INSTRUCTIONS

Develop, and present a plan and business case for an asset management development for the UNIVERSITY OF CAPE TOWN. The report may represent a project proposal or may extend into implementation and assessment of results. The scale of this and the degree of detail may vary depending on the type of development, which can be a minor improvement proposal or a more significant acquisition or development. Typical features to be contained in your report are shown in the Business Case Outline as shown in the following section. However, the range of items and level of detail covered in your report should reflect the actual range and relevance of the activity in your project.

Business Case Outline The business case is a summary of the plan, put forward for approval and funding. In outline, it covers the following points:

1. Project title, name of proposing group, name and details of contact person(s) 2. Executive summary a) Brief statement of problem or opportunity b) Aim of proposal, expected function or effect, and main benefits c) Financial summary, revenue, costs, and NPV projected d) Risks

3. Background situation a) An objective statement of current strengths, weaknesses, opportunities, and threats b) Development concept c) Asset needs analysis d) Existing capability, planned capability, and capability gap analysis e) Indication of any important relationships to other capabilities or proposals

4. Stakeholderslist the roles and/or individuals impacted by the proposal

5. Planning assumptions such as a) Level of service required b) Availability of relevant items, e.g., equipment, land, and utilities c) Demand assumptions d) Price assumptions 6. Options available a) Include the do nothing or base case option b) For each option summarize relevant concepts, data, and analysis c) Include consequences if no action is taken d) Indication of preferred option with reasons

7. Preferred option description a) Operational concept, function, effects, and net benefits b) Technical feasibility c) Function and performance specifications) Acquisition strategy e) Financial Summary f) Consider wider impacts

8. Project financial analysis for preferred option a) Added revenue, value, and/or cost savings b) Acquisition and development costs c) Net personnel and operating costs or savings d) Logistic support and through life costs, LCC e) Project implementation costs f) Required budget g) Cash flow analysis h) Investment analysis: Payback Period i) Investment analysis, NPV, IRR (indicate planning horizon)