CHAPTER ONE

INTRODUCTION TO PROJECT

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 1.1. Definition of a Project
 According to Gittinger (1982), a project is defined as a
complex set of activities where resources are used in
expectation of returns and that lend itself to planning,
financing, and implementation as a separate unit.

It is temporary endeavor undertaken to create a unique product

or service.

 A project is a proposal for an investment to create, expand

and/or develop certain facilities in order to increase the
production of goods/services/ during a certain period of time
in a community, region, country, market area and/or certain
organization (firm, public organization, NGO, etc. )
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 1.2. Characteristics of a project
 The fundamental nature of a project includes
1. Uniqueness: Uniqueness means the non-repetitive
characteristics of projects.
2. Temporary nature: Temporary nature is characterized by
each project having a defined start and end point.
3. Uncertainty: Since projects are executed assuming specific
conditions and situation, the achievement of their missions
is attended by uncertainty
4. Progressive Elaboration and Life Cycle: Project
management is a group of interrelated processes,
implemented in a progressively elaborative manner, in
which to produce the deliverable. Progressive elaboration is
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the revealing and focusing of details through time.

5. Specific Purpose/Objectives and customer: A project is
usually a one-time activity with a well-defined set of desired
end results.

6. Resources investment for the future: A project involves

the investment of scarce resources in the expectation of
future benefits.

7. Single Entity: A project can be planned, financed and

implemented as a unit. Often projects are the subject of
special financial arrangements and have their own
management.

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 1.3.Project Parameters
During a project's life, management focuses on three basic parameters: quality, cost, and time.

Traditionally, it is said that a successfully managed project is the one that is completed at the
specified level of quality, on or before the deadline, and within the budget.

In general, each of the parameters is specified in detail during the planning phase of the
project. These specifications then form the basis for controlling the project during the
implementation phase.

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 1.4. Classification of Project
 Projects can be categorized according to type of activity,
location, time, ownership, size and need.

 According to Type of Activity: Under this category, projects

can be classified as industrial and non-industrial projects

 According to Location: Location wise, projects can be

categorized as national and international projects.

 According to Completion Time: Projects under this category

can be divided into two types as normal and crash projects.

 According to Size: Based on size, there may be three

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categories of projects- small, medium and large.

 According to Ownership: Projects under this category
can be grouped into public, private and joint sector
projects
 According to Need: Based on the need for the project,
projects can be classified as new balancing, expansion,
modernization, replacement, diversification, backward
integration and forward integration projects

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 1.5. Reasons for establishing projects
 The reason for establishing projects can be fall into two
broad categories:
A. To exploit opportunities
 Projects may be established to exploit opportunity such as to
get into a new market, to offer a better service to customers,
to introduce a new capability etc.

B. Solve a problem
 Possibly some equipment is not meeting service
requirements, or some process is not as efficient as desired,
or does not produce the customer satisfaction it should, etc.
Identify problems using problem analysis tree (showing
problems and consequences at various levels).
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 1.6. Projects and Programs
 A project, in this regard, refers to an investment activity
where resources are used to create capital assets that produce
benefits over time, having a beginning and an end, and
specific objectives pursued;
 Where as, a program is an on-going development effort or
plan. A program is, therefore, a wider concept than a project.
 For instance, a health program may include
ƒ A water project as well as construction of a health center;
 ƒBoth are aimed at improving the health of a given
community that previously lacked easy access to these
essential facilities.
 Projects that are not linked with others to form a program,
however, are sometimes referred to as “Stand-Alone"
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projects.
Differences
Projects Have: Programs Have:
Specific objectives General objectives
Specific projects area (location) No specific area (location)
Specific beneficiaries group No specific beneficiaries group
Clearly determined and allocated funds No clear and detailed financial resource
allocation
Specific lifetime No specific lifetime

Projects and programs have similar characteristics in that both are:

• Having objectives;
• Requiring financial, human, material, and other inputs (or resources);
• Generating outputs of value (i.e. goods/services);
• Serving as instruments for the execution of development plans and attain national goals.
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 1.7. Project Management
 Project management is the supervision and control of the
work required to complete the project vision.
 Project management is the process of the application of
knowledge, skills, tools, and techniques to project activities to
meet project requirements.
 That is, project management is an interrelated group of
processes that enables the project team to achieve a successful
project.
 Project management is the process of guiding a project from
its beginning through its performance to its closure.

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 Project management includes three basic operations:

 Planning: Specifying the desired results, determining the

schedules, and estimating the resources

 Organizing: Defining people’s roles and responsibilities

 Controlling: Reconfirming people’s expected

performances, monitoring actions and results, addressing
problems, and sharing information with interested people

Successfully performing these activities requires:

Information, Communication and Commitment.
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The project management Process Groups
The project management process groups are initiating,
planning/designing, executing, monitoring and controlling, and
closing.

 Initiating defines and authorizes the project or a project phase.

 Planningdefines and refines objectives and plans the course of

action required to attain the objectives and scope that the
project wants to address.

 Executing integrates people and other resources to carry out

the project management plan for the project.
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 Monitoring and controlling regularly measures and
monitors progress to identify variances from the project
management plan so that corrective action can be taken
when necessary to meet project objectives.

 Closing formalizes acceptance of the product, service, or

result and brings the project or a project phase to an orderly
end.

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END OF CHAPTER ONE

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