project identificationhh-group 2

8/12/2019 Project Identificationhh-Group 2

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ProjectIdentification

Presented by Group 2:Aloyna DAlmeida

Sneha Abraham

Priyanka Pandit

Christina MalpanDrishya Wilfred

Carina Cardoza

Joanna Joseph

Pramila Pinto


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Introduction

The project is an important groundwork of an enterprise and is also verycrucial to the entrepreneur

It is a specific activity on which an assigned money is invested in theexpectation of returns

It has a specific starting point, a specific end point and it is intended toachieve a specific objective

To ensure that we complete at the end point, the entire project is split upinto measurable & quantifiable milestones posted with reference to some

designated dates during the execution period.

Project identification is the initial phase of the project development cycle.

It begins with the conceiving of ideas or intentions to set up a project.

These ideas are then transformed into a project.

The viability of execution & possibilities to maintain it well to deliver thedesired output/delivery


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Definition of Project

Identification?

Project identification is the first phase of a project

cycle.

It is a recurrent process for documenting, ranking

and approving candidate projects amongst several

other identified projects within an organization.

To have a successful project identification, it

should contain a clear and a matured/intuitive and

professional management arrangements.3


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Understanding how projects

come about

Understanding needs and Demands of the customers

Feasibility study

Selecting and Prioritizing projects

Cash flows & liquidity

Listing down the critical success factors for every such

project under consideration


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Understanding Needs and

Demands

Market Demandssize and nature of the

customer base

Strategic Opportunities/business drivers

Customer Requestinternal & external

customer e.g. project in backward

integration/forward integration

Technological Advancement Legal Requirement/compliance

Ecological Impacts

Social Need/commitments


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Feasibility Studies

It is done before starting a project

To Take A Final Decision about starting a

project based on ease of implementation &smooth cash flows on ROI

Feasibility studies can be conducted as

1. separate projects,

2. as Subprojects,

3. First Phase of the project


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Selecting and Prioritising

Projects

Project selection Methods

1. Mathematical Model (PERT, CPM, linear

programming)

2. Benefit Measurement Model (input-output relationshipwith or without discounted cash flow)

a. Cost benefit Analysis

b. Scoring Model - a matrix is developed giving due

weightages to diff factors that are essential for theproject. The outcome of such group of factors is an

important exercise

c. Cash flow Techniques(Payback period, Discounted

Cash flow, NPV,IRR,


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There are two major approaches to project

identification

(a) Top-down approach

(b) Bottom-up approach

Approaches to project

identification


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Projects are identified based on demands frombeyond the community.

This may include directives from:

international conventions (such as KyotoProtocol/climate change)

international institutions or NGOs that havedetermined particular priorities and thusprojects

national policy makers identifying projects thatpertain to party manifestos and/or national

plans.

Top-Down Approach


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It may be a rapid response to disasters likefloods, war outbreak because there is limitedtime and chance to consult the beneficiaries.

It can be effective in providing importantservices like education, health, water, roadsetc.

It can contribute to wider national orinternational objectives and goals and therefore potentially be part of a wider benefit

(as in the case of trans-boundary resources, such as

climate, water or others)

Advantages of Top-Down

Approach


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Does not help in modifying strongly established ideas andbeliefs of people.

Assumes external individuals know better than the

beneficiaries of the service.

Communities have little say in planning process renderingapproach devoid of human resource development.

Community develops dependency syndrome on outsideassistance and does not exploit their own potential.

The development workers (change agents) becomestumbling blocks to people-led development

tendency to impose their own biases, etc. on people.

Limitations of Top-Down

Approach


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In this approach community/beneficiariesare encouraged to identify and plan the

projects themselves with or withoutoutsiders.

Bottom-Up Approach


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Interveners accomplish more with limited resourcessince people tend to safeguard what they haveprovided for themselves.

Develops peoples capacity to identify problems andneeds and to seek possible solutions to them.

Provides opportunities of educating people.

Helps people to work as a team and develop a WEattitude - makes project progressive and sustainable.

Resources are effectively managed; dependencereduces, there is increased equity, initiative,

accountability, financial and economic discipline.

Advantages of Bottom-Up

Approach


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Not always effective for projects that require urgency toimplement

Time-consuming and requires patience and tolerance.

People sometimes dislike approach because they do notwant to take responsibility for action.

The agency using this approach is never in control andcannot guarantee the results it would want.

The priorities of communities may not fit with national orinternational priorities that seek to have a broader impact

Limitations of Bottom-Up

Approach


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1. The household (socio-economic) survey Studies social and economic situations of a given

area e.g. climate, geographical set-up, economic

activities, political set up, education system,culture, diet, social services, physical infrastructureetc.

Method is popular with the UBOS (Uganda

Bureau of Statistics). Uses questionnaires, interviews, documentation,

and direct observation.

Data is collected, processed and analyzed and

projects are then identified

Top-down approaches to

project identification


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2. Rapid appraisal Called Rapid Rural Appraisal (RRA) when

carried out in a rural areas, and Rapid Urban

Appraisal(RUA) in an urban area. Method collects and assesses data quickly

using any data collection techniques.

Primary purpose is to acquire the information in

the shortest time possible and it lowers the cost. It is rapid because investigation, assessment and

identification of projects are done at the sametime.




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Rapid appraisal uses the following datacollection techniques:

Analysis of secondary data sources

Interviews

Direct observation at site

Visualization of Resources like social

organizational maps and time seriesmaps.


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3.Needs Assessment Survey

Also referred to as situation analysis(SITAN).

It involves:- Fact finding about problems or needs in a

given area or community.

Finding out what is lacking in a given area

or community. Investigating a situation in a given area.




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NASis carried out to:

find out the problem in a given community so

as to identify the most appropriate solution(s)/project (s) to solve the problem (s) inquestion.

analyze the causes of the problems and seek

likely solutions to the problems leading toproject identification.


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1. Animation Process of stimulating people to become more

aware and conscious of problems they suffer from.

to gain confidence in their ability to deal with theseproblems and take initiatives to improve situation.

Animation makes the community better understandand be prepared to overcome its problems andtake decisions with full responsibility.

Carried out by Animators / Helpers/ Changeagents.(Internal Animatorsif they come from within thecommunity or External Animatorsif from outside.)

Bottom-up approaches to



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2.Facilitation/Community action

an attempt to assist people to get overproblems by (say) training them in certain

skills, providing them with the neededinformation e.g. market information, linkingthem up with relevant agencies andorganizations to improve access to the

needed resources etc.




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3. Participatory Appraisal

Project identification should be participatory,and should involve local communities in

identifying and prioritizing their needs.The DTPC (District Tourism PromotionCouncil) should consider the views of thecommunities during the screening and

selection of various project proposals andthe selection of the preferred proposals forimplementation.




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PRA (participatory rural appraisal) when carriedout in rural areas; and PUA (participatory urbanappraisal) when carried out in urban areas

PRA/ PUA can be described as a family ofapproaches, methods and behaviours thatenable people to express and analyze therealities of their lives and conditions, to plan forthemselves what action to take, and to monitor

and evaluate the results. The key to PRA/PUA is that the only external

involvement is in facilitation. The communitiesthemselves determine the issues, priorities and

courses of action.


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The process of project identification ends withthe formulation of a problem statement.

It takes the form of: Listing all the problems/needsin the

community/area/ organization.

Prioritizing the problems and selecting 13 core(major) problems.

Finding out the root causesof the problems.

Sitting the likely effectsof the problems on thecommunity.

Suggesting the probable solutionsto theproblems.

Identifying the (projects) from the solutions.

The problem statement


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Types of Risk in Project

Identification

1. Operational riskinternal to the organization

2. Environmental riskexternal to theorganization

3. Financial risk

4. Interest rate risk

5. Structural risk

6. Human resource risk

7. Management risk8. Technological risk

9. Social risk

10. Implementation risk


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Project Report

Project report incorporate relevant data.

Serves as a guide to management.

Record merits and demerits in allocating

resources to production.

It involves,

Technological data

Market survey Financial data

Economic data, etc.


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Technologicaldata

Labour

Raw material

Capital

goods

Technicalfeasibility

Market survey data

Demandpatterns

Supply given

Price

Marketabsorptioncapacity

Financial data

Profit andloss a/c

Balancesheet

Tax, interest,loan etc

FinancialViability

Economic data

Inputcoefficients

LabourCoefficients


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project identificationhh-group 2

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