Feasibility study of simple projects, although project managers are not necessarily the ones conducting the feasibility study, they can still act as reference persons during this stage, moreover, project managers can use the feasibility study to understand the project criteria, business objectives, and the risk factors involved for it In this article, we will talk about the feasibility study of simple projects
Feasibility study of simple projects
The feasibility study says whether the project is worth the investment, for example, if the project requires a lot of resources, then this prevents those particular resources from performing other tasks, in general.
Failure to use these resources for the time required to implement the project may cost more than what the organization can gain from that specific project.
So a well-designed feasibility study should present a series of parameters that we the project manager can define as necessary for the full evaluation of the project, and we can start from a historical basis of the activity or project, including the description of the product or service, and the accounting data.
Details of operations and management, market research and policies, financial statements, legal requirements, and tax liabilities, potential risks, and potential alternative solutions are nothing that should be left to chance.
Five areas related to the feasibility of the project
This assessment focuses on the technical resources available to the organization and helps organizations determine whether the technical resources meet the capabilities and whether the technical team is able to convert ideas into operating systems.
Technical feasibility also includes assessment of hardware, software, and other technological requirements.
This evaluation usually includes a cost/benefit analysis of a project, which helps organizations determine the feasibility, costs, and benefits associated with the project before allocating financial resources.
This evaluation examines whether any aspects of the project could conflict with legal requirements.
This evaluation includes conducting a study to analyze and determine whether and to what extent the needs of the organization can be met through the completion of the project.
Operational feasibility studies also analyze how the project plan meets the requirements identified in the analysis phase.
This evaluation is the most important for the success of the project, and the project will fail if it is not completed in time.
Infeasibility planning, the organization estimates how long it will take to complete the project successfully.
Once these areas are examined, the feasibility study enables the identification of any limitations the proposed project may face, including:
Internal constraints: technology, budget, resources, etc.
Internal business constraints: finance, marketing, export, etc.
External restrictions: environment, laws, and regulations, etc.
How to conduct a feasibility study
Anyone conducting a feasibility study must follow several steps. These procedures include:
Preliminary analysis: Before embarking on the actual feasibility study process, many organizations will conduct a preliminary analysis, which is a kind of pre-selection for the project. The preliminary analysis aims to discover obstacles and intractable risks that may render even the feasibility study useless and if the important blocks are not discovered during This analysis, it is possible to proceed with a more detailed feasibility study.
Defining the scope: It is important to define the scope of the project in order to be able to define the scope of the feasibility study. The scope of the project will include the number and composition of both internal and external stakeholders. Moreover, it is important not to forget to study the potential impact of the project on all areas of the organization.
Market research: No project can be implemented without this analysis and those conducting the feasibility study will deepen the current competitive landscape and determine if there is room for a project within this market.
Financial evaluation: The feasibility study will examine the economic costs associated with the project, including equipment or other resources, working hours, proposed benefits for the project, associated financial risks, and the potential financial impact if the project fails. The project.
Alternative Solutions: If any potential problems arise during the study, alternative solutions will be examined to ensure the success of the project.
Reassessment of results: A reassessment of the feasibility study is essential, especially if time has passed since it was first conducted.
Go / No-Go Decision: This is the last step in the feasibility study in a nutshell, you decide here whether the project can be started (go) or not (no-go).