MAKING SPECTACLE FRAMES

• Manufacturing
• Plastic And Metal Products

Introduction
This Business Idea is for manufacture and marketing of spectacle frames from plastic cellulose acetate sheets. They are mass consumption items and are used by those with eye sight problems and for protection from the sun. The project envisages producing 130 sets of spectacle frames per month on the basis of 8 hours per working day. This translates into 15,600 sets per annum. The revenue potential is estimated at US$500 per month translating into US$ 390,000 per year with a sales margin of 20% total investment requirement of US$ 270,578.

 

Production Process
Spectacle frames are made in two parts that is; one is the front which holds the two glasses and the other is the two sides which are fitted on each of the front. Generally spectacle frames are specified by Eye size and Bridge size. Eye size is the one which decides the size of the glass which it holds while the bridge size is the distance between the two glasses.

 Market Analysis
There are more people today wearing spectacles as a creative treasure and many more use sun glasses. Thus plastic frames which are trendy and fashionable have a ready market and their prices are relatively low.

Capital Investment Requirement in US$

Item	Units	Qty	Unit Cost	Amount
Sheet cutting machine	No	1	4,000	4,000
Pneumatic wire shooting machine	No	1	4,000	4,000
Front design machine	No	1	300	300
Pneumatic hinge fitting machine	No	1	3,250	3,250
Nose bumping fixture	No	1	2,000	2,000
S.P hand press and bending fixture	No	1	500	500
Side grooving machine	No	1	500	500
Drill Machine	No	1	750	750
Fixture and hammer	No	2	250	500
Special purpose fixture with heating box	No	1	250	250
Barrel polishing machine	No	1	1,500	1,500
Total				17,550

 

Production and Operating costs

 Direct Materials, Supplies and Costs in US$

Cost Item	Units	Unit cost	Qty/ day		Prod cost/ day	Prod cost/ month		Prod cost/ year
Direct costs
Cellulose Nitrates	No	50	10		500	13,000		156,000
Cellulose Acetate Sheets of 4mm to 8mm thickness	No	40	5		200	5,200		62,400
Sub total		90	15		700	18,200		218,400
General cost(overheads)
Labour				2,200			26400
Rent				50			600
Utilities(power)				20			240
Other costs				250			3,000
Depreciation(Asset write off)expenses				366			4,388
Subtotal				2,886			34,628
Total operating costs				21,086			253,028

 

 

1. Production costs assumed are for 312 days per year with a daily capacity of 231 Spectacle frames.
2. Depreciation (fixed asset write off) assumes a 4 year 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. A production month is assumed to have 26 days.
Project Product Costs and Price Structure in US$

Item	Qty/ day	Qty/Yr	Unit cost	Prod/Yr	Unit price	Total/ revenue
Spectacle frames	50	15,600	16.2	253,028	25	390,000

 

Profitability Analysis in US$

Item	Per day	Per Month	Per Year
Revenue	1,250	32,500	390,000
Less: Production and Operating Costs	811	21,086	253,028
Profit	439	11,414	136,973