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1. The Product
a. What is the product and what is it used for?
b. A technical description for each product accompanied with sketches,
photographs of each type; sizes or samples if possible.
c. If not manufactured entirety, what parts are to be bought ready made?
d. Are the products complete finished and ready to use when leaving the
factory, or is further work needed outside the factory (e.g., erection,
assembly into a complete unit)?
e. Are there any Saudi or international standards that the product must comply
to? What are their details? These specifications should describe raw materials
used, the final product and should specify testing and quality control methods.
f. Specify number of units in a package and specify wrapping cartons, boxes,
pallets etc …
g. Are the products entirely new or similar to existing products in the market?
Are they capable of being modified if required?
2. The Process
a. A description of each operation in the process from raw material to finished
product. This should specify the function of each piece of equipment needed
(e.g., press to form curved metal shapes; steam boiler for heating or drying or
curing; tanks for storage, pumps and pipe lines).
b. A flow diagram showing the route of each piece of raw material through its
various processes.
c. A scaled and dimensioned layout of equipment and machines within the factory
showing storage areas for raw materials, work in progress, finished products,
maintenance workshop, laboratory etc..
d. This plan of the layout should show the number of men at each piece of
equipment during a production shift. This staffing distribution should be in
line with the numbers of workers of different degrees of skill provided
subsequently in the list of workers and salary requirements.
e. Special equipment for waste treatment must be described (incinerators for
burning; liquid effluent treatment plants; air filtration).
f. Specific internal factory environment controls vital to the process must be
explained. For example, processing of paper and textiles requires strict
atmospheric control. Processing of food requires hygienic safeguards; toxic
chemicals require safety procedures for workers and the general public; highly
inflammable materials require special concentration on fire protection. The
cost of providing these safeguards will ultimately appear in either building or
equipment costs.
g. Explain the measures taken to treat the factory waste whether gas, liquid or
solid in order to make it meet the specifications set out by relevant
Government Authorities such as the Presidency of Meteorology and Environment ,
Royal Commission of Jubail and Yanbu and the Industrial Cities Offices.
3. Installed Capacity
a. Indicate the installed capacity of the machinery as contracted with
supplier. Show detailed calculations of this capacity and the basis on which it
was built (e.g. for the production of 1,000 small units of product “A”
and 100 large units of product “A” a year). The capacity of each piece of
machinery should be specified.
b. The proposed hours per day and days per year must be provided in relation to
these quantities. The build-up to installed capacity in terms of years must be
projected from the start of commercial production of the factory.
4. Machinery & Equipment
a. A complete detailed list of machinery and equipment must be provided.
b. Each item must be itemized by manufacturer, type, model, weight and whether
or not it is being obtain through a third party. Descriptive pamphlets are
required.
c. Each item must be priced CIF nearest port, either by direct invoice if
already purchased or by pro-forma invoice. Additional sums for local carriage
and erection should be shown. Lump sums for turnkey projects will not
be accepted.
d. Where a final choice of item has still to be made, information about the
various alternatives should be given.
e. Special equipment for fire fighting, air conditioning, water treatment,
safety precautions, standby generators, laboratory equipment etc., can be
itemized under the general heading here unless already covered under building
estimates.
f. Internal factory cranes, pallet trucks, mobile cranes; gantry cranes,
monorails and other fixed lifting structures should be itemized under the
heading above.
g. Adequate spare parts for at least the first year of operation must be made
included.
h. Three competitive quotations for the machinery and equipment are required.
Detailed information and technical specifications must be included. Catalogs
for machinery must also be included. Of the three quotations, that selected
quotation must be identified and reasons for the selection must be explained.
5. Buildings
a. A location plan of the site in the appropriate city or industrial area.
b. A site plan showing the site boundaries, adjacent roads and the position and
size of all buildings on the site. Proposed supporting buildings, internal
roads and parking spaces must be shown.
c. A site plan showing the positions of connection points to main utilities
(sewage, water, power).
d. Drawings of buildings giving plan areas, elevations and cross sections.
These drawings should clearly indicate the methods and materials of
construction of the buildings, floors and foundations.
e. A brief specification of the main features of the buildings is required.
f. A drawing showing all loss and fire prevention equipment and safety measures
to guarantee the safety of the project and its workers from the danger of fire
or any other dangers that the project may face.
g. Quotations for civil works and buildings must be obtain (at least three
offers of a detailed specification or a bill of quantities). Lump sum offers
are not acceptable.
h. In case the building and civil works quotation does not include land
preparation costs, separate quotations must be provided to include, for
example, the following;
- Site clearing
- Excavation
- Infilling
- Any other special work related to land preparation.
6. Transportation
A list must be prepared of all the required transport vehicles including
distribution and delivery trucks, employee cars, staff buses, fork lifts, etc.,
An explanation of the need for such vehicles must be provided bearing in mind
that the required vehicles must be in line with the qualities of products
expected to be distributed in the initial years of operation and the areas of
the products will be distribution in. The Fund has some limitations on certain
types of vehicles financing.
7. Furniture & Office Equipment
A list must be drawn up of office furniture and equipment required including
office furniture, computers, telephone system, canteen equipment and furniture,
typewriters, copying machines, etc.
8. Labor
a. In addition to the layout plan showing factory operatives? work stations
(Section 2d), a complete list of all persons employed by the company is
required. This must give job titles basic monthly salaries and all additional
expenses for social security, [staff travel] travel, accommodation, bonuses
etc.,
b. The source of the factory labor force should be specified (expatriate,
local).
c. Procedures for training people must be described and a plan for recruiting
Saudis must be provided.
9. Raw Materials
a. A list of each different type of raw and packing material must be provided.
This list should show the sources or alternative sources of purchase with both
current unit cost prices and those expected in the first year of start up.
Three raw and packaging material quotations must be provided.
b. The list must include both raw materials for manufacture and items bought in
as finished goods (pumps, brackets, hinges, locks, cartons, etc.,).
c. A detail calculation of raw and packaging materials for each single unit of
the product must be provided. The Calculations must show the quantities
required for every raw material and its cost.
d. The annual consumption of these materials related to licensed output must be
provided.
e. A reasonable allowance for wastage in processing should be made and the
amount specified.
f. A description of the pattern of buying should deal with bulk purchases of
imported items to overcome delivery delays or to foresee price fluctuations
with corresponding estimate of stock holding.
10. Utilities
a. Requirements for water must be provided its source, type, quantity and its
cost.
b. Electrical energy requirements for equipment, machinery, lighting, air
conditioning, etc. must be provided in terms of power (KVA) and running hours.
The source must be provided (town supply, independent generator or mixture of
both).
c. Fuel quantities required for manufacturing and operation (for example, steam
boilers, electricity generators, vehicles, etc.) must be provided.
11. Licensing Agreement
a. A copy of any technical or licensing agreement between the sponsor and
another company is required.
b. The agreement should clearly state front fees agreed and annual fees based
upon sales, output, profits, or other relevant measures.
c. The agreement should clearly define the extent of participation by the
licensor in technical management, technical services for installation,
commissioning and maintenance, drawings and know-how with details of proposed
changes to these.
12. Pre-Operating Expenses
a. Payments to architects, consulting engineers and designers, legal expenses
and other professional services required to plan the enterprise are to be
stated. Fees for feasibility studies must also be provided.
b. Estimates of all other costs leading up to plant operation should be
included, such as salaries, visits abroad for purchase of equipment, raw
materials used for trial runs, etc.
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