how to start a nail factory (part two)

B. PLANT CAPACITY AND PRODUCTION PROGRAMME
1. Plant Capacity
According to the market study, and the economic scale of nail manufacturing, the rated
capacity of the plant is proposed to be 2,400 tonnes of nail per annum.
The selected production capacity is based on 300 working days per annum, 3 shifts of
eight hours each per day. The rest of calendar days are left for cleaning and
maintenance.
2. Production Programme
The production program is based on the time required for the adjustment of feedstock,
labour and equipment to the technology selected. Accordingly capacity utilization is set
as follows:
- 75% of plant capacity during the 1st year
- 85% of plant capacity during the 2nd year
- 100% of plant capacity during the 3rd year
IV. MATERIALS AND INPUTS
A. RAW MATERIALS
Raw materials required for production of nails are:-
1. Low carbon steel wire for both types, and
2. Cold rolled steel sheet for roof nails.
Assuming that 12.5% of the total product will be roofing nails, the annual requirement of
these raw materials is shown in Table 4.1. Roofing nails are usually galvanized for
protection against corrosion. The finished products are packed with a hard rolled paper.
Table 4.1
SUMMARY OF ANNUAL CONSUMPTION FOR RAW AND AUXILIARY
MATERIALS AND COST

B. UTILITIES
Industrial water of 250 m3 and electric power of 15000 kWh are consumed in this plant
per annum. The total cost of utilities is estimated to be USD 335. Details of which are
shown in Table 4.2.

Table 4.2

ANNUAL REQUIREMENT OF UTILITIES AND COST
V. TECHNOLOGY AND ENGINEERING
A. TECHNOLOGY
1. Production Process
Manufacturing of nails passes through the following steps.
- Feeding of wire coil to nail making machine
- Forming the bottom and top portion of nail and cutting on the nail making
machine manufacturing of flat head nails ends here
- Manufacturing of the nail head on a washer making machine
- Polishing of head part
- Feeding the head to the nail making machine
- Punching of the head to the nail and pressing to umbrella shape
- Galvanizing

2. Source of Technology
Visiting Ethiopian Iron and Steel foundary Factory, which is located in Addis AbabaAkaki; and discussing with the technical personnel as well as referring to the technical
document it is possible to compile information for the technology.
B. ENGINEERING
1. Machinery and Equipment
The list of machinery and equipment required for the manufacture of nails is given in
Table 5.1. Total cost of machinery and equipment is estimated at USD 168700 , out
of which USD 136000 is required in foreign currency.
The plant needs one pick-up vehicle for transportation of finished product and for office
activities. The total cost of vehicle is estimated at USD 9350.
Table 5.1
MACHINERY AND EQUIPMENT REQUIREMENTS AND COST