PRODUCTION OR TECHNICAL FEASIBILITY

PRODUCTION

 The processes and methods used to transform tangible

inputs (raw materials, semi-finished goods,
subassemblies) and intangible inputs (ideas,
information, knowledge) into goods or services.
Resources are used in this process to create an output
that is suitable for use or has exchange value.

http://www.businessdictionary.com/definition/production.html
TECHNICAL FEASIBILITY

IT REFERS TO THE DESCRIPTION OF

RATIONALE OF HOW COMPANY
CREATES, DELIVERS AND CAPTURES
VALUE FOR ITSELF AS WELL AS THE
CUSTOMERS.
TECHNICAL FEASIBILITY

A technical feasibility study assesses the

details of how you intend to deliver a
product or service to customers. Think
materials, labor, transportation, where
your business will be located, and
the technology that will be necessary to
bring all this together.
 TECHNICAL FEASIBILITY REQUIREMENTS
OF THE BUSINESS
 Are enough raw materials of the correct quality available
when needed for year-round production?
 Is the cost of the raw materials satisfactory?

 Are the correct size and type of equipment available for

the expected production level and is it at a reasonable
cost?
 Can it be made by local workshops?

 Are maintenance and repair cost affordable?

 TECHNICAL FEASIBILITY REQUIREMENTS
OF THE BUSINESS

 Are sufficient information and expertise available

to ensure that the food is consistently made at the
required quality?
 Are suitable packaging materials available and
affordable?
 Are distribution procedures to retailers or other
sellers established?
 TECHNICAL FEASIBILITY REQUIREMENTS
OF THE BUSINESS

 Is a suitable building available? What

modifications are needed?
 Are services (fuel, water, electricity) available and
affordable?
 Are trained workers available and are their salaries
affordable?
 CONTENTS OF PRODUCTION OR
TECHNNICAL FEASIBILITY
1. Production Planning
This plan should indicate how the different stages in a
process are linked together. It should identify any
“bottlenecks” in the process, the equipment that is
required for each stage and where quality assurance
procedures should be used.
The data that has been found from market surveys is
added to the process chart to indicate the scale of
production that is required.
 CONTENTS OF PRODUCTION OR
TECHNNICAL FEASIBILITY
2. Raw Materials and Ingredients
It is necessary to calculate the amount
of each ingredient that will be needed to
formulate a batch of products.
It is necessary to calculate the amount
of losses that can be expected during
preparation.
 CONTENTS OF PRODUCTION OR
TECHNNICAL FEASIBILITY

3. Equipment Required
The decisions on equipment requirement are influenced by
the following:
 The cost and availability of machinery
 The availability of people who are skilled in maintenance
and repair
 The availability and cost of spare parts and the possibilities
of local equipment fabrication.
 CONTENTS OF PRODUCTION OR TECHNNICAL
FEASIBILITY

4. Packaging
Selection of packaging materials frequently causes the
largest problems for small producers and is often the main
causes of delay in getting a business established.
Considerations include the following:
 Technical requirements of the product for protection
against light, crushing, air, moisture.
 Promotional and marketing requirements.

 Relative cost and availability.

 CONTENTS OF PRODUCTION OR TECHNNICAL
FEASIBILITY

5. Staffing Levels
Decisions on the number and types of workers that are
required to operate the proposed business are taken in
conjunction with decisions on equipment procurement.
Creating of different stages and departments.
It is also important to include functions such as store
management, quality assurance and bookkeeping when
planning employment levels.