CHAPTER 4

4.0Production / plan.

4.1.1description of proposed design and then developments

The proposed NDOVU AGRO MACHINARY enterprise which will be a big wear house consisting of
services garage, spare parts store.,packing area for huge machine and both men and women
washrooms.

The business will consist of imported machinery and those small machine been made within the
premises

4.2production facilities and capacity

4.2.1description of machinery and equipment needed for operations / production

ITEM Source/supplier Cost Unit requirement Total cost ksh/=

Transport Isuzu suppliers 2000000 3 6, 000,000

track

Motorbikes Tvs suppliers 180000 3 540,000

Welding Inicco suppliers 20000 2 40,000

machines

Overlol Imani suppliers 500 10 5000

Recipt books Imani suppliers 80 2 160

Wallpaper Imani suppliers 250 1 250

4.2.2Repairs and maintenance of facilities for operations and production

Whenever the AGRO MACHINARY are needed to be given service and other been joined together since
they are in parts there will be an specialist who will deal with the machine

4.2.3 Features of proposed premises

For the start up of the business will operate under a rental premises whereby the deposit and the rent
will be paid once before entering the premises

The rent will be paid on the 10th day as per agreement

4.3PRODUCTION/OPERATIONS STRATEGY

4.3.1discription of the monthly raw materials and the spare parts for operations
MATERIALS SOURCE QUANTITY UNIT COST TOTAL COST

Tyre's D max 30 20000 60000

Oil Motorlol 100 500 50000

Bearing japan 50 500 25000

Tapet belt Chaina 60 200 12000

4.3.2MONTHLY LABOUR REQUIREMENTS

FUNCTIONS LABOUR COST

General manager 8000

Assistant manager 10000

Marketing and sales 7000

manager

Cashier 6000

Distributor 12000

Cleaner 5000

Service man 6000

Watchman 6000

TOTAL LABOUR 60000

COST

4.3.3monthly production /operation expense

EXPENSES Amount

Rent 25000

Insurance 5000

Waterbills 1000

Electric bill 3000

Advatisement

2000

4.4GOVERNMENT REGULATIONS

Regulation SOURCE LOCATION COST

compliance

Name search Office of attorney Nyandarua county 100

General

Business name Office of attorney Nyandarua county 2800

registration General

Business operation County ward officer Nyandarua county 850

license

Business pin County ward officer Nyandarua county 850

certification

Tax compliance Kra company Nyandarua county 1%of monthly sales