በድሬዳዋ ቴክኒክና ሙያ ት/ት እና ስልጠና ኤጀንሲ አስተባባሪነት

በቴክኒክና ሙያ ት/ት እና ስልጠና ኮሌጅ እና ከባሇድረሻ አካላት የተዘጋጀ እሴት ሰንሰሇት

Sector:- Energy
Sub sector:- Solar Energy/Manufacturing/
Product:- Adjustable solar cooker

Prepared by:-

1. Merid Melesse (METEC)

2. Wondimu Sahile(EEU)

3. Elias Seid (MZMTVET College)

4. Hussein Bune (MZMTVET College)

5. Shambel Moges (Ethi-Ita TVET

College)

6. Etefa Ali (MZMTVET College)

7. Alemtsehay Getachew TVET Agency)

8. Tameru Hailu (MZMTVET College)

የቀረበበት ቀን- 25/03/08 ዓ.ም

1
 Content pages

1. Unit of competencies covered ………………………………….…3

2. Rationale: state where it can be useful and
haw is the value of producing this ……………………………....3
3. Exploration of value chain …………………………………….…….4
4. Project description ………………………………….…………….….. 5
5. Project objective …………………………………………………………..5
6. Project photo ……………………………………………….………….....6
7. Project bill of material ………………………………………………..8
8. Tools and equipment needed ………….……………………………8
9. Cost of project ………………………………………………………........9
10. Critical constraint ……………………………………………………….10
11. Conclusion ………………………………………………..………………….10
12. Executive summary …………………………….…………………………11
13. Brief description of business idea ……………………………… ....12
14. Customers/target group ……………………………………………….12
15. Organizational structure ……………………………………………… 12
16. Owners ……………………………………………………………………...….13
17. Business idea and market ………………………………………….....13
18. Description of the market ………………………………………..…..13
19. Marketing plan product ………………………………………………...14
20. Detail description of the product range or service .……......14
21. Specification of the product …………………………………………14
22. After sales service ……………………………………………………........14
23. Market plan price ……………………………………………………………14
24. Marketing plan place …………………………………………………......14
25. marketing plan promotion ……………………………………...……14
26. Legal form ………………………………………………………… ………….15
27. Fixed asset needed and their cost ………………………………….16
28. List of raw material ………………………………………………….......17
29. Staff cost ………………………………………..………………………….……17
30. Startup capital …………………………………………………………….....18
31. Source of startup capital………………………………………………....18
32. Debt service………………………………………………………………..……19
33. Work shop lay out ……………………………………………………………20
34. Monthly sales plan ……………………………………………….……….…21
35. Monthly operational cost plan ……………………………………......21
36. Monthly cash flow plan …………………………………………….…..…22
37. Profit margin …………………………………………………….……………..23
38. Opening balance sheet ………………………………………….…………24
39. Breakeven point……………………………………….…………….………. 25

2
I. Project Proposal Adjustable solar cooker

II. Occupational Title: BMW

III. Units of Competencies Covered

1. Interpret Working Drawings and Sketches

2. Perform Bench work
3. Cut and Join Sheet Metal
4. Use Workshop Machines for Basic Operations
5. Perform Hand Forging
6. Perform Routine Metal Arc Welding
7. Assist Testing of Mechanical Engineering Materials
8. Apply Quality Standards
9. Work with Others
10. Receive and Respond to Workplace Communication
11. Demonstrate Work Values
12. Develop Understanding of Entrepreneurship

IV. Rationale: State where it can be useful and how is the value of producing this
A project is selected to import substitution and minimize cost.

This product also will serve our customers specially those live in Dire Dawa and around b/c there
is enough solar energy, also it serve in medium and lower classes of society b/c it minimize the
cost of consumption of energy.

3
የእሴት ሰንሰሇት የሚሰራባቸው ዘርፎች

ዘርፍ ንዑስ ዘርፍ የእሴት ሰንሰሇት የሚሰራላቸው የተሰጠ

ነጥብ

1. ኢነርጂ የፀሀይ ሀይል ሶላር ፍሪጅ 75

እና
መአድን ሶላር ሞባይል ቻርጀር 60
ሶላር ትራፊክ ምብራት 40

ሶላር ምግብ ማብሰያ 85

ኢሌክትሪክ ሀይል

የንፋስ ሀይል

የተመረጠበት ዋና ምክንያቶች
• ድሬደዋ በጣም ሞቃታማ ስሇሆነች የፀሀይ ብርሀንን በመጠቀም ምግብ ማብሰል ስሇሚያስችሇን፡፡

• የፀሀይ ብርሀንን በመጠቀም አላስፈላጊ የሆነ የኤሌክትሪክ መቆራረጥ ችግርንና ወጪን በማስዎገድ
በአማራጭ ምንጭ ሇመጠቀም ፡፡

• ኤሌክትሪክ ያልደረሰባቸዉን የገጠሩን ያገራችን ክፍል ህብረተሰብ ፤ ሇገጠር ጤና ተቆማት የሀይል

ምንጩን ሇማዳረስ ስሇሚያስችሇን፡፡

• በደን ጭፍጨፋ ምክንያት ሊከሰት ከሚችሇዉ የአየር ብክሇት ነፃ ሇማድረግ፡፡

• በዘርፉ የስራ እድል ሇመፍጠር

4
የእሴት ሰንሰሇት ተመጋጋቢነት ከትኩረት ዘርፎች አኳያ
1) ኢንዳስትሪ

• Sector:- Energy

• Sub sector:- Solar Energy/Manufacturing/

• Product:- Adjustable solar cooker

5
Project Design

6
Objective
• This value chain analysis is carried out to increase
production & productivity of metal & metal work by
reducing cost, time, wastage of materials , saving
energy and electric bill.

Specific objective
• To identify the value chain /as is/ in metal production

• Compare the value chain /as is/ with bench marks

• To identify the gap and constraints b/n existing situations and the bench
mark

• Identify the gap and recommended appropriate technologies and methods

that will improve enterprise experience and increase productivity

• To improve managing and monitoring abilities of intra pruners

• To produce demand driven import substitute and export oriented product

Benefits of the value chain

• Enable micro and small scale enterprises to produce, low cost,
quality, demand driven, import substitute product
• Increases customers satisfaction and confidence of enterprise
Improve co-operation and coordination activates with stack holders and
organization

7
V. exploration of Value chain

8
9
10
11
Project proposal document/example

Project proposal document

Rationale: State where it can be useful and how is the value of
producing this
• This project creates job opportunity to those MSE who
produce the adjustable solar cooker itself and those who
cook food for rural and urban area by using sun radiation
as a source of alternative energy.

12
Project proposal document
Project Description
• The project is made up of stainless steel sheet 0.8 mm
thick and different metal structure. It has four wheels and
driven manually, the reflection part is made of aluminum
foil shield and mounted on parabolic sheet meta.
• a parabolic adjustable solar cooker directs the sun-beam in
to one focal point. At this point all the energy comes
together and heat is generated the heat point can get a
temperature up to 200℃ and the manual adjustable
handle can control the intensity of the focal point and the
temperature.
• The total cost of this technology 2194.20.00ETB. which is
more economical, environmentally and customer friendly.
Project proposal document
Project Objectives:
• To introduce project based training by integrating four
packages
• To fill the gap of the trainers through project based
training
• To integrate material used for each competence by making
the project material
13
 • To enhance MSE through IES
VIII. Project Photo:

14
Project Operation/ Steps/Procedures

• Prepare working drawing

• Select raw materials

• Transferring the dimension to the work piece

• Cut and develop the pattern

• Join the pattern accordingly

• Assemble the parts according to the drawing

• Apply coating and polishing

15
 Project Design

IX. Project Bill of Materials:

S ITEM DIMENSION QUANTITY UNIT COST TOTAL COST

N

Galvanized sheet metal 2000x1000mmx0.8mm 2 200 400

Electrode Roll 2.5 diameter 1pck 250 100

RHS 6000x30x30x1.5mm 2 200 400

RHS 6000x25x25x1.5mm 1 150 150

Round pipe 25mm2 1/2 150 75

16
 Anti rust paint Gallon 1 100 100

Metal paint Gallon 1 100 100

Sand Paper Standard/reg 2 10 20

Aluminum foil 4000mmx1000mmx0.1m 1 300 300

m

Anti rust pain Gallon 1 100 100

Wheels/tire Ø400mm 4 50 20

Rivet Ø10mm box ¼ 100 100

TOTAL COST 2015birr

X. Tools and Equipment Needed:

No. Item Quantity Amount

1 Scriber 2 10

2 Try Square 2 80

3 Bench Shear 1 1500

4 Hack saw 2 100

5 Different types of file 3 100

6 Center punch 2 20

7 Divider 2 100

8 Measuring tools 2 40

9 Wire brush 2 30

10 Paint brush 2 20

11 Hand Grinding machine 1 1500

[12 Bench drilling machine 1 2500

13 Hand shearing machine 1 1500

17
14 SMAW machine 1 4000

15 Rivet Gun 2 200

16 Mallet hammer 2 60

17 Ball pin hammer 2 80

18 Chipping hammer 1 60

19 Circular cutting machine 1 2500

20 Bench with vise 2 2000

Total 16,400

XI. COST OF A PROJECT

PBT – Assesement

• Project document – value chain , project proposal and deign, marketability feasibility etc.

• Production process – critical competencies

18
19
XII. Critical constraint

Critically there are difficult to importing items from foreign countries. The common constraints
in this regard are lack of knowledge, Skill, Technology and item costs.

XIII. Conclusions

Producing high quality product especially naturally gifted (resourcefully or environmentally

ferendelly) so, substitute this item to minimize relative problems.

20
BUSSINESS PLAN

Executive Summary

Name of business BEGARA SOLAR COOKER

Legal form PARTENERSHIP

Contact address SEYIDO - DIRE DAWA

Tel. 0913883319 Email begara015@[Link].

Fax.------

Type of business:- Manufacturer

Brief description of the business idea

Products or services:-BEGARA SOLAR COOKER produces and sales a product called solar
cocker which is used to cook deferent kinds of food, to boil milk, coffee, tea and water to
respective rular and urban group or customers.

Customers / target group

Our target market will be peoples live in rural and urban areas to prepare food, different
applications and also is used for hotels those give different service for their customers.

21
 Organizational structure

General
manger

Production
Finance head HRM
head

Manufacturing Quality control

GMFA

Owner(s)

(Name, Address, Qualification, Function in the business, relevant experience)

BEGARA SOLAR COOKER, SEYIDO DIRE DAWA, MNUFACTURING,

No. Name Address Qualification

Function in relevant
the business experience
1 ELIAS Dire Dawa ELE/ELEC General 4
Manager
2 WONDIMU SAHILE Dire Dawa MANAGEMENT HRM 3
3 MERID MELESSE Dire Dawa ELECTRCIANE Quality 3
control
4 SHAMBEL MOGES Dire Dawa ELE/ELEC Production 2
head
5 ETEFA ALI Dire Dawa ACCOUNTING PURCHASER 3
6 ALEMTSEHAY Dire Dawa MANAGEMENT Finance 3
GETACHEW Head
7 TAMIRU HAILU Dire Dawa ELE/ELEC Work shop 3
supervisor1
8 HUSSEIN BUNE Dire Dawa ELE/ELEC Work shop 3
supervisor 2

22
 Business Idea and Market

Description of the business idea

Identifying needs (market gap) of the customers who cook deferent kinds of food.

Description of the market

Geographical area, type of customers, size of total market,

Description of competitors, market share for the new business, etc

As we have conducted a market and resource survey we have identified a high demand for our
product in Dire Dawa town and rural area as well as the neighboring region.

We planned to produce and sale a product called Solar Cooker, that customers respectively use
to prepare food and other relevant services.

As we have explained earlier our customers will be peoples live in rural and urban areas to
prepare food, different applications and also are used for to cook deferent kinds of food, to boil
milk, coffee, tea and water those give different service for their customers.

Specification of the product

• The project is made up of stainless steel sheet 0.8 mm thick and different
metal structure. It has four wheels and driven manually, the reflection part is
made of aluminum foil shield and mounted on parabolic sheet meta.

• a parabolic adjustable solar cooker directs the sun-beam in to one focal

point. At this point all the energy comes together and heat is generated the
heat point can get a temperature up to 200℃ and the manual adjustable
handle can control the intensity of the focal point and the temperature.

• The total cost of this technology 2194.20.00ETB. which is more

economical, environmentally and customer friendly.

23
 After sales service
We will give the following after sales services:

1. Warranty for six months.

2. Maintenance service for six months.
3. Coaching and consulting one year on customer request.

Marketing Plan Price

How much are customers willing to pay?

 Highest
 Average √
 Lowest
How much is the competitors’ price?

We have no competitors yet.

How much is your price?

 Highest
 Average √
 Lowest
What are the reasons for setting your price?

We set our price based on the purchasing power of customers.

Is there discount on bulk purchase? If yes _____% No√

What is special about the product/ the unique characteristics of the product?

Our product serves the customers in low cost b/c of the alternative source of energy that naturally
exists and minimizes air pollutions.

24
 Marketing Place Plan

Location of the business (description of the planned location of the

business)

The planned location of the business will be Dire Dawa town , rural areas and
surrounding regions.

Reason for choosing the location of the business

The demand for our product is higher in Dire Dawa area, we can get sufficient
working place and there are no similar project in the area.

How to distribute the product to customers?

Directly to the customers √

Through retailers or wholesalers

Reason for choosing this way of distribution

We decided to deliver the product directly to the customers to avoid unnecessary

price increment which will affect the purchasing power of our customers.

Marketing Plan Promotion

We promote our product through printed materials like brochures, posters and also
we use personal selling. We will not use electronic media because of its cost.

25
 1. PRODUCTION PLAN

Production process

List of production steps

1. Prepare working drawing

2. Select raw materials
3. Transferring the dimension to the work piece
4. Cut and develop the pattern
5. Join the pattern accordingly
6. Assemble the parts according to the drawing
7. Apply coating and polishing

List of fixed assets needed and their cost

No. Item Quantity Amount

1 Scriber 1 200

2 Try Square 2 40

3 Shear 1 200

4 Hack saw 1 50

5 Different types of file 3 1500

6 Center punch 1 20

7 Divider 1 100

8 Measuring tools 2 20

9 Wire brush 1 15

10 Paint brush 1 10

11 Hand Grinding machine 1 2500

12 Hand drilling machine 1 1500

26
13 Hand shearing machine 1 2000

14 GMAW machine 1 1335

15 Rivet Gun 2 2000

16 Spot welding machine 1 3500

Total 15 000birr

What is the useful life time of each fixed asset?

Investment item Lifespan in years Depreciation (in %)

Simple machines 8-10 12.5-10
Special machines 3-5 33.3-20
Hand tools 3 33.3

Brief description of the project production capacity per month:

1st month 20

2nd month 30

3rd month 40

27
Factory/plant location and layout

Woking area
Finishing

Bench1 ea Tool store

ar
g
in
ok
W

working Woking area

Bench2

Cutting
working area
Bench

List of raw materials needed

SN ITEM DIMENSION QUANTITY UNIT TOTAL

COST COST
1 Sheet metal 2000x1000mmx0.8mm 1 200 200
2 Electrode Roll 2.5 diameter 1/2pck 250 100
3 RHS 6000x30x30x1.5mm 2 200 400
4 RHS 6000x25x25x1.5mm 1 150 150
5 Round pipe 25mm2 1/2 150 75
6 Anti rust Gallon 1 100 100
paint

28
7 Metal paint Gallon 1 100 100
8 Sand Paper Standard/reg 2 10 20
9 Aluminum 4000mmx1000mmx0.1mm 1 300 300
foil
10 Anti rust Gallon 1 100 100
pain
11 Wheels/tire Ø400mm 4 50 20
12 Rivet Ø10mm box ¼ 100 25
TOTAL COST 1590birr

COST OF THE PROJECT

Labor Cost =1590 bir x 0.20 : = 318
Machine Depression :1590 x 0.10=159
Miscellaneous :1590 x 0.10= 159
Material cost =1590
Profit = 1908 X 15%=286.20
Selling price= Labor Cost + Machine Depression + Miscellaneous + Material cost
+ Profit =2194.20
Total selling cost:2194.20 ETB

29
Staff cost
No Position Qualification Salary per Remark
month
1 Project coordinator TVET graduate 1000
2 purchaser TVET graduate 1000
3 Auditor TVET graduate 800 contract
4 GMFA TVET graduate 1000
5 GMFA TVET graduate 800
6 janitor Reading& writing 700 birr
7 Guard Reading& writing 500 birr
Total 5800

Production costs of each item to be produced

Raw materials per month 20 x1590=31800birr

Direct labor per month 20x318=6360birr

Project overhead expenses per month 5800birr

ORGANIZATION AND MANAGEMENT PLAN

Forms of business

partnership

30
 Organizational structure

project
coordinato

GMFA purchaser Auditor

janitor Guard

Business experience & qualification of Entrepreneur.

Administrative expenses.

Administrative expenses. Amount

1. Allowance ______

2. Supplies _______

3. Communication _______

31
 2. FINANCIAL PLAN

Capital requirement

Capital requirement/project cost? Amount

Fixed Assets
- Land(house rent) 9076
- Building
- Equipments 15 000birr
- Others 3 000 birr
Total Fixed assets 27076birr
Pre-operating expense 1000birr
Working capital
-Operational costs of one months ---
- Raw materials costs 31800birr
- Direct labor costs 6360birr

-Staff cost of one month 5800 birr

Total working capital 43960
Total capital requirement 71960 birr

Profit & loss statement

Quarterly project profit& loss statement

Gross sales 197478

Less: Returns -----------
Net Sales 197478
Less: Cost of goods sold 4770
Gross profit 192708
Less: Administrative & Selling Expenses 17400
Operating profit 175308
Less: Interest Expense -----------
Net profit Before Tax 175308
Less: Estimated Income Tax -----------
Net profit After Tax 175308

32
Cash flow

Projected monthly cash flow statement

Particulars Pre- Month

operating 1 2 3 4 5 6 7 8 9 1 1 1
Period 0 1 2
Cash at the beginning of 2000 45884 45884
the month
Cash inflow
Equity 71960 birr
Borrowings - - - -
Cash sales 43884 65826 87768
Collection of A/R
Other income
Total cash inflow 71960 birr 45884 111710 13365
2
Cash outflow
operating expense 1000 1500 2000
Purchase of fixed 18 000
assets
Taxes payable
Total Cash outflow 18 000 1000 1500 2000
Cash at the end of the 53960 44884 110210 13165
month 2

Balance sheet

Projected balance sheet

Assets Amount Liabilities Amount

ASSETS LIABILITIES
Current Assets Current Liabilities
Cash at hand and bank 44884 Current Liabilities
Accounts receivable Accounts payable
RM inventory Taxes payable
WIP inventory Others payable
FG inventory Total Current Liabilities
Total Current Assets 44884 Long-Term Liabilities

33
Fixed Assets Loans
Land(house rent) 9076 Others
Building Owners Equity 71960
birr
Equipments 15 000 Capital
Others 3 000
Total Fixed Assets 18 000
Others
Total Assets 71960 Total liabilities & capital 71960
birr birr

Break-even point

Breakeven Quantity = Total fixed cost

(price per unit - variable cost per unit)

Breakeven point = Total fixed cost x price per unit

(price per unit - variable cost per unit)
(breakeven sales
level in dollar terms)

Return on investment

Rate of return = Amount received - Amount invested x 100

Amount invested

Price per unit= Cost per unit + profit (25% of unit cost)
Unit cost= Total fixed cost +Total variable cost
Quantity

34