2. PURPOSE
To ensure that the project is technically feasible.
To facilitate the most optimal formulation of projects in terms of technology,
size, location and so on.
3. TECHNOLOGY
The choice of technology is influenced by a variety of considerations:
Plant capacity
Principal units
Investment outlay and production cost
Use by other units
Product mix
Latest developments
Ease of absorption
4. TECHNICAL ARRANGEMENTS
The nature of support provided by the collaborators
Process and performance guarantees
The price of technology
Period of collaboration
Assistance and restrictions by collaboration
Assignment of the agreement
Approach to be adopted in “Force majeure”
5. MATERIALS INPUTS AND UTILITIES
Materials input and utilities may be classified into four broad categories
Raw materials
Agricultural products
Mineral products
livestock and forest products
Marine products
Processed industrial materials and components
Auxiliary materials and factory supplies
Utilities
6. PRODUCT MIX
The choice of product mix is guided by market requirements. In production
most of the items, variations in size and quality are aimed at satisfying board
range of customers
7. PLANT CAPACITY
Plant capacity refers to the volume or number of units that can be
manufactured during a given period.
Several factors have a bearing on the capacity decision
Technological requirement
Input constraints
Investment cost
Market conditions
Resources of firm
Governmental policies
8. LOCATION AND SITE
The choice of location is influenced by:
Proximity to raw materials and markets
Availability of infrastructure
Labor situation
Governmental policies
Other factors