EDP Notes

Technical analysis of a project is essential to ensure that necessary physical facilities required for
production will be available and the best possible alternative is selected to procure them. The object
of technical analysis is to assess the technical soundness of the project. This is considered essential
for the long term success of the project.
Technical analysis includes the study of the following:
1) MATERIAL INPUTS: It is essential to assess the availability of materials, inputs and
utilities. Utilities include power, water, steam, fuel, communication facilities, transport facilities
etc. The feasibility study of material should include the following variables:
(a) The availability of quality and quantity of raw material.
(b) Price elasticity of raw material.
(c) Perishable time of raw material.
(d) The factors on which the availability of raw material is depended.
2) MANUFACTURING PROCESS/TECHNOLOGY: Technologies simply refers to the
tools, devices and knowledge that help in the transformation of inputs into outputs. It is the
application of knowledge, encompassing the related concepts of science, innovation, invention and
discovery. It is the application of scientific knowledge to practical commercial purpose.