What is a Project?

PROJECT
Project is a complex of non-routine activities

that must be completed with a set amount of
MANAGEMENT resources and within a set time interval.
- Clifford Gray

Sanjeev Bajaj
Reader, Finance Area

Characteristics of a Project Importance

Specific and clear objectives concerning
Long-term effects,
time, budget and quality;
Irreversibility,

A temporary organization run by teams that
Substantial outlays.
are often specifically assembled;

Require large amount of funds;

Operates under tight schedule to time;

Focus on issues of Risk and uncertainty;

No benefit till project is complete.

1
Difficulties Types of Projects

Measurement Problems,
Strategic or

Uncertainty,
Tactical

Temporal spread.

Types of Projects contd. Types of Projects contd.

Mandatory investments, Projects are under taken to create

Replacement investments,
Physical assets,

Expansion investments,
Monetary assets,

Diversification investments,
Intangible assets.

R & D investments,

Miscellaneous investments.

2
Steps in Project Management Levels of Decision Making
Planning
Type of Decision Operating Administrative Strategic
Decisions Decisions Decisions
Analysis
Where is Lower Level Middle Level Top Level
Selection Decision Taken
How structure is Routine Semi-structured Unstructured
Financing decision
Level of resource Minor Moderate Major
Implementation
commitment
Review
What is the time Short-term Medium-term Long-term
Horizon

Project Feasibility Study

Market analysis,

Technical analysis,

Financial analysis,

Economic analysis

Ecological analysis