Feasibility Studies Dr. Muslim Suardi, MSi., Apt. Faculty of Pharmacy University of Andalas

Feasibility Studies “The study related with several aspects: Law, Economic-Social & Culture,Market & Marketing, Technical and technology, manajement &finance. All of data is used for analysing and decide what eve the business could be builde, cancel or stop at all.

FS & Stake Holders FS is needed by: Investor as initiator Bank as creditor Governement as fasilitator on regulation

The Importancy of FS by Stake Holders Investor: responsible in profit to be gained from investation, Bank: responsible for the credit savety & dan kelancaran pengembaliannya Governement: benefit of investation on macro economic, job oppurtunities, etc.

Feasibility Studies FS Aim to objectively & rationally uncover the strengths & weaknesses of an existing business or proposed venture, opportunities & threats as presented by the environment, the resources required to carry through, & ultimately the prospects for success. [1][2]

2 Criteria to Judge Feasibility are cost required and value to be attained. [3] [3] As such, a well-designed FS should provide a historical background of the business or project, description of the product or service, accounting statements, details of the operations & management, marketing research & policies, financial data, legal requirements & tax obligations. [1] Generally, FS precede technical development & project implementation

5 Common Factors The acronym TELOS refers to the five areas of feasibility: Technical Economic Legal Operational Scheduling

1. Technology & System Feasibility The assessment is based on an outline design of system requirements, to determine whether the company has the technical expertise to handle completion of the project.

Several Considerations A brief description of the business to assess more possible factor/s which could affect the study The part of the business being examined The human & economic factor The possible solutions to the problems At this level, the concern is whether the proposal is both technically & legally feasible (assuming moderate cost).

2. Economic Feasibility Economic analysis is the most frequently used method for evaluating the effectiveness of a new system. More commonly known as cost/benefit analysis, the procedure is to determine the benefits and savings that are expected from a candidate system and compare them with costs. If benefits outweigh costs, then the decision is made to design and implement the system.cost/benefit analysis

Cost-Benefit Consideration An entrepreneur must accurately weigh the cost versus benefits before taking an action.

Cost-based Study It is important to identify cost and benefit factors, which can be categorized as follows: 1. Development costs 2. Operating costs. This is an analysis of the costs to be incurred in the system and the benefits derivable out of the system.

Time-based Study This is an analysis of the time required to achieve a return on investments. The future value of a project is also a factor.

3. Legal Feasibility Determines whether the proposed system conflicts with legal requirements, e.g. a data processing system must comply with the local Data Protection Acts.

4. Operational Feasibility Operational feasibility is a measure of how well a proposed system solves the problems, and takes advantage of the opportunities identified during scope definition and how it satisfies the requirements identified in the requirements analysis phase of system development. [4] [4]

5. Schedule Feasibility A project will fail if it takes too long to be completed before it is useful. Typically this means estimating how long the system will take to develop, and if it can be completed in a given time period using some methods like payback period.

Schedule Feasibility Schedule feasibility is a measure of how reasonable the project timetable is. Given our technical expertise, are the project deadlines reasonable? Some projects are initiated with specific deadlines. You need to determine whether the deadlines are mandatory or desirable.

Other Feasibility Factors Market & real estate feasibility Resource feasibility Cultural feasibility Financial feasibility