Feasibility Study: The First Thing We FRIMA Must Do
What is a Feasibility Study?
Conducting a feasibility study is an essential step in evaluating the practicality of a project or system. This comprehensive analysis involves assessing the strengths, weaknesses, opportunities, and threats of a potential business or venture, as well as determining the necessary resources and likelihood of success. To determine feasibility, it is crucial to consider both the required cost and expected value. By conducting a thorough feasibility study, decision-makers can make informed choices that will maximize their chances for success.
A feasibility study is an in-depth assessment of a proposed project that examines all key factors necessary for its success and determines the likelihood of its viability. The primary measure of business success is often determined by the return on investment (ROI) and the profitability that the project will bring.
During a feasibility study, the practicality of a proposed plan or project is assessed. This evaluation involves determining the viability and potential success of the project or venture in question.
Make a Go/No-Go Decision
Understanding when to cut your losses is crucial when undertaking a project. This decision is often made during the go/no-go phase of a feasibility study. The go/no-go decision plays a pivotal role in assessing the viability of your business idea and whether it warrants further pursuit or not.
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
