What is a feasibility study? This presentation shows how feasibility studies provide valuable insight into projects enabling better decisions and more effective projects.

1. Jan-20 1Gauge CapabilityWhat is an effective feasibility study?

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What is an effective feasibility study?
• Defining feasibility studies
• Types of feasibility study
• Ineffective and effective feasibility studies
• Benefits of feasibility studies
• Principles of effective feasibility studies

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Feasibility studies

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Effective

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Types of feasibility studies
Area Feasibility study Questions
New business Recycling
business
feasibility study.
Volumes of waste?
Waste buyback costs?
Operating costs?
Licenses?
Profitability?
Expedition Arctic expedition
feasibility study
Method of crossing difficult
terrain?
Available expertise?
Cost?
Permission to travel?
Weather window for travel

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Types of feasibility studies
Area Feasibility study Questions
Commercial
accommodation
Head office
feasibility study
Build new or use existing?
Selection of site?
Planning permission?
Optimum layout?
Cost?
Residential
accommodation
Housing
development
study
Site selection?
Procurement model?
Site layout and density?
Housing design?
Cost?
Management options?

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Ineffective & effective feasibility studies
Ineffective
• The feasibility study is
subjective and biased.
• Evaluation criteria used to
evaluate options and feasibility
are not provided.
• No options are evaluated so
there is no exploration of
alternatives which may be better
• The feasibility is limited to cost
and does not evaluate technical
or other aspects that could
affective viability.
• No clear recommendations
linked to back to data are
provided.
Effective
• The feasibility study has been
carried out in a replicable,
objective manner.
• Clear criteria used to evaluate
options and feasibility are set out.
• A range of relevant options are
identified and evaluated in a
balanced transparent way.
• The feasibility study
comprehensively tackles feasibility
including financial, legal, technical,
and schedule aspects.
• Clear recommendations linked to
data and findings in the study are
provided.

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Benefits of feasibility study
• Go/no-go: Provides valuable information for a “go/no-
go” decision.
• Confirms: Confirms the rationale for project.
• Informs: Informs project ie design, construction
methods, procurement and operations.
• Options: Enhances the success rate by evaluating
options and selecting optimum ones.
• Risks: Identifies risks so that these are addressed.
• Constraints: Establishes project constraints in terms
of such as technical, technology, budget, environment,
regulation.
• Improves: ‘trial-run’ improves the project.
• Focus: Increases the focus of the project teams.

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Principles of effective feasibility studies
• Brief: The project and questions to be investigated by the
feasibility study are clear. Evaluation criteria and limitations
are defined and included in the brief.
• Alternatives: Alternatives and options for achieving project
objectives have been identified.
• Evaluate: Balanced, rigorous, evaluations of options are
carried out to identify optimum approaches.
• Develop: The approach is sufficiently developed to enable it
to be tested effectively.
• Tests: Rigorous, objective, financial, technical, legal and
schedule assessments are carried out .
• Recommendations: Conclusions and recommendations
based on evaluation of options and tests are presented.
Uncertainties and inconclusive results are included and
commented on.

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For more information
and to access the
full online course on feasibility studies
go to
www.gaugecapability.co.za