I t feasibility study

Hiring of additional employees As mentioned above, a feasibility study is often at the core of launching a business. It can be the key to launching a successful start-up, as it helps to underline the future pain points and to determine whether the plan is viable in the first place. Overall, a feasibility study is the perfect tool for situations where the impact is likely to be big in terms of operational or economic significance.

I t feasibility study

I t feasibility study

Technical feasibility[ edit ] This 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. A brief description of the business to assess more possible factors which could affect the study The part of the business being examined The human and economic factor The possible solutions to the problem At this level, the concern is whether the proposal is both technically and legally feasible assuming moderate cost.

It is an evaluation of the hardware and software and how it meets the need of the proposed system [9] Method of production[ edit ] The selection among a number of methods to produce the same commodity should be undertaken first. Factors that make one method being preferred to other method in agricultural projects are the following: Availability of inputs or raw materials and their quality and prices.

Availability of markets for outputs of each method and the expected prices for these outputs. Various efficiency factors such as the expected increase in one additional unit of fertilizer or productivity of a specified crop per one dunum. Production technique[ edit ] After we determine the appropriate method of production of a commodity, it is necessary to look for the optimal technique to produce this commodity.

Project requirements[ edit ] Once the method of production and its technique are determined, technical people have to determine the projects' requirements during the investment and operating periods. Determination of tools and equipment needed for the project such as drinkers and feeders or pumps or pipes …etc.

Determination of projects' requirements of constructions such as buildings, storage, and roads …etc. Determination of projects' requirements of skilled and unskilled labor and managerial and financial labor. Determination of construction period concerning the costs of designs and consultations and the costs of constructions and other tools.

Determination of minimum storage of inputs, cash money to cope with operating and contingency costs. The most important factors that determine the selection of project location are the following: Availability of land proper acreage and reasonable costs.

The impact of the project on the environment and the approval of the concerned institutions for license. The costs of transporting inputs and outputs to the project's location i. Availability of various services related to the project such as availability of extension services or veterinary or water or electricity or good roads Legal feasibility[ edit ] It Determines whether the proposed system conflicts with legal requirements, e.

Operational feasibility study[ edit ] Operational feasibility is the 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.

To ensure success, desired operational outcomes must be imparted during design and development.

Feasibility study - Wikipedia

These include such design-dependent parameters as reliability, maintainability, supportability, usability, producibility, disposability, sustainability, affordability and others.

These parameters are required to be considered at the early stages of design if desired operational behaviours are to be realised. A system design and development requires appropriate and timely application of engineering and management efforts to meet the previously mentioned parameters.

A system may serve its intended purpose most effectively when its technical and operating characteristics are engineered into the design.

Therefore, operational feasibility is a critical aspect of systems engineering that needs to be an integral part of the early design phases. 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.

Time 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.

I t feasibility study

It is necessary to determine whether the deadlines are mandatory or desirable. Other feasibility factors[ edit ] Resource feasibility[ edit ] Describe how much time is available to build the new system, when it can be built, whether it interferes with normal business operations, type and amount of resources required, dependencies, and developmental procedures with company revenue prospectus.

In case of a new project, financial viability can be judged on the following parameters: Total estimated cost of the project Financing of the project in terms of its capital structure, debt to equity ratio and promoter's share of total cost Existing investment by the promoter in any other business Projected cash flow and profitability The financial viability of a project should provide the following information: Rate of conversion to cash-liquidity i.

Project's funding potential and repayment terms. Sensitivity in the repayments capability to the following factors: Mild slowing of sales.A feasibility study also addresses such important issues as where (and how) the business will operate. If done properly, your feasibility will provide in-depth details about all the various components of your business in order to determine if it can succeed.

#3 Commercial feasibility. Commercial feasibility is an element of the study focused on the probability of commercial success. It’s mainly focused on studying the new business or a new product or service, and whether your organization can create enough profit with it.

A feasibility study is only one step in the business idea assessment and business development process (Information File C).

Reviewing this process and reading the information below will help put the role of the feasibility study in perspective. Evaluate Alternatives.

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#3 Commercial feasibility. Commercial feasibility is an element of the study focused on the probability of commercial success. It’s mainly focused on studying the new business or a new product or service, and whether your organization can create enough profit with it.

Jul 14,  · A feasibility study evaluates the project’s potential for success; therefore, perceived objectivity is an important factor in the credibility of the study for Author: Mukund. The Feasibility Study The Feasibility study is an analysis of possible alternative solutions to a problem and a recommendation on the best alternative.

It can decide whether a process be carried out by a new system more efficiently than the existing one.

How to Conduct a Feasibility Study the Right Way