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TECHNICAL FEASIBILITY STUDY 1 Chapter (4) Lecturer.Ahmed El Rawas.

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Presentation on theme: "TECHNICAL FEASIBILITY STUDY 1 Chapter (4) Lecturer.Ahmed El Rawas."— Presentation transcript:

1 TECHNICAL FEASIBILITY STUDY 1 Chapter (4) Lecturer.Ahmed El Rawas

2 chapter content 2 What is technical study? Transformation process Classification of products materials and utilities Costs of raw materials and supplies Lecturer.Ahmed El Rawas

3 (1)What is a Technical Feasibility Study? 3 The Technical Feasibility Study assesses the details of how you will deliver a product or service (i.e., materials, labor, transportation, where your business will be located, technology needed, etc.). Think of the technical feasibility study as the logistical or tactical plan of how your business will produce, store, deliver, and track its products or services. Lecturer.Ahmed El Rawas

4 Technical study includes 4 1-Technology and operational This involves questions such as whether the technology needed for the system exists, how difficult it will be to build, and whether the firm has enough experience using that technology. The assessment is based on an outline design of system requirements in terms of Input, Processes, Output, Fields, Programs, and Procedures. This can be quantified in terms of volumes of data, trends, frequency of updating, etc in order to estimate if the new system will perform adequately or not. Lecturer.Ahmed El Rawas

5 Technical study 5 2- location analysis. Location analysis typically involves testing geographic locations for a real estate development project, and usually involves real estate land. Market Feasibility take into account the importance of the business in the selected area. Lecturer.Ahmed El Rawas

6 Technical study includes 6 3-Resource availability This involves questions such as how much time is available to build the new system, when it can be built, whether it interferes with normal business operations, type and amount of resources required, dependencies, etc. 4-Culture In this stage, the project's alternatives are evaluated for their impact on the local and general. an enterprise's own culture can clash with the results of the project. Lecturer.Ahmed El Rawas

7 Supply & Demand SupplyDemand > SupplyDemand < SupplyDemand = Wasteful Costly Opportunity Loss Customer Dissatisfaction Ideal Operations & Supply Chains Sales & Marketing

8 Operations Finance Marketing Organization Basic Functions of the Business Organization

9 The Transformation Process Inputs Land Labor Capital Information Outputs Goods Services Transformation/ Conversion Process Control Feedback Value-Added Feedback = measurements taken at various points in the transformation process Control = The comparison of feedback against previously established standards to determine if corrective action is needed.

10 Classification of products 10 Agricultural products Livestock and forest products Marine products Mineral products Lecturer.Ahmed El Rawas

11 materials and utilities 11 Electricity Fuel Water Packaging materials Lecturer.Ahmed El Rawas

12 Spare parts 12 all machinery and equipment will finally break down after a certain lifetime. Various spare parts will be required to keep a plant in operation. Lecturer.Ahmed El Rawas

13 Availability and supply 13 A feasibility study must show how the materials and inputs required will be provided. General availability, data about materials, potential users and supply sources and programs will have to be analyzed and described. Lecturer.Ahmed El Rawas

14 (5)Costs of raw materials and supplies 14 Unit costs (the unit cost of basic materials) Overhead costs of supplies Total cost = ( Q*V + f ) Lecturer.Ahmed El Rawas

15 Tech study main points ( project) 15 Material inputs Spare parts Cost of raw materials ( unit cost, annual cost, overhead cost) Finished product ( output ) Sources of supplies. Detailed assessment of the utilities required ( electricity, water, fuel ) Packaging materials. Lecturer.Ahmed El Rawas

16 Technical study main points ( project) 16 Location analysis (location choice ) Accessibility. Infrastructural conditions ( transport, communications ) Ecological conditions ( soil, site hazards, climate ) Cost of land, construction requirement Lecturer.Ahmed El Rawas


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