From Concept to Project Approval

Abstract

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 on to 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;

• Prefeasibility analysis of development options, leading to a proposal at the preliminary approval stage;

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

Ideas are two a penny.

Bill Gates