Example: confidence

Lesson 1 - Haryana (India)

1 Lesson 1 MEANING, NATURE AND IMPORTANCE OF of project and project of Family of selection life Tools and techniques for project manager s roles and Self assessment reading this Lesson , you should be able toa)Define the project and explain the nature and classification of )Understand the concepts of idea generation, project life cycle and Projects have a major role to play in the economic development of a the introduction of planning in our economy, we have been investing large amountof money in projects related to industry, minerals, power, transportation, irrigation,education etc. with a view to improve the socio-economic conditions of the projects are designed with the aim of efficient management, earning adequatereturn to provide for future development with their own resources.

Non-Industrial Industrial Non-Conventional High Conventional Low R&D Technology T echnology T echnology Mega Major Medium Mini Grass Expansion Modification Replacement Diversification New Project Normal Crash Disaster Fig. 1.2 Classification of Project 1.6 PROJECT SELECTION PROCESS

Tags:

  Industrial, Lesson, Lesson 1, Haryana, Industrial industrial

Information

Domain:

Source:

Link to this page:

Please notify us if you found a problem with this document:

Other abuse

Transcription of Lesson 1 - Haryana (India)

1 1 Lesson 1 MEANING, NATURE AND IMPORTANCE OF of project and project of Family of selection life Tools and techniques for project manager s roles and Self assessment reading this Lesson , you should be able toa)Define the project and explain the nature and classification of )Understand the concepts of idea generation, project life cycle and Projects have a major role to play in the economic development of a the introduction of planning in our economy, we have been investing large amountof money in projects related to industry, minerals, power, transportation, irrigation,education etc. with a view to improve the socio-economic conditions of the projects are designed with the aim of efficient management, earning adequatereturn to provide for future development with their own resources.

2 But experienceshows that there are several shortcomings in the ultimate success of achieving theobjectives of the proposed OF PROJECT AND PROJECT MANAGEMENTThe term project has a wider meaning. A project is accomplished by performing aset of activities. For example, construction of a house is a project. The construction of ahouse consists of many activities like digging of foundation pits, construction offoundation, construction of walls, construction of roof, fixing of doors and windows,fixing of sanitary fitting, wiring etc. Another aspect of project is the non-routine natureof activities. Each project is unique in the sense that the activities of a project are uniqueand non routine.

3 A project consumes resources. The resources required for completinga project are men, material, money and time. Thus, we can define a project as an organizedprogramme of pre determined group of activities that are non-routine in nature and thatmust be completed using the available resources within the given time us now consider some definitions of project . Newman et. al define that aproject typically has a distinct mission that it is designed to achieve and a cleartermination point the achievement of the mission .Gillinger defines project as the whole complex of activities involved in usingresources to gain benefits. Project management institute, USA defined project as asystem involving the co-ordination of a number of separate department entitiesthroughout organization, in a way it must be completed with prescribed schedules andtime constraints.

4 3 According to the encyclopedia of management, project is an organized unitdedicated to the attainment of goal, the successful completion of a development projecton time, within budget, in conformance with predetermined programme specification. Though project management is in the process of getting evolved as a separatebranch of study, projects are not new to the earth. One of the seven wonders of theworld, the pyramids date back to 2650 which stand as the hall mark of Egyptiancivilization. The period of construction of the Taj Mahal, another wonder of the worldis reported to be during 1626-1648 It is reported that about 20,000 persons workedfor nearly 22 years to complete this spectacular structure, which stands today asmankind s proudest creation.

5 One can imagine the extent of resources and expertisethat would have been put forth for the completion of such magnificent management is an organised venture for managing projects, involvesscientific application of modern tools and techniques in planning, financing,implementing, monitoring, controlling and coordinating unique activities or taskproduce desirable outputs in accordance with the determined objectives with in theconstraints of time and OF PROJECT(1)Objectives : A project has a set of objectives or a mission. Once theobjectives are achieved the project is treated as completed.(2)Life cycle : A project has a life cycle.

6 The life cycle consists of five conception stage, definition stage, planning & organising stage,implementation stage and commissioning stage.(3)Uniqueness : Every project is unique and no two projects are similar. Settingup a cement plant and construction of a highway are two different projectshaving unique features.(4)Team Work : Project is a team work and it normally consists of diverseareas. There will be personnel specialized in their respective areas andco-ordination among the diverse areas calls for team work.(5)Complexity : A project is a complex set of activities relating to diverseareas.(6)Risk and uncertainty : Risk and uncertainty go hand in hand with project.

7 Arisk-free, it only means that the element is not apparently visible on thesurface and it will be hidden (7)Customer specific nature : A project is always customer specific. It is thecustomer who decides upon the product to be produced or services to beoffered and hence it is the responsibility of any organization to go forprojects/services that are suited to customer needs.(8)Change : Changes occur through out the life span of a project as a naturaloutcome of many environmental factors. The changes may very from minorchanges, which may have very little impact on the project, to major changeswhich may have a big impact or even may change the very nature of theproject.

8 (9)Optimality : A project is always aimed at optimum utilization of resourcesfor the overall development of the economy.(10)Sub-contracting : A high level of work in a project is done throughcontractors. The more the complexity of the project, the more will be theextent of contracting.(11)Unity in diversity : A project is a complex set of thousands of varieties are in terms of technology, equipment and materials, machineryand people, work, culture and FAMILY TREEA project normally originates from a plan, national plan or corporate plan. Innormal scheme of things, the family tree for a project would be as given belowPlan = National/Corporate plan with target for = health programme, educational programme, R&D = Power plant, hospital, housing project Package = Water supply, power supply and distribution = Award of water supply contract, construction & = Excavation, laying of cable, preparation of Project Family OF PROJECTSThe location, type, technology, size, scope and speed are normally the factorswhich determine the effort needed in executing a project.

9 Project can be classifiedunder different heads, some of which are shown in figure OF PROJECTSN ationalInternationalNon-IndustrialIndust rialNon-ConventionalHighConventional LowR&D TechnologyTechnology TechnologyMegaMajorMediumMiniGrassExpans ionModification ReplacementDiversification New ProjectNormalCrashDisasterFig. Classification of SELECTION PROCESSI dentification of a new project is a complex problem. Project selection processstarts with the generation of project ideas. In order to select the most promising project,the entrepreneur needs to generate a few ideas about the possible project one can6undertake.

10 The project ideas as a process of identification of a project begins with ananalytical survey of the economy (also known as pre-investment surveys). The surveysand studies will give us ideas. The process of project selection consists of followingstages : Idea generation Environment appraisal. Corporate appraisal Scouting for project ideas. Preliminary screening. Project rating index Sources of positive Net Present Value. Entrepreneur Generation :- Project selection process starts with the generation of a projectidea. Ideas are based on technological breakthroughs and most of the project ideas arevariants of present products or services. To stimulate the flow of ideas, the followingare helpful:SWOT Analysis :- SWOT is an acronym for strengths, weaknesses, opportunities andthreats.