A project is a set of activities related to the achievement of some planned objective, normally where the objective is unique or non-repetitive in nature. Thus, a project is usually distinguished from repetitive or continuous production processes by the characteristic of uniqueness, or tile "one shot" nature of the objective.
Here, this will not be out of the pint to mention that in project to achieve the objectives planning and control are the major tools to combat the overruns, but to conceive a project rather before the start of construction activity, there are various activities involved to implement the project.
The project development cycle comprises the pre-investment, the investment and the operational phases. Each of these three major phases is divisible into stages, many of which constitute important industrial activities. Several parallel activities take place within this phase and even overlap into succeeding investment phase. Thus, once the early stages of pre-investment studies have produced fairly dependable indications of a viable project, investment promotion and implementation planning are 'initiated leaving, however, the main
thrust to the final evaluation stage and investment phase.
Feasibility study is one of most important activity during the pre-investment phase. Complete and detailed feasibility studies covering all aspects of a project is a vital requirement for the success of the project. It should define and analyze the critical elements that relate to the production of a given product together with alternative approaches to such production. Such a study should provide a project of a defined production capacity at a selected location using a particular technology or technologies in relative to defined materials and inputs, at identified investment and production costs, and sales revenues yielding a defined return on investment. The feasibility study should describe the optimum process justify the assumptions made and the solution selected, and define the scope of the project as the integration of the selected partial alternatives. If; however, the project is not viable despite all alternatives reviewed, this should be stated and justified in the study.
A feasibility study may be either market-orientate based on material'inputs, i.e. it derives its initiative from an assumed or existing demand or from available material inputs such as raw materials or energy.
A feasibility study is not an end in itself, but, only a means to arrive at an investment decision that need not agree with the conclusions of the study. In fact, it would be rare to find invest response so flexible as to fully conform to the results of such a feasibility study.
Objectives
The major objective of this unit is to give a better understanding of the various tasks under the pre-investment phase of an industrial project. However. after studying this unit, you should be able to
- describe various statutory requirement,
- prepare various reports and documents normally furnished, and
- interact with various authorities for clearing the projects.
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