ENGINEERING PROJECT

FEASIBILITY STUDY
Dr. Qaiser Iqbal (CED UET Peshawar)
Project Feasibility
1.Viability of Idea
2. Analyzing Feasibility ( Possibility) of Project
Possibility of Completion ?
Will it be Successful
3.Reasonable likelihood - constraints
Will Not prevent a project from meeting key
objectives
4.Synonym: Achievability
5.Plng & Organisation Procedure
-To Ensure Project is Effective
-It will work.


Feasibility
Reasonable likelihood that
Constraints on
Time & Other Resources
will not
Prevent a Project from
meeting its
Key Objectives



What is Feasibility?
Capable of being done,
with means at Hand &
Circumstances, as they are.

Purpose of a Feasibility Study
To help assess
Viability of a business/project/construction/
serives idea-
Technically, Operationally & Economically


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Is the disciplined & documented process of
thinking through an idea from its Logical
beginning to its Logical End.
This is to determine its Potential to be a viable
project given realities of the Economic & Social
environment in which it will operate

Provide Client with a solid foundation upon
which a project is built.

Feasibility Study Provides
Concept identification,
Estimates of supportable market,
Design parameters,
Estimates,
Revenue projections
Net warranted investment.

Essentially Road map of project

Process of Analysis
Identify
problem or
opportunity
Set up
feasibility
study
Define scope
and
objectives
Carry out
different
aspects
of the study
Recommend
proceed
/shelve
Evaluate
alternatives
develop/buy
Scope Statement
A written scope statement includes:
Project Justification
Project Objectives
Major Deliverables
Criteria: Project/ or Phase
Successfully Completed
Project Charter
Formally Recognizes Existence of a
Project
Gives Project Manager Authority to Apply
Resources to Project.
Product/project to be Delivered ?
Refers to Business Need Project is
Addressings


Types of Feasibility



Technical Feasibility
Managerial Feasibility
Economic Feasibility
Financial Feasibility
Cultural Feasibility
Social Feasibility
Safety Feasibility
Political Feasibility
Environmental Feasibility
Market Feasibility




Tech Feasibility- First systematic
investigation of Project Design Viability.
Foundation of all other FS .
- Assessment of a Project Capabilities.
-Investigation of Technical & Physical Parameters
Technical Feasibility Reviews:
-Technical Capability of Human Resource
-Capability of Available at Technical side

Foreign consultants Role -
-Too rigid, & Advanced Tech Specification plant/
equipment not available locally
- 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 - Services
a) Machinery, b ) Equipment, c) Spare Parts?
3. Manpower Requirements:
a) From professional to labor
b) locally available?
c) Responses vary sector to sector (e.g. road to dam)



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.


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Evaluates Strategy of company in Carrying Out
Project Activities.
Providing info & Guidelines-
Used to improve overall Project Administration.


Examines 4 Components:

A. External linkages,
b. Internal organization,
c. Personnel, and
d. Management plan





Economic Study (Econ S)

Examines a Proposed Project in terms
of:
Net Contribution to Industry /Economy
& To society.
Address 3 Related Questions:
1. Project Responsive to Urgent Present or
Anticipated Economic/Social need?
2. Planned Economics of project Serve Intended
Purpose?
3. Services Proposed to be Performed by Project
4. Benefits - Justify Project Cost? Return rates etc.
Economic Study (Ec S)

Requires Study of all of Econ Implications of
Project:
a) Demand & Supply of All Project Operations
b) Projects Ability to Increase employment
c)Projects Multiplier" Effects (-Increase Purchase of
goods Effect )

d) Effect on increase in Publics Sector Revenue (income tax, sales),
e) use of Locally Available resources.
Assess Projects Net Contribution to Econ/social welfare of
community.
Comparison of Econ & Social Benefits-generated
From Project -Vs Costs of Construction & Operations.
Benefits > Cost Project is Economically feasible. Profitability analysis is
conducted.
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Financial Feasibility-
Capability of Proj Org -Raise Funds to implement
proposed project from funding bodies (WB,
ADB, IMF, various regional forums)
(off course different from economic feasibility)
Cultural Feasibility-
Compatibility of Proposed Project vs cultural
setup of Proj environment
Social Feasibility-
Addresses influences of Project on Social
System in Proj Environment
Safety Feasibility
Considered in Project Planning.
Analysis if Project Capable of Implementation
& Operated Safely -Minimal Adverse effects on
masses.




Environmental Feasibility-
-Concern must be shown
-Action must be taken to address any &
all environmental concerns raised or anticipated
-Mega Dams issues (Aswan Dam)
- New Murree Project

Political Feasibility
Referred - Politically Correct Project."
Political considerations often dictate
direction for a proposed project
(Kalabagh dam)



Proj Feasibility




Market Feasibility-
Market Variability & impact on Project
.
Not confused with Econ/ F
Market needs analysis to view:
a) Potential Impacts of Market Demand
b) Competitive Activities, etc.
c) Divertible" Market Share Available
e.g. Comparison of Furnace oil power
generation with Hydal in PAK