project concepts

8/7/2019 Project Concepts

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PROJECT CONCEPTS


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A project is a proposal for investment to create,

expand and/or develop certain facilities in order to

increase the production of goods and/or services in acommunity during a certain period of time.


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Characteristics of a Project

Investment Pattern

Benefits or Gains

Time Limit and

Location


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The project is an economic activity with well

defined objectives and having a specificbeginning and end.


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LEVELS

Project work takes place at three levels:

National level

Sector level

Project level


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TYPES OF PROJECTS


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Projects have been classified in various ways

Quantifiable and Non-Quantifiable Projects

Sectoral Projects

y Agriculture and allied sector

y Irrigation and Power

y Industry and Mining

y Transport

y Social Service


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Techno-Economic Projects

y Factor Intensity Oriented: Capital/Labor intensive

y Causation Oriented: Demand or raw materials based

y Magnitude oriented: Large, Medium Scale


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Financial Institutions Classification:

y New Projects

y Expansion Projects

y Modernization Projects

y Diversification Projects.

Services Projects

y

Welfarey Service

y R &D

y Educational Project


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Dimensions of Project

the catalytic agents of economic development

initiate the process of development- production,

employment, income generation and so on.

provide the framework of the future activities of the

enterprises.

have long-term consequences


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Project commitments cannot be easily reversed.

brings the necessary changes in society in course

of time.

accelerate the process of socio-cultural

development.

also initiate development of basic infrastructure

and environment.


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PreliminaryAspects

FeasibilityAspects

Aspectsof

Project


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Preliminary Aspects

Analyzing Product /

service

Marketing

Technical

Financial

Economic

Feasibility Aspects

Financial viability

Profitability

Financial Projections

Socio-economic

desirability


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PROJECT PLANNING CYCLE

Project Identification

Project Preparation

Project Implementation

Ex-post Evaluation

Project Objectives


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The essential requirements for project objectives are:

specific, not general

not overly complex

measurable, tangible and verifiable, realistic andattainable

established within resource bounds

consistent with resources available or anticipated

consistent with organizational plans, policies and

procedures.


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The objectives of a project can be for:

Maximization of the market value of equity.

Maximization of net present value.

Maximization of return.

Increase in the internal rate of return (IRR) at

low risk.

Increase in the net present value of monetary

flows.


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PROJECT PLANNING

Planning should justify,

Planning would help to optimize the use of scarce

resources.

Optimization and better utilization of the

existing resources.

Results in the desired benefits.

Within the budgetary provisions of a financing

institution.


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PROJECT APPROACH

Sub-sector orproduct approach

Functionalapproach

Regionalapproach


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Project Features

Simplicity and clarity.

Availability of attractive technology to promote the

project.

Integration of basic production services, especially

those of input supply, credit, marketing and

extension.

Compatibility of the project within the existing

administrative mix


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PHASES OF A PROJECT

Identification

Formulation

Appraisal

Selection

Implementation

Management


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THE BASIC TENETS OF MANAGING

PROJECTS

Define the objective of the project.

Determine the constituent tasks.

Identify important milestones.

Allocate resources to each task.

Re-evaluate task relationships and scheduling,pinpointing resource conflicts.

Execute the project.

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