Assessment of the Project Feasibility Study of Laundry Machine in Case of Shambu Campus of Wollega University

P.A.K. Reddy


Laundry/washing machine facility is one of the service areas that students and other university community members would like to get nearby their campuses. Despite its old age and the high number of its community, Shambu campus of Wollega University has not yet availed laundry/washing machine service to its community members. This study investigates the economic and technical feasibility of installing a laundry/washing machine service in the Shambu campus of Wollega University. The project aims at solving the current problem that students face in washing their clothes which is crowded, time taking, tiresome, and inefficient. In addition, the project will generate additional revenue to the University itself or to the credit association of the university whoever is pursing in the investment activity. The project is generally environmentally friendly and proper sewerage system will also be constructed to remove all waste produced in the business. Out of 1500 regular residing students of the Shambu campus, 270 were randomly selected to participate in the survey. 70% of the participant students have expressed that the service is important to them and are ready to pay a reasonable amount for the service. As most students have stressed their concern on the affordability of the service due care has been given to set a price which is fair and affordable to most of them. From a field survey of the price that janitors charge students and from the questionnaires distributed, a price of Birr 2.00 per kilogram seems affordable to the students and also acceptable to the investor. The total annual demand determined through the market survey is about 294179 kilograms of clothes. With respect to manpower, the project is not as such labor intensive. However, to safeguard mishandling and misuse of the machines and to provide efficient service, about seven employees are required in the project. Finally, the project requires the commitment of some resources for proper implementation. The university management has to look at the proposal and give consent on the implementation of the project. In addition, procuring the machines and equipment, installing the machines, constructing the building and other civil works, and many other activities require some time.

Keywords: Feasibility study, Laundry machine, Wollega University, Project

DOI: 10.7176/RJFA/10-11-05

Publication date:June 30th 2019

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