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then account for all the projects that are not so carried forward?? If the Business case has sufficient merit, approval will be given to proceed to a Development and Definition phase.In the project39。s Development or Definition Phase? The objective of the Development Phase is to establish a good understanding of the work involved to produce the required product, estimate the cost and seek capital funding for the actual execution of the project.? In a formalized setting, especially where big projects are involved, this application for funding is often referred to as a Request for (a capital) Appropriation (RFA) or Capital Appropriation Request (CAR).? This requires the collection of more detailed requirements and data to establish what work needsto be done to produce the required product or deliverable. From this information, a plan is prepared in sufficient detail to give adequate confidence in a dollar figure to be included in the request.? In a less formalized setting, everyone just tries to muddle through.Work Packages and the WBSThe Project Management Plan, Project Brief or Project Charter? If the deliverable consists of a number of different elements, these are identified and assembled into Work Packages (WPs) and presented in the form of a Work Breakdown Structure (WBS).? Each WP involves a set of activities, the work that is planned and scheduled as a part of the Project Management Plan. Note, however, that the planning will still be at a relatively high level,and more detailed planning will be necessary during execution if the project is given the go ahead.? This Project Management Plan, by the way, should bee the bible for the execution phase of the project and is sometimes referred to as the Project Brief or the Project Charter.? The cost of doing the various activities is then estimated and these estimated costs are aggregated to determine the estimated cost of the WP. This approach is known as detailed estimating or bottom up estimating. There are other approaches to estimating that we39。ll e to in a minute. Either way, the result is an estimated cost of the total work of the project.Note: that project risk management planning is an important part of this exercise. This should examine the project39。s assumptions and environmental conditions to identify any weaknesses in the plan thus far, and identify those potential risk events that warrant attention for mitigation. This might take the form of specific contingency planning, and/or the setting aside of prudent funding reserves.Request for capitalConverting the estimate? However, an estimate of the work alone is not sufficient for a capital request. To arrive at a capital request some conversion is necessary, for example, by adding prudent allowances such asoverheads, a contingency allowance to cover normal project risks and management reserves to cover unknowns and possible scope changes.? In addition, it may be necessary to convert the estimating data into a financial accounting formatthat satisfies the corporate or sponsor39。s format for purposes of parison with other projects and consequent funding approval.? In practice all the data for the type of bottom up approach just described may not be available.In this case alternative estimating approaches are adopted that provide variou