Feasibility Study

 Is the project technically possible?

What will it take. Do you have it? If not, can you get it? What will it cost?

• Technical: Hardware and software
• Existing or new technology
• Manpower
• Site analysis
• Transportation

This assessment is based on an outline design of system requirements, to determine whether the company has the technical expertise to handle completion of the project. When writing a feasibility report in Nigeria, the following will be taken to consideration:

• A brief description of the business to assess more possible factors which could affect the study
• The part of the business being examined
• The human and economic factor
• The possible solutions to the problem

At this level, the concern is whether the proposal is both technically and legally feasible (assuming moderate cost).

The technical feasibility assessment in Nigeria is focused on gaining an understanding of the present technical resources of the organization and their applicability to the expected needs of the proposed system. It is an evaluation of the hardware and software and how it meets the need of the proposed system.

• Initial investment
• Resources to procure capital: Banks, investors, venture capitalists
• Return on investment

Examine the local and broader markets for the product, service, plan, or business.

• Type of industry
• Prevailing market
• Future market growth
• Competitors and potential customers
• Projection of sales

Market research studies is one of the most important sections of the feasibility study as it examines the marketability of the product or services and convinces readers that there is a potential market for the product or services. If a significant market for the product or services cannot be established, then there is no project. 

Includes significant interim markers for the project’s completion date.

A time feasibility study will take into account the period in which the project is going to take up to its completion. A project will fail if it takes too long to be completed before it is useful. Typically this means estimating how long the system will take to develop, and if it can be completed in a given time period using some methods like payback period. Time feasibility is a measure of how reasonable the project timetable is. Given our technical expertise, are the project deadlines reasonable? Some projects are initiated with specific deadlines. It is necessary to determine whether the deadlines are mandatory or desirable.

• The organizational structure of the business
• Legal structure of the business or the specific project
• Management team’s competency, professional skills, and experience

• Legal Considerations.
• Locational Considerations.
  • Availability of land or buildings.
  • The impact of the project on the environment and the approval of the concerned institutions for license.
  • The costs of transporting inputs and outputs to the project’s location (i.e., the distance from the markets).
  • Availability of various services related to the project such as availability of extension services or veterinary or water or electricity or good roads …etc.
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The operational feasibility assessment focuses on the degree to which the proposed development project fits in with the existing business environment and objectives with regard to development schedule, delivery date, corporate culture and existing business processes.

To ensure success, desired operational outcomes must be imparted during design and development. These include such design-dependent parameters as reliability, maintainability, supportability, usability, production possibility, disposability, sustainability, affordability and others. These parameters are required to be considered at the early stages of design if desired operational behaviours are to be realised. A system design and development requires appropriate and timely application of engineering and management efforts to meet the previously mentioned parameters. A system may serve its intended purpose most effectively when its technical and operating characteristics are engineered into the design. Therefore, operational feasibility is a critical aspect of systems engineering that needs to be an integral part of the early design phases.

Break down into subsets of technology, marketing, organization, and financials.