Project Management Unit 1 Lecture 15 Social cost Benefit.ppt
- 1. DISCOVER . LEARN . EMPOWER INSTITUTE – University School of Business DEPARTMENT - Management M.B.A. Project Management – 24BAT 751 1 UNIT-1 Lecture 1.15 SOCIAL COST BENEFIT ANALYSIS
- 2. LEARNING OBJECTIVES & LEARNING OUTCOMES After studying this chapter, you should be able to have a basic understanding of : Social Cost Benefit Analysis
- 3. 3 Project Management 24BAT-751 CO Number Title Level CO1 To describe the basics of project management and project planning Understand CO2 To apply project evaluation techniques on real life business proposals Apply CO3 To analyze the risk involved in the internal and external project control management Analyze CO4 To enable students in evaluating the performance of the project through project information management system Evaluate CO4 To create network diagrams for project planning and scheduling Create Course Outcomes Will be covered in this lecture Will be covered in this lecture
- 4. Topic – 15 Social Cost Benefit Analysis 4
- 5. “Methodical and rational process of identifying, evaluating and assessing the benefits (outputs) and costs (inputs) associated with alternative activities which will effec tively accomplish economic targets and social goals.” •All the projects impose certain costs to the nation and produces certain benefits to the nation. •The cost may be of two types i.e. direct cost and indirect cost. •Two types of benefit i.e. direct benefits and indirect benefits. •A tool for evaluating the value of money, particularly of public investments in many economies. •Aids in decision making with respect to the various aspects of a project and the design programs of closely interrelated project. Social Cost Benefit Analysis Social Cost Benefit Analysis (SCBA) (SCBA)
- 6. • To reflect the real value of the project to the society, one has to consider the impact of the project on the society. • So when we evaluate the project from the view point of the society or the economy as a whole , it is known as Social Cost Benefit Analysis. • Social cost-benefit analysis is a systematic and cohesive method to survey all the impacts caused by an urban development project. • It comprises not just the financial effects (investment costs, direct benefits like tax and fees, et cetera), but all the social effects, like: pollution, safety, indirect (labour) market, legal aspects, et cetera. Social Cost Benefit Analysis (SCBA) Social Cost Benefit Analysis (SCBA)
- 7. • Government constructs a bridge in a very congested area. • Traffic will be reduced by a good amount in that area . • Other benefits like- well connected transport network, link to the main city development of transport system will lead to the growth of industries. • This will bring employment for the people residing in the surrounding areas. • Construction will require a large amount of investment, maintenance cost. • Toll taxes can be applied to recover the expenses related to maintenance • The costs associated with this project is huge. Costs and Benefits- Example Costs and Benefits- Example
- 8. Analysis of Projects Analysis of Projects
- 9. • Assessing the desirability of projects in the public as opposed to the private sector • Identification of costs and benefits • Measurement of costs and benefits • The effect of (risk and uncertainty) time in investment appraisal • Presentation of results – the investment criterion. Features of Social Cost Benefit Analysis Features of Social Cost Benefit Analysis
- 11. Social Cost is the cost to society as a whole from an action, project or policy change. Social benefit means the improvements attained in the living conditions of its beneficiaries that are directly attributable to the project. Social Benefits & Social Costs Social Benefits & Social Costs
- 12. Let Social Cost = C Social Benefit = B To evaluate the costs and benefits of the project and to proceed with it if and only if benefits match or exceed the costs. B> C or at least B=C. Essence of SCBA Essence of SCBA
- 13. • Contribution of project towards the fulfillment of certain social objectives which in turn is beneficial for the society like- employment, self sufficiency etc. • A great impact is created on the level of savings and investments in the society. • Provides economic benefits. • Creates an impact of the project on the income distribution in the society. Objectives of SCBA Objectives of SCBA
- 14. Scope of SCBA Scope of SCBA
- 15. • Gantt Group, 2003. Who was Henry Gantt? http://208.139.207.108/html/RGC-KO-04.htm • Gilbreth Network, n.d. Frank and Lillian Gilbreth Biographies. http://gilbrethnetwork.tripod.com/bio. • Tools and techniques for project management: Newton, R., Brilliant Checklists for Project Managers, 2nd Edition, Pearson Education, 2014 • Overview of project management methodologies: Newton, R., The Practice and Theory of Project Management, Palgrave MacMillan, 2008 • Chandra, Prasanna, Projects: Planning, Analysis, Selection, Implementation & Review, Tata McGraw Hill. • Clifford Gray & Erik Larson, Project Management, Tata McGraw-Hill. • Nicholas, John M., Project Management for Business & Technology (Principles & Practice), Pearson Education. 15 References References
- 16. Assessment Pattern 16 Components HT-1 HT-2 Assignment Surprise Test Business Quiz GD Forum Attendance Scaled Marks Max. Marks 10 10 6 4 4 4 2 40
- 17. THANK YOU 17