Fast production of HCB Business proposal 2012

CHPTER ONE
1. Introduction
Nowadays concrete blocks are very common and time proofed, earthquake resistant walling materials.
Concrete blocks can be produced by hand and by machine. The specific use of a concrete block defines its
size and the quality. One type of concrete blocks is Hollow Blocks. Hollow Blocks have better thermal
properties than solid blocks of the same material and total thickness.
A concrete block is primarily used as a building material in the construction of walls. It is sometimes
called a concrete masonry unit (CMU). In use, concrete blocks are stacked one at a time and held together
with fresh concrete mortar to form the desired length and height of the wall.

The first hollow concrete block was designed in 1890 by Harmon S. Palmer in the United States. After 10
years of experimenting, Palmer patented the design in 1900. Palmer's blocks were 8 in (20.3 cm) by 10 in
(25.4 cm) by 30 in (76.2 cm), and they were so heavy they had to be lifted into place with a small crane.
By 1905, an estimated 1,500 companies were manufacturing concrete blocks in the United States.

In other parts of the world, nowadays concrete blocks are very common and time proofed, earthquake
resistant walling materials. Concrete blocks can be produced by hand and by machine. The specific use of
a concrete block defines its size and the quality. One type of concrete blocks are Hollow Blocks. Hollow
Blocks have better thermal properties than solid blocks of the same material and total thickness.

Hollow blocks have certain advantages over bricks; they are only about 1/3 of the weight of the same
number of bricks. They can be laid about four times more rapidly and are of ample strength for all
purposes for which ordinary bricks are used. They have the advantages of hollow walls as regards
insulation against heat and sound. Moreover the production of concrete blocks is more environmentally
friendly than the production of clay bricks because they do not have to be burned.

1.2 General company description

Fast production of hallow concrete blocks are established by the willing, interesting, and respect among
ours. The other factors we select based on several reason:-

 Easy to establish
 Division of profit
 Tax consideration
 Flexibility
 Other factors we select partnership ownership

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1.3 Objective
The objective of the business plan is:-

 To produce financially (economically) viable hollow concrete block (HCB).

 To produce safe and durable HCB.

 Technically sound replicable HCB.

1.4 Mission
Production of good weather resistance, safe and durable Hollow concrete blocks by identifying qualified
ingredient of HCB construction materials.

1.5 Vision
Seeing the fulfillment of customer’s interest or maximize HCB users’ satisfaction for the future with
potentially balanced cost in the last we are expand and computable with the national and international
company and control the market by supply customer need.

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CHAPTER TWO
2. The product and service
Fast HCB production offers concrete blocks of new generation, which create 20cm, 15cm and 10cm
broad carrying wall, ceiling- and annular concrete blocks. After that, an isolating complex is sticker from
inside. The complex consists of expanded polystyrene with sticker plaster board. Windows are embedding
in this isolating complex; there is therefore no widow case, which could freeze. In the house, there is no
need to heat, when nobody is at home.

Our products we produce from the grade of HCB are:-

 Grade A
 Grade B
 Grade C
The first one by optimum utilization of skilled, mix proportion and others we produce the first
grade of HCB.

The following picture shows a basic production line of thin-wall vibro-pressed concrete blocks:

figur2.1-sample production of concrete blocks

I.Advantages and parameters of Hollow concrete blocks:

Advantages are as follows:

• low price – the cheaper walling material on market

• low weight

• low moisture absorption

• high consistence

• accurate dimensions

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• long persistence / life span

• fast and easy building-up

• climate changes resistant

• forced entry resistant

• sound insulation

A. Parameters:

The production Hollow Concrete  block contains cement,fine agregate,course aggregate and pumice
with ratio of 1:2:2:2 respactively. The basic model of Brothers HCB production measuring
20x20x40cm,15x20x40 and 10x20x40 (width x height x length).

B. Methods of walling and use:

Walling is set up on mortar – concrete blocks are laid bottom up. Corner block has a hole, which creates
armour concrete pillaret after filling with concrete. Thus the construction allows creation of pillars and
horizontal armatures too. Construction of a house is therefore more stable and qualitative.

Concrete blocks resist atmospheric exposures, that is why they are used also on fences, garages,
workshops, plants, fundaments, bottom wallings. Walling after that isn’t mostly plastered, nor from
outside, only coadjacent kerfs are modified. In addition there is also an advantage, that one can keep it
clean excellently, because it is enough to wash the wall from time to time from inside and outside with
power water.

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CHAPTER THREE
3. Operational plan
3.1 Manufacturing technique/ methodology
Planned mill of our company consists of hall, measuring 20x30m, 11m high, where all the concrete
preparation and whole production with stock room will be located. Second architectural object is a shelter
19x19m, 5m high, isolated from the first one by reinforced asphaltic surface, which will serve as
a manouvre place. Shelter will be used partially as a resereve gravel storage bin and partially as a stock
room for finished goods.

Preparation

•Set up equipment, tools and material

•Sieve the sand, as a first step with 1 cm² sand sieve in order to separate bigger rocks.

• As a second step sieve with smaller mesh sieve (such as 4, 5 mm²) in order to get fine sand. The
sand must be clean from dirt, garbage, and mud.

Mixing of concrete

Mixing of concrete is usually done by hand for small quantities or by machine for big quantities.

a. Hand mixing

Hand mixing is adopted where in smaller quantities of aggregates are involved or the involvement or
procuring of mixing machines is out of reach. Mixing shall always be done on a watertight platform in
order to avoid cement water seepage.

Procedure for proper hand mixing:

1. Spread the measured quantity of sand in a layer of about 10 cm on the mixing platform;

2. Place the cement on top of the sand and mix the two thoroughly together until they form an
even color;

3. Pile the mixture into a heap and make a hollow in the middle;

4. Pour in water slowly in small quantities and mix until a smooth paste is formed;

5. Check your mix: take a handful of the mix and form a small ball. If the ball in your hand does not
crack, and your hand is a little bit wet, the mix is ready to be molded.

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Flatten the dry mix with a trowel, if properly Add water only once a uniform gray color is mixed a
uniform gray color is visible. But this method is time consuming relative to machine mixing. Therefore in
our business we prefer the machine mixer in order to supply quickly for our customer.

b. Machine mixing

Machine mixing is required for large quantities of concrete work and for good workability for placing the
concrete in a short time and with no wastage. Concrete having coarse aggregates is mixed in concrete
mixers.

Procedure for machine mixing:

1. Measure the quantities of each ingredient;

2. First add the aggregates and some amount of water, then the cement, then the sand;

3. Mix and add more water until the right consistency is reached;

4. Empty the mixer completely when discharging each batch;

5. Clean the concrete mixer thoroughly on completion.

3.2 Mix ratios

Based on your customers’ needs and different qualities of your products, the mix ratio for your concrete
can be various. In general, the more cement you use in your mix the higher the quality you will achieve
(but also the more expensive your product will be for the costumer).

a) Concrete hollow blocks:

To make a high quality concrete hollow block, which can be used for walls of houses, your mix ratio
should be:

1 part good quality cement + 2 parts clean river sand + 2 parts course aggregate +2part pumice +
sufficient water (the sand are from Alaba)

Figure3.2-Measuring of mixtures

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Keep in mind that for building houses always best quality blocks are to be used as the safety of families
moving into the houses is at play. If you sell lower quality building blocks for building houses, risks are
very high that the newly built walls will collapse and bury the occupants of the house underneath. If you
sell these lower quality blocks without explaining the dangers and risks to your customers, you will be
responsible for their grieve as a consequence of a collapsed house.

3.3Moulding the concrete

The concrete after mixing must be placed in the defined position and compacted before the initial setting
of cement starts. Before the moulding of concrete starts, it must be ensured that the moulds are rigidly
braced, true to their position, oiled, cleaned and dried of any standing water. If concrete is moulded on the
ground (e.g. for concrete building blocks), the soil should be level (flat), clean and thoroughly damp, but
without any standing water when the concrete is moulded. A plastic canvas may be used to ensure that the
soil is clean. Work the concrete right into the corners and along the edges of the moulds with a spade or a
trowel.

a) Building Blocks

1. Fill the concrete mix into your measuring device (i.e. bucket with line for proper measurement);

2. Put the bottom part of the block mould into its proper position (underneath a roof structure – shadowy
place);

3. Oil the lower part of the block mould;

4. Pour the exact amount of measured concrete mix into the block mould (every time use the exact same
amount of concrete mix, so you will get the exact same blocks – same size, same strength, same quality);

5. Put the compressive device of your block mould on top of the lower part of the mould;

5. Press the compressive device straight down until its “feet” touch the floor on both sides;

6.Step with your own feet onto the “feet” of the block moulds’ compressive device, bend over the mould,
take the handles of the lower part of the block mould into your hands, and carefully lift the bottom part of
the mould slightly up;

7. carefully, set the bottom part of the mould back down onto the ground;

8. Take off the compressive device from the lower part of your mould, and set aside;

9. Carefully lift the lower part of the mould straight up, and place next to your ready moulded building
block;

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10. Leave your newly moulded building block, where it is for one day (do not move, but make sure it
does not come in touch with direct sunlight);

11. After this one day, your blocks can be piled up, and need to be cured for at least one week (proper
procedure see explained below)

12. Clean your mould from the remains of your previous block and dust;

13. Oil your mould;

14. Follow steps 2-14 for making your next block.

CHAPTER FOUR

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4. Market analysis and potentials

4.1. Market analysis
Cement concrete hollow blocks are modern construction materials and as such are used in all the
constructions viz. residential, commercial and industrial building constructions. Construction industry is a
growing a sector. The demand for this product is always high in Hawassa cities and other urban centers
due to construction of residential apartments, commercial buildings and industrial buildings.
Growing public awareness of the advantages of the product coupled with increase in the government and
financial institutions support for housing which is a basic human necessity would ensure a healthy growth
in the demand. In production of HCB market demand is largely depends or affected by the following:
 Quality of concrete
 Manufacturing process:
 Location, Land and Building:
 Machinery & equipment:
 Installed capacity of production

4.1.1. Factors influencing concrete quality

 Cement
The cement quality is a very import factor that influences the basic requirement of the concrete. Cement
must be fresh and free from any lumps. The grading of the cement is important, too. A high grade
cement, e.g. Grade 53 is gaining more rapid strength than a Grade 33 cement. However, after 90 days,
both types of cement will have approx. gained the same final strength. In Aceh Padang Cement is the
best quality cement available and should be used in particular for concrete building blocks.

 Water – Cement ratio

The ratio of minimum quantity of water to the weight of cement, required to obtain the desired
consistency and workability of concrete mix is called: water cement ratio. Concrete strength decreases
with the increases in water cement ratio. This is because the added water once evaporated leaves behind
very very small voids. The more voids there are in a concrete, the weaker it becomes.

 Raw materials
The sand and aggregate must be free of leaves, grass and other foreign matters. Sand should be fairly
coarse with particle sizes ranging from fine dust up to about 5mm. Clean aggregate with sizes of 26,5
mm, 19 mm, 13,2 mm or 9,2 mm can be used for concrete. Aggregate size of 26.5 mm can be used for
thick sections such as foundations, deep suspended slabs and industrial floors thicker than 120 mm. 19
mm aggregates can be used for floors, paths and driveways. Aggregates 13.2 mm or 9.5 mm can be used

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for thin concrete sections such as thin suspended slabs, precast items with sections’ thickness ranging
from 40 mm to 50 mm.

 Fineness of fine aggregate

Concrete strength decreases with increases in fineness of fine aggregate. This is because the fines
require a lot of cement for a total coverage, resulting into a leaner overall mix.

4.1.2. Manufacturing process:

Based on your customers’ needs and different qualities of your products, the mix ratio for our concrete
can be various. In general, the more cement we use in our mix the higher the quality we will achieve (but
also the more expensive our product will be for the costumer).

Generally most of the time the ratio of cement, sand, course aggregate, pumice in the raw material mix
determines the properties of hollow concrete blocks. A ratio of 1:2:2:2 (cement: sand: course aggregate,
pumice) confers higher strength.

Procedure for machine mixing:

1. Measure the quantities of each ingredient;
2. First add the aggregates and some amount of water, then the cement, then the sand;
3. Mix and add more water until the right consistency is reached; Empty the mixes
4. Completely when discharging each batch; clean the concrete mixer thoroughly on completion.

4.1.3. Location, Land and Building:

The unit is proposed to be located at Tabor sub cities land available and is leased by the promoter for
establishing the unit. Building required for establishing the unit has to be constructed .

4.1.4. Machinery& equipment:

Details are shown in the annexure. The plant and machinery proposed to be installed in the unit are
Indigenous.

4.1.5. Installed capacity of production

The unit is proposed to be operated in 300 days per annum ( 26 days in a month of single shift operation
of 8 hours duration in a day). As per the capacity of machinery to be installed and by considering
production wastage the monthly production is worked out in the following table. It is proposed to utilize
70% of the installed capacity in the first year of operation and 75%, 80%, 85%, 90% in the consecutive
years of operation.

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4.2. Scope and Market Potential:

Hollow block industry is one of the fastest growing segments of Industry in Hawassa. The growth of the
tile industry has shown steep fluctuations. The increase in number of households and over the country
created a great demand for hollow concrete block.

Hollow concrete blocks are substitutes for conventional bricks and stones in building construction. They
are lighter than bricks, easier to place and also confer economies in foundation cost and consumption of
cement. In comparison to conventional bricks, they offer the advantages of uniform quality, faster speed
of construction, lower labor involvement and longer durability. In view of these advantages, hollow
concrete blocks are being increasingly used in construction activities. Due to day to day development of
our countries, the government and privet owners construct a low cost building (condominium) house.
Since the needs of the market increases through day to day. Therefore we are inciting for the production
of hallow concrete block for satisfying the needs of the customer specially in Hawassa city and some
urban areas like yirgalem, wendogenet, shashemene, dilla town.
In case we tries to supply the product in efficient and more quality and feeling the gap between the market
and customer.

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CHAPTER FIVE:
5. Business strategy and implementation
Our strategy are use the stationary mixer and a machine of HCB production and produce the most popular
quality of blocks by:
 Planning
 Organizing
 Managing and
 Controlling: the production of hallow concrete block and guiding the flow of works in order to
competent with other company production and suppliers and the last targets of the company is
controlling of the market.
5.1. Organization structures
In order to increase our business efficiencies and have a good management strategy we must category our
business in to different departments those structures are as follows:-
 Department of management advisor board
 Department of control quality
 Department of material suppliers
 Accountant
 Mentor and key advisors
 Insurance agent
 Department of financial and others in order to facilitate our production
The founders of this company production are by the contribution, interesting and intelligence initiation of
six people.
5.2 Production capacity
The plant and machinery proposed in the project has a production capacity of 800 No’s per day of
cement concrete hollow blocks of size 100X200X400 mm. within 26 working day per month the amount
of hallow concrete block is 20800 no. At 75% utilization of the capacity, productions of 187200No’s per
year of blocks have been taken into consideration.
Cement concrete hollow blocks are usually of the following three dimensions: 100X200X400 mm,
150X200X400 mm and 200X200X400 mm. Although hollow blocks of all the three sizes could be made
using the same machinery and equipment proposed in the project, for computation purpose only one size
viz 100X200X400 mm is considered in the sales turnover.

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Hollow blocks of other sizes could also be made depending on the customer needs and requirement. With
the given set of machinery and equipment used in making the hollow blocks, solid blocks could also be
made with the help of additional mold sets only.

5.3. Utility for the product

Electrical Power requirement: 25 KWH power for industrial purpose is required.
Water: water used in making concrete should be free from acids, alkalis, oil, dissolved carbon dioxide
and decayed vegetable matter. Generally, water suitable for human consumption is considered adequate
for concrete mixing.

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CHAPTER SIX
6. Financial plan
6.1. Capital cost
A. LAND & BUILDING (per month)
Rate per unit(birr)
Sl Description Quantity Units Amount (birr)

1 Land 600 Sq. meters 8000

TOTAL 8000
Table6.1- land &building
B. MACHINERY & EQUIPMENT
Quantit Rate per Amount
Sl Description Units
y unit (birr) (birr)

1 Hydraulically operated concrete block making machine 1 No. 25000 25000

2 Concrete mixer: 10/7 cft hydraulic hopper and road wheels 1 No. 80000 80000
3 Shade(cover) plastic cover 400 No. 50 20000
4 used for truss and other 15000
5 Electrical and EB charges for 25 HP power connection 25000
Total 165000

6 Erection and commissioning charges @ 10% 16500

7 Ram and mold for hollow blocks 3 Sets 150 450

8 Wooden palettes 2000 No. 20 40000
TOTAL 221950
Table6.2- Machinery & equipment
A. SALARY & WAGES (PER MONTH)
Amount(birr)
Sl Description No. Salary (birr)

1 Skilled or semi-skilled workers 2 3000 6000

2 Unskilled workers 8 1500 12000
4 Manager/Supervisor 1 4000 4000
Total 22000
Table6.3- Salary & wages (per month)

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A. RAW MATERIALS

Rate per unit(birr) Amount(birr)

Sl Description Quantity Units

1 Cement 25 quintal 250 6250

2 Sand or crushed stone sand 100 M3 300 30000
3 Pumice 100 M3 60 6000
4 Course aggregate(01) 100 M3 530 53000
TOTAL 95250
Table 6.4-Raw materials
A. UTILITIES (PER MONTH)
Rate per unit (birr) Amount(birr)
Sl Description Quantity Units

1 Power 1500 kWh 5 7500

2 Water 5 m3/day 20 100
TOTAL 7600
Table6.5- Utilities (per month)
A. MISCELLANEOUS EXPENSES (PER MONTH)
1 Repairs and maintenance 5000
TOTAL 5000

6.2. Profits of the company

B. SALES TURNOVER (PER YEAR)
Quantity(birr) Rate
Sl Product item Value(birr)
/year (birr)
1 Cement concrete hollow blocks of size150x200x400mm 156000 7 1092000
2 100X200X400 mm 156000 6 936000
3 200X200X400mm, 156000 8 1248000
 Total 3276000
Table 6.6- Sales turnover (per year)

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75000
3276000 3276000 3276000 3276000 3276000

0 1 2 3 4 5

34600 34600 34600 34600 34600

325200 Figure 6.1-cash flow diagram

Calculation of rate of return: Ret of return

(i) Let assume i=12% and N =5 year
I= -325200-34600(p/A,I,n)+3276000(P/A)+75000
But the value of i=12% and N=5 year
p/A=3.6048 P/F=0.5674
By interpolation we get
i= 35%
(1) PROFIT RATIO ON SALES 35%

Net Profit per Year 3276000birr

Profit Ratio on Sales X 100 X 100X35%
Sales Turnover per Year = 3276000birr
(2) RATE OF RETURN 35.0%
Net Profit per Year=3276000
Rate of Return X 100 X 100x 35%
Total Capital Investment =325200 birr

BREAK EVEN ANALYSIS

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1) FIXED COST PER YEAR =34600 birr

2) BREAK EVEN POINT (B.E.P.) =54.70%

CHAPTER SEVEN
7. Conclusion
 Fast production of HCB Company is to produce economically viable hollow concrete block, to
produce safe and durable HCB and produce technically sound replicable HCB for builder .This
hollow concrete block Construction Company will be the first choose by the builders or
constructor because this HCB is reduce mortar consumption, light weight and greater speed of
work compared to brick masonry.
 Fast production of HCB also consider with the quality in case of good weather resistance, safe
and durable Hollow concrete blocks by identifying qualified ingredient of HCB construction
materials. Since many builders in this country are yet to become familiar with the use of concrete
blocks, guidance in the form of a code of practice will help them to appreciate the essential
constructional details and adopt hollow concrete block masonry in a larger scale wherever it is
economical.

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Appendices
1The different advertising material in our business
 Fliers
 Radio
 Attach on billboard
 Prepare ceremony
 Niche
2 Detailed list of equipment and material we purchase
 Stationary mixer
 Mould
 Machine produce HCB
 Wood palette
 EGA sheet
 Truss wood

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 Hand Shovel
 Trowel
 Cement
 Aggregate
 pumice

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