FACILITY NEEDS ASSESSMENT AND FEASIBILITY STUDIES
Danix Management Limited is often requested to make input to public sector projects that have two central questions: what is the long term need for facilities and, given the organization's funding structure, how feasible is the building program required to meet the identified needs.
The key to answering the first question (relating to needs) is to settle on an acceptable growth projection and then translate this to facility needs. Benchmarking, market share allocation, and user trend analyses are typical tools employed as part of this translation process.
To answer the second question (that of feasibility), three things are required: a projection of future costs to meet the building program that satisfies identified needs, a projection of future revenue streams, and the list of key variables that can be used to drive sensitivity testing. Sensitivity testing tells the organization how vulnerable it is to changes in their cost or revenue assumptions.
Although there is typically considerable background math required to get to a conclusion, what senior managers need to know at the end of the process is they can move forward with confidence in the investment plan they are proposing.