Financial Summary

Financial Summary:

The crane design has been broken down into many sections which either perform specific roles or group together parts which will be sub-contracted through different sources and companies for efficient logistical operation and to ensure costs are saved by mass purchase.

We will now break down the financial summary into the following stages to build a picture of costing considerations used:

·         Part Costing

·         Crane Kit Costing

·         Sub-Contracts

·         Further Considerations

Pricing of Parts

Below is the cost breakdown of all of the crane components. Each component is priced per unit and all components are made from 7075T6 Aluminium unless stated:

Top Section

·         I Beam – h=135mm   w=150mm  5000mm                                                             £214.51                                 www.aluminiumwarehouse.co.uk

Side Sections

·         Side Section – 150mm x 150mm x 3mm                                                                  £155.52                                 www.aluminiumwarehouse.co.uk

·         Corner Joint – Each unit would require 2 lots of the following:

-          2 channel extrusions (C – Shaped)   4 x £11.46 = £45.84

-          1  7075T6 Al Sheet                                    2 x £2.09 = £4.18              

-          Fabrication Cost                                                        £80                         £130.02

        www.aluminiumwarehouse.co.uk

Quad pods

·         Foot Holders – 50mm x 3mm                                                                                      £12.82                                   www.aluminiumwarehouse.co.uk

·         Centre Mounts – 165mm x 165mm x 5mm                                                           £10.37                   www.aluminiumwarehouse.co.uk

Lifting tackle

·          Bow shackles – STEEL – 2 at a working load 2.3 tonnes                                   £8.38                     www.machinemart.co.uk

·         Lifting hooks – STEEL – 4.5 inches – 2 tonne working load                              £35.89                   www.ecrater.co.uk

·         D rings – STEEL – 2 inches – 1.1 tonne working load                                          £1.95                                     www.simplyscuba.co.uk

Pins & Clips

·         Steel pins (top beam) – 4 at £0.30                                                                             £1.20                                     www1.mcsdirect.com

·         Steel pins (assembly pins) – 12 at £0.33                                                                  £3.96                                     www1.mcsdirect.com

·         R clips - 40mm -16 at £0.10                                                                                           £1.60                                     www1.mcsdirect.com

Lifting Harnesses

·         Lifting slings – 4m with 2m lift – 2 tonne capability – 4 at £5.10                     £20.40   www.scaffolding-direct.co.uk

·         Lifting straps – 2m – 2 tonne capability – 3 at                                                       £3.95   

www.megatradestore.com

·         Ratchet strap -  38mm x 6m – 2 at £9.13                                                                 £18.26                                   www.power-tools-pro

Total Cost Per Kit:

A full list of parts and components can be found in a table at Annex of the Appendices. The full price for one unit in parts works out to be £874.33 and the remaining overheads include:

-          Part Fabrication -      £240 / Unit

-          Labour Costs -           £50 / Unit

-          Packaging -                 £5 / Unit

The overheads include provision of materials for each process and completion of each process also bringing the total cost per kit to £1169.33 per Unit.

To ensure our Company remains profitable we will put a 40% profit margin onto the RRP meaning that the modular crane kit can be offered at a per unit price of £1637.06.

Sub-Contracts:

The majority of the parts for our crane come from material suppliers in an inoperable condition and require fabrication. For this reason we will be using sub-contracted companies to carry out the following roles:

-          Fabrication (welding of components into parts) – local company.

-          Material Suppliers (e.g. www.aluminiumwarehouse.co.uk)

-          Kit Assembly / Packaging – local company

By using sub-contracts we are able to provide discounted rates to the unit price for high demand orders based on requirements.

Further Considerations:

The Company are able to compliment the current crane kits if successful at tender by offering a range of additional lifting tackle, spares and servicing packages. The basic crane kit meets all of the design brief points to good effect and can be compared to similar products already on sale within various markets:

Competitive Company Comparison:

“Lifting Safety” is a nationally recognised company who retail a full range of small, medium and large Aluminium gantry cranes, capable of lifting between 0.5 and 5 tonnes. The target users include vehicle mechanic companies, building sites and other low level industrial type uses. It could be easily adapted to go to tender for this design brief.

In comparison to the Taurus Integrated Technologies crane kit it is less functional due to its limited leg adjustability and does not include any lifting tackle or harnessing to move loads. It is also less durable due to its grade of aluminium and is vulnerable to salt corrosion; adversely affecting its lifespan within the role we can cater for.

The most significant comparison is the cost. “Lifting Safety” produce a small gantry crane of similar dimensions which has a RRP of £2100 per unit. This is a difference of £462.94 per unit meaning that if a 3^rd World Country were to require 10 units, we could offer a saving of £4629.40 without considering the reduced unit price we could offer for a bulk demand.

Fig. 1 – A table showing the range of gantry cranes available from ‘Lifting Safety’ and the price per unit.

Conclusion:

By finding suppliers of standard parts and materials and using sub-contracts with local companies, Taurus Integrated Technologies have produced a highly functional, competitively priced Emergency Crane kit which will be of high demand to any potential users.

Company Reference:

http://www.liftingsafety.co.uk/product/aluminium-gantry-crane-3085.html#pricing