Project Feasibility Study

A Project Feasibility Study is a critical preliminary analysis conducted to evaluate whether a proposed project is viable and worth pursuing. This evaluation happens during the project initiation phase and serves as a decision-making tool for stakeholders. The feasibility study examines multiple dimensions of a potential project: 1. Technical Feasibility: Assesses if the organization has or can acquire the necessary technology, skills, and resources to successfully complete the project. 2. Economic Feasibility: Analyzes the project's financial aspects, including cost-benefit analysis, return on investment (ROI), payback period, and net present value (NPV). This helps determine if the project makes financial sense. 3. Legal Feasibility: Evaluates compliance with laws, regulations, and contractual obligations that might affect the project. 4. Operational Feasibility: Examines how well the proposed project fits with the organization's current operations and if it addresses the identified business need. 5. Schedule Feasibility: Determines if the project timeline is realistic and achievable. 6. Market Feasibility: Analyzes market conditions, competition, and customer needs to assess the project's potential success. A comprehensive feasibility study typically includes: - Project description and objectives - Resource requirements (human, financial, material) - Technical requirements and solutions - Financial projections and analysis - Risk assessment - Constraints and assumptions - Alternative approaches - Recommendations The outcome of a feasibility study directly influences the go/no-go decision for a project. If deemed feasible, the project moves forward to detailed planning. If not, the project may be modified, postponed, or canceled entirely. For CAPM candidates, understanding feasibility studies is important as they form the foundation for project selection and prioritization within an organization's portfolio management process.

A Project Feasibility Study is a critical preliminary analysis conducted to evaluate whether a proposed project is viable and worth pursuing. This evaluation happens during the project initiation pha…

Concepts covered: Realistic Feasibility, Technical Feasibility, Market Analysis, Cultural Feasibility, Operational Feasibility, Economic Feasibility, Financial Feasibility, Schedule Feasibility, Legal Feasibility, Resource Feasibility