What is a Feasibility study?
The objective of such a study is to ensure a project is legally and technically feasible and economically justifiable. It tells us whether a project is worth the investment.
When it comes to a feasibility study, the following represent failure:
Costs are higher than estimated
Revenue generated indicates the product will not be profitable
Project tasks are operating past schedule
Product does not meet quality standards
It takes a lot of effort and finances to sustain performance
Peter McCarthy, in his study of why feasibility studies fail, cites the following observation of a feasibility study conducted in metallurgy: 27% of the problems in feasibility studies were in the test work, project scale-up and equipment design. The wrong composites were tested, process contaminants were not identified, mining schedules were not followed and teams did not understand the composition of the orebody.
Other reasons for failure include:
The natural desire by human beings to see things to completion even when they don’t make sense,
Lack of stakeholder involvement,
Resistance to change by management and end users,
Communication breakdown between and among teams. This can often lead to plans being off schedule, or some operational parameters being misunderstood.