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Understanding Project Appraisal Process

The document discusses project appraisal which is the process of reviewing and evaluating a proposed project to approve or reject it. Project appraisal involves analyzing the problem to be solved, generating solution options, selecting the most feasible option, conducting a feasibility analysis, and identifying stakeholders. It is an essential stage of any project to determine feasibility and cost-effectiveness before further planning and development.

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24 views2 pages

Understanding Project Appraisal Process

The document discusses project appraisal which is the process of reviewing and evaluating a proposed project to approve or reject it. Project appraisal involves analyzing the problem to be solved, generating solution options, selecting the most feasible option, conducting a feasibility analysis, and identifying stakeholders. It is an essential stage of any project to determine feasibility and cost-effectiveness before further planning and development.

Uploaded by

Theeateryy
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PROJECT APPRAISAL

When an organization wants to find a solution to a particular business problem


and identify the best way for implementing that solution, it needs to plan and
develop a project that might provide an effective action plan for addressing the
problem through implementing the solution.

This organization will need to give an appraisal of the potential project to make
sure the project is really effective because it supports the right solution and
solves the required problem. In this context, project appraisal management
serves as the major process of analyzing and approving the project.

Defining Project Appraisal


Project Appraisal is a consistent process of reviewing a given project and
evaluating its content to approve or reject this project, through analyzing the
problem or need to be addressed by the project, generating solution options
(alternatives) for solving the problem, selecting the most feasible option,
conducting a feasibility analysis of that option, creating the solution statement,
and identifying all people and organizations concerned with or affected by the
project and its expected outcomes. It is an attempt to justify the project through
analysis, which is a way to determine project feasibility and cost-effectiveness.
Appraising a project means evaluating the proposed solution against its ability
to solve the identified problem or need. Some PM methodologies and guides
(e.g. PMBOK) regards the technical and financial project appraisal as a
component of the initiation or pre-planning phase. PRINCE2 suggests
developing the business case which is a form of project formulation and
appraisal. The Method 123 (MPMM, which is based on PMI and PRINCE2
standards) also uses the business case for preparing a proposed project for
feasibility analysis and assessment.

Project appraisal management is an essential stage of any project, regardless of


its nature, type and size. This stage represents the first point of the pre-planning
or initiation phase. Without having appraised a project, it is financial and
technically unreasonable to proceed with further planning and development.
No matter whether you are going to purchase a new car (e.g. my neighbor’s
project), constructing a building, improving a business process, updating a
network system, conducting a marketing campaign, building a garage, or any
other initiative, you should make a preliminary assessment and appraisal of
your undertaking in order to be sure that that you will do a required and
necessary change to your environment.

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