por The feasibility describes how easy or difficult it can be to do something. When you set a goal at work, you think about the long-term feasibility of achieving what you want. Indicates whether it is worth investing in a project.
When you talk about the feasibility of a project, you are really discussing whether it can be achieved or not, how feasible is it? For example, if you wanted to question a man’s plan to paint his entire house in a single weekend, you would tell him that he should analyze the feasibility of that task. This will allow you to ask if it can be done or not.
In some cases, it may happen that a project is not feasible. There could be many reasons for this, including too many resources being required. This not only prevents those resources from performing other tasks, but also could cost the project more than what an organization would gain by taking on an unprofitable project.
[toc]
feasibility types
Technical feasibility
It is the evaluation of the technical requirements of a project or product in order to find out what technical resources it needs. It focuses on the hardware and software available to be used in a project.
The technical feasibility will not be completed until the same technical evaluation is carried out in the company, in order to establish that it has the technical capabilities to carry out the implementation of the project until its completion within the required time.
legal feasibility
It is evaluated if the project complies with the existing legal requirements for its implementation. An example would be if a new building meets the legal requirements, if the location was chosen properly and the authorities approve its construction.
It also addresses the ethical aspects of a project. For example, that a new plant dumps waste in a disrespectful way with the environment.
The project could also be a new company that is not covered by any law, so it must be verified.
operational feasibility
It determines how well the implementation of a project fits into the organizational structure of the company. The solution to a problem must fit as closely as possible to the organizational structure.
Scheduling feasibility before starting a project means asking the following questions: When is the project due? Are there legal obligations related to the schedule? Within what time is the project feasible? Are the deadlines achievable?
It is an assessment of the time required to deliver the product and whether the product will still be needed after that time.
economic feasibility
A study is conducted to see how long it would take the project to break even. It is similar to a cost-benefit analysis.
Every project has a cost, and it’s sensible to know when to expect returns. In addition, being able to anticipate the capital required to complete the project.
Feasibility study
It is an analysis that takes into account all factors relevant to a project, including economic, technical, legal, and implementation considerations, to determine the probability of successful project completion.
Project managers use feasibility studies to discern the pros and cons of undertaking a project before investing a lot of time and money in it.
It can also provide crucial information to an organization’s management, which could prevent the company from blindly entering risky deals. It is simply an assessment of the pragmatism of a proposed plan or project.
A well-designed feasibility study should provide the historical background of the business or project, a description of the product or service, financial statements, details of operation and management, market research, financial data, legal requirements, and tax obligations.
A feasibility study assesses the potential for success of the project. Thus, the perceived objectivity of the study’s credibility is an important factor for potential investors and lenders.
Goals
– Thoroughly understand all aspects of a project, concept or plan.
– Become aware of any potential problems that may occur while implementing the project.
– Determine if after considering all the significant factors the project is viable, that is, if it is worth undertaking.
These studies ask: Is this project feasible? Do you have the people, tools, technology and resources necessary for the project to be successful? Will the project provide the return on investment that is needed and expected?
Importance
Feasibility studies are important for business development. They allow a company to address where and how it will operate.
They can also identify possible obstacles to your operations, as well as recognize the amount of funds needed to establish the business.
These studies support marketing strategies that could help convince investors that it is a good choice to invest in a particular project.
Feasibility Examples
expansion of a university
An elite university in a Boston suburb had long wanted to expand its campus. However, he was continually postponing the project because management had some reservations about expanding.
The university also cared for the public opinion of the neighborhood, the original domicile of this university for more than a hundred years.
In the past, the community board had rejected similar development proposals. Finally, the university wondered if certain legal and political issues might affect its plan.
All of these unknowns and concerns were adequate reasons to proceed with a feasibility study, which the university eventually undertook. As a result, the school is now moving forward with its expansion plan, without the need to abandon its historic address.
If you hadn’t taken the time and effort to conduct a feasibility study, the university would never have known if its dream expansion could become a feasible reality.
expansion of a hospital
A hospital may conduct a feasibility study in order to expand; that is, add an extension to the building. The study will determine if the project should go ahead.
The people conducting the study will take into account labor and material costs. They will also take into account how disruptive the project may be to staff and patients.
The study may have to gauge public opinion regarding the new extension. Would the local community be for or against such a project?
It is important to determine how all stakeholders will respond. These are doctors, nurses, service personnel, patients, visitors to the hospital, and the owners of the hospital.
Those who carry out the study walk through all the pros and cons of the project. Then they weigh them against each other. Finally, they determine if it’s a good idea to go ahead.
References
Will Kenton (2019). Feasibility Study. Investopedia. Taken from: investopedia.com.
Vocabularies (2019). Feasibility. Taken from: vocabulary.com.
Wikipedia, the free encyclopedia (2019). Feasibility study. Taken from: en.wikipedia.org.
Simply Learn (2019). Why a Feasibility Study is Important in Project Management. Taken from: simplilearn.com.
Zindzy Grace (2019). Different types of feasibility study. Taken from: tuko.co.ke.
Market Business News (2019). What Is A Feasibility Study? Definition And Examples. Taken from: marketbusinessnews.com.