Anil Kumar.

P
Roll No : 1
S3 MBA
‘Project is a unique set of interrelated activities with a
definite objective by which completion is identified. In
practice most projects depend on finite or limited
resources by which the objective are to be
accomplished.’ –Project management institute , USA
A project has an owner who may be in the public or
private sector. In the private sector it can be an
individual, a partnership or a company. In the public
sector, it can be government undertaking or a joint
sector undertaking.
 It has an objective
 An assigned team plans, manages and controls it.
 An outcome in response to environment.
 An undertaking involving future projects.
 Its implementation involves a coordination of works.
 Constitutes activities to be carried out in future.
 Has a start and an end.
 Involves high skilled forecasting with sound basis for
such forecasting.
 Social objective -impact in the economy of the nation.
E.g.: Rural infrastructure projects
 Economic objective- profit orientation
E.g.: Expansion of the company
 Emergency objective- emergency and of national
importance
E.g.: Defence
 It is the application of knowledge, skills, tools, techniques
of the project activities to meet the project requirements.
 It includes the following steps:
a) Project identification
b)Project formulation
c)Preparation of project report
d)Project appraisal
e)Project implementation
 After gathering all the details from the feasibility studies,
we prepare a project report.
Definition -‘A project report or a feasibility report is a
written account which provides all details about the unit
proposed to be set up for the manufacture of a product or
rendering service’.
 It includes the technical, financial, commercial and social
viabilities of the proposed project.
 Project report enables an entrepreneur to know
whether the project is
 Physically possible ,
 Financially viable,
 Commercially profitable and
 Socially desirable to do the business.
 Facilitate planning of business by setting the guidelines for
future action
 Help procure finance from various financial institution and
banks which ask for such detailed information before giving
any assistance.
 Provide framework for the presentation regarding business
required by the government for granting licenses etc.
 Back ground or general information
a) organization – type of the organization , biodata of
promoter etc.
b)product- detail about the product to be manufactured
should be given.
c) technical know- how- source of the technical know- how
along with the supply of major plant & machinery, training
of personnel etc to be detailed.
 Project at a glance: A summary of the product, capacity,
production, sales, project cost and sources of finance are to be
shown.
 Report on market research of the product: detail of the market
research of the product should be given. It should contain:
a) The expected volume of the market
b) The expected volume of the market share
c) Possible marketing channels
 d) The dealers’ expectation about commission, discount etc.
e)The credit period to be extended to the dealers.
f)The requirement of the service after sales.
g)The competitors, their strength and weakness and their
market share.
 Technical details
a)These include details about the product, manufacturing
process, and plant layout.
 Plant and machinery required for the project.
 Project schedule: The project report should contain a
detailed estimate of the time schedule of the project.
 Organization : The organization structure should also
included in the project report. The manpower
requirements at different levels- managerial, skilled,
and unskilled should be shown.
 Project cost and source of finance: the estimate of the
following expenditure should be included.
a) Land and site development
b) Building and support utilities
c) Plant and machinery
d) Know how fees
e)Preliminary and pre- operative expenses
f) Contingencies etc.
 Cost of production
 Working capital requirements
 Debt service coverage ratio: The project report should
always show the capability of the project to serve the
borrowing for its implementation.