policies at national level are formulated through an integrated strategy. Representatives from ministries of agriculture, industry, national community development, health and private
industry and consumer associations can form a committee as a National ATIs and LCTE production Board.125. The board should have a chairperson who will have overall responsibility for the board's activities. The chairperson should be chosen from any of the representatives of the various groups on the board. This person should have the full backing of the relevant groups to formulate and co-ordinate policies to foster the development of ATI and LCTE. Thus the board would be the institutional setting where all those concerned with ATI and LCTE -government, private industry, farmers, consumer groups would help formulate appropriate national policy. The board would be the institutional mechanism where the supply and demand for ATI and LCTE could be assessed and production of appropriate ATI and LCTE could be facilitated by government information, financial inducements and guarantees, and technical assistance.
126. It is understood, however, that these structures are governed by the policies that have been outlined in section 4.5 above.
5.2.13.: Co-operation arrangements between relevant national institutions
127. It is a sad fact that very useful information could be exchanged between firms at the national level but this is not usually the case because of the inherent mistrust and lack of confidence between these firms. An important role of government is to provide the atmosphere for relevant institutions to provide information to enterprises within the country. This can be achieved by the promoting of networking either through existing groupings or
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ECA/IHSD/IDPS/ENG/010/92 Page 64
formulation of new ones through which ATIs and LCTE enterprises can obtain information as well as establish linkages with other firms
within or outside of the country. Information is generally required
in the following areas:
A comparison of research programmes and previous research achievements at the national level;
An assessment of procurement practices for new materials, equipment, technology and services;
A comparison of national production programmes.
5-3-: Subreaional and Regional level
128. Policies and programmes should be developed at subregional and regional level to give a base for member countries to improve their capabilities to adopt modern technology to local conditions and create possibilities for further specialization. Existing subregional projects that satisfy the needs of countries in the subregion should be reinforced instead of creating new ones that end up less successful. A very good example can be found in Central Africa where TROPIC in Cameroon has been the major producer of ATI and some LCTE for the whole subregion. In 1991, TROPIC exported various equipment to neighbouring countries amounting to 1,045,796,000 FCFA. Of this amount, Congo bought equipment from TROPIC for 35,818,916 CFA; Gabon for 109,337,520; Central African Republic for 97,836,775 CFA; Chad for 12,785,771 CFA; and others
10,003,570 CFA. This type of cooperation should be encouraged.
129. With little assistance and the political will, subregional policies and programmes of action can be achieved resulting in the harmonization and strengthening of subregional cooperation among member countries. To this end, pilot small-scale units could be established in selected countries in the subregion to assess their effectiveness. The experience gained in running these workshops could be shared by other member countries.
13 0. The regional organizations such as ARCEDEM, ARCT, ARSO should be contacted for assistance in elaborating policies concerning the ATI and LCTE industries. Subregional and regional consensus on co operation could evolve by means of regular meetings and communications between the various national bodies which co ordinate policies to aid the development of ATI and LCTE. The forum for these meetings would be existing subregional and regional organizations. These meetings could be arranged regularly and could serve as a focal-point for each subregion to make necessary
ECA/IHSD/IDPS/ENG/010/92 Page 65 decisions that will enhance new co-operation arrangements monitor existing ones.
and
131. The profiles of small-scale engineering industries for the manufacture of agricultural tools and implements and low-cost transport equipment are given in chapter six. An attempt has been made to make , available to the prospective entrepreneur some technical information concerning the manufacturing of simple hand tools and the bullock cart.
ECA/IHSD/IDPS/ENG/010/92 Page 66
CHAPTER SIX : PROFILES OF SMALL-SCALE ENGINEERING INDUSTRIES FOR MANUFACTURING OF ATI AND LOW COST AGRO-TRANSPORT EQUIPMENT
132. This chapter is devoted to the formulation of techno-economic
manufacturing profiles on the selected product groups, based on product identification, production volume, production and manufacturing techniques at various industry levels, and selection criteria for machine tools, equipment, supporting facilities for the manufacture of ATIs and LCTE in the African region.6-1- MANUFACTURING UNITS OF ATI 6.1.1. Product
Manufacture of spade, hoe, fork, sickle.
6.1.2. Product specification (selected four product mix)
Product specification
Spade Blade and shank size - overall length 20", blade size - 8" x 6"
weight - 1.5 kg.
Hoe (tined) Maximum length of tine - 10", width 6", tine diameter %" , weight lkg.
Fork Weeding fork - 3 prongs, length 14", width 7" dia. of prong 5/8", tang
bore - 1%" dia. min. - 2% max.
Weight 2kg.
Sickle Length 9", max width 1", handle 5", weight
-6.1.3. Material specification
Material specification for the tools will be as follows:
SAE - 1078, Carbon - 0,72 to 0,85 Manganese - 0,3 0 to 0,60
The material is suitable for forge and heat treatment.
6.1.4. Production volume
ECA/IHSD/IDFS/ENG/010/92 Page 67
Manually operated machine tools. No electric power available
Electric power operated machine tools-supply 30kw, 50c/s single phase 220/240V
AC.
6.1.5. Manpower requirement
Category of
6.1.6. Floor area
Shop without electric supply Show with electric supply
20ft X 15 ft = 300 sq.ft 40 ft. X 30 ft. = 1,200 sq.ft
6.1.7. Machinery and equipment - Estimated cost
Hand Operated Machine Tools (electricity not available Description
Electrically operated machine tools; 30kw, 50 e/s single phase 220/240v AC
Description
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Hand shear 12"
coal fired furnace with hand blow type blower 24" x 24" x 18"
Anvil with pedestal 200 kg.
Quenching tank 24" x 24" x 24"
Pedal type grinding machine 12"
wheel
Pedal type polishing machine
Hand nibbler - %
Blacksmiths tools and conventional tools
Miscellaneous
Total cost US$
1
Power shear 1/4
oil fired or cool fired furnace %hp 24"x24"x18"
Mechanical spring forge hawer 1 ton 3/4 hp Quenching tank 36'lx36»x36't
Anvils with pedestal 200 kg
Double ended pedestal grinder %hp 12" wheel Double ended polishing machine tthp.
Manual roll bending machine
Electing arc welding machine 120 amp.
Blacksmith's tools, W portable drill, paint and brush
Miscellaneous Total cost US$
1
6.1.8. Investment required
Basic Investment
(A) Fixed Capital
Shop with
ECA/IHSD/IDPS/ENG/010/92 Page 69
a) Land
b) Building cost
US$5.00/sq.ft. - 300 sgft.
US$ 5.00/sqft. - 1200 sq.ft.
c) Furniture,fittings, racks etc.
d) Machinery and equipment e) Electric installation f) Erection
g) Transport (cart or trolley) h) Contingencies
Total US$
(B) Workincr capital
a) Direct material (3 months) b) Labour (3 months)
c) Indirect costs d) Training costs e) Contingencies Total US $
(C) Total Investment reauired
(excluding cost of land) C =(A + B)US$
1 500
6.1.9. Annual Manufacturing cost 6.1.9.A Direct Material Cost MOW - Manufactured Own Workshop BOF - Bought out finished
IMP - Imported Steel Price = US$ 300/metric ton
ECA/IHSD/IDPS/ENG/010/92 Page 70
Shop with electric shop without Mails + ferrules
15% scrap for steel
Total direct material cost US$
6.I.9.B.
12000 units/vear cost US$
4000 units/vear cost US$
Indirect items
Lubricants, coolants etc.
Maintenance and spare parts Paints, office supplies Total indirect cost
G.1.9.C Power, fuel anri water cost
Shops with electricity Shops without electricity
sudpW cost US$/year suDDly cost US$/year
Power 30 kw, at 60,000kwh Fuel,coal/oil
Water Total
6.I.9.D. Transport cost
Shop with electricity supply cost
USS/year
Shop without electricity supply
cost USS/year
6.I.9.E. T.abour Cost
Shop uithout electric Suppl Shop with electric Suppl
ECA/IHSD/IDPS/ENG/010/92 Page 71
Category
Direct skilled labour Indirect labour
6.I.9.F. Summary - Annual Manufacturing Cost
costs
I.1.8-A Direct material I.1.8-B Indirect material I.1.8-C Power, fuel, water I.1.8-D Transport
I.1.8-E Labour cost
Total annual manufacturing cost
Shop without electricity Costs US$
Shop with electricity Costs US*
9475
6.1.10. Annual Sales Turnover
Product
Spade Hoe Fork Sickle
Annual sales turn over
Shop without electric supply Unit selling
Shop with electric supply Units/year
6.1.11. Total Annual Manufacturing Cost
Item Shops without electricity
annual cost US$/year
Shops with electricity annual cost US$/year
y 5ft,
ECA/IHSD/IDPS/ENG/010/92 Page 72
1. Direct material cost (9-F) 2. Maintenance and spare parts 3. Depreciation of fixed capital 10%
<ref.7>
Total annual cost
8,290 200 400
8890
26625 1000 1250
28875
6.1.12. Profit
Item Shops without
electricity supply cost US$
/year
Shops with electricity supply cost US$
/year
Annual sales turnover
Total annual costs
Profit (before tax)