Technical analysis

Technical analysis
Broad purpose of technical analysis is: Ensure project is technically feasible i.e all inputs required to set up the project are available Facilitate most optimal formulation of projects

Manufacturing process technology

1 Choice of technology plant capacity principal inputs Investment outlay and production cost Use by other units product mix Latest developments Ease of absorption

2. Appropriateness of technology

Whether technology utilises local raw material Whether technology utilises local manpower Whether technology protects ecological balance

Technical arrangements
Nature and support provided by the collaborators process and performance guarantees price of technology Benefit of research and development period of collaboration Assistance to be provided by the collaborator Level of equity particiation,management control Assignment of agreement incase of change of ownership Termination of agreement

Material inputs and utilities

1.Raw materials Agricultural products Mineral products Livestock and forest products Marine products

processed industrial materials and components Auxiliary materials and factory supplies Utilities

product mix
production of most of the items, variations in sizes, quality to satisfy customers. Flexibility w.r.t product mix should be sought Enables firm to alter product mix in response to market conditions

plant capacity
Technological requirements Input constraints Investment cost Market conditions Resources of the firm Governmental policy

Location and Site

proximity to raw materials and markets Availability of infrastructure Labour situation Governmental policies Other factors climatic conditions general living conditions proximity to ancillary units ease in coping pollution Site selection

Machineries and equipment

procedure for machinery selection: Estimate likely levels of production Define various machining and other operations Calculate machine hours required Select machineries required for each function

Constraints in selecting machineries and equipment

Limited availability of power Difficulty in Transporting heavy equipment Workers may not be able to operate in initial periods

procurement of plant and machinery

Structures and civil works

Site preparation and development Buildings and Structures Outdoor works

Environmental Aspects

project charts and layouts

General functional layout Material flow diagram production line diagram Transport layout Utility consumption layout Communication layout Organizational layout plant layout

Schedule of project implementation

Information required for preparing project implementation: List of possible activities from project planning and commencement of production Sequence of activities Time required for activities Resources for performing activities Implementation for putting more or less resources

Schedule of project implementation

Work schedule Anticipate problems likely to arise during installation phase and possible means to cope with them Establish phasing of investments Develop plan of operations

Need for considering alternatives

Nature of project production process product quality Scale of operation and time phasing location

Key roject inter -linkages