Scribd
Upload
106 views3 pages

Manufacturing Process and Technology Analysis

This document discusses various factors to consider for technical analysis when planning a new manufacturing plant or process. It identifies key questions to answer around the manufacturing process, raw materials, product mix, plant capacity, location and layout, environmental issues, and government policies. It also examines the appropriateness of the technology, inputs and utilities, product mix, plant capacity, location and layout, and considers alternatives. The overall goal is to evaluate all relevant technical details to select the best manufacturing approach.

Uploaded by

api-3837252
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
106 views3 pages

Manufacturing Process and Technology Analysis

This document discusses various factors to consider for technical analysis when planning a new manufacturing plant or process. It identifies key questions to answer around the manufacturing process, raw materials, product mix, plant capacity, location and layout, environmental issues, and government policies. It also examines the appropriateness of the technology, inputs and utilities, product mix, plant capacity, location and layout, and considers alternatives. The overall goal is to evaluate all relevant technical details to select the best manufacturing approach.

Uploaded by

api-3837252
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Technical Analysis

TECHNICAL  Along with market and demand analysis you


try to find out answer to following questions
ANALYSIS  What manufacturing process or technology?
 What raw materials or inputs?
 What will be the product mix?
 Capacity, location and layout of plant?
 What are environmental issues?
Sanjeev Bajaj
 What are Governmental policy for particular
Reader, Finance Area
technology?
 What are the alternatives?

Choice of Manufacturing Appropriateness of


Process or Technology Technology
 This issue arises due to many reasons like  An appropriate technology will be able to
 Different manufacturing processes for a product.
 Capacity Planned
answer following questions – Whether the –
 Inputs to be used  Technology utilizes local raw material?
 Investment to be made  Technology utilizes local man power?
 Cost of production by use of particular
technology/process  Goods and services produced cater to the
 Technology used by other units basic needs?
 Product mixed planned
 Technology protects ecological balance?
 Recent developments, appropriateness of
technology  Technology is harmonious with social and
 Ease of absorption cultural conditions?
 Availability of skilled manpower.

1
Technical Arrangements Inputs and Utilities
 If the technology to be used is patented by  There is a strong relationship between inputs and
someone else than technical arrangement have to utilities with plant location, technology, equipments
be made. and capacity.
 All aspects related to technical arrangements must  Issues related to inputs and utilities are
be carefully considered and taken care off like  Raw materials to be used and its availability
 Period of collaboration  Availability of industrial material and components
 Support  Availability of auxiliary materials and factory
 New developments supplies
 Price  Requirement and availability of utilities like power,
 Exclusivity in use, etc. water, steam, fuel etc.

Product Mix Plant Capacity


 While planning the plant capacity and  Decision about plant capacity is based on
technology one has to keep in mind the following:
product mix to be offered.  Technological requirement
 Like size, shape and variation in finished  Input constraints

products.  Investment cost

 Different combination of raw materials to be  Production cost

used to get varying quality (product mix) of  Market conditions


finished product.  Resources of the firm
 Governmental policy
 Availability of resources etc.

2
Plant Location and Layout Other Aspects
 Plant location depends upon  Civil structure
 Proximity to raw material and markets
 Machines and equipments
 Availability of infrastructure
 Labor situation  Environmental aspects
 Governmental policy  Project implementation schedule etc.
 Other factors like climate, etc.
 Plant layout depends upon
 To a large extent on the technology adopted and
capacity planned
 Flow of material
 Safety of labor/man power
 Output of the firm

Alternatives
 Main reasons for evaluating alternatives are
 Nature of project – possibility of integration
 Production process
 Product quality
 Scale of operations and time phasing
 Location

You might also like