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Home About Private Policy Archive for the Feasibility Study Category.

Previous Entries Feasibility Study of a Commercial Warehouse in Angeles City January 10, 2011, 4:35 am General Aspects 1.1 Description of the Project The warehouse project is described and the findings on the market, technical and financial aspects of the study are summarized. 1.2 Project Timetable A brief statement on when the warehouse will become operational together with a timetable of pre-operating activities is indicated 1.3 Management of the Warehouse The organization and staffing of the warehouse company are defined and quantifie d. Procedures for inventory account-ability, receiving and shipping of goods ar e established. Product and Market Aspects 2.1 Product The products to be warehoused and marketed are identified together with correspo nding producers. Brands of producers with warehousing facilities in the area ar e excluded. 2.2 Trade Area The producers are interviewed to attain data on the volume of production and dis tribution of each product to the region. 2.3 Competition Competitors, data on products warehoused and marketed sales volume, and pricing are identified. 2.4 Projected Sales The total demand and market share for each product over a ten-year period are pr ojected on the basis of the following: 2.4.1 2.4.2 2.4.3 Population growth Consumption per capita as affected by income growth Competition

2.5 Marketing and Selling Prices The marketing arrangement and selling price for each product are defined over a ten-year period. 2.5.1 2.5.2 2.5.3 storage 2.5.4 Immediate purchase of goods upon delivery from producers Immediate sale of goods on commission basis Storage and sale of goods upon orders from producers, fixed charges for and commission on sales. Combination of the preceding marketing methods

Technical Aspects 3.1 Location Factors

After the geographic location of the warehouse has been selected, the specific s ite must be determined. Some of the factors that may influence the choice are a s follows: 3.1.1 Topography The site must be free from floods. 3.1.2 Accessibility The site must be as near as possible to transportation lines. 3.1.3 Cost of Land 3.1.4 Land Use The site should be compatible with warehousing regulations. Proximity to reside ntial areas should be avoided. 3.1.5 Security The site should not be in areas known for the incidence of theft and vandalism 3.1.6 Building Code The requirements of the building code must be considered, particularly with rega rd to the restriction on the height of the building. 3.1.7 Advertising The exposure of the building to heavily traveled high ways adds on advertising v alue to the state or site. 3.2 Size and Layout of the Building The specific considerations on the size and layout of the warehouse are as follo ws: 3.2.1 The size of the building is related to the projected sales over a ten-year period in general and to the occupancy rate in particular. 3.2.2 The width-length on figuration of the building affects the construction co st per square meter of floor area as well as the handling and storage operations In principle, for optimum combination of construction cost and operating effic iency, a warehouse should be nearly a square 3.2.3 Height will be limited by local building restrictions and the need for saf e and practical handling equipment. Height is also a convenient and relatively economical means of providing storage capacity. 3.2.4 Location of rail and dock should consider factors such as protection from the weather, security aspects, proximity to storage areas and loss of storage sp ace. Docks may be located outside, inside or partially inside/outside the wareh ouse. 3.3 Equipment The types and number of equipment for handling storing and shipping operations a re determined. Financial Aspects 4.1 Project Cost 4.1.1 property, plant and equipment 4.1.2 organizational and operating expenses 4.1.3 working capital 4.2 Sources of Financing

4.2.1 capital stock 4.2.2 long term borrowing 4.2.3 short term borrowing 4.3 Financial Projections and Notes and Assumptions 4.3.1 cost of sales 4.3.2 operating expenses 4.3.3 income 4.3.4 cash flow 4.3.5 balance sheets 4.3.6 capital expenditures (organizational and pre-operating expenses, building, machinery and equipment, office furniture) 4.4 Financial Analysis 4.4.1 discounted cash flow rate of return on total investment 4.4.2 financial ratios (return on sales gross profit rate, return on assets, etc .) 4.2.3 break-even analysis Tags: feasibility study of commercial warehouse Category: Feasibility Study Comments Off Technical Aspect Feasibility Study for Snack Stand June 13, 2010, 11:35 pm The technical aspect helps to determine the capacity of the project. The techni cal study will provide information in service activity and the raw materials to be used in providing activity this product as well as their resources. It is al so determine the utilities and equipment to be acquired in showing the location and layout of the project. Objectives 1. 2. 3. To know the business should be located. To find how to improve more in the business and also in the product. To know how to use properly the equipment and machinery.

Plant Lay out The plant lay out show the size of a firm. Lay out shows the different angel of the firm and the lay out is the guide for the worker who made a difficult firm. Plant Location The business will be situated at Common Terminal at Barangay Ibayo, Balanga City , Bataan beside the Isaac and Catalina medical center. The common terminal is a very busy place where a great number of people come to go The GF Snack Stand i s situated on the second floor of the terminal. The business was agreed to be situated at the said location because of its suita bility for the targeted market. Researchers suggested that the kind of business is very much profitable in the said place. The partnership believes that the b usiness can serve more customers in the area compared to other places. The said location is very much accessible to students, employees, office workers, busine ssmen and common terminal passengers and also for those who are roaming around t he three (3) malls. Excerpt from Management Project by Arde R. Reyes Tags: snack stand feasibility, technical study Category: Feasibility Study Comments Off System Feasibility Study April 16, 2010, 8:54 am

In the field of computer and technology, there always an option to automate thin gs likes payroll system, inventory system, lighting system, and sales system. B ut of course, before the automation of any system, a feasibility study should be conducted in order to see the benefits of automation over manual system as well as other alternatives. At first, you should study the organizational systems such as the users, policie s, functions and objectives. Consider also the problems existing over the presen t systems like redundancies, inconsistencies and slow services. Also, know the c onstraints such as the nonfunctional requirement. After analyzing the present or current system, possible alternatives should be p resented. Sticking to the current or present system is always an alternative. D ifferent types of automation or computerization and business processes are consi dered to solve the existing problems. Advantages and disadvantages of each alter native should be discussed. In addition, the computation of payback analysis, net present value analysis, an d return on investment analysis should be included in your feasibility study. If there is a feasibility study, the best alternative is to be preferred by the management because there a chance of comparing alternative. Feasibility study wi ll determine the best solution to the problems. After all, feasibility study is written to assess each alternative and come out of the best alternative that wi ll benefit the intended users. Tags: Feasibility Study, system feasibility study Category: Feasibility Study Comments Off What to Include in your Feasibility Study March 30, 2010, 3:32 am In starting a new business venture, it is important to conduct a feasibility stu dy to ensure that your business will be successful. Some things to be included are plan, cost, and sources of funding, manpower and personnel requirements, mar ket and profitability. In the plan section of your feasibility study, State clearly the objectives and description of the project. Duration to complete the project is also included. I t is usually answers the questions what, why and how about the project. Indicate the cost of equipment and facilities needed for the project. The propo nents should undertake reliable canvassing using at least two or three supplier and be particulars to models and capacities of equipment as well as the availabi lity of materials. Also, it is important if there is budget for the project. If there is no suffic ient budget for the project, a bank loan may be considered. In this case, the l oan amount and its interest must be factored into the financial documents of the study. Realistic income targets from the venture should be projected. As per personnel or manpower, it is important to determine the size and particul ars of manpower as well as personnel s job description, job titles and credential standards. Also, salary rates and allowance should be noted. In addition, the stability of the market determines the viability of the project . A survey should be conducted to know if there are sufficient clients or custo mers and to whom the commercial venture will cater. Of course, project should know if it is profitable. A ten or twenty percent retu rn of investment (ROI) is usually regarded as profitable enough.

Tags: Feasibility Study Category: Feasibility Study Comments Off Vital Parts of Feasibility Study December 19, 2009, 5:59 am A. Summary of Project

Name of Firm Location head office and plant site Brief description of the product Highlights of major assumptions such as market projections, share and prices , investment costs, method of funding Summary of findings and conclusions on the following a. b. c. Market feasibility Technical feasibility Financial feasibility

B. General Information Describe the pre-operating period, during the operatin g period, labor, and professional firms or consultants to be hired, if any. Also , includes status of timetable of the project and other information such as pend ing litigations, information regarding intangibles, etc. C. Competitive position considering imported and/or substitute products.

D. Marketing Program description of the present marketing practices of compet itors in the exports and domestic market. Projected export and proposed marketin g program of the project. It includes the contribution to the economy, plant la yout, structure, raw materials, utilities, and waste disposal. E. Financial Feasibility Total project cost, initial capital requirements, so urces of financing, financial statements, and financial analysis. F. Social Desirability specific project contributions to the economy and soci ety and social rate return. Tags: feasibility study parts, feasibility study sample Category: Feasibility Study Comments Off Some Feasibility Study Mistakes March 25, 2009, 1:53 pm It is imperative to show your idea is feasible to attract investor and fund the project. No matter what is your offering whether a product or service, you need to convince other people to finance your ideas. I provide some feasibility mistakes which serve as guidelines to your feasibilit y study. Doing feasibility study without doing research. It is a wasting of time and money without preliminary research on validity of the idea. It is necessary to conduct initial research or pre-feasibility study before the start on of a full feasibility study. Incorrect data interpretation. Sometimes, the writer overestimates the mark et size as well as the opportunity for the new venture. For example, you will ob serve that the product has a large market place, but not realized the strengths of competitors and their customer s loyalty. Incorrect cost estimation. Make sure to detailed the cost to avoid over-esti mation or under estimation. Also, cost estimates should be studied carefully.

Overlook indirect competitors. Make sure to investigate all products and se rvices that deal to customers need. Surveys dependence. Don t over rely to survey because people tend to answer for new product but when it comes to purchasing, they say no . Without expert Assistance. It is important to get expert views regarding th e product, idea or services. Tags: feasibility study mistakes Category: Feasibility Study Comments Off What to include in your Technical Feasibility February 12, 2009, 1:02 am Product Description of product Economic uses of the product Manufacturing Process Detailed Flow Chart of the Manufacturing Process including the material and energy requirement at each step and normal duration of the process Other processes and factors considered to determine the process to be adopte d Processes used in existing plants and in similar projects Plant Size and Production Schedule Daily and annual production capacity of the plant Days per year the project operate Factors used in determining plant size Expected attainable annual production volume for the next five years conside ring start-up and technical factors. Machinery Machinery layout such as the number of specifications, rated capacities of m ajor machineries, prices of equipment, and balancing of capacities of each major and auxiliary equipment and standby units Spare parts and repair service available Quotations from suppliers, machinery guarantees, delivery, terms of payments and other arrangements Plant Location and Layout Location map of the plant Plant Layout Tags: technical feasibility Category: Feasibility Study Comments Off Suggested Outline for Feasibility Study February 5, 2009, 1:51 am One of the important steps in business development is a feasibility study. Feas ibility study is used to determine the potential for success of a proposed busin ess venture. The sample outline below can be used to help you make your study. However, not a ll feasibility studies are alike because it depends to the type of business vent yes

ure analyzed and the market. The success of a feasibility study is based on the careful identification and evaluation of all of the important aspects for busine ss success. Description of the Project. Identify the list of product(s) or services(s) to be marketed and the general business model such as how the business will make mone y. Include the technical processes, size, location and kind of inputs. Also know the economic and social impact on local communities as well as environmental im pact on the surrounding area. Market Feasibility. Determine the industry description, industry competitiveness , market potential, sale projection and the access to market outlets. Technical Feasibility. Find out the facility needs, suitability of production te chnology, availability and suitability of site, raw materials and others such as labor availability and qualified management personnel. Financial Feasibility. Include the estimation of total capital requirements, equ ity and credit needs, budget expected costs and returns of various alternatives Management Feasibility. Identify the business structure and business founders. Conclusion. Include information that will be used for decision making whether to proceed the proposed business ventures.

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