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BUSINESS - PLAN
of the organization of the production of cellular polystyrene

In the given project the organization of the production of cellular polystyrene in Orsk is analyzed. The given calculation is approximate. The project is realized on a new-organized enterprise.

1. THE CONDITIONS OF CALCULATION

As the main stuff foaming suspension polystyrene of PSV - type is used. The production of the most widespread brand PSB - 25 is analyzed.

The main equipment is installed in closed, heated premises. The industrial premises are rented. The calculated month fund of working time at one-shift work is 25 days. The nominal productivity of the set of the equipment is 40 m3 per shift. Steam generator KEP - 160 is used. Prices, used in the calculation, are valid for 01. 09. 2005 in the Orenburg region. Thus, for one month it is possible to produce 40 m3 õ 25 days = 1000 m3 or 40 m3 / 8 hours = 5 m3 per hour.

2. MATERIALS

Foaming suspension polystyrene of PSV - type. The cost of 1 kilo is 53 rubles. You need 15 kilos of styrene PSB to produce 1 m3 of foam plastic what in terms of money is equal to 795 rubles

3. ELECTRIC ENERGY

The consumed electric energy to produce 1 m3 of foam plastic is:
Electric energy to produce steam was calculated the following way:
Steam generator KEP - 160 has power 160 kWt/h. At 100% load it works only 20 minutes per hour, i.e. 160 kWt õ 1/3 hour = 53.3 kWt/h. The rest 40 minutes steam generator works at 25 % load what is equal to 160 kWt õ 25 % = 40 kWt/h õ 2/3 h = 26.6 kWt/h. Thus, steam generator uses 53.3 + 26.6 = 80 kWt/h. In terms of money it is equal to 80 kWt/h õ 1.5 rub. = 120 rubles per hour. As 5 m3 are produced for an hour, you spend 120 rub / 5 m3 = 24 rubles to produce 1 m3.

4. EXPENSES FOR THE INDUSTRIAL PREMISES AND WAGES.

4.1. Wages
The production may be served by 2 men a shift. The wages of each man are 5000 rubles a month. So the wages for 2 men will be 5000 rubles x 2 = 10 000 rubles.

4.2. Rent
The rent of the industrial premises with the square 120 m2 is about 15 000 rubles a month.

4.3. Water supply
Cold water supply costs not more than 1 000 rubles a month.

4.4. Internal lighting
Internal lighting includes 4 lamps DRL with the power 0,25 kWt. The expenses for internal lighting will be 4 x 0,25 x 8h õ 1.5 rub = 12 rub. Monthly expenses will be equal to 12 rub õ 25 days = 300 rubles.

5. THE FINAL CALCULATIONS

Summing everything up, the cost price of 1 m3 of foam plastic (without raw materials and electric energy) will be equal to:
Wages - 10 000 rubles
Rent - 15 000 rubles
Water - 1 000 rubles
Lighting - 300 rubles
Total: 26 300 rubles.
If we divide it by 25 days and 8 hours, we'll get
26 300 / 25 / 8 = 131 rubles

The final cost price of 1 m3 is:
795 (raw materials) + 24 (electric energy for steam) + 131 (wages, rent) = 950 rubles.

The wholesale price of 1 m3 of foam plastic in Orsk is   1 300 - 1 500 rubles.

The profit after realization of 1 m3 of foam plastic is:
1 300 rubles - 950 rubles = 350 rubles.

So, the monthly profit is 1 000 m3 õ 350 rubles = 350 000 rubles.

 

last update: 16 November 2006