A feasibility study for a block factory is one of the most frequently asked questions by those interested in establishing a cement block factory. Demand for cement blocks has increased worldwide due to their ease of manufacture and reasonable prices.
It is also one of the most profitable projects, and it is one of the projects that can be implemented easily, as it does not require a large capital at the beginning compared to other projects.
Block factory feasibility study
To ensure the success of the project, a thorough and accurate feasibility study must be conducted to avoid any possible losses, as follows:
1- Project location
At the beginning of the project, the appropriate location must be chosen. The location must be spacious enough to accommodate the project equipment and also have a place to dry and store the product.
2- Preparing the project
You must choose the equipment needed for the project. There are many types and brands of equipment, so you must choose the best one in terms of price and quality. The most important of these pieces of equipment are:
- Raw material tank.
- Conveyor belt for transporting raw materials.
- A mixer for mixing materials, and a belt for transporting the mixture.
- Cement silo.
- Block and interlock machine with one or two buckets depending on the customer's choice. There are robots to collect full and empty pallets.
- A trolley for transporting products if the factory is semi-automatic.
- Providing molds of different sizes and shapes to manufacture all shapes and types of blocks and interlocking molds.
3- Cost of the block factory project
The cost of a block factory project varies according to several factors, including the following:
- How to operate the machine, whether it is manual or automatic.
- The price rises if the production capacity is high.
- The customer can choose the equipment he wants to purchase and thus determine the price.
4- The purpose of the factory
When studying the feasibility of a block factory, the goal must be set. This goal is to work hard to advance and develop the factory, ensuring the best products are offered and marketed effectively. After this goal is achieved, a new goal is set, such as producing a new type and working to market it.
5- Action Plan
Objective: To develop the factory to produce new products, and to open new markets for the product until it reaches full production capacity.
(6000 blooms per shift or 15,000 for two shifts)
(Phase 1) produces 2100-3000 blocks per day in one shift.
Production is according to market needs (size 15 cm or 20 cm), so the average production is 2500 20 cm blocks every 3 days a week, and the average production is 2500
Block 15cm in 3 days a week.
The type of production must be modified according to market needs.
In one week, 7500 blocks of 20 cm, and 7500 blocks of 15 cm, the cost becomes 7500 x 4.5 = 33750 pounds, 7500 x 3.5 = 26250 pounds, including delivery service.
6- Private financial analysis
Financial analysis is very important for conducting a feasibility study for an integrated block factory. The analysis consists of:
- Wages received by employees and workers.
- Operating cost.
- Calculating the monthly expenses without calculating the cost of materials.
- Full day cost.
- Daily wages of workers.
7- Competition with others
You should know that competition begins from the very beginning of your project, and it is with all factories similar to yours. They may lower their prices, in which case you must sell at the same prices. You must also do the necessary advertising for your factory so that you can achieve success and expand the factory.
8- Number of workers
One of the most important elements to consider when conducting a feasibility study for a block factory project is the need for a very large number of workers within the factory, up to 40 workers, 7 technicians, and 4 maintenance engineers. They must have extensive experience in this field. You will also need accountants, marketing managers, and legal affairs officers.
Factory weekly budget
The weekly budget increases or decreases depending on the price of materials and the volume of work, which is:
- 3 sand dumpers x 1200 = 3600.
- 3 gravel dumper x 1200 = 3600
- 10 tons of cement arrived = 15,000.
- Has been run = 2100.
- Cost of 200 pills x 6 days = 1200
- Wages of 5 workers x 6 days = 1200.
Campaign = 26700
The weekly budget is submitted to the accountant at the beginning of the week and must be settled at the beginning of the week before receiving the new budget.
The importance of the block factory project
It is considered one of the most important projects in architecture and construction. The importance of the project is due to the following reasons:
- There are no complications in implementing the project.
- Ease of starting the project.
- It doesn't take much money to set up.
- Investors and contractors are turning to this type of product.
- The project can be developed very quickly.
- All the equipment needed for the project is available in the market.
Conditions for opening a block factory
Block factories are a good project and are highly sought after by investors. To establish a factory, there are a number of conditions that must be met, as follows:
- Electro-hydraulic machine unit: The place where the machine parts are assembled. The processing unit is designed according to the commands it receives from the user, with protection using instant stop buttons in case of emergency. A circuit breaker is installed for each motor.
- Resistant to leakage of raw materials: The rubber floor of the strip consists of 4 layers, and its thickness is 8 mm, with 3 stirring cylinders with a diameter of 6 mm. It is operated by a motor and transmission, and the motor power is approximately 2.2 kW.
- Production car: The production car transports the cement blocks and paving blocks released from the press to the drying yard.
- Cement Block and Paving Block: Production of various molds of cement blocks and paving blocks with high quality and great sensitivity, which is required by manual block factory.
- Block machine: It is one of the small block machines and it is characterized by the following:
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- Ease of use due to the high performance of the vibrating device.
- Ease of work by filling the mixture inside the mold.
- Production team: It consists of eight people as follows:
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- Person to machine.
- Person for blender.
- Three people for production vehicles.
- Person for garage.
- Two people to fill.
Block factory profits
The cost of producing 70 blocks (average) is 500 kg of sand and 500 kg of gravel, in addition to a bag of cement. 20+20+67.5=107.5, let’s assume 110.
The minimum selling price is 3.5 for the block 70 x 3.5 = 245.
If the profit percentage in one block is 245-110= 135 ÷ 70 = 1.9
Factory expenses on day 1460 if 1460 ÷ 1.9 = 769.
If 770 blocks are manufactured per day to avoid a loss (not counting the depreciation of the machines), the production and marketing of 800 blocks per day must be reduced to avoid a loss. Any block above 800 has a profit of 1.9.
Production materials per week 26700 x 4.2 weeks = 112140 per month.
(The cost of producing 30,000 20 cm blocks and 30,000 15 cm blocks in a month) If the targeted 60,000 blocks are produced in a month, 800 x 30 = 24,000 blocks are deducted as monthly costs.
There are 36,000 blocks remaining, with a net profit of 1.9. The calculation is as follows: 36,000 x 1.9 = 68,400 pounds, and this is the net profit.
Thus, we have explained the feasibility study for a block factory. The block industry is considered one of the most important industries, as it is used in urban and construction projects in all residential and industrial sectors that require cement products.
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