PROJECT CLASSIFICATION

PROJECT CLASSIFICATION

There are three types of classification the project

1-      Replacement and modern organization decision
2-      Expansion decision
3-      Diversification decision

Replacement and modern organization decision

Our aim to improve operating efficiencies and to reduce cost and at the same time our aim is to reduce the cost. Generally all types of replacement and modernization are in the business requires the replacement either because of the economic life is over or because it has become technological outdated. The formal decision is known as replacement decision and later is known as modernization both the decision are called cost of reduction decisions

Expansion decision

The expansion decision are aimed to meet the increase demand of the firms product to import production facility and to increase market share of exiting product

Diversification decision

These decision required evaluation of proposal diversified into new product life. Reducing the risk of failure by dealing in different production one by operation in several market

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