Project Feasibility Calculations

These are some offhand calculations to gauge whether cutting bottles actually save
money or it is better to transport the bottles as such without cutting them.
Truck used for the calculations: Ashok Leyland Boss LX (mileage at
http://www.vicky.in/trucks/ashok-leyland-boss-lx-mileage/, specifications at
http://www.vicky.in/trucks/ashok-leyland/boss-lx/).
Average mileage of 4kmpl assumed.
Now without cutting the bottles, the limiting factor for how many bottles the truck
can carry is the volume of the carriage which is calculated to be about 14 m 3 .
Considering the volume of 500 mL bottles to be 700 cm 3 , the truck can carry 20k
bottles per trip.
(Revision: The bottles are assumed to have a volume of 350 cm 3, so the
truck can carry 40k bottles now.)
With bottles cut beforehand, the limiting factor is now the weight of the plastic
bottles. Taking a bottle to weigh about 21 gm, kerb weight of the truck being about
4500 kg and gross weight to be about 12500 kg, the truck can now carry 4 lakh
bottles per trip.
(Revision: The truck now has the capacity reduced to be able to carry 50k
bottles per trip.)
Now to calculate the energy cost of cutting the bottles, the motor is assumed to
generate 7 Kw power. Assuming 10 seconds for each bottle to be cut, it takes 40
lakh seconds to cut all the bottles, and the motor consumes 7*4000000/3600 =
7777.77 units costing about Rs 62000(at Rs 8 a unit).
(Revision: Now to calculate the energy cost of cutting the bottles, the
motor is assumed to generate 7 Kw power. Assuming 10 seconds for each
bottle to be cut, it takes 5 lakh seconds to cut all the bottles, and the
motor consumes 7*500000/3600 = 972 units costing about Rs 7776(at Rs 8
a unit) ).
To calculate the diesel cost for transporting the bottles, assuming 300 km round trip
for the truck to go from Pilani to Delhi it would take 25 litres of diesel every trip
costing about Rs 3750. So for 20 trips it would take Rs 75000.
(Revision: To calculate the diesel cost for transporting the bottles,
assuming 300 km round trip for the truck to go from Pilani to Delhi it
would take 25 litres of diesel every trip costing about Rs 3750. So to
transport 50k bottles it would take 1.2 trips costing around Rs 4500.)
So the cost benefit in cutting the bottles before transporting is about Rs 13000.

(Revision: Taking in the new figures gives a cost shortfall of Rs 3276, i.e. it
takes Rs 3276 more if we process the bottles through our RVM than if we
transport it directly.)
Keep in mind that some figures are very rough and the actual cost benefit would be
much higher, apart from the environmental goodwill that the project generates.
(Revision: Even a cost shortfall is not bad as the government gives
handsome subsidies to recyclers and if we are able to find a bigger truck,
we can easily be able to make a profit.)
Do tell if you find any figure that is not looking proper to you and I would change the
calculations with the proper figures, also tell If I have missed something.