TECHNICAL ANALYSIS

(LAST 7 STEPS)
NIKHITA RUSTAGI
6017
MBA 4TH SEMESTER
PROJECT PLANNING , ANALYSIS
AND MANAGMENT
CONTENT
 Introduction
 Purpose
 Last 7 steps of technical analysis
1. Location and site
2. Machineries and equipment
3. Structures and civil work
4. Environmental aspects
5. Project charts and layouts
6. Schedule of project implementation
7. Need for considering alternatives
 Conclusion
INTRODUCTION
Technical aspect relate to the production or generation of the project
output in the form of goods and services from the projects input. Technical
analysis represents study of the project to evaluate technical and
engineering aspect when a project is being examined and formulate. It is
a continuous process in the project appraisal system which determine the
prerequisites for meaningful commissioning of the project.

PURPOSE
 To ensure that the project is technically feasible in the sense that all the
inputs required to set up the project are available.
 To facilitate the most optimal formulation of the projects in the term of
technology ,size, location and so on.
TECHNICAL ANALYSIS (LAST 7 STEPS)
Location and site
Machineries and equipment
Structures and civil work
Environmental aspects
Project charts and layouts
Schedule of project implementation
Need for considering alternatives
LOCATION AND SITE
The choice of location and site follows an assessment of demand size and
demand and input requirements. Location refers to an fairly broad area
like a city , an industrial zone, or a coastal area; site refers to a specific
piece of land where the project would be set up. The choice is influenced
by a variety of considerations:
 Proximity to raw material and market
 Availability of infrastructure
 Availability of labour
 Government policies
 Other factors:
Climatic condition
General living condition
Ease in coping with pollution
Site selection
Once the broad location is chosen. Attention needs to be focused on
the selection of specific site. 2 or 3 alternatives sites must be
considered and evaluated with respect to cost of site preparation
and development. The cost of land tends to differ from one site to
another in the same broad location. Sites away from the city is less
costly. Sites in an industrial area developed by a governmental
agency may be available at concessional rates.
MACHINERIES AND EQUIPMENTS
Machineries and equipment requirements depends upon the production
technology and plant capacity of the proposed project. While
conducting technical analysis of a project the following steps must be
used to select Machineries and equipment :
 Estimate levels of production over time
 Define various machinery and operations
 Calculate machine hours required for each type of operations
 Select equipment and machinery for each function

TYPES OF MACHINERIES AND EQUIPMENTS:

 plant equipment
 Mechanical equipment
 Electrical equipment
 Instruments
 Control and internal transportation system
 Spare part and tools required with the original equipment and for
operational wear and tear

Things to be considered while selecting Machineries and equipment:

 Availability of power to run machines.
 Transporting heavy equipment's.
 Ease to use.
 Import policies of government if the machines are to be imported from a
foreign country.
 STRUCTURES AND CIVIL WORKS
Structures and civil workers may be divided into 3 categories

1.Structures and civil work

Site preparation Buildings and

and Outdoor works
structures
development
Site preparation and development:
 Grading the level of site
 Demolition and removal of existing structures
 Relocation of existing pipelines, cables, road, etc
 Connections for the utilities
Buildings and structures:
It may be divided into
 Factory buildings
 Ancillary buildings required for stores, warehouses, laboratories etc.
 Administrative buildings
 Staff welfare buildings
 Residential buildings

Outdoor works:
 Supply and distributions of utilities
 Handling and treatment of emission, wastage and effulents
 Transportation and traffic signals
 Outdoor lighting
ENVIRONMENTAL ASPECTS
A project may cause environmental pollution in various ways it may
throw gaseous emission; it may produce liquid and solid discharge;
it may cause noise, heat, and vibrations.
 So, the project must comply with all environmental rules and
regulations
 All effluents must be disposed off properly
 Eco-friendly standards must be adopted in the production
process
PROJECT CHARTS AND LAYOUTS
Once the project manager has sufficient data related to market , size, plant
capacity, production technology, machinery and equipment, buildings etc. he
prepare charts and layouts for the proposed project. Project charts and layouts
helps to:
1. Define the scope of the project.
2. Provide basis for detailed project engineering.
3. Helps in estimating investment and production cost.
Some important charts and layouts are:
 General functional layout
 Material flow diagram
 Production line diagram
 Transport layout
 Utility consumption layout
 Communication layout
 Plant layout
Schedule of project implementation
As a part of technical analysis, a project implementation schedule is also
usually prepared. For preparing a project implementation schedule the
following information is required:
 List of all the possible activities from project planning to commencement of
production.
 The sequence in which various activities how to be performed.
 The time required for performing various activities.
 The resources mainly required for performing various activities.
 The implications of putting more resources or less resources than normally
required.
NEED FOR CONSIDERING ALTERNATIVES

Need for considering alternatives has been touched upon earlier. This point
however, needs to be improved. There are alternatives ways of transforming an
idea into a concrete project. these alternatives may differ in one or more of the
following aspects:
 Nature of project
 Production process
 Product quality
 Scale of operation and the phasing
 location
CONCLUSION
Technical analysis represents study of the project to evaluate
technical and engineering aspects when a project is being
examined and formulated. It is a continuous process in the project
appraisal system which determines the prerequisites for meaningful
commissioning of the project.
THANK YOU