MODULE 3

CONCEPT OF PROJECT

A project may also be a set of interrelated tasks to be executed over a fixed period and
within certain cost and other limitations.
• It may be a temporary (rather than permanent) social systems as work systems that is
constituted by teams within or across organizations to accomplish particular tasks under time
constraints.
• A project may be a part of a wider programme management.

PROJECT MANAGEMENT

Project management, is the application of knowledge, skills, tools, and techniques to

project activities to meet the project requirements.

Functions of Project Management

• SCOPING : setting boundaries of the project

• PLANNING : identifying the task required to complete the project.

• ESTIMATING : identifying resources required to complete the project.

• SCHEDULING : developing a plan to complete the project

• ORGANIZING : making sure members understand their roles and responsibilities.

• DIRECTING : coordinating the project.

• CONTROLLING : monitoring the progress.

• CLOSING : assessing success or failure.

CLASSIFICATION OF PROJECTS

Projects can be classified in sentences based on various criteria, such as their nature,
scope, industry, or objectives. Below are examples of how projects can be categorized and
expressed concisely in sentences:

1. Based on Purpose

 Research Projects: "The project aims to study the effects of climate change on marine
ecosystems."
 Development Projects: "The project focuses on building a new e-commerce platform."
 Service Projects: "This project involves providing clean water to rural areas."

2. Based on Scope

 Small-scale Projects: "This is a local project to renovate the community park."

 Large-scale Projects: "The project includes constructing a nationwide transportation
network."

3. Based on Duration

 Short-term Projects: "This project will be completed within three months."

 Long-term Projects: "The urban development project will span over five years."

4. Based on Industry

 IT Projects: "The project involves developing a cloud-based application for healthcare

providers."
 Construction Projects: "This project includes building a 20-story residential tower."
 Education Projects: "The project introduces digital learning tools in rural schools."

5. Based on Methodology

 Agile Projects: "This software development project follows the Agile methodology."
  Waterfall Projects: "The construction project adheres to the Waterfall approach, with
sequential phases."

6. Based on Outcome

 Commercial Projects: "This project aims to launch a new product line for the
company."
 Nonprofit Projects: "The project is dedicated to improving literacy rates in
underprivileged areas."

7. Based on Funding

 Government-funded Projects: "The project is funded by the federal government to

improve infrastructure."
 Privately-funded Projects: "This is a privately-funded project to develop a luxury
hotel."

PROJECT LIFE CYCLE

The project life cycle consists of distinct phases, each contributing to the successful
completion of a project. Below are concise sentences explaining each phase:

1. Initiation Phase

 "The project begins with identifying the goals, feasibility, and scope during the initiation
phase."
 "Key stakeholders are identified, and a project charter is created to formalize the start."

2. Planning Phase

 "In the planning phase, detailed schedules, budgets, and resource plans are developed."
 "The project team defines milestones, risk management strategies, and communication
plans."
3. Execution Phase

 "During execution, project tasks are performed according to the plan to deliver the
desired outcomes."
 "Resources are allocated, teams collaborate, and progress is tracked against the baseline."

4. Monitoring and Controlling Phase

 "This phase involves tracking performance to ensure the project stays on time and within
budget."
 "Adjustments are made as necessary, and any deviations from the plan are addressed."

5. Closure Phase

 "The project concludes with delivering the final product, service, or result to
stakeholders."
 "A post-project review is conducted to document lessons learned and celebrate
achievements."

GENERATION AND SCREENING OF PROJECT IDEAS

a) Idea generation: is the creative process or procedure that a company uses in order to
figure out solutions to any number of difficult challenges. It involves coming up with
many ideas in a group discussion, selecting the best idea or ideas, working to create a
plan to implement the idea, and then actually taking that idea and putting it into practice.
The idea can be tangible, something you can touch or see, or intangible, something
symbolic or cultural.
• An organization needs to follow three main stages namely generation, selection and
implementation for successful ideation.
 Stage 1: Generation : For a lot of companies, making use of ideation to
address a specific problem or requirement is frequently a good starting point.
The majority of companies can easily identify these kinds of needs – the main
decision is whether they contribute to an ideation approach. After problem-
 solving, come two other key chances for utilizing ideation: core competencies
and consumer insights
 Stage 2: Selection : Picking the best ideas starts much before the beginning
of the ideation process. It is essential that you fix the criteria by which the
ideas are to be assessed, who would be responsible for evaluating the ideas,
and how the top ideas would be given to the concerned internal teams for
further assessment or execution. A proper selection process begins with the
use of tags or labels to arrange the ideas into meaningful clusters.
 Stage 3: Implementation : The success of implementation is dependent on
an organization’s ability to choose the top ideas and take action based on
them. It also depends on the organization having appropriate workflows in
place so that the right groups take part at the appropriate time in the three
steps of the ideation process.

b) Idea Screening : A process used to evaluate innovative product ideas, strategies and
marketing trends. Idea screening criteria are used to determine compatibility with overall
business objectives and whether the idea would offer a viable return on investment.

PROJECT FORMULATION

A process is a collection of interrelated actions and activities that take place in order to
achieve a set of previously specified products, results or services. The project team is in charge
of executing the formulation, evaluation and project management processes. The processes (tasks
and activities) have clear dependencies and are done following the same sequence in each
project. They are independent from the area of application approaches. These groups of
processes consider the multidimensional nature of formulation, evaluation and project
management.
MARKET DEMAND ANALYSIS

Companies use market demand analysis to understand how much consumer demand
exists for a product or service. This analysis helps management determine if the company can
successfully enter a market and generate enough profits to advance its business operations. While
several methods of demand analysis may be used, they usually contain a review of the basic
components of an economic market.

SITUATION ANALYSIS

Situation analysis refers to a collection of methods that managers use to analyse an

organization's internal and external environment to understand the organization's capabilities,
customers, and business environment. The situation analysis consists of several methods of
analysis: The 5Cs Analysis, SWOT analysis and Porter five forces analysis.
TECHNICAL ANALYSIS

The technical analysis of a project idea includes designing the various processes,
installing equipment, specifying material, and prototype testing. The project manager has to be
careful in finalizing the technical aspects of the project as the decision is irreversible and the
investments involved may be high. The project manager has to select the technology required in
consultation with technical experts and consultants.

FINANCIAL ANALYSIS

One of the most important parts of the project planning process is the financial
analysis. The goals of this phase are to determine whether or not to take on the project, to
calculate its profits and to ensure stable finances during the project. In other words, financial
analysis evaluates project liquidity and profitability. Liquidity is assured by cash flow analysis,
while the profitability is evaluated by the following techniques:

• Payback period analysis • Accounting rate of return • Net present value • Internal rate of
return

ANALYSIS OF PROJECT RISK

 Risk Analysis and Management is a key project management practice to ensure that the
least number of surprises occur while your project is underway. While we can never predict the
future with certainty, we can apply a simple and streamlined risk management process to predict
the uncertainties in the projects and minimize the occurrence or impact of these uncertainties.
This improves the chance of successful project completion and reduces the consequences of
those risks.

FIRM RISK AND MARKET RISK

The financial uncertainty faced by an investor who holds securities in a specific firm.
Company risk can be mitigated through diversification; by purchasing securities in additional
companies and uncorrelated assets, investors can limit a portfolio's exposure to the ups and
downs of a single company's performance.

Market risk is the possibility for an investor to experience losses due to factors that affect the
overall performance of the financial markets in which he is involved. Market risk, also called
"systematic risk," cannot be eliminated through diversification, though it can be hedged against.

COSTS BENEFIT ANALYSIS

Cost–benefit analysis (CBA), sometimes called benefit costs analysis (BCA), is a

systematic approach to estimate the strengths and weaknesses of alternatives (for example in
transactions, activities, functional business requirements or projects investments); it is used to
determine options that provide the best approach to achieve benefits while preserving
savings.The CBA is also defined as a systematic process for calculating and comparing benefits
and costs of a decision, policy (with particular regard to government policy )or (in general)
project.

Broadly, CBA has two main purposes:

• To determine if an investment/decision is sound (justification/feasibility) – verifying whether

its benefits outweigh the costs, and by how much;

• To provide a basis for comparing projects – which involves comparing the total expected cost
of each option against its total expected benefits.
SOCIAL COST BENEFIT ANALYSIS

Social cost-benefit analysis of anything is associated with its social impact. Social cost
benefit analysis is a part of calculating the merits of a project or a government policy. Only after
calculating the opportunity cost of a project, it is approved.

SCBA can be applied to both public and private investments

• Public Investment: SCBA is important specially for the developing countries where govt.
plays a significant role in the Economic development

• Private investment: Here, SCBA is also important as the private investments are to be
approved by various governmental and Quasigovernmental agencies.

ENVIRONMENTAL APPRAISAL OF PROJECTS

EAP is defined as: Identification, Prediction, and Interpretation Study of changes in

socio-economic and bio-physical traits of the environment , which may result from the
project.Communication of information about the impact of a project on man’s health and well
being.

Objectives of EAP

• Informing the public about the proposal.

• Ensuring that possible adverse environmental impacts are identified and avoided or minimized.

• Ensuring environmental factors are considered in the decision-making process.

STRESS ON ENVIRONMENT

Stressors are environmental factors that cause stress. They include biotic factors such as
food availability, the presence of predators, infection with pathogenic organisms or interactions
with conspecifics, as well as abiotic factors such as temperature, water availability and toxicants.
PROJECT REPORT

A Project Report is a document which provides details on the overall picture of the
proposed business. The project report gives an account of the project proposal to ascertain the
prospects of the proposed plan/activity.

Project Report is a written document relating to any investment. It contains data on the
basis of which the project has been appraised and found feasible. It consists of information on
economic, technical, financial, managerial and production aspects. It enables the entrepreneur to
know the inputs and helps him to obtain loans from banks or financial Institutions.

CONTENTS OF A PROJECT REPORT

A project report is a structured document that presents the details of a project. Below are the
typical contents of a comprehensive project report:

1. Title Page

 "Includes the project title, name of the organization or individual, submission date, and
author(s)."

2. Executive Summary

 "Provides a brief overview of the project, including objectives, methodology, key

findings, and recommendations."

3. Table of Contents

 "Lists all sections, sub-sections, and appendices with corresponding page numbers for
easy navigation."

4. Introduction

 "Explains the purpose of the project, background information, and its relevance or
significance."
5. Objectives

 "Clearly defines the goals and objectives the project aims to achieve."

6. Project Scope

 "Details the boundaries, limitations, and extent of the project activities."

7. Methodology

 "Describes the approach, tools, and techniques used to conduct the project, including data
collection and analysis methods."

8. Project Plan and Timeline

 "Outlines the project schedule, key milestones, and timelines for each phase or task."

9. Resources

 "Lists the resources required for the project, including manpower, materials, and financial
resources."

10. Findings and Analysis

 "Presents the results of the project with detailed analysis, supported by charts, graphs, or
tables as needed."

11. Risk Assessment

 "Identifies potential risks encountered during the project and the measures taken to
mitigate them."

12. Financial Overview

 "Includes the project budget, expenditure details, and cost-benefit analysis."

13. Recommendations

 "Provides actionable suggestions based on the project's findings and outcomes."

14. Conclusion

 "Summarizes the project's achievements, lessons learned, and overall impact."

15. Appendices

 "Includes additional materials such as raw data, detailed calculations, or supplementary

documents."

16. References

 "Lists all the sources, literature, and materials cited in the project report."

17. Acknowledgments

 "Acknowledges individuals or organizations that contributed to the project's success."