Project management Generation and screening of

ideas

Project Management

Generation & Screening of

Project Ideas
Project management Generation and screening of
ideas

Generation Of Idea
Barring truly new ideas
Stimulation the flow of ideas
most people adopt somewhat casual and
haphazard approach to the generation of
project ideas. To stimulate the flow of ideas,
the following are helpful: SWOT Analysis
Clear Articulation of Objectives
Forecasting a conductive climate
Project management Generation and screening of
ideas

Monitoring the Environment

Economic Sector
Governmental
State of the economy Sector
Overall rate of growth Industrial policy
Growth rate of primary, Government programmes
and projects
secondary and tertiary
Tax framework
sector
Subsidies, incentives, and
Cyclical fluctuations
concessions
Linkage with the world Import and export policies
economy Financing norms
Trade surplus / deficits Lending conditions of
Balance of payment financial Institutions and
situations commercial banks
Project management Generation and screening of
ideas

Monitoring the Environment

contd.
Technological Sector
Emergence of new technologies
Access to technical know-how, foreign as well as indigenous
Receptiveness on the part of industry

Socio-demographic Sector
Population trends
Age shifts in population
Income distribution
Educational profile
Employment of women
Attitudes toward consumption and investment
Project management Generation and screening of
ideas

Monitoring the Environment

contd.
Competition Sector
Number of firms in the industry and the market share of the top few (four or five)
Degree of homogeneity and differentiation among products
Entry Barriers
Comparison with substitutes in terms of quality, price, and functional
performance
Marketing policies and practices
Supplier Sector
Availability and cost of raw materials and sub - assemblies
Availability and cost of energy
Availability and cost of money
Project management Generation and screening of
ideas

Corporate Appraisal
Marketing and Distribution
Production and Operations
Research and Development
Corporate Resources and Personnel
Finance and Accounting
Project management Generation and screening of
ideas

Corporate Appraisal
contd.
Marketing and Distribution
Market Image
Product line
Market size
Distribution Network
Customer Loyalty
Marketing and Distribution costs
Production and operations
Condition and capacity of plant and machinery
Availability of raw materials, sub-assemblies, and power
Degree of vertical integration
Location advantage
Cost structure
Project management Generation and screening of
ideas
Corporate Appraisal
contd.
Research and Development
Research capabilities of the firm

Track record of new product developments

Laboratories and testing facilities

Coordination between research and operations

Corporate Resources and Personnel

Corporate image

Clout with governmental and regulatory agencies

Dynamism of top management

Competence and commitment of employees

State of industrial relations

Project management Generation and screening of
ideas

Corporate Appraisal
contd.
Finance and Accounting
Financial leverage and borrowing capacity

Cost of capital

Tax situation

Relations with shareholders and creditors

Accounting and control system

Cash flows and liquidity

Project management Generation and screening of
ideas

Profit
Potential
potential of Entrants
industries :
Threat of
PORTER New
MODEL Entrants
Bargainin Bargaining
g Power Power
of THE INDUSTRY Buyers
Suppliers Suppliers Rivalry Among Existing Buyers
Firms

Threat Of
Substitute
Product

Substitutes

Forces Driving Industry Competition

Project management Generation and screening of
ideas

Preliminary Screening
It is possible to develop a long list of project ideas,
a preliminary screening is required to eliminate
ideas which prima facie are not promising. The
following aspects can be looked into:
Compatibility with the promoter
Consistency with governmental priorities
Availability of inputs
Adequacy of market
Reasonableness of cost
Aacceptability of risk level
Project management Generation and screening of
ideas

Feasibility study report contains:

A broad indication of demand and availability of the
product.
Required sources for the development of the project.
Selection of suitable process and technology.
Fixation of capacity on the basis of the project.
Process description and layout plans for the project.
Available facilities.
Evaluation of available facilities.
Capital cost.
Profitability analysis.
Project schedule and schedule control.
Design and flow diagrams.
After the preparation of feasibility study report has been
prepared, it should be submitted to the experts the concerned
departments of operation such as finance, commercial, project
etc examine this. In case of any differences, the feasibility
study report is discussed with the experts, consultants and is
modified according to it.
 Prefeasibility Study
Project management
Pre
Generation and screening of
ideas
lim Generation of Ideas
ina
ry
Initial Screening

Is the Idea Prima Facie Promising ?

Yes No
Terminate
Plan Feasibility Study

Wo
rk
An
aly
Conduct Market Conduct Technical
sis analysis Analysis

Ev
alu Conduct Financial Analysis
ati
on
Conduct Economic and Ecological analysis

Is the project is worth while ?

Yes
No
Prepare funding proposal Terminate
Project management Generation and screening of
ideas

DPR Detail Project report

Preparation of detailed project report is further step in
firming up the proposal. When an investment proposal
has been approved on the basis functional report and
the proposal is a major proposal, it would be
necessary to detailed project report to firm up the
proposal for the capital cost as well as the various
facilities. It includes...

Examination of technological parameters.

Description of the technology to be used.
Broad technical specification.
Evaluation of the existing resources.
Schedule plan.
General layout.
Volume of work.
Project management Generation and screening of
ideas

DPR Detail Project report contd

Hence these reports are to be made before investment is made into

project. Thus formulation of investment is based on the studies is
made. These can be considered as pre-investment decision.
Detailed project report is prepared only for the investment decision-
making approval, but also execution of the project and also
preparation of the plan. Detailed project report additionally includes
that is contents in addition to Feasibility study reports are.

Project description.
Planning and implementation of the project.
Specifications.
Layouts and flow diagrams.
Project management Generation and screening of
ideas

SCBA - Social Cost Benefit

Analysis
Social Cost Benefit Analysis

UNIDO approach to SCBA

Little & Minlees Approach to

SCBA.