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FEASIBILITY STUDY
What is Feasibility Study?
A feasibility study is an assessment of the practicality of a proposed plan or project.
A feasibility study analyses the viability of a project to determine whether the project
or venture is likely to succeed.
The study is also designed to identify potential issues and problems that could arise
from pursuing the project.
Economic, technical, legal, and scheduling factors considered in a F.S to ascertain the
likelihood of completing the project successfully.
A project’s feasibility depends on the project's cost and return on investment, which
might include revenue from consumers.
A company may conduct a feasibility study to consider launching a new business or
adopting a new product line.
A contingency plan to be developed to deal with unforeseeable circumstances in
future
A feasibility analysis is used to determine the viability of an idea, such as ensuring a project
is legally and technically feasible as well as economically justifiable. It tells us whether a
project is worth the investmentin some cases, a project may not be doable. There can be
many reasons for this, including requiring too many resources, which not only prevents those
resources from performing other tasks but also may cost more than an organization would
earn back by taking on a project that isn’t profitable.
A well-designed study should offer a historical background of the business or project, such as
a description of the product or service, accounting statements, details of operations and
management, marketing research and policies, financial data, legal requirements, and tax
obligations. Generally, such studies precede technical development and project
implementation.
INVESTOPEDIA’s VIDEO ON FEASIBILITY STUDY
https://www.investopedia.com/terms/f/feasibility-study.asp
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FEASIBILITY STUDY
SIGNIFICANCE OF FEASIBILITY STUDY
Discover new opportunities
Provides valuable information for a “go/no-go” decision
Improves project teams’ focus
Narrows the business alternatives
Identifies a compelling reason for pursuing the project
It gives the project manager & stakeholders a clear picture of the proposed project
uncover new ideas that could completely change a project’s scope
Aids decision-making on the project
Enhances the success rate by evaluating multiple parameters
Determines why it's not a good idea to go ahead.
TYPES OF FEASIBILITY STUDY
1. Technical Feasibility
This assessment focuses on the technical resources available to the organization. It helps
organizations determine whether the technical resources meet capacity and whether the
technical team is capable of converting the ideas into working systems. Technical feasibility
also involves the evaluation of the hardware, software, and other technical requirements of
the proposed system. As an exaggerated example, an organization wouldn’t want to try to put
Star Trek’s transporters in their building—currently, this project is not technically feasible.
2. Economic Feasibility
This assessment typically involves a cost/ benefits analysis of the project, helping
organizations determine the viability, cost, and benefits associated with a project before
financial resources are allocated. It also serves as an independent project assessment and
enhances project credibilityhelping decision-makers determine the positive economic
benefits to the organization that the proposed project will provide.
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FEASIBILITY STUDY
3. Legal Feasibility
This assessment investigates whether any aspect of the proposed project conflicts with legal
requirements like zoning laws, data protection acts or social media laws. Let’s say an
organization wants to construct a new office building in a specific location. A feasibility
study might reveal the organization’s ideal location isn’t zoned for that type of business. That
organization has just saved considerable time and effort by learning that their project was not
feasible right from the beginning.
4. Operational Feasibility
This assessment involves undertaking a study to analyze and determine whetherand how
well—the organization’s needs can be met by completing the project. Operational feasibility
studies also examine how a project plan satisfies the requirements identified in the
requirements analysis phase of system development.
5. Scheduling Feasibility
This assessment is the most important for project success; after all, a project will fail if not
completed on time. In scheduling feasibility, an organization estimates how much time the
project will take to complete.
When these areas have all been examined, the feasibility analysis helps identify any
constraints the proposed project may face, including:
Internal Project Constraints: Technical, Technology, Budget, Resource, etc.
Internal Corporate Constraints: Financial, Marketing, Export, etc.
External Constraints: Logistics, Environment, Laws, and Regulations, etc.

Unformatted Attachment Preview

FEASIBILITY STUDY  What is Feasibility Study?  A feasibility study is an assessment of the practicality of a proposed plan or project.  A feasibility study analyses the viability of a project to determine whether the project or venture is likely to succeed.  The study is also designed to identify potential issues and problems that could arise from pursuing the project.  Economic, technical, legal, and scheduling factors considered in a F.S to ascertain the likelihood of completing the project successfully. ❖ A project’s feasibility depends on the project's cost and return on investment, which might include revenue from consumers. ❖ A company may conduct a feasibility study to consider launching a new business or adopting a new product line. ❖ A contingency plan to be developed to deal with unforeseeable circumstances in future A feasibility analysis is used to determine the viability of an idea, such as ensuring a project is legally and technically feasible as well as economically justifiable. It tells us whether a project is worth the investment—in some cases, a project may not be doable. There can be many reasons for this, including requiring too many resources, which not only prevents those resources from performing other tasks but also may cost more than an organization would earn back by taking on a project that isn’t profitable. A well-designed study should offer a historical background of the business or project, such as a description of the product or service, accounting statements, details of operations and management, marketing research and policies, financial data, legal requirements, and tax obligations. Generally, such studies precede technical development and project implementation. ❖ INVESTOPEDIA’s VIDEO ON FEASIBILITY STUDY ❖ https://www.investopedia.com/terms/f/feasibility-study.asp FEASIBILITY STUDY SIGNIFICANCE OF FEASIBILITY STUDY  Discover new opportunities  Provides valuable information for a “go/no-go” decision  Improves project teams’ focus  Narrows the business alternatives  Identifies a compelling reason for pursuing the project  It gives the project manager & stakeholders a clear picture of the proposed project  uncover new ideas that could completely change a project’s scope  Aids decision-making on the project  Enhances the success rate by evaluating multiple parameters  Determines why it's not a good idea to go ahead. TYPES OF FEASIBILITY STUDY 1. Technical Feasibility This assessment focuses on the technical resources available to the organization. It helps organizations determine whether the technical resources meet capacity and whether the technical team is capable of converting the ideas into working systems. Technical feasibility also involves the evaluation of the hardware, software, and other technical requirements of the proposed system. As an exaggerated example, an organization wouldn’t want to try to put Star Trek’s transporters in their building—currently, this project is not technically feasible. 2. Economic Feasibility This assessment typically involves a cost/ benefits analysis of the project, helping organizations determine the viability, cost, and benefits associated with a project before financial resources are allocated. It also serves as an independent project assessment and enhances project credibility—helping decision-makers determine the positive economic benefits to the organization that the proposed project will provide. FEASIBILITY STUDY 3. Legal Feasibility This assessment investigates whether any aspect of the proposed project conflicts with legal requirements like zoning laws, data protection acts or social media laws. Let’s say an organization wants to construct a new office building in a specific location. A feasibility study might reveal the organization’s ideal location isn’t zoned for that type of business. That organization has just saved considerable time and effort by learning that their project was not feasible right from the beginning. 4. Operational Feasibility This assessment involves undertaking a study to analyze and determine whether—and how well—the organization’s needs can be met by completing the project. Operational feasibility studies also examine how a project plan satisfies the requirements identified in the requirements analysis phase of system development. 5. Scheduling Feasibility This assessment is the most important for project success; after all, a project will fail if not completed on time. In scheduling feasibility, an organization estimates how much time the project will take to complete. When these areas have all been examined, the feasibility analysis helps identify any constraints the proposed project may face, including: • Internal Project Constraints: Technical, Technology, Budget, Resource, etc. • Internal Corporate Constraints: Financial, Marketing, Export, etc. • External Constraints: Logistics, Environment, Laws, and Regulations, etc. Name: Description: ...
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