PM CH-1

Oda Bultum University
College of Business and Economics

Department of Management
Course Title Project Planning and Management
By: Nehawi M.(MA)

CHAPTER ONE
INTRODUCTION TO PROJECT AND PROJECT
MANAGEMENT
Project Concepts
• What is Project?
Or
• What do we mean by Project?
i
Project Concepts
• A Project is in a simple term a collection of linked
activities, carried out in an organized manner, with a
clearly defined START POINT and END POINT
undertaken by individual or organization to achieve some
specific objectives/ results desired to satisfy the needs
of the organization within defined schedule, cost and
performance parameters.
Project Concepts -continued....
• A Project is an organizational unit dedicated to

the allotment of a goal the successful completion
of a development product in time, within
specified budget, in conformance with the pre-
determined performance specifications.
Project Mgmt
Contd.....
• It is a set of finite activities that are usually prepared only
once and have well designed objectives, using a combination
of human and non-human resources within limits of time.
• It is a proposal for investment to create and/or develop
certain facilities in order to increase the production of
goods and/or services in a community during a certain period
of time.
Contd.....
In General the term project has a wider meaning since
different scholars have defined in different ways.

A temporary endeavor involving a connected sequence of
activities and a range of resources, which is designed to

achieve a specific and unique outcome, which operates
within time, scope, cost and quality constraints and which
is often used to introduce change
1.2. Characteristics of project
Has a unique purpose.
Is temporary.
Is developed using progressive elaboration.
Requires resources, often from various areas.
Should have a primary customer or sponsor.
 Involves uncertainty.
Contd.....
• Uniqueness
  Projects involve doing something that has not been done
before.
 The presence of repetitive elements does not change the
fundamental uniqueness of the project work
  The objectives of projects and operations are fundamentally
different
Contd.....
• A temporary nature
 The duration of a project is finite; they are not
ongoing efforts
Temporary does not necessarily mean short in duration;
many projects last for several years
 Temporary does not generally apply to product or
service created by the project
Ex: Grand Renaissance dam will create a result expected
to last centuries
Contd.....
• Progressive elaboration
  Due to the uniqueness of project results, the precise details in
terms of the deliverables contributing to the results are not
known from the outset.
  At the start of a project, the characteristics of its
deliverables and the project parameters of scope, time, cost
and performance will be broadly defined.
  During the development of the project plans, and as the early
stages of the project progress, a better understanding of the
project will be obtained – it will be progressively elaborated
Contd.....
• Customer specific nature:

A project is always customer specific.
 It is the customer who decides upon the product to
be produced or services to be offered and hence it is
the responsibility of any organization to go for
projects/services that are suited to customer needs.
Contd.....
• Risk and Uncertainty:
Every project has risk and uncertainty associated with
it. The degree of risk and uncertainty will depend on
how a project has passed through its various life-cycle
phases.
 An ill-defined project will have extremely high degree
of risk and uncertainty.
Risk and uncertainty are not only part and parcel of R &
D projects only; there simply cannot be a project
without any risk and uncertainty in a real life situation.
1.3. Classification of Projects
Projects are classified based on several criteria,
including: ownership, source of finance, and forces
behind the projects.
1.Based on ownership:
a.Private sector- mostly projects undertaken by
business enterprises.
b.Public sector- projects undertaken by national and
local government bodies.
c.NGOs- development projects are most often
undertaken by non-government and non- for profit
organizations.
Contd.....
2. Based on the Sources of Finance:
a.Government treasury- projects may be entirely financed by
government budget as per its priority. Ex: construction of
regional airport.
b.Government treasury and external sources- most projects
are financed by the joint partnership of the government and
donor groups. Ex: a road project may be financed 50% by the
government and 50% by a foreign donor.
c.External sources of Finance- projects may be financed totally
by parties other than the government but established for the
well being of the citizens and the ownership may be for the
government or the public.
3. Based on the forces Behind:
a.Demand driven/need driven- based on identified unsatisfied
demand project can be created or on unsatisfied basic needs like
food, water and shelter.
b.Donor driven- the force behind the financing organization.
Donors will have their own say and influence the types of
projects to be established.
c.Political Driven- Projects may be established in response to some
political situation such as for example because of national
elections, projects by religious organizations.
Contd.....
4. Based on their nature:
a.Civil engineering, construction, petrochemical, mining, quarrying, projects
far away from the contractor’s home office, and involve special risk as well
as problems of organizational communication.
b.Manufacturing projects- conducted in a factory or other home based
environment and enable exercising on the spot management.
c.Research projects- established for pure research consuming large sum of
money and lasting over years resulting in dramatic profitable discovery or
proving waste of money.
d.Management projects- that require the employment of an external project
manager or managing contractor for issues such as relocating head
quarters, developing and introducing a new computer system, preparing for
a trade exhibition, producing a feasibility or other study report,
restructuring the organization etc.
1.4. Projects, Programs and Plans
• It is necessary to distinguish between projects and
programs because there is sometimes a tendency to use
them interchangeably.
Student Reflection
What do you understand by the term project and
program?
Project vs programme
• A Project refers to an investment activity where
resources are used to create capital assets which
produce benefits overtime and has a beginning and an
ending with specific objectives.
• A “program” – a series of projects whose objectives
together contribute to a common Overall Objective, at
sector, country or even multi-country level.
• A programme is an ongoing development effort or plan.
Project vs programme
Shortly:
• Programme: usually a long-term series of
interventions, sometimes with no defined end point.
• Project: a discrete activity aimed at specific objective
with a defined budget and limited timeframe
Differences
Projects Programs
specific objectives General objectives
Specific project areas No specific project areas
Specific beneficiaries group No Specific beneficiaries group
Clearly determined and allocated funds No clear and detailed financial resource
allocation
Specific lifetime No specific lifetime
Similarities:
= Projects and programs have similar characteristics in
a way that both are:
 Having objectives;
 Requiring financial, human, material, etc inputs (or
resources);
 Generating outputs, (goods/services), of value;
 Serving as instruments for the execution of
development plans in order to boost the national
economy.
Projects and Plans
•All countries have national plans, which spell a range of economic and social objectives
and strategies meant to enhance growth and development.
• Planning can be defined as a “continuous process that involves decisions or

choices about alternative ways of using available resources with the aim
of achieving a particular goal or set of goals at some time in the future.”
• The rationale for planning is that it serves as a tool that enhances the
effectiveness in mobilizing resources and enables allocation of resources
into priority areas of development.
• The hierarchical relationship among development plans, programs, tasks,
and work packages.
Development plans
Programs
Projects
Tasks
Work packages
Development plans:
 Most forward looking (futuristic)
 Broad and require systematic thinking, preparation and appraisal
 Attempts to bring welfare in the society
Programs:
 Derived from development plans
 Exceptionally large with long term objectives
 Explores specific area with broader scope
Projects:
 Derived from a program
 Unique investigative tool
 A development activity with specific objectives
 Funded by a program
 An implementation element (entity)
Tasks:
 Work elements under a project
 Specific approaches for doing things
 Set of activities comprising a project
Work packages:
 Sub elements of a given task (or undertaking)
 Something accomplished stage by stage
What is Project Management?
• Project management is accomplished through the
application and integration of the project management
processes of initiating, planning, executing, monitoring
and controlling, and closing.
•Project management is application of knowledge, skill,
tools, and techniques to project activities to achieve
project requirements.
Project parameter
• During a project life management focuses attention on
three basic parameter. Quality, Cost and Time.
• A successful project is the one that completed at the
specified level of quality on or before the deadline and
within the budget.
. Project parameters
Quality Cost Time
Schedule
Specification Budget
Contd.....
• Each of the parameters is specified during the planning
phase of the project.
• These specifications then form the basis for control
during the implementation phase.
• The purpose of managing project scope, budget and
schedule is to ensure the timely and cost effective
production of all the deliverables with the satisfaction
of customers.
Reasons for Project Failure
1. Poor project and program management discipline
2. Lack of executive-level or sponsor support
3. No linkage to the business strategy
4. Wrong team members, fragmented team or team
value
5. No measures for evaluating the success of the
project
6. No risk management
7. Inability to manage change
OVERVIEW OF PROJECT PLANNING IN ETHIOPIA
 Long-term/ Middle-term Plans: it consists of development

plans, broader programs, and bundle of projects.
 Short-term Plan: It is largely composed of projects, tasks,
and work packages.

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Oda Bultum University

College of Business and Economics

Course Title Project Planning and Management

By: Nehawi M.(MA)

• A Project is an organizational unit dedicated to

different scholars have defined in different ways.

activities and a range of resources, which is designed to

Is developed using progressive elaboration.

Requires resources, often from various areas.

Should have a primary customer or sponsor.

• Customer specific nature:

Specific project areas No specific project areas

Specific beneficiaries group No Specific beneficiaries group

• Planning can be defined as a “continuous process that involves decisions or

Quality Cost Time

 Long-term/ Middle-term Plans: it consists of development

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