Feasibility involves the evaluation of project idea to what extent a detailed investment proposal is required. Generally, three alternatives are available in the context of project idea evaluation. If the project idea is feasible, it means entrepreneur can move to next step. If project idea is not feasible, it is an indication that it would be better to abandon the ideas. However if it is not possible to arrive at a conclusion, then entrepreneur should try to collect more relevant data and analyse the same for arriving at a conclusion. Feasibility study should focus on the issues like 1. General information of the industry as a whole 2. Objectives of the proposal 3. Alternative ways, if any of attaining the objectives and better suitability of the proposed project 4. Project description, gestation Period, costs, technology proposed, anticipated life of the project 5. Demand analysis, total demand/requirement of the country including antipating imports and exports and share of the proposed project 6. Capital costs and norms assumed activity-wise and year wise, 7. Operating costs and norms 8. Revenue and benefits estimation

It is a master report prepared from information collected through feasibility studies and consists of various tables, reports and statements. It incorporates introductory information on background of the industry to which the project belongs and the organisation preparing the report. It provides adequate information for project appraisal. Besides, financial institutions also use this report for evaluation before extending financial assistance to the enterprise concerned.

foundation designs as well as time schedule for project implementation. In technical analysis . feasibility report decribes the nature and complexity of the project as well as a general view on investment range. However DPR is an official document prepared with a lot of care and diligence . efforts are . 2. enginering drawings. position of power . However. On the other hand . FR deals with an exploratory research anf hence needs a span of 6 to 15 months. 4. It needs one year to two years after the investment decision is taken by the entrepreneur or the tiop management. TYPES OF FEASIBILITY STUDY Feasibility study is defined as a formal investigation of profitable opportunity which leads to rational decisions about making an investment decision . FR is reliable for a short period of time till the investment decision is made about a project. Thus. 3. Besides.Market survey is the most popular method for assessing the market feasibility study. FR provides basis on which the investment decision is taken whereas DPR is used as a work plan for the implementation of a project. transportation . evaluation of technical know-how and project schedule . availability of raw materials . But DPR guides the entire project and even if any variation is available in the project data then it can be compared and observed. Feasibility report presents relevant facts before the top management or entrepreneurs enabling them to accept or reject the project . production shed . proposed size in terms of economic size . township development .DIFFERENCE BETWEEN FEASIBILITY REPORT AND PROJECT REPORT 1. DPR serves all practical purposes in the project development and for future reference .It consist of : 1. Moreover it pre-supposes the economic and social benefits to be derived from the project. project location in terms of advantages / disadvantages . efforts are generally made to review the infrastructural facilities like land . Actually . Market feasibility study: It is known as economic feasibility study. which location would be most advantageous and what the size of the plant should be”. 2. Feasibility report is expected to serve as a preliminary assessment of the overall worthwhileness of a project idea. Technical feasibility study : It is “an attempt to determine how well the technical requirements of the industry can be met . building . FR is concerned with pre-investment decision but preparation of DPR is a post-investment decision . It evalutes the market factors like market growth potential and location of competitors . it always gives an opportunity to revise the actions and rectify mistakes before they are taken for approval . detailed project report involves the preparation of detailed specifications and designs. In the study . site investigation .

he is also required to contribute his contribution as per laid down norms. Entrepreneur is expected to maintain an effective debt-equity ratio. Financial feasibility study :It deals with evaluation of the estimates of cost of the project to ensure that it contains all provisions for contingencies and are realistic . Social profitability study : It is defined as a process of evaluating a project in terms of total impact which the project will have on the economy of the nation . he is required to undertake certain tasks to be performed for it’s implementation within a stipulated time period. it is a resource investment proposition where the national interest is involved.These projections are generally governed by market forecast of the project . 5. Techniques for Measuring Feasibility A number of methods and techniques are used to prepare a project plan. A critical examination of financial projections is necessary to ensure the paying capacity of the project in respect of future dividends . The methods and techniques are stated as: 1) Bar Chart. 3. Besides level of competition is also assessed under this study enabling the entrepreneur to assess his strength and weaknesses in the market. either horizontal or vertical lines are drawn to show the time of start of the work and of completion of work. Traditionally the quantum of work involved in each item of activity is used to be estimated and schedule prepared and plotted putting rectangular line bars against each of such items.necessary to anlayse whether the production of the proposed unit would be absorbed in the market or not . Commercial feasibility study : It evalutes the commercial aspects of the arrangement of the project . Over all demand forecaste of various categories is quite helpful in acheiving the above objectives . It also examines the arrangement process for procurement of machinery and equipments . Similarly . The activities of each project are shown by dividing into some stages. Under this method. Actually . It helps in evaluating individual projects within the planning framework which indicates sectoral policy objectives and resources allocation. Once the project has been formulated by an entrepreneur. The whole evaluation process includes the progress regarding placement of orders of equipment . But it suffers from limitations that this .It is a traditional method or technique. In this context. repayment of debt obligation and serving of interest 4. Assessment of sources of finance and position of fund tie up is undertaken in this study. Arrangement process for sale of goods and services is also included in this study. These forecast are regularly prepared by the professional agencies involved in marketing network . national planning process and objectives are used as basis for social profitability study. The quantum of each item of work is completed or yet to be completed on a particular date of review could be assessed. procedure for selection and tendering .

independent schemes and uniform factors of resources are used. The PERT first developed in USA has now been proved to be a powerful tool for management in various programme. project planning is prepared using computer hardware and software. project planning is prepared through various projects.chart fails to isolate the critical are of work where the completion of project on a scheduled date is constrained. Actions are usually taken to accomplish the activities on the basis of priority. charts. A schedule of activities is prepared on the basis of time schedule prepared work is actualised. When the projected activities are accepted for implementation ass per budgeted estimates. diagrams etc.A. this method of profit planning is especially suitable in the following cases:(a) Where a number of homogeneous. CPM is another technique allied to PERT. contract work etc. (c) When similar type of work repeatedly occurs and similar work is performed again and again. In the former method. With the help of computers.S. The method of computer aided project planning supplies data in the following way:- . 2) Programme budgeting: when the activities are in the implementation stage. Moreover the relation between the amount of resources employed and the time needed to complete the project is also assumed to be known. 4) Line of balance method: This method is followed in developing project planning on graphical basis. For different work different types of packages are formulated. 5) Computer aided planning: Computer aided project planning is formulated at present in large projects. This method is not at all popular in India though it is so in U. The benefit of this method is that proper emphasis is placed on the works. graphs. this method is generally applied. schedule is prepared where the activities are shown by dividing them into stages. (b) Uniform type of raw materials is used in abundant quantity in various sectors of large project. It supplies data through tables. a time is fixed for each part of the work is performed on sequential basis and maximum time indicated for it’s accomplishment. The CPM helps to know the amount of time needed to complete the various factors of project assumed to be known with certainty. Computer makes accounting work easier and prepares numerous statements and report. consisting of large number of activities and determining the expected time required to complete those activities up to a certain stage of completion of work. 3) Network analysis: PERT and CPM are two branches of network planning technique.

These criteria as grouped as under: 1) Specific Criteria 2) General Criteria Specific Criteria: These are concerned with the economic development of the country. individual work. which gives account of project or scheme. What will be the amount of raw materials and how these can be used can be known. maximum time allowed for work. total cost. Optimum product mix with the help of abundant resources and scarce resources are advisable in this centre. minimum time allowed for work etc. It indicates the difference between actual cost and anticipated cost. (c) Description of the work on the basis of time which instructs the time needed for each work. time basis (daily. (b) Indexing of work which indicates complex work.(a) A general description. (d) An idea about utilisation and efficiency of human resources and other resources can be obtained. (c) Foreign exchange benefit criterion: it deals with the earning capability of foreign exchange. or monthly work etc. division of work. time for completion of work. group work. work on the basis of division functional work. time for start up work. description of activities. besides some factors are scarce in availability but efforts should be made to use scarce resources as complimentary with the abundant resources. So stepping stone theory is the basis for this criteria size of the project should be growth oriented and SSU is to be developed as medium scale as large scale at a later stage of development process. number of activities and person authorised for the activities. It means that if a project can earn foreign exchange . weekly. (b) Size and complexity criterion: This criterion encourages those projects which are small at their primary stage but there is growth potential for higher size. training of different types of programme. work based cost. These criteria are as follow: (a) Factor intensity theory: according to this theory entrepreneur should execute those project which are expected to help in utilising the abundant resources. budget cost will be available. Thus large scale enterprises using more complicated techniques and yielding distant returns must wait for a later stage when simple entrepreneurial skills and attitudes have been learned. There are different selection criteria generally used with regards to project selection. (e) For the project. Selection Criteria Selection criteria are valuable tools for the systematic and objective analysis of projects.

these criteria are: (a) Entrepreneur has technical capability in a particular field (b) Entrepreneur is interested to seek financial help from financial institution and that is meant for the project (c) Regional bias of the entrepreneur to develop a particular project in a particular region keeping in mind the availability of local resource. General Criteria: These criteria are concerned with the entrepreneur’s own interest. (e) National economic profitability criterion: It evaluates the rate of return to the national economy on an investment in a project taking into account all major measurable economic cost or resource benefits. . It uses net profit after deducting are cost basis for evaluating commercial profitability of the projects. measurement of profitability of the projects measurement of profitability is governed by important factors like: i) Estimated capital cost of the production and ii) estimated receipts from the sale or realisation from project output. It is notable and then an efficient allocation of investment resources is achieved by equating the social marginal productivity of capital in it’s various uses. (d) Entrepreneur has an intention to develop a project in a particular field seeking a dominating status in that particular field. Thus natural economic profitability is defined as the total net measurable rate of return to the economy on an investment. (d) Commercial profitability criterion: It considers the profitability aspect of the project.then it must be given preference in selection to other projects which are not expected to earn foreign exchange.


Adquate information regarding where the product is available all the information must be disclose. students don’t get a good and tasty food according to their taste. So establishing a maggi stall /van could be a vital idea and the entrepreneur will not only earn but the students will also get some fast food as per their taste or we can say studentfriendly food . For using induction cooker the entrepreneur must be literate in using the induction cooker. It consists of total 59 department including the self-finance courses and on an average more than 1500 students are enrolled each year in the university.Market feasibility study : It is one of the important study that is involved in the report and it involves potential customer for the business.30 am and continues upto 4 pm and in between this students get time to have their tiffin and snacks but due to lack of availability .Advertising expenses 4.Total fund required Cost involved 300000 5000 10000 50000 365000 .Financial feasibility study : This report consist of all the details regarding to the sources of procurement of finance and a estimated requirement needed to purchase things to run the business are as follows : Product require 1. Technical feasibility study : In the project the technical study can be of using the latest technology of cooking the magi and instead of using cooking gas or strove we can use induction cooker as gas cyclinder will be too costlier and induction can be used in the help of electricity and cooking in induction takes less time and magi can be rendered to students as soon as they demand for it.Tata ACE 2. Purchase of induction cooker and others 5. Uktal University has many departments whose classes starts as early as in the morning at 7. 2. 3.Utkal University is one of the reputed universities of Odisha and also ranked 17 th in India.Decoration of van 3. So before looking on to project and its feasibility report and feasibility report consists of the following : 1. The entrepreneur must adopt marketing strategy like posting banner at some important places of the university.

Oil and others 5.Maggi chota pack 3.Commercial feasibility report : In this report it includes where the business will be undertaken and what will be th turnover of the business in a month and the estimated turnover during a month is follows : ESTIMATED SERVICE ESTIMATED TURNOVER 1. .Electricity consumed by induction 4. Per plate maggi 2.Profit 10 5 1 1 3 So on a avg if 200 students eats magi then the entrepreneur can earn net 12000 to 15000 profit per month of 30 days.4.

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