Introduction to ProjectsIntroduction to Projects

Presentation OutlinePresentation Outline

What is Project Management?What is Project Management?

What is a Project?What is a Project?

Projects within OrganizationsProjects within Organizations

Major Components of a ProjectMajor Components of a Project

Classification of ProjectsClassification of Projects

What is project managementWhat is project management??

Project:Project: A group of milestones or A group of milestones or phases, activities or tasks that phases, activities or tasks that support an effort to accomplish a support an effort to accomplish a goalgoal

Management:Management: is the process of is the process of planning, organizing, controlling and planning, organizing, controlling and evaluationevaluation

What is a ProjectWhat is a Project??Definition 1Definition 1

""any any undertakingundertaking that has definite, final that has definite, final objectivesobjectives representing specified values to be used in the representing specified values to be used in the satisfactionsatisfaction of some need or desire of some need or desire””

This definition examines the This definition examines the objective based objective based problem solvingproblem solving. . There are a number of interesting There are a number of interesting concepts that are derived from this definitionconcepts that are derived from this definition. . Projects can cover a wide range of human Endeavour Projects can cover a wide range of human Endeavour

and physical projects represents only a sub class of the and physical projects represents only a sub class of the types of projects that existtypes of projects that exist. . Other projects may cover Other projects may cover the implementation of a new work method, arranging a the implementation of a new work method, arranging a social event, writing a book, etc,social event, writing a book, etc,

What is a Project? ContinuedWhat is a Project? Continued For projects to exist by this definition there must be a For projects to exist by this definition there must be a

visible need to be satisfiedvisible need to be satisfied. . The satisfaction raises two The satisfaction raises two major issuesmajor issues: :

the needs of the various participants the needs of the various participants ((stakeholdersstakeholders) ) in a project are in a project are not the samenot the same, , ((in construction in construction projects the needs of the owner are not the same as projects the needs of the owner are not the same as the contractorthe contractor ( (

and the needs and the needs must be identifiablemust be identifiable. . This is not to say This is not to say that the need will not change during the life of the that the need will not change during the life of the project, however the objectives of the project must project, however the objectives of the project must always be directed at satisfying that needalways be directed at satisfying that need..

Values are specified that satisfy the need or desireValues are specified that satisfy the need or desire. . These values often are a compromise between These values often are a compromise between perfection and cost or timeperfection and cost or time. .

What is a Project? ContinuedWhat is a Project? Continued

Definition 2Definition 2

""forces and forces and bundles of energybundles of energy moving moving through timethrough time- - each with its own identity, each with its own identity, culture, methods of conversion and culture, methods of conversion and contrived cohesioncontrived cohesion””

This definition is very useful in describing the This definition is very useful in describing the organic and organic and dynamic naturedynamic nature of projects of projects ) ) analogy analogy to waves)to waves). . It is this concept of management of a It is this concept of management of a highly dynamic system that has had a major highly dynamic system that has had a major influence on modern Project Management influence on modern Project Management thinkingthinking. .

What is a Project? ContinuedWhat is a Project? Continued Many of the modern texts on project management Many of the modern texts on project management

have changed their emphasis from the analytical have changed their emphasis from the analytical tools of project management to the control and tools of project management to the control and management of these forces and energies of management of these forces and energies of projectsprojects. .

Projects are non rigid entities and are not Projects are non rigid entities and are not incompressible, can expand, shrink, bend, incompressible, can expand, shrink, bend, accelerate, slow down, change shape and accelerate, slow down, change shape and direction, escape the burdens of capitalization,direction, escape the burdens of capitalization,. . For this reason projects suit changing times and For this reason projects suit changing times and allow us to capture opportunitiesallow us to capture opportunities..

What is a Project? ContinuedWhat is a Project? ContinuedDefinition 3Definition 3

Projects can be seen as a conversion Projects can be seen as a conversion process under a systems constructprocess under a systems construct. . The project converts a present The project converts a present problem to a satisfied need under a problem to a satisfied need under a range of constraints using a number range of constraints using a number of mechanismsof mechanisms. . This process is This process is shown on the following figureshown on the following figure..

What is a Project?- ContinuedWhat is a Project?- Continued

What is a Project? - ContinuedWhat is a Project? - ContinuedOther definitions and conceptsOther definitions and concepts A project involves a single , definable A project involves a single , definable

objective (purpose), output (result), usually objective (purpose), output (result), usually specified in terms of cost , schedule, and specified in terms of cost , schedule, and performance requirements (Nicholas, 2003).performance requirements (Nicholas, 2003).

A project is a series of activities aimed at A project is a series of activities aimed at bringing about clearly specified objectives bringing about clearly specified objectives within a defined time-period and with a within a defined time-period and with a defined budget (EC, 2000).defined budget (EC, 2000).

What is a Project? ContinuedWhat is a Project? Continued Projects are temporary activities. An Projects are temporary activities. An

ad hoc organization of personnel, ad hoc organization of personnel, materials and facilities is assembled materials and facilities is assembled to accomplish an objective within a to accomplish an objective within a time frame. Once the objective is time frame. Once the objective is achieved, the organization is achieved, the organization is reconfigured to begin another reconfigured to begin another project with new objective.project with new objective.

What is a Project? ContinuedWhat is a Project? Continued

Significant elements:Significant elements:

• Clearly identified stakeholders with Clearly identified stakeholders with emphasis on final beneficiaries.emphasis on final beneficiaries.

• An appropriate level of financial and An appropriate level of financial and economic analysis, which indicates that economic analysis, which indicates that the project’s benefits will exceed its the project’s benefits will exceed its costs.costs.

• A monitoring and evaluation system- A monitoring and evaluation system- Indicators based (to support Indicators based (to support performance evaluation)performance evaluation)

Projects within OrganizationsProjects within Organizations

Projects play a major Projects play a major role in implementing role in implementing business strategybusiness strategy. .

Projects are one of Projects are one of the major choice the major choice elements that an elements that an organization may organization may select fromselect from. . They They form part of the form part of the overall organizational overall organizational planning process as planning process as shown on the shown on the diagramdiagram..

Vision

Mission

ProjectsProgramsStrategy

Sector Goal(s)

Objectives

Projects within Organizations- ContinuedProjects within Organizations- ContinuedThe choice elements are defined asThe choice elements are defined as::

• Vision:Vision: Mental image of the best Mental image of the best accomplishment of the missionaccomplishment of the mission

• MissionMission:: the business that the organization is inthe business that the organization is in. . • GoalsGoals:: desired future positions on the roles of desired future positions on the roles of

the organizationthe organization. . • StrategyStrategy:: the general direction in which the the general direction in which the

sector goal(s) are pursuedsector goal(s) are pursued. . • Immediate ObjectivesImmediate Objectives:: specific targets to be specific targets to be

sought at specified points in timesought at specified points in time. . • ProjectsProjects:: resource consuming sets of activities resource consuming sets of activities

through which strategies are implemented and through which strategies are implemented and goals are pursuedgoals are pursued. .

Projects within Organizations- ContinuedProjects within Organizations- Continued Organizations can change missions by the nature Organizations can change missions by the nature

of the projects that they undertake and vice versaof the projects that they undertake and vice versa. .

Companies that would have been involved in a Companies that would have been involved in a single sector of business may have adapted single sector of business may have adapted strategies that suit that sectorstrategies that suit that sector. .

Many companies are now embracing a new Many companies are now embracing a new method of managementmethod of management. . This process uses This process uses projects to undertake strategic changeprojects to undertake strategic change..

Under new process, the management of a Under new process, the management of a company becomes the management of a stream of company becomes the management of a stream of projectsprojects

Major Components of a ProjectMajor Components of a Project

1. Project Initiation, Selection and Definition 1. Project Initiation, Selection and Definition ElementsElements

Identification of needsIdentification of needs it requires interaction with a number of diverse it requires interaction with a number of diverse groups within both the organization proposing groups within both the organization proposing the project and the wider community.the project and the wider community.

Development of AlternativesDevelopment of AlternativesIt aims at determining viable, desirable and It aims at determining viable, desirable and feasible solutions to the need. feasible solutions to the need.

Evaluation of the AlternativesEvaluation of the AlternativesA number of methods are used to evaluate the A number of methods are used to evaluate the alternatives including multi-criteria analysis.alternatives including multi-criteria analysis.

Major Components of a Project- ContinuedMajor Components of a Project- Continued

Selection of the Best Alternatives for Selection of the Best Alternatives for Further DevelopmentFurther Development

Estimation of the life-cycle cost of the Estimation of the life-cycle cost of the promising alternativespromising alternatives

Short term solutions can lead to long term Short term solutions can lead to long term headaches.headaches.

Major Components of a Project?- ContinuedMajor Components of a Project?- Continued Assessment of RiskAssessment of Risk

To develop sensitivities for selection of projects.To develop sensitivities for selection of projects.

Development of a Baseline ScopeDevelopment of a Baseline ScopeProvides a point of departure for the project.Provides a point of departure for the project.

Selling the ProjectSelling the ProjectUsing buy in strategiesUsing buy in strategies

Major Components of a Project?- ContinuedMajor Components of a Project?- Continued

2. Project Organization2. Project OrganizationThese elements enable both planning and control of the project These elements enable both planning and control of the project they include:they include:

Organization selectionOrganization selection

Client, financiers, contractors and users/operatorsClient, financiers, contractors and users/operators

Work StructuringWork Structuring

Designed to aid communications and reduce complexityDesigned to aid communications and reduce complexity

Organizational Design and InfrastructureOrganizational Design and Infrastructure

Ensuring that the project flows and actors are appropriateEnsuring that the project flows and actors are appropriate

Responsibility AllocationResponsibility Allocation

Major Components of a Project?- ContinuedMajor Components of a Project?- Continued

3. Analysis of Activities & Scheduling3. Analysis of Activities & Scheduling

Development and maintenance of time planning elements Development and maintenance of time planning elements including scoping, network creation and maintenance.including scoping, network creation and maintenance.

4. Resource Management4. Resource Management

Definition, acquisition allocation and monitoring.Definition, acquisition allocation and monitoring.

5. Technology Management5. Technology Management

Configuration management risk management and controlConfiguration management risk management and control

6. Budgeting6. Budgeting

Estimation of costs, cash-flow planning and cost monitoringEstimation of costs, cash-flow planning and cost monitoring

Major Components of a Project?- ContinuedMajor Components of a Project?- Continued7. Project Execution and Control7. Project Execution and Control

Data collection and analysisData collection and analysis

Doing the workDoing the work

Controlling the project and taking actionControlling the project and taking action

8. Project Termination8. Project Termination

Evaluation of success and recommendations for better Evaluation of success and recommendations for better performanceperformance

Scale of complexity examines three Scale of complexity examines three features for classification. These are:features for classification. These are:- Number of actors - Number of actors ((organizations, organizations,

departments, nations etcdepartments, nations etc) ) being being organizational complexity.organizational complexity.

- Resources used, time, cost etc being resource - Resources used, time, cost etc being resource or or scale complexityscale complexity..

- Level of innovation being - Level of innovation being technical technical complexity.complexity.

Classification of ProjectsClassification of Projects

TypeType TimescaleTimescale Degree of Degree of change to change to customerscustomers

Likely Likely ComplexityComplexity

Effects of Effects of ProjectProject

Change to Change to customers customers or users of or users of outputoutput

StrategicStrategic 2-52-5 yrsyrs HighHigh HighHigh Impact felt Impact felt throughout throughout the the organization organization and beyondand beyond

Change to Change to what is what is donedone

SystemsSystems yearsyears 1-21-2MediumMedium MediumMedium Impact limited Impact limited to most parts to most parts of orgof org..

Change the Change the way things way things are doneare done

OperationalOperational up to 1 yrup to 1 yr LowLow LowLow Impact limited Impact limited to a function to a function within which within which the project is the project is undertakenundertaken

Change Change who, where, who, where, when and when and the means the means by which by which something something is doneis done

Classification of Projects- ContinuedClassification of Projects- Continued