Project Formulation: Project formulation is defined as the development of the project from the generated idea of the firm. Project formulation includes the total procedures or activity of altering the project concept, theme etc. from intuitions based to an institutional based and rational based to result feasible work form. It is also defined as the detail procedure of analyzing the feasibility of any specific project. So various factors are taken into consideration to test the viability of the proposed project. It plays the dominant role in the success of the project.

The project team is in charge of executing the project formulation. Project formulation have clear dependencies and are done following the same sequence in each project. Project formulation are independent from the area of application approaches. This process consider the multidimensional nature of formulation.

Project formulation task defines the parameters of the proposed project and develops the objectives and outputs of the project in broad terms. It also aims at gaining preliminary formal commitment to the project and the project idea to justify the further work on it. It also serves at the basis of project planning.