COLLEGE OF ENGINEERING BHUBANESWAR [CEB]

PLOT -1, SECTOR -B, CNI COMPLEX, PATIA, BHUBANESWAR- 751024

www.coeb.org

This is to certify that the project report entitled Investment Casting of

Lost Wax Type is a bonafide record of work done by the 8 th semester
students of 4th year in partial fulfillment of Bachelor of Technology in
Mechanical Engineering during the academic year of 2005-2009 at
College of Engineering, Bhubaneswar .

Project Guide

Er. M. M.

Mohapatra
Er. Samir Mohanty

Head of Department

Senior Lecturer in Mech. Engg.

Mechanical Engineering

1 | Page

This is to certify that the following students have

successfully completed the Entrepreneurship Project on
Investment Casting of Lost Wax Type
Praveen Kumar --------------------------------------------------------0501219239
Rashmi Kant Rout-----------------------------------------------------0501219243
Manoj Kumar-----------------------------------------------------------0501219245
Himanshu Sekhar Pradhan-----------------------------------------0501219266
Rajesh Ranjan Samal-------------------------------------------------0501219271
Anand Ratna------------------------------------------------------------0501219272
Namrata Sinha---------------------------------------------------------0501219273
Abhishek Rezi----------------------------------------------------------0501219274
Abhijit Roy--------------------------------------------------------------0501219275
Manish Kumar Singh------------------------------------------------ 0501219276
Piyush Priyadarshi----------------------------------------------------0501219279
Pritpal Singh------------------------------------------------------------0501219280

Project Guide

Er. M. M.

Mohapatra
Er. Samir Mohanty

Head of Department

Senior Lecturer in Mech. Engg.

Mechanical Engineering

2 | Page

During

the

final

semester

of

B.TECH

in

MECHANICAL

ENGINEERING a curriculum assignment has to be taken as an

entrepreneurship project. Our Entrepreneurship project is Investment
Casting of Lost Wax Type a complete task of starting from concept
analysis to project preparation; the entire has been done under the
guidance of our project guide Mr. Samir Mohanty (Senior Lecturer in
Mechanical Engineering College of Engineering Bhubaneswar) .
In today's scenario, the Investment Casting is used in the aerospace and
power generation industries to produce turbine blades with complex
shapes or cooling systems. Blades produced by investment casting can
include single-crystal (SX), directionally solidified (DS), or conventional
equiaxed blades. It is also widely used by firearms manufacturers to
fabricate firearm receivers, triggers, hammers, and other precision parts at
low cost. Other industries that use standard investment-cast parts include
military, medical, commercial and automotive. Investment casting offers
high production rates, particularly for small or highly complex
components, and extremely good surface finish with very little machining
The R.K Engineers & Manufacturers offers Investment Casting Products of
highly complex type.
While preparation of this project every care has been taken to avoid any
mistakes and errors. Some errors might have crept in advertently.

================================
3 | Page

We gratefully acknowledge the authorities of College of

Engineering

Bhubaneswar

of

the

Mechanical

Engineering

Department for their wide co-operation in the completion of this

project.
We express our deep sense of gratitude to our project guide Mr.
Samir Mohanty & Mr. Rajesh Kumar Behera (Senior Lecturer in
Mechanical Engineering-College of Engineering Bhubaneswar
[CEB]) who constantly guided & advised us at various levels in the
successful completion of the entrepreneurship project.
We thank the entire staff of Mechanical Department for helping
us in this project.
Last but not the least we want to thank all those who have directly
or indirectly helped us during the course of our entrepreneurship project
work.

********************************

4 | Page

TABLE

OF

CONTENTS

1. WHAT IS ENTREPRENEURSHIP ?....................................................

2. WHO IS AN ENTREPRENEUR ?.........................................................
3. NEED OF ENTREPRENEURSHIP...
4. TYPES OF ENTREPRENEURSHIP.
5. FACTORS AFFECTING ENTREPRENEURSHIP
6. BASIC PROBLEMS OF MARGINAL ENTERPRENEURSHIP
7. IMPACT OF BIG ENTREPRENEURSHIP ACTIVITY..
8. INVESTMENT CASTING OF LOST WAX TYPE- COMPANY PROFILE
9. WHAT IS INVESTMENT CASTING...
10. BENEFITS OF THE PROCESS.
11. PROCESS CHARACTERISTICS.
12. FUTURE PROCESS AND DEVELOPMENT
13. OVERVIEW OF THE INVESTMENT CASTING PROCESS...
14. SCOPES OF INVESTMENT CASTING..
15. TOTAL COST TO ESTABLISH THE PLANT
16. CONCLUSION.
17. BIBLIOGRAPHY.

5 | Page

WHAT IS ENTREPRENEURSHIP
Entrepreneurship is the practice of starting new organizations or
revitalizing mature organizations, particularly new businesses generally in
response to identified opportunities. Entrepreneurship is often a difficult
undertaking, as a vast majority of new businesses fail. Entrepreneurial
activities are substantially different depending on the type of organization
that is being started. Entrepreneurship ranges in scale from solo projects
(even involving the entrepreneur only part-time) to major undertakings
creating many job opportunities. Many "high-profile" entrepreneurial
ventures seek venture capital or angel funding in order to raise capital to
build the business. Angel investors generally seek returns of 20-30% and
more extensive involvement in the business. Many kinds of organizations
now exist to support would-be entrepreneurs, including specialized
government agencies, business incubators, science parks, and some NGOs.
Entrepreneurship in a broader sense can be described as a process of action
an entrepreneur undertakes to establish his enterprise. It is a creative and
innovative response to the environment. Entrepreneurship is the inclination
(attitude) of mind to take calculated risk with confidence to a
predetermined business or individual objective. Entrepreneurship means
the function of creating something new, organizing and co-ordinating,
undertaking risk and handling economic uncertainty.

WHO IS AN ENTREPRENEUR ?
An entrepreneur is a person who has possession over a new enterprise or
venture and assumes full accountability for the inherent risks and the
6 | Page

outcomes. The term is a loanword from French and was first defined by the
Irish economist Richard Cantillon. A female entrepreneur is sometimes
known as an entrepreneuse. However, with the word "entrepreneuse" being
the French feminine form of entrepreneur, its usage in English in
delineating sexes detracts from the meaning of the word "Entrepreneur."
Entrepreneur in English is a term applied to the type of personality who is
willing to take upon her self or himself a new venture or enterprise and
accepts full responsibility for the outcome.
The modern myths about entrepreneurs include the idea that they assume
the risks involved to undertake a business venture, but that interpretation
now appears to be based on a false translation of Cantillon's and Say's
ideas. The research data indicate that successful entrepreneurs are actually
risk averse. They are successful because their passion for an outcome leads
them to organize available resources in new and more valuable ways. In
doing so, they are said to efficiently and effectively use the factors of
production. Those factors are now deemed to include at least the following
elements: land (natural resources), labour (human input into production
using available resources), capital (any type of equipment used in
production i.e. machinery), intelligence and knowledge, and creativity. A
person who can efficiently manage these factors in pursuit of a real
opportunity to add value in the long-run, may expand (future prospects of
larger firms and businesses) and become successful.
Entrepreneurship is often difficult and tricky, as many new ventures fail.
Entrepreneur is often synonymous with founder. Most commonly, the term
entrepreneur applies to someone who creates value by offering a product
or service. Entrepreneurs often have strong beliefs about a market
opportunity and organize their resources effectively to accomplish an
outcome that changes existing interactions.
Some observers see them as being willing to accept a high level of personal,
professional or financial risk to pursue that opportunity, but the emerging
evidence indicates they are more passionate experts than gamblers.
7 | Page

Business entrepreneurs are viewed as fundamentally important in the

capitalistic society. Some distinguish business entrepreneurs as either
"political entrepreneurs" or "market entrepreneurs," while social
entrepreneurs' principal objectives include the creation of a social and /or
environmental benefit. Entrepreneurs are men of vision, drive and talent,
who spot our opportunities and promptly grasp them for exploition.
Entrepreneur is an individual who introduces something new into the
economy, a new method of production, a new product with which the
consumers are not familiar, a new source of raw-material or new market
and the alike.

NEED OF AN ENTREPRENEUR
Entrepreneurs play an important role in developing and contributing to the
economy of a nation. It is all the more in a developing world where are
ample opportunities for innovations to exploit the available resources and
initiate entrepreneurial ventures. But the emergence of entrepreneurship in
all countries and in all parts of any country is not usually even. Commonly
we see more entrepreneurs in comparatively more developed areas.
Another paradox exists in terms of increasing number of unemployed
population, seeking wage earners career and unaware of the wide
opportunities for entrepreneurial career. This is, by and large, because of
lack of education about entrepreneurship.
The business entrepreneur, the archetypal enterprising person, has become
the focus of interest in many nations as an instigator of social and economic
change. The search is on for more and better ways of creating enterprising
people and specially for developing entrepreneurs. For this, the role of
education and training is typically very important. Education is a strong
influencing media that sets values, develops attitudes and motivation and
8 | Page

induce people to acquire skills and competencies to achieve goals. The

word education can be linked to the word enterprise in three ways
Education about enterprise in which the role of education is in raising
awareness of enterprise and entrepreneurship as a key change agent in
economic process.
Education through enterprise in which the education process itself can be
enhanced by using pedagogic styles which work in and makes use of
enterprising situations including the student concerned and real world
project driven approaches
Education

for

enterprise

which

is

aimed

at

entrepreneurship

development and includes training existing entrepreneurs as well as for

new business start-up.

TYPES OF ENTREPRENEUR
I have made the point that the one trait common to all entrepreneurial
hearts is a drive toward independence, and I added that varying levels of
that independent spirit serve to create a scale on which we could find and
define different types of entrepreneurs. Id like to expand on those
thoughts.
The notion of differing types of entrepreneurs is only important if one is
in some way connected to the world of self-employment. And frankly,
unless a person has a direct use for this type of information, the subject is
boring. But guess what? At least 25% of Americans are plugged directly
into the subject as small business owners, employees of those businesses, or
family members of entrepreneurs. As stated before, using a broad brush to
define the entrepreneurial personality will not work for serious
9 | Page

entrepreneurs because it leaves too many possibilities to examine, too many

roads to travel that are unnecessary as one decides on their future. In a
nutshell, it is neither forward thinking nor efficient to lump together, all the
players and all the personalities. Making broad assumptions about the
entrepreneurial personality can also lead to danger and business failure.
Over time I have identified at least five distinct entrepreneurial types, and
that discovery represents a major step up from the quick fix tests that
claim to evaluate ones entrepreneurial personality in a few minutes time.
You know the tests Im talking about. The ones found in pop magazines.
The multiple choice questionnaires that help puff up the ego and encourage
us to think of ourselves as independent, entrepreneurial leaders with all
the right stuff. Folks, not all of us have the right stuff for the
entrepreneurial lifestyle, but then again, most entrepreneurs do not possess
the right stuff to make it as great corporate staffers at the highest levels.
Why? Because they tend to upset the apple cart and make other staff
uncomfortable.
The question is not whether a test says a person can be or should be an
entrepreneur. The issue is whether or not a person knows in their heart
what type of entrepreneur they are, if any, before the journey begins.
There is little or no value associated with a 15-minute personality test that
gives people a green light to buy a franchise. Could that test possibly
provide better analysis than a system that allows a person to think
through ownership issues on their own? There is little value in those tests,
and there is little value in pursuing an entrepreneurial lifestyle based on
what other people claim to be hot new opportunities. It is the opinion of
the prospective entrepreneur that matters most, but unfortunately we have
been conditioned to accept salesmanship and promotion rather than
thinking for ourselves. The more informed and definite we become
concerning our traits and objectives, the better choices we are able to make.
First, is the Intrapreneur!! Although tied to the other owned organization
where they are employed, the intrapreneur enjoys independent
10 | P a g e

responsibilities where risk and reputation are part of the assignment. What
kinds of assignments would those be? Heading up a take-over or merger.
Implementation of a new business development plan.
Finally, the Practical Visionary (?) with the question mark following the
term grabs for the greatest measure of independence. This person follows
their heart and their dream with great gusto, but the question mark is
attached because until the vision is proven, its practical value and
acceptance by the marketplace remains a question.

FACTORS AFFECTING ENTREPRENEURSHIP

Psychology
Human Capital
Life Course Stage
Environment
Social Networks (Gender)
Ethnic
Resources

Culture and Entrepreneurship

Culture: shared cognitions, values, norms and expressive symbols of a
society or Subgroup

Culture as a Socialization Agent

Supply-side Mechanism: Individuals are socialized into a societys or
groups culture which encourages entrepreneurship
Examples:
11 | P a g e

 Protestant Ethic and Capitalism (Weber)

Soviet / communist culture and effect on

Entrepreneurship Culture as Legitimating Agent

Demand-side Mechanism: Environmental factors (widely-held rules and
beliefs) affect the demand for entrepreneurial activity.
Individuals, organizations, products, and markets conform to these rules
and beliefs in order to gain legitimacy and gain access to resources in order
to survive.
To gain legitimacy new ventures must present themselves within societal
norms, so others can believe in their future success as a business

Rationalized Environments
Institutional Theory in Sociology
Focuses on cognitive, normative, and regulatory structures
that provide meaning to social behavior
Main Thesis
Environments in which organizations must operate have
become rationalized, i.e., organizations are subject to prescribed rules
and ideologies regarding proper organizational practices or forms;
Rationalization leads to a world society, an orderly society

Loci of Rationalization
Elite Organizations
Provide models for successful organizing
12 | P a g e

 Nation-State
Constructs laws and policies for the public good
Sciences and Professions
Knowledge system as demystifying nature; truths about how the social
system works

BASIC PROBLEMS OF SMALL ENTREPRENEURSHIP

ones.

Probably the most uncomfortable are the political and ethnical

According to different surveys, the most frequent complaints

concern constantly changing laws, high tax rates, lack of capital,
complicated access to credit, lack of working capital, high competition, and
bureaucracy.
The basic problem is the huge and constantly growing amount of
administrative costs, the extraction of extra-legal fees for permissions and
approvals, and the high pressure of corruption. The state's participation in
business, its interference in competition and its violation of the rights of
entrepreneurs are serious barriers. Currently, the pressure on leu,
Romanian national currency. After 15 years of constant depreciation of the
leu, since last autumn we have been witnessing the opposite situation.
Entrepreneurs are having a hard time to adapt, especially the ones who
export in Europe. Access to capital, a labor code that is very much in favor
of the employees, and competition from China and other Asian countries
are other constraints to developing entrepreneurship.

13 | P a g e

IMPACT OF BIG ENTREPNUERSHIP ACTIVITY

The importance of entrepreneurship for achieving economic growth in
contemporary economies is widely recognized, both by policy makers and
economists. However, empirical evidence linking entrepreneurship to
economic growth is scarce. This paper investigates the relation between
entrepreneurship and economic growth at the country and regional level. It
contributes to the understanding of how entrepreneurship may affect
economic growth. It is investigated whether the impact of entrepreneurship
on economic growth varies with the development level of an economy, with
the sector of economic activity, and with the quantity and quality of
entrepreneurial supply.

14 | P a g e

Investment Casting of Lost Wax Type

COMPANY PROFILE
Investment casting is used in the aerospace and power generation
industries to produce turbine blades with complex shapes or cooling
systems. Blades produced by investment casting can include single-crystal
(SX), directionally solidified (DS), or conventional equiaxed blades. It is also
widely used by firearms manufacturers to fabricate firearm receivers,
triggers, hammers, and other precision parts at low cost. Other industries
that use standard investment-cast parts include military, medical,
commercial and automotive.
Investment casting offers high production rates, particularly for small or
highly complex components, and extremely good surface finish with very
little machining.
R.K Engineers & Manufacturers is a quality manufacturer of Investment
Casting & Precision Investment Castings by lost wax process. R.K
Engineers & Manufacturers offers highest quality of engineering by its ultra
modern plant equipped with all latest Investment Casting Equipments and
high tech laboratory.
R.K Engineers & Manufacturers is an Investment casting company in India
producing Ferrous & Non Ferrous castings. We are involved in Producing
Cheap and very high Quality Investment castings as on customized
requirements for Auto, Engineering, Pumps, Valves, Medical Equipments,
and Chemical Industry etc.

15 | P a g e

What Is Investment Casting ?

Investment casting converts molten metal in a single operation to precision
engineered components with a minimum wastage of material and energy
and subsequent machining. It has a versatility approached by few other
metal forming processes. Intricate or re-entrant contours can be
incorporated. These features offer great freedom of design with the
process. The versatility of the technique extends to materials, since virtually
any alloy can be cast. Castings of over 250 kg and an envelope of 1 cubic
metre are common place.
The IC process is distinguished by the use of an expendable pattern. A
metal die is usually used to produce the pattern, now almost universally of
wax. These injection dies are normally made of duralumin or brass.
Preformed ceramic or water soluble cores may be used to give precision
internal cavities and these are located in the wax die prior to injection.
Patterns can be mounted onto a runner system to give an assembly ready
for subsequent coating with refractory.
Industrial investment casting is based on the ceramic shell process where
the wax assembly is dipped into thin refractory slurry and after draining,
fine grains of refractory are deposited onto the damp surface, providing a
primary refractory coating. The primary coat typically contains a zircon
based refractory while the binders used are either alcohol based (ethyl
silicate) or water based (silica sol) or a hybrid of these. When the primary
coat has hardened or set, subsequent cycles of wet dipping and dry
sanding build up the thickness of the invested material to provide a
refractory shell that, when fully hardened, is sufficiently strong to hold the
liquid metal during casting.
At the end of the investing process, the wax pattern material is removed by
thermal means, steam autoclaving being usual. The mould is heated to a
16 | P a g e

high temperature to eliminate any residual wax and to induce chemical and
physical change in the refractory that will ensure maximum strength and
stability combined with minimal reaction between the mould surface and
the liquid metal to be poured into the investment casting for lost wax type.
The majority of investment casting foundries has air melting facilities and
cast a wide range of materials. Steel casting furnaces tend to be of the roll
over or tilt induction melting type, whilst for many of the more advanced
nickel super alloys, vacuum melting / casting is essential. In the case of
aluminum investment castings, melting may be by gas or electricity, while
various methods of pouring the molten metal are in use (e.g. it may be
gravity vacuum or pressure assisted) These are the methods of pouring.
When the mould has cooled sufficiently, the mould material is removed to
leave the castings which are then separated from the running system.
Various postcasting operations may be carried out to meet customer
requirements.

17 | P a g e

Benefits of the Process

The benefits of the investment casting process may be summed up by the
four words accuracy, versatility, integrity and finish. Few if any alternative
metal forming methods can offer such a unique and broad spectrum of
advantages. Accuracy and versatility stem from the use of a one piece
mould without a joint line or the need for draft angles. These features not
only give rise to a component shape that is aesthetic and uniform; they also
allow the process to give, on a regular basis, consistent and repetitive close
tolerances, intricate and re-entrant contours (many impossible to create
economically by alternative manufacturing techniques) and competitive
cost ratios. Versatility extends to the choice of materials since virtually all
alloys can be investment cast.
Utilising the aluminum die form ensures tooling is relatively cheap and is
adaptable should design changes be necessary. It also enables relatively
small quantities, typically for research and development trials, to be
produced prior to commitment to production quantities.
Casting integrity is an important feature of the process and investment
casting has a long history of serving the most demanding sectors of
industry. This has promoted a tradition of quality and reliability, an aspect
that by recent work to develop production methods of guaranteed integrity
has resulted in fatigue performances equal to that given by forgings
measured longitudinally. Based on this work, investment castings are now
beginning to replace forgings and machined components in fatigue related
environments.
Other advantages arise from the high degree of dimensional accuracy, + or
- 0.13 mm per 25 mm with improvements up to + or - 0.08 mm per 25 mm
and the excellent surface finish that can be routinely achieved, typically 1.5
to 3.2 microns with improvements up to 0.8 microns.
Typical minimum wall thickness of 1.5 mm with thinner sections of 1 mm
is possible. Tolerances quoted should be taken as a guide, as they may vary
18 | P a g e

depending on the complexity and configuration of the component.

Consistency from casting to casting will generally be within the tolerances
indicated with individual foundries being able to advice on this point.
These characteristics minimize the requirements for machining, in some
cases eliminating it entirely, and this leads to substantial savings in raw
materials, labour costs and capital expenditure, reduces and simplifies
production
control
and
simplifies
assembly
operations.
These benefits individually offer great competitive advantages; collectively
they suggest an overwhelming case for the consideration of investment
casting as the most economic method of forming for a wide range of metal
components.

Process Characteristics

FREEDOM OF DESIGN

HIGH PRODUCTION RATES

HIGH DIMENSIONAL
ACCURACY

HIGH DIMENSIONAL
CONSISTENCY

HIGH INTEGRITY CASTINGS

EXTREMELY GOOD SURFACE

FINISH CAN BE OBTAINED

19 | P a g e

COMPLEX SHAPES CAN BE

CAST
LONG/SHORT RUNS CAN BE
ACCOMMODATED
MACHINING CAN BE
REDUCED OR ELIMINATED
MINIMUM FINISHING OF
CASTINGS REQUIRED
ALMOST ANY ALLOY CAN
BE CAST
ENVIRONMENTALLY
FRIENDLY PROCESS

Most industries requiring castings are catered for but investment castings
are admirably suited for high technology, high volume orders especially in
respect of the aeronautical industry. The petroleum, chemical, electronic,
defence, prosthetic and automobile industries are also large users of
castings produced by the process.

Future Potential &

Development
With the development of rapid prototyping techniques for the production

of patterns and shells it is now possible to produce investment castings

quickly with lead times reduced to less than two weeks.
Work done in BICTA Committees on high integrity castings utilizing
vacuum produced ingot and melting and Hipping will ensure the process
will further replace welded and forged components extending the field of
use of investment castings in the forming of the lost wax type.
Casting size and weight will increase with 1 cubic metre plus envelopes
and 500Kg castings becoming commonplace in steel. With the use of
improved melting techniques and larger melting and casting facilities
investment castings can be shown to be the fastest growing metal forming
technique and investment casting now represents some 15% of all metal
cast in the UK.

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OVERVIEW OF THE INVESTMENT CASTING

PROCESS
Investment casting, often called lost wax casting, is regarded as a precision
casting process to fabricate near-net-shaped metal parts from almost any
alloy. Although its history lies to a great extent in the production of art, the
most common use of investment casting in more recent history has been the
production of components requiring complex, often thin-wall castings.
While a complete description of the process is beyond the scope of the
discussion here, the sequential steps of the investment casting process will
be briefly described, with emphasis on casting from rapid prototyping
patterns.
The investment casting process begins with fabrication of a sacrificial
pattern with the same basic geometrical shape as the finished cast part.
Patterns are normally made of investment casting wax that is injected into a
metal wax injection die. Fabricating the injection die often costs tens of
thousands of dollars and can require several months of lead time. Once a
wax pattern is produced, it is assembled with other wax components to
form a metal delivery system, called the gate and runner system. The entire
wax assembly is then dipped in ceramic slurry, covered with sand stucco,
and allowed to dry. The dipping and stuccoing process is repeated until a
shell of ~6-8 mm (1/4-3/8 in) is applied.
Once the ceramic has dried, the entire assembly is placed in a steam
autoclave to remove most of the wax. After autoclaving, the remaining
amount of wax that soaked into the ceramic shell is burned out in a
furnace. At this point, all of the residual pattern and gating material is
removed, and the ceramic mold remains. The mold is then preheated to a
specific temperature and filled with molten metal, creating the metal
casting. Once the casting has cooled sufficiently, the mold shell is chipped
away from the casting. Next, the gates and runners are cut from the casting,
21 | P a g e

and final post processing (sandblasting, machining) is done to finish the

casting.

Investment Casting Process Description

Investment Casting Process Description

22 | P a g e

Investment Casting Process Description

Scopes of Investment Casting

Design flexibility
Investment casting produces near-net-shape configurations, offering
designers and engineers freedom of design in a wide range of alloys. The
process is capable of producing precise detail and dimensional accuracy in
parts weighing many pounds or just a few ounces.

Wide choice of alloys

More than 120 ferrous and nonferrous metals are routinely cast at
Hitchiner.

Elimination of tooling setup

23 | P a g e

By offering near-net-shape configuration, fixturing costs are substantially

reduced or eliminated.

Reduction of production costs

Costly machining operations are reduced and often eliminated. No capital
equipment investment is needed to produce parts in-house.

Reduction of assembly operations

Several parts can be made as one casting, reducing handling, assembly and
inspection costs.

Reproduction of fine details

Splines, holes, bosses, lettering, serrations and even some threads can be
cast.

Process Comparison Chart

Tool
Cost

Unit
Cost

Metal
Options

Design
Freedom

Volume
Capabil.

Draft
Req'd

Tolerance
Control

Size
Range

Surface
Finish

Wall
Min.

Normal
Delivery

Investment
Cast

Avg.

High

Most

Most

All

No

Avg.

Avg.

Avg.

Small*

Avg.

Die Cast

High

Low

Few

Least

High

Yes

Avg.

Avg.

Avg.

Avg.

Avg.

Forging

High

Avg.

Avg.

Least

High

Yes

Poor

Avg.

Poor

Large

Long

Permanent
Mold

Avg.

Avg.

Avg.

Avg.

All

Yes

Avg.

Avg.

Avg.

Large

Avg.

Plaster
Mold

Low

High

Few

Avg.

Low

Yes

Avg.

Avg.

Avg.

Large

Short

Powder
Metal

Avg.

Low

Avg.

Least

High

No

Best

Small

Best

Small

Avg.

Resin Shell
Mold

Avg.

Avg.

Avg.

Avg.

All

Yes

Avg.

Avg.

Poor

Large

Avg.

Sand Cast

Low

Avg.

Most

Avg.

All

Yes

Poor

Large

Poor

Large

Short

Process

24 | P a g e

Rights of Land
We are on the process of submitting a memorandum for acquiring 30,000
sq. meters of land at Adityapur Industrial Area Development (AIDA),
Jamshedpur. This will be completed after the state government sanctions
us a plot to set up our manufacturing unit.

Required Approvals & Licensing

NOC for acquiring land.
NOC from the inspector for factories and boilers.
Clearance from the state pollution control board (OSPCB).

PROJECT IMPLEMENTATION AND

ORGANISATIONAL ASPECTS
Basis and Presumptions
i) The basis for calculation of production capacity has been taken on single
shift basis on 75% efficiency.
ii) The maximum capacity utilization on single shift basis for 300 days a
year. During first year and second year of operations the utilization is 60%
and 80% respectively. The unit is expected to achieve full capacity
utilization from the third year onwards.
iii) The salaries and wages, cost of raw materials, utilities, rents, etc. are
based on the prevailing rates in and around Bhubaneswar. These cost
factors are likely to vary with time and location.
iv) Interest on term loan and working capital loan has been taken at the rate
of 16% on an average. This rate may vary depending upon the policy of the
financial institutions/agencies from time to time.
25 | P a g e

v) The cost of machinery and equipments refer to a particular make/model

and prices are approximate.
vi) The break-even point percentage indicated is of full capacity utilization.
vii) The project preparation cost etc. whenever required could be
considered under pre-operative expenses.

ANNEXURE- 2
Implementation Schedule
The major activities in the implementation of the project have been listed
and the average time for implementation of the project is estimated at 12
months:

Sl.No.

Name of Activity

Period in
Months
(Estimated)

1.

Preparation of project report

2.

Registration and other formalities

3.

Sanction of loan by financial institutions

4.

Plant and Machinery:

(a) Placement of orders

26 | P a g e

(b) Procurement

(c) Power connection/ Electrification

d) Installation/Erection of machinery/Test
2
Equipment
5.

Procurement of raw materials

6.

Recruitment of Technical
Personnel etc.

7.

Trial production

11

8.

Commercial production

12

Application Areas
Idol
Ornaments
Jewellery
Blade of Turbine
Blade of Jet

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Cost Required for the Establishment of the

Plant

Fixed cost
Cost of equipments required

Items

Numbers

Cost/item (in
Rs.)

Total Cost (in Rs)

Shovel

50

500

25,000

Riddle

50

500

25,000

Floor rammer

50

1000

50,000

Bench rammer

50

800

40,000

Swab

150

750

1,12,500

Gate cutter

150

150

22,500

Inside square

500

250

1,25,000

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Box flask

50

2000

1,00,000

Trowel

50

5000

2,50,000

Lifter

150

115

17,250

Sand cutter

150

150

22,500

Furnace

1,000,000

10,00,000

Moulding flask

500

5000

25,00,000

Land

1,00,000 sq. feet

400

4,00,00,000

Cost of const. of
line

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35,00,000

Variable Cost
Items
Labour Cost

Numbers

Cost/Item (in Rs) Total Cost (in Rs)

50

5,00,000

Electricity

7,00,000

Water Bill

50,000

Stationary

25,000

Sand

50 TR

Wax

1 TR

1500/TR

75,000
8,00,000

Misc.

2,00,000

Total Capital Required to Establish the Company

=
Fixed Cost + Variable Cost
=
Rs. 5, 01, 39,750

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Breakeven Analysis of Product (Turbine Blade)

What Is Breakeven analysis: - The break-even point for a product is the point

where total revenue received equals the total costs associated with the sale
of the product (TR=TC) Break-even point is typically calculated in order for
businesses to determine if it would be profitable to sell a proposed product,
as opposed to attempting to modify an existing product instead so it can be
made lucrative. Break-Even Analysis can also be used to analyze the
potential profitability of an expenditure in a sales-based business.

Calculation Of breakeven Point Of The Product:Cost Of Per Turbine Blade

Total Cost

= Rs.50, 0000
=Fixed Cost+Variable Cost
=Rs5, 01, 39,750

Break even point

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5, 01, 39,750/50,000 =1003 No of turbine blade.

The project is prepared through the collection of different

departmental policies of government as well as technical
consultancy from various organizations and during these project
financial policies of different financial institute and banks.
This project is an analytical representation of data collected from
various sources so that during real time implementation further
clarifications must be done to make the project a success. Hence,
after going through a detailed study we find that the location is
suitable for the fructification of our project.

============================

32 | P a g e

1. Industrial Engineering & Management, O.P. Khanna.

2. Entrepreneurship of Electronic Industries, M.V. Deshpande ,

Deep & Deep Publications

3. www.techno-preneur.com

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