Project Mgmt Lecture1

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    Project ManagementIt is a specialized branch of managementcapable of differentiation from others based on a variety of factors whichincludes the organization structure, theprocess of planning and control, humanrelation

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    References

    Project management- Harold KerznerProject Management Vasant Desai

    Quantatitive Techniques in Management-N.D. VohraProject Management Prasanna Chandra

    Project Management K Nagrajan

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    Project is accomplished byperforming a set of activities

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    Character sticks of Project

    ObjectivesLife cycleDefinite time limitUniquenessTeam workComplexitySub-contractingRisk & Uncertainity

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    Character sticks of ProjectCustomer Specific natureChangeResponse to environmentForecastingRational choicePrinciple of successionOptimalityControl mechanismMultidisciplinaryConflictsParts of Large Program

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    Attributes of good Projectmanager

    Planning & organizational skillsPersonal Mgmt skillsCommunication skillsChange orientation Ability to solve problems in totalityHigh energy levels Ambition for achievement Ability to take suggestion

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    Taxonomy of Projects Activity- industrial , non-industrialLocation national , internationalProject Completion Time normal, crashOwnership private sector, public, joint sector

    Size small , medium , largeNeed New Project Balancing Project Expansion Project Modernization Project Replacement Project Diversification project Backward Integration project Forward Integration Project

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    Government Regulator

    Major role in industrial developmentIndividual entrepreneurs search forprofitable ventures and function accordingto government frameworkLays down industrial priorities for countrydevelopment

    Adopts Industrial licensing policy tocontrol new investments in such areas where growth has attained stauration

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    Fiscal Policy influence economic activityof country through the medium of budget.Govt presents details of public revenueand expenditure.Monetary policy concerned with qty of

    money and its regulations. RBI regulatesthe volume of money and its mainobjective is to control inflation and

    deflation

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    Search for Business Idea

    Concepts of Project

    Project Identification

    Project Formulation

    Project Analysis & Risks

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    Project Planning

    Project Design &Network Analysis

    Project Report

    Project Appraisal

    Location of Enterprise

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    Phases of a Project Mgmt

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    Project IdentificationPerformance of existing industries Availability of raw material Availability of skilled laborImport / export statisticsPrice trendData from various sourcesResearch laboratoriesConsumption abroadPlan outlays & govt. guidelines Analysis of economic and social trendsReviving sick units

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    Project Formulation

    Pre Feasibility studyFunctional studies- mkt study , rawmaterial , project location, plant size,

    equipment selectionFeasibility study Technical

    Economic Commercial financial

    Detailed Project Analysis (DPR)

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    Feasibility Report

    Market Analysis Consumption trends in the past and present consumption level. Past and present supply position. Production possibilities and constraints. Imports and exports Structure of competition Cost structure Elasticity of demand

    Consumer behavior Distribution channels and marketing policies Administrative, technical and legal constraints

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    Technical AnalysisPreliminary tests and studies Availability of raw materialsSelected scale of operation is optimalProduction process chosen is suitableMachinery is appropriateSupplementary engineering work to be providedProposed layout of site and bldg Work schedules to be realistically drawn Appropriate technology

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    Financial Analysis

    Investment outlay and cost of projectMeans of financingCost of capital

    Projected profitabilityBreak even pointCash flows of the project

    Investment worthwhilenessProjected financial positionLevel of risk

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    Social Profitability Analysis(Economic Analysis)

    Economic cost and benefit of projectImpact of project on distribution ofincome in societyImpact of project on the level of savingsand investment in the society

    Contribution towards self-sufficiency,employment and social order

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    Ecological Analysis

    Environmental damageRestoration measures

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    Criteria for selecting a particularProject

    Investment SizeLocation

    TechnologyEquipmentMarketing

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    Importance of ProjectIdentification

    Economic DevelopmentEmployment and Income generation

    Substantial Financial OutlaysBasic Infrastructure and Environment

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    Establishing the Project

    InitiatingPlanning

    OrganizingExecutingDirecting and Controlling

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    Skills required of a projectManager

    Leadership skillsTeam Building Skills

    Conflict Resolution SkillsTechnical skillsManagerial skills

    Organizing Hum anResource

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