Operational feasibility

economic-dictionary

The operational feasibility consists of the analysis of the productive resources, including the human ones, necessary for the realization of an economic project.

Therefore, operational feasibility focuses on company processes, unlike others such as technical (technical resources) or financial (financial resources).

In addition, the study of the operational feasibility allows to know the urgency of implementing a process and the possible acceptance of this by the personnel.

Feasibility study

Importance of productive feasibility

Operational feasibility is essential both in companies that manufacture products and in those that provide services. In the former, the utility is clear, any production process must be feasible, that is, achievable.

In the latter, although it may not seem so obvious, it is also essential to be efficient in managing time or labor costs. When we are going to provide a service, it is convenient to break it down into steps or phases and calculate the optimal times and the costs involved.

Stages to analyze operational feasibility

As we have already mentioned, we must know in depth the productive processes of the company or the phases of realization of the different services. This will help us analyze operational feasibility.

  • First of all, it is advisable to have a meeting with those responsible for production and the personnel involved. We must be clear about what we are looking for, what we have and where we want to go.
  • Once it has been planned, the production manager must prepare a report and follow up on it. This should be as detailed as possible, including all the necessary productive and operational resources.
  • Finally, this report should be sent to management for their feasibility study. If it is finally approved, it will be launched establishing control periods to avoid possible deviations.

Example of operational feasibility

Take, for example, a business consultancy that aims to create a new type of business services. It is proposed to offer them the realization of strategic plans.

To know the final price at which you must sell them, a series of processes is proposed, as seen in the figure.

First, there will be a meeting with the operational director and those involved in carrying out the plans. The different phases of the same will be established and times, materials to be used and necessary human resources are calculated, as well as their cost. All this will be part of the operational feasibility and the report will go to management for the feasibility study.

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