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Factors influencing ProjectFactors influencing ProjectTechnical AnalysisTechnical Analysis

&&

Choice of TechnologyChoice of Technology

Submitted ByMrinal Kumar (BBA 4501/08)

Manoj Kumar (BBA 4518/08)

Aditi Oberoi (BBA 4526/08)

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INTRODUCTIONINTRODUCTION

Broad purpose of Technical Analysis

To ensure Technical feasibility with

respect to Inputs required to set up

project.

To facilitate the most optimal formulation

of project in terms of technology, size,

location, and so on.

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Factors Influencing Choice ofFactors Influencing Choice of

TechnologyTechnologyy Plant Capacity

y Principal Inputs

y

Investment outlay and production costy Use by other units

y Product Mix

y

Latest Developmentsy Ease of Absorption

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Appropriateness of TechnologyAppropriateness of Technology

yWhether it utilizes local raw materials?

yWhether it utilizes local man power?

yW

hether the goods and servicesproduced cater to the basic needs?

yWhether it protects ecological balance?

yWhether it is harmonious with social and

cultural conditions?

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Technical ArrangementsTechnical Arrangements

y Nature of support by collaborators

y Process and Performance guarantees

y P

rice of Technologyy Research and Development Benefits

y Period of collaboration Agreement

y

Assistance to be provided and restrictionsby collaborator

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y Level of Equity participation and manner

of sharing Management control.

y Assignment of agreement in case of

change in ownership by either side.

y Termination of Agreement or other

remedies upon failure of obligation.

y Approach in case offorce majeuresituations.

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Materials Inputs and UtilitiesMaterials Inputs and Utilities

They can be classified into four categories :

1) Raw Materials

2) Processed Industrial materials andcomponents

3) Auxiliary materials and factory supplies

4) Utilities

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Raw MaterialsRaw Materials

They may be classified into four categories :

1) Agricultural Products

2)Mineral

P

roducts3) Livestock and Forest Products

4) Marine Products

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Plant CapacityPlant Capacity

y Technological Requirement

y Input Constraints

y

Investment Costy Market Conditions

y Resources of the firm

y

Governmental policies

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Location and SiteLocation and Site

y Proximity to Raw Materials and Markets

y Availability of Infrastructure

y Labor Situation

y Governmental Policies

y Other Factors

y

Site Selection

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Machineries and EquipmentMachineries and Equipment

Types of Equipment

y Plant(Process) Equipment

y Mechanical Equipment

y Electrical Equipment

y Instruments

y

Controlsy Internal Transportation System

y Others

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Structures and Civil WorksStructures and Civil Works

y Site Preparation and Development

y Buildings and Structures

y OutdoorWorks

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Environmental AspectsEnvironmental Aspects

yWhat are the types of effluents and

emissions generated?

yWhat needs to be done for their proper

disposal?

yWill the project be able to secure all

environmental clearances and comply

with all statutory requirements?

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ANY QUESTIONS?ANY QUESTIONS?

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