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Monday, 11 May 2015

FEASIBILITY OF A COMPACT SMALL SCALE BISCUIT PRODUCTION PLANT SUBMITTED BY THE OTHER WOMAN IN MARRIAGE BLOG”



 
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.

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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