ABSTRACT
This work is aimed at determining the feasibility of manufacturing automobile
batteries on a small scale ·Ievel. It involves an economic evaluation directed at
the typical 12V, 60Ah car battery. A process analysis was done with a view to
determining the scalability of the processes. A review of relevant literature
gives insights on the product structure and workings, material interactions,
process requirements and the various manufacturing strategies and their
respective benefits. The process is designed with a bias for outsourcing,
a growing trend in the direction of specialization and agile product
development. Thus, the process is designed for assembly as a parallel/flow
line hybrid work system. Next, economic models are developed to assess
costs, profit, revenue and optimal production volume. Also, breakeven and
Payback Period models are developed for determining the viability of the
venture. It was found that with 11 workers, the facility yields up to 1173 units
of car battery per month. This requires an initial capital investment of W I,
132,160. At an initial price of N 5,500, the product is expected to generate
monthly revenue of N6,450,830 at full running capacity. Thus, a profit margin
of N 3,015,340 was obtained, amounting to 46.7% of total revenue.
Breakeven occurs at a demand of 121 units, which is 10.3% of the monthly
production capacity. This study shows the potentials and entrepreneurial
opportunities of investing in the small scale manufacture of engineering
products.
Oladokun, V (2021). Small Scale Production Of Auto-Battery In Nigeria: An Engineering Economic Model. Afribary. Retrieved from https://afribary.com/works/small-scale-production-of-auto-battery-in-nigeria-an-engineering-economic-model
Oladokun, V. "Small Scale Production Of Auto-Battery In Nigeria: An Engineering Economic Model" Afribary. Afribary, 21 Apr. 2021, https://afribary.com/works/small-scale-production-of-auto-battery-in-nigeria-an-engineering-economic-model. Accessed 24 Nov. 2024.
Oladokun, V. . "Small Scale Production Of Auto-Battery In Nigeria: An Engineering Economic Model". Afribary, Afribary, 21 Apr. 2021. Web. 24 Nov. 2024. < https://afribary.com/works/small-scale-production-of-auto-battery-in-nigeria-an-engineering-economic-model >.
Oladokun, V. . "Small Scale Production Of Auto-Battery In Nigeria: An Engineering Economic Model" Afribary (2021). Accessed November 24, 2024. https://afribary.com/works/small-scale-production-of-auto-battery-in-nigeria-an-engineering-economic-model