DBTC – IE17: FEASIBILITY STUDY

10 VIRTUAL CLASS HOUSE RULES:

1. Meeting room will be opened Ten (10) minutes before the scheduled start of class. The
allotted allowance is also the venue to address any untoward technical difficulties.

2. Attending the Virtual Class is just like attending an actual live class. LATE ATTENDEES
BEYOND 30 MINUTES WILL BE ADMITTED BUT NOT CONSIDERED COMPLETE. You cannot
leave the class for prolonged periods nor should you multi-task. You should also take
notes while the trainer is presenting.

3. The virtual class will be recorded. Please make sure to turn on you webcam as you need
to be seen for the entire duration of the class. Your virtual presence will be monitored for
attendance and completion purposes.

4. Be online 100% of the time. Any prolonged periods of interruption with the use of your
webcam, or with your internet connection, or prolonged absence in the virtual class will
invalidate your attendance. Since you are seen online, please wear decent attire.

5. Keep your microphone on mute. Turn this on only when you need to share something or
asked to speak by the trainer/ facilitator.

6. You will be asked to recite or take part in class as if you are inside an actual training room.
Wear a headset or mic for easier participation.

7. To express any concerns with the video or audio of the virtual class, send a private
message to the host who is the person assigned for video and audio support.

8. The public chat panel is used for questions and discussions related to the class topics and
is not a social forum. Please wait for the virtual host or trainer to answer your questions.

9. To ensure program completion, please complete any post-work or activities assigned to

the course.

10. If you are disconnected and can’t enter the virtual class, reach out to your training hosts
through Messenger.

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DBTC – IE17: FEASIBILITY STUDY

PART ONE: ALL ABOUT FEASIBILITY STUDY

I. WHAT IS FEASIBILITY STUDY?

Feasibility Analysis is an analytical program through which project manager determines

the project success ratio and through feasibility study project manager is able to see
either project will useful for us or not and how much time, it will take to get completed.

Feasibility Study represents the following:

1. Definition of a problem or opportunity to be studied

2. An analysis of the current mode of operation
3. A definition of requirements
4. An evaluation of alternatives
5. An agreed upon course of action.

II. BENEFITS OF FEASIBILITY STUDY:

Below are some key benefits of conducting a feasibility study:

 Improves project teams’ focus

 Identifies new opportunities
 Provides valuable information for a “go/no-go” decision
 Narrows the business alternatives
 Identifies a valid reason to undertake the project
 Enhances the success rate by evaluating multiple parameters
 Aids decision-making on the project
 Identifies reasons not to proceed

Apart from the approaches to feasibility study listed above, some projects also require
other constraints to be analyzed -

 Internal Project Constraints: Technical, Technology, Budget, Resource, etc.

 Internal Corporate Constraints: Financial, Marketing, Export, etc.
 External Constraints: Logistics, Environment, Laws, and Regulations, etc.

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DBTC – IE17: FEASIBILITY STUDY

III. 10 TYPES OF FEASIBILITY STUDY:

There are certain important types of a feasibility study which are as follow:

1. Technical Feasibility Study

2. Managerial Feasibility Study
3. Economic Feasibility Study
4. Financial Feasibility Study
5. Cultural Feasibility Study
6. Social Feasibility Study
7. Safety Feasibility Study
8. Political Feasibility Study
9. Environmental Feasibility Study
10. Market Feasibility Study

1. Technical Feasibility Study

 The engineering feasibility of the project

 Certain important engineering aspects are covered which are necessary for the
designing of the project
 The technical capability of the projected technologies and the capabilities of
the personnel to be employed in the project are considered.
 Technology transfer between cultures and geographical areas should be
analyzed.
 Productivity gain (or loss) and other implications are understood due to the
differences in fuel availability, geography, topography, infrastructure support
and other problems.

2. Managerial Feasibility Study

 Ascertained by certain key elements like employee involvement, demonstrated

management availability & capability and commitment.
 The managerial and organizational structure of the project is addressed -
ensures that the proponent’s structure mentioned in the submittal is feasible
to the kind of operation undertaken.

3. Economic Feasibility Study

 Feasibility of the considered project to produce economic benefits

 A benefit-cost analysis is needed
 Evaluated by breakeven analysis.
 Tangible and intangible facet of a project must be translated into the economic
terms.
 Economic feasibility is critical even when the project is non-profit in nature.

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4. Financial Feasibility

 Financial feasibility must be differentiated from economic feasibility.

 The ability of the project management to raise sufficient funds required to
implement the proposed project
 Additional investors and other sources of funds are considered by the project
proponents for their projects in many cases.
 In such situations feasibility, sources, soundness and applications of these
project funds may be a hindrance or inadequate budget.
 Other aspects of financial feasibility could include:
o Creditworthiness
o Loan availability
o Equity
o Loan schedule.
 The implications of land purchase, leases and other estates inland are also
reviewed in the financial feasibility analysis.

5. Cultural Feasibility Study

 The compatibility of the proposed project with the cultural environment of the
project
 Planned operations should be integrated with the local cultural beliefs and
practices in labor-intensive projects.

6. Social Feasibility Study

 The effect that a proposed project may have on the social system in the project
environment
 It may happen that a particular category of employees may be short or not
available as a result of ambient social structure.
 The influence on the social status of the participants by the project should be
evaluated in order to guarantee compatibility.
 It must be identified that employees in particular industries may have specific
status symbols within the society.

7. Safety Feasibility Study

 Another important aspect that must be considered in project

 Involves the analysis of the project in order to ascertain its capacity to
implement & operate safely with the least unfavorable effects on the
environment.
 Mostly in complex projects, environmental impact assessment is not properly
addressed.

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DBTC – IE17: FEASIBILITY STUDY

8. Political Feasibility Study

 The directions for the proposed project are mostly dictated by political
considerations.
 This is certainly correct for large projects with potential visibility that may have
important political implications and government inputs.
 For example, regardless of the merit of the project, the political necessity may
be a source of assistance for a project.
 On the other hand, because of political factors, valuable projects may face
uncontrollable opposition.
 An evaluation of the objectives of the project with the current objectives of the
political system is required in the political feasibility analysis.

9. Environmental Feasibility Study

 The environmental aspect is very crucial in making any potential project

successful or failed.
 In the very early stages of the project, this aspect should be considered.
 All the environmental concerns raised or forecasted should be addressed in
environmental feasibility
 Proper actions should be taken to cover relevant issues of the environment.
 The ability of the project to timely acquire the required permits, licenses and
approvals at a reasonable cost should also be included in this area.

10. Market Feasibility Study

 Market feasibility must not be mixed up with economic feasibility.

 Consideration in analysis:
o Influence of market demand
o Competitive activities
o Available market
 During the start-up, ramp-up and commercial start-up phases of the project,
possible competitive activities (local, regional, national and international)
should be analyzed for early contingency funding and impacts on the operating
costs.

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DBTC – IE17: FEASIBILITY STUDY

IV. 6 PARTS OF FEASIBILITY STUDY

The activities for preparing a Feasibility Study are generic in nature and can be applied to
any type of project, be it for systems and software development, making an acquisition,
or any other project.

There are basically six parts to any effective Feasibility Study:

1. Project Scope
2. Current Analysis
3. Requirements
4. Approach
5. Evaluation
6. Review

1. Project Scope
a. Define the business problem and/or opportunity to be addressed. "The problem
well stated is half solved"
b. The scope should be definitive and to the point - rambling narrative serves no
purpose and can actually confuse project participants.
c. It is also necessary to define the parts of the business affected either directly or
indirectly, including project participants and end-user areas affected by the
project.
d. The project sponsor should be identified, particularly if he/she is footing the bill.

2. Current Analysis
a. Define and understand the current method of implementation, such as a
system, a product, etc.
b. From this analysis, may discover that it only needs some simple modifications
as opposed to a major overhaul.
c. Strengths and weaknesses of the current approach are identified (pros and
cons).
d. Elements of the current system or product that may be used in its successor
thus saving time and money later on.
e. Without such analysis, this may never be discovered.

Analysts are cautioned to avoid the temptation to stop and correct any problems
encountered in the current system at this time. Simply document your findings
instead, otherwise you will spend more time unnecessarily in this stage (aka "Analysis
Paralysis").

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DBTC – IE17: FEASIBILITY STUDY

3. Requirements
a. Defined depends on the object of the project's attention. For example, how
requirements are specified for a product are substantially different than
requirements for others.
b. Each exhibits totally different properties and, as such, are defined differently.
How you define requirements for software is also substantially different than
how you define them for systems.
4. Approach
a. Represents the recommended solution or course of action to satisfy the
requirements.
b. Various alternatives are considered along with an explanation as to why the
preferred solution was selected.
c. In terms of design related projects, it is here where whole rough designs are
developed in order to determine viability.
d. It is also at this point where the use of existing structures and commercial
alternatives are considered (e.g., "build versus buy" decisions).
e. The overriding considerations though are:

 Does the recommended approach satisfy the requirements?

 Is it also a practical and viable solution?

5. Evaluation
a. Examines the cost effectiveness of the approach selected.
b. Begins with an analysis of the estimated total cost of the project.
c. In addition to the recommended solution, other alternatives are estimated in
order to offer an economic comparison.
d. For development projects, an estimate of labour and out-of-pocket expenses is
assembled along with a project schedule showing the project path and start-
and-end dates.
e. After the total cost of the project has been calculated, a cost and evaluation
summary is prepared which includes such things as a cost/benefit analysis,
return on investment, etc.
6. Review
a. All of the preceding elements are then assembled into a Feasibility Study
b. A formal review is conducted with all parties involved.
c. The review serves two purposes:
i. To substantiate the thoroughness and accuracy of the Feasibility Study
ii. To make a project decision; either approve it, reject it, or ask that it be
revised before making a final decision.
d. If approved, it is very important that all parties sign the document which
expresses their acceptance and commitment to it; If the Feasibility Study is
rejected, the reasons for its rejection should be explained and attached to the
document.

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DBTC – IE17: FEASIBILITY STUDY

V. CONCLUSION

It should be remembered that a Feasibility Study is more of a way of thinking as opposed

to a bureaucratic process. As the scope of the project grows, it becomes more important
to document the Feasibility Study particularly if large amounts of money are involved
and/or the criticality of delivery.

Not only should the Feasibility Study contain sufficient detail to carry on to the next
succeeding phase in the project, but it should also be used for comparative analysis when
preparing the final Project Audit which analyses what was delivered versus what was
proposed in the Feasibility Study. Feasibility Studies represent a common sense approach
to planning.

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DBTC – IE17: FEASIBILITY STUDY

PART TWO: WRITING FEASIBILITY STUDY

I. PRE-FEASIBILITY STUDY ASSESSMENT

Conduct pre-feasibility assessment
1. Define Goals – List social and financial objectives for enterprise / business
2. Find the deal breakers – Identify weaknesses / red flags and eliminate bad
business ideas through objective assessment
3. Decide – whether it is a promising idea

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DBTC – IE17: FEASIBILITY STUDY

a. Define Goals

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DBTC – IE17: FEASIBILITY STUDY

a. Find Deal Breaker

i. Market Opportunity

ii. Operational Feasibility

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DBTC – IE17: FEASIBILITY STUDY

iii. Financial Implications

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DBTC – IE17: FEASIBILITY STUDY

II. BUSINESS FEASIBILITY STUDY OUTLINE

Chapters
I. Introduction
II. Market Feasilibity / Aspect
III. Technical Feasilibity / Aspect
IV. Management Feasilibity / Aspect
V. Socio-Economic Feasilibity / Aspect
VI. Financial Feasilibity / Aspect
VII. Findings
VIII. Conclusion / Recommendation
IX. Bibliography
X. Appendix
*see separate file for detailed outline
III. SCHEDULE
*see separate file for detailed schedule
IV. FEASIBILITY STUDY WRITING GUIDELINES
1. Use A4 Paper GSM 80
2. Minimum 2 copies book bind output and electronic copy for final and approved thesis
(School and Personal Copy)
3. Use provided outline or template for heading, chapters, sections, and subject matter
4. Observe proper hierarchy and style in writing using Microsoft Word or any equivalent
5. Monitor and ensure compliance to the provided timeline / schedule
6. Follow APA Formatting Basic Format –
a. All text are single-spaced instead of double-spaced as per standard
b. Use one-inch margin on all sides
c. All paragraphs in the body are indented
d. Use 12-point “Calibri, Tahoma, or Arial” font throughout
e. All pages should be numbered in the upper right hand corner
f. Place “Running Head” in the upper left hand corner
g. Follow standard bibliography – showing of references
h. Guides:
i. https://www.scribbr.com/apa-style/format/
ii. https://www.easybib.com/guides/citation-guides/apa-format/#checklist
iii. https://www.sciencebuddies.org/science-fair-projects/science-
fair/writing-a-bibliography-apa-format
iv. https://www.cleverism.com/conduct-feasibility-study-right-way/
7. Proof-read you output in advance. May use https://app.grammarly.com/
8. For real time collaboration and document sharing. https://trello.com/en
9. File Naming Convention: FS_Group(A/B)_[dd/Month/yy]_[File]_[Version No].*filetype
E.g.: FS_GroupA_12JAN21_Thesis_1.pdf, FS_GroupB_12JAN21_Data_2.doc

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