PROJECT GROUP ASSIGNMENT

Select or propose an engineering product and prepare project for

producing and selling that product. Prepare project report with
following contents.
ENGINEERING PRODUCT:
CEMENT

NAME OF OUR PRODUCT:

DIAMOND CEMENT

INTRODUCTION OF PROJECT

1. Introduction of Product (good or service) along with some

technical details.
The name of our product is diamond cement.

What is cement?
“Cement is a binder substance used for construction that sets,
hardens, and adheres to other materials to bind them together”

COMPOSITION OF CEMENT:

Portland cement is made up of four main compounds:

tricalcium silicate (3CaO · SiO2) dicalcium silicate (2CaO · SiO2), tricalcium
aluminate (3CaO · Al2O3), and a tetra-calcium aluminoferrite (4CaO · Al2O3Fe2O3).
TECHNICAL DETAILS:
Cement is manufactured through a closely controlled chemical
combination of calcium, silicon, aluminum, iron and other ingredients. Common
materials used to manufacture cement include limestone, shells, and chalk or
marl combined with shale, clay, slate, blast furnace slag, silica sand, and iron ore.

Flow chart of cement production:

What physical infrastructure like plant, building and machinery is
required for producing that product? Production Capacity

Building is required to make a industry to produce cement.

Plant required:

Machinery required:
1-excavator
2-crusher
3-proportioningequipment
4-preheater tower
5-grinding mills
etc
Producing capacity:
7512000 (metric cubes)

How much staff like GMs, Managers, Officers and labour is required?
Prepare Organogram.
As we make an industry to produce cement at Pakistan level so our
required staff
NO OF GMS:
1
NO OF MANAGERS:
8
NO OF OFFICERS:
24
LABOUR:
250

Organogram:

GM=1

Manger=8

0fficer=24 labour=250

Time period of project:

Time period of project is one year

MARKET ANALYSIS
 1. Type of Market (Explain the characteristics of market which
determine the type that your selected)

Type of market:

Perfectly competitive market

Characteristics of perfectly competitive market:

 There are many buyers and sellers in the market.
 Each company makes a similar product.
 Buyers and sellers have access to perfect information about price.
 There are no transaction costs.
 There are no barriers to entry into or exit from the market.

Market demand
Market demand of cement may increase with increase of construction work.
Market demand may increase with decrease in price

Mention Factors affecting the demand of that product

The demand of cement is affected by many factors
 Construction work
 Quality
 Production capacity

Market supply:
Total amount of cement sell in given time.
5000 bags/day

Mention Factors affecting the supply of that product (Other than

price).

 Production capacity
 Level of technology used to produce cement
 Number of seller
 Price

Future expectations:
In future with increase of investment we can do more
production of cement. Sale it at low price and get higher profit because production
unit increases. Quality of our project is also better. Produce our product at higher
level.

COSTS AND REVENUE ANALYSIS

Project’s fixed costs

 Cost of staff
 Cost of building
 Cost of machinery

Project’s variable cost

 Cost of raw material
 Cost of labor
 Cost of electricity
 Production supply
1. Total Cost
Total cost= fixed cost +variable cost
The total cast of our project is the sum of fixed cost and variable cost

Average Fixed Cost, Average Variable Cost, Average Total

Cost, Marginal Cost

Average fixed cost:

The average fixed cost of our project is
=Total fixed cost / no of cement bags produced

Average variable cost:

The average variable cost of our project is

=total variable cost / total no of unit produce

Average Total Cost:

Average total cost of our project is

=total cost / total no of unit produce
Marginal Cost:
Marginal cost of our project is the change in our total cost due to one
unit of cement increase in production.
FINANCIAL AND FEASIBILITY ANALYSIS
Cash Flows over the time of your project (Tables)

Project Jan Feb Mar Apr Ma Jun July Aug Sep Oct Nov Dec
expens ch il y
es
Project 800 700
initiati 00 00
on
Constr 200 300 500 430 100 3000 4000
uction 000 000 000 000 000 00 00
cost
Plant 1000 6500 700 500 300 200 1100
machin 000 00 000 000 000 000 000
ery
Project 150 100 600 750 1300 7500 750 500 700 750 7500
manag 00 00 0 0 0 0 0 0 0
ement
Trainin 500 100 1500 100
g 0 00 0 00
Bills 600 500 800 110 120 2000 4000 200 250 260 210 1900
0 0 0 00 00 0 0 00 000 000 000 00
Monthl 306 385 514 441 120 1333 1112 737 530 567 417 1297
y total 000 000 000 000 500 000 500 500 000 000 500 500

Proj Jan Feb Mar Apri May Jun July Aug Sep Oct Nov Dec
ect ch l
cas
h
flo
w
cas 100 135 214 221 305 4330 3120 237 130 200 190 4005
h 000 000 000 000 000 00 00 500 000 000 000 00
Deb 206 250 400 220 900 9000 8005 500 400 367 327 8970
t 000 000 000 000 000 00 00 000 000 000 500 00
Tot 306 385 514 441 120 1333 1112 737 530 567 417 1297
al 000 000 000 000 500 000 500 500 000 000 500 500
 Calculate discount rate or interest rate that and investor would want
on Investment

Discount rate or interest rate:

The discount rate refers to the interest rate used

in discounted cash flow (DCF) analysis to determine the present value of future
cash flows. 

Formula of discount rate:

= (future cash flow / present value) ^1/n -1

Let suppose investor invest 100000 in our project.

And we work on 10% interest rate
After 5 year of investment the value of his investment become 161051

Interest Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

rate
10% 100000 110000 121000 133100 146410 161051

Calculate NPV, NFV, Annual Worth, Pay Back Period, Cost Benefit
Ratio of your project.

NPV:
 Year cash flow
0
1
2
3
4

NPV

NFV
Interes 10%
t rate
Year