Mardee Allen Balde, RN

Mynard Richard G. Gadingan, RRT

Deyne Jireh T. Luza
Rhodora V. Toralba, RRT
FEASIBILTY STUDY
 is an analysis of the viability of an idea.
 is an analysis of all possible solutions to a problem and a
recommendation on the best solution to use.
 is a formal study to decide what type of system can be
developed which best the needs of the organization.
 A feasibility study is essentially a process for determining
the viability of a proposed initiative or service and
providing a framework and direction for its development
and delivery.
Key takeaways

• A feasibility study is an assessment tool that helps

determine if a proposed product, service or business
will be successful.
• The study considers many factors, including technical,
economic and legal, to evaluate the proposal.
• There are several types of feasibility studies to
consider based on the project.
• The study provides useful information for the next
steps after the study.
 WHAT IS FEASIBILTY STUDY?
A feasibility study is an assessment that determines the
likelihood of a proposed project being successful, such as
a new product line or technical system.
The study analyzes the project’s relevant factors, such as
technical, economic, and legal considerations, to assess
whether the project is worth investing.
The study can also identify potential issues and problems
arising from pursuing the project.
Feasibility studies also help companies with new
business development, including determining how it will
operate, potential obstacles, competition, market
analysis, and the amount and source of financing needed
to grow the business. They can help develop marketing
strategies to convince investors and banks that investing
in a particular project or business is a wise choice.
Once the feasibility study is complete, stakeholders
should be able to fully understand all aspects of the
project and can then determine whether they want to
move forward with the project.
 IMPORTANCE OF FEASIBILITY
STUDY
 Identifies valid reasons to advance or veto a project idea.
 Improves the focus of the project team.
 Provides useful information for the next steps after the
study.
 Narrows potential business alternatives.
 Evaluate current and needed resources and technology
 Enhances the success or failure rate of the project by
assessing all variables
 Estimates the return on investment
 ELEMENTS OF A FEASIBILTY
STUDY

 Project Scope
Creating a project scope is a part of the planning
process and defines all aspects of the proposed plan. It
should address all parts of the business that could be
impacted when the plan goes into motion. In addition, it’s
important to address the potential outcome of the project in
the product scope. This includes all work that needs to be
completed to deliver the project goals, tasks, costs,
deliverables, and deadlines.
 ELEMENTS OF A FEASIBILTY
STUDY
 Current Analysis
 The purpose of the current analysis is to define and
understand the current methods being used in the
organization.
used to determine whether it’s possible to use certain
components of the current product when creating the
prospective product or potentially save money when
producing the new product or system.
 ELEMENTS OF A FEASIBILTY
STUDY
 Requirements
Two components to identify are the technical and
capital requirements of venture. Investors should possess
information about technology obligations as well as how
much money to invest overall so they can identify the
proper approach to obtain the requirements.
 ELEMENTS OF A FEASIBILTY
STUDY
 Approach
After analyzing the requirements, a consultant
typically recommends a course of action to satisfy the
requirements that were established in the previous step.
Sometimes, using existing systems already in place is
more beneficial than choosing a brand new system, which
can be more costly. The consultant then weighs all options
and recommends the most beneficial solution to the
organization before proceeding.
 ELEMENTS OF A FEASIBILTY
STUDY
 Evaluation
After choosing an approach, a consultant usually
evaluates the cost-effectiveness of the selected approach.
A consultant may analyze and estimate the total project
cost, as well as estimate alternative approaches. Finally,
an evaluation and cost summary are prepared, including
items such as a cost and benefit analysis as well as return
on investment (ROI).
 ELEMENTS OF A FEASIBILTY
STUDY
 Review
A consultant collects all the above elements into a
feasibility study and conducts a formal review. The review
shows the accuracy of the overall study and helps make a
project decision. At this point in the study, the project gets
approved, revised or rejected. If approved, all parties then
sign a document stating their agreement to the project.
TYPES OF FEASIBILTY STUDY
 Economic Feasibility

Technical Feasibility

 Operational Feasibility

 Schedule Feasibility
 Economic Feasibility
Economic Feasibility allows the company to
determine the cost and benefits analyses, which help
provide decision-makers with a list of potential economic
benefits to the organization. They need to know the total
cost, including accidental expenses, so that during the
project, they may be able to anticipate any potential
unforeseen monetary challenges.
Economic Feasibility – Project
Cost
 Tangible Costs  Intangible Costs
 System Development  Maintenance and support
 Incremental data storage
 Hardware and
expenses
software procurement
 Incremental
 Users and staff communications
training  New software and
 Site preparation hardware leases
 Data or system  Consumables

conversion
Economic Feasibility – Project Benefits
 Tangible Benefits  Intangible Benefits
 Reduce and avoid cost  Maintain competitiveness
 Reduce error  Increase organizational

 More flexible flexibility

 Raise morale
 Faster activities
 Promote learning and
 Improve control and
understanding
planning  Timely information
 New market niche and
increasing sales
opportunities
 How do we estimate Economical Benefits?

Economical benefits are usually estimated with:

 Historical information of similar projects
 Future taxation and inflation estimates
 Scale and scope of the project
 Anticipation of other competing projects
 Technical Feasibility
Technical feasibility includes checking for
accessibility to technical resources and applications
within the organization. If the resources already exist,
you must then determine if the technical team can
customize the technology into new working systems for
the project. Not only do you need the correct technical
resources but the equipment also needs to be evaluated to
ensure it has the proper hardware and software for the
proposed plan.
 Purpose

 To ensure that the project is technically feasible

in the same sense that all the inputs required to
set up the project are available.
 To facilitate the most optimal formulation of
the project in terms of technology, size, location
and so on.
 Choose best alternative.
 Technical Feasibility Factors

 Location and site

 Plan size
 Layout
 Machinery & Equipment
 Environment impact assessment
 Inputs
 Infrastructural facilities
 Manpower
 Operational Feasibility

Operational feasibility determines if the human

are available to operate the system once it has been
installed.
Users that do not want a new system may
prevent it from becoming operationally feasible.
Is a measure how well a proposed system solves
the problems and takes advantages of the opportunities
identified during scope definition and how it satisfies
the requirements identified in the requirements analysis
phase of the system development.
 Essential Questions To Help In Testing The
Operational Feasibility Of a System

 Does management support the project?

 Are the users happy with current business practices?
 Will reduce the time (operation) considerably?
 Have the users been involved in the planning and
development of the project?
 Will the proposed system really benefit the organization?
 Does the overall response increase?
 Will accessibility of information be lost?
 Will the system effect the customers in considerable way?
 Schedule Feasibility
The final, but very important feasibility study is that of
the schedule check. It estimates how much time a team needs to
complete the project. All invested groups should recognize and
agree that the project is to finished within an agreed-upon
timeframe for proposed plan to be successful.
Before you start the project you have to ask the following:
 When is the project due?
 Are there legal obligations related to the schedule?
 Within what time is the project or product viable?
 Are the deadline attainable?
This is an assessment of the timeframe for the delivery of
the product and whether or not the product will still be needed
after that time.
 Viability Study
Refers to the ability of a thing to survive or
continue. In terms of business, viability is the state of
being able to operate and make a profit. A business may be
viable in the short term but not in the long term or vice
versa. Viability is often affected by market conditions,
such as the availability of customers or competitions.
Viability can also be affected by the costs of production,
such as the cost of raw materials or labor. Viability is an
important consideration for any business owner or
entrepreneur.
 Difference between Feasibility and
Viability
Feasibility and viability are two important concepts
in business. Feasibility is about whether or not an idea can
be turned into reality. To be feasible, an idea must be
technically possible and there must be a market for it.
Viability, on the other hand is about whether or not an idea
can be profitable. To be viable, an idea must generate
enough revenue to cover its costs. Feasibility and viability
are both important factors to consider when starting a
business. However, viability is more important than
feasibility because it is not worth pursuing an idea if it
cannot generate profits.
 Conclusion

feasibility assesses whether or not a project can be

accomplished while viability looks at whether a project is
worth doing. A business will want to ensure that it can
accomplish a project before moving forward, but also that
the potential return on investment (ROI) justifies the costs.
THANK YOU!