FEASIBILITY STUDY (CHAPTER 4 )

CHAPTER  4

FEASIBILITY STUDY

Feasibility study is to check the viability of the project under consideration. Theoretically various types of feasibilities are to be conducted, but we propose to conduct following three type of feasibilities as under.

Ø  ECONOMIC FEASIBILITY

•      First, under manual system, the total expenditure on operation of the system has been worked out (say Rs 50 Lakhs p.a.).

•      This expenditure contains salary of the employees, stationary, building, rent, electricity, water and telephone charges etc.

•      But with new system, the above re-occurring  expenditure is likely to be reduced considerably. This expenditure has been examined. This work will be done with less number of employees and reduced requirement of office space and in turn the other expenditure (say Rs 30 Lakhs p.a.).

•      Hence the new system is economically feasible.

Ø  TECHNICAL FEASIBILITY

•      The new system requires  reduced number of persons to work with the system. So we have identified a minimum number of best people from existing system and trained them.

•      As our existing system is purely manual, so we need a one time investment (say  Rs 7 Lakhs ) for the purchase of  a few computers, Ticket printers, a laser printer, AC and networking etc. Further, it requires additional expenditure per annum as a operating cost(say Rs 20 Lakhs per month).

•      With the above details our system is technically feasible as after investing Rs 27 Lacks in a year, the company is still saving Rs 23 Lacks p.a.

Ø  OPERATIONAL FEASIBILITY

•      The new solution is feasible in all sense but operationally it is not.

•      The new system demands the expulsion of a considerable number of persons from the company. It creates an environment of joblessness and fear among the employees.

•      It can lead to an indefinite strike in the company also.

•      So the management must take corrective actions in advance, in order to start the further proceedings.