The document discusses the various phases of a project life cycle: 1. Project conception phase involves generating project ideas and evaluating them through SWOT analysis and feasibility studies. 2. Project formulation phase involves examining the technical, economic, and financial aspects of selected projects through preliminary and detailed project reports. 3. Project appraisal phase involves critically evaluating projects from various angles such as market, technical, financial, economic, and organizational viability. 4. Project execution phase involves implementing approved projects through activities like engineering designs, contracting, construction, recruitment, and commissioning. 5. Project completion phase involves confirming customer satisfaction, archiving project records, and closing outstanding tasks.

1. PROJECT LIFE CYCLE
DR. RICHA SINGHAL
ASSOCIATE PROFESSOR
DEPTT. OF EAFM
S.S.JAIN SUBODH PG COLLEGE

2. PRESENTATIO
N CONTENT
PROJECT LIFE CYCLE
PROJECT CONCEPTION PHASE
PROJECT FORMULATION PHASE
PROJECT APPRAISAL PHASE
PROJECT EXECUTION PHASE
PROJECT COMPLETION PHASE

3. THE ENTIRE SEQUENCE STARTING WITH THE PROJECT
CONCEPTION TO THE END OF PROJECT COMPLETION IS
CALLED ‘PROJECT LIFE CYCLE’. LIFE CYCLE MAY BE
GROUPED FOLLOWING FIVE PHASES:
PROJECT CONCEPTION PHASE
PROJECT FORMULATION PHASE
PROJECT APPRAISAL PHASE
PROJECT EXECUTION PHASE
PROJECT COMPLETION PHASE

4. A- PROJECT CONCEPTION PHASE
1- GENARATION OF IDEAS
Observations
Analysis the Performance of Existing Industries
Examination the Inputs and Outputs
Review Imports and Exports
Explore the Possibility of Reviving Sick-units
Trade and Professional Magazines
Research Bulletins
The Plan Document
Visit Trade Fairs and Exhibitions
Suggestions of Financial Institute and Development Agencies
Investigation of Local Material and resources
Analysis of Economic and Social Trends

5. 2- SWOT ANALYSIS
Strengths – resources and capabilities (strong brand name, good reputation, favourable
networks, high grade natural resources, strong financial position etc.
Weaknesses- lack of patent protection, weal brand name, poor reputation, high cost
structure, lack of best natural resources etc
Opportunities- unfulfilled customer need, arrival of new technologies, loosening of
regulations, removal of international trade barriers.
Threats- substitute products, new regulations, increased trade barriers, high competition,
shifts in consumer tastes, high rate of inflation etc.

6. 3-MONITORING THE ENVIRONMENT
 Economic Sector- state of economy, growth rate, cyclical fluctuations, rate of inflation, balance
of payment.
Government Sector- industrial policy, govt. programs and projects, tax designs, import and
export policy.
Technological Sector- present and emerging new technologies, foreign as well as domestic.
Socio- Demographic Sector- population trend, age of population, income distribution,
educational profile, employment, consumption, investments etc.
Competition Sector- number of firms in market, their products, comparison in terms of quality,
price, performance, marketing policies and practices.

7. 4- CORPORATE APPRAISAL
Marketing and distribution area
Production and operations area
Research and development area
Corporate resources and personnel area
Finance and accounting area

8. 5- PRELIMINARY SCREENING
Compatibility with the Entrepreneur
Compatible with Government Regulations and Priorities
Availability of Inputs
Adequacy of Market
Project Cost Justification
Risk involved in the project

9. 6- SELECTION OF THE BEST PROJECT IDEA
Identification of factors relevant for project rating
Assigning of weights to these factors
Rating the project proposal
Multiply each factor with the weightage to get factor score
Adding all the factor scores to get overall project rating index.

10. B-PROJECT FORMULATION PHASE
IT INVOLVES SYSTEMATIC EXAMINATION OF TECHNICAL, ECONOMIC,
MANAGERIAL, FINANCIAL, COMMERCIAL, ORGANISATIONAL AND LEGAL
ASPECTS OF A PROJECT.
TO IMPROVE THE IMPLEMENTATION OF THE PROJECT BY OBTAINING
NECESSARY GOVERNMENT CLEARANCES.
1. PRELIMINARY OR PRE-FEASIBILITY ANALYSIS
2. FEASIBILITY ANALYSIS OR PREPARATION OF DETAILED PROJECT REPORT
(DPR)

11. 1- PRELIMINARY OR PRE-FEASIBILITY ANALYSIS
Preliminary analysis is essential to examine the project idea in the light of the
available internal and external constraints. Internal constraints arise due to the limitations
of project sponsoring and implementing body. External constraints are due to the
characteristics of the environment.
The pre-feasibility study can be reviewed as a series of steps resulting in a
document called ‘Project Feasibility Report (PFR) or Preliminary Project Report (PPR).
PFR- an overview of the Project’s proposal , to provide a basic guideline on
technical, economic and commercial parameters of a project.

12. Structure of presentation
Introduction
Objectives
Market Survey
Location of the project
Cost estimation for capital facilities
Sources of raw- material, components
Capital investment requirements under various main expenditure needs
Production programme
Competitors profile
Financing of the project
Executing and operating agencies and the organisation proposed
Manpower requirements
Likely effects of environmental factors
Profitability calculations
Conclusion and recommendations

13. 2- FEASIBILITY STUDY OR PREPARATION OF DETAILED PROJECT
REPORT:
The technical, economic and commercial justification has to be provided
in comprehensive and authentic terms before the final decision is taken to commit
resources. At this stage, the project is presented in such a way that the project
sponsoring body, the project implementing body and the external consulting
agencies are able to decide whether to accept the proposal or not.
DPR- It is a precious formal document of commitment prepared and
presented by sponsors of a project. The preparation of DPR is undertaken only
after the investment decision is made on the basis of technical, commercia,
economic and financial feasibility studies so that the expensive efforts involved in
the preparation of DPR are not wasted.

14. Contents of a Detailed Project Report (DPR)
 Background of the Project
Objective of the Project
Justification of the Project
Marketing Feasibility
Technical Feasibility
Financial Feasibility
Economic Feasibility
Social Feasibility
Salient features of the Project (costs and sales)
Programme of activities of the Project (requirements, scheduling, resources)
Organisation of the Project (Structure, authority, responsibility, line of control)
Implementation details (precautions, sequence)
 Project result

15. C- PROJECT APPRAISAL PHASE
It can be defined as a critical and analytical evaluation of the project from different angles
such as market, technical, financial, economic, ecological, organisational, managerial and
legal aspects.
Technical viability (location, technology, layout, process of production, product mix, plant
capacity)
Viability (present and future demand, sale and distribution, competitors, consumers
background, government policy)
Financial Viability ( product cost, profitability, sources of funds, optimum utilization of
funds, maximum ROI)

16. Economic Viability (Economic policy, Tax factor, market revenue, risk and uncertainty)
Organizational viability (strength of the organization, HR policies, Organizational setup)
Managerial Viability (academic qualification, business and industrial experience, past performance,
capabilities)
Social viability (employment, growth of small scale industries)
Ecological viability (power plants, environmental –polluting industries)
The results and interpretations provided by different types of feasibility and appraisals of the project
and evaluated to make a final decision or to decide whether the project is worth while. A project is
accepted if its net benefits exceed those of the next best alternative course of action.

17. D- PROJECT IMPLEMENTATION PHASE
 Preparation of Engineering Designs (blue print, designs of building, plants, machines , supporting
facilities)
 Negotiation and contracting (purchasing, raw-material, construction work contracts)
 Installation and Construction work
Recruitment and Training
 Plant Commissioning (trial production starts)
 Project Monitoring and control or follow up (cost, time, quality)
Implementation of the project is very complex, time consuming and risky task. Delay in
implementation can prove to be very costly. All techniques of project management are applied to this phase
essentially.

18. E- PROJECT TERMINATION AND CLEAN-UP PHASE
Confirming customer satisfaction (feedback)
Arrange relevant project files for future reference
Bringing back equipment for other to run
Discharging outstanding dues
Relieved assigned project staff
Maintain Project accounts

19. THANKS