PROJECT PROFILE FOR MANUFACTURE OF ADJUSTABLE HOSPITAL BEDS

I. Product and its uses

         Adjustable hospital beds are made of steel and normally used in Government Hospitals, Private Hospitals, and Nursing Homes etc. There are two types of hospital beds namely;

         1. Fowlers Hospital Beds and
         2. General Purpose Hospital Bed Steeds.

II. Market Potential

         The demand for adjustable hospital beds is increasing due to the following factors.

         1. Increase in the number of hospitals in private sector and their expansion
         2. Increase in number of private and government nursing homes and their expansion

         The Government is encouraging new hospitals and nursing homes in private sectors in order to increase treatment facilities in accordance with the development in public health sector and as such it is likely be a steady increase in the demand for hospital furniture. However, the growth rate is expected to be more than 3 to 5% per year and as such it may be ideal for the existing steel furniture manufacture units to take up this activity for not only as a diversification but also better capacity utilization by installing a few balancing equipments.

III. Production Target

         It is proposed to manufacture 400 Adjustable Hospital Beds per annum.

IV. Basis and Assumptions

         1. The basis for the calculation of the production capacity is on single shift basis.

         2. The cost of machinery and equipments, raw materials, rental value of premises is taken as average prices prevailing at present and should be verified while implementing the scheme.

V. Implementation Schedule

         It is expected to complete all the formalities and commence the commercial production with one year.

VI. Production Details and Process of Manufacture

         The basic operations involved in the manufacture of adjustable beds are as follows:

         1.          Cutting and Bending of Pipes
         2.          Cutting of M.S. Angles
         3.          Cutting of Strips
         4.          Welding, Riveting
         5.          Grinding
         6.          Assembly of elevating mechanism
         7.          Painting, Baking

VII. Inspection and Quality Control

         IS: 7378-1974 specifies dimensional and other requirements of fowlers beds used in hospitals.

         IS: 5039 – 1969 specifies material, shape and dimensions for bedstead general purpose for the use in hospitals. The above specifications may be followed for quality control.

VIII. Energy conservation

         This industry is not a large-scale power consuming industry, however maximum care should be taken in utilization of electrical energy.

IX. Pollution Control

         These types of units are is not producing any effluents or any other polluting materials. Therefore pollution control measures are not taken into account.

X. Production Capacity

         This unit is envisaged to produce 400 No of different types of hospital beds to the worth of Rs. 23, 85,000 per annum

XI. Land and Building

         200 sq.mts. Built-up shed rented - Rs.2, 500/- per month

XII. Machinery and Equipments

1.
Pipe bending machine hand operated with fixtures locally fabricated
3 No.
30,000
2.
Arc welding set
1Set
9,000
3.
Gas cutting set with torch, regulators etc.
1Set
7,000
4.
Bench drilling machine 13 mm capacity
1No.
6,500
5.
Portable drilling machine 13 mm capacity
1No.
4,500
6.
Flexible shaft grinder 150wheel mm
1No.
4,000
7.
Double ended bench grinder 300 mm size
1No.
7,000
8.
Hand shearing machine 3 mm capacity
1No.
2,000
9.
Baking oven 2.5 x 2 mts. x 2 mts. size 20 KW
1No.
45,000
10.
Hand Press No.4
2No.
8,000
11.
Cleaning, Pickling, Phosphating tanks 2.5 x 2 x 2 mts.
7No.
25,000
12.
Compressor with spray gun unit for painting
1No.
12,000
13.
Riveting machine portable type electrical
1No.
12,000
14.
Hand tools, instruments, etc.
-
6,000
15.
Fixtures and dies
-
15,000
16.
Electrifications and installations
-
20,000
17.
Office equipments/work table etc.
-
25,000
18.
Pre-operative expenses
-
45,000
 
Total
 
2,83,000

XIII. Staff and Labour (per Month)

1.
Supervisor
1 No.
3,500
2.
Clerk/Accountant
1 No.
2,500
3.
Peon/Chowkidar
1 No.
1,000
4.
Skilled Workers @2500/
2 No.
5,000
5.
Semi skilled Workers @1500/
2 No.
3,000
6.
Helpers@1000/
2 No.
2,000
7.
Labour benefits 20%
-
3,400
 
Total
 
20,400

XIV. Raw Material (per month)

1.
M.S Angle Iron 40 mm x 40 mm x 3 mm and 38 mm x 38 mm x 3 mm – 0.75 MT @ Rs.20,000/- per MT
15,000
2.
M.S Tubes 38.10 mm o.d x 1.6/1.22 mm thick – 1.5 MT @ Rs.22,000/- per MT
33,000
3.
M.S Tubes 25.40 mm o.d x 1.6/1.22 mm thick – 1.25 MT @ Rs.22,000/- per MT
27,500
4.
M.S Tubes 19.5 mm o.d x 1.22 mm thick – o.75 MT @ Rs22,000/- per MT
16,500
5.
M.S Strips 1.25 mm x 25 mm – 0.75 MT @ Rs.16,000/- per MT
12,000
6.
Castor wheels – 200 Nos.
6,000
7.
Nuts, Bolts, Screws, Washers, Flats, Rubber items and paint etc.
12,000
 
Total
1,22,000

XV. Utilities

1.
Power
2,500
2.
Water
1,500
 
Total
4,000

XVI. Other Expenses (per month)

1.
Rent
2,500
2.
Postage and Stationery
1,500
3.
Telephone
2,500
4.
Repair and maintenance
1,000
5.
Consumable stores
1,500
6.
Transport charges
2,500
7.
Advertisement and publicity
4,000
8.
Insurance
1,000
9.
Sales expenses
5,000
 
Total
21,500

 

XVII. Working Capital (per month)

1.
Staff and Labour
20,400
2.
Raw Materials
122,000
3.
Utilities
4,000
4.
Other expenses
21,500
 
Total
1,67,900
 
Working Capital for three months
5,03,700

XVIII. Total Capital Investment

1.
Machinery and equipment
2,83,000
2.
Working capital for three months
5,03,700
 
Total
7,86,000

XXI. Cost of Production (per annum)

1.
By Sales of 250 nos. Fowlers hospital beds @ Rs.8000/ each
20,00,000
2.
150 nos. General purpose hospital beds @ Rs.2500/- each
3,75,000
3.
By scale of scrap
10,000
 
Total
23,85,000

XX. Total Sales (per annum)

1.
By Sales of 250 nos. Fowlers hospital beds @ Rs.8000/ each
20,00,000
2.
150 nos. General purpose hospital beds @ Rs.2500/- each
3,75,000
3.
By scale of scrap
10,000
Total
23,85,000

XXI. Profitability (per annum)

         Profit = Total sales – cost of production

                  = Rs.23,85,000 -- Rs.20,82,600

                  = Rs. 302400

a) Percentage of profit on sale

                  = 302400 x 100 / 25,10,000

                  = 12.68%

b) Percentage of return over investment

                = 302400x 100 / 7,86,000

                = 38.4 %

XXII. Break Even Analysis (B.E.P)

        Annual Fixed Cost x 100 / Annual Fixed Cost + Profit

Annual Fixed Cost

1.
Rent
30,000
2.
Interest
33,960
3.
Depreciation of machinery & equipments
33,850
4.
40% of salaries
97,920
5.
40% of other expenses including utilities and excluding rent
1,10,400
 
Total
3,06,130

 

B.E.P = 3,06,130 x 100 / 3,06,130+302400

          = 50.3 %

Addresses of Machinery Suppliers

1.         M/s. Quality Machine Tools
            No.25 J.C. Road, Near VSL Bldg., Bangalore-2.

2.         M/s. Batliboi Engineers Pvt. Ltd.
            99/2, 99/3 N.R. Road, Bangalore-2

3.         M/s. Perfect Machine Tools
            Grant Road, Bangalore – 1

4.         M/s. Indian Oxygen Ltd.
            Nagaraj Road, New Delhi

5.         M/s. Simplicity Engineers
            B-99 Mayapuri, New Delhi

6.         M/s. K.G. Khosla & Co.
            Mathuri Road, Badarpur, Delhi.

Names and Addresses of Raw Materials Suppliers.

        Raw materials can be obtained from Government Sources and Local dealers.