THIS PRESENTATION CONTAINS BROAD COVERAGE OF PROJECT IDENTIFICATION, CLASSIFICATION AND IMPLEMENTATION.

1. DR. RICHA SINGHAL
ASSOCIATE PROFESSOR
DEPT. OF EAFM
S.S.JAIN SUBODH P.G COLLEGE

2. WHAT IS PROJECT ?
A Project is a temporary, unique and progressive attempt or endeavour
made o produce some kind of tangible or intangible result (unique
product, service, benefit, competitive advantage, etc.). It usually
includes a series of interrelated tasks that are planned for execution
over a fixed period of time and within certain requirements and
limitations such as cost, quality, performance, others.
A Project is a combination of interrelated activities or individual tasks
with well defined objectives to be completed in a specific time period.
Project is something special which is different from routine and regular
activities.

3. FEATURES OF PROJECT
PREDETERMINED OBJECTIVES
DEFINITE LIFE SPAN
SINGLE ENTITY
RESOURCES
ADVANCE PLANNING
LIFE CYCLE
TEAM WORK
PERFORMANCE MEASUREMENT
COMBINATION OF ACTIVITIES

4. CLASSIFICATION OF PROJECT
New project
Expansion Project
Modernisation Project
Replacement Project
Diversification Project
Rehabilitation Project
Plant Relocation Project
Infrastructure Projects
Welfare Projects
Educational Projects

5. PROJECT IDENTIFICATION
A process to assess each project idea and select the project
with the highest priority.
Concerned with collection, compilation and analysis of
economic data for the eventual purpose of locating possible
opportunities for investment.

6. BUSINESS OPPORTUNITIES
ADDITIVE OPPORTUNITIES
COMPLEMENTARY OPPORTUNITIES
BREAK-THROUGH OPPORTUNITIES

7. BASES OF PROJECT IDENTIFICATION
OBJECT
AVAILABILITY OF RESOURCES
TECHNICAL FACTORS
CREDITWORTHINESS AND GOODWILL
COMPETITION
GOVERNMENT POLICIES
SUCCESFULL ENTERPRENEUR
TRUST IN PROJECT

8. STEPS IN PROJECT IDENTIFICATION
SELECTING THE BEST PROJECT IDEA
PRELIMINARY SCREENING
CORPORATE APPRAISAL
MONITORING OF ENVIRONMENT
SWOT ANALYSIS
GENERATION OR SCROUTING OF IDEAS

9. GENERATION OR SCROUTING OF IDEAS
OBSERVATION
ANALYSIS OF PERFORMANCE OF EXISTING INDUSTRIES
EXAMINATION OF INPUTS AND OUTPUTS OF VARIOUS INDUSTRIES
ANALYSIS OF INPUTS AND EXPORTS
EXPLORING THE POSSIBILITY OF REVIVING SICK-UNITS
TRADE AND PROFESSIONAL JOURNALS
BULLETINS OF RESEARCH INSTITUTES
THE PLAN DOCUMENT
TRADE FAIRS AND EXHIBITIONS
SUGGESTIONS OF FINANCIAL INSTITUTIONS AND DEVELOPMENT AGENCIES
INVESTIGATION OF LOCAL MATERIAL AND RESOURCES
ANALYSIS OF ECONOMIC AND SOCIAL TRENDS

10. STRENGTHS – resources and capabilities (strong
brand name, good reputation, favourable networks,
high grade natural resources, strong financial position
etc.
WEAKNESSES- lack of patent protection, weal brand
name, poor reputation, high cost structure, lack of best
natural resources etc
OPPORTUNITIES- unfulfilled customer need, arrival
of new technologies, loosening of regulations, removal
of international trade barriers.
THREATS- substitute products, new regulations,
increased trade barriers, high competition, shifts in
consumer tastes, high rate of inflation etc.

11. MONITORING OF ENVIRONMENT
 ECONOMIC SECTOR- state of economy, growth rate, cyclical fluctuations, rate of
inflation, balance of payment.
GOVERNMENT SECTOR- industrial policy, govt. programs and projects, tax designs,
import and export policy.
TECHNOLOGICAL SECTOR- present and emerging new technologies, foreign as
well as domestic.
SOCIO- DEMOGRAPHIC SECTOR- population trend, age of population, income
distribution, educational profile, employment, consumption, investments etc.
COMPETITION SECTOR- number of firms in market, their products, comparison in
terms of quality, price, performance, marketing policies and practices.

12. CORPORATE APPRAISAL
Marketing and distribution area
Production and operations area
Research and development area
Corporate resources and personnel area
Finance and accounting area

13. PRELIMINARY SCREENING
Compatibility with the Entrepreneur
Compatible with Government Regulations and Priorities
Availability of Inputs
Adequacy of Market
Project Cost Justification
Risk involved in the project

14. SELECTING THE BEST PROJECT IDEA
Identification of factors relevant for project rating
Assigning of weights to these factors
Rating the project proposal
Multiply each factor with the weightage to get factor score
Adding all the factor scores to get overall project rating index.

15. PROJECT FORMULATION

16. DEFINITION:
Project formulation is the systematic development of
a project idea for arriving at an investment decision. It
has the built-in mechanism of ringing the danger bell at
the earliest possible stage of resource utilization. Project
formulation is a process involving the joint efforts of a
team of experts.
It involves systematic examination of technical,
economic, managerial, financial, commercial,
organisational and legal aspects of a project.
Project formulation is a step-by-step investigation of
resources and development of project idea for achieving
the objective of taking an investment decision

17. STAGES/ ASPECTS OF PROJECT FORMULATION
Feasibility Analysis
Pre-feasibility analysis
Preparation of detailed project report
Market and Demand Analysis
Techno Economic Analysis
Project design and network analysis
Input Analysis
Financial Analysis
Socio-cost benefit Analysis
Pre-investment Analysis
Managerial analysis
Environment appraisal

18. PRELIMINARY OR PRE-FEASIBILITY ANALYSIS
Preliminary analysis is essential to examine the project idea in the light of the available
internal and external constraints. Internal constraints arise due to the limitations of project
sponsoring and implementing body. External constraints are due to the characteristics of the
environment.
The pre-feasibility study can be reviewed as a series of steps resulting in a document called
‘Project Feasibility Report (PFR) or Preliminary Project Report (PPR).
PFR- an overview of the Project’s proposal , to provide a basic guideline on technical,
economic and commercial parameters of a project.

19. FEASIBILITY STUDY OR PREPARATION OF DETAILED PROJECT REPORT:
The technical, economic and commercial justification has to be provided in
comprehensive and authentic terms before the final decision is taken to commit resources. At
this stage, the project is presented in such a way that the project sponsoring body, the project
implementing body and the external consulting agencies are able to decide whether to accept
the proposal or not.
DPR- It is a precious formal document of commitment prepared and presented by
sponsors of a project. The preparation of DPR is undertaken only after the investment
decision is made on the basis of technical, commercial, economic and financial feasibility
studies so that the expensive efforts involved in the preparation of DPR are not wasted.

20. Market and Demand Analysis- Market Structure; Price Competition;
Quality maintenance; Communication facilities; Transportation facilities;
Present and future demand, sale and distribution, consumers
background, government policy
Techno Economic Analysis- location; present and emerging new
technology; layout; process of production; product mix; plant capacity; Tax
factor; market revenue; risk and uncertainty state of economy; growth
rate; cyclical fluctuations; rate of inflation; balance of payment.
Project design and network analysis-Defines individual activities
comprising a project; Identifies the flow of events; product scheduling;
PERT; CPM.

21. Input Analysis- Concerned with identification and evaluation of project
inputs; Raw material; indirect material; finished and semi finished
material, electricity; nature and scope of available resources; continuous
and adequate supply of inputs.
Financial Analysis- A detailed coverage of financial aspects such as
cost estimation, profit analysis, production cost; profitability; sources of
funds; optimum utilization of funds; Financial statements; Financial
forecasting; Cash flows; Cost- benefit Analysis; Rate of returns.
Socio-cost benefit Analysis- Developed for evaluating investment
projects from the point of view of society as a whole; Maximum benefit at
minimum cost.

22. Pre-investment Analysis- At this stage the project is presented in such a way that the
project promoters, project implementation and project advisory agencies are able to
decide whether the project should be accepted or not. The whole essence of an
appropriation analysis is to present the project idea in such a format that the project
originator and the implementing body can make an appropriation decision regarding the
project. This phrase may be called as Detailed Project Report.
Managerial analysis -Talent of promoter is taken into consideration; Also includes
assessment of technical and managerial personnel working, their training etc.
Environment appraisal-Refers to environment planning, protection, monitoring,
research, education, conservation of resources etc.

23. THANKS