Economic feasibility studies carried out by Proxion Process are typically geared towards the analysis of the financial viability of a given process, project and/or engineering venture. This is usually a very important study to carry out before starting any project since the main aim of investment in any project is profitability, among others. Proxion Process can provide accounting and advisory feasibility studies enabling organisations to assess the viability, cost and benefits of process engineering projects before financial resources are allocated. We also provide independent project assessment and enhance project credibility. Economic analysis could also be referred to as cost/benefit analysis. It is the most frequently used method for evaluating the effectiveness of a new project. In economic analysis, Proxion Process’ procedure involves, among others, the determination of the benefits and savings that are expected from a candidate process system and compare them with costs.The economical feasibility will review the expected costs to see if they are in-line with the projected budget or if the project has an acceptable return on investment.
Built on the information provided by Proxion Process in the feasibility study, a business case can be used to convince the targeted audience (senior engineers, project and engineering managers, the management teams and other stakeholders) that a particular process engineering project should be implemented. It is often a prerequisite for any project funding approval. The business case will detail the reasons why a particular project should be prioritised higher than others. It will also sum up the strengths, weaknesses and validity of assumptions as well as assessing the financial and non-financial costs and benefits and underlying preferred process options.
A Proxion Process economic feasibility study can help your engineering team and organisation to:
- Define the business requirements that must be met by the selected process project and include the critical success factors for the project
- Detail alternative approaches that will meet specific requirements, including comparative cost/benefit and risk analyses
- Compliance to relevant legislative requirements and permitting
- Recommend the best approach for preparing a specific process engineering case or moving through the implementation process
Our feasibility studies and business cases can help you answer crucial questions such as:
- Have the alternatives been carefully, thoroughly and objectively examined?
- What are the consequences of each choice on all relevant areas?
- What are the results of any cost/benefit studies?
- What are the costs and consequences of no action?
- What are the impacts on the various interest groups?
- What are the timelines for decisions?
- Are the consequences displayed to make comparisons easier?
- Are the proposed revamp, retrofit, optimisation and new process system cost effective?
- Do benefits outweigh costs?
- What is the estimated cost of hardware?
- Is the project possible given the resource constraints?
- What are the savings that will result from the project?
- Is there a selection among alternative financing arrangements (rent/lease/purchase)?