It is a specialized branch of management that includes variety of factors such as organization structure, the process of planning and control, human relations etc. It is executed as under:
a) Decide the scheme of operations.
b) Break down work into series of operations.
c) Evolve an orderly sequence or programme.
Every project has three basic attributes, namely
· The input characteristics
· Output characteristics, and
· Social cost benefit characteristics
The input characteristics define what the project requires such as rawmaterials, energy, manpower, financial resources and organizational structure.
The output characteristics define what the project will generate viz. production of additional goods, provision of additional services etc. The social cost benefit aspect affects the equilibrium of availabilities and nonavailabilities in an economy. Thus the benefits which will be accrued to the society have to be carefully evaluated. The project idea needs to be evaluated for its feasibility and the setting up of an enterprise should be based on careful and sound evaluation. Project appraisal brings credibility to a project and projects from in built weaknesses and consequently a healthy and viable industry comes up.
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