- Posted by Okechukwu Anosike on October 18, 2010
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Purpose
To examine the project area, gather relevant information to enable the project feasibility to be assessed. The information gathered during this stage will also be required to properly define the project in the following process stages.
Where identified in the project investigation authorisation (usually where the anticipated budget exceeds £100,000, “Basic Financial Feasibility” may also be required and should be undertaken with relevant personnel identified bellow. The Cap-Ex form can also be seen as the first step of this part of the project.
Overview
Research:
General research may be sought by any number of methods, to enable a better understanding of the project area. Often this should include liasing with appropriate team members and contacts. As such this stage should also help to determine any special expertise or HR requirements for the project.
Any significant findings, sources, or information should be stored in the relevant project folder.
The preliminary boundaries should be explored during the general research and feasibility analysis.
Feasibility Analysis
Technical Feasibility: This refers to the ability of the process to take advantage of the current state of the technology in pursuing further improvement. The technical capability of the personnel as well as the capability of the available technology should be considered. This should be described as follows:
Need Analysis. This indicates recognition of a need for the project and how the need may be satisfied. Ansk the following questions:
§ Is the need significant enough to justify the proposed project?
§ Will the need still exist by the time the project is completed?
§ What are the alternate means of satisfying the need?
§ What are the economic, social, environmental, and political impacts of the need?
Process Work. Consider how the need may be satisfied. This will usually involve a record of an ideas, and some basic analysis of these which may include:
§ Basic Calculations
§ Basic Simulation
§ Opinion/ Open forum assessment
§ Assessment vs. Research and existing means
Engineering & Design. Technical study of the proposed project. May include:
§ Written quotations
§ Technology capabilities
§ Product design (if needed)
Cost Estimate. Estimating project cost. Both the initial and operating costs should be included in the cost estimation. Estimates of capital investment and of recurring and nonrecurring costs should also be recorded.
Financial Discussion with the relevant members of the finance department, the departmental manager and appropriate Directors to ensure that the cash flow necessary to support the process can be made available.
Project Impacts. What is the value added by the project. Who does it affect. How will it be perceived. When will it take place, & is the timing convenient. etc….
Resource Impact The human resource requirements should be considered. This should be considered as number of people and man hours. This should extend further to the type of resource i.e. project manager, design engineer, H&S engineer, production, project engineer, maintenance staff, technicians etc…
Conclusions and Recommendations. The feasibility study should end with the overall outcome of the analysis. Recommendations on what should be done should be included in this section of the feasibility report.
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Category: General Engineering, Project Engineering
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