IE 52 - Project Feasibility Study

10:30am – 3:30am (1st Semester 2017) CHAPTER 3. TECHNICAL FEASIBILITY

I. Product Description
 Features of the Product
 Physical Characteristics
Project Feasibility Outline:  Uses of the Product
 Pictorial View of the Product
CHAPTER 1. INTRODUCTION  Assembly Drawing
Project Summary  Exploded Drawing
Product Description II. Raw Materials
 Core Product  Bill of Material
 Actual Product  Description of Raw Materials
 Augmented Product  Alternative Raw Materials
Industry Assessment  Availability of Raw Materials
 Prospect  Suppliers of Materials
 Threats  Direct Material
 Opportunities  Indirect Material
Rationale  Material Requirements
III. Manufacturing Processes
CHAPTER 2. MARKETING FEASIBILITY  Process Detailed Description
I. General Assessment of the Target Market  Flow process chart
II. Target Market Segmentation  Assembly process
 Market Segmentation  Flow Diagram
 Market Targeting  Alternative Processes
 Market Positioning  Reasons for the Chosen Processes
 Selection of Respondents  Quality Control
 Purpose of the Survey Questionnaire  Attribute and Variable of the
 Survey Results, Summary and product requiring control
Conclusion  Methods of controlling
III. Demand Analysis attributes and variables
 Demand Assumptions  Inspection points
 Demand Components  Rework Procedures
 Demand Computations IV. Plant Size and Production Schedule
 Demand Analysis  Production Schedule
IV. Supply Analysis  Production Capacity Plan
 Supply Assumptions  Design Capacity
 Supply Components  Effective Capacity
 Supply Computation  Factors Affecting Plant Size
V. Competitors’ Profile Determination
 Direct Competitors V. Machine Requirement and Specs
 Indirect Competitors  Primary Machines and Equipment
 Competitors’ Market Share  Auxiliary Tools and Equipment
VI. Gap Analysis - Demand vs. Supply  Material Handling Equipment
VII. Market Share Analysis  Vehicle
VIII. Marketing Strategy  Safety Gadgets and Sanitary Tools
 Distribution System  Repair and Maintenance for Machines
 Promotional Aspects and Equipment,
 Product Life Cycle  Availability of Spare Parts & repair
 Advertising Strategy Service
 Pricing Programs  Energy Requirement
IX. Evaluation  Provision for Expansion
  Office Equipment  Overhead Accounts
 Furniture and Fixtures  Fixed Asset Requirements
 Inventoriables  Land
VI. Manpower Requirement  Building
 Headcount Computation  Furniture’s and Fixtures
 Headcount  Vehicle
 Manned Capacity  Office Equipment
 Man-Machine Chart  Machineries and Equipment
 Line Balancing  Safety Gadget
VII. Human Resource Management  Material Handling Equipment
 Company Vision and Mission III. Loan Amortization
 Headcount for All Employees IV. Selling Price and Sales Forecast
 Job Description  Unit Cost & Unit Price
 Orientation and Training  Value of money discussion
 Performance Management and V. Sales Returns and Allowances
Appraisal VI. Finished Goods Inventory
 Compensation and Benefits VII. Accounts Receivable
 Contingency Plans VIII. Accounts Payable
VIII. Inventory Management IX. Bad Debts Allocation
 Inventory of Primary Materials X. Dividend Policy/Profit Sharing
 Inventory of Auxiliary Materials XI. Total Project Cost
 Economic Order Quantity (EOQ) XII. Working Capital Requirement
 Reordering Point XIII. Alternative Sources of Financing
 Safety Stocking XIV. Financial Statements
IX. Plant Location  Cost of Goods Sold Statement
 Alternative Sites  Income Statement
 Location Planning/Factor Rating  Balance Sheet
 Location Map  Cash Flow Statement
 Plant Site XV. Financial Analysis
X. Plant Layout  Financial Ratios
 Plant Layout  Liquidity Ratios
 Building Structure  Efficiency Ratios
 Longitudinal Section  Leverage Ratios
 Site Development Plan  Profitability Ratios
 Bill of Materials for the Building  Breakeven Point Analysis
Structure  Payback Period and or ROI
 Floor Plan with Flow of Production Computations
 Plumbing Layout  Sensitivity Analysis
 Electrical Layout XVI. Evaluation
 Utilities XVII. References
 Electrical Consumption Appendices
 Fuel Consumption List of Figures
 Telephone consumption List of Tables
 Gantt Chart of Pre-operating Activities
XI. Evaluation
XII. References

CHAPTER 4. FINANCIAL FEASIBILITY

I. Introduction
II. Major Assumptions
 Direct Materials
 Direct Labor