Project meaning and definition Project is a set

Project meaning and definition • Project is a set of time bound activities with specific budget and in conformance with pre-determined program specifications. • According to the Encyclopaedia of management “project is an organized unit dedicated to the attainment of goal”. • Project is accomplished by performing a set of activities.

Project meaning and definition • According to Little & Mirrless “A project is any scheme or part of a scheme for investing resources which can be reasonably analysed and evaluated as an independent unit”.

Project Characteristics • Specific time limit- It can't continue forever. • Uniqueness-No to projects are similar as every project is unique and different. • Objectives-Every project have a mission or set of objectives. Once they are achieved, project is treated as completed. • Teamwork-It consists of diversified areas so there will be specialised personnel. • Specified Time Period- A project has definite time period. It can’t continue forever.

Project Characteristics • Life Cycle- It starts with the idea generation and consists of the following four stages: 1. Conception stage- where the different project ideas are conceived. 2. Design stage- where detailed design of different project areas are worked out. 3. Implementation stage- where the final project is implemented as per the design. This is longest stage and most of funds and time is invested in this stage. 4. Commissioning stage- this is the last stage where the project is handed over to the owner.

Project Characteristics • Risk and Uncertainty- both risk and uncertainty go on hand in hand with project and are like iceberg. Sometime risk and uncertainties linked to a project are A risk free project can't be thought of. • Change- a project is not rigid in its life span. changes may occur throughout the life of a project as a natural outcome of many factors. changes may vary from minor to major. • Optimality- a project is always aimed at optimum utilisation of resources for the overall development of the organisation.

Types of Projects • Based on the type of activity 1. Industrial- projects are set up for the production of some goods. 2. Non-Industrial- for the development of society like infrastructure development, construction of hospital, school, colleges etc. • Based on Ownership 1. Private sector- ownership is completely in the hands of the project promoters and investors. 2. Public sector- owned by the state. 3. Joint sector projects- both private players and state are the owners in different capacities.

Types of Projects • Based on project completion time 1. Normal project-no constraint on time. 2. Crash projects-are to be completed within a stipulated time. • Based on size- expressed in terms of the amount of investment required 1. small projects 2. medium projects 3. large projects

Types of Projects • Based on the location 1. National-with in the national boundaries of a country. 2. International- Fully owned, Joint Venture, Merger and Acquisition.

Types of Projects Based on need 1. new project- Finding a gap in terms of customer needs for goods and services. 2. balancing project-to balance the production gap between different units. 3. expansion- to increase the plant capacity for the current product range. 4. modernisation- When a new technology is evolved and becomes commercially operative, the existing technology becomes obsolete. 5. replacement-replacing old memory with the new machinery of the same capacity. • 6. backward integration- finished product of an organisation become the raw material for another organisation. 7. forward integration- reverse of backward integration.

Types of Projects • Diversification-When manufacturer wants to offer more than one product, it is described as product diversification. It is generally of two types. 1. Related Diversification- adding manufacturing facilities to the existing ones. 2. Unrelated Diversification- adding manufacturing facilities from the existing ones.