Brick Industry

CHAPTER–I
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 today’s 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 touché 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 country’s 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 resource’s 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 year’s 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 can’t 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. That’s 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.