TEHNCICAL ASPECT

TECHNICAL ASPECT
> THE TECHNICAL ASPECT OF A PROJECT FEASIBILITY
STUDIES WILL COVER THE FOLLOWING:

A PRODUCTION PROGRAM

B PLANT CAPACITY

C MATERIALS AND INPUTS

D LOCATION AND SITE

E PROJECT ENGINEERING
 PROJECT FEASIBILITY STUDIES:
TECHNICAL ASPECT
A. PRODUCTION B. PLANT CAPACITY C. MATERIALS AND
Coverage of the study for this part INPUTS
PROGRAM follows:
The ff. areas will be covered: The ff. issues should be covered in
1. Data and alternatives the feasibility studies:
1. Data and alternatives
2. Determination of feasible 1. Data and alternative
2. Selection of production program
normal plant capacity 2. Supply program
3. Estimate costs of emissions
disposal

D. LOCATION AND E. PROJECT

SITE ENGINEERING
This will cover the study of the ff. This area of feasibility study covers
issues: the ff.:
1. Data and alternatives 1. Project layouts
Site: 2. Scope of project
1. Data and alternatives 3. Technology (ies)
2. Site selection 4. Equipment
3. Cost estimate 5. Civil engineering works
 A. PRODUCTION PROGRAM
A. Production Program The following areas will be covered:
3. For emissions such as:
1. Data and alternatives
a. Wastes and affluents (to be treated or
1. Describe the data required to set up a production program
not) dust, fumes, noise etc. Quality of
2. Describe possible alternative production programs
emissions
3. When preparing the production program, keep in mind among other
b. Quantities of emissions
things:
c. Time schedule d. Means of treatment
• Anticipated sales
4. Estimate costs of emissions disposal
• Minimum storage requirements
d. Treatment (as far as not covered
• Expected wastage
under equipment and civil works)
• Parameters of plant capacity
e. Disposal in dumps and/or sewage
• After-sales requirements
system
• Reserves due to operational reasons
f. Compensation payments to neighbors
2. Selection of production program
for damage caused by emissions
1. State reasons for selection
2. Describe in detail the production program
3. For each product (and by-product):
a. Quality specifications
b. Quantities produced annually
c. Time schedule of production (start-up, trial runs, full
capacity production)
 B. PLANT CAPACITY
Coverage of the study for this part follows:

1. Data and Alternatives

• Describes data for the determination of plant capacity.
• List possible alternatives on plant capacity

2. Determination of feasible normal capacity

• Select and describe in detail the feasible normal plant capacity.
• State reasons for selection.
• Describe nominal maximum capacity.
• The selection of the feasible normal plant capacity should be based on:
 Parameters of the production program
 Parameters of minimum economic equipment size
 Plant capacity should be determined as feasible normal capacity for;
 The entire plant
 The main departments (semi-finished products)
 B. PLANT CAPACITY
Notes on determination of plant capacity:  The sales program defines the timely, local and
1. Production capacity, or feasible normal quantitative distribution of the products to be sold.
capacity, is the volume or number of units a  The production program defines the annual quantities
plant can produce within a given period, of products, by-products and production wastes.
based on market demand and normal working  Quantitative relationship between the two programs:
conditions, including equipment, technical Qsales Qsales
conditions, and management systems. Qlosses Qlosses
Qwarranty services Qwarranty services
2. The quantitative relationship between sales,
plant capacity and material inputs is Qby-products Qplant capacity

determined by the basic rule that the sum of Qproduction wastes

inputs into the factory has to correspond to QProduction program
the sum of outputs which may be expressed
as:  The supply program defines the quantitative and
Q inputs = Q output timely supply with the required inputs:
Qsupply program = Qfactory inputs + Qlossess
 C. MATERIALS AND INPUTS
The following ISSUES SHOULD BE COVERED IN 1) When setting up the supply program, consider the:
THE FEASIBILITY STUDY • Production program
1. Data and alternative • Availability of supplies
a. Describe data for the selection of materials and • Characteristics of supplies
inputs • Technology and equipment
b. List all required materials and inputs and show • Losses of raw material inputs due to transport and storage Losses of semi-
alternatives finished and finished products due to processing, distribution and storage
• Replacements due to warranty services
Selection and description of materials and inputs • Local conditions
Select and describe in detail the chosen materials 2) Selection of the supply program
and inputs Select and describe in detail the optimum supply program
State reasons for selection State reasons for selection
Describe materials and inputs, stating Describe supply program, stating for each input:
• Qualitative properties • Quantitative supply program
• Quantities available • Sources of supply
• Sources, supplies • Timely delivery (schedule)
• Availability (schedule) • Storage measures and capacities (if necessary)
• Unit costs 3) Cost estimate
2. Supply program Estimate annual costs of materials and inputs:
c. Describe fundamental data for the preparation of the • Raw materials
supply program • Processed industrial materials
d. Prepare supply program, show alternatives • Manufacturers
• Auxiliary materials
• Factory supplies
• Utilities
 C. MATERIALS AND INPUTS
The following ISSUES SHOULD BE COVERED IN
THE FEASIBILITY STUDY

2) Selection of the supply program

Select and describe in detail the optimum supply program
State reasons for selection
Describe supply program, stating for each input:
• Quantitative supply program
• Sources of supply
• Timely delivery (schedule)
• Storage measures and capacities (if necessary)
3) Cost estimate
Estimate annual costs of materials and inputs:
• Raw materials
• Processed industrial materials
• Manufacturers
• Auxiliary materials
• Factory supplies
• Utilities
 D. LOCATION AND SITE
ThIS WILL COVER THE STUDY OF THE FOLLOWING Site
ISSUES: 1. Data and alternatives
a. Describe fundamental data and requirements on site for plant erection and
operation
Location
b. List possible site alternatives, describe and show them on maps of appropriate
1. Data and alternatives
scale
a. Describe the fundamental data and requirements on the locations for
2. Site selection
plant operation
Select and describe in detail the chosen optimum site
b. List possible locations, describe and show them on maps of
State reasons for selection
appropriate scale
Describe site, state:
Choice of location
• Location (town, street, number, etc.)
Select and describe in detail the chosen optimum location
• Geographical and geodetical conditions
State reasons for selection
• Use maps of appropriate scale, showing:
Describe location, state:
• Country Orientation
• Geographical location Boundaries
• District Neighbors
• Town Contour lines
Roads and other traffic connections
For the choice of location, the following aspects, among
Utility connections, next points of tie-in
others, should be taken into consideration:
• Public places Existing obstacles and structures
• Material versus market orientation Underground conditions
• Existing rights of way, easements etc.
• Local conditions: infrastructure and socio-economic
environment
 D. LOCATION AND SITE
ThIS WILL COVER THE STUDY OF THE FOLLOWING
ISSUES: Local conditions

For the selection of the plant site, the following aspects, among others. List and describe local conditions
should be taken into consideration: Climate Site and terrain
• Cost of land Transport facilities
• Local conditions: infrastructure and socio-economic environment Water supply
• Public policies versus private interests Power supply
• Site preparation and development Waste disposal
• Site properties and conditions Manpower
Fiscal and legal regulations
3. Cost estimate Construction, erection and maintenance facilities
• Investment cost, such as: Living conditions
• Land
• Taxes Environmental impacts
• Legal expenses
• Payments to neighbors Describe environmental impacts to be expected because of erection
• Rights of way (one time payments) and operation of plant on
Production cost, such as annual payments for: Population (increase of employment etc.)
• Rights of way Infrastructure (development of traffic network, public utilities
• Easements etc.)
• Rents Ecology (water, air, soil, plants, animals etc.)
Landscape
D. LOCATION AND SITE
ThIS WILL COVER THE STUDY OF THE FOLLOWING ISSUES:

Notes on Location and Site:

A feasibility study has to define the location and site suitable for the industrial project under
consideration. The choice of location should be made from a fairly wide geographical area within
which several alternative sites may have to be considered. Once the site has been selected, the
impact on the environment of erecting and operating the industrial plant has to be studied.

The determination of industrial location should consider four principal factors:

(1) Public policies (e.g. location restrictions on environmental grounds. imbalance in
economical development due to urban industrial concentration, etc.)
(2) Interaction between various factors (e.g. proximity of sources, raw materials, labor and
markets)
(3) General locational factors (e.g. availability of infrastructure investment such as energy,
transport, water, communications, housing, climactic conditions, etc.)
(4) Cost of site acquisition preparation and development
 D. PROJECT
ENGINEERING
ThIS AREa of the feasibility study covers the following:

1. Project Layouts:
a. Data and Alternatives:

State the data required for the preparation of project layouts include:
• Production program
• Supply program
• Technology
• Equipment
• Civil works
• Local conditions
Prepare and describe alternative project layouts.

b. Selection of Layouts:
Select and describe in detail the optimum layouts. State the reasons for the selection. Show the selected layouts through
appropriate drawings.

2. Scope of Project:
b. Data and Alternatives:
State the data required to define the scope of the project. Prepare and describe alternatives.
b. Selection of the Scope of the Project Select and describe in detail the optimum scope of the project. State reasons for the selection.
Use physical layout drawings to show the scope of the project and project components.
 D. PROJECT
ENGINEERING
ThIS AREa of the feasibility study covers the following:
3. Technology:
a. Data and Alternatives: State the data required for the technologies to be used. Describe alternative
technologies.
b. Selection of Technology:
Select and describe in detail the optimum technologies. Consider the nature of the technologies
required, such as labor versus capital intensity and non-obsolescence.
State the reasons for the selection.
Describe the selected technology, including the type, source, and specification.
Estimate the cost of the technology, including investment costs, lump sum payments, production cost,
royalties, and fixed annual payments.

4. Equipment:
c. Equipment should be classified into production, auxiliary, service equipment, spare parts, and tools.

State and describe in detail the optimum equipment. List the necessary equipment and alternatives. Select
and describe in detail the optimum equipment. State reasons for the selection. Describe the selected
equipment, including the number, type, specification, capacity, and source. Estimate the cost of equipment,
including investment, production, auxiliary, service, primary stock of spare parts, wear and tear parts, and
tools.
 D. PROJECT
ENGINEERING
ThIS AREa of the feasibility study covers the following:

5. Civil Engineering Works:

Civil engineering works should be classified into site preparation and development, buildings and special civil works, and outdoor
works (auxiliary and service facilities).

Data and Alternatives

Describe the data for civil engineering.
List civil engineering works and possible alternatives.
Select and describe in detail optimum civil works.
State reasons for the selection.
Describe selected civil works, stating the number, type, specification (if applicable).

Estimate the cost of civil engineering works, including investment costs, site preparation and development, buildings and special civil
works, outdoor works, and production cost (annual cost for maintenance and repair of civil engineering works).

Notes on Project Engineering:

Once the entire extension of the project is understood, determine the appropriate technological processes, machinery and
equipment required, and the cost of technology and equipment based on the identified plant capacity. Define various structures and
civil works, such as factory buildings, auxiliary structures, and plant infrastructure facilities, and estimate the relevant costs.