DR M ASIF HASAN Assistant Professor Mechanical Engg

DR. M. ASIF HASAN Assistant Professor Mechanical Engg. Section University Polytechnic A. M. U

CHAPTER 5 DR. M. ASIF HASAN Preliminary Project Report

Preliminary Project Report DR. M. ASIF HASAN you As a prospective entrepreneur, are required to decide at the outset the product you have to manufacture or the service you have to provide

Preliminary project report (PPR) is a simple brief data-sheet that gives you DR. M. ASIF HASAN an insight into the following: -- How much money, manpower and material would be required to set up the project? ?

-- What type of machines would be required? ? DR. M. ASIF HASAN -- What are the sources of technology that would be required? ? And -- What would be the economic gains from the project? ?

In short, PPR is a brief outline of the DR. M. ASIF HASAN project that tells you quickly about the viability of the project, so as to help you decide whether it is worth pursuing further or not

Advantages of PPR -- At the stage of preparing a PPR you may DR. HASAN have in mind not. M. just. ASIF one venture/product, but 3 or 4 ideas to choose from. Since it calls for considerable time and resources to prepare a Detailed Project Report (DPR), it would not be advisable to prepare a DPR for every product idea

-- You get quickly enough data such as projected production level, raw DR. M. ASIF HASAN material requirements, infrastructural requirements etc. to fill up the form required for provisional registration or approval of your unit with the concerned agencies

-- PPR instil confidence in you and motivates to start the time-consuming process of data collection and preparation of a DPR DR. M. ASIF HASAN Major Contents of a PPR (1) Name of the entrepreneur, Address, Educational Qualifications, Work Experience, Any special training, type, location and name of project, type of the organization (proprietary/partnership etc. )

(2) Details of machineries and equipment such as specifications and price, and addresses of their suppliers DR. M. ASIF HASAN (3) Details of raw materials required such as quantity, price and source (4) Type of Utilities required such as Electricity, Water, fuel, etc. , and annual expenditure on these utilities

(5) Type and no. of manpower requirement such as skilled, semi-skilled, unskilled etc. , and details of expenditure on their salaries DR. M. capital ASIF requirement HASAN for (6) Details of fixed land/building, machinery, furniture & fixtures, etc. (7) Details of working capital requirement for raw material stock, semi-finished goods stock, one moth

(8) Total cost of the project which is a summation of fixed capital, working capital, preliminary & pre-operative DR. M. ASIF HASAN expenses (9) Means of Finance such as term loan, working capital loan, own investment, subsidy, etc.

(10) Project profitability analysis which DR. M. ASIF HASAN includes calculation of sales revenue, manufacturing expenses, selling & distribution expenses, administrative expenses, Interest, depreciation, gross profit, Income tax, and net profit

M. to. ASIF HASANproject -- You may. DR. refer ready-made profile available with the District Industries Centre Or State Technical Consultancy Organizations for advise

DR. M. ASIF HASAN THANK YOU