In the competitive world of construction and manufacturing, understanding the return on investment (ROI) is essential. For businesses involved in brick or block manufacturing, having a clear and well-structured method to calculate costs and profitability can mean the difference between a thriving venture and an unsustainable one.
This blog will walk you through a detailed ROI calculation process based on an intuitive software tool designed to estimate costs, profits, and comparisons across various production models.
Begin your ROI calculation process by identifying the specific type of block you intend to produce. The interface will display a variety of block options, each designed to serve different construction needs. These typically include:
Carefully review the available choices displayed in the selection panel. Once you’ve determined the block type that aligns with your business or project goals, click on that specific option to proceed further.
Example: If you’re planning to manufacture Fly Ash Bricks, simply click on the “Fly Ash Brick” option from the selection list to move to the next step in the setup process.
After choosing the type of block you wish to manufacture (e.g., Fly Ash Bricks), the next step involves selecting the most suitable size for your production requirements. This is an important decision, as the size directly impacts material usage, weight, and production cost.
Key Points for Selection:
This step involves customizing the core specifications of your chosen brick product to ensure accuracy in cost and material estimates. Here’s a breakdown of what you need to configure:
Select the Brick Strength (MPa)
Density (Auto-Populated Based on Strength)
This auto-calculation ensures that the material properties are consistent with real-world standards.
Set the Height of the Brick (Customizable)
Input Quantity
Confirm Brick Dimensions
Review Volume & Weight (Automatically Calculated
After you have finalized the product specifications—such as size, strength, and quantity—the system will automatically generate a list of raw materials based on the type of brick you’ve selected. This helps streamline the process by providing a predefined material mix suitable for your chosen product.
Selection Based on Brick Type
Proceed to Cost Estimation
Once you choose the currency, the system will automatically navigate to the Base Mix Raw Material Cost & Recipe section.
Default Ratios & Custom Options
Choose Pricing Unit
Raw materials can be priced in various units depending on availability:
Example Calculation for Cement Cost:
You can choose the unit that best matches your purchase format.
Coarse Aggregate Pricing Options:
For Coarse Aggregates (such as 6mm, 12mm, etc.), you can select from four unit options depending on availability and measurement preference:
Coarse Aggregate Pricing Options:
For Coarse Aggregates (such as 6mm, 12mm, etc.), you can select from four unit options depending on availability and measurement preference:
Note: The total percentage must always equal 100%.
If the sum is more or less than 100%, the system will prompt you to adjust the values accordingly.
Entering Costs
Proceeding to the Next Step
The total cost is calculated per brick based on the weight distribution of each material.
Final Cost Breakdown:
Cost & Pricing Inputs
Your final report will be generated based on all inputs, including Product Specifications, Raw Material Costs, and Operational Costs.
It provides a detailed comparison across all 7 models:
This feature helps you evaluate performance and choose the most efficient and cost-effective model for your production needs.
Detailed Cost Analysis – Includes product pricing, raw material costs, and operational expenses
Comparison of Different Models – You can compare two models side by side.