Final Mini Project 1
Final Mini Project 1
ON
“WIRELESS CHARGER”
FEASIBILITY ANALYSIS
i. DESIGN THINKING AND IDEATION 28
ii. TYPES OF FEASIBILITY 31
iii. ECONOMICAL FEASIBILITY(SWOT ANALYSIS) 32
34
iv. FINANCIALFEASIBILITY
40
v. ENVIRONMENTAL FEASSIBILITY 42
vi. LEGAL ASPECTS OF WIRELESS CHARGING 42
43
a. COMPANIES ACT 2013 43
b. FACTORIES ACT 1984 44
c. THE ENVIRONMENT (PROTECTION) ACT 1986 49
50
vii. MARKET FEASIBILITY 51
viii. TECHNICAL FEASIBILITY 52
ix. SCHEDULE FEASIBILITY 53
5.CONCLUSION
Introduction to Wireless Battery Charging
Wireless charging eliminates the cable typically required to charge mobile phones, cordless
appliances and so on. With a wireless charger, the battery inside any battery-powered
appliance can be charged by simply placing the appliance close to a wireless power
transmitter or a designated charging station. As a result, the appliance casing can be made
completely sealed, even waterproof. Besides the inherent convenience it offers, wireless
charging can also greatly enhance reliability, since the charging plug on the side of an
appliance can suffer mechanical damage easily, or simply by someone inadvertently
plugging in the wrong adapter. The underlying principle behind wireless charging is the
well-known Faraday’s law of induced voltage, commonly used in motors and transformers.
When you place your phone on the charger, the transmitter coil generates an
electromagnetic field that the receiver converts to electricity for the phone battery.
This process is known as electromagnetic induction.
Because the copper receiver and transmitter coils are small, wireless charging only works
over very short distances. Household products such as electric toothbrushes and shaving
razors have been using this inductive charging technology for many years already.
Obviously, the system isn’t completely wireless as you still have to plug the charger into the
mains or a USB port. It just means you never have to connect a charging cable to your
smartphone.
Types and working of Wireless Charging Technology
There are three types of wireless charging technology: -
Radio Charging:
This type of charging technology uses a combination of tiny batteries and consumes very
little electricity. This technology is commonly used with wireless keyboards, wireless
mouse, medical equipment, hearing aids, watches, music players, and other devices. To
send and receive wireless signals, these gadgets use radio frequency waves.
In this technique, the transmitter is linked to a socket to generate radio waves. You can
charge the battery by setting the receiver to the same frequency as that of the transmitter.
This charging method is utilized in mid-sized portable gadgets such as the Qi wireless
charging standard for smartphones, smart wearables, and Ki kitchen cordless standard for
kitchen appliances.
Fig - Qi and Magnate
Resonance Charging:
Resonance charging is a very different type of charging technique that is utilized in gadgets
that require a considerable quantity of power. These methods are employed in big laptops,
electric vehicles, vacuum cleaners, and robots. In this, a copper coil attached to the charging
device is coupled with another copper coil connected to a power source.
This wireless charging happens when both the copper coils are set to a common
electromagnetic frequency. You can easily charge the mobile device battery from the power
source. Wireless resonance charging is only possible over short distances.
WIRELESS CHARGER:
A wireless charger is a charger that is connected to the device without a charging cable. The
latest wireless charging technology, by using the magnetic field generated between the
coils to transfer electrical energy, inductive coupling technology will become a bridge
connecting charging stations and equipment.
Polymer Science offers a wide variety of EMI Shielding & Grounding solutions ranging from
sputtered films to fabric, foam and foil tapes. Polymer Science materials come in a range of
thicknesses to suit each individual application specification.
There are thousands of devices that utilize wireless charging, and the technology is rapidly
advancing as more industries focus on renewable energy including electric vehicles.
Research into wireless charging for electric vehicles, fork trucks and other mobile
equipment while in motion broadens the capability and applications for inductive charging.
The idea of wireless energy transfer dates back at least to the Tesla coil, but the full
implementation of wireless energy transfer may be realized through the mass
electrification of vehicles and devices. A number of companies now offer stationary
wireless charging for electric vehicles, and researchers are working with states to test
dynamic wireless charging.
Stationary wireless charging in electric vehicles is similar to the pads many consumers use
to charge mobile devices. A fixed pad is located in garages or parking spaces, and power is
transferred through a coil on the underbody of the vehicle.
Dynamic charging seems to be coming into its nascent stage. A number of researchers,
including teams at MIT and Stanford, have experimented with inductive power transfer
across a distance. A German start up is developing magnetized concrete where a high-
frequency current runs through an embedded coil. At scale, dynamic charging systems
could radically reduce both the weight and cost of materials in electric vehicles. Some
arguments centre on moving the focus from greater capacity and longer charging of
batteries to highly effective dynamic charging.
Whether dynamic wireless charging usurps the need for even greater performance from
advanced batteries, Polymer Science will help designers, researchers and manufacturers in
all technologies. Our P-THERM® thermal management materials help advance EV
capabilities, and our P-SHIELD® shielding & grounding materials provide solutions for the
rapid changes in wireless charging technology and other electric applications.
Conductive fabric tapes contour to irregular surfaces and are durable around edges and
angles. Conductive textiles conform easily within plastic housings, and, although thin, they
are exceptionally strong and durable. Polymer Science P-SHIELD® fabric tapes effectively
shield over a wide frequency range with a very reliable pressure-sensitive adhesive (PSA).
As wireless charging technology advances, materials that provide dual functions are
important. EV charging, including stationary charging available for current vehicles,
benefits from the multipurpose features of conductive fabrics. Fabrics protect more
sensitive components, resisting wear, absorbing shocks and conforming to abrasive edges.
This allows wireless chargers to become more compact while remaining effective and
durable.
FOAM
Lightweight conductive foam serves a number of purposes beyond shielding & grounding.
To protect delicate components, the foam fills gaps, absorbs shocks and easily conforms to
housings. Wireless charging systems are not unlike traditional electric devices. There are a
number of sensitive and delicate components that must be secure to transfer power. Foams
are widely used in aerospace, telecommunications, mobile consumer electronics and
conventional automotive. The components within a wireless charger can be protected with
an exceptional lightweight conductive or nonconductive foam.
FOIL TAPES
Polymer Science offers foil tapes as a thin, lightweight, durable and malleable material.
Both materials contour around tight angles and conform to irregular surfaces. When the
landing zone is limited to millimetres, foil is an effective material. When considering the
present designs of wireless charging and the greater plans to design infrastructure to
support wireless charging across cities and roadways, foil tapes are omnipresent.
Qi wireless technology has helped transform wireless charging as well. One of the worries
associated with creating wireless chargers was to ensure it only charged a phone - not any
foreign objects that could land on the charger, such as coins and pens. To combat this, phones
now have Qi wireless technology. A wireless charging station works by communicating to a
small receiver in a phone, and essentially the charging pad works by “asking” the device if it’s
a Qi receiver.
There are three main methods of wireless charging:
1. Charging pads: The commonly found wireless charging device on the market, this works
through inductive charging.
2. Charging bowls: An emerging technology, charging bowls rely on resonant electromagnetic
charging (i.e., the energy is ‘tunnelled’ through coils rather than spread from one primary
direction)
3. Uncoupled RF wireless charging: Charge is transmitted via radio frequency, so no charging
plates are needed. This technology is still evolving, so this is something to watch for in the
next few years.
Wireless charging is divided into two parts: internal circuit board and external component.
The production process of wireless charging will also be introduced in detail from these
two sides.
First, our sales and his customers communicate with each other to determine product
design and performance requirements. Next, the technical department of Lantaisi will
design the internal circuit board, and the product department will design the shell
structure.
Step 1: The above picture is a blank board without any electronic components. First, it will
be placed on a fully automatic printing machine and painted with a layer of solder paste.
The solder paste is mixed with solder powder, flux, and other surfactants and thixotropic
agents. It can be seen from the picture that this wireless charger circuit board has more
than 30 components.
Step 2: Then enter the next process: SMT patch. SMT stands for surface mount technology
and is widely used in the electronics industry. It is mainly used for the installation of
electronic components with no leads or short leads.
Step 3: The SMT placement machine installs and fixes the chips, resistors, capacitors,
inductors and other components on the circuit board brushed with solder paste in
order. Each SMT high-speed placement machine will be controlled by a small computer.
Engineers will design and program the pre-set operating procedures according to the
material of each wireless charging circuit board, which greatly improves the placement
accuracy of the circuit board.
Step 4: The picture above shows the reflow soldering operation of the lead-free
environmental protection process. The one on the right is the reflow soldering equipment
with an internal temperature of more than 200 degrees. The PCB substrate after brushing,
patching, and reflow soldering has become a complete PCBA. At this time, the PCBA needs
to be inspected to determine whether the functions of each part are normal.
Step 5: The above picture shows the use of AOI automatic optical detector to inspect PCBA.
Through tens of times of magnification, you can graphically check whether there are any
problems such as false soldering and empty soldering during the chip and resistance-
capacitance placement process.
Step 6: The qualified PCBA board will be sent to the next process-welding the transmitter
coil.
Step 7: Welding the transmitter coil requires manual operation. It can be seen from the
picture that the technician has a blue wristband on his left hand. There is a wire on this
wristband that is grounded to prevent human body static electricity from penetrating the
high-precision chip.
Step 8: Next, check whether the transmitter coil board can work normally. Here, the
working conditions of different input voltages will be tested.
Step 10: Fix the transmitter module on the wireless charger shell with 3M glue.
Step 12: Finished product testing before shipment. This link is used to eliminate the
compatibility of wireless charging, and to ensure that the wireless charging product that
arrives in the user’s hand can have the same performance experience as the original
charger.
Step 13: Put the product in a PE bag, put it in the manual, Type-C data cable, and pack it in a
box, then pack it and wait for shipment.
Over the last few years wireless chargers have gain popularity in the market,
anticipated to grow at a significant CAGR of 18.9% during forecast period (2021-2027).
With the global pandemic over the last few years companies all over the globe have
adapted their work structure to implement working from home to meet government
safety rules and regulations. This has increased the demand for electronic devices for
employees to complete their work and meetings online and for uninterrupted excess of
these devices, the demand for wireless charging has grown.
Google Pixel 5
iPhone 11
iPhone 12
iPhone 12 mini
iPhone 12 Pro Max
iPhone SE 2 (2nd Generation)
Samsung Galaxy S20 FE 5G UW
CONVENIENCE
Connecting to a wireless charger is faster and easier than plugging in cables. Just set your
phone down onto the charger, and it starts charging immediately - no need to free up your
other hand to find and connect a cable. Wireless chargers also protect your phone from
damage caused by repeated connecting and disconnecting and are more robust than
charging cables which may end up showing signs of wear and tear.
STAY CHARGED:
Imagine giving your iPhone or Samsung phone a little battery boosts every time you put it
down. With wireless charging, you can. Wireless chargers come in all shapes and sizes.
With one on your nightstand, on your desk, even in your car, it’s easy to keep even the
hardest working device charged all day.
SPEED
Wireless charging is just as fast as using conventional chargers. A 5-watt charging pad will
charge your smartphone just as quickly as a 5-watt/1 Amp wall charger – which is usually
the kind supplied with your smartphone.
In Medical Fields
Wireless power transfer systems are increasingly used as a means of charging implantable
medical devices. However, the heat or thermal radiation from the wireless power transfer
system can be harmful to biological tissue. In this research, we designed and implemented
a wireless power transfer system-based implantable medical device with low thermal
radiation, achieving 44.5% coil-to-coil efficiency. To suppress thermal radiation from the
transmitting coil during charging, we minimized the ESR value of the transmitting coil. To
increase power transfer efficiency, a ferrite film was applied on the receiving part. Based on
analyses, we fabricated a cardiac monitoring system with dimensions of 17 × 24 × 8
mm3 and implanted it in a rat. We confirmed that the temperature of the wireless charging
device increased by only 2 °C during the 70 min charging, which makes it safe enough to
use as an implantable medical device charging system.
Wireless charging can be sized to deliver 5W or 10W of energy to the battery. It can be
a good solution to charge your battery. It can also charge you battery at a fast rate
depending on the size of the battery pack.
When it comes to energy efficiency, there are significant differences in competing wireless
charging methods.
There are a lot of claims made about the energy efficiency of wireless charging schemes.
Engineers are understandably sceptical. After all, it is hard to envision how two induction
coils sitting some distance away from each other could engage in energy efficient charging.
Fortunately, there is meaningful data available about wireless charging efficiency. It serves
important purposes by helping decision makers assess different standards, and it enables
informed choices regarding the deployment of a given standard. Additionally, efficiency
data helps engineers and product designers determine which user benefits are worth the
“cost” in terms of efficiency.
That said, it is true that there’s limited public data comparing the real-world power-
transfer efficiency of different wireless power standards.
Wireless chargers are essentially power supplies, and power supply engineers generally
assess the quality of a power supply by its efficiency over a load range. Consequently,
wireless charging systems are often characterized by their efficiency at a given load
current. This industry convention results in misleading and inaccurate characterizations of
the performance of a power supply that is designed specifically as a wireless charging
system.
It is possible, however, to specify the efficiency of a wireless charger more accurately by
comparing the total energy used by the battery over a complete charge cycle, to the energy
into the wireless power transmitter over the same charge cycle.
Here are the trade-offs of the various magnetic induction-based wireless charging
approaches. As of the writing of this article, there were no Rezence systems available
in the market. Claims of Rezence benefits are derived from publicly available
marketing materials.
As many customers and experts suggested after reviewing the wireless charging system
that we’ve got no reason to think that wireless charging could be harmful, either to your or
to your electronic devices. The brand Anker, which is a major manufacturer of wireless
chargers, says the following:
“Contrary to popular belief, wireless charging is safe to use. It won’t damage your
smartphone’s battery as it manages the process very carefully. Yes, wireless phone chargers
do emit EMF (electric and magnetic fields) radiation, but the range it emits is quite low. In
their current form, wireless chargers won’t pose a hazard to human health.”
WITH RESPECT TO COMPETITORS
These days there are a vast number of phones that are capable of wireless charging,
including the iPhone 13 series and the Samsung Galaxy S22 series, so providing an
exhaustive list would not be particularly instructive. However it is still regarded as a
premium feature, so you’ll most like find it in flagship smartphones as well as a couple
of mid-range phones, but the technology has not really trickled down to the cheapest
phones on the market just yet. If wireless charging is a key priority for you when you’re
considering buying a phone, then make sure to check whether or not it is compatible.
Beyond smartphones, you’ll also find plenty of other devices that offer this feature,
including headphones, tablets, and wearables to name but a few.
Wireless charging market is expected to experience a boom in electrical vehicles too. In-car
charging and wireless charging of electrical vehicles are the key trends in the automotive
industry. Rise in electrical vehicles manufacturing globally will help in the wireless
charging market growth. Significant investments in R&D are being made by the market
participants, wherein the leading players are focusing on improving the power
transmission range.
Who are the Major Players in Wireless Charging Market?
The Wireless Charging Market is growing at a very fast pace and has seen the focus of many
local and regional vendors offering precise application products for multiple end users. The
three dependencies for the status of major companies in the market are: company profile,
profitable gross margin, the prices they charge. These are the main players in this
market Energizer Holdings, Inc, Fulton Innovation Llc, Renesas Electronics
Corporation (Interated Device Technology, Inc.), Murata Manufacturing Company,
Ltd., Powermat Technologies Ltd, Qualcomm Technologies, Inc, Samsung Electronics
Co., Ltd., Sony Corporation, Texas Instruments Inc, Witricity Corporation,
Powerbyproxi, Idt, Semtech,
Industry News:
March 1, 2022 – WiTricity, the leader and pioneer in wireless charging for electric vehicles
(EVs), today announced it has been named Business of the Year for 2021 by the Electric
Vehicle Association (EVA). EVA recognized WiTricity as a leader in the EV space working to
educate the public on the advantages of EV ownership and the future of autonomous
vehicles.
3 September 2020: Samsung has launched the Wireless Charger Trio that will be able to
charge three devices at the same time. Wireless Charger Trio is a brand-new wireless
charging solution that had been designed to charge compatible devices all at once, offering
everyday convenience and ease. The wireless charging pad will be big enough to place a
Samsung Galaxy Note 20 Ultra, Samsung Galaxy Watch 3, and the Samsung Galaxy Buds
Live and charge them up at the same time.
What are the major Applications, Types and Regions for Wireless Charging Market?
By Type, it is segmented into:
Consumer Electronics
Vehicles & Transport
Medical Devices & Equipment
Other
o North America
o US
o Canada
o Europe
o Germany
o France
o UK
o Italy
o Spain
o Rest of Europe
o Asia-Pacific
o Japan
o India
o Australia
o South Korea
o Rest of Asia-Pacific
o Rest of the World
o Middle East & Africa
o Latin America
The Wireless Charging Market describes the factors driving the global growth
opportunities in upcoming years and highlights market channels. In addition, the report
analyses market size and share, trends, by geographic region, end-use type and segment. It
focuses extensively on revealing a detailed regional analysis. The Global Wireless Charging
Market report also conducted a PESTEL analysis of the industry to study the main
influencing factors and entry barriers of the industry.
FEASIBILITY ANALYSIS
Feasibility analysis, also known as Feasibility Study, intends to examine the pros and cons
of an existing equitably and logically or a proposed business, dangers related to the
venture, required resources to carry out the operations, and eventually the probability of
success.
A Feasibility Study of Wireless Charging by Chisanga Mkasanga. This paper analyses the
concept of wireless power transmission for mobile charging via three major methodologies
of radioactive wave, coupled magnetic resonance, and induction resonance both
electromagnetic and NFC-enabled.
COUPLED MAGNETIC RESONANCE
This section proposes wireless power transmission to charging and tuning on electrical
devices without the necessary power unit but through invisible line of electric field namely
magnetic field via a coupled magnetic resonances approach. This approach analyses the
influence of transmission distance, d, receiving load resistance, R and duty cycle D onof the
pulse drive signal as well as other related parameters on the efficiency of wireless power
transmission.
The idea behind the coupled magnetic resonances is to create strong coupling between
objects i.e., two circular hollow coils tightly wound, at the same resonant frequency so as to
transmit energy efficiently. Electromagnetic field energy flows constantly between the
emitting and absorbing circuit components and the surrounding space thus making the
system a non- radioactive magnetic coupling.
The model has a couple of emitting and receiving resonant coil loops, LC. The emitting LC
rapidly radiates electromagnetic wave which is received by the receiving LC.
Figure 1. The emitter and receiver resonant coil diagram (Wang and Li, 2011)
There are four different resonance coupling states according to the resonances of the
emitting and receiving coil loops. Therefore a resonant coupling state is as a result of either
both the emitting and receiving coil loops to be resonant, both not to be resonant and one
of both to be resonant while the other is not. However, the impedance value is minimum,
and the flow of current is greatest when the emitting and receiving coils are resonant thus
producing a better power and efficient transmission.
According to Wang and Li (2011), to ensure the full resonance state of a coupling system, it
is necessary that both the emitting and receiving coil parameters be similar in design and
have the mutual inductance between them as:
4
Mπ μ0 r
2
2δ
INDUCTIVE COUPLING FOR WIRELESS CHARGING
Transferring power through Infrared technology needs direct line of sight between
transmitter and receiver and this transmission could be deflected or interfered with.
Transferring large amount of power using laser is however dangerous. Radio Frequency
(RF) power transfer is only able to transfer very small amount of power to the receiving
end, due to the limitation of the power on the transmitter side (Olvitz et al, 2012)
Inductive coupling does not hear any of these limitations and can transfer power wirelessly
and safely (Olvitz et al., 2012). Inductive coupling is used in RFID (Radio Frequency
Identification) systems for contactless smart cards and other purposes, in the fields of
sensors, wirelessly charging electronic devices. in car industry, for example, wirelessly
measure tire pressure using sensor and in-car computer is realised recently, and many
more other applications (Philippe Basset et al., 2007).
Low power applications are generally supportive of small consumer electronic devices
such as cell phones, handheld devices, some computers, and similar devices which
normally charge at power levels below 100 watts. Typically, the AC utility frequency of
50 or 60 Hertz is used.
High power inductive charging generally refers to inductive charging of batteries at
power levels above 1 kilowatt. The most prominent application area for high power
inductive charging is in support of electric vehicles, where inductive charging provides
an automated and cordless alternative to plug-in charging. Power levels of these devices
can range from approximately 1 kilowatt to 300 kilowatts or higher. All high-power
inductive charging systems use resonated primary and secondary coils. These systems
work in the long wave range with frequencies up to 130 kHz. The use of short-
wave frequencies can enhance the system's efficiency and size but would eventually
transmit the signal worldwide. High powers raise the concern of electromagnetic
compatibility and radio frequency interference.
In Electronic Area-
Many manufacturers of smartphones have started adding this technology into their
devices, the majority adopting the Qi wireless charging standard. Major manufacturers
such as Apple and Samsung produce many models of their phones in high volume with Qi
capabilities. The popularity of the Qi standard has driven other manufacturers to adopt this
as their own standard. Smartphones have become the driving force of this technology
entering consumers’ homes, where many household technologies have been developed to
utilize this technology.
Samsung and other companies have begun exploring the idea of "surface charging",
building an inductive charging station into an entire surface such as a desk or
table. Contrarily, Apple and Anker are pushing a dock-based charging platform. This
includes charging pads and disks that have a much smaller footprint. These are geared for
consumers who wish to have smaller chargers that would be located in common areas and
blend in with the current décor of their home. Due to the adoption of the Qi standard of
wireless charging, any of these chargers will work with any phone as long as it is Qi
capable.
Another development is reverse wireless charging, which allows a mobile phone to
wirelessly discharge its own battery into another device.
In Transportation Area-
Electric vehicle wireless power transfer or wireless charging is generally divided into three
categories: stationary charging when the vehicle is parked for an extended period of time;
dynamic charging when the vehicle is driven on roads or highways; and quasi-dynamic or
semi-dynamic charging, when the vehicle moves at low speeds between stops, for example
when a taxi slowly drives at a taxi rank. Inductive charging is not considered a mature
dynamic charging technology as it delivers the least power of the three electric road
technologies, its receivers lose 20%-25% of the supplied power when installed on trucks,
and its health effects have yet to be documented, according to a French government
working group on electric roads.
TYPES OF FEASIBILITY:
The five criteria listed below receive the most attention in the financial feasibility study.
The Economic Feasibility Study is its most important component among them, although the
Legal Feasibility Study is not generally regarded as a feasibility study.
Technical Feasibility
Technical Feasibility study of a project analyses and evaluates its present resources,
including equipment, programming, and necessary innovation. This technical feasibility
analysis provides information about whether the technologies and resources needed to
build the project are available. Additionally, a feasibility study examines the engineering
team's expertise, the viability of using open systems, the ease of maintaining and
upgrading the technology of choice, and other factors.
Operational Feasibility
Operational Feasibility study examines how well a product will satisfy needs and how
simply it will be used and maintained after implementation. Along with this, additional
operational responsibilities include evaluating the product's usefulness and the
suitability of an application development team's offered to fix.
Economic Feasibility
The economic market feasibility study examines the project's expense and value. This
implies that a thorough analysis is done to determine the program's development costs,
including the cost of the design process and operating costs. After that, it is determined if
the venture will be profitable.
Legal Feasibility
A scheduling feasibility study's primary focus is the project proposal's schedules and due
dates. This assessment involves how long it will take team members to finish the project,
which significantly affects the company as the program's intended outcome may not be
achieved if it cannot be completed on time.
The name is an acronym for the four components the technique examines:
For example, let’s say you’re considering opening a new Tech Company.
During the financial feasibility study, you’ll need to examine the costs of opening the
restaurant, such as the cost of equipment, rent, and staff, as well as projected revenue from
sales. You’ll also need to consider any potential risks, such as changes in consumer tastes or
a downturn in the economy. By evaluating all these factors, you’ll be able to determine if
opening the restaurant is a financially viable option.
The importance of a financial feasibility study cannot be overstated, especially any entity
that is planning to undertake a project, investment or venture. This type of study is a
comprehensive examination of a proposed project’s potential financial performance,
including an analysis of costs and revenue. Additionally, the study would take into account
factors such as the size of the market, competition, and pricing strategy to estimate the
potential revenue.
A financial feasibility study helps to identify potential financial risks and challenges
associated with a proposed project, investment or venture, allowing decision-makers to
take necessary measures to mitigate or avoid these risks before they become a problem,
ensuring the success of the project
2. Assessing profit potential
A financial feasibility study helps to determine the financial viability and profitability of a
proposed project, investment or venture, by analysing the costs, revenue potential, and
overall financial performance. This information can help to make informed business
decisions that can maximize returns and increase profitability.
3. Roadmap to success
A financial feasibility study provides a detailed financial plan and budget for a proposed
project, investment or venture, which can be used as a roadmap to guide its development
and implementation, ensuring that resources are allocated effectively and efficiently,
leading to the success of the project.
Financial institutions and investors often require a financial feasibility study as part of the
funding application process. A well-conducted financial feasibility study can increase the
chances of obtaining funding for a proposed project, investment or venture, unlocking new
opportunities for growth and expansion.
By conducting a financial feasibility study, you’ll be able to determine whether your
venture has what it takes to succeed. It’s a crucial tool for decision-makers, such as
investors, entrepreneurs, and business owners, as it allows them to understand the
financial implications of proceeding with a project.
1. Project Costs:
Estimation of total costs
In order to accurately project the costs of the project, the study should include all one-time
and ongoing expenses such as equipment, materials, labor, and other miscellaneous expenses.
Additionally, contingencies or unexpected costs that may arise during the project should be
identified and budgeted for in the cost estimation.
Consideration of contingencies and unexpected costs
Contingencies are unforeseen events that may occur during the course of the project, such as
unanticipated delays, cost overruns, or changes in project scope. Unexpected costs are
expenses that have not been included in the original project budget, but may arise during the
project such as repairs, maintenance, or additional services required to complete the project.
The financial feasibility study should consider these costs and include a contingency budget
to ensure that the project has enough financial resources to cover any unexpected or
additional expenses that may occur.
2. Project Revenues
Estimation of projected revenues
The financial feasibility study should estimate the projected revenues that the project is
expected to generate. The study should also consider the potential market size, competition,
pricing strategies, and any other factors that may affect the project’s revenue potential.
3. Determine Profitability
Calculation of key financial metrics (NPV, IRR, payback period)
The financial feasibility study should calculate key financial metrics such as the net present
value (NPV), internal rate of return (IRR), and payback period (PP) to determine the
profitability of the project
Net Present Value (NPV) is a measure of the net value of an investment, taking into
account the time value of money. A positive NPV indicates that the investment is
expected to generate more value than it costs.
Internal Rate of Return (IRR) is the rate of return at which the NPV of an investment
is zero. A higher IRR indicates a more profitable investment.
Payback Period (PP) is the amount of time it takes for an investment to generate
enough cash flow to recover its initial cost. A shorter payback period indicates a more
attractive investment.
Analysis of profitability
Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PP) are three
important financial metrics that are used to assess the profitability of a project.
NPV helps to determine whether the project is expected to generate more value than it
costs,
IRR is an indicator of how profitable the project is by measuring the rate of return, and
PP measures how quickly the initial investment will be recovered.
Together, these metrics provide a comprehensive picture of the project’s profitability and
help to make informed decisions about whether to proceed with the project or not.
Overall, the feasibility study components in the financial aspect provide a comprehensive
and accurate assessment of the economic viability of the proposed project or investment.
Difference between a feasibility study and a financial model
While both financial feasibility study and financial model are important tools used in the
planning and evaluation of projects and businesses, they serve distinct purposes and
provide different types of information. This table compares and contrasts the key
differences between a feasibility study and a financial model.
ENVIRONMENTAL FEASSIBILITY
AR eme
dial
An initial RI done following the listing of a contaminated site in a remedial program may
lead to further questions rather than a straightforward answer on what remedy to use. An
FS is performed along with an RI, and the two may be done concurrently. The RI is
completed to gather and analyse data to determine the nature and extent of the
contamination detected on site. The information collected during the RI is then used in an
FS, where remedial options are evaluated. Additional RI or testing of remedial options may
be necessary to get further information for consideration of particular remedies.
It is important to evaluate not only what has already been impacted by contamination at
the site, but also the pathways for the contamination to reach future potential receptors,
including humans (by inhalation, direct contact, ingestion, etc.), particularly sensitive
receptors. This could mean issues, such as contaminants in groundwater that could impact
potable water supplies, direct exposure in soil if someone was to dig in an unsealed area, or
potential contaminant inhalation risks within buildings lying over contaminants.
Additionally, the overall environment, including both plants and animals, must be
considered. Potential consequences to implementing a particular remedy itself should also
be evaluated. For example, could a selected remedy’s construction operations result in
impacts to wildlife or environmental habitats, where one solution causes other issues that
could also be costly and again a responsible party’s obligation to manage?
Products liability law consists of a mixture of tort law and contract law. Aspects of this area
of law related to tort include strict liability, negligence, and deceit. Aspects that relate to
contract law relate mostly to the laws governing warranties.
MARKET FEASIBILITY
Market feasibility is highly important for the companies who are planning to start a
business. It helps the entrepreneurs to identify their target market, analyse the market
opportunity and the unmet customer needs in the particular market segment.
Market feasibility studies are different from the marketing plan. Feasibility studies are
usually conducted based on ideas, products. Campaigns, processes, businesses, and trends
in the market. Feasibility studies are done based on how things are happening in the
current market, how the market will respond to the product, and the potential advantages
and problems that may arise.
Feasibility tests are not just reports that are made to sell the business idea to the investors
but those are tools that will help to assess the business potential which will consider both
advantages and disadvantages in the business implementation in the particular market.
A marketing plan emphasizes the specific strategies, data, estimations, and campaigns that
are planning to be implemented. Compared to a marketing plan, the feasibility studies can
be identified as a logical study that identifies the practicability of a market plan or a
proposal.
When implementing a feasibility study, the marketing managers should determine the
availability of enough financial and other resources, people, and relevant technology
available to access the potential market. Apart from that, the return on investment, the
financial benefit to the company, and the benefits to society should be assessed as a part of
the market feasibility study.
In certain instances, the feasibility study may include the changes in operating the business
such as an acquisition of a competitor or changing the production processes. As a result of
these operation changes, the cash flow of the business also can be changed. Assessing the
risk factor is more important in situations like these.
Importance of conducting a market feasibility study
Any entrepreneur who is planning to start a new business, or an investor who is planning
to invest in a new business takes a huge risk. The risk of not being successful in the selected
market or not being successful in the selected product category can create a huge impact on
the entrepreneur as well as the investor.
Through logical tools, feasibility studies can identify whether the particular product has a
possibility of being successful in the selected market segment. It provides the advantages
and disadvantages in entering a particular market and allows the
entrepreneur/ investor or the marketing team to make an informed decision. This reduces
the risk of financial losses as well as reputational damages.
As mentioned above, feasibility studies reveal both pros and cons of entering the selected
target market. It is advantageous for the business to foresee the pros of entering the
market and take maximum advantage of that and identify the cons and take necessary
actions to eliminate or minimize the disadvantages that can happen in the future.
In addition, the market feasibility studies help the business to identify the best market
segment that the marketing department should focus on. It also helps to determine the
market share that can be achieved through entering the particular market. Overall, the
feasibility study provides a better perspective about the target market of the product and
helps the business to enter the market with more understanding and knowledge.
Give a brief description (one or two paragraphs) of the industry your business is in,
according to the U.S. Department of Labor. Determining your industry is essential for
receiving government contracts, attracting investors, and for receiving grants if you form a
non-profit.
For example, Fictitious Business Example (FBE) is being established to produce and
provide quality industrial first aid kits to the U.S. Government and both private and public
companies to improve worker safety on the job. FBE's services are classified under the U.S.
Department of Labor Standard Industrial Classification (SIC) as SIC Code 5047 and
classified as being in the "Medical, Dental, and Hospital Equipment and Supplies"
industry. Your company's SIC can be found on OSHA's SIC search tool.
This section of a market feasibility study describes the current market for your product or
service. If you are offering something so unique that there are few market statistics, you
can either use related industry information or conduct your own independent study.
Several ways to conduct your research for new ideas include polling internet forums,
sending out questionnaires addressed to targeted consumer groups or the general
population, and even customer surveys.
Any solid evidence you have that there is a demand (or market) for your product or
services will help you sell your idea. It is particularly important if you are marketing
something unique or within a small, specialized market.
A good source for finding out what is selling (and what is not) is the Department of Labor.
Industries showing employee growth is often a good indicator of an industry's overall
stability, and massive layoffs indicate fewer business opportunities. Where there is a
demand for something, there should be correlating employment growth, the number of
new companies being formed, or in the industry's overall combined revenue.
Competition
If you are planning only to serve a local market, start by identifying every competitor
within a 50-mile radius. List each competitor by location and distance from you, as well as
their distances from each other. You should closely examine all competing businesses that
are within 15 miles of your location. Consider their locations, business hours, and how long
they have been in business. These things can help you determine how hard it will be to
establish a similar business in the same geographic area.
You should also make a note of any similar businesses in your area that have recently gone
out of business. There may be a reason such as poor location, high taxes, operating
restrictions, or not enough demand for the product or service in that area to sustain a
business. Researching local competitor information can tell you two things: what works
now and what has not worked for other businesses.
If you are planning to sell your products or services on a larger scale through franchise
development or internet sales, you need to look beyond the local competition. To find
smaller competition, use a search engine to find businesses by keywords related to your
industry. The return will show you companies selling similar products that are ranking
high in search engine results and possibly getting more business.
Visit their websites to see what they are selling and what they are not selling.
Anticipated Future Market Potential
It is critical in this section that your projections are fact-based as much as possible. Every
business takes risks; the key is to minimize those risks by carefully studying already
successful companies. Rather than targeting the entire industry, try to isolate similar
businesses and study what they are doing, how they are doing it, and their financial track
record.
You can obtain a lot of information by visiting company websites and looking over product
lines. Look for discontinued products or services and high-priced items. Somewhere in
between these two things are probably the most stable long-term items. Discontinued
means consumers no longer demand the product, while high-priced items may indicate a
fad.
Since big companies spend big bucks on market research, take advantage of their money
spent and public information. For example, if you are trying to crack the pet market, look at
PetSmart and Petco. Examine the new product lines or services they are offering; chances
are good that they spent millions researching industry trends to develop new product
ideas.
Look for press releases about businesses in your industry. Press releases are an
advertisement, but they also often tell why a company is branching out, closing a division,
or changing its product line. They have already done the research for you, so do not
hesitate to take clues from other businesses.
Sales Projections
Sales projections can be a challenge for any new business owner because there is little or
no track record to support how fast you will grow or what products or services will sell
best. Sales projections should factor in how much time and money will be invested in the
business and the markets you will be targeting.
That's why it is important that you write a market feasibility study first. Your market study
will help you decide where to sell your product or services and what products and services
are most likely to generate the most revenue.
If you have an internet-based business, you should estimate the total traffic (number of
visitors) to your website each month, project anticipated site traffic volume over time, use
traffic projections to estimate the average number of sales per every 10,000 visits to your
site, and calculate the average amount of each sale.
The more traffic you can drive to your site, the more opportunities you have for making a
sale—and it helps to have good search engine optimization (SEO) skills. This is important
for all internet businesses because, as your site becomes more popular, you can project an
increase in sales. A good rule of thumb is to summarize sales projections in the content but
attach a spreadsheet showing actual numbers based on sales projections.
Depending on the nature of your business, it may not be possible to associate specific
amounts of revenue with a particular market, but you can at least try to estimate the
percentage of total revenue expected from each source. For example, if you plan to sell
products to five specialty stores, list each store you plan to sell to, and total overall revenue
for the specialty stores, rather than an amount for each individual store.
A marketing plan maps out specific ideas, strategies, and campaigns based on feasibility
study investigations, and is intended to be implemented. Think of market feasibility studies
as a logistical study, and a marketing plan as a specific, planned course of action to take.
Frequently Asked Questions (FAQs)
TECHNICAL FEASIBILITY:
Follow these steps to help you plan a technical feasibility study for your business project:
The initial analysis (also known as preliminary analysis) helps decide whether the project
is worth undertaking from an economic and time perspective. A project is required to give
financial returns and conclude within a reasonable timeframe to make it feasible. The two
main areas of preliminary analysis include:
Project outline
Start by describing the project using the available details. The outline lists all the critical
elements like the target market, the expected goals and outcomes. It also analyses whether
there are any available products or services in the market that meet these goals and how
the current project offers features or benefits that are better and more efficient.
Technical and equipment accessibility
Evaluate if there are any barriers or factors that hinder profitability. Challenges in
accessing raw material, expensive capital, production costs that go over the projected
revenues and lack of the right technology are some of the critical factors that hinder project
profitability. If the preliminary analysis results show optimistic returns, you can proceed to
the next step.
Work with the preliminary study results to predict the expected income that the product or
service is likely to generate when sold in the target market. Then calculate the overall cost
of development. This includes the expenses for manufacturing the product, along with
paying any debts taken for production and continuing regular business operations. If the
projected income is more than the overall cost of production, then you can proceed to the
next step of the feasibility study.
3. Do a market survey
A market survey helps determine the realistic revenues the project is likely to earn. The
market study has to be in-depth and includes various steps like:
Identifying the right market: It involves analysing the demographic factors, the
average disposable income of the target market, cultural aspects of the audience and
how these factors determine the success of the product/service.
Comparing similar offerings: Identify the pros and cons of each product on your
list. Compare pricing, quality, customer feedback, marketing strategies, and more to
decide if your product/service addresses a specific need that is missing in the
market.
Estimating the scope of expansion: Determine if the market offers expansion
opportunities for launching new products or services down the line. See if there is
an opportunity to expand to nearby markets based on the feedback from the survey
respondents.
Based on the market survey results, you can decide whether the project is feasible to
generate the predicted revenues. If the survey results are positive, you can move on to the
next step of the feasibility study.
A business plan explains the project in detail. It outlines the raw material requirements and
the planned product launch schedule and has a step-by-step plan on the expected costs at
each step of the project and how to manage them. The critical elements of the business plan
include:
Executive summary
Organisational chart
Materials, supplies and equipment.
SWOT analysis
Labour costs
Facility costs
Overheads, including utilities, taxes, and insurance.
Marketing and merchandising costs
The day-one project balance sheet lists the liabilities and assets of the project on launch
day before it starts generating revenue. Make sure to include the following:
Assets like the project's initial capital investment, land, building and equipment.
Liabilities like rent, loan repayments and margins for receivables
In this step, you compare the data you compiled in the previous steps to determine if the
project is still feasible. The review provides a clear picture of the overall risks and costs. It
helps decide whether it is technically feasible to commence work on the project. Here are
three questions to ask during the final review stage:
Does the feasibility study determine whether the project guarantees the minimum
expected ROI?
Do the potential rewards (income, market share, scope of growth) outbalance the risks
(monetary investment, energy, time)?
Does this project have growth potential?
If the answer is 'yes' to all three questions, you can arrive at the conclusion that the project
is technically feasible and economically justifiable.
SCHEDULE FEASIBILITY:
Schedule feasibility is a measure of how reasonable the project timetable is. Some
projects are initiated with specific deadlines. It is necessary to determine whether the
deadlines are mandatory or desirable. To do proper scheduling, the versatile techniques
like PERT & CPM are adopted.
If the project managers want to see their projects completed before they can lose their
utility, they (project managers) need to give proper attention to controlling their schedule
feasibility: to calculate and continually re-examine whether it is possible to complete all
amount and scope of work lying ahead, utilizing the given number of resources, within
required period of time. Schedule feasibility study includes use of the following matters:
Project Estimation.
Gantt and PERT charts.
CPM (Critical Path Method).
Change Management.
CONCLUSION:
Wireless charging is convenient and fairly efficient, but there has not been enough research
done to increase efficiency and distance necessary between the device and charger.
Currently, electric toothbrushes and cellular phones need to be in contact with the
charger's surface. This makes it easier to charge and saves a few seconds fiddling with
cords, but the device is still essentially plugged in and immobile where as having a longer
cord would allow use and charging at the same time. The future for wireless charging will
include longer ranges between the device and charging mechanism as well as a higher
efficiency over a longer distance. At some point, it could be possible to charge multiple
devices efficiently and safely from another room of a building solving the issue of battery
life.
Many people see the huge benefits offered by resonant inductive coupling. There are
medical patients who can be helped with this technology. In addition, wireless power could
help reduce the damage our power infrastructure causes to the environment. Also, risks
involved with traditional wires become irrelevant. Another benefit is the incredible
convenience posed by having all your electronics powered and charged without wires to
annoy you or constrict your movement. Other people however have their doubts. There are
many companies who manufacture the electronic parts that would be replaced with
inductive resonance technology. Also some researchers have doubts that it is safe to have
the magnetic fields used in the resonant inductive coupling flowing through our bodies.
Another large downside is the difficulty and large cost of setting up and implementing the
wireless power system as most currently manufactured consumer electronics do not
contain the necessary parts.
The disadvantages of wireless power are greatly outweighed by the benefits and from an
ethical standpoint, thus it is necessary to further develop wireless power technology to the
point of large-scale production. We have the means and design; it is now a matter of
obligation to create wireless power on mass scales for the betterment of society.