What is a Feasibility Study. WHAT IS A FEASIBILITY STUDY ? The most important thing to understand about this plan is that it is not static but totally dynamic and one that is continuously changed and updated until it is either abandoned or complete. ![]() Study material for Foundation level, Premium & Free for ISTQB and ASTQB Exam, Certification questions, answers, software testing tutorials and more. Get the latest science news and technology news, read tech reviews and more at ABC News. I can usually make sense of my kitchen radio, even if someone else is talking or the phone is ringing. This isolation of a single noise among others is known as the. This is only one of the latest in a long, dismal history of IT projects gone awryAs the plan is based on continuous change and development it is always carried out in Stages. The GOLDEN Rule is that each and every stage must be 1. Stage. Whenever this GOLDEN rule is broken the project will be out of control and probably be a disaster. The Stages are given different names - depending on the Industry - but any difference are semantic as the same basic process is repeated - no matter whether it is Construction, Finance, IT or Oil and Gas. HOW MANY STAGES ARE THERE IN THE PLAN? They are all called different names - depending on the Industry - but there are always 5 Stages: -Stage. Construction Investment Oil and Gas 1. ![]() Charter. Appraisal. Feasibility. 2Pre- feasibility. Appraisal. Concept. Feasibility. Investment Planning. Front End Eng. There should be 3 primary elements in Stage 1 and these are: - 1. The Identification of the Problem or Oppportunity. Just remember that if the Concept is difficult to explain or describe YOU do not understand what the real problem or opoortunity is! The Identification of the Project Objectives and the Scope that will Solve the Problem or provide Profit from the Opportunity 1. Why it makes Sense for the Project Promoter to pursue the Objective (Strategic Fit in Corporate Speak!)WHAT SHOULD BE INCLUDED IN Stage 2 ? This is the most important Stage of all because if the different Options for achieving the Project Objectives laid down in Stage 1 are not examined in detail then it is much more likely that the Project will be a disaster. There are two primary elements in this Stage: - 2. The Indentification of the Different Ways or Options that will achieve the Objective The Main reason why so many Projects are only partly successful is that all the best ways of achieving the Objective are not thoroughly Explored and Tested 2. The identification of the Pros and Cons and the Net Present Value of each Option. Selection of the Best Option WHAT SHOULD BE INCLUDED IN Stage 3 ? Detailed Appraisal and Financial Analysis of the Best Option This Stage just concentrates on the refinement of the Best Option. The mistake that most Feasibility Study Sponsors make is that they jump straight into Stage 3 from Stage 1 and never undertake Stage 2 - and that is why the majority of all project fail. Projects also fail because the Managers get obsessed with one idea and even though they undertake Stage 2 they never do it properly because they think they know the answer before they start - and they never ever do. CEEVEX HELPS to SET UP AND MANAGE Project Stages 1,2 and 3 SO THAT PROJECTS DO NOT GET OUT OF CONTROL? Cee. Vex also provides the best software tools around to help shortcut the vast amount of work involved in this process: -OK - You have just read a slightly tongue- in- cheek description of the Feasibility Study Process but Please Remember: - Every Project or New Business must be based on a Plan that will work! There is all kinds of horse.. Feasibility Study should do - so let me spell this out in a way that cannot be misunderstood. THE PURPOSE OF A FEASIBILITY STUDY IS TO REDUCE THE RISK OF PROJECT FAILURE Every single organisation that frequently carries out major successful projects has a refined project development system that identifies precisely how Project Studies and Business Planning should be carried out. These systems are often based on at least 5. Every Major Oil Company has their own system that requires all the viable Options to be explored in detail - they would not survive without them! But even they get ot wrong from time to time! BP's Giant Underwater Projects breaks records and Budget. Every one of these project development systems has rigorous procedures that ensure that all the Options for the Implementation of the Project are examined, costed out and properly considered. Put it like this - If your Study does not include consideration of at least three viable methods of achieving the same objective your go - nogo decision will be nothing more then a guess. So Feasibility Studies must be Plans that include in- depth Comparative Reviews of the Options - Just like the Reviews that You look for on the Internet when you are wondering what Car or Camera to buy! Our motto at Cee. Vex is . Cee. Vex is a UK based Organisation that supplies Project Evaluation Software and through its Project Services provides Experience and Expertise in the Execution of Feasibility Studies to provide these Comparative Reviews anywhere in the World. Why are Successful Projects so Rare? It is often difficult to assess of whether a project has been a success or not but everyone knows that totally successful projects are very rare outside the oil and gas industry - although some organisations like airport and port operators have also established very successful track records. Defence projects have always gone wrong! The most recent fiasco that has come out of the UK Ministry of Defence has resulted in the production of two massive aircraft carriers and no suitable aircraft to fly off them! And every month or so we hear about guns that will not fire in the dust or the cold or overspend on defence projects. Partially successful projects are common and Total Failures are also common - especially when it is central or local government that has squandered the taxpayers money to buy votes from a specific sector of the community But private industry also gets it wrong - what about these startups? Solyndra - Solar panel maker based in Fremont California Launched in early 2. Received $5. 35m in loan guarantees from the Obama administration and filed for bankruptcy in September 2. FBI Aptera Motors - based in Carlsbad California Launched in 2. Closed in December 2. US government. The directors are reputed to have physically destroyed the 2e propotypes themselves - self flagellation? Foodme - based in Pasadena Launched in 2. Closed in June 2. Based on the idea that you could broker deals between diners and restaurants Goodmail Systems - based in Mountain View California. Launched in 2. 00. Closed early 2. 01. Based on an Email certification system and raised around $4. Beluga - Group messaging business Launched in December 2. Bought by Facebook in March 2. Closed by Facebook in November 2. Collecta - realtime search engine Launched in June 2. Closed in January 2. Just Remember that 8. Why do so many projects fail? Because the following questions are never answered in the Study or Internal Politics force the project team to produce the wrong answers: - What are we trying to achieve? Where is the best place to do it? When is the best time to do it? Who is going to do it? Most importantly: -How are we going to do it? How Do you know when a Project is successful? It should be easy to gauge whether a Project has been Successful because: -1) The project will be fulfilling the purposes for which it was intended as described in the Feasibility Study 2) The project will be meeting all the financial targets prescribed by the Feasibiilty Study And so If the Feasibility Study has not been done properly you cannot tell whether the project has been successful or not! If the numbers do not work - forget it! Project Studies are predominantly carried out in order to assess whether a project will yield any economic benefits. This is the most important thing about every project – if the numbers do not stack up – the project should be ditched. No matter how attractive the idea is! Dragons Den on British TV is not just a Reality TV show - that is how it is! Cee. Ve. X and Roi. Vex can give you all the tools and help that you need to identify all the right numbers. Back to the Term . After all - more or less any project is do- able if enough resources are used in its execution. The term “Feasibility Study” is now generically used to describe more or less any type of project study and has now become the term that is used in English to describe any study into project or business development. You may also not aware that the term “Feasibility Study” has only been relatively recently become an inherent part of Anglo- Saxon business terminology. The term was unheard of before the Second World war when studies were referred to as “Projects” or “Experiments”. The term Feasibility Study first came into common usage in the 1. Even now, there is a tendency to carry out pilot trials instead of undertaking feasibility studies and in many instances pilot trials are a much better way of gauging the economic benefits that might be gained from the project under consideration. This is particularly true where the manufacturing industry is concerned because it is often cheaper and more economic to simply make a few widgets in an existing factory and to sell them to test real profitability, before building a whole new factory!! Honda does not do Feasibility Studies. Firms like Honda do not do Feasibility Studies – they design a car, build some test cars, refine the design and then install a production line! The important thing about this type of development is that it includes continuous refinement and testing of the product - in effect they study 1. Options - not just three! What was the most successful project of the 2. Century? In practice, Feasibility Studies are often the only way that a reasonably economic analysis of Project Options can be carried out There are many projects such as bridges, power stations, new roads, new railways, new hotels restaurant projects etc that cannot be modelled and refined using the pilot testing approach that car and aircraft manufacturers adopt. Stage 3 - The development of the preferred alternative into a fully detailed project - Refinement is the best way to describe this process. You will need Profit and Loss and Balance Sheet Forecasts for this stage and the only software that will provide these is Roi.
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