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Project Assingment

Project Assingment

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Published by Sammir Choyon

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Published by: Sammir Choyon on Dec 02, 2012
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12/04/2012

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What factors are considered in the preliminary screening of a project?
Preliminary screening is required to eliminate ideas which
 prima facie
are not promising.For this purpose the following aspects may be looked into:
Compatibility with the promoter 
Consistency with the governmental priorities
Availability of input
Adequacy of market
Reasonableness of cost
Acceptability of risk level
Compatibility with the promoter 
This point refers that the idea must be compatible with the interest, personality andresources of the entrepreneur.
Consistency with the governmental priorities
A project must be compatible with the national goal, governmental policies andregulatory framework. The following questions should be considered for analyzing the point:- Is the project consistent with national goals and priorities?- Are there any environmental effect?- Can the foreign exchange requirements of the project be easily accommodated?- Will there be any difficulty in obtaining the license for the project?
 Availability of Inputs
The required resources for the project should be assured in a reasonable way and logicalcost. We should consider the following items in the time of assessing the availability of inputs:-Are the capital requirements’ of the project within manageable limits?-Can the technical know how required for the project be obtained?-Are the raw materials required for the project available domestically at areasonable cost?-If the raw materials have to be imported, will there be problem?-Is the power supply for the project reasonably obtained from external sourcesand captive power sources?
 
 Adequacy of market 
The size of the present market must offer the prospect of adequate sales volume.Additionally, there should be a potential for growth and a realistic return of investment.We must consider the following factors in the time of examine the adequacy of market:-Total present domestic market-Competitors and their market share-Export market-Quality price profile of the product vis-a- vis competitive product-Sales and distribution system-Projected increase in consumption-Barriers to the entry of new units-Economic, social and demographic trends favorable to increase consumption-Patent protection
 Reasonableness of cost 
The cost structure of the proposed project must enable it to realize an acceptable profitwith a price. The following should be examined in this regard:-Cost of material input-Labor cost-Factory overhead-General administrative expense- Selling and distribution cost-Service cost-Economies of scale
 Acceptability of Risk level 
The desirability of a project is critically dependent on the risk characterizing it. In theassessment of risk- a difficult task, indeed- the following factors should be considered:-Vulnerability of business cycle- Technological change-Competition from substitutes-Competitions from imports- Governmental control over price and distribution

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