CIMA E2 Syllabus C. Managing projects - Project Initiation - Feasibility - Notes ^{2 / 5}

1. Setting out project objectives - Projects are initiated when a need or objective is identified, the project becomes the strategy to achieve this objective.

2. Identifying and forming project proposals. It is at the initiation stage that an organisation considers a number of potential projects and selects the most worthwhile projects to undertake.

3. Setting project requirements

4. Project initiation document(PID)

The scope of a project is also determined at the initiation stage. 

Scope can be defined as the extent of work needed to produce the project’s deliverables.

Implementing new ideas that are not within the original scope of the project is known as scope creep. Clearly defining, planning and controlling the scope and setting objectives at the start of the project ensures what the project boundaries and objectives are, and this should help focus planning and project control within overall budgets.

Two of the main activities of the initiation stage are risk assessment and feasibility study.

A Feasibility study is the process of assessing how achievable various project options are. It is
undertaken at the 'Identification of a need' phase in the project lifecycle.

1. Technical feasibility - This type of feasibility basically means 'Can the project be done?'. It investigates whether project requirements can be met using available material, processes, etc. For example, Are the manufacturing processes and equipment available?

2. Social feasibility - This is concerned with 'Does the project fit with current operations?' An example could be, how much disruption will the building of the plant cause? Or, what is the likelihood of the local community objecting to the project? Or, will the staff be willing to commute to a new location?

3. Ecological feasibility - This is concerned with 'How will the project affect the environment?' An example of this could be, how will waste products be disposed of safely? Or, what pollution could be caused by the project?

4. Financial (economic) feasibility - The question asked here is 'Is the project worth it?' Cost benefit analysis is used here to evaluate different projects. For example, what is included in the costs of the project?