The importance of the feasibility study is considered one of the indispensable matters when starting a project, as it is one of the matters that discuss all the details of the market details and other technical and financial and economic details of the project before starting it, until the decision is taken by the project owner to implement or cancel it.
Elements of a feasibility study
A market feasibility study, which is a study of the market from all sides, which concerns the competitors in the market and products in terms of their quality and price, as well as a study of the target customers, in addition to standing on the supply and demand ratio of the goods to be produced to know the expected productive strength.
Technical, and it is one of the important studies carried out by engineers with experience in this field. This study includes all technical aspects, starting from the specifications of the buildings if they are buildings for the project itself or stores of produced goods, and it is also concerned with the specifications of the machines, equipment and devices required.
A financial and economic study, and it needs a financial expert to establish that study. This study depends on the market study by determining a price for sales. It also gives full attention to the technical study in order to calculate the costs if they are capital costs or operating or storage costs.
Definition of feasibility study
It is a group of studies that come together to reach one result, which is the possibility of implementing the project or not, and in the event of its implementation what is the economic return from the expected profitability of the project and that the decision to implement it or cancel it is not taken.
The importance of the feasibility study
It is a reference for the business owner for reference in times of crisis.
It helps the business owner to utilize resources very efficiently.
Defines the method in the production process and project management.
You have a lot of alternatives to choose which are best for you.
Helps avoid wasting money and raw materials when manufacturing.
It works on calculating all project costs from capital costs and operating costs, which gives a complete picture to the factory owner about the expected spending.
It calculates the expected sales and through it the profits are expected, leaving the choice of implementing the project or not after that on the project owner.
Through a feasibility study, the exerted effort is saved and optimized for the benefit of the project.
Product development and project follow-up on feasibility
Product development and project follow-up in terms of feasibility, of course, the feasibility study is not limited to developing a project implementation plan only, but is also used during work on that project, as the most important steps necessary when practicing the project is continuous development, knowledge of strengths, strengthening them, and also knowing and avoiding weaknesses, All of this is done by conducting a development feasibility study and updating the plan based on the results reached, so the feasibility process during the project is very important.