This document provides production capacity, machinery requirements, and financial analysis for 3 product lines (skived & burnished, components, and cut length tubes) of a manufacturing company from FY20 to FY23. Key details include: - Total planned production capacity in FY23 is 19,000 MT with the largest from cut length tubes at 8,300 MT. - Common resources include lathes, welding robots, overhead cranes, and testing equipment. There are also 5 white collar and 11 blue collar employees. - Financial analysis shows actual sales and production volumes in FY23 were lower than planned, resulting in a net loss. Production volume variances contributed positively to the variance in raw material

1. Team TITANS

2. Masterminds, IIM Ahmedabad
Skived and
Burnished
Machines Required:
Skiving and roller
burnishing
machines(No:4):Sierra(2),T
MT(1),M2(1)
CAPACITY: 10000
MT/YR
AREA:
Cut Length
Tubes
Machines required:
Tube Cutting
machines(7):Behringer
Capacity:4500 MT/YR
Area required:
Components
Machines required:
Components skiving
machines(2).
3d Testing facilities.
Capacity:
4500MT/YR
Area Required:
COMMON RESOURCES:
• Lathes – CNC – 7 Nos. (Doosan, Voest Alpine, Mazak, Puma, Storebro, Heyligenstaedt).
• Welding Robot – 3 Nos. (ABB, Cloos, Keempi).
• Overhead Cranes – 8 Nos.
• Mechanical testing equipment for tensile and Impact testing.
• 5 white collars and 11 blue collar employees.
PRODUCT PORTFOLIO ANALYSIS

3. PRODUCT PORTFOLIO ANALYSIS

4. Product capacity FY20 FY21 FY22 FY23 plan FY23 Act
skived & burnished 10000 1993 4163 3325 3491 5291
components 4500 2462 3511 1174 1232 4023
cut length tubes 4500 3558 6163 4956 5197 8300
Total 19000 8013 13837 9455 9920 17614
Year (Rs. In Mn) FY20 FY21 FY22 FY23 plan FY23 Act
sales 385.8 227.8 353.9 400.3 322.5
RM cost 255.48 145.59 237.57 259.79 119.9802
CM 96.87 53.49 111.09 114.49 226.96
employee cost 99.92 88.16 182.97 134.50 70.66
FC 200.8 160 163.4 168.8 168.8
EBIDTA -71.37 -99.59 -34.97 -39.27 -68.64
COGS 457.17 327.39 388.87 439.57 391.14
VC 288.93 174.31 242.81 285.81 -73.26
OH cost 101.77 112.31 0.00 45.27 71.36
17614
BEP unit
COGS avg
skived & burnished 113.7084474 115.13332 136.751 121.8641
components 140.4667323 40.651586 48.2843 76.46753
cut length tubes 202.9978203 171.60925 203.83 192.8125
391.1442
DM avg
skived & burnished 63.54239145 43.801301 83.5463 63.63
components 78.49541784 36.941236 29.4988 48.31181
cut length tubes 113.4389507 64.844443 124.528 100.9371
212.8789
DM variance
flexible DM unit dm pu total
3491 0.0120251 41.9796
1232 0.0120097 14.796
5197 0.0121618 63.2046
119.98
budgeted 259.79
production volume variance 139.81 (FAIR)
actual labour - budgeted labour
63.84
unit proportion
2020 2021 2022 avg
24.87% 30.09% 35.17% 30.04%
30.73% 25.37% 12.42% 22.84%
44.40% 44.54% 52.42% 47.12%
RECOMMENDED FINANCIAL ANALYSIS

5. DL variance
flexible DL unit dl pu total
3491 0.00729 25.4484
1232 0.00628 7.73704
5197 0.007211 37.4745
70.6599
Budgeted 134.501
production volume variance 63.8409 (FAIR)
SALES-COGS=EBIDTA
EBIDTA-OTHER EXPENSE=CM
FY21
DM DL OH COGS
43.8013 26.5234 44.8086 115.133
36.9412 22.36936 0 40.6516
64.8444 39.26584 67.499 171.609
112.308
FY20
DM DL OH COGS
63.5424 24.85273 25.3133 113.708
78.4954 30.70117 31.2701 140.467
113.439 44.3683 45.1906 202.998
101.774
FY22
DM DL OH COGS
83.5463 64.34299 0 136.751
29.4988 22.7184 0 48.2843
124.528 95.90492 0 203.83