1. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 1 Categorizing and Classifying Projects

2. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 2 Project Categories (1) Project can be categorized in a number of ways, depending on the organization, its mission, objectives and goals, and its priorities. Examples:  Compliance, Strategic and Operational Projects  Products, Services and Organizational Processes  Small, Medium and Large-Scale Projects  Low, Medium and High-Risk Projects  Immediate, Near and Long-term ROI projects  Low, Medium, High as well as Mature / Immature technology- based projects  Low, medium, high as well as no margin and loss-making projects  Experience-based (previously undertaken, not undertaken or partially undertaken)  Business Base projects (use core competencies, use new core competencies, do not use core competencies, leverage core competencies)

3. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 3 Project Categories (2)  Priority-based projects (urgency of need for business, customer and meeting market requirements)  Size in terms of capital and human esource requirements, duration, geographic span (global, multi-country) or a combination of these  Deliverables-based projects (product improvements, maintenance, restoration, upgrades and disposal)  Sector-based projects (for example, law enforcement, crisis and emergency situations, legal services, political campaigning)  Definitions-based (undefined, ill-defined, partially defined and fully defined projects)

4. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 4 Project Management Life-Cycle

5. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 5 Resources Used & Project Life-Cycle Concept & Initiation Concept & Initiation Design & Development Design & Development Implementation or Construction Commission or Handover Commission or Handover LEVEL OF EFFORT CONCEPT DESIGN IMPLEMENTATION COMM. Identify need for and priority of project, establish project goals, objectives and strategy, gather data, determine feasibility of the project, identify the stakeholders and potential team, estimate resource requirement and time, identify viable alternatives, present proposal, obtain approval for next phase. Approve key team members, collect detailed information, identify project scope and end result, establish project master plan and monitoring, evaluation and control system, determine budget, cash flows and resource flows, work breakdown structure, project activities and schedule, set quality standards, policies and procedures, assess project risks, confirm justification for project, obtain approval to proceed. Implement project master plan, lead and motivate project team, resolve conflicts and problems between stakeholders, procure project inputs, execute work packages and project activities, review and where appropriate approve and implement change requests, revise project master plan with scope, cost and time baselines as new information is collected, ensure adherance to quality policies and standards, conduct performance assessments of team members, prepare project status reports Finalize project work, gain customer acceptance and transfer project output, submit project evaluation report, release resources, reassign project team and dismantle project infra- structure Resource usage is highest when the project is in its implementation phase and the project activities are being performed Resource usage increases significantly when the planning phase of the project commences Low resource usage in the initial stage of the project Resource usage drops sharply as project nears its comple- tion

6. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 6 Project & Product Life-Cycle Pre- Project ConceptDesign Imple- ment. Hand- over MUD Product Life-Cyle Project Life-CyleOperational Life-Cyle ConceptDesignimplem. Hand- over MAINTENANCE ConceptDesignimplem. Hand- over UPGRADE Concept Design Imple- ment. Hand- over DISPOSALDISPOSAL PROJECTS

7. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 7 Project Management Project Initiation Project Planning Project Implementation Project Closure Project Monitoring, Evaluation and Control Project Monitoring, Evaluation and Control PROJECTS PROJECT MGT PROCESSES Staffing Planning Controlling Organizing Functions of Management Leading

8. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 8 The Functions of Project Management Project Resources CONTROLLING Who judges results and by what standards? PLANNING What are we aiming for and why? ORGANIZING What‘s involved and why? DIRECTING Who decides what and when? MOTIVATION What brings out the best in people? David I. Cleland / Lewis R. Ireland, Project Management: Strategic Design and Implementation, 4th ed., p. 42. The basic functions of general management equally apply to project management

9. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 9 Project Management (Holistic and Methodological Perspective) PROJECTSPROJECTS Organization‘s mission, goals, object- ives & strategies, priorities, current programme and project portfolio, project structure forms, resource base, infrastructure & competency, culture, policies, project- focussed knowledge, institutional & process assets Organization‘s mission, goals, object- ives & strategies, priorities, current programme and project portfolio, project structure forms, resource base, infrastructure & competency, culture, policies, project- focussed knowledge, institutional & process assets Integration, Scope, Cost, Scheduling, Human Resources, Risk, Quality, Communications, Procurement Integration, Scope, Cost, Scheduling, Human Resources, Risk, Quality, Communications, Procurement Knowledge Areas & Process Groups Knowledge Areas & Process Groups Methodological Perspective Economic Political Regulatory Security O-Resources Financial Holistic Perspective Social H-Resources Infrastructure Markets The Organization Life-Cycle Modal PMBOK

10. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 10 Projects in Holistic Perspective (The Economic Dimension) Areas of Concern and Interest Gross Domestic Product of the economy and (sectoral) growth trends, level of diversification, investment and consumption, trade and/or current account deficits, internal and external debt, fiscal deficit, wealth distribution, inflation, purchasing power, currency exchange rate and appreciation and depreciation trends over time, monetary policy. Can you think of projects which may and may not be initiated in Pakistan given its economic structure and trends?

11. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 11 Projects in Holistic Perspective (The Financial Dimension) Areas of Concern and Interest Availability and volume of project financing from local financial insti- tutions, development agencies and government, emission of securities to raise project capital on the capital market, flotation of stocks, cost of capital, venture capital, project guarantees and insurance, breadth and stability of financial system. What is your experience with raising capital for a project from an external source or sources?

12. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 12 Projects in Holistic Perspective (The Political Dimension) Areas of Concern and Interest Type of the country‘s political system (democracy, dictatorship, theocracy), political parties and agendas, system stability (fre- quency of change), prevalence of rule of law, popular support for extremist ideologies, propensity towards civil strife, good gover- nance with transparency and accountability, committment by political parties and politicians to economic development. Is Pakistan‘s politcal system stable? How does it affect projects being undertaken in different fields?

13. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 13 Projects in Holistic Perspective (The Social Dimension) Areas of Concern and Interest Trends in attitudes in society over time, demographic composition and shifts, subcultures, popular stance adopted towards issues of interest and concern to the public such as environment and rene- wable energy, cultural conside- rations in implementing certain types of projects. How do „cultural considerations“ affect projects being implemented by NGOs in NWFP and Baluchistan?

14. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 14 Projects in Holistic Perspective (The Regulatory Dimension) Areas of Concern and Interest Spectrum of laws and regulations which are relevant for projects of any type, for example: labour law, land acquisition and compensation law, contract law, construction law, procurement law, environmental law, data protection law, tax law, law concerning joint ventures and public-private partnerships, law concerning the operation of non- governmental organizations, trade and cartell law. Are the relevant laws being observed in the pursuit of projects in diverse fields in Pakistan?

15. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 15 Projects in Holistic Perspective (The Security Dimension) Areas of Concern and Interest Threats to project and project staff from opposing stakeholders, likeli- hood of blockages at project sites, sabotage, threats and acts of physical harm to, and assassina- tions of project staff. Possibility of civil strife within country and war with neighbouring country. Would you advise a European company to set up a skiing resort in remote Afghanistan?

16. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 16 Projects in Holistic Perspective (The Infrastructure Dimension) Areas of Concern and Interest Availability and quality of road and railway systems, airports (domestic and international connections), seaports (for import of project in- puts and export of the results of a project after its completion), office space and equipment, telecommu- nications (landline and cellphone networks, faxes), internet (high speed, round the clock usability), electricity, gas, and water, postal and courier services. Do you think that Pakistan‘s current infrastructure is adequate to attract and sustain large projects?

17. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 17 Projects in Holistic Perspective (The Market Dimension) Areas of Concern and Interest Size of market for goods and services and anticipated growth or decline in demand, level of competition in the market and anticipated trends in competition, transaction costs, import and export tariff structures, consumer preferences, outsourcing oppor- tunities, access to national and regional markets, special trading arrangements (free trade areas, custom unions etc.). Name three new products that you think could be introduced into the Pakistani market and for which there will be a longterm demand?

18. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 18 Projects in Holistic Perspective (The Human Resources Dimension) Areas of Concern and Interest Availability, quantity, productivity, mobility, qualifications, compe- tency, experience, performance, salary and wage levels, adapta- bility, communication and ‚soft‘ skills (including teamworking), standard of professionalism, train- ing needs and facilities, unioniza- tion, work ethics, propensity to strike, psyce, turnover level, over- all educational standard, access to H-resources from other countries. Would Intel Corporation set up a factory in Gujranwala to produce its next generation of computer chips?

19. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 19 Projects in Holistic Perspective (The „All Other Resources“ Dimension) Areas of Concern and Interest Availability, quantity, quality and cost of all resources other than human resources which are required to undertake projects successfully (achieving its goal on time and on budget to the satisfaction of all key stakeholders involved). All sorts of inputs ranging from raw inputs to nuts and bolts to heavy duty machinery fall in this category. What are the problems in acquiring project inputs in Pakistan? Discuss with the help of a few examples based on your own experience.

20. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 20 Projects in Manufacturing Organizations: A Holistic View MARKETING PRODUCTION ORGANIZATION R & D IT-SUPPORT ADMINISTRATION ACCT. & FINANCE HUMAN RES. Projects

21. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 21 ORGANIZATION All projects undertaken by an orga- nization – whether in the private, public or non-governmental sec- tors, are done with a fundamental purpose in mind: to add value to that organization. It is imperative that all projects are consistent with the organization‘s mission, goals and objectives and that there is broad recognition of the importance of doing projects. Organizations must have a culture supportive of projects and create the requisite policies, and institu- tional and informational infrastruc- ture (e.g. PMO, databases, proces- ses and methodology). Projects in Manufacturing Organizations: A Holistic View

22. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 22 MARKETING The existence of commercial organizations in the manufacturing and service sectors can be traced to the fulfillment of needs on the market. Based on market research and sur- veys and consequent identification of customer wants and needs, manufacturing organizations plan the development of new products (or services in the case of service organizations) and/or seek to modify existing product (or service) offerings. Marketing is, hence, often the first front in the life of a project which leads to a new product (or service). Projects in Manufacturing Organizations: A Holistic View

23. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 23 PRODUCTION A manufacturing organization‘s pro- duction department is instrumental in bringing onto the market new products (or modified versions of existing ones) created as a result of the organization‘s projects. The organization must ensure that its production base is sufficiently large to accommodate demand for the new and/or modified product(s) in the market and that the material inputs from suppliers are made available when needed. A modifica- tion of processes and production technology, and expansion of pro- duction capacity may be necessary and must be undertaken in a timely manner. Projects in Manufacturing Organizations: A Holistic View

24. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 24 R & D A corporation‘s Research & Development Division is instrumen- tal in the development of new pro- ducts and in undertaking significant alterations to existing product offerings. Research and development is a complex, challenging, risky, time- consuming and resource-intensive excercise which, if successful, can bring the organization considerable financial rewards besides boosting its public image and bringing it goodwill. R+D projects usually count as the most highly valued projects in an organization‘s portfolio. Projects in Manufacturing Organizations: A Holistic View

25. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 25 IT-SUPPORT Information is a critical resource without which no organization can function effectively. Projects undertaken by organiza- tions need information throughout their respective life-cycles, from initiation through planning and implementation til closure. Informa- tion is also needed to effectively monitor, evaluate and control pro- jects. To manage projects, organizations have established sophisticated and costly information infrastructures, consisting of networked hardware, databases and powerful project management softwares. Projects in Manufacturing Organizations: A Holistic View

26. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 26 ADMINISTRATION Many projects which an organiza- tion undertakes will require some level of general administrative support over their respective life- cycles. Administrative support and services can be rendered in many areas – for example, procurement support, help with formulating contracts, placing advertisements for specialized project staff in newspapers, assisting in setting up a project site office, arranging train- ing courses and providing security. Projects in Manufacturing Organizations: A Holistic View

27. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 27 FINANCE & ACCOUNTING FINANCE & ACCOUNTING All projects incur by definition a cost. This cost can be (relatively) small, for example, for a project to study and optimize an organiza- tion‘s process infrastructure. It can also be quite large, for example, for a project to set up a new production line, or to undertake an R+D project. When an organization concurrently undertakes several projects, each project incurs different levels of cost at different points of time in their respective life-cycles. The organization has to ensure that it has the financial resources needed to fully meet cost obligations at any point in time. Projects in Manufacturing Organizations: A Holistic View

28. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 28 HUMAN RESOURCES HUMAN RESOURCES Human resources are considered an organization‘s „most valuable asset“. They may also be consider- ed a projects most important asset. In assigning its human resources to a project, organizations must care- fully analyze and assess their quali- fications, expertise, competence and experience for capably under- taking their project assignments. The organization must also decide if and what training is required and whether it should tap its existing human resources pool or hire new resources from outside in case of shortage. Project outsourcing may be considered. Projects in Manufacturing Organizations: A Holistic View

29. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 29 MISSION Vision Facilitative Services Policies Procedures Protocolls Systems Project Management and Strategic Management Programmes Projects Operational Plans Operational Plans Organiza- tional Design Organiza- tional Design Objectives Goals Strategies Strengths and Weaknesses of the Organization Opportunities and Threats in the Organization‘s Environment

30. Assistant Professor Dr. Aurangzeb Zulfiqar Khan Department of Management Sciences, COMSATS Institute of Information Technology, Islamabad, Pakistan 30 The Cost of Project Mismanagement (For Pakistan) Dawn, December 18, 2005