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A feasibility study is a preliminary study undertaken to determine and
document a project's viability or the discipline of planning, organizing, and
managing resources to bring about the successful completion of specific
project goals and objectives.

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FOR EVALUATION ONLY (Internal Document

Feasibility Study
Feasibility Study is a Critical Study of a Project to derive the deliverables and viability of a
Project giving a Detailed Market Value and Product Value of the Project.

It involves the following stages:

Project Overview
Introduction to the Project
Project Concept
Objective

Feasibility Study
Objective Feasibility
Market Feasibility
Technology Feasibility
Resource Feasibility
Legal Feasibility

Economic Feasibility for undertaking the Project.

Planning
Project Plan
Project Phases
Scope of Work
Time Frame
Resource Planning
Financial Planning
Marketing Plan
Product Prospectus

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FOR EVALUATION ONLY (Internal Document

PROJECT OVERVIEW

Introduction to the Project:

Hose Design for a Fuel Dispenser is a Student Project Initiative in collaboration with Mechian
Projects. Project Concept builder, Nagaraj of University Visveswarayya College of Engineering,
introduced the concept of saving fuel wasted after refueling a tank of a vehicle. Scope of the
project being the design, modeling, testing and evaluation of an Add-On to the Existing Fuel
Hose Nozzle, the Feasibility Study of the Project is described in this report.

Project Concept:

Based on the observations at fueling stations at least 3-5 drops of Fuel is wasted per filling. With
the average sales of 50KL per Petrol Pump per Month and 150kL per Diesel Pump with an
average filling qty of 25 Ltrs/Filling, we derive that about 2000 Petrol fillings and 6000 diesel
filling takes place in a month. For each filling about 3-5 drops of fuel is wasted. Further based on
the studies done by renowned labs, 1 drop of water contributes to 0.025mL.

Volume per drop is a characteristic feature of the Surface Tension of the liquid. Water having a
surface tension of 75Nm/m and Petrol having a surface tension of 20Nm/m, water drops will be
comparatively larger in volume compared to a drop of Petrol. Considering 1 drop of Petrol is
equivalent to one drop of Water, i.e. .025 mL, considering a wastage of 5 drops per filling would
indicate a loss of 0.125mL per filling. Considering a total of 8000 fuel fillings per month per
pump, a wastage of 1000mL ~1L of fuel is wasted per pump per month.

With 33000 plus fuel stations in India and assuming an average of 2 Fuel Pumps per Station a
total of 65000 pumps exist. With a wastage of 1L per month per pump, a total of 65000 Liters
are wasted per month throughout the country or 7.8Lakh Liters per year which results in a loss of
3.12 Crores of Rupees per year accounting only to wastage of fuel due to improper deactivating
of the lever. Thus approximately INR480 is lost per pump per year.

An Ad On Product is found to be necessary to avoid this wastage. This project approaches the
above situation in arriving at a feasible solution with a minimum cost involved to rectify the
situation.

The Ad On is to be designed for an Air Tight Closure of the Nozzle tip so as to avoid any
spilling of the fuel from the Nozzle once the Hose is withdrawn from the Tank. A complete
mechanism of the existing is to be studied.

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Objective:

Objective of the Project is to arrive at a Feasible Design of an Ad On at the tip of a Nozzle of the
Hose of a Fuel Dispenser. This part is to be designed for a function of air-tight closure of the
nozzle Tip so as to stop the fuel flowing out from the Nozzle once the Hose is withdrawn from
the Fuel Tank.

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FEASIBILITY STUDY:

Objective Feasibility:

Objective being saving the wastage of fuel from being spilled when withdrawn from the petrol
tank is to be evaluated to a situation for its usability. It is obvious that fuel gets evaporated when
in contact with a higher temperature surrounding. It is important to evaluate the availability of
Fuel once stopped from flowing out of the Hose.

It is also necessary to consider the situation where the fuel can get evaporated due to the
atmospheric conditions. A brief study has to be made for evaluating the same.

Market Feasibility:

IOC the leader of fuel suppliers has an annual turnover of Rs. 247479Crores (Year 2007) and a
Profit of Rs. 6963Crores holding a market share of 49% in petroleum products. Assuming the
loss in fuel being 3.12Crores of Rupees per year of which 49% can be attributed to IOC. This
indicates that the loss IOC would experience due to wastage of fuel is approximately 1.53Crores
which is 6.17*10-6% of its revenue. The direct market for any product with the current objective
seems to be inefficient as a loss of 1Liter per month per bunk seems to be negligible.

A Cost to Benefit Analysis has to be conducted to arrive at a final conclusion.

Technological Feasibility:

The type of product in the case of modifying a product related to Fuel Pumps cannot involve any
electronic devices due to the hazards of fuel explosion. Thus only a mechanical design would be
suitable. Further the part cost cannot increase Rs. 480 per Ad On, due to the maximum loss being
Rs. 480 per fuel pump. The life of the product has to be more than one year to reap benefits of
the same, though the market feasibility describes that the benefits from such a project is very
marginal or negligible.

Resource Feasibility:

From the Project perspective, a mechanical design can be completed within a maximum period
of One Month with two resources working on the Project. Further, the modeling and testing
would attract two months duration. Acceptance test would require one Week after modeling and
testing. The project can be managed with 2 people in a period of 3 months and one week from
the effective date of starting. Man-hours on the Project is estimated to be 800 hrs considering 2
people working on the Project with 5 hours per day 5 days a week. Based on the average
corporate rates per Man Hour, approximately Rs. 100 per Man Hour can be considered. Thus the
Project Value can be defined as Rs. 80,000.

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Legal Feasibility:

No legal issues are involved in this project up-till Marketing and Sales. For designing a
Business Plan for the Product a separate Marketing & Sales plan is to be formulated once
the Project is considered acceptable by MPPO.

Economic Feasibility:

Project Investment is low as it does not involve factory visits. Prototype and Model of the
product could involve costs which is planned to be 10 times the proposed cost of the product.
Thus the Cost of Modeling can be in the Range of INR 4800 – 5000 per model / prototype.

This is considered to be feasible for a Project Value of Rs. 80000.

CONCLUSION:

The above study is to be evaluated and a conclusion regarding the feasibility of the
project is to be conducted.
Any discrepancy in the Study has to be brought to the notice of the Document Writer and
evaluated for the same.

Any changes in the Documents, has to be done in the same format of FONTS and has to be
colored red with a Yellow background. Eg: EDDITED

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