PROJECT

MANAGEMENT FOR
ENGINEERS

08/25/21 ASTU/ Project/ Lecture Notes 1

 Chapter One
Introduction
Project: a unique and temporary effort to produce a set of deliverables
within clearly specified time, cost and quality constraints.
 an effort to accomplish a specific objective, which requires resources and
effort, and which is unique.
a complex, non-routine, one time effort limited by time, budget, resources
and performance specifications.
 an investment activity where resources are used to create capital assets,
which produce benefits over time.

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 Project Cont’d…
a combination of human and non – human resources pooled
together in a temporary organization to achieve a specific purpose.
should be completed on schedule and budget at specified quality
standards.
Features of a Project
 Unique – a one-time activity or doesn’t involve repetitive processes
 Defined timescale - specific starting and ending date.
 Approved budget – allocated financial expenditure
Limited resources - labor, equipment, materials, finance and facilities

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 Characteristics of a Project
Specific objective -expected result or product

Client: who provides the funds

Risk - involve an element of risk

E.g. Building, Airport, Gas Station, Computer software, sugar factories,

Wind power, geothermal , Schools, Universities, Health centers, Road,
hydro-electric power station, irrigation canals, housing projects, mineral
exploration, etc.

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 Project Parameters
Management focuses attention on three basic parameters:

 Time – Schedule/ that specifies when each activity should start and
finish.
 Cost – budget/ estimated costs of resources to be used

 Quality – specification/client satisfaction

Classification of Projects
1. Ownership
 Private – undertaken by investors with the objective of profit

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 Classification of projects

 Public - undertaken by national, regional or NGOs to improve the

livelihood of citizens.
Non-institutional - personal projects - marriage, Msc, etc.

2. Source of fund
 Equity

 Loan

Grant

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 Classification Cont’d….
3. Sectoral

Agriculture, Industry, Mining, Health, Education, Transport and communication,

Financial service, etc.

4. Time horizon

Short-term project: < 5 years

Medium-term project: 5 to 10 years

Long-term project: > 10 years

5. Major resource required

Labor intensive: depends on human capital

Capital intensive: depends on physical facilities and technology

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 Classification Cont’d….
6. Amount of resources required
Small scale

 Medium scale

Large-scale

7. Assessment of benefits
Quantifiable – benefits can be quantified.

Non-quantifiable – benefits can’t be quantified.

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 Classification Cont’d….
8. Driving force

Market-driven: in response to market needs

 Crisis-driven: in response to a crisis problem (solution to a specific
problem).
 Change-driven: in response to changes
9. How resources are committed
Updating investment
New investment
 Expansion investment
08/25/21 ASTU/ Project/ Lecture Notes 9
 Project Management: Meaning, Roles and Skills
 Project management: is the application of knowledge, skills, tools and
techniques to project activities in order to meet stakeholder's expectations.
 Project management includes:

 Project integration: integrates project management processes of

planning, execution and control - where inputs from several knowledge
areas are brought together.
 Project Scope Management: the processes required to ensure that the
project includes all the work required.

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 Project Management Cont’d…..
 Project time management: the process required to ensure timely
performance of the project.
 Project Cost Management: the process required to ensure the project is
completed within the budget.
 Project Quality Management: the process required to ensure that the
project will satisfy the needs of client.

08/25/21 ASTU/ Project/ Lecture Notes 11

 Role and Skills of Effective project manager
Role:

 Planning: clearly define the project objectives

Organizing: securing capital, material and human resources to perform

the work.
Controlling: monitor the progress of their assigned tasks

 Skills of effective Project Manager:

 Leadership ability

Ability to anticipate and solve problems

Ability to integrate the project stakeholders

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 Role and Skills of Effective ..........
 Operational flexibility
Ability to get things done
Excellent communication skills
Ability to handle stress
Time management skills
Ability to negotiate and persuade
Understand the environment within which the project is being managed
Ability to review, monitor and control
Ability to manage within an environment of constant change
Ability to keep the client happy

08/25/21 ASTU/ Project/ Lecture Notes 13

 Project Management Environment
Project environment directly affects the project and how it should be
managed.
 The project manager should understand the project environments:
 Stakeholders (all interested parties)
Client /sponsor's requirements
Your company's organization structure
Market requirements
Suppliers
External users

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 Project Management Environment
 New technology

Government (rules and regulations)

Economic cycle

Subcontractors

Project staffs

Top management

Organizational goals

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 Stakeholders of a project
 Stakeholder - a person, group, organization, or system who can affect
or be affected by a project.
 The project manager should create an environment where the
stakeholders are encouraged to contribute their skills and knowledge
 Stakeholders may include:

  Originator: who suggested the project

 Owner: whose strategic plan created the project

 Sponsor/client: who will authorize expenditure

Project Champion: who makes the project happens

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 Stakeholders Cont’d.....
 Users: who will operate the facility on behalf of the owner

Customers: who receive and pay for the benefit

Senior Management: who support and mentor your project

Project Team: who plan, organize, implement and control the work
of the contractor.
Functional Managers: who supply the workforce for your project
Contractors: external companies offering expertise to supplement
the company's resources.

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 Stakeholders Cont’d.....
 Suppliers and Vendors: who supply materials and equipment
Supporters: who provide goods and services to enable the facility to be
built
Legal Requirements: rules and regulations that must be complied.
External stakeholders who may not be directly involve include:

 Regulatory authorities

Trade unions

Environmentalists

Lobby groups

08/25/21 ASTU/ Project/ Lecture Notes 18

 Stakeholders Cont’d.....
Government agencies and media outlet

Individual citizens.

08/25/21 ASTU/ Project/ Lecture Notes 19