A feasibility study is a critical analysis conducted during the initiation phase of the project life cycle to determine whether a proposed project is viable and worth pursuing. This comprehensive evaluation helps stakeholders make informed decisions before committing significant resources to a proj…A feasibility study is a critical analysis conducted during the initiation phase of the project life cycle to determine whether a proposed project is viable and worth pursuing. This comprehensive evaluation helps stakeholders make informed decisions before committing significant resources to a project.
The feasibility study examines several key dimensions. Technical feasibility assesses whether the organization possesses or can acquire the necessary technology, equipment, skills, and expertise to complete the project successfully. This includes evaluating existing infrastructure and determining if technical requirements can be met.
Economic or financial feasibility analyzes the cost-benefit relationship of the project. This involves estimating total project costs, projected returns, and determining whether the anticipated benefits justify the investment. Common metrics used include Return on Investment (ROI), Net Present Value (NPV), and payback period calculations.
Operational feasibility examines whether the completed project will function effectively within the organization's current operations. This considers how well the project outcomes will integrate with existing processes, systems, and workflows, as well as user acceptance and organizational readiness.
Schedule feasibility evaluates whether the project can be completed within an acceptable timeframe. This assessment considers resource availability, dependencies, and any time constraints that might affect project delivery.
Legal and regulatory feasibility ensures the project complies with all applicable laws, regulations, and industry standards. This includes reviewing contracts, permits, licenses, and any legal obligations that must be satisfied.
The feasibility study typically results in a formal report that presents findings, recommendations, and a go or no-go decision. Project managers use this document to communicate with sponsors and stakeholders about project viability. A thorough feasibility study reduces risk by identifying potential obstacles early, allowing organizations to either address concerns proactively or redirect resources toward more promising initiatives.
Feasibility Studies in Project Management
What is a Feasibility Study?
A feasibility study is a comprehensive analysis conducted during the initiation phase of a project to determine whether the proposed project is viable and worth pursuing. It evaluates the practicality of a proposed plan or method before significant resources are committed.
Why Feasibility Studies Are Important
Feasibility studies serve several critical purposes:
• Risk Reduction: They help identify potential problems and obstacles before the project begins, allowing stakeholders to make informed decisions.
• Resource Optimization: Organizations can avoid wasting time, money, and effort on projects that are unlikely to succeed.
• Stakeholder Confidence: A thorough feasibility study builds trust among sponsors, executives, and team members by demonstrating due diligence.
• Foundation for Planning: The findings provide essential data for creating realistic project plans, budgets, and timelines.
Types of Feasibility Analysis
The CompTIA Project+ exam emphasizes five key areas of feasibility:
1. Technical Feasibility: Evaluates whether the organization has the technical resources, expertise, and technology to complete the project successfully.
2. Financial/Economic Feasibility: Analyzes costs versus benefits, return on investment (ROI), payback period, and overall financial viability.
3. Operational Feasibility: Assesses whether the project solution will work within the organization's existing operations and culture.
4. Schedule Feasibility: Determines if the project can be completed within the required timeframe.
The feasibility study process typically follows these steps:
1. Define the Project Scope: Clearly outline what the project aims to accomplish.
2. Gather Information: Collect data through research, interviews, and analysis of existing systems.
3. Analyze Each Feasibility Area: Systematically evaluate technical, financial, operational, schedule, and legal aspects.
4. Identify Alternatives: Consider different approaches or solutions that might achieve the same objectives.
5. Document Findings: Compile results into a formal feasibility report with recommendations.
6. Present to Stakeholders: Share findings with decision-makers for go/no-go decisions.
Key Deliverables
A feasibility study typically produces: • Feasibility report or study document • Cost-benefit analysis • Risk assessment • Recommendation for project approval or rejection
Exam Tips: Answering Questions on Feasibility Studies
Tip 1: Remember that feasibility studies occur during the initiation phase, before detailed planning begins. If a question asks about pre-project analysis, think feasibility.
Tip 2: Know the five types of feasibility and be able to distinguish between them. Technical feasibility focuses on capability, while operational feasibility focuses on practicality within the organization.
Tip 3: Questions about ROI, payback period, or cost-benefit analysis relate to financial feasibility.
Tip 4: When a scenario describes time constraints or deadline concerns, the answer likely involves schedule feasibility.
Tip 5: Feasibility studies help determine if a project should proceed - they support the go/no-go decision.
Tip 6: Look for keywords in questions: terms like viable, practical, achievable, or realistic often point to feasibility-related answers.
Tip 7: Remember that a negative feasibility finding is still valuable - it prevents wasted resources on doomed projects.
Tip 8: Feasibility studies are connected to the business case and project charter, as they provide justification for project approval.