(translation - part (2)) ceramics project feasibility study
TRANSCRIPT
Project Investment Costs:
Project costs are limited to costs of buildings, equipment, providing
electricity, water, and natural gas. The following is a detailed list of these
costs:
1- Constructing a fence of 3 m height and one-meter-deep substructure
on an area of 200 m width x 500 m length. Estimated cost is 0003333
EGP.
2- Building a truss-structured warehouse of a 30 m width x 400 m length
on an area of 12000 m2
at a cost of 5 million EGP. Heights are
different. A height of 30 m is for atomization lines, a height of 8 m is
in presses stage and a height of 6 m is for the rest of production line.
Estimated cost is 5 million EGP.
3- Warehouse capacity: 6 lines, 4 furnaces, and 4 classification lines. The
project is going to start with 3 lines, 2 furnaces, 2 classification lines.
Estimated cost is 00333333 EGP.
4- Building 50-cm-deep stores from ordinary and steel ingots on a
15000-m2
open area outside the warehouse. Estimated cost is 0033333
EGP.
5- Dedicating part of the warehouse to be a quality laboratory for testing
modulus of rupture, bend strength and resistance to absorption, acid,
and abrasion. Estimated cost is 033333 EGP.
The Following is a Simple Presentation of
a Feasibility Study on the Project
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6- Dedicating a part to be a laboratory for preparing glazes and colors.
The laboratory consists of color mills, testing furnaces, dryers, and
labs. Estimated cost is 033333 EGP.
7- Dedicating a laboratory for designs. The lab consists of computers,
various manual silk screens and different pieces of equipment.
Estimated cost is 033333 EGP.
8- Dedicating a part to be a mechanical workshop consisting of equipment
of central workshops, welding and lathing. Estimated cost is 033333
EGP.
9- Dedicating a part to be a workshop of wood pallets on which ceramic
tiles are put in order to be stored. The workshop is a carpentry one for
manufacturing wood pallets. Estimated cost is 003333 EGP.
10- Building a power station with generators and electric transformers.
The station consists of a basement of 4 m height. The power station and
electric transformers occupy one floor of 5 m height.
11- There is equipment inside the warehouse for transporting ceramic
tiles. The equipment includes 5 Clark pieces (1 million EGP) and 2
loaders (1 million EGP).
12- A pickup truck ( 033333 EGP).
There are other transportation means for workers and supervisors:
13- 15 mini-buses (4033333 EGP).
14- 10 private cars for managers and engineers ( 033333 EGP)
15- 10 trucks for transporting, marketing and selling ceramic tiles in
different governorates (0333333 EGP).
16- Establishing a department for purchases, forming a trained team
including members specialized only in purchasing materials… etc.
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17- Forming a highly-trained managerial team for marketing and sales.
The team members are specialized in marketing the factory products,
concluding contracts of trade agencies required for marketing products
and arranging marketing issues before the start of production process.
It is worth noting that there is an increasing demand for ceramic
products especially in Upper Egypt where new cities are being built
such as New Beni-Suef, New Fayoum, New Menia, New Sohag. There
is also wide expansion in Qena, Hurghada, Nag' Hamadi, Farshout,
Malawi, Maghagha and other cities that are hungry for ceramic
products.
18- Forming an exporting managerial team that is responsible for
concluding outside-Egypt marketing contracts. Export activity should
cover at least 20% of products.
19- Dedicating a place for security & guarding companies.
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Project costs are limited to costs of buildings, equipment, providing
facilities including electricity and water as follows:
A. Buildings Costs:
Costs List
0333333 EGP Truss-structured warehouse (30 m width x 400 m
length)
1
0003333 EGP A fence (200 m width x 500 m length) 0
0033333 EGP A 4-floor administrative building (600 m
2) 0
0033333 EGP Stores on a 15000-m
2 open area 4
033333 EGP Furniture, equipment and computers 0
04003333 EGP Total Costs
1- Project Investment Costs
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B. Costs of providing facilities including electricity, water, natural gas,
sewerage facilities including an industrial wastewater system.
Costs List
0333333 EGP Step-down power station 0
0333333 EGP 2 standby generators (2 x 3 million EGP) 0
0333333 EGP Gas reduction station 0
0333333 EGP Water line dedicated to the factory 4
1033333 EGP
Sewerage facilities including an industrial wastewater
system.
0
0333333 EGP Panel boards and cables 0
0333333 EGP Lighting, lamps, …etc. 0
00033333 EGP Total Costs
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C. Production Lines:
Costs List
00333333 EGP 3 production lines, 2 classification lines plus
2 furnaces
1
033333 EGP Equipped quality lab. inside the warehouse 0
033333 EGP Colors & glazes preparation lab. 0
033333 EGP Computer & manual silk screen design lab. 4
0333333 EGP Loading & unloading machines, loading trucks
and hoists (robot)
0
033333 EGP Equipped mechanical workshop 0
003333 EGP Equipped wood pallets workshop 0
0333333 EGP Transportation equipment: ( 5 Clark pieces plus
2 loaders)
0
033333 EGP A pickup truck 0
4033333 EGP 15 mini-buses for workers 03
4333333 EGP Warning devices, fire extinguishers, security
cameras ( industrial security)
00
0333333 EGP 10 trucks for transporting ceramic tiles to
governorates
00
0333333 EGP 10 private cars for managers 00
000003333 EGP Total costs of production lines
EGP040033333 Total investment costs of project
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A. Production quantity:
There are 3 production lines.
Every line produces 0333 m of ceramic tiles per day.
29 workdays per month.
Ceramic tiles production quantity:
(3 lines x 0333 m per day x 29 workdays = 000333 m per
month)
Ceramic tiles production quantity per year:
(000333 m per month x 12 months = 0000333 m per year)
Equipment & machines maintenance: 15 days per year
B. Production costs:
(7 EGP per meter) primary materials including: sand, feldspar,
red clay, kaolin and talc in addition to some other materials
used in some processes. Examples of these materials are
sodium hydroxide, sodium silicate, calcium carbonate, colored
materials and lubricants.
(5 EGP per meter) glaze materials including: feldspar, sodium
hydroxide, bonding materials, dolomite and water. Some
chemicals are used in labs for controlling quality and making
analyses. Some other materials such as sodium
2- Monthly Production Cycle Costs
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tripolyphosphate, Rutan oil, bentonite are used to help with
some processes. Natural gas and mazout are used as fuels for
furnaces.
Total material costs per meter = 12 EGP
Machines & equipment maintenance costs per month =
003333 EGP
Benzene & diesel fuel & natural gas costs per month =
00333 EGP
Electricity cost per month = 0333333 EGP
Gas cost per month = 0333333 EGP
Water cost per month = 003333 EGP
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Salaries & wages per month:
Total (EGP) Sums Number List
00333 0333 0 Mangers 1
0333 0333 0 Industrial security manger 0
03333 0033 03 Engineers 0
003333 0033 033 Technical operators 4
00333 0033 03 Administrative employees 0
03333 0333 43 Supervisors 0
03333 0333 00 Accountants 0
03333 0033 03 A security guard 0
04333 0033 03
Mini-bus & tile truck drivers and
managers
0
03333 0033 03 Store-keepers 03
00333 0033 00 Industrial security guards 00
00033 0033 00 Clark truck & loader drivers 00
003333 - - Staff incentives & awards 00
433333 033 033 labors 04
Total salaries & wages per month = 0430033 EGP
Total salaries & wages per year = 0430033 x 12 months = 00000333 EGP
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Costs per meter:
Salaries & wages per meter:
0430033 EGP ÷ 000333 m per day = 0030 EGP
Monthly electricity cost per meter:
0333333 EGP ÷ 000333 m per day = 0040 EGP
Monthly gas cost per meter:
0333333 EGP ÷ 000333 m per day = 0000 EGP
Monthly water cost per meter:
003333 EGP ÷ 000333 m per day = 3000 EGP
Monthly gas & diesel fuel & benzene costs per meter:
00333 EGP ÷ 000333 m per day = 0.13 EGP
Monthly equipment & machine maintenance costs per meter:
003333 EGP ÷ 000333 m per day = 0.21 EGP
Monthly cartoon cost per meter:
000333 EGP ÷ 000333 m per day = 1 EGP
Monthly manual silk screens costs per meter:
000333 EGP ÷ 000333 m per day = 1 EGP
Monthly pallets cost per meter:
000333 EGP ÷ 000333 m per day= 1 EGP
Monthly incidental expenses per meter:
03333 EGP ÷ 000333 m per day = 0.07 EGP
Monthly advertising expenses per meter:
0033333 EGP ÷ 000333 m per day = 3.59 EGP
Total cost per meter:
0.07 + 1 + 1+ 1 + 0.21 + 0.13 + 0.35 + 2.87+ 1.43 + 2.02 + 12 + 3.59
= 25.67 EGP
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Monthly production cycle cost:
3 lines x 8000 m x 29 workdays x 25.67 EGP (total cost per meter) =
00000003 EGP
Annual production cycle cost:
Monthly production cycle cost x 12 months
00000003 EGP x 12 months = 004000043 EGP
Outflow (monthly sales):
3 lines sales x 8000 m x 29 workdays x 12 months = 0000333 EGP
divided as follows:
1st class sales: 70% x 40 EGP per meter = 000000333 EGP
2nd
class sales: 20 % x 30 EGP per meter x 0000333 =
03000333 EGP
3rd
class sales: 10% x 25 EGP per meter x 0000333 =
03003333 EGP
Total sales per year:
000000333 EGP + 03000333 EGP + 03003333 EGP
= 034040333 EGP per year
Annual outflow (sales):
Annual total sales: 034040333 EGP
Annual net outflow: 034040333 – 004000043 = 03400003 EGP
040033333 Project investment costs
004000043 Annual production cycle costs
000400043
3- Project Total Costs
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List Creditor List Debit
Earnings
per year 034040333
Annual cash costs
004000043
Allowance of depreciation due to
replacement and annual equipping
04000333
Investment costs per year
04003333
Net profit per year
40000003
034040333 034040333
Feasibility Study Summary
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Working Plan for Ten Consecutive Years
This plan depends on God's blessing then on hard work, commitment
to deadlines and choosing efficient employees,
The project is going to start with 3 production lines that are going to
be operated for 5 years.
In the fifth year, after marketing expansion, growing experience in
market demands and variousness of tastes, 3 new production lines,
2 new classification lines and 2 more furnaces are going to be added.
Doubling lines number is going to double production quantity and
consequently profits are going to double.
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is going to be as follows: Working plan
Surplus
Total
installment
& interest
Loan
interest
Annual
loan
installment
Earnings
per year
Year
00000003 00033333 4033333 00333333 40000003 First
00000003 00303333 4303333 00333333 40000003 Second
00000003 00033333 0033333 00333333 40000003 Third
00300003 00003333 0003333 00333333 40000003 Fourth
00000003 00033333 0033333 00333333 40000003 Fifth
000000033 Total of 5 years
00333333 After adding 3 production lines, 2 furnaces and
2 classification lines (+ / -)
04000033 Profit surplus of the first 5 years
00003333 00003333 0003333 00333333 00033333 Sixth
00033333 00033333 0033333 00333333 00033333 Seventh
00003333 00003333 0003333 00333333 00033333 Eighth
00033333 00033333 033333 00333333 00033333 Ninth
03303333 00403333 403333 00333333 00033333 Tenth
000000033 Total surplus during the ten years
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Introductory Budget of Solitaire Ceramics Factory
Sums Assets Sums Liabilities
Fixed Assets
000033333 Capital
Cash reserve
03333333 Lands
04003333 Buildings
033333 Furniture,
equipment, and
computers
00033333 Power stations,
cables, gas
and sewerage
facilities
04303333 Equipped
production lines
00033333 Cars, equipment
& means of
transportation
000033333 000033333