Chapter 3 Questionnaire: method

technical book evaluation of projects.

Baca Urbina.
published on April 5, 2012 at 17:21 by LALO MIR

Questionnaire: technical study.

What relationship exists between the technical study and the other project studies?

The technical study is the result of the previous studies, as once shown the
market viability, the location, size, production process, and the must be determined.
laws that will govern the plant according to the information gathered in the evaluations.
previous ones and thus avoid a capital expenditure greater than forecasted.

2. How can the productive aspect solution affect the evaluation?

economic feasibility of the project?

If a production process is not chosen well, it can lead to producing more than the demand.
that the product is available in the region where the plant is located and generates idle product and material
before it stays in storage, which generates capital losses or there are also processes
with great technology that costs a lot of money and therefore the process must be chosen wisely, moreover
certain processes are better produced on a large scale, as producing them on a small scale increases costs of
supplies, all of this is part of the economic evaluation and makes up a good part of the
investment.

3. Identify the productive processes that occur in the project of a hospital.

university and of a car service agency.

The hospital and the university are processes by product as they, metaphorically, become
they heal the sick. And at the university it is noted that although the task of teaching is
basically the same, each student is a particular world that requires personal attention from
teacher.

And in the automobile service agency as well since it has certain dimensions in it.
They are carrying out several repair tasks, different yet at the same time.

4. Identify the most important variables to consider when selecting the

production process.

Inputs, supplies, transforming process, productive equipment, human organization,

products, by-products and waste.

5. Define an analysis methodology, identifying the main variables, to

carry out the technical study of the following projects: a) creation of a primary school;
b) reapertura de un aeropuerto; c) creación de un hospital general; d) apertura de una zona
tourist.

a) Land evaluation for land use, suppliers for material of

construction, regulations that must be complied with, size of the school,
 market availability for private education, availability of capital
startup, school location, distribution of classrooms, offices, and laboratories
organization of personnel by hierarchy.

b) Size and distribution of the new area, tax incentives for remodeling,
availability of a broader market, acquisition of new materials and equipment, and
internal distribution of the remodeled area.

c) Hospital size, high patient demand, hospital location,

land selection, fiscal incentives and legal framework, equipment acquisition and
machinery, distribution of areas, organization of hospital staff and calculation
of the costs.

d) Market and capital availability, market size, availability of

supplies to the area, location of the area, tax incentives for opening of
businesses and jobs and legal framework on commercial laws.

6. What variables mainly influence the determination of the purchasing program?

of materials?

The suppliers of raw materials and inputs. And their capacity to

supply the latest.

Prices, insurance, guarantees.

Maintenance service in the country.

Obtain the materials in the country in case importing them incurs costs.

7. What are the main determining variables of plant size?

The demand, supplies and inputs, processing equipment, financing and

staff organization.

8. Explain the relationship that exists between size and geographical distribution of the
demand for a product.

If the demand is greater than the size of the proposed plant, it must be such that only
a low percentage of demand is covered, no more than 10%, as long as there is a market.
free. If an oligopoly regime exists, it is advisable not to enter the market as long as there are
agreements that guarantee the distribution of the market and the supply of raw materials.

9. How does the technological process condition or limit the size of a project?

Within certain operational limits, greater production scale in certain processes leads to
promote a lower investment cost per unit of installed capacity and greater efficiency, which
previous will reduce costs, increase profits and raise profitability. That is why certain
processes or production techniques require a minimum scale to be applicable and therefore
it will generate a larger space on the floor.

10. How is it possible to determine the optimal size conceptually or mathematically?

project?

Through some methods such as:

Lange Method.

Scaling Method.

Qualitative Method by points.

Vogel's quantitative method.

Route Diagram.

SLP diagram.

All of them will contribute characteristics that will generate an optimal size with the
indicated properties.

[Link] las ventajas y desventajas de los métodos de localización, por puntos y de

Bird.

Point localization method.

The advantage of this method is that it is very simple and quick, but its main disadvantage is that
both the assigned weight and the rating given to each relevant factor will depend
exclusively based on the researcher's preferences and therefore cannot be reproducible.

Vogel's Method.

Among its advantages is that it is a precise and completely impartial method.

The disadvantages:

Supply and demand must be equal.

No more considerations for localization than the costs of

transport

The quantities of supply and demand do not vary over time.

The unit transportation costs do not vary with the amount transported.
 The supply and demand are in homogeneous units.

Transportation costs are a linear function of the number of units.

embarked.

12. Describe the methodological steps necessary to apply Vogel's methods and
by points.

Vogel's method.

Calculate the difference between the two smallest costs in each row and in
each column and write the resulting numbers on the right side and at the base of
each row and column.

Select the row or column that has the smallest cost difference and
assign as many units as possible to the lowest cost box. In case
in case of a tie, select the row or column that has the lowest cell in
cost.

Do not consider in later situations the row or column that has been
satisfied.

Use the reduced matrix by removing rows or columns. Repeat the

steps from one to three, until the entire offer has been assigned to everyone
demand and it has been fully satisfied.

Method of points.

Develop a list of relevant factors.

Assign a weight to each factor to indicate its relative importance (the buts
they must add 1.00), and the assigned weight will depend exclusively on the criterion of
researcher.

Assign a common scale for each factor (for example, from 0 to 10) and choose
any minimum.

Rate each potential site according to the designated scale and multiply
the grading by weight.

Sum the scores of each site and choose the one with the highest score.
13. What are the assumptions on which Vogel's method is based?

The assumptions, also considered disadvantages of the method are:

Supply and demand must be equal.

It does not consider other costs for the location, which are the costs of
transport

The quantities of supply and demand do not vary over time.

The unit transportation costs do not vary with the quantity transported.

Supply and demand are in homogeneous units.

Transportation costs are a linear function of the number of units.

embarked.

14. Describe what block and flow diagrams and flowcharts consist of.
analytical.

Block diagram: consists of each unit operation carried out on the raw material.
enclose in a rectangle; each rectangle or block is placed continuously and connected with the
anterior and the posterior through arrows that indicate both the sequence of the operations with
the direction of flow.

Flowchart: it contains so many details and information where a symbolism is used.

internationally accepted to represent the operations carried out.

Analytical curriculum: it is a more advanced technique than the previous ones, as it presents a
more detailed information of the process, which includes activity, time spent, distance
route taken, type of action performed, and a space for observations.

15. Mention what the principles and objectives of plant layout are.

Total integration of all factors affecting distribution.

Minimum travel distance, to minimize handling as much as possible.

materials.

Utilization of cubic space.

Safety and well-being for the worker.

Flexibility.
16. Identify how many types of processes exist and what their characteristics are.

1.-Process by project or component: It involves the manufacture of an exclusive product, which

it involves designing a unique process for each project. These are long and complex processes. Here
labor, materials, and equipment arrive at the work site.

2.-Intermittent or by-products process: we can find two types.

2.1. Production by workshops: Work is done in small batches of a large quantity of

products that adapt to the characteristics that the customers indicate.

2.2. Batch production: Variations on batches are also worked on, but there is a greater
automation. It is a system known as production in work centers. Each
batch arrives at a workplace for an operation and when it is completed, it is moved to
next center.

3.-Mass production:

3.1. Mass production: machines and work centers are located some to
continuation of others, according to the sequence of tasks to be carried out. Examples of this type
manufacturing is: the production of cars, calculators, pens...

3.2. Continuous production: the product goes through a series of operations

different continuously, with hardly any stops in the production process.
Requires high automation and is operational 24 hours a day. Examples
these are: the steel and paper industry.

17. Explain what flexibility in a production process consists of.

A distribution must be obtained that can be easily readjusted to the changes required by the
half, in order to be able to change the type of process in the most economical way if necessary.

18. Mention the factors to consider for the acquisition of equipment.

and machinery.

Supplier.

Price.

Dimensions of the machinery.

Capacity of the machinery.

Mobility flexibility.

Labor required for operation.

 Maintenance cost.

Electricity or other energy consumption.

Necessary infrastructure.

Auxiliary equipment.

Cost of freight and insurance.

Existence of spare parts in the country.

Apply the SLP method to carry out the distribution of the facilities of a
high school of chemistry

20. In what cases is the use of a traveling chart recommended for

make a layout of the plant?

In plants that are considered standard and in which the sectors are grouped in such a way
process.

21. Analyze the fact that when the plant layout is carried out, it is always obtained
an optimal and not ideal distribution.

All methods have approximations to the plant distributions and will give you a distribution.
optimal for the moment they perceive it, but there is undoubtedly no ideal distribution as
many more factors intervene which could not be clearly predicted and which would lead to
a mismatch, however, these distributions leave the door open as much as possible to
future modifications.
22. What elements should be considered in the definition of a structure?
organization?

The initial calculations on investment and operating costs.

The available administrative spaces.

The hierarchy.

The flexibility of the organization.

23. How does organizational analysis affect the initial investment of a project?

The decision to propose in their study the hiring of certain external services
initial and permanent variations will greatly affect the initial calculations on investment and costs
Large companies find it more convenient to absorb these external services.
instead of hiring them this way, greater expense is avoided as they are part of the same payroll.

24. Mention why it is important to know the current legislation in the country and the
location where the project is developed.

Both the constitution and a large part of the local, regional codes and regulations,
national. They have some impact on a project, and therefore, they must be taken into account
account, since all business and profit-making activity is incorporated into a certain
legal framework.

QUESTIONNAIRE 3 - SIZE, LOCATION, AND TECHNICAL STUDY

What relationship exists between engineering studies and the other studies of the project?
2.
The engineering study of the project must determine the production function.
optimal for the efficient and effective use of available resources for production
of the desired good or service for this: Size: It will condition the size of the project
proposed.

Macro and Micro localization: The settlement area of the project will be conditioned, its
prevailing characteristics in the area, the design, and the area of material supply
first, materials, etc.

The Market Study: Establishes the sales plan, this must be the production plan.
of the project.
Therefore, in this way, other studies affect the decisions of the study of
engineering.

3. In a production process by order, is manufacturing for stock important?

Due to the difficulties that arise in production scheduling, what do you comment?

Production follows different sequences, which makes its flexibilization necessary, through
of labor and sufficiently ductile equipment to adapt to the characteristics
of the order. This process will affect the economic luxuries due to greater specialization of
human resource and for the largest inventories that will be necessary to maintain.

4. What investments in physical work, equipment, and personnel balance should be made?
What should be considered for the creation of a new Hospital Center?

Physical Work:

Knowing the amount of equipment and its physical arrangement, one can determine the
space requirements for proper installation, transit routes, waiting rooms,
bathrooms. Warehouses, laundry, staff lounges, etc.

Equipment:

The identification of all relevant suppliers, to compare the quotes and

the qualities of the sales and after-sales service....
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Questionnaire 3

Questionnaire 3

What relationship exists between the technical study and the other studies of the project.

Each of the studies conducted on the project may indirectly depend on

the technological study since it is responsible for verifying the feasibility of the
production in addition to analyzing and determining the size, location, equipment and
optimal facilities for production.

2. In what aspects can the selection of the production process affect the evaluation
economic of the project.

It can be affected in such a way that the amount you have is not well considered.
It intends to produce, the productive process requires, in addition to processes.
automated or semi-automated, which largely rely on a
a major investment will also be requested to optimize spaces, likewise
it can also affect the teams involved in the process and they are also
expensive and little used, the labor will also intervene in such a way that if it
calculating wrong in greater quantity there will be quite a few people without activities and you
they would steal extra wages.

3. Identify the production processes that take place in the hospital project,
a university and an automotive services agency.
Hospital
INITIAL STATE PROCESS FINAL PRODUCT
Transformer

SUPPLIES: The PROCESS: Treatment to PRODUCTS

hospital supplies follow that has the Treated patient
they would be the patients patient
Successful surgeries

SUPPLIES: The TEAM SUBPRODUCTS

supplies will be PRODUCTIVE: Instances, Aesthetic Surgeries
given by the doctors and consulting rooms and operating rooms
hospital employees

WASTE OR
ORGANIZATION: RESIDUES:
This is given by the doctor Patient deaths
and nurses

University
INITIAL STATE PROCESS FINAL PRODUCT
transformer

SUPPLIES: The PROCESS: Development PRODUCTOS

supplies of the intellectual of the trained graduates
university is given for a formal development
for the students who intellectual inside of the
they enter labor development
 SUPPLIES: The TEAM SUBPRODUCTS:
supplies will be PRODUCTIVE: Capacity development
given by teachers and Facilities, offices and and attitudes
administrators classes

WASTE OR
ORGANIZATION: RESIDUES:
This is given by the Nini individuals
teaching classes

Automotive
INITIAL STATE PROCESS FINAL PRODUCT
transformer

SUPPLIES: The PROCESS: Repair PRODUCTS

service inputs Cars that are delivered
automotive will be the with the specifications
cars established

SUPPLIES: The TEAM SUBPRODUCTS:

supplies will be PRODUCTIVE Washing and finishes
given by the mechanics Machinery and workers
trained individuals who work
in the establishment

WASTES OR
ORGANIZATION: WASTES:
Administrators and Frequent failures
managers after the repair

4. Identify the most important variables to consider when selecting the

productive process.

Flexibility of processes and teams

Acquisition of equipment and machinery

5. define an analysis methodology, identifying the main variables for

carry out the technical study of the following projects;

a) the creation of a private primary school,

Optimal location would be for the primary school to be located not far from the
population and not very close to any other school with the same focus, the size of
the facilities must be adequate and proportional to the number of students that are
it intends to have or limit the quota according to the space of the facilities, it must
have the necessary equipment, such as trained personnel in addition to having
Classrooms equipped for the optimal development of students, such as seats that are
suitable to the age and needs required by the student, all of this combined with the
proper organization and that the institution meets all the requirements that
a student has a need.

b) reopening of an airport,
It should be taken into account what type of restoration is needed and if it would not affect.
to the environment that surrounds it, as well as taking into account that, so to speak, if it is required
any expansion of an area of the facilities must be taken into account if it
has the space for this expansion, in the same way it must be taken into account
count if the staff that is intended to have available is sufficient and
qualified for each of the positions they will hold at subes in this
this case will aim for better organization to meet all the
requirements to be met by the user.

c) creation of a general hospital

The location should be taken into account where it is most necessary, maybe in
some rural community or community that does not have such services, the size
the facilities must be proportional to the number of inhabitants to which it applies
directed or to the one that is intended to benefit, in addition to having to have the
necessary equipment such as stretchers, devices for studies and others, and have
the trained staff.

d) opening of a tourist area.

It should be a place that interests tourists to visit and has attractions.
so that they can encourage people to visit the area, the size of the area between
bigger would be better since it could have more visibility and be more attractive for
the visitors which could leave a favorable economic spillover for the place
where it intends to concentrate that tourist area, having personnel at the same time who
Get to know the area so you can provide information to visitors, for which you must
to have an organization of everything that is needed as well as the requirements that
they would be essential for the visitors.

6. What variables primarily influence the determination of the purchasing program

of materials.

Both the requirements and the size of the plant influence the programming of
the purchase of materials since it will depend on the capacity of the plant
need to carry out purchases of these materials, in the same way
both the suppliers and the costs they set also have an influence on the
product, the number of people in charge to be able to work on the
plant, what the maintenance of the new products or equipment will cost likewise
what the installation will cost and if an added value could be provided in case of
if a part were to fail and had to be replaced, also taking into account that if
Is there a situation of this type, is there a spare part or how much will it cost to obtain it.

7. What are the main determining variables of a plant's size.

The demand, the availability of raw materials, the technology, the equipment and the
financing.

8. Explain the relationship that exists between the size and the geographical distribution of the
demand for a product

The size of the plant is linked to the geographical distribution as it depends on it.
size of the plant the capacity that will be available to satisfy an area of
established distribution.

9. In what way does the technological process condition or limit the size of a
product.

It is limited since goods and services are obtained from the technological process.
necessary through supplies.

10. How is it possible to determine conceptually and mathematically the optimal size of
a project.

The optimal conceptual size of the project is determined by the supplies and inputs.
it also consists of technology and equipment in addition to the organization of the
appropriate personnel.

Mathematically: it depends on the product demand as it must be greater than the

10% and it also depends on the funding given to the project

11. Mention the advantages and disadvantages of point location methods and
the Bird.
Advantages

Simple

Fast

Precise and impartial

Disadvantages
The weight of the assignment and the rating given to the factor depend on the
researcher preferences.
Transportation costs

Supply and demand

The effects of freeze-drying are not considered.

Supply and demand do not vary

12. Describe the methodological steps necessary to apply Vogel's methods.

and by points.

Steps to develop qualitative factors of the point method.

· Develop a list of relevant factors.

· Assign a weight to each value to identify its relative importance, and the weight
Assigned will depend exclusively on the researcher's judgment.

· Assign a common scale to each factor and choose any minimum.

· Classify each potential site according to the designated scale and multiply
the rating by weight.

· Sum the score of each site and choose the one with the highest score.

Vogel model to solve your matrix.

· Calculate the difference between the 2 smallest costs in each row and in each
column and write the resulting numbers to the right and at the bottom of each row and
column.

· Select the row or column that has the greatest cost difference and assign it.
as many units as possible to the lowest cell in case of a tie
select the box that has the lowest cost.

· Do not consider in later situations the row or column that has been
satisfied.

· Use the already reduced matrix by removing rows and columns, repeat the steps.
from 1 to 3 until the offer has been assigned to all the requests and this has
has been fully satisfied.

13. What are the assumptions on which the Vogel method is based?
· Both supply and demand are expressed in homogeneous units.
· The unit transportation costs do not vary according to the quantity.
transported.
· Supply and demand must be equal.
· The amount of supply and demand does not vary over time.
· No other effects for freeze-drying are considered besides transportation costs.

14. Describe what block diagrams, flow diagrams, and process charts consist of.
analytical.

Block diagram: it is the simplest method to represent a process,

consists of each unit operation applied to the raw material being enclosed
In a rectangle, each rectangle or block is connected to the previous and the next one.
they are connected by an arrow that indicates both the sequence of the operations
as the direction of the flow is usually started at the top of the diagram
upper right corner of the sheet.

Flowchart: it is very similar to the block diagram with the difference that it does not
contains information or detail as well as the process flow diagram, in this it
use a symbolism to represent the operations performed.

Analytical grammar course: advanced technique compared to the flowchart and

blocks since it has more detailed information as it includes the activity, the
time spent the distance traveled the time of action performed and
observations.

15. Mention what the principles and objectives of plant layout are.

· Minimum distance traveled

· Use of spaces
· Security and well-being
· Flexibility
16. Identify how many types of processes exist and what their characteristics are.
·
· Type of product
· Type of process
· Production volume

17. Explain what the flexibility of a production process consists of.

Flexibility should be achieved by obtaining a distribution easily adjustable to changes.

that requires the means, in order to change the process in the most economical way, yes
necessary.

18. Mention the factors that can be taken into account for the acquisition of
equipment and machinery.

· Supplier
· Price
· Plant dimension
· Capacity
· Flexibility
· Labor
· Maintenance cost
· Energy consumption
· Infrastructure
· Auxiliary equipment
· Freight and installation cost

20. In which cases is it recommended to use the flowchart for making a distribution?
of plant.
 It would normally be used to show the number of movements made between
the departments in order to identify the most active departments.

21. Analyze the fact that when a layout is carried out, it is always
obtains an optimal and non-ideal distribution.

Because the goals are to use all the space optimally or

well all resources obtaining a minimal travel distance, which does not
it aligns with the well-being of the workers therefore it will be optimal but not ideal
since not all objectives can be achieved without affecting others.

22. What elements should be considered in defining a structure of

organization.

The size of the company

that the organization needs to be flexible

23. How does organizational analysis affect the initial investment of the project.

Organizational analysis is not sufficiently analytical, in most cases.

This prevents a correct quantification of the initial investment.

24. Mention why it is important to know the current legislation of the country and the
locality where the project is developed.

Why the project must incorporate and comply with legal provisions
in force which may impose restrictions on the project.

Questionnaire Unit 3
1. What relationship exists between technical study and the
 remaining studies of the project?

The technical study as well as the remaining studies

they are relevant within the evaluation of a
project since it determines the costs in the
that will be incurred in implementing it, so that said
study is the foundation for financial calculation and the
economic evaluation of it. A project of
investment must show, in its technical study, the
different alternatives for the preparation or production
of the good or service, in such a way that they are identified
processes and methods necessary for its realization, of
there arises the need for machinery and equipment
suitable for production, as well as labor
qualified to achieve the operational objectives of
product, the organization of spaces for its
implementation, Each of these is part
important in the viability of said plan, and if any of
they draw unfavorable conclusions, they must
take corrective measures to continue with the
evaluation process

2. In what aspects is the selection of the process

productivity can affect the economic evaluation
of the project?

Every production process involves a technology that

it is the detailed description step by step of
individual operations that, if carried out,
they allow the preparation of an article with
precise specifications can be determined
elements like technology or machinery that must
to be used, the number of workers needed to
meet the demand, the work shifts, the
plant distribution, among others since if there is
a change in one of the production processes of a
The project may affect the mentioned variables.

3. Identify the production processes that occur.

in the project of a hospital, of a university and
from an automotive services agency.

In a hospital, our main function is to take care

for the patient's health, for this, a series is in place
of processes that are part of the main objective.
Routine exams, medical check-ups, surgeries,
emergency rooms etc. While in a company
automotive service services include assistance services
assistance in case of breakdowns, car stuck in the middle
via. And in universities we must take into account
to provide the student with a good education for
their subsequent professional training. A series are granted.
services such as classes, tutoring, exams of
student evaluation, presentations, visits to
companies, research groups, schedules of
student services, as well as libraries,
 virtual classroom among others.

4. Identify the most important variables that are

they must consider when selecting the process
productive.

To select an appropriate production process this

it must be composed of a series of operations
Individuals must also be taken into account.
costs, which this implies the number of machines to
use, the number of workers, the shifts.
however, this will depend on the type of technology that
it is used in each operation which can be very
automated or somewhat automated, the physical distribution
the machinery inside the plant play a role
fundamental.

5. Define an analysis methodology, identifying

the main variables for conducting the study
technician of the following projects:

A. Creation of a private primary school: how much

it is good to compare several plots of land
B. Reopening an airport: analyze how many
schools and hospitals are nearby so that they don't
 it harms the functioning of these, how costly it is
is the labor close to that sector for the
project execution
C. Opening of a tourist area: how good is it
zone to compare several lands

It is necessary to analyze the capacity they will have for this.

to know how much is available in the market so that
know how many shifts should be available
to know which days are worked in the year in a very
exact, although it would be almost negligible this would also help
to know how much should be invested in the project if
he/she is unaware of the capital amount

6. What variables mainly influence the

determination of the purchasing program of
materials?

The variables that influence the purchase of materials

it is to request only the necessary amounts in order to deal
to avoid the storage of the product as much as possible
inventory costs among the operations that
make up the process, also take into account the
capabilities of the teams at the moment of
buy them and know how much it produces in a time
determined in order to avoid bottlenecks or equipment
costly items that are idle for a long time.
7. What are the main variables
determinants of plant size?

The main variables could be the demand which is

the most important factor, the sufficient supply in
quantity and quality of raw materials, the relationships
between the size and the technology will in turn influence the
relationships between size, investments, and costs of
production, financing, and personal organization
highly skilled.

8. Explain the relationship that exists between size and

the geographical distribution of demand for a
product.

It can be said that if the size of the demand for a

product increases, it must be understood that
geographically the product reaches more places of the
country or of the world. Compare who will have more
demand between two products in the same market,
but one of them is important in three cities
significant and the other in only one of them.
9. How does the technological process
does it condition or limit the size of a project?

Technology influences the size of the project,

investments and production costs. With carrying to
reduce the production cost, increase the
utilities and increase the project's profitability.
It can generally be said that technology and the
teams tend to limit the size of the project to
minimum production required to be applicable

10. How is it possible to determine conceptually and

mathematically the optimal size of a project.

It is possible through the Lange method as it defines

a particular model to establish optimal capacity
new plant production based on hypotheses
It is true that there is a functional relationship between the amount
from the investment and the productive capacity of the project
which allows considering the initial investment as
direct measurement of production capacity. If it
achieve a function that relates the investment
initial and the production costs will show that a
high operating cost is associated with an investment
down or vice versa.
It could also be determined by the method of
escalation that more specifically determines
the optimal production capacity that is considered
the capacity of the teams available in the market and
with this analyze the advantages and disadvantages of working
certain number of work shifts and overtime hours. It
they investigate the available team capabilities in the
market and the maximum production is calculated when working
three shifts which provides a range of
production capabilities.

11. Mention the advantages and disadvantages of the

localization methods, point method and Vogel's method

Qualitative method by points

Advantages
Simple and fast
Assign a common scale to each factor
Disadvantage
Both the weight assigned and the rating given to each factor
relevant, depend exclusively on the preferences of the researcher and, therefore,
they may not be reproducible.

It is very intangible
Vogel's method
Advantages
It is very precise and reasonable, and the one is chosen.
site that produces the lowest transportation costs,
both the raw material and the finished product.
Disadvantage
It is not quantifiable; consider more effects for the
location that transportation costs.
The quantities of supply and demand are
independent of time, supply and demand
they must be equal.
Unit costs do not vary according to the
transported quantity.

12. Describe the necessary methodological steps

to apply the Vogel and two-point methods.

Qualitative methods by points:

Develop a list of relevant factors.
2. Assign a weight to each factor to indicate its
relative importance (the weights must add up to 1.00), and the
The assigned weight will depend exclusively on the criterion.
of the researcher.
3. Assign a common scale to each factor (for
example, from 0 to 10) and choose any minimum.
4. Grade each potential site according to the
designated scale and multiply the rating by the
weight.
5. Sum the score of each site and choose the one from
maximum score.
Vogel's method
1. Calculate the difference between the two costs plus
small ones in each row and in each column and write the
resulting numbers on the right side and in each base of
each row and column
2. Select the row or column that has
cost difference and assign as many units as possible
possible to the lowest cost box.
3. Do not consider the line or in subsequent situations
column that have already been satisfied.
4. Use a matrix that has already been reduced by eliminating rows and
columns

13. What are the assumptions on which it is based

Vogel's method.

Transportation costs are a linear function of the

number of units shipped
Supply and demand are expressed in units
homogeneous
Unit transport costs do not vary from
agreement on the transported quantities
Supply and demand must be equal
The amount of supply and demand does not vary with the
time
No further effects for localization are considered than those
transportation costs

14. Describe what the diagrams consist of

blocks, flow and analytical flowchart

Block diagram: It is the simplest method to

to represent a process consists of each operation
unitary exercised on the raw material is enclosed in
a rectangle; each rectangle is connected to the previous one and
the back through arrows that indicate both the
sequence of operations like the direction of
flow.
Flowchart: It has the same system as the
block diagram the difference lies in the
symbolism that this uses.
Analytical course diagram: More than a diagram, it is a
technique that consists of analyzing the process,
with the intention of reducing time, distance. It is
used in plant redistribution.

15. Mention what the principles and objectives are

of the plant layout.

Total integration: it involves integrating as much as possible

all the factors that affect distribution, in order to
gain an overview of the entire set and its importance
relative to each factor.
Minimum travel distance: Having a vision
general of the whole set, it should be aimed to reduce in
management of materials, tracing the best flow.
Safety and wellbeing for the worker: this must
being one of the main objectives in every distribution
Utilization of cubic space: this action is very useful
when there is limited space and its utilization
must be maximum.
Flexibility: There should be an easily accessible distribution.
readjustable to the changes required by the environment, To
to be able to change the type of process in the easiest way
economic.

16. Identify how many types of processes exist and

What are its characteristics?

Distribution by product: Groups workers and to the

team according to the sequence of operations
made about the product.
Distribution by process: Groups people and the
teams that perform similar functions and make
routine jobs in low production volumes. The
work is intermittent and guided by work orders
individuals.
Distribution by fixed component: Labor,
materials and equipment go to the same job site.
They have the advantage of control and planning of
projects can be carried out using techniques such as the
CPM and PERT.

17. Explain what the flexibility of a

productive process.

It is when a company implements distributions of

plant and equipment in the simplest way possible
allow obtaining low monetary costs and be easy
adaptation when modifying the process of
production. This type of advantage allows that area
the company's specific area is more competitive.

18. Mention the factors that should be taken into account

account for the acquisition of equipment and machinery.

Provider
Price
Dimensions
Capacity
Flexibility
Necessary labor
Maintenance cost
Energy consumption
Necessary infrastructure
Auxiliary equipment
Cost of freight and insurance
Installation and commissioning cost
Existence of spare parts in the country
19. Apply the SLP method to carry out the
distribution of the facilities of a school
superior of chemistry

20. In what cases is the use of recommended?

route diagram for making a distribution
of plant?

It is recommended to use flow diagrams.

when will distribution studies be conducted and
redistribution of the plant since this allows to see the route
from the raw material, from the moment it leaves the warehouse until
which becomes the final product, the difference is that
this shows you in three dimensions and with threads
in colors the route of the materials.

21. Analyze the fact that when a

a plant layout is always obtained
optimal and non-ideal distribution.
about this fact we can say that in many
organizations have their distributed optimally
physical and human team for each process of
production but many times it falls on many
inadequate transportation that generates waits or
delays that in turn raise production costs
and that is reflected in the unit costs of each
produced unit.

22. What elements should be considered in the

definition of an organizational structure?

We must be clear: Company's organization chart and the

functions delegated to each person within the
company.
There are several ways to do it, among them is the circular one.
the stairs, horizontal, vertical, linear-functional or
simply functional. Additionally, this allows you to see this.
hierarchically organized according to the level of
cargo.

23. How does organizational analysis affect the

initial investment of the project?

When we push an exhaustive analysis to an extreme

this project provides us with more reliability for
do it but this does not mean that our
investment is fully safeguarded neither
much less that it is without any risk, to
although we may feel somewhat safer
from our project to carry out we need to see the
possibility that can affect our investment due to
an unforeseen event that cannot be controlled.

24. Mention why it is important to know the

current legislation of the country and the locality where it
develop the project.

The constitution and a large part of the regulations

local, regional and national impact in some way
way about a project, for which it is necessary to have
take into account that all business and profitable activity
is incorporated into a specific legal framework.
There are legal aspects that are important.
which ones should be known and handled well
they in order for the company to apply optimally
its resources and achieve the goals.
it does not help to increase the profitability of capital and a
minimum unit cost, to know what it is
attending that is to say when some mishap occurs
knowing how to face it and understand in what way or what is the
most suitable method to carry it out without the need for
take it to adults.
taking into account is that in the localization of the project
one must take into account aspects such as proximity to
the customers and with the same suppliers in order to
thus minimize delivery and reception times
raw material.
What relationship exists between the technical study and the other studies of the project?
The technical study as well as the remaining studies are relevant within the evaluation of a
project since it determines the costs that will be incurred when implementing it, therefore
that said study is the basis for the financial calculation and economic evaluation of it.

2. In what aspects can the selection of the production process affect the evaluation?
economic del project?
Every production process involves a technology that serves as the detailed description step by step.
individual operations that, if carried out, allow for the production of an article
with precise specifications.

3. Identify the production processes that take place in a hospital project, of a

university y of a agency from services automotive.
In a hospital, our main function is to look after the patient's health, for this we
they have a series of processes that are part of the main objective. Routine exams,
medical check-ups, surgeries, emergency rooms, etc.
In an automotive service company, there are assistance services in case of
faults, car stuck in the middle of the road.
In universities, we must take into account providing a good education to the student.
for their further professional training. A series of services are provided such as classes, tutoring,
student assessment exams, presentations, company visits, groups of
research, student service hours, as well as libraries, virtual classroom, etc.

4. Identify the most important variables that should be considered when selecting the
process productive.
It must consist of a series of individual operations. They must also be taken into account.
count the costs, which involves the number of machines to be used, the number of workers,
the shifts, type of technology used in each operation.

5. Define an analysis methodology, identifying the main variables, to carry out

the technical study of the following projects:

Creation of a private primary school: area quality, compare land.

Reopening of an airport: how many schools and hospitals are nearby as it can
to harm them, labor cost in the sector.
Opening of a tourist area: quality of the area comparing locations

Analyze the capacity they will have to know what is available in the market and to know
how many shifts need to be available, knowing which days to work during the year, etc.

6. What variables primarily influence the determination of the purchasing program?

materials?
Only request the necessary amounts to try to avoid storage as much as possible.
product and inventory costs among the operations that make up the process
Take into account the capabilities of the teams and know how much they produce and avoid bottlenecks.
bottle or equipment that are not used for long periods.

7. What are the main determining variables of the size of a plant?

Demand, the sufficient supply in quantity and quality of raw materials, the relationships between the
size and technology, investments and production costs, financing and organization
personal.

8. Explain the relationship that exists between size and geographical distribution of the
demand of a product.
It can be said that if the demand for a product increases, it should be understood that
Geographically, the product reaches more places in the country or the world.

9. How does the technological process condition or limit the size of a project?
Technology influences the size of the project, investments, and production costs. With carrying
to reduce the cost of production, increase profits and enhance the profitability of the project.

10. How is it possible to determine conceptually and mathematically the optimal size of a
project.
It is possible through the Lange method as it defines a particular model in order to establish the
optimal production capacity of the new plant based on the real hypothesis that there is a
functional relationship between the amount of investment and the productive capacity of the project which
It allows considering the initial investment as a direct measure of production capacity.

1. Precisión en la identificación de ubicaciones. 2. Eficiencia en la planificación logística. 3. Mejora en la toma de decisiones. 4. Acceso a información geográfica actualizada. 5. Facilita la personalización de servicios.

bird

- Qualitative method by points

Advantages: Simple and quick, assigns a common scale to each factor.
Disadvantage: It is that both the assigned weight and the rating given to each factor
relevant, depend exclusively on the preferences of the researcher and, therefore, may not
Being reproducible is very intangible
Vogel's Method
Advantages: It is very precise and reasonable, and the site that produces the least is chosen.
transport costs, both raw materials and finished products.
Disadvantage: It is not quantifiable; it considers more effects for the location than the costs of
transport, the quantities of supply and demand are independent of time, the supply and the
demand must be equal, unit costs do not vary according to quantity
transported.

12. Describe the methodological steps necessary to apply the Vogel and the method.
points.
Qualitative methods by points:
1. Develop a list of relevant factors.
2. Assign a weight to each factor to indicate its relative importance (the weights must sum up)
1.00), and the assigned weight will depend exclusively on the researcher's judgment.
3. Assign a common scale to each factor (for example, from 0 to 10) and choose any minimum.
4. Rate each potential site according to the designated scale and multiply the rating.
for the weight.
5. Sum the scores of each site and choose the one with the highest score.
Vogel's method
1. Calculate the difference between the two smallest costs in each row and in each column and
write the resulting numbers on the right side and in each base of each row and column
Select the row or column that has a cost difference and assign as many units.
as possible to the lowest cost box.
3. Do not consider in later situations the row or column that has already been satisfied.
4. Use a reduced matrix by removing rows and columns

13. What are the assumptions on which Vogel's method is based?

Transportation costs are a linear function of the number of units shipped.
Supply and demand are expressed in homogeneous units.
Unit transportation costs do not vary according to the quantities transported.
Supply and demand must be equal
The amount of supply and demand does not change over time.
It does not consider any more effects for localization than transportation costs.

14. Describe what block diagrams, flowcharts, and analytical workflows consist of.

Block diagram: It is the simplest method to represent a process. It consists of that

each unit operation applied to the raw material is enclosed in a rectangle; each
rectangle connects with the previous and the next through arrows that indicate both the
sequence of operations like the direction of flow.
Flow diagram: It has the same system as the block diagram; the difference lies in
in the symbolism that it uses.
Analytical flowchart: More than a diagram, it is a technique that consists of conducting an analysis
of the process, with the intention of reducing time and distance. It is used in redistribution of
plant.

15. Mention what the principles and objectives of plant layout are.
Total integration: it consists of integrating as many factors as possible that affect the
distribution, in order to obtain an overall view of the whole set and the relative importance of each
factor.
Minimum travel distance: When having an overview of the entire set, one should try to
reduce in the handling of materials, outlining the best flow.
Safety and well-being for the worker: this must be one of the main objectives in all
distribution
Utilization of cubic space: this action is very useful when dealing with limited spaces and its
use must be maximum.
Flexibility: There should be a distribution that is easily adjustable to changes required by the
to change the type of process in the most economical way.

16. Identify how many types of processes exist and what their characteristics are.
Product distribution: Groups workers and equipment according to the sequence of
operations performed on the product.
Distribution by process: Groups people and team performing similar functions and
they perform routine tasks in low production volumes. The work is intermittent and guided by
individual work orders.
Distribution by fixed component: Labor, materials, and the equipment goes to the same site of
work. They have the advantage that the control and planning of the project can be carried out using
techniques such as CPM and PERT.

17. Explain what the flexibility of a production process consists of.

It is when a company implements plant and equipment layouts in the simplest way.
that allows for low monetary costs and is easy to adapt at the time of
modify the production process.
18. Mention the factors that must be considered for the acquisition of equipment and
machinery.
Provider
Price
Dimensions
Capacity
Flexibility
Labor required
Maintenance cost
Energy consumption
Necessary infrastructure
Auxiliary equipment
Cost of freight and insurance
Installation and commissioning cost
Existence of spare parts in the country

20. In which cases is it recommended to use the flow diagram to make a

distribution of plant?
When will studies on distribution and redistribution of the plant be carried out?

21. Analyze the fact that when a plant layout is carried out, it is always obtained
an optimal distribution no ideal.
y
It can be said that many organizations have their team optimally distributed.
physical and human for each production process although there are times it gives many
inadequate transport that generates waits or delays that in turn raise costs of
production.
Therefore, it is always possible to improve, so the distribution is not ideal.

22. What elements should be considered in the definition of a structure of a

organization?
We must be clear: Company organizational chart and the functions delegated to each person
within the company.

23. How does organizational analysis affect the initial investment of the project?
It gives us more reliability to carry it out, but this does not mean that our investment is
feel completely safe.

24. Mention why it is important to know the current legislation of the country and the locality.
where the project takes place.
The constitution and a large part of the local, regional, and national regulations have an impact on
some way about a project, which must be taken into account since every activity
business and profitable is incorporated into a certain legal framework.
There are important legal aspects that must be known and have a good understanding of.
management of them so that the company optimally applies its resources and achieves the
goals.

profitability of a project?
In case the financial study defines that the impossibility of obtaining
sufficient economic resources for the acquisition of technology, the
the study should aim to calculate the profitability of the project using
technology that is within reach of resources optimizing results

Types of production processes:

1.- By flow: in series, by order, or by project

2.- By type of product: extractive processes, of

chemical transformation, assembly, health,
transport, etc
Depending on the selection of the production process, it can affect the evaluation
economic of

project in the following aspects:

In the cost structure.

In investments.

- In the income

In the selection of the technological alternative.

Quantity and quality of machinery, equipment, tools, furniture of

plant

vehicles, etc.

2 Identify the most important variables that must be considered in the

decision on the selection of a production process?

Important variables are:

Capital investments

Costs and revenues of operations (labor, supplies, repairs)

Machinery equipment

Staff requirements
3. It is always better to choose a productive process.
intensive in capital than another intensive in labor
work, since automation leads to lower
costs

unit production costs

Capital-intensive production methods will require a greater

investment, but of

lower operating costs due to labor

4. The optimal production process for a project is

the one that maximizes production for a given level
of investment. Comment
The optimal production process for a project is one that optimizes the
results based on available resources and market demand.

5. Analyze the different types of investments in construction

physics that are carried out during the operation of the
project
Buy land and build. This option requires a large investment.
but to the

part of the project can be recovered through the sale of both the lot and
the

infrastructure.

Buy a building that meets the minimum and desired conditions and

remodeling it: It's a good option, but the downside is that when remodeling it
it is

the same as building again.

Buy a building for its location, demolish it, and build a new one, this
implies

a double rib demolition and then rebuild.

Lease a building. If the project is not going to last long, it could be
feasible

but if it's not like that, it's better to buy it because in the end it can be sold and recovered
part of

the investment.

6 - Identify the main types of equipment balances and the

variables
what each of them must include.

Balance of machinery, equipment, and technology.

7-Explain the concept of useful life in an equipment balance

Useful life: It generally refers to industrial equipment, the concept of life

The usefulness of a machine is normally identified with that of technical life.
It refers to the number of years that it estimates it will be able to operate.
normally.

8-Analyze the Lange model to select the optimal production capacity

Lange based on the real hypothesis that exists between the amount of investment and the
productive capacity. Also, by relating investment with costs, it is possible to
establish that a high cost of operations is associated with an investment
initial decrease or vice versa, this is due to the greater use of a factor allowing
a lower investment in another factor.

In the definition of the largest technological alternative for the project,

they must identify for each of them the equipment, machinery and
technologies that are required. An important element to consider is the
residual value why? what is its treatment?

The residual value is important because it is intended to be recovered from the sale of a
good (a used item that has stopped working) deducting all expenses
necessary to complete the sale. If the asset has already reached its useful life and the
I left depreciation at zero, it doesn't mean it is worth zero, the residual value allows
"earning" some money from the sale of the unused item. Residual value = value of
acquisition expenses - accumulated amortizations.

It is always better to choose a capital-intensive production process than another.

labor-intensive, as automation leads to lower costs
production units.

In principle, capital-intensive processes assume greater efficiency.

productive, greater quantity of production and therefore lower costs than if
they compare it with the same process that is based on labor utilization
intensive. There are activities that cannot be automated and therefore there are no
option. For example: professions, doctors, lawyers, etc.

The optimal production process for the project is the one that maximizes the
production for a given level of investment

The optimal production process for a project is one that optimizes the
results based on available resources and market demand.

The result of a market study can be decisive in the

decision of the election of a technology alternative.

The market study defines variables such as product characteristics,

projected demand over time, seasonality in sales,
supply in raw materials and marketing systems. With all
These variables can determine having a choice of an alternative.
technological, depending on the size of acceptance of these variables
will acquire the machinery and equipment.

The value of the investment in equipment does not influence the cost of the product that
it would be developed upon implementing the project.

The value of the investment in equipment is the total of all investments that
allow the normal operation of the plant of a company created by the project.
As machinery, tools, vehicles, and others in general. Here it matters
the information of an economic nature; this must be included in the study report. For
so we can say that the value of the investment in the equipment does not influence
the cost of the product but are part of the project's investment that is
he wants to carry out, the case would be different if these equipment were leased,
there they would be part of the product cost.

Whenever significant discounts in costs are expected

purchase of processes, equipment, technological services, or raw materials,
it will be convenient to disaggregate the technological package.

No, because as the discount rate increases, its present values

they will be reduced, but at a different pace, since lowering the discount rates the
the alternative with more investors will have a lower current value; however,
for higher discount rates, the situation reverses, being the
the alternative with higher operating costs will have the lowest value
updated on their costs.
The emergence of a new production process that reduces investment.
required to elaborate; maintaining the quality, the same product that
currently a company produces in a profitable manner, will force it to
replace the equipment as soon as possible.

A technological study must be conducted to choose the technology that optimizes the
results.

Chapter 8

1
the proposed size should only be accepted if the demand is
clearly superior to that size

No, since the determination of size is related to and responds to a

interrelated analysis of a large number of variables of a project:
demand, availability of supplies, location and commercial strategic plan
future development of the company that would be created with the project, among others.

2
Identify the main factors that determine the size of a
project
There are three basic size situations that can be identified regarding the
market: the one in which the total quantity demanded is clearly lower
that the smallest possible production units to be installed, that in which
the quantity demanded is equal to the minimum capacity that can be installed, and
the one in which the quantity demanded is greater than the highest of the
possible production units to install.

What is the main deciding factor in the study of size of a

plant to manufacture the supplies it uses and today buys from a company in
functioning?

The availability of supplies, as these may not be available in the

desired quality and quantity.

4. Why the commercial strategy defined for the project may be

more important than the amount of the claim when defining the size more
suitable for a project?

Due to the information it provides regarding market concentration

to achieve the maximum profitability of the project.

5. Indicate a case where size clearly generates economies of scale.

and other diseconomies of scale.

A company that clearly meets the demand for products can cover both
national demand as a foreigner generates an economy of scale,
so it manufactures products at optimal level at low cost (The oil industry, the
chemical industry, manufacturing of computers, mobile phones, in
counterpart The diseconomies of scale are the factors that cause the
large companies produce goods and services with an increase in cost
per unit of each product, have been studied significantly less than the
opposing forces called economies of scale, the elements that
they allow companies to produce goods and services at unit costs
increasingly lower.

6
Explain the concept of scale factor. What does it mean for this to be?
greater than, equal to, less than one?
Equal to one, there are no economies of scale. If it is greater than one, there are diseconomies.
of scale.

7. In what case do economies of scale, even if they exist, not play a role?
no role in the decision

In those where the factors of availability of inputs and costs of

distribution has a predominant weight.

8
Explain the relationships that exist between the internal rate of return
marginal, the incremental net present value and the maximum net present value, in
the point where the size becomes optimal.

By analyzing the cash flows of each size, it can be defined a

marginal internal rate of return of the size corresponding to the rate of
discount that nullifies the differential flow of alternative sizes,
as long as the marginal rate is above the cutoff rate defined for the project,
It will be advisable to increase the size. The optimal level will be given by the point in the
which rates are equal
9. "By increasing production and sales, one can move from a situation with
positive profitability to another negative

Yes, since size is associated with economies of scale effects, which have repercussions on
the operating costs and sales levels, which are directly related
with the project's profitability

10
What distinguishes the analyses that must be made to study the sizes?
optimum with growing market and with constant market?

In general, when in the presence of a growing market, this variable takes

more important, since it will be necessary to choose to define an initial size
large enough for me to respond to that in the future
market growth, or another smaller one that is expanding from
agreement with the possibilities of production scales.

CHAPTER 10
Explain the importance that they have for the projects
administrative procedures

Starting from the fact that the main objective of administrative procedures
it is about finding the best way to carry out an activity, taking into account
The factors of temperature, effort, and money; + all their importance is due to the necessity.
from a strict control to detail the action of the routine work that the project
to thus achieve greater efficiency when ordered in a single way is
Why are the administrative procedures so important within a
project. The importance of administrative procedures in preparation
and project evaluation is that way a structure is established.
administrative that is able to efficiently solve the multitude of problems that
that organization is incorporated. To achieve the proposed goals and objectives of a
project, it is necessary to channel efforts and good management of the
available resources, whose instrumentation is achieved through the component
administrative organization, where different basic variables are integrated
for its management:

1. The organizational units

2. Human, material, and financial resources

3. The Work Plans

2. Indicate your reasons why it is not

it is advisable to calculate the administrative cost as a
percentage of total cost

By performing this operation, it is assumed that any alternative of

administrative procedure adopted in the implementation of the project
it will have a similar cost in relative terms to the cost of each project which does not
it is always fulfilled, since, with the advancement of technology in the organization
business, the procedures change which influences in a certain way in the
administrative systems. It is worth noting that the qualitative and quantitative analysis
will be affected by having different options, which can clearly have
different costs.

3. Indicate the interrelationship between the studies

of the project and the administrative procedures

The relationship between these is that in the study of the project, the
conclusions regarding distribution channels, sales force or branches,
they will provide basis for administrative definitions, just as happens with the
decisions made regarding the location, size, and cost of
administrative procedures.

7. How does organizational analysis affect

amount of the initial investment?

The calculation of the investments derived from the organization is directly based on the
results of the designed organizational structure, its sizing and the
definition of the functions that will correspond to each unit will determine effects
on investments in physical works, equipment, and work material.
Al = q in technical study the organizational study must provide information regarding
investments that must be made during the execution of the project or for purposes already
of maintenance or expansion of the initial structure.

The conditioning of the offices cannot be improvised either.

Environmental conditions are not the same for all units of the
organization all of this can be supplied with approximate certainty by this the
organizational study for greater accuracy in the quantification of investments
of the project.

8. What is the operating cost that is most related

directly with the organizational structure? What
elements to be taken into account to calculate it?

There are various costs used by the project's organizational structure that
they are basically related to personnel remuneration and although not
it involves a direct cost that influences the determination of taxes and profits
 when discounted accounting-wise. The design of the structure is the result of
an analytical process that divides the area of activities according to the
administrative procedures. The elements are:
a) the design of the structure
b) the determination of remuneration
c) the geographical location

The concrete variables in the positions of an organization are the division of

I work in departmentalization, spheres of control, and delegation.
Mentalization combines and groups the positions achieved by the division of labor.
this factor is determinant of the organizational structure of the company. The types
The most common forms of determination are by territories and products.
clients the control sphere determines the appropriate size of units
subordinate to the supervisor at each of the levels of the
organization.

9. Identify at least eight of the main results.

what are obtained from the organizational study of a
project

✓Procesos de división del trabajo ✓Departamentalización✓Esferas de

Delegation.
An organizational structure is defined according to the requirements.
own that requires its execution.
The results are closely related to those that originate
in the other studies and, therefore, there must be a coordinated implementation and
complementary between them.

Determining the viability of making an investment, often is not

justifying an exaggerated accuracy in the determination of the structure and its
costs.
A double economic influence in its evaluation: A direct effect on the
investments and the associated costs in a specific size of operation, and a
indirect effect on operating costs derived from procedures
administrative associated with technological size and complexity of the structure
designed organizational.
Organizational decisions must take as data the
results of the localization studies, of size, of procedure
administrative.

Chapter 9
In what case would you recommend using the method of precedents?
industrial to determine the location of a project?
 When a plant of a similar industry is installed in the location, since that
It will mean that the area is suitable for the project.

How would you explain that locational factors become irrelevant for
decide the micro location of the project?

The selection of the macrozone will have to consider for the same project,
location factors different from those that will be used in the election of the
micro location, for example: tax policies, climate influences, and others
What is important for the choice of macro localization, is not relevant.
to choose a micro zone within that one, since its effect would be common
to her all.

If the priority locational factor for a project is transportation and if the

the volume of raw material to be mobilized is higher than that of the product
finished, the location will tend towards the sources of raw materials.
Analyze

True, this will help maximize the profitability of the location, since
The cost of transportation will decrease.

The locational problem does not exist when the one commissioning the study
the project has the physical infrastructure for its implementation.
comment

False, we must choose the location that maximizes the profitability of the project.
taking into account all the factors that must be taken into account for example;
proximity to the market, wage topography, communications, factors
environmental, proximity to supply sources, etc...

Tags:Analysis and determination of the optimal location of the project, Analysis and
determination of the optimal project size, Concept of technical study of a project,
Definition of technical study of a project, Determination of the optimal location of
Project, Determination of the human and legal organization required for the
correct operation of the project, Technical study of a non-productive project, Project no
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QUESTIONS AND PROBLEMS

 1. What is the relationship between the study of engineering and the other studies of the project?
In a production process by order, the manufacturing for stock is important.
due to the difficulties that arise in the production scheduling. Comment.
3. Identify the productive processes that occur in a hospital project, of university.
city and a service station for automobiles.
4. In what aspects can the selection of the production process affect the evaluation?
project economics?
5. Identify the most important variables that should be considered in the decision of
select a production process.
6. It is always better to choose a capital-intensive production process than another intensive one.
in labor, since automation leads to lower unit production costs
Comment.
7. The optimal production process for the project is one that maximizes production.
for a given level of investment. Comment.
8. When comparing production processes, one is capital-intensive and the other is not.
labor, how does the discount rate on the costs used affect the
election of the process?
9. Analyze qualitative factors for selecting the productive process of a project.
metallurgical.
10. Explain what the critical mass technique consists of.
11. Analyzing the Lange model to select the optimal productive capacity.
12. Define an analysis methodology identifying the main variables, to carry out
the technical study of the following projects: a) creation of an education college
media, b) re-opening of an airport, e) operation of a dairy plant.
13. In the study of a new product line for a functioning company,
The market research concludes that it is possible to sell 30,000 units annually.
additional product $350 each, a paying a sales commission of 1%.
The technical study calculates that for that level of operation, the following could be expected
variable costs
- direct material $ 80
-direct labor $ 40
-manufacturing costs 30 $
The annual fixed costs of manufacturing, administration y sales, reach a $3800000,
PROJECT ENGINEERING 113

which include $2,000,000 of depreciation.

The investment in equipment amounts to $20,000,000, which will be financed 70% with
bank loans at 10% interest and the balance with own capital that is required
12% annual profitability. The above is compatible with the debt-capital structure.
of the company.
The new line ofproducts will require increasing the investment in working capital, which
It is estimated at 4 months of disbursable operating costs, before taxes and
Financial expenses. Working capital will be financed in the same proportion. y costs
that fixed capital.
The equipment has a real lifespan of10years, after which they will have no value
depreciation. For accounting purposes, they are depreciated linearly at a rate of10%annual.
The taxes amount to10%of the utilities.
Alternatively, the technical study indicates the existence of a smaller team, with a cover.
city of up to 25,000 annual units, which would allow for a reduction in manufacturing costs
a $20 and fixed costs at $3,300,000 annually, considering that there would be savings
of $300,000 in maintenance and $200,000 in depreciation, for how much is this equipment
it would cost $18,000,000.
The person responsible for the market study indicates that the production of 25,000 units does not
is sufficient to meet the expected demand. However, leaving the demand unsatisfied
Would you allow raising the price to $390 per unit? On the other hand, the suppliers grant
under the volume discount for purchases achieved with 30,000 units, although not with
25,000. This would imply considering, for this level of operation, a cost per material.
unit direct cost of $88. What technological alternative would you recommend selecting? What
Does the equilibrium price have each alternative?
14. In the study of a new project, the market research concludes that it is possible
sell 40,000 units annually of a product at $450 each.
The technical study estimates that at that level of operation, a cost could be expected
variable of $60.
The annual fixed costs of manufacturing, administration, and sales amount to $4,800,000.
which include $2,500,000 in depreciation.
TheInvestment in equipment amounts to $25,000,000, which will be financed 60% with
bank loans10%of interest and the balance with own capital required
12% annual profitability.
The new product will require a working capital investment, which is estimated at
40% of the total disbursable costs.
Working capital will be financed 100% with equity.
The equipment has a real useful life of 20 years, after which it will have no value.
depreciation. For accounting purposes, it is depreciated linearly to arate10% annual.
The taxes amount to10%of the utilities. By the tenth year, the equipment will have
a market value of $5000 OOO~
Alternatively, a similar product can be produced with another equipment that costs.
$35,000,000, but operating with variable costs of only $52ywith fixed costs of
$5300000.
Its actual useful life is 20 years, after which it will have a market expected value.
$8000OOQ.
If all other variables were common, what alternative do you recommend? What is the
equilibrium volume that makes both alternatives indifferent?
 114 PART 111E: THE STUDY
TECHNICIAN

CASE: PROFRUT, SA.

The company PROFRUT, S.A., belonging to the agro-industrial sector, was created in 1960 and initially
the mind only produced tomato sauce, reaching sales that have made it occupy one of
the top places in the national market. Later, it diversified its production. ,
two new product lines are being created: canned fruits and jams.
Currently, the feasibility of producing and marketing a new line is being analyzed. of
products, what are the prepared canned dishes. The project is being evaluated for 10
years.
Given that the current installed capacity is operating at nearly 100%, it would not be possible.
use it in the production of new products .
From the technical study being conducted, it was concluded that there are 2 processes.
alternative productive, feasible to implement.
The first alternative, which involves a higher degree of automation than that used
currently, I would need the following costs:
$ 5000000
Land purchase 14000000
Construction of the floor (buildings) 16,000,000
Machines and equipment
4000000
Complementary works 1,000,000
Energy, repairs, and others (year) 5
Unit labor cost 8
Unit cost of raw materials

The second process requires the following expenses:

Purchase of a plant and its remodeling $15000000

Equipment and machines 10000000
Energy and others (per year) 700000
Unit cost of labor 8
Unit cost of raw materials 10

For both production processes, the incomes are the same and it is expected that we do not ...
would require reinvestments during the useful life of the process.
The production volume in the second process can be easily altered without incurring
At higher costs, given that their technology is quite flexible. In contrast, in the other
This process has less flexibility, as it requires more adjustment time.
In the event of unexpected increases in demand, the possibility of the first process
to expand its capacity beyond the projected maximum capacity is greater than
the other process.
On the other hand, in relative terms, labor is more abundant for the second.
process that for the first one, since it requires certain qualified personnel that, although
it is not scarce, it is not found in large quantities, as in the other alternative.
A characteristic of the first process described is its greater ease of adaptation. a
the production of fruit juices, product line not yet exploited by the company .
In March 1983, at a meeting of the team studying the project, there was a discussion about
from the demand estimation for the product. The general manager of PROFRUTSA, Mr.
Philips finds the projected demand too optimistic, as he says, 'not only
Canned prepared dishes should be considered competitive products.
in the market, but also those that were presented in other types of containers, such as
For example, the aluminum trays. After criticizing other aspects considered in
The demand estimate suggested punishing it by 30%.
 PROJECT ENGINEERING
115

Mr. Solar, responsible for the market study, did not consider them competitive.
the products mentioned by Philips, since they "do not offer transportation advantages,
storage and speed in its preparation for the consumer that the products have
canned products. He also argued: "I firmly believe that we will be able to sell 250,000 units.
estimated monthly data in the demand projection, as there is a strong
the necessity of our product in the market to which we will offer it.
The meeting ended without reaching an agreement, postponing it for the next one.
meeting. Upon leaving the room, Mr. Philips asks you, the head of the study
technician, who will present in the next session his recommendation on the production process
it must be adopted.

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