1 What is project explain various classification of project

A project is collection of small unit working together to complete a task. A project need
research and development and based on these report we create a product which is in budget,
project is managed by a person or group.

Classification

1. Quantifiable and Non-Quantifiable Projects : Project related to industrial development,

power generation, mineral development etc. are forming part of quantifiable projects, while
projects for health, education, welfare and defense etc. come under the category of non-
quantifiable projects.

2. Sectoral Projects: a project may fall in any one of the following sectors
(i) Agriculture and Allied Sector
(ii) irrigation and Power Sector
(iii) Industry and Mining Sector
(iv) Transport and Communication Sector

3. Techno-Economic Projects : This type of classification clearly the investment project as is

involve capital intensive or human or resources labor intensive are involved depending in
project upon development. The size of investment forms the basis for classification of projects.
Projects may thus be classified as large-scale, medium-scale and small scale projects depending
upon the investment

4. Others : Some other service oriented projects can be classified as follows :

(i) Welfare projects
(ii) Service projects
(iii)Research and development project
(iv) Educational project etc
 2 Explain project identification, what are internal and external constraint involved in it

Project identification is concerned with the collection of data, compilation and analysis of data
for the purpose of identifying possible opportunities for investment and development. So
project identification is finding out business opportunities which are feasible and promising.
The constraints in a project is that they are the limitations or restrictions that can affect the
successful
completion of a project. Constraints can be external or internal, External constraints are those
that are imposed on the project from outside sources, Internal constraints are those that are
imposed by the
project team.

Internal Constraint
Scope
Project scope refers to a project’s magnitude in terms of quality, detail, and deliverables.
because as the project scope grows, the project will require more time and money to complete.
You can prevent scope creep by creating detailed project plans
Cost
Cost constraints include the project budget as a whole and anything of financial value required
for your project. Items that may be a cost constraint include:
 Project cost
 Team member salaries
 Cost of equipment
 Material costs
Time
Time management is essential for project success, and there are various time constraints you’ll
face during each phase of your project. When you try to increase your project timeline, there
will be consequences like extended deadlines, adjustments to the team calendar.

External Constrain
Economic
Economic constraints relate to the changing global or local economic environment as a whole.
They can also refer to competitor strategies, recessions, upturns, or anything else having to do
with the overall economic climate.
 Social
Social constraints include the likes of customer satisfaction and public opinions of your brand,
policies, and products.

Technological
Technology can refer to any equipment or software you use to get your work done. Changing
technology can lead to new opportunities. It can also leave you constrained if you use outdated
technology.

3 Explain project life cycle and enumerate various phases

The project management lifecycle is a step-by-step framework of best practices used to monitor a
project from its beginning to its end. It provides project managers with a structured way to
create, execute, and finish a project.

The Project Management Lifecycle

1. Initiating
In the initiation phase, you will define the project. You will sort out the project goals, scope, and
resources of the project and what roles are needed on the team. Clarifying what stakeholders
expect out of the project, and what exactly the project is aiming to achieve (and why) will give the
project and team clear direction.
Some steps in the initiation phase include:
 Communicating with stakeholders to understand the purpose and desired outcomes of the
project
 Confirming team size and roles required

2. Planning
In the planning phase, you will determine the steps to actually achieve the project goals—the
“how” of completing a project.
You will establish budgets, timelines, milestones, source materials, and necessary documents.
This step also involves calculating and predicting risk, establishing change processes in place, and
outlining communication protocols.
The planning phase can include the following steps:
 Deciding on milestones that lead up to goal completion
 Assessing and managing risk by creating a risk register
 3. Execute and complete tasks
Executing a project means putting your plan into action and keeping the team on track. Generally,
this means tracking and measuring progress, managing quality, mitigating risk, managing the
budget, and using data to inform your decisions.
Specific steps might include:
 Keeping team members motivated and on task
 Incorporating changes via change requests

4. Close projects
In the closing phase of the project management lifecycle, you will conclude project activities, turn
the finished product or service over to its new owners and assess the things that went well and
did not go so well. It will also be a time to celebrate your hard work.
Steps in the closing phase can include:

 Communicating to stakeholders at the end of the project and providing an impact report

 Communicating with the new owners of a project

4 Define project formulation various factor on which it is depends

Project formulation can be defined as the systematic. Step-by-step development of a project idea
for the objective of investment decision. In fact it is a careful and scientific mechanism which
enables the entrepreneur to achieve the project objective with the minimum expenditure and
adequate resources.
ELEMENTS OF PROJECT FORMULATION
1. Feasibility Analysis
2. Techno-Economic Analysis
3. Project Design and Network Analysis.
4. Input Analysis
5. Financial Analysis
6. Social Cost-Benefit Analysis
7. Pre-investment Appraisal

1. Feasibility Analysis : This is very first stage in project formulation. It is done by the
entrepreneur in order to evaluate the feasibility of the project. As it is examined in the context of
internal and external constraints, the entrepreneur may face three alternatives. First the project
idea seems to be feasible, second it is not feasible and third is a state of confusion with
inadequate data.
2. Techno-Economic Analysis : As the name indicates this analysis is concerned with the
technology selected and the economy of the project idea. In this step, estimation of project
demand potential and the choice of optimal technology is made. It requires sufficient market
survey for successful completion of task. Market analysis is built-in step of this process. The size
of the project and technology used depend very much on the demand potential.

3. Project Design and Network-Analysis : This defines individual activities and their
interrelationship with each other which are being performed to constitute the whole project. This
identifies a detailed work plan including all events with time allocation and presented in a
network drawing. Network analysis is carried out to identify the optimal course of action, so as
to execute the project within the minimum time keeping in view the available resources.

4. Input Analysis : Inputs include all materials as well as the human resources. Both recurring
and non-recurring resources must be considered. Input requirements constitute the basis of cost
estimates of the project and are, therefore, necessary for financial analysis or cost-benefit
analysis of any project.

5. Financial Analysis : Finance may be considered as the life-blood of a project. Financial

aspects of an investment proposition have a significant impact on the acceptability or rejection of
a project. Financial analysis mainly involves estimating the project costs, estimation of the
operating cost of project and the fund requirements. It seeks to find out whether the project will
generate revenues to realise the ultimate objective for which it is being designed.

6. Cost-Benefit Analysis : A cost-benefit analysis (CBA)—also called a benefit-cost analysis—is a

decision-making tool that helps you choose which actions are worth pursuing. It provides a
quantitative view of an issue, so you can make decisions based on evidence rather than opinion
or bias. CBA is particularly useful in project planning; it compares the financial feasibility of new
projects against their potential returns.

7. Pre-investment Appraisal : The results of all above defined analysis and steps i.e., the
feasibility analysis, the techno-economic analysis, the design and network analysis, the input
analysis, financial analysis and the social cost-benefit analysis are consolidated in this step to
provide a final and formal shape to the project.
5 What is investment analysis describe ratio analysis and capital budgeting as tool used for
investment analysis

Investment analysis
Investment analysis is a process that helps evaluate investments, industry trends, and economic
cycles. Understanding investment analysis methods helps you identify certain investment
opportunities, anticipate future performance, and build a solid portfolio management strategy.
It also aims at reducing and managing risk so that investors can make decisions regarding
whether they should put their money in it to meet their financial needs and goals.

Tools for investment analysis

1 Ratio Analysis
Ratio analysis evaluates a company’s profitability, liquidity, solvency, and operational efficiency
using information from its financial statements. It gives insights into a company’s financial
performance over time, against an industry benchmark, or compared to another business.
Each ratio provides information about a different aspect of a company’s financial health. Used
in isolation, they can be misleading. But together, they are a powerful tool for identifying
strengths and pitfalls.
Categories of Financial Ratios
Profitability Ratios
Activity Ratios
Liquidity Ratios
Valuation Ratios

2 Capital budgeting
This concerns the planning process used to determine whether an organization's long term
capital investments such as new machinery, replacement of machinery, new plants, new
products, and research development projects are worth the funding of cash through the
firm's capitalization structures (debt, equity or retained earnings). It is the process of allocating
resources for major capital, or investment, expenditures.
Capital budgeting analysis methods
Payback Period
Discounted Payback Period
Net Present Value
Profitability Index
6 Decide various factor to be considered while deciding the plant location

Plant location is an important decision for businesses as it can have a significant impact on the
success of the organization. The process of plant location involves analyzing various factors and
selecting a site that is optimal for the organization’s operations. Some of the key factors that
are considered in plant location include:

Proximity to customers: The location of the plant should be in close proximity to the customers
it serves to minimize transportation costs and improve customer service.

Availability of labor: The availability of a skilled and unskilled labor force is an important factor
to consider when selecting a plant location. The labor force should be adequate in size and have
the required skills to meet the production needs of the organization.

Availability of raw materials: The plant location should be close to the source of raw materials
to reduce transportation costs and ensure a reliable supply of inputs. If the raw materials are
perishable, then it is essential to consider the location of the plant with respect to the shelf life
of the raw materials.

Transportation infrastructure: The plant location should have good transportation

infrastructure, including access to highways, railroads, ports, and airports. This helps to reduce
transportation costs, improve logistics, and increase access to markets.

Legal and regulatory environment: The legal and regulatory environment in the plant location
should be favorable to the organization’s operations. This includes factors such as taxes, laws,
regulations, and policies that can impact the organization’s ability to operate effectively.

Availability of utilities: The plant location should have access to reliable and affordable utilities,
including water, electricity, and gas. This helps to reduce operating costs and ensure
uninterrupted production.

Quality of life: The plant location should be in a desirable location with a high quality of life to
attract and retain a skilled workforce.

Once these factors have been analyzed, the organization can use various decision-making
techniques to select the optimal plant location.
7 Explain in detail the product design process

A successful product is one that fills a gap in the target market, helps to meet business
objectives, and solves a specific problem for the people who will use it.
The product might be a physical product—like a selfie stick, a kettle, or an electric toothbrush—
or a digital product, like a mobile app, an e-learning platform, or a video game.

The 5 steps in the product design process

 Research

 Ideation

 Design

 Testing and iteration

 Development and launch

Research : The research phase is critical for understanding the context around the product: the
market it’s competing in, the users it will serve, and the business goals it should fulfill. All of this
context shapes the direction the product will take, ensuring that it’s something the target
audience will actually want and need—and that it aligns with the business’s strategic objectives

Ideation: During the research phase, you defined the user problem you want to solve. Now the
goal is to come up with potential solutions to that problem. This step is closely modeled on
design thinking, which views ideation as a strictly judgment-free zone. Designers are
encouraged to ideate collaboratively, to think outside the box, and to focus on quantity over
quality.
Design : During the design phase, product ideas are developed into more refined concepts. The
focus turns to how the product might look and function, as well as the materials and / or
technologies that will be used to build the product. This step in the process varies considerably
depending on the product in question.

Testing and iteration : Before you send the product off to be built or developed, it’s essential to
test your prototypes, gather feedback, and address any usability issues or general design
flaws. The testing phase should involve real users and internal stakeholders. Asking users to
complete certain tasks with the product prototype and evaluating through observation how
easy it is to interact with the product in its current form.

Development and launch : This step requires close collaboration with developers or
manufacturers, depending on the nature of the product. The product designer shares all the
technical specifications, documentation, and design assets necessary for bringing the product to
life. Presenting final designs to key stakeholders, including developers/manufacturers.
Compiling and sharing relevant design assets such as prototypes, style guides, and technical
specs.

8 Define quality control, explain various methods or tools used in quality control process

Quality control is an important component of quality management that is used to detect and
address defects, deviations, or variations in products or services to ensure that they conform to
established specifications and are of consistent and acceptable quality. Quality control (QC) is a
systematic process and set of activities within a company or organization that ensures that the
company’s products or services meet certain predefined quality criteria and standards.
QC tools are used to identify, analyze and resolve problems, The QC tools have been
categorized into the following categories

 Histograms

 Flowchart

 Cause and Effect Diagram

 Check sheets

Histograms : A histogram is a tool for summarizing, analyzing, and displaying data. It provides
the user with a graphical representation of the amount of variation found in a set of data.
Histograms sort observations or data points, which are measurable data, into categories and
describe the frequency of the data found in each category.

Flowchart : A flowchart is a type of diagram that represents a workflow or process. A flowchart

can also be defined as a diagrammatic representation of an algorithm, a step-by-step approach
to solving a task. The flowchart shows the steps as boxes of various kinds, and their order by
connecting the boxes with arrows.

Cause and Effect Diagram : A cause and effect diagram examines why something happened or
might happen by organizing potential causes into smaller categories. It can also be useful for
showing relationships between contributing factors, it is often referred to as a fishbone
diagram. One of the reasons cause & effect diagrams are also called fishbone diagrams is
because the completed diagram ends up looking like a fish's skeleton.

Check sheets : Check sheets can be used to collect quantitative or qualitative data. When used
to collect quantitative data, they can be called a tally sheet. A check sheet collects data in the
form of check or tally marks that indicate how many times a particular value has occurred,
allowing you to quickly zero in on defects or errors within your process or product, defect
patterns, and even causes of specific defects.
 9 Explain the stages of growth in a business enterprise

Scaling a business is a weighty goal, and fledgling small businesses face challenges that are
determined by a range of variables—business and industry type, leadership and management
capability, business size, technology and infrastructure capability, and market volatility, to
name a few.

And yet, market analysts have identified some key patterns in the growth phase of small
businesses of all types—patterns that, if studied and anticipated, can give you a roadmap to the
growth stages of your current or future small business venture.

The 5 stages of business growth

From a neighborhood cloth startup with a small two-person staff to a $15 million business,
small businesses of all types experience the same stages of business growth. These growth
phases are:

 Establish existence: This is the first phase of a business and involves delivering the initial
product or service offering, securing customers and clients, and consistently delivering the
product or service.

 Survive to thrive: In this phase of company growth, the business has established that it has a
viable product or service. Its focus has shifted to retaining the existing customer base and
building consistency in its product or service offering.

 Build on success: Businesses at this stage face a new line of decision-making. They use
existing clientele and accomplishments to continue to scale up or direct the company to a
sustainable level with new personnel that allows more hands-off ownership.

 Identify expansion: In this phase, companies look for ways to rapidly expand and finance
that expansion.

 Reach maturity: Companies in the maturity phase have managerial talent, well-developed
systems, and substantial financial resources—their chief concern is how to manage their
financial gains and maintain their entrepreneurial spirit.
10 Explain various type of business growth strategies

There are many ways to grow a business. Which way you choose to expand largely depends on
your ambition, your reasons for growth, and the opportunities and resources
available. However, two crucial factors for choosing a growth strategy exist. They are:

 products - what you currently offer, and what you'd like to offer in the future
 markets - where you currently sell, and where you'd like to sell in the future
Based on these factors, strategic tools - suggest four main types of business growth strategies.

 market penetration
 product development
 market development
 diversification
Market penetration strategy, you try to sell more of the same things to the same market. The
risks are usually low as you focus on capturing a bigger share of your current market with the
products you already have.

Product development strategy, you are introducing a new product into your existing market.
You're effectively selling something different to the same customer, potentially encountering
greater risks.

Market development strategy, where you try to sell an existing product in a brand new market.
For example, you may want to segment your existing market or reposition your product in it, or
target an entirely different geographical area.

Diversification strategy, you are aiming to sell completely different goods or services to
completely different customers. This is typically the riskiest of options - it requires both product
and market development.
11 Define sub-contracting system, what are advantages and disadvantages

Your business may need additional resources to carry out specific or specialist tasks. You may
want to use the services of a contractor or subcontractor for this, although it is important to
weigh up the advantages against the disadvantages of contracting and subcontracting.

Advantages of subcontracting
Flexibility
You can hire a contractor and/or subcontractor when you need more flexibility with a specific
job or task.

Short-term specialist expertise

You can use a subcontractor for one-off jobs and jobs requiring specialist expertise or fast
turnaround.

Focus on core business

Using contractors and/or subcontractors enables your own staff to concentrate on the core
business.

Set out the contract type and duration

You can often specify the type and duration of the contract you need for the contracted job.

Disadvantages of subcontracting
Higher costs
Contractors/subcontractors may cost your business more than the equivalent daily rate for
employing someone.

Loss of skills
By relying on contractors and/or subcontractors, your business does not acquire or develop
skills in-house.

Poor quality work

If you use a contractor that then uses a subcontractor, you have no direct control over the
quality of subcontractors' work.

No regard for business culture

Contractors and/or subcontractors may not appreciate your business culture and may lack the
motivation and commitment of your own staff.