Feasibility report:

Pre feasibility report, Techno economic feasibility report, Detailed

Project Report

What is Feasibility Study/ Report?

A feasibility study is particularly an analysis that takes into consideration all
the relevant factors of a project — including economic, technical, legal, and
scheduling considerations. The goal is to determine the probability of
successfully completing the project within the specified timeline.
Project managers often use feasibility study to weigh the pros and cons of
taking up the project before investing the company’s time and resources.
According to experts, a feasibility study provides a lot of crucial information
to the company’s management and prevents it from blindly venturing into
risky businesses.
Experts believe a detailed feasibility study comprises an in-depth analysis of
the historical background of the business or project, including but not limited
to the descriptions of the products or service, accounting statements, details of
the operation and management, market share and policies, financial data, legal
requirements, tax obligations, etc. You can check out a feasibility study
example online to get a clear idea.

1. Pre feasibility report

A pre-feasibility report is a preliminary assessment conducted to gauge the
potential viability of a project before a full-scale feasibility study is
undertaken. It provides an early indication of whether a project idea is worth
pursuing and helps stakeholders decide whether to proceed with a more
detailed analysis. Here’s what a pre-feasibility report typically includes:

1. Project Overview: A brief description of the project, its objectives,

and its scope.

2. Preliminary Market Analysis: An initial assessment of market

demand, potential customers, and competition.

3. Technical Considerations: An overview of the technical requirements

and potential challenges related to the project.

4. Preliminary Financial Estimates: Basic cost estimates, revenue

projections, and financial feasibility indicators.

5. Operational Aspects: Initial evaluation of the operational requirements

and resources needed.

6. Legal and Regulatory Review: An early check of any legal or

regulatory issues that might impact the project.

7. Risk Identification: Initial identification of potential risks and

challenges.

8. Next Steps: Recommendations for further investigation or steps to take

if the project appears promising.

A pre-feasibility report is used to filter out unviable projects early in the

process, saving time and resources by focusing efforts only on those ideas
that show promise.
2. Techno economic feasibility report

A Techno-Economic Feasibility Report (TEFR) is a comprehensive

evaluation of a proposed project that considers both technical and
commercial aspects. It helps stakeholders make informed investment
decisions by analyzing various aspects of the project's feasibility and
potential success.

A TEFR can include:

Technical Analysis:
 Technology Assessment: Examination of the technology to be used,
including its current status, development needs, and compatibility.
 Technical Requirements: Identification of the equipment, materials,
and expertise required.
 Technical Feasibility: Evaluation of whether the proposed technology
can be successfully implemented and if it meets the project's needs.

Economic Analysis:
 Cost Estimates: Detailed breakdown of capital and operational costs.
 Revenue Projections: Forecast of potential income from the project.
 Financial Viability: Analysis of profitability, return on investment
(ROI), and financial risks

Other considerations: Raw materials and fuel, plant siting, location,

and infrastructure, environment, and operating costs
 A TEFR can also:
 Establish the project's technical feasibility and financial viability
 Analyze the project's risks
 List the immediate steps that must be followed
 Provide a thorough review of the project
 Give a deeper understanding of the variables that will eventually factor
in making plans

3. Detailed Project Report

It provides a detailed examination of the project's technical, financial,
operational, and market aspects to determine whether the project is
feasible. Here’s a structured outline of what a DPR for a feasibility study
typically includes:
1. Executive Summary
 Overview: Brief summary of the project, including its objectives and
main findings.
2. Project Description
 Scope: Detailed description of the project scope, including the major
components and boundaries.
3. Technical Feasibility
 Technology Assessment: Evaluation of the technology or methods to
be used, including current status and development needs.
 Design and Engineering: Detailed designs, technical specifications,
and engineering plans.
 Infrastructure Requirements: Assessment of infrastructure needs,
such as facilities, equipment, and resources.
4. Market Analysis
 Demand Assessment: Analysis of market demand for the project’s
product or service.
 Competitive Analysis: Overview of the competitive landscape,
including major competitors and market position.
 Target Market: Identification and characteristics of the target
audience or customer base.
5. Financial Feasibility
 Cost Estimates: Detailed breakdown of capital and operational costs.
 Revenue Projections: Forecast of potential revenues and profitability.
 Funding Requirements: Information on the total funding required and
sources of potential funding.
6. Operational Plan
 Implementation Plan: Detailed plan for project execution, including
timelines, milestones, and key activities.
 Resource Planning: Identification of resources needed, such as human
resources, materials, and equipment.
 Operational Workflow: Description of operational processes and
workflows.
7. Legal and Regulatory Considerations
 Regulatory Requirements: Overview of legal and regulatory
requirements relevant to the project.
  Permits and Licenses: Identification of necessary permits, licenses,
and approvals.
8. Risk Assessment and Management
 Risk Identification: Detailed identification of potential risks associated
with the project.
 Risk Analysis: Evaluation of the likelihood and impact of identified
risks.
 Mitigation Strategies: Proposed strategies for managing or mitigating
risks.
A Detailed Project Report for a feasibility study is crucial for making
informed decisions about whether to move forward with a project. It
provides stakeholders with a thorough understanding of the project's
viability from multiple perspectives and helps in securing necessary
approvals and funding.

Contents of Feasibility report:

1. Raw Material Survey
 Raw Material Requirements: Detailed description of the raw
materials needed for the project.
 Sources and Suppliers: Information on potential sources and suppliers
for the raw materials.
 Cost Analysis: Estimation of the costs associated with acquiring the
raw materials.
 Availability and Quality: Assessment of the availability, quality, and
reliability of the raw materials.
  Logistics and Storage: Considerations for transportation, handling,
and storage of raw materials.
2. Market Survey and Demand Study
 Market Overview: Analysis of the current market landscape, including
size, growth trends, and key players.
 Demand Analysis: Evaluation of the demand for the product or
service, including target market segments and customer needs.
 Competitive Analysis: Examination of competitors, their market share,
and competitive strategies.
 Market Trends: Identification of emerging trends, consumer
preferences, and potential opportunities.
 Sales Projections: Forecast of potential sales volumes and revenue.
3. Technical Study
 Technology Assessment: Evaluation of the technology or methods
required for the project, including current status and development
needs.
 Technical Specifications: Detailed specifications of the technology,
processes, and equipment to be used.
 Design and Engineering: Technical design, engineering plans, and
feasibility of proposed solutions.
 Operational Requirements: Analysis of operational needs, including
machinery, facilities, and maintenance.
4. Location Survey
 Site Analysis: Evaluation of potential locations for the project,
including geographical, environmental, and infrastructural factors.
  Accessibility: Assessment of accessibility to transportation networks,
suppliers, and markets.
 Environmental Impact: Examination of environmental considerations
and compliance with regulations.
 Utilities and Infrastructure: Availability of necessary utilities (e.g.,
water, electricity) and infrastructure (e.g., roads, telecommunications).
 Local Conditions: Analysis of local conditions that could impact
project implementation, such as climate, regulations, and community
support.
5. Financial Survey
 Cost Estimates: Detailed breakdown of capital and operational costs,
including initial investment and ongoing expenses.
 Revenue Projections: Forecast of potential income and profitability
based on market demand and pricing strategies.
 Funding Requirements: Identification of total funding needs and
potential sources of funding.
 Financial Viability: Analysis of financial indicators such as return on
investment (ROI), payback period, net present value (NPV), and cash
flow projections.
 Risk Analysis: Evaluation of financial risks and strategies for
managing them.
This structured approach ensures that all critical aspects of the feasibility
study are thoroughly examined, providing stakeholders with a
comprehensive understanding of the project's potential and viability.
Types of Cost Estimates
Cost estimates are crucial for project planning and budgeting, helping to
forecast expenses and ensure financial feasibility. Various types of cost
estimates cater to different stages of a project and different levels of detail.
Here are the main types:

1. Preliminary Estimate

 Purpose: Provides a broad approximation of costs based on limited

information, typically used in the early stages of project planning.

 Usage: Helps in initial budgeting and decision-making to determine if

the project is worth pursuing.

2. Conceptual Estimate (Concept estimate or feasibility estimate.)

 Purpose: Offers a more refined estimate based on conceptual design or

project scope.

 Usage: Used to develop project budgets, assess feasibility, and obtain

preliminary approval or funding.

3. Detailed Estimate : Definitive estimate or accurate estimate.

 Purpose: Provides a comprehensive and detailed breakdown of costs,

including labor, materials, equipment, and overheads.

 Usage: Used for finalizing budgets, obtaining contracts, and detailed

project planning.

4. Bid Estimate: Tender estimate.

  Purpose: Prepared by contractors or vendors to submit a bid for a
project, detailing their expected costs and proposed prices.

 Usage: Used in the procurement process to win contracts and establish

final project costs.

5. Control Estimate: Budgetary estimate or baseline estimate.

 Purpose: Used to establish the approved budget for the project, against
which actual costs will be monitored and controlled.

 Usage: Helps in tracking performance and managing financial aspects

of the project.

6. Parametric Estimate

 Purpose: Uses statistical relationships between historical data and

project variables to estimate costs.

 Usage: Useful for projects with similar characteristics to past projects,

providing a cost estimate based on defined parameters.

Each type of cost estimate serves different purposes and is used at various
stages of a project to aid in budgeting, planning, and decision-making.

Project selection Criteria by feasibility report

When using a feasibility report to select projects, the criteria are focused on
assessing whether a project is viable and worth pursuing based on a detailed
evaluation. Here’s how you can structure project selection criteria derived
from a feasibility report:

1. Technical Feasibility

 Technology Compatibility: Assess whether the technology required

for the project is available, mature, and compatible with existing
systems.

 Technical Expertise: Evaluate if the necessary technical skills and

knowledge are available within the organization or can be acquired.

 Implementation Challenges: Identify potential technical hurdles and

the feasibility of overcoming them.

2. Financial Feasibility

 Cost Estimates: Review detailed cost estimates to ensure they are

realistic and cover all project aspects (capital, operational, etc.).

 Revenue Projections: Examine projected revenue and profitability to

determine if the project is financially viable.

 Return on Investment (ROI): Calculate the expected ROI and

compare it to industry benchmarks and organizational expectations.

 Funding Requirements: Assess the total funding needed and identify

potential sources of funding.
3. Market Feasibility

 Market Demand: Analyze the demand for the project’s product or

service based on market research and demand forecasts.

 Competitive Analysis: Evaluate the competitive landscape to

determine the project’s potential market position and competitive
advantage.

 Target Market: Ensure the project targets a viable and sufficiently

large market segment.

4. Operational Feasibility

 Resource Availability: Assess whether the necessary resources

(human, material, and technological) are available and can be
efficiently allocated.

 Operational Impact: Evaluate how the project will integrate with

existing operations and processes, and any operational changes
required.

 Scalability: Determine the project’s potential for scaling up or adapting

to future needs.

5. Location Feasibility
  Site Suitability: Evaluate the suitability of potential locations for the
project in terms of logistics, infrastructure, and environmental
conditions.

 Accessibility: Assess the accessibility of the location for suppliers,

customers, and operational needs.

 Regulatory Compliance: Ensure the location complies with local

regulations and zoning laws.

6. Legal and Regulatory Feasibility

 Regulatory Requirements: Identify all legal and regulatory

requirements the project must meet and evaluate the ease of
compliance.

 Permits and Licenses: Determine the permits and licenses required

and the process for obtaining them.

7. Environmental and Social Feasibility

 Environmental Impact: Assess the environmental impact of the

project and its alignment with sustainability goals.

 Social Impact: Evaluate the potential social impact, including effects

on the community, employment, and public perception.

8. Risk Assessment

 Risk Identification: Identify potential risks associated with the project,

including technical, financial, operational, and market risks.
  Risk Mitigation: Evaluate the strategies and plans in place to manage
and mitigate identified risks.

9. Project Timeline and Schedule

 Project Duration: Review the proposed timeline and ensure it is

realistic given the project scope and available resources.

 Milestones and Deliverables: Evaluate the feasibility of achieving key

milestones and deliverables within the proposed schedule.

10. Stakeholder Impact

 Stakeholder Needs: Consider the needs and expectations of key

stakeholders and how the project addresses them.

 Stakeholder Engagement: Assess the plan for engaging stakeholders

and managing their input and feedback.

Using these criteria derived from a feasibility report ensures that projects are
evaluated thoroughly across all critical dimensions before making a decision.
This approach helps in selecting projects that are not only feasible but also
align with organizational goals and have a high likelihood of success.