PROJECT REPORT

ON

PEB STRUCTURAL FABRICATION

Office &Works:

TA B L E O F C O N T E N T S
 S.NO PARTICULARS

1. INTRODUCTION

2. CONSTITUTION AND SECTOR

3. BACKGROUND OF THE PROMOTERS

4. SCOPE OF THE PROJECT

5. ABOUT OUR PRODUCT

6. BREIF NOTE ON PRODUCTS AND PROCESS

7. AVAILABILITY OF RAW MATERIALS

8. MARKETING
`

9. LOCATION & ITS ADVANTAGES

10. UTILITIES & SERVICES

11. SWOT

12. ASSUMPTIONSAND FINANCIALS

1. PROJECT AT A GLANCE
01. Name of the Unit. : M/s.

02. Location of the Unit. ,

03. Constitution. : Proprietorship

04. Sector. : Small Scale

05. Line of Activity. : PEB Structural Fabrication & Roofings

06. Name of the Partners. :

07. Fund Required : Term Loan:

Working Capital

08. Promoters Contribution : 35.59%

09 Debt Equity Ratio : 1.81 :1

10 Power : 28 HP

11 Employment : 20 Persons

12.. Installed Capacity : 50 Tonnes per annum

Particulars Amount Particulars Amount

Land Promoters Capital
Plant & Machinery Term Loan
Electrical Fittings Working capital
Loan
Shed with Civil Works
& Compound Wall
Working Capital Margin
 1. INTRODUCTION

An industrial shed is typically a simple, single-story roofed structure in an open area or on

an allotment that is used for storage, or as a workshop. Industrial Sheds vary
considerably in the complexity of their construction and their size, from small open-sided
tin-roofed structures to large wood-framed sheds with shingled roofs, windows,
and electrical outlets. Sheds used in industry can be large structures. The main types of
industrial shed construction are metal sheathing over a metal frame, plastic sheathing and
frame, all-wood construction (the roof may be asphalt shingled or sheathed in tin), and
vinyl-sided sheds built over a metal frame.

As the world has evolved, industrial roofings and its required fabrication also has evolved
with latest technology and benefits. In todays world,Industrial Fabrication has got various
stages under which the task is performed. The Major of such tasks is fabricating the
structure and the material required for such job. Here comes the role of Structural
fabrication.

Structural fabrication is a job where all the required material for fabricating the industrial
house is arranged and made ready for fabrication job. The Industry of Structural
fabrication has evolved in many ways.

Analyzing the structural steel fabrication business is a bit like reading tree rings: They’re
all there for those who want to read them.

The older, “inner-ring” shops are still alive and well, serving various small construction
projects. There you’ll find plate and beams being fabricated the old-fashioned way, with
fitters reading blueprints and applying layout marks (copes, hole locations, etc.) with steel
tape, squares, and soapstone; using a mag drill or ironworker to drill or punch the holes;
and drawing the hole center locations by hand. People wield plasma and oxyfuel torches
to cut weld preps, then grind for a while (sometimes a long while) before the piece finally
moves on to welding.

Then you have the larger operations, the “outer rings,” which are evolving into something
extraordinarily different. Fabrication data from the 3-D model is downloaded directly to the
machines in the shop. After blast cleaning, automation moves the beams (with no
overhead crane) to some truly advanced machinery.

The beam also may move through a robotic plasma (or oxyfuel) cutting and coping
system, which imports such file types as DSTV and SolidWorks® files. “These now have
the capability to probe and scan the characteristics of each piece as well as generate
some bolt holes thermally, as allowed in some cases by the AISC [American Institute of
Steel Construction],” said Adrian Morrall, president of Voortman Corp., Monee, Ill. “The
technology is improving constantly.”
From there the beam flows directly to welding, grinding (though a lot less grinding than
there used to be), assembly, and out the door.

“We can track the material as it travels through the machinery and then ultimately after the
machinery, to the welding stations, at which point you can track by bar code,” Morrall
continued. “Everything is now linked together, and that linkage is just going to continue to
improve.”

A fabricator who left the business 30 years ago would be utterly amazed at not just the
machinery (including fast drilling with carbide tools and fast cutting with carbide saw
blades), but at the quick movement of material and information. Technicians with
touchscreen tablets walk the shop floor, monitor flow, and pull up current drawings with a
few taps.

In some operations, the equipment cuts the beam to length and drills. Parts also now have
bar codes that, when scanned, send information directly back to production control
software.

The older generation also probably thinks about their own careers—including years spent
with blueprints, a steel rule, square, and soapstone—and wonder about the future of the
youth entering the field: What will their career look like?

A Career of Change

Dave Sailing has seen it all at Zalk Josephs Fabricators, from soapstone to building
information modeling. After spending a year in welding school, Sailing joined the
 Stoughton, Wis., structural fabricator in the spring of 1976. He never left. Over the years he
worked his way up from a welder and fabricator to become a department lead, supervisor,
and then manager of operations. He’s now vice president of operations.

His 40 years in structural fabrication exemplifies the nature of technology adoption at many
organizations: not much change for years followed by lots of it, very quickly.

Between 1976 and 1990 the technology pretty much stayed the same. “We were kind of a
dinosaur industry,” he said. “There weren’t many process changes at all. We laid
everything out by tape measure and soapstone. Then we manually punched or drilled all
holes on a drill press. And all drawings were made on the board, with lead.”

As time progressed the first CNC machines arrived, and technicians manually programmed
jobs into the controllers. The information was all based off of the paper drawing. Then he
recalled getting his first floppy disks, hand-delivered from the office. But even as the
computer age finally gained a foothold in structural fabrication, fitters were still applying
layout marks by hand.

Now beam lines automatically scribe welding marks before the workpiece exits the work
envelope. This in turn has changed the fitter’s job, especially for workpieces like
conventional beams for simple, straightforward buildings. “All the manual figuring has gone
away,” Sailing said.

A Shifting of Skill

Sources agreed that the level of skill has changed on the shop floor; it really hasn’t
gone down, just shifted to different positions. Although this depends entirely on the
company and its structure, a fitter isn’t necessarily the most experienced individual on
the floor anymore; those individuals now may be operating a machine and, especially,
welding.

A few factors are driving this. First is the nature of commercial structural work. Many
buildings are getting more complicated. “Connections have gotten more complex as
the industry has progressed,” said Lyle Menke, vice president of marketing
at Peddinghaus Corp., Bradley, Ill.
Second, structural fabrications now have more bolted connections. “The reason they’re
bolted on,” Sailing said, “is that the high-speed drills that we have can put the holes in
extremely accurate locations.” He added that bolting is simpler, faster, and doesn’t
input heat into the part. Those connections that can’t be bolted are still welded, and
many of those welds are quite challenging, especially considering the complex
structures being produced these days.

Welding in U.S. structural fab shops remains largely manual, but the day may come
when much welding will be automated by robots. In Europe, for instance, some beam
lines are entirely automated, from initial cutting to the final weldment. Programming
occurs offline automatically, which is a key component, considering the variety of parts
that flow through a structural fab operation.

“People are now putting the welding information into the 3-D model itself,” Morrall said.
“As long as the welding information is at the model, you can retrieve it and use it at the
robot.” He added that if the welding information is missing, the engineer can choose
welds in a particular location from a library. All this occurs offline, before the job is
released to the floor.

On the floor, the robots can probe the beam location (important, considering the
sometimes loose dimensional tolerances between one beam and the next), tack it,
move it to another station, and perform the weld. Then a mechanized material handler
carries the welded piece away to storage or the next operation.
 The beam line at Zalk Josephs has no need for an overhead crane. Automated material
handling systems carry beams from blasting through cutting, drilling, and robotic coping.
Photo courtesy of Ficep Corp.

For various reasons this technology has yet to take off at many shops stateside, but it’s
certainly a harbinger. Still, sources agree that no matter what lies ahead, all structural fab
shops will need manual, code-certified welding talent, especially for difficult work.

The Career Path Yesterday

Decades ago a person started out (like today) as a helper, aiding the fitter or grinding
edges for weld preparation. From that starting point, people could take the welding
path or a path that focused on material handling, such as crane operation, or upstream
processes.

If he chose welding, he benefited from a shop that required a lot of it. For months or
years a welder could practice laying relatively simple joints, then move up to more
complicated work as his skills progressed. He could then be promoted to a fitter and
layout person. “Traditionally, the person who performed the layout had the highest skill
 level and was the most substantially compensated,” said Tom Boyer, president
of Ficep Corp., Forest Hill, Md.

If an employee wanted to continue to climb up through the ranks, he may have decided
to move on to become a batch-checker or quality control person who checked the
fitting and layout marks to verify the fit prior to welding. From there he could be
promoted to a lead person who assisted the department supervisor. Then came
supervision and management, be it in production or quality.

Like today, the structural fabrication industry of 30 years ago had some NC technology
in use, particularly in cutting and drilling, but it certainly wasn’t common. “Even back
then, we were already making holes in the right hole locations [automatically],” Boyer
said. “But that was only part of the process. Once a piece is cut to length and all the
holes are put into it, there’s a substantial amount of fitting and welding to do. After
cutting and drilling, the steel tape would come back out.”

The Career Path Today

Steel tape and paper drawings remain, at least to some extent, but the source of the
information has changed. Structural fabrication is now digitized, which in turn has
changed the very nature of the job. If structural fabrication is about anything these
days, it’s about precision and speed.

“The number of tons per man-hour you can put out is much greater than it was years
ago,” said Robert Mohan, production manager at Haas Metal Engineering (HME Inc.),
Topeka, Kan. “We’re now doing a ¾-inch hole in 1-in.-thick material in 6 seconds. And
the cut quality and fit-up are much tighter, so your weld time is greatly reduced.”

“Today machine operators need to be extremely qualified,” said Russell Barngrover,

executive vice president and plant manager at SteelFab’s Charlotte, N.C., operation.
“The main reason behind this is, ‘Would you give just anybody your Ferrari to drive?’”
 Machine operators today are at the helm of extremely productive and advanced machinery.
Photo courtesy of HME Inc.
If machine operators really did just “operate” a machine, they wouldn’t need much skill. They’d
just call up the program, make sure the material was staged and ready to go, and commence
cutting and drilling—all pretty straightforward.

But that really just scratches the surface of what operators today really do. They monitor the
machine and (depending on the company and operation) perform varying levels of
maintenance. Most important, they also manage the information—the numerous jobs coming
to the floor—and make sure the right program is going to the right machine at the right time. If
an incorrect or out-of-date program were to somehow make it to the machine, and if the
operator simply pressed a button without thinking, that operator would produce a lot of
expensive scrap in a hurry.

“What makes machines crash goes back to bad file management,” Sailing said, adding that
the quality of the detailing work, which can come from anywhere in the world, can vary widely
today. “We have a position called a file manager. He ensures the files will actually work on the
equipment. The better job we do in the office, the better job the machine operator can do.”

Barngrover added that checking programs before they’re released to the beam line is more
important than ever, and his team does find problems from time to time. It’s rare, but
considering how much material can be wasted in a short amount of time, spending a few
minutes checking programs is a small price to pay.

One reason getting a program right is so critical is not only about the speed of new
equipment, but the fact that material literally doesn’t stop moving. And the later an error is
caught, the more expensive that error becomes.

The reason that beams don’t stop moving has to do with effective use of automation—not just
of the value-added cutting and coping, but of the non-value-adding time between processes,
like material handling.

“If you analyze the biggest cost in our structural fabrication plants, you’ll find it’s material
handling,” Sailing said. “Think about it; how many times do you pick up and set down a
beam?”

Now automation can eliminate the need for an overhead crane for much of the operation.
Once the material enters blast cleaning (which turns on and off by itself), the beam enters the
drill/saw line or the drill/cope line, comes back to the center, moves the beams to a different
part of the plant, and deposits them near fabrication. Beams are literally not handled by a
human until just before welding.

“We’ve taken the material handling out of 60 to 80 percent of the travel of that beam,” Sailing
said. “And none of this means that we need fewer people. In fact, this equipment is so fast
that we need more people to handle the higher volume of beams going through the shop. It’s
all about flow control. We know that we make money from beams out the door, not piles on
the floor.”

A Turning Point

If fabricators from 30 years ago time-traveled to today’s shop, what would shock them? “They
would be just amazed at the speed,” Barngrover said. “We used to make cardboard templates
by hand, lay it on each piece, clamp the cardboard template to the part, and center-punch the
hole. Just to get those templates done took a week or two. Now when we have data from the
models downloaded right into the machine, I can start running the job within half an hour after
receiving the drawings.”
 A robotic plasma system at HME Inc. cuts a cope in a structural beam. Photo courtesy of HME Inc.

From weeks down to a half hour: That illustrates how dramatically structural fabrication has
changed. The industry seems to be at a turning point. Numerous baby boomers lived through
an incredible transition, from chalk and soapstone to complete digitization. Many didn’t make
it. A few sources recalled the many draftsmen who quit when CAD started to take over. It
quite simply wasn’t the industry they signed up for.

Today’s youth grew up with computers; they’re more comfortable with a virtual 3-D model
than a blueprint. And because the industry has so many small shops with older technology
(those “inner rings” of the tree), they can even get a taste of the old-school way of doing
things.

Problem is, they can only get a taste before they really need to start producing, and that’s
likely a big contributor to the skilled-labor crisis. A fabricator no longer needs as many
welders, but the welders they do employ need to be very good. The same could be said of
machine operators and other key shop floor personnel.

Youth entering structural fabrication will have a different career, one that in fact may be
somewhat smooth-going.

Young people grew up with electronics, software, and the Internet. They can’t remember the
days before smartphones.

“On the other hand, veteran employees didn’t grow up with computers, and then they had all
these electronics being introduced,” Barngrover said. “It was actually much harder for people
to acclimate [to new technology] years ago than it is now.”
“Because [young people] grew up with technology all around them, they seem to be more
accepting of modern machine tool technology and new methods,” Menke said. “At the same
time, fabricators understand that if they don’t move toward where technology is going, they
won’t be able to compete. Times have changed. To get buildings finished on time, they know
they need to react quickly to changes, and the technology helps them react faster.”

When millennials (those born in the late 1980s to the early 2000s) enter a structural
fabrication operation, they accept automation as the norm. This seems to be the one bright
spot in an otherwise challenging situation, where new generation meets old, where new
technology has made the pace of work faster than ever.

At worst, young rookies working second shift are met with what they view to be “just a job,”
not necessarily a career. The automation means that what jobs there are seem somewhat
simple, at least on the surface. But things move fast, and the rookie makes expensive errors
and doesn’t seem to learn from them. And the older industry veterans, those who learned on
the job incrementally after years of experience, don’t share knowledge easily. These rookies
usually don’t last long.

At best, the rookie joins the organization and develops a passion for the work, but for different
reasons. Previous generations were drawn by the hands-on work. The latest generation is
drawn to the technology, software, and process management—skills that, considering the
state of automation in structural fabrication, are now more important than ever.

.
 2. CONSTITUTIONS AND SECTOR

Constitution: A unit by name and style, is a Proprietorship firm, the main object of the unit is
to engage in Structural Fabrication and Roofing. The Promoter of the unit is

Sector: The unit comes under Micro sector and has obtained industry registration from
D.I.C..

LICENCES AND APPROVALS:

The Company has obtained the following licenses and

approvals.

1. GST Registration

2. ISO 9001:2008

3. MSME Registration

4. Factory License

5. No Objection from Pollution Dept.

3. BACKGROUNG OF THE PROMOTERS

. W/o Sri , aged about years is residing at . She hails from business community. She
is a graduate in B.Sc. He has got decent experience in this line of activity. She owns ancestral
property worth of. She is the promoter of the unit.
 4. SCOPE OF THE PROJECT

The project envisages expansion of operations for PEB Structural Fabrication and fabrication
of Industrial Roofings. The total funds required for setting up the unit is estimated at 147.50
lakhs. The installed Capacity of the plant is tons per annum.

Particulars Amount Particulars Amount

Land (After 30% Promoters Capital
subsidy from APIIC)
Plant & Machinery Term Loan
Electrical Fittings Working capital
Loan
Shed with Civil Works
& Compound Wall
Working Capital Margin

DETAILS OF INDIVIDUAL HEADS OF PROJECT COST

Land : The promoter is proposing to start the Unit land which will be purchased after availing
30% subsidy from The location is sufficient for proposed and future requirement unit and is
very ideal for the unit, for which an amount of is required..

Buildings & Shed Construction : The Promoter would set up industrial shed which would
be equipped with all latest technology and with RCC floor of an area of 10,000 Sft and a
compound wall for the unit, for which the promoter requires an amount of 39.26 lacs.

Plant and Machinery: The Unit, in order to cater variety of requirements of orders, would
need to have all the gadgets and machinery. Here is the list of all machinery required by the
unit:
 No. of Amoun
Plant & Machinery items t
EOT Crane 1
CMC Cutting Machine 1
Built up Machine 1
Punching Machine 1
 Total  

DETAILS OF INDIVIDUAL HEADS OF MEANS OF FINANCE

Capital :
The share capital of the promoter is Rs.. The promoter contribution works out 35.59% of
the project cost.

Term Loan :
The Unit desires to avail term loan of Rs., to meet part cost of the project of Rs. 147.50
lakhs which works out 61.01% of the project. The term loan will be paid in 66 monthly
installations with moratorium of six months.

Working Capital Requirement:

The Unit in order to be competitive, requires to maintain huge stock of Raw Materials,
for which it requires a working capital loan of upto .
 5. ABOUT OUR PRODUCT (PEB)

In structural engineering, a pre-engineered building (PEB) is designed by a PEB supplier or

PEB manufacturer, to be fabricated using best suited inventory of raw materials available from
all sources and manufacturing methods that can efficiently satisfy a wide range of structural
and aesthetic design requirements. Within some geographic industry sectors these buildings
are also called Pre-Engineered Metal Buildings (PEMB) or, as is becoming increasingly
common due to the reduced amount of pre-engineering involved in custom computer-aided
designs, simply Engineered Metal Buildings (EMB).

The project architect, sometimes called the Architect of Record, is typically responsible for
aspects such as aesthetic, dimensional, occupant comfort and fire safety. When a pre-
engineered building is selected for a project, the architect accepts conditions inherent in the
manufacturer's product offerings for aspects such as materials, colours, structural form,
dimensional modularity, etc. Despite the existence of the manufacturer's standard assembly
details, the architect remains responsible to ensure that the manufacturer's product and
assembly is consistent with the building code requirements (e.g. continuity of air/vapour
retarders, insulation, rain screen; size and location of exits; fire rated assemblies) and
occupant/owner expectations.

Many jurisdictions recognize the distinction between the project engineer, sometimes called
the Engineer of Record, and the manufacturer's employee or subcontract engineer,
sometimes called a specialty engineer. The principal differences between these two entities
on a project are the limits of commercial obligation, professional responsibility and liability.

The structural Engineer of Record is responsible to specify the design parameters for the
project (e.g. materials, loads, design standards, service limits) and to ensure that the element
and assembly designs by others are consistent in the global context of the finished building.

The specialty engineer is responsible to design only those elements which the manufacturer
is commercially obligated to supply (e.g. by contract) and to communicate the assembly
procedures, design assumptions and responses, to the extent that the design relies on or
affects work by others, to the Engineer of Record – usually described in the manufacturer's
erection drawings and assembly manuals. The manufacturer produces an engineered product
but does not typically provide engineering services to the project.
In the context described, the Architect and Engineer of Record are the designers of the
building and bear ultimate responsibility for the performance of the completed work. A buyer
should be aware of the project professional distinctions when developing the project plan.

These prefabricated structures are widely used in the residential as well as industrial sector
for its unmatched characteristics.
 6. BRIEF NOTE ON PRODUCTS AND PROCESS

The Unit as discussed will focus on Pre-Engineered Buildings, which also called Structural
Fabrication. We give here under the brief process of the activity we under take:

The above process is self explanatory. For better understanding, the same is explained in
pictorial format in sequence of the nature of activities:
 7. AVAILABILITY OF RAW MATERIAL.

The detailed raw materials required and their application is depicted in the following picture:

Out of the above picture of materials involved, the major of them is purchased from local
market,.

The Major material involved in the process is Steel, which can be procured from RINL,
Distributors and other major dealers.
 8. MARKETING

Market Potential

We will be actively engrossed in manufacturing and suppling a world class assortment of

PEB Shed and Fabrication Works. We are happy and proud to pronounce that we will the
1st PEB Structural Fabrication and one its kind in the City of Destiny

Since we are the 1st and will be one, there are tremendous opportunities to cater the
fabrication industry in

As of today, the scenario is that , fabricators in are getting PEB from Cities like, etc. Since
we will be the 1st, there is scope that these fabricators shall procure their requirement from
us.

In addition to above, arrangement we would also employ marketing team for further
development and growth of the business.
 9. LOCATION AND ITS ADVANTAGES

Land: The location of the Unit is at The location of the unit has considerable influence
on the techno-economical facility of the project. There are various factors contributing
to the functioning of a plant and following are the primary factors taken into
consideration.

Reasons for the Selection of the site:

1. Adequate of Raw Materials.
2. Adequate of labour at economically rate.
3. Adequate supply of water through out the year.
4. The site is well connected with road facility.
5. Banking facilities and Government supports
6. Adequate Transport facilities for economical transportation of finished product and
spare parts.
7. Nearness to the Market.
 10. UTILITES AND SERVICES

Power: The unit has required power under LT connection. The unit requires power
predominantly for Fabrication works. The Unit is located at, and has the required
power without any problem.

Employment: The unit employs a team of more than 15 persons locally which consists
of Site Engineers, Site Supervisors and many other categories of staff.

Water: The unit does not require water for its primary activities. However there is
nominal requirement of water for cleaning, sanitation and drinking purposes. Bore well
serves the above purposes.

Pollution: No harmful effluents age generated in the manufacturing and fabrication

process.

Transport: The unit is located at No problems are anticipated for transportation of the
Raw materials and the finished goods.
 11. SWOT ANALYSIS

STRENGTH:

The unit is proposed at The unit is eligible for Govt. concessions. The promoters are
having vast experience in the same line of activity.

WEAKNESS:

The firm has competition from the existing units from other cities as the proposed unit
is having latest technology and by the government encouragements to start new
industry the units can competent with the old industries.

OPPORTUNITY:

The firm’s opportunity to diversify into production of PEB and Structural Fabrication etc.
the market demand for the future expansion is good for the proposed unit.

12. Assumptions underlying for preparation of cost of production and profitability

statement
 Year 2019 2020 2021 2022 2023
Sales
Closing Stock
Total Income
 
Opening Stock
Purchases
Power
Salaries
Admin Expenses
Interest to Bank
Depreciation
Total Expenses
           
Profit 1.59 2.75 3.39 4.80 5.86

Assumptions:
 Raw Material per Ton shall purchased at Rs. /- per Ton.
 Selling Price per Ton shall be around Rs. /- per Ton.
 Difference of Rs. /- consists of two Components:
o Rs. /- towards other material required to convert Raw material to Finished
o Rs. /- towards Power, Salaries and Profit Margin.
 The Suppliers shall not give any credit and so is the case with us, no supply to be
made on credit.