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Unit8 VTU-Management-Preparation of Project Report Raghudathesh G P LATA S H
Unit8 VTU-Management-Preparation of Project Report Raghudathesh G P LATA S H
UNIT - 8
7 Hours
TEXT BOOKS:
BY:
RAGHUDATHESH G P, LATA S H
Asst Professor
ECE Dept, GMIT
Davangere 577004
Cell: +917411459249
Mail: datheshraghubooks@gmail.com, lathah@gmit.ac.in
Website: raghudathesh.weebly.com
Quotes:
A best friend is like a four leaf clover, hard to find, lucky to have
Life isn't measured by the number of breaths you take, but by the number
of moments that take your breath away.
Life doesn't have any hands, but it can sure give you a slap sometimes.
We all have baggage, find someone who loves you enough to help you
unpack.
You come into the world with nothing, and the purpose of your life is to
make something out of nothing.
Unit-8: Preparation of Project
Project:
Definition: Project is a "scientifically evolved work plan intended to achieve a
specific objective within a specified period of time".
It is a scheme, design, a proposal of something intended or devised to be achieved
Each project differs in size, nature, objectives & complexity but they have the
following 3 basic attributes of project
A course of action
Specific objectives
Definite time duration
The basic necessity of an Entrepreneur is to decide upon a project, success of any
enterprise depends on the selection of right project
It is also referred to as foundation for any venture
Innovation & vision form an integral aspect of a project
Classification of Project :
1) a) Quantifiable Projects:
projects for which right quantitative assessment of benefit can be made i.e. which
can be measured are termed as quantifiable projects
Ex.: Projects related to power generation, industrial development etc.
1) b) Non-Quantifiable Projects:
Projects for which quantitative assessment cannot be made and which is not
measurable are termed as non-quantifiable projects
Ex.: projects involving health, education etc.
2) Sectoral Projects: projects are classified based on different sectors or area such as
Automobile sector, Agriculture sector, Health sector, Power sector, Transportation sector,
Manufacturing sector, Food-processing sector etc.
3) Techno-economic Projects: this classification has 3 groups
1) Factor Intensity-oriented classification: - classified as capital intensive or labour
intensive. If large investment is made then such projects are called capital intensive, if
the projects involve large number of human resources then such projects are called
labour intensive.
2) Cause-oriented classification: - classified as demand based or raw material based. If
there is demand for certain goods/services then it can be called as demand based, the
availability of the raw materials & other resources makes it material based.
3) Magnitude oriented classification: - magnitude of investment (large scale/medium
scale/small scale) is depending upon investment in project.
Project Identification:
Project identification is concerned with collection of economic data, compiling &
analysing it to identify the possibility of investment to produce the goods or service
for making profit
Project identification May come from one or the other of the following ways:
a. Observation: observation is very important source of project idea. Observation
of existing project/processes may lead to the development of a new idea.
b. Trade & professional magazines: trade & professional literatures helps in
getting knowledge about new trends & latest technology which helps in getting
new ideas.
c. Bulletins of research institutions: R&D bulletins of some institutions also
provide some new ideas which are published in the bulletins
d. Government sources: departmental publications of various government
departments also provide useful information which helps in identifying new
ideas.
The project ideas can be discovered from various sources such as:
1. Knowledge of potential customer need
2. Watching emerging trends in demands for certain products
3. Knowledge about the government policy, concessions & incentive, list of items
reserved for manufacture
4. Scope for producing substitute product
5. Visiting trade fairs, exhibitions of new products etc
6. Observation of market & similar products
7. Competitors product
8. Ideas given by friends, relatives based on the intuition & observation
Project Selection:
The selection of project can be done by taking into account the following points
1. Technology: the technology required to develop the project should be available
within, as the project can be started because it may be difficult & costly to get the
technology from foreign collaboration.
2. Equipment: the availability of equipment also should be taken care. Entrepreneur
should select the best equipment available for the project.
3. Investment size: the investment required for a particular project must be made
accurately as wrong estimation may lead to shortage of funds.
4. Location: suitable location for a particular project is important. The entrepreneur
should locate the project where raw materials & resources are available. He may
also start a project in a notified area given by government to avail certain services
such as concessions & subsidies.
5. Marketing: the product should be marketable; the correct estimation of demand
& market share has to be made.
Network Analysis:
Network is a set of symbols connected with each other in a sequential relationship
with each other making completion of a project/event.
A business plan or any project contains various activities
Any delay in any activity will affect other activities, project is delayed, costs will go
up leading to reduced profit.
A number of g techniques have been developed for project scheduling. They are
1. Program Evaluation & Review Techniques (PERT)
2. Critical Path Method (CPM)
3. Line of Balance (LOB)
4. Graphical Evaluation & Review Techniques (GERT)
5. Workshop Analysis & Schedule Program (WASP)
PERT & CPM are most widely used network analysis
Questions:
1. Define Project what are the critical for selecting a particular project, an Entrepreneur
should consider?
2. Explain the phases of project identification with its sources.
3. What are the methods or steps followed in Project Appraisal? Explain
4. Define Project report & discuss its need & significance
5. What are the common errors in project report formulation? Explain.
6. What is Market feasibility? Explain.
7. Briefly explain the importance of Project Identification.
8. Explain importance of network analysis. What are the various techniques used for network
analysis?
9. Explain both PERT & CPM with its advantages & disadvantages.
10. Briefly outline the contents of a Project report
11. What is social feasibility? Explain.
12. What is technical feasibility? Explain.
13. What is financial feasibility? Explain.
14. What is Project formulation? Explain the process of project formulation.
15. Discuss about the classification of Projects.
16. What are the Guidelines by planning commission for Project Report?
17. Write about identification of business ideas.