The feasibility test is regarded as the first step in project management. Before making any investments or decisions regarding a project, the executive calculates the potential of a particular project by going through a feasibility study. It is an analysis taking account of all the project’s relevant factors like scheduling, economic, technical, and legal considerations for ascertaining the possibility of successful completion of the project. Project managers implement feasibility studies before invest money and time into it.
Feasibility studies are crucial for every organization investing money into diverse projects as it protects them from entering blindly into risky businesses.
Key points of a feasibility study:
A feasibility study is used to determine the value of the proposed project by evaluating certain key factors of the proposed project. These factors are individually assessed to calculate the worth taking up that particular project.
1. Technical capability:
Whether the organization possesses the required technical resources, capabilities, and workforce to undertake the project. It has to be accessed beforehand to not let things get out of control at a certain point in time.
The organization needs to check with the financial resources to undertake the project and the additional cost of things which could only be determined by the critical analysis of the project.
It’s important to check with the legal requirements of the project and make an evaluation of the project requirements with the business establishment.
Before moving on with any of the projects, it’s essential to evaluate the risk associated with undertaking the project. The perceived benefits have to be in favour of the company.
5. Operational feasibility:
The project has to synchronize with the organization’s needs in its proposed scope or else they have to identify the issues and look for all the possible solutions before taking advantage of identified opportunities.
The project has to be completed in a reasonable timeline that is advantageous to the company, otherwise it can lead to detrimental effects on the organization.
Consulting experienced and appropriate stakeholders about the new concept. Try to get their viewpoints and feedback on the proposed project. They critically examine it and evaluate it through a series of key points to make sure that it’s worth the effort.
Conduct a market survey by gathering authentic information about the current market prices, leading competitors, and other relevant data for the evaluation of the project.
An establishment conducts a feasibility study while it’s considering adopting a new product line or even launching a new business. This study is conducted to advance the emergency plan in case of unpredictable situations. If the original project is not feasible, they try to incorporate some changes or work on the new one.
The goals of feasibility studies:
- To understand all aspects of a plan, project, or concept.
- Things might not work out as per the expectations, feasibility studies help us to look for potential loopholes that might affect the successful completion of the project.
- To determine if the project is worthwhile by considering all viable significant factors related to the project.
If you are interested in exploring the diverse field of project management, you can start by enrolling yourself in a project management course and then develop a long term career plan in this domain.