Project conception is the first step in the process of specifying the actual scope of a project. The project conception normally begins when a requirement or an opportunity is manifested that will benefit the corporate interests and culminates when one or more prelude options have been developed which will satisfy the originally presented expectations of the company theoretically.
Stages of Project Conception
There are various degrees of complexity in the initial conceptualization of a project, which depend on the nature of the particular project and specific analysis & procedures employed by the company.
Formulations of programs are required for the planning strategy of the company that includes many projects. Conception of the individual particular projects is preceded by the conception of the entire program.
Following activities are involved in the conceptual stage
- Specification of an opportunity or requirement that governs the interests of the company.
- Development of a group of preliminary alternatives that have the capacity to accomplish the initial requirement
- Choosing of alternative(s) that can fulfill the requirements in terms & conditions favorable to the company.
Following is the brief detail of each of these activities in particular situation and in an organized environment.
Specification of Requirement or Opportunity
The main forces for capital investments for industrial companies are the continuity of efficient operations and the opening of the new business areas. Operational analysis of current performance and anticipating of the probable future scenarios identify the investment opportunities.
At start there is probably unclear scope for any new investment. The consideration of all available relevant facts, needed resources & constraints connected with the original idea is involved in the subsequent definition.
Preliminary Formulation of the Alternatives
Alternatives are developed which are capable of satisfying the expressed objectives as the project conception continues. The pace of the subsequent definition and the elaboration of the project scope are set by the preliminary formulation of alternatives. The experience and creativity of the technicians, manager and director is called by the company during this phase to produce sufficient group of alternatives to satisfy the expressed need.
Initial Selection of Alternatives
After the identification of alternatives, comparative analyses are made in order to reject the least attractive and to select the most beneficial. The basic feasibility analysis for every alternative is employed in the selection process that establishes the criteria through which most attractive options can be identified. Further consideration of the rejected alternative is closed down at this point along with requirement to set elaborate definition for them.
The profitability, cost, schedule and other important advantages and disadvantages of every chosen alternative are evaluated in terms of order of magnitude. Without developing concise project parameters, difference among the options is sought.