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Saturday, 29 September 2018

Format for Reporting the finding of a Feasibility Study

A typical feasibility report usually the following format.

1. Executive Summary: This outlines contains the major findings of the study.

2. Background of the project : In this section, the history of the project is being discussed together with its scope and what brought about or lead to the project.

3. Market for the product or Service: This section shows the extent of the market, consumer segments, forecasted or current demand, pricing, marketing and distribution arrangements, structure and growth of the market or industry.

4. Materials and Inputs : Here the raw materials and other input required for the project and their sources are discussed.

5. Location and sites : This section states the best place to site the factory and rationale for this. It discusses the nature of the site required.

6. Technical Requirements: Under this section, the skill requirements, machines and equipment, buildings and civil works, plant and factory layout are being discussed.

7. Manpower Requirements : This section gives the type and calibre of personnel required for the project and their sources.

8. Financial Evaluation : This section discusses how the project will be financed and the future performance of the project. What is outlined or discussed here includes.

Estimate of total project cost.
 Project income statement.
Project cash flow statement.
Project balance sheet.
Breaks even analysis.
Return on investment.
Payback period.
Internal rate of return.
Discount cash flow.

9. Economic Evaluation:  This section gives the analysis of this section gives the analysis of good added value added, analysis of impact on foreign exchange position, analysis of employment effect, analysis of environment implications.

10. Implementation Scheduling : This section sets forth the step-by-step process and stages involved in implementing the full operation of the project.

11.Conclusion:  The final section state the major advantages of the project and its major drawbacks. It also states chances of implementing the project and sustaining it, and whether the project stands any chance of succeeding.