A feasibility study is an evaluation and analysis of the potential of the proposed project which is based on extensive investigation and research to give full comfort to the decisions makers. A feasibility study is essentially a process for determining the viability of a proposed initiative or service and providing a framework and direction for its development and delivery. It is a process for making sound decisions and setting direction. It is also a process which:
* is driven by research and analysis
* usually involves some form of consultation with stakeholders, community, users, etc. * focuses on analyzing, clarifying and resolving key issues and areas of concern or uncertainty * very often involves basic modeling and testing of alternative concepts and approaches
There is no universal format for a feasibility study. Feasibility studies can be adapted and shaped to meet the specific needs of any given situation.
By Lahle Wolfe: “A feasibility study looks at the viability of an idea with an emphasis on identifying potential problems and attempts to answer one main question: Will the idea work and should you proceed with it?” “Feasibility Study is basically a study that is done to judge the viability of a new business venture. It is actually a preliminary analysis of a project that lets the people know that whether to proceed with a project or not.”
Who undertakes such studies?
* Project Manager: The Project Manager will take the lead in conducting the Feasibility Study, organizing the site visit and completing the Feasibility Study Report.
* Feasibility Study Team: The Project Manager will form a Feasibility Study team to: * provide the required skills and knowledge (i.e. knowledge of the technical details of the project, familiarity with the local environment, an understanding of the local community and culture) and, * take part in the site visit.
* Stakeholders: Stakeholder consultation will continue to play a major part of the project, particularly during the site visit. Engage closely with the local communities as they will be an invaluable source of information for the Feasibility Study.
* Independent Technical Advisor: An independent technical advisor will be used to provide technical advice and to review the Feasibility Study Report.
Features of feasibility study:
* Very articulate
* High Systematic
* Strategic in nature
* Cost effective
* Value Adding
Objective of feasibility study:
* To know the viability of the Project.
* To evaluate the profitability of a new business.
* To evaluate the benefits to be gained in the expansion of a business. * To evaluate the financial impact for changes in business location. * To evaluate the benefit from new methods of production, technology or machinery. * To evaluate changes in an organization
* To evaluate benefits from business merger or business acquisition * To know the market trends.
* To reduce the cost of project.
* To test the profitability of the project.
* To identify the likelihood of one or more solutions meeting the stated business requirements. * To find the outcome of the feasibility study is a confirmed solution for implementation.
When is Feasibility Study needed?
The following are more specific circumstances that may prompt the need for a feasibility study:
* Significant capital investment is required
* Significant City funding or public fund raising is required * Significant commitment or exclusivity of City land or building floor space and time is required. * There is no clear champion
* Financial viability is in question (costs compared with anticipated revenues) * Community needs require further analysis and validation * There is potential to reach a large market segment or affect a large number of people * Accessibility to...