Feasibility study of a project: how and why to carry it out

The feasibility study of a project is an inherent element of all of them. It doesn't matter.
whether it is a software initiative, an educational project, or one of construction.
Analyzing the feasibility of a project is more important than planning, and in order to
concluding it is essential to carry out a thorough investigation that leads to
to the knowledge of whether the project will truly provide the expected benefits.
It is not just a simple bureaucratic formality, but a necessary tool for the
strategic decision making.

To carry out the feasibility study of a project, it is necessary to gather information.

sufficient for:
Identify the limitations, restrictions, and assumptions.
Detect the opportunities.
Analyze the current mode of operation of the organization.
Define the requirements that shape the project.
Evaluate the different alternatives.
Reach an agreement on the course of action

The structure of a project's feasibility study

For the feasibility study of a project to be effective, it must have at least
the following six parts:

1. Project scope: contributes to defining the boundaries and avoiding deviations that distance.
of the expected results.
It refers to the purpose and is used to define the problem of the company that
needs to be resolved or the business opportunity that is to be seized.
You must clearly, concisely, and precisely define the scope of application to avoid
confuse the project participants.
You have to report on the structure and parts of the company, including the
designation of the participants in the project, the identification of the promoter and the
areas of the end users affected by it.

2. Situation analysis: it helps to identify the strengths and weaknesses of

current approach.
Helps to better understand the system and understand the development mechanisms of
each deliverable.
Facilitates the introduction of changes in the areas where they are required.
It allows establishing guidelines that can be applied to future projects, assuming
a considerable saving in time and money.
It should be used as a roadmap and not as a call to action, which is why its
Conclusions must be framed within the planning and not taken as
priorities to resolve immediately.

3. Definition of requirements: this stage depends on the object of the project's focus and
It is nourished by the joint participation of project members at different levels.

4. Determination of the approach: which represents the recommended solution or course of

optimal action that will conclude in the satisfaction of needs.
 It is essential to evaluate the different solution alternatives for each
problem.
The suitability of using existing structures and alternatives is considered.
Priorities are established based on their pragmatism and feasibility.

5. Project viability assessment: examines the profitability of the approach

selected.
It starts with an analysis of the estimated total cost of the project.
The cost of other alternatives is also calculated, apart from the solution.
recommended, in order to provide an economic comparison.
It is advisable to complete it with a project plan that shows the route of the
project and the start and end dates of the activities together.
It culminates with the calculation of the total cost, an essential aspect for determining the
viability of a project.
This calculation must include a summary of the costs and an evaluation on
based on a cost-benefit analysis and the profitability of the investment.

6. Review of the feasibility study of a project: all the previous elements are
They assemble in a feasibility study that must undergo a formal review in the
that all parties involved participate. This exam has two purposes:

Justify the rigor and precision of the feasibility study.

Make a decision about the project, approving it, rejecting it, or requesting
a review of it or of some of its aspects.

It is important to remember that the feasibility study of a project is more of a way of thinking.
than a bureaucratic process. To increase its usability, it is important that it contains
sufficient details to allow proceeding with the next successive phase in the
project, facilitating the application of a comparative analysis in the preparation of the
final project audit that evaluates what is achieved in comparison with what
what was proposed in the feasibility study.

Reasons to conduct a feasibility study for a project

In addition to the common sense approach that the feasibility study of a project provides
In addition to the planning of it, there are many other reasons that drive companies.
to commit to its preparation. The conduct of a study of this type is a
good business practice and its application can be observed in all businesses of
success. Organizations with lower project failure rates have in
common to have dedicated the time and necessary resources to thoroughly examine all
The issues and assess their likelihood of success before starting the next project.
In addition to minimizing risk, the feasibility study helps them to:
Focus on the project itself and gain a more complete perspective of the
different alternatives.
Discover new business alternatives or ways to optimize results.
Identify opportunities to innovate through the research process.
Detect the signs that warn it is better not to continue and the reasons that
they justify this caution.
Increase the probability of success by discovering the various factors that, from the
Firstly, it could affect the project and harm its results.
 Having quality information to make decisions
based on objective and reliable data.
Have complete documentation, resulting from thorough research that the
The company has carried out in different areas.
Ensure the financing of credit institutions and other monetary sources.
It also helps attract capital investment, one of the biggest benefits.
applauded the feasibility study of a project.

ACQUIRE THE PROJECT EQUIPMENT.

Acquiring the Project Team is the process of confirming the human resources.
available and form the necessary team to complete the project assignments.

The project management team may or may not have direct control over the selection of
the team members, due to collective labor contracts, to the use of personnel
subcontracted, to a matrix-type project environment, to relationships of
internal or external communication, for a variety of reasons. It is important that the
the following factors should be taken into account during the process of Acquiring the Equipment of
Project:

The project director or the project management team must negotiate effectively.
and influence the people who are in a position to provide the resources
humans required for the project.
The failure to acquire the necessary human resources for the project may
impacting the schedules, budgets, customer satisfaction, quality and the
risks. This could decrease the likelihood of success and ultimately lead to the
cancellation of the project.
If human resources are not available due to restrictions, factors
economic or allocations prior to other projects, it may be necessary for the director
of the project or the project team assign alternative resources, likely with
lower competencies, as long as legal and regulatory criteria are not violated,
mandatory or of another specific type.

These factors must be considered and planned during the planning stage of the
project. It will be required that the project director or the project management team
reflects the impact of the unavailability of necessary human resources in the
schedule, budget, risks, quality, and training plans of the project, thus
as in the other plans for its guidance as necessary.

1. Acquire the Project Equipment: Inputs

a) Project Management Plan
b) Environmental Factors of the Company
c) Assets of the Organization's Processes

2. Acquire the Project Team: Tools and Techniques

a) Prior Assignment
b) Negotiation
c) Acquisition
d) Virtual Equipment

3. Acquire the Project Equipment: Outputs

a) Project Personnel Assignments
 b) Resource Calendars
c) Updates to the Project Management Plan

Preliminary preparation of essential activities before the start of the project.

Planning.
A good prior preparation of the project represents a high probability of success and
there are three fundamental issues prior to the implementation of the project: pre-
design, search for support and resources, and planning.

The first issue is the pre-design of the project:

The objectives of the project, taken from those subjects or areas of knowledge
involved in the project
The challenge, the question or the problem to be solved
The final product that is expected to be obtained and
The criteria and possible evaluation mechanisms.

As we already mentioned in the first module, starting for this first phase of the criteria
evaluation of the subjects or areas involved opens the way not only to the way of
relate the project to the curriculum but also how to link the different subjects
of the school curriculum.

This analytical and creative work can be carried out succinctly by the person.
who coordinates the project or can be developed, preferably, by the team of
work that is going to develop the project. In any case, in this first phase the result
This activity must be recorded in a minimum document that can be submitted.
to the management team, to the faculty, to the students or to other external agents since this
The document is the axis of the search for support and resources.

Having the necessary support from the management team, the faculty, the students, the
families and the community are important for the development of a project. It is not uncommon
that the projects require the timely review of schedules (task of
management team), the cooperation of students from higher or lower courses (with
help from fellow teachers and staff), obtaining permission for outings
(families) or financial resources for the purchase of materials or to cover expenses
associated with the project (community and external agents). For all this, the pre-design of
the project becomes an action plan that can be presented to find
supports and resources before deciding whether the project is feasible or not.

If we finally have the necessary support, then we can carry out

the detailed planning of the project. This planning implies that it must
establish
the objectives of the learning project,
the sequence of activities that the students will carry out,
the tasks to be carried out by the teaching staff to develop the project,
the partial products and the final product of the project,
the milestones calendar
the list of resources,
the criteria, mechanisms, and instruments of evaluation,
the dissemination proposal.
Of all these points, there are two aspects that require a more detailed comment: the
tasks of the teaching staff and the milestones calendar.

First of all, the sequence of activities should not be confused for the
students and the list of tasks of the teaching staff. If we want students to
Read biographies of women scientists, first it is necessary or for the teachers
localize those biographies or, better yet, create an information search activity in
Internet. In any case, it is interesting to organize the teachers' work with a table.
like the following:
Phase of Person
Task Products Participants
project responsible
What in
What product Who
moment of What is the task to
the project must be carried out by the
It is expected as Who should coordinates the
result of the do the task? implementation of
teaching staff teaching staff?
task? this task?
complete the task?
For example: Phase Design a hunt of the Teaching staff of
search for treasure that allows for the Social Sciences with
Treasure hunt
information in the students locate and the support of Coordinator
available
project read information teaching staff of ICT of the Center
line
Granada in the about the topic of Castilian language and
History project. Foreign languages

Finally, a simple way to track the project once it is

functioning and ensuring its success and the success of the student participating in it is
create a milestone calendar. In fact, a milestone calendar simply means
make it very clear to the students from the beginning what the partial products are
project and when they should be completed (and how they will be evaluated). In this way the
students will be able to obtain partial results that will lead to the preparation of a
final quality product. We are committed to ensuring the success of all students.
through small gradual achievements.

SOURCES OF FINANCING FOR A PROJECT

A) THE FINANCIAL STUDY
This study aims to identify the sources of capital at the time of investing.

Two sources are identified as follows:

Internal Sources
2.- External Sources

1.- Internal Sources

When, for example, the plant is built and yielding economic results.
favorable, in this sense what the company is considering is:

Use the Bond Issuance Instrument: These are papers that the company issues for
determined value for sale and raises capital. Bondholders are not
shareholders.

Issuance of Shares: They are papers through which the company obtains money and is
owner of a certain and of the shares and has the right to the benefit of
financing. The cost consists of the interest cost that must be paid for the use
of money.

Dividends: They are the earnings that must exist between the differences of the income and
expenses, when these dividends exist, decisions must be made about what to do.
with them:

For example: It can be reversed,

Distribute among shareholders,

A portion can be determined or defined for working capital.

The Internal Sources: This is when the plant is already built, and in this sense
what will be used from it are the undistributed profits, because of the earnings that are
They have from the shareholders' group what is done is redistribute for the reorganization.
from the plant.

From the results of the Internal Sources, the aim is to invest in assets within.
from the same plant.

2.- EXTERNAL SOURCES

In this order, the banks are providing loan facilities to the
investors.

The loans are assumed at:

A) Short Term: (10 years),
B) Medium Term (1 to 10 years),
C) Long Term (more than 10 years).

In the aforementioned sense, the structure of financial analysis is constituted by a

Economic Study and Financial Study, which implies a financial analysis of
any project includes the following aspects for its economic evaluation.

A) Market Competitiveness,
B) The Financial Capacity of the Company,
C) The Economic Social Condition and perspective of the global country.

One must be careful in the financial analysis of any project, that is, regarding
the financial decisions that the Company must make to make any decision are
should take into account the company's perspectives.

Investment Decisions:
They are associated with the project's objective, which could be, for example:
– Expand the plant,
– Manufacture another product different from the current one,
– Increase the production capacity of the same product.

Financial Decisions: These financial decisions define the sources that

They will provide the money that will be used for the project investment.
TRANSFORMATION OF PROBLEMS INTO SOLUTION OBJECTIVES AND STEPS
TO WRITE OBJECTIVES
OBJECTIVES TREE
The positive version of the problem tree is the objectives tree, because it changes a
difficulty in a goal.

The objectives tree is a methodological procedure that describes a future situation

that will dominate when the problem is solved, identify and classify the objectives in order of
importance and visualize in a diagram the means and ends relationships.

The structure of the objectives tree is the same as that of the problems tree.
It is necessary to remember the structure of the problem tree; once you have its diagram, you place the
schematic of the objectives tree with its components.

To build a goal tree, first the central problem is changed to that of

central objective. Then the negative conditions (causes and effects) are changed in
positive states (means and ends). The response in the objectives tree will be the
antonyms of the identified causes and effects.

Example:
HOW TO WRITE A OBJECTIVE?
A goal consists of four parts:
A verb in infinitive
What thing?
How?
For what?

Example:
To decrease
What thing? Child labor
How? with operations from the National Civil Police and the Office of the Attorney for Human Rights
Humans
Why? So that the rights of children are not violated.

The objective would be as follows: Decrease child labor with operations from the National Police.
Civil and the Public Prosecutor's Office for Human Rights to ensure that human rights are not violated.
childhood.

Another example:
To elaborate
What thing? Artisan sausages
How? By applying the procedures for making sausages.
Why? To obtain a product free of preservatives and colorants.

The objective would be as follows: To make artisanal sausages applying the procedures
to make sausages to obtain a product free of preservatives and colorants.

Determination of the general objective and specific objectives of the project.

The general and specific objectives of a project are work tools.
to fulfill the main purpose of the project itself. All these goals must be
coherent with the company's strategy and mission.

The project by objectives is directly related to the decomposition of work. With

Hello, we not only increase our daily productivity, but as we go
validating a goal, the satisfaction from a job well done generates a well-being that
it serves as fuel to continue achieving goals.

Thus, working by objectives provides us with:

Organization in tasks
More exhaustive planning
Work breakdown and task assignment
Productivity
Satisfaction for the work achieved
Communication with the entire team

Correctly assigning objectives for a project can be a task

complicated. Well, it will be our most precious guide to achieve what we are looking for.
carry out the project. Without these steps we would be lost.

Fortunately, the management tool Sinnaps allows us to assign objectives in

each of our activities, to validate them as they are achieved.
An excellent reminder of why we perform that task and an instrument of
very valuable communication to keep the team updated.
Therefore, in this post, it is worth explaining the definition of a general objective, what they are
specific objectives, difference between general and specific objective, how to make one
matrix of objectives, and what operational objectives are. All explained with examples.
of strategic objectives, which will help us better define our goals.

WHAT IS A GENERAL OBJECTIVE?

A general objective is the purpose of why we start to develop a project. This
this type of objective never identifies a measurable and evaluable data within the strategy of
project, but rather describes in general terms what we want to achieve at
to finalize our work, or with a certain business.

Therefore, the overall objective of a project must be consistent with the strategy of the
company, as well as its values and mission. Actions will be planned around it
designed to achieve that objective. For this reason, everything we do in the
company or project will make sense if we focus on this objective. We could say that a
The general objective defines the mission and the why of the project.

What is a specific objective?

The specific objectives of a project correspond to the steps we must follow.
to reach the general objective. Let's say they somehow specify the objectives.
generals. A specific objective as part of the solution to get closer to the purpose
project general.

A very simplified example: to build a house we need to make the foundations, the
internal structure, the walls, the roofs, etc. All these steps are objectives
specific. Indeed, it could be the activities of our planning.

It is important to clarify that the specific objectives of a project do not identify actions.
directly measurable with indicators. That's what operational objectives are for,
which specify the specific objectives. They are measurable through
indicators, directly verifiable. Thanks to them, we will be able to make an evaluation
more comprehensive continuation of our work.

HOW TO CREATE A GOAL MATRIX?

A matrix of objectives is a tool for identifying and prioritizing the objectives of
our project or business.

It serves to communicate to the rest of the team the actions and results we expect.
to investigate the importance and effect of each of them within the project. And
nothing better than creating a objectives matrix to have a visual representation of the
same.
Planning the parameters of a project. (Scope, structure,
specifications and estimates of time, costs, and resources.
The objective of project planning is to achieve a distribution of activities.
in time and a use of resources that minimizes the project's cost
complying with the required conditions of: execution period, technology to be used,
available resources, maximum occupancy level of such resources, etc.

Therefore, project planning is a scheduling of activities and management.

of resources to achieve a cost objective while meeting the required conditions
for our customer.

The planning part includes developing the plan, the program, and the
budget. Generally, during the proposal phase (second), they are not justified
time or the expense required to make detailed planning:
1. Clearly define the project's objective. The definition must be accepted by
the client and the person or organization that will carry out the project.
2. Divide the project scope into important 'pieces' or work packages. Although
important projects may seem overwhelming when considered as
a set, a way to dominate the most monumental company is to divide it. The
the division of labor structure is a hierarchical tree of work elements or
games that the team performs or produces during the project. Often the
The structure of division of labor identifies the organization or the individual person.
responsible for each work package.
3. Define the specific activities that need to be carried out in each package
I work with the aim of achieving the project's objective.
4. Present the activities in graphic form as a network diagram. This
the diagram shows the necessary order and interdependencies of the activities for
achieve the project's objective.
 5. Calculate the estimated time required to complete each activity. It is also
it is necessary to determine the types of resources and the amount required of each one
they to finish each activity within the estimated time.
Calculate the estimated cost for each activity. The cost is based on the types and
amounts of resources required for each activity.
7. Calculate a program and a budget for the project to determine if it is feasible.
achieve within the required time, with the allocated funds and with the resources
available. If not, adjustments must be made to the scope of the project, to the
estimated times for activities or resource assignments, until they are
It can establish a baseline plan (a program to achieve the project scope)
on time and within budget), that is feasible and realistic.

Planning determines what needs to be done, who will do it, how much time it will take
you will need and how much it will cost. The result of this effort is a baseline plan. The
spending time developing a well-thought-out plan is critical for the successful achievement of
any project.

Project scope:
A project in which the scope is not defined correctly is a
project doomed to major problems in its planning, execution, control, so
its probability of this is considerably reduced.

Structures:
Functional organizations provide the basic foundation from which...
they carry out activities aimed at the project; the project integrates the
team efforts to achieve the project objectives. The project manager, who
serves as the focal point for project activities, determining the 'when' and the
that of the work; the functional managers, by supporting all projects, determine the
how the work will be done.

Under the project management concept, representatives from each

one of the functional departments of the divisions to the team assigned to the project.
Each team member derives expert functional guidance and administrative control of the
department manager. The team includes the following key staff:
. Project Manager
. Project Engineer
. Project Construction Manager
. Project commissioning engineer
. Project Quality Assurance Engineer
. Cost and project program supervisor
. Project Manager
. Project procurement manager
. Project controller assistant

The main responsibilities of team members are defined in the following

paragraphs:

Project Manager.
The project manager is responsible for the complete execution of the project based on
contract, the needs of the client, the criteria of the regulatory agencies and the
specific commitments of the corporation. Its main goal is to maintain the project
within the budget, within the planned framework and complete it according to the standards
acceptable quality for the customer and the company.

Project engineer.
The project engineer is responsible for the engineering work on the project.
This work includes the preparation of documents regarding the objectives.
technicians describe the project, the development of the engineering plan and the budget, and the
development of project design. Ensure design quality, provide support
technical to other departments and to the client.

Project construction manager.

The construction manager of the project is responsible for all activities of the
company in the workplace. This includes the supervision of the workforce of
direct hiring, administration of construction contracts, engineering of
field, field provisioning, workplace safety, quality control of the
construction, site accounting, and temporary reception and custody of equipment
and materials of the plant separately.

Coordinator of the construction of the project.

Assist the construction manager by evaluating the costs and schedules of the project. Coordinates
the activities of the site staff with the staff of the headquarters office
design engineering, procurement, cost and program engineering, and construction.

Project commissioning engineer.

He is responsible for the planning of pre-operational testing services of the
project.

Project quality assurance engineer.

It is responsible for the implementation of the quality assurance program for the
work and to supervise and audit the engineering quality activities, the
supply, construction, materials, and manufacturing groups in the
project.

Supervisor of costs and scheduling in the project.

He is responsible for preparing project estimates, budgets, and schedules.
to forecast and supervise the costs of the project and its progress. It must implement a
quality program for materials and direct the preparation of economic studies.

Project Manager.
He is responsible for providing support with staff and overseeing all services.
administrative/office tasks required by the team members assigned to the project. To
just as the procedure manuals of the project and other internal ones are produced.

Project procurement manager.

He is responsible for all the procurement functions required by the project.
including the provisioning of field and the main office.

Project controller assistant.

He is responsible for all financial and accounting matters of the project, such as the
general accounting, payroll, accounts payable, invoices, accounts of
employees, time tracking, accounts receivable, and records of obligations and
of costs.

Project specifications:
The concept in the preparation of plans and specifications is that the project plans
define geometry including dimensions, shape and details while the
specifications complement this by defining general aspects, materials and the
necessary execution. One of the problems found is that the specifications are
poorly organized. They tend to be bulky and it is very difficult to find what you want if
they are not well organized. In addition, some mix different types of information in a
same paragraph which contributes to increasing confusion.