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TECHNICAL ANALYSIS. MANUFACTURING PROCESS / TECHNOLOGY Choice of Technology Choice of Technology Plant Capacity Plant Capacity Principal Inputs Principal.

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Presentation on theme: "TECHNICAL ANALYSIS. MANUFACTURING PROCESS / TECHNOLOGY Choice of Technology Choice of Technology Plant Capacity Plant Capacity Principal Inputs Principal."— Presentation transcript:

1 TECHNICAL ANALYSIS

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

3 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?

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

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

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

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

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

9 MACHINERIES AND EQUIPMENT Selection Procedure 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

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

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

12 MACHINERIES AND EQUIPMENT Constraints in selecting machineries and equipment 1.L imited availability of power 2.D ifficulty in transporting heavy equipment 3.U navailability of trained workers 4.I mport policy of the government Procurement of plant and machinery

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

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

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

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

17 CRITICAL PATH METHOD (CPM)

18 PROGRAM EVALUATION REVIEW TECHNIQUE (PERT)

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


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