Initial Information of Kabra ExtrusionTechnik Ltd

By

[Group-10, Section B]

Antrish Singhal, WMP6071

Archit Khandelwal, WMP6072

Parul Kumar Bhatia, WMP6094

Pradeep Aggarwal, WMP6096

A report submitted in fulfillment of the assignments for

MANAC-2

WMP 2013

Indian Institute of Management, Lucknow

Noida Campus

2010

Date: 04-09-2010

Table of Contents1 Assignment.....................................................................3

2 Analysis..........................................................................3

2.1 Products3

2.1.1 PVC Casing-Capping.......................................................................3

2.1.2 PVC Electrical Conduit Pipe............................................................4

2.2 Production Process 4

2.3 Cost Sheet 8

1 Assignment

The assignment is to provide initial information obtained from the company.

2 Analysis

2.1 Products

The company at one of its factory manufactures following products:

1. PVC Casing-Caping

2. PVC Electrical Conduit Pipe

2.1.1 PVC Casing-Capping

Applications:

Open wiring in industrial / residential and commercial buildings. Street light and traffic light signals. Wiring on buses, railway coaches, ships, aircraft etc. .

Can be used in telecoms wiring and terminals. Can be used for bare conductors. Can be used as ceiling suspended ducting.

2.1.2 PVC Electrical Conduit Pipe

Applications:

Open and concealed wiring in industries/residential and commercial buildings. House meter and water pump connections. Street light and traffic signal connections. Concealed wiring on buses, railway coaches, ships, aircrafts, etc. Being light can be used on false ceilings and sleevings.

2.2 Production Process

RAW MATERIALS

PVC Resin Calcium Carbonate Wax Stearic Acid One Pack (Heat Stabilizer) Titanium Dioxide

Mixing

Raw materials are mixed and powder blend is prepared in high speed mixers under closely controlled and monitored conditions.

Heating

The mixture so prepared is transferred to the heating chamber where the mixture is heated up to 130-135 degree Celsius for 12 minutes.

Cooling

The heated mixture is then cooled for about 5 minutes to 45 degree Celsius.

Mixer

Loader

The mixture is then loaded on to the loader. This loads the mixture into the extruder.

Extrusion

This is the process of converting a plastic raw material into homogeneous melt under controlled temperature and mixing and then forcing the material under pressure through a shaping die orifice and subsequently setting the required shape by means of a cooling and sizing system. The main components of extruder are:

o Hopper The machine is fed with dry blend PVC compound through hopper.

o Screw barrel Screw is used as a mixing and pumping element. The screw is rotated in a

heated barrel in which feed opening is placed radically or tangentially at one end of the barrel and die axially at other end. The rotating screw takes the material from a feeder through a heated barrel zone and compact it against the

breaker plate and other restriction so that pressure builds up which forces the material through the restriction to the extrusion die where it is given form of shape.

Extruder

DIE

The opening that allows plasticated material to form particular shape is achieved through DIE. Dies can take on a variety of shapes and have adjustable openings. So, different Dies are used for Casing-Capping and Electrical Conduit.

Vacuum Tank

This tank, filled with water, cools the pipe coming out of DIE. An electric motor is connected to the tank which empties the water from the tank and fills it again with fresh water. Different sizers are used for Casing-Capping and Electrical Conduit.

Printing

Pipe coming out of vacuum tank goes under the printing machine which prints the name of the company on the pipe.

Haul-off unit

This function of the haul-off unit is to drive the pipe away from unit without jerking at constant speeds.

Cutting unit

This unit cuts the pipe at desired length.

The whole production process is shown below:

2.3 Cost Sheet

Direct Material (Per Batch)

Material Quantity Used (in Kg) Price (in Rs.)/kgPVC Resin 25 61Calcium Carbonate 2.5 12Wax 0.15 75Stearic Acid 0.3 72One Pack (Heat Stabilizer) 0.3 110Titanium Dioxide 0.25 110

Quantity Produced

Product

Batches Produced Per Day

No. of pieces in a batch

Monthly Production in batches (if whole month is worked on single product)

Monthly Production in pieces

Weight per piece (in grams)

Casing & Caping 30 100 780 78000 300Electrical Conduit 75 25 1950 48750 600

Salary & Wages

Salary/month1 Manager (1 NO) 15,0002 Accountant (1 NO) 7,0003 Watchman (3 NOS) 10,5004 Supervisor (1 NO) 12,0005 Labor (7 NO) 42,0006 Lab Assistant (Quality Inspector) (1 NO) 6,000

Plant & Machinery

S.NO. PLANT & MACHINERY PRICE (RS)1 Extrusion Machine 2791600.002 30 Kgs Mixer/Cooler 324800.003 Belling Machine 515700.004 PVC Pipe Testing Equipment 250000.005 Chilling Plant 6 Tonnes 250000.006 Air compressor 2 HP 30000.007 Water Pump - 2 Nos. 30000.00

Total = Rs. 4,192,100/-

Useful life = 5 yrs. (Depreciation is charged on straight line basis)

Annual Depreciation = 4192100/5 = 838420

Power, Building & Water

1 Twin Screw 59 HP2 Mixer/Cooler 22 HP3 Chilling Plant 15 HP4 Air Compressor 2 HP5 Water Pump 15 HP6 Scrap Grinder 7.5 HP

7Belling Machine 9 HP

8 Lighting 15 HP Total 135 HP

Consumption/month = 135 HP X 0.75 KW X 0.6 X Rs. 4.5 per unit X 208 (hours/month) = Rs. 56,862/-

Other Expenses (Per Month)

Rent 80,000Printing (This involves printing company name and logo on products)

10,000

Maintenance and general overheads10,000