TECHNICAL ANALYSIS

TECHNICAL ANALYSIS:

TECHNICAL ANALYSIS 1

MANUFACTURING PROCESS / TECHNOLOGY:

MANUFACTURING PROCESS / TECHNOLOGY Choice of Technology Plant Capacity Principal Inputs Investment Outlay and Production Cost Use by Other Units Product Mix Latest Developments Ease of Absorption 2

MANUFACTURING PROCESS / TECHNOLOGY:

MANUFACTURING PROCESS / TECHNOLOGY Appropriateness of Technology Whether the Technology Utilizes Local Raw Materials? Whether the Technology Utilizes Local Man Power? Whether the Goods and Services Produced Cater to the Basic Needs? Whether the Technology Protects Ecological Balance? Whether the Technology is Harmonious with Social and Cultural Conditions? 3

TECHNICAL ARRANGEMENTS:

TECHNICAL ARRANGEMENTS The nature of the support provided by collaborators Process and performance guarantees The price of technology The continuing benefit of R&D work The period of the collaboration agreement The assistance to be provided and restrictions to be imposed The level of equity participation and the manner of sharing management control. In case of change of ownership. Fails to meet obligations Force majeure situations 4

MATERIAL INPUTS AND UTILITIES:

MATERIAL INPUTS AND UTILITIES Raw Materials Agricultural Products Mineral Products Livestock and Forest Products Marine Products Processed Industrial Materials and Components Auxiliary Material and Supplies Utilities 5

PRODUCT MIX:

PRODUCT MIX Based on Market Requirements Variations in; Size Quality 6

PLANT CAPACITY:

PLANT CAPACITY Feasible Normal Capacity (FNC) Nominal Maximum Capacity (NMC) Factors: Technological Requirement Input Constraints Investment Cost Market Conditions Resources of the Firm Government Policy 7

LOCATION AND SITE:

LOCATION AND SITE Proximity of Raw Materials and Markets Availability of Infrastructure Labor Situation Governmental Policies Other Factors Climate Conditions General Living Conditions Proximity to Ancillary Units Ease in Coping with Environmental Pollution Site Selection 8

MACHINERIES AND EQUIPMENT:

MACHINERIES AND EQUIPMENT Selection Procedure Estimate the likely levels of production over time. Define the various machining and other operations Calculate the machine hours required for each type of operation Select machines and equipment required for each function 9

MACHINERIES AND EQUIPMENT:

MACHINERIES AND EQUIPMENT Equipment Classification Plant (process) equipment Mechanical equipment Electrical equipment Instruments Controls Internal transportation system others 10

MACHINERIES AND EQUIPMENT:

MACHINERIES AND EQUIPMENT Spare Parts & Tools Spare parts and tools to be purchased with the original equipment. Spare parts and tools to be required for operational wear and tear. 11

MACHINERIES AND EQUIPMENT:

MACHINERIES AND EQUIPMENT Constraints in selecting machineries and equipment Limited availability of power Difficulty in transporting heavy equipment Unavailability of trained workers Import policy of the government Procurement of plant and machinery 12

STRUCTURES AND CIVIL WORKS:

STRUCTURES AND CIVIL WORKS Site Preparation and Development Buildings and Structures Outdoor Works 13

ENVIRONMENTAL ASPECTS:

ENVIRONMENTAL ASPECTS Key Issues What are the types of effluents and emissions generated? What needs to be done for proper disposal of effluents and treatment of emissions? Will the project be able to secure all environmental clearness and comply with all statutory requirements? 14

PROJECT CHARTS AND LAYOUTS:

PROJECT CHARTS AND LAYOUTS General Functional Layout Material Flow Diagram Production Line Diagrams Transport Layout Utility Consumption Layout Communication Layout Organizational Layout Plant Layout 15

SCHEDULE OF PROJECT IMPLEMENTATION:

SCHEDULE OF PROJECT IMPLEMENTATION Critical Path Method (CPM) Program Evaluation Review Technique (PERT) Work Schedule 16

CRITICAL PATH METHOD (CPM):

CRITICAL PATH METHOD (CPM) 17

PROGRAM EVALUATION REVIEW TECHNIQUE (PERT):

PROGRAM EVALUATION REVIEW TECHNIQUE (PERT) 18

NEED FOR CONSIDERING ALTERNATIVES:

NEED FOR CONSIDERING ALTERNATIVES Nature of Project Production Process Product Quality Scale of Operation and Time Phasing Location 19

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