Project Management Sarah 501o6t

Project Management By Ms. Sarah Kazmi MBA,Delhi School Of Economics

Topics to be covered 1.1 Introduction 1.2 Concept of project and project management 1.3 Characteristics of project 1.4 Project Family tree 1.5 Classification of Project 1.7 Project life cycle 1.8 Project report 1.9 Project appraisal 1.10 Tools and techniques for project management

Introduction Economic development Planning Non routine Taj and pyramid

A Project A unique process, consisting of a set of

coordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements including constraints of time, cost and resources. (Lockyer and Gordon, 1996)

A Project Unique process Coordinated and controlled activities Start and finish dates To achieve an objective Specific requirements Constraints of time, cost and resources

CHARACTERISTICS OF PROJECT Objectives Life cycle Uniqueness Team Work Complexity Risk and uncertainty Customer specific nature Change Optimality

PROJECT FAMILY TREE

CLASSIFICATION OF PROJECTS Business Projects: Developmental Projects: Technical Projects: Small, medium and large budget

Projects; National and International Projects; Short term and long term projects

Product Life Cycle

The principal stages in the life of a project are :

Identification • Initial formulation • Evaluation (selection or rejection) • Final formulation (or selection) • Implementation • Completion and operation

Identification Surveys Indepth Studies Socio-economic environment studies  Past and Future trends

Initial Formulation Crystalise Objectives Decision making criteria Broad lay out for evaluation Detailed Planning

Evaluation or Project Appraisal feasibility studies : • Commercial viability • Economic feasibility • Financial feasibility • Technical feasibility • Management

Formulation General information • Project description • Market potential • Capital costs and sources of finance • Assessment of working capital requirement • Other financial aspect • Economic and social variables.

Project Implementation Project Completion

PROJECT REPORT Contents of Project Report • General Information • Promoter • Location • Land and Building • Plant and Machinery • Production process • Utilities • Transport and communication • Raw material • Manpower • Product • Market

PROJECT APPRAISAL Method of Project Appraisal Economic analysis 2 Financial analysis 3 Market analysis 4 Technical analysis 5 Managerial competence 6 Ecological analysis

Economic Analysis Requirements for raw material • Level of capacity utilization • Anticipated sales • Anticipated expenses • Proposed profits • Estimated demand

Financial Analysis Cost of capital • Means of finance • Estimates of sales and production • Cost of production • Working capital requirement and its

financing • Estimates of working results • Break-even point • Projected cash flow • Projected balance sheet.

Market Analysis Opinion polling method Life Cycle Segmentation Analysis Introduction, Growth, Maturity, Saturation and Decline.

Technical Analysis Availability of Land and site  Availability of Water Power, transport,

communication facilities.  Availability of servicing facilities like machine shop, electric repair shop etc. Coping with anti pollution law Availability of work force Availability of required raw material as per quantity and quality.

Management Competence Ecological Analysis Environmental damage Restoration measure

Techniques and tools Project selection techniques (a) Cost benefit analysis and (b) Risk and sensitivity analysis 2. Project execution planning techniques (a) Work breakdown structure (WBS) (b) project execution plan (PEP) (c) Project responsibility matrix and (d) Project management manual