Transcript
Presentation on Envelope Printing UnitFebruary 28, 2016
Rubina Momin 250Akshata Nar 253Prachi Malgundkar 245 Reema Maurya 247Aarti Bist 212Harshada Kulkarni 241
MFM – 2nd SemProduction ManagementGroup - 4
Production Process
The manufacturing process of envelopes involves the following steps:- Cutting paper into required sizes- Feeding cut papers into the envelope making machine in blocks of 150 to 200 sheets depending upon the thickness of the paper,- Folding and gluing the envelopes to form the required envelop,- The envelopes are, then, packed in thousands and distributed to retail stationery shops.
The process doesn’t have adverse effect to the environment.
Production Programme
The fact that manufacturing of envelopes is a very simple processes, it may take only a short time to develop the specific skills and know how of envelop production. But the market penetration will take two years. The production build-up programme is, therefore, recommended to be 50% and 70% of the full capacity operation in the first and second year and 90% in the third year and thereafter respectively.
Manufacturer
Wholesaler Retailer Corporate Clients
Distribution Strategy
We will produce envelopes only when an order is placed .
No inventory cost.
No wastage
No money blocked in purchasing the raw material.
Though we will keep a few envelopes ready in case there is an instant demand.
SWOT Analysis
StrengthCapabilitiesMarketing - reach, distribution awarenessFlexibility on Product, Pricing and Distribution
OpportunitiesMarket DevelopmentBusiness and Product DevelopmentReduce Costs
WeaknessesLack of competitive strengthFinancialsOur VulnerabilitiesTime scales, deadlines and pressuresContinuity, Supply Chain robustness
ThreatsRaw Material, energy and transport costsStrong CompetitionChange in TechnologyLoss of major customer
Production Target (Monthly)
Sr. No. Details Qty. RateTotal Income
(Rs.)
1 White and coloured enveloped made up of meplitho paper, 9x15 cm, 11x17c.m and 13x28 cm
1 Lakh 750 (per Thousand)
75,000
2 Brown and white envelops made up of craft paper 6 lakh made upto average 26x31 cm
50 Thousand
1750(per Thousand)
87,500
3 Envelopes of different size made up of useless papers
50 Thousand
550 (per Thousand)
27,500
Total 1,90,000
Machines & Equipments
Sr. No. Particulars Qty Amount (Rs.)
Amount (Rs.)
1 Paper cutting machine (of 1H.P along with the motor)
1 1,87,5 00 1,87,500
2 Envelope making machine size being 24x36 (of 5H.P along with the motor)
1 1,43,750 1,43,750
3 Dies for cutting envelopes (of different sizes) 8 1,250 10,0004 Different tools and other supporting
equipments2,500
5. Sales tax over machines (12.5%) 41,4066. Electrification installation charges 6,2507. Shops and Establishments license fees 2,000
TOTAL 4,13,406
Cost of Fixed Assets.
Sr. No. Particular Amount (Rs.)
1. Computer 15,000
2. Printer 7,000
3. Furniture 20,000
Total 42,000
Raw Material (Annually)
Sr. No. Details Qty. Rate (Rs.) Total Cost (Rs.)
1 Meplitho paper (white and other paper 70 GSM and more)
450 (Ream)
1300/-(per Rim)
5,85,000
2 Craft Paper 300 (Ream)
1150/-(per Rim)
3,45,000
3 Useless paper 300 (Ream)
800/-(per Rim)
2,40,000
4 Adhesive and other consumables 18,750
Total 11,88,750
Salaries/Wages
Sr. No. Details No. Salary (Rs.)
1. Drawings 1 25,000
2. Machine Operator 1 12,000
3. Semi skilled Operator (Helper) 1 8,000
4. Unskilled Labour 1 6,000
Total 51,000
Printing Cost Over EnvelopesPrinting or screen printing is done on the envelopes as per the customer demands.This work is done with Screen printing process or a tradle/offset press, around Rs. 10,000/- would be spent on this head. But this would be recovered from the customers.
UtilitiesAround 7HP electricity connections is needed for this unit over which the monthlyexpenditure is estimated to be Rs. 5,500/-.
Miscellaneous Expenses (Rs.) (Monthly)
Sr. No. Details Amount (Rs.)
1 Insurance 2,000
2 Maintenance / Repairs 2,000
3 Travelling / Carrying Charges 2,000
4 Telephone 1,500
5 Stationary / Postage 2,000
6 Others 1,500
Total 11,000
Total Working Capital (Monthly) Rs.
Sr. No. Details Amount (Rs.)
1 Raw Material 1,00,000
2 Salaries / Wages 51,000
3 Utilities (Electricity) 5,500
4 Miscellaneous Expenditure 11,000
5 Rent 10,000
6 Bank EMI payment with int @ 12% 18,888.88
Total 1,96,388.88
Capital Structure
Particulars Amount (Rs.)
Personal Funds: Cash 4,00,000
Loan from Bank @ interest rate of 12%
for 3 years
5,00,000
Total Capital and Liabilities 9,00,000
Sr. No. Investment Amount (Rs.)
1 Machines & Equipments 4,13,406
2 Fixed Assets 42,000
3 Working Capital 1,45,079
Total 5,99,891
Total Investment
Production Cost
Sr. No. Production Amount (Rs.)
1 Working Capital 17,40,948.00
2 Depreciation of Machines 41,340.60
Total 17,82,288.60
Profitability
Sr. No. Profitability Amount (Rs.)
1 Annual Profit 1,23,360.00
2 Break Even Point 17,46,666.00
Particulars Monthly Monthly B. E. P
Sales 1,59,008 1,45,555.36
Less: Variable Cost 37,500 34,327.36
Contribution 1,21,508 1,11,228
Less: Fixed Cost 1,11,228 1,11,228
Profit 10,280 0
• Our aim would be to retain the customers by giving them a good margin, then offered in the market.
• Delivery on time.
• If we start making good profit by the end of third year, we can look at starting printing of brochures and banners.
THANK YOU
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