MAKING WOODEN OFFICE CHAIRS
Introduction
This profile envisages the establishment of a furniture plant that manufactures wooden office chairs. This plant is very profitable due to the big demand for the products especially in public and private offices.
Production Capacity
This project will be established on the assumption that 120 chairs will be produced per month giving an average of 4 chairs per day.
Production Process
Office chairs are made from hard wood timber, which is cut to the required size and design, then fixed together using nails. The chair seats are made of modern seat covers.
Raw Materials
Hard timber and nails are the major
raw materials used in the making of office chairs.
Tools and Equipment
The major tools and equipment needed in the process of making office chairs
include:
1. Carpentry Equipment Kit
2. Power Saw
3. Molding machine
4. Power Drill
Scale of Investment, Capital Investment
Requirements
The total investment cost of the project including working capital for the first month of operation is estimated at USD 2,903.
Market Analysis & Projected Demand
The demand for office chairs is widespread across all sectors in the country, i.e. Education, Health, Trade, Government, Corporate, NGOs, among others. The best example of Investors in this Industry includes; ORCA, Hwangsung, Nina Interiors, plus other small scale projects spread all over Uganda.
Project Costs
The initial investment capital
requirements for one month are estimated at US$ 3,744.
1. Capital Investment Requirements in
US$
|
Item |
Units |
Qty |
Unit |
Amount |
|
Carpentry Kit |
No. |
1 |
400 |
400 |
|
Power Saw |
No. |
1 |
200 |
200 |
|
Molding Machine |
No. |
1 |
100 |
100 |
|
Power Drill |
No. |
1 |
50 |
50 |
|
Total Amount |
750 |
2. Operating Costs
|
Item |
Units |
Unit |
Qty/day |
Prod. |
Prod. |
Prod. |
|
Direct Costs |
||||||
|
Timber |
Pieces |
8 |
20 |
160 |
4,160 |
49,920 |
|
Nails |
Kgs |
2 |
5 |
10 |
260 |
3,120 |
|
Vanish |
Litres |
4 |
10 |
40 |
1,040 |
12,480 |
|
Top seat covers |
Pieces |
7 |
10 |
70 |
1,820 |
21,840 |
|
Sub total |
280 |
7,280 |
87,360 |
|||
|
General Costs (Over heads) |
||||||
|
Rent |
200 |
2,400 |
||||
|
Labour |
400 |
4,800 |
|
|
|
|
|
Utilities (Power & Water) |
300 |
3,600 |
|
|
|
|
|
Sub - total |
900 |
10,800 |
|
|
|
|
|
Total Operating Costs |
8,180 |
98,160 |
|
|
|
|
3. Project Product Costs & Price Structure in US$
|
Qty/day |
Qty/yr |
Unit |
Pdn Cost/ |
Unit |
T/rev |
|
|
Chairs |
10 |
3,120 |
31.5 |
98,160 |
35 |
109,200 |
4. Profitability Analysis in US$
|
Item |
Per day |
Per Month |
Per Year |
|
Revenue |
350 |
9,100 |
109,200 |
|
Less: Production & Operating Costs |
280 |
8,180 |
98,160 |
|
Profit |
70 |
920 |
11,040 |