PROJECT ANALYSIS AND MANAGEMENT

Lecture 2
Project Vs program
Course leader : Asst.Prof Tadele T
Is there any difference between
Project Vs program

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 Project Vs program
 “project” – a group of activities to produce a
Project Purpose in a fixed time frame
 A “program” – a series of projects whose
objectives together contribute to a common
Overall Objective, at sector, country or even
multi-country level.
 Programs may also contain elements of ongoing
operations.
 Since programs comprise multiple projects, they
are larger in scope than a single project.

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 Project Terminology

When discussing project management, it is

sometimes useful to make a distinction between
such terms as program, project, task, and work
packages.

The military, the source of most of these terms,

generally uses the term program to refer to an
exceptionally large, long-range objective that is
broken down into a set of projects. These projects
are further divided into tasks, which are, in turn,
split into work packages that are themselves
composed of work units. Here is the hierarchy.
 Project Terminology…Cont’d

Program – refers to a group of projects.

Project – a specific, finite task to be
accomplished.
Task – is a further subdivision of a project.
Work packages – is a group of activities
combined to be assignable to a single
organizational unit.
Work unit – refers to the smallest unit in a
project activity.
 Project Program
Narrow in scope Wide in scope; can comprise
many projects as components.
Specific and detail Comprehensive and general
Differences

More precise and accurate in Broader goal related to

its objectives and features
Possible to calculate the
costs and returns
• Have purpose/ objectives
Similarities
sectoral policy
Difficult to calculate costs
and returns

• Require input (financial, manpower, material)

• Generate output (goods and/or services)
• Operate over space and time
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Examples
• Water sector programs:
• Water supply & Sanitation program
• Irrigation
• Hydroelectric Development
programs
•Project: Dam Construction (Gilgel Gibe III
project)

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Projects Vs operations
Organizations perform two types of work: project
work and operational work
• Operations are ongoing and repetitive while
projects are temporary and unique.

• The purpose of a project is to attain its objective

and then terminate whereas the objective of an
ongoing operation is to sustain the business.

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 Feature Projects Operations
Purpose Attain objectives and Sustain the
terminate organization
Time Temporary Ongoing
Unique product, service, or Non-unique product,
Outcome result service, or result
Key Differences

Dynamic, temporary teams Functional teams

formed to meet project generally aligned
People
needs with organizational
Generally not aligned with structure
organizational structure
Varies by organizational Generally formal,
Authority structure direct line of
of
Manager
Generally minimal, if any, authority
direct line authority
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CLASSIFICATION OF PROJECT
• Projects range in size, scope, cost and
time from mega international
projects costing millions of dollars
over many years to small domestic
projects with a low budget taking just
a few hours to complete.

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Classification of project-Cont’d

i. On the basis of time: short vs. long-duration

ii. On the basis of type of products (project producing
goods-sugar factory project; services-
telecommunication projects; knowledge & info
research projects
iii. Scope-project catering for regional, national or
international
iv. Size (large, medium & small-scale projects)
v. Technology (labor intensive, capital, energy)
vi. Ownership (private, public, joint-venture,
cooperative, NGOs)
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 Classification of project-Cont’d
With examples:
Project Categories: Examples
Each having similar life cycle phases and a
unique project management process

1. Aerospace/Defense Projects
1.1 .Space Satellite development/launch
1.2. Military operations Task force invasion

2. Business & Organization Change Projects

2.1. Acquisition/Merger
2.2. New business venture Acquire and integrate competing company.
2.3. Organization re-structuring Form and launch new company.
Consolidate divisions and downsize company.

3. Event Projects
3.1 International events 2022 World Cup Match
3.2 National events

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 Classification of project-Cont’d
With examples:
Project Categories: Examples
Each having similar life cycle phases and a unique project
management process

4. International Development projects

4.1 Agriculture/rural development People and process intensive projects
4.2 Education in developing countries funded by The
4.3 Health World Bank, regional development
4.4 Nutrition banks, USAID, UNIDO, other UN, and
4.5 Population government agencies.
4.6 Small-scale enterprise

5. Product and Service Development Projects

5.1 Information technology hardware New desk-top computer.
5.2 Industrial product/process New earth-moving machine.
5.3 Consumer product/process New automobile, new food product.
5.4 Pharmaceutical product/process New cholesterol-lowering drug.
5.5 Service (financial, other) New life insurance.
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 Classification of project-Cont’d
With examples:
Project Categories: Examples
Each having similar life cycle phases and a
unique project management process

6. Research and Development Projects

6.1. Environmental Measure changes in the ozone layer.
6.2. Industrial How to reduce pollutant emission.
6.3. Economic development Determine best crop for sub-Sahara Africa.
6.4. Medical Test new treatment for breast cancer.
6.5. Scientific Determine the possibility of life on Mars.

More examples from your Experiences?

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 What is Project Management?
• The application of knowledge, skills, tools and
techniques to project activities to meet project
requirements and objectives
• Key features include:
• Identifying what is needed or to be achieved (requirements)
• Addressing needs, concerns, and expectations
• Balancing competing constraints [scope, quality, schedule,
budget, resources, and risks]

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 An overview of Project Life Cycle
• is the stages through which the project
passes from inception to its completion.
• Is a continuous process made up of
• separate stages each with its own
characteristics and
• complementary stages (phases) and each
setting a ground for the next one.

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The project cycle
1.Identification

5. Evaluation 2. Preparation &

& closure Appraisal

Proposal
Appraisal development

4. Implementation
Financing
decision
3. Project
planning

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Identific  Potential projects emerge from specialists, local leaders and
national development strategies.
ation
 Identification of potential stakeholders, particularly primary
stakeholders.
 Carry out problem assessment and decide upon key objectives.
 Assess alternative strategies for meeting objective.

 The technical, institutional, economic, environmental, and

Preparat
financial issues facing the project studied and addressed —
ion and including whether there are alternative methods for achieving the
Appraisa same objectives.
 Assessing feasibility as to whether and determining whether to
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carry out more advanced planning.
 Evaluation of all of the feasibility studies to determine the ability
of the project to succeed 20
Detailed  The project solution is further developed in as much as
Planning detail as possible

Implementa  The project plan is implemented over a specified time

tion and period.
monitoring  Monitoring of project performance with a management
information system to enable correction of
implementation problems as they arise.

Evaluation  On-going and final assessment of the success of the project against
& closure original objectives, to learn lessons to help improve future projects.

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 Phase 1: Project identification
• This phase would usually involve:
• Identification of relevant investment
opportunities (or project ideas) through
appropriate type of opportunity studies;
• This can be a business problem or
opportunity
• Preliminary filtration of the project idea(s)
through broad screening process

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2. Project formulation/ preparation---feasibility study
 A Pre-feasibility/feasibility study is conducted to investigate
whether each option addresses the project objectives and final
recommended solution is determined.
 This stage includes the different feasibility studies such
as:
Commercial feasibility (marketing study)
Technical feasibility
Manpower and technological requirements
Financial feasibility
Financial for funding needs & sources
Economic feasibility, and etc.
This stage ends with a project feasibility report.
feasibility report for the each project idea considered worthy
or further examination at the previous stage;

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 Phase 3: Project planning

 The project solution is further developed in as much as detail as possible.

 The project’s tasks and resource requirements are identified, along with the

strategy for producing them..Scope management

 Once the project team has identified the work (scope), prepared the schedule

(time) & estimates the costs, the three fundamental components of the

planning process are completed.

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Project planning-Cont’d

• project planning is “the answering of the

following questions:
• What must be done?
• How should it be done?
• Who will do it?
• By when must it be done?
• How much will it cost?

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 Phase 4: Implementation/ execution
 The project plan is put into action and the project team
performs the work of the project.
 Progress is continuously monitoring & appropriate
adjustments are made and recorded as variances from the
original plan.
 The project manager maintains control over the direction of
the project by measuring the performance of the project
activities comparing the results with the project plan, & takes
corrective action as needed.
 Project sponsors & other key stakeholders should be kept
informed of the project status according to the agreed upon
frequencies & format.
 Status reports should always emphasize the anticipated endpoint in
terms of cost, schedule, & quality of deliverables.
Once all of the deliverables have been produced the final
solution, the project is ready for closure.
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Phase 5: Closure phase
• The emphasis is on:
• releasing the final deliverables to the customer
• Handing over project documents to the business,
• Terminating supplier contracts
• Communicating the closure of the project to all stakeholders
• Conduct lessons learned studies to examine what went
well and what didn’t
• The wisdom of experience is transferred back to the
project organization, which will help future project
teams.

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Individual Assignment I
 Identify the phases in project cycle used by the following
institutions:
1. the World Bank
2. United Nations Industrial development Organization (UNIDO)
3. Scholars
4. Development Bank of Ethiopia
5. CBE
6. Organization where you are currently working
 Highlight the insights from this assignment

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 Project management
• More than 20% of the global economic activity takes
place as project
For Developing countries- it approaches 40%

Effective management of project is becoming more

critical to the competitive position of organization and
societies.

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 Any
Question

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