Computer Assembling

INTRODUCTION :
Today computers are used for various applications in day to day life. A Micro
Enterprise unit proposed activity Computer assembling & Sales. For this computer parts
will be Purchased from dealer and assembling in the unit. Assembled Computers will be
marketed through the distributors appointed by the entrepreneur. The distributor will
also inform the needs of the computer through the market Survey.

Computer Assembling

Computer assembling business refers to the process of building a computer by selecting individual components such
as motherboard, processor, memory, storage, and graphics card, and assembling them into a working system. This
process allows for greater customization and flexibility compared to buying pre-built computers from
manufacturers.

In computer assembling business, customers can choose the specific components they want based on their needs and
budget, and the assembler will put together the system accordingly. The assembler may also offer additional
services such as testing, troubleshooting, and technical support. Computer assembling business can be done either
online or in physical stores, and can cater to both individual and corporate customers.

MARKET SCOPE:
Today computers are used in every field from schools to hospital. Although
branded computers are available in the market but mostly people prefer assembled
computers because of following reasons:

Freedom to Choose Components:

In Assembled PC you have the freedom to choose the hardware components that
includes CPU, RAM, Motherboard, Hard Disk, Monitor, Mouse, Keyboard, SMPS etc.
according to your needs, whereas in branded computer the configuration is fixed or
chosen by the company and you have to deal with that only.

Cost Effective & Cheaper:

Branded PCs are more expensive than an assembled computer. If we compare
a branded computer with an assembled computer with same configuration having
same components then you will find that the price of branded pc is much more than
an assembled pc. This is because of the brand name associated with that computer
and also they provide warranty on the entire computer.

Flexibility:
In Branded PC you cannot alter the configuration of you computer during the
warranty period i.e. change, remove or add any component as it can lead to violation
in the warranty but in Assembled PC there is no such restriction and you are free to
add, remove or upgrade any component according to your needs or requirements.

Room for Future Expansion:

 With an assembled computer you can choose your components in such a way,
so that there can be some room for expansion in the future. For example you can
get a latest high-end motherboard, so that you can upgrade to a better processor
and graphics card in the future.

Warranty:
In Branded PC, the company gives warranty on the entire computer as whole
i.e. 5 years on entire pc for all components whereas in assembled computer the
warranty is provided by the vendor on individual components which is different for
each component i.e. processor can have warranty of 2 years, hard disk for 5 years
and so on. This is not a major issue but branded computers might have some edge
on the warranty issue.

RAW MATERIALS:

Mother Board, ATX Cabinet, Packing Material Mouse, Key Board, Monitor,
Processor,

Manufacturing process:
Cabinet setting, Fix the SMPS (Switched Mode Power Supply),Fix the
Mother Board, Fix the Processor, Fix the Hard Disk, Fix the CD Writer
Installation of operating system & Soft Ware

Some Good Brands of Hardware Components when Assembling a PC

Here are some good brands or companies of various hardware components

that can be helpful in choosing components while assembling a PC.

Processor/CPU — Intel, AMD.

Motherboard — ASUS, Gigabyte, MSI, AS-Rock, Intel.
RAM — Corsair, Transcend, Kingston, A-Data, G-Skill.
Hard Disk — Seagate, Western Digital (WD)
Optical Drive — Liteon, LG, Sony, Asus
Monitor/LCD — Samsung, LG
Graphics Card — Nvidia, AMD/ATI
SMPS — Corsair, Antec, Cooler Master, Seasonic
Keyboard & Mouse — Logitech, Microsoft
Cabinet — Depends on your preference or choice, but get a spacious
cabinet that has enough room for all the components and have proper airflow. For high quality
cabinets you can go for Antec and Cooler Master.
Speakers — Logitech, Altec Lansing, Creative
UPS — Luminous, APC, Microtek, Numeric

All the components are easily available in the market and a computer with all
components of good quality can be assembled and made available at reasonable price.

Production Targets:
50 computers per month
 FINANCIAL ASPECTS:
A) Fixed capital:

a) Land Building required :

Rent (per month): Rs. 4000/-

b) Machinery & Equipment:

S.NO MACHINE NAME QUNTITY RATE VALUE

1 Screw Driver 4 250 1000
2 Multi meter 4 1000 4000
3 Soldering iron 4 250 1000
4 Soldering station 4 6000 24,000
5 Other fitting items - 5000 5000

c) Other fixed asset:

Erection and installation 20,000

Office furniture 20,000

Pre operative expnses 25,000

Total 65,000

Total fixed capital 100,000

Total fixed capital- Rs. 1,00,000/-

B) Working Capital:

d) Staff & Labor:

03 workers are required to perform all the operations:

Designation NO Salary Total

System engineer 2 30000 60000
Distributor 2 15000 30000
Peon 1 6000 6000
 Total 96000
Prerequisite@15% on 0.15 x 96000 = 14400
total salary
Total 110400

e) Raw material (per month):

Particulars Qty Rate per piece Cost

Mother Board 50 3000 150000
ATX Cabinet 50 1500 75000
Mouse 50 500 25000
Hard disk 50 1000 50000
Ram 50 1000 50000
Micro Processor 50 7000 350000
Key Board 50 1000 50000
Monitor 50 5000 250000
SMPS 50 1000 50000
Internal cables 50 500 25000
Packing material LS 25000 25000

1150000
Totals

f) Utilities (per month):

Power 3000
Water 1000
Fuel for generator 1000
Total 5000

g) contingent expenses:

Rent 5000
Postage and stationery 1000
Telephone/telex/Fax charges 2000
Transportation 8000
Miscellaneous expenditure 2000
Total 18000
 Total reccuring expenses: (d+e+f+g)

Staff and labour (D) 110400

Raw materials (e) 1150000
Utilities (f) 5000
Contingent expenses (g) 18000
Total recurring expenses 1283400

Total working capital for 03 months:

= 3 x recurring expenses per month

= 03 x1283400

= Rs 3850200/-

Rate of return on Investment :

= _Net profit per year X 100_

Total Cost of production per annum

= 2126476*100/15873524

= 13.4%
 ©) Total capital investment

Machinery & equipment 35000

Working capital for 3 months 3850200

Total 3885200

FINANCIAL ANALYSIS:

Cost of Production:

Recurring expenses 2 12x RE per month 12¢1283400 =

15400800
Depreciation on machinery 10% on M/C cost 0.1x35000 =
3500
depreciation on fixed assets 15% on funiture 0.15x20000 =
and furniture 3000
Interest on total investment 12% on working capital 0.12x3885200 =
466224
Total 15873524 15873524

Turn over (per annum by sales):

Product Qty (pieces) Rate per piece Value

Computer system 50 30000 1500000
Total 1500000
Total turnover per month 1800000

Net Profit per year.

= Sales value - cost of production

= 18000000-15873524

= 2126476/-

Net profit Ratio:

= Net profit per year x 100

Turn over per annum

 = 21264768*100/18000000

= 11.814%

Rate of return on investment:

= Net Profit per year x 100

Total cost of production per annum

=2126476*100/15873524

=13.4%

Break oven point analysis

Rent 4000*12 48000

Depreciation (10% of m/c) 0.1x35000 = 3500
Interest on capital investment 0.12x3885200 = 466224
40% of wages of staff and 0.4x110400x12 = 529920
labour
40% of other contingent =0.4x18000x12 = 86400
expenses
Total say Z (z) 1134044

Break even point:

Z x 100

= (Z+ Net profit per annum)

1134044*100

= 1134044+2126476

= 34.78%

The Benefits of Computer Assembling Business

One of the major benefits of computer assembling business is cost-effectiveness. By purchasing
components separately and assembling them in-house, businesses can save money compared to
buying pre-built computers from manufacturers. This also allows for greater control over the
quality of the components used.

Another advantage of computer assembling business is customization. Businesses can offer a

wide range of options to customers, such as different processors, graphics cards, and storage
options. This allows customers to build a computer that meets their specific needs and
preferences.

Market Analysis

The computer assembling business has experienced significant growth in recent years, with a
market size of rs830,35 billion in 2020. This growth is expected to continue due to the
increasing demand for customized and high-performance computers.

However, the market also presents some challenges, such as intense competition from
established players and a rapidly changing technological landscape. To succeed in this market,
businesses need to stay up-to-date with the latest trends and offer innovative solutions that meet
customer needs

Marketing Strategies

Social media advertising is a powerful tool for reaching potential customers. By targeting
specific demographics and interests, you can ensure that your ads are seen by people who are
most likely to be interested in your products. Consider running targeted ads on popular
platforms like Facebook, Twitter, and Instagram to increase brand awareness and drive traffic
to your website.

Email marketing is another effective way to reach customers. By creating a mailing list of
interested subscribers, you can send regular updates about new products, promotions, and other
exciting news. Make sure your emails are visually appealing and provide value to your
subscribers to keep them engaged.

Key Success Factors

Quality components are essential for any successful computer assembling business. Using high-
quality parts ensures that the final product is reliable, performs well, and meets customer
expectations. In addition, using reputable brands can help build trust with customers and
establish a positive reputation in the market.

Competitive pricing is also important in the computer assembling business. Customers are often
looking for the best value for their money, so offering competitive prices can attract more
customers and increase sales. However, it's important to balance pricing with profitability to
ensure the long-term sustainability of the business.

Key Success Factors

Quality components are essential for any successful computer assembling business. Using high-
quality parts ensures that the final product is reliable, performs well, and meets customer
expectations. In addition, using reputable brands can help build trust with customers and
establish a positive reputation in the market.
Competitive pricing is also important in the computer assembling business. Customers are often
looking for the best value for their money, so offering competitive prices can attract more
customers and increase sales. However, it's important to balance pricing with profitability to
ensure the long-term sustainability of the business.

Key Success Factors

Quality components are essential for any successful computer assembling business. Using high-
quality parts ensures that the final product is reliable, performs well, and meets customer
expectations. In addition, using reputable brands can help build trust with customers and
establish a positive reputation in the market.

Competitive pricing is also important in the computer assembling business. Customers are often
looking for the best value for their money, so offering competitive prices can attract more
customers and increase sales. However, it's important to balance pricing with profitability to
ensure the long-term sustainability of the business.

Troubleshooting Common Issues

During a computer build, it's not uncommon to encounter issues such as compatibility problems
or hardware failures. These can be frustrating and time-consuming to troubleshoot, but with the
right approach, they can be resolved quickly and efficiently.

One common issue is compatibility between components, such as a motherboard that doesn't
support a particular CPU or RAM module. To avoid this, it's important to research compatibility
before making any purchases. If you do encounter compatibility problems, try updating the BIOS
or drivers, or swapping out components until you find a combination that works.

Another common issue is hardware failure, such as a faulty power supply or RAM module. In
these cases, it's important to diagnose the problem accurately before attempting any repairs.
Use diagnostic tools like Memtest86+ or Prime95 to test individual components, and replace
any that are found to be faulty.

By being prepared for these common issues and knowing how to troubleshoot them effectively,
you can minimize downtime and get your computer up and running smoothly.

Software Installation and Configuration

Once you have assembled all the necessary hardware components, the next step is to install and
configure the software on your newly built computer. This process involves installing the
operating system, drivers, and other essential software, such as antivirus programs and
productivity tools.

To optimize the performance and security of your system, it is important to follow best practices
when installing and configuring software. For example, you should always download software
from reputable sources and keep your system up-to-date with the latest security patches.
Additionally, you may want to customize your system settings to suit your specific needs and
preferences.

Marketing Your Computer Building Business

Marketing is a crucial aspect of any business, and computer building is no exception. To

effectively market your computer building business, you need to create a strong online presence
that showcases your expertise and services. This can include creating a professional website,
blog, and social media profiles that are optimized for search engines and user engagement.

You should also consider networking with local businesses and organizations that could benefit
from your services, such as schools, offices, and community centers. This can help you build
relationships with potential customers and generate word-of-mouth referrals. Additionally,
offering promotions and discounts can incentivize new customers to try your services and help
you stand out in a competitive market.

Managing Finances for Your Business

Managing finances is a crucial aspect of running a successful computer building business. To

ensure profitability, it's important to keep track of all expenses and revenue streams. This
includes not only the cost of components and labor, but also overhead expenses such as rent,
utilities, and marketing costs.

One effective way to manage finances is to use accounting software that can automate many of
the tasks involved in bookkeeping and financial analysis. Additionally, it's important to regularly
review financial statements and make adjustments as needed to optimize profitability. By staying
organized and informed about your business's finances, you can make strategic decisions that
will help your business grow and succeed.

The Future of Computer Building

continue is the move towards smaller, more compact designs. This will be driven by the
increasing demand for portability and the need for devices that can be easily transported from
one location to another. Another emerging technology that is expected to have a significant
impact on computer building is artificial intelligence. AI has the potential to revolutionize the
way computers are designed and built, allowing for greater efficiency and customization.

In addition to these trends, there are a number of other technologies that are likely to shape the
future of computer building. The future of computer building is exciting and full of possibilities.
One trend that is likely to These include advancements in materials science, which will allow for
the creation of stronger and lighter components, as well as developments in quantum computing,
which could lead to a new era of computing power. As these technologies continue to evolve and
mature, we can expect to see a whole new generation of computers that are faster, more
powerful, and more versatile than ever before.

The Importance of Customer Service

Customer service is a critical component of any successful computer building business. Not only
does it help to build trust and loyalty with customers, but it can also have a significant impact on
the bottom line. Studies have shown that customers are willing to pay more for products and
services if they receive exceptional customer service.

To provide exceptional customer service, it's important to listen to your customers' needs and
concerns, communicate clearly and effectively, and go above and beyond to exceed their
expectations. This could mean offering personalized recommendations based on their specific
needs, providing timely and transparent updates throughout the build process, or offering post-
sale support and troubleshooting assistance.

Q&A

Thank you for your attention and participation. Now, it's time for the Q&A session where we can
address any questions or concerns you may have. Don't be shy! This is a great opportunity to
reinforce key points from the presentation and engage with one another.

Feel free to ask about anything from the benefits of building your own computer, to
understanding computer components, to troubleshooting common issues. We're here to help and
provide insights that will empower you to build your own computer or start a computer building
business. Let's get started!

Thank You

Thank you for joining us today and taking the time to learn about the exciting world of computer
building. We hope that this presentation has inspired you to consider building your own
computer or even starting a business in the industry.

If you have any further questions or would like to learn more, please feel free to reach out to us
using the contact information provided. We would be happy to connect with you and continue
the conversation.