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Project Management: Definition

Project management involves planning, organizing, and managing resources to bring about the successful completion of specific project goals and objectives. It can be divided into six phases: identification, formulation, appraisal, selection, implementation, and management. The identification phase involves selecting a project idea. Formulation translates the idea into a concrete project plan. Appraisal assesses factors like market potential, costs, and profitability. Selection rationally chooses a project. Implementation completes the project within budget and timeline. Management operates the project to maximize returns. A project is characterized by having a defined purpose and timeline, as well as measurable costs and benefits. Good sources for project ideas include analyzing the performance and capacity of existing industries.

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63 views3 pages

Project Management: Definition

Project management involves planning, organizing, and managing resources to bring about the successful completion of specific project goals and objectives. It can be divided into six phases: identification, formulation, appraisal, selection, implementation, and management. The identification phase involves selecting a project idea. Formulation translates the idea into a concrete project plan. Appraisal assesses factors like market potential, costs, and profitability. Selection rationally chooses a project. Implementation completes the project within budget and timeline. Management operates the project to maximize returns. A project is characterized by having a defined purpose and timeline, as well as measurable costs and benefits. Good sources for project ideas include analyzing the performance and capacity of existing industries.

Uploaded by

Kalathiya Chintan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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PROJECT MANAGEMENT

Definition:
Project Management is a specialized branch of management capable differentiation
from others based on a variety of factors which include organization structure, the
process of planning and control human relation etc..

Phases of Project Management:


An entrepreneur has to consider carefully various factors from the start to the finish
in converting profitable opportunities into realities. The process of project
management may be divided into six broad phases:
1.
2.
3.
4.
5.
6.

Identification
Formulation
Appraisal
Selection
Implementation
Management

Identification

Formulation

Appraisal

T
A
R

Selection

Implementation

The requirements of these phases are as follow:

Management

Phase

Requirements

1. Identification

Selection of a project after a careful scanning of the


environment of investment opportunity and its likely

2. Formulation

return.
Translation of the idea into a concrete project with
scrutiny of its important preliminary aspects preparation

3. Appraisal

of feasibility reports.
Searching scrutiny analysis and evaluation of market,
technical, financial and economic variables. Assessing
the profitability return on investment and break even
point.

4. Selection
Rational choice of a project in the light of objectives
5. Implementation
6. Management

and inherent constraints.


Expeditious completion within the allocated resources.
Judicious operation of a project enterprise with
objectives

like

maximization

of

net

present,

maximization of return and increase in the rate of return


at low risk.

CHARACTERISTICS OF A PROJECT
Though various connotations have been given to the concept of a project they have
four basic characteristics:
(a) Investment patterns
(b) Benefits or gains
(c) Time limit
(d) Location
In short the project is an economic activity with well-defined objectives and having a
specific beginning and end. It should be amenable to planning, financing and
implementation as a unit where both costs and returns are measurable. A well
planned project includes a correct consideration of alternatives, identification of key
issues, broad participation, compactness and enforceability. It should be be neat ,
clear cut and of course specific
From the point of view of resource allocation, a project can be considered as a
proposal involving capital investment for the purpose of developing facilities to
provide goods and services which the project seeks to provide differ widely. A project
may involve the establishment of a new plant for the manufacture of steel ingots it

may involve the provision of additional educational facilities to a particular age


groups in the community , or it may aim at developing infrastructure facilities for the
marketing of agricultural commodities. Whatever be the nature of the project, a
project will involve allocation and consumption of resources , on the one hand and
generation of resources , goods , or services , on the other

SOURCES OF PROJECT IDEAS


Good project ideas-key success-are elusive. So a wide variety of sources should be
tapped to identify them. Here are some suggestions in this regard.

(1) Analyse the Performance of Existing Industries


A study of existing industries in terms of their profitability and capacity utilization is
helpful. The analysis of profitability and break even level of various industries
indicates promising investment opportunities which are profitable and relatively risk
free. An examination of capacity utilization of various industries provides information
about the potential for further investment. Such a study becomes more useful if it
done region wise, particularly for products which have high transportation costs.

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