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
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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
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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
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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
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

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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

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