Feasibility Studies
Dr. Muslim Suardi, MSi., Apt.
Faculty of Pharmacy
University of Andalas
Feasibility Studies
• “The study related with several aspects:
Law, Economic-Social & Culture,Market &
Marketing, Technical and technology,
manajement &finance.
• All of data is used for analysing and
decide what eve the business could be
builde, cancel or stop at all.
FS & Stake Holders
FS is needed by:
• Investor as initiator
• Bank as creditor
• Governement as fasilitator on regulation
The Importancy of FS by
Stake Holders
• Investor: responsible in profit to be gained
from investation,
• Bank: responsible for the credit savety &
dan kelancaran pengembaliannya
• Governement: benefit of investation on
macro economic, job oppurtunities, etc.
Feasibility Studies
FS Aim
to objectively & rationally uncover the
strengths & weaknesses of an existing
business or proposed venture,
opportunities & threats as presented by
the environment, the resources required to
carry through, & ultimately the prospects
for success.[1][2]
2 Criteria to Judge Feasibility
are cost required and value to be attained.[3]
As such, a well-designed FS should provide a
historical background of the business or
project, description of the product or service,
accounting statements, details of the
operations & management, marketing research
& policies, financial data, legal requirements &
tax obligations.[1]
Generally, FS precede technical development
& project implementation
5 Common Factors
• The acronym TELOS refers to the five
areas of feasibility:
Technical
Economic
Legal
Operational
Scheduling
1. Technology & System
Feasibility
• The assessment is based on an outline
design of system requirements, to
determine whether the company has the
technical expertise to handle completion of
the project.
Several Considerations
• A brief description of the business to
assess more possible factor/s which could
affect the study
• The part of the business being examined
• The human & economic factor
• The possible solutions to the problems
• At this level, the concern is whether the
proposal is both technically & legally
feasible (assuming moderate cost).
2. Economic Feasibility
• Economic analysis is the most frequently
used method for evaluating the
effectiveness of a new system.
• More commonly known as cost/benefit
analysis, the procedure is to determine the
benefits and savings that are expected
from a candidate system and compare
them with costs. If benefits outweigh costs,
then the decision is made to design and
implement the system.
Cost-Benefit Consideration
An entrepreneur must accurately weigh the
cost versus benefits before taking an
action.
Cost-based Study
• It is important to identify cost and benefit
factors, which can be categorized as
follows:
1. Development costs
2. Operating costs.
• This is an analysis of the costs to be
incurred in the system and the benefits
derivable out of the system.
Time-based Study
• This is an analysis of the time required to
achieve a return on investments. The
future value of a project is also a factor.
3. Legal Feasibility
• Determines whether the proposed system
conflicts with legal requirements, e.g. a
data processing system must comply with
the local Data Protection Acts.
4. Operational Feasibility
• Operational feasibility is a measure of how
well a proposed system solves the
problems, and takes advantage of the
opportunities identified during scope
definition and how it satisfies the
requirements identified in the requirements
analysis phase of system development.[4]
5. Schedule Feasibility
• A project will fail if it takes too long to be
completed before it is useful. Typically this
means estimating how long the system will
take to develop, and if it can be completed
in a given time period using some
methods like payback period.
Schedule Feasibility
• Schedule feasibility is a measure of how
reasonable the project timetable is. Given
our technical expertise, are the project
deadlines reasonable? Some projects are
initiated with specific deadlines. You need
to determine whether the deadlines are
mandatory or desirable.
Other Feasibility Factors
•
•
•
•
Market & real estate feasibility
Resource feasibility
Cultural feasibility
Financial feasibility