EXECUTIVE SUMMARY
This particular pre-feasibility is for setting up an ‘Engineering Workshop - Subcontracting’ in any industrial cluster of any major city of Pakistan. Engineering Workshop – Subcontracting falls in the segment of light engineering sector. The workshop is proposed to cater to machining work on parts for electrical home appliances, pumps, and other engineering products. Most subcontracting workshops are part of small and medium scale industry and are operating in cities like Peshawar, Lahore, Gujranwala, Faisalabad, Karachi etc., as a service provider.  The workshop is proposed to operate 8 hours daily. The maximum jobs for the project are assumed to be 30,000 per year. The business will provide employment opportunity to 3 individuals including the owner manager.  The total project cost for setting up this workshop is estimated at Rs. 1.70 million.
CRITICAL FACTORS
Following are the factors critical for success of this business venture: 
• Technical know-how and relevant experience of entrepreneur.
• Availability of skilled labour having technical knowledge.
• Ability to generate work orders through industrial networking, direct marketing and negotiating long term contracts.
• Utilization of job costing and job card with technical specifications sheet. 
7 BRIEF DESCRIPTION OF PROJECT & PRODUCT
Engineering Workshop – Subcontracting, will not manufacture its own products, instead it will provide job work facilities to the light engineering sector. This practice is prevalent in the majority of such workshops. The workshop will provide services to the manufacturers of electrical home appliances, pumps, textile sector, machinery repair shops, auto part makers, etc.  This business activity is more suitable for an entrepreneur with mechanical technology background. The prospective entrepreneurs are also recommended to have previous workshop floor experience. Major capital investment is in the procurement and installation of lathe, shaper and cylindrical grinding machines.  The workshop will provide machining facility for engineering products such as washing machines, electric motor rotor shafts. A variety of machining services can be carried out on the machinery set proposed under this project, however, for the purpose of calculating cost and revenues, work equivalent to electric motor shaft L18” x D½” has been taken as a standard item. The workshop will require services of two machinists and one helper to carry out requisite job orders. The business will be setup in rented premises, having covered area of 400 sqft.
INSTALLED & OPERATIONAL CAPACITIES
The installed capacity of the project is to perform 30,000 jobs per year. During the first year it will operate at 70% capacity and perform 21,000 jobs. The total human resource strength will be 3, including the entrepreneur / owner. The workshop will operate for 8 hours daily.
GEOGRAPHICAL POTENTIAL FOR INVESTMENT
The subcontracting workshop clusters are mostly being operated near industrial areas of Lahore, Peshawar, Quetta, Faisalabad, Karachi, Hyderabad and Gujranwala etc. The ideal location for the project may be outside municipal and cantonment limits, preferably in a small industrial cluster / estate. Other options could be near an industrial complex like large fertilizer, oil or power units off major highways.
POTENTIAL TARGET MARKETS / CITIES
The potential target markets are local clusters of home appliances manufacturers, and electrical pumps manufacturers. The suitable cities for marketing can be Gujranwala, Gujrat, Lahore, Faisalabad Karachi, Hyderabad, Peshawar, Gilgit and Quetta.