GOV. ALFONSO D.

TAN COLLEGE
Institute of Business and Financial Services
Project Feasibility Study Outline
Adviser: Mr. Voltaire B. Torrion

Market Aspect:
1. Demand
1.1 What was the annual volume of the domestic demand for the past 5 years? Show table
of demand and the source?
1.2 Who are the major consumers of the product?
1.3 What is the projected annual volume of the domestic demand for the next 5 years?
Indicate method used and factors considered in preparing the projections.
1.4 Who are the current and potential buyers of the product?
2. Supply
2.1 What is the annual volume of the domestic supply for the past 5 years? Show tables.
2.2 Who are the major producers of the product?
2.3 What is the projected annual volume of the domestic supply for the next 5 years?
Indicate the methods used and the factors considered in preparing the projection.
Show tables.
2.4 Who are the current and potential produces of the product and where are they
located?
3. Competitive positions
3.1 What are the prevailing prices of the product?
3.2 What prices shall be adopted including tariff protection assumed or expected for the
project?
3.3 What is the quality of the product relative to the products of the current and potential
producers?
4. Marketing program
4.1 What are the present marketing practices of competitors?
4.2 What are the terms of sales?
4.3 What are the channels of distributions?
4.4 Where is the location of the sales outlets?
4.5 What are the promotional or advertising schemes to be adopted?
4.6 What are the expected marketing problems that may be encountered and how shall
they solve?
5. Creating a market share
5.1 How many are the competitors?
5.2 How will the firm compete in the market?
5.3 How much share will the firm be able to get?
5.4 What are the strategies of the firm to maintain and expand their market share?
6. Socio-economic/ contribution to the Philippine economy
 6.1 How many workers shall be employed in the project?
6.2 What is the approximate annual amount of taxes to be paid by the project and the
workers to the government?

Management Aspect:
1. Management of the project
1.1 How shall the project be managed during the operating period? Indicate firms or
persons to be involved in studying the different aspects of the project.
1.2 How the project shall be managed during the operating period. Indicate the type of
business organization: organizational chart and functions of each unit management
personnel specifying the duties and qualifications.
1.3 What skills and corresponding numbers of labor are required? Also, indicate the
recruitment and training program, compensation, fringe benefits, etc
2. Status and Timetable of the project
2.1 Specific timetable of the project, indicating the activities, and number of months in a
table.

Technical Aspect:
1. Product
1.1 What is the description of the product specifically relating to physical, mechanical
and chemical properties?
1.2 What are the economic uses of the product?
2. Manufacturing process
2.1 How shall the product be manufactured? Show detailed flow charts indicating
material and energy requirement at each step, and the normal duration of the process.
2.2 What are other processes and factors considered to determine the process to be
adopted?
2.3 What are the processes used in existing plants and similar projects in the Philippines
or abroad?
3. Plant size and production schedule
3.1 What are the daily annual production capacities of the plant?
3.2 How many days per year shall the project operate?
3.3 What are factors used in determining plant size?
3.4 What are expected attainable annual production volumes for the next 5 years
considering start-up and technical factors?
4. Machinery
4.1 What is the machinery layout? Indicate the number, specifications, rated capacities of
major machineries, and prices of equipments?
4.2 Where are the spare parts and repair service available?
4.3 What are the quotations from suppliers, machinery guarantees, delivery, terms of
payments and other arrangements?
 5. Plant location
5.1 Where is the plant located? Show a location map of the plant.
5.2 Is the location desirable in terms of distance to source of raw materials and markets
and other factors?
6. Plant layout and building structure
6.1 What is the plant layout? Show a layout chart?
6.2 What building will be constructed?
6.3 What are the costs of the constructions?
7. Raw materials
7.1 Description of raw materials specifically relating to their physical, mechanical and
chemical properties.
7.2 What is the material combination?
7.3 Are the raw materials available? Will there be a continuous supply?
7.4 Who are the current and prospective sources of raw materials?
7.5 What are the current and prospective costs of raw material and will there be any long-
term contract with the suppliers?
8. Utilities
8.1 What are the utilities required? Ex. Water, electricity, fuel, etc.
9. Waste disposable
9.1 What is the waste and its volume to be disposed off?
9.2 What is the waste disposal method to be adopted?
9.3 What are waste disposal methods in other plants?
9.4 What is the cost of waste disposal?
9.5 What is the clearance and cost if there is any, and how could it be secured from
proper authorities?

Financial Aspect:
1. Total Project Cost—all items considered and assumptions made.
1.1 How much is the project cost for 5 years?
1.2 What are the assumptions made?
2. Initial capital requirements
2.1 How much is the initial capital required?
2.2 What are the assumptions made?
3. Sources of Financing
3.1 What are the sources selected or proposed for both long-term and short-term
financing indicating the currency, security, repayment period, interest and other
features? Show a table.
3.2 What is the status of financing from each sources relating to actual release already
made, applications already approved, applications pending and applications to be
made?
 3.3 How would the contingencies and seasonal peaks in working capital be financed?
4. Financial Statements
4.1 What are the projected income statements for 5 years?
4.2 What are the projected cash flow statements for 5 years?
4.3 What are the projected balance sheets for 5 years?
5. Financial Analysis
5.1 What are the pertinent ratios for the next 5 years?
5.2 What are the break-even outputs, sales, and prices for 5 years?
5.3 What amounts of sales in pesos are required to earn a certain amount of profit for 5
years?
5.4 What is the cash payback period?