PROJECT PLANNING

AND EVALUATION
PRESENTER: CHYRENE D. MILLAPRE
HOW TO DEVELOP
PROJECT FEASIBILITY
STUDY
A PROJECT FEASIBILITY STUDY or PFS is a thorough
and systematic analysis of all factors affecting the
chances of success of a proposed undertaking.

The PFS is a synthesis of a separate studies usually

dealing with the marketing, technical, financial, socio-
economic, and management aspects of a project.
The data, facts, and other
findings presented in a PFS
generally become the basis for
deciding whether the project is
to be pursued, revised or
otherwise abandoned.
Every project goes through
what is known as a “project
development cycle”.

The project is going through

the “Go” or “No Go” phase.
PROJECT SUMMARY
It represents the highlights, descriptive definition, long-
range objectives, feasibility criteria, history and basic
conclusions of the project under study. It gives the
analyst and the financier a “capsule view” of the whole
project.
 In outline form, the project summary contains
the following:

A. NAME OF THE
ENTERPRISE
- Briefly explain the reason
for the choice of the name.
B. LOCATION
- Pin point the
location of the head
office and the plant
site and given the
main reasons for
choosing the project
sites.
The factors which affect the choice of location are:

a. The sources of raw materials, labor, and utilities

b. Proximity of the market
c. Nature of available transportation
d. The cost of land and buildings
C. DESCRIPTIVE DEFINITION OF THE PROJECT
1. Related national program
- Is the project in line with any government-initiated or
priority program?
2. Affinity to regional or sectoral studies
- Is the project a result of encouraging findings in
certain regions or sectors of the country?
C. DESCRIPTIVE DEFINITION OF THE PROJECT

3. Project potential and proponent

- Give a conceptual description of the project’s
potential worth and importance and the person or
group of people who will manage it.
D. LONG-RANGE OBJECTIVES
- What does the project expect to achieve in ten years,
in terms of size, capacity, volume, worth, role in its
industry, and impact on the economy?
E. FEASIBILITY CRITERIA
- What were the most important guidelines used to
judge the feasibility of the project? Was it profitability?
Did it seriously consider the project’s impact on the
socio-economic environment?
F. HIGHLIGHTS OF THE PROJECT

1. HISTORY
- How did the project come about?

2. PROJECT TIMETABLE AND STATUS

- How long will it take for the project to be
operational? What stage is the project presently in?
 F. HIGHLIGHTS OF THE PROJECT
3. NATURE OF THE INDUSTRY
- Briefly describe the industry, its product lines, the
demand-supply situation, history, growth patterns,
problems and potentials, and role in the economy.
4. MODE OF FINANCING
- Briefly discuss the sources of funds, the financing
terms, and the reasons for choosing such sources
and terms.
 F. HIGHLIGHTS OF THE PROJECT
5. INVESTMENTS COSTS
- How much funding is needed to make the project
fully operational? How are these funds to be
allocated?
G. MAJOR ASSUMPTIONS USED AND SUMMARY OF
FINDINGS AND CONCLUSION:

1. MARKET FEASIBILITY
- Discuss the nature of the unsatisfied demand which
the project seeks to meet, its growth and the
manner in which it is to be met.
G. MAJOR ASSUMPTIONS USED AND SUMMARY OF
FINDINGS AND CONCLUSION:

2. TECHNICAL FEASIBILITY
- Discuss the nature of the product line, the
technology necessary for production, its availability,
the proper mix of production resources, and the
optimum production volume.
G. MAJOR ASSUMPTIONS USED AND SUMMARY OF
FINDINGS AND CONCLUSION:

3. FINANCIAL FEASIBILITY
- Present the overall financial picture in terms of
operating cash requirements, profitability and cash
flow.
G. MAJOR ASSUMPTIONS USED AND SUMMARY OF
FINDINGS AND CONCLUSION:
4. SOCIO-ECONOMIC FEASIBILITY
- What are the effects of the project on society and
the regional and national economy as a whole? Is it
generally beneficial to the people? Is it in line with
any national or regional economic development
program?
G. MAJOR ASSUMPTIONS USED AND SUMMARY OF
FINDINGS AND CONCLUSION:
5. MANAGEMENT FEASIBILITY
- What is the management structure? Is it appropriate
for the managerial needs of the project? What is the
salary scale? Is it compatible with industry
standards?
References:

https://pdfcoffee.com/feasibility-study-14-pdf-free.html
https://kupdf.net/download/how-to-develop-project-feasibility-studies_59f1c948e2b6f58067a8a6fd_pdf
http://www.mahandruassociates.com/feasibility-study-and-business-plan-development/
https://pdfcoffee.com/qdownload/coffee-shop-8-pdf-free.html