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Technical Analysis

The document discusses the technical analysis for a manufacturing project, covering several areas: manufacturing process and technology options; material inputs and utilities; product mix; plant capacity; location; machinery and equipment selection and requirements; civil works; environmental impacts; project schedules; and need to consider alternatives. It provides detailed guidance on factors to evaluate within each area to properly plan the manufacturing project from a technical perspective.

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aroranidhs
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124 views20 pages

Technical Analysis

The document discusses the technical analysis for a manufacturing project, covering several areas: manufacturing process and technology options; material inputs and utilities; product mix; plant capacity; location; machinery and equipment selection and requirements; civil works; environmental impacts; project schedules; and need to consider alternatives. It provides detailed guidance on factors to evaluate within each area to properly plan the manufacturing project from a technical perspective.

Uploaded by

aroranidhs
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 20

TECHNICAL

ANALYSIS

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

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
3
Social and Cultural Conditions?

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

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

PRODUCT MIX
Based on Market Requirements
Variations in;
Size
Quality

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

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

MACHINERIES AND
EQUIPMENT

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

MACHINERIES AND
EQUIPMENT
Equipment Classification

Plant (process) equipment


Mechanical equipment
Electrical equipment
Instruments
Controls
Internal transportation system
others
10

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

Constraints in selecting machineries


and equipment
1.
2.
3.
4.

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

Site Preparation and Development


Buildings and Structures
Outdoor Works

13

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

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

16

CRITICAL PATH METHOD


(CPM)

17

PROGRAM EVALUATION
REVIEW TECHNIQUE
(PERT)

18

NEED FOR
CONSIDERING
ALTERNATIVES

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

19

20

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