Technical feasibility studies can be of different sectors. It
can be an industrial set-up or a services business set-up. We have brought
forward some core elements of doing a feasibility study of an industrial set-up
in this article.
The technical feasibility study report of any industrial set-up will consist of the following sections.
Land area required for the plant and office
Plant area for the manufacturing process including
List of machineries
Selection of Machines
Process Flow Chart
Description of Manufacturing process
Let us now understand it one at a time!
Land area required
for the plan and office
The following functional areas of an industrial
setup will take-up maximum space. These are Raw Material Store, Engineering Store,
Mixing Section, Compound Store, Calendar Section, Main Plant, Boiler Section,
Coal/Pet Coke Area and Office/Laboratory.
This may vary depending upon the type of industry but broadly
these are the sections that can come into the plan. There should also be open
space for future expansion which should be at least 50% of the present area. In
some cases based upon our experience a mid size industrial set-up can require 4
acres of land.
for the manufacturing process including preparatory department
The plant area for the manufacturing process requires a preparatory
department and the main plant section. The preparatory department can include
the chemical weighing section, mixing section, compound store etc. This section
depending upon the industry can also include machines like warming mill,
cooling drum, let-off, wind-up etc. The next stage is the main plant where
depending upon the industry and the process the main plant machineries are
The list of machineries should include the machines required
for the preparatory plant and the main section. A table should be provided with
data given for the Name of the machine, quantity, purpose of the machine and
department. As for the quantity of
machines, there can be more than one machine in certain cases depending upon
the production requirements. There can be a requirement of 2 mixing mill and 2
kneaders for mixing the raw materials in the preparatory department. The
selection of machine is also an important step as it gives a clear idea of the
machine capacity and make.
Flow and Description of manufacturing Process
Understandably different industries will follow different
processes. Therefore, expertise and domain knowledge is required to map the
process flow of any industry based upon which the construction of the plant
will take place.
The compound required for the final product is produced in
Intermix or in a Kneader. The mixed compound is stored in the
compound store for maturation at before further processing. The compound
properties are checked in a Laboratory as per the standards to control the
quality of the final product.
The final product is taken through a quality check to for quality
standards. If any defect is observed unattended, then it is repaired and then
the product is packed in containers as per purchase orders.
After the repair and internal inspection of the final product,
it is kept in a semi-packed condition if it is under inspection clause by the
purchaser/ third party inspection. After the inspection, the product is packed
as per the purchase order and then dispatched.
The technical and financial data in your study should reconcile.
Therefore all costs related to man and materials should be drawn to create the
financial forecast that follows the technical feasibility.
The technical component serves as the written explanation of
financial data because if offers you a place to include detailed information
about why an expense has been projected high or low, or why it is even
necessary. It demonstrates to potential investors and lenders (and in some
cases, potential clients) that you have thought about the long-term needs your
business will have as it grows. Investors will always want to know the benefits
of the project. Therefore it is essential to highlight some of the key benefits
of the project. Depending upon the project it can be points such as Conservation
of Energy and Natural Resources or fulfillment of a gap in the market or maybe
Apart from process and benefits, the other core factors like risks, market opportunity and returns should
also be included in the feasibility study.
The order in which you present your technical requirements is
not as important as making sure that you include all the technical requirements
of your business. This information will help investors know more about the
operations of your business. Having a great idea for a product or business is
not enough; you have to show how you can make money from the idea. The
technical feasibility study addresses the physical and logistical mechanics of
it, and how, you will be able to get something into the product and back out
the door to customers. The technical
study in itself is not the complete feasibility study. The other sections of
the feasibility study include the business section and the commercial section.
I will write a detailed brief on these 2 sections in another blog.
If your company is looking at developing a technical
feasibility report across any domain, please connect with us at email@example.com . We can
help you develop a professional feasibility study with prices ranging from $1,250
to $ 3,000 depending upon the complexity of the project.