An Example of Operational Feasibility Often, a feasibility study is not just considering the project as a whole; it also analyzes the

inside operations on how a deemed process will work, be implemented, and how to deal with change resistance and acceptance !uch is ascertained in the project"s Operational Feasibility Operational feasibility studies are generally utilized to answer the following #uestions$ Process How do the end-users feel about a new process that may be implemented? Evaluation Whether or not the process within the organization will work but also if it can work !mplementation "takeholder# manager# and end-user tasks $esistance Evaluate management# team# and individual resistance and how that resistance will be handled !n-House "trategies How will the work environment be affected? How much will it change? %dapt & $eview 'nce change resistance is overcome# e(plain how the new process will be implemented along with a review process to monitor the process change %f an operational feasibility study must answer the six items abo&e, how is it used in the real world' A good example might be if a company has determined that it needs to totally redesign the workspace en&ironment After analyzing the technical, economic, and scheduling feasibility studies, next would come the operational analysis %n order to determine if the redesign of the workspace en&ironment would work, an example of an operational feasibility study would follow this path based on six elements$ (rocess ) %nput and analysis from e&eryone the new redesign will affect along with a data matrix on ideas and suggestions from the original plans E&aluation ) *eterminations from the process suggestions; will the redesign benefit e&eryone' +ho is left behind' +ho feels threatened' %mplementation ) %dentify resources both inside and out that will work on the redesign ,ow will the redesign construction interfere with current work' -esistance ) +hat areas and indi&iduals will be most resistant' *e&elop a change resistance plan !trategies ) ,ow will the organization deal with the changed workspace en&ironment' *o new processes or structures need to be re&iewed or implemented in order for the redesign to be effecti&e'

Adapt . -e&iew ) ,ow much time does the organization need to adapt to the new redesign' ,ow will it be re&iewed and monitored' +hat will happen if through a monitoring process, additional changes must be made' (ulling %t All /ogether /he most important part of operational feasibility study is input0from e&eryone, especially when it affects how or what an organization does as far as processes %f the process were to build a new sports arena for a client, then a study determining how the arena will operate in a way that is conduci&e to its inhabitants, parking, human flow, accessibility and other elements is a good example of an operational feasibility study 1reate a sample operational feasibility study if you plan to change something inside the company that will affect how the organization runs or when a client asks you to explore a new product or process that will affect elements within their own organization 2earn more about how to create all types of feasibility studies through 3oe /aylor"s fi&e4part series on project feasibility studies

+hat Are /he -oot 1auses of (roject (roblems and Failure' 56 (roject Feasibility (rojects that suffer from a lack of a proper project management feasibility study generally o&erlook, or significantly underestimate, key success factors such as$ 7 /he technology, resources and8or funding re#uired to de&elop the project"s end product or ser&ice are underestimated or not a&ailable 7 /he forecasted market demand for the product or ser&ice is o&erstated 7 !uperior competing or alternati&e solutions are not identified or ignored 7 Ade#uate post4project funding is not a&ailable for operations, support and8or marketing 7 Extremely complex or difficult problems critical to project success are either not identified or are glossed o&er at project initiation Failed projects are those not canceled once their lack of feasibility is identified (olitical pressures result in spending good money after bad and the financial rule of 9forget sunk costs: is ignored %n other words, project sponsors should not consider the amount of money already spent on a project when assessing its &iability going forward ;othing can be done about the money already spent on a project /he only option is how much to spend going forward %f it is determined that the project is not feasible, then no more money should be spent, regardless of how much has already been spent

(oor project feasibility is mitigated by ensuring that the stakeholders" expectations for the project are reasonable One mitigating action is to follow a pro&en project methodology that includes a project management feasibility study, identification of solution alternati&es, and running cost8benefit8risk assessment on each For those projects de&eloping market products, it should include conducting competition, market demand, technology, regulatory and economic research with best, worst and most likely case analyses Another mitigating action re#uires that the project team identify the toughest design and de&elopment areas of the project to ensure that the re#uired resources and technology are a&ailable and make economic sense /o minimize the cost and time to achie&e an effecti&e feasibility study, a project management plan may include a solution 9proof4of4concept: and8or project pilot early in the project or program lifecycle Failure to show a feasible technical, economic and politically &iable solution should result in the #uick termination of the project !ituations that re&eal symptoms of a lack of project management feasibility study include$ 5 /he project was completed on time, on budget and on scope, and was still considered a failure because the final deli&erable<s6 did not produce the business justification originally planned %t did not produce the re&enues, cost reduction, or customer8employee satisfaction impro&ement to the extent laid out in the project benefit statement = /he project continues to expend resources e&en after it is ob&ious that the project cannot meet its objecti&es, and will ultimately fail > /he project is underfunded from the beginning ? /he project"s management expectations for scheduling, resources, and funding are unreasonable @ Alternati&e products and8or ser&ices pro&ide a better solution than the one created by the project A /he project"s actual production, operating, maintenance and8or ser&ice costs are significantly higher than originally forecasted By conducting an effecti&e project management feasibility study, companies can objecti&ely and rationally unco&er the strengths and weaknesses of an existing business or proposed &enture, the opportunities and flaws presented by the project en&ironment, the resources re#uired for smooth operation, and ultimately the prospects for success +ith a feasibility study, project management professionals can also help their companies determine whether a project can lead to success or is not worth the risk %f the study pro&es that a prospecti&e project is worth the company"s time, (C(s would determine the best way to de&elop and implement it, thus pre&enting the company from making costly mistakes that could jeopardize its reputation and capacity to operate smoothly /hrough a project management feasibility study, project management professionals can ensure that their company finds the most low4risk, high4reward in&estments that re#uire simple technical de&elopment and project implementation processes
Operational feasibility study is written after analyzing the technical, economic and scheduling studies. It should determine if the proposed project feasibility study will be implemented. It will measure the

proposed project if it can solve the current problems and satisfies the requirements identified during the analysis phase. During operational feasibility study, social issues, external and internal issues also analyzed including manpower problems, manager resistance, organizational difference, policies and rules, social acceptability, legal aspects as well as government regulations. Operational feasibility study always measure all aspects needed n operational feasibility study will determine if the proposed solution can be implemented without any hassle such as staffing. !hrough out the operation, anticipated operational ris" should be identified as well as positive result including customer satisfaction to weigh if the propose project or study will still pursue. In terms of computer upgrading or computer programs a solution, operational feasibility study is projected the proposed system if it can solve the current problems with the use of manual operation. #anagement or employee should also ready to accept the change. !he proposed system also measure if it can provide reliable services as well cost effective information including accurate reports and if really benefits the company. 1. Executive Summary: This should be short, to the point, yet still complete. If the banker cannot read the summary and understand the basics of the project the odds are that project will receive financing. This should contain: D Project purpose: What is the project and who is involved? D Repayment possibility: oes the study show the ability of the investment to be recovered over a specific time period? oes it give investment !cost" parameters? #an it convince bankers the investment is needed, even if it is marginally feasible? D Projected Financial Returns: What are the projected financial scale, the revenues, and the operating costs? What is net the income? D Economic Benefits: What are the $eturn on Investment !$%I" and the Internal $ate of $eturn !I$$" of the project? 2. The Financial Package Blueprint: The banker needs to clearly see what resources the group wants from the bank. The bank will re&uire information to calculate potential project risk and the bank's e(posure for any monies loaned to the group. They also want to know the financial commitment to the project from the members. This blueprint should contain the following elements: D #haracteristics of assets to be financed.

D )(pected rate of conversion to cash*li&uidity What is the project's funding potential and what repayment terms will be re&uired? D $isk evaluation data What are internal !yields, costs, etc" and e(ternal !inflation, energy, etc" project risks? What if the key assumptions are not perfect? What is the bank's e(posure? D )valuating )conomic #onse&uences o net reserves cover capital cost? oes the

plan keep the project from capital erosion?

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