Project Conceptualisation and Feasibility Study

As part of the feasibility study, it is important to make the right choice, especially where future investments are crucial for the long-term survival of the company. Project selection should be based on both numeric as well as non-numeric, meaning that not only the financial viability should be the only factor considered, but also the following examples:

• Will this project enable the company to enter new markets?
• Will the project enable the company to gain market share?
• Will the project require new equipment? Can the company afford the new equipment?
• Is the project consistent with current business?
• Will the project use under-utilised workforce?
• Will the project improve customer service?
• Can the project be managed with existing personnel?
• Will the project impact workforce safety?

Projects are the result of conceived ideas, either internal or external to the organisation. Internally, a management decision may be the start of a project; an individual may recognise an opportunity to change something for the better; or a particular problem may arise which will fuel the necessity of a project. Externally, an idea by a potential customer may result in a request for proposal (RFP) or a request for quotation (RFQ), often in the form of an invitation to tender. Regardless of how the idea or opportunity was generated, the organisation often needs to scrutinize multiple possibilities and then decide whether funding and resources are available to realistically turn the idea into an active project. Project selection is thus a vital activity to ensure that the organisation does not over-commit resources and fail to deliver desired results.