A presentation on project formulation submitted at the college level. Data is gathered from different websites including SlideShare itself and book on Entrepreneurship Development Program by S.P.Sukhija and Sangam Kapoor.

2. What is a project?
 A project is a complex of non-routine activities that must be completed
with a set amount of resources and within a set time interval.
 It is carried out in an organized manner with a clearly pre-defined need
, start point and end-point.
 A project follows a hierarchy of assumptions and objectives:
 Inputs
 Activities
 Proposals
 Outputs
 Goals

3. Entrepreneur
Person with
innovative ideas
Entrepreneurship
OutcomeProcess or Action
Enterprise

4. Introduction
 Project formulation is a step-by-step investigation of
resources and development of project idea for achieving
the objective of taking an investment decision.
 It is stepping stone which involves the joint efforts of team
of experts.
 It presents project related facts before the
interested parties.

5.  Project formulation is a concise , exact statement of a
project to set the boundaries or limits of work to be
performed by the project.
 It is one of the stages in life cycle of a project

6. Requirements of Project
Formulation
 Road map for the new venture.
 Capital investment.
 Government Regulations.
 Skilled Workforce.
 Technology.

7. Factors affecting Project
Formulation:
 Appropriate selection of technology.
 Influence of external economies.
 Qualified personnel.
 Resource mobilization.
 Knowledge about government regulations.
 Other factors.

8. Scope of Project Formulation
 General information.
 Product.
 Market potential.
 Plant and machinery.
 Location.
 Raw material.
 Utilities.
 Capital cost.
 Working capital.
 Manufacturing cost.
 Financial analysis.

9. Aspects of Project Formulation
 Feasibility analysis
 Techno economic analysis
 Project design and network analysis
 Input analysis
 Financial analysis
 Social cost benefit analysis
 Managerial analysis
 Operating market appraisal
 Environment appraisal

10. Aspects of Project Formulation(1)
 Feasibility analysis:
 Done to know whether project idea should be developed further or
not.
 Carried out in three stages:
 Pre-feasibility study: Preliminary assessment of project idea.
 Feasibility study: Covers all aspect of investment project even
alternate solutions.
 Project report: Enables concerned authorities to take objective
decisions on project.

11. Aspects of Project Formulation(2)
 Techno economic analysis:
Categorized into two parts:
 Techno analysis: looks into adequacy of proposed plant and
equipment.
 Economic analysis: The size of project and technology to be used.
 Project design and Network analysis:
 Defines individual activities comprising a project.
 Identifies the flow of events.

12. Aspects of Project Formulation(3)
 Input analysis:
 Concerned with identification and evaluation of project inputs.
 Uses network plan for developing input characteristics of project.
 Financial analysis:
 A detailed coverage of financial aspects such as cost estimation, profit
analysis, production cost.
 One of the most important aspect to be taken care of before setting up an
enterprise.
 Social cost benefit analysis:
 Developed for evaluating investment projects from the point of view of
society as a whole.

13. Aspects of Project Formulation(4)
 Managerial appraisal:
 Talent of promoter is taken into consideration.
 Also includes assessment of technical and managerial personnel
working, their training etc.
 Operating market appraisal:
 Helps entrepreneur to anticipate possible marks for the products.
 Demand forecasting, lifetime segmentation are some methods for
anticipating the market.
 Environmental analysis:
 Refers to environment planning, protection, monitoring, research,
education, conservation of resources etc.

14.  Any queries are welcome…