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• There are three general driving forces and these are: 1. To respond to an opportunity 2. To resolve a problem 3. To conform to a directive
• According to Pressman, all projects are feasible given unlimited resources and infinite time. Unfortunately, most of the projects must be developed within tight budgetary and time constraints.
• The objective of this activity is to determine whether a development project has a reasonable chance of success. Project feasibility
• Economic feasibility is the process of identifying the financial benefits and costs associated with a development project.
• Cost-benefit analysis is the analysis to compare costs and benefits to see whether investing in the development of a new system will be beneficial.
•  Net Present Value (NPV) The two concepts behind NPV are that all benefits and costs are calculated in terms of today’s present value and that benefits and costs are combined to give a net value. The objective of NPV is to determine a specific value based on a predetermined discount rate.
• Payback Period Also called the breakeven point, is the point in time at which the increased cash flow (benefits) exactly pays off the costs of development and operation.
• Return of Investment (ROI) This is a measure of the percentage gain from an investment such as a new system. The objective of the ROI is to calculate a percentage return (like an interest rate) so that the costs and the benefits are exactly equal over the specified time period.
• The Time Value of Money (TVM) is the concept that should be applied to each technique. This refers to the concept of comparing present cash outlays to future expected returns.
• The purpose of assessing technical feasibility is to gain understanding of the organization’s ability to construct the proposed system.
• Operational feasibility is the process of assessing the degree to which a proposed system solves business problems or takes advantage of business opportunities
• The purpose of assessing schedule feasibility is for systems analyst to gain understanding of the likelihood that all potential time frames and completion date schedules can be met and that meeting these dates will be sufficient for dealing with the needs of the organization.
• Resource Feasibility The project team must assess the availability of resources for the project.
• Feasibility analysis is the process by which feasibility is measured. It is designed to determine whether or not a project will be successful.
• Need analysis – This implies recognition of a need for the project. The need may affect the organization itself, another organization, the public, or the government. A preliminary study is then conducted to confirm and evaluate the need. A proposal of how the need may be satisfied is then made.
• Process work – This is the preliminary analysis done to determine what will be required to satisfy the need. The work may be done by a consultant who is an expert in the project field. The preliminary study often involves system models or prototypes. A simulation of the proposed system can be carried out to predict the outcome before the actual project starts.
• Engineering and design – These involve a detailed technical study of the proposed project. Written quotations are obtained from suppliers and subcontractors as needed. Technology capabilities are evaluated as needed. If necessary, product design should be done at this time
• Cost estimate – This involves estimating project cost to an acceptable level of accuracy. Both initial and operating costs are included in the cost estimation.
• Financial analysis – This involves an analysis of the cash flow profile of the project. This should consider rates of return, inflation, sources of capital, payback periods, breakeven point, and residual values. Moreover, this analysis determines whether or not and when funds will be available to the project.
• Project impacts – This provides an assessment on how much impact the proposed project has. Some of the factors that will determine how a project is perceived by the public include environmental, social, cultural, political, and economic impacts. Also, the value added potential of the project should be assessed.
• Conclusions and recommendations – The feasibility study should end with the overall outcome of the project analysis. This may indicate an endorsement or disapproval of the project. A recommendation on what should be done is included in the feasibility report.
• Project scheduling determines the order in which activities will be performed, setting start and end
• A work breakdown structure (WBS) is a hierarchy of phases, activities, and individual tasks that are required to complete the project.
• PERT is an acronym for Program Evaluation and Review Technique and CPM stands for Critical Path Method
• The critical path is the longest path through the PERT/CPM diagram and contains all the tasks that must be done in the defined sequential order.
• Gantt Charts Developed in 1917 by Henry Gantt, a Gantt chart is a bar chart that represents the tasks and activities of the project schedule. This chart is good for monitoring the progress of the project as it moves along.