This document proposes several capital projects for an apparel store including: 1) Separating the quality department from the store area to improve security and space utilization. 2) Installing a fabric inspection machine to improve quality, reduce labor costs, and recover costs within 6 months. 3) Implementing a conveyor system to automate the fabric loading process, reduce risks, and recover costs within 6 months. 4) Acquiring hand pallet trucks to move materials faster and more efficiently. The total proposed budget for these enhancements is 22,00,000 Rs.

1. CAPITALIZATION WORK
Enhancement of Store Functions,
Expenditures & its Recovery Plan

2. Project Work
1) Separation of Quality Dept. and Store
2) Fabric Inspection Machine
3) Conveyor System
4) Hand Pallet Truck

3. CURRENT STORE LAYOUTQualityTables
FreeSpace
Fabric Checking mc 1 Fabric Checking mc 2
Fabric Loader /Slider
Fabric Loader /Slider
Fabric Store Area

4. PROPOSED STORE LAYOUTPassage
Quality deptt. & New Fabric Checking m/c
Conveyor for material
Loading
Fabric Loader /SliderFabric Store Area

5. Project – Separation Work of Quality Department
Partition Work to be done - Expenditure Rs. 1.50 Lacs.
Merits - 1. Store security will be improved
2. Better space utilization
3. More clarity of usage of
manpower & area

6. Proposal For Fabric Inspection
Machine

7. Costing of Inspection by M/C
Costing Sheet for Fabric M/c
Fabric Checked per hour 15m/min 900/hr
Total In 8 Hrs 7200
Total in a Month (A) 7200x26 187200
Labour Cost (B) 1 Fabric Checker +1 Helper = 8000+6620 14670
Electricity Cost/Month(C) 2units/hr x 8hr x 9/unit x 26 days 3744
Total Cost D=(B+C) 18414
Cost /mtr (D/A) 0.09/Mtr

8. Costing of Manual Inspection/Checking
Type of Fabric Manual Fabric Checked in mtr
Dec-14 Jan-15
Grey (A) 5,27,625 348,691
Dyed (B) 7,05,833 946,093
Total C =(A+B) 12,33,458 12,94,781
Labour Cost (D) 2,34,048 3,53,474
Cost/Mtr E = (D/C) 0.19/m 0.27/m
Average Cost 0.23/m

9. Recovery Period of Fabric Inspection
Machine
In Mtr
• Total Fabric Checked in a year 12,50,000 x12 15000000
• Total Cost saving in a year 1,50,00,000x0.10 1500000
• Machine Cost 750000
• Therefore we recover the cost in 6 months

10. Benefits Of Fabric Inspection machine
• Improvement in Fabric Quality & Handling
• Helps in Traceability
• Space Utilisation
• Reduce Labour Cost
• Time Saving

11. Project – Conveyor System For Fabric
Loading Process

12. Conveyor System For Fabric
Loading Process
•

13. Recovery Period for Conveyor System
In Mtr
• Total Fabric Checked in a year 9,25,000 x12 1,11,00,000
• Total Cost saving in a yea 1,11,00,000x0.10 11,10,000
• Conveyor Cost 5,00,000
• Therefore We recover the cost in less than 6 months

14. BENEFITS OF CONVEYOR SYSTEM
• REMOVE RISK AND CHANCES OF ACCIDENT
• HELPS IN STANDARDISATION OF THE PROCESS
• MAKE THE PROCESS FAST & RELIABLE
• IMPROVE EFFICIENCY OF THE LABOUR

15. Hand Pallet
MERITS:-
1) It will help to move the material fast
2) It will increase the efficiency of Labour
3) It will save time

16. CONCLUSION
• This project will reduce the manpower cost as
well as loading process time. The entire
project will convert from manual process to
automation.

17. Total Budget for this Project
• Separation work of Store & Quality Dept. = Rs 1,50,000
• Fabric Inspection Machine = Rs 15,00,000
• Conveyor System = Rs 5,00,000
• Hand Pallet = Rs 50,000
Total = Rs 22,00,000