COMPUTER HARDWARE MAINTENANCE & NETWORKING SERVICE
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1 COMPUTER HARDWARE MAINTENANCE & NETWORKING SERVICE SERVICE CAPACITY (Value) : Rs. 18,00,000/- MONTH AND YEAR : July, 2014 OF PREPARATION PREPARED BY : Dr. Amarnath Assistant Director (Metallurgy) 1. INTRODUCTION Computers are widely used these days in office automation, business/trade, industries, hospitals, hotels and other transport type of services. Computer hardware consists of Processors, Motherboard, Memory, Peripheral Controllers and interfaces, Pen Drives, and Hard Disks. The peripherals consist of Keyboard, Monitor, Printer, Modem, Mouse etc and connected to main CPU through cables and interfaces. Switch Mode Power Supply (SMPS) are used to power the computer for different voltage: +5V, -5V, +12V and -12V. The SMPS is housed in the cabinet. The monitor and Printer have their own power supply units. 2. MARKET POTENTIAL The market for computer is expanding day by day to due to rapid computerization of offices for accounts, inventory, sales, correspondence and communications in all walks of life. The demand for computer continues to grow. Even though there are big competition in computer assembling the servicing of computers and providing quality networking services are in very poor shape even in metros. The small manufacturers have to compensate this tough competition with their better quality services. Government as well as private offices need dedicated team of expert to service as well network their whole functioning on service contract basis in most reliable fashion. This project serves this gray area of activity. 3. BASIS AND PRESUMPTIONS This project is made on the basis of the following presumptions: i. It is assumed that the unit will be viable at 75% efficiency on single shift basis considering 5 working days or as per demand of area per week. ii. The rate of interest in the scheme is taken at 11.5 % for both fixed and working capital. Due to liberalization and competition among banks, lower rate of interest is possible in future. -35-
2 iii. iv. The prices of machinery and equipments are approximate which are ruling locally at the time of preparation of the project. When a tailor-cut project is prepared the necessary changes are to be made at the local level. The cost of staff and labor is approximate which is ruling locally at the time of preparation of the profile. When a tailor-cut project is prepared the necessary changes are to be made. 4. IMPLEMENTATION SCHEDULE The project can be implemented in a period of 3 to 6 months by performing the various activities in a systematic manner and simultaneous application of various common activities as mentioned below: Preparation of project reports Essential registration if required Selection of site Arrangement of finance/loans Arrangement of rented accommodation Machinery & equipment procurement Recruitment of staff & labour Installation of machinery Trial Operation Commercial Operation 5. TECHNICAL ASPECTS 1 st month 1 st month 1 st to 2 nd month 3 rd to 4 th month 1 st to 2 nd month 3 rd to 5 th month 5 th month 5 th month 5 th to 6 th month 6 th month 5.1. Process Outline The maintenance of computer involves various skills like assembly of electronics and electrochemical sub-assemblies, peripherals and integrating them into a computer unit. In present market scenario it will be difficult to face competition from big names. Mostly the project model involves earning through servicing; however few computers will be assembled too to supply to the trusted customers. As per design the motherboard, and display device will procured as per demand. The other sub-assemblies like hard disk, CD drive, cabinets, SMPS etc will be readily available. For assembly of PC the motherboard along with other subassemblies are mounted in cabinet and interconnected before testing for various performances with help of dedicated software Service Capacity Quantity: 24 new PC + revenue through service charges Estimated revenue earned per year: Rs.18,00,000/ Motive Power Total requirement is about 5 kva. -36-
3 5.4. Pollution Control Good housekeeping will be maintained to avoid pollution in and around area Energy Conservation Measures to be adopted for conserving energy are adoption of energy conserving technologies, timely switching on-off of the lights, use of compacts fluorescence lamps (CFL) wherever possible and best use of electrical appliances etc to assure optimum energy consumption in the unit. 6. FINANCIAL ASPECT 6.1. Fixed Capital Land & Building: Well-equipped office space in easily assessable area 300 ft 2 on rent Machinery and Equipments Sl. No. Description of Machine 1. Computer Testing System (HDD, Motherboard, Processor, Printer, Keyboard, Mouse etc) 2. Tools for making internet connections and other essential tools for assembly and service activities. Quantity Amount (Rs.) 1 25,000 LS 15, Software LS 20, Office Furniture LS 40, Electrification and other charges for installation 15 % of plant & machine charges 15,000 Total 1,15,000 Preoperative expenses like legal, establishment, traveling, Rs. 15,000 Startup consultancy, telephone, electricity connections, etc Working Capital (per month) Personnel Total Fixed Capital Rs. 1,30,000/- S.No. Designation Nos. Salary (Rs.) Total (Rs.) 1. Self as CEO/Manager 1 12,000 12, Skilled Worker 3 9,000 27, Semi-skilled Worker 1 8,000 8,000 Total 47,000 Add perquisites 15% 7,050 Total 54,
4 Raw Material S.N. Description of item Quantity Value (Rs.) 1. Items like processor, motherboard, monitor, keyboard, Hard Disk, DVD writer, SMPS, RAM, Speakers and UPS etc. 2. Accessories for networking and other spare hardware frequently used. For assembly of 2 computers as per customer s specification 34,000 LS 16,000 Total 50, Utilities 1. Power: 140 Rs. 6.50/unit Rs Water: LS Rs. 140 Total Rs. 1, Other Contingent Expenses S. No. Description Value (Rs.) 1 Rent 9,000 2 Stationery, Postage, etc Transportation 1,500 4 Telephone, Fax, etc. 2,000 5 Advertisement/publicity Consumable stores 1,000 7 Miscellaneous Expenses 500 Total 15, Total Recurring Expenditure (per month) Rs. 1,20,100/ Total Capital Investment Fixed Capital Rs. 1,30,000 Working Capital (for 3 months) Rs. 3,60,300 Total Rs. 4,90,300/- 7. FINANCIAL ANALYSIS 7.1. Cost of Operation (per annum) S.No. Description Amount (Rs.) 1. Total Recurring Cost per year 14,41, Depreciation on Machinery & Equipment including 23,000 20% 3. Interest on Total 11.5% 56,385 Total 15,20,
5 7.2. Turnover (per annum) Computer Hardware Maintenance & Networking Service Revenue earned by way of service charges and sale of 24 Rs. 18,00,000/- assembled computer with profit margin of Rs. 5000/ per computer 7.3. Net Profit (per annum) Turnover Cost of Operation Rs. 2,79,415/ Net Profit Ratio Net profit per year Turnover per year 15.5 % 7.5. Rate of Return Net profit per year Total Capital Investment 57.0 % 7.6. Break-even Point Fixed Cost (Per Annum) (Rs.) Rent 1,08,000 Total Depreciation 23,000 Total Interest 56,385 40% of other Contingent expenses (Excluding rent) 28,800 Total 2,16,185 Note: Salary and wages are commensurate with work performed by the expert. Hence this portion is excluded in present profile in calculation of fixed cost. B.E.P Fixed Cost Fixed Cost + Net Profit 43.6 % Addresses of Machinery and Equipment Suppliers: Computers and other consumable stores will be procured from the local suppliers. -39-
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