MODULE 5

PROJECT MANAGEMENT

NEW CONTROL TECHNIQUES

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 What is Project?
“Any undertaking with a definite
starting point and defined objectives
by which completion is defined ”

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 Features of project
• Project has definite objectives
• It consists of interrelated activities
• It requires multiple skills
• It has constraints of time, resources and
budget
• It is unique

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 CONTROL VARIABLES IN A PROJECT
1. Time:
Time required to complete the component of the project
Time required to complete each task
2. Cost
3. Quality
4. Scope
5. Risk

3-Oct-19 G.PURUSHOTHAM 4
 Project Identification
• This is the first step and most important step in starting a
new project
• The success of an entrepreneur depends on the selection of
right project which can be launched successfully
• It involves collection, compilation and analysis of economic
data for the purpose of locating possible opportunities for
investment based on opportunities in the market

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 Sources of Information for
project identification
1. Consumers
2. Existing products and services
3. Distribution channels
4. Government sources
5. Observation
6. Trade and professional journals

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 Project selection
Selection of project is depends on
a) Investment size
b) Growth of sales
c) Equipment
d) Location
e) Market

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 Components(contents) of Project Report
• Summary – a brief overview of the plan
• Business description – what the company does
• Market analysis – who is the customer, market size, trends
• Competitive analysis – who else is out there, local, domestic, foreign
• Product / Service advantages – why your product is better
• Objectives – quantifiable targets
• Marketing strategy – how to reach those targets
• Operations – how will the company produce
• Organization and management – who will run it
• Timing – when will things happen
• Financial information – historical, actual, projected
• Exhibits / Appendices – brochures, photos, news clippings etc
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 Summary
• A brief overview of the business
• Estimated market potential and competitive assessment
• Product’s advantages and market need it will meet
• Objectives for the business
• Market strategies
• Experience with the product or service or industry
• Projected sales and profit
• How much financing needed?
• What is the investment?
• How and when the financing will be repaid.
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 Business description
• The legal form of the business(partnership, sole owner, private
limited, public limited etc)
• About specific product or services
• The present and proposed location of the business
• Existing or potential customers and their geographic area
• A brief history of the business, how did you get here?
• How was business financed until now?
• Who are, or who will be the owner?
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 Market analysis
• Market size
• Market profile
• Who will buy?
• Where are customers?
• Why will your product or service be purchased?
• When will your product or service be purchased?
• What is the customer’s expectation?

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 Competition
• How many companies will be competing against?
• How do they distribute the product or service?
• What is their respective market share?
• What is their strength and weaknesses in marketing,
operations and finance?
• How does your product compare in terms of price,
quality, service, design, delivery or other feature?

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 Product or service advantages

•Product description
•Proprietary position
•Other barriers to competition
•Regulatory Requirements
•Product extension

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Objectives
•Target markets
•Estimated sales and Market share

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 Marketing Strategy
•Product features
•Pricing
•Distribution
•Promotion

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 Formulation of a project
Project formulation is taking first a look, carefully and critically, at a
project idea by an entrepreneur to build up an all round beneficial
project after carefully weighing its various components
Steps in project formulation:
• Feasibility analysis
• Techno-economic analysis
• Project design and network analysis
• Financial analysis
• Social cost – benefits analysis
• Pre – investment analysis
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 Guidelines by Planning
Commission for Project report
The major guidelines are:
a) General information
b) Preliminary analysis of alternatives
c) Project description
d) Marketing plan
e) Capital requirement and cost
f) Operating requirements and costs
g) Financial analysis
h) Economic analysis
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 Project Network Analysis
• It is the name given to certain specific
techniques which can be used for the planning,
management and control of project.
• It is a systematic quantitative structured
approach to the problem of managing a project
through a successful completion.

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In network analysis, typically a project is broken into:

• Separate activities where each activity has an

associated duration or completion time. It has
definite time from start to finish
• Precedence relationships exists between
activities.

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 PROJECT LIFE CYCLE

Concept and
Proposal

Development

Implementation

Verification

Termination

Initial Phase Intermediate Phases Final Phase

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