A feasibility study is the analysis of a problem to determine if it can be solved effectively or we can say its an analysis and evaluation of a proposed project.It takes into account:
• operational (will it work?),
• economical (costs and benefits)
• technical (can it be built?)
Results of the study determine whether the solution should be implemented.
1:Operational and Behavioural feasibility:
This is the study of how well the solution of problems or aspecific solution will work in a system,organisation and also how people feel about the solution.This tells whether the system be used if it is incremented / or will there be resistance from users.This is necessary because equipments do not cry but people cry..
(i) Identify the alternatives.
(ii) determine costs and expected savings of each of the alternates.
(a) One time cost
(b) Recurring Cost.
One time cost may include :
(I) Feasibilty study cost
(II) Cost for converting from present to a new system
(III) Construction of complete room/ facilty.
(IV) Cost involved in software packages.
Recurring cost may include:
(I) Rental or purchase of equipments..
(II) Salaries of Perrsonels.
(IV) Equipment Maintenance
(V) Return on Investment analysis.
ROI=(Net Earnings/Total Investment)
Economic feasibility is the most frequently used method for evaluating the effectiveness of the candidate system that is proposed system, more commonly used as cost/benefit analysis. The procedure is to determine the benefit and savings that are expected from the candidate system and compare them with the coast, if the benefit over weight cost then the decision is made to design and implement the system, other wise further justification in the proposed system will have it be made, if it has chance to improve. Cost estimate for a... [continues]
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