sample production plan and organization and management plan

7/31/2019 Sample Production Plan and Organization and Management Plan

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SECTION II

PRODUCTION PLAN

2.1 Fixed Capital

S/NO ITEM QUANTITY COST/ITEM COST (Tsh)

1 Dish & Decoder 3 280,000 840,000

3 Encoder 13 200,000 2,600,000

4 Transmission Cable 5 rollers 200,000 1,000,000

5 Distribution Cable 10 rollers 100,000 1,000,000

6 Computer 3 700,000 2,100,000

7 Conduit 2000 2000 4,000,000

8 Generator 1 200,000 200,000

9 Wooden tables 3 150,000 450,000

10 Chairs 9 50.000 450,000

11 Air Conditioners 3 300,000 900,000

12 50 way Hub Switch 20 1000,000 2,000,000

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13 Push panel 20 20,000 400,000

15 Printer 1 300,000 300,000

16 Photocopy machine 1 700,000 700,000

17 Television 3 280,000 840,000

18 Carpets 3 100,000 300,000

19 Tri cycle 1 2,000,000 2,000,000

TOTAL 20,080,000

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2.2 Life of Fixed Capital

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2.3 Maintenance and Repairs

Few maintenance and repairs will be carried out in case of breakdowns to generators, wire

abreactions, repainting, changing cables.

2.4 Sources of equipment and Materials

All the equipments and materials are available in Dar-es-salaam city

S/NO

ITEM

QUANTITY

COST/ITE

M

TOTAL

CO

ST(Tsh)

EPR

ECIATION

RAT

E(X100%)

DEPR

ECIATION

CO

ST(Tsh)

1 Dish &Decoder

3 280,000 840,000 0.05 42,000

2 Encoder 13 200,000 2,600,000 0.50 1,300,000

3 Transmission

Cable

5 rollers 200,000 1,000,000 0.05 50,000

4 Distribution

Cable

10 rollers 100,000 1,000,000 0.05 50,000

5 Computer 3 700,000 2,100,000 0.20 420,0006 Conduit 2000 2000 4,000,000 0.05 200,000

7 Generator 1 200,000 200,000 0.05 10,000

8 Wooden

tables

3 150,000 450,000 0.05 22,500

9 Chairs 9 50 450,000 0.05 22,500

10 Air Conditioners

3 300,000 900,000 0.05 45,000

11 50 way HubSwitch

20 1,000,000 2,000,000 0.05 100,000

12 Push panel 20 20,000 400,000 0.05 20,000

13 Printer 1 300,000 300,000 0.20 60,000

14 Photocopy

machine

1 700,000 700,000 0.20 140,000

15 Television 3 280,000 840,000 0.05 42,000

16 Carpets 3 100,000 300,000 0.30 90,000

17 Tri cycle 1 2,000,000 2,000,000 0.30 600,000

TOTAL 3214000

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2.5 Planned Capacity

UDSM CABLE TELEVISION has planned to begin servicing 822 rooms.

2.6 Terms and Conditions of Purchasing the Service

The service will be installed to particular room when the residents have paid for the service.

But the service will have been already installed up to the hall of residence, thus the cost of

distribution cables will come into account.

2.7 Future capacity

The service is expected to reach all rooms of residence in four years time.

2.8 Terms of and Conditions of Purchase of Equipment

The equipment will be paid for at the time of installation or when it is ready for operation.

2.9 Business Location and Layout

The main office will be located at main campus in hall IV in which control and distribution

will be executed for main Campus customers. The business will have sub distribution centres at

Mabibo and Uclas.

3.0 Labour

A manager will be hired to oversee the overall operation of the service. An accountant will also

be hired to handle business accounts. The company will also hire four technicians to ensure

smooth operations of the services together with a secretary.

3.1 Cost of Labour

The manager will be entitled to a monthly wage of Tshs 500,000, while Company accountant

will receive Tshs 350,000 monthly. Technicians will be paid Tshs 300,000 monthly while the

secretary will receive Tshs 200,000 monthly.

Indirect labour Per Month (Tshs)

Manager 500,000

Secretary 200,000

Accountant 350,000

________

1,050,000

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Direct Labour

4 technicians @ 300,000 1,200,000

__________

Total Labour Cost 2,250,000

3.2 Labour Availability

Workers of this type of service are available locally. We do not expect any problems as such

kind business already exist in the Dar es salaam city therefore technicians are readily available.

3.3 Labour Productivity

Wages to Company workers will be paid on flat rate basis.

3.4 Business Overhead Expenses

Business overhead expenses consist of;

Per Month (Tshs)

Indirect Labour 1,050,000

Electricity 150,000

Telephone 300,000

Rent 150,000

Depreciation 267,833

Fuel 30,000

Total Expenses 1,947,833

3.5 Service Cost

Per Month (Tshs)

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Multi Choice charges per month 468,000

Direct Labour per month 1,200,000

Total Overhead costs 1,947,833

________

Total Service Cost 3,615,833

Production cost per Unit in a Given Period;

= Total Service Cost

No. of Rooms

=822

300,615,3

Unit Service cost = Tshs 4,399

SECTION III

ORGANIZATION AND MANAGEMENT ANALYSIS

3.1 Form of Business

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The business will be registered under the name Cable Television, C TV, owned by share

holders. Business physical address will be UDSM hall IV common.

3.2 Organizational Structure

The business will be headed by manager hired by the Board of Directors who will oversee the

finance and technical operations of the organization. The manager will be assisted by the

accountant who will be in charge of the books of the Company. Company Technicians will be

directly dealing with service delivery including trouble shooting. Among the technicians, will

exist a technical supervisor who will report to the manager while the other technicians report to

him.

The secretary will handle office paper work and customer services. (See figure 3.2)

Figure 3.2 Organization Chart.

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BOARD OF

DIRECTORS


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3.3 Business Experience and Qualifications of the Manager

The hired manager has a technical experience, Advanced Diploma holder in electronics and

Telecommunication, with enough experience in management and he is innovative.

3.4 Pre Operating Activities

The board of directors has the following activities to be undertaken before business operation

starts;

1. Preparing the business plan 4 weeks

2. Registering the Business 2 weeks

3. Hiring manager 1 week

4. Hiring of technicians and Accountant 3 weeks

5. Contacting equipment supplies 2 week

6. Installing equipment 8 weeks

7. Service Trial 2 days

8. Promotion 3 week

The Service will start its operation immediately after the completion of testing.

3.5 Pre Operating Expenses

Training workers will be necessary for familiarization of modern equipment operations. The

trainers will be the owners of the Service since they are well experienced.

MANAGER

SECRETARY

TECHNICAL

SUPERVISOR

TECHNICIANSACCOUNTANT

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Pre-operating Expenses Tshs

Registration cost 500,000

Survey cost 500,000

Training cost 150,000

Promotion cost 800,000

Transportation cost 500,000

Communication cost 100,000

Electricity 50,000

__________

Total Pre-Operating Expenses 2,600,000

3.6 Office equipment

The company office equipment will be three tables, nine chairs, photocopier, three televisions,

three computers, three air conditioners and one printer. All these will cost 6,040,000

Yearly depreciation of all these equipment will be842,000

3.7 Administrative Expenses

Monthly administrative expenses will be made up of;

Depreciation of office equipment 842,000

Supplies and Communication 100,000

Electricity 75,000

Salaries 1,050,000

_________

Total 2,067,000

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