Project Development

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DM 211 Project Development & Management

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Project Development

  1. 1. PROJECT DEVELOPMENT AND DESIGN Reported by: GILBERT M. NARCISO Submitted to: JOSEFINA B. BITONIO, DPA DM 211 Project Development & Management 2nd Semester 2013-2014
  2. 2. INTRODUCTION    PROJECT – consists of a temporary endeavor undertaken to create a unique product, service or results or sometimes to improve. DEVELOPMENT – stages to go through DESIGN – is the creation of a plan or convention for the construction of an object or a system
  3. 3. PROJECT FORMULATION     Taking a first look carefully or critically at the project idea. Carefully weighing its various components Assessment of the various aspects of an investment It is an important stage in the preinvestment phase.
  4. 4. STAGES OF PROJECT FORMULATION 1. Feasibility Analysis 2. Techno – Economic Analysis 3. Project Design and Network Analysis 4. Input Analysis 5. Financial Analysis 6. Cost – Benefit Analysis 7. Pre – Investment Analysis
  5. 5. 1. FEASIBILITY ANALYSIS -First stage in project formulation -Examination to see whether to go in for a detailed investment proposal or not -Screening for internal and external constraints Conclusion could be; • The project idea seems to be feasible • The project idea is not a feasible one • Unable to arrive at a conclusion for want of adequate data
  6. 6. 2. TECHO-ECONOMIC ANALYSIS Screens the idea to Estimate of potential of the demand of the goods/services choice of optimal technology This analysis gives the project platform for the preparation of detailed project design
  7. 7. 3. PROJECT DESIGN AND NETWORK ANALYSIS - It is the heart of the project entity - It defies the sequence of events of the project - Time is allotted to for each activity - It is presented in a form of a network drawing - It helps to identify project inputs, finance needed and benefit profile of the project
  8. 8. 4. INPUT ANALYSIS -Its assesses the input requirements during the construction and operation of the project. -It defies the inputs required for each activity -Inputs include materials, human resource -It evaluates the feasibility of the project from the point of view of the availability of necessary resources -This aids in accessing project cost
  9. 9. 5. FINANCIAL ANALYSIS      It involves estimates the project cost, operating cost and fund requirements It helps in comparing various project proposals on a common scale Analytical tools used are discounted cash flow, cost volume profit relationship and ratio analysis Investment decision involve commitment of resources in future, with a long time horizon It needs caution and foresight in developing financial forecast
  10. 10. 6. COST BENEFIT ANALYSIS    The overall worth of a project is considered The project design forms the basis of evaluation It considers costs that all entities have to bear and the benefit connected to it
  11. 11. 7. PRE INVESTMENT ANALYSIS   The results obtained in previous stages are consolidated Helps the project-sponsoring, the project implementing body and the external consulting agencies to accept/reject the proposal
  12. 12. PREPARATION OF FULL-BLOWN PROJECT FEASIBILITY STUDY What is Feasibility?   As the name implies, a feasibility study is an analysis of the viability of an idea. The feasibility study focuses on helping answer the essential question of “should we proceed with the proposed project idea?”
  13. 13. FEASIBILTY ANALYSIS   Feasibility study is an analytical tool used during the project planning process, shows how a business would operate under an explicitly stated set of assumptions. These assumptions include the technology used (the facilities, types of equipment, manufacturing process, etc.) and the financial aspects of the project (capital needs, volume, cost of goods, wages etc.)
  14. 14. TYPES OF FEASIBILITY Market Environmental Political Safety Social Cultural Financial Economic Managerial Technical
  15. 15. TYPES OF FEASIBILITY 1. Technical Feasibility   This area reviews the engineering feasibility of the project, including structural, civil and other relevant engineering aspects necessitated by the project design. The technical capabilities of the personnel as well as the capability of the projected technologies to be used in the project are considered.
  16. 16. TYPES OF FEASIBILITY 2. Managerial Feasibility   Demonstrated management capability and availability, employee involvement, and commitment are key elements required to ascertain managerial feasibility This addresses the management and organizational structure of the project, ensuring that the proponent’s structure is as described in the submittal and is well suited to the type of operation undertaken.
  17. 17. TYPES OF FEASIBILITY 3. Economic Feasibility This involves the feasibility of the proposed project to generate economic benefits.  A benefit-cost analysis (addressing a problem or need in the manner proposed by the project compared to other, the cost of other approaches to the same or similar problem) is required. A breakeven analysis when appropriate is also a required aspect of evaluating the economic feasibility of a project. (This addresses fixed and variable costs and utilization/sales forecasts). 
  18. 18. TYPES OF FEASIBILTY 4. Financial Feasibility   Financial feasibility should be distinguished from economic feasibility. Financial feasibility involves the capability of the project organization to raise the appropriate funds needed to implement the proposed project
  19. 19. TYPES OF FEASIBILITY 5. Cultural Feasibility    Cultural feasibility deals with the compatibility of the proposed project with the cultural environment of the project. In labor-intensive projects, planned functions must be integrated with the local cultural practices and beliefs. For example, religious beliefs may influence what an individual is willing to do or not do.
  20. 20. TYPES OF FEASIBILITY 6. Social Feasibility  Social feasibility addresses the influences that a proposed project may have on the social system in the project environment.  The ambient social structure may be such that certain categories of workers may be in short supply or nonexistent.
  21. 21. TYPES OF FEASIBILITY 7. Safety Feasibility  Safety feasibility is another important aspect that should be considered in project planning.  Safety feasibility refers to an analysis of whether the project is capable of being implemented and operated safely with minimal adverse effects on the environment.
  22. 22. TYPES OF FEASIBILITY 8.    Political Feasibility Political consideratons often dictate directions for a proposed project. This is particularly true for large projects with significant visibility that may have significant government inputs and political implications. For example, political necessity may be a source of support for a project regardless of the project's merits.
  23. 23. TYPES OF FEASIBILITY 9. Environmental Feasibility   Often a killer of projects through long, drawn-out approval processes and outright active opposition by those claiming environmental concerns. This is an aspect worthy of real attention in the very early stages of a project
  24. 24. TYPES OF FEASIBILITY 10. Market Feasibility  This area should not be confused with the Economic Feasibility. The market needs analysis to view the potential impacts of market demand, competitive activities, etc. and market share available.  Possible competitive activities by competitors, whether local, regional, national or international
  25. 25. DETAILED PROJECT DESIGN What’s your own Project Design?
  26. 26. PROJECT DESIGN Before you begin writing you should be able to answer the following questions: • Why are you doing this project? • What will you be doing? • How will you be doing it? • Who will be doing it? • Where will it be done? • How long will it take?
  27. 27. PROJECT PROPOSAL Project proposals - are documents designed to present a plan of action, outline the reasons why the action is necessary The guidelines usually identify five key components or sections of any project proposal: the introduction, background, strategy, budgeting or financing, and outcome
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