Feasibility Study of a Simple
Flow-through Farm The next step is to work out how
much they can produce, looking
into all possibilities and
investigating the economy of
different models of production. To
begin with they estimate the annual production and income at a
given price, with their 120 L/sec
and the average temperature at
7°C, that is the natural conditions
The Elements of a Good Feasibility
Study By kingsway Agro
Services "Those who do not do their home work do not graduate." Bryce's
Law In its simplest form, a Feasibility Study represents a definition of
a problem or opportunity to be studied, an analysis of the current mode
of operation, a definition of requirements, an evaluation of
alternatives, and an agreed upon course of action. As such, the
activities for preparing a Feasibility Study are generic in nature and
can
be applied to any type of project, be it for systems and
software development, making an acquisition, or any other project. There
are basically six parts to any effective Feasibility Study: 1.
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LOCAL FISH PROCESSING, SPOILAGE AND PRESERVATION
The
Project Scope which is used to define the business problem and/or
opportunity to be addressed. The old adage, "The problem well stated is
half solved," is very apropos. The scope should be definitive and to the
point; rambling narrative serves no purpose and can actually confuse
project participants. It is also necessary to define the parts of the
business affected either directly or indirectly, including project
participants and end-user areas affected by the project. The project
sponsor should be identified, particularly if he/she is footing the
bill. I have seen too many projects in the corporate world started
without a well defined project scope. Consequently, projects have
wandered in and out of their boundaries causing them to produce either
far too much or far too little than what is truly needed. 2. The Current
Analysis is used to define and understand the current method of
implementation, such as a system, a product, etc. From this analysis, it
is not uncommon to discover there is actually nothing wrong with the
current system or product other than some misunderstandings regarding it
or perhaps it needs some simple modifications as opposed to a major
overhaul. Also, the strengths and weaknesses of the current approach are
identified (pros and cons). In addition, there may very well be
elements of the current system or product that may be used in its
successor thus saving time and money later on. Without such analysis,
this may never be discovered. Analysts are cautioned to avoid the
temptation to stop and correct any problems encountered in the current
system at this time. Simply document your findings instead, otherwise
you will spend more time unnecessarily in this stage (aka "Analysis
Paralysis"). 3. Requirements -
how requirements are
defined depends on the object of the project's attention. For example,
how requirements are specified for a product are substantially different
than requirements for an edifice, a bridge, or an information system.
Each exhibits totally different properties and, as such, are defined
differently.
How you define requirements for software is also substantially
different than how you define them for systems. 4. The Approach
represents the recommended solution or course of action to satisfy the
requirements. Here, various alternatives are considered along with an
explanation as to why the preferred solution was selected. In terms of
design related projects, it is here where whole rough designs (e.g.,
"renderings") are developed in order to determine viability. It is also
at this point where the use of existing structures and commercial
alternatives are considered (e.g., "build versus buy" decisions). The
over riding considerations though are: Does the recommended approach
satisfy the requirements? Is it also a practical and viable solution?
(Will it "Play in Pough keepsie?") A thorough analysis here is needed in
order to perform the next step... 5. Evaluation - examines the cost
effectiveness of the approach selected. This begins with an analysis of
the estimated total cost of the project. In addition to the recommended
solution, other alternatives are estimated in order to offer an economic
comparison. For development projects, an estimate of labour and out-of-
pocket expenses is assembled along with a project schedule showing the
project path and start- and-end dates. After the total cost of the
project has been calculated, a cost and evaluation summary is prepared
which includes such things as a cost/benefit analysis, return on
investment, etc. 6. Review - all of the preceding elements are then
assembled into a
Feasibility Study and a formal review is
conducted with all parties involved. The review serves two purposes: to
substantiate the thoroughness and accuracy of the Feasibility Study, and
to make a project decision; either approve it, reject it, or ask that
it be revised before making a final decision. If approved, it is very
important that all parties sign the document which expresses their
acceptance and commitment to it; it may be a seemingly small gesture,
but signatures carry a lot of weight later on as the project progresses.
If the Feasibility Study is rejected, the reasons for its rejection
should be explained and attached to the document. Conclusion It should
be remembered that a Feasibility Study is more of a way of thinking as
opposed to a bureaucratic process. For example, what I have just
described is essentially the same process we all follow when purchasing
an car or a home. As the scope of the project grows, it becomes more
important to document the Feasibility Study particularly if large
amounts of money are involved and/or the criticality of delivery. Not
only should the Feasibility Study contain sufficient detail to carry on
to the next succeeding phase in the project, but it should also be used
for comparative analysis when preparing the final Project Audit which
analyses what was delivered versus what was proposed in the Feasibility
Study. Feasibility Studies represent a common sense approach to
planning. Frankly, it is just plain good business to conduct them.
However, I have read where some people in the IT field, such as the
"Agile" methodology proponents, consider Feasibility Studies to be a
colossal waste of time. If this is true, I've got a good used car I want
to sell them. For your feasibility study about your investment call us
on 08032861326.
of a simple flow-through farm. To
calculate with on-growing from 10 gram fry. Before we follow their
calculations, a few financial terms
need to be explained: Variable cost, fixed cost, contribution margin, variable unit cost and break-even point. The variable cost is the cost which
changes with alterations in the
level of production. The fixed cost
is the cost that remains
independent of the level of
production. Examples of fixed cost: house rental, land, depreciation,
cleaning, etc. Examples of variable
cost: feed, medicine, fry and
production labour cost. Some times
it is not obvious whether cost in
question is fixed or variable. Contribution margin is defined as
the sales price minus the variable
cost. Therefore the contribution
margin is the amount which will
pay the fixed cost and give the
profit. In calculation of the cost and in estimation of the grounds for
the business, it is often best to find
the variable cost per unit
produced. That cost is then named
variable unit cost (VUC). The break-
even point is where the sales income is equal to the cost. Such
the break-even point tells the
farmer how much he has to
produce and sell to cover all
variable and fixed cost. The Yield of the Simple Flow-
through Farm The water flow and temperature
throughout the year is known.
kingsway Agro Services can calculate how
much they can produce in a simple
flow-through system at a given
temperature by using the spread sheet file fish to water. On the
sheet called "production" they set
the flow rate 120 L/sec, feed
conversion rate 1,2 (how much
feed is needed to produce 1 kg fish)
and the net sales price 4.18 ECU/kg based on the sale as 40% fresh
fillets and 60% as fresh gutted fish
as mentioned earlier (the price is
based on return price for live fish
as listed in table on previous page).
An estimate of the annual production can be seen in table
below. The average temperature at
their site is around 7°C and their
production circle 35 tons of fish per
year. Let's turn to the table:
Subtracting variable costs such as feed costs, labour production costs
(their own) and fry cost they have
left about 52.000 ECU to pay off the
investment cost and for
maintenance of the farm plus
supporting the family. (The variable unit cost equals 2,7 ECU/kg
or 96.000 ECU total for the 35 tons.) In the table variable cost per kg
(VUC) is shown as constant. As a
matter of fact there will be a
some what higher cost pr. kg
produced at the lowest
temperature as the fish will grow slower but still need some care (it
eats little during winter time so the
feed cost will not be much higher,
but it still needs to be feed and the
farm looked after). Their production at 120 l/sec for a simple flow-through system Temp. Biomass Annual Income VC/kg Contrib./kg Contribution (kg fish) production (kECU) (ECU/kg) (ECU/kg) total (kECU) 4 25.047 32.556 136 2,71 1,47 47,98 5 22.826 34.040 142 2,71 1,47 50,16 6 20.792 34.987 146 2,71 1,47 51,56 7 18.928 35.475 148 2,71 1,47 52,28 8 17.221 35.573 149 2,71 1,47 52,42 9 15.691 35.418 148 2,71 1,47 52,2 10 14.290 34.991 146 2,71 1,47 51,57 11 13.032 34.407 143 2,71 1,47 50,7 12 11.879 33.638 140 2,71 1,47 49,57 Start-up Cost Plan for a Simple
Flow-through System The couple make an estimate of the
investment cost for the simple flow
through system plus the main
operation cost factors for the first
two years. Cost for materials for
harnessing of the water resources are estimated 2.000 ECU. Digging
the ditch for the pipeline from the
source to tanks (750 meters) will
be around 3.600 ECU, work and
gravel included. Expert advice from
engineers is needed to ensure that the pipeline will be correctly
dimensioned and designed. As said
before the pipeline is 750 meters
long and with a height difference
of 15 meters. This equals a height
difference of 20 meters per kilometer and the volume of water
will be 120 l/sec. Using the
nomogram in chapter 3 they find
that a 250 mm pipe is needed. The
15 m height difference equals 1.5
bar pressure and therefore a PN 2.5 pipe is sufficient. The price is
around 14 ECU/meter and the
material cost estimated around
16.000 ECU with bends and other
auxiliary pipes. Around 16 months
will pass from the time they acquire the fry for on growing until
their first harvest. Taking into
account the time it takes to build
the fish farm it can be estimated
that during 2 years period the
couple will work hard in the fish farm without having any income
from it - the cost, however, will not
wait until then, and has to be
financed,by one way or the other. Tank space and price To find out how much tank space is
needed for the 17 tons biomass
needed, it was calculated that 1/27 of the biomass being
small fish, 8/27 average fish and
18/27 big fish. It is also expected that the density is 20 kg/m3 of the smallest fish, 40 kg/m3 of the middle sized fish and 60 kg/m3 of the biggest fish. The total space of
the tanks is calculated as follows: 1/27 x 17tons/20kg/m3=31m3 8/27 x 17 tons/40kg/m3=124m3 18/27 x 17 tons/60kg/m3=186m3 3/11m3 kingsway has made an inventory of
available types and sizes of tanks.
Her findings show that earth ponds
and corrugated steel tanks are the
cheapest choices. The dis advantage
of earth ponds, however, is that they will demand more cleaning
work than tanks, which would be
designed for self-cleaning.
Therefore the couple decides that
corrugated steel tanks would be a
better option. According to the production plan, they need tank space of 340 m3 at maximum production. It is cheaper to buy two big tanks, 170 m3 each, than to buy more and smaller tanks.
However, there are two important
reasons for taking the more
expensive choice: 1. It allows better size grading and
therefore prevent that fast
growing fish takes all the food
from the smaller ones and thus still
increase the difference in size. 2. In case of infection, it can be
confined to one tank. One tank
must be used as starvation tank
before slaughtering. A suitable choice would be two tanks of 15 m3 for the smallest fish, two 60 m3 tanks for middle size and three more 60m3 for the bigger fish.
Feasibility study in fish and pig farming do vary due to:
A.location.
B.cost of laboure.
C.The type of fish and fish feed.
D.The cost of selling the farm product in the area...
Feasibility study is very important before starting a fishfarm.
The Elements of a Good Feasibility
Study By kingsway Agro
Services "Those who do not do their home work do not graduate." Bryce's
Law In its simplest form, a Feasibility Study represents a definition of
a problem or opportunity to be studied, an analysis of the current mode
of operation, a definition of requirements, an evaluation of
alternatives, and an agreed upon course of action. As such, the
activities for preparing a Feasibility Study are generic in nature and
can
be applied to any type of project, be it for systems and
software development, making an acquisition, or any other project. There
are basically six parts to any effective Feasibility Study: 1.
The
Project Scope which is used to define the business problem and/or
opportunity to be addressed. The old adage, "The problem well stated is
half solved," is very apropos. The scope should be definitive and to the
point; rambling narrative serves no purpose and can actually confuse
project participants. It is also necessary to define the parts of the
business affected either directly or indirectly, including project
participants and end-user areas affected by the project. The project
sponsor should be identified, particularly if he/she is footing the
bill. I have seen too many projects in the corporate world started
without a well defined project scope. Consequently, projects have
wandered in and out of their boundaries causing them to produce either
far too much or far too little than what is truly needed. 2. The Current
Analysis is used to define and understand the current method of
implementation, such as a system, a product, etc. From this analysis, it
is not uncommon to discover there is actually nothing wrong with the
current system or product other than some misunderstandings regarding it
or perhaps it needs some simple modifications as opposed to a major
overhaul. Also, the strengths and weaknesses of the current approach are
identified (pros and cons). In addition, there may very well be
elements of the current system or product that may be used in its
successor thus saving time and money later on. Without such analysis,
this may never be discovered. Analysts are cautioned to avoid the
temptation to stop and correct any problems encountered in the current
system at this time. Simply document your findings instead, otherwise
you will spend more time unnecessarily in this stage (aka "Analysis
Paralysis"). 3. Requirements -
how requirements are
defined depends on the object of the project's attention. For example,
how requirements are specified for a product are substantially different
than requirements for an edifice, a bridge, or an information system.
Each exhibits totally different properties and, as such, are defined
differently.
How you define requirements for software is also substantially
different than how you define them for systems. 4. The Approach
represents the recommended solution or course of action to satisfy the
requirements. Here, various alternatives are considered along with an
explanation as to why the preferred solution was selected. In terms of
design related projects, it is here where whole rough designs (e.g.,
"renderings") are developed in order to determine viability.
The Elements of a Good Feasibility
Study By kingsway Agro
Services "Those who do not do their home work do not graduate." Bryce's
Law In its simplest form, a Feasibility Study represents a definition of
a problem or opportunity to be studied, an analysis of the current mode
of operation, a definition of requirements, an evaluation of
alternatives, and an agreed upon course of action. As such, the
activities for preparing a Feasibility Study are generic in nature and
can
be applied to any type of project, be it for systems and
software development, making an acquisition, or any other project. There
are basically six parts to any effective Feasibility Study: 1.
The
Project Scope which is used to define the business problem and/or
opportunity to be addressed. The old adage, "The problem well stated is
half solved," is very apropos. The scope should be definitive and to the
point; rambling narrative serves no purpose and can actually confuse
project participants. It is also necessary to define the parts of the
business affected either directly or indirectly, including project
participants and end-user areas affected by the project. The project
sponsor should be identified, particularly if he/she is footing the
bill. I have seen too many projects in the corporate world started
without a well defined project scope. Consequently, projects have
wandered in and out of their boundaries causing them to produce either
far too much or far too little than what is truly needed. 2. The Current
Analysis is used to define and understand the current method of
implementation, such as a system, a product, etc. From this analysis, it
is not uncommon to discover there is actually nothing wrong with the
current system or product other than some misunderstandings regarding it
or perhaps it needs some simple modifications as opposed to a major
overhaul. Also, the strengths and weaknesses of the current approach are
identified (pros and cons). In addition, there may very well be
elements of the current system or product that may be used in its
successor thus saving time and money later on. Without such analysis,
this may never be discovered. Analysts are cautioned to avoid the
temptation to stop and correct any problems encountered in the current
system at this time. Simply document your findings instead, otherwise
you will spend more time unnecessarily in this stage (aka "Analysis
Paralysis"). 3. Requirements -
how requirements are
defined depends on the object of the project's attention. For example,
how requirements are specified for a product are substantially different
than requirements for an edifice, a bridge, or an information system.
Each exhibits totally different properties and, as such, are defined
differently.
How you define requirements for software is also substantially
different than how you define them for systems. 4. The Approach
represents the recommended solution or course of action to satisfy the
requirements. Here, various alternatives are considered along with an
explanation as to why the preferred solution was selected. In terms of
design related projects, it is here where whole rough designs (e.g.,
"renderings") are developed in order to determine viability. It is also
at this point where the use of existing structures and commercial
alternatives are considered (e.g., "build versus buy" decisions). The
over riding considerations though are: Does the recommended approach
satisfy the requirements? Is it also a practical and viable solution?
(Will it "Play in Pough keepsie?") A thorough analysis here is needed in
order to perform the next step... 5. Evaluation - examines the cost
effectiveness of the approach selected. This begins with an analysis of
the estimated total cost of the project. In addition to the recommended
solution, other alternatives are estimated in order to offer an economic
comparison. For development projects, an estimate of labour and out-of-
pocket expenses is assembled along with a project schedule showing the
project path and start- and-end dates. After the total cost of the
project has been calculated, a cost and evaluation summary is prepared
which includes such things as a cost/benefit analysis, return on
investment, etc. 6. Review - all of the preceding elements are then
assembled into a
Feasibility Study and a formal review is
conducted with all parties involved. The review serves two purposes: to
substantiate the thoroughness and accuracy of the Feasibility Study, and
to make a project decision; either approve it, reject it, or ask that
it be revised before making a final decision. If approved, it is very
important that all parties sign the document which expresses their
acceptance and commitment to it; it may be a seemingly small gesture,
but signatures carry a lot of weight later on as the project progresses.
If the Feasibility Study is rejected, the reasons for its rejection
should be explained and attached to the document. Conclusion It should
be remembered that a Feasibility Study is more of a way of thinking as
opposed to a bureaucratic process. For example, what I have just
described is essentially the same process we all follow when purchasing
an car or a home. As the scope of the project grows, it becomes more
important to document the Feasibility Study particularly if large
amounts of money are involved and/or the criticality of delivery. Not
only should the Feasibility Study contain sufficient detail to carry on
to the next succeeding phase in the project, but it should also be used
for comparative analysis when preparing the final Project Audit which
analyses what was delivered versus what was proposed in the Feasibility
Study. Feasibility Studies represent a common sense approach to
planning. Frankly, it is just plain good business to conduct them.
However, I have read where some people in the IT field, such as the
"Agile" methodology proponents, consider Feasibility Studies to be a
colossal waste of time. If this is true, I've got a good used car I want
to sell them. For your feasibility study about your investment call us
on 08032861326.
It is also
at this point where the use of existing structures and commercial
alternatives are considered (e.g., "build versus buy" decisions). The
over riding considerations though are: Does the recommended approach
satisfy the requirements? Is it also a practical and viable solution?
(Will it "Play in Pough keepsie?") A thorough analysis here is needed in
order to perform the next step... 5. Evaluation - examines the cost
effectiveness of the approach selected. This begins with an analysis of
the estimated total cost of the project. In addition to the recommended
solution, other alternatives are estimated in order to offer an economic
comparison. For development projects, an estimate of labour and out-of-
pocket expenses is assembled along with a project schedule showing the
project path and start- and-end dates. After the total cost of the
project has been calculated, a cost and evaluation summary is prepared
which includes such things as a cost/benefit analysis, return on
investment, etc. 6. Review - all of the preceding elements are then
assembled into a
Feasibility Study and a formal review is
conducted with all parties involved. The review serves two purposes: to
substantiate the thoroughness and accuracy of the Feasibility Study, and
to make a project decision; either approve it, reject it, or ask that
it be revised before making a final decision. If approved, it is very
important that all parties sign the document which expresses their
acceptance and commitment to it; it may be a seemingly small gesture,
but signatures carry a lot of weight later on as the project progresses.
If the Feasibility Study is rejected, the reasons for its rejection
should be explained and attached to the document. Conclusion It should
be remembered that a Feasibility Study is more of a way of thinking as
opposed to a bureaucratic process. For example, what I have just
described is essentially the same process we all follow when purchasing
an car or a home. As the scope of the project grows, it becomes more
important to document the Feasibility Study particularly if large
amounts of money are involved and/or the criticality of delivery. Not
only should the Feasibility Study contain sufficient detail to carry on
to the next succeeding phase in the project, but it should also be used
for comparative analysis when preparing the final Project Audit which
analyses what was delivered versus what was proposed in the Feasibility
Study. Feasibility Studies represent a common sense approach to
planning. Frankly, it is just plain good business to conduct them.
However, I have read where some people in the IT field, such as the
"Agile" methodology proponents, consider Feasibility Studies to be a
colossal waste of time. If this is true, I've got a good used car I want
to sell them. For your feasibility study about your investment call us
on 08032861326
