Project Feasibility Study Template – Free Word Download
Introduction to the Project Feasibility Study
Before a project is initiated, budgeted, or planned, a fundamental question must be answered: Can we actually do this?
Many projects fail not because of poor execution, but because they were doomed from the start. They relied on technology that did not exist, assumed a budget that was fantasy, or attempted to navigate a regulatory environment that was impassable. The Project Feasibility Study is the investigative tool used to prevent these disasters. Enjoy this Project Feasibility Study Template – Free Word Download
Unlike the Business Case, which argues why a project should be done (the value proposition), the Feasibility Study analyzes if the project can be done (the viability). It serves as an objective, unbiased assessment of the project’s potential for success. It is a reality check.
This template utilizes the industry-standard TELOS Framework. TELOS stands for:
- Technical Feasibility
- Economic Feasibility
- Legal Feasibility
- Operational Feasibility
- Scheduling Feasibility
By systematically evaluating the project against these five dimensions, you provide the decision-makers with the data they need to approve, reject, or modify the project concept.
This document is typically produced during the pre-initiation or concept phase. Ideally, it is conducted by a neutral party or a dedicated analyst team rather than the person who proposed the idea, to ensure objectivity. The following sections will guide you through conducting the research, analyzing the data, and structuring your final recommendation.
Part 1: Executive Summary
Although this is the first section of the document, it should be written last. It synthesizes the findings into a “Go / No-Go” recommendation. Executives will look here first to see the verdict.
Overview of the Initiative
Instructions:
Briefly describe the proposed project. What is the problem being solved, and what is the proposed solution? Keep this to 3-4 sentences.
Example:
“The proposed initiative involves the construction of a new 50,000-square-foot automated distribution center in Nevada. This facility aims to reduce West Coast shipping times by 48 hours. The study evaluates the viability of this construction given the current volatile steel prices and local labor shortages.”
Summary of Findings (The TELOS Dashboard)
Instructions:
Provide a high-level scorecard. Use a Traffic Light system (Green = Feasible, Yellow = Risky/Caution, Red = Not Feasible).
Table: Feasibility Scorecard
| Dimension | Rating | Key Finding |
| Technical | Green | Technology is mature and available. |
| Economic | Yellow | ROI is positive, but upfront CAPEX is higher than the standard budget cap. |
| Legal | Green | Zoning permits are attainable; no major hurdles. |
| Operational | Red | Severe shortage of skilled warehouse managers in the region. |
| Scheduling | Yellow | Timeline is tight due to supplier lead times. |
Final Recommendation
Instructions:
State clearly whether the project should proceed.
- Option A: Proceed as Planned.
- Option B: Proceed with Modifications (Recommended).
- Option C: Do Not Proceed.
Part 2: Problem Statement and Background
To assess feasibility, you must understand the context. Why is this idea being proposed in the first place?
The Business Need
Instructions:
Define the “Pain Point” or the “Opportunity.” Be specific.
Example:
“Current manual sorting processes result in a 3% error rate, costing the company $1.2M annually in returns and reshipments. Competitors who have automated have reduced error rates to 0.5%.”
Proposed Solution Description
Instructions:
Outline the concept being tested. This is not a detailed design but a high-level conceptual model.
- Scope: Implement ‘AutoSort 5000’ robotic arms.
- Location: Main Warehouse, Sector B.
- Users: 20 Warehouse staff members.
Part 3: Option Analysis
Feasibility studies rarely look at just one path. They usually compare the proposed solution against the status quo and perhaps a “middle ground” option.
Instructions:
Define the alternatives you analyzed.
- Option 1: Do Nothing. (Continue with manual sorting).
- Option 2: Partial Automation. (Upgrade software but keep manual labor).
- Option 3: Full Automation. (The proposed project).
Why this is important:
Sometimes the proposed project is feasible, but Option 2 is more feasible and profitable. This section proves you looked at the landscape broadly.
Part 4: Technical Feasibility (Can we build it?)
This section assesses the hardware, software, and engineering capabilities required.
Technology Assessment
Instructions:
Answer the following questions:
- Maturity: Is the technology proven, or is it bleeding edge? (Bleeding edge carries high risk).
- Compatibility: Will it integrate with our existing systems (Legacy ERP, Database)?
- Availability: Can we buy it off the shelf, or must we build it from scratch?
Example Assessment:
“The ‘AutoSort 5000’ is a proven commodity with 500+ installations globally. However, integration with our legacy AS/400 system requires a custom middleware API which does not currently exist. This introduces a moderate technical risk.”
Resource Capability
Instructions:
Do we have the people to build it?
- Internal Skills: “We have 3 developers, but none know Python, which is required for this integration.”
- External Support: “We will need to hire a specialized vendor for the API development.”
Verdict for Technical Feasibility:
[e.g., Feasible with Support. We can build it, but we must outsource the API work.]
Part 5: Economic Feasibility (Should we afford it?)
This is a cost-benefit analysis summary. It asks if the financial return justifies the investment.
Total Cost of Ownership (TCO) Estimation
Instructions:
Summarize the estimated costs (Development + Operations). Refer to the Cost Estimate (Template 25) and OPEX Estimate (Template 28) if available.
- One-time Cost (CAPEX): $2,500,000.
- Annual Operating Cost (OPEX): $150,000/year.
Projected Benefits
Instructions:
Quantify the savings or revenue.
- Labor Savings: Reduction of 10 FTEs ($500,000/year).
- Error Reduction: Savings of $1.2M/year.
Financial Viability Metrics
Instructions:
Calculate the Return on Investment (ROI) and Break-even point.
- ROI: 35% over 3 years.
- Payback Period: 18 months.
Verdict for Economic Feasibility:
[e.g., Highly Feasible. The project pays for itself in under two years, which meets the corporate hurdle rate of 24 months.]
Part 6: Legal Feasibility (Is it allowed?)
This section navigates the minefield of laws, regulations, and contracts.
Regulatory Compliance
Instructions:
Identify applicable laws.
- Data Privacy: “Does the system store customer data? If yes, is it GDPR/CCPA compliant?”
- Safety: “Does the robotic arm meet OSHA safety standards for human-robot collaboration?”
- Environmental: “Does the construction require an Environmental Impact Assessment?”
Intellectual Property (IP) and Contractual Issues
Instructions:
Check for patent infringements or contractual blocks.
- Patents: “We have verified that the software solution does not infringe on competitor patents.”
- Exclusivity: “Our current contract with Vendor A prohibits us from using Vendor B’s hardware until 2026. This is a major blocker.”
Verdict for Legal Feasibility:
[e.g., Conditional. Feasible only if we can renegotiate the exclusivity clause with Vendor A.]
Part 7: Operational Feasibility (Will it work here?)
This is often the most overlooked section. A system might work on paper and make money, but if the users hate it or the culture rejects it, it will fail. This is the “Human Factor.”
Cultural Fit and Acceptance
Instructions:
Assess how the organization will react.
- Stakeholder Analysis: “The Warehouse Union is likely to oppose the automation due to job loss fears.”
- Management Support: “Regional managers are supportive, but local supervisors are skeptical.”
Process Impact
Instructions:
How does this change daily life?
- Current Process: “Workers pick items manually.”
- New Process: “Workers supervise robots.”
- Gap: “The current workforce lacks the computer literacy required to supervise robots. Significant training or rehiring is required.”
Verdict for Operational Feasibility:
[e.g., Low Feasibility (High Risk). Without a comprehensive Change Management and retraining program, the workforce will reject the new tools.]
Part 8: Scheduling Feasibility (Can it be done on time?)
Time is a constraint. If the project is technically possible but takes 3 years, and you need it in 6 months, it is not feasible.
Timeline Estimation
Instructions:
Draft a high-level timeline.
- Phase 1 (Design): 2 Months.
- Phase 2 (Procurement): 4 Months (Lead time on robotics).
- Phase 3 (Install): 2 Months.
- Total Duration: 8 Months.
Constraint Analysis
Instructions:
Compare the estimated duration against the deadline.
- Required Deadline: “Must be live before the ‘Black Friday’ peak season (November).”
- Start Date: “If we start in March, 8 months puts us in November. This leaves zero buffer for delays.”
Verdict for Scheduling Feasibility:
[e.g., Marginal. The schedule is technically possible but extremely tight. Any supply chain delay will cause us to miss the critical Black Friday window.]
Part 9: Risk Assessment Summary
Summarize the “Showstoppers.” These are risks so high that they might deem the project unfeasible regardless of the other benefits.
Instructions:
List the top 3-5 major risks identified during the study.
Table: Feasibility Risks
| Risk Area | Risk Description | Severity | Probability | Potential Mitigation |
| Supply Chain | Robotics vendor is quoting 16-week lead times due to chip shortages. | High | High | Pre-order equipment immediately; pay for expedited shipping. |
| Labor Relations | Union strike action in response to automation announcement. | High | Medium | Engage Union reps early; guarantee no layoffs (retrain/move staff). |
| Technical | Legacy API integration fails. | Medium | Low | Run a 4-week Proof of Concept (PoC) before signing the full contract. |
Part 10: Conclusion and Recommendations
This section provides the final answer to the “Can we do this?” question.
The Verdict
Instructions:
Select one of the following conclusions and write a narrative explaining it.
- Feasible: The project is viable across all dimensions. Proceed to Business Case.
- Feasible with Conditions: The project is viable if specific risks are mitigated (e.g., Budget increased, Timeline extended).
- Not Feasible: The project carries too much risk, costs too much, or cannot be built. Stop now.
Recommended Next Steps
Instructions:
Tell the reader what to do next.
Example:
“Based on the analysis, the project is deemed Feasible with Conditions. The Economic and Technical cases are strong. However, the Operational risk regarding Union acceptance is critical.
Recommendation:
- Initiate a ‘Phase 0’ focused solely on Union negotiation and Change Management planning.
- Do not sign the hardware contract until Union buy-in is secured.
- Allocate an additional $50k to the training budget to address the skills gap.”
Part 11: Step-by-Step Guide for Conducting the Study
To complete this template effectively, follow this research process.
Step 1: Define the Boundary
Before asking “Is it feasible?”, define “It.” Is “It” a full system overhaul or just a pilot? The smaller the scope, the higher the feasibility.
Step 2: Interview the Experts (Technical)
Do not guess about technology. Talk to the Lead Architect or the IT Director. Ask: “Is this integration actually possible?” Record their specific concerns in Part 4.
Step 3: Consult the Market (Economic)
Get rough quotes. You cannot do economic feasibility without price tags. Send out a Request for Information (RFI) to vendors to get ballpark numbers.
Step 4: Check the Rules (Legal)
A 15-minute meeting with Legal Counsel can save you millions. Ask: “Are there any regulatory blockers?”
Step 5: Walk the Floor (Operational)
Go to where the work happens. Watch the users. Ask yourself: “Will this fancy new tool actually work in this dusty, noisy environment?” If the tool requires delicate handling and the environment is a construction site, it is not operationally feasible.
Step 6: Map the Calendar (Scheduling)
Work backward from the deadline. Be realistic about holidays, approval cycles, and shipping times.
Step 7: Synthesize and Score
Look at the five TELOS dimensions together. If you have four Greens and one Red, the project is likely a Red. A failure in one area (e.g., Legal) usually kills the whole project.
Part 12: Glossary of Feasibility Terms
- TELOS: The acronym for Technical, Economic, Legal, Operational, and Scheduling feasibility.
- Gap Analysis: The comparison between what we have (Current State) and what we need (Future State).
- Proof of Concept (PoC): A small experiment designed to verify that a specific technical theory works.
- Market Scan: A review of available commercial solutions to see if the technology exists.
- Showstopper: A single constraint or risk that makes the entire project impossible (e.g., “The activity is illegal”).
Conclusion
The Project Feasibility Study is the most cost-effective way to save money. By spending a small amount of time and resources upfront to investigate viability, you avoid spending millions on a project that was never going to work.
A well-written feasibility study is objective and honest. It is not a sales pitch. If the project is a bad idea, this document should say so. In fact, a Feasibility Study that concludes “Do Not Proceed” is a success because it prevented a failure.
Final Checklist for this Template:
- Did you address all five TELOS dimensions?
- Is the recommendation clearly stated in the Executive Summary?
- Did you consider the “Human Factor” in the Operational section?
- Are the financial estimates based on data or guesses?
- Have you identified any “Showstoppers”?
By rigorously applying this template, you ensure that your organization invests only in projects that are grounded in reality and capable of delivering value.
Meta Description:
A comprehensive template for conducting a Project Feasibility Study using the TELOS framework (Technical, Economic, Legal, Operational, Scheduling) to assess project viability.
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