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Structures and civil works Project charts and layouts Project implementation schedule Need for considering alternatives1.MANUFACTURING PROCESS/TECHNOLOGY

A. Choice of TechnologyThe choice of technology is influenced by avariety of considerations:

Plant capacity Principal inputs Investment outlay and production cost Use by other units Product mix Latest developments Ease of absorption

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B. Appropriateness of TechnologyAppropriate technology refers to those methods ofproduction which are suitable to local economic,social, and cultural conditions. Technologyshould be evaluated in terms of the followingquestions: Whether the technology utilizes local raw materials? Whether the technology utilises local man power?

Whether the goods and services produced cater to thebasic needs? Whether the technology protects ecological balance? Whether the technology is harmonious with social and

cultural conditions?

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2. Material Inputs and Utilities

Technical analysis is concerned with defining the materialsand utilities required. Those concerned with location,technology and equipments.

Material inputs and utilities maybe classified into four broadcategories; (i) raw materials (ii) Processed industrialmaterials and components (iii) auxiliary materials and factorysupplies, and (iv) utilities

a). Raw Materialsb). Processed Industrial Materials and Componentsc). Auxiliary Materials and Factory Supplies

A manufacturing project requires various auxiliarymaterial and factory supplies like chemicals, additives,Packaging materials, paint, varnishes,

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Oils, grease, cleaning materials, etc. The requirement ofsuch auxiliary material and supplies should be taken intoaccount in the feasibility study.d). Utilities (Power, water, steam, fuel, etc)A broad assessment of utilities (power, water, steam, fuel,etc) may be made at the time of the input study Thefollowing question should be raised while conducting theinputs study. What quantities are required? What are thesources of supply? What would be the potentialavailability? What are the likely shortages/ bottlenecks?

What measures may be taken to augment supplies?3. PRODUCT MIXVariations in size and quality are aimed at satisfying abroad range of customers.

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4. PLANT CAPACITY (also referred to as productioncapacity) refers to the volume or number of units thatcan be manufactured during a given period. Technological requirement : Based upon industry;

there is some minimum capacity of the Plant. Input Constraints: Power Supply, Raw Material Investment Cost: Investment cost per unit decreases

as the capacity of the plant increases.Market Conditions: Depends upon demands supply

and economy of the country. Resources of the firm: Both managerial and

financial limitation.

Government Policy: Capacity level may beinfluenced by the policy of the government.

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LOCATION AND SITE

Location and site follows an assessment of demand,size and input requirement. Location refers to afairly broad area like a city, an industrial zone, or acoastal Proximity to Raw Materials and Markets (refinery,

Steel Plant, Commodity based).

This generally implies that:- A resource-based project like a cement plant or

a steel mill should be located close to the sourceof the basic material (for example, limestone inthe case of a cement plant and iron ore in thecase of steel plant.)

A project based on imported material may be locatednear a port; and

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(iii) a Project manufacturing a perishable

product should be close to the centre ofconsumption. Availability of Infrastructure

Availability of power, transportation, water, andcommunications, should be carefully assessedbefore a location decision is made

Labour SituationIn labour intensive projects, the labour

situation in a particular location becomesimportant. The key factors to be considered inevaluating the labour situation are:

Availability of labour, skilled, semi skilledand unskilled

Prevailing labour rates

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Labour productivity State of industrial relations judged in terms of the

frequency and severity of strikers and lockouts

Degree of unionisation Governmental Policies

Private sector projects, location is influenced by certaingovernmental restrictions and inducements.Inducements for establishing industries in backward

areas. These inducements consist of subsidies, salestax loans, man power subsidy, income tax benefits,lower promoter contribution, and so on.

Other Factors Climatic conditions

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General living conditions Proximity to ancillary units Ease in coping with pollution

SITE SELECTION

Two to three alternative sites must be considered andevaluated with respect to cost of land and cost ofthe site preparation and development. The cost ofsite preparation and development depends on the

physical features of the site. MACHINERIES AND EQUIPMENT

The requirement of machineries and equipment isdependent on production technology and plantcapacity.

The equipment required for the project may beclassified into the following types:

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Plant (process) equipment, (ii) mechanical equipment (iii)electrical equipment (iv) instruments (v) controls (vi)internal transportation system, and (viii) others.

CONSTRAINTS IN SELECTING MACHINERIES ANDEQUIPMENT.

Limited availability of power to set up an electricity intensive plant like,

Difficulty in transporting heavy equipment to a remotelocation.

Workers may not be able to operate

PROCUREMENT OF PLANT AND MACHINERYThe plant and machinery may be placed with differentsuppliers or a turnkey contract may be given for the entire

plant and machinery to a single suppler. Desired quality ofmachinery, the level of

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Technological sophistication, the relative reputation ofthe various suppliers, the expected delivery

schedules, the preferred payment terms. STRUCTURES AND CIVIL WORKSStructures and civil works may be divided Site Preparation and development Buildings and structures, Outdoor works

ENVIRONMENTAL ASPECTS

A project may cause environment pollution in various ways: it may throw gaseous emissions; it may produce liquidand solid discharges;

What are the types of effluents and emissionsgenerated?

What needs to be done for proper disposal of

effluents and treatment of emissions?

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Will the project be able to secure all

environmental clearances and comply with allstatutory requirements? PROJECT CHARTS AND LAYOUTS

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

SCHEDULE OF PROJECT IMPLEMENTATIONAs part of the technical analysis, a project

implementation schedule is also usually prepared.For preparing the project implementation schedulethe following information is required.

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List of all possible activities from projectplanning to commencement of production

The sequence in which various activities have tobe performed. The time required for performing the various

activities. The resources normally required for performing

the various activities.

The implications of putting more resources orless resources than are normally required. WORK SCHEDULE

The work schedule, as its name suggests, reflectsthe plan of work concerning installation as well asinitial operations. The purpose of the workschedule is:

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To anticipate problems likely to ariseduring the installation phase and suggest

possible means for coping with them. To establish the phasing of investments

taking into account the availability offinances.

To develop a plan of operations coveringthe initial period.