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7/25/2014 Feasibility report -basic concepts with example
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Feasibility report -basic concepts with example
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1. Feasibility Report By SHRINIVAS B. KOREWAR (ROLL NO:5) ABHIJEET B. BHOSALE(ROLL
NO:14)
2. What is feasibility study? A feasibility study is an analysis of the viability of an idea through a
disciplined and documented process of thinking through the idea from its logical beginning to its logical
end. Feasibility study is carried out in order to assess the viability of a new project It is primary and
most important thing in development of a project
3. Reasons to Do a Study Gives focus to the project. Narrows the business alternatives. Identifies
new opportunities. Identifies reasons not to proceed. Provides valuable information for go/no go
decision. Increases probability of business success by identifying weaknesses early. Provides
documentation that the idea was thoroughly investigated.
4. Types of feasibility Operational feasibility 1. Useful for identifying operational problems to be solved,
and their urgency 2. The PIECES framework P-Performance ,I-Information, E-economy , C-control
E-efficiency ,I-Information, S-services
5. Types of feasibility Market Feasibility 1. 2. 3. 4. 5. Determine facility needs. Suitability of production
technology. Availability and suitable of site. Raw materials. Other inputs
6. Types of feasibility 1. 2. 3. Financial/Economic Feasibility Estimate the total capital requirements.
Estimate equity and credit needs. Budget expected costs and returns Organizational/Managerial
Feasibility 1. Business Structure 2. Business Founders Environmental feasibility Environmental impact
and their assessment
7. Types of feasibility Legal feasibility 1. Is the project legally feasible? 2. Legal requirements.
8. Feasibility report A feasibility report is the results of a feasibility study. This report details whether or
not a project should be undertaken and the reasons for that decision. Report Content 1. 2. 3. 4. 5. 6. 7.
Introduction/Executive Summary Background outline of project Methodology/method of analysis
Overview of alternatives Conclusion Recommendation
9. Introduction/Executive summary 1. It state objective of the report and of the project 2. It should refer
Feasibility study 791 views
Feasibility report -basic concepts with example
by Abhijeet Bhosale, Working at Walchand College of Engineering, Sangli
on Oct 27, 2013

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terms of references 3. Also it should state the constraints within which it has been conducted 4.
Executive summary: This should concise summary of the major recommendations of the report within 6
pages so that it quickly understood by senior executive
10. Background Some feasibility reports may require some background discussion in order to make the
rest of the report meaningful to readers. Describe your proposed plan in sufficient detail state if it
worked elsewhere and how it was implemented Background on the Situation. For many feasibility
reports, you'll need to discuss the problem, need, or opportunity that has brought about this report.
11. Outline of system Outline of system involves description of project List type and quality of
product(s) or service(s) to be marketed. Outline the general business model (ie. how the business will
make money). Include the technical processes, size, location, and kind of inputs. Specify the time
horizon from the time the project is initiated until it is up and running at capacity.
12. Methodology It involves discussion on method of analysis for feasibility study Return on
Investment (ROI) analysis For comparing overall profitability ROI = Estimated lifetime benefits -
Estimated lifetime costs Estimated lifetime costs or ROI = Net Present value / Estimated lifetime costs
13. SWOT Analysis :STRENGTHS WEAKNESS MAINTAINING THESE STREGTHS OVERCOMING
THESE WEAKNESS What can do for maintain these strengths? What should I do to overcome these
weakness? OPPORTUNITIES THREATS TAKING ADVANTAGE OF THESE OPPORTUNITIES
OVERCOMING THREATS What can I do to take the advantage of these opportunities? What can i do to
overcome these threats?
14. Overview of alternatives Possible alternatives Sticking with the current system should always be
studied as one alternative Different business processes for solving the problems Different levels/types
of computerization for the solutions Advantages and disadvantages of the alternatives The major
possible alternatives should be discussed and compared using clearly defined criteria.
15. 1. Estimate Equity and Credit Needs Identify alternative equity sources and capital availability
Producers, Local Investors, Angel Investors, Venture Capitalists Identify and assess alternative credit
sources. Banks, Government (direct loans or loan guarantees), Grants, Local and State Economic
Development Incentives. Assess expected financing needs and alternative sources. Interest Rates,
Terms, Conditions, Etc.
16. 2. Cost and benefits evaluation It demonstrate how this proposal is feasible It involves discussion
technological feasibility, economic practicality, social desirability, and ecological soundness 1. 2. 3. 4. 5.
6. Examples of benefits cost reductions error reductions increased throughput increased flexibility of
operation improved operation better (e.g., more accurate) and more timely information.
17. Types of costs Development costs purchasing cost, Installation cost, operational cost
18. Conclusion The conclusions section of a feasibility is the restatement of the conclusions you have
already reached in the comparison sections. In this section, you restate the individual conclusions, for
example, which model had the best price, which had the best battery function, and so on. It must
untangle all the conflicting conclusions and somehow reach the final conclusion, which is the one that
states which is the best choice
19. Recommendation The final section of feasibility reports states the recommendation. The
recommendation section should echo the most important conclusions leading to the recommendation and
then state the recommendation emphatically. the basis for that judgment has to be stated somewhere in
the requirements section.
20. Structure of feasibility report
21. Example of feasibility report on Waste water system
22. Feasibility Report Executive Summary Includes principal / salient features of technical, financial
and administrative aspects of the project Introduction project genesis how idea of project originated?
- whether fits in development plan? organization of study scope and status of report
23. Project area and need for the project(background) Project area geographic, topographic,
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climatic, religious, cultural descriptions Population pattern estimation and analyze growth rate
estimate probable density of population Economic and Social conditions present living standards of
various groups identification of locations according to income levels housing conditions data on
education, literacy, unemployment etc.
24. Available water resources adequacy of surface and ground water w.r.t quantity and quality
development of water resources pollution problems Existing water supply system details (source,
capacity, area served, hours of supply, number of connections, rate etc.) of existing system Existing
drainage and solid waste systems Need for a project improvement, expansion new deficiencies of
existing system
25. Proposed project (water supply scheme outline) Details of the project rehabilitation of the
existing facility construction of new facility alternative designs selection of sources alternative
layouts of rising mains alternative sites of WTP & ESRs training schemes for O & M
consultancy services needed Components of project thoroughly described with necessary topo-
maps location maps technical information engg. design & drawings
26. Implementation schedule (CPM/PERT) Cost Estimates capital investment (for all
components) recurring cost (annual) Impact on the environment Institutional responsibilities
(Identification of organizations) approval funding implementation O&M
27. Financial plan Source of fund Interest on loan Recurring expenses Annual burden
28. Conclusion Summary of findings and results of FR Review of need Recommended alternative
scope, coverage and components Capital cost and tentative financing plan Urgency for
implementation
29. Recommendation Specify all action for completion Mention of detailed investigation, data
collection and operational studies
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