PROJECT PLANNING & ANALYSIS

INTRODUCTION
"Men often oppose a thing merely because they have had no agency in planning it...
-Alexander Hamilton A project , also known as capital expenditure decision or

capital budgeting decision . Project is non-routine nature of activities,i.e each project is unique in the sence of activities of o project are unique & non-routine. A project is accomplished by performing set of activities A project must be completed using available resources in a given time limit.

Characteristics of a project
Long-term effects. Substantial commitments. Irreversible decisions. Affect the capacity and strength to compete. Future uncertainity. Time element.

CATEGORIES OF PROJECT
There are many types of projects usually main 3 are put in to action.

Normal Projects: ( here time is

been allotted & requires minimum capital & no sacrifice in quality)

Crash Projects:( time is been saved

by paying extra money, overlapping & compromise in quality is been encouraged)

Disaster Projects:( anything

needed to gain time is allowed ,quality short of failure is accepted)

PHASES OF PROJECT LIFE CYCLE

Generation & screening of ideas

Monitoring the environment Corporate appraisal Scouting for project ideas Preliminary screening

Project rating index

Sources of positive NPV

On being an entrepreneur

PROJECT LIFE CYCLE

1.GENERATION & SCREENING OF IDEAS involves combining existing field of technology stimulating the flow of ideas - by SWOT analysis -clear view about the objectives (cost reduction, productivity improvement) -fostering a conducive climate
(to tap the creativity of people)

2.MONITORING THE ENVIRONMENT

Enables the firm to exploit opportunities in the environment. so the firm has to systematically monitor & assess its competitive advantage it includes:
-economic sector - govt sector - technology sector - competition sector -supplier sector

3.CORPORATE APPRAISAL
Strength & weakness is essential for identifying invst opportunity

Marketing & distribution Production & operation Research & development Financing & accounting

4. SCOUTING FOR PROJECT IDEAS

Variety of sources should be identified for a successful project. Analyze the performance of existing industry Examine the inputs & outputs Review exports & imports Study new technology development

5.PRELIMINARY SCREENING
Screening is done in order to eliminate the ideas which are not promising. compatibility with the promoters availability of inputs adequacy of market reasonable cost

6.PROJECT RATING INDEX

Here firm evaluates the large number of projects. -identify the factors -assign weights -rate the project on various factors -multiply factor rating with factor weight to get factor score - add all factor scores

7.SOURCE OF POSITIVE NPV

Imperfection in market leads to entry of barriers which causes positive NPV. Six main entry barriers are -economies of scale -product differentiation -cost advantage -market research -technological edge -government policy

8.ON BEING AN ENTREPRENUER

- Has following qualities & traits
Willingness to make sacrifice Leadership Decisiveness Confidence in Project Marketing orientation Strong ego

Market and Demand Analysis

- An investigation into the market pattern of the product/service being considered for productions the starting point. - An estimation should be made as to : What is the total size of the market What is the existing level of capacity installed by competitors What is the growth pattern of the demand What is the expected market share to be captured by the project under study.

Key Steps in the Market and Demand Analysis

Collection of information. Details about the market structure. Demand forecasting. Planning for market penetration.

Technical analysis
The technical analysis is concerned with the details regarding inputs; plant charts and layout, etc. The technical analysis consists of:
Analysis of materials, inputs and other utilities. Identification of technologies and their choice. Plant capacity. Location and site Acquisition of equipments Civil and structural works Engineering charts and layouts.

Financial Analysis
- Financial analysis is concerned with assessing the financial feasibility of the project. - It requires collection, summarizing, analyzing, presenting and interpreting the financial information of the project. - Different aspects which are covered by the financial feasibility analysis are: Cost of the project Estimates of revenue and costs Projected earnings

 Projected cash flow statement Break even analysis Projected balance sheet

THANK YOU.!!!!