Project Levels & 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 the 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 employment.
- To increase export.
- To raise foreign capital for Eg SEZ.
- To support present investors in business activities for eg Infrastructure projects like airports, roads, Education projects, Polio eradication projects, etc.
2. Sector Level
Here the priority sector is determined by the government to develop this priority sector they undertake various projects like power projects, the Creation of IT parks, Construction of dams for the agriculture sector. In the case of an organization, the project may be related to quality, modernization, development of employees, and Diversification.
3. Project level
Here individual projects are identified in this project’s actual requirement of finance, HR, Location techniques, and a requirement to run a single project. For eg Construction of an IT park, quality certification for 6 sigmas, ISO. A project has been classified in various ways.
Classification of the project is as follows
1.Quantifiable and Non-quantifiable
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 outcomes of the project. Whereas in the non-quantifiable end, the result cannot be calculated properly.
2 . Sector Project
The Planning Committee of India has classified projects for various sectors.
- Agriculture sector.
- Irrigation & Power.
- Transport & Communication.
- Social Services.
3. Techno-Economic Project
Here project is classified on the 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: an IT project or service rendering project is labor-intensive depending on its size and investment pattern.
b) Cause-oriented
In this category, projects are based on either the availability of raw materials or demand for that project. For eg- A power project required, abundant water, steel plant required iron ore as raw material.
C) Magnitude-oriented classification
Here the size of an investment is considered depending on the investment. A project can be classified as a tiny unit investment of 25 lakhs Small-scale unit investment of up to 1 crore. medium-scale enterprise investment up to 5 crores or more.
