Feasibility Study Template for projects PDF

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Feasibility Study Template for projects and making proposal decisions...

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Feasibility Study Template Version 0.1

1

Guidance note – The first stage of the Collaborative Category Management Process adopted by SSF will include some initial analysis at the very start of the Category Sourcing Process. This include; 

High level analysis at Master Category level to support the proposed approach;



The analysis at this stage should include as a minimum: o o o o o o o

A broad scope of the Category Verifiable spend; Details of existing contracts; Details of the major suppliers; A high level market analysis; A profile of the customer base and how it is segmented ie central government, local authorities, health sector, education sector etc; and Other identifiable stakeholders ie trade associations or bodies, environmental/sustainability.



Options; and



Next steps

Depending on the complexity of the Master Category the Feasibility Study should not realisticaly exceed 15 to 20 sheets of single sided pages of A4. At this stage the study will be at Master Category level e.g. Fleet A more detailed analysis will be undertaken at the Initiative Detailed Analysis Phase and a full Feasibility Study document (layout/contents as below) produced to support the go/no go decision of moving on to full Project Launch. In most cases at this stage the study will be for a Category e.g. tyres. If the decision is taken to progress, the content of the Feasibility Study report will be the starting point for the Source Plan.

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TABLE OF CONTENTS 1 1.1 1.2 1.3 1.4 1.5 1.6

Executive Summary Background and Baseline Benchmarking and Opportunities Recommendations Implementation Planning Savings Return on Investment

6 6 6 6 6 6 6

2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8

Terms of Reference Introduction and Background to Analysis Scope of Work Objectives Expected Deliverables Resources Available Management Arrangements Reporting Regime Risk Management and Mitigation

8 8 8 8 8 8 8 8 8

3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8

Business Requirements Who? (e.g. customer, stakeholders) What? (e.g. functional, volumes) Where? (e.g. locations, sites) When? (e.g. time frequency volatility) Why? (e.g. demand drivers) Needs and Nice to Haves Using QCLDM (Quality, Cost, Logistics Development Management) Missing Information and Assumptions

9 9 9 9 9 9 9 9 9

4 4.1 4.2 4.3 4.4 4.5 4.6

Goods and Service Delivery Who? (e.g. suppliers, stakeholders, subcontractors) What? (e.g. specifications, volumes) Where? (e.g. locations, sites) When? (e.g. time, frequency, volatility) Deliver Model Missing Information and Assumptions

10 10 10 10 10 10 10

5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8

Supply Market Balance of Power Rivalry (Porters 5 Forces Analysis) Substitutes New Entrants Product/Service Development Technology External forces (PEST analysis) Number of Buyers and Number of Suppliers

11 11 11 11 11 11 11 11 11

6 6.1 6.2 6.3 6.4 6.5

Procurement Influence Maturity Capability Capacity Structures

12 12 12 12 12 12

3

6.6 6.7 6.8

Process Constraints Models

12 12 12

7 7.1 7.2 7.3

Baseline and Benchmarking Approach Spend and Price by Assumptions

13 13 13 13

8 8.1

Procurement Levers Overview

14 14

9 9.1

Opportunities Overview

15 15

10 10.1

Risks Overview

16 16

11 11.1 11.2 11.3

Recommendations Tactical Strategic Programme

17 17 17 17

12 12.1 12.2 12.3

Savings Indentified Assumptions Confidence Type

18 18 18 18

13 13.1

High Level Delivery Plan Overview

19 19

14 14.1

Resource Plan Overview

20 20

15 15.1 15.2 15.3 15.4

Return on Investment Investment Cost (year 1, year 2……etc) Benefit (year 1, year 2…….etc) Break Even Point Assumptions

21 21 21 21 21

16 16.1

Appendices Table of Appendices

23 23

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Feasibility Study Executive Summary Version 0.0

5

0 Executive Summary 0.1

Background and Baseline

0.2

Benchmarking and Opportunities

0.3

Recommendations

0.4

Implementation Planning

0.5

Savings

0.6

Return on Investment

6

Feasibility Study Main Body Version .0

Part of the Pan Government Collaborative Procurement Programme

7

1

Terms of Reference 1.1

Introduction and Background to Analysis

1.2

Scope of Work

1.2.1

What’s In

1.2.2

What’s Out

1.3

Objectives

1.4

Expected Deliverables

Including Descriptions, Quality, Criteria, 1.5

Approval process

Resources Available

Including Assigned staff, Roles, Duration 1.6

Management Arrangements

1.7

Reporting Regime

Including schedule, structure and content 1.8

Risk Management and Mitigation

8

2

Business Requirements 2.1

Who? (e.g. customer, stakeholders)

2.2

What? (e.g. functional, volumes)

2.3

Where? (e.g. locations, sites)

2.4

When? (e.g. time frequency volatility)

2.5

Why? (e.g. demand drivers)

2.6

Needs and Nice to Haves

2.7

Using QCLDM (Quality, Cost, Logistics Development Management)

2.8

Missing Information and Assumptions

9

3

Goods and Service Delivery 3.1

Who? (e.g. suppliers, stakeholders, subcontractors)

3.2

What? (e.g. specifications, volumes)

3.3

Where? (e.g. locations, sites)

3.4

When? (e.g. time, frequency, volatility)

3.5

Deliver Model

3.6

Missing Information and Assumptions

10

4

Supply Market 4.1

Balance of Power

4.2

Rivalry (Porters 5 Forces Analysis)

4.3

Substitutes

4.4

New Entrants

4.5

Product/Service Development

4.6

Technology

4.7

External forces (PEST analysis)

4.8

Number of Buyers and Number of Suppliers

11

5

Procurement 5.1

Influence

5.2

Maturity

5.3

Capability

5.4

Capacity

5.5

Structures

5.6

Process

5.7

Constraints

5.8

Models

12

6

Baseline and Benchmarking 6.1

Approach

6.2

Spend and Price by

6.2.1

By Supplier

6.2.2

By Business Unit

6.2.3

By Change over Time

6.2.4

By Product

6.3

Assumptions

13

7

Procurement Levers 7.1

Overview Lever

Description

Leverage volume

Simplify specification

Develop suppliers

Reduce joint costs

Contract smartly

Increase competition

Rationalise suppliers

14

8

Opportunities 8.1

Overview

# Opportunity 1

Run tender

Description e.g. Run tender exercise for X spend across Y business units.

Timescale

Difficulty Of Implementation

Start

Complete

e.g. M

e.g. 3 months

e.g. 12 months

Type of Benefit e.g. Reduced price

2

3

4

5

6 7

15

9

Risks 9.1 ID

Overview Risk

Probability

Impact

Mitigation

1 2 3 4 5 6 7 8 9

16

10

Recommendations 10.1 Tactical

10.2 Strategic

10.3 Programme

17

11

Savings Indentified 11.1 Assumptions 11.2 Confidence 11.3 Type

18

12

High Level Delivery Plan 12.1 Overview Apr 06

Jun 06

Sept 06

Dec 06

Feb 07

Apr 07

Jun 07

Tactical activities Te am formation

Contract award

Manage contracts

Go to market

Duration

Activities

End of phase milestones

c.12 weeks

c.12 weeks

c.12 weeks

c.12 weeks

For example • Verify the Opportunity Assessment • Complete the Source Plan • Identify all stakeholders and map

For example: • Commence migration of offcontract spend to competitive arrangements • Establish compliance regime to improve current and future arrangements

For example: • Assessment of bids • Run eAuction

For example: • Establish supplier and contract management regime for new arrangements • Track benefits

For example: • Review effectiveness of strategy

For example: • OJEU notice

For example: • contract award

For example: • supplier management regime

For example • post implementation review

For example: • Source plan

c.16 weeks

Increase benefits realisation

19

13

Resource Plan 13.1 Overview Estimated resource Key Skills

Role Category team resource

 Planning  Operational support  Options development and

Number Duration

1

12 months

Cost

Potential sources

Internal appointment

assessment

 Analysis

20

6

Baseline and Benchmarking 6.1

Approach

6.2

Spend and Price by

6.2.1

By Supplier

6.2.2

By Business Unit

6.2.3

By Change over Time

6.2.4 6.3

By Product Assumptions

13

7

Procurement Levers 7.1

Overview Lever

Leverage volume

Simplify specification

Develop suppliers

Reduce joint costs

Contract smartly

Increase competition

Rationalise suppliers

Description...