Designing the Project

NotesQuiz

A project needs a business case

Building a business case:

  • To obtain funding

  • To compete with other projects

  • To improve planning

  • To improve project Management


Contents of a Business Case

Heading Content
Introduction Sets the scene and explains reasons behind the project
Executive Summary The key considerations; The options considered; Reasons behind the choice made and the key numbers
Current Situation Strategic and operational assessment including a SWOT analysis
Options Assessment of each and reasons why not chosen
Cost / benefit analysis Detail in the appendices; tangible and intangible (customer satisfaction etc) items; Appraisal techniques numbers also
Impact Impact on the cultural web
Risk Identification and management of each risk Contingency planning
Recommendations Justification for the chosen path
Appendices Detailed cost/benefits and appraisal technique numbers


Cost / Benefits of a Project

Project Costs

Investment Cost - Include IT costs and project specific assets   
Development Costs - Include potential future development costs (as an estimate)
Centrally allocated costs - For use of premises and services (personnel, accounting etc)
External Consultancy costs
Resource costs - for ongoing (incremental) staffing costs and material costs
Quality costs - Training, reworking, monitoring
Flexibility costs - IT equipment for home use; lower batch sizes etc
Disruption costs - loss of productivity during changeover

Project Benefits

Some benefits are more worthy than others - here’s the scale

  1. Financial (cost reductions / revenue increases)

  2. Quantifiable (now and forecastable before the project)

  3. Measurable (now but not forecastable until after the project)

  4. Observable (e.g. Improvements in morale)

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