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Project Management

Module II

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Project management is a set of

principles and tools for Defining

Planning

Executing

Controlling . . . and

Completing a PROJECT

What is Project Management?

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Projects are oriented towards a goal.

There is something unique about every

project.

Projects have a finite duration.

Projects require coordination of

interrelated activities.

Project Management Criteria

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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

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Sources for

innovative

idea

Analyze market,customers and

environment;

Analyze your

existing business

Check youridea;

Check yourself

Evaluation

level

Implementation Results

Innovation idea

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New-Product Development Process

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Preliminary screening

Compatibility with the promoter

Consistency with governmental priorities

Availability of inputs Adequacy of market

Reasonableness of cost

Acceptability of risk level

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Feasibility Analysis

INTERNAL

ENVIRNMENT IDEACOLLECTIONEXTERNAL

ENVERONMENT

MARKET

APPRAISAL

1. Demand

2. Supply

3. Competition

4. Cost

5. Import & Export

6. Consumer Behavior

7. Distribution Channels

TECHNICAL

APPRAISAL

1. INPUTS

2. PRODUCTION

TECHNOLOGY

3. PRODUCTMIY4. EQNIPMENT

CHOICE

5. LOCATION

& SITE

6. LAYOUT

7. WORK SHEDULE

FINANCIAL

APPRAISAL

1. Investment

2. Financial

3. Cost4. Profitability

5. Breakeven

6. Cash flow

7. Investment

Worthiness

Economic

Appraisal

1. Cost & Benefit

2. Impact on

Society3. Self sufficiency

4. Employment

New product development

Feasibility Study

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Project planning processEstablish the project constraintsMake 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 scheduleWait ( for a while )

Review project progress

Revise estimates of project parameters

Update the project schedule

Re-negotiate project constraints and deliverablesif ( problems arise ) then

Initiate technical review and possible revision

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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.

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Project implementation stages

Project integration

Project Management

Project Deadlines Management Project Costs

Quality Control

Human Resources Management

Communication

Project risks management

Supply management

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Monitoring and Evaluation

The Five Evaluation Criteria

1. Efficiency

2. Effectiveness3. Impact

4. Relevance

5. Sustainability

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EfficiencyThe productivity in project implementation. The degree to which Inputs havebeen converted into Outputs.

EffectivenessThe degree to which the Project Purpose has been achieved by the projectOutputs.

Impact

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

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

SustainabilityThe durability of the benefits an and development effects produced by theproject after its completion.

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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.

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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 specialistsentrepreneurs

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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 andtechnology, invention and innovation

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Features of Innovation

Novelty: Innovation is something new

Function

Technic

Design (?)

Implementation: Innovation is introduced into

market

Modification:A innovation should cause achange/improvement

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Types of innovation

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Incremental Innovation

Incremental innovation refers to simple changesor adjustments in existing products, services, orprocesses

Continuous improvement, is the process oftrying to find ways to improve and enhance acompanys products and processes from design

through assembly, sales, and service

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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.

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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?

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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

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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

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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

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Documents