Professional Documents
Culture Documents
FINAL PROJECT
Submitted to
Prof: Tariq Hussain
Submitted By
Mubashir Junaid
Khizer Munir
0008
0003
Nabeel Ulfat
DATE:26/2/2015
0015
Marble industry
Introduction of KMF
Khan marble factory is located in tehsil GujarKhan, gulyana morh near slater
house and university of central Punjab. The factory was established some
years ago. The total capital requirement for establishing such type of
business is Rs 10000000 to 15000000. And also includes the cost of
land.Faisal khan is the only person who deal with selling and is the part of
admin department.
Vision
Our vision is to be a leading Global manufacturer and marketer of Stone,
Marble and Granite products. Our top quality products have adorned
buildings and projects throughout the Sultanate and abroad. Our reputation
has been built on quality in every step of the way.
Mission
Our mission is optimum utilizing of available human and natural resources
together with the use of state-of-the-art technology to provide distinctive
high quality products and services to our local and international customers to
meet their expectations.
Material
Direct material: marble slabs
The material which is required for making tiles is supplied by various cities
which includes swat, Mardan , Bunair, Karachi,balochistan etc.
One more type of stone is Taweera that is bought from balochistan.and as
well as flower is also type of stone.
Products
Sunny grey
Zebra grey
Sunny white
Strength:
Quality material
Low cast
On time delivery
Products according to the customers design
No complaint from customers
Weakness:
Lack of proper setup
No proper accounting record
Opportunities:
Extension of business
Increasing demands
More investments
Tehsil as well district market capturing
Threats:
Labor force
There are 5 workers are working in Khan marble factory
Salary
10000 to 20000 approximately.
Machinery
The machinery which they are using is composed of three processes. First
the material is put into cutter machine then delivers to the resizer and at the
end of it is being sent to the polish machine.
Costing System:
Khan Marble Factory uses job order costing system. The job order costing of this company is as given
below:
Direct material
Marble Stone
Quantity
6 trucks
(24000 ft)
Unit cost
40
Total cost
960000
Direct Labor
Labor
Hours Used
8
Monthly rate
10000
Total
30000
FOH
Utility bills
Hours used
8
Monthly
25000
Total
25000
Total
1015000
Stones cost:
Sunny white
Sunny gray
= 40/ft
= 32/ft
Zabra
= 40/ft
Ziarat
= 90/ft
Monthly sale
4000 ft
Break-even Analysis
The break-even analysis establishes a relationship between operation costs
and revenues.
It indicates the level at which costs and revenue are in equilibrium. To this
end, the
break-even point of the project including cost of finance when it starts to
operate at full
capacity is estimated by using income statement projection.
Contribution Margin:
Contribution margin, or dollar contribution per unit, is the selling price per unit minus the variable
cost per unit. Contribution represents the portion of sales revenue that is not consumed by variable
costs and so contributes to the coverage of fixed costs
Sanny white
Contribution margin = selling price Variable cost
= 40 12
= 28
break even
Sanny gray
Contribution margin = selling price Variable cost
= 32 12
= 20
Break even
Zebra
Contribution margin = selling price Variable cost
= 55 12
= 43
Break even
Ziarat
Contribution margin
Break even
Master budget
The master budget is the aggregation of all lower-level budgets produced by a
company's various functional areas, and also includes budgeted financial statements, a
cash forecast, and a financing plan.
Marble Tiles
Sunny White
Sunny Gray
Ziarat
Total
Units
Units
2015
12000
12000
12000
2016
12500
12000
12500
Selling
price
2015
40
32
90
Selling
price
2016
45
35
100
Total
revenue
2015
480000
384000
1080000
1908000
Total
revenue
2016
562500
420000
1250000
2232500
Budgeted sales
Target ending finish goods inventory
Total require units
Less beginning Finish goods inventory
Units of finish goods to produce
Marble Tiles
2015
48000 feet
30000 feet
78000 feet
10000 feet
68000 feet
Marble Tiles
2016
60000 feet
40000 feet
100000 feet
20000 feet
80000 feet
2015
2016
12000 feet
12000 feet
Rs.
480000
12500 feet
12500 feet
Rs.
500000
2015
2016
48000
30000
78000
10000
68000
60000
40000
100000
20000
80000
2720000
3600000
2720000
3600000
Output
unit
2015
Marble
Tiles
48000
2016
Monthly
Salary
(30000)
(40000)
2015
2016
60000
360000
480000
Variable costs
Utilities
Maintenance
Fixed Costs
Depreciation
Total manufacturing overhead
2015
2016
300000
14000
400000
14500
50000
364000
50000
464500
2 DS
H
Q=
Q=
2 ( 48000 ) (0.36)
1
34560
=186 units
2015
1920000
Direct
Materials
Labor payroll
900000
FOH
360000
420000
2016
201000
0
105000
0
500000
2017
21800
00
11700
00
55000
0
415000 49000
0
2018
2230000
2019
2450000
1290000
1450000
600000
660000
530000
580000
D
Number of working days
48000
365
=132 feet
Overall Budget
=
258
Demand
each
working
day:
=
Problems
Future Projections
It is forecasted that the production of marble increases with a compounded
annual growth rate of about 8% per annum.
Years
2010
2015
2020
2025
In Pakistan, this sector has a long term potential, which is ensured by large
local reserves, and a growing global market. The expert estimates that the
countrys export of marble, which is presently $7million, can be increased to
$40 million within 3 years.
Conclusion:
This sector needed to be organized on modern lines. The induction of modern
technology in this sector will increase efficiency of processing units.
Improving the standard can only increase the demand of Pakistani products
in international market.
This sector has great potential to contribute to the national economic growth
and for the generation of employment mostly in the rural areas. This sector
also needs to be organized scientifically with a consistent follow-up by the
ministry of industries and production to achieve the export target of $500
Million.
Recommendations