PROJECT STUDY

Project Study
• Project Study is defined as a careful and
critical investigation and or examination of
a proposal, scheme, idea or of an specific
plan or design for the purpose of attaining
or achieving the desired goals or objectives
 Guidelines for an effective Project
Planning
• Project identification
• Project formulation, preparation and
feasibility analysis
• Project Design
• Project Appraisal
• Project selection, negotiation and approval
• Project activation and organizatio
• Project implementation and operation
• Project supervision, monitoring and control
• Project completion or termination
• Output diffusion and transition to normal
administration
• Project evaluation
• Follow up analysis and action
Process of Project Development
• Pre-Investment Phase
a. Project Identification
b. Project formulation or preparation
c. Project appraisal and financing
• Investment Phase
a. Project Implementation
b. Detailed project engineering
c. Project construction or installation
• Operational Phase
a. Project operation
b. Project evaluation
 Project Feasibility Study
Project feasibility study is the stage in
the project cycle which determines whether
project can and should be undertaken.
Feasibility study is a basic requirements to
determine the viability as well as economic
feasibility of the project.
 Feasibility study should include the
requirements of the proposed project with
respect to:
• Quantity
• Quality
• Specifications
• Specific estimate of the total project cost
• Detailed estimate of the production and
overhead costs for the proposed plant
based on the unit cost of each item.
 Basic Aspect of Feasibility Study

• Market study
• Technical Study
• Financial considerations
• Economic returns
• Operational Feasibility
 Other factors:
• Management aspect
• Social aspect
• Environmental considerations
• Choice of the most feasible alternatives
 Market Study
Market study requires assessment of
the past and present supply and demand
situations including their behaviors.
The main objective of market study is to
determine the extent of the goods and
services demand.
 Technical Aspect

This aspect answers the questions:

1. Is the project technically feasible?
2. How will the project be implemented?
 Financial Aspect
- deals with the commercial analysis
accruing to the project such as the
estimated profit of the project.It involves
the projection of expected revenues which
generates income and also its expected
expenditures determined by:
a. Projected cash flows
b. Profit and loss statement
c. Balance sheet
 Economic Return

The objective of this study if to ascertain

the desirability of the project in terms of its
net contribution to the economic and social
welfare of the people.
 Operational Feasibility

The project must be acceptable to the

leaders of locality and to the people whom
the project is intended for. Organization and
management system must be well organized
to effectively carry out the planned
undertaking.
 Management Aspect
Primarily deals with planning,
organizing, staffing, directing and control of
the project.
 Social Aspect
To be able to know how and what will be the effect of
the completed project in the society, here are some
questions to be considered:
1. Will it bring social upliftment in the
area?
2. Will it solve the unemployment
problem?
3. Will it bring social development to
the people for whom the project is intended?
Environmental Considerations
The effect of the project with respect to
the air, land and water resources should be
considered seriously.