Feasibility Study SESW 108: Program Development and Management

1. Feasibility StudySESW 108: Program Development and Management Dr. KaziAbdurRouf Instructor Settlement Services Worker Certificate Social Service Worker Part-Time Diploma Program School of Social and Community Services Humber College Institute of Technology and Advanced Learning Building C, Lakeshore Campus, Toronto Tuesday, October 02, 2012 6:30 - 9:30 PM (5th class lesion)

2. Feasibility Study Scope and Feasibility Studies Project selection/definition Project life cycle of feasibility study Feasibility Study Features Stakeholder analysis Definitions of Client’s needs Evaluate constraints

3. Scope and Feasibility Studies Once some preliminary appraisals of the project concept have been made, the next step is to undertake a feasibility study. The aim is to show the conditions in which the project could achieve its objectives, and able to get funding, raise funding. If initial study gave positive indication to potential project initiation, subsequent studies are undertaken to: •Review and update resource and market studies •Investigate the proposed location and potential alternatives •Review the available technology •Provide an outline design and cost study •Indicate infrastructural requirements •Prepare draft project implementation plans •Provide financial and economic analysis •Incorporate design, negotiating and operational philosophies.

4. Project selection/definition It is a crucial stage for decisions making what type of services in which area the project will operate. Hence define the project very specifically with the following notions • Technology selection • Services specification of the project facilities • The project implementation plan • Financial and contacting plan • These information studies provide the foundations for drawing up the programme for acquiring the project plan.

5. Commission Project life cycle of feasibility study concept Design Implementation Level of effect Descr iption Commission: confirm the feasibility study has proceed the required report Concept Out line of the study Design: How to carry-out the feasibility study Implementation: perform the feasibility study

6. Feasibility Study • Feasibility study not only ensures the project is feasible, but also ensures it is making the best use of agency’s resources. • Feasibility study initiation: The feasibility study is formalizing the project with the project charter. •Project charter outlines the purpose of the project and what it is meant to achieve. The feasibility study should be formalised with requirements, boundaries and expected outcomes:

7. Feasibility Study Features Who is responsible Project brief and proposal to be analyzed Who should be involved Level of detail Report back date Budget for the feasibility study Senior management have made the decision to proceed with the feasibility study, the decision to proceed with the implementation of the project will be made latter-based on feasibility stud’s recommendations. Appoint the feasibility study team: senior management responsibility to select project manager or team leader for the feasibility study considering the following points: Technical expertise Basic team selection criteria (project teams characters) Involve the stakeholders Give sufficient time to project manager and the team members to develop the project services products.

8. Plan the feasibility study • The feasibility study should e managed as a mini project using the planning and control techniques. It will have its own project life cycle. Concept: outline the purpose of the feasibility study Design: plan how you intend to carry out the feasibility study Implement: perform the feasibility study Commission confirm the feasibility study has produced the required report.

9. Stakeholder analysis The purpose of the need analysis is to determine the needs and expectations of all the stakeholders. Project stakeholders are organizations/ peoples (both internal/external) who are either actively involved in the project, or whose interests are effected by the stakeholders and determine their needs and expectations. These needs and expectations should be managed, influenced and balanced, to ensure project success. The PM creates an environment where the stakeholders are encouraged to contribute their skills and knowledge which may be useful to the successful of the project.

10. Consider the following points in stakeholders’ analysis Originator: the person who suggested the project Client: who are the beneficiaries Sponsor: Project Champion: the person who makes the project happens. Often a person with influence in high places Users: the people who will operate the facility on behalf of the agency when the project is completed Customers: the people who receive and pay for the benefit from the facility Project Tram: the team members who plan, organize, implement and control the work of the contractor to deliver the facility within the constraints of time, cost and quality Senior management; within the agency who need to support the project (mentor support)

11. Consider the following points in stakeholders’ analysis -continue Functional managers: who will be supplying the workforce for the project Boss Colleagues: although they may not be working directly in the project, they can indirectly supply useful information and offer moral support Supporters: the parties who provide goods and services to enable the facility to build, for example the suppliers of telephone, electricity, financial support etc. Legal requirement: rules and regulations both nationally and internationally that must be complied with: Regulatory authorities: health and safety Special interest groups Lobbying groups Government agencies and media outlet Individual citizens Board of Directors

12. Definitions of Client’s needs The starting point for a project is usually to address a problem or a need, which may be internal or external to the agency. The sponsor may start a project to implement a change, make a product, enter a new area or solve a problem The product must carry out a certain function at a predefined rate The product must operate in a specific environment The product must have a working life of so many years The project’s budget must not exceed $X The project must meet certain specifications and standards The product must achieve reliability requirements The product must meet statuary health and safety regulations The ergonomics must be consistent with the latest accepted practice

13. Definitions of Client’s needs -continue Ease to maintain into design The operational requirements must achieve predetermined manpower levels and automation The services should have predefined values of local content The product must provide opportunities for future expansion The product must be operated by a predefined date All services musty be provided with an approved quality management system All services must have good track records. The agency should be flexible to accommodate any reasonable changes made by the sponsor The deliverable product must fulfil client’s needs/demands. All the above items may be mutually exclusive, which means there will have to be a trade-off.

14. Project Viability Check Consider the effect location has on the project. Large infrastructure projects often have to widen roads for their access to the office and to the community Consider how the environment will affect the services Consider how the services will affect the environment Calculate the optimum size of the end product Define the target market. Who will receive the services? Assess the demand and need of the services, forecast the demand of the services Assess the competition from other players in the market.

15. Evaluate constraints Project constraints can be considered as internal or external restrictions which may effect the achievable scope of the project. These anticipated limitations can be quantified under sub-headings: Internal project constraints: Directly relate to the scope of the project- can the services be made, does the agency have the technology, can the resources be trained up to the required level of ability The multi-resource analysis Are there any special design requirements? Will any new management systems introduced be compatible with existing systems they interface with? Is the project office setup? Can the project meet the client’s need within his/her required time Are the projects risks and uncertainties acceptable? Can the agency accept the terms and conditions outlined in the contract documents?

16. Internal corporate constraints The agency itself can impose some quasi constraints on the project. Agency has its own long term goals. The progress of the project may be encouraged or delayed to meet the company’s annual budget Marketing strategies Estimating Partners: The company may wish to take on a partner who has previous experience in the field of the project and also to spread the risk Community relations Training Those may increase project costs

17. External constraints External constraints are imposed by parties outside the agency, but of these constraints may not be negotiable National laws and regulations Deliverables overlapping within the project area (community) Limited numbers of findings Logistics constraints, availability of transportations Currency fluctuations Environmental issues, Government regulations and pressure group activities Climate conditions, rain, heat and humidity Political unrest

18. Table of Constraints

19. Valuate Alternatives and Options The alternative analysis is the process of breaking down a complex product into its component parts before identifying different and effective methods of achieving the desired result’ The process should start with a check list to structure the thought process. This can be achieved through the work breakdown structure. The following check list outlines a number of the basic questions to be asked: Time: can the project be completed quicker? Cost: Can the budget be reduced? Quality: Can the project be made to a lower level of quality which would be acceptable to the clients, Resources: Can the work be cost effectively automated to reduce the manpower requirement?

20. Valuate Alternatives and Options-continue Technical: Can cheaper materials be used? Is there a simpler design configuration? Has the latest technology been considered? Has the trade-off between cost, delivery, schedule and technical performance been quantified? Have alternative management systems been considered?

21. Table of Alternatives and Options Source: Rory Burke (1999). Project Management: Planning and control techniques. Chapter 22. Toronto: Willey.