MANUFACTURING HAIR AND SAFETY PINS

• Manufacturing
• Metal and Plastic Products

Introduction

Hair and Safety pins are commonly used items by various members of the society. The hair pins are particularly popular with women who use them at all levels. These products are produced in different sizes and designs. Some are produced for decorative purposes and both items are consumed in big numbers. As for Safety pins, their use varies from office to workshops and homes. These items are currently imported from China and Malaysia. The project requires an estimated fixed capital of US$ 13,050 and operating costs of US$95,701generating revenue of US$ 960 in the first year of operation.

Production Capacity, Technology and Process

Hair Pins production process is done through an Automatic Hair pin making machine in different stages. A wire of appropriate diameter is fed into the machine through a wire stand, then a straightening roller for straightening, then another machine for curving and then cut to size with the help of a guide plate and a cutter. These pins are put through dies that make the final shape. They are then sprayed and baked. As regards Safety pins, the wire of required diameter is fed into an automatic wire straightening roller where it is straightened, cut to size and grinded. The cut pieces are transferred by a conveyor for rough and final grinding of its edges. Meanwhile the strips of required gauge and size are fed into the machine where the blank is made then shaped in the form of a head. The two, wires and the blanks are assembled into safety pin by the assembling machine.

Market Analysis

Hair pins are popular among women of all ages especially in the urban areas where they are heavily stocked in the saloons. However, these items trickle down to the country side. Safety pins have a multiplicity of uses and Decorators, Designers, Schools, Hospitals and Clinics are major users. However, this industry is not well developed in Uganda.

Capital Investment Requirements in US$

Item	Units	Qty	Unit cost	total
Automatic hair pin making machine	No	1	3,000	3,000
Wire straightening, cutting &grinding machine	No	1	1,500	1,500
Blanking & Forming machine	No	1	1,000	1,000
Assembling machine	No	1	2,000	2,000
Electroplating Plant	No	1	2,500	2,500
Tumbling Barrel	No	1	750	750
Motor Cycle	No	1	1,000	1,000
Painting Equipment	No	1	300	300
Furniture & Fittings &office equipment	No	-	-	1,000
Total	13,050

Production and Operating Costs in US$
Direct Materials, Supplies and Costs

Cost Item	Un its	Unit Cost	Qty/da y	Prod Cost/ day		Prod Cost/month	Prod cost/yr
Direct Costs
HB wires	Rolls	45	4.00	180		4,680	56,160
Mild Steal Plates	Pcs	40	1.00	40	1,040		12,480
Packaging materials	Pcs	0.03	1,300	39	1,014		12,168
Sub-total			1,305	259	6,734		80,808
General Costs (Overheads)
Rent	200	2,400
Labour	425	5,100
Selling and Distribution	75	900
Cleaning and Toiletries	50	600
Utilities	165	1,980
Miscellaneous	54	650
Depreciation	272	3,263
Sub-total	1,241	14,893
Total Operating Costs	7,975	95,701

 

1)    Production costs assumed 312 days per year with daily capacity of producing 400dzns&900dzns of safety pins &hair pins respectively. Depreciation (fixed asset write off) assumes 4-years life of assets written off at 25% per year for all assets.

2)    Direct costs include materials, supplies and other costs that directly go into production of the product.

3)    Total monthly days assumed are 26-days.

4)    The valuation currency used is United States Dollars.

 

Project Product Costs and Price Structure

Item	Qty/ day	Qty/yr	Unit Cost	Prod Cost/yr	Unit Price	Total Revenue
Safety Pins	400	124,800	0.24	29,446	0.35	43,680
Hair Pins	900	280,800	0.24	66,255	0.35	98,280
Total	1,300	405,600	95,701	141,960

 

Profitability Analysis Table

Item	Per day	Per month	Per year
Revenue	455	11,830	141,960
Less: Production and Operating Costs	307	7,975	95,701
Profit	148	3,855	46,260