Chapter 1

Introduction of Project and Project

Management

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Contents
[Link] of Project, its characteristics, and example of project.
[Link] of Project
[Link] Objective and Goal
[Link] Life Cycle Phases
[Link] Environment
[Link] to Project Management

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Definition of Project

 A project is accomplished by performing a set of activities.

 E.g. construction of house is project.
 It consists activities like digging of foundation pits, construction of
foundations, construction of walls, construction of roofs, fixing of doors
and windows etc.

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Definition of Project

Nature of activities on a project is non- routine.

Project consumes resources.(5m : manpower,
money ,minute, material, Machine.)
Resources are constraint.
Project can be defined as organized programme
of pre -determined activities that are non routine
in nature and that must be completed using
available resources within the given time limit.

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Definition by different institutions and
thinkers:

 Any series of activities and tasks that have a specific objective to be

completed within certain specifications , defined start and end points,
funding limits and consume resource. Harold kerzner
 A project is defined as a temporary endeavor under taken to create a unique
products or services. Project management body of knowledge
(PMBOK)
 Project is a combination of human and non-human
resources pulled together into a temporary organisation to
achieve a specific purpose. Clealand and king

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 Characteristics
1. Objectives
Project has clearly defined objectives or goals.
Project is treated completed after objectives are achieved.
e.g. objective of project may be construction of highway connecting two cities
‘A’ & ‘B’, covering a distance of 20 km.
2. Unique
No two projects are similar. Constructing a highway between cities A&B and
constructing another highway between cities C&D are also unique in
themselves in view of differences existing in organisation , infrastructure,
location, technical specifications and the people behind the projects.

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 Characteristics
3. Temporary/ Definite time limit
Has definite beginning and end
Does not continue for ever
Maintenance of highway will continue for ever so it will not come under
purview of project
4. Constraints
Operates within the constraints of time, cost & quality
5. Specific task, not routinely performed
 No works are repeated
 E.g. after construction of weir/barrage new structure are constructed.
Weir/barrage is not constructed again

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Characteristics
6. Team work
 Personnel of diverse areas(specialised in their respective area)
 Co-ordination among them
 Key stakeholders:
 Project Manager
 Sponsor
 Customer
 Performing organisation
7. Life Cycle
 Conception Stage
 Design Stage
 Implementation stage
 Commissioning/ termination stage
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Characteristics
8. Complexity
 Compelx set of activities relating to diverse field
 technology survey, choosing appropriate technology, hiring right kind of
people , arranging financial resources etc contribute to complexity

9. Contracting and subcontracting

10. Risk and uncertainities
11. Customer specific
12. Rapid expenditure

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 Examples of project
 Construction project (building ,road, hydropower etc )
 Writing book, thesis etc
 Producing movie or serial on television
 Research and development projects
 Performing marriage for children

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Classification of projects
According to
[Link]
1.1 Private sector projects
 Based on private investments
 E.g civil homes
1.2 Government sector projects
 Based on government development plans
 Major sponsor is government in developing countries
 E.g. hospitals, water supply projects
1.3 Grant projects
 Donor agencies invests and government need not to pay
 E.g. world vision. USAID donated projects etc.

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Classification of projects
1.4 Loan projects
 Investment from donor agencies is repaid
 E.g. pokhara airport
2 Techniques
2.1Labour intensive projects
 Labor based (skilled, unskilled)
 Technology used is low to handle simple tasks
 To create employment
 Advantages
 Employment generation
 Local resources are utilized
 More production at cheaper rate
 Saving foreign exchange
 Scope for employment for women/social justice
 Low capital requirement

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 Classification of projects
Disadvantage
 Lack of technological advancement
 Time consuming
 Inability to handle complexity
 Low capital formation
2.2Capital intensive projects
 Technology based (high capital investment)
 Tasks are complex
 Machine –based automation , computerization , robotization , IT extensively used
 Advantages
 Ease in capital formation
 Resource utilization
 Better quality
 Skill advancement
 Complexity management

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Classification of projects
 Disadvantage
 Huge amount of capital
 Decreases employment
 Unequal payment for workers (imbalance distribution)
 Adverse effect on distribution of income

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Classification of projects
[Link] and size
3.1Mega
 Complex projects for 5 to 10 years
 Requires huge investment and high technology
 E.g upper karnali hydropower
3.2 Major
 Smaller in size than mega
 E.g middle marshyandgi hpp
3.3Medium
 Small than major
 [Link]/bhotekoshi hpp
3.4Small
 Project of short duration
 E.g. manang hpp

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Classification of projects
3.5Micro
 Smaller projects managed by community
 e.g ghandruk hydropower
4Orientation
4.1Product oriented
 E.g roads, building etc
4.2Process oriented
 E.g repair of cement plant, person training

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Classification of projects
5 Time frame/speed
5.1Normal
5.2Crashed
6 Foreign aid
6.1 Joint venture project
 Collaboration of foreign and local investors
 E.g. hulas steel (financial collabration with bermuda), gorakhkali tyre
(financial and technical collabration with china)
6.2Bilateral
 Foreign aid based especially grants
 Result of agreement between two countries
 E.g. JICA, USAID etc.

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Classification of projects
6.3Multilateral projects
 Result of agreement between multilateral agency and recipient country
 Concessional loan financing which needs to pay back
 E.g. WB, ADB etc.

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Project Objective And Goal
Goal (TARGET):
Goal is the end result to be achieved
It guides action of project
Setting of objective is to meet the GOAL
A specific result that a person or system aims to achieve within a time frame
and with available resources: objective

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Project Objective And Goal
S= specific and clearly defined
 The more specific a goal is clearer
 E.g Don’t say I want to own a house .
 Try to answer on who, what, where, when, how etc.
M= measurable so that project outcome can be evaluated
I want to read is different than I want to read 30 pages.
This will help to motive and continue to target
A= achievable/ attainable and agreed by all members of team
Set goals based on current restrictons, such as your schedule, workload,
knowledge etc.
R= realistic
Set a goal you have a realistic chance of achieving
e.g. if you haven’t studied it would be unrealistic to get distinction
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Project Objective And Goal
 T= time framed
define end point.
 E.g of SMART goal:
 Bad e.g. I want to write a book
 Good e.g I want to write a book on “how to earn money” that is at least 100
pages in length and get it completed by 30th december 2026. I will write at
least 7 pages every weekday until I complete the book.

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Project life cycle phases

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Project life cycle phases

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Project life cycle phases

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Conceptual Phase
 It is also called initial phase / definition phase of the project.
 In this phase ,Project identification / selection / formulation is done.
 Activities in this phase are:
 Collection and Gather data
 Identify and assessment of needs
 Setting project objectives and goals
 Pre-feasibility study of the project
 Preliminary design of the project
 Preliminary estimate of the project

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Conceptual Phase
Feasibility Analysis:
 Technical analysis
 Marketing analysis
 Socio - economic analysis
 Managerial analysis
 Financial analysis
 Environmental analysis / resettlement plan

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Planning Phase/Development Phase
 It includes following major activities in this phases:
 Detail feasibility study
 Appraisal
 Project approval
 Detail engineering survey and design
 Analyzing and designing the structure and its
elements
 A set of explicit drawings and specification
 Setting standards of safety and performance

 Technology (construction methods)

 Detail estimation of the project

 Preparation of BOQ, Tender Form, Standard

specification, detailed drawings,

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Planning Phase contd.
Procurement
 It involves two major types of activities:
 Contracting and subcontracting
 Single general contract or
 Subcontracting for different activities.
 Material and equipment management
 General contractor himself manages all the material and equipment
requirements.
Detailed manpower planning
Detailed scheduling of the resources
Establish monitoring / inspection / controlling mechanism
Budget planning
Involvement of the expert team

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Implemaintation Phase
 Site hand over
 Set up project organization
 Construction execution and controlling
 Maximum mobilization of resources as per planning and scheduling
 Controlling system: Effective monitoring and evaluation (checking,
testing, sampling, progress monitoring)
 Controlling of scheduling, cost and performance
 (CPM, PERT, “S” curve, Quality checking)
 Maintain project management information system (PMIS)

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Termination Phase
 It involves the following activities:
 Evaluation &
 Project hand over
 Records are prepared of the actual construction work finally carried out at
site.
 Changes are recorded for reason of technical performance and financial
implications.
 To inspect the construction work thoroughly and have any defects removed.
 Warranty period (back to correct problems)
 Evaluation of the project
 Project completion report
 Issue of final completion certificate
 To prepare operating instructions and maintenance manuals.

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Project Environment
 project means a planned investment undertaken to deliver a unique product or service
as an output and environment is defined as surroundings in which someone or
something lives.
 Project environment refers to surroundings or elements where project execution takes
place.
 Project environment affects the project.
 Environment consist of forces that influence the project’s ability to achieve its
objective.
 Project always do operates in rapidly changing dynamic environment so project
should continually adapt to the environmental changes.
 Basically there are three different types environment consisting of forces (factor
affecting the project) in a project.
 Internal environment
 Task or stakeholder’s environment
 External environment
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Project Environment

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External
 All forces outside a project that are relevant to its operation.
 They are beyond control of an individual project and its management.
Economic
 It includes:
 Economic system, national income, distribution of income, market factors,
product market , inflation, economic condition in national condition etc.
 It affects cost and demand of products.

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External
Political/ legal
 Political Includes political stability, administrative law, constitution,
ideology of government in power etc.
 These factor either restrain or facilitate the function of government.
 Legal refers to legal framework. It includes laws, regulations court
decisions etc.
Socio-cultural
 It comprises of population trends, education system, life style.
 Culture is associated with society and includes values, beliefs and behavior
of the people.

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External
Technological
 Includes state of technology, machinery, equipment, methods, skills and
rate of technological change etc.
 Project manager should be concerned with components of technological
environment and pace of change of technology, technology transfer, level of
technology absorption etc.

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Operating/Task
 It refers to group of stakeholders, participants or interest groups who
benefit or get affect by project.
 Project team don’t have control over them but influence them. It consists
of media, customers, consultants, competitors, suppliers, contractors etc.

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Internal
 Located within project and can be controlled.
 It affects the effectiveness of the project.
 It consists of
Objective:
 Desired end result
 Provides orientation to project manager
Resources
 Human and non-human
 Objective can be achieved through resources

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Internal
Structure:
Framework within which project functions
It defines roles and responsibility to achieve goals
Constraints
Time, cost and quality are constraints of project.
Balance between them is necessary.

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Introduction to project management
 Management is the process of getting activities completed efficiently and effectively
with and through other people.
 What the managers do, that is management, such as planning, organizing, staffing,
directing, controlling, coordinating, reporting and budgeting.
 It is the planning, organizing, directing and controlling of company resources for a
relatively short term objective that has been established to complete specific goals
and objectives.
 Project management utilizes the systems approach to management by having
functional personnel (the vertical hierarchy assigned to a specific project).
 Assignment of total project responsibility and accountability to a single person i.e.
project manager Coordination across and with the stakeholders
 Proper utilization of planning and control tools for better resource use within
constraints of time, cost and quality

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Introduction to project management
 There are various tools and techniques used for project planning,
scheduling and controlling.
 The following five tools among the most and widely used types are as
follows:
 Bar chart or Gantt Chart
 Network analysis
 CPM

 PERT

 Line of balance
 S – curve
 WBS

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Benefits
 Environmental adaptation
 Change management (flexibility)
 Result oriented
 Coordination
 Team development
 Re-engineering
 Timely correction
 Customer satisfaction

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Limitations
Team related problems
 Conflicts between stakeholders
 Lack of long range planning (time bound)
Problem in authority delegation
 Organizational barriers

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