TECHNICAL AND

OPERATIONAL
DR.H. POPO SURYANA,S.E.,M.SI.
FACULTY OF ECONOMIC & BUSNESS
UNIVERSITAS PASUNDAN
TECHNICAL AND OPERATIONAL ASPECTS
Technical aspect is an aspect with regard to the technical
development and operation of the project after the project is
built.
Based on this analysis can also be obtained the initial design of
the assessment of investment costs including exploitation
costs.
Some of the main questions that need to get answers from the
technical aspects, namely:
 Project location
 The scale of operation / production area
 Criteria for selection of machines and main equipment and
auxiliary machines and equipment
 Production process and lay out selected factories, and lay out
buildings and other facilities
 The technology used, including social considerations

Dr.H. Popo Suryana,S.E.,M.Si., Busness Feasibilty

4/23/2020 Study, FEB Universitas Pasundan 2
 PROJECT LOCATION
1. Factory location
2. Non-factory location (Office Administration,
Marketing Office)
Some variables need to be considered in the selection
of factory location, among others:
Main Variables:
 Availability of Raw Materials
◦ The amount of raw material during the life of the
project
◦ Feasibility of price
◦ Certainty, quality and continuity
◦ Preliminary costs, transportation, exploitation
 Location of Target markets: buying power,
competitors, etc.
 Electricity and water
 Manpower Supply
 Transportation Facilities Dr.H. Popo Suryana,S.E.,M.Si.,
Busness Feasibilty Study, FEB
4/23/2020 Universitas Pasundan 3
 4

Secondary variable:
 Laws and regulations
 Climate and soil conditions
 Expansion plan

Dr.H. Popo Suryana,S.E.,M.Si., Busness Feasibilty 4/23/2020

Study, FEB Universitas Pasundan
After the selected location, the next step is the
determination of the land for the factory or office
building.
Some variables to note:
 the degree of dryness of the soil and the ability of the
soil to support the building
 security and fire protection have a good
 enough available wind to remove smoke factory from
the settlement
 cost of grading, foundation
 quite close to the public transportation system

Dr.H. Popo Suryana,S.E.,M.Si., Busness Feasibilty 5 4/23/2020

Study, FEB Universitas Pasundan
 Some analysis tools:

1. Qualitative methods of alternative assessment

location
2. Transportation methods: linear programming
(north west corner or steping stone method, MODI,
VAM)
3. Cost analysis method

Dr.H. Popo Suryana,S.E.,M.Si., Busness Feasibilty 4/23/2020

Study, FEB Universitas Pasundan
  Production area is the number of products that
should be produced to achieve optimal profit.
 The meaning of the word "should" and "optimal
advantage" includes the intention of combining
the company's external factors (internal market)
and internal factors (marketing efforts,
engineering variables, techniques related to
"production processes")

Dr.H. Popo Suryana,S.E.,M.Si., Busness

Feasibilty Study, FEB Universitas
4/23/2020 Pasundan 7
Several factors to consider in determining the area of
production:
a) Request restrictions
b) Availability of machine capacity
c) Number and ability of labor
d) Financial and management capabilities
e) Possible technological changes in the future.

Dr.H. Popo Suryana,S.E.,M.Si., Busness Feasibilty

4/23/2020 Study, FEB Universitas Pasundan 8
1. Conceptual Approach of Marginal Cost
and Marginal Revenue; MC = MR
2. Break Even Point Approach and
Financial Leverage
3. Linear Programming Method

Dr.H. Popo Suryana,S.E.,M.Si., Busness

Feasibilty Study, FEB Universitas
4/23/2020 Pasundan 9
 LAYOUT
Layout is the whole process of determining the "form" and
placement of facilities owned by the company. (site layout, factory
layout, non-factory building layout, and other facilities)
Two types of plant layout:
• Funsional Layout (layout process): machinery and other equipment
that have the same function are grouped and placed on a same
space. Usually used for order production with intermitten
production system.
• Product layout (line layout): machinery and equipment arranged in
order of production operation. Used for the market production
(mass production)
• Group layout: machines and groups that produce "family"
components that require similar production processes.
• Fixed position layout: place in a fixed place of the product to be
made, and other tools and components are brought to the
production process.
4/23/2020
Dr.H. Popo Suryana,S.E.,M.Si., Busness Feasibilty Study, FEB
Universitas Pasundan
10
The criteria used for the evaluation of the plant layout
include:
 Consistency with optimal technology
 Smooth product flow process
 Optimal use of resources
 Easy customization and expansion
 Minimize production costs and safety guarantees
 Cultivated layout has a direct current, reducing the
flow of crossing
 Depatement auxiliary, the workshop should be
functionally against the main factory building.
Dr.H. Popo Suryana,S.E.,M.Si., Busness Feasibilty
4/23/2020 Study, FEB Universitas Pasundan 11
The general benchmark used in the selection of
tech types is how far the desired degree of
mechanization and the expected economic
benefits.
In addition, other criteria:
 The accuracy of the type of technology
selected with the raw materials used
 The successful use of certain types of
technology elsewhere is consistent with the
location of the selected project
 Local knowledge of local people (employment),
possibly using foreign workers
 Possibility of advanced technology
Dr.H. Popo Suryana,S.E.,M.Si.,
Busness Feasibilty Study, FEB
Universitas Pasundan 4/23/2020 12