Written by Rivary Finan Hernawan on 28/03/2024
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.
Feasibility Study (FS) serves as a fundamental tool in project management, providing essential insights into the viabilities of projects and their potential. This analytical technique is indispensable for decision-making processes by enabling teams to assess project feasibility, human resource needs, and logistical requirements. Feasibility Study facilitates an analysis of the return on investment that is crucial for informed decision-making. This article will delve into the intricacies of Feasibility Study and explore its practical applications in project management.
Feasibility Study is the culmination of research conducted by experts from various entities, as defined by the Ministerial Regulation of Bappenas Number 1 of 2009. These entities can be ministries, institutions, or regional governments. This comprehensive study provides a detailed illustration of the appropriateness of an activity which serves as a basis for decision-making in project implementation. Typically conducted in the early stages of a project, the Feasibility Study forms an integral part of the main design stage during the planning period. It aims to objectively reveal the strengths and weaknesses of proposed projects by guiding project managers in identifying opportunities, threats, and resource requirements.
Feasibility Study holds significant importance for companies by offering a comprehensive understanding of all aspects in a project or plan. It serves as a proactive measure to anticipate potential challenges and mitigate risks before project implementation. By uncovering new insights and altering project plans, a feasibility study enhances the likelihood of project success. Some key advantages of conducting a feasibility report in project management include:
A comprehensive business feasibility study encompasses several essential aspects that must be thoroughly researched. These aspects include:
Feasibility studies are most effective when conducted early in the project lifecycle, particularly during the planning and design stages. This timing allows businesses to assess the viability of their projects before significant resources are committed. By conducting feasibility studies at the outset, companies can make informed decisions about whether to proceed with their projects, thus minimizing the risk of potential losses.
A feasibility study serves to elucidate the significance of a project and its anticipated outcomes, providing valuable insights for project stakeholders. Once completed, the study is presented to the project owner for further examination and familiarization with all its facets.
Here are how Putranto Alliance can assist:
While both are usually carried out in the early stage of a project, there is a core difference between the two. Concept Planning generates the concept of the project, while Feasibility Study assesses the viability of the concept. To ensure impartial judgment and transparent processes, the two processes are usually carried out separately by independent parties.
While practices may vary depending on the aims and demands of the projects, several common practices are typically found in a feasibility study:
The outcomes of a Feasibility Study may include a recommendation to:
Some components often found in a feasibility study report include, but are not limited to:
Putranto Alliance comprehensively analyzes various aspects of the proposed business venture when conducting feasibility studies, such as:
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