Feasibility Study

Feasibility Study Guide for PMI-PBA Certification

Introduction to Feasibility Study

A feasibility study is a structured evaluation that assesses the viability of a proposed project or solution. It helps organizations determine if a project is technically possible, financially justifiable, and aligned with business objectives before significant resources are committed.

Why Feasibility Studies are Important

Feasibility studies play a crucial role in business analysis and project management for several reasons:

1. Risk Reduction - They identify potential obstacles early, allowing for mitigation strategies before major investments occur.

2. Resource Optimization - They help prevent wastage of time, money, and human resources on projects that may not succeed.

3. Decision Support - They provide stakeholders with objective data to make informed go/no-go decisions.

4. Scope Clarification - They help define project boundaries and requirements early in the process.

5. Alternative Evaluation - They enable comparison between different solution approaches.

Components of a Comprehensive Feasibility Study

1. Technical Feasibility - Evaluates if the organization has or can acquire the necessary technology, skills, and infrastructure.

2. Economic Feasibility - Analyzes costs vs. benefits to determine financial viability through metrics like ROI, NPV, and payback period.

3. Operational Feasibility - Assesses how well the proposed solution aligns with business operations and user needs.

4. Schedule Feasibility - Determines if the project can be completed within acceptable timeframes.

5. Legal/Regulatory Feasibility - Considers compliance with laws, regulations, and contractual obligations.

6. Cultural Feasibility - Evaluates organizational readiness and cultural fit of the proposed change.

The Feasibility Study Process

1. Define Project Scope and Objectives - Clearly articulate what the project aims to achieve.

2. Gather Requirements - Collect data on stakeholder needs, constraints, and success criteria.

3. Develop Alternatives - Identify multiple potential solutions.

4. Evaluate Each Alternative - Assess each option against the feasibility criteria.

5. Document Findings - Create a detailed report with recommendations.

6. Present Results - Share findings with key stakeholders for decision-making.

Feasibility Study Deliverables

• Executive Summary
• Problem Statement
• Project Description
• Methodology
• Market Analysis (if applicable)
• Technical Analysis
• Financial Analysis
• Organizational Impact Assessment
• Risk Assessment
• Recommendations
• Supporting Documentation

Exam Tips: Answering Questions on Feasibility Study

1. Understand the Sequence - Remember that feasibility studies occur early in the project lifecycle, typically after the business need is identified but before detailed planning begins.

2. Focus on Purpose - Emphasize that the primary goal is to determine viability before significant resources are committed.

3. Know the Types - Be able to identify and explain the different types of feasibility (technical, economic, operational, etc.).

4. Connect to Business Case - Recognize that feasibility study results feed into the business case development.

5. Identify Key Stakeholders - Know who should be involved in feasibility studies (subject matter experts, business analysts, project sponsors, etc.).

6. Recognize Red Flags - Understand what findings would typically lead to project cancellation or modification.

7. Differentiate from Other Assessments - Know how feasibility studies differ from business cases, cost-benefit analyses, and other evaluations.

8. Apply Context - Consider how the feasibility approach might vary based on project size, complexity, and industry.

When answering exam questions, look for cues about the project phase and required depth of analysis. Questions about early project stages may involve feasibility considerations. Always select answers that prioritize thorough analysis before major resource commitments.