Feasibility study

A feasibility study is an analysis of how successfully a project can be completed, accounting for factors such as financial, operational, legal, and scheduling considerations. It is an evaluation and analysis of the potential of a proposed project, idea, or business venture to determine whether it is worth pursuing. The feasibility study assesses the project's potential for success by taking into account the various strengths and weaknesses of the project, as well as any potential risks that could affect the project's outcome.

A feasibility study is typically conducted at the beginning of a project in order to determine whether the project should be pursued. The study involves analyzing the project's objectives and goals, the resources needed to complete the project, and any potential risks or obstacles that could arise. Additionally, the study looks at the economic, legal, and technological feasibility of the project. If the project is deemed feasible, the study will also make recommendations for how the project should be implemented.

The purpose of a feasibility study is to provide decision makers with an analysis of the potential success of a project in order to make an informed decision. It is a critical step in the project management process that can save time and resources by providing a clear understanding of the project's potential benefits and drawbacks.

A feasibility study will typically include:

• An analysis of the project's objectives and goals
• An assessment of the resources needed to complete the project
• An evaluation of the potential risks and obstacles associated with the project
• An analysis of the economic, legal, and technological feasibility of the project
• Recommendations for how the project should be implemented

By providing an in-depth analysis of a project's potential success, a feasibility study helps decision makers make an informed decision on whether to pursue a project. It is an important part of the project management process that can save time and resources by providing a clear understanding of the project's potential benefits and drawbacks.

Example of Feasibility study

A feasibility study for a new restaurant might include an analysis of the local restaurant market, a review of the restaurant's proposed menu items and pricing, an evaluation of potential locations, a review of the restaurant's marketing strategy, and a financial analysis of the potential profitability of the venture. Additionally, the study would look at the economic, legal, and technological feasibility of the project, such as the cost of equipment and supplies and the availability of labor. Finally, the study would make recommendations for how the restaurant should be implemented, such as the equipment and staff needed and the timeline for opening.

When to use Feasibility study

A feasibility study should be conducted when a project is proposed or an idea is generated. It is an important step in the project management process that can save time and resources by providing a clear understanding of the project's potential benefits and drawbacks. Additionally, a feasibility study can help identify potential risks and obstacles associated with the project, as well as any legal, economic, or technological considerations. A feasibility study should also be conducted prior to making changes to existing processes or systems, in order to determine whether the proposed changes would be beneficial.

Types of Feasibility study

There are four main types of feasibility studies:

• Technical feasibility: This assesses the technical requirements of the project, such as the availability of the necessary equipment and software, as well as the skills and knowledge necessary to complete the project.
• Economic feasibility: This assesses the financial costs and benefits of the project, such as the cost of the project, the expected return on investment, and any potential risks associated with the project.
• Operational feasibility: This assesses the operational aspects of the project, such as the resources needed to complete the project, the timeline of the project, and any potential obstacles to the project's success.
• Legal feasibility: This assesses the legal aspects of the project, such as any potential regulatory or compliance issues, as well as any potential legal risks associated with the project.

A feasibility study is an important tool in the project management process that helps decision makers make an informed decision on whether to pursue a project. By providing an in-depth analysis of a project's potential success, the study can save time and resources by providing a clear understanding of the project's potential benefits and drawbacks.

Steps of Feasibility study

The following are the steps involved in a feasibility study:

• Establishing the purpose of the project: This involves gathering information on the project's objectives, goals, and scope.
• Analyzing the resources needed: This involves analyzing the resources that will be required to complete the project, such as personnel, equipment, and materials.
• Assessing the potential risks and obstacles: This involves looking at any potential risks or obstacles that could arise and how they could be mitigated.
• Analyzing the economic, legal, and technological feasibility: This involves assessing the economic, legal, and technological feasibility of the project.
• Making recommendations: This involves making recommendations for how the project should be implemented and any potential changes that should be made.

In conclusion, a feasibility study is an important part of the project management process that provides decision makers with an in-depth analysis of a project's potential success. It is a critical step that can save time and resources by providing a clear understanding of the project's potential benefits and drawbacks. The steps involved in a feasibility study involve establishing the purpose of the project, analyzing the resources needed, assessing the potential risks and obstacles, analyzing the economic, legal, and technological feasibility, and making recommendations.

Advantages of Feasibility study

• Helps decision makers make an informed decision on whether to pursue a project
• Provides an in-depth analysis of the project's objectives, goals, and risks
• Evaluates the economic, legal, and technological feasibility of the project
• Saves time and resources by providing a clear understanding of the project's potential benefits and drawbacks

The advantages of conducting a feasibility study are numerous. It provides decision makers with an analysis of the potential success of a project, including an evaluation of the project's objectives and goals, resources needed to complete the project, potential risks, and economic, legal, and technological feasibility. Additionally, it can save time and resources by providing a clear understanding of the project's potential benefits and drawbacks.

Limitations of Feasibility study

A feasibility study is not an exact science, and the results of the study can be affected by a variety of factors. The accuracy of the study depends on the quality of the data used, the assumptions made, and the experience of the individuals conducting the study. Additionally, the results of the study may not be reliable if the scope of the study is too narrow or does not take into account all of the factors that could affect the project. Finally, the results of the study may be inaccurate if the assumptions used in the study are too optimistic or pessimistic.

Other approaches related to Feasibility study

In addition to a traditional feasibility study, there are other approaches that may be used to assess the potential success of a project. These approaches include a cost-benefit analysis, a risk analysis, a break-even analysis, and a SWOT analysis.

• Cost-benefit analysis - This approach evaluates the potential costs and benefits of a project to determine if it is worth pursuing. It involves assessing both the potential and actual costs and benefits associated with the project.
• Risk analysis - This approach assesses the potential risks associated with a project and identifies strategies to mitigate those risks. It involves analyzing the potential risks that could arise and determining how to effectively manage those risks.
• Break-even analysis - This approach examines the point at which the project's costs and revenues are equal. It is used to evaluate the profitability of a project and to determine when a project is expected to become profitable.
• SWOT analysis - This approach evaluates the strengths, weaknesses, opportunities, and threats associated with a project. It is used to identify potential risks and opportunities and to make recommendations for how the project should be implemented.

Overall, there are a variety of approaches that can be used to assess the potential success of a project. By utilizing one or more of these approaches, decision makers can gain a better understanding of the project's potential benefits and drawbacks and make an informed decision on whether to pursue the project.

Feasibility study — recommended articles

Project business case — Business case development — Total cost of ownership (TCO) — Force field analysis — Managerial decision making — Software cost estimation — Go no go decision — Scenario analysis — Analysis of processes

References

• • • Bowen, D. J., Kreuter, M., Spring, B., Cofta-Woerpel, L., Linnan, L., Weiner, D., ... & Fernandez, M. (2009). How we design feasibility studies. American journal of preventive medicine, 36(5), 452-457. :: https://www.academia.edu/download/39621965/How_we_design_feasibility_studies20151102-16150-1nm7vqh.pdf
• Arain, M., Campbell, M. J., Cooper, C. L., & Lancaster, G. A. (2010). What is a pilot or feasibility study? A review of current practice and editorial policy. BMC medical research methodology, 10(1), 1-7.