2. A business is considered technically andoperationally
feasible if it has the necessary expertise, infrastructure and
capital to develop, install, operate and maintain the proposed
system, and that by establishing such a system, the business will
be able to deliver goods or services at a profit. When considering
a new business, it is important to consider if there is sufficient
access to resources. One of the primary reasons that new business
fails is under-capitalisation - not enough money to keep the
business going from startup until it starts to make a 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 CAPITAL COST 7. 4. LIST DOWN IN DETAIL THE ESTIMATED
PRODUCTION & OVER HEADCOSTS THAT WILL GO INTO OPERATING THE
PROPOSED PROJECT 8. 5. TAKE INTO CONSIDERATION THE MAJOR
TECHNOLOGICAL DEVELOPMENT INTHE INDUSTRY WHICH MAY AFFECT THE
COMMERCIAL OR TECHNICAL SOUNDNESS OF THE PROJECT. 9. THE TECHNICAL
STUDY IS PRESENTED BY DESCRIBING & MAKING NECESSARY
CALCULATIONS 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/ PRODUCTION PROCESS THE SELECTED
MANUFACTURING/PRODUCTIONPROCESS MUST BE DESCRIBED SIMPLY &
CLEARLY, PREFERABLY WITH THE AID OF FLOW CHARTS AND DIAGRAMS. THE
ALTERNATIVE PROCESSES & THE WAY THEY COMPARE WITH THE CHOSEN
PROCESS MUST BE MENTIONED. THE ANALYSIS SHOULD FURTHER TOUCH ON THE
MANUFACTURING/PRODUCTION PROCESSES USED IN EXISTING BUSINESSES WITH
THE SAME OR SIMILAR ACTIVITY, BOTH DOMESTIC & FOREIGN.
LICENSING AGREEMENTS & PATENTS SHOULD ALSO BE REVIEWED. 12. C.
SIZE OF THE BUSINESS & PRODUCTION SCHEDULES 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
BE DESCRIBED IN DETAIL THE ORIGIN OF THE MACHINERY & EQUIPMENT,
WHETHER LOCAL OR IMPORTED THE MANNER OF & COST OF TRANSPORTING
THEM MUST BE INDICATED 15. E. MACHINERY & EQUIPMENT What type
of equipment and technology will the business need to produce its
product/service? What costs are involved to purchase and set up the
equipment? What are the costs involved in the ongoing running 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 begin operations? 16. F. LOCATION A THOROUGH &
COMPARATIVE ANALYSIS FOR EACHPOTENTIAL LOCATION SHOULD BE MADE TO
DETERMINE THE MOST IDEAL SITE. IT HAS TO CONSIDER THE FOLLOWING
FACTORS: THE ACCESSIBILITY TO, & AVAILABILITY OF, RAW MATERIAL
SOURCES THE AVAILABILITY OF CHEAP OR MODERATELY-PRICED UTILITIES
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/manufacturing plant)? What size facility is needed? What
are the costs involved in the building? Do you need to fit it out?
How much will it cost to get all necessary utilities connected?
Does the proposed location have adequate access to infrastructure
and services such as highways, railway and utilities? Will you need
to build your own facility, or purchase an existing one? Where will
the facility be located in relation to your customers? Who will be
responsibile for transport of goods between the facility 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, SHOULD ACCURATELY BE PRESENTED. THE
CONSTRUCTION COST OF THE BUILDING & FACILITIES SHOULD BE
PRESENTED AS ADAPTED TO THE MACHINERY & EQUIPMENT THAT WILL BE
USED IN THE PROJECT. LAND IMPROVEMENTS SUCH AS ROADS, DRAINAGE
FACILITIES, ETC. & THEIR RESPECTIVE COSTS SHOULD BE COMPUTED
& INCLUDED. 20. I. RAW MATERIALS & SUPPLIES THE REQUIRED
RAW MATERIALS SHOULD BE LISTEDDOWN AND THE BASIS FOR THEIR
SELECTION MUST PRESENTED. DESCRIPTIONS AND SPECIFICATIONS ON THEIR
PHYSICAL, MECHANICAL, AND CHEMICAL PROPERTIES MUST ALSO BE GIVEN.
CURRENT AND PROSPECTIVE COST OF RAW MATERIALS, THE AVAILABILITY AND
CONTINUITY OF SUPPLY, AND THE CURRENT PROSPECTIVE SOURCES SHOULD
ALSO BE INCLUDED. THE VOLUME REQUIRED AT VARIOUS PHASES OF
OPERATIONS 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 TO THE
PRODUCTION SCHEDULE AND CAPACITY UTILIZATION DEFINED. ALTERNATIVE
SOURCES OF THESE UTILITIES AND THE FEASIBILITY OF THEIR USE MUST
ALSO BE DESCRIBED. 22. K. WASTE DISPOSAL A DESCRIPTION OF THE
QUANTITY, MANNER OFDISPOSAL, AND THE COST INVOLVED IN DOING AWAY
WITH EXPECTED WASTE FROM PRODUCTION IS NECESSARY. THE ANALYSIS MUST
BE EXPANDED TO CONSIDER THE POSSIBILITIES OF FURTHER USING 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 INTO THREE TYPES: DIRECT INDIRECT
ADMINISTRATIVE THE NUMBER OF WORKERS TO BE EMPLOYED FOR EACH JOB
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!!!
