ASha PROJECT FORMULATION Slidehshare.pptx

Project formulation

1. P24CN102 PROJECT FORMULATION AND APPRAISAL Dr.P.Asha 1

2. Unit 1 Project Formulation 2

3. Project “A temporary  endeavour  undertaken to create a unique product, service, or result”. It is usually a one-time activity with a well defined set of desired end results. 3

4. Project includes any non repetitive activity; a low-volume, high variety activity; a temporary endeavour undertaken to create a unique product or service; any activity with a start and finish; A unique set of co- ordinated activities, with definite starting and finishing points, undertaken by an individual or  organisation  to meet specific performance objectives within schedule, cost and performance parameters. 4

5. https://ebooks.inflibnet.ac.in/mgmtp09/chapter/meaning-and-concept-of-a-project/ 5

6. Capital investments 6

7. Importance of capital investment 7

8. Difficulties in capital investment 8

9. Generation of ideas 9

10. Stimulating Flow of ideas Ex. Bell Telephone Lab & 3M corporation 10

11. Monitoring the Environment – An Organization should systematically monitor the environment and assess its competitive abilities in order to profitably exploit opportunities present in the environment. The key sectors of the environment that are to be studied are :- (a) Economic Sector – It includes, State of economy, Overall rate of Growth, Growth of primary, secondary and tertiary sectors, Inflation rate, Linkage with world economy, BOP situation, Trade Surplus/Deficit. (b) Government Sector – It includes, Industrial policy, Government programmes and projects, Tax framework, Subsidies, incentives, concessions, Import and export policies, Financing norms. https://dspmuranchi.ac.in/pdf/Blog/BBA-Sem.%20VI-Project%20Management-Unit%201-Generation%20and%20Screening%20of%20a%20project%20idea.pdf 11

12. (c) Technological Sector – It includes, State of technology, Emergence of new technology, Receptiveness of the industry, Access to technical know how. (d) Socio-demographic sector – It Includes, Population trends, Income distribution, Educational profile, Employment of women, Attitude towards consumption and investment. (e) Competition Sector – It includes, No. of firms and their market share, Degree of homogeneity and production differentiation, Entry barriers, Marketing policies and prices, Comparison with substitutes in terms of quality/price/appeal etc. (f) Supplier Sector – Availability and cost of raw material, energy and money 12