This document discusses the key phases and aspects of project preparation and management. It outlines the main characteristics of projects, how they can be classified, and the important criteria for project selection and identification. The key phases of project management discussed are identification, formulation, appraisal, selection, implementation and management. Project formulation involves conducting feasibility analyses, designing the project, financial analysis, and developing a project report. Network techniques like PERT and CPM are also discussed.

1. Module-4
Preparation of project

2. • Meaning of the project: there are various
definitions
• Characterstics of project:
There are four characterstics
-Investment
-Benefits or gains
-Time limits
-Location

3. Project classification:
• It can be classified into different ways
-Power generation
-Health &education
-Spectral project
i. agricultural & allied sector
ii. Irrigation & power sector
iii. Industry and monitoring sector
iv. Transport & communication sector
v. Social service sector
vi. Miscellious

4. • Techno-economic projects
-Factory intensity oriented
-Causation oriented
-Magnitude oriented
• Financial institution
-expansion projects
-modernisation
-diversification

5. • Service project
-welfare projects
-service projects
-research & development
-educational
• Project featyres
-Simplicity & clarity
-Attractive technology to promote the project

6. -Integration of basic product services specially
those of input supply, create , marketing and
extention
-Compatibility of the project within the existing
administrative mix.
• Phases of project management
-Identification
-Formulation

7. -Appraisl
-Selection
-Implementation
-Management
• Identification:
Project identification is concern with
collection, completion & analysis of economic
data for the actual purpose of locating
possible opportunities for investment & with
development of such opportunities.

8. • There are three kinds of opportunities:
1.Additive opportunities: which enable the
decision maker to better utilize the exsisting
resources without any way involving a change
in the character of business.
2.Complimintary opportunities: involves the
introduction of new ideas & as such to lead to
certain amount of change in existing structure.
3.Brakethrough opportunities: involves
fundamental changes invoke the structure &
character of business

9. •Criteria for selecting a particular project
-investment size
-location
-Technology
-Equipment
-Marketing
• Importance of project identification: the
following are the reasons:
-it acts as the catalytic agent for project
- initiates the process of development

10. -provides the frame work of future pattern of
activities & services of the enterprises
-initiates development of basic infrastructure 7
environment
-brings the necessary changes in the society in
course of time
-accelerates the process sociocultural
development

11. • Formulation: It is defined as taking first look
carefully critically at the project idea by an
enterprises to build up an all round beneficial
project after carefully arranging its various
components.
• Sequential stages of project formulation
-Feasibility analysis
-Techno economic
-Project design
-network analysis
-input analysis

12. -finiancial analysis
-cost & benefit analysis
-preinvestment analysis
• Planning commission guideliness for project
formulation:
-General information
-preliminary analysis of altrenatives
-project discription
-marketing plans
-capital requirement & cost
-operating requirement & cost
-financial analysis
-Economic analysis

13. • Need for network techniques
-PERT
-CPM
• Steps in PERT
-Advantages & limitations
-CPM advantages & limitations
-difference between PERT & CPM
• Project reprt
-Scope
i.Economic aspects
ii.Technical

14. iii.Financial
iv.Production
v.Managerial
• Contents of project report:
-objective & scope of report
-Market position & trends
-raw material
-manifracture
-plant&machinary
-land & building
-financial implication
-marketing channel
-personnel