One of the major components of a project feasibility study is technical study. In case of product proposal, a technical study identifies whether the product could be produced at the highest possible quality level with minimum cost.
Factors to be considered in technical study
- Composition of the product such as physical, mechanical and chemical properties should be described.
- Manufacturing process include detail flow charts which indicate the material and energy requirement at each step and normal duration of the process.
- Plant size and production schedule includes the production capacity of the plant and number of days the project shall operate per year and expected attainable yearly production.
- Machinery. The number specification, rated capacities, prices of equipment and auxiliary equipment should be considered. Also, the availability of spare parts and repair services such as quotation from supplier, machinery guarantees, delivery, and terms of payment are other factors to be studied.
- Plant location, layout and structure. The location must be desirable in terms of distance to source of raw materials and markets.
- Raw materials. The availability, combination, current and prospective sources and costs of raw materials should be determined.
- Utilities and waste disposal. Here, it includes the specific utilities such as electricity, fuel, water, supplies and their respective uses, and quantity required.