Se Basics of Project Management i TRODUCTION OF PROJEC 1.1.1. Concept of Project : wu. ‘The word project denotes a planned work, which entails one-time project is essentially initiated with a view to aneet specific requirem which may be creation of a new product/services or tringine aba yout changes project undertaken by an organisation results in major deviation from the routine activities, such as production of goods and services. Each project is undertaken by a business organisation with a definite and unambiguous objective. The time frame, within which the project needs to be completed and the sources of various resources, etc. are assessed and appraised well in advance before the beginning of a project. Definition of a ‘Project’ has been stated by various authorities in their own Ways, some of which are as following: ‘According to the Project Management Institute’s (PMI) Publication, A Guide to the Project Management Body of Knowledge (PMBOK), a project is defined as, “a temporary endeavour undertaken to create a unique product or service”. According to F. son, “A project can be defined as a non-repetitive, one-off undertaking, normally with diserete time, financial and technical performance goals”, a According to the British Standard, a project is define as, "a unique set of co-ordinated activities, with definite starting and finishing points, undertaken by an individual or organisation to meet specific objectives within defined schedule, cost and performance parameters”. {A project may, therefore, be described as an assembly of an exceptional set of inter-connected activities, which are designed and implemented in a specific order with a view to creating a new/exclusive productservice in aecordance with parameters indicated by the client with regard to time-frame, budget and other specifies.Basics of Project Management (Unit 1) 13 ‘Types of Projects Projects may be broadly classified into following groups: TypesClassification of Project National and International Projects | Industrial and Non-Industral Projects Projects Based on Level of Technology iS Projects Based on Size Projects Based on Ownership | Infrastructure Projects Project Based on Need National an¢ E : # eonupmiies| padlorarebent 2 tata Domestic projects may be undertaken fr implementation by the ‘imil jee ii inicorporat in other countries (National yjects). Similarly, the companies incorporated in India may also be given the job of paainkech ote of ape of countries other than India (International Projects). A high level of competence is required for participating in international projects. In addition to the general knowledge of that country, specific knowledge with regard to the legal, geographical and other aspects of that country is also desirable. Various risks associated with the project need to be taken into consideration, while assessing the project opportunities abroad. Dy Tndustrial and Non-Industrial Projects: National Projects mentioned above, may be divided into two categories, viz. industrial and non-industrial projects. Projects of commercial organisations launched with the sole objective of profit making and wealth creation are referred to as industrial projects. However, there are projects with the basic objective of social service and not profit making. Such projects are generally Government-funded (Central or State) and their funds are allocated out of annual budgets or five year plans. Some examples of non-industrial projects-are related to healthcare, education, agricultural development, soil conservation, etc. Impact of such projects is subtle and cannot be measured in monetary terms. sjects Based on Level of Technology: From the technological point of view, the industrial projects may be categorised into three groups, viz. () high technology, (ii) conventional technology. and (ii) low technology. High technological projects, for obvious reasons, require substantial amount of money. Examples of such projects are space projects, nuclear power projects, advanced electronics projests, Lovel of investment required under conventional projects is moderate (less than the required level of setctment in high technology projects). Traditional technology is used in such projects. Conventional projects are implemented by sugar industries, steel industries, cement industries, chemical industries, ete. Many of the products manufactured by such projects are used as raw materials for other industries, while some others are used by common persons-directly. jects Based on Size: Projects may, also be classified on the basis of plant capacity and size of investment, as mentioned below: 3) Small Scale Projects: Projects involving an investment level of less than rupees five crore are considered as small scale projects. ii) Medium Size Projects: Projects with a capital outlay between rupees five cro crore are considered as medium size projects. iii) Large Scale Projects: Projects wherein an investment of more than rupees one hu involved, are considered as large scale projects. re and rupees hundred indred crore are Large scale and medium scale projects are eligible for financial support from All India Financial Tatttutions (AIFIs) like IDBI, IFCI and commercial banks. For the financial support 1 respect of small scale projects, State Financial Corporation (SFCs) and commercial banks may be approached. For the procurement of raw materials, equipments, ete. the small scale jprojects may have assistance from State Industrial Development Corporations also.MBA Second Semester (Project Management) JNTUK 4 . nership of an organisation is yet another basis of classifying a project, AF. Projects Baded! an Owmerahlt: Cinres categories on the basis Gfownciship, vie: Publie Sooke Projects, The projects oy ects, and Joint Sector Projects. They have been discussed in the following points: Pal ie Sector Projects Projects undertaken by Central Government or State Government.or jointly by cari Pthem are termed 28 public sector projects. Such projects are monitored by the concemed administrative department or through Public Sector Enterprise (PSE) or Public Sector Undertakings (PSUs). Some examples of such projects are railways, airlines, state transport corporations, Public Sector Banks (PSBs), State Bank of India (SBI), Life Insurance Corporation (LIC), steel plant with Government ownership, ete. A Private Sector Projects: Projects undertaken by the enterprises with private ownership are referred to as Private Sector Projects. Such private ownership may be in the form of a proprietorship firm, a partnership firm, a private limited company, or a public limited company (but not a PSU). The primary Objective of such projects is weilth creation, which is in contrast with the objective of Public Sector Projects, where the profit making is not the main consideration, ‘ ji Joint Sector Projects: They are the projects, wherein the ownership pattern consists of a partnership between the Government and private enterprise. It is a synergy between the managerial skills of the Private sector on the part of one partner and Liasoning edge with other Government departments Gncluding rising of huge amount of required funds) on the part of another partner (Government). Participation in such projects is beneficial for both the partners. From the Government point of view, managerial expertise and marketing skills of private sector is made available for the project, whereas from the private entrepreneur's point of view, there is no need to bother for Liasoning job with various Government departments and contribution of investment amount. _Dr lafrastructure Projects: Projects, undertaken with the objective of creating infrastructure facilities such as road, power, telecommunication, port, etc. in the country, are termed as infrastructure projects. Such projects entail huge amount of investment with a long gestation period and as such they are altogether different from the traditional projects involving production of goods and services. Py Projects Based on Need: Basically, a project is undertaken by an organisation with an underlying objective, need, or goal specific to that project. Identification of such need is crucial for the project to succeed, Projects initiated by a business organisation may be classified on the basis of such need also. In the above backdrop, projects may be classified as under: > i) Balancing Projects: It is a project, which is undertaken with a view to enhance or improve the capabilities of a specific area or set of areas within the existing production arrangement. The motive behind undertaking such a project is to ensure synchronisation between various production centres of the plant. Successful implementation of balancing projects result in an increased production. ') Modernisation of Project: As the technology and business processes keep on changing at a very fast Pace, it is necessary for an organisation to upgrade. its systems in order to take full benefit of the latest technologies and processes available. Such projects are undertaken with the objective of reducing the Production cost of a manufacturer, so that it may offer a competitive price for its products. The. above objective is achieved by doing away with obsolete technologies and systems and introducing the new machineries, new technologies and new processes. However, the activites of the organisation and line OF business does not undergo any change. On completion of a modemisation project, the outcome is in the form of higher output, economy in operations, and the resultant increase in profitability. Ji Expansion Project: Expansion projects are undertaken with the objective of substantial enhancement in the level of produets/ services, an organisation is-currently engaged in. For example, 2 manufacturing company engaged in the production of T.V. sets with an installed capacity of 1,00,000 Sets per year, may decide to go for a project to enhance its production capacity to 150,000 .V. sets pet year by installing another plant, such project would be termed as expansion project of that company. Two important points, which need to be taken into consideration before going ahead with such expansion projects, are: a) Intention of the manufacturer to fulfil the likely increase in the market demand of the product; and b) Intention to have a larger share of its product in the market,Basics of Project Managemen Unit 1 Avy Replacement Project; 15, Various parts of a Plant need to be rey ir 4 Placed from time to time, due to normal alias ra aes their age, as the time goes by, they start creating frequent breakdowns. This manufactur’ it imeteased maintenance cost and decreased production. Under such circumstances, a ha replacers MAY get the old/troublemaking Parts and machineries replaced by the new ones, through a replacement project. This results in redui ultimately leads to a bet iced maintenance cost and increased output, which ter profitability, vy) Prreralication Project: Diversification Projects envisage venturing into new activities, which are altogether different from the activities undertaken by an organisation at present, For example, the Tata Ltd., engaged in the Production of heavy machineries, may decide to enter into the business of finance. This can be done through a diversification project. vi) Rehabilitation/Reconstruction Project: This type of project is undertaken with the sole objective of rehabilitating a sick company, so as to bring it te the normal health, 05) Plant Relocation Project: At times, due to varying reasons, its plant from one place to a inother. As a lot of complications are involved in such an exercise, the entire Process is entrusted to a project known as Plant Relocation Project. Such a project is also undertaken in a situation, where a company buys a plant at a place other than its place of business and there is a need to re-install the plant at the place of its business. an organisation is compelled to relocateJES. Causes of Delay in Project Commissioning - Cost and Time Overruns ‘Overruns have become the rule and not the exception in Indian project management. This observation is especially true of the public sector projects although there are overruns in the private sector also. Cost overruns lead to erosion of financial outlays and delays in project implementation. These overruns also lead to huge over-capitalization in the projects resulting in high unit cost of products and ultimately rendering them non-competitive in the market. The main factors responsible for cost overruns at different stages of a project are summarized as follows: IY’ Pre-Feasibility Stage i) Bureaucratic delays in land —acquisiti _ pollaionfenviroameail deimnsed ce Seemettal glearances and’ persnissions, 4i) Delay in obtaining loan and financial assistance from financial institutions,Basics of Project Management (Unit 1) 45 iii) Lack of different infrastructural facilities. iv) Failure to plan important resources, faci putting into operation. ies, tie-ins and inputs required for timely construction and ¥)_ Selection of incompetent consultant based on extraneous considerations. Ay Evaluation Stage ') Inadequate project study resulting in understatement of scope and underestimate of cost and resources, calling for revision of resources and cost estimates; non-freeving of specifications; leck of clearity in the budget scope. ) Wrong selection of location influenced by factors other than technical, e.g. political influence. i) Inadequacies of consultants and project authorities leading to wrong economic studies and misleading fund flow statements and financial projections, causing financial impediments. 3Y Technology Selection and Engineering Stage i) Selection of poor or outdated technology. ii)” Selection of technology based on credit considerations rather than technical competence. Starting of detail engineering and preparation of shopping lists before finalizing process flow-sheets and line diagrams. iv) Improper scrutiny and approval of drawings and specifications. ¥) Delay in completing detail engineering; insufficient design data; delay in the freezing of design and _e_ SPesifications; absence of an engineering schedule. AY” Contracting and Procurement Stage i) Delay or slipshod preparation of tender documents, ii) Poor selection of vendors/fabricators/contractors/suppliers, etc.; delays in evaluating bids. ii) Delayed placement of orders. iv) Delay in supply of critical equipments. v) Absence of effective quality control mechanism. vi) Poor selection of vendors/manufacturers/fabricators/suppliers and contractors and preferential treatment to public sector enterprises, on the basis of government's guidelines. vii) The practice of accepting the lowest quotation, irrespective of the vendor quality and/or contractor's competency. ) Delay in the issuance of import licences, permits and various clearances. ix) Delay in the opening of letters of credit and issuance of various guarantees to foreign suppliers. x) Time-consuming procedures concerning the procurement of imported raw materials and hi-tech components by Indian manufacturers of equipment. xi) Inadequate expediting actions. i) Lack of integrated action plans closely involving suppliers and contractors. xiii)Lack of proper quality control arrangements — stage and final, and consequent defects in equipment. xiv)Changes and modifications without cost-benefit analysis. xv) Poor logistics planning. : 5y Construction Stage : Pea : i) Early start of construction activities without proper planning and ensuring availability of working drawings, storage space, supply of materials and equipments and adequate infrastructure, Indecisions or delayed decisions leading to failure in replacement supplies. iii) Low productivity of contractors, financial problems due to delays in settlement of their claims and improper coordination and monitoring of contractors’ work. iv) Bad quality control. ¥)_ Lack of micro-level schedule control with reference to the macro-plan of the project. vi) Unfair treatment to contractors and suppliers. vii) Delay in: a) Payments, 'b) Supply of owner's free issues,MBA Second Semester (Proje MASSSERE) INT ©) Provision of infrastructural facilities. and 4) Settlement of extras, changes and claims. viii) Delay in replacement supplies. 6) Commissioning and Start-Up Stage i) Delays in the availability of manuals, services, feedback and special tools. eae ii) Defects in erection and installations; teething troubles resulting from bad quality control during erecting and inadequate testing of equipment. in desi ) Failure of certain equipments and parts; absence of commissioning specialists: changes in desisns ___ delays on the part of equipment suppliers and/or the commissioning contractors. iv) Absence of commissioning specialists. ¥) Design changes. vi) Delayed activities of process owners/suppliers of main equipmentcommissioning contractors. = vii) Teething troubles resulting from bad quality control during erection and improper testing of equipment. AY’ Generally in All Phases i) Weak project team. ii) Indecision. iii) Lack of managerial talents. iv) Discontinuity of efficient team members. v) Absence of personal accountability and commitment. vi) Undue job security and resultant indiscipline. vii) Lack of awareness of the money value of time. viii) Inadequate controls and ignoring of warning signals. ix) Poor quality awareness. x) Unwarranted CBI enquiries not oriented towards project objectives, and consequent working atmosphere of fear which depresses the spirits of well-meaning decision-makers. xi) General ignorance and non-implementation of sound project management practices. is a frightening economic problem and there is an urgent need to combat this menace. Fae Er er atng ibe tines and cost overruns i the application of sound project management practices and a deep commitment on the part of all the people associated with the project.AS2. Sources of New Project Ideas There are several sources from where new project ideas may emerge from: AY Existing Industries: The study of performance level of current industries gives a clue about the health of the industry. The study may include break-even point and Profitability of the industry, AY Availability of Raw Material: It is important to have smooth availability of raw material at reasonable Price for project to be successful. 3Availability of Skilled Labour: The choice of suitable industry depends on the availability of skilled labour locally. 9Y ImportExport Statistics: Study of these statistics may expose hidden opportunities. Products with high imports may be started to be produced domestically. Similarly, increase in export of a product also indicates its high profit potential. 5yPrice Trend: The price trend of a product also gives suggestion about the demand-supply situation of the Said product. The analysis of demand -supply gap originates the development of new project. Data from Various Publications: 1t is also important to study data from various sources such as Bovemment publications, studies done by banks or financial Institutions, reports. generated. by consultancies. These studies help in determining important factors regarding the industry. D-Research Laboratories: Research laboratories engage in identification of new products and processes. They can also indicate new areas of investments with their research. However, many products do not qualify for scaling up. Hence, proper care should be taken,48 MBA Second Semester (Project Management) Ty, 8) Consumption Abrond: Entrepreneurs with risk taking abilities may introduce exotic Products in jy. markets, It is done by studying the consumption pattern abroad, It may also help in finding project, wig’ good export potential. 9}Consumers: Consumers act as a main source for new idea generation. The need and preference t Consumers becomes the source of idea, Consideration should be given to the view Point of the poten Consumer who support large crowd for the new idea. 10) Tdentifying Unfulfilled Psychological Needs: Though the existing products may satisfy ee demand, there may be several psychological needs which may not be fulfilled, e.g., the consumer goods. Study g¢ such unfulfilled needs is also an important source for determining new projects. -11) Plan Outlays and Government Guidelines: A project's potential under different sectors is greayy determined by government policies and plan outlays. The Department of Industrial Development ang Government of India publishes various studies providing useful information about different indust sectors, These publications also provide information about future scope in domestic and internation markets about the licensed and installed capacity. 12)Beonomic and Social Trends: Analysis of social and economic trends also helps in determining feasibe “projects. For example, use of projectors in school for teaching purpose, use of website for shopping, etc 13f Reviving Sick Units: Many industial units may fall sick due to internal reasons. Such units may be acquired by new owners who are having the skills to revive the sick units. These projects are highly risky and should be undertaken by suitably qualified entrepreneur.Market Feasibility (Unit 2) 33 UNIT 2 Market Feasibility 2.1. MARKET FEASIBILITY 2.1.1. Meaning of Market Feasibility Market feasibility study is a logical the marketing viabil tudy and a marketing plan about a course of action to be taken, It studies 'Y of the project in terms of its ability to satisfy customer's needs. Information to be collected and analysed during market feasibility: 1) Unmet needs that could be addressed by a new product or service. 2) Overall demand for new products, services or ideas, 3) Characteristics of likely customers. 1.2. Steps in Market & Demand Analysis . The market and the demand analysis should be done in a systematic way as illustrated below: 2.1.3. Situational Analysis ACHE OH With a view to study the relationship among the market and the product, project Situational Analysis manager is required to informally carry out the discussions with the r competitors, middlemen, customers and others who holds a relevant position in casas otoee the industry. SS ‘The background and the past experience of the company is also considered to understand the tastes, preferences and the purchasing power of the customers. ‘An eye is also kept on the strategies adopted by the competitors and analyse the. -————¥___ Market Survey role of the middlemen. = of the Market If adequate information is generated regarding the market and the demand than. Danni neal revenue can be forecasted, it provides the management with a reasonable = assurance. In such a situation, there is no further requirement to conduct + surveys especially when the underlying cost and time do not permit. Market Planning Figure 2.1: Steps in Market & 2.1.4. Collection of Data ‘Demand Analvsis Every possible aspect is touched for data collection. Thus, the data can be classified into two categories: 1) Collection of primary information/data, and 2) Collection of secondary information/data. 24.5. Collection of Primary Information ‘The first hand information that is collected to fulfil the current requirement is known as the primary data. Broad guidelines are set for collecting the primary data. To draw the guidelines, initially the objectives are laid down so that the data meets the parameters, While collecting the primary data, the cost and benefit analysis is also carried out to avoid overdoing. ‘The objectives set should be economically feasible, precise and attainable. This will ensure that the data collected is reliable, valid and accurate and the chances of errors and deviations will be reasonably less. Ifthe data collected is valid, it means that it is more likely to meet the purpose. The experienced and the qualified researchers "Y eliminate the collection of the inaccurate as well as the invalid data and provides better resultsMBA Second Semester (Project Managemen) INTUK 3) Income and Price elasticity of the demand, 4) Buying motives of the consumers, 5) Purchase of plan and intention, 6) Consumer satisfaction level with the existing products, 7). The needs that remained unfulfitled, 8) Consumer's response towards the available alternate products, 9) Different trade parlance and consumer preferences, and 10) Features and responses of the buyers. 2X71. Categories of Market Survey Following are the methods that are commonly ised in surveys: : AY” Mail Survey: It incorporates sending questionnaires to the respondents in the form of mails. The respondents are prompted to complete the questionnaire and return it. This method of survey is used whee the sample of respondents is widely distributed and limited funds are available to conduct the survey. Mai surveys prove to be less costly as compared to 4 personal or telephonic interview only when the rate of response gives desired and consistent results. _2Y Telephone Survey: It incorporates calling the respondents over a telephone and asking them questions, One benefit that it has over mail survey is that here the interviewers can prompt the respondent to ansivet the questions which can be examined instantly. However, those who are low on budget and wish to conduct the research via telephones, find that the interviewers charge high prices. 3) Personal Interview Survey: Personal interviews are face-to-face interviews. These are employed either ‘when the survey is so long that it cannot be conducted over a phone or when the interviewer wants to show something to the respondent. Personal interviews prove to be more effective when the respondent is required to taste the product or the product is placed at an office or home, or when the respondents demand _t0 conduct the interview personally. _-4) E-mail Survey: These are among the most popular methods of online research till date. With the help of this method, people can copy the URL of an online survey company to their own e-mail. They can then send it to the respondents who can then finish the survey by clicking on the survey URL and opening it. 5)~Online Survey: It involves systematic collection of data which incorporate inviting the respondents and ~~ encouraging them to complete the survey over the Internet. This method of survey will be beneficial only when the respondents have an access to the internet. A little proficiency over the internet is also required on the part of the person conducting the survey. __6)Bocial Media Survey: People can create and engage in online communities with the help of social media platforms. Such online communities are gaining huge popularity and they connect people who have similar tastes and opinions. They like to share information and ideas that interests them with each other. Survey Conducted through such people is known as social media survey.2.1.7. Market Survey Ttis not necessary that the secondary information being significant often forms a basis for the study of the market and the demand, It is the combination of both primary and secondary information taken in an ‘optimum mix to carry the study for the undertaken project. Market survey done is basically sample survey but cannot be implemented on the whole population. Under this, only a selected sample among the population is selected for observation and the study is done on it. The criteria of the sample remain to be the same for the complete population. ‘The following information can be revealed from a market survey: 1) Demand and the growth rate of demand, 2) Demand in the varying market segments,2.1.8. Characterization of the Markets On the basis of the information obtained by conducting the market survey and through secondary sources, the market can be characterised as follows: AY Effective Demand in the Past and Present: The effective demand represents the actual demand of the g00ds. It is the sum of the goods produced and the total imports made as reduced by the total exports out of the production and also giving the effect of change in the stock levels. ‘The expression of effective demand is given as follows: Production made + Total Imports ~ Total Exports — Change in Stock Level Break-down of Demand: In order to obtain the real demand, the total demand is segregated into different segments such as the consumer groups, type of product and geographic distribution. This information is useful to formulate correct strategy for the different segments. For example, demand for woollen clothes may be more in the northern region than the southern region. y Price: Data about the price is as important as the data regarding the quantity of the product. Not only the product, but also the price information regarding the substitutes is also observed carefully. -4Y Method of Distribution and Sale Promotion: Distribution method is dependent on nature of product prospective buyers, price of product and many other factors. Different distribution methods may be used for consumer goods, intermediate goods and the capital goods. It determines the advertising, discounting Schemes and the modes of distribution. 2Y” Consumers: Consumers can be classified on the basis of: a '}) Demographic and sociological, and BD it) Attitudinal attributes.2.1.9. Demand Forecasting After analysing and interpreting the data and subsequently the information that is obtained from various primary and the secondary sources, the next step is to adequately predict the future demand for the underlying product or the service. For facilitating these projections, numerous methods are available which can be taken up by the market analyst. Forecasting is a technique that facilitates the process of planning and enabling efficient decision-making, With these estimates, projections are made for the future. Combining the aspect of forecasting with demand, it serves With the future projections regarding the quantity demanded in precise. Certain questions like which product will be in demand? What will be the quantity demanded? Where will be the demands demanded? are answered by demand forecasting. It also helps in developing relation between the demand and price alongwith the price of the substitutes that are available. The change in demand as a result of change in any of these factors is also revealed. So, primarily demand forecasting serves as a mechanism to forecast and estimate with precision the future demand of the product. According to American Marketing Association, “Demand forecasting is an estimate of sales in rupees or Physical units for a specified future period under a proposed marketing plan”. 42.1.10. Market Planning ‘After formulation of the strategies, the manager proceeds to the formation of the marketing programmes. This constitutes marketing mix, marketing expense budget, market allocation, etc. Various organisational resources should be organised in an effective manner to formulate the organisational plans and keeping expenditure budget for the same. ‘The plans made should also be flexible so as to incorporate the requirements resulting out of the dynamicity of the market. As a market manager, the focus should be to develop such marketing plans so as to generate new demand and meet the overall organisational goals. Formulation of Marketing Plan ‘A manager should consider the following while formulating the marketing plan: 1) Determination of financial impact of the substitutes, 2) Deciding the alternate course of action, 3) Deciding the optimum marketing mix and allocating the expenditure among the four constituents ie. product, promotion, price and the place. ‘The marketing plans further have different parts which are given below: AY Executive Summary: The plan should initialise with a brief narration of the overall objectives of the organisation followed by the suggestions from the marketing manager in the body. This will enable the top management and the other board members to reach the grasstoot of the plan, Executive summary should be further followed by a content table describing the order of the plan and its constituents. 2) Present Marketing Situation: This reveals the present marketing scenario with details regarding the market, competitive edge, products available, distribution network and the other environmental factors. Presentation of the data is done in accordance with the market as a whole and different Pennies the past years. ti Consumer behaviour, demand, sales projections and market trends are analysed and interpreted afd the results give a complete idea of the market, All the products are described according to their prices, sales volume and the distribution.2472, Steps Involved in Conducting Market Survey an “There are 11 main st 2) teps in conducting a market survey. They are as follows: Objectives of Conducting Survey: A survey is initiated by describing the Objectives and the need behing FOnducting the survey. It is often observed that when a progress is made in the survey, it tends wo deviate from the basic objectives and the requirements of the organisation are not met. The Progression and the ‘objectives of the survey should move collectively. A problem arises when there is choice among the average or the total values. So the techniques that are ad lopted remains different with the selection of optimal sample size and estimated factors. Different agencies uses varied factors to study the impact made on the economy. Alongside, one can neglect the existence of the importance for their contribution to the economy. Population that is to be Sampled: One may face certain problems that are imposed by defining te Population as there is a need to consider all the perspective alongwith their technical and the physica qualities,‘Market Fenalbllty (Unit 2) ” ‘The selected sample of the pr vopulation Ls ra ‘The selected snple of the population sud cary all the wits and. [psittaci a7 ates of the population for whi the esate i undertaken, Wt any Ap ie mnple population ie linted nd the actual population is broader which Is in f Tope at oe Sarge ‘true, So the results derived are on the basis se nis of, sample population only and reasonable care should be taken w/ ee eee inpementing these reso the neta population, Any ter infraton ‘Daa be Coleced a deemed fH muy be collected and ined in te sly to reduce the L$; arise as a result of implementing the sumple results to the [—prpee or Pecon Desire total actual population, i 3y Data t ie Collected: One must keep an eye on the data that is collected. [Questionaire and the Choice of The collected data should be a valid one and should contain all the the Data Collections significant matters, Normally while collecting data, many questions arc put, but only few goes through the next round of the study while some fails to tion ofthe Sample Design maintain their position, A watch should be there to ensure that the significant ones are not neglected. A lengthy and meaningless Sampling Unite, questionnaire however deteriorates the quality of the answers. Mt T Pee-Tet 4)’ Desired Precision on the Surveys: There is always some uncertainty_} on the results that are obtained from the sample survey as only a portion ie of the population was put forth for analysis and study. This cannot be [ Granisionof be Fe Wok precisely said to apply to the complete population. To reduce this, aid can be taken by the use of better measuring tools and taking a larger — sample size. However, this will also result in more application of cont} Sanne int An Pee survey 1 and manpower, The individuals who are conducting the sampl should also move in a precise manner and ensure that all the aspects of the population have been duly accounted for. They should also establish “t certain tolerable limits ie the extent to which the sample results can be relied upon. ()Questionnaire and the Choice of the Data Collectors: The method adopted to conduct a survey and the instruments used in the same may vary from individual 0 individual. ‘The sample survey questions to be selected thus depend on the person conducting the sample survey. There may also be a difference in the approach of the person. He may get rigid when interviewing one sete of the society and may be flexible for the others. Apart from this the mode of transformation used may also ‘vary like e-mail, felephone, sms, personal visit, ete. So, care should be taken to have a best mix of the saime. given by the sample must be constructed correctly and no part of Straightforward and the answers are almost alike than there ‘are recorded with the same responses. So, in order to sxact structure and the summary finalised before finally Information Geined for Fuure ‘Surveys Figure 22: Steps while ‘Conducting Market Survey Record forms that contain the responses the same should be lost. When the questions are st is a chance that one who have answered differently develop a good record, it is important to know the e concluding. There exist number of methods for survey i interview, e-mail questionnaire, personal tall the approach selected from the above. (6y°Belection of the Sample Design: Number of different alternative plans are used for the selection of the sample Le, stratified random sample, simple random sample, two stage samplings cluster sampling, etc. For the plan that is undertaken, the sample size ean be roughly estimated and tht oo depends on the bias of the person selecting. ‘The time and cost factors involved in selection are also considered before the final selection. _ AY” Sampling Units: Sample design must be considered while a ‘There are several methods that can be used to draw the samy Strategy that is selected. 4)’ Sample with equal ii) Sample with Probabi n collecting the information which may comprise of telephonic ks or even postal surveys. The questionnaire framed depends on rawing the sample units. further depends on the sample ple units wh abilities, and ies Proportional to the Size (PPS).[MBA Second Semester (Project Management) JNTu, In the initial instance, probability of the units in the population but the unit, ir 5 lity of getting selected is same for all the units in the Por y have different probability in the case of PPS sample. The probability in this case is proportional to the following measure: Pi = XW/Xh, where, i =A generic vessel, h = Stratum, _ _ X=A size parameter, eg., the overall length of a vessel. 8) -Pre-Test: Before implementing the results on the entire population, it is suggested to apply the same on a relatively smaller scale and observe the outcomes. This will thus reveal the shortcomings of the Questionnaire and one will be able to know the improvements that is required while implementing at larger scale, 9Y Organisation of Field Work: A good survey normally caters to all the problems of a business organisation. The deputed personnel must be adequately trained and equipped with the methods to be employed by them while conducting the survey. Alongside there should be provision for supervision so that, they do not deviate from the objectives. Checking should be done at the initial stages to ensure that the survey is moving in the right direction, Alternate back-up should also be available if the personnel is not able to obtain the information from some of the units of the sample. 19Summarising and Analysing Data: After the data has been collected, the next step is to transform the ‘same in the form of the information. The complete questionnaire is summarised and the errors are rectified, It is also made sure that any erroneous data does not go further. Specially designed computer softwares and Programmes are used to correct the erroneous values and frame the correct statistics report. Such computer programmes are based on graphic analysis of the elementry data, ‘After such compilations, estimates are made by using diferent methods for future computations, 11 information Gained for Future Surveys: a