1. By: Professor Wilmer Arellano
Feasibility Analysis
By: Professor Wilmer Arellano

2. "Prevention is better than cure"
is hardly practiced and
it is only when a surprise boils into a crisis that managers react.
Hariharan
Controller
Perstorp Aegis Chemicals Pvt Ltd.

3. Overview Feasibility Definitions Goals Types of Feasibility
Feasibility Assessment
1 to 5 Score
Weighted Score
Pugh’s Method
Risk

4. Definitions for Feasibility
The quality of being doable
WordNet® 2.1, © 2005 Princeton University
A feasibility study is:
a detailed analysis of a company and
its operations that is conducted in order to
predict the results of a specific future course of action.

5. Goals Will the project be a success?
The objective of a feasibility study is:
To find out if a project can be done:

6. Types of Feasibility Technical Resource Economic Schedule Operational
Cultural
Legal
Marketing

7. Technical Feasibility
Is the project possible with current technology?
Does the technology exist at all?
Is it available locally?
Can it be obtained?
Are fundamentally new inventions required?
How much Technical Risk is there?

8. Resource Feasibility Do we have sufficient skills?
Do we have sufficient equipment?
Do we have sufficient number of people?
How much Resource Risk is there?

9. Economic Feasibility (for your project)
Is the project possible, given resource constraints?
Do we have the funds?
Do we have a sponsor?
How much Economic Risk is there?

10. Economic Feasibility (for the industry)
Is the project possible, given resource constraints?
What benefits will result from the system?
Both tangible and intangible benefits
Quantify them!
What are the development and operational costs?
Are the benefits worth the costs?
How much Economic Risk is there?

11. Economic Feasibility (for the industry)
Tangible Benefits
Readily quantified as $ values, examples:
decreased costs
increased sales
error reductions
increased throughput/efficiency
increased margin on sales
more effective use of staff time
Intangible benefits
Difficult to quantify, but maybe more important, examples:
improved staff morale
increased flexibility of operation
higher quality products/services
better customer relations

12. Schedule Feasibility
What are the chances of meeting the intermediate mileposts?
What are the chances of meeting the PDR (Preliminary Design Review) requirements?
What are the chances of meeting the CDR (Critical Design Review) requirements?

13. Feasibility Analysis
The PDR is a multi-disciplined technical review to ensure that the system under review can proceed into detailed design, and can meet the stated performance requirements within cost (program budget), schedule (program schedule), risk, and other system constraints.
The CDR is a multi-disciplined technical review to ensure that the system under review can proceed into system fabrication, demonstration, and test; and can meet the stated performance requirements within cost (program budget), schedule (program schedule), risk, and other system constraints.

14. Cultural Feasibility Social acceptability?
Will there be a positive impact on the local culture.
Will there be a positive impact on general culture.

15. Cultural Feasibility For the purpose of your proposal:
Include questions on Cultural Feasibility on your survey
Write the section of your proposal about social impact
Use your new knowledge and include a Cultural Feasibility item in your Feasibility section

16. Legal Feasibility Organizational conflicts and policies?
Laws or regulations impeding the Project?
Laws of regulation limiting the project

17. Legal Feasibility For the purpose of your proposal:
Do a search to find out laws or rules that may oppose or limit your project
Include a Legal Feasibility item in your analysis in your Feasibility section

18. Marketing Feasibility
Will the general public accept the product?

19. Marketing Feasibility
Include questions on Marketing Feasibility on your survey
Use the information provided by the users on the survey and add a Marketing Feasibility item in your feasibility assessment table.
Write a separate section of your proposal about Marketability. Provide strong arguments of your project Marketability

20. Operational Feasibility (for the industry)
Urgency of the problem and the acceptability of any solution:
If the system is developed, will it be used?
Potential labor objections?
Manager resistance?

21. Feasibility Assessment
Feasibility is Measured Against Attributes
Pugh’s Method. All attributes has the same weight. Count + vs. –
1 to 5 Scale. By using a scale we can obtain information of the possible causes for failure
Weighted Scale. Same as 1 to 5 scale the different attributes contribute to the total in different proportion. (The one we use)

22. Pugh’s Method Example
This is not a template, use your own attributes

23. 1 to 5 Scale Example
This is not a template, use your own attributes

24. Weighted Scale Example
This is not a template, use your own attributes

25. Fit your table in one page
It looks better

26. Obtaining Weights Example 1

27. Weighted Scale Example 1
This is not a template, use your own attributes

28. Obtaining Weights Example 1

29. Weighted Scale Example 1
This is not a template, use your own attributes

30. Follow your Analysis
Trust yourself!

31. Remember
You must include all the feasibility items, not just the ones in my example

32. Use your own attributes, do not copy and paste mine
Remember
Use your own attributes, do not copy and paste mine

33. Risk The possibility of suffering loss
Risk involves uncertainty and loss:
Uncertainty: The degree of certainty about whether the risk will happen.
Loss: If the risk becomes a reality, unwanted consequences or losses will occur.

34. Risk Categories Technical Resource Economic Schedule Cultural Legal
Marketing
Operational

35. Proactive Risk Management
“The purpose of risk management is to identify potential problems before they occur so that action can be taken to reduce or eliminate the likelihood and/or impact of these problems should they occur.”

36. Risk Assessment Risk Exposure Matrix
Clear and well defined risk acceptance thresholds are required in order to define the level of risk that can be tolerated.
The Exposure Matrix can be used to prevent entering into a project
You may use a fishbone diagram to discover risks

37. Risk Management
In ongoing projects, the Exposure Matrix can be used to as a managing tool
Class I: Risks that are below the risk acceptance threshold and do not require active management
Class II: Risks that lie on the risk acceptance threshold and require active monitoring
Class III: Risks that exceed the risk acceptance threshold and require proactive management
Class IV: Risks that significantly exceed the risk acceptance threshold and urgent and immediate attention if they happen

38. They Can make you: Unsuccessful Unhappy
Avoid Class IV Risks!
They Can make you:
Unsuccessful
Unhappy

39. Fault Tree Analysis

40. Continuous Risk Management

41. References
Dorofee, A. J., Walker, J. A., Alberts, C. J., Higuera, R. P., Murray, T. J., and Williams, R. J. Continuous Risk Management Guidebook.
Pressman, R. S Software Engineering: A Practitioner’s Approach. New York, USA: McGraw Hill.
Risk analysis and management guidance
June 2005,

42. Review Definitions Goals Types of feasibility Feasibility Assessment
1 to 5 Score
Weighted Score
Pugh’s Method
Risk

43. &
Questions
Answers