Project work

PROJECT REPORT
CAPITAL COST

X Machine

Y Machine

@
Price of the machine (Basic)
Excise
CST
Freight / Insurance
Total
ANCILLARY EQUIPMENT
Mould
Mixer
Cooling Tower
Chiller
Grinder
Dryer
Chain pulley block
Oil
Others
Total
TOTAL MACHINERY COST
LAND & BUILDING
Land area
Rate
Land Cost
Shed area
Construction cost
Building cost
TOTAL CAPITAL COST
Debt
Equity

%
%
%

%
%

16.48
4
1

75
25

1800000.00
296640.00
83865.6
21805.06
2202310.66

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Project work

PRODUCTION
PRODUCT
Weight of the product
Runner weight
Total Shot weight
No. of pieces per Stroke
Production hours per year
Uptime
Machine running time per year
Cycle time
Production per hour
Production per hour
No. Of Strokes per year
No. of pieces per Year
Rejection
Rejection in weight
No. of Good pieces per year
WORKING CAPITAL
Raw Material cost
Stock
15 days Raw Material
Receivables
Total Working Capital
Debt
Equity
MEANS OF FINANCE
Long term Loan
Own Funds
Total Project cost
ANNUAL COSTS
Raw Material Reqd per annum

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Qty
Kg

Days

%
%

60
40

Page 2

Project work

Cost of total raw material

MANUFACTURING COST
Connected load of IMM
Connected load of Ancillary
Consumption for IMM
Power Consumed for IMM
Consumption for Ancillary
Total Power consumed/year
Power cost /unit
Power cost per year
LABOUR
Salary for operators(x3)
Salary for Supervisors(x2)
Salary for others
Total labour cost
Interest per annum
Depreciation per annum
Administrative expense
Marketing expense
Maintenance expense
Transport/Packing/Insurance
Others
Total Manufacturing cost
Total annual Cost
PRODUCT COST
Total Cost
Cost /unit
Cost / Kg
PROFIT ANALYSIS
Total Annual Cost
Sales Income

Kwh/Kg
0.6 Load fa
Rs

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%
%

20
25

Page 3

Project work

Sales cost/Kg
Good material produced inKg
Sales
Sale of Wastage
Rejection
Runner
Total Wastage
Selling Cost
Income from Wastage
Total Income
Gross Profit
Net Cash Accural
Gross Profit as % Sale
% Return on Investment

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Rs

ASSUMPTIONS TO THE ANALYSIS

Cycle time depends on the efficieny of the mold and cooling
Approx. price calculated for the ancillary equipment
Power consumption and power factor calculations approximate
Indicative costs for land & building
Power tarrif differs for LT & HT
Raw material price at prevailing rate. Regrinding of runners not considered
IMM price is at prevailing rate and levies
This report is indicative.

Page 4

Cells in yellow are variable

Capital investment
Basic Price of the machine
Excise Duty @ 16%
Sales Tax @ 4% against form C
Insurance @ 0.01%
Freight Expenses @ 0.5%
Total landed Cost - Machine
Cost of the mold
Total investment cost
Interest on the investment
Depreciation (straightline method)
Total investment
Variable Cost
CYCLE TIME:
Cycle time of the product
Number of cavities
Number of days / month
Number of hours / day
Available production hours / month
Machine utilization %
Actual hours of production
Number of cycles / month
Number of pieces produced
Rejection @ 2%
Accepted production
MATERIAL:
Weight of the product
Runner weight
Total shot weight
Total weight produced / month
Total accepted production
Cost of the material / kg
Expenses on raw material
POWER:
Power Consumption / kg processed
Total units consumed
Power cost / unit
Power Cost incurred
Total Variable Cost
Fixed Cost
Investment cost / month
Wages (2oprs,2sup,1engr)
Land cost or rent
Administration Charges
Total Fixed Cost

Units

Machine X
1,650,000.00
264,000.00
76,560.00
1,990.56
9,952.80
2,002,503.36
50,000.00
2,052,503.36
369,450.60
410,500.67
2,832,454.64

Machine Y
1,600,000.00
256,000.00
74,240.00
1,930.24
9,651.20
1,941,821.44
50,000.00
1,991,821.44
358,527.86
398,364.29
2,748,713.59

sec
nos
days
hrs
hrs
85
hrs
nos
nos
nos
nos

11
2
26
22
572
0.85
486.2
159120
318240
6365
311875

11
2
26
22
572
0.85
486.2
159120
318240
6365
311875

gms
gms
gms
Kgs
Kgs
Rs
Rs

12
2
14
4455.36
4366.25
70.00
311,875.20

12
2
14
4455.36
4366.25
70.00
311,875.20

Kwh
Kwh
Rs
Rs
Rs

0.8
3564.29
4
14,257.15
326,132.35

0.9
4009.82
4
16,039.30
327,914.50

Rs
Rs
Rs
Rs
Rs

236,037.89
15,000.00
10,000.00
3,600.00
264,637.89

229,059.47
15,000.00
10,000.00
3,600.00
257,659.47

Total Cost / month

Cost / product

Rs
Rs

590,770.24
1.89

585,573.96
1.88

COST BREAK-UP
Material Cost
Power Cost

Rs
Rs

1.00
0.05

1.00
0.05

16%
4%

18%
20%

Fixed Cost
RETURN
Selling price of the product
Sales Value
Profit / month before tax
Profit after tax - PAT (@ 30%)
Cash Flow (PAT + Depreciation)
Pay Back Period (ROI)

Rs
Rs
Rs
Rs
Rs
Rs
Rs
Years

0.85
1.89
2
623,750.00
32,979.76
23,085.83
57,294.22
4.12

0.83
1.88
2
623,750.00
38,176.04
26,723.23
59,920.25
3.82

05/01/2015

Product Costing between Sigma Competitor

PRICE OF MACHINE
Basic
Excise Duty %
Sales Tax %
Freight,Insurance & Other %
LANDED COST ( Incl. Modvat)
OTHER COST
Interest
%
Depreciation
%
No. of days available in a year
No. of hrs per day
PRODUCTS MFG.
Time Allocation for Product %
VARIABLE FACTORS
Cycle time in seconds
No. of Pieces per stroke
Uptime %
Weight per piece in gms
Consistency %
Rejection %
Runner Loss %
Power Consumption Kwu/Kg
Raw Material Cost per kg
Re-grinding Cost
per kg
Rate per Kw per unit
Available Capacity in minutes/ yr
No. of strokes per year
No. of pieces produced per year
No. of good pieces produced/yr
Weight of pieces produced in kgs
Weight of good pieces produced in kgs
Input raw material weight in kgs
Weight of raw material for regrinding
in Kgs.
Kilo watts consumed during the year
COST PER UNIT
Material ( including re-grinding cost )
Electricity
Interest
Depreciation
TOTAL COST
No. of good units produced
Cost per unit

Cost per product

Cost per unit
Material ( including re-grinding cost )
Electricity
Interest

2100000
0.1648
0.04
0.02

2100000.00
346080.00
97843.20
50878.46
2248721.66

0.2
0.2
300
20
Product 1
1

449744.33
449744.33

13:29:04

1600000 1600000.00
0.1648 263680.00
0.04
74547.20
0.02
38764.54
1713311.74
0.2
0.2
300
20
Product 1
1

20
1
0.95
220
0.94
0.02
0.08
0.6
55
0
3.5

22
1
0.95
220
0.94
0.02
0.08
0.8
55
0
3.5

342000
1026000
1026000
1005480
331808
325172
360661
35489

342000
932727
932727
914072
301644
295611
327874
32263

216397

262299

17884460
757389.5
449744
449744
19541337.5
325172
60.10

16258605
918046.5
342662
342662
17861975.5
295611
60.42

13.22

13.29

55.00
2.33
1.38

55.00
3.11
1.16

Page 7

342662.35
342662.35

05/01/2015
Depreciation

Product Costing between Sigma Competitor

1.38

Page 8

13:29:04
1.16

COST ANALYSIS

PRICE OF MACHINE
Basic
Excise Duty @ 16%
Sales Tax @ 4% C.S.T.
Freight,Insurance & Other @ 0.1% of basic price
LANDED COST ( Incl. Modvat)
OTHER COST(includes mold, building etc)
Interest @ 20% p.a.
Depreciation @ 25% p.a.(Straigt Line Method)
PRODUCTION TIME
Production days available in a year
Production hours per day
Yearly Production hours
VARIABLE FACTORS
Cycle time in seconds
No. of Pieces per stroke
Uptime %
Weight per piece (gms)
Consistency %
Rejection %
Runner Loss %
Power Consumption KWh/Kg [ Units per kg. material processed]
Raw Material Cost - Rs. per kg
Electicity Cost - Rs. per Unit
Actual yearly production Hours considering Total Uptime
Actual total strokes per year
Total pieces produced per year
Good pieces produced/yr cosidering rejection
Total Weight of pieces produced (Tons) / Input raw material
Weight of good pieces produced (Tons)
Weight of rejection material (Tons)
Weight of material for regrinding - sprue,runner,etc.(Tons)
Total material for regrinding-rejection plus runner etc.(Tons)
Total electricity consumed during the year (Units)
PRODUCTION COST
Material Cost
Electricity Cost
Interest
Depreciation
TOTAL COST
NO. OF GOOD UNITS PRODUCED
COST PER UNIT
BREAK UP OF COST PER UNIT
Material
Electricity
Interest
Depreciation
Cost per unit
SALES
Total sales (Assuming sale price per unit Rs.5.75)
Profit Before Tax Rs.

Page 9

A
1,679,000.00
268,640.00
77,905.60
16,790.00
2,042,335.60
500,000.00
508,467.12
635583.90

B
1,875,000.00
300,000.00
87,000.00
18,750.00
2,280,750.00
500,000.00
556,150.00
695,187.50

325
22
7150

325
22
7150

17.3
1
85
69
1
2
1
0.58
60
4
6077.5
1264682
1264682
1239388
87.26
85.52
1.74
0.86
2.6
50611.00

17.3
1
85
68
1
1
1
0.44
60
4
6077.5
1264682
1264682
1252035
86
85.14
0.86
0.85
1.71
37840.00

5235600.00
202444.00
508467.00
635584.00
6582095.00
1239388.00
5.31

5160000.00
151360.00
556150.00
695188.00
6562698.00
1252035.00
5.24

4.22
0.16
0.41
0.51
5.30

4.12
0.12
0.44
0.56
5.24

7107890.18
525795.18

7199201.25
636503.25

COST ANALYSIS

Profit After Tax ( Considering 30% max. Tax )

Cash Flow : PAT + Depriciation
PAY BACK PERIOD ( MONTHS )

368056.63
445552.28
1003640.63
1140740.28
30.40
29.25
All Amounts Are in Rs.

Page 10

Pcs per hour

Wt
Wt per hour
Kgs per shift
Rs per kg

40.00
1.35
54.00
432.00
12.46

4500.00

3000.00

3000.00

4500.00

50.00
0.56
28.00
224.00
20.09

40.00
0.39
15.60
124.80
24.04

70.00
0.26
18.20
145.60
20.60

65.00
0.39
25.35
202.80
22.19