UNIT ONE

INTRODUCTION

FUNDAMENTALS OF PROJECT MANAGEMENT

1
Overview of Project
Management

2
 Reflection
What is a Project?

What characteristics do
projects have?

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 Introduction

Projects exist in every sphere of business, markets, and industry.

They come in a myriad of types, sizes and complexity –

◦ from small initiatives such as weddings, parties, fundraising to
◦ medium-size initiatives such as advertising campaigns, capital
acquisitions, business re-engineering, restructuring, information
systems; through to
◦ mega-projects such as NASA space station, hydro-electric dams and
military campaigns.

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A project is:
A temporary endeavor involving a connected
sequence of activities and a range of resources,
which is designed to achieve a specific and unique
outcome, which operates within time, scope, cost
and quality constraints and which is often used to
introduce change

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 Key concepts:
Purpose-the basic reason for the existence of a project-
to solve a problem, address a need or take the advantage
of opportunity.

Temporary: means that a project is something that has a

specific start date and a specific end date.
 The end is reached when the project’s objectives have been achieved and effectively
handed over to the business

Sequences of Activities: the works and the steps we perform and the
methods and knowledge we use to achieve the project objective.

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Unique Outcome:

◦ The product or service is different in some distinguishing way

from all other products or services within an organization
◦ Projects are a means to respond to those requests that cannot be
addressed within the organization’s normal operational limits.
◦ Identifying and focusing on uniqueness is important to project
management.
◦ It helps identify new organization risk areas, enabling
management to develop and implement timely risk management
strategies.

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Resources: A project utilizes a variety of resources
[human, financial, material, information, etc] to carry out the
activities or tasks.
Scope- the extent of the problem or opportunity that the
project needs to address.
Organization: is vital to coordinate resources to achieve
the project objectives- organizations can be public,
private or NGOs.

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Time: any project should be time bounded-it has a start
and end time
Cost: activities consume human, financial and material
resources.
Quality: the project needs to produce quality products
to maximize the satisfaction of the users.
Introduce change: A project is often used as an
instrument for change - change for the betterment of
the society.

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 1.2. Characteristics of project

◦ Has a unique purpose.

◦ Is temporary.
◦ Is developed using progressive elaboration.
◦ Requires resources, often from various areas.
◦ Should have a primary customer or sponsor.
◦ The project sponsor usually provides the direction
and funding for the project.
◦ Involves uncertainty.

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 Characteristics of project-Cont’d

Uniqueness

Projects involve doing something that has not been done before
The presence of repetitive elements does not change the
fundamental uniqueness of the project work
◦ For example, many thousands of office buildings have been developed, but
each individual facility is unique-different owner, different design, different
location, different contractors, and so on.
◦ Example 2: A development project (ex. Water and sanitation) may be
implemented in five geographical areas.

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 Characteristics of project-Cont’d

Uniqueness-cont’d

◦ The objectives of projects and operations are fundamentally

different
◦ Can you explain some of them?
◦ The purpose of a project is to attain the objective and close the
project
◦ Project ceases when it declared objectives have been attained
◦ The objective of an ongoing non-projectized operation is
normally to sustain the business.
◦ Non-project undertakings adopt a new set of objectives and
continue to work.

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Characteristics of project-Cont’d

A temporary nature
◦ The duration of a project is finite; they are not ongoing efforts
◦ Temporary does not necessarily mean short in duration; many projects last for several
years
◦ Temporary does not generally apply to product or service created by the project
◦ Most projects are undertaken to create a lasting result.
◦ Ex: Grand Renaissance dam will create a result expected to last
centuries.

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Question
1. Identify the one that doesn’t reflect the definition of a project.

A. Novelty
B. Has specific objective
C. Is time bound
D. Doesn’t involve risk

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 Characteristics of project-Cont’d

Progressive elaboration

Due to the uniqueness of project results, the precise details in terms

of the deliverables contributing to the results are not known from
the outset.
◦ At the start of a project, the characteristics of its deliverables and the project
parameters of scope, time, cost and performance will be broadly defined.

During the development of the project plans, and as the early stages
of the project progress, a better understanding of the project will be
obtained – it will be progressively elaborated.

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 Characteristics of project-Cont’d

Progressive elaboration-Cont’d

The following example illustrates progressive elaboration:

◦ The product of an economic development project may initially be
defined as:
◦ ‘Improve the quality of life of the lowest income residents of community
X’
◦ As the project proceeds, the products may be described more
specifically as, for example: ‘ provide access to food and water to 500
low income residents in community X’
◦ The next round of progressive elaboration might focus exclusively on
increasing agriculture production and marketing, with provision of
water deemed to be secondary priority to be initiated once the
agriculture component is well under way.

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 Characteristics of project-Cont’d
Progressive elaboration-Cont’d---The ‘amount’ of elaboration needed

The ‘amount’ of elaboration needed to obtain a detailed definition of a project will depend
on the level of knowledge about the project.
We can differentiate projects between two extremes: fuzzy and clear.
◦ If the project’s deliverables are well defined, it will be closer to the clear end of the
spectrum, and less elaboration will be required. The more fuzzy the project’s
deliverables are, the more elaboration will be required.

Aids cure Culture IT system Construction

change development Audit

Clear
Fuzzy

Amount of elaboration required Low

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High
Characteristics of a Project
A project has typified by its various characteristics.
The following table summarize the features of a project.
1 Objective A project has a fixed set of
Objective to be accomplished.
2 Life Span A project can’t continue endlessly. It
has to come to the end.
3 Single entity While the participants are many, the
project is one entity
4 Team Work Project calls for teamwork

5 Life Cycle Project has life cycle

6 Uniqueness No two projects are exactly similar

7 Change Project sees many changes throughout
its life
8 Made to A project is always made to the order
Order of its customers
9 Unity in Varieties in culture, ethics, equipment,
Diversity technology, give strength to the
completion of the project

10 Sub 80 % of the project is done through sub

Contracting contracting
11 Risk & Every project has risk and uncertainty
uncertainty associated with it.
.1. The temporary nature of a project doesn’t refer to mean?
A. The limited duration of a project.
B. The output (deliverable) of project has finite effect.
C. Both a and b
D. None of the above

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1.3. Classification of project

Projects range in size, scope, cost and

time from mega international projects
costing millions of dollars over many
years to small domestic projects with a
low budget taking just a few hours to
complete.

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 Classification of project-Cont’d

i. On the basis of time: short vs. long-duration

ii. On the basis of type of products (project producing goods-
sugar factory project; services-telecommunication projects;
knowledge & info research projects
iii. Scope-project catering for regional, national or international
iv. Size (large, medium & small-scale projects)
v. Technology (labor intensive, capital, energy)
vi. Ownership (private, public, joint-venture, cooperative, NGOs)

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 Classification of project-Cont’d
With examples:
Project Categories: Examples
Each having similar life cycle phases and a
unique project management process

1. Aerospace/Defense Projects
1.1 .Space Satellite development/launch
1.2. Military operations Task force invasion

2. Business & Organization Change Projects

2.1. Acquisition/Merger
2.2. New business venture Acquire and integrate competing company.
2.3. Organization re-structuring Form and launch new company.
Consolidate divisions and downsize company.

3. Event Projects
3.1 International events 2014 World Cup Match
3.2 National events

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 Classification of project-Cont’d
With examples:
Project Categories: Examples
Each having similar life cycle phases and a unique project
management process

4. International Development projects

4.1 Agriculture/rural development People and process intensive
4.2 Education projects
4.3 Health in developing countries funded by The
4.4 Nutrition World Bank, regional development
4.5 Population banks, USAID, UNIDO, other UN, and
4.6 Small-scale enterprise government agencies.

5. Product and Service Development Projects

5.1 Information technology hardware New desk-top computer.
5.2 Industrial product/process New earth-moving machine.
5.3 Consumer product/process New automobile, new food product.
5.4 Pharmaceutical product/process New cholesterol-lowering drug.
5.5 Service (financial, other) New life insurance.
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 Classification of project-Cont’d
With examples:
Project Categories: Examples
Each having similar life cycle phases and a
unique project management process

6. Research and Development Projects

6.1. Environmental Measure changes in the ozone layer.
6.2. Industrial How to reduce pollutant emission.
6.3. Economic development Determine best crop for sub-Sahara Africa.
6.4. Medical Test new treatment for breast cancer.
6.5. Scientific Determine the possibility of life on Mars.

More examples from your Experiences?

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Classification of projects-Cont’d

Key points:
these categories are not necessarily mutually exclusive:
many projects will include aspects of two or more
categories.
Our purpose is to show that a project has many facets
and aspects.

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 Revision:

What is a project?
A temporary endeavor undertaken to create a unique
product, service, or result
Key things to note:
◦ Definite start and end
◦ End defined by attainment of objectives or termination
of the project
◦ Temporary does not necessarily mean short in duration
◦ Temporary does not generally apply to the product,
service or result

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Discussion
Discuss clearly the characteristics of project

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.Part two

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 Reflection

How programs and projects are

interrelated to each other?

What is the difference between a project

and operational/business as usual
activities?

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 1.4. Project Vs program

 “project” – a group of activities to produce a Project Purpose in a fixed time

frame
 A “program” – a series of projects whose objectives together contribute to a
common Overall Objective, at sector, country or even multi-country level.

 A program is an assortment of related/associated projects that are managed

together to achieve a number of objectives.
 Programs may also contain elements of ongoing operations.
 Since programs comprise multiple projects, they are larger in scope than a
single project.

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Projects:
 Support a given country's policy objectives
 Support the national strategies
 Addresses relevant problems recipients
 Have feasible, achievable objectives
 Benefits are likely to be sustainable

See figure next slide

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Policies, programmes and projects

National & sector wise

policies

Government
programmes Priorities and
programmes of
non-state actors

Project Project Project

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 Project Program
Narrow in scope Wide in scope; can comprise
many projects as components.
Specific and detail Comprehensive and general
Differences

More precise and accurate in Broader goal related to

its objectives and features sectoral policy
Possible to calculate the Difficult to calculate costs
costs and returns and returns
• Have purpose/ objectives
Similarities

• Require input (financial, manpower, material)

• Generate output (goods and/or services)
• Operate over space and time
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Examples
Water sector programs:
◦ Water supply & Sanitation program
◦ Irrigation
◦ Hydroelectric Development programs
• Project: Dam Construction (Gilgel Gibe III project)

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Projects Vs operations
Organizations perform two types of work: project
work and operational work
Operations are ongoing and repetitive while
projects are temporary and unique.

The purpose of a project is to attain its objective

and then terminate whereas the objective of an
ongoing operation is to sustain the business. 

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37
 What is Project Management?
The application of knowledge, skills, tools and techniques to project activities to
meet project requirements and objectives

Key features include:

◦ Identifying what is needed or to be achieved (requirements)
◦ Addressing needs, concerns, and expectations
◦ Balancing competing constraints [scope, quality, schedule, budget, resources, and risks]

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Questions
1. On the basis of their nature a project can be classified as an event
project. Which of the following is an event project?

A. Food processing project

B. Heavy engineering project
C. Petrochemical plant project
D. World cup 2018 project
E. New life insurance project

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Success of the project means;
1.It must get completed……!!
completed

2.It must be completed within budget

3.It must get completed within allocated time

4.It must perform to satisfaction

Note that the success of the project can be achieved

through people.

To that extent the principles of general management must

be applied to project management too.
 Planning, Organizing, Staffing, Leading and Controlling…..
 Steps in project management
Project management approach basically consists the following steps;

1.Grouping work in to packages which acquires the properties of the

project….. (Projects within a Project).

2.Entrusting the whole project to a single responsibility center called

project manager for coordinating directing and controlling

3.Supporting and servicing the project internally and externally

4.Building up commitments through negotiations, coordination and

directing towards goals.

5.Ensuring adherence to goals through continuous monitoring and control

Roles and Responsibilities of project manager
Inspite of computers and sophisticated software packages,
project manager is still needed to make project success.

The success of the project depends on the extent of

uncertainties in a project and not on the project manager.

But since project manager is the one responsible to

project/predict things to happen in a project and manage them
accordingly, we can not disassociate project manager from
success or failure of the project.

Hence what role should the project manager play to make the
project successful?
1. Defining and maintaining the integrity of a project

2. Development of project execution plan

3. Organization for execution of the plan

4. Setting of targets and development of systems and

procedures for accomplishment of project objectives
and targets

5. Cooperation for commitments

6. Direction, coordination and control of project

activities

7. Contract management
8. Non-human resource management including fiscal
maters

9. Projecting and problem solving

10. Human resource management

11. Satisfaction of customers, government and the

public

12.Achievement of project objectives, cash surplus

and higher productivity
Qualities/Skills of Good Project Manager
The project environment is very different from that of
typical day to day operations or a regular team that
performs similar activities on a day to day basis.

The fact that a project is temporary has a huge impact on

the staff employed within the project in respect of:
◦ Their motivation

◦ Commitment to the work in hand

◦ Loyalty to the project

Projects rarely fail but people do!

The role of the Project Manager is crucial for a
successful project, but what qualities does he/she need
to ensure effectiveness?
1. VISION

An effective project leader is often described as having a

vision of where to go and the ability to articulate it.

Visionary leaders enable people to feel that they have a real

stake in the project.

They empower people to experience their vision on their own.

2. COMMUNICATION

In all elements of work life the most common complaint about an

organization is ‘lack of communication.’

Project leadership calls for clear communication about goals,

responsibility, performance, expectations and feedback.

The leader must have the ability to effectively negotiate and use

persuasion when necessary to ensure the success of the team and project.

The PMI (Project Management Institute) suggest a project manager

should spend 90 per cent of their time communicating.

3. INTEGRITY

Call it honesty, integrity or loyalty.

The project manager needs to have them all His/her actions set an
example for the rest of the team members.

He/she is ultimately responsible for setting ethical standards for

the rest of the team.

The project manager should practice what they preach and in turn
earns trust.
4. ENTHUSIASM/PASSION

We tend to follow people with a can-do attitude, not those who are always negative

and give us all the reasons for why something can’t be done.

Enthusiastic leaders are committed to their goals and express this commitment

through optimism.

A project manager without passion, is one, that is simply put, lacking definition.

5. EMPATHY / COMPASSION

Empathy means to understand.

A good project manager needs to understand that there is life outside the

workplace and that people are not machines without emotions.

6. COMPETENCE

The team must believe that the project manager knows what he/she is
doing.

Project leaders will be chosen based on their ability to successfully lead

others rather than on technical expertise, as in the past.

Leaders are said to be seen as capable and competent if they challenge,

inspire, enable, model and encourage their followers.
7. DELEGATION

The project manager should be able to delegate with ease.

He/she should be able to recognize skills and expertise of his team

members and assign or delegate the tasks to them.

Trust is an essential element in the relationship of a project leader

and his or her team.

Individuals who are unable to trust other people often fail as leaders.
8. COMPOSURE

There are times when things do not go as expected.

In such cases, the project manager needs to maintain their

cool and be composed no matter what level of pressure they
are under.

When leaders encounter a stressful event, they consider it

interesting, they feel they can influence the outcome and they
see it as an opportunity.
9. TEAM BUILDING

The project manager needs to be a good team builder.

A team builder is a person who provides the substance that

holds the team together in common purpose toward the
right objective.

Keeping the sense of team spirit alive despite the many

problems in the project execution, is another crucial
qualities a project manager should have.
10. PROBLEM SOLVING

An efficient project manager should be capable of solving

any or all problems, either with the team or the project
itself.

The team members should trust them to solve their

problems but also involve the team in problem solving also.

A great project manager not only has to have all of

these qualities but also know when to employ them and to
what extent.
Questions
1. According to the Project Management Institute (PMI), project
management is defined as "the application of knowledge, _____, _____,
and techniques to project activities to meet the project requirements".

A. skills, analysis
B. tools, analysis
C. analysis, theories
D. skills, tools
E. skills, theories

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1.5. An overview of Project Life Cycle
is the stages through which the project
passes from inception to its completion.
Is a continuous process made up of
◦ separate stages each with its own
characteristics and
◦ complementary stages (phases) and each
setting a ground for the next one.

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The project cycle
1.Identification

5. Evaluation 2. Preparation &

& closure Appraisal

Proposal
Appraisal development

4. Implementation
Financing
decision
3. Project
planning

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Discussion

1. What are the different types of

projects?

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