Simón I Patño University

Faculty of Economics
Commercial engineering degree

FEASIBILITY PROJECT ON THE IMPLEMENTATION OF A

NEW LINE OF WINDOW AND DOOR FRAMES WITH
PVC PROFILES IN VECAPVC
Brenda Melany Mollo Antezana
INTRODUCTION
Currently, there is a constant growth of the Bolivian population stimulating a greater
demand for the construction of structures such as buildings, housing, schools, establishments and
companies, which in some cases make massive consumption of this product, for which
they use aluminum, steel, and other material profiles.

In order to reduce the use of steel due to environmental issues and its high cost in
Bolivian market, the investigation of this feasibility project for an industry is established.
innovative that will reduce the cost of window frames in construction by a percentage
considerable for project managers and builders.

The windows in history have a very important function in construction. Light is

essential for human life, both for its necessity for the synthesis of certain vitamins,
due to the state of mood, and the care of some organs such as the eyes or skin. In addition, the being
Humans need air as an essential element to live and breathe. This is the foundation of the
windows.

Since the dawn of time there have been windows, the first ones thousands of years ago were no more
what large gaps or holes in the walls of houses, without any glass and their purpose was that
light and air entered. In case of the need for darkness or to stop the air, they were covered with wood or
straw.

Glass was created in the time of the Phoenicians, however it was not until a century after Christ that it
They used windows. The Romans were the first to use glass in windows, mainly in
the churches and they made lead rods that acted as support for those small glasses
size.

It is not until the 17th century that the wooden binder is created to hold the glass and according to
the years advanced and thinner glass and greater efficiency were achieved in its
manufacturing, glass was increasingly introduced into window manufacturing, achieving
larger dimensions and reducing costs.

PVC is an ideal material for applications that require high durability and just
it is the sector of construction in which aesthetic properties are required. For this reason, it absorbs
approximately 55% of global production in specific uses such as windows, doors,
walls, ceilings, blinds, pipes, and furniture. It offers the best quality-price ratio in
comparison with other materials commonly used in construction.

PVC can today be considered a harmless material, safe products, in which...

reduce to very low values at the level of the vinyl monomer (the harmful element). This substance,
in gaseous state, it was the one that caused health problems. So that
Currently, the production of PVC resin is an industry that does not pose risks to the
health, not producing gases or dust.
BACKGROUND
The constant population growth in Bolivia leads to high housing demand in the country.
as well as adaptations within properties of all kinds, especially of projects
residential and offices, has led builders to seek new trends in
construction materials that not only allow functional results but also be
Aesthetic, moreover, that comply with the norms and requirements demanded by the final consumer.

As construction progresses, industry professionals seek products that are

easy to install and in accordance with the standards. Among the multiple materials used we find the
profiles for window frames, an important part for the realization of finishes in the
construction of a property.

According to the National Institute of Statistics (INE), in the year 2018, Bolivia's GDP is 4.2%.
Construction 3.5%, as of the second quarter of 2019, Bolivia's GDP is 3.38%, and Construction
3.53%. In Construction, there was a growth of 3.53% with an incidence of 0.10 percentage points;
where private construction grew by 3.41% and public construction by 3.44%, which resulted in
it concludes that construction is a necessity and a priority in our country.

Around the world, window frame profiles are made with materials such as: wood,
iron, aluminum, and MDF (2); in some cases, the constructions contain frames that are a mix
of these materials. The potential of using new materials such as PVC for manufacturing
of profiles, and the advantages it presents in both durability and savings are vital for the
definition of the problem of the current project.

STATEMENT OF THE PROBLEM

From the above, the following problem is concluded:

The low competitiveness in the PVC product market and the growing demand for windows is
projection for the manufacturing of window frames that reduce construction time
and that they are low cost, with optimal standards and properties to eliminate the risk of deterioration
and moisture in materials intended for final consumers

Central problem: The problem found focuses on the low competitiveness of products.
PVC in Bolivia.
Efectos: Falta de variedad en los procesos de fabricación, Compra de materiales de baja calidad,
High prices in steel profile constructions
Causes: No other activities are suggested for PVC products, high costs of
production of profiles for windows and doors due to the increase in steel and others
construction materials, Lack of knowledge by PVC companies of the existence of new
PVC products, There is no innovation of new PVC products, Lack of studies of
feasibility for new PVC products in Bolivia, high prices of steel and iron in
Bolivia.
 Lack of variety in High prices in the
Purchase of materials
the processes of constructions of
of low quality
manufacturing steel profiles

LOW COMPETITIVENESS OF
PVC PRODUCTS IN
BOLIVIA.

No other suggestions are made.

High production costs
activities for the Lack of knowledge
of the profiles for windows and
PVC products of PVC companies
doors due to the increase
the existence of new
of steel and other materials of
PVC products
construction.

There is no innovation Lack of studies of High prices of

new products feasibility for steel and iron in
of PVC new products of Bolivia
PVC in Bolivia

INTRODUCTION TO THE STUDY METHODOLOGY

To achieve the set objectives, our methodology has been based on a combination of
quantitative and qualitative techniques for data collection, as well as in the use of techniques
qualitative data analysis, since only the combined use of both techniques
It allows designing an ideal tool for diagnosing training needs in the position.
of work and in relation to the technological changes of it.

The methodology to be followed must guide and lead the execution of the project in each of its
phases, drawing the appropriate strategies, techniques, and instruments for each stage.

In this sense, the first methodological objective was to establish the strategy to measure factors.
that will affect the PVC profiles market for planning the tasks to be carried out. They
they used qualitative techniques and instruments through a survey for the collection of
information from key informants (experts in the analyzed sector).

Regarding the quantitative techniques and instruments for obtaining the population, it was used
secondary information through the technique of internet research for determination
from the population sample.
OBJECTIVES

GENERAL OBJECTIVE

Study the feasibility of introducing a new production line for PVC profiles for doors.
and windows at the company VecaPVMto achieve being a competitive company in the market
Bolivian

Develop a proposal to improve the production process of windows and doors with profile
PVC in Bolivia

SPECIFIC OBJECTIVES
Make an executive diagnosis of the company VecaPVCto diversify the materials of
manufacturing of profiles for windows.
Analyze the window profile market for the introduction of PVC profiles in
Bolivia.
Establish the process engineering of the new production line.
Evaluate the economic and financial feasibility of the project.
Conduct the market study that determines both the supply and demand for frames.
for PVC doors and windows in the construction sector

MARKET RESEARCH

POPULATION A population of professionals will be managed considering professionals.

independent affiliates in the civil engineers college of Cochabamba (CIC -
Cbba), professionals, dependent builders who work in registered construction companies in the
Departmental Chamber of Construction of Cochabamba (CADECO - Cbba), builders, and
independent personnel for the purpose of implementing window profiles.

METHOD To determine the population of construction professionals, we resorted to

secondary information provided by the departmental chamber of construction
Cochabamba (CADECO - Cbba) which reveals that the total number of members is 148 construction companies, in
of the 243 who are professionals, they are dedicated to the construction of properties.

For this reason, the approximate number of independent professionals was also investigated.
construction through the civil engineers college of Cochabamba (CIC - Cbba). This
information revealed that there are approximately 176 professionals dedicated to construction
properties that operate in the city of Cochabamba.

Through the research done with secondary information, there are companies associated with the
departmental chamber of construction that are builders, but none of the
independent professionals investigated are registered with the chamber
SAMPLE CALCULATION:

The method of sample selection for the application of the research will be Probabilistic.
Stratified, meaning that the elements of the universe or total population will be divided by strata.
or subgroups due to the heterogeneity of the general population. The universe taken for the
The execution of the research involves 419 professionals working in construction.
real estate. The maximum allowable error for the application of the research will be 9%, with a
95% confidence level; the variables P and Q will have a value of 50%, since they have not been
previous investigations applied in the sector and it is not known for certain, the success or failure of
the investigation.

In this way, the formula to be applied for the calculation of the probabilistic sample is:
Where:

N=target population failure rate

Z = confidence coefficient. n = sample size

p = proportion of success e = estimation error

Replacing and applying the formula:

N Z p q e
419 ? 1.96 - level of 0.5 0.5 9%
95% confidence

419∗1.962∗0.5∗0.5
n¿ 2 2
( 418)∗0,09 + 1,96 ∗0,5∗0,5
n = 93 surveys

Interpretation: 93 surveys will be conducted with professionals in the city of La Paz dedicated to the
construction of buildings, both in construction companies and independent professionals.

FACTORS OF DEMAND

Market: It is defined by professional construction buyers and ordinary people

that acquire window frames for the finishing of building properties.

THE TARGET MARKET

The information obtained from the macro and micro analysis encourages seeking professionals in the
construction and ordinary people shown in the following chart
 DIMENSIONS DEMOGRAPHY GEOGRAPHICAL
USAGE PATTERNS
OF THE PRODUCT
Ages: From 23 to 60 years
Occupation: Professionals of the
construction and common people. Usage: Marcos
VARIABLES Male and Female Bolivia for windows in
Educational levels: In general. Cbba real estate.
middle, middle Permanent
tall and high

MACROENVIRONMENT

The import of aluminum profiles in Bolivia represents one of the reasons why it
foundations the project, the level of growth and the participation of people in this activity
continues to grow, parallel to the rising prices of construction materials despite
Import activities are constantly growing due to the high existing demand.

GDP. NATIONAL VS. GDP. OF CONSTRUCTION

Historically, construction has had a behavior similar to that of the national economy.
generally accompanying in a more pronounced way the growths and contractions of
country, this shows that construction within the country is one of the sectors with the highest
projection and that will continue to grow in the coming years
Interpretation:

In 2019, the national GDP growth rate is 3.53% and that of construction is 3.38%.
compared to the same period last year.

The Gross Domestic Product of construction has maintained positive growth rates since the
year 2010 to 2017 with an average of 5%.

CREDITS FOR HOUSING

According to the departmental construction chamber of Cochabamba, among the materials of

In construction, profiles play an important role when choosing finishes.
construction. Currently, and due to the construction culture in Bolivia, the list includes three
construction profile materials for windows considering aluminum, wood and
steel, concluding that:
PVC as a material for window construction is a new product that the
unknown builders.
PVC is a new market that can be exploited if it is done well.
research and efficient strategies.

PERMITS FOR CONSTRUCTION

Construction in Bolivia is constantly growing in urban and rural areas, contributing to

the possibility of implementing new building materials. The building permits
grants are for the construction of real estate and structures such as houses, buildings, shops, etc.
Interpretation:
The building permits approved by capital cities expressed in area,
they show a concentration of them in the capital cities (La Paz, Cochabamba
and Santa Cruz de la Sierra) representing between 80% and 85% of the total.

MICROENVIRONMENT

The local market in the city of Cochabamba is analyzed for the determination of demand.
because the project is located in this city. Also for the determination of
apparent consumption requires local importation

The importation of aluminum bars and profiles in the city of Cochabamba represents the third
city with the highest imports after Santa Cruz, represented favorably for the project.

METHODOLOGY FOR DETERMINING DEMAND

Demand analysis is one of the central aspects of project study due to

impact on the results for the production that will be implemented with the acceptance of the
project.

The main objective to be achieved with demand analysis is to determine the

factors that affect market behavior and the real possibilities of the product
can participate in the market. Therefore, the increase in population reveals a scenario
favorable for the increase of the market of potential customers.

The methodology used for determining demand is that of apparent consumption,

we will analyze Bolivian national production, imports, and exports from Bolivia in
in case of existence

APPARENT CONSUMPTION

Apparent consumption is the production of the country under study plus imports and minus the
exports, of the product under study. The apparent consumption method for the quantification of
The demand will be carried out through the apparent consumption formula (CA).

Where:
CA = Apparent Consumption of a Country or Real Consumption.

P = National Production.

M = Imports.

X = Exports.

The main objective of the analysis of apparent consumption is to know the number of profiles of
aluminum that is consumed in the Bolivian market. For this, it will be taken into account that in Bolivia
there is no production of aluminum profiles and smuggling is insignificant as is the
export resulting CA = M, which is why the only way to satisfy its demand is
making imports.

DEMAND PROJECTION

For the demand projection, the demand will be the result of the five types of profiles.
forecasted by the linear trend model carried out in order to calculate total demand.

The demand proportion is made based on an estimated percentage of the importer.

Murano Aluminios S.A. where the following method of importing profiles is established.
aluminum

PROJECTION: Proportion of imported aluminum profiles profiles

PROJECTION: Proportion of portfolio demand per profile in (kg of Al) 2007-2013

To obtain a projection of the demand data, we first statistically adjust.
through the model that best fits the demand resulting in a linear regression model
for the five types of PVC profiles, this with the aim of obtaining the trend that best
explain the behavior of demand; that is, to find the proportion of the variation of
this is regarding those that best explain their behavior; this aptitude corresponds to
various motivations on the part of economic agents.

The linear model is formed by the following equations:

PROJECTION: Formula for imported aluminum profiles

Conclusions of the results of the polynomial model:

It is obtained that the value of R2adjusted=0.7453

for all the linear regression models of our
project therefore there is a greater approximation to the historical data in the model.

PROJECTION: Estimation of projected aluminum demand in kg, 2017-2025

Based on the obtained equation, the demand forecast for the next ten was made.
years. The graph shows the historical behavior of the demand for aluminum profiles
for the aluminum profile cinco tops
As can be seen according to the projection made, the trend of demand is
increasing for all linear regression models, hoping with this proposed project
satisfy the consumers of the local market.

SUBSTITUTION INDEX

This index is determined to measure the percentage of aluminum profiles to be replaced.

represented by the following formula.

Where:

k = Expert factor

PmarketMarket percentage

The expert factor is determined by the percentage of acceptance of the local market achieved.
through hand-to-hand surveys resulting in an 87% market acceptance.
According to Kotler, the market that should be targeted is between 5% and 10%, where initially 5% is taken for
the first 5 years of the project and increasing in an ascending manner for the other years
completing the project's horizon.

PROFILE TYPE 1: Forecasted demand for profile type 1 in kg of Al

PROFILE TYPE 2: Forecasted demand of type 2 in kg of Al

PROFILE TYPE 3: Forecasted demand for type 3 in kg of Aluminum

TYPE 4 PROFILE: Forecasted demand for type 4 in kg of Al

TYPE 5 PROFILE: Forecasted demand for type 5 in kg of Al

MICROENVIRONMENT: Forecasted demand for aluminum profiles in Cochabamba in kg

According to Kotler's principle, the resulting market is the actual demand for aluminum profiles that is
obtained by multiplying the substitution index (i) by the demand for profiles. The
demand for PVC profiles should be obtained through a relationship of densities and masses and
with units of the International System of Measurements. The relationship resulting from the density of
aluminum of 2.7 (g/cc) and that of PVC of 1.45 (g/cc) is 0.54, a data that helps us to convert the
units of kg of aluminum per kg of PVC.

MICROENVIRONMENT: Conversion of profile demand to kg of PVC, 2017-2025

CALCULATION OF THE OPTIMAL PROJECT SIZE

For the calculation of the optimal project size, the Murcia equation must be taken into account.
and the weight of each profile according to its specification for the conversion to PVC profile bars.

Where:

tc(prom)demand growth rate

scale factor of the industry

Optimal project size

N = Useful accounting life of machinery and equipment

CALCULATION OF THE OPTIMAL SIZE IN KG OF PVC

Where it is considered for the project with a value of 0.35 and considering 9 years of useful life
of the project. The calculation of tc is developed as follows:

YEAR TOTAL
2017 1864109
2018 1969184 Tc= 4.22%
2019 2074259
2020 2179334
2021 2284408
2022 2389483
2023 2494558
2024 2599633
2025 2704708

2nd
tc R N alpha n 1/R^n member
0.95948 1.0000000
0.04 1.0422 9 0.35 1 7 0
0.92061 1.0000000
2 5 0
0.88331 1.0000000
3 8 0
0,84753 1,0000000
4 2 0
Qop=Qo(1tc)
op
0.81319 0.9999997
5 5 6
nop 8.6214 6
 1
0.9994442
Qop 2,662,688.55 7 0.74864 8
0.9731219
Qop 2662688 8 0.71831 3
0.70008 0.7006532
8.6214 5 8
0,68920 0,3000000
9 9 0

To calculate the optimal demand size, it is necessary to intersect between both equations.
to note at what point the optimum occurs and thus also be able to calculate the optimal demand of
PVC profiles
The calculation of optimal demand is carried out using the equation Qop = Qo(1tc)nop

Resulting in 2662688 kg of PVC.

ANALYSIS OF THE OFFER

The study of supply aims to identify how it has been addressed and will be addressed.
In the future, the demands or needs of the consumer. It is not usually an easy task to estimate.
some degree of certainty the offer in a specific project. However, through
Secondary information provides an approximate understanding of the behavior of supply.

MARKETING ANALYSIS
In order for the product to move from the product to the consumer, it is necessary to perform numerous
functions. Among these are logistical operations (transportation, concentration, storage)
and inventory management), financing, promotion, and obtaining information.

We will offer our customers ease in finding our products by locating ourselves in
easily accessible places with a high flow of construction materials such as
branches and shopping centers to have continuous circulation from the beginning and
I can create a well-known brand in the region.

The products that the company will manufacture are window frame profiles, which will arrive at
final consumer through marketing channels, which can be direct (producer–
It can be direct, where the consumer is involved, or it can be indirect, where other intermediary agents are involved.
(producer - retailer - consumer). The distribution system of the is also considered.
VECA companyPVC.

Producer - Consumer.- This channel will not be very frequent in the marketing system of
the company, considering that the order requested by the client must be of considerable magnitude,
it will be marketed through distribution channels where intermediary agents are involved.

Producer - Retailer - Consumer.- This channel and this distribution chain will be the most
frequent, for the marketing of the company's products, there will be retailers or
intermediaries that will handle the distribution until the product reaches the consumer
Finally, within this group of retailers, wholesalers and merchants are distinguished.
retailers.

The marketing of the products through this channel will take place with the order of the product.
by the intermediary merchant to the sales managers, depending on the product to
acquire, subsequently the requested product will be dispatched from the plant's warehouses to
through trucks to warehouses often of the wholesale or retail merchant. The
wholesalers will sell and distribute the product to retailers or in
some cases to the final consumer (provided that the order is considerable), the retail merchant,
will sell and distribute the product in smaller units to the final consumer.

MARKETING OPERATIONAL PLAN

One of the most useful characteristics of marketing is the ability to plan quite
guarantee the success of the company's future by relying on the answers we provide
to the demands of the market, as the environment in which we position ourselves changes and evolves
constantly, the success of the company will largely depend on its ability to adapt and
before these changes.

APPLICATION OF THE 4P'S

Kotler P. (2000) in his text "Marketing Management" defines the marketing mix as the
set of marketing tools that the company uses to advocate for its
Objects in the target market. However, there are several tools for the marketing mix.
For that reason, McCarthy classified these tools into four factors called the 4P's from the
producer's point of view. From the consumer's point of view, each tool of the
marketing, that is to say it is designed to provide a benefit to a customer.

a) PRODUCT

From a commercial point of view, it is any good, service, or idea that can be offered.
market for its purchase, for its use or for its consideration capable of motivating and satisfying
a buyer. It also builds the core of management and marketing strategy in
return to which the rest of the strategies will be designed. The rest of the Marketing Mix variables are
differentiating aspects that allow achieving a certain positioning of one's own
product on the market.

According to the Market Research, the product of window frames made with PVC profiles
it is accepted in 87% in the construction market, which will allocate its use in the
rough and fine work of constructions.

Regarding the brand, all these products will use the VECA [Link] enjoys a high
knowledge in the construction market, which is a strength that should be leveraged
for the introduction of these new products for the company.

The quality, characteristics, and technical properties of the new products will be defined by the
Machinery and equipment to be used, the appropriate production process, and the staff in charge.
b) PRICE

The price has a strong psychological content, both for the buyer (satisfaction)
sacrifices), both for the seller (costs/benefits), and it is also an essential variable in the
marketing strategy. On one hand, the price is determined by the overall perception of the
product / brand, and decisively contributes to the positioning of the brand. On the other hand, the
Price directly influences the level of demand, and therefore the activity of the company.
determining its profitability.

The price is determined in the Financial Evaluation chapter of the Project, however this
will be compared based on the reference prices of the best-positioned companies in the
market for products similar to ours, namely Importers of aluminum profiles,
wooden carpentries and metal carpentries, however a market price must be set
smaller to introduce and position VECA productsPVCin the market in the short term.

For new products, a sales discount scale must be structured and a

adequate management of accounts receivable, since in the liquidity cycle of the company
It must be minimal to meet the needs of this project.

c) PLAZA

The role of the square or distribution is to organize exchange and reduce disparities between
the supply and demand of goods and services, giving them an added value of state, place
Ytempo. It is the path that the manufacturer follows to bring their product to the final consumer.
generating a link between both.

The distribution of the products will take place with their launch just like the
current products of the company. In addition, it must ensure an acceptable profit margin.
marketing for new products.

d) PROMOTION

Promotion is necessary to improve the alignment between supply and demand, alerting the market.
about the existence and characteristics of the goods and services offered. Communication can be
to do through various instruments with different characteristics regarding their suitability,
effectiveness and cost.

For better positioning of the products, they should be promoted through:

Sales agents and promoters who inform about VECA's new productsPVCat the
construction companies, independent builders, suppliers, and places where
a civil work is being carried out.
A corporate image plan must be developed for the new products of [Link]
Provide catalogs, posters, and other visual forms for today's consumers and
new from the company

MACHINERY DESCRIPTION: Description of the 'Bausano' extrusion line

 Head structure (profiling mold)

Profiling Calibrators

BT200L Laser Miter Saw

Copying Milling Machine LIWZ FCR 250

Re-testing Milling Machine RET 270-45N

SOL 546-45N Double-Head Welder

1/2 Grinder Black and Decker BT 3600

BIBLIOGRAPHY

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BACA, Urbina Gabriel, 'Evaluation of Projects,' Fourth edition, McGraw-Hill, Mexico 2001, Page.
67