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1. INTRODUCTION
This scheme covers grey cast iron castings of Heavy Mass upto 1.5 MT.
For Example:
1. Roller casting for sugar mills
2. Rack and gear boxes for General Engg. works
3. Ingot moulds for Mini-Steel Plants
2. MARKET POTENTIAL
The market potential of heavy grey iron castings is good and expected to be
bright in future. These castings are required by Sugar Mills, General Engineering
Works and Mini-Steel Plants. The demand for such castings is increasing
continuously due to rapid industrialization.
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Heavy Casting of Grey Cast Iron
4. IMPLEMENTATION SCHEDULE
The implementation of the project includes various jobs/exercises such as
procurement of technical knowhow, transfer of technology, market surveys and tie-
ups, preparation of project report, selection of site, registration, financing of project,
procurement of machinery and raw materials etc., recruitment of staff,
erection/commissioning of machines, trial production and commercial production
etc. In order to efficiently and successfully implement the project in the shortest
period, the slack period is curtailed to minimum possible and as far as possible
simultaneous exercises are carried out. In view of above, a CPM-PERT chart has
been illustrated below, according to which a minimum period of 227 days is
involved in finally starting the project on commercial basis. By the following this
process a time period of 82 days can be saved.
Details of Activities
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Metallurgy Division
C.P.M.
Activity Days Activity Days Particulars of Activity
12 15 12 15 Procurement of Tech. knowhow/
transfer of technology
34 15 34 15 Market Survey, tie up and obtaining
quotations
45 7 23 7 Selection of site
56 70 45 7 Preparation of Project report
67 45 56 70 Registration and financing
7 10 30 67 45 Placement of orders for machinery and
receipt of machines
10 11 30 68 30 Recruitment of staff and training
11 12 15 69 30 Addition/Alteration in rental
premises
8 10 15 Procurement of raw material/bought
out components
7 10 30 Erection, electrification and
commissioning
10 11 30 Trial Production
11 12 15 Commercial Production
Total 227 309
5. TECHNICAL ASPECTS
5.1. Process of Manufacturing
Grey cast Iron castings are produced by melting pig iron and C.I. scrap in
cupola furnace. The molten metal is poured in dry sand moulds to avoid the mould
dilution. Cores are made of silicon sands dried and coated with graphite paste.
Graphite paste is prepared from graphite powder and Bentonite mixed in water. The
cores are dried in coal fired chamber properly before use in mould. Molten metal is
poured in moulds cavity with the help of a ladle. Castings are taken out of the
mould after getting cooled. After breaking the runner and risers castings are fettled
properly.
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Heavy Casting of Grey Cast Iron
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Metallurgy Division
6. FINANCIAL ASPECT
6.1. Fixed Capital
Land & Building: 600 m2 on rent @ Rs. 40 per m2 = Rs. 24,000/- per month
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Heavy Casting of Grey Cast Iron
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Metallurgy Division
6.2.3. Utilities
Power 10,000 kWH @ Rs. 9/- per kWH Rs. 90,000
Water Rs. 3,000
Total Rs. 93,000
Machinery Utilisation
It is expected that during the first year machine utilisation will be 70% and
during second year 85% and 100% in subsequent years.
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Heavy Casting of Grey Cast Iron
7. FINANCIAL ANALYSIS
7.1. Cost of Production (per annum)
S.No. Description Amount (Rs.)
1 Total Recurring Cost 5,92,18,200
2 Depreciation on Machinery & Equipment @ 10% 1,75,500
3 Depreciation on Furnace @ 20% 1,40,000
4 Depreciation on Jigs, Fixtures and Dies @ 25% 1,00,000
5 Depreciation on Office Equipment & Furniture @ 20% 30,000
6 Interest on Total Investment @ 14% 25,90,707
Total 6,22,54,407
Total 7,05,00,000
= 11.70 %
= 44.56 %
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Metallurgy Division
B.E.P
Fixed Cost
= X 100
Fixed Cost + Net Profit
= 39.55%
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Heavy Casting of Grey Cast Iron
7. Open Market
For C.I. Scrap
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