PROJECT REPORT

Of

ELECTRONIC WEIGHING SCALE

PURPOSE OF THE DOCUMENT

This particular pre-feasibility is regarding Electronic weighing scale making unit.

The objective of the pre-feasibility report is primarily to facilitate potential entrepreneurs in project
identification for investment and in order to serve his objective; the document covers various aspects
of the project concept development, start-up, marketing, finance and management.

[We can modify the project capacity and project cost as per your requirement. We can also prepare
project report on any subject as per your requirement.]

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 Electronic Weighing Scales

Introduction
Electronic weighing systems are used in industries and business establishments for weighing
and segregating materials accurately for process sales. The main advantages of an electronic
weighing system when compared with mechanical weighing systems are
 Compactness and small size independent of capacity.
 Ruggedness and high dependability.
 High speed of response and rapid weighing.
 Good accuracy.
 Excellent flexibility to monitor multiple loads.
 Analog and digital with print-out facility remote indication and parallel display.
 Online processing through computer.
The electronic weighing system comprises the basic load cell, suitable signal conditioners and
output recorders/ indicators giving both the analog and digital output for further processing.
The signals from the load cell are amplified and fed to analog/digital converter, which provide
an output in the digital format for display/ printing/processing etc. The strain gauge based
load cell is the most popular weight transducer used in the electronic weighing system.

Market Potential
The total production in industrial electronic and control instrumentation is showing growth
rate every year. This product requires a good marketing set up duly backed by after sales
service facilities. If the price of the weighing scales is brought down and good after sales
facility made available, there will be sufficient demand for this item.

Specification of the Product

Product Code (ASICC) 7532

Quality and Standards IS 9281:1981
Production Capacity Qty. : 2400 Nos. per annum
Value: Rs. 4,45,24,000

2
 Basis and Presumptions

 The basis for calculation of production capacity has been taken on two shifts of 8 hrs each per

day basis on 75% efficiency.

 The maximum capacity utilization on single shift basis for 300 days a year. During first year
and second year of operations the capacity utilization is 60% and 80% respectively. The unit
is expected to achieve full capacity utilization from the third year onwards.
 The salaries and wages cost of raw materials, utilities, are based on the prevailing rates.
These cost factors are likely to vary with time and location.
 Interest on term loan and working capital loan has been taken at the rate of 12% on an
average. This rate may vary depending upon the policy of the financial institutions/agencies
from time to time.
 The cost of machinery and equipment’s refer to a particular make/model and prices are
approximate.
 The break-even point percentage indicated is of full capacity utilization.
 The project preparation cost etc. whenever required could be considered under pre-
operative expenses.
 The essential production machinery and test equipment required for the project have been
indicated. The unit may also utilize common test facilities available at Electronics Test and
Development Centres (ETDCs) and Electronic Regional Test Laboratories (ERTLs) set up by
the State Governments and STQC Directorate of the department of Information Technology,
Ministry of Communication and Information Technology, to manufacture products
conforming to Bureau of Indian Standards.

3
Technical Aspects

Process of Manufacture
The manufacturing process involves the assembly of load cell, electronic circuits and electro
mechanical hardware. Subsequently, the electronics assembly-the ICs, transistor, diodes, resistors,
capacitors transformer, coils, relays, potentiometers are assembled on PCBs as per design.
The assembled PCBs are tested for performance. Subsequently the electronics assembly along with
electromechanical assembly, hardware such as connectors/switches, terminals display, meters are
assembled and housed in a metallic / fibre / plastic case with an appealing front panel. Finally the
assembled unit is calibrated and tested as per the design specification.

Quality Control and Standards

Weighing range Upto 10 kgs.
Accuracy 0.02%
Output Digital display
(Fluorescent)
Power supply 230V, AC, 50 Hz

Production Capacity (per annum)

Quantity 2400 Nos.
Value Rs. 4,45,24,000

Motive Power 5 KVA (approx.)

4
 Pollution Control
The Govt. accords utmost importance to control environmental pollution. The small-scale
entrepreneurs should have an environmentally friendly attitude and adopt pollution control measures
by process modification and technology substitution.
India having acceded to the Montreal Protocol in Sept. 1992, the production and use of Ozone
Depleting Substances (ODS) like Chlorofluoro Carbon (CFC), Carbon Tetrachloride, Halons and Methyl
Chloroform etc. need to be phased out immediately with alternative chemicals/solvents. A notification
for detailed Rules to regulate ODS phase out under the Environment Protection Act, 1986 have been
put in place with effect from 19th July 2000.
The following steps are suggested which may help to control pollution in electronics industry
wherever applicable
 In electronic industry fumes and gases are released during hand soldering / wave soldering/Dip
soldering, which are harmful to people as well as environment and the end products. Alternate
technologies may be used to phase out the existing polluting technologies. Numerous new fluxes have
been developed containing 2-10% solids as opposed to the traditional 15-35% solids.
 Electronic industry uses CFC, Carbon Tetrachloride and Methyl Chloroform for cleaning of printed
circuit boards after assembly to remove flux residues left after soldering, and various kinds of foams
for packaging.

Many alternative solvents could replace CFC-113 and Methyl Chloroform in electronics cleaning.
Other Chlorinated solvents such as Trichloroethylene, Perchloroethylene and Methylene Chloride
have been used as effective cleaners in electronics industry for many years. Other organic solvents
such as Ketones and Alcohols are effective in removing both solder fluxes and many polar
contaminants.

Energy Conservation
With the growing energy needs and shortage coupled with rising energy cost, a greater thrust in
energy efficiency in industrial sector has been given by the Govt. of India since 1980s. The Energy
Conservation Act, 2001 has been enacted on 18th August 2001, which provides for efficient use of
energy, its conservation and capacity building of Bureau of Energy Efficiency created under the Act.
The following steps may help for conservation of electrical energy
 Adoption of energy conserving technologies, production aids and testing facilities.
 Efficient management of process/manufacturing machineries and systems, QC and testing
equipment’s for yielding maximum Energy Conservation.
 Optimum use of electrical energy for heating during soldering process can be obtained by using
efficient temperature-controlled soldering and DE soldering stations.
 Periodical maintenance of motors, compressors etc.
 Use of power factor correction capacitors. Proper selection and layout of lighting system; timely
switching on-off of the lights; use of compact fluorescent lamps wherever possible etc.

5
 Financial Aspects

Machinery and Equipments

Description Qty. Rate (Rs.) Amount
(Rs.)

Bench Drilling machine ½” 1 25,000 25,000

Digital Multi Meter (3½ digits) 3 30,000 90,000
Oscilloscope (0-20 MHz) 1 1,00,000 1,00,000
IC Tester/EPROM Programmer 1 50,000 50,000
Digital LCR Meter 1 75,000 75,000
Load Cell Simulator (Imported) 1 2,00,000 2,00,000
Portable Grinder 1 25,000 25,000
Power Supply (0-30V, 2A) 2 10,000 20,000
Standard Weights Brass LS LS 50,000
Multimeter (Analog) , UV Eraser, Variac (4A) 1,00,000
Bore well for water and water distribution 3,00,000
Total cost pl. & m/c (add 1 to 11 10,35,000
Excise, sales tax, installation and electrification @ 40% on 4,14,000
machinery and equipments
Office Furniture and Equipments 5,00,000
Tools, Dies and Equipments 2,00,000

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 (i) Total pl & M/c cost 21,49,000

Pre‐operative Expenses 3,00,000

Total fixed cost 21,49,000 + 3,00,000 2,449,000.00

B. Working Capital (per month)

(i) Salaries and Wages

Designation Qty. Rate (Rs.) Amount (Rs.)

General Manager 1 35,000 35,000
Production Manager 1 25,000 25,000
Sales and marketing team 5 15000 75,000
Finance and accounts team 3 13333 40,000
Administration, purchase and stores personnel 5 10000 50,000
Semi skilled workers 6 4000 24,000
Skilled workers 10 5000 50,000
Watchman and peon 6 3000 18,000
Total 3,17,000
Perquisites@ 22% 70.000
Total 3,87,000

(ii) Raw Material Requirements (per month)

Description Qty. unit Imp/Ind. Cost (Rs.)

Cabinet/Housing (Metal) 200 450 90,000
Capacitors+ 200 250 50,000
Fluorescent display (Imp.) 200 1500 3,00,000
Integrated circuits (Imp) 200 1500 3,00,000
Load cell (strain gauge)(Imp) 200 5000 10,00,000
Mechanical hardware 200 600 1,20,000

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 Noise Filter (Imp) 200 250 50,000
PCB 200 450 90,000
Rectifier (Imp) 200 160 32,000
Resistors (Diodes and switches) 200 300 60,000
Transformer 200 150 30,000
Transistors 200 200 40,000
Wires and cables. Connectors, consumables, Packing 200 500 1,00,000
materials, etc.
Total 22,62,000
(iii) Utilities (per month)

(Rs.)
Power 15,000
Water 2,000
Total 17,000
(iv) Other Contingent Expenses (per month)
(Rs.)

Advertisement 1,00,000
Conveyance expenses 25,000
Transport and packaging 40,000
Misc. expenses 50,000
Postage and stationery 5,000
Traveling expenses 1,00,000
Repair and maintenance 5,000
Insurance and taxes 9,000
Total 3,34,000

Working Capital (per month) (i + ii + iii + iv) Rs.3,87,000 + Rs. 22,62,000 + Rs. 17,000 + Rs. 3,34,000

Rs. 30,00,000

Working Capital (for 3 month) Rs. 90,00,000

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 Financial Analysis
Cost of Production (per annum) (Rs.)

Depreciation on pl. & m/c @ 10% 1,45,000

Depreciation on office furniture & tools @ 20% 1,40,000
Depreciation on civil construction 4,25,000
Recurring expenditure 3,60,00,000
Interest on capital investment @ 12% 28,14,000
Total 3,95,24,000
Turnover (per annum)
2400 Nos. of Electronic weighing scales upto 10 kgs @ Rs. 9500 each Rs. 4,45,24,000

Profit (per annum) (Before Taxes)

(Rs.)

Rs. 4,45,24,000 - Rs. 3,95,24,000

Rs. 50,00,000

Net Profit Ratio

Profit (per annum) x 100

-------------------
Sales (per annum)

50,00,000 × 100

3,95,24,000

12.65%

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 Rate of Return

Profit (per annum) ×100

-------------------
Total capital investment

50,00,000 × 100

2,34,49,000

21.3%

Break‐even Point
Fixed Cost (per annum) (Rs.)

Total Depreciation 7,10,000

Interest on capital investment @12% 20,14,000
40% Salaries and wages 15,22,000
40% of other contingent expenses 16,03,000
Total 58,49,000

B.E.P Fixed cost ×100

----------------------------
Fixed cost + Profit
58,49,000× 100
58,49,000+ 50,00,000
53.9%

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 DISCLAIMER

The views expressed in this Project Report are advisory in nature. SAMADHAN assume no
financial liability to anyone using the content for any purpose. All the materials and content
contained in Project report is for educational purpose and reflect the views of the industry
which are drawn from various research material sources from internet, experts, suppliers and
various other sources. The actual cost of the project or industry will have to be taken on case
to case basis considering specific requirement of the project, capacity and type of plant and
other specific factors/cost directly related to the implementation of project. It is intended for
general guidance only and must not be considered a substitute for a competent legal advice
provided by a licensed industry professional. SAMADHAN hereby disclaims any and all
liability to any party for any direct, indirect, implied, punitive, special, incidental or other
consequential damages arising directly or indirectly from any use of the Project Report
Content, which is provided as is, and without warranties.