Management

Management Accounting

Project
On
Ahmed Handicrafts Exports
[Moradabad Handicrafts]
Handicrafts]

Final Report

Submitted by
Group 11
 Table of Contents
HISTORY................................................................................................................................................................. 3
OPERATIONS .......................................................................................................................................................... 3
BRASSWARE MANUFACTURING PROCESS FLOW ................................................................................................... 4
1. MOULD MAKING...................................................................................................................................................4
2. MELTING .............................................................................................................................................................4
3. CASTING ..............................................................................................................................................................5
4. SCRAPING ............................................................................................................................................................5
5. ENGRAVING..........................................................................................................................................................5
6. POLISHING ...........................................................................................................................................................5
PLANNED CONTRIBUTION ...................................................................................................................................... 6
EXISTING COST SHEET ............................................................................................................................................ 8
CRITICAL ANALYSIS OF EXISTING COST SHEET ........................................................................................................ 8
PRODUCTS ............................................................................................................................................................. 9
ORGANIZATIONAL CHART .................................................................................................................................... 10
MODIFICATION AFTER FIRST INTERACTION ......................................................................................................... 10
CONCLUSION ....................................................................................................................................................... 10
Ahmed Handicrafts Exports
A Moradabad Brassware Manufacturing Company

History
Ahmed Handicraft Exports enjoys a distinct reputation in the field of handicrafts. Established in
the year 2001, the company is located in a city called 'The Brass City - Peetal Nagri. As the name
suggests, the city from the very past is engaged in the business of making Metal Art ware, Brass
Handicrafts, Home Furnishings Items.

Ahmed Handicraft Exports is engaged in preserving the tradition and adding new dimensions to
existing trade. It exports all these to almost every nook & corner of the world.

Operations
Operations
Ahmed Handicraft Exports has held high the flag of Indian handicrafts with its exotic brass
handicrafts, wholesale garden accessories, garden ornaments, copper handicrafts, iron
handicrafts, aluminum handicrafts, wood handicrafts and glass handicrafts. It designs and
fabricates beautiful art-wares having aesthetic sense.

The products are designed keeping in mind the customer requirements and we work on meeting
and exceeding the customer expectations.
 Ahmed Handicrafts Export plant, housed in a sprawling 25,000 sq. ft. is fitted with state-of-the-
art technology and infrastructure like Two powder coating plants 10 polishing machines and iron
ware manufacturing unit in 4 laith machines, 4 spring laith machine, electronic press machine,
20 hand press machine, 3 generating sets, 10 electronic welding machines, wire cutting
machine, threading machine, Drill machine much more.

It has employed a work force of around 50 people to ensure steady and uninterrupted
production.

Brassware Manufacturing
Manufacturing Process Flow

1. Mould Making
The first step is to make the mould or ‘master-piece’ from which multiple products would be
replicated (cast). These are usually made of wax, as it is soft and easy to work with. Sometimes
wood is also used. This ‘master-copy’ is always created in two (or more) detachable halves to
make sand casting convenient.

2. Melting
Brass is prepared by melting scrap-metal to approximately 2000 Degrees Celsius coal-fired
furnace. The raw materials are a mix of many metals namely copper, zinc, lead, etc. in a
specified ratio. A flux is also added to remove the impurities. These are molten in a huge
 container for about twelve hours to produce 350 Kilograms of brass at one go. The molten metal
is left to cool on basic iron moulds to form strips that are then sent to the casting craftsmen.

3. Casting
Sand casting is the traditional method of making brass ware. Sand is used in the two halves of
the mould box to cast the metal which is prepared by packing sand (locally called ‘masala’)
around the ‘master-copy’ tightly. The chemical binder in the sand aids in holding the shape of
the mould after which it is removed and molten metal poured in its cavity. After being allowed
to cool for few minutes, the cast metal is removed from the mould box. The sand and the
‘gating’ (path way made in the mould for directing the flow of molten metal into the cavity) are
broken from the cast using a hammer. These are re-used in the next casting.

4. Scraping
The cast metal is mounted on a cylindrical wooden block, which in turn is attached to the
headstock of the lathe machine. Various chisels and files are used to scrap the spinning cast and
smoothen its surface of any irregularities. Sometimes when the product is made in parts, it is
first welded together and then sent for scraping and polishing. Metal shavings are re-used in the
next melting.

5. Engraving
Engraving is the most refined and artistic of all the processes. The design that has to be
engraved is first sketched on paper and then scaled-up according to the size of the product.
Measurement is an important aspect to make the pattern look harmonious and lyrical. These
are mainly inspired from different forms of nature like trees, flowers, birds and animals. The
geometric ones have their influence from the Mughal architecture.
First, an outline of whole design is done with a fine engraving tool hammered with a wooden
block. After that, broader tools are used to engrave the background and give depth to the
pattern. These are often filled with colorful lac or enamel.

6. Polishing
Polishing mainly includes cleaning the brass ware with a soft scrub and then buffing it on the
machine for golden sheen.
 Brassware Manufacturing Process

Planned Contribution
Having visited the city of brass and discussed the process of brassware manufacturing, it is concluded
that the manufacturing cost can be optimized by saving the fuel i.e. by making the manufacturing
process energy efficient.

Presently brassware craft practice and artisans involved in this practice are encountering certain
challenges and crisis. Due to increase in prices of brass and coal/coke the brassware industry also
suffered a major setback. Also because of the inadequacy of basic infrastructure like electricity, water,
health and sanitation and impoverished condition of the artisan the brassware industry is already in
crisis.

Mostly coke fired pit furnaces are used at different brass cluster in India for brass melting due to low
construction and maintenance cost, easy operation compared to other furnace. The crucible is
surrounded by coke which in turn is surrounded by an open furnace build by bricks. The pit furnace is
prepared by the unit owners as per their traditional process. The simple schematic diagram of existing
coke fired pit furnace is shown in diagram below.
 Coke Fired Pit Furnace

The developed energy efficient brass melting furnace is environmentally friendly, as it reduces pollution
in the atmosphere as compared to traditional brass melting furnace. The furnace is energy efficient as
around 20 to 40% less coke is consumed for melting as compared to traditional furnace. The melting
time is reduced by 10 to 40 % as compared to that needed in traditional furnace.

Energy Efficient Brass Melting Furnace

Existing Cost Sheet
S.N. Description of Finish Cost

1 Lacquering 120.00 / Sq. Mtr.

2 Powder Coating 90.00 / Sq. Mtr.

17.00 / Hour only for providing

3 Polishing machine

4 Only for Phosphating 22.00 / Sq. Mtr.

5 Nickel Plating 210.00 / Sq. Mtr. (Up to 5 Microns)

483.70 / Sq. Mtr. / Micron (Cost of

6 Silver Plating Silver (Rs. 20,000.00 per K.G.)

7 Sand Blasting 150.00 / Sq. Mtr.

1060.00 / Lts. of compound used + 2%

8 Anti Tarnish Incidental charges.

9 Copper Plating 120.00 / Sq. Mtr. (upto 2 Microns)

10 Brass Plating 275.00 / Sq. Mtrs.

11 Chrome Plating 275.00 / Sq. Mtrs.

0.52 / Sq. Cms. / 0.1 Micron, when

gold Price is Rs. 1200.00 / gram. The
cost of gold plating will be considered
for 0.1 Micron and multiples of 0.1
12 Gold Plating microns only.

Critical Analysis of Existing Cost Sheet

There are plating processes like copper plating, gold plating, silver plating or nickel plating while
manufacturing brassware. The cost of coating/plating the brassware depends upon the targeted
thickness in microns.

The more we keep the thickness of plating, the more will be the cost.
 However, the thickness can be kept at an optimal level. There is no effect on quality of the
product, if thickness of plating is kept at lowest possible value as end product is still within
quality limits. Thus one can deduce from the existing cost sheet of various processes in
manufacturing brassware, that the cost of manufacturing can be controlled by simple changes in
the thickness of plating/coating.

Products

Candle Stands

Iron ware with some specialties in tableware’s

Metal Planters in unique finish

Glass & metal lamp and hurricanes

Glass & metal flower vases

Photo Frames

Lighting Accessories

Garden Accessories

Metal vegetable and fruit baskets

Metal statues with persistent finish

Walking sticks made of carved wood and metal

Gardening Tool/Furniture
Organizational Chart
Business
Owner

Sales and
Operations Accounts
Marketing

Merchandisers Supervisors

Labourers Artisans

Modification
odification after first interaction

The costs for melting, moulding and casting have been separated out.

Packing costs have been included

Engraving processes have been separated out.

Different tools used for engraving are Hammer, pointed iron tools of various sizes for engraving.

Employee’s benefits like bonus, medical cost etc have been added

Conclusion

After including certain explicit costs like land, Owner's salary, phone expenses, the gross margin
is dipped down

In order to increase the margin further, a change is required in the design of the furnace which
can reduce coal consumption. It may result in the increased margins.