A feasibility study is an integral process in manufacturing to make sure a solution is viable to the problem or not. It makes sure the project is economically feasible so the business owner can be warned to pursue the project or not. A feasibility study is not just a “yes or no” stop whether to start a project. It also analyzes factors to the project which can be adjusted or modified to make the solution feasible. The total cost of the project along with its profit results are weighed accordingly and put into consideration. Here is a simple overview of how we make a feasibility study in manufacturing.
Overview of Our Feasibility Study Process
Doing a feasibility study report involves a lot of sub-processes. In this article, we will break down each process involved in how we come up with a feasibility study report. There are some processes that may not be needed for certain projects but most of the time vital to the entirety of most projects to help the client/s get started.
1. Data Gathering
During this process, we gather all data and information available to help support our client’s project. The usual data we gather are demographics, statistics, market competition, industry reports, and even the latest trends and happenings in the industry to where the project belongs. Project feasibility analysis for our clients in the manufacturing industry usually involves service expansion in a new country. We gather data involving customer behavior and market tendencies for them. These data and information paid huge dividends for the clients later on as they were able to prepare at a business standpoint.
2. Cost Estimation
We jot down all the possible expenses involved in the project and set a feasible budget for it. If a client already has a set budget, we work around that budget and consider all the expenses accordingly. We always look for the most cost-effective options to save money without compromising quality in support of the client’s service or product.
3. Data Analysis
Once we have all the data and information including the cost estimates, we allow the clients to assess their options. We assist in the process of data analysis by giving them the pros and cons of each option to help them weigh on their decision. We will also compare and contrast different options towards expenditures and prices to give them much freedom for their business decision.
4. Provide a Project Timeline
Lastly, we give our client/s a timeline for the entire project before it starts operating. Lead times for each process are tightly considered so the project manager can have an optimum timeline to look at for the business plan. There could be inevitable changes along the way but these factors are already covered in the project timeline.
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!
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