feasibility guidelines

ChE 423 FEASIBILITY REPORT ASSIGNMENT GUIDELINES Ir. zlem ZTRK

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This paper is to guide you while preparing your ChE 423 Feasibility Report assignments. The report

should include:

1. MARKET SURVEY (PRESENT AND FUTURE DEMAND AND SUPPLY, NEW USES, PRICE RANGE OF PRODUCTS, CONSUMER CHARACTERISTICS)

2. COMPETITION (PRODUCTS,PROCESSES AND PRICES OF COMPETITORS)

3. PRODUCTION METHOD (PRELIMINARY DESIGN)

4. PLANT LOCATION AND LAYOUT

5. TECHNOLOGY AND PATENT SITUATIONS (IF APPLICABLE)

6. ORGANIZATION AND LABOR REQUIREMENTS

7. RAW MATERIALS (COST AND AVAILABILITY)

8. WASTE DISPOSAL AND SAFETY/SECURITY CONSIDERATIONS

9. STORING, PACKAGING, SHIPPING REQUIREMENTS

10. FACILITIES AND EQUIPMENT THAT SHOULD BE BUILT OR PURCHASED ( INCLUDING LAND, BUILDINGS, UTILITIES, SERVICES, ADMINISTRATIVE FACILITIES, PRODUCTION AND TEST

EQUIPMENT)

11. INVESTMENT COST (CAPEX)

12. PRODUCTION COST (OPEX)

13. FINANCIAL ANALYSIS

14. PROFIT AND RETURN ON INVESTMENT

15. OPTIMIZATION

16. SENSITIVITY

17. BASIC IMPLEMENTATION PLAN


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In order to be able submit a succesful feasibility study you are encouraged to follow the below steps:

1. Form your team (5-6 student per each team, you are free to choose your group members) Due: 2 weeks after the start of semester

2. Select a topic (You are free to choose the product, of course the expectation is that the product is chemical/food industry related. Please have the time to imagine what would you like to produce

in a field related with your background (chemical/food) if you would be given enough capital to

follow your passion. The topic you choose first needs to be alligned with me in order to proceed

with the next steps. Creativity and uniqueness is highly encouraged) Due: 4 weeks after the start of semester

3. Submit your workplan. The workplan should have a breakdown of the work packages and should adress the responsible team member. The deadline for the completion of the report is the end of

the semester, however you are advised to make your planning to complete one part of the report

weekly/biweekly and have a discussions with me to make sure you are on the right track.

Due: 5 week after the start of semester

4. Start following your plan and dont forget to communicate with me in between! 5. Submit your report and make a presentation

Due: End of Semester


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Please find below the grading criteria that I will use while evaluating your final report:

ChE 423 Feasibility Study Grading Criteria

Criteria Impact Remarks

Uniquenes of the topic 5%

Assume that you will get the amount of capital you need to start your own business in the field of chemical/food industry. What would you like to do? You are advised to think out of the box and select a 'unique' topic. In case a well known process is studied, a unique element is advised to be included (i.e. a new Raw Material).

Planning and Communication 10%

Your commitment to the schedule, and communication with the instructor during the phase of preparation, quality of the report overall (just format)

Presentation 10%

Presentation should reflect all the content but should be brief and to the point. Not more than 20-25 slides. Presentation skills (way of presenting) will also be evaluated. Assume that this presentation will be used to convince your manager/bank or whoever it is that will give you the capital to implement your idea.

Market Analysis, Plant Location 10%

Quality of Market Analysis, Competitors in the field. Discussion on plant location, reasons for the selection should be explicitly mentioned.

Process Design 10% Quality of Process Design, proper selection of unit operations and process equipment. Proper sizing of equipment.

CAPEX Calculation 10% All the items in CAPEX (refer to the lecture notes) should be included, where applicable.

OPEX Calculation 10% All the items in 'Production Cost' (refer to the lecture notes) should be included, where applicable. Economic Evaluation 10% Calculation of profitability, ROI, payback period and etc

Sensitivity 10% You should be able to identify the cost items that has a relatively high influence on the profitability and make a sensitivity to access the dependence of profitability to changes on the defined parameter.

Discussion 5% Your understanding on the calculated parameters will be evaluated. You should be able to evaluate the meaning of all the calculations and make a proper suggestion on whether or not making the proposed investment.

Optimization 10% Based on the sensitivity and discussion, you will propose parts that could be better optimized. Detailed calculations will be mandatory for the selected groups.

feasibility guidelines

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