2. ? ? ? ?
It means :
• Possible (Achievable)
•Practical To Do Easily (Or)
Conveniently
3. What is
Feasibili
ty Study
????
•The feasibility study is the term used to describe the preliminary
analysis that is used todocument the projectworkability.
•As the name implies, a feasibility study is used to determine the
viability of an idea, such as ensuring a project is legally and
technically feasible as well as economically justifiable
• It tellsus whethera project is worth the investment
• The study helps the companies in deciding whether to move
or not to move on with.
4. Benefits of
Conducting a
Feasibility
Study…….
•A feasibility study might uncover new ideas that could
completelychange a project’s scope.
•Conducting a feasibility study is always beneficial to the
project as it gives you and other stakeholders a clear picture of
the proposed project.
• Improves projectteams’ focus.
• Identifies newopportunities.
• Provides valuable information fora “go/no-go” decision.
• Narrowsthe business alternatives.
• Identifies a valid reason to undertake the project.
• Enhances the successrate byevaluating multiple parameters.
• Aids decision-making on the project
6. 1.Technical
Feasibility
• This assessment focuses
available to theorganization.
on the technical resources
•It helps organizations determine whether the technical
resources meet capacity and whether the technical team is
capableof converting the ideas intoworking systems.
•Technical feasibility also involves evaluation of the
hardware, software, and other technology requirements of
the proposed system.
7. EXAMPLE: (For Technical Feasibility)
Hyperloop Transportation Technologies (HTT), a US startup which is hoping to
revolutionise travel.The Hyperloop high-speed travel in pods inside a partial-vacuum tube .
that could lead to people being able to travel from Chennai to Bengaluru in 30 minutes
— for a fraction of the cost of an airplane ticket.
Source:
economictimes.indiatimes.com/
8. 2.Economi
c
Feasibility
•This assessment typically involves a cost/ benefits analysis of
the project, helping organizations determine the viability,
cost, and benefits associated with a project before financial
resources are allocated.
• It also serves as an independent project assessment and
makers
enhances
determine
project credibility—helping
the positive economic
decision
benefits to the
organization that the proposed projectwill provide.
9. EXAMPLE: (For Economic Feasibility)
Announced as the most affordable production car in the world, Tata aimed for a price of
1,00,000.Only the very first customers were able to purchase the car at that price, however, and
as of 2017, the price for the basic Nano starts around 2,15,000. Increasing material costs may be
to blame for this rapid rise in price
10. 3.Legal
Feasibility
•This assessment investigates whether any aspect of the
proposed project conflicts with legal requirements like
zoning laws, data protectionacts, orsocial media laws.
•Let’s say an organization wants to construct a new office
building in a specific location. A feasibility study might
reveal the organization’s ideal location isn’t zoned for that
typeof business.
•That organization has just saved considerable time and
effort by learning that their project was not feasible right
from the beginning.
11. 4.Operational
Feasibility
•This assessment involves undertaking a study to analyze and
determine whether—and how well—the organization’s needs
can be met bycompleting the project.
•Operational feasibility studies also analyze how a project plan
satisfies the requirements identified in the requirements
analysis phase of system development.
12. Example:(For Operational Feasibility)
Jio is not just a telecom network, it is an entire ecosystem that allows Indians to live the
digital life to the fullest.
Jio strives to mould the future of the country by enabling end-to-end digital solutions, not only
for institutions and businesses but also for households, thus building a communicative bridge
with rural and urban areas.
So, I think their slogan Jio Digital Life truly exudes the correct meaning of their vision of
Digital India.
13. 5.Scheduling
Feasibility
•This assessment is the most important for project success;
afterall, a projectwill fail if notcompleted on time.
• In scheduling feasibility, an organization estimates how
much time theprojectwill take tocomplete
14. Example : (For Scheduling Feasibility)
Dominos pizza 30 min delivery challenge
• Baking takes 6 minutes
• Cutting, packing and pick-up make up for, say, another 5 minutes
• Delivery time should never exceed 12 minutes
• Add all that-it's a neat 23 minutes.
• Give a 7 minute buffer to our employees for unforeseen traffic, rains etc.,
• With 20,000 employees across 552 stores spanning 118 cities, the process is performed.
15. 6STEPS OF
Feasibility Study
1. Conduct preliminary analysis
2. Outlining the project scope and conducting current
analysis
3. Compare your proposal with existing products and
services
4. Examine market conditions
5. Understanding financial costs
6. Reviewing and analysing data
16. Step 1. Conduct preliminary analysis
• Outline the planned idea or action
•Examine the market space and the commercial viability
of the action
• Examine the unique characteristics of the idea
• Determine if there are insurmountable risks to the action
17. Step2 . Outlining the project scope and
conducting current analysis
• Defining the area of study for the feasibility study
•It’s essential to study the different parts of your business that
might be influenced by the proposed action or idea
• The key to outlining the scope is about understanding the
different participants and end-users of the proposed idea or action
•Finally, you also need to analyze the current situation prior to the
implementation of the idea or action.
•Once you’ve done this, you can study the savings and the
operational benefits you are hoping to achieve with the new
proposal.
18. Step 3. Compare your proposal with existing
products and services
• Whether you are implementing a new software or equipment or launching
your own new product, you need to compare the proposed product or
service with other similar items on the market.
• This might mean you need to compare the feasibility of your chosen
software (for example, accounting platform) with other products on the
market
• Are the risks associated with your chosen software smaller or bigger than
those of competitive products?
• The same analysis applies when launching a new product.
• Part of your feasibility study must then focus on understanding what the
customers are looking for ??and whether your proposed idea answers these
needs.
• You should also compare the proposed product with the existing products
or services and focus on the advantages, as well as disadvantages, you might
have.
19. Step 4. Examine market
conditions
•Defining the target market.
• Studying the buying habits of the target market.
• Understanding thesaleand marketshareoutlookof theproposal.
• Outlining theproductawarenessrequired forthe useof yourproductorservice.
• Understand the revenueprojection for implementing the proposed ideaoraction.
•For example, in terms of product or service awareness, you must be able to determine
the type of marketing required for potential customers to understand and be able to use
the item.
20. Step 5. Understanding Financial
costs
• The resources required to implement the idea or action.
• The source for these resources: Internal or external financing.
•The break-even schedule for the proposal: This refers to the time it takes to a point
when the profits from the idea or action equal the costs associated with it.
•The financial risks associated with the idea or action: This can refer to risky market
conditions, the probability of requiring more resources and so on.
•The financial cost of failure: You also need to calculate the financial cost of the worst-
case scenario. This can determine whether your business has the means of embarking on
this new venture or not.
21. Step 6. Reviewing and Analysing
data
• Are there any risks you weren’t aware of previously?
• Have the market conditions changed?
• Has the competition changed?
• If the conditions have changed, you can review these parts of the feasibility study.
• Once you’ve reviewed your results, you can go ahead with the final decision.
•The feasibility study should provide you the answer of either moving ahead with the
proposed idea or action, or scrapping the idea and looking for something different.
22. Cons of
conducting
Feasibility
Study •At first theanalysis is juston paperand thiswill not
highlightany real practical problems resulting a
total failure of the business idea.
Toovercome this problemyou should make
bettersimulations and reiterations to minimize
any gap between the predicted and actual
situations.
• Anothercons is theanalysis may takesome time &
effort.
•Finally it may be costly depending on the industry
type.
