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Feasibility Study Outline for New Manufacturing Project

There is a saying, hindsight is 20-20. Smart business people, however, do not rely on hindsight but on foresight. A feasibility study is more of a scientific foresight, a way of reducing guessing as to what things should be considered. The following is an outline of a feasibility study based on new manufacturing business. There are hundreds of variations of a feasibility study but this is good because it is applicable to big and small businesses, either domestic and international.

Feasibility Study Outline for New Manufacturing Project

A. Project Summary

1. Brief description of the project
2. Summary of the findings and conclusions
a. Project timetables and status
b. Management aspects
c. Marketing aspects
d. Technical aspects
e. Taxation aspects
f. Financing aspects
g. Financial aspects
h. Social aspects

B. Project Timetable and Status

1. General project planning
2. Incorporation
3. Preparation of engineering specifications
4. Building construction
5. Selection of machinery supplier
6. Arrival of machinery
7. Installation of machinery
8. Trial run
9. Start of normal production
10. Start of selling operations

C. Management Aspects

1. Management during the pre-operating period
a. Project originators
b. Project promoters; managers
c. Firms or persons involved or to be involved in marketing,
engineering and other studies
d. Management during construction period

2. Management during the operating period
a. Type of business organization (partnership, corporation) and
reason for the choice
b. Internal organization
1) Statement of functions of each unit
2) Organization chart
c. Owners - citizenship of owners, and percentage of their
respective holdings
d. Management personnel (from the members of the board of
directors to the department or section managers)
1) Duties and time to be devoted to project
2) Requirements
3) Recruitment
4) Compensation
5) Staffing - qualifications, education, history
e. Labor
1) Skills required
2) Number required for each skill
3) Sources of labor force for each type of skill
4) Recruitment program
5) Labor trainig program
6) Compensation
a) prevailing rates
b) Legal rates
c) Rates intended for the project - starting rates and
provisions for annual increases
7) Facilities for laborers (housing, transportations, medical
and dental care, recreation and other fringe benefits)
8) Effect of labor laws on the above items
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