LECTURE 02

VU

CONCEPTS, DEFINITIONS AND

NATURE OF PROJECTS

By
Dr. Ali Sajid
 BEGINNING OF MODERN PROJECT
MANAGEMENT
• U S Navy's Polaris Program, NASA's Apollo,
Space shuttle & SDI ("star wars") programs -
specially developed management approaches to
extraordinarily complex projects.
• “ A Project Is A Problem Scheduled For
Solution.”
• Problem: Gap between where you are & where
you want to be, with an obstacle that prevents
easy movement to close the gap.
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 “A project is a temporary endeavour
employed to create a unique product or
service or results.
 Single effort undertaken in order to create
unique project or service.
 A group of activities to be
performed with limited resources to
yield, specific objectives in a specific
time and in a specific locality.

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 “An investment on which resources are used to create
assets that will produce benefits over an expanded
period of time.

 Task performed by the people, constrained by limited

resources & describe as Process or sub processes.

 “Unique processes, consisting of a set of coordinated &

controlled activities with start & finish dates,
undertaken to achieve an objective conforming to
specific requirements, including the constraints of Time,
Cost & Resources”.

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 ATTRIBUTES OF A PROJECT

 One Goal: Single goal compared to program.

 Has Customer.
 Specified Time : Completion date.
 Within Budget: Resource limits (people,
money, machines).
 According to Specs: certain level of
Functionality & Quality.
-Self-imposed or customer-specified &
fixed.
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 In brief, Projects are

 Directed at achieving a specific result.

 Coordination of undertaking of interrelated.
 Limited duration, a beginning & an end.
 Every project has a risk.

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Life is A Project

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 Characteristics of Project

 Temporary : Definite beginning & definite end.

 Also applies to Temporary opportunity & Temporary
team.
 Terminated When objectives are achieved, or Object
cannot be met.
 Not short in duration- may last for years.
 Duration – finite.
 Projects- not on going efforts.
 Temporary: Not applied to Products or Services of
Projects /results. May have a lasting impact.

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 Composed of Interdependent Activities.
 Unique Product, Service or Result.
 Project never happened before &
never happen again under same
conditions.

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 Progressive Elaboration, (Accompanies unique & temporary aspects).
 Progressively means “Proceeding in steps; continuing steadily by
increments”.
 Elaborated means “worked out with care & detail; developed
thoroughly”.
 Project Scope broadly defined in early stages & made more explicit as
team develops a better understanding of object & deliverables.

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 Project Characteristics
 Complex Activities: Not simple, repetitive acts.
 Connected Activities: Some order / Sequence required
in Project activities.
 “Output from one activity is input to another”.
 Conflict: Project Manager lives in world of conflict.
Compete with functional department for “Resources &
Personnel”.
 In Constant conflict for “Project Resources” &
for “Leadership Roles” in “Solving Project
Problems”.
 Client wants Changes and minimum cost, &
Parent organization wants Profits.

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 Project Environment
 All projects are planned & implemented in a Social,
Economic & Environmental, Political & International
context.
 Cultural & Social Environment (how project
affect people & how they affect projects.
 International & Political Environment
(knowledge of international, national,
regional or local laws & Customs ,Time zone
difference, Teleconferencing facility, level of
technology use, national holidays, travel
means & logistic requirements.
 Physical Environment: Knowledge about
Local ecology & Physical geography.

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 The Project Environment

Government The Organization Suppliers

Organizational Goals

Top Management Boss

Project Manager
Project Staff Colleagues

Managers Controlling
Internal Resources

Internal Users
External Users Sub Contractors

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 Project Participants
 Functional Manager
 Sponsor
 Stakeholders
 Team Members
 Project Manager

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Stake-holders

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 Stakeholders
 Actively involved.
 Interest affected, if executed.

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 Key Stake Holders
 Project Manager.
 Customer/end users, (doctor, patients & Insurer).
 Performing Organization.
 Project Management Team.
 Project Team members, directly involved.
 Sponsor.
 Influencer.
 Project Management Office, exists in performing
organization.
 Internal & External, Investor, seller or contractor,
media outlet, Government Agencies, NGO people.
 Owners, sellers, Government, Lobbyist,
contractors, society at large.

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 Your Projects Cannot Afford to Fail

 66% of all IT projects fail,

come in over budget or run
past the original deadline.
Succeed
Fail  Every year, $55 billion is
34%
15% wasted on failed IT
projects in the U.S.
 Business Impacts:
Over time
or over  Reduced profitability..
budget  Inability to fund new
51%
projects.
 Poor customer satisfaction.

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 Project & Strategic Planning

 Project: Mean of Achieving Organizational

Strategic Plan.
 Strategic Considerations:
 A Market Demand
 Organizational Needs
 Customer Request
 Technological Demand
 Legal Requirements

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 Sub Projects
 Frequently divided into more manageable
components or sub projects.
 Sub Contracted or Out Sourced.
 Sub Project according to:
 HR needs like Plumbing in Construction.
 Project Process like one Phase of Project life
cycle.
 Specialized Technology.

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The Triple Constraint of Project
Management

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 Time & Cos t Limits
Proje ct Inputs Proje ct Output(s )

Scope Cons traint

 Meeting stakeholders’ needs & expectations involve balancing

competing demands among:
 Cost, Quality, Scope, Time.
 Q = f(T, C,S)
 Where Q is Quality, S is Scope & T is Time.
 Project Q affected by balancing these three factors.
 Projects fails when:
 Estimates faulty
Time, Talent & Resources - insufficient or incorrectly applied.
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 Scope Triangle

 The Scope Triangle: Time, Cost, Resources

Cost Scope Time

Resources
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 Examples of Projects
 Designing & implementing an auto tax filing system in CBR.
 Hosting a web site of your department.
 Executing an environmental clean-up of a contaminated site.
 Holding a University alumni re-union.
 Provision of Clean Water To Pakistani nation by 2008.
 Developing a new product or service.
 Effecting a change in structure, staffing, or style of an
organization.
 Developing or acquiring a new or modified information
system.

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 Operations & Projects

 Common Characteristics:
 Performed by People.
 Constrained by limited resources.
 Planned, Executed, & Controlled.
 Activities such as:
 Financial management & control.
 Continuous manufacturing.
 Product distribution.
 Operations: on-going & repetitive activity by
staff.
 Projects - Temporary & Unique, Performed by
Teams.

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 Classification of Project Types
Social sector & infrastructure:
Transportation: Highway, Mass Transit, Airports.
Utilities: Electric power, Gas, Telephone.
Education: Schools, colleges, HEC Funded.
Public Safety: Police, Fire, National Guard.
Recreation: Parks, Playgrounds, Historic Sites.
Development: Harbors, Dams, Irrigation.
Research: Health, Space, Agriculture.
Defense: Military Equipment & Systems.
Conservation: Forests, shorelines, Pollution.

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 Categorizing of Projects

Project End Requirements

Well Defined Poorly

Defined
Project
Well defined Type I Type III
Methods
Construction
Soft Ware
Type II Production Type IV, Organizational
Development, vision,
Poorly defined Development, Training Assessment
Space

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 Project Types
Type I Projects- Large Engineering Projects:
 Well Defined Project Method & End Project
Requirements: Construction Projects.
Type II Projects- Product Development Projects, Early
Space Projects:
 (Poorly Defined Project Method, Well defined Project
end requirement).
Type III Projects – Soft Ware Development Project
(shape of end product proceeds):
 Well defined Project method, Poorly defined Project
end requirement).
Type IV Projects- Organizational Development Project,
Vision definition, assessment of impact of
Management of Change training:
 (Both Poorly Defined Project Method & Project end
requirement).

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 Some Humor

 Enthusiasm
 Disillusionment
 Panic
 Search for the guilty
 Punishing the innocent
 Praising those not involved

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 Emerging Trends

 Globalization.
 Project exists in complex market places.
 Project cycle time reduction.
 Customer satisfaction.
 On time delivery to the customers.

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 Project management consists of

Work Products
Roles
Guiding
Principles
Who is responsible? What to deliver?

Hints & Tips Processes

1

2
Techniques
3

Achievement 8

Facilitation How to produce?

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 Project Management

 Application of:
 “Knowledge, Skills, Tools, & Techniques” to Project
activities in order to meet or exceed Stakeholders’
needs & expectations from a Project.
 An Organized Venture for Managing Projects.

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 Project Management

 “Scientific Application of Modern Tools &

Techniques in:
 Planning, Financing, Implementing, Monitoring,
Controlling & Coordinating Unique Activities or
Tasks to Produce Desirable output in accordance
with Pre-determined Objectives, within the
Constraints of “Time, Cost, Quality”.

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 Project Management

 Project Management is getting job done

regarding:
 On time delivery.
 Within budget.
 Within acceptable specifications.

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News flash

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 Benefits of Project Management

 Satisfied Customers.
 Additional Business.
 Expanding career opportunities.
 Satisfaction of members.
 Improved knowledge and skills.

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Why Do Organizations Use Project Management?
 Understanding of Project/ Purpose.
 Define & Control Project Scope.
 Track Milestones.
 Resource Requirements.
 Effective/Efficient use of Resources.
 Improved Assessment.
 Project Risk Mitigation.
 Problem Areas Identification/Communication.

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