TECHNICAL

APPRAISAL
ERNIE T. VILLANUEVA
APRIL ROSE S. DIMPO
PA 211
Group VI
Appraisal - to evaluate
the worth, significance, or
status of.
- an act of
assessing something.

Syn. Assess, estimate, valuate, evaluate

Technical Appraisal – is the technical
review to ascertain that the project is
sound with respect to various
parameters such as technology, plant
capacity, raw material availability,
location, manpower, etc.
WHY
TECHNICAL
APPRAISAL
SHOULD BE
CONDUCTED
Importance of Technical Appraisal:

1. It ensures that the project is

technically feasible – all inputs required
to set up the projects are available.
2. It facilitates the optimal project
formulation in terms of capacity,
technology, location, etc.
Usually, technical appraisal is carried
out by independent agencies carrying
out technical studies or by the institution
by their in-house technical experts.
ASPECTS OF
TECHNICAL
APPRAISAL
ASPECTS OF TECHNICAL
APPRAISAL
1. Technology / Manufacturing process
2. Technical arrangements
3. Material Inputs and Utilities
4. Product Mix
5. Plant Capacity
6. Location and Site
7. Machineries and Equipment
8. Structures and Civil Works
9. Environmental Aspects
ASPECTS OF TECHNICAL
APPRAISAL

1. Technology / Manufacturing Process

Often two or more alternative technologies

available. The choice of technology is
influenced by a variety of considerations; such
as plant capacity, latest development and
ease of absorption.
ASPECTS OF TECHNICAL
APPRAISAL

2. Technical Arrangement – technical

collaborators or consultant

3. Materials Inputs and Utilities – it

categorizes into:
3.1. raw materials
3.2. processed industrial material and
components
3.3. auxiliary materials and factory
3.4. utilities
ASPECTS OF TECHNICAL
APPRAISAL

4. Product Mix – it is important for the unit to

have flexibility* to alter its product mix to
survive in changing market conditions
*- producing goods/services to cater ever-demanding needs of
the customer.

5. Plant Capacity – number of units or

volume that can be produced during a given
period.
ASPECTS OF TECHNICAL
APPRAISAL
6. Location or Site

- Must be Strategic

Location should be close to sources of raw

materials or to the consumption markets.
Accessibility by transportation is also vital.
Power should be available – cost effective,
cheap, uninterrupted. Water availability is also
crucial.
ASPECTS OF TECHNICAL
APPRAISAL

7. Machineries and Equipment

Smooth flow of production can be achieved if

the various stages are matched well. External
consultants must be employed for proper
selection of machineries and equipment
ASPECTS OF TECHNICAL
APPRAISAL

8. Structures and Civil Works

comprises of:

– site preparation & development

– buildings and structures
– outdoor works
ASPECTS OF TECHNICAL
APPRAISAL

9. Environmental Aspects

Polluting units should be set-up in approved

industrial zones and where permission from
Pollution Control Board is available. Effluent
Treatment Plant (ETP) should be available to
neutralize the output waste.

Ex. Pollution Control Officer

Thank
you !!!