FEASIBILITY STUDY

Presented by
Asha Sara Sam & SHILPA ZACHARIAH

S2,mba

CONTENTS
• Introduction  Feasibility study  Objectives  Types of feasibility  Steps in feasibility study  Conclusion

. given the objectives of the problem and constraints. • Feasibility study has been conducted carefully .INTRODUCTION • Feasibility study is the second stage in the system development life cycle (SDLC). • The major objective of the feasibility study is to find out which is the most optimal solution to the problem.the chances of the system being a failure are very less.

The feasibility study phase is the one which gives answers to the following questions: • Is there a new and better way to do the job that will benefit the user? • What are the costs and savings of the alternatives? • What is recommended? .

OBJECTIVES • Presentation of alternative systems (candidate system ) • Evaluation of cost and savings for each alternatives • Comparison of various alternatives • Recommendation of the most suitable alternative .

TYPES OF FEASIBILITY • Economic feasibility – Cost benefit analysis • Technical feasibility • Behavioural feasibility .

COST /BENEFIT ANALYSIS • Cost /benefit analysis is performed to ascertain whether the costs in the system match with the benefits it will provide .

TYPES OF COSTS • Hardware costs • Personnel costs • Facility costs • Operating costs • Supply costs .

PROCEDURE OF COST/BENEFIT ANALYSIS • Identify the various costs and benefits pertaining to given project • Categorize the various costs and benefits for analysis • Select a method for evaluation • Interpret the results of evaluation • Take action .

Time taken for getting back the initial investment • Break-even analysis . • Payback analysis .METHODS OF EVALUATION • Net benefit analysis – difference between total cost and benefit • Present value analysis .calculating cost and benefit of system in terms of today's value.

3. 8. 2. Form a project team and appoint a project leader Prepare system flow chart Enumerate potential candidate systems Describe and identify characteristics of candidate systems Determine and evaluate performance and cost effectiveness of each candidate systems Weight system performance and cost data Select the best candidate system Prepare and report final project directive to management . 4. 5.STEPS IN FEASIBILITY STUDY 1. 6. 7.

FORM A PROJECT TEAM AND APPOINT A PROJECT LEADER • Future system users should be involved in the design and implementation • Complex studies require project team • Team consist of an analyst and user staff • Projects occupy a specific time period • The senior system analyst is appointed as project leader • A record is kept of the progress made .

outputs and dataflow in the existent system. • The flowcharts completed for detailed evaluation are .PREPARE SYSTEM FLOWCHARTS • Information oriented charts and data flow diagrams are reviewed • Brings up the importance of inputs.

ENUMERATE POTENTIAL CANDIDATE SYSTEM • Identifies the candidate systems that produces the outputs required • A transformation from logical to physical system models • Consideration of the hardware that handles the total system requirements .

source language.DESCRIBE AND IDENTIFY CHARACTERISTICS OF CANDIDATE SYSTEMS  A preliminary evaluation to reduce the team to a manageable number  Technical knowledge and expertise in hardware and software area are required  Description the shortlisted candidates is produced  Details like memory requirements. price etc are enlisted .

suppose systems A.For example . The description may include: CHARACTERISTICS A B C Memory required 120 KB 64KB 64 KB Source language Source code available Purchase items Purchase price Number installed till date Cobol yes Purchase (licence) Rs 56000 200 C++ no Purchase (licence) Rs 126000 157 Pascal no Purchase(licence) Rs 23000 31 .B&C have been shortlisted for a safe deposit application.

DETERMINE AND EVALUATE PERFORMANCE AND COST EFFECTIVENESS OF EACH CANDIDATE SYSTEM • Cost encompasses designing and installing the system • It includes training and updating the physical facilities • System performance criteria is evaluated against the cost of each system • Cost is determined when the benefits are tangible .

000-40.10.25.000-80000 1-2 days Rs 650/days 9 Months .EVALUATE PERFORMANCE AND COST EFFECTIVENESS OF EACH CANDIDATE SYSTEM CHARACTERISTICS Performance System accuracy 99% 97% 98% A B C Growth potential Response time less than 5 seconds User friendly Costs Development Training Operations Payback To 500KB To 250KB To 250KB Yes Menu driven Yes Command driven Yes Menu driven Rs.25.000 3-4 days Rs 500/days 3 Months Rs 65.000 1-2 days RS 700/days 4 Months Rs 1.500-1.

WEIGHT SYSTEM PERFORMANCE AND COST DATA • Assign a weighing factor to each evaluation criteria • Assign a quantitative rating to each criterion qualitative rating • Multiply the weight assigned to each category • Sum the score column for each candidate system .

SELECT THE BEST CANDIDATE SYSTEM • The system with the highest total score is the best system Evaluation criteria Performance System accuracy Growth potential Response time User friendly Costs Development Training Operations Payback Weighing factor A Rating Score Rating B Score Rating C Score 3 4 2 2 5 3 2 3 5 4 4 5 3 5 4 4 15 16 8 10 15 15 8 12 99 5 3 4 4 4 3 2 5 15 12 8 8 20 9 4 15 91 5 3 4 4 4 3 4 3 15 12 8 8 20 9 8 9 89 .

FEASIBILITY REPORT • Cover letter presents the report and indicates the nature. general findings and recommendations • Table of contents specifies the location of the various parts of the report • Overview of the purpose and scope of the product • System effectiveness and efficiency and operating cost are emphasised • Cost comparisons and preliminary cost estimates given • Suggests the most beneficial and cost effective system • Appendices all the memos and data compiled .

• The feasibility study starts with setting up of a team.CONCLUSION • The feasibility study is the second major phase in SDLC. • It evaluates all possible solutions and selects the optimum systems. It enumerates various candidate systems • The various characteristics of each system are evaluated and the systems are compared with each other • Weightage is given to various selection criteria • The optimum system with highest weightage system is selected .

i.Cont……………………… • A report on the study with suggestions for selecting a system is prepared • Cost/benefit analysis is conducted to determine if cost of a system are higher than its benefits • Present value system includes ascertaining the cost and benefits on the same time. . on present value • Payback analysis is done to find out when the project will provide benefits equal to initial investment .e.

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