What Is a Feasibility Study in Project Management? How to Do It?
Feasibility in general terms means the authenticity of something or making sure that something would work as the description around that product or service explains. This is a general definition of feasibility that something can be used to conduct a particular task and the chances of that thing coming to your use to pull off that certain work is convincing. But merging it into the digital or business world; whenever you have to present your manager or investment personnel with a new idea or something that requires capital you would have to provide them with a dedicated feasibility study of the idea.
A feasibility study refers to the exploration of the technical characteristics of a project or idea and evaluating whether or not it is likely to succeed in the future and serve the purpose it was created for. It is conducted prior to moving forward with whatever idea is presented on the table and is currently being discussed. It is one of the most important steps taken to process the final outcome of an idea or to understand whether you should move on with it or simply skip it right away?
Following things are being highlighted when conducting a feasibility study in project management;
- Finding the appropriate market for the product or the service under observation
- Key goals for the project based on the market research are also being highlighted
- Mapping out of the potential roadblocks
- Offering alternative solutions for problems in question
- Factoring of the time, budge, legal and manpower based requirements for determining whether the project is worth moving forward with or not
Although project managers on their own are not required to perform the feasibility study it does play a great role if they are involved especially when the project is underway.
Key points of a feasibility study
A feasibility study within the project management can take care of the following things;
- It would help you in determining whether or not the organization have the technical capability to move on with the project
- You would also come to the realization that whether or not the necessary capital is present to execute the project and if a budget could be set up for the project or not
- The legal requirements of the project would also be stated out clearly so the business can take an evaluation such as whether or not they can meet with them
- Risks associated with the project would also come out in the open after performing the feasibility management or if the risks are worthwhile given the scenario where the company wants to proceed with the project at hand
- The operational feasibility of the project can also be determined this way, you will come to realize that whether or not the project is likely to work for the purpose it was put together or not
- Time-based requirements of the project will also be determined quite easily and any additional variables would also be accounted for given the thinking that some more time is required to complete the project
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Conducting a feasibility study
A feasibility study when completed needs to be incorporated into a dedicated feasibility report and there are a variety of things that need to be covered. Some of them will be the same as you came around during the conduction of the study while others would be a continuous elongation of those used by the observer during the conduction of the feasibility study;
Preliminary analysis
Before moving on with the time-based variables which would determine whether or not the project is doable the company conducting the feasibility study will be moving on with a preliminary analysis which is like a pre-screening of the project. It would uncover the obstacles that would render the study useless. If no roadblocks or obstructions are uncovered during the preliminary analysis then the feasibility study would be conducted.
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Defining the scope
It is important to determine the scope of the project so that the scope of the feasibility report could be determined. It will include the number of the composition of the internal stakeholders as well as the external customers and clients. It is imperative to determine the potential impact of the project on all areas of the organization.
Market research
No project must be undertaken in a vacuum that being said the person conducting the feasibility study would indulge in the current market for the same opportunities the project has to offer and also determining whether or not there is a viable place for the project in question in the market.
Financial assessment
Economic costs that are associated with the study would be determined here including the equipment, resources man-hours, the benefits of the project, and the financial risks associated with the proposal and the potential financial impact on the company's reputation if the project turns into a failure.
Roadblocks and alternative solutions
If any problem or roadblock emerges within the study alternative solutions would be provided or sought after for the project to continue in a successful way
Reassessment of results
It is essential to reassess the results as it would provide you with a fresh pair of eyes for looking onto the project in a dynamic way. It would help the team to go one step beyond and uncover more hidden aspects of the project, its potential, or if it should be discarded. In the end, you will have a full report on whether you should continue with the project or if the cons outweigh the pros and you hold consider terminating it.
Go/no-Go decision
The final aspect of the feasibility study is the recommended course of action and in simpler terms, it means that whether the project should be carried on and shoveled into the working stage or the whole idea should be discarded right away.
If you are interested in working as a project management head or project manager then it is recommended that you begin with the PMP certification training right away and secure yourself a bright career ahead.
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