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LANSANG | REYES | SANCHEZ | SUN

U O

AUTOJOB
Auto body shop Aiming to reduce a neglected sector of those unemployed Located in San Juan City Basic vehicle services: Washovers with minor body repair & per panel painting with minor body repair Fully equipped with the latest painting and body repair tools and equipment Total capital requirement: P600,000

Unmanageability in Life:
Loss of work Money Education

MAIN REASONS

AVERAGE

IN 2 5

OUT 21

Esc ape

7%

SUCCESS RATE

68%
Comes Back In/Relapses

60 25-40
AVG/majority

OLDEST

15

YOUNGEST

$
FACILITY

MIDDLE CLASS
Good family Background

Activities
Cleaning Nurse-patient interaction Karaoke Cigarette breaks Games Artworks Problem solving activities

Easy to distinguish

DOMINA Traits & Skills NT

Rehab Process
Varies Per

DOCTOR PATIENT

DOCTOR = FAMILY

RESLEASE

AS OF JANUARY 2014

Unemployment rate 3 Million People NCR 11.2%

7.5%

AS OF JANUARY 2014 Males (63.9%) Age group of 15-24 (48.2%) Age group 25-34 (29.9%)

AS OF JANUARY 2014

College Graduates(19.8%) Undergraduates(13.3%) High School Grads (34%)

Target Mar
2010: 90,361 total population (NCSB) First class income classification 2010: 67, 783 registered private vehicles (LTO) Estimated average increase of 1.39% per year (LTO) Target market for the business: individual car owners, insurance companies, and business enterprises (vehicles or fleet)

Relevant Market Siz


TOTAL PRIVATE VEHICLES IN SAN JUAN RATE OF ACCIDENT TOTAL ACCIDENTS PER YEAR 67,783 79% 53,549

CARS WITH COMPREHENSIVE INSURANCE CARS WITHOUT COMPREHENSIVE INSURANCE

4,326 cars 15,338 cars

TARGET SHARE RELEVANT MARKET SIZE

1.5% 803 cars

Insurance Companies Individual Car Dealers

Share of Business
10% 40%

Repairs and Repaint 50%

Market Segm
Run-of-the-mill auto body shop High-end body shops Casa

Market Characteristics
Brand new cars have 3-5 years insurance warranty = claims for repainting Expiration of warranty owners choose auto body shops Casa costs twice as much Car owners rely on the reputation or by word-of-mouth on the service and quality big chunk of customers are from insurance companies Insurance companies are responsible for providing these body shops with a steady flow of customers

New paint technology New materials Competition Lowering of price of competitors Increased buyers of secondhand cars New painting processes

A. To be able to capture a portion of the market by producing good quality paint jobs with lesser back jobs B. If I can provide a service of equal or better quality than Casa for a cheaper price, I would be able to gain control of a part of the market that opts to repaint their cars in Casa C. If I surpass my main competitors, like Auto Lab D. If I am able to get accreditation from insurance companies E. Retain the loyalty and skills of workers to gain confidence of the market

Consumer Usage Habits & Pr


Minor or major accident body shop or Casa for repainting Comprehensive insurance: minor scratch would be brought to a body shop of the customer or insurance companys choice Car owners acquiring a paint job even if there are no scratches or dents change the color of their car or because their car paint is too old Customers look for a reasonable price followed by the painting process Brand of the paint, the warranty, and the location are not really that important to them as long as they get a quality repainting service at a reasonable price

Competit
Good Wheels Auto Shop Along with 6 other auto shops in the area Average of 5 cars a day with a waiting line of 30 cars Catering to Class B & C

Good Wheels Estimated Market Share


Good Wheels Auto Shop 6%

Service Wash Over Per Panel

Price 30,000-40,000 3,000

Persoanl Painters 23% Other Auto Shops 31%

Casa 40%

Positioning and Stra


A quality body shop offering repainting and interior detailing services High quality at a lower price Tie Ups Insurance Companies, Government Agencies, Rehab Centers On-line, Forums, Car Shows
SELLING PRICE LESS: LABOR MATERIALS TOTAL COST GROSS PROFIT PANEL 2,500.00 375.00 375.00 750.00 1,750.00 WASHOVER 25,000.00 5,000.00 3,750.00 8,750.00 16,250.00

Sales Forecast
JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER 75,000.00 100,000.00 100,000.00 112,500.00 125,000.00 112,500.00 112,500.00 100,000.00 100,000.00 150,000.00 175,000.00 187,500.00

Operations Plan
Car Detailing and Painting

Service Specifications
The business specializes in painting, detailing and paint repairs for privately owned cars. Services include washovers and per panel painting
Washovers are also known whole body paintings Per panel painting includes paint repairs and painting of portions of a car.

Service sample
Before After

Standard costs

sedan
Pricing Standard Variable Cost: Labor Materials Electricity Others (Buffing Pad could last around 10 cars, wax, brill compound) Total Expense Contribution Margin Washover 25,000.00 5,500.00 6,000.00 500.00 500.00 (12,500.00) 12,500.00 Per Panel 2,500.00 400.00 800.00 100.00 100.00 (1,400.00) 1,100.00

SUv/pick-up/van
Pricing Standard Variable Cost: Labor Materials: Electricity Others (Buffing Pad could last around 10 cars, wax, brill compound) Total Expense Contribution Margin Washover 35,000.00 6,500.00 7,000.00 600.00 500.00 (14,600.00 ) 20,400.00 Per Panel 3,000.00 400.00 800.00 100.00 100.00 (1,400.00 ) 1,600.00

Monthly fixed costs

Depreciation Rent Salaries Utilities Total

10,388.89 20,000.00 25,480.00 2,000.00 57,868.89

Location: site/ viciniy

Supply chain

Material sourcing
Supplier1 : Dupont Automotive

Supplier 2:Project Accessories

Auto Shop

Custom er

Service Schedule
The auto shop is open from 8am to 5pm from Mondays to Saturdays Customers will be catered on an appointment service. Walk in customers will be asked to wait for available time slots and will be given queuing numbers. Services will be done for the day, any unfinished jobs will be continued in the succeeding days depending on workload.

Service flow diagram

Service writer will do a check list

10 mins

Apply sand paper on dent

5 mins

Place body filler mix hardener on dent


15 mins 1 hr

Apply sand paper after paint is dry

2 hours

Place a primer on the panel

30 mins

Apply sand paper on the whole panel

Paint with painting color

30 mins

30 mins

Apply top coat directly after color

28 hours

Apply sand paper on the panel

Service writer will check the work and do a check list

2 hours

Buff the car with brill compound

30 mins

Sourcing plans
The business will be having two suppliers (Dupont Automotive Paints and Project Accessories) Orders will be made upon agreement with customer regarding the services to be rendered. Generic colored paints for common cars (Altis, Fortuner, Civic, etc.) will be kept on stock for panel painting services.

Purchasing procedures
The business will be directly buying from the two suppliers for paint and other materials on 30 day credit basis or cash basis. The business will be bought as needed based on current supply and current service requirements.

Material prices

Quantity Material Paint Thinner Paint Color Top Coat Masking Tape Sand Paper #120 Sand Paper #240 sand Paper #600 Sand Paper #2000 Brill Compound

Unit Cost Per Panel 108.75 200.00 277.50 42.00 9.00 9.00 9.00 10.00 64.90

Cost per liter/ piece

Amount sold in store

Initial Purchase 25 liters per job 25 liters 1 box 50 pieces 50 pieces 50 pieces 50 pieces 5 liters

750 ml 200 ml 500 ml 6 rolls 1 piece 1 piece 1 piece 1 piece 100 ml

145.00 1 liter 300.00 300 ml 555.00 1 liter 7.00 1 roll 9.00 1 piece 9.00 1 piece 9.00 1 piece 10.00 1 piece 649.00 1 liter

Supplies Requirement schedule


Keep an initial inventory for common cars for panel paint repairs Paint will bought as needed based on colored agreed with client. Common materials will be kept in inventory as they will be needed regularly. Excess paint and thinner can be used for other projects.

Inventory management policy


Excess materials such as paint and thinner will be used for next projects or the next month. Ordering more materials from suppliers will be done when inventory left is only good for 2 washover or 26 panels of painting.

Organizational chart

Manpower requirement
Proprietor/Manager
Job Description: Keeps constant communication with workers Handles customer complaints In-charge of paying salaries and wages

Head Painter
Duties and Responsibilities: In-charge of painting the cars In-charge of making an estimate of how much the materials would cost

Manpower requirement
Paint Helper
Duties and Responsibilities: Helps the head painter in painting cars

Welder
Duties and Responsibilities: In-charge of molding the car back to its original state

Service Helper/ Security Guard


Duties and Responsibilities: Cleans the car after it is painted Stay-in/ in-house worker

Manpower requirement
Cashier
Duties and Responsibilities: Calls and checks-up on customer Keeps the receipts Records the payments and billings Duties and Responsibilities: Receives the customers that enter Estimates the work that needs to be done Handles the customer complaints Re-checks the painters work Helps in deciding if a back-job is needed

Service Writer

Shop layout

21'-9"

2'-3"

2'-6"
5'-0" 2'-4 1/2"

16'-6"

1'-0"

SHED

16'-9 5/8"

10'-0"

3'-3"

2'-7 11/16"

16'-6"

EXISTING BUILDING

Manning schedule
Time 7:30 8:00 Service Writer Service writer will arrive in the shop and check the unfinished jobs. Cashier Service Helper Cashier will arrive Service helper will arrive and clean the shop. Service helper will detail cars. Lunch Break

8:00 11:30

Service writer will Cashier will call attend to and check up on customers. customers Service writer will Lunch Break attend to customers. Lunch Break Cashier will prepare checks needed

11:30 12:30

12:30 1:30

Service helper will detail cars.

1:30 6:00

Service writer will Cashier will collect Service helper will attend to bills and receipts detail cars and will customers purchase the materials needed. Service writer will Cashier will do a double-check what sale summary works are done and need to be finished Service helper will clean the shop.

6:00 6:30

Equipment/assets

Construction costs
Renovation Office Renovation Cost 250,000.00 Useful Life in Yearly Years Depreciation 3 83,333.33 Monthly Depreciation 6,944.44

Furtnitures

Quality control measures


Since the materials and supplies that I will be using will only bought every time there is job, it can be easily controlled since we would only have to buy the materials needed. The service helper will be the one in-charge of buying the materials needed by the painter. In order to control the quality of my product, the service writer will double-check if the newly painted panels match the original ones. The service writer will be the one to notify that head painter if ever he finds any mistake in the paint. If ever there are any impurities spotted, the head painter and the service writer will notify the proprietor, and he will be the one to decide on what to do. If ever there any differences in the paint of the car, a back job would be done so not to disappoint the customer.

Customer service procedures

Customer arrives for services Notify customer Customer is warmly greeted

Customer departs

No

Customer pays bill

Customer requests for service

Service writer will give an estimate Notify customer that car is ready

Can service be done and does customer approve?

Yes

Perform required work (check process flow diagram)

Prepare Invoice

Yes Service writer will doublecheck work

Back-job

No

POSSIBLE RISK My painter or welder gets sick.

Risk Analysis

SOLUTION We would have a back-up painter and welder that would be able to fill in for them only for that day. My employees short-change me. We will list down the common cost of the materials needed per panel and washover. I also have knowledge on the cost of these materials because my father has prior knowledge about the costs since he has been in the car industry for many years. My customers dont have the money to We wouldnt release the cars of my pay for the paint job on time. customer until I am fully paid. I will do this so that I wont have to run after these customers. Insurance companies want to pay But when it comes to dealing with later. insurance companies, I will ask them to pay 50% of the job as down payment. I will collect the rest of the sum after 30 working days. Customer complains that a part of his We created a checklist that I would use car is missing. in order to make sure that no part of the car is missing. This checklist would also serve as evidence if ever a customer complains that his car has some missing parts or kits.

Financial plan
A starting capital of 600,000 pesos is needed to cover the all the necessary equipment and cost needed to run the business Depreciation of equipment is by 5 years For the 1st year we will only have 1 employee that will be paid 350 pesos per day For the 2nd year we will have another employee that will be paid also 350 pesos

Financial plan
Payment to supplier will be with cash Payment of customers will also be with cash

Impact

Conclusion