Objective of Technical Analysis : Primary Objective First and foremost important objective of technical analysis is to see whether the

project idea is feasible or not from technical point of view.

PGDFM Group 3

Gives approximate requirements of raw, semi-processed/ processed materials, utilities auxiliary materials, tools and spares, etc. along with availability, sources or supply and estimates of annual costs (local/foreign).

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Technology Selection : Plant Capacity Material and utilities input requirements Investment Outlay and production costs Use by other units Flexibility in Product mix Latest Developments Appropriateness of technology.
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Another area to be analysed under the technical analysis is flexibility of technology and plan regarding product mix.

PGDFM Group 3

Determines feasible normal plant capacity (i.e. the production level achievable under normal working conditions duly taking into consideration the feasible equipped capacity; holidays; stoppages for shiftchange, tooling, preventive maintenance and repairs, and other reasons; and nature of the production process - continuous, batch or job) and specifics quantitative relationship(s) between sales, plant capacity, and major inputs.
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Recommends geographical location and sitting of the plant/ facilities and specifies essential related activities and costestimates. Nearness to raw-materials and market Availability of infrastructure Labour situations Government policies Other factors.
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Technical analysis of a project idea should include the study of required machinery and equipment to run the project. The machinery and technology required depends on the plant capacity and type of technology selected.

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Charts and Layouts Material Flow Diagram Production Line Diagram Transport Layout Utility Consumption Layout Communication Layout Organisation Layout Plant Layout
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To anticipate problems like To arise during the installation phase and suggest possible means for coping with them To establish the phasing of investments taking into account the availability of finances To develop a plan operations covering the initial period (the running - in period).
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THANK YOU

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