Project

Management
By Ms. Sarah Kazmi
MBA,Delhi School Of Economics

Topics to be covered
1.1 Introduction
1.2 Concept of project and project management
1.3 Characteristics of project
1.4 Project Family tree
1.5 Classification of Project
1.7 Project life cycle
1.8 Project report
1.9 Project appraisal
1.10 Tools and techniques for project management

Introduction
Economic development
Planning
Non routine
Taj and pyramid

A Project
A unique process, consisting of a set of

coordinated and controlled activities with

start and finish dates, undertaken to
achieve an objective conforming to specific
requirements including constraints of time,
cost and resources.
(Lockyer and Gordon, 1996)

A Project
Unique process
Coordinated and controlled activities
Start and finish dates
To achieve an objective
Specific requirements
Constraints of time, cost and resources

CHARACTERISTICS OF
PROJECT
Objectives
Life cycle
Uniqueness
Team Work
Complexity
Risk and uncertainty
Customer specific nature
Change
Optimality

PROJECT FAMILY TREE

CLASSIFICATION OF
PROJECTS
Business Projects:
Developmental Projects:
Technical Projects:
Small, medium and large budget

Projects;
National and International Projects;
Short term and long term projects

Product Life Cycle

The principal
stages in the life of a project are :

Identification
Initial formulation
Evaluation (selection or rejection)
Final formulation (or selection)
Implementation
Completion and operation

Identification
Surveys
Indepth Studies
Socio-economic environment studies
Past and Future trends

Initial Formulation
Crystalise Objectives
Decision making criteria
Broad lay out for evaluation
Detailed Planning

Evaluation or Project
Appraisal
feasibility studies :
Commercial viability
Economic feasibility
Financial feasibility
Technical feasibility
Management

Formulation
General information
Project description
Market potential
Capital costs and sources of finance
Assessment of working capital requirement
Other financial aspect
Economic and social variables.

Project
Implementation
Project Completion

PROJECT REPORT
Contents of Project Report
General Information
Promoter
Location
Land and Building
Plant and Machinery
Production process
Utilities
Transport and communication
Raw material
Manpower
Product
Market

PROJECT APPRAISAL
Method of Project Appraisal
Economic analysis
2 Financial analysis
3 Market analysis
4 Technical analysis
5 Managerial competence
6 Ecological analysis

Economic Analysis
Requirements for raw material
Level of capacity utilization
Anticipated sales
Anticipated expenses
Proposed profits
Estimated demand

Financial Analysis
Cost of capital
Means of finance
Estimates of sales and production
Cost of production
Working capital requirement and its

financing
Estimates of working results
Break-even point
Projected cash flow
Projected balance sheet.

Market Analysis
Opinion polling method
Life Cycle Segmentation Analysis
Introduction,
Growth,
Maturity,
Saturation and
Decline.

Technical Analysis
Availability of Land and site
Availability of Water Power, transport,

communication facilities.
Availability of servicing facilities like machine
shop, electric repair shop etc.
Coping with anti pollution law
Availability of work force
Availability of required raw material as per
quantity and quality.

Management Competence
Ecological Analysis
Environmental damage
Restoration measure

Techniques and tools

Project selection techniques
(a) Cost benefit analysis and
(b) Risk and sensitivity analysis
2. Project execution planning techniques
(a) Work breakdown structure (WBS)
(b) project execution plan (PEP)
(c) Project responsibility matrix and
(d) Project management manual