Project Feasibility Study

Project Feasibility Study
Introduction
The growth and recognition of project management training have changed significantly over
the past few years, and these changes are expected to continue and expand.
It can be thrilling to start a complex, large-scale project with a significant impact on your
company.
A feasibility study is a comprehensive evaluation of a proposed project that evaluates all

factors critical to its success in order to assess its likelihood of success.
Business success can be defined primarily in terms of ROI, which is the amount of profits
that will be generated by the project.
As part of a feasibility study, the objective and rational analysis of a potential business or
venture is conducted to determine its strengths and weaknesses, potential opportunities and
threats, resources required to carry out, and ultimate success prospects.
Two criteria should be considered when judging feasibility: the required cost and expected
value.
In a feasibility study, a proposed plan or project is evaluated for its practicality. As part of a
feasibility study, a project or venture is evaluated for its viability in order to determine
whether it will be successful.
As the name implies, a feasibility analysis is used to determine the viability of an idea, such
as ensuring a project is legally and technically feasible as well as economically justifiable. It
tells us whether a project is worth the investment—in some cases, a project may not be
doable..
A well-designed study should offer a historical background of the business or project, such as
a description of the product or service, accounting statements, details of operations and
management, marketing research and policies, financial data, legal requirements, and tax
obligations. Generally, such studies precede technical development and project
implementation.
Key points of a feasibility study

A feasibility study in project management usually assesses the following
areas:
1. Technical capability: Does the organization have the technical resources to

undertake the project?
2. Budget: Does the organization have the financial resources to undertake the project,
and is the cost/benefit analysis sufficient to warrant moving forward?
3. Legality: What are the legal requirements of the project, and can the business meet
them?
4. Risk: What is the risk associated with undertaking this project? Is the risk worthwhile
to the company based on perceived benefits?
5. Operational feasibility: Does the project, in its proposed scope, meet the
organization’s needs by solving problems and/or taking advantage of identified
opportunities?
6. Time: Can the project be completed in a reasonable timeline?
Conducting a feasibility study

Anyone conducting a feasibility study will take several steps , include:
 Preliminary analysis: Before moving forward with the time-intensive process, many
organizations will conduct a preliminary analysis, which is like a pre-screening of the
project. The preliminary analysis aims to uncover insurmountable (too great to be
overcome) :obstacles that would render a feasibility study useless. If no major
roadblocks are uncovered during this pre-screen, a more intensive feasibility study
will be conducted.
 Define the scope: It’s important to outline the scope of the project so that you can
determine the scope of the feasibility study. The project’s scope will include the
number and composition of both internal stakeholders and external clients or
customers. Don’t forget to examine the potential impact of the project on all areas of
the organization.
 Market research: No project is undertaken in a vacuum. Those conducting the

feasibility study will delve into the existing competitive landscape and determine
whether there is a viable place for the project within that market.
 Financial assessment: The feasibility study will examine the economic costs related
to the project, including equipment or other resources, man-hours, the proposed
benefits of the project, the break-even schedule, the financial risks, and — most
importantly — the potential financial impact of the project’s failure.
 Roadblocks and alternative solutions: Should any potential problems surface

during the study, it will look at solutions for the project to go ahead successfully.
 Reassessment of results: A holistic look at the feasibility study with fresh eyes,
particularly if any significant amount of time has passed since it was first undertaken,
is essential.
 Final decision: The final aspect of a feasibility study is the recommended course of
action—in other words, whether the project should proceed or not.

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Project Feasibility Study

A feasibility study is a comprehensive evaluation of a proposed project that evaluates all

Key points of a feasibility study

1. Technical capability: Does the organization have the technical resources to

6. Time: Can the project be completed in a reasonable timeline?

Conducting a feasibility study

 Market research: No project is undertaken in a vacuum. Those conducting the

 Roadblocks and alternative solutions: Should any potential problems surface

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