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AY-2021-2022

Electrical Engineering Department

Subject-EM&ST

Semester-5th

Topic-Chapter09(SMART TECHNOLOGY)

Prepared By-Er Gurupada Mishra

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  • Feasibility Study is an assessment of the practicality of a proposed project or system.
  • In feasibility analysis, the project idea is examined from the point of view whether to go in for making a detailed investment proposal or not.

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What is Feasibility Analysis

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While making a feasibility analysis, there could

1.When the project idea seems to be feasible, then we proceed with the idea.

2. When the project idea is not feasible, then we abandon the idea.

3. When we are unable to arrive at a conclusion, then we make efforts to collect the required data and design the development.

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be only 3 alternatives which are the following:

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  • Techno - Economic feasibility refers to the estimation of project demand potential and choice of optimal technology.

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  • Techno- Economic feasibility is an analysis on the existing market and technology.

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  • The choice of technology itself will be based on the demand potential in project design.
  • Techno - Economic feasibility analyze the project on individual criteria or different aspects and sets the stage for detailed design development.

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  • A feasibility report of a new enterprise or of an expanding enterprise consist of some background info. about the industry to which the project belongs, and the enterprise submitting the report in general.

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1. Objective and scope of the report

  1. Product characteristics.
  2. Market position and trends.
  3. Raw material requirement, prices, sources and properties of raw materials.
  4. Manufacturing processes, selection of process, production schedule and techniques.
  5. Plant and machinery.
  6. Requirement of land area, building, construction schedule.
  7. Financial implications.
  8. Marketing channels, their trending practices and marketing strategies.
  9. Requirement of personnel, labour and expenses on wage system

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PRE - FEASIBILITY STUDY

DETAILED FEASIBILITY STUDY

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Factors to be considerd while preparing report

Technical considerations

Economic considerations

Financial considerations

Managerial consideration

Implementation schedule

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  • Technical Considerations : It establishes whether the project is technically feasible or not. In this various technical alternatives on employment, ecology , infrastructure demands, capital services , balance of payments and other factors are taken in account.
  • Economic Considerations : Economic data relates to market, the data required for analysis of this aspect can be obtained from secondary sources like government agencies, trade associations. Data can also be obtained through primary sources like mailed questionnaire and market survey.
  • Financial Considerations : Financial considerations help the project to evaluate the different measures of commercial profitability and the magnitude of financing9 required . It requires the current status of the market with respect to the project.

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under this aspect. For this purpose an appropriate organization structure is decided, then the skills and talents required by man power is determined.

Managerial competence consideration :

  1. Activity analysis involving anticipated work flow and the activities involved in the project.
  2. Grouping of activities into tasks which employees can

perform effectively.

  1. Classification of tasks are the building blocks of the organization structure.
  2. Determining inter-relationships between different
  • Managerial Competence : A proper assessment of the number and skills of staff required for the project is to be considered

positions to decide the chain of command

  • Implementation Schedule : The implementation schedule is

prepared to ensure timely completion of the project. It helps in saving time and cost. Delays in project completion may

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PRODUCTION

PURCHASE INSTALLATION, RECRUITMENT AND TRIALS

WATER AND POWER CONNECTION

CONSTRUCTION OF FACTORY

LAND PROCCUREMENT

TERM-LOAN

app.

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  • A record to verify that the running facets of the project are analyzed just before implementation.

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  • To make sure the suggested project/business is a effective venture.

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  • Provide guideline which will help the management in easy monitoring and controlling project implementation and production activity.

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  • Helps you to convince bankers, partners, government to1a3 vail necessary help.

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1. Management capacity to handle the company.

  1. Government clearance and approval feasibility.

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  • Marketability from the products towards the extent of

Production suggested.

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  1. Technical feasibility of production.

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  • Financial stability to make sure of profit.

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I. Management capacity to employ THE PROJECT and keep it

check effectively:

Personal particulars from the marketers. Financial status from the marketers.

Stake from the marketers / equity participation particulars. The connection between the marketers.

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  • Organization chart /determining clearly government bodies and duties.
  • Particulars from the key personnel.
  • Write the kind of skilled persons needed for that project as well as

their availability.

o Bankers / auditors particulars.

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II. Government clearances to become acquired:

  • Licence for production and exports
  • Licence for imports of machines/ recyclables /many other materials
  • Foreign nation guidelines highly relevant to the company
  • Work law and Industrial facilities act/industries act / boiler act
  • Register of companies -Tax act ,Excise duty and ISO certification
  • Maximum retail cost
  • Storing the raw materials , many other materials
  • Packing and moving
  • Investment subsidy supplied by the government

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  • Location from the project
  • Government reservation list for SSI sector

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III.

Marketing aspects:

a) Creating the near future DEMAND / SUPPLY in quantity terms

  • Projecting THE NEAR FUTURE DEMND

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  • Study yesteryear demand pattern

Consumption , market size , exports , role of competition Starting at the present trend and future expected

demand thinking about above points

  • Projecting THE NEAR FUTURE SUPPLY

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  • Study yesteryear supply pattern

Production sector market , capital utilisation, imports and

quantity of models

Starting at the present trend and future expected supply

thinking about above points

  1. The scope of promoting the merchandise to at least one
    • Consumer market
    • Industrial market
    • Export market
    • Government and institutional market

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c) The marketing mix ( product, cost, place promotion) of

competitors

Companies analyzed to reach a suitable means of organisation

d) Scope for ANCILLARY status unit to motor unit , marketing correct arrangement , opening show rooms , acquiring job work , captive consumption , ETC analyzed.

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1. Quality parameters from the items suggested to

become created.

  1. Product specifications.
  2. Quantity to become created in every variety.
  3. Suggested technology.
  4. Highlights around the suggested technology.
  5. Procedure for manufacture.
  6. Production line balancing.
  7. Listings of machines.
  1. Supplier selections.
  2. Raw material. (cost, quality etc.)

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1. Price of land.

  1. Price of building / Sheds and other infrastructures.
  2. Price of machines & Equipments.
  3. Contingencies.
  4. Preliminary and pre operative expenses.
  5. Miscellaneous fixed assets.

7. Margin money for capital.

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1. Promoter’s capital.

  1. Term loan from bank.
  2. Investment subsidy.

Term loan component is debt promoter’s capital and investment subsidy components may be the equity.

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1. Profit on sales.

  1. Profit on investment with various investment options.
  2. Break even point.
  3. DET service coverage ratio.
  4. Sensitivity analysis.
  5. Internal rate of return.

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THANK YOU