Page 63 - DMGT521_PROJECT_MANAGEMENT

Project Management

Notes

Task Discuss about Technical Analysis in Project Management.

4.7 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: (i) raw materials,
(ii) processed industrial materials and components, (iii) auxiliary materials and factory supplies,
and (iv) utilities.

Raw Materials

Raw materials (processed and/or semi processed) may be classified into four types:
(i) agricultural products, (ii) mineral products, (iii) livestock and forest products, and (iv) marine
products. These are explained below:
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
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?

58 LOVELY PROFESSIONAL UNIVERSITY