Writing Feasibility Study

Operational feasibility study is written after analyzing the technical, economic and scheduling studies.  It should determine if the proposed project feasibility study will be implemented.  It will measure the proposed project if it can solve the current problems and satisfies the requirements identified during the analysis phase.

During operational feasibility study, social issues, external and internal issues also analyzed including manpower problems, manager resistance, organizational difference, policies and rules, social acceptability, legal aspects as well as government regulations. Operational feasibility study always measure all aspects needed

An operational feasibility study will determine if the proposed solution can be implemented without any hassle such as staffing. Through out the operation, anticipated operational risk should be identified as well as positive result including customer satisfaction to weigh if the propose project or study will still pursue.

In terms of computer upgrading or computer programs a solution, operational feasibility study is projected the proposed system if it can solve the current problems with the use of manual operation. Management or employee should also ready to accept the change. The proposed system also measure if it can provide reliable services as well cost effective information including accurate reports and if really benefits the company.

Marketing Feasibility study is written in order to know and identify the potential market and market competition. It is use as marketing tool to identify possible problems and obstacles for the implementation of new project or laughing new products or services. It should identify how things done including the sales projection and cost of the project.

Market feasibility study is used as assessment if the proposed business is going to be successful in terms of marketability. Such marketability includes the geographic location since market feasibility study also explains the importance of the business in the selected area. Proposed business proposal will be implemented based on the market feasibility study since it will evaluate the viability of a business proposal whether it will be success or failure.

Some elements of market feasibility study are current market including the market competition as well the expected future market potential.  Also, it included the prospective client and sources of income.

Market feasibility study is done through research such as having a questionnaire and surveys to know the status of the prospective client to know the exact need of the people in the area as well the demand of a certain product or services. It is a collection of information about the possible market that can be used in deciding how a product or services will be priced, delivered and marketed. In addition, don’t forget to collect information about the strengths and weaknesses of the competitors.

If a business is interested in a new business enterprise or a new venture for instance marketing a new product so it is important to conduct a feasibility study of the idea to assess its viability.  The purpose of a business feasibility study is to determine if the business idea can generate profitability and remain possible in the marketplace for a long time.

• Executive Summary.  It contains the overview of the study. It should be able to understand the study by your investor, clients and company’s management without having to read the entire text.

• Product Description. Describe the product such as the detail information as well as the benefits and advantages of the product. Include pictures of the product and other technical description. Tell also the difference of the product being offered compared to other products. Name the manufacturer and supplier as well as other information such as patents and related information.

• Market Analysis. It should provide information about the product’s potential market size such as number of customers and income.  Discuss the target market for the new product.  Also, it should contain the factors which will affect the demand for the product such as the demographic characteristic of the target client or customer as well as the existing competition.

• Financial Analysis. Discuss the financial information such as the price and related calculations that back up the pricing.  Also, includes start up and working capital requirements, sales forecasts and profitability.

It is important to identify the parts or areas of a feasibility study in order to compose a good feasibility study.

The following are some areas of a feasibility study to be writing in:

1. Introduction – It includes background information about the proposed business including proposed name and purpose of the business. Also, determines the skills and experience of the business investors.
2. Business Description – It provides information about the business including the product or services to be offered and nature of industry.
3. Market Analysis – It includes knowing the current and potential demand of the product as well as the characteristics of buyers and sales forecast over the first three years.
4. Management Analysis – Prospective entrepreneurs need to know the skills and talent of the management team in launching the proposed business. It provides details specification of management personnel including primary duties and organization structure.
5. Technical Description – It explain the detailed requirements of facilities, inventory and production control as well as raw materials and other utilities.
6. Risks and Problems – It should identify the major and minor risks and problems of the proposed business opportunity including the timing and financial start-up.
7. Economic Plans –  It should contains the cost and benefit analysis.
8. Financial Plans – It includes the total estimated cost of the proposed business or project as well as projected cash flow and profitability.

Introduction

Pico hydro is a term used to describe the smallest systems, covering hydro electric power generation under 5kw.  Depending on its size, a Pico hydro power system may provide a small, remote community with adequate electricity to power light bulbs, radios, and televisions, among other appliances.  It was given the name “Pico” by Nigel Smith because it needs some different ways of thinking to micro, mini and larger hydro power  There are thousands of site where people have a source of falling water but do not have electricity.  For there rural communities in Bataan, Pico hydro is the lowest technology for generating electricity.  Lighting from these sources is cheaper than using kerosene lamps, and safer too.

1.1    Load Profile

1.1.1    Location/accessibility

The Pico hydro is located in Maluya Central Balanga City, Bataan.  The barangay is accessible by one main dirt road approximately 30 minutes from the main road.  This proposed site for pico hydro project is easily access through any transportation vehicle.  The climate is generally hot and wet with an average yearly temperature of 29 degree Celcius.  The summer dry season occurs from January to April.

1.1.2    Water Resource

There is one canal in Maluya Central which providing irrigation for rice cultivation.  This canal generally runs dry during the summer due to irrigation and lower rainfall.  Although rainfall is plentiful during wet season and the canal is primarily use for rice paddies.

1.1.3    Electricity Supply

The barangay currently has access tp grid electricity provided by Peninsula Electric Cooperative (PENELCO) where the local electricity rate is 9 pesos/kWh plus 12% tax and 5 peso/month charge.

The availability of power can be intermittent brown outs, ranging from a few minutes to several hours, being common.  In addition, tropical storms and typhoons cause power outages lasting up to several days or week in extreme cases.  Thereafter, intermittency in local electricity in the local electrical supply would prove to be detrimental to the consumer of Maluya.

Fifty percent of households in Maluya are electrified ad from 10 to 20 households in the said place are un-electrified (50%)  Small number of household are available in this place because of the fact that the place is new to the public and the road is not yet constructed.  The life of the residence here s considered to be below the poverty threshold.  As is well known, most villages that are un-electrified are also whom to people who are poverty stricken and multi dimensionally deprived.  Un-electrified households primarily used candles and kerosene lanterns for light, with some using rechargeable car batteries for lighting, televisions, or radios.  The local rate for charging batteries is 50 pesos a fairly significant amount for many families whose income are just enough and limited for their basic needs.  Therefore, pico hydro project are proposing to offer battery charging, which could help for local community to reduce their daily expenses.  In addition, it will provide a small revenue stream to help pay for routine maintenance of the Pico hydro system.

1.2     Social Economic Profile

1.2.1    Local Economy

Jobs are very difficult to come by Maluya, resulting in an unemployment rate of even lower.  Families are considered to below poverty threshold where their limited economy exists based around agriculture including rice, root crops, and fruits.  Fishing is also common among the local population.  An agricultural laborer can expect to make around 100 pesos a day budget enough to support the needs of their family.  One household are manufacturing small amount of craft work, making income but not enough for their needs.

1.3    Rationale

Hydropower, hydrokinetic power or water power that is derived from the force or energy of falling water, which may be harnessed for useful purposes.  Since ancient times, hydropower has been used for irrigation and the operation of various mechanical devices, such as watermills, sawmills, textile mills, dock cranes, and domestic lifts.  Since the early 20th century, the term is used almost exclusively in conjunction with the modern development of hydro-electric power, the energy of which could be transmitted considerable distance between where it was created to where it was consumed.

Another previous method used to transmit energy has employed a trompe, which produces compressed air from falling water, that could then be piped to power other machinery at a distance from the energy source.

Water’s power is manifested in hydrology, by the forces of water on the riverbed ad banks of a river.  When a river is in flood, it is at its most powerful, and moves the greatest amount of sediment.  This higher force results in the removal of sediment and other material from the riverbed and banks of the river, locally causing erosion, transport and, with lower flow, sedimentation downstream.

In hydrology, hydropower is manifested in the force of the water on the riverbed banks of a river.  It is particularly powerful when the river is in flood.  The force of the water results in the removal of sediment and other materials from the riverbed and the banks of the river, causing erosion and other alterations.  This section  explains how to select and install Pico hydro system for run of river location in Maluya.  Many aspect of the implementation methods described however, are common also to other design including those suited to low head sites and to those which benefits individual consumers rather than small communities.

In starting up in the Pico hydro business or starting a programmed of community pico hydro is important to carefully select the first scheme as this will act as a focus for future interest.  The chosen location should be accessible to you and to the customer/funder to make it easy for future business.  The optimum site for the pico turbine system in a social application context should have the condition:

Site Location

Pico hydro power generate a limited power, because of that, is oriented to reduced applications as small grid or individual used.  According to this, to avoid high grid expenses and power losses, the site should not be too far end users  As a standard, for 1kW of power, the distance should not be more than 2 km.

Flow

The flow should be enough throughout a year, extreme flows can affect to the system performance, and the excess flow must be controlled.  For measurement of the flow, it should, at least, be done twice a year, during the lowest season (January – April) and also in the highest season (end of September – beginning of October).

Contribution from community

Apart from the suitable technical conditions, is recommendable that community can’t contribute to the project with labors, local material available in the area such as power poles, aggregate sand and gravel) etc.  and also people interested in the formed as technicians to assure the continuity of the project.

The impact of the pilots on end user beneficiaries has been carefully considered in the project.  The benefits include an increase in the quality of life, with better lighting system enabling community activities during the evenings.  The beneficiaries has out that fuel saving were made and there was as increase in the productive output as well as increased opportunities for educational and social activities.

1.4     Statement of the Problem

Due to the unavailability of the power source to number of small communities in Maluya Central, Balanga City, Bataan, most of its residents suffer and experience continues used of kerosene lamps and candles emitting CO2 that may resulting to a fire and also to a low level performance, unprogressive community, uncomfortable lifestyle and inability of doing things as convenient, easy and effective.  This Pico hydro generation power project enable to supply electricity to the consumer of Maluya Central.  It provides technical data and procedural guidance for the systematic of the viability of potential small hydro power addition and focuses upon the concepts, technology, economic and financial issues to these additions.

1.5    General Objectives

To develop a pico hydro electric generator system designed for run of river as economic source of electrical energy in Maluya, Central, Balanga City, Bataan

Specific Objectives

• To adopt pico hydro technology as a source of transmitting electrical energy in Maluya Central, Balanga City, Bataan
• To install transmission system from pico hydro to a near households
• To provide effective and convenient energy in low cost
• To maximize the usage of water

1.6    Significance of the study

The impact of this study to the consumer of Maluya includes an increase in the quality of life, with the better lighting system enabling community activities during the evening and opportunities for educational and social activities  There will be fuel savings and unused of kerosene lamps and candles emitting CO2 which is the primary cause of fire.

To the beneficiaries, the Pico hydro system will be a very big help since it is a renewable kind and is very convenient and cheap.  Also to the environment, it does not produced carbon emissions and will definitely reduced global warming in a little way.  With the generated electric power, the project aims to contribute a sustainable development in this rural village through improved lighting for household/community work and school assignments, information/entertainment by radio and television, communication access and small livelihood opportunities.

1.7    Scope and delimitation

This study focuses on the use of renewable energy through the flow of water in a river of Maluya Central, Balanga City, Bataan.  One of the factors to be considered is the flow of water since it is the driving force to make the turbine move.  As the study comes along, we concluded that the flow of water in Maluya has an electric potential to produced electrical energy.  It measures 200 watts and can now supply one household.  We also consider the generator and the turbine. The turbine is required to drive with a certain speed while the generator should be at a certain height on top of the turbine for safety reasons and efficiency.  On rainy seasons, the water may rise and the flow could be treacherous to the system.  However, with the used of penstock this could prevent damage to the system.

Detailed hydrological data for the area is hard to come by.  The flow rate of the stream was determined by measuring the cross sectional area of the stream along with the surface velocity of the water using the float method.  This method is prone to some error, however the actual design flow is a fraction of the total stream flow measured during dry season and thus should be available year round.  Sufficient care was taken to ensure the measurement were as accurate as possible and suitable for this feasibility study.

By:

Jerome dela Cruz
Kenneth Aquino
Wilgem Regino Crespo
John Andrew Molino
Rosauro J. Fernando Jr.

Abstract

The world that we are living now is experiencing different environmental problems.  Some affect the water, others affect the air, and still others affect the land and the animals.  Some of the largest problems are now affecting the world.  As globalization continues and the earth’s natural processes transform local problems into international issues, few societies are being left untouched by major environmental problems like global warming.

Philippines have experienced temperature spikes brought about by climate change.  It has been observed that warming is experienced most in the northern and southern regions of the country, while Metro Manila has warmed less than most parts.  This kind of environmental problems can be reduced or eliminated through corrective actions or proactive measures.  Every environmental problem has causes, numerous effects, and most importantly, has a solution.

The increase in the use of natural and renewable energy sources is one of the major solutions to take the burden off our current dependency.  By making switch to natural and renewable energy sources, you will be doing your part in helping to improve the quality of the environment and the air we breathe.  To resolve such predicament, people should strive to manage or conserve electrical energy to find other ways to generate electric power out of some high anticipated natural like water.

The pico-hydro electric generator system is a proven technology and is feasible solution to existing problem, not only lessening the demand of electric energy, but also as a source of energy for some rural areas here in Bataan.  The system is an efficient way in keeping the environment clean because it only uses water rather than harmful toxins to produce electricity.  Other ways producing energy that we used today create harmful effects to the environment.  Therefore, hydro electric power is much more environment friendly way of producing energy.

The proponents developed a pico-hydro project designed to test the electrical energy potential of a river available in Maluya Central, Balanga City, Bataan and to supply energy to the target house near the site.

Title: Feasibility Study: Pico Hydro for Rural Electrification

By:

Jerome dela Cruz
Kenneth Aquino
Wilgem Regino Crespo
John Andrew Molino
Rosauro J. Fernando Jr.

This is to certify that I have supervised the operation of and read the feasibility study prepared by  Ronron de Silva entitled “Pico Hydro for Rural Electrification” and that the said project has been submitted for final examination by the Oral Assessment Committee.

Engr. Rolando Marquez
Project Study Adviser

As members of the Oral Assessment Committee, we certify that we have examined this feasibility study presented before the committee on April 03, 2000, and hereby recommend that it be accepted as fulfillment of the feasibility study for the degree in Bachelor of Science in Electrical Engineering

Engr. Niel Enriquez
Panel Member

Engr. Romeo Tedore
Committee Chairman

One of the important parts of a business plan is a feasibility study because it determines if a business will be successful or not considering the environment, the market, operational requirements and financial analysis.

Create a page about your business to know if a feasibility study is even necessary.  This information will serve as an outline for your feasibility study. Then, review the market background for your business as well as your probable customer according to age, gender, classification.  Also, take note your major competitors direct and indirect and think how and why your customer will choose your business over your competitors.  List the strengths and weaknesses of your competitors.  You can write two good points and two bad points to determine why they are competition.

Next step is to create a list of materials and equipment to be used in your business to become operational.  Determine the management requirements such as employee’s qualification and employment infrastructure for your business. Know the costs for equipments and other start up costs as well as the location preparation.

Be sure to present your feasibility study with charts, graphs and table to visualize and clarify information before submitting it to another party or authority. It should contain useful facts and figures to be used in decision making.

The following are elements of a good business plan:

1. Executive Summary. It should be short and clear.  Try to keep it in one page or half page.  It should contain the synopsis of your entire business plan such as the business concept or idea, financial status, business position and business achievements.
2. Company Description. It states the name of the company as well as the legal status and organization structure.  It also describes the company’s mission statement.
3. Business Description. It should provide information about the industry whether a product or service.  Describe the product or services you want to market and give an idea to make a profit using the product or services.
4. Market Strategies. It includes market analysis such as defining the target market as well as the pricing, distributing and promotional strategies. It describes here the marketing plan.
5. Operation Plans. Details the location, facilities and equipment as well as the tracking of inventory.
6. Management Plans. Includes the quantity and quality of people within the organization to determine the success of the business.  It indicates the qualification and responsibilities of each member of the organization.
7. Financial Plans. It includes the income statement, cash flow projections, and balance sheet.  In making financial projections,  explain assumptions to know the figures used.

Business plan is compose of executive summary, company analysis, industry analysis, customer analysis, and customer analysis, competition analysis, marketing plan, management plan, financial plan, operation and development plan.

Executive summary – it contains precise synopsis of the business plan.  It should be easy to read and no longer than 2 to 4 pages.  Executive Summary should sell idea to prospective investor such as the size and scope of the market opportunity, profitability model and skills of the management team to execute the plan.

Company Analysis – it includes the planned overview of the company and explains how the company is organized such as the products and services to offers.

Industry Analysis – it asses the competitors and analyze the market research issue including the size of the target market and trends of the industry.

Customer Analysis – it involves in knowing what the customer wants. It is essential to know exactly and identify the target customer such as average income of the customer and geographically location of the customer. Also, know how its products and services satisfy their need and able to pay.

Competition Analysis – it defines the direct and indirect competitors and evaluates their strengths and weaknesses

Marketing Plan Analysis – it contains the strategy knowing the target markets including the company’s pricing strategies, promotional strategies, branding strategies, product, and services description.

Management Plan – it shows that the company has required human resources. It should have key management personnel including their background in order to make a successful business as well the boards of directors or board of advisors

Financial Plan – it involves the growth of the company’s revenue and profitability model.  It also evaluates the amount of capital needed, the proposed use of these funds and the anticipated future earnings such as the projected income statements, balance sheets, and the cash flow statement.

Operation and Development Plan – it explains the functions required to run the business, milestones to be reached as well as the quality should be controlled.