Feasibility

The Feasibility Study The objective of a feasibility study is to find out if an information project can be done, and if so, how. A feasibility study should tell management: Whether the improvement can be done; What are alternative solutions? What are the criteria for choosing among them? Is there a preferred alternative? After a feasibility study, management makes a go/no-go decision. • A feasibility study is a management-oriented activity Dimensions of Feasibility Operational -- how will the solution work? Technical -- is the technology needed available? Economic -- return on investment Schedule -- can the system be delivered on time? Constraints may be hard or soft

Feasibility Study Contents Purpose and scope of the study -- objectives, who commissioned it, who did it, sources of information, process used for the study, how long did it take,... Description of current situation -- organisational setting, current system(s). Related factors and constraints. Problems and requirements. Objectives of the new system. Possible alternatives -- including, possibly, the present situation. Criteria for comparison -- definition of the criteria Analysis of alternatives -- includes description of each alternative, evaluation with respect to criteria, including cost/benefit analysis and special implications. Recommendations -- what is recommended, implications, what to do next; sometimes it makes sense to recommend an interim solution and a permanent solution. Appendices that include supporting material.

Feasibility Analysis Matrix Description Option 1 Option2 Option3 Option 4 Option 5 Operational Feasibility Technical Schedule Economic Ranking Feasibility Analysis Matrix Candidate 1 Name Candidate 2 Name Candidate 3 Name Technical Feasibility Ranking

Economic Feasibility The bottom line for many improvements! Economic feasibility amounts to judging whether possible benefits of the proposed improvement are worthwhile. As soon as a specific solution has been identified, the manager can weigh the costs and benefits of each alternative.

The Basic Elements of Cost There are three primary elements of cost incurred in everyday business. They are Material costs re those associated with the provision of materials in order to manufacture a product/provide a service. Labour costs are incurred in the employment of people to manufacture a product/provide a service. Overhead costs - Overhead costs normally include payment for accommodation, utilities and administration expenses, including salaries of administrative employees.

Cost behaviours Direct - Indirect - Fixed - Semi-variable - Variable -

Direct costs are those which are directly attributable to the activity undertaken. Examples are: Pay costs of those employed specifically for this activity Equipment e.g. for a particular research contract Consumables e.g. stationery Travel costs associated with the project Indirect costs are those attributable to the project but for which there is no direct relationship. They are also known as 'overheads' Examples are: The cost of the office space used in rates, building costs, maintenance and so on Heat, Light, Power, Cleaning and other domestic services The cost of support services such as Finance Office, Estates, Academic Office and so on.

Fixed costs - These costs relate to the fixed factors of production and do not vary directly with the level of output. Examples of fixed costs include: rent and business rates, the depreciation in the value of capital equipment (plant and machinery) due to age and marketing and advertising costs. Variable costs vary directly with output. I.e. as production rises, a firm will face higher total variable costs because it needs to purchase extra resources to achieve an expansion of supply. Common examples of variable costs for a business include the costs of raw materials, labour costs and consumables. Semi variable costs contain elements of both fixed costs and variable costs Example: telephone charges include both rental – (fixed cost) and calls – (variable cost) Complete the Courier Activity

Risk Analysis All projects bring with them an element of Risk. Risk management is a mechanism to help you to predict and deal with events that might prevent project outcomes being delivered on time. The sort of areas you will be looking at for associated risks are: the activities along the timeline and any threats to completion and to timescales the project components: people, equipment, infrastructure requirements, other resources dealings with contractors and suppliers other projects that might have an impact organisational changes that might take place during the project outside influences that might affect the project such as changes in funding, government policy or the requirements of a funding body

Managing Risk Responses to the initial risk assessment may include: Risk Transfer - move the risk to someone more able to deal with it e.g. contract out the supply and support of the hardware infrastructure Risk Deferral - alter the plan to move some activities to a later date when the risk might be lessened e.g. wait till a statutory change has 'bedded-in' before changing a related process Risk Reduction - Either reduce the probability of the risk occurring or lessen the impact e.g. increase staffing resource on the project Risk Acceptance - Sometimes there's not a lot you can do other than accept the risk and ensure that contingency plans are in place Risk Avoidance - Eliminate the possibility of the risk occurring e.g. use alternative resources or technologies

Monitoring and Review