MAKING BUCKETS
Introduction
Buckets are a household item in many homes mainly used to draw and store water and to wash clothes. They are however used to carry other items as well. They are popular because of their durability and multipurpose use. They are quite common in rural areas, although urban dwellers use them too. The project idea has been developed to tap into the existing market for metallic buckets. The project estimates fixed capital of US$ 2,800, operating costs of US$ 168,066, generating revenue of US$872 in the first year of operation.
Market Analysis
Buckets and drums are common in schools and training institutions and places of communal gatherings like community centers. The major key players in this field include; Mukwano Group of Industries, Nice Plastics and others are imported
Production Process
Buckets are manufactured out of galvanized iron sheets. The GI sheet is cut into required sizes within conical shapes. These are then assembled and swaging as a main production process is done. A handle is made out of cut to size steel rod and fitted on to the body. Utmost precision is focused on the fixing of the bottom to the body to ensure it does not leak.
Capital Investment Requirements in US$
|
Item |
Units |
Qt |
Unit |
total |
|
Shearing machine |
No |
1 |
750 |
750 |
|
Bending Machine |
No |
1 |
500 |
500 |
|
Hand operated circle cutting machine |
No |
1 |
500 |
500 |
|
Press Hand operated |
No |
1 |
400 |
400 |
|
Office furniture Fittings |
No |
- |
- |
150 |
|
Tool Kit & other tools |
No |
- |
- |
500 |
|
Total |
2,800 |
Production
and Operating Costs
Direct Materials, Supplies and Costs
|
Cost Item |
Units |
Unit Cost |
Qty/day |
Prod
Cost/ |
Prod Cost/month |
Prod Cost/yr |
|
Direct Costs |
||||||
|
Galvanized Iron sheet |
Pcs |
40 |
12 |
480 |
12,480 |
149,760 |
|
Steal Rods |
Pcs |
45 |
0.5 |
23 |
585 |
7,020 |
|
Rivets |
Pcs |
0.1 |
22 |
2 |
57 |
686 |
|
Sub-total |
35 |
505 |
13,122 |
157,466 |
||
|
General Costs (Overheads) |
||||||
|
Rent |
200 |
2,400 |
||||
|
Labour |
300 |
3,600 |
||||
|
Utilities |
175 |
2,100 |
||||
|
Cleaning and Toiletries |
50 |
600 |
||||
|
Miscellaneous |
100 |
1,200 |
||||
|
Depreciation |
58 |
700 |
||||
|
Sub-total |
883 |
10,600 |
||||
|
Total Operating Costs |
14,006 |
168,066 |
1) Production costs assumed 312 days per year with daily capacity of producing 36 buckets.
2) Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.
3) Direct costs include: materials, supplies and other costs that directly go into production of the product.
4) Total monthly days assumed are 26-days.
5) The valuation currency used is United States Dollars.
Project Product Costs and Price Structure
|
Item |
Qty/ |
Qty/yr |
Unit |
Prod |
Unit |
Total |
|
Buckets |
36 |
11,232 |
14.96 |
168,066 |
21 |
235,872 |
Profitability Analysis Table
|
Item |
Per day |
Per month |
Per year |
|
Revenue |
756 |
19,656 |
235,872 |
|
Less: Production and Operating Costs |
539 |
14,006 |
168,066 |
|
Profit |
217 |
5,650 |
67,806 |