CIVIL ENGINEERING PROJECTS – CE 526

FEASIBILITY STUDY
- an assessment of the practicality of a proposed plan or method.
- is an analysis used in measuring the ability and likelihood to complete a project
successfully including all relevant.
- is an assessment of the practicality of a proposed project or system.

What is Feasibility Study of a Project?

An analysis and evaluation of a proposed project to determine if it (1) is technically

feasible, (2) is feasible within the estimated cost, and (3) will be profitable. Feasibility
studies are almost always conducted where large sums are at stake. Also called feasibility
analysis.

How do you write a Feasibility Study?

1. Write Project Description. At this step, you need to collect background information on
your project to write the description
2. Describe Possible Solutions
3. List Evaluation Criteria
4. Propose the Most Feasible Solution
5. Write Conclusion

What is an example of a Feasibility Study?

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A feasibility study is research, testing and experimentation designed to determine if a

strategy, design, product or process is possible and practical.

11 Examples of a Feasibility Study

COST
A solar manufacturing firm performs a study to determine if an innovative new design would
be cost competitive given the current cost of required materials, components, energy,
machines and labor.

TECHNOLOGY
A space agency constructs a prototype to determine if a new type of spacecraft propulsion is
technically feasible.

DISTRIBUTION
A fashion company develops a study to identify the risks and opportunities associated with
launching a retail location in Singapore.

PRODUCT DEVELOPMENT
A fast moving consumer goods company commissions a market research firm to see if
customers would buy a premium green tea from well known tea regions of Japan.

LEGAL
A bank is considering launching an innovative new financial product. They begin with a
feasibility study focused on legal aspects such as compliance and regulatory risks.

OPERATIONS
A data center investigates the feasibility of energy self sufficiency using solar panels and
battery systems with the grid as a backup.

EDUCATION
A school district investigates the feasibility of giving every student a computing device for
use in class. The study looks at issues such as cost, educational value, support processes and
information security.

CITIES
A city studies at the feasibility of closing a section of the city to traffic in order to stimulate
economic activity in the area with pedestrian zones. They collect feedback from people who
commute to the area, neighborhood residents and businesses.

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ARCHITECTURE
An architect develops a prototype to test a passive design that gets natural light deep into the
rooms of a building.

ENTERTAINMENT
A producer with an idea for a television series funds a 5 minute demo to see how audiences
react to it.

AGRICULTURE
A farmer experiments with bagging fruit in order to eliminate the use of pesticides.

Other Examples:

 Strategic Planning
 Macro Environment
 Capability Analysis
 Strategy vs. Plan
 Estimates
 Market Intelligence
 Trending

How much does a Feasibility Study cost?

- It depends on a proposed project.

What is the difference between business plan and a feasibility study?

The feasibility study helps determine whether an idea or business is a viable option.
A feasibility study is filled with calculations, analysis and estimated projections.
A business plan is made up of mostly tactics and strategies to be implemented in
other to grow the business.

What is an Engineering Feasibility Study?

Engineering Services – Feasibility Study

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A feasibility study is an engineering study based on test work and engineering

analysis, which presents enough information to determine whether or not the project should
be advanced to the final engineering and production fabrication stage.

How long does a Feasibility Study last?

A feasibility study will also help predict what will happen with a group's money.
Know what the return on investment will be, what the first five to 10 years' worth of cash
flow will look like, and how long the payback period will be. This includes an analysis of tax
rates and possible tax incentives for the project.

What is a Viability Study?

A viability study is an in depth investigation of the profitability of the business idea to

be converted into a business enterprise.

Why is Feasibility Study important?

A feasibility study examines the practicability of a proposal, business venture or idea.

The principal function of this is to determine if the project will continue or not. Another
important purpose is that it helps planners focus on the project and narrow down the
possibilities.

What is the need of a Feasibility Study?

As the name implies, a feasibility study is used to determine the viability of an idea,
such as ensuring a project is legally and technically feasible as well as economically
justifiable. It tells us whether a project is worth the investment—in some cases, a project may
not be doable.

What does a Feasibility Study consist of?

A Feasibility Study is a formal project document that shows results of the analysis,
research, and evaluation of a proposed project and determines if this project is technically
feasible, cost-effective and profitable.

What is the purpose of a feasibility study?

The purpose of a Project Feasibility Study in a projects lifecycle.

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The project feasibility study is the second document that is created following the
business case. The purpose of this study is to determine the factors that will make the
business opportunity that was presented in the business case a success.

What is a Feasibility Study Report?

A Feasibility Study Report (FSR) is a formally documented output of feasibility

study that summarizes results of the analysis and evaluations conducted to review the
proposed solution and investigate project alternatives for the purpose of identifying if the
project is really feasible, cost-effective and profitable.

Assignment: The Elements of a Good Feasibility Study

There are basically six parts to any effective Feasibility Study:

1. The Project Scope which is used to define the business problem and/or opportunity to be
addressed. The old adage, "The problem well stated is half solved," is very apropos. The
scope should be definitive and to the point; rambling narrative serves no purpose and can
actually confuse project participants. It is also necessary to define the parts of the business
affected either directly or indirectly, including project participants and end-user areas affected
by the project. The project sponsor should be identified, particularly if he/she is footing the
bill.

I have seen too many projects in the corporate world started without a well-defined project
scope. Consequently, projects have wandered in and out of their boundaries causing them to
produce either far too much or far too little than what is truly needed.

2. The Current Analysis is used to define and understand the current method of
implementation, such as a system, a product, etc. From this analysis, it is not uncommon to
discover there is actually nothing wrong with the current system or product other than some
misunderstandings regarding it or perhaps it needs some simple modifications as opposed to a
major overhaul. Also, the strengths and weaknesses of the current approach are identified
(pros and cons). In addition, there may very well be elements of the current system or product
that may be used in its successor thus saving time and money later on. Without such analysis,
this may never be discovered.

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Analysts are cautioned to avoid the temptation to stop and correct any problems encountered
in the current system at this time. Simply document your findings instead, otherwise you will
spend more time unnecessarily in this stage (aka "Analysis Paralysis").

3. Requirements and how requirements are defined depends on the object of the project's
attention. For example, how requirements are specified for a product are substantially
different than requirements for an edifice, a bridge, or an information system. Each exhibits
totally different properties and, as such, are defined differently. How you define requirements
for software is also substantially different than how you define them for systems.

4. The Approach represents the recommended solution or course of action to satisfy the
requirements. Here, various alternatives are considered along with an explanation as to why
the preferred solution was selected. In terms of design related projects, it is here where whole
rough designs (e.g., "renderings") are developed in order to determine viability. It is also at
this point where the use of existing structures and commercial alternatives are considered
(e.g., "build versus buy" decisions). The overriding considerations though are:

 Does the recommended approach satisfy the requirements?

 Is it also a practical and viable solution? (Will it "Play in Poughkeepsie?")

A thorough analysis here is needed in order to perform the next step…

5. Evaluation examines the cost effectiveness of the approach selected. This begins with an
analysis of the estimated total cost of the project. In addition to the recommended solution,
other alternatives are estimated in order to offer an economic comparison. For development
projects, an estimate of labour and out-of-pocket expenses is assembled along with a project
schedule showing the project path and start-and-end dates.

After the total cost of the project has been calculated, a cost and evaluation summary is
prepared which includes such things as a cost/benefit analysis, return on investment, etc.

6. Review that all of the preceding elements are then assembled into a Feasibility Study and a
formal review is conducted with all parties involved. The review serves two purposes: to
substantiate the thoroughness and accuracy of the Feasibility Study, and to make a project
decision; either approve it, reject it, or ask that it be revised before making a final decision. If
approved, it is very important that all parties sign the document which expresses their
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acceptance and commitment to it; it may be a seemingly small gesture, but signatures carry a
lot of weight later on as the project progresses. If the Feasibility Study is rejected, the reasons
for its rejection should be explained and attached to the document.

CONCLUSION

It should be remembered that a Feasibility Study is more of a way of thinking as opposed to a

bureaucratic process. For example, what I have just described is essentially the same process
we all follow when purchasing an car or a home. As the scope of the project grows, it
becomes more important to document the Feasibility Study particularly if large amounts of
money are involved and/or the criticality of delivery. Not only should the Feasibility Study
contain sufficient detail to carry on to the next succeeding phase in the project, but it should
also be used for comparative analysis when preparing the final Project Audit which analyses
what was delivered versus what was proposed in the Feasibility Study.

Feasibility Studies represent a common sense approach to planning. Frankly, it is just plain
good business to conduct them. However, I have read where some people in the IT field, such
as the "Agile" methodology proponents, consider Feasibility Studies to be a colossal waste of
time. If this is true, I've got a good used car I want to sell them.

Feasibility Study Report

- Report the method of finding of feasibility study

- Determine if an existing program is effective and efficient.
- Examine a potential program
- Determine the success of a project based on two criteria:
 Cost of the project
 Future value of the project

Step 1 - Draft

A. Analyze the needs of your audience.

B. Examine the context and purpose of the study.
C. Organize the information into content section

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D. Determine the order of the information

Step 2 – Organization (Refer to final report resource)

A. Front Matter – executive summary, title page, table of contents, abstract, preface
B. Body – introduction, body, conclusion, and recommendation
C. Back Matter – appendices, glossary, index, and bibliography.

Steps in Writing a Feasibility Study Report

1. Write Project Description

At this step, you need to collect background information on your project to write the
description. For example, your company needs to increase online sales and promote
your products/services on the Web. Then in the first part of your report you could
write the next description:

“This project is website development to promote the products/services in Internet and

increase online sales through encouraging customers to visit the website and make
online bargains.”

2. Describe Possible Solutions

In order to take this step to write a feasibility study report template, you’ll need to
perform an alternatives analysis and make a description of possible solutions for your
project. For example, in your FSR template your e-commence project might have the
following solutions description:

“This project can be undertaken by the implementation of the two possible solutions:
1) Online Shop; 2) Corporate Website. Each of the solutions is carefully analyzed,
and necessary information required for making the final decision is available for the
management team.”

3. List Evaluation Criteria

Now it’s time to set and define evaluation criteria for possible solutions. This step of
feasibility study report writing requires you to investigate the solutions and put them
against a set of evaluation criteria. For example, you could add the following criteria
to your report:

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“The possible solutions of this project are evaluated and compared by the following
criteria: 1) Concept Spec.; 2) Content Audit; 3) Technical Design Spec.; 4) Launch
Schedule & Time-frames.”

4. Propose the Most Feasible Solution

Once the criteria are used to evaluate the solutions, your next step for writing a
feasibility study report is to determine the most economically reasonable and
technically feasible solution which lets the company 1) keep to optimal use of project
resources and 2) gain the best possible benefit. For example, your report might
include:

“After the evaluation of the possible solutions, the most feasible solution for this
project is identified and selected, so the project turns to be cost-effective, vital and
practical.”

5. Write Conclusion
The final step of the feasibility study reporting process requires you to make a
conclusion by summarizing the project’s aim and stating the most feasible solution.
For example, the conclusion of your FSR might be:

“This project’s purpose is to develop a sophisticated and original design of the

website that will contribute to online sales increasing, attract the target customer’s
attention, and be cost-effective. The most feasible solution for the project has been
chosen and approved and now is ready for further elaboration.”

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Project Life Cycle

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Funding Cycle

Project
Proposal

Evaluation Prioritisation

Monitoring Assessment

Credit
Approval
Disburesement

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