Brick Industry

CHAPTERI
INTRODUCTION

1.1 Background of the Study

This is the age of computerization and globalization and advanced technology
makes daily life easy and faciliable. In the beginning of human civilization,
human used to stay in the forest and they have no fixed place to stay. They
used to move one place to another place to fulfillment their needs and wants.
At that time the major needs is only foods and water. They did not have broad
knowledge as todays people. After years ago they started to live permanently
and they started to build small houses and staying together. Firstly, they made
their houses by branches of trees. They face lot of difficulties from those kinds
of houses. After that they started to build their houses by clay, mud and stone
which is seasonally effective and durable then previous. They faced a lot of
difficulties while establishing their houses. They learn a lot of thing. There after
they learn to make bricks and started to stay in the faciliable houses. From
bricks they made variety of construction like, sky touch building, bridges,
walls etc. At the initial phase it was made at household level by using hand
made frame and totally manpower used to made bricks. But slowly machines
were invented use them to products bricks and they treated as a factory. In
Nepalese history Bhaktapur Bricks Factory and Harisiddhi Bricks and Tile
Factory were established at first time with the help of Chinese Government
and Indian Government. But increasing demand and lack of sufficient supply
other lot of private bricks factory were established. One of them was Shree
Nawodurga Chimni Bricks Factory (SNCBF).

Shree Nawodurga Chimni Bricks Factory (SNCBF), a profit motive organization,
was established in 2055 B.S. with an Authorized Capital of Rs. 3 million. The
factory is located at Sipadol-8, Bhaktapur. And it covers 65 ropanies of rented
land and 6 ropanies is its own. The factory product approximately 4.5 lakhs of
bricks in one round. It has an objective of producing highly durable, reliable
and fashionable bricks.

The factory is producing of size 9 4 2 with an average weight of 2 kg.






1.1.1 Service of SNCBF
Head office is located in near by factory and branch also available in Koteswor
to make easy to the people of Kathmandu and Lalitpur. The services provided
by this Shree Nawodurga Chimni Bricks Factory (SNCBF) are, delivery goods at
the site inform by the buyer, all cost bear himself like loading and unloading
cost, oil cost, goods delivery at in the time i.e. it is punctual etc. It provides
discount provision too to buy huge amount of purchase and it is only within
the Kathmandu Valley.

1.1.2 Market of SNCBF
The market of the factory is highly concentrated within valley (namely
Kathmandu, Lalitpur, and Bhaktapur). Its main clients are individuals, private
construction companies, governmental construction companies or offices,
INGOs and NGOs.

1.1.3 Performance of SNCBF
Customers are fascinated by bricks of Shree Nawodurga Chimni Bricks Factory
by its accurate size, weight and good finishing. Big construction prefers Shree
Nawodugra Chimni Bricks Factory because of its quality and prompts services.
The most important factor is use of high quality raw materials and dedicated
workers producing high quality bricks.

1.1.4 Objectives of SNCBF
Following are the main objectives of the Shree Nawodurga Chimni Bricks
Factory (SNCBF)
To produce high quality and durable bricks.
To produce at low cost
To supply bricks continuously to the customers as per order and within time
period.
To maintain the quality of bricks and to compete in the market
To maximize the organizational profit.
To maximum provide employee facilities.
To increase employee creation and decrease unemployment.
Retain quality human resource for quality work performance and quality
product.






1.1.5 Staffing of the Unit of SNCBF

The organizational has several number of working staffs under the control of
managing directory. There are different departments for different work
function such as production, sales and distribution. Each department has its
sub-departments helping smooth operation of the organization. All the
members of the organization work within their authority and responsibility and
a good team spirit and effective co-ordination can be seen.






























1.1.6 Organizational Chart Of SNCBF

Figure No.-1
Organizational Chart








1.2 Reasons for selecting this Organization

This is the time of development and progress. Every organization plays an
important role in development of the country and countrys economy.
Development of country is not possible if there is no construction job. In our
country too, there are many companies and organizations helping for the
development of the country. SNCBF is the one of them that produces quality
goods (i.e. bricks) as development materials. SNCBF is a renowned bricks
factory and has been providing services since last 8 years. SNCBF is considered
as an one of the main bricks producer in Bhaktapur.

1.3 Objectives of the Study

The main studies of this subject are:
a) To verify the present cost of the production and find out profitability
situation of SNCBF

b) To analyze the production data of last 5 years.
c) To identify the problems in production activities.
d) To review of the Shree Nawodurga Chimni Bricks Factory
e) To analysis to cost related of the SNCBF.

1.4 Significance of the Study

This project work study is related to Shree Nawodurga Chimni Bricks Factory
(SNCBF). It provides so many important and truth matters related to its and its
marketing prospective. Adequate investment amount allocate in company,
satisfy the labour by providing various economical benefits, optimum
utilization if resources available in local area and satisfy the user of product in
the success of the factory. Hence this report writing is not only important to
student in view of T.U., requirement but also essential to following parties:

i) Labour
Labour are the human resource. It is the main part of the factory. It perform all
the task in the factory like preparing raw bricks, firing it, storing carefully,
transporting it in the local market etc. and benefits form it is consuming from
them. Therefore human resources effort make to product the bricks. They
should know the probability generation of factory in order to demand the extra
labour change.





ii) Factory
Factory should serious about the financial record in order to know the financial
strengthens and weakness. Being it is profit oriented, it has to know the
profitability situation whether it will able to meet the different economical of
financial demand from various element and part of factory. Therefore, it is
important to factory itself too.

iii) Customers
Success of any factory or product oriented companies is greatly depend on the
hand of ultimate user of destroyer of products. Without them the utility of
product will expire. In same way will not utility or uses of product
consumer/customer will not satisfy. This report writing is important to them
because high profit generate on product it will not acceptable by them. It is so,
let high cost is not on the behalf of customer welfare. Therefore it in important
to them.


1.5 Research Methodology

A descriptive and analytical research design has been applied to fulfill the
requirement of the study. Data have been interpreted through field
observation, use of the statistical tools and short interviews with the
concerned authorities.

Method of data collection
Data can be collected from difference sources and using different method.
Among variety of methodology for this report prepare primary data collection
and secondary data collection are follow:

Primary data collection
Primary data are originally data gathered by the researcher. Various
techniques can be applied for primary data collection like sampling, using
search instruments (questionnaire and observation), contact method and
other statistical tools.

Secondary data collection
The secondary data can collected in the form published data by firms,
organization etc such as reports, record, pamphlets, websites, trades,
newspaper. As for secondary data, various kind of published and unpublished
sources are used.




Tools and Techniques of Analysis
All the collected and stored data are tabulated and presented in the figures.
For this purpose, the researcher has applied both financial as well as
mathematical/statistical tools. They are as follow:
Financial tools:

Balance Sheet
Profit and loss a\c
Statistical/mathematical tools:

Charts
Graphs
Trend Lines
Pie Chart

1.6 Limitations of the Study

The reporter/ researcher had to face certain difficulties in the process of
preparation of field report:

i) This study is based on secondary data provided by SNCBF, so it is not
sufficient to analysis.
ii) This report has been prepared only to give basic knowledge about human
resource of SNCBF.
iii) It covers the data from 2060 to 65. Being lack of knowledge, the reporting
will not be as expect.
iv) Being the time constraint collection of data is insufficient.
v) The reliability of the study depends upon the data provided by the
concerned organization.











CHAPTER-II
PRESENTATION AND ANALYSIS OF DATA

This chapter is the main volume of the field work report. This is a chapter
under which collected data and information are presented and analysis with
help of tabulation, figure tools, financials tools, accounting tools and statistical
tools.

2.1 Calculation of Cost/ Bricks in Rupees of SNCBF

Table No. - 1
Calculation of Cost/ Bricks in Rupees
Particular 2060/61 2061/62 2062/63 2063/64 2064/65
Raw materials 0.4 0.5 0.55 0.6 0.8
Production 1.25 1.25 1.75 2 2.25
Other expenses 0.5 0.75 1 1.5 2.5
Total cost 2.15 2.5 3.3 4.1 5.55
Add: profit 1.05 1.2 1.55 2 2.5
Selling price 3.2 3.7 4.85 6.1 8.05
(Source: Annual Reports of SNCBF)

From the above table, the cost per bricks has increase in the year 2061/62 as
compared to that of 2060/61. This is the because of price high in raw materials
and other expenses and more added profit percentage. And also in the
following years price of bricks are more and more than the compare of the last
year. That means the selling price of the products in higher and higher then the
previous year due to the increase cost on raw materials, production cost and
other expenses and increase in profit margin. In all the year in the above table
same trend we can observe. Cost of the bricks are 3.2, 3.7, 4.85, 6.1 and 8.05 in
the years 2060/61, 2061/62, 2062/63, 2063/64 and 2064/65 respectively. In
2064/65 the price of the product is in the pick position (8.05). It is clear in the
following figure.









Figure No. - 2

2.2 Calculation of Raw Materials/ Piece in Rupees of SNCBF

Table No.- 2
Calculation of Raw Materials/ Piece in Rupee
Particular 2060/61 2061/62 2062/63 2063/64 2064/65
Soil 0.20 0.215 0.25 0.275 0.300
Sand 0.15 0.180 0.20 0.225 0.245
Water 0.05 0.105 0.10 0.100 0.255
Total cost of raw 0.40 0.500 0.55 0.600 0.800
(Source: Annual Reports of SNCBF)

From the above table, the total cost of raw materials in increasing in trend
through in five years 2060/61 to 2064/65. Thus, it tells that the cost of raw
materials is highly fluctuated (increasing trend) due to limit resource. From the
help in the graph we can clearly see the price increasing in the price of the raw
materials. We can see price in 2060/61, 2061/62, 2062/63, 2063/64, 2064/65
are 0.40, 0.500, 0.55, 0.600, 0.800 respectively, which show the increasing
trend the price of the of raw materials. Hence, it plays the important role to
the increase in the price of the product.


Figure No. - 3

Table No. - 3
Calculation of Cost Contribution to Total Cost in Fiscal Year
S.N. Items Amount In %
1 Sub raw materials 0.20 9
2 Wages/labour expenses 1.30 58
3 Administration expenses 0.30 13
4 Depreciation and repair expenses 0.20 9
5 Miscellaneous 0.25 11
2.25 100.00

(Source: Annual Report of SNCBF)

The above table is related to the production cost of the recent fiscal year (i.e.
2064/65) that contributes to the total cost of production. The above table can
be present by the following pie chart:







Figure No. - 4

2.3 Calculation of Production Cost per Unit of SNCBF

Table No. - 4
Calculation of Production Cost per Unit
Particular 2060/61 2061/62 2062/63 2063/64 2064/65
Sub raw materials 0.10 0.10 0.15 0.15 0.20
labour expenses 0.75 0.55 0.95 1.05 1.30
Administration expenses 0.25 0.25 0.35 0.40 0.30
Depreciation and repair expenses 0.10 0.10 0.15 0.15 0.20
Miscellaneous 0.15 0.05 0.15 0.25 0.25
Total Production cost 1.25 1.25 1.75 2 2.25

(Source: Annual Reports of SNCBF)





From the above table, in 2060/61 and 2061/62 the total production cost per
unit remain same (i.e. 1.25) only sub production cost is change. After that the
total production are increase in increasing trend. According to the above table
after 2062/63 the total production cost is increasing too proportionately. In
the year 2062/63, 2063/64, and 2064/65 the total production cost per unit are
1.75, 2, and 2.25 respectively. It is clearly shown in the following chart.

Figure No. - 5

2.4 Analysis of Data
Table No. - 5
Production and Sales Report
Years Size Total production (in Qty.) Total sales (in Qty.)
2060/61 9 4 2
20,25,000 16,35,000
2061/62 9 4 2
21,05,000 18,20,500
2062/63 9 4 2
23,85,000 20,20,000
2063/64 9 4 2
25,25,000 21,60,000
2064/65 9 4 2
27,30,000 24,55,000

(Source: Annual Reports of SNCBF)

Form the above table annual production and sales of a factory is being increase
in increasing trend. The sales in the year in 2061/62 have increase significantly
compared to the sales to the 2060/61. In the following year too, sales increase
in increasing trend as production increase. In the year 2062/62 to 2063/64, the
sales increase is in decreasing trend in that two year of the firm. After that
again in 2064/65 the sales in increasing in increasing trend. The effects of
quantity of production and sales have been clearly showed in the chart and
line graph.

Figure No. - 6













Figure No.- 7


2.5 Profit and Loss in Sales of Product of SNCBF

Table No.- 6
Profit and Loss in Sales
Years Total sales
(In Qty.) SPPU
(In Rs.) Total selling price (in Rs.) Total cost
(In Rs.) Profit (loss)
(In Rs.)
2060/61 16,35,000 3.2 52,32,000 35,15,250 17,16,750
2061/62 18,20,500 3.7 67,35,850 45, 51,250 21,84,600
2062/63 20,20,000 4.85 97,97,000 66,66,000 31,31,000
2063/64 21,60,000 6.1 1,31,76,000 88,56,000 43,20,000
2064/65 24,55,000 8.05 1,97,62,750 1,36,25,250 61,37,500

(Source: Annual Reports of SNCBF)

Total cost price = sales in quantity cost per quantity
Total selling price = sales in quantity selling price per quantity









According to the above table a, it clearly show that the profit earning is rapidly
growing. It means profit earning is in increasing trend. As the increase in sales
then profit earning is also increasing. The highest profit earning in among
different fiscal year is in 2064/65. The firm earns the maximum profit (Rs. 61,
37,500) on that year because price fluctuating in price in raw materials,
production cost etc. and maximum profit margin. The profit of the years,
2060/61, 2061/62, 2062/63, 2063/64 and 2064/65 are17,16,750, 21,84,600,
31,31,000, 43,20,000 and 61,37,500 respectively. Hence, we can concluded
that if quantity of sales increase then profit also increasing which is clearly
explained in the above table and following figure.

Figure No. - 8













2.6 Productivity of SNCBF

Table No. - 7
Productivity of Labour
Year Production Average no. of laborers in a year Production unit per laborers
2060/61 20,25,000 95 21,316
2061/62 21,05,000 104 20,240
2062/63 23,85,000 115 20,739
2063/64 25,25,000 128 19,727
2064/65 27,30,000 140 19,500
(Source: Annual Reports of SNCBF)

From above table it shows the productivity of the labour employed. The
productivity of labour employed has been decreasing from the fiscal year
2060/61 to 2061/62. After that in the year 2062/63 the productivity is slightly
increase in the fiscal year 2062/63. But again after that till this fiscal year
(2063/64, 2064/65) the productivity is in decreasing trend because the firm
cant able the increase the production rate as per increasing the rate of
employed. Which can clearly show in the following diagram and no. of
employees can be shown in the following line chart.

Figure No. - 9






Figure No.- 10


2.7 Net profit per unit of SNCBF


Table No. - 8
Net Profit per Unit
Year Total sales (in Qty) Total profit (in Rs.) Net profit/ unit (in Rs.)
2060/61 16,35,000 17,16,750 1.05
2061/62 18,20,500 21,84,600 1.2
2062/63 20,20,000 31,31,000 1.55
2063/64 21,60,000 43,20,000 2
2064/65 24,55,000 61,37,500 2.5
(Source: Annual Reports of SNCBF)

Net profit / unit = total profit / total sales

Form the above table, it show the net profit per unit of the firm. This means
the earning of the firm is growing. The net profit of different fiscal year is 1.05,
1.2, 1.55, 2, and 2.5 in the year 2060/61, 2061/62, 2062/63, 2063/64, and
2064/65, respectively. Hence, the net profit of the firm is increasing rate in
nature. We can clearly conclude that the net profit is in increasing trend which
is show in the chart.





Figure No. - 11






















CHAPTER-III
SUMMARY, CONCLUSION AND RECOMMENDATIONS

3.1 Summary

Shree Nawodurga Chimni Bricks Factory (SNCBF) are established in 2055 B.S.
with an authorized capital of Rs. 1.45 millions, the main objectives of to
produce highly durable and reliable brick and earn profit and increase net
profit is in increasing rate. It has provided a lot of services to the deliver the
products in different market areas and has promoted its products.

From the analysis of The Productivity Analysis, in 2060/61 cost per brick is Rs.
2.15 whereas Rs. 3.2 is selling price with generating Rs. 1.05 as profit per unit.
In the year 2064/65 the cost of brick is Rs. 5.55 and selling price is Rs. 8.05,
where profit generating Rs. 2.5 per unit. The condition shows that there is high
demand of bricks in the market. Thats why the bricks firm has make high
profit, adding more profit margins in the cost.

In 2060/61 there was 2025000 units of bricks are produce and 1635000 units
are sold in that fiscal year. 2730000 products are produce and 2455000
products are sell in the market in the fiscal year in 2064/65. This show that the
both production and selling of product are increasing trend.

The firm earn different amount of profit by making different profit margin, and
selling different units of product in different fiscal year. The profit earned in
increasing rate. In 2063/64 the firm earn Rs.43, 20,000 profits by selling 21,
60,000 unit of product with Rs. 2 is net profit per unit. Again in 2064/65 the
firm earns Rs. 61, 37,500 as a profit by selling 24, 55,000 units of products with
Rs. 2.5 net profit per unit. This two year represent that the firm earn largest
profit during the life of Shree Nawodurga Chimni Bricks Factory (SNCBF) and
the successful years of the firm.












3.2 Conclusion

From the above report, it is clear that Shree Nawodurga Chimni Bricks Factory
(SNCBF) is able to meet its objectives and goals to earn more profit. It has been
maintain its growth rate and share market with the quality products in the
competitive price in the market. It has slightly fluctuated productivity of the
labour employed but it does not effect on its goals because of better
remuneration scheme and facilities provides by the firm among in the industry.

Furthermore, from the above analysis it can be seen that production unit and
selling units are is in the increasing trend. So that by increasing in selling units
it has considerable net profit earn in this high competitive market. One of the
main achievements of Shree Nawodurga Chimni Bricks Factory (SNCBF) is
maintenance the production per cost despite scarcity labour in the market. We
can also see that selling price has played an immense role in earn more and
more profit in Shree Nawodurga Chimni Bricks Factory (SNCBF).

Finally, factory has to seek the other prospective customer and other market
for increase the market area. Limit market area is not sufficient to sale the
product and gaining the aspect of the profit. The firm consider not only making
more profit but also consider social factor too because the firm are exist in the
this society and operate in this society. So the firm sees over the social welfare
while operating. Hence, firm as to over see the welfare and senior about the
cost of production, sales of production customers wants, demand of products
and markets.



















3.3 Recommendations

We can recommend as following by analysis by above chapter II and data
presentation:

Proper Maintenance of Kiln
The firm must timely maintain the kiln in order to increase the productivity and
profit.

Motivation
From the above analysis we see in the firm we found there are no effective
motivation and leadership function. Hence, the productivity of the firm is
fluctuated (up and down) against of increasing. So the firms need to apply
above two managerial functions to increase productivity.

Focus on Finishing
For better quality and well product the firm should focus on the finishing on
the product. Only qualitative product is demanded in the market. Some
portion of the total product is found not well finished. Hence, it may be harm
for the reputation of the firm.

Additional Vehicle for Distribution
Available vehicle are not sufficient for distribution process. Therefore, the firm
should add more mini trucks for quick and effective distribution purpose.

Team Work
Coordination between production and distribution play an important role.
Which would more supported for lunching the development activity
effectively. There are found lack of coordination and team work in the firm.

Marketing and Sales
The firm should promote its sales by opening more sales office in the different
parts of the valley and by selling its product to big project which would be
more beneficial.



Social Welfare
The firm need to also consider the social factor too cause the firm established
on society and all transaction are perform in the society. Hence it works as
take beneficial to the society.
Posted by Gajendra Sinkhwalat 10:34 PMNo comments:
BIBLIOGRAPHY
BIBLIOGRAPHY
A) Books
Agrawal, G.R. (2005).Project Management in Nepal. Kathmandu: M.K.
Publisher and Distributor.
Bajrachayra, B.C. (2005). Business Statistics. Kathmandu: M.K. Publishers and
Distributers
Pant, P.R. (2002). Field Work Assignment and Report Writing. Kathmandu:
Buddha Academic Enterprises Pvt. Ltd.
Rizal, D. P. (2006). Project Management. .Kathmandu: Ratna Pustak
Bhandhar.
Shrestha, D.K. (2005). Distribution Management in Nepal. Kathmandu:
Dhaulagiri Books and Stationary.


B) Reports
Shree Nawodurga Chimni Bricks Factory (2060/61). Annual Report, Bhaktapur:
Shree Nawodurga Chimni Bricks Factory.
Shree Nawodurga Chimni Bricks Factory (2061/62). Annual Report, Bhaktapur:
Shree Nawodurga Chimni Bricks Factory.
Shree Nawodurga Chimni Bricks Factory (2062/63). Annual Report, Bhaktapur:
Shree Nawodurga Chimni Bricks Factory.
Shree Nawodurga Chimni Bricks Factory (2063/64). Annual Report, Bhaktapur:
Shree Nawodurga Chimni Bricks Factory.
Shree Nawodurga Chimni Bricks Factory (2064/65). Annual Report, Bhaktapur:
Shree Nawodurga Chimni Bricks Factory.