Page 114 - DMGT521_PROJECT_MANAGEMENT

Unit 7: Market and Demand Analysis

may also offer certain unique features. However, newly emerging technologies may have Notes
some inherent dangers as well.
What is important for formulating a successful project is to weigh available alternative
technologies and select the one that is most appropriate in the prevailing situation, rather
than blindly adopt the latest, state-of-the-art technology assuming that it will work since
it works elsewhere. A technology is considered appropriate only if it is assessed to be
satisfactory, and relevant, vis-à-vis the following aspects in lie specific situation of the
project.
(a) Specifications of the task/product.
(b) Task uncertainties and interdependence.

(c) [Especially for public sector] Developmental imperatives (e.g. growth of
employment; maximising use of local resources; reduction of disparities in income
levels).
(d) Required gestation period versus the time actually available of the project.
(e) Source(s) and ease of availability. [Remember the Cray super computer deal between
USA and India’?]
(f) Indigenous availability of comparable technology.
(g) Field validation status in comparable situations. If necessary, field trials may have
to be set up.
(h) Adaptability to the qualitative characteristics of the locally (or indigenously) available
resources including energy and efficiency in their usage.

(i) Dependence on nonrenewable sources of energy.
(j) Capacity of the organisation to absorb/adopt the technology.
(k) Required operational parameters of ambient environment. For example, a technology
which has proven itself in cold climates may fail in tropics.
(l) Timely availability of manpower with requisite skills for installation, operation
and maintenance.

(m) Cost of’ acquisition, installation, repairs and maintenance versus availability of
funds (local/foreign).
(n) Safety characteristics.

(o) Requirement or availability of R & D facilities.
(p) Environmental and socio cultural sensitivities.
(q) Likelihood, and time frame, of obsolescence.
After the existing technologies have been ranked on the basis of the above point, these
have to be further assessed vis-à-vis acquisitional aspects, viz., the available modes of
procuring it and the associated costs in focal or foreign currencies. The important questions
to be asked include: Is the technology available as a technical know-how, or through a
technical collaboration, or a joint venture? Are patents, trademarks, or licensing involved?
At what terms and with what legal obligations? Will it tie down the investor to procure
equipment(s) as well from a specific country or company?

5. Design, Layout and Plant and Machinery: The feasibility study should broadly specify
the recommended design of the processes and plant (giving essential assumptions and

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