PROJECT APPRAISAL

Project appraisal refers to the systematic and comprehensive process of analysing the aspects of a project to determine if meets its objectives. The aspects include financial, social, technical and economic feasibility of the project. Project appraisal is important since it reduces chances of project failures. Project Appraisal is the analysis of costs and benefits of a proposed project with a goal of assuring a rational allocation of limited financial resources amongst alternate Investment opportunities with the objective of achieving specific goals.

OBJECTIVE AND SCOPE OF APPRIASAL To extract relevant information for determining the success or failure of a project. To apply standard yardsticks for determining the rate of success or failure of a project. To determine the expected costs and benefits of the project. To arrive at specific conclusions regarding the project.

SIGNIFICANCE OF APPRIASAL It helps in arriving at specific and predicted results. It evaluates the desirability of the project. It provides information to determine the success or failure of a project. It employs existing norms to predict the rate of success or failure of the project. It verifies the hypothesis framed for the project.

STEPS IN PROJECT APPRAISAL Step 1 Step 2 Economic Technical Indicates priority use Involves scale of the project and process adopted

Step 3

Organizational

Suitability is examined

Step 4

Managerial

Adequacy and competence are critically scrutinised

Step 5 Step 6

Operational Financial

Capability of the project Determines the financial viability for sound implementation and efficient operation

1.ORGANISATIONAL ASPECT The proposed organization must have the capacity to carry out the assignments given to it. Some of the basic principles to be followed: There must be clear lines of authority running from top to bottom of the organization and the chain of command should be clear. The responsibilities of each authority should be clearly defined in writing. The decision making power should be placed as near as possible to the scene of action. The number of levels of authority should be kept at minimum. The organization should be kept as simple as possible and should be flexible to adjust to changing conditions

In Junk Jewels Company there is single ownership and in the initial years the entrepreneur is the only worker herself designing the jewellery. After a period of 8 months the entrepreneur will employee workers and there will be proper delegation of work and authority. The decision making power is in the hands of the sole proprietor. The number of levels of authority is kept at minimum,that is there is only the proprietor and the workers working under him i.e the artisans.

2. TECHNICIAL ASPECT The technical aspect of project considers the technical feasibility of project. It concerns with the technical aspect of a project form both input supply side and output delivery side. Technically the project is feasible ,the website works as per the legal uidance and is managed and operated by the proprietor herself.

3.MANAGERIAL ASPECT The main task of management is to implement the project objectives within the framework of organizational structure. There is also a need for allocating responsibilities to various agencies for various project activities.