Computer Furniture

Product Code	276001001
Quality and Standards	As per Customer's requirement IS 71381 : 73 Hollow Rectangular MS Section IS14587 : 98 Pre-Laminated medium Density Fibre beard for table top. IS 303 : 89 for Pressed formed and ergonomically shaped seat and back. Computer Table (Overall size 900 × 600 × 750 mm) – 3600 Nos. Computer-cum-Printer Table (Overall size 1200 × 700 × 750 mm) – 2000Nos. Printer Table (Overall size 750 × 700 × 750 mm) – 3600 Nos. Computer Chair without Arms and adjustable seats, having size 725×725×950-1050mm- 8000
Production Capacity	Nos. Computer Chair with Arms and adjustable seat height size 725×725×950-1050 mm-6000 Nos. Executive Computer Chairs with Arms and adjustable seat height size 725×725×1100-1200 mm -3000 Nos. Volume : Rs. 108180000(1081 lakhs)
Uploaded on	March 2007

Introduction

Within a carved span of time, Computers have carved out a niche in the history of mankind and changed the entire gamut of human life at an overwhelming pace. Be it business, academics, defence strategy, budgeting research, engineering, medicine, space exploration, communication, travel and hospitality, utilities, or designing, Computers have established themselves as an indispensable part and so also the computer furniture. Some commonly used computer furniture are Computer Tables, Computer-cum-Printer tables, Printer Tables, Computer Chairs with or without arms, Computers Chairs with or without coaster wheel base etc.

Market Potential

The market demand for Computer furniture is increasing day by day with the increase in use of the Computers. Computer furniture has got domestic as well as export market. Long sitting hours on Computers has necessitated the use of computer furniture such as table and chair having proper dimensions and specifications. Computer tables are designed in such a way so as to accommodate Monitor, CPU, Key Board and other peripherals etc. with the optimum utilization of horizontal and vertical space. Care is also given to provide sufficient leg space, free hand movement for operating mouse, etc. Care is also taken in designing and manufacturing Computer chairs to suit the computer table. Long sitting hours on computer clubbed with improper spinal support on chair have become the major cause for backache to many Computer users. Computer furniture manufacturers are bringing out innovative changes to cope with this problem. Computer furniture is being mainly used in Offices, Computers Training Institutes, Laboratories, Schools, Colleges, and Homes.

Basis and Presumptions

• It is presumed that the unit will work for single shift of 8 hours and 300 days in a year with 75% efficiency.
• The unit will take minimum three years to achieve full capacity utilization.
• Labour wages are taken at the prevailing rates in the local market.
• The rate of interest on Fixed and Working Capital is taken at an average rate of 12% per annum.
• Entrepreneur has to raise 25% of the capital investment as margin money.
• Considering the product and usage, the project can last for more than 10 years. The repayment of term loans will be made in 5 years af ter one year moratorium.
• The unit is proposed to function in own building.
• Cost of machinery and equipment has been taken as per the rates quoted by machinery manufacturers/suppliers.

Implementation Schedule

Activity	Period
Selection of site	15 days
Preparation of Project Report	15 days
Registration with DIC	7 days
Financial arrangements with Banks	1½ months
Machinery procurement	1 month
Installation of machines	15 days
Procurement of Raw Materials	7 days
Recruitment of manpower	7 days
Trial production	15 days

Some of the above activities would be carried out simultaneously. The approximate time required to commence manufacturing would be 4-5 months.

Technical Aspects

Process of Manufacture

(I) Computer Tables: The Computer table shall be fabricated in knock-down design for easy assembly and transportation. The base frame shall be made of hollow rectangular Mild Steel Section of 50 mm × 25 mm × 1.2 mm thickness by cutting in desired sizes and welding the sections. The open edges of base frames are protected by PVC cover. Level Adjusters are mounted suitably at the bottom edges of base frame. The vertical frame for holding table top and shelf, shall be made out of 25 mm × 25 mm × 1.2 mm thick hollow MS Square Section. The space between vertical frames shall be covered by 1 mm thick steel CRC Sheet. All steel sections shall be protected by powder coated paint after following proper pretreatment. The table top and shelf shall be made of pre-laminated medium density fibre board of 18 mm thickness of interior grade having teak/gray/oak or any other shades specified by the customer. The edges of table top, shelf etc., all shall be rounded or tapered.

Printer Table does not have any drawer/shelf etc., whereas the computer table shall have a suitable drawer for key board made of 18 mm of one side prelaminated medium density board. Below the drawer, the provision is made for sliding board of 9 mm thickness and width 300 mm which can be taken out on either side upto approximate 225 mm for placing the mouse and pad. The table shall also be made with the provision of lockable drawer adjacent to the Key Board drawer, of appropriate size. One shelf of 18 mm of one side prelaminated MDF having a gap of 450 mm from the drawer shall also be provided for holding CPU, UPS, etc.

Computer-cum- printer table shall also have a Key Board drawer/shelf, sliding board (for keeping the mouse and pad), and a lockable drawer. Two shelves are also made for keeping CPU, UPS and stationery etc. A slot on table top is made for smooth passage of computer stationery. MS Flat to support the seat and back rest. The side support shall be made of 50 × 6 mm MS Flat welded to main frame. The arms shall be supported on the side frames having flat of not less than 30 × 6 mm MS Section welded to the side frame. The PUF and coinsed rubber sheet of seat and back rest shall be covered by tapestry/fabric by stitching, and with the help of adhesive and nails. Fabric are also bought out from market which are available in different shades like Coffee Brown/Navy Blue/Light Brown/Grey, etc., and used as per the choice of customer and availability of stock.

The PUF arms for the computer chairs are available in plenty of designs in the market and shall be fitted according to customers orders.

(II) Computer Chairs: The Computer chair shall be revolving type fabricated in knock–down design for easy assembly and transportation, of 12 mm thick ply, pressed formed and ergonomically shaped seat and back which are easily available in the market in standard sizes. These seat and backrest shall be covered with mechanically formed P

UF 50 mm thick with an underneath coirised rubber sheet of 12 mm thick. The PUF and coirised rubber sheet are also bought out from market and manually cut to desired sizes of seat and back rest. Then the seat will be fixed to synchro tilt mechanism which is fabricated in the unit by cutting, bending and welding etc. Five pronged base of MS sheet, 2.5 mm thick duly powder coated is supported on strong ABS Cylindrical turning twin type roller 50 mm dia. The main supporting system for chairs shall be fabricated out of 50 × 8 mm.

Quality Control and Standards

• The Hollow Rectangular MS Section used for manufacturing of Computer Table shall conform to IS 71381 : 73. The prelaminated medium density fibre board for table top shall conform to IS 14587 : 98.
• Pressed formed and ergonomically shaped seat and back shall be used and conform to IS 303 : 89 having BWR AA type ply.
• The fabric for chair shall be used as per customers requirements but in this project report, the calculation is based upon the fabric of standard quality with following specifications

Weight of fabric	250 gms/Sq. metre nominal
Construction	Wrap 140 + 5%, Weft 120 + 5%
Breaking strength	5 + 20 cm between grips
Weft	130 (Min)
Wrap	150 (Min.)
Material	Polyster
Count of yarn	Both Warp and Weft 2/14

All sharp edges should be removed and welding joints must be sound and strong. Coaster wheel movement of chair should be easy. Backrest movement should be noiseless. Computer table key board slide movement should be ease in operation. Table joints should be rigid.

Production Capacity (per annum)

1. Computer Tables

(i) Computer table (Overall size 900 × 600 × 750 mm) – 3600 Nos.

(ii) Computer-cum-Printer Table - Overall Size 1200 × 700 × 750 mm – 2000 Nos.

(iii) Printer Table (Overall size 750 × 700 × 750 mm) – 3600 Nos.

2. Computer Chairs

(i) Computer Chair without Arms and adjustable seat having size 725 × 725 × 950 - 1050 mm – 8000 Nos.

(ii) Computer Chairs with Arms and adjustable seat Height size 725 × 725 × 950 - 1050 mm.– 6000 Nos.

(iii) Executive Computer Chairs with Arms and adjustable seat height of size 725 × 725 × 1100 - 1200 mm, - 3000 Nos.

Motive Power

15 H.P.

Pollution Control

Noise Pollution created by machines should be controlled within limits.

Energy Conservation

Shunt capacitors should be provided to control power factor. As electricity is used as a supply of energy in the unit, hence for better results efficient motor should be used. Tube lights, fans, etc., should be kept off as and when not required.

Financial Aspects

Fixed Capital

(i) Land and Building	Amount (In Rs.)
(i) Land 450 sq. mtr. @ Rs. 3500 per sq. mtr including registration	1575000
(ii) Cost of land development, fencing, approach road, inside roads, land scaping, drainage etc. @ Rs. 1000 per sq. mtr.	450000
(iii) Total built-up area 425 sq. mtrs. as follows
Administrative building 75 sq. mtrs. construction cost @ Rs. 7,500 per sq. m	562500
Factory shed 300 sq. mtrs. construction cost @ Rs.5000 per sq. mtr.	1500000
Stores, staff canteen etc. 50 sq. mtrs. @ Rs. 6,000 per sq. mtr.	300000
Water System (including Bore Well + over head tank etc)	500000
Total civil cost= cost of land + building	4887500

(ii) Machinery and Equipment

Description	Qty.	Amount (In Rs.)
Multi Purpose Wood Working Machine	1 No.	50000
Hand operated Screw Press 5 Nos.	1 No.	18000
3. Arc Welding Machine 300 Amp.	2 Set	28000
Gas Welding Set	2 Set	40000
Pipe Shearing Machine 4" size	1 Set	20000
Double ended bench Grinder 6"	1 No.	8000
Flexible Shaft Grinder 6" Wheel size	2 Nos.	3500
Bench Drilling Machine 3/4" Cap. with motor	1 No.	18000
Portable Drilling Machine	3 No.	21000
Powder coating plant (Anodising plant complete with rectifier 500 Amps 30 volts, complete with necessary tanks of 14 ft. length and initial chemical)	1 No.	500000
Air Compressor	1 No.	40000
Paint Baking Oven Temp. 300 deg. C, 8' × 6' size	1 No.	320000
Phosphating Plant	1 No.	60000
Total		1126500
Excise, sales tax & erection and installation charges 40% of total of 1 to 13		450600
Tools, Jigs, Fixtures, etc.		50000
Office furniture, almirah, chairs etc, work bench tables and racks .		200000
Total(ii)		1827100
(iii) Pre-operative Expenses		150000
Total Fixed Capital (i+ii+iii)		6864600

Working Capital (per month)

(i) Staff and Labour

Designation	Nos.	Salary (Rs.)	Amount (In Rs.)
Manager	1	15000	15000
Accountant-cum-Clerk	1	7000	7000
Skilled Workers	8	6000	48000
Semi–skilled Worker	8	4000	32000
Un–skilled Worker/Peon	6	3000	18000
Total			120000
Add 22% perks			26400
Total			146400

(ii) Raw Material

Particulars	No.	Rate (Rs.)	Amount (In Rs.)
MS Square and Rectangular Section of assorted size	92 MT	45,000/ MT	4140000
Ball Bearing Channel 15" long and 2 mm thick	9200 Set	35/ Set	322000
Both side Pre-laminated Particle Board 18 mm thick	12000 Sq.mtrs.	1000/ sq.mtr.	12000000
Plastic Fittings, Floor Adjuster Screws, PVC Beadings		L.S.	400000
PUF Arm set
i) For general type chair	6000 set	300/ chair	1800000
ii) For Executive Chair	3000 set	500/ chair	1500000
Tapestry/Fabric
i) For General type chair	21,000 Mtrs.	150/ Mtr	3150000
ii) For Executive Chair	7500 Mtrs.	190/ Mtr.	1425000
MS Strip 50× 5 mm size, MS Round 1½' size etc.	165 MT	39000/ MT	6435000
MS Pedastal Arms of Assorted sizes	93 MT	45,000/ MT	4185000
Twin Roller type ABS Coaster set	17000 set	400/ set	6800000
Plywood Seat (16"×16" and 18"×18" size) and Back (16"× 14" and 16"× 18" size) set, thickness 12 mm and PU Foam seat and Back set
i) For General type	14000 set	1400/ set	19600000
ii) For Executive type	3000 set	1900/ set	5700000
PVC Beadings Shoes for Chairs	L.S.		350000
Powder coating compound	2000 kg.	300/ kg.	600000
Total (per annum)			68407000
Say (per month)			5700583

(iii) Utilities

	Amt.(In Rs.)
Electricity	20000
Total	20000

(iv) Other Contingent Expenses

	(In Rs.)
Postage Stationery	8000
Telephone	8000
Transportation Charges	25000
Advertisement and Publicity	80000
Insurance	6000
Travelling Expenses	15000
Phosphating and Cleaning agents and other Misc. Expenses	8000
Total	150000

(v) Total Recurring Expenditure (per month)

	(Rs.)
Personal( salary & wages)	146400
Raw Material	5700583
Utilities	20000
Other contingent expence	150000
Total	6016983

Working capital is considered for an average working Capital cycle of 1½ months

Hence, Working Capital	= Rs. 6016983 × 1½
	9025475

Total Capital Investment

(i) Fixed Capital	6864600
(ii) Working Capital (for 1.5 months)	9025475
Total	15890075

Financial Analysis

Cost of Production (per year)	(In Rs.)
(i) Total Recurring Cost	72203796
(ii) Depreciation on Building@5%	143125
(iii) Depreciation on Machines @ 10%	112650
(iv) Depreciation on Tools, Fixtures, etc, @25%	7500
(v) Depreciation on Office equipment @20%	40000
(vi) Interest on Capital Investment @ 12%	1906809
Total	74413880
Say	744.14

Turnover (per year)

Description	Qty. Nos.	Price (Rs.)	Amoun (In Rs.)
Computer Table size 900 × 600 × 750 mm	3600	3800	13680000
Computer-cum- Printer Table size 1200 × 700 × 750 mm	2000	4000	8000000
Printer Table size 750 × 700 × 750 mm	3600	3500	12600000
Computer Chair without Arms size 725 × 725 × 950 -1050 mm	8000	3800	30400000
Computers Chair with Arm, size 725× 725×950-1050 mm	6000	4000	24000000
Executive Computer Chair size 725×725 ×1100-1200 mm	3000	6500	19500000
Total			108180000

Net Profit (per annum)

	Turnover - Cost of Production
	108180000-74413880
	= 33766120

Net Profit Ratio

	Net Profit per year × 100
	Turnover per year
	= 31.21%

Rate of Return

	Net Profit per year×100
	Total Investment
	= 45.38

Break-even Point

Annual Fixed Cost	(In Rs.)
Depreciation on Building@5%	143125
Depreciation on Machines @ 10%	112650
Depreciation on Tools, Fixtures, etc, @25%	7500
Depreciation on Office equipment @20%	40000
40% of Salary and Wages	702720
40% of other Contingent Expenses	720000
Total	1725995

B.E.P	Fixed cost × 100
	Fixed cost + Profit
	1725995x100
	1725995+33766120
	= 4.86%

Addresses of Manufacturers and Machinery /Equipment Suppliers

• M/s. Charandeep Industries
  S C O 32, G.S. Complex,
  1st Floor, Sangeet Cinema Road,
  Ludhiana.
  
• M/s. Akal Industries
  240, St. No. 3,
  Darmesh Nagar,
  Near Campa Cola Chowk,
  Ludhiana.
• M/s. A.P. Enterprises
  40, New Kapur Nagar,
  Sultanwind Road,
  Amritsar-143006
  Ph. No.: 2234099.
• M/s. Nightingale Products
  Bachittan Nagar,
  Near GNE College,
  Gill Road, Ludhiana.
• M/s. Welding and Tools Corporation
  GT Road Miller Ganj,
  Near Overbridge,
  Ludhiana.
• M/s. Kalgidhar Foundry and Agro Industries
  G.T. Road, Opp. Power House,
  Mandi Gobinagar.
• M/s. Ajit Electro Sales
  9, Gurudwara Market,
  Opp. Manager Cinema,
  G.T. Road, Ludhiana.
• M/s. A. P. Engineering Works
  42, New Kapoor Nagar,
  Sultanwind Road,
  Amritsar -143006.
• M/s. Guru Nanak Fabricators
  3201, St. No. 2,
  New Janta Nagar,
  Opp. Arora Palace,
  Ludhiana -141003.

For further information please contact

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com