PROJECT MANAGEMENT is the application of knowledge, skills, tools, ATTRIBUTES OF Good Manager- A good manager possesses a

and techniques to plan, execute, monitor, and complete a project combination of skills, qualities, and behaviors that enable them to lead and
successfully. A project is a temporary endeavor undertaken to create a manage teams effectively. 1) Leadership Skills- Able to set clear goals and
unique product, service, or result. Project management ensures that the provide a compelling vision for the team. Motivates and energizes team
project's goals are met within predefined constraints such as time, budget, members to perform their best. Takes responsibility for decisions and
scope, and quality. Project management involves coordinating various outcomes. 2) Communication Skills- Explains expectations, tasks, and goals
activities, managing resources, and addressing risks to achieve the desired effectively. Pays attention to team members’ concerns and feedback.
outcomes while meeting stakeholder expectations. OBJECTIVES 1) Provides actionable and supportive feedback. 3)Emotional Intelligence-
Achieving Project Goals- Ensure the project delivers the intended Understands and respects the feelings and perspectives of team members.
outcome, whether it’s a product, service, or process improvement, within Recognizes their own emotions and how they affect others. Handles
the defined scope. 2)Time Management- Complete the project within the disagreements with diplomacy and tact. 4)Decision-Making Skills- Evaluates
agreed timeline by carefully planning schedules and monitoring progress. data and scenarios to make informed choices. Takes timely action, even in
3)Cost Control- Manage the project budget effectively to ensure the project uncertain situations. Finds innovative solutions to challenges.
stays within financial constraints while achieving its goals. 4)Quality
Assurance- Deliver outputs that meet or exceed the quality standards set at
Social Cost-Benefit Analysis (SCBA) is a methodology used to evaluate the
the beginning of the project. 5)Efficient Resource Utilization- Optimize
overall impact of a project or policy by comparing its social benefits and
the use of human, financial, and material resources to prevent wastage and
costs. Unlike traditional financial analysis, SCBA considers the broader
ensure sustainability. 6)Risk Management- Identify potential risks early,
economic, social, and environmental consequences to determine whether a
develop mitigation strategies, and manage uncertainties throughout the
project contributes positively to society. Key Components- 1) Social Costs-
project lifecycle. 7) Delivering Value- Ensure that the project adds
Monetary costs incurred for the execution of the project. on-monetary
measurable value to the organization, customers, or end-users.
consequences, such as environmental degradation, displacement of
communities, or traffic congestion. The value of foregone alternatives when
GENERAL MANAGEMENT- General management involves overseeing resources are allocated to a specific project. 2) Social Benefits- Measurable
and coordinating the day-to-day operations of an organization or a business advantages like increased revenue, job creation, or infrastructure
unit to ensure efficiency, effectiveness, and alignment with strategic goals. development. Improved quality of life, health benefits, or economic
It includes planning, organizing, leading, and controlling resources to stimulation in adjacent sectors.
achieve business objectives. It Setting long-term and short-term goals.
Developing strategies to achieve organizational objectives. Allocating ZERO-BASED PROJECT FORMULATION is a method of designing a project
resources effectively. It Defining roles and responsibilities. It Providing where every element, activity, or cost is justified from the ground up, without relying on
direction and motivation to employees. It Building a positive organizational past assumptions or pre-existing frameworks. This approach is particularly useful when
culture. creating projects in new contexts, restructuring existing ones, or ensuring efficient
resource allocation. PRINCIPLES- 1)Starting from Scratch- Begin the project design
as if no prior assumptions, resources, or processes exist. Avoid biases or reliance on
PROJECT CHARACTERISTICS- A project is a temporary endeavor historical data unless justified for the current scenario. 2)Justification of Each
undertaken to create a unique product, service, or result. Projects have a Component- Each activity, resource, or cost must be independently evaluated for its
clear start and end date. They are not ongoing or permanent activities. Each necessity and alignment with project objectives. 3)Focus on Objectives- Design the
project creates a distinct outcome, whether it's a product, service, or project strictly based on achieving the defined goals and outcomes. Avoid including
solution. Projects develop in steps, with continuous refinement as they unnecessary activities or costs that do not contribute directly to objectives. 4)Cost-
Effectiveness: Prioritize activities that deliver maximum value relative to their costs.
progress. Project Requires efficient allocation and management. Limited by
available resources, including budget, personnel, and materials.
ROLE OF FINANCIAL INSTITUTIONS IN PROJECT FINANCING- Project Appraisal is the systematic evaluation of a proposed project's
Financial institutions play a crucial role in facilitating project financing by viability and potential for success before committing resources. It is a critical
providing the necessary financial resources, expertise, and support to ensure step in the project management process that helps stakeholders assess
successful project execution. Their involvement is particularly important for whether a project aligns with organizational objectives, delivers expected
large-scale, capital-intensive projects such as infrastructure development, benefits, and justifies its costs and risks. PURPOSE- 1)Decision-Making:
industrial ventures, or energy projects. Key Roles- 1)Provision of Capital- Determines whether to proceed with, modify, or reject a project. 2)Resource
Financial institutions provide loans or credit facilities to fund a significant Allocation: Ensures optimal use of limited financial, human, and material
portion of the project's capital requirements. Some institutions, such as resources. 3)Risk Identification: Identifies potential challenges and
investment banks or development banks, invest directly in the project by uncertainties. 4)Sustainability and Impact: Evaluates the long-term effects
taking an equity stake. 2)Risk Assessment and Management- It Suggest or and sustainability of the project.
implement measures such as guarantees, insurance, or hedging strategies to
reduce financial risks. 3)Structuring Financing Models- Provide long-duration
Project Cost Estimation is the process of predicting the financial resources
loans aligned with the project's cash flow patterns to ensure sustainability.
required to complete a project within its defined scope. It involves forecasting
4)Monitoring and Oversight- Monitor project milestones and financial
all direct and indirect costs, enabling project managers to allocate budgets
performance to ensure compliance with terms. Release funds in stages based
effectively and ensure financial feasibility. It Helps determine the total cost of
on project progress, reducing the risk of mismanagement. 5) Advisory
a project for funding and budgeting purposes. This Ensures the efficient
Services- Help in structuring the project, evaluating funding options, and
allocation of financial and material resources. It Serves as a baseline for
preparing financial models.
tracking project expenses and identifying variances. TYPES Of cost In
Project: Direct Costs, Indirect Costs, Fixed Costs, Variable Costs,
Project implementation refers to the phase where planned activities and Contingency Costs..
strategies are executed to achieve the project's objectives. It involves turning
project plans into actionable tasks, coordinating resources, and ensuring the
Project Financing refers to the arrangement of financial resources for a
project stays on track. STEPS - 1)Preparation for Implementation- Assign
specific project, typically involving long-term funding structured around the
resources (personnel, budget, equipment, and materials) as per the project
project's cash flow and assets. It is a specialized method of funding large-
plan. Assemble and orient the project team, defining roles and responsibilities.
scale infrastructure, industrial, or development projects where the repayment
2)Execution of Tasks- Distribute specific tasks among team members based
of loans and returns to investors primarily depend on the project’s ability to
on expertise and availability. Follow the established workflows,
generate revenues. OBJECTIVES 1)Enable large-scale projects that might
methodologies, and tools. 3)Monitoring and Control- Use project management
be unfeasible using traditional financing methods. 2)Minimize risks for
tools to track milestones, deadlines, and deliverables. Verify that deliverables
sponsors by isolating the project from their other business activities. 3)Attract
meet quality standards. 4)Stakeholder Engagement- Provide consistent
diverse funding sources, including debt and equity investors. 4)Ensure
updates to stakeholders through reports or meetings. Address concerns or
transparency and accountability in project execution and financial
disputes promptly and constructively.
management.