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SECTION II PRODUCTION PLAN 2.

1 Fixed Capital

S/NO 1 3 4 5 6 7 8

ITEM Dish & Decoder Encoder Transmission Cable Distribution Cable Computer Conduit Generator

QUANTITY 3 13 5 rollers 10 rollers 3 2000 1

COST/ITEM 280,000 200,000 200,000 100,000 700,000 2000 200,000

COST (Tsh) 840,000 2,600,000 1,000,000 1,000,000 2,100,000 4,000,000 200,000

9 10 11

Wooden tables Chairs Air Conditioners

3 9 3

150,000 50.000 300,000

450,000 450,000 900,000

12

50 way Hub Switch

20

1000,000

2,000,000

13 15 16

Push panel Printer Photocopy machine

20 1 1

20,000 300,000 700,000

400,000 300,000 700,000

17

Television

280,000

840,000

18 19

Carpets Tri cycle TOTAL

3 1

100,000 2,000,000

300,000 2,000,000 20,080,000

2.2 Life of Fixed Capital

S/NO

QUANTITY

ITEM

COST/ITE M

TOTAL COST(Tsh)

EPRECIATION RATE (X100%)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Dish & Decoder Encoder Transmission Cable Distribution Cable Computer Conduit Generator Wooden tables Chairs Air Conditioners 50 way Hub Switch Push panel Printer Photocopy machine Television Carpets Tri cycle

3 13 5 rollers 10 rollers 3 2000 1 3 9 3 20 20 1 1 3 3 1

280,000 200,000 200,000 100,000 700,000 2000 200,000 150,000 50 300,000 1,000,000 20,000 300,000 700,000 280,000 100,000 2,000,000 TOTAL

840,000 2,600,000 1,000,000 1,000,000 2,100,000 4,000,000 200,000 450,000 450,000 900,000 2,000,000 400,000 300,000 700,000 840,000 300,000 2,000,000

0.05 0.50 0.05 0.05 0.20 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.20 0.20 0.05 0.30 0.30

42,000 1,300,000 50,000 50,000 420,000 200,000 10,000 22,500 22,500 45,000 100,000 20,000 60,000 140,000 42,000 90,000 600,000 3214000

2.3 Maintenance and Repairs Few maintenance and repairs will be carried out in case of breakdowns to generators, wire abreactions, repainting, changing cables. 2.4 Sources of equipment and Materials All the equipments and materials are available in Dar-es-salaam city

DEPRECIATION COST (Tsh)

2.5 Planned Capacity UDSM CABLE TELEVISION has planned to begin servicing 822 rooms. 2.6 Terms and Conditions of Purchasing the Service The service will be installed to particular room when the residents have paid for the service. But the service will have been already installed up to the hall of residence, thus the cost of distribution cables will come into account. 2.7 Future capacity The service is expected to reach all rooms of residence in four years time. 2.8 Terms of and Conditions of Purchase of Equipment The equipment will be paid for at the time of installation or when it is ready for operation. 2.9 Business Location and Layout The main office will be located at main campus in hall IV in which control and distribution will be executed for main Campus customers. The business will have sub distribution centres at Mabibo and Uclas. 3.0 Labour A manager will be hired to oversee the overall operation of the service. An accountant will also be hired to handle business accounts. The company will also hire four technicians to ensure smooth operations of the services together with a secretary. 3.1 Cost of Labour The manager will be entitled to a monthly wage of Tshs 500,000, while Company accountant will receive Tshs 350,000 monthly. Technicians will be paid Tshs 300,000 monthly while the secretary will receive Tshs 200,000 monthly.

Indirect labour Manager Secretary Accountant

Per Month (Tshs) 500,000 200,000 350,000 ________ 1,050,000

Direct Labour 4 technicians @ 300,000 Total Labour Cost 1,200,000 __________ 2,250,000

3.2 Labour Availability Workers of this type of service are available locally. We do not expect any problems as such kind business already exist in the Dar es salaam city therefore technicians are readily available. 3.3 Labour Productivity Wages to Company workers will be paid on flat rate basis. 3.4 Business Overhead Expenses Business overhead expenses consist of; Per Month (Tshs) Indirect Labour Electricity Telephone Rent Depreciation Fuel Total Expenses 1,050,000 150,000 300,000 150,000 267,833 30,000 1,947,833

3.5 Service Cost Per Month (Tshs)

Multi Choice charges per month Direct Labour per month Total Overhead costs Total Service Cost Production cost per Unit in a Given Period; = Total Service Cost No. of Rooms 3,615,300 822

468,000 1,200,000 1,947,833 ________ 3,615,833

Unit Service cost = Tshs 4,399

SECTION III ORGANIZATION AND MANAGEMENT ANALYSIS 3.1 Form of Business

The business will be registered under the name Cable Television, C TV, owned by share holders. Business physical address will be UDSM hall IV common. 3.2 Organizational Structure The business will be headed by manager hired by the Board of Directors who will oversee the finance and technical operations of the organization. The manager will be assisted by the accountant who will be in charge of the books of the Company. Company Technicians will be directly dealing with service delivery including trouble shooting. Among the technicians, will exist a technical supervisor who will report to the manager while the other technicians report to him. The secretary will handle office paper work and customer services. (See figure 3.2)

Figure 3.2 Organization Chart. BOARD OF DIRECTORS

MANAGER

TECHNICAL SUPERVISOR

ACCOUNTANT

SECRETARY

TECHNICIANS

3.3 Business Experience and Qualifications of the Manager The hired manager has a technical experience, Advanced Diploma holder in electronics and Telecommunication, with enough experience in management and he is innovative. 3.4 Pre Operating Activities The board of directors has the following activities to be undertaken before business operation starts; 1. Preparing the business plan 2. Registering the Business 3. Hiring manager
4. 5. 6. 7.

4 weeks 2 weeks 1 week 3 weeks 2 week 8 weeks 2 days 3 week

Hiring of technicians and Accountant Contacting equipment supplies Installing equipment Service Trial

8. Promotion

The Service will start its operation immediately after the completion of testing. 3.5 Pre Operating Expenses Training workers will be necessary for familiarization of modern equipment operations. The trainers will be the owners of the Service since they are well experienced.

Pre-operating Expenses Registration cost Survey cost Training cost Promotion cost Transportation cost Communication cost Electricity Total Pre-Operating Expenses 3.6 Office equipment

Tshs 500,000 500,000 150,000 800,000 500,000 100,000 50,000 __________ 2,600,000

The company office equipment will be three tables, nine chairs, photocopier, three televisions, three computers, three air conditioners and one printer. All these will cost 6,040,000 Yearly depreciation of all these equipment will be 842,000

3.7 Administrative Expenses Monthly administrative expenses will be made up of; Depreciation of office equipment Supplies and Communication Electricity Salaries Total 842,000 100,000 75,000 1,050,000 _________ 2,067,000

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