This document provides an overview of project formulation, including its key elements and significance. It discusses the need for project formulation, highlighting issues like technology selection, resource constraints, and legal/policy impacts. The main elements of project formulation are identified as feasibility analysis, techno-economic analysis, project design/network analysis, input analysis, financial analysis, social cost-benefit analysis, and project appraisal. The document also distinguishes project formulation from a detailed project report, and outlines the steps in India's planning commission's project appraisal process.
This document discusses different organizational models for project management: functional, pure project, and matrix.
The functional model involves projects being managed within existing functional departments, allowing flexibility in staffing but risking that projects are not the primary focus.
The pure project model makes projects independent from the main organization, giving full responsibility and authority to project managers but risking duplication of resources across multiple projects.
The matrix model aims to combine advantages of the functional and pure project models by drawing on existing departments' expertise while also giving projects dedicated resources and leadership. It represents a middle ground between the two extremes.
This document provides an overview of key concepts in project management including:
- Defining a project and the goals of project management to complete tasks on time and within budget.
- Common causes of project failure such as lack of commitment and poor planning.
- Tools used in project management including PERT charts, Gantt charts, and joint project planning.
- The six main activities in project management: defining scope, identifying tasks, estimating durations, specifying dependencies, assigning resources, and monitoring progress.
1. The chapter discusses project planning, including defining the work breakdown structure (WBS), project activities, logical relationships between activities, activity durations and costs.
2. Planning involves breaking down a project into definable tasks and establishing logical dependencies between tasks. It answers what work needs to be done, how to do it, and who will do it.
3. Effective planning requires generating a WBS to list all activities, determining activity sequences and relationships, and estimating activity time, cost and resource needs.
This document provides information about a course on project design and management at Adigrat University's Department of Geography and Environmental Studies. It includes the course description, objectives, and content. The course aims to acquaint students with the principles and techniques of project planning, implementation, and evaluation. It covers topics like the project cycle, project identification, project management disciplines, and project writing. The document is compiled by Dr. Zubairul Islam and provides details about the course structure and chapters to be covered.
The Accounting Standards Board is seeking input on developing authoritative guidance for accounting for biological assets and agricultural produce by private enterprises. This is due to a lack of guidance currently causing diversity in practice. The Discussion Paper outlines key issues, preliminary views of the AcSB, and seeks comments from stakeholders, especially those in agriculture. It aims to determine whether a new standard should be developed and how it should address recognition, measurement, impairment and disclosure requirements for biological assets.
The document discusses various aspects of project termination including:
1. Activities after project completion involve closing tasks, payments, and documenting lessons learned.
2. Projects can terminate through extinction (success), addition (institutionalization), integration (distribution to parent organization), or starvation (budget cuts).
3. A final report summarizes all project stages and allows readers to recreate the project steps. It includes sections like abstract, introduction, background, design, realization, evaluation, lessons learned, and references.
The document outlines the key roles and responsibilities of an Infrastructure Project Manager. It discusses managing projects through their definition, planning, execution and closure. Specifically, it covers responsibilities like securing resources, managing timelines and budgets, defining and communicating scope, ensuring quality, reporting on progress, managing risks, and leading project teams. The overall aim of an Infrastructure Project Manager is to successfully deliver projects by meeting requirements and exceeding expectations through teamwork and effective communication.
The document provides guidance on project formulation and feasibility reports. It discusses the stages of project formulation including conception, analysis of related aspects, formulation, and design. It outlines the sequential stages of project formulation including feasibility analysis, techno-economic analysis, project design, input analysis, financial analysis, cost-benefit analysis, and pre-investment analysis. The document also discusses the meaning, scope, contents and significance of feasibility reports and provides Planning Commission guidelines for preparing feasibility reports.
This document discusses different organizational models for project management: functional, pure project, and matrix.
The functional model involves projects being managed within existing functional departments, allowing flexibility in staffing but risking that projects are not the primary focus.
The pure project model makes projects independent from the main organization, giving full responsibility and authority to project managers but risking duplication of resources across multiple projects.
The matrix model aims to combine advantages of the functional and pure project models by drawing on existing departments' expertise while also giving projects dedicated resources and leadership. It represents a middle ground between the two extremes.
This document provides an overview of key concepts in project management including:
- Defining a project and the goals of project management to complete tasks on time and within budget.
- Common causes of project failure such as lack of commitment and poor planning.
- Tools used in project management including PERT charts, Gantt charts, and joint project planning.
- The six main activities in project management: defining scope, identifying tasks, estimating durations, specifying dependencies, assigning resources, and monitoring progress.
1. The chapter discusses project planning, including defining the work breakdown structure (WBS), project activities, logical relationships between activities, activity durations and costs.
2. Planning involves breaking down a project into definable tasks and establishing logical dependencies between tasks. It answers what work needs to be done, how to do it, and who will do it.
3. Effective planning requires generating a WBS to list all activities, determining activity sequences and relationships, and estimating activity time, cost and resource needs.
This document provides information about a course on project design and management at Adigrat University's Department of Geography and Environmental Studies. It includes the course description, objectives, and content. The course aims to acquaint students with the principles and techniques of project planning, implementation, and evaluation. It covers topics like the project cycle, project identification, project management disciplines, and project writing. The document is compiled by Dr. Zubairul Islam and provides details about the course structure and chapters to be covered.
The Accounting Standards Board is seeking input on developing authoritative guidance for accounting for biological assets and agricultural produce by private enterprises. This is due to a lack of guidance currently causing diversity in practice. The Discussion Paper outlines key issues, preliminary views of the AcSB, and seeks comments from stakeholders, especially those in agriculture. It aims to determine whether a new standard should be developed and how it should address recognition, measurement, impairment and disclosure requirements for biological assets.
The document discusses various aspects of project termination including:
1. Activities after project completion involve closing tasks, payments, and documenting lessons learned.
2. Projects can terminate through extinction (success), addition (institutionalization), integration (distribution to parent organization), or starvation (budget cuts).
3. A final report summarizes all project stages and allows readers to recreate the project steps. It includes sections like abstract, introduction, background, design, realization, evaluation, lessons learned, and references.
The document outlines the key roles and responsibilities of an Infrastructure Project Manager. It discusses managing projects through their definition, planning, execution and closure. Specifically, it covers responsibilities like securing resources, managing timelines and budgets, defining and communicating scope, ensuring quality, reporting on progress, managing risks, and leading project teams. The overall aim of an Infrastructure Project Manager is to successfully deliver projects by meeting requirements and exceeding expectations through teamwork and effective communication.
The document provides guidance on project formulation and feasibility reports. It discusses the stages of project formulation including conception, analysis of related aspects, formulation, and design. It outlines the sequential stages of project formulation including feasibility analysis, techno-economic analysis, project design, input analysis, financial analysis, cost-benefit analysis, and pre-investment analysis. The document also discusses the meaning, scope, contents and significance of feasibility reports and provides Planning Commission guidelines for preparing feasibility reports.
The document provides information on project formulation and management. It defines what constitutes a project, outlines key project characteristics such as having a unique purpose and being temporary. It also discusses the importance of project management, noting that it enables systematic planning and helps ensure projects are completed on time and within budget. The document emphasizes that project managers must balance project scope, time and cost while also ensuring quality. It provides an overview of the typical project life cycle and elements to include in a strong project proposal, such as the problem statement, objectives, implementation plan and budget.
You may have a great idea for a project, but without planning, your project will remain just that — an idea. Simply put, planning is the critical step to take a project from an intangible theory to a tangible result.
Project planning is part of project management, which relates to the use of schedules such as Gantt charts to plan and subsequently report progress within the project environment. Project planning can be done manually or by the use of project management software.
Managing infrastructure projects requires a professional orientation, especially so in developing economies like India. Herein a materials management and suppl chain management orientation is taken to highlight some of the successful projects.
This document discusses the key stages in project formulation and development, including feasibility analysis, design, and analysis. It outlines 10 types of feasibility that should be considered: technical, managerial, economic, financial, cultural, social, safety, political, environmental, and market. The stages of project formulation are described in detail, from initial feasibility analysis through to pre-investment analysis. Developing a detailed project design involves determining the purpose, activities, methods, roles, location, timeline, and presenting a formal proposal. A comprehensive feasibility study evaluates all relevant factors to determine if a project should proceed.
This document discusses project management and provides information about defining, planning, executing, monitoring, and closing projects. It defines what a project is and lists some key characteristics. It explains that projects have objectives that should be specific, measurable, agreed upon, realistic and time-related. The document also discusses challenges that can impact projects like costs, quality, time, organizational politics and external issues. It describes the tasks of a project manager and phases in a project life cycle.
The document discusses the key aspects of capital budgeting and project management. It covers the capital budgeting process, types of projects, project organization structures, stages of setting up a project including feasibility analysis, and techniques for project planning and control such as work breakdown structure, critical path method, reserve activity target scheduling and line of balance. The overall goal of capital budgeting is to identify investments that will increase business value by generating returns higher than their costs.
This document discusses the key processes involved in project management. It begins by explaining the importance of understanding stakeholders and their various needs and perspectives. It then discusses factors that help projects succeed, with executive support and user involvement being the most important. The document outlines the typical project management processes of initiation, planning, execution, control, and closure. It emphasizes the need for leadership, communication skills, and managing resources effectively. Developing an internal methodology tailored to an organization's specific needs is also recommended.
Project evaluation and implementation notes and questionsAnirban Chakraborty
The notes on "Project Evaluation and Implementation" was prepared with help of Professor Kaushik Banerjee. He is the Honorable Professor at Brainware Business School at Saltlake, Kolkata.
The document provides guidance on using the logical framework approach (LFA) to design projects in a systematic and logical way. It discusses key aspects of the LFA including problem analysis, objectives analysis, strategy analysis, developing the logframe matrix, activity planning, and resource planning. The LFA helps ensure problems are analyzed systematically, objectives are clearly defined and measurable, and risks and assumptions are considered. Using the LFA helps make project proposals more coherent and increases the chances of securing donor funding.
This document provides an overview of the concepts and topics covered in a Project Management course. It includes 6 units:
1. Introduction to key project management concepts like the project life cycle.
2. Project identification and formation, including identifying opportunities and selecting projects.
3. Project appraisal involving market, technical, financial, and socio-economic analysis.
4. Project planning and scheduling from designing to time and cost estimation.
5. Project execution and administration including contracting, organization, communication and cost/time monitoring.
6. Project control techniques like PERT and CPM for monitoring and reviewing projects.
This document discusses key aspects of project management including definitions, characteristics, types, and stages of projects. It defines a project as a specific activity with a clear start and end intended to achieve an objective. Projects have defined objectives, interrelated activities, and a life cycle from initiation to completion. They are undertaken to address a specific need. The stages of project management include planning, implementation and monitoring, and evaluation. Planning establishes objectives, activities, resources, schedules, and responsibilities. Implementation involves executing the project plan. Monitoring tracks progress against the plan. Evaluation assesses achievement of objectives and identifies lessons.
This document provides an overview of project management concepts including:
- The definition of a project as having a purpose, being realistic, limited in time and space, complex, collective, unique, an adventure, and assessable.
- Project management is organizing people, equipment, and procedures to complete a project on time and budget. The typical project management process includes definition, planning, execution, control, and closure.
- Key parameters that constrain every project are scope, quality, time, cost, and resources. The scope triangle illustrates the relationship between these parameters.
- Other concepts discussed include the differences between a project and a program, project creep which can jeopardize objectives, and notes on specific types of
5 Project Risk Identification Tools I Use & How You Can Use Them TooSHAZEBALIKHAN1
Risk is an inherent property of a project. Risk identification is the first step in risk management. The article details the 5 risk identification tools that have helped me in my projects. The explanation shall enable you to use the risk identification techniques for your projects.
Principles of the project management
Project and development life cycles
Project phase
Phase gate
Project management processes
Project management process groups
Project management knowledge areas
This document provides an introduction and overview of project planning. It discusses key concepts like defining the project scope, generating a work breakdown structure (WBS) and organizational breakdown structure (OBS), identifying activity relationships and durations, and developing a project network. The roles of a project manager are outlined. Project planning involves establishing objectives, determining resources, and forming an organization. Methods for representing project networks include activity-on-node (AON) and activity-on-arrow (AOA) diagrams. Planning is an essential part of project management that sets the roadmap to complete tasks on schedule and within budget.
Project formulation for social welfare in social welfare administrationPoojaSharma1336
Project formulation for social welfare in social welfare administration, social work, social welfare administration, administration, formulation of the project, process of project formulation, steps of project formulation
The submitted project comprise of the project management related documentation and supporting material that is required in the project planning and management cycle.
The document discusses the process of project formulation, which involves systematically developing and investigating project ideas to determine if they should be invested in. It involves experts from various fields conducting feasibility analyses from technical, market, financial, and social perspectives. If the analyses show a project is feasible, a detailed project report is created that serves as the work plan for implementation and helps obtain necessary approvals and funding. Project formulation helps decide whether to accept or reject a project idea before significant resources are invested.
The document discusses various aspects of project appraisal, including market appraisal, technical appraisal, financial appraisal, and economic appraisal. It provides details on steps involved in market and demand analysis, sources of secondary information for feasibility studies, and how to determine a project rating index. Key aspects covered include analyzing aggregate future demand, competition, and pricing options for market appraisal, and evaluating costs, profitability, and risk for financial appraisal.
This document outlines the phases of project management, including project identification, definition, feasibility studies, and implementation. It discusses the viewing and screening processes used to identify potential projects. Key steps in feasibility studies are described such as determining requirements, objectives, barriers, and preferences. Feasibility studies evaluate projects from technical, financial, organizational, and socioeconomic perspectives. Effective project budgeting and fundraising are also covered, including tips for packaging proposals and running a successful fundraising campaign.
The document discusses various aspects of project appraisal, including market appraisal, technical appraisal, financial appraisal, and economic appraisal. It covers topics such as the information required for market analysis, demand forecasting, assessing materials and equipment needs, cost projections, and measuring the costs and benefits of a project. Market appraisal considers factors like future demand, market share, competition, location, and technological changes.
The document provides information on project formulation and management. It defines what constitutes a project, outlines key project characteristics such as having a unique purpose and being temporary. It also discusses the importance of project management, noting that it enables systematic planning and helps ensure projects are completed on time and within budget. The document emphasizes that project managers must balance project scope, time and cost while also ensuring quality. It provides an overview of the typical project life cycle and elements to include in a strong project proposal, such as the problem statement, objectives, implementation plan and budget.
You may have a great idea for a project, but without planning, your project will remain just that — an idea. Simply put, planning is the critical step to take a project from an intangible theory to a tangible result.
Project planning is part of project management, which relates to the use of schedules such as Gantt charts to plan and subsequently report progress within the project environment. Project planning can be done manually or by the use of project management software.
Managing infrastructure projects requires a professional orientation, especially so in developing economies like India. Herein a materials management and suppl chain management orientation is taken to highlight some of the successful projects.
This document discusses the key stages in project formulation and development, including feasibility analysis, design, and analysis. It outlines 10 types of feasibility that should be considered: technical, managerial, economic, financial, cultural, social, safety, political, environmental, and market. The stages of project formulation are described in detail, from initial feasibility analysis through to pre-investment analysis. Developing a detailed project design involves determining the purpose, activities, methods, roles, location, timeline, and presenting a formal proposal. A comprehensive feasibility study evaluates all relevant factors to determine if a project should proceed.
This document discusses project management and provides information about defining, planning, executing, monitoring, and closing projects. It defines what a project is and lists some key characteristics. It explains that projects have objectives that should be specific, measurable, agreed upon, realistic and time-related. The document also discusses challenges that can impact projects like costs, quality, time, organizational politics and external issues. It describes the tasks of a project manager and phases in a project life cycle.
The document discusses the key aspects of capital budgeting and project management. It covers the capital budgeting process, types of projects, project organization structures, stages of setting up a project including feasibility analysis, and techniques for project planning and control such as work breakdown structure, critical path method, reserve activity target scheduling and line of balance. The overall goal of capital budgeting is to identify investments that will increase business value by generating returns higher than their costs.
This document discusses the key processes involved in project management. It begins by explaining the importance of understanding stakeholders and their various needs and perspectives. It then discusses factors that help projects succeed, with executive support and user involvement being the most important. The document outlines the typical project management processes of initiation, planning, execution, control, and closure. It emphasizes the need for leadership, communication skills, and managing resources effectively. Developing an internal methodology tailored to an organization's specific needs is also recommended.
Project evaluation and implementation notes and questionsAnirban Chakraborty
The notes on "Project Evaluation and Implementation" was prepared with help of Professor Kaushik Banerjee. He is the Honorable Professor at Brainware Business School at Saltlake, Kolkata.
The document provides guidance on using the logical framework approach (LFA) to design projects in a systematic and logical way. It discusses key aspects of the LFA including problem analysis, objectives analysis, strategy analysis, developing the logframe matrix, activity planning, and resource planning. The LFA helps ensure problems are analyzed systematically, objectives are clearly defined and measurable, and risks and assumptions are considered. Using the LFA helps make project proposals more coherent and increases the chances of securing donor funding.
This document provides an overview of the concepts and topics covered in a Project Management course. It includes 6 units:
1. Introduction to key project management concepts like the project life cycle.
2. Project identification and formation, including identifying opportunities and selecting projects.
3. Project appraisal involving market, technical, financial, and socio-economic analysis.
4. Project planning and scheduling from designing to time and cost estimation.
5. Project execution and administration including contracting, organization, communication and cost/time monitoring.
6. Project control techniques like PERT and CPM for monitoring and reviewing projects.
This document discusses key aspects of project management including definitions, characteristics, types, and stages of projects. It defines a project as a specific activity with a clear start and end intended to achieve an objective. Projects have defined objectives, interrelated activities, and a life cycle from initiation to completion. They are undertaken to address a specific need. The stages of project management include planning, implementation and monitoring, and evaluation. Planning establishes objectives, activities, resources, schedules, and responsibilities. Implementation involves executing the project plan. Monitoring tracks progress against the plan. Evaluation assesses achievement of objectives and identifies lessons.
This document provides an overview of project management concepts including:
- The definition of a project as having a purpose, being realistic, limited in time and space, complex, collective, unique, an adventure, and assessable.
- Project management is organizing people, equipment, and procedures to complete a project on time and budget. The typical project management process includes definition, planning, execution, control, and closure.
- Key parameters that constrain every project are scope, quality, time, cost, and resources. The scope triangle illustrates the relationship between these parameters.
- Other concepts discussed include the differences between a project and a program, project creep which can jeopardize objectives, and notes on specific types of
5 Project Risk Identification Tools I Use & How You Can Use Them TooSHAZEBALIKHAN1
Risk is an inherent property of a project. Risk identification is the first step in risk management. The article details the 5 risk identification tools that have helped me in my projects. The explanation shall enable you to use the risk identification techniques for your projects.
Principles of the project management
Project and development life cycles
Project phase
Phase gate
Project management processes
Project management process groups
Project management knowledge areas
This document provides an introduction and overview of project planning. It discusses key concepts like defining the project scope, generating a work breakdown structure (WBS) and organizational breakdown structure (OBS), identifying activity relationships and durations, and developing a project network. The roles of a project manager are outlined. Project planning involves establishing objectives, determining resources, and forming an organization. Methods for representing project networks include activity-on-node (AON) and activity-on-arrow (AOA) diagrams. Planning is an essential part of project management that sets the roadmap to complete tasks on schedule and within budget.
Project formulation for social welfare in social welfare administrationPoojaSharma1336
Project formulation for social welfare in social welfare administration, social work, social welfare administration, administration, formulation of the project, process of project formulation, steps of project formulation
The submitted project comprise of the project management related documentation and supporting material that is required in the project planning and management cycle.
The document discusses the process of project formulation, which involves systematically developing and investigating project ideas to determine if they should be invested in. It involves experts from various fields conducting feasibility analyses from technical, market, financial, and social perspectives. If the analyses show a project is feasible, a detailed project report is created that serves as the work plan for implementation and helps obtain necessary approvals and funding. Project formulation helps decide whether to accept or reject a project idea before significant resources are invested.
The document discusses various aspects of project appraisal, including market appraisal, technical appraisal, financial appraisal, and economic appraisal. It provides details on steps involved in market and demand analysis, sources of secondary information for feasibility studies, and how to determine a project rating index. Key aspects covered include analyzing aggregate future demand, competition, and pricing options for market appraisal, and evaluating costs, profitability, and risk for financial appraisal.
This document outlines the phases of project management, including project identification, definition, feasibility studies, and implementation. It discusses the viewing and screening processes used to identify potential projects. Key steps in feasibility studies are described such as determining requirements, objectives, barriers, and preferences. Feasibility studies evaluate projects from technical, financial, organizational, and socioeconomic perspectives. Effective project budgeting and fundraising are also covered, including tips for packaging proposals and running a successful fundraising campaign.
The document discusses various aspects of project appraisal, including market appraisal, technical appraisal, financial appraisal, and economic appraisal. It covers topics such as the information required for market analysis, demand forecasting, assessing materials and equipment needs, cost projections, and measuring the costs and benefits of a project. Market appraisal considers factors like future demand, market share, competition, location, and technological changes.
This document discusses the process of project identification and selection. It begins by explaining the importance of understanding the operating environment and identifying emerging opportunities when choosing a project. Project ideas can come from various sources, including friends/relatives, technology developments, market research, and more. A screening process then evaluates ideas based on factors like compatibility, market viability, and costs to select viable projects. Effective project identification involves understanding local needs, resources, and priorities through surveys. Existing companies should also conduct a SWOT analysis to identify new project opportunities based on their internal strengths and weaknesses and external opportunities and threats. The overall goal of project identification is to select feasible, promising projects through thorough research and analysis.
IRJET- An Overview on Project ManagementIRJET Journal
This document provides an overview of project management. It discusses the importance of planning, scheduling, and controlling projects. Project planning involves defining objectives, tasks, resource requirements, and cost and duration estimates. Scheduling allocates resources and time to complete activities. Controlling establishes standards, measures performance, and identifies deviations to implement corrective actions. Project management techniques like bar charts, milestone charts, and network diagrams help define work, estimate schedules and costs, and identify potential delays. Proper planning, scheduling, and controlling of projects is necessary for their successful completion.
This document contains an assignment submitted by a group of 5 MBA students for their Project Management Fundamentals course. It includes a table of contents and 5 sections summarizing key concepts from their course units, including an introduction to projects and project management, factors in project formulation, procedures for project identification, project characteristics, and summaries of 5 course units. The group analyzed concepts such as feasibility studies, planning, monitoring and evaluation, and project termination. They provided examples of projects and discussed technical, financial, economic, risk, and management aspects of project identification and formulation.
The document discusses project planning, estimating, and feasibility analysis. It covers determining market feasibility, technical feasibility, financial feasibility, and economic feasibility of a project. Key aspects of feasibility analysis include demand study, technical study, capital cost estimates, profitability analysis, and cost-benefit analysis. Feasibility reports help answer questions about pursuing project objectives and determining if a project is practically possible.
PROJECT MANAGEMENT 1 STADIO SECOND YEAR.pdfAlison Tutors
This document comprises of notes from Chapter 1 and Chapter 4 from STADIO
Chapter 1 assesses the following :
- differentiating between different types of feasibility and detailing the process of conducting a feasibility study
-applying the best practice to create the components of the proposal
- applying the knowledge of project initiation process to both fictional and real-life cases and scenarios
Chapter 4 focuses on project stakeholders and scope.
The topic covers the following:
- explaining the role and importance of project stakeholders
- identifying project stakeholders in a project and the key characteristic of each
-create a project charter
- defining a project's scope and highlight its purpose
This document proposes a feasibility study to identify factors that would impact the growth of the blue economy in Europe. The study would use various analytical tools and research methodologies to examine market size, growth trends, stakeholders, risks, and other economic and environmental factors. The objectives are to identify innovations that could optimize profitability in the sector, strengthen market surveys and risk assessment, identify potential bottlenecks, and ensure the project's alignment with EU legal frameworks. A combination of desk research, stakeholder consultations, surveys, and analytical tools like SWOT and input-output analysis would be used to provide recommendations to maximize sustainable growth in the blue economy.
A feasibility study analyzes a project to determine if it is possible and viable. It considers economic, technical, legal, and scheduling factors. There are five types of feasibility studies: technical, economic, legal, operational, and scheduling. A feasibility study establishes if a project's requirements can be met within timeline and resource constraints. It helps assess demand, resources, impact, and timeline to determine a project's likelihood of success.
In our day today life we often need to manage project for various reasons. For efficiently
managing a project, project analysis, monitoring team development, controlling, Gantt chart,
critical paths, life cycles, consequences, administration panel are the crucial part. Project
administration is the craft of dealing with the undertaking and its deliverables with a perspective
to create completed items or administration. There are numerous routes in which a task can be
completed and the path in which it is executed is undertaking administration.
1) The document summarizes a seminar presentation on the importance of feasibility studies for hospital planning. It defines feasibility studies and discusses their various types and objectives.
2) The presentation notes that feasibility studies are important for hospital planning as they determine project viability, identify potential obstacles, and assess necessary funding. Feasibility studies also help narrow risks and identify accurate project outcomes.
3) Preparing a feasibility study report has several benefits, including determining if a project is allowed and under what terms, assessing property needs, and giving principals confidence to move a project forward.
This document discusses the process of project identification and screening. It begins by explaining the importance of pre-identification, which involves surveying, reviewing, and analyzing strategies, policies, resources, and socioeconomic data. It then outlines various sources that project ideas can emerge from at both the macro level, such as national policies and plans, and micro level, such as identifying unsatisfied demand. The document concludes by describing the initial screening process for proposed projects to evaluate their compatibility, costs, risks and other factors to determine which deserve further examination.
FIN320 – Gallaher – Prep for Exam 3 – Computational Questions
1. Smallville Courier is a small town newspaper, with revenues of $200,000 and pre-tax operating income of $40,000. It is considering starting an online edition that would be accessible at no cost to the general public and has collected the following information:
1. The initial cost of setting up the online edition is $25,000. That expense will be capitalized and depreciated using the MACRS three-year schedule (33%, 45%, 15%, 7%). There is no salvage value.
1. You expect advertising revenues from the site of $30,000 per year.
1. The annual operating cost of maintaining the online edition will be $15,000.
1. The cost of capital is 15% and the tax rate is 40%.
1. The project has a life of 5 years.
Should Smallville go ahead with the project?
(Include in your answer the following: What are the annual incremental free cash flows associated with this project? What is the NPV? What is the IRR? What is the payback period?)
1. Wade Natural, a beverage company, is considering expanding into the snack business and you have collected the following information on the investment:
i. You estimate the beta of comparable companies in the snack business to be 0.92.
ii. The equity in Wade Natural has a book value of $ 500 million, but the market value of equity is $2 billion.
iii. The firm has $500 million (in market value terms) in interest-bearing debt with 10 year to maturity. The debt currently trades $900 per bond (Face Value = $1,000) and pays a 4% semi-annual coupon.
iv. The risk-free rate is 4% and the equity risk premium is 5%.
v. The marginal tax rate is 40%.
What is Wade Natural’s WACC?
Running head: ASSIGNMENT 2: PROJECT MOTORCYCLES
1
ASSIGNMENT 2: PROJECT MOTORCYCLES
9
Assignment 2: Project Motorcycles
M. Owens
Strayer University
Project Management BUS 375
Professor Puckett
October 31, 2013
Select one (1) of the types of project organization that would suit the development of the larger touring class motorcycles.
The project management organization I would use for this instance is pure project management organization. This helps to separate this project from the home company. It will be an independent segment. It will have its own technical staff and administration, which would be linked to the home company's administration. However, these links will not be strong, and it will enjoy some autonomy. This segment will be able to prepare its own reports on how the project is advancing, make minor purchases, and deliveries without consulting the home company. This will be in order to quicken the development of the motorcycles. The project manager is the head of this segment he will bear full responsibility for the project, although he will report to the senior staff at the home company. This decentralization will also lead to better communication in this segment as the project manager will be able to make some decisions without consulting senior staff in ...
IRJET- Project Economic Appraisal Techniques in Construction Industry - A Com...IRJET Journal
This document compares different project economic appraisal methodologies used in the construction industry. It discusses techniques like net present value, discounted payback period, and internal rate of return that are used to evaluate projects. The document also examines other factors considered in appraisals like technical, economic, organizational, managerial, commercial analyses as well as socio-economic and environmental impacts. It provides examples of how to calculate net present value and compares sample projects based on their net present values.
A technology roadmap outlines an organization's plan to develop and introduce new technologies over time. It identifies critical system requirements, major technology areas, and technology alternatives and their timelines. The roadmapping process involves three phases - preliminary activities, developing the roadmap, and follow-up activities. It helps organizations reach consensus on needs and technologies, forecast developments, and coordinate plans.
Project: definition, types and importance, phases of the project,
project identification, sources of idea generation, selection,
feasibility studies, formulation and project report, appraisal,
implementation, evaluation, and control.
Setting up a small business enterprise: identifying the business
opportunity- the importance of creativity, opportunities in various
sectors, stages for setting up of a small enterprise, Concept of
elevator pitch.
Business plan: meaning, Objectives, preparation.
This document discusses feasibility studies and their importance in project evaluation and business success. It provides definitions and descriptions of various types of feasibility studies, including their objectives and key components. Specifically, it outlines the five common factors assessed in feasibility studies: technical, economic, legal, operational, and schedule feasibility. It also discusses other important factors like market and real estate feasibility, resource feasibility, and cultural feasibility. Overall, the document emphasizes that feasibility studies are critical for determining if a proposed project or business idea is viable and should be pursued.
This document discusses project management concepts and the project life cycle. It is divided into 6 units:
1. Defines key project management terms like project, project life cycle, and the role of a project manager.
2. Covers project identification, formulation, and selection including identifying opportunities, screening, and preparing project reports.
3. Details project appraisal including market, technical, financial, socio-economic, and managerial appraisals.
4. Discusses project planning, scheduling, designing, cost estimation, and time tradeoffs.
5. Covers project execution, administration, contracting, organization, communication, and monitoring costs and schedules.
6. Explains project control
This document provides an overview of the nature and scope of economics according to several definitions:
- Economics is the science of scarcity, as human wants are unlimited but resources are limited. This leads to choice-making and economics studies choice. It also deals with the pricing process as scarce goods require a price.
- Adam Smith's definition viewed economics as the science of wealth, where wealth refers to goods that satisfy human wants. Modern economies are monetary so economics also examines the role of money.
- Other definitions note that economics studies human wants and their satisfaction, as well as production, exchange, distribution and consumption of wealth which promotes human welfare. Scarcity is the fundamental fact of life that economics addresses.
This chapter discusses the evolution of economic thought from ancient civilizations to modern times. It covers the economic ideas found in ancient Hebrew, Indian, Greek, and Roman writings. Some key points include:
1) The ancient Hebrews emphasized religion, ethics, and agriculture. They had rules against usury, monopolies, and unjust prices.
2) Ancient Indian economic thought is found in texts like the Arthashastra and Thirukkural. Professions formed the basis of the caste system initially. Agriculture was highly respected.
3) Greek thought and Roman law formed the basis of European culture. Economic ideas continued developing through the middle ages to modern times.
This document provides an overview of the concept of nationalism and its evolution over time. It discusses definitions of nationalism, forms that nationalism can take, and the importance of understanding nationalism. The introduction explains that to fully comprehend nationalism today, one must understand its origins, characteristics and changing nature over history as nationalism has evolved in complex ways. The chapter aims to explain what nationalism is, different types of nationalism, and the relevance of nationalism. It seeks to enable readers to define nationalism, describe its sources and types, and understand the need for nationalism.
The document discusses project termination and final reports. It describes various activities involved in terminating a project, such as collecting time sheets and expense reports, closing out contracts, and conducting surveys. It outlines four ways a project can be terminated: by extinction, addition, integration, or starvation. The document also details what should be included in a final project report, such as an abstract, introduction, background, design description, evaluation, and appendices. A final report aims to summarize all stages of the project so that someone else could recreate the project steps.
Project control involves monitoring a project's schedule, costs, and performance. There are three main types of control systems: cybernetic control monitors outputs against milestones; go/no-go control uses testing to ensure preconditions are met; and post-performance control applies lessons learned after a project. Variance analysis compares planned and actual costs/schedules to identify variances which may require corrective action. Effective control systems are accurate, timely, objective, focused on key points, economically realistic, flexible, and accepted by team members.
This document provides an overview of project control. It discusses the fundamental purposes of control, which include maximizing resources, achieving purposeful behavior, finding deviations from plans, and suggesting corrective actions. It also describes the three main types of control systems: cybernetic control, go/no-go control, and post-performance control. Additionally, it explains variance analysis as a method to monitor planned versus actual costs and analyze potential causes of variances.
The document discusses project scheduling and some key related concepts. It defines project scheduling as the process of converting a general project plan into a time-based graphic presentation given information on available resources and time constraints. It outlines the basic principles of project scheduling such as compartmentalizing tasks, determining interdependencies, allocating time, and defining responsibilities, outcomes and milestones. It also defines some basic terminology like tasks, activities, work products, and events. It then explains common scheduling techniques like network diagrams, bar charts, Gantt charts and milestones charts. Finally, it discusses objectives and applications of network analysis in project scheduling.
The key steps in the PERT planning process are:
1) Identifying the specific activities and milestones of the project.
2) Determining the proper sequence of activities by constructing a network diagram that shows the interdependencies.
3) Estimating the time required to complete each activity.
4) Identifying the critical path which is the longest sequence of activities that determines the minimum time to complete the project.
Project planning establishes the duration, resources, and sequence of tasks needed to successfully complete a project. It includes defining objectives, schedules, resources, personnel, risks, and evaluation methods. The key elements of project planning are an overview, objectives, general approach, contractual aspects, schedules, resources, personnel, risk management plans, and evaluation methods. System integration involves integrating existing systems to ensure subsystems function as a whole system. It aims to improve performance, effectiveness, and reduce costs. The objectives of system integration are performance, effectiveness, and cost.
This document discusses project planning and system integration. It defines project planning as creating documentation to ensure successful project completion, including establishing duration, resource needs, and task sequences. Key elements of project planning include defining objectives, approaches, schedules, resources, personnel, risks, and evaluation methods. System integration is defined as bringing together component subsystems into a functioning whole. The objectives of system integration are improved performance, effectiveness, and reduced costs. Breakdown structures break projects down into successively finer tasks to aid in planning, scheduling, monitoring, and control.
The document discusses different types of project organizations and their advantages and disadvantages. It describes matrix organization as the most common type where employees report to both a functional manager and project manager. This structure has advantages like resource coordination and allowing employees to develop diverse skills. However, it also has disadvantages like divided loyalties between functional and project managers and potential power imbalances. A pure project organization separates the project completely from the parent organization but lacks technology transfer between functions.
The document discusses different types of project organization structures and the human factors involved in project management. It describes matrix, self-directed, project-based, problem-solving, and functional organizational structures. A matrix structure involves employees reporting to both a functional manager and project manager, allowing for resource sharing but also potential conflicts. Successful project management requires addressing human relationship challenges like authority, orientation, motivation, and group functioning.
The document provides an overview of key concepts in project management:
1. It defines a project as a specific, finite activity that produces an observable and measurable result under certain preset requirements. Project management is the process of planning, organizing, and controlling resources to achieve specific goals within constraints such as time and cost.
2. There are four major objectives of a project: scope, performance, time, and cost. A project goes through different phases in its life cycle from initiation to planning, execution, monitoring and control, and closure.
3. The level of uncertainty is highest at the beginning of a project when stakeholder influence is also highest. Cost of changes decreases as the project progresses while risk and cost of
This document provides an introduction to project management concepts. It defines a project as a specific, finite activity that produces an observable and measurable result under certain preset requirements. Project management is defined as an approach to management of work within the constraints of time, cost, and performance requirements. The key objectives of a project are scope, performance, time and cost. Projects can be classified based on duration, investment amount, ownership, and risk. The project life cycle consists of initiation, planning, execution/monitoring/control, and closure phases. Effort levels are lowest at the start and end of a project and highest during the intermediate phases.
Public finance deals with the revenue and expenditures of governments and aims to maximize social welfare. It covers government budgeting, taxation, public spending, and public debt. Historically, governments focused on basic functions like security, but modern governments undertake additional projects and welfare activities. As government responsibilities increased, the need to mobilize more resources also grew. Fiscal policy uses taxation, spending, and monetary tools to influence macroeconomic variables like employment and inflation. There are various approaches to defining public finance, but in general it concerns the principles and practices of raising and allocating public funds to achieve economic and social goals.
Money has become essential in modern economies. Originally, barter was used for exchange but it had many limitations. Money overcomes the difficulties of barter by serving four main functions: as a medium of exchange, a measure of value, a store of value, and a standard for deferred payments. The Reserve Bank of Bangladesh manages the country's monetary system by controlling various components of the money supply such as currency in circulation (M1), deposits (M2), and total money supply (M3). Monetary policy uses instruments like adjusting bank rates, reserve ratios, and open market operations to influence the money supply and achieve goals like full employment and price stability.
- The classical economists like Adam Smith, Thomas Malthus, David Ricardo, and Jean-Baptist Say developed economic theories in the 18th-19th centuries that influenced subsequent generations, but their ideas of free markets solving unemployment were challenged by the Great Depression.
- J.M. Keynes revolutionized macroeconomic thinking with his analysis showing classical theory was wrong and that governments have a role in solving unemployment. Keynes' ideas underlie modern macroeconomic theories.
- Say's law, which the classical economists relied on, asserted that aggregate supply creates its own demand and that unemployment was impossible, but Keynes exposed weaknesses in this law and classical assumptions of full employment.
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2. ____________________________________________________________________________________________________
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ECONOMICS
PAPER NO. 16 : PROJECT APPRAISAL AND IMPACT ANALYSIS
MODULE NO. 5 : PROJECT FORMULATION
TABLE OF CONTENTS
1. Learning Outcomes
2. Introduction
3. Concept of Project Formulation
4. Need for Project Formulation
5. Significance of Project Formulation
6. Elements of Project Formulation
6.1. Feasibility Analysis
6.2. Techno-Economic Analysis
6.3. Project Design and Network Analysis
6.4. Input Analysis
6.5. Financial Analysis
6.6. Social Cost- Benefit Analysis
6.7. Project Appraisal
7. Project Formulation vs. Detailed Project Report
8. Environmental Impact Analysis (EIA)
8.1. History of EIA
8.2. Concept of EIA
8.3. Definition of EIA
8.4. Methods of EIA
9. Steps in appraisal process adopted by planning commission
10. Summary
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MODULE NO. 5 : PROJECT FORMULATION
1. Learning Outcomes
After studying this module, you shall be able to
Know the concept of Project Formulation
Learn the significance of Project Formulation
Identify the elements of Project Formulation
Evaluate the common errors in Project Formulation
Identify difference between Project Formulation and DPR
Understand Environmental Impact Analysis
2. Introduction
The entrepreneur faces number of problems while establishing new project. These problems may
be in relation to the formalities and procedures to be completed, technical requirements or even
financial constraints also. There is a need to set the boundaries or the limit of the work intended to
be performed under the proposed project. In fact, the project is required to be given the precise
meaning. It definitely prevents the confusion, conflict or duplication of various aspects related with
the project. The very first stage in life cycle of project is project formulation. This module discusses
the need, significance and elements of project formulation. Now-a-days the impact on environment
needs to be analysed compulsorily. The Environment Impact Analysis has also been included in
this module.
3. Concept of Project Formulation
Project formulation is a step by step investigation and development of the project where each step
is for further development of project idea. It is a control mechanism which provides for restricting
expenditure on project development. So, it enables to control the expenditure and if at any step there
are signs of anything going wrong or if weakness is observed in the project at any stage of
investigation, the project may even be called off.
Project formulation is the systematic development of a project idea for the eventual objective of
arriving at an investment decision. It has the built-in mechanism of ringing the danger bell at the
earliest possible stage of resource utilization.
4. Need for Project Formulation
In the process of establishment of a new project, number of problems is faced by the entrepreneur.
The resources are scarce and alternative uses are available for these. That is why step-by-step
investigation and development of project idea are required. Following are some of the problems
that make the entrepreneur to undergo a lot of harassment, frustration and disappointment. But a
project formulation exercise undertaken at right time in a right manner mitigates the rigorousness
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as well as magnitude of these problems. The following are some of these key issues due to which
the need for project formulation becomes inevitable.
1. Selection of Appropriate Technology:
The project necessarily requires technology to be adopted. The entrepreneur faces great
difficulty in the selection of appropriate technology for the project. The problem may be in
relation with development of new technology or selection of suitable and adequate technology
out of technologies available. In highly industrialized economies, modern technologies have
been developed. But these may not be suitable for small and medium projects or in case of
developing economies. There may be a case that good technology is available but resources are
not adequate enough. Another problem may be the requirement of skilled manpower. This
clearly indicates that the project needs to be thoroughly examined as regards these factors. It is
not possible without project formulation.
2. Influence of External Economies:
Any project cannot function in isolation and it requires the support of external economies. The
dependency of the project in question on other projects or industry may be with respect to:
a) Supply of raw material
b) Requirements of power and its supply
c) Supply of tools, spare parts
d) Ancillary enterprises for supply of technical, financial or managerial services
e) Complex network of communication and transport facilities
The direct costs are the basic costs of the project. But, in the case of developing countries the
above stated ancillary costs are also considered. In developed countries or advanced industrial
environment, this basic cost is not required as it is contributed in terms of external economies.
3. Non-availability of Technical Manpower:
The successful execution requires availability of appropriate and technically qualified
personnel. The project formulation duly analyses this aspect of project so that a technically
infeasible project may be abandoned at very initial stage.
4. Resource Mobilisation:
The resource mobilization refers to the ability to gather various resources to accomplish the
desired goals. The mobilization may be very easy and feasible at the very initial level of the
project. But it is required continuously throughout the project. The project formulation takes
into account this aspect also.
5. Legal Scenario:
The Government policies require being adhered compulsorily. The basic problem, faced in
most of the countries, is non-availability of consolidated and detailed information. In India
“Ministry of Industrial Development” has issued a compendium in the name of “Guidelines for
Industries”. This compendium covers the following aspects:
a) Industrial Policy
b) Licensing policy and procedures, if any
c) Guidelines for foreign collaboration
d) Import and export control orders
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e) Present status of capacities
f) Possibility of further development
5. Significance of Project Formulation
The huge projects require assistance from the financial Institutions. The funding becomes hassle-
free in case of well-formulated projects. The most viable way of selling a project idea to financing
agency requires allocation of resource constraints to various projects with due consideration of
relative importance and viability. It can be made possible in an effective manner through project
formulation. The project report, prepared after due project formulation, will be of great assistance.
6. Elements of Project Formulation
In order to take the most effective project decision, project formulation is required. This exercise
of project formulation usually contains the following elements:
1. Feasibility analysis
2. Techno-economic analysis
3. Project Design and Network analysis
4. Input analysis Financial analysis
5. Social Cost-benefit analysis
6. Project appraisal
6.1 Feasibility Analysis
Feasibility analysis is a process undertaken to determine whether the project idea is worth
proceeding with or not. It evaluates the future of the project idea within the limitations imposed by
the environment upon it and also the constraints of the implementing body. Generally, the outcome
of the study can give a positive result under which the decision to proceed with the project is taken
otherwise the project can be abandoned. Sometimes, the data is not sufficient to arrive at any
decision and in that case further information is collected till a decision can be reached. The
feasibility analysis consists of three stages. These are pre-feasibility study, feasibility study and
Project report. It has been discussed in detail in Module 6 (Feasibility Studies).
6.2 Techno-Economic Analysis
It is concerned with finding out the demand potential of the project and the right technology
required attaining the objective of the project. It is important to analyse whether the economy will
absorb the output. The technology would mean the project design, the methodology and the process
required. Thus it is to be understood in a broader sense. This analysis consists of two important
segments. The first segment is related with ascertainment of maximum project output whereas the
purpose of second segment is the selection of optimal strategy to achieve the output.
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MODULE NO. 5 : PROJECT FORMULATION
6.3 Project Design and Network Analysis
It is related with the flow of various individual activities and their inter-relationship in order to
complete the project. It identifies activities which can be started and also the activities which can
be taken up simultaneously. It is generally depicted in the form of a network diagram. .
6.4 Input Analysis
After all the analysis the next step is to find out all the resources that are required to complete the
project. These resources form the inputs of the project. It also identifies all the different phases
where the resources are required.
6.5 Financial Analysis
The estimates about the financial costs of the project and the revenue generated by it so as to
determine whether it will be profitable to undertake the project or not is termed as financial
analysis.
The following norms are adopted by Financial Institutions in the examination of financial
feasibility of project:
1. Cost estimates of the project are to be examined whether such costs are realistic and
escalation is taken into account.
2. Time and cost over-runs should be considered.
3. Sources of finance i.e. debt-equity ratio, financing of fixed assets, financing of working
capital, promoters contribution towards share capital, etc. debt equity ratio of 2:1 should
be maintained.
4. Financial viability i.e. profitability, sensitivity analysis, cash flow are to be examined
thoroughly.
5. IRR should be worked out.
6. Interest coverage ratio should be calculated.
7. The level at which the project is likely to break-even is also examined.
8. Loan repayment schedule is drawn up as per financial projections. Repayment should be
made out of internal resources.
9. In case of existing company, the impact of new project on the level of production, net
earnings, borrowings, costs, etc. is to be seen.
10. Unsecured loans from promoters are allowed only in restricted circumstances and with a
condition that they should not withdraw the amount without permission of the financial
institutions.
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PAPER NO. 16 : PROJECT APPRAISAL AND IMPACT ANALYSIS
MODULE NO. 5 : PROJECT FORMULATION
6.6 Social Cost-benefit analysis
The concept of social cost–benefit analysis (SCBA) has been introduced by the French
economist Jules Dupuit. Social Cost benefit Analysis is a systematic evaluation technique for
long-term decision making in capital projects appraisal. It is an analytical tool in decision making
which enables a systematic comparison to be made between the social costs and related social
benefits with due emphasis on technical and other feasibility studies but focusing more on social
impact. In the context of planned economies, the social costs benefit analysis aids in evaluating
individual projects within the planning framework.
In addition to technical, commercial and financial viability of the project, it should also be
socially desirable. The following are the indicators of social desirability of a project:
a) Employment potential
b) Value added per employee
c) Value added per rupee of capital
d) Capital output ratio
e) Cost benefit ratio
f) Social cost benefit analysis (SCBA)
g) Area development
h) Foreign exchange benefit to the country
It must be emphasized that, there can be no definite principle which can be universally applied to
convert commercial costs and benefits into social costs and benefits. However, the following two
principal approaches are suggested for SCBA:
It deals with the estimation of social costs and social benefits. This analysis is undertaken to
ascertain the impact of the project on the society as a whole. Greater emphasis is laid on social
objectives in this analysis with lesser profit motive. The projects aimed at the development of the
society will give secondary importance to the profitability of the project, keeping in view the social
objectives as primary.
6.6.1 UNIDO Approach
This approach focuses on consumption as the final goal of all investments and therefore the benefit
and costs relating to a project are determined in terms of impact on consumption.
6.6.2 Little-Mirrlees Approach
The Little-Mirrlees approach determines the benefits and costs of projects in terms of investment.
The social costs and benefits are measured in terms of international prices. Apart from above, some
financial institutions like IDBI, IFCI and ICICI are following simplified version of L-M approach:
economic rate of return, effective rate of protection and domestic resource test. All these
approaches have been discussed in detail in subsequent modules.
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PAPER NO. 16 : PROJECT APPRAISAL AND IMPACT ANALYSIS
MODULE NO. 5 : PROJECT FORMULATION
6.7 Project Appraisal
The term project appraisal refers to the process of assessing whether to proceed with the project or
nor in a systematic manner. It is related with calculating the feasibility and viability of the project.
While appraising a project economic, technical, marketing and financial feasibility is generally
checked. A feasibility report is then prepared based on which the decision is taken whether to
proceed with the project or not. The types of appraisal can be
Technical
Commercial
Financial
Economic
Management
7. Project Formulation vs. Detailed Project Report
The Project Formulation is totally different from Detailed Project Report. The difference lies in the
basic purpose and the timings of the preparation of the two documents. The following are the major
points of differences between the two:
1. Pre and Post investment Decision: Project formulation is an investing process and is
undertaken to find out and to present relevant facts before taking the decision. Project
formulation enables the decision maker to take decision to accept or reject the project. For
the same purposes, the PF examines the project idea from the stand point of its objectives,
social impacts and financial and technical viability.
The detailed project report, on the other hand, is post investment decision. It involves the
preparationof detailed specifications and design, engineering drawings, site investigation,
foundations design and process design as well as time schedules for project
implementation.
2. Purpose: Project formulation forms the basis on which the decision of investment is to be
taken. It is considered with PIR (Pre-investment report). On the other hand, Detailed
Project Report (DPR) is a detailed work plan for the implementation of the project.
3. Contents: The elements of Project formulation are feasibility analysis, techno-economic
analysis, project design and network analysis, input analysis, financial analysis, social cost
benefit analysis and project appraisal. Whereas the contents of DPR include general
information, promoter’s details, marketing and selling arrangements, technical
arrangements, environmental aspects, schedule of implementation, etc.
Thus, project formulation always precedes detailed project report.
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ECONOMICS
PAPER NO. 16 : PROJECT APPRAISAL AND IMPACT ANALYSIS
MODULE NO. 5 : PROJECT FORMULATION
8. Steps in Appraisal Process Adopted by Planning Commission
The Planning Commission (Now Niti Ayog) follows specific approach for project Appraisal. In
this regard, the Project Appraisal passes through following three stages:
1. Project formulation
2. Feasibility Study
3. Detailed project Report (DPR)
The investment proposals in the first two stages are handled by Public Investment Board in order
to arrive at a decision. The examination and clearance of Detailed Project Report are referred by
financial advisers in consultation with concerned administrative ministries. It may result into
revision in cost estimates. Due to this revision the difference arises as regards the amounts approved
at the stage of investment decision by PIB. It is important to note that if the revised cost estimates
exceeds by more than 20% of the amount approved, then the matter is again referred to the board.
STAGE 1:
a) First of all the priority and position of the investment proposal in the context of the five
year/ Annual plan is considered at preliminary and broad level.
b) The smooth functioning of this process requires close association of administrative ministry
with the planning commission because formulation stage should necessarily be considered
before the preparation of plans.
c) If foreign exchange implications of the project are serious, then the department of economic
affairs is also consulted.
d) Thereafter, a feasibility report is prepared considering the views of
Concerned agencies
Administrative Ministry
Public Investment Board
Plan Finance of planning Commission
Project Approval Wing of Planning commission.
e) The feasibility report is prepared if the board directs so.
STAGE 2:
a) This stage is concerned with feasibility study.
b) In first stage, feasibility report is prepared on direction of Public Investment Board. The
administrative ministry marks comments on the feasibility report prepared under stage 1.
The multiple copies of the report are made and these are sent to the concerned financial
adviser in the department concerned.
c) The financial adviser forwards these copies of feasibility report to the following
departments:
Plan Finance and project appraisal wing in Department of Expenditure
Bureau of Public Enterprises
Department of Economic Affairs
Planning Commission
Any other agency deemed necessary.
d) The comments, to be made by above agencies, consider various important issues like:
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PAPER NO. 16 : PROJECT APPRAISAL AND IMPACT ANALYSIS
MODULE NO. 5 : PROJECT FORMULATION
Advisability of plan funds, desirability of diversion of plan funds to new projects from
those already on hand.
The economic benefits of the project as distinct from financial returns.
The advisability of undertaking the project in the public sector or joint sector or
private sector.
Project's contribution to the social and economic objectives of the country.
The plant capacity and investment timing in the light of demand and supply balance
including export possibilities.
Crucial assumptions in the feasibility report which are likely to affect the performance
of the commissioned project in relation to the claims made thereon in the feasibility report.
STAGE 3:
a) The comments are received by Financial Adviser from all concerned departments as listed
above. A report is also prepared by Financial Adviser incorporating these comments.
b) This report is forwarded to the Plan Finance and project Approval Wing (PFAP) in
Department of expenditure.
c) The PFAP prepares a final report after due consideration of essential points and notes
obtained from different agencies.
d) This final report is to be examined by PIB as regards the Financial and economic
characteristics of the proposed investment.
e) The Final decision is taken by the board. The board may decide
To go ahead with the proposed investment or
To drop it or
To modify it.
9. Environmental Impact Analysis (Development in Project Formulation)
9.1 History of EIA
The growing environmental awareness in 1960 leads to evolvement of EIA. In order to have more
objective decision making, the EIA included technical evaluation. If we consider the case of the
United States, then the formal status was given to EIA in 1969 and a new Act was enacted as
National Environmental Policy Act.
9.1 Concept of EIA
In respect of any project, policy, plan or program, then impact on the environment may be positive
or negative. The decision to continue or to go further with the proposed action depends upon it.
Environmental impact assessment (EIA) is the formal systematic procedure which is used in order
to trace the consequences of project or plan on the environment. This assessment may be done for
present or proposed action.
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PAPER NO. 16 : PROJECT APPRAISAL AND IMPACT ANALYSIS
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9.2 Definition of EIA
The International Association for Impact Assessment (IAIA) defines an environmental impact
assessment as "the process of identifying, predicting, evaluating and mitigating the biophysical,
social, and other relevant effects of development proposals prior to major decisions being taken
and commitments made." The basic purpose of EIA is to ensure that the project is environmental
friendly and it will not impact the environment adversely.
9.3 Methods of EIA
The methods of EIA may be general or industry specific. Some of these are following:
a) EIA for Industrial products - The impact of industrial products on the environment should
be identified and measured. For this PLCA i.e. Product environmental life cycle analysis
method is generally used. This method considers the activities related with:
The extraction of raw materials
Ancillary materials
The equipment
The production, use, disposal and ancillary equipment.
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BUSINESS
ECONOMICS
PAPER NO. 16 : PROJECT APPRAISAL AND IMPACT ANALYSIS
MODULE NO. 5 : PROJECT FORMULATION
b) EIA for Genetically Modified Plants - The specific methods available for these plants are
GMP-RAM and INOVA.
c) EIA where impacts cannot be quantified - In order to apply EIA, there is a need to measure
data and estimate values of impact indicators. But in some cases, like landscape quality,
lifestyle quality, social acceptance, etc., the quantification is not possible. And also, the
information from similar EIA cannot be received. In such cases, approximate reasoning
methods (i.e. fuzzy logic), expert judgment, community sentiment, etc. are usually employed.
An alternative arithmetic approach and software like TDEIA are also available.
10. Summary
The very first stage in life cycle of project is project formulation
Project formulation is a step by step investigation and development of the project where
each step is for further development of project idea.
A project formulation exercise undertaken at right time in a right manner mitigates the
rigorousness as well as magnitude of these problems.
The huge projects require assistance from the financial Institutions. The funding becomes
hassle-free in case of well-formulated projects
In order to take the most effective project decision, project formulation is required. This
exercise of project formulation usually contains elements like : Feasibility analysis ,
Techno-economic analysis , Project Design and Network analysis, Input analysis Financial
analysis , Social Cost-benefit analysis and Project appraisal
Environmental impact assessment (EIA) is the formal systematic procedure which is used
in order to trace the consequences of project or plan on the environment. This assessment
may be done for present or proposed action.