Technical Appraisal of A Project
Technical Appraisal of A Project
PROJECT
MEANING
Technical appraisal is the technical review to ascertain that the project is sound with
respect to various parameters such as technology, plant capacity, raw material
availability, manpower availability etc.
Technical appraisal is important as
It ensures that the project is technically feasible- all the inputs required to set up the
project are available
It facilitates optimum project formulations in terms of capacity, technology, location,
size etc.
DIMENSIONS OF TECHNICAL
APPRAISAL
Selection Of Process/Technology
Scale Of Operations
Raw Materials
Technical Know How
Collaboration Agreements
Product Mix
Selection And Procurement Of Plant And Machinery
Location Of The Project
Project Scheduling And Implementation
DIMENSIONS OF TECHNICAL
APPRAISAL
SELECTION OF PROCESS/TECHNOLOGY: the choice of technology depends
upon the quality and quantity of the product. if the quantity is very large mass level
production can be done. if the quality of the product is very high sophisticated
technology is required. technology can be purchased outright if the cost is affordable
or can be obtained either through licensing arrangement
SCALE OF OPERATIONS: signifies the size of the plant. the plant size depends
on the market for the output of the project. economic size of the plant for given
project can be analyzed by operating and capital cost.
DIMENSIONS OF TECHNICAL
APPRAISAL
RAW MATERIAL: a product can be manufactured using alternative raw materials
and with alternative process. since the machinery/equipment to be used depend upon
raw materials
TECHNICAL KNOW HOW: when technical know how for the project is provided
by experts consultants it must be ascertained whether the consultant has requisite
knowledge and experience and whether he has already executed similar projects.
Necessary agreement should be executed between the project promoter and know
how supplier
DIMENSIONS OF TECHNICAL
APPRAISAL
COLLABORATION AGREEMENTS: if the project promoters have entered into
agreements with foreign collaborators, terms and conditions of the agreement,
competency and reputation of the collaborator, imported technology should suit
Indian conditions. necessary approval of the government
PRODUCT MIX: A product mix is the total number of product lines and individual
products or services offered by a company. Additionally referred to as product
assortment or product portfolio. Product mixes vary from company to company.
Some have multiple product lines with lots of products in each line. But others are
much more limited.
DIMENSIONS OF TECHNICAL
APPRAISAL
SELECTION AND PROCUREMENT OF MACHINERY: the machinery and
equipment required for the project depends upon the proposed technology proposed
to be adopted and the size of the plant proposed. capacity of each machinery is to be
decided by making rough estimate. Apart from the main process of machinery,
equipment required for the supply of utilities, quality control ,effluent disposal,
material handling.
PLANT LAYOUT: the efficiency of manufacturing operation depends upon the
layout of the plant and machinery.plant layout is the arrangement of the various
production facilities with in the production area. plant layout should be so arranged
that it ensures steady flow of production and minimize the over all cost.
DIMENSIONS OF TECHNICAL
APPRAISAL
LOCATION OF THE PROJECTS: It depends on raw material, proximity to
market, availability of labor, availability of supporting industries, availability of
infrastructure facilities
PROJECT SCHEDULING: scheduling is nothing but the arrangement of activities
of the project in the order of time in which they are to be performed