Initial Information of Kabra ExtrusionTechnik Ltd By [Group-10, Section B] Antrish Singhal, WMP6071 Archit Khandelwal, WMP6072 Parul Kumar

Bhatia, WMP6094 Pradeep Aggarwal, WMP6096 A report submitted in fulfillment of the assignments for MANAC-2 WMP 2013

Indian Institute of Management, Lucknow Noida Campus 2010

Date: 04-09-2010

Table of Contents
1 2 Assignment ........................................................................... 3 Analysis ............................................................................... 3
2.1 Products .............................................................................. 3
2.1.1 2.1.2 PVC Casing-Capping ................................................................ 3 PVC Electrical Conduit Pipe ........................................................ 4

2.2 2.3

Production Process ................................................................. 4 Cost Sheet ........................................................................... 8

Assignment
The assignment is to provide initial information obtained from the company.

Analysis

2.1

Products
The company at one of its factory manufactures following products: 1. PVC Casing-Caping 2. PVC Electrical Conduit Pipe

2.1.1

PVC Casing-Capping

Applications: y y y Open wiring in industrial / residential and commercial buildings. Street light and traffic light signals. Wiring on buses, railway coaches, ships, aircraft etc. .

y y y

Can be used in telecoms wiring and terminals. Can be used for bare conductors. Can be used as ceiling suspended ducting.

2.1.2

PVC Electrical Conduit Pipe

Applications: y y y y y Open and concealed wiring in industries/residential and commercial buildings. House meter and water pump connections. Street light and traffic signal connections. Concealed wiring on buses, railway coaches, ships, aircrafts, etc. Being light can be used on false ceilings and sleevings.

2.2

Production Process

RAW MATERIALS y y y y y y PVC Resin Calcium Carbonate Wax Stearic Acid One Pack (Heat Stabilizer) Titanium Dioxide

Mixing
y Raw materials are mixed and powder blend is prepared in high speed mixers under closely controlled and monitored conditions.

Heating
y The mixture so prepared is transferred to the heating chamber where the mixture is heated up to 130-135 degree Celsius for 12 minutes.

Cooling
y The heated mixture is then cooled for about 5 minutes to 45 degree Celsius.

Mixer

Loader
y The mixture is then loaded on to the loader. This loads the mixture into the extruder.

Extrusion
y This is the process of converting a plastic raw material into homogeneous melt under controlled temperature and mixing and then forcing the material under pressure through a shaping die orifice and subsequently setting the required shape by means of a cooling and sizing system. The main components of extruder are: o Hopper  The machine is fed with dry blend PVC compound through hopper. o Screw barrel  Screw is used as a mixing and pumping element. The screw is rotated in a heated barrel in which feed opening is placed radically or tangentially at one

end of the barrel and die axially at other end. The rotating screw takes the material from a feeder through a heated barrel zone and compact it against the breaker plate and other restriction so that pressure builds up which forces the material through the restriction to the extrusion die where it is given form of shape.

Extruder DIE y The opening that allows plasticated material to form particular shape is achieved through DIE. Dies can take on a variety of shapes and have adjustable openings. So, different Dies are used for Casing-Capping and Electrical Conduit.

Vacuum Tank y This tank, filled with water, cools the pipe coming out of DIE. An electric motor is connected to the tank which empties the water from the tank and fills it again with fresh water. Different sizers are used for Casing-Capping and Electrical Conduit.

Printing

Pipe coming out of vacuum tank goes under the printing machine which prints the name of the company on the pipe.

Haul-off unit y This function of the haul-off unit is to drive the pipe away from unit without jerking at constant speeds.

Cutting unit y This unit cuts the pipe at desired length.

The whole production process is shown below:

2.3

Cost Sheet

Direct Material (Per Batch) Material PVC Resin Calcium Carbonate Wax Stearic Acid One Pack (Heat Stabilizer) Titanium Dioxide Quantity Used (in Kg) 25 2.5 0.15 0.3 0.3 0.25 Price (in Rs.)/kg 61 12 75 72 110 110

Quantity Produced Monthly Production in batches (if whole month is worked on single product) 780 1950

Product Casing & Caping Electrical Conduit

Batches Produced Per Day 30 75

No. of pieces in a batch 100 25

Monthly Weight Production in per piece pieces (in grams) 78000 300 48750 600

Salary & Wages Salary/month 15,000 7,000 10,500 12,000 42,000 6,000

1 2 3 4 5 6

Manager (1 NO) Accountant (1 NO) Watchman (3 NOS) Supervisor (1 NO) Labor (7 NO) Lab Assistant (Quality Inspector) (1 NO)

Plant & Machinery S.NO. 1 2 3 4 5 PLANT & MACHINERY Extrusion Machine 30 Kgs Mixer/Cooler Belling Machine PVC Pipe Testing Equipment Chilling Plant 6 Tonnes PRICE (RS) 2791600.00 324800.00 515700.00 250000.00 250000.00

6 Air compressor 2 HP 7 Water Pump - 2 Nos. Total = Rs. 4,192,100/-

30000.00 30000.00

Useful life = 5 yrs. (Depreciation is charged on straight line basis) Annual Depreciation = 4192100/5 = 838420 Power, Building & Water 1 2 3 4 5 6 7 8 Twin Screw Mixer/Cooler Chilling Plant Air Compressor Water Pump Scrap Grinder Belling Machine Lighting Total 59 HP 22 HP 15 HP 2 HP 15 HP 7.5 HP 9 HP 15 HP 135 HP

Consumption/month = 135 HP X 0.75 KW X 0.6 X Rs. 4.5 per unit X 208 (hours/month) = Rs. 56,862/Other Expenses (Per Month) Rent Printing (This involves printing company name and logo on products) Maintenance and general overheads 80,000 10,000 10,000