entrepreneurship module 3 project management
TRANSCRIPT
It is the discipline of planning, organizing and managing resources to bring about the successful completion of specific project goals and objectives.
Project management
A project is a scientifically evolved work plan devised to achieve a specific objective within a specified period of time.
Examples•Setting up a factory•Building a bridge•Establishing educational institution
Allocation & consumptionof resources
Generation of resourcesGoods or services
Project
What is a Project?
Project classification
•Quantifiable projects•Non-quantifiable projects
Sectoral Projects• Agriculture and Allied sector• Irrigation and Power sector• Industry and Mining sector• Transport and Communication sector• Social Service sector•Miscellaneous sector
Project classification
Techno Economic Projects• Factor intensity oriented classification• Causation oriented classification• Magnitude oriented classification
Financial Institution classifications
Profit oriented•New Projects•Expansion projects•Modernization projects•Diversification projects
Service oriented•Welfare projects•Service projects•R & D projects•Educational projects
Project Identification
CollectionCompilationAnalysis of economic data
Possible opportunitiesfor investments
Opportunities• Additive• Complementary• Break-through
Three basic dimension of a project
Inputs
•Raw material•Energy•Manpower•Finance
Outputs
•Goods & services•Employment•Revenue
Social costs & benefits
•Demand and supply in economy•Sacrifice/Benefit from/to society
Project Objectives
Expectations Measure of performance
They should be• Specific, not general• Not overly complex• Measurable, tangible, verifiable• Realistic and attainable• Established within resource bounds• Consistent with resources available/anticipated• Consistent with organizational plans,
policies and procedures
Project Objectives
Retentive objectives Acquisitive objectives
Retention/preservation of•Money•Time•Energy•Equipment•Skills
Acquisition of•Resources •Skills
Economic objectives Social objectives
•Costs/Benefits •Impact on economy of nation
Important techniques of project identification…
Desk research
Collection/use of informationFrom published•Journals•Magazines•Reports
Techno Economic Survey
Investigation by expert teamto identify potential
Demand based industries
Resource based industries
Ex. Ancillary units to Maruti Udyog/ Hero Honda.
Ex. Rice bran oil mill near rice millSteel plants/Cement plants near mines
Project Life Cycle
Pre-investment phase
•Objective formulation•Demand forecasting•Strategy selection•Evaluation of input characteristics•Projection of financial profile•Cost benefit analysis•Pre-investment appraisal
Project Life Cycle
Construction phase
Asset building stage• Land• Plant• Machinery• Ancillary accommodation• Communication services• Control systems• Manpower resources
Project Life Cycle
Normalization phase
•Testing•Trial run•Sample production•Pilot lot production•Rework/ Finer adjustments
Project Formulation
Challenges faced by entrepreneurs..
•Selection of appropriate technology
•Influence of external economies
•Dearth of technically qualified personnel
•Resource mobilization
•Knowledge about government regulations
Project FormulationIt is the systematic development of a project idea for the eventual objective of arriving at an investment decision.
•Step by step investigation•Alerts at the early stage•Contribution from various teams
Large project team•Industrial economist•Market analyst•Technologist/Engineer•Mechanical engineer•Civil engineer•Accounting expert
Helps to get•Loan faster•Government sanctions
Elements of Project Formulation
•Feasibility analysis
•Techno-economic analysis
•Project design and network analysis
•Input analysis
•Financial analysis
•Cost benefit analysis
•Project appraisal
Project/Feasibility Report
Consolidation of various feasibility studies, reports andStatements in to one master report
It helps• Project appraisal• Decision by authorities• Financing agencies for funds
Project formulation Vs Detailed Project Report
Project Selection
Project ideas Project profiles
Criteria to select a project• Investment size• Location• Technology• Equipment• Marketing• Power & water• Other’s performance• Working capital requirements• Labor component• Economic viability
Guidelines for project reportsby Planning Commission
•General information
•Preliminary analysis of alternatives
•Project description
•Marketing plan
•Capital requirements and costs
•Operating requirements and costs
•Financial analysis
•Economic analysis
Project Design & Network Analysis
Project design• Defines the individual activities and their
interrelationship• Identifies the flow of events• Represented by network diagram
Network analysis•Detailed work plan ,with focus on time & resource profile•To identify optimal course of action with all constraints
Project logicCompilation of constituent activities of a project
Network•Graphical representation of project logic•Set of symbols connected with each other
Various network techniques•CPM•PERT•GERT•LOB•PERT/Cost•WASP
Critical Path MethodProgram Evaluation & Review TechniqueGraphical Evaluation & Review TechniqueLine Of Balance
Workshop Analysis Scheduling Program
NetworkSeries of related activities resulting in product or services
Activity•Some action consuming time to complete specific event•It is shown by an arrow•Begins and ends with an event
Event•Start or completion of some activity•Represented by circle in a network diagram
Network diagramGraphical representation of various activities and events
2
3
4 6
5
1 7
A
B
C
D
E
F
G
H
I
Network Diagram
3
4
5
4
2
8
96
8
Activity
Event
Burst
Node
Critical pathCritical activities-C/G/I
2
3
4 6
5
1 7
A
B
C
D
E
F
G
H
I
Network Diagram
3
4
5
4
2
8
96
8
Preceding activities-A/B/D/E for H Succeeding activities-D/H of H
Concurrent activities-D/E