Project Feasibility Study Samples

Written by: Jean Scheid Edited by: Ronda Roberts Updated Sep 20, 2011 Related Guides: Project Managers Some projects require feasibility concept studies before moving forward in a project and to find out if it is deemed feasible, profitable, and doable. What are the ingredients of feasibility studies? Heres a look what you need to know about them with free feasibility study samples to guide you.

What Is a Feasibility Study?

Simply put, a feasibility study in project management is used to find out if a project is feasible prior to investing real resources and dollars. Often, project managers are hired to complete studies for clients to determine if a proposed venture will be profitable as well as what risks it will take. The feasibility process is completed prior to project initiation or often, can be utilized to see if a set of processes or procedures will enhance or harm project outcomes.

Feasibility Study Steps

Whether you are working for a client to see if a business, product, or process is feasible or if you need to know if a project is feasible, follow these steps. In our Media Galley you will find an example of a feasibility study for a client and a feasibility study template you can use to assist you.
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Project Description Identify the project name and purpose. Include details including stakeholders, and end result expected. Goals List long and short-term goals and what processes will be needed to achieve those goals. Timeline What will be the estimated time until project completion? Costs and Budgeting Include all costs incurred for the project including the cost of the feasibility study itself. Purpose What purpose does the project have and whom will it benefit?

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Market Analysis If applicable, will the market or market environment benefit from the project. If so, list why. Resources Identify all the resources both IT, technical, inventory, and human that will be needed to complete the project. Project Process How will the project flow? Include flow charts showing project stages. Management and Teams Who will manage and who will work on scheduled tasks? Will project management outsourcing be needed? Observations Statements that do or dont support the project should be included here. If for a client, does the client have the finances to complete the project or are there alternatives? If for a project or process, will it work and will it be beneficial?

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Outcomes of a Feasibility Study

Often, after the completion of a study, a determination may be made not to proceed with the project. A good feasibility study sample will include:
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Project Problems Does the study include risk or problematic areas that need to be addressed and are they clearly identified? The Outcome Ever study should identify the process, product, client request, and goal and how they will affect the outcome; positively or negatively. Will outcomes be beneficial or deterrent? Alternatives Are possible alternatives available or suggested and researched? Assessment The assessment part of your feasibility study should include risk management and controls, solutions, if the project is feasible, and how the project should be implemented.

Summing Up Feasibility Studies

For projects to be considered, especially if they are to undertake many resources including real dollars, real time, and real effort, a feasibility study is essential prior to project initiation, project scope, and initiation.
See the complete Bright Hub Guide to Project Initiation Process

If a project appears overwhelming or requires much detail and analysis to get to even begin the project, consider completing a feasibility study prior to the project and use the feasibility study samples found in our Media Gallery. If you're looking for more sample forms and downloadable templates, check out Bright Hub's resource guide: Over 50 Free Project Management Templates and Sample Form

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Archive for the Sample Feasibility Study Category.

A Project Feasibility Study on the Manufacture of an Ergonomically Designed School Backpack

March 1, 2011, 8:33 am Proposed Location: Paniqui Productivity Center, McArthur Highway, Samput, Paniqui, Tarlac Proponents: Russel D. Garcia, Kathleen E. Gonzales, Lara Joy T. Martinez, Jonelyn F. Mendoza, Emmaloida H. Tabag Degree: Bachelor of Science in Industrial Engineering School: College of Engineering, Tarlac State University Date: March 2003 Brief Description of the Project The project proposes to manufacture an ergonomically designed school backpack, branded as Pack Em All It is a backpack aimed at helping elementary students to correct posture and reduce stress on back and shoulder while carrying loaded backpack. The bag has properties unique from other bag presently available. The aluminum places at the back portion of the bag but it is not visibly seen and will serve as the back support. The aluminum is contoured to fit the shape of the back. This will trigger the back straightening of the user. This will prevent the user from slouching and eventually develop a good posture. It has a wider sling to have a greater support. It has a waist support to sustain the lower part of the torso. It has more space inside to cater to students who bring lots of school materials. The bag is ergonomically designed for the ease and comfort to prevent backaches, shoulder pain and abnormal curve of the spine, thus creating a good relationship between the bag and the user. Summary of the Findings A. Management Aspect

The product shall be pre-operated eight (8) months before the start of the operation. Partnership shall be the type of business organization, and shall be composed of five (5) partners. The organizational set up shall be in a line function. The business shall have an initial capital of Php 625,000 and Php350,000. The business shall be loaned from DBP.

The General Manager shall be the head of the organization. Under him is the Plant Manager who shall be responsible on the production area, and has the overall control on the company personnel, marketing of the product and even the allocation of budget for the company. Along with him is a Secretary. Under the Plant Supervisor is the Human Resource Personnel; under him are the Utility Man/Driver, Security Guard, and Janitor/Messenger. Next is the Quality Control, under him is the Sewer, Machine Operator, Packager and Stockman. Next is the Marketing and Sales Personnel, under him is the Purchaser Finally, the Finance Personnel, next to him is the Accountant, who shall be classified as retainer, because he shall render service only once every end of the month. The required personnel shall come from nearby places of the plant and within Tarlac. As soon as the business normally operates, all benefits are to be given to all employees. The company shall hire additional workers after six (6) years of operation, based on the forecasted increase of plant capacity. They are to be paid at a minimum starting salary and shall also increase to 10% annually. B. Marketing Aspect

The proposed product is based on the idea that elementary students have a hard time in carrying their things from school and that in the latter of their lives, they may experience back disorders if not properly taught. The demand of the supply shall be based the total number of students from Grade IV-VI, and the supply shall be based on the existing competitors in malls. A market share of and 43.2% is available for the product. Pack Em All is the brand name of the product and is priced using Full cost pricing at the market at an amount of Php 682.75 inclusive of Value Added Tax. C. Technical Aspect

The bag is created for enhancing desirable human values such as increased comfort and improved quality of life. The product will provide lumbar binder fitted to the body waist, which will offer some trunk support through elevation on intra abdominal pressure and will serve to remind us of proper posture. It will also provide back support for the spine. This support is made up of 0.4 cm thick and 2.5 cm wide flat-bar aluminum material. Its height varies in three different sizes, 12, 14 and 16 inches. This is based on the length of spine from Thoracic level 3 (T3) to lumbar Region five (L5) of our target market. The manufacturing process is based on the usual process done by any bag manufacturing in the province, which is by the use of high-speed electrical sewing machine. The molding process of the aluminum back support is done by a hydraulic press. The whole production operation is estimated to have a standard time of 353.2455 minutes, including pattern making. But in case of mass production, this process will be eliminated and the total production time will be 104.8455 minutes or 1.75 hours. The plant size or plant capacity is measures based on the machine used. The plant will have the capacity of 10,080 units/day. The production schedule will be 10% of the average market share every year to provide safety stocks in case any increase in demand arises.

The plant is located at Paniqui Productivity Center, Brgy, Samput, Paniqui, Tarlac. This building is divided into two parts. The first part has already been leased and the proponents will lease the southern part The building has a floor of 630 sq.m and has a monthly rental of Php 20.00 per square meter. It is a 4 1/2 drive from our suppliers and 30 minute away from our target market. It is along McArthur Highway, which makes it accessible to public transportation. Paniqui is known for its sewing business, so laborers with that particular skill will not be a problem. Nearby towns could also provide manpower for the plant. The water requirements will only be minimum and will be supplied by the Paniqui Water District. The power consumption will be generated from the Tarlac Electric Corporation (TARELCO). The plant will not provide toxic wastes. Only excess fabrics will the wastes, and these will be sold to some backyard manufacturing that produce tokens and small purse for different occasions. D. Financial Aspect

The current ratio or working capital ratio is one of the fundamental measurements of a companys liquidity. This measurement is computed by dividing the total current assets by the total current liabilities. For JR. JEK PARTNERS, the profit margin on sales means that for the year 2002, they generated 6.66% of net sales. The decrease in the second year results from the inability of the plant to shoulder the expenses incurred in the production. But in the succeeding years the company recovers with the increase in the profit margin. Another way of testing the profitability of the business is through the use of rate of return wherein it measures the rate of return to the partners equity of JR JEK PARTNERS are 28.9%, 17.26%, 37.32%, 67.96% and 99.95% for the first, second, third, fourth, and fifth, respectively ensure that the business is profitable. With all other factors remaining constant, an increase in the partners equity will decrease in return of equity. For as long as the return of equity is greater than zero (0), the firm precisely earns income or, on the hand, breaks even. Shortly stated, the firm operates in a favorable performance. Thus, the project is financially feasible. E. Social Desirability Aspect

The business enterprise is deemed to serve as a great contribution to the governments effort in raising revenues for its functions. These shall be in the forms of income tax, permits, licenses, and other fees. The society will benefit as a whole because of its ergonomically design at the customers comfort. Its design will help not to worry about their childs posture when they grow old. The introduction of the bag in the market will pave the way of the competitors to lower their prices in order to maintain its competitiveness. The unemployment rate in the country will get low because this will provide jobs for the families. In this light, the manufacturing of the bag will attain its desirability and acceptance.

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Sugar Mill Feasibility Study

March 2, 2009, 8:04 am Name of the Enterprise This proposed sugar mill shall be called as Sweet Sugar Incorporated, obviously sugar is sweet and sweet is sugar. Thats why it shall be called as Sweet Sugar Incorporated. Sweet Sugar Incorporated shall have its own plant located in Sitio Maguindong, Luakan, Dinalupihan, Bataan. The site was chosen because its strategic location, where the supplies of public and private services are adequate and labor supply and raw materials are readily available. Sources of Raw Materials The plant shall have its own sugarcane plantation near the mill and the plantation shall be adequate in land area that will produce the needed raw material for sugar. Availability of Transportation The plant site is strategically located in Sitio Maguindong, Luakan, Dinalupihan, Bataan where transportation is not a problem. The plant is readily accessible to the workers. The finished sugar can be readily delivered to the market. Project Long Range Objective The Sweet Sugar Incorporated shall stick to its obligation and responsibility to its consumers of providing and producing the highest quality of sugar. No toxic materials shall be used or if there is, it should be properly disposed. It also respond to the needs of the barangay where it is located in order to help its progress.

The Sweet Sugar Incorporated shall be the number one product and supplier of high-grade sugar throughout Luzon and its neighboring provinces, and if expansion is needed, it shall be done without overlooking its primary objectives. Mode of Financing Financing shall come from the shares of the stockholders/owners of the Sweet Sugar Incorporated. If ever the shares cant cover up the expenses of constructing the plant before its operation, the Sweet Sugar Incorporated shall apply for loans which will give the maximum output for the plant. When business is already in operation, its liabilities and loans shall be paid from the sugar revenue Market Study As Bataan is situated geographically near the center of the Philippines, the finished product can be easily transported to the neighboring provinces in the country. Manila, the leading distribution center in the Philippines will be recipient of greater bulk of the product. Analysis of Market Demand and Supply Sugar is one of the primary commodities of the people, thus it is very important to have big supply that will cover up the big demand for sugar. The establishment of this sugar mill will greatly help our fellow Filipinos and most of all, our economy. This sugar mill will increase the sugar supply in the market, thus lessening our importation of sugar which is more expensive in cost. Market and Marketing Strategy Vigorous effort should be expanded to secure a market before a commitment is made to build a sugar mill if it would be most desirable to have the financial participation of one or more major users who can guarantee the purchase of substantial portion for the procedure production. During the past years, several overtures were made in this direction which revealed the opportunities existing. Scale and Volume The receiving of raw materials supply condition market potential and engineering should be considered. It would have production line which represent 769,434 tons per unit day. The output of the plant will depend on the production conditions. Sugar Marketing Operation The structure of general framework of market situation is already been said of the manner in which selling, shipping, financing and all other commercial aspect of marketing are out inside

the general framework. These function rarely been described except by and for the specialist concerned with them. They are the essential link, however, providing the customers with that they want and the sugar industry with their income. The successful selling of the product ultimately determine the prosperity of every one in industry if it is not sold successfully all the efforts of the farmers, millers and readiness with their employees and the most of business which supply and service them will suffer. The final customers are their most important millions of housewives buying sweets or soft drinks not only 4 lbs. of sugar and tin of golden syrup but also the tin of jam. Market Distribution Pricing Pricing should follow the established market prices and practices which in turn are determined by the forces of demand and supply, however because of uncertainty of sugar during the start up period, some prices concessions should be made in order to break into market. A suggestion that is to 20% reduction from established market prices be affected on the first year output. Consumer Surveys Everyone is using sugar everyday, but assumed of sugar feeds are centrally as possible within the area of cane fields, as this will facilitate the transportation of cane with less rolling stock and other fixed charges for their department. Moreover, easy cane supply, so necessary for a economical grinding, will secure to the factory. The direction of the prevailing wind and its accessibility to the factory and dwelling should be ascertained to avoid dust, ashes, smoke and odor of refuse going in wrong direction. Healthy surroundings are paramount importance to the employees. Standing and deterioration water must not be allowed near the factory. Technical Study Services Offered: The proposed plant site at Sitio Maguindong, Luakan, Dinalupihan, Bataan offers a plentiful supplies of water and power. The site offers adequate supply of water for growing sugarcane, and power for the production of sugar. It also offers adequate supply of laborers, which is considered more important than all the other factors, especially when skilled and unskilled laborers are required. Labor Skills required

The company will hire Filipino larorers in sugar cane manufacturing. Laborers near the company site and more preferable to the employees to insure promptness and can do overtime work when needed Another important reason is that people from nearest place can easily transport with their convenience since the company is small, the working force will be required from town itself or its vicinity. The company on the other hand will give assurance to the workers like a good working condition, facilities for a conductive maintenance of their health incentives and many other benefits required by the labor code, plus benefits given by the company itself. The Project Site Sitio Maguindong, Luakan, Dinalupihan, Bataan was chosen the best region of all sugar plantation in the Philippines due to its abundant supply of labor will not be difficult to achieve as most barrio folk are quite hardworking and industrious. Another reason is because of availability of raw materials and have favorable conditions. The plant would be erected near the national highway which will enable the transportation of finished product to the opposite provinces of course, sugar central will increase their yearly supply of sugar production thus helping the sugar industry. The determination where sugar cane factory is to be located is purely an agricultural one. So far, it is referred t the tract of land which has to be adequate for growing sugar cane fr a period of years and the location where climate condition and rainfall are much that successful crops to be expected. As Bataan is situated geographically near the center of the Philippines, the finished product can be easily transported to the neighboring provinces. Waste Disposal The various waste materials produced by industries maybe classified generally as solids, gaseous or liquid. Solid waste are directly related to a loud pollution gas liquid to air and water pollution, although all of them have combined and interrelated effects on pollution. Methods of Waste Disposal 1. Eliminate of source. The first approach to a waste disposal problem requires a careful attention of the source of pollutants. 2. Recovery of waste products. Before deciding how to discard waste materials, the engineer should always think for recycle, reuse or for sale. 3. Regulate how to fit dilution 4. Divert waste to other points 5. Waste treatment. A very expensive process the recent encountered by the major cities of the world due to smog problem and the question as due to how to dispose gaseous waste, electrostatic precipitators, aggrometrators, washers and many other kind of equipment have been used to remove atmospheric contaminants.

Disposal of solid waste materials on land is always a complicated problem, incineration and burying are possible solution and the best is by recycling. A judicious plant design eliminates a potential hazardous operations should be separated from various plant facilities and sufficient protection is made, possible sources of fire by eliminating all the unnecessary ignition sources such as flame, spark or heated material, welding, smoking, static electricity and the spontaneous combustion of waste materials. Chemicals can cause dangerous burns and accidents are bound to occur rotating sections of equipments should be amply protected to prevent accidents. Management Study For Pre-operating Period: During the pre-operating period, the stockholders are responsible to deal with some government and private agencies to secure the necessary document and deal in financing institution for financial needs of the project. These persons are the one to negotiate for the constructor. The supplier of the materials and by the hired construction firm and the supervision will be integrated with the said contract. Consultant shall be hired also to ensure the safety of the plant and to supervise the installation of the equipment. For Operating Period: During the operating period, the stockholders handled the key position in the company. The business is organized and incorporate with their respective holdings: Board of Directors - Chairman of the Board - Member - Member - Member - Maintenance and Material Director - Company Accountant - Sales Director - Production Director The company sees to it that hired accountant and supervision directors are all licensed by the professional Regulation Commission (PRC) in their respective professions. All these persons should have at least an experience in their respective jobs. The company accountant is responsible for the books and the preparation of the company book of accounts. He also prepares the payroll and he examines the financial status of the company. The sales director will assists the selling and finding markets for the products.

The production director is responsible for the production in order to insure for good productivity and minimize production or manufacturing costs. The maintenance and materials director is responsible for the safety programs and maintenance of the plant. He should set the guidelines and train workers about safety and accidents and be able to continue the flow of the product even machine breakdown occurs, which are hindrance to the companys re-productivity programs. Financial Study Major Assumption An industry like sugar mill requires a big capital. The stockholders shall provide the needed capital for the establishment of the whole business. Funds shall be given for the purchases of the necessary equipments and necessary materials for the construction of the building and for the purchase of land. In case that there is no sufficient fund, the company shall apply for loan in the bank which gives the lowest interest. During operation, the company shall pay its obligation out its revenues. Equipment cost less than P40,000,000.00. Building construction (payment for the labors included) costs more than P20,000,000.00. Land (for the plant site and sugar cane plantation costs P20,000,000.00. The stockholders shall produce a budget of not less than P80,000,000.00. Socio-economic Study Taxes and Restricting Law Bataan offers the lowest tax rate for industries like sugar production, and the best of Bataan is, they offer, provide government subsidy and help to the industries located in its territory. Provincial and town legislation are also important. The sweet sugar laws are more stringent in Bataan. Sweet Sugar Incorporated will help boost the economic status of Dinalupihan, Bataan because it will provide a great number of jobs for the unemployed folks in the area, thus, giving them more opportunities in life. Sweet Sugar Incorporated shall pay all its tax obligations on time. This is a partial study of Engr. Eric Lanosa. Tags: Feasibility Study, sugar mill Category: Sample Feasibility Study | Comments Off