JusBin

Lean Start-up Management

(MGT1022)
TE1 Slot Winter Semester 2019-20

J Component Project Report

Review 3

Submitted by
Chandra Teja. P (17BIT0294)
Sai Karthik. G (17BME0525)
Naga Praveen. N (18BME0586)
Kishore Suryavamsi (17BME0142)
Chakradhar Abhinay. M (17BEC0036)

Under the guidance of

Dr. DEGA NAGARAJU

June 2020
 CONTENTS

ABSTRACT

1. Executive Summary iv

2. Business Description 1

2.1 The Industry 1

2.2 The Company & Our Product 1

3. The Market 5

3.1 The Competition 5

3.2 Our Customer & Position 5

4. Management 7

4.1 Organization Structure 7

5. Development and Production 9

5.1 Development Status 9

5.2 Production Process 10

5.3 Labor Requirement 11

5.4 Cost of Production & Development

12

6. Sales and Marketing 13

6.1 Pricing 13

6.2 Sales and Marketing Strategy 13

6.3 Method of Sales 14

6.4 Advertising & Promotions 15

7. Financials 16

REFERENCES

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 CERTIFICATE

This is to certify that the project work entitled “Jusbin” is a record of bonafide

work carried out for the fulfilment of J component of the course Lean Start-up Management

(MGT1022).

The contents of this project work, in full or in parts have neither been taken from any other

source nor have been submitted for any other CAL course.

Place: Vellore
Date: 07-06-20

Signature of the Students:

CHANDRA TEJA. P 17BIT0294

SAI KARTHIK. G 17BME0525

NAGA PRAVEEN. N 18BME0586

KISHORE SURYAVAMSI 17BME0142

CHAKRADHAR
17BEC0036
ABHINAY. M

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 ABSTRACT

In the recent decades, Urbanization has increased tremendously. At the same phase there is an

increase in waste production. Waste management has been a crucial issue to be considered.

This paper is a way to achieve this good cause. In this paper, smart bin is built on a

microcontroller-based platform Arduino Uno board which is interfaced with GSM modem

and Ultrasonic sensor. Ultrasonic sensor is placed at the top of the dustbin which will

measure the stature of the dustbin.

The threshold stature is set as 10cm. Arduino will be programmed in such a way that when

the dustbin is being filled, the remaining height from the threshold height will be displayed.

Once the garbage reaches the threshold level ultrasonic sensor will trigger the GSM modem

which will continuously alert the required authority until the garbage in the dustbin is

squashed.

Once the dustbin is squashed, people can reuse the dustbin. At regular intervals dustbin will

be squashed. Once these smart bins are implemented on a large scale, by replacing our

traditional bins present today, waste can be managed efficiently as it avoids unnecessary

lumping of wastes on roadside.

The idea struck us when we observed that the garbage truck use to go around the town to

collect solid waste twice a day. Although this system was thorough it was very inefficient.

For example, let's say street A is a busy street and we see that the garbage fills up really fast

whereas maybe street B even after two days the bin isn't even half full. This example is

something that actually happens thus it lead us to the ''Eureka'' moment!

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 Chapter 1
Executive Summary

JusBin aims to introduce smart technologies to improve waste collection methods and reduce

its manual effort required. Inspired by real life working experiences and as frequent diners,

the SmartBin was created to alleviate difficulties faced by cleaners as they manually compact

and replace rubbish at fast food outlets.

A survey was conducted amongst cleaning staffs and we found that they faced the following

difficulties in their course of work as enumerated:

a) The current tool used for crushing and compacting waste was inefficient and requires large

amount of effort to effect significant volume reduction

b) Manual checking of each dustbin have to be carried out by staffs to know if the dustbins

are full and are in need of replacement

The SmartBin provides a comprehensive solution to the above problems with additional

complementary features. We propose to present the SmartBin in three financial phases:

A pilot project with a ₹3,50,000 start-up.

Additional capital from sponsors and crowd-funding of ₹7000000:

a. Purchase of addition equipment required for effective production

b. Training and hiring of production personnel

c. Developing the market through collaboration with fast-food chains to introduce the

SmartBin

d. Sales and marketing enhancements

Increasing sales, production and reach

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a. Automate production process

b. Expansion of marketing strategies globally

Furthermore, up to 20% of revenues earned after Phase Two will be spent on research and

development of new products and innovations. 10% of profits will be returned to investors.

JusBin aims to optimize logistic resources in the waste management industry by improving

efficiency, and reducing collection and delivery costs.

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 Chapter 2
Business Description

2.1 The Industry

Integrated waste management systems are on rise in recent years. Fuelled by growing interest
in the Digital India Initiative, info-comm technology along with its networks and data
continually strives to support better living and more efficient solutions for a wide range of
day to day activities. As an important part of a Swachh Bharat Abhiyan initiative, “smart”
waste management solutions were highly sought after by authorities. Opportunities and
support from the Initiative in the waste management industry fosters a healthy environment
for growth, with increasing focus placed on the greater use of communication and sensor
technology in the field.
Furthermore, there are growing trends of foreign companies from South Korea and Ireland
that have also worked towards providing innovative technological solutions to tackle waste
management problems. This goes to show the potential growth in the burgeoning market in
India and beyond.

2.2 The Company & Our Product

Company
The main objective of starting our company is optimizing logistical and manpower resources
in waste management by improving waste collection methods and operational efficiency.
It is our company’s aim to be the leading provider of smart technologies in the waste
management industry. With the technical expertise of our team of innovative engineers and
designers, we plan to introduce a series of reliable, affordable and relevant products that
would meet the needs of our customers. Embracing the latest sensor and communication
technology, we keep ourselves at the forefront of science and technology to ensure our
competitiveness within the industry.
On top of our economic pursuits, our principals hold strong beliefs in improving working and
living environments. In keeping our living environment clean and green, we aim to bring
about positive change to key public and commercial issues in terms of waste overflow,
collection and management.

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Product
The JusBin (SmartBin), is a low-cost, low-maintenance comprehensive dustbin solution
aimed towards food and beverage (F&B) outlets and fast-food chains. The integrated bin
combines varying concepts aimed at easing physical workload of cleaners, manpower
management and also in design and aesthetics.
It consists of 3 main design components: the crushing mechanism, the optical sensor and the
networking system.

Trash Compactor
Our mechanical trash compactor is able to provide between 30-40% of volume reduction of
trash within the bin itself. The lever mechanism allows cleaners to use up to 50% less force as
compared to traditional methods of vertically pressing rubbish using a compacting stick.

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The design of the compactor system is such that it is able to be kept in a neutral position that
does not impede rubbish disposal into the bin itself. Furthermore, swinging handles are
attached to the compactor arms to provide a safe and solid grip for cleaners to hold on to
whilst compacting trash.
Due to high volume and frequency of compaction required in the F&B industry, a fully
automated compaction system that runs on solar or AC power will be impractical due to cost
and power requirement constraints.

Optical Sensor
An optical sensor will be installed at the top of the SmartBin which will detect the bin’s fill
level in real-time. The sensor is programmed to send out two signals when the fill level in the
bin is more than 80% full. Firstly, it activates a blinker light on the exterior of the bin to show
that the particular SmartBin is near it full capacity. Secondly, it sends a Wi-Fi network signal
to our main server, which use will be explained in the next section.
Our optical sensor is easily detachable from the SmartBin itself for maintenance and
installation. It is also user friendly in that retailers can set their own notification fill level to
maximize their operational efficiency. The sensor battery can last for 5 years.

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SmartBin Network
As each SmartBin optical sensor will have a designation number, the SmartBin network
connects many SmartBins into a centralized “war-room” style system that displays the
conditions and fill level of each and every bin within the network. With real-time
information, managers are now able to efficiency deploy manpower towards specific bins for
compaction or for replacement. This will significantly reduce the time spent by cleaners
walking around checking the condition of every bin and allow them to be more productive
especially during peak periods and in rush hour.

The network Graphic User Interface (GUI) is easily understandable and will be compatible
with existing computer systems. Furthermore, the network is also pre-programmed to be
compatible with smartphones in the form of Apple and Android applications. Notifications
can be sent to the managers or cleaners smartphones to know where and when a trip down to
the dustbin is required.

Other Design Features

The basic exterior design of the SmartBin is aesthetically simple and unobtrusive. However,
customers can request for specialized and customizable designs to be wrapped around the bin
for marketing, advertisements or interior design purposes.

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 Chapter 3
The Market

3.1 The Competition

In the current market, our main competitors are companies that are also developing smart
waste management solutions. Amidst the growing environmental awareness movement
globally, it is evident that there are inherent inefficiencies and wastefulness of current waste
collection methods, whereby innovators have leaped at the opportunity to provide effective
solutions.
There are a few companies like Clean CUBE who are currently in trial phase due to their
exorbitant costs.

They have design principals based on aesthetics and user-friendliness, rather than operational
efficiency of the cleaners themselves. As such, our products will focus on meeting the
establishment’s needs, providing solutions for their operational and managerial problems on
top of meeting their basic expectations.

3.2 Our Customer & Position

Target Customers
Our primary market for our products is for F&B outlets and fast-food chains. Food waste
accounts for 21 million tonnes in India per year. INR 50,000 crores worth of food produced is
wasted every year in the country.
Through a comprehensive market research ranging from past working experience of
Principals to surveys with the workers and management personnel from F&B establishments,
we have identified key areas that have pertinent issues to be addressed.
• Rubbish bins fill up quickly especially during peak periods, leading to trash overflow if not
compacted or replaced.
• Manual checking of each dustbin has to be carried out by staffs to know if the dustbins are
full and are in need of crushing or replacement
• The current tool used for crushing and compacting waste was inefficient and requires large
amount of effort to effect significant volume reduction.

F&B and fast-food outlets usually face a shortage of manpower during peak periods. The
employment of more manpower for these brief periods of high demand will not be

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economical as it leads to overstaffing for the rest of the time. Hence, an effective and cheap
solution to make trash collection more efficient will be needed for outlets to satisfy both
consumer demands and yet keep costs low.
Furthermore, it is of note that in some establishments, elderly cleaners are employed. This
gives rise to the need of a solution that requires less force and human effort to help the
physically weaker employees in fulfilling their job.

To summarize, our primary customers would be looking at these factors for consideration for
their rubbish bins
a) Price of bin – purchase and installation
b) Efficiency, organization, effort – manpower and time saved
c) Low maintenance required and its associated costs, ease of use
d) Hygiene and Design – unobstructed and aesthetically pleasing

Our Position
We aspire to be the leading provider of reliable and affordable waste management solutions
in the region. As part of our niche, we are working together with Food and Beverage outlets
across the country to identify, address and simplify the myriad of issues faced in their waste
management operation.

Innovation, technology, reliability, affordability, durability and user-friendliness are core

qualities that we strive for in our products. The experienced management and design team is
driven to deliver products of high quality assurance and design innovation.

The products we develop will aim to balance the role of cutting-edge technology and cost
effectiveness in our attempt to improve on and replace the existing bins used by most food
retailers. It is our belief that though advanced technology in our products may provide the
most practical appeal, simple mechanical solutions in products of a much lower cost will be
more appealing to the economically and financially conscious.

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 Chapter 4
Management

4.1 Organization Structure

Hierarchy of the Administration

Chief Executive Officer (CEO)
As the highest-ranking executive, his main responsibilities include developing and
implementing high-level strategies, making major corporate decisions, overseeing all the
departments and managing the whole organization to ensure things are going smoothly and
on time.

Operations Director (OD)

Accumulating knowledge and experience of business process and operations from his
internship, OD will oversee the ongoing business operations within the company. He has to
report to the CEO and is the second-in-command within the company.

Chief Finance Officer (CFO)

Has to manage the financial risks of the corporation. Furthermore, he is also responsible for
financial planning and record-keeping, as well as financial reporting to higher management.
Moreover, his good analytical skill in breaking down the risk and profits of the company will
ensure the sustainability of the business.

Chief Marketing Officer (CMO)

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Leading the sales management, product development, distribution channel management,
marketing communications, and many others. CMO is responsible for all the marketing
activities in the organization.
Human Resource and Administrative Director (HR)
With his responsibilities being to maximize employee performance in service of an
employer's strategic objectives and to manage administrative related works, HR has to cover
the different aspects in the company such as job design and analysis, workforce planning,
recruitment and selection, training and development, and performance management.

Chief Product Officer (CPO)

The main role of the CPO is to be in charge of all product related matter. Tend to work
closely with the CMO to enhance on the sales of product via improvising the products
according to the response received from the marketing team.

Project Manager (PM)

Having the overall responsibility for the successful initiation, planning, design, execution,
monitoring, controlling and closure of a project. PM has to work tightly with all the other
departments in order to produce the product in the required timeline.

Informative Technology Manager (ITM)

ITM is assumed the task of implementing and maintaining the organization's technology
infrastructure. ITM should be equipped with various computer programming knowledge,
gripped with a better understanding on the aspect of information technology. In times, ITM
will also be assisting the Project Manager in the creation of new products for one who has
been credited in project he has accomplished.

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 Chapter 5
Development & Production

5.1 Development Status

Before proceeding to the Phase one of the financial plan, a prototype will be created to
stimulate the functions of the SmartBin to provide an interactive visual platform when
demonstrating to the consumers.
The prototype has been made of different materials from the actual and to a smaller scale for
the ease of transportation between the factory and the school, as well demonstration of the
crushing mechanism within the product, the prototype would be produced with rectangular
wood blocks for its structure, and covered with transparent acrylic sheet.
The crushing mechanism for both the prototype as well as actual product would still be made
with metal rods and bars to provide accurate measurement of the crushing force available and
degree of movement/motion of both the lever and crusher.
The development of the product has been as shown in the following Table.

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5.2 Production Process

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5.3 Labour Requirement
For now, the company has not planned for any recruitment during the Phase 1 section
whereby the consumers only involve university fast food outlets. The company will only
begin its hiring of new employee when the company proceed to Phase 2 of the plan as the
company expand its reach to nation-wide fast food outlets. Hence cost of labour for the
current state will be $0.
As the company expand, production, finance, marketing and sales as well as human resource
department will have to hire new employees to manage the increase in workload. Since the
company is a start-up company, employees of basic experience will be look out for to cut
down the need for trainings.

For production personal:

• At least 1-year experience in the production line
• Team player
For financing personal:
• Accounting skills
• Organizational skills
• Planning and time management
For HR personal:
• At least 1 year of HR experience
• Friendly and good communication skill
• Organizational and Time management skills
For marketing personal:
• Able to adapt to new situation fast
• Creative and ideas generation skill
• Experience or knowledge on Marketing
• Able to communicate effectively and deliver message clearly

Two weeks training will be provided for HR personals and production personals to allow
them to understand the company structures and production process. All new recruits will be

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given a one day workshop to emphasis on the company working principle as well as to
provide a detailed information of the company products.

5.4 Cost of Production & Development

As mentioned in the development status, the prototype of the company is smaller in scale and
make use of different materials for the ease of demonstrating and transportation. Following is
the breakdown out the cost of the prototype:
Material/Process Cost
Bin 450 rupees
Rectangular Lumber 150 rupees
Adhesive 450 rupees
Steel Hinge 300 rupees
Sandpaper, Sponge Sander 450 rupees
Board 1100 rupees
Equipment 750 rupees
Total Expenses 2650 rupees

For the actual product, the estimated cost of production will be as projected in Table below

Material/Process Cost
Cost of material (Metal) 13,000 rupees
Labour and Manufacturing Overhead 12,000 rupees
Optical Sensor & Networking 15,000 rupees
TOTAL COST 40,000 rupees

The cost is based purely on the production of one unit of SmartBin. The cost of each
SmartBin can be possibly lowered to much lower than $570 as the company approach mass
production in the future. Cost reduction due to economy of scale and overhead can be
distributed across more products. The company will liaise with different company to further
cut down the production cost.

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 Chapter 6
Sales and Marketing

6.1 Pricing
The pricing policy that JusBin used to determine its product pricing is the penetration pricing.
This means that the company set a lower price relative to the competition to capture market
share.
As mentioned previously, our targeted primary customer will be F&B outlets with a high
sensitivity to price of our products. The price of current products currently in the market
available for our customers is taken into account for our pricing strategy. Considering that the
SmartBin will be the first of its kind in the F&B industry, along with the improvements it will
bring to waste management and collection for each business, we will be charging a
reasonable price of $700 or 55,000 rupees per SmartBin.

6.2 Sales and Marketing Strategy

For the first phase and second phase, the company will be using the direct marketing
approach that comprises of direct email, telephone solicitation. Emails of the brief proposal
will be send out to the various targeted universities and fast-food chains with a follow up
telecommunication.

-> Direct Marketing

Alternatively, JusBin can engaged in the door to door approach which means that we will be
visiting the targeted company to propose our ideas and product. It will be a good way for us
to get direct contact to our consumers and understands their needs as well as answering to
their doubts.
Moreover, the company will be actively participating exhibition events to get into interaction
and reach out to potential customer.
The main advantages of the SmartBin are space saving and the efficiency of waste collection
at a much lower price, thus it will also be featured in the proposal.
In the future prospect, as the company expand its reach to the other markets such as indoor
office company and even small cafeteria or F&B stores. An online retail store can be created
to encourage individual to purchase our products at their own convenience.

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-> Indirect Marketing
JusBin will be engaged in various social media platform to provide a more informative yet
engaging content that attract the attention of the consumers. Visual service such as Instagram
will be able to give visual impact to the consumers. Positive interactions through social media
will also bring in potential customer.
For now, the company aims to expand our reach nationally before considering about
expanding the company globally.

6.3 Method of Sales

There are two types of distribution channels in which JusBin can get our customers locally.
These distribution channels will help our company get our product into a variety of channels
where we might not be able to reach ourselves.

• Direct Distribution
Beginning with a smaller market, the company will be accepting direct orders via email order
selling. The targeted consumers will receive our company proposal and order information
will be provided in the proposal as well as the company website. Thus, consumers can email
us directly with regards to their orders. Upon receiving their orders, payment and
confirmation emails will be send subsequently to inform consumers that their orders will be
proceeded and delivered as requested.
As the company grows, an online retail store will be created. Consumers will be able to
proceed with direct orders with the company with delivery services provided by the company.

• Indirect Distribution
Although it will less likely be used due to the small market we are aiming currently, the
company will consider about selling the products to a wholesaler or straight to the retailers to
make the products available to consumers. This distribution channel will mostly likely to be
engaged after the company has expand its market nationally.

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6.4 Advertising & Promotions

As mentioned in the Sales and Marketing Strategy, direct marketing approach will be
engaged to send proposal of the company products. On top of that, the company will also
continue to send emails to update about the company’s new products as well as for any
ongoing promotions. Direct mailing which involves sending of advertising fliers, pamphlet
and catalogues to customers to update them as well as to attract more potential customers.

Another well received method is the use of social platforms. Facebook, Twitter and even
Instagram. This social platform will help to increase the awareness of the company and its
products and attract new potential consumers with engaging visual content.

A company website will be set up to allow consumers to get a clearer understanding of the
company and its upcoming products. Before having access to the website, a video will be
automatically played to showcase the SmartBin or even the other new products. Visual
sharing provides a clearer picture and understanding to the products, thus allowing the
consumers to capture the special features and highlights of the company even before entering
the website.

As for the promotion aspect, loyalty incentive will be provided to return consumers for the
corporate side. A sample of the new product can be sent to the consumers and discounts will
be given for bulk purchases varying with the number of products purchased. The records of
the consumers will be use to keep track so that when an online retail store is created, the
return customers will be provided with a personal account thus allowing them to make their
orders at a cheaper rate.
Several promotions that can be given occasionally in times like seasonal events or company
anniversary will be taken into considerations in the future after the company has been
nationally recognized.

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 Chapter 7
Financials

Initial Expenditure

Registration of Company 100000 rupees*

-> Business Incorporation Package:
Business Licenses, Company Incorporation
Services and Registered Address
-> Company name registration and seal
-> Corporate Bank Account
Rental and facilities 1500000 rupees*

Operating Cost 750000 rupees*

Insurance 300000 rupees*

Marketing 200000 rupees*

Research & Development 1000000 rupees*
Miscellaneous 500000 rupees*
TOTAL STARTUP EXPENSES 43,50,000 rupees*

*approximation

Assumptions Made
• All projected amounts are in whole number.
• All goods are sold as projected
• A strong economy, without major recession
• No allowance has been allowed for inflation.
• There are no unforeseen changes in economic policy to make our clients' products
immediately obsolete.

Running Expenses and Maintaining Expenses

The company will be expecting losses over the upcoming three years’ time as our expenses
are higher than our revenue. As projected in Budgeted Profit and Loss Table, there will be a

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net loss of ₹3,17,50,000 in the first year prior to startup, and a gradual decrease of net losses
over the next two years.

Objectives of the Business

We have established our financial needs of net ₹8000000. We believe that the initial funding
of ₹8000000 will be sufficient to carry JusBin through to initial profitability. These financial
needs will be met through a crowd funding of ₹7000000. Even though the projected profit
and loss for the upcoming three years indicates that the company will still incur losses. The
company anticipated at least 15-20% of net return sales after the initial years of operations.

Furthermore, with this level of performance, we anticipate expanding our market outside the
state, to the nearby states after 5 years.

Break-Even Analysis
A break-even analysis is a financial tool which helps you to determine at what stage your
company, or a new service or a product, will be profitable. In other words, it's a financial
calculation for determining the number of products or services a company should sell to
cover its costs (particularly fixed costs).

There will not be any break even occurring for the initial 3 years of operation of the company
as projected in the profit and losses. If the sales of product are going along as predicted,
breakeven point will happen in the account year of 2022-2023.

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Hence Jusbin will become an ideal candidate for public stock offering should the plan take
off as anticipated with 10 % of the profits return to the investors.
Investors can opt for either cash-out option or stop-loss order if the company will to make
any continual losses failing to meet the expectations.

SUMMARY OF BUSINESS PLAN

CONCLUSION
JusBin offers several advantages to the other products available in the market. Our product
focuses on providing this product with maximum efficiency and reduced costs. With
increasing market share, we will focus on private households to meet the required sales for
our product. Future prospects of this project may extend to startup a new business to sell this
product.

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