We have briefly discussed the concept of the project evaluation stage in a project cycle. After the project evaluation stage, the next stage to be discussed is the project selection stage.
Generally, an organisation will be faced with so many projects that need to be executed. A university for example may be faced with the following projects:
(1) construction of a Senate building
(2) construction of a law faculty building
(3) construction of a teaching hospital complex.
For the university authorities, there must be a way to select which of the projects to execute considering the fact that funds are more or less limited.
In a private sector setting like a firm, the project selection function is a top management function. For example, a firm that manufactures cars may decide whether to buy or manufacture the car engine. This is a top management function, In selecting projects, every management must consider the financial outlays involved, their availability and also costs.
We shall return to how firms select their investment projects.
SELF ASSESSMENT EXERCISE
List three sources of a new project idea.
SUMMARY
This unit treats the concept of a project cycle. The project cycle is basically a stepping-stone into our study of Project Appraisal and Evaluation. It provides a solid background for us. Now that we have discussed the project cycle, we shall be discussing “Project Definition” in the next unit.
Generally, an organisation will be faced with so many projects that need to be executed. A university for example may be faced with the following projects:
(1) construction of a Senate building
(2) construction of a law faculty building
(3) construction of a teaching hospital complex.
For the university authorities, there must be a way to select which of the projects to execute considering the fact that funds are more or less limited.
In a private sector setting like a firm, the project selection function is a top management function. For example, a firm that manufactures cars may decide whether to buy or manufacture the car engine. This is a top management function, In selecting projects, every management must consider the financial outlays involved, their availability and also costs.
We shall return to how firms select their investment projects.
SELF ASSESSMENT EXERCISE
List three sources of a new project idea.
Project Execution Stage
The final stage in the project cycle is the project execution stage. After a project has been selected, the next stage is to execute the project. In an ideal situation, project execution is usually the responsibility of top management. Top management may appoint a project team to execute a project. The function of a project team is to execute a project and report periodically to management.CONCLUSION
In this unit, we have introduced the concept of a project cycle. We have described the project cycle as running from the project idea stage to the project execution stage.SUMMARY
This unit treats the concept of a project cycle. The project cycle is basically a stepping-stone into our study of Project Appraisal and Evaluation. It provides a solid background for us. Now that we have discussed the project cycle, we shall be discussing “Project Definition” in the next unit.
Social Plugin