Project Management
Gezahegn Tesfaye (PhD)
Addis Ababa Institute of Technology
School of Mechanical and Industrial Engineering
Industrial Engineering Chair
Email: gezahegnt2000@[Link]
Phone: 0938056316
Chapter 1. Introduction
Content
What is a Project?
Types of projects
Characteristic of project
Project Management
Why Projects?
What is a Project?
“A project is a unique process consisting of a
set of co-ordinated and controlled activities
with start and finish dates, undertaken to
achieve an objective conforming to specific
requirements including the constraints of time,
cost and resources.”
The International Organisation for Standards (ISO)
Example of project and its activities
Project Name: Extraction of dye from fresh leaves of Vernonia
amygdalina by aqueous method
Source: Loum Janani, L., & Hillary, B. (2013). EFFECTS OF MORDANTING METHODS OF
DYE FROM VERNONIA AMYGDALINA ON COTTON FABRICS COLORATION. Journal
of Language, Technology & Entrepreneurship in Africa, 4(2), 17-27.
Activities (tasks):
•Soaking the leaves in distilled water (400 cm3 ) in a beaker for four hours.
• Heating the soaked plant materials at 60°C for 30 min
• Gradually raising the temperature to boiling temperature (90°C) and maintained at
the boiling temperature for one hour to yield a dye extracts.
• Leaving the dye extract to stand for 30 min at ambient temperature and filtered.
• Diluting the colored crude dye solution (150 cm3) with distilled water (50 cm3)
Construction of a house is also a project. The
construction of a house consists of many activities like:
• Digging of foundation
• Construction of foundations
• Construction of walls
• Construction of roof
• Fixing of doors and windows
• Fixing of sanitary fittings
• Etc
Types of projects
Construction project
Manufacturing project
• The development of a fashion
collection:
requires a project management
methodology that integrates the
development of the project:
from the initial phase –
conception of the product
idea
until the final stage – start
of production / launch to
the market.
Agricultural project
• The varieties to be
used?
• Ho w to plant?
• Ho to undertake
irrigation?
• How to harvest?
• The yield
• How to care?
Characteristics of a Project
• There is a close relationship and differences between the
two.
• Both involves the conversion of inputs into desired
output. The difference is whether that conversion
process is a one-time job or a repetitive process.
• Project – temporary (every project has a definite
beginning and a definite end),
• Production: repetitive action, ongoing
Project versus Production
Project Production
Automobile factory Produce automobiles
Build a house Operate household
Construct a hospital Treat patients
Conceive new Manufacture
product
Develop prototype Manufacture multiples
Characteristics of a Project
• temporary in nature: defined start and a defined end-point.
• unique set of requirements that need to be delivered within
the boundaries of the project
• once off endeavour, rather than something that’s happening
all the time in a repeated fashion.
Similarities
Both Production and projects share many
characteristics in common like:
• People perform both the activities.
• Both are constrained by limited resources.
• Both are planned, executed, and controlled.
Mix of Projects and Production
• Projects and production are intimately interwoven
in real life.
• Projects start production and solve problems
relating to operation, maintenance, marketing,
quality, distribution, material handling, material
storage, packaging, etc
• Once the improvements are done the changes are
institutionalized in the factory.
Project Characteristics
Objectives
• A project has a set of objectives or a mission.
• Once the objectives are achieved, the project is
treated as completed.
• For example, the objective of a project may be to
set up a cotton spinning mill.
• Once the set up of a cotton spinning mill is
completed the project comes to an end.
• Life cycle
A project has a life cycle from conceptual stage to closing
stage.
• Definite time limits
A project has a definite time limit. It cannot continue
forever.
• Uniqueness
Every project is unique and no projects are similar.
Setting up a Ginning Factory and setting up a Knitting
Factory are two different projects having unique
characteristics. Setting up a Ginning Factory in Bahir
Dar and setting up a Ginning Factory in Hawassa are also
unique in themselves, in view of the differences existing in
the organization, infrastructure, location, technical
specifications and the people behind the projects.
• Team Work
A project normally consists of diverse areas. There will be
personal specialized in respective areas. Any project calls
for the services of experts from a host of disciplines. Co-
ordination among the diverse areas calls for team-work.
Hence a project can be implemented with team work.
• Complexity
A project is a complex set of activities relating to diverse
areas. Choosing the appropriate technology, procuring the
appropriate machinery and equipment, hiring the right
kind of people, arranging for financial resources, execution
of the project in time by people, scheduling of the different
activities, etc., contribute to the complexity of the project.
• Sub-Contracting
Some of the activities are entrusted to sub-contractors to
reduced the complexity of the project.
Sub-contracting will be advantageous if it reduces the
complexity of the project so that the project manager can
coordinate the remaining activities of the project more
effectively.
Risk and uncertainty
• A risk-free project cannot be thought of.
• Some of the risk elements can be foreseen and the project
can be strengthened to encounter the risk as and when it
emerges. Some risk elements cannot be seen.
Examples
• sudden entry of a strong competitor who can upset all our
forecasts
• Sudden fall of government in a country
Change
• During the course of implementation, the technology
would have improved further and equipments with the latest
technology would have already started arriving.
•In such a case, if the equipment originally planned has not
yet been procured, it would be wise to switch over to the
equipment with the latest technology.
•All such changes are necessitated in order to keep the
project update.
Optimality
• A project is always aimed at optimum utilization
of resources for the overall development of the
organization/economy.
• Resources are scarce and resources have a cost.
Project -driven versus non–project-driven
organizations
In a project-driven organization:
all works are characterized through projects,
with each project as a separate cost center having
its own profit-and-loss statement.
everything centers around the projects.
In the non–project-driven organization:
profit and loss are measured on vertical or functional
lines.
projects exist merely to support the product lines or
functional lines.
priority resources are assigned to the revenue-
producing functional line activities rather than the
projects.
Project management
• Project management is a specialized management
technique to plan and control the available resources
under a strong single point of responsibility for the
successful completion of the project.
• Managing projects is a matter of keeping scope, schedule, and resources
in balance.
• Generally project management means planning, organizing, and tracking a
project’s tasks to accomplish the project objectives.
• Scope is the range of tasks required to accomplish project goals.
• A schedule indicates the time and sequence of each task, as well as
the total project duration.
• Resources are the people and/or equipment that perform or facilitate
project tasks.
• Successful project management can then be defined as
having achieved the project objectives:
within time
within cost
at the desired performance/technology level
utilizing the assigned resources effectively and
efficiently
accepted by the customer
• A project is generally deemed
successful if it meets predetermined
targets set by the client, performs the
job it was intended to do, or solves an
identified problem within
predetermined time, cost, and quality
constraints.
PM triangle
Why Projects?
• Products have to be developed according to market requirements
• Today we are in a highly dynamic and competitive environment
• Changes in the market evolve very rapidly
• Rapidly changing market requirements have main effects in the
development of new and/or innovative products.
• To develop
new products,
new organizational schemes,
new supply chains,
new inventory control systems,
• Projects play vital roles as Policy Instruments or
strategic moves in favor of setting.
Technological innovation
Broadening the resource base
Institutional/capacity building
Improving distribution mechanism, etc.
Project Life Cycle
It is convenient to think or project the work as
taking place in several distinct stages.
This chain of stages is commonly referred to as the
"project cycle".
Project management, involves five process groups as
identified in the PMBOK Guide, namely:
• The sequence of phases through which the project will
evolve.
• It will significantly affect how the project is structured.
• The basic life cycle follows a common generic sequence:
– Opportunity, Design & Development, Production, Hand-
over, and Post-Project Evaluation.
• The exact wording varies between industries and
organizations.
• There should be evaluation and approval points between
phases often termed 'gates'.
The World Bank model Project life cycle
Identification
Preparation
Evaluation
Implementation Appraisal/
financing
Archibald's Project Life Span
Project initiation
– Selection of the best project given
resource limits
– Recognizing the benefits of the project
– Preparation of the documents to sanction
the project
– Assigning of the project manager
Project planning
– Definition of the work requirements
– Definition of the quality and quantity of
work
– Definition of the resources needed
– Scheduling the activities
– Evaluation of the various risks
Project execution
– Negotiating for the project team
members
– Directing and managing the work
– Working with the team members to help
them improve
Project monitoring and control
– Tracking progress
– Comparing actual outcome to predicted
outcome
– Analysing variances and impacts
– Making adjustments
Project closure
– Verifying that all of the work has been
accomplished
– Contractual closure of the contract
– Financial closure of the charge numbers
– Administrative closure of the papework
Thank you!