Project Formulation (:two: Stages (:one:Feasibility Analysis:
• Examination to see whether to go in for a detailed.
investment proposal or not.
• Screening for internal and external constraints.
:two: Techno-Economic Analysis:
• Screens the idea to-Estimate of potential of
the demand for goods/services.
• Choice of optimal technology.
:three: Project Design and Network Analysis:
• It is the heart of the project entity.
• It defines the sequence of events of the
• Time is allocated for each activity.
• It is presented in a form of a network drawing.
:four: Input Analysis:
• Its assesses the input requirements during the
construction and operation of the project.
• It defines the inputs required for each activity.
• Inputs include materials, human resources.
• It evaluates the feasibility of the project from
the point of view of the availability of
:five: Financial Analysis:
• It involves estimating the project costs, operating
cost and fund requirements.
• It helps in comparing various project proposals on
a common scale.
• Analytical tools used are discounted cash flow,
cost-volume-profit relationship and ratio analysis.
• Investment decisions involve commitment of
resources in future, with a long time horizon.
:six: Cost- Benefit Analysis:
• The overall worth of a project is considered.
• The project design forms the basis of
• It considers costs that all entities have to bear
and the benefit connected to it.
:seven: Pre-investment Analysis:
• The results obtained in previous stages are
consolidated to arrive at clear conclusions.
• Helps the project-sponsoring body, the
project-implementing body and the external
consulting agencies to accept/reject the
:one: What is?
Project Formulation is a concise, exact statement of a project to set the boundaries or limits of work to be performed by the project. :checkered_flag:
So, we can define project formulation as...
:check: Taking a first look carefully and critically at the
:check: Carefully weighing its various components.
:check: Analysing with the assistance of specialists or
Project Report :three:
• It is a concise copy of detailed analysis done
for the project.
• An entrepreneur/expert prepares the report
before the investment in project is done.
• The report assesses the demand for proposed
product/service, works out cost of investment
and profitability on this investment.
• It acts as an instrument to convince investors
to invest in the project.
A project report gives information on the following:
• Economic aspects
• Technical aspects
• Financial aspects
• Production aspects
• Managerial aspects