NEW PROJECT PROFILE ON ADJUSTABLE HOSPITAL BEDS

1. PRODUCT

2. QUALITY AND STANDARD

: As per IS/Customer Specification

3. PRODUCT CAPACITY (P.A.)

: General Purpose Hospital Beds - 150 Nos. Fowlers Hospital Beds Value - 47.25 Lac - 250 Nos.

4. MONTH & YEAR OF PREAPARATION : MARCH, 2012

PREPARED BY
MSME DEVELOPMENT INSTITUTE Ministry of Micro, Small and Medium Enterprises 22 Godown, industrial Estate, Jaipur 302006 Rajasthan Phone : 0141-2212098, 2213099, 2215847, Fax : 0141-2210553 Email : dcdijaipur@dcmsme.gov.in Visit us : www.msmedijaipur.gov.in Udamai helpline : 1800-180-6763

NEW PROJECT PROFILE ON

ADJUSTABLE HOSPITAL BEDS
1. INTRODUCTION :Adjustable hospital beds are made of steel Sr_ normally used in Govt. Hospital, Private Hospital, & Nursing homes etc. There are two types of hospital beds namely: i) General purpose Hospital Bed Steeds ii) Fowlers Hospital Beds

2. MARKET POTENTIAL The demands for adjustable beds are increasing day by day due to the following reasons: i) Increase the number of Hospitals in private sector& their expansion) ii) Increase in number of private & Government nursing homes & their expansion. The Govt. is encouraging new hospitals & nursing homes in private sectors in order to increase treatment facilities in accordance with the development in public health sector & as such it is likely to be a steady increase in the demand for hospital furniture. However, the growth rate is expected to be more than 5% to 8% per year and as such it may be ideal for the existing steel furniture manufacturer units to take up this activity for not only as diversification but also better capacity utilization by installing a few balancing equipments.

3. PRODUCTION TARGET It is proposed to manufacturer 400 adjustable Beds per annum. 4. BASIS & ASSUMPTIONS i) This project profile is based on 8 working hours a day and 25 days in a month and the break even efficiency has been calculated on 75% capacity utilization basis. ii) The gestation period in implementation of the project may he about 8 to 12 months. This period included making all arrangements, completion of all formalities, market surveys and tie ups, financial arrangements, purchase of machines, recruitment of staff, commissioning of plant and trial production etc. iii) The normal wages and salaries being paid in the industry to various grades of personnel have been considered and also the provision of minimum wages has been taken care of. iv) The rate of interest both for fixed and working capital have been taken as 14%- P.A. v) The pay hack period for finance to the financial institutions may be about 8/10 years in case of term loan. The working capital loan may however be in a shape of rolling/limit based capital.

5. IMPLEMENTATION SCHEDULE : Implementation of the project involve various activities like market surveys and tie-ups, procurement of know-how, arrangement of premises/ land, building, preparation of project report, registration, financing, purchase of machines, commissioning of project, recruitment of staff and training, arrangement of power, procurement of raw materials, packing materials, trial production etc. in order to implement the project
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efficiently and in the shortest period there is a need to initiate many activities simultaneously as far as possible. This will not only cut the slack period hut also will give quick results and be cost effective. It is advised to follow PERT/CPM/NET WORK analysis technique for implementation along with their estimated time requirement is given below :

S. No. 1. 2. 3. 4. Market Survey

Activity

Estimated period required 15-20 Days 30 Days 30-45 Days

Procurement of know how/experts Arrangement of Premises

Obtaining quotations and preparation of 15-20 Days project repot

5. 6. 7. 8. 9. 10.

Registration and Financing Recruitment of personnel and training Obtaining power connection Procurement of machines and equipments Installation and Electrification of machinery

45-60 Days. 30-45 Days 15-30 Days 45-60 Days 20-30 Days

Procurement of raw materials, consumables, 5-10 Days packing materials etc.

11. 12.

Product Development/Trial Production Commercial Production

5-10 Days 5 Days

6. PRODUCTION DETAILS & PROCESS OF MANUFACTURING : The Basic Operations involved in the manufacturing of adjustable beds are as follows: (i) (ii) (iii) (iv) (v) (vi) Cutting & Bending of pipes Cutting of MS angles Cutting of strips Welding & Riveting Grinding Assembly of elevating mechanism

(vii) Painting & Baking 7. INSPECTION & QUALITY CONTROL : IS : 7378-1974 specifies dimensional & other requirement of fowlers beds used in hospitals. The above specification may be followed for quality control.

8. ENERGY CONSERVATION : This industry is not a large power consuming industry, however maximum care should be taken in utilization of electrical energy.

9. POLLUTION CONTROL : These types of industries are not producing any effluents or any other polluting material. Therefore pollution control measures are not taken into account. 10.PRODUCTION CAPACITY : This unit is envisaged to produce 400 Nos. of different types of hospital beds to the worth of Rs. 47.25 Lakh.

11.LAND & BUILDING : 200 Sq. Mtrs. Built up shed rented @ Rs. 5000/- per month. 12.MACHINERY AND EQUIPMENT : S. Name of Machine No. 1. Pipe bending machine operated fabricated. 2. 3. Arc welding set Gas Cutting set with 1 Set torch, 1 Set 25000.00 20000.00 25000.00 20000.00 with fixtures Rate Amount (Rs.) (Rs.) hand 3 Nos. 30000.00 90000.00 locally Qty.

regulators etc. 4. Bench Drill Machine 13 mm 1 No. capacity 5. Portable drilling machine 13 mm 1 No. capacity 6. Flexible wheels 7. Double ended bench grinder 1 No. 20000.00 20000.00 shaft grinder 150mm 1 No. 10000.00 10000.00 20000.00 20000.00 25000.00 25000.00

300mm sizes 8. Hand Shearing Machine 3 mm 1 No. Capacity 9. Baking oven 2.5 x 2 mts. X 2 mts. 1 No. Size 20 Kw. Capacity 10. Hand Press No. 4 2 Nos. 7500.00 15000.00 70000.00 70000.00 10000.00 10000.00

11. Cleaning, Pickling, Phosphating LS tanks 2.5x2x2 mts. 12. Compressor with spray gun unit for 1 No. painting.
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Ls 1000000.00

20000.00

20000.000

13. Riveting Machine portable type 1 No. electrical operated. 14. Hand tools, instruments etc. 15. Fixtures & Dies 16. Electrification & Installation -

25000.00

25000.00

15000.00 50000.00 51500.00

@10% cost of Machinery 17. Office equipments/work table etc. 18. Pre-operative expenses TOTAL 75000.00 50000.00 691500.00

13. STAFF & LABOUR : S. No. 1. Supervisor 2. 3. 4. 5. 6. 7. Name Qty. 1 No. 1 No. 1 No. 2 Nos. 2 Nos. 2 Nos. Rate (Rs.) 9000.00 7000.00 4000.00 8000.00 4000.00 4000.00 TOTAL Amount (Rs.) 9000.000 7000.00 4000.00 16000.00 8000.00 8000.00 8800.00 60800.00

Clerk/Accountant Peon/Chowkidar Skilled Worker Semi-Skilled Worker Helpers Labour Benefits @20%

14. RAW MATERIAL (P.M.) : S. Name No. 1. M.S. Angle iron 40mm x 40mm x 3mm & 38mm x 38mmx3mm 0.75 MT @Rs. 455000/- per MT. 45/2. M.S. Tubes 38.10mm OD x 1.6mm/1.22mm thick 1.5 M.T. @ Rs. 55000/- per MT. 55 Kg.
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Amount (Rs.) 33750.00

82500.00

3.

M.S. Tubes 25.40mm OD x 1.6mm/1.22mm thick 1.25 M.T. @ Rs. 38000/- per MT

47500.00

4.

M.S. Tubes 19.5mm ODx1.22mm thick 0.75 MT @ Rs. 38000/- per MT

28500.00

5.

M.S. Strips 1.25mm x 25mm 0.75M.T. @ 47000/per MT 47/-Kg.

35250.00

6. 7.

Castor Wheels 200 Nos. 350/- 4 pieces Nuts, Bolts, Screw, Washers, Flats, Rubber Items & Paint Etc. L.S. TOTAL

17500.00 20000.00

265000.00

15. UTILITIES : 1. 2. Power (L.S.) Water (L.S.) TOTAL 10000.00 2000.00 12000.00

16. OTHER EXPENSES (P.M.) : 1. 2. 3. 4. 5. 6. 7. 8. 9. Rent Postage & Stationery (L.S.) Telephone (L.S.) Repair & Maintenance (L.S.) Consumable Stores (L.S) Transport Charge (L.S.) Advertisement & Publicity (L.S.) Insurance (L.S) Sales Expenses (LS) TOTAL 5000.00 1000.00 2000.00 2000.00 3000.00 2000.00 2000.00 2000.00 10000.00 29000.00

17. WORKING CAPITAL (P.M.) : 1. 2. 3. 4. Staff & Labour Raw Material Utilities Other Expenses TOTAL Working Capital for 3 months = 366800 x 3 = 1100400.00 18. TOTAL WORKING CAPITAL (P.M.) : 1. 2. Machinery & Equipment Working capital for three months 641500.00 1100400.00 TOTAL 1741900.00 19. COST OF PRODUCTION (P.A.) 1. 2. 3. 4. 5. Recurring Expenses Depreciation on Machinery @ 10% Depreciation on Jigs & Fixtures @ 20% Depreciation on office equipment, furniture @ 20% Interest on total capital @ 14% 1741900.00 45000.00 13000.00 15000.00 243866.00 TOTAL 2058766.00 608000.00 265000.00 12000.00 29000.00 366800.00

20. TOTAL SALES (P.A.) 1. 2. By Sale of 200 Nos. Fowlers hospital beds@9000 each By Sale of 150 Nos. General Purpose Hospital beds @ 5000 TOTAL 2550000.00 1800000.00 75000.00

21. PROFIT Profit = = = Total Size - Cost of Production 2550000.00 - 2058766 491234.00

Percentage of Profit on Sale : = = Profit x 100 Total Sale 19% = 491234 x 100 2550000

Percentage of Return over Investment : = = Profit x 100 Total Capital Investment 28% = 491234 x 100 1741900

Break Even Point (B.E.P.) = Annual Fixed cost x 100 Annual Fixed cost + profit

ANNUAL FIXED COST 1. 2. 3. 4. 5. Rent Interest on Total Capital Investment @14% Depreciation on machinery & equipment @ 10% 40% of salaries 40% of other expenses including utilities & excluding rent & insurance. TOTAL Break Even Point (B.E.P.) = = 739406 x 100 739406+491234 60% = 739406 x 100 1230640 739406.00 60000.00 243866.00 45000.00 291840.00 139200.00

ADDRESSES OF MACHINERY SUPPLIERS : 1. M/s. Kwality Machine Tools, No. 25, J.C. Road, Near VSL Building, Bangalore-2 2. M/s. K. G. Khosla & Co. Mathura Road, Badarpur, Delhi 3. M/s. Indian Oxygen Ltd. Nagaraj Road, New Delhi 4. M/s. Perfect Machine Tools, Grant Road, Bangalore-1 5. M/s. Batliboi Engineer Pvt. Ltd. 99/2, 99/3 N. R. Road, Bangalore

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