Technical study

It is one of the basic studies and is based on estimating the needs for providing products or services for a project, based on the data extracted from the marketing study, the administrative needs of human resources, the needs of fixed assets such as buildings, equipment, technical and technological needs, electronic devices, and determining the location of the project, meaning that it is a study of how to produce the product or how to provide service to customers.

The most prominent objective of the technical study preparation is to prepare the project data necessary to transfer it to the financial study, and the most important of these data is the outflows, i.e. a set of investment and operational costs of the project.

You can consider it the most important data that you extract from the technical study to be an important entrance to the financial study after that

We would like to inform you that you must be careful about objectivity while preparing it to avoid influential and negative repercussions such as insufficient production capacity or the presence of untapped production capacities, in addition to inflating investment and operational costs and increasing the percentage of production and return from customers.

Its importance comes from the dependence of other studies on their results, such as economic, social and environmental finance. You cannot conduct these studies without the presence of the technical study that decides the validity of the establishment of the project from a technical point of view. The technical and technological needs of the project vary, some of them require the provision of advanced technology and others do not require that, as we mentioned to you earlier, that the lack of keenness on the accuracy of the data, which may weaken the efficiency of the technical study, entails many problems, financial or marketing risks, but may lead to The worst case is the failure of the project.

The technical study is also known as the study of alternatives, as its content is to choose between alternatives at each stage, the choice is made between the sites and between different production methods and between the different offers of machines from different markets and different types of production technology, and the appropriate alternative is chosen from them among these alternatives in light of the possibility and objectives of the project

The technical study is also known as the study of alternatives, as its content is to choose between alternatives at each stage, the choice is made between the sites and between the different production methods and between the different offers of machines from different markets and different types of production technology, and the appropriate alternative is chosen between these alternatives in light of the possibility and objectives of the project.

One of the importance of technical study is that it benefits you in the following.

To reach the optimal size that is commensurate with the available material, financial and technical capabilities, taking into account the main role of the project site, which determines the size of the project, its production capacity, the costs incurred and the expected families from it.

There are many factors that affect the choice of project site and from them.

Providing land with the appropriate space and appropriate cost.

The impact of the project on the environment and thus the licensing and approval of the competent authorities.

The costs of transporting materials and products to the project site in terms of its distance or proximity to the markets.

Providing various services related to the project, such as the availability of extension services.

Determine the costs of establishing and establishing the project and are divided into.

Investment costs, which are the costs necessary to establish and equip the project until it becomes a metal to start operating and thus represent the elements of investment costs in those elements that are spent during the period from the moment the idea of the project appears and the preparation of my studies until conducting experiments to operate it, and examples of investment costs are the cost of purchasing machinery and equipment, transporting and installing them on site, buying the project land and establishing buildings on it.

Operational costs are operating costs in which the production activity reaches the energy level and annual operating costs represent production costs as well as marketing and administrative costs Examples of operational costs Salary costs of employees and workers in the project and the costs of buying seeds in an agricultural project.

The methods go beyond production and the technology used varies based on the nature of the project, there are products that depend more on the labor force, as it seeks, where it is called intensive production for workers, while again it focuses on the size of money and is called capital-intensive production, and finally production that depends on knowledge, projects related to patents, products and services that depend on research and development departments, and it is called a production that uses a lot of the knowledge component.

It also depends on the type of products and services provided, the nature of the production line, and others, for example, projects based on the provision of investment services require the method of production using the intensity of knowledge and experience, studies and research, and the methods also vary according to the capital of the project, economic conditions and the availability of resources, whether knowledge sources, human resources or financial resources, so based on the nature of the project you choose the production method that suits.

Any project usually depends on two types of resources, which are temporary resources needed at certain times, especially the early stages of establishing and producing the project, such as architects, installation engineers, or preliminary studies procedures, and permanent resources that the project needs continuously even after the end of the establishment period.

Technical needs before establishing the project

Administrative and marketing needs

Fixed asset needs

Current asset needs

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