A feasibility study, as the name implies, is a study used to determine if a solution to a problem is viable or not. Ensuring this solution is legally, technically and economically feasible is the main goal of a feasibility study. In a feasibility study, before the solution is deemed feasible, the cost required to do the project and the value it delivers must be evaluated. In our company, we first consider the needs of the company and the goals they are trying to achieve. All of these factors may affect the outcome of the project are then put into consideration as well. Here is a brief overview on how we do project feasibility study for our clients.
Basic Overview of Our Feasibility Study Report
A feasibility study is a complex process as it involves a slew of different other processes to complete the report. In this article, we will try to break down the processes involved to make up our feasibility study report in general. Some of these processes may not be needed for some projects but most of the time they are vital to the entirety of the project to get the client/s started.
In this process, we gather all the data and information available to help support the cause and purpose of our client. Some of the most useful information are demographics, competition, statistics and even current trend or news revolving around the project and the industry to where it belongs. In one of our project feasibility analysis for our client which is a retail manufacturing company trying to expand their services to a new country, the data we gathered included customer behaviour and buying methods in the particular country. These data and information really paid huge dividends for the company as they were able to prepare well and modified their marketing and business model towards the data we presented to them.
Some consider this process to be under data gathering but we take a look at it in a different light because it serves to be very vital to the whole report. We consider all the possible expenses and then work around the budget set for the project. As much as possible, we look for the most cost-effective options to save some cash without compromising the quality of the client’s service or product. (Read our Cost Estimation article under our blog for more information.)
Once we have prepared all the available options for the client. We now give them some time to analyse their options and the best way to do this is to provide advantages and disadvantages of each option to help give the client a clearer picture of what they have. We also compare and contrast the prices they have to spend for each option for them to easily weigh in on their choices.
Provide a Project Timeline
Lastly, we provide a timeline for the entire project before it starts operating. Reasonable lead times for each quantity are also provided so the project manager will have an optimum timeline to look at for the business plan. There could be some changes along the way, but these factors are also covered within the project timeline as this covers iterations could inevitably happen. (See also Lead Time Analysis article under our blog for more information.)
You can also check out this great feasibility study article online for a different perspective on the topic.
Why Avail Our Feasibility Study Services?
In our contract manufacturing company, we always consider the needs of the company and the goals they are trying to achieve. All of these factors may affect the outcome of the project are then put into consideration.
A project feasibility report is useful whenever you are unsure if your project is worthwhile beforehand. It helps you to prevent project errors and risks without investing money; risk management, investment management and efficiency are all included in the final analysis. In short, our feasibility assessment considers your idea from every perspective to guarantee you are making a smart choice and lucrative investment.
- In-Time Prevention: Our product feasibility study lowers your risk and give you time to prevent any problems. We always perform product costing methods before we even look for suppliers for fear that the project may not be feasible. This prevents you from wasting time on something with a small payout.
- Smart Investment: A feasibility study not only finds risks but also opportunities. This reduces your time looking for a good investment. We create our feasibility study report for the purpose of making sure you will have the best information available for product costing and pricing.
- Complete Analysis: Much like demand forecasting, a feasibility study shows you what can go wrong and how to prevent it. Each project feasibility analysis checks for alternative specifications so that you can know all possible scenarios. Chiefly, we look at materials inputs for the larger parts.
The Manufacturing Feasibility Study Process
Why it Matters
It is important to realize a project feasibility study provides you with realistic expectations. Testing your idea is wildly important. Despite this, many people never take advantage of this manufacturing service and do a project feasibility study before they handle the production. As a result, their expectations are overly optimistic and often not aligned with what they can expect. Notably, people underestimate the price whereas they overestimate the production speed.
In general, the product feasibility study has three main points: price, quality and timeline. First, we check your product price and your expected price so as to reconcile the two features by product costing methods. Second, our feasibility analysis reviews the different components and materials from which the product is made to understand the biggest cost drivers. Third, we check your timeline for the purpose of seeing if the product can reach you in time.
Here is a great read on the importance of feasibility study in the world of business.
Want to Combine Services?
You should take advantage of our project feasibility service during the project development phase. Our study is a stand alone product but can be used with any package to reconcile product costing and pricing by product costing methods.
Each project requires customized attention. You can choose standard packages or go for a personal-driven solution. Make the best combination for your success and we will deliver it to you with great care!
See our Manufacturing Solutions