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1、2BusinesscaseBeforeembarkingonaproject,itisclearlynecessarytoshowthattherewillbeabenefiteitherintermsofmoneyorserviceorboth.ThedocumentwhichsetsoutthemainadvantagesandparametersoftheprojectiscalledtheBusinessCaseandis(orshouldbe)producedbyeitherthecl
2、ientorthesponsoroftheprojectwhoineffectbecomestheownerofthedocument.Abusinesscaseineffectoutlinesthe‘why’and‘what’oftheprojectaswellasmakingthefinancialcasebyincludingtheinvestmentappraisal.Aswithalldocuments,aclearprocedurefordevelopingthebusinessca
3、seishighlydesirableandthefollowingheadingsgivesomeindicationofthesubjectstobeincluded:1Whyistheprojectrequired?2Whatarewetryingtoachieve?3Whatarethedeliverables?4Whatistheanticipatedcost?5Howlongwillittaketocomplete?6Whatqualitystandardsmustbeachieve
4、d?7Whataretheperformancecriteria?8WhatareKeyPerformanceIndicators(KPI)?ProjectPlanningandControl9Whatarethemainrisks?10Whataresuccesscriteria?12Whoarethemainstakeholders?Inadditionanyknowninformationsuchaslocation,keypersonnel,resourcerequirementsetc
5、.shouldbeincludedsothattherecipients,usuallyaboardofdirectors,areinapositiontoacceptorrejectthecaseforcarryingouttheproject.InvestmentappraisalTheinvestmentappraisal,whichispartofthebusinesscase,will,ifproperlystructured,improvethedecision-makingproc
6、essregardingthedesirabilityorviabilityoftheproject.Itshouldhaveexaminedalltherealisticoptionsbeforemakingafirmrecommendationfortheproposedcase.Theinvestmentappraisalmustalsoincludeacost/benefitanalysisandtakeintoaccountalltherelevantfactorssuchas:Cap
7、italcosts,operatingcosts,overheadcostsSupportandtrainingcostsDismantlinganddisposalcostsExpectedresidualvalue(ifany)AnycostsavingswhichtheprojectwillbringAnybenefitswhichcannotbeexpressedinmonetarytermsToenablesomeoftheoptionstobecompared,thepayback,
8、returnoncapital,netpresentvalueandanticipatedprofitmustbecalculated.Inotherwords,theprojectviabilitymustbeestablished.Projectviability1Returnoninvestment(ROI)Thesimplestwaytoascertainwhethertheinvestmentinaprojectisviableistocalculatethereturnoninves
