Page 34 - DMGT302_FUNDAMENTALS_OF_PROJECT_MANAGEMENT

Unit 2: Project Analysis and Selection

2. Whether the technology utilises local man power? Notes
3. Whether the goods and services produced cater to the basic needs?
4. Whether the technology protects ecological balance?
5. Whether the technology is harmonious with social and cultural conditions?

Technical Arrangements

Satisfactory arrangements must be made to obtain the technical know how needed for the
proposed manufacturing process. When collaboration is sought, inter alia, the following aspects
of the agreement must be worked out in detail:
1. The nature of support to be provided by the collaborators during the designing of the
project, selection and procurement of equipment, installation and erection of the plant,
operation and maintenance of the plant, and training of the project personnel.
2. Process and performance guarantees in terms of plant capacity, product quality, and
consumption of raw materials and utilities.
3. The price of technology in terms of one time licensing fee and periodic royalty fee.
4. The continuing benefit of research and development work being done by the collaborator.
5. The period of the collaboration agreement.

6. The assistance to be provided and the restrictions to be imposed by the collaborator with
respect to exports.
7. The level of equity participation and the manner of sharing management control, especially
if the technical collaboration is backed by financial collaboration.
8. Assignment of the agreement by either side in case of change of ownership.
9. Termination of the agreement or other remedies when either party fails to meet its
obligation.
10. Approach to be adopted in force majeure situations.

Task Discuss about technical analysis in project management.

2.7 Material Inputs and Utilities

An important aspect of technical analysis is concerned with defining the materials and utilities
required, specifying their properties in some detail, and setting up their supply programme.
There is an intimate relationship between the study of materials and utilities and other aspects
of project formulation, particularly those concerned with location, technology, and equipments.
Material inputs and utilities may be classified into four broad categories:

Raw Materials

Raw materials (processed and/or semi-processed) may be classified into four types:

1. Agricultural Products: In studying agricultural products, the quality must first be examined.
Then, an assessment of the quantities available, currently and potentially, is required. The

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