1.

Bill of Materials (BOM)

1. Base Frame:
a. Steel or aluminum frame
b. Bolts, nuts, and washers
2. Splitting Mechanism:
a. Hardened and ground chisel
b. Motor (electric or hydraulic)
c. Gearbox or pulley system
d. Bearings
3. Polishing Mechanism:
a. Polishing wheel or abrasive material
b. Motor (electric or hydraulic)
c. Polishing compound
4. Control System:
a. Control panel
b. Switches, buttons, and wiring
c. Motor controller (if applicable)
5. Safety Features:
a. Emergency stop button
b. Guards and shields
6. Miscellaneous:
a. Lubricants and grease
b. Paint (for finishing)

2. Cost Calculation

Calculate the cost per item by summing up the costs of all components in the BOM. Include material
costs, labor costs (if applicable), and any other direct expenses related to production.

3. Other Operating Costs

Identify additional costs that your business will incur, such as:

a. Labor: Salaries for machine operators, maintenance personnel, and other staff.
b. Utilities: Electricity, water, and other utility bills.
c. Rent: Cost of the production facility.
d. Maintenance: Regular servicing and repairs for the machine.
e. Insurance: Coverage for the equipment and personnel.

4. Capitalization for 12 Months

To determine the needed capitalization for operating the business for 12 months, consider the following:

Multiply the monthly operating costs (including material costs, labor, utilities, rent, etc.) by 12.

Use the Sales Order Management (SOM) data to estimate the number of units you plan to produce
during this period.