Feasibility Report Parts And Function 2k6d14

Feasibility report • A feasibility report is the results of a feasibility study. This report details whether or not a project should be undertaken and the reasons for that decision. • Report Content 1. 2. 3. 4. 5. 6. 7.

Introduction/Executive Summary Background outline of project Methodology/method of analysis Overview of alternatives Conclusion Recommendation

Introduction/Executive summary 1. It state objective of the report and of the project 2. It should refer of references 3. Also it should state the constraints within which it has been conducted 4. Executive summary: This should concise summary of the major recommendations of the report within 6 pages so that it quickly understood by senior executive

Background   • Some feasibility reports may require some background discussion in order to make the rest of the report meaningful to readers.   • Describe your proposed plan in sufficient detail state if it worked elsewhere and how it was implemented • Background on the Situation. For many feasibility reports, you'll need to discuss the problem, need, or opportunity that has brought about this report.

Outline of system • Outline of system involves description of project • List type and quality of product(s) or service(s) to be marketed. •

Outline the general business model (ie. how the business will make money).

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Include the technical processes, size, location, and kind of inputs.

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Specify the time horizon from the time the project is initiated until it is up and running at capacity.

Methodology • It involves discussion on method of analysis for feasibility study • Return on Investment (ROI) analysis For comparing overall profitability ROI = Estimated lifetime benefits - Estimated lifetime costs Estimated lifetime costs or ROI = Net Present value / Estimated lifetime costs

SWOT Analysis :STRENGTHS

WEAKNESS

MAINTAINING THESE STREGTHS

OVERCOMING THESE WEAKNESS

What can do for maintain these strengths?

What should I do to overcome these weakness?

OPPORTUNITIES

THREATS

TAKING ADVANTAGE OF THESE OVERCOMING THREATS OPPORTUNITIES What can I do to take the advantage of these opportunities?

What can i do to overcome these threats?

Overview of alternatives • Possible alternatives • “Sticking with the current system” should always be studied as one alternative • Different business processes for solving the problems • Different levels/types of computerization for the solutions • Advantages and disadvantages of the alternatives • The major possible alternatives should be discussed and compared using clearly defined criteria.

1. Estimate Equity and Credit Needs • Identify alternative equity sources and capital availability  Producers, Local Investors, Angel Investors, Venture Capitalists • Identify and assess alternative credit sources.  Banks, Government (direct loans or loan guarantees), Grants,  Local and State Economic Development Incentives. • Assess expected financing needs and alternative sources.  Interest Rates, , Conditions, Etc.

2. Cost and benefits evaluation • It demonstrate how this proposal is feasible • It involves discussion technological feasibility, economic practicality, social desirability, and ecological soundness •

Examples of benefits

1. cost reductions 2. error reductions 3. increased throughput 4. increased flexibility of operation 5. improved operation 6. better (e.g., more accurate) and more timely information.

• Types of costs Development costs purchasing cost, Installation cost, operational cost

Conclusion •  The conclusions section of a feasibility is the restatement of the conclusions you have already reached in the comparison sections. In this section, you restate the individual conclusions, for example, which model had the best price, which had the best battery function, and so on. • It must untangle all the conflicting conclusions and somehow reach the final conclusion, which is the one that states which is the best choice

Recommendation

• The final section of feasibility reports states the recommendation. • The recommendation section should echo the most important conclusions leading to the recommendation and then state the recommendation emphatically. • the basis for that judgment has to be stated somewhere in the requirements section.