M3 - Lesson 3.3 Technical Aspect 1
M3 - Lesson 3.3 Technical Aspect 1
M3 - Lesson 3.3 Technical Aspect 1
PROJECT FEASIBILITY
STUDY
The Technical Aspect
Learning Outcomes
1. Construct graphical representation of how inputs
are transformed into outputs.
2. Participate in estimating fixed assets and materials
and supplies requirements.
3. Forecast annual production volume based on
market demand and plant capacity.
4. Create the technical study write-up.
The Technical Aspect
• production process
discusses how the
products will be produced,
specifying each step and
time that will be involved
Annual Depreciation = Purchase Value-Scrap value/ Life span [Straight Line Method]
• Type and cost of building and land, as envisioned in the project should be presented
• For buildings, state purpose and justification computation for the cost of the building.
This includes the determination of the life of the building as well as the depreciation
method to be used.
• For rent a building, determine the historical and the current rent to project the rentals
F. Tools, Machineries and Equipment
• List down all the raw materials used to produce the product (direct materials)
• Discuss sourcing of these materials
• Relate to the production method
G. Raw Materials and Supplies Requirement
• describes the amount, cost, and sources of utilities fuel, water, and electricity.
I. Direct Labor Requirement
• What specific direct labor requirements are needed to produce the goods or
deliver the service?
• Are there enough direct laborers to produce the goods?
• How long it will take, in terms of number of hours, to produce the good?
• How much is the minimum daily wage of every worker per day or per hour in the
community?
J. Expected Production Level
A. Operational Scenarios
Sample activities:
Feasibility study
Accumulate funds
Process license for operation
Acquisition of land and building of plant
Acquire machineries
Hiring of employees
Purchase raw materials
L. Waste Disposal
Calayag, EH & Valenzuela, EE. 2019. Feasibility Study Guidelines for Undergraduate Courses. Great
Books Publishing. Quezon City, Philippines.
Aduana, Nick L.2015. Writing Project Feasibility Study. C&E Publishing Inc. Quezon City, Philippines.
Cuyugan, Jorge H. 2001. A Business Planning Manual: A Project Feasibility Study Guidebook for
Filipino Students and Entrepreneurs.
Kotler, P & Keller, KL. 2012. Marketing Management. Pearson Education, Inc., publishing as Prentice Hall,
One Lake Street, Upper Saddle River, New Jersey 07458
Teves, Joviel. Feasibility Study Handbook (unpublished). Dept. of Business Management, Visayas State
University. Baybay City, Leyte.
WORKSHOP 4 – Technical Study
Supply the following aspects in relation to the project/product/service you are working on.
• The Product
• Production Method
• Plant Size and Location
• Plant Layout
• Land and Building Requirements
• Tools, Machineries and Equipment Requirements
• Raw Materials and Supplies Requirement
• Utilities Requirement
• Direct Labor Requirement
• Expected Production Level
• Production Cost
• Operational Scenarios
• Waste Disposal