MAKING PLASTIC COMBS
Introduction
Combs are an essential requirement of
every household and are method. Other materials like polypropylene, cellulose
acetate, butyrate, and high impact polystyrene are used for the manufacture
of combs by injection moulding techniques. With better designs, the market for
combs exists since everyone has to comb, be it men or women. The project cost
is US $208,303 producing 1,000,000
units annually and giving estimated revenues amounting to US $300per year.
Production Process
The polypropylene granules, because of
cost effective nature are fed into the hopper of an injection-moulding system.
The mould is held in between the two clamping units, wherein the materials
injected into the mould get elasticized under high pressure resulting in a
moulded article i.e. comb. After cooling, the mould is opened and the comb
ejected, which is followed by buffing, polishing and hot foil printing.
Finally, combs are wrapped in waterproof paper covers and packed for the
market. The plant has a capacity of 3,205 combs per day working 26 days in a
month.
Market Analysis
The marketing for plastic combs is very wide as these are generally used items by every household, General store, supermarkets and Saloons as the out lets. The major key players in this Industry include; NICE Plastics (U) Ltd, and Mukwano Group of Companies.
Capital Investment Requirement in US $
|
Item |
Units |
Qty |
Cost |
Total |
|
Injection Moulding machine |
No |
1 |
1,250 |
1,250 |
|
Scrap grinder |
No |
1 |
500 |
500 |
|
buffing, polishing & stamping machine |
No |
2 |
1,000 |
2,000 |
|
Moulds |
No |
10 |
30 |
300 |
|
Testing Equipment |
No |
1 |
125 |
125 |
|
Total cost of Machinery & Tools |
4,175 |
1. Production costs assume 312 days per year with daily capacity of 3,205 combs.
2. Depreciation (fixed asset write off) assumes 4 year life of assets written off at 25% per year for all assets.
3. Direct costs include: materials, supplies and all other costs incurred to produce the product.
4. A production month is 26 work days
5. Currency
used is US Dollars.
Production and Operating Costs in US $
Direct Materials, Supplies and Costs
|
Cost Item |
Units |
Unit |
Qty |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Polypropylene |
Kgs |
30.00 |
3 |
96 |
2,500 |
29,998.80 |
|
Mould |
ltrs |
1.5 |
0.2 |
0.240 |
6 |
75.00 |
|
Lubricant |
ltrs |
6.00 |
0.13 |
1 |
20 |
240.00 |
|
packaging |
Pckts |
2 |
31 |
46.73 |
1,214.95 |
14,579.44 |
|
Recycled |
kgs |
3 |
156 |
389.25 |
10,120.50 |
121,446.00 |
|
Other |
Ltrs |
50 |
1.00 |
50.00 |
1,300.00 |
15,600.00 |
|
Sub-total |
583 |
15,161.60 |
181,939.24 |
|||
|
General Costs (Overheads) |
||||||
|
Labour |
260 |
3,120 |
||||
|
Selling & distribution |
200 |
2,400 |
||||
|
Utilities (Water, power) |
1,000 |
12,000 |
||||
|
Rent |
500 |
6,000 |
||||
|
Miscellaneous expenses |
150 |
1,800 |
||||
|
Depreciation |
86.9 |
1,044 |
||||
|
Sub-total |
2,110 |
26,364 |
||||
|
Total Operating Costs |
17,271.60 |
208,302.94 |
Project product costs and Price Structure in US $
|
Item |
Qty/day |
Qty/yr |
Unit |
Prod |
Unit |
Total |
|
Plastic |
3,205 |
1,000,000 |
0.2 |
208,303 |
0.3 |
300,000 |
Profitability Analysis in US$
|
Item |
Per |
Per |
Per year |
|
Revenue |
962 |
25,000 |
300,000 |
|
Less: Production and operating costs |
668 |
17,359 |
208,303 |
|
Profit |
294 |
7,641 |
91,697 |
.