09 - civil engineering project feasibility

8/12/2019 09 - Civil Engineering Project Feasibility

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ENGINEERING PROJECTFEASIBILITY STUDY

Dr. Qaiser Iqbal (CED UET Peshawar)


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Project Feasibility

1.Viability of Idea

2. Analyzing Feasibility ( Possibility) of Project Possibility of Completion ? Will it be Successful3.Reasonable likelihood - constraintsWill Not prevent a project from meeting key

objectives4.Synonym: Achievability

5.Plng & Organisation Procedure

-To Ensure Project is Effective

-It will work.


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Feasibility

Reasonable likelihood thatConstraints onTime& Other Resources

will notPrevent a Projectfrom

meeting itsKey Objectives


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What is Feasibility?

Capable of being done,with means at Hand &

Circumstances, asthey are.

Purpose of a Feasibility Study

To help assessViability of a business/project/construction/

serives idea-

Technically, Operationally & Economically


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Is the disciplined & documented process ofthinking through an idea from its Logicalbeginning to its Logical End.

This is to determine its Potential to be a viableproject given realities of the Economic & Socialenvironment in which it will operate


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Provide Client with a solid foundation uponwhich a project is built.

Feasibility Study Provides

Concept identification, Estimates of supportable market, Design parameters, Estimates, Revenue projections Net warranted investment.

Essentially Road map of project


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Process of Analysis

Identifyproblem oropportunity

Set upfeasibility

study

Define scopeand

objectives

Carry outdifferent

aspectsof the study

Recommend

proceed/shelve

Evaluatealternativesdevelop/buy


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Scope Statement

A written scope statement includes:

Project JustificationProject ObjectivesMajor DeliverablesCriteria: Project/ or PhaseSuccessfully Completed


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Project Charter

Formally Recognizes Existence of aProject

Gives Project Manager Authority to ApplyResources to Project.

Product/project to be Delivered ?

Refers to Business Need Project isAddressings


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Types of Feasibility

Technical Feasibility

Managerial Feasibility

Economic Feasibility

Financial FeasibilityCultural Feasibility

Social FeasibilitySafety Feasibility

Political Feasibility

Environmental Feasibility

Market Feasibility


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Tech Feasibility- First systematic

investigation of Project Design Viability.Foundation of all other FS .

- Assessment of a Project Capabilities.-Investigation of Technical & Physical Parameters

Technical Feasibility Reviews:

-Technical Capability of Human Resource

-Capability of Available at Technical side

Foreign consultants Role -

-Too rigid, & Advanced Tech Specification plant/

equipment not available locally

- Cannot be met by Country.

Question is Can it be built?


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Technical Feasibility (TF)Anticipate Broader Problems with Questions:

1. Adequate Choice of Available Technologies forAlternative Designpurposes, considering:

a. Physical layoutb. Engineering designc. Availability of raw materials?

2. Costs of Constructing & OperatingP-Facilities - Servicesa) Machinery, b ) Equipment, c) Spare Parts?

3. Manpower Requirements:a) From professional to laborb) locally available?c) Responses vary sector to sector (e.g. road to dam)


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Technical Feasibility (TF) Contd..

Primary task of TF is Blueprinting:a) Manpower Needsb) Resources, and Designc) Provide Design Alternativesd) A Choice of Available Technologies,

& Cost estimates for each alternative.


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+/,%-01#-#2"3%#' 4(5/) 6+1 47Evaluates Strategy of company in Carrying OutProject Activities.

Providing info & Guidelines-

Used to improve overall Project Administration.

Examines 4 Components:

A. External linkages,b. Internal organization,c. Personnel, andd. Management plan


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Economic Study (Econ S)

Examines a Proposed Project in terms

of:

Net Contribution to Industry /Economy

& To society.

Address 3 Related Questions:

1. Project Responsive to Urgent Present orAnticipated Economic/Socialneed?

2. Planned Economics of project Serve IntendedPurpose?3. Services Proposed to be Performed by Project

4. Benefits - Justify Project Cost?Return rates etc.


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Economic Study (Ec S)Requires Study of all ofEcon Implications of

Project:a)Demand & Supply of All Project Operations

b)Projects Ability to Increase employmentc)Projects Multiplier" Effects (-Increase Purchase of

goodsEffect)d) Effect on increase in Publics Sector Revenue (income tax, sales),

e) use of Locally Available resources.

Assess Projects Net Contribution to Econ/social welfare ofcommunity.

Comparison of Econ & SocialBenefits-generated

From Project -Vs Costs of Construction & Operations.

Benefits > CostProject is Economically feasible. Profitability analysis isconducted.


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Financial Feasibility-Capability of Proj Org -Raise Funds to implement

proposed project from funding bodies (WB,

ADB, IMF, various regional forums)(off course different from economic feasibility)

Cultural Feasibility-

Compatibility of Proposed Project vs cultural

setup of Proj environmentSocial Feasibility-

Addresses influences of Project on Social

System in Proj Environment

Safety FeasibilityConsidered in Project Planning.

Analysis if Project Capable of Implementation

& Operated Safely -Minimal Adverse effects on

masses.


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Environmental Feasibility-

-Concern must be shown-Action must be taken to address any &

all environmental concerns raised or anticipated-Mega Dams issues (Aswan Dam)

- New Murree Project

Political FeasibilityReferred - Politically Correct Project."

Political considerations often dictatedirection for a proposed project

(Kalabagh dam)


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Proj Feasibility

Market Feasibility-Market Variability & impact on Project.

Not confused with Econ/ F

Market needs analysis to view:a) Potential Impacts of Market Demand

b) Competitive Activities, etc.

c) Divertible" Market Share Available

e.g. Comparison of Furnace oil powergeneration with Hydal in PAK

09 - civil engineering project feasibility

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