Prasana Chandra: Projects-Planning Analysis, Selection, Implementation & .. Prasanna Chandra: Financial Management, Tata McGraw Hill, New Delhi Ed. prasanna chandra 7th edition solutions pdf download projects 7/e, prasanna chandra, . +. project management – ebook download as pdf ronaldweinland.info), text ronaldweinland.info ). prasanna chandra pdf free download - project management by prasanna chandra pdf free download these projects are designed with the aim.
|Language:||English, Spanish, Indonesian|
|Genre:||Children & Youth|
|ePub File Size:||20.80 MB|
|PDF File Size:||13.74 MB|
|Distribution:||Free* [*Register to download]|
Projects presents the entire gamut of capital budgeting. The book discusses the key principles and techniques for evaluating capital. Tata McGraw-Hill Education, Apr 3, - Strategic planning - pages. ˜Dr Prasanna Chandra, MBA and PhD in Finance, is Director of Centre for Financial Management (CFM), Bangalore. He has over four decades of teaching experience in postgraduate and executive education. Projects - Kindle edition by PRASANNA CHANDRA. Download it once and read it on your Kindle device, PC, phones or tablets. Use features like bookmarks.
Financial Analysis and Planning Chapter 4. Analysis of Financial Statements Chapter 5. Fundamental Valuation Concepts Chapter 6. The Time Value of Money Chapter 7. Valuation of Bonds and Stocks Chapter 8. Risk and Return Chapter 9.
Project management Project management is an existing new profession which receives much attention in these days. It is concerned with the management of resources successfully to complete the project, the resources being time, money, materials and equipment and the most expensive resources of all- namely the human resources. Project management is concerned with achieving a specific goal in a given time using resources available for that period only. Project management can mean different thing to different people.
Project management as regard ongoing project within a company refers the art of creating that illusion that any outcome is the result of a series of predetermined, deliberate acts when, in fact, it was dumb luck It is designed to make better use of existing resources by getting work to flow horizontally as will as, vertically within a company. An overview definition of project management is the planning, organizing, directing and controlling company resources for a relatively short term objective that has been established to complete specific goals and objective.
Further more, project management utilizes the system approach to management by having function personnel assigned to a specific project Project Management has been evolved as a distinct discipline ever since the Second World War.
Though it is special discipline it got elevated only in the recent times, it has been in practice ever since the times of construction activities in this world. Project management resembles functional management in all aspects for all practical purposes with a little difference.
It is concerned with the management To understand the project management one must first understand the basic concepts and different approaches to the study of management. An overview of different management approaches with specific emphasis on System approach to management approaches with specific emphasis on System approach to management and its relevance to project management, brief mention about the steps in project management, benefits and limitation of project management, and also an outline about effective project management are discussed in this lesson.
Thus, the project management is designed to manage or control company resources on a given activity, within time, within cost and within performance. This has been depicted in the following diagram. Thus, the successful project management can be defined as the process of achieving the project objectives within the cost budget , at the desired performance and within the allocated time.
Development of a Project system The three major groups of management theorists — the structuralists, the functionalists and the behavioruists — differ some what on how the project The structuralists argue that the project manager, as a unifying agent, integrates the parochial interests of autonomous organizational elements towards a common objective through the formation of some standard organization instead of functional or product departmentalization.
The funtionalists argue that project management is in reality simply the application of the systems concept to organizational problems.
They visualize integration into a separate organizational system of activities related to particular projects or programmes, Management science techniques, computer simulation approaches and information decision systems are just a few of the tools that will make it possible for management to visualize the firm as a total system.
The behaviouralists see the task force as organized around problems not products, programmes, projects or tasks arranged in an organic rather than a mechanical model in which the executive becomes the link pin or coordinator but human speaking the diverse languages or research and who has skills to realay information and mediate between groups.
People will be differentiated not vertically according to rank and status but flexibly and functionally according to skill and professional training and replacing bureaucracy as we know it. Components of a Project Management System The vital components of a project from the systems perspective are: The fundamental rationale of a system that must be accomplished. A sine qua non or a fundamental and irreducible constident of a whole system that may even satisfy the objective to some extent.
A demarcation point which describes the frontiers of a system within which the alternatives must move and devote their resources. It can be inferred that the basic theories and philosophies, governing the age-old corps and projects had a stormy attack by the systems approach to management. Owing to the fact that project management is a subset of total management cult, it would be comforting oneself to describe the principles of general systems theory. The general systems approach can be squared with a Systems theory attempts to strike at problems with a holistic view rather than through and analysis of the individual components.
Grouping work into packages which acquires the properties of a project. This means that the works so grounded are related on each other, contribute to the same goals and can be bound by definite time, cost and performance targets. Entrusting the whole project to a single responsibility centre known as the project manager, for coordinating directing and controlling the project.
Supporting and servicing the project internally within the organization by matrixing or through total projectisation, and Building up commitment through negotiations, coordinating and direceing towards goals through schedules, budgets and contracts.
Ensuring adherence through negotiations, coordinating and directing towards goals through schedules, budgets and contracts. Defining what is to be done, maintaining its integrity and ensuring that it is done and performed as desired, within time and cost budgets fixed for it through a modular work approach, using organizational and extra-organizational resources is what is project management.
The project management environment in India, is very different from any other country. There are many problems which are peculiar to our country and these are experienced by all those who are concerned in the execution of both small and big projects. One has to aware of these problems in order to be able to cope with the same for successful implementation of a project.
The most important problem is lack of mutual trust and respect amongst the participating agencies: When consultants are not appointed, projects are likely to have congenial weakness such as wrong selection of technology, wrong site, high risk element, etc. Sometimes the owner may appoint a consultant for a nominal fee and ask him to These reports often do not reflect reality as they are made without any in-depths study, and if cleared, would give birth to defective projects.
However, accreditation of consultants may not set everything right. A site may often be selected purely on personal rather than on techno-economic considerations.
The same may happen with the selection of technology or even with the selection of the consultant. It is often suggested that besides technical and financial appraisal of a project the financial institutions should appraise the entrepreneur himself.
It is also suggested that the financial institutions should introduce an on-going audit system to prevent diversion of funds and other forms of financial irregularities. Sometimes a promoter may intentionally underestimate the project cost with the intention of reducing his contribution.
This would inevitably lead to cost overrun which normally the financial institutions are expected to finance. A project, thus faces a fund crisis leading to extension of project completion time. With the extension of the project schedule further fund problems occur. Financing cost and inflation overtake the revised cost estimate. Since contingency provisions are too inadequate to meet the inflationary conditions of the economy, institutions have to provide further funds.
But this again is not easily sanctioned. Most vendors and contractors, do not trust the owner regarding payment. At the very first sign of delay in payment, they start slackening. They cannot also be expected to be too enthusiastic about a project where fund problems are foreseen. A vendor, in such circumstance, may not start the work at all.
This not only delays the project but sours the relationship between the owner and the vendor. Over the years, a number of projects have been affected by enormous increase in prices of cement, steel and transport and energy costs.
These are noncontrollable costs as far as the owner is concerned and, therefore, the owner looks towards the financial institutions for relief.
But the overruns even in such cases do not get automatically sanctioned as the financial institutions do not trust the promoter and would first like to be satisfied about the reasons for overrun. Financial institutions often hesitate to disburse their term loans unless the promoters bring their entire contribution. Sometimes they withdraw their commitments due to temporary resource constraint, or when the find a project facing serious technical problems.
Thus, due to financial insecurity some projects cannot progress as desired and end up with huge time and cost overruns. The problems discussed above can broadly be grouped into four classes of environmental problems: As discussed before, if these problems are not tackled, time and cost overruns cannot be stopped.
Yet management of environment is beyond the scope of project management. There is no point, therefore, in discussing these problems in any further detail as they are beyond the scope of this book. While one cannot change the environment for the duration of a project, one can definitely project oneself from its adverse influences adverse influences. This can be done by creating a strong shield which will not only resist the adverse effect of the environment but also influence the environment marginally, at least, along the boundary.
This is referred to as boundary management. A project can shield itself effectively against the environment only if it engages good agencies, used good system and has adequate funds to meet the requirements of the project. Good system and good agencies will require good funds. However, the funds must be used properly otherwise a project cannot be completed at least cost which is the ultimate criteria for measuring the efficiency of project management.
Unfortunately, at the moment, we are unable to provide such a shield to all our projects that must be the only reason for our poor performance in the execution of the project. Projects in India have to be executed in a highly unfavorable environment but project management must cope with the situation.
It has been suggested that project must be insulated adverse environmental influences by mobilizing good agencies, good system and all adequate funds. Benefits of project management Project management helps to avail the following benefits: Identification of functional responsibilities to ensure that all activities are accounted for regardless of personnel turnover. Obstacles in project management To enjoy the various benefits of project management given above, the following obstacles be overcome carefully.
It has got elevation the recent times. Novelty is the hallmark of every project, hence it should exhibit fascination and dynamism.
This requires professional approach in conceiving, implementing and controlling projects. Though the functional management and project management are related, the degree of professional approach is highly essential for the efficient management of project. The project management is mainly driven by intellectual operation and skilled and mechanical operations. Project management is covered by the matrix form of organization structure where a roles are defined according to a combination rather than functional specialization.
Only managers with sufficient spirit and dynamism can withstand the over whelmin dizziness in these incessant operations. Hence, the project management requires sound expertise and exposure, which may not be possessed by the project promoter. So they have to resort the assistance from projects consultants and project managers.
A brief description about the role of project manager and need functions of project consultants are given below. Project Manager and his role This is to signify a person who has the overall control of the project and shoulders responsibilities for its execution and performance.
Therefore, he is thoroughly involved in planning the work and monitoring, directing and leading the participants and seeks to reach the project goal in time-cost-quality The project manager is either a specialist or having predominantly technical background with sufficient experience, exposure, expertise on multifaceted, multidimensional and multi disciplinary project.
It is well evident from the monumental constructions and project that have been around us since heydays, that the role of a project manager is quite distinct and demands an all round performance.
A project manager is always found shard in the enternal circle of doing, learnig and changing. Only managers with sufficient spirit and dynamism can with stand the overwhelming dizziness in these incessant operations.
An ideal candidate for project managership should have some prominent personal characteristics as out lined by R Archibald.
Project Consultant For any developing country, project management hols the key for development. Without efficient project management neither cost control nor time The basis ingredient of successful project management is a happy integration of three factor, appropriate estimate, competent contractor and effective project management. The other important ingredient of successful project management is an effective management team.
Consultant provide guidance as well as direction to the projects. From the formulation stage to the completion and post project evaluation stage, consultants services are essential ant are also available. Infect, the consultant is the part of the project management team, though as a paid member on contractual terms and conditions.
When a project is taken up for execution, the first task would be to assess the requirements of the service of an outside consultant or the in-house expertise available would be sufficient for the project. Need of consultants Need of consultant arises: Consultants may be of: This department looks after the work of detailed engineering , drawings and preparation of technical specifications, etc.
An office order shall be issued assigning the jobs along with scope of work, time schedule and job responsibilities to carried out. When the jobs cannot be done my the in-house consultants, the appointment of outside consultants would become unavoidable. While assigning jobs to the outside consultants the following steps should carried out effectivel: Job of consultants The functions of a project management consultant have been identified as 1 Assisting the agency in appropriate site investigation and sourcing of materials.
The project management consultant has to give periodic reports to the client on the progress, trend and completion date, likely slippage in time, adequacy of resources with the contractor and quality awareness of the contractor, and recommend measures for better control and management, including additional input to correct slippages in future.
If it is necessary, they can also recommend termination of a contractor, after examining the legal implications. In India, engaging project management consultants for selection of contractors and supervision of work is somewhat new. The project management consultant concept makes available for project management the latest developments in technical, engineering, management and information fields.
Main jobs of the consultants are: Provide pre and post commissioning services. Many firms in public sector as well s in private sector have come up in have consultancy services. A few well known consultancy firms are: This conceptual knowledge will certainly helps you to know about the features of project and project managements, which is an emerging unique discipline. And this chapter has also explained the various stages of project life cycle, which helps the project manager to ascertain the strength and weakness of any project at any point of time.
Explain the significance of project approach for the economic development of the country. Give an outline about the project opportunities available in different sectors of the economy. Describe the various resource potentials of out country. Explain the latest trend in the infra-structural project in India.
Give a brief note about the various on-going social-welfare sector projects. Explain the role of project manager in successfully administering a project Describe the need and functions of project consultants.
Hence, the identification of investment opportunities projects calls for understanding he environment in which one operates, sensitivity to emerging investments possibilities, imaginative analysis of a variety of factors and also chance luck.
This chapter is concerned with scouting and screening of project ideas, steps in the project identification process and also consideration involved in identifying the new projects by an existing company. Therefore, he has to first search for a sound of workable business idea and give a practical shape to his idea. While doing so, the entrepreneur has to tackle the various problems from time to time to achiever the ultimate success.
Since the good project ideas are elusive, a variety of sources should be trapped to stimulate the generation of project ideas. Analysis the performance of existing industries A study of existing industries in terms of their profitability and capacity utilization is helpful.
The analysis of profitability and break even level of various industries indicates promising investment opportunities. Opportunities which are profitable and relatively risk free.
An examination of capacity utilization of various industries provides information about the potential for further investment.
Such a study becomes more useful if it is regionwise, particularly for products which have high transportation costs. Examine the inputs and outputs of industries An analysis of the inputs required for various industries may throw up project ideas. A study of the output structure of existing industries may reveal opportunities for further processing of output or even processing of waste Examine imports and exports An analysis of import statistics for a period of fie to seven years is helpful in understanding the trend of imports of various goods and the potential for import substitution.
Indigenous manufacture of goods currently imported is advantages for several reasons: It improves the balances of payments situations It provides market for supporting industries and services It generates employment Likewise, an examination of export statistics is useful in learning about the exports possibilities of various products.
Plan outlays and government guidelines The governments plays a very important role in out economy. Its proposed outlay in different sector provides useful pointers toward investment opportunities. They indicate the potential demand for goods and service required by different sectors.
Suggestions of financial institutions and developmental agencies: In a bid to promote development of industries in their respective states, state financial corporations state industrial development corporations and other developmental bodies conduct studies, prepare feasibility reports and offer suggestions to potential entrepreneur.
The suggestions of these bodies are helpful in identifying promising projects.
Investigate local materials and resources A search for project ideas may begin with an investigation into local resources and skills, various ways of adding value to locally available materials may be examined.
Similarly, the skills of local artisans may suggest products thay may be profitably produced and marketed. Analysing economic and social trends A study of economic and social trends is helpful in projecting demand for various goods and services. Changing economic conditions provide new business opportunities. A great awareness of the value of time is dawning on the public.
Hence the demand for time saving products like prepared food items, ovens and powered vehicles has been increasing. Another change that we are witnessing is that the desire for leisure and recreational activities has been increasing. This has caused and growth in the market for recreational products and services Explore the possibility of reviving sick units Industrial sickness is rampant in the country.
There are over 20, units which have been characterized as sick. These units are either closed or face the prospect of closure. A significant proportion of sick units, however, can be nursed back to health by sound management, infusion of further capital and provision of complementary inputs.
Hence there is a fairly food scope for investment in this Such investments typically have a shorter gestation period because one does not have to begin from scratch. Indeed, in many cases marginal efforts would suffice to revive such units. Identify unfulfilled psychological needs For well established, multi brand product groups like bathing soaps, detergents, cosmetics and tooth pastes, the question to be asked is not whether there is an opportunity to manufacture something to satisfy an actual physical need but whether there are certain psychological needs of consumers which are presently unfulfilled.
To find whether such an opportunity exists, the technique of spectrum analysis may be followed. This analysis is done somewhat as follows. Visit to trade fairs Attending the National and International trade fairs provides an excellent opportunity to know about new products and new development. The above said sources of project ideas may be generated by the Government agencies, credit institutions, non-governmental organizations and also by public.
The Governments has largest resources and have the necessary information to generate project ideas and it plays a predominant role in this sphere. The government has the required facilities and manpower to conduct detailed studies which may lead to making investment decisions.
Banks and other financial institutions are actively involved in sharing the social responsibility of achieving the national objectives of economic development. The co-operatives and non-governmental organizations as well s individual entrepreneurs are now actively participated in identification of projects.
The awareness of involving the people or the beneficiaries in project identification is now increasing fast. Since the local people have the first hand knowledge of the potentials and problems of the area to which they belong, more realistic project identification has become possible with their involvement.
It needs no emphasis the project ideas would be generated in better manner both in the qualitative as well as quantitative terms when the knowledge and ideas of the Gove. Functionaries, people, the financial institutions and other experts are pooled together. This may be treated as It helps in elimination process. Identification and selection of a project is a scientific process.
This process is based on certain essential conditions. It may differ from project to project. The essential conditions which should be taken into consideration for identification and selection of production projects are as follows: Project should be in conformity with the economic needs of the area.
It should take into account the depriving factors which might have adverse impact. The input-output ratio should be optimum. The purpose of the project is to increase the production and employment of the area. Thus, the above said conditions will differ due to resources availability, use pattern and other relevant conditions of the area. Besides that, project should also consider certain national priorities. There are several stages of making propositions their considerations and scrutiny for their soundness.
An idea is first born, it is under incubation for sometime and subsequently is begins to take some definite shape. The project ideas to develop take almost the same course. This project identification may be broadly divided into four stages, viz. Conceptual stage — where project ideas are generated B.
Screening stages — at which unviable ideas are eliminated. Identification stage — at which viable projects are selected D. Pre-feasibility state — at which pre-feasibility studies are taking up. Conceptual stage A number of project ideas may be generated either by those officials or nonofficials and entrepreneurs individually or collectively who are conversant with the area.
In this context, one has to examine the potentialities of development and the problems, needs and aspirations of the people of the concerned area. Screening stage In the second stage project ideas generated above are screened n a preliminary exercise to weed out the bad or unviable ides.
All project ideas would not pass the screening test. Some project ideas may be imaginary to warrant any serious consideration. This study is necessarily preliminary and the broad one and has a limited objective of providing planners with a choice of projects from which they can make a selection. Pre feasibility study and these can be differentiated opportunity study and a detailed feasibility study and these can be differentiated mainly on the basis of information required for respective stages.
This process f eliminating the irrelevant and unviable ideas is called screening of project ideas. It can be done with the help of testing the following conditions of the propositions. Compatibility with the promoter b. Consistency with governmental priorities c. Availability of inputs d. Adequacy of market e.
Reasonableness of cost f. Acceptability of risk level etc. The project idea must be compatible wit interest personality and resources of the entrepreneur. It should be accessible to him and also it offers him the prospects of rapid growth and high return on invested capital. The project idea must satisfy or go along with the governmental priorities, National goals and governmental regulatory framework. No Contrary environmental effects to governmental regulations Easily accommodation foreign exchange requirements No difficulty in obtaining license.
The resources and inputs required for the project must be reasonably assured. This feature of the project can be assessed with the help of determining the following points relating to a project. To judge the adequacy of market the following factors have to be examined. The cost structure of the proposed project must enable it to realize and acceptable profit with a competitive price.
The following cost factors must be carefully considered to design a viable cost structure. Cost of material inputs, labour costs, factory overheads.
General administration expenses, selling and distribution costs. Service costs, economics of scale etc. Acceptability of risk level is another factor which helps to screen the project ideas and hence determine the desirability of a project. Without knowing the basic information relating to socioeconomic conditions of the area, it is difficult to draw a suitable project for the area.
Development needs and potentials vary from area to area. For specific area, before drawing a project, local condition and other relevant factors must be taken into consideration. Most of the project fails because they were not based on local problems.
Assumptions based on macro level information may fail to watch at micro level. Survey is a technique to unearth the hidden information which are vital to identify the basic requisites of project i.
It also helps in making right choice between different alternatives. Secondly it presents lot of information to be used as bench mark information which will help at the later stage for evaluation of the project.
While doing so, the existing company has to make a more intensive analysis of its resources and environment and conceive of projects on the basis of its existing activities. This analysis evaluate all these four characteristics of existing company. A brief summary of the points required for SWOT analysis is given below: Availability of internal financial reasons for new projects after taking into account the need for replacement expenditure, increase in working capital, repayments of borrowings and dividend payments.
Capability of raising external financial resources Availability of production facilities Technological capabilities of the company Availability of different sources of raw materials and its utilization Availibility of infrastructural facilities Cost structure and profit margins of the company Distribution network of the company Market share of the company Capability of top management of the company State of industrial relations in the company Impact of corporate laws on the growth of the company especially MRTP ACT etc.
These may include expansion of the capacity of existing product range, vertical integration, diversification in related areas and mergers.
It also explains to you the various sources from which the project ideas can be generated and how one should select the project ides. Sold by Repro Books and ships from site Fulfillment. Ships from and sold by Shilpa books. Audible Download Audio Books. Showing of 2 reviews. Write a product review. Customers who bought this item also bought. To get the free app, enter mobile phone number. Written by a renowned finance educator Prasanna Chandra, the book in its seventh edition, has acquired vast readership among students and practitioners over a period of almost three decades.
Share your thoughts with other customers. See all free Kindle reading apps. Your recently viewed items and featured recommendations. To get the free app, enter mobile phone number. Written by a renowned finance educator Prasanna Chandra, the book in its seventh edition, has acquired vast readership among students and practitioners over a period of almost three decades.
Share your thoughts with other customers. See all free Kindle reading apps. Your recently viewed items and featured recommendations. It is fine to download as it covers practical aspect. Visit our Help Pages. Page 1 of 1 Start over Page manage,ent of 1. Project and Infrastructure Finance: Add all three to Cart. Highlights of the seventh edition: site Prime Music Stream millions of songs, ad-free. Further, it suggests ways of improving project appraisal and capital budgeting practices, and also describes and evaluates business practices in various areas.