ABSTRACT

This chapter focuses on that part of project definition which should take place before a project is authorized. This is the process that is essential to setting the project on the correct course and which plays a vital role in establishing the initial contractual commitments. Checklists are a useful way of making certain that nothing important is forgotten. Contractors who have amassed a great deal of experience in their particular field of project operation will learn the types of questions that must be asked of the customer in order to fill in most of the information gaps and arrive at a specification that is sufficiently complete. Similar arguments to those discussed above for design apply to the need to associate the production methods actually used in manufacturing projects with those assumed in cost estimates and subsequent budgets. Development programmes aimed at introducing additions or changes to a company’s product range are prone to overspending on cost budgets and late completion.