Technical Feasibility Study

26 April، 2020 Waleed A feasibility study
26 April، 2020 Waleed A No Comments

Technical Feasibility Study

The importance of the technical feasibility study comes in determining the project’s features accurately and geometrically, the proposed project life and the appropriate location (for projects that require spatial space), construction costs for the project and operation and the resources needed to operate the project optimally The proposed project and the appropriate location (for projects that require spatial space) , Construction costs for the project, operation and resources needed to operate the project in an optimal way, where several steps can be taken to study the technical feasibility, namely:

First: Determining the size of the project and its production capacity, as it helps the project owner to be effective and efficient in using all project resources in the optimal way and describing the characteristics of the product and methods of using it and benefiting from it. We can measure the production capacity of the project by estimating the number of units that can be produced in a specific time period within the cost limits.

Second: Defining production methods as they depend on the available technical and technological methods and their quality in achieving the desired project goals from it and producing the products and capabilities available for the project from material or human resources. The labor required for production must be indicated by the mechanism of waste management and disposal.

Third: After performing all the previous steps, the necessary technical means and equipment are determined from the quantity and quality of the equipment and machinery that the project requires for production and transportation according to the limits of the project’s capabilities, and its cost and comparison between them is estimated accordingly.

Fourth: The internal structure of the project, studying the project sections, the locations of production, storage and management places, public facilities, machinery and equipment. It is important to take into account the logical and serial division of the project and take into account the transition between these sections according to studied scientific foundations.

Fifth: Defining production inputs and costs in terms of buildings, machinery and equipment needed for production, transport, storage and types of raw materials needed to provide project products / services and their sources, as well as determining the need for transportation.

Sixth: Determining the human resources necessary for the operation of the project, including administrative, specialized technical work, maintenance work, security and cleaning services, and the required qualifications must be taken into consideration and determined, and determining the type of training courses for human resources, the wage structure for labor, training expenses, health insurance and transportation, and its money related to that.

Seventh: Estimating the foundational costs of the project (spaces and buildings – machinery and equipment – licenses – studies and consultations – wages).

Eighth: The final design of the project by defining the necessary requirements from material or human resources and designing the implementation stages of the project according to the desired goals of its establishment.

Ninth: Determine the project location according to its nature and study the characteristics of the site and the facilities needed to achieve consumer desires for the project products / services.

Tenth: estimating the project costs based on the information analyzed in the market study and the technical study. The costs are represented in the investment costs, which are: capital costs (fixed assets) such as buildings, lands, equipment, working capital (operating), an emergency reserve amount and other costs (non-material) that It was spent on the project before it was started, such as: construction expenses, feasibility study, engineering designs and drawings, etc.