Cvp Analysis

Topics: Cost accounting, Costs, Cost Pages: 53 (14368 words) Published: December 23, 2012
About Company
UNITED PRECISSION TOOLTECH started its operations in the year 2006. Company has transformed themselves from a humble manufacturing unit to a multi dimensional industrial engineering tool manufacturing conglomerate. By meeting the needs of burgeoning industrial sector and catering to its every demand, they have been growing and evolving in new direction. Their manufacturing process covers a wide range of cutting tools and precise engineering tools. UPT Industries is a leading manufacturer and suppliers of high quality engineering tools and have been supplying to over 500 companies since 2006. About Project

The easiest way to evaluate the performance of the firm is to compare its present financial analysis with the past financial analysis. When financial analysis over a period is compared, it is known as time series analysis. It given the indication of direction of change and reflects whether the firm’s financial performance has improved, deteriorated or remained constant over time. The company should determine the changes, but more importantly understand why there cost structures are changed, Fixed Cost demonstrates a company’s ability to pay its current obligations. A class of financial metrics is used to determine a company’s cost structure and Cost, Volume and Profitability analysis.

Indian Machine Tool Industry is now a reckoned player among the global fraternity, although it ranks within top 15 in Production & top 10 in consumption. Imports constitute a significant part of consumption of machine tools. In India there are about 450 manufacturers manufacturing complete machines, or their components. There are 150 units in the organized sector. A significant number of the machine tool units comprise of small and medium enterprises. More than 70 percent of the total machine tools production in India is contributed by 10 major companies in this industry. The industry has an installed capacity of over Rs.10 billion and employs a large skilled and unskilled workforce directly and indirectly. The Indian machine tools industry manufactures almost the complete range of Metal-cutting and Metal-forming machine tools. Customized in nature, the products from the Indian basket comprise conventional machine tools as well as computer numerically controlled (CNC) machines. In keeping with the current trends and emerging demand, the CNC segment would be the driver of growth for the machine tools industry in India. Post liberalization era, witnessed the expansion of bigger companies, public sector giants shrinking and S M E companies mushrooming. Concerted efforts to inculcate In-house design capability, entrepreneurial spirit, technology friendliness and lean management etc., resulted in a significant shift in machine tools production to these medium sized companies. However, these companies produce Machine Tools, like CNC and Machines of higher capacity either singly, or in small numbers. Hence the manufacturing competitiveness of the smaller companies and their Sub-contractors, producing the components, has a major bearing on the industry’s growth - Quantity, Quality and Cost Competitiveness. There are a number of issues of critical importance to the industry. These are: • Low economies of scale.

• Bridging the technology gap of technologies absorbed vis a vis contemporary levels from abroad. • Competitiveness and Quality of machine tools manufacturers. • Development and retention of Design Pool.

• Skill Development of Technicians.
• Industry ready Engineers / Technicians from Engineering Colleges / ITI. Exports potential of Indian Machine tools
Indian Machines tools are currently exported to more than 55 countries. India exports less than 10% of the machine tools produced domestically. China followed by Germany has the highest consumption of machine tools in the world. As the global demand for machine tools...
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