Project levels & its classifications
A project is an economic activity with a well-defined objective with certain durations and gains to entrepreneurs hence project cannot take place at a single level it is classified majorly at 3 different levels.
1. National Level
These are formulated by a government. The government decides the priority level so as to develop the economy & according to that major and minor projects are conducted.
The basic objectives of government projects are as follows
- To boost the employment.
- To increase the export.
- To raise foreign capital for Eg SEZ.
- To support present investors in business activities for eg Infrastructure projects like airports, roads, Education project, Polio eradication project etc.
2. Sector Level
Here priority sector is determined by the government to develop this priority sector they undertake various projects like power projects, Creation of IT parks, Construction of dams for the agriculture sector. In a case of an organization, the project may be related to quality, modernization, development of employees, Diversification.
3. Project level
Here individual project are identified in this project actual requirement of finance, HR, Location techniques, a requirement to run a single project.
For eg Construction of IT park, quality certification for 6 sigmas, ISO.
Classifications Of project
A project has been classified in various ways.
1.Quantifiable and Non-quantifiable
Here projects can be divided into two broader categories namely quantifiable and non-quantifiable.In a quantifiable project, it is possible to measure the end benefits or outcomes of the end benefits or outcome of the project. Whereas in non-quantifiable end result cannot be calculated properly.
2 Sector Project
The Planning Committee of India has classified project for a various sector.
- Agriculture sector.
- Irrigation & Power.
- Transport & Communication.
- Social Services.
3. Techno-Economic Project
Here project is classified on basis of technology & Economic Characteristics.
a) Factor intensity oriented classification
In this category, projects are either capital intensive or labor intensive depending upon their size & investment pattern.
For eg: IT project or service rendering project is labor intensive depending on their size and investment pattern.
In this category, projects are based on either availability of raw material or demand for that project.
For eg- Power project required, abundant water, steel plant required iron ore as raw material.
C. Magnitude oriented classification
Here size of investment is considered depending on the investment. A project can be classified as.
-tiny unit investment to 25 lakhs.
– Small-scale unit investment up to 1 crore.
-medium scale enterprise investment up to 5 crores or more.