Life Cycle Phases
5
ECONOMICS OF PLANT 1. Money for investing to build a plant 2. Money to operate the plant 3. Combine 1. and 2. to provide process profitability 4. Best process among alternative 5. Economic value of process changes or modification of existing process? 6. Uncertainty of evaluation LIFE CYCLE PHASES EVERY COMPANY, PROJECT OR PRODUCT HAS CERTAIN PHASES OF DEVELOPMENT. A CLEAR UNDERSTANDING OF THESE PHASES PERMITS EXECUTIVES TO BETTER CONTROL TOTAL CORPORATE RESOURCES IN THE ACHIEVEMENT OF DESIRED GOALS. THE PHASES OF DEVELOPMENT ARE KNOWN AS LIFE CYCLE PHASES. HOWEVER, THE BREAKDOWN & TERMINOLOGY OF THESE PHASES DIFFER, DEPENDING ON WHETHER WE ARE DISCUSSING, PRODUCT, PROJECT OR COMPANY. PRODUCT LIFE CYCLES
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Transcript of Life Cycle Phases
LIFE CYCLE PHASES
ECONOMICS OF PLANT
1. Money for investing to build a plant
2. Money to operate the plant
3. Combine 1. and 2. to provide process profitability
4. Best process among alternative
5. Economic value of process changes or modification of existing process?6. Uncertainty of evaluation
LIFE CYCLE PHASES
EVERY COMPANY, PROJECT OR PRODUCT HAS CERTAIN PHASES OF DEVELOPMENT.
A CLEAR UNDERSTANDING OF THESE PHASES PERMITS EXECUTIVES TO BETTER CONTROL TOTAL CORPORATE RESOURCES IN THE ACHIEVEMENT OF DESIRED GOALS.
THE PHASES OF DEVELOPMENT ARE KNOWN AS LIFE CYCLE PHASES.
HOWEVER, THE BREAKDOWN & TERMINOLOGY OF THESE PHASES DIFFER, DEPENDING ON WHETHER WE ARE DISCUSSING, PRODUCT, PROJECT OR COMPANY.
PRODUCT LIFE CYCLES
DURING THE PAST FEW YEARS, THERE HAS BEEN AT LEAST PARTIAL AGREEMENT ABOUT THE LIFE CYCLE PHASES OF A PRODUCT:
THEY INCLUDE:
RESEARCH AND DEVELOPMENT (R&D)
MARKET INTRODUCTION
GROWTH
MATURITY
DETERIORATION
DEATH
THE PROJECT LIFE CYCLE CONSISTS OF:
CONCEPTUAL
PLANNING/DEFINITION
IMPLEMENTATION
CONVERSION/OPERATIONAL
CONCEPTUALDEVELOPMENTDEFINITION
& DESIGNIMPLEMENTATION
(CONSTRUCTION)TERMINATION (CONVERSION)
Evaluates potential alternativesOrganizational StructureProduct and Process DesignAssign Work To ParticipantsProvide Information Cost, Schedule
Assessment of costsCommunication, Procedures & SpecificationsMonitoring Actual Progressand Resources utilization
AuthorizationDetail WBSVariance Analysis & Corrective Actions
Financing optionsBudgets
Technological AspectsSystem and Performances ReportingScheduling & Cost InformationReliable Progress Follow - Up
Potential Markets & CompetitionContingency Plans for High Risk Activities
Selection of Projects Based On Profit-ability & Risks
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