 200 0

19 Sharpener 3 450 1,350 5 270.00 1350 0

20 Plastic tape

POLYSEAL 5 pack 130 650 2 0 650 0

21 Staple E'SY /

E-40 5 pack 50 250 2 0 250 0

22 Cooler water

Maxcool STH 1 7,900 7,900 5 1580.00 7900 0

23 Calculator 10 350 3,500 5 700.00 3500 0

24 Stapler 10 65 650 5 130.00 650 0

25 Rubber stamp 10 25 250 5 50.00 250 0

26 Paper Double

A A4 5 box 500 2,500 1 0 2500 0

27 Paper note 5 pack 25 125 2 0 125 0

28 Light

MEGAMAN 16 150 2,400 5 480.00 2400 0

29 Filing cabinet 10 2,800 28,000 10 2800.00 14000 14,000

30 Air condition

MITSUBISHI 2 23,900 47,800 15 3186.67 15933.35 31,867

31 CCTV

KPC252 2 1,600 3,200 10 320.00 1600 1,600

Manager

Room

1 Table 1set 8,300 8,300 10 830.00 4150 4,150

2 Filing cabinet 1 4,000 4,000 10 400.00 2000 2,000

3 Filing cabinet 1 5,000 5,000 10 500.00 2500 2,500

4 Chair PE-

621H 1 2,600 2,600 10 260.00 1300 1,300

5 Filing cabinet 1 7,500 7,500 10 750.00 3750 3,750

137

6 Telephone

Panasonic 1 900 900 8 112.50 562.5 338

7 Computer

Acer Aspire 1 17,000 17,000 10 1700.00 8500 8,500

8 Television

Samsung 1 12,000 12,000 10 1200.00 6000 6,000

9 Air condition

MITSUBISHI 1 23,900 23,900 15 1593.33 7966.65 15,933

10 CCTV

KPC252 1 1,600 1,600 10 160.00 800 800

11 Lamp BEC 1 850 850 10 85.00 425 425

12 Light

MEGAMAN 4 150 600 5 120.00 600 0

13 Bin 9 liter 1 130 130 5 26.00 130 0

14

Wireless trans

mitter 3Com

Office

1 2,700 2,700 10 270.00 1350 1,350

15 Paper note 1pack 25 25 2 0 25 0

16 Rubber stamp 1 25 25 5 5.00 25 0

Warehouse

1

Cutting electri

city HI-

LIGHT

3 8,500 25,500 10 2550.00 12750 12,750

2 fingerprint sca

nner 2 16,000 32,000 10 3200.00 16000 16,000

3 Fire Hose Set 2 8,200 16,400 10 1640.00 8200 8,200

4 RFID label

Tags 20 10,000 200,000 10 20,000 100,000 100,000

5 CCTV

KPC252 6 1,600 9,600 10 960.00 4800 4,800

6 Folk lift JRP 2 600,000 1,200,000 20 60,000.00 300000 900,000

7 Industries

Ladder 4 1,800 7,200 15 480.00 2400 4,800

8 Hand Lift

HECKER 5 11,000 55,000 15 3666.67 18333.35 36,667

9

Machine

control Micro

Fog machine

2 12,000 24,000 20 1200.00 6000 18,000

138

10 Air condition

MITSUBISHI 1 23,900 23,900 15 1593.33 7966.65 15,933

11 Telephone

Panasonic 2 890 1,780 10 178.00 890 890

12 Bin 240 liter 6 1,900 11,436 5 2,287.20 11436 0

Total 3,489,385 300,536.26 1,507,981.3 2,157,40

3.5

Table: Depreciation of 5th

Year

139

Chapter 5

Operations Cost

Service Characteristic

The Freight Forwarder service company is a service industry. Marketing techniques are

used to lure people to near, far, exotic and traditional destinations; marketing strategies are

designed to connect and resonate and spur action. Because Forwarder doesn’t have a tangible

product to sell, they have the ability to capture and connect with their target market's senses to

create the service for customer to feel like talking with family member. Importantly, forwarder

service must make the experience believable, backing up claims with solid evidence. Service is

about people and, in the service industry, focusing on the delivery of high-quality, personalized

service from individuals who fit well with their target demographic. We give the fast service

and more friendly to our customers and we also use CRM in our service to manage our

customers.

Specification, Feathers, Dimension

Our freight forwarder company is an intermediary who acts on behalf of importers,

exporters or other companies or persons, organizing the safe, efficient and cost-effective

transportation of goods. Taking into account the type of goods and the customers' delivery

requirements, freight forwarders arrange the best means of transport, using the services of

shipping lines, airlines and road freight operators.

Features of our freight forwarder service:

Investigating and planning the most appropriate route for a shipment, taking account of the

perishable or hazardous nature of the goods, cost, transit time and security;

Arranging appropriate packing, taking account of climate, terrain, weight, nature of goods

and cost, and the delivery and warehousing of goods at their final destination;

Negotiating contracts, transportation and handling costs;

140

Obtaining, checking and preparing documentation to meet customs and insurance

requirements, packing specifications, and compliance with overseas countries' regulations

and fiscal regimes;

Offering consolidation services by air, sea and road - ensuring cost-effective and secure

solutions to small shippers with insufficient cargo to require their own dedicated units;

Liaising with third parties to move goods (by road, rail, air or sea) in accordance with

customer requirements;

Arranging payment of freight and other charges or collection of payment on behalf of the

client;

Arranging air transport for urgent and high-value freight and managing the risk door to

door;

Arranging charters for large volume, out-of-gauge or project movements by air and sea;

Acting as broker in customs negotiations worldwide to guide the freight efficiently through

complex procedures;

Dealing with special arrangements for transporting delicate cargoes, such as livestock, food

and medical supplies;

Arranging courier and specialist hand-carry services;

Working closely with customers, colleagues and third parties to ensure smooth operations

to deadlines;

Maintaining communication and control through all phases of the journey, including the

production of management reports and statistical and unit cost analysis;

Acting as consultant in customs matters;

Maintaining current knowledge of relevant legislation, political situations and other factors

that could affect the movement of freight.

Specifications of Price Level

MFS is a forwarder company which both focuses on Domestic Freight and International Freight

that we operating transactions according to customers’ needs. We help our customers to choose

the best way to satisfy their transportation. Depending on different areas and different goods,

we have varied price level

141

Domestic Area

(Price List of Weight from 1kg to 20 kg)

Weight Normal Goods( Bath) Special Goods(Bath)

Less than 1 KG 40 92

1KG ~ 2 KG 55 122

2 KG ~3 KG 70 152

3 KG ~ 4 KG 85 192

4 KG ~ 5 KG 100 232

5 KG ~ 6 KG 115 282

6 KG ~ 7 KG 130 332

7 KG ~ 8 KG 145 382

8 KG ~ 9 KG 160 442

9 KG ~ 10 KG 175 502

10 KG ~ 11 KG 190 564

11 KG ~ 12 KG 205 594

12 KG ~ 13 KG 220 624

13 KG ~ 14 KG 235 664

14 KG ~ 15 KG 250 704

15 KG ~ 16 KG 265 754

16 KG ~ 17 KG 280 804

17 KG ~ 18 KG 295 854

18 KG ~ 19 KG 310 914

19 KG ~ 20 KG 325 794

The transportation period of Normal Goods will be from 3 days to 7 days.

The transportation period of Special Goods will be from 2 days to 3 days.

Table: Domestic Area48

48 http://www.bbsworldcargo.com/index.php/news-a-event/32-2011-03-27-05-48-31

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International Area

WEIGHT ZONE

1

ZONE

2

ZONE

3

ZONE

4

ZONE

5

ZONE

6

ZONE

7

ZONE

8

ZONE

9

Weight less than 10 KG.

ECONOMY BOX < 10KG 2120 1950 3410 4280 6360 4540 4900 6360 9020


ECONOMY BOX < 25 KG 2370 2180 4770 6640 8170 6720 8170 8170 12760


ECONOMY BOX < 30 KG 2960 2730 5110 7770 11800 8170 11260 11800 15320

Additional weight per KG for weight more than 30 KG. and not over than 70 KG.

Addition/KG 50 91 90 228 350 228 329 350 440

Rate per KG. If weight over than 70 KG

WEIGHT ZONE

1

ZONE

2

ZONE

3

ZONE

4

ZONE

5

ZONE

6

ZONE

7

ZONE

8

ZONE

9

Over 70 KG to 100 KG 68 148 88 291 257 301 413 384 490

Over 100 KG to 300 KG 58 134 82 289 246 285 394 366 463

Over 300 KG to 500 KG 49 124 78 278 241 278 382 355 447

Table: International Area49

49 http://smeshipping.com/index.php?option=com_content&view=article&id=25&Itemid=37


143

Zone Definition of Different countries

Destination ZONE

Transit

Times

(Days)

Destination ZONE

Transit

Times

(Days)

Destination ZONE

Transit

Times

(Days)

Andorra 5 3

Latvia 8 4

Bolivia 9 6

Argentina 9 6

Liechtenstein 5 3

Bosnia

Herzegovina 8 7

Australia 6 3

Lithuania 8 4

Brazil 9 7

Austria 5 3

Luxembourg 5 3

Bulgaria 8 6

Bahrain 8 3

Malaysia 1 3

Cambodia 3 2

Bangladesh 6 3

Mexico 7 5

Canada 7 3

Belgium 5 3

Monaco 5 3

Morocco 9 6

Chile 9 5

Norway 5 4

Myanmar 6 2

China 4 3

Oman 8 3

Namibia 9 5

Colombia 9 6

Pakistan 6 4

Netherlands 5 3

Costa Rica 9 5

Panama 9 5

New

Zealand 6 4

Croatia 8 4

Paraguay 9 5

Nicaragua 9 5

Czech Republic 5 3

Peru 9 6

Egypt 8 6

Denmark 5 4

Philippines 4 4

El Salvador 9 7

Ecuador 9 5

Poland 5 4

Estonia 8 4

Germany 5 3

Serbia 8 6

Fiji 9 5

144

Gibraltar 8 5

Singapore 1 3

Finland 5 4

Greece 5 5

Slovakia 8 4

France 5 3

Guatemala 9 6

Slovenia 8 4

Portugal 5 4

Honduras 9 6

South Africa 8 5

Qatar 8 3

Hong Kong 2 2

Spain 5 4

Romania 8 6

Hungary 5 3

Sweden 5 3

Russian

Federation 8 6

Iceland 8 3

Switzerland 5 3

San Marino 8 4

India 6 4

Syria 9 5

Saudi

Arabia 8 4

Indonesia 4 4

Taiwan 4 3

Kuwait 8 4

Iran 8 4

Tanzania 9 5

Laos 6 2

Ireland 5 4

Turkey 5 6

Venezuela 9 5

Isle of Man 9 3

Ukraine 8 4

Vietnam 3 2

Israel 9 4

United Arab Emirates 8 3

Vaticano 9 4

Italy 5 4

United Kingdom 5 3

Korea South 4 2

Japan 4 3

United States 7 3

Uruguay 9 7

Jordan 8 3

Table: Zone Definition of Different countries50

50 http://smeshipping.com/index.php?option=com_content&view=article&id=25&Itemid=37


145

For our kinds of packages, we have 3 kinds of materials: wooden case, foam case and

corrugated box. There a variety of size and dimension of different material.

Feathers of Packages

Package Type of Package Weight of

product /

variety

Size

{L*W*H}[mm]

Thickness

[mm.]

3. Wooden

Case51

50-35

100-400

Max 500

700

1500*1000*750

2000*1000*1000

2000*1000*1000

2500*1200*1200

18 – 23

18 – 23

18 – 28

21 – 32

51 http://www.pack1900.com/index.php?lay=show&ac=atricle&ld=538811970&NEype=777

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146

800

450

2500*1200*1200

2000*1000*1000

21 – 32

18 – 23

4. Foam

Case52

PF-BB

PF-JN

180x240x180

(mm.)

458 x 606 x 320

(mm.)

52 http://www.24plast.com/product228077th

http://www.24plast.com/product228077th

147

PF-l1

PF-15

PF-NPS

352 x 478 x 355

(mm.)

470x395x355

(mm.)

30 KG

3.Corrugated

Boxes53

3 layers

3 layers

18*35*25

23*31*26.7

53 http://www.scpaperpack.co.th/?gclid=CKswr4P59qwCFUZ66wodwiCpSg

http://www.scpaperpack.co.th/?gclid=CKswr4P59qwCFUZ66wodwiCpSg

148

5 layers

3 layers

5 layers

30*30*30

40*40*40

39.8*47*36.5

Table: Specification, Feathers, Dimension, Life Time

149

Features of our 3 Main Freights

Air Freight

Products traditionally transported air freight that has included mainly electronic goods,

fresh fish products and gold. Electrical and electronic goods comprised 35% of total air

shipments in 1995. Between 1991 and 1995, this broad class of products grew extremely fast,

expanding 282%. Fresh fish products shipped by air amounted to 13% of air freight exports.

Most of this was in geoducks and other mollusks. These amounted to 73% of the total fisheries

products shipped by air.54

Sea Freight

The Sea freight module provides full functionality for the Sea freight agent, covering all

job types from single and multi-container FCL shipments through to LCL consolidations. It

includes an optional interface to the Import Customs and CSP Connect modules55

. Our Sea

Freight solution provides operations staff with all of the tools they need to effectively process

surface shipments. The wide range of operational functions that are available can make a major

contribution to improving accuracy, efficiency and productivity.

Road Freight

Using road you are reasonably unlimited as to where you can travel. Using other means of

transport such as train or plane one is restricted to the existing lines and stations. One of the

best features of road freight is the ability to transport goods directly from door to door. A lorry,

van or car can pull up directly outside the delivery destination and take the goods directly

54 http://www.bcstats.gov.bc.ca/pubs/exp/exp9603.pdf 55 http://www.forwardcomputers.co.uk/import-ocean-freight/

http://www.bcstats.gov.bc.ca/pubs/exp/exp9603.pdf

http://www.forwardcomputers.co.uk/import-ocean-freight/

150

inside. Road travel is available 24 hours a day and is less susceptible to external factors

intervening and causing delays.56

Service Process

Figure: Example the operational relationship between sellers and buyers57

Starting from the contact and ordering agreement between them. The buyer may be

issued the purchase order or seller may be issued the sales contract or sales confirmation to the

buyer. The seller may be issued the preformed invoice to the buyer. The price of the goods will

include cost of goods plus the cost of the terms of incoterms including the costs of various

types such as transportation, carfare, freight, home port charges, customs, warehouses etc.

Since of international trade must be aware of the payment. So payment procedures was an

important part of doing business together which are various categories ranging cash system,

credit, Open Account or Documentary Collection and the Documentary Credit.

56 http://freight-shipping-uk.blogspot.com/2011/04/pros-and-cons-of-road-freight.html 57 http://www.itbsthai.com/knowledge_detail.php?LID=1&ID=5

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151

In the normal case, the buyer and the seller does not trust together. We will ask the

buyer to make open the LC (L / C = Letter of Credit), which is located in the Documentary

Credit, when the buyer opens L / C through the bank's service address. The Bank will announce

the opening of L / C to the banks of a network of advising bank for the bank that notified to the

bank's network yourself or seller's bank when we has received about L /. C from the Bank will

proceed with the preparation of products to match the L / C and the timely specified by the

order of L / C.

When a product that to finished ready to send. We will invoice and packing list to the

customs broker to make Customs via EDI to bring exports the goods. Then we signed up to the

invoice price, invoices packing and export goods to the customs process further or via the

Internet using XML base. When the goods through to transported for packing. Shipping lines or

agents (In the case of airlines) will issue a document called lading (B / L - Bill of Lading or

AWB - Airway bill) with the exporter. Typically, the agent will be going too received out from

a ship or an agent of the airline as an agent of the exporter and to the export to operation billing

procedures of the bank negotiation.

After the bank receives the documents required by the L / C is specified, it will be billed

by the banks open the L / C or banks, one of the L / C assigned next the charge. By the

originating bank will send all documents to the bank. When the bank receives the documents

from the bank of origin, it will prompt the user open the L / C, that is, the buyer come to all

payments to the value of L / C, then the bank will release the documents to the buyer to the

operation the ritual of customs clearance for the next release.

In a typical case as this, customs broker that is acting as agent of the DHL shippers only

it not a shipper said. The shipping line or airline will send the information of cargo manifest of

the agent to the destination country to ensure that their products any type and any person has

the right product. When receiving the invoice. Agents cruise lines or airlines will provide

product release order (D / O - Delivery Order) for the receiver or buyer to take lading (B / L -

Bill of Lading) to surrender in exchange for D / O. So that Customs Brokers and will be out of

goods.

152

Location

Since our company is located near Laem Chabang, the center of the ship transporting

the largest of the Thailand. As a result, the operation transport ships are quite highly effective,

punctual transportation of goods to customers, reducing the risk of transport etc. The result

from the growth of exports and imports of the country's higher every year. For support the

country's potential in the future. The main port of Laem Chabang, not to change the ship's

cargo or transshipment port all cargo entering the port of import and export of Thai products

directly. There is a 2-digit annual growth in the economy will grow only 7-8% off the high

growth of 9% up58

. This demonstrates the potential of economic growth is the foundation of our

company has been growing company based on the economy, by the government placed. This

shows that locations structure of the operations in each step, all relevant factors, including

DHL's business taking an active role in the operation of fast the transport. That will consistent

efficient many things we have when the company operating in the center of the industrial zone

and surrounded by a customer who wants to be affiliate with us.

Tool: Facility: Equipment:

Services provide the best practices, technologies, and methodologies to plan, design,

manage, operate and maintain reliable and efficient systems, equipment, facilities and logistics

infrastructures. Agency orders may include complete turnkey operations, maintenance and

support services, or components thereof, as needed to improve equipment and logistics

performance and reduce life-cycle costs.

Planning, designing, managing, operating and maintaining logistics systems, equipment,

facilities and logistics infrastructures are specifically including services inherent to the

performance of operations and maintenance for the support of logistics and support systems59

.

58

http://www.logisticsdigest.com/article/logistics-insight/item/6785-development-of-leamchabang-

port.html 59

https://docs.google.com/viewer?a=v&q=cache:HzC06VLwoEoJ:www.genco.com/pdfs/Scope_Work.pd

f+operation+analysis+forwarder+equipment&hl=th&gl=th&pid=bl&srcid=ADGEEShzcib_jtgb0FDarX

https://docs.google.com/viewer?a=v&q=cache:HzC06VLwoEoJ:www.genco.com/pdfs/Scope_Work.pdf+operation+analysis+forwarder+equipment&hl=th&gl=th&pid=bl&srcid=ADGEEShzcib_jtgb0FDarXSf4sQz42u5cTAqw1HWpk6b3stpwV4a8NhtAEBnbrKByjg6FjHolOSNrKafnc1JYHeLeciwAgyX1gqq56DJEcudMUZuy5v4yZYnGl82f3ZGljzQfF3ZqELi&sig=AHIEtbQoTefLGj-BiombQ_XfnieZhxTmqw

https://docs.google.com/viewer?a=v&q=cache:HzC06VLwoEoJ:www.genco.com/pdfs/Scope_Work.pdf+operation+analysis+forwarder+equipment&hl=th&gl=th&pid=bl&srcid=ADGEEShzcib_jtgb0FDarXSf4sQz42u5cTAqw1HWpk6b3stpwV4a8NhtAEBnbrKByjg6FjHolOSNrKafnc1JYHeLeciwAgyX1gqq56DJEcudMUZuy5v4yZYnGl82f3ZGljzQfF3ZqELi&sig=AHIEtbQoTefLGj-BiombQ_XfnieZhxTmqw

153

Our suite of optimization tools will find the most cost effective mode of transportation

for all shipments of our customers while honoring all service requirements. Shipping and

delivery dates, capacities such as weight and volume, dock hours, and equipment types are

some examples of the constraints we can adhere to while minimizing their overall

transportation costs. Once our analysis demonstrates our ability to reduce overall cost of our

customers we can then implement an automated production solution.

Customers who utilize our mode optimization experience improved efficiencies that

empower their transportation staff to make more cost effective decisions. We have a proven

track record of impacting our customer's bottom line through lowering costs on a daily basis60

.

The ability to establish and maintain increased oversight of facilities in the operating

systems is likely to be highly dependent on the continued availability of resources and funding.

The effectiveness of this oversight will also likely be highly dependent on the adequacy of

available tools and procedures to track needed corrective actions and ensure compliance among

carriers and freight forwarders61

.

Alternative for our customers to providing on website offices to be clearing and

forwarding agents is for them to be accessible on our service. Facilities cover all steps of

operation by designed since receive consignment from sender to destination or called "Door-to-

Sf4sQz42u5cTAqw1HWpk6b3stpwV4a8NhtAEBnbrKByjg6FjHolOSNrKafnc1JYHeLeciwAgyX1gqq

56DJEcudMUZuy5v4yZYnGl82f3ZGljzQfF3ZqELi&sig=AHIEtbQoTefLGj-BiombQ_XfnieZhxTmqw

60 http://www.werner.com/content/solutions/technological_advantages/analysis_services.cfm

61 https://docs.google.com/viewer?a=v&q=cache:n4MMeK0nTHkJ:www.fas.org/sgp/crs/homesec/RL3

2022.pdf+operation+analysis+facility+forwarder&hl=th&gl=th&pid=bl&srcid=ADGEESjWiCiaNQ1x

UTMU0TA67qI0-

qyBVNYRpF2oV_RUCH_0zuCSZbhQjodEvmIt2WcqygS96LpQwjT5X8YrF5QtjjigAxhX2p-57S5Q-

SjaVZOD_vf1QXzvnRTjgWW4R4IvAVtIi_tj&sig=AHIEtbQnqD6PATZP0zCljy6lzDNVdwVsnA

http://www.werner.com/content/solutions/technological_advantages/analysis_services.cfm

https://docs.google.com/viewer?a=v&q=cache:n4MMeK0nTHkJ:www.fas.org/sgp/crs/homesec/RL32022.pdf+operation+analysis+facility+forwarder&hl=th&gl=th&pid=bl&srcid=ADGEESjWiCiaNQ1xUTMU0TA67qI0-qyBVNYRpF2oV_RUCH_0zuCSZbhQjodEvmIt2WcqygS96LpQwjT5X8YrF5QtjjigAxhX2p-57S5Q-SjaVZOD_vf1QXzvnRTjgWW4R4IvAVtIi_tj&sig=AHIEtbQnqD6PATZP0zCljy6lzDNVdwVsnA





154

Door Service". The customers can select types of packing and size of container which depend

on amount of products by seeing that the customers can identify to use full-container load

(FCLs) or less than container loads (LCLs).

Logistics Management

Our company is controls and operates to manage logistics from sender to receiver, and

storage services to customers in safety places to protect product doesn’t have damaged and we

operated the logistic to receiver as soon, our company to give customer service, efficiency and

effectiveness of processes that take into account the needs and satisfaction of our customers is

important to work with DHL. Our company uses other technology in organization and logistics

process such as The Radio Frequency Information Device (RFID) and FWD system to manage

the company, so our customer can trust in different aspects of our performance.

DHL is a third – party logistic company. In other words, it is available, 24/7, for a

shipper that needs to get a package from point A to point B at any time of the day or night. The

third-party logistics provider is an independent entity that doesn’t belong to any one company

but rather, charges per service. Transportation and logistics is very important to this company

with the large yellow trucks, as this company is responsible for ensuring that the package or

product get from its origination point to its destination. DHL is also working with scientists on

nanotechnology in an effort to develop anti-counterfeiting solutions (Stanton, 2008). This adds

to the Radio Frequency Information Device (RFID), which is what many logistical companies

are currently relying on to keep track of package62

.

Facility Management

MFS provides warehousing and logistical support, including the ordering process for

different kinds of goods. We utilize the client's forecasts and consumption patterns to optimize

system availability and ensure that process media are always available. Based on customer

forecast, we are able to support all logistical activities, to plan and execute optimized

62 http://www.docstoc.com/docs/9480293/TRANSPORTATION-AND-LOGISTICS-MANAGEMENT-AT-DHL

http://www.docstoc.com/docs/9480293/TRANSPORTATION-AND-LOGISTICS-MANAGEMENT-AT-DHL

155

warehouse operations. We can manage the financing and construction of the warehouse and act

as operator in accordance with national and local environmental regulations.

According to the nature of our goods, our warehouse separates the different room zone

for store varied goods: wood, clothes and refrigerated room Zone63

. We have forklift and hand

lift to move the huge and heavy goods. Every useful facility will be helpful for the flexibility of

warehouse operation. We locate at Laem Chabang Port, so our warehouse’s location towards to

the main revenue which connects with port and it owns a large area for parking trucks. To

ensure the facility operates normally, we will have maintenances in regular periods. To

maintain the normal order in our working area, the securities will be recruited to take related

responsibilities.

63 http://www.meachersglobal.com/services/freight-forwarding-services/

http://www.meachersglobal.com/services/freight-forwarding-services/

156

Raw material

Raw material

Types size{L*W*H}[mm] Price/unit Total

Wooden

A 1500*1000*750 320 320

B 2000*1000*1000 364 364

C 2000*1000*1000 408 408

D 2500*1200*1200 452 452

E 2500*1200*1200 496 496

F 2000*1000*1000 540 540

Foam

A 180*240*180 40 40

B 458 * 606 * 320 80 80

C 352 * 478 * 355 90 90

D 470*395*355 70 70

E 30 KG 145 145

Boxes

A 18*35*25 4.4 4.4

B 23*31*26.7 7.5 7.5

C 30*30*30 15 15

D 40*40*40 22 22

E 39.8*47*36.5 25.5 25.5

Total 3,079.40

Table: Raw material

157

Overhead Cost

Electricity

The company use high voltage meter 69 KVA 64

The cost of connector (more than 200 amps) 30,000 baht

The cost of verify internal 20,000 baht

Insurance of transformer 400 baht per KVA 27,600 baht

Total 77600 baht

Water

Type of Commerce, Government Agency, State Enterprise and Industry65

The first installation:

Size of water meters

in diameter (inches)

The cost of the

installation fee.

Excluding value added

tax (baht)

The cost of insurance for

use of permanent water

Total

(baht)

1 1/2 12,000 3,000 15,000

64 http://www.pea.co.th/th/services/services_fee_rates.htm

65 http://www.mwa.co.th/2010/ewt/mwa_internet/ewt_news.php?nid=299&filename=index

http://www.pea.co.th/th/services/services_fee_rates.htm

http://www.mwa.co.th/2010/ewt/mwa_internet/ewt_news.php?nid=299&filename=index

158

Telephone &Fax

Telephone expense 1,500 baht/month

Fax *(3 baht/time) 500 baht/month

Total 2,000 baht/month

For total utility expense is approximately 2,000 baht per month

Internet66

Internet expense (include VAT) 590 baht/month

Maintenance costs (include VAT) 107 baht/month

For total utility expense is approximately 697 baht per month

66 http://www.tot.co.th/index.php?option=com_linkcontent&categoryid=95&Itemid=65&lang=th

http://www.tot.co.th/index.php?option=com_linkcontent&categoryid=95&Itemid=65&lang=th

159

Chapter 6

Administration Cost

Salary

Max Freight Service Forwarder Company is the company which registers to be a justice

person likes company limited. Limited company is cooperation between shareholders who

enjoys limited liability. So, Max Freight Service Forwarder Company is justice person as

company limited that company have to pay for income tax.

For company, there are 8 partnerships in the company as following:

1. Kritika Sachaphibulkij (General Manager)

2. Sasithorn Saengmanee (Operating Manager)

3. Chompoonoot Khuankaew (Production Manager)

4. Pipat Thawonwijit (Marketing Manager)

5. Jutarat Setar (Human Resource Manager)

6. Rachakorn Sonthiphumath (Accounting Manager)

7. Yue Zhao (Financial Manager)

8. Kanpicha Channgam (Plant Manager)

All partnerships agree Ms. Kritika Sachaphibulkij to be General Manager in Max

Freight Service Forwarder Company Limited who is representative of the company to register

in company limited, Chonburi and have authority to sign the name as the Max Freight Service

Forwarde company when do the business with others, and can check any documents all

business of the company.

160

Figure: Partnerships of Max Freight Service Forwarder Company

Position Person Salary Total(THB)

General Manager 1 25,000 25,000

Operating Manager 1 18,000 18,000

Production Manager 1 15,000 15,000

Marketing Manager 1 15,000 15,000

Human Resource

Manager 1 15,000 15,000

Accounting Manager 1 15,000 15,000

Financial Manager 1 15,000 15,000

Plant Manager 1 15,000 15,000

Total salary

expense/month 8 133,000

Table: Salary

161

Responsibility

General Manager: 67

General Manager Job description mainly includes managing and coordinating work of

process managers working under the GM. The duties also comprise devising and planning of

company policies, and discussing them with the top management for final approval. A general

manager develops guidelines of operation for certain processes, which are directly under his

authority. He has to devise and set up an annual budget and fiscal plan, and present it before the

board of directors.

A general manager can even play an important part in recruiting and training process

managers under him. Imparting training to new practice managers regarding how to increase

employee performance is also one of the most important responsibilities of general manager.

The GM has to make sure that all departments and practices are working as anticipated by the

company's annual plan.

Management Accounting:68

Responsibility accounting involves the creation of responsibility centers. A

responsibility centre may be defined as an organization unit for whose performance a manager

is held accountable. Responsibility accounting enables accountability for financial results and

outcomes to be allocated to individuals throughout the organization. The objective is to

measure the result of each responsibility center. It involves accumulating costs and revenues for

each responsibility centre so that deviation from performance target (typically the budget) can

be attributed to the individual who is accountable for the responsibility centre.

67 http://www.buzzle.com/articles/general-manager-responsibilities.html

68 http://hafeezrm.hubpages.com/hub/Management-Accounting-Responsibility-Accounting

http://www.buzzle.com/articles/general-manager-responsibilities.html

http://hafeezrm.hubpages.com/hub/Management-Accounting-Responsibility-Accounting

162

Financial Manager:69

An important role in mergers and consolidations and in global expansion and related

financial. These areas require extensive, specialized knowledge to reduce risks and maximize

profit. Financial managers increasingly are hired on a temporary basis to advise senior

managers on these and other matters. In fact, some small firms contract out all their accounting

and financial functions to companies that provide such services. The role of the financial

manager, particularly in business, is changing in response to technological advances that have

significantly reduced the amount of time it takes to produce financial reports. Technological

improvements have made it easier to produce financial reports, and, as a consequence, financial

managers now perform more data analysis that allows them to offer senior managers profit-

maximizing ideas. They often work on teams, acting as business advisors to top management.

Marketing Manager: 70

The responsible for creating and monitoring strategies to sell or educate about products or

services and marketer may work with product development managers and advertising

managers. They may work within all industries or specialize in legal or technical areas.

Marketing managers may analyze sections of a marketing plan for clients to gain the best

marketing share. The plan should show marketing goals with steps for completing the goals for

an organization.

69 http://www.bls.gov/oco/ocos010.htm

70 http://www.ehow.com/list_6417472_marketing-manager-duties-responsibilities.html

http://www.bls.gov/oco/ocos010.htm

http://www.ehow.com/list_6417472_marketing-manager-duties-responsibilities.html

163

Human Resource Manager:71

Responsibility for ensuring the maintenance, regular review and updating of this policy

and Revisions, amendments or alterations to the policy will be agreed in consultation, where

applicable with the recognized Trade Unions and the appropriate College Committee.

Operating Manager:72

Responsible for the complete operation in the company and accountable for the

performance and operation manager should have complete control over the operation he

performs and he is accountable and must report mostly to the president of the company.

Production:73

Undertakes the task of monitoring and ensuring smooth functioning of the production

process, preparing production plans after making detail surveys and researching and ensuring

consistent supply of raw materials and essentials for high-speed production of goods and

Production manager responsibilities can vary a bit from one organization to another

Plant manager:74

A plant manager is the sole person responsible for the oversight and management of all

operational and maintenance activities within a manufacturing facility. A senior-level role, a

plant manager typically reports to the head of the manufacturing division.

71 http://www.bbk.ac.uk/hr/policies_services/Recruitment/responsibility

72 http://www.jobawareness.com/operation-manager.asp

73 http://www.buzzle.com/articles/production-manager-responsibilities.html 74 http://www.ehow.com/facts_5770004_duties-plant-manager_.html#ixzz1kqRG3awh

http://www.jobawareness.com/operation-manager.asp

http://www.bbk.ac.uk/hr/policies_services/Recruitment/responsibility

http://www.jobawareness.com/operation-manager.asp

http://www.buzzle.com/articles/production-manager-responsibilities.html

http://www.ehow.com/facts_5770004_duties-plant-manager_.html#ixzz1kqRG3awh

164

Tool, Office supplies and Equipment

Zone No Item Units Price Per

Unit (Baht)

Total

Cost

Equipment

1 Electricity system 62 120 7,440

2 Water system 284 42 11,928

Office

Restroom

1 Flush toilet NASCO 5 1,600 8,000

2 Toilet Hose American standard 5 170 850

3 Navel basin American standard 2 700 1400

4 Faucet American standard 2 350 700

5 Chamber pot COTTO 4 900 3600

6 Mirror Plastic ABS 2 100 200

7 Bin 9 liter 2 130 260

8 Ventilators TOSHIBA VF-20P

8” 2 850 1,700

9

Light Blue MEGAMAN

8 150 1,200

10 Toilet tissue box Stainless 5 100 500

11 Foot scraper Cotton 80X50 cm 2 500 1,000

165


Unit (Baht)

Total

Cost

Office

Meeting

Room

1 conference table 12 sit 1 set 15,000 15,000

2 Projector BenQ Projector DLP-

MS500 1 11,600 11,600

3 Projector Screen PS-120V

244x183 cm. 1 5,000 5,000

4 Light MEGAMAN 4 150 600

5 Air condition MITSUBISHI

MSZ-SGE09VA 1 23,900 23,900

6

Computer

Acer Aspire G5910-

254G1T00MGi

1 17,000 17,000

Living

Room

1 Sofa OPIA set 1 8,800 8,800

2 CCTV KPC252 1 1,600 1,600

3 Air Condition MITSUBISHI

MSZ-SGE09VA 1 23,900 23,900

4 Television Samsung LCD TV

32” 1 12,000 12,000

Kitchen

Room

1 Electric kettle. MISUSITA KP-

25S 2.5 1 590 590

2 Refrigerator SHARP SJ-N15S

,5.2 1 5,400 5,400

3 Microwave ELECTROLUX 1 4,500 4,500

4 Sink clean Diamond DMB 100A 1 1,000 1,000

5 Ventilators TOSHIBA VF-20P

8” 1 850 850


7 Faucet American standard 1 350 350

166


Unit (Baht)

Total

Cost

Working

Room

1 Table 120x60x75 cm 10 2,500 25,000

2 Chair 54(W) x 48(D) x 90(H)

cm. 10 900 9,000

3 Computer PC Acer Aspire

M3970-212G1T00Mi/9003 10 17,000 170,000

4 Wireless transmitter 3Com

Office Connect ADSL 2 2,700 5,400

5 Telephone Panasonic KX-

T2371MX 10 900 9,000

6 Fax phone PANASONIC KX-

FL422CX 2 7,800 15,600

7 Copy machine 1 3,500 3,500

8 Partition 27 2,000 54,000

9 Cutting electricity HI-LIGHT 1 8,500 8,500

10 Fire Extinguisher 1 650 650

11 Drawer 5 ช้ัน 10 540 5,400

12 Glue UHU/ STIC 1 pack 300 300

13 Cutter OKA cutter 10 30 300

14 Scissors Elephant 8” 10 50 500

15 File Elephant Econ File 50 File 60 3,000

16 Pen 5 pack 250 1,250

17 Clip 5 pack 45 225

18 Pencil Maped / black peps 5 pack 40 200

19 Sharpener 3 450 1,350

20 Plastic tape POLYSEAL 5 pack 130 650

21 Staple E'SY / E-40 5 pack 50 250

22 Cooler water Maxcool STH 1 7,900 7,900

23 Calculator 10 350 3,500

24 Stapler 10 65 650

25 Rubber stamp 10 25 250

26 Paper Double A A4 5 box 500 2,500

27 Paper note 5 pack 25 125

28 Light MEGAMAN 16 150 2,400

29 Filing cabinet 10 2,800 28,000

30 Air condition MITSUBISHI 2 23,900 47,800

31 CCTV KPC252 2 1,600 3,200

167


Unit (Baht)

Total

Cost

Manager

Room

1 Table 1set 8,300 8,300

2 Filing cabinet 1 4,000 4,000


4 Chair PE-621H 1 2,600 2,600


6 Telephone Panasonic 1 900 900

7 Computer Acer Aspire 1 17,000 17,000

8 Television Samsung 1 12,000 12,000


10 CCTV KPC252 1 1,600 1,600

11 Lamp BEC 1 850 850


13 Bin 9 liter 1 130 130

14 Wireless transmitter 3Com

Office 1 2,700 2,700

15 Paper note 1pack 25 25

16 Rubber stamp 1 25 25

Warehou

se

1 Cutting electricity HI-LIGHT 3 8,500 25,500

2 fingerprint scanner 2 16,000 32,000

3 Fire Hose Set 2 8,200 16,400

4 RFID label Tags 20 10,000 200,000

5 CCTV KPC252 6 1,600 9,600

6 Folk lift JRP 2 600,000 1,200,000

168

Table: Tool, Office supplies and Equipment75

Water expense

Rate of water supply in Chonburi (January 2555)

Period

water

(CM3. /

month)

Unit

1.The housing 2. Government and small

business

3. State of enterprises/ large

business

Price Value Total Price Value Total Price Value Total

Minimum

Rate

Minimum 50 Bath/Mouth

(4 CM3.)

Minimum 150 Bath / Month (10

CM3.)


CM3.)

0 - 10 10 11.82 118.20 118.20 14.12 141.20 141.20 15.21 152.10 152.10

11 - 20 10 13.53 135.30 253.50 16.92 169.20 310.40 18.26 182.60 334.70

21 - 30 10 15.92 159.20 412.70 18.12 181.20 491.60 21.45 214.50 549.20

75 www.officedepot.co.th

7 Industries Ladder 4 1,800 7,200

8 Hand Lift HECKER 5 11,000 55,000

9 Machine control Micro Fog

machine 2 12,000 24,000


11 Telephone Panasonic 2 890 1,780

12 Bin 240 liter 6 1,900 11,436

Total 2,275,514

http://www.officedepot.co.th/

169

Rate of water supply in Chonburi (January 2555)

Period

water

(CM3. /

month)

Unit

1.The housing 2. Government and small

business

3. State of enterprises/ large

business

Price Value Total Price Value Total Price Value Total

Minimum

Rate

Minimum 50 Bath/Mouth

(4 CM3.)


CM3.)


CM3.)

31 - 50 20 17.96 359.20 771.90 19.12 382.40 874.00 24.45 489.00 1,038.20

51 - 80 30 18.99 569.70 1,341.60 19.64 589.20 1,463.20 26.55 796.50 1,834.70

81 - 100 20 19.43 388.60 1,730.20 19.91 398.20 1,861.40 26.80 536.00 2,370.70

101 - 300 200 20.64 4,128.00 5,989.40 27.05 5,410.00 7,780.70

301 -1,000 700 20.74 14,518.00 20,507.40 27.30 19,110.00 26,890.70

1001 - 2,000 1,000 20.84 20,840.00 41,347.40 27.14 27,140.00 54,030.70

2,001 - 3,000 1,000 20.96 20,960.00 62,307.40 26.99 26,990.00 81,020.70

> 3,000 21.07 26.83

*Remark: User water supply type 1 if any month use water ore than 100CM3./month The rate of

water supply be equal to user type 2 at time (January 2555)76

76 http://www.pwa.co.th/service/tariff_rate.html

http://www.pwa.co.th/service/tariff_rate.html

170

Electricity expense:

The enterprise has use electricity in business, industrial, state enterprise, and

international business have demand of average electricity higher in 15 minutes since 30-999

KW, and have average quantity 3 months lower than 250,000 per month by 1 electricity

meter.77

Normal Rate:

Month rate demand

for electricity

(Bath/KW)

Energy Charge

(Bath/Unit)

Voltage more than 69

KV.

175.70 1.6660

Voltage 12-24 KV. 196.26 1.7034

Voltage lower than

12KV.

221.50 1.7314

Table: Normal Rate

Time of Use Tariff: TOU Tariff:

Month rate demand for electricity

(Bath/KW)

Energy Charge

(Bath/Unit)

Service

charge

1* 1* 2*

Voltage more than 69

KV.

74.14 2.6136 1.1726 228.17

Voltage 12-24 KV. 132.93 2.6950 1.1914 228.17

Voltage lower than

12KV.

210.00 2.8408 1.2246 228.17

Table: TOU Tariff

77 http://www.eppo.go.th/power/pw-Rate-MEA.html

http://www.eppo.go.th/power/pw-Rate-MEA.html

171

Internet and telephone expense

Internet expense (include VAT) 590 baht/month78

Maintenance costs (include VAT) 107 baht/month

Telephone expense 1,500 baht/month

Fax *(3 baht/time) 500 baht/month

Total 2,697 baht/month

For total utility expense is approximately 2,697 baht per month

Fire insurance

The factory is the valuable of our business and it is more important. The factory can

provide economic benefit for us and our employees, so we should be in a safe at all times.

However, our factory is more strength, durability or safety but events that is unexpected may

happens to our factory is always such as accident, gas, fire, theft, etc.

Fire insurance is a type of non-life insurance that covers the risk of losses or damages to

insured property in case of fire, lightning strikes or gas explosions. Which the fire insurance

have two type include construction (excluding the construction foundation) and Property

contained within the building such as furniture, ornaments, utensils and electrical equipment

including musical and audio equipment, kitchenware, clothes and various other assets.

When compared to other types of cover, the premiums for fire insurance for residences

can seem quite low but you have to take into account how expansive the coverage can be. From

many reason we choose to pay fire insurance expense because it suits for our factory. So, we

have fire insurance expense 2,500 baht per year.79

78 http://www.tot.co.th/index.php?option=com_linkcontent&categoryid=95&Itemid=65&lang=th

79 http://www.dhipaya.co.th/insurance/fire-insurance.asp?idMenu=25

http://www.tot.co.th/index.php?option=com_linkcontent&categoryid=95&Itemid=65&lang=th

http://www.dhipaya.co.th/insurance/fire-insurance.asp?idMenu=25

172

Truck Insurance

The company pay trucks insurance expense 1,699 baht per year for Muang Thai

insurance company and the below show the detail of truck insurance. Weight of truck is not

more than 3 ton and use for logistics and transportation in the business. The net premiums

1,760.00 baht/year

Fee 8.00 baht/year

Tax 123.76 baht/year

Total 1,699.00 baht/year

Social security Insurance Expense

The condition of payment social security insurance expense

Labor (employees) and employers in the social security system required to pay

contributions to social security in the current rate is 5 percent of salary, and overtime payment

OT (Over Time: OT) that workers receive do not be calculated with the money to pay the social

security fund.80

80 http://www.sso.go.th/wpr/category.jsp?lang=th&cat=109

173

We can calculate social insurance for monthly of each position as following:

Position Person Salary Total(THB) Social insurance

rate

Total Social

insurance

expense

General Manager 1 25,000 25,000 5% 1,250

Operating Manager 1 18,000 18,000 5% 900

Production Manager 1 15,000 15,000 5% 750

Marketing Manager 1 15,000 15,000 5% 750

Human Resource

Manager 1 15,000 15,000 5% 750

Accounting Manager 1 15,000 15,000 5% 750

Financial Manager 1 15,000 15,000 5% 750

Plant Manager 1 15,000 15,000 5% 750

Table: Social security Insurance Expense

174

Technical Feasibility Conclusion

Facilities and Administration Costs are those costs also referred to as overhead,

overhead costs, or administrative costs. This is actual costs incurred to conduct the normal

business activities of an institution and are not readily identified with or directly charged to a

specific the normal activities of the business, i.e. those general Facilities and Administration

Cost expenses include:

General Administration

Operation and Maintenance

Building and Equipment Depreciation

Insurance

Salary

All of these administration costs. Demonstrate obvious cost information that reflects the

reliability of the company. The most important thing is that the administration is

straightforward, just like our service.

Administrative expenses rate for five year as follows:

Administrative Expenses for year 1 100%





175

Administrative Expenses

Year 1

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Employee

salary:

General

Manager

25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 25,000.00 300,000.00

Operation

Manager 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 216,000.00

Production

Manager 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 180,000.00

Marketing

Manager 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 180,000.00

Human

Resource

Manager

15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 180,000.00

Accounting

Manager

15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 180,000.00

Financial

Manager

15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 180,000.00

Plant Manager

15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 180,000.00

Office Supplies 11,730.00 0 0 0 0 0 0 0 0 0 0 0 11,730.00

Office

Equipment 605,200.00 0 0 0 0 0 0 0 0 0 0 0 605,200.00

Water expense

2,081.36 2,081.36 2,081.36 2,081.36 2,081.36 2,081.36 2,081.36 2,081.36 2,081.36 2,081.36 2,081.36 2,081.36 24,976.32

Electricity

expense

13,296.17 13,296.17 13,296.17 13,296.17 13,296.17 13,296.17 13,296.17 13,296.17 13,296.17 13,296.17 13,296.17 13,296.17 159,554.04

Internet and

telephone

expense

2,697.00 2,697.00 2,697.00 2,697.00 2,697.00 2,697.00 2,697.00 2,697.00 2,697.00 2,697.00 2,697.00 2,697.00 32,364.00

Fire insurance

expense 2,500.00 0 0 0 0 0 0 0 0 0 0 0 2,500.00

Trucks

insurance

expense

1,699.00 0 0 0 0 0 0 0 0 0 0 0 1,699.00

Social security

insurance

expense

6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 6,650.00 79,800.00

Administrative

Depreciation

40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 484,910.64

Total

Administrative

expenses

819,262.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 2,998,734.00

Table: Administrative expenses rate Year 1

176


Year 2


Employee

salary:

General

Manager 26,250.00 26,250.00 26,250.00 26,250.00 26,250.00 26,250.00 26,250.00 26,250.00 26,250.00 26,250.00 26,250.00 26,250.00 315,000.00

Operation

Manager 18,900.00 18,900.00 18,900.00 18,900.00 18,900.00 18,900.00 18,900.00 18,900.00 18,900.00 18,900.00 18,900.00 18,900.00 226,800.00

Production

Manager

15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 189,000.00

Marketing

Manager

15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 189,000.00

Human

Resource

Manager

15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 189,000.00

Accounting

Manager 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 189,000.00

Financial

Manager 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 189,000.00

Plant

Manager

15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 15,750.00 189,000.00

Office Supplies 12,316.50 0 0 0 0 0 0 0 0 0 0 0 12,316.50

Office

Equipment 635,460.00 0 0 0 0 0 0 0 0 0 0 0 635,460.00

Water expense 2,185.43 2,185.43 2,185.43 2,185.43 2,185.43 2,185.43 2,185.43 2,185.43 2,185.43 2,185.43 2,185.43 2,185.43 26,225.14

Electricity

expense 13,960.98 13,960.98 13,960.98 13,960.98 13,960.98 13,960.98 13,960.98 13,960.98 13,960.98 13,960.98 13,960.98 13,960.98 167,531.74

Internet and

telephone

expense

2,831.85 2,831.85 2,831.85 2,831.85 2,831.85 2,831.85 2,831.85 2,831.85 2,831.85 2,831.85 2,831.85 2,831.85 33,982.20

Fire insurance

expense 2,625.00 0 0 0 0 0 0 0 0 0 0 0 2,625.00

Trucks

insurance

expense

1,783.95 0 0 0 0 0 0 0 0 0 0 0 1,783.95

Social security

insurance

expense

6,982.50 6,982.50 6,982.50 6,982.50 6,982.50 6,982.50 6,982.50 6,982.50 6,982.50 6,982.50 6,982.50 6,982.50 83,790.00

Administrative

Depreciation

42,429.68 42,429.68 42,429.68 42,429.68 42,429.68 42,429.68 42,429.68 42,429.68 42,429.68 42,429.68 42,429.68 42,429.68 509,156.17

Total

Administrative

expenses

262,389.23 208,040.44 208,040.44 208,040.44 208,040.44 208,040.44 208,040.44 208,040.44 208,040.44 208,040.44 208,040.44 208,040.44 3,148,670.70


177


Year 3


Employee

salary:

General

Manager

28,875.00 28,875.00 28,875.00 28,875.00 28,875.00 28,875.00 28,875.00 28,875.00 28,875.00 28,875.00 28,875.00 28,875.00 346,500.00

Operation

Manager

20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 249,480.00

Production

Manager 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 207,900.00

Marketing

Manager 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 207,900.00

Human

Resource

Manager

17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 207,900.00

Accounting

Manager

17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 207,900.00

Financial

Manager

17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 207,900.00

Plant

Manager

17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 17,325.00 207,900.00

Office Supplies 13,548.15 0 0 0 0 0 0 0 0 0 0 0 13,548.15

Office

Equipment

699,006.00 0 0 0 0 0 0 0 0 0 0 0 699,006.00

Water expense 2,403.97 2,403.97 2,403.97 2,403.97 2,403.97 2,403.97 2,403.97 2,403.97 2,403.97 2,403.97 2,403.97 2,403.97 28,847.65

Electricity

expense

15,357.08 15,357.08 15,357.08 15,357.08 15,357.08 15,357.08 15,357.08 15,357.08 15,357.08 15,357.08 15,357.08 15,357.08 184,284.92

Internet and

telephone

expense

3,115.04 3,115.04 3,115.04 3,115.04 3,115.04 3,115.04 3,115.04 3,115.04 3,115.04 3,115.04 3,115.04 3,115.04 37,380.42

Fire insurance

expense 2,887.50 0 0 0 0 0 0 0 0 0 0 0 2,887.50

Trucks

insurance

expense

1,962.35 0 0 0 0 0 0 0 0 0 0 0 1,962.35

Social security

insurance

expense

7,680.75 7,680.75 7,680.75 7,680.75 7,680.75 7,680.75 7,680.75 7,680.75 7,680.75 7,680.75 7,680.75 7,680.75 92,169.00

Administrative

Depreciation

46,672.65 46,672.65 46,672.65 46,672.65 46,672.65 46,672.65 46,672.65 46,672.65 46,672.65 46,672.65 46,672.65 46,672.65 560,071.79

Total

Administrative

expenses

946,248.48 228,844.48 228,844.48 228,844.48 228,844.48 228,844.48 228,844.48 228,844.48 228,844.48 228,844.48 228,844.48 228,844.48 3,463,537.77


178


Year 4


Employee

salary:

General

Manager 34,650.00 34,650.00 34,650.00 34,650.00 34,650.00 34,650.00 34,650.00 34,650.00 34,650.00 34,650.00 34,650.00 34,650.00 415,800.00

Operation

Manager 24,948.00 24,948.00 24,948.00 24,948.00 24,948.00 24,948.00 24,948.00 24,948.00 24,948.00 24,948.00 24,948.00 24,948.00 299,376.00

Production

Manager 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 249,480.00

Marketing

Manager 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 249,480.00

Human

Resource

Manager

20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 249,480.00

Accounting

Manager 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 249,480.00

Financial

Manager 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 249,480.00

Plant Manager 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 20,790.00 249,480.00

Office Supplies 16,257.78 0 0 0 0 0 0 0 0 0 0 0 16,257.78

Office

Equipment 838,807.20 0 0 0 0 0 0 0 0 0 0 0 838,807.20

Water expense 2,884.76 2,884.76 2,884.76 2,884.76 2,884.76 2,884.76 2,884.76 2,884.76 2,884.76 2,884.76 2,884.76 2,884.76 34,617.18

Electricity

expense 18,428.49 18,428.49 18,428.49 18,428.49 18,428.49 18,428.49 18,428.49 18,428.49 18,428.49 18,428.49 18,428.49 18,428.49 221,141.90

Internet and

telephone

expense

3,738.04 3,738.04 3,738.04 3,738.04 3,738.04 3,738.04 3,738.04 3,738.04 3,738.04 3,738.04 3,738.04 3,738.04 44,856.50

Fire insurance

expense 3,465.00 0 0 0 0 0 0 0 0 0 0 0 3,465.00

Trucks

insurance

expense

2,354.81 0 0 0 0 0 0 0 0 0 0 0 2,354.81

Social security

insurance

expense

9,216.90 9,216.90 9,216.90 9,216.90 9,216.90 9,216.90 9,216.90 9,216.90 9,216.90 9,216.90 9,216.90 9,216.90 110,602.80

Administrative

Depreciation 56,007.18 56,007.18 56,007.18 56,007.18 56,007.18 56,007.18 56,007.18 56,007.18 56,007.18 56,007.18 56,007.18 56,007.18 672,086.15

Total

Administrative

expenses

1,135,498.17 274,613.38 274,613.38 274,613.38 274,613.38 274,613.38 274,613.38 274,613.38 274,613.38 274,613.38 274,613.38 274,613.38 4,156,245.32


179


Year 5


Employee

salary:

General

Manager 45,045.00 45,045.00 45,045.00 45,045.00 45,045.00 45,045.00 45,045.00 45,045.00 45,045.00 45,045.00 45,045.00 45,045.00 540,540.00

Operation

Manager 32,432.40 32,432.40 32,432.40 32,432.40 32,432.40 32,432.40 32,432.40 32,432.40 32,432.40 32,432.40 32,432.40 32,432.40 389,188.80

Production

Manager 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 324,324.00

Marketing

Manager 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 324,324.00

Human

Resource

Manager

27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 324,324.00

Accounting

Manager 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 324,324.00

Financial

Manager 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 324,324.00

Plant Manager 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 27,027.00 324,324.00

Office Supplies 21,135.11 0 0 0 0 0 0 0 0 0 0 0 21,135.11

Office

Equipment 1,090,449.36 0 0 0 0 0 0 0 0 0 0 0 1,090,449.36

Water expense 3,750.19 3,750.19 3,750.19 3,750.19 3,750.19 3,750.19 3,750.19 3,750.19 3,750.19 3,750.19 3,750.19 3,750.19 45,002.33

Electricity

expense 23,957.04 23,957.04 23,957.04 23,957.04 23,957.04 23,957.04 23,957.04 23,957.04 23,957.04 23,957.04 23,957.04 23,957.04 287,484.47

Internet and

telephone

expense

4,859.45 4,859.45 4,859.45 4,859.45 4,859.45 4,859.45 4,859.45 4,859.45 4,859.45 4,859.45 4,859.45 4,859.45 58,313.46

Fire insurance

expense 4,504.50 0 0 0 0 0 0 0 0 0 0 0 4,504.50

Trucks

insurance

expense

3,061.26 0 0 0 0 0 0 0 0 0 0 0 3,061.26

Social security

insurance

expense

11,981.97 11,981.97 11,981.97 11,981.97 11,981.97 11,981.97 11,981.97 11,981.97 11,981.97 11,981.97 11,981.97 11,981.97 143,783.64

Administrative

Depreciation 72,809.33 72,809.33 72,809.33 72,809.33 72,809.33 72,809.33 72,809.33 72,809.33 72,809.33 72,809.33 72,809.33 72,809.33 873,711.99

Total

Administrative

expenses

1,476,147.62 356,997.39 356,997.39 356,997.39 356,997.39 356,997.39 356,997.39 356,997.39 356,997.39 356,997.39 356,997.39 356,997.39 5,403,118.92


180

Chapter 7

Financial Management


Income Statement

For the year ended December, 31 2011

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Total

Revenue

Sales 1100000 1100000 1111000 1113000 1128000 1129000 1136000 1132000 1136000 1140000 1139000 1139000 13503000

Costs of goods

sold 536000 536000 541000 541000 548000 548000 552000 550000 552000 553000 553000 553000 6563000

Gross Income 564000 564000 570000 572000 580000 581000 584000 582000 584000 587000 586000 586000 6940000

Operating

Expense

Marketing

Exense 14,550 14,550 14,550 14,550 14,550 14,550 14,550 14,550 14,550 14,550 14,550 14,550 174,600

Administrative

Expense 819,262.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 2,998,734.00

Raw Materials 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 36952.8

Direct Labor

Cost 154000 154000 154000 154000 154000 154000 154000 154000 154000 154000 154000 154000 1848000

Overhead 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000

Depreciation 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 40,409.22 484,910.64

Total

Operating

Expense

1,032,301 411,172 411,172 411,172 411,172 411,172 411,172 411,172 411,172 411,172 411,172 411,172 5,555,197

Income Before

Interest and

Tax

-468,301 152,828 158,828 160,828 168,828 169,828 172,828 170,828 172,828 175,828 174,828 174,828 1,384,803

Interest

Expense 0 0 0 0 0 0 0 0 0 0 0 0 0

Taxs(30%) 0 45848.3 47648.3 48248.3 50648.3 50948.3 51848.3 51248.3 51848.3 52748.3 52448.3 52448.3 415440.8

Net Inocme for

the Year -468,301 106,979 111,179 112,579 118,179 118,879 120,979 119,579 120,979 123,079 122,379 122,379 969,362

Retained

Earnings -468,301 -361,322 -250,142 -137,563 -19,384 99,496 220,475 340,054 461,034 584,113 706,492 828,872 828,872

Table: Income Statement for the year ended December, 31 2011

181


Income Statement



Revenue

Sales 1265000 1265000 1278000 1280000 1297000 1298000 1306000 1302000 1306000 1311000 1310000 1310000 15528000

Costs of goods

sold 616000 616000 622000 622000 630000 630000 635000 633000 635000 636000 636000 636000 7547000

Gross Income 649000 649000 656000 658000 667000 668000 672000 669000 672000 675000 674000 674000 7983000

Operating

Expense

Marketing

Exense 14,841 14,841 14,841 14,841 14,841 14,841 14,841 14,841 14,841 14,841 14,841 14,841 178,092

Administrative

Expense 262,389.23 208,040.44 208,040.44 208,040.44 208,040.44 208,040.44 208,040.44 208,040.44 208,040.44 208,040.44 208,040.44 208,040.44 3,148,670.70

Raw Materials 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 36952.8

Direct Labor

Cost 154000 154000 154000 154000 154000 154000 154000 154000 154000 154000 154000 154000 1848000

Overhead 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000

Depreciation 15,148.86 15,148.86 15,148.86 15,148.86 15,148.86 15,148.86 15,148.86 15,148.86 15,148.86 15,148.86 15,148.86 15,148.86 301,786.26

Total

Operating

Expense

450,458 396,110 396,110 396,110 396,110 396,110 396,110 396,110 396,110 396,110 396,110 396,110 5,525,502

Income Before

Interest and

Tax

198,542 252,890 259,890 261,890 270,890 271,890 275,890 272,890 275,890 278,890 277,890 277,890 2,457,498

Interest

Expense 0 0 0 0 0 0 0 0 0 0 0 0 0

Taxs(30%) 59562.45 75867.09 77967.09 78567.09 81267.09 81567.09 82767.09 81867.09 82767.09 83667.09 83367.09 83367.09 737249.47

Net Inocme

for the Year 138,979 177,023 181,923 183,323 189,623 190,323 193,123 191,023 193,123 195,223 194,523 194,523 1,720,249

Retained

Earnings 967,851 1,144,874 1,326,797 1,510,121 1,699,744 1,890,067 2,083,190 2,274,213 2,467,337 2,662,560 2,857,083 3,051,606 3,051,606


182


Income Statement



Revenue

Sales 1455000 1455000 1470000 1472000 1492000 1493000 1502000 1497000 1502000 1508000 1507000 1507000 17860000

Costs of goods

sold 708000 708000 715000 715000 725000 725000 730000 728000 730000 731000 731000 731000 8677000

Gross Income 746000 746000 754000 757000 767000 768000 773000 769000 773000 776000 775000 775000 9179000

Operating

Expense

Marketing

Exense 15,064 15,064 15,064 0 15,064 15,064 15,064 0 15,064 15,064 15,064 15,064 150,639

Administrative

Expense 946,248.48 228,844.48 228,844.48 228,844.48 228,844.48 228,844.48 228,844.48 228,844.48 228,844.48 228,844.48 228,844.48 228,844.48 3,463,537.77

Raw Materials 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 36952.8

Direct Labor

Cost 154000 154000 154000 154000 154000 154000 154000 154000 154000 154000 154000 154000 1848000

Overhead 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000

Depreciation 25,044.69 25,044.69 25,044.69 25,044.69 25,044.69 25,044.69 25,044.69 25,044.69 25,044.69 25,044.69 25,044.69 25,044.69 300,536.26

Total

Operating

Expense

1,144,437 427,033 427,033 411,969 427,033 427,033 427,033 411,969 427,033 427,033 427,033 427,033 5,811,666

Income Before

Interest and

Tax

-398,437 318,967 326,967 345,031 339,967 340,967 345,967 357,031 345,967 348,967 347,967 347,967 3,367,334

Interest

Expense 0 0 0 0 0 0 0 0 0 0 0 0 0

Taxs(30%) 0.00 95690.25 98090.25 103509.43 101990.25 102290.25 103790.25 107109.43 103790.25 104690.25 104390.25 104390.25 1010200.25

Net Inocme for

the Year -389,437 223,277 228,877 241,522 237,977 238,677 242,177 249,922 242,177 244,277 243,577 243,577 2,357,134

Retained

Earnings 2,662,169 2,885,446 3,114,323 3,355,845 3,593,823 3,832,500 4,074,677 4,324,599 4,566,776 4,811,054 5,054,631 5,298,208 5,298,208


183


Income Statement



Revenue

Sales 1673000 1673000 1691000 1693000 1716000 1717000 1727000 1722000 1727000 1734000 1733000 1733000 20539000

Costs of goods

sold 814000 814000 822000 822000 834000 834000 840000 837000 840000 841000 841000 841000 9980000

Gross Income 858000 858000 867000 871000 882000 883000 889000 884000 889000 892000 891000 891000 10555000

Operating

Expense

Marketing

Exense 0 15,290 15,290 15,290 0 15,290 15,290 15,290 0 15,290 15,290 15,290 137,610

Administrative

Expense 1,135,498.17 274,613.38 274,613.38 274,613.38 274,613.38 274,613.38 274,613.38 274,613.38 274,613.38 274,613.38 274,613.38 274,613.38 4,156,245.32

Raw Materials 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 36952.8

Direct Labor

Cost 154000 154000 154000 154000 154000 154000 154000 154000 154000 154000 154000 154000 1848000

Overhead 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000

Depreciation 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 300,536.26

Total

Operating

Expense

1,318,622 473,027 473,027 473,027 457,737 473,027 473,027 473,027 457,737 473,027 473,027 473,027 6,491,344

Income Before

Interest and

Tax

-460,622 384,973 393,973 397,973 424,263 409,973 415,973 410,973 431,263 418,973 417,973 417,973 4,063,656

Interest

Expense 0 0 0 0 0 0 0 0 0 0 0 0 0

Taxs(30%) 0 115491.753 118191.753 119391.753 127278.762 122991.753 124791.753 123291.753 129378.762 125691.753 125391.753 125391.753 1219096.69

Net Inocme for

the Year -460,622 269,481 275,781 278,581 296,984 286,981 291,181 287,681 301,884 293,281 292,581 292,581 2,844,559

Retained

Earnings 4,837,586 5,107,067 5,382,848 5,661,428 5,958,412 6,245,393 6,536,574 6,824,254 7,126,138 7,419,419 7,712,000 8,004,580 8,004,580


184


Income Statement



Revenue

Sales 1924000 1924000 1945000 1947000 1973000 1975000 1986000 1980000 1986000 1994000 1993000 1993000 23620000

Costs of goods

sold 936000 936000 945000 945000 959000 959000 966000 963000 966000 967000 967000 967000 11476000

Gross Income 987000 987000 997000 1002000 1014000 1015000 1022000 1017000 1022000 1026000 1025000 1025000 12139000

Operating

Expense

Marketing

Exense 0 15,519 15,519 15,519 15,519 0 15,519 15,519 15,519 15,519 0 15,519 139,674

Administrative

Expense 1,476,147.62 356,997.39 356,997.39 356,997.39 356,997.39 356,997.39 356,997.39 356,997.39 356,997.39 356,997.39 356,997.39 356,997.39 5,403,118.92

Raw Materials 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 3079.4 36952.8

Direct Labor

Cost 154000 154000 154000 154000 154000 154000 154000 154000 154000 154000 154000 154000 1848000

Overhead 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000

Depreciation 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 25,044.68 300,536.26

Total

Operating

Expense

1,659,272 555,641 555,641 555,641 555,641 540,121 555,641 555,641 555,641 555,641 540,121 555,641 7,740,282

Income

Before

Interest and

Tax

-672,272 431,359 441,359 446,359 458,359 474,879 466,359 461,359 466,359 470,359 484,879 469,359 4,398,718

Interest

Expense 0 0 0 0 0 0 0 0 0 0 0 0 0

Taxs(30%) 0 129407.769 132407.769 133907.769 137507.769 142463.559 139907.769 138407.769 139907.769 141107.769 145463.559 140807.769 1319615.41

Net Inocme

for the Year -672,272 301,951 308,951 312,451 320,851 332,415 326,451 322,951 326,451 329,251 339,415 328,551 3,079,103

Retained

Earnings 7,332,308 7,634,259 7,943,211 8,255,662 8,576,514 8,908,929 9,235,380 9,558,332 9,884,783 10,214,035 10,553,450 10,882,001 10,882,001


185


Balance Sheet



Asset

Current

Asset

Cash 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 37,643,898

Total

current asset 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 2,599,617 37,643,898

Fixed Asset

Operating

and admin

fixed asset

265415 265415 265415 265415 265415 265415 265415 265415 265415 265415 265415 265415 3184974

Total Fixed

Asset 265415 265415 265415 265415 265415 265415 265415 265415 265415 265415 265415 265415 3184974

Total Assets 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 40,828,872

Liability and

Equity

Liability

Long-term

Payable 0 0 0 0 0 0 0 0 0 0 0 0 0

Total

Liability 0 0 0 0 0 0 0 0 0 0 0 0 0

Equity

Retain

earning -468,301 -468,301 -468,301 -468,301 -468,301 -468,301 -468,301 -468,301 -468,301 -468,301 -468,301 -468,301 828,872

Owner euity 3,333,333 3,333,333 3,333,333 3,333,333 3,333,333 3,333,333 3,333,333 3,333,333 3,333,333 3,333,333 3,333,333 3,333,333 40,000,000

Total equity 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 40,828,872

Total

Liability and

Equity

2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 40,828,872

Table: Balance sheet for the year ended December, 31 2011

186


Balance Sheet



Asset

Current

Asset

Cash 3,578,738 3,755,761 3,937,684 4,121,008 4,310,631 4,500,954 4,694,077 4,885,100 5,078,224 5,273,447 5,467,970 5,662,493 40,830,737

Total

current asset 3,578,738 3,755,761 3,937,684 4,121,008 4,310,631 4,500,954 4,694,077 4,885,100 5,078,224 5,273,447 5,467,970 5,662,493 40,830,737

Fixed Asset

Operating

and admin

fixed asset

254,145 254,145 254,145 254,145 254,145 254,145 254,145 254,145 254,145 254,145 254,145 254,145 3,049,741.08

Total Fixed

Asset 254,145 254,145 254,145 254,145 254,145 254,145 254,145 254,145 254,145 254,145 254,145 254,145 3,049,741.08

Total Assets 3,832,883 4,009,906 4,191,829 4,375,153 4,564,776 4,755,099 4,948,222 5,139,245 5,332,369 5,527,592 5,722,115 5,916,638 43,880,478

Liability and

Equity

Liability

Long-term

Payable 0 0 0 0 0 0 0 0 0 0 0 0 0

Total

Liability 0 0 0 0 0 0 0 0 0 0 0 0 0

Equity

Retain

earning 967,851 1,144,874 1,326,797 1,510,121 1,699,744 1,890,067 2,083,190 2,274,213 2,467,337 2,662,560 2,857,083 3,051,606 3,051,606

Owner euity 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 2,865,032 40,828,872

Total equity 3,832,883 4,009,906 4,191,829 4,375,153 4,564,776 4,755,099 4,948,222 5,139,245 5,332,369 5,527,592 5,722,115 5,916,638 43,880,478

Total

Liability and

Equity

3,832,883 4,009,906 4,191,829 4,375,153 4,564,776 4,755,099 4,948,222 5,139,245 5,332,369 5,527,592 5,722,115 5,916,638 43,880,478


187


Balance Sheet



Asset

Current

Asset

Cash 6,265,179 6,665,479 7,076,279 7,501,125 7,928,726 8,357,726 8,793,026 9,233,971 9,669,272 10,108,773 10,546,873 10,984,973 46,420,209

Total

current asset 6,265,179 6,665,479 7,076,279 7,501,125 7,928,726 8,357,726 8,793,026 9,233,971 9,669,272 10,108,773 10,546,873 10,984,973 46,420,209

Fixed Asset

Operating

and admin

fixed asset

229,873 229,873 229,873 229,873 229,873 229,873 229,873 229,873 229,873 229,873 229,873 229,873 2,758,476.70

Total Fixed

Asset 229,873 229,873 229,873 229,873 229,873 229,873 229,873 229,873 229,873 229,873 229,873 229,873 2,758,476.70

Total Assets 6,495,052 6,895,352 7,306,152 7,730,998 8,158,599 8,587,599 9,022,899 9,463,844 9,899,145 10,338,646 10,776,746 11,214,846 49,178,686

Liability and

Equity

Liability

Long-term

Payable 0 0 0 0 0 0 0 0 0 0 0 0 0

Total

Liability 0 0 0 0 0 0 0 0 0 0 0 0 0

Equity

Retain

earning 2,662,169 2,885,446 3,114,323 3,355,845 3,593,823 3,832,500 4,074,677 4,324,599 4,566,776 4,811,054 5,054,631 5,298,208 5,298,208

Owner euity 3,832,883 4,009,906 4,191,829 4,375,153 4,564,776 4,755,099 4,948,222 5,139,245 5,332,369 5,527,592 5,722,115 5,916,638 43,880,478

Total equity 6,495,052 6,895,352 7,306,152 7,730,998 8,158,599 8,587,599 9,022,899 9,463,844 9,899,145 10,338,646 10,776,746 11,214,846 49,178,686

Total

Liability and

Equity

6,495,052 6,895,352 7,306,152 7,730,998 8,158,599 8,587,599 9,022,899 9,463,844 9,899,145 10,338,646 10,776,746 11,214,846 49,178,686


188


Balance Sheet



Asset

Current

Asset

Cash 11,127,810 11,797,591 12,484,172 13,187,598 13,912,183 14,628,164 15,354,645 16,083,270 16,820,455 17,553,237 18,283,918 19,014,598 54,725,325

Total

current asset 11,127,810 11,797,591 12,484,172 13,187,598 13,912,183 14,628,164 15,354,645 16,083,270 16,820,455 17,553,237 18,283,918 19,014,598 54,725,325

Fixed Asset

Operating

and admin

fixed asset

204,828 204,828 204,828 204,828 204,828 204,828 204,828 204,828 204,828 204,828 204,828 204,828 2,457,940.60

Total Fixed

Asset 204,828 204,828 204,828 204,828 204,828 204,828 204,828 204,828 204,828 204,828 204,828 204,828 2,457,940.60

Total Assets 11,332,638 12,002,419 12,689,000 13,392,426 14,117,011 14,832,992 15,559,473 16,288,098 17,025,283 17,758,065 18,488,746 19,219,426 57,183,266

Liability and

Equity

Liability

Long-term

Payable 0 0 0 0 0 0 0 0 0 0 0 0 0

Total

Liability 0 0 0 0 0 0 0 0 0 0 0 0 0

Equity

Retain

earning 4,837,586 5,107,067 5,382,848 5,661,428 5,958,412 6,245,393 6,536,574 6,824,254 7,126,138 7,419,419 7,712,000 8,004,580 8,004,580

Owner euity 6,495,052 6,895,352 7,306,152 7,730,998 8,158,599 8,587,599 9,022,899 9,463,844 9,899,145 10,338,646 10,776,746 11,214,846 49,178,686

Total equity 11,332,638 12,002,419 12,689,000 13,392,426 14,117,011 14,832,992 15,559,473 16,288,098 17,025,283 17,758,065 18,488,746 19,219,426 57,183,266

Total

Liability and

Equity

11,332,638 12,002,419 12,689,000 13,392,426 14,117,011 14,832,992 15,559,473 16,288,098 17,025,283 17,758,065 18,488,746 19,219,426 57,183,266


189


Balance Sheet



Asset

Current

Asset

Cash 18,664,766 19,636,498 20,632,031 21,647,908 22,693,345 23,741,741 24,794,673 25,846,250 26,909,886 27,971,920 29,042,016 30,101,247 65,907,864

Total

current asset 18,664,766 19,636,498 20,632,031 21,647,908 22,693,345 23,741,741 24,794,673 25,846,250 26,909,886 27,971,920 29,042,016 30,101,247 65,907,864

Fixed Asset

Operating

and admin

fixed asset

179.784 179.784 179.784 179.784 179.784 179.784 179.784 179.784 179.784 179.784 179.784 179.784 2,157,403.50

Total Fixed

Asset 179.784 179.784 179.784 179.784 179.784 179.784 179.784 179.784 179.784 179.784 179.784 179.784 2,157,403.50

Total Assets 18,664,946 19,636,678 20,632,211 21,648,088 22,693,525 23,741,921 24,794,853 25,846,430 26,910,066 27,972,100 29,042,196 30,101,427 68,065,267

Liability and

Equity

Liability

Long-term

Payable 0 0 0 0 0 0 0 0 0 0 0 0 0

Total

Liability 0 0 0 0 0 0 0 0 0 0 0 0 0

Equity

Retain

earning 7,332,308 7,634,259 7,943,211 8,255,662 8,576,514 8,908,929 9,235,380 9,558,332 9,884,783 10,214,035 10,553,450 10,882,001 10,882,001

Owner euity 11,332,638 12,002,419 12,689,000 13,392,426 14,117,011 14,832,992 15,559,473 16,288,098 17,025,283 17,758,065 18,488,746 19,219,426 57,183,266

Total equity 18,664,946 19,636,678 20,632,211 21,648,088 22,693,525 23,741,921 24,794,853 25,846,430 26,910,066 27,972,100 29,042,196 30,101,427 68,065,267

Total

Liability and

Equity

18,664,946 19,636,678 20,632,211 21,648,088 22,693,525 23,741,921 24,794,853 25,846,430 26,910,066 27,972,100 29,042,196 30,101,427 68,065,267


190


Cash Flows



Cash flows

from

Operating

activities

Cash Inflow

Cash received

on sales 1100000 1100000 1111000 1113000 1128000 1129000 1136000 1132000 1136000 1140000 1139000 1139000 13503000

Adjust

Depreciation 40409 40409 40409 40409 40409 40409 40409 40409 40409 40409 40409 40409 484911

Other 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash inflow

from operating

activity

1140409 1140409 1151409 1153409 1168409 1169409 1176409 1172409 1176409 1180409 1179409 1179409 13987911

Cash Outflow

Cost of goods

sold 536000 536000 541000 541000 548000 548000 552000 550000 552000 553000 553000 553000 6563000

Marketing

Expense 14,550 14,550 14,550 14,550 14,550 14,550 14,550 14,550 14,550 14,550 14,550 14,550 174,600

Administrative

Expense 819,262.

75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75 198,133.75

2,998,734.

00

Cash paid for

income tax 0 45848.3 47648.3 48248.3 50648.3 50948.3 51848.3 51248.3 51848.3 52748.3 52448.3 52448.3 415440.8

Other cash

expense 158079.

4 158079.4 158079.4 158079.4 158079.4 158079.4 158079.4 158079.4 158079.4 158079.4 158079.4 158079.4 1896952.8

Cash out flow

from operating

activity

1527892 952611 959411 960011 969411 969711 974611 972011 974611 976511 976211 976211 12048728

Net Cash

Flows from

Operating

acitvity

(387483

) 187798 191998 193398 198998 199698 201798 200398 201798 203898 203198 203198 1939183

Cash Flow

from

investment

activity

Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash Outflow 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash paid on

administrative

investment

0 0 0 0 0 0 0 0 0 0 0 0 0

Net Csh

Flows from

investmenting

activity

0 0 0 0 0 0 0 0 0 0 0 0 0

Cash flows

from financing

activity

Cash Loan 0 0 0 0 0 0 0 0 0 0 0 0 0

Repayment for

interest loan 0 0 0 0 0 0 0 0 0 0 0 0 0

Net cash flows

from financing

activity

0 0 0 0 0 0 0 0 0 0 0 0 0

Net Cash

increase or

decrease

(387483

) 187798 191998 193398 198998 199698 201798 200398 201798 203898 203198 203198 1939183

Beginning

Cash

(387483

) (387483) (199685) (7687) 185710 384708 584406 786204 986601 1188399 1392297 1595495 1798692

Ending Cash (387483

) (199685) (7687) 185710 384708 584406 786204 986601 1188399 1392297 1595495 1798692 3737876

191

Table: Cash Flows for the year ended December, 31 2011


Cash Flows



Cash flows

from Operating

activities

Cash Inflow

Cash received

on sales 1265000 1265000 1278000 1280000 1297000 1298000 1306000 1302000 1306000 1311000 1310000 1310000 15528000

Adjust

Depreciation 15149 15149 15149 15149 15149 15149 15149 15149 15149 15149 15149 15149 301786

Other 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash inflow

from operating

activity

1280149 1280149 1293149 1295149 1312149 1313149 1321149 1317149 1321149 1326149 1325149 1325149 15829786

Cash Outflow

Cost of goods

sold 616000 616000 622000 622000 630000 630000 635000 633000 635000 636000 636000 636000 7547000

Marketing

Expense 14841 14841 14841 14841 14841 14841 14841 14841 14841 14841 14841 14841 178092

Administrative

Expense 262389 208040 208040 208040 208040 208040 208040 208040 208040 208040 208040 208040 3148671

Cash paid for

income tax 4452 4452 4452 4452 4452 4452 4452 4452 4452 4452 4452 4452 53428

Other cash

expense 158079 158079 158079 158079 158079 158079 158079 158079 158079 158079 158079 158079 1896953

Cash out flow

from operating

activity

1055762 1001413 1007413 1007413 1015413 1015413 1020413 1018413 1020413 1021413 1021413 1021413 12824143

Net Cash

Flows from

Operating

acitvity

224387 278736 285736 287736 296736 297736 300736 298736 300736 304736 303736 303736 3005643

Cash Flow from

investment

activity

Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash Outflow 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash paid on

administrative

investment

0 0 0 0 0 0 0 0 0 0 0 0 0

Net Csh Flows

from

investmenting

activity

0 0 0 0 0 0 0 0 0 0 0 0 0

Cash flows

from financing

activity

Cash Loan 0 0 0 0 0 0 0 0 0 0 0 0 0

Repayment for

interest loan 0 0 0 0 0 0 0 0 0 0 0 0 0

Net cash flows

from financing

activity

0 0 0 0 0 0 0 0 0 0 0 0 0

Net Cash

increase or

decrease

224387 278736 285736 287736 296736 297736 300736 298736 300736 304736 303736 303736 3005643

Beginning

Cash 3737876 3962263 4240999 4526734 4814470 5111206 5408942 5709677 6008413 6309149 6613884 6917620 7221356

Ending Cash 3962263 4240999 4526734 4814470 5111206 5408942 5709677 6008413 6309149 6613884 6917620 7221356 10226999


192


Cash Flows



Cash flows from

Operating activities

Cash Inflow

Cash received on

sales 1455000 1455000 1470000 1472000 1492000 1493000 1502000 1497000 1502000 1508000 1507000 1507000 17860000

Adjust Depreciation 25045 25045 25045 25045 25045 25045 25045 25045 25045 25045 25045 25045 300536

Other 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash inflow from

operating activity 1480045 1480045 1495045 1497045 1517045 1518045 1527045 1522045 1527045 1533045 1532045 1532045 18160536

Cash Outflow

Cost of goods sold 708000 708000 715000 715000 725000 725000 730000 728000 730000 731000 731000 731000 8677000

Marketing Expense 15064 15064 15064 0 15064 15064 15064 0 15064 15064 15064 15064 150639

Administrative

Expense 946248 228844 228844 228844 228844 228844 228844 228844 228844 228844 228844 228844 3463538

Cash paid for income

tax 0 4519 4519 0 4519 4519 4519 0 4519 4519 4519 4519 45192

Other cash expense 158079 158079 158079 158079 158079 158079 158079 158079 158079 158079 158079 158079 1896953

Cash out flow from


Net Cash Flows

from Operating

acitvity

(347347) 365538 373538 395121 385538 386538 390538 407121 390538 395538 394538 394538 3927215

Cash Flow from

investment activity

Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash Outflow 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash paid on

administrative

investment

0 0 0 0 0 0 0 0 0 0 0 0 0

Net Csh Flows from

investmenting

activity

0 0 0 0 0 0 0 0 0 0 0 0 0

Cash flows from

financing activity

Cash Loan 0 0 0 0 0 0 0 0 0 0 0 0 0

Repayment for

interest loan 0 0 0 0 0 0 0 0 0 0 0 0 0

Net cash flows from

financing activity 0 0 0 0 0 0 0 0 0 0 0 0 0

Net Cash increase

or decrease (347347) 365538 373538 395121 385538 386538 390538 407121 390538 395538 394538 394538 3927215

Beginning Cash 10226999 9879652 10245190 10618727 11013848 11399386 11785923 12176461 12583582 12974120 13369657 13764195 14158733

Ending Cash 9879652 10245190 10618727 11013848 11399386 11785923 12176461 12583582 12974120 13369657 13764195 14158733 18085948


193


Cash Flows



Cash flows

from Operating

activities

Cash Inflow

Cash received

on sales 1673000 1673000 1691000 1693000 1716000 1717000 1727000 1722000 1727000 1734000 1733000 1733000 20539000

Adjust

Depreciation 25045 25045 25045 25045 25045 25045 25045 25045 25045 25045 25045 25045 300536

Other 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash inflow

from operating

activity

1698045 1698045 1716045 1718045 1741045 1742045 1752045 1747045 1752045 1759045 1758045 1758045 20839536

Cash Outflow

Cost of goods

sold 814000 814000 822000 822000 834000 834000 840000 837000 840000 841000 841000 841000 9980000

Marketing

Expense 0 15290 15290 15290 0 15290 15290 15290 0 15290 15290 15290 137610

Administrative

Expense 1135498 274613 274613 274613 274613 274613 274613 274613 274613 274613 274613 274613 4156245

Cash paid for

income tax 0 4587 4587 4587 0 4587 4587 4587 0 4587 4587 4587 41283

Other cash

expense 158079 158079 158079 158079 158079 158079 158079 158079 158079 158079 158079 158079 1896953

Cash out flow

from operating

activity

2107578 1266570 1274570 1274570 1266693 1286570 1292570 1289570 1272693 1293570 1293570 1293570 16212091

Net Cash

Flows from

Operating

acitvity

(409533) 431475 441475 443475 474352 455475 459475 457475 479352 465475 464475 464475 4627445

Cash Flow from

investment

activity

Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash Outflow 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash paid on

administrative

investment

0 0 0 0 0 0 0 0 0 0 0 0 0

Net Csh Flows

from

investmenting

activity

0 0 0 0 0 0 0 0 0 0 0 0 0

Cash flows

from financing

activity

Cash Loan 0 0 0 0 0 0 0 0 0 0 0 0 0

Repayment for

interest loan 0 0 0 0 0 0 0 0 0 0 0 0 0

Net cash flows

from financing

activity

0 0 0 0 0 0 0 0 0 0 0 0 0

Net Cash

increase or

decrease

(409533) 431475 441475 443475 474352 455475 459475 457475 479352 465475 464475 464475 4627445

Beginning

Cash 18085948 17676415 18107890 18549365 18992840 19467192 19922666 20382141 20839616 21318968 21784443 22248918 22713393

Ending Cash 17676415 18107890 18549365 18992840 19467192 19922666 20382141 20839616 21318968 21784443 22248918 22713393 27340838


194


Cash Flows



Cash flows from

Operating

activities

Cash Inflow

Cash received on

sales 1924000 1924000 1945000 1947000 1973000 1975000 1986000 1980000 1986000 1994000 1993000 1993000 23620000

Adjust

Depreciation 25045 25045 25045 25045 25045 25045 25045 25045 25045 25045 25045 25045 300536

Other 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash inflow from


Cash Outflow

Cost of goods sold 936000 936000 945000 945000 959000 959000 966000 963000 966000 967000 967000 967000 11476000

Marketing

Expense 0 15519 15519 15519 15519 0 15519 15519 15519 15519 0 15519 139674

Administrative

Expense 1476148 356997 356997 356997 356997 356997 356997 356997 356997 356997 356997 356997 5403119

Cash paid for

income tax 0 4656 4656 4656 4656 0 4656 4656 4656 4656 0 4656 41902

Other cash

expense 158079 158079 158079 158079 158079 158079 158079 158079 158079 158079 158079 158079 1896953

Cash out flow

from operating

activity

2570227 1471252 1480252 1480252 1494252 1474077 1501252 1498252 1501252 1502252 1482077 1502252 18957648

Net Cash Flows

from Operating

acitvity

(621182) 477793 489793 491793 503793 525968 509793 506793 509793 516793 535968 515793 4962888

Cash Flow from

investment

activity

Cash inflow 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash Outflow 0 0 0 0 0 0 0 0 0 0 0 0 0

Cash paid on

administrative

investment

0 0 0 0 0 0 0 0 0 0 0 0 0

Net Csh Flows

from

investmenting

activity

0 0 0 0 0 0 0 0 0 0 0 0 0

Cash flows from

financing activity

Cash Loan 0 0 0 0 0 0 0 0 0 0 0 0 0

Repayment for

interest loan 0 0 0 0 0 0 0 0 0 0 0 0 0

Net cash flows

from financing

activity

0 0 0 0 0 0 0 0 0 0 0 0 0

Net Cash

increase or

decrease

(621182) 477793 489793 491793 503793 525968 509793 506793 509793 516793 535968 515793 4962888

Beginning Cash 27340838 26719656 27197448 27687241 28179034 28682827 29208795 29718588 30225380 30735173 31251966 31787934 32303727

Ending Cash 26719656 27197448 27687241 28179034 28682827 29208795 29718588 30225380 30735173 31251966 31787934 32303727 37266615


195

Chapter8

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 ("down side 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.

Business Risk

Is the changes or uncertain of the ability of company’s profitability

Market Risk

Is comes from the changing of demand to the consumer which is based on demand and

supply of market.

Interest Rate Risk

Is the arising from changes in the rate of exchange currency of the foreign market that

who are our consumer because of fluctuations in foreign exchange markets.

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

.

196

The external forces

Are technological change, customer needs, economic condition, laws and regulations,

government stability, competitive, condition, money and capital markets, foreign 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:

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.

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.

Input cost variability

Is the changing in company’s the 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.

Ability to adjust output prices for change in input costs

Is the ability of the company to adjust prices when the cost of services increases. In the

businesses world, they need to adjust the service 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.

Fixed costs

Are the obligation to the company. If the percentage of fixed cost is high but the

demand of the service is low. It may rise the high percentage of occurring risk to the

197

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.

A risky operation

Nature of the risk in the forwarder may be delayed in shipping due to the accident, the

steps to get the border between the countries. Inclement weather and transport goods. The

company will reduce the risk of accidents from the transport of goods by the company use

public transport to ensure the accidental damage due to shipment. The whole process should be

made in the management system to reduce the impact of the risk to the company.

Market Risk

Is the risk that come from the price of the case that changes it will effect to our cost .If

the price going higher our profit will reduce because our cost increase but in the opposite side if

the price of case going down our company will get more profit.

Financial Risk

Is the risk from the changes in the rate of exchange currency of the foreign market that

who are our consumer like when the customer that order the product from Thailand by using

our company if the Thai baht recession foreign customer will like to order from us it is the good

point but when we exchange that foreign currency to Thai currency we will get less. Changes in

currency exchange rates may affect the supply and demand. The economy, economic policy

can affect the profits of the money from investors, Max freight service forwarder company

learn to help to reduce impact of financial risk by doing research and forecasts of economic

trade transportation market worldwide.

198

Management Risk

Risk management issues from a to diversify the risks of the company that provides

freight transportation company is responsible for any damage caused by employees or the

services of the company and The insurance company is responsible for the damage to the goods

from damage during shipping.

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.

199

8. Arrange for insurance coverage to begin before the doors open on your business, if possible.

9. Put your plan in a place where it can be located quickly, if needed. Have an extra copy in a

safe location.

10. 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. 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 good accounting and

financial control information system to alert you to problems that might be arising in cash flow,

thief, fraud, or other financial trouble spots in the business.

200

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 start up 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.

1. Sales decrease by 5%

Sales Revenue will be Net income will be

Year 2011 12827850 496,757

Year 2012 14751600 1175369

Year 2013 16967000 1734834

Year 2014 19512050 2128495

Year 2015 22439000 2255903

Table: Sales decrease by 5%

201

Sales decrease by 10%


Year 2011 12152700 24152

Year 2012 13975200 631,889

Year 2013 16074000 1,109,734

Year 2014 18485100 1,409,629

Year 2015 21258000 1,429,203


Sales decrease by 15%


Year 2011 11477550 -448,453

Year 2012 13198800 88,409

Year 2013 15181000 484,634

Year 2014 17458150 690,764

Year 2015 20077000 602,503


202

2. For the interest changing will not influence our company, because all our investments comes

from our stockholders, we didn’t get any loan from banks. So we will not consider the interest

risk.

3. Cost/Expense increase by 5%

Total Cost/Expense will be Net income will be

Year 2011 12,724,107 545,225

Year 2012 13,726,127 1,526,856

Year 2013 15,213,099 2,153,726

Year 2014 17,294,912 2,617,362

Year 2015 20,177,096 2,808,193

Table: Cost/Expense increase by 5%

Cost/Expense increase by 10%

Total Cost/Expense will be Net income will be

Year 2011 13,330,017 121,088

Year 2012 14,379,752 1,333,464

Year 2013 15,937,532 1,950,318

Year 2014 18,118,479 2,390,152

Year 2015 21,137,910 2,537,283


203

Cost/Expense increase by 15%

Total Cost/Expense will

be

Net income will be

Year 2011 13,935,927 -303,049

Year 2012 15,033,377 1,140,071

Year 2013 16,661,966 1,746,909

Year 2014 18,942,046 2,162,968

Year 2015 22,098,724 2,266,373


204

Chapter 9

Summary

Risk Management- Operation Risk

Result may be delayed in shipping due to the accident, the steps to get the border

between the countries. Inclement weather and transport goods and the company will reduce the

risk of accidents from the transport of goods by the company use public transport to ensure the

accidental damage due to shipment. The whole process should be made in the management

system to reduce the impact of the risk to the company.

Market Risk

Marketing risk is the risk that come from the price of the case that changes it will effect

to our cost .If the price of case going higher our profit will reduce because our cost increase

but in the opposite side if the price of case going down our company will get more profit.

Financial Risk

is the risk from the changes in the rate of exchange currency of the foreign market that

who are our consumer like when the customer that order the product from Thailand by using

our company if the Thai baht recession foreign customer will like to order from us it is the good

point but when we exchange that foreign currency to Thai currency we will get less. Changes in

currency exchange rates may affect the supply and demand. The economy, economic policy

can affect the profits of the money from investors, Max freight service forwarder company

learn to help to reduce impact of financial risk by doing research and forecasts of economic

trade transportation market worldwide.

The sales forecast of company in year 1 to year 5 increasing follow as:

Sales Year 1 = 6,940,000 Baht


Sales Year 3 = 9,179,000Baht

205

Sales Year 4 = 10,555,000Baht


From sales forecast of Max freight service forwarder company, it makes the company has income

statement in each year follow as:

Income Statement

Year 1= 969,362 Baht

Year 2 = 1,720,249 Baht

Year 3 = 2,357,134 Baht

Year 4 = 2,844,559 Baht

Year 5 = 3,079,103 Baht

From financial forecast of business as 5 years, the payback period of Max freight service forwarder

company equal 6 month in the first year.