When you create a new and very large project, you can organize it in several phases to ensure greater reliability of completion. All these phases constitute the life cycle of a project. Components of a feasibility study
It should be noted that each company can create a project structure as it wants. There may be only two phases or seven or more. Let us know what would be the structure of a more effective feasibility study and how to carry it out.
What is the feasibility study?
The feasibility study is part of the first representative phase of a project, whether for a product, a service, a site, etc.
The study consists of exploring all the concepts of the project allowing to respond to the needs to be achieved: Quality, costs, deadlines …
The objective is :
- Point out the characteristics of the project
- Define the provisional program evaluating the technical and operational feasibility highlighting the critical elements of each objective (quality, costs, deadlines)
- Consolidate study opportunities Components of a feasibility study
- Present each concept studied with a feasibility file that estimates costs, deadlines and solutions
- Validate the feasibility of the project to initiate the research design .
Objectives of a feasibility study
For a project to be successful, three important factors must be taken into account
- Quality : Quality level required for the product / service
- Cost : Cost of product design, logistics, marketing, product sales price, etc.
- Deadlines : Design deadlines, delivery of a product to a client, etc.
Generally, a feasibility study for a project contains the following elements:
It presents the most important contents of the realization of the project.
Here, analyzes of the demand for the products or services of the project under study are carried out, as well as studies of the raw material requirements for processing, characteristics and prices of the product or service, problems in the marketing channels, etc. Components of a feasibility study
The amount of goods or services to be produced in the unit of time is determined, based on the technical quantity, market and location of the same.
Both the macro and the micro-location must be taken into account, as well as the aspects that influence the project, such as electricity, water, access roads, telephone, labor and market.
It refers to the technical elements of the project, such as: processes, raw material specifications, human resources, construction, plans and plant layout. Components of a feasibility study
The necessary resources are established for the implementation of the project. In investments, the resources determined in the engineering of the project are quantified in monetary amounts.
The different sources of financing should be sought, making comparisons and establishing the best sources for the project in question.
8-Income and Expense Budget.
The budget of income and expenses must be made during the useful life of the project, or while there are debts pending payment, and until their cancellation.
It consists of the technical, economic and social analysis of the project, it must be done with specialists in the areas. Mainly, there are two areas of project evaluation, being the private evaluation and the social evaluation. Components of a feasibility study
If, after all of the above, it is decided to start the project, the information collected must be updated, and the respective contacts begin to begin with the operation stage of the project.
11-Operation or Functioning of the Project.
This is the start-up of the project, it begins with the production of goods and / or services, distribution of the product, etc. With the beginning of this stage, the project is said to end, and the new production unit begins to function.
Structure of a feasibility study
You have to prepare a descriptive document that addresses the technical, quality, financial and calendar aspects of a project. This report should allow all stakeholders to understand the objectives and problems of the project, so that they can decide on its final validation. Components of a feasibility study
Regardless of the type of project, you must create a feasibility study that will help you to be successful in the development of a new product, service or provision, etc.
Many companies first do a pre-feasibility study , and then complete it with a feasibility or feasibility study.
The structure of a feasibility study is as follows:
- Definition of the complete program of the project (specifications: functional analysis, definition of the main and secondary characteristics of the project)
- Justify the project in economic and / or statistical and / or strategic terms, or with the help of a SWOT analysis .
- Prepare and justify the budget necessary to carry out the project.
- Evaluate the overall cost of the project: Estimated costs of operation, maintenance, storage, etc.
- Identify all limitations and regulatory standards by initiating a project risk analysis.
- Define a study, execution and commissioning calendar to estimate all phases and durations of the project (GANTT or PERT calendar)
- Provide all the necessary elements to understand the project
- Determine all possible impacts on your organization, operations, and resources.
- Identify and evaluate risks. Components of a feasibility study
These are the basic points of a feasibility study structure.
Who participates in structuring the study?
The project applicant is responsible for drawing up the structure of the study, although he may have a work team or resort to other areas that will have interference in the project, for example:
- The project manager,
- The person in charge of evaluating costs and making the financial justification,
- Those responsible for the affected entities
- The purchasing department for budgets
According to the project, all affected entities must validate the viability file before moving on to the next phase.
Having the structure of a feasibility study, we will move on to the next phase, the design and planning of the project. Components of a feasibility study
The design phase consists of choosing, among the concepts retained at the end of the feasibility study, the solution to be developed, specifying the requirements that must be respected.
However, you can keep hypotheses that have not been considered to keep a record of all the scenarios that have been considered for the realization of this project. This could also be useful in the case of having to evaluate the results.