A feasibility report assesses the viability of proposed project plans or methods from a technical, commercial, and financial angle. The study helps narrow down the risk factors in the implementation of a project.
The feasibility report of a manufacturing plant entails the examination and assessment of a proposed project -- whether it’s viable to manufacture the product to meet customer needs. The report assesses but is not limited to the following (as applicable): staying within budget and finding appropriate resources, location, technology, facilities, tools, capacity, software, and staff with the skills required, including support functions, available or anticipated to be available as required to implement the project.
Purpose of a feasibility report
A feasibility report looks at a variety of factors to determine whether a new venture will be profitable and worthwhile now or in the future. A preliminary analysis is the first step in preparing a report. Interviews with stakeholders are conducted, market research is carried out, and a business strategy is formed. If everything looks good, real research is initiated. This involves the selection of a proper location, a listing of technological requirements, market analysis, a description of the marketing strategy, an outline of the required human capital, a project timetable, and funding. The report outlines estimated costs as well as projected advantages.
The following steps are involved in conducting a feasibility study
Performing preliminary assessments
Generating an estimated income statement
Carrying out a market research survey
Designing the new project's organizational structure
Preparing an opening day balance sheet
Studying and examining the project's internal points of vulnerability that can be remedied or eliminated
Determining whether to proceed with the plan/project
Source Url : https://www.resurgentindia.com/how-to-prepare-a-feasibility-report-of-manufacturing-plant
Comments