PROJECT PLANNING AND EVALUATION
BBA-304 PROJECT PLANNING AND EVALUATION
L-4 T-0 Credits –4
The basic objective of this course is to familiarize the students with the various aspects of Projects and key guidelines relevant to project planning, analysis, financing, selection, implementation and review.
UNIT I lectures:-15
Overview: Capital Investments: Importance and Difficulties, Types of Capital Investments, Phases of Capital Budgeting, Levels of Decision Making, Facets of Project Analysis, feasibility Study, Objectives of Capital Budgeting, Common Weaknesses in Capital Budgeting.
Capital Allocation Framework: Key Criteria, Elementary Investment Options, Portfolio Planning Models, Strategic Position and Action Evaluation, Diversification Debate, Investment in Capabilities, Strategic Planning and Capital Budgeting.
Financing of Projects: Capital Structure, Menu of Financing, Equity Capital , Preference Capital, Internal Accruals, Term Loans, Debentures, Working Capital Advance, Miscellaneous Sources, Raising Venture Capital, Raising Capital In International Markets.
Financial Estimates and Projections: Cost of Project, Mean of Finance, Estimates of Sales and Production, Cost of Production, Working Capital Requirement and its Financing (Simple Practical Problems), Profitability Projections, Projected Cash Flow Statement (Simple Practical Problems), Projected Balance Sheet (Simple Practical Problems), Multi Year Projections.
Market and Demand Analysis: Situational Analysis and Specification of Objectives, Collection of Secondary Information, Conduct of Market Survey, Characterization of Market, Demand Forecasting, Uncertainties in Demand Forecasting, Market Planning
Technical Analysis: Manufacturing Process/ Technology, Technical Arrangements, Material Inputs and Utilities, Product Mix, Plant Capacity, Location and Site, Machineries and Equipment, Structures and Civil Works, Environmental Aspects, Project Charts and Layouts, Schedule of Project Implementation, Need for Considering Alternatives.
Project Management: Forms of Project Organization, Project Planning, Project Control, Human Aspects of Project Management, Pre- Requisites for Successful Implementation.
Network Techniques: Development of Project Network, Time Estimation (Simple Practical Problem with EST, EFT, LST, LFT, Total Float), Determination of the Critical Path, Scheduling when Resources are limited, PERT Model, CPM Model (Simple Practical Problem of Crashing), Network Cost System.
Project Review and Administrative Aspects: Control of In- Progress Projects, Post Completion Audits, Abandonment Analysis, Administrative Aspects of Capital Budgeting, Agency Problem, Evaluating the Capital Budgeting System of an Organization.
Generation and Screening of Project Ideas: Generation of Ideas, Monitoring the Environment, Corporate Appraisal, Profit Potential of Industries, Scouting for Project Ideas, Preliminary Screening, Project Rating Index, Sources of Positive NPV, On being an Entrepreneur.
Unit IV lectures:-5
Risk Analysis- Firm Risk and Market Risk: Portfolio Related Risk Measures, Mean Variance Portfolio Construction, Portfolio Theory and Capital Budgeting, Capital Asset Pricing Model, Developing the Inputs Required for Applying CAPM, Empirical Evidence on Capital Asset Pricing Model, Capital Asset Pricing Model and Capital Budgeting.
Text Books: -
- Desai, Vasant; Project Management, Himalaya Publishing House, 2003.
- Chandra, Prasanna; Projects: Planning, Analysis, Financing, Implementation and Review, Tata McGraw Hill Publishing Company Limited, 2002 Fifth Edition.
- Nagarajan, K.; Project Management , New Age International (P) limited, Publishers, 2001.
Reference Books: -
1. Maheshwari, S.N.; Management Accounting & Financial Control, Sultan Chand & Sons, 2003 Fourteenth Edition.