PROJECT-- ACCORDING TO THE PROJECT MGMT.

INSTITUTE USA A PROJECT IS AN ENDEAVOR TO ACOMPLISH A SPECIFIC OBJECTIVE THROUGH A UNIQUE SET OF INTERRELATED TASKS AND THE EFFECTIVE UTILISATION OF RESOURCES. THE WORLD BANK HAS DEFINED PROJECT AS AN APPROVAL FOR A CAPITAL INVESTMENT TO DEVELOP FACILITIES TO PROVIDE GOODS AND SERVICES. IT HAS A WELL DEFINED OBJECTIVE STATED IN TERMS OF SCOPE ,SCHEDULE, AND COSTS. PROJECTS ARE BORNWHEN NEED IS IDENTIFIED BY THE CUSTOMER -- THE PEOPLE OR ORGANISATION WILLING TO PROVIDE FUNDS TO HAVE THE NEED SATISFIED. IT IS THE PEOPLE (PROJECT MANAGER AND PROJECT TEAM) NOT THE PROCEDURES AND TECHNIQUES THAT ARE CRITICAL TO ACCOMPLISH THE PROJECT OBJECTIVE PROCEDURES AND TECHNIQUES ARE MERELY TOOLS TO HELP THE PEOPLE DO THEIR JOBS. BASIC COMPONENTS OF A PROJECT A PROJECT IS A PRODUCTIVE ACTIVITY WHICH CAN BE ANALYZED,APPRAISED AND MONITORED INDEPENDENTLY. A MULTIPURPOSE RIVER VALLEY PROJECT IS A GIGANTIC PROJECT A PROJECT HAS SPECIFIC OBJECTIVES IN TERMS OF GEOGRAPHICAL LOCATION ,SPECIFIC STARTING AND END POINT, AND MOST IMPORTANT ---TO SERVE A TARGET POPULATION BY ACHIEVING GOOD INVESTMENT RETURNS. FIG CHARACTERISTICS OF A PROJECT THERE ARE FOUR BASIC CHARACTERISTICS A)INVESTMENT PATTERN (VALUE)

B) BENEFITS AND GAINS C)TIME LIMIT (MAJOR FACTOR FOR COST OVERRUNS) D) LOCATION (AVAILABILITY OF RAW MATERIALS, MANPOWER ETC.)

PROJECT CLASSIFICATION Project classification helps in graphically expressing and highlighting the essential features of the project be it quantifiable or nonquantifiable, be it any potential sector, be it capital intensive, or labour intensive--. Which will effect the projects feasibility. Projects have been classified in various ways by different authorities----1. Quantifiable and n0n- quantifiable projects Quantifiable projects are those in which a plausible quantitative assessment of benefits can be made e.g. projects concerned with industrial development, power generation, mineral development fall in this category. Non-quantifiable projects are those in which such an assessment is not possible e.g projects involving health, education, and defence . 2. Sectoral projects--A project under this classification falls into any one of the following sectors--(A) agriculture sector (B) irrigation and power sector (C) industry and mining sector (D) transportation and communication sector (E) social service sector

3. TECHNO ECONOMIC PROJECTS Three main groups of classification are (A) factor intensity oriented classificationon this basis projects may be classified as capital intensive or labour intensive

depending upon whether large scale investment in plant and machinery or human resources are involved (B) causation oriented classification---projects are classified as demand based or raw materials based projects ---depending on the non availability of certain goods or services. (C) magnitude oriented classificationhere the size of investment forms the basis of classification .projects may be classified as large scale, medium scale or small scale projects depending upon the total project investment. (D) financial institutions classification all india and state financial institutions classify the projects according to their age and experience and the purpose for which the project is being taken up. they are as follows A) new projects B) expansion projects C) modernisation projects D) diversification projects the above projects are generally profit oriented. (E) services projects the services oriented projects are classified as under (a)welfare projects (b) Service projects (c) Research and development projects (d)education projects.

DIMENSIONS OF A PROJECT 1. THEY BECOME THE CATLYTIC AGENTS OF ECONOMIC DEVELOPMENT 2. THEY INITIATE THE PROCESS OF DEVELOPMENT --PRODUCTION, EMPLOYMENT, INCOME GENERATION ETC. 3. THEY HAVE CONSEQUENCES WHICH ARE LONG TERM IN NATURE 4. PROJECTS PROVIDE THE FRAMEWORK OF THE FUTURE ACTIVITIES OF THE ENTERPRISES. 5. THEY INITIATE DEVELOPMENT OF BASIC INFRASTRUCTURE AND ENVIRONMENT 6. PROJECT COMMITMENTS CANNOT BE EASILY REVERSED 7. PROJECTS ACCELERATE THE PROCESS OF SOCIOCULTURAL DEVELOPMENT. CREATION OF A PROJECT FIG PROJECT IS VIEWED AS A CONVERSION OR TRANSFORMATION OF SOME FORM OF INPUT INTO AN OUTPUT. THE FIGURE SHOWS THE INPUTS ARE SOME FORM OF WANT OR NEED WHICH IS SATISFIED THROUGH THIS PROCESS OF CONVERSION. THE PROJECT WILL TAKE PLACE UNDER A SET OF CONTROLS OR CONSTRAINTS.WHICH ARE ELEMENTS FROM OUTSIDE THE PROJECT THE MECHANISMS ARE THOSE RESOURCES THAT MAKE THE CONVERSION PROCESS POSSIBLE. INPUTS---- FOR A PROJECT THERE WILL BE SOME FORM OF PROJECT BRIEFA DOCUMENT WHICH PROVIDES A STATEMENT OF WANT OR NEED THAT IS TO BE TRANSFORMED BY THE PROJECT

CONSTRAINTS--The brief will also set the constraints which may be in the forms of Financial--- the amount and timing of release of capital to the project and the revenue or other benefit it should generate. Legal there may be legal constraints for eg a building may not be constructed unless b. m. c.approves the plan. Ethicalcustomers are worried about ethical behaviour of companies. they expect that companies should go green and produce environmentally friendly products. Environment--- environment legislation in the form of environmental clearance has become one of the major constraints for a project. Logical --- the need for certain activities to have been completed before the project begins. Activationactions to show when a project is to start Timethe largest constraint for most of the projects Quality ---the standards by which both the product and the process itself will be judged. Indirect effectsthe output of the project will be in the form of converted information say a set of SPECIFICATIONS FOR A NEW PRODUCTA TANGIBLE PRODUCT SAY A BUNGALOW.

OUTPUT OUTPUT STANDS FOR SATISFIED NEED OF A PROJECT FOR E.G A NEW BUNGALOW FROM A CONSTRUCTION PROJECT. THE OUTPUT MAY BE TANGIBLE OR INTANGIBLE

MECHANISMS THE MEANS OF MECHANISMS BY WHICH THE OUTPUT IS ACHIEVED ARE PEOPLETHOSE INVOLVED BOTH DIRECTLY AND INDIRECTLY IN THE PROJECT KNOWLEDGE AND EXPERTISEBROUGHT BY THE PARTICIPANTS AND OUTSIDE RECRUITED ASSISTANCE SAY CONSULTANTS---TO THE PROJECT. CAPITALTHE MONEY THAT PROVIDES INPUTS OR RESOURCES TOOLS AND TECHNIQUES --- THE METHODS FOR ORGANISING THE POTENTIAL WORK WITH THE AVAILABLE RESOURCES. TECHNOLOGY----THE AVAILABLE PHYSICAL ASSETS THAT WILL BE PERFORMING PART OF ALL OF THE CONVERSION PROCESS.

ASPECTS OF A PROJECT THERE ARE TWO ASPECTS OF A PROJECT. FIRST-- A PRELIMINARY ASPECT OF ANALYSING THE PRODUCT, ITS MARKETING,TECHNICAL,FINANCIAL AND ECONOMIC ASPECTS. SECONDTHE FEASIBILITY ASPECTS IT CONTAINS ADEQUATE INFORMATION FOR DECISION MAKING AND SOMETIMES,EVEN IMPLEMENTATION.

 ASPECTS OF PROJECTS ____________________________________________________ ASPECTS CONCERNED WITH 1.PRELIMINARY PRODUCT/SERVICE (A) CHOICE OF PRDT/SERVICE (B)TECHNICAL CHARACTS OF THE PRODUCT/SERVICE (C)USE OF THE PRDT/SERVICE MARKETING (A) CONSUMER PREFERENCES (B)NATURE OF COMPETITION (C)POTENTIAL/DEMAND (D)LIKELY SHARE OF THE PRJCT (A)LOCATION (B)SCALE OF OPERATIONS (C)MANUFACTURING PROCESS (D)PLANT & MACHINERY (E)PLANT LAYOUT (F) WORK SCHEDULE (A)OUTLAY ON FIXED ASSETS (B)CURRENT ASSETS (C)WORKING CAPITAL (D)SHORT AND LONG TERM FINANCE. (A)UTILITY TO SOCIETY (B)EMPLOYMENT GENERATION (C)ANCILLARY DEVELOPMENT (D)SCOPE FOR AREA DEVELOPMENT.

TECHNICAL

FINANCIAL

ECONOMIC

II FEASIBILITY FINANCIAL VIABILITY (A) COSTS AND BENEFITS (B) RISK CHARACTERISTICS (C) VIABILITY (D)INTERNAL RATE OF RETURN (IRR) (A) REVENUES, EARNINGS (B)COSTS (C)PROFITS (D)BREAK EVEN LEVEL OF OPRNS

PROFITABILITY

FINANCIAL PROJECTIONS (A) PROFORMA BALANCE SHEET (B)SOURCES & USES OF FUNDS SOCIO-ECONOMIC DESIRABILITY

(A) DESIRABILITY OF THE PROJECT FROM THE SOCIAL ANGLE (B) MAXIMUM RETURNS. ________________________________________________ MOST OF THE VARIOUS ASPECTS OF A PROJECT ARE STUDIED SIMULTANEOUSLY AS THEY ARE INTERRELATED. PRIMARILY THE PROJECT IS ASSESSED FOR ITS ECONOMIC VIABILITY IN TERMS OF MARKETING, TECHNICAL, PRODUCTION FINACIAL AND ECONOMIC ASPECTS. ---IF THE ABOVE ANALYSIS SUGGESTS THAT THE PROJECT IS WORTHWHILE----- A MORE DETAILED INVESTIGATION IS CONDUCTED.

BASIC CHARACTERISTICS OF A PROJECT--1.IT *PLANNING OF A PROJECT IS ONE SIDE AND IMPLEMENTATION IS ANOTHER. THINGS DO NOT GO AS WE CALCULATE HAS PRE-DETERMINED OBJECTIVES * ANY PRODUCT HAS A SET OF PREDETERMINED OBJECTIVES. FOR E.G CONSTRUCTION OF A DAM HAS THE FOLLOWING OBJECTIVES1) PROVIDING WATER FOR AGRICULTURAL AREAS COVERING A STATE 2) GENERATION OF ELECTRICITY 3) REHABILITATION OF FAMILIES WHERE THE DAM WILL BE CONSTRUCTED. THE OBJECTIVES MAY BE DIFFERENT FOR CONSTRUCTION OF A HOSPITAL. 2. IT HAS A LIFESPAN A) AS PROJECT HAS THE DIMENSION OF TIME AND CANNOTGO ON AND ON FOR EVER FOR E.G THE KONKAN RAILWAY WAS TO BE COMPLETED IN FIVE YRS IN THREE STATES OF KERALA, KARNATAKA AND MAHARASHTRA AND IT WAS DONE B) CONSTRUCTION OF NATIONAL HIGHWAY 17 BY GAMMON INDIA LTD. TOOK DOUBLE THE NO OF

YRS THEN SCHEDULED. 3)IT IS A SINGLE ENTITY (A) A GIVEN PROJECT IS A SINGLE ENTITY ENTRUSTED TO A AUTHORITY. FOR EG CONSTRUCTION OF A CEMENT PLANT GIVEN TO L &T.THE AUTHORITY EMPLOYS PARTICIPANTS WHO ARE SPECIALISTS IN COMPLETING THE PROJECT SUCCESSFULLY. 4)IT IS HALLMARK OF TEAM WORK IT IS A JOINT ACTIVITY AND HENCE TEAM WORK.THE TEAM CONSISTS OF MEMBERS FROM DIFFERENT AREAS,SKILLS,KNOWLEDGE,EXPERTISE & LEADERSHIP QUALITIES. 5)IT HAS A LIFE-CYCLE THE PERIODS OF LAUNCH OR INTRODUCTION, GROWTH,MATURITY AND DECAY ARE NOT HAVING SAME TIME PERIOD WHICH DIFFER FROM PROJECT TO PROJECT,TIME TO TIME, AND THE PROJECT MGMT. TEAM. 6)EACH PROJECT IS UNIQUE CONSIDER TWO STEEL PLANTS OF SAME CAPACITY, SAME TECHNOLOGY,CONSTRUCTED BY SAME PROJECT UNIT--- IT IS THE LOCATION, INFRASTRUC TURE,THEIR AGENCIES AND THE PEOPLE WHICH MAKE THEM UNIQUE.

7)CHANGE IS ANOTHER NAME FOR PROJECT A PROJECT FACES CHANGES IN ITS LIFE SPAN-DURING DIFFERENT STAGES OF COMPLETION. IN INDIA PROJECTS HAVE BEEN DRAWNN FOR THE PAST 50 YRS TO ROOT OUT THE PROBLEMS OF FLOODS IN WEST BENGAL,ORISSA,AND BIHAR BUT INSPITE OF GOVT. EFFORTS THEY ARE A FAILURE. 8)PROJECT HAS A WIDE GAP BETWEEN DREAM AND REALITY. . E.G THE WORLI SEA LINK WAS PLANNED WELL BUT IT TOOK 18 YRS TO CONVERT IT INTO A REALITY. 9)A PROJECT IS A MARK OF HIGH LEVEL OF SUBCONTRACTING *A PROJECT REQUIRES THE SERVICES OF SPECIALISED PERSONS. *TAKE THE CASE OF A SEVEN STOREY BUILDING WE HAVE SPECIALISITS-- WHO LAY FOUNDATION, FIXING DOORS AND WINDOWS,CONCEALED WIRING,PLUMBING, FIRE FIGHTING SYSTEM ETC. HENCE DEPENDING UPON THE NATURE OF WORK, ABOUT 75 TO 80% WORK IS DONE BY SUBCONTRACTORS. 10) A PROJECT IS A PACKAGE OF RISK AND UNCERTAINTY *A PROJECT IS A BUSINESS PROPOSAL WHERE THERE ARE PROBABILITIES OF HIGH PROFITS, NO PROFITS AND LOSSES. *THERE IS A GREAT AMOUNT OF RISK AND UNCER

TAINTY ASSOCIATED WITH PROJECTS.THE DEGREE OF RISK AND UNCERTAINTY DEPENDS ON HOW A PROJECT HAS BEEN PASSED THROUGH THE VARIOUS LIFE-CYCLE PHASES.

PROJECT MANAGEMENT------(A) IT IS THE APPLICATION OF KNOWLEDGE, SKILLS ,TOOLS,AND TECHNIQUES TO PROJECT ACTIVITIES IN ORDER TO MEET OR EXCEED STAKEHOLDER NEEDS AND EXPECTATIONS FROM A DEFINED PROJECT ---BALANCING THE FOLLOWING (1)SCOPE,TIME, COST AND QUALITY (2)STAKEHOLDERS EXPECTATIONS (3)REQUIREMENTS( NEEDS) VS UNIDENTIFIED REQUIREMENTS (EXPECTATIONS) (B) PROJECT MANAGEMENT IS OFTEN SUMMARISED IN A TRIANGLE. THE THREE MOST IMPORTANT FACTORS ARE TIME,COST AND SCOPE.COMMONLY CALLED THE TRIPLE CONSTRAINT. THESE FORM THE VERTICES WITH QUALITY AT THE CENTRE. FIG (1)PROJECTS MUST BE DELIVERED IN TIME (2)PROJECTS MUST BE WITHIN COST (3)PROJECTS MUST BE WITHIN SCOPE (4)PROJECT MUST MEET CUSTOMER QUALITY REQUIREMENTS PRESENTLY THE TRIANGLE HAS GIVEN WAY TO A DIAMOND WITH TIME COST SCOPE AND CUSTOMER EX PECTATIONS AT THE CENTRE (THE EXPECTATIONS DIFFER FROM CUSTOMER TO CUSTOMER FIG

A GOOD PROJECT MANAGEMENT DISCIPLINE WILL NOT ELIMINATE ALL RISKS, ISSUES AND SURPRISES, BUT WILL PROVIDE STANDARD PROCESSES AND PROCEDURES, TO DEAL WITH THEM AND HELP PREVENT THE FOLLOWING: *PROJECTS FINISHING LATE,EXCEEDING BUDGET OR NOT MEETING CUSTOMER REQUIREMENTS. *INCONSISTENCY BETWEEN THE PROCESSES AND PROCEDURES USED BY PROJECT MANAGERS, LEADING TO SOME BEING FAVOURED MORE THAN OTHERS. *SUCCESSFUL PROJECTS, DESPITE A LACK OF PLANNING,ACHEIVED THROUGH A HIGH STRESS LEVELS,& GOODWILL *PROJECT MANAGEMENT SEEN AS NOT ADDING VALUE AND AS A WASTE OF TIME AND MONEY. *UNFORSEEN INTERNAL AND OR EXTERNAL EVENTS IMPACTING THE PROJECT. PROJECT MANAGEMENT IS ABOUT CREATING AN ENVIRONMENT AND CONDITIONS IN WHICH A DEFINED GOAL OR OBJECTIVE CAN BE ACHIEVED IN A CONTROLLED MANNER BY A TEAM OF PEOPLE.