An Entrepreneurship Project On

MANUFACTURING INDUSTRY OF COMPACT DISC

KRITIKA MAURYA-0501227437 GULMI PATANAYAK-0501227596 Branch-Information Technology 8TH SEMESTER

CERTIFICATION

This is to certify that KRITIKA MAURYA and GULMI PATANAYAK is studying in 8th semester, of Information Technology branch for the academic session 2008-09, bearing class roll no. 0501227437 and 0501227596 submitted his entrepreneurship report on MANUFACTURING INDUSTRY OF COMPACT DISC for partial fulfillment of B.Tech in Computer Science & Engineering has been given by B.P.U.T, Rourkela, Orissa.

Under the guidance of

Dr.Prof.Mrs.Rachita Mishra H.O.D IT Dept. Miss. Haripriya Rout Project In Charge -2-

ACKNOWLEDGEMENT
Completing a job has never been an easy go for a single person; often it is the result of invaluable contributions from individuals in the surrounding in a direct or indirect manner. I am deeply grateful to my advisor Miss. Haripriya Rout for having been a constant source of encouragement for my Business Plan Report on Compact Disc Manufacturing Industry. In my association with my guide for this purpose, I experienced not only his in-depth knowledge but also his affection towards me. I would like to thank all my friends who have helped me for successful completion of my report.

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DECLARATION

We Gulmi Patanayak and Kritika Maurya studying in 8th semester, of Information Technology department bearing registration no. 0501227596 and 0501227437 hereby declared that all my statements and data are true to the best of my knowledge and belief.

DATE:................................. PLACE:.................................. Signature

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TABLE OF CONTENTS
1. GENERAL INFORMATION...........................................................................5 2. WHAT IS ENTREPRENEURSHIP................................................................9 3. DETAILS OF THE PROPOSED PROJECT.15 3.1 BACKGROUND...16 3.2 RAW MATERIAL & DESIGN...19 3.3 MANUFACTURING PROCESS21 3.4 DATA.27 3.4.1 Land and Building 3.4.2 Machineries / Equipments 3.4.3 Miscellaneous Fixed Assets 3.4.4 Preliminary and Pre Operative Expenses 3.4.5 Working Capital 4. MARKET POTENTIAL..31 4.1. Present Demand and Supply of the Product Competition 4.2 Target Clients 4.3 Marketing Strategy 5. TECHNICAL KNOWLEDGE.34 5.1 Technical Know How Availability 5.2 Step by Step Description 6. PRODUCTION SCHEDULE36 6.1 Number of Working Days per Annum 6.2 Number of Working Shifts 6.2.1 Sales Revenue 6.2.2 Utilities 6.2.3 Salaries/Wages 6.2.4 Repairs and Maintenance 6.2.5 Selling and Distribution Expenses 6.2.6 Administrative Expenses 6.2.7 Total Cost of the Project 7. PROFIBILTY PROJECTIONS.41 -5-

8. QUALITY CONTROL43 9. BIBLIOGRAPHY.45

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Name of the Entrepreneur:

Gulmi patanayak and Kritika Maurya

Proposed Project:
A compact disc, or CD, is an optical storage medium with digital data recorded on it. The digital data can be in the form of audio, video or computer information. When the CD is played, the information is read or detected by a tightly focused light source called a laser (thus, the name optical medium).The CD is plastid disc 1.2mm thick and 12 cm in diameter, with a silver-colored surface that reflects laser light. The maximum playing time for music recorded on compact disc is 74 minutes. Mechanically, the CD is less vulnerable than the analogue record, but that doesnt mean that it must not be treated with care.

Major Product / Services:

Compact disc

Proposed Locations:
Bhubaneswar / Hyderabad / Bangalore/Mumbai

Type of Organization:
Hardware Development

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ENTREPRENUER PROFILE:
Name : Gulmi Patanayak and Kritika Maurya Educational Qualification: Bachelor of Technology Technical Skills: C, C++

TYPE OF THE PRODUCT / SERVICES:

1. Type of the Project : Compact Disc Manufacturing 2. Product / Services Description : It is a Product Oriented firm which Manufactures Compact Disc in the form of CD-R (Compact Disc Writeable) and CD-RW (Compact Disc Re writeable). With two different storage capacity 700MB and 128MB which are generally used in various field such as audio video recording and data storing etc.

3. Major Consumers : Our plan is to start our business with most of our local audio companies, video companies and Software companies. So that we can supply them with affordable price in comparisons to other manufacturers due to reduction in transportation cost. When we can able to grab a better market condition in local -8-

market we must tries to spread our business in global market. We also planed to target most of the office stationary suppliers.

PROMOTERS:
1. 2. 3. Capital from reliable and Supportive Capital Ventures The main Promoter of our project will be loans taken from banks. The company to whom our firm will collaborate will produce audio CDs, video CDS, game CDs, and software CDs etc

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The definition of Entrepreneurship is as diverse as the different functions of the Entrepreneur. A largely held view of the term is that an Entrepreneur is the person who brings about a change and possesses characteristics to implement ideas to benefit the society as a whole. Only a few people are talented enough to manage this change. Apart from this definition, a simple explanation of the term Entrepreneurship is that it is the person who wants to work for himself. The Austrian economist Schumpeter defines Entrepreneurship as an event that introduces a new product, a new product method, new markets or a new form of organization. According to Schumpeter, in a perfect scenario, these actions will help generate wealth by creating a demand in the market from a newly introduced innovation. Thus, a true Entrepreneur is one who combines the input factors in such a manner that will generate a greater output. This greater output from the various input factors will result in creating wealth for the society.

ENTREPRENEURSHIP AND SOCIETY

Entrepreneurship helps the society as well as the entrepreneur, itself. The benefits of an entrepreneurship may be divided into three distinct categories that include the benefits to the nation, benefit to the society and the benefit to the individual. As already discussed, an effective entrepreneurship venture fosters the production of wealth for a nation. When many of the entrepreneurship produce an output greater than the input, the economy of the nation is directly bolstered. Another advantage to the nation is the creation of jobs for its people. Such a job creation utilizes the human resources of that particular country and helps the natural talent materialize. With the new inventions and development in the new technology a nation can use its resources more effectively. Since, a majority of the entrepreneurship projects are private; it provides an environment of competitiveness which further increases the quality of the products in the national markets. By privatizing the local economy, entrepreneurship ventures help attract eager foreign firms who are otherwise reluctant to do business with the government subsidized economy. - 11 -

The income level of the average person and the standard of living of a society increase with every successful entrepreneurship project that is undertaken. There is an increase in the employment level on the regional scale. It is also noticeable that an entrepreneurship helps develop other entrepreneur businesses because of the extra incentives that it can provide to a new entrepreneur in the shape of capital, knowledge and technology. Entrepreneurship helps the societies to fulfill its basic needs in the world that calls for the survival of the fittest. Entrepreneurs lead by example in assisting the society and therefore boost the moral of the public. An entrepreneur helps himself while creating opportunities for others. It is a fact that by doing so an entrepreneur fulfills his creative urge. Each successful project carried out by the entrepreneur leads to self satisfaction. The greatest satisfaction is derived from the fact that the individual is his own boss and therefore can use its creativity without any fear of repercussion. The quality of every good entrepreneur project is the profit and the fame that such a career provides. Infect, entrepreneurs always enjoy respect and high status in their communities.

FUNCTIONS AND FEATURES OF ENTREPRENUERSHIP

Ever since the French economist Richard Cantillon tired to define the entrepreneurship, there has been a debate on the exact role and functions of an entrepreneur. Apart from the differences in defining the term, all of the economist from Adam Smith, David Ricardo to the\ modern economist like Mill and Marshall agree that entrepreneurship plays an important role in developing the economy by generating wealth. Early economist agreed that among the four factors of production, (land, labor, capital and organization) organization is the factor that is the coordinating factor that brings together the other three factors and the entrepreneurship is the element that powers and strengthens the organization. These economists approved that the entrepreneur has a vast understanding of the workings of the industry in which he determines to undertake the venture. Also, the entrepreneurship is a skill that not everyone possesses. The ability to be an entrepreneur is inherited and is displayed by a minority in a population.

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A few modern economists believe that entrepreneurship is itself the fourth factor of production that is the most important in driving a successful economy. These experts are of the view that entrepreneur are defined by their risk taking abilities and their intentions to fill in the void because of the existing lack of knowledge about a product. According to them the entrepreneur ventures are carried out where there is a gap in the development of a product. The entrepreneurs work to fill the gap by introducing something that increases the effectiveness of the already existing product. Still, many recent theories of entrepreneurship stress that it is not only the inherent and risk taking abilities of a person that can define an entrepreneur but also the ability to predict where the opportunity for growth exist. By grasping these favorable opportunities, an entrepreneur works to create a new product by using innovation. The new entrepreneurs are able to track the deficiencies in the demand and supply of the market and provide a new improved product, for which there will be a demand. It is true that a great amount of entrepreneurship projects in the developing countries can be attributed to inventing a new product, very few of the entrepreneurs can innovate a new product in less developed countries due to limited resources. Therefore, in the third world countries the definition of the entrepreneur can be modified to include those people who try to improve on the existing technology which is already present in the developing countries.

ENTREPRENUERSHIP AND BUSINESS ENVIRONMENT

The state of the society and the government are interdependent on the many entrepreneur projects being undertaken around the world. The role of each entrepreneurship projects differs widely on a global scale due to the disparities in the local business environment. In developing countries, the process of privatization has helped to eliminate restrictions on the kind of opportunities that exist in the market. Whereas, socialist countries have historically helped entrepreneurs who have shown keen interest in optimizing the plans of the government. On the other side, less developed counties have rarely provided the entrepreneur a thriving atmosphere. The major hurdles that the new entrepreneurs face are the availabilityof resources to carry out such a business. The most important is the allocation of funds that comes in the form of money to research and development. Another largely ignored factor is - 13 -

the availability of knowledgeable partners who can run a successful entrepreneurship after its initial stage. This is so because there is a great tendency for the entrepreneur to move from one project to another. The lack of knowledge on part of the management can halt the development process, if adequate training is not provided. Historically, women owned businesses have not been successful even in the developing countries due to the lack of government support. It remains the most significant problem in mainly the theoretical and male dominated societies. Governments can help improvise the entrepreneurial spirit by not only removing the hurdles described above but by creating an industrial atmosphere that is favorable to the structural change. If the resources are allocated from the losers to gainers by purchasing the sales of assets, the entry and exist of the firms and rise and fall of the industries, the governments can effectively allocate resources to the successful entrepreneurs. Experts agree that the most effective method of managing the entrepreneurship industry is to foster the start-ups. Among other techniques, this can be achieved by minimizing the paper work and formalities for the new starter. A single identification number should be issued to every new entrepreneurial project to track down each case. The authorization process should not take long and the case decisions should be made by a fixed date. Tax treatment of the new subsidiaries and the policies on induction of new employees should be simplified.

TYPES OF ENTREPRENUERSHIP
According to Schumpeter, there are five basic types of entrepreneurship projects. The introduction of a new good in the market is the first of these. By new product, it means something that has been invented and has never been available in the market. In simple terms, whenever a new invention is made, it is seen as an act of entrepreneurship. The second is the introduction of the new method of production. As we know that it is production of goods that forms the pillar of the economy. By new method, it is assumed that the method that is effective and efficient and is able to improve on an existing production method. The third type of entrepreneurship is the opening of a new market. Whenever, such resources are provided that enables the population to benefit, whether it is an economic, education or any other benefit, it - 14 -

establishes a new opportunity that is known as a new market for using that particular resource. The fourth factor is the conquest of a new source of supply. Economist believes that a new supply source allows the industry to increase its productivity. This new source can be in many forms including the discovery of a natural resource (oil, steel etc) or attracting a labor force that hasnt been exposed to that industry. The last but not least is the carrying out the new organization of industry that will increase human welfare. Although, all of the five types of entrepreneurship are important but according to Schumpeter, the most influential is the introduction of the new product in the market (invention) that will directly increase the human welfare. The remaining four factors indirectly affect the human welfare by reducing the cost. Therefore, in order for the remaining four factors to contribute, it is important that the first factor be present and it can only be done with the invention of a new product.

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Ever since the invention of the phonograph in 1876, music has been a popular source of home entertainment. In recent years, the compact disc has become the playback medium of choice for recorded music. A compact disc, or CD, is an optical storage medium with digital data recorded on it. The digital data can be in the form of audio, video, or computer information. When the CD is played, the information is read or detected by a tightly focused light source called a laser (thus the name optical medium). This article will focus on audio compact discs, which are used to play back recorded music. The history of the compact disc can be traced back to the development of electronic technology and particularly digital electronic technology in the 1960s. Although the first applications of this technology were not in the recording area, it found increasing use in audio components as the technology evolved. During the same period, many companies started experimenting with optical information storage and laser technology. Among these companies, electronic giants Sony and Philips made notable progress in this area. By the 1970s, digital and optical technologies had reached a level where they could be combined to develop a single audio system. These technologies provided solutions to the three main challenges faced by the developers of digital audio. The first challenge was to find a suitable method for recording audio signals in digital format, a process known as audio encoding. A practical method of audio encoding was developed from the theories published by C. Shannon in 1948. This method, known as pulse code modulation (PCM), is a technique that samples a sound during a short time interval and converts the sample to a numerical value that is then modulated or stored for later retrieval. The storing of audio signals in digital form requires a large amount of data. For instance, to store one second of music requires one million bits of data. The next challenge, therefore, was to find a suitable storage medium to accommodate any significant amount of sound. The solution to this problem came in the form of optical discs. An optical disc can store large amounts of data tightly compressed together. For example, one million bits of data on a CD can occupy an area smaller than a pinhead. This information is read by means of a laser beam that is capable of focusing on a very narrow area as small as 1/2500th of an inch. The final challenge of digital audio was to process the densely packed information on compact discs quickly enough to produce continuous music. The solution was provided by the development of integrated circuit technology, which allow the processing of millions of computations in just micro-seconds. By the late 1970s, a common set of standards for the optical storage discs had been developed by the joint efforts of Sony and Philips. A consortium of 35 hardware manufacturers agreed to adopt this standard in 1981 and the first compact discs and compact disc players were introduced in the market in 1982.

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Making a compact disc involves first preparing a glass "disc master." This master is then encoded with the desired information and put through a series of electroforming steps. In electroforming, metal layers are deposited on the glass master using electric currents. When the final master version is ready, its information is transferred onto a plastic disc. A reflective aluminum layer is applied, followed by a clear acrylic protective layer, and finally the label.

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RAW MATERIAL
A compact disc is a deceptively simple looking device considering the technology required to make it. CDs consist of three layers of materials: - 20 -

A base layer made of a polycarbonate plastic. A thin layer of aluminum coating over the polycarbonate plastic. A clear protective acrylic coating over the aluminum layer.

Some manufacturers use a silver or even gold layer instead of the aluminum layer in the manufacture of their compact discs.

DESIGN
The compact disc is designed strictly according to the standards established by Sony and Philips in order to maintain universal compatibility. A CD is 4.72 inches (120 millimeters) in diameter and .047 inches (1.2 millimeters) thick. The positioning hole in the middle is .59 of an inch (15 millimeters) in diameter. A CD usually weighs around .53 of an ounce (15 grams). A standard CD can store up to 74 minutes of data. However, most CDs contain only about 50 minutes of music, all of which is recorded on only one side of the CD (the underside). The recorded data on the CD takes the form of a continuous spiral starting from the inside and moving outward. This spiral or track consists of a series of indentations called pits, separated by sections called lands. A tiny laser beam moving along the track reflects light back to a photo sensor. The sensor sees more light when it is on a land than when it is on a pit, and these variations in light intensity are converted into electrical signals that represent the music originally recorded.

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This business plan is to install a manufacturing plant for compact disk. In such a location where we can easily get the raw materials and target market. Our manufacturing process will go through the following process.

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1. Premastering

First, we ensure the CD-ROM content provided by our customers meets the proper ISO standards when it is organized on the disc. This is an essential step to guarantee quality for professionals who require precise, high quality data reproduction that is backed by ISO certification.

Figure 1.1-Premastering

2. Mastering

Then we create a glass master covered with a photosensitive layer and engrave all our customers information on it with a laser light. To help fight against piracy on behalf of our customers, the plant engraves its International Federation of the Phonographic Industry (IFPI) number on every glass disc it produces. Following that, a fine silver coating is applied to the glass masters surface by a process known as vacuum evaporation.

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Figure 1.2-Mastering

3. Electroplating

The glass master is then transformed into a mould which is used to press discs. This is achieved by adding a layer of nickel on the glass master by means of electrolysis. The nickel layer is then separated from the glass base to recover the negative of the CD. The result is what is called the stamper. Other masters can be produced by repeating the electrolysis phase.

Figure 1.3- Electroplating

4. Pressing
With the mould ready, CDs can now be replicated. Liquefied polycarbonate is then injected into the mould and, after only a few seconds of pressing, a compact disc containing all the data is quickly created. - 24 -

Figure 1.4- Pressing

5. Metallization
In order for the CD to be readable, it must be covered with a micro thin layer of aluminum which is vacuum laid. The aluminum surface acts as a mirror to reflect the laser light back so information can be read.

Figure 1.5- Metallization

6. Varnishing
To protect the CD and its information from harm scratching, bending, or dropping it the disc is covered with a layer of varnish. The lacquer envelops the aluminum and seals it from the elements. The disc is then ready for printing. - 25 -

Figure 1.6- Varnishing

7. Label Printing
The final touch comes with the printing of the label right on the disc, either by a silk screen or offset process or with up to six colors. The result is a clean, polished appearance.

Figure 1.7 Label Printing

8. packaging
The CD is automatically packaged and prepared for shipping. We are committed to providing customers with the highest quality printing services and the most complete selection of packaging solutions in the industry. We know the importance of choosing packaging that has maximum customer impact, and - 26 -

offer a variety of options from cost-saving automated packaging to custom-made solutions.

Figure 1.8 Packaging

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3.4.1 Land and Building:

Serial .No. 1. 2. 3. Particular Land Plant Building Area Required 2 acres 1500 Sq Feet 2 acres 15000 Sq. Feet Total : Total Value(Rs) 10,00,000 25,50,000 25,50,000 Remarks Permanent purpose Manufacturing plant Buildings for accommodating the entire staff.

51,00,000

3.4.2 Machineries / Equipments:

Sr. No. 1 2 3 4 5 6 7 8 9 10. Description CD Mastering machine Electro plating machine Processing machine Metallization machine Varnishing machine Label printing machine Packaging machine Computers Printers Scanners Nos. Required 2 2 2 2 2 2 2 15 5 5 Rate(Rs.) 50,000 10,000 15,500 10,000 7,000 5,500 22,000 30,000 3,000 3,500 Total: Total Value(Rs.) 1,00,000 20,000 31,000 20,000 14,000 11,000 44,000 4,50,000 15,000 17,500 7,22,500

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3.4.3. Miscellaneous Fixed Assets:

Serial No. 1. 2. 3. 4. 5.

Particular Personal Computers Documents and Stationeries Printers Furniture Phone and fax

Requirement 10 Paper, Office Accessories etc 4 Sofa, Chair, Table, etc 2

Rate (Rs.) 32000 30000 2000

Total Value (Rs.) 3,20,000 30,000 8,000 30,000 10,000

Total

3,98,000

3.4.4. Preliminary and Pre Operative Expenses:

Serial No. 1. 2. 3. Particulars Interest during Implementation Establishments Start Up Expenses Total : Amount (Rs.) 64,000 15,00,000 20,15,000 22,46,200 Remarks If we take a loan of Rs 80,00,000 For creating the Business Area For starting the Business

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3.4.5 Working Capital:

Serial No. 1. 2. 3. 4. Item Raw Material Salary Interest on Loan Rent Total : Rs. 3,25,000 15,00,000 8,00,,000 7,50,000 29,60,200

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4.1. Present Demand and Supply of the Product Competition:

We have to make compact disc that will use by all the audio & video companies & local softwares/hardwares vendors. This is going to help a user in many ways. There are no further charges of this product. The CD system technology has come a long way in the last few years, and new applications for compact disc systems are being discovered every day. The market has already seen the introduction of CD-ROMs, CD-Videos and CD-Interactive. The latest product to attract consumer attention is Kodak's Photo-CD, which can display photographs on television and computer screens. These pictures can be edited or cropped by the user, just like clip art images. Our plan is to start our business with most of our local audio companies, video companies and Software companies. When we can able to grab a better market condition in local market we must tries to spread our business in global market. We also planed to target most of the office stationary suppliers. Hence we get the market of small businessmen to youngsters who are in large numbers hence our business will do well during the start and flourish afterwards.

4.2 Target Clients:

Our main target clients are sarthak music, Samrat cassettes, TP musics ,T-series & local software companies like-NTCS, 3M business solution private ltd. That includes around the 70% of the total population and which is a large target section.

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4.3 Marketing Strategy:

The Marketing Strategy will be advertising the product in the media and by companys representatives by visiting various target clients and by making them aware of the features, application and the type of technology used in product. Our main aim is to target all those above music companies & software companies all over the country.

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5.1 Technical Know How Availability:

Books related to CD manufacturing process, Chemistry, Polymer Science and Material Science. Different working platforms like Windows, Linux etc and processing skills like premastering, mastering, electroplating, varnishing, labeling for the enhancement of the CD manufacturing technology and for development of the new technology.

5.2 Steps by Step Description:

1) Study and analysis of whole project: - It includes knowing the full manufacturing process of the project i.e. what the project means and how to do the project. 2) Design of the Compact Disc includes these processes:Premastering. Mastering Electroplating Pressing Metallization Varnishing Label printing Packaging

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Number of Working Days per Annum:

The Industry will remain open for all weekdays except Sundays and National holidays.

Number of Working Shifts:

Since it is a service and production firm it follows a shift system which has working hours from 9:00am to 5:00 pm for 1st shift and from 10:00pm to 6:00am for the other.

6.2.1 Sales Revenue:

The sales revenue of the business depends on the number of clients it has dealt with in the present year. Year No of Items 700MB CD-R 2007 700MB CD-RW 128MB CD-R 128MB CD-RW Quantity sold per Unit Price year 40,00,000 5,50,000 10,00,000 1,50,000 In Rupees 3 10 3 10 Total: Total Realization(Rs) 1,20,00,000 55,00,000 30,00,000 15,00,000 2,20,00,000

Utilities: Serial No. 1. 2. 3. Particulars Expenditure (Rs.) Power/Electricity 1,50,000 Water Miscellaneous Total : Salaries/Wages: - 38 10,000 30,000 1,90,000 Remarks

Serial No 1. 2. 3. 4.

Particulars Skilled Semi-skilled Unskilled Office Staff

Numb ers 3 8 18 10

Wages/Salary per month (Rs.) 75,000 1,20,000 1,26,000 1,00,000 Total :

Annual Expenses (Rs.) 9,00,000 14,40,000 15,12,000 12,00,000 50,52,000

Repairs and Maintenance: Repair and Maintenance charges are based upon the amount of work to be put in by the system manager and team to get the assignment finished correctly and completely.

Selling and Distribution Expenses: Serial No. 1. 2. 3. Particulars Amount (Rs.) Publicity Expenses 1,00,000 Traveling Commission Total : 80,000 10,000 1,90,000 Remarks

Administrative Expenses:

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Serial No. 1. 2. 3.

Particulars

Amount (Rs.)

Remarks

Stationery\Printing 40,000 Post\Telephone Entertainment Total : 6.2.7 Year 1 Interest: Outstanding Loan Amount (Rs) 80,00,000 Interest 8,00,000 Installment(Rs.) 9,00,000 Balance(Rs.) 88,00,000 30,000 1,00,000 1,70,000

Depreciation:

Sr. No. 1. 2.

Type of Asset Computer A.C.

Cost of Asset 30,000 20,000

Expected Life 5 yrs 5 yrs

Depreciation 15,000 5,000 Total

Total Amount(Rs.) 3,00,000 25,000 3,25,000

Misc. Expenses: Sr. No. 1. 2. 3. Description Furniture Coffee Maker A.C. Total Rent: - 40 Cost 40,000 5,000 1,00,000 1,45,000

Sr. No. 1. 2. 3. 4. Building Electricity Water Phone

Item

Rs. 6,00,000 1,50,000 10,000 30,000 Total 7,90,000

Total Cost of the Project: Sr. No. 1. 2. 3. Particulars Fixed Capital (Total of item No.2.1,2.2,2.3) Working Capital margin (Total of item No. 2.5) Preliminary & Pre-operative Expenses (Total of item No. 2.4) Total Value(Rs.) 23,80,500 29,60,200 22,46,200

Total 75,86,900

Means of Finance: Sr. No. 1. 2. 3. 4. Particulars Own Investment Term Loan Working Capital Loan Any Other Source Total: 1,16,86,900 Amount (Rs.) 30,00,000 80,00,000 6,86,900 Remarks

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Serial No. 1.

Particulars Sale Realization - 42 -

Amount (Rs.) 2,20,00,000

2. i. ii. iii. iv. v. Vi Vii Viii Ix

Cost of Servicing/Manufacturing Utilities Selling and Distribution Salary \ wages Administrative Expenses Interest Rent Depreciation Misc. expenses Annual working capital Total Gross Profit Income tax Net Profit 1,90,000 1,90,000 50,52,000 1,70,000 8,00,000 7,90,000 3,25,000 1,45,000 30,00,000 1,06,62,000 1,13,38,000 33,08,000 80,30,000

3. 4. 5.

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A compact disc is a very precise and accurate device. The microscopic size of the data does not allow for any errors in the manufacturing process. The smallest of dust particles can render a disc unreadable. The first quality control concern is to ensure that the clean room environment is properly monitored, with controlled temperature, humidity, and filtering systems. Beyond that, quality control checkpoints are built into the manufacturing process. The disc master, for instance, is inspected for smoothness and its photo resist surface for proper thickness by means of laser equipment. At later stages in the process, such as before and after the aluminum coating is deposited and after the protective acrylic coating is applied, the disc is checked automatically for warps, bubbles, dust particles, and encoding errors on the spiral track. This mechanical checking is combined with human inspection using polarized light, which allows the human eye to spot defective pits in the track. In addition to checking the discs, the equipment used to manufacture them must be carefully maintained. The laser cutting machine, for instance, must be very stable, because any vibration would make proper cutting impossible. If strict quality control is not maintained, the rejection rate of CDs can be very high. - 44 -

BIBLIOGRAPHY
MAGAZINES: 1. CHIP 2. DIGIT 3. PC WORLD 4. PC QUEST 5. Red Book (audio CD standard) 6. DVD-Audio 7. Computer hardware 8. Phase-change Dual 9. DVD-ROM 10.CD/DVD authoring 11.CD shattering 12. MultiLevel Recording, an obsolete technology (with non-binary modulation)

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WEBSITES: 1. 2. 3. 4. 5. 6. 7. www.wikipedia.com www.google.com How CDs Work from HowStuffWorks.com Andy McFadden's CD-Recordable FAQ Understanding CD-R & CD-RW by Hugh Bennett Inside a CD-ROM drive from The PC Doctor Comparative perspective on CD data transfer rates. Database for examination

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