The Bobbitt Group are
the most experienced professionals in the industrialized building
industry in development of new modular manufacturing businesses and plants.
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Development of a new
manufacturing facility is not something to be undertaken by novices.
The monetary investment required to develop a new manufacturing
plant is too great to be left to chance.
Your business
requires the assistance of a company like The Bobbitt Group.
Professionals who know how to develop and operate industrialized
building facilities and how to bring in your plant on time and
on budget.
Simply stated we assist
entrepreneurs, owners, investors and/or executive management in
the identification, definition and determination of the main
areas of a profitable business strategy.
To
be successful there are some key steps that must be taken to ensure the long term
viability and profitability of the endeavor.
The Bobbitt Group
will help in the development stage offering the following:
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Help select the type of industry
discipline.
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Help to determine the type of
business entity.
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Development of a feasibility
study and the business plan.
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Develop a financial plan
including assumptions, pro-formas & cash flow analysis.
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Development of financial data for
lenders and investors.
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Development of a Source and Use of Funds statement.
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Investor/lender payback and exit
strategies.
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Provide applicable technology
(Modular, Panelized, HUD-Code, Components).
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Assist in the development of the
plant plant
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Development of the
plant layout, equipment lists, staffing and training.
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Assistance in obtaining plant
approval.
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Defining the plants products.
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Defining the
plants
market area.
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Development of the distribution
network.
Regarding plant
specific items we will;
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Develop
the plant building requirements;
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Develop the plant
production layout;
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Development of the assembly line
showing the workstations;
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Workstation
scopes of work;
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Mill and
subassembly area;
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Material storage
and retrieval;
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Equipment list
with cost projections;
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sourcing and other industrial
engineering required to fully develop the factory.
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Plant staffing;
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Job
classifications and job descriptions;
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Wage plan;
We also provide hands-on guidance
in the development of the physical plant. Once the
physical plant building is completed, we offer our assistance in
the installation of all needed plant equipment and development
of the plant assembly line and the onset of production.
The uniqueness of each client
dictates the exact services needed. Under my personal direction
our consulting group can marshal its resources to assist you in
solving your unique business situation. |
Following
are some typical example of costs associated with production in a
modular manufacturing plant. Keep in mind these are general
rules-of-thumb and must be adjusted for product types, technology,
size of the manufacturing facility, staffing, skill levels, etc
A. BILL
OF MATERIALS:
This
component includes all the basic materials used in the construction process.
It includes all the rough
framing material whether they be of steel or wood; doors, windows, cabinets,
electrical, plumbing, paneling, roofing and also the finish materials.
Bill of Materials (BOM), as
a percentage of total cost, has risen a great deal over the past few years due to
the exploding cost of building materials. I have seen some recent examples of
the BOM reaching as high as 65%.
Most material costs, as a percentage of the wholesale selling price, should
be in the range as noted above.
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DIRECT
LABOR:
This
component is for the DIRECT PLANT LABOR, that labor used in the manufacturing process.
This is the labor hours necessary to build the standard
products produced by the factory. You
normally can "back into" this rate by determining the percent of labor
you are willing to pay for the production of a standard product.
To
arrive at the labor rate you multiply
the targeted sales price of the product by the
labor percent to get the total dollar amount for direct labor for a
single modular unit of production.
You would then determine
the total number of direct labor employees by dividing the labor allowance per
modular unit by the
average hourly rate you will be paying plant employees.
This will give you the maximum number of employees for each modular unit to be
produced by the plant.
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VARIABLE
MANUFACTURING OVERHEAD:
This
component contains all the manufacturing expenses that are tied directly to the
production rate. In other
words the total variable cost increases as more units are produced.
Most of these costs are reflected as a per unit cost rate.
Heat, light, power and expendable supplies are also included in this
category.
Also
included in this category are INDIRECT LABOR wages. These are for employees who
are not directly involved in the manufacturing process; but, support that
process. They include janitors; mill and subassembly personnel;
material handlers, etc.
D. EXPENSES:
This
component contains items that are of a fixed nature.
This means that regardless of the units produced these cost must still be
borne by the operation. These
include such line items a rent, mortgage payments; management salaries and
wages; sales and marketing costs; customer service and other general and
administrative expenses.
E.
GROSS OPERATING PROFIT:
This
component is the result of what is left after the above expense calculations are
deducted from the gross revenues. This
is stated as "gross" which means before taxes, interest expense, etc.
I have seen many business
plans that grossly understand the expenses involved in industrialized building
operations while at the same time OVERSTATING the projected income. In
most cases these numbers have been generated via a process of "making them come
out to predetermined estimates" rather than actual case scenarios.
Our work includes business
planning, technology assessment, technology implementation, staffing, training,
development of the distribution network and all other associated areas of
operations and support.
The Bobbitt Group has demonstrated
our
ability to take a business from the idea stage to full
operation. Over the years we have become recognized as one of the best
consulting groups within the industrialized building industry in the development
of business plans, feasibility studies and other planning documents needed
to guide the development of a new business.
Our copy protected proforma
operating states are unequalled and contain the most honest assessment of a
plants operating capabilities based on legitimate assumptions and not "pie in
the sky" numbers used to make "the numbers work."
Our main thrust remains in
consulting with and assisting individuals and companies who want to enter the
automated building industry. This work most often includes an assessment of the
proposed endeavor, general business consulting and the preparation and
implementation of their business plan of operations.
For More Information Contact:
William S. Bobbitt
The
Bobbitt Group
Tel: 480-982-6173
Email: WBobbitt@aol.com
Internet: www.thebobbittgroup.com
or, fill out the
information request form below:
