Techniques of Project Formulation

This note will provide brief description on work need to be done to formulate a project like concept about feasibility analysis, social cost benefit analysis, environmental analysis and input output analysis

Summary

This note will provide brief description on work need to be done to formulate a project like concept about feasibility analysis, social cost benefit analysis, environmental analysis and input output analysis

Things to Remember

  • feasibility analysis is the technique to screen out non-feasible projects.
  • cost benefit analysis is economic analysis of investment from larger point of view.
  • resources of projects are man, material, machine etc.
  • environmental analysis is necessary to find out impact of project on environment.

 

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Subjective Questions

Q1:

Define the terms:

  1. Graph
  2. Vertices
  3. Edges
  4. Directed Graph
  5. Undirected Graph
  6. Weighted Graph
  7. Degree of graph
  8. Indegree
  9. Outdegree

Type: Long Difficulty: Easy

Q2:

Write down the C-representation of a graph.


Type: Short Difficulty: Easy

Q3:

Why is linked representation of graph better than representing it using an adjacency matrix? Declare a graph using linked representation and write down the primitive operations as well.


Type: Long Difficulty: Easy

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Techniques of Project Formulation

Techniques of Project Formulation

2.4 Techniques of Project Formulation

Different techniques and methods are available for project formulation. They are:

  1. Feasibility analysis.
  2. Cost-benefit analysis.
  3. Input-output analysis.
  4. Environmental analysis.

A brief description of every stage of project formulation is provided here.

  1. Feasibility analysis.

.
  • Feasibility analysis helps us to screen out non-feasible projects and select the project which is viable from technical , economical and also all other aspects. Feasibility answers which project to undertake.In the feasibility analysis detailed study is carried out on following aspects.
  • Technical
  • Economic
  • Financial
  • Marketing
  • Management
  • Environment

2. Cost benefit analysis

  • In simple term it is known as economic analysis of the investment proposal from the larger social point of view. Therefore it is regarded as social cost-benefit analysis (SCBA) in general.
  • Cost-benefit analysis is the comparison of different projects competing for the same resource budgets.
  • It is an analytical tool in decision making which enables a systematic comparison to be made between the estimated cost of undertaking a project and the estimated value and benefits which may arise from the operation of such a project. It is used in both sectors public and private.
  • For private sectors, CBA examines the profitability but for the public sector in examines the social profitability. Social profitability is determined in terms of economic growth, income redistribution, employment generation, social development and poverty reduction

3. Input-output analysis

Project requires various inputs for i.e. resources. It deals with the analysis of human and non-human resources that serves as inputs for the project.Inputs or resources includes following:

  • Man
  • Materials
  • Budget
  • Time
  • Equipment
  • Information

4. Environmental analysis

No matter how big or small is a project its impact on different aspect of environment needs to be analyzed and reviewed. For small project IEE- Initial environmental examination is carried out where as for big projects EIA- Environmental Impact Assessment is carried out before project implementation. The area of focus of environmental analysis are environmental suitability and environmental impact.

  • Environmental Suitability: A Resource management aspect of the project is given prime consideration to examine the project as environmental suitability.
  • Environmental Impact: Environmental Impact Assessment is carried out to identify the impact of the project on the environment. The mitigation measures for the probable impact are justified in EIA.

Bibliography

IshwarAdhikari and Santosh Kr. Shrestha, “A text book of Project Engineering” 2011, Chandeshwori Publication, First Edition.

K. Nagarajan, “Project Management”, ISBN: 81-224-1340-4, New Age International (P) Limited, New Delhi, India, 2001.

E.R. Yescombe, “Principles of Project Finance” 2002, Yescombe-Consulting Limited.

Lesson

Project Appraisal and Project Formulation

Subject

Civil Engineering

Grade

Engineering

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