MAKING WOODEN FURNITURE PRODUCTS
Introduction
Wooden furniture products are very highly demanded products especially in the
construction sector, and in house furnishing. The project idea is developed on
the basis of establishing a small scale modern wooden furniture workshop with
an estimated fixed capital of 15,500US$, and operating costs of
121,053US$, generating revenue of 704US$ in the first year of active operation.
Production Capacity, Technology and
Process
The process involves application of skills so as to come out with a well-designed
wooden art product. The process mostly involves cutting wood in the desirable
measurements, shaping, bending, and chiseling and vanishing the wooden product.
The production capacity greatly depends on the machines designed capacity of
output, the skilled level of the manpower employed and availability of the raw
materials.
Market
Analysis
The market for wooden products is wide with major consumers being construction
companies, estate developers and individual buying etc.
Investment Scale, Capital Requirements
and Equipment
The investment scale is geared towards the set objectives of the project.
Capital Investment Requirements in US$
|
item |
units |
Qty |
unit cost |
Total |
|
Plainer |
Number |
1 |
2,500 |
2,500 |
|
Circular Saw |
Number |
1 |
1,250 |
1,250 |
|
Spindle |
Number |
1 |
1,500 |
1,500 |
|
Master Driller |
Number |
1 |
750 |
750 |
|
Bend Saw |
Number |
1 |
1,250 |
1,250 |
|
Thunder Saw |
Number |
1 |
500 |
500 |
|
Delivery Van |
Number |
1 |
7,000 |
7,000 |
|
Other Tools |
Number |
- |
750 |
750 |
|
Total |
15,500 |
Production
and Operating Costs
1) Production costs assumed are for 312 days per year with daily capacity of
producing 106 ft. of wooden furniture.
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.
Direct Materials, Supplies and Costs
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod cost/yr. |
|
Direct Costs |
||||||
|
Mivule |
Ft |
2.5 |
32 |
80.00 |
2,080 |
24,960 |
|
Mahogany |
Ft |
2.5 |
32 |
80.00 |
2,080 |
24,960 |
|
Musizi |
Ft |
1.25 |
23 |
28.75 |
748 |
8,970 |
|
Musambya |
Ft |
1.25 |
23 |
28.75 |
748 |
8,970 |
|
Nails |
kgs |
2.25 |
1 |
2.25 |
59 |
702 |
|
Vanish |
ltrs |
8.5 |
1 |
8.50 |
221 |
2,652 |
|
Smoothing |
Rolls |
17.5 |
1 |
17.50 |
455 |
5,460 |
|
Wood gum |
kgs |
14.5 |
1 |
14.50 |
377 |
4,524 |
|
Other |
- |
- |
- |
204 |
2,450 |
|
|
Sub-total |
114 |
260 |
6,971 |
83,648 |
||
|
General Costs(Overheads) |
||||||
|
Labour |
1,213 |
14,560 |
||||
|
Utilities |
688 |
8,250 |
||||
|
Rent |
142 |
1,700 |
||||
|
Administrative expenses |
217 |
2,600 |
||||
|
Cleaning and Toiletries |
100 |
1,200 |
||||
|
Selling and distribution |
260 |
3,120 |
||||
|
Miscellaneous expenses |
175 |
2,100 |
||||
|
Depreciation |
323 |
3,875 |
||||
|
Sub-total |
3,117 |
37,405 |
||||
|
Total Operating Costs |
10,088 |
121,053 |
Project Product Costs and Price
Structure in US$
|
Item |
Qty/ |
Qty/ |
Unit |
Prod |
Unit |
T/rev |
|
Musizi |
44 |
13,728 |
3.53 |
48,420 |
5 |
68,640 |
|
Mahogany |
62 |
19,344 |
3.75 |
72,632 |
6 |
116,064 |
|
Total |
106 |
33,072 |
121,052 |
184,704 |
Profitability Analysis Table
|
Profitability Item |
Per Day |
Per Month |
Per Year |
|
Revenue |
592 |
15,392 |
184,704 |
|
Less: Prod& Operating Costs |
388 |
10,088 |
121,053 |
|
Profit |
204 |
5,304 |
63,651 |