entrepreneurship & project management

7. ! Project

8. Plan what you DO and DoPlan what you DO and Do
what you Planedwhat you Planed
8

9. Project initiation
• . Business Case
Project initiation
– It provides the necessary information from a business
standpoint whether or not the project is worth the required
investment
F E t l P j t Th B i b i d f– For External Projects, The Business case can be received from
the requesting organization or customer as part of bid
document
– The business case is created as a result of one or more of theThe business case is created as a result of one or more of the
following
• Market Demand
• Organizational Need
• Customer Request
• Technological Advance
• Legal Requirement
• Social Need• Social Need

10. Business plan

11. Feasibility Study
• Marketing Study
Feasibility Study
g y
– Is There a market for the product of this project
• Market gap analysis
• Demand forecasting
• Technical Analysis and alternatives• Technical Analysis and alternatives
– What are the possible options to build this project
• Location
• Technology
• Raw MaterialRaw Material
• Labor
11

12. Feasibility Study
• Economical Analysis
Feasibility Study
co o ca a ys s
– Cash Flow Projections
• Cash out:
– Initial Investment
– Operation costs throughout the project lifetime
• Expected Income (Revenues) Throughout the lifetime of the
jproject
– Financial Measures
• Return on Investment (ROI)Return on Investment (ROI)
• Break‐Even Point
• Net Present Value (NPV)

13. How do any project workHow do any project work
vity
Monitor & Control
Activ
Planning
Executing
elof
Initiating
Closing
Leve
Time

16. Project constraints

17. Project StakeholdersProject Stakeholders

18. Logic steps for any projectLogic steps for any project
• Causal (logical)Causal (logical)
– It is impossible to edit a text before it is written
• Resource constraintsResource constraints
– It is logically possible to paint four walls in a room
simultaneously but there is only one painter
• Discretionary (preferential)
– I want to paint the living room before painting the p g f p g
dining room, although I could do it the other way
round, too

19. Start to startFinish to start
Start to finish Finish to finish
Complete projectComplete project

20. Types of Organizational Structures
The three types of organizational structures are:
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21. Steps for managing change in a project
#1
• Understand the change
#2
• Evaluate Impact
#3
• Create and Evaluate Alternative options
#4
• Select Most Suitable Option
#5
• Get Internal Buy‐In from Project team and sponsor
#6
• Get Customer Buy‐In if Required