COMPUTERIZED WHEEL BALANCING AND

WHEEL ALIGNMENT WORKSHOP

SERVICE CAPACITY : Wheel Balancing (15,000 Wheels/Year)
Wheel Alignment (3,000 Vehicle/Year)
Other Misc. Repairs of Vehicles
Value : Rs. 14,30,000/-

MONTH AND YEAR : July, 2014

OF PREPARATION

PREPARED BY : Sh. Ravi Ranjan

Investigator (Mechanical)

1. INTRODUCTION
It is very essential that all the Wheels of a vehicle are completely balanced
otherwise there will be bubbling of wheel and this will affect the stearing control.
Similarly if the wheel alignment of a vehicle is out of order, the rubbing of tyres will
be more and free movement of wheels also gets affected. This result into rapid wear
of tyre treads. To overcome these problems, computers wheel Balancing and Wheel
Alignment machines are used. These machines are fully automatic, very accurate,
quick and precise in their work.

2. MARKET POTENTIAL
There is a very good market potential on the computerized wheel balancing
and wheel alignment workshop. Now days, these workshops are very common in
urban areas, and suitable for all passenger cars, light trucks and motorcycles (with
special flange in case of wheel balancing). With the decline in passenger car prices
and availability of easy finance for passenger and commercial vehicles, the demand
for such computerized workshops is rapidly increasing coinciding with increase in
number of vehicles.

3. BASIS AND PRESUMPTIONS

i. The Project is based on single shift working of 8 hours a day & 75% efficiency.
ii. The rental value of the workshop has been taken at prevailing rates.
iii. The cost of machinery and equipment indicated in the Profile refers to a
particular make and prices are approximate to those prevailing at the time of
preparation of the Project Profile.
iv. The provision made in respect of consumables, personnel, and overhead etc.,
has been made at the prevailing rates and are approximate only.
v. The rate of interest has been made@ 14% per annum. .
vi. The labour charges are based upon those prevailing in local market.

-40-
 Computerized Wheel Balancing and Wheel Alignment Workshop

4. IMPLEMENTATION SCHEDULE
The main activities in the implementation of the project have been listed and
the average time for implementation of the project is estimated at 4 4 months as
many activities can be taken up simultaneously.
Period (in Weeks)
1. Preparation of project report 1
2. Registration and other formalities
3. Sanction of loan 2
4. Purchase of machinery and equipments, etc. 2
5. Installation and Electrification 2
6. Recruitment of Personnel 2

5. TECHNICAL ASPECTS
5.1. Process Outline
It is very essential that all the wheels of a vehicle completely balanced and
aligned with each other as far as possible. If these are not properly balanced, the
dynamic forces are set in motion. These forces increase the load on bearings, stress
on various members of vehicle, unpleasant and dangerous vibrations in members of
vehicle Besides, when the wheels of vehicle are not properly aligned, the free
movement of wheels gets obstructed and tyres start bubbling, which results into
lesser life for tyres, These machines display fault on screen automatically and are
equipped with automatic self-check, users friendly calibration and protection in
wheel clamping.
Working Process
i. For Wheel Balancing: The machine is fully automatic. The wheel is to be
loaded on turn table for balancing & sensor holders are attached to it. All from
and rear wheel values for the measured value printout are calculated in a single
wheel alignment run. Cordless remote control is provided with machine with
machine to enable the operator to operate the machine from the steering wheel.
In these machines, normally there is castor like adjustment and simultaneous
display of castor, camber and toe readings on computer screen. The alignment
datas are displayed in figures and also in graphic form on screen.
ii. For Wheel Alignment: The measuring process in these machines is normally
automatic. After the wheel data is entered by potential meters and the machine
started, the measuring run is made automatically until the wheel comes to a
stand-still at the point to be balanced. The degree of precision for
measurements is determined fine medium of average. The data of rim width,
rim diameter, distance can be stored in the machine along with the method of
compensation (weight). The computer automatically runs the standard
programmme for the two side Balancing using hammer on weights. A special
programme for other type of balancing is also possible in the machine. The size
of the weight required and the attachment point are calculated exactly and
stored by the computer.

-41-
Computerized Wheel Balancing and Wheel Alignment Workshop

5.2. Service Capacity

1. Wheel Balancing 3,000 Vehicles
2. Wheel Alignment 15,000 Wheels
3. Other Misc. Repairs of Vehicles L.S.

5.3. Motive Power 2 KW

5.4. Pollution Control

No Pollution Control device is required as this Activity in non-polluting.

6. FINANCIAL ASPECT
6.1. Fixed Capital
Land & Building:
Built up area of 200 sq. mtrs. on rental basis as:
For Office, store, etc. - 50 Sq. mtrs.
For Workshed, Pit and open space for vehicles parking etc. - 150 sq. mtrs.

6.1.1. Machinery and Equipments

S.N. Description Qty. Value (Rs.)
1 Computerized wheel balancing machine for all type 1 1,70,000
of wheels upto 65 Kg. Weight and maximum 850 mm
of external wheel diameter with all standard
accessories
2 Computerized PC based wheel Aligner with option 1 4,00,000
of CCD Sensors (Equipped with 14 colour monitor,
key board, CD, 4 Sensors, printer, and other standard
accessories
3 Tool Kit 2 sets 10,000
4 Vehicle Lifting Jacks 2 Nos. 8,000
Total 5,88,000
5 Office furniture & Misc. equipments L.S. 30,000
6 Electrification and installation @ 10% L.S. 58,800
7 Construction of 5/1/2 feet deep Pit for vehicle L.S. 25,000
Inspection and precision wheel alignment Jobs
Preoperative expenses 30,000
Total 7,31,800

-42-
 Computerized Wheel Balancing and Wheel Alignment Workshop

6.2. Working Capital (per month)

6.2.1. Personnel
S. No. Designation No Salary (Rs.) Total (Rs.)
1 Supervisor 1 12,000 12,000
2 Skilled Workers 1 8,120 8,120
3 Semi-Skilled Workers 1 7,360 7,360
4 Sweeper/peon 1 4,000 4,000
Perquisites @ 20% of salary 6,296
Total 37,776

6.2.2. Utilities
1. Power Rs. 5,000
2. Water Rs. 1,000
Total Rs. 6,000

6.2.3. Other Contingent Expenses

S. No. Description Value (Rs.)
1. Rent 15,000
2. Postage & Stationery 1,000
3. Transportation 1,000
4. Telephone 1,000
5. Repair & Maintenance 2,000
6. Miscellaneous 2,000
7. Insurance 500
Total 22,500

6.2.4. Total Recurring Expenditure (per month) Rs. 66,276/-

6.3. Total Capital Investment

Fixed Capital Rs. 7,31,800
Working Capital (for 3 months) Rs. 1,98,828
Total Rs. 9,30,628/-

Machinery Utilization
All the machinery will be fully utilized. These wont be any idle capacity.

-43-
Computerized Wheel Balancing and Wheel Alignment Workshop

7. FINANCIAL ANALYSIS
7.1. Cost of Operation (per annum)
S.No. Description Amount (Rs.)
1 Total Recurring Cost per year 7,95,312
2 Depreciation on Machinery & Equipment @ 10% 58,800
3 Depreciation on Office Equipment & Furniture @ 20% 6,000
4 Interest on Total Investment @ 14% 1,30,288
Total 9,90,400

7.2. Turnover (per annum)

Services Qty. Rate (Rs.) Value (Rs.)
Computerized wheel Alignment 10 vehicle per 15,000 30 4,50,000
day (5 wheel per vehicle) X 300 days
Computerized wheel Balancing 10 vehicle per 3,000 300 9,00,000
day X 300 days per year
Charges for Misc. vehicle repairs L.S 80,000
Total 14,30,000

7.3. Net Profit (per annum)

= Turnover Cost of Operation
= Rs. 4,39,600/-

7.4. Net Profit Ratio

Net profit per year
= X 100
Turnover per year

= 30.7 %

7.5. Rate of Return

Net profit per year
= X 100
Total Capital Investment

= 47.2 %

-44-
 Computerized Wheel Balancing and Wheel Alignment Workshop

7.6. Break-even Point

Fixed Cost (Per Annum) (Rs.)

Rent 1,80,000

Total Depreciation 64,800

Total Interest 1,30,288

Insurances 6,000

40% of salary and wages 1,81,325

40% of other Contingent expenses
33,600
(Excluding rent & Insurance)
Total 5,96,013

B.E.P
Fixed Cost
= X 100
Fixed Cost + Net Profit

= 57.6 %

Address of Machinery & Equipment Suppliers

1. M/s. Vikas M/s. Tools,

Rajkamal Raod, Rajaji Nagar,
Bangalore

2. M/s. Vijay Machine Tools,

Rajkot

3. M/s. Madhu Engineer,

Nagadi Main Road,
Kadavri, Bangalore

-45-