DECORATION OF CERAMIC WARE
Introduction
Ceramic wares are precious products that have a high demand by many users
.Decoration of ceramic wares to add more value can be an eye catching part that
can differentiate the products from the rest and thus commanding an increased
demand both domestically and across the borders. This project idea has been
developed basing on the need to explore the abundant market that exists in the
country as most of the ceramic ware is imported. The estimated fixed capital is
24,650US$, with operating costs of 94,545US$, and an estimated revenue of
680US$ in the first year of operation.
Market Analysis
The market for Ceramic wares readily exists in the country since most of the
products are household products.
Production Capacity, Technology &
Process
The process of decorating ceramic ware takes majorly two processes namely;
Plastic decoration form and painting form. In plastic form, ceramic decoration
is accomplished while the clay is pliable. This form includes the physical
shaping of the object itself, incising, impressing, embossing, or ornamentation
(ceramic flower application). The painting form of ceramic decoration pertains
to the surface coloring and includes slip painting, under glaze, glaze, and
over glaze types. This type of decoration changes the surface of the ware both
eye and sense touch. The designs are made by computers and printed out in form
of custom ceramic decals. The mixture of metal oxides and salts with powdered
glass and suspended in a plastic material before firing can produce rich
palette of colors after firing.
Investment Scale, Capital Requirements
and Equipment
Capital Investment Requirements in US $
|
Capital investment item |
units |
Qty |
unit |
Total |
|
Land and Buildings |
No |
- |
- |
15,700 |
|
Powerful Computers |
No |
1 |
2,000 |
2,000 |
|
Image Scanners |
No |
2 |
1,400 |
2,800 |
|
No |
1 |
2,250 |
2,250 |
|
|
Furniture &Fittings |
No |
- |
- |
2,500 |
|
Electric Kiln |
No |
1 |
5,850 |
5,850 |
|
Delivery Van |
No |
1 |
7,000 |
7,000 |
|
Other Tools |
No |
- |
- |
2,250 |
|
Total |
24,650 |
Multi-Colour printing
equipment
Production and Operating Costs
Direct Materials, Supplies and Costs
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Precious metals |
Kgs |
7.8 |
2 |
15.5 |
404 |
4,850 |
|
Metal Oxides |
Kgs |
5.8 |
2 |
11.5 |
300 |
3,600 |
|
Powdered Glass |
Kgs |
2.0 |
7 |
14.3 |
371 |
4,450 |
|
Ceramic ware |
Pcs |
1.8 |
60 |
108.2 |
2,813 |
33,750 |
|
Painting |
Pcs |
4.0 |
4 |
16.0 |
417 |
5,000 |
|
Printing frames |
Pcs |
1.7 |
5 |
8.3 |
217 |
2,600 |
|
Magazines Other |
Pcs |
2.5 |
3 |
7.5 |
196 |
2,350 |
|
Sub-total |
83 |
181.4 |
4,717 |
56,600 |
||
|
General Costs(Overheads) |
||||||
|
Labour costs |
1,400 |
16,800 |
||||
|
Utilities |
561 |
6,732 |
||||
|
Administration expenses |
208 |
2,500 |
||||
|
Selling & distribution |
313 |
3,750 |
||||
|
Miscellaneous expenses |
167 |
2,000 |
||||
|
Depreciation |
514 |
6,163 |
||||
|
Sub-total |
3,162 |
37,945 |
||||
|
Total Operating Costs |
7,879 |
94,545 |
1) Production costs
assumed 312 days per year with daily capacity of producing 60 pieces of ceramic
ware.
2) Depreciation (fixed asset write off) assumes 4-years life of assets written
off at 25% per year for all assets.
3) Direct costs include materials, supplies and other costs that directly go
into production of the product.
4) Total monthly days assumed are 26-days.
5) The valuation currency used is United States Dollars.
Project Product Costs and Price Structure
|
Item |
Qty/ |
Qty/yr |
Unit |
Prod |
Unit |
Total Revenue |
|
Decorated |
60 |
18,720 |
5.05 |
94,545 |
6.5 |
121,680 |
Profitability Analysis Table
|
Profitability Item |
Per Day |
Per Month |
Per Year |
|
Revenue |
390 |
10,140 |
121,680 |
|
Less: Production & Operating Costs |
303 |
7,879 |
94,545 |
|
Profit |
87 |
2,261 |
27,136 |