What are the steps in making a feasibility study?

How to start making feasibility study?

• Answer:

  A feasibility study is a preliminary study undertaken before the real work of a project starts to ascertain the likelihood of the project's success. It is an analysis of possible alternative solutions to a problem and a recommendation on the best alternative. It, for example, can decide whether an order processing be carried out by a new system more efficiently than the previous one. A feasibility study could be used to test a new working system, which could be used because: The current system may no longer suit its purpose, Technological advancement may have rendered the current system redundant, The business is expanding, allowing it to cope with extra work load, Customers are complaining about the speed and quality of work the business provides, Competitors are not winning a big enough market share due to an effective integration of a computerized system. Within a feasibility study, six areas must be reviewed, including those of Economics, Technical, Schedule, Organizational, Cultural, and Legal. Economic Feasibility This involves questions such as whether the firm can afford to build the system, whether its benefits should substantially exceed its costs, and whether the project has higher priority than other projects that might use the same resources. Technical Feasibility This involves questions such as whether the technology needed for the system exists, how difficult it will be to build, and whether the firm has enough experience using that technology. Schedule Feasibility This involves questions such as how much time is available to build the new system, when it can be built (i.e. during holidays), interference with normal business operation, etc. Organizational Feasibility This involves questions such as whether the system has enough support to be implemented successfully, whether it brings an excessive amount of change, and whether the organization is changing too rapidly to absorb it. Cultural Feasibility In this stage, the project's alternatives are evaluated for their impact on the local and general culture. For example, environmental factors need to be considered. Legal Feasibility Not necessarily last, but all projects must face legal scrutiny. When an organization either has legal council on staff or on retainer, such reviews are typically standard. However, any project may face legal issues after completion too.