Question

How many variables are used for technical capability?

• A. 2
• B. 3
• C. 4
• D. 5

Hint:

To remember the variables for technical analysis, think of a factory: What goes in? ({Inputs}), How does it get made? ({Process/Technology}), What comes out? ({Output/Product}).

Answer 1

The Correct Option is B

Step 1: Understanding the Question:
The question asks about the number of key variables or components that are typically considered when assessing the 'technical capability' or 'technical feasibility' of a project.
Step 2: Key Concept:
Technical capability or feasibility analysis is a crucial part of project appraisal. It assesses whether the technical aspects of a proposed project are viable. This involves evaluating the inputs, the conversion process, and the outputs.
Step 3: Detailed Explanation:
The assessment of technical capability generally revolves around three core variables:
1. Material Inputs and Utilities: Assessing the availability, quality, and cost of the raw materials, power, water, and other utilities required for production.
2. Technology and Production Process: Evaluating the suitability of the chosen technology, the efficiency of the production process, the type of machinery and equipment needed, and whether the required technical know-how is available.
3. Product Mix and Capacity: Determining the range of products to be produced (the product mix), the planned production capacity of the plant, and whether this capacity is technically and economically viable.
These three broad areas—Inputs, Process, and Output—form the fundamental variables for analyzing technical capability. While more detailed sub-variables exist, these three represent the main pillars of the analysis. Therefore, 3 is the most appropriate answer.
Step 4: Final Answer
Typically, the assessment of technical capability involves the analysis of three main variables: material inputs, production technology, and product mix/capacity.