Feasibility Study On Elevetor Ass

PROJECT PROPOSAL
FOR
(Feasibility Study for Establishment of
Computer Assembly and Accessory Plant)
PROJECT TO BE IMPLEMENTED IN OROMIA
REGIONAL STATE, OROMIA SPECIAL ZONE
SURROUNDING FINFINE, SEBETA TOWN
PROMOTER:
Table of Contents
Overview of the Project...............................................................................................................................
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1. Executive Summary.............................................................................................................................
2. Policy Profile, Objective, Mission, Vision and Background of the Project..........................................
2.1 Country Profile..................................................................................................................................
2.2 Economic Policy Profile....................................................................................................................
2.3 Background Information of the Company.......................................................................................
2.4 Brief of this Project..........................................................................................................................
2.5 Company’s Objectives, Mission, Vision, Motto..............................................................................
3. The Project Location..........................................................................................................................
4. The Project........................................................................................................................................
4.1. Product Description (Computer assembly).....................................................................................
5. Major Facts for the Establishment of Computer Assembly Factory...................................................
5.1 Key Success factors/ Practical Tips for Success..............................................................................
5.2 Internal and External Business (SWOT) Analysis..........................................................................
6. Market Study of the Project...............................................................................................................
5.1 Market Strategy and Marketing Arrangement..................................................................................
5.2.2. Projected Demand.....................................................................................................................
5.2.3. Pricing and Distribution...........................................................................................................
5.3. Planned Marketing and Product Mix Assessment...........................................................................
5.4 Planned Product Mix Production Plan.............................................................................................
5.5.1 Marketing Channel...................................................................................................................
6. Plant Capacity and Production Program...............................................................................................
6.1. Plant Capacity and Production Program.........................................................................................
7. Material and Inputs................................................................................................................................
7.1. Raw and Auxiliary Materials..........................................................................................................
7.2. Utilities...........................................................................................................................................
8. Technology and Engineering.................................................................................................................
8.1 Technology......................................................................................................................................
8.1.1 Production Process....................................................................................................................
8.2 Engineering......................................................................................................................................
8.2.1. Machinery and Equipment (Corrugated Iron Sheet)................................................................
8.3 Land, Building and Civil Works......................................................................................................
9. Human Resource and Training Requirement.........................................................................................
9.1 The management team.....................................................................................................................
9.2. Organization...................................................................................................................................
9.3 Human Resource..............................................................................................................................
9.4. Training Requirement.....................................................................................................................
10. Financial Analysis..............................................................................................................................
10.1 FINANCIAL PROJECTIONS.......................................................................................................
11. Economic and Social Benefits.............................................................................................................
12. Conclusion and recommendation.........................................................................................................
12.1 Conclusion.....................................................................................................................................
12.2 Recommendation...........................................................................................................................
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1.Executive Summary
1 Project Name Electronics manufacturing and assembling materials
manufacturing plant
2 Project Owner
3 Nationality Ethiopia ,Diaspora UK
4 Project Location Sebeta town , Oromia special zone surrounding finfine,
Oromia region
5 Project Computer assembly manufacturing like Screwdriver, Tweezers
Composition Flashlight, Magnifier, Canned compressed air ,Multi-meter and
Miscellaneous tools ,CPU, RAM, Hard drive, CD/DVD drive,
Keyboard ,Mouse and Monitor
6 Premises Required 10,000m2

7 Total Initial The total investment cost of the project is estimated at Birr
Investment Cost 200,000,000out of which 30% or Birr 60,000,000is to be
financed by the owner's equity, whereas the balance (70% or
140,000,000) is expected to be covered from Bank loan.
8 Employment The total manpower required for the factory will be 200
Opportunity individuals 100 permanent workers (50 skilled and 50
unskilled) and 100 casual laborers (50 skilled and 50
Unskilled)
9 Benefits of the Value add, supply of quality product, employment, income
Project for the generation, save foreign currency, and technology transfer
Region/Nation
10 Market Share 50 % of the product supplied to Domestic market and the

remaining 50 % will be exported to Different African
11 Production countries.
The production of those Computer assembly and accessory
process involves process such as forming, machining stage,
galvanizing, insulation and assembly
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1. Executive Summary
Even though Ethiopia is endowed with vast natural resources, due majority to the incorrect
policy of the former regimes, its economic & social development had remained so low and
backward. Moreover, the appears to be an ever-increasing demand for computers triggered
by accelerated change in technology and reduced purchasing prices. During the past few
years, computers, high-speed communication systems and computer software have become
more powerful and more useful to people both at home and at work.
The international trend of IT development and PC market shows that developing countries
like Ethiopia also need to develop their own IT network if they are to play an effective role
in the global market. Today, globalization has forced every business to remain connected to
the worldwide information network. The Ethiopian status is not any different. Ethiopian
manufacturers, traders, importers, exporters, dealers, commission agents, and the business
community in general, should have reliable information network and fast communication
systems in order to remain competitive in the globalized nature of today's market. At
present it can be said that effective communication is taking place almost exclusively by e-
mail and the Internet. This means the market for computers is large, unsaturated and
expanding in Ethiopia.
The availability of PCs at cheaper prices and preferred designs would obviously enhance
the development of ICT. It is seen that the demand for PCs in Ethiopia is increasing from
time to time. But, the supply so far is from imports, with an expenditure of considerable
sum of hard currency
In this regard, this thesis project attempts to study the feasibility of building a PC
assembly plant in Ethiopia applying modern computer assembly manufacturing plant
The promoter applies the method of trend analysis as well as market-buildup methods
to estimate the present and future demand of PCs in Ethiopia. Make or buy decision
analysis is carried out to indicate which components to make in-house and which ones
to import form outside sources. The technology, organization and implementation
plans are studied at the required depth. Finally, the financial viability of the project is
analyzed with the help of appropriate software
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During the past regimes, the role of private sectors in the national economic development to
struggle our basic enemies such as poverty, draught, has remained insignificant but now,
the new investment proclamations announced given a new impetus for private investor. The
existing Ethiopian government policy, attain the advantage of the free market economy
which replaced the post order of socio-Economic system which brought about the
dynamism of private sector. The accelerated growth and the development of Ethiopian
economy required systematic mobilization and use of financial resources.
It is known that the private sector had been prohibited to invest in any kinds of business
sector, except the state, due to the economic policy of the past regime. As a result, mainly
the state monopolized the production and supply of manufacturing industry, services for
business and other commercial activities quite for a long time. Therefore, the existing trend
of the economic policy of our country initiated us to engage in such
manufacturing/automobile assembly industry investments our output demanded currently to
retailers, and whole sellers and other manufacturing industry.
Although the policy environment to participate the private sector in manufacturing industry
development activities have been encouraging, the problem still exists which would require
more years for its solution. Hence, at this point it has to be clear that the demand for
assembled Computer needed by businessmen, governmental and non- governmental
organization uses those output to move from one place to another.
The promoter's manufacturing process covers assembly, software installation, functional

testing (including "burn-in"), and quality control. Throughout most of the company's
history, Dell manufactured desktop machines in-house and contracted out manufacturing of
base notebooks for configuration in-house
The international trend of IT development and PC market shows that developing countries
like Ethiopia also need to develop their own IT network if they are to play an effective role
in the global market. Today, globalization has forced every business to remain connected to
the worldwide information network. The Ethiopian status is not any different. Ethiopian
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manufacturers, traders, importers, exporters, dealers, commission agents, and the business
community in general, should have reliable information network and fast communication
systems in order to remain competitive in the globalized nature of today's market. At
present it can be said that effective communication is taking place almost exclusively by e-
mail and the Internet. This means the market for computers is large, unsaturated and
expanding in Ethiopia.
At present almost all the computers in the country are imported. This becomes a financial
burden on the country’s economy. It seems from all these discussion that there is a
substantial market for PCs in the country. Moreover, considering the population size of the
country and its development prospects and taking into account the role IT plays in the
economic activities of a country, the future market for PCs is very promising. Therefore, it
may be more than justified to establish a computer assembly plant in Ethiopia
In addition to the financial benefits awarded to the promoters, the establishment of such
plant contributes towards expanding the country's export, accrues substantial foreign
exchange, creates backward and forward economic linkages, improves the IT network of
the country by providing computers at a competitive price, and creates employment
opportunities for people
Therefore, the objective of this project is investigated establishment of a computer assembly
plant in Sebeta town ,Oromia special zone oromia region .
Computer assembly is a process in which all the internal components of the computer
system are fitted to make the computer functional. The main component involves CPU,
motherboard, memory, disk drives, Front panel of computer, Front cabinet of monitor, Back
cabinet of monitor, Stand base for monitor, Swivel table for monitor, Top and bottom cover
of keyboard, Keys for keyboard Power button etc. Tools are an essential part of computer
assembly and maintenance. It is also important to handle the tools carefully and safely.
While installing a computer and its peripherals, you should follow the basic safety
guidelines to prevent cuts, burns, electrical shock, and damage to eyesight. The technician
has to take care of the tools as well as personal safety. Safe working practice helps to cost
minimize to people. In this Unit, we will learn to use various tools required for installation
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of a computer and peripherals. We will also understand and follow the basic safety
precautions while handling tools and equipment during the installation process.
The owner of the project Ketsela Hailu and Simegn Yigezu have been undertaking
different businesses for many years. During his stay in business the owners of this company
has accumulated diversified skills and has also adopted working with many people and
customers. The Oromia regional state government has been exerting his maximum effort to
expand investment opportunities in the region, so as to foster the economic development of
the region and subduing the region’s big enemy that is the trap of poverty. Therefore, the
government has been preparing a viable business environment to attract many domestic and
foreign investors so that the dream of making poverty history turns to be true. Hence, it is
this viable investment policy which invited the owner to develop the interest and motivation
of opening the envisaged project in Oromia region with the name of Computer Assembly
and accessory Plant.
Therefore, the promoter is very motivated to establish this factory by believing to get the
required support from regional and governments by considering the multi-benefits of the
project.
The Company intends to bring the latest available technology developed by Computer and
compatible with the local conditions for higher technology. Assembly plants are highly
automated computer controlled assembly line operations.
The rationale behind financing this project is to substitute those fully imported Computer
total market share and profitability by increasing the Quality of the products as per ISO
industrial product standard through inserting the additional bank loan for the procuring
Computer assembled parts, equipment, Accessories, and employing additional manpower.
The marketing strategy designed for the output of the project is undertaking promotion,
website development, advertising, public relation and branding.
The existence of market demand gap due to total import of the product from abroad has also
identified for this project from different perspective. The implementation of the project has
significant contribution for employment creation, back ward linkage effect, utilization of
domestic resources and generation of profit tax to the government, and foreign exchange
earnings. The present (2020) demand for Computer is estimated at 2,139 units. The
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demand for Computer is projected to reach 2,139 units and 3,276 units by the year 2020 and
2026, respectively.
The principal raw materials required by the envisaged plant are Computer which are locally
available and imported.
The total investment cost of the project including working capital is estimated at Birr 200
million. The project is financially viable with an internal rate of return (IRR) of 49% and a
net present value (NPV) of Birr 274.9million discounted at 12%.
The project can create employment for 525 persons. The establishment of such factory will
have a foreign exchange saving effect to the country by substituting the current imports.
The project will also create forward linkage with the furniture and construction sub sectors
and also generates income for the Government in terms of tax revenue and payroll tax.
 PROCESS STRATEGIES
A process strategy defines how to produce a product or provide a service that Meets or
exceeds customer requirements, cost and managerial goals. And has long term effects on
Efficiency, production flexibility, Costs and quality.
Basically there are four process strategies:
 Process Focus
 Repetitive Focus
 Product Focus
 Mass Customization Focus
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PROCESS FOCUS
 Facilities are organized around specific activities or processes
 General purpose equipment and skilled personnel
 High degree of product flexibility
 Typically high costs and low equipment utilization
 Product flows may vary considerably making planning and scheduling a challenge
2. Policy Profile, Objective, Mission, Vision and Background of the Project
MASS CUSTOMIZATION
The Company’s Process Strategy is “Mass customization” that provides a

competitive advantage through:
 The rapid, low-cost production of goods and service to satisfy increasingly

unique customer desires
 Combines the flexibility of a process focus with the efficiency of a product focus
 Sell custom-built PCs directly to consumer
 Lean production processes and good product design allow responsiveness
 Integrate the Web into every aspect of its business
 Focus research on software designed to make installation and configuration

of its PCs fast and simple
GROWTH STRATEGY
 Process streamlining: Dell built a significant advantage in the

marketplace by focusing on innovations in the supply chain. Dell focused
on enabling "just in time" delivery of parts and components.
 Product diversification: Dell has used a diversification strategy to enable

business growth.
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 Market penetration: Dell has achieved market penetration
internationally with various segmentation strategies
2.1 Country Profile

Ethiopia is located between longitudes 33 and 48-degree east and latitudes 3 and 17 degrees
in the Horn of Africa. It is a land locked country bounded by the Sudan in the West, Kenya
in the South, Somalia in the Southeast, Djibouti in the East and Eritrea in the North and
Northeast. It is one of the largest African countries with a land area of about 1.1 million Sq.
Km. Ethiopia’s topography is rugged, ranging in altitude between 100m below sea level to
4000m above sea level.
The population of Ethiopia, based on the 2004 E.C census, is currently estimated to be
about 91 million. This makes the country the third most populous nation in Africa after
Nigeria and Egypt. About 80 percent of the Ethiopian population lives in rural areas. The
population pyramid is very wide at the bottom with 45 percent of the people under 16 years
of age.
The UN’s 2015 revised World Population Prospects report predicts that Ethiopia will be
home to over138 million people by 2030. Currently, Ethiopia is the second most populated
country in Africa behind Nigeria.
As per CIA World Fact book Ethiopian population is estimated 99,465,819 as of April
2016. Ethiopia’s population is characterized by having an extremely young average age.
The median age of the African state’s population is just over 17 years old. A young, eager
population often points to an increased labor pool, which has a positive effect for the
construction industry.
Demographics: distribution of the population according to age (CIA World Fact book,

2016)
 0-14 years: 43.71% (male 22,430,798/female 22,316,910)
 65 years and over: 2.91% (male 1,338,985/female 1,635,432) (2016 est.)
Fig 2.1: Demographics distribution of the population in Ethiopia, 2016
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Source: CIA World Fact book, 2016
Though the country has long history of independence, vast cultivable land, huge labor
force, and other potential natural resources, it remains one of the poorest nations in the
world. As per the second five-year strategic plan of the government, as at the end of 2007
E.C, about 6% of the country’s population expected to lives below the poverty line from
present figure 35%.Ethiopia has stayed long under unitary governments and weak economic
structure for decades.
After the seizure of political power by EPRDF in 1991, however, it has adopted the federal
system of Government, which has decentralized power to regional governments. Currently,
there are nine Regional States and two city councils that operate autonomously.
Legislations are issued at federal level by parliament through the House of peoples
Representatives, decisions and implementation policies are undertaken by the executive
body as represented by the federal council of ministers that is chaired by the Prime minister
of the Federal government.
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Ethiopia is among the most stable countries in the region. The country is most known for its
social stability and least crime rate, as well as strong public institutions and reliable police
service. Ethiopia ranked 34th under the Global Competitiveness report (2016-2017) for
impartial public decision making, well above most of its regional peers such as Kenya
(92nd) and South Africa (115th).
With a population of approximately, 100 million people and a rapidly growing middle class
society, Ethiopia is the second largest market in Africa, and is also part of the Common
Market for Eastern and Southern Africa (COMESA) comprising 19 member countries and
over 400 million people.
Addis Ababa has emerged as a regional hub and is home to key international organizations
such as the African Union (AU) and the United Nations Economic Commission for Africa.
Addis Ababa is also the main air hub for Africa and the home of Ethiopian Airlines, which
has won repeated recognition as the best airline in Africa. Ethiopian Airlines offers flights
to 94 international passenger destinations (52 in Africa, 17 in Europe and America and 25
in the Middle East and Asia), 19 domestic passenger destinations, and 35 cargo destinations
(21 in Africa, 11 in the Gulf, Middle East and Asia, and 3 in Europe). It carries two thirds
of Africa’s air freight.
Ethiopian products have duty-free, quota-free access to the U.S. and EU markets under the
African Growth and Opportunities Act (AGOA) and the Everything but Arms (EBA)
initiative, respectively.
2.2 Economic Policy Profile

Following the change in government in 1991, the economic policy in the country has
gradually shifted from centralized planning to a liberalized market-oriented system of
economic management with the objective of initiating the private sector to spearhead the
development of the country.
In this connection, the economic policy of the government is incorporated in four core
policy items. The first one is the government strategy known as Agricultural
Development–Led Industrialization (ADLI). The essence of this strategy rests in the belief
that the Agricultural sector can and should serve as the driving force for the rest of the
economy to make better use of the available national resources; namely agricultural land
and massive peasant population. More specifically, agriculture is envisaged to play a
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leading role in the growth of the economy and the export sector is targeted as a major
market outlet. Concurrently, agricultural growth is on the one hand expected to ensure the
food security of the country and avail necessary resources for the growth and development
of the industrial and service sectors consecutively. As per government policy also
industrialization is the ultimate goal of the policy direction and is believed to be realized
through the instrument of ADLI and the industrial development strategy that focuses
pulling out people of the nation from poverty and backwardness.
For the past 10 consecutive years, Ethiopia has been identified as one of the fastest growing
economies in the world. For the last decade, it registered consecutive GDP growth rates of
over 10.5% and is expected to sustain this course over the next three years. Ethiopia has
made significant progress in achieving the Millennium Development Goals. The share of its
population living below poverty line fell from more than 44 percent in 2000 to around 30
percent in 2010; by the end of the GTP I period (2014/15), the figures fell further to 23.4
percent (National Planning Commission 2015).
Fig 2.2: Economic Growth 2010/11-2014/15
Source: NBE, MoFEC, 2014/15

The promulgation of liberalized investment laws for the promotion and encouragement of
private investment in particular were among the major steps taken by the Government to
stimulate private sector investment in providing packages of incentives to domestic and/or
foreign private investors. The other core government policy is an affirmation of deliberate
and conscious government intervention in selected spheres of economic management. The
primary objective of this economic policy is to achieve rapid economic development.
Accordingly, state involvement in the economy can range from actually producing goods
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and services that the private sector finds unprofitable to providing various incentives to
private investors.
Currently, the Federal Government of Ethiopia is doing its level best in creation of
investment opportunities and its promotion which gradually is intended to reduce poverty
and backwardness. The government has undertaken quite a lot of measures in creating
conducive environment both for local and foreign investors at the federal and regional level
in which the role of Addis Ababa is of significant importance as a result of its huge
potential and conducive environment created since the city is capital city of the continent
Africa.
Fig 2.3: Ethiopia’s GDP Growth vs. Global Growth Leaders and Regional Peers
Source: African Review of Economics and Finance, “Ethiopia’s Investment Prospects: A

Sectorial Overview”,
Sebeta town on the way of western part of the country and nearby of Addis Ababa and
others presently shows impressive results in developing infrastructure facilities, conducive
investment atmosphere and is becoming the major destination of assembled Computer
product manufacturing industries. Its investment policies and strategies coupled with cheap
labor, conducive weather condition and untapped investment potential sites made it
preferable by both local and foreign investors. The town administration, in the nearest past,
is taking fruitful measures in reducing unemployment, poverty reduction and overall
economic, social and political developments consistent with the endeavor of the country
toward achieving the Millennium Development Goals (MDG). The source of this project
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idea is the envisaged improvements made at the sub-city especially increased concentration
of assembled Computer product producers as a result of private sectors initiatives in
general. Therefore, the source of project idea for this manufacturing industry is prevailing
conducive work atmosphere and rich potential of the assembled Computer users.
2.3 Background Information of the Company

ADMEMO Trading Plc was established in accordance with the commercial code of
Ethiopia and article and memorandum of association signed between the two shareholders.
The company has been mainly engaged in Computer assembly. They had been engaged in
business separately and in association at different levels and structures of business for many
years before they decide to merge all their business together in to one company structure
under the umbrella of the company By the year 2022, it has a plan to launch the Computer
assembly factory and develop its own manufacturing and brand.
2.4 Brief of this Project

 Name:- ADMEMO Trading Plc
 Address:- :-Diaspora UK
 Mobile:- +251911
 Type of project:- Computer Assembly
 Status of the project:- New
 Objective: - To produce Computer assembly
 Legal Form of Business:-sole proper
2.5 Company’s Objectives, Mission, Vision, Motto

Objective of the Company
It is always the aim of ADMEMO Trading Plc to become the key stakeholders of the
organization to bring success to both business local and international market. It will create a
permanent management system that will provide employees with both physical and mental
satisfaction. As the factory has planned to produce world class products, the plant will
maintain ISO 9001:2008 Quality Management System, all the processing system and the
quality industry and assembled Computer as per the international standards of ISO and
DIN.
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According to the goals and objectives of the organization, the organization has established
itself and its staff in the new vision, management and skill training, information technology,
modern and global business practices, by initiating its own administration, under-the-board
and other subordinates, business owners and even its customers. Without hesitation, we will
make every effort to ensure that our endeavor is in a position to prevail in the world of
competitive business. The organization is led by the same spirit, across the board.
The fast growing per capita consumption of those product in the country, and also in the
capital city of Ethiopia, import full dependency those products in the country, contributed
in increasing demand for those product users by governmental and non-governmental
organization. As a result there will be a gear demand for the project. This is why the
shareholders of the PLC decided to engage themself in such business. Specifically, the
project is established under the following objectives:
 Introducing new technology ensuring to produce quality and complete set of
electrical products to earn reasonable profit.
 Ensure customer satisfaction by providing standard products and comprehensive
services in one basket.
 Play self-role in the minimization of poverty, creating job opportunity and building
capacity & skill of professionals in the industry where the company is engaged.
 Build continuously the culture of competitiveness and dominating the competitors
market by providing superior quality automobile car
 To create job opportunity to the city populations
 To help the development activity in the surrounding communities
 As a back for other socio economic development of the area
 To generate profit to the company and hence improve owner economic status
 To substitute those imported Computer
 To create additional income to the government revenue in the form of tax
(indirectly)
 Establishes modern supervisory system that reinforces its plans and goals.
 Creates ideas that satisfy with new leadership and norms, and systems that integrate
modern IT systems with both regional and international conditions.
 Will expanded workforce management systems to ensure that new jobs will
continue to be carried out by the traditional technology and skilled man power.
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Company Vision
To continue being competitive manufacturer locally and to be one of the proffered
industries at international level, manned by well trained and motivated professionals, that is
invariably the principal choice especially for competitively priced, high volume, and
acceptable quality product requirements.
Company Mission
 Quality: producing quality standard assembled Computer
• Value: We offer greater value to our users with long lives of the product
• Integrity: Our customers depend on the quality of our products. Our commitment to
the highest standard is the foundation of our customers’ trust.
Creating environmentally friendly manufacturing industry (Green Manufacturing
3. The Project Location
The envisaged Computer assembly products manufacturing plant of will establish in
Oromia Regional State, Sebeta town. It is situated at about 25kms in the heart of Addis
Ababa is the capital of the country. The total land holding of the project is estimated at
10,000 square meters, which has been obtained from the investment Agency of Oromia
Regional State based on the current urban land use policy of the Oromia Regional State
Sebeta town.
It has been selected to located envisaged project due to various factors that are expected to
have positive impact on the success of the plant. This, no doubt, will increase the
commercial activities and the economic development of the town or region from which the
project could benefit a lot. These are outlined hereunder.
 Proximity to the major potential markets for project outputs.
 Availability of relatively well developed infrastructural facilities such as
Transportation network which is connect West Showa with the central, southern
and western regions of the country.
 Public utilities like electricity, telecommunication services and piped water as well
as financial institutions and other social infrastructures such as schools, Hospitals,
hotels and thriving business community.
Therefore, Sebeta town Industrial zone is said to be an ideal place to locate and successfully
operate the envisaged Computer assembly products manufacturing plant.
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4. The Project
4.1.Product Description (Computer assembly)
3.1. PROCEDURE DEFINITION
The final phase of the factory design process will involve the installation all of the
equipment, verification of the operation of the planned processes, and the development of
procedures that would be used for training and execution. During the development of these
procedures, the errors in any assumptions will be analyzed, and adjustments to the layout,
equipment and personnel requirements will be made.
3.2. PRODUCTS
The design of a factory will depend on the products to be produced; it is

therefore useful to discuss the characteristics of the product prior to discussing the design
of the factory. The products are likely to be of 2 types: computer . Both types will
include various components which include Motherboards, memory, Processor, CD-ROM,
Hard disk drives, Floppy Disk drive, and Software. Although these various components are
combined together using different configurations, the final assembly procedure is the same.
1. THE ASSEMBLY PROCESS
The assembly process is a very important aspect in a PC assembly plant. While the
assembly process generally takes less time than loading software or testing the machine,
it is arguably more valuable to the end customer. Customers can and will load software,
but choose not to assemble their machines from individual components. The assembly
process development can be broken into two decisions. i.e whether the assembly process
will be parallel or serial. Issues pertinent to this decision include the variability of the
product assembly process, quality concerns, and demand volume. Once this decision has
been made, the team must determine how different products or variations will be
assembled.
Dedicated lines or stations can be setup for each distinct product or product family, or a
single line or generic station can be used at which all of the different products will be
assembled.
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4.1. PARALLEL Vs SERIAL ASSEMBLY
4.1.1. Parallel Assembly
In a parallel assembly structure the entire assembly process is completed at a single station,
with stations replicated based on cycle time in order to meet demand quantities. One or
a small group of assemblers is responsible for the entire assembly process for units scheduled
at their station.
4.1.2. Serial Assembly

A serial assembly process is more commonly known as an assembly line. The assembly
process is broken into individual steps, and completed by different assemblers in a specific
sequence. Demand quantities are met by increasing the number of steps in the process, and
thereby decreasing the cycle time at each individual step. As throughput requirements
are increased, the amount of work on an individual unit performed by each assembler
decreases.
NOTE
There are obviously many factors that influence the decision of whether to structure the
assembly process in serial or in parallel. There is no “one size fits all” answer; individual
circumstances will dictate which is more effective for a given product.
2. MANUFACTURING CONSTRAINTS
After designing the structure of the manufacturing processes, we must determine the
capacity of each of the different processes. The nature of the final assembly process is such
that there is inherent variability in each sub-process. Reducing this inherent variability is an
essential objective in order to avoid bottlenecks during the manufacturing processes,
hence we should design the capacity and buffers in order to overcome this variability
and ensure we can meet our throughput goals.
3. TOOLS FOR PC ASSEMBLY
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Assembling a PC from the scratch involves the use of certain tools, the tools listed below are the
standard tools used for PC assembly.
 Screwdriver
 Tweezers
 Flashlight
 Magnifier
 Canned compressed air
 Multi-meter
 Miscellaneous tools
4. PC COMPONENTS
There are several components that make up the PC, the main components that constitute the
PC will be discussed in brief.
7.1. PC CASE
One of the first items to buy when building a PC is the casing. There are two basic styles
of casing,
Which ever is used, the process for assembling the PC is the same. they are :
 Desktop
 Tower
Also cases are specific to motherboard types. This is known as the form factor of the
motherboard. Other factors also dete rmine the style of case to choose they include Size,
Looks, features, stability, ease of opening, ease of closing, expansion possibilities and
interior.
7.2. POWER SUPPLY UNITS
Most PC cases come with there own power supply unit (PSU).Factors such as Power
consumption and power output determine if a PSU is appropriate or good. A good PSU
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must be able to de liver all the power the PC needs. The various components of the PC
also have various power consumption rating. It must be ensured that the line volta ge of the
PSU is the corre ct rating. E.g The line volta ge rating for Nigeria is 220-240v.
7.3. CENTRAL PROCESSING UNIT and MOTHERBOARD

The CPU is the brain of the PC. It is where all the data processing is carried out and
where all the instructions are interpreted. The motherboard is the nervous system,
responsible for carrying data to and from other devices in the PC and connected to it. The
CPU fits into th e motherboard via a socket called a ZIF socket. (ZIF stands for Zero
Insertion Force, and the hundreds of pins on the base of the CPU are designed to slip
effortlessly into the socket.). The motherboard provides the circuitry that forms the
pathways between the CPU and the RAM, hard drives, optical drives (CD/DVD driv es),
expansion cards, and other devices as well as carrying data to and from other
components. The motherboard is responsible for carrying power to these devices.
CPUs are one area that causes people a lot of confusion and frustration. Basically, there
are two major corporations competing in the PC arena. These are:
o INTEL
o AMD
The major difference between CPUs is determined by the following
o Speed
o Socket Types
o Cache (Built in memory)
o Dual-core/hyper-threading/64-bit processors
Standard Motherboard Features
The standard motherboard contains several components that work together but are
assigned for different purposes. They are:
o CPU sockets
21
o RAM slots
o Chipsets
o PCI expansion card slots
o AGP/PCI express expansion slots (for video adapter)
o Hard drive/optical drive conne ctors (IDE/SATA)
o Floppy drive connector
o Power conne ctors
o Conne ctors for CPU and case fans
o Keyboard socket
o Mouse port
22
o Serial/parallel port
o USB ports
Other optional motherboard features include:

o On board video adaptor
o On-board modem
o On-board network adapter
o Additional USB ports
o Fire wire ports

7.4. RANDOM ACCESS MEMORY
RAM (an acronym for random access memory) is a working memory space that PCs
use to load data and programs that are regularly accessed. The data stored in
RAM can be accessed in any order (hence the word “random”) as opposed to, say,
data stored on magnetic tapes, which has to be read sequentially (this format is
uncommon nowadays other than for backups). The main reason for loading data
into RAM as opposed to accessing data directly off the hard drive is that it’s much
faster to access data from RAM than it is from a hard drive. There are different types
of RAM but the common modern types are
 DDR RAM
 DDR2 RAM
DDR stands for Double Data Rate, the word “ double” because it is twice as fast as
regular SDRAM (Synchronous Dynamic Random Access Memory).
7.5. HARD DRIVE

The hard drive is a computer’s main storage device and is used to store data such as
the operating system, the applications, and the user’s files and documents, as well as
system settings particular to the user. What goes on inside a hard drive is not important
information when it comes to building a PC.
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5. SAFETY CONSIDERATIONS
In order to maintain high QoS and also produce PCs that would be of world standard,
certain precautions must be implemented during the assembly process. This will help
reduce manufacturing faults and waste of materials during production.
i. Double-check that the CPU and motherboard are compatible:
ii. The Engineer should check the specification carefully before opening the items to
ensure that the CPU and motherboard are compatible
iii. Keep CPUs in their packaging until required: A modern CPU can have almost a
thousand pins on the base to allow it to connect up to a motherboard. These are very small,
thin, and fragile and very easily damaged. When the time comes to take the CPU out of
the packaging, the Engineer must take great care not to damage the CPU (or to cut
himself—CPUs can be well packaged and difficult to remove from the plastic bubble
packaging).
iv. Store the motherboard in the original packaging:
v. While looking at and examining the motherboard, the Engineer must be careful
not to flex or bend the board (minute cracks and fractures can wreck a
motherboard); take precautions against zapping it with static electricity and return it
to the ESD bag and box for storage. No other components should be kept in the
same compartment used for storing the motherboards
vi. Store your hard drive in a well protected box and wrapped in an antistatic bag:
This is the way the drive is stored when it was purchased .Keep it stored like
this until it is required.
vii. The hard drive should be protected from falls and sharp knocks because it’s a
sensitive mechanical device.
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viii. The connectors at the end of the drive must be protected from damage. These
connectors consist of small pins that are easily bent or broken off. A bent pin can be
straightened with a pair of tweezers if the Engineer is very careful (and very lucky),
but a broken pin means a dead drive.
ix. Hard drive should be installed at room temperature. If the hard drive has been stored
in a cold, humid environment, the drive should be allowed to come up to room
temperature naturally over a few hours before installing it. This will dramatically
reduce the amount of wear and tear that the drive will experienc e when first
switched on. It’s also a good idea to do this too if it’s just been delivered to you
after transit in the mail.
x. Never peel any labels off the drive; this can invalidate your warranty.
xi. Stuck power cables and data ribbons: The power cables and data ribbons
are prime candidates for becoming stuck after being fitted. Never tug on the wires
to remove them because this can easily damage the cables. To safely remove the
connector firmly grasp the connector and pull on it gently, gradually increasing
the force until it gives way.
6. STAFF QUALIFICATION:
Employment of staff is a critical safety issue. The Staff in the assembly plant must be
mentally and educationally sound. It is advised that the engineers have the proper
professional certification and academic qualification.
7. ASSEMBLING THE PC
Before a PC can be assembled, at the very least, the following components must be
available.
 PC case
 Motherboard with on-bo ard video and audio
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 CPU
 RAM
 Hard drive
 CD/DVD drive
 Keyboard
 Mouse
 Monitor
Below is a summary of the steps involved in assembling the PC from the scratch. The
configuration of each PC could be different but the procedure is the same.
 Each component that will be used in building the PC is tested separately

e.g Testing the PSU with a multi-meter to ensure the line voltage reading is correct, checking
the HDD pins, testing the RAM, reading the motherboard manual and testing it etc.
 Coupling the various components into the PC casing, ensuring that every screw is in
place.
 Loading the Operating system software and other applications
 General test running and configuration check
 Packaging of the PC
 Stora ge
The assembly process is a very important aspect in a PC assembly plant. While the assembly
process generally takes less time than loading software or testing the machine, it is arguably
more valuable to the end customer. Customers can and will load software, but choose not to
assemble their machines from individual components. The assembly process development can be
broken into two decisions. i.e whether the assembly process will be parallel or serial. Issues
pertinent to this decision include the variability of the product assembly process, quality
concerns, and demand volume. Once this decision has been made, the team must determine how
different products or variations will be assembled. Dedicated lines or stations can be setup for
each distinct product or product family, or a single line or generic station can be used at which
all of the different products will be assembled.
Assembly Components
The current architecture of personal computers has three main components. These are the CPU,
monitor and input/output (I/O) devices. The sub-assemblies in each of these components are
listed below.
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System Unit Components
The system unit, nowadays is designed as a tower form, is housed in a metallic case (front part
plastic) or in a casing of all plastic material. Within the system unit it is common to incorporate
the following sub- assemblies [
Mother board - the large flat green board in the center of the case. There are two
types of motherboard designs standards: AT and Baby AT; and a third one, the ATX board now
included as Intel's new standard. The following are socketed or soldered onto the motherboard:
Processor, BIOS, PC chipset, Cache RAM, Expansion bus slots, keyboard and mouse sockets,
video and Internet.
Processor - Considered as "brain" of the computer and plays a major part in determining how
"powerful" a computer is. Traditionally produced by Intel Corporation (U.S.A) although now
other chip manufacturers are on the increase. There have been several developments since the
first generation of Intel 8088 processor manufactured in 1982. Today, we have the seventh-
generation Pentium IV with many advanced features
VGA card - a unit called video graphics adapter (array), which is responsible for graphics
display of data, characters, images, etc. on the screen.
Floppy disk drive - A drive for external storage medium, current standard 3½" high density
(1.44KB)
Hard disk drive - built in storage medium with its drive; hard (as opposed to
floppy), sealed metal platters coated in magnetic material. There are different
types: 20GB, 40GB, 60GB and more
CD- Rom drive - Optical devices that read data from compact disks
Memory modules - System memory units, RAM: 32MB, 64MB, 128MB, and
256MB
Data Bus - Data transfer line between the processor, RAM and other
motherboard components (SCSI and USB types)
Expansion slots - Several different types of cards that support the
application of I/O systems. Such as modems, sound card, graphics card, etc.
ISA or PCI are commonly encountered connectors of these cards.
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Power supply unit - consists of transformer, circuit board, and cooling fan, all-
in- one, housed in sheet metal casing.
I/O interface - Input/output connections such as Universal Serial Bus
(USB) ports, parallel ports, serial port, line-in/out jack, microphone jacks,
Game port, etc.
Housing - Metallic or plastic casing with modular design that houses the
motherboard and other components of the CPU. The state of the art design is a
tower type that stands alone on a desktop or at the floor. The front part where
the drives are accessed from is made of plastic and here are attached plastic
power button
Monitor
The monitor of a PC can be treated as peripheral equipment. But most PC are
sold together with a monitor that it can be considered as part of the system.
Despite its larger size, the monitor consists of few elements:
 CRT (Cathode Ray Tube) consisting of three electronic color guns for
generating colors.
 Circuitry board
 Housing (plastic), and
 Stand frame (plastic)
 Peripherals
 The most common peripheral equipments of a PC are keyboard, mouse
and speaker each of these are described below.
 Keyboard:
The keyboard is all plastic material and consists of:
 main frame
 letter, symbol, numeric and function knobs
 small spring elements
 circuit board
Mouse:
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 This is also made of plastic material. It consists of a rotating ball, wheel,
circuit card and housing.
Speaker:
Recently computers are marketed with a sound system. Speakers can be either
built inside the monitor case or manufactured as a separate unit. The latter
types are common. A speaker consists of an electro- magnetic component and
a plastic housing
“Our mission is to be the most successful IT systems company in the world by delivering the best customer
experience in all markets we serve. In doing so, Dell will meet customer expectations of:
 highest quality
 leading technology
 competitive pricing
 individual and company accountability
 best-in-class service and support
 flexible customization capability
The following PC components are made from plastic raw materials (ABS grade HI: 121 and ABS grade
SG-175) by injection moulding process:
- Front panel of computer
- Front cabinet of monitor
- Back cabinet of monitor
- Stand base for monitor
- Swivel table for monitor
- Top and bottom cover of keyboard
- Keys for keyboard
- Power button
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Machinery and Equipment
The machinery and equipment required for the component assembly plant are
generally those used for electronic assembly plant. The major units are
dispensing units, pick and place units, soldering equipment, testing and
quality check instruments, mechanical assembly tools, conveyor belts, etc.
A list of machinery and equipment required for the plant and estimates of the
respective costs is provided in table 6.2 accordingly, the total cost of
machinery & equipment of the assembly unit is about Birr 6,583,000. Thus,
the total investment of plant machinery and equipment, including the
injection-moulding unit amounts to Birr 14,033,000.
Figure 6.2. The steps involved in the assembly of single sided PCB with SMCs.
Bare board
Apply Adhesive
Place SMT components
Cure adhesive
Invert board
Wave solder
Clean PCB
Visual Inspection
2 List and cost of machinery and equipment for PC assembly plant.

S.N Item Qty Unit cost, Birr Total cost, Birr
1. Electronic test banks 2 220,000 440,000
2. Protocol analyzer 1 170,000 170,000
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3. Oscilloscope 2 8,500 17,000
4. Color generator 1 190,000 190,000
5. Conveyor system 1 1,000,000 1,000,000
6. Pick and place robot 1 2,920,000 2,920,000
7. Power supply tester 2 275,000 550,000
8. Soldering equipment 10 5,000 50,000
9. Mounter 2 95,000 190,000
10. Technician carry on items 120 300 36,000
11. Power supply equipment 2 210,000 420,000
12. Generator 1 600,000 600,000
Total 6,583,000
4.1.2. Production Process
The production of those computer assembly items involves manufacturing process such as
forming, machining stage, galvanizing stage, insulation and assembly are describes as follows:
Assembly of PC components
Electronics manufacture can be classified into three type
 The manufacture of printed circuit boards (PCBs) and electronic components
 The placement of components into PCBs
 The assembly of boards into a plastic/metal box
In case of this project processes (b) and (c) would be relevant as all the PCBs and electronic
components are to be imported in SKD (Semi Knocked Down) form
The placement of components into PCBs has been made for several years by the method
known as through-hole components technology, (THT) but now there is a growing trend
where this method is replaced by surface mounting technology (SMT) in which the
component leads or terminals are soldered to the top surface of the board.
SMT offers the advantage of reduced cost, size and improved reliability. The new volume -
efficient designs for integrated circuits (ICs) and the use of passive chip components allow
more dense circuit packing, permitting either in increase in function for a given equipment
size or a reduction in equipment size and lower system costs
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It has been found that approximately 40% of the cost of an electronic product is in the
assembly of components onto a PCB (printed circuit board). Therefore, it is essential to
select the appropriate assembly method to minimize the cost of manufacture of a product
[21]. Below are described various component assembly techniques that are currently used in
the electronics industry including the assembly of PCs.
Manual Assembly Of Through-Hole Component
Depending on the quantity and variety of boards required, three types of manual production
are commonly used.
Low Throughput Manual Assembly
In this type of assembly an operator completes the entire board, including soldering. The
board may consist of through-hole and surface-mounted components. The reason for
applying this type of production line is usually that either the board to be produced is very
densely populated with components or the board contains delicate or sensitive components
Medium Throughput Manual Assembly

A cell is set up consisting of several operators and each person is trained to assemble up to
10 components manually onto the PCB. When the board reaches the end of the line, it is
complete and, after visual inspection, is ready for wave soldering. To aid insertion of
components a master board is usually made available to each operator
5. Major Facts for the Establishment of Computer Assembly Factory

Computer sector plays a significant role in the economic growth of our Country, as a source of
jobs and capital investment, as a secure investment for individual and family savings, and as an
essential contributor to personal happiness. So before making any investment decision, it is
advisable to evaluate the associated risk factors by taking into consideration certain key
elements. These may include availability of resources, service industry knowledge, and specific
managerial and technical skill set.
The development of a vibrant automotive industry is based on ample supply of affordable land,
with easy access to transportation and efficient distribution of necessities such as energy and
water. Financial institutions are an important partner in this sector. To broaden the consumer
base for industry ownership, especially among automotive industry, banks and financial
institutions play a vital role.
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5.1 Key Success factors/ Practical Tips for Success
Macro level Success Factors
 Abundant Labor Resource
With a population of more than 100 million, Ethiopia can provide sufficient labor force with
cost-competitiveness for the development of labor Intensive manufacturing sector.
 Ethiopia’s labor law, which regulates worker-employer relations, is in line with
international conventions.
 With over 50 million workers, Ethiopia has the second largest labor force in Africa
(World Bank’s Doing Business Report, 2014).
 Ethiopia’s minimum wage is among the lowest in Africa, with only 5 countries –
Burundi, Uganda, Egypt, Gambia and Malawi – having lower minimum wages
(International Labor Organization, 2010/11).
 Generally, private sector monthly salaries for university graduates range from USD 150
to USD 200, while construction sector monthly wages range from USD 60 for daily
laborers to USD 300 for a foreman (Source: Ethiopia’s Ministry of Urban Development
and Construction).
 Support through Policy and Incentives

The government has been steadily pushing towards market-oriented reform by means of
developing the private sector, deregulating rigid control over the economy, liberalizing foreign
exchange, lowering tariff rate, etc.
 Customs duty payment exemption on capital goods and construction materials, and on
spare parts whose value is not greater than 15% of the imported capital goods’ total
value;
 Investors have the right to ask refund of customs duty paid on inputs (raw materials and
components) when buying capital goods or construction materials from local
manufacturing industries.
 Income tax exemption of up to 6 years for manufacturing and agro-processing, and of up
to 9 years for agricultural investment. Additional 2-4 years income tax exemption for
exporting investors located within industrial parks and 10-15 years exemption for
industrial park developers;
 Carry forward of losses for half of the tax holiday period;
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 Several export incentives, including the Duty Draw-Back, Voucher, Bonded Factory and
Manufacturing Warehouse, and Export Credit Guarantee schemes.
 In addition, the government guarantees the remittance of profit, dividends, principals and
interest payments on external loans, and the provision of land at competitive lease prices.
 Increased Domestic Demand
Ethiopia has a large territory with a large population. The growth rate of the population is 2.6%,
creating a large potential market. According to the country economic development programme,
the average growth rate of Growth Domestic Product (GDP) is 8.9% in 2006, 10.6% in 2007 and
11.1% in 2008. As a result of the development of the economy and the progress made in
reduction of poverty as well as the improvement of people living standards, it is believed that not
only the present market demand would increase, but also a new market demand will be increased
in the future.
 The country has registered a continuous economic growth for the past ten consecutive
years. It has registered an average GDP growth of more than 10% per year for these
periods indicating the smooth running of the country's economy.
 There is improvement in basic infrastructural facility (i.e. road network,
telecommunications and electricity facility) in the country.
 Existence of both governmental and private banks to avail credit to diversified types of
business.
 The country has cheap labor which results in low labor cost
Sector Level Success Factors
 Cheap labor force
 Availability of basic infrastructure
 Availability of market for the product
 Government’s special attention towards manufacturing sector
Strategic Recommendations of the Project Consultant
 The automotive industry is only profitable if the projects are completed in time.
 Quality of assembled automobile car used ensures quality of output. Superior quality is
the best competitive advantage these days.
 Careful selection of production area counts towards selling price and timely sales.
Future Challenges and Risk Factors
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Generally, this manufacturing industry faces a range of challenges in the coming years if the
policy and regulatory environment remains broadly unchanged from its present form.
Inadequate Infrastructure: Transpiration facilities in from port to producing areas especially at

times of economic boom for that product raw material are the major problem. Most raw
materials come from abroad country so that it takes long time to transport material to the
manufacturing area at the right time.
The provision of supporting infrastructure is a key component to the expansion of the automotive
sector. However, the lack of provision of basic infrastructure and services has impeded progress
in certain neighborhoods and held back the plans of developers who had acquired the sector.
Problems are also aggravated by the lack of advanced planning and coordination between the /
administration and infrastructure providers (e.g. electricity/water suppliers), generating
unnecessary costs and delays in the manufacturing sector
Finance Availability: Lack of finance, particularly long-term finance, is a widespread constraint

facing private business in Ethiopia and the manufacturing sector is no exception. The
consequences of inadequate finance may be particularly more pronounced in the manufacturing
sector, however, given the effects on both sellers (who find it difficult to start and complete their
developments without adequate funding) and on buyers (who are often unable to secure
sufficiently affordable price). In the current financial environment, both project finance (for
developers) and long-term borrower (for buyers) remain scarce, implying that most
manufacturing sector developers tend to self-finance a majority of their new industry. Unless the
financial system can, over time, provide such long-term financing to both sellers and prospective
buyers, affordability will remain difficult and the underdevelopment of the financial system will
continue to act as a drag on what could otherwise be much faster and broader growth in the
manufacturing sector.
Shortage of Production Inputs (Raw Materials): The extent of local borrowing is constrained
by lack of sufficient finance from domestic banks and other cooperative credit facilities.
However some few incidences of newly emerging local small scale organization and cooperative
credit that facilitates extension of small loans to electrical product producers though its coverage
is so small as a result there may have not got a capacity to buy our product
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Lack of Access to Market Information: Updating the business community on current local and
world market trends, prospects and challenges to properly respond to market demands and design
appropriate marketing strategy is not materialized.
Reliable and update information also helps to utilize opportunities created by supply shortages
another bottlenecks from foreign producers and flexibly meet changes in product quality and
requirement imposed by importers.
Expected Key Risk Factor
Risk is the threat or probability that an action or event will adversely affect an organization
ability to achieve its objectives. The major risks are: Change in exchange rate may affect import
of raw materials
Expected Contingence Plan for Risk Management
Every project and organization can experience unfavorable incidents that can prevent it from
continuing its normal operation. One of the first contingence planning to be undertaken is to
prepare a comprehensive list of the potentially serious incident that could affect the normal
operation of the business. A major risk management technique to mitigate the undesirable effects
is described as follows;
 Maintain risk management plan: Risk Management is the process of identifying,
assessing, responding to, monitoring, and reporting risks. This Risk Management Plan
defines how risks associated with PLC project will be identified, analyzed, and managed.
It outlines how risk management activities will be performed, recorded, and monitored
throughout the lifecycle of the project and provides templates and practices for recording
and prioritizing risks. The Risk Management Plan should be created in the Planning
Phase and should be monitored and updated throughout the project. For each risk that
will be mitigated, the project team will identify ways to prevent the risk from occurring
or reduce its impact or probability of occurring.
 Recently despite the government’s big effort to control and maintain law and order,
violence in some parts of the country had destroyed significant number of factory plants.
As this PLC automobile assembly factory plant will not be imminent of this threat some
constant risk mitigation methods should be maintain thoroughly. This may include
minimizing the stoke of raw materials at the plant to the minimum, placing finished
36 | P a g e
products to other store or facility ASAP, arrangement of separate show rooms and if
possible management (head office), assembly and packing lines in different location,
minimizing the presence of cash all time, minimizing the number of vehicles at night at
the plant, reviewing the insurance policies etc. For each major risk that is to be mitigated
or that is accepted, a course of action will have be outlined for the event that the risk does
materialize in order to minimize its impact.
 Volatility of the exchange rate on market price of imported raw material and final output
is a major risk. This can be managed through importing large amount of raw material
once. Besides effective local marketing and promoting is an important risk management
tool together with quality control
 Development of strong customer relationships
5.2
Internal and External Business (SWOT) Analysis

Internal Strength and weakness Analysis
Strengths
 The Relatively Low labor cost compared with those neighboring African countries
 The selected production technology will ensure production of high quality assembled
automobile car at the required time.
 Secured market for its product for reasonable time. Since the demand supply gap is huge
and major quantity is met through import
 Availability of good market for quality assembled automobile car
 Due to the growth in industry, construction and building, communication and IT sector.
 Stable macroeconomic policy
 Long Experience of the Investors in Entrepreneurship and business management.
 The proposed plant will be equipped with state of the art (modern technologies) which
enables it to produce quality products on shorter time.
 The plant will adopt modern management system throughout the plant.
Weaknesses
 Compliance with international quality standards, due to increasing competition, the
import must attain high standards in product quality
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 Lack of capacity to diversify and scaling up products due to high technology cost
(Economies of Scale)
External Opportunity and Treat Analysis
Opportunities
 Appropriate incentives by the government plus aggressive marketing and high quality
standards from plastic product producers. Other countries in the region like Kenya and
Uganda also enjoy zero-rated tax incentives for imported machinery and equipment. This
has encouraged rapid growth of those Computer industry in these countries.
 Ethiopia enjoys the tropical climate's distinctive advantage, reliable infrastructure,
abundant water resources and cheap labor that would allow for continuous production of
good quality output. In order to remain competitive, the challenge facing the producers is
therefore, adequate understanding of the market dynamics in terms of our product, choice
of marketing channels and factors influencing price fluctuations. Once this is properly
documented, the management must then plan the output production to meet the market
demands so as to reap maximum benefits.
 The various investment incentive extended by government such as land at low lease cost,
improved infrastructural for industry areas and Sufficient demand for products in the
local market.
 Government support to the industry for import substitution and currency saving and
Favorable and supportive government policies
 Good credit facilities & insurance service, Easy access to land, Infrastructure
development and socioeconomic improvement of the country
Threats
 Shortage of foreign currency for import for assembled Computer parts, and Political
instability in oil producing country
 The import of other similar products that may shift the consumer preference and
Increment of new investors on this field which can lead to reduction in the market share
 The negative impacts of the continuously increasing cost of production, i.e., fuel, spare
parts and raw materials;
 Advanced production technology employed by foreign manufacturers which allow them
to produce superior quality products at better prices.
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6. Market Study of the Project
5.1 Market Strategy and Marketing Arrangement
In determining the plant capacity there are several factors that must be given due consideration.
Some of these are:
 Demand - supply gap and demand projection
 Market penetration
 Investment outlays
 Economic scale of production
In our case the demand-supply gap and market penetration problems would be more important.
According to the information obtained from the Investment office of Ethiopia two investors with a
combined production capacity of only 3500 PCs per year, have registered to carry out investments on
computer Assembly plant. Thus it can be said that so far there are no well-organized PC assembly plant
in the country. Until now the greater portion of the supply for PCs is met though imports
According to the market study discussed in section 4.2, the present demand is estimated in the range of
25,000 to 30,000 PCs per year. On the conservative estimate the demand after five years and ten years
respectively reaches 65,000 and 120, 000. One may consider the demand between the current year
and five years down the line to propose a proper plant capacity. Thus starting with a capacity of 15,000
PCs a year and expanding the plant to a double capacity of 30,000 PCs per year at the end of the fifth
year of operation could be a good strategy. The selection of 15,000 PCs per year plant capacity has left a
room, amounting to 50% of the total demand, for other competitors from imports and/or local suppliers
Production Program
For reasons of market penetration and technical skill requirements the production program is proposed
to start by 75% in the initial year and progressively increase to 85% and 100% in the following years
respectively
Table 4.13 shows the production program. Implementation of the project will take 3.5 years time. Thus
assuming project implementation will begin in 2003 the start-up of operation of the plant will be in the
year 2022
Table 4.13 Production Program
Operating capacity
Year % No. Of PCs
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2024 75% 11,250
2025 85% 12,750
2026and beyond 100% 15,000
The size of this sector is so big that it is difficult to reach every office and assess the demand for
computers. Therefore, the methodology applied here too is first to quantify the size of work force in this
sector and then determine the number of civil service offices both at the federal and regional levels. In
doing so, information obtained from the Federal Civil Service Commission (CSC) have been used as the
main source (table 4.5). Next, some randomly selected offices which are located in Addis Ababa were
visited to gather data concerning the use and demand of computers in the respective offices.
The information obtained from the Federal Civil Service Commission shows that there are nine National
Regional States (Tigray, Amhara, Oromya, Somale, Benshangul Gumuz, Hareri, Addis Ababa City
Administration, and Diredawa Administration Council) that have complete manpower data. Each of
these states comprises 15 offices of different duties and responsibilities. Thus the number of
government offices in the Regional States would be about 135 [33]. From table 4.5 we see that the
number of Federal government offices is 93, which brings the number of government offices all over the
country to 228.
Business (Including Service) Sector

This sector incorporates a large number of firms both small and big ones in terms of asset
ownership and turnover of capital. By business sector it is meant that those who are involved
in the trading activities (import, export distribution and retailing), hotel services, banking
and insurance, travel and tourism services, etc.
Obviously the list under this category could reach tens of thousands if not hundreds of
thousands. However, the study has found it reasonable to consider those business entities that are
organized in trade associations such as the chambers of commerce. In this respect according to
data obtained from the Addis Ababa Chamber of Commerce (AACC), which have the largest
number of membership than any of the other chambers in the country, there are about 7,500
companies involved in different business lines. This figure refers only to the size of business
40 | P a g e
firms in Addis Ababa and at the same time those who are members of the Addis Ababa Chamber
of commerce
Table 6.6 shows the classifications of these companies in terms of range of capital, and we see
that the grouping constitutes eleven ranges. The first groups of companies have capital
ownership of above 1,000,000 Birr and are about 300 in number. The last group, on the other
hand is with a capital of 1,000 to 2,000 Birr and their number is about 80
The same source also shows that currently, the numbers of traders that are connected to the
Internet are not more than 1000. However, because of the growing importance of e-commerce
(electronic-commerce) the number of Internet users is expected to increase along with the
expansion of Internet service in the country. To understand how e-commerce is getting
importance world wide let us see the situation in some details.
E-commerce is the process of business transactions carried out through the Internet technologies.
In simple terms it is business that runs 24 hours a day throughout the year where trade can
happen from any country or continent in the world
The Present Aggregate Demand
Summing up the estimates provided above, according to market-buildup method, table 3.11
shows the aggregate present demand of computers in the country, which is in the order of 29,000
PCs.
Table 4.11 Aggregate Present Demand of Computer in Ethiopia
User sector Quantity demand in number of PCs

Manufacturing 3,580
Government offices 6,840
Business 10,00
0
Education & 5,000
research
Others (NGOs, etc) 3,500
Total 28,90
41 | P a g e
5.2.2. Projected Demand
The demand analysis made by the method of trend analysis of computer imports as well as
sample survey according to market build-up method have resulted in a variation of only about
4,500 PCs for the current demand. The method of trend analysis seems to have overestimated the
market to some extent. The reason, in the opinion of the researcher, could be the registration of
some electronic equipments, say like industrial microprocessors, lumped together in the list of
personal computers. Even so, however, the import of such PC related items is not as such large
that basically it will not create data disagreement
Thus based on the results of both methods of market analysis, the present demand for personal
computers in Ethiopia is in the range of 25,000 to 30,000 PCs. For the purpose of future
projections the import statistics can be relied upon which taking the recent 3-years average,
gives an annual market growth rate of 50%. This growth rate can be considered applicable for
the coming five to ten years. Projections made this way are shown in Table 4
As a final remark to the market analysis, computer demand depends on the user acceptance of
computer technology. Studies made on the subject show that users accept computer technology
and start to use it when they perceive it to be useful and when they feel personally involved
with computers. As the extent of use increases, users start to become dependent on computers.
Thus when the acceptance and dependence on computers increase, there will be more and more
demands for PCs [20]. By now the level of acceptance and dependence on computers in Ethiopia
is low; but present realties indicate both the acceptance and dependence on computers will grow
very fast. In the near future, not only will computers be important at the offices but also in the
households. Individuals, especially in the middle- and high- income group of the society, will
have a PC for personal uses as is the case now in the developed countries.
Table 4.12 Projected Demand for Personal computers
Year Number of PCs
2002 25,000
2003 37,500
2004 56,250
2005 84,375
2006 126,562
42 | P a g e
5.3. Planned Marketing and Product Mix Assessment
The term “Marketing Mix” refers to a combination of many elements that a company uses to
market its product, as there is much more to marketing than just advertising. It essentially looks
at everything PLC can do to ensure its success in marketing the electrical product. The
marketing mix is designated by the common phrase penned by Jerome McCarthy as, “The 4 P’s
of Marketing.” The 4 main “P’s” are Product, Price, Place, and Promotion. They are the
foundation to the marketing mix. However, in this day and age the marketing mix has extended
to 3 more P’s. They are People, Process, and Physical Evidence (including Packaging).
Positioning, this is also sometimes known as one of the P’s in the marketing mix.
Anytime a decision is made to make a change with one of the “P’s”, it also makes an impact on
decisions in other areas. For instance, a change in the “Price” of a product, such as lowering the
price, could impact the “Place” or distribution area as it requires increased product shipments to
retail stores. This is why it is extremely important for the marketing department to meet with
other departments to discuss any possible ramifications, and to make sure everyone is on the
same page.
While these four factors are important individually, their real significance lies in the mix, the
unique way they are combined into a careful plan or strategy. The combination of these four
factors is the foundation of this, as well as any marketing plan.
The product mix of the proposed plant is determined considering the following factors:
 The availability of markets in the assembled Computer demand projection
 Analyzing the gap in capacity of the existing local capacity in delivering the products
 Considering area of specialization starting from establishment to more years to come
43 | P a g e
5.4 Planned Product Mix Production Plan
The proposed plant product mix is calculated assuming on average 75% of the proposed plant
capacity is utilized (conservative assumption), and the resulting projected product mix and is
indicated on the following table:
5.5 Market and Marketing Arrangement
The marketing of product is held at the different places according to the agreement of the
producer and buyer as well as the agent and /whole seller.
There are also order base and sub-contract agreement among the producers when one of the
factory win the bid of supplying and get in short of capacity to supply within the given frame of
time. Then the factories get sub-contract with other to supply parts of the required amount.
According to the observation in the survey, the lion share of the sale held at the get of the factory
and when the factory get contract or sub contract from some companies they may transport the
products to the get of the buyer by their own transportation. When the producers deliver the
product to the wholesaler/agent in different locations they will add the transportation cost on the
selling price of the product.
44 | P a g e
5.5.1 Marketing Channel
Evaluator sells market may pass different stages before reaching to the consumers which is
depend on the agreement of the producer and buyer. Accordingly, the following diagram will
clearly show the channel of distribution.
Order/ consumer
Factory/Producer Sub-contractor Consumer
Whole Seller/Agent
Consumer
6. Plant Capacity and Production Program

6.1. Plant Capacity and Production Program
Taking into consideration only to cover about 15% of the demand gap for the year 2022, the
capacity of the assembly plant is to assemble 45 sets of Computer per annum. The plant
operation is on the basis of 8 working hours per day and 300 days per year. The working days are
set by excluding 13 holidays and 52 Sundays per annum and assuming that maintenance & repair
of machinery will be carried out during off working hours.
7. Material and Inputs
7.1. Raw and Auxiliary Materials
The total cost of raw materials/ components at full capacity operation is estimated at Birr 42
million. The list of raw materials/ components required and the corresponding cost is shown in
below table.
The major raw material required for manufacturing of computer and monitor cases, keyboard, speaker case,
and mouse case is a plastic polymer known as ABS (Acrylo Butadiene Styrene). ABS is an engineering
plastic polymer available from the petrochemical processing industries. The current price of ABS is in the
order of US$ 850 per to
S Sub-assembly Qty Unit cost Total cost

.
N
45 | P a g e
1. Motherboard 17,000 650 11,050,000
2. Processor (1.1 to 1.7GHz) 17,000 1080 18,360,000
3. VGA 17,000 420 7,140,000
4. Floppy disk drive 17,000 180 3,060,000
5. Hard disk drive (20-60GB) 17,000 1300 22,100,000
6. CD-Rom drive 17,000 300 5,100,000
7. Memory modules (128-256 MB) 17,000 1020 17,340,000
8. Data bus 17,000 60 1,020,000
9. Add-in boards (multi media + 17,000
modem) 1440 24,480,000
1 Power supply unit, 300 watt 17,000 540 9,180,000
0.
1 I/O interface (ports) 17,000set 90 1,530,000
1.
1 CRT tubes and display equipment for 17,000
2.
15" color monitor 2160 36,720,000
1 Key board circuit 17,000 60 1,020,000
3.
Other accessories* Lot - 2,000,000
Total 174,220,000
7.2. Utilities
Electricity and water are inputs required for the envisaged plant. Annual requirements of
electricity and water at full production capacity are estimated to be 1,000,000 kWh and 150m 3,
respectively. At the unit rate of Birr 0.8667 and 10/ m3 for electricity and water, respectively, the
annual requirement of utilities is estimated to be Birr 868,200.00
8. Technology and Engineering
8.1 Technology
8.1.1 Production Process
The major parts of the processes are manufacturing of cage, hoist wag, tractor machines. The
cage has three major parts. These are the wall, frame and safety of the car. The wall of the car is
manufactured by shearing, bending, drilling of shape steel. After successive processes of
machining, the frame of the car is prepared from steel plate. The car frame and the wall together
with the safety of car will be welded together to complete the cage assembly.
46 | P a g e
This part includes the rail and wire rope. The rail is manufactured through a different machining
process of shape steel. The wire rope will be supplied as the height of the building.
The traction machine consists of worm gear assembly and motor. The worm gear and the motor
will be assembled & installed in the beam. After assembling together these parts the controlling
system, indicator & the operating system will be fitted to complete the process.
8.2 Engineering
8.2.1. Machinery and Equipment (Corrugated Iron Sheet)
The machineries needed for Preparation corrugated iron sheet will import and installed by the project
promoter. The main machinery is semi-automatic cut to length machine which is used to cut GI/CRCA
sheet and corrugation machine.
The total cost of machinery and equipment is estimated at Birr 51.88 million, is required in
foreign currency. The following table shows the list of machinery and equipment required by the
envisaged plant.
List of Machinery and Equipment

S/N Description Qty. Total cost in Birr
1 Milling machine 1 23,100,000
2 Drilling & tapping m/c 1 11,845,020
3 Bending machine 1 90,000
4 Shearing machine 1 12,800,000
5 Press 1 2,350,000
6 Boring machine 1 900,000
7 Welding machine 1 280,000
8 Grinding machine 1 430,000
9 Others Req. 90,000
Total 8
8.3 Land, Building and Civil Works

The total land required by the project is about 10,000 m2 of which total built-up of the project is
7,500 square meters; 4,000 square meters will be used for warehouse, 2,500 m 2 will be used for
production facility, 500m2 for product store and 500m2 will be used for office building. The
remaining space used for open space i.e. green area. Total cost of building is estimated to be Birr
51,000,000
No Description Unit Qty Rate Amount
1 Site clearing and leveling M2 10,000 1500 15,000,000.00

Factory Buildings M2 4533 2800 12693333.00
47 | P a g e
Office building M2 300 2800 500,000.00
Raw Material, Finished Product & M2 3833 2800 500,000.00
show room/ rig Metal/
Guard house shower and Toilet M2 67 1500 100,000.00
Other supportive functions like M2 1267 100,000.00
parking area internal roads
greenery area etc.
Fencing 250,000.00
Total 51,000,000
9. Human Resource and Training Requirement

9.1 The management team
The management team of the project will have its own employed manager, supported
with the necessary department including administration and finance head, marketing
head, technical head and procurement head. An expected qualification and experience
of project executive and middle level managers will be tabulate here under:
No. Position qualification Related Reported

Experience
1 Employed factory BA in Mechanical 8 years GM of the
manager /process Engineering company
and MBA
2 Administration BA in accounting or 8 years The factory
and finance Business Manager Manager
Manager
3 Marketing BA in Marketing or 8 years The factory
Manager Economics Manager
4 Production BA in Mechanical 8 years The factory
Manager Engineering Manager
Other supporting staffs of each type of profession are assumed to be recruited to run
the project smoothly.
9.2. Organization
The Organizational structure of the company is illustrated here under:
General Manager
Factory Manager
48 | P a g e
Production Administration Marketing
Manager and Finance Manager
Manger
9.3 Human Resource
As per the presented feasibility study, the total manpower requirement of the project is 225
including top management. Twenty of the employee will be assigned in operation outside of the
production unit. The remaining 200 employees however will be assigned in the production unit.
Detail of the appraised manpower requirement with respective salary for the project is tabulated
here below:
Table3: Manpower Requirement and Their Annual Salary Cost.

No Job Position Qty Monthly salary (Birr) Annual Salary (Birr)
1 Plant Manager 1 8,000 96,000
2 Secretary 1 3,500 42,000
3 Production and Technical head 1 6,500 78,000
4 Commercial head 1 6,500 78,000
5 Finance and administration head 1 6,500 78,000
6 Personnel 1 5,500 66,000
7 Accountant 3 3,500 126,000
8 Cashier 2 2,500 60,000
9 Sales Person 4 4,000 192,000
10 Purchaser 5 4,000 240,000
11 Store Keeper 4 4,000 192,000
12 Quality Controller 5 3,000 180,000
13 Shift Leader 8 3,000 288,000
14 Operator 12 3,000 432,000
15 Assistance Operation 22 3,000 792,000
16 Laborer 106 1,500 1,908,000
17 Mechanic 12 3,200 460,800
18 Electricians 8 3,200 307,200
19 Clerk 14 2,500 420,000
20 General Services 6 2,000 144,000
21 Guard 8 1,500 144,000
Sub Total 225 6,324,000
Workers Benefits = 5% Basic salary 316,200
Total Cost 6,640,200
49 | P a g e
9.4. Training Requirement
Imparting skill both on the supervisor and the operators who will be directly involved in the
metal production is an essential task. Thus, on-job-training by the machinery supplier for about
two weeks should be given locally. The training cost is estimated to be Birr 100,000.
10. Financial Analysis

1. Project life: 15 years
2. Working hour per shift 8
3. Number of shift 1
4. Working day per year 300 day
Cost of capital: the cost of capital is assumed to be the prevailing lending interest rate, i.e. 11.5%.
5. Important Schedules
 Grace period- six months after disbursement of the loan
6. Depreciation and amortization rates applied are:
 Building and Civil Works 5%
 Machinery & equipment 10%
 Equipment and Furniture 10%
 Pre-operating costs 20%
7. Financing Structure
The total investment capital of the project is estimated at birr 200,000,000 of which birr
140,000,000 is for fixed investment items while the remaining balance of birr 60,000,000will be
initial working capital. The details are given below:
50 | P a g e
Investment Capital
Item No. Description Amount (Birr)
1 Building and construction 51,000,000
2 Machinery and equipment’s 71,000,000
3 Vehicle 4,950,000.00
4 Installation cost 1,766,001.60
5 Depreciation cost 1,763,334.33
Sub total 0
Initial working capital 40,000,000
Contingency 20,000,000
Grand total 200,000,000.00
8. Revenue projection:
The machine will be assembly of 45 Computer at its full capacity and it generates total revenue of Birr
158,500,000 per the production schedule, we assume it sold 75% of its full capacity and to increase by
10% per annum until attainable capacity of 85% is reached. The Selling price of one Computer is
assumed to be Birr 1.6 million.
10. Wages and salaries:
The wage and salary expenses will estimate to be 6,640,200 per annum and assumed to increase by 10%
per year.
11. Utility:
Electricity and water are inputs required for the envisaged plant. Annual requirements of
electricity and water at full production capacity are estimated to be 1,000,000 kWh and 150m 3,
respectively. At the unit rate of Birr 0.8667 and 10/ m3 for electricity and water, respectively, the
annual requirement of utilities is estimated to be Birr 868,200.00.
12. It is assumed that annual office supplies is estimated Birr 160,000 per year
13. Repair and maintenance:
Annual repair and maintenance cost is assumed to be 0.1% of the total fixed asset of building and
machinery
14. Insurance:
Insurance expense is assumed to be 0.1% of the value of the building and machinery per annum.
15. Taxes: it is assumed to be 30%.
10.1 FINANCIAL PROJECTIONS

Projected Financial Statement
Description/Item Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Sales Revenue 54,000,00 61,200,00 72,000,00 72,000,00 72,000,000
0 0 0 0
Less variable costs 31,500,00 34,650,00 42,000,00 42,000,00 42,000,000
51 | P a g e
0 0 0 0
Gross profit 22,500,00 26,550,00 30,000,00 30,000,00 30,000,000
0 0 0 0
Utilities 651,150 738,225 868,500 868,500 868,500
Maintenance and repair 245,000 315,000 700,000 700,000 700,000
Salary 6,640,200 6,640,200 6,640,200 6,640,200 6,640,200
Administration Costs 297,500 552,500 850,000 850,000 850,000
Cost of marketing and 450,000 600,000 1,000,000 1,000,000 1,000,000
distribution
Total Operating Costs 8,283,850 8,845,925 10,058,70 10,058,70 10,058,700
0 0
Depreciation 5,351,721 5,351,721 5,351,721 5,351,721 5,351,721
Cost of Finance 5,531,212 5,079,782 4,574,945 4,010,382 3,379,029
Profit before tax 3,333,217 7,272,572 10,014,63 10,579,19 11,210,550
4 7
Tax expense 3,173,759 3,363,165
Profit after tax 3,333,217 7,272,572 10,014,63 7,405,438 7,847,385
4
Projected Cash flow Statement

Particular Year0 Year1 Year 2 Year3 Year4 Year5
Net Income 3,333,217 7,272,572 10,014,634 7,405,438 7,847,385
Add: Depreciation 5,351,721 5,351,721 5,351,721 5,351,721 5,351,721
8,684,938 12,624,29 15,366,355 12,757,159 13,199,106
Cash flow after adjustment
3
14,000,00 14,000,00 14,000,000 14,000,000 14,000,000
Initial Investment 200,000,000
0 0
14,000,00 14,000,00 14,000,000 14,000,000 14,000,000
Loan Repayment
0 0
Cash flow from operating 5,184,938 9,124,293 11,866,355 9,257,159 9,699,106

activities
Cash balance at the end of 3,333,217 7,272,572 10,014,634 7,405,438 7,847,385
(200,000,000)
the year
Discount Rate 12%
NPV 74,906,357.97
IRR 49%
Revenue Generation
The project will earn gross revenue of Birr 22million during the first year of operation and it will grow up
to 30million in the fifth year and thereafter.
Profitability
The project will generate net profit throughout its life and the net income ranges from 3.3 million in the
first year of operation to Birr 7.8milion in the fifth year and thereafter.
52 | P a g e
Cash-Flow Statement
The project will generate a cumulative cash flow of Birr 45million throughout its life including recovery
of initial working capital and scarp value.
NPV and IRR
The projected cash flow discounted at 12% costs of capital shows that NPV of Birr 74.9 million
and IRR of 49% which is much higher than the cost of capital (prevailing interest rate).
Sensitivity Analysis
Sensitivity analysis is made assuming that increment of investment costs by 10%, increment of
operating costs by 10% and decrease of total revenue by 10%. Under each assumption NPV is
positive and IRR is above the cost of capital (prevailing lending interest rate).
11. Economic and Social Benefits
The project can create employment for 225 persons. In addition to supply of the domestic
needs, the project will generate Birr 6.5 million in terms of tax revenue 1 st year. The project has
a forward linkage effect with food industries.
12. Conclusion and recommendation
12.1 Conclusion
Both the current economic and political situations of the country are in favor of
industrial development.
The increase in productivity of agricultural as well as industrial sectors, which has a
multiplier impact towards the increase in people’s life standard, also creates ample
market opportunity for the proposed business. Indeed, this study reveals that there exists
and will persist sufficient Demand-Supply gap in the market for Computer.
The company has anticipated hiring well educated manpower upon inauguration of the
proposed project.
The company has proposed to import the more modernized machineries from abroad.
The company’s projected financial statements reveal that it will be liquid and profitable
over the periods under review. Besides, it is anticipated to pay back its investment cost
within five years period, which is relatively short.
12.2 Recommendation
In view of the foregoing remarks and viability indicators, the proposed Computer assembly
project is feasible in both financial and technical to undertake.
53 | P a g e

Feasibility Study On Elevetor Ass

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PROJECT PROPOSAL

PROJECT TO BE IMPLEMENTED IN OROMIA

REGIONAL STATE, OROMIA SPECIAL ZONE

SURROUNDING FINFINE, SEBETA TOWN

6 Premises Required 10,000m2

10 Market Share 50 % of the product supplied to Domestic market and the

The promoter's manufacturing process covers assembly, software installation, functional

 Facilities are organized around specific activities or processes

 General purpose equipment and skilled personnel

 High degree of product flexibility

 Typically high costs and low equipment utilization

The Company’s Process Strategy is “Mass customization” that provides a

 The rapid, low-cost production of goods and service to satisfy increasingly

 Sell custom-built PCs directly to consumer

 Lean production processes and good product design allow responsiveness

 Integrate the Web into every aspect of its business

 Focus research on software designed to make installation and configuration

 Process streamlining: Dell built a significant advantage in the

 Product diversification: Dell has used a diversification strategy to enable

2.1 Country Profile

Demographics: distribution of the population according to age (CIA World Fact book,

2.2 Economic Policy Profile

Fig 2.2: Economic Growth 2010/11-2014/15

Source: NBE, MoFEC, 2014/15

Source: African Review of Economics and Finance, “Ethiopia’s Investment Prospects: A

2.3 Background Information of the Company

2.4 Brief of this Project

2.5 Company’s Objectives, Mission, Vision, Motto

3.1. PROCEDURE DEFINITION

The design of a factory will depend on the products to be produced; it is

1. THE ASSEMBLY PROCESS

4.1.1. Parallel Assembly

4.1.2. Serial Assembly

3. TOOLS FOR PC ASSEMBLY

 Canned compressed air

7.2. POWER SUPPLY UNITS

7.3. CENTRAL PROCESSING UNIT and MOTHERBOARD

o Cache (Built in memory)

Standard Motherboard Features

o PCI expansion card slots

o AGP/PCI express expansion slots (for video adapter)

o Hard drive/optical drive conne ctors (IDE/SATA)

o Floppy drive connector

o Power conne ctors

o Conne ctors for CPU and case fans

Other optional motherboard features include:

o On-board network adapter

o Additional USB ports

o Fire wire ports

7.5. HARD DRIVE

i. Double-check that the CPU and motherboard are compatible:

iv. Store the motherboard in the original packaging:

 Each component that will be used in building the PC is tested separately

Place SMT components

2 List and cost of machinery and equipment for PC assembly plant.

4.1.2. Production Process

Medium Throughput Manual Assembly

5. Major Facts for the Establishment of Computer Assembly Factory

 Support through Policy and Incentives

Inadequate Infrastructure: Transpiration facilities in from port to producing areas especially at

Finance Availability: Lack of finance, particularly long-term finance, is a widespread constraint

Expected Key Risk Factor

Expected Contingence Plan for Risk Management