Introduction to Projects

Presentation Outline What is Project Management? What is Project Management? What is a Project? What is a Project? Projects within Organizations Projects within Organizations Major Components of a Project Major Components of a Project Classification of Projects Classification of Projects

What is project management? Project: A group of milestones or phases, activities or tasks that support an effort to accomplish a goal Project: A group of milestones or phases, activities or tasks that support an effort to accomplish a goal Management: is the process of planning, organizing, controlling and evaluation Management: is the process of planning, organizing, controlling and evaluation

What is a Project? Definition 1 "any undertaking that has definite, final objectives representing specified values to be used in the satisfaction of some need or desire” This definition examines the objective based problem solving. There are a number of interesting concepts that are derived from this definition.  Projects can cover a wide range of human Endeavour and physical projects represents only a sub class of the types of projects that exist. Other projects may cover the implementation of a new work method, arranging a social event, writing a book, etc,

What is a Project? Continued  For projects to exist by this definition there must be a visible need to be satisfied. The satisfaction raises two major issues: the needs of the various participants (stakeholders) in a project are not the same, (in construction projects the needs of the owner are not the same as the contractor ( the needs of the various participants (stakeholders) in a project are not the same, (in construction projects the needs of the owner are not the same as the contractor ( and the needs must be identifiable. This is not to say that the need will not change during the life of the project, however the objectives of the project must always be directed at satisfying that need. and the needs must be identifiable. This is not to say that the need will not change during the life of the project, however the objectives of the project must always be directed at satisfying that need.  Values are specified that satisfy the need or desire. These values often are a compromise between perfection and cost or time.

What is a Project? Continued Definition 2 "forces and bundles of energy moving through time- each with its own identity, culture, methods of conversion and contrived cohesion” This definition is very useful in describing the organic and dynamic nature of projects ) analogy to waves). It is this concept of management of a highly dynamic system that has had a major influence on modern Project Management thinking. This definition is very useful in describing the organic and dynamic nature of projects ) analogy to waves). It is this concept of management of a highly dynamic system that has had a major influence on modern Project Management thinking.

What is a Project? Continued Many of the modern texts on project management have changed their emphasis from the analytical tools of project management to the control and management of these forces and energies of projects. Many of the modern texts on project management have changed their emphasis from the analytical tools of project management to the control and management of these forces and energies of projects. Projects are non rigid entities and are not incompressible, can expand, shrink, bend, accelerate, slow down, change shape and direction, escape the burdens of capitalization,. For this reason projects suit changing times and allow us to capture opportunities. Projects are non rigid entities and are not incompressible, can expand, shrink, bend, accelerate, slow down, change shape and direction, escape the burdens of capitalization,. For this reason projects suit changing times and allow us to capture opportunities.

What is a Project? Continued Definition 3 Projects can be seen as a conversion process under a systems construct. The project converts a present problem to a satisfied need under a range of constraints using a number of mechanisms. This process is shown on the following figure.

What is a Project?- Continued

Other definitions and concepts A project involves a single, definable objective (purpose), output (result), usually specified in terms of cost, schedule, and performance requirements (Nicholas, 2003). A project involves a single, definable objective (purpose), output (result), usually specified in terms of cost, schedule, and performance requirements (Nicholas, 2003). A project is a series of activities aimed at bringing about clearly specified objectives within a defined time-period and with a defined budget (EC, 2000). A project is a series of activities aimed at bringing about clearly specified objectives within a defined time-period and with a defined budget (EC, 2000).

What is a Project? Continued  Projects are temporary activities. An ad hoc organization of personnel, materials and facilities is assembled to accomplish an objective within a time frame. Once the objective is achieved, the organization is reconfigured to begin another project with new objective.

What is a Project? Continued Significant elements: Clearly identified stakeholders with emphasis on final beneficiaries.Clearly identified stakeholders with emphasis on final beneficiaries. An appropriate level of financial and economic analysis, which indicates that the project ’ s benefits will exceed its costs.An appropriate level of financial and economic analysis, which indicates that the project ’ s benefits will exceed its costs. A monitoring and evaluation system- Indicators based (to support performance evaluation)A monitoring and evaluation system- Indicators based (to support performance evaluation)

Projects within Organizations Projects play a major role in implementing business strategy. Projects play a major role in implementing business strategy. Projects are one of the major choice elements that an organization may select from. They form part of the overall organizational planning process as shown on the diagram. Projects are one of the major choice elements that an organization may select from. They form part of the overall organizational planning process as shown on the diagram. Vision Mission ProjectsProgramsStrategy Sector Goal(s) Objectives

Projects within Organizations- Continued The choice elements are defined as: Vision: Mental image of the best accomplishment of the missionVision: Mental image of the best accomplishment of the mission Mission: the business that the organization is in.Mission: the business that the organization is in. Goals: desired future positions on the roles of the organization.Goals: desired future positions on the roles of the organization. Strategy: the general direction in which the sector goal(s) are pursued.Strategy: the general direction in which the sector goal(s) are pursued. Immediate Objectives: specific targets to be sought at specified points in time.Immediate Objectives: specific targets to be sought at specified points in time. Projects: resource consuming sets of activities through which strategies are implemented and goals are pursued.Projects: resource consuming sets of activities through which strategies are implemented and goals are pursued.

Projects within Organizations- Continued Organizations can change missions by the nature of the projects that they undertake and vice versa. Organizations can change missions by the nature of the projects that they undertake and vice versa. Companies that would have been involved in a single sector of business may have adapted strategies that suit that sector. Companies that would have been involved in a single sector of business may have adapted strategies that suit that sector. Many companies are now embracing a new method of management. This process uses projects to undertake strategic change. Many companies are now embracing a new method of management. This process uses projects to undertake strategic change. Under new process, the management of a company becomes the management of a stream of projects Under new process, the management of a company becomes the management of a stream of projects

Major Components of a Project 1. Project Initiation, Selection and Definition Elements Identification of needs Identification of needs it requires interaction with a number of diverse groups within both the organization proposing the project and the wider community. Development of Alternatives Development of Alternatives It aims at determining viable, desirable and feasible solutions to the need. Evaluation of the Alternatives Evaluation of the Alternatives A number of methods are used to evaluate the alternatives including multi-criteria analysis.

Major Components of a Project- Continued Selection of the Best Alternatives for Further Development Selection of the Best Alternatives for Further Development Estimation of the life-cycle cost of the promising alternatives Estimation of the life-cycle cost of the promising alternatives Short term solutions can lead to long term headaches. Short term solutions can lead to long term headaches.

Major Components of a Project?- Continued Assessment of Risk Assessment of Risk To develop sensitivities for selection of projects. Development of a Baseline Scope Development of a Baseline Scope Provides a point of departure for the project. Selling the Project Selling the Project Using buy in strategies

Major Components of a Project?- Continued 2. Project Organization These elements enable both planning and control of the project they include: Organization selection Organization selection Client, financiers, contractors and users/operators Work Structuring Work Structuring Designed to aid communications and reduce complexity Organizational Design and Infrastructure Organizational Design and Infrastructure Ensuring that the project flows and actors are appropriate Responsibility Allocation Responsibility Allocation

Major Components of a Project?- Continued 3. Analysis of Activities & Scheduling Development and maintenance of time planning elements including scoping, network creation and maintenance. 4. Resource Management Definition, acquisition allocation and monitoring. 5. Technology Management Configuration management risk management and control 6. Budgeting Estimation of costs, cash-flow planning and cost monitoring

Major Components of a Project?- Continued 7. Project Execution and Control Data collection and analysis Doing the work Controlling the project and taking action 8. Project Termination Evaluation of success and recommendations for better performance

Scale of complexity examines three features for classification. These are: Scale of complexity examines three features for classification. These are: - Number of actors (organizations, departments, nations etc) being organizational complexity. - Resources used, time, cost etc being resource or scale complexity. - Level of innovation being technical complexity. Classification of Projects

Change to customers or users of output Effects of Project Likely Complexity Degree of change to customers TimescaleType Change to what is done Impact felt throughout the organization and beyond HighHigh 2-5 yrs Strategic Change the way things are done Impact limited to most parts of org. MediumMedium years 1-2 Systems Change who, where, when and the means by which something is done Impact limited to a function within which the project is undertaken LowLow up to 1 yr Operational Classification of Projects- Continued