A Systems Methodology for Evaluating Industrial Projects in the Context of Natio

Cover A Systems Methodology for Evaluating Industrial Projects in the Context of Natio
A Systems Methodology for Evaluating Industrial Projects in the Context of Natio
Edward Baer Roberts
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Changing Project Cose dustrial project. Similarly, instead of Uwilizing its ow. I electric power generation, an industrial project aight scva money by waiting until suffi- cient lower-cost power is avv^ilable froa -. Unicipal utilities. There is also the option of waiting for technological advances to reduce plant and unit production costs. All of those forces result in the gradually decreasing project costs picturad in Figure 2.
Froci consideration of just these two dynaaic environniental forc
...es of potential project value and potential cost oi the project establishaent and operation, an overview can be developed of the appropriate tin;e period for initiation of an industrial project. Figure 3 revecls the iaportance of project timing when project value and project cost are considered jointly. During the early potential existence of a project, cost is liable to be too 12 - PROJECT VALUE AND COST POTENTIAL /^COST POTENTIAL TIME Figure 3. Environmental Phases of Project high and market value too low for effective project pperation.

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