The feasibility study, is a tool used to guide and properly guide the decision making Within the evaluation of a certain project, it is of great help during the last phase of the formulation within the development of a project.
This study is formulated based on the information that includes less insecurity and thus lead to the measurement of the chances of success or failure of a project of investment. Depending on the development of the project, the decision can be made whether or not to develop its implementation.
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In this article you will find:
What is the purpose of the feasibility study of a project
Everything feasibility study of a project It comprises a series of objectives such as those expressed below:
- Manage to reduce errors and increase the precision of processes.
- Reduce the time of processes and execution of activities.
- Verify the existence of the potential market and the dissatisfaction of needs.
- Carry out production and marketing plans.
- Determine the availability of human, material, financial and administrative resources that allow to carry out the production objectives.
- Verify the possibilities of achieving a production that generates profit.
- Lower costs by eliminating unnecessary resources.
What is the scope of the feasibility study of a project
This type of study should lead to:
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- Creation of an effective administrative design for each phase of the project.
- Complete identification of the financing and regulation of the participation commitments assumed within the project.
- Total determination of the project through the study of the market, the use of technology and the location of the facilities, among others.
- Valuation of the level of investments, time, calculations of income and cost of operations that are necessary.
- Definition of the terms of contracting and bidding for works in order to acquire the corresponding equipment and carry out the fundamental civil and complementary constructions.
What does a project feasibility study contain?
The content of this type of study is classified as follows:
- Project background: It is where the origin and introduction of the vision of the project are presented.
- Executive area summary: It is the part where the individuals who have the power and sufficient influence to make decisions in relation to the project are found. In this sense, it is important to carry out a complete summary of the project study.
- Description of the project content: It is necessary to make a description of the project and all its organizational content.
- Recommendations and approvals: Here the explanation is made and all the recommendations that must be made within the project are justified depending on the type of study that is carried out.
Types of feasibility of a project
When carrying out this type of study efficiently, it is necessary to take into account what are the types of feasibility, these are:
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Economic feasibility
The purpose of the economic study, is to indicate what are the economic advantages that the project has for the company. It mainly comprises an analysis of the costs related to the different types of business in a project.
Resource feasibility
Understand the amount and variety of both material and human resources that are needed to carry out the project.
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Technical feasibility
Understand the technological order that a company must carry out, since it is based on the acquisition of resources technologies that are currently available to be applied in the needs of the draft.
Operational feasibility
It is related to the level that fits with the operational system and strategic objectives, based on the schedule, delivery date, business processes and company culture.
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Legal feasibility
It is where it is confirmed if there is any problem in the project related to the legal requirements, that is, if it is accepted by law and complies with all the regularities.
Time feasibility
When a project takes a long time to complete, it is likely to fail, in this sense, it is It is important to estimate the time it takes to develop and in turn know what the benefits would be when complete.
Market feasibility
Describe the product and service market that currently exists that the company considers, therefore, it focuses on the application of strategies that can be used to attract potential customers.
Periods of the feasibility study of a project
Within this study there is a great variety of evaluations and characteristics where the following periods are developed:
- Initial: It is determined in advance of the approval of the development of the project and demonstrates if its execution is feasible and efficient, in addition, the approach of various alternatives is made according to the needs of the draft.
- Impact: It is carried out in conjunction with time and allows the knowledge of the changes that they generate and the verification in case the project is reliable and profitable in the future.
- Keep going: It is carried out during the development of the project and it is verified if any type of change arises in each of its phases.
- Final: When the project is finished it is necessary to check if all the proposed objectives have been fulfilled and it should be determined which were the positive and negative parts during the development of the draft.
Advantages of the feasibility study of a project
Some of the benefits of the feasibility study are:
- Recognize the risks: Allows you to create various strategies that minimize risks so that the project achieves its objective without problems.
- Decrease expenses: This study determines the decrease in expenses and any errors that may be generated.
- Better decision making: Helps from the beginning and during the development of the project, to achieve the objectives.
The execution of a feasibility study of a project is totally favorable for companies before they carry out a project, since it can determine the benefits, if it could cause problems and what would be the possible solutions that lead to success of the same.
