Chapter 2 Identifying and Selecting Projects

Chapter 2 Identifying and Selecting Projects

Why an organization would start a project? Based on what circumstances organization would select a project? What is project charter and RFP?

Recognizing a need, problem and opportunity would be the beginning of the project life cycle. As part of its normal business operations, in response to unexpected issue, a project can be identified.  As well as while an organization’s strategic planning, or as a group of individuals deciding to recognize a particular need for the organization.

Organizations sometimes identify numerous needs however, having limited funds and people available to chase those needs. In this scenario, company would go through a decision-making process to rank and select the projects will provide greatest return on the investments or overall benefit. At this point evaluating potential projects will be based on the overall return. Here is some factors can be considerable for evaluating a project; the benefits and consequences, advantage and disadvantages.

Next step after the project selected, come the project charter which a formally authorized document. In this document the sponsor/customer provides approval to go forward with the project and commits the funding for the projects. Also content of conditions and parameters for the projects and establishes the framework for developing a detailed baseline plan for performing the project.

Now the company need to prepare a request for proposal (RFP) is a document, prepared by the sponsor/customer to identify the needs. Normally the proposal consist of a proposed approach, schedule, and budget for meeting the project requirement.

Once the RFP is available to contractors and business customers. Contractors and business customer consider the RFP process to be a competitive situation. Sponsor/Customer should be careful not to provide one or more contractors with information that is not provided to all interested contractors, however in some cases RFP is just a formality when a vendor is already been chosen by the sponsor/customer.