Summary
NoveaCleanings (Pty) Ltd: Company and Operational Overview
Highlights
Company Overview
Established in 2015, NoveaCleanings (Pty) Ltd is a South African manufacturer and distributor of household cleaning products, primarily bleach and all-purpose cleaners. The company currently serves supermarket chains, wholesalers, retailers, hospitality businesses, and cleaning providers, operating mainly in Gauteng. Strategic expansion plans include establishing a new manufacturing and distribution facility in Gqeberha to increase capacity, improve supply chain efficiency, and reduce transportation costs. The core organizational structure includes sales, production, and finance departments, supported by procurement, warehouse, and distribution units to facilitate data-driven planning and budgeting.
Operational Overview: Raw Materials
The company prioritizes 100% locally sourced raw materials to ensure high quality and competitive pricing.
Existing Gauteng-based suppliers will be utilized for the Gqeberha branch to maintain consistent product quality.
Management acknowledges incremental logistics costs for transporting materials between regions.
The procurement department oversees purchasing and transportation, with materials stored on-site upon receipt.
Production Process
Production occurs on-site and follows five defined stages: material preparation, mixing based on formulations, quality control/testing, packaging (filling, capping, labeling), and storage/distribution.
Production is batch-based, with one batch per product per shift (day and night).
Each shift requires a one-hour period for machine setup and cleaning.
Labor and Staffing
Production staff consists of 10 workers split evenly between day and night shifts, categorized as direct labor.
Supervision includes two supervisors per shift reporting to the production manager, treated as manufacturing overheads.
The distribution center employs four warehouse workers and two drivers, also classified as manufacturing overheads.
Administrative support includes an HR manager and two clerks, recognized as administrative costs.
Manufacturing Overheads
Major overhead costs include rental of the Gqeberha Deal Party facility, utilities (allocated by liters/kWh per unit), machinery depreciation, maintenance costs, and insurance for the building, stock, and raw materials.
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Company Overview
The Company NoveaCleanings(pty)Ltd is an established South African company which commenced its operations in 2015 that produces household products. It operates as an manufacturer and distributor of household cleaning products where the main category of household products sold include bleach and all purpose cleaner which are manufactured and distributed to the listed catalogue of customers; supplying supermarket chains, wholesalers and independent retailers, hospitality businesses and cleaning providers.. Operations are predominantly provincial while touching surrounding provinces with intentions of becoming national as products are distributed mainly in the Gauteng Province and its surrounding provinces with plans to expand operations throughout the rest of the 9 provinces by establishing a manufacturing and distribution facility in Gqeberha to accommodate customer growth and Long term strategies to increased production capacity, improve supply chain efficiency ,reduce transportation costs and strengthen the position of the company within the manufacturing sector. The main departments of the company includes sales department, Production department and finance departments as the departments deals with information which is crucial in terms of decision making In the entity as such information produced is used to produces sales budgets , production budgets and overheads budgets which will be used by the management accountant and CFO for the planning process of decision making. Other subsidiary departments such as Procurement, warehouse and distributions exists to help in the execution of achieving objectives of supply chain efficiency and reducing transportation costs.
Operational Overview
Raw materials
· To compliment the company’s operations as an 100% South African Company, locally sourcing raw materials to produce households products manufactured is the best way to ensure manufacturing high quality and competitively priced products.
· Raw materials for the Gauteng manufacturing and distribution Centre are purchased at a supplier around the Gauteng Province. For the Gqeberha Branch the same supplier will be used to prevent the risk of using a new supplier which leads to inconsistent product quality.
· There will be incremental costs relating to the logistics of transporting raw materials from Gauteng to Gqeberha.
· Procurement department will be responsible for the requesting and purchasing and transportation of raw materials for the Gqeberha site.
· Different raw materials will be purchased for each product and once received will be stored in the manufacturing site at a storage room.
Production Processs
· The production process will take place in the manufacturing site where raw materials to be used will be moved from storage room to production machines.
· Production stages consists of 5 stages :
o Raw materials preparation where materials received and measures
o Production -where materials are mixed sccording to profuct formulate
o Quality control – where testing and approvals of finished batch
o Packaging- fill, cap. label and pack products
o Storage and distribution
· Products will be produced in batches- in a normal day for day shift 1 batch produced for each product and same for night shift
· During Each shift a change of machine setups and cleaning of 1 hour will be required
Labor
· The company will consist of at total of 10 production workers which will be split between day and night shift evenly(5 day,5 night)based for the production, quality control and packaging stages and
· Wages related to production workers will be recognized as direct labour based on direct labour hours
· 2 supervisor allocated per shift (2 day, 2 night) which report to the production manager.
· The distribution Centre will consist of 4 general warehouse workers plus 2 drivers
· Administration will consists of 2 clerks doing general admin and support to the HR manager
· wages & salaries for supervisors, Warehouse general workers and drivers recognized as manufacturing overheads,
· Human resources manager and admin clerks salaries recognized as Administration costs
Manufacturing overheads
Major overheads include:
· Building where manufacturing and distribution will take place will be an rented building in Gqeberha Deal Party
· Electricity/water bill which will be allocated to cost object using Litres used per item and Khw used per unit
· Depreciation of machinery used in production
· Maintenance costs for the whole manufacturing side of building allocated to products appropriately
· Insurance for building and any damaged stock produced and raw materials