There is a lot of published literature on Project Formulation and Evaluation, so a manual, however, could be unnecessary, however teaching experience has taught us that the content of this literature sometimes does not meet the student's expectations, or does not meet them. partial.
manual-of-successful-entrepreneurThis statement is not intended to question the authors who have preceded us, or the content of their textbooks. Rather, I think that students learn by doing and reading something simple that could teach them more than a simple class. This resource is called experience and there is no money in the world that can buy it.
Investment, social formulation projects, etc. They are not copies of anyone, they are the product of research, talent, creation, and no project is the same as others. Because it changes the capital requirements, conditions, acquisition of equipment, etc. What we can do the most is to approach the introduction of a feasibility study with the requirements of a prestigious organization such as the Regional Fund of Guyana. Because I have the experience of conducting studies for other organizations, both banks and Foncrei (Fondo de Crédito Industrial de Venenzuela). And the difference is very little.
I wanted to make a simple manual, aimed at the Students of the Gran Mariscal de Ayacucho University, I hope I can meet the expectations.
I wanted to support myself in my experience, and then try to transmit the experience of other renowned authors, who I do not know, however, Professor Adolfo Blanco R. has been my guide since his text has been for me, a guide in the Formulation and Evaluation of Projects.
I hope again to be the guide or the help of my disciples.
Success in a company, as we all know well, is not achieved just by knowing the answers to questions: successful entrepreneurs differ from other people, they behave in a certain way and manifest certain personal business characteristics, which make them different from the the rest. This manual also gives you an idea of these basic personal characteristics that have been shown to be closely linked to business success.
What does it take for an idea or a project to be successful? I think about what I have learned in my little but fruitful time, innovative people, enterprising people and above all capable of dreaming but without staying dreaming, but harvesting an idea, and working for that dream, or idea. Until forever because there is no limit, the sky is the limit.
GRATITUDE
This little manual is dedicated to many people, but especially to GOD, and to my Father DR. LEON KOCH GARCIA THANKS for all that the two of them knew how to give me.
Dedicated to all those people who have dreams and want to leave their mark in time.
INTRODUCTION
If you want a bank or someone to invest money in your company or your idea, or you are considering investing money yourself, there are a number of questions that you should be in a position to answer. The purpose of this Handbook is to suggest what these questions should be and give you an idea of where you can go for the answers. Many financier and other investors require a written business plan before investing money, and many entrepreneurs like to write a business plan themselves, even though they never show it to anyone.
What is a business plan is a written document prepared by individual entrepreneurs or their partners, which describes the goals and objectives of the business and includes the necessary measures to achieve such goals and objectives, it is also called a business proposal or action plan..
Your plan can be completed, you have given your idea credibility and authority.
"We want to give simple answers, and methodologies that can somehow serve as a focus for your feasible study projects."
“PROJECTING is a passion for me, but more important is feeling part of a dream, and of something tangible of something that you made possible. "JKT (2005)
ECON. JOSEFINA KOCH TOVAR
OVERALL OBJECTIVE:
Get the participants to internalize the structure and elements necessary for the development of an investment project. At the end, the participants will be able to identify the elements of a project, in order to start the conceptualizations and the development of a document that will be used to request financing, start and / or improve a business unit established, or to be formed.
SPECIFIC OBJECTIVES
Identify the elements to consider in a market study, in order to make accurate decisions when starting the development of a product or provide a service.
Structure a technical study, recognizing its components and interrelated with the elements that make up a market study and a business plan.
Prepare a business plan, and its most outstanding elements, that includes a business plan.
Design a successful business plan, taking into account all the principles of finance and administration capable of making this project feasible.
Create a Business Plan that contains everything learned in all practical subjects but with methodologies that can be used for the community and the development of these capacities.
BRIEF REVIEW OF THE ECONOMY
BASIC CONCEPTS OF ECONOMY AND FINNINGS.
ECONOMY
It is important to master, internationalize some concepts, taken from Economics and Finance, to carry out an excellent
investment project, here are some basic concepts, investigated by the author.
ECONOMY:
The economy, in general, studies the most appropriate way for the human being to obtain the greatest well-being, or utility, it is possible that the goods and services that it produces to satisfy its needs with the scarce resources that it has. In other problems, the problem that the economy tries to solve consists of finding the most efficient way to produce goods and services required by society to satisfy human needs, taking into account the scarce resources that are available to them.
The term scarce resources refers to the fact that economic goods are scarce, the so-called free goods such as oxygen and the sun that man has, are not the object of study because their main characteristic is that they are abundant.
It is that goods exist in nature but in relation to time, and other productive factors are in scarcity.
Man cannot dispose of something that is found in nature in an unlimited way, since everything has a time and a space.
For example, PETROLEUM is in Venezuela, but it has a time and is available up to a certain limit.
THE PRICE LEVEL AND INFLATION:
We saw that a sustained increase in the price level generated inflation, however, this can be generated through two ways: by expansion, or growth, of consumer demand while the quantity supplied remains unchanged, and by contraction, or reduction of the producer's supply while the quantity demanded remains unchanged.
In both cases, prices tend to rise like this on the chart.
If we start from an equilibrium position PO, QO in the graph on the left, we see that an expansion of demand from Do to D1 would raise the quantity demanded from QO to Q1. Remaining the quantity supplied in QO Simultaneously, the price PO would rise to P1 generating inflation.
It is found that, in both chaos, there are excess demand over supply that will make the price level rise, generating inflation.
CHAPTER I:
1. INVESTMENT PROJECTS
Every Project is developed around an idea, which arises as a consequence of stopping a need for a business opportunity or by identifying a market niche.
THE IDEA OF CREATING A COMPANY:
In this phase the two key starting elements of any business project will be analyzed.
The business idea
The promoter
The business idea:
The fact of creating a company is accompanied by a high degree of uncertainty, both due to the rapidity of the changes that occur in the economic environment and the high competition existing in each one of the sectors of activity.
The business project must take off such uncertainty as much as possible, trying to ensure its viability and consequently its permanence in the market.
Where is the origin of the ideas or projects that become successful companies?
It is thought that to launch a novel product, there must be certain qualities such as:
This product can be made better.
A better service could be provided.
Cheaper price.
Other uses.
Sell in another way.
Perform on other sites.
In any case, the most important thing is that the promoter is willing to launch his product. or idea.
THE PROMOTER:
Business activity requires personal and professional skills that must be taken into consideration.
Personal Characteristics: Being an entrepreneur
Being a leader
Assuming your responsibilities
You are a good organizer
You are a good worker You
know how to make decisions You are
in good health You
know how to keep your word
People can trust what you say.
CHARACTERISTICS OF ENTREPRENEURIAL BEHAVIOR:
Search for opportunities and initiative
Run calculated risks
Demand efficiency and quality
Persistence
Compliance
Personal skills:
Work
experiences Knowledge of outside experiences
Assessment of the environment
Experience as an entrepreneur or manager.
1. WHAT IS AN INVESTMENT PROJECT
It is a document in which the objectives and strategies to be developed are collected, it is a written document. What is an
Investment project: it is the prospective plan of a unit of action capable of materializing some aspect of economic or social development.
A project is nothing more or less than the search for an intelligent solution to the approach of a problem that tends to solve, among many, a human need.
SCOPE: every decision must respond to a previous study of the advantages and disadvantages associated with its implementation, the depth with which it is carried out will depend on what each particular project advises.
In general terms, there are five specific studies that must be carried out to evaluate the project; those of commercial, technical, legal management and financial viability, if it is a private or economic investor.
HOW I STRUCTURE MY INVESTMENT PROJECT
Project: I
define the product
Importance of product development / service provision.
MARKET STUDY TECHNICAL STUDY FINANCIAL STUDY
Real existence of customers Information on the production process
. Or provision of service. Consequence of the market study and technical study
Willingness of customers to pay a price. Data on technical profile employment needs. Main basis for making a decision in this analysis
The quantity demanded
The form of payment
Data on the facilities and equipment that are associated with the production process. Statement of income
CHAPTER II: MARKET STUDY
Defining the product or service
Demand
Supply
Competitors
Prices
Marketing
2.1 THE DEMAND
"Demand is the quantification of the real or psychological need of a population of buyers, with sufficient purchasing power to obtain a certain product that satisfies said need."
It is the amount of products that the consumer would be willing to buy or use at a certain price. It must be quantified in physical units ”.
With the demand analysis, it is possible to determine the conditions that affect and determine the consumption of a product or service as a function of time.
To analyze the demand, it is necessary to carry out a market research on our potential clients, for this we must segment the market, which make up the target market. “
In the analysis of the demand we consider:
Current demand: Local, Regional, National, and international information.
Future Demand: Projections And Forecasts:
These factors allow us to roughly determine the likely consumption of products or use of services.
Probable Consumption being affected by the sum of local or national production plus imports, minus exports and the existing inventory levels.
To estimate the demand, the Per Capita Consumption of the product is also considered, where there are two situations to consider this calculation.
1. In case the product can be consumed by the entire population, example: milk, water, toilet paper, where the formula will be:
Probable Total Consumption / Total Population
2. the product is directed to a specific segment of the Market, example: Shaving cream, baby diapers, dyes, etc.
Probable consumption Total / Selected population
Demand analysis is the process by which the conditions that affect and determine the consumption of a product or service as a function of time can be determined ”.
"Current Behavior": Identify the demanders of the product, how many units of products are able to purchase. And indicate the frequency of purchase: annual, monthly, daily. Indicate the possibility of exporting.
"Basic Statistical Series": Statistical tables must be prepared, where the behavior of demand is reflected over time and indicate the source of data collection. (It is recommended to study a period of more than ten years).
"Methods used for data evaluation". Indicate the methods used for statistical series (example: straight line methods, moving averages method, least squares). Etc.
Determination of the Demand curve:
According to the methodology used to evaluate the data. Graph them in order to see the behavior of the demand.
Fraction of demand that the Project will meet:
Estimate future demand and indicate the fraction or quantity to be covered by the project and justify the percentage of the market to be covered.
Factors that condition future demand: Point out and explain the factors that condition the consumption of the products contemplated in the project (example, price, quality, imports, economic policies, durability, presentation, purchasing power, of the population, etc.)
2.2. Market Segmentation: Market
segmentation consists of identifying buyer groups with the same needs and wants. The objective of segmenting the market is to divide it into parts or segments of customers, with equal needs or desires, to satisfy.
Typology of Consumers:
Characteristics of potential consumers, for example if the service is made of brass and paint, who are the consumers, insurance companies, insurance companies, and individuals.
Clients
The company must analyze and characterize the client's markets, in order to select the type of clients it will serve. Due precisely to the existence of five types of clients such as:
Customers Consumers: individuals and households that buy goods or services for their own consumption. It is necessary to distinguish in this classification between customers and consumers.
When the customer is the consumer:
It occurs when the person who makes the purchase is the same person who will benefit from the product or service purchased.
When the customer is not the consumer
Who makes the purchase or acquisition of the product or service, does not benefit from the use of the product or service. An example that illustrates this concept is found in a mother's purchase of disposable diapers for her baby.
Industrial Customers: Business organizations that purchase goods and services to process or use them.
Government Clients.
Government institutions, which buy goods and services from others in need.
International Customers: foreign buyers, including consumers, producers, resellers, and governments.
2.2. THE OFFER
"It is the amount of a product that reaches the market through domestic manufacture and imports, in accordance with current prices.
Indicate with whom you are going to compete, what is the production capacity, at what price they sell, based on what they compete (payment terms, quality, prices, others).
Distribution and typology of the bidders: Indicate where they are located, main characteristics of the competition, indicate mechanisms they use to achieve customer satisfaction, products that offer quantity of products that they sell annually, monthly, or daily, markets that they cover, prices that they offer.
CURRENT BEHAVIOR: Indicate the factors that influence the behavior of the offer, for example: if it is seasonal, sales policies, competition, etc.
Current Behavior: Indicate the factors that influence the behavior of the offer, for example: if it is seasonal, sales policies, competition, etc.
Imports: Consider the volumes and characteristics of imports and their impact on supply.
Basic statistical series: Prepare statistical tables, where the behavior of the offer is reflected over time and indicate the source of obtaining the data. (a period of ten years is recommended)
Data methods used ”Indicate the methods used (statistical tools)
Determination of current and future supply: Mention the factors that limit or favor the increase or decrease of supply in the market.
PRODUCT PRICES:
Specify the prices of the products to be offered and make a comparative table with the prices of the competition.
COMPETITION ANALYSIS:
It is at this point to describe the competitors, who they are, where they are, what size they are, how much they use of this size and what is the market share or total sales volume. Evaluate the strengths and weaknesses of the competition and their products or services. This competition should be analyzed in light of aspects such as volumes, quality and behavior of those products or services, prices, guarantees, among others. Equally important is the evaluation of technical, financial and marketing capabilities and trends in their participation in the total market.
Knowing the differentiation strategies, the protection barriers and the marketing strategies of the competition are elements that will allow us to define our own competitiveness and marketing strategies to capture the marketing participation. Also define our competitive advantages, our own protection barrier and detect the weaknesses of the competition that can be exploited to guarantee that market share to our company.
THE COMPETITION
They are all those companies that make and sell the same thing as you and the same clientele in your target market.
The competition is necessary to investigate and analyze it, for this we must collect information on a representative sample of it, about the competition it is necessary to investigate.
Where are they located?
How many are they?
How many are according to the size?
What products do you offer?
Who are your customers?
Why buy from you?
What do your customers think of your products?
What are your tactics and forms of advertising?
What are your forms of distribution?
Producer- client-
Producer- Retailer- client
Producer- wholesaler- retailer- client
What are your advertising tactics and / or forms?
A. Means of communication to advertise.
B. Product characteristics, price, distribution, and if the service are emphasizing what to do in your advertising?
C. Offers and discounts.
D. As in the case of demand segmentation, a market structure can also be generated from the perspective of competitors as follows:
Monopolies
Oligopolies
Purely competitive markets
Market with imperfect competition
Several aspects to be taken into account in the analysis of competition:
Location of competition
Seasonality of supply Product
lines
Installed capacity.
COMMERCIALIZATION:
It is the set of activities related to the transfer of goods and services from producers to the final consumer.
Explain the marketing channels that the company will use to sell the product and the promotion mechanisms to use.
PROMOTION:
Businesses today require more than just developing a good product, setting a price for it, and making it available to end customers. Businesses must also communicate with their customers, what they say they say should never be left to chance.
DEALERS:
Distributors perform many key roles, including:
Investigation.
Promotion
Contacts
Correspondence
Negotiation
Physical distribution
Financing
Risks.
LEVELS OF DISTRIBUTION CHANNELS:
- Manufacturer ------ customer Manufacturer --- retailer - customer Manufacturer -– wholesaler -– retailer - customer Manufacturer-wholesaler-reseller-customer.
Review, see Kotler “Marketing. Recent edition.
CHAPTER III: TECHNICAL STUDY
I. Process and technology
II. Inputs
III. Plant capacity
IV. Personnel Requirement - Organization
Its general objective pursues the determination of the installed and used capacities of the company, as well as that of all the costs involved in the production process, and to achieve this it must cover, at least, the following aspects:
Location of the plant
Infrastructure of services
Effluents and losses from the process
Investment schedule
Work shifts
Installed and used capacity
Technology to be used
Quality control
Production process
LOCATION:
1) The purpose of the study of the location is to select the most convenient location for the project, that is, the one that, compared to other possible alternatives, produces the highest level, produces the highest level of benefit for users and the community, with the lowest social cost, within a framework of determining or conditioning factors.
2) From the Macro location to the “Micro location”.
3) In general, a suitable process for the study of location is to approach the problem from the macro to the micro. First explore, within a set of criteria and parameters related to the nature of the project, the region or area suitable for the location of the project: municipality, area, rural, urban area, and within these the most favorable geographical areas or subsectors.
4) Locational factors
5) We call locational factors the elements that influence location analysis. They act as a guiding, determining or restricting parameter of the decision. The following is one of the most common relationships.
a) Location of the target population
b) Location of raw materials and supplies
c) Stock of communication routes and means of transport.
d) Infrastructure facilities and public services, water, toilet, etc.
e) Topographic conditions and soil quality.
f) Other conditions for example close to people to work. Easy access to labor.
g) Ecological Control
h) Municipal regulatory plans
i) Land prices.
j) Local policies.
k) Size
l) Technology
There is, in general, one factor that is more important than another. The importance of each of the Locational factors is associated with the specific nature of each project.
Micro location:
It consists of the specific selection of the site for the installation of the project, once the macro-location analysis has been completed.
Factors: Stock
of communication routes
Means of transport
Basic public services
Topography and soil study.
Environmental conditions
Size
Technology
Availability of area for current requirements and future extensions.
PLANT LOCATION
At this point we will detail the geographical location of the main plant as well as that of other plants or offices of the company, if any.
The location of the plant is important: the proximity of the raw material, access to labor, infrastructure of communication routes, infrastructure of services that allow the product to be carried.
SERVICES INFRASTRUCTURE
Access to the proximity of public services facilitates the operation of the plant.
Access to communication routes and all public services both from the point of view of suppliers and raw materials, this is a determining factor in the location.
EFFLUENT AND PROCESS LOSSES
Every production process generates physical losses in the production process, which must be calculated, this information is given to us by a plant engineer, from the same company. (since they are the ones who know the process), remember You are a facilitator.
Such as the inclusion of treatment plants, the recycling of waste and the income or costs that its management may entail.
INVESTMENT SCHEDULE:
A technical study of the project provides us with basic information on the costs
and investment of the operating process.
A technical study must consider:
A relationship between the product and the different raw materials that can be used. Let's report the costs of all components:
Information about the production process or the provision of services.
Data on employment needs (workers) in terms of quantity, characteristics, technical profile.
Data on the facilities and equipment that are associated with the production process and that will guide us on investment needs.
TECHNICAL ANALYSIS:
The objective is to provide the information that allows the economic evaluation of the project and secondly to establish the technical bases on which the company as a whole will be built and installed.
In this phase, the way to carry out a detailed technical analysis that provides cost estimates and investments of the production process will be described sequentially.
IN any study a certain sequence needs to be followed; however, the effort, time, and money allocated to the study will depend on the size of the project, the number of technology alternatives selected for the product, and the desired accuracy in the cost estimates.
3.3. FACTORS THAT CONDITION THE SIZE OF THE PLANT:
The size of a plant or company is known as its installed production capacity. This capacity is expressed in the quantity produced per unit of time. That is, volume, weight, value, or units of product produced per year, month, shift days and hours, etc.
The capacity of a project or company is expressed, not in terms of the amount of products obtained, but in terms of the volume of raw material that is processed.
In projects that have teams of different capacities, the project's capacity is given in terms of the teams with the lowest capacity.
For those projects that manufacture or process various products with different characteristics, the size of the project is customarily specified with respect to the production of a batch or mix of products.
The definition of the size of a plant originates the appearance of three terms that are necessary to know, such as:
INSTALLED CAPACITY
The capacity that is going to be installed is the one that is going to be projected, for example, if I am going to work increasing production by one new equipment, the capacity of the plant will be increased, if now the company is working and in one day it produces, for example, 50 screws newspapers, with a new machine, will be able to increase the volume of what is produced.
CAPACITY USED
The high percentage value of the start of production, as well as the annual growth percentage value of the start of production, as well as the established annual growth, are a consequence of the market analysis, the planned development of the production, based on said analysis, and of the capacity of the technology used.
Production Capacity used or real:
It is the production of one or more products that the company's system of workers and machines can generate, according to given
market conditions and the availability of resources.
Indicate and explain the percentage of utilization of installed capacity, taking into account demand, learning curve, availability of raw materials, labor, etc. Explain the situation.
Explanatory tables annex at the end of the text.
Production Program:
Considering the installed capacity and the percentage of capacity utilization, indicate the production program in a table.
PROCESS AND TECHNOLOGIES
The first step of the technical analysis is to determine the technology that will be used in the project for the production of goods (products) and / or services.
All the elements that make up the Know HOW of the company, technology, processes, information technology.
SELECTION CRITERIA:
Job creation
Amount of investment
Government stimuli
Support to other industries or companies
Availability of financing.
Level of quality and productivity
Degree of autonomy
Multiplying effect of the project.
Environmental impact.
3.4. DESCRIPTION OF THE PRODUCTION PROCESS
“Describe all the stages that make up the production process of each of the Products. "
GENERAL FLOWCHART OF THE PRODUCTIVE PROCESS
"Represent graphically (using symbols), the steps required to carry out the process to obtain the product."
Production Process:
“ Process is understood as the transformations that the productive apparatus created by the project will carry out to convert an adequate combination of inputs and raw materials into a certain amount of products. “
One way to describe and analyze the production process is through the use of process flow diagrams, whose symbols are as follows:
In the annex I highlight it.
MACHINERY EQUIPMENT AND EXISTING TOOLS
“Detail the machinery, equipment, tools, transport equipment, vehicles, etc. Necessary to carry out the objectives of the project.
Explain if the knowledge exists to operate, maintain and repair the machinery, equipment and tools mentioned in the project at a national level ”.
The tools, machinery and equipment are the tangible fixed assets that intervene in the production process with all the required information.
Detail the machinery, equipment, tools, transport equipment, etc. Necessary to carry out the objectives of the project.
Below are some model tables.
Existing machinery, equipment and tools.
Machines, Equipment Quantity Useful Life Present Value (Bs)
Sources: The company under study. (Mention it)
Machinery, Equipment and Tools to Acquire
Machines, Equipment Quantity Useful life Price (Bs) Origin
Sources: The Company.
DESCRIPTION OF THE NECESSARY FACILITIES
Requirement of the land, specifying the ownership of the land, size, access road value, suitability for the type of activity that will be carried out, problems that basic services (water, electricity, telephone, etc.) present. Description of the infrastructure and construction. Regarding the necessary facilities, indicate: characteristics, value, size, office location.
PHYSICAL DISTRIBUCTION
"Indicate the physical distribution of machinery and equipment within the plant, to establish the size and location of the industrial areas dedicated to reception of raw materials, product development, quality control, container and packaging, storage and intercommunication of the plant.
When designing a plant layout, it is recommended to verify that it complies with the following principles:
Global integration: Integral in the best way to men, machinery, auxiliary equipment. Etc.
Minimum distance to move: A distribution that manages to minimize movements between operations will always be better.
Flow: Try to arrange work areas in order to achieve an appropriate sequence of materials and equipment. Avoid delays.
Of space: Take into account the vertical and horizontal space.
Satisfaction and safety: A distribution that achieves safety and satisfaction for the worker will be better.
Flexibility: Design the layout to fit or rearrange at minimal cost.
TYPES OF DISTRIBUTION (Layout).
There are four types of distribution: fixed position, by process, by product and technology groups.
- Fixed position: man and equipment are brought to the place of production, for example: ship building, aircraft. Etc. By process: Several well-defined departments adapted for the production of a large number of similar products (foundries, sewing workshops, etc.). By product: Continuous production (in manufacturing or assembly line). At each step of the process, the product receives added value, for example: an automotive assembly line.Technological groups: Groups parts of common characteristics into families and designates them a production line capable of producing any part of this family.
FACTORS THAT DETERMINE THE LOCATION:
The factors that influence the greater or lesser profitability of a location and that should be taken into account in the selection of the project site are the following:
The proximity of the sources of the raw materials, and the consumer market, as well as the quality of accesses, due to their effect on the cost of transport and supply systems.
The availability of labor and the proximity of qualified labor markets to use the project's technology.
Soil topography, the cost of the land and its availability.
REQUIRED SUPPLIES
Raw material and other materials that will be used by product, in each stage of the production process, indicating: characteristics, quality, durability.
Requirement of inputs and prices
“Total annual requirement and the price of the inputs necessary to comply with the production program. "
RAW MATERIAL AND SUPPLIES:
Raw materials and input are those materials that directly influence the production process and are part of the final product.
The management of inventories as a quantity of products available for use or subsequent sales. Inventories could be classified into:
Raw Materials and purchased inputs: These are the inputs to the production process. This kind of inventory is necessary because it is impossible to get suppliers to supply us with what we need when we need it.
Product in process: Inventories of product in process are products that are no longer raw material, but cannot yet be considered finished products.
Finished Product: these are fully processed items that are ready to be shipped to the customer.
CONSUMPTION AND PRICE OF RAW MATERIAL PER UNIT OF PRODUCT:
Raw material Unit Price Origin
Source: Regional Fund of Guyana.
CONSUMPTION AND PRICE OF OTHER MATERIALS PER PRODUCT UNIT:
Raw material Unit Price Origin
Sources: FRG
SUPPLIES AVAILABILITY:
"Indicate if the inputs (raw materials and other materials) used in the production process are available at the desired times, that is, if there is immediate availability of them, if the case is contrary, it must be indicated that it affects their availability. ”.
Origin of Inputs
“The origin of the inputs must be indicated, that is, indicate if it is Regional, National or International. "
SUBSTITUTE SUPPLIES
"Indicate if there are inputs that can replace the original inputs, if productive, in the same way explain the destination that will be given to the waste generated."
BALANCE OF MATERIALS:
“Establish a balance of the amounts of inputs, products, by-products and waste for each product. To prepare these material balances we must know the technical coefficients of performance in the process, the percentage of by-products and the percentage of waste ”.
PERSONNEL REQUIREMENT AND COST
"Identify the labor required to achieve the objectives of the project, indicate the quantity, qualification, type of hiring, salary, benefits."
DIRECT LABOR:
It is the one that intervenes with its action in the manufacture of the products, either manually or by activating the machines that transform the raw material into a finished or finished product.
When estimating direct labor needs, we are basically interested in two things:
How many workers are needed?
What skill should they have?
INDIRECT LABOR:
It is one that intervenes by providing support to the manufacturing function of the products, either in supervision, inspection, maintenance, supply, transportation and other tasks.
Indirect labor includes personnel for:
Supervision
Packing and shipment
Maintenance
Warehouses (raw material, finished product)
Inspection
Production
control Quality control.
The number of people required for each of these areas will depend on the size and types of organization; but to determine it, the approximate workload necessary for each activity of the aforementioned man-hours per shift must be estimated.
ORGANIZATION
“According to the requirements of the workforce and the functions to be performed by it, the Organization of the Company must be structured, that is, the human resources available to manage the project. The administrative organization chart must be presented ”.
A unit made up of different parts dependent on each other, but each one with a special function ”.
A group of individuals united for a specific purpose: Social organism.
Organization ”is to order or arrange the functions (set of similar or similar activities) to achieve the objectives. Determining the authority and responsibility of the people in charge of carrying it out.
OBJECTIVES OF THE ORGANIZATION AREA:
The objectives of the area must be established in accordance with the objectives of the company itself and the rest of the areas that comprise it. To define the objectives of the company by functional area, the following are recommended:
Mission
Vision
General
Objectives Specific Objectives: Marketing, Production, Accounting, and Finance, and other areas.
Types of Organization:
Functional
Staff Organizational
structure.
CHAPTER IV: FINANCIAL STUDY
Once the project has been framed within its performance parameters, the Economic-Financial evaluation is carried out, the general objective of which
is to organize and systematize the information derived from the previous stages and prepare the tables that will serve as the basis for the evaluation of results. To achieve this, it is necessary to analyze the following points in detail. Investment
components
Total Investment
Depreciation and Amortization
Third Party Financing
Volume of occupation
Raw materials
Income
Manufacturing Expenses Income
Statement.
Components of the Investment:
Understand the relationship of fixed assets and other assets that will be part of the investment. They are subdivided into three groups: infrastructure and structure elements. Machinery and production equipment, studies and projects. Its reason for being is to show in detail the composition of its cost that will be transferred later.
Machinery and equipment encompasses all machinery and equipment destined for production lines. In case of being imported, this table must show all the composition of its costs from its place of origin to the plant.
TOTAL INVESTMENT: It must show the individual amount of the Fixed Assets, other Assets and working capital items. It must be subdivided into own contribution and third party contribution.
Working capital is the liquidity necessary to be able to cover the gap between the moment when the initial operating expenses of the company begin to be incurred and the moment when income begins to be received.
FINANCIAL STUDY
TOTAL CAPITAL NEEDS:
Indicate the needs for monetary resources necessary for the development and start-up of the project, comprising tangible and intangible fixed assets and working capital.
TANGIBLE FIXED ASSETS: Assets represent the assets and property rights of the company.
“It is made up of goods with all the characteristics previously noted by fixed assets, and which are connoted by having materiality, that is, they have a physical presence, which can be appreciated with the senses. Within this group we have the Land, buildings, machinery. Etc.
INTANGIBLE FIXED ASSETS:
They are represented by rights of a legal or economic nature, the main characteristics of which are their immateriality, that is, they lack physical presence, which implies that their existence cannot be appreciated with the senses.
Within this group we have the capital gain or goodwill, the patent, law firms, project studies. Etc.
WORKING CAPITAL
WORKING CAPITAL: Indicate the destination of the working capital and for how long it is estimated and why.
CONCEPT AMOUNT (BS) TIME PERCENTAGE
MATERIAL Premium
Other materials
Labor
Gto Operation
TOTAL
Sources:
NET WORKING CAPITAL IS THE DIFFERENCE BETWEEN CURRENT ASSETS AND CURRENT LIABILITIES.
We can say that it is the minimum that is required to put the company into operation. Or the business.
Indicate how the investment will be made, the promoter's own contribution and the requested credit. In some Organisms the contribution is one (30%) of the promoter, against (70%) to the requested organism. Specifically, the Guayana Regional Fund.
DEPRECIATION AND AMORTIZATION:
The investment made is recovered through depreciation applied to fixed assets and amortization applied to other assets, or intangible assets. The working capital is not subject to depreciation or amortization due to its nature as a transferable liquid asset throughout the years of operation of the project and, consequently, recoverable at its closure.
The number of years applicable to depreciation is directly related to the useful life of the fixed asset and it is assumed that, once this has ended, the employer has recovered its full value to replace the fixed asset with a similar one. The number of years applicable to amortization is related to the total value of the intangible asset, being broader as its value is greater. Its duration is calculated until the end of the useful life of the asset.
The Table contains the individual value of the assets, the number of depreciation and amortization periods applied to each item. And the amount of your annual fees. The depreciation method is for the straight line.
The Assets of the company are punished, plus the new ones to be acquired.
Sources of Financing
Indicate if you present the indebtedness with any financial entity and its current situation, in the same way indicate the financial entity from which you request the current loan.
Financing:
These tables must clearly indicate the parameters and calculation conditions, such as:
Credit amount
Nominal annual interest
rate Effective interest rate per payment period
Credit commission
Dead, grace period, and loan amortization
Amount of amortization payments.
Period of validity, of construction.
Due to the marked difference between the Government entities, which finance, these must be done following the instructions where it will be financed. And the financing modality.
VOLUME OF OCCUPATION
The table highlights the distribution of the volume of labor in terms of the number of people and the value of the payroll by categories of employees and by condition of fixed and variable. The scope of social benefits and any other benefits should also be discussed.
RAW MATERIALS (OR SUPPLIES)
As this calculation is directly related to the installed and used capacities of the company, it must be copied in the one previously made in the technical study. This data will be used to calculate the raw material and for the evaluator to keep it in mind as a reference element.
BIBLIOGRAPHY
1. ARTHUR S. PENNANCE, “DICTIONARY OF ECONOMY, Second Edition, Editorial Oikos-Tau, printed in Barcelona _ Spain.
2. BACA URBINA GABRIEL, "Project Evaluation", Third Edition, Editorial MCGRAW-HILL, printed in Colombia.
3.BLANCO R. ADOLFO, "PROJECT FORMULATION AND EVALUATION" First Edition, Editorial Tropykos, printed in Venezuela.
4.FUNDES DE VENEZUELA. Business training.
5. GUIDE B: VENEZUELAN CORPORATION OF GUAYANA.
6.SAPAG C. NASSIR, SAPAG C. REINALDO “PREPARATION AND EVALUATION OF PROJECTS”, SECOND EDITION, MC-GRAW-HILL EDITORIAL, printed in Colombia.
7. TECNOPARQUE DE VENEZUELA. TRAINING OF ENTREPRENEURS.
8. INCE: FORMULATION OF AN INVESTMENT PROJECT MODULES 1 AND 2. PUERTO ORDAZ- MAY 2003.
8. LATOUCHE MARFA OLIVO - MALDONADO RICARDO G. CONTABIOLIDAD GENERAL. EDITORIAL LIMUSA. YEAR 1990.
9. FINANCE: NORMA COLOMBIA EDITORIAL GROUP.
GLOSSARY OF TERMS
ASSET: Everything that has monetary and property value of a company or individual.
COST BENEFIT ANALYSIS: Comparison of the marginal benefits of a project or program with its marginal costs to decide whether or not to dedicate resources to that project or program and in what amount.
SENSITIVITY ANALYSIS: Analysis of the effect that percentage changes in sales, costs, and other variables exert on the profitability of an investment project.
APPRECIATION: Increase in the value of a currency expressed in the amount of currency that can be bought with it.
TARIFF: Tax on goods produced abroad and sold in the country.
INVESTMENT APPRAISAL: Analysis of the probable costs and benefits of possible new investments and the evaluation of the advisability of committing resources for this purpose.
APPRAISAL: Action and effect of valuing; that is, to fix the estimate of a thing in the currency of the country or that indicated in the business in question, appraisal; fair price.
BENEFIT: Total revenue minus total costs
SUSTAINING CAPACITY: Volume or quantity that a livestock (live animal) can consume in terms of food according to the space, type and condition of the food supplied.
PROFITABILITY COEFFICIENT: Relationship between the profit obtained and the resources used or income from the invested capital.
GUARANTEE COEFFICIENT: Proportion that represents the credit granted over the estimated amount of the guarantee granted.
Adequate proportion between own and other resources. It reflects the proportion of the capital sum disbursed plus reserves in relation to the totality of the foreign deposits.
INVESTMENT COEFFICIENT: Proportion that represents the investment made over the total liability.
CONSUMPTION Current effective demand that is equivalent to the total volume of transactions of a product or service at a given price, within a given area, at a given time.
OPPORTUNITY COST: Amount of other products that must be lost or sacrificed to obtain a unit of product.
PRODUCTION COST: Expenses caused by the payment of interests, salaries, amortizations, raw materials and all those concepts that directly affect the production of an article.
ECONOMIC COST: Payment that must be made to obtain and maintain the services of a resource; income that a company must provide to the supplier of a resource to attract the resource from an alternative use; equal to the amount of other products that cannot be obtained when resources are dedicated to a particular product.
FIXED COST: Any cost whose total does not change when the company modifies its production level; cost of fixed resources.
VARIABLE COST: Cost whose total increases when the company increases and decreases when the level of production decreases.
BRIDGE CREDIT: It is the one that is granted while a higher amount is processed or managed.
POTENTIAL DEMAND Probable volume that the real demand would reach due to the normal increase in the future or if certain environmental conditions that limit it were modified.
DEMAND: Need or desire to acquire a good or service together with the possibility of acquiring it.
SUPPLY PRICE ELASTICDAD: Measure of the degree to which the quantity supplied of a good responds to a variation in its price; is calculated by dividing the percentage change in quantity supplied by the percentage change in price
PRICE ELASTICITY OF DEMAND: Measure of the degree to which the quantity demanded of a good responds to a variation in its price; It is calculated by dividing the percentage change in the quantity demanded by the percentage change in price.
ELASTICITY: Relative variation experienced by a function or dependent variable caused by the relative variation of a factor.
EVALUATION: It constitutes a balance of advantages and disadvantages of assigning to the analyzed project the necessary resources for its realization.
SECURITY GUARANTEE: Guarantee contract by which the debtor, or a third party for him, delivers to the creditor for security of his credit, the effective possession of a personal property, which must be restored when the obligation is extinguished.
COMPOUND INTEREST: It results when, at the end of each period, the interests are joined to the capital to produce, in turn, new interests.
DIRECT LABOR It consists of the wages paid for the work performed and that can be charged directly to it. It can also be considered as a variable cost.
INDIRECT LABOR: Represents the auxiliary work done in relation to the manufacture of the product. It is a job that is not used to change the shape of the product, but that performs essential processes.
PACKAGING MATERIAL: They are those materials that are part of the product without undergoing manufacturing.
RAW MATERIALS: These are those materials that directly influence the production process.
CAPTIVE MARKET It is the quantity of goods and services that are placed at a specific price in a specific place, under the established conditions of demand and supply.
MARKET: Site of convergence of the supply and demand of products, in which a single price is established.
SUPPLY: Quantity of a good that producers are willing to bring to the market in accordance with the prices it can reach and taking into account its real production capacity.
CAPITALIZATION PERIOD: It is the time after which the interests are added to the capital.
PIGNORATION: Contract in which a debtor or a third party, gives the creditor a movable thing (harvest, machinery or equipment, livestock, etc.) in security of the credit, which must be restored when the obligation is extinguished.
OLIOPOLIO: Facility offered by an industry to enter its market.
ACTIVE POPULATION: Total number of workers, including both the employed and the unemployed.
CIF PRICE: (Cost, insurance, freinght, that is, “cost, insurance and freight”) name given to the goods payment system when insurance and freight costs are included in the case of chartered goods.
CONSTANT PRICE: It is the monetary value of an asset in a given period, calculated using the prices of a fixed base year.
CURRENT PRICE: It is the value of the merchandise measured in monetary units, at a certain moment.
FOB PRICE: (free on board, that is, places on board), name given to the payment system for goods chartered to / or from other countries, when the amount paid covers only the value of the goods and excludes insurance and freight.
SHADOW PRICE: It is the price artificially established on the basis of adjustments that are made when socially valuing a project, converting the market prices that are used into social prices. The distribution suffered by market prices is explained by the impositions and acts of power exercised by the suppliers, the State and sometimes the demanders, in the functioning of the specific markets.
PRICE: Exchange value of the goods and services established between the buyer and the seller.
PROJECT: It is the prospective and chronological plan of a unit of action capable of materializing some aspect of economic or social development.
POINT OF BALANCE: It is the volume or level of operations for which the total income is equal to the total costs, representing a particular situation for decision making.
COMPANY NAME: It is the name under which the company is projected to register and with which it will carry out its commercial transactions.
PROFITABILITY: It is the relationship between the net returns obtained from the investment and the invested capital, expressed as a percentage.
SALARIES: Basic payment made to workers; stipend or remuneration in money, kind or other benefit that a person receives in exchange for the performance of a service or work performed on behalf and subordination of another.
SALARIES: Basic pay of employees; remuneration received by certain workers who are not employers in the strict sense, that is to say, who in no case assume the risks of the company.
ACTIVE RATE: It is the interest rate charged by financial institutions for carrying out their active operations (short, medium and long-term loans, loans, etc.)
DISCOUNT RATE: Rate used to calculate the present value of the net flows of a future investment.
INTEREST RATE: It is the price paid for the use of loanable funds, that is, the cost or price of money.
INTERNAL RATE OF RETURN: It is defined as that interest rate that makes a flow of income equivalent to a flow of costs. In other words, that interest rate that makes the present value of income less costs equal to zero. It is said that the IRR is one in which the Net Present Value (NPV) is equal to zero, that is, where the net income and investment costs are equal to their updated values.
It is the interest rate, which when used to reduce the cash flows associated with a project to find the net present value (NPV), provides a measure of the Rate of Return on the project investment, since it determines the viability of the project. same. This internal rate will have to be higher than the benefits of the opportunity cost of the plan and of any market rate, including the inflation rate, for it to be profitable in economic terms.
FINANCIAL STUDY
It allows projecting the company knowing its background, its Financial Statements,
its ability to generate funds, and based on these variables, project it into the future. It is important to note that this part of simulating, projecting, is managing an optimistic scenario for the company.
For this purpose Antonio Frances IESA "
It is NOT possible to know the future; but if to delineate options of the evolution of the environment, according to the key behavior.
Scenario building has become a popular technique for outlining the future.
"HOW DID THIS TECHNIQUE ARISE? What does it consist of? How can it be applied in the current situation in Venezuela.
It is not possible to determine what the exchange, inflation or interest rates will be in five years, but estimating them with some approximation is essential to forecast the profitability of an investment ". (ANTONIO FRANCES REVISTA IESA 1993).
"As a Project on what basis, and what point do I take in reference, first of all I observe the historical behavior of the company, this data is given to me by the Financial Statements of the company", its added value (intangible assets of this) as clients, quality of the service or product, the years it has been in operation, the customers, the quality, if it is a competitive product or if it is innovating technology, import substitution, benefits and strengths of the product or service.
And the Macroeconomic variables such as the exchange rate, inflation, the dollar / bolivar exchange, the country's situation.
These variables are projected, for example, the capacity of the company that will depend on technology, labor, whether the company will acquire new equipment, will increase production, will improve the shed, will improve the infrastructure of the company and therefore will increase its production.
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