MANUFACTURING OF BONE CHINA PORCELAIN PRODUCTS
Introduction
Bone China porcelain products are decorative products that can be used by many
consumers especially hotels, recreation centres, events management enterprises,
office and home decoration enterprises etc.
The targeted output for the project is 39,936 pieces of high quality bone china
porcelain products produced annually requiring an estimated fixed capital of
40,250US$, operating costs of 77,890US$, realizing an estimated revenue of
776US$, in the first year of operation.
Production Capacity, Technology and
Process
The raw materials such as: clay, feldspar, silca, stone dust, vanacurinite etc.
are first crushed using jaw crushers, hammer mills or ball mills. After that,
they are cleaned to remove improperly sized materials, and later passed into a
mixer to mix the cleaned materials. Using the soft plastic method of
production, here the materials after cleaning and mixing are shaped by manual
molding, jiggering or ram pressing, wheel throwing where the mixed material is
put on the wheel and shaped while the wheel turns. After shaping the materials,
bisque firing takes place and here heating of the products is done at
relatively low temperatures to vaporize volatile contaminants and minimize
shrinkage during firing. The products are passed to an electric kiln where
fifing takes place using high temperature ranging between 1,000 to 1,5000c. The
products are left to cool and later packaged for selling and distribution.
Market Analysis
The market for bone China porcelain exists in the country with major consumers
such as: supermarkets, restaurants, wholesale shops and retail shops etc.
Investment Scale, Capital Requirements
and Equipment
The investment scale and capital requirements depend on the goals and
objectives of the project. The equipment needed for the project may include
those as tabled below.
Production
and Operating Costs in US$
Direct Materials, Supplies and Costs
|
Cost Item |
Units |
Unit |
Qty/day |
Prod |
Prod cost/month |
Prod |
|
Direct Costs |
||||||
|
Clay &Stone dust |
Kgs |
0.025 |
128 |
3 |
83 |
1,125 |
|
Kgs |
15 |
7 |
101 |
2,625 |
31,500 |
|
|
Kgs |
0.003 |
4,000 |
10 |
260 |
3,120 |
|
|
Packaging |
Pcs |
0.225 |
128 |
29 |
750 |
9,000 |
|
Sub-total |
4263 |
143 |
3,718 |
44,745 |
||
|
General costs (Overheads) |
||||||
|
Labour costs |
1,217 |
14,600 |
||||
|
Utilities |
561 |
6,732 |
||||
|
Administration expenses |
375 |
4,500 |
||||
|
Miscellaneous expenses |
83 |
1,000 |
||||
|
Depreciation |
526 |
6,313 |
||||
|
Sub-total |
2,762 |
33,145 |
||||
|
Total Operating Costs |
6,480 |
77,890 |
1) Production costs assumed are for 312 days per year with daily capacity of
producing 128 pieces of bone china porcelain products.
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 |
|
Bone
China |
128 |
39,936 |
1.95 |
77,890 |
3.5 |
139,776 |
Profitability Analysis Table
|
Profitability Item |
Per Day |
Per Month |
Per Year |
|
Revenue |
448 |
11,648 |
139,776 |
|
Less: Production &Operating Costs |
250 |
6,491 |
77,890 |
|
Profit |
198 |
5,157 |
61,887 |