Project Summary
THE FIRST SECTION of a Project Feasibility Study is THE PROJECT SUMMARY. It
presents the highlights, descriptive definition, long-range objectives, feasibility
criteria, history, and basic conclusions of the project under study. It gives the
analyst and the financier a "capsule view" of the whole project.
This portion starts with the name of the firm, the location and size of its head office,
plant site, and factory. It then presents a comprehensive description of the
business, its operations, and its product lines. Major assumptions used and findings
on the market, technical, financial, socio-economic, and management feasibility of
the project are discussed. The status and timetable of the project must also be
stated.
In outline form, the project summary contains the following:
A. NAME OF THE ENTERPRISE
Briefly explain the reason for the choice of name.
B. LOCATION
Pinpoint the location of the head office and the plant site and give the main reasons
for choosing the project sites. The factors which affect the choice of location are the
sources of raw materials, labor, and utilities; proximity to the market; nature of
available transportation; and the cost of land and buildings. The project must
choose a location where maximum efficiency can be attained at the lowest possible
cost.
C. DESCRIPTIVE DEFINITION OF THE PROJECT
1. Related national program Is the project in line with any government-initiated or
priority program?
2. Affinity to regional or sectoral studies Is the project a result of encouraging
findings in certain regions or sectors of the country?
3. Project potential and proponent Give a conceptual description of the project's
potential worth and importance and the person or group of people who will manage
it.
D. LONG-RANGE OBJECTIVES
What does the project expect to achieve in ten years, in terms of size, capacity,
volume, worth, role in its industry, and impact on the economy?
E. FEASIBILITY CRITERIA
What were the most important guidelines used to judge the feasibility of the
project? Was it profitability? Did it seriously consider the project's impact on the
socioeconomic environment?
F. HIGHLIGHTS OF THE PROJECT
1. History
How did the project come about?
2. Project timetable and status
How long will it take for the project to be operational? What stage is the project
presently in?
3. Nature of the industry
Briefly describe the industry, its product lines, the demand-supply situation, history,
growth patterns, problems and potentials, and role in the economy.
4. Mode of financing
Briefly discuss the sources of funds, the financing terms, and the reasons for
choosing such sources and terms.
5. Investment costs
How much funding is needed to make the project fully operational? How are these
funds to be allocated?
G. MAJOR ASSUMPTIONS USED AND SUMMARY OF FINDINGS AND
CONCLUSION:
1. Market feasibility Discuss the nature of the unsatisfied demand which the project
seeks to meet, its growth and the manner in which it is to be met. Here, the supply-
demand situation is examined, the target markets analyzed, and the marketing
program formulated.
2. Technical feasibility Discuss the nature of the product line, the technology
necessary for production, its availability, the proper mix of production resources,
and the optimum production volume.
3. Financial feasibility Present the overall financial picture in terms of operating
cash requirements, profitability, and cash flow.
4. Socio-economic feasibility What are the effects of the project on society and the
regional and national economy as a whole? Is it generally beneficial to the people?
Is it in line with any national or regional economic development program?
5. Management feasibility What is the management structure? Is it appropriate for
the managerial needs of the project? What is the salary scale? Is it compatible with
industry standards?