Project Feasibility Study Samples

Written by: Jean Scheid • Edited by: Ronda Roberts

Updated Sep 20, 2011 • Related Guides: Project Managers

Some projects require feasibility concept studies before moving forward in a project and to find
out if it is deemed feasible, profitable, and doable. What are the ingredients of feasibility studies?
Here’s a look what you need to know about them with free feasibility study samples to guide
you.

What Is a Feasibility Study?

Simply put, a feasibility study in project management is used to find out if a project is feasible
prior to investing real resources and dollars. Often, project managers are hired to complete
studies for clients to determine if a proposed venture will be profitable as well as what risks it
will take.

The feasibility process is completed prior to project initiation or often, can be utilized to see if a
set of processes or procedures will enhance or harm project outcomes.

Feasibility Study Steps

Whether you are working for a client to see if a business, product, or process is feasible or if you
need to know if a project is feasible, follow these steps. In our Media Galley you will find an
example of a feasibility study for a client and a feasibility study template you can use to assist
you.

 Project Description – Identify the project name and purpose. Include details including
stakeholders, and end result expected.
 Goals – List long and short-term goals and what processes will be needed to achieve
those goals.
 Timeline – What will be the estimated time until project completion?
 Costs and Budgeting – Include all costs incurred for the project including the cost of the
feasibility study itself.
 Purpose – What purpose does the project have and whom will it benefit?
  Market Analysis – If applicable, will the market or market environment benefit from the
project. If so, list why.
 Resources – Identify all the resources both IT, technical, inventory, and human that will
be needed to complete the project.
 Project Process – How will the project flow? Include flow charts showing project stages.
 Management and Teams – Who will manage and who will work on scheduled tasks?
Will project management outsourcing be needed?
 Observations– Statements that do or don’t support the project should be included here. If
for a client, does the client have the finances to complete the project or are there
alternatives? If for a project or process, will it work and will it be beneficial?

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Outcomes of a Feasibility Study

Often, after the completion of a study, a determination may be made not to proceed with the
project. A good feasibility study sample will include:

 Project Problems – Does the study include risk or problematic areas that need to be
addressed and are they clearly identified?
 The Outcome – Ever study should identify the process, product, client request, and goal
and how they will affect the outcome; positively or negatively. Will outcomes be
beneficial or deterrent?
 Alternatives – Are possible alternatives available or suggested and researched?
 Assessment – The assessment part of your feasibility study should include risk
management and controls, solutions, if the project is feasible, and how the project should
be implemented.

Summing Up Feasibility Studies

For projects to be considered, especially if they are to undertake many resources including real
dollars, real time, and real effort, a feasibility study is essential prior to project initiation, project
scope, and initiation.

See the complete Bright Hub Guide to Project Initiation Process »

If a project appears overwhelming or requires much detail and analysis to get to even begin the
project, consider completing a feasibility study prior to the project and use the feasibility study
samples found in our Media Gallery.

If you're looking for more sample forms and downloadable templates, check out Bright Hub's
resource guide: Over 50 Free Project Management Templates and Sample Form
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Archive for the ‘Sample Feasibility Study’ Category.

A Project Feasibility Study on the Manufacture of an

Ergonomically Designed School Backpack
March 1, 2011, 8:33 am

Proposed Location: Paniqui Productivity Center, McArthur Highway, Samput, Paniqui,

Tarlac

Proponents: Russel D. Garcia, Kathleen E. Gonzales, Lara Joy T. Martinez, Jonelyn F.

Mendoza, Emmaloida H. Tabag

Degree: Bachelor of Science in Industrial Engineering

School: College of Engineering, Tarlac State University

Date: March 2003

Brief Description of the Project

The project proposes to manufacture an ergonomically designed school backpack, branded as

“Pack ‘Em All” It is a backpack aimed at helping elementary students to correct posture and
reduce stress on back and shoulder while carrying loaded backpack. The bag has properties
unique from other bag presently available. The aluminum places at the back portion of the bag
but it is not visibly seen and will serve as the back support. The aluminum is contoured to fit the
shape of the back. This will trigger the back straightening of the user. This will prevent the user
from slouching and eventually develop a good posture. It has a wider sling to have a greater
support. It has a waist support to sustain the lower part of the torso. It has more space inside to
cater to students who bring lots of school materials. The bag is ergonomically designed for the
ease and comfort to prevent backaches, shoulder pain and abnormal curve of the spine, thus
creating a good relationship between the bag and the user.

Summary of the Findings

A. Management Aspect

The product shall be pre-operated eight (8) months before the start of the operation. Partnership
shall be the type of business organization, and shall be composed of five (5) partners. The
organizational set up shall be in a line function. The business shall have an initial capital of Php
625,000 and Php350,000. The business shall be loaned from DBP.
The General Manager shall be the head of the organization. Under him is the Plant Manager
who shall be responsible on the production area, and has the overall control on the company
personnel, marketing of the product and even the allocation of budget for the company. Along
with him is a Secretary. Under the Plant Supervisor is the Human Resource Personnel; under
him are the Utility Man/Driver, Security Guard, and Janitor/Messenger. Next is the Quality
Control, under him is the Sewer, Machine Operator, Packager and Stockman. Next is the
Marketing and Sales Personnel, under him is the Purchaser Finally, the Finance Personnel, next
to him is the Accountant, who shall be classified as retainer, because he shall render service only
once every end of the month. The required personnel shall come from nearby places of the plant
and within Tarlac. As soon as the business normally operates, all benefits are to be given to all
employees. The company shall hire additional workers after six (6) years of operation, based on
the forecasted increase of plant capacity. They are to be paid at a minimum starting salary and
shall also increase to 10% annually.

B. Marketing Aspect

The proposed product is based on the idea that elementary students have a hard time in carrying
their things from school and that in the latter of their lives, they may experience back disorders if
not properly taught. The demand of the supply shall be based the total number of students from
Grade IV-VI, and the supply shall be based on the existing competitors in malls. A market share
of and 43.2% is available for the product. Pack ‘Em All’ is the brand name of the product and is
priced using Full cost pricing at the market at an amount of Php 682.75 inclusive of Value Added
Tax.

C. Technical Aspect

The bag is created for enhancing desirable human values such as increased comfort and
improved quality of life. The product will provide lumbar binder fitted to the body waist, which
will offer some trunk support through elevation on intra abdominal pressure and will serve to
remind us of proper posture. It will also provide back support for the spine. This support is
made up of 0.4 cm thick and 2.5 cm wide flat-bar aluminum material. Its height varies in three
different sizes, 12, 14 and 16 inches. This is based on the length of spine from Thoracic level 3
(T3) to lumbar Region five (L5) of our target market.

The manufacturing process is based on the usual process done by any bag manufacturing in the
province, which is by the use of high-speed electrical sewing machine. The molding process of
the aluminum back support is done by a hydraulic press. The whole production operation is
estimated to have a standard time of 353.2455 minutes, including pattern making. But in case of
mass production, this process will be eliminated and the total production time will be 104.8455
minutes or 1.75 hours.

The plant size or plant capacity is measures based on the machine used. The plant will have the
capacity of 10,080 units/day. The production schedule will be 10% of the average market share
every year to provide safety stocks in case any increase in demand arises.
The plant is located at Paniqui Productivity Center, Brgy, Samput, Paniqui, Tarlac. This
building is divided into two parts. The first part has already been leased and the proponents will
lease the southern part The building has a floor of 630 sq.m and has a monthly rental of Php
20.00 per square meter. It is a 4 1/2 drive from our suppliers and 30 minute away from our target
market. It is along McArthur Highway, which makes it accessible to public transportation.
Paniqui is known for its sewing business, so laborers with that particular skill will not be a
problem. Nearby towns could also provide manpower for the plant. The water requirements will
only be minimum and will be supplied by the Paniqui Water District. The power consumption
will be generated from the Tarlac Electric Corporation (TARELCO). The plant will not provide
toxic wastes. Only excess fabrics will the wastes, and these will be sold to some backyard
manufacturing that produce tokens and small purse for different occasions.

D. Financial Aspect

The current ratio or working capital ratio is one of the fundamental measurements of a
company’s liquidity. This measurement is computed by dividing the total current assets by the
total current liabilities.

For JR. JEK PARTNERS, the profit margin on sales means that for the year 2002, they
generated 6.66% of net sales. The decrease in the second year results from the inability of the
plant to shoulder the expenses incurred in the production. But in the succeeding years the
company recovers with the increase in the profit margin.

Another way of testing the profitability of the business is through the use of rate of return
wherein it measures the rate of return to the partner’s equity of JR JEK PARTNERS are 28.9%,
17.26%, 37.32%, 67.96% and 99.95% for the first, second, third, fourth, and fifth, respectively
ensure that the business is profitable.

With all other factors remaining constant, an increase in the partner’s equity will decrease in
return of equity.

For as long as the return of equity is greater than zero (0), the firm precisely earns income or, on
the hand, breaks even. Shortly stated, the firm operates in a favorable performance. Thus, the
project is financially feasible.

E. Social Desirability Aspect

The business enterprise is deemed to serve as a great contribution to the government’s effort in
raising revenues for its functions. These shall be in the forms of income tax, permits, licenses,
and other fees. The society will benefit as a whole because of its ergonomically design at the
customers comfort. Its design will help not to worry about their child’s posture when they grow
old. The introduction of the bag in the market will pave the way of the competitors to lower their
prices in order to maintain its competitiveness. The unemployment rate in the country will get
low because this will provide jobs for the families. In this light, the manufacturing of the bag
will attain its desirability and acceptance.
Tags: project feasibility study bag, sample project feasibility
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Sugar Mill Feasibility Study

March 2, 2009, 8:04 am

Name of the Enterprise

This proposed sugar mill shall be called as Sweet Sugar Incorporated, obviously sugar is sweet
and sweet is sugar. That’s why it shall be called as Sweet Sugar Incorporated.

Sweet Sugar Incorporated shall have its own plant located in Sitio Maguindong, Luakan,
Dinalupihan, Bataan.

The site was chosen because its strategic location, where the supplies of public and private
services are adequate and labor supply and raw materials are readily available.

Sources of Raw Materials

The plant shall have its own sugarcane plantation near the mill and the plantation shall be
adequate in land area that will produce the needed raw material for sugar.

Availability of Transportation

The plant site is strategically located in Sitio Maguindong, Luakan, Dinalupihan, Bataan where
transportation is not a problem. The plant is readily accessible to the workers. The finished sugar
can be readily delivered to the market.

Project Long Range Objective

The Sweet Sugar Incorporated shall stick to its obligation and responsibility to its consumers of
providing and producing the highest quality of sugar. No toxic materials shall be used or if there
is, it should be properly disposed. It also respond to the needs of the barangay where it is located
in order to help its progress.
The Sweet Sugar Incorporated shall be the number one product and supplier of high-grade sugar
throughout Luzon and its neighboring provinces, and if expansion is needed, it shall be done
without overlooking its primary objectives.

Mode of Financing

Financing shall come from the shares of the stockholders/owners of the Sweet Sugar
Incorporated. If ever the shares can’t cover up the expenses of constructing the plant before its
operation, the Sweet Sugar Incorporated shall apply for loans which will give the maximum
output for the plant.

When business is already in operation, its liabilities and loans shall be paid from the sugar
revenue

Market Study

As Bataan is situated geographically near the center of the Philippines, the finished product can
be easily transported to the neighboring provinces in the country. Manila, the leading distribution
center in the Philippines will be recipient of greater bulk of the product.

Analysis of Market Demand and Supply

Sugar is one of the primary commodities of the people, thus it is very important to have big
supply that will cover up the big demand for sugar. The establishment of this sugar mill will
greatly help our fellow Filipinos and most of all, our economy. This sugar mill will increase the
sugar supply in the market, thus lessening our importation of sugar which is more expensive in
cost.

Market and Marketing Strategy

Vigorous effort should be expanded to secure a market before a commitment is made to build a
sugar mill if it would be most desirable to have the financial participation of one or more major
users who can guarantee the purchase of substantial portion for the procedure production. During
the past years, several overtures were made in this direction which revealed the opportunities
existing.

Scale and Volume

The receiving of raw materials supply condition market potential and engineering should be
considered. It would have production line which represent 769,434 tons per unit day. The output
of the plant will depend on the production conditions.

Sugar Marketing Operation

The structure of general framework of market situation is already been said of the manner in
which selling, shipping, financing and all other commercial aspect of marketing are out inside
the general framework. These function rarely been described except by and for the specialist
concerned with them. They are the essential link, however, providing the customers with that
they want and the sugar industry with their income.

The successful selling of the product ultimately determine the prosperity of every one in industry
if it is not sold successfully all the efforts of the farmers, millers and readiness with their
employees and the most of business which supply and service them will suffer. The final
customers are their most important millions of housewives buying sweets or soft drinks not only
4 lbs. of sugar and tin of golden syrup but also the tin of jam.

Market Distribution

Pricing

Pricing should follow the established market prices and practices which in turn are determined
by the forces of demand and supply, however because of uncertainty of sugar during the start up
period, some prices concessions should be made in order to break into market. A suggestion that
is to 20% reduction from established market prices be affected on the first year output.

Consumer Surveys

Everyone is using sugar everyday, but assumed of sugar feeds are centrally as possible within the
area of cane fields, as this will facilitate the transportation of cane with less rolling stock and
other fixed charges for their department. Moreover, easy cane supply, so necessary for a
economical grinding, will secure to the factory.

The direction of the prevailing wind and its accessibility to the factory and dwelling should be
ascertained to avoid dust, ashes, smoke and odor of refuse going in wrong direction.

Healthy surroundings are paramount importance to the employees. Standing and deterioration
water must not be allowed near the factory.

Technical Study

Services Offered:

The proposed plant site at Sitio Maguindong, Luakan, Dinalupihan, Bataan offers a plentiful
supplies of water and power. The site offers adequate supply of water for growing sugarcane,
and power for the production of sugar. It also offers adequate supply of laborers, which is
considered more important than all the other factors, especially when skilled and unskilled
laborers are required.

Labor

Skills required
The company will hire Filipino larorers in sugar cane manufacturing. Laborers near the company
site and more preferable to the employees to insure promptness and can do overtime work when
needed Another important reason is that people from nearest place can easily transport with their
convenience since the company is small, the working force will be required from town itself or
its vicinity. The company on the other hand will give assurance to the workers like a good
working condition, facilities for a conductive maintenance of their health incentives and many
other benefits required by the labor code, plus benefits given by the company itself.

The Project Site

Sitio Maguindong, Luakan, Dinalupihan, Bataan was chosen the best region of all sugar
plantation in the Philippines due to its abundant supply of labor will not be difficult to achieve as
most barrio folk are quite hardworking and industrious. Another reason is because of availability
of raw materials and have favorable conditions. The plant would be erected near the national
highway which will enable the transportation of finished product to the opposite provinces of
course, sugar central will increase their yearly supply of sugar production thus helping the sugar
industry.

The determination where sugar cane factory is to be located is purely an agricultural one. So far,
it is referred t the tract of land which has to be adequate for growing sugar cane fr a period of
years and the location where climate condition and rainfall are much that successful crops to be
expected.

As Bataan is situated geographically near the center of the Philippines, the finished product can
be easily transported to the neighboring provinces.

Waste Disposal

The various waste materials produced by industries maybe classified generally as solids, gaseous
or liquid. Solid waste are directly related to a loud pollution gas liquid to air and water pollution,
although all of them have combined and interrelated effects on pollution.

Methods of Waste Disposal

1. Eliminate of source. The first approach to a waste disposal problem requires a careful attention
of the source of pollutants.
2. Recovery of waste products. Before deciding how to discard waste materials, the engineer
should always think for recycle, reuse or for sale.
3. Regulate how to fit dilution
4. Divert waste to other points
5. Waste treatment. – A very expensive process the recent encountered by the major cities of the
world due to smog problem and the question as due to how to dispose gaseous waste,
electrostatic precipitators, aggrometrators, washers and many other kind of equipment have been
used to remove atmospheric contaminants.
Disposal of solid waste materials on land is always a complicated problem, incineration and
burying are possible solution and the best is by recycling.

A judicious plant design eliminates a potential hazardous operations should be separated from
various plant facilities and sufficient protection is made, possible sources of fire by eliminating
all the unnecessary ignition sources such as flame, spark or heated material, welding, smoking,
static electricity and the spontaneous combustion of waste materials.

Chemicals can cause dangerous burns and accidents are bound to occur rotating sections of
equipments should be amply protected to prevent accidents.

Management Study

For Pre-operating Period:

During the pre-operating period, the stockholders are responsible to deal with some government
and private agencies to secure the necessary document and deal in financing institution for
financial needs of the project. These persons are the one to negotiate for the constructor. The
supplier of the materials and by the hired construction firm and the supervision will be integrated
with the said contract. Consultant shall be hired also to ensure the safety of the plant and to
supervise the installation of the equipment.

For Operating Period:

During the operating period, the stockholders handled the key position in the company. The
business is organized and incorporate with their respective holdings:

Board of Directors

- Chairman of the Board

- Member
- Member
- Member
- Maintenance and Material Director
- Company Accountant
- Sales Director
- Production Director

The company sees to it that hired accountant and supervision directors are all licensed by the
professional Regulation Commission (PRC) in their respective professions. All these persons
should have at least an experience in their respective jobs.

The company accountant is responsible for the books and the preparation of the company book
of accounts. He also prepares the payroll and he examines the financial status of the company.

The sales director will assists the selling and finding markets for the products.
The production director is responsible for the production in order to insure for good productivity
and minimize production or manufacturing costs.

The maintenance and materials director is responsible for the safety programs and maintenance
of the plant. He should set the guidelines and train workers about safety and accidents and be
able to continue the flow of the product even machine breakdown occurs, which are hindrance to
the company’s re-productivity programs.

Financial Study

Major Assumption

An industry like sugar mill requires a big capital. The stockholders shall provide the needed
capital for the establishment of the whole business. Funds shall be given for the purchases of the
necessary equipments and necessary materials for the construction of the building and for the
purchase of land.

In case that there is no sufficient fund, the company shall apply for loan in the bank which gives
the lowest interest. During operation, the company shall pay its obligation out its revenues.

Equipment cost less than P40,000,000.00. Building construction (payment for the labors
included) costs more than P20,000,000.00. Land (for the plant site and sugar cane plantation
costs P20,000,000.00. The stockholders shall produce a budget of not less than P80,000,000.00.

Socio-economic Study

Taxes and Restricting Law

Bataan offers the lowest tax rate for industries like sugar production, and the best of Bataan is,
they offer, provide government subsidy and help to the industries located in its territory.

Provincial and town legislation are also important. The sweet sugar laws are more stringent in
Bataan.

Sweet Sugar Incorporated will help boost the economic status of Dinalupihan, Bataan because it
will provide a great number of jobs for the unemployed folks in the area, thus, giving them more
opportunities in life.

Sweet Sugar Incorporated shall pay all its tax obligations on time.

This is a partial study of Engr. Eric Lanosa.

Tags: Feasibility Study, sugar mill

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