Meaning of Project Report
The project report is a document that contains all information regarding the proposed project. It is served as a blueprint of all operations to be undertaken for attaining the desired results. The project report is basically the business plan of action and clearly describes its goals and objectives. It is one that helps in converting the business idea into a productive venture without any chaos or confusion as it defines strategies for project execution.
Information from various aspects like technical, financial, economic, production and managerial are together constituted in project report for better understanding. It describes all inputs required for the accomplishment of a project so that they can be arranged accordingly at the right time.
The project report is an essential tool available with management for proper monitoring of operations and helps them in recognizing any problems. Managers through project reports are able to estimate all costs of operations and possible profitability of the proposed project.
Characteristics of Project Report
- Scope: The project report gives a clear picture of what is to be done or to be achieved. It describes the goals of the proposed project and activities to be undertaken for achieving these goals.
- Resource: It shows the means or resources required to meet the desired scope. Project report serves as the roadmap which tells the direction in which business should go for attaining its goals.
- Time: The project report denotes the standard time required for the completion of each and every task of the proposed project.
- Quality: The project report explains the desired standards to be achieved by the completion of all tasks. Limit of deviations that can be accepted from these defined standards are also contained in this report.
- Risk: Risk is an unavoidable factor associated with every business and needs to monitored properly. The project report considers all risk factors that may arrive at the completion of the proposed project and also tells the ways for recovering from these factors.
Need and Objectives of Project Report
- Selecting Best Investment Proposal: Project report is an efficient tool for analyzing the status of any investment proposal. It shows the expected profitability and risk associated with the project and this way helps in choosing the best option.
- Approval of Project: It is essential for registration or approval purposes of the proposed project. Different authorities like District industries center, Directorate of industries, government departments, etc. require project reports for giving approval.
- Tracking: The Project report assists in tracking the current activities of the project. It helps team members and other stakeholders to check the project progress from time to time and helps in finding out any deviations against the original plan.
- Visibility: Another important advantage of having the project report is that it gives full insight into the project. It gives a clear description of activities to be undertaken and avoids any confusion or disorder.
- Risk Identification: Identification of risk is a significant step for the completion of every project. The project report enables in spotting the risk early and taking all corrective actions timely.
- Cost Management: Project report helps in managing the expenses through regular reporting of all activities. It sets the standard cost of every operation in advance and helps in finding out any deviation in these costs through tracking of the project.
- Financial Assistance: It is an important tool for availing financial assistance from financial institutions or fund providers. The project report enables financial institutions in judging the profitability of the proposed project and then takes the decision accordingly for approving the funds.
- Test Business Soundness: Project report helps in testing the profitability and soundness of the proposed project. It tells the total estimated costs, possible income and risk associated with any proposal.