Technical AnalysisTechnical Analysis

Technical AnalysisTechnical AnalysisTechnical analysis of a project idea Technical analysis of a project idea

includes an in depth study of all technical includes an in depth study of all technical aspects related to aspects related to

Basic manufacturing operations,Basic manufacturing operations,Detailed design,Detailed design,Assembling.Assembling.

Technology SelectionTechnology SelectionWhat will the technology do?What will the technology do?What is required to adopt new What is required to adopt new

technology?technology?How much does the technology cost?How much does the technology cost?How certain are the above How certain are the above

apprehensions?apprehensions?

Technology SelectionTechnology Selection

Technical Specifications SummaryTechnical Specifications SummaryDetailed technical description of the Detailed technical description of the

technology technology Show how the proposal meets or Show how the proposal meets or

exceeds the requirementsexceeds the requirements

Input RequirementsInput RequirementsRaw MaterialsRaw MaterialsProcessed industrial materials and Processed industrial materials and

componentscomponentsAuxiliary materialsAuxiliary materialsFactory suppliesFactory supplies

Plant locationPlant locationMeaning-the establishment of a plant at a Meaning-the establishment of a plant at a

particular place.particular place.It is of 2 types-It is of 2 types-1.1. Localization /centralization-means Localization /centralization-means

concentration of similar type of concentration of similar type of industries at some particular place. E.g. industries at some particular place. E.g. textile in Mumbai.textile in Mumbai.

2.2. Delocalization /Decentralization-means Delocalization /Decentralization-means spreading of similar type of industries at spreading of similar type of industries at different places. E.g. banking industries.different places. E.g. banking industries.

Factors affecting location & site decisionsFactors affecting location & site decisions 1.1. Availability of raw materialAvailability of raw material2.2. Nearness to the potential marketNearness to the potential market3.3. Near to the source of operating requirements like Near to the source of operating requirements like

electricity, disposal of waste.electricity, disposal of waste.4.4. Supply of laborSupply of labor5.5. Transport & communication facilitiesTransport & communication facilities6.6. Integration with other group of companiesIntegration with other group of companies7.7. Suitability of land & climateSuitability of land & climate8.8. Availability of housing, other amenities & servicesAvailability of housing, other amenities & services9.9. Local building & planning regulationsLocal building & planning regulations10.10. Safety requirementsSafety requirements11.11. Others like low interest on loans, special grants, living Others like low interest on loans, special grants, living

standardsstandards

Selection of the site for the factory Selection of the site for the factory

Known as location analysis where firstly some Known as location analysis where firstly some geographical area is selected & from that geographical area is selected & from that area a particular site is selected for the area a particular site is selected for the establishment of the plant.establishment of the plant.

Methods for the evaluation of plant location-Methods for the evaluation of plant location-

1.1. Involving quantitative factors- Involving quantitative factors-

a.a. Comparative cost chart, b. dimensional Comparative cost chart, b. dimensional analysis.analysis.

2. Comparison of qualitative factors.2. Comparison of qualitative factors.

Plant layoutPlant layout Meaning-Meaning-

Plant layout is the physical arrangement of Plant layout is the physical arrangement of industrial facilities. It involves the allocation industrial facilities. It involves the allocation of space & the arrangement of equipment in of space & the arrangement of equipment in such a manner that overall operating costs are such a manner that overall operating costs are minimized.minimized.

D D

D D

G G

G G

G G

M M

M M

M M

A A

A A

L

L L

L L

L L

L

Types of plant layoutTypes of plant layout1.1. Product layout Product layout

2.2. Process layoutProcess layout

3.3. Fixed Position/ Stationary layoutFixed Position/ Stationary layout

Product layoutProduct layout-- Layout that uses standardized processing Layout that uses standardized processing

operations to achieve smooth, rapid, high-volume operations to achieve smooth, rapid, high-volume flowflow

Here machines are arranged acc. to the needs of Here machines are arranged acc. to the needs of product & in the same sequence as the operations product & in the same sequence as the operations are necessary for manufacture. are necessary for manufacture.

Raw materialsor customer

Finished item

Station 2

Station 2

Station 3

Station 3

Station 4

Station 4

Material and/or labor

Station 1

Material and/or labor

Material and/or labor

Material and/or labor

Used for Repetitive or Continuous Processing

Product LayoutProduct Layout

Process layoutProcess layout--

Layout that can handle varied processing Layout that can handle varied processing requirementsrequirements

Here all machines performing similar type Here all machines performing similar type of operations are grouped together at one of operations are grouped together at one location in the process layout. Thus here location in the process layout. Thus here facilities are grouped together acc. to their facilities are grouped together acc. to their functions. E.g. all drilling machines are functions. E.g. all drilling machines are located at one place known as drilling located at one place known as drilling section.section.

Dept. A

Dept. B Dept. D

Dept. C

Dept. F

Dept. E

Process Layout(functional)

Process LayoutProcess Layout

Fixed Position / Stationary layout-

Layout in which the product or project Layout in which the product or project remains stationary, and workers, remains stationary, and workers, materials, and equipment are moved as materials, and equipment are moved as needed. E.g. construction of DAMS.needed. E.g. construction of DAMS.

The product, because of its size and/or The product, because of its size and/or weight, remains in one location and weight, remains in one location and processes are brought to it.processes are brought to it.

Machinery and EquipmentDepends on the plant capacityDepends on the plant capacityType of process selected to Type of process selected to

implement the project.implement the project.Transportation of heavy equipment,Transportation of heavy equipment,Import of machineryImport of machineryAfter sales servicesAfter sales services

Production planning & controlProduction planning & controlProduction planning implies formulation, Production planning implies formulation,

co-ordination & determination of activities co-ordination & determination of activities in a manufacturing system necessary for the in a manufacturing system necessary for the accomplishment of desired objectivesaccomplishment of desired objectives

Production control is the process of Production control is the process of maintaining a balance between various maintaining a balance between various activities evolves during production activities evolves during production planning providing most effective & planning providing most effective & efficient utilization of resources.efficient utilization of resources.