1What is the main purpose of a feasibility study?
To determine whether a project has a reasonable chance of success
2Are all projects feasible?
No, especially with tight budgetary and time constraints
3What are the four key types of feasibility?
Technical, Operational, Schedule, Economic
4What does technical feasibility assess?
If the organisation has the technology resources to develop, install, and operate the system
5What kind of questions are asked in technical feasibility?
Is the technology practical? Do we have the expertise? Is the schedule reasonable?
6What does operational feasibility assess?
If the system solves business problems or supports business objectives effectively
7What framework helps identify operational problems and urgency?
The PIECES framework
8In the PIECES framework, what does P stand for?
Performance
9In the PIECES framework, what does I stand for?
Information
10In the PIECES framework, what does E (first E) stand for?
Economy
11In the PIECES framework, what does C stand for?
Control
12In the PIECES framework, what does E (second E) stand for?
Efficiency
13In the PIECES framework, what does S stand for?
Services
14What does schedule feasibility assess?
If the timeframe and completion dates meet organisational deadlines
15What tool can be used to estimate project time?
Gantt Charts
16What does economic feasibility determine?
If the project can be done within budget and if benefits outweigh costs
17What are the two tests of economic feasibility?
Cost / Benefit analysis and adequate cash flow
18What is cost-benefit analysis?
Identifying financial benefits and costs to compare with project expenses
19What are tangible costs?
Costs with specific dollar values (e.g., salaries, hardware/software purchases)
20What are intangible costs?
Costs without easily calculated dollar values (e.g., dissatisfaction, morale)
21What are direct costs?
Costs linked directly to system development (e.g., project team salaries, hardware purchase)
22What are indirect costs?
Overhead expenses not tied to a specific system (e.g., network administrator salaries)
23What are fixed costs?
Costs that remain constant regardless of activity level (e.g., salaries, rentals)
24What are variable costs?
Costs that change with activity level (e.g., printer paper, supplies)
25What are developmental costs?
Costs incurred once during system development (e.g., staff salaries, training, hardware)
26What are operational costs?
Ongoing costs after implementation (e.g., maintenance, license fees)
27What are positive benefits?
Direct results of the new system such as increased revenue, better services, higher morale
28What are cost-avoidance benefits?
Expenses avoided by installing the new system (e.g., not hiring extra staff, avoiding replacement costs)
29What is the cost-benefit formula?
Benefits ÷ Costs
30Which project solution is preferred in cost-benefit analysis?
The one with the highest ratio of benefits to costs