SI. No. Units Project Planning Feasibility Study Entrepreneurship Entrepreneurship environment Small Business management Page. No. 10 62 72 78* Unit 1: Project Planning Definition of Project: A project is defined as an effort to create or modify a specific product or service. Projects are temporary work efforts with a clear beginning and end. Projects can be completely contained within a specific unit or department, or include other organizations and vendors. A work effort may be considered a project if it meets the criteria established by the organization. Example criteria are provided below: . The project is estimated to take over 250 hours. (each organization can define what they believe is a project) The project is estimated to take longer than six months. The project or probable solution is considered to be complicated. The project involves unfamiliar technologies, new products, or unique solutions. The project will involve more than one department, or multiple units within the organization. 6. The project has dependencies to other projects or vendors. 7. The project has a high impact to other users, or impacts a large number of users. The project is considered to be a high profile project for the department. . The project must be delivered within a short or specific timeline. eRe oe © Classification of the project are as following 1.Quantifiable and Non-quantifiable Here projects can be divided into two broader categories namely quantifiable and non-quantifiable.In a quantifiable project, it is possible to measure the end benefits or outcomes of the end benefits or outcomes of the project. Whereas in non-quantifiable end result cannot be calculated properly.2. Sector Project The Planning Committee of India has classified projects for various sectors. agriculture sector. 2.lrrigation & Power. 3.Transport & Communication. 4,Social Services. 3. Techno-Economic Project Here project is classified on the basis of technology & Economic Characteristics. a) Factor intensity oriented classification In this category, projects are either capital intensive or labor-intensive depending upon their size & investment pattern. For eg: IT project or service rendering project is labor-intensive depending on their size and investment pattern. b) Cause-oriented In this category, projects are based on either the availability of raw material or demand for that project. For eg- Power project required, abundant water, steel plant required iron ore as raw material,C) Magnitude oriented classification Here the size of an investment is considered depending on the investment. A project can be classified as a tiny unit investment to 25 lakhs Small-scale unit investment up to 1 crore. medium scale enterprise investment up to 5 crores or more. Importance: Organisations are constantly facing new challenges and opportunities. The world and marketplace is fast-paced and filled with uncertainties and opportunities for growth. Without the practise of project management, organisations would find themselves drowning in an ocean of failed projects and processes with few options of salvation. All organisations need to take project management seriously in order to survive and thrive. Project scope: Project scope is the part of project planning that involves determining and documenting a list of specific project goals, deliverables, tasks, costs and deadlines. The documentation of a project's scope is called a scope Statement or terms of reference. It explains the boundaries of the project, establishes responsibilities for each team member and sets up procedures for how completed work will be verified and approved. Project Identification: Project identification is a process in the initiating phase of project life cycle for identifying a need, problem, or opportunity. Once identified, a project is initially documented objectively defining what was identified. This identification can be the result of a organization's strategic planning, of a company's normal operations, as the response to an unexpected event, or to a need. The purpose of project identification is to develop a preliminary proposal for the most appropriate set of interventions and course of action, withinifi t specific time and budget frames, to address a specific development goal in a particular region or setting. Idea generating and screening: | With your list of potential new product ideas, you now need to decide which ideas to pursue and which to discard. Consider your competition, your existing products, their shortcomings, and the needs of your market, Draw on the customer needs list you have developed, and the areas for product improvement you have identified. Develop a set of criteria to evaluate your ideas against. Your criteria might include: “most prominently identified customer needs “product improvements most needed sthe benefits to your target market *the technical feasibility of the idea *the level and scope of research and development required *the profitability of the idea. What is its potential appeal to the market? How would you Price it? What are to market — overall and per unit? where the product fits in the market. Is there to competitor products? the resources it will require in development i *the marketing potential of the idea sthe fit with your business profile and business objectives. | Project selection and planning : the costs in bringing it a gap? How close is it | uation of project id 5 ich | project has the highest priority. 1 Proj as to help decide whid S an import . " management (PPM), which is Portant part of project portfolioreturn on undertaking a project. Typically, when project managers select a project, they may consider the following factors: + Costs + Resources + Benefits or ROI + Time to complete the project + Risks associated with the project Project planning is a discipline addressing how to complete a project in a certain timeframe, usually with defined stages and designated resources. One view of project planning divides the activity into these steps: ssetting measurable objectives sidentifying deliverables escheduling «planning tasks Project formulation : A process is a collection of interrelated actions and activities that take place in order to achieve a set of previously specified products, results or services. The project team is in charge of executing the formulation, evaluation and project management processes. The processes (tasks and activities) have clear dependencies and are done following the same sequence in each project. They are independent from the area of application approaches. These groups of processes consider the multidimensional nature of formulation, evaluation and project management.Project life cycle : The Project Lifecycle is the sequence of phases through when a project progresses. The number of phases and sequence of the cycle may vary based on the company and the type of project undergone. As part of a project, however, they should have a definite start and end, and they are constrained by time. The lifecycle provides the basic foundation of the actions that has to be performed in the project, irrespective of the specific work involved. The Project Lifecycle typically involves these four stages: 1 Project Initiation — this is the start of the project. It may involve many| sub-activities including: a feasibility study, identifying the scope, identifying deliverables, identifying project stakeholders, developing a business case, creating a statement of work, and possibly initial costs, price, and timeline for work to be done. 2Project Planning - Once the project is approved from the initiation phase, it moves into planning. This phase involves creating a project plan, including the tasks, schedule, resources, and constraints on the: project. The budget for the project is also created in this phase. In addition, risk should be anticipated and identified at this stage, as well as mitigation plans. 3. Project Execution — This phase is where the work gets done. Task owners begin work and the project manager oversees that tasks are done ina timely manner and workflow continues smoothly. Monitoring and Controlling (managing the work and financials) are a big part of this phase, as issues will always arise and require quick adjustments as the project progresses. |4. Project Closure — Once the team has completed all the tasks, and the Project owner signs off that all deliverables are complete, the project is closed. Any documentation is handed over to the project owner and if required to an ongoing maintenance organization, The project is then analyzed for performance to determine whether the Project’s goals were ei ot pertormance Project organization: Project organization is a process. It provides the arrangement for decisions on how to Tealize a project. It decides the project’s process: planning how its Costs, deadlines, Personnel, and tools will be implemented. The Project organization is then presented to the project stakeholders. Types of Project Organizational Structures There are a variety of project organizational structures, Here are three: ‘Functional is when the organizational departments are grouped by areas of specialization, In this Case, the project is usually executed in a silo environment, *Projectized is when the entire organization is organized by the project. -Matrix has teams Teport to both a functional Manager and Project manager; sort of a hybrid of the previous two structures, ‘Organic project organization embraces flexibility. ‘Virtual is when the Project manager is the hub in the network.-Multi-division means that functional groups are decentralized. Roles and responsibilities of project manager: 1. Activity and resource planning Planning is instrumental in meeting project deadlines, and many projects fail due to poor planning. First and foremost, good project managers define the project’s scope and determine available resources. Good project managers know how to realistically set time estimates and evaluate the team’s or teams’ capabilities. 2. Organizing and motivating a project team Good _project_managers don’t get their teams bogged down with elaborate spreadsheets, long checklists, and whiteboards. Instead, they put their teams front and center. They develop clear, straightforward plans that stimulate their teams to reach their full potential. They cut down on bureaucracy and steer their teams down a clear path to the final goal. 3. Controlling time management Clients usually judge a project’s success or failure on whether it has been delivered on time. Therefore, meeting deadlines are non-negotiable. Good project managers know how to set realistic deadlines, and how t communicate them consistently to their teams. They know how to effectively do the following: «Define activity «Sequence activity Estimate the duration of activity Develop a scheduleMaintain a schedule 4. Cost estimating and developing the budget Good project managers know how to keep a project within its set budget. Even if a project meets a client’s expectations and is delivered on time, it will still be a failure if it goes wildly over budget. Good project managers frequently review the budget and plan ahead to avoid massive budget overruns. 5. Ensuring customer satisfaction In the end, a project is only a success if the customer is happy. One of the key responsibilities of every project manager is to minimize uncertainty, avoid any unwanted surprises, and involve their clients in the project as much as is reasonably possible. Good project managers know how to maintain effective communication and keep the company’s clients up-to-date. 6. Analyzing and managing project risk The bigger the project is, the more likely there are to be hurdles and pitfalls that weren’t part of the initial plan. Hiccups are inevitable, but good project managers know how meticulously and almost intuitively, identify and evaluate potential risks before the project begins. They know how to then avoid risks or at least minimize their impact. 7. Monitoring progress During the initial stages, project managers and their teams have a clear vision and high hopes of producing the desired result, However, the path to the finish line is never without some bumps along the way. When things don’t go according to a plan, a project manager needs to monitor| ae — team performance and to always and analyze both expenditures and efficiently take corrective measures. cessary documentation know how essential final reports tt managers can present ements were 8. Managing reports and net Finally, experienced project managers and proper documentation are. Good project comprehensive reports documenting that all project requir fulfilled, as well as the projects’ history, including what was done, who was involved, and what could be done better in the future. Managing project team : The process of managing project team is an activity that allows tracking performance of team members, using feedback, resolving strategic and operational issues, and managing changes for the purpose of optimizing project performance. The process of managing project team addresses specific team management challenges associated with communication, recognition and assessment of team objectives. The project manager takes responsibility of managing project team and ensuring success of team management activities. The project manager should have and use the following interpersonal skills for managing project team: sLeadership is a critical skill for teambuilding and ceamwort management. A high level of leadership allows the projet manager to communicate the project vision and organize tht project team to achieve high performance °sInfluencing is critical for bearing influence on project stakeholders and their decisions. The Project manager needs to develop this interpersonal skill to reach mutual agreements with project team members and address critical issues. *Effective decision making is an ability to undertake the decision- making process which entails conducting negotiations with stakeholders and Project team for the purpose of studying environment factors, developing personal quality of team members, stimulating team creativity, and managing risks and Opportunities,Pre-feasibility Study Prefeasibility studies are an early stage analysis of a potential mining project. They are conducted by a small team and designed to give company stakeholders the basic information they need to green light a project or choose between potential investments. Prefeasibility studies typically give an overview of a mining project's logistics, capital requirements, key challenges and other information deemed important to the decision-making process. When and why do companies undertake them Pre-feasibility studies act as one of the first explorations of a potential investment, following a preliminary resource report and the creation of an orebody model. Based on the data procured by various assessments, a pre-feasibility study may occur. Companies use these studies to collect information before investing millions of dollars into tasks like acquiring permits or research equipment. What information do they include In addition to information relating to geological models and mine design, pre-feasibility studies also take into account factors that may impact or interfere with the final project. That can involve community issues, geographic obstacles, permit challenges and more. ‘A comprehensive pre-feasibility study should include detailed designs and descriptions for mine operation, as well as cost estimates, project risks, safety issues and other important information. There should also be multiple options included in the study for tackling different issues, as that will provide organizations with more ways to overcome potential challenges. What happens if results of the pre-feasibility study are positive or Negative Ifa pre-feasibility study results in a positive base-case scenario, the company will likely move on to the next stage: a feasibility study. If the study is negative, organizations may head back to the drawing board or abandon the potential project altogether. Market and Demand Analysis, Market and demand analysis is carried out to identify the aggregate demand for a product or service and the market share a project under consideration is expected deliver. Companies perform market demand analysis to comprehend how much consumer demand exists in the market for a product or service. they can successfully enter a market and This analysis helps management conclude generate enough profits to grow their business operations. Key Steps in Market & Demand Analysis, and their Inter-relationships{7 Condue Market Sune! —1 situational analysis and specication of objectives inorder to get “feel” ofthe relationship betwee the product and its market, the project analyst may informally talk to customers, competitors, middlemen, and othersin the industry. Wherever possible, the analyst me Took at the experience of the company toleam pout the preferences and purchasing power of ‘customers, actions and strategies of competitors, and practices of the middlemen Collection of secondary information ‘te information required for demand and market analysis is usuallY obtained partly from aevondary sources and partly through @ market survey. In marketing research, a distinction is usually made between primary information and secondary information. Primary information refers to information which is collected for the first time t meet the specific surpose on hand; secondary information, in contrast, information ‘which isin existence ond which has been gathered in some other context. Secondary information provides the base and the starting point for market and demand analysis. It indicates what jig known and “often provides leads and cues for further investigation. secondary information is information that has been gathered in some other context and lS recy aaa ts i base and the starting point for the market and sera a mand often provides leads and cues fr gather™gP™ information required for further analysis. wi cae Somation is available economically and readily (provides the market a erator md leat srl, aecuraey, and relevance for the purpose Un mimust be carefully examined, The market analyst should seek to ™" ‘Who gathered the information? What was the objective? ‘When was the information gathered? When was it published? alHow representative was the period for which the information was gathered? 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? epresentation by respondents? What was the degree of Feasibility Study: Technical — Commercial - Environmental What Is Technical Feasibility? Tecan be described as the formal process of assessing whether it is technically possible to manufacture a product or service, Before launching a new offering or taking up a client project, itis essential to plan and prepare for every step of the operation. Technical feasibility helps determine the efficacy of the proposed plan by analysing the process, including tools, technology, material, labour and logistics. A technical feasibility study helps organisations determine whether they have the technical resources to convert the idea into a fully functional and profitable working system. It helps in voubleshooting the project before commencing work. The study identifies potential challenges and uncovers ways fo overcome them. It also helps in long-term planning, as it can serve as a flowchart for how products and services evolve before they reach the market What Is the Purpose Of A Technical Feasibility Study? A technical feasibility study helps find the answers to the following questions: + sit possible to develop the product with the available technology in the company? + Is the organisation equipped with the necessary technology for project completion? Are there technically strong employees who can deliver the product on time and within budget using the available technology?Is there scope in the company's budget to add more technical resources? «1 the available technology the right choice to help the product team save time and complete development within budget? Does the client require specific technology, or is he client open to developing the product, irespective ofthe technology? How To Conduct A Technical Feasibility Study? Follow these steps to help you plan a technical feasibility study for your business project 1. Conduct an initial analysis “The initial analysis (also known as preliminary analysis) helps deside whether the project a fhundertaking from an economic and time Derspee ‘A project is required to give Mounejal retums and conclude within a reasonable ‘dmeframe to make it feasible. The wo main areas of preliminary analysis include; Project outline Start by describing the project using the available details. The outline lists all the Saar nts like the target market, the expected goals ‘and outcomes. It also analyses whether sear are any available products or services in the market that meet these goals and how the Ccarvent project offers features or benefits that are better and more efficient Technical and equipment accessibility Evaluate if there are any barriers or factors that hinder profitability. Challenges in accessing raw material, expensive capital, production cosfs that go over the projected revenues and aek ware sight technology are some of the extical Factors that hinder project protitability. IT the preliminary analysis results show ‘optimistic returns, you can proceed 10 the next SEP. 2. Calculate the estimated income Work with the preliminary study results to predict the expes ted income that the product oF veevioe is likely to generate when sold in the target market, “Then calculate the overall cost SRvelopment. This includes the expenses for manufacturing the product. along with paying any debts taken for production ‘and continuing regular business operations. If the project tnoome is more than the overall cost of production, then you can proceed to the mextsteP the feasibility study. 3, Doa market surveyThe project approach This involves the tline of the planned approach to tackle the project. , Paconreended ‘course of action to achieve the objectives of the project. It is good practice to include more than one approach so that the stakeholders can choose the most viable option Evaluation In this step, assess the costeffectiveness ofthe different approaches. You are also required to Provide an estimate of the project's total cost and compare it with the expected revenues, ‘Additionally, you can highlight the strengths and weaknesses of each approach, Final review The final step of the feasibility study is to provide a formal review of the various elements completed until now. The assessment helps the stakeholders arrive at a final decision about whether it is technically feasible and economically justifiable to proceed with the plan. Best Practices For Conducting A Technical Feasibility Study Here are some points to remember while writing a detailed feasibility report * Use the available tools ar nd templates to help you collate and gather accurate information. * Gather feedback and suggestions from all stake! holders, including clients, product designers, developers and other team members Ask technical questions to the core team members to investigate and get reliable data * Tpossible, outsource the market survey to a market esearch team with experience and expertise in the field. * Break the study into differes Tt Parts and evaluate the information you collect Separately in each stage, Collate the feedback from each stage and develop the final review without any bias. Commercial feasibility«the amount of investment you reauite to bring your innovation to the market; + Your approach to secure the required investments «your commercialization stratesy and your revel Environmental Feasibility Study r ind analyzed FS) uses information gathered and analyzed during sn wyaluate potential remediation alternates ‘fective option, preferably one that ‘An Environmental Feasibility aaeal Investigation phase to design and Hn Ferrata Superfund sites. The goal is t find he most e permanently eliminates or reduces ‘contamination. New York State Department of Bnvironmental Conservation staff and responsible parties work together whenever possible. If you're a site owner, iS important that you participate ig this decision-making process because the Sventual corrective plan will affect you directly, especially when it comes to site operations ‘and remedial costs. “The environmental feasibility study considers both human and environmental health factors. “The FS is a comparative process that looks at all potential solutions, then evaluates them against specific criteria to ultimately find the best ‘choice. The process follows these officially-mandated steps: 4s Establish Remedial Action Objectives (RAOs) » Peelop General Response Actions (GRAs) to meet the oblectivs «Plenty and evaluate potential remedial technologies based on GRA. Sometimes this requites collecting additional Field data or testing alternatives ro determine usefulness for this particular site. «Develop a range of viable alternatives that meet the objectives, including «Treatment to address principal threats. «Engineering controls. + Institutional controls. «Limited action. % Aco action” option to assess other alternatives against + Eliminate alternatives less likely to produce desired results. 2 Further analyze remaining alternatives to determine: + Overall protection of public and environmental health Effective reduetion of hazardous waste toxicity, mobility and volume. . age i ST Is . otential consequences of the remediati cess its + Implementation and technical re Process sel + Statutory compliance. + Public opinion. © Cost.A market survey helps determine the realistic revenues the project is likely to earn. The market stady has to be in-depth and includes various steps like: + Identifying ‘the right market: It involves analysing the demographic factors, the average disposable income of the target market, cultural aspects of the audience and how these factors determine the success of the product/service. + Comparing similar offerings: Identify the pros and cons of each product on your list. Compare pricing, quality, customer feedback, marketing strategies, and more to decide if your product/service addresses a specific need that is missing in the market. + Estimating the scope of expansion: Determine if the market offers expansion opportunities for launching new produets or services down the line. See if there is an opportunity to expand to nearby markets based on the feedback from the survey respondents. Based on the market survey results, you can decide whether the project is feasible to generate the predicted revenues. If the survey results are positive, you can move on to the next step of the feasibility study. 4. Prepare a business plan A business plan explains the project in detail. It outlines the raw material requirements and the planned product launch schedule and has a step-by-step plan on the expected costs at each step of the project and how to manage them. The critical elements of the business plan include: + Executive summary © Organisational chart ‘+ Materials, supplies and equipment + SWOT analysis + Labour costs + Facility costs + Overheads, including utilities, taxes, and insurance + Marketing and merchandising costs 5. Build a day-one project balance sheetigs and assets of the project sjabilities and assets 0! on launch . ve sheet lists the jude the following: day “The day-one project ever o ake sue vo inl before it stars £e™ , cot’ inital capital investment, Land, building and equip 4 assets like the Ps os ike ent oan eave and margins for receivables liabilities 4g: Review the ata and decide piled in the previous steps 10 determin ifthe | Pi clear picture ofthe overall risks and costs vommence work on the project. Here are . yor a project is sill feasible. The review provides helps decide whether it is tech three questions to ask during Does the Feasibility study determin’ whether the project guarantees the minimum expected ROI? Do the potential rewards (income, market share, scope of growth) outbalance the risks (monetary investment, energy, time)? «Does this project have growth potential? Ir the answer is 'yes' to all three questions, you can arTive at the conclusion that the projectis technically feasible and economically justifiable What To Include In A Technical Feasibility Study Report? ‘Once you compete the feasibility study, itis common to present a detailed report manager, senior leaders or clients If you are responsible for writing a technical feasibility report, include the following information in it The scope of the project sa en eee ofthe poet a ts objetves A well-defined scopes he accuracy of the feasibility study. Al ts of the business that directly or indirectly affect the current arject Tso Mdantfythepars? ‘The technical requirements of the project The next step incl 3a ep includes all the technical requirements to achieve the project's objest¥ be by listing all ava all avilable resources, including personnel and equipment. Thee. list Yo age additional resources th fe the project a onal *s that the as ba i¢ team has to procure to complete the project 48 Pe theBy analyzing all these factors, officials, scientists and responsible parties can identify the alternative that is most likely to provide a comprehensive remedial solution, Based on this decision, the NYSDEC creates a Proposed Remedial Action Plan and offers it as a recommendation for public comment Socio Economic Socioeconomics (also known as social economics) is the social science that studies how economic activity affects and is shaped by social processes. In general it analyzes how modern societies progress, stagnate, or regress because of their local or regional economy, or the global economy, “Socioeconomics” is sometimes used as an umbrella term for various areas of inquiry. The term “social economics” may refer broadly to the "use of economics in the study of society". More narrowly, contemporary practice considers behavioral interactions of individuals and groups through social capital and social "markets" (not excluding, for example, sorting by marriage) and the formation of social norms. In the relation of economics to social values. A distinet supplemental usage describes social economics as "a discipline studying the reciprocal relationship between economic science on the one hand and social philosophy, cthics, and human dignity on the other" toward social reconstruction and improvement o as also emphasizing multidisciplinary methods from such fields as sociology, history. and political science. In criticizing mainstream economics for its alleged faulty philosophical premises (for example the pursuit of self-interest) and neglect of dysfunctional economic relationships, such advocates tend to classity social economics as heterodox. Socioeconomic factors of environmental change The socioeconomic system at the regional level refers to the way social and economic factors influence one another in local communities and households. These systems have a significant impact on the environment through deforestation, pollution, natural disasters, and energy production and use. Through telecoupled systems, these interactions can lead to global impact. Local economies, food insecurity, and environmental hazards are all negative effects that are a direct outcome of socioeconomic ‘systems. Deforestation Deforestation is a major cause of environmental change. Deforestation can be attributed to Population growth, change in household dynamics, and resource management. Forests are traditionally owned by the state and control resource management which means their Bovernment is responsible for the development of forested land. Between 1970 and 2011, tree coverage decreased by 20.6%, The decrease can be attributed to community development and increased use of resources. The issue of deforestation is contributing to climate change because the wood is frequently burned and used as timber fuel which emits C02 into the atmosphere. Deforestation is also happening due to population growth and the expansion of farmland which creates feedback loops. When forests are cut down to begin agriculture practices, soil degradation often takes place and leads to further issues like declining crop yields, which can contribute to food insecurity and contraction in the economy,rats and vegetation is significantly ir habit sorestation, anima often os efoestation happens because Not only are Due to . Habitat rossi common previously inhabited suffer extreme soil erosigg decrease, Ham down, but te aNd yeraee Animals struggle to Survive is further sesh nent ee ons I hindered due t0 high ee reause they depend en te ‘a ces tothe thei ogy ‘economies are affected vies Modern medicine isal seer toes of thewe in becaie markets and feed thet aired from plants found in these q ft resourses nl medicines are derive artes who depend on these natural resources, sever ‘come to local comm A enero of inc has ee ave a global effect by creating profi Pollution / aifeced small fishing cornmunities around the wold tg, ffects on ocean life. Fish absorb mercury ning which makes them toxic to eat. Food Insecurityisg Ine life because small coastal communities depend oy ies produce this pollution as a spillover he surrounding communities. ! ocean pollution has massively the ocean water gets polluted, 1 mining and fossil fuel bu of toxic mar 1 markets. Big compani which then affects tI it has a range of ef from coal socioeconomic impact fishing to drive their local system, which affects the fish, Natural disasters Natural disasters are becoming more severe as the environment is shifting. In the Westem hemisphere, landslides are becoming more prevalent and severe. As communities continue to expand and develop, landscapes are disrupted by human interactions and unstable hillside areas begin to crumple under these pressures. These effects can be responsible for habitat loss for animals, home loss for humans, and complete destruction of industrial establishments. This can affect local economies just as any other natural disaster because disrupts the entire flow of communities. They can be divided into private and publig, for mace a highway being demolished by a landslide would be considered a public cost. Crean tatlestat of its crops due to a landslide would be considered a private cost. | uta leforestation are primarily responsible for the increasi berof | landslides in small communities. sing number ol | i : ] HouseholdsConclusion Deforestation, natural disasters, pollution, and energy consumption explicitly exhibit how human and natural systems are integrated systems. They are influenced by government Policies and contextual factors which often have a more negative impact on the environment. Human interactions with the environment create a domino effect. These socioeconomic systems are all interconnected and produce effects from the local level, all the way up to the global level. Managerial and Financial Analysis Managerial Analysis: Managerial decision analysis refers to the process by which managers use their managerial responsibility of decision making to solve complex problems. As part of the managerial decision analysis, a manager may make decisions under certain types of circumstances. Key Behaviours of Managerial Analysis: * Identifies and gathers necessary and accurate information needed (via case studies, etc.) to clarify an issue or make a decision * Assesses problems accurately, and arrives at solutions that improve the efficiency and effectiveness of resources and operations. * Conducts benchmarking and best practices research. * Accurately interprets study results. * Understands management and organizational principles pertaining to areas of responsibility (e.g., delegations of authority, administrative procedures) in order to plan and conduct complex studies to assess organizational operations * Identifies sources of information/data for a wide variety of problems and needs. Financial Analysis: Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enoulf conducted internally, financial analysis can help fund managers make future business decisions or review historical trends for past successes. if conducted internally, financial analysis can help fund managers make future business decisions or review historical trends for past successes. wy * If conducted externally, financial analysis can help investors choose the best possible investment opportunities. , * Fundamental analysis and technical analysis are the two main types of finan analysis i i mine the * Fundamental analysis uses ratios and financial statement data to deter intrinsic value of a security.Iue is already determined by its price, and it ta monetary investment, ecurity's val ical analysis assumes as ‘aah! anal Jue over time.gh to warran' focuses instead on trends in val Understanding Financial Analysis et financial policy, build long-term snd identify projects or companies for investment. This is done nancial numbers and data. A financial analyst will thoroughly s—the income statement, balance sheet, and cash ducted in both corporate finance and Is, 5 Financial analysis is used to evaluate economic trend: plans for business activity, through the synthesis of fi examine a company's financial ‘statement: flow statement, Financial analysis can be cont investment finance settings. ratios from the data +t common ways to analyze financial data is to calculat > One of the mos V' iy ke in the financial statements to compare against those of other companies ‘company's own historical performance. For example, return on assets (ROA) is a common ratio used to determine how efficient a company is at using its assets and as a measure of profitability. This ratio could be calculated for several companies in the same industry and compared to one another as part of a larger analysis. Corporate Financial Analysis In corporate finance, the analysis is conducted internally by the accounting department and shared with management in order to improve business decision making. This type of internal analysis may include ratios such as net present value (NPV) and internal rate of return (IRR) to find projects worth executing. Many companies extend credit to their customers. As a result, the cash receipt from sales. may be delayed for a period of time. For companies with large receivable balances, it is Useful to track days sales outstanding (DSO), which helps the company identify the length of time it takes to turn a credit sale into cash. The average collection period is an important aspect of a company's overall cash conversion cycle A key area of corporate financial analysis involves extrapolating a company's past Performance, such as net earnings or profit margin, into an estimate of the company's future performance. This type of Ficial to i fare 'ype of historical trend analysis is beneficial to identify seasonal For ex Cora eta may see drastic upswing in sales in the few months leading up to !e business to forecast bud; i ? igets and make necessary minimum inventory levels, based on past trends Steere suchas Investment Financial Analysisapproach. A top-down approach first looks for macroeconomic opportunities, such as high- performing sectors, and then drills down to find the best companies within that sector. From this point, they further analyze the stocks of specific companies to choose potentially successful ones as investments by looking last at a particular company's fundamentals. A bottom-up approach, on the other hand, looks at a specific company and conducts a similar ratio analysis to the ones used in corporate financial analysis, looking at past performance and expected future performance as investment indicators. Bottom-up investing forces investors to consider microeconomic factors first and foremost. These factors include a company's overall financial health, analysis of financial staternents, the Products and services offered, supply and demand, and other individual indicators of corporate performance over time. Types of Financial Analysis fundamental analysis and technical analysis. There are two types of financial analy: Fundamental Analysis Fundamental analysis uses ratios gathered from data within the financial statements, such as a company's earnings per share (EPS), in order to determine the business's value. Using ratio analysis in addition to a thorough review of economic and financial situations Surrounding the company, the analyst is able to arrive at an intrinsic value for the security. The end goal is to arrive at a number that an investor can compare with a security's current price in order to see whether the security is undervalued or overvalued. Technical Analysis Technical analysis uses statistical trends gathered from trading activity, such as moving averages (MA). Essentially, technical analysis assumes that a security's price already reflects all publicly available information and instead focuses on the statistical analysis of price movements, Technical analysis attempts to understand the market sentiment behind price trends by looking for patterns and trends rather than analyzing a security’s fundamental attributes, Examples of Financial Analysis Asan example of fundamental analysis, Discover Financial Services reported its fourth quarter 2021 diluted earnings per share (EPS) at $3.64. That was a significant gain from the fourth quarter of the previous year, when Discover reported a diluted EPS of $2.59. A financial analyst using fundamental analysis would take this as a positive sign that the intrinsic value of the security is increasing. With that information, analysts may raise their forecasts of the company's future performance. These consensus changes, or "estimate momentum," may be used to predict future prices.sensus among analysts for Dig 2022, the con cover, i 89, a 2.45% inc i For example, Au as raised from 13.49 t0 13 de oan 8S® O¥8 the hy 2022 estimated EPS W257 45 analysts who made predictions, 13 aig, ig January Vers d ee estimates a month prior ss and only 2 lowered them 1? hy Is Financial Analysis UseF analysis isto analyze whether an entity is stable, solve ial ‘The goal of financi Nt, li rant a monetary investment. Itis used to evaluate etn build long-term plans for business activity, and ige or Omi ftable enough to We profit = trends, set financial policy, or companies for investment. How Is Financial Analysis Done? lysis can be conducted in both corporate finance and investme Financial anal Lae analyst will thoroughly examine a company's financial statements, eat balance sheet, and cash flow statement. One of the most common, tp anaiyae finanialatats weskeulste ratios from the data in the financial compare against those of other companies or against the company’s own historiy performance. A key area of corporate financial analysis involves extrapolating 3 companys past performance, such as net earnings or profit margin, into an estimate of the companys future performance. Nt finance as atementsg What Is Fundamental Analysis? Fundamental analysis uses ratios gathered from data within the finan as a company's earnings per share (EPS), in order to deter ratio analysis in addition to @ thorough review of eco Surrounding the company, The end goals to arrive at price in order to see wheth cial statements, such mine the business's value. Using nomic and financial situations the analyst is able to arrive at an intrinsic value for the seu @ number that an investor can compare with a security sure er the security is undervalued or overvalued. Detailed Project Report A detaled rroinc (ePOrt Is aVery extensive and elaborative Outline of a project, wie rake ssentalinformation suchas the resourecs and tasks to be carried outin male fer an ito a success. tt can also be said that is the final blueprint of? mene ter which the implementation and Operational process can occur. In ths 4, famaehenve Project report, the roles and responsibilities are highlighted aloné SSH 3NY issue arises while careying out the plan, The following Point: " Yn essential role in deciding whether a project turs * Completioy rf "ofthe project within the st pulated period Priority to client Cul Project eh tio Satisfaction by delivering quality product after the ‘comp!© Completion of the project within the set limits of escalation of cost ‘The blueprint design's focus has to be to convert the corporate investment into a project idea that gives good monetary returns. A detailed project report depicts a practical viewpoint for the implementation of the project. The requirements and risks should also be highlighted in 2 detailed manner to prevent any troubles that can delay or halt the execution of the project. Hence effective measures must also be stated so that the execution of the project can be carried out hassle-free. A detailed project report must include the following information: ‘+ Brief information about the project Experience and skills of the people involved in the promotion of the project Details and practical results of the industrial concerns of the promoters of the project * Project finance and sources of financing © Government approvals ‘* Raw material requirement Details of the requisite securities to be given to various financial organizations Other important details of the proffered project idea include information about management teams for the project, details about the building, plant, machinery, ete. Detailed Project Report: Meaning and its contents A detailed project report is extremely important in order to turn the idea of your project into a reality. A DPR acts as a ladder towards success to make your project reach great heights. If the project report is prepared by putting a tremendous amount of effort into details, you will surely get good results later. Managing the budget - Managing the budget or expenditure is not an easy task, especially when you have to look at so many aspects of your project. Hence a DPR ‘comes to your rescue and helps your plan and manage your budget in such a manner that you do not go over your set budget. Minimizing risks - Sometimes, despite giving great attention to details, risks, and issues arise during the implementation of the project. Hence it is crucial to identify and reduce these risks as much as possible so that the project is implemented without any hassles. Itis reporting the risks to the project manager before the implementation that makes room for improvement. Project progress follow up - One of the mast important aspects of a detailed project Teport is to have a control on the project progress. Accordingly, of the schedule of the project and eliminate the problems, if any. Holdover the project - Project reporting maintains hold of the higher authority, such as managers, over the project so that they can keep a check on progress and eliminate factors that cause a halt in the progress of the project. The performance of the team members and their quality of work is also checked, one can keep trackA detailed project report has innumerable benefits in order to drive a project towards the Path of success. Hence it is vital to get a DPR prepared from an experienced person/firm that holds relevant experience and skillset to leave no stone unturned. It is also important that the person who is a part of the team for the project has relevant expertise in the field SO as to take up the task of handling the project. Putting the DPR's preparation task into the hands of an inexperienced person can also cause you to lose a lot of money, so choose wisely. Resource Survey Survey of resources means the documentation, by historical research or a photographic record, of structures of historical interest within a specified area or jurisdiction or of existing structures within a proposed historic district. Selection of plant location Every entrepreneur is faced with the problem of deciding the best site for location of his plant or factory. What is plant location? Plant location refers to the choice of region and the selection of a particular site for setting up a business or factory. But the choice is made only after considering cost and benefits of different alternative sites. It is a strategic decision that cannot be changed once taken. If at all changed only at considerable loss, the location should be selected as per its own requirements and circumstances. Each individual plant is a case in itself. Businessman should try to make an attempt for optimum or ideal location. What is an ideal location? {An ideal location is one where the cost of the product is kept to minimum, with a large market share, the least risk and the maximum social gain. Itis the place of maximum net advantage or which gives lowest unit cost of production and distribution. For achieving this, objective, small-scale entrepreneur can make use of locational analysis for this purpose. LOCATIONAL ANALYSIS Locational analysis is a dynamic process where entrepreneur analyses and compares the appropriateness or otherwise of alternative sites with the aim of selecting the best site for a given enterprise. It consists the following: {a) Demographic Analysis: It involves study of population in the area in terms of total population (in no.), age composition, per capita income, educational level, occupational structure etc. (b) Trade Area Analysis: It is an analysis of the geographic area that provides continued clientele to the firm. He would also see the feasibility of accessing the trade area from alternative sites.(€) Competitive Analysis: It helps to judge the nature, location, size and quality of ‘competition in 2 given trade area. (6) Traffic analysis: To have a rough idea about the number of potential customers passing by the proposed site during the working hours of the shop, the traffic analysis aims at Judging the alternative sites in terms of pedestrian and vehicular traffic passing a site: {e) Site economics: Alternative sites are evaluated in terms of establishment costs and ‘operational costs under this. Costs of establishment is basically cost incurred for permanent Physical facilites but operational costs are incurred for running business on day to day basis, they are also called as running costs, SELECTION CRITERIA ‘The important considerations for selecting a suitable location are given as follows: a) Natural or climatic conditions. b) Availability and nearness to the sources of raw material, ©) Transport costs-in obtaining raw material and also distribution or marketing finished Products to the ultimate users. €) Access to market: small businesses in retail or wholesale or services should be located within the vicinity of densely populated areas, €) Availability of Infrastructural facilities such as developed industrial sheds or sites, link roads, nearness to railway stations, airports or sea Ports, availability of electricity, water, Publi tities, vil amenities and means of communication are important, especially for ‘small scale businesses. £) Availability of skilled and non-skilled labour and technically qualified and trained managers. 8) Banking and financial institutions are located nearby. 5) Locations with links: to develop industrial areas or business centers result in savings and Cost reductions in transport overheads, miscellaneous expenses entrepreneur to choose a particular location are made available. Positive includes cheap overhead facilities lke electricity, banking transport, tax relief, subsidies and liberalization, Negative incentives are in form of restrictions for setting up industries in urban areas for easons of pollution control and decentralization of industries. K) Residence of small business entrepreneurs want to set up nearby their homelands, Project contractsxprone contract is a legal agreement between two parties that will be working on 2 ject that outlines the obligations, duties, res. , duties, and expectations of both parties. It's imperative to have a project contract in placé when starting any new work with an outside anne Project contracts typically include information about timelines, fees, deliverables, dispute resolution, and more. A well crated agreement will make sure both parties have full transparency on their expectations and duties to contribute to a successful project. Common Sections in Project Contracts Below isa list of common sections included in Project Contracts. These sections are linked tg the below sample agreement for you to explore. + The Work © Contract Documents © Total © Contractor's Fee © Cost of the Work '* Costs Not to be Reimbursed Financing Arrangements © Payment © Contract Times = Changes ‘Site Investigation ‘¢ Claims for Damages * Delay «Contractor's Payment Obligations © Liens Warranty © Defective Work © Cleanup « Site Access «Permits and Inspections @ As-Built Drawings © Owner's Construction and Separate Contracts «Safety and Environment © Compliance with Laws «Independent Contractor * Subcontracts © Assignment « Aesthetics Intentionally omitted * Ownership of Drawings and Specifications Indemnity© Limitation of Liability © Title and Risk of Loss Contractor's Insurance Obligations (Owner's Insurance Obligations ‘* Owner's Failure to Pay Termination and Cancellation © Force Majeure © Exclusivity ‘© Dispute Resolution © Governing Law; Forum; Attorney Fees Insurance of Projects The Risk All major projects and investments present great opportunities, but also harbor risks. The ‘management of risk in construction projects involves both the allocation of risk under the project contracts and the management of those risks through insurance. The ability to recognize and overcome risks is crucial to the success or failure of a project. Many a times, it becomes a highly complex exercise in view of the large number of exposures and intricate networks and dependencies involved in such projects. Losses are often not attributed to one single cause. Asa rule, there are always several combined factors that lead to a loss event. In many cases, planning errors and omissions or lack of due care and diligence during construction work / erection work is responsible for losses in difficult geological conditions. The potential risks can be categorically divided into three groups: + Physical Assets Protection + Design Engineering Risks ‘+ Management Liability + Financial Market and Economic reforms The Solution Project insurance should cover ‘All risks’ of loss or damage to the permanent and temporary works comprising the contract, including the materials, and all things used for or intended for incorporation within the contract, throughout various Phases of the construction / erection, including testing, The Cover ‘The following points need to be considered for Project Insurance:ill be fi fter the unloading of the property from | am ots site and shall con until immediately after the first test Joading is conclud is earlier) | «The perio any conveyance a operation or test ‘The policy should include cover for Desi! consequences of the damage, but will excl design improvement cost. should be automatic rel over the cost of wn Defect. This will c part itself and any Jude the defective Jnstatement of cover: some are sub-limited) vis-a-vis 50/50 held covered at terms to Be agreed, | tions, public authoritiesand | + There «The policy also co! clause, a 72 hour cl debris removal, profession: expediting expenses. drawings and contract documents Jost ina claims event, fed in the sum insured; ntains other extensions (: Jause, extensions of tim al fees, plans and specific «Cost of reproducing plans, inso far as they are includ «Clean-up costs resulting from an indemnifiable [055 which would include costs Of removing and disposing off debris, demolition and feinforcing the insured property; «Additional costs incurred for overtime, work on Sundays or public holiday ete; | «Offsite storage upto the agreed limit of indemnity, the project should be specifically covered for «Terrorism is a standard exclusion, well as International market, terrorism and this is avaitable in the Indian as Exclusions The standard exclusions typically include: + Loss or damage due to war or similar events «Strike or riot (this can be included in certain circumstances on a case-to-case basis) + errorism risk, (this can be included in certain circumstances on a case-to-case basis) + Damage due to wear and tear + Inherent defects + Damage due to nuclear energy, radioactive contamination + Willful act or gross negligence ete. Project implementation | Pr Projet implementation is the process of leliverables, otherwise known as th . takes place after the planni . the proj Si Puttir i ortuer eee plan into action to produce the | odd ax wel phase, during whi rn services, for clients or stakeholders. It resources andl a the timeline and budget i ‘i team determines the key objectives for tring . Implementati ¥ Performance to ensure the ic aan ies coordinating | 1ains within its expecte* |scope and budget. It also Involves handling any unforeseen issues in a way that keeps a project running smoothly. To implement a project effectively, project managers must consistently communicate with a team to set and adjust priorities as needed while maintaining transparency about the project's status with the clients or any key stakeholders. Why is project implementation important? Project implementation that relies on strategic planning outlined earlier in the process can help a team achieve the project objectives while staying within budget and meeting relevant deadlines. Implementation is the part of the project cycle that bridges the planning process and the project outcomes. This step of the process, and how well it's executed, can ultimately determine the success of a project. During the implementation phase, a project manager establishes how closely the team is meeting the project objectives, making changes as necessary to keep the project on track. Implementation allows project managers to take control of a project and empower the team to reach common goals, building trust and transparency among those directly involved with the project. How to implement a project There are several steps involved in implementing a project, including some planning that ‘must occur before the implementation can begin. Here is a list of steps for implementing a project effectively: 1. Assess the project plan In the first phase of the project cycle, it's beneficial to establish a plan that meets the expectations of management, clients and key stakeholders. Before implementing a project, assess the plan and make sure that everyone on the team understands the project deliverables. The project manager may want to hold an initial meeting to outline everyone's assigned roles and the expected timeline, as well as any project milestones that a team works toward in the implementation phase. This initial step can help to unite the project team and set a collaborative standard for work. 2. Execute the plan With a plan in place and expectations set for the team, it’s time to start work on the project. During this step, project managers want to have regular discussions with the team about their progress. Measure the project's timeline against the projected schedule and monitor resources to ensure the team has what they need to complete the project successfully Communication is instrumental during this part of the process to keep the team aware of the project's priorities. i's also important to provide regular progress updates to the clients or key stakeholders to remain transparent about the progress during this step. 3. Make changes as needed| | During any type of project, it's likely that a project manager needs to make changes during implementation, such as to address additional requests from the client or to keep the project within its scope. Make these adjustments as necessary, relying on the project plan to identify solutions. Continue to communicate with the team, asking questions to determine areas where they need more support. Be prepared to allocate more staff or resources if a project deviates from the plan. Change is 2 reality for many sprue and how effectively a project manager implements those changes can affect the project's outcome. 4, Analyze project data “Throughout the implementation phase of a project, it's important to analyze data consistently to measure how a project is progressing against the initial projections. You can use specific project management software or a manual system to compile data related to staffing, resources and budget. Examine the data and determine if there are other areas where it would be beneficial to implement additional changes to help a team meet the initial project expectations. If so, go back to the previous step and make those changes, continuing to gather additional data to assess the project variables. 5. Gather feedback Once the team has completed the project deliverables, there are still some essential steps left in the process. Gather feedback from the project team, clients and stakeholders about the project's outcome, assessing what parts of the project went according to plan and what areas the team could improve in the future, You can have direct conversations with those involved in the project to get this feedback, or you may find it helpful to send out a short survey asking for input. This step can help companies make continual improvements to ensure the successful completion of future projects. 6, Provide final reports In the last part of the implementation phase, provide reports to the project team, clients and stakeholders outlining how the project performed against the projected budget and timeline. Explain any areas where you needed to make changes to keep the project within its scope and budget. These reports include the applicable data related to the project's budget, time and resources. This step gives companies the chance to reflect on the successes of the project and identify any improvements needed for the future, which can have long-term benefits for the project management cycle Estimating project time and cost What is project estimation? Project estimation is the process of forecasting the time, cost, and resources needed to deliver a project. It typically happens during project initiation and/or planning and takes Project's scope, deadlines, and potential risks into account. 1, Top-Down EstimationThis estimation technique involves setting a project budget and then dividing it up between different stages or tasks. Then you can gi 'uess whether there's enough money allocated to each section and make adjustments as needed, according to The Di | Project Manage he amount a client's willing to pay Businesses use this technique early in a project to see if t isnot only enough to cover costs but make a profit. Disadvantages: Not accurate at all. You're allocating the budget based on guesses. This estimating method also doesn’t account for possible changes in the project and its budget, 2. Bottom-Up Estimation Bottom-up estimation is similar to to} P-down estimation in that you're estimating a project according to stages or tasks, But in this technique, you're doin, 'g SO with a lot more information on hand. You also have a full understanding of the require: ments of the job. Each section is estimated individually and then summed up to determine the total cost of the project. Bottom-up estimation is done late in the estimation process when the scope and components of a project are clear. ‘Advantages: The most accurate project cost estimation technique. And because it’ detailed, you can easily check project costs a; You're on budget. You can also check against estimated timelines to ensure everytl track. A bottom-up estimate will help you manaj complete it on time and on budget. s very gainst the estimate later on to make sure hing’s on 4ge your project when it’s in progress and Disadvantages: Time intensive to prepare for staff and r. to do site visits. You also need plenty of information aby Project, which can be difficult to obtain. Costs can also technique because it’ work for accuracy. equires plenty of resources like gas out every stage and task in the be overestimated using this 's so detailed, Use analogous estimation (see below) to check your 3. Analogous Estimation This is a type of estimation where you base a new project budget off an old one. If you dida Toofing job on a similar house three months ago and it cost $2000, you could reasonably assume your new roofing project would cost about the same. I'S a ballpark type of estimating similar to the top-down technique. This estimation technique only works if your previous projects are similar to your new one or the estimate won't be accurate. ‘Advantages: Quick and simple to do and doesn’t require a ton of information about the current project. A great technique when all you need is a rough number.similar but never alike, making it ‘ate. Two projects might be he data from your old project figures to another. Plus, t s the case. Disadvantages: Not very accur difficult to transpose one set oF needs to be accurate, which isn’t alway: 4, Parametric Estimation technique than top down or analogous estimation ifyou timation is a project management estimation evious project, but adjusts for variables. This isa slightly more accurate want a ballpark project cost. Parametric es technique that bases a new project on a pr st on accounting in the past for $100. you wrote 2 500 word blog po: g. 1500 is wolves writing a 1500 word blog post on accounting So $100 x 3 = $300 total project cost. + For example, Your new project in three times more words. Advantages: I's the most accurate ballparking technique as it accounts for different requirements in a new project. ard to find data to manipulate for digital projects. For example, Disadvantages: It may be hi ‘another similar one has 20. Do you simply double the ‘one website project has 10 pages, project cost? will this be accurate? 5, Three Point Estimation from ballpark estimating techniques and into ‘ts. This method involves taking an average of three nario and most likely scenario. ‘Three point estimation moves awa establishing more accurate, realistic cos scenarios: best case scenario, worst case sce! Here’s a simple formula: (Best + Worst + Most Likely Estimates) / 3 = Expected Estimate «For example, a lawyer believes a project will cost $1000 in the best case scenario and §1500 in the worst case scenario, with $1200 being the most likely figure. ‘0 ($1000 + $1500 + $1200) / 3 = $1233.33 expected estimate You can adjust the formula to weight different scenarios, as well. «For example, the lawyer actually believes that the project is more likely to end up with the worst case scenario. She wants to give more weight to the worst case scenario estimate in the formula, ° Asien weights and multiply by estimate: $1000(1) + $1500(2) + $1200(1) = © Add together your weights: 1+2+1=4 © Divide first number by second: 5200 / 4 = $1300 expected estimate Advantages: Deliv B /ers a more accurate estimate as it allows for unexpected problems in the project, which reduces your risk as a small company. Disadvantages: Tak ir ‘1 ‘es more time and is a more complicated technique to learn. pnHow Do You Estimate Costs for a Project? You can estimate costs for a project by hand or by typing something up quickly. But to help with accuracy, especially in more complex Projects, you'll want to use a project estimation tool or template. Below are some examples: Excel, Word or Google Sheets. Change “quote” to “estimate” in the below templates: © Price Quote Template (Excel) © Service Quote Template (Word) © Price Quote Template (Google Docs) * Cloud Accounting Software. FreshBooks has an estimates function that helps you uickly plug your costs into a professional template that you can email to your client. on the spot. * Simple Estimate. Estimate costs without spreadsheets, ideal for the beginner. + Web Development Project Estimator. Made just for web developers. Estimation tools specific to construction: * Construction Estimate Template from Microsoft Office (it says proposal, but it’s essentially a detailed estimate) * £2sy-Pro Builders Estimator. It has different worksheets for different trades and automatically calculates labor and materials costs and taxes (by country). It’s a great option for a small company. * Building Calculator. This free app works on all devices and assists in calculating the amount of materials you'll need for a project. * All:in-One Calculator Free. This free Android app helps you do construction-related calculations. Get more specific templates in this article about quotes, How Do You Estimate Time for a Project? Here are six techniques to estimate time for a Project: 1. Break down the project into activities and then further into smaller tasks, then estimate each task. 2. Take a look at similar projects you've done in the past and how many hours they took. Then calculate the average. For example, project one took 5 hours and project two took 10 hours. (5410) /2= 7.5 average hours 3. Take past project timelines and adjust them for differences in the new Project.‘cant experience in your field. Or you | for you, says the Houston | ve sig! jou hai erent. Maybe YOu Nav mation ud 4, Use your judg alist to could consider hiring a spec Chronicle. roject, a useful method ‘Add labor time plus time required to get materials for the p' for general contractors and tradespeople. ages per web o 6, Estimate based on unit. This could be words per blog See pradlibe wach unitcna , per product produced. Estimate how many hours it tal ‘ multiply by how many units are required for the projec: Cost of Capital d the cost of equity. ‘The cost of capital for a project is a weighted sum of the cost of oO vctetl cash fons The cost of capital is often used as the discount rate, the rate at wi " proj discounted to find the present value or net present value of a project. Costofcaprtal = (Returnondebt)-(shareofdebt) +(Returnonequity)-(shareofequity) Source of finance Asource or sources of finance, refer to where a business gets money from to fund their business activities. A business can gain finance from either internal or external sources. Internal sources of finance Internal sources of finance refer to money that comes from within a business. There are several internal methods a business can use, including owners capital, retained profit and selling assets. Owners capital refers to money invested by the owner of a business, This often comes from their personal savings. Personal savings Is money that has been saved up by an entrepreneur. This source of finance does not cost the business, as th, charges applied. ere are no interest Retained profit is when a business makes a profit, it can leave some the business and reinvest it in order to expand. This source of financ interest charges or require the payment of dividends, which can ma or all of this money in . does Not incur 2 ita desi of finance. a desirable source Selling assets involves selling products owned by the business. This m, either a business no longer has a use for the product or they need to Business assets that can be sold include for example, machinery, stock. ay be useg when ‘ raise money quickly. ‘Auipment, ang excess External sources of financeExternal sources of finance refer to money that comes from outside a business. There are several external methods a business can use, including family and friends, bank loans and overdrafts, venture capitalists and business angels, new partners, share issue, trade credit, leasing, hire purchase, and government grants. Family and friends - businesses can obtain a loan or be given money from family or friends that may not need to be paid back or are paid back with little or no interest charges. Abank loan is money borrowed from a bank by an individual or business. A bank loan is paid off with interest over an agreed period of time, often over several years. Mo and Emma calculate interest on bank loans Overdrafts - are where a business or person uses more money than they have in a bank account. This means the balance is in minus figures, so the bank is owed money. Overdrafts should be used carefully and only in emergencies as they can become expensive due to the high interest rates charged by banks. Venture capital and business angels - refers to an individual or group that is willing to invest money into a new or growing business in exchange for an agreed share of the profits. The venture capitalist will want a return on their investment as well as input into how the business is run. New partners - is when an additional person or people are brought into the business as a new business partner. This means they would provide money to then own part of the business. Share issue - a business may sell more of their ordinary shares to raise money. Buying shares gives the buyer part ownership of the business and therefore certain rights, such as the right to vote on changes to the business. Atrade credit must be agreed with a supplier and forms a credit agreement with them. This. source of finance allows a business to obtain raw materials and stock but pay for them at a later date. The payment is usually made once the business has had an opportunity to convert the raw materials and stock into products, sell them to its own customers, and receive payment. Leasing - is a way of renting an asset that the business requires, such as a coffee machine. Monthly payments are made and the leasing company is responsible for the provision and upkeep of the leased item. Hire purchase - is used to purchase an asset, such as a delivery van or piece of equipment. A deposit is paid and the remaining amount for the asset is paid in monthly instalments over a set period of time. The business does not own the item until all payments are made. Government grants - are a fixed amount of money awarded by the government. Grants are given to a business on the condition that they meet certain criteria such as providing jobs in areas of high unemployment. These do not usually need to be paid back.What are the main sources of finance? The five sources of finance are: «Assistance by the Government. + Commercial Bank Loans and Overdraft. «Financial Bootstrapping. « Buyouts. + Personal Investment or Personal Savings. Cost control ing business expenses to increase profits, | Cost control is the practice of identifying and reduci he company's actual and it starts with the budgeting process. A business owner compares t financial recults with the budgeted expectations, and if actual costs are higher than planned, management has the information it needs to take action. ‘As an example, a company can obtain bids from different vendors that provide the same product or service, which can lower costs. Cost control is an important factor in maintaining and growing profitability. Corporate payroll, for example, is often outsourced, because payroll tax laws change constantly, and employee turnover requires frequent changes to payroll records. A payroll company can calculate the net pay and tax withholdings for each worker, which saves the employer time and expense. KEY TAKEAWAYS. © Cost control is the practice of identifying and reducing business expenses to increase profits, and it starts with the budgeting process. «Cost control is an important factor in maintaining and growing profitability. «Outsourcing is a common method to control costs because many businesses find cheaper to pay a third party to perform a task than to take on the work sie cheaper within the Cost Control Understanding Cost Controls Controlling costs is one way to plan for a target net income, which is com following formula: Puted using the Sales - fixed costs - variable costs = target net income ‘Assume, for example, that a retail clothing shop wants to earn $10,000 in net $100,000 in sales for the month, To reach the goal, management reviews pote income from fixed andvariable costs and attempts to reduce the expenses. Inventory is a variable cost that can be reduced by finding other suppliers that may offer more competitive prices. Itmay take longer to reduce fixed costs, such as a lease payment, because these costs are usually fixed in a contract. Reaching a target net income is particularly important for a public company, since investors purchase the issuer’s common stack based on the expectation of earnings growth over time. Outsourcing is used frequently to control costs because many businesses find it cheaper to pay a third party to performa task than to take on the work within the company. Cost Control and Variance Analysis at Work A variance is defined as the difference between budgeted and actual results. Managers use variance analysis as a tool to identify critical areas that may need change. Every month, a company should perform variance analysis on each revenue and expense account. Management can address the largest dollar amount variances first, since those accounts are most likely to have the biggest impact on company results. If, for example, a toy manufacturer has a $50,000 unfavorable variance in the material expense account, the firm should consider obtaining bids from other material suppliers to lower costs and eliminate the variance moving forward. Some businesses analyze variances and take action on the actual costs that have the largest percentage difference from budgeted costs, Why Is Cost Control Important for Businesses? Ina competitive marketplace, the low-cost producers are the ones that can earn the highest profits. Reducing costs is therefore a key objective for most businesses since it increases both efficiency and profitability. What Types of Costs do Businesses Incur? In general, business costs can be categorized as fixed vs. variable and direct vs. indirect. + Fixed costs are those that do not change, such as rent or insurance payments. Variable costs will change with productivity such as wage labor or energy usage. Direct costs are those involved with production or operations, such as costs of raw materials, Indirect costs include things like overhead, which are not directly related to the business's core operations. How Can Households Implement Cost Controls? Cost controls are often associated with increasing the operating efficiency of a business; however, individuals and households can also benefit from such strategies to increase savings and cash flows. Establishing and sticking to a budget is one key strategy. Shoppingrices down. Look to d comparing competitors’ prices is another way feep Np ae round and comps keep when items are on sate and consider second-hand goods if P : Project Scheduling and monitoring Project Scheduling: you to create a schedule that you can use to keep track of tasks and deadlines within a project. Typically, project schedules come in the form rack of Ya calendar or a timeline. While scheduling a project, i's important that you estimate the carta sks and project phases to make sure the project d end dates for individual ta: 5 aerrnces at the desired speed. You can do this by carefully considering different project milestones, activities and deliverables, which may impact task duration, budget and Project scheduling is a process that allows resource allocation. Why is project scheduling important? Establishing a project schedule is important because it allows you to organise all information that could potentially impact your project's outcomes. By maintaining a centralised data repository of your project plan and giving your team access to it, you improve the communication between all relevant parties, including project managers and stakeholders, Breaking projects into individual tasks is essential in the task prioritisation process. By listing all tasks that the team is about to perform, you can easily determine their criticality. Scheduling allows all parties to be on the same page throughout the project's duration, which minimises the risk of conflicts. What are some benefits of using schedules in project management? There are many benefits of using schedules in project management, which include: + Reduced costs: While scheduling a project, you take into consideration the resources that each task requires. Having a clear outline of ali tasks helps team members use those resources more effectively, which often results in reducing costs. Reduced lead time: A project schedule clearly outlines ali ‘to do’, ‘work in progress’ and 'work waiting for next steps' tasks. Notifying team members about tasks they're about to complete or can complete simultaneously often makes them spend less time on those tasks. + Improved productivity: When creating a project schedule, you can establish and define long- and short-term project goals for the team. By providing a clear direction to all team members and ensuring they always know what to do, you can improve | their productivity and set standards for the project. | * Better risk management: While scheduling a project, you may find yourself analysing | each step and determining potential project risks. A precise project schedule allows you to predict and prevent different issues from happening, resulting in better risk management. | Planning vs scheduling |Understanding the difference between project planning and scheduling is essential to project management. Project planning requires you to define effective policies and methodologies that can help you achieve your project objectives, It takes into consideration the entire project, which is why a project plan is typically a more complex and lengthy document that contains the project aims, scope, budgeting, risks and schedule. Project scheduling consists of assigning start and end dates to individual tasks and allocating appropriate resources within an estimated budget. This is what allows you to make sure the team can complete their tasks on time. It only focuses on the tasks, their deadlines and project dependencies. A schedule is an important element of a project pian, while the plan itself is the overarching set of guidelines for all aspects of a project. How to approach scheduling a project Depending on the methodology or framework that you choose for your project, there may be different steps involved in scheduling it. There are also some methods that can apply to any project. Here are some key steps that you may consider: Start with project scope Project scope is an outline of the entire project. It usually defines all deliverables and lists different stakeholders. It also includes important project objectives, goals, tasks, costs and deadlines. Creating a project scope, also known as a ‘scope statement! or ‘terms of reference’, allows you to establish and set up procedures, standards and timelines for delivering, verifying and approving work. 2. Determine the sequence of activities an important step that Identifying project-related tasks and determining their order allows you to prioritise different activities for all team members. You may find it easier to. determine this when you establish the task dependencies, which refers to the relationships between tasks. Establishing the task dependencies allows you to see which are the predecessor tasks, which are activities that happen first, and which are successor tasks, which are activities that happen after. 3. Establish project milestones Project milestones mark important achievements in a project. Establishing project, milestones is important because it makes tracking the progress of your team easier, including tracking the use of time and resources. Project management milestones help you determine exact dates or stages that often involve budget checks, external reviews or submissions of important project deliverables. 4. Allocate the resources Resource allocation, or resource scheduling, is a process that involves identifying and assigning important project resources to different tasks. Standard project resources are the people, capital and material goods that a successful project completion requires. Typically,‘an resources, which includes everyone project are hum: plan and monitor. the most important resources in @ you're about to schedule, who's going to work on the project 5. Analyse your schedule that allows you to identify potential risks, anomalies and issues ion of a project. While analysing a schedule, it's der of tasks is logical and pay attention to different is and deadlines are realistic. This is an important step that could arise throughout the durati important that you determine if the ort task dependencies. This allows you to ensure that your goal: 6. Monitor the schedule once your project schedule gets a client's or stakeholders’ approval, it's important that you continuously monitor itas the project progresses. You can monitor a project's schedule by collecting information, making sure project teams complete tasks before their respective deadlines and quickly reacting to any conflicts that may arise in the process. You may consider using different project monitoring techniques, including team surveys, one-on-one interviews, observation or mapping. Scheduling formats for your project jormats for your project allows you to better organise Using one of the common scheduling f succeed. your work. It also helps ensure everyone knows what to do to help the project There are various formats for project schedules, including: Responsibility assignment matrix (RAM) This format allows you to organise your schedule by who completes what task. You can use the RAM format as a management tool and list deadlines next to each task to keep track of | timing, Project managers who use this format have static designations for each team member: | + responsible: the person who completes the task «accountable: the person who's accountable for receiving the completed task and beginning the next one * consulted: the person who you can consult to finish the task | * informed: the person who keeps up to date with the progress Interface Gantt chart alee ceca is a format that illustrates a project schedule and includes sentir, such as maw fe show how some tasks depend on others. Typically, the chart vanney tondiderthen iat you can click on and drag to change its start and end dates- is format if the tasks you're scheduling have complex dependencies. | Combined milestone and Gantt chart Acombined milestone 4 and Gantt chart incorporates the use of milestones to help track rogress more effect ini prog ectively. Combining these methods may provide you with a cl u with a clearerUse the right tools While the monitoring process can feel overwhelming, the right tool can defi Whether you want to use Trello, which lets you-view and combine timelines along with ‘a Gantt Chart all in one place, or something like Wrike which offers multiple, customizable Dashboards to track processes, there are many options when it comes to monitoring your ely help. projects with a dynamic tool. If you know you'll want to use more than one tool, Unito offers a streamlined solution. When projects span multiple tools, it can be tough to track performance and ensure everything’s going the way it should. With dozens of deep integrations for the market's top work management tools, Unito ensures you can monitor projects no matter what tool they're in. Effectively track KPIs Monitoring a project without knowing what you're monitoring for can be a fruitless task. To ensure the success of a project, you'll need to track some key performance indicators or KPls. These act like milestones along the course of the project and help make sure everything is on track. Recognized KPIs include your project objectives (ie. a project that is on-time and on-budget), quality deliverables (if the quality standards are being met), effort and cost tracking (resourcing and budget), and project performance (changes in the project and number and importance of issues that arose). Encourage effective communication Trying to determine a project's status, without proper communication methods is a challenge. All of your team members and stakeholders need to understand the procedures, goals, and expectations prior to the project starting — and how to communicate these to you. Whether it’s through marking a Wrike task complete or participating in weekly check-ins, it’s always a good idea to have a communications plan in place throughout your projects. Conduct a retrospective Not only does a project post-mortem let your team members air any grievances, but it provides you with valuable information you can use to fine-tune future projects. Once the project is complete, take time to schedule an hour or so to run through the project. This is where you'll reflect on any issues that arose, any deadlines that were missed, or anything else worth mentioning that came up as you monitored the project. Keep your projects going strong “x ‘1 i k No project can run effectively without the help of careful project monitoring. Keeping trac yy successful of timelines, goals, quality of work, and budget are all key responsibilities of amJjsome best practices, YOUCAN Fest asureg ni jght tools af - teal anager. Ande with the vt fied stakeholders and happy team members, . cath will be met Wi project Info! project m ‘that your project mand Documents 4 | | rmation Syste | | . pms) are system tools and techniques usedin | ment Informatio von, Project managers use the techniques and tool, through electronic and manual means i | project manager vim (PMs) isused BY upper and lower management distr to collect, combine an’ " Project Management Information Syst to communicate with each other. (pms) help plan, execute and close | system | Project Management ee ne rlonning orocess, project managers use PMIS Is oak ; pagject management 20°77 astimating costs: The Prolect Management Information for budget framewor ule and define the scope baseline. At system is also used to create @ specific sche it goals, he execution of the project management ; ‘nrormation into one database. The PMS used tO ‘compare the baseline with the actual ‘accomplishment of each activity, manage materials, collect financial data, and keep a record for reporting purposes. During the close of the project, the Project Management Information System is used to review the goals to check. if the tasks were accomplished, Then, itis used to create a final report of the project close. To conclude, the project management information system (PMIS) is used to plan schedules, | budget and execute work to be accomplished in project management. | | the project management team collects How does PMIS in project management work? Before reviewing the features of the PMIS, let's take a closer look at how a PMIS works in project management. Your PMIS functions differently based on the project phase. It aligns with the project manager's needs and helps complete the specific project phase requirements, Project initiation phase In the initiation phase of the project, a PMIS can be helpful in: . , 5 5 stablishing a preliminary project budget including cost and resource estimates * Outlining the project scope and preparing bids Schedulin; je ‘ 8 the project tasks and assigning them to the relevant team members Organizing project information and the key project stakcholders generating necessary reports for presenting (° Project planning phase Are you planning your project? A In-depth project sch PMIIS can be your best friend, assisting with: ct sched, ling, including critical path analysis and related tasksunderstanding of whether the team is meeting specific goals within the project. It's a useful format that makes it easier to report on a project's progress. Work breakdown structure (WBS) ‘The work breakdown structure is a scheduling format that breaks down the project into smaller sections to keep it manageable and organised by milestones. This format is useful when a project requires the completion of multiple tasks at once, regardless of task dependencies. Depending on your project's needs, choosing this format allows you to break down big chunks of work into small tasks that team members can complete quickly. > Project Monitoring: project monitoring (also referred to as “project monitoring and control”) comes as step four — following initiation, planning, and the beginning of execution. Once the project execution begins, project monitoring also commences. But, what exactly /s project monitoring? Project monitoring involves tracking a project's metrics, progress, and associated tasks to ensure everything is completed on time, on budget, and according to project requirements and standards. Project monitoring also includes recognizing and identifying roadblocks or issues that might arise during the project's execution, and taking action to rectify these problems. Why is project monitoring important? To put it simply, the success of a project relies on complete and dynamic project monitoring. Careful project monitoring empowers PMs to gather valuable data regarding how a project is going — and to use this data to make intelligent decisions. Some other key benefits of the project monitoring phase include: + Ensuring that tasks are being carried out according to project requirements (quality control) Letting the PM make sure important deadlines are met, Providing a thorough perspective on employee workload and capacity Allowing for project changes or remedies in case of problems * Offering clear budget tracking and adherence ‘+ Encouraging accountability from both team members and stakeholders Now that you understand what project monitoring is and why it’s beneficial, it’s time for a high-level overview of the project monitoring process. How to monitor projects In order to implement the project monitoring and control process effectively and efficiently, there are a number of commonly accepted elements involved. Project baseline confirmationBefore you actually get started with any active m: the project's scope, budget, and timeline. This helps provi throughout the completion of the project. Work monitoring and control This involves keeping stakeholders up to date as project, the quality of the deliverables, and meas metrics. Change control integration onitoring, the PM will want to understand ide a benchmark for success i | well as regularly assessing the status of the | suring these against baseline goals and ‘As you know by now, even the most organized projects can require changes now and then, You must be keeping track of resource considera the monitoring process. Ensure you're creating ai tions (budget, timeline, ete.) throughout nd recording ongoing documentation and any required follow-ups regarding project changes. Scope verification In order to keep a record and ensure stakeholders and your team are on the same page, it’s important to secure documentation related to each phase of the project's completion. This shows that the project is accepted at each stage of execution. Schedule and cost control This is where schedules and costs are monitored closely. When you think of project | Monitoring, this is most likely what you think of fi on if necessary, and budgets are consistently watched, Updates to cost and timeline estimates are made here. Quality control A project can be done on-time and on-budget, but if fi irst. Deadlines are tracked and followed-up | ‘’s not what the stakeholder wants or the quality of the work is poor, it’s of little value to anyone. Quality control is an essential Part of the project monitoring process. This is where specific project results and deliverables | are looked at in comparison to established quality are requested and made. Performance reporting collected data), Tips and best practices for project ‘monitoring Upon understanding what the you'll want to know how to best practices for the proje Project monitori best implement your ‘ct monitoring process, 'y standards. If issues are found, changes 'ng and control process generally includes, new knowledge. Here are some tips andSupporting cost and budget management, including setting up of cost controls, budget analysis, and related KPI metrics «Executing resource planning for the entire project, identifying available resources, and making a contingency plan for those that may be needed later ig baseline metrics for project schedule, cost, and scope © Establist Project execution stage ‘APMIS can be indispensable for executing projects. Since every project has multiple stakeholders within and outside the organization, tracking their conversations and responses can be challenging. The PMIS: Stores all project team communications, recommendations, files, and documents in one unified hub that can be securely and easily accessed by all stakeholders + Enables easy comparison of actual project data with the baseline estimates from the project planning phase ‘+ Allows project managers to revise cost, budget or schedule forecasts midway into the project and make adjustments based on actual project needs ‘= Supports the efficient completion of multiple project modules, such as material management, cost management, project performance measurement, and project reporting Project review and closure stage Arguably, the project review and closure is the most important phase in a project. Each project has a specific predetermined objective or goai, and in the project review and closure stage, those goals and objectives are met. The PMIS: * Allows a thorough appraisal to ensure that the defined project goals are met or exceeded Organizes and stores all project information in a centralized hub for easy access and review at a later stage ‘Archives all project information as historical data for use in upcoming projects Helps produce the final project reports and productivity analysis metrics for stakeholder decision making. Advantages of project management information system Having a project management information system can give you a leg up while managing a Project. {As you zip through successive project stages, you need a project management information system that evolves and suits your needs for each phase.ning team tasks — .d file, or plan u? Here are some of the advantage, working on a share Id do all that for yo" ‘information system You may be sending a client quote, wouldn't it be great if your PMIS cou! * of implementing a project managemen Keeps the project on track - jou avoid costly proj By tracking costs, budgets, and work schedules, YOUr pois cane on achetiuted daa slippages instant notifications and work tracking Keep the Pro} . ost project management information systems i ker. Mi ‘The PMIS also acts as a discrepancy tracl r atfieations immediately if anything does track project progress and send you text or email not go to plan. ; ; the team can instantly make any required adjustments, ‘With quick updates from the PMIS, reassign resources, and implement new processes. Once the corrective actions are underway, teams can monitor them to confirm their efficacy. The PMIS’ rapid tracking system acts as an effective competitive edge for ‘em manage projects within the budget and scheduled timeline. companies, helping th Fosters better collaboration and teamwork Imagine one team member is still using Version 1 of a document when Version 2 has already been circulated to the entire team. | Think of all the hours, energy, and effort that are being wasted. Apart from adversely affecting individual productivity, the project would lose a day or two due to the team veering off course. Plug this leakage by having a PMIS that lets you control, share, and update documentation in real time with your team members. Whenever a new document, version, or revision is released, the PMIS notifies the team about the updated version. Gives a competitive advantage Data is at the core of any project management information system. Data-driven organizations are 23 times more likely to gain new customers, leading to the likelihood of achieving above-average profitability being 19 times higher than the companies that don’t make data-driven decisions. ‘APMIS is a significant contributor to proj project management success, boost ilitie of organizations against their counterparts, ing he conan Enables higher-quality decision making Making a decision ultimately boils down to having the correct information. With a PMIS solution, teams have access to real-time data to get the ball rolling. , From detailed project processes to. Product testin key decision-makers have access to everything theymayosed hours worked by the team,