By Dr. Ali Sajid
By Dr. Ali Sajid
Education & Training
A person who
yesterday and stops
studying today is
Fear & Wisdom
fear is the
1.Viability of Idea
2. Analyzing Feasibility ( Possibility) of Proj-
Possibility of Completion ?
Will it be Successful
3.Reasonable likelihood - constraints
Will Not prevent a proj from meeting key obj
5.“Plng & Orgzg Procedure”
-To Ensure Proj is Effective
-It will work”.
Reasonable likelihood that
“Time” & Other “Resources”
Prevent a Project from
What is Feasibility?
Capable of being done,
with means at Hand &
Circumstances, as they are.
Purpose of a FS –
To help assess
“Viability of a business idea-
Technically, Operationally & Economically”
Is the disciplined & documented process of
an idea from its “Logical beginning
to its Logical End”.
This is to determine its Potential
to be a viable business
given realities of the Economic
& Social environment
in which it will operate
Provide Client with a solid foundation upon
which a project is built.
– Concept identification,
– Estimates of supportable market,
– Design parameters,
– Revenue projections
– Net warranted investment.
Essentially Road map of proj
Process of Analysis
Identify Set up Define scope
problem or feasibility and
opportunity study objectives
Recommend – Evaluate
proceed alternatives –
of the study
A written statement includes:
• Project Justification
• Project Objectives
• Major Deliverables
• Criteria: Project/ or Phase
• Formally Recognizes Existence of a Proj
• Gives PMgr Authy to Apply Resources to
Proj, Univ Charter
• Product to be Delivered ?
• Refers to Business Need Proj is
Types of Feasibility
Tech Feasibility- First systematic
investigation of Proj Design Viability.
Foundation of all other FS .
- Assessment of a Proj Capabilities.
-Investigation of Technical & Physical Para/mtr
-Technical Capability of HR
-Capability of Available at Technical side
Foreign consultants Role -LDCs
-Too rigid, & Advanced Tech Spec
- Cannot be met by Country.
Question is “Can it be built?”
Technical Feasibility (TF)
Anticipate Broader Problems with Questions:
1. Adequate “Choice of Available Technologies
for Alternative Design” purposes, considering:
a. Physical layout
b. Engineering design
c. Availability of raw materials?
2. Costs of Constructing & Operating P-Facilities - Svc
a) Machinery, b ) Equipment, c) Spare Parts?
3. Manpower Req:
a) From professional to labor
b) locally available?
c) Responses vary – sector to sector
Technical Feasibility (TF) Contd..
Primary task of TF is Blueprinting:
a) Manpower Needs
b) Resources, and Design
c) Provide Design Alternatives
d) A Choice of Available Technologies,
& Cost estimates for each alternative.
Admin/Managerial Study (AM S)
Evaluates Strategy of company in C/ Out Proj
Providing info & Guidelines-
Used to improve overall Proj Admn.
Project mgr in investigating team.
Examines 4 Components:
A. External linkages,
b. Internal organization,
c. Personnel, and
d. Mgt plan
Economic Study (Econ S)
Examines a Proposed P-in terms of:
Net Contribution to Industry /Economy
& To society”.
Address 3 Related Questions:
P-Responsive to “Urgent Present or Anticipated
2. P-Planned Econ o/p Serve Intended Purpose?
3. Svc Proposed to be Performed by P-
4. Benefits - Justify P - Cost?
Economic Study (Ec S)
Reqs: Study of all of Econ Implications of P:
a) Demand & Supply of All P- O/P.
b) P- Ability to Inc employment
c)P- “Multiplier" Effects (-Inc Purchase of
d) Effect on inc PS Revenue (income tax, sales),
e) use of Locally Available resources.
Assess P- Net Contribution to Econ/social welfare of
Comparison of Econ & Social Benefits-genrtd
From P-Vs Costs of Construction & Ops.
B > C Proj- Economically feasible. Profitability analysis
Economic Feasibility (Econ F)
1. Summary of Economic B/C of Proj
2. Extent to which savings Passed on
4. Optimum timing of Proj
5. Sensitivity Analysis
1. Considering influence of variations of critical P/M
2. discount rates,renergy cost, Construction costs, Tfc forecasts.
6. Conclusions as to Econ F or not
Capability of Proj Org -Raise Funds to implement
(different from economic feasibility
Compatibility of Proposed Proj vs cultural setup
of Proj environment
Addresses influences – of P-on Social System in
Considered in Proj Plang.
Analysis if Proj Capable of Implementation
& Oprtd Safely -Minimal Adverse effects on
-Concern must be shown
-Action must be taken to address any &
all environmental concerns raised or anticipated
-Mega Dams issues (Aswan Dam)
- New Murree Proj
Referred - “Politically Correct Proj."
Political considerations often dictate
direction for a proposed proj
More common in LDC
Proj Feasibility …
Market Variability & impact on Proj
Not confused with Econ/ F
Mket needs analysis to view:
a) Potential Impacts of Market Demand
B) Competitive Activities, etc.
c) “Divertible" Mkt Share -Available