Prefeasibility Study Format
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ScribdTranslationsPrefeasibility Study Format
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ScribdTranslationsFEASIBILITY STUDY OF……………
INTRODUCTION
CHAPTER I. MARKET STUDY
1.1. OBJECTIVE OF THE MARKET STUDY
1.2. THE PRODUCT IN THE MARKET.
• Main product and by-products.
• Characteristics, composition, properties, shelf life, requirements of
quality.
• Uses.
• Substitute and/or similar products.
1.3. PROJECT INFLUENCE AREA.
• Factors that determine the market area.
• Selected market area.
• Factors that limit marketing.
1.4. DEMAND ANALYSIS.
• Current demand situation.
• Historical Demand (Theoretical Characteristics, Growth Coefficients)
historical).
• Future situation.
• Demand projection method.
• Demand projection.
1.5. ANALYSIS OF THE OFFER.
• Assessment and current characteristics of the offer.
• Historical growth offer.
• Current offer, suppliers, capacity, production.
• Development policies and conditions of future supply.
• Supply projection method.
• Projection of the supply.
1.6. UNSATISFIED DEMAND (BALANCE-OFFER-DEMAND)
• Determination of unmet demand
• Results.
1.7. PROJECT DEMAND
• Analysis of the Project Demand
• Annual availability of raw materials.
• Projection of availability.
• Conclusions on the availability of MP
• Project Demand
1.8. PRICES
• Product price in the market.
• Price of substitute and/or similar products.
• Historical evolution.
• Price projection method.
• Price projection.
• Pricing policies.
1.9. SALES PLAN
1.10. MARKETING OF THE PRODUCT
• Reputation of their products.
• Factors limiting marketing.
• Proposed distribution system.
1.11. CONCLUSIONS OF THE MARKET STUDY
CHAPTER II. RAW MATERIALS AND SUPPLIES
2.1. REQUIREMENT OF MATERIALS AND SUPPLIES
• Production Plan
• Materials Requirements
• Availability of critical supplies and possible strategies
(marketing of supplies)
CHAPTER III. LOCATION AND SIZE
3.1. BASIC FACTORS THAT DETERMINE LOCATION
• Geographic dispersion of claimants
• Disponibilidad y costo de: Insumos auxiliares. Mano de obra. Asistencia
• technique. Electric energy. Water. Fuels.
• Study of raw material availability: Quality and characteristics of
the raw materials. Producing areas and production volumes and
imports. Prices. Historical series of production and projection of the
total availability.
• Transportation costs of: Raw materials and auxiliary supplies. Product
• finished and byproduct.
• Geographical Factors: ecological phenomena. Topographic conditions.
Others.
• Ecological and environmental impact. Infrastructural and environmental conditions
• environment.
3.1.2. Analysis of Macro Localization
• Aspectos geográficos: Límites políticos. Coordenadas y altitud sobre el nivel
of the sea
natural.
• Socioeconomic and cultural aspects: Total population. Centers of
most important population. Economically active population.
• Salaries and wages. Education. Public health. Structure of the current power.
• Communication routes. Electrification. Irrigation works.
Potable water network. Storage centers. Telecommunications and
mail. Education and recreation.
3.1.3. Micro Localization Analysis
• Geographical aspects: Political boundaries. Coordinates and altitude above sea level.
of the sea
natural.
• Socioeconomic and cultural aspects: Total population. Centers of
most important population. Economically active population. Branches of
activity.
• Salaries and wages. Education. Public health. Structure of the current power.
• Infrastructure: Communication routes. Electrification. Irrigation works.
• Potable water network. Storage centers. Telecommunications and
Post. Education and recreation.
• Institutional aspects: Property regime. Credit institutions.
• Analysis, evaluation, and determination of Microlocalization (Method of
evaluation
3.2. JUSTIFICATION OF THE LOCATION AND SITUATION OF
THE PLANT
• Indicate and briefly justify the final decision to establish the
plant in the area that is proposed. Everything based on a critical analysis of the
different factors mentioned earlier.
• Location plans.
CHAPTER IV. ENGINEERING AND TECHNOLOGY
4.1. PRELIMINARY STUDIES
• Background of the process
4.2. PRODUCTION PROCESS
• Description of the Production Process
• Process and flow diagrams.
• Balance of materials and energy
• Production plan and capacity of the plant
• Material Requirements
• Availability of critical supplies
• Plant Capacity
• Production indicators.
4.3. TECHNOLOGY
• Requirements, selection of machinery and/or equipment, availability and
cost evaluation.
• Energy requirements
• Labor requirement
Describe and justify the selected technology, reviewing its
availability and its possible significant advantages or disadvantages, as well as
its duration cycle.
4.5. PLANT DISTRIBUTION
• Specify the type of plant layout.
• Describe the plant layout distribution plan. Areas. Guerchet method.
• Describe the main civil engineering works required (Land area,
industrial infrastructure area, construction area. Plans.
4.6. QUALITY CONTROL
(according to the product)
CHAPTER V. ORGANIZATION
5.1. HUMAN RESOURCES
• Type of organization and organizational structure
• Description of areas, functions, and positions
• Job Profile
• Requirement for direct and indirect labor
(Indicate the key people (necessary qualifications) and total employment
(number). Consider the social benefits.
5.2. GENERAL ADMINISTRATION
• Company policies (Inventory policies, purchasing policies, payment policies, of
sales, marketing, etc.)
CHAPTER VI. INVESTMENTS
6.1. Fixed investment (Tangible)
• Land, Buildings and constructions, Installations, Machinery and equipment,
furniture and office equipment, transportation, others.
6.2. Deferred investment (Intangible)
• Various contracts, permits, freight of machinery and equipment, training of
personal, preparation or start-up expenses, insurance, patents,
prepaid expenses, advertising before operation, studies and
projects, others.
6.3. Working capital
(Production and operation costs necessary for the functioning of the
company in a determined time
6.4. Unexpected events
(Percentage of total investment)
6.5. Total Investment Summary
The participation of the own capital will be indicated as the amount to be
financed
6.4. INVESTMENT SCHEDULE
6.5. FINANCING
• Sources of resources
• Loan Financing Strategy
• Interest and amortization payment program to be paid for the loan
acquired
CHAPTER VII. ECONOMIC AND FINANCIAL EVALUATION
7.1. REVENUE BUDGET
7.2. COST ESTIMATE
Production Costs
Administrative expenses
Marketing Expenses
Financial Expenses
Total Costs
7.3. ECONOMIC BREAK-EVEN POINT
7.4. PRO FORMA FINANCIAL STATEMENTS
Income statement or profit and loss statement
Annual cash flow
7.5. FINANCIAL ECONOMIC EVALUATION
Economic and social profitability rate
Net present value
Benefit/cost ratio and jobs created
Sensitivity analysis (Regarding the selling price, the raw material)
CHAPTER VIII. ENVIRONMENTAL SUSTAINABILITY STUDY
From the design stage of the project, integrated management must be included.
resources from the perspective of sustainable development.
An analysis of those variables that could potentially be conducted.
cause negative effects on the environment during the execution of the project.
The impact on the environment could be positive when the effects of the project improve.
the environment, or negative when they cause deterioration. In the second case
the mitigation measures that will be used to reduce or must be indicated
minimize its effects
CHAPTER IX. CONCLUSIONS AND RECOMMENDATIONS
9.1. CONCLUSIONS
Summarize the discussion-results; it is the author's contribution, they answer the
objectives.
9.2. RECOMMENDATIONS
CHAPTER X. BIBLIOGRAPHICAL REFERENCES
Present the reference list that contains information in sufficient detail,
only from those bibliographic sources cited in the text. Write according to
international standards.
ANNEXES