Feasibility Study – The critical success factor in project management pot

Non-profit project : • Run by NGO or International Organizations for purposes of charity, international relationship or politics • Focus in the field of agriculture technology transfer,

University of Economics and Finance

Feasibility Study – The critical success

factor in project management

Lê Quốc Thành - Engineer, BA, MA

PhD Student in CFVG

Lý lịch giảng viên

+ Học vấn :

và ĐH Chalmer –Goteborg - Thụy điển 1997.

+ Kinh nghiệm làm việc :

Lý lịch giảng viên (Tt.)

+ Các dự án đã & đang tham gia :

- Nghiên cứu Tiền khả thi Dự án Phục hồi vận tải ven biển Việt Nam 1994-1996 ( JICA - Nhật Bản).

- Dự án 2 tuyến đường thuỷ phía Nam 1995-2002 (World Bank, 80mil

USD).

- Dự án Thuỷ điện Đại Ninh – Lâm Đồng (300 Mil USD, 2004)

- Dự án khí Cà Mau (đường ống khí 240 Mil USD, 2005).

- Dự án lắp đặt thiết bị điều khiển phần RFCC ( 2,8 Mil USD, Nhà máy lọc dầu Dung Quất, 2007).

- Nghiên cứu khả thi dự án đường sắt Bình Thuận Tây Nguyên, 2008

- Country Coordinator, Long An Desalination Water Plant (Mitsui-GS)

- Country Coordinator, LNG Regasification Plant ( PVN and others)

Một số nguyên tắc nghiên cứu

trên lớp

• Không chỉ là lớp học : mà

là lớp Thảo Luận.

• Có ý kiến – Nêu ra ngay

Có ý tưởng - Viết ra ngay.

• Khuyến khích tranh luận 

Có kết luận.

• Kết luận chưa hẳn là kết

quả cuối cùng, mà có thể

là một bước tiến tới kết

quả mong muốn.

• Chúng ta sẽ học được của

Nhau Nhiều qua thảo luận.

What is matter?

What we are going to do? How?

What is the next step?

Main Content

management

develop a Feasibility Study?

I Basic concepts of project

management

1 Non-profit project :

• Run by NGO or International Organizations for

purposes of charity, international relationship or politics

• Focus in the field of agriculture (technology transfer),

education, public health improvement, fighting poverty, social study or culture, etc.

Investment project can be divided

(1) Non-facility project (non-physical project): Merger

and Acquisition project, Biz Improvement Project, Enterprise restructuring project, etc  No equipment

is installed ( Paper work only)

(2) Facility project (Physical project):

- Most important projects in economy

- Requires large capital, manpower, equipment and

construction works.

- Take several years for preparation and

implementation

- Project life is 20, 30 years or more

- Play most important role in economic growth of

country

Facility project

• All projects that we could see by our EYE is

facility project

• Road, railway, bridge, high building, power

plant, factory, new car model design : facility project

• Can be divided : (1) infrastructure & basic

industry projects that its product ( or result) will mainly be input for other industries : electricity plant, water supply, (2) Consumer project that supply products to people, households

Infrastructure project

• The fields : Oil and Gas sector, Power,

Transportation, steel, chemical, construction materials, water supply, etc

• Provide the basic need for economy

• Strong country need Perfect Infrastructure

• In 2009, VN would spend around 39% of GDP

for facility project

• Dungquat Refinery : would be 3 bil USD.

• Benthanh-Suoitien metro line : 1.2 bil USD

II Project life cycle in reality.

• Generally, project life can be (1) concept (2) development,

(3)implementation , (4) termination and hand-over for operation

• In reality of Vietnam, project can be divided into 4 groups (Decree

12/2009)

(1) National Project such as Assembly House, investment decision

made by National assembly

(2) Group A : decided by Prime Minister

(3) Group B : usually decided by Minister or Chairman of Province or

CEO of National Economic Group such as PetroVietnam, EVN, Vinacomin, VNPT, etc.

(4) Group C : usually decided by medium enterprises

• Each kind of project have different stages in development and

implementation

Project life cycle in Reality

2 Years 2 Years 2-4 Years

F/S Consultant

PMC Consultant

Master Plan

III What is the Feasibility Study

• F/S is final study of project  most important study in

preparation period of investment.

• Hitachi confirm that 75% of total cost of their project is

decided in design period ( Design is one phase in F/S).

• Mazda confirmed that 50% of product quality is decided

Other name of F/S

Detailed Feasibility Study ( F/S).

design.

• Project Introduction : Detailed description about project, legal

framework for project, project owners, etc

• Description of products or Services :

- Demand analysis of products.

- Which segment (quality) and which price could be accepted at such

quality

- Current and future competitors

• Technology and services to launch the products into market :

- Technology flow chart to manufacture the products : typical criteria

- How to build such plant :  total cost estimate cost to build

III Outline of F/S (Cont.)

• Business administration model : production

management, marketing and sale management, maintenance  operation management 

operational cost of project in operational phase

• Other issues : copy right, social issues, trade

name, ( if any)  cost to manage these issues?

• Training requirements/cost to make sure the

operation

• Risk factor  risk management  risk cost and

risk response plan

III Outline of F/S (Cont.)

- How to arrange the finance for project

- Financial risk and how to manage

- Conclusion and suggestion

IV How to proceed the F/S

+ Pre-Condition to proceed F/S :

• We should have business idea Or

• We are requested to follow an business idea.

+ We have two main ways to have F/S :

(1) We employ the professional consultant to proceed F/S and we need one or two good experts to carry out double check

(2) We have good experts as project team and proceed the F/S by

ourselves

• Who is good consultant ?

- Operated in many years or had many consultant contracts

- Professional in consultant ( mainly doing consultant work)

- Having good experts in various fields : market analysis, engineer,

financial experts, production manager, sale manager,

How to proceed the F/S by ourselves

• We do by ourselves when :

- The project is small or medium scale.

- Not complicated engineering requirement

• What should we do first ?

- Selection of Project Manager and leave all the

rest to him

- Project manager will select and manage the

project team including many kind of experts :

legal, market, technical, finance, sale, operation,

Who is project manager?

• Must be good at both technical and economic

And the soft skills should be obtained:

• Organizing , problem solving, conflict

management

• Communication skill and leadership

• Presentation skill

V Case Study

• International project invested by foreign investor

in Vietnam : The water supply project near HCM City

• Project Information shall be presented ( not

provided)

Suggestion of reading documents

• For those who pursue professional career in

project management :

• For those who pursue professional career in

project finance : accounting, project

management in general, financial risk, contract management, project finance

lehaiduong68@gmail.com

www.vietproject.org

“Chúc Học viên Khỏe và Thành đạt”