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PROJECT PROPOSAL DOCUMENT

I. PROJECT DESCRIPTION

Project Title: High standard quality shoes production project to bridge the gaps in
demand for unsatisfied customers in Country and abroad

Type of Project: Export Standard Shoes Manufacturing:-This project proposal


intends to establish an export standard shoes manufacturing factory owned by five
share holders and is managed by independent management professionals. A factory
has a vision to produce an export standard mens and ladies shoes that have quality
& fashionable standards to make available in both local & international markets. It is
also planned that the product mix will consists of ladies & mens shoes to be
produced in 30% and 70% proportion respectively. This project is planned to operate
in a medium level and has a capacity of producing 300 pairs of shoes in a day at
normal 8 hour working hours.

Project Proponent/s: Z2MT shoe manufacturing plant

Number of Beneficiaries: 84,000 customers (assuming all shoes produced will be


sold) and 171 employees and their dependent 855 on
average will benefit from this project

Project Beneficiaries: 84,000 (30% for Ladies)

Location of Beneficiaries: All users in Ethiopia, East Africa Countries, Europe,


America

Date of Implementation/Duration: As mentioned in the detailed planning the


implementation of the project will start beginning from 1 January 2017. It is estimated
that site preparation, construction of the building and Importing & erection of
machineries, etc. will be taking about one year (365 days) and production will
commence beginning from January 2018.

Area of Project Implementation: Oromia Regional State East Shoa Mojo Town

Budget Requirement: Birr 90,077,585 is required for building the factory, buying
the machines, Vehicles plus production cost for the first year.

I. BACKGROUND/SITUATION ANALYSIS
What prompted the project?

Production of finished quality standard leather and shoe product is a gray area which
has not been exploited by investors and is a sector which government is encouraging
and providing support. The information from the Statistics office is telling us that
Ethiopia export and import figures are not matching. The import figures in value and
quantity for most leather and shoe products from the years 2012 to 2016 are more
than the export one (Refer annex A), so this indicates that there is market (demand)

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for shoe products in the Country. There is an opportunity to produce locally and fill
the market gaps, so that the plant can generate wealth for the shareholders and create
value for the organization. Producing quality leather shoe products is adding value
and can generates hard currency for the country and government strategically
considered in its STP phase 2 that it provides Incentive this area to develop. Ethiopia
achieved a rapid economic growth and laid a foundation for the country to move
from agricultural led economy to industrialization by making a sustainable
investment in infrastructure & human capital. The growth is broad based in
agricultural, industrial and service provision sectors. The industry sector is expected
to grow progressively by domestic or international standards. The manufacturing
sector is a complement of industrial sector & the government has also given special
attention in the second growth and transformation plan.

Is there an existing concern or potential problem that you want to address?

Producing export standard shoes in country will help customers to have the choices
and obtain better quality product at a reasonable price; create wealth and value for
the shareholders and the organization; contribute in reducing unemployment; save
the hard currency required to import shoes from abroad, so that the hard currency
saved can be used for importing other important items. The market for leather shoes
is expected to grow in both national & international markets. In case of Ethiopia
following the market growth & the conducive condition created for economic
development in the country likely to improve the standards of living of the
population resulting an increase consumption of leather shoes. The demand for
leather shoes is expected to grow with an increase in the number of population and
there is an evidence that production of leather shoes and boots growth rate is 26%
and 36% in the year 2005 and 2006 E.C respectively (Refer annex B).

II. PROJECT OBJECTIVES

OBJECTIVES STRATEGIES
What does the project hope to achieve? What are the strategies that must be done to meet the
Establish a manufacturing objectives?
plant that produces mens & Use Advanced Technologies, High Quality
ladies shoes both for domestic Leather & Shoe Accessories
& International market
Use advanced technology and Enhance the wealth of the shareholders and the
organization and being low-cost provider
make the production process
efficient and effective Most responsive and fast delivery supplier
Search for all possible market possibilities
Produce quality product meeting
Innovate for better quality product and services
customer specification and
Develop Effective and efficient Management
requirement and build
Information System and use e-commerce
relationship
Ensure the timely delivery of
items to customers (users)
Enhance market shares
Deploying highly competent
professionals through continuous

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skill development
Ensure and supply timely
information required for
managers at all levels

III DESIRED IMPACT AND OUTCOME OF THE PROJECT

What are the long term effects of the project? (Economic, social, cultural, institutional,
environmental, technological, etc.)

The project will create wealth for the organization; creates job opportunities for the
surrounding communities and are planning to provide support to charities in the
form of donation, etc. The plant is producing its products in an environmentally
friendly manner and arrange the sales of scraped leather materials to be used for
further shoe making by small scale local shoe makers, so that helps to avoid pollution
in the environment. The global shoes manufacturing industry is highly with many
firms perusing new markets around the world. This is attributed to the fact this type
of manufacturing has a high labor component. Shoes manufacturing is difficult to
totally to automate and is highly labour intensive. Manufacturers tend to contract
works to countries that have low labour cost or establish production facilities offshore
so will consider and use the locally available labour forces. And also through time by
maximizing our local market share diminish the imported shoe into our country.

What are the specific measures to sustain the project?

Scanning the external environment and working towards the strategy set by the
management of the project is critical and important. Above all the objectives and day
to day implementation of the project should be aligned towards the strategy. Carry
out performance measures regularly to evaluate the achievement against the target
will help to ensure sustainability and continuity of the project. To ensure this the
project has identified the Critical Success Factors (CSF) and Key Performance
Indicators (KPIs), so as to measure key performance areas which are covering both
financial and non-financial performances Identify challenges, problems and take
appropriate actions in addition to effective quality control. Due to the volatility
nature of the product i.e. the industry is largely influenced by customer trends &
fashions. The rising demand of the customer is also substantiated by research &
development team that can be tailored to satisfy customer needs. More over in the
second growth and transformation plan the leather and leather products industry is
expected to receive a special support from the government in the years to come. Thus,
the leather and leather products industry including leather shoes making to which
the project under consideration is the area earmarked for special support.

What are the linkages with other initiatives or reforms in the sector and other
development or governance concerns?

The most contributing factor to move towards a more globalized market is export
competition around the world increased in the past five years. The increasing

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liberalization of the international trade has also encouraged greater flows in imports
& exports manufacturing from developed nations have been unable to compete with
cheaper overseas import. It is expected that this trend will continue as the demand for
leather shoes increases and greater cost pressures are placed on manufacturers.

III. TECHNICAL/ENGINEERING PLAN


Location and site
The factory location is selected in Oromia Regional state East Shoa at Mojo town and
the site will be around the factory in which creates access to get finished leather raw
materials from various suppliers (Such as Mojo Tannery, Ethiopia Tannery, Dire
Tannery and Batu Tannery, etc.). And it is also an advantage to receive some
imported shoe accessories (such as outsole, insole, Fusebet, Shoe lace and others) &
Machine Spare Part from a nearby Mojo dry port.
Building
It is proposed that the area of the factory compound will be 5,000 to 5,500 Meter
square. The project is to build a factory, office building, canteen, clinic for staffs,
stores, etc. and the area required for building the above will be 2,450 meter square.
The Municipality of Mojo town will provide land at less lease cost for the project in
the near future. The leased price will be paid after 5 years grace period.
Production facilities
The factory will be located nearby Mojo dry port, so road accesses to Addis and
Adama will be easy and convenient to use the highway. Electrification is available
from Koka electric power generation plant and Adama Wind Farm. and will put a
backup system (buying a Generator) in case of electric break down.

Compressor will also be available to support the production process. (Screw Type
Compressor with 235 HP Motor, air supply 2300 lt/min)

IV. MARKETING PLAN


Customers are our key stakeholders and work hard towards fulfilling their
requirements and interests and will give due attention in reaching targeted customers
to buy the quality product that the project will produce with the help of Information
technology. Also we are planning that the market-product mix will consist of a ratio
70% mens & 30% Ladies shoe.
Product

The leather shoes that will supply to the markets are an export standard with good
looking features, comfortable, durable and ensure customers to obtain anywhere at a
reasonable price. Will use the latest technology and machinery and planned to
produce and sale 84,000 pairs of high quality mens and ladies shoes at the first
operational year. Though the production capacity is high and production will
increase by 10% per year to reach the full capacity of the factory at 123,000. Will
always keep our strategic competitive position ahead of our competitors by
Innovating and improving our production process and design new shoe features, so
that customers benefits by enjoying the value will receive from use of our products
(comfort ability example: by obtain better health from its use). We will work to
improve our production process, keeping quality standard optimally, so that help us
to reduce production and other costs and sell at a reasonable price.

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Pricing

Strategically the price will charge our customers are a reasonable one and matches
with the quality leather shoes products will offer. We price our product through
calculating the total production and administration costs plus considering reasonable
profit margins. The price compared to the market price of similar products competitive
enough and can help us to attract more customers and absorb market share. For the
purpose of this proposal an estimated average selling price of ETB 759 (USD 33.90 at
an exchange rate of 1 USD to 22.4 BIRR) has been assumed based on the production
costs calculated and profit margin set. Selling Price can be modified and adjusted
when required.

Promotion

The project has planned and decided to allocate 2% of its estimated revenue for
advertising, promotion and distribution to send messages to the target customers in the
market. The fund will be used wisely looking at all the promotion possibilities and
emphasis on using the effective media to reach the target market. Will use among the
following media with care and importance: television, web-site, newspapers,
magazines, directories, direct mail, cooperate and create linkage with wholesalers,
retailers or other business partners.

Distribution

Our main focus is to target and use the existing distribution channels and by
collaborating with Wholesaler, Retailers, etc and ensure our customers where they can
get our quality products.

Our customers can get our product as follows:

- Through our wholesalers and retailers which will signed cooperative


agreement in all regional cities, etc..
- Buy from the shops we have opened and factory site
- Direct order on our websites, so that they will get the product from the nearest
sales out lays.
- Will export the product abroad and will arrange distribution channels (Some of
the possible targeted counties are Sudan, Uganda and Kenya, in Afirca & also
Europe & North America)

The project will develop an information system which customers can access and
view the Inventory level and types of products, so that help customers to order
easily. The IS will be available online and can be accessed remotely with no
difficulty. Informations in regards to billing, payment methods, ordering and
shipping and return terms are available.

What are the costs associated with distribution?

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We will use the existing distribution channels through having cooperative agreement
with wholesalers in Addis Abeba and all regional state cities and others, etc. Budget of
Birr 600,000 allocated to facilitate this process. There are also Packing Material costs
such as carton, etc.

What are the delivery terms?

Our wholesales can collect the finished product from the factory outlet and will
arrange the suppliers to take from the shops which will open in Addis Ababa and
delivery also directly to their location.

How will the distribution methods affect production time frames or delivery? (How
long will it take to get your product or service to your customer?)

We will have management information system, website and provide our customers and
distributor access to the website, so that they can check our inventory level and order
directly. So that will deliver the shoes from the nearby shops within short period of
time.

V. RISK MANAGEMENT PLAN

What are the risks and factors that may hamper or hinder the successful
implementation of project activities and achievement of project outputs?

Ethiopia has a large resource base for production of hides and skins which are a main
raw material for the production of shoes manufacturing including leather products
.The quality of handling and the production process of hides and skin is critical to
meet export standard product. Timely supply of the processed finished raw materials
is also an issue which we have to take care and handle.

And also the unavailability of skilled and experienced manpower can hinder and
reduce the quality of shoes. International market penetration is also another factor

What are the measures that would mitigate the adverse effects resulting from such
risks?

To mitigate the above risks: 1) Will discuss with our supplier and make arrangement
to supply us on time quality processed finished raw materials by enter a contract
agreement; 2) If needed will provide advance cash payment to support them having
working capital. 3) Will train and update the skills of our employee when new
technology comes. 4) Create access to international market with the help of extranet,
internet facilities.

VI FINANCIAL ANALYSIS AND PLAN


This Section presents the economic & Financial Analysis of the project. These analysis
are based on the Investment, production, sales & other operational consideration.

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The production capacity of the project is set at 300 pairs of high export standard
mens and ladies shoes per day in one shift and the project costs and profitability is
estimated based on this assumption. Additional shift can be opened and operational
once the market conditions and opportunities are realized.

The Investement Requirement Is envisaged to be financed by equity & bank loan in


the proportion of _18.4% & 81.6% respectively. The Loan is expected to be secured
under the following terms
Interest rate 9.5 %
Principal & Interest repayment period quarterly
The Following rates are used in calculating depreciation & amortization expenses in
line with the applicable tax regulation of the country.
Building & Civil Work : 5% on a straight line basis
Other Fixed asset : 20% pooling
Computer : 25%
Preoperational Cost : 10%
*The sales are to be composed of export & domestic sales and comprises of 90%
domestic and 10% International market sales.
* Selling Prices are birr 759 per pair of shoes in the domestic market & USD 36 for
export for both types of shoes.
Amount in Birr

1. Total Revenue 63,718,931


2. Less: Total Production costs
Raw materials (See Annex B) 29,806,560

Direct Staff costs (Annex D) 3,148,316

Employee recruitment and uniform costs 2,999,200

Office supplies and stationery 300,000

Electric costs 2,700,000

Water costs 180,000

Advertising and distribution costs 1,325,000


Fuel for vehicles, generator and other running
costs 420,000

Shopes rental cost - in 4 locations 504,000


Communication costs (Email, Internet, mobile,
etc) 228,000

Factory overhead employee costs 548,864


Selling and distribution staff costs

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578,842

Administrative employee costs 1,524,371

Training costs, both overseas and in country 550,000

Management information system cost 1,200,000

Depreciation costs 6,297,630

Audit cost 115,000

Interest expense 673,327

Total costs 53,099,109

3. Total Profit (1-2) 10,619,822

Less: 30% profit tax 3,185,947

Net profit after tax 7,433,875

To evaluate the feasibility of the project will use Net Present Value methods to
access and evaluate if this project can be undertaken or not. The initial total cash
outlay is estimated to be Birr 43,449,355 of which Birr 35,449,355 will be financed
through medium term bank loan and borrow from Ethiopian Development bank at
a bank interest rate of 9.5% and the rest Birr 8,000,000 will be financed by the 5
(five) share holders in cash equally. So will evaluate the project using 9.5% cost of
capital as follows:

Assumptions: We assume that the project investments will be recovered within 5


years time and the return generated will exceed the investment cost. To access and
evaluate project worthiness we will use Net present value. WACC is assumed to be
the cost of capital rate at which the bank is lending. Year 1 net cash flow is taken
from Cash flow statement (Annex C) and the next 4 years net cash inflows will be
assumed to increase by 5% yearly. Working capital is required for year 1 only the
project will start operating with its own working capital thereafter.

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Evaluation of the project
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Initial cash out flows to
build factory and buy
machinery, computers, etc. -
(Annex D) 40,794,400
-
Working capital 2,654,955

Net cash inflows (Annex E) 10,767,750 11,306,137 11,871,444 12,465,016 13,088,267

Recovery of working capital 2,654,955

Add: Tax shield on interest KD(1-T) 471,329


-
Total value 43,449,355 10,767,750 11,306,137 11,871,444 12,465,016 16,214,551

Discount factor at 9.5%


(1+r)n 1.0000 0.9132 0.8340 0.7617 0.6956 0.6352

-
Present Value 43,449,355 9,833,561 9,429,443 9,041,931 8,670,345 10,299,932

Net present value 3,825,856

The net present value is positive. It means the project creates value for the plant, so it
is feasible to undertake and invest.

Pay back method can be used to evaluate projects, but its use is limited since it will
not consider the time value of money; however this method can be used for screening
projects at the initial processing stage.
From the figure above that to total cash out lay is Birr 43,449,355 and the net cash
inflows from year 1 to 4 is Birr 46,410,348. This means that the investment can be
recovered within 3 years, 8 months and 342 days.

VII. PROJECT ORGANIZATION AND STAFFING


Office/Staff Designated Responsibilities Contact Person Contact
Details
Factory General Manager Manage The Overall Assefa Wedaj N/R
Activity Of z co.
Executive Secretary Write Letters & Alganesh
Receptions Alemayehu lema
Find & Research
Finance Head Potential Customers Mintwab Kifle
HR and Admin Head Control & Properly Dejena Bulto

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Manage Payments,
receipts & Admin
employees matters
Respossible for Fitewie
Production Manager production of shoes G/Medhin
Handle the sales of
factory product and
Getachew Wubate
make available all raw Negash
materials required for
Sales & Procurement Head the factory
Drive the factory car
Driver and keep clean always Hagos Berehe

Drive the factory car


Driver Mohammed Alemu
and keep clean always
Drive the factory car
Driver Girma Bulcha
and keep clean always
Drive the factory car
Driver Gureme Abebe
and keep clean always
Drive the factory car Nebiat Kebede
Driver
and keep clean always Bekele
Keep store materials
Store man Negari Chala Abashu
and record properly
Handle procurement
of materials required Getahun Tsegaye
Purchaser
for the factory and Zerihun
office running
Handle the payment
process and filing of
Cashier and bookkeeper financial documents Markos Belachew
and handover to
General accountant
Drive the factory car Girma Chane
Driver
and keep clean always Temesgen
Handle all employee
Personnel Wegayehu Hailu
issue and files
Clean Factory area,
Cleaner office and the Tirengo Lemma
compound
Clean Factory area,
Cleaner office and the Hagera Melase
compound
Support employee by
providing food and Fasil Alemu T/wold
Canteen Staff others
Support supplies
Biniam Gizaw Feyisa
General Laborers section
General Laborers Support supplies Eyarusalem Tesfaye

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section Dejene
Store Clerk Update stock ledger Mengestu Teka ymam
Support supplies
Bezawit Daneal
General Laborers section
Store Clerk Update stock ledger Rediet Tadesse
Asfaw
Access factory
production process for
Kaizern Officer Demku Gudita Sime
improvement and cost
reduction
Support employee by
Haimanot Egihu
providing food and Mnda
Canteen Staff others
Control RM & FG &
Gemechu Daba
Messengers ReconcileWith Finance
Safe guard factory
Guard Yefru Abebe
compound
Safe guard factory
Guard Guta Mekonnen
compound
Safe guard factory
Guard Adugna Debelie
compound
Safe guard factory
Guard Dawit Zeray
compound
Safe guard factory Asmare Dibaba
Guard
compound Demse
Safe guard factory
Guard
compound
Cost factory products Tewedros Alemayehu
Cost & Budget Head
Zewde

Handle the general


General Senior Accountant account of the Amira Awol Habib
organization
Provide support head
Junior Cost Accountant Biruk Tadesse Reta
of cost and budget
Handle customer
request and process Naredose Kebede
Shop Sales
sales of factory Bekele
product
Shop Sales Same as above Alemenash Sereda
Debele
Shop Sales Same as above Kalekidan Keberat
Kebede
Shop Sales Same as above Zimita Atnaye Beri

Shop Sales Same as above Eyarusalem Yehayes


Demssie
Shop Sales Same as above Abebech Chaneyalwe
Tadese
Shop Sales Same as above Rukiya Jemal Ahmed
Shop Sales Same as above Mulumebet getnet
Shop Sales Same as above mekides yakob

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Cutting
Mens Upper Leather Cutting Process leather cutting Fiseha Dereje Kibret
Mens Upper Leather Cutting Process leather cutting Mesfin Silas Dola
Supervise process Fistum Belayneh
Production Forman leather cutting Zewde
Mens Upper Leather Cutting Process leather cutting Henok Tesfaye Tiba
Process leather cutting Asheber Workiye
Mens Upper Leather Cutting Beyene
Process leather cutting Mulualem Atenafu
Mens Upper Leather Cutting Yihun
Control quality of
Yosef Tilahun Tadese
Quality Controller leather cutting
Mens Upper Leather Cutting Process leather cutting Milion Tuffa Biru
Process leather cutting Yednakachew
Mens Upper Leather Cutting Hassen Mensur
Process leather cutting Tewedros Negash
Mens Upper Leather Cutting Adege
Mens Upper Leather Cutting Process leather cutting Fetene Zegeye hare
Handle preparation
Salyate Raya A/ali
Preparation & Closing and closing work
Supervise the
preparation & closing Selam Mikru Tegegn
Production Forman work
Handle preparation
Ayeda Kalayu Girmay
Preparation & Closing and closing work
Handle preparation Aberash Challa
Preparation & Closing and closing work Mideksa
Handle preparation Wubanch G/Medhen
Preparation & Closing and closing work Beyene
Handle preparation Nestanet Tezazu
Preparation & Closing and closing work Bekele
Handle preparation Tenagne Mamuia
Preparation & Closing and closing work Sahilu
Handle preparation Beletu Wondifraw
Preparation & Closing and closing work Feleke
Handle preparation
Vines Legesse Chala
Quality Controller and closing work
Handle preparation Hanna Bekele
Preparation & Closing and closing work Wanore
Handle preparation Meserat T/Tsadik
Preparation & Closing and closing work G/Giyorgis
Handle preparation Netsanet Fikerte
Preparation & Closing and closing work W/mariam
Handle preparation Nasere Mehadi
Preparation & Closing and closing work Mehamed
Handle preparation Haimanot Tegenge
Preparation & Closing and closing work Haile
Chief quality Controller Supervise and support Emebet
Merera.Gemechu
quality of process and

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product
Handle line stitching Tbebish Mekonnen
Mens Line Stitching work Sintayehu
Handle line stitching Roman Argaw
Mens Line Stitching work H/Meskel
Handle line stitching
Gadise Simie Degefu
Mens Line Stitching work
Handle line stitching Himanot Feleke
Mens Line Stitching work Habte
Handle line stitching Mame Lema
Mens Line Stitching work Chemeda
Handle line stitching Emebet Taye
Mens Line Stitching work Wegderes
Handle line stitching
Burenie Beyene Lomi
Mens Line Stitching work
Handle line stitching
Hirut Asefaw.Sine
Mens Line Stitching work
Handle line stitching
Meseret Korsa Wami
Mens Line Stitching work
Handle line stitching Alemnesh Worku
Mens Line Stitching work Abate
Handle line stitching Yrgalem Waltengus
Mens Line Stitching work Afsha
Supervise Henok Kumbi
Production Forman line stitching work Senbeto
Supervise
Ashenafi Bedada.Eda
Production Forman line stitching work
Handle line stitching
Esaite Demeke Haile
Mens Line Stitching work
Handle line stitching Etaferahu Gizaw
Mens Line Stitching work Belete
Handle line stitching Woinshet H/Silase
Mens Line Stitching work G/Tsadik
Supervise line Abebech Getahun
Production Forman stitching work Boren
Handle line stitching
Tsega Abebe Shedeta
Mens Line Stitching work
Handle line stitching Mechote Debebe
Mens Line Stitching work Mandefro
Handle line stitching Tigiset T/Woled
Mens Line Stitching work H/wold
Handle line stitching
Dinka Sele Bosfat
Mens Line Stitching work
Handle line stitching
Fasika Bedawi Lide
Mens Line Stitching work
Handle line stitching Negate Tena
Mens Line Stitching work Kelemework

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Handle line stitching Medehanit Bekele
Mens Line Stitching work Deresu
Handle line stitching Merone Tibabu
Quality Controller work G/medihn
Handle line stitching Tegest Kebede
Mens Line Stitching work Tesfaye
Handle line stitching Shawabeza Demisse
Mens Line Stitching work weyosa
Handle line stitching Yenanash Wareso
Mens Line Stitching work Tulor
Handle line stitching Meserat Bayessa
Mens Line Stitching work Degaga
Handle line stitching
Rahel Ashenafi Sima
Mens Line Stitching work
Handle line stitching Tseyon Gashaw
Mens Line Stitching work Legesse
Handle line stitching Zewditu Bogale
Mens Line Stitching work G/Mariam
Handle line stitching
Tejetu Gossaye Heye
Mens Line Stitching work
Handle line stitching Meserat Teshome
Mens Line Stitching work Daba
Handle line stitching Belaynesh Getachew
Mens Line Stitching work Desta
Handle line stitching Meseret Tesfaye
Mens Line Stitching work Mamo
Handle line stitching Belaynesh Abebe
Mens Line Stitching work Lobi
Handle line stitching Helina Gezaheng
Mens Line Stitching work Tadese
Handle line stitching Bruketaiet Eshetu
Mens Line Stitching work Demeke
Handle line stitching Atsede Sheferaw
Mens Line Stitching work Tadese
Handle line stitching Senayet Mikeru
Mens Line Stitching work Tegegn
Handle line stitching Lemlem
G/Egeziabeher
Mens Line Stitching work
Kidanu
Handle line stitching Tiegest Seyefu
Mens Line Stitching work G/mariam
Handle line stitching Tsehayenash
Mens Line Stitching work Kumash Aga
Handle line stitching Tseyon Girma
Mens Line Stitching work Tsegaye
Handle line stitching Emabet Assefa
Mens Line Stitching work Chabo
Mens Line Stitching Handle line stitching Meseret Worku
ambaw

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work
Handle line stitching Haregua Tegeng
Mens Line Stitching work Haile
Handle line stitching Zenash Getachew
Mens Line Stitching work G/mariam
Handle line stitching Zenabech Degene
Mens Line Stitching work Eshetu
Handle line stitching Meseret Aletaye
Mens Line Stitching work Bogale
Handle line stitching
Genet Tadele Gebru
Mens Line Stitching work
Handle line stitching Samueal Wonderad
Mens Line Stitching work Shewangizaw
Handle line stitching Mahelot Wasenu
Mens Line Stitching work kebede
Handle line stitching Meskerem Abera
Mens Line Stitching work shiferaw
Handle line stitching Wosena Bekele
Mens Line Stitching work Gadisa
Handle line stitching
Bankenesh chala
Mens Line Stitching work
Supervise finishing Endris Akmel
Production Forman operation section Muhamed
Mens Line Lasting & Finishing Carry out lasting & H/Micheal Shemales
Operators finishing operations Eshete
Mens Line Lasting & Finishing Carry out lasting & Wosena Tesfaye
Operators finishing operations Endris
Mens Line Lasting & Finishing Carry out lasting & Woinshet Akalu
Operators finishing operations Bekele
Mens Line Lasting & Finishing Carry out lasting & Hiwate Ahemad
Operators finishing operations Mehamed
Mens Line Lasting & Finishing Carry out lasting & Aberahme Terefe
Operators finishing operations Bogale
Mens Line Lasting & Finishing Carry out lasting &
Girum Belaye Areda
Operators finishing operations
Mens Line Lasting & Finishing Carry out lasting &
Yared Adnka Mane
Operators finishing operations
Mens Line Lasting & Finishing Carry out lasting &
Dagne Adugna Begna
Operators finishing operations
Mens Line Lasting & Finishing Carry out lasting & Abebech Kebede
Operators finishing operations Bedane
Mens Line Lasting & Finishing Carry out lasting & Armaneya Debesai
Operators finishing operations Debesay
Mens Line Lasting & Finishing Carry out lasting & Mareshet Bulbula
Operators finishing operations Salbani
Mens Line Lasting & Finishing Carry out lasting &
Meseret Taye Lakew
Operators finishing operations

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Mens Line Lasting & Finishing Carry out lasting & Bizunash Bogale
Operators finishing operations Tadese
Mens Line Lasting & Finishing Carry out lasting & Senayet Birehanu
Operators finishing operations Getahun
Mens Line Lasting & Finishing Carry out lasting &
Konjet Adugna Jema
Operators finishing operations
Mens Line Lasting & Finishing Carry out lasting &
Yeshi Sisay Kidane
Operators finishing operations
Mens Line Lasting & Finishing Carry out lasting &
Tigest Gizaw Feyisa
Operators finishing operations
Mens Line Lasting & Finishing Carry out lasting & Twabech Tadesse
Operators finishing operations Bedada
Mens Line Lasting & Finishing Carry out lasting & Mebrihe G/Yohannes
Operators finishing operations Tesfaye
Mens Line Lasting & Finishing Carry out lasting & Tadiyose Bedada
Operators finishing operations Gutema
Mens Line Lasting & Finishing Carry out lasting & Ashenafi Gizachew
Operators finishing operations Bekele
Mens Line Lasting & Finishing Carry out lasting & Amare Belay
Operators finishing operations W/Giorgis
Mens Line Lasting & Finishing Carry out lasting & Luelesegad Fayessa
Operators finishing operations Amda
Mens Line Lasting & Finishing Carry out lasting &
Debebe Chereka golo
Operators finishing operations
Mens Line Lasting & Finishing Carry out lasting & Meskerem Sheberu
Operators finishing operations Kasa
Mens Line Lasting & Finishing Carry out lasting & Aselefach Kebede
Operators finishing operations Gene
Mens Line Lasting & Finishing Carry out lasting & Etanesh Melese
Operators finishing operations W/semayat
Mens Line Lasting & Finishing Carry out lasting & Yenanesh Girema
Operators finishing operations Tinini
Mens Line Lasting & Finishing Carry out lasting & Dinkenesh Seyoum
Operators finishing operations Demse
Mens Line Lasting & Finishing Carry out lasting & Abenezer Shetaye
Operators finishing operations Aklilu
Mens Line Lasting & Finishing Carry out lasting & Esetifanos Abereham
Operators finishing operations Haile
Mens Line Lasting & Finishing Carry out lasting & Meheret Workeneh
Operators finishing operations Kebede
Mens Line Lasting & Finishing Carry out lasting & Etanesh Adege
Operators finishing operations Alemu
Mens Line Lasting & Finishing Carry out lasting & Tegest Adunga
Operators finishing operations Serbesa
Mens Line Lasting & Finishing Carry out lasting &
Telahun Ourga Gebre
Operators finishing operations
Mens Line Lasting & Finishing Carry out lasting & Zenash Yetagesu
Tekle

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Operators finishing operations
Mens Line Lasting & Finishing Carry out lasting &
Dereje Shagena Edo
Operators finishing operations
Mens Line Lasting & Finishing Carry out lasting &
Ermiyas Eshetu Taye
Operators finishing operations
Carry out design of
Designers normal and fashion Robel Kidanu Chekol
shoes
Control the quality of
the shoe production Zinash Ayenachew
process and product Beyene
Quality Controller quality
Ensue proper function
Getachew Wubate
of factory machines, Negash
Chief Mechanic vehicles, etc.

VIII PROJECT WORK PLAN

PHASES ACTIVITIES OUTPUT / INDICATORS PERSON RESOURCES COST


OF THE TARGET IN NEEDED
PROJECT CHARGE
(DATE)
1 January Factory Will be Is the design Consultant Contribution 150,000
17 15 Design prep. completed completed and by share
February within 1 received as holders
2017 and half planned?
month
time
16-28 Approval of The design Is the design General N/R 2,000
February design should be meeting the Manger
2017 per requirement?
standard
1 31 Identify Identify Is there clear Commerci 5,000
March supplier & the right documentation al manager
2017 order for the supplier on the selection and
delivery of the of the supplier? Factory
machinery Manager
15 March Factory Completed Evaluate against 12,550,000
to 31, building per the the work plan
October work plan
2017
1 June 2016 Import the Should Evaluate if the Marketing 12,019,400
machinery reach the machinery has manager
factory been received
within 2 per the plan
month
time
15 Erection of the Are all Check if all Technical 1,300,000
September machinery machinery machine is Manager

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to 15, erected? operational
November
2017
21 October Test the Are they Conduct actual Technical 100,000
to 30 machinery working operation Manager
November and meet
2017 the
standard
15 Employee Right Are all post HR and 50,000
October to recruitment employee filled in Admin
21 should be Manager
November selected
2017 for the
right place
1 21 Employee Are all Factory 550,000
December training employee and
2017 received the Technical
required Manager
training? Take
feedback
through
questionnaire

**Note: Include Gantt chart if possible

IX DETAILED BUDGET REQUIREMENT

Budget Description Amount Proposed Total cost


Line Needed Source/s
Item
1 Cutting Cost Section
1.1 Cutting machine 22 tons capacity 10 1,435,700

1.2 Cutting machine 27 tons capacity 3 455,300

1.3 Cutting board planning machine 2000mm 1 469,600

Sub Total 2,360,600


2 Stitching Cost Section
2.1 Light complete support for cutting 13 46,200
machine

2.2 Magnetic light for all sewing machine 46 54,500

2.3 Tool for buffing machine to rough box 2 39,810


soles

2.4 Brushing machine for polishing shoes' 1 86,400


edge with speed variator

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2.5 Double thread sewing machine for box 2 736,300
soles shoes or boots

2.6 Equipment for air bell press for ladies 3 7,650


shoes

2.7 30 meter Conveyor for upper 2 1,609,700


preparation(Complete set)

2.8 Skiving machines 4 117,600

2.9 Splitting machine 1 341,850

2.10 logg printer 2 62,060

2.11 Lining Stamp 2 86,800

2.12 Folding machine 2 252,500

2.13 Cylindrical sewing machine with bending 2 71,000


attachment

2.14 Trimming machine 2 110,450

2.15 Reinforcement application machine 2 188,300

2.16 Hammering machine 2 92,100

2.17 Eye letting machine 2 126,250

2.18 Zigzag sewing machine 2 59,200

2.19 Toe puff applying machine 2 71,000

2.19 Rotary machine for fabric lining 2 168,300


application

2.20 flat bed single needle sewing machine 2 28,950

2.21 Vertical sewing machine with single 24 802,100


needle

2.22 Vertical sewing machines with double 12 448,400


needle

2.23 Thread burner 4 126,300

2.24 Hand press 2 3,990

2.25 Heavy duty post bed sewing machine 2 71,370

2.26 Upper shaping machine 2 417,560

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Sub Total 6,226,640

3 Finishing or Lasting Cost Section


3.1 30 meters conveyor for shoes assembling 1 1,048,500
(complete set)

3.2 Insole applier machine 1 59,200

3.3 Back part molding machine 1 178,810

3.4 Premounting machine Cerim Mod. K78sz 1 709,960

3.5 Humidifier for toe puffs with two working 1 118,330


posts

3.6 Nail half sock mounting machine cerim 1 374,700


mod CK123

3.7 Half sock humidifier with three posts 1 55,300

3.8 Ironing oven 1 216,950

3.9 Ironing module complete with two 1 10,350


stainless steel

3.10 Thermo ironing machine 1 74,550

3.11 Brushing machine 2 126,220

3.12 Buffing machine 2 114,200

3.13 Gluing table 2 47,330

3.14 Burner for reactivation of the glue 2 156,250

3.15 Air bell press for soles 3 664,850

3.16 Pneumatic box printer 1 51,280

3.17 Pneumatic last extractor 1 33,690

3.18 Insole neoprene gluing machine 1 27,610

3.19 Thread burner 1 31,560

3.20 Spraying cabin complete with aerograph 1 74,420

3.21 Upper shoe assembling and gluing table 10 34,660

3.22 Manual last extractor 3 11,140

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3.23 14 meter conveyor for shoes finishing 1 612,300
(Complete Set)

Sub Total 4,832,160


Grand total 13,419,410
X OTHER RELEVANT INFORMATION

May include any other information that will support the request for funding,
such as:
Brief enumeration of other stakeholders who pledged support to the
project
Other projects that are lined-up to complement the current initiative.

XI ATTACHMENTS

Profile/brochure of the organization


Endorsement and recommendation letters
Other documents to support the proposal

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