Project Management Module II

What is Project Management?

Project management is a set of principles and tools for
Defining Planning Executing Controlling . . . and Completing a PROJECT

Project Management Criteria

Projects are oriented towards a goal. There is something unique about every project. Projects have a finite duration. Projects require coordination of interrelated activities.

Scoping the project

A short, crisply phrased piece of information covering -- what is to be done -- why it is to be done -- value it provides if it is done

Innovation idea
Analyze market, customers and environment; Analyze your existing business

Sources for innovative idea

Evaluation level

Implementation

Results

Check your idea; Check yourself

New-Product Development Process

Preliminary screening
Compatibility with the promoter Consistency with governmental priorities Availability of inputs Adequacy of market Reasonableness of cost Acceptability of risk level

Feasibility Analysis
INTERNAL ENVIRNMENT
IDEACOLLECTION
New product development

EXTERNAL ENVERONMENT

Feasibility Study
MARKET APPRAISAL 1. Demand 2. Supply 3. Competition 4. Cost 5. Import & Export 6. Consumer Behavior

TECHNICAL APPRAISAL 1. INPUTS 2. PRODUCTION TECHNOLOGY 3. PRODUCTMIY 4. EQNIPMENT CHOICE 5. LOCATION & SITE 6. LAYOUT 7. WORK SHEDULE

FINANCIAL APPRAISAL 1. Investment 2. Financial 3. Cost 4. Profitability 5. Breakeven 6. Cash flow 7. Investment Worthiness

Economic Appraisal 1. Cost & Benefit 2. Impact on Society 3. Self sufficiency 4. Employment

7. Distribution Channels

Project planning
Probably the most time-consuming project management activity. Continuous activity from initial concept through to system delivery. Plans must be regularly revised as new information becomes available. Various different types of plan may be developed to support the main project plan that is concerned with schedule and budget.

Project planning process

Establish the project constraints Make initial assessments of the project parameters Define project milestones and deliverables while project has not been completed or cancelled loop Draw up project schedule Initiate activities according to schedule Wait ( for a while ) Review project progress Revise estimates of project parameters Update the project schedule Re-negotiate project constraints and deliverables if ( problems arise ) then Initiate technical review and possible revision

Project scheduling
Split project into tasks and estimate time and resources required to complete each task. Organize tasks efficiently to make optimal use of workforce. Minimize task dependencies to avoid delays caused by one task waiting for another to complete. Dependent on project managers intuition and experience.

Project implementation stages

Project integration Project Management Project Deadlines Management Project Costs Quality Control Human Resources Management Communication Project risks management Supply management

Monitoring and Evaluation

The Five Evaluation Criteria 1. Efficiency 2. Effectiveness 3. Impact 4. Relevance 5. Sustainability

 Efficiency
The productivity in project implementation. The degree to which Inputs have been converted into Outputs.

Effectiveness
The degree to which the Project Purpose has been achieved by the project Outputs.

Impact
Positive and negative changes produced, directly or indirectly, as a result of the Implementation of the project.

Relevance
The validity of the Overall Goal and Project Purpose at the evaluation stage.

Sustainability
The durability of the benefits an and development effects produced by the project after its completion.

Innovations and entrepreneurship

Innovation and entrepreneurship are considerer in Union as increasing economics vector, competitiveness and rural development. The successful entrepreneurial is usually based on a significant innovation. Innovation activities are one of the important reactions to the challenges.

Innovation
Process - bringing an invention to market and users Innovation is planned - does not happen by chance Requires team work and cooperation inventors and researchers process, product and design engineers lawyers and marketing specialists financial and production managers sales, advertising and distribution specialists entrepreneurs

Innovation
Entrepreneur - play-maker
bring together all those who make innovation a success

Success function of
competitive advantages offered by innovation social and economic environment open to change and progress general attitude towards risk, failure, science and technology, invention and innovation

Features of Innovation
Novelty: Innovation is something new
Function Technic Design (?)

Implementation: Innovation is introduced into market Modification: A innovation should cause a change/improvement

Types of innovation

Incremental Innovation
Incremental innovation refers to simple changes or adjustments in existing products, services, or processes

Continuous improvement, is the process of trying to find ways to improve and enhance a companys products and processes from design through assembly, sales, and service

Breakthrough Innovation
A breakthrough innovation is an innovation in a product, process, technology, or the cost associated with it that represents a quantum leap forward in one or more of those ways Breakthrough approaches to innovation are inherently more risky than incremental innovation approaches

Corporate Entrepreneurship
Entrepreneurs
Individuals acting independently or as part of an organization who create a new venture or develop an innovation and take risks entering innovations into the marketplace Can be any manager or employee in an organization

Corporate entrepreneurship
Process whereby an individual or a group in an existing organization creates a new venture or develops an innovation

What is a Business Plan

Roadmap to success Written document describing all relevant internal and external elements and strategies for starting a new venture Where I am Where am I going How to get there? Guide and structure to manage in the dynamic world.

For preparing a Business Plan we must answer a following questions:

1. WHAT is a Business Plan? 2. WHO needs a Business Plan? 3. HOW to prepare a Business Plan?

Contents of a business plan

1 Title page 2 Executive summary Vision and Mission statement Fact sheet 3 Company Plan Company description Operating plan Organizational plan

Contents of a business plan

4 Marketing Plan Market description& Target Market Competition analysis Advertising, Pricing Industry trends 5 Financial Plan Summary of financial needs Sources and uses of fund Cash flow statement

Contents of a business plan

Three year income projection Break even analysis Balance sheet Income statement Risk assessment & business Financial history 6 Supporting documents Personal resumes Personal financial statements Credit reports Letter of reference