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Project identification Formulation of project report General format of the project report

* World bank says an approval of capital investment to develop

facilities to provide goods and services .

* Project management institute ,U.S.A a project is system involving

the co-ordination of a number of separate departments entities through the organization , and which must be completed within the prescribed schedules and time constraints . * objective is to create/expand/develop certain facilities in order to increase the production of goods and services for the betterment of the community

* Concerned with collection, compilation and analysis of economic

data for the eventual purpose of locating possible opportunities for the investment and with the development of the characteristics of such opportunities .

* Input-raw materials,energy,manpower,finance, and

organizational setup:-nature and magnitude of these had to be determined to make it explicit .

* Output-what project will generate in the form of

goods and services , employment, revenue.

* Impact on society-what society sacrifices and what

benefits they get back, accrued from a given project .

* Systematic development of project idea for the

eventual objective of arriving at an investment decision .

* Step by step investigation and development of

project idea

* Joint effort of team of experts . * Careful, critical ,cautious look at a project idea and
analyzing its various components , in order to formulate an objective project in its totality.

* Involves the examination of technical ,economic,

commercial ,organizational and legal aspects of a project.

* Aim is to achieve the project objectives with the

minimum resources .

* Deriving maximum benefits from minimum expense

in short span of time.

* Project to be taken after project identification.

* An objective without a plan can be regarded only

dream !!!! well formulated project is the best passport for- getting financial assistance. * When there is situation of resource constraint and the available resources are allocated to various projects based on their importance and viability a well formulated project formulation is the best way of selling a project idea to financing agency . * Govt. clearances meeting any hurdles of formalities successfully . * It provides controlled mechanism for restricting expenditure of project development.

* Each member to be familiar with the strategy , objectives . * A govt. official final clearance * Industrial economist * Market analyst * Engineer/technologist. * Mechanical engineer. * Civil engineer * Accounting expert

* Feasibility analysis:-desirability of investing for the

development of the project idea .studies carried out regarding the various alternative in marketing , technology , finance .

- pre-feasibility :-based on data elaborated here the

investment details are discussed .

- Project concept is justified. - Market studies , laboratory experiments .decide is it

viable proposition to the investor

* Feasibility studyeg. During public sector projects

more importance can be given to the wide social benefits than to narrow financial profitability. -possible alternatives solutions for production programme location for the enterprise ,technology to be adopted, organization set up . -in case of non-feasibility , proper efforts to be taken to introduce well defined project .

* Identifying the demand potential of the project

selecting optimum technique needed to achieve the project objective .

* Economy is capable to absorb the product of the

project or not .

* Based on maximum feasible project output and the

selection of strategy appropriate to this output

helps to strengthen quantitative parameters and provides the basis for selecting an optimum strategy for the project -based on product such as capital goods , consumer goods /market competition ,possibility of risk.

* Determination of the demand potential of the project.-

of controlled variables that assure the attainment of project objectives at minimum expenses . -comparing representative strategies each other and identifying a strategy suitable to project objectives , an optimum strategy can be found.

* Selection of optimum strategy refers to the combination

* Framework of a project with detailed sequences

various activities related to one project are interrelated in a sequential order .

* Development of detailed work plan ,presented in the

form of network diagram .

* To identify optimum course of action so as to

implement project with minimum time.

* Detailed identification to the quantification of project

inputs which are essential to develop financial as well as cost-beneficial profile.

* Nature of resources of consumed by the project , estimate

quantity of the resources required , to ascertain the possibility for the resources uninterrupted.

* pre-investment stage :-to know about the project idea and

to develop project design ,(limited resources).

* Construction stage :-needs raw materials and consumer

items in a recurring basis ,(maximum).

* Depending on the material and human resources

.formulates the cost estimates of the project so its inevitable in developing financial and cost beneficial analysis .

* Identify financial characteristics to decide financial

feasibility of the project to analyze project costs ,projects incomes , project funds .

* Find out whether project shall produce the income to

attain the objective for which the project itself is undertaken.

* Generate data for computing different profitability

criteria with the aim of establishing the worth of enterprise for the project in hand .

* Decision for ultimate investment of funds.

* Social cost and social benefits are estimated and

these useful for- calculating social profitability of the project .

* Assessing overall worth of the project . * Not just direct costs and direct benefits , also the
costs borne to project and benefits enjoyed by them are considered .

* Depending on project design ,evaluation be done.

* Overall impact on countrys economy . * How far project is helpful to maintain the
equilibrium of the economy .

* Improving the image of the society . * Data are collected in earlier stages .