Topic 6 Project Viability.pptx - TOPIC 6: PROJECT VIABILITY...

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04/08/2022Prof. Emanuel A. Mjema1TOPIC 6:PROJECT VIABILITYASSESSMENT
Project Viability AssessmentViability simply meansability tosurviveor the study of theexisting or proposed business’sprofitabilityViability into the future is known assustainabilitySo Viability on the other hand,isthe study or an investigation ofthe existing business orproposed venture’ssustainability04/08/2022Prof. Emanuel A. Mjema2
Cont…Viability for defined period with norequirement for survival after theperiod is ended is known astime-limited viability.For example:The plans for specific event such asKilimanjaro marathon requires time-limited viability.04/08/2022Prof. Emanuel A. Mjema3
Cont…It determines whether the proposalshould be approved or not.It determines how long abusiness will last04/08/2022Prof. Emanuel A. Mjema4
Cont…Viability can be assessed in terms ofthe following criteria:Social viabilityInstitutional viabilityEnvironmental viabilityTechnical viabilityEconomic and Financial viability04/08/2022Prof. Emanuel A. Mjema5
1. Social viabilitySocial analysis is undertaken toexaminethe aspects like employment, i.e. effect ofproject on employment,possible sideeffects on some peopleandissues ofquality of life,opportunities andincome distribution.The project analyst would also examinetheeffects of a project on particulargroups/regions.04/08/2022Prof. Emanuel A. Mjema6
2.Institutional viabilityHow does the proposedproject relate tothe various levels of power oftheexisting institution?Within the project, what are the lines ofauthority, delegation, line of reporting,and organisational procedures?The proposal should be examinedto seethat the project is manageableand arelationship has been developed amongstthe project and the institution.04/08/2022Prof. Emanuel A. Mjema7
3. Environmental viabilityThe environmental analysis shows theacceptability of the project asto thepossible conservation and preservation ofthe environment.Even if the project is highly feasible onthe marketing, financial and technicalaspectsif the operation does not warrantenvironmental friendly operation andcould produce environmental hazardsthen the project may not continue.04/08/2022Prof. Emanuel A. Mjema8
4. Technical viabilityThe analysis considers the technicalrequirements of the proposed projectThe technical requirements are thencompared to the technical capability of theorganizationThe systems project is consideredtechnicallyfeasible if the internal technical capability issufficient to support the projectrequirements.Theanalyst must find out whether currenttechnical resources can be upgraded oradded to in a manner that fulfills the requestunder consideration04/08/2022Prof. Emanuel A. Mjema9
5.Economic viabilityEconomic analysiscould also be referredto as cost/benefit analysis.

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Net Present Value, Prof Emanuel A Mjema

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