A project is a set of organized, non-routine activities with defined objectives, resources, and timelines. Project formulation involves preparing a detailed plan that includes feasibility and techno-economic analyses, as well as evaluations of inputs, costs, and market potential. Key factors impacting project formulation are technology selection, skilled workforce, and compliance with government regulations.

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

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

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

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

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

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

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

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

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

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

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

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

14.  Any queries are welcome…