MANUFACTURING METALIC FASTENERS
Introduction
Belt fasteners are used widely in industries manufacturing suit cases, travel bags, apparel belts, shoes etc. Fasteners could be manufactured in different sizes and designs depending on the demand. The unit would make the buckles for the belts as well as the shoes in different varieties. The variety may include double wire.
Market Analysis
The market for fasteners is readily available as there are many small Scale establishments engaged in the production of items that would lock buckle, oval shape shoe buckle, square pronged buckle, rectangular buckle among others. There are however no standard set up for these items since the designs, size, and material are constantly changing due to the market demand. Use is more pronounced.
Project Product Costs and Price
Structure in US$
Production Capacity, Technology and Process
The manufacturing process involves the use of two types of machines which include a power press as well as hand press on one hand and a hook making machine on the other. The mild steel plate of gauge 19/20 is cut into strips of appropriate size using a bench shearing machine. The sheared plate is then punched out using a power press, and finally, fly presses are used to mould and smoothen the article. The produced article goes through the electroplating plant to give it the final desired colouring or look which may be chrome, golden, silver etc. The established setup would produce about 512 pcs of buckles, and 3200 pcs of fasteners of different sizes a day.
Investment Scale, Capital Requirements and Equipment
The investment scale depends on the project set objectives.
Capital Investment Requirements in US$
|
Item |
Units |
Qty |
Unit |
Amount |
|
Treadle Shearing Machine |
No |
1 |
1,500 |
1,500 |
|
Special
purpose hook making |
No |
1 |
500 |
500 |
|
15 tone power press |
No |
1 |
3,000 |
3,000 |
|
Fly press No.1 |
No |
3 |
1,000 |
3,000 |
|
Electroplating Plant |
No |
1 |
1,000 |
1,000 |
|
Total |
9,000 |
Production
and Operation Costs
Direct Materials, Supplies and Costs in US$
|
Cost Item |
Units |
Unit |
Qty/ |
Prod |
Prod |
Prod |
|
Direct Costs |
||||||
|
Mild
Steel Plates |
Pcs |
63 |
4 |
252 |
6,552 |
78,624 |
|
Steel Wires |
Roll |
40 |
0.50 |
20 |
520 |
6,240 |
|
Other materials |
- |
- |
167 |
2,000 |
||
|
Sub-total |
5 |
272 |
7,239 |
86,864 |
||
|
General Costs (Overheads) |
||||||
|
Labour |
400 |
4,800 |
||||
|
Rent |
500 |
6,000 |
||||
|
Utilities |
600 |
7,200 |
||||
|
Administrative expenses |
150 |
1,800 |
||||
|
Selling and distribution |
260 |
3,120 |
||||
|
Miscellaneous expenses |
125 |
1,500 |
||||
|
Depreciation |
188 |
2,250 |
||||
|
Sub-total |
2,223 |
26,670 |
||||
|
Total Operating Costs |
9,461 |
113,534 |
1) Production costs assumed 312 days per year with
daily capacity of producing 2,500 belt fasteners.
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. Currently these items
are imported. Their absence may contribute to failure to manufacture belts
locally. Thus, this is a venture likely to stimulate other items to be
produced. They could be exported to our neighbors especially Kenya where their
|
Item |
Qty/ |
Qty/yr |
unit |
Prod |
Unit |
T/Rev |
|
belt |
2,500 |
780,000 |
0.146 |
113,534 |
0.3 |
234,000 |
Profitability Analysis table
|
Item |
Per day |
Per month |
Per year |
|
Revenue |
750 |
19,500 |
234,000 |
|
Less: Production& Operating Costs |
364 |
9,461 |
113,534 |
|
Profit |
386 |
10,039 |
120,466 |