Introduction
Motor vehicle service is a series of maintenance procedures carried out at a set time interval or after the vehicle has travelled a certain milage. The service capacity is 8 cars per day; total capital investment is estimated at US$4,760 per year and estimated revenue is US$ 102,960 per year.
Clean-out is accomplished by applying suction near the top of the oil layer in the first compartment until it is completely removed, then proceeding directly to the sludge layer and removing the same. The intermediate water layer is left to act as a seal. The other chamber(s) should also be checked to ensure no significant quantity of oil or sludge is present.
Capital Investment Requirements
| Capital investment item | Units | Qty | @ $ | Amount $ |
| Compressor | No. | 1 | 1,250 | 1,250 |
| Service tunnel | No. | 1 | 2,000 | 2,000 |
| Cc pump | No. | 1 | 150 | 150 |
| Tool box | No. | 1 | 1,250 | 1,250 |
| Grease pump | No. | 1 | 100 | 100 |
| Spray gun | No. | 1 | 10 | 10 |
| TC on equipment | 4,760 |
Servicing and Operating Costs
| Cost Item | Units | @ | Qty/ day | Pdn cost/ day | Pdn cost/ month | Pdn cost/ year |
|---|---|---|---|---|---|---|
| Oil | Ltrs | 3 | 8 | 24 | 624 | 7,488 |
| Brake fluid | Ltrs | 8 | 2 | 17 | 450 | 5,400 |
| Oil Filter | Pieces | 4 | 2 | 9 | 225 | 2,700 |
| Coolant | ltrs | 8 | 2 | 12 | 300 | 3,600 |
| Fuel Filter | Pieces | 1 | 20 | 20 | 520 | 6,240 |
| Battery water | Ltrs | 5 | 2 | 8 | 200 | 2,400 |
| Sub–total | 36 | 89 | 2,319 | 27,828 | ||
| General costs(overheads) | ||||||
| Utilities (water and power) | 400 | 4,800 | ||||
| Labour | 900 | 10,800 | ||||
| Rent | 350 | 4,200 | ||||
| Administrative cost | 300 | 3,600 | ||||
| Miscellaneous costs | 200 | 2,400 |
| Cost Item | Units | @ | Qty/ day | Pdn cost/ day | Pdn cost/ month | Pdn cost/ year |
|---|---|---|---|---|---|---|
| Depreciation (Asset write off) Expenses) | 99 | 1,190 | ||||
| Sub –total | 2,249 | 26,990 | ||||
| Total Operating Costs | 4,568 | 54,818 |
- Serving costs assumed 312 days per year with a daily capacity of 8 cars Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets
Project product Costs and Price Structure in US $
| Item | Qty/day | Qty/ yr | @ | Pdn cost /yr | UPx | TR |
| Big cars | 2 | 624 | 44 | 27,409 | 75 | 46,800 |
| small cars | 6 | 1,872 | 15 | 27,409 | 30 | 56,160 |
| 2,496 | 102,960 |
Profitability Analysis
| Profitability Item | Per day | Per month | Per Year |
| Revenue | 330 | 8,580 | 102,960 |
| Less production and operating Costs | 176 | 4,568 | 54,818 |
| Profit | 154 | 4,012 | 48,142 |
Market Analysis
Serving a vehicle is mandatory to all owners of cars. The market is in both urban and rural areas since motor vehicles work in both areas. The quality of service would influence the market. Sources of Raw Materials Consumables can be found in motor vehicle spare parts shops. Government facilities and incentives The government has favorable tax policy incentives. There is assistance through organization like Private Sector Foundation Uganda where small scale firms and medium sector enjoy partial financing on development initiatives.
