TECHNICAL ANALYSIS

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TECHNICAL ANALYSIS
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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

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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?

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TECHNICAL ARRANGEMENTS

• The nature of the support provided by
  collaborators
• Process and performance guarantees
• The price of technology
• The continuing benefit of RD 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

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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

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PRODUCT MIX

• Based on Market Requirements
• Variations in
• Size
• Quality

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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

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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

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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

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MACHINERIES AND EQUIPMENT

• Equipment Classification
• Plant (process) equipment
• Mechanical equipment
• Electrical equipment
• Instruments
• Controls
• Internal transportation system
• others

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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.

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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

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STRUCTURES AND CIVIL WORKS

• Site Preparation and Development
• Buildings and Structures
• Outdoor Works

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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?

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PROJECT CHARTS AND LAYOUTS

• General Functional Layout
• Material Flow Diagram
• Production Line Diagrams
• Transport Layout
• Utility Consumption Layout
• Communication Layout
• Organizational Layout
• Plant Layout

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SCHEDULE OF PROJECT IMPLEMENTATION

• Critical Path Method (CPM)
• Program Evaluation Review Technique (PERT)
• Work Schedule

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CRITICAL PATH METHOD (CPM)
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PROGRAM EVALUATION REVIEW TECHNIQUE (PERT)
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NEED FOR CONSIDERING ALTERNATIVES

• Nature of Project
• Production Process
• Product Quality
• Scale of Operation and Time Phasing
• Location