(3) Let's Know About - MANUFACTURING.

What is Manufacturing?

Manufacturing is the making of goods by hand or by machine that upon completion the business sells to a customer. Items used in manufacture may be raw materials or component parts of a larger product. The manufacturing usually happens on a large-scale production line of machinery and skilled labor.

Types of Manufacturing Processes

Manufacturing is a very simple business; the owner buys the raw material or component parts to manufacture a finished product. To function as a business the manufacturer needs to cover costs, meet demand and make a product to supply the market.

A factory operates one of three types of manufacturing production:

• Make-To-Stock (MTS) – A factory produces goods to stock stores and showrooms. By predicting the market for their goods, the manufacturer will plan production activity in advance. If they produce too much they may need to sell surplus at a loss and in producing too little they may miss the market and not sell enough to cover costs.
• Make-To-Order (MTO) – The producer waits for orders before manufacturing stock. Inventory is easier to control and the owner does not need to rely as much on market demand. Customer waiting time is longer though and the manufacturer needs a constant stream of orders to keep the factory in production.
• Make-To-Assemble (MTA) – The factory produces component parts in anticipation of orders for assembly. By doing this, the manufacturer is ready to fulfil customer orders but if orders do not materialize, the producer will have a stock of unwanted parts.

Keeping Risks Under Control is Key

With all three types of manufacturing there are risks. Supply too much and you flood the market, causing a drop in price and a drop in profits. By not meeting demand, the customer may go elsewhere with a drop in sales for the manufacturer. Quality control is also a big factor in successful manufacturing. The manufacturer will need to keep a close eye on quality of product from beginning to end, with many tests along the way. If mistakes happen, the long-term consequences may be serious.

A manufacturing business may need many parts for the complicated assembly of a quality product or just the few for making a simple good.  Keeping production costs to a minimum, having good quality control and excellent sales management are key to reducing the risk in any type of manufacturing.

(f) SOAP MANUFACTURING

Soap is a combination of animal fat or plant oil and caustic soda. When dissolved in water, it breaks dirt away from surfaces. Through the ages soap has been used to cleanse, to cure skin sores, to dye hair, and as a salve or skin ointment. But today we generally use soap as a cleanser or perfume.

The exact origins of soap are unknown, though Roman sources claim it dates back to at least 600 B.C. , when Phoenicians prepared it from goat's tallow and wood ash. Soap was also made by the Celts, ancient inhabitants of Britain. Soap was used widely throughout the Roman empire, primarily as a medicine. Mention of soap as a cleanser does not appear until the second century A.D. By the eighth century, soap was common in France, Italy, and Spain, but it was rarely used in the rest of Europe until as late as the 17th century.

Manufacture of soap began in England around the end of the 12th century. Soap-makers had to pay a heavy tax on all the soap they produced. The tax collector locked the lids on soap boiling pans every night to prevent illegal soap manufacture after hours. Because of the high tax, soap was a luxury item, and it did not come into common use in England until after the tax was repealed in 1853. In the 19th century, soap was affordable and popular throughout Europe.

Early soap manufacturers simply boiled a solution of wood ash and animal fat. A foam substance formed at the top of the pot. When cooled, it hardened into soap. Around 1790, French soapmaker Nicolas Leblanc developed a method of extracting caustic soda (sodium hydroxide) from common table salt (sodium chloride), replacing the wood ash element of soap. The French chemist Eugene-Michel Chevreul put the soap-forming process (called in English saponification) into concrete chemical terms in 1823. In saponification, the animal fat, which is chemically neutral, splits into fatty acids, which react with alkali carbonates to form soap, leaving glycerin as a byproduct. Soap was made with industrial processes by the end of the 19th century, though people in rural areas, such as the pioneers in the western United States, continued to make soap at home.

Raw Materials

Soap requires two major raw materials: fat and alkali. The alkali most commonly used today is sodium hydroxide. Potassium hydroxide can also be used. Potassium-based soap creates a more water-soluble product than sodium-based soap, and so it is called "soft soap." Soft soap, alone or in combination with sodium-based soap, is commonly used in shaving products.

Animal fat in the past was obtained directly from a slaughterhouse. Modern soapmakers use fat that has been processed into fatty acids. This eliminates many impurities, and it produces as a byproduct water instead of glycerin. Many vegetable fats, including olive oil, palm kernel oil, and coconut oil, are also used in soap making.

Additives are used to enhance the color, texture, and scent of soap. Fragrances and perfumes are added to the soap mixture to

The above illustrations show the kettle process of making soap.

cover the odor of dirt and to leave behind a fresh-smelling scent. Abrasives to enhance the texture of soap include talc, silica, and marble pumice (volcanic ash). Soap made without dye is a dull grey or brown color, but modern manufacturers color soap to make it more enticing to the consumer.

The Manufacturing Process

The kettle method of making soap is still used today by small soap manufacturing companies. This process takes from four to eleven days to complete, and the quality of each batch is inconsistent due to the variety of oils used. Around 1940, engineers and scientists developed a more efficient manufacturing process, called the continuous process. This procedure is employed by large soap manufacturing companies all around the world today. Exactly as the name states, in the continuous process soap is produced continuously, rather than one batch at a time. Technicians have more control of the production in the continuous process, and the steps are much quicker than in the kettle method—it takes only about six hours to complete a batch of soap.

The Kettle Process

Boiling

• 1 Fats and alkali are melted in a kettle, which is a steel tank that can stand three stories high and hold several thousand pounds of material. Steam coils within the kettle heat the batch and bring it to a boil. After boiling, the mass thickens as the fat reacts with the alkali, producing soap and glycerin.

Salting

• 2 The soap and glycerin must now be separated. The mixture is treated with salt, causing the soap to rise to the top and the glycerin to settle to the bottom. The glycerin is extracted from the bottom of the kettle.

Strong change

• 3 To remove the small amounts of fat that have not saponified, a strong caustic solution is added to the kettle. This step in the process is called "strong change." The mass is brought to a boil again, and the last of the fat turns to soap. The batch may be given another salt treatment at this time, or the manufacturer may proceed to the next step.

Pitching

• 4 The next step is called "pitching." The soap in the kettle is boiled again with added water. The mass eventually separates into two layers. The top layer is called "neat soap," which is about 70% soap and 30% water. The lower layer, called "nigre," contains most of the impurities in the soap such as dirt and salt, as well as most of the water. The neat soap is taken off the top. The soap is then cooled. The finishing process is the same as for soap made by the continuous process.

Developed around 1940 and used by today's major soap-making companies, the above illustrations show the continuous process of making soap.

The Continuous Process

Splitting

• 1 The first step of the continuous process splits natural fat into fatty acids and glycerin. The equipment used is a vertical stainless steel column with the diameter of a barrel called a hydrolizer. It may be as tall as 80 feet (24 m). Pumps and meters attached to the column allow precise measurements and control of the process. Molten fat is pumped into one end of the column, while at the other end water at high temperature (266°F [130°C]) and pressure is introduced. This splits the fat into its two components. The fatty acid and glycerin are pumped out continuously as more fat and water enter. The fatty acids are then distilled for purification.

Mixing

• 2 The purified fatty acids are next mixed with a precise amount of alkali to form soap. Other ingredients such as abrasives and fragrance are also mixed in. The hot liquid soap may be then whipped to incorporate air.

Cooling and finishing

• 3 The soap may be poured into molds and allowed to harden into a large slab. It may also be cooled in a special freezer. The slab is cut into smaller pieces of bar size, which are then stamped and wrapped. The entire continuous process, from splitting to finishing, can be accomplished in several hours.

Milling

• 4 Most toiletry soap undergoes additional processing called milling. The milled bar lathers up better and has a finer consistency than non-milled soap. The cooled soap is fed through several sets of heavy rollers (mills), which crush and knead it. Perfumes can best be incorporated at this time because their volatile oils do not evaporate in the cold mixture. After the soap emerges from the mills, it is pressed into a smooth cylinder and extruded. The extruded soap is cut into bar size, stamped and wrapped.

Byproducts

Glycerin is a very useful byproduct of soap manufacture. It is used to make hand lotion, drugs, and nitroglycerin, the main component of explosives such as dynamite.

(e) PROJECT PROFILE ON MUSTARD OIL

NAME OF THE PRODUCT          :    MUSTARD OIL.

PRODUCT CODE                          :    211001023.

QUALITY & STANDARD            :    PFA regulation is mandatory.‘Ag Mark’ for quality products.ISI                                                                                      Specification   for Mustard Oil  is IS:546:1975.

PRODUCTION CAPACITY                  : (Per Annum)      Item                        Quantity            Value

                                                                                 Mustard Oil           134             

                                                                                                                                Rs.122.30 L

                                                                                 Mustard Oil Cake  230 MT

(I)     INTRODUCTION

Oil  seed  crops  occupy  an  important  place  in  the  agriculture  and industrial economy of the country. India is perhaps the only country in the  world  having  the  largest  number  of  commercial  varieties  of  oil seeds.  Mustard  Oil  is  also  one  of  the  major  oil  seeds  from  which edible  oil  is  produced.  In  Northern  &  Central  India,  it  is  medium  of cooking food. Besides it is also used in preparation of Pickles. The Mustard Oil Cake ( By Product) is used as cattle feed.

(II)    MARKET:

It  has  enormous  demand  as  one  of  the  edible  oils  and  used  as cooking medium especially in northern, eastern and north eastern of India. The demand of Mustard Oil is increasing with the time. Refined Ghani, filtered, double filtered mustard oil have given new thrust to its market. Due to consumption in household and in pickle industries it appears to be good scope for establishing mustard oil industry.

(III)   BASIS & PRESUMPTIONS:

1.  This project is based on single shift basis and 300 working days in a year.

2.  The cost of machinery & equipment/materials indicated refer to a particular make and the prices are approximate to these prevailing in the market at the time of preparation of this profile.

3.  Depreciation has been taken as an –

     a) On Machinery & Equipment @ 10%

     b) On Office Furniture & Fixture @ 20%

4.  Interest on Total Capital Investment has been taken @ 12% per annum.

5.  Minimum 40% of the total investment is required as margin money.

6.  Pay back period of the project will be 7 years, with half yearly installments.

7.  Break Even Point has been calculated at the full capacity utilization.

8.  For smooth functioning of unit it is suggested that unit should have a good stock of quality raw material (mustard seed).

9.  The yield of mustard oil, mustard oil cake and wastage (stone/dust) have been taken as 35%, 60% & 5% based on raw mustard seed.

(IV)  IMPLEMENTATION SCHEDULE:

The following steps involves in the implementation of the project. a) Selection of site.

b) Form ownership. c)  Feasibility report.

d) Registration with DIC, PFA etc. e) Arrangement of finance.

f)Construction of Factory Shed & Building. g) Plant Erection & Electrification.

h) Recruitment of manpower.

i)Arrangement of raw materials including packaging materials. j)Selection of marketing channel.

k)  Miscellaneous work ie.  Power and Water connection, Pollution control board clearance etc.

Normally 6 months is required to implement the project.

(V)   TECHNICAL ASPECTS:

a) Production details & process of manufacture:

The seeds are to be dried in sun and then they are to be cleaned by shakers to remove dust and foreign materials.   The seeds are initially  steamed  and  then  passed  through  the  expeller  and  the process  is  repeated  till  the  maximum  oil  is  extracted  out  of  the seeds.  The  filtered  oil  is  filled  in  to  the  containers,  which  are subsequently  sealed  and  labeled  for  marketing.  On  an  average around 35% recovery of oil from the seed is made.

b)   Quality Specification-

The  quality  of  seeds  should  conform  at  least  to  the  quality  and standard  laid  down  in  P.F.A.  Act.  However,  for  better  marketing the standards may be maintained as per ‘AGMARK’ specification. The  ISI  specification  is  No.  IS-546-1975  (2nd    revision).     The entrepreneur  may  approach  the  appropriate  authorities  to  get

‘AGMARK’ or ISI specification for better marketing of the product.

c)    Production Capacity (per annum)-

The estimated production capacity per annum is as follows -

ITEM                                            Qty.                             Value (Rs. Lakhs )

Mustard Oil                            134.0 M. T.

Mustard Cake                        230.0 M.T.                          102.31 Lakhs

Total:                                           Rs. 122.30 Lakhs

d)   Power requirement- 30 KW

e)    Pollution Control:

Entrepreneur  is  advised  to  contact  State  Pollution  Control  Board for detailed guidance directly.

(VI)  FINANCIAL ASPECTS

Fixed  Capital-

A.   Land & Building –

Built up Area  - 200 Sq. Mtrs.             Rented          @ Rs. 6,000/-P. M. (Processing Hall, Store etc.)

B.  Machinery & Equipment-

Sl.No.         Description                            Qty.        Rate(Rs.)             Amount(Rs. In Lakhs)    

 1.     Oil Expeller with Single Steel            2 Nos.        1,60,000/-                   3.20

             gear Set size 27” X 5”

 2.     Filter press frame type                      1 No.           55,000/-                     0.55

             14” X 14” X 14’ plates plunger

              pump and filler cloth.

 3.    Oil Storage Tank                                3 Nos.        10,000/-                     0.30

 4.    Electronic Weighing Scale                 1 No.          20,000/-                     0.20

 5.     Misc. equipment & Tools such               -                 LS                          0.20

          as weighing Scale  Can Sealing 

       machine, Box stamping machine etc.

 6.    Electrical Accessories:Electric                                   LS                         0.70

           Meter 15 HP ( 2 Nos.)

           Starter, Switch & others

                                                                 TOTAL:    Rs. 5.15 lakhs

C. Electrification, Installation, Packaging, Taxes,           Rs. 0.52

LakhsForwarding charges etc. @ 10%

               D. Office furniture & fixtures                                            Rs. 1.00

                         Lakhs

E. Preliminary & pre-operative expenses                       Rs. 0.50

                   Llakhs

(VII)                                                                                 Total Fixed

Investment                                                          Rs. 7.17lakhs

(VIII)                                                                     WORKING CAPITAL (per month):

Recurring Expenses (Per Month):

 a. Personnel                                                                               Rs. 0.31 Lakh

 b. Raw material                                                                          Rs. 8.36 Lakh c.             c. Utilities                                                                                    Rs. 0.30 Lakh   d. Other Expenses                                                                     Rs. 0.14 Lakh

                                                                                   Total:        Rs. 9.11 lakh

 Working Capital (3 months of recurring expenses)     =  Rs.27.33 lakh

                                         

(d) LEATHER BELT MANUFACTURING

Leather belt manufacturing process is simple. The manufacturing operation doesn’t demand a lot of space. Leather belts are made in different widths and lengths to suit customers of all age groups and build. The leather used is plain or chrome tanned cowhides of even substance in different colours and shades of mainly black and brown. The buckles used are in different attractive designs and plated. They are detachable and fitted as per customer’s choice. A leather belt manufacturing unit with single shift operation and taking 25 working days in a month is a financially viable project for entrepreneurs.

Market Potential For Leather Belt Manufacturing Business

In India, leather industry is in a predominant position with substantial export revenue generation and thereby providing economical growth. Indian leather industry is one among the top 8 industries for export revenue generation in India, holding 10% of the global raw material, and 2% of the global trade. India enjoys competitive benefits such as availability of abundant raw material, cheap and skilled labor, supporting institutions for industrial developments, and supportive domestic market.

A recent survey states that India has the largest livestock in the world. Moreover, the country possesses the largest population of buffaloes, goat, and sheep. India also has the world’s largest technically trained manpower in leather craft, which enables it to surpass its competitors in the global market. The major markets for Indian Leather & Leather Products are Germany with a share of 12.32%, the USA 11.83%, U.K. 11.57%, Italy 7.76%, France 5.72%, Hong Kong 6.50%, Spain 5.41%, Netherlands 3.46%, China 2.99%, Denmark 1.29%, UAE 4.3%, Belgium 1.68%.

Registration & License

You will need to obtain following registrations and license:

1. Business registration with ROC
2. Trade License from Municipal Authority
3. Udyog Aadhaar MSME Registration
4. IEC Number or Export License from Directorate General of Foreign Trade (DGFT) if you want to export leather belts from India.

Leather belt manufacturing unit does not create any kind of pollution and as such there is no need to take any preventive measures for pollution control.

 Manufacturing Machine & Raw Material

1. Strap cutting machine power operated
2. Upper Leather skiving machine
3. Single Needle flatbed Industrial Sewing Machine 31 ND 15 Merrit
4. Side creasing machine
5. Hand tools and other necessary equipment.

The major raw materials are chrome tanned upper leather and split upper. Other required materials are the buckle, thread, solution etc. Additionally, you will also need to arrange the packaging consumables.

Leather Belt Manufacturing Process

After selecting the right leather, cut the belts of different sizes by strap cutting machine. Additionally, skive it from the edges. Similarly, cut the lining of the same sizes of required leather. Then, fold the skived edges. Then the lining attached by paste. After pasting the belts, stitch them with help of stitching machine. Additionally, trim the excess of lining properly. Then carry out the other operations like buckle attaching edge setting punching according to the design. Finally, inspect the belts properly and then pack.

Finally, you must maintain the quality control and standards in leather belt manufacturing. Basically, you must procure the good quality raw materials, select appropriate designs and perform strict supervision during the manufacturing process.

(c) CARTOON BOX MANUFACTURING BOX

The Packaging Box Manufacturing Business it doesn’t demand any specific educational background But it is having a great business opportunity for whom having experience and knowledge of commercial packaging system which is a plus point.

 Packaging box comes with customized size and shape according to a requirement which is made with 3-ply, 5-ply, 7-ply etc variety of paper.

Printing and advertising on packaging box is beneficial also it can be recyclable Packaging box is used in different sectors in good and every household items

This article helps you in getting a basic guide to starting a packaging box manufacturing business.

1.           Cardboard Cartoon Box Making Business Plan

The box making is a predictable part of manufacturing sectors used to package finished goods for transportation and handling

Cartoon box have good printing, holding capacity which attracts customers on another side it is the cheapest packaging material which will good for industries that buy cartoon box for packaging purpose

The packaging box is recyclable which a considerable eco-friendly factor is so there is an increasing preference to paper made cartoon box for their alternative product such as polybag or plastic packaging

Box is easily folded so you can store it when there is no need of a box

Industrialization is expected to increase trade activities in this region which will help to increase demand for cartoon box you can get major buyers

2. Packaging Box Manufacturing Business License

For starting a packaging box manufacturing business you will need to have Trade License which you will allow from local authorities

 1) Registration of Firm: You may start the small to medium
  Packaging Box Manufacturing Business either a Proprietorship or Partnership Firm.

  If you are starting this Packaging Box Manufacturing Business as One Person Company, then you have to    register your firm as a proprietorship.

 For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd.     Company with Registrar of Companies (ROC).

 2) GST Registration: After GST rule every business holder need to get GST number so you have to   apply  for GST Registration and Sale Tax Registration

 3) Trade License: obtain trade license from local authorities.

 4) Pollution Certificate: Apply for Pollution Contrail License that you will get from Consent to                 Establish

 5) MSME/SSI Registration: MSME Udyog Aadhaar Online Registration It will help you in getting     Government grants and subsidies.

 6) Trade Mark: Secure the brand with Trade Mark

  You have to apply for SSI Unit Registration.

3. Raw Material

The main raw material for packaging box making is craft paper so you need to gather good quality of craft paper from a supplier

Quality of craft paper is to determine the quality of packaging box there are several packaging boxes you can manufacture as per your customer requirements which include cartoon box, export box, silver-coated box, etc

Other than craft paper there are several raw materials are used in making of cartoon box that is listed below

List Of Corrugated Box Making Raw Material

• ·         Coloured Inks
• ·         Corn Starch
• ·         Paraffin Water
• ·         Powdered Glue
• ·         Printing Patterns
• ·         Wax

5. Packaging Box Manufacturing Machine

Regular apparatus utilized incorporates the flexo wax covering machines and kick the bucket cutting machines.

Great quality control strategies are important to decide the nature of the Kraft paper. Box spaces are painstakingly fed into the flexo machine to get the correct consistency.

It is smarter to obtain the hardware from a rumoured and set up an organization

List of Packaging Box Manufacturing Machine

a)      Board Cutter

b)      Corrugators

c)      Die- Cutting Machine

d)      Eccentric Slotter

e)      Flexo Printing Machine

f)       Generator Set

g)      Gluing Machine

h)      Pressing Machine

i)        Printing Machine

j)        Rotary Cutting & Creasing Machine

k)      Sheet Pasting Machine

l)        Single Face Corrugating

m)    Stitching Machine

n)      Variable Frequency Drive

7. How to sell corrugated boxes

First, you have to find out a potential customer for your cartoon making box than deal with the better appearance of the box they already using for packaging

Also, get connected with local retailers here we listed some sector where you can sell your product

1. ·         Automobile Parts
2. ·         Chemicals
3. ·         Electronics Good
4. ·         Food Product
5. ·         Footwear
6. ·         Glassware
7. ·         Household Appliances
8. ·         Medicinal Use
9. ·         Tobacco Products
10. ·         Textile Goods

How To Sell Box Online

Make the online presence of your Packaging Box Manufacturing Business by getting online registration with other online hosting sites

 Websites:

Register your cardboard box making business on B2B websites like

• ·         Alibaba
• ·         Indiamart
• ·         Tradeindia
• ·         Exportersindia

Where you can sell your product on  bulk orders.

Websites:

Register your cardboard box making business on B2C websites like

• ·         Amazon
• ·         Flipkart
• ·         Snapdeal

Where you can sell your product directly to the customer.