Project Management

B19BB6040
SCHOOL OF MANAGEMENT STUDIES
Program: BBA(II)
Course Title: PROEJCT MANAGEMENT
Course Code: B19BB6040
Course Type: HC
Course Presenter: PROF. SAKSHI SACHDEVA
Semester & Section: VI-A
Academic Year: 2021-22
Course Pre-requisites: -
L T P: [3] [1] [0]
Pedagogy: ICT & E-CONTENT
Course Objectives:
1. To develop the student's ability to understand the techniques and process of project
appraisal.
2. To enable the student's ability to estimate project cost.
3. To enable the students to understand the environmental impact on infrastructure projects.
4. To develop the student's ability to understand project implementation and monitoring
process.

Course Outcomes:
After the completion of the course, students will be able to:
1. Understand the techniques and process of project appraisal.
2. Able to estimate the various costs required for the execution of the project.
3. Understand the environmental impact on infrastructure projects.
4. Analyze the environmental issues which have an impact on the execution of Project Management.
Syllabus:
Course Program
Unit Topics Outcomes Outcomes

Generation and screening of Project Ideas: Project Development, Political,

Economic, Social, Technological (PEST) factors, Preliminary Screening,
I Feasibility Study – Steps in Feasibility analysis, 1 2&6

Project Management: Project Identification, Project Formulation, Project

Selection, Project Planning, Project Appraisal, Project Implementation and
II Integrated Project Management 2 2&5

Monitoring & Controlling the Project: Human aspects of project management

–Project Monitoring and Control, Project Evaluation, Prerequisites for successful
III 3 2&5
project implementation, Project Success and Failure, Project Auditing and
Project Termination, E- Tendering
Project Leadership, Audit and Closure Project Leadership: Managing vs leading a
project, Managing project stake holders, Qualities of an effective project manager,
IV Managing project teams, Issues arising out of globalization, Communication, Conflict 4 2&5
management. Project Audit and Closure: Audit process, project closure, project
documentation, evaluation of project manager, team and members.
Reference Books:

1. Vasant Desai, Project Management, Himalaya Publishing House, 2011.

2. Prasanna Chandra, Project, Planning and Analysis, Financing, Implementation, TMH, New Delhi 7/e, 2009.
3. Narendra Singh, “Project Management and Control”, Himalaya Publishing House, 2009.
4. SitangshuKhatua, “Project Management and Appraisal” Oxford Higher education, 2012.
 
E-Resources:
1. https://nptel.ac.in/
2. https://learn.saylor.org
Presentation Topics:

PEST analysis industry specific

Assignment:

Feasibility study of dummy project

“Plans are only good intentions unless they
immediately degenerate into hard work.” –
Peter Drucker
What is Project?

A Temporary endeavor undertaken to create a unique product,

Service or result. The temporary nature of projects indicate a
definite beginning and end.
A project can create:
• A product that can be either a component of another item or an end item in itself,
• A capability to perform a service (e.g., a business function that supports production or distribution), or
• A result such as an outcome or document (e.g., a research project that develops knowledge that can be used to
determine whether a trend is present or a new process will benefit society).
Examples of projects include, but are not limited to:
• Developing a new product or service,
• Effecting a change in the structure, staffing, or style of an organization,
• Developing or acquiring a new or modified information system,
• Constructing a building or infrastructure, or
• Implementing a new business process or procedure.
What is project management?
• Project management is the application of knowledge, skills, tools, and techniques to project activities to meet
the project requirements. Project management is accomplished through the appropriate application and
integration of the 42 logically grouped project management processes comprising the 5 Process Groups.
These 5 Process Groups are:
• Initiating,
• Planning,
• Executing,
• Monitoring and Controlling, and
• Closing.
Managing a project typically includes:

• Identifying requirements,
• Addressing the various needs, concerns, and expectations of the stakeholders as the project is planned and
carried out,
• Balancing the competing project constraints including, but not limited to:
Scope,
Quality,
Schedule,
Budget,
Resources, and
Risk.
A Project occurs when you have a goal and a plan to achieve that
goal.
Project management is the application of processes, methods,
skills, knowledge and experience to achieve specific
project objectives according to the project acceptance criteria
within agreed parameters. Project management has final
deliverables that are constrained to a finite timescale and
budget.
Generation and screening of Project
• Generation of Ideas: Identifying suitable project ideas is the
most important step in the whole process of project
preparation. The search for promising project ideas is the first
step towards establishing a successful venture. The key to
success lies in getting into the right business in the right time.
The objective is to identify investment opportunities which are
feasible and promising.
• Generally, project ideas are generated depending on:            

 Consumer needs

 Market demand

 Resource availability

 Technology

 Natural calamity

 SWOT analysis

 Political considerations etc.,

• The project idea selection is selection of project idea from available alternatives is to be best suited to the
entrepreneurs’ capacity, competence and willingness. The project Selection includes

 Profitability

 Feasibility

 Resource-ability

• Acceptability
• A project idea should be SMART:

• S – Specific objective

• M – Measurable

• A – Achievable

• R – Realistic

• T – Time bounded
• Project identification: A search for promising   project ideas could contribute towards achieving specified
development objectives. Project identification should be an integral part of the Macro-planning exercise of
the state with sectored information and strategies as the main source of the ideas.
• Good project ideas are the key to success. Therefore a wide variety of sources should be tapped to analyze
them. To have a wide range of options, the sources of project ideas can be categorized into two they are:
A. Micro level sources

B. Macro level sources

• A] Micro level
• 1. Analysis of the performance of  existing industries
• 2. Examination of the input-outputs of various industries
• 3. Review of imports and exports
• 4. Investigation of local materials and resources
• 5. Analysis of economic and social changes
• 6. Study of new technological developments
• 7. Exploring the possibility of reviving sick units
• 8. Identification of unfulfilled psychological needs
• 9. Attending trade fairs
• 10. Stimulating creativity for generation’s new product lines
• B. At Macro level
• 1. Project ideas from government policies and plan
• 2. Project ideas from technical specifications
• 3. Project ideas from local leaders
• 4. Project ideas from Entrepreneurs
Screening potentially promising project ideas

• 1. Compatibility with the promoter

• 2. Consistency with government priorities
• 3. Availability of inputs
• 4. Adequacy of the market
• 5. Reasonableness of cost
• 6. Acceptability of risk level
Compatibility with the promoter

• The idea must be compatible with the interest, personality, and resources of the entrepreneur.
• It means
• [1] it should fit to the personality of the entrepreneur;
• [2] it should be accessible to him and
• [3] it should offer him the prospect growth and high return on the invested capital.
Consistency with government priorities

• The project idea must be feasible given the national    goals and governments regularity framework. The
questions to be raised in this context are:

• Is the project consistent with national goals and priorities?

• Can the foreign exchange requirements of the project be easily accommodated?

• Will there be any difficulty in obtaining the license for the project?
Availability of inputs

• The resources and inputs required for the project must be reasonably assured. To assess this, the following
questions need to be answered.

• Are capital requirements of the project within manageable limits?

• Can the technical know- how required for the project be obtained?

• Are the new materials required for the project available domestically at a               reasonable cost? If the
materials have to imported, will there be problems?

•  Is the power supply for the project reasonably obtainable from external sources and Captive power sources?
Adequacy of the market

• The size of the present market must offer the prospect of adequate sales volume. Further there should be a
potential for growth and reasonable return on investment. To judge the adequacy of the market the following
factors have to be examined;
 Total present domestic market
 Competitors and their market shares
 Exports markets
 Sales and distribution system
 Projected increase in consumption
 Barriers to the entry of new units
 Economic, Social and demographic trends favorable to increased consumption
 Patent protection
Reasonableness of cost

• The cost structure of the proposed project must enable it to realize an acceptable
profit with a price. The following should be examined in this regard:
 Cost of material inputs
 Labor costs
 Factory overheads
 General administration expenses
 Selling and distribution cost
 Service cost
 Economies of scale
Acceptability of risk level

• The desirability of a project critically dependent on the risk

characterizing in the assessment of risk the following factors should be
considered:
 Business cycles
 Technological changes
 Competition from substitute
 Competition from imports
 Government control over price and distribution
Steps Involved in Project
Development
Bengaluru metro project
PESTLE ANALYSIS
PESTLE ANALYSIS
Advantages of PEST
• Straightforward and only costs time to do.
• Provides an understanding of the wider business environment.
• Encourages the development of strategic thinking.
• May raise awareness of threats to a project.
• Can help an organisation to anticipate future difficulties and take action to avoid or
minimise their effect.
• Can help an organisation to identify and exploit opportunities.

Disadvantages of PEST
• Usually, a simple list and not critically presented.
• The rapid pace of change in society makes it increasingly difficult to anticipate
developments that may affect an organisation in the future.
• Collecting large amounts of information may make it difficult to see the wood for the
trees and lead to 'paralysis by analysis'.
• Basing the analysis on assumptions that may prove to be unfounded.
• PEST analysis only covers the external environment and the results need considering
alongside other factors, such as the organisation itself, competitors and the industry in
which it is working.
 PROJECT FEASIBILITY ANALYSIS

A Project feasibility study is defined as an evaluation or analysis of

the potential impact of a proposed project or program. The
purpose of a Feasibility Study is to identify the likelihood of one or
more solutions meeting the stated business requirements.
Technical
Economical
Commercial
Financial
Environmental
Economic Feasibility
• This assessment typically involves a cost/ benefits analysis of
the project, helping organizations determine the viability, cost,
and benefits associated with a project before financial
resources are allocated. It also serves as an independent
project assessment and enhances project credibility—helping
decision-makers determine the positive economic benefits to
the organization that the proposed project will provide.
Technical feasibility
• This assessment focuses on the technical resources available
to the organization. It helps organizations determine whether
the technical resources meet capacity and whether the
technical team is capable of converting the ideas into working
systems. Technical feasibility also involves the evaluation of the
hardware, software, and other technical requirements of the
proposed system. As an exaggerated example, an organization
wouldn’t want to try to put Star Trek’s transporters in their
building—currently, this project is not technically feasible.
Commercial feasibility
• Commercial feasibility is an element of the study focused on
the probability of commercial success. It's mainly focused on
studying the new business or a new product or service and
whether your organisation can create enough profit with it.
Financial feasibility
• Financial feasibility describes whether or not your project is
fiscally viable. A financial feasibility report includes a
cost/benefit analysis of the project. It also forecasts an
expected return on investment (ROI), as well as outlines any
financial risks. The goal at the end of the financial feasibility
study is to understand the economic benefits the project will
drive. 
Environment feasibility
• An Environmental Feasibility Study assesses the viability of a
proposed development from an environmental and social
perspective, identifying potential issues and threats to the
successful completion of the proposed development. Solutions
and mitigative measures are investigated.
 Steps involved in Feasibility Study

1. Project Description – Identify the project name and purpose. Include details including
stakeholders, and end result expected.
2. Goals – List long and short-term goals and what processes will be needed to achieve those
goals.
3. Timeline – What will be the estimated time until project completion?
4. Costs and Budgeting – Include all costs incurred for the project including the cost of the
feasibility study itself.
5. Market Analysis – If applicable, will the market or market environment benefit from the project. If
so, list out.
6. Resources – Identify all the resources both IT, technical, inventory, and human that will be needed
to complete the project.
7. Project Process – How will the project flow? Include flow charts showing project stages.
8. Management and Teams – Who will manage and who will work on scheduled tasks? Will project
management outsourcing be needed?
9. Observations– Statements that do or don’t support the project should be included