Formulation and Evaluation A project is a temporary endeavor that takes out to create a product, service or result, as you can demonstrate the intuition and good sense of the investor or idea generator is not enough collateral to demonstrate proficiency in the use of production factors, so that if there Technical study - Economic endangers the success of the project to be possible to make poor decisions about the type of product, location, selection of production processes, business organization, production planning and use of financial resources.
The application of knowledge, processes, skills, tools and techniques can have a considerable impact on the success of a project.
1 Overview 1.1 1.1.1 Identification or Company Name of Applicant
1.1.2 Plant Location
1.1.3 Legal address of the company
1.1.4 location of administrative offices
1.1.5 Economic activity in which it operates and International
Industrial Classification (ISIC)
2 Legal and Administrative Background 2.1 Legal Background:
2.1.1 Legal form of company
2.1.2 Date of incorporation and registration
2.1.3 Term and subsequent legal developments (submit a copy of the deed and its amendments)
2.1.4 Legal representative of the company
2.1.5 Social Capital 2.1.6
Payroll shareholders (Table No. 1)
2.1.7 Linkage with other existing businesses: 2.1.7.1
shareholding of shareholders in other companies
2.1.7.2 shareholding of the company in other companies 2.1.8
Payroll
board
2.1.8.1 term of office of its members
2.1.8.2 business background and credit of the same
2.2 Administrative Background:
2.2.1 Business Organization:
- Main functions of the administrative and technical units (file organization)
2.2.2 Executives and Technicians main
Experience
- those related to the project
2.2.3 Employment in the last three years
The tables are then used will be included mentioning the chapter number and number of box and will incorporated into the project frame rate.
3. Financial Information 3.1 Balances and audited income statements for the past five years, with their detailed schedules
3.2 current appropriations by the company:
3.2.1 Sources of funding and banks
Destinations 3.2.2 3.2.3
grant date value 3.2.4 3.2.5 3.2.6 Term Balance 3.2.7
date Expiry date 3.3 States personal financial situation, if individual developers are both shareholders of the company that will implement the project. 4 Background
4.1 Operating
4.1.1 Commercial Developments product lines the company
4.1.2 Evolution of the sales in units and values \u200b\u200bfor the last five years.
Capacity 4.2 installed and their use in the past five years
4.3 Technical Evolution 4.3.1 Stages and characteristics of the production process
4.3.2 Technologies used and their origins
4.3.3 Machinery and equipment in use:
4.3.3.1 Number of units
Source
4.3.3.2 4.3.3.3 4.3.3.4 Mark Year of manufacture 4.3.3.5 Year of purchase 4.3.3.6 Years of use
4.3.3.7 Throughput 4.3.3.8 Estimated value at the date
4.3.4 Background other projects completed by the company and its results
4.4 Evolution of the structure of costs for the last five years, of which: 4.4.1
4.4.2 Direct costs Costs 4.4.3
manufacturing administrative expenses Selling 4.4.4
4.4.5 Financial costs
5 Project Summary The main objective is to obtain a summary description of the project, considering here an overview of the main features, in order to present a clear picture of what is to raise out in relation to the activities to develop and highlight aspects of the physical works, structure and financial investment, location, etc..
5.1 Brief project description (brief form in which the project is executed, taking into account the following
5.1.1 Rama or economic activity
5.1.2 Geographical location and area of \u200b\u200bland to use Real
5.1.3 to 5.1.4
produce market oriented products to
5.1.5 type investments to be made
5.1.6 Total Project Cost
5.2 Objectives and rationale (features that highlight the similar project, technology, comparative advantages or benefits of their implementation)
In the case of extensions, a description of the current status of each of the above aspects and establish its relationship with the expansion project.
6 Market Analysis
The importance of market research is that it lets you view the future demand for goods and services to produce, the area surrounding the market, competitive information, prices of goods, distribution channels and other aspects and based on these set with a high degree of approximation, the size of the project, set the price of goods to produce, the marketing policy and all activities that help to project success.
All this has great impact on the viability of the project noted, so that the evaluation of it, should pay special attention to market research.
In this sense, a bad market sizing can lead to establish an inadequate size of plant capacity, ie, if the capacity is less than required, would be insufficient to meet demand and this will affect the profitability of project, or, conversely, if idle capacity, and have an adverse effect on the cost, jeopardizing the viability of the project.
other hand, list the products that will be made with the implementation of the project, indicating uses and characteristics of good produce, determines also the country or region where it is consumed, market capacity, the same projections. The figures and corresponding indexes must be appropriately based on official statistics obtained by sampling investigations, surveys and secondary research or special studies for the case that the technical conditions required
6.1 Product
6.1.1 products and byproducts to be produced according to the project
6.1.1.1 Products 6.1.1.2
develop physical characteristics: size, varieties, colors, etc.. 6.1.1.3
Qualities: characteristics, definition of quality, range and standards 6.1.1.4
container and packaging system using
6.1.2 List of substitute products
6.2 domestic and external market
6.2.1
historical market behavior
6.2.1.1 Definition of geographical area or area of \u200b\u200binfluence will be included in the analysis history.
6.2.1.2 Apparent consumption for the last five years.
6.2.1.3 Major suppliers and their percentage share in the market. 6.2.1.4
consumer features, significant levels of income, age, sex, profession or trade.
6.2.1.5 Evolution of unit prices of the last five years, wholesalers and consumers considering
6.2.1.6 Consumption of substitutes in the last five years. 6.2.2
future market behavior
6.2.2.1 apparent consumption projections for a period of five years. 6.2.2.2
Insights on future developments related to the price, tariffs, customs controls and incentives
6.2.3
historical behavior of the external market for countries with an import of the type of good or goods to be manufactured. 6.2.3.1
import figures of the countries in the last five years, indicating the volume in units, value and country of origin, and seasonality, if any.
6.2.3.2 Value and volume of exports from countries in the last five years
6.2.3.3 countries' domestic production with an import the good or goods to be produced by the project
6.2.3.4 Determination of apparent consumption for the last five years
6.2.3.5 Requirements in importing countries concerning taxes, quality standards, health checks, volumes maximum tariffs, licensing and other
6.2.3.6 bilateral or multilateral agreements that affect trade in the countries of destination. 6.2.3.7
distribution channels to export goods, indicating major distributors in the case of existing companies and contacts have been made in the case of a new project. 6.2.3.8
Price developments in destination countries over the past five years. 6.2.4
external market's future behavior
6.2.4.1 Projection of apparent consumption over a period of five years for countries with opportunities to import goods to produce.
6.2.4.2 Findings on future evaluation related to the price, tariffs, customs controls, international conventions, etc.
6.2.5 Delimitation or national market coverage and external project. The analysis of future supply and demand can define the market segment that could be supplied by the project
6.2.5.1 Features consumers in the domestic market, considering the level of income, age, profession or trade. 6.2.5.2
Estimated sales volume in units for five years. 6.2.5.3 Possible
customers or products on the domestic market
6.2.5.4 Identification of a country or geographic area that make up its external market.
6.2.5.5 Special features of the products for export.
6.2.5.6 Assessment of the volume of unit sales by country for five years
Program 6.2.5.7 export growth for a period of five years. 6.2.5.8 Possible
customers or products in foreign markets.
Reference Unit prices for the project countries. These prices are denominated in dollars, considering the prevailing exchange rate between the dollar and the currency of the country where it intends to export.
6.2.5.9 Export incentives in the country, apply to the project.
7 Raw Materials and Materials In general, companies for their operations require some assets, some of which come to constitute an essential part of good produced, also require other property which, while important not become part of the product.
7.1 Raw Materials. For each of the raw materials used in the production process, we consider the following elements: 7.1.1
Features: Country of origin, supplier, quality, availability in the market and any other features that are considered relevant
Prices
7.1.2 7.1.2.1
local raw materials (ground) 7.1.2.2
imported raw materials (CIF plus internal transport and other costs of hospitalization)
7.1.3 Annual quantities of materials premiums, both local and imported. Criteria were used to determine the volumes required annually. 7.1.4
delivery times for each of the main raw materials, both local and imported.
7.1.5 Alternative sources of supply, indicated the country of origin, suppliers
7.2 Materials. For the main materials used are considered:
7.2.1 Main characteristics: country of origin, supplier, quality and availability in the market. 7.2.2 Pricing 7.2.2.1
local materials (ground)
7.2.2.2 Imported materials (CIF plus internal transport and other costs of hospitalization)
7.3.1 7.3 STORAGE Express the criteria used to set the volumes to be kept stored for a supply or, for the second, it specifies the machinery, equipment and civil works which will identify the scale of investment and operation costs plant and, finally, in the final phase produces the detailed design of the plant and makes a preliminary estimate of the investment and implementation costs of the plant
8 Location From the study
market and taking into account issues of financial, economic and engineering as well as the strategy defined by the business, establishing the size project and location of the plant.
Project 8.1 Capacity 8.1.1 Definition 8.1.1.1
size of actual production capacity, with shifts and work days per year during the first five years of the project.
8.1.1.2 Potential for expansion of installed capacity, with the new investments that are required for each extension with reference to the study
8.1.2 Justification
8.1.2.1 Capacity Analysis of the relationship between plant capacity and market size, considering the evolution of this during the first five years of the project
8.1.2.2 Analysis of the relationship between availability and characteristics raw material and plant capacity
8.1.2.3 Justification of capacity, subject to availability and qualification of manpower, financial and other conditions considered determinants
8.1.2.4 Justification of capacity in relation to the technological alternatives and economies of scale
8.2 Location 8.2.1 Description of the geographic location of the project area location
8.2.1.1: 8.2.1.2
location map of the terrain
Distribution 8.2.2 General description of the conditions of the project site that were key factors in their location
8.2.2.1 Existing infrastructure and supporting facilities: housing, electricity, roads, water, drainage, waste treatment according to current regulations. 8.2.2.2 Availability
labor
8.2.2.3 Availability of raw materials and materials: major sources of supply and shipping ports
8.2.2.4 Fuel: main sources and distances 8.2.2.5
consumer markets and ports for export shipment
9. Engineering Project Engineering Project aims to provide the information to make a technical evaluation of this and establish the basis on which to build and install the plant, if the project proves feasible. The project engineering is done in three phases: the first is to obtain information necessary for the adoption of appropriate production process, the second specifying the machinery, equipment and civil works which will identify the magnitude investment and operating costs of the plant and the last, to develop the detailed design of the plant and make a preliminary estimate of the investment and implementation costs of the plant.
In summary, the engineering of the project should include a simplified description of the process, using diagrams that display the different stages of transformation who will suffer the raw materials and to become the final product also must understand the technology used and the respective physical means of production.
9.1 Description of the manufacturing process
9.1.1 Process diagram showing the stages and their durations, and performance capabilities
9.1.2 distribution diagrams of the plant in the ground and areas for future expansion
9.1.3 path diagrams, flow of raw materials to produce the final product. 9.2
Technologies 9.2.1 Describe the technologies used and their origins
9.2.2 How the technology will be acquired
9.2.3 Annual costs for the use of technology, such as royalties and other compensation
9.2.4 Justification for the adopted technology, size, versatility, use of labor. 9.3
production program. Once projected sales for the first years of operation of the company, the feasibility study should define the production schedule indicating the volume for each item to be produced annually, according to market capacity and the plant, a period of five years. The production schedule is expressed in units, as detailed in Table No. 2 Physical Media Physical Media 9.4
production 9.4.1 Production
Land Surveying
9.4.1.1 9.4.1.2
measures and total area 9.4.1.3 area affected by the project based on a map of land use, which should be part of the employer Annexes incorporated in the feasibility study
9.4.2 Civil engineering works 9.4.2.1
civil engineering works by means of the classification in site preparation, construction, civil engineering works Special Buildings
9.4.2.2 for ancillary services, productive area, management, storage (capacity), other services
9.4.2.3 Drawings of the areas to be built. These plans must be submitted with the approval appropriate agencies
9.4.3 Machinery and equipment
9.4.3.1 Main technical features: state capacity and power consumption.
9.4.3.2 Amount of each of the machines and equipment
plan 9.4.3.3 Unit Price (CIF plus internal transport and other costs of hospitalization)
9.4.3.4 Cost 9.4.3.5 Setting and monitoring
Total Costs machinery and equipment
9.4.4 Parts of running applications and accessories. Main technical specifications, quantity, etc.. Of those parts and accessories, by its nature, its use is done with some regularity. 9.4.5
Facilities. Types of facilities and services important to plant scale schematic drawings which should be part of the annexes to the feasibility study
9.4.5.2 9.4.5.1 Electricity Water Gas
9.4.5.4 9.4.5.3 9.4.5.5 Vapor
9.4.5.6 Air Compressed air conditioning
9.4.5.8 9.4.5.7 Communications 9.4.5.9 Drain
wastewater treatment facilities
9.4.5.11 9.4.5.10 Other Ancillary
security 9.4.5.12 9.4.5.13
Medical Facilities for staff
9.4. 5.14
9.4.6 Other maintenance programs. Special requirements of the plant in relation to the investment and operation. Description and specification of whether services Maintenance will be provided by staff and the company's own workshops or specialized firms will be hired
10 Organization and human requirements The organization of an enterprise is to define and assign the functions it is necessary to carry out to achieve an effective way the objectives thereof. This organization includes the establishment of departments and posts, and the determination of the respective objectives, functions, including the specification of relationships that must exist between these departments and posts. All this is often expressed through the respective manuals and the chart shows structure of the main technical and administrative units.
This chapter of the project, must describe the internal organization of the company and the various organs of administration during the pre-operational and operational phases of the project and the number of people, expertise and distribution within the organization and changes expected during project operation.
10.1.1 10.1 Organization pre-operational phase for the implementation of the project executing company
10.1.1.1 works and installations of the project. 10.1.1.2
form of supervision during project implementation
10.1.1.3 Human Requirements flowchart
10.1.2 10.1.2.1 type, quantity and average bi-weekly pay labor, both direct and indirect
10.1.2.2 type, amount and average monthly wage of technical, managerial and sales. 10.1.2.3
technical assistance needs, to express the cost of the same
10.1.2.4 Total costs of human requirements
Calendar 10.1.3 recruitment and training of personnel for project implementation
10.2 10.2.1 Operation Phase Organization of the operational phase of the project
Rules 10.2.1.1 or basic criteria used to structure the business organization
10.2.1.2 10.2.2 Requirements
human flowchart for the operation
10.2.2.1 type, quantity and average bi-weekly pay labor, both directly and indirectly, with the corresponding shifts. 10.2.2.2
type, amount and average monthly wage of technical, managerial and sales. 10.2.2.3
If seasonal requirements, personnel to be used in different seasons
Calendar 10.2.3 recruitment and training of permanent staff of the project
11 Investment In this stage, proceeds to make an accurate estimate of the investment required for the implementation of project. The necessary resources can be classified into two groups: those who are fixed investment, including pre-operational expenses, and required for the operation of it, working capital.
fixed investment comprises all goods and services required, generally, during the installation stage of the plant, and used throughout its life. The main components of fixed investment are: land, buildings, machinery, equipment and pre-operational expenses also known as deferred expenditure.
permanent working capital are the resources needed, both to finance sales credit to the company have appropriate amounts of the different types of inventory and cash, to meet the operations of production, distribution and sale of products produced at a given level of operations
11.1 Fixed Investment 11.1.1 Land. The cost will be supported by an appraisal, which will form part of the annexes to the feasibility study. 11.1.2
additional civil works and buildings. Unit prices will be used for each of the parts of the work, according to the budget prepared by the firm or professional who prepared the study. This budget will also be part of the annexes mentioned above and broken as follows: Site Preparation
11.1.2.1 11.1.2.2 11.1.2.3 Other Buildings
special civil works and equipment Machinery
11.1.3. Report the cost of acquisition and installation of machinery and equipment used in the production process according to the following detail: 11.1.3.1
direct production machinery ancillary equipment and transport 11.1.3.2 11.1.3.3
machinery and assembly equipment (attach quotes) 11.1.4
Parts & Accessories Non-current use. Cost of acquisition of spare parts and accessories, and quotes. 11.1.5
facilities. Cost of facilities, according to the budget prepared by the firm or professional responsibility. This document will form part of the annexes of the feasibility study.
11.1.6 Furniture and office equipment. Acquisition cost of furniture and office equipment to use. 11.1.7 Investment
pre-operation. ÇInversiones made in pre-project operation, such as those listed below:
11.1.7.1 Research and pre-operational studies
11.1.7.2 11.1.7.3 Feasibility Study Business Organization
11.1.7.4 Patents, licenses and others: a) patents, b) licenses, c) technical assistance d) other restrictions on the power supply, contracts. 11.1.7.5
implementation costs
11.1.7.6 Expenses management and engineering, during installation of the plant
11.1.7.7 costs of staff training
11.1.7.8 Interest paid during installation of the plant
Permanent Working Capital 11.2. Capital work required for the operation of the plant breakdown, according to the items previously listed
11.3 Scale of Costs
11.3.1 11.3.2 Facilities and Building Machinery and equipment 11.4
Investment Schedule. According to the project plan must be submitted a schedule of how different investments will be made. Financing
12 Having determined
the amount of investment required to implement the project, it should analyze the potential funding sources for obtaining the necessary funds to do the same, and to identify the mechanisms by which these resources will be sent to the entities providing the goods and services required by the project, according to the work program and schedule of investments.
regard to the availability of resources should take into account the proportion of purchases to be paid in foreign currency. Finally, it is necessary to indicate which sources of funding will be used to obtain the resources needed to cover investment fixed and permanent working capital. The following table shall indicate the resources required, by:
12.1 Amounts of investment and funding sources
12.1.1 Breakdown of investment items and for each one of them, the amount of participation by funding sources . Investment items are listed in Table No. 4
12.1.2 For part of the funding that is made with our own resources:
12.1.2.1 12.1.2.2
cash contribution in-kind contribution
12.1.3 For part of the funding from a source of credit, separately, in each case: a person, organization or company that grants credit, address, type of credit guarantee amount, interest rate, grace period, repayment arrangements and indicate the domestic and foreign sources, whether institutional or 12.2
Guarantees obtained or pending in the banking or financial institutions for project financing
12.3 Schedule of investments and sources of resources. The formulation of a feasibility study should also include pictures of project financing, the timing of investments, considering the prospects sources of funding earmarked for the establishment and operation of the company. To draw up the timetable, part of the structure of project investments, dates planned for implementation as well as consideration of different sources of funding. This schedule is presented in Table No. 5
12.4 Programming debt service. According to the preconditions for each of the credits to be achieved for the project, you can set the quantities to be canceled in respect of debt service, to be scheduling identifying each of the appropriations
13 Projected Results In this step you must make an estimate of financial results to be obtained during the first years of
project implementation
To do this we need to make a sales forecast that the company intends to achieve, and also the total costs, in order to establish the utility, the corresponding equilibrium point and prepare pro forma financial statements. 13.1
Sales. Amounts to selling different products to develop during the first five years of operation of the project, and the criteria used to establish different levels of prices of these, such as factory prices, the distributor, retailer and consumer.
13.1.1 Sales of company products: estimates for the domestic market and external
13.1.1.1 Quantities sold in units
13.1.1.2
unit selling prices
13.1.1.3
Sales Revenue 13.1.2 Sales revenue of products and / or waste
13.1.3 Total revenue for the first five years.
13.2 Total Cost. Total five-year estimate of total annual costs according to the categories listed below, divided into fixed and variable, according to annual production levels that will work and indicate the total unit cost in line with those levels, as expressed in table 6
13.2.1 Total Cost Estimate 13.2.2
Amount Total cost (five years) 13.2.3 Unit costs
Utilities 13.3 13.4 Balance Point 13.5
pro forma Financial Statements Balance Sheet
13.5.1 for the first three years, according to Table 13.5.2 State
income for first five years, according to Table No.
13.5.3 Cash flow for the first three years, according to Table No
13.6 Affordability year, according to Table No.
13.7 Period of payback
14 Importance of project for the national economy 14.1 Contribution to the development of the area where run the project. 14.2
level of employment generated, classified by occupation
14.3 Amount of investment per job created
14.4 Amount of annual wages and salaries 14.5
type and value of domestic raw materials to use
14.6 Quantifying the project's contribution to gross value added at market prices can be obtained by the two methods listed in the table referred. 14.7
Volume and value of exports to be generated annually
14.8 Volume and value of annual import substitution
14.9 Effect of the project in other aspects
14.9.1
Low employment generation and displacement of hand labor dee
14.9.2 high percentage of imported raw materials used in the total
14.9.3 High level of investment per job created negative effects
14.9.4 in the ecology of the area
14.9.5 Other
15
profitability analysis
The efforts made in a company from the standpoint of administrative, financial and technical ultimate aim of generating a surplus from which sets the level of profitability. The importance of establishing the profitability of a business is that you can appreciate the degree of efficiency in the use financial resources and can be set either from the standpoint of accounting, and financial. Profitability accounting
15.1 Return on investment 15.1.1
15.1.2 Return on net sales (gross margin)
15.1.3 Return on equity 15.2
15.2.1 Financial Performance Net Present Value (VAN)
15.2.2 Internal Rate of Return (IRR)
15.2.3 Benefit Cost Ratio (B / C)
16 Implementation Plan
The implementation phase of the project covers the period from the time that the decision to invest up to the initiation of the operation normal plant.
Preparing a plan is to identify the different stages that comprise the project and establish the factors and resources required to carry out, taking into account the estimated optimal time to perform the activities under each steps outlined.
For the drafting of the plan should take into consideration the following activities indicating its duration and whether there are activities already undertaken or carried out. 16.1
16.1.1 Technical studies and engineering consulting
Recruitment
16.2, 16.3
pre-operational phase Negotiations, paperwork, contracts, quotations, bids, selection and purchase of machinery and equipment 16.4
Running civil engineering works
Recruitment
16.5: 16.6
operational phase front and assembling machinery and equipment 16.7
Making 16.8
Test Preparation
critical path sequence of activities
16.8.1 16.8.2 Estimation
critical period of execution
investment
Calendar 16.8.3
Environmental Impact
17 The importance of environmental impact assessment lies that allows to see the influence that each project will have on the environment and how they affect natural resources, so it is advisable to consult with the Ministry of Environment and Natural Resources about this type of study, each country has its own methodology.
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