Feasibility PEC

8/6/2019 Feasibility PEC

http://slidepdf.com/reader/full/feasibility-pec 1/22

PROJECT PROJECT FEASIBILITY FEASIBILITY

By Dr. Ali Sajid

By Dr. Ali Sajid



Education & Training

" A person whograduated,

yesterday and stopsstudying today is

uneducatedtomorrow."



Fear & Wisdom

"To conquer

fear is thebeginning of

wisdom."

(Bertrand Russell)





Feasibility

Reasonable likelihood thatConstraints on

³Time´ & Other ³Resources´

will notPr event a Pr o ject from

meeting itsKey Objectives



What is Feasibility?

Capable of being done,

with means at Hand &

Circumstances, as they ar e.

Pur pose of a FS ±

To help assess³Viability of a business idea-

Technically, Operationally & Economically´



Feasibility Assessment?

Is the disciplined & documented pr ocess of thinking thr ough

an idea f r om its ³Logical beginning

to its Logical End´.

This is to deter mine its Potential

to be a viable business

given r ealities of the Economic

& Social envir onment

in which it will operate



Pr ovide Client with a solid foundation upon

which a pr o ject is built.

FS Pr ovides

± Concept identif ication,

±Estimates of supportable market,

± Design parameters,

± Estimates,

± Revenue pr o jections

± Net warranted investment.

Essentially Road map of pr o j



Process of Analysis

Identifyproblem oropportunity

Set upfeasibility

study

Define scopeand

objectives

Carry outdifferent

aspectsof the study

Recommend ±

proceed/shelve

Evaluate

alternatives ±develop/buy



Scope StatementScope Statement

A written statement includes:

� Pr o ject Justif ication

� Pr o ject Objectives

� Major Deliverables

� Criteria: Pr o ject/ or Phase

Successf ully Completed

A written statement includes:

� Pr o ject Justif ication

� Pr o ject Objectives

� Major Deliverables

� Criteria: Pr o ject/ or Phase

Successf ully Completed





T ypes of Feasibility

Technical FeasibilityManagerial Feasibility

Economic Feasibility

Financial Feasibility

Cultural Feasibility

Social Feasibility

Saf ety Feasibility

Political Feasibility

Envir onmental Feasibility

Market Feasibility



«Tech Feasibility- First systematic

investigation of Pr o j 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 ³Can it be built?´



Technical Feasibility (TF)Anticipate Br oader Pr oblems with Questions:

1.

Adequate ³Choice of Available Technologiesfor Alter native 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





Admin/Managerial Study (AM S)

Evaluates Strategy of company in C/ Out Pr o jActivities.

Providing info & Guidelines-

Used to improve overall Proj Admn.

Project mgr in investigating team.

Examines 4 Components:

A. Exter nal linkages,

b. Inter nal or ganization,

c. Personnel, and

d. Mgt plan



Economic Study (Econ S)

Examines a Pr oposed P-in ter ms of:

Net Contribution to Industry /Economy& To society´.

Addr ess 3 Related Questions:

P-Responsive to ³Ur gent Pr esent or Anticipated

Econ /Social´ need?2. P-Planned Econ o /p Ser ve Intended Pur pose?

3. Svc Pr oposed to be Per for med by P-

4. Benef its - Justif y P - Cost?



Economic Study (Ec S) Reqs: Study of all of Econ Implications of P:

a) Demand & S upply of All P- O/P.b) P- Ability to Inc employment

c)P- ³Multiplier" Eff ects (-Inc Purchase of

goods Eff ect

d) Effect on inc PS Revenue (income tax, sales),

e) use of Locally Available resources.

Assess P- Net Contribution to Econ /social welf ar e 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)

1. Summary of Economic B/C of Proj

2. Extent to which savings Passed on

4. Optimum timing of Proj

5. Sensitivity Analysis

1. Considering influence of variations of critical P/M2. discount rates,renergy cost, Construction costs, Tfc forecasts.

6. Conclusions as to Econ F or not



Financial Feasibility-

Capability of Proj Org -Raise Funds to implement

proposed proj

(different from economic feasibilityCultural Feasibility-

Compatibility of Proposed Proj vs cultural setup

of Proj environment

Social Feasibility- Addresses influences ± of P-on Social System in

Proj Environment

Saf ety Feasibility

Considered in Proj Plang.

Analysis if Proj Capable of Implementation

& Oprtd Safely -Minimal Adverse effects on

masses.



Envir onmental 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 - ³Politically Corr ect Pr o j."

Political considerations often dictatedirection for a proposed proj

More common in LDC



Proj Feasibility «

Market Feasibility-Market Variability & impact on Pr o j

.

Not conf used with Econ / F

Mket needs analysis to view:a) Potential Impacts of Market Demand

B) Competitive Activities, etc.

c) ³Divertible" Mkt Shar e -Available

Documents

Feasibility PEC