Project Development: Stages, Processes, and Feasibility
What is a Project?
General Definition: A project is a design or purpose, a thought-out plan to achieve something.
Technical Definition: A project is a set of documents, calculations, and drawings that provide a comprehensive idea of what needs to be done and the estimated cost of a specific endeavor.
Project Stages
- Inception: This stage involves conceptualization, defining the project’s value proposition, assessing opportunity costs, and determining pre-feasibility.
- Execution: This stage encompasses market research, technical analysis, financial planning, legal considerations, and administrative tasks.
- Operation: This stage involves the execution of the plans developed in the previous stage.
- Completion: This is the natural conclusion of the project’s term, where the project is finished, and results are expected. The effect is acquired because there is no further need for study and evaluation.
Project Management Processes
- Design Stage:
- Analysis of the idea
- Project description
- Assessment of the project’s desirability
- Negotiation Stage:
- Securing support from operators
- Coordination of stakeholders and institutions involved in the project (e.g., government, banks, financial institutions, private entities)
- Implementation Stage:
- Materializing investments (e.g., acquiring long-term fixed assets)
- Allocating resources (e.g., finances, labor)
- Meeting project objectives
Project Operators
The successful development of a project relies on the collaborative efforts of:
- Investors: Individuals or entities who assume risks and provide funding.
- Sponsors: Individuals or entities who generate ideas, conduct analyses, and seek investors.
- Technicians: Professionals such as engineers and other specialists who contribute their expertise.
Preparation and Submission of a Project
The preparation and submission of a project involve a coherent and logical sequence that outlines the project’s general aspects while maintaining flexibility to adapt to its specific characteristics.
- Preparation: This refers to the process of developing the project study.
- Presentation: This refers to how the project information is delivered and presented.
Executive Summary
An executive summary provides a comprehensive overview of the project, analyzing relevant variables to enhance understanding. It serves as a concise synopsis of the entire project.
Summary and Conclusions
To provide the decision-making authority with a clear and objective understanding, a summary should be prepared that succinctly outlines the project’s key aspects. It is crucial to clearly establish the project’s objectives and describe the conditions that led to its conception.
Diagnosis
This stage involves gathering general and specific background information about the project. It includes an analysis of the current reality or context in which the project will operate. This is an analytical and speculative phase, addressing questions such as:
- What would the situation be without the project?
- How does the project impact the market?
- What is the environment that will receive the project?
- Why is the project beneficial?
- Which market issues are affected, and how will they change?
Evaluation Methodology
Once the baseline diagnosis is established, allowing for a clear view of the project, the evaluation methodology is defined. This involves analyzing how the project will be approached, how information will be utilized, and what information is desired.
The methodology should address, among other things:
- The baseline situation
- The situation with the project
- The separability of projects
- A method for measuring benefits and costs
- Evaluation criteria
Feasibility Analysis
The feasibility study is the most critical and time-consuming aspect of project preparation and submission. It involves a thorough analysis to determine the project’s viability and potential for success.