Name: The Other
Woman In Marriage
Reg.
No.: 07069373637
Dept.: Business
Administration
Faculty: Management
Science
Group: A
Level: 500
Course: Small Business
Management
Course
Code: Bus 413
Topic: “Choose any small business in your
area and carryout a feasibility study of that enterprise”
SOLUTION:
FEASIBILITY OF A
COMPACT SMALL SCALE BISCUIT PRODUCTION PLANT SUBMITTED BY THE OTHER WOMAN
IN MARRIAGE BLOG”
INTRODUCTION
Biscuits continue to be the most consumable wheat-based bakery product. They are highly nutritious, easy to digest, compact in size, can be preserved for a long time and are easily and cheaply transportable over a long distance because of their lightweight.
Biscuits continue to be the most consumable wheat-based bakery product. They are highly nutritious, easy to digest, compact in size, can be preserved for a long time and are easily and cheaply transportable over a long distance because of their lightweight.
This feasibility stressed on the Plant that
will utilize a compact and yet Standard Manufacturing System and machines to
achieve economy of scale. The Plant will
produce 250KG of biscuits per day working for 8 hrs. daily of 300 days a year.
MARKET POTENTIAL: The market
potential is phenomenon and a small standard and Compact plant of this size
affords manageability and profitability. The market will continue to grow yearly because
Biscuits will never cease to be a favorite of both the young and the old
especially, school children whose parents on the average spend between N50 and
N100 daily on this products per child.
PLANT CAPACITY: The plant
Production plan is to produce both the soft and the hard types of Biscuits in
the Market and can be accommodated in a small Compact Production Area. The
plant will have an installed capacity to produce 50kg of Biscuit per hour. But
will produce 250kg daily of biscuit daily working for a single shift, 8 hours a
day, and for 280 days a year, and then will grow annually for 25% until the
installed capacity is achieved.
MAN POWER: The plant will
employ 3 factory workers both skilled and semi-skilled and 3 administrative
staffs.
EQUIPMENT AND
MACHINERY:
The Machinery is compact semi-automatic biscuit machine, Packing machine and a
set of working tools. The total motive power is less than 3kva which means that
the plant will consumes less in Gas and reduce production Cost.
FINANCE: Total Project
cost is about 5 million Naira including Rent, Certifications, Machineries,
Generator, Small delivery Van, set of working Tools and Working capital. Set up
Cost can be reduced where investor already has some of the Equipment.
Annual production cost for this capacity is about 2.3M which includes material usage and utility
Turnover for the first year is projected at -N- 10.M and a net profit before taxation of 7.0M is feasible if Complexities are adequately managed.
According to the projected income
statement, the project will start generating profit in the first year of
operation. The project’s initial investment will be fully recovered within 1
year and half.
REFERENCES:
Google Search Engine, 2015.
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