TECHNICAL TECHNICAL ANALYSISANALYSIS

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MANUFACTURING MANUFACTURING PROCESS / TECHNOLOGYPROCESS / TECHNOLOGY Choice of TechnologyChoice of Technology

Plant CapacityPlant Capacity Principal InputsPrincipal Inputs Investment Outlay and Production CostInvestment Outlay and Production Cost Use by Other UnitsUse by Other Units Product MixProduct Mix Latest DevelopmentsLatest Developments Ease of AbsorptionEase of Absorption

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MANUFACTURING MANUFACTURING PROCESS / TECHNOLOGYPROCESS / TECHNOLOGY Appropriateness of TechnologyAppropriateness of Technology

Whether the Technology Utilizes Local Raw Whether the Technology Utilizes Local Raw Materials?Materials?

Whether the Technology Utilizes Local Man Whether the Technology Utilizes Local Man Power?Power?

Whether the Goods and Services Produced Whether the Goods and Services Produced Cater to the Basic Needs?Cater to the Basic Needs?

Whether the Technology Protects Ecological Whether the Technology Protects Ecological Balance?Balance?

Whether the Technology is Harmonious with Whether the Technology is Harmonious with Social and Cultural Conditions?Social and Cultural Conditions? 33

TECHNICAL TECHNICAL ARRANGEMENTSARRANGEMENTS

The nature of the support provided by collaboratorsThe nature of the support provided by collaborators Process and performance guaranteesProcess and performance guarantees The price of technologyThe price of technology The continuing benefit of R&D workThe continuing benefit of R&D work The period of the collaboration agreementThe period of the collaboration agreement The assistance to be provided and restrictions to be The assistance to be provided and restrictions to be

imposedimposed The level of equity participation and the manner of The level of equity participation and the manner of

sharing management control.sharing management control. In case of change of ownership.In case of change of ownership. Fails to meet obligationsFails to meet obligations Force majeure situationsForce majeure situations 44

MATERIAL INPUTS MATERIAL INPUTS AND UTILITIESAND UTILITIES

Raw MaterialsRaw Materials Agricultural ProductsAgricultural Products Mineral ProductsMineral Products Livestock and Forest ProductsLivestock and Forest Products Marine ProductsMarine Products

Processed Industrial Materials and Processed Industrial Materials and ComponentsComponents

Auxiliary Material and SuppliesAuxiliary Material and Supplies UtilitiesUtilities

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PRODUCT MIXPRODUCT MIX

Based on Market RequirementsBased on Market Requirements Variations in;Variations in;

Size Size QualityQuality

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PLANT CAPACITYPLANT CAPACITY

Feasible Normal Capacity (FNC)Feasible Normal Capacity (FNC) Nominal Maximum Capacity (NMC)Nominal Maximum Capacity (NMC) Factors:Factors:

Technological RequirementTechnological Requirement Input ConstraintsInput Constraints Investment CostInvestment Cost Market ConditionsMarket Conditions Resources of the FirmResources of the Firm Government PolicyGovernment Policy 77

LOCATION AND SITELOCATION AND SITE

Proximity of Raw Materials and MarketsProximity of Raw Materials and Markets Availability of InfrastructureAvailability of Infrastructure Labor SituationLabor Situation Governmental PoliciesGovernmental Policies Other FactorsOther Factors

Climate ConditionsClimate Conditions General Living ConditionsGeneral Living Conditions Proximity to Ancillary UnitsProximity to Ancillary Units Ease in Coping with Environmental PollutionEase in Coping with Environmental Pollution

Site SelectionSite Selection 88

MACHINERIES AND MACHINERIES AND EQUIPMENTEQUIPMENT

Selection ProcedureSelection Procedure1.1. Estimate the likely levels of production over Estimate the likely levels of production over

time.time.

2.2. Define the various machining and other Define the various machining and other operationsoperations

3.3. Calculate the machine hours required for Calculate the machine hours required for each type of operationeach type of operation

4.4. Select machines and equipment required Select machines and equipment required for each functionfor each function

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MACHINERIES AND MACHINERIES AND EQUIPMENTEQUIPMENT

Equipment ClassificationEquipment Classification Plant (process) equipmentPlant (process) equipment Mechanical equipmentMechanical equipment Electrical equipmentElectrical equipment InstrumentsInstruments Controls Controls Internal transportation systemInternal transportation system othersothers

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MACHINERIES AND MACHINERIES AND EQUIPMENTEQUIPMENT

Spare Parts & ToolsSpare Parts & Tools Spare parts and tools to be purchased with Spare parts and tools to be purchased with

the original equipment.the original equipment. Spare parts and tools to be required for Spare parts and tools to be required for

operational wear and tear.operational wear and tear.

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MACHINERIES AND MACHINERIES AND EQUIPMENTEQUIPMENT

Constraints in selecting machineries Constraints in selecting machineries and equipmentand equipment

1.1. Limited availability of powerLimited availability of power

2.2. Difficulty in transporting heavy equipmentDifficulty in transporting heavy equipment

3.3. Unavailability of trained workersUnavailability of trained workers

4.4. Import policy of the governmentImport policy of the government

Procurement of plant and machineryProcurement of plant and machinery

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STRUCTURES AND STRUCTURES AND CIVIL WORKSCIVIL WORKS

Site Preparation and DevelopmentSite Preparation and Development Buildings and StructuresBuildings and Structures Outdoor WorksOutdoor Works

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ENVIRONMENTAL ASPECTSENVIRONMENTAL ASPECTS

Key IssuesKey Issues What are the types of effluents and What are the types of effluents and

emissions generated?emissions generated? What needs to be done for proper disposal What needs to be done for proper disposal

of effluents and treatment of emissions?of effluents and treatment of emissions? Will the project be able to secure all Will the project be able to secure all

environmental clearness and comply with all environmental clearness and comply with all statutory requirements?statutory requirements?

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PROJECT CHARTS PROJECT CHARTS AND LAYOUTSAND LAYOUTS

General Functional LayoutGeneral Functional Layout Material Flow DiagramMaterial Flow Diagram Production Line DiagramsProduction Line Diagrams Transport LayoutTransport Layout Utility Consumption LayoutUtility Consumption Layout Communication LayoutCommunication Layout Organizational LayoutOrganizational Layout Plant LayoutPlant Layout 1515

SCHEDULE OF PROJECT SCHEDULE OF PROJECT IMPLEMENTATIONIMPLEMENTATION

Critical Path Method (CPM)Critical Path Method (CPM) Program Evaluation Review Technique Program Evaluation Review Technique

(PERT)(PERT) Work ScheduleWork Schedule

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CRITICAL PATH METHOD CRITICAL PATH METHOD (CPM)(CPM)

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PROGRAM EVALUATION PROGRAM EVALUATION REVIEW TECHNIQUE (PERT)REVIEW TECHNIQUE (PERT)

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NEED FOR CONSIDERING NEED FOR CONSIDERING ALTERNATIVESALTERNATIVES

Nature of ProjectNature of Project Production ProcessProduction Process Product QualityProduct Quality Scale of Operation and Time PhasingScale of Operation and Time Phasing LocationLocation

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