Topics for the Day 2

8/3/2019 Topics for the Day 2

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Project identification

Formulation of project report

General format of the project report

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*World bank say¶s ±´an approval of capital investment to developfacilities to provide goods and services .´

* Project management institute ,U.S.A ±a project is system involving

the co-ordination of a number of separate departments entitiesthrough the organization , and which must be completed within the prescribed schedules and time constraints .

* objective ± is to create/expand/develop certain facilities in order toincrease the production of goods and services for the betterment of the community

* Concerned with collection, compilation and analysis of economicdata for the eventual purpose of locating possible opportunities for the investment and with the development of the characteristics of such opportunities .



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*Input-raw materials,energy,manpower,finance, and

organizational setup:-nature and magnitude of these

had to be determined to make it explicit .

*Output-what project will generate in the form of

goods and services , employment, revenue.

*Impact on society-what society sacrifices and what benefits they get back, accrued from a given project .



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*Systematic development of project idea for the

eventual objective of arriving at an investmentdecision .

*Step by step investigation and development of

project idea

*Joint effort of team of experts .

*Careful, critical ,cautious look at a project idea and

analyzing its various components , in order to

formulate an objective project in its totality.



*Involves the examination of technical ,economic,

commercial ,organizational and legal aspects of a project.

*Aim is to achieve the project objectives with the

minimum resources .

*Deriving maximum benefits from minimum expense

in short span of time.

*Project to be taken after project identification.





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*Each member to be familiar with the strategy , objectives .

*A govt. official ±final clearance

*Industrial economist

*Market analyst

*Engineer/technologist.

*Mechanical engineer.

*Civil engineer

*Accounting expert



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*Feasibility analysis:-desirability of investing for the

development of the project idea .studies carried outregarding the various alternative in marketing ,

technology , finance .

- pre-feasibility :-based on data elaborated here the

investment details are discussed .

- Project concept is justified.

- Market studies , laboratory experiments .decide is it

viable proposition to the investor



*Feasibility study±eg. During public sector projects

more importance can be given to the wide social benefits than to narrow financial profitability.

-possible alternatives solutions for production

programme location for the enterprise ,technology to

be adopted, organization set up .

-in case of non-feasibility , proper efforts to be takento introduce well defined project .



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*Identifying the demand potential of the project

selecting optimum technique needed to achieve the project objective .

*Economy is capable to absorb the product of the

project or not .

*Based on maximum feasible project output and the

selection of strategy appropriate to this output



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*Determination of the demand potential of the project.-helps to strengthen quantitative parameters and providesthe basis for selecting an optimum strategy for the project

-based on product such as capital goods , consumer goods/market competition ,possibility of risk.

*Selection of optimum strategy ±refers to the combinationof controlled variables that assure the attainment of projectobjectives at minimum expenses .

-comparing representative strategies each other andidentifying a strategy suitable to project objectives , anoptimum strategy can be found.



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*Framework of a project with detailed sequences ±

various activities related to one project are

interrelated in a sequential order .

*Development of detailed work plan ,presented in theform of network diagram .

*To identify optimum course of action so as to

implement project with minimum time.

*Detailed identification to the quantification of project

inputs which are essential to develop financial as

well as cost-beneficial profile.



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* Nature of resources of consumed by the project , estimate

quantity of the resources required , to ascertain the

possibility for the resources uninterrupted.

* pre-investment stage :-to know about the project idea andto develop project design ,(limited resources).

*Construction stage :-needs raw materials and consumer

items in a recurring basis ,(maximum).

*Depending on the material and human resources

.formulates the cost estimates of the project so it¶sinevitable in developing financial and cost ±beneficial

analysis .



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*Identify financial characteristics to decide financial

feasibility of the project ±to analyze project costs

,projects incomes , project funds .

*Find out whether project shall produce the income toattain the objective for which the project itself is

undertaken.

*Generate data for computing different profitability

criteria with the aim of establishing the worth of

enterprise for the project in hand .

*Decision for ultimate investment of funds.



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*Social cost and social benefits are estimated and

these useful for- calculating social profitability of the

project .

*Assessing overall worth of the project .

* Not just direct costs and direct benefits , also the

costs borne to project and benefits enjoyed by themare considered .

*Depending on project design ,evaluation be done.



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*Overall impact on country¶s economy .

*How far project is helpful to maintain the

equilibrium of the economy .

*Improving the image of the society .

*Data are collected in earlier stages .

Documents

Topics for the Day 2