Page 35 - DMGT302_FUNDAMENTALS_OF_PROJECT_MANAGEMENT

Fundamentals of Project Management

Notes questions that may be raised in this context are: What is the present marketable surplus?
What is the present area under cultivation? What is the likely increase in yield per acre?
2. Mineral Products: In assessing mineral raw materials, information is required on the
quantum of exploitable deposits and the properties of the raw materials. The study should
provide details of the location, size, and depth of the deposits and the viability of open cast
or underground mining. In addition, information should be generated on the composition
of the ore, level of impurities, need for beneficiation, and physical, chemical and other
properties.
3. Livestock and Forest Products: Secondary sources of data on livestock and forest products
often do not provide a dependable basis for estimation. Hence, in general, a specific
survey may be required to obtain more reliable data on the quantum of livestock produce
and forest products.

4. Marine Products: Assessing the potential availability of marine products and the cost of
collection is somewhat difficult. Preliminary marine operations, essential for this purpose,
have to be provided for in the feasibility study.

Processed Industrial Materials and Components

Processed industrial materials and components (base metals, semi-processed materials,
manufactured parts, components, and sub-assemblies) represent important inputs for a number
of industries. In studying them the following questions need to be answered:
In the case of industrial materials, what are their properties?

What is the total requirement of the project?
What quantity would be available from domestic sources?
What quantity can be procured from foreign sources?
How dependable are the supplies?
What has been the past trend in prices?

What is the likely future behaviour of prices?

Auxiliary Materials and Factory Supplies
In addition to the basic raw materials and processed industrial materials and components, a
manufacturing project requires various auxiliary materials and factory supplies like chemicals,
additives, packaging materials, paint, varnishes, oils, grease, cleaning materials, etc. The
requirements of such auxiliary materials and supplies should be taken into account in the
feasibility study.

Utilities
A broad assessment of utilities (power, water, steam, fuel, etc.) may be made at the time of the
input study though a detailed assessment can be made only after formulating the project with
respect to location, technology, and plant capacity. Since the successful operation of a project
critically depends on the adequate availability of utilities, the following questions should be
raised while conducting the inputs study.

What quantities are required?
What are the sources of supply?

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