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BUSINESS FEASIBILITY

STUDY
Rock-tees Company
Members:

Muhammad Alvicky

(1210534006)

Wahyunda Risa Putri

Shabrina Alin Firstiana (1210534010)

Muhammad Irhas Ervan (1210534027)

(1210534008)

Lecturer : Asmi Abbas, SE., MM

Andalas University

BUSINESS FEASIBILITY STUDY

Pictures

Rock-tees Company

BUSINESS FEASIBILITY STUDY

Table of Content
Cover
Table of Content
1.Background.1
2. Aspect of Business Feasibility Study
2.1 Market and Marketing.7
2.2 Technical and production..12
2.3 Legal Aspect..20
2.4 Management and Human Resources.26
2.5 Environmental Aspect..34
2.6 Financial Aspect...43
3.Conclusion...49
Bibliography

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50

Our BUSINESS IDEA


The following questions are designed to assist our company in the development of our
business idea, our vision for the future of the business and to detail the expertise that our
company bring to our new business venture.
What are our reasons for wanting to start our own small business?
The reason why we choose the clothing line industry because it can fulfil the demands of
each rockstars fans that do not know what they should wear when they want to go to concerts
or met gala which has purposed to meet and great with their artist or musician. Its also rare
industry because in fashion industry itself , they haven't specific producer that produce this
clothing line and they also sell common motive and patterns for teenagers or fans of its
artists.
We also do surveying in Indonesia about rock star tees seller is so conditionally
selling their product in the concert as merchandise or souvenir and conclusion is we can sell
this product by online or e-commerce selling , we also want to expand our stores in the big
cities in indonesia , and, we want to sell in the concert as merchandises too. Another reason is
the customer have different taste or their own style , and if they cant choose what we offered,

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so they can custom their own design and patterns and we also provide good qualities, great
materials and also provide locally qualified designer made in indonesia
What are our Vision ?
Indonesia rock star fans need original product fashion made in Indonesia, and own by
Indonesia. This product represent Indonesia our companyng-age creativity and productivity.
Indonesia rock star mostly are creating their song base on reality that happen surrounding
them, including social issu, politic issue, and economic issue. With this product we can made
an original symbol of Indonesia culture.
What are our objectives for our business over the next twelve months?
1. to be increasing our sales over 100% in indonesia
2. to be having branch relationship and distributors in Indonesia at least 5 big cities
3. to be decreasing pure defectives product around 10%
4. to be reducing customer complains with our product and services
5. to increase financial performance at least 5% from starting point
6. to enhance creativity and engage people to be productive
What are our objectives for our business over the following two years?
1. to be increasing Sales around 200% in Indonesia
2. to be having at least 3 branch stores all around indonesia
3. to export our product at least in Pasific Asean sectors
4. to decrease pure defective product around 20%
5. to increase financial performance at least 15% from starting point and 10% from previous
year
6. to improve and develop new design and products

Key to Success
1. Variety pattern and provide high qualified printed design as a competitive advantage.
2. Team numbering and lettering capabilities (as well as the ability to provide complete
uniform packages) allow us access to the lucrative sports teams and society printing .
3. One of the most important factors in building a successful t-shirt business is the ability to
stand out from the many competitors and one of the best ways to do that is by choosing and
catering to a specific niche. In general, categories like t-shirts with Rock style and funny
words are going to be too broad to attack in a very developed market. Being more specific
will help us stand out as well as better attract and market to the right audience
4. Exceed customer expectations by offering high quality products at reasonable prices with
quick turnaround times.
5 . Employ careful financial and accounting analysis to ensure efficiency and proper controls,
and because we are from accounting major so we implementing our skills and knowledges to
develop our financial skills
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6. A strong, interesting brand is vital in the t-shirt industry. Our brand is a promise that will
tie together all our choices including our niche, designs and quality. we are do Building a
unique and likeable brand is important for businesses in a high competition industry and also
try to in the right tracks . When customers have more choices, it becomes extremely
important for an ecommerce business to have a distinctive presence to capture customers'
attention.
7. We provide the reseller and spreading our distribution and relationship in Bandung as way
to improve our promotion and try decrease cost of production and reach effectiveness

Our BUSINESS IDEA cont.

List all the products and/ or services that our company plan to provide at the
commencement of the business.
Rock Tee
Vest Rocka
Printed Shirt by customer choices
treasures
Snapback
List all the products and/ or services that our company plan to provide in the future.

- Ring and Symbol Necklace


- Bags
Short pants
Skate board
docmart
Also services world wide shipment

Who will operate the business?


business will be taken care by our our companyng business man and women,
they have many idea and ambition to keep this business growing up. this
business really suitable for our companyng entrepreneur because we really
know what our customer expectation and desire about the product. and also
as entrepreneur and marketer of rock star fashion we met the demand for
high quality rockstar product to our customer who be fans of indonesia
superstar musician. And we have joint to students that wanna involve with
our business well too.

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who will operate the business in the future?


our future expectation about this product is create a trend center for rock
star fashion. in the future people will know this product as mark of rock star
musician fans. our business will be growing up tilll international market. all
the world want to wear the product. and every one can have this product. as
a big business the company need professional board directors and run the
business on the right track. it will be a multinational company and listed on
stock market

THE SWOT ANALYSIS


1. strength
Include as strengths any formulas or policies our company uses that give it an edge in
name recognition, brand positioning and bottom-line revenue. For example, many designers
have two avenues of distribution, a couture line and a ready-to-wear, off-the-rack line more
accessible to buyers with average incomes. This is a strength because it allows the designer's
name to reach a larger audience of potential customers and the brand to make more sales.
strengths are:
-Apparel for men and women
- Reasonably priced at outlet stores
- Preppy clothing
Competes well in the high middle class range and up
Variety of collections to appeal to a broader range of customers (current and potential)
Internet website where garments sell out quickly making shopping accessible to every

body also international customers. Here our company can buy key garments for the season
and see the latest trends. Also offering podcasts of new collections and behind the scene
events, thus keeping up with the new technology and creating good PR and generating
more sales.
They offer a student discount because a majority of their target market.
-Has a wide range of garments and home accessories

2. weakness

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Consider as weaknesses any unusual or unnecessary costs, unknown designers or lack of


presence in a particular region like as:
-Can be slightly pricey sometimes
-Doesn't have a wide range of clothing options
-Doesn't have enough outlet stores around Indonesia
3. opportunities
watch for the repeal of trade embargoes, a new or newly accessible source of raw
materials such as fabric or thread or a newly green source of raw materials like sustainable
natural fabric fiber. We were inaccessible as a source of labor, supply or export sales due to
inter-governmental tension and its fundamental attitude toward commerce. However, recently
we have loosened commercial restrictions and has become a more open source for labor,
materials and import/export commercial transactions. Technological advancements in
machinery are also opportunities when the technology makes production or distribution faster
or increases its scale, such as machines that cut more garment pieces at a time.
Rock tees could be an extremely hot commodity nationally
Try to appeal to a slightly larger audience
Our companyng group of designers who are always designing clothes in line with the

changing fashion
association with celebrities - creating fame and attachment to brand
affordability and choices might make survive the recession
4. threats
Politics and economies are primary sources of threats to a brand in the fashion
industry. Trade embargoes, political unrest in an area of raw material supply and economic
downturns that lead to restricted consumer spending are all threats to the accessibility of raw
materials, brand exposure and name recognition, distribution and consumer purchasing, in
case :

Competition from new entered foreign bands that offer very fast fashion styles at even
more affordable prices

Negative impact on celebrity endorsement campaign - debate on celebrity choice

There are so many brands that have the same level, and is hard to compete with all of
them.
Threats:

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Changing the style too much could push loyal shoppers away.

Reducing the prices too much may the product less desirable.

How much The prices ? (in IDR)


Rock Tee - 85,000- 200,000
Vest Rocka- 175,000 ( We retailer from our partner)
Printed Shirt by customer choices- 90,00-200,000
treasures- 250,000-400,000
Snapback- 180,000 ( We retailer from our partner)
Where is the Places?
Andalas university PKM, collegian camp, culture park , the concerts ,official our
webstore, and distro our friends like franchise business.
How about the Pomotion ?
- Promote by Indonesian rock star
- by website promotion and Social Media
- Advertising via Mass Media like as magazine and campus newspapers
- giving brochure and sponsorship
What About the Process?
The procedure for making this products is we survey the pictures and model that
customer want to buy and what the current rock styles that teenagers needed now and we buy
the material from the supplier with the good qualities and we choose the model , colours and
also the sizes . For the customer who want to custom their own tees, they must send their
style or design and motives by email with HD pixel because if they send just standard size of
pictures it could be blur or bad result so to avoid this defect units we also provided high pixel
and choosing the size from the customerss body or additional words if they wanted to
;After that we printed the pictures into the tees with those inks and motives and we dried it to
the sunlight in one day . After that we neatly ironing the clothes before we pack to the
customers. we also open pre-ordered or ready stock to the customers all around indonesia.
After the customers paid the money to our bank account and knowing about their address ,
we ship the products to the customers address. The range day of the process is around 3-6
days depend of high or low peak seasons itself.

The Analysis of STP


Segmenting
We divided this segmenting analysis into two distinct groups .the two segments are
grouped by the type of product they chose. even though we are dividing the market by

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product type, it is effectively dividing the market by age, economics life style as well since
the customers who purchase the custom artwork shirts tend to be older than the group
preferring the ready-made graphics. While this is not a hard and fast rule, it is a fairly
accurate generalization.

Rock T-shirts and Accessories : This segment concern about the group purchases
a shirt with the motive as rock pattern and punk rock motives which we can
reflected by rockstar and model ;and has an existing graphic placed on the shirt as
follows:
Culture = Rock musicians were also early adopters of hippie fashion and popularised such
styles as long hair and the Nehru jacket. As rock music genres became more segmented,
what an artist wore became as important as the music itself in defining the artist's intent and
relationship to their fans .
Age = 15years- 25 for students
= 25-35 years for office Workers
Motivation to buy =50 % are using the shirt as a form of communication for a
cause or a message as they are a fans of Rock stars itself
Economics= Median individual income Rp. 500,000 per month
Life style = customer that likely to hang out and attending concerts

Printed T-shirts and Accessories : This segment prefers having custom artwork
created and placed on their shirt. They generally have the image or style in mind
and will direct the artist to create it. Occassionally when the customer will not
have an exact image in mind but will rely on the artist's skills to help shape the
work.
Motivation to buy = our target market here like the people who always creatively making
some clothes by themselves and anti-mainstream teenagers
Age = 20- 45 years
Economics= Median Individual Income Rp. 1,000,000 per month
Class= middle-up class range in their social life

Market segment

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Targeting
Our target market is every one who love music and know about Indonesia music, they
rockstar fans and rock star fashion holic and specifically is student and teenagers in Padang,
West Sumatra . they are Also skateboarders and punk rockstars fans . This fashion are likely
a uniform for any band and rock star fans. But, in E-commerce sectors like online shop we
provide the all teenagers in Indoensia. There are millions people of Indonesia being fans of
hindi band, rock band, including solo rockstar. Celebrity or public figure are mostly being
model by a lot of people, public figure represent culute, mode , and fashion trend. Because of
this reason this product make target market from people who hypnotize by this phenomena of
celebrity and want to follow culture from music and they fashion interest.
Positioning
The point of our product positioning is getting closer to the target customer, directly
adapt with consumer, purchasing power, and influence factor that make us achieve the target.
Base on market frame we only have small problem with the competitor and subtitle
product. It happen because our product have strong character and uniqueness that can not be
competed by other product. For small chance and trait in the market , we must face some
unoriginal product that disturb our market and decrease product image.
Base on value our product have greet position on market place, our product have
value that will fulfill the customer satisfaction. It is function-able, economic supportive
product, and enhance emotion with pride from this enormous product.

Technological and Technical Aspects

General overview of our technologies with comparative evaluation


versus other similar processing options
As the price of modern technology continues to fall, aspiring designers
are finding it increasingly possible to produce small quantities or even individually
designed printed T-shirts. A T-shirt design business can be a part-time venture for an
additional source of income. It can also be a full-time career where our companyre in
charge of our own work, and prosperous work at that. Digital printing is not a heat

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transfer or appliqu. With digital printing, we take our design straight from the
computer and print it directly onto our garment. We've got this method down to an art
form, which means that even photographic images can be reproduced in all their
glorious detail.
Screen printing involves creating a stencil (printers call this a
"screen"), and then using that stencil to apply layers of ink on the printing surface.
Each color is applied using a different stencil, one at a time, combined to achieve the
final look. Screen printing is the best option for designs that require a high level of
vibrancy, when printing on dark shirts, or specialty products. The ink in screen print
ing is applied thicker than digital printing, which results in brighter colors even on
darker shirts.

Preliminary technical information related to material and heat


balance

The majority of T-shirts are made of 100% cotton, polyester, or a cotton/polyester blend.
Environmentally conscious manufacturers may use organically grown cotton and natural
dyes. Stretchable T-shirts are made of knit fabrics, especially jerseys, rib knits, and interlock
rib knits, which consist of two ribbed fabrics that are joined together. Jerseys are most
frequently used since they are versatile, comfortable, and relatively inexpensive. They also
are a popular material for applying screen prints and heat transfers. Some jerseys come in
tubular form, simplifying the production process by reducing the number of seams. Rib knit
fabrics are often used when a snugger fit is desired. Many higher quality T-shirts are made of
durable interlock rib knit fabrics.
Neckbands add support to the garment and give the neckline of the T-shirt a more finished
look. Neckbands are generally one-by-one inch rib knits, although heavier fabrics or higher
quality T-shirts may require two-by-two rib knits. Neckband fabrics may be tubed rib knits of
specific widths, or flat fabric that must be seamed. Additional T-shirt materials include tape or
seam binding, made of a twill or another stiff fabric. Binding reinforces the neckline and
shoulder seams and by covering the seams, it protects them from ripping apart under tension.
Alternatively, elastic may be used at the shoulder seams so they remain flexible.
Thread is of course an essential element in sewing any garment. Several types and colors of
thread may be used to make a single T-shirt. Some manufacturers use white thread for seams
on all their shirts, regardless of color, thus eliminating the extra labor involved in changing
the thread. Visible topstitching is done with a color of thread that blends with the fabric.
Colorless, or monofilament, thread could be used for hems of any color fabric, again
eliminating the need to change thread often, though monofilament thread may irritate the skin
somewhat. Finally, optional decorative features may include trim, such as braiding,

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Making T-shirts is a fairly simple and largely automated process. Specially designed
machines integrate cutting, assembling, and stitching for the most efficient operations.
contrasting cuffs, appliqus, and heat transfer or screen print designs.

Product quality

TS The quality of our products can be tested and quality. The fabric is not easily torn
or damaged and the color is bright and not easy to fade. This product is very light and
comfortable to wear although quite thick. Designs offers a wide selection of t-shirt
brands to meet our sustainability, quality, and price criteria. Our Sales Team can help
customer to navigate through the options available in order to create a custom t-shirt
printing package that best matches their need . Using our specially-developed
printing technology, our design will be in the shirt, not on the shirt. The print wont
crack, fade or peel, and people wont even be able to feel it. And also we fulfil the
quality standard of our company.

Information related to all categories of labor and employment

Our employees must have the ability to produce effectively and efficiently. they will
be given training to be able to produce a quality product that met our standard, Our workers
given training and they are very efficient in processing these products. They have special
expertise that the quality of each product can be maintained . we preparing to hire 5
employees for manufacturing and 3 employees for in the our distro and promotion .

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Sized Clothes list


T-shirts fit just about anyone in any size, from infants to seniors. Adult sizes are
generally small, medium, large, and extra-large, while sizes for toddlers are
detennined by month and weight. In addition, to compensate for the larger
heads of infants relative to their bodies, shirts are specially designed with
shoulder openings that may be fastened with buttons or snaps

Preliminary equipment arrangement

A screen is made of a piece of porous, finely woven fabric (originally silk, but
typically made of polyester since the 1940s) stretched over a frame of aluminum or wood.
Areas of the screen are blocked off with a non-permeable material to form a stencil, which is
a positive of the image to be printed; that is, the open spaces are where the ink will appear.
I think a lot of people get into screen-printing and expect everything to work out perfectly.
This usually doesnt happen. My best advice is to spend as little money as possible and start
the learning process. wecan always buy more equipment down the road and get better
educated on what four-color press to get, inks to use, and any other questions that come up.

Equipment
Film Positives
Photo Emulsion Kit
Silk-Screen
Scoop Coater
Plane of Glass
Exposure unit
Degreaser
Mineral Spirits
Gloves
Squeegee
Ink
Optional:
Heat gun or Flash unit
Printing press

we can get most of the supplies at a decent art store but some of the items may be
harder to find. The degreaser, mineral spirits, glass, and 500-watt halogen work light
(exposure unit) and bought at a hardware store. Silk screening supplies also has pretty
good prices on equipment.

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Estimates of chemical, solvent, or catalyst first charge and annual


consumption

The heat press is arguably the most important component of any T-shirt printing business.
Without a high quality model, our companyll find our final prints lacking colour and/or
clarity. Its very important to gauge both the heat and pressure of our transfers. Picking the
right heat press will ensure consistency throughout.
For the absolute beginners and those with space to consider, the Clam Type Press is a great
choice. It has a small frame so our company wont find it consuming half of our living room.
On the next step up is the Swing Press, which is a modified design. This improves speed and
accuracy of printing by allowing easier access to the T-shirt.
because we are looking to mass produce, wed be well advised to invest in a Pneumatic Press.
These machines are more expensive but they work more efficiently with precise heat and
pressure application. Companies such as Xpres and Target Transfers supply full ranges of
heat presses.

Economic evaluation from simple estimated investment cost of the


facilities included in the project scope
The investment made in this project is very nice because the products are very high
quality and efficient use of advanced machines and efficiently. As well as
employees who professional to manage this business. This product was sold in the
market and bring in a big profit. Investment for the plant is able to sustain the
economy of the people around, and produce high valued products and production
processes are effective and efficient

choosing the productions equipment

Both printer technologies have their pros and cons. Ink jet devices are much cheaper to buy
than their laser counterparts. The advantage of ink jet printers is that they produce bright
colour with vibrant contrast. The downside is that the ink can be expensive. The texture of the
print from an inkjet printer is different to T-shirts that have been commercially printed
Laser printers, on the other hand, are renowned for producing prints which will last for a
much longer period of time. They arent blessed with the same bright colour output, and
theyre also more expensive.
The huge incentive of laser printing is that the fabric will retain a more natural feel. In other
words, it wont feel as if our companyve pressed a design on to it. For professional output,
this is extremely appealing.
For sublimation printing we would be along with special inks. Xpres produce their own brand
of Subli-Print sublimation inks. These are specifically catered for the heat sensitivity that the
sublimation process requires. Its possible to buy a low budget printer from a dealer like
Epson, and by making use of the sublimation inks; our company should be able to use it for
our purpose.

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quality

controls

Most of the operations in manufacturing clothing are regulated by federal and inter-national
guidelines. Manufacturers may also set guidelines for the company. There are standards that
apply specifically to the T-shirt industry, which include proper sizing and fit, appropriate
needles and seams, types of stitches, and the number of stitches per inch. Stitches must be
loose enough to allow the garment to stretch without breaking the seam. Hems must be flat
and wide enough to prevent curling. T-shirts must also be inspected for proper application of
neck-lines, which should rest flat against the body. The neckline should also recover properly
after being slightly stretched. we also pay attention to the quality of the machine and take
care of on a regular basis a good production machine will improve the quality of the product.
In addition, we ensure that every component of the machine has a good quality and
maintained perfectly

Production process :
1.

preparing the potential product and production capacity


Project site is located on campus and nearby market so we already
have a good connection with market. This location will facilitate the company
to get quality raw materials. the product that will be sell will always be up-todate and follow the trend or new product that fulfill customer needs and
wants. Teenagers usually always follow the trend of fashion. For the example
in the motives, we can design with unique and artistic motives and have the
good taste for teenagers.
Our location is also close to the consumer, market is at this location near with
strategic landmark, everyone know the location, because of that our products
can be sold quickly and our loyal customers can easily find a location near
with them. production capacity is 25 shirt per day for starting point to
manufacture this products

2.

Deciding the project location

project location will be directly influence the successful of the business


because location is strictly related to marketing aspect. An analysis of aspect location
in purpose to maximalize the profit. Because of that, we choose the location in Jl. Dr
Moh Hatta Street. Which is located near Andalas University so we will be easier to
market the products because our grand customer is college student, and also we rent
the building for starting new printed shirt business.

3.

guarantee of material inspection

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The Manufacturing Process


Making T-shirts is a fairly simple and largely automated process. Specially designed
machines integrate cutting, assembling, and stitching for the most efficient operations. The
most commonly used seams for T-shirts are narrow, superimposed seams, which are usually
made by placing one piece of fabric onto another and lining up the seam edges. These seams
are frequently stitched with an overedge stitch, which requires one needle thread from above
and two looper threads from below. This particular seam and stitch combination results in a
flexible finished seam.
Another type of seam that may be used for T-shirts are bound seams, in which a narrow piece
of fabric is folded around a seam, as at the neckline. These seams may be stitched together
using a lockstitch, chainstitch, or overedge stitch. Depending on the style of the T-shirt, the
order in which the garment is assembled may vary slightly.

Styling

1 The T-shirt style is designed and the dimensions are transferred to patterns.
Adjustments are made for size differences and stylistic preferences.

Cutting

2 The T-shirt sections are cut to the dimensions of the patterns. The pieces consist of a
tubed body, or separate front and back sections, sleeves, perhaps pockets, and trim.

Assembling the front and back

3 For fabric that is not tubed, the separate pieces for the front and back sections must
be stitched together at the sides. They are joined at the seam lines to form a simple,
narrow, superimposed seam and stitched together using an over edge stitch. Care must
be taken to avoid a needle cutting the yarn of the fabric, which can lead to tears in the
garment.

Assembling the sleeves

4 The hems of sleeves are generally finished before they are fitted into the garment,
since it is easier to hem the fabric while it is flat. An automated system moves the
sleeves to the sewing head by conveyor. The edge may be finished by folding it over,
forming the hem and stitching, or by applying a band. The band may be attached as a
superimposed seam or folded over the edge as binding.
5 If the T-shirt body is tubular, the sleeve material is first sewn together, and then set
into the garment. Alternatively, if the T-shirt is "cut and sewn," the unseamed sleeve is
set into place. Later during the final stage of sewing the shirt, the sleeve and side
seams are sewn in one action.

Stitching the hem

6 The garment hem is commonly sewn with an overedge stitch, resulting in a flexible
hem. The tension of the stitch should be loose enough to allow stretching the garment
without tearing the fabric. Alternative hem styles include a combination of edge
finishing stitches.

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Adding pockets

7 Pockets may be sewn onto T-shirts intended for casual wear. Higher quality T-shirts
will insert an interlining into the pocket so that it maintains its shape. The interlining
is inserted into the pocket as it is sewn onto the T-shirt front. Pockets may be attached
to the garment with automated setters, so the operator only has to arrange the fabric
pieces, and the mechanical setter positions the pocket and stitches the seam.

Stitching the shoulder seams

8 Generally, shoulder seams require a simple superimposed seam. Higher quality Tshirt manufacturers may reinforce seams with tape or elastic. Depending on the style
of the T-shirt, the seams at the shoulder may be completed before or after the
neckband is attached. For instance, if a tubular neckband is to be applied, the shoulder
seams must first be closed.

Attaching the neckband

9 For crew neck shirts, the neck edge should be slightly shorter in circumference than
the outer edge where it is attached to the garment. Thus, the neckband must be
stretched just the right amount to prevent bulging. Tubular neckbands are applied
manually. The bands are folded, wrong sides together, stretched slightly, and aligned
with the neckline. The superimposed seam is stitched with an overedge stitch. Bound
seams are finished with a cover stitch and are easy to achieve. Bound seams may be
used on a variety of neckline styles. The process entails feeding ribbed fabric through
machines which fold the fabric and apply tension to it.
Some neckbands on lower-priced shirts are attached separately to the front and back
necklines of the garment. Thus when the shoulder seams are stitched, seams are
visible on the neckband.
V-necks require the extra step of either lapping or mitering the neckband. In the
former process, one side is folded over the other. A mitered seam is more complex,
requiring an operator to overlap the band accurately and stitch the band at center
front. An easier method for a V-neck look is to attach the band to the neckline and
then sew a tuck to form a V.

Finishing the neckline

10 Necklines with superimposed seams may be taped, so that the shirt is stronger and
more comfortable. Tape may be extended across the back and over the shoulder seams
to reinforce this area as well and to flatten the seam. The seam is then cover stitched
or top stitched.

Label setting

11 One or more labels are usually attached at the back of the neckline. Labels provide
information about the manufacturer, size, fabric content, and washing instructions.

Optional features

12 Some T-shirts will have trim or screen prints added for decorative purposes.
Special T-shirts for infants have larger openings at the head. The shoulder seams are
left open near the neck, and buttons or other fasteners are attached.

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Finishing operations

13 T-shirts are inspected for flaws in the fabric, stitching, and thread.
14 High-quality T-shirts may be pressed through steam tunnels before they are
packaged. Packaging depends on the type of T-shirt and the intended distribution
outlet. For underwear, the shirts are folded and packaged in pre-printed bags, usually
of clear plastic, that list information about the product. Shirts may be boarded, or
folded around a piece of cardboard, so that they maintain their shape during shipping
and on the shelf. Finally, they are placed into boxes by the dozen or half-dozen.

4.

Laour companyt

a.) Building Planning


The building that we are using has 2 floors and has a large yard for parking lots and
facilitate the loading and unloading process . The building design with band-concept.
For the walls, we will hang on many band posters. And the building will has two
floors.
On the first floor our company can see a collection of clothes that had been prepared
in production. In this room plastered various types of clothes are arranged in order. We
have a display cabinet for clothes showing ready for sale. In addition, storage sheds
are also located on the first floor it is intended that the process of loading and
unloading easy
b.) plant lay out
with scale 1:25 and plant size 7mx3m , 2nd floor is the production of clothes. The
floor is composed machine which machines ready made for clothing. Processing semi
roaring manually. this later material will be spun into a fabric that will proceed into
clothes. In addition, workers can process to the next stage clothes according to the
model of the desired product

Legal Aspect
1.Type of Legal Entity
A partnership can exist when two or more people or businesses join together to
operate a business, in this case , our manufacturing process of Rocktees Manufacturing
Business is partnership which consists of four people as founder of this business .The reason
why we choose as be partnership because with partners to share the responsibilities and
lighten the workload, members of a partnership often find that they have more time for the
other activities in their lives and because our business is also a small business, the Rocktees
company is fairly easy to manage, and decisions can be made quickly without a lot of
bureaucracy as a complicated with the big company one who always waiting to more persons
and to get decision is so long which is not the case with corporations, which must have

BUSINESS FEASIBILITY STUDY

19

shareholders, directors, and officers, all of whom have some degree of responsibility for
making major decisions. But also there is have some drawback for building partnership which
are Unlike corporations, that is exist independently of their owners, the existence of
partnerships is dependent upon the owners and , regardless of ownership, general partnerships
dissolve if one of the partners dies, retires, or withdraws, Even though this is the law
governing partnerships, the partnership agreement can contain provisions to continue the
business.

2. Type of Business
A. Kind of Business
Business that what we want to conduct is manufacturing business which is
concern about RockTEEs printed t-shirt products. The philosophy that we consider about this
manufacturing process is cited from Levy Michael dan Barton (2004:139) fashion is a type
of product or away of behavioring that is temporarily adopted by a large number of
consumer because the product or behavior is considered to be socially appropriate for the
time and place. Here are all camouflage clothing needed to maintain its existence in the
world. in addition to the representation of his ideas and himself, clothes have become an
instrument, or an extension of the idea. clothing became separate science reviewed by
humans and a sign that expands on the structure associated with the hegemony of fashion,
trends, politics, industry, class or religious belief even. Clothing is currently a symbol of
status, prestige status, a living ideology of modern days, even to burst into the recesses of
human territory.Clothing is a difficult industry to be in, because in order to have demand, the
clothes must be fashionable, and fashion changes year by year. However, clothing is also a
good industry to be in, because it is a basic need.
B. Government Facilities
This RockTEEs business are not running well without using government
facilities such as airport and harbour to shipping our products and raw materials orders .
C. Environmental Effect
This manufacturing process which is in this case tshirt production also have impact
that influenced ecosystem and environment such as The amount of carbon dioxide emitted to
produce one shirt and jeans is equivalent to driving 78 miles. Our company walk to work to
reduce our carbon footprint, but every undershirt our company buy sets our company back 20
miles.With the production of one t-shirt using up 700 gallons of water and one pair of jeans
using up 1,500 gallons, it is easy to understand why the call to curb textile waste is urgent .
Aside from carbon emissions, the remnants of the pesticides sprayed on cotton and the
chemicals used to dye, fade, and stonewash clothes pollute the air, waterways, and workers'
lungs. The cotton industry uses 25% of the world's pesticides and herbicides. In order for an
item to be kind to the environment it should have a minimum impact. This means that the
core materials should not have been grown or created in a destructive manner, that the
manufacturing process is not harmful to the environment, and uses the minimum of
resources. Additionally, the carbon footprint is kept to a minimum by reducing the number of
miles that the item has traveled before it is sold. There are other environmentally friendly
materials that t-shirts might be made from. These include organic hemps and linens, as well
as exciting new fibers such as bamboo and tencel, which is made from eucalyptus trees. We
have technique to dry t-shirt out of direct light, since some organic dyes are not as light fast
as chemical dyes to reduce air polution.

3. Placement for Business

BUSINESS FEASIBILITY STUDY

20

a.) Building Planning


The building that we are using has 2 floors and has a large yard for parking lots and
facilitate the loading and unloading process . The building design with band-concept.
For the walls, we will hang on many band posters. And the building will has two
floors and also we rent the building for starting point.
On the first floor our company can see a collection of clothes that had been prepared
in production. In this room plastered various types of clothes are arranged in order. We
have a display cabinet for clothes showing ready for sale. In addition, storage sheds
are also located on the first floor it is intended that the process of loading and
unloading easy
b.) plant lay out
with scale 1:25 and plant size 7mx3m , 2nd floor is the production of clothes. The
floor is composed machine which machines ready made for clothing. Processing semi
roaring manually. this later material will be spun into a fabric that will proceed into
clothes. In addition, workers can process to the next stage clothes according to the
model of the desired product
c.) Land Status
The owner of the status of land is not used by Government owner but private
owner and there is no differentiation of part or rent in this land status and totally own
by the Managing of Boar Director.

4. Business Timing Process


This RockTEEs project would be handled at one year first round of manufacturing
process which is short term business schedule from preparation, survey, raw material
selection, hiring employees, grand opening, manufacturing process and until control and
evaluate our performances .

5. Regulation and Laws


a.) Peraturan Pemerintah Nomor 38 Tahun 2007 tentang Pembagian Urusan Pemerintahan
Antara Pemerintah, Pemerintahan Daerah Provinsi, dan Pemerintahan Daerah
Kabupaten/Kota, perlu mengatur kembali ketentuan dan tata cara pemberian Izin Usaha
Industri, Izin Perluasan dan Tanda Daftar Industri;
b.) Surat Keputusan Menteri Perindustrian Nomor 148/M/SK/7/1995 tentang Penetapan
Jenis Dan Komoditi Industri Yang Proses Produksinya Tidak Merusak Ataupun
Membahayakan Lingkungan Serta Tidak Menggunakan Sumber Daya Alam Secara
Berlebihan;
c.) Peraturan Menteri Perindustrian Nomor 19/M-IND/PER/5/2006 tentang Standardisasi,
Pembinaan dan Pengawasan Standar Nasional Indonesia Bidang Industri;
d.) Keputusan Menteri Perindustrian dan Perdagangan Nomor 254/MPP/Kep/7/ 2000
tentang Tata Niaga Impor dan Peredaran Bahan Berbahaya Tertentu;

BUSINESS FEASIBILITY STUDY

21

In terms of the legality of operations, our business units have multiple documents of legal
entities to conduct business as a provision that the business runs smoothly implemented at a
later date. Some legal documents held relating to the legal aspects are:
1. License (Trading Business License)
2. SITU (Permit Place of Business)
3. TIN (Taxpayer Identification Number)
4. NRP (Company Registration Number) or TDP
5. EIA (Environmental Impact Assessment )
License:
Trade Business Permit / License (Minimum Service Standards Department of Industry and
Trade of Padang )
A. Systems and Procedures.
1. The procedure for submission of application.
a. Applicant dating to the service counter to take the form of SPI
b. Applicants who can not own dating to the counter can be handled others by bringing the
power of attorney stamped Rp. 6000, 2. Procedures for handling service
a. Form SPI was completed, and attached full requirements be returned to the clerk to check
the truth and validity.
b. When it is complete and correct, receipt will be given an application for permission that
has been given a date and initials officer.
c. If there are mistakes or endorsement form and no shortage of requirements will be returned
to the applicant when filing.
3. Procedures for Delivery Outcome.
a. Permit / Certificate of Registration / Recommendations which have been completed,
according to the target processing time can be taken at the service counter / counter
submission, the decision to fill a book.
b. Intake Permit / Document / Certificate of Registration / Recommendation to submit proof
of registration / submission / receipt file, point b.2)
4. Procedures for the Submission of Complaints
Applicants can fill out a complaint with form to the service counter, ask for a receipt of
complaints and complaint with the clerk.
Technical Standards Granting trade business license (License)
1. Terms and Documentation:
Fill out Form SP - Small Business License / Medium / Large enclosed with: Company Not PT
and Cooperative Company Guild
a) Copy of Deed of Establishment which was registered in the District Court.
b) Copy of Owner / Person in charge of the company.
c) Copy of TIN Company.
d) Copy SITU of the local government for the required Law Disorders.
e) Beginning Balance Company.
f) photo of 4 x 6 (2 sheets).

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22

Patent and Trade Marks

Trademarks protect branding- things like our business name and


our logo that our company put on our products so that our customers
know they are not knock-offs or imitations. For a really big business, a
brand is worth big bucks and the cost of a trademark registration is small
in comparison like as is costly . So for a big company it is a no brainer to
register all their branding- business name, logos, slogans, even names of
individual product lines. But smaller businesses are often working on a
limited budget. instead from http://paten-indonesia.dgip.go.id, The
benefits of trademark registration are not so obviously greater than the
cost of registration, which can be close to a thousand dollars, depending
on the difficulty of registering the trademark and the law firm used and
also we decided because of Cost to patent and Trade marks is so
expensive so, first round manufacturing process we've not register our
Patent and Trade mark of RockTEEs So, many business owners like us
decide that they want to limit their registration to a single trademark, and
are left with a decision between registering their business name and their
logo. We decide to quotes some unique words from internet and famous
film, although not all quotes are legally protected, when using quotes from
famous figures in t-shirt designs its best to quote the person who
originally said it. Just give them their credit, even if its in super tiny print,
or in the product description on RockTEE website. In the possible event
that the person being quoted (or people associated with him/her) comes
across our t-shirt theyll at least respect the fact that they were credited.
Beyond that there may still be some legal implications based on whether
the author decides to pursue any action.

BUSINESS FEASIBILITY STUDY

23

Management And Human


Resources Aspect
Aspects of Management in the Business Feasibility Study include:
Details of the principles of the organization will be explored in the following nine factors:
Formulation of objectives of the organization

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24

Range of control
Study the organization
Unity of command
FlexibilityOrganizational structure

BUSINESS FEASIBILITY STUDY

Departemenisasi
Division of labor
Coordination
Delegation of authority

25

The organizational structure can be defined as the arrangement and relationship between parts and
positions within the organization company structure explain the division of work activities, and with
regard to the relationship of the activity functions to certain time limits.
There are four elements in the structure, namely:
Specialization activity
Standardization activities
Coordination of activities
Large unit
In the organization known various forms of organization or more appropriately called the
organizational structure, namely:
1 Outline Organization
2 Functional Organization
3 Organization of the line and staff
4 Combined Organizations
5. Matrix Organization
Coordination, Drive and Steering
Briefing (directing) is an action to see to it that all members of the group are trying to achieve
objectives consistent with the managerial planning and organizational efforts. So actuating means to
move people to want to work with a full awareness of itself or together to achieve the desired goals
effectively. In this case what is needed is leadership (leadership).
From the definition above can be explained as the following matters:
a) Leadership must involve others
b) leadership involves the unequal distribution of power between leaders and led
c) Leadership can legally entitles not only a leader but also influence direction.
Leadership includes influencing the process of determining the organization's goals, motivate
behavior followers to achieve goals, influence to improve the group and its culture. Leadership has a
close relationship with motivation. This can be seen from the success of a leader in mobilizing others
in achieving the stated goals is dependent upon authority, and also the leader in creating motivation
for each person subordinates, colleagues, superiors or leadership itself.
Control (controlling)
There are many names for monitoring / control (controlling), among others, evaluating, apprasing, or
correcting. control can be defined as a process to "ensure" that the objectives of the organization and
management is achieved.
Surveillance definition proposed by Robert J. Mockler has made the following essential elements of
the regulatory process:
Supervision of management is a systematic effort to set performance standards with planning
objectives, to design information feedback systems, to compare actual activities with predetermined
standards, define and measure deviations, and taking corrective action necessary to ensure that all
sources power companies are used in the most effective and efficient in achieving corporate goals.
The types of control
(1) Method of preliminary control
(2) Method of joint control
(3) Method of feedback control
Preliminary Supervision (freedforward control). Supervision preliminary, or often called the steering
controls, designed to anticipate problems or deviations from standards or goals and allow correction is
made before a particular activity stage completed.
Supervision is done in conjunction with the implementation of activities (concurrent control)
This oversight, supervision is often called "Yes-No", screening control or "stop-continue", performed
during an ongoing activity. This type of monitoring is a process in which certain aspects of the
BUSINESS FEASIBILITY STUDY

26

procedure must be approved first, or certain conditions must be met before activities can be resumed,
or become some sort of equipment "double-check" that better ensure the accuracy of the
implementation of an activity.
Supervisory feedback (feedback control). Supervisory feedback, also known as the past - action
controls, measuring the results of an activity that has been completed. The causes of deviations from
the plan or prescribed standards, and the findings apply to similar activities in the future.
Organizing (Organizing)
Organizing (Organizing) is done with the purpose of dividing a large activity into the activities of
smaller ones. Organizing facilitate managers in monitoring and identifying people who need to carry
out tasks that have divided them. Organizing can be done by determining what tasks need to be done,
who should do it, how the tasks are grouped, who is responsible for the task, at which level the
decision should be taken.
Step organizing
in outline, the steps in the process of organizing, ranging from planning, implementing, and
monitoring the work of the organization, an outline is presented below:
Detailing the entire work to be done to fit the organization's vision and misisinya.
Dividing the workload into activities that are logical and can be adequately performed by seseoramg
or by a group of people.
Combining the work of members of the organization with a logical and efficient manner.
Establishing mekanismeuntuk coordinate the work of member organizations in a harmonious whole.
Monitor the effectiveness of the organization and take steps to pay attention to the adjustment or
increase effectiveness.

Organizing
An enterprise will not run smoothly without a system to control it. Separation of duties and
responsibilities is also an important aspect of a company or entity. So that they go well then it
is necessary to build a hierarchical system of organization. System organization is as follows:

The duties and authority of each section is as follows:


1. Board of Directors
Task and Duties
a.) Representing the scope of professionalism
b.) Supervise the management activities
c.) Arranging strategic planning and goals
d.)It appoints the executive for middle level i.e. departmental managers.
e.)It controls & coordinates the activities of all the departments.
f.)It is also responsible for maintaining a contact with the outside world.

Authority
a.) To appoint and dismiss employees
b.) Decide on policy - a policy that will be taken
c.)participate in employment &
training of lower level management.

2.) Marketing Manager

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27

Task and Duties


a.) To market yield at the market and consumers around padang and Indonesia
b.) Determine areas - marketing area of production
c.)Reporting to the Managing Board of Director and serves to carry out the activities of
buying and selling fashion products in accordance with established policy.
d.)Plan, formulate and propose objectives, policies, and programs of work in the field of
marketing.
e.)Utilizing the mass media in promoting the production of a certain fashion.
f)Determine the selling price or discounted rates in accordance with company policy.
g) Conducting buying negotiation regarding discounts, payment terms and others.

Authority
a.) Provide discounts when consumers buy in large quantities
b.) determine the each marketing profits and spreading into department

3) Production Manager
Task and Duties
a.) Determine the number of production convection
b.) guide and instruct workers for day to day activities such as assembling, printing .
c.)They are responsible for the quality as well as quantity of production.
d.)They are also entrusted with the responsibility of maintaining good relation in the
organization.
e.) increasing high quality products effectively and efficient
f.)Maintain continuity of fashion production.
g.)Maintaining a standard fashion production company that has been established.
h) Keep abreast of fashion production company in order to increase the production of fashion
held better in perfecting the production of fashion

Authority
a.) Choosing the proper production or unfit for sale
b.) determine to decide economic order quantity
c.)determine return order of raw materials and equipment

4) Financial Manager
Task and Duties
a.)Managing business finances
b.)Establish a plan of income and expenses of long-term short-term based on the budget that
was approved in the meeting of the Managing Board of Director.
c.)Oversee all matters concerning the smooth provision of all financial and corporate funds.
d.) Overseeing the allocation of funds are available to fit the needs assessment, and decisionmaking in the transfer of the necessary funds.

Authority
a.)Make decisions related to the financial condition of the business

4.) Designers
Task and Duties
a.)Creating a design - a unique design and the latest

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b.)

Authority
a.) Decide on the design of products that will be created

5) Super visor
Task and Duties
a.) Oversee the implementation of the production process
b.)Overseeing sales activities
c.) communicate workers problems, suggestions, and recommendatory appeals etc to the
higher
level and higher level goals and objectives to the workers.
d.)They help to solve the grievances of the workers.
e)are responsible for providing training to the workers.
f)arrange necessary materials, machines, tools etc for getting the things done.

authority
a.)Giving a warning to employees were negligent in their work

6) Employees
Task and Duties
a.) Implement production processes
b.)Serving consumers in stores

authority
a.)consists of the right to advise or assist those who possess line authority as well as other
staff personnel.
b.) enables those responsible for improving the effectiveness of line personnel to perform
their required tasks.
Human Resource Planning
A.) Qualifications of each workforce :
- Production: - Conscientious and meticulous in controlling the production process
- Financial: - Responsible for business finance
- Have skills in managing business finances (income and expenses recorded effort)
- Marketing: - Ability to coordinate the demand and supply in the market - Designers

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29

- Have skills in convection


- Diligent and hardworking
- friendly
- Students PKL
- Status field of dressmaking vocational
students
- Having an official permission from the
school
- Able polite
- Diligent and hardworking

BUSINESS FEASIBILITY STUDY

o Minimum S1
o Attractive appearance
o broad-minded about fashion
- Supervisor
Minimum D3
Assertive, meticulous and soul of a leader
- Employees
- Education min SMA / SMK
- Women and man aged 18-40 years

30

B.)Recruitment and Selection


The main purpose of the recruitment and selection process is to get the right person
for a particular position, so that the person is able to work optimally and can survive in the
company for a long time. Although the goal sounds very simple, the process was very
complex, take a long time and cost a bit and is an opportunity to make a mistake in
determining the right people. Errors in selecting the right people is very big impact on the
company or organization. This is not only because of the recruitment and selection process
itself has been time-consuming, and labor costs, but also due to receive the wrong person for
a position will have an impact on efficiency, productivity, and can damage the employee
morale and the people around him .
At this time where competition for jobs is getting stronger, companies often have
difficulty in determining the appropriate candidate given that there are many candidates
available but very few who have adequate qualifications. Low morale and cultural influences
"paternalism" that has lasted decades increasingly difficult for companies to find the
candidate that actually fit. In addition to demanding the expertise and skills of the personnel
recruitment companies also have to really prepare recruitment and selection process to the
fullest.
The process of recruitment and selection processes generally consist of several steps or
stages. Below are the steps that are usually performed in the recruitment and selection
processes in RockTEEs :
1. Identify the vacant position and the amount of power required.
2. Looking for positions through job analysis information
3. If the work requirements have been arranged, then the next step is to decide where to look
for the right candidate.
4. Choosing recruitment methods most appropriate for the post.
5. Calling candidates are considered to meet the requirements of the post
6. Filtering / selecting candidates.
7. Making job offers.
8. Start working.
C.Employee Training
We also will provide training services to all sections in my company so that every person can
do its job properly. Among them are financial training, marketing training, and training in
sewing and designing for production parts.
D. Compensation
Three Theory Background / background for Workers Compensation:
1. Compensation Theory of the Market Economy
The theory of the market economy is the creation of a wage price or fee that is based on the
bargaining power of negotiation / negotiation between the workers, employee, employees,
workers, etc. with company management.
2. Theory of Compensation Standard of Living
The standard theory of life is a compensation system in which the wages or salaries are
determined by adjusting with a decent standard of living where workers can enjoy life with
peace, which, peaceful and prosperous includes old-age pension, savings, education, housing,
transport and so forth.
3. Compensation Theory Paying Ability

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The theory's ability to pay is a little big determination system of compensation given to
workers to adapt to the level of revenue and profits. When the company was victorious, the
employee is given additional compensation. But if the company suffers a loss, the employee
will also receive a reduction in compensation.
E. Termination
Termination of employment (FLE) may occur by a variety of reasons, among others because
of decisions the company (owner), desire of employees, contract labor, and so died. The
severance is granted is 50% if the employee is dismissed by the company and 25% of salary
if the employee quit because of his own accord.
F. Job Analysis
The analysis work was done to determine the development and progress of the business.
Things are done in the job analysis include:
1. Examine the production process from start to finish
2. Checking the correspondence between design and production

3. Examine the fit between orders and production


4. Check the consumer appetite for products sold

Organizational Structure and Gantt Chart


January
N
O
.

February

March

April

May

June

July

Septemb
er

August

October

Novemb
er

Decemb
er

Jobs Explanations
1

Research Materials
and Inventory

Reseach
manufacturing
methods

4 1

BUSINESS FEASIBILITY STUDY

1 2

2 3

3 4

4 1

2 3 4 1 2 3

2 3

3 4

32

Name Ideas

Logo design

store build-out

hiring employees

Designing t-shirt

web completion

manufacturing process

1
0

selling producst

1
1

further product design

1
2

cost quotes

1
3

evaluation of
performances

1
4

profitability counts

Environmental Aspect
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Most of us try to be aware of the environmental impact of the choices we make in our
daily lives and that extends to our professional lives as well. Who doesn't want to make a
positive impact? It may be as simple as taking mass transit or as complex as tracking our
carbon emissions and trying to live carbon-neutral. The point is that the environmental
movement has become a mainstream, ongoing and important part of society and commerce.
Many companies worldwide also are making an effort to be aware of the ecological impact of
their products, as well as their manufacturing methods and materials. This effort has become
an increasingly important part of their business plans, as it can increase brand value and profit
margin and, ultimately, could decrease production costs. Screen printed T-shirts have
doubled as billboards for pro-environmental sentiments as far back as the first Earth Day in
1970. Because T-shirts have been so closely associated with environmentally conscious
lifestyle choices, it only makes sense that our customers look to us to lead this movement.
Thus, our impact on the environment becomes especially important to our businesses. Not
only do we want to make responsible ecological decisions because of our sense that it is the
right thing to do, but we are learning that it will help our businesses to be more successful
and profitable.
The market will increasingly demand that we make the effort to be more sustainable
and will reward the companies that do it well. In addition, we will likely see more regulations
put in place to ensure that all companies use more environmentally responsible
manufacturing processes. We also are seeing consumer backlash against unsafe products and
manufacturing practices, and heavily polluting industries. Like many other industries around
the world, screen printers need to implement serious and ongoing "green" initiatives in our
factories. Simply put, we should try to be leaders in the effort to use sustainable production
methods and materials. Sustainability is usually defined as the ability to provide for the needs
of the world's population without damaging the ability of future generations to provide for
themselves. Green, in this sense, could be defined as something produced with little
environmental threat or harm by using sustainable practices. One simple but commonly
accepted way to think about sustainability is to consider the following: How much material is
taken from the Earth to make the product? How soon is it replaced naturally? How persistent
is it or how long will it take to return to its original natural components?

Industrial emissions
This Directive aims at minimising harmful industrial emissions throughout the European
Union, in particular through the application of best available techniques.
Plants for the pre-treatment (operations such as washing, bleaching, mercerisation) or dyeing
of fibres or textiles where the treatment capacity exceeds 10 tonnes per day are subject to the
IED Directive, i.e. are required to obtain an authorisation (environmental permit) to operate.
According to the Directive, permit conditions must be based on Best Available Techniques
(BAT).This document provides general information on the textile sector and on the industrial
processes used within the textile sector (in particular fibre preparation, pre-treatment, dying
printing and finishing). It provides data and information concerning emission and
consumption levels and describes the emission reduction and other techniques that are
considered to be most relevant for determining BAT and BAT-based permit conditions.

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34

Regulation on Registration, Evaluation, Authorisation and Restriction


of Chemicals (REACH)
The sector will also be affected by the new REACH Regulation on chemicals, being a
downstream user of a wide variety of chemical preparations. The sector faces a risk related to
the vulnerability of low volume chemicals of critical importance to textile production and
products, such as potentially significant reformulation costs, withdrawal from the market and
time-to-market problems. However, REACH can also bring business benefits by increasing
innovation in leather chemicals.
Indonesian Ministry of Industry and Trades Rule :
1. Peraturan Pemerintah Nomor 27 Tahun 1999 Tentang Analisis Mengenai Dampak
Lingkungan Hidup
2. KepMen LH Nomor 51 Tahun 1995 Tentang Baku Mutu Limbah Cair Bagi Kegiatan
Industri
3.PerMen LH Nomor 09 Tahun 2007 tentang Baku Mutu Air Limbah bagi Usaha dan/Atau
Kegiatan Industri Rayon
4.PerMen LH Nomor 10 Tahun 2007 tentang Baku Mutu Air Limbah bagi Usaha dan/atau
Kegiatan Industri Purified Terephthalic Acid dan Poly Ethylene Terephthalate
5. Convention on the Transboundary Effects of Industrial Accidents 1992

Other directives with relevance for the sector


Whenever Biocidal products are added to textile products to confer them with specific
properties (e.g. repeal fleas, mites and mosquitoes or avoid allergens) the provisions of the
Biocides Directive have to be complied with.
As regards, voluntary approaches, the European Ecolabel for Textile products exists since
1999.
Conventional cotton production uses approx 25 percent of the worlds insecticides and over
10 percent of the pesticides. RockTEE average T-shirt may even have formaldehyde in it to
prevent creasing. In addition, standard printing inks used in screen printing contaminate the
environment with 1.5 million gallons of plastisol a year. Plastisol contains PVC (polyvinyl
chloride) which releases dioxins, one of the most toxic and carcinogenic chemicals known to
science.
It is a grave concern to the world that such socially irresponsible environmental practices are
utilized in the world today. The health risks of the intensive use of toxic chemicals to grow
cotton and to print images onto apparel stretch from the farmers, to manufacturing plant
workers, to the consumer.

Environmental impacts
Different fabrics have different impacts, depending on what theyre
made of:

Nylon and polyester

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35

Made from petrochemicals, these synthetics are non-biodegradable as well, so they are
inherently unsustainable on two counts. Nylon manufacture creates nitrous oxide, a
greenhouse gas 310 times more potent than carbon dioxide. Making polyester uses large
amounts of water for cooling, along with lubricants which can become a source of
contamination. Both processes are also very energy-hungry.

Rayon (viscose)
This is another artificial fibre, made from wood pulp, which on the face of it seems more
sustainable. However, old growth forest is often cleared and/or subsistence farmers are
displaced to make way for pulpwood plantations. Often the tree planted is eucalyptus, which
draws up phenomenal amounts of water, causing problems in sensitive regions. To make
rayon, the wood pulp is treated with hazardous chemicals such as caustic soda and sulphuric
acid.

Cotton
Natural fibres have their problems, too. Cotton is the most pesticide intensive crop in the
world: these pesticides injure and kill many people every year. It also takes up a large
proportion of agricultural land, much of which is needed by local people to grow their own
food. Herbicides, and also the chemical defoliants which are sometimes used to aid
mechanical cotton harvesting, add to the toll on both the environment and human health.
These chemicals typically remain in the fabric after finishing, and are released during the
lifetime of the garments. The development of genetically modified cotton adds environmental
problems at another level. Organic cotton is quite another matter.

Wool
both agricultural and craft workers in the UK suffer from exposure to organophosphate sheep
dip problem. Getting from fibre to cloth - bleaching, dyeing, and finishing - uses yet more
energy and water, and causes yet more pollution.

Manufacturing processes
Getting from fibre to cloth bleaching, dyeing, and finishing uses yet more energy and
water, and causes yet more pollution.

Dyeing alone can account for most of the water used in producing a garment;
unfixed dye then often washes out of garments, and can end up colouring the rivers, as
treatment plants fail to remove them from the water. Dye fixatives often heavy metals
also end up in sewers and then rivers.

Cloth is often bleached using dioxin-producing chlorine compounds.

And virtually all polycotton (especially bedlinen), plus all easy care, crease
resistant, permanent press cotton, are treated with toxic formaldehyde (also used for
flameproofing nylon).

Water Pollution

BUSINESS FEASIBILITY STUDY

36

Some 72 toxic chemicals reach our water supply from textile dyeing. Many of these
chemicals cannot be filtered or removed. The textile industry is second only to agriculture as
the biggest polluter of clean water globally. Dyeing, rinsing, and treatment of textiles all use
large amounts of fresh water.
Cotton production accounts for 2.6% of annual global water usage. A single T-shirt made
from conventional cotton requires 2700 liters of water, and a third of a pound of chemicals to
produce.
Millions of gallons of wastewater discharged by mills each year contain chemicals such as
formaldehyde (HCHO), chlorine and heavy metals such as lead and mercury. These
chemicals cause both environmental damage and human disease. Effluents released from
mills are often at high temperatures and pH, which exacerbate the problem.

Other materials
Other materials used in clothing and shoes include:

Leather (with polluting tanning and dyeing processes, as well as intensive


farming impacts and animal rights issues).

PVC a notoriously toxic material.In 1999, the federal government measured


dioxins in blood samples taken from 28 residents who lived near PVC facilities in Louisiana.
The testing revealed the average resident has three times more dioxin in his/her blood than
the average U.S. citizen. Workers at PVC plants may face life-long health risks from
exposure to cancer-causing vinyl chloride and other hazardous chemicals used to make PVC.
These health risks include angiosarcoma of the liver, lung cancer, brain cancer, lymphomas,
leukemia, and liver cirrhosis.

PVCs health risks can reach consumers and children through printing on diapers,
bottles, bibs, shirts, skirts, lingerie, shoes, and more.

Harmful solvents used e.g. in glues and to stick plastic coatings to some
waterproof fabrics.Modern dyes are based on petrochemicals, a non renewable resource and
there are many risks to human health and the environment from modern dyes.
The dye bath contains processing chemicals and dye. Different fibres need different dyes and
chemicals so the amount of dye varies between 2 and 80g per kg of textile.

SOURCES OF AIR POLLUTION: Some of the pollutants causing air pollution are
Sulpher dioxide, Metal sulphates, and exhaust gases emanating from polycondensation, melt
spinning fiber lines and the fluff generated during spinning & weaving processes etc.
Steam which is the energy media has an important role in textile mill and in processing
housesboth coal and water are used to generate steam and in the process Carbon, Carbon
dioxide, Carbon monoxide & Sulpher are produced which again cause Air pollution.

HAZARDS OF AIR POLLUTION: Air pollution is injurious to human being as well as


animals. Air pollution results to moratality to eye, respiratory problems, irritation,
diminishing visibility, obscuration of sunlight, persistence of fog, etc.

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WORKERS RIGHTS
Many people feel that concern for the environment is intimately linked to
concern for humankind, as well. Working conditions in the clothing industry are
an international and national scandal. There are numerous reports of workers
being forced to work long hours for desperately low pay, dangerous and
unhealthy working conditions, female workers being sexually exploited, and
attempts to form trades unions being brutally put down. Vulnerable people are
routinely exploited in sweatshops and as home workers. In addition, the people
who make clothes often have to work in terrible conditions. Many clothes bought
in northern countries are imported cheaply from the South, where they are made
by sweat shop workers (often children) who work long and hard for very little
money.
Falling clothing prices have put cheap production in demand all
along the supply chain, from pickers and labourers on farms to factory workers.
There is added pressure on producers to cut corners, and workshops with poor
standards are seen as a hidden way to do this . Much of the manufacture of
garments employs unskilled - or low skilled workers who lack of knowledge of
rights, or are prevented from joining together in trade unions. Women who have
worked on farms are almost three times more likely to develop breast cancer than
those who have never worked in agriculture, a new study of cancer patients in the
Windsor area suggests.

Different technique approach to Overcome the Effect


Screen Printing:
Green Screen Printing, Inc uses inks that are PVC and Phthalate free. These two chemicals
are the main environmental concerns in the screen printing industry and are not necessary to
producing high quality printed garments.Green Screen Printing. is dedicated to implementing
socially responsible business practices which include finding ways to preserve the
environment. For this reason we identify and provide only 100% Organic Cotton as a service
both to our customers and to the world as a whole for all generations to come.

Water Based Printing


Water based inks are our preferred choice for printing RockTEE orders, water based screen
printing inks are generally considered to be both higher quality, and more environmentally
friendly than the plastic alternative. Plastic being the most widely used ink by promotional
printers in the UK. There are some circumstances where water based inks will not be a
practical solution, in these instances plastic ink may be used. Clean up of plastic inks no
longer requires solvents, and the inks themselves are being changed rapidly to meet demand
for products which are more environmentally friendly. Advertees takes in to consideration

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RockTEE design, RockTEE chosen colour of T shirt, and the total quantity of t shirts to be
printed before advising on what we feel is the best ink for our company. We are currently
devising a chart which may help in choosing product colours, and more crucially creating
designs more suited to water based printing. If eco friendly really is an essential part of
RockTEE final product do not hesitate to seek advice prior to design.

Overcome Water pollution


Improvements in dye and laundry technologies, in industry as well as at home, are showing
results; clothes as well as washing machines with a low water and/or detergent footprint have
already entered the market. With rising water and electricity bills, the rhythm of development
and innovation for industry equipment and home appliances will no doubt increase further.
We also can expect a re-evaluation of what is produced and when. Some suppliers and
retailers could find it difficult to operate their current business models under the shifted
conditions. Products with higher margins the mid to top segment in the apparel sector
will be able to meet new financial and production constraints more easily and take up a
priority position in the eyes of supplying manufacturers. Watch disposal of household
products such as paint and solvents. These chemicals also cause water pollution when our
company don't dispose of them properly. Use hazardous waste disposal depots. Set up a
composter. This is a great way to reduce RockTEE weekly garbage, dispose of yard clippings
and make a wonderful rich organic product for garden soil.

Substitution of Chemicals: During processing it is possible to use some alternate chemicals


which can be recovered and reused easily without releasing as wastes. For eg: synthetic warp
sizes can be substituted by starch, gelatins etc.
The following steps are used for treatment of effluent water before it is release into the water
streams, to control water pollution:

1. Primary Treatment: It comprises of neutralization and removal of suspended


solids by sedimentation, flotation, or coagulation technique using alum and electrolyte.

2. Secondary Treatment: This treatment involves oxidation of organic matter by


aeration, either by chemical or biological method or a combination of both. This process is
carried out in the presence of microorganisms developed at the surface of sewage sludge in
presence of chemical nutrients such as urea, phosphates, etc.

CONTROL OF AIR POLLUTION: In order to control indiscriminate release of pollutants


into the air by industrial units the following steps have been recommended by control board
of prevention & control of pollution. So that air pollution can be kept under control
1. Height of chimneys: Height of chimney plays an important role in controlling air pollution.
The central Board of pollution control after investigation has prescribed minimum norms by
which the height of chimney should not be less than 30 meters so that the various gases
causing pollution are release out of the vicinity of living organism i.e. plants, animals etc.

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2. Gravitational & internal separator: Gravity or inertia is used to remove particulate matters
from air or vapors. The various systems used are:
(a) Settling chambers: The settling chamber is oldest & simplest type of dust collection
equipment. . In this system the polluted air containing solid particles such as dust, is passed
through the chambers. The solid particles having certain weight get settled down into the
chamber due to gravity.
(b) Dynamic separator: In this system, Centrifugal force is used to separate particulate
matters from air stream. Thus, air pollution can be reduced.
(c) Wet cyclones & multiple cyclones: There are most economical systems which are used as
precleaners as well as final collection system. A number of cyclone equipments put in series
are known as multiple cyclones.
3. Filtration: Filters are used to remove particulate matters eg. Dust, lint & fumes. The filter
media is generally woven or sintered metal beds of fibres, metal turning are also employed.
Fibrous mats & aggregate bed filter, paper filters & fabric filters are very popularly used for
this purpose.

Recycling T-Shirts
One environmentally friendly way of owning a new t-shirt is to buy a second hand or
recycled garment. This not only keeps the garment out of land fills, it also saves the resources
required to make a garment using virgin materials.
Recycled t-shirts can be given a new lease on life with the addition of some decoration or
adornments. A plain white t-shirt and some fabric paint present all sorts of opportunities!
Someone with a few craft skills can transform an old t-shirt, perhaps making new garments
for children or tops for babies.

Caring for RockTEE Green Living T-Shirt

Use an environmentally friendly detergent, such as Ecover.

Dry RockTEE t-shirt out of direct light, since some organic dyes are
not as light fast as chemical dyes.

When our company have finished with the t-shirt, recycle it by


passing it on to charity shops or recycling charities

Environmental Friendly Fabrics:


Organic Cotton
The most common material for t-shirts that are environmentally friendly is organic cotton.
Organic cotton is cotton that has been grown without the use of harmful chemicals such as
pesticides and herbicides. In order for a product to be certified as organic, it is not just
enough that the raw materials were grown in an organic manner, the manufacturing process
must also comply with the high standards. With cotton, this means that the preparation
process, including bleaching and dyeing, is done without chemicals and with minimum effect
on the environment. This is why most organic cottons are a natural color. Color variations can
be gained by the use of different cotton types. While it is possible to dye cotton with organic

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40

or natural dyes, the mordants required to set the dyes often are strong chemicals and therefore
are not always regarded as being environmentally friendly. It aims to reduce the problems
caused by pesticides used particularly in cotton and promotes organic and fair trade
alternatives. It provides information for consumers on the environmental impacts of fabric
production. Organic cotton garments are likely to be free from chlorine bleaches and
synthetic dyes.

Hemp is a thoroughly ecological crop: highly productive, easy to cultivate and pest tolerant,
so needing few or no agrochemicals whilst at the same time binding and enriching the soil
with its deep roots. It is a traditional fibre, that went out of favour in the 1930s for political
reasons, rather than practical ones. It is now at long last undergoing something of a revival:
Hemp clothing specialists include The Hemp Store, and The Hemp Trading Company, which
offers skatewear, boardwear, streetwear, clubwear. Hemp yarn is available from the House
of Hemp whose website contains a lot of useful information on hemp generally. Note:
agricultural hemp, though versatile and productive as a fibre, oil and food plant, is useless as
a narcotic!

Bamboo is the latest plant material to hit the eco-friendly fabrics market. It is described as
hypoallergenic, absorbent, fast-drying and naturally anti-bacterial and comes from a very
fast-growing plant. Its not all good though, there are some concerns over the chemicals used
in its processing, however less pesticides and fertilisers are used, and it is still a sustainable
choice compared to most other fabrics. Bam Bamboo Clothing is a UK manufacturer
specialising in bamboo clothing but increasingly other clothing suppliers are stocking
bamboo fabric goods.

Linen is made from flax, another traditional fibre crop which needs few chemical fertilisers,
and less pesticide than cotton.

Organic wool is increasingly becoming available: it is produced using sustainable farming


practises and without toxic sheep dips. Cornish Organic Wool source organic wool from local
farmers who are Soil Association accredited or certified with Organic Farmers & Growers
Ltd (OF&G). They supply knitting kits and spun wool.

Recycled polyester Look out for full-on, hi-tech fleece jackets made from recycled drinks
bottles, e.g. some outdoor fleece products by Patagonia. (Patagonia also offer a recycling
service for their Capilene base layers, via their Common Threads garment recycling scheme.)
Outdoor gear company VauDes Ecolog range is both recycled and fully recyclable
everything, down to the zips and buttons, is 100% polyester. VauDe established the Ecolog
Recycling Network for complete recycling of pure polyester materials in 1996 .Even some hitech waterproofs can potentially be recycled if facilities exist. These include water-based
coatings (applied without harmful solvents) and membranes such as Sympatex, which is
100% polyester. Avoid PVC, laminates and polyurethane

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41

Financial Aspects
Strategy Business Funding Sources
Business funding sources we obtained from our personal funds. Also, we
borrow aditional capital to Bank BNI as amount IDR 500,000,000 because of our personal
funds are not sufficient to open this business with interest 10% per year and payment for
annually interest period and Financing percentage for own equity is 25%

Financial Projections
Financial aspects of the business proposal must be able to demonstrate the potential of
the fund owned, need external funding, feasibility calculations, including three performance
of the financial statements: balance sheet, income statement, and cash flow. In summary, it
can be given a simple format of financial feasibility of the calculation as follows:

1. Needs Fund and Source


Amount of funding needs, both need the funds for fixed assets and working capital and sources of
funding for this project financing details as follows:

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42

Name

Amount

Muhammad Alvicky

IDR50,000,000

Wahyunda Risa

IDR50,000,000

Shabrina Alin Firstiana

IDR50,000,000

Muhammad Irhas Ervan

IDR50,000,000

Equity Capital

2. Financial Project Analysis


A. Payback Period
Like other financial metrics for cash flow analysis such as internal rate of return IRR and
return on investment ROI, the payback period metric takes essentially an "Investment view"
of an action or investment and its expected cash flow stream. Each of these metrics compares
expected costs to expected returns in one way or another. Payback period for an action or
investment is the time required for cumulative returns to equal cumulative costs.e payback
period is an effective measure of investment risk. It is widely used when liquidity is an
important criteria to choose a project.
Payback period method is suitable for projects of small investments. It not worth spending
much time and effort in sophisticated economic analysis in such projects.
Payback period, as a tool of analysis, is often used because it is easy to apply and easy to
understand for most individuals, regardless of academic training or field of endeavor. When
used carefully or to compare similar investments, it can be quite useful. All else being equal,
shorter payback periods are preferable to longer payback periods. As a stand-alone tool to
compare an investment to "doing nothing," payback period has no explicit criteria for
decision-making (except, perhaps, that the payback period should be less than infinity)

Initial Investment = 200,000,000


cash flows
2013= 830,860,000
2014=103661000
2015= 120671000
2016-2018= 537,051,000
2019-2021=921012000
2022-2024=1213887000
so payback period is = 1,965,481,000 / 1,213,887,000
= 2.1Years..
The term is also widely used in other types of investment areas, often with respect to
energy efficiency technologies, maintenance, upgrades, or other changes. For example, a
compact fluorescent light bulb may be described as having a payback period of a certain
number of years or operating hours, assuming certain costs of 2.1 years is so short and its
good to be growth of our Rocktees development . Here, the return to the investment consists
of reduced operating costs. Although primarily a financial term, the concept of a payback
period is occasionally extended to other uses, such as energy payback period (the period of
time over which the energy savings of a project equal the amount of energy expended since
project inception). These other terms may not be standardized or widely used.

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43

B. Net Present Value


In finance, the net present value (NPV) or net present worth (NPW)[1] of a time series of
cash flows, both incoming and outgoing, is defined as the sum of the present values (PVs) of
the individual cash flows of the same entity.
In the case when all future cash flows are incoming (such as coupons and principal of a bond)
and the only outflow of cash is the purchase price, the NPV is simply the PV of future cash
flows minus the purchase price (which is its own PV). NPV is a central tool in discounted
cash flow (DCF) analysis and is a standard method for using the time value of money to
appraise long-term projects. Used for capital budgeting and widely used throughout
economics, finance, and accounting, it measures the excess or shortfall of cash flows, in
present value terms, above the cost of funds.
NPV can be described as the difference amount between the sums of discounted: cash
inflows and cash outflows. It compares the present value of money today to the present value
of money in the future, taking inflation and returns into account.
The NPV of a sequence of cash flows takes as input the cash flows and a discount rate or
discount curve and outputs a price; the converse process in DCF analysis taking a
sequence of cash flows and a price as input and
inferring as output a discount
rate (the discount rate
which would yield the
given price as
NPV) is called the
yield and is more
widely used in bond
trading.

Equity Fund:
Equity Capital = 200,000,000
Bank Loan = 500,000,000
Financial Equity for Bank Loan
= interest X (1- tax)
= 10 %X (1-30%)
= 0.07 = 7%
Financing Equity as Leverage Methods
= financing percentage own equity+ (percentage own equity/ bank loan)X(financing
percentage own equity-average industry)
= 25% + (0.3/0.7)X (25%-20%)
= 0.2714 = 27.14%

Equity Component

proportion

financing equity

amount

own equity capital

0.30

27.14%

8.1%

bank loan

0.70

7%

4.9%

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44

average amount of
equity used

13%

Discount Factor of NPV


Period

Net Cash Flow

DF

PV of Cash flow

2013

830,860,000

0.930

772,699,800.000

2014

103661000

0.85

88,111,850

2015

120671000

0.71

85,676,410

2016-2018

537,051,000

0.58

311,489,580

2019-2021

921012000

0.392

361,036,704

2022-2024

1213887000

0.29

352,027,230
1,971,041,574

so , NFV of this project =


=1,971,041,574 - 1,965,481,000
=5,560,574
and we conclude this project can be run well because NFV IS positive(+)
C. Profitability Index
also known as profit investment ratio (PIR) and value investment ratio (VIR), is the ratio of
payoff to investment of a proposed project. It is a useful tool for ranking projects because it
allows our company to quantify the amount of value created per unit of investment.
The ratio is calculated as follows:

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so = 1,971,041,574/1,965,481,000
= 1.0028
Assuming that the cash flow calculated does not include the investment made in the project, a
profitability index of 1 indicates breakeven. Any value lower than one would indicate that the
project's PV is less than the initial investment. As the value of the profitability index
increases, so does the financial attractiveness of the proposed project and we conclude the
project is can be allowed to run because point of PI >1.

D. Current Ratio
The current ratio is an indication of a firm's market liquidity and ability to meet
creditor's demands. Acceptable current ratios vary from industry to industry and are generally
between 1.5 and 3 for healthy businesses. If a company's current ratio is in this range, then it
generally indicates good short-term financial strength. If current liabilities exceed current
assets (the current ratio is below 1), then the company may have problems meeting its shortterm obligations. If the current ratio is too high, then the company may not be efficiently
using its current assets or its short-term financing facilities. This may also indicate problems
in working capital management.and in this case RockTees have 23 in 2013 its mean, 1 dollar
liabilities can pay asset for 23 dollar.
Low values for the current or quick ratios (values less than 1) indicate that a firm may have
difficulty meeting current obligations. Low values, however, do not indicate a critical
problem. If an organization has good long-term prospects, it may be able to borrow against
those prospects to meet current obligations. Some types of businesses usually operate with a
current ratio less than one.

E. Operating Ratio
The operating ratio is a financial term defined as a company's operating expenses as a
percentage of revenue. This financial ratio is most commonly used for industries which
require a large percentage of revenues to maintain operations, such as railroads. In
railroading, an operating ratio of 80 or lower is considered desirable.
The operating ratio can be used to determine the efficiency of a company's management by
comparing operating expenses to net sales. It is calculated by dividing the operating expenses
by the net sales. The ratio does not factor in expansion or debt repayment as amount 20.38 in
2013 RockTEES expressed as a ratio of sales to cost. In such case a higher ratio indicates a
better ability to generate revenue.

F. Longterm Liability Ratio


Long Term Debt to Total Asset Ratio is the ratio that represents the financial position of the
company and the companys ability to meet all its financial requirements. It shows the
percentage of a companys assets that are financed with loans and other financial obligations
that last over a

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46

Current Ratio analysis of Rocktees Company

The
Current
Ratio

current assets/
current
liabilities

cash
solven
cy

2013

2014

2015

2016-2018

2019-2021

20222024

23.96

21.04

16.38

27.22

24.74

11.31

operating Ratio analysis of Rocktees Company

The
Operating
Ratio

total revenue /
total expense

budget
solvenc
y

2013

2014

2015

20162018

2019-2021

2022-2024

20.38

20.52

19.96

18.94

19.18

18.18

year. As this ratio is calculated yearly, decrease in the ratio would denote that the company is
fairing well, and is less dependant on debts for their business needs. Amount in 2% asset can
be paid to notes payable as bank payment and in 2013 It is very helpful for management to
check its debt structure and determine its debt capacity. It also shows how many assets of
RockTEE company are finances with the help of debts. To calculate long term debt to total
assets ratio our company need to add together RockTEE current liabilities and long term
debts and sum up the current and fixed assets and divide both the total liabilities and the total
asset to get an output in percentage form.
The output is the assets that are financed by the debt financing while the other half is
financed by the investors in RockTees company. Having the long term debt to total asset ratio
as a high percentage should be worrying factor for the firm and the company should look in
to it and determine the reason of the high percentage and try to minimize it as much as
possible. The high value would mean that RockTEE company needs to have a good cash
inflow to meet all the expenses.

G. Cash Ratio
Cash ratio (also called cash asset ratio) is the ratio of a company's cash and cash equivalent
assets to its total liabilities. Cash ratio is a refinement of quick ratio and indicates the extent
to which readily available funds can pay off current liabilities. Potential creditors use this
ratio as a measure of a company's liqu

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Long term liability Ratio analysis of Rocktees Company

Long term
liability
ratio

long term
liabilities/ total
assets

long
run
solven
cy

2013

2014

2015

20162018

2019-2021

2022-2024

0.023

0.023

0.023

0.013

0.015

0.063

Cash Ratio analysis of Rocktees Company

The Cash
Ratio

(cash +cash
equivalent
+investment) /
current liabilities

cash
solvenc
y

2013

2014

2015

20162018

2019-2021

2022-2024

9.40

13.46

12.31

19.02

30.23

10.58

idity and how easily it can service debt and cover short-term liabilities.Cash ratio is the most
stringent and conservative of the three liquidity ratios (current, quick and cash ratio). It only
looks at the company's most liquid short-term assets cash and cash equivalents which can
be most easily used to pay off current obligations. and the result for RockTees is 9,4 for
2013 . There is no common norm for cash ratio. In some countries a cash ratio of not less
than 0.2 is considered as acceptable. But ratio that are too high may show poor asset
utilization for a company holding large amounts of cash on its balance sheet.

H. Quick Ratio
In finance, the Acid-test or quick ratio or liquid ratio measures the ability of a company to use
its near cash or quick assets to extinguish or retire its current liabilities immediately. Quick
assets include those current assets that presumably can be quickly converted to cash at close
to their book values. A company with a Quick Ratio of less than 1 cannot currently fully pay
back its current liabilities.

Note that Inventory is excluded from the sum of assets in the Quick Ratio, but included in the
Current Ratio. Ratios are tests of viability for business entities but do not give a complete
picture of the business' health. If a business has large amounts in Accounts Receivable which
are due for payment after a long period (say 120 days), and essential business expenses and
Accounts Payable due for immediate payment, the Quick Ratio may look healthy w

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QUICK Ratio analysis of Rocktees Company


ratio

definition

dimensi
on

2013

2014

2015

2016-2018

2019-2021

2022-2024

The quick
Ratio

(cash+cash
equivalent+investm
ent+account
receivables)/
current liabilities

cash
solvenc
y

10.97

14.05

12.71

20.63

32.03

10.80

hen the business is actually about to run out of cash. In contrast, if the business has negotiated
fast payment or cash from customers, and long terms from suppliers, it may have a very low
Quick Ratio and yet be very healthy.Generally, the acid test ratio should be 1:1 or higher,
however this varies widely by industry. and result for Rocktees Company that have some
higher than industry in 2013 within 10.97 for us and average industry is 10 . In general, the
higher the ratio, the greater the company's liquidity (i.e., the better able to meet current
obligations using liquid assets).

I. Account Payable Ratio


Accounts payable turnover is the ratio of net credit purchases of a business to its average
accounts payable during the period. It measures short term liquidity of business since it
shows how many times during a period, an amount equal to average accounts payable is paid
to suppliers by a business.
Accounts payable turnover is a measure of short-term liquidity. A higher value indicates that
the business was able to repay its suppliers quickly so we conclude that RockTees in amount
of turnover 87 and company is liquidity and can pay the bill shortly. Thus higher value of
accounts payable turnover is favorable. This ratio can be of great importance to suppliers
since they are interested in getting paid early for their supplies. Other things equal, a supplier
should prefer to sell to a company with higher accounts payable turnover ratio.Payment
requirements will usually vary from supplier to supplier, depending on its size and financial
capabilities. A high ratio means there is a relatively short time between purchase of goods and
services and payment for them. Conversely, a lower accounts payable turnover ratio usually
signifies that a company is slow in paying its suppliers. But a high accounts payable turnover
ratio is not always in the best interest of a company.

J. Account Receivable Ratio


The receivable turnover ratio (debtors turnover ratio, accounts receivable turnover ratio)
indicates the velocity of a company's debt collection, the number of times average receivables
are turned over during a year. This ratio determines how quickly a company collects
outstanding cash balances from its customers during an accounting period. It is an important
indicator of a company's financial and operational performance and can be used to determine
if a company is having difficulties collecting sales made on credit.And also the result of ratio
RockTees company which have amount 22 in 2014 indicates how many times, on average,
account receivables are collected during a year. There is no general norm for the receivables
turnover ratio, it strongly depends on the industry and other factors. The higher the value of
receivable turnover the more efficient is the management of debtors or more liquid the
debtors are, the better the company is in terms of collecting their accounts receivables.
Similarly, low debtors turnover ratio implies inefficient management of debtors or less liquid

BUSINESS FEASIBILITY STUDY

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debtors. But in some cases too high ratio can indicate that the company's credit lending
policies are too stringent, preventing prime borrowing candidates from becoming customers.

K. Current Asset Ratio


This ratio measures how efficiently a firm uses its current assets to generate sales, so a
higher ratio is always more favorable. Higher ratios mean the company is using its assets
more efficiently. Lower ratios mean that the company isn't using its current assets efficiently
and most likely have management or production problems.
For instance, a ratio of 1 means that the net sales of a company equals the average total assets
for the year. In other words, the company is generating 1 dollar of sales for every dollar
invested in assets. Like with most ratios, the current asset ratio is based on industry
standards. Some industries use assets more efficiently than others. To get a true sense of how
well a Rocktees also get 1.49 with compare on industry average is 1. assets are being used, it
must be compared to other companies in its industry. The total current asset ratio is a general
efficiency ratio that measures how efficiently a company uses all of its assets. This gives
investors and creditors an idea of how a company is managed and uses its assets to produce
products and sales.

Conclusion
This Business Feasibility study is about research for Rock Tees Company s entry into
Sumatra Barat market. Research includes both quantitative methods and qualitative methods
via sending questionnaires to target customers who are the local people living in Padang
directly marketing . Based on the preparation and also doing research of this fashion industry
business there are advantages and disadvantages among this entry activity.

Account payable Ratio analysis of Rocktees Company

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The advantages for RockTee s entry activity are: first, RockTees is the only one store which
has rock band concepts in Padang and there are many people welcoming to have a sales
point in Padang city near of Andalas University ; One of the most important factors in
building a successful t-shirt business is the ability to stand out from the many competitors and
one of the best ways to do that is by choosing and catering to a specific niche.A strong,
interesting brand is vital in the t-shirt industry. Our brand is a promise that will tie together all
our choices including our niche, designs and quality. Everything has two sides so there are
also disadvantages for this entry activity. First, there are already some familiar style clothes
brands stay in Padang city such as Distro , so the competition will be necessary to be faced.
Second, the purchase ability of Padang people is a little low so the promotion work should be
strength and pricing strategy may have to change a little.
Financial aspect which RockTees already conducted , also mention about analysis
how much time needed to payback which Rocktees result is shortly and it means easy to
developing this business and also future value for cash-flow where positive and it means
Rocktees is also can be standard to improving financial cycle of this business and also
Continue to investigate funding and financing opportunities for manure management
facilities. Management aspect also is brightly explanation by RockTees company which have
management strategies appear to offer significant economies of scale with respect to capital
costs compared to the management systems. In general, while comparing similar manure
management strategies with others competitor. for the Rocktees develop operational plans,
establish contracts with third party as retailer if a third-party delivery option were selected
for the project, the Rocktees itself may engage several potential third-party developers and
request preliminary proposals based on the Business Feasibility Study Report.
The final conclusion for this Rock Tees Business Feasibility study will be a challenge
and a balanced consideration in multiple aspects will be important for their managers to
make a decision. As all businesses must face risks during the process, it is worthwhile to note
that any risks or challenges would change into opportunities that managers could operate on
after know every procedure well. Various options mentioned herein are subject to choice of
management. We have tried to analyze each aspect of them and have given a brief analysis
for costs and associated benefits.

account receivable Ratio analysis of Rocktees Company

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Current Asset Ratio analysis of Rocktees Company


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