What is the concept of project formulation

Concept and need
The concept of project formulation is to develop the idea of a project with a view to arriving at an investment decision. It emits a danger signal, if any, at the appropriate earlier stage itself during the process of utilization of resources. Project formulation paves the way for stage by stage investigation and development of a project idea. Since the exercise of project formulation consists of several stages, one stage will lead to another stage. Project formulation exercise will indicate the sign of weakness, if any, observed at any of the stages. Accordingly, the entrepreneur can take a decision to either correct the weakness at that stage itself or eliminate the same without carrying it forward.
By doing so, the problem can be solved then and there and it will not lead to further complications. Another concept of project formulation is to mobilize and coordinate the joint efforts of a team of experts. Project formulation will enable each member of the team to be familiar with the objectives, strategies and other aspects of the project. The project team should consist of experts in major fields of the project. Any large project should include the following team members:-
a) One industrial economist
b) One market analyst
c) One or more technologist/engineer specializing in the appropriate industry
d) One mechanical and/or industrial engineer
e) One civil engineer, if needed
f) One management accounting expert
The following steps are needed for Project Formulation:-
a) Objectives of the project
b) Location and size of the project
c) Availability of various resources
d) Infrastructure facilities
e) Areas of operation
f) Type and level of activities to be undertaken
g) Type and size of the organization
h) Amount of investment
i) Time schedule for the activities