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Project Report - Jib Crane Manufacturing

1. The document provides a project profile for establishing a manufacturing unit to produce 250 portable jib cranes per year with an estimated annual production value of Rs. 7,500,000. 2. The proposed manufacturing process involves cutting, welding, and machining operations on steel to produce the crane components, which are then assembled and painted. 3. The total capital investment required is Rs. 29,970,000, including fixed capital of Rs. 15,750,000 for land, building, machinery, and working capital of Rs. 14,220,000 for 3 months. The projected net annual profit is Rs. 1,229,000 with a rate of return of 41%.

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1K views8 pages

Project Report - Jib Crane Manufacturing

1. The document provides a project profile for establishing a manufacturing unit to produce 250 portable jib cranes per year with an estimated annual production value of Rs. 7,500,000. 2. The proposed manufacturing process involves cutting, welding, and machining operations on steel to produce the crane components, which are then assembled and painted. 3. The total capital investment required is Rs. 29,970,000, including fixed capital of Rs. 15,750,000 for land, building, machinery, and working capital of Rs. 14,220,000 for 3 months. The projected net annual profit is Rs. 1,229,000 with a rate of return of 41%.

Uploaded by

tvmehta01
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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PROJECT PROFILE ON PORTABLE JIB CRANE

PRODUCT

PORTABLE JIB CRANE

PRODUCT CODE

NIC CODE: 29151


ASIC CODE: 76804

PRODUCTION CAPACITY

Quantity: 250 Nos.


Value: Rs. 7500000

QUALITY & STANDARDS

AS PER IS: 4573-1968 &


IS: 807-1976

MONTH & YEAR OF


PREPARATION

October 2009

PREPARED BY

Mechanical Division
Micro
Small
&
Medium
EnterprisesDevelopment Institute,
10 Industrial Estate, Pologround,
Indore 452 015
Phone: 0731-2421037/2421540/2421048
Fax: 91-0731-2420723
Email: [email protected]

INTRODUCTION
Portable Jib Crane is a small lifting, and material handling equipment used in
engineering workshops as well as in Godowns & Ware houses. Jib Cranes can
be used for lifting of different type of material in the segments where frequent
lifting & handling of material activity is required. Portable Jib Cranes is
manually operated. However, electrical power is sometimes required for lifting
operation, according to the need. Special types of Jib Cranes are also used in
positioning the Cameras in shootings.
According to the need Jib Cranes can be mounted on walls, Top Elevating etc
with electric hoisting systems.
MARKET
Because of low cost and versatile use, there is a very good market, potential for
this product. As described earlier portable Jib Cranes are used in Industrial
Activity for material handling and lifting purposes, therefore the size of market
is very big.
The market is continuously increasing with the growth of
Industrialization and Godowns, Warehouses etc. Since very few units are
engaged in manufacturing of this product in this region, there is a bright
market potential for Jib cranes in the indigenous market as well as in
developing countries.
BASIS OF PRESUMPTIONS
1. The scheme is prepared on the basis of single shift and 300 working days
in a year.
2. Max. 5 year period is envisaged for achieving full capacity utilization.
3. Lobour wages are based on the prevailing wages in the state.
4. Interest rate on fixed as well as on working capital is taken as 14%
5. Margin money is considered to depend on negotiations with financing
institutions.
6. Estimated life of the project is about 20 years and normal loan repayment
period is about 5 years.
7. Cost of machines and raw material prices are taken on the basis of
current prices at the time of preparation of this profile.
8. Land & Building are taken on rental basis.
IMPLEMENTATION SCHEDULE
Project implementation will take a period of eight month from the date of
approval of the scheme. Break up of activities with relative time for each
activity is shown below:

S.No.
01
02
03
04
05

ACTIVITY
Project report preparation & approval
SSI provisional registration
Sanction of Loan
Recruitment of man power
Placement of orders for machinery &
other equipment
Installation of machinery
Power connection
Trial run & commencement of Production

06
07
08

TIME PERIOD IN MONTH.


0-2 months
0-1/2 months
2-4 months
4-6 months
7-8 months
6-7 months
8th Month onwards.

1.MANUFACTURING PROCESS:
The portable Jib Cranes are manufactured in different lift capacity from
Ton to 5 Ton capacity.
The Crane consists of different parts:(a)
(b)
(c)
(d)
(e)
(a)

Structure or Body
Wheels
Pivot Wheel with handle
Lifting mechanism (Chain pulley block)
Hook

STRUCTURE OR BODY:

Body or structure is made out of Seamless pipe or structural steel by


welding. The dimensions are worked out on the basis of load bearing capacity,
height, and width with handle in closed portion. Distance between base arms
at wheel (inside), maximum lifting height from floor front & pillar, lifting arm
length etc. These Dimensions are worked out as per the quality specification
fixed by BIS.
After this necessary structural design the material is cut to length with
the help of Gas Welding and Hacksaw machine. Then necessary machining
work is done on shaping machine, Milling machine, Drilling machine. After
machining the whole structure is welded properly.
(b) WHEEL
Steel forged wheels are readily purchased and machined on lathe machine.
(c) PIVOT WHEEL WITH HANDLE:
Already machined wheel is assembled with fabricated Handle and Body frame.
For fabrication of Handle necessary pipe & structural steel is cut to size on

hacksaw machine and machined on Shaper & Lathe. Side Boring of bracket is
done, fabricated and assembled.
(d) LIFTING MECHANISM:
Chain Pulley Block is readily purchased or made on Lathe & Milling machine.
Heat treated from out side & assembled on main arm of Jib Crane.
(e) HOOK:
The Hook is readily purchased item and can be put on Lifting arm of the body,
its seat is welded during fabrication of the main body. After fabrication
machining & assembly of all components is done. The Jib Crane is painted to
the recommended colour for lifting equipments by Industrial Department.
2. QUALITY SPECIFIACTION/STANDARD SPECIFICATION:
The Jib Crane, portable type should be manufactured strictly as per the BIS
No. IS:4573-1968 &IS: 807-1976 for shaft and efficient service. All the
material, geometry & dimensions should be maintained as specified to maintain
the consistency and reliability after sales.
[3] PRODUCTION CAPACITY:
S. No.
01.

Description
Jib Crane of different capacity

Quantity
250Nos.

Value (Rs.)
75,00,000/-

[4] Approximate motive power requirement for overall project 35 H.P.


[5] POLLUTION CONTROL NEEDS:
The proposed product is mechanical in nature and does not pollute the
environment. Still necessary exhaust and air circulator may be installed in the
workshop.
[6] ENERGY CONSERVATION NEEDS:
Energy efficient electrical equipments and necessary capacitors may be used to
conserve electrical energy.
(f). FINANCIAL ASPECTS
[1] Fixed Capital:

1. Land & Building:


Built up Area (Rented) - 500 sq.mts. @ Rs.30/- per sqM

Rs.15,000/-

[2] Machinery & Equipment:


a. Production unit
Sl. No.

01
02
03
04
05
06
07.
08

B
C.
D.
E.
F
3.

Description

Qty.

Value [Rs.]

Lathe machine AEC 1000mm Rajkot make


with 3 HP motor.
Milling machine universal type size 1 meter
x 250mm (M2V model) Gujrat make with all
standard accessories & motor with 5 HP
Pillar Drill capacity with 1 HP motor
Bench grinder 8 capacity with HP motor.
Power Hacksaw 12 capacity with 2 HP
motor.
Welding Transformer 300 Amp with Cable
and other accessories.
Air compressor with Spray gun with 1 HP
motor.
Shaping machine 24 stroke with 5 HP
motor, Sagar make
Total
Testing and Inspection equipments
Cost
of
Power
connection
including
transformer, if any

2 Nos.

4,00,000/-

1 No.

3,50,000/-

1 No.
1 No.
1 No.

50,000/15,000/75,000/-

1 No.

35,000/-

1 No.

35,000/-

1 No.

1,75,000/-

L.S

11,35,000/1,00,000/50,000/-

Electrification and installation charges @


10% of cost of machines & equipments.
Cost of Jigs & fixtures
L.S.
Cost of office equipments
L.S.
TOTOAL
Pre-operated expenses (Project Cost)
non refundable deposits) if any
TOTAL FIXED CAPITAL (1+2+3)
SAY

1,13,500,
1,00,000/50,000/15,48,500/25,000/15,73,500
15,75,000/-

[2] WORKING CAPITAL [PER MONTH]


[i] Personal Administrative /Supervisory
Sl.
Description / Designation
No.
01. Manager cum Foreman
02. Skilled worker
5

No.

Salary

1 no.
6 no.

15000/4000/-

Total
15000/24000/-

03.
04.
05.
06

Un-Skilled worker
Salesmen
Clerk-cum-storekeeper
Peon / watchman
Total Salary
Add perquisites @ 15 % of salary
Grand Total
Say

6 no.
4 nos.
1 no.
3 nos.

3000/6000/4000/3000/-

18000/24000/4000/9000/94,000/14,100/1,08,100/1,08,000/-

[ii] Raw Material [Including Packaging material] (Per Month)


01. Assorted M.S. sheets, rod
Angle, Channels etc
02. Assorted M.S. Pipes heavy
Gauge
03. Hardware & paint
04. Wheels,
chain,
gears,
sprockets etc
Total

1 MT

35000/PMT
300/per mtr.

250 mtrs.
LS
LS

35,000/75,000/25,000/1,50,000/2,85,000/-

[iii] Utilities per month:


1.
2

Power 3927 units @ 7/- per unit


Water consumption expenditure
Total

27,500/2,500/30,000/-

[iv]Other Contingent Expenses [per month]


Rent
Postage and stationery
Telephone /Internet
Consumable items
Repair and maintenance
Transportation
Insurance (0.5% of project cost)
Misc. expenses
Total

15,000/3,000/5,000/5,000/5,000/15,000/1,000/2,000/51,000/-

Total recurring expenses [per month]


(i+ ii+ iii + iv)
Total Working Capital
Total Working Capital for 3 months

4,74,000/-

4,74,000x3 = 14,22,000/-

Total capital investment


Fixed capital
Total Working capital for 3 months
Total

15,75,000/14,22,000/29,97,000/-

MACHINERY UTILIZATION
As the product is a low consumable one hence marketing efforts must be put
very hard to achieve optimum utilization of machines.
FINANCIAL ANALYSIS
1.

Cost of production [per year]

Total recurring cost per year


Depreciation of machinery & equipment
@ 10 %
Depreciation on Jigs & fixtures@ 20 %
Dep. on Testing equipments @ 20 %
Depreciation on office equipments @ 25%
Interest on total investment @ 14 %
Total cost of production
Say
2.

20,000/20,000/10,000/4,19,580/62,71,080/62,71,000/-

Turnover (per Year):


Portable Jib cranes

3.

56,88,000/1,13,500/-

250Nos.

@30,000

75,00,000/-

Net Profit Per Year:


75,00,000 62,71,000 = 12,29,000/-

4.

Net Profit ratio :


Net Profit X 100
Turnover

5.

= 12,29,000 x 100
75,00000

= 16.38%

Rate of return:
Net Profit x100 = 12,29,000 x100
Total Investment
29,97,000

= 41 %

6. BREAK EVEN POINT


Fixed Cost (Per Year)
Depreciation (on M/cs, fixtures & office equipments)
1,63,500/Rent
1,80,000/Interest on investment
4,19,580/40 % of salary and wages
5,18,400/40 % of other contingent expenses excluding rent and
4,41,600/insurance
Insurance
12,000/Total fixed cost
17,35,080/Say 17,35,000/Net Profit per year
Fixed Cost X 100
B. E. P.

Fixed Cost + Profit

1735000 X 100
=

1735000 + 1229000

=
Additional information ( if any):

173500000
2964000

58.53%

Marketing efforts are required on very precise basis as product is not fast
consumable
ADDRESS OF MACHINERY SUPPLIERS
1. M/s QUALITY MACHINE TOOLS,
124, Jawahar Marg, Indore.
2. M/s BHARAT MACHINERY,
Transport Nagar, Bhanwar Kua, Indore
3. M/s. MALWA ELECTRIC & ENGINEERING CORPN.
Gas Housr Road, Indore.
4. M/s. DEEPAK TRADERS,
Shastri Market, Indore.
ADDRESS OF RAW MATERIAL SUPPLIERS
LOCAL MARKET.

********************
8

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