LECTURE 9
TECHNICAL APPRAISAL
Clearly, every project must be technically feasible. Technical Appraisal provides a comprehensive review of all technical aspects of the project such as rendering judgment on merits of technical proposals and operating costs. Here is a checklist that can be used:
• Is the technology proven or tested? If not, has it ever been successful elsewhere and can that success be replicated in current context and conditions?
• Does the technology/ process/ equipment technically fit with the facility’s existing technology/ process/ equipment & machinery? If not, what aspects of the technology / process do not fit and what measures is the implementing agency planning to take in this regard?
• List of equipments and machinery to be installed with cost and specifications of the equipment.
• Equipment capacity & whether it is as per requirement?
• List of recommended equipment suppliers. A checklist evaluating the proposed implementation plan to assess whether the project can be implemented as per schedule and requirements should be reviewed and should form part of the project report.
Below is a sample of such a checklist:
a. Skills & Experience of the Project Implementation Team:
• Who is implementing the project?
• Does the project implementation team have adequate skills and experience? Provide a list of relevant projects completed in the last two years.
b. Selection of suppliers
• Have suppliers been selected? If yes, provide a list of selected suppliers including equipments to be supplied by the supplier, price of the equipment and delivery schedule.
• Reputation of the suppliers – whether the supplier is a large national or regional distributor/ supplier or local supplier?
• Terms for supply and installation of the equipment by the suppliers.
• Is there any performance guarantees from the equipment suppliers?
c. Implementation time period
• Time period required to implement the project
• Consequences in case project implementation is delayed.
PLANT LOCATION AND LAYOUT
NTRODUCTION AND MEANING
Plant location or the facilities location problem is an important strategic level decision- making for an organisation. One of the key features of a conversion process (manufacturing system) is the efficiency with which the products (services) are transferred to the customers. This fact will include the determination of where to place the plant or facility. The selection of location is a key-decision as large investment is made in building plant and machinery. It is not advisable or not possible to change the location very often. So an improper location of plant may lead to waste of all the investments made in building and machinery, equipment. Before a location for a plant is selected, long range forecasts should be made anticipating future needs of the company. The plant location should be based on the company’s expansion plan and policy, diversification plan for the products, changing market conditions, the changing sources of raw materials and many other factors that influence the choice of the location decision. The purpose of the location study is to find an optimum location one that will result in the greatest advantage to the organization
INTRODUCTION AND MEANING
Plant location or the facilities location problem is an important strategic level decision- making for an organisation. One of the key features of a conversion process (manufacturingMsystem) is the efficiency with which the products (services) are transferred to the customers. This fact will include the determination of where to place the plant or facility.
The selection of location is a key-decision as large investment is made in building plant and machinery. It is not advisable or not possible to change the location very often. So an improper location of plant may lead to waste of all the investments made in building and machinery, equipment.
Before a location for a plant is selected, long range forecasts should be made anticipating future needs of the company. The plant location should be based on the company’s expansion plan and policy, diversification plan for the products, changing market conditions, the changing sources of raw materials and many other factors that influence the choice of the location decision. The purpose of the location study is to find an optimum location one that will result in the greatest advantage to the organization.
The concept of plant layout may be described as follows:
Plant layout is a plan for effective utilisation of facilities for the manufacture of products; involving a most efficient and economical arrangement of machines, materials, personnel, storage space and all supporting services, within available floor space.
More defines plant layout as follows:
“Plant layout is a plan of optimum arrangement of facilities including personnel, equipment’s, storage space, material handling equipment and all other supporting services along with the decision of best structure to contain all these facilities.”
Objectives/Advantages of Plant Layout:
Following are the objectives/advantages of plant layout:
(i) Streamline flow of materials through the plant
(ii) Minimise material handling
(iii) Facilitate manufacturing progress by maintaining balance in the processes
(iv) Maintain flexibility of arrangements and of operation
(v) Maintaining high turnover of in-process inventory
(vi) Effective utilisation of men, equipment and space
(vii) Increase employee morale
(viii) Minimise interference (i.e. interruption) from machines
(ix) Reduce hazards affecting employees
x) Hold down investment (i.e. keep investment at a lower level) in equipment.
Principles of Plant Layout:
While designing the plant layout, the following principles must be kept in view:
(i) Principle of Minimum Movement:
Materials and labour should be moved over minimum distances; saving cost and time of transportation and material handling.
(ii) Principle of Space Utilization:
All available cubic space should be effectively utilized – both horizontally and vertically.
(iii) Principle of Flexibility:
Layout should be flexible enough to be adaptable to changes required by expansion or technological development.
(iv) Principle of Interdependence:
Interdependent operations and processes should be located in close proximity to each other; to minimize product travel.
(v) Principle of Overall Integration:
All the plant facilities and services should be fully integrated into a single operating unit; to minimize cost of production.
(vi) Principle of Safety:
There should be in-built provision in the design of layout, to provide for comfort and safety of workers.
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