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Information Management and Project Evaluation - Coggle Diagram

- - - - Companies classify projects into the following categories:
      - Replacement: maintenance of the business, they are intended to replace damaged, fully depreciated or morally obsolete equipment.
      - Replacement: cost reduction, whose purpose is to replace useful but obsolete equipment. The forecast of these expenses is to reduce the cost of labor, materials and other items such as electricity.
      - Expansion of existing products or markets //** aims to expand stores or distribution facilities in markets currently served.
      - Expansion into new products or markets://** is used to evaluate the costs and expected benefits of a new product or service, with which it is intended to expand the company within a geographical area not currently covered.
      - Safety or environmental projects://** are related to the necessary expenses to comply with government regulations, with labor contracts, with the terms of insurance policies. They are called mandatory investments or projects that do not produce income.
- - - - In this part, the specific characteristics of the good or service under analysis must be defined.
      - Main product. Data must be gathered to identify the main product. Its physical, chemical or any other characteristics must be indicated. There must be consistency with the data of the technical study. It is necessary to clarify if it is about products for export, traditional, or a new product.
      - By-products. Indicate if by-products originate in the manufacture of the main product and the use that will be given to them.
      - Substitute products. The existence and characteristics of similar products in the market must be indicated, and that they can compete with them in the market, indicating under what conditions they can favor or not the product under study.
      - Complementary products. Indicate if the use or consumption of the product is conditioned by the availability of other goods and services. Identify these complementary products, highlighting their relationship with the product, so that they can be included in the market study.
- - - - The stages to follow for financing are:
      - a) Determine the financing needs.
      - b) Identify possible sources of financing.
  - - - In this case, the following should be analysed:
      - Fixed Investments.
      - Fixed investments are made up of goods that are not subject to transactions, are obtained during the implementation or execution stage, and are used during the life cycle of the project.
      - Working Capital.
      - Working capital or operating capital is obtained by subtracting the current liabilities from the current assets of a company in operation.
      - Investment Schedule.
      - Every project must present an execution schedule indicating the disbursements and the dates on which they will be made.