Chapter 1 Project Introduction

Chapter 1: Project
Introduction
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Project definition
• A project is time-framed efforts which is within a program as an
undertaking with a scheduled beginning and end and which normally
involves some primary purpose.
• A project is any new structure, process or system, the repair or

rehabilitation of an existing one. A series of interrelated actions that lead
to a defined objective. An investment of resources leading to that goal.
Project within a system
Family tree of a project
• System (Plan)
• Program
• Project
• Package
• Task/Sub task
• Activities
Project Characteristics
• Specific objectives and goals
Projects are meant to fulfil certain objectives and goal of a programme or a plan.
• A time frame for completion

a project is not a continuous process. It must have a start and a finish date.
• Temporary Organisation and team

Project being of temporary existence with certain start and finish date, the organization and team who are responsible for the completion of a
project is also of temporary nature. The team composition will also be different at different stages of a project and after the completion of the project
the team has to disperse if there is no other project of similar nature.
• Rapid expenditure
projects come up in the form of investment for better return. Hence, the level of expenditure is very high compared to the plan or program of
permanent nature.
• Demanding time scale

The objectives and goals to be fulfilled by a project can be better materialized if the project is ready in all respect for operation, within certain
date fixed at the very initial stage of a project. Hence, the duration of a project is fixed and the job is to be completed within that time frame may need a
very tight work schedule.
• An involvement of several people and numerous collaborating organization

suppliers, designers, contractors, experts of different discipline etc.
Project characteristics
• A limited set of resources – 4M (material, money, manpower and machine)

• Uncertainty and financial risks
• No benefit for a client until project is in operation
• Sequencing of activities and phases.
• Changes during implementation
• High level of subcontracting
• Uniqueness – no two projects are
Project Classification
Funding
• Private sector project
• Government sector project
• Grant projects
• Loan projects
• Local resources Projects
• Foreign aided project
• Joint venture project
• Bilateral project
• Multilateral project
• Techniques
• Labor intensive project
• Capital intensive project
• Functions
• Disaster prevention projects
• Development projects
• Service sector projects
• Environment friendly projects etc.
• Orientation
• Product oriented
• Process oriented
• Scale and size
• Mega
• Major
• Medium
• Small
• Nature of project
• Simple
• Complex
• Innovative
• Emergency
• Time frame and speed
• Normal
• Crash
• Emergency relief
Project objectives and goal
The time spent on setting goals would pay off through project success.
Goals are purpose and mission for initiating a project.
• Goal setting is:
• To fix a target
• to create commitment and agreement about the goal
When to set goals?, and for whom?
Goals are to be set;
• At the start of a project
• At the start of next phase of planning
Project objectives and goal
Goals are to be SMART
S- Specific i.e. well defined and clear
M- Measurable. Should be able to measure during implementation. Some goals are easy to
measure and some are difficult.
A- Agreed upon by the team members. Agreed goals raise the sense of commitment and are
easy to implement and change, if necessary.
R- Realistic. Possible under given resources, experience, knowledge and time available.
T- Time framed. A start and a deadline.
Develop the project goal and make sure it is clear and SMART.
Communicate it to all team members and keep the goal constantly out in front of concerned people.
Objectives of project
Objectives:
• Objectives resembles the goal. While selecting the objectives SMART criteria is equally valid, but with
clear division of responsibility of each member in the team. Objective defines the role of each team
member’s contribution to the overall project goal. Goal and objectives are interchangeable terms.
Problems associated with setting goals and objectives
• To much of detail or too less information

• Reward/control system – people do what manager inspects and not what the manager expects.
• More responsibility but not enough authority or vice versa
Project phases, project life cycle
Major project phases:

• Development planning – company and market strategy
• Feasibility study – design options and cases
• Conceptual study – case selection and optimization
• Project planning – project execution and contract planning, work scope definition
• Design and procurement
• Construction
• Commission and start up
• Defects Liability Period – warranty period
Project Phases
The above phases can be divided into four major phases
• Formulation (conceptual) phase

• Development planning phase
• Implementation phase
• Termination phase
Overall project cash flow
investment Return
cost
Time
Breakeven
sanction
conceive completion
Project life cycle
• Demand
• Identification
• Feasibility studies and appraisal
• Negotiation and sanctions
• Design
• Implementation – construction
• Commission
• Operation
• Monitoring and evaluation
• Decommission
Project Environment
The project environment is made up of internal and external factors that
influence a project. When managing a project, the project manager must
consider more than just the project itself. Proactively managing a project
involves understanding the environment in which the project must function.
• Internal – Project Team (roles and responsibility) and project owner
• External – end users, customers, social groups, suppliers (manage –
communicate benefit, involve in planning, identify need and expectations
and try to meet them)

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Chapter 1: Project

• A project is any new structure, process or system, the repair or

• A time frame for completion

• Temporary Organisation and team

• Demanding time scale

• An involvement of several people and numerous collaborating organization

• A limited set of resources – 4M (material, money, manpower and machine)

Problems associated with setting goals and objectives

• To much of detail or too less information

Major project phases:

• Formulation (conceptual) phase

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