Alpha University College (AUC)

Guideline on Project Feasibility Study Report

(In partial fulfillment of the course: SEMINAR IN PROJECT MANAGEMENT - MBA-PM 724)

This is a living, breathing document that provides

students a guideline to the preparation and submission
of project feasibility study report, which is expected to
be unique and original in terms of entrepreneurship
flair and line of business thinking.

In order to develop the project feasibility study report

to the full-scale, students are expected to synthesis
and utilize the knowledge gained while attending the
full program. This course gives students a great
opportunity to develop a project feasibility report,
which they may pursue and realize in life.

To foster common understanding on the assignment

and guide students to come up with sound feasibility
report, the contents of the feasibility report with brief
descriptions are provided. So as to ensure the quality,
the submissions and evaluations will be thus made
phase by phase based on the contents of the feasibility
report.

The submission and evaluation will be conducted in the

second week of Oct., 2019. Note that all students are
required to submit the copy of their project feasibility
study report to the instructor 5 days ahead of the
presentation using the following e.mail address:
ftesgerajetu@yahoo.com.

Once students convinced that their project feasibility

study report is in good shape as per the guideline, the
final submission of the full feasibility report and its
presentation will be made on the date indicated above.
The feasibility report carries 50 percent of the final
evaluation.

Fanta Tesgera (PhD) Seminar Course Feasibility Study and Report Guideline Page 2
 Alpha University College (AUC)

Project Feasibility Study Report

(Title of the Project)

Prepared by (Student Name):

In partial fulfillment of the course: SEMINAR IN PROJECT MANAGEMENT (MBA-PM 724)

Fanta Tesgera (PhD) Seminar Course Feasibility Study and Report Guideline Page 3
 Date: 

Table of Contents

1 PROJECT DESCRIPTION................................................................................................................................................5
1.1 CONDUCT SITUATION ANALYSIS............................................................................................................................. 5
1.2 DEVELOP BUSINESS CASE...................................................................................................................................... 5
1.3 PERFORM FEASIBILITY STUDY................................................................................................................................ 5
1.4 STATE VISION, MISSION AND VALUE STATEMENTS.................................................................................................. 5
2 PROJECT OVERVIEW AND PLANNING.....................................................................................................................5
2.1 PROJECT BENEFITS................................................................................................................................................ 5
2.2 KEY STAKEHOLDERS.............................................................................................................................................. 5
2.3 PROJECT PLANNING............................................................................................................................................... 5
2.4 PROJECT JUSTIFICATION/MARKETING STUDY.......................................................................................................... 5
3 THE PROJECT FRAMEWORK......................................................................................................................................6

4 PROJECT REQUIREMENT DEFINITION...................................................................................................................6

5 ORGANIZATION STRUCTURE.....................................................................................................................................6

6 FINANCIAL PLAN.............................................................................................................................................................6
6.1 PROJECT COST...................................................................................................................................................... 6
6.2 ESTIMATES OF SALES, PRODUCTION, AND PROFITABILITY.......................................................................................6
6.3 SOURCES OF FINANCE............................................................................................................................................ 6
7 FINANCIAL ANALYSIS....................................................................................................................................................6

8 BENEFITS AND IMPACT ANALYSIS............................................................................................................................6

9 IMPLEMENTATION AND MONITORING PLAN.......................................................................................................7

10 PROCUREMENT PLAN...............................................................................................................................................7

11 QUALITY PLAN............................................................................................................................................................7

12 RISK MANAGEMENT PLAN......................................................................................................................................7

13 MARKETING PLAN.....................................................................................................................................................7

14 MANPOWER RECRUITMENT AND TRAINING PLAN........................................................................................7

15 COMMUNICATION PLAN...........................................................................................................................................7
Fanta Tesgera (PhD) Seminar Course Feasibility Study and Report Guideline Page 4
16 ACCEPTANCE PLAN....................................................................................................................................................7

17 Appendices.......................................................................................................................................................................7

Fanta Tesgera (PhD) Seminar Course Feasibility Study and Report Guideline Page 5
1 Project Description

1.1 Conduct Situation Analysis

(Describe the internal and external situations driving the need for your project. You need to include the SWOT analysis that
justifies the viability of your project including the risks/constraints that could adversely affect the success of the project and
list key assumptions under which the realization of the project would become possible).

1.2 Develop Business Case

(Based on the outcome of the situation analysis, give a detailed definition of the business problems or needs or opportunities
that   will   be   addressed   by   your   project.   Conduct   problem   tree   analysis   in   order   to   further   understand   the   problem   or
opportunity and then develop the hierarchy of your project objectives, benefits and then determine the possible solution
available. Use problem tree analysis to establish cause ­ effect relationship).

1.3 Perform Feasibility Study

(Conduct a specific feasibility study to investigate and determine the likelihood of each solution in achieving the benefits
outlined in the business case including the reasonableness of the forecasted cost, the attainability of the solution, and the
acceptability of the associated risks).  

1.4 State Vision, Mission and Value Statements

(Describe the rationale of the project including its vision, mission, values, goals, objectives, and its expected contribution to
the owner, the community and the nation)

2 Project Overview and Planning

2.1 Project Benefits

 (Describe the expected results and high level benefits of the project – financial and non­financial benefits. Describe the high
level  benefits including hard, measurable  benefits (i.e., increased sales) and soft, immeasurable benefits (i.e., increased
customer loyalty). 

2.2 Key Stakeholders

(List all of the key stakeholders – internal  and external and conduct stakeholder analysis and then develop stakeholder
participation matrix. Also include how your project benefits or impacts the various stakeholders)

2.3 Project Planning

(Describe here the specific stakeholders and the sector that your project will ultimately impact.  Describe the project scope,
and develop the project plan)

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2.4 Project Justification/Marketing Study

(Conduct market analysis (forecast both the demand and supply gaps) and describe the market segment or the target market
that your project will address. Then clearly indicate the market potential including your marketing strategy)

3 The Project Framework

(Here identify what needs to be done (the project activities) using WBS framework, and determine the project timing - the
project milestone schedule, resources and cost frameworks)

4 Project Requirement Definition

  (Identify types and quantities of resources needed including the labor required along with skill and knowledge sets, the
equipment and materials required to deliver your project goals and objectives. This has to include technical requirements
such as the location/site, layout/design and technology requirements of your project).

5 Organization Structure

(Define the project set­up including specific functional requirements along with roles, chain of command and reporting
relationship of each units or functions)

6 Financial Plan

(Determine  the  amount  of money  needed   with  your  project   including  investment  costs   (building  and  civil  works),  pre
operating costs, and running costs/working capital, and maintenance and support fees in order to determine the overall
project cost).

6.1 Project Cost

(Determine the composition of the initial investment outlay/cost including equipment and material costs, working capital
requirement, and pre­operating interest (if any)

6.2 Estimates of Sales, Production, and Profitability

(Make financial forecasts ­     estimates of capacity utilization rate, revenue, operating and administrative costs, projected
profit and loss statement, cash flow statement, including depreciation and amortization schedule).

6.3 Sources of Finance

(Describe sources of funding for your project ­ the financial requirement/structure by source of finance).

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7 Financial Analysis

(Describe what the return on investment would be for your project.  Depending on the criteria used within your project, your
financial analysis may use ROI, IRR, NPV, Payback period and including sensitivity analysis).

8 Benefits and Impact Analysis

(Present in detail the benefits and impacts of your project).

9 Implementation and Monitoring Plan

(Develop implementation action plan for your project including key activities, the milestones, deliverables/expected results,
and success measures or the key performance indicators (KPIs) that will be used to measure the success of your project. This
includes the way the project is organized and managed to deliver the desired result). 

10 Procurement Plan

(Identifying products/services to sources from external suppliers/vendors along the time dimension)

11 Quality Plan

(Provide quality targets, assurances and control measures)

12 Risk Management Plan

(Highlight potential risks and actions taken to mitigate them ­ plan for managing risks and changes within the project system
including what need to be monitored and controlled on an ongoing basis towards the successful delivery of your project).

13 Marketing Plan

(Describe in detail everything that will need to be done to market your project product and the training program that will be
needed to help beneficiaries on how to use the output of your project).

14 Manpower Recruitment and Training Plan

(Identify  staffing/manpower   requirements  for  the  respective  units  or  functions  and   plan  for  the  recruitment  as  well  as
training areas ­ including objective, target group, content, cost, duration, resource person, venue, etc)

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15 Communication Plan

(Describe the information needed to inform the stakeholders including the plan you use to reach out to the stakeholders
concerning your project).

16 Acceptance Plan

(List the criteria or the performance baseline to be met to gain customer acceptance for your project)

17 Appendices

(Place any information or diagrams that will not fit in the sections above and then reference them back to the section it
refers to. This includes projects on revenue, operating and administrative costs, projected profit and loss statement, cash
flow statement, including depreciation and amortization schedule).

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