Oral Defense of the IE Feasibility Study

The Industrial Engineering Feasibility Study follows the format initiated by the
Development Academy of the Philippines that includes the following:
1. The Preliminary Section
a. Title Page
b. Approval Sheet
c. Preface
d. Acknowledgments
e. Table of Contents
f. List of Tables
g. List of Figures
h. List Annexes/Appendices
2. Introduction /Executive/Project Summary
a. Brief Description/Necessity of the Project
b. Marketing Study
c. Technical Study
d. Organization and Management Study
e. Financial Study
f. Socio-Economic Study
g. Recommendations/Conclusions
3. The Marketing Study
A. Brief Description of the Industry
1. Product Description, Users, Types, Brands
2. Market, Reason for Choice
3. Product Flow from the Manufacturers to the End Users, Critical Stage in
the Flow
4. Industry Prices and Mark-up
5. Competition Degree and How Handled
6. The Prospect of a New Firm in the Industry
7. The Critical Factors of Success and Failure of the Industry/Business
B. Demand Analyses
1. Demand Components
2. Steps in Obtaining Historical Demand
3. Assumptions
4. Historical Demand
5. Present Demand
6. Projected Demand
7. Analysis
B. Supply Analyses
1.
2.
3.
4.
5.
6.

Supply Components
Steps in Obtaining Historical Supply
Assumptions
Historical Supply
Present Supply
Projected Supply

7. Analysis
C. Supply and Demand Analyses
1. Gap Between Historical Consumption and Supply
2. Gap Between Current Demand and Supply
3. Gap Between Projected Demand and Supply
4. Analyses / Potential Market Share
D. Other Market Characteristics
1. Product / Brand Preferences
2. Buying Decisions
3. Frequency of Purchase
4. Buying Habits / Practices
5. Other Characteristics
E. Marketing Programs
1. Market Share
2. Marketing Strategies
2.1 Sales and Distribution Channel/Flow
2.2 Pricing Scheme / Mechanism
2.3 Sales Budget
2.4 Terms of Sale
2.5 Promotional Activities / Program
2.6 Advertisements
2.7 Personal Contacts to be Established
2.8 Quality Advantage in Terms of Better Technology
2.9 Product Packaging
2.10 Location / Geographic Advantage
2.11 Other Pertinent Marketing Strategies
F. Projections/Graphs/Computations
1. Graphical Method
2. Mathematical
2.1 Arithmetic Straight Line
2.2 Arithmetic Geometric Curve
2.3 Statistical Straight Line
2.4 Statistical Parabolic
4. The Technical Study
A. The Product
1. Product and Specs Description
(including weight, size, and other physical characteristics)
2. Principal Uses
B. Manufacturing Process
1. Reason for choice of Process
2. Process Description
3. Flow Process / Flowchart
4. Critical Factors in the Process
C. Production Schedule
1. Production volume per Specs
2. Total Production Volume
3. Production Schedule
D. Product Packaging
1. Specs and Description

2. Quantity Required
3. Availability/Suppliers
E. Raw Materials
1. Specs and Description
2. Materials Requirement
3. Availability of Suppliers
F. Manpower
1. Direct Labor Composition
2. Direct Labor Computation (based on standards)
G. Equipment / Other Facilities
1. Plant Machines and Equipment
1.1 Capacities
1.2 Quantity Requirement
1.3 Availability/Suppliers
2. Materials Handling
2.1 Capacities
2.2 Quantity Requirement
2.3 Availability/Suppliers
3. Transportation
3.1 Capacities
3.2 Quantity Requirement
3.3 Availability/Suppliers
H. Utilities
1. Electricity, Fuel, Water, etc.
2. Volume Requirement (daily, monthly, annually)
3. Reliability/Availability
I. Plant Location
J. Plant Layout (with building plans & bill of materials)
K. Quality Control/Housekeeping/Good Manufacturing Practices)
L. Waste Disposal
5. The Management Study
A. Form of Ownership
B. Organizational Structure/Chart
C. Qualifications and Job Description of Personnel
D. Salary Structure and Benefits
E. Pre-operating Period
1. Project Activities
2. Project Schedule
3. Gantt Chart
4. PERT-CPM
F. Company Policies
6. The Financial Study
A. Major Assumptions/Cost Schedules
1. Major Assumptions/Cost Schedules
2. Direct Materials Purchases
3. Direct Labor Cost
4. Overhead
4.1 Indirect Materials
4.2 Indirect Labor
4.3 Utilities
4.4 Depreciation

4.5 Repairs and Maintenance

4.6 Insurance
4.7 Others
5. Operating Expenses
5.1 Administrative and Marketing Staf
5.2 Utilities
5.3 Promotions
5.4 Supplies
5.5 Depreciation
5.6 Repairs and Maintenance
5.7 Insurance
5.8 Fuel and Lubrication
5.9 Taxes
5.10 Licenses/Registration, Others
6. Finished Goods Inventory
7. Selling Price and Sales Forecast
8. Accounts Receivable
9. Bad Debts Allocation
10. Miscellaneous/Unforeseen Cost
B. Total Project Cost
1. Pre-operating
1.1 Research and Development
1.2 Production Test Run
1.3 Acquisition of Fixed Assets
2. Working Capital Requirements
2.1 Direct Materials
2.2 Indirect Materials
2.3 Product Packaging
2.4 Direct Labor
2.5 Indirect Labor
2.6 Administrative and Marketing
2.7 Utilities
2.8 Office Supplies
2.9 Insurance
3.0 Incentives
C. Financial Statements
1. Cost of Goods Sold
2. Income Statement
3. Cash Flow
4. Balance Sheet
D. Financial Analyses
1. Test for Liquidity
1.1 Current Ratio
1.2 Quick Ratio
2. Test for Profitability
2.1 Profitability in Relation to Sales
a. Gross Profit Margin
b. Net Income to Total Assets
3. Capital Investment Ratio
3.1 Rate of Return
3.2 Payback Period
4. Break-even Analysis

7. Socio-Economic Study
8. Appendices
9. Resume
Suggested Strategy:
The group assigns one of their members to present the pertinent details, and
summary of a particular component of the study, preferably more knowledgeable on
that aspect, and will be ask by the panel after his/her delivery. If the presenting
member cannot answer the question, the panel may have the option to ask the other
members of the group. Other members may help the presenting member if it is
necessary. It should be noted that no questions will be made while the presentation
is going on. Questions must be made when the presentation of a component is
finish.