PROJECT MANAGEMENT

It is nothing but management of a project which involves planning, organizing, staffing, controlling
and coordination of a number of interrelated activities with limited resources viz., men materials,
money and time.

Here there is need to have integration of different departments, at levels below the top
management for effective communication, coordination and control. The individual (or group) who
has been given the responsibility of integrating the activities and function of various departments
and outside organization involved in the project work is called project manager or project
coordinator. Developing on the authority that is given to the person responsible for the project,
the project organization may take one of the following three forms.

1. Line and staff organization 2. Divisional organization 3. Matrix organization

PROJECT

Project is a specific investment activity with a specific starting and an ending point, intended to
create capital assets that produce benefits over an extended period of time. Project is a
combination of human and non-human resources pooled together in a temporary organization to
achieve a specific purpose. Project is an “ONESHOT”, time limited, member directed, major
undertaking, requiring the commitment of varied skills and resources.

Characteristics of a project

1. It is non-routine, non-repetitive undertaking often plagued with uncertainties.

2. It involves coordination of the efforts of persons drawn from different departments and
contributions of outside agencies and

3. The relationship in a project setting is dynamic, temporary and flexible

Project objectives and policies

Well defined objectives and policies to be finalized before starting of a project. It serves a
framework for the decisions to be made by the project manager. A clear articulation of the
priorities of management will enable the project manager to take appropriate actions.

STEPS IN PROJECT PREPARATION

1. Feasibility analysis 2. Techno – economic analysis 3. Project design and network analysis

4. Input analysis 5. Financial analysis 6. Social cost benefit analysis 7. Project appraisal

Feasibility analysis

It is the first stage in developing a project. Here through examination of pre-investment

possibilities are made. It is important to design the future course of the project. Internal and
external constraints should be studied in this stage.

Techno – economic analysis

Here demand potential and right technology is identified. Optimum size of the project,
methodology, market share, researches and alternative technology are to be identified.

Project design and network analysis

In this stage evaluation of time and resources should be done. It studies the interrelationship of
the activities it is the basis for development of financial and cost benefit analysis of the project.

Input analysis

Quantity and quality of input analysis during the construction phase and subsequent phases are
analyzed.

Financial analysis

It involves project cost, estimation of the project operating cost and estimation of project fund
requirement. Comparison of other investment alternative was done. Uncertainties should be
accounted. Success depends on reliable data used in the project.

Social cost benefit analysis

It is very important in view of what is the benefit to the society / country in terms of employment,
health and education.

Project is considered if

1. Technical configuration is fully defined. 2. Techno-economic viability of the project is

appraised and approved. 3. The cost estimate is found. 4. Financial arrangement has been
made. 5. Pre project activities have been completed and „zero data‟ is fixed.

Constraints in projects formulation

Internal 1. Managerial skill of individual 2. Advanced country‟s project may differ for developing
countries. 3. Physical inventories and infrastructures like land.

External 1. Men, material and situation outside the project 2. Government regulation, law etc. 3.
Non availability of technical persons 4. Resource mobilization

Feasibility report It is the report prepared to present and in-depth technical commercial analysis
for the consideration of financial institutions and other authorities for taking investment decisions.

Feasibility report contains 1. Raw material survey 2. Demand study 3. Technical study a) product
pattern b) process selection c) plant size 4. Location study 5. Project capital cost estimate and
source of finance 6. Profitability and cash flow analysis and 7. Social cost benefit analysis

PROJECT CYCLE (STAGES)

1. Conception phase 2. Definition phase 3. Planning and organizing phase 4. Implementation

phase 5. Project clean up phase
http://www.hillagric.ac.in/edu/coa/AgriEcoExtEduRSocio/lectures/AgEcon4710.pdf