The best mechanism for handling transmission poles at impregnation plant at fibreboard Africa limited
Mwamakimbullah, R.J.L|Hamza, K.F.S / 2000

Six possible mechanisms for handling logs and timber at impregnation plants have been examined in this study with the aim of determining the best option for the impregnation plant at Fibreboards Africa in Arusha. The six mechanisms denoted as alternatives were as follows: alternative one: full mechanised 4WD front end loader, alternative two: a pair of oxen and a wagon, alternative 3: a pair of sulkies and oxen, alternative four: a pair of sledges and oxen, alternative five: a farm tractor with a wagon and alternative six: a combination of a pair of sulkies and oxen plus a pair of sledges with oxen. Alternatives two to six also worked with a stationary cable line at the impregnation plant. The alternatives were subjected to costs analysis and the following indicators were calculated: internal rate of return on investment (IRR), net present values (NPV), break even point(BEP), return on investment (ROI), pay back period (PBP), and contribution margin ratio (CMR). The alternatives were then ranked according to their economic performance for each financial indicator. Alternatives four and one were found to be in the first two ranks. Using IRR as the determining financial indicator the alternatives four and one were subjected to sensitivity analysis to find out which was the best option in an unstable business environment. Alternative four which uses a pair of sledges and oxen was found to be the best. The sensitivity analysis further indicated that both alternative four and one were sensitive to price changes and less sensitive to costs of investment and changes in variable costs. It is recommended that alternative four should be adopted for handling transmission poles at the impregnation plant at Fibreboard Africa Ltd.