Feasibility study

Definition

A feasibility study is an assessment that evaluates the practicality and viability of a proposed project or system. It involves analyzing various factors such as technical, economic, legal, operational, and scheduling considerations to determine whether the project can be successfully completed. By conducting a feasibility study, stakeholders can make informed decisions about whether to move forward with a project or explore alternative options.

5 Must Know Facts For Your Next Test

1. Feasibility studies help identify potential obstacles and challenges before committing significant resources to a project.
2. They typically include an analysis of the market demand, financial projections, and technical requirements to assess the likelihood of success.
3. A well-conducted feasibility study can save time and money by preventing investments in unviable projects.
4. Feasibility studies can lead to modifications in project plans based on findings, improving the chances of successful implementation.
5. Different types of feasibility studies include technical feasibility, economic feasibility, legal feasibility, operational feasibility, and scheduling feasibility.

Review Questions

• How does a feasibility study contribute to the decision-making process in engineering design?
  • A feasibility study plays a crucial role in the decision-making process by providing stakeholders with a detailed analysis of various factors impacting the proposed project. It assesses technical requirements, financial viability, and potential risks associated with the project. By presenting this information, a feasibility study helps determine whether the project should proceed, be modified, or abandoned, ultimately guiding engineers and decision-makers toward more informed choices.
• Discuss the key components that should be included in a comprehensive feasibility study for an engineering project.
  • A comprehensive feasibility study should include several key components: an analysis of market demand to understand potential users; financial projections detailing costs and revenue; technical requirements outlining necessary technologies or methods; legal considerations addressing regulatory compliance; operational aspects examining how the project will function in practice; and scheduling feasibility to evaluate timeline constraints. Including these elements ensures a thorough evaluation of the project's viability from multiple perspectives.
• Evaluate the impact of conducting a thorough feasibility study on large infrastructure projects and its potential consequences if overlooked.
  • Conducting a thorough feasibility study on large infrastructure projects is vital as it identifies risks, clarifies costs, and assesses community impact. If overlooked, it can lead to disastrous consequences such as cost overruns, delays, or even project failure. For example, without proper analysis, a project might encounter unexpected regulatory hurdles or public opposition that could halt progress. Ultimately, neglecting this critical step can result in wasted resources and missed opportunities for successful project execution.

Related terms

Cost-Benefit Analysis: A systematic approach for comparing the costs and benefits of a project to determine its overall value and feasibility.

Risk Assessment:

The process of identifying, analyzing, and evaluating potential risks that could affect the success of a project.

Project Scope: The boundaries and deliverables of a project, which help define what is included and excluded in the project work.