Project Planning Management

Presenting
on
Unit 2
BY:-
Yash Kumbhare
Atul Hemne
Mohd. Faisal Aslam
Ahinsa Bekte
Akshata Chandragade
PROJECT MANAGEMENT DEFINITATION
“PROJECT MANAGEMENT” is:

 the application of knowledge, skills, tools

and techniques to project activities in order
to meet stakeholders’ need and
expectation.

 refers to the series of methods and tools that

are used to plan and implement a changer or
project from its inception to its completion.
PROJECT IDENTIFICATION
DEFINITATION
“PROJECT IDENTIFICATION” is:

 a process to assess each project idea and select

the project with the highest priority.

 concerned with collection, compilation and

analysis of economic data for the eventual
purpose of locating possible opportunities for
investment.
Some tools used in project identification:

 Situational and Environmental Analysis

 SWOT Analysis
 Problem and Opportunity Studies
 Resource Analysis
A market analysis will be made up of a range of
factors relevant to the particular situation under
review, but would normally include the following
areas:
i. Actual and potential market size
ii. Trends
iii. Costumer
iv. Costumer segment
v. Distribution channel
Industry Environment

 Customers
 Suppliers
 Labor unions
 Creditors
 Competitors
 Government
 Community
Porter’s five forces model
What is SWOT Analysis?

 Planning tool used to understand

Strengths, Weaknesses, Opportunities,
& Threats involved in a project / business.
 Used as framework for organizing and
using data and information gained
from situation analysis of internal and
external environment.
Creative Use of SWOTs

How can we Use each Strength?

How can we Stop each Weakness?

How can we use each Opportunity?

How can we Defend against each

Threat?
Project Initiation
• On the basis of Project Initiation
Document, approving authorities appoint a
Project Manager (may call Proj. Dir. at
times)
• Project Manager’s role is to ensure:
• Requirement Analysis
• Project Scoping
• Project Phases and Milestones (Draft Model)
• Resource requirement
• And this is just the beginning …
 Pre-feasibility And Feasibility Study

A prefeasibility and
feasibility study are crucial phases in the phases in the
development and growth of any project which mitigates financial and legal risk.

The result of a prefeasibility study may be first hard project information which is
seen by corporate decision makers and investors. It acts as a basis for committing
to a major exploration program following a successful preliminary program.
Feasibility study-
• Is an analysis of the viability of an idea.

• Is an analysis of all possible solutions to a problem and a

recommendation on the best solution to use.

• Is a formal study to decide what type of system can be

developed, which best the needs of the organization.

• A feasibility study is essentially a process for determining the

viability of a proposed initiative or service and providing a
framework and direction for its development and delivery
WHY DO FEASIBILITY STUDIES?
• To find a solution that is cost effective from a business
perspective.
• To Find a solution that is well recognized
• To find out the probable market for the products
• To find out the opportunities and threats as presented by
environment
• To determine the probable income of operating the project
• To show the contributions the project can offer to the society,
among others
BENEFITS OF CONDUCTING A
FEASIBILITY STUDY
• Narrows the business alternatives.
• Gives project teams more focus and provides an
alternative outline.
• Identifies a valid reason to undertake the project.
• Enhances the success rate by evaluating multiple
parameters.
• Aids decision-making on the project
DIMENSIONS OF FEASIBILITY
STUDY

 MARKET ANALYSIS
 TECHNICAL ANALYSIS
 FINANCIAL ANALYSIS
 ECONOMIC ANALYSIS
 ECOLOGICAL ANALYSIS
 LEGAL AND ADMINISTRATIVE
Market Analysis

Market research is the systematic gathering, recording and

analysing of data about problem relating to the marketing
of goods and services.
Market research is the means by which those who provide
goods and services keep themselves in touch with the
needs and wants of those who buy these goods services.
Technical Analysis

The technical analysis of a project idea can be scrutinized in detail

to evaluate its technical feasibility. Technical analysis distinct from
commercial, financial, economic and managerial feasibility
.Technical feasibility is one of the first studies that must be
conducted after a project has been identified. In large engineering
projects consulting agencies that have large staffs of engineers and
technicians conduct technical studies dealing with the projects.
Purpose

 To ensure that the project is technically feasible in the sense that

all the
inputs required to set up the project are available.
• To facilitate the most optimal formulation of the project in terms
of
technology, size, location and so on.
• Choose best alternative
Technical Analysis Factor

 Location and site

 Plant size
 Layout
 Machinery & Equipment
 Environment impact assessment
 Inputs
 Infrastructural facilities
 Manpower
OPERATIONAL FEASIBILITY
• Operational feasibility determines if the human resources are available to
operate the system once it has been installed

• Users that do not want a new system may prevent it from becoming
operationally
Feasible

• Is a measure of how well a proposed system solves the problems, and takes
advantages of the opportunities identified during scope definition and how it
satisfies the requirements identified in the requirements analysis phase of system
development.
LEGAL FEASIBILITY

• a measure of how well a solution can be implemented within

existing legal/contractual obligations.

• It includes study concerning contracts, liability, violations, and

legal other traps frequently unknown to the technical staff

• Determines whether the proposed system conflicts with legal

requirements,

• e.g. a data processing system must comply with the local Data
Protection Acts.
BREAK EVEN POINT
• Definition At this point the income of the business exactly equals its
expenditure. If
production is enhanced beyond this level, profit shall accrue to the business
and if it
is decreased from this level, loss shall be suffered by the business.
The break even point is :-
 The point where the gains equal the losses.
 The point defines when an investment will generate a positive return.
 The point where sales or revenues equal expenses.
 The point where total costs equal total revenues.
 There is no profit made or loss incurred at the break even point.
 It is the lower limit of profit when prices are set and margins are
determined.
Break even curve

Formula
Break even point
= (Fixed cost) / (Contribution per unit)
Where,
Contribution = Selling cost – Variable cost
Fixed Cost = Contribution - profit
Purpose of Calculation
Itfacilitates an insight into the fact about revenue from a
product a service incarporates the ability to cover the relevent
production cost of that particular product or service or not.
It making important decisions in business, for example
preparing competative bids, setting pricess, and applying for
loans.
Utility of the Break-Even Analysis

The utility of Break-Even Analysis is as follows:

Itserves as the most useful and important managerial tool to study
Cost-Output-Profit relationship at varying level of output.
It is useful in reviewing pricing policies.
It aids in planning capitalisation of the enterprise.
It Provides the entreprenour of the enterprise.
It provides the entreprenour to decide whether to acquire or not assets
involving additional fixed cost.
 Introduction Of Project Planning
 Firstly lets clarify what we are talking about project planning. Many people
thing of the project plan as the project schedule and list of tasks dates etc.
That's tell you what to do when that schedule is part of your project plan.

 The activities in project planning are varied because you have to work out how
to achieve your goals.

 Every project is going to be different as the objective will be different.

 Project planning can be categorized according to type of activity, location,

time, ownership, size and needs.
What Is Project Planning
 Project planning is the process of defining yours objectives and scope
your goals and milestone (deliverables), and assigning tasks and budgetary
resources for each step.

Project planning investment should be planned within the frame work of

national policy directives, priorities should be fixed.

 Planning is the most important aspect of project preparation.

 Project planning objectives clarify the scope of what need to be done

and development the task list do to it.
Project planning in any Project Sector
Should Justify The Following
 Planning would help to optimise the use of resources.

 Optimization and better utilization of existing resources.

Results in the desired benefits.

Within the budgetary provision of a financing institution.

Understand the scope and value of your project plan.

Share your planning with the team member and make sure they read it.
Need Of Project Planning
 Today project planning process is often enhances with the use of software
tools to develop the general planning and to keep all team member aware
of the project progress.

 Project schedule is created by assigning resources to tasks and

determining the working calendar necessary for each task.

 Project planning is an organization activity a well defined purpose

complete by a dedicated project team within a given time frame.
 Project Life Cycle
The project life cycle consists of three main step.

 Pre-investment phase :-
First phase of a project.
 Construction phase :-
This phase consists mainly of developing the
infrastructure for the project as well as creation of assets.

 Normalisation phase :-
The primary objective of this phase is to produces
good and services for which a project is established.
Responsibility In Project Planning
A team can be responsible for a variety of duties and
responsibilities on the project they are involve in good project team
organization entails proper setting of team responsibilities and duties
while considering specific goals objectives of project.
 Several common responsibilities and duties of a project team.
 Gaining the right understanding of the amount and scope of assigned
work.
 Following the planned assignments.
 Increasing the details level per tasks and activities if needed.
 Inform the leader of any issues arisen.
 Proactively communicate and collaborate with other team members.
Team Work In Project Planning
 A project team is a group of individuals teamed together. Their
purpose is to achieve a specific business task or goal.

 The project teams can be created on a temporary basis or for a very

long duration. The duration can range from a week to few years.

 When working as a team the effort of the member are strengthened

shortening the time of action and increasing the effectiveness in the
results.
 Following are some tips to consider for a successful teamwork.

 Build trust.
 Establish common goals.
 Creates a sense of belonging in project team.
 Involve team members in decision-making.
 Make an understanding between parties.
 Motivate responsibility and mutual commitment.
 Stimulate communication.
 Following are the advantages of teamwork.

 Clear objective of the project.

 Good decision making process.

 Clear role responsibility and leadership.

 Trust, co-operation and support.