Project management

CHAPTER ONE

1. INTRODUCTION TO PROJECT AND PROJECT MANAGEMENT

After completing this unit, students will be able to:
 understand the meaning and definition of project,
 explain the features of project,
 Narrate projects and plans
1.1 Meaning and Definition of Project

What is a project?

There is no one comprehensive definition for a project.

Its definition varies from author to author, from organization to organization, and based on the
nature, objective and other characteristics of the project. As a result youmay find several
definitions of a project in the literature.

As a working definition, several authors have provided various definitions of a project.

 Little and Mirrlees (1980) describe project as any scheme or part of a scheme, for
investing resources, which can reasonably be analyzed and evaluated as independent unit.
 In relation to agricultural activities,Gittinger(1982) defined project as a whole complex of
activities in an undertaking that involves uses of resources to gain benefits. A project is a
temporary endeavor undertaken to create a unique product, service or result (PMI, 2004).

 Project is a unique process intended to achieve target outcomes (Zwikael and Smyrk,
2009).

 The World Bank: defined it as “capital investment to develop facilities to provide goods
and services”.

A major misconception about a project is relating it to only construction or creation of such

physical facilities as buildings, roads and dams.

 However, project may involve intangible things such as

 creation of awareness (e.g. about HIV/AIDS),

 eradication of diseases (e.g. polio vaccination),

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 combating harmful practices (e.g. genital mutilation) and

 Capacity building (e.g. training to enhance service delivery capabilities of

public sector employees).

 Thus, projects may range from:

 physical or technical (construction of physical facilities)

 Nonphysical (dealing purely with behavioral aspects of an organization).

 mixed (involving both physical and nonphysical things)

A project is seen primarily as a planning process, which uses one or more scarce resources
during a specific time for the purpose of producing some economic returns or output at a later
date.
A project is a capital investment to develop facilities to provide goods and services (Bierman
and Smidth, 1970).
A project according to UNIDO Manual (1972), involves the utilization of scarce or at least
limited resources in the hope of obtaining in return some benefits over a long period.
A project is also seen as an optimum set of investment oriented actions by means of which a
defined combination of human and material resources is expected to cause a determined amount
of economic and social development.
Aproject in another sense can consist of a set of coordinated activities to bring into existence
something of value and the utilization of resources to produce value or benefits at a later date
A project may be described as a discrete investment activity, with a specific starting point and a
specific ending point, intended to accomplish specific objectives.
Project comprises a well-defined sequence of investments, which are expected to result in a
stream of specific benefits over time.
A project is “a unique endeavor to produce a set of deliverables within clearly specified time,
cost and quality constraints”.
A project is a temporary effort to create a unique product or service. Projects usually include
constraints and risks regarding cost, schedule or performance outcome.
A project is a temporary organization of related tasks set up to deliver one or more products.

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A project is an investment activity where we expend capital resources to create a producing asset
from which we can expect to realize benefits over an extended period of time.
A project is an activity on which money is spent in expectation of returns and which logically
seems to lend itself to planning, financing and implementation as a unit.

A project is also defined as a proposal for an investment to create, expand and develop certain
facilities in order to increase the production of goods and services in a certain period of time.
Furthermore, for evaluation purposes, a project is a unit of investment, which can be
distinguished technically, commercially and economically from other investments.
1.2 The Triple Constraint
A project is “a unique endeavor to produce a set of deliverables within clearly specified time,
cost and quality constraints”.
Thus every project is constrained in different ways by it’s:
 Scopegoals: What work will be done?
 Time goals: How long should it take to complete?
 Cost goals: What should it cost?
It is the project manager’s duty to balance these three often-competing goals.

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The general rule is that project goals should be SMART – an acronym for:
 Specific – well defined and clear to anyone that has a basic knowledge of the project,
 Measurable – how do we know how far away completion is and when it has been
achieved,
 Action-oriented– indicate what should be done to achieve the objective,
 Reliable/achievable – do we have the resources (human, financial, material,
information, time) to make the goal happen? Is the objective achievable with the
available resources and timeframe, and
 Time-based – itshould identify a definite target date for completion and/or
frequencies for specific action steps that are important for achieving the goal
on/within a specific time period.
1.3. Features of a project

Regardless of its type and complexity, a project can be more explained in terms of its
characteristics.

1. It is Unique

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2. Definable objective

3. defined timescale

4. Defined budget

5. Involves risk

6. It is temporary

7. It has life cycle

1. Each project is specific and unique:

A project is considered to be a unique endeavour in various terms including its size,

complexity, duration, timing, location, stakeholders, design, objective and other several
variables. A project is a one-time activity, never to be exactly repeated again. They do not
involve repetitive processes. Every project undertaken is different from the last, whereas
operational activities often involve undertaking repetitive (identical) processes

2. Project involves a definable objectiveusually specified in terms of cost, schedule, and

performance requirements.

3. Projects have a defined timescale: Projects have a clearly specified start and end date within
which the deliverables must be produced to meet a specified customer requirement

4. Projects have an approved resource and budget: Projects are allocated a level of financial
expenditure within which the deliverables must be produced to meet a specified customer
requirement

Reasons for Project Failure

There are many causes of project failure and every failed project will have its own set of issues.
But there are common reasons for project failure.

1. Inadequate project planning (budget, schedule, scope)

2. Lack of executive commitment

3. Lack of linkage to the business strategy

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4. Wrong team members

5. No measures for evaluating the success of the project

6. Inadequate risk management

7. Inability to manage change (inflexibility)

Why Do Projects Succeed?

1. Sound project planning and management processes

2. Project tied to the organization’s business goals

3. Senior management commitment

4. Good change management

5. Realistic schedule

6. Good stakeholder relationships

7. Skilled and appropriate team members with defined roles and responsibilities

1.4 Project Management

Project management is “the application of knowledge, skills, tools and techniques to project
activities to meet project requirements.

Project Management is the skills, tools and management processes required to undertake a
project successfully”.

Project management is a set of principles, practices, and techniques applied to lead project teams
and control project schedule, cost, and performance risks to result in delighted customers.

It is a temporary endeavor that involves management functions to achieve certain pre-defined

objectives.

Project management involves a series of management techniques and processes required to

monitor and control time, cost, quality and scope of projects. Project Management comprises a
set of skills. Specialist knowledge, skills and experience are required to reduce the level of risk
within a project and thereby enhance its likelihood of success.

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Project management is the discipline of planning, organizing, directing, and controlling resources
to bring about the successful completion of specific project goals and objective.

All the management functions are required to effectively and efficiently manage resources
required to complete the project

Project planning:

 Project planningis part of project management, which relates to the use of schedules such
as Gantt charts to plan and subsequently report progress within the project environment.

 It is looking ahead and charting out future course of operation for projects

 Formulation of Objectives, policies, procedure, rules, schedules and budgets

 Project Plan: is "A formal, approved document used to guide both project execution and
project control.

 Is alternatively defined as “a statement of how&when a project's objectives are to be

achieved, by showing the major products, activities and resources required on the project.

At a minimum, a project plan answers basic questions about the project like:

 Why? - What is the problem or value proposition addressed by the project? Why is it
being sponsored?

 What? - What is the work that will be performed on the project? What are the major
products/deliverables?

 Who? - Who will be involved and what will be their responsibilities within the project?
How will they be organized?

 When? - What is the project timeline and when will particularly meaningful points,
referred to as milestones, be complete?

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