My role for this question is to be the Finance Manager, so the question that the Finance Manager need to answer is as below:

the changes and identify the potential bottlenecks. The CEO is looking forward to answering the following questions: 1. Will the suggested initiatives to upgrade the production capacity by installing two additional factory unit lines is technically feasible, financially viable and organizationally realizable? 2. Should the organization proceed with the execution? He has assigned the team lead by the Project Manager consisting of the Manufacturing, Marketing, Finance, Human Resource and Engineering and Operation Managers to carry out a feasibility study. They must produce a report and present their findings/ recommendations in a formal presentation. A detailed overall project feasibility analysis process flowchart is required to be integrated in the report. Individual students/Team Members must adopt one of the following managerial roles for their part of the report and each member needs to have a different role. The main questions to be answered by each management team members are: Finance Manager What are the financial implications to the business? What is the current profit/loss status? What will be the profit/loss status after the capacity upgrading? Is the new project viable financially? The cash flow and cost/benefit analysis that clearly articulated the payback period, ROI, NPV etc. is essential in the report and presentation. Appendix 1 Financial data Assumptions Fixed costs are shared equally between production lines. Discount Cash flow calculations - uses 8% Discount rate. Table 1: Monthly Fixed Expenses Expenses Advertising Direct Marketing R&D Wages and Salaries Labor Materials Outside Service Sundry Supplies Meals and Entertainment Rent Telephone Utilities Depreciation Insurance Cost (RM) 16,500.00 27,500.00 16,500.00 220,000.00 440.000.00 275,000.00 165,000.00 825.00 1,375.00 55,000.00 11,000.00 11,000.00 11,000.000 Direct cost for installing additional two-unit assembly line. Table 2: Installation Cost Items Machineries Installation Cost Per Unit (RM) 10,000,000.00 5% of machineries cost Table 3: Direct Labour Estimated Labour Operator Supervisor Logistic Planner Warehouse Supervisor Drivers Head Count Per Shift 11 1 1 1 3 Annual Salary (RM) 1,100,000.00 192,500.00 137,500.00 192,500.00 330,000.00 3 Table 4: Capital expenditure for infrastructure extension and others related to installing additional two-unit assembly line. Parameters Capital Expenditure (RM) Civil Works 12,500,000.00 Electrical 5,500,000.00 Mechanical 11,000,000.00 An increment in production rate is expected with the additional unit factory lines. Below are the sales unit forecast for 5 years for Product 1 (Pl) and Product 2 (P2). Table 5(a): Sales Forecast Year 1 (thousand unit/month) PI P2 Jan 3.3 2.0 Feb 3.3 2.0 Mar 3.3 2.0 Apr 3.3 2.0 May 3.3 2.0 Jun 3.3 2.0 Jul 3.3 2.0 Aug 3.3 2.0 Sept 3.3 2.0 Oct 3.3 2.0 Nov 3.3 2.0 Dec 3.3 2.0 Table 5(b): Sales Forecast Year 2 (thousand unit/month) Feb Mar Apr May Jun Jul Aug Sept Oct 2.7 2.7 2.7 2.7 2.7 2.7 2.7 1.8 1.8 1.8 1.8 1.8 1.8 1.8 Nov Dec Jan 2.7 1.8 PI 2.7 1.8 2.7 1.8 2.7 2.7 1.8 P2 1.8 Table 5(c): Sales Forecast Year 3 (thousand unit/month) Jan 2.9 1.8 Feb 2.9 1.8 Mar 2.9 1.8 Apr 2.9 1.8 May 2.9 1.8 Jun 2.9 1.8 Jul 2.9 1.8 Aug 2.9 1.8 Sept 2.9 1.8 Oct 2.9 1.8 Nov 2.9 1.8 Dec 2.9 1.8 P2 Table 5(d): Sales Forecast Year 4 (thousand unit/month) Jun Oct Dec P1 P2 Jan 3.3 2.0 Feb 3.3 Mar 3.3 2.0 Apr 3.3 May 3.3 2.0 Jul 3.3 2.0 Aug 3.3 2.0 Sept 3.3 2.0 3.3 Nov 3.3 2.0 2.0 2.0 2.0 2.0 2.0 Table 5(e): Sales Forecast Year 5 (thousand unit/month) PI P2 Jan 3.5 2.2 Feb 3.5 2.2 Mar 3.5 2.2 Apr 3.5 2.2 May 3.5 2.2 Jun 3.5 2.2 Jul 3.5 2.2 Aug 3.5 2.2 Sept 3.5 2.2 Oct 3.5 2.2 Nov 3.5 2.2 Dec 3.5 2.2 The selling price of P1 and P2 is estimated at a range of RM 49,500 to RM 71,500, respectively. Table 3 Forecast of future selling prices (RM) P1 P2 Year 1 49,500 55,000 Year 2 49,500 66,000 Year 3 55,000 71,500 Year 4 55,000 71,500 Year 5 55,000 71,500 Appendix 2 The manufacturing process plant of APRA Duxes Pte. Ltd is shown in Figure A2(a) below operating for 24 hours daily on three rotational shifts. The plan is to add two-unit factory to increase the daily manufacturing rate as shown in Figure A2(b). The extension will add 25% of the existing floor area. SEQUENCER Production sequence planning Automobile manufacturing factory NXAUTO Airlocation Body manufacturing process (welding) Coating process Assembly inspection process Storage of finished automobiles (position detection POP Pressing process (pressing Resin molding process Bumper coating process Unit factory Unit processing Casting and forging Machining process process Unit assembly Assembly and inspection process 9101010 Figure A2 SEQUENCER Production sequence planning Automobile manufacturing factory NXAUTO Airlocation Body Imanufacturing process (welding) Coating process Assembly and inspection process Storage of finished automobiles (position detection) POP Pressing process (pressing Resin molding process Bumper coating process Unit factory Unit processing Casting Machining and forging process process 0000 Unit assembly Assembly and inspection process Unit factory Unit processing Casting and forging Machining process process Unit assembly Assembly and inspection process Unit factory Unit processing Casting and forging Machining process process Unit assembly Assembly and inspection process 0000 Figure A2(b) the changes and identify the potential bottlenecks. The CEO is looking forward to answering the following questions: 1. Will the suggested initiatives to upgrade the production capacity by installing two additional factory unit lines is technically feasible, financially viable and organizationally realizable? 2. Should the organization proceed with the execution? He has assigned the team lead by the Project Manager consisting of the Manufacturing, Marketing, Finance, Human Resource and Engineering and Operation Managers to carry out a feasibility study. They must produce a report and present their findings/ recommendations in a formal presentation. A detailed overall project feasibility analysis process flowchart is required to be integrated in the report. Individual students/Team Members must adopt one of the following managerial roles for their part of the report and each member needs to have a different role. The main questions to be answered by each management team members are: Finance Manager What are the financial implications to the business? What is the current profit/loss status? What will be the profit/loss status after the capacity upgrading? Is the new project viable financially? The cash flow and cost/benefit analysis that clearly articulated the payback period, ROI, NPV etc. is essential in the report and presentation. Appendix 1 Financial data Assumptions Fixed costs are shared equally between production lines. Discount Cash flow calculations - uses 8% Discount rate. Table 1: Monthly Fixed Expenses Expenses Advertising Direct Marketing R&D Wages and Salaries Labor Materials Outside Service Sundry Supplies Meals and Entertainment Rent Telephone Utilities Depreciation Insurance Cost (RM) 16,500.00 27,500.00 16,500.00 220,000.00 440.000.00 275,000.00 165,000.00 825.00 1,375.00 55,000.00 11,000.00 11,000.00 11,000.000 Direct cost for installing additional two-unit assembly line. Table 2: Installation Cost Items Machineries Installation Cost Per Unit (RM) 10,000,000.00 5% of machineries cost Table 3: Direct Labour Estimated Labour Operator Supervisor Logistic Planner Warehouse Supervisor Drivers Head Count Per Shift 11 1 1 1 3 Annual Salary (RM) 1,100,000.00 192,500.00 137,500.00 192,500.00 330,000.00 3 Table 4: Capital expenditure for infrastructure extension and others related to installing additional two-unit assembly line. Parameters Capital Expenditure (RM) Civil Works 12,500,000.00 Electrical 5,500,000.00 Mechanical 11,000,000.00 An increment in production rate is expected with the additional unit factory lines. Below are the sales unit forecast for 5 years for Product 1 (Pl) and Product 2 (P2). Table 5(a): Sales Forecast Year 1 (thousand unit/month) PI P2 Jan 3.3 2.0 Feb 3.3 2.0 Mar 3.3 2.0 Apr 3.3 2.0 May 3.3 2.0 Jun 3.3 2.0 Jul 3.3 2.0 Aug 3.3 2.0 Sept 3.3 2.0 Oct 3.3 2.0 Nov 3.3 2.0 Dec 3.3 2.0 Table 5(b): Sales Forecast Year 2 (thousand unit/month) Feb Mar Apr May Jun Jul Aug Sept Oct 2.7 2.7 2.7 2.7 2.7 2.7 2.7 1.8 1.8 1.8 1.8 1.8 1.8 1.8 Nov Dec Jan 2.7 1.8 PI 2.7 1.8 2.7 1.8 2.7 2.7 1.8 P2 1.8 Table 5(c): Sales Forecast Year 3 (thousand unit/month) Jan 2.9 1.8 Feb 2.9 1.8 Mar 2.9 1.8 Apr 2.9 1.8 May 2.9 1.8 Jun 2.9 1.8 Jul 2.9 1.8 Aug 2.9 1.8 Sept 2.9 1.8 Oct 2.9 1.8 Nov 2.9 1.8 Dec 2.9 1.8 P2 Table 5(d): Sales Forecast Year 4 (thousand unit/month) Jun Oct Dec P1 P2 Jan 3.3 2.0 Feb 3.3 Mar 3.3 2.0 Apr 3.3 May 3.3 2.0 Jul 3.3 2.0 Aug 3.3 2.0 Sept 3.3 2.0 3.3 Nov 3.3 2.0 2.0 2.0 2.0 2.0 2.0 Table 5(e): Sales Forecast Year 5 (thousand unit/month) PI P2 Jan 3.5 2.2 Feb 3.5 2.2 Mar 3.5 2.2 Apr 3.5 2.2 May 3.5 2.2 Jun 3.5 2.2 Jul 3.5 2.2 Aug 3.5 2.2 Sept 3.5 2.2 Oct 3.5 2.2 Nov 3.5 2.2 Dec 3.5 2.2 The selling price of P1 and P2 is estimated at a range of RM 49,500 to RM 71,500, respectively. Table 3 Forecast of future selling prices (RM) P1 P2 Year 1 49,500 55,000 Year 2 49,500 66,000 Year 3 55,000 71,500 Year 4 55,000 71,500 Year 5 55,000 71,500 Appendix 2 The manufacturing process plant of APRA Duxes Pte. Ltd is shown in Figure A2(a) below operating for 24 hours daily on three rotational shifts. The plan is to add two-unit factory to increase the daily manufacturing rate as shown in Figure A2(b). The extension will add 25% of the existing floor area. SEQUENCER Production sequence planning Automobile manufacturing factory NXAUTO Airlocation Body manufacturing process (welding) Coating process Assembly inspection process Storage of finished automobiles (position detection POP Pressing process (pressing Resin molding process Bumper coating process Unit factory Unit processing Casting and forging Machining process process Unit assembly Assembly and inspection process 9101010 Figure A2 SEQUENCER Production sequence planning Automobile manufacturing factory NXAUTO Airlocation Body Imanufacturing process (welding) Coating process Assembly and inspection process Storage of finished automobiles (position detection) POP Pressing process (pressing Resin molding process Bumper coating process Unit factory Unit processing Casting Machining and forging process process 0000 Unit assembly Assembly and inspection process Unit factory Unit processing Casting and forging Machining process process Unit assembly Assembly and inspection process Unit factory Unit processing Casting and forging Machining process process Unit assembly Assembly and inspection process 0000 Figure A2(b)