Project Report :

New branch of pizza hut

Submitted To:

Mr. ADEEL AKHTAR

Submitted By:

MUHAMMAD JAVED 59

M.COM 4th session (2010-2012)

THE ISLAMIA UNIVERSITY BAHAWALPUR

MY PARENTS

AND

TEACHERS

And also to

ALL MY

WELL WISHERS.

Almighty ALLAH is the entire source of knowledge and wisdom endowed to

mankind and His dearest Nabi, MUHAMMAD (PBUH) is a light of guidance and

knowledge for humanity as a whole.

Everyone has a long list of individuals to whom he is indebted. We are no

exception. We are firstly, with humble gratitude bow our heads before Almighty

ALLAH for giving us strength, courage, patience and inspiration, and enable us to

complete this project. To work for this project, was a difficult task, because it is

about

NEW PIZZA HUT BRANCH

We acknowledge with thanks and admiration, our dependence on all of our

respondents on their nice co-operation and giving us their loyal time. We feel

Great pleasure and honors to express our gratitude from the citadel of hearts to our

respected and dignified instructor

SIR.ADEEL AKHTAR

Without whose guidance it would have been difficult for us to achieve

Our objectives He provide us, his in-depth approach of the subject

“Project Management“

And taught us a lot of tell analysis techniques which we have applied during data

analysis. His sympathetic behavior has an ever lasting impression on the page of

our memory.

THANKS:

Descr ip t ion

Executive summary

History of ice makers

PEST ANALYSIS

Comparative STRATEGY

Personnel Analysis

SWOT Analysis

Conclusion & Recommendations

The Project:

Most of areas of Pakistan have long duration of summer due to which demand for ice is high for more than six months of the year. As in India demand for ice is more due to GOLAWALA during summer. Other growing markets for ice plant are industries linked to FOOD PRODUCTS i.e. fish, dairy, packaged food, restaurants etc. With this growing demand a large number of ice plants are operating in the country.

. My proposed project is useful and beneficial for Bahawalpur city. Food products industries like fish, dairy, packaged food, restaurants are linked to this industry. Mainly it produces for the “Cold Storage” purpose. So we generate the idea to set up an ice plant according to the requirements of the people of this city as this city has a great demand. Depending on the facts this area of opportunity has not been exploited properly. We primarily focused on developing an idea to set up a ice manufacturing plant for business purpose or to be known as

“ICE 2 ICE, ICE PLANT”.

This project is related to setting up an ice plant of 50-tons capacity per day to cater to the needs of the associations such as fish sellers, hotels, restaurants, dairy, etc. The proposed project will manufacture ice blocks varying from 130 kg to 150 kg in weight.

The History of Ice Makers

Only within the past 200 years or so have people been able to make ice in their homes. If you had lived in a warm climate before then, you might never see ice in your lifetime. Until the advent of refrigeration and freezing technology, ice was cut from lakes and rivers during the winter and stored in insulated places for use during warmer months. Ice also was imported from cold to warm climates. The quality and quantity of the ice, however, was unpredictable at best.

Ice Maker Inventors

o In 1850, Dr. John Gorrie, a physician, scientist, inventor and humanitarian, demonstrated an ice maker and was granted a patent for the design in 1851, though he never brought it into commercial production. Gorrie is considered the father of refrigeration, inventing, among other things, an air-cooling system for a Florida hospital. He was not the only one working in the field, however. Alexander Twining received a patent in 1853 for an ice maker, and James Harrison of Australia received a patent in 1855 for an ice maker as well. In 1866, Thaddeus Lowe invented the first commercially produced ice machine, with the first commercially produced ice being sold in Dallas that same year.

Home Refrigeration

o Refrigeration was invented in the mid-1800s then continuously developed by different people in different countries. Home refrigerators began to replace the old-fashioned ice box, but the early models did not have freezer compartments.

By the 1920s refrigerators in the home became widespread in the West. Freezer compartments and ice cube trays were gradually added to new refrigerator models so that people could make ice cubes at home.

First Ice Maker in a Refrigerator

o In 1953 the Servel company first introduced a refrigerator with a built-in ice maker. The technology gradually evolved from people having to fill the water manually to water hook-ups that allowed the house's tap water line to be connected to the ice maker. By the 1960s, refrigerators with built-in ice makers were widespread.

First Ice Maker in the Door of a Refrigerator

o In 1965, Frigidaire introduced the first refrigerator with the ice maker in the door, along with a water dispenser, so that ice and water could be dispensed without having to open the appliance. By 1985, ice cube maker storage had improved so that up to 12 pounds of ice could be kept on hand.

Ice plant requirements

Space

Modern icemakers are compact in comparison with block ice equipment, but it is not always possible to compare directly the space occupied by different types; for example they may not be

available in the same unit sizes. However some guidance on the space requirements for icemakers with a nominal capacity of 50 tons a day

Space required for an icemaker producing 50tons/day

Type of ice Floor area m2 Height mBlock 190 (5000 sqftapprox) 5.0

Power

Average power and peak power requirements may be different, and both have to be considered at the planning stage. The average power relates to the energy consumed in making a ton of ice, and this is important in calculating operating cost. Peak power is important to the designer since it will determine what electrical supply is required, and may also affect operating cost if a peak demand factor is applicable.

The energy required to make a tons of ice is not constant. It varies widely depending on a number of factors, the most important of which are

Type of ice unitsOperating temperatureMake-up water temperatureCooling water temperatureAir temperatureSize of plantUtilization of plantMethod of refrigeration

Energy consumption figures quoted by manufacturers for unspecified operating conditions should be used only as a general guide.

Other Equipment

Other Equipment Details Quantity

Generator 100 KVA (Engine Bus) 1

Transformer 100 KVA 1

Water Bore Diameter 3” – 4” 1

Total Equipment Cost

Furniture & Fixture

Description Qty Cost/Unit Total Cost

Tables 3 5,000 15,000

Chairs 12 1,500 18,000

Fans 4 1,800 7,200

Lights 12 350 4,200

Computer 1 20,000 20,000

Telephone 1 2,500 2,500

Total Furniture & Fixtures 66,900

Office Vehicle

Description Qty Cost/Unit Total Cost

Suzuki Pick-up 1 500,000 500,000

Motorcycle (Honda 70) 1 58,000 58,000

Bicycle (Chinese) 1 4,000 4,000

Total Vehicle Cost 562,000

Input Requirement:

The basic raw material required for producing ice blocks is water, common salt. These raw materials are readily available in the local market. Replenishments needed during maintenance are ammonia gas and compressor oil.

Raw Material

Description 2,010 2,011 2,012 2,013

Ammonia consumption @ Rs. 21,840 24,960 28,080 31,200

Nacl consumption @ Rs. 5,950 6,800 7,650 8,500

Compressor oil for Rs. 19,600 22,400 25,200 28,000

TOTAL 47,390 54,160 60,930 67,700

Factory overhead:

a) FIXED COSTS

-Power KW 600 10 72,000

- Machinery @ 2.34% installed cost 70,241

- Building @ 1% construction cost 16,720

- Vehicles @ 5% of cost 28,100

Total Fixed cost 219,618

Water and Gas:

Equipment detail unit

Water Bore Diameter 3” – 4” 1

GAS 6

Electricity:

2012 2013 2014 2015

Electricity Expense 72,000 79,200 87,120 95,832

Technology involved:

Technology/Process Options

The machinery used for the ice plant is local. It includes compressor, condenser, water tank

suitable for 350-700 ice cans, brine agitator, accumulator for parallel supply of ammonia, craneand trolley, oil separator, ice cans of size 11” x 22” x 48”, electric motor

Merits & demerits of a particular technology

The local machinery is readily available in the market at a very reasonable price. One of the benefits of using locally manufactured machinery is availability of spare parts and it’s easier to find operators to operate these machines.

Machine Maintenance

The maintenance process starts after mid of July. Normally, it takes one month for the overhauling of plant, during which the plant is closed for one month.

Energy required to manufacture ice kWh/ton of ice made

Type of ice Temperate areaBlock 40-50

The values in Table are for icemaker machinery only.

Water

In addition to water for making ice, water may be required for cooling, as in a refrigeration plant condenser, or for heating, as in a warm water defrosting system.

The amount of water required for making ice is roughly equal to the amount of ice being produced plus some allowance for wastage and for prevention of buildup of solids in the water circulating system.

Fresh water for making ice for use with fish must satisfy the requirements for drinking water. In addition, the chemical composition of water for making ice must meet the equipment manufacturers' requirements; hard water containing excessive amounts of solids may foul the icemaker and may also yield a soft wet ice. On the other hand pure water may cause problems, particularly in flake ice plants, because the ice sticks hard to the drum; the remedy is to fit a dosing device that puts 200-500 g salt into each tons of water to improve release of the ice without making the ice detectably salty when used on fish.

It is inadvisable to use shell and tube condensers in a refrigeration system where cooling water is run to waste, unless a plentiful supply of cheap water is available, independent of the domestic drinking water supply; otherwise water costs may be prohibitive, since 15 tons of cooling water at 10°C or 60 tons at 25°C are required for each tons of ice produced. Other factors can affect cooling water consumption, and manufacturers' precise figures should be used at the detailed planning stage.

Air cooled condensers can be used on small plants, but for most commercial installations evaporative condensers, or shell and tube condensers with a cooling tower, are more likely to be supplied. Evaporative condensers and cooling tower cooling systems normally use less than 1/2 tons of water for each tons of ice, plus some small additional allowance if an overspill is necessary to prevent buildup of solids in the recirculated water.

Block ice

Tapered rectangular metal cans filled with water are immersed in a tank containing refrigerated sodium chloride brine. The dimensions of the can and the temperature of the brine are usually selected to give a 24 hour production time, and batches of cans are emptied and refilled in sequence during that period. Ice block weight can range from 12 to 150 kg depending on requirements; 150 kg is regarded as the largest size of block one man can conveniently handle. A block ice plant requires continuous attention and is labour intensive. The icemaker and the store require a good deal of floor space and impose heavy loads on the building structure. For these reasons block ice plants are going out of use, and more modern automatic plants are replacing them.

Location:

We would set up our ice plant 10-15 minutes walking distance from Bahawalpur. As ice is not easily available in this area and people of this area bears a lot of transportation expenses to get ice, so we are selecting this area to set up our ice plant.

Product’s Range and Plant Capacity:

We will be producing block ice only. The proposed project has a capacity of producing 50 ice blocks on the basis of 2 shifts of 12 hours. The maximum capacity of plant is 5000 tons per annum. Estimated capacity during:

Market Entry Timing:

The ice plant should be started up when the season begins in mid Sep and closed when it end up in mid June. The peak season is of four months i.e. from March to mid June. The rest of the period is moderate season. The best time to enter into this business is in the month of March.

Raw Material Requirement:

The basic raw material required for producing ice blocks is water, common salt. These raw materials are readily available in the local market. Replenishments needed during maintenance are ammonia gas and compressor oil.

Machinery Requirements:

The main equipment required for running the ice plant is compressor, capacitor, condenser, and electric motors, power etc

.

Name of civil contractors:

XXXXXXXXXXXXXXXX

Machinery Suppliers:

XXXXXXXXXXXXXX

Project Engineering:

The machinery of the proposed project will be purchased from any experienced engineer or a specialized ice making machine manufacturer.

Implementation Stage:Total time period for the starting of project is estimated to be 2 month year from the date of approval of finance.

Cost of the Project:

The total cost of the project is estimated to be Rs.3 millionThe fixed cost of the project is Rs. 4.50 millionwhich arefinanced locally. The amount of initial permanent net working capital required is Rs. 5 lakh.

Means of Finance:

Forty Percent (40%) of the estimated cost of the proposed project will be obtained through loan and the remaining 60%will be contributed by the Owner.

Financial Plan:

The total cost of the project is estimated to be Rs(3000000).Forty percent Rs (2.40 million)of the estimated cost of the proposedproject will be obtained through loan from Habib Bank Ltd and the remaining 60% Rs (2.60 million) will be contributed by the owner.

Implementation Schedule:

Market AnalysisTarget Customers:

The target customers for ice plant can be divided into two categories:

Domestic users, such as ice cream sellers. Second category is institutional buyers, who buy in bulk, hotels, restaurants, fish sellers,

dairy plants etc.

Description of Market:

Institutional buyers buy the bulk of the block ice production, in institutions related to food industry. Business sectors, which utilize ice in the country, include the following:For the protection of fish, Meat and also for Dairy Plants.

Other potential institutional buyers of ice are bakeries, confectioners, hotels which buy ice blocks in bulk

S.NO ACTI V I T IES MONTH YEAR

1 Order for Local Machinery may 2012

2 Arrival of Local Machinery at site June 2012

3Construction of Building and Civil Works: Start June 2012

Complete JULY 2012

4 Erection &Installation of Machinery Start MAY 2012

Complete MAY 2012

5 Order for Raw Materials APRIL 2012

6 Start of Commercial Production JULY 2012

Present Demand:

In market our production’s demand is more than200 ice blocks per day. Which is already served by our competitors, but we are having location advantage and we can take over the market.

Demand Supply Gap:

Our production of ice blocks is 50 ice blocks per day and there is demand of 200 ice blocks per day. So there is demand supply gap of 150 blocks.

Ex-factory price:

Our whole sale price is Rs. 280 per ice block

Retail price:

Our retail price is Rs. 320per ice block.

Distribution Channel:

Ice blocks are supplied to supplier through trucks, bullock cart etc.

Technical Analysis:Block ice is the most popular type of ice sold for a variety of reasons. It melts more slowly than other types of ice and thus lasts longer. It can be placed in open truck with only a tarpaulin to protect it from the elements and shipped to a location of four hours away. Its rectangular shape makes it easy to stack of up to 15 meters and store large amounts. Block ice

has merits of easy to transport and separate as well. Other types of ice have the tendency to freeze into a solid mass, making it difficult to work with.

Manufacturing Process:

Production Process Flow

Movement of Ice Blocks by hooks

Cleaning of Sheet

Steel Ice Containers

Placing of Containers

in Water Tank

Filling of Sheet Steel

Ice Containers with

Temp Reduced to –17°C to –20°C

Extracting of Ice Blocks

from Sheet Steel

Movement of Ice Blocks by hooks

Delivery of Ice Blocks

Flow Chart

Ice cans are placed in can grids and moved to beneath the filling tank which automatically fills each can with proper level of pre-cooled water and then stop. Filtered water must be used to make ice intended for human consumption. The cans are then hoisted and carried to the brine tank and immersed inside. The brine, which is a calcium chloride solution kept at a temperature of -10degree, is constantly circulated by agitator in order to keep the temperature consistent throughout the tank. Air is blown into the center of the can to induce a swirling motion. This causes any impurities and air bubbles in the water to be collected in the center of cans. Prior to finish freezing, this core is removed by a suction pump and replaced with fresh pre-cooled water. The time required for the water to be frozen varies according to the size of cans being used, 150lbs. block requires 24 hours, 300 lbs. Takes 48 hours. When the ice has completely formed, the grids are lifted up from the brine tank and moved to place in the thawing tank. Using the warm water,which heats the can until the ice allowed to be slid out. The block ice is then removed from the can by a can dumper.

Delivery of Ice Blocks

The empty cans are returned to filling tank for next ice making cycle. The ice is moved to ice storage and stacked by an ice stacker, or it can be delivered to customer right away upon requested.

List of Machinery:

Description

Ammonia Compressor (8x8) , Driven Wheel

Ammonia Condensor Atmosphere type with 2" pipe

Electric Motor 100 H.P.1450 RPM

Brine Tank for 720 Ice cans, 4mm local made

Cooling Coil V-type 4" pipe & 1800 ft

Brine Agitator 18" Fan Metal

Accumulator for parallel supply of ammonia

Crane & Trolley with Railing Channel & Girder

Ammonia Valves for Complete Plant

Ammonia Pipes for Complete Plant

Oil Separator Buffer Type

4 gauge Suction, Discharge, Oil Pressure

Wood work for Ice Cans, Tank Cover

'Ice Cans of 1.5 mm

Water Fitting Complete

Electric Motor 7.5"

Centrifugal Pump 2.5"x3"

Cooling coil Gas transfer pipe

Receiver Cool water pump

Condenser

Other Equipment

Other Equipment Details QuantityGenerator 100 KVA (Engine Bus) 1Transformer 100 KVA 1Water Bore Diameter 3” – 4” 1Total Equipment Cost

Furniture & Fixture

Description QtyTables 3Chairs 12Fans 4Lights 12Computer 1Telephone 1

Total Furniture & Fixtures

Office Vehicle

Description QtySuzuki Pick-up 1Motorcycle (Honda 70) 1Bicycle (Chinese) 1

Total Vehicle Cost

Input Requirement:

The basic raw material required for producing ice blocks is water, common salt. These raw materials are readily available in the local market. Replenishments needed during maintenance are ammonia gas and compressor oil.

Raw Material

Description 2,010 2,011 2,012 2,013Ammonia consumption @ Rs. 21,840 24,960 28,080 31,200Nacl consumption @ Rs. 5,950 6,800 7,650 8,500Compressor oil for Rs. 19,600 22,400 25,200 28,000

TOTAL 47,390 54,160 60,930 67,700

Factory overhead:

a) FIXED COSTS

-Power KW 600 10 72,000- Machinery @ 2.34% installed cost 70,241- Building @ 1% construction cost 16,720- Vehicles @ 5% of cost 28,100

Total Fixed cost 219,618

Water and Gas:

Equipment detail unit Cost/unit Total costWater Bore Diameter 3” – 4” 1 200,000 200,000GAS 6 40000 240,000

Electricity:

10% PER ANNUM.2010 2011 2012 2013

Electricity Expense 72,000 79,200 87,120 95,832

Technology involved:

Technology/Process Options

The machinery used for the ice plant is local. It includes compressor, condenser, water tanksuitable for 350-700 ice cans, brine agitator, accumulator for parallel supply of ammonia, crane and trolley, oil separator, ice cans of size 11” x 22” x 48”, electric motor.

Merits & demerits of a particular technology

The local machinery is readily available in the market at a very reasonable price. One of the benefits of using locally manufactured machinery is availability of spare parts and it’s easier to find operators to operate these machines.

Machine Maintenance

The maintenance process starts after mid of July. Normally, it takes one month for the overhauling of plant, during which the plant is closed for one month.

Personnel analysis

Factory staff:

S.NO Type of Staff Number required

Basic salary per Person, per month

Total salaries per year

1 Tank man 6 5,000 180000

2 Machine Operator

1 6000 36,000

ADMINISTRATION AND GENERAL STAFF

Description Qty Salary Monthly Annual

Salary Cost

Accounts Officer 1 7,000 7,000 42,000

Security Guard 1 6,000 6,000 36,000

Driver 2 5,000 10,000 60,000

Office Boy 1 3,000 3,000 18,000

Total Administrative Expenses 156,000

SWOT AnalysisStrengths:

The labor to manufacture ice is easily available we can reach easily to low cost labor. Moreover the location advantage for our project is very much attractive. We can avail maximum advantage from this market.

Weaknesses:

Our weakness is that we are not producing ice up to the present demand of the consumer. Because we have one unit to produced ice if we increase the plant in to 2 then we increase the production.

Opportunities:

Duration of summer doesn’t matter because the packaged food exporting business keeps on going for almost whole year and the fishing activities keeps going on for almost 7-8 months a year. Due to which demand for ice is high for more than 7 months a year. Growing market for ice plants are industries linked to food products i.e. fish, dairy, bakeries, restaurants etc. With this growing demand a large number of ice plants are operating in the country.

There are approximately 1,300 ice plants operating in the Punjab, catering to the needs of different institutional and domestic buyers. The total installed capacity of ice plants in Punjab is approximately 432,669-tons of ice blocks per day2. The need of ice blocks is increasing due to economic growth, as major buyers are institutional buyers (dairy, bakery, hotel, etc.), who buy in bulk.

Threats:

Competitive Structure of the market

The market of the ice plant is highly competitive; therefore if the entrepreneur is not well responsive and fulfilling the demand of the consumer he/she may not be able to capitalize the opportunity properly.

Selection of the wrong venue

Selection of the wrong venue can be a major hurdle in achieving the desired business objectives. The clientele taste should be properly tracked.

Conclusion & Recommendation:

The location plays an important role, as finished ice blocks should be easily accessible to dealers .

It is important that solid ice blocks are produced through proper freezing time utilization as solid ice blocks are much heavier, more transparent and provides higher price in the market.

Weather factor plays an important role, due to seasonal nature of the business i.e. In summers the demand for ice blocks increases, while after mid September the temperature starts changing & demand starts to fall, which means the entrepreneur should reduce the production according to the demand of ice.

One of the most important aspects for success of any business is minimizing the cost of production, in case of ice plant this can be achieved by proper training of workers,

which would ensure reduction in raw material wastage and better maintenance of machinery etc.

It is advisable to run the plant on natural gas, rather than electricity, as the major expense in production of ice is electricity. The use of natural gas instead of electricity will reduce the electricity expense approximately by half.

In order to sell the ice blocks, it is recommended to develop a chain of dealers who buy the ice blocks on regular basis. The dealer deposits a guarantee in the shape of cash security, keeping in view the number of blocks to be purchased on daily basis. In case the dealer is unable to pick the agreed number of blocks on a particular day, the amount is deducted from his security.

G

OOD LUCK

We wish a very best of luck to ice manufacturing plant. May it progress in this

field and achieve its desired goals.

(AMEEN)