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FEASIBILITY STUDY

BY:ADITYA SWAROOP RK1R17B34

WHAT IS FEASIBILITY STUDY ?

Something that is feasible is something that can be accomplished. Such a study is undertaken to determine the possibility or probability of either improving the existing system or developing a totally new one. A solution (system) is feasible if it is possible within the given context and is competitive with other potential solutions.

WHAT IS FEASIBILITY STUDY ?


Feasibility study is carried out to select the best system that meets the performance requirement. This includes identification, description, and evaluation of the candidate system and select the best system for the job.

FEASIBILITY STUDY

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2. 3.

Feasibility study needs to answer the following question: Is there a new and better way to do the job that will benefit the user? What are the cost and saving of the alternative? What is recommended?

HOW TO CONDUCT FEASIBILITY STUDY

Interview key personnel to get facts about the problems they are having or the changes and improvements they would like to see. Study any written procedures relative of the subject of the study before interviewing employees. Try to learn the informal (unwritten) procedures while interviewing and observing work flow.

Not only must the problem be defined, but its source must be determined.

HOW TO CONDUCT FEASIBILITY STUDY

Meet again with the involved line managers and go over the findings and conclusions. With managements agreement, finish the study by analyzing and estimating the costs of performing a full system study, the time and manpower as well.

REASONS TO CONDUCT FEASIBILITY STUDY

Gives focus to the project.

Narrows the business alternatives.


Identifies new opportunities. Identifies reasons not to proceed. Provides valuable information for go/no go decision. Increases probability of business success by identifying weaknesses early.

REASONS TO CONDUCT FEASIBILITY STUDY

Provides documentation that the idea was thoroughly investigated. Helps attract funding from lenders, grant providers, etc.

STEPS IN FEASIBILITY ANALYSIS


Feasibility
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analysis involve eight steps:

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3. 4. 5.

6. 7.

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Form a project team and appoint a project leader. Prepare system flow chart. Enumerate potential candidate system. Describe and identify characteristic of candidate system. Determine and evaluate performance and cost effectiveness of each candidate system. Weight system performance and cost data. Select the best candidate system. Prepare and report final project directive to management.

TESTING PROJECT FEASIBILITY

Preliminary investigation examine project feasibility. Three tests of feasibility:

Operational Technical Financial

OPERATIONAL FEASIBILITY

Organizations operating requirements.

This test of feasibility asks if the system will work when it is developed and installed. Are there major barriers to implementation.

OPERATIONAL FEASIBILITY

Is there sufficient support for the project from the management? From the users? Are current business methods acceptable to the users? Have the users been involved in the planning and development of the project? Will the proposed systems cause harm? Will it produce poorer results in any respect or area?

TECHNICAL FEASIBILITY

The technical issues usually raised during the feasibility stage of the investigation include these: Does the necessary technology exist to do what is suggested (and can it be acquired)?

Does the proposed equipment have the technical capacity to hold the data required to use the new system?

TECHNICAL FEASIBILITY

Will the proposed system provides adequate responses to inquiries, regardless of the number or location of users? Can the system be expanded if developed? Are there technical guarantees of accuracy, reliability, ease of access, and data security?

FINANCIAL AND ECONOMIC FEASIBILITY

Financial benefits must exceed the costs. The financial and economic questions raised by the analysts during the preliminary investigation are for the purpose of estimating the following: The cost to conduct a full systems investigation. The cost of hardware and software for the class of application being considered. The benefits in the form of reduced costs or fewer costly errors.

FEASIBILITY STUDY WRITTEN REPORT


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Define the problem in a way that clearly demonstrates your understanding of the problem. Clearly describe the subject and scope. State the objectives and whether you were met or not. Point out special attention areas, like unusual situations or interrelations between problems.

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Describe the entire system or study in details.

FEASIBILITY STUDY WRITTEN REPORT


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List all the economic cost comparisons and benefits. State recommendations clearly and explain the logic behind each.

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Provide a suggested time table for implementation of recommendations.


Include an appendix that shows any flowcharts, Data Flow Diagrams, graphs, pictures, floor plans or layouts not used elsewhere in the report.

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AFTER YOU WRITE THE REPORT

Finally, if management accepts your recommendations, the next task is: Drop the project, if it was not feasible, or implement the final solutions, if it is a simple fix, or embark on a complete system study.

Document your feasibility study well, because someone else may be assigned to the full system study.

HANDLING INFEASIBLE PROJECTS

Accepted or rejected

Reworked and resubmitted as new proposals


Workable part of the project combined with another feasible project

COST AND BENEFIT ANALYSIS

INTRODUCTION

Costbenefit analysis (CBA), sometimes called benefitcost analysis (BCA), is a systematic process for calculating and comparing benefits and costs of a project, decision. In CBA, benefits and costs are expressed in money terms, and are adjusted for the time value of money, so that all flows of benefits and flows of project costs over time (which tend to occur at different points in time) are expressed on a common basis in terms of their "net present value."

CBA HAS TWO PURPOSES:


To determine if it is a sound investment/decision (justification/feasibility), To provide a basis for comparing projects. It involves comparing the total expected cost of each option against the total expected benefits, to see whether the benefits outweigh the costs, and by how much

STEPS THAT COMPRISE A GENERIC COSTBENEFIT ANALYSIS

List alternative projects/programs. List stakeholders.

Select measurement(s) and measure all cost and benefits elements.


Predict outcome of cost and benefits over relevant time period.

STEPS THAT COMPRISE A GENERIC COST-BENEFIT ANALYSIS

Convert all costs and benefits into a common currency. Apply discount rate. Calculate net present value of project options. Perform sensitivity analysis. Adopt recommended choice