feasibility pec
TRANSCRIPT
8/6/2019 Feasibility PEC
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PROJECT PROJECT FEASIBILITY FEASIBILITY
By Dr. Ali Sajid
By Dr. Ali Sajid
8/6/2019 Feasibility PEC
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Education & Training
" A person whograduated,
yesterday and stopsstudying today is
uneducatedtomorrow."
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Fear & Wisdom
"To conquer
fear is thebeginning of
wisdom."
(Bertrand Russell)
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Feasibility
Reasonable likelihood thatConstraints on
³Time´ & Other ³Resources´
will notPr event a Pr o ject from
meeting itsKey Objectives
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What is Feasibility?
Capable of being done,
with means at Hand &
Circumstances, as they ar e.
Pur pose of a FS ±
To help assess³Viability of a business idea-
Technically, Operationally & Economically´
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Feasibility Assessment?
Is the disciplined & documented pr ocess of thinking thr ough
an idea f r om its ³Logical beginning
to its Logical End´.
This is to deter mine its Potential
to be a viable business
given r ealities of the Economic
& Social envir onment
in which it will operate
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Pr ovide Client with a solid foundation upon
which a pr o ject is built.
FS Pr ovides
± Concept identif ication,
±Estimates of supportable market,
± Design parameters,
± Estimates,
± Revenue pr o jections
± Net warranted investment.
Essentially Road map of pr o j
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Process of Analysis
Identifyproblem oropportunity
Set upfeasibility
study
Define scopeand
objectives
Carry outdifferent
aspectsof the study
Recommend ±
proceed/shelve
Evaluate
alternatives ±develop/buy
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Scope StatementScope Statement
A written statement includes:
� Pr o ject Justif ication
� Pr o ject Objectives
� Major Deliverables
� Criteria: Pr o ject/ or Phase
Successf ully Completed
A written statement includes:
� Pr o ject Justif ication
� Pr o ject Objectives
� Major Deliverables
� Criteria: Pr o ject/ or Phase
Successf ully Completed
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T ypes of Feasibility
Technical FeasibilityManagerial Feasibility
Economic Feasibility
Financial Feasibility
Cultural Feasibility
Social Feasibility
Saf ety Feasibility
Political Feasibility
Envir onmental Feasibility
Market Feasibility
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«Tech Feasibility- First systematic
investigation of Pr o j Design Viability.Foundation of all other FS .
- Assessment of a Proj Capabilities.-Investigation of Technical & Physical Para/mtr
TF Reviews:
-Technical Capability of HR
-Capability of Available at Technical side
Foreign consultants Role -LDCs
-Too rigid, & Advanced Tech Spec
- Cannot be met by Country.
Question is ³Can it be built?´
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Technical Feasibility (TF)Anticipate Br oader Pr oblems with Questions:
1.
Adequate ³Choice of Available Technologiesfor Alter native Design´ purposes, considering:
a. Physical layout
b. Engineering design
c. Availability of raw materials?
2. Costs of Constructing & Operating P-Facilities - Svc
a) Machinery, b ) Equipment, c) Spare Parts?
3. Manpower Req:a) From professional to labor
b) locally available?
c) Responses vary ± sector to sector
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Admin/Managerial Study (AM S)
Evaluates Strategy of company in C/ Out Pr o jActivities.
Providing info & Guidelines-
Used to improve overall Proj Admn.
Project mgr in investigating team.
Examines 4 Components:
A. Exter nal linkages,
b. Inter nal or ganization,
c. Personnel, and
d. Mgt plan
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Economic Study (Econ S)
Examines a Pr oposed P-in ter ms of:
Net Contribution to Industry /Economy& To society´.
Addr ess 3 Related Questions:
P-Responsive to ³Ur gent Pr esent or Anticipated
Econ /Social´ need?2. P-Planned Econ o /p Ser ve Intended Pur pose?
3. Svc Pr oposed to be Per for med by P-
4. Benef its - Justif y P - Cost?
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Economic Study (Ec S) Reqs: Study of all of Econ Implications of P:
a) Demand & S upply of All P- O/P.b) P- Ability to Inc employment
c)P- ³Multiplier" Eff ects (-Inc Purchase of
goods Eff ect
d) Effect on inc PS Revenue (income tax, sales),
e) use of Locally Available resources.
Assess P- Net Contribution to Econ /social welf ar e of
community.Comparison of Econ & Social Benefits-genrtd
From P-Vs Costs of Construction & Ops.
B > C Proj- Economically feasible. Profitability analysis
is conducted.
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Economic Feasibility (Econ F)
1. Summary of Economic B/C of Proj
2. Extent to which savings Passed on
4. Optimum timing of Proj
5. Sensitivity Analysis
1. Considering influence of variations of critical P/M2. discount rates,renergy cost, Construction costs, Tfc forecasts.
6. Conclusions as to Econ F or not
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Financial Feasibility-
Capability of Proj Org -Raise Funds to implement
proposed proj
(different from economic feasibilityCultural Feasibility-
Compatibility of Proposed Proj vs cultural setup
of Proj environment
Social Feasibility- Addresses influences ± of P-on Social System in
Proj Environment
Saf ety Feasibility
Considered in Proj Plang.
Analysis if Proj Capable of Implementation
& Oprtd Safely -Minimal Adverse effects on
masses.
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Envir onmental Feasibility--Concern must be shown
-Action must be taken to address any &
all environmental concerns raised or anticipated
-Mega Dams issues ( Aswan Dam)
- New Murree Proj
Political Feasibility
Referred - ³Politically Corr ect Pr o j."
Political considerations often dictatedirection for a proposed proj
More common in LDC
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Proj Feasibility «
Market Feasibility-Market Variability & impact on Pr o j
.
Not conf used with Econ / F
Mket needs analysis to view:a) Potential Impacts of Market Demand
B) Competitive Activities, etc.
c) ³Divertible" Mkt Shar e -Available