Feasibility Study

Definition

An analysis and evaluation of a proposed project to determine if it is technically feasible, is feasible within the estimated cost, and will be profitable. Feasibility studies are almost always conducted where large sums are at stake. It is also called feasibility analysis.

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Scope of Works

Due to the uniqueness of each process, a certain project will be has a specific scope of works. In feasibility study, the scope of works may include, but not limited to: site assessment, electricity study, supply and demand of product market study, the availability of feed stock study, technology review & selection, economic feasibility, schedule feasibility, operational feasibility, legal feasibility, strategy to execute the project, financial strategy plan, and assessment of the feasibility of whole project by reviewing the result of feasibility study, etc.

Form of Feasibility Study

Technology & System Feasibility

This assessment is based on an outline design of system requirements, to determine whether the company has the technical expertise to handle completion of the project.

Economic Feasibility

In economic feasibility, cost benefit analysis is done which expected costs and benefits are evaluated.

Legal Feasibility

It includes study concerning contracts, liability, violations, and legal other traps frequently unknown to the technical staff.

Operational Feasibility

Operational feasibility is mainly concerned with issues like whether the system will be used if it is developed and implemented.

Schedule Feasibility

Schedule feasibility is a measure of how reasonable the project timetable is.

Benefits of Conducting A Feasibility Study

Conducting a feasibility study could helps you to determine your likelihood of success and can indicate how and when to do a project.
Project feasibility studies show you the risk/reward benefit, opportunity costs and overall return.
Businesses find it helpful to conduct a feasibility study whenever they anticipate making an important strategic decision.
One of the biggest advantages of a feasibility study is the validation of a prospective timeline.
Feasibility studies always analyse whether a real demand exists for a product or a service.

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