This is a small effort to simplify project/ business life cycle, steps and methodology.
It starts with the 'WILL' to do something, Ambition to start a new business or project or effort to enhance existing one. It explains the importance of market research, the outcomes, importance of business plans the execution strategy and what shall be done once the execution is completed.
It might not be the master piece representing the title yet it can be very helpful for the people who are willing and ready to take a challenge.
Without criticism, perfection is impossible. I request the critics to help me to bring betterment in next topics.
I shall be glad if I can be of further help in regards to the current topic in particular and related to business in general.
This is my small effort and contribution to make the world a better place by aligning & spreading the knowledge.
Looking forward to your feedback.
Asif Chaudhry
asifpannu@yahoo.com
3. INTRODUCTION
This document is prepared and presented to plan and execute full
exercise to identify, select, analyze & implement a risk free project. It is
a master methodology to start with market research and end with
Monitoring, Control, Adjustment & Enhancement. It covers all stages of
Project Life Cycle.
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4. STAGE 01
MARKET RESEARCH
Market research is any organized effort to gather information
about target markets or customers. It is a very important
component of business strategy.
The Research Process
Define Objective
Design the Research
Data Collection
Data Analysis
Determination & Communication of Results
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5. MARKET RESEARCH
Conventional Research
International Studies & Surveys
National Studies & Surveys
Data from Chamber of Commerce
Data from Relevant Ministries
Expert Reports
Newspapers
Un-Conventional Research
Meeting with Experts & Industry Leaders
Meeting with Related Professionals
Meeting with General Public
Scientific Analysis
Data Mining
Developing Theories & Opinions
Matching Different Variables
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6. MARKET RESEARCH
After this research we will know overall market situation with below factors
Most & Least Popular Sectors
Papules and Saturated Sectors
Under & Over Served Sectors
Sectors in Demand
Main & Support Industries
Local & International Influences
Current & Future Supply & DemandTrends
Taxation
Sectors Encouraged & Discouraged By the Government
Dedicated Special Areas (Economic/ Free Zones)
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7. SECTOR SELECTION
The next important step toward achieving the goal is to select the sector which may include following qualities
Sector in High Demand
Popular Sector with Least Saturation
Under Served Sector
Sector Encouraged by the Government
Sector with Government Subsidies
Sector with High Local Demand
Sector Manageable with Local Expertise
Sector with Ease to Import Expertise
Sector with Easy Future Expansion
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8. INTERNAL ANALYSIS
It is necessary to have a complete insight of organizational internal
situation to make effective use of market research. Internal analysis can
be conducted prior, during or after market research but before moving
to the next stages of decision making.
Effective analysis tools are as below
SWOT analysis
Organizations past, current and future performance
Competitive Advantage
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9. PROJECT SELECTION FOR ASSESSMENT
Market research and internal analysis shall be a denominator to move forward to make realistic choices. After
selection of the sector and analysing organization, the next step is selection of most closely matching and appealing
projects. One or more projects can be selected for presentation to BOD.
The attributes to qualify any project for further assessment shall be as below
Project shall fall within available initial investments
Project shall be within working capability of the organization
Project falling under prior experience & expertise are recommended
Project with minimum risk
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10. OPPORTUNITY/ PROJECT RATIONALE
Once project selection is made, it shall be document with all pros and cons. After having a reasonable confidence in
workability of any project, the project shall be presented to BOD/ CEO/ Chairman or Management for further
discussion and to obtain approval to move forward with further actions.
Opportunity rationale is the most important element of a proposal. While other parts of a proposal concern
themselves with details on how a project would be carried out, the rationale explains why the opportunity is worth
considering in the first place. The Rationale must provide a compelling reason for committing resources to this
opportunity rather than some other opportunity.
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11. STAGE 02
BUSINESS PROJECT PLAN & APPROVAL
After presentation to the management, discussion and taking their consent and approval. The field work shall start for
accepted projects.
The Market research, internal analysis & selected projects require further workings to convert theories into plans to
discuss and align all aspects required to initialize any project.
Here in stage 02 of project life cycle, specific and direct approach shall be applied in consideration with goals,
resources, deliverables and management of project prior and after execution.
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12. BUSINESS PROJECT PLAN & APPROVAL
The business project plan shall include below aspects
Project Scope
Objectives
Deliverables
Success Factors
ProjectTeam/ Organizational Chart
Implementation Process
Recognition of Required Resources
Cost Analysis
Mile stones & Project Schedule
Risk Management
QMS & KPIs
Marketing & Sales
Projected Reports 12
13. PROJECT SCOPE
A project scope statement or executive summary is a useful tool to outline the project's deliverables and identify the
constraints, assumptions and key success factors. The well-written scope statement clearly defines the boundaries of
a project.
The Project Scope Shall Cover as Below
Project Justification
Scope Description
Acceptance Criteria
Project Exclusions
Constraints
Assumptions
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15. PROJECT DELIVERABLES
Explain the deliverables required from the project, such as
Identify end product or services
Explain all details
Explain looks and packaging
Durability
Other details about the product or service
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16. SUCCESS FACTOR
Overview of factors required to make the project a success,
for instance
Key clients or target market
Delivery on Time
Quality of the Product
Cost Controls
Others
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17. PROJECTTEAM/ ORGANIZATIONAL CHART
Highlight the required team for project. Identify
the expertise and skills required for project
execution, operations & management
The ManagementTeam
The ProjectTeam
The Production Team
The SalesTeam
The SupportTeam
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General
Manager
Financial
Manager
Project
Manager
Support
Manager
Production
Manager
Sales
Manager
Project
Secretory
18. IMPLEMENTATION PROCESS
A complete implementation process shall be
defined for the project, it may include
Tasks/activities
Procedures
Tools/technology
Project change control process
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19. RECOGNITION OF REQUIRED RESOURCES
Knowing the required resources for any project
before in timeline & right quantities is very
important. It may include
Required Workforce
Equipment and Machinery
Places of Production and Delivery
Outsourced Services/ Products
Manufacturing or Acquisitions
Required Marketing and Sales Strengths
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20. COST ANALYSIS
One of the most important factors in success of any business plan is knowing the
accurate costs prior, during and after execution. Wrong estimates can jeopardize
the project at any stage.The costs can be classified as
Initial Investment
Capital Expenditure
Licensing & Legal Fees
Financial Costs
Running Costs
Direct & Indirect Costs
Sales & Marketing Costs
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21. MILESTONES & PROJECT SCHEDULE
Setting up the milestones with timeline and
specific dates helps the achievement of
projects on time. The schedule helps to
identify the total required time. Achievement
of Milestones can be step by step or in
parallel. The adjustments can be made in
accordance with different factors
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Legalization
•September 2016
Building Readiness
•March 2017
Import & Pant Fix
•April 2017
Manpower
Mobilization
•April 2017
Production
•May 2017
22. RISK MANAGEMENT
In every core of business, risks prevail. It is possible
to minimize the risk with proper management. Still
probabilities prevail that risks turn true. It is
required to highlight possible risks, the probability of
occurrence, impact on project, assignment of risk
ownership and drafting a mitigation plan.
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23. QMS & KPI
Quality Management System & Key Performance
Indicators keeps the project on required track and helps
prevent any deviation. Help can be taken by analyzing
market leaders and best practices. Some factors of
consideration can be
Quality Standards
Plans to Manage the Standards
Monitoring the Plans within Set Costs
Monitoring the Plans within Set Timelines
Define Performance Indicators
Define Mechanism to monitor, control & enhance indicators
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24. MARKETING & SALES
One of the most important factor in any project is
its Marketing to spread the message and awareness
and setting up the sales channels. . Some factors of
consideration can be
Quality Standards
Plans to Manage the Standards
Monitoring the Plans within Set Costs
Monitoring the Plans within Set Timelines
Define Performance Indicators
Define Mechanism to monitor, control & enhance
indicators
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25. PROJECTED REPORTS
The estimations and plans shall be translated into financial terms to represent the value of plan for minimum next 10 years. The important components of the reporting pack shall be as below
Internal Rate of Return (IRR)
Payback Period
Net Present Value
Capital Expenditure Breakdown
Operating Expenses
Working Capital Requirement
Space Requirement, Allocation and Costing
Machineries, tools requirement and Costing
Raw Materials Requirement and Costing
Human Resources Requirement and Costing
Production and Sales Estimation
Pricing Methodology
Projected Cash Flow
Projected Income Statement
Projected Balance Sheet
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26. STAGE 03
PROJECT EXECUTION
Once approved, the business plan shall be transformed into execution
plan. The focus shall be shifted to translate the plan into reality. Some
factors for project execution are as below
Execution Plan
Timelines
Selection of Contractors
Selection of Equipment
BOQs
Implementation of Cost Control Process
Recruitment & Manpower Mobilization Plan
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27. STAGE 04
MONITORING, CONTROL,ADJUSTMENT & ENHANCEMENT
After successful execution of project the focus shall shift to monitor,
control, adjust and enhance the organizational efficiency. The
projection shall become the initial benchmarks. This process is
continuous and shall focus on improving the profitability by reducing
the cost and enhancing the profitability to maximize return on
investments
Define Activities
Define Process, Policies & Procedures
QMS & KPIs
Job Descriptions
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