Project Planning & Analysis

Project Meaning and Concepts

A project is accomplished by performing a set of activities. For example: construction of house or commercial complex. Project is the non routine nature of activities, and each project is unique in the sense of activities. A project as an organized program of predetermined group of activities that are non routine and must be completed using the available resources within the given time limit. According to encyclopedia of management, project is an organized unit dedicated to the attainment of goal successful completion of the development project on time within budget, in conformance with predetermined programme specifications

Characteristics of a Project
Objectives : a project has a fixed set of objectives. Life span : each project has got time period. Single Entity: a project is one entity and is normally entrusted to one responsibility centre while the participants in the projects are many. Team work: a project calls for team work. Life cycle: a project has life cycle. Change: a project sees many changes through out its life. Changes can be minor or major. Made to order: a project is always made to order. Unity in diversity: a project is complex set of thousands of varieties , ( technology, materials, machines) Sub contracting: Risk and uncertainty:

Project life cycle Phase

Project life cycle and there relatives amount of Efforts and Time devoted to each phases, as the project moves through its life cycle. First Phase : Identification of the need, problem or opportunity: The need and requirements are usually written up by the customer in a document called Request for Proposal(RFP) along with associated cost and schedule. Second Phase: Development of a proposed solution to the need or problem: This phase results in the submission of proposal to the customer by one or more individual, who would like to solve problem. After customer evaluation , customer and contractor negotiate and sign a contract.

Project life cycle Phase

The Third Phase : Implementation of Proposed Solution: Involves doing the detailed planning for the project and implementing the plan to accomplish the project objectives. Different types of resources will be utilized. Final Phase: Terminating the project: Certain close out activities need to be performed, such as confirming that all the activities have been provided to and accepted by the customer, after that final payments take place. Some time feedback from the customers to determine the level of customer expectations. A project life cycle vary in length from few weeks to several years depending upon the project.

Market and Demand Analysis

The first step in project analysis is to estimate the potential size of the market for the product proposed to be manufactured. Market and demand analysis should be carried out in an orderly manner. Situational analysis and specification of objectives: Project analyst may informally talk to customers, competitors and others in the industry. It is necessary to spell out its objective clearly and comprehensively. Collection of Secondary Information. Conduct of Market Survey. Characterization of the Market. Demand Forecasting. Market Planning.

Technical Analysis
Material inputs and utilities. Location and site. Product Mix. Plant capacity. Manufacturing process. Machines and Equipments. Structure and civil works. Project charts and layout. Work schedule.

Financial Analysis
Cost of project Means of Finance. Estimating of sales and production. Cost of production. Working capital requirements. Estimates of working results. Break even point. Projected cash flow statements. Projected balance sheets.