Every project is carried out to meet a particular business need. The question is: What assets should be built in order to meet that need? Business Front-End Loading (Business FEL) is a tool for determining which is the "right" project to meet the needs of business. IPA's Business FEL tool assesses the level of definition of a number of critical items that are used to determine what, if any, asset should be built to meet a particular business need. The "right" project is one that best meets the business needs and meets or exceeds expected financial performance. The "right" project provides an asset that fits the business strategy.

We use our Business FEL Index to help both project and business teams understand the risks associated with a capital project. The index is made up of three components: the business case, the business/engineering interface, and the conceptual engineering and facilities planning factor.

Business FEL analysis is typically done at the end of FEL 2; however, for large and complex investments, the tool is usually applied first at the end of FEL 1. In fact, our clients often find great value from a Business FEL analysis in combination with a pacesetter analysis. If a project or company project system closeout or lessons learned analysis is done, Business FEL can be performed retrospectively either to a project or a group of projects, the latter case comprising a Business FEL Benchmarking analysis.

HOW CAN YOUR COMPANY BENEFIT?

The main benefit of the Business FEL analysis is to help companies select the best project opportunities to move forward into process design. With limited project resources available and the constant need to gain competitive advantages, companies should be focused on defining those projects that have the highest likelihood of business success. By applying the Business FEL tool, your company can find out what the business and early engineering risks are so that management can decide whether to proceed-and how to proceed-with further study of the candidate project.

BUSINESS FEL DELIVERABLES

IPA delivers a report detailing the results of the Business FEL analysis, including the Business FEL Index rating of Best, Good, Fair, or Poor and the corresponding prediction for business success in terms of expected level of deviation from planned net present value. We also provide data showing which elements within each of the causal factor categories are in need of improvement or present the greatest risks. The IPA report provides conclusions from the analysis and recommendations on what specific actions the business leadership or project team can take, if any, to achieve the best chances of business success.

For more information about IPA's Business FEL services, call Natalia Zwart (+1 703-726-5305) Allison Aschman (+1 703-726-5338).