2. Three Stages in Project Life Cycle
• 1.The Pre-investment Phase
• 2.The Construction Phase
• 3. The Normalisation Phase
3. • 1.Pre Investment Stage
• First phase in the life of the project
• Concerned with objective formulation, demand forecasting, selection
of optimal strategy, evaluation of input characteristics, projections of
the financial profile, cost-benefit analysis and pre-investment
appraisal.
• During this phase project idea is developed into an investment
proposition.
4. • 2. The construction phase
• After investment decision this phase begins
• Consists of developing the infrastructure for the project
• Resources are invested during the phase in building the basic assets
of the project
• Assets may be land and buildings, plant and machinery, ancillary
accommodation, communication services , control systems and
marketing organization
• Developing necessary manpower resources also comes under this
phase.
5. • 3. The Normalisation Phase
• After trial run of the project framework
• Involves routine procedure performed in a cyclical order
• Production of goods and services takes place
• Provision has to be made for raw materials and other resources required
for production
• Determined by the analysis of process and sequence of process operation
• The assets created during construction phase are utilised
• Proper utilisation is required to achieve the objectives
