Download - How to Make Feasibility of A Mega Project by Tariq Sarwar Awan Food Technologist & Engr. Saima Khoro
How to Make Feasibility How to Make Feasibility of a Projectof a Project
ByByEngr. Saima Khoro BE & MS (Electrical/Electronics), andMr. Tariq Sarwar, Food Technologist, Nasir Flour Mills, Lahore, Chairman Research and Recommendations Wing, Pakistan Flour Mills Association.
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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TYPES OF FEASIBILITIES FOR THE PROJECTTYPES OF FEASIBILITIES FOR THE PROJECT
Preliminary FeasibilityPreliminary Feasibility
Full Scale FeasibilityFull Scale Feasibility
Bankable FeasibilityBankable Feasibility
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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PRELIMINARY FEASIBILITYPRELIMINARY FEASIBILITY
Availability of the Raw MaterialAvailability of the Raw Material Water Water PowerPower FuelFuel Soil TestSoil Test Effluent DisposalEffluent Disposal Finished Product Demand Market StudyFinished Product Demand Market Study
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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THE BASICSTHE BASICS
The Size of the Mill with The Size of the Mill with Recommended CapacityRecommended Capacity
The Targeted Marketing AreaThe Targeted Marketing Area
Penetration PossibilitiesPenetration Possibilities
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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FULL SCALE FEASIBILITYFULL SCALE FEASIBILITY
It should not be prepared by self but it It should not be prepared by self but it should be done by any professional with should be done by any professional with deep study in the Same Field.deep study in the Same Field.
Complete market Scenario Complete market Scenario Actual Financial aspectsActual Financial aspects Financial ForecastsFinancial Forecasts Ten year Plan Ten year Plan
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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BANKABLE FEASIBILITYBANKABLE FEASIBILITY
Should be prepared by Trade Specialist Should be prepared by Trade Specialist like senior Food Technologist specially like senior Food Technologist specially any Food Technology Professor in any any Food Technology Professor in any University in consultation with Financial University in consultation with Financial and costing expert who is dealing to and costing expert who is dealing to banks from ten years minimum.banks from ten years minimum.
Machine Specification Book (Precise)Machine Specification Book (Precise) Should be prepared in a manner Should be prepared in a manner
acceptable to Bank.acceptable to Bank.
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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ADEQUATE SITE SELECTION CRITERIAADEQUATE SITE SELECTION CRITERIA
Criteria for selection of SiteCriteria for selection of Site Infra structure RequiredInfra structure Required Area RecommendedArea Recommended Recommended Location of SiteRecommended Location of Site Land RequirementLand Requirement Proposed Construction Plan with CostProposed Construction Plan with Cost
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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ADEQUATE FINISHED PRODUCT MARKETADEQUATE FINISHED PRODUCT MARKET
Local Market of PakistanLocal Market of Pakistan Export Market ScenarioExport Market Scenario List of Importer Countries in the World with List of Importer Countries in the World with
their import quantity and rate of importtheir import quantity and rate of import Acceptable Market LogisticsAcceptable Market Logistics TransportTransport DutiesDuties Costing Factor Costing Factor
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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FACTORY REQUIREMENTSFACTORY REQUIREMENTS
Raw Material TransportRaw Material Transport Process water (treatment plant, etc, Process water (treatment plant, etc,
Quality check options)Quality check options) Effluent DisposalEffluent Disposal Transport Finished ProductsTransport Finished Products Labor and Housing AvailabilityLabor and Housing Availability Expansion facilities and space.Expansion facilities and space.
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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ADEQUATE CAPITAL COST ADEQUATE CAPITAL COST ESTIMATEESTIMATE
Plant Cost Plant Cost Plant Cost with AutomationPlant Cost with Automation Phases of Plant Up-gradation plan year Phases of Plant Up-gradation plan year
wisewise Infra-structure CostInfra-structure Cost Financing Cost During Construction and Financing Cost During Construction and
StartupStartup Working Capital including training Cost.Working Capital including training Cost.
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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FANANCING STRUCTUREFANANCING STRUCTURE
Debt. Equity Ratio and AvailabilityDebt. Equity Ratio and Availability Net Cash flow for Debt. ServicingNet Cash flow for Debt. Servicing Sensitivity AnalysisSensitivity Analysis1- Market Price Analysis and Cyclicity1- Market Price Analysis and Cyclicity2- Raw Material Cost Fluctuations2- Raw Material Cost Fluctuations Return of InvestmentsReturn of Investments Recommended Life span of PlantRecommended Life span of Plant Saturation Probability Study of Saturation Probability Study of
international standardinternational standard
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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PROCEDURE FOR FINANCIAL ANALYSISPROCEDURE FOR FINANCIAL ANALYSIS
Profit and Loss statement Profit and Loss statement Cash Flow Charts and Statement Cash Flow Charts and Statement Sensitivity AnalysisSensitivity Analysis Projected Balanced SheetProjected Balanced Sheet Expected Sale Trends with last 5 years Expected Sale Trends with last 5 years
reference and proposed for next 5 years.reference and proposed for next 5 years.
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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DETAILED PLANS BOOKLETDETAILED PLANS BOOKLET
Plan for obtaining Raw Material Plan for obtaining Raw Material Construction Plan with Structural Construction Plan with Structural
DrawingsDrawings Training plan local or ForeignTraining plan local or Foreign Operations PlanOperations Plan Phases of various plans if needed in the Phases of various plans if needed in the
specific section Booklet.specific section Booklet.
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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SITE PLANSSITE PLANS
Selection of SiteSelection of Site TopographyTopography Socio-Economic StatusSocio-Economic Status Environmental aspectsEnvironmental aspects Fundamental AssumptionsFundamental Assumptions General Economic BackgroundGeneral Economic Background Political Stability.Political Stability.
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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DESCRIPTION OF PROCESS & DESCRIPTION OF PROCESS & MILL ANCILLARIESMILL ANCILLARIES
Power Generation (if Required)Power Generation (if Required) RecoveryRecovery Effluent TreatmentEffluent Treatment Electrolytic PlantElectrolytic Plant Maintenance ShopMaintenance Shop Lab Development for Quality assurance Lab Development for Quality assurance
according to ISO standards according to ISO standards Bid from SuppliersBid from Suppliers
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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LAYOUTS & AUTOMATION LAYOUTS & AUTOMATION PLANPLAN Complete Line Flow DiagramComplete Line Flow Diagram Technical Layout with specificationsTechnical Layout with specifications Placement plan with foundations ready for Placement plan with foundations ready for
installation at Specific spot, (be careful about installation at Specific spot, (be careful about placing, height, non-disturbed flow of placing, height, non-disturbed flow of material)material)
Automation of Feeding at startAutomation of Feeding at start Speed Check facilitiesSpeed Check facilities Sensors provisionSensors provision Linkage in line with automationLinkage in line with automation Auto weighing and auto packing unitAuto weighing and auto packing unit Conveyors till warehousesConveyors till warehouses
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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PROCESS ESSENTAILSPROCESS ESSENTAILS
List of Raw material requiredList of Raw material required Cost of Raw material per tonCost of Raw material per ton Accessories availability assuranceAccessories availability assurance List of raw material to be imported and its List of raw material to be imported and its
fluctuation history and graphical fluctuation history and graphical representationrepresentation
SparesSpares Availability of Clean WaterAvailability of Clean Water
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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METHODS AND PLANSMETHODS AND PLANS Operations Covering MethodOperations Covering Method Data and Production PlanData and Production Plan Tests and Sources of Information on YieldsTests and Sources of Information on Yields Raw material characteristicsRaw material characteristics Man power requirement stages and their Man power requirement stages and their
employment planemployment plan HR DevelopmentHR Development Recommended staff and their wages ratesRecommended staff and their wages rates Organization ChartOrganization Chart Schedule of EmployeesSchedule of Employees Training ProgramTraining Program Accommodation PlansAccommodation Plans
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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ESTIMATION & COSTINGESTIMATION & COSTING
Manufacturing costManufacturing cost Capital cost requirementCapital cost requirement Escalation FactorEscalation Factor ContingenciesContingencies Interest During ConstructionInterest During Construction Other ExpendituresOther Expenditures
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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FINANCIAL FACTORSFINANCIAL FACTORS
Plan Financial institutionsPlan Financial institutions Payout periodPayout period Is payout period enough or extension Is payout period enough or extension
requiredrequired Indicators of anticipated interest ratesIndicators of anticipated interest rates Terms and grace periodsTerms and grace periods Proposed methods of foreign and local Proposed methods of foreign and local
financing and documents requirementsfinancing and documents requirements
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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ORDER OF MAGNITUDE ORDER OF MAGNITUDE with Basic Parameterswith Basic Parameters
Capital Cost EstimationCapital Cost Estimation
Operating Cost EstimationOperating Cost Estimation
Selling Price ProjectionsSelling Price Projections
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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Executive Summary for BOD/ Executive Summary for BOD/ CEOCEO
Executive Summary should be precise Executive Summary should be precise covering all the Important factors, covering all the Important factors, highlighting every aspect to understand highlighting every aspect to understand every thing to foresee the viability of the every thing to foresee the viability of the Project and its suitability.Project and its suitability.
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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Method to be Adopted by Method to be Adopted by CEO/ MD/ BODCEO/ MD/ BOD
Hand over responsibilities to skilled people.Hand over responsibilities to skilled people. Supervise and supportSupervise and support Get daily/ weekly Progress report with presentaionGet daily/ weekly Progress report with presentaion Monthly BOD meeting and grand presentationMonthly BOD meeting and grand presentation Give Deadlines to responsible.Give Deadlines to responsible. Remember…….Men at Work, Your Money at Work.Remember…….Men at Work, Your Money at Work. No relaxation for time frame to any one, deadline is No relaxation for time frame to any one, deadline is
a deadline.a deadline. Most important factor to remember…….YOU WILL Most important factor to remember…….YOU WILL
KEEP EXPENSING, TILL YOU START YOUR KEEP EXPENSING, TILL YOU START YOUR FACTORY, SO START FACTORY AND START FACTORY, SO START FACTORY AND START EARNING…………..EARNING…………..
Engr. Saima Khoro / Tariq Sarwar Engr. Saima Khoro / Tariq Sarwar Awan Food Technologist Awan Food Technologist
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Best Wishes for Success Best Wishes for Success Transworld TeamTransworld Team
Engineer Saima Khoro BE Electrical/ Engineer Saima Khoro BE Electrical/ Electronics, MS Electrical/Electronics Electronics, MS Electrical/Electronics with Kind Support of Mr. Tariq Sarwar, with Kind Support of Mr. Tariq Sarwar, Food Technologist, CEO Nasir Flour Food Technologist, CEO Nasir Flour Mills & Chairman Research and Mills & Chairman Research and Recommendations Wing, Pakistan Flour Recommendations Wing, Pakistan Flour Mills Association, Head Office, Lahore.Mills Association, Head Office, Lahore.