Once the concept is fully discussed, understood and finalized, the preparation of the Project report commences. They will generally be in the following order:
Ø Chapter-1: Introduction to the proposed Organization. The concept, the activities so far involved by the firm and where the new site has been suggested. Topography of the area. Climate and total area in which the Organization will be set up.
Ø Chapter-2: Owners or Promoters of the project, their background and professional qualifications, experience, etc. If need be it will also show the designated personnel names with details as above. (This chapter will form part of the Project report if it is meant for submitting as document for financial assistance or Bank Loans)
Ø Chapter-3: Over view of the Organization i.e What the Organization propose to manufacture* or activities* engaged in. If it is an manufacturing unit, the detail on the annual capacity will be indicated. (*Depending on the Project report any one of the following will be explained in detail in the report)
(a) Manufacturing parts or machineries and equipments.
(b) Product competitive one for those already available in the market
(c) Manufacturing machineries and equipments along with service centers.
(d) Ancillary unit for some other manufacturer
(e) Multiplant firm to manufacture more than one product
(f) Single plant firm to manufacture specialized product
(g) Engineering firm to render Assistance to others with men and material.
Ø Chapter-4: Total guestimated cost of the Organization proposed (Approx) which may include cost of construction of the entire building with building plan. The Blue prints of the building and plant drawings, dimensions of each area, location of machineries and equipments etc will also form part of this Chapter, though they may have been attached as Annexures to this Chapter. It will also list out the Power requirement, Water requirement, self Power generation needed etc. The actual cost will be known only after the Project report is accepted in toto or modified with omissions and commissions in respect of machineries and equipments are finalized which again will have bearing on the man power requirement. Therefore the cost factor will have certain degree of +/- variation in the Project report.
Ø Chapter-5: Taking into consideration the structure of the Organization, the infrastructure facilities like that of the nature of Equipments, Plant & Machineries, Premises needed will be projected. The specifications and designs of the Plant and machineries will also form part of this Chapter. The annual production capacity will also be indicated based on the nature of Machineries and equipments with their optimum capacity proposed to be installed. Though the specific machineries and equipments may not be suggested, in some cases the specific machineries to be procured (not specific manufacturer) will be indicated* ( * if it is meant for submitting as document for financial assistance or Bank Loans) based on technical quotations coupled with budgetary offer on price.
Ø Chapter-6: Manpower commencing from the head to downwards like Managers, manpower with professional background and expertise, workmen and others to manage and operate the plant.
It may give suggestion on :
a) Man power required based on nature of machineries and equipments suggested.
b) If it is pre determined to go for particular type of machineries and equipments then the actual requirement will be suggested.
c) The duties and responsibilities of Managerial and clerical staff will be suggested. The brief duties of each group is separately indicated. This chapter could also be modified if necessary by the owners/promoters of the Organization in consultation with the Project coordinators.
Ø Chapter-7: Plant working in detail – proposed ( No of shifts/ overtime working etc )
Ø Chapter-8: Targeted plant capacity and output. Per annum and minimum per day on each machine.
a) First year
b) Second year
c) Subsequent years
Ø Chapter-9: Samples preparation to describe the quality. The methodology and quantity.
a) To be done after setting up plant
b) To be developed outside prior to commencement of production
c) Not necessary
Ø Chapter-10: How the required Raw Material for the proposed plant could be procured. The report may suggest various options in detail like the ones shown below. The narration may include the specific sources of availability.
a) By indigenous sources
b) International sources
c) Both sources
Ø Chapter-11: Cost analysis for pricing.
Next we will see certain tabulated data in connection with the Project Reporting including cost analysis.
perfect Project reporter would have done well balanced research and
home work on several aspects concerning the business proposal which he
Analysis of the product proposed to be manufactured which may include the following:
a) Status of market for the proposed product, the chief players in the field etc
b) The annual consumption of the product proposed to be manufactured
c) Whether major part of the product is export oriented or consumed indigenously.
d) What is the market potential- Region or Area wise
e) The best and the medium level quality of the said product floating in the market
f) The market demand and supply position
g) Price structure of the product.
h) Price structure of the machineries and equipments needed for the said product
i) The availability of Power and water in the area being suggested.
j) The behavior of labour and Govt machinery, especially the local administration.
k) Whether the land to be acquired will be undisputed and free from litigation
l) Supply network and marketing limitations