Project Formulation consists of identifying the scope, schedule and budget for the proposed project. Scope is identified typically through a sketch prepared by a member of Project Management.
Project Formulation is defined as taking a first look carefully and critically at a project idea by an entrepreneur to build up an all-round beneficial to project after carefully weighing its various components
Project Formulation is a concise, exact statement of a project to set the boundaries or limits of work to be performed by the project. It is a formal document that gives a distinctive identity of the project and precise meaning of project work to prevent conflict, confusion, or overlap.
Project formulation can be also defined as one of the stages in the lifecycle of a project. The formulation stage is also called Initiation, Conceptualization, Definition, Pre-Project. This stage aims to:
- Carefully identify and weight various components of project work
- Analyse project feasibility and cost-effectiveness
- Examine and approve project inputs and outputs
- Identify stakeholders and their involvement and contribution
- Define benefits and expectations
- Estimate resources needed
- Perform a preliminary analysis of risks
- Make an outline of project schedule
