Project Formulation, Appraisal

and Mill Management

Berihun Bizuneh,
Ph.D., Department of Industrial Management,
National Taiwan University of Science and Technology, Taipei,
Taiwan
18/07/2011
Introduction to project management (PM)

Definitions from the Oxford English Dictionary

• Project:
‒ An individual or collaborative enterprise that is carefully planned to achieve a particular
aim
‒ A research project
‒ A government-subsidized housing development

• Management
‒ The process of dealing with or controlling things or people
‒ The managers of an organization
Definitions from PMBOK by the PMI

• Project: a temporary endeavor undertaken to create a unique

product, service, or result
‒ Expanding a tour guide service,

‒ Merging two organizations,

‒ Exploring for oil in a region,

‒ Constructing a building
• Project management: the application of knowledge, skills, tools,
and techniques to project activities to meet the project
requirements

• Effective project management helps

‒ Meet business objectives
‒ Satisfy stakeholder expectations
‒ Increase chances of success
‒ Respond to risks in a timely manner
‒ Manage change in a better manner
• Poorly managed projects
‒ Missed deadlines

‒ Cost overruns

‒ Poor quality

‒ Uncontrolled expansion of the project

‒ Unsatisfied stakeholders

‒ Rework
History of PM

• 1940s line managers used over-the-fence management to manage

projects

• 1950s to 1960s aerospace and defense industries used PM on all projects,

then construction companies followed

• NASA, Department of Defense

Benefits of PM

PM costs versus benefits (Kerzner (2017), Fig. 2.1)

Reading: details of benefits of PM
Foundational elements of PM

• Projects

• Programmes

• Portfolios

• Operations

 Reading: operations / management vs projects / management

Triple constraint

Time

Quality
Cost Scope
Phases of PM

Scoping the
Project
Developing
Adapted from Weiss, J.W., and Wysocki, R.K.
the Plan
1992. 5-Phase Project Management:
Launching
A Practical Planning and Implementation
the Plan
Guide. Reading, MA: Addison Wesley.
Monitoring and
Controlling
Closing out the
Project
 1. Scoping the project

‒ State the problem/ opportunity Project Scoping Form

‒ Establish the project goal Project Name Project Manager Team Members

‒ Define the project objectives Problem / Opportunity (Why do this project?):

‒ Identify the success criteria
Project Goal:
‒ List assumptions, risks, obstacles
Objectives (Specific, Measurable, Assignable), Duration? Cost?

Success Criteria (Outcomes):

Assumptions, Risks, Obstacles:

2. Developing the project plan

‒ Identify project activities

‒ Estimate activity duration

‒ Determine resource requirements

‒ Construct/ analyze the project

network

‒ Prepare the project proposal

3. Launching the plan

‒ Recruit and organize the project team

‒ Establish team operating rules

‒ Level project resources

‒ Schedule work packages

‒ Document work packages

4. Monitoring/controlling the project progress

‒ Establish progress reporting system

‒ Install change control tools/process

‒ Define problem-escalation process

‒ Monitor project progress versus plan

‒ Revise project plans

5. Closing out the project

‒ Obtain client acceptance

‒ Install project deliverables

‒ Complete project documentation

‒ Complete post-implementation audit

‒ Issue final project report

 Reading: project success factors

Thank you