MINI TOOL ROOM PRODUCT CODE
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1 MINI TOOL ROOM PRODUCT CODE QUALITY AND STANDARDS Tool room facility/machine shop is a servicing industry to cater the tooling needs such as jigs, fixture, press tools, die sets, forming tools and moulds etc, to other industrial units as per their products. Every tool produced in the tool room requires 100% of inspection to adhere to the drawing, design and specifications of the user industry. Wherever necessary relevant IS: Specifications are to be followed in selecting the tool material and tolerances in the production of components of the tooling to be produces. PRODUCTION CAPACITY S.No. Item Qty. Rate Value (Rs.) 1. Sheet metal dies. 600 Nos. Rs. 20,000 1,20,00, Plastic injection moulding dies. 600 Nos. Rs. 12,000 72,00, Bakelite moulding dies. 600 Nos. Rs. 8,000 48,00, Job work L.S. L.S. 5,00, Sale of Scrape L.S. L.S. 1,00,000 Total 2,46,00,000 MONTH AND YEAR May, 2014 OF PREPARATION PREPARED BY Sh. Kamal Singh Deputy Director (Mechanical) -132-
2 Mini Tool Room 1. INTRODUCTION Tool room facility is a necessity for production of tooling in all disciplines of engineering industry whether mechanical, electrical, and electronic or plastics, etc with the rapid industrialization in our country. It has become imperative to produce various tools on job work basis e.g. i. Jigs & fixtures ii. Press tools iii. Forming tools iv. Moulding dies v. Forging dies 2. MARKET POTENTIAL The tool room serves as a backbone to a number of SSI Units situated in any area. The demand for a tool room depends directly on the growth of other units. Wherever there is concentration of more than 100 SSI Units, a tool room of this size will be viable. The decision to set up a tool room facility can be taken, keeping in view an action plan of the area and growth of existing units. 3. BASIS AND PRESUMPTIONS i. The project profile has been prepared on the basis of single shift of 8 hours a day. 25 days in a month and at 75% efficiency. ii. It is presumed that in the first year, the capacity utilization will be 70% and followed by 85% in the next year and 100% in the subsequent years. iii. The rates quoted in respect of salary and wages for skilled workers and others are above the minimum rates in other states. iv. Interest rate for fixed and working capital has been taken at 15% on an average, whether by bankers and or financial corporation. v. Margin money required is minimum 30% of the promoters. vi. The rental value of the work has been taken at the rate of Rs. 100 per square meter approx. vii. After the initial gestation period of one a half year. It will require seven years to pay back the loans -133-
3 Mechanical Division 4. IMPLEMENTATION SCHEDULE i. Preparation of project report: a) Inviting quotation 1 month b) Preparation ½ month ii. Provisional registration ½ month iii. Financial arrangements 1 month iv. Purchase of machinery 2 months v. installation of machinery 2 months vi. Installation of machinery 1 month vii. Electrification 1 month viii. Recruitment of manpower 1 month Total time Taken 9 months 5. TECHNICAL ASPECTS 1. In the tool room various machine tools including EDM facilities have been provided to carry out various machining operations e.g. hacksaw wing, drilling, turning, shaping, milling, surface grinding, and cylindrical grinding to produce different parts/components of a tool. However, heat treatment facilities will be availed from outside as the same is not economical for this size of tool room. 2. The quality of the tools produces will be 100% inspected conforming to drawing and specification of the user industries, wherever possible is Specifications for tolerances and standard parts will be used to meet the requirements. 3. Production capacity in term of machine hours is available as the products tooling cannot be specified except types as mentioned above in the introduction. 4. Approximate motive power has been given against each machine to the installed. The total horsepower comes to 50 H.P. 5. Rate of interest is 15% in the report. 6. Pollution control needs: The tool room workshop is equipped with machine tools only for doing job works like machining of ferrous metals to make different types of tooling and there will also be no discharge of effluents. There will be no chance of pollution and hence no pollution control equipment is required. 7. Energy conservation: The machine tools provided in the scheme are individually motorized. The motive power of each motor is according to the requirement of each for proper performance
4 Mini Tool Room 6. FINANCIAL ASPECT 6.1. Fixed Capital Building: Built up workshop shed, Covered area of 500 sq. mtrs. on Rent Machinery and Equipments a) Production Unit: 1. Surfacing, sliding and screw cutting Precision lathe machine cap mm. Bedx400 mm swing x 40 mm, Bore motorized with 3 HP Motor & Electrical complete with standard Accessories i.e. face place, steady and with one 250 mm 4 jaw chuck and One 200 mm true chuck (3 jaws) and tool Holders etc of graded quality stroke shaping machine with 3 HP Electric motor & electrical 3. Power hacksaw machine cutting capacity 7 dia with 1 HP motor and starter 4. Bench type ½ capacity drill Machine with ½ HP Motor and Starter 5. MTR Vertical Milling with 2 HP Motor & Accessories 6. Surface grinding machine 16 x8 with 2 HP Motor & Starter 7. Cylindrical grinding machine Cap, 150x500mm, with internal Attachment with 2 HP main motor ¼ HP internal grinding motor and ¾ HP spindle driving motor and starter 8. Double ended bench type 10 dia wheel Grinder motorized with 1 HP motor & starter 9. EDM Spark Erosion Machine Table size 20 cmx30cm with 7.5 HP Load 1 Nos. Rs. 10,00,000 1 No. Rs. 50,000 1 No. Rs. 20,000 1 No. Rs. 7,500 1 No. Rs. 6,00,000 2 No. Rs. 3,00,000 2 No. Rs. 3,00,000 1 No. Rs. 10,000 1 No. Rs. 5,00, CNC milling Machine with all accessories 1 No. Rs. 25,00,000 Total Rs. 52,87,500 Installation & Electrification 10 % Rs. 5,28,750 Total Rs. 58,16,
5 Mechanical Division b) Testing Equipments: 1. Rockwell Hardness Tester 1 No. Rs. 50, Profile Projector 1 No. Rs. 3,00,000 Installation & Electrification Charges L.S. Rs. 35,000 c) Measuring Instruments: Total Rs. 3,85, Surface plate 600x600 1 No. Rs. 50, Vernier height gauge 1 No. Rs. 12, Vernier Caliper 200 mm 1 No. Rs Vernier caliper 300 mm 1 No. Rs Micrometer 0.25 mm 1 No. Rs Micrometer 0.50 mm 1 No. Rs Inside Micrometer Set Rs. 25, pcs slip gauges set 1 Set Rs. 50, Combination set consisting of right angle bevel protector and center head and 12 scale 1 Set Rs. 20, Dial vernier caliper 1 No. Rs Misc. marking instruments and vices etc. L.S. Rs. 50,000 Total Rs. 2,28,000 Initial Purchase of non-recurring type cutting tools L.S. Rs. 3,00,000 Total cost of machinery & equipments Rs. 67,29,250 d) Office Equipments: 1. Computer with Design software 1 No. Rs. 1,50, Office table 2 Nos. Rs. 15, Chairs 5 Nos. Rs. 10, Almirah 2 Nos. Rs. 20, Working tables & stools 3 Nos. Rs. 10, Fixtures etc. L.S. Rs. 10,000 Total Rs. 2,15,000 Total cost of machinery, equipments and office equipments Rs. 69,44,250 Pre-operative expenses i.e. project cost and Non-refundable deposits etc. Rs. 1,50,000 Total Rs. 70,94,
6 Mini Tool Room 6.2. Working Capital (per month) Building Building (on rent) Built up workshop shed, Covered area of 500 sq. Rs. 100 per sq. mtr. (Rs.) 50, Personnel S. No. Designation Nos. Salary (Rs.) Total (Rs.) 1. Manager 01 20,000 20, Designer-Cum-Engineer 01 15,000 15, Accountant/Storekeeper , Supervisor 02 12,000 24, Clerk-Cum-Typist 01 7,500 7, Skilled Workers 03 10,000 30, Semi-Skilled Worker 04 7,500 30, Die fitters 02 7,500 15, Helpers 03 6,000 18, Peon/Chowkidar 01 6,000 6,000 Total 1,73,000 15% of salary 26,000 Total 1,99, Raw Material Die steels assorted size 5000 Rs. 200 per kg. Rs. 10,00,000 Mild sheets assorted size: 2500 Rs. 60 per kg. Rs. 1,50,000 Total Rs. 11,50, Utilities Power 1500 KWH Rs. 5/- Rs. 7,500 Water L.S. Rs. 300 Total Rs. 7,
7 Mechanical Division Other Contingent Expenses (per month) 1. Postage & Stationery Rs Telephone Rs Consumable store, Waste Cotton, Lubricants, Cutting tools, grinding Wheels, etc. Rs. 20, Repairs & Maintenance Rs. 20, Transport Charges Rs. 10, Advertisement & Publicity Rs. 10, Taxes Rs. 3, Sales Expenses Rs Misc. expenses including heat treatment charges to outside units Rs. 25, Total Recurring Expenditure (per month) 1. Rent Rs. 50, Personnel Rs. 1,99,000 Total Rs. 96, Raw Material Rs. 11,50, Utilities Rs. 7, Other contingent Expenses Rs. 96,000 Total Rs. 15,02,800 Total Working Capital for 3 months Rs. 45,08, Total Capital Investment Total Fixed Capital Rs. 70,94,250 Total Working Capital (for 3 months) Rs. 45,08,400 Total Rs. 1,16,02,650 Machinery Utilization This project profile is for tool room facility (medium size). It is expected that in 1st year 70%, 2nd year 85% and third year 100% machines will be utilized at 75% efficiency. No provision has been made in respect of heat treatment facilities, which are to be out sourced. This is necessary as the HT Equipment cannot be economically viable for this size of tool room
8 Mini Tool Room 7. FINANCIAL ANALYSIS 7.1. Cost of Production (per annum) 1. Total recurring cost Rs. 1,80,33, Depreciation of machinery & equipment including Testing 10% Rs. 5,28, Depreciation on measuring & marking instruments and cutting tools 20% Rs. 1,82, Depreciation on office 20% Rs. 43, Interest on total capital 15% Rs. 17,40,398 Total Rs. 2,05,28,348 Say Rs. 2,05,28, Turnover (per annum) S. No. Item. Qty. Rate Value (Rs.) 1. Sheet metal dies. 600 Nos. Rs. 20,000 1,20,00, Plastic injection moulding dies. 600 Nos. Rs. 12,000 72,00, Bakelite moulding dies. 600 Nos. Rs. 8,000 48,00, Job work L.S. L.S. 5,00, Sale of Scrape L.S. L.S. 1,00,000 Total 2,46,00, Net Profit (per annum) Turnover cost of production Rs. 2,46,00,000-2,05,28,000 Rs. 40,72, Net Profit Ratio Net profit per year Turnover per year 40,72,000 2,46,00, % -139-
9 Mechanical Division 7.5. Rate of Return Net profit per year Total Capital Investment 40,72,000 1,16,02, % 7.6. Break-even Point Fixed Cost (Per Annum) 1. Total depreciation Rs. 7,54, Rent Rs. 6,00, Interest Rs. 17,40, % of salaries Rs. 9,55, % of other expenses Rs. 4,60,800 Total Rs. 45,10,748 B.E.P Fixed Cost Fixed Cost + Net Profit 45,10,748 45,10, ,72, % -140-
10 Mini Tool Room Address of Suppliers of Machines: 1. M/s H.M.T. Bangalore 2. M/s Addison & Co. Madras. 3. M/s Cooper Engg. Works, Chuchawad, Poon 4. M/s Perfect Machine Tools (P) ltd. Bell Building Sir P.M. Road Bombay 5. M/s Leading Engg. Co., 31, New Rohtak road, New Delhi 6. M/s Daulat Industries Corpn. Pvt. Ltd, Civil Lines, Ludhiana. 7. M/s. R.K. Machine Toos, Indl. Area-A, Ludhiana. 8. M/s Sagar Engg. Works, Indl. Area-B, Ludhiana 9. M/s Ashoka Bros., Panchkuian Road, New Delhi. 10. M/s Internation Machine Tools Corporation, 5, Park Street, Behind State Bank of India, for, Bombay. Address of Suppliers of Raw Materials: 1. M/s Radhi & sons, 82, Nagdevi Cross Lane, Bombay. 2. M/s Durga Mill Store, Miller Gnaj, Ludhiana 3. M/s Victor Steels Pvt. Ltd., Sirkiwalan Bazar, Delhi. 4. M/s B.K. Steel, Ludhiana 5. M/s. B.K. Steel, Ludhiana 6. M/s. New India Steel Engg. Co., Bank of India Building, 185, Sheikh Memun Street, Bombay. 7. M/s Excel Steel Corporation, 162, Nagdevi Street, Bombay
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