1. TECHNICAL FEASIBILITY

2. A business is considered technically andoperationally feasible if it has the necessaryexpertise, infrastructure and capital to develop,install, operate and maintain the proposedsystem, and that by establishing such a system, thebusiness will be able to deliver goods or servicesat a profit. When considering a new business, it is important toconsider if there is sufficient access to resources. Oneof the primary reasons that new business fails isunder-capitalisation - not enough money to keepthe business going from startup until it starts to makea profit. This can lead to a lack of resources. 3. WHAT SHOULD BE DONE? 4. 1. SELECT THE PRODUCT (S) &/OR SERVICE (S) THE MANUFACTURING/PRODUCTION PROCESS THE CAPACITY & DESIGN THE SUPPLIES THE LOCATION THE LAY OUT THE STRUCTURES SPECIFICATIONS THE RAW MATERIALS & THEIR SOURCES 5. 2. DETERMINE THE QUANTITY & QUALITY OF THE PRODUCT (S)& SERVICE (S) TO BE PRODUCED THE LABOR NEEDED, BOTH SKILLED &UNSKILLED THE UTILITIES REQUIRED THE WASTE DISPOSAL METHOD THE TRANSPORTATION NECESSARY 6. 3. PROVIDE ESTIMATES OF THE TOTAL PROJECT COST, &ENUMERATE THE MAJOR ITEMS OF CAPITALCOST 7. 4. LIST DOWN IN DETAIL THE ESTIMATED PRODUCTION & OVER HEADCOSTS THAT WILL GO INTO OPERATING THEPROPOSED PROJECT 8. 5. TAKE INTO CONSIDERATION THE MAJOR TECHNOLOGICAL DEVELOPMENT INTHE INDUSTRY WHICH MAY AFFECT THECOMMERCIAL OR TECHNICAL SOUNDNESS OFTHE PROJECT. 9. THE TECHNICAL STUDY IS PRESENTED BYDESCRIBING & MAKING NECESSARYCALCULATIONS FOR THE FOLLOWING: 10. A. THE PRODUCT(S)/SERVICE(S) THIS PORTION DESCRIBES THE PRODUCTS ORSERVICES TO BE PRODUCED/PROVIDED & SOLD. WHICH SPECIFIES THE PRODUCTS PHYSICAL, MECHANICAL, &CHEMICAL PROPERTIES THEIR VARIOUS USES, BOTH AS FINISHED GOODS& INDUSTRIAL INPUTS. 11. B. MANUFACTURING/ PRODUCTIONPROCESS THE SELECTED MANUFACTURING/PRODUCTIONPROCESS MUST BE DESCRIBED SIMPLY & CLEARLY,PREFERABLY WITH THE AID OF FLOW CHARTS ANDDIAGRAMS. THE ALTERNATIVE PROCESSES & THE WAY THEYCOMPARE WITH THE CHOSEN PROCESS MUST BEMENTIONED. THE ANALYSIS SHOULD FURTHER TOUCH ON THEMANUFACTURING/PRODUCTION PROCESSES USED INEXISTING BUSINESSES WITH THE SAME OR SIMILARACTIVITY, BOTH DOMESTIC & FOREIGN. LICENSING AGREEMENTS & PATENTS SHOULD ALSOBE REVIEWED. 12. C. SIZE OF THE BUSINESS & PRODUCTIONSCHEDULES MINIMUM & MAXIMUM RATED CAPACITY FIXED COSTS ACTUAL CAPACITY UTILIZATION THE NUMBER OF SHIFTS PER DAY NUMBER OF OPERATING DAYS PER YEAR 13. D.PRODUCTION SCHEDULES THE EXPECTED GROWTH IN MARKET SHARE THE AVAILABILITY OF FINANCING FOR POSSIBLEEXPANSION THE AVAILABILITY OF MORE RAW MATERIALS THE LEVEL OF UTILIZATION OF PLANT CAPACITY 14. E. MACHINERY & EQUIPMENT IDENTIFIED & INDIVIDUALLY LISTED ACCDG TOTYPE & USE SPECIFICATIONS, CAPACITIES & COSTS MUST BEDESCRIBED IN DETAIL THE ORIGIN OF THE MACHINERY & EQUIPMENT,WHETHER LOCAL OR IMPORTED THE MANNER OF & COST OF TRANSPORTINGTHEM MUST BE INDICATED 15. E. MACHINERY & EQUIPMENT What type of equipment and technology will the businessneed to produce its product/service? What costs are involved to purchase and set up theequipment? What are the costs involved in the ongoingrunning of the equipment? EQUIPMENT SUPPLIERS: Who are the potential suppliers of the equipment? Where are they located? What sort of service and warranties do they provide? How long will it take to acquire the equipment and beginoperations? 16. F. LOCATION A THOROUGH & COMPARATIVE ANALYSIS FOR EACHPOTENTIAL LOCATION SHOULD BE MADE TO DETERMINETHE MOST IDEAL SITE. IT HAS TO CONSIDER THE FOLLOWING FACTORS: THE ACCESSIBILITY TO, & AVAILABILITY OF, RAW MATERIALSOURCES THE AVAILABILITY OF CHEAP OR MODERATELY-PRICEDUTILITIES SUCH AS POWER, WATER, OR FUEL THE COMBINED COST OF TRANSPORTING RAW MATERIALS &FUEL TO THE SITE THE PROXIMITY TO DISTRIBUTING OUTLETS THE AVAILABILITY OF SKILLED & UNSKILLED LABOR MAPS & CHARTS OF THE PROPOSED SITE MUST BEINCLUDED 17. G. LAYOUT THE LAYOUT SHOULD BE CLEARLY DEPICTEDTHROUGH DIAGRAMS & DESCRIPTIONS. A GOOD LAYOUT IS CHARACTERIZED BY MINIMUM MATERIAL HANDLING EFFECTIVE SPACE UTILIZATION SMOOTH WORK FLOW SAFE & CONDUCIVE WORKING AREA FOR THEWORKERS SAFETY AND SANITATION FACILITIES, & FLEXIBILITY OF ARRANGEMENTS 18. H. BUILDING & FACILITIES What are possible locations for the facility (office/manufacturingplant)? What size facility is needed? What are the costs involved in the building? Do you need to fit itout? How much will it cost to get all necessary utilitiesconnected? Does the proposed location have adequate access toinfrastructure and services such as highways, railway andutilities? Will you need to build your own facility, or purchase an existingone? Where will the facility be located in relation to your customers? Who will be responsibile for transport of goods between thefacility and the market? What are the costs involved? 19. H. BUILDING & FACILITIES THE SITE, TYPE, & COSTS OF THE BUILDING ANDLAND, AS ENVISIONED IN THE PROJECT, SHOULDACCURATELY BE PRESENTED. THE CONSTRUCTION COST OF THE BUILDING &FACILITIES SHOULD BE PRESENTED AS ADAPTEDTO THE MACHINERY & EQUIPMENT THAT WILLBE USED IN THE PROJECT. LAND IMPROVEMENTS SUCH AS ROADS,DRAINAGE FACILITIES, ETC. & THEIR RESPECTIVECOSTS SHOULD BE COMPUTED & INCLUDED. 20. I. RAW MATERIALS & SUPPLIES THE REQUIRED RAW MATERIALS SHOULD BE LISTEDDOWN AND THE BASIS FOR THEIR SELECTION MUSTPRESENTED. DESCRIPTIONS AND SPECIFICATIONS ON THEIRPHYSICAL, MECHANICAL, AND CHEMICALPROPERTIES MUST ALSO BE GIVEN. CURRENT AND PROSPECTIVE COST OF RAWMATERIALS, THE AVAILABILITY AND CONTINUITY OFSUPPLY, AND THE CURRENT PROSPECTIVE SOURCESSHOULD ALSO BE INCLUDED. THE VOLUME REQUIRED AT VARIOUS PHASES OFOPERATIONS MUST BE CLEARLY PRESENTED. 21. J. UTILITIES THIS PORTION DESCRIBES THE AMOUNT, COST,AND SOURCES OF ELECTRICITY, FUEL, WATER,AND/OR STEAM REQUIRED. THIS MUST BE DETERMINED IN RELATION TOTHE PRODUCTION SCHEDULE AND CAPACITYUTILIZATION DEFINED. ALTERNATIVE SOURCESOF THESE UTILITIES AND THE FEASIBILITY OFTHEIR USE MUST ALSO BE DESCRIBED. 22. K. WASTE DISPOSAL A DESCRIPTION OF THE QUANTITY, MANNER OFDISPOSAL, AND THE COST INVOLVED IN DOINGAWAY WITH EXPECTED WASTE FROMPRODUCTION IS NECESSARY. THE ANALYSIS MUST BE EXPANDED TOCONSIDER THE POSSIBILITIES OF FURTHERUSING THESE WASTES. 23. L. PRODUCTION COST THE MONETARY ASPECT OF ALL THEPRODUCTION PLANS IS PUT INTO PERSPECTIVE. HOW MUCH DOES IT COST TO PRODUCE ONEUNIT OF OUTPUT? TO ARRIVE AT THIS, THE FF MUST BEDETERMINED: RAW MATERIAL COSTS LABOR COST OVERHEAD COST( FIXED COST), OPERATING COSTS(VARIABLE COSTS) OTHER PERTINENT COSTS 24. M. LABOR REQUIREMENT THE VARIOUS JOBS AND FUNCTIONS NECESSARY FOR THEOPERATIONAL STAGE MUST BE DESCRIBED. FOR COSTING, LABOR IS GENERALLY CLASSIFIED INTOTHREE TYPES: DIRECT INDIRECT ADMINISTRATIVE THE NUMBER OF WORKERS TO BE EMPLOYED FOR EACHJOB CLASSIFICATION THE PAY SCALES EMPLOYEES DEVELOPMENT PROGRAMS THE ORGANIZATION SET-UP THE AGGREGATE LABOR COSTS 25. WORLDS MOST BEAUTIFUL HOTEL 26. MOST AMAZING CASTLE (THE POTALA PALACE ) 27. WORLDS AMAZING LUXURY YATCH 28. TRUMPH HOTEL 29. TOWER OF THE DUBAI MARINAS 30. STILL NOT CONVINCED? 31. THATS ALL!!! THANKS AND GOD BLESS YOU!!!