Q1- Explain salient features and activities involved in Project management (Project Management: 4-7) A project is a temporary endeavor

involving a connected sequence of activities and a range of resources, which is designed to achieve a specific and unique outcome and which operates within time, cost and quality constraints and which is often used to introduce change. The application of a collection of tools and techniques to direct the use of diverse resources towards the accomplishment of a unique, complex, one time task within time, cost and quality constraints. Its origins lie in World War II, when the military authorities used the techniques of operational research to plan the optimum use of resources. One of these techniques was the use of networks to represent a system of related activities

Characteristic of a project l l l l l l An unique, one-time operational activity or effort Requires the completion of a large number of interrelated activities Established to achieve specific objective Resources, such as time and/or money, are limited Typically has its own management structure Needs leadership

Examples constructing houses, factories, shopping malls developing military weapons systems, aircrafts, new ships launching satellite systems constructing oil pipelines developing and implementing new computer systems introducing new products into market

Project Management Process Project planning Project scheduling

Project control Project team made up of individuals from various areas and departments within a company

Matrix organization a team structure with members from functional areas, depending on skills required

Project Manager most important member of project team

Scope statement a document that provides an understanding, justification, and expected result of a project

Statement of work written description of objectives of a project

Organizational Breakdown Structure a chart that shows which organizational units are responsible for work items

Responsibility Assignment Matrix shows who is responsible for work in a project

Also explain main factors considered in project finalization. (3:11-15) Scouting of project ideas Preliminary screening Project rating index Sources of positive NPV (xerox)

Explain PORTERs generic competitive strategies application from project (3:7) (Xerox)

Q3- What are key steps in Market and Demand Analysis and their relationships in consideration of Projects what information is sought in market survey. (4:3-9)

Situational Analysis In order to get a feel of the relationship between the product and its market, the project analyst may informally talk to customers, competitors, middlemen, and others in the industry. Wherever possible, he may look at the experience of the company to learn about the preferences and purchasing power of customers, actions and strategies of competitors, and practices of the middlemen. Collection of Secondary Information Secondary information is information that has been gathered in some other context and is readily available. Secondary information provides the base and the starting point for the market and demand analysis. It indicates what is known and often provides leads and cues for gathering primary information required for further analysis. Evaluation of Secondary Information While secondary information is available economically and readily (provided the market analyst is able to locate it), its reliability, accuracy, and relevance for the purpose under consideration must be carefully examined. The market analyst should seek to know: Who gathered the information? What was the objective? When was the information gathered? When was it published? How representative was the period for which the information was gathered? Have the terms in the study been carefully and unambiguously defined? What was the target population? How was the sample chosen? How representative was the sample? How satisfactory was the process of information gathering? What was the degree of sampling bias and non-response bias in the information gathered?

What was the degree of misrepresentation by respondents?

Market Survey Secondary information, though useful, often does not provide a comprehensive basis for market and demand analysis. It needs to be supplemented with primary information gathered through a market survey. The market survey may be a census survey or a sample survey; typically it is the latter. Information Sought in a Market Survey The information sought in a market survey may relate to one or more of the following: Total demand and rate of growth of demand Demand in different segments of the market Income and price elasticities of demand Motives for buying Purchasing plans and intentions Satisfaction with existing products Unsatisfied needs Attitudes toward various products Distributive trade practices and preferences Socio-economic characteristics of buyers

Steps in a Sample Survey Typically, a sample survey involves the following steps:

1. Define the target population. 2. Select the sampling scheme and sample size. 3. Develop the questionnaire. 4. Recruit and train the field investigators. 5. Obtain information as per the questionnaire from the sample of respondents.

6. Scrutinise the information gathered. 7. Analyse and interpret the information. Characterisation of the Market Based on the information gathered from secondary sources and through the market survey, the market for the product/service may be described in terms of the following: Effective demand in the past and present Breakdown of demand Price Methods of distribution and sales promotion Consumers Supply and competition Government policy

Q4-Explain the factors considered while arriving cost of project (6:4) Cost of Project The cost of project represents the total of all items of outlay associated with a project which are supported by long-term funds. It is the sum of the outlays on the following: Land and site development Buildings and civil works Plant and machinery Technical know-how and engineering fees Expenses on foreign technicians and training of Indian technicians abroad Miscellaneous fixed assets Preliminary and capital issue expenses Pre-operative expenses Margin money for working capital

Initial cash losses

And means of Finance (6:5) Means of Finance To meet the cost of the project the following means of finance are available: Share capital Term loans Debenture capital Deferred credit Incentive sources Miscellaneous sources

How profitability projections are made (6:11-12) Profitability Projections (or Estimates of Working Results) Given the estimates of sales revenues and cost of production, the next step is to prepare the profitability projections or estimates of working results (as they are referred to by term-lending financial institutions in India). The estimates of working results may be prepared along the following lines: A Cost of Production B Total administrative expenses C Total sales expenses D Royalty and know-how payable E Total cost of production (A+B+C+D) F Expected sales G Gross profit before interest H Total financial expenses I Depreciation J Operating Profit (G - H - I) K Other income L Preliminary expenses written off

M Profit/loss before taxation (J+K - L) N Provision for taxation O Profit after tax (M - N) Less Dividend on - Preference capital - Equity capital P Retained profit Q Net cash accrual (P+I+L)

What are the factors do you consider in working Results (6:7). Refer to diagram on slide no.3 Estimates of Sales and Production In estimating sales and production, assume that: The capacity utilisation would be at 40-50 percent of the installed capacity in the first year, 50-80 percent in the second year, and 80-90 percent from the third year onwards. Production and sales will be equal. The selling price used may be the present selling price.

Which Factors are considered for Project Location selection? (5:9) Location and Site Location refers to a broad area; site refers to a specific piece of land. The choice of location is influenced by a variety of considerations: Proximity to raw materials and markets Availability of infrastructure Labour situation Governmental policies Other factors