Monday, 7 February 2022

Concept of project can be base for the project analysis

The concept of the project is one of the basic elements of the concept of project analysis. Consider the meaning of the term "project" and its meaningful load in the project analysis. The variety of interpretations of the concept of "project" indicates the inequality of the authors' approaches to its definition.

Thus, in 1987, the Institute of Project Management (USA) proposed the following definition: "The project is some kind of task with certain initial data and desired results (goals) that determine the way to solve it." The shortcomings of this definition were recognized both as the fact that the method of solving the problem is determined not only and not always by the results (goals) of its solution, but also by the fact that the means of its implementation are not mentioned in the definition of the project.



Here are a few more attempts to define the concept of "project", which are found in literature. For example, "the project contains a plan (problem), means of its implementation (solving the problem) and the results obtained as a result of its implementation." Or more: "a project is a set of certain elements (objects of material and intangible nature) and the connections between them, which ensures the achievement of the goals." These definitions can be considered universal, methodically balanced and sufficiently complete. Their flaws include the fact that they have practically no content aspect.

Without touching on theoretical disputes about the shortcomings and advantages of various definitions of the project, we propose to be guided by the concept that is closest to the definition given in the world Bank's methodological materials: "The project is a set of interrelated measures designed to achieve certain goals within a given time under established resource constraints."



The project, like any activity, has a number of inherent features, the presence of which will help to implement the effective implementation of the project.



The main features of the project are as follows:

  • the emergence, existence and completion of the project in a certain environment;
  • changing the structure of the project with the duration of its life cycle;
  • the presence of certain links between the elements of the project as a system;
  • possibility of canceling the project input resources.


Based on the definition of the project, the following main features of the project are distinguished:

  • changing the state of the project in order to achieve its goal;
  • limited time;
  • limited resources;
  • originality.
  • Changing the state means that the implementation of the project is always associated with changes in any system and is a purposeful transformation from an existing state to a desired one, which is defined in the goal of the project.



The goal of the project is the desired and proven result achieved within a certain period of time under the specified conditions of the project implementation. Determining the purpose of the project involves setting a task that requires:

  • determine the results of activities for a certain period;
  • give these results a quantitative assessment;
  • prove that these results can be achieved;
  • determine the conditions under which these results should be achieved.
  • The goal of the project has its own structure, which can be presented as a hierarchy of project goals. Time constraints mean that any project has a start date and a completion date. Limited resources means that any project will catch the amount of material, human and financial resources used on a set and limited budget. Uniqueness means that the activities that need to be implemented for the implementation of the project have such a level of innovation, complexity and structure that allows you to distinguish both one project from another, and the project from the program and plan.


From the point of view of scientific specialization, project analysis is a synthesis of knowledge from various scientific disciplines focused on solving the problem of choosing the best economic development, whether it concerns society or enterprise.

Project analysis should be understood as a dynamic process that occurs in two planes – time and subject. In the time plane, work is carried out that ensures the development process of the project, ranging from the emergence of the project idea itself to its completion. In the subject plane, the analysis and development of the project is carried out in various content aspects. The connecting link of these planes is a special trinity, which includes the goal of the project, really accessible resources and organizational measures.

Thus, project analysis is a tool for planning and developing any activity. At the same time, the concept of project analysis considers the project as a process consisting of a number of successive stages, and as a structure whose elements are goals, resources and activities.

Project analysis can be defined as a method that allows you to systematically assess the shortcomings and advantages of projects by establishing logical schemes for:

  • data collection and analysis;
  • determination of investment priorities;
  • consideration of alternatives;
  • analysis of existing problems and taking into account various aspects of project development and implementation before deciding on their financing.

 

The main functions of project analysis are:

  • development of an orderly data collection structure that would allow effective coordination of activities in the implementation of the project;
  • optimization of the decision-making process based on the analysis of alternative options, determining the sequence of implementation of measures and choosing the technologies optimal for this project;
  • a clear definition of organizational, financial, technological, social and environmental problems arising at different stages of the project;
  • assistance in making competent decisions on the feasibility of using resources for the implementation of the project.


Project analysis is also a kind of business philosophy, having mastered which, you can conduct your business more successfully.

Entrepreneurial activity requires constant answers to the following questions:

  • how best to dispose of your own funds?
  • how to attract investors and bank loans to the project?
  • how to achieve the best results at the lowest cost?
  • how to coordinate their activities with the environment?


To answer these classic questions, first of all, you need basic knowledge in the field of micro and macroeconomics, finance, management, marketing and other disciplines. However, this knowledge forms only a shell within which the entrepreneur must, using experience and skills, make specific and responsible decisions. They do not give methods of decision-making. Therefore, the world is developing a scientific direction, known as project analysis. To all the above questions, this discipline is designed to give answers.

Project analysis is used within the framework of the project approach, that is, when future activities are considered discretely in the form of a project that has four features: a goal, clearly defined means of achieving it, a time frame and a limited budget. These features of the project differ from the program and the plan.

Project analysis is a set of methods and techniques by which you can develop an optimal project in documentary form and determine the conditions for its successful implementation. Everyone who has devoted himself to business should have such methods and techniques. They should be known by those who create conditions for the prosperity of society (civil servants involved in regulating the economy), and those who deal with the use of their own and other people's money (banks, investment companies, funds).

According to the canons of methodology, it is necessary to determine the environment in which the project arises, exists and is completed. An adequate vision of the project environment is of great importance, since the project is the product of this environment and exists to meet certain of its needs. Therefore, the viability of the project to the maximum extent depends on how accurately the description of the project environment is presented from the point of view of its interaction with the project.

The environment of the project is a factor of influence on its preparation and implementation. External factors are divided into political, economic, social, legal, scientific and technical, cultural and natural.

Political factors include political stability, support for the project by state institutions, interethnic relations, crime rate, interstate relations.

Economic – the structure of gross domestic product, the level of taxation, insurance guarantees, conditions for regulating prices, the level of inflation, the stability of the national currency, the development of the banking system, the state of markets, the degree of freedom of entrepreneurship, etc.

To the public – conditions and standard of living, level of education, freedom of movement, social guarantees and benefits, development of the health care system, freedom of speech, local self-government, etc.

To legal – stability of legislation, human rights, property rights, entrepreneurship rights, etc.

To scientific and technical – the level of development of fundamental and applied sciences, the level of information and industrial technologies, the level of development of energy, transport, communications and communications, etc.

Cultural factors include the level of education, historical and cultural traditions, religiosity, etc.

To natural – climatic conditions, availability of natural resources, requirements for environmental protection, etc.

Internal factors include factors related to the organization of the project.

The organization of the project is the distribution of rights, responsibilities and responsibilities between the project participants. Among the main participants of the project are initiators, customers, investors, managers and contractors. The initiator of the project is a person who is the author of the idea of the project, its preliminary justification and proposals for the implementation of the project. It can be any participant of the project.

The customer of the project is the main person who is interested in implementing the project and achieving its goal and will use its results. The customer puts forward the main requirements for the project, its scale, provides its financing at its own expense and at the expense of attracted investors, concludes agreements to ensure the implementation of the project, manages the process of interaction between all project participants.

The investor of the project is a person who invests in the project and is interested in maximizing the benefits of his investments. It can be both a banking and a non-bank institution, an individual. If the project is not an investment project, the organization that finances the project acts instead of the investor.

Project manager is a legal entity to which the customer and investors delegate the authority to manage the project: planning, control and coordination of actions of project participants. The project manager to perform his functions forms a project team consisting of performers who implement these functions.

Project contractor – a person who, under an agreement with the customer, assumes responsibility for the performance of certain works related to the project.

The project participants also include subcontractors, suppliers, authorities, consumers of the project's products, etc.

Project participants can act in several faces, for example, customers can also be investors, investors – project managers, etc.

Internal factors include the relationship between the project participants, the professionalism of the project team, the style of project management and the means of communication.

The relationship between the project participants should be such that their interests are coordinated. The professionalism of the project team should ensure the achievement of its goal.

The style of project management determines the psychological climate and atmosphere in the project team, affects its creative activity and performance. It must comply with the norms and rules of modern management.

Communication tools determine the completeness, reliability and efficiency of information exchange between participants and significantly ensure the success of the project.

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