1. Opportunity identification
• Someone has a bright idea, and an initial assessment is made.
• Define general scope
• A business case is completed identifying why a business capability is necessary and what business benefits can be expected by implementing this project.
• It is possible that a pre-feasibility study may be necessary before further funds can be committed.
• The development phase begins when the project has been formally approved.
• Assignment of project team
a) Team leader
b) Finance and Procurement
c) Project management
• Option appraisal and modeling
The appraisal stage should include a comprehensive feasibility study that clearly identifies all the development options and the one that is the most attractive
The appraisal will probably include:
- Definition of the project objective and scope
- Definition of the project structure
- Development of the business case
- Identification of the funding options
- Risk analysis
- The feasibility study
- Life-cycle cost analysis (LCCA)
At the end of this stage an interim go / no-go decision will need to be made.
This stage may include:
- Putting the funds in place
- Undertaking the concept design
- Obtaining all the consents and licenses
- Preparation of a project plan
- Preparation of a risk mitigation plan
At the end of this stage a final go / no-go decision will have to be made.
This stage will include:
- Construction Plans and Specifications
- Bid and Proposal Process
- Procurement and Construction
- Commissioning and Acceptance of Facility
5. Operations & Maintenance
This involves operating and maintaining the asset.
It is important to implement BMS or CMMS tools for efficient management of facility and assets.
The end of the investment life-cycle that may be determined by:
- End of the licenses or consent
- Uneconomic operation