Monday 6 October 2008

CAD/CAM/CNC PRECISION COMPONENT MACHINING



HUFRA-COMPU-TECHS, LIMITED.


CAD/CAM/CNC PRECISION COMPONENT MACHINING






Executive Summary

HUFRA-COMPU-TECHS (hereinafter referred to as “HUFRA” or the “Company”) was incorporated in June 2002 as a private limited liability company under the laws of Ghana. The Certificate for commencement of Business was obtained on 4th June 2002. The Company is geared towards providing services to clients in the mining, automotive, agricultural sector and large-lot manufacturing industries in Ghana and other West African countries. HUFRA intends to expand its activities to provide sub-contract design and general manufacturing engineering services.

The objects of the Company are set out in its Regulations are as follows:

Computer Aided Design (CAD),
Computer Aided Manufacturing (CAM) and
General Engineering Services.

Location
HUFRA’s principal place of business is located at the free zone enclave at the Tema Export Processing Zone. The manufacturing facilities of the Company are also located in the same place as the principal place of business. The location is also has been designated to have several facilities including direct power supply from the VRA.

Business Activities
HUFRA is a sub-regional designer, manufacturer and distributor of machine tools, specializing in precision computer numerically controlled material-cutting machines. The business activities of HUFRA includes the design, manufacture, service/repair and reconditioning of machines and machine parts through the utilization of Computer Aided Design (CAD), Computer Aided Manufacture (CAM) and Computer Numerical Controlled (CNC) technologies. The Company relies on high precision computer controlled material-cutting turning machines, grinding machines, and vertical machining centers, and accessories related to those machines in its machining activities. The technology allows the company to deliver products that are known for accuracy, reliability, durability and value.

HUFRA creates precision parts for the mining, hydraulic equipments & earth moving machinery; automotive OEM spare parts and after market fitting equipments; agriculture pre-harvesting tractors, tools, accessories, spare parts & post-harvesting agro-processing machinery; construction and crane machinery; medical machinery, implants and human parts; marine and boat engines, winches and machinery; telecommunication spare parts; oil production machinery

Technology
HUFRA’s machines are generally computer controlled and use commands from an integrated computer to control the movement of cutting tools, grinding wheels, part positioning, and in the case of turning and grinding machines, the rotation speeds of the part being shaped. The computer control enables the operator to program operations such as part rotation, tooling selection and tooling movement for a specific part and then stores that program in memory for future use. The machines are able to produce parts while left unattended when connected to automatic bar-feeding, robotics equipment, or other material handling devices designed to supply raw materials and remove machined parts from the machine

Land Building, Plant & Machinery
The Company operates from the free zone enclave in the Tema Export Processing Zone, having been registered under the Free Zones Act, as amended. HUFRA currently operates from a rented premises with the factory floor measuring approximately 0.5 acres x 1 acre square foot more or less. The company has however acquired a piece of land within the free zone enclave which is earmarked for future expansion and relocation. The land measures 2 acres square more or less is earmarked for the construction of the administrative and factory building from 2009 after fund raising activities.



Project Description
HUFRA’s project involves the use of computer-based software to assist engineers and machinists in machining or prototyping products components. The company boasts of an ultra-modern facility that features CAD/CAM application tools and computer numerical controls machine tools driven and powered by a state-of-the-art fast and modern computer processes mounted on a network platform to improve communication. CAD/CAM technology allows the design and manufacture of a precision- engineered part as the CAD application software tools generate 3D solid models and 2D drawings. The CAM application tools generate numerical-controlled (N-C Code) and a virtual reality simulation of the machining process, while the verified NC-Code controls the operations of the CNC capable machine tool. A Coordinate Measuring Machine (CMM) is used for reverse engineering and inspection of finished parts. This ensures that the component is accurately designed and machined, while scrap and machine tool collision is avoided.

HUFRA’s equipment line include 5-Axix CNC Mill-Turn Machining centre, 3-Axis CNC Vertical Machining Centre and 2-Axis CNC Lathe Turning Centre. Other machines used at the company’s facilities include CNC Surface, ID, OD grinders, automatic saw, TIG, MIG, and ARC welding sets with rotary welding positioner. The Company’s entire workshop facility thus allows it to design cost effective spare parts ranges for imported machinery and also repair and/or recondition most other engineering equipment-hydraulic cyliners.

The Company designs and manufacture with commercial sharing standard replacement parts;

· for any worn physical machinery’s parts,
· specialised machinery and special purpose equipment,
· obsolete parts for very old machineries,
· bespoke created parts,
· prototypes,



Products and End Users
HUFRA’s main business will be the design, manufacture, service, repair and recondition of such items as:

· Mining, Hydraulic Equipments & Earth Moving Machinery;
· Automotive OEM Spare Parts & After-Market, Fitting Equipments;
· Agricultural Pre-harvesting Tractors, Tools, Accessories, Spare Parts & Post-harvesting Agro-processing Machinery;
· Construction & Crane Machinery;
· Marine & Boat Engines, Winches & Machinery;
· Telecommunication Spare Parts; Oil Production Machinery.

The targeted end-users of HUFRA’s products will be those in the automotive sectors either as dealers or repairers, mining companies, agricultural sector operators and manufacturing sector operators. In terms of market coverage, end-users will be principally in sub-regional countries as Nigeria, Ghana, Guinea, Equatorial Guinea and Chad where there are major mining activities.






R&D, APPRENTICESHIP SCHEME, CAD-CAM-CNC TRAINING FACILITY

CAD-CAM-CNC TRAINING FACILITY
Up to date Michael have trained 25 Ghanaians CNC Technicians for HCT and 7 Ghanaian CNC Technicians for other companies.
HUFRA-COMPU-TECHS, Ltd. “HCT”
CAD-CAM-CNC PRECISION MACHINING

CERTIFICATE OF ACHIEVEMENT

This is to certify that
WILLIAM PIERE
OF HCT
has successfully completed an industry standard on the job training course in CNC Technician
Training comprising of:

“BASIC LEVEL”

Ø CNC fundamentals “Coordinate System” as applied in CNC Machine Tools
Ø CAD Software Application “3D Solid Modelling Basic”
Ø CAM (Lathe) Software Application “Programmer Basic”
Ø CAM (Milling) Software Application “Programmer Basic”
Ø 2-Axis CNC Lathe Turning Machining Center “Operator Basic”
Ø 3-Axis CNC Milling Machining Center “Operator Basic”
Ø CNC Machine Tool Tooling, Clamping & Fixturing “Basic”
Ø CNC Machine Tool Maintenance “Basic”
Ø Part Inspection, Instrument Calibration & Quality Assurance “Basic”
Ø Geometric & Dimensioning Tolerance “Basic”
Ø Sketch “Basic”
Ø Engineering Designing Principles “Basic”
Ø Engineering Material Selection “Basic”
Ø Engineering Material Science Principles “Basic”
Ø Implementation of Computer Integrated Manufacturing “Basic”
Ø MRP & MPP “Planer Basic”

“INTERMEDIATE LEVEL”

Ø CAD Software Application “3D Solid Modelling Intermediate”
Ø CAM (Lathe) Software Application “Programmer Intermediate”
Ø CAM (Milling) Software Application “Programmer Intermediate”
Ø 2-Axis CNC Lathe Turning Machining Center “Operator Intermediate”
Ø 3-Axis CNC Milling Machining Center “Operator Intermediate”
Ø CNC Machine Tool Tooling, Clamping & Fixturing “Intermediate”
Ø CNC Machine Tool Maintenance “Intermediate”
Ø Part Inspection, Instrument Calibration & Quality Assurance “Intermediate”
Ø Geometric & Dimensioning Tolerance “Intermediate”
Ø Sketch “Intermediate”
Ø Engineering Designing Principles “Intermediate”
Ø Engineering Material Selection “Intermediate”
Ø Engineering Material Science Principles “Intermediate”
Ø Implementation of Computer Integrated Manufacturing “Intermediate”
Ø MRP & MPP “Planer Intermediate”

“ADVANCED LEVEL”

Ø CAD Software Application “3D Solid Modelling Advanced”
Ø CAM (Lathe) Software Application “Programmer Advanced”
Ø CAM (Milling) Software Application “Programmer Advanced”
Ø 2-Axis CNC Lathe Turning Machining Center “Operator Advanced”
Ø 3-Axis CNC Milling Machining Center “Operator Advanced”
Ø CNC Machine Tool Tooling, Clamping & Fixturing “Advanced”
Ø CNC Machine Tool Maintenance “Advanced”
Ø Part Inspection, Instrument Calibration & Quality Assurance “Advanced”
Ø Geometric & Dimensioning Tolerance “Advanced”
Ø Sketch “Advanced”
Ø Engineering Designing Principles “Advanced”
Ø Engineering Material Selection “Advanced”
Ø Engineering Material Science Principles “Advanced”
Ø Implementation of Computer Integrated Manufacturing “Advanced”
Ø MRP & MPP “Planer Advanced”
Period Training Carried Out: 15 / 07 / 2006 - 15 / 02 / 2007
Site: HUFRA-COMPU-TECHS, Ltd. “HCT”
Instructor: Mr. Michael Frank
Signed:
(For and on behalf of HUFRA-COMPU-TECHS, Ltd. “HCT” )
Apprenticeship Scheme & Collaboration with Educational Institutions
To ensure a backup supply of qualified personnel, HUFRA is also developing partnerships with educational and other institutions. HUFRA has already entered into discussions with the Kwame Nkrumah University of Science and Technology to explore the possibility utilizing HUFRA’s facilities for practical aspect of their degree programme. Similar discussions are planned for other institutions, especially the polytechnics and technical institutions.
Research & Development
HUFRA’s research and development program will involve creating new products, modifying existing products to meet market demands, and redesigning existing products, both to add new functionality and to reduce the cost of manufacturing. The research and development department will be staffed with experienced design engineers with varying levels of education, from technical through doctoral degrees.
HCT will invest significant time and manpower resources in research and development (R&D) to remain current with technological developments and to develop its spare part ranges. The company's state-of-the-art CAD/CAM architecture will form the R&D platform, as it's capable of generating virtual reality simulations of any product design and manufacturing process.
The company expects to re-invest 15% of its annual revenues in R&D activities in:
· Parametric, feature-based design and NC-Code generation of standard and non-standard precision engineered components.
· Optimising the manufacturing operations using Lean and Kaizen techniques to reduce costs and improve quality.
· Automating workshop repair and reconditioning practices where practicable to reduce time-to-market and increase volume-to-market.
· Remaining current with regards to ISO Standards, CAD/CAM architecture, technology and industry best practise
· Actively involve in New Product Development “NPD”.
· Developing new replacement products for the automobile and agro mechanical industries
Much R&D will be in collaboration with the Kwame Nkrumah University of Science and Technology in Kumasi. An agreement has already been negotiated with the University’s head of Mechanical Engineering Department that the facilities there will be allocated for such R&D.

HCT CNC FACTORY PART4

HCT CNC FACTORY PART3

HCT CNC FACTORY PART2

HCT CNC FACTORY PART1

FUNDING USD 10m FOR CNC TECHNOLOGY FOR AFRICANS

Current Financial Structure
HUFRA has invested about US$1.8 million in its project to date. This has been invested in the acquisition of plant & equipment, leasing of premises and working capital. The investment was financed by an equity capital of US$1.4 million and a debt component of US$0.4 million. Thus as at the balance sheet date December 31 2007, the company’s debt to equity ratio was 1:3 in favour of equity. The debt was secured through a loan facility from the Stanbic Bank Ghana Ltd. The loan facility is euro-denominated and has a 2-year tenor and attracts an interest rate of 21% per annum.

Expansion Plans
HUFRA intends to embark on an expansion plan that will involve the acquisition of machining plant and equipment to augment the existing ones and thus enable the Company meet the demanding machining requirements of industries such as aerospace, medical, oil and gas. The expansion plan will enhance the machining capabilities of HUFRA as it will extend its activities to cover both horizontal and vertical machining activities. The company will in the process set up a mill-turn machining centre, milling machining centre and a lathe turning centre. It will also invest in a CMM capability, which will enhance the company’s inspection capabilities.

Objectives of the Expansion Plans
· Invest in the highest specification equipment in order to produce the latest tooling equipment.
· minimise component production cost by minimising or eliminating manual intervention.
· position the company to maximize the opportunities inherent in its status as a first-mover company by meeting anticipated huge orders from Ghana and other West African countries.
· position HUFRA as a one-stop precision machining centre providing a wide-range of machining services to meet clients’ needs.
· attract an institutional investor to assist in designing good control environment and control systems, as well as good work environment.
· reconstitute board and management to improve board and executive functions.

Investment Needs
The total cost of the project expansion is estimated @ GB£5.116 Million (US$10 Million) with the following breakdown:

Fixed Assets
£4.009 Million (US$7.843 Million)
Stock
£0.936 Million (US$1.831 Million)
Working Capital
£0.171 Million (US$0.334 Million)
Grand Total
£5.116 Million (US$10 Million)

HUFRA estimates that it will require US$10 million in additional funding to meet its investment needs under the expansion plans.
HUFRA has already expended an amount of US$1.8 million in the acquisition of some of the plant and equipment, leasing of factory and administrative premises and initial working capital. The amount of US$10 million itemised in the table above as the investment needs is exclusive of the US$1.8 million already invested in the company. Thus when the amount required for the investment is fully committed, it will bring to US$11.8 million the total amount of money spent on the Company.

Financing Plan
Financing of Project Expansion through Equity
.
The above project expansion is expected to be financed through the floating of Ordinary Shares
@ US$1 : 1(one) Ordinary Share.
10,000,000 (ten million) Ordinary Share expected to be floated with a corresponding amount of US$10 million, an equivalent of GB£5.116 million (Rate GB£1: US$1.9546) in return of 41% total ordinary shares.
In return for any equity investment on this, HCT are offering investors negotiable percentage of the company’s issued ordinary shares with full voting rights. Investors can expect to exit the company at the end of year 5 either through a trade sale or share buy-back that should realise 6 folds for investors.