Production of Furniture

8/14/2019 Production of Furniture

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FLEXIBLE MODULAR PARTITION &

MODULAR DESK TABLE SYSTEM

A Business Plansubmitted in partial fulfillment of

the requirements for theDegree of Bachelor of Technology

Under XXX

By

XXX

XXX

Under the guidance

XXX

ABSTRACT

The Indian plastic industry has registered an exponential growth and at a higher rate

than the plastics industry worldwide. Its development has been striking given the fact

that the plastic industry itself has remarkable progress world wide. Todays life

without plastic is unthinkable. The industry has outpaced all other industries in India.

This is hardly surprising given that the use of plastics has infiltrated all sectors of the

economy. The plastic industry in India offers a world of opportunities.


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This Business plan aims at setting of a manufacturing industry for producing flexible

plastic furniture system. The main products will be flexible modular partition and

modular desk table system available in a wide range of styles and colours. This range

is tough and durable ideally suited for seating arrangement in offices, homes, gardens,

restaurants, audio labs, conference halls, pool side libraries or just anywhere. It is

environment friendly and will substitute the use of wood and rot iron.

ACKNOWLEDGEMENT

We express our deep sense of gratitude to, XXX Project Advisor, for his valuable

guidance and constant unfailing encouragement for completing this project.

We are also grateful to our friends for tirelessly and patiently pursuing us to finish this

report without whose help completion of the project report was the next thing to

impossible.

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Last, but not the least, We give our sincere thanks to XXX, for giving us the

opportunity and creating a nice work environment for us to complete our Business

Plan report within the stipulated period of time.

Finally, I would like to thank Mr. XXX for providing us proper environment for the

completion of the report.

TABLE OF CONTENTS

ABSTRACT ................................................................................................................... 1

ACKNOWLEDGEMENT ............................................................................................. 2

TABLE OF CONTENTS ............................................................................................... 3

1. GENERAL INFORMATION .................................................................................... 6

1.1 ENTREPRENUER PROFILE ............................................................................6

1.2 TYPE OF THE PRODUCT / SERVICES ......................................................... 6

4. MARKET POTENTIAL ........................................................................................... 9

4.1. Present Demand and Supply of the Product ........................................................9

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4.2 Competition .......................................................................................................... 9

4.3 Target Clients ....................................................................................................... 9

4.4 Marketing Strategy ............................................................................................... 9

5. MANUFACTURING PROCESS ............................................................................ 10

5.1 Technical Know-how Availability .....................................................................10

5.2 Step by Step Description of the Manufacturing Process: ...................................10

6. PRODUCTION SCHEDULE .................................................................................. 13

6.1 Number of Working Days per Annum ...............................................................13

6.2 Number of Working Shifts .................................................................................13

6.3 Installed Capacity(annual) ..................................................................................13

6.4 Utilized capacity (%) ..........................................................................................13

7. DETAILS OF THE PROPOSED PROJECT ...........................................................14

7.1 Land and Building ..............................................................................................14

7.2 Machineries / Equipments ..................................................................................14

7.3 Miscellaneous Fixed Assets ...............................................................................147.4 Preliminary and Pre Operative Expenses ...........................................................14

7.5 Sales Revenue .................................................................................................... 15

Year ......................................................................................................................15

Items .....................................................................................................................15

Rate per unit (Rs) ............................................................................................15

Quantity sold per year ..........................................................................................15

Sales Realization (Rs) ..........................................................................................15

1st ........................................................................................................................15

Partitions ...............................................................................................................15

Tables ..................................................................................................................15

2599 ......................................................................................................................154553 ......................................................................................................................15

3240 ......................................................................................................................15

2160 ......................................................................................................................15

1,82,55,240 ...........................................................................................................15

2nd ........................................................................................................................15

Partitions ...............................................................................................................15

Tables ...................................................................................................................15

2612 ......................................................................................................................15

4613 ......................................................................................................................15

3510 ......................................................................................................................15

2340 ......................................................................................................................151,99,62,540 ...........................................................................................................15

3rd .........................................................................................................................15

Partitions ...............................................................................................................15

Tables ...................................................................................................................15

2710 ......................................................................................................................15

4758 ......................................................................................................................15

4050 ......................................................................................................................15

2700 ......................................................................................................................15

2,38,22,100 ...........................................................................................................15

4th ........................................................................................................................15

Partitions ...............................................................................................................15

Tables ...................................................................................................................15

4


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2735 ......................................................................................................................15

4772 ......................................................................................................................15

4320 ......................................................................................................................15

2880 ......................................................................................................................15

2,55,58,560 ...........................................................................................................15

5th .........................................................................................................................15Partitions ...............................................................................................................15

Tables ...................................................................................................................15

2752 ......................................................................................................................15

4789 ......................................................................................................................15

4860 ......................................................................................................................15

3240 ......................................................................................................................15

2,88,91,080 ...........................................................................................................15

total .......................................................................................................................15

11,64,89,520 .........................................................................................................15

7.6 Raw materials .....................................................................................................15

7.7 Utilities ...............................................................................................................167.8 Salaries/Wages ..................................................................................................17

7.9 Repairs and Maintenance-Monthly ....................................................................17

7.10 Selling and Distribution Expenses-Monthly ....................................................17

7.11 Administrative Expenses-Monthly: ..................................................................17

7.12 Interest-Annual .................................................................................................18

Loan amount (Rs) .....................................................................................................18

Interest (Rs) ..............................................................................................................18

Installment ................................................................................................................18

Balance (Rs) .............................................................................................................18

75,00,000 ..................................................................................................................18

5,94,300 ....................................................................................................................18

3,19,399.45 pm .........................................................................................................18

60,00,000 ..................................................................................................................18

7.13 Depreciation .....................................................................................................18

8. WORKING CAPITAL (One Month) ......................................................................18

9. TOTAL COST OF THE PROJECT .........................................................................20

.............................................................................................................................20

10. MEANS OF FINANCE ......................................................................................... 21

11. PROFITABILTY PROJECTIONS ...................................................................... 22

12. BREAK EVEN POINT ........................................................................................23

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ENTREPRENEURSHIP PROJECT

1. GENERAL INFORMATION

Name of the Entreprenuers:

XXX

XXX

Proposed Project:

This business plan deals with production of flexible modular

partitionand modular desk table system

Major Product / Services:

Our company will manufacture flexible furniture system using

Polyurethane Sandwich panels. It will substitute wooden and wrought iron furniture.

Proposed Locations:

Office : Plot A/24, Saileshree Vihar, Bhubaneswar

Plant site : Plot 4532/56, Patia, Bhubaneswar

Type of Organization:

Manufacturing group.

1.1 ENTREPRENUER PROFILE

1.2 TYPE OF THE PRODUCT / SERVICES

1. Type of the Project :

Flexible Modular Partition & Modular Desk Table System


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2. Product / Services Description :

Type : Intermould furniture available in a wide range of styles

and colours made up of Polyurethane Sandwich panels.

Quality : Tough , durable and environment friendly.

Properties :

-inert to bacterial growth.

-moisture repellent.

-light in weight.

-can bear reasonable weight upon it.

-can be easily assembled and dismantled.

-takes smaller space with larger volume.

-good looking.

Uses :

(a) Flexible Modular Partition :-

It is used for making small separate room in the office.

It is used in the Desk for making partition.

(b) Modular Desk Table System :-

This is used specially in the office for individual Tablewith lock system Desk in which essential papers can be kept for long storage with

safe.

3. Major Consumers :

Offices ,homes ,restaurants, educational institutes


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4. MARKET POTENTIAL

4.1. Present Demand and Supply of the Product

Nowadays flexible office furniture is becoming more popular and its demand is

increasing day by day. This is a product new to market so the public is not aware of

the plus points of these products over the normal plastic accessories. In near future it

is going to have high demand as these have higher durability, better sustainability to

high temperature as they are made up of advanced plastic called hi-tech plastic and

take smaller space with larger volume. These products can be used everywhereincluding houses, offices, restaurants, conference halls etc. So, this product will take a

bright future.

4.2 Competition

Godrej, Neelkamal and Supreme Furnitures

4.3 Target Clients

Initially we aim to capture the Bhubaneswar market and then expand our sale all over

Orissa.

4.4 Marketing Strategy

Most of the marketing will be done through television and paper media.

Articles about this revolutionary product, can be published in newspapers , describing

its benefits and advantages.

Our USP will be the features of the product: flexibility, environment friendly and

cheaper than its substitutes.


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5. MANUFACTURING PROCESS

5.1 Technical Know-how Availability

A knowledge of Material Science and Manufacturing Science is required to know the

best possible way to manufacture the product. Besides this the use of latest design

process as Computer Aided Design and Computer Aided Manufacturing are

being used for the development of designs.

5.2 Step by Step Description of the Manufacturing Process:

Polyurethane Sandwich panels are composite rigid panels, comprising in-situ filled

polyurethane foam core, sandwiched between two metal skins, in a single step

manufacturing process. Panels are in modular section that is connected easily to each

other by a special integral taking system to enable quick and simple assembly and

dismantling.

(1) Flexible Modular Partition :-

1. Take proper size of P.S. Sheet.

2. Cut it according to size require mentioned

3.Join it by plastic welding process or screwed it for double or triple flexible Sheet.

4.Partition is ready


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Suppose we have made a partition of two sides of area one side 6' x 4' and another

side 4' x 4'. Available sheet of length 2' x 2' and 2 mm thick. On the above case for

area 6' x 4', we have to take six number of 2' x 2' area sheets. Weld the six sheets

horizontally and in parallel to make a compact partition otherwise weld only 2 sheets

together to make one partition and then joined 3 portion by scerwing method for

folding each partition.Now on the same way make another partition of size (4'x4').

Join the two portion by screwing for removing or easy handling.

(2) Modular Desk Table System

1.Take P.S. sheet of proper size and thickness

2.Weld 4 legs in 4 corners of the sheet

3. Previously prepared molded cabinet of appropriate size is welded with the table one

side open.

4.Previously prepared desk with lock system is attached with the table or assembled

into the cabinet.

5.Table is ready.


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For example, take a sheet of size 75 cm. x 45 cm. of 5 mm thickness made of P.S.

Now weld or screw 4 legs of height 60 cm. Now previously prepared molded cabinet

of size 30 cm x 45 cm x 45 cm is welded with the table one side open. In the cabinet

there is a three partition each of 15 cm, a head attached with 1 cm, width angle on 4

sides. Now previously prepared desk with lock system put in side the Cabinet attached

with the table or assembled the desk inside the cabinet of the table.


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6. PRODUCTION SCHEDULE

6.1 Number of Working Days per Annum

The Firm will remain open for all weekdays i.e. Monday to Saturday except on

public and National holidays.

6.2 Number of Working Shifts

There will be three working shift i.e from 6am to 2pm, 2pm to 10pm and 10pm to

6am.

6.3 Installed Capacity(annual)

Flexible Modular Partition: 5400 nos.

Flexible Modular Desk Table: 3600 nos.

6.4 Utilized capacity (%)

I - Year - 60%

II - Year - 65%

III - Year - 75%

IV- Year - 80%

V Year - 90%


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7. DETAILS OF THE PROPOSED PROJECT

7.1 Land and Building

Sr. No. Particular Area Required Total Value Remarks

1.

2.

Land

Building

10,000sqft

2,000sqft

Rs. 6,79,200

Rs. 2,13,425

Land on a 70

year lease

Total: Rs. 8,92,625

7.2 Machineries / Equipments

Sr. No. Description Nos. Required Rate(Rs.) Total Value(Rs.)

1. Plastic welding

machine

6 30,048 1,80,288

2. Drilling

machine(with drill

beads)

8 2,012 16,896

3. Injection molding

machine

5 15,428 77,140

4. Miscellaneous - - 20,000

Total: 2,94,324

7.3 Miscellaneous Fixed Assets

Sr. No. Description Nos. Required Rate(Rs.) Total Value(Rs.)

1. Furniture Tables(4),Chairs(4),

Stools(10),sofa set

- 31,160

2. Computers 2 15,000 30,000

3. Split AC 2 25,000 50,000

4. Design expenses - - 52,000

Total: 1,99,160

7.4 Preliminary and Pre Operative Expenses

Sr. No. Particulars Amount (Rs.) Remarks


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1.

2.

3.

4.

Interest during

implementation

Establishment

Expenses

Start-Up Expenses

Misc Expenses

5,94,300

12,34,350

1,20,810

45,625

14% compound

interest pm on

75lacs 5 year loan.

T

otal 19,95,085

7.5 Sales Revenue

Year Items Rate per unit

(Rs)

Quantity

sold

per

year

Sales

Realiz

ation

(Rs)1st Partitions

Tables

2599

4553

3240

2160 1,82,55,240

2nd Partitions

Tables

2612

4613

3510

2340 1,99,62,540

3rd Partitions

Tables

2710

4758

4050

2700 2,38,22,100

4th Partitions

Tables

2735

4772

4320

2880 2,55,58,560

5th Partitions

Tables

2752

4789

4860

3240 2,88,91,080

total 11,64,89,520

7.6 Raw materials

Sr.

No

Items Quantity Rate(Rs) Total value(Rs)


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1.

2.

3.

4.

5.

6.

P.S. sheets for

partition(6*4)

P.S. sheets for

tables(3*2)

Cabinet

Desk

Screws & Cobza

Stand, Angle of

1 ,2.5 height

made by resin

plastic

200

150

180

160

20 kg

150

15/sqft

21/sqft

104/piece

54/piece

21/kg

36/piece

72,000

18,900

18,720

8,640

420

5,400

total 1,24,080

7.7 Utilities

Sr. No. Particulars Expenditure(Rs) Remarks

1.

2.

3.

Power/Electricity

Water

Coal/Oil/Stream

40,380

1,696

-

Total 42,076


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7.8 Salaries/Wages

Sr.

No.

Particulars No. Wages/Salaries per

Month(Rs.)

Annual

Expenses(Rs)

1.

2.

3.

4.

Skilled

Semi Skilled

Unskilled

Office Staff

10

30

15

10

1,20,000

1,50,000

45,000

42,000

14,40,000

18,00,000

5,40,000

5,04,000

Total 3,57,000 42,84,000

7.9 Repairs and Maintenance-Monthly

Sr.

No.

Particulars Amount(Rs)

1. Machineries maintenance 1,000

2. Building maintenance 550

3. Vehicle maintenance 2,400

total 3,950

7.10 Selling and Distribution Expenses-Monthly

Sr.

No

Particulars Amount(Rs) Remarks

1.

2.

3.

4.

5.

Publicity Expenses

Traveling

Freight

Commission

Misc

Total

8,000

2500

12,000

7,900

4,000

Hoardings,pamphlets,ads

in magazines etc.

34,400

7.11 Administrative Expenses-Monthly:

Sr.

No.

Particulars Amount(Rs.)


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1.

2.

3.

4.

Stationary and printing

Post/Telephone/Fax

Guest entertainment expenses

Misc.

7,080

6,000

1,040

1,250

Total 15,370

7.12 Interest-Annual

Loan amount (Rs) Interest (Rs) Installment Balance (Rs)

75,00,000 5,94,300 3,19,399.45 pm 60,00,000

7.13 Depreciation

Sr.

No.

Type of Asset Cost of Asset Depreciation

(WDV)

Amount

1. Building 2,13,425 10% 21,342.50

2. Plant and

machinery

2,74,324 33% 90,526.92

3. Moulds andEquipments

1,99,160 50% 99,580

Total: 2,11,449.42

8. WORKING CAPITAL (One Month)

Sr. No. ITEM Rs.

1.

2.

3.

4.5.

Raw-Material

Salary/Labor

Administrative expenses

Repairs and maintenance expensesSelling and Distribution expenses

1,24,080

3,57,000

17,140

3,95034,400


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9. TOTAL COST OF THE PROJECT

Sr. No. Particulars Total Value(Rs.)1.

2.

3.

4.

Fixed Capital

Working Capital

Preliminary & Pre-operative Expenses

Cost escalation and Contingencies

11,58,265

64,38,840

19,95,085

1,21,562

Total 97,13,752


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10. MEANS OF FINANCE

Sr. No. Particulars Amount

(Rs.)

Remarks

1.

2.

Own Investment

Term Loan

25,00,000

75,00,000 Five year loan @

14% pm

Total: 1,00,00,000


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11. PROFITABILTY PROJECTIONS

Sr. No. Particulars Amount (Rs.)1.

2.

i)

ii)

iii)

iv)

v)

vi)

vii)

viii)

ix)

A

B

C

Sale Realization

Cost of Manufacturing/

Servicing

Raw Material

Utilities

Salaries/Wages

Repairs & Maintenance

Selling & Distribution

Expenses

Administrative Expenses

Preliminary and pre-operative expenses

Interest

Depreciation

Total

Annual Working capital

Annual Interest on loan

Annual Depreciation

1,82,55,240

14,88,960

5,04,912

42,84,000

47,400

4,12,800

1,84,440

19,95,085

5,94,300

2,11,449.42

9351826.42

64,38,840

5,94,300

2,11,449.42

3. Gross Profit/Loss(1-2) 89,03,413.58


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12. BREAK EVEN POINT

Break Even Point = (Fixed Cost*100)/(Fixed Cost + Profit)

= 11.51

Documents

Production of Furniture