Ready Mix Concret Fesiblity study PDF

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0|Page Collaborative Gradate Program between Gambella University (GmU) and Green Research and Development Institute (GRDI) Program: Masters of Art in Project Planning and Management Course: DEVELOPMMENT PLAN AND MANAGEMENT Topic of Term Paper: READY MIX CONCRET Name: Robel Nigatu 22 December, 2019 G...

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Collaborative Gradate Program between Gambella University (GmU) and Green Research and Development Institute (GRDI)

Program: Masters of Art in Project Planning and Management Course: DEVELOPMMENT PLAN AND MANAGEMENT Topic of Term Paper: READY MIX CONCRET Name: Robel Nigatu

22 December, 2019 Gambella, Ethiopia

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TABLE OF CONTENT

Page Number

1. BACKGROUND OF THE PROJECT ………………. 04 2. TECHINICHAL STUDY

………………… …. 05

………………………………….... 06

2.1 History

2.1 Equipment in Ready Mix Concrete (RMC) ……... 07 2.2 Batching plant capacity …………………………... 09 2.3 Investment cost

…………………………………. 10

2.4 work schedule

………………………………….. 11

2.5 Application of Ready Mix Concrete (RMC) ……... 12 3. MARKET STUDY …………………………………….. 13 4. ORGANIZATION AND MANGEMENT ………….. 14 5. FINANCIAL STUDY ………………………………….. 15

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6. CONCLUSION

…………………………………….. 18

7. REFERNCESS

……………………………………... 18

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Acknowledgment I acknowledge Dr. Nigussie Semie, for giving the motivation and lecture us project management and planning; I would like to admire and thank collaborative program by Gambella University and Green research and development institute.

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Project Background Project Title: Addis Ready mix concert suppler Location : Addis Ababa, Ethiopia Project Time Duration : 5 Years (From 2020-2025) Total Budget Requested : 359,351,979.44 BRR Interest rate : 10% Assumption ( 90% Bank and 10% Own) Construction activities in Addis Ababa, Ethiopia is increasing in current years, and demand for ready mix concert have increased from years to yeas. Since providing ready concert mix have advantages in the construction projects such as in roads and buildings in the city by achieving the specified quality and time schedule for completing the concrete works in projects. Furthermore, using ready mix concrete have a significant effect in reducing the labor cost needed to produce concrete mix in the site and also order the desirable and preferred concrete mix quality with fair price. This investments have a high demand in Addis Ababa, since the city construction industry is flourishing in tremendous amount. Banks and other financial sectors are building high rise buildings and road constructions in the city and in country is increasing. This resulted in the demand of fast and quality concert mix .this project objective is to satisfy the gap in concert demand and quality assurance in concert work. As an effort to overcome this the idea is to build a batching plant in Bole Abrarbsa in 3000m2 area. The investment generally known in two forms: first, real investment generally involve in tangible assets such as land, machinery, or factors. Second, financial investment involve written contracts, such as common stocks and borrowed money.

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Technical Study

Concrete mixed in a stationary mixer in a central batching and mixing plant or in a truck-mixer and supplied in fresh condition to the purchaser either at the site or into the purchaser’s vehicles.” Ready-mix concrete (RMC) is a ready-to-use material, with a predetermined mixture of cement, sand, aggregates and water. RMC is a type of concrete manufactured in a factory according to a set recipe or as per specifications of the customer, at a centrally located batching plant. Most of ready mixed concrete is currently manufactured under computer controlled operations and transported and placed at project sites using sophisticated equipment and methods. It is delivered to a worksite, often in truck mixers capable of mixing the ingredients of the concrete on route or just before delivery of the batch. The use of the RMC is facilitated through a truck-mounted boom placer that can pump the product for ready use at multistoried construction sites. A boom placer can pump the concrete up 80 meters. Ready mix concrete is usually ordered in units of cubic yards or meters. It must remain in motion until it is ready to be poured, or the cement may begin to solidify Where as in developed countries, nearly 70 per cent of cement consumption is in the form of ready mix concrete and 25 per cent in the form of recast, in Ethiopia, ready mix concrete accounts for less than 5 percent and as much as 82 per cent of cement consumption is in the form of site-mixed concrete. While 70%of cement produced in a developed country like Japan is used by Ready Mix concrete business there, here in Ethiopia, Ready Mix concrete business uses around 2% of total cement production. The share of RMC is expected to go up from present levels of around 5 per cent of the total cement production to the global average of 70 per cent, according to industry players.

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HISTORY

: In 1903 In 1913

RMC was First patented in Germany

In USA by 1990 Around 72% (more than 2/3rd) of cement produced was being used by various RMC plants.

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In 1926

The first delivery of RMC was made in BALTIMORE

The First Transit Mixer was produced for delivering the concrete

In Europe in 1997

In 1993

There were 5850 companies producing a total of 305 million cusecs of RMC. In Europe in 1997 There were 5850 companies producing a total of 305 million cusecs of RMC.

The first RMC Plant was setup in Pune. In 1993 The first RMC Plant was setup in Pune.

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Location & site selection is planned in Bole Arabesa 3000m2 (3hectar) area, where there is a place for raw materials such as stone and mountain areas to be demolition step by step for aggregate production.

EQUIPMENTS REQUIRED IN RMC: Inline Bins

Intert raw materials like fine & coarse aggregates are stored in bins called as INLINE BINS where the trucks carrying fine and crouse aggregate can dump the material easily.

Silo

Cement & Fly ash are stored in an airtight container called as “silos”. The required quantity of cement & fly ash is extracted by the soilos.

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Screw Conveyer belt

Cement and Fly ash are fed to holding hopper with the help of a screw conveyer. A heavy duty cement screw conveyor is fixed in an inclined position to convey the cement from Manual Feeding Hopper to Cement Hopper.

Transit Mixers Transit mixers are made to transport and mix concrete up to the construction site. The discharge of concrete is done from front or rear side of the Transit mixer

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Concrete Pumps A concrete pump is a machine used for transferring liquid concrete by pumping. There are two types of concrete pumps.

Vibrator A vibrator is a mechanical device to generate vibrations to remove the air voids in concrete and for proper compaction of concrete.

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Type

5 6 7

Theoretical Productivity Main tower structure Discharge height Total power Total weight Floor space

8

Mixing system

9

Aggregate weighing system

2 3 4

10 11

12

13

14 15

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Hosting system Cement weighing system Water weighing system Liquid admixtures weighing system Gas path system Screw conveyor

Concrete mixing plant HZS25 25m3/h Section steel, outer package (optional) 3.8m About 37kw （not include screw conveyor） About 14t（not include cement silo and screw conveyor） 17m×9m Dischargi Main Charging Power ng machine capacity capacity JS500 18.5kw 800L 500L Weighing Electric Measurin Bin capacity hopper power of g capacity Drum accuracy 5m3×3 1500L 4kw ±2％ Type Bucket volume Power of winch Bucket elevator 1200 L 5.5 kw Weighing hopper Measuring Weighing range volume accuracy 250L 0-250 kg ≤±1％ Water weighing Power of water Measuring scale volume pump motor accuracy 200L 2.2 kw ≤±1％ Admixture Power of Measurin Admixture weighing water pump g box volume scale volume motor accuracy 10L 1m3 0.37kw ≤±1％ Air compressor power：4kw Type Conveyor capacity Power

Ф219 45t/h 7.5 kw

Ф168 25t/h 7.5 kw

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16 17

Cement silo Control system

50t,80t,100t,150t,200t (optional) 6m2 Control room

B ACHING PLANT CAPACITY AND SPEIFICATION

INVESTMENT COST

PRODUCT MIX IN RMC RMC MATERIALSS

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AGGREGATE

COURSE AGGREGATE

CEMENT

FINE AGGREGATE

Work schedule

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ADMIXURE

MINERAL

WATER

CHEMICAL

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APPLICATION OF READY MIX CONCRETE (RMC) IN THE CONSTRUCTION INDUSTRY Ready mix concrete can be applied in foundation, building construction, highway, Bridges, walkway, retaining wall, Airport, tunnel, canals, pile foundation, water tower tanks, shear wall, Dam and power construction industries.

FEATURES OF READY MIX CONCRETE (RMC):

1. Better quality concrete is produced. 2. Elimination of storage space for basic materials at site. 3. Elimination of Hiring plant and machinery 4. Wastage of basic materials is avoided. 5. Labor associated with production of concrete is eliminated. 6. Time required is greatly reduced 7. Noise and dust pollution at site is reduced. 8 .No wastage on site 9. Environment friendly

LIMITATIONS OF READY MIX CONCRETE (RMC) :

1. Need huge initial investment. 2. Not affordable for small projects (small quantity of concrete) 3. Needs effective transportation system from R.M.C to site. 4. Traffic jam or failure of the vehicle creates a problem if the proper dose of admixture is not given. 5. Labors should be ready on site to cast the concrete in position to vibrate it and compact it. 6. Concrete's limited time span between mixing and going-off means that ready-mix should be placed within 90 minutes of batching at the plant.

SCOPE OF READY MIX CONCRETE:

1. Major concerting projects like dams, roads, bridges, tunnels, canals etc. 2. for concreting in congested areas where storage of materials is not possible. 3. Sites where the intensity of traffic makes problems. 4. When supervisor and labor staff is less. 5. To reduce the time required for construction etc. 6. Huge industrial and residential projects.

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Market Study Ready mix concert supply scenario is demanding According to current Ethiopia’s economy out of the total budget that is funded through donors and government big portion of the budget spend on infrastructures, such as Roads, buildings, and so on, Therefore concert supply demand have increased in tremendous amount since 2013 due to the country’s development policy that gives focus on infrastructure development. On the market study especially in Addis Ababa, most high rise buildings are currently using the ready mix concrete which is supplied by Chinese construction company’s and Aser construction well-known local contractor which provide ready mix concert. Even though there are ready mix suppliers in Addis Ababa, still the gap between supply and demand is huge due to the current constriction activates undertaken in the city and country. Addis Ready mix concrete supplier is planned to work on supplying ready mix concrete to satisfy the huge demand on concrete works on construction site, by providing a competitive and fair price with quality. The company plan is to produce 25m3/hr concrete.As the concrete technology stands now, ready-mix concrete is leading the infrastructure development the world over. That being the case, the paper at hand has tried to assess the level of popularity, relevance and acceptance for application within the local context; specifically in the Nation’s Capital, Addis Ababa. The effort as a whole is directly focused in examining the growth potential and challenges of ready-mix concrete’s market in the ambitious and yet need driven housing and infrastructure developments. The October 2011 survey of the City indicated that, a total of 578,547 households for the then predicted population was required. Out of those in service then, only 6.6% were of modern materials. Considering the high engagement of the City Government in vertical settlement development programs of condominiums and apartments, concrete is a major input to bring the effort to fruition. For this, RMC is the perfect choice to tackle the intricate situation of the inner City development

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ORGANIZATIONAL STRUCTURE AND MANAGEMENT

PROJECT MANAGER

HR( HUMAN RESOURCE)

MATERIAL ENGINEER

GENERAL STAFF

BACHING PLANT OPERATOR

LOGESTIC

FINANCE MANAGER

SALES ENGINEER

MANGER

FINANCE OFFICER

DRIVERS

PROCURMENT OFFICER

CASHER

As seen from the above organizational structure the ready mix concrete company management and staff structure designed to achieve the project objective. On the structural line work commination and line mangers have clearly specified for effective implementation. Over view of each main mangers and staff duties and responsibility’s described below. A) Project Manager: Is have the responsibility in manage the team, equipment and resources to achieve the ready mix concrete project objective. Is responsible for supervising, leadership, motivating and couching project staff. B) Human resource: includes the process that organize, mange, and lead the product team. Project team is comprised of the people with assigned roles and responsibilities for completing the project. Furthermore, it supervise general staff according to the given work description performance and discipline. C) Material Engineer: supervise the quality of the raw materials such us (cement, sand, aggregate, admixture and water) provided by the procurement officer for the concrete production. Moreover, supervise the batching plant operator on producing the specified quality concrete.

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D) Finance manger: make payments as per the allocated budget for each project activities and general staff and other necessary expenses to keep the project performing accordingly; mange and receive payments from concrete production sell. E) Logistic manager: Mange purchase orders and deliver raw materials and other necessary office materials as per the specified order and mange drivers of concrete mixer trucks and monitor drivers in delivering concrete to customer’s construction site. F) Sales Engineer: under the supervisor of the project manger the sales engineer will find market in the city, asses and effectively maintain and introduce the ready mix concrete business in profitable and market oriented way. Furthermore advertise company quality production concrete works for contractors and government construction organizations.

FINANCIAL STUDY The annual operational cost is calculated by several approaches, such as Maintenance and spare parts costs include Dump truck, wheel loader, concrete mixer truck, deer car, motorcycle, generator and laboratory. 1)Operational cost of batching plant, including fuel cost of 300,000birr/month and cost of raw material in the process of machining wet mix 1,500,000 birr/month 2) Personnel costs, including personnel costs are burdened by employee salaries of BIRR 200,000/month and for Batching Plant's core salary of BIRR 40,000/month. 3) Maintenance cost on batching plant operation and equipment fund amount 450,000 Birr/year calculated from assumption that annual maintenance cost is 10% of building batching plant. 4)General administrative cost including office stationary, house hold needs, photocopy, telephone amount 100,000 Birr/year From above the operational cost of the project in 2020 is BIRR 23,230,000

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Table 1; Main Activates and their cost centers. Activates

Cost Centers

1. Electrical maintenance 2. Vehicle maintenance 3. Riding scrap 4. Equipment and plant maintenance

Maintenance center

5. Management 6. Guard work 7. Marketing and advertising

Administration center

8. Purchasing Accounting center 9. General accounting

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10. Material receiving and shipping 11. Employee transportation

Transportation center

12. Weighing 13. Mixing Operation

Preparation of raw material

14. Quality Assurance

Development center

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FINANCIAL ANALYSIS 18 | P a g e

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CONCLUSIONS Ready Mix Concrete is a modern technique of production of concrete in massive quantities away from the actual site of placing. It is very useful where demand of concrete is very high and construction sites are in congested areas, where mixing on site is not possible due to lake of storage place. RMC is ready to use material. It is widely adopted throughout the world. It gives higher strength to the structure and it also provides higher Durability to the structure. It reduces noise pollution as well as air pollution. The Supervisory and labor costs associated with the production of RMC is less, and the quality of concrete is high. It is suitable for huge industrial and residential projects where time plays a vital role. So ultimately it provides economy in the construction and better finish to the structure. Hence the advantages of RMC are realized by engineers and contractors in the construction industry. As from the above financial calculation done. NPV> 0 NPV1 = 20,600,000 > 1 B/C > 1, which is 2.14 >1 IRR > r, IRR= 15.36 > 10 The above stated criteria’s for feasibility study qualified. Therefore, the project is project is feasible.

REFERENCES 1] Cooper, R., 1988a, The Rise of Activity-Based Costing- Part One: What is an Activity- Based Costing? Journal of Cost Management, 7(3). [2] O’Guin, M., 1991, the Complete Guide to Activity-Based Costing. Prentice Hall, NJ. [3] Sullivan, W., 1992, A New Paradigm for Engineering Economy. The Engineering Economist, 36(3).

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