What are the features and qualities to be considered while preparing the project feasibility report?
inchoate screening of a project idea bequeaths several insights for an
in depth investigation. In order to scrutinize further the project proposal.
Hence there is a need to conduct a feasibility study and need to estimate
the cost of such detailed study. The study is conducted quite exhaustively
by exploring many factors related to the project.
(a) Scope of the study:
Fundamentally before taking any project the scope of the project and the magnitude should be clearly spelled out based on the requirement of the project. Hence without having a clear vision of the project objective it is impossible to make a successful project. All the resource needed for the project should be presented in the report clearly, scheduled completion date etc.
(b) Procurement of data for the studies:
Though the investment and production costs should be estimated as accurately as possible, the costs and time involved in obtaining the data are not always precise and it therefore sometimes it is necessary for the project team to rely on assumptions.
(c) Verification of alternatives and assumptions:
This is one of the most crucial steps in project feasibility analysis. When various alternatives are being provided with regarding choice of technology, capacity, financing etc. In fact the foundations will be strong when the following alternatives are supplied along with the details of the project profile:
2. Work schedules.
3. Exchange mechanism.
4. Continent factors.
(d) Proposed cost structure:
The spending for the project deliverables are always in terms of costs, irrespective of the nature of the product such as research costs, labour costs, overhead cost etc. Therefore it would be ideal to label all the necessary expenditure incurred during the project implementation, which deserves to be treated as cost. The production cost depends on availability of the information about the required resources, manpower, work programme, type of technology, available resources, and distribution costs, skills of the labour.
(e) Scheduling the operations:
Deadline for the completion of the project is also an important factor in project feasibility study. New techniques such as PERT, GERT, CPM, ZBB etc are used for effective time management, in order to be precise in their completion date.
(f) Project team:
It is advisable to prepare the report under the supervision of experts since they are aware time constraints, funds, and resource requirement for the project. To conduct a feasibility study the ideal team members would comprise.
2. Market analyst.
3. Management expert.
4. Technical head.
5. Project Manager.
(g) Project meant for expansion:
Feasibility studies for a new project might be slightly different from already existing projects whose interest is to expand their scale of operation and the scope of coverage. Depending upon the size of the project, it should be clear from the new proposal whether the existing internal organizational structure and supporting facilities will be sufficient or need some adjustments.
(h) Cost studies:
Calculation of pre-investment costs varies from project to project. Since cost are vital determinants of various types of pre-investment studies it is preferable to indicate the magnitude of the cost.