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AMENDMENT SHEET
RE INITIATED DONE
DATE PAGE # SECTION NATURE OF AMENDMENT
V. # BY BY
Distribution:
a. Director
b. GM. Plant
c. HOD
d. MR
Document Approval
1.0 PURPOSE
A feasibility study is a study, which is performed by an organization to evaluate whether a specific action or
product makes sense from an economic or operational standpoint. The objective of the study is to test the
feasibility of a specific action or product and to determine and define any issues that would argue against this.
2.0 SCOPE
This procedure is applicable to Development department of the Organizations.
3.0 PROCEDURE
DGM engineering and development, development officer, Sr. Manager Supply Chain and Material purchase
manager are jointly study the available technical information which is received from customer.
In case of disapproval, the enquiry is duly returned to the supplier with a plausible excuse.
In case of approval, the feasibility is forwarded to costing section for the development of price breakups.
3.6 Price Breakups
After approval of techno-feasibility, the cost assessment activity is performed. The activity takes the following
head in account for pricing the project:
Material
Man
Overheads
Packing
Transportation
Profit Margin, etc.
The cost that is to be incurred in each section is to be assessed and input in the price breakup format. The price
breakup is submitted to the customer for review and approval. The customer holds price negotiation meeting and
joint assessment of cost in each section. The price is then finalized by safeguarding the interest and benefit of
both of the parties. The finalized breakup is signed by both parties and a copy of which is kept in our records for
record and reference purpose.
The price finalization is the kick off point to the project planning and initiation.