Egg Whipping Machine Case Study

There will be ten full-time workers hired in the first year to run honey-walnut cake factory in the first year. One people will be need to add eggs into egg whipping machine, one people need to add sugar into egg whipping machine. There other people are needed in the next step, shift flour, adding sunflower-seed oil, add honey to dough machine, then one more people need to put prepared dough into oven. Besides, two people will be responsible for cutting and packaging, and they will be organized in two shifts. Moreover, two people are responsible for product inventory and indent management. In sum, there will hire at leat 10 workers to do the whole honey-walnut cakes and by the end of the first year, due to the expansion of production, we would

Then they are going to turn the oven on to prepare it for 10 minutes. Pre-weighted materials are separately added in egg whipping machines, flour paste mixing machine, then the prepared flour paste was spread on baking tray of pre-heated oven, the baked honey-walnut cake was removed from oven after 40 or 50 minutes at 170 Celsius baking temperature, the exact time is adjusted depending on products’acutual conditions. Then, honey-walnut cake are delivered to packaging line.
For its closing procedures, all equipments are turned off and cleaned up after used. In addition, factory’s floor is swept. Then, they should check the equipments and make sure they are shut down. Finally the factory is closed.
4.4. Daily Production 10 ovens are purchased for honey-walnut cake manufacturing. Each of them can produce. In one hour each machine can produce around 20 pieces of 50 gram and it has three layers honey-walnut cakes. And wach machine works 12h per day. Therefore, the maximum daily production of honey-walnut cake is calculated to be 10 (ovens)x 20 (pieces) x 3 (layers) x 14.4h =8640 pieces(pieces)
5.0. Financial Analysis
5.1. Initial

Breakeven analysis As shown in figure 1 below, the break-even point is appeared at between 1st and 2rd quarters in the first year, which means total income supposed to exceed the total cost at between the 4th or 5th months. After that, this factory starts to earn money.

Figure 1: Break-even analysis in the 1st year
In the second year, product will start to be sold in Shanghai and other four different cities in Guangdong Province, therefore the sale is expected to increase to 4000 packs/day (4000 in the first half and 8650 in the latter half year), whereas transportation charge also increases to be ￥66,000/month which is ￥2,200/day. Because we want to promote production effienciency, we need to hire 4 more works, thus the consumption on salary increaded from 1160 to 1633.
The product sales increases from 1000 packs /day to 4000 packs/day due to powerful promotion and its increased market share. Through calculations, total annual net revenue in the second year is￥2883792.6
More details were shown in table 9.
Table 9: Net revenue of chlorella chip manufacturing industry in the 2nd year Daily income Daily cost Total net revenue Calculations
The first half ￥24000 ￥21093.93 ￥523092.6 Daily income: