Professional Documents
Culture Documents
By
YASHWANTH K R
Reg. No: P03NK21M0147
Under the guidanceof
Dr. SAGAR G
Faculty of Management
OF MANAGEMENT
STUDIES
Jnana Bharathi Campus
BangaloreUniversity
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2022–2023
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Dr. CYNTHIA MENEZES
BANGALORE UNIVERSITY
MBA, PhD Canara Bank school of Management Studies
Dean & Director (Post Graduate Dept. of Management)
CERTIFICATE OF ORIGINALITY
This is to certify that the Project titled “A BUSINESS PLAN TO ESTABLISH ALPHA
DATE: DATE:
Bangalore University. JB Campus, Old Pareeksha Bhavan, Jnanabharathi, Bangalore • 560056. India.
Office: 080•22961973. Director: 08022961981 Email: cbsmsjbcbub@gmail.com
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DECLARATION BY THE STUDENT
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GUIDE
This is to certify that the project report entitled “A BUSINESS PLAN TO ESTABLISH
ALPHA ENTRPRISES” which is been Submitted in the partial fulfillment of the
requirement for Degree of MASTER OF BUSINESS ADMINISTRATION Canara Bank School
Date:
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I am thankful to DR. CYNTHIA MENEZES PRABHU, DEAN & DIRECTOR OF CANARA
BANK SCHOOL OF MANAGEMENT STUDIES, Bangalore for giving me this opportunity to
do this project report and for her guidance.
I am thankful and indebted to my internal Guide Dr. SAGAR G, Faculty of management Studies
Canara Bank School of Management Studies, for his scholarly guidance, and encouragement
extended to me and his valuable time & suggestions to complete this dissertation.
I express my sincere gratitude to my beloved Parents for their co-operation at every stage of my
work in completing this project report.
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LIST OF
Page.
Sl. No PARTICULARS
No
1. INDUSTRY OVERVIEW 1
3. MARKET ANALYSIS 15
4. OPERATIONAL STRUCTURE 20
5. BUSINESS MODEL 24
v
LIST OF
1 SWOT Analysis 17
2 Business Provider 24
4 Risk Involved 25
5 Required Investment 27
8 Payback Period 29
v
LIST OF
5 7
Shape of the Lathe CNC
8 9
Five Axis of CNC
10 Aerospace components 12
12 16
Market Analysis
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A BUSINESS PLAN TO ESTABLISH ALPHA
CHAPTER – 1
INDUSTRY OVERVIEW
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INTRODUCTION:
Automation and robotics (an area in which mechanical engineers are crucial) continue to be
essential in helping manufacturing industries keep up with consumer demand while maximizing
profit. While new technologies have no doubt changed the engineering landscape, the future looks
bright for the mechanical engineering industry. New fields of study and subject areas will favour
engineering graduates. Practicing professionals, however, will need to keep up to date with current
and future advancements to avoid being left behind.
Mechanical engineers make a difference. That's because mechanical engineering careers center on
creating technologies to meet human needs. Virtually every product or service in modern life has
probably been touched in some way by a mechanical engineer to help humankind.
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This includes solving today's problems and creating future solutions in health care, energy,
transportation, world hunger, space exploration, climate change, and more. Being ingrained in
many challenges and innovations across many fields means a mechanical engineering education is
versatile. To meet this broad demand, mechanical engineers may design a component, a machine, a
system, or a process. This ranges from the macro to the micro, from the largest systems like cars
and satellites to the smallest components like sensors and switches. Anything that needs to be
manufactured—indeed, anything with moving parts—needs the expertise of a mechanical
engineer.
The tremendous progress in electronic equipment so that automatic control became possible
in various productive areas, and this was called automation, while the appearance of machines was
called mechanization. Shortly after World War II, with the increase of more complex products, the
CNC machine was invented to effectively reduce the urgent need for skilled workers to operate
manufacturing systems. Since the 1950s several Scientific and technical developments were one of
the most prominent inventions of the computer in the form of the spine for the development of
several industrial technologies of digital control and reboot and the manufacture of computer
support cam. In this introduction, we try to present the historical developments that have
accompanied the development of digital control technology and identify the differences between
traditional number machines and digital control number machines, as well as to demonstrate the
technical and economic feasibility of using 2 digital control machines. It is useful to determine
from the beginning that the focus will be entirely on the application of digital computer control
technology on number machines. The considering that this is the historical area in which it
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appeared, and the most important area for production technology, although there are other
applications for this technology. Before starting to deal with this technology and establish the
necessary drivers, it is necessary to identify the framework in which the digital computer control
technology works, and when to use it economically and technically, this confirms the importance of
this introduction.
Digital control machines are machining whose tasks are controlled so that the functions of
operating them are arranged through letters, symbols and numbers all formed to be called the driver
has been named CNC because it contains the computer and machine and the switching device
between the two. The meaning of digital control machines is the connection of the computer to the
machine and there is between them a translator device to know them some or as we say interface
and of course the machine does not know the language of the computer and that is why we put this
device.
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CNC routers
CNC routers cut wood, plastic, and also sheet metal, and have three-dimensional axis’s in
the manufacture for bulky products and Complex products. And using for cutting different
materials along a path.
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Lathes
Lath is one of the types of CNC machines that are used in the filling and manufacture of metals by
rotating the artifacts to be formed, giving them the desired shape. Practically all kinds of structures
could be machined with this machine tool, depending on their needs in different industries.
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Milling Machine
This type of CNC machine uses rotary cutters to cut different materials from manufactured
materials.
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1.2 MARKET TRENDS
5-AXIS MACHINE
5-axis machines were developed and used in production for more than 50 years. Because of
limitations of computing hardware, the compensation functions were not available in early use.
FANUC developed tool length compensation for Ingersoll 5-axis machines in the late 80s.
Many advanced 5-axis functions have been developed in the last 20 years. These functions
greatly enhanced the application of 5-axis machines.
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CHAPTER – 2
PRODUCT & SERVICES
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CNC technology helps the aerospace industry by being compatible with a wide range of materials
and allowing for seamless manufacturing of these metals. CNC Rapid Prototyping. R&D is an
essential component of every company, and CNC machining is at the forefront of this process.
CNC machines are extensively used in industries where metal removal is required. The machines
remove excess metal from raw materials to create complex parts. A good example is the aerospace
industry where shafts and other complex parts are carved from raw materials.
2.1.1 Typical CNC Machined Parts and Components for Aerospace Industry.
Satellite Systems.
Rapid Diagnostic Test Security.
Semiconductor Support.
Internal Computer Assembly.
Electronic Industry Support.
Shaft Assemblies.
Spindle Housing Hubs etc.
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The oil and gas industry always demands products or components that can encounter
unexpected working environments. offers a comprehensive range of precision machining
services for the oil and gas industry. parts are not only precision designed, but also created with
materials that enable them to withstand abusive environments. Precision machining capabilities
and vast industry expertise have helped providing improved applications every time
2.2.1 Typical CNC Machined Parts and Components for Oil & Gas Industry
Fittings.
Housings.
Suspension Arms
Rollers.
Brackets.
Shafts.
Valves etc.
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Hydraulic Components
Stuffing Box
Spacers
Sealing Systems
Valving Systems
Vacuum Barrier
Actuating Systems
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CHAPTER – 3
MARKET ANALYSIS
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3.1 MARKET ANALYSIS:
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3.2 SWOT ANALYSIS:
Opportunities Threats
Strengths Strength Opportunities Strength Threats (ST)
(SO) Strategies Strategies
Strengths are the firm's capabilities and resources that it can use to design, develop, and sustain
competitive advantage in the marketplace
First mover advantage in the increasingly crowded marketplace. The new products are rapidly
increasing Alpha Enterprises market share in the Capital Goods industry.
High margins compare to Misc. Capital Goods industry's competitors - Even though Alpha
Enterprises is facing downward pressure on profitability, compare to competitors it is still racking
in higher profit margins.
Track record of innovation - Even though most players in the Capital Goods strive to innovate,
Alpha Enterprises has a successful record at consumer-driven innovation.
Talent management at Alpha Enterprises and skill development of the employees - Human
resources are integral to the success of Alpha Enterprises in the Capital Goods industry.
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3.2.2 Weaknesses of Alpha Enterprises
Weaknesses of Alpha Enterprises can either be the absence of strengths or resources of capabilities
that are required but at present, the organization doesn't have. Managers must be certain if the
weakness is present because of a lack of strategic planning or because of strategic choice.
local monopolies that companies such as Alpha Enterprises can exploit are fast disappearing. The
customer network that Alpha Enterprises has promoted is proving less and less effective.
Declining per unit revenue for Alpha Enterprises - competitiveness in the Capital Goods
industry is putting downward pressure on profitability. A starting guide to managing this situation
for the company name is – objectively assessing the present value propositions of the various
products.
Low investments into Alpha Enterprises customer-oriented services - This can lead to
competitors gaining an advantage soon. Alpha Enterprises needs to increase investment in research
and development, especially in customer service-oriented applications.
The business model of Alpha Enterprises can be easily imitated by competitors in Capital Goods
industry. To overcome these challenges company name needs to build a platform model that can
integrate suppliers, vendors, and end users.
Opportunities are potential areas where the firm can identify potential for - growth, profits, and
market share.
Customer preferences are fast changing - Driven by rising disposable incomes, easy access to
information, and fast adoption of technological products, customers today are more willing to
experiment/try new products in the market.
The trend of customers migrating to higher-end products - It represents a great opportunity for
Alpha Enterprises, as the firm has strong brand recognition in the premium segment, and customers
have experience with excellent customer services provided by Alpha Enterprises brands in the
lower segment. It can be a win-win for the company and provides an opportunity to increase
profitability.
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Opportunities in Online Space - Increasing adoption of online services by customers will also
enable Alpha Enterprises to provide new offerings to the customers in the Capital Goods industry.
Rapid Expansion of Economy as the US economy is improving faster than any other developed
economy, it will provide Alpha Enterprises an opportunity to expand into the US market. Alpha
Enterprises already have the know-how to operate in the competitive US market.
Lowering the cost of new product launches through third-party retail partners and dedicated
social networks. Alpha Enterprises can use the emerging trend to start small before scaling up after
the initial success of a new product.
Increasing government regulations are making it difficult for unorganized players to operate in
the Capital Goods industry. This can provide Alpha Enterprises with an opportunity to increase its
customer base.
Threats are factors that can be potential dangers to the firm's business models because of changes in
macroeconomic factors and changing consumer perceptions. Threats can be managed but not
controlled.
Distrust of institutions and the increasing threat of legal actions for Alpha Enterprises - As the
WTO regulations and laws are difficult to enforce in various markets. Legal procedures have
become expensive and long-drawn processes. It can lead to less investment into emerging markets
by Alpha Enterprises thus resulting in slower growth.
Competitors catching up with the product development - Even though at present Alpha
Enterprises is still the leader in product innovation in the Capital Goods segment. It is facing stiff
challenges from international and local competitors.
Competitive pressures - As the new product launch cycles are reducing in the Capital Goods
industry. It has put additional competitive pressures on players such as Alpha Enterprises. Given
the large customer base, Alpha Enterprises can't respond quickly to the needs of the niche markets
that disruptors are focusing on.
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CHAPTER –4
OPERATIONAL
STRUCTURE
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CHAPTER – 5
BUSINESS MODEL
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5.1 TYPE OF BUSINESS
B to B Sales Process
Product understanding is a must before embarking on the sales process. When a person is
well-versed in a certain product, he has a better chance of receiving more orders.
Prospecting entails looking for possible clients who are in high demand. It is preferable to
construct a customer database to store their information for future reference.
Attempt to contact the possible buyer through a variety of methods. In general, a phone call
is preferable to an email because many promotional emails end up in the rubbish folder.
After calling a consumer, you should ask inquiries to ascertain his wants.
After analyzing the customer’s demands, you can prepare a persuasive presentation.
The final stage is to obtain a customer order.
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5.2 BUSINESS PROVIDER
HAL (assumed)
To reduce the development time and development cost, HAL has to re-design an unconventional supply
chain. This supply chain is envisioned to keep manufacturing and assembly costs low while spreading
the financial risks of development to HAL's suppliers. The new supply chain proposed is based on a
tiered structure that would allow HAL to foster partnerships with approximately least 40-50 tier-1
strategic partners. These strategic partners serve as “integrators” who assemble different parts and
subsystems produced by tier2 suppliers.
The table 3 shows the key differences between the existing and the proposed unconventional supply
chain. For instance, under the proposed supply chain structure; these tier-1 strategic partners are
responsible for delivering complete sections/modules of the aircraft to HAL, which would allow
HAL to assemble these complete sections/modules within five to seven days. The strategies for the
proposed supply chain setup as highlighted in the table are detailed below:
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The biggest disadvantage of using CNC is the rate at which parts are produced. An open-loop
system provides feedback to the control using an encoder.
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CHAPTER – 6
FINANCIAL PLAN & PLAN
OUTCOMES
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6.1 REQUIRED INVESTMENT
H R COSTING 4,00,000
TOOLS 2,00,000
MISECELLANOUS 2,00,000
TOTAL 50,00,000
DESCRIPTION COST
TOTAL 50,00,000
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DESCRIPTION COST
SALARY 40,000
TOOLS 6000
TOTAL 1,04,000
Table 7: Outflow per Month
6.5 PROFIT
Profit/year = 96,000 X 10
=9,60,000 rupees/year
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PRESENT OF PRESENT
YEARS CASH INFLOW RUPEE 1 AT VALUE OF
10% CASH IN FLOW
TOTAL 5897280
Table 8: Payback Period
Pay back period is 7.82 years.
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Probability Index
PI = Present value of cash Inflow / Present value of cash Outflow
= 58,97,280 / 50,00,000
PI = 1.18
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CHAPTER – 7
CONCLUSION &
REFERENCE
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7.1 CONCLUSION
CNC machining is a form of manufacturing that uses computer-controlled machine tools to
create parts and products. The main advantages of CNC machining over traditional methods
are greater accuracy, more precise control, and higher efficiency.
CNC machining offers a reliable solution for rapidly manufacturing the parts. The current
approach, using an indexable tool, managed to eliminate multiple set-ups of the workpiece.
The visibility programme is an effective method to identify orientations for finishing
operations.
CNC machining offers a reliable solution for rapidly manufacturing the parts. The current
approach, using an indexable tool, managed to eliminate multiple set-ups of the workpiece.
The visibility programme is an effective method to identify orientations for finishing
operations.
In the study of computer numerical control machines the production improvement can be
done more effectively and efficiently.
The CNC programming is a way to operate CNC machine. CNC Lathe machine usage gives
many benefits of increased productivity and accuracy and time management but the only
drawback is its cost. This could not be employed for all small jobs and is preferable to use
in large amount of production and complicated shapes
The pay back period is 7.81 years so the cash inflow from 7.81 year will be the profit to the
company.
The company can also be expanded in terms of machines and workers which leads to the
greater marginal profit.
Since the productivity index is 1.18 which is greater than 1. So the company can be
established and will be in the profit.
The company should be advertised and marketed in such a way that it should obtaing
continuous feed as assumed.
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7.2 REFERENCE
1. Wong, H.K. and Ellis, P.D. (2007) ‘Is market orientation affected by the product life
cycle?’, Journal of World Business, Vol. 42, No. 2, pp.145–156.
2. Wood, V.R., Bhuian, S. and Kiecker, P. (2000) ‘Market orientation and organizational
performance in not-for-profit hospitals’, Journal of Business Research, Vol. 48, No. 3,
pp.213–226.
3. Wooldridge, B.R. and Minsky, B.D. (2002) ‘The role of climate and socialization in
developing interfunctional coordination’, The Learning Organization, Vol. 9, No. 1, pp.29–
38.
4. Wu, F. and Lee, Y.K. (2005) ‘Determinants of e-communication adoption: the internal push
versus external pull factors’, Marketing Theory, Vol. 5, No. 1, pp.7–31.
5. CNC Programming, Michael Mattson, Delmar Cengage Learning, 2010.
6. Managing Computer Numerical Control Operations, Mike Lynch, Society of Manufacturing
Engineers, 1995.
7. Hace A, Jezernik K. The open CNC controller for a cutting machine, IEEE International
Conference on Industrial Technology, 2003; 2(1231-1236):10-12.
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