Generation and Screening of Project Ideas-Project Management-Lecture Slides, Slides for Project Management. Tezpur University Gate

Project Management

Description: This lecture is part of lecture series on subject of Project Management at Tezpur University Gate. Instructor name is Rajkumari Vishaka. It includes: Generation, Screening, Project, Ideas, Environment, Corporate, Appraisal, Preliminary, Sources, Entrepreneur
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1

Generation and Screening of

Project Ideas

1. Generation of Ideas

2. Monitoring the Environment

3. Corporate Appraisal

4. Profit potential of Industries: Porter’s Model

5. Scouting for project ideas

6. Preliminary screening

7. Project rating index

8. Sources of positive net present value

9. On being an entrepreneur

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1. Generation of Ideas

 Stimulating the flow of ideas

 SWOT analysis

 Clear articulation of objectives

 Cost reduction

 Productivity improvement

 Increase in capacity utilization

 Improve in contribution margin

 Expansion into promising fields

 Fostering a conducive work environment

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2. Monitoring the Environment

1. Economic Sector

2. Government Sector

3. Technological Sector

4. Socio-demographic Sector

5. Competition Sector

6. Supplier Sector

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2. Monitoring the Environment

1. Economic Sector • State of the economy

• Overall rate of growth

• Growth rates of primary/secondary/tertiary sectors

• Cyclical fluctuations

• Linkage with the world economy

• Trade surplus/deficits

• Balance of payment situation

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2. Monitoring the Environment

2. Government Sector • Industrial policy

• Government programmes and policies

• Tax framework

• Subsidies, incentives and concessions

• Import and export policies

• Financing norms

• Lending conditions (FIs and CBs)

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2. Monitoring the Environment

3. Technological Sector • Emergence of new technologies

• Access to technical know-how

• Receptiveness on the part of industry

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2. Monitoring the Environment

4. Socio-demographic Sector • Population trends

• Age distribution and shifts

• Income distribution

• Educational profile

• Employment of women

• Attitudes towards consumption and investment

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2. Monitoring the Environment

5. Competition Sector • Number of firms in the industry and their market

shares

• Degree of homogeneity and differentiation among

products

• Entry barriers

• Comparison with substitutes

• Marketing policies and practices

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2. Monitoring the Environment

6. Supplier Sector • Availability and cost of raw materials and sub-

assemblies

• Availability and cost of energy

• Availability and cost of money/capital

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3. Corporate Appraisal

 Marketing and distribution

 Production and Operations

 Research and development

 Corporate resources and personnel

 Financing and accounting

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4. Profit potential of Industries:

Porter’s Model

 Five basic competitive forces

 Threat of new entrants

 Rivalry among existing firms

 Pressure from substitute products

 Bargaining power of buyers

 Bargaining power of sellers

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Forces Driving Industry Competition

The Industry

Rivalry among

existing firms

Potential Entrants

Substitutes

Suppliers Buyers

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5. Scouting for project ideas

 Analyze the performance of existing industries

 Examine the inputs and outputs of various industries

 Review imports and exports

 Study plan outlays and government guidelines

 Look at suggestions of financial institutions and

development agencies

 Investigate local materials and resources

 Analyze economic and social trends

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5. Scouting for project ideas cont’d

 Study new technological developments

 Draw clues from consumption/trends abroad

 Explore the possibility of reviving sick units

 Identify unfulfilled psychological needs

 Attend trade fairs

 Stimulate creativity for generating new product ideas

 Hope that the chance factor will favor you

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6. Preliminary screening

 Compatibility with the promoter

 Consistency with government priorities

 Availability of inputs

 Adequacy of market

 Reasonableness of cost

 Acceptability of risk level

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7. Project rating index

Construction of a Rating Index

 Identify factors relevant for project rating

 Assign weights to these factors

 Rate the project proposal on various factors (using a 5 or 7- point scale)

 For each factor, multiply the factor rating with the factor weight to get the factor score

 Add all the factor scores to get the overall project rating index

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8. Sources of positive

net present value

 Economies of scale

 Product differentiation

 Cost advantage

 Marketing reach

 Technological edge

 Government policy

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9. Being an Entrepreneur

Questions that every entrepreneur must answer

1. Are my goals well defined? • Personal aspirations

• Business sustainability and size

• Tolerance for risk

2. Do I have the right strategy? • Clear definition

• Profitability and potential for growth

• Durability and rate of growth

3. Can I execute the strategy? • Availability of resources

• Organizational infrastructure and founder’s role

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Success Traits of an Entrepreneur

 Willingness to make sacrifices

 Leadership

 Decisiveness

 Confidence in the project

 Marketing orientation

 Strong ego

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How to be a Good Leader Jack Welch

1. Leaders relentlessly upgrade their team, using

every encounter as an opportunity to evaluate,

coach and build self-confidence

2. Leaders make sure people not only see the

vision, they live and breathe it

3. Leaders get into everyone’s skin, exuding

positive energy and optimism

4. Leaders establish trust with candor,

transparency and credit

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How to be a Good Leader cont’d…

5. Leaders have the courage to make unpopular decisions and gut calls

6. Leaders probe and push with a curiosity that borders on skepticism, making sure their questions are answered with action

7. Leaders inspire risk-taking and learning by setting the example

8. Leaders celebrate

Think of yourself as a gardener, a watering can in one hand and fertilizer in the other”, Jack Welch

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Exercise on SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

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Exercise on Project Rating Index

Factor Factor Weight

Very Good

5

Good

4

Avera ge

3

Poor

2

Very Poor

1

Factor Score

Input Availability 0.25

Technical know-how 0.10

Reasonableness of cost 0.05

Adequacy of market 0.15

Complementary relationship with other projects

0.05

Stability 0.10

Dependence on firm’s strength 0.20

Consistency with govt. priorities 0.10

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