PROJECT FEASIBILITY
By
Dr. Ali Sajid
By
Dr. 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”.
Feasibility
 Reasonable
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 ideaTechnically, 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.
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FS Provides
Concept identification,
Estimates of supportable market,
Design parameters,
Estimates,
Revenue projections
Net warranted investment.
Essentially Road map of proj
Process of Analysis
Identify
problem or
opportunity
Set up
feasibility
study
Recommend –
proceed
/shelve
Evaluate
alternatives –
develop/buy
Define scope
and
objectives
Carry out
different
aspects
of the study
Scope Statement
A written statement includes:
• Project Justification
• Project Objectives
• Major Deliverables
• Criteria: Project/ or Phase
Successfully Completed
Project Charter
•
Formally Recognizes Existence of a Proj
•
Gives PMgr Authy to Apply Resources to
Proj, Univ Charter
•
Product to be Delivered ?
•
Refers to Business Need Proj is
Addressings
Types of Feasibility
Technical Feasibility
Managerial Feasibility
Economic Feasibility
Financial Feasibility
Cultural Feasibility
Social Feasibility
Safety Feasibility
Political Feasibility
Environmental Feasibility
Market Feasibility
Tech Feasibility- First systematic
…
investigation of Proj Design Viability.
Foundation of all other FS .
- Assessment of a Proj Capabilities.
-Investigation of Technical & Physical Para/mtr
TF 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 layout
b.
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)
d)
Provide Design Alternatives
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 & GuidelinesUsed to improve overall Proj Admn.
Project mgr in investigating team.
Examines 4 Components:
A.
b.
c.
d.
External linkages,
Internal organization,
Personnel, and
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?
2. P-Planned Econ o/p Serve Intended Purpose?
3. Svc Proposed to be Performed by P4. 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
goods Effect
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 Proj
Extent to which savings Passed on
1.
2.
Optimum timing of Proj
Sensitivity Analysis
4.
5.
1.
2.
6.
Considering influence of variations of critical P/M
discount rates,renergy cost, Construction costs, Tfc forecasts.
Conclusions as to Econ F or not
Financial FeasibilityCapability of Proj Org -Raise Funds to implement
proposed proj
(different from economic feasibility
Cultural FeasibilityCompatibility of Proposed Proj vs cultural setup
of Proj environment
Social FeasibilityAddresses 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 FeasibilityMarket Variability & impact on Proj
.
Not confused with Econ/ F
Mket needs analysis to view:
a) Potential Impacts of Market Demand
B) Competitive Activities, etc.
c) “Divertible" Mkt Share -Available