Feasibility Study
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[[File:Lifetime.png|thumb|Recourses distributions during the lifetime of a project.]] | [[File:Lifetime.png|thumb|Recourses distributions during the lifetime of a project.]] | ||
| − | A Feasibility Study (FS) serves as a holistic decision basis for determining the practicality of a project idea. “''There is nothing more unproductive than to build something efficiently that should not have been built at all.''” Tim Bryce, Managing Director of M. Bryce & Associates. Worthwhileness is the essential focus of a FS. The distributions of recourses during the lifetime of a project are naturally negatively skewed, consequently it is most beneficial to address adjustments, optimizations, risks, limitations etc. related to a project at the very start. Hence a FS is an optional first stage of a project, where all major aspects of pursuing a given project are studied on a high level. | + | A Feasibility Study (FS) serves as a holistic decision basis for determining the practicality of a project idea. “''There is nothing more unproductive than to build something efficiently that should not have been built at all.''” Tim Bryce, Managing Director of M. Bryce & Associates. Worthwhileness is the essential focus of a FS, meaning it aims to determine whether a project is possible and/or reasonable. The distributions of recourses during the lifetime of a project are naturally negatively skewed, consequently it is most beneficial to address adjustments, optimizations, risks, limitations etc. related to a project at the very start. Hence a FS is an optional first stage of a project, where all major aspects of pursuing a given project are studied on a high level. |
Conducting a FS enables an objective analysis of a project idea. | Conducting a FS enables an objective analysis of a project idea. | ||
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==Conducting a Feasibility Study== | ==Conducting a Feasibility Study== | ||
| + | There are several steps included in a FS, here four of the most versatile are addressed, i.e. scoping, current market analysis, addressing alternatives solutions and financial study. Bear in mind that a FS is time dependent and thus will only be applicable for a certain project at a specific time. To illustrate the essence of each of the four steps an example of a rail- and highway water crossing will be used. | ||
*Scope | *Scope | ||
| + | To ensure the quality of a FS specifications of objectives need to be established. Scoping at this stage may be of open as well as well defined characteristics depending on the requirements needed to be satisfied. All other steps of the FS will be based on the scope, therefore an inadequate scope will lead to misleading results and a too narrow scope may result in sufficient alternative solutions being overlooked. In some cases it may be recommended to carry out a pre feasibility study in order to roughly estimate if the objectives of the scope are sensible. | ||
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| + | In our rail- and highway water crossing example a scope should state the number of lanes, speed limits, safety requirements etc. | ||
*Current market | *Current market | ||
| + | Analysing the current solutions to the problem may cover investigating copyrights, regulations and faults in current system. This step will uncover how relevant the new project idea is. | ||
*Alternatives | *Alternatives | ||
Revision as of 15:28, 17 September 2017
Contents |
Abstract
A Feasibility Study (FS) serves as a holistic decision basis for determining the practicality of a project idea. “There is nothing more unproductive than to build something efficiently that should not have been built at all.” Tim Bryce, Managing Director of M. Bryce & Associates. Worthwhileness is the essential focus of a FS, meaning it aims to determine whether a project is possible and/or reasonable. The distributions of recourses during the lifetime of a project are naturally negatively skewed, consequently it is most beneficial to address adjustments, optimizations, risks, limitations etc. related to a project at the very start. Hence a FS is an optional first stage of a project, where all major aspects of pursuing a given project are studied on a high level.
Conducting a FS enables an objective analysis of a project idea.
Conducting a Feasibility Study
There are several steps included in a FS, here four of the most versatile are addressed, i.e. scoping, current market analysis, addressing alternatives solutions and financial study. Bear in mind that a FS is time dependent and thus will only be applicable for a certain project at a specific time. To illustrate the essence of each of the four steps an example of a rail- and highway water crossing will be used.
- Scope
To ensure the quality of a FS specifications of objectives need to be established. Scoping at this stage may be of open as well as well defined characteristics depending on the requirements needed to be satisfied. All other steps of the FS will be based on the scope, therefore an inadequate scope will lead to misleading results and a too narrow scope may result in sufficient alternative solutions being overlooked. In some cases it may be recommended to carry out a pre feasibility study in order to roughly estimate if the objectives of the scope are sensible.
In our rail- and highway water crossing example a scope should state the number of lanes, speed limits, safety requirements etc.
- Current market
Analysing the current solutions to the problem may cover investigating copyrights, regulations and faults in current system. This step will uncover how relevant the new project idea is.
- Alternatives
- Economic Feasibility
