SAMPLE FORMAT OF A PROJECT FEASIBILITY STUDY

I. INTRODUCTION
A. Summary of the Project/Brief Description of the Project
B. Statement of the Problem
(Note: at least 4 SOP’s to relate to the 4 aspects of FS: Management,
Marketing, Technical, and Financial Aspects)
II. METHODOLOGY
III. RESULTS AND DISCUSSION
1. MANAGEMENT ASPECTS
A. Type of Organization
B. Organizational Structure
C. Officers of the Business and their Qualifications
2. MARKETING ASPECTS
A. Market Description – a brief description of the market to include the following
1. Areas Geographical Coverage
2. Methods of Transportation and Existing Rate of Transportation
3. Channels of Distribution and General Trade Practices
B. Demand
1. Past consumption
2. Major Consumers of the Products
3. Projected Consumption
C. Supply
1. Past supply broken down as to source whether imported or locally
produced; for imports, specify form in which goods are imported, price and
brand; for locally produced, the companies producing them, their
production capacities, brands and market shares shall be specified.
2. Factors affecting trends in past and future supply
D. Competitor’s Marketing
1. Description of the present marketing practices of competitors
E. Project’s Marketing Program

This study source was downloaded by 100000849960954 from CourseHero.com on 08-01-2022 09:38:44 GMT -05:00

https://www.coursehero.com/file/83040391/Sample-Format-of-a-Project-Feasibility-Studydocx/
 1. Proposed marketing program of the project describing the product, pricing,
channels of distribution, and promotion strategies, etc. Including the
selling organization, the terms for sales, packaging, location of sales
outlets, transportation, and warehousing arrangements
2. Budget
F. Projected Sales
1. Expected annual volume of sales for the next five years considering the
demand, supply, competitive position and proposed marketing program
2. Sales contracts, if any
G. Contribution to the Economy
1. Net annual amount of pesos earned or saved, and basis used
2. Labor employed
3. Taxes paid

3. TECHNICAL ASPECTS
A. Product
1. Description of the product(s) including specifications relating to their
physical, mechanical and chemical properties
2. Uses of the product(s)
B. Manufacturing Process
1. Description of the process showing detailed flow charts indicating material
and labor requirements of each step, and the normal duration of the
process
C. Plant Size and Production Schedule
1. Rate annual and daily capacity per shift, operating days per year,
indicating factors used in determining capacity
2. Expected production volume for the next five years considering start-up
and technical factors
D. Machinery and Equipment
1. Machinery and equipment layout, indicating floor plan

This study source was downloaded by 100000849960954 from CourseHero.com on 08-01-2022 09:38:44 GMT -05:00

https://www.coursehero.com/file/83040391/Sample-Format-of-a-Project-Feasibility-Studydocx/
 2. Specifications of the machinery and equipment required indicating rated
capacity
3. List of machinery and equipment to be purchased and origin as to local or
imported
4. Quotations from suppliers, machinery guarantees, delivery dates, terms of
payment, and other arrangements
5. Comparative analysis of alternative machinery and equipment in terms of
cost, reliability, performance and spare parts available
E. Plant Location
1. Location map showing plant location
2. Desirability of location in terms of distance from the source of raw
materials, markets and other factors; comparative study of the different
locations indicating advantages and disadvantages (if a new project)
F. Plant Layout
1. Description of plant layout, drawn to scale
G. Building and Facilities
1. Type of building and cost of erection
2. Floor area involve
3. Land improvement such as roads, drainage, etc. and their respective
costs
H. Raw Materials
1. Description and specifications relating to their physical, mechanical, and
chemical properties
2. Current prospective costs of raw materials; terms of payment and long
term contracts, if any
3. Availability/continuity of supply and current and projected sources
I. Utilities
1. Electricity, fuel, water, steam and supplies indicating the uses, quantity
required, balance availability, sources and costs
J. Waste Disposal
1. Description and quality of waste to be dispose of

This study source was downloaded by 100000849960954 from CourseHero.com on 08-01-2022 09:38:44 GMT -05:00

https://www.coursehero.com/file/83040391/Sample-Format-of-a-Project-Feasibility-Studydocx/
 2. Description of the waste disposal method
3. Methods used in other plants
4. Costs of waste disposal
5. Clearance from proper authorities or compliance with legal requirements
K. Labor Requirements
1. Detailed breakdown of the direct and indirect labor and supervision
required for the manufacture of the product(s) indicating compensations
including fringe benefits.
L. Production Costs
1. Detailed breakdown of production costs, indicating the elements of cost
per unit output.
4. FINANCIAL ASPECTS
***For Existing Projects***
A. Audited financial statements (balance sheets, income statements, cash flow)
for the past three years to reflect the following:
1. Aging receivables
2. Schedule of fixed assets showing capitalized cost, estimated useful life,
and depreciation method used
3. Schedule of liabilities
4. Financial trends and ratio analysis
5. Elements of production, selling, administrative, and financial expenses
B. Financial projections for the next five years (income statement, cash flow, and
balance sheet)
C. Supporting schedules to the financial projections stating assumptions as to:
1. Collection period of sales
2. Inventory levels
3. Payment period of purchases and expenses
4. Elements of production cost, selling, administrative and financial expenses
D. Financial analysis to show the rate of return on investments, return on equity,
breakeven volume, and price analysis.

***For New Projects***

This study source was downloaded by 100000849960954 from CourseHero.com on 08-01-2022 09:38:44 GMT -05:00

https://www.coursehero.com/file/83040391/Sample-Format-of-a-Project-Feasibility-Studydocx/
 A. Total project costs
B. Initial capital requirements
C. Pre-operating cash flows relative to the project timetable
D. Financial projections for the projected five years of operations to include
balance sheets, income statements, and cash flows
E. Supporting schedules to the financial projections to include:
1. Collection period of sales
2. Inventory levels
3. Payment period of purchases and expenses
4. Elements of production costs, selling, administrative and financial
expenses
F. Financial analysis showing return on investments, return on equity, breakeven
volume, and price analysis.
IV. CONCLUSION AND RECOMMENDATIONS
V. REFERENCES

This study source was downloaded by 100000849960954 from CourseHero.com on 08-01-2022 09:38:44 GMT -05:00

https://www.coursehero.com/file/83040391/Sample-Format-of-a-Project-Feasibility-Studydocx/
Powered by TCPDF (www.tcpdf.org)