Project identification & classification

Project identification & classification

1. Project Identification & Classification Revathy Rajasekaran Coordinator, Edc V.V.Vanniaperumal College for Women Virudhunagar V.V.Vanniaperumal College for Women

2. Meaning of Project Project is the scientifically evolved work plan devised to achieve a specific objectives within a specified period of time. A project involves capital investment for the purpose of developing facilities to provide goods or services. It is interrelated activities to achieve a specific objective. Project involve allocation & consumption of resources on one hand & generation of goods and service on other hand V.V.Vanniaperumal College for Women

3. Project Classification 1.Quantifiable & Quantifiable Projects Quantifiable Projects The projects in which quantitative assessment of benefits can be made. Ex: Power generation, Mineral development Non-Quantifiable Projects The projects where the benefits & outcomes cannot be measured. Ex: Heath, Education, Defense V.V.Vanniaperumal College for Women

4. Project Classification 2. Sectoral Projects Agricultural & Allied Sector Irrigation & Power Sector Industry & Mining Sector Transport & Communication Sector Social Service Sector Miscellaneous Sector V.V.Vanniaperumal College for Women

5. Project Classification 3.Techno –Economic Projects Factor intensity oriented classification Based on the large investments in factor of production Plant & machinery (capital-intensive) Human resources ( labour -intensive) Causation Oriented classification Demand based projects Raw material based projects Magnitude oriented classification The size of investment classifies the project as large-scale, medium scale, small scale projects V.V.Vanniaperumal College for Women

6. Project Classification 4.Finacial Institution Classification Based on the age, experience & purpose New projects Expansion projects Modernization projects Diversification projects Social Service projects Welfare projects Service projects R & D projects Educational projects V.V.Vanniaperumal College for Women

7. Project Identification Project Identification is concerned with the collection, compilation and analysis of economic data for the eventual purpose of locating possible opportunities for investment. Opportunity are 3 types Additive - better utilization of existing resources without change in the character of business. Complementary - introduction of new ideas and do certain amount of change in existing structure. Break-through - fundamental change in both the structure & character of business. V.V.Vanniaperumal College for Women

8. Every project has 3 dimensions- inputs, outputs, social cost and benefits. Input - what the project consume in terms of raw materials, energy, manpower, finance and organizational setup. Output - what project generate in form of goods and services employment, revenue etc. Social cost & Benefit - impact on the society; sacrifice & benefit accrue to the society. Project Identification V.V.Vanniaperumal College for Women

9. Internal Constraints The lack of entrepreneur to prepare the feasibility report and rely more on outside consultants for preparing report. The entrepreneur within the budgeted cost and time schedule cannot develop project management systems. The project objectives are determined by top executives. The project management team is not involved in determining it and it is unrealistic for them to achieve it. The availability of necessary physical & non-physical resources V.V.Vanniaperumal College for Women

10. External Constraint The external constraints are the project environment-people, things and situation outside the project. Social taboos, government policies and capital market. The external environment factors like nature, size, location are limiting factor when project does not conform to the socio-economic objectives of the country. Government policies & regulations are the hurdle – delay in approval of licensing, environment clearance, foreign collaboration permit. The financial institution cumbersome procedures and documentation system delay in financing V.V.Vanniaperumal College for Women

11. Project Objectives Project objective say what the project is expected to achieve. Essential of project objectives are: Specific, not general Not complex Measurable, tangible and verifiable Realistic & attainable Consistent within resource available or anticipated Consistent with organisational plans & policies V.V.Vanniaperumal College for Women

12. Project objectives aimed to complete project on time, within the given cost complete with profit to the company. Retentive objective- concerned with retention and preservation of resources like money, time, energy, equipment & skill. Acquisitive objectives- involve acquisition of resource or attaining states that organisation do not have. Project Objectives V.V.Vanniaperumal College for Women

13. Project objectives are economical & social in nature. Economical objectives are profit oriented. Concerned with financial cost and benefits of project. Social objectives are service oriented. The process of project development involves stage by stage development of project idea into investment proposition. The output of one stage acts as the input of the next. It is required for backward look to recheck and modify the initial assumptions. Project Objectives V.V.Vanniaperumal College for Women