IUBAT: International University of Business Agriculture and Technology

IUBAT: International University of
Business Agriculture and

Technology
Department of Mechanical
Engineering.
Presented by:
2
NAME ID PROGRAM
Md. Sabbir Raza Khan 15107099 BSME
Md. Mustafizur 15107104 BSME

Rahaman
Md. Al Amin Hossain 15107105 BSME
Nadim hossen Rabbani 15107122 BSME
Saifuddin Rakib 15107115 BSME
Rakibul Hasan Rosel 15107113 BSME

3
Presentation Topic
Feasibility Study on Ball Pen

Manufacturing Plant
Contents
4
 Introduction
 Market
 Raw Material
 Process Technology
 Utility
 Location
 Environment Impact
 Investment Cost
 Operational Cost
 Profitability Analysis
 Findings
 Recommendations
 Conclusion
Introduction
5
Definition: A ballpoint pen, also known as

a biro, or ball pen, is a pen that
dispenses ink over a metal ball at its point.
Uses of Ball pen:

 A ball pen is a writing implement.
 Ball pen used to write only.
.
6 History of Ball pen
 Method of applying ink to paper has existed since the late 19th
century.
 Ballpoint pen was issued on 30 October 1888, to John J. Loud.
 Loud's pen had a small rotating steel ball, held in place by a

socket.
 In British Period Ball pen first arrived in Bangladesh.

Feasibility study of a project
7
It is a process of studying viability of a project
A feasibility study aims to objectively and rationally

uncover the strengths and weaknesses of an existing
business or proposed venture, opportunities and
threats present in the environment, the resources
required to carry through, and ultimately the
prospects for success.
Why viability study?
8
 Future is uncertain.
 Projects to be implemented in future so all projects are

uncertain.
 Each project involves an investment.
 The investor wants a return on his investment.
 The lender wants the money back.

Object of this Project
9
Broad Objective
The main objectives are to improve our theoretical
knowledge to the practical field with adequate
conceptualization and understanding the performance
of the parameters in case of beginning a new project
with the skill of analysis the viability of the project.
Specific Objective
10
The specific objectives of this report include:-

• Study on the mechanism of Ball pen.
• Modifying the existing product for eco-friendly environment.
• Identify the different types of problem of existing products and noted
it.
• Providing High power factor products in reasonable price with best
quality.
• We will strive to provide our customers with the largest selection of
ball pen verities.
• To provide the ball pen at approvable customers.
• To satisfy the customer is our priority.
• Deal with honesty and Fairness.
Methodology
11
Both primary and secondary data are being collected for the purpose of
this report:-
 Primary Data: Primary Data are collected from the books about the
project management, how the project be viable and study about the risk of
the new project.
 Secondary data: Secondary data has been collected from the online
resources, Journals and Brochures.
12
Limitation
 There are some limitation of manpower, land and also other
things.
 Since visiting cannot be proceed, so some difficulties appear

during collecting information.
 Money
.
13
Market
 Situational Analysis
 Market Survey
 Demand forecasting
 Market planning
Situational Analysis
14
Number of company 30
Employment 80,000
Major Cluster Major Cities
Ball pen demand 500 million per year
Local production 684 million per year
Market demand Tk. 25 billion per year

Market survey
15
 Total Ball Pen Demand :

 Price range between TK 4- TK 10 is 80%.
 Price range between TK.10 to above is 20%.
16
Top list of Ball pen Company In
17 Bangladeshi Market
Matador Ball pen Industries.
Olympic Industries.
Alpha Ball Pen Ind.Ltd.
Janani Ball pen Industries.
Choice Trading Pvt.Ltd.
Nipun Ball pen Industries Ltd.

Conti….
18
Matador: 36%
Olympic: 10%
Choice: 3%
Janani: 26%
Alpha: 5%
Others: 26%
Raw Material
19
Sources of Raw Materials
20
 Plastic granules Imported From

China, India, USA and other
countries.
 Metal imported from China and

some domestic refining source.
 Ink and Chemicals from china, USA.

21 Ball pan manufacturing Process
Ballpoint pens are made to order in mass quantities. While each
manufacturer makes them slightly different. The basic steps include :-
i. ink compounding,
ii. metal component formation,
iii. plastic component molding,
iv. piece assembly,
v. packaging,
vi. labeling,
vii. and shipping.
In advanced shops, pens can go from raw material to finished product in
less than five minutes.
22 Types of Ball Pen
 Simple ball Pen.

 Rollerball pens.
 Fisher Space ball Pen.
 erasable ink ball pen.
Manufacturing Technology
23
 Automatic manufacturing process.

24
Mode of transportation
 For local market we can use covered van as transportation

medium.
 We can also use our river port.
 For exporting we can use sea port.

Utility
25
 Electricity is must needed for running a manufacturing

plant. We want to setup in industrial area so easy to get
electricity.
 Gas or fuel will need if we run a generator.

Availability of utility
26
 To run this plant we need uninterrupted electricity.
 There are some power house in this area so we can get

proper utility.
 There is a four lane highway so its very easy to get

transport facility.
 So it’s a good place to set up a manufacturing plant.

Location of factories
27
The location of our project can be in the

area of Mymensingh, Gazipur. Its already a
industrial area so every utility is available and
transportation system is good.
Proximity to market
28
 Gazipur is about the center of Bangladesh and

very close to Dhaka and Savar.
 Mymenshingh is the new devision in our country

and It is near to the capital. So it can also be a
market place.
 It will be very easy to cover the local markets.

29 Manpower
 Manpower are available but Skilled

technical manpower is hardly available.
 Have to trained few engineers by other
experienced engineer.
 Proper trained engineers are good luck
for a plant.
 Extra cost for the project but give us
more benefit in future.
Environmental Impact
30
 Every industry has a bad impact on environment.
 We use underground water & it causes water crisis.
 Manufacturing plant pollute air, soil, water.
 It emit Carbone di oxide that increase temperature.

Investment Cost
31
Items Amount(Tk in million)
Land 20
Building 200
Machinery 10
Installation cost 1
Technical know how 2
Taxes and Duties 6
Depreciation 3
Interest during 5
Construction
Total 247
32
Operational cost
Items Cost (Taka in Million)

Raw materials 200
Utility 83
Manpower 50
Maintenance 10
Depreciation 5
Tax 15
TVC(Television commercial) 20
Total 363
33 Profitability Analysis
Profitability analysis can be measured in various way. Here we

calculated in three way as follows:
 B/C Ratio.
 IRR( Internal Rate of Return).
 Break-even analysis.
34
Benefit Cost Ratio
Type Amount(Tk in Million)

Investment 610
Benefit in 1st year 200
Benefit in 2nd year 200
Benefit in 3rd year 200
Benefit in 4th year 200
Benefit in 5th year 200

BCR (Benefit Cost Ratio)
𝑇𝑜𝑡𝑎𝑙 𝑑𝑖𝑠𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑏𝑒𝑛𝑒𝑓𝑖𝑡
BCR =
𝑡𝑜𝑡𝑎𝑙 𝑑𝑖𝑐𝑜𝑢𝑛𝑡𝑒𝑑 𝑐𝑜𝑠𝑡
200 200 200 200 200
+ + + +
(1+0.17)1 (1+0.17)2 (1+0.17)3 (1+0.17)4 (1+0.17)5
= 610
(1+0.17)0
639.86
=
610
=1.05
36
Payback period
𝑡𝑜𝑡𝑎𝑙 𝑚𝑜𝑛𝑒𝑦 𝑜𝑟 𝑐𝑎𝑠ℎ 𝑜𝑢𝑡𝑙𝑎𝑦

Payback period=
𝑀𝑜𝑛𝑒𝑦 𝑟𝑒𝑡𝑢𝑟𝑛 𝑜𝑟 𝑐𝑎𝑠ℎ 𝑖𝑛𝑓𝑙𝑜𝑤
610
=
200
=3.05 years
Internal Rate of Return(IRR)
37
IRR:-
200 200 200 200 200
610 = + + + +
(1+𝑟)1 (1+𝑟)2 (1+𝑟)3 (1+𝑟)4 (1+𝑟)5
By trial and error,

Say, r = 18% = 0.18
200 200 200 200 200
R.H.S = + + + +
(1+0.18)1 (1+0.18)2 (1+0.18)3 (1+0.18)4 (1+0.18)5
= 625.43 slightly greater than L.H.S

NPV = 15.43
38 IRR (con’t..)
Say, r = 19% = 0.19

200 200 200 200 200
R.H.S = + + + +
(1+0.19)1 (1+0.19)2 (1+0.19)3 (1+0.19)4 (1+0.19)5
= 611.53 slightly greater than L.H.S

NPV = 1.53
Say, r = 20% = 0.2

200 200 200 200 200
R.H.S = + + + +
(1+0.2)1 (1+0.2)2 (1+0.2)3 (1+0.2)4 (1+0.2)5
= 598.12 slightly less than L.H.S

NPV = - 11.88
39 IRR (con’t..)
Say, r = 21% = 0.21
200 200 200 200 200
R.H.S = + + + +
(1+0.21)1 (1+0.21)2 (1+0.21)3 (1+0.21)4 (1+0.21)5
= 585.20 slightly less than L.H.S

NPV = - 24.8
So, sum of the absolute value = (1.53+11.88) = 13.41
1.53
Now, IRR = 19% + = 19% + 0.11% = 19.11%
13.41
11.88
IRR = 20% - = 20% - 0.89% = 19.11%
13.41
As our IRR is 19.11% which is greater than bank loan interest 17%. So we
can easily say that our project is profitable.
40 Break Even Analysis
Figure: Break Even Analysis

41 Recommendations
By this feasibility study we can understand that ,

this project is socially, economically and technically
viable and can be taken up for implementation.
42
Have you any question ?

43
Thank you All

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IUBAT: International University of

Business Agriculture and

Md. Sabbir Raza Khan 15107099 BSME

Md. Mustafizur 15107104 BSME

Md. Al Amin Hossain 15107105 BSME

Nadim hossen Rabbani 15107122 BSME

Saifuddin Rakib 15107115 BSME

Rakibul Hasan Rosel 15107113 BSME

Feasibility Study on Ball Pen

Definition: A ballpoint pen, also known as

Uses of Ball pen:

 Ballpoint pen was issued on 30 October 1888, to John J. Loud.

 Loud's pen had a small rotating steel ball, held in place by a

 In British Period Ball pen first arrived in Bangladesh.

It is a process of studying viability of a project

A feasibility study aims to objectively and rationally

 Projects to be implemented in future so all projects are

 Each project involves an investment.

 The investor wants a return on his investment.

 The lender wants the money back.

The specific objectives of this report include:-

 Since visiting cannot be proceed, so some difficulties appear

Major Cluster Major Cities

Ball pen demand 500 million per year

Local production 684 million per year

Market demand Tk. 25 billion per year

 Total Ball Pen Demand :

Matador Ball pen Industries.

Alpha Ball Pen Ind.Ltd.

Janani Ball pen Industries.

Choice Trading Pvt.Ltd.

Nipun Ball pen Industries Ltd.

 Plastic granules Imported From

 Metal imported from China and

 Ink and Chemicals from china, USA.

 Simple ball Pen.

 Automatic manufacturing process.

 For local market we can use covered van as transportation

 We can also use our river port.

 For exporting we can use sea port.

 Electricity is must needed for running a manufacturing

 Gas or fuel will need if we run a generator.

 To run this plant we need uninterrupted electricity.

 There are some power house in this area so we can get

 There is a four lane highway so its very easy to get

 So it’s a good place to set up a manufacturing plant.

The location of our project can be in the

 Gazipur is about the center of Bangladesh and

 Mymenshingh is the new devision in our country

 It will be very easy to cover the local markets.

 Manpower are available but Skilled

 Every industry has a bad impact on environment.

 We use underground water & it causes water crisis.

 Manufacturing plant pollute air, soil, water.

 It emit Carbone di oxide that increase temperature.

Items Amount(Tk in million)

Items Cost (Taka in Million)

Profitability analysis can be measured in various way. Here we

Type Amount(Tk in Million)