Types of Feasibility Study
The purpose of this report is based on a feasibility study on project management principle. Therefore, by selecting a particular project we aim at describing whether the project is viable or not for future implementation. This project is based on a business case that will try to improve the current situation or as well fill the literature gaps and opportunities in the field. A feasibility study is based on functional briefs and outcomes on a particular project. This study try to investigate a problem in the current situation which later pave way to another project that can be used to improve the problem or replace that problem completely. This study is conducted by feasibility study team that determine whether the project under consideration is viable or feasible.
Typically, there are four types of feasibility study that can be determined in completing a particular project. They include technical feasibility, social feasibility, legal feasibility and economic feasibility (Prasch, 2008). In this case, we intend to conduct an economic feasibility since the project under consideration will be based on a business case. For distinct and clear understanding, economic feasibility main objective is to determine whether or not to continue with the project. This is based or highly depend on whether it is economically viable or feasible. In order to do that, the systems benefits as well as estimated implementation cost need to be investigated before any further resources can be allocated or spent on the project. This is done by applying cost benefit analysis (CBA) to find out whether the new project is economically viable or feasible (Snyder, 2013). This implies that this is an economic feasibility report. The project that this report aim to recommend is a project on waste management and collection of garbage in the major cities in Australia.
This section describe all the resources needed in order to put this project into progress. For any project to start operating, there are the basic preliminary requirements that need to be put under consideration. This include time and cost limitations among other many requirements (Latham, 2010). If will put all other factors constant, this particular project is at a high demand and need to be treated as an urgent issue. This need to have the most appropriate timing of activities under considerations. The timing of this project need to start once all the resources are put in order. The process of garbage and waste collection with move sequentially per city.
There are four major cities that our organization aim to target for this business. The time of operations will be moving simultaneously in the first two cities which will be based in the morning hours. The other two cities will also be operated simultaneously in the evening hours. By operating that way, the organization will be able to achieve the daily objectives. Another issue about time for this project is the future operation time frame for this project. In the first 5 years, the organization aim at reducing the amount of garbage and base to a significant rate. For now, there is a lot that need to be done so as to reduce that waste at disposal in the cities.
Resource Requirements
The other information needed for this project is cost limitations. This refers to the resources that need to be committed so as to put the project into initial phase. These cost limitations include the labour cost, plant and machinery costs, overhead costs and sundry costs. All these cost limitations are involved in different processes of initiating the project so as to achieve the overall objectives of the project. The organization aim at spending some expenses to secure equipment for garbage collection.
These also involves the purchase of materials to be provided to the workers (Lee, 2016). The machinery needed in this project would include the Lorries that can carry a capacity of 2 tonnes of garbage for disposal. Then, the equipment required by the workers include the outfit that will protect the workers from any health hazards that can be associated to the garbage and waste collected from the cities. On the side of labour costs, the organization aim at employing many workers since the area of coverage is quite big. A lot of revenue need to be allocated for salaries and wages (Kanungo & Manuel, 2014).
Remunerations for the management team also need to be set aside during the initial phase of the project. These workers for the organization would include the garbage and waste collectors, the drivers for company Lorries, the experts for disposing non-biodegradable wastes, coordinators and the overall managing directors of the different cities together with other staffs. This implies that a lot of cash is required to pay the labour. We aim at raising this capital from shareholders contributions while any other remaining capital will be borrowed from financial institutions. Overhead costs involves the costs associated with administration of the company. On the other hand, sundry costs are cost involved in the maintenance of machinery such as fuel as well as maintenance of equipment as a result of wear and tear. Replacements and repairs also involves the costs under sundry.
Just like any other business oriented organization, our organization has a number of objectives to be achieved in the course of operations. From the mission, vision and strategic direction, these objectives can be expounded. The mission of Environment Rescue Company is to provide all the people living in Australia cities with clean environment full of clean water, clean air and admirable surroundings. This mission is based on the fact that, the number of resident in the major cities is increasing significantly day in day out.
This make our organization to work hard to save to face the society from negative future implications that may arise as a result of excess release and wrong disposal of wastes and garbage (Chopra, 2012). Then, the vision of our organization is to be a centre of quality environment through intensive use of strategies and mechanisms to dispose garbage and wastes that are released in major cities in Australia. This vision arise due to the demand for clean environment by majority of city dwellers. In addition, our organization has a positive strategic direction. From the mission, vision and strategic direction asserted for the organization, the following strategic objectives will be considered for this organization.
- To organization aim at reducing the volumes of garbage and waste in four major cities in Australia and later on offer the same services to other areas within Australia so as to upgrade then country toward economic and environmental empowerment.
- The organization also aim at forming partnership agreement with companies using wastes product for recycling by turning then to different product for human consumptions. This will make the project an income generating project that will be appreciated for good services offered.
- The organization aim at spreading these services of garbage collection all over Australia in the next five years of project initiation.
- The organization aim at disposing the waste products that are non-biodegradable by use of modern technology that is environmental friendly. This will maintain clean water and clean air for human consumption for the residents of the major cities in Australia.
- The organization also aim at engaging the government and other donors to raise fund to clean the environment via proper channels of garbage disposal. This will make the cities under consideration clean and attractive to travellers and urban tourists who will pay a lot of money in the cities. The cities will accumulate many tourists who requires services such as accommodation, recreation facilities, hotels and other kind of services and goods (Bragg, 2015). This will generate a lot of revenue to the government. However, this may not happen if the project will not be initiated since tourists need an attractive environment.
- The organization aim at reducing the garbage and waste into a zero rate after the first 5 years of project initiation.
- Lastly, the organization aim at creating many employment opportunities to the residents of the cities under consideration (McGregor, 2012). This will assist them in upgrading their living standards.
Objectives of the Organization
From the above strategic objectives, the company will be able to change the appearance of the cities and other areas in Australia.
The success factors involve the various aspect that make the project of garbage collection to be viable. These include.
- There is a high demand to reduce the volumes of wastes in major cities in Australia.
- The population is increasing tremendously thus increasing likelihood of more garbage and waste to be disposed wrongly.
- The government has not provided these services extensively to the affected residents.
This involves changes in organization structure. If the management and leadership of any organization is changed to effect the process of achieving the objectives, then great outcomes will be demonstrated. In that connection, the project become feasible due to the fact that the current adoptions of the project involves preliminaries.
In order to evaluate these options, the proposed budget for option 1 was $500,000 and for option 2 the proposed budget was $450,000. The underlying timeframe was 4 and 7 months for option 1 and option 2 respectively. Therefore, to clear implementation, we recommended these options in relation to the project of garbage and waste collection.
By considering the three options provided for assessment, the project recommended options 1 and 2. These two options involved lower initiation cost as compared to option 3.
Due to the high demand of clean environment by the city’s residents, our organization realize that the government fail to provide these services at the required rate due to increased number of occupants across all the major cities. This leave a wide gap that need to be filled as soon as possible and using all means possible. According to the present set up of collection of waste and garbage, the city councils offer their services three day a week (Wysocki, 2013). This fact make accumulation of wastes and garbage to increase at a high rate in the cities. From this problem, we realize a gap exist and need to be filled. So the organization aim at collecting garbage from residents places every morning in every week. On return, the residents will be required to pay as specific amount of money for that service. The charges for garbage collection will be determined by the stakeholders of the company.
The following issues and constraints will affect the project.
- Resistance to support the project by the residents may lender the project null and void.
- Late payment for the services offer will delay and limit the quality of services offered (Fletcher, 2012).
- Withdrawal of donors from this project will not assist the organization in offering the services to other areas.
Collection of waste products and garbage collection in the major cities in Australia can be a good project to undertake bearing in mind the many problems facing this cities in terms of pollution and other environmental implications. It is estimated that the garbage released in each city per day is about 2 tonnes (Myerson, 2012). This is dangerous to the environment and all the communities dwelling in these cities. The city council can only manage to collect 1 tonnes of these garbage while the remaining 1tonne is left to spread to different areas causing major problems to the community and the environment.
Therefore, a gap exist that need to be filled using all means possible so as to save our community and environment around them. The anticipated name to our organization is “Environment Rescue”. The project aim at generating income by charging the community for the services offered by our organization. This will help our organization to achieve the two main objectives. First, to generate income to the organization. The second objective is to keep the environment clean. This will be indicated clearly organization mission and vision.
In addition, our organization has a mission, vision, strategic direction and a corporate or a business plan. The mission of Environment Rescue Company is to provide all the people living in Australia cities with clean environment full of clean water, clean air and admirable surroundings. This mission is based on the fact that, the number of resident in the major cities is increasing significantly day in day out (Maslow, 2013). This make our organization to work hard to save to face the society from negative future implications that may arise as a result of excess release and wrong disposal of wastes and garbage.
Then, the vision of our organization is to be a centre of quality environment through intensive use of strategies and mechanisms to dispose garbage and wastes that are released in major cities in Australia. This vision arise due to the demand for clean environment by majority of city dwellers. In addition, our organization has a positive strategic direction. We aim at reducing the quantity of waste and garbage in these cities to a zero rate (Marylene, 2014). This objective will take the organization at most 5 years. With that done, then the strategic direction of this project will at the right track. In order to accomplish the vision, mission and strategic direction, the organization require to have a reliable business plan. This business plan will spell out all the resources that can be deployed to make this project realizable and viable.
This involve project drivers. Typically, project drivers refers to all the resources that need to be committed so as make the project viable. It also involves the organization structure for all the people needed to provide labour. Finally, it refers to the factors that make the organization to drive the project towards a given line of operation. To start with, the resources required for this project include the vehicles for transporting the garbage for disposal. The recommended model is a lorry with carrying capacity of 2tonnes. Then the equipment include the inputs that will be used during the process of garbage collection to protect the workers as well as to make their work easier
For this project, the KPI’S, the people required for this project include garbage collectors, the drivers for those motor vehicles, the finance team to collect revenue from the clients and management team to oversee the operation and the progress of the project. Finally, project drivers also include the force or the motive that drive the organization to execute this particular project (Arnold, 2010). The driving force this project is the fact that the government has not been able to fully managed garbage collection. This make this project very important to the residents.
This particular project under consideration is anticipated to reflect positive and desirable outcomes in the long run. To start with, the project will be able to clean the environment of the major cities in Australia by collecting garbage and disposing them in a manner that will not affect the community and the other aspects of the environment negatively (Kumar & Gopinath, 2016).
The project also aim at spreading the services to other areas within Australia if required resources are generated or are provided through donor’s findings and grants. We also anticipate that the government will as well join hands with our projects to as to have a collective responsibility to clean the environment. Again, after five years of operation in the four major cities, the project aim at spreading the services to different regions all over Australia so as to fill the gap that the government has not filled for quite a long period of time (Grummit, 2007).
This involves the management and employees. On top management, the managing director of the organization will oversee the overall objectives of the project while the other employees will be in the field to execute these objectives.
This will be based by the following assumptions.
We assume the following issues.
- We assume that the residents will respond to the project positively.
- We assume that the payment of the service offered will be paid to organization’s account by the end of the month.
- We assume that independent variables for this project will be enough for propel the project in the initial phases.
- We assume that the five years plan will flow as anticipated.
This involve the party that will win the tenders to supply the organization with all required resources for this project. This information will be posted in the public domain so as to initiate the procurement process.
The stakeholders in this project include the organization and the residents of the cities to be involved in the project. This strategy will involve communication about timeframe on garbage collection as well as how payments will be made by individual residents.
The organization anticipate that the quantity of garbage will reduce to manageable levels in the course of the first five years of the project initiation and execution of the project. The organization also anticipate that many donors will arise to support the project especially the non-governmental organizations dealing with environment so as to support the program (Muller, 2011).
The other information needed for this project is cost limitations. This refers to the resources that need to be committed so as to put the project into initial phase. These cost limitations include the labour cost, plant and machinery costs, overhead costs and sundry costs. All these cost limitations are involved in different processes of initiating the project so as to achieve the overall objectives of the project. The organization aim at spending some expenses to secure equipment for garbage collection. These also involves the purchase of materials to be provided to the workers (Lee, 2016). The machinery needed in this project would include the Lorries that can carry a capacity of 2 tonnes of garbage for disposal. Then, the equipment required by the workers include the outfit that will protect the workers from any health hazards that can be associated to the garbage and waste collected from the cities. On the side of labour costs, the organization aim at employing many workers since the area of coverage is quite big.
A lot of revenue need to be allocated for salaries and wages (Kanungo & Manuel, 2014). Remunerations for the management team also need to be set aside during the initial phase of the project. These workers for the organization would include the garbage and waste collectors, the drivers for company Lorries, the experts for disposing non-biodegradable wastes, coordinators and the overall managing directors of the different cities together with other staffs. This implies that a lot of cash is required to pay the labour.
We aim at raising this capital from shareholders contributions while any other remaining capital will be borrowed from financial institutions. Overhead costs involves the costs associated with administration of the company. On the other hand, sundry costs are cost involved in the maintenance of machinery such as fuel as well as maintenance of equipment as a result of wear and tear. Replacements and repairs also involves the costs under sundry.
The major risk associated to the project environment is the risk of environmental degradation. This project is capable of preventing degradation of environment from happening (Ballantyne, 2007). If it is not initiated, the community will blame the organization for not taking the necessary steps to stop it. Lastly, the risk of uncertainty. We may forecast the five years plan but the risk of uncertainty may affect the efficiency and effectiveness of the project in the process of achieving the strategic objective of Environment Rescue.
Quality management strategy will be achieved in this project by realizing the benefits below.
- There will be collection of large amount of revenue collected from the services offered to the residents of the targeted cities in Australia.
- The project will be able to keep the environment clean and safe from destructions associated to environmental degradations and pollutions.
- The residents of these cities will benefit from the project since they will be able to have clean homesteads with clean water, clean air and many other positive improvements in the environment.
This strategy involves the mechanisms to be used to ensure that the project meets the objectives at the final phase. This can only be achieved through proper planning of events and adequate budgeting.
This is a very unique project. Actually, it is a business oriented project which has targeted a unique idea or service with unique audience. Therefore, we can broadly say that our organization provide services that tend to benefit from monopoly factors as well as competitive advantage (Klosterboer, 2011). The following benefits are anticipated to come along with this project.
- The project will create many jobs opportunities for the residents and to many people that will help them to improve their present living standards.
- The project will reduces the effect of non-biodegradable wastes in the area by using modern technology that is tend to be environmental friendly when disposing them.
- Lastly, the project will be able to work together with other projects that deals with reuse and recycling of wastes product that can as well great another business opportunity as well as to improve the process of disposing the products by recycling them.
The above benefits will be achieved if and only if the process of initiated the project will be successful. These benefits are very promising and I tend to believe that this project is viable to operate so as to attain the strategic goals and objectives of the organization under consideration.
References
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