Factors influencing Project

Technical Analysis
&
Choice of Technology

Submitted By
Mrinal Kumar (BBA 4501/08)
Manoj Kumar (BBA 4518/08)
Aditi Oberoi (BBA 4526/08)
INTRODUCTION
Broad purpose of Technical Analysis
 To ensure Technical feasibility with
respect to Inputs required to set up
project.
 To facilitate the most optimal formulation
of project in terms of technology, size,
location, and so on.
Factors Influencing Choice of
Technology
Plant Capacity
Principal Inputs
Investment outlay and production cost
Use by other units
Product Mix
Latest Developments
Ease of Absorption
Appropriateness of Technology
Whether it utilizes local raw materials?
Whether it utilizes local man power?
Whether the goods and services produced
cater to the basic needs?
Whether it protects ecological balance?
Whether it is harmonious with social and
cultural conditions?
Technical Arrangements
Nature of support by collaborators
Process and Performance guarantees
Price of Technology
Research and Development Benefits
Period of collaboration Agreement
Assistance to be provided and restrictions
by collaborator
Level of Equity participation and manner
of sharing Management control.
Assignment of agreement in case of
change in ownership by either side.
Termination of Agreement or other
remedies upon failure of obligation.
Approach in case of force majeure
situations.
Materials Inputs and Utilities
They can be classified into four categories :
1) Raw Materials
2) Processed Industrial materials and
components
3) Auxiliary materials and factory supplies
4) Utilities
Raw Materials
They may be classified into four
categories :
1) Agricultural Products
2) Mineral Products
3) Livestock and Forest Products
4) Marine Products
Plant Capacity
Technological Requirement
Input Constraints
Investment Cost
Market Conditions
Resources of the firm
Governmental policies
Location and Site
Proximity to Raw Materials and Markets
Availability of Infrastructure
Labor Situation
Governmental Policies
Other Factors
Site Selection
Machineries and Equipment
Types of Equipment
Plant(Process) Equipment
Mechanical Equipment
Electrical Equipment
Instruments
Controls
Internal Transportation System
Others
Structures and Civil Works
SitePreparation and Development
Buildings and Structures
Outdoor Works
Environmental Aspects
What are the types of effluents and
emissions generated?
What needs to be done for their proper
disposal?
Will the project be able to secure all
environmental clearances and comply
with all statutory requirements?
ANY QUESTIONS?