Project
A complex, non-routine, one-time effort limited by time, budget, resources
and performance specifications designed to meet customer need
Major characteristics (7)
• An established objective
• Unique
• Defined life span
• Defined budget
• Multifunctional -- CONFLICT
• Interdependency
• Uncertain -- RISK
Project Life Cycle
Define Plan Execute Deliver
Level of Effort
Time
Basic purpose of a project is to achieve specific goals focusing:
• Responsibility
• Authority
• Accountability
Classification
Based on need: (8)
• New
• Balancing
• Expansion
• Modernization
• Replacement
• Diversification
• Backward integration
• Forward integration
Classification
New Project:
A new project is initiated to establish a completely
new plant, facility, or operation.
▪ Objective: Start a new venture or business.
▪ Example: Setting up a new textile mill or IT
service center.
Classification
Balancing Project:
A balancing project ensures that all sections of a
production process are properly aligned in capacity
and output.
▪ Objective: Remove bottlenecks and optimize
production flow.
▪ Example: Adding an extra weaving machine to
match the spinning section’s output.
Classification
Expansion Project:
An expansion project increases the existing
production capacity.
▪ Objective: Meet growing demand or scale
operations.
▪ Example: Expanding a garment factory to add
two more production lines.
Classification
Expansion Project:
An expansion project increases the existing
production capacity.
▪ Objective: Meet growing demand or scale
operations.
▪ Example: Expanding a garment factory to add
two more production lines.
Classification
Modernization Project :
A modernization project introduces new
technologies or methods to improve productivity
and efficiency.
Objective: Replace outdated processes or
technologies.
Example: Installing computerized control systems
or energy-efficient machinery.
Classification
Replacement Project :
A replacement project involves substituting old or
worn-out equipment with new ones without
changing capacity.
Objective: Maintain efficiency and reduce
downtime.
Example: Replacing old looms with new automatic
looms of the same output capacity.
Classification
Diversification Project :
A diversification project adds new products or
services that differ from the existing ones.
Objective: Spread risk and enter new markets.
Example: A textile company starting to produce
home furnishings in addition to apparel.
Classification
Backward Integration Project:
A backward integration project moves the
company into areas that supply its inputs.
Objective: Reduce dependency on suppliers and
control raw materials.
Example: A garment manufacturer setting up its
own fabric production unit.
.
Classification
Forward Integration Project:
A forward integration project extends operations
toward the end customer or distribution network.
Objective: Gain better control over the supply
chain and customer access.
Example: A fabric producer opening its own retail
stores.
Piecemeal System
• Class or Prestige gaps among various levels
• Functional gaps among working units
+ =
Management gaps Functional gaps Piecemeal System
• fails to tie to the overall strategies of the firm
• fails to balance the planning and control with
appropriate adjustment
To achieve the goal (performance) within limited time and cost
Within Good Customer Relation
Resources
Performance