PROJECT IDENTIFICATION AND PROJECT FORMULATION

PROJECT MANAGEMENT /QUESTION PAPER/MBA/MCOM

PERT VS CPM ( DIFFERENCE BETWEEN PROGRAMME EVALUATION REVIEW AND CRITICA...

LITTLE-MIRRLESS MODEL ( L-M APPROACH OF SCBA)/SCBA PART 3

 

• SOCIAL COST BENEFIT ANALYSIS 3
  THE LITTLE –MIRRLEES APPROACH
• DR SHASHI AGGARWAL
  
  
  
• PROJECT MANAGEMENT
• THE LITTLE –MIRRLEES APPROACH
• I.M.D LITTLE AND JAMES A. MIRRELESS HAVE DEVELOPED A MODEL KNOWN AS L-M MODEL OF  SOCIAL COST BENEFIT ANALYSIS.
• I.M.D LITTLE AND JAMES A MIRRLEES PRODUCED THE MANUAL OF INDUSTRIAL PROJECTS ANALYSIS IN DEVELOPING COUNTRIES IN 1968 FOR DEVELOPMENT CENTRE OF THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT ( OECD)

UNIDO APPRAOCH/SOCIAL COST BENEFIT ANALYSIS PART 2

 

• UNIDO APPROACH
  
  
  
•  FAMOUS ECONOMISTS STEPHEN MARLIN,AMARTYA SEN AND PARTHA DAS GUPTA PREPARED A MANUAL
• IT PUBLISHED THIS MANUAL IN 1972 UNDER THE TITLE “GUIDELINES FOR PROJECTS EVALUATION” IT BROUGHT ANOTHER MANUAL TITLED “GUIDE TO PARTICULAR PROJECT APPRAISAL” TO SIMPLIFY THE COST BENEFIT ANALYSIS OF PROJECTS FOR PRACTICAL

SOCIAL COST BENEFIT ANALYSIS PART 1

 •     SOCIAL COST BENEFIT ANALYSIS

PROJECT MANAGEMENT

•     BY DR. SHASHI AGGARWAL

•     SOCIAL COST BENEFIT ANALYSIS

•     THE MAIN OBJECTIVES OF AN INDIVIDUAL,A FIRM OR A COMPANY IN INVESTING ON A PROJECT IS TO EARN THE MAXIMUM POSSIBLE RETURN FOR  THE INVESTMENT,THE PROJECT PRMOTERS ARE SOLELY INTERSTED IN WEALTH MAXIMZATION

•     SOME PROJECTS THAT MAY NOT OFFER ATTRATCIVE RETURN AS FAR AS COMMERICAL PROFITABILITY IS CONCERNED BUT STILL SUCH PROJECTS ARE UNDERTAKEN THEY HAVE SOCIAL IMPLICATIONS. LIKE THEY ARE PUBLIC PROJECTS :

1.       ROADS,RAILWAYS,BRIDGE,TRANSPORT PROJECTS,IRRIGATION PROJECTS  ETC

2.       HERE SOCIAL CONSIDERATION PLAY A SIGNIFICANT ROLE AND THEY ARE EVALUATED FOR THEIR NET SOCIO ECONOMIC BENEFITS AND PROFITABILITY ANALYSIS OF SUCH PROJECTS IS KNOWNS AS NATIONALITY PROFITABILITY ANALYSIS.

COMMERCIAL APPRAISAL /MARKETING APPRAISAL

 

• COMMERCIAL APPRAISAL/MARKETING APPRAISAL
  
  
  
• COMMERCIAL APPRAISAL

1.       CONCERNED WITH MARKET FOR THE PRODUCT OR SERVICE

2.       PROJECT IS SET UP TO PRODUCE SOME GOODS OR SERVICES AND MARKET THE SAME TO THE CONSUMERS AND EARNING A  PROFIT

3.       MARKET APPRAISAL HAS  PRIME PLACE IN THE PROJECT APPRAISAL

4.       VERY SURVIVAL AND SUCCESS OF ANY PROJECT DEPENDS THE QUESTION AS TO WHETHER THE PRODUCT OR SERVICES OFFERED BY THE PROJECT IS SUCCESSFUL COMMERCIALLY

cost planning : tools and techniques

 

´  COST PLANNING –TOOLS AND TECHNIQUES

COST ESTIMATION

´  PREPARATION OF COST ESTIMATE

1.     PROJECT COST ESTIMATE IS REQUIRED NOT ONLY FOR ASSESSING THE FUND REQUIREMENTS

2.     BUT ALSO FOR ASCERTAINING THE ECONOMIC VIABILITY OF THE PROJECT

3.     THE ESTIMATE SHOULD BE ACCURATE

4.     IF UNDER ESTIMATED : SHORTAGE OF FUNDS

5.     IF OVER ESTIMATED ---LOWER PROFITABILITY

6.     BUT ACCURACY IS NOT IS NOT EASY

´  TOOLS AND TECHNIQUES FOR PLANNING PROJECT COST

1. EXPERT JUDGEMENT
2. ANALOGOUS ESTIMATION
3. PARAMETRIC ESTIMATION
4. BOTTOM UP ESTIMATION
5. THREE POINT ESTIMATION
6. RESERVE ANALYSIS
7. COST OF QUALITY
8. PROJECT MANAGEMENT SOFTWARE

PROJECT COST ESTIMATING : COMPONENT OF PROJECT COST

 

 

 

COST OF ESTIMATING PROJECT : COMPONENTS OF COST OF PROJECT

PROJECT MANAGEMENT

 

•     PROJECT COST ESTIMATION

1. CORRECT ESTIMATION OF THE CAPITAL COST OF A PROJECT IS THE FOUNDATION OVER WHICH FINANCIAL APPRAISAL STANDS
2. NEED FOR CORRECT COST ESTIMATION
3. IF THE COST IS UNDER ESTIMATED THE PROJECT WILL RUN SHORT OF FUNDS
4. IF THE PROJECT IS OVER ESTIMATED : DIVERSION OF FUNDS

FINANCIAL APPRAISAL

 

• FINANCIAL APPRAISAL 
  
  
  FINANCIAL ANALYSIS OF THE PROJECT
  PROJECT MANAGEMENT
• DR SHASHI AGGARWAL
• FINANCIAL APPRAISAL

1. MEANING
2. METHODS OF FINANCIAL APPRAISAL
3. TRADITIONAL AND DISCOUNTED METHODS

• SYLLABUS COVERED UNDER GROUP 1
• COVERED

a)    CONCEPT OF PROJECT AND PROJECT MANAGEMENT

b)    PROJECT LIFE CYCLE

c)    ROLE OF PROJECT MANAGER

d)    PROJECT PLANNING

e)    WORK BREAKDOWN STRUCTURE

f)     PROJECT APPRAISAL

g)    TECHNICAL APPRAISAL

 

• UNCOVERED

1. ECONOMIC FEASIBILITY
2. COST PLANNING AND ESTIMATING
3. TIME PLANNING TOOLS AND TECHNIQUES
4. FINANCIAL EVALUATION
5. APPRAISAL UNDER RISK AND UNCERTAINTY

• FINANCIAL APPRAISAL

PROJECT APPRAISAL : TECHNICAL APPRAISAL

 

• PROJECT APPRAISAL
  
  
  TECHNICAL APPRAISAL
  PROJECT MANAGEMENT
  ENTREPRENEURSHIP
• DR. SHASHI AGGARWAL
• PROJECT APPRAISAL : TECHNICAL APPRAISAL
  PROJECT APPRAISAL

1. PROJECT APPRAISAL IS A PROCESS OF DETAILED EXAMINATION OF SEVERAL ASPECTS OF A GIVEN PROJECT BEFORE RECOMMENDING THE SAME
2. THE INSTITUTION THAT IS GOING TO FUND THE PROJECT HAS TO CHECK THE VIABILITY OF THE PROJECT. IT HAS TO ENSURE THAT THE INVESTMENT ON THE PROPOSED PROJECT WILL GENERATE SUFFICIENT RETURN ON THE INVESTMENT MADE AND THAT THE AMOUNT DISBURSED FOR THE IMPLEMENTATION OF PROJECT WILL BE RECOVERED ALONG WITH INTEREST WITH IN STIPULATED TIME
3. PURPOSE ORIENTED LENDING  CAN BE SUCCESSFUL IF THE DETAILED APPRAISAL OF THE PROJECT IS DONE BEFORE COMMITTING FUNDS ON THE PROJECT

PROJECT REPORT/FEASIBILITY REPORT

 

• PROJECT ( FEASIBILITY )
   REPORT
  PROJECT MANAGEMENT
  ENTREPRENEURSHIP
  
  
• DR SHASHI AGGARWAL
  
  
• MEANING OF PROJECT REPORT

1. PROJECT REPORT IS A DOCUMENTS WHICH PROVIDE DETAILS ON THE OVER ALL PICTURE OF THE PROPOSED BUSINESS
2. ALSO KNOWN AS FEASIBILITY REPORT
3. IS PREPARED TO ASCERTAIN THE PROSPECTS OF THE PROPOSED ACTIVITY
4. IT IS PREPARED TO PRESENT IN-DEPTH TECHNO COMMERCIAL ANALYSIS CARRIED OUT ON THE PROJECT IDEA FOR CONSIDERATION OF THE FINANCIAL INSTITUTIONS AND OTHER AUTHORITIES EMPOWERED TO TAKE THE INVESTMENT DECISIONS.

WORK BREAKDOWN STRUCTURE

·         DR SHASHI AGGARWAL

·         PROJECT MANAGEMENT

·         MEANING OF WORK BREAKDOWN STRUCTURE

1.     WORK BREAK DOWN STRUCTURE IS A TECHNIQUE WHICH BREAKDOWN A  WORK INTO ITS COMPONENTS AND AT THE SAME TIME ESTABLISHES THE CONNECTION BETWEEN THE COMPONENTS ON THE LINES OF FAMILY TREE

2.     BUT IT IS NOT MERELY A FAMILY TREE FOR THE HARDWARE INVOLVED IN THE PROJECT

3.     PROVIDES THE FOUNDATION AROUND WHICH MANY PEOPLE WILL GROUP TOGETHER IN THE FORM OF ORGANIZATION AND WITH THE HELP OF SOFTWARE BUILD UP TOTAL EDIFICE

4.     WORK BREAKDOWN STRUCTURE ENABLES THE INTEGRATION OF PEOPLE,HARDWARE,SOFTWARE INTO TOTAL PROJECT WORK SYSTEM