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    Project Management

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    PANDYA PARTH KISHORBHAI
    This document provides an overview of project management and capital budgeting processes. It discusses that a project is a temporary endeavor to create a unique product or service. Capital investments are important for their long-term effects and irreversibility but also difficult due to measurement problems, uncertainty, and temporal spread. The capital budgeting process involves 6 steps: planning investments, analysis of technical, marketing and financial aspects, selection using criteria like NPV or IRR, financing through equity or debt, implementation, and review. Feasibility studies involve generating ideas, initial screening, further analysis, and evaluation to determine if a project is worthwhile.

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    Project Management

    Uploaded by

    PANDYA PARTH KISHORBHAI
    21 views11 pages
    This document provides an overview of project management and capital budgeting processes. It discusses that a project is a temporary endeavor to create a unique product or service. Capital investments are important for their long-term effects and irreversibility but also difficult due to measurement problems, uncertainty, and temporal spread. The capital budgeting process involves 6 steps: planning investments, analysis of technical, marketing and financial aspects, selection using criteria like NPV or IRR, financing through equity or debt, implementation, and review. Feasibility studies involve generating ideas, initial screening, further analysis, and evaluation to determine if a project is worthwhile.

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    A project management startup guide presentation for undergrads

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    This document provides an overview of project management and capital budgeting processes. It discusses that a project is a temporary endeavor to create a unique product or service. Capital investments are important for their long-term effects and irreversibility but also difficult due to measurement problems, uncertainty, and temporal spread. The capital budgeting process involves 6 steps: planning investments, analysis of technical, marketing and financial aspects, selection using criteria like NPV or IRR, financing through equity or debt, implementation, and review. Feasibility studies involve generating ideas, initial screening, further analysis, and evaluation to determine if a project is worthwhile.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    21 views11 pages

    Project Management

    Uploaded by

    PANDYA PARTH KISHORBHAI
    This document provides an overview of project management and capital budgeting processes. It discusses that a project is a temporary endeavor to create a unique product or service. Capital investments are important for their long-term effects and irreversibility but also difficult due to measurement problems, uncertainty, and temporal spread. The capital budgeting process involves 6 steps: planning investments, analysis of technical, marketing and financial aspects, selection using criteria like NPV or IRR, financing through equity or debt, implementation, and review. Feasibility studies involve generating ideas, initial screening, further analysis, and evaluation to determine if a project is worthwhile.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 11

    OVERVIEW OF PROJECT The Introduction

    MANAGEMENT
    Introduction
    Project can be define as a series of activities carried out to perform a large task.
    According to Project management institute (PMI) the project is a temporary
    endeavor undertaken to create a unique product or service.

    For Ex. Dam, bridge, building Construction (Sardar Sarovar dam, Dubai burj khalifa)

    Not only big construction, the business is also considered as a project.


    Capital investments:
    importance and difficulties
    Capital investments are Capital investments has some
    important due to: difficulties such as:
    1. Long- Term effects 1. Measurement problem
    2. Irreversibility 2. Uncertainty
    3. Substantial Outlays 3. Temporal Spread
    Types of investments
    There are 3 types of assets, i.e. Physical assets, monetary assets and intangible
    assets.

    There are six types of Investments listed as below.


    1. Mandatory Investments, for eg. Medical equipment, Transport equipment
    2. Replacement investments, for eg. Replacing the old machine
    3. Expansion investments, for eg. Increasing the capacity , increase the product varieties
    4. Diversification investments
    5. R & D investments
    6. Miscellaneous investments
    Capital Budgeting Process

    Step 1: Planning

    Step 2: Analysis

    Step 3: Selection

    Step 4: Financing

    Step 5: Implementation

    Step 6: Review
    Capital budgeting process
    Step 1 : Planning – Deciding investment strategy and generation of project proposals.
    Step 2: Analysis – Detail study of technical, marketing and financial aspects
    Step 3: Selection – Decision on whether to select a project or not.
    Criterion Accept Reject
    Payback period (PBP) PBP< Target Period PBP> Target Period
    Accounting rate of return (ARR) ARR > Target Rate ARR < Target Rate
    Net Present Value (NPV) NPV>0 NPV<0
    Internal rate of return (IRR) IRR> Cost of capital IRR< Cost of capital
    Benefit cost ratio (BCR) BCR>1 BCR<1
    Capital budgeting process
    Step 4: Financing – Two source of finance, Equity and Debt
    Step 5: Implementation – Concern with (i) Project and engineering aspects, (ii) Negotiating
    and contracting, (iii) Construction, (iv) Training and (v) Plant start.
    Step 6: Review – Comparing the plan performance with actual performance.
    Levels of decision making
    Particulars Operating Administrative Strategic
    decisions decisions decisions
    Where is the decision taken Lower level Middle level Top level
    management management management
    How decisions are structured Routine Semi-structured Unstructured

    Level of resource commitment Minor resource Moderate resource Major resource


    commitment commitment commitment
    What is the time horizon Short-term Medium-term Long-term
    Key issues in project analysis
    Potential Market
    Market Analysis
    Market Share
    Technical Viability
    Technical Analysis
    Sensible Choices
    Risk
    Financial Analysis
    Return
    Benefits and Costs in Shadow Prices
    Economic Analysis
    Other Impacts
    Environmental Damage
    Ecological Analysis
    Restoration Measures
    Feasibility study : A schematic diagram
    Generation of Ideas

    Preliminary Initial Screening

    Work
    Is the Idea Prima Facie Promising
    Analysis Yes No

    Plan Feasibility Analysis


    Terminate

    Conduct Market Analysis Conduct Technical Analysis

    Conduct Financial Analysis

    Conduct Economic and Ecological Analysis


    Evaluation
    Is the Project Worthwhile ?
    Yes No
    Prepare Funding Proposal Terminate
    THANK YOU

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