I.

Introduction

A Nut is a type of fastener with a threaded hole. Nuts are almost always
used in conjunction with a mating bolt to fasten multiple parts together. While a
Bolt is a form of threaded fastener with an external male thread. The purpose
of a bolt is to clamp two or more parts together. The clamping load stretches or
elongates the bolt and remains as preload. When tightening, bolt head should
be held stationary – nut should turn.

Fasteners can be divided in 2 main categories:

 Non-permanent fastener
 Permanent fastener

Non-permanent fasteners can (they enable parts to be assembled and

disassembled repeatedly) can further be divided into two groups:

 General fasteners – such as keys, pins, retaining rings, etc.

 Threaded fasteners – such as bolts, screws, studs, setscrews,
etc. They are the most widely used type of non-permanent
fasteners since they can easily be removed then reused.

On the other hand, rivets are considered to be permanent fasteners

since removing rivets will destroy them.

Threaded Fasteners

Threaded fasteners are the principal devices used for assembling

components and they are usually grouped into three main categories.

 Bolts – a bolt has a head on one end and threads on the other
end and it is paired with a nut.
 Screws – are used to join two mating parts together and similar
to bolts, they have head on one end and threads on the other
end.
o Screws are sometimes divided into two sub-categories;
Cap Screw and Machine Screws. Machine screws are
generally smaller in size than cap screws and they are
used for screwing into thin materials.

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  Studs – a stud is a rod that is threaded on both ends and joins
two mating parts. A nut may be used on one end.

The term bolt and screw are sometimes used interchangeably and they
can refer to the same element. The difference between a bolt and a screw is
that a bolt is usually intended to be used in conjunction with a nut where it will
be tightened or loosened using the nut, while a screw is usually intended to be
mated with an internally threaded hole and the screw head is used for tightening
or loosening.

External and Internal Threads

 External Thread – external threads are on the outside of a member. A

chamfer on the end of the screw thread makes it easier to engage it into
a hole or a nut. An external thread is usually cut using a die or a lathe.
 Internal Thread – internal threads are on the inside of a member.
Usually, threaded holes have a chamfer on the side form which the
screw will enter to make its engagement easier. An internal thread is
usually cut using a tap.

Nuts

A nut is the counterpart of a bolt. Bolts and nuts are used together to
clamp two or more parts having unthreaded holes together. While the most
commonly used type of nuts are the regular hexagonal nuts. There are different
types of nuts where each is more suitable for a different type of applications.

Common Types of Nuts

 Hexagon
 Jam
 Square
 Slotted
 Castle

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 II. Product Description

Bolt is cylindrical piece of metal that fasten objects together. It is a piece

of steel forged at one end to make hexagonal, square or round head and the
shank fully or partially threaded at the other end. Nut is hexagonal or square
piece with a threaded hole at the center. Bolts and nuts can be zinc or cadmium
plating to resist corrosion. Bolt and nut are used to fasten together loose parts
mainly in industries and workshops.

Basic Fastener Terminology:

Major diameter – this is the diameter of an imaginary cylinder which just touches
the roots of an external thread, or the crests of an internal thread.

Root diameter – identical to minor diameter.

Pitch diameter – it is the effective diameter of the thread which passes through
the thread in such a position that the widths of the thread ridges and thread
grooves are equal and lies approximately half way between the major and minor
diameters.

Washer face – a washer face is a circular boss under the head of the fastener,
providing a bearing surface. Applicable for a bolt or nut.

Pitch – the distance from a point on the screw thread to a corresponding point
on the adjacent thread measured parallel to its axis in the same axial plane and
on the same side of the axis.

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 Types of Nuts and Bolts

There are many different types of bolts and nuts where each is suitable
for different types of applications.

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 III. Process and Schematic Diagram

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 Nut and Bolt Manufacturing Process:

1. Wire – Uncoiled, straightened and cut to length.

2. Cold Forging – moulding the steel into the right shape at room
temperature.

3. Bolt Head – progressively formed by forcing the steel into various

dies at high pressure.

4. Threading – threads are formed by rolling or cutting.

5. Heat Treatment – the bolt is exposed to extreme heat to harden

steel.

6. Surface Treatment – depends on the application. Zinc-plating is

common to increase corrosion resistance.

7. Packing/Stocking – after quality control to ensure uniformity and

consistency, the bolts are packaged.

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 IV. Machineries and Utilities

Double Stroke Solid Die Cold Head Forging

Machine – suitable for bolt diameter 6 mm to
18 mm and length 20 mm to 150 mm, with 15
HP electric motor.

Head Trimming Machine – up to 18 mm

diameter bolt x 150 mm length with 10 HP
electric motor.

Thread Rolling Machine – suitable for up to

18 mm diameter bolt x length 150 mm with 15
HP electric motor.

Bull Block Wire Drawing Machine – is a

metalworking process used to reduce the
cross-section of a wire by pulling the wire
through a single, or series of drawing dies.

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 Wire Pointing Machine – these machines are
used for the sharpening of nibs of the wires
which have low and high carbon content as
well as copper wires.

Steel Polishing Barrel – is a machine for

smoothing and polishing a rough surface on
relatively small parts.

Automatic Nut forming plant - five station

capacity 18 mm diameter with 25 HP motor,
lubricant and coolant pump.

Nut Tapping Machine – is a machine used to

create screw threads, which is called
threading. A tap is used to cut or form the
female portion of the mating pair. A die is used
to cut or form the male o portion of the mating
pair.

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 Semi Muffle Oil Fired Furnace – is a device
used for high-temperature heating

Tempering Furnace - H.T. air circulated type

electrically heated temperature up to 500°C, 3 KW
rating.

Die, Tools Gauge and Measuring

Instruments – are devices for
measuring a physical quantity.

Utilities

1. Electricity and Water

2. Furnace Oil
3. Lubricant Oil
4. Etc.

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 V. Current Trends

Cold Forming (cold extrusion)

In this procedure, the fastener is formed, usually in multistage

processes, by pressure forging, cold extrusion and reducing, or a combination
of these procedures.

The choice of the suitable forming machine depends on the size of the
fastener and on the degree of forming. The greater the degree of forming, the
more forming stages are required.

Advantages of cold forming:

 Optimal use of material

 Very high output
 High dimensional accuracy and surface quality
 Increase of strength properties through strain hardening
 Run of the chamfers in press parts in accordance with the load

Hot Forming

With this procedure, the input material (usually bars) is heated wholly or
partially to forging temperature. This heating up enables even complicated
geometries or very high degrees of forming to be realized.

A typical feature for a hot-formed component is the raw surface structure.

Strain hardening is not carried out during hot forming.

Advantages of hot forming:

 Enables production of complicated geometries

 Low production runs
 Large diameters and lengths

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 Machining

This production procedure is used either if the production run is not very
large or if the part geometry cannot be complied with in cold or hot forming
procedures because of sharp edges, small radiuses or even nominal sizes.

Thread Production

In this procedure, the screw is rolled between two rolling dies, one of
which is fixed and the other running, and this created the thread.

With this type of thread production, it is possible to fit several hundred

screws per minute with a thread. The thread is usually applied before hardening
and tempering.

Plunge Cutting

Tool rolls that are driven at the same speed rotate in the same direction.
The workpiece rotates without being axially displaced. This method can be used
to make threads with very high pitch accuracy.

Continuous method

The thread pitch is generated by inclining the roller axes by the pitch
angle. The workpiece is given an axial thrust and moves by one thread pitch in
an axial direction, with a full rotation. Overlength threads can be made in this
way.

Thread cutting

In this procedure, the thread is made by means of a tap or a screw stock.

With screws, this procedure is mainly used for very low production runs or with
machined parts as well.

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 Hardening

The screw is heated to a specific temperature among other things in

dependence on its carbon content and kept at this temperature for a long
period. This changes the microstructure. A great increase in hardness is
achieved through the subsequent quenching (water, oil, etc.)

Annealing

The glass-hard and therefore brittle material cannot be used in practice

in this condition. The material must be heated up again to a minimum
temperature specified in the standard, in order to reduce the distortions in the
microstructure. This measure reduces the hardness that was reached
beforehand, but greater ductility is achieved.

Case Hardening
This procedure is used among other things for tapping screws, thread
grooving and self-drilling screws. In this case, very hard surfaces are decisive,
so that these screws are able to make their own thread automatically. The
screw core, in contrast, is soft.

Stress relief annealing

The strain hardening created on cold forming can be reversed by stress
relief annealing heating to approximately 600°C and maintaining this
temperature for a long period.

Tempering
Tempering is the thermal treatment of high strength components with the
aim of minimizing the risk of hydrogen embrittlement.

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 VI. Economic Analysis
Fixed Capital
Land and Building Area
Covered Area (own property, not 1500 m2
purchased)

Equipment Description Qty. Total (Php)

Double Stroke Solid Die 1 511,000.00
Cold Head Forging
Machine
Head Trimming Machine 1 343,100.00
Thread Rolling Machine 1 306,600.00
Bull Block Wire Drawing 1 173,000.00
Machine
Wire Pointing Machine 1 25,950.00
Steel Polishing Barrel 1 77,850.00
Automatic Nut forming 4 912,500.00
plant
Nut Tapping Machine 4 160,600.00
Semi Muffle Oil Fired 1 113,150.00
Furnace
Tempering Furnace 1 54,750.00
Die, Tools Gauge and 109,500.00
Measuring Instruments
Electrification and 251,850.00
installation
Office equipment and 43,250.00
furnitures

Total Php 3,083,100.00

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Working Capital (per month)

Personnel No. Salary (Php) Total (Php)

Manager 1 30,000.00 30,000.00
Office 2 28,000.00 56,000.00
Assistant/clerk
Skilled worker 10 25,000.00 250,000.00
Semi-skilled 7 19,000.00 133,000.00
worker
Un-skilled worker 4 15,000.00 60,000.00
Watchman-cum- 4 12,000.00 48,000.00
peon

Total Php 577,000.00

Raw Material (indigenous)

Particulars Qty. Amount (Php)

M.S. Wire/rod 6mm- 15 Tons 197,100.00
18mm dia @Php
13,140/tons
Hexagonal M.S. rod 10 Tons 135,050.00
6mm-18mm dia @Php
13,505/tons
Packing/Polishing 75,000.00
materials and
consumables

Total Php 407,150.00

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 Utilities Php
Electricity and Water, 30,000 kWh @ 360,000.00
Php 12/kWh
Furnace Oil, 1500 L @60/L 90,000.00
Lubricant Oil, 250 L @350/L 87,500.00

Total Php 537,500.00

Other Contingent Expenses Php

Maintenance and repair 5,000.00
Postage, stationery, and phone 4,500.00
Packing and transport 30,000.00
Insurance 10,000.00
Miscellaneous expenses 7,500.00

Total Php 57,000.00

Total Recurring Expenditure:

= (Personnel + Raw Materials + Utilities + Other Contingent Expenses)

= 577,000 + 407,150 + 537,500 + 57,000 = Php 1,578,650.00

Total Working Capital for 12 months = Php 18,943,800.00

Total Capital Investment

Fixed Capital Php 3,083,100.00

Working Capital (for 12 months) Php 18,943,800.00

Total Php 22,026,900.00

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Cost of Production (per annum)

Depreciation on machines and equipment’s @ 10% within the 10th year

Cost Basis (Php) Salvage Value (Php) Depreciated amount in

the 10th year (Php)
511,000 51,100 459,900
343,100 34,310 308,790
306,600 30,660 275,940
173,000 17,300 155,700
25,950 2,595 23,360
77,850 7,785 70,070
912,500 91,250 821,250
160,600 16,060 144,540
113,150 11,315 101,840
54,750 5,475 49,280

Total Php 2,410,670.00

Depreciation on office and equipment @ 20% - Php 482,134.00

Interest on total Capital Investment @ 16% - Php 3,524,304.00

Total – Php 6,417,108.00

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Total Sales (per annum)

Item Description Quantity Price (Php)

By sale of MS bolts @ 180 tons 3,960,000.00
Php 22/kg
By sale of MS nuts @ 120 tons 2,640,000.00
22/kg
By sale of HT bolts @ 180 tons 4,140,000.00
23/kg
By sale of HT nuts @ 120 tons 3,360,000.00
28/kg

Total Php 14,100,000.00

Profit per year: = 14,100,000 – 6,417,108 =Php 7,682,892.00

7,682,892
Net profit ratio on sale: = 14,100,000 =54.5%

7,682,892
Rate of Return: = =34.88%
22,026,900

22,026,900
Payback Period = =2.86 years
7,682,892

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Break-even point:

Fixed Cost (per annum)

1. Depreciation on machinery & equipment – Php 2,410,670.00

2. Depreciation on office equipment – Php 482,134.00
3. Interest on total investment – Php 3,524,304.00
4. 40% of salary and wages – Php 2,769,600
5. 40% of other contingent expenses – Php 273,600.00

Total = Php 3,043,200.00

3,043,200
B.E.P. = 3,043,200+7,682,892 =28.37%

Taxable Income: based on BIR Income Tax Rate Table

Manager (1) – Php 30,000 x 12 = 360,000; refer to bracket 2

So, 30,000/month (20%) = 6,000/month = 24,000/month  Net Income

Office Assistant (1) – Php 28,000 x 12 = 336,000; refer to bracket 2

So, 28,000/month (20%) = 5,600/month = 22,400/month  Net Income

Skilled Worker (1) – Php 25,000 x 12 = 300,000; refer to bracket 2

So, 25,000/month (20%) = 5,000/month = 20,000/month  Net Income

Semi-skilled worker (1) – Php 19,000 x 12 = 228,000; refer to bracket 1

No Taxable Income, so 19,000  Net Income

Un-skilled worker (1) – Php 15,000 x 12 = 180,000; refer to bracket 1

No Taxable Income, so 15,000  Net Income

Watchman-cum-peon (1) – Php 12,000 x 12 = 144,000; refer to bracket 1

No Taxable Income, so 12,000  Net Income

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Sales Taxes: VAT registered tax rate (BIR) – 12%

Total Sales Tax = Item or service cost x sales tax

= 14,100,000/12 months = 1,175,000/month x 12% = 141,000

= 1,175,000/month + 141,000 = Php 1,316,000.00  Overall Sales Tax per month

The Total Capital Investment was loaned from a bank and demands a nominal interest
rate of 6% within 5 years compounded semi-annually. The future payment is to be
determined and the annual monthly payments.

Total Capital Investment (P) = 22,026,900

r = 6%

m=2

N = 5 years

F = P(1 + i)N

= 22,026,900(1 + 0.03)5 x 2 = 29, 602, 311.7

Therefore, the future payment should be Php 29, 602, 311.7

For annual payments,

𝑖
A = F((1+𝑖)𝑁 −1)

0.03
= 29,602,311.7((1+0.03 )5 𝑥 2−1) = 2,582,224.65

Therefore, the annual payments should be Php 2,582,224.65

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 VII. Interpretation
The Nut and Bolt manufacturing has a total capital investment of Php
22,026,900.00 including the fixed capital and working capital per month.

The cost of production per annum is the expenses when using the
machine and manufacturing the product in a total of Php 6,417,108.00.

Total Sales of nuts and bolts per annum is estimated to be Php

14,100,000.00.

The profit per year is the total difference of the total sales minus the cost
of production Php 7,682,892.00.

The payback period where the capital investment can be recovered

divided by the profit per year is 2.86 years.

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 VIII. References

https://www.nord-lock.com/insights/knowledge/2018/the-making-of-bolts/

https://boltdepot.com

http://www.dcmsme.gov.in/reports/mechanical/mshightensilenutsandbolts.
pdf

https://www.wuerth-
industrie.com/web/media/en/pictures/wuerthindustrie/technikportal/dinokap
itel/Kapitel_04_DINO_techn_Teil.pdf

http://www.fastenerblackbook.com/index.php?app=fastenerterms

M.S. and High Tensile Nuts and Bolts by Small Industries Service Institute
Industrial Estate, Kokar, Ranchi

Mechanical Fasteners by Dr. Ala Hijazi

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