MODULE 1

INTRODUCTION TO PROJECT & PROJECT MANAGEMENT

Learning objectives
WHAT IS PROJECT?
WHAT IS PROJECT MANAGEMENT?
THE RELATIONSHIP BETWEEN TIME, QUALITY AND COST
TYPES OF PROJECTS
PROJECTS AND STRATEGY
PROJECT SUCCESS FACTORS
PROJECT LIFECYCLE
WHAT IS PROJECT?

• A project is an undertaking with a defined beginning and an

end.

• It is executed with predetermined goals in terms of schedule,

costs, and quality objectives.

• We define a project as a set of interrelated tasks which are

executed over a fixed period and within certain resource
limitations aimed at achieving specific results.
WHAT IS PROJECT?

Primarily, a project has four characteristics:

1. It is typically temporary in nature. It has a defined beginning and an end.

2. It has resource constraints. That is, it has limited resources.

3. It has specific goals and objectives.

4. Tasks and activities within a project are interrelated.

WHAT IS PROJECT?

Organisations undertake tasks that involve operations or projects. Both operations and projects are
planned, executed, and controlled. The following table discusses the distinct differences between the two.

Projects Operations
Projects are endeavours that are temporary in Operations are permanent. They are ongoing
nature. execution of activities.
Projects are undertaken to produce unique Operations produce the same result or a repetitive
products. service.
Projects are typically intended to be done only once. Operations are a mixture of many recurring tasks.
The budget is typically defined and fixed for The budget is not fixed for operations. Revenue and
projects. profits from the operation can impact the available
budget.
WHAT IS PROJECT MANAGEMENT?

• Project management is the combination of systems,

techniques, and people used to monitor and control
activities undertaken within a project.

• Project management involves coordinating the resources

required to complete the project successfully on time,
within budget, and to specification.

• Project management ensures responsibilities are clearly

defined, and resources are focused on achieving specific
objectives.
WHAT IS PROJECT MANAGEMENT?

• The project management process provides a structure for communication within and across
organisational boundaries.

• Projects share common features and adhere to similar processes, leading to the development of
project management tools and techniques applicable across various projects.

• The primary goal of project management is to achieve project success. A project is deemed successful
when it meets its objectives: completion within the scheduled time, adherence to budget constraints,
and attainment of specified quality standards.
THE RELATIONSHIP BETWEEN TIME, COST AND QUALITY

The time, cost, and quality constraints are related in the form of the
project ‘iron triangle’.

• Time: The project should be finished within the designated

timeframe.
• Cost: The project should conclude without surpassing the assigned
budget.
• Quality: The final outcome should align with the project
specifications, ensuring it accomplishes its intended purpose.
THE RELATIONSHIP BETWEEN TIME, COST AND QUALITY

Example to Understand the Relationship

Winfield University has recently commissioned a small project to create a new university library catalogue
system. This must be operational within 7 months at a maximum cost of $40,000. It must be student-
friendly and compatible with the existing operating software. The project scope includes the installation of
a new computer, the installation of the new software and the installation of a new bar-code scanner.
The constraining project objectives are, therefore:

• Time: Implementation within 7 months

• Cost: Budget not to exceed $40,000
• Quality: User-friendly and compatible with existing operating software. A training program must
be included to familiarise users with the new system.
THE RELATIONSHIP BETWEEN TIME, COST AND QUALITY

Example to Understand the Relationship

Case I: Reduction in time

• The project schedule is reduced from 7 months to 4 months.

• The project's quality standards may be compromised due to

insufficient time to meet the established quality standards.

• The project costs are likely to escalate as additional resources will

be required to meet the new deadline.
THE RELATIONSHIP BETWEEN TIME, COST AND QUALITY

Example to Understand the Relationship

Case II: Reduction in cost

• The project budget is reduced from $40,000 to $30,000.

• The quality of the project may be compromised due to inadequate

funds to meet the required quality standards.

• The project's completion time may be prolonged as it will be unable

to allocate the same level of resources with the reduced budget.
THE RELATIONSHIP BETWEEN TIME, COST AND QUALITY

Example to Understand the Relationship

Case III: Increase in quality

• If the project sponsor opts to enhance the specified configuration

of the computer hardware.

• It would lead to an increase in the project cost.

• The project timeline may extend as new procurement plans and

processes would need to be initiated to acquire the newly specified
hardware.
TYPES OF PROJECTS

Simple Projects:
 Low budget
 Short-term duration
 Involves simple tasks

Complex Projects:
 Higher budgets
 Long-term duration
 Requires collaboration among people from different departments or organisations
TYPES OF PROJECTS

There are four distinct project environments, with variations in process uncertainty (i.e. what to do) and
the level of outcome uncertainty (i.e. what can be achieved).

Process Uncertainty
1. Projects that have low process uncertainty and low

High
outcome uncertainty

2. Projects that have low process uncertainty and high

outcome uncertainty

Low
3. Projects that have high process uncertainty and low
outcome uncertainty

4. Projects that have high process uncertainty and high Low High
outcome uncertainty Outcome Uncertainty
TYPES OF PROJECTS

Projects that have low process uncertainty and low outcome uncertainty

• An example of this type of project is installing point of

Process Uncertainty
sale (POS) displays in retailers’ outlets.

High
• The outcome remains the same – the installation of the
POS display.
• The process (the way in which it is implemented) would

Low
be similar across installations.
• These types of projects are considered ‘hard’ projects
Low High
due to their fixed processes and clarity of outcome.
Outcome Uncertainty
TYPES OF PROJECTS

Projects that have low process uncertainty and high outcome uncertainty

• For example, the producers and directors of a

Process Uncertainty
documentary understand the requirements for its

High
production.
• Forecasting the success of the documentary proves
challenging.

Low
• Projects like new product development or advertising
campaigns frequently face high levels of outcome
Low High
uncertainty.
Outcome Uncertainty
• Such projects require a clear and precise definition of
outcomes.
TYPES OF PROJECTS

Projects that have high process uncertainty and low outcome uncertainty

• These projects have clearly defined outcomes, yet the

Process Uncertainty
methods or timelines for achieving them remain

High
unclear.
• Research and development projects, such as the
development of medicines for Covid-19 by

Low
pharmaceutical companies, fall into this category.
• The process of developing medicine, particularly novel
Low High
treatments like those for Covid-19, is uncertain.
Outcome Uncertainty
• However, the desired outcome, such as the creation of
an effective treatment, is well-defined.
TYPES OF PROJECTS

Projects that have high process uncertainty and high outcome uncertainty

• These projects fall into the category of 'soft' projects.

Process Uncertainty
• Soft projects lack a clearly defined scope, making it

High
challenging to determine how to proceed with them.
• Project sponsors acknowledge the need for action, but
the exact nature of the task and how to accomplish it

Low
remain unclear.
• Uncertainty surrounds both the project's objectives and
Low High
the path forward.
Outcome Uncertainty
PROJECTS AND STRATEGY

• Organisations frequently integrate project management and strategic management into a unified
process known as strategic project management.

• Project management plays a crucial role in implementing organisational strategies on a broader scale.

• Few organisations can sustain consistent operations year after year without adaptation. External
factors necessitate extensive adaptation processes.

• Business circumstances evolve, prompting organisations to respond with new initiatives and
strategies to meet changing conditions.
PROJECTS AND STRATEGY

• Projects serve as the means to enact changes that enable organisations to adapt to new
circumstances and strategies.

• When a perceived need for a project arises, it should be evaluated to ensure alignment with the
overall strategy.

• Strategic initiatives within an organisation entail change management, which is effectively facilitated
through project management tools, tactics, and techniques.

• Project management serves as the enabler, facilitating all strategic changes within an organisation.
The project itself is the gap filler, the bridge between what is and what should be.
PROJECTS AND STRATEGY

• Organisations and departments typically handle multiple projects concurrently, creating the challenge
of prioritisation and management to meet organisational needs.

• Projects must align with the organisation’s strategic priorities to ensure their relevance and
contribution to overall objectives.

• Experts recommend utilising project portfolio management (PPM) to address this challenge.
PROJECTS AND STRATEGY

Project portfolio management (PPM)

• The PPM approach enables organisations to identify and implement projects based on their relative benefits
to the organisation, considering the available resources.

• The PPM approach results in a prioritised list of the most crucial projects. The project ranked highest on this
list should receive priority over others, guiding resource allocation decisions accordingly.

• The PPM approach extends beyond new projects. It evaluates the relevance of existing projects as the
organisation's strategy evolves.

• This assessment should occur not only during the initial project selection but also periodically throughout
the project lifecycle. Its purpose is to ensure alignment with the organisation's objectives and strategy at key
stages.
PROJECT SUCCESS FACTORS

A project’s success depends on a number of factors:

1. Clear project objectives:

 Project success is influenced by having clearly defined objectives.
 The project's objectives must be clear and understood by all relevant project stakeholders.

2. Top management support:

 Authority, direction, and support from top management are essential for effective project
implementation.
 Top management plays a crucial role in supporting projects by providing the required resources.
PROJECT SUCCESS FACTORS

A project’s success depends on a number of factors:

3. Effective project plans and schedules:

 Planning encompasses defining scope, creating a work breakdown structure, and allocating
resources and activities.
 Scheduling involves establishing time frames and milestones for each significant component of
the project.

4. Client focus:
 Client consultation is critical for project success because clients will ultimately be impacted by the
project outcome.
PROJECT SUCCESS FACTORS

A project’s success depends on a number of factors:

5. Project team:
 Hiring and training the right project team members is crucial for project success.
 The project team must possess the necessary skills and expertise to fulfil their roles effectively.

6. Technical competency:
 Projects swiftly deteriorate without the necessary technical competence.
 The project should possess the technology and technical support from relevant stakeholders to
execute the required tasks.
PROJECT SUCCESS FACTORS

A project’s success depends on a number of factors:

7. Effective monitoring and feedback:

 Throughout the project implementation, a feedback system should be in place to assess the
project's progress compared to initial projections.
 Effective monitoring and feedback systems enable the project manager to anticipate problems
and implement corrective measures.

8. Communication:
 The project team must communicate with external stakeholders and clients as necessary.
 Effective communication channels are vital for fostering an environment conducive to successful
project implementation.
PROJECT SUCCESS FACTORS

A project’s success depends on a number of factors:

9. Risk management ability:

 The project manager must implement systems for identifying risks.
 These systems facilitate proactive or prompt action to address issues as they arise.
PROJECT LIFECYCLE

• A project lifecycle denotes the stages in the development

of a project.

• The lifecycle starts with the actual kick-off of a project

followed by the progress of plans and schedules, the
performance of necessary works, and finally, the
completion of the project.
PROJECT LIFECYCLE

A simplified project lifecycle model consists of four distinct stages:

• Conceptualisation
• Planning
• Execution
• Termination
PROJECT LIFECYCLE

Conceptualisation or definition stage

• Drafting initial purpose and technical specifications

for the project.

• Determining the scope of work.

• Identifying necessary resources and relevant

stakeholders.
PROJECT LIFECYCLE

Planning stage

• Detailed specifications, schedules, and other plans

are developed.

• Assignments are made to individuals.

• Work packages are broken down into manageable

tasks.
PROJECT LIFECYCLE

Execution or implementation stage

• Actual 'work' of the project is carried out.

• Project costs increase significantly during this

stage.
PROJECT LIFECYCLE

Closure or termination stage

• Finished project is transferred to the customer.

• Project is officially closed out.

PROJECT LIFECYCLE

Project lifecycle aids in developing plans for project execution.

It assists in determining resource requirements and evaluating

project progress at each stage of the lifecycle.
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End of Module 1
INTRODUCTION TO PROJECT & PROJECT MANAGEMENT