Project report for Piston Ring Manufacturing

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Introduction

The piston ring is one of the most important parts of the Deisel/Petrol engines. It is an open-ended ring that fits into a groove on the outer diameter of a piston in a reciprocating engine such as an internal combustion engine or steam engine. The principal function of the piston rings is to form a seal between the combustion chamber and the crankcase of the engine.  The goal is to prevent combustion gases from passing into the crankcase and oil from passing into the combustion chamber
The three main functions of piston rings in reciprocating engines are:
1.    Sealing the combustion/expansion chamber.
2.    Supporting heat transfer from the piston to the cylinder wall.
3.    Regulating engine oil consumption.
During the compression and power strokes, the compression ring seals the combustion gases and prevents blow-by. Although blow-by is not completely eliminated it is kept to an acceptable limit.  During the compression and exhaust strokes, the cylinder walls are lubricated with oil by a throw off from the connecting rod bearings.  Excess oil is wiped off by the piston rings.  Not only does the oil ring have the responsibility of wiping the excess oil off the cylinder walls, but the job is also shared by all of the rings, leaving a fine layer of oil on the wall to provide lubrication for the following ring.  As rings wear, the ability to perform these functions is decreased resulting in oil consumption and blow-by.  When this happens it is time for a new set of rings.

 

 

Product / Services & process

Piston rings are generally made up of cast iron. The blanks of cast rings of required size and desired properties are procured from the local foundries. After that blanks are cleaned and get ground. Then the blanks are undergone through various processes like facing, rough diameter, rough bore, finish diameter & finish bore. The rings are generally machined to the required shape by means of  turning, a process in which the ring blank, already axially ground, is copy turned on the inside and outside diameters. After a segment equivalent to the free gap is cut from the ring it assumes the free shape that will give it the required radial pressure distribution when fitted into the cylinder..

 

Raw materials / Consumables

The materials used to make Piston Rings are one of the most critical factors in its performance.

Listed below are some of today's common material used in manufacturing of piston rings and metallic seals:

    Cast iron
    Cast iron alloyed for piston rings
    Nodular cast iron alloyed for piston rings
    Bronze
    Aluminum Bronze
    Phosphor Bronze
    Steel
    Stainless Steels for use in high temperature

 

Quality & Pollution Control

QUALITY CONTROL
The procured blanks castings should be checked very carefully as per given requirement (size,grade etc). This is the very first step in quality control.The product should be monitored after completion of each stage so that chance of rejection at the end is eleminated. Piston rings should be manufactured as per IS : 5791-1971 & IS: 8422 for IC engines.The entire operation of surface treatment/ coating should be closely controlled. For the inspection process proper callibarated gauges should be used.

POLLUTION CONTROL
As this unit doesnot comes under heavy polluted industry, although No Objection Certificate from pollution control board should be taken.

 

 

Plant & Machinery / Equipments

 

Sl no Machinename Qty
1 Lathe machine,1800 mm bed with 3 H.P motor    2
2 Lathe machine,900 mm bed with 2 H.P motor 1
3 Face grinder with special attachment, 4 H.P motor 1
4 Bench drill machine.12mm capacity 1
5 Bench grinder,250mm wheel dia,1H.P motor 1
6 Gauges,tools & other equipments LS

 

 

Market potential & Strategy

Piston ring is the one of the most replaceble part of the diesel/petrol engines.It has great demand in the replaceble market as well as in new engines market.For the last few years there is noticeble increase in the automobile industry, which is the vast market for it. Piston rings are not only used in the automobile industry but also used in :
•    Railway Engines
•    Compressors
•    Steam Hammers
•    Cars
•    Retaining Rings
•    Pumps
•    Industrial Applications
•    Cranes
•    Gearboxes
So, by maintaining quality  and using proper marketting techniques there is alwayes a great market of  this product.

 

 

PROJECT REPORT

Piston Ring Manufacturing

Address

Introduction

The piston ring is one of the most important parts of the Deisel/Petrol engines. It is an open-ended ring that fits into a groove on the outer diameter of a piston in a reciprocating engine such as an internal combustion engine or steam engine. The principal function of the piston rings is to form a seal between the combustion chamber and the crankcase of the engine.  The goal is to prevent combustion gases from passing into the crankcase and oil from passing into the combustion chamber
The three main functions of piston rings in reciprocating engines are:
1.    Sealing the combustion/expansion chamber.
2.    Supporting heat transfer from the piston to the cylinder wall.
3.    Regulating engine oil consumption.
During the compression and power strokes, the compression ring seals the combustion gases and prevents blow-by. Although blow-by is not completely eliminated it is kept to an acceptable limit.  During the compression and exhaust strokes, the cylinder walls are lubricated with oil by a throw off from the connecting rod bearings.  Excess oil is wiped off by the piston rings.  Not only does the oil ring have the responsibility of wiping the excess oil off the cylinder walls, but the job is also shared by all of the rings, leaving a fine layer of oil on the wall to provide lubrication for the following ring.  As rings wear, the ability to perform these functions is decreased resulting in oil consumption and blow-by.  When this happens it is time for a new set of rings.

 

Product / Services & process

Piston rings are generally made up of cast iron. The blanks of cast rings of required size and desired properties are procured from the local foundries. After that blanks are cleaned and get ground. Then the blanks are undergone through various processes like facing, rough diameter, rough bore, finish diameter & finish bore. The rings are generally machined to the required shape by means of  turning, a process in which the ring blank, already axially ground, is copy turned on the inside and outside diameters. After a segment equivalent to the free gap is cut from the ring it assumes the free shape that will give it the required radial pressure distribution when fitted into the cylinder..

Raw materials / Consumables

The materials used to make Piston Rings are one of the most critical factors in its performance.

Listed below are some of today's common material used in manufacturing of piston rings and metallic seals:

    Cast iron
    Cast iron alloyed for piston rings
    Nodular cast iron alloyed for piston rings
    Bronze
    Aluminum Bronze
    Phosphor Bronze
    Steel
    Stainless Steels for use in high temperature

Quality & Pollution Control

QUALITY CONTROL
The procured blanks castings should be checked very carefully as per given requirement (size,grade etc). This is the very first step in quality control.The product should be monitored after completion of each stage so that chance of rejection at the end is eleminated. Piston rings should be manufactured as per IS : 5791-1971 & IS: 8422 for IC engines.The entire operation of surface treatment/ coating should be closely controlled. For the inspection process proper callibarated gauges should be used.

POLLUTION CONTROL
As this unit doesnot comes under heavy polluted industry, although No Objection Certificate from pollution control board should be taken.

 

Plant & Machinery / Equipments

 

Sl no Machinename Qty
1 Lathe machine,1800 mm bed with 3 H.P motor    2
2 Lathe machine,900 mm bed with 2 H.P motor 1
3 Face grinder with special attachment, 4 H.P motor 1
4 Bench drill machine.12mm capacity 1
5 Bench grinder,250mm wheel dia,1H.P motor 1
6 Gauges,tools & other equipments LS

 

Market potential & Strategy

Piston ring is the one of the most replaceble part of the diesel/petrol engines.It has great demand in the replaceble market as well as in new engines market.For the last few years there is noticeble increase in the automobile industry, which is the vast market for it. Piston rings are not only used in the automobile industry but also used in :
•    Railway Engines
•    Compressors
•    Steam Hammers
•    Cars
•    Retaining Rings
•    Pumps
•    Industrial Applications
•    Cranes
•    Gearboxes
So, by maintaining quality  and using proper marketting techniques there is alwayes a great market of  this product.

 

Project at a glance

Name & Address of Unit

Piston Ring Manufacturing

Address

Details of unit
Email : youremail@gmail.com
Phone : 00000000
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Working capital loan : *******
Name & address of promoter(s)
Name : Your name
Address : Address
Phone : 0000
Designation : Proprietor
E-mail : youremail@gmail.com

Project Feasibility Ratio

Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33

Project Feasibility graph

Revenue v/s Expense Expense Splitup
 
Revenue
 
Expense
Net profit Sales % Quick ratio

Project Cost

Sl. no Item Amount Rs
1 Lathe machine,1800 mm bed with 3 H.P motor *******
2 Lathe machine,900 mm bed with 2 H.P motor *******
3 Face grinder with special attachment, 4 H.P motor *******
4 Bench drill machine.12mm capacity *******
5 Bench grinder,250mm wheel dia,1H.P motor *******
6 Gauges,tools & other equipments *******
7 Furniture *******
8 Electrification *******
9 Preliminary expenses *******
10 Working Capital *******
Total *******

 

Working Capital Computation

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******
9 Working capital loan *******

Annual Sales / Revenue

Sl. no Item Rate Quantity Unit Total Rs
1 Piston ring ******* X 90000 Number *******
Total *******

Total Yearly Expense

Sl. no Item Amount Rs
1 Rent *******
2 Salary (Skilled and unskilled) *******
3 Admin *******
4 Manager *******
5 Repairs & Maintanance *******
6 Electricity *******
7 Office expense & utilities *******
8 Purchase of cast iron *******
9 Marketing/Advertisement *******
Total *******

Application of Fund

Sl. no Item Subsidy % No. Rate Amount Rs
1 Lathe machine,1800 mm bed with 3 H.P motor ******* 2 ******* *******
2 Lathe machine,900 mm bed with 2 H.P motor ******* 2 ******* *******
3 Face grinder with special attachment, 4 H.P motor ******* 1 ******* *******
4 Bench drill machine.12mm capacity ******* 1 ******* *******
5 Bench grinder,250mm wheel dia,1H.P motor ******* 1 ******* *******
6 Gauges,tools & other equipments ******* 1 ******* *******
7 Furniture ******* 1 ******* *******
8 Electrification ******* 1 ******* *******
9 Preliminary expenses ******* 1 ******* *******
Total Investment *******
Total Subsidy *******
Net Investment *******

Means of Finance

Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Profitability Statement

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock 0.00 0.00 0.00 0.00 0.00
Total ***** ***** ***** ***** *****
Less :
Opening stock 0.00 0.00 0.00 0.00 0.00
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****

Cash flow statement

Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 0.00 0.00 0.00 0.00 0.00
Subsidy 0.00 0.00 0.00 0.00 0.00 0.00
Termloan ***** 0.00 0.00 0.00 0.00 0.00
Profit before tax with interest 0.00 ***** ***** ***** ***** *****
Increase in WC loan 0.00 0.00 0.00 0.00 0.00 0.00
Depreciation 0.00 ***** ***** ***** ***** *****
Increase in Current liability 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset 0.00 0.00 0.00 0.00 0.00
Interest on TL 0.00 ***** ***** ***** ***** *****
Interest on WC 0.00 0.00 0.00 0.00 0.00 0.00
Income Tax 0.00 ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing 0.00 0.00 0.00 0.00 0.00 0.00
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow 0.00 ***** ***** ***** ***** *****
Closing balance 0.00 ***** ***** ***** ***** *****

Balance sheet

Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus 0.00 ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan 0.00 0.00 0.00 0.00 0.00 0.00
Account payable 0.00 0.00 0.00 0.00 0.00
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory 0.00 0.00 0.00 0.00 0.00 0.00
Trade receivables 0.00 0.00 0.00 0.00 0.00 0.00
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****

Repayment of Term loan

Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****

Debt Service Coverage Ratio

Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit 0.00 0.00 0.00 0.00 0.00
b).Depreciation 0.00 0.00 0.00 0.00 0.30
c).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
Repayments
a).Loan Principal 0.00 0.00 0.00 0.00 0.00
b).Interest on termloan 0.00 0.00 0.00 0.00 0.00
Total 0.00 0.00 0.00 0.00 0.00
DSCR 0.00 0.00 0.00 0.00 0.00

Depreciation

Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building 0.00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Computers/ Printers /Photocopier/Electronic gadget 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Furniture & fixtures 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Racks & storage/Interior works 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new item 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
new 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Air-conditioning 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Other investments 00 0.00 0.00 0.00 0.00 0.00
Less Depreciation 0.00 0.00 0.00 0.00 0.00
Written down value 0.00 0.00 0.00 0.00 0.00
Total less depreciation 0.00 0.00 0.00 0.00 0.00
Total written down value 0.00 0.00 0.00 0.00 0.00

Conclusion

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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