Feasibility Study: The first thing we FRIMA must do!
What is a Feasibility Study?
A feasibility study evaluates a project’s or system’s practicality.
As part of a feasibility study, the objective and rational analysis of a potential business or venture is conducted to determine its strengths and weaknesses, potential opportunities and threats, resources required to carry out, and ultimate success prospects. When judging feasibility, two criteria should be considered: the needed cost and expected value.
A feasibility study is a comprehensive evaluation of a proposed project that evaluates all factors critical to its success in order to assess its likelihood of success. Business success can be defined primarily in terms of ROI, the number of profits the project will generate.
In a feasibility study, a proposed plan or project is evaluated for its practicality. As part of a feasibility study, a project or venture is evaluated for its viability in order to determine whether it will be successful.
Make a Go/No-Go Decision
It is important to know when to cut your losses when starting a project. The go/no-go decision in a feasibility study comes in. The go/no-go decision is a key part of a feasibility study, and it can help you determine whether or not your business idea is worth pursuing.
Making the go/no-go decision is all about risk assessment. You need to weigh the risks and rewards of starting your business and decide whether the potential rewards are worth the risks. If the risks are too high, you may reconsider your business idea.
In FRIMA, we always take care of the project and make the feasibility report before starting a CNC machined parts project.
Here is an example of one of our projects for the report.
Importance of Feasibility Study
The importance of a study is based on an organizational desire to “get it right” before committing resources, time, or budget. A feasibility study might uncover new ideas that could completely change a project’s scope. It’s best to make these determinations in advance, rather than to jump in and learn that the project won’t work. Conducting is always beneficial to the project as it gives you and other stakeholders a clear picture of the proposed project.
Below are some key benefits of conducting a feasibility study:
- Improves project teams’ focus
- Identifies new opportunities
- Provides valuable information for a “go/no-go” decision
- Narrows the business alternatives
- Identifies a valid reason to undertake the project
- Enhances the success rate by evaluating multiple parameters
- Aids decision-making on the project
- Identifies reasons not to proceed
If you have any new projects, please feel free to contact us at www.frimaparts.com. Or just send us an email at [email protected].
Apr 21, 2023
