Project Planning

and Monitoring
Project Conception and
Feasibility
 What is
Project
Conception?
• Beginning of a Project is the initial step in the
process of defining the actual scope of a project.
• Project conception generally starts with an appearance
of a requirement or an opportunity that will benefit
the corporate interests and ends when one
or more preliminary options have been
formulated which will, theoretically, satisfy
the company’s expectations as originally
presented.
Stages of Project Conception
• Initial conceptualization of a project has various degrees of complexity, depending on the
nature of the specific project and the particular analysis and approval procedures used
by an organization.
• The organization’s planning strategy may require formulations of programs involving
several projects. Conception of the overall program should then precede conception of
the individual specific projects.
• The conceptual stage involves the following activities:
1. Definition of a requirement or an opportunity that commands the interests of
the company.
2. Formulation of a set of preliminary alternatives capable of fulfilling the
initial
requirement.
3. Selection of alternative(s) that might satisfy the requirements in terms and
conditions attractive to the organization
1. Definition of the Requirement or Opportunity

• The continuity of efficient operations and the opening of the

new business areas are the main drives for capital investments for
industrial firms. Investment opportunities are detected
through operational analysis of current performance and by
forecasts of the most likely future scenarios.
• Initially, the scope of any new investment is likely to be
vague. Subsequent definition involves consideration of all
available relevant facts, required resource sand constraints
associated with the original idea.
2. Preliminary Formulation of the Alternatives

• Project conception continues with development of alternatives

capable of fulfilling the expressed objectives.

• The preliminary formulation of alternatives is important as it sets

the pace of the subsequent definition and elaboration of the
project scope.

• During this phase, the organization calls upon the experience

and creativity of its technicians, manager and directors to
generate an adequate group of alternatives to fulfill the expressed
need.
3. Initial Selection of Alternatives
• After the alternatives have been identified, comparative analyses are made
in order to select the most beneficial and to reject the least attractive.
• The selection process employs a basic feasibility analysis of each
alternative the establishment of criteria that will allow the identification
of the most attractive options.
• At this point, further consideration of the rejected alternative is terminated
along with the need to prepare elaborate definitions for them.
• The cost, schedule, profitability, and other salient advantages and
disadvantages of each of the selected alternatives are assessed in terms of
order of magnitude.
• Difference among the options is sought still without establishing precise
project parameters.
What is a Feasibility Study of a
Project?
• In a feasibility study, a proposed plan or project is evaluated for its
practicality.
• As part of a feasibility study, a project or venture is evaluated for
its viability in order to determine whether it will be successful.
• As the name implies, a feasibility analysis is used to determine the
viability of an idea, such as ensuring a project is legally and
technically feasible as well as economically justifiable.
• It tells us whether a project is worth the investment—in
some cases, a project may not be doable.
Understanding A Feasibility
Study
• A feasibility study is a preliminary exploration of a proposed
project or undertaking to determine its merits and viability.
• A feasibility study aims to provide an independent assessment that
examines all aspects of a proposed project, including technical,
economic, financial, legal, and environmental considerations.
• This information then helps decision-makers determine whether
or not to
proceed with the project.
• The feasibility study results can also be used to create a realistic project
plan and budget.
• Without a feasibility study, it cannot be easy to know whether or not a
proposed
project is worth pursuing.
 1. Technical Feasibility
This assessment focuses on the technical
resources available to the organization. It
helps organizations determine whether the
and whether
technical the technical
resources team is capable of
meet capacity
converting the ideas into working systems.
Technical feasibility also involves the evaluation of
Types of the hardware, software, and other technical
requirements of the proposed system.

Feasibilit 2. Financial
Feasibility
y Study This assessment typically involves a cost/
analysis
benefits of the project, helping organizations
determine the viability, cost, and benefits
associated with a project before financial resources
are allocated. It also serves as an independent
project assessment decision-makers
credibility—helping and enhances determine
project the
positive financial benefits to the organization that
the proposed project will provide.
 3. Managerial Feasibility
Demonstrated management capability and availability, employee
involvement, and commitment are key elements required to
ascertain managerial feasibility. This addresses the management
and organizational structure of the project, ensuring that the
proponent’s structure is as described in the submittal and is well
Types of suited to the type of operation undertaken.

Feasibilit 4. Economic Feasibility

y Study This involves the feasibility of the proposed project to generate
economic benefits. A benefit-cost analysis is required. A
breakeven analysis when appropriate is also a required aspect of
evaluating the economic feasibility of a project. The tangible and
intangible aspects of a project should be translated into economic
terms to facilitate a consistent basis for evaluation. Even when a
project is non-profit in nature, economic feasibility is critical.
 5. Legal Feasibility
This assessment investigates whether any aspect
of the proposed project conflicts with legal
requirements like zoning laws, data protection
acts or social media laws. Let’s say an
organization wants to construct a new office
building in a specific location. A feasibility study
Types of might reveal the organization’s ideal location isn’t
zoned for that type of business. That
Feasibilit organization has just saved considerable time
and effort by learning that their project was not
y Study feasible right from the beginning.
6. Operational Feasibility
This assessment involves undertaking a study to
analyze and determine whether—and how well—
the organization’s needs can be met by
completing the project. Operational feasibility
studies also examine how a project plan satisfies the
requirements identified in the requirements
analysis phase of system development.
 7. Scheduling
Feasibility
This assessment is the most
important for project success; after all, a
project will fail if not completed on time.
In scheduling feasibility, an organization
Types of estimates how much time the project will
take to complete.
Feasibilit 8. Cultural Feasibility
y Study Cultural feasibility deals with the compatibility of the
proposed project with the cultural environment of the
project. In labor-intensive projects, planned functions
must be integrated with the local cultural practices and
beliefs. For example, religious beliefs may influence
what an individual is willing to do or not do.
 9. Social Feasibility
Social feasibility addresses the influences that a proposed project
may have on the social system in the project environment. The
ambient social structure may be such that certain categories of
workers may be in short supply or nonexistent. The effect of the
project on the social status of the project participants must be
Types of assessed to ensure compatibility. It should be recognized that
workers in certain industries may have certain status symbols
Feasibilit within the society.

y Study 10. Environmental Feasibility

Environmental feasibility is another important aspect that should
be considered in project planning. Environmental feasibility
refers to an analysis of whether the project is capable of being
implemented and operated safely with minimal adverse effects on
the environment. Unfortunately, environmental impact assessment
is often not adequately addressed in complex projects.
 11. Political Feasibility
Political considerations often dictate directions for a proposed project.
This is particularly true for large projects with significant visibility that
may have significant government inputs and political implications. For
example, political necessity may be a source of support for a project
regardless of the project's merits. On the other hand, worthy projects may

Types of face insurmountable opposition simply because of political factors.

Political feasibility analysis requires an evaluation of the compatibility of
project goals with the prevailing goals of the political system.
Feasibilit
y Study 12. Market Feasibility
This area should not be confused with the Economic Feasibility. The
market needs analysis to view the potential impacts of market demand,
competitive activities, etc. and market share available. Possible
competitive activities by competitors, whether local, regional, national or
international, must also be analyzed for early contingency funding and
impacts on operating costs during the start-up, ramp-up, and commercial
start-up phases of the project.
Constraints through Feasibility
Study
When all areas have been examined, the feasibility analysis helps
identify any constraints the proposed project may face, including:
• Internal Project Constraints: Technical, Technology, Budget,
Resource, etc.
• Internal Corporate Constraints: Financial, Marketing, Export, etc.
• External Constraints: Logistics, Environment, Laws, and
Regulations, etc.
Importance of Feasibility Study
The importance of a feasibility study is based on organizational
desire to “get it right” before committing resources, time, or
budget. A feasibility study might uncover new ideas that could
completely change a project’s scope. Below are some key benefits
of conducting a feasibility study:
• Improves project teams’ focus
• Identifies new opportunities
• Provides valuable information for a “go/no-go” decision
• Narrows the business alternatives
• Identifies a valid reason to undertake the project
• Enhances the success rate by evaluating multiple parameters
• Aids decision-making on the project
• Identifies reasons not to proceed
What is Included in a Feasibility
Study Report?
The results of your feasibility studies study are summarized in a
feasibility report, which typically comprises the following sections:
• Executive summary
• Specifications of the item or service
• Considerations for the future of technology
• The marketplace for goods and services
• Approach to marketing
• Organization/staffing
• Schedule
• The financial forecasts
• Recommendations based on research
 Purpose of a Feasibility Study
A feasibility study is an important first step in starting a new business. It is
a detailed examination of whether or not a proposed business venture is
likely to be successful. A feasibility study aims to provide information that
will help business owners make informed decisions about their new
venture. The feasibility study will answer important questions about the
proposed business, including:
• What is the target market for this business?
• Who are the competitors?
• What are the costs associated with starting and running this business?
• What are the potential risks and rewards associated with this venture?
• How much revenue can this business generate?
• What are the estimated profits and losses for this business?
 7 Steps to
Do a
Feasibility
Study
 A preliminary investigation is necessary
to determine whether a full feasibility
1. study is warranted. During this stage,
key information will be gathered to
Conduct assess the project's potential and make a
preliminary decision about its feasibility.
a This should include a review of relevant
documents, interviews with key
Preliminar personnel, and surveys of potential
customers or users.
y Analysis
 To do a feasibility study, one must
create a projected income
2. Prepare statement. The projected income
statement will show how much
a money a business is expected to
make in the coming year. It will
Projected include both an estimated
revenue and an estimated
Income expenses. This document will be
essential in helping one make
Statement informed decisions about his/her
business.
 • Conducting market research is an important step
3. in any feasibility study. By understanding the
needs and wants of potential customers, one can
Conduct determine if there is a market for his/her product
or service. One can also get an idea of what
a Market his/her competition is doing and how to best
position the business to meet the needs of his/her
Survey, target market.
• There are a variety of ways to conduct market
or research. One popular method is to conduct a
survey. One can survey potential customers
Perform directly or use data from secondary sources such
as surveys conducted by other organizations. One
Market can also use focus groups or interviews to get
feedback from potential customers.
Research • Once the data is gathered, one can use it to
create a profile of his/her ideal customer. This will
help to understand the target market and how to
 When starting a business, one of the first
things one need is to plan his/her organization
and operations. This involves creating a
structure for his/her company and figuring out
4. Plan the logistics of how he/she will run it. There are
many factors to consider when planning
Business organization and operations, such as:
Organizatio • Company Structure: What type of
company will it be (sole proprietorship,
n and partnership, corporation, etc.)? How will
Operations the hierarchy look like?
• Location: Where will the business be
located? Will it have a physical storefront
or will operate online only?
• Marketing: How will the business be
promoted ?
 The opening day balance sheet is a snapshot of
the company's financial position at the beginning
of the business venture. The purpose of the
opening day balance sheet is to give an idea of
the amount of money that the company has to
5. Prepare work with and track its expenses and income as

an they occur. This information is vital to making

sound business decisions. The opening day

Opening balance sheet will include the following:

• Cash on hand
• Accounts receivable
Day • Inventory

Balance • Prepaid expenses

• Fixed assets
Sheet • Accounts payable
• Notes payable
• Long-term liabilities
• Share
 • The feasibility study should include reviewing and
analyzing all data relevant to the proposed
project. The data collected should be verified
against source documentation, and any
discrepancies should be noted. The purpose of
the feasibility study is to provide a basis for

6. Review making a decision, and the data should be

• sufficient to support
The analysis that decision.
should consider both the positive
and and negative aspects of the proposed project.
The financial analysis should be thorough, and all
Analyze assumptions should be documented. The risk
assessment should identify any potential risks
All Data and mitigation strategies. The team assigned to
the project should review the feasibility study
and recommend the organization's leadership.
• Organizational leadership should decide whether
to proceed with the project based on the
feasibility study's findings. If the project is
approved, the organization should develop a
project plan that includes a detailed budget and
timeline
 • It is important to know when to cut losses
when starting a business. The go/no-go
decision in a feasibility study comes in. The
go/no-go decision is a key part of a feasibility
7. Make study, and it can help one determine whether
or not his/her business idea is worth pursuing.
a Go/No- • Making the go/no-go decision is all about risk
Go assessment. One need to weigh the risks and
rewards of starting his/her business and
Decision decide whether the potential rewards are
worth the risks. If the risks are too high, one
may want to reconsider his/her business idea.
Than
ks