It means that before the production of any product, the company must guarantee that it has the capability to deliver from start to finish. A company must conduct a feasibility study to determine whether or not the company can produce with experiencing zero to minimal hiccups along the way. Providing a technical feasibility study is a critical document for many companies. What is a technical feasibility report, and what is its importance to different processes in the manufacturing and production of products? The article provides valuable information about the document, including its description, components, and a how-to guide to help individuals gain a better understanding. A section of the article also addresses frequently asked questions about the document.

What Is a Technical Feasibility Report?

A technical feasibility report contains a technical feasibility study. It details what the company intends to deliver as a product or service to customers. It details various elements, including materials, transportation, labor, business location, and technology, that are necessary to accomplish the proposed goods and services. It represents the tactical and strategic plan that describes the procedure of producing, storing, delivering, and tracking the products and services. The technical feasibility report contains valuable information that makes it an excellent tool for troubleshooting options and long-term plans. It also serves as a comprehensive flow chart showing how goods and services evolve and go through different stages in the business to reach the target market physically. Project managers utilize technical feasibility studies to pinpoint the positive and negative results of a project before completely investing a considerable amount of money and time into the process. The goal of the feasibility study is to emphasize potential problems that can happen in the lifetime of the project and determine the pursuance of the project after careful consideration of various factors.

According to a research article entitled ‘What is a pilot or feasibility study? A review of current practice and editorial policy’ published in July 2010, out of the 54 papers from target journals, only 50 percent of reports are pilot studies that plan to conduct further investigations. Meanwhile, only eight articles show a follow-up through a major study.

Components of a Technical Feasibility Report

Technical feasibility reports contain information about how the company plans to deliver a product or service to consumers. The key to having an effective technical feasibility report is to ensure that the reader understands its content through a comprehensive document. Technical feasibility reports focus on logistics and strategies. Below are the essential components that the document must contain.

Executive summary: The executive summary section highlights the key points of each part of the technical feasibility report. A researcher can write the summary in advance to provide a quick outline or guideline that they can follow as they continue to complete the technical feasibility report. It is often more convenient and more concise to write the executive summary after the completion of the study to have all the information to compose the section. Whichever way the researcher chooses, the executive summary appears at the beginning of the technical feasibility report.Study outline: When the researcher decides to write the executive summary at the last part of the report, they can prepare a simple study outline to help guide them through the entirety of the study. The order presenting the technical aspects and information of the study does not overweigh the as ensuring all the essential components are within the report that details and represents how the company plans to run the business. There is also no need to indicate specific financial details in the technical report as it is not the main focus of the document. However, note that the technical feasibility report must support the financial data from a different document. The outline must contain information about materials, labor, transportation, technology, and physical location. Guarantee a thorough description of the services and products that the company plans to offer. It must provide investors with a solid reason for investors to choose the business over others.Material requirements: The material requirement section lists all the materials that the company requires to produce the product or service. The section of the feasibility report indicates where they plan to get the materials. It must indicate information about possible bundle discounts available as the business continues to grow and if there is a plan to manufacture parts in the future. It must also include the parts and supplies that the business intends to use for production. It must also incorporate a material list that the company needs for good processing and manufacturing. Financial information is not necessarily attached to the report. However, the technical feasibility study must have a spreadsheet attachment of financial data that supports the narrative assessment.Labor requirements: A business cannot run, offer services, and produce goods without the help of individuals to fulfill processes and procedures. Labor is one of the most essential and biggest expenses for small businesses. Indicate the number of required employees to run the business at present to foresee possible additions to employee rosters in the future. The researcher can break the labor requirements into various categories, including senior management, office staff, clerical support, distribution staff, productions staff, and professional teams, including lawyers, engineers, accountants, and mailing and shipping employees. If the organization plans to outsource its labor force for fulfilling orders, fundraising activities, and other events, make sure to indicate them in the feasibility report with its target institutions.Transportation and shipping requirements: The technical feasibility report contains information about the transport and shipment of small and bulk items from a company to its customers. Local carriers can send smaller goods, while larger items use freight or trucking companies. If a company handles perishable goods, special handling requirements must be in place. Special permits are also required to ship special items, while nonprofits can apply for delivery discounts. For companies offering services, the report must detail the transportation options for personnel.Marketing requirements: The marketing requirement section of the technical feasibility report details the marketing plans of a company. Instead of indicating simple advertising plans, elaborate on the marketing events and promotional activities the company intends to launch. Detail the materials and methods for advertising, including print materials and social media marketing. It must also explain the advantages of selecting the company’s product over others.Physical location: The location of the business has a significant impact on its success. If the current location is a home-based office, the section must detail the plans of transferring to a larger office, preferably office space outside the home. It must also include plans for storage houses, warehouses, factories, and other facilities and discuss the pros and cons of the physical location of the business. Technological requirements: No business runs without the presence of technology. The technological components of the feasibility report must indicate a descriptive discussion of the answering systems, hardware and software components, and inventory management. It must also discuss cash register systems and the possibility of accepting credit cards, bank cheques, and online payments. If the company plans to utilize special devices to accommodate persons with disabilities, teleconference facilities, and equipment, it must be within the technical feasibility report. Aside from these, cellphones, PDA systems, alarm and security systems are also part of technological requirements.Target dates: The target date section details to the investors when the organization plans to do the concepts. It is critical to indicate all the necessary steps to accomplish the organizational goals. Cover everything starting from business and team meetings, equipment purchases, facility rentals, and the procedure and date for the business opening. It is necessary to be reasonable, as the company cannot offer empty promises to the investors.Financial information: As much as possible, refrain from enticing investors with growth projections and potential return of investment (ROI). Relying solely on technical feasibility studies is not the best way to impress investors. Lending institutions read entire reports and draw their conclusions, so it is critical for technical and financial information to reconcile. If the feasibility study projects growth, so must the ability of labor and other costs to support growth. Technical components as the textual representation of financial data because it provides detailed information on the projection of expenses. It demonstrates to potential clients, investors, and lenders that the company visualizes its long-term needs towards fruition.Technical feasibility study summary: In this section of the report, the company details all its technical requirements, starting from production down to customer receipts. The information provides valuable information to investors regarding business operations. Presenting ideas for products and services requires comprehensive procedures to make a profit. The summary provides necessary information on the physical and logistical mechanics, including how to make products stand out that lead to consumer purchase.

How To Write a Technical Feasibility Report

A technical feasibility report contains a technical feasibility study that provides relevant context to various aspects of a particular project. It is an excellent planning tool that companies utilize to provide a clear overview of the process from start to finish. The section below is a helpful guide to writing a technical feasibility report.

  • 1. Indicate the Project Description

    The initial step to writing a technical feasibility report is to gather all the necessary background information regarding the project and write a comprehensive project description. For example, if an organization needs to increase its online presence and acquire more online sales through social media advertising and promotions on the web, then the initial part of the report must detail an advertising plan or campaign that the company needs to implement to achieve its goal.

  • 2. Describe the Possible Solutions

    The next step of writing the technical feasibility report is to perform an alternate needs analysis and makes recommendations and possible solutions for the project. Write the resolutions in a bulleted or numbered list to make things easier to understand. Next to these solutions, the researcher must indicate the steps or methods that the company needs to take.

  • 3. List the Evaluation Criteria

    After describing the possible solutions, the next step is to define the evaluation criteria for the presented solutions. In this step of writing the report, the researcher must investigate and study the solutions, putting them against evaluation criteria. It gives the researcher to evaluate the findings and draw possible conclusions of the report. Each technical feasibility report has a unique set of requirements that is crucial to the creation of the document. Support the evaluation criteria with sufficient evidence that supports research theories.

  • 4. Propose the Most Feasible Solution For the Project

    After determining the criteria for each possible solution of the study, the research must select the most appropriate and feasible out of the list. Ensure that the resolution follows the SMART goal setting procedure and allows the company to use project resources optimally while gaining the most advantageous benefit.

  • 5. Compose a Viable Conclusion

    The final step to writing the technical feasibility report is to develop a conclusion by summarizing the aim of the project and the most feasible solution for success.

FAQs

What are examples of technical feasibility?

There are different types of technical feasibility in various industries and companies. These include project concepts, infrastructure functionality, business facilities, data quality checks, information security, and procurement plans.

What is technical feasibility?

Technical feasibility refers to the planning procedure that details the production of goods and services, determining whether the procedure is achievable and possible for the company.

How do you assess technical feasibility?

When assessing the technical feasibility of a project, a researcher must prepare a preliminary analysis for a proposed planning procedure. Afterward, they must present a projected income statement, conduct a market survey, develop a viable business plan, prepare a balance sheet, and review the collected data to produce a conclusion.

Every business endeavor starts with research studies, including technical feasibility studies. Organizations that invest in developing a technical feasibility study for their business plans often see long-term results and gain the trust of investors. It helps set out the production plan. The selling process of goods and services requires a lot of time to perfect, considering essential components like budgets, production teams, facilities, and marketing plans. Through a carefully thought out plan, the company is more successful in bringing more consumers and them making more purchases. Get your technical feasibility report from the article above and choose from 10+ SAMPLE Technical Feasibility Report in PDF | MS Word for download.