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CHAPTER 5 TECHNICAL ANALYSIS

CHAPTER 5 TECHNICAL ANALYSIS. Outline Manufacturing Process / Technology Technical Arrangements Materials and Inputs Product Mix Plant capacity Location and site Machineries and equipments Structures and Civil Works Environmental Aspects

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CHAPTER 5 TECHNICAL ANALYSIS

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  1. CHAPTER 5 TECHNICAL ANALYSIS

  2. Outline • Manufacturing Process / Technology • Technical Arrangements • Materials and Inputs • Product Mix • Plant capacity • Location and site • Machineries and equipments • Structures and Civil Works • Environmental Aspects • Project Charts and Layouts • Project Implementation Schedule • Need for Considering Alternatives

  3. Manufacturing Process/Technology • For manufacturing a product / service often two or more alternative technologies are available . The choice of technology is influenced by a variety of considerations: • Choice of Technology • The choice of technology is influenced by a variety of considerations • Plant capacity • Principal inputs • Investment outlay and production cost • Use by other units • Product mix • Latest developments • Ease of absorption

  4. Technical Arrangements Satisfactory arrangements must be made to obtain the technical know-how needed for the proposed manufacturing process. When collaboration is sought, inter alia, the following aspects of the agreement must be worked out in detail.

  5. Material Inputs and Utilities An important aspect of technical analysis is concerned with defining the materials and utilities required, specifying their properties in some detail, and setting up their supply programme. Materials and utilities may be classified into four broad categories: • Raw materials • Processed industrial materials and components • Auxiliary materials and factory supplies • Utilities

  6. Product Mix

  7. Plant Capacity

  8. Location and Site Location refers to a broad area; site refers to a specific piece of land. The choice of location is influenced by a variety of considerations: • Proximity to raw materials and markets • Availability of infrastructure • Labour situation • Governmental policies • Other factors

  9. Machineries and Equipment

  10. Structures and Civil Works Structures and civil works may be divided into three categories: • Site preparation and development • Buildings and structures • Outdoor works

  11. Environmental Aspects The environmental aspects of projects have to be properly examined. The key issues that need to be considered in this respect are:

  12. Plant Layout The important considerations in preparing the plant layout are:

  13. Schedule of Project Implementation As part of technical analysis, a project implementation schedule is also usually prepared. For preparing the project implementation schedule the following information is required:

  14. The Need for Considering Alternatives There are alternative ways of transforming an idea into a concrete project. These alternatives may differ in one or more of the following aspects: • Nature of project • Production process • Product quality • Scale of operation and time phasing • Location

  15. Key Project Inter-linkages Product / Service Demand Size Technology Location Selling Price Production Costs Financial Requirements Investment Outlay Profitability

  16. SUMMARY

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