ECON 116

FEASIBILITY
STUDY Lecture 1-3 2ND Semester
SY 2018 – 2019
University of Southeastern Philippines
School of Applied Economics

Christopher D. Balubayan
cdbalubayan@gmail.com Instructor
LEARNING OUTCOMES

1. Describe the context of Feasibility Study

2. Recall the project planning process and

concepts

3. Discuss value and supply chain concepts

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 Relevance of Feasibility Study to Other Related
Subjects

Project Planning and Management

 Project planning is a procedural step in project management, where required documentation is created to ensure
successful project completion.
 Documentation includes all actions required to define, prepare, integrate and coordinate additional plans.
 The project plan clearly defines how the project is executed, monitored, controlled and closed.
 Importance of project plans
 Coordinate rather than to control
 Use of different personalities within the project environment
 Prescheduled frequent revisions
 Empower workers to estimate their own work
 Describe value-creating tasks rather than activities
 Define specific and tangible milestones
 Use check lists, matrices, and other supplements to project plans
 Planning is an ongoing process that is conducted throughout the project life cycle.

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 Relevance of Feasibility Study to Other Related
Subjects

Project evaluation
 A systematic and objective assessment of an ongoing or completed project
 The aim is to determine the relevance and level of achievement
of project objectives, development effectiveness, efficiency, impact and
sustainability.
 The program evaluation process goes through four phases:
 Planning
 Implementation
 Completion
 Dissemination and Reporting
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What is Feasibility Study?

• A well-designed study should offer a

historical background of the business
or project, such as a description of
the product or service, accounting
statements, details of operations
and management, marketing
research and policies, financial data,
legal requirements, and tax
obligations.

• Generally, such studies precede

technical development and project
implementation.

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 Five Areas of Project Feasibility
• A feasibility study evaluates the project’s potential for success; therefore, perceived objectivity is an
important factor in the credibility of the study for potential investors and lending institutions. There are
five types of feasibility study—separate areas that a feasibility study examines, described below.

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 Possible Constraints
• When these areas have all been examined, the feasibility study helps
identify any constraints the proposed project may face, including:

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 Benefits of Conducting a Feasibility Study
• The importance of a feasibility study
is based on organizational desire to
“get it right” before committing
resources, time, or budget.

• A feasibility study might uncover new

ideas that could completely change
a project’s scope.

• It’s best to make these

determinations in advance, rather
than to jump in and learning that the
project just won’t work.

• Conducting a feasibility study is

always beneficial to the project as it
gives you and other stakeholders a
clear picture of the proposed
project.
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 Revisiting Value Chain Concept

Value Chain
• Is a high-level model developed
by Michael Porter used to
describe the process by which
businesses receive raw
materials, add value to the raw
materials through various
processes to create a finished
product, and then sell the
finished product to customers.

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 Revisiting Supply Chain Concept

Supply Chain

• Is the network of all the individuals,

organizations, resources, activities
and technology involved in the
creation and sale of a product,
from the delivery of source
materials from the supplier to the
manufacturer, through to its
eventual delivery to the end user.

The difference between a Value Chain and Supply Chain

• Supply Chain is the process of all parties involved in fulfilling a customer request
• Value Chain is a set of interrelated activities a company uses to create a competitive advantage.

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