Skip to main content

Technical Analysis of Projects

Technical analysis is concerned primarily with :

  • Materials and inputs
  • Production technology
  • Plant capacity
  • Location and site
  • Machinery and Equipment
  • Structures and civil works, project charts and layouts
  • Work schedule
An important aspect of technical analysis is concerned with defining the materials and inputs required,specifying their properties in some details and setting up their supply programmes. 

Materials may be classified into four broad categories:
  • Raw materials
  • Processed industrial materials and components
  • Auxiliary materials and factory supplies
  • Utilities
For manufacturing a product/service often two or more alternative technologies are available. The choice of technology is influenced by a vriety of considerations: plant capacity,principal inputs,investments outlay and production cost,use by other units,product mix,latest developments and ease of absorption.

The acquisition of technology from some other enterprise may be by way of :
  • Technology licensing
  • Outright purchase
  • Joint venture arrangement
Appropriate technology refers to those methods of production which are suitable to local economic , social and cultural conditions.

Several factors have a bearing on plant capacity decision:
  • Technological requirements
  • input constraints,
  • investment cost, 
  • market conditions
  • resources of the firm
  • governmental policy
The choice of location is influenced by a variety of considerations: 
Proximity to raw materials and markets,Availability of infrastructure facilities and other factors. Once abroad location is chosen, the attention needs to be focused on the selection of site- a specific piece of land where the project would be set up,.

The requirement of machinery and equipment is dependent on production technology and plant capacity. Further it is influenced by the type of product.

Structure and civil works may be divided into three categories:
  • Site preparation and development
  • Building and structures
  • Outdoor works
Once data is available on the principal dimensions of the project, project charts and layouts may be prepared. The important charts and layout drawings are:
  1. General functional layouts
  2. Material flow diagrams
  3. Production line diagrams
  4. Transport layouts
  5. utility consumption layouts
  6. Communication layouts
  7. Organisational layouts
  8. Plant layout
The work schedule reflects the plan of work concerning installation as well as initial operation.
 There are alternative ways of transforming and idea into a concrete project. These  alternatives may differ in one or more of the following aspects: nature of project, production process, quality of products, scale of operation and time phasing and location.
Labels:

Comments

Post a Comment

Popular posts from this blog

RISK in Investments

Investment decisions are a trade off between Risk and Return. Risk refers to the possibility that the actual outcome of an investment will differ from its expected outcome. Most investors are concerned about the actual outcome being less than the expected outcome. The wider the range of possible outcomes,the greater the risk. SOURCES OF RISK The three major sources of risk are: Business Risk Interest Rate Risk Market Risk   Business Risk As a holder of corporate securities (equity shares and debentures) you are exposed to risk of poor business performance. This may be caused by a variety of factors like heightened competition, emergence of new technologies, development of substitute products , shifts in consumer preferences, inadequate supply of essential inputs,changes in governmental policies and so on. The principal reason might be inept and incompetent management. Interest Rate Risk The changes in interest rate have a bearing  on the welfare of investors. As th
Post a Comment
Read more

8 traits of great Leaders

Very few people start out in life as a leader. Most people who are effective leaders have gone through many trial and errors before learning the basic leadership skills of what makes an effective leader. The comment that leaders are born not made is partially true. However, some techniques can help anyone become an effective leader. What are the traits of an effective leader? Henry David Thoreau once said, “To affect the quality of the Day that is the highest of arts.” 1.       A leaders vision is to shape the lives and transform people into being better than they were. An effective leader has the ability to inspire collaboration versus trying to control people. 2.       They have the ability to persuade others to do what is right compared to having to order people to do what is right. 3.       In addition, leaders get others to commit voluntarily versus committing out of fear or compliance. 4.       These men and women tend to be great thinkers and focus on thi
Post a Comment
Read more

A note on Motivation

Motivation Theories Motivation- those factors that cause ,channel, and sustain people’s behavior. Motivation is not always easy to discern. Most successful managers ,however, have learned by experience that people are generally very responsive to praise and encouragement-expressed not only in words but also in actions and need to feel successful in their work to give their best effort to the organization. Different View points on Motivation The Traditional Model The traditional model of motivation is associated with Fredrick Taylor and scientific management which held that an important aspect of the manager’s job was to make sure that workers perform repetitive  tasks in the most efficient way. The Human Relations Model In the human relations model, workers were expected to accept management’s authority because supervisors treated them with consideration and were attentive to their needs. The intent of managers ,however remained the same- to have the workers accept
Post a Comment
Read more