Feasibility Analysins Of The Project Of Shifang Cigarette Factory

For the sustained and healthy development of tobacco factories,large-scale industry technology upgrade will be made every ten to fifteen years from equipment upgrades,process optimization to operation mode adjustment,etc.It is a significant investment decision-making for the survival and future development of China tobacco Sichuan industrial CO.,LTD,Shifang tobacco factory to speed up the plant relocation project during the 13 th five-year plan,to fully improve the manufacturing capability and to enhance the core competitiveness of enterprise.In general,the plant relocation project of State-owned enterprises is a complicated project for its large investment,long construction period,multi-sites and numerous participants.At the same time,it is greatly influenced by politics,economy,policy,Macro Situation and external environment.Consequently,a lot of problems and risks may occur.On the other hand,based on the features of tobacco factories,the feasibility study usually was simple and formal.The emphasis was put on advancement of production technology and equipment.The economic analysis and dynamic evaluation were rough.Some parameter setting is very subjective and blind so that the status of the project can't be truly reflected.Some subprojects were left unused for rush built or need additional investment for insufficient budget estimation.In the end the benefit of the project wouldn't meet our expectation although there was a lot of resource input.In this paper,combining project management theory with practice,it has dynamically predicted and analyzed the KPI like NPV,IRR,sensitivity,breakeven point based on the scale and necessity,production technology of Shifang tobacco factory relocation project,especially emphasized on the new situation and demands of tobacco industry.From the angles of technology and finance,we compare and analyze the two different schemes in the process of project decision-making,in order to make more suggestion for High-level decision-making for reducing the waste and risks.In the mean time,according to the research of this project we can establish a more all-round and practical feasibility analysis frame,simultaneously,provide reference to other decision-making and project construction of factory.