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Feasibility studies - Coggle Diagram
Feasibility studies
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Financial viability
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contingency money
an amount of money that is included to cover potential events that are not specifically accounted for in a cost estimate. The purpose is to compensate for the uncertainty inherent in cost and time estimates, as well as unpredictable risk exposure.
Spreadsheets are used to compare potential costs to the proposed retail price and predicted sales to estimate profits and the return on investment, as well as to calculate the cost of production (split into direct, indirect costs), to see if tis feasible
direct costs
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e.g. labour costs, materials required, costs of tooling & dies,
indirect costs
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rent, salaries of administrative staff, energy bills, office supplies, depreciation & building insurance
more sophisticated computer modelling is available to calculate specific cost of production, e.g. injection moulding
software is available to calc the cost of moulds including cores for hollow products, the material & cycle time for the machine. this would be set against the num of units to be made given the cost of production
testing feasibility
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Virtual testing
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thermodynamics, airflow & computational fluid dynamics (CFD) can be tested to assess product limitations
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testing the market
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can indicate how popular a product might be, price people are willing to pay & highlight best & worst design feature
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Production & logistics
a feasibility study should analyse how the design, manufacture & distribution of the product should be managed
includes identifying appropriate location, processes & scale of production
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why do one?
it assess if a proposed product, system or process has any potential
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could include market surveys & research, etc
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