syllabus

Unit-I:
Basics of Project Management –Concept– Project environment – Types
of Projects – Project Life Cycle – Project proposals – Monitoring Project
Progress – Project Appraisal and Project Selection – Causes of delay in
Project Commissioning– Remedies to avoid overruns. : Identification of
Investment Opportunities – Sources of New project ideas, Preliminary
screening of projects – Feasibility studies and Reports
Unit-II:
Market Feasibility -Market Survey – Categories of Market Survey –
Steps involved in conducting Market Survey – Demand Forecasting
Techniques, Sales Projections.
Unit-III:
Technical Feasibility: Production Technology, Materials and Inputs,
Plant Capacity, Site Selection, Plant Layout, Site Preparation,
Managerial Feasibility Project Organization and Responsibilities. :
Legal Aspects of Project Management – Legalities – Basic Legal
provisions.
Unit-IV:
Financial Analysis – Capital Expenditure – Criteria and Investment
strategies – Capital Investment Appraisal Techniques (Non DCF and
DCF) – Risk analysis – Cost and Financial Feasibility – Cost of Project
and Means of Financing - Revenue estimation – Income –
DeterminantsUnit-V:
Project Management –Project Implementation and review - Forms of
Project Organization – Project planning – Project Control – Human
aspects of Project Management – Prerequisites for successful Project
Implementation – Project Review – Performance Evaluation .
 Recap of yesterdays class

 There is a project

 Establish a oxygen concentrators unit

 Your allowed time is only 3 months

 Feasibility Study

feasibility analysis is used to determine the viability of an idea, such

as ensuring a project is legally and technically feasible as well as
economically justifiable. It tells us project is worth the investment—
in some cases, a project may not be doable. There can be many
reasons for this, including requiring too many resources, which not
only prevents those resources from performing other tasks but also
may cost more than an organization would earn back by taking on a
project that isn’t profitable.
A well-designed study should offer a historical background of the
business or project, such as a description of the product or service,
accounting statements, details of operations and management,
marketing research and policies, financial data, legal requirements,
and tax obligations. Generally, such studies precede technical
development and project implementation.
 Types of Feasibility
Study

 A feasibility analysis evaluates the project’s

potential for success; therefore, perceived
objectivity is an essential factor in the
credibility of the study for potential investors
and lending institutions. There are five types
Types of Feasibility Study

of feasibility study—separate areas that a

feasibility study examines.
 1. Technical Feasibility 2. Economic
Feasibility
 3. Legal Feasibility 4. Operational
Feasibility
 5. Scheduling Feasibility
 1. 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.
 2. 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.
 3. Legal Feasibility
 This assessment investigates whether any aspect of the
proposed project conflicts with legal requirements like zoning
laws, data protection acts or social media laws. Let’s say an
organization wants to construct a new office building in a
specific location. A feasibility study might reveal the
organization’s ideal location isn’t zoned for that type of
business. That organization has just saved considerable time
and effort by learning that their project was not feasible right
from the beginning.
 4. Operational Feasibility
 This assessment involves undertaking a study to analyze and
determine whether—and how well—the organization’s needs can
be met by completing the project. Operational feasibility studies
also examine how a project plan satisfies the requirements
identified in the requirements analysis phase of system
development.
 5. Scheduling Feasibility
 This assessment is the most important for project success;
after all, a project will fail if not completed on time. In
scheduling feasibility, an organization estimates how much
time the project will take to complete.
 When these areas have all been examined, the feasibility
analysis helps identify any constraints the proposed project
may face, including:
 Internal Project Constraints: Technical, Technology, Budget,
Resource, etc.
 Internal Corporate Constraints: Financial, Marketing, Export,
etc.
 External Constraints: Logistics, Environment, Laws, and
Regulations, etc.
Causes of delay in Project Commissioning
 Managerial Feasibility Project Organization and
Responsibilities
Managerial feasibility studies are a form of project analysis
that look at every aspect of a proposal to determine its
likelihood of success before commencing.
Managerial Feasibility studies is the objectively and rationally
uncover the strengths and weaknesses of an existing business
or proposed venture, opportunities and threats which are
presented by the environment, the resources required to carry
through, and ultimately the prospects for success. In its
simplest terms, the two criteria to judge feasibility are cost
required and value to be attained.
Four-Step Managerial Feasibility Study Method:
1. Examine the Market: The first step to an effective feasibility
study method involves a critical analysis of the competitive
landscape for a product or service. Many first-time
entrepreneurs make the mistake of assuming that their product
has no competition. In reality, any other way in which a
customer allocates money, time, or attention can be viewed as
competition. The feasibility study should paint a realistic
picture of the likelihood that enough customers will be satisfied
to result in a sustainable offering.
 2. Review Technical Requirements: Understanding the needs of
the marketplace does not always guarantee the ability to meet
customers’ expectations. Including this analysis in the feasibility
study method puts the overall requirements for a successful
project into the proper context. In many cases, a study can help
determine whether the project sponsor will require more
resources internally or whether an outside vendor or partnership
can handle the tasks more effectively.
 3. Explore the Business Model: Having assessed the current
market need and a team’s ability to execute, a feasibility study
can look at the long term viability of the overall business model.
This feasibility study method relies heavily on tools like scenario
planning to ensure long term success. Project managers can
discover whether the business model actually offers enough
profit potential to make the initiative worthwhile.
 Look for an Escape Route
 “Forever” is a dirty word among many
venture capital firms. Investors like to know
that they’ll make a profit, and they want to
have a strong idea about when they can cash
the check. Common feasibility study
methods include an analysis of potential
exit strategies, especially for investors and
other stakeholders that may want to move
on. Study leaders can investigate how a
project will evolve over multiple iterations,
and whether it relies too heavily on key
personnel.
 Legal issues with Project management:

 Risk Insurance: – When a project is initiated, there are obviously

certain risks involved. Not only accessing these risks is
important, but creating ways to overcome these risks while
incorporating them in contract is equally important.
 Project contract: – A project will always include numerous
contracts. The drafting of the project contract includes the most
of lawyer’s contribution. While contracting, he would have to go
through the nature of obligations that would arise from the
contract and also, the evolution of agreements whilst making
business-related decisions. After he is done with the contractual
phase, the lawyer needs to deal with the post-contractual phase
as well. The post contractual phase will include his’ and party’s
hidden obligations which he needs to analyze and perform.
 Change control: – A contract for project when proposed must also
include a procedure for change in the contract including the
conditions of change and sometimes, listing of the situations only
in which the changes can be made. However, any kind of change
in the contract terms is highly discouraged. After the changes are
made, they must be documented concretely and also numbered
for future needs that may arise.


 Imposing restrictions: – In a project contract between two parties, it
is common that the restrictions would be imposed on party by
another. It is the duty of the lawyer to check that the restrictions
are in consonance with Section 27 of the Indian Contract Act, 1872
which states that “Every agreement by which anyone is restrained
from exercising lawful profession, trade or business of any kind, is
to that extent void”. However, exception to this can be like not
revealing secrets of the company to prevent exercise of insider
trading, etc. and to preserve the goodwill of the Company.
 Interpretation of Contract: – Any law would include the
interpretation part as it is the only way to understand it. The very
first part of interpreting any contract is its recitals. The introductory
part of a contract is usually referred to as ‘recitals’. Further, in a
contract, there are certain things which are explicitly provided
while certain are implied. Certain terms of contract are clear while
certain are tacit and it requires legal expertise to understand the
tacit terms and work as per those. Thus, the interpretation of
contract is as important as making the contract itself.
 Reprisal of issues by Arbitration or mediation:
– It is quite important to include arbitration or
mediation clause in the project contract. In
case of small disputes between contracting
parties, one cannot always approach the Court
for that, then the cases would last till eternity
and it would become impossible to accomplish
the project. Also, it must be added that which
law would govern either parties in cases like, if
both the contracting parties are foreign entities
or either of them is and such other cases. It is
also vital to decide the jurisdiction beforehand
in case anyone approaches the Court.
 Legalities – Basic Legal provisions.

 Augustine's Law: “A bad idea executed to perfection is still a bad

idea.” ... Lakein's Law: “Failing to plan is planning to fail.” Saint
Exupéry's Law: Lakein's Law: “Failing to plan is planning to
fail.”
 Avoiding the “Just Do It” Mentality. Too often an organization
rushes planning and values the execution of the project above all
else.
 Saint Exupéry's Law: “Perfection is achieved, not when there is
nothing more to add, but when there is nothing left to take
away.”
 Fitzgerald's Law: “There are two states to any large
project: Too early to tell and too late to stop.”
 Parkinson's Law: “Work expands to fill the time available.” ...
Originally stated as “Work expands so as to fill the time available
for its completion,” this law has wide implications for projects
 Constantine's Law: “A fool with a tool is still a fool.”
The problem with providing tools to all and sundry is that if you
give a man a hammer, everything starts to look like a nail.

 Graham's Law: “If they know nothing of what you are

doing, they suspect you are doing nothing.” It is widely
acknowledged that about 90% of a project manager's time is spent
in communications, yet it is one of the simplest, most overlooked
items in a typical project plan. In most cases, the communications
management plan should be the first project management
deliverable created after the charter, since it guides our
interactions with all project stakeholders for planning and the rest
of the project life cycle.

 Murphy's Law mentions "What can go wrong will go wrong". If

the project has started without a proper project plan, it is going to
be failed. If the project sponsor is half hearted with the project, the
chance of project success is low.
 O'Brochta's Law: “Project management is about applying common
sense with uncommon discipline.” Many people outside as well as
those new to the field of project management believe it to be a highly
technical, mathematically laden enterprise.

 Kinser's Law: “About the time you finish doing something, you
know enough to start.”