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Components of Feasibility Study

Discuss about the Feasibility Study Of Kiwi Auto Parts.

A feasibility study can be said as the analysis of successful nature of a project.  It  generally  affects  certain  factors  like  economic,  technology,  legal  and  scheduling.  A project  report  is  generally  used  to  determine  positive  and  negative    output  of  a  project  before   giving  a  good of  amount  of  time  and  money to  it.  A feasibility study checks the energy of an idea, or a project. The  ultimate goal  behind  studying   feasibility  is  to  judge  on  the  potential  problems  that  can   occur  in  a project. It  helps  in  checking  all the   significant  factors  that  should  be   checked  before  pursuing  a  project. Feasibility  study  allow  companies  to  check  all  the  necessary  information  before   establishing a  new  business  (Balaji & Murugaiyan, 2012).

The  components of  feasibility  study  are  Description, market  feasibility,  technical  feasibility, financial  feasibility,  organizational  feasibility.

Description:  This mainly checks a brief layout of the business, the various product  and  service  that  can  be  offered  and  how  they  will  be  delivered to the consumer.

Market  feasibility:  It  mainly  describe  the  current  and  market  potential,  competition, sales  estimation  and  prospective  buyers  of  a  industry.

Financial feasibility:  It mainly checks the amount of money needed   for start up business.  It  also  checks  the  various  capitals that can  be  used  for  the  establishment  of  business  and  type  of  return  expected  from  it.

Organizational  feasibility: It  can  be  define  as  the  corporate  and  legal  structure  of  business  and  this  may  contain  information  about  its  founder  and  their  background  of  their  profession. It also seeks the skills needed for   proper functioning of the firm (Duan et al ., 2012).  

The six basic parts of feasibility study are project scope, current analysis, Requirements, approach, evaluation and review.

Project  scope: This particular  part  is  mainly  used  for  business  problem  and  various opportunities  that must be addressed.  The project should be concise and according to point. It  is  also  important  for  defining  various  parts  of business  directly  and  indirectly  containing  project  members  and  users.

Current  analysis  mainly  helps in  implementation  of   current  technique  of  working  of  a system,  product. By  the  help  of  this  particular  analysis one  can  get  a  proper  idea  about  current  system  or  product. It also  helps  in getting  clear  view  about  pros  and  cons  of  a  system. With the help on this analysis, certain elements of product and current system can be discovered which can save both money and time (Bekele & Tadesse, 2012).

Set of Criteria

Requirement: This totally depends on working model of a project; it varies from product to product. Requirement analysis of  a  bridge will  obliviously  differ  from  that  of  a  information  system. 

Approach: It  represents  recommendation  for  various  solution  and  actions  for  satisfying  the  requirements. Use  of  various  structure  and commercial  alternatives are  needed  to  be  taken  in  account.

Evaluation: This particularly helps in analysis of a selected approach.  In this step, the total cost of the projects is analyzed.  It   helps in estimation of  labour cost and  other  expenses  for   project  scheduling  which  informs the  project  path  and  it  start  and end  dates.  

Review:  The consisting elements are  taken  together  in  a  feasibility  study   and  a  formal  opinion  is  taken  from  all  the involved  parties. The review gives benefits like approval of   project decision and judging thoroughness of a project. Now there are some instances where feasibility  of  a  project  is  rejected  and it  is  the  duty  of  manager  or  senior  executive  to  explain  the  reason  for  rejection ( Khan & Beg, 2013). 

SDLC stands  for  System  Development Life  Cycle  aims  to  give  high  quality  system  that  satisfy  the  needs  of  the  customers  with  proper  time  and  cost.  It works properly with the modern infrastructure of information technology. SDLC  is  a  non  practical  model  which  aims  to  provide  various  methods  for  developing systems  throughout  their  life  cycles. SDLC include the following activities like requirement, design, implementation, testing, deployment, operation and maintenance (Mahalakshmi & Sundararajan,  2013).

Phases of SDLC are Planning, analysis, design, implementation and maintenance.

Feasibility  study  or  planning:  This  step  main   involve  defining  of  the  problem  and  checks   the  scope  of   a  system.  It also confirms the feasibility of project and scheduling of various projects.

Analysis  and  specification:  This step  mainly  involves  gathering  and  analyzing  of  important  information. It also prioritizes the basic requirements of a project. At the end of  this  phase  a  software  requirement  specification  document (SRS)  is  published  which  specifies  the  hardware  and  network  requirement  of  a  particular  system ( Unuakhalu,  2014).      

System Design: This phase mainly includes the designing of various   application, networks and database. It  helps  in  creating  a  proper  training  and  operation  plan  for  better  performance  of  the  system.

Implementation:  This  step  mainly  aim  in  designing  source  of  a  particular  system  through  programming.  After  that  a  test  report  containing  error  is  prepared  through  various  test  plans  which  has  some work  like  checking  criteria  and  resource  allocation.


Maintenance:   It includes various activities like phone support  and on-site  support  for  various user  that  is  mandatory  during  installation  of   a  particular  system.

Kiwi Auto parts is considered as one of the most successful distributor among various retailers of   New Zealand (Abdelaziz et al., 2013).  Tom Mitchell actually owned an   auto-shop in central region of Auckland.  Previous year this auto manufacturing made a turnover of about 2 million profits. A review is  conducted  by  Alpha IT  solutions  Ltd (AITS) on  the   growth and  performance  of  Kiwi  solution  private  limited.  As per the AITS report, the system of automobile is becoming unmanageable day by day. Due to overtired staff  an  order  cancellation  worth  of  300 dollars  is  taking  place  every  year  in  this  car  manufacturing  firm (Bai, 2013).  Communication has  been  deteriorating  between   Marketing  manager  and  retailers  has  come  down  to  ground. After analyzing   the  problem  AITS  suggested  the  points  to  the  car  firm.  The  car  manufacturing  firm  should  install  a  subsystem  for  communication  among  its  various  systems.  All the staffs of this car firm need the path of access to various systems (Thompson et al., 2014).

A  new  system  containing  a   database  which  can  store  information  of  700 customer  should  be  designed  for  various  customer  for  this giant  car  company   from  New  Zealand. The system should be designed in such a way that it can store details of more than 10,000 products. AITS stand for Alpha IT solutions Ltd (AITS) (Zeng & She, 2015). AITS have suggested  various methods for providing better services and products to their customer by reducing network between centers  and  implementation  of  certain  things  like  Hardware upgrades,  hardware  upgrades,  Development  of  system  and  a  new  system  known  as  SAGE  and  Distribution  of  scheduling  system  Dissched (Kamel & Fung, 2014). AITS have a new HR package, which will cost around 11000 dollars to the car company (Mohammadi & Mostafaeipour, 2013). A  new  package  known  as  SIAM  can  be  used  to  replace  all  the current  sales, inventory,  Accounts  and  Marketing  departments  of  the  car  company  known  as  Kiwi Auto Part Ltd (Li et al.,2013).  For better performance of SIAM, it needs some extra hardware costing around 11,000 dollars. HAMIS  which  is  a  smaller  application  than  SIAM  has  been  considered  for  working  in  this  car  firm.  After  that  an  up gradation   is  required  in  the system  for  its  better  performance.  The particular application must be coded with proper programming (Cannon et al., 2015).

Phases of SDLC

Various departments like   distribution and scheduling, HR, marketing, sales, inventory, and accounts can be managed with the help of ERP system.  ERP system stands for Enterprise Resource planning is an application that manages business such as sales, purchasing, accounting, and human resource and customer support. By Using ERP technology, various departments  of  this  car  manufacturing  firm  can  collect, store, manage  and  interpret  about  data  from  various  business  bodies. ERP  technology  is  mainly  used  by  large  enterprise  because  of   the  capital  hardware  requirement  like  server  and  multiple  work  station.  Some of examples of   ERP software are Bright pearl, Intact, Net Suite, Odoo, PeopleSoft.

Kiwi Auto Part Ltd should use ERP system software as it increases efficiency, promote collaboration, and make accurate forecasts, lower operation cost, and Increases data security (Ahmad & Cuenca, 2013).

 Increase efficiency:  Various Business like accounting, sales, marketing, and production and  inventory  are  all  summed  up  in  one  particular  platform  known  as  ERP. ERP system  helps  in  easier  collection  and  accessing  of  data  across  various  firms  and  organization.  ERP also provides manager  and  stakeholder  with  quick  check  up  of  the  progress  of  their  report. It  also  give   freedom  to  manager  or  senior  executive  to  enquire  detail  information  about  managers  with  few  clicks (Hejazi, Halpin & Biggs, 2014).

Promote  collaboration:  ERP  is  proved  to  be  key  technology  to  break  walls  between  various  departments.  A  new  technology   known  as  data  soil  is  integrated  in  various  systems  with    a  process  known  as   superhighway  links  all  systems  from  various  departments  together. It is also used to link various team from different departs.  Further, a new technology known as Saas ERP provides a more secure connection between remote teams and headquarters through internet connection (Laudon  & Laudon, 2013).

Make accurate forecast:  Many business firms use Forecast,   as it helps the firms to shape strategies for the new projects (Richardson & Johnson, 2015).  ERP  brings   various  business  solution  to  a  firm  which ultimately  enhances  data  integrity (Schott,  2016).  Advanced ERP solution helps the employees to learn about  various  algorithm  that  allow  users  to  go  down  into  the  Big  data  system (Almajali, D.Masa'deh & Tarhini, 2016).

Lowers operational cost:  ERP allow various departments like production, engineering, customer service and other business bodies to work together  using  various  techniques like  data  from real  time  operation   which  proven  to solve problem  at  much  faster  rate (Galy & Sauceda, 2014).

Increased data security: ERP system has firewalls and restriction that helps in controlling data breach in any situation.  A solo data warehouse helps in tightly monitoring of various security systems (Del Pozzo et al., 2013).  It also gives the authority to managers or senior executives to deactivate the access of terminated employees of a firm while granting access permission to the new or fresh employees (Hancock, 2016). 


ERP software has following modules like Human Resource Management, manufacturing, Supply chain management, and inventory and purchasing.

HRM (Human resource management): This module mainly focuses on various tools like time tracker, timesheet, a database containing employee records and job profile. HRM   mainly focuses to manage travel expense and reimbursements of its employees.

Sales and marketing: This module of ERP mainly focuses to handle sales inquires, sales orders and sales invoice. The more advanced version of ERP has certain features like rules for calculating tax and keeping a track of shipping details (Castro et al., 2015).. The ultimate goal of sales and CRM module is to work together to  gear  up  the  sales  cycle  and  bring  more  profit  to  the  respective  firm (Chou et al.,2014.

Manufacturing:  Manufacturing   module is also known as Engineering or Production department (Verslegers et al, 2013). It helps various businesses to work more efficiently in certain areas like planning of production, outsourcing of various materials and product forecasting. This module is integrated with supply chain management to provide certain function like planning of products and control of inventory (Haddara, 2014).

There are certain functions   like up gradation, customization, Integration,  training  and  setup  which  must  be  considered  for  better  performance of  ERP  system.

Upgrade:  Firstly Kiwi Auto Part Ltd need new ERP system in their firm for increasing their performance level.  If the installed ERP module is older than ten years then it has to be replaced (Ghosh, Ghose & Mohanta, 2013).

Customization:  Firms like Kiwi Auto have various processes to look after various departments. Accounting  saves  or  production  lives  are considered  as  a  daily  output  on  the  contrary   sales  live is  considered  as  a  monthly  quota( Choi,  Chow & Liu, 2013).

Integration:  ERP should work efficiently with the provided   system. There are certain numbers of   points that must be considered from top to bottom. These include interaction between various systems (ERP into existing CRM), module to system and judging the file transfer capabilities (Snyder, 2015).

Training and setup:  ERP solution  must  be  installed  by  someone  who  has a good  technical  knowledge( Matzen, Alhajji & Demirel, 2015).  If  a  firm  lacks a  technical  team  then  senior  executives  or  managers  should  have  clear  understanding  about  the  various  service agreements.  In  many  cases  installation  is  charged  differently  from  license  but  many  a  times  vendor  provide bundled  plans (Johnson & Wichern, 2014). In  some  cases  setup  is  very  easy  for  activating  accounts  to  access  various  vendor  servers (Ram  Corkindale & Wu, 2013).

There are some drawbacks of  ERP software’s  like  Unsupported  application,  security risk,  lack  of  compliance:

Unsupported Application:  Now  consider if  a  business  has  dozen  of productivity  apps,  then a  plug  and  play  ERP would not  run  smoothly on  it (Lin, Shi & Burton, 2013) .  If there are  large number  of  software’s    in  a  system  then  it  can  narrow  the  choice  of  finding  a  fully  integrated  ERP  solution  in  a  system (Ziemba,  Ob??k & Informatyczna, 2013). 

Security: ERP software mainly focuses to   provide full coverage of operation and financial task

(Zhang, Shi & Liu, 2013).  ERP  wider  scope  has  more  access  points, which  ultimately  increases  the  risk  of  data  breach  in  it. Poorly configured ERP software can  have  more security  risk  in  it  and  incompatible  software’s  and  application  can  lead  to  crashes (Norris & Caprioli, 2013).

 ERP  vendors  are  more  focused to  put  security  checks  and  controls  in  their  latest  versions  as  any  data  breach  will  ultimately  hamper the productivity  of  their  business (M. Beheshti et al .,2014)

Lack  of  Compliance:  This  module  mainly  focuses  a certified  account  in  ERP project.


Candidate 1

Portion of System Computerized

   A  new  system  containing  a   database  which  can  store  information  of  700 customer  should  be  designed  for  various  customer  for  this giant  car  company   from  New  Zealand


The system should be designed in such a way that it can store details of more than 10,000 products

Servers and Workstations


Kiwi Auto Part Ltd should use ERP system software is as it increases efficiency, promote collaboration, and make accurate forecasts, lower operation cost, and Increases data security.

Software Tools Needed

Kiwi Auto Part Ltd should use ERP system  software’s  as it increases efficiency, promote collaboration, make accurate forecasts, lower operation cost, Increases data security

Application Software

ERP software has following modules like Human Resource Management, manufacturing, Supply chain management, and inventory and purchasing.

HRM (Human resource management): This module mainly focuses on various tools like time tracker, timesheet, a database containing employee records and job profile

Method of Data Processing

An  ERP  system  mainly  works  with  common  database  and  some  moderately  designed  software’s. It  gives  the  flexibility to  user  to store  and  retrieve data any time. 

Output Devices and Implications

up gradation, customization, Integration,  training  and  setup that must be  taken  in  account  for  their  better  performance. 

Input Devices and Implications

ERP  software  mainly  focuses   on  the increase use   of  networks,  LANs,  hardware  upgrades for  better  performance of  the  systems.


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