Refractory Bricks Manufacturing

The stages that we should follow it to build a project:

1. Pre-investments study.
2. Investment period.
3. Start up.
The purpose of the project:
The idea of this project is that it projects non-current and demand
growing for its lack in the labor market as well as the covers of this
project several other projects could supply output to factories refractory
bricks manufacturing
Project contents:
1. Buildings.
2. Utility.
3. Material.
4. Manpower.
5. Machines.
6. Internal transport.
7. Offices.
Demand:
permenant
-better specifications
-cheaper price
-seasonal product
consider demand: 3million brick
bottles/year(1/18 of total market).
During first five years the demand can be reach 3.5million
brick/year.
theoretical capacity of refractory bricks line 2000 brick /year.
Actual production/year:
- 2000 brick /year
- 0.75 factor to consider (adjustment,repair,maintenance and so on)
- 2 shifts (we dont need more than 2 shifts/day to achieve the
required
- 6 hours / day working
- 200 days/ year/seasonal product.

Actual Production/year =2000*0.75*2*6*200=.3.5 million brick /year.

Sales value:
Demand = 3.5 million brick / year.
Unit price =1.5 L.E
Sales value=demand*unit price=3.5*1.5=5.25 million/year.
Layout:

Contains of layout:
1- refractory bricks zone separated
2-production and working in one building which contains
- drying room
- finishing bodies room
3-stores one building one floor
4-utility separated in one building
5-security
6-quality control offices in one building

8-management in one building one floor.

the following reasons let us to choose this site :1. permanent activity.
2. control of environment.
3. availability of money.
the factory consists of one building because one building
Characterized by several reasons:

1. Connected process
2. Easy control
3. Utility is minimum
4. Flexibility Of planning .
Building of factory consists of one floor because characterized by:
1. Less poles and light roof.
2. No area for Ladders and elevators.
3. The suitable height of machines without restrictions.
4. Easy use of natural light from roof.
5. Simple internal transportation.
6. Connected process.
7. Easy control or supervision

Total investment costs:

Fixed investment costs
-buildings = 450000 L.E.

- machinary = 200000 L.E.

-auxiliary equipment = 100000 L.E.
pre-production costs :-Pre-investment study = 20000 L.E.
-Training = 10000 L.E.
net working capital
-raw material imported = 200000 L.E.
-raw material local = 100000 L.E.
-inventory = 100000 L.E.

Total investment cost = 1180000 L.E.

Total production cost
- Raw materials =3000000 L.E.
- Spare parts (5%of machines) = 10000 L.E.
- Salaries (15 employers) = 200000 L.E.
- Maintenance = 50000L.E.
- Depreciation of building (5% of building) = 200000 L.E.
- Depreciation of machinery (10% of machines) =200000 L.E.
Total = 3660000 L.E
Sales and distribution cost(Nearly equal 25% of 3660000) =
1000000L.E.
Total production cost = 1000000+ 3660000= 4660000L.E.
Net profit = sales value(demand*unit price) - total production cost
Net profit = 5250000 4660000 =590000L.E.
Return on investment = net profit / total investments cost =590000 /
1180000 = 50%
break even point (BEP) :- which this value equal total production cost:

Units sold

Sales value

Variable cost

Fixed cost

Units produced
B.E.P

 Type of layout is Product layout for this reasons

1. As the machines are arranged according to the sequence of
operation of product.
2. Is suitable for one type of products of large quantity.
Advantages of product layout:1. Production time is lower
2. Total material handling cost is lower
3. Smaller floor area per unit of the operation
4. Production control is simple
5. Greater incentive for the workers as a team to raise productivity.
Disadvantages of product layout:1. Duplication of processing equipment
2. Investment cost more
3. Not flexible for new product
4. In the breakdown of even one machine the production will stop.
5. In case of growing incentive, an efficient worker may lose due to
less efficient worker.
Process system (processing activities) :This project is continuous system and characterized by:
1.
2.
3.
4.

used to produced large volume of single item or relatively few items.

On specialized equipment following a fixed path.
Items follow a similar production sequence.
Routing and scheduling focus on flow control that govern the rate of
flow of raw material and finished products.
5. High volume standardized design and made for stock.
The utility used:
1. electricity.
2. water.
3. sewage.

 Construction plan:

commisioning
fucture

advertising

employee
utility
Erection of
aux.
Auxiliary of
equip.
Construction
of build
Erection of
equip.
Manufacture
of equip.
study
months

10

11

12

HigherTechnological Institute
Tenth of Ramadan City

Planning and management of small projects

Present By: Sayed Mesallamy Amin Hassan

ID NO: 20121669
GR:1
Subject: A Project of Refractory Bricks Manufacturing
Presented to DR: Mohamed Fekry