What is Project? What are Characteristics of a Project?

>> November 12, 2010

Above basic question is important for MBA and CS students who are preparing project management which is also part of financial management. So, we are covering first topic "project" in project management.

Meaning of Project

Project is that planning in which we try to best under a perfect system for making product or buying any fixed asset or creating services for our customers. For example, you have to start a new business. To start a new business is a simple example of project. Either you can make its planning by yourself or you can take the help of CA. CA will make your project report and it will explain your estimated cost of fixed assets, estimated resources of earning and market area. On this basis, you can get loan for your business. With the help of project accounting, we can easily track the progress of a project. In business area there are large number of projects like Construction projects IT projects, Product development projects, RD projects, Organisation development projects, Logistics projects, Marketing projects, Community projects and Cultural projects.

Characteristics of a Project

1. any project will have a start date and end date

It is the main feature of project that it has a start date and end date. Because if we increase the time of completing of any business project, cost of project will increase. So, it is necessary to fix the time for completing any project.

2. Project For Results

All projects are made for getting some result. Projects are always completed and we get new thing after completing of project.

3. Projects differ from operations

Operations are different from project. Operations are day to day work and for this we can use operation costing but project is big plan for doing any major construction.

4. A project usually needs resources to deliver its results

With getting resources for completing project, it will be very tough to complete the project and bring result in the front of manager.

5. Major projects can be divided into subprojects

All major projects can be divided into subprojects. Suppose, you have to construct a building. For making building, you have to take subproject for digging the earth or make a structure according to the height of building.

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