Cost and Value Management in Projects, 2nd Edition

Chapter 2Project Needs Assessment, Concept Development, and Planning

Learning Objectives

After studying this chapter, you should be able to:

• Identify project needs to evaluate the expected cost and value.
• Develop project scope based on conceptualization of the project.
• Describe how to strategically select, prioritize, and resource projects.
• Evaluate project feasibility in terms of resources, funding, and facilities.
• Outline the project planning process based on identified resources.
• Configure a work breakdown structure (WBS) based on scope and plan.

The nature and type of projects vary across different industries and business sectors. While the projects may not look the same, they certainly have common distinguishable elements that enable us to characterize them as projects. For instance, projects are unique ventures that are time-limited and resource-constrained. In deciding to launch a project, the parent organization must make a critical business decision rooted in the project's potential contribution to the strategic goals of that organization. Clearly, if the project fails to provide value, then it does not contribute toward achieving the strategic goals of the organization, with little chance of project success—or even project survival. The congruence between corporate strategy and project strategy is therefore a vital feature of project viability, and the value contributed by a project to the parent entity needs to be clear, measurable, and sustainable from the outset ...