Feasibility Analysis

Question 1

What design stages are included in the Feasibility Analysis?

Answer 1

The first 3:
- Define the problem
- gather information
- conceptual design

Question 2

What is Feasibilitiy?

Answer 2

• Initial feasibiltiy study done for screening
• carried out at inital stages to determine potential for success
• may be carried out at different stages of project definition
• must be OBJECTIVE - credible for client and their investors

Question 3

What is technical feasibility?

Answer 3

• can technical resources achieve the required proejct?
• can the idea be converted into a working system?
• does the proposed system obey fundamental principles of nature (physics, chemistry, thermodynamics, fluid dynamics, etc).

Question 4

What is economic feasibility?

Answer 4

• cost-benifit anlysis
• indepenedent assessment that increases credibility
• help organizations determine finanical viability and finanical risk
• help determine positive economic benefit

Question 5

What do you do in economic feasibility?

Answer 5

Estimate operating cost (OPEX)
Estimate Capital cost (CAPEX)
Estimate revenue
etc.

Question 6

In economic feasilibity, what is NPV?

Answer 6

• the difference between cash inflows and outflows discounted for their present value and it is a key indicator of a project’s profitabiltiy potential
• used to analyze the profitabilty of a projected investment or project

Question 7

What is legal feasibility?

Answer 7

• without required permits, project may not move forwards
• permits required include construction, air water, soil, waste, etc.

Question 8

What is operational feasibility?

Answer 8

Does the project:
- meet organizational needs
- have access to enough human resounces?
Have access to site for information gathering?

project plamn must satisfy customer requirements

Question 9

What is scheduling feasibilitly?

Answer 9

• project will fail if not completed on time

constraints are identified:
- internal project constraints: technical, technology, budget, resource
- internal corporate constraints: financial, marketing
- External constraints: logistics, environmental, law and regulation

Question 10

What are the benefits of a feasibility analysis?

Answer 10

• Help project managers make informed decisions on spending time and money on endevours
• help hgiher management avoid taking tricky business endevours by providing critical info
  etc.