BAHIR DAR UNIVERISITY

ETHIOPIAN INSTITUTE OF TEXTILE

AND
FASHION TECHNOLOGY
/EiTEX/

DEPARTEMENT OF LEATHER ENGINEERING

HOST COMPANY:
ELICO-UNIVERSAL
LEATHER PRODUCTS FACTORY

INTRODUCING NEW WAY OF LEATHER WASTAGE

TITTLE:
MANAGEMENT THROUGH USING LEATHER WASTAGE FOR
FURTHER PRODCTION

BY REDWAN ABDELLA
ID NO: BDU0601391UR

ACADAMIC ADVISOR: MR. GEBREHIWOT A.

COMPANY ADVISOR: MR. ABIYOT A.

JUNE, 2017 GC
 Internship Report

DECLARATION

I hereby certify that this material, which I now submit as an internship report, which is
conducted at ELICO-Universal Leather Products Factory during my internship period
February-June 2017G.C under the guidance of Mr. Gebrehiwot A. (Academic
Advisor) and Mr. Abiyot A. (Company advisors), is entirely my own work and has not
been taken from the work of others save and to the extent that such work has been cited
and acknowledged within the text of my work. And compiled according to the
internship report writing Guideline given by the Institute-Industry Linkage office of
the Institute.

As the student’s academic advisor, I certify that the work is original and compiled
according to the operation manual as far as my knowledge is concerned.

Mr. Gebrehiwot A.

(Name of Academic Advisor) Date Signature

Redwan Abdella

(Name of Student) Date Signature

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Acknowledgement

I would like to express my sincere thanks and gratitude to Mr. Abiyot A. and Mr.
Gebrehiwot A. for their supervision, encouragement, and valuable suggestions
throughout the period of this study. Mr. Bistrat everything you said to me was valuable
and I am glad to know you. Mrs. Misir, yours advises were very encouraging. Mr.
Telahun and Mr. Eskender, you were preparing me for better thanks a lot. I am grateful
to many people but I cannot mention all of them just thanks for making our spent at
universal company fruitful. Mam how can I forget your involvement in my every life,
your encouragements were irreplaceable.

Finally, may all praise be to God Almighty, the Creator and Sustainer of the Worlds,
who is Perfect in Wisdom and Knowledge for taking care of my needs and enabling
me to complete this work.

Redwan Abdella

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Executive summery

For every leather products manufacturing company the main raw material is the leather
itself, which covers almost up to 80% raw material cost. So, wastage of leather means
‘wastage of capital of the company’ which decreases the profit of the company
significantly. The ULPF has encountered 51237.2 ft2 softy box, 2590 ft2 plain box, and
5518.1 ft2 sheep garment wastage from only seven models production in the period of
2016/17 July-March and the company has lost totally 1,301,281.2 birr only from those
leather amounts. ULPF can possibly sale 50kg of sheep garment in 600birr as a leather
scrap but in this project, the company can gain a net profit of 241,750birr from 50kg
of sheep garment scrap only.

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List of acronyms
BM – Bookmarker
CO – Cable Organizer
EC – Eye Glass Case
ER – Earring
KH – Key Holder
NK – Necklace
OA – Office Accessories
ULPF – Universal Leather Products Factory

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List of Table
Table 1 Machinery infrastructures available in ULPF ................................................. 11
Table 2 Product variety and styles with pictures ......................................................... 13
Table 3 07/06/2009 E.C auction items list. .................................................................. 15
Table 4 07/06/2009 E.C auction amounts of leather scrap of ULPF ........................... 22
Table 5 wastage of softy box, plain box, and sheep garment from seven models in the
period of 2016/17 July-March. .................................................................................... 25
Table 6 07/06/2009 E.C auction price of leather wastes of ULPF .............................. 26
Table 7 sketch and illustration of developed necklaces ............................................... 30
Table 8 specification of developed necklaces .............................................................. 31
Table 9 sketch and illustration of developed necklaces ............................................... 32
Table 10 specification of developed earrings ............................................................. 33
Table 11 sketch and illustration of developed cable organizers .................................. 34
Table 12 specification of developed earrings .............................................................. 35
Table 13 sketch and illustration of developed key holders .......................................... 36
Table 14 specifications of developed earrings ............................................................. 37
Table 15 sketch and illustration of other developed products ..................................... 38
Table 16 specification of other developed products .................................................... 39
Table 17 information of shops on market response analysis ....................................... 40
Table 18 estimated price of developed products. ......................................................... 41
Table 19 Cost sheet of necklace model NK001 ........................................................... 42
Table 20 Cost sheet of necklace model NK003 ........................................................... 43
Table 21 Cost sheet of earring model ER001 .............................................................. 44
Table 22 Cost sheet of earring model ER003 .............................................................. 45

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List of Figure
Figure 1 ULPF .............................................................................................................. 1
Figure 2 Organizational structure of ULPF .................................................................. 2
Figure 3 Raw material receiving and selection process ................................................ 5
Figure 4 Production order flow chart ............................................................................ 6
Figure 5 Bench preparation flow chart ......................................................................... 7
Figure 6 Delivery of finished product process flow chart ............................................ 8
Figure 7 collected leather scraps ................................................................................. 15
Figure 8 ULPF leather scraps handling flow chart ..................................................... 17
Figure 9 Wastage Allowance ...................................................................................... 20
Figure 10 % of cutting wastage allowances per net pattern size ................................ 21
Figure 11 % of buyer vs visitor’s ratio ....................................................................... 28

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Table of Contents
DECLARATION ........................................................................................................... I
Acknowledgement ........................................................................................................ II
Executive summery ..................................................................................................... III
List of acronyms ..........................................................................................................IV
List of Table.................................................................................................................. V
List of Figure ...............................................................................................................VI
CHAPTER ONE ............................................................................................................ 1
1. Company profile ........................................................................................................ 1
1.1 Background of ULPF ........................................................................................... 1
1.1.2 Vision ........................................................................................................... 1
1.1.3 Mission ......................................................................................................... 1
1.1.4 Organizational structure of ULPF ................................................................ 2
1.1.5 Administration and Human resources management division ...................... 3
1.1.6 Design and quality control division ............................................................. 3
1.1.7 Production and technic division ................................................................... 3
1.1.8 Sales and purchasing division ...................................................................... 3
1.1.9 Finance division ........................................................................................... 4
1.2 Overall work or process flow of the company ..................................................... 5
1.2.1 Raw material receiving and selection process ............................................. 5
1.2.2 Production order flow chart ......................................................................... 6
1.2.3 Bench preparation flow chart ....................................................................... 7
1.2.4 Delivery of finished product process flow chart .......................................... 8
1.3 Raw materials, accessories and other material input of ULPF ............................ 9
1.3.1 Source of raw material and their main supplier ........................................... 9
1.3.1.1 Main supplier of ULPF ...................................................................... 10
1.3.1.2 Customers and end users of ULPF ..................................................... 10
1.4 Machinery infrastructures available in ULPF .................................................... 11
1.5 Main product types of ULPF .............................................................................. 12
1.5.1 Product variety and styles with pictures .................................................... 12
CHAPTER TWO ......................................................................................................... 14
2. IMPROVING THE PROFIT OF UNIVERSAL LEATHER PRODUCTS
FACTORY BY USING LEATHER WASTAGE FOR FURTHER LEATHER
ACCESSORIES AND JEWELLERIES PRODCTION .............................................. 14
2.1 Introduction ........................................................................................................ 14

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2.2 Problem Statement ............................................................................................. 14

2.3 Objective of the project ...................................................................................... 16
2.3.1 General objective ....................................................................................... 16
2.3.2 Specific objective ....................................................................................... 16
2.4 Scope of the project ............................................................................................ 16
2.5 Limitation of the project ..................................................................................... 16
2.6 ULPF leather scraps handling flow chart ........................................................... 17
2.7 Literature review ................................................................................................ 18
2.8 Methodology ...................................................................................................... 20
2.8.1 Data Collection .......................................................................................... 20
2.8.1.1 Wastage Allowance............................................................................ 20
2.8.1.2 Collected Amount of Leather Scraps ................................................. 21
2.9 Data Analysis ..................................................................................................... 22
2.9.1 Leather Wastage Generated ....................................................................... 22
2.9.2 Loss from Leather Wastage ....................................................................... 26
2.10 Result................................................................................................................ 27
2.11 Solution ............................................................................................................ 27
2.11.1 Resources of the company ....................................................................... 27
2.11.2 Developed products ................................................................................. 29
2.11.2.1 Necklaces ......................................................................................... 29
2.11.2.2 Earrings ............................................................................................ 31
2.11.2.3 Cable organizers............................................................................... 33
2.11.2.4 Key holders ...................................................................................... 35
2.11.2.5 Office accessories and Others .......................................................... 37
2.11.3 Market Response ...................................................................................... 39
2.11.4 Cost sheets of jewelries on market response analysis .............................. 42
Cost sheet of necklace model NK001 ............................................................ 42
Cost sheet of necklace model NK003 ............................................................ 43
Cost sheet of earring model ER001 ............................................................... 44
Cost sheet of earring model ER003 ............................................................... 45
2.12 Conclusion........................................................................................................ 46
2.13 Recommendation of the project ....................................................................... 47
CHAPTER THREE ..................................................................................................... 48
3. Overall benefit of the internship .............................................................................. 48

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3.1 Benefits gained in terms of improving practical skill ........................................ 48

3.2 Benefits gained in terms of up grading theoretical knowledge .......................... 48
3.3 Benefits in terms of interpersonal communication skill..................................... 48
3.4 Benefits gained in terms of improving team playing skill ................................. 49
3.5 Benefits gained in terms of improving leadership ............................................. 49
3.6 Benefits gained in terms of understanding about work ethics and related
issues ........................................................................................................................ 49
3.7 Benefits gained in terms of entrepreneurship skill ............................................. 50
REFERENCES ............................................................................................................ 51

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CHAPTER ONE
1. Company profilei
1.1 Background of ULPF

Figure 1 ULPF
Universal leather product factory is established by ex-government/state in July 1984, to
produce every sort of leather article including leather garments. The factory is located
in the sector where different factories are available. The area is sometimes called
industrial zone. As the exact site where the factory located Addis Ababa, Ethiopia
8.949783 lat./38.762499 long. In Nazareth road, near to saris.
1.1.2 Vision
The vision of ELICO is “to become world class and branded quality name in finished
leather and leather products.”
1.1.3 Mission
The mission of ELICO is “production and marketing of environmentally sustainable
finished leather and leather products for export and local markets to satisfy customers”.

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1.1.4 Organizational structure of ULPF

Figure 2 Organizational structure of ULPF

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1.1.5 Administration and Human resources management division

 The main job of the division is organized, corporate, inspected and control
employment, training and transfer of workers and other management and
furtherance.
 Check those things according to collective agreement, labor affair proclamation
and others company rules and regulations.
 To check and keep the benefits and services of employees.

 Support the company by controlling electricity, water supply, telephone

services, insurance, recorded and foldaway, security and cleaning.
 Check and control the company vehicle’s handling and also giving services.

1.1.6 Design and quality control division

 To assure the quality of raw material and check the production process
according to specification.
 Assure the design and patterns are prepared according to the trend the demand
need.

 Control the design of the products competitiveness to other company product

design.
 Before the design are done collect enough market data.

 Check the quality of the sample before goes to the market.

1.1.7 Production and technic division

 Developed the work plan which can be done by the main division.

 Corporate with other division, guide, control and produce the factory
output/product according to the schedule and the standard quality.
 Allow the machinery and tools to be maintained.

 Do research on productivity and minimization of raw material and present to

unit manager.
 Follow the modern technology and increase creativity, motivate worker’s
creativity and working skills

1.1.8 Sales and purchasing division

 Organize and control sales and purchasing.

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 Assure the purchasing based on type and volume.

 Assure the sales according to the rule.

 Cleaning and settling purchasing documents.

 Cleaning and settling sales documents.

 Prepare the main division budget.

1.1.9 Finance division

 The main job of the finance department is control manage and corporate all the
company finical work, budget, finical analysis and cost determination.
 Plan the expenditure and income of the company; when its approved the
department will go with an action.
 Control all payment costs and incoming sales of the company.

 Control the cost determinations will do as planed with expected value.

 Preparing annual, half year and quarter year finical report.

 Keep it safe and protect all finical activity’s and other company’s secrets that
done by working condition.
 Control all finical rules and regulations of the company.

 And determination of costs for every product with a single piece.

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1.2 Overall work or process flow of the company

1.2.1 Raw material receiving and selection process

Start

Accepted order

Store requisition

Receiving raw material

Raw material selection, leather and other accessories inspection

Non -conformed
No
product return to Does it confirm?
store
Yes

Transform to production flow

End

Figure 3 Raw material receiving and selection process

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1.2.2 Production order flow chart

Start
Order from design or
direct
Production order

Order receiving

Order review

No
Return order Is the process capable?

Yes

Accept order

End

Figure 4 Production order flow chart

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1.2.3 Bench preparation flow chart

Start
Input components and
leather
Tracing

Folding

Hammering

Inspection and testing

Measurement process
Return for rework checking for
No conformance

Yes and trimming

Pass to stitching

End

Figure 5 Bench preparation flow chart

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1.2.4 Delivery of finished product process flow chart

Start
Order from design or direct

Checking and counting based on production order sheet

Complete the counting based on production order sheet

Delivery to store

Collect the document (finished product receiving voucher)

File report

End

Figure 6 Delivery of finished product process flow chart

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1.3 Raw materials, accessories and other material input of ULPF

1.3.1 Source of raw material and their main supplier
The company used various raw material and accessories for the production
purpose. The major raw material is leather, lining and reinforcement foam.

Raw materials

 Different kinds of leather such as, sheep, hide etc.

 Lining

 Reinforcement foam

 Gray board for model 74 brief case model

 Shank boards

 Stiffener

Accessories

 Zipper

 Puller

 Eyelet ring

 Ring

 D-ring

 Rivet

 Adhesive glue

 Key chain holder

 Buckles

 Adhesive tape

 Button

 Plastic hook

 Snap button

 Hinge etc...

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1.3.1.1 Main supplier of ULPF

Leather

 Awash tannery

 Abyssinia tannery

Accessories

 JM corporation, Korea

1.3.1.2 Customers and end users of ULPF

 Government and non-governmental organization

 Private companies

 Individual customers Export

 USA (export wallet only)

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1.4 Machinery infrastructures available in ULPF

M/c type Model Workin Qt Machine feature Machine picture
g speed y.
Stitching Adler767,1 2400 Suit case, bag, tents, seats, all
M/c 69,269,467 S.P.M kinds of leather material
Adler generally all thick material

Skiving 105GLTA 20m per 2 According to the thickness of

M/c ,AT13- minute material to skive the piece
591,217,02 some adjustment is done then
17, 1069 the machine can do various
work.

Splitting GL50M,M 5 to 30 m 2 The rollers forward the

m/c od pm material against the edge of
141/30297 the knife the lower roller is
,06122/EA pressed by spring force while
3 the upper roller can be set in
accordance with splitting
thickness.
Stitching Sun star 2000sp Men’s and women’s students
m/c, Sun 340 m and children’s suit cases,
Star BL123B bags, tents, seats and all kinds
L,DPK-3 of leather materials generally
all thick materials.

Hydrauli 300MTV 1500rp 1 This m/c is working with the

c atom S-358 m photoelectric barrier. The
cutting equipment constructed to the
m/c most up to date technological
standards.
Table 1 Machinery infrastructures available in ULPF

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1.5 Main product types of ULPF

 Ladies hand bag (LHB)

 Leather executive case (LEC)

 Leather document case (LDC)

 Leather luggage (LLC)

 Leather school bag (LSB)

 Small leather articles (SLA)

 Industrial leather articles (ILA)

 Leather small sit/Puff/Cushion

1.5.1 Product variety and styles with pictures

LLG
059

LLG 051 LLG 66

LLG LLG LLG ELICO

074 075

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LHB 559 LHB 566 LHB 579

LHB 568 LHB 584

LHB 604

LB 165B MCS 38A

LBC 110

LWG 03C
LMCS 28 MJS 111

Table 2 Product variety and styles with pictures

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CHAPTER TWO
2. IMPROVING THE PROFIT OF UNIVERSAL LEATHER
PRODUCTS FACTORY BY USING LEATHER WASTAGE
FOR FURTHER LEATHER ACCESSORIES AND
JEWELLERIES PRODCTION
2.1 Introduction
For every leather products manufacturing company the main raw material is the leather
itself. Using leather for products manufacturing is very advantageous as leather is
resistive, flexible, and adaptable to a wide variety of applicationii. Any manufacturing
company leaves a waste iii , and the same is true for leather products manufacturing
company. Likewise, when leather products manufacturing company records a leather
wastage it is recording a wastage of a raw material having the same property with the
leather used for base production.

In Universal Leather Products Factory leather wastage is recorded starting from bulky
products like jacket cutting section to small accessories like wallet cutting section from
both garment and articles production halls. 7000 Kg softy box, 2271 Kg plain box, and
558 Kg softy box natural crust are some of the stored leather wastage amounts presented
for auction in 07/06/2009 E.C. A projected conducted from a period of March 2016 to
June 2016 at ULPF by Sinit Teklegiorgis has shown that a company has lost 279,864.2
Birr in 8 months of 2015/16 from sheep garment onlyiv.

This project tries to increase the profit of ULPF by highly minimizing the loss from
leather wastage through using leather wastes for producing simple leather accessories
and jewelries. Beside minimizing loss from leather wastage, those products require low
cost of processing which makes them highly profiting.

2.2 Problem Statement

In leather products manufacturing industry the main raw material which covers more
amount of raw material cost almost up to 80% is the leather itself. So, wastage of leather
means ‘wastage of capital of the company’ which decreases the profit of the company
significantly. It is in fact impossible to completely avoid wastage but it possible to
decrease wastage to maximum level. The same is true for Universal Leathers Company
leather wastage. Leather wastage in this company is sold to small enterprises in auction.
Auction reports recorded in the company shows that the price of leather wastage has
been highly decreasing. In the reports, the previous highest price of sheep garment was
30 birr per Kg but in 14/05/2008 E.C 0.10 birr was presented from participants of the

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auction but it wasn’t sold. Also in 07/06/2009 E.C the maximum price presented was
4.25 birr which was very lowest and the company decided to give the sheep garment
wastes as a gift for small enterprises for free. Softy box was also sold for 0.10 birr per
Kg in 14/05/2008 E.C.v
Not only the price of the leather wastage but also the amount is also another related
problem. The table below shows the amount of leather waste presented in 07/06/2009
E.C auction. N.B the items in the table below are not the hole items in 07/06/2009 E.C
auction but selected only to give evidence.vi

Leather type Amount in Kg

Softy Box 7000
Plain Box 2271
Box Natural Crust 483
Hide Split 667
Softy Box Natural Crust 558
Sheep Garment 476
Total 11455
Table 3 07/06/2009 E.C auction items list.
Most of them are not still sold so they are stored store having additional resource of the
company. As the production quantity of the company increases the loss from leather
wastage will also increases which is a drawback for the company.

Figure 7 collected leather scraps

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2.3 Objective of the project

2.3.1 General objective

The main target of this project is to change the leather wastage of ULPF, which is loss
into a salable simple leather accessories and jewelries, which is profit.

2.3.2 Specific objective

This project, through changing leather wastage to accessories and jewelries aims to
lead to; -

 Using wasted leather for further simple production

 Reduction of the storage cost for the leather waste of the company
 Diversification of product
 Sustainable wastage management

2.4 Scope of the project

This project is carried out at ULPF both at garment and articles halls on the wastes of
sheep garment, softy box, and plain box. And the products developed in this project are
not the complete once rather they are products developed to serve as starting ground for
further improvement and production.

2.5 Limitation of the project

 Almost all accessories I used for jewelry products were not available in the
company so, they were financially costly to afford for they were not sold per
piece. And substituted by other accessories.
 The company receives a raw leather with ft2 and records its waste with Kg which
was difficult to analyze the loss from leather wastage.

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2.6 ULPF leather scraps handling flow chart

Leather scraps
from cutting
section

Customers gift
production

Leather scraps
store

Auction

Figure 8 ULPF leather scraps handling flow chart

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2.7 Literature review

Every manufacturing process leaves waste, but much of this left-behind material can
be put to productive—and profitable—use. Key concepts include:

 The concept of "by-product synergy" consists of taking the waste stream from
one production process and using it to make a new product.
 Productively using waste instead of trashing it can cut costs by reducing
disposal fees and opening up additional revenue streams through by-product
sales.
 The greatest returns are realized when a company widens its scope to think
strategically to consider waste processing as a joint-production process.
 In some cases, maximizing profit might mean, paradoxically, creating more
waste.

In the simplest analysis, productively using waste instead of trashing it can cut costs by
reducing disposal fees. Some companies have taken that a step further by opening up
additional revenue streams through by-product sales. But the greatest returns are
realized when a company widens its scope to think strategically to consider it as a joint
production process. where the by-product is of low value, a company might maximize
profit by only turning some of the waste into a new by-product, while still disposing of
some of it through traditional means. as the value of the by-product increases, it might
make more sense to actually increase the production of your primary product in order
to increase more "waste." In that case, even though profits might fall for your primary
product as the market becomes saturated, the increased profits from the secondary
product would more than compensate for the loss.vii

The amount of generated leather waste can be classified in two categories:

 high and constant amount;

 medium-small, random amount.

The use of leather waste as raw material for making products or accessories has
attracted a real interest from private entrepreneurs, artists, designers, hand makers or
folk. The selling mode is different specialty stores, online shopping, direct trade in fairs

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and exhibitions, and trade on the basis of a contract made between the manufacturer of
accessories or ornaments and their users.

In the past two years, the market of handmade products made out of leather and leather
waste has increased so that today there are hundreds of artisans who live only from this
activity that brings a steady income of several thousand lei per month. For the secondary
entrepreneurs is required knowledge about leather types and quantities of leather waste
available according to their needs. The correlation between different types of leather
waste, quantity required, the type of product to be made, its design is a prerequisite for
the efficient use of leather waste and a sustainable management strategy. In the
supplying with leather waste, there must be taken into consideration the following:

 the final product;

 the design of the product that will be produced;
 auxiliary materials (thread, lining, eyelets, snaps, buckles, soles, heels, etc.);
 the required quality and quantity of leather waste;
 technical and technological equipment;
 professional training of the workforce;
 costs (transport, utilities, handling, labor, etc.)viii

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2.8 Methodology
2.8.1 Data Collection

In this project both primary and secondary data are collected. Basically, Observation,
informal interviews, and recorded reports of the company are used.

2.8.1.1 Wastage Allowance

When raw leathers are delivered from raw material store to a cutting department, the
size of a leather to be delivered is calculated not only with a net pattern size but also
with wastage allowance in addition which is given by designing department. Even if
when patterns are having curved shapes, the net pattern size is calculated in regular
shapes like square or rectangle by taking larger lengths of the pattern. The below figure
makes it clear.
Shape variance

Exact pattern size

Calculated net pattern
size

Figure 9 Wastage Allowance

Therefore, leather consumption of a product will be

= Net pattern + Wastage allowanceix

= Exact pattern size + Shape variance + Wastage allowance

Reasons for giving a wastage allowance

 Irregular shape of a leather in nature

 Variance in size of a raw leather
 Difference in cutting efficiency of a cutting operator
 Size and shapes of a pattern

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% OF CUTTING WASTAGE
ALLOWANCES PER NET PATTERN
SIZE
70
60
50
40
30
20
10
0
small articles larger bags garments belts

% of cutting wastage allowances per net pattern size

Figure 10 % of cutting wastage allowances per net pattern size

Those wastage allowances are average acceptable wastage amounts of leather by UPLF.
But still sometimes wastage is generated above those wastage allowances.

 The quality and size of raw leather and

 Cutting efficiency of the operator are main factors.

2.8.1.2 Collected Amount of Leather Scraps

The ULPF presents its leather scraps for sale in auction except leather scraps used for
customer’s gift production, like patterned crocodile. The following table shows leather
scrap and amounts presented for auction in 07/06/2009 E.C. Taking into consideration
that a ULPF has a leather scrap filled m2 leather scrap store.x

Leather type Amount in Kg

Softy Box 7000
Plain Box 2271
Box Natural Crust 483
Hide Split 667
Softy Box Natural Crust 558
Sheep Garment 476

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Total 11455
Table 4 07/06/2009 E.C auction amounts of leather scrap of ULPF

2.9 Data Analysis

2.9.1 Leather Wastage Generated

LLG059 and LLG051B leather luggage bags, LDC030 and LDC06C document cases,
and MCS112 and MJS114 leather jackets are products of ULPF which are produced in
higher quantity in 2016/17 July-March and selected for this analysis of softy box, plain
box, and sheep garment leather types wastage generation of the company respectively.

N.B: Total production quantity used in the analysis below is a total production quantity
of each model in a period of 2016/17 July-March production cycle.xi And consumption
of the model includes wastage allowance of each model by the company.

A. Softy box

Model LLG059

Leather consumption of the model= 19.25 ft2

Wastage allowance= 30%= 5.5 ft2

Total production quantity= 2504

Total average wastage= Total production quantity * Wastage allowance

= 2504 * 5.5 ft2

=
13,772 ft2

Model LLG051B

Leather consumption of the model= 18.05 ft2

Wastage allowance= 30%= 5.4 ft2

Total production quantity= 6938

Total average wastage= Total production quantity * Wastage allowance

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= 6938 * 5.4 ft2

= 37,465.2 ft2

B. Plain box

Model LDC06C

Leather consumption of the model= 7.54 ft2

Wastage allowance= 30%= 2.3 ft2

Total production quantity= 462

Total average wastage= Total production quantity * Wastage allowance

= 462 * 2.3 ft2

= 1062.6 ft2

Model LDC030

Leather consumption of the model= 8.71 ft2

Wastage allowance= 30%= 2.6 ft2

Total production quantity= 344

Total average wastage= Total production quantity * Wastage allowance

= 344 * 2.6 ft2

= 894.4 ft2

C. Sheep garment

Model MJS114

Leather consumption of the model= 30 ft2

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Wastage allowance= 30%= 9 ft2

Total production quantity= 242

Total average wastage= Total production quantity * Wastage allowance

= 242 * 9 ft2

= 2178 ft2

Model MCS38A

Leather consumption of the model= 35.53 ft2

Wastage allowance= 30%= 10.7 ft2

Total production quantity= 163

Total average wastage= Total production quantity * Wastage allowance

= 163 * 10.7 ft2

= 1744.1 ft2

Model MJS122

Leather consumption of the model= 35.1 ft2

Wastage allowance= 30%= 10.5 ft2

Total production quantity= 152

Total average wastage= Total production quantity * Wastage allowance

= 152 * 10.5 ft2

= 1596 ft2

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Generally,

Model Total Leather Gross Final Unit Total Total Total

productio Type Consu Consum wastage Gross Final wastage
n m ption allowance Consum Consum allowanc
Quantity ption (ft2) (ft2) ption (ft2) ption e (ft2)
(ft2) (ft2)
LLG051B 6938 Softy box 12.64 18.05 5.4 87696.32 125230.9 37465.2

LLG059 2504 Softy box 13.75 19.25 5.5 34430 48202 13772

LDC06C 462 Plain box 5.8 7.54 3 2679.6 3483.48 1386

LDC030 344 Plain box 6.1 8.71 3.5 2098.4 2996.24 1204

MJS114 242 Sheep 23 30 9 5566 7260 2178

garment
MCS38A 163 Sheep 24.87 35.53 10.7 4053.81 5791.39 1744.1
garment
MJS112 152 Sheep 24.57 7.54 10.5 3734.64 5335.2 1596
garment
Total softy box 51237.2 ft2
wastage

Total plain box 2590 ft2

wastage

Total sheep 5518.1 ft2

garment
wastage
Table 5 wastage of softy box, plain box, and sheep garment from seven models in the
period of 2016/17 July-March.

The company has encountered 51237.2 ft2 softy box, 2590 ft2 plain box, and 5518.1 ft2
sheep garment wastage from only the above seven models production in the period of
2016/17 July-March.

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2.9.2 Loss from Leather Wastage

The company buys the raw leather with the following price per square fit:xii

Softy box = 21 birr

Plain box = 22.30 birr

Sheep garment = 30 birr

The company sales it collected wastes in auction. The table below shows the latest
selling price of each leather scrap in the latest auction.xiii

Leather type Price

Softy Box 0.10
Plain Box
Sheep Garment 12.05
Table 6 07/06/2009 E.C auction price of leather wastes of ULPF

 Loss from softy box

Wastage loss = wastage in ft2 * price per ft2

= 51237.2 ft2 * 21 birr/ ft2

= 1,075,981.2 birr

 Loss from plain box

Wastage loss = wastage in ft2 * price per ft2

= 2590 ft2 * 22.30 birr/ ft2

= 57,757 birr

 Loss from sheep garment

Wastage loss = wastage in ft2 * price per ft2

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= 5518.1 ft2 * 30 birr/ ft2

= 167,543 birr

 Total = 1,301,281.2 birr

2.10 Result

The above analysis shows that the company has lost totally 1,301,281.2 birr within
nine months from only the mentioned seven models production. In fact, the company
tries to sale those leather scraps with an auction in kg which makes it a very losing. The
price is also very low which is per Kg softy box 0.10 birr and sheep garment 12.05 birr.
As sheep garment is light weight the price is still not that much different than softy box.
It seems that the company is selling those scraps just for wastage disposal and to avoid
a higher collection of waste.

So, this project gives its profiting solution for the loss occurring from leather scrap of
ULPF as follows:

2.11 Solution

This project provides producing simple leather accessories and jewelries as a very
profiting solution based on the following resources of the company. Also in this project,
some products are developed to give a starting ground for further improvement and to
show the demand and salability of those products. Some of the developed products are
grouped and their sketch and illustration is shown with their processing cost.

2.11.1 Resources of the company

 Leather wastage generated

- The company is daily in the process of generating a leather wastage in a

significant amount which can converted in to a salable product for being
profiting output.
- ULPF do not pay additional cost for having main input in this product
processing because it is already paid as input for main production of the
company. It is just like this, the leather wastage of main products of the
company begins to be raw material for accessories and jewelry production.
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 Shop visitors

- The company has its own shop with a large number of visitors but with
decreasing visitor’s buyer’s ratio which implies the number of buyers is
decreasing than visitors.
- From 2013-2016 average number of 18,859 visitors with 10,487 buyers, and
8,372 just visitors (not buying).xiv
- There for this projects is making a way for providing those not buying
visitors a simple accessories and jewelries which can be bought without a
program because they can be sold with simple cost.

% of buyer vs visitors ratio

70

60

50

40

30

20

10

0
2012/13 2013/14 2015 2016

% of buyer vs visitors ratio

Figure 11 % of buyer vs visitor’s ratio

 Local exhibitions

- As it is known in local exhibitions (they can be holiday or else exhibitions)

a number of customers will visit, so providing easy products is demanded.
- ULPF holds its own exhibitions in holidays so in addition to placing
discounted products adding those leather wastage products will be better
demandable, this is shown with a demand observed in those products while
placed in the shop for some analysis.

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2.11.2 Developed productsxv

Products which are developed by this project are shown below with their sketches,
material, consumption, processing time, and picture. But they are not the only
developed products in this project rather they are selected samples to show the
possibilities and their simple processing time and cost. They are categorized in order
to keep them organized. For all products shown below the owner of this projects has
given them codes just for better communication.

2.11.2.1 Necklaces

 Design illustrations:

Model Sketches Illustration

NK00
1

NK00
2

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NK00
3

Table 7 sketch and illustration of developed necklaces

 Specification

Product Necklace
Model Material Amount/ Price/ Prodn. Color Image
code unit birr Time
Leather/ 0.015 Kg 0.50 Leather
plain box Black,
NK001
Glue - brown

O-ring 2 pcs 0.50 10

1 pcs 0.50 min.
Accessory
Silver
Total 1.75
Leather 0.020 Kg 0.50 Leather
/sheep White
NK002
garment
Thread 0.15 m 0.50
1 pcs 0.50 Accessory
15 White
11 pcs 5.50 min.

Total 7

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Leather / 0.020 Kg 0.50 Leather

plain box Brown
NK003
Rivet 6 pcs 3.78

10 Accessory

min. White
1 pcs 0.25
Black

Total 4.53
Table 8 specification of developed necklaces

2.11.2.2 Earrings

 Design illustrations:

Model Sketches Illustration

ER001

ER002

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ER003

Table 9 sketch and illustration of developed necklaces

 Specification

Product Earring
Model Material Amoun Price Prodn Color Image
code t/ unit / birr . time
Leather/ 0.005 0.50 Leather
sheep Kg Cream,
ER001 5 min.
garment black,
blue-white
2 pcs 0.50

Accessory
Silver
Total 1
Leather 0.005 0.50 Leather
/sheep Kg Brown,
ER002
garment black
2 pcs 0.50
5 min.
Accessory
Silver
Total 1

0.50 Leather

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Leather 0.007 Purple

/sheep Kg
NK003
garment
2 pcs 0.50
5 min.
Accessory
Silver

Total 1
Table 10 specification of developed earrings

2.11.2.3 Cable organizers

 Design illustrations:

Model Sketches Illustration

CO00
1

CO00
2

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CO00 77
3

Table 11 sketch and illustration of developed cable organizers

 Specification

Product Cable organizer

Model Material Amoun Price Prodn Color Image
code t/ unit / birr . time
CO001 Leather/ 0.025 0.50 Leather
plain box Kg Brown
5 min.

Glue - -
Accessory
-
Total 0.75
CO002 Leather / 0.020 0.50 Leather
plain box Kg Brown

Buckel 1 pcs 1.62

5 min.
Accessory
Black
Total 2.12

CO003 0.50 Leather

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Leather / 0.030 Brown

plain box Kg
Buckel 1 pcs 1.62

5 min. Accessory
Black
Total 2.62
Table 12 specification of developed earrings

2.11.2.4 Key holders

 Design illustrations:

Model Sketches Illustration

KH00
1

KH00
2

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KH00
3

Table 13 sketch and illustration of developed key holders

 Specification

Product Key holder

Model Material Amoun Price Prodn Color Image
code t/ unit / birr . time
KH001 Leather/ 0.030 0.50 Leather
plain box Kg Black
15
min.
Rivet 1 pcs 0.63
Zipper 16 cm 0.50
O-ring 1 pcs 0.50 Accessory
Thread 50 cm 0.25 Silver
Total 2.38
KH002 Leather / 0.1 Kg 0.50 Leather
plain box Black

Buckel 2 pcs 3.24

10
Rivet 2 pcs 1.26 Accessory
min.
Golden
Total 5

KH003 1 Leather

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Leather / 0.075 Black

patterned Kg
crocodile
Buckel 1 pcs 1.62
10
Thread 50 cm 0.25 Accessory
min.
O-ring 1 pcs 0.50
Golden

Total 3.37
Table 14 specifications of developed earrings

2.11.2.5 Office accessories and Others

 Design illustrations:

Model Sketches Illustration

OF00
1

OH00
1

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BM00
1

BM00
2

Table 15 sketch and illustration of other developed products

 Specification

Product Earring
Model Material Amount Price Prodn Color Image
code / unit / birr . time
OF001 Leather/ 0.150 1 20 min Leather
plain box Kg Black
Eyelet 3 1.89
Thread 50 cm 0.25 Access
ory
Silver
Total 3.14

EC001 Leather / 0.100 1 Leather

plain box Kg Brown

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Buckel 1 pcs 1.62 15 min

Access
ory
Thread 25 cm 0.13 Black
Total 2.75
BM001 Leather / 0.025 0.50 Leather
plain box Kg Black,
5 min.
Brown
Thread 25 cm 0.13

Total 0.63

BM002 Leather / 0.005 0.50 5 min. Leather

plain box Kg
Thread 25 cm 0.13 Red,
Purple

Total 0.63

Table 16 specification of other developed products

2.11.3 Market Response

Some of the developed jewelries were shown and placed on different jewelry shops at
different areas of Addis Ababa, Ethiopia for the reason of knowing their market price.
A chance was given to the owners of the shops to set the price of each selected jewelries.
The owners have been working on jewelry selling from 6 month up to 8 years which
make the gathered price balanced. Also, some of them have experience on jewelry
working. Below the name of shops, owners, experience, location, and sated price of
each model is placed.

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No Name of the Owner of Experience Location

shop the shop year

1. Eyerus Eyerusalem 5 years Abo saris, in front of abo circle

Jewelry
2. Hareg Jewelry Hareg 6 months Abo saris, on the left of kelebet
road

3. Maki Style Mekdes 3 years Abo saris, below from online

game zone

4. Helen’s Helen 8 years Bole, in front of ‘in and out

burger’
5. Latex Cosmo Nardos 2 years Bole bulbula, back to CBE

6. Selam Jewelry Selam 4 years Bole bulbula, in front of Birhan

bank 100 meter

7. Genet Cosmo Genet 2 years Bole bulbula, 200 meter on the

left to 360 super market

Table 17 information of shops on market response analysis

 Pricing

Model Shop Price/birr Average

Eyerus 110
Jewelry
110 birr
Hareg 120
Jewelry
Maki Style 90
Helen’s 150
Latex Cosmo 120
NK001
Selam 80
Jewelry
Genet Cosmo 100

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Eyerus 100
Jewelry
96 birr
Hareg 85
Jewelry
Maki Style 120
Helen’s 100
Latex Cosmo 95
Selam 95
Jewelry
Genet Cosmo 80
NK003
Eyerus 40
Jewelry
34 birr
Hareg 25
Jewelry
Maki Style 30
Helen’s 50
Latex Cosmo 35
Selam 30
ER001
Jewelry
Genet Cosmo 25
Eyerus 35
Jewelry
33 birr
Hareg 25
Jewelry
Maki Style 30
Helen’s 55
Latex Cosmo 30

ER003 Selam 25
Jewelry
Genet Cosmo 30
Table 18 estimated price of developed products.

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2.11.4 Cost sheets of jewelries on market response analysis

Cost sheet of necklace model NK001
COST SHEET
Product: Necklace Model: NK001
MATERIAL COST
Item Specification Unit Consumption Unit Total
cost/birr cost/birr
1 Sheep Kg 0.020 12 0.50
garment
TRIMS AND OTHER FINDING COST

Item Specification Unit Consumption Unit Total

cost/birr cost/birr
1 Thread m 0.15 1 0.50
2 Pcs 1 0.50 0.50

3 Pcs 11 0.50 5.50

Total 7
DIRECT LABOUR COST

Cost SAH/min. Wage Cost (birr per

Center rate/hr pieces)

Pattern 3 14.58 0.75

making
Cutting 7 16.67 2
Bench 5 11.98 1
work

Total Overhead cost 5.1birr

Total cost of the Overhead cost + labor cost + material cost =
product 15.85birr
Table 19 Cost sheet of necklace model NK001

Profit = 45% *total cost

= 7.1birr
Sale price = total product cost + profit
= 15.85 + 7.1= 22.95birr

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Cost sheet of necklace model NK003

COST SHEET
Product: Necklace Model: NK003
MATERIAL COST
Item Specification Unit Consumption Unit Total
cost/birr cost/birr
1 Plain box Kg 0.020 0.10 0.30
TRIMS AND OTHER FINDING COST

Item Specification Unit Consumption Unit Total

cost/birr cost/birr

1 Rivet Pcs 6 0.63 3.78

2 Pcs 1 0.50 0.50

Total 4.28
DIRECT LABOUR COST

Cost SAH/min. Wage Cost (birr per

Center rate/hr pieces)

Pattern 7 14.58 1.7

making
Cutting 5 16.67 1.4
Bench 3 11.98 0.6
work

Total Overhead cost 5birr

Total cost of the Overhead cost + labor cost + material cost =
product 12.98birr
Table 20 Cost sheet of necklace model NK003

Profit = 45% *total cost

= 5.84birr
Sale price = total product cost + profit
= 12.98 + 5.84 = 18.82birr

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Cost sheet of earring model ER001

COST SHEET
Product: Earring Model: ER001
MATERIAL COST
Item Specification Unit Consumption Unit Total
cost/birr cost/birr
1 Sheep Kg 0.010 12 0.50
garment
TRIMS AND OTHER FINDING COST

Item Specification Unit Consumption Unit Total

cost/birr cost/birr

1 Pcs 2 0.25 0.50

Total 0.50
DIRECT LABOUR COST

Cost SAH/min. Wage Cost (birr per

Center rate/hr pieces)

Pattern 3 14.58 0.7

making
Cutting 2 16.67 0.56
Bench 1 11.98 0.20
work

Total Overhead cost 2birr

Total cost of the Overhead cost + labor cost + material cost =
product 4.46birr
Table 21 Cost sheet of earring model ER001

Profit = 45% *total cost

= 2birr
Sale price = total product cost + profit
= 4.46 + 2 = 6.46birr

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Cost sheet of earring model ER003

COST SHEET
Product: Earring Model: ER003
MATERIAL COST
Item Specification Unit Consumption Unit Total
cost/birr cost/birr
1 Sheep Kg 0.014 12 0.50
garment
TRIMS AND OTHER FINDING COST

Item Specification Unit Consumption Unit Total

cost/birr cost/birr

1 Pcs 2 0.25 0.50

Total 0.50
DIRECT LABOUR COST

Cost SAH/min. Wage Cost (birr per

Center rate/hr pieces)

Pattern 3 14.58 0.7

making
Cutting 2 16.67 0.56
Bench 1 11.98 0.20
work

Total Overhead cost 2birr

Total cost of the Overhead cost + labor cost + material cost =
product 4.46birr
Table 22 Cost sheet of earring model ER003

Profit = 45% *total cost

= 2birr
Sale price = total product cost + profit
= 4.46 + 2 = 6.46birr

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2.12 Conclusion
Finally, the above analyses are showing that the company is losing a significant amount
of capital while that capital is possible to be converted into a higher profit with less
effort. As it is shown before the company has lost totally 1,301,281.2birr within nine
months from only seven models production. 1,075,981.2birr from softy box,
57,757birr from plain box, and 167,543birr from sheep garment.
And in this project: -
 Wastage amount
 Sheep garment and Softy box
For products generated in this project from sheep garment and softy box,
the design room of ULPF has given 10% of a net pattern size as a wastage
allowance. This shows that 90% of wastage generated will be converted in
to a new product. Resulting in decreasing the wastage amount generated
from sheep garment and softy box by the company by 90%.
 Plain box
Likewise, the wastage allowance given for products developed from those
leather is 21%. Showing that 79% of wastage of those leather can possibly
converted in to a product.
 Cost
The company can possibly sell 50kg of wastage of sheep garment in 600birr as
a leather scrap but in this project, it is shown that the company can produce
1750pcs, 500pcs, and 500pcs of model NK001, ER001, and ER003 whose can
be sold in 192,500birr, 17500birr, and 16500birr respectively, which is greater
by 37,650% from cost of the leather scrap.
Wastage amount = 50kg
Wastage allowance = 5% = 5kg
Usable wastage amount = 45kg… (35kg for NK001, 5kg, 5 kg for ER001
and ER003)
 NK001: - consumption = 0.02kg
Unit selling price = 110birr
Quantity from 35kg = Usable wastage amount / consumption
= 35kg / 0.02kg = 1750pcs
Total selling price = Quantity from 35kg * Unit selling price
= 1750pcs * 110birr = 192,500birr
Net profit = Total selling price – (Quantity from 35kg * total product cost)
= 192,500 – (1750 * 15.85) = 164762.5birr
 ER001 and ER003: - consumption = 0.01kg
Quantity from 5kg = Usable wastage amount / consumption
= 5kg / 0.01kg = 500pcs
Total selling price of ER001 = Quantity from 50kg * Unit selling price
= 500pcs * 35birr = 17500birr
Net profit of ER001 = Total selling price – (Quantity from 5kg * total product cost)
= 17500 – (500 * 4.46) = 15270birr
Total selling price of ER003 = Quantity from 50kg * Unit selling price
= 500pcs * 33birr = 16500birr

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Net profit of ER003 = Total selling price – (Quantity from 5kg * total product cost)
= 1500 – (500 * 4.46) = 14270birr
 Even greater profit
Even the company can also generate highly greater net profit than some time taking
and complex models of the company leather products. LW108 and LW056 are
highly sold leather wallets of ULPF with maximum production rate of 5 and 10
pieces per day per a bench (4 preparation and 2 stitching operators) having a net
profit of 70.74birr and 106.91birr respectivelyxvi. While model NK001 and ER001
can be produced 26 and 80 pcs per a day per two persons having a net profit of
94.15 and 30.54birr per piece.
This means: - LW108 and LW056 generate 353.7birr and 1069.1birr net profit per
day respectively while model NK001 and ER001 generate 2447.9birr and
2443.2birr per day respectively.

So, the ULPF can avoid loss from leather scrap with substituting by higher profit
generation through changing those leather scraps to jewelries and simple accessories.

2.13 Recommendation of the project

The main recommendation of this project for the ULPF is that the company has to think
beyond selling the leather scrap to made it product. The company can choose from the
following two production cycle options for better byproduct production:

 Either producing those leather scrap products simultaneously with the main
production cycle
 Or to produce them seasonally with higher amount considering coming market
options like local exhibitions and holiday exhibitions (inside or outside).

Regarding the design of products, it is recommended that they should be improved and
updated with the running market specially for jewelries. Using quality accessories will
highly increase their price.

Finally,

"You have to stop thinking of yourself as a company that creates a certain product and
instead think about the resources you have (including raw material resources) and how
you can use them to produce as much value as possible,"xvii. Professor Deishin Lee

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CHAPTER THREE
3. Overall benefit of the internship
The objective of internship program is to enhance students exercise theoretically
acquired knowledge in to practice and develop practical skills which intern enable them
lead their life successfully in the existing world, plays great role in the development of
nation economy as a citizen, up grading theoretical knowledge, improving interpersonal
communication and relationship, improving team work, understanding work ethics
relative to issues, improving leadership and entrepreneur ship.
3.1 Benefits gained in terms of improving practical skill
 Involvement in production activities like designing, cutting, preparation,
stitching, assembling, and finishing.
 Know how to maintain sewing machines.
 Problem solving approaches and procedures in solving practical
problems.
 Practice how to check the conformance of a product.
3.2 Benefits gained in terms of up grading theoretical knowledge
There are different courses that I have learnt before joining an intern ship and these
courses are help for practical performing, among these:
 Developing theoretical knowledge on how to make a pattern for a
product.
 Acquiring knowledge of varies designs from different types of products
produced.
 Developing the basic process of production departments.
 Know handling the raw material is the basic criteria for the products
produced.
 How to cut leather with taking into consideration of its shape and
pattern’s shape and size.
 Practically maintaining machines like sewing machines.
 How to prepare a preventive maintenance plan and how carryout and
control it.

3.3 Benefits in terms of interpersonal communication skill

I met different persons that have worked on their work place/position. These include
administration, plant manager, chiefs of each department and operators. I learnt a lot
from them. For instance, how to approach with employees, the way of asking questions

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which aren’t precisely understood during observation, understanding their

diplomatic/technical words relative to scientific words. Communicating and discussing
with workers/employers/ and any other person are very important in order to conduct
this research peacefully effectively in the company.

3.4 Benefits gained in terms of improving team playing skill

The role of team playing is the basic one for production process of the company in order
to produce the expected product. Having good team playing work in the company can
lead to increase production and productivity of the company as well as improve good
quality of production.
Team playing skill is concerned with taking responsibilities in group and role of
individual as group member. This skill helps to solve problems occurred in the factory
easily. In a group member accepting group members’ idea and way important role.
3.5 Benefits gained in terms of improving leadership
From the working condition in the factory the following effect of leader in doing tasks
is observed.

Result of lack of worker’s initiation towards work.

Organizing group member.

Way of ordering peoples and the value of giving responsibility for
others and taking responsibility.

Way of assembling workers and allocating for different tasks.


Solving the problems faced and handling the employees

3.6 Benefits gained in terms of understanding about work ethics and

related issues
This program has enable me observe the following work ethics in the working
environment of the company. [And workers with good ethical skill get reward in many
ways.]
 Punctuality

 [The operators must wear some suitable working clothes]

 Hard working ability

 Loyalty for work and each other

 Acceptance among workers to one another and boss.

 Giving emphases to one’s own duty

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3.7 Benefits gained in terms of entrepreneurship skill

It enables me to identify products required in the market and ways of demand leading
production. The other big thing is that this internship helped me to realize that the
leather products production sectors is a sector which not worked on.

[on the problem solving to decrease the idle time

Job creativeness


Performing my task with plane

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REFERENCES
i
ELICO-Universal Leather Products Factory, ‘ULPF COMPANY PROFILE’, Saris, Addis Ababa,
Ethiopia.
ii
Stan Ovidiu Valentin, ‘MANAGEMENT OF PROCESSING AND RECOVERY OF
LEATHER WASTE’, University of Oradea, Oradea, Romania, P 157.

iii
http://hbswk.hbs.edu/item/transforming-manufacturing-waste-into-profit, Sunday, May 14, 2017,
2:13:44 PM.

iv
Sinit Teklegiorgis, October. 2016. ‘Improving Profit of Universal Leather Product Factory
Using Leather Waste or Leather Strap’, Bahir Dar University, Bahir Dar, Ethiopia, p 18.

v
ELICO-Universal Leather Products Factory, ‘Leather scrap auctions document of 2009 E.C.’, Saris,
Addis Ababa, Ethiopia.
vi
ELICO-Universal Leather Products Factory, ‘Leather scrap auctions document of ULPF, 2003-2009
E.C.’, Saris, Addis Ababa, Ethiopia.
vii
http://hbswk.hbs.edu/item/transforming-manufacturing-waste-into-profit, Sunday, May 14, 2017,
2:13:44 PM.
viii
Stan Ovidiu Valentin, ‘MANAGEMENT OF PROCESSING AND RECOVERY OF LEATHER
WASTE’, University of Oradea, Oradea, Romania, P 158-159.
ix
ELICO-Universal Leather Products Factory, ‘WASTAGE ALLOWANCE’, Saris, Addis Ababa,
Ethiopia.
x
ELICO-Universal Leather Products Factory, ‘Leather scrap auctions document of 2009 E.C.’, Saris,
Addis Ababa, Ethiopia.
xi
ELICO-Universal Leather Products Factory, ‘Total production quantity of each model in a period of
2016/17 July-March production cycle’, Saris, Addis Ababa, Ethiopia.

xii
ELICO-Universal Leather Products Factory, ‘Raw material purchasing cost 2009 E.C’, Saris, Addis
Ababa, Ethiopia.
xiii
ELICO-Universal Leather Products Factory, ‘Selling price of leather scraps 07/06/2009 E.C auction’,
Saris, Addis Ababa, Ethiopia.
xiv
ELICO-Universal Leather Products Factory, ‘Annual reports of ULPF, visitor buyers ratio of 2012-
2016’, Saris, Addis Ababa, Ethiopia.
xv
https://www.pinterest.com/settings,Wednesday, May 10, 2017, 1:12:14 AM.

xvi
ELICO-Universal Leather Products Factory, ‘Cost sheet of leather wallets model LW108 and
LW056’, Saris, Addis Ababa, Ethiopia.
xvii
http://hbswk.hbs.edu/item/transforming-manufacturing-waste-into-profit, Sunday, May 14, 2017,
2:13:44 PM.

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