PROJECT FEASIBILITY

By

Dr. Ali Sajid

By

Dr. Ali Sajid

Education & Training

A person who
graduated,
yesterday and stops
studying today is
uneducated
tomorrow."

"

Fear & Wisdom

"To

conquer fear
is the beginning
of wisdom."

(Bertrand Russell)

Feasibility
1.Viability of Idea
2. Analyzing Feasibility ( Possibility) of Proj Possibility of Completion ?
Will it be Successful
3.Reasonable likelihood - constraints
Will Not prevent a proj from meeting key obj
4.Synonym: Achievability
5.Plng & Orgzg Procedure
-To Ensure Proj is Effective
-It will work.

Feasibility
Reasonable

likelihood that
Constraints on
Time & Other Resources
will not
Prevent a Project from
meeting its
Key Objectives

What is Feasibility?
Capable of being done,
with means at Hand &
Circumstances, as they are.

Purpose of a FS
To help assess
Viability of a business ideaTechnically, Operationally & Economically

Feasibility Assessment?

Is the disciplined & documented process of thinking

through
an idea from its Logical beginning
to its Logical End.

This is to determine its Potential

to be a viable business
given realities of the Economic
& Social environment
in which it will operate

Provide Client with a solid foundation upon

which a project is built.

FS Provides

Concept identification,
Estimates of supportable market,
Design parameters,
Estimates,
Revenue projections
Net warranted investment.

Essentially Road map of proj

Process of Analysis
Identify
problem or
opportunity

Set up
feasibility
study

Recommend
proceed
/shelve

Evaluate
alternatives
develop/buy

Define scope
and
objectives

Carry out
different
aspects
of the study

Scope Statement

A written statement includes:

Project Justification
Project Objectives
Major Deliverables
Criteria: Project/ or Phase
Successfully Completed

Project Charter

Formally Recognizes Existence of a Proj

Gives PMgr Authy to Apply Resources to

Proj, Univ Charter

Product to be Delivered ?

Refers to Business Need Proj is

Addressings

Types of Feasibility
Technical Feasibility
Managerial Feasibility
Economic Feasibility
Financial Feasibility
Cultural Feasibility
Social Feasibility
Safety Feasibility
Political Feasibility
Environmental Feasibility
Market Feasibility

Tech Feasibility- First systematic

investigation of Proj Design Viability.

Foundation of all other FS .
- Assessment of a Proj Capabilities.
-Investigation of Technical & Physical Para/mtr
TF Reviews:
-Technical Capability of HR
-Capability of Available at Technical side
Foreign consultants Role -LDCs
-Too rigid, & Advanced Tech Spec
- Cannot be met by Country.

Question is Can it be built?

Technical Feasibility (TF)

Anticipate Broader Problems with Questions:
1.
Adequate Choice of Available Technologies for
Alternative Design purposes, considering:
a.
Physical layout
b.
Engineering design
c.
Availability of raw materials?
2. Costs of Constructing & Operating P-Facilities - Svc
a) Machinery, b ) Equipment, c) Spare Parts?
3.
Manpower Req:
a)
From professional to labor
b)
locally available?
c)
Responses vary sector to sector

Technical Feasibility (TF) Contd..

Primary task of TF is Blueprinting:
a)
Manpower Needs
b)
Resources, and Design

c)
d)

Provide Design Alternatives

A Choice of Available Technologies,
& Cost estimates for each alternative.

Admin/Managerial Study (AM S)

Evaluates Strategy of company in C/ Out Proj
Activities.
Providing info & GuidelinesUsed to improve overall Proj Admn.
Project mgr in investigating team.
Examines 4 Components:
A.
b.
c.
d.

External linkages,
Internal organization,
Personnel, and
Mgt plan

Economic Study (Econ S)

Examines a Proposed P-in terms of:
Net Contribution to Industry /Economy
& To society.

Address 3 Related Questions:

P-Responsive to Urgent Present or Anticipated
Econ/Social need?
2. P-Planned Econ o/p Serve Intended Purpose?
3. Svc Proposed to be Performed by P4. Benefits - Justify P - Cost?

Economic Study (Ec S)

Reqs: Study of all of Econ Implications of P:
a) Demand & Supply of All P- O/P.
b) P- Ability to Inc employment
c)P- Multiplier" Effects (-Inc Purchase of
goods Effect
d) Effect on inc PS Revenue (income tax, sales),
e) use of Locally Available resources.
Assess P- Net Contribution to Econ/social welfare of
community.
Comparison of Econ & Social Benefits-genrtd
From P-Vs Costs of Construction & Ops.
B > C Proj- Economically feasible. Profitability analysis
is conducted.

Economic Feasibility (Econ F)

Summary of Economic B/C of Proj
Extent to which savings Passed on

1.
2.

Optimum timing of Proj

Sensitivity Analysis

4.
5.
1.
2.

6.

Considering influence of variations of critical P/M

discount rates,renergy cost, Construction costs, Tfc forecasts.

Conclusions as to Econ F or not

Financial FeasibilityCapability of Proj Org -Raise Funds to implement

proposed proj
(different from economic feasibility
Cultural FeasibilityCompatibility of Proposed Proj vs cultural setup
of Proj environment
Social FeasibilityAddresses influences of P-on Social System in
Proj Environment
Safety Feasibility
Considered in Proj Plang.
Analysis if Proj Capable of Implementation
& Oprtd Safely -Minimal Adverse effects on
masses.

Environmental Feasibility-Concern must be shown

-Action must be taken to address any &
all environmental concerns raised or anticipated
-Mega Dams issues (Aswan Dam)
- New Murree Proj

Political Feasibility
Referred - Politically Correct Proj."
Political considerations often dictate
direction for a proposed proj
More common in LDC

Proj Feasibility

Market FeasibilityMarket Variability & impact on Proj

.
Not confused with Econ/ F
Mket needs analysis to view:
a) Potential Impacts of Market Demand
B) Competitive Activities, etc.
c) Divertible" Mkt Share -Available