Proposed Initial Project Report

Sheet Metal Fabrication Site (Reservoirs)

Capacity - To be filled
Location – To be filled

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Introduction
Set-up the new fabrication set-up for the reservoirs and other sheet metal
items to supply the Railways sectors.
Objective
To analyse the production feasibility and know the basic requirements to install
the reservoir fabrication site with the tentative initial financial requirements.
This report will give basic understanding of infrastructure and project phases
step by steps. As well as this report will give some highlights of different
fabrication technologies.

Project Description
Project Fabricate the air reservoirs containing the range of 05 litres, 08 litres
and 15 litres & other sheet metals components (up to 5mm thk sheet) using
Stainless steel and Mild Steel. Production capacity will be xxxxxxxxx per/month
with the optimum investment as described in the further points.

Air Reservoir (Reference picture)

Uses and Applications

Air reservoirs will be installed on the vehicles and will be used to store the
compressed air. Industry and Application is kept confidential.

Market Survey
Stakeholders will perform the market survey to decide the business volume
and production capacity.

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Raw Material
As per the product specification, Stainless steel sheet (03mm, 5mm) SS round
Bar (Dia. 40 or 60 mm).

Manufacturing Process
Main process is fabrication (welding) will be used for final assembly of the
sheet metal parts.
Process Flow Diagram
Raw material
SS Sheets & Round Bar

Send to
Supplier

Laser cutting Dis End Drawing

Shell -Chamfering Chamfering &

& Drilling Drilling

Shell Bending /
rolling

Fitup + Welding

Leak Test

Pickling/
Passivation

Dispatch Process are outsourced

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Major / Critical Process
Welding is most critical process in reservoir fabrication because due to special
process the control of the process is must. Due to technology development we
may consider two different type of the welding process.
MIG welding - For the full welding, MIG welding universal welding process and
can be used in starting phase of the project.

Laser Welding – Laser welding is the advanced technology which is demanding

in industries. Now all the sheet metal industries are replacing the MIG/TIG with
lase welding.

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Difference between MIG and Laser Welding
MIG
Welding speed is very slow as
compared to Laser.
Lot of grinding work for finishing
required after welding
Can weld from 2 mm to higher
thickness
More joint gap can be managed.
Less cleaning required as compared
Weld quality is more dependable on
welder
Initial investment is less
Laser Welding
Laser is 4 to 6 times faster than MIG
Very less or negligible grinding
required.
Can weld from 0.5 to 5 mm thk.
Joint gap should be uniform
Joint should be properly cleaned
Weld quality is more dependable on
machine
Initial investment is high

Plant Layout

To be Finalized

Details of Plant & Machinery

1. One EOT crane – 3 Ton
2. One Bending / rolling Machine
3. One Mig Welding Machine

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 4. One laser welding Machine
5. 5 grinding machine
6. 3 Vernier
7. 10 Measuring Tape
8. 5 Right Angle
9. Hammer / Screwdriver / clamps etc. tools
10.One Pug cutting Machine
11.One Drilling Machine
12.Tanks for pickling / Passivation
13.Water Tank for Leak Test
14.Air Compressor + Reservoir
15.Rotary SPM for Welding
Supplier of Plant & Machinery – N/A

Plant Location Factors – N/A

Power & Water Requirement – To be Fill

Details of Manpower Required

1. Supervisor – 20 k
2. 03 Helpers – 30 k
3. 03 Welder – 36 k
4. 01 Surface Treatment – 12 k
5. 01 Bending Operator – 12 k
6. 01 Quality + Production +Account – 25k

Financial of the project

Land and Building cost – To be Fill

Plant & Machinery Cost

1. One EOT crane (3 Ton) – 5 Lakh
2. One Bending / rolling Machine – 3.5 Lakh

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 3. One Mig Welding Machine – 3.5 Lakh
4. One laser welding Machine – 15 Lakhs
5. 5 grinding machine – 45 Thousands
6. 3 Vernier – 15 Thousand
7. 10 Measuring Tape / Right Angle – 10 Thousand
8. Hammer / Screwdriver / clamps etc. tools – 10 Thousand
9. One Pug cutting Machine – 15 Thousand
10.One Table Drilling Machine – 15 Thousand
11.Tanks setup for pickling / Passivation – 2 Lakhs
12.Water Tank for Leak Test – 10 Thousand
13.Air Compressor + Reservoir – 1 Lakh
14.Rotary SPM for Welding – 1 Lakh
Total Plant & Machinery investment = 32.15 Lakhs
If we replace laser with one more MIG = 20.65

Other Fixed assets

Computer – 35 K
Office Furniture – 1 Lakh
Air Condition – 45 K
Printer – 15 K

Fixed Capital Investment

Land and Building cost + Plant & Machinery Cost + Other Fixed assets = To be
filled

Raw Material Cost

Raw Material - To be filled
Consumables - To be filled

Salaries & Wages

1.35 lakhs per Month
Marketing / Advertising Cost - To be filled
Total Working Capital – N/A

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Cost of Project
Total Capital Investment – Land and Building cost + Total Plant &
Machinery investment + Other Fixed assets + Quality Certification Cost
Cost of Production – Raw Material cost + Labour Cost + Other
miscellaneous charges (Maintenance) + outsourced process charges + tool / die
development charges + New Product Development Cost
Expected Turnover per Annum – To be filled
Expected Profitability Analysis – To be filled
Expected 5 Year Profit Analysis – To be filled
Projected Break Even Point - To be filled

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