Raject Management

(Prof. Deepa ).

Exploin dittexend examples of projec monagtment in

lounch of neo produ t
Explain hon uncertainity are handled in PERToppronk
to projec plonning
Q.3
Dehne prejeth sloing itt characterishia
.4 Explain 'S' CuYve tojh a neat diaqro m
IAbat are he respocn&ibility 6l prjeet mana qtY.
IAhat ore the quaitiES of good project managey
9.1 EAploin the conLep t of GRNTT chart in pxoject
managemen
Explain he content of pioj ect repov
Discujr in detul e teh- economil ees feasibilty
of projett
ghort Note
a)ABs
b).Projtet Croshing
c). Essenial Tequire mentJ_ OF projee managtm ant
soFtooe
Eaploinexpontntial 6mosHhing methed OF Foreca Hing
mouing Avexage method vi teighted aveva qt methad
Psoject lite cyde.
 Dala
Poge

14)os)2023
Talal hi enBexprises pramoBed by shri S.m. Talathi
(oonds to inlzoduce d. a neo prouct estimaled sales
Life oF5 the manufocku ri ng equipment oil) cost
of S,00,00 0|- oith srap Oyaue ofR 30,00 b
ata the end ot 5 ysTbe uoorking copital requirement
i's 4o,0b0 - cohich S yrs
oill be Yealied ofter
Interes is Co nsidered as o/

P.y factors PBIOT

YearS
O909ò 2,50,06 0
O.8264 3,00,00 D
0-75l3 3,15,0 bD
0-6830 3,60,00 D
0.6209 2,2s,00o
under sLm is l,00,60o]
The deprecialion ta be charqtd
In come ax appli cable is 46 NPy method
Tvaluate the praposal using (PAT D)
407 PYC
PBT Tax PAT
year Py.fac. PBIDT Depre.
60,060 40,600 ,90,00b 1,12,110
0.9096 2,50,000 IL I,50 000
80,06 6 I,20,080 2,20,00 a 1,81,868
0-8264 3,00 060 2,00,000
2,15,00 o L,10,006 I,65,0 60 199,04s
3 6.1S13 3,75,006 14,84 &
2,60,000 104006 1,56,0 66 2,50,000
0-6830 3,6o 006 al,15,0& 0 10 8658
5 1,25,000 S0,000 15, 000
6-6269 2,25,00D 2483 6
40,000
30,000 1862

880S82
NPY= þyIPy co.
a&6582S,40,006
3,40,5 82
Ahot is project 9
poroTy unique ¢ proqrassive attemp or
Tem intong
produce Some kind of tongi ble or nqible res
Doy to doy aclivily is not projecl
JeaBures 0F project .
Predetermined objeckives -
Definite lite spon
Single enBity.
Resaurces
Advance planning
Team woYk
Life Cycle
 Bosed ôn Activity
Based on Size
Bosed 0n Location.
Bostd 0n Complehion timt.

Pormula's

).meon Absolute Deviation. I|ft - At|

2)Meon Square erroY

ft-At x100
9).meon Absolute pexcetn tog e erYOY
At
 shesate.

Moving Averoge.
Ackual Sales quantities far the last lo year are Dre.
in the toble below
Find the forecosl btlow for the yeor I1, using
as co tll as 3 yeor moving avera ge , ahich oF the
forecost is moYe eliable on the bosis 0f meon
eYYOY Squore
Sales FoTe cos t ErrOY CSt-ft)2
Sales (St-fE)

230
220
3 200 225 -)5 625 -0l2s
4 240 210 30 900 0.125
230 220 0043
6 260 235 25 625 .096
300 245 L
55 3025 0:18
8 240 280 -40 |G00 -01.
280 210 100 O035
10 320 260 60 3600
g00

los1S o.944

Meon Square Erior : I(St-Ft) 2

10S7S
132 2
meon Absclute <)eviaion 255 31:87.
 meon Absoluie Perenloge z
KA60.014,100
1115i.

Thret Yeor fMouing

Sales ForeCast Error (st-fE)2
Sales CSt-ft)
L230.1
2201
200
L 240 211 23 529 0-095
230 220 I00 0.d43
6 260 223 31 1369 0-14
300 243 3249A 019

240 263dai-g3L 524 0.045

261Ll13aLhle 0.046
260
326 213LL47chL 2269

8154 O.13.

msEL8154/1 1I65dcth hsiaucak

210|730
o13/1 Xlo0 1o-421
 Dmiss. katik is Considering 9 proechr"'P''o' Eoc.
50L/-.
26|03l203
ohich YequiYes on inital 'outle t of
expected Corh inflots from his projectt are The
Yeay

11L 98L
19L 22 L
92L 18L
4 37L

Caltulate Dis- Poyback Period for eo ch oF he projech it

4he cosE of capital is ta
Aduised ohich poject cojl be 6elecled

Yeor Pv Pvcl CUmmu.

127. Pvcl
0.893 q82300 982306
2 191 O-197 15l4360 2496600
82L 0712 2218400 4775000
81L 0636 23,53260 112820o

1128200

Discounted Poybock Period : Yeor of ful) + uncov.amtof Invt

YeCovery PYOF cl duing
22 5000
the yeor
3YYS + X l2 months
2353200 0-096 X12 1s
3 YYS + Imonth 5 days.
 Pvc Cummu. pVcl

38L 0.899 839340o 3393400

22L O.797 175340Ô 514680o
18L 6712 2816002 6429400
3
10L 0 686 63600b 1664400
4

I606600
115340D

YYS t lo monh 230 doys

Yroject ' i s more prefero bl.

Becouse iH's DiscountedPoyback Period is les Fhan projtd
p
 Qavit icul ovt Topan Gemony
Cost oF Mochine loL12L
Life oF mathin 5YYS5YYS.
pBTe
I20060 I,50,000
1,20,000
1,l6,000 1,36,066.
80,000 1,16,00
I,00,000 I,00,0 00

Colculate Poybock Pevio d ossuming 2 dax 8c

Dis. foc.@ol.

yeaY PBT Tox PAT Disfo

2L 10
95 PAT Depre.
I20,000 42060 18000 2,18000 0.909 252102
g1500 58500 2,58,500
3
0826 213521.
98500 11500 2,11,500 203891.
4 Bo000 9 8000 52000 2,52000 0.683 171l16.
1,00,000 35000 65 000 2,65,000. 0-621 164565
2,00,000 124208

4151 IsTI64
IG4S6s

4 yrs t I1 months 1f duy:

 PBTa TOx PATu
c L Dis dat aLPvct
8s
1,50,000 52,500 q7500 331500 6 909 806188
1,20,000 42000 18000 3,18 000 6.g16 162668
,30pb0 45,500 84500 3,24500 0151 243160
38,500 11s00 31500 6.683 212755
4
1,00,000 35,000 65 000 96s000 0.611 199405
S
240p60 149640

Cumm.Pvc|
366788 966188
2 262668 569456
3 143100 813 1s6.
4 g121S5025911
S 1994os 1215316
149040 1364356
Cumu. Pvel.
174089 X12
952702
189405
466223
$70120 4Y15 t 1l monthf- 14 days
840236
1006801,
Ja Gtimony ptoject is more thanpreferable bez
it's paubath period is ltsg japan.
9.2b).Calculat e disco unted payback peiod mon ths of
0ih iniiad invB 240¢ inflbos 2S,Ss|S5 protet
d900.
Assum ateiof dis Jo per y t o 2
32.2e

95 0-909
23422
55 O.82645.43 68
3 16 A84
075)
200 0. 683 137 32)xutauO

56
131

3 YI t g'month

40 monhyi 27 days
 6,00 600 0-909 545400 S45,400
9,00006 6.816 2,41800
247800 193200
2,00,0b0 0.1515o,260. 943,400
-689 341,500 ln &490o
4 5,06,000
5,00,000, O.621 3]0,50059,5400

3 J1st 56600
3,41,506

91Y5 4 2. month 29 dayj

NPV PVCI - PvCo

Is9s400 - |00O000

JS95400
TRR VotNPVa
(YhYa)
NpVa - NPY8

Yo lower Tate of dis

NPVa lober Yote of NPV
Yb Higher Yate of dii
NPVb Higher rate ofNPY
 Datu

A8C IHd is evaluahinga project with expected coshllbw

oYe as follo to

YeoY Cashfloco
lo 00,000
L10,000
9,00,000
3 306,000
6,00,000
3,00,000 8PP21

Cal culate IRR 0f project

10/

YeoY Coshfloco 10/ PycI

0.909 154530 o96790 S3170
I,16,000
16S200 0&4 12 162400
9,06,000
0-15) 225300 013L 219300
9,00,000
O.683 409800 O-659 110058 395400
6,00,00 0. OS93 177400
S 9,00,000 0-621 196300

I141136

NPy = 1,41,136
 Dote

14
I1o,000 L08 10I47906ate o.81b
3
Q00,000
3,00,000
0756
06s1
Isl200
197lo0
0169
0614
149096
l 1S3800

6,00000 343200 n02206

3,00,000 0497 149100oSI. 3J5206
ISI700
q8Rs00

-|1500
14 + 15990 (1S-14h)
15990
1S990 -(-1lSoo))
I3996 (1).
27490.
+ 0-S82l1: ).
14 S82%
 classe

Ahauti indushjes hos invB. Pra TW 46 Lldh

The expeched ashinlog
Caleulake IRR ih Hhe help of 10/ 4 16
Year Inflow 107

1,00,000 0.909 636300L0869608300

27,00,000 0-8265,18,2000156 529200

38,00000 0151G009000-6S8 526400

6-S12 457600
4 8,00,000 0-683 5,46,400
5 0621 5,58 900497 441306
9,00,0060-S645,01,600s0432388800
6
J 00-SI3
10,00,00 513,6060316 9,16,000
8 lo,0o,000 04674,67,000o-321 3,27000
8,60,000 0 4249,39,200 0:284 L 227200
10 6,00,060.20:386. 2316000:24]L48,200

4979000 4036000
q19600 36600
4
47900 (1s'o)
(479000 -36000)

+ q79000 Cct )
443 00 o
+ 1:64 ( s ).
 MY. mtd has on invt opportonity cos Hing 9 4o,0oo 1.
toith he fotloing net C
cE. f . a g s

YeoY PVfot CUmmul

7000 Ô.4090&810 6363 6363 6090

G
7000o.826o.1S65182 1214S 5292.
1000 07610.65g5257 7462 4606.
0.683 0.512 4181 22183 4004
1000
5
6
7006 0.62|0497
432
o.S64o.316 4512.31042
4347 26536
g419
3456.
2341
looc6.S19O3165130 ,36112
43177
3160 806
815, 006 0.467
42404747
4905 3st9:
00.424
1o,00 O.284 2846.
10 4,00 0 0.9366 0.247 IS 44 48961 q88 384939
48961 g9426
NPY (ID'!): 8 96|
NPy (1s) -SA6

107. 896)
(&961- (-S&o)
&961
9541
10 to94 XS'
14.7

3628
1005

113 467 monhs 4 17 doys

frojeat nanaqa ment
ol/os/aos4
G1om ht follouing qiven informaHon abeut demand
Of item

month Demond Er7OY

Cin units ). cst-ft) cst-H)
920
228
3 2171
219-t1 222 -9
258T 221 37ee 1369 O-l434
lo 100 00415
6 2411 231
239 239
4 -On0082
2441 246 -2

225 O-0586
256 241
246 14 196 O6538
260
253 12 144 0-0453
265
260
Calculate forecosted Uolue úsin hree month moinq ovérogt
4 five month moving overagt 2047 on3648

MSE 2047/&
437 8 11.62S.
MAD
4r541f 456
MAP o3648/& xX l66
 Cive eats moving Avexag

Month Demond

920
9287
3 217
4 219
S 958
228
6 94)
939 233
944
9 256
2601
26S
 Date
Page

'5 CuYYe 0a/o4|224:

Cin)

Time
 dacsute

O
16l64la024
Aci vity A8cD E CGH I
@rodisorA A 88C E DE GH
Time 68 8 9018 10 8 2 21

18
Fzla
E(18)
Gc8)

H
(2)
(8) Fcio) 36
24 40
34

A BEGI
c8) (1B) (8) (87)

47

H
Rckivily
Precedbr A
2 12

6|1s
e (4) Gta),
oloA(2
C(1)
,)
H

(3)
14

S
9
I1

H
2 4455 3
 Ackivity C E
A B
Preceding
-Time 6 4 3 210 4
 (20 24
3
83 3 S 11 5
20
I5 42 D
3 2
15 12.
6
6 6
4
6 A
6 6 Flow
flow
Aclivity Tnde
Total LÀ LS ES
e
LS-ES
IF-T
24
(4) +C16) +(4) (6)+
G+ E B + A
|2
12! (3) C
D(2)
4 (4 G 1o) B
66
20 12
11 6
13
3 4 6
4 5
EF B A A
EF D C A
Achurty) corent ofEfRcvity- Sueror of(ES
’low free
clacoate
 dlccate
Data
Pege

A 8 C E
Aclivity 3
4 33 3 2 2

Pretedor A B