What is the purpose of a 'Feasibility Study'?

The purpose of a 'Feasibility Study' is to assess whether a project is achievable by examining various dimensions such as technical, financial, and operational aspects. This comprehensive analysis helps stakeholders understand if the proposed project can be realistically executed within the constraints of available resources, technology, and market conditions.

By evaluating technical feasibility, the study investigates whether the current technology and resources can support the project's requirements. Financial feasibility explores the cost implications, budget considerations, and expected returns on investment. Operational feasibility looks at the organizational readiness and capacity to implement and sustain the project outcomes effectively.

Conducting a feasibility study is crucial early in the project lifecycle as it informs decision-makers about the viability of a project and provides a foundation for further planning and investments. This assessment helps in avoiding unnecessary expenditures on projects that are likely to fail or underperform, thus ensuring better allocation of resources and time.