The document discusses feasibility analysis, which measures how practical and beneficial a project will be. It identifies four tests of feasibility - operational, technical, schedule, and economic. Economic feasibility involves analyzing the costs and benefits of a project, including development, operation, and maintenance costs, as well as tangible benefits like savings and intangible benefits. Payback analysis determines how long it will take to recover project costs.

1. FEASIBILITY
ANALYSIS
SN SHARMA
MANIT BHOPAL

2. FEASIBILITY 01-02-2023
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• Measure of how beneficial or practical the
development of a project will be to society.
• Feasibility Analysis
 Process by which feasibility is measured
Continuing process of feasibility
assessment

3. TESTS OF FEASIBILITY 2/1/2023
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• Operational Feasibility
• Technical Feasibility
• Schedule Feasibility
• Economic Feasibility

4. TESTS OF FEASIBILITY 2/1/2023
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• Operational Feasibility
 How well will the solution work?
• Technical Feasibility
 How practical is the technical solution?
How available are technical resources and
expertise?

5. TESTS OF FEASIBILITY 2/1/2023
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• Schedule Feasibility
 How reasonable is the project timetable?
• Economic Feasibility
 How cost-effective is the project or
solution?
Cost-benefit analysis

6. ECONOMIC FEASIBILITY 2/1/2023
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• Cost-benefit analyses
How much will the system cost?
Development costs
Operation costs
Maintenance and support costs
Do we possess the necessary technology?
Do we possess the necessary technical
expertise?
Is the schedule reasonable?

7. BENEFIT ANALYSIS 2/1/2023
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•Benefit analyses
Tangible benefits can be easily quantified.
Measured in terms of monthly or annual
savings, or of profit to organization
Intangible benefits more difficult to
quantify.

8. BENEFIT ANALYSIS 2/1/2023
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Tangible Benefits
• Fewer processing errors
• Increased throughput
• Decreased response time
• Elimination of job steps
• Increased profit
•Reduced expenses
Intangible Benefits
• Improved customer goodwill
• Improved employee morale
• Better service to community
• Better decision-making

9. ECONOMIC FEASIBILITY 2/1/2023
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• Payback analysis
How long will it take to recover the costs
of this project?
Return on investment (ROI) analysis
Net present value analysis