Project Management: A Comprehensive Guide from Idea to Evaluation
Project Management: From Idea to Evaluation
Economic Problems and the Need for Projects
We face various needs with limited resources. Maslow’s Hierarchy of Needs highlights these needs, starting with physiological needs like breathing and eating, then safety, belonging, esteem, and finally self-actualization.
Limited resources, including financial, material, human, and time, necessitate prioritization. Scarcity drives the allocation of resources based on this prioritization.
Projects as Solutions
Projects can efficiently address specific needs, improve satisfaction with existing resources, or achieve the same satisfaction at a lower cost.
Project Formulation and Evaluation
Project Formulation involves gathering the necessary information to prepare project reports, often utilizing an interdisciplinary team.
Project Evaluation assesses the feasibility of a project based on defined objectives.
Key Requirements for a Project
- Consistency: Project objectives and goals must align with sectoral, regional, or enterprise needs.
- Feasibility: The project location must possess the necessary conditions and resources.
- Viability: This refers to the potential success of the project, determined through testing and analysis.
Types of Feasibility
- Technical Feasibility: Assesses the compatibility of the project’s technical requirements with its potential application.
- Economic Feasibility: Compares the project’s results with alternative projects using the same resources.
- Financial Feasibility: Evaluates the ability to secure financial resources, both internal and external, for project implementation.
Project Types
- Employer Project: Focuses on implementing a new enterprise.
- Amplification Project: Aims to expand the productive capacity of an existing operation.
- Replacement Project: Replaces existing processes or technologies within a company.
- Acquisition Project: Involves purchasing a company by an investor.
Project Resources
Project resources have a monetary impact on implementation.
Investment Resources
- Land and buildings
- Machinery and equipment
- Facilities
- Furniture and vehicles
- Launch costs and patent royalties
- Working capital
Operating Resources
- Expenses for raw materials
- Direct labor payments
- Manufacturing overhead costs
- Sales expenses
Project Life Cycle
Pre-Investment
- Ideas: Identifying a need or problem that the project will address.
- Profile: Gathering basic information to determine the project’s desirability.
- Pre-Feasibility Study: Assessing whether the idea can be transformed into a viable project.
- Feasibility Study: Defining the project with precision based on pre-feasibility information.
Investment
Acquiring the necessary resources to initiate the project.
Operation
The production and commercialization phase of the project.
Sources of Project Ideas
- Kuriloff’s Classification: Investment, creativity, innovation, personal interest, observation of efficiencies or deficiencies, discovering new uses for existing things, and job dissatisfaction.
- Drake’s Rankings: The unexpected, the incongruous, process necessities, changes in industry structure, demographics, shifts in perception, and new knowledge.
Legal and Regulatory Considerations
Macroeconomic Environment
Projects exist within a larger economic context, influenced by macroeconomic cycles and variables like interest rates, inflation, unemployment, and GDP growth.
Microeconomic Environment
Projects are also affected by microeconomic variables such as price elasticity of demand, consumer behavior, production evolution, and factor prices.
Legal and Regulatory Framework
- Commercial Aspects: Company formation, type of company, and commercial codes.
- Tax Aspects: General and specific taxes, grants, and territorial franchises.
- Labor Aspects: Individual contracts, collective bargaining, and labor codes.
- Regulatory Aspects: Land taxes, regulatory levels, and patents.