Classifications of Project
Based on Ownership
Based on Investment
Based on Research on academia
Based on Sector
Based on Objective
Based on Nature
Based on Time
Based on function
Based on Risk Based on Investment Decision
Based on Output
Based on Techno- Economic Characteristics
Based on Financial Institution Classification.
Based on ownership
a) Public Projects: These are the projects which are done by public projects. E.g. Construction of Roads & Bridges, Adult Education Programs, etc.
b) Private Projects: These are the projects which are undertaken by private enterprises. Eg. Any business related projects such as a construction of houses by real estate builders, software development, marriage contracts, etc.
c) Public Private Partnerships: These projects which are undertaken by both government and private enterprises together. E.g., Generation of Electricity by Windmill, Garbage Collection, etc.
Based on investment
a) Large Scale Project: These projects involve a huge outlay or investments, say, crores. Eg. Real Estate Projects, Road Construction of manufacturing facilities, Satellite sending projects of ISRO, Unique Identification Number project of India, etc.
b) Medium Scale Project: These projects involve medium level investment and are technology oriented. Example: Computer industry and electronic industry.
c) Small Scale Project: These projects involve only a lesser investments. E.g., agricultural projects, manufacturing projects.
Based on research on academia
a) Large Scale Project: These projects involve a huge outlay or investments, say, crores. Eg. Real Estate Projects, Road Construction of manufacturing facilities, Satellite sending projects of ISRO, Unique Identification Number project of India, etc.
b) Medium Scale Project: These projects involve medium level investment and are technology oriented. Example: Computer industry and electronic industry.
c) Small Scale Project: These projects involve only a lesser investments. E.g., agricultural projects, manufacturing projects.
Based on sector
a) Agricultural Projects: These are the projects which are related to agricultural sector like irrigation projects, well digging projects, manuring projects, soil upgrading project, etc
b) Industrial Projects: These are the projects which are related to the industrial manufacturing sectors like cement industry, steel industry, textile industry, etc. For example, technology transfer project, marketing project, capital issue project like IPO, etc.
c) Service Projects: These are the projects which are related to the services sectors like education, tourism, health, public utilities, etc. For example, adult literacy project, medical camp, general health check up camp, etc.
Based on objective
a) Commercial Projects: These projects are undertaken for commercial purpose and return on investment is expected out these projects. For example, Toll roads based on BOLT – Build Own Lease Transfer Model or BOOT – Build Own Operate and Transfer Model, Product Launching project.
b) Social Projects: These projects are undertaken for social purposes and welfare of the people is the aim of these projects. These projects are undertaken either by the Government or Service oriented Non- Governmental Organizations. For example, Polio immunization Project, Child Welfare Projects, Adult Literacy Projects, etc.
Based on nature
a) Conventional Projects: These projects are traditional projects which do not apply any innovative ideas or technology or method. For example, conventional irrigational projects, handicraft projects, etc.b) Innovative Projects: These projects involve the use of technology, high R&D, development of new products and services. These innovative projects can be further classified into
ü Technology
ü Research New Product Development.
Based on time
a) Long term projects: These projects take a very long duration complete. These projects are run for many years till the objective reached. For example, Eradication of diseases like Polio, Filaria, etc.
b) Medium term projects: These projects take a medium term duration like 3 to 5 years. For example, Modernization projects, computerization of operations, etc.
c) Short term projects: These projects are executed within a short period, normally within a year. For example, Pond cleaning project, health camps, software development, etc.
d) Very short term projects: By very name you can understand that these projects are completed within a very short period, say, within a day. For example, product launch project.
Based on function
a) Marketing Projects which are taken up in the area of marketing a product or service of an organization. Marketing road shows, implementing a marketing strategy, etc.
b) Financial Projects are undertaken to raise finance or restructure capital structure. For example, IPO Project, share split project, etc.
c) Human Resources Projects are undertaken in the area of human resources of an organization, e.g., Induction training project, campus recruitment project, etc.
d) IT and Technology Projects which are undertaken in the area of IT companies or IT related requirement of any organization, e.g., development of Human Resources Information System, Marketing Information System, etc.
e) Production Projects are undertaken in the area of production or operations. For example, overhauling projects, preventive maintenance projects, getting an ISO certification, etc
f) Strategic Projects are taken by the organizations to executive a strategy, for example, mergers and acquisition projects, Core Banking Solution project introduced in banks, etc.
Based on risk
a) High Risk Projects: These projects involve a very high degree of risk, for example, nuclear energy project, thermal energy project, satellite projects, etc. If the project is not handled properly, the effect will be very adverse. Thus, high precautionary measures are to be taken to commission these projects.
b) Low Risk Projects: These projects do not involve risk and they are carried out in the normal course of action. For example, road and bridge construction, house construction.
Based on investment decision
a) Independent Projects: An independent project is one, where the acceptance or rejection does not directly eliminate other projects from consideration or affect the likelihood of their selection.
b) Mutually exclusive Projects: The mutually exclusive projects are projects that cannot be followed at the same time. The acceptance of one prevents the substitute proposal from accepting. Most of them have ‘either or’ decisions.
c) Contingent Projects: A contingent project is one where the acceptance or rejection depends on the decision to accept or reject multiple numbers of other projects.
Based on output
Based on output, projects are classified into quantifiable and non-quantifiable ones.
a) Quantifiable projects: In these projects, the benefits / goals of which are amenable for measurement. Quantitative expression of the outcomes is possible. It is easy to understand and appreciate quantitative projects as it is easy to communicate them. For instance, enterprises engaged in the production of various goods and services come under this category.
b) Non-quantifiable projects: In these projects quantification of the benefits / outcome may not always be possible as the impact of the project is spread over a longer period. The benefits accrue to the intended beneficiaries in the long run. Projects concerning health, education, and environment fall under this category.
Based on techno- economic characteristics
Based on the technology intensity, size of the investment, and scope of the project, projects are also classified as techno-economic projects.
a) Factor Intensity Projects: It is anybody’s knowledge that some projects are capital intensive while some are labor intensive.
b) Causation-Oriented Projects: The availability of a particular raw material in abundance in a particular region could be the reason for conceiving projects at times.
c) Magnitude Oriented Projects: Based on the size of the project, projects may be classified under large, medium and small scale projects.
Based on financial institution classification
Financial institutions – both central and state level have classified projects into profit-oriented projects and service-oriented projects.
a) Profit-Oriented Projects: They are classified into a) New Projects; b) Expansion Projects or Development projects; c) Modernization Projects or Technology Projects and d) Diversification Projects.
b) Service-Oriented Projects: They are classified into a) Welfare Projects; b) Service Projects; c) Research and Development Projects and d) Educational Projects.
