PROJECT FEASIBILITYByDr. Ali SajidByDr. Ali Sajid

Education & Training "A person who graduated, yesterday and stops studying today is uneducated tomorrow."

Fear & Wisdom"To conquer fear is the beginning of wisdom."

(Bertrand Russell)

Feasibility 1.Viability of Idea

2. Analyzing Feasibility ( Possibility) of Proj-Possibility of Completion ? Will it be Successful

3.Reasonable likelihood - constraints Will Not prevent a proj from meeting key obj 4.Synonym: Achievability 5.Plng & Orgzg Procedure-To Ensure Proj is Effective -It will work.

FeasibilityReasonable likelihood that Constraints on

Time & Other Resources will not Prevent a Project from meeting its Key Objectives

What is Feasibility?Capable of being done, with means at Hand & Circumstances, as they are.

Purpose of a FS To help assess Viability of a business idea- Technically, Operationally & Economically

Feasibility Assessment?

Is the disciplined & documented process of thinking through

an idea from its Logical beginning to its Logical End.

This is to determine its Potential

to be a viable business given realities of the Economic & Social environment in which it will operate

Provide Client with a solid foundation upon which a project is built. FS Provides

Concept identification, Estimates of supportable market, Design parameters, Estimates, Revenue projectionsNet warranted investment.

Essentially Road map of proj

Process of Analysis

Identify problem oropportunitySet up feasibilitystudyDefine scope and objectivesCarry out different aspectsof the studyRecommend proceed/shelveEvaluatealternatives develop/buy

Scope StatementA written statement includes:Project JustificationProject ObjectivesMajor Deliverables Criteria: Project/ or Phase Successfully Completed

Project CharterFormally Recognizes Existence of a Proj Gives PMgr Authy to Apply Resources to Proj, Univ CharterProduct to be Delivered ?Refers to Business Need Proj is Addressings

Types of Feasibility

Technical FeasibilityManagerial FeasibilityEconomic FeasibilityFinancial FeasibilityCultural FeasibilitySocial FeasibilitySafety FeasibilityPolitical FeasibilityEnvironmental FeasibilityMarket Feasibility

Tech Feasibility- First systematicinvestigation of Proj Design Viability.Foundation of all other FS .- Assessment of a Proj Capabilities.-Investigation of Technical & Physical Para/mtrTF Reviews:-Technical Capability of HR -Capability of Available at Technical side

Foreign consultants Role -LDCs-Too rigid, & Advanced Tech Spec - Cannot be met by Country.

Question is Can it be built?

Technical Feasibility (TF)Anticipate Broader Problems with Questions: 1.Adequate Choice of Available Technologies for Alternative Design purposes, considering:a. Physical layoutb. Engineering design

c.Availability of raw materials? 2. Costs of Constructing & Operating P-Facilities - Svc a) Machinery, b ) Equipment, c) Spare Parts? 3. Manpower Req:a) From professional to labor b) locally available?c) Responses vary sector to sector

Technical Feasibility (TF) Contd..Primary task of TF is Blueprinting:a) Manpower Needs b) Resources, and Design

c) Provide Design Alternativesd)A Choice of Available Technologies, & Cost estimates for each alternative.

Admin/Managerial Study (AM S) Evaluates Strategy of company in C/ Out Proj Activities. Providing info & Guidelines-Used to improve overall Proj Admn.Project mgr in investigating team.

Examines 4 Components:

A. External linkages, b. Internal organization, c. Personnel, and d. Mgt plan

Economic Study (Econ S)

Examines a Proposed P-in terms of: Net Contribution to Industry /Economy & To society.

Address 3 Related Questions: P-Responsive to Urgent Present or Anticipated Econ/Social need? P-Planned Econ o/p Serve Intended Purpose?

3. Svc Proposed to be Performed by P- 4. Benefits - Justify P - Cost?

Economic Study (Ec S)

Reqs: Study of all of Econ Implications of P: a)Demand & Supply of All P- O/P. b)P- Ability to Inc employment c)P- Multiplier" Effects (-Inc Purchase of goodsEffect

d) Effect on inc PS Revenue (income tax, sales), e) use of Locally Available resources. Assess P- Net Contribution to Econ/social welfare of community. Comparison of Econ & Social Benefits-genrtd From P-Vs Costs of Construction & Ops. B > C Proj- Economically feasible. Profitability analysis is conducted.

Economic Feasibility (Econ F)Summary of Economic B/C of ProjExtent to which savings Passed on

Optimum timing of Proj Sensitivity AnalysisConsidering influence of variations of critical P/M discount rates,renergy cost, Construction costs, Tfc forecasts.

6. Conclusions as to Econ F or not

Financial Feasibility- Capability of Proj Org -Raise Funds to implement proposed proj(different from economic feasibilityCultural Feasibility- Compatibility of Proposed Proj vs cultural setup of Proj environmentSocial Feasibility- Addresses influences of P-on Social System in Proj Environment Safety Feasibility Considered in Proj Plang. Analysis if Proj Capable of Implementation & Oprtd Safely -Minimal Adverse effects on masses.

Environmental Feasibility- -Concern must be shown -Action must be taken to address any & all environmental concerns raised or anticipated-Mega Dams issues (Aswan Dam)- New Murree Proj

Political Feasibility Referred - Politically Correct Proj." Political considerations often dictate direction for a proposed proj More common in LDC

Proj Feasibility

Market Feasibility- Market Variability & impact on Proj. Not confused with Econ/ FMket needs analysis to view:a) Potential Impacts of Market DemandB) Competitive Activities, etc. c) Divertible" Mkt Share -Available