Tag: technical feasibility

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

• The appearance of the product such as physical, mechanical and chemical properties should be illustrated.
• Data flow or detail flow charts should indicate the material and energy requirement during the manufacturing process.
• Production schedule and plant size such as the production capacity and number of days that the project will operate per year and possible yearly production.
• Machine requirement such as machine specification and capacities as well as machine price and auxiliary equipment will also consider. Also include the availability of spare parts and repair services.
• Raw materials including the current and potential sources and cost of raw materials should also be determined.
• Location of the plant as well as the plant layout and structure.
• Waste disposal and utilities such as electricity, fuel, water and supplies.

Technical study in feasibility study can be an excellent means for trouble shooting and long term planning. It a method use of how the products and services will progress through your business to reach the target market. Other basic things need in technical study includes labor, materials, technology, and transportation.

Product

• Description of product
• Economic uses of the product

Manufacturing Process

• Detailed Flow Chart of the Manufacturing Process including the material and energy requirement at each step and normal duration of the process
• Other processes and factors considered to determine the process to be adopted
• Processes used in existing plants and in similar projects

Plant Size and Production Schedule

• Daily and annual production capacity of the plant
• Days per year the project operate
• Factors used in determining plant size
• Expected attainable annual production volume for the next five years considering start-up and technical factors.

Machinery

• Machinery layout such as the number of specifications, rated capacities of major machineries, prices of equipment, and balancing of capacities of each major and auxiliary equipment and standby units
• Spare parts and repair service available
• Quotations from suppliers, machinery guarantees, delivery, terms of payments and other arrangements

Plant Location and Layout

• Location map of the plant
• Plant Layout