SMALL BUSINESS MANAGEMENT ASSIGNEMENT - DIFFERENT ASSIGNEMENT

NAME:                                   THE OTHER WOMAN IN MARRIAGE

REG. NO.:                              07069373637

DEPT.:                                    BUSINESS ADMINISTRATION

FACULTY:                            MANAGEMENT SCIENCE

GROUP:                                 C

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 TO THE ASSIGNMENT: CHOOSES ANY SMALL BUSINESS IN YOUR AREA AND CARRYOUT A FEASIBILITY STUDY OF THAT ENTERPRISE:

THE PRELUDE: This project profile is the production of cornflakes in small scale in Nigeria. The project can be planned  to produce a minimum of 5 tons of Packed Cornflakes for 275 days in a year in a single or double shifts operating  at 70 percent capacity and  then at 80 percent in the 2nd year and at 90 percent in the 3rd year.  Currently corn flakes are consumed by a portion of middle and upper income groups of the urban Nigerian population.  Statistics revealed a high demand for cornflakes is increasing in Nigeria.

PRODUCTION MATERIALS

The major Production materials for the production of corn flakes are maize (hybrid yellow and white corns) which is widely available in the Country. Nigeria Currently produces about 7,700metric tons of maize of which 60% is wasted due to non-preservation.  Sugar is another raw material used for the manufacture of corn flakes.  Other ingredients including cocoa powder and flavors all of which are widely available in the country.

PRODUCTION PROCESS

The milling process removes the corn kernels from the cobs and turns them into flaking sized ‘grits’. Malted barley can be added to enhance the flavor of the Corn Flakes. The corn grits are cooked in steam pressure cookers, at temperatures exceeding 100C. This cooking process lasts for an hour and softens the hard grits. During cooking additional water is incorporated in the form of steam which condenses and the water content in the batch rises to 30-35%. Then the hot grits are transported from the cookers to large driers via the network of pipes.

MACHINERY AND EQUIPMENT

1.    Storage (Silo) 2. Mixer 3. Extruder Cooker 4. Coating Machine 5. Storage Bin 6. Packaging Machine 7. Laboratory Equipment

INVESTMENT COST

The Plant can be started on a small and medium scale with total cost of setup starting at between 3million Naira and 5 million Naira excluding land and building. 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. 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 depending on management Capability.

REFERENCES:

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