SMALL BUSINESS MANAGEMENT ASSIGNEMENT - FEASIBILITY REPORT ON STANDARD MECHANISED GARRI PRODUCTION PLANT - Welcome! This is "The Other Woman In Marriage's Blog"

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This assignment, is to enable students have varieties. I want us to have different formats, so that you can choose the one your like and also, have something different from your Group Mate. Below is the Assignment for Small Business Management, and there are more others in the blog if you browse it.

Name:

The Other Woman In Marriage

Reg. No.:

07069373637

Dept.:

Business Administration

Faculty:

Management Science

Group:

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 REPORT ON STANDARD MECHANISED GARRI PRODUCTION PLANT

PREAMBLE

This feasibility report is on the production of clean healthy and standard Garri using complete mechanized Standard machines and process.

THE PLANT AND ITS CAPACITY

The plant will have an installed capacity to produce 3MT of Garri per day but production will commence at 2MT per day amounting to 600MT per annum working at 300 days in a single shift. The plant is being envisaged to package 3 types of Garri commonly sold in the Nigerian Market which are the Red oil Garri, Sour and the white Garri. Packaging shall be in branded bags.

RAW MATERIAL

The core raw material for the plant is cassava which is available in sufficient quantity in Nigeria. It is noteworthy that Nigeria produces the highest quantity of Cassava in the world. The other materials that will be used by the plant are water and packaging nylons or bags and red oil.

THE MARKET

The overall potential of Garri processing in Nigeria is huge. The consumption of Garri in Nigeria is massive. Production of Garri in Nigerian is predominantly on the micro scale and production is carried in the entire country.

CERTIFICATIONS

This plant to be used is designed to pass the SON and NAFDAC certifications, which means that its products can also be exported.

LOCATION

The plant will be located near any major commodity market where cassava is largely sold or near cassava farm gates. This ensures that cost of transportation of raw materials would not impede on the overall delivery cost of product. However, the plant can also be located in an urban area nearer to the consumption market.

CORE PRODUCTION MACHINERY REQUIREMENT

1. Cassava peeling machine 2. Stainless Steel Hammer Mill with electric Motor for grating Cassava tuber (can also be used as the granulator) 3. Fermentation Rack/Mechanical Press with hydraulic Jack for de-watering Fermented Cassava Mash. 4. Garri Frying Unit with gear motor, exhaust pipe, covered with Fiber 5. Medium Size Hammer Mill for milling dried Garri into fine particles.6. Stainless Steel Storage Silo for finished product(Optional)

REQUIRED MANPOWER

The plant would require 6 workers and 2 daily laborers totaling 8 staff.

FINANCE

This Plant makes uses of a fully mechanized processing method that brings efficiency and reduces waste and labour requirement. The startup capital excluding Land and infrastructure is between 4million Naira and 7 Million Naira. However to achieve reduction on setup cost the scale can be reduced or some of the process like peeling can be manually done, but this would require more labour hands.

The project will generate profit beginning from the first year of operation. Relevant ratios such as the percentage of net profit to total sales return on equity and return on total investment shows a promising returns. Percent gross on sales in the industry is about between 60% and 75%, overall profitability of the plant then would depend on how promoters manages its administrative expenses. Investment cost and income statement projection are used in estimating the project payback period. The projects will payback fully the initial investment in 2 years or less.

REFERENCES: