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(B.) TechnicalAnalysis,[object Object],Analysis of technical & engineering aspects is done continually when a project is being examined & formulated. Other types of analysis are closely intertwined with technical analysis.,[object Object],The broad purpose of technical analysis is. ,[object Object],To ensure that the project is technically feasible in the sense that all the inputs required to set up the project are available. And,[object Object], To facilitate the most optimal formulation of the project in terms of technology, size, location, and so on. 	,[object Object]
ManufacturingProcess / Technology,[object Object],	For manufacturing a product / service often two or more alternative technologies are available. For ex.,[object Object],Steel can be made either by the Bessemer process or the open hearth process.,[object Object],Cement can be made either by the dry process or the wet process.,[object Object],Soda can be made by the electrolysis method or the chemical method.,[object Object],Soap can be manufactured by the semi-boiled process or the fully boiled process.,[object Object]
ChoiceofTechnology,[object Object],The choice of technology is influenced by a variety of considerations:,[object Object],Plant Capacity,[object Object],Principal Inputs,[object Object],Investment Outlay & Production Cost,[object Object],Use by other units,[object Object],Product mix,[object Object],Latest Developments,[object Object],Ease of absorption,[object Object]
AppropriatenessofTechnology,[object Object],Appropriate technology refers to those methods of production which are suitable to local economic, social, and cultural conditions. In recent years, the debate about appropriate technology has been sparked off mainly by Schumacher & others. The advocates of appropriate technology urge that the technology should be evaluated in terms of the following questions:,[object Object],Whether the technology utilizes local raw materials?,[object Object],Whether the technology utilizes local man power?,[object Object],Whether the goods & services produced cater to the basic needs?  ,[object Object],The technology protects ecological balance?,[object Object],Whether the technology is harmonious with social & cultural conditions?   ,[object Object]
TechnicalArrangements,[object Object],Satisfactory arrangements must be made to obtain the technical know-how needed for the proposed manufacturing process. When collaboration is sought, the following aspects of the agreement must be worked out in detail:,[object Object],The nature of support to be provided by the collaborators during the designing of the project, selection & procurement of equipment, installation & erection of the plant, operation & maintenance of the plant, & training of the project personnel.,[object Object],Process & performance guarantees in terms of plant capacity, product quality, & consumption of raw materials & utilities.                       ,[object Object]
The price of technology in terms of one-time licensing fee & periodic royalty fee.,[object Object],The continuing benefit of research & development work being done by the collaborator.,[object Object],The period of the collaboration agreement.,[object Object],The assistance to be provided & the restrictions to be imposed by the collaborator with respect to exports.,[object Object],The level of equity participation & the manner of sharing management control, especially if the technical collaboration is backed by financial collaboration.,[object Object],Assignment of the agreement by either side in case of change of ownership.,[object Object],Termination of the agreement or other remedies when either party fails to meet its obligation.,[object Object]
MaterialInputs&Utilities,[object Object],	Material inputs & utilities may be classified into four broad categories:  ,[object Object],RawMaterials,[object Object],Raw materials may be classified into four types: ,[object Object],Agricultural Products,,[object Object],Mineral Products,,[object Object],Livestock & Forest Products, &,[object Object],Marine Products.,[object Object],Processed Industrial Materials & Components,[object Object],Auxiliary Materials & Factory Supplies,[object Object],Utilities  ,[object Object]

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