Pfs Format 2

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FORMAT FOR PROJECT FEASIBILITY STUDY

Acknowledgement
List of Tables
List of Figures
Appendices

Chapter
Summary of Project

Name of the Project
Briefly explain the reason for such choice name

Location
Pinpoint the location of the head office and the plant site (if applicable) and give the main reasons for choosing them. (note: the project must choose a location where maximum efficiency can be attained at the lowest possible cost. (Note: The factors which affect the choice of location are the following: sources of raw materials, labor, and utilities

proximity to the market
nature of available transportation, and
cost of land and building)

Descriptive definition of the project

Project potential and proponents
Give a conceptual description of the project’s potential worth and importance and the men behind it.

Project’s long range objectives
What does the project expect to achieve in 10 years in terms of size, capacity, volume, worth, role in its industry and in the economy?

Feasibility Criteria
What were the most important guidelines used to judge the feasibility of the project? Market feasibility
Technical Feasibility
Financial Feasibility
Socio-economic feasibility
Organization and Management Feasibility

Highlights of the Project
History (how did the project come about?)
Nature of the industry
Briefly describe the industry, its product lines, the demand-supply situation, history, growth patterns, problems and potentials, and role in the economy)

Mode of financing
Briefly discuss the sources of funds, the financing terms, and the reason for choosing such sources and terms.

Investment costs
How much funds are necessary to make the project operational? How are the funds allocated?

Major assumptions and summary of findings and conclusion.
Market feasibility
Briefly discuss the nature of the unsatisfied demand which the project seeks to meet, its growth and the manner in which it is to be met. Briefly discuss the supply-demand situation, target market analyzed, and the marketing program formulated.

Technical feasibility
A. Briefly discuss the following:
- product line
- technology necessary for production and its availability
- the proper mix of production resources
- optimum production volume

Financial feasibility
Present the overall financial picture in terms of operating cash requirements, profitability and cash flow

Socio-economic feasibility
Briefly discuss the effect of the project on society and the economy as a whole. Is it generally beneficial to the people? Is it in line with the economy’s development program?

Management feasibility
Briefly discuss the management structure.
Is it appropriate for the managerial needs of the project?

Market Study
Product description
Name of the product – popular and scientific (if applicable) and the reasons for choosing it. Properties of the product – physical, chemical.
Geographical areas of dispersion

Market Description
Who are the major consumers of the product?
Geographical areas of dispersion
Means of transportation
(Note: segment the market according to type, manner of use, income classification, and location depending on the type of product being considered.) Who are the potential buyers of the product

Demand
Consumption for the past 5 years
Projected consumption for the next 5 years (indicate the method used and factors considered in preparing the projection)

Supply
Major producers of the product? (Classify them according to size, product quality, location, performance, and market segment performance. Supply for the past 5 years
Projected supply for the next five years (indicate the method used and factors considered in preparing the projection)

Demand-Supply Analysis
Compare the demand and supply trends

Price Study
Determine the selling price of all similar and substitute products Look into the history of these prices (including the range of fluctuations)...
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