ARC 372 Feasibility Studies of Urban Projects Lecture No. 6 Dr. Yasmeen Bakeer Fall 2023-2024Vv CANADIAN Technical cic Feasibility Studies ..: Background A technical feasibility study helps organizations determine whether they have the technical resources to convert the idea into a fully functional and profitable working system. It helps in troubleshooting the project before commencing work. The study identifies potential challenges and uncovers ways to overcome them. It also helps in long-term planning, as it can serve as a flowchart for how products and services evolve before they reach the market.CANADIAN Technical cle Feasibility Studies ..: Background * Technical feasibility helps determine the efficacy of the proposed plan by analyzing: “the process, “included tools, % technology, = material, *% Labor % logistics.ole sana Contents — Technical Feasibility Studies... * Background * How To Conduct A Technical Feasibility Study? * What To Include In A Technical Feasibility Study Report?> How To Conduct A Technical Feasibility Study i. ole canny Technical Bie IC fare Feasibility Studies ...“°" Conduct an initial analysis The initial analysis (preliminary analysis) helps decide whether the project is worth undertaking from an economic and time perspective. The two main areas of preliminary analysis include: Project outline + Technical and equipment accessibility Start by describing the project using + Evaluate if there are any barriers or factors the available details that hinder profitability, like; > Challenges in accessing raw material, The outline lists all the critical > expensive capital, elements like the target market, the >production costs that go over the expected goals and outcomes. prajected Competitive advantages of the > lack of the right If the preliminary analysis results show optimistic returns, you can proceed. _ 3.2024 project versus competitorsCANADIAN Technical CIC = Feasibility Studies ..: > Background + A technical feasibility study helps find the answers to the following questions: + Isit possible to develop the product with the available technology in the company? + Is the organization equipped with the necessary technology for project completion? + Are there technically strong employees who can deliver the product on time and within budget using the available technology? + Is there scope in the company's budget to add more technical resources? + Is the available technology the right choice to help the product team save time and complete development within budget? + Does the client require specific technology, or is the client open to developing the product, irrespective of the technology?Technical Feasibility Studies ..: > Background One of the most common types of feasibility studies. This is most often used in engineering projects, reviewing the various technical requirements of a project and identifying all the different aspects, including structural and civil. The capabilities of the available human resources and technologies are also considered, although the key areas of focus of a technical feasibility study are the software and hardware required. This type of study will also look at the projected timescale for completing the project and whether the available resources will make this timescale possible.CANADIAN Technical CIC mara Feasibility Studies ..: > How To Conduct A Technical Feasibility Study? 4. Prepare a business plan + A business plan explains the project in detail. + It outlines the raw material requirements and the planned product launch schedule and has a step-by-step plan on the expected costs at each step of the project and how to manage them. * The critical elements of the business plan include: + Executive summary * Organizational chart + Materials, supplies and equipment + SWOT analysis * Labor costs * Facility costs + Overheads, including utilities, taxes, and insurance * Marketing and merchandising costswhe CANADIAN Technical CIC Sars Feasibility Studies ..: >» How To Conduct A Technical Feasibility Study? 3. Doa market survey * Previous lecturevite CANADIAN Technical CIC Ss Feasibility Studies ..: >» How To Conduct A Technical Feasibility Study? 2. Calculate the estimated income * Work with the preliminary study results to predict the expected income that the product or service is likely to generate when sold in the target market. + Then calculate the overall cost of development that includes: + the expenses for manufacturing the product, + paying any debts taken for production + continuing regular business operations. + If the projected income is more than the overall cost of production, then you can proceed to the next step of the feasibility study.vhs CANADIAN Technical CLC tear aera Feasibility Studies ..: > What To Include In A Technical Feasibility Study Report? ae ob The scope of the project The technical requirements of the project The project approach Evaluation Final reviewwlll CANADIAN Technical CIC artirecrre: Feasibility Studies . > How To Conduct A Technical Feasibility Study’ 6. Review the data and decide * Compare the data you compiled in the previous steps to determine if the project is still feasible. + The review provides a clear picture of the overall risks and costs. + Ithelps decide whether it is technically feasible to commence work on the project. > Here are three questions to ask during the final review stage: * Does the feasibility study determine whether the project guarantees the minimum expected ROI (Revenue of Investment)? * Do the potential rewards (income, market share, scope of growth) outbalance the risks (monetary investment, energy, time)? * Does this project have growth potential? * If the answer is 'yes' to all three questions, you can arrive at the conclusion that the project is technically feasible and economically justifiable. Fall 2023-2024whe CANADIAN Technical CIC Serer earn Feasibility Studies . > How To Conduct A Technical Feasibility Study? 5. Build a day-one project balance sheet * The day-one project balance sheet lists the liabilities and assets of the project on launch day before it starts generating revenue. + Make sure to include the following: * assets like the project's initial capital investment, land, building and equipment * liabilities like rent, loan repayments and margins for receivables Fall 2023-2024 "1