How to complete the technical feasibility report of a project?

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 preparatory department

·         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.

Plant area 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 set-up.

List of Machinery

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.

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.

Dispatch

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 export purposes.

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 info@intelligentq.co.in . 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.