Answer to Question #186748 in Management for KAM

Question

Subject: Project Planning and Control

1. a) What do you understand by Project Appraisal? (Please answer in 100 words)

b)Explain different aspects of project appraisal with suitable examples.(Please answer in 200 words)

Answer 1

a)     Project appraisal is a crucial task for evaluating the project's main factors and determining the feasibility of a project plan. It is a crucial task to assess the project's main factors in order to determine whether or not to continue with the project proposal and capability. Project appraisal aids in the evaluation of a project's economic, social, and financial feasibility, as well as the decision to approve or reject a project and the verification of a project proposal's viability. Financial, economic, administrative, commercial, and technological evaluations are all performed on a project. Managers use a variety of evaluation approaches and techniques to decide whether or not to approve or refuse a project. For example, economic or financial valuation analysis, Excel Templates, and other decision-making tools.

b)    A project appraises various aspects such as the enterprise's location, building, plant layout, plant localization, manufacturing process, quality control, and control process. The venue and site chosen for the enterprise's establishment are critical to its success. A variety of factors influence the location and scale of an enterprise, including raw materials, labor supply, power sources, natural conditions, business conditions, and so on. As a result, the entrepreneur should think about the benefits of a good location and place.

The plant's size or capability is a critical factor in determining technological viability. Uneconomic scale tends to raise production costs, resulting in a high capital-output ratio. As a result, plant capacity advantages should be considered.

Technical viability, tools and equipment, suitability, adequacy, and government policies on mechanization, among other things, should be taken into account. Not only that, but the appropriate technology for a particular project should be clarified, with the emphasis on selecting the best technology by weighing various options.

The architecture of the building and plant should also be examined to ensure that they are appropriate for meeting the functional requirements, as specified by the criteria. It should also be noted that they should promote the enterprise's efficiency and protection.