BUSINESS - PLAN
of the organization of the production of natural tile on the basis of the line "CST"

In the given project the organization of the production of natural tile on the basis of the line "CST" in Orsk is analyzed. The given calculation is approximate. The project is realized on a new-organized enterprise.

1. THE CONDITIONS OF CALCULATION.

As binding material cement M-400 is used, as filler - sand. To get dyed products pigment is added into the mixture.

The main equipment is the line "CST" installed in closed, heated premises. The industrial premises are rented. The calculation is done for the variant in which heat-and-humid processing is absent. Initial materials for articles are delivered by transport. The calculated month fund of working time at two-shift work is 25 days. The nominal productivity of the line is 100 grooved tiles per hour. Prices, used in the calculation, are valid for 01. 05. 2005 in the Orenburg region.

Thus, for one 8-hour shift 800 grooved tiles are produced; for a day - 1600 items; for a month - 40000 items. In 1 m² there are 15 grooved tiles. Respectively, 40000/15=2660 m²

2. MATERIALS AND DELIVERY

2.1. Cement
For the production of the mixture cement M-400 is used. Retail price of 50-kilo sack is 65 rubles. The cost of 1 kilo of cement: 65 rub/50kg=1rub. 30 kopecks. To produce 1 m² of tile you need approximately 11,5 kg of cement what is equal to 15 rub. for 1 m²

2.2. Sand
For the production of the mixture the sand the cost of which is 1500 rub. for 10-ton KAMaz is used. The cost of 1 kilo of sand is 1500 rub/10000kg=15 kop. To produce 1 m² of tile you need approximately 23 kg of sand what is equal to 3 rub. 45 kop for 1 m²

2.3. Pigment
Pigment is added into the mixture. The cost of the most expensive pigment Bayer (produced in Germany) is 66 rubles per kilo. To dye 1 m² of tile 400 g of pigment is wanted what is equal to 26 rub 40 kop.

2.4. Dye
The usage of dye is not necessary. But as it is practiced among the leading producers of tile in the west, we shall also include the cost of dye in the calculation. Let's take the most expensive dye Bayer (can be bought at our firm). The cost of 1 kilo is 52 rubles. To dye 1 m² of tile 0,2 kg is wanted what is equal to 10 rub 40 kop.

2.5. Used electric energy per day at two-shift work

The plant CST - P 4 kWt х 16 h = 64 kWt The plant CST - K 0,5 kWt х 4 h = 2 kWt Solution mixer 1 kWt х 6 h = 6 kWt Total 72 kWt per day

The approximate tariff is 1,5 rub per 1 kWt
Total: expenses for electric energy are 72 x 1,5 = 108 rub to produce 1600 tiles (106 m²). Respectively, the expenses of electric energy for production of 1 m² are 108/106=1 rub 1 kop

3. EXPENSES FOR EXPLOITATION OF INDUSTRIAL PREMISES AND SALARY

3.1. Wages
3-4 people per shift may serve the production. As a model we'll take the maximum quantity - 4 people per shift. The wages of each person are 5000 rubles per month. Respectively, 4people x 2 shifts x 5000 rubles = 40 000 rubles per month.

3.2. Rent
The rent of the industrial premises with the area of 120 m² is equal to 15 000 rubles a month.

3.3. Water supply
Expenses for cold water supply is not more than 1000 rubles a month.

3.4. Internal lighting
Internal lighting includes 4 lamps DRL with the power 0,25 kWt. The total expenses for internal lighting are 4 x 0,25 x 16 hours x 1,5 rubles = 24 rubles. Every month you'll have to pay 24 rub x 25 days = 600 rub

4. THE TOTAL CALCULATION

Summing it all up, the cost price (only materials) of 1 m² of tile is:
15 rub (cement) + 3rub 45 kop (sand) + 26 rub 40 kop (pigment) + 10 rub 40 kop (dye) + 1rub 1 kop (electric energy) = 56 rub 35 kop

The approximate selling price of 1 m² of tile is not less than 150 rub (metal tile, for example, is 170 rub per 1 m², tile Braas costs from 280 rub per 1 m²).

Profit from sale (not final) per month:
150 rub - 56 rub 35 kop = 93 rub 65 kop (without taking into consideration additional expenditure) from 1 m²
2660 m² per month x 93 rub 65 kop = 249 109 rub.

The additional expenditure per month is equal to:
40 000 (wages) + 15 000 (rent) + 1000 (water) + 600 (lighting) = 56 600 rub

Net profit per month is equal to:
249 109 rub - 56 600 rub = 192 509 rub

As you can see from the calculation, the biggest part of the cost price is taken by a dying pigment. To make it cheaper we use pigments produced in Russia the cost of which is 6 rub per kilo, what is 10 times cheaper than pigment Bayer.

ADVICE ON ADVERTISEMENT

1. If you want potential clients to appreciate the beauty of the roof under such tile, make a demo roof in the yard of your company building. The model of the roof, which is situated in our firm, you can see here.

2. Sell the tile for its cost price to the first clients. It's preferable for these clients to live in different districts of a town. Looking at these beautiful roofs more and more people would like to cover their roofs with the same tile.