What is feasibility study and how it affects in project management?
Feasibility study is a formal project document that shows results of the analysis, research and evaluation of a proposed project and determines if this project is technically feasible, cost-effective and profitable.
A feasibility study determines whether the project is likely to succeed in the first place. It is typically conducted before any steps are taken to move forward with a project, including planning. It is one of the—if not the—most important factors in determining whether the project can move forward.
The growth and recognition of project management have changed significantly over the past few years, and these changes are expected to continue and expand. And with the rise of project management comes the need for a feasibility study.
The importance of feasibility study in project management can only be understood within the context of the types of feasibility studies and their main focus. There are three types of feasibility studies. These three types are the Market, Technical and Financial Study. Technical feasibility places particular focus on the availability of technology that is needed to achieve the objectives of the project. The key considerations of technical feasibility are whether the technology is obtained locally, the costs of the technology if it is to be imported and how relevant is it to the achievement of project objectives. In a broad sense technical feasibility seeks to determine the availability, costs and technological risks associated with technology that is needed to achieve project objectives. For example technologically intense projects such as mining require a detailed technical feasibility study that will determine technological availability, costs and associated risks particularly to the environment.
How feasibility study affects in project management?
- Improves project teams’ focus
- Identifies new opportunities
- Provides valuable information for a “go/no-go” decision
- Narrows the business alternatives
- Identifies a valid reason to undertake the project
- Enhances the success rate by evaluating multiple parameters
- Aids decision-making on the project
- Helps to meet the objectives of the business.
- Helps to meet the expectations of the stakeholders.
- Delivers the work at the right time.
- Resolves problems and issues much earlier.
- Responds to risks on time.
- Manages constraints such as scope, quality, schedule, costs, resources)