Let's start with the definitions of the words feasibility and feasibility. We take them from the dictionary of the Royal Spanish Academy online. Feasibility: “quality or condition of feasible”, Feasible: “what can be done”; Viability: "quality of viable", Viable: "Which, due to its circumstances, is likely to be carried out".
If we appreciate the two definitions, they are very similar, of course, without entering into semantic or dialectical discussions, perhaps there we will find a difference; but the purpose of this writing is to differentiate the concepts within the projects.
A feasible project, that is, one that can be executed, is one that has passed four basic evaluations:
- Technical Evaluation Environmental Evaluation Financial Evaluation Socio-economic Evaluation
The approval or "approval" of each evaluation we will call viability; These viabilities must occur at the same time to achieve the feasibility of a project; for example a project may be technically feasible but it may not be financially viable, and so are the other possible combinations; then with an evaluation that is not feasible, the project will not be feasible.
In the technical evaluation, topics related to market behavior, available technology, legal aspects and possible organizational structure are analyzed.
The market study can be taken separately from this evaluation and its analysis carried out independently; Due to the fact that its results mark transcendental several aspects not only of the technical evaluation (size, location, among others) but also of the financial one (sales projections, profitability, among others).
The environmental evaluation refers to the results of the environmental impact study that must be carried out to quantify and qualify the interference that the project will cause when inserted in a biotic and abiotic environment; and it could be that the impact is positive or negative.
In the case that it is negative, you must also consider how to direct the project within the parameters of current environmental legislation and what is your sustainability plan for the affected environment.
In the projects that we seek feasibility, they are projects that seek to produce a good or service to satisfy a need or fulfill an expectation; for which it is necessary to define its profitability or not, which is the objective of the financial evaluation.
To finish, we have the socio-economic evaluation; and we mention it thus making reference to, and emphasis, on the social impact of the project, although in a deeper analysis it would sound somewhat redundant considering that economics, by definition, is a social science that seeks to satisfy material human needs.
Here the affected population (project coverage), its impacts (benefits or losses) and its relationship with the economic variables of a region (country) will be analyzed, for example: employment generated, contribution to GDP, relationship with the development plan, between others.
It is important to evaluate these variables, since the project may have restrictions regarding economic policies, for example: import and export, exchange rates, tariffs, among others.
In conclusion, a feasible project is one that is technically, environmentally, financially and socio-economically viable.
If the project is feasible, it is possible to think about designing a project plan for its execution and to be able to turn the project into a productive unit of a proposed good or service (operation).
At this point, the Project Management can be used as a project development tool.
