From Concept to Project Approval

Abstract

Aim: The aim of this chapter is to describe the asset development process from concept to project approval. This chapter shows how asset management works with other parts of the organization in order to create sound development plans. The focus is on procedures for larger scale developments, such as major acquisitions. The chapter starts at the concept level, goes through the preliminary approval stage, to feasibility planning and onto final project approval.

Outcomes: After reading this chapter you will know about

• The stages involved in asset development,

• The structure and role of development planning teams,

• The concept of capability, with examples,

• The identification of business needs,

• The concept of capability gap analysis, the development of a capability requirements statement and an operational concept,

• Pre-feasibility analysis of development options, leading to a proposal at the preliminary approval stage,

• Feasibility analysis and the creation of an acquisition or development plan.

Topics:

• Business development planning

• Capital project initiation

• Types of acquisition or development

• The business development group

• Major and minor projects and development flexibility

• Delegation of financial authority

• Capability concept

• Development planning teams

• Demand analysis and forecasting

• Needs analysis

• Remaining life and retirement schedule

• Capability gap analysis

• The capability requirements statement

• Value engineering

• Pre-feasibility analysis

• Feasibility analysis

• Development plan topics

• Stakeholders

• Existing process and the status quo

• Lead time activities

• Operational concept

• Function and performance specification

• Level of service

• Financial analysis

• Acquisition strategy

• Project maturity measures.

Ideas are two a penny

Bill Gates.