Scribd Logo
Upload

Welcome to Scribd!

  • 3K views

    Project Management Lecture Note 3 - Feasibility Study

    Uploaded by

    Sixd Waznine
    This document outlines the steps to conduct a thorough feasibility study from start to finish. It discusses generating project ideas, conducting initial screening and preliminary analysis to determine if the idea is promising. If so, the next steps are to plan the feasibility analysis and conduct technical, financial, economic, ecological and market analyses. Key areas of analysis include potential market size, technical viability, financial projections, risk assessment, social and environmental impacts. The goal is to determine if the project is worthwhile and funding should be pursued.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd

    Project Management Lecture Note 3 - Feasibility Study

    Uploaded by

    Sixd Waznine
    3K views22 pages
    This document outlines the steps to conduct a thorough feasibility study from start to finish. It discusses generating project ideas, conducting initial screening and preliminary analysis to determine if the idea is promising. If so, the next steps are to plan the feasibility analysis and conduct technical, financial, economic, ecological and market analyses. Key areas of analysis include potential market size, technical viability, financial projections, risk assessment, social and environmental impacts. The goal is to determine if the project is worthwhile and funding should be pursued.

    Original Description:

    PROJECT MANAGEMENT

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document outlines the steps to conduct a thorough feasibility study from start to finish. It discusses generating project ideas, conducting initial screening and preliminary analysis to determine if the idea is promising. If so, the next steps are to plan the feasibility analysis and conduct technical, financial, economic, ecological and market analyses. Key areas of analysis include potential market size, technical viability, financial projections, risk assessment, social and environmental impacts. The goal is to determine if the project is worthwhile and funding should be pursued.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    3K views22 pages

    Project Management Lecture Note 3 - Feasibility Study

    Uploaded by

    Sixd Waznine
    This document outlines the steps to conduct a thorough feasibility study from start to finish. It discusses generating project ideas, conducting initial screening and preliminary analysis to determine if the idea is promising. If so, the next steps are to plan the feasibility analysis and conduct technical, financial, economic, ecological and market analyses. Key areas of analysis include potential market size, technical viability, financial projections, risk assessment, social and environmental impacts. The goal is to determine if the project is worthwhile and funding should be pursued.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 22
    At a glance
    Powered by AI
    The key takeaways are that a feasibility study is a process used to analyze the viability of potential projects by considering technical, market, financial, economic, and other factors. It involves steps like generating ideas, initial screening, planning analysis, and evaluation.

    The main steps involved in conducting a feasibility study are generating ideas, initial screening, planning feasibility analysis, conducting market, technical and financial analysis, economic and ecological analysis, and evaluation.

    The key components of a market analysis are situational analysis and objectives, collection of secondary information, conducting a market survey, characterizing the market, demand forecasting, and market planning.

    How to Conduct Feasibility Study from A to Z

    by

    Dr. Suntoro Tjoe

    Feasibility Study for Project Success


    Kuala Lumpur, 11th September 2001

    Feasibility Study - A process of thought


    Generation of ideas

    Preliminary work Analysis Evaluation


    Conduct market analysis

    Initial screening

    Is the idea prima facie promising?

    No

    Terminate

    Yes
    Plan feasibility analysis Conduct technical analysis

    Conduct financial analysis Conduct economic and ecological analysis

    Is the project worthwhile?

    No

    Terminate

    Yes
    Prepare funding proposal

    Generation of ideas

    Brain storming SWOT analysis Analyze performance of existing schemes Analyze economic and social trends Study plan outlays and governmental guidelines

    Initial screening

    Compatibility with the promoter Consistency with governmental priorities Availability of inputs

    Adequacy of market
    Reasonableness of cost Acceptability of risk level

    Key Issues in Project Analysis


    Potential market Market share Technical viability Sensible choices Financial Analysis Risk Return Social cost benefit Other impact Ecological Analysis Environmental damage analysis Restoration measures

    Market Analysis

    Technical Analysis

    Economic Analysis

    Market Analysis 1. Situational analysis and specification of objectives


    Obtain general market opinion Formulate the objectives clearly and comprehensively

    2. Collection of secondary information


    National and economic information

    Industry-specific information

    Market Analysis (cont)


    3. Conduct of market survey

    Total demand and rate of growth of demand Demand in different segments of the market Income and price elasticities of demand Motives for buying Purchasing plans and intentions Satisfaction with existing products Unsatisfied needs

    Attitudes towards various products


    Socio-economic characteristics of buyers

    Market Analysis (cont) 4. Characterization of the market

    Effective demand in the past and present


    Breakdown of demand Pricing Method of sales and promotion Customers Supply and competition Government policy

    Market Analysis (cont) 5. Demand Forecasting


    Qualitative methods Time series projection methods

    Market Analysis (cont)


    6. Market planning

    Basic pricing
    Packaging Promotion Services

    Technical Analysis
    1. Location and neighborhood:

    proximity to key locations in metropolitan area,


    quality of surrounding environment, existing housing/other structures, schools, parks and recreational facilities, amenities, shopping, public improvements.

    Technical Analysis (cont)

    2. Size and shape 3. Accessibility and visibility 4. Site Conditions:


    slopes, vegetation, grading or fill required to build, existing structures, hydrology and drainage patterns, soil properties, sensitive land.

    Technical Analysis (cont)


    5. Legal constraints:

    utility easements, private easements, deed restrictions, covenants that run with the land.

    6. Utility:

    water, sewer, electricity, gas, telephone, cable television.

    Technical Analysis (cont)

    7. Zoning and regulatory environment:


    development climate, impact fee, future taking,

    future road,
    approval needed, citizen participation/opposition, approval process.

    Financial Analysis 1. Cost of project


    Land Building and

    civil works Plant and machinery Marketing Permits and fees Professional fees Financing fees Overhead Commissions Provision for contingency

    Financial Analysis (cont)

    2. Means of financing
    Share/equity capital Term

    loans

    Debenture capital Deferred credit Incentive sources Miscellaneous sources

    Financial Analysis (cont)

    3. Estimates of sales
    Setting-up correct pricing At

    pre-launch launching launching

    During

    Progress after

    Financial Analysis (cont)

    4. Working capital requirement and its sources


    Calculate

    the amount of required working capital


    possible sources

    Determine

    5. Break-even Point
    Break-even point = Fixed costs Selling price - Variable cost

    Financial Analysis (cont) 6. Projected cash flow statements 7. Projected balance sheets

    Economic Analysis

    Social cost benefit analysis Other impact

    Ecological Analysis

    Environmental damage analysis

    Restoration measures

    Appraisal Criteria
    Criterion Accept PBP < target period NPV > 0 IRR > cost of capital BCR > 1 Reject PBP > target period NPV < 0 IRR < cost of capital BCR < 1

    Payback period (PBP)


    Net present value (NPV) Internal rate of return (IRR)

    Benefit cost ratio (BCR)

    Thank You

    You might also like