Concept of Project

8/8/2019 Concept of Project

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CONCEPT OF PROJECT

Er. Deepak Shrestha


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Concept of PROJECT

What is your view about PROJECT?


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1. Concept of PROJECT

A PROJECT is a planned investment undertaken to

deliver a unique product as output.

Project is not a physical objectives nor it is an end

result.

Projects operates within the constrainof time, cost

and quality performance.

Projects should be economically viable, technicallyfeasible, politically suitable and socially

acceptable.


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Concept of PROJECT

According to Cleland and King:

A project is a combination of human and non-

human resources pulled together in a temporary

organization to achieve a specified purpose.

According to Project management Institute of USA:

Project is a one shot time limited, goal directed,

major undertaking, requiring the commitment ofvarious skilled and resources.


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Concept of PROJECT

According to Harold Kerzner:

A project is any series of activities and tasks that:

have specificobjective to be completed withincertain specifications

have defined start and end times

have funding limit

consume resources.


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Concept of PROJECT

S. Choudary:

Project starts from scratch with a define

mission, generates activities, involving varietiesof human and non human resources all directed

towards fulfillment of mission and stop once the

mission is fulfilled.


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Types of PROJECT

Research and development: military weapons

Construction Engineering Projects: bridge, Highway,Building, airport, dam, tunnel, electrification etc

Development ofcomputer software, websites

ProducingTVcommercial, a movie

Industrial product or service

Development of aeroplane engines, automobile Training programs

Income generating projects for rural area


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2. Characteristics of Projects

1. Specific Objectives : A project has clearly definedobjective, which are predetermined.

2. Life Span: A project has a definite life span and cannotcontinue fore ever. The starting and end periods arespell out in the objective.

3. Constraints: A project always operates withinconstraints of time , cost and quality performance

4. Unique: each projects has some components that are

unique. No two projects are exactly similar.5. Team work: Project demand teamwork under the

leadership of project manager. Team consists ofdiversified workforce.


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2. Characteristics of Projects

6.Flexibility: Project are flexible and not rigid. Flexibility is necessary

tocontrol and manage project risk.

7.Resource Integration: A project consume and coordinate resources.

A project integrates physical, financial, human and informationresources.

8.Planning and Control: A project requires effective and efficient

planning and control system. Standards are set as yard stick.

9.Contracting and subcontracting: Most projects is characterized byhigh level ofcontracting and subcontracting. Various types of

contracts.

10.Beneficiaries: Project has beneficiaries, who are the users of output

of project.


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Types ofContracts

Turnkey contract

Lumpsum contract

Cost plus contract Peace work contract

Labour contract

Sub contract


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3. Project, Programme, System

PROJECT

A series of activities leading to a specificgoals has

to be completed within a certain

Time

Cost

Resources


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PROGRAMME

Programme is the first level of system. Programme is

a cluster of projects. It is integrated time phasedtask necessary to achieve a particular objectives. It

has a flexible life spam.


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Development PlanDevelopment Plan

AgricultureProgram

AgricultureProgram

WheatProjectWheatProject

LivestockProject

LivestockProject

PotatoProjectPotatoProject

RoadProgram

RoadProgram

Black topProject

Black topProject

Gravellingproject

Gravellingproject

HealthProgramHealth

ProgramOtherOther

A project without programme has no existence.


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Project Family Tree

PROJECT

PROGRAMME

PLAN = Plan is settingofgoals and choosing the actionto achieve those goals. eg. 5 yrs plan.

= Integrated package of related projects for aspecified sector. eg. Health programme.

= Single entity with specified objectivesoperating with in time, cost, quality constraints.eg hospital construction.

= Package of interrelated activities that aresimilar innature. eg. Sanitation package forhospital.

= Distinct work activity for a distinct purpose. egpreparationofcontract document for hospital.ACTIVITY

WORK PACKAGE


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Differences between project and programme

1. one time set of activities.

2. Well defined scope and boundaries.

3. Specified objectives

4. Fixed life span; beginning and end

time

5. Specified client and beneficiaries

6. Single entity with own budget

7. Integral part of programme.

8. Flexible rules and regulations

9. One Project manager

1. Groupingof small and big projects.

2. Multiple under taking; boundaries , scope forvarious projects.

3. Overall sectoral objectives for theprogramme as a whole

4. Flexible life span; projects time starts andend;continuity of prgm and plan period

5. Different clients and beneficiaries

6. Various entity and prgm budget

7. Integral part of a Devt. Plan.

8. Rigid rules and regulations.

9. Single prgm manager and many projectmanagers

PROJECT PROGRAMME


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System

System is defined as a combinationof parts forming a complex

unitary whole.

The system approach takes an integrated view.

It considered organization as a system. Organization is a systemconsistingof interrelated and interdependent components, which

form a unitary whole.

System is defined as an assemblage or combinationof things or

parts forming a complex or unitary whole.It is anorganized or organic whole consistingof several

interconnected and interdependent parts or sub system.

It is comprised of hierarchy offour interdependent parts:

Tasks, Technology, structure and peopleks,


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Characteristics of a System

Goal directed

Combinationofinterconnected and interdependentparts or sub system.

Can be openor closed system Contains hierarchy of system and subsystem

Exists ona continuous basis

Exhibits a holisticcharacter

Prod

uce sy

ner

gisti

ce

ffe

ct. Whole becomes grater than

sum of the parts.

Organization is anopen system or input-process- outputsystem.


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Model of system

Inputs

( human &non humanresources)

OutputsTransformation

Feedback


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Characteristics of a System contd.

A Plan is a system with different types of

programme as its sub system

A programme is a system with various projects

A project is a system with various activities as its

sub system


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Project Environment

Environment consists offorces that influence the

projects ability to achieve its objective.

Projects operate in a dynamic environment. Project environment can be classified into:

i. Internal Environment

ii Task Environmentiii. External Environment


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i. Internal Environment

Internal environment is located within the project. It is

Controllable by the project. It provides strengths

and weaknesses to the project.

The forces in the internal environment consist of:

Project Objective

Constraints

Structure

Resources


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ii Task Environment

The task environment of a project is made up of

stakeholders. They are either involved in the project or their

interests are affected by the project.

The elements of task environment are: Customer

Contractor

Consultants

Suppliers

Government

Financiers

Competitors

Labour Unions


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iii. External Environment

It is located outside the project. It cannot be controlled

by the project. The project can indirectly influence it. It

provides opportunities and threats to the project.

The forces in the external environment are: (PEST)

i. Political-Legal -P

ii. Economic-E

iii. Socio-cultural-S

iv. Technological-T


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Political-Legal -P

Political system; political parties, election system,

Political institution; legislature, executive, and

judiciary

Political Philosophies: democratic, totalitarianor

mixed

Legal Environment

Law

Court of Law

Law Administration


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Economic-E

Economic environment refers to all the economic

surroundings. Important components;

i.Economic system: free market, Centrally Planned

economy, Mixed economy

ii. Economic Policy: Monetary policy, Fiscal policy,

Industrial policy

iii. Economicconditions: Income, Business cycle, Inflationiv. Regional economicgroup: SAARC, EU, ASEAN


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Socio-Cultural Environment- S

Social Environment:

Social

Environment

2. Social

Institutions

4. Social Change3. Pressure Groups

1. Demographics


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Socio-Cultural Environment- S .

Cultural Environment: influence project by-

influencing the type of project, Creating attitudes

towards work and leisure


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Technological Environment-T

Technological Environment refers to all the

technological surrounding that influence project.

Technological

Environment

Pace of technological

change

Technology

Transfer

Research and

Development

Budget

Level of

Technology


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PROJECT LIFE CYCLEEr. Deepak Shrestha


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PROJECT LIFE CYCLE

A project is a series of activities aimed at bringing

about clearly specified objectives within a defined

time-period and with a defined budget.

The project cycle is a way of viewing the mainelements that projects have incommon, and how

they relate to each other in sequence.

AD

B's project cycle :The various stages from country programming to

project completion and evaluation are known

collectively as ADB's project cycle.


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PROJECT LIFE CYCLE

The various phases of project life cycle are:

1. Formulation phase

2. Planning phase

3. Implementation phase

4. Termination phase


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PROJECT LIFE CYCLE

ProjectLife

Cycle

FormulationPhase

PlanningPhase

ImplementationPhase

Terminationphase


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1. Project Formulation Phase

This conception is concerned with the germinationof

ideas of the project. The basic task in this phase consists

of:

i. Project IdentificationIt is the conception stage. The projects are germinated

with creative ideas. The sources of ideas can be

developed as:

Situation survey:

changes and developments in political, legal,

economic, socio- cultural and technological forces in

the environment.


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i. Project Identification

Internal sources :

Internal source can be the vision, mission, goals,

strategies, and plans of the organizations. The

management identify the opportunities and treatsand employees can also share ideas.

External sources:

Such sources are client requirement, donor priorities,legal provisions, and interest of the political leaders.


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ii. Project formulation

Project preparation and formulation and project

document formulation are simultaneous processes.

The project formulation task defines the parameter

of the defined project. Project formulation is concentrated with statement of

work and project proposal. It develops

Objectives and outputs of the project

Primary estimate of schedule, budget and

other resources.


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Statement of work ( SOW)

SOW defines :-

Scope and objective of project

Roles and responsibility of project participants

Schedule, cost and quality

Points of agreement between project participants


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Project Proposal

Project proposal is the blue print of the project activities.

Project proposal is divided into technical and financial part.

Project proposal is based on Prefeasibility study of the project.

Preliminary designof the project.

Project manager is appointed during the formulationof the project.


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ORGANOGRAM OF URBAN GOVERNANCE AND DEVELOPMENT PROJECT

Project Director-1

Project Deputy Director-1

Administration Section-9 Technical Section-8 Account Section-2

Admin. Assistant-1 Project Engineer-4 Account Officer-1

Assistant Admin. Assistant-1 Economist-1 Accountant-1

Computer Operator-1 Social Development Officer-1

Driver-3Sub-Engineer-2

Helper-2

Sweeper-1


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2. Planning Phase

This phase starts immediately after conception phase.

This phase is also known as project execution plan work.

This phase plans resource utilization, prepare detail

plans, estimates, time, cost, and quality.

The basic tasks of this phase of the projects are

a) Feasibility study

b) Appraisalc) Detail design


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2. Planning Phase

a) Feasibility study

This determines the implementability of the project.

The areas for which analysis is done are:

i. Technical Analysis : technical specification, alternatives

ii. Financial Analysis : financial sustainability, obligation

iii. Management Analysis: mgmt system tocontrol, implement

iv. MarketingAnalysis : acceptable for society

v. EconomicAnalysis : cost / benefit analysis

vi. Environmental Analysis : IEE/ EIA


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2. Planning Phase

b) Appraisal

It is evaluationof project s ability to succeed. Appraisal addresses:

Ability of the project to achieve its objectives.

Comparability of the project with other projects in terms of investment,cost/ benefit, job creation, profit.

Project Approval

Project selected through appraisal are formally approved by the authorities.

Approval involves:Finalizationof proposals, agreements and contract documents.

Allocationof resources to the project and appropriate regulations for the

project.


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2. Planning Phase

c) Design

Design is concern with:

Preparationof blue print of engineering design and

specifications for construction, facilities equipment, etc.Preparationof detail implementation plan and work schedules.

Allocationof role and responsibilities.


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3. IMPLEMENTATION PHASE

This phase focus on action and is more or less whole

project.

Almost eighty percent of project work is performed in

this phase.

The basic tasks of implementation phase

are:

Implementation Control


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3. Implementation Phase

Implementation

Actual work is done in this phase.

The activities are:

Tasks are allocated to the team members.

Decisions are made for procurement of equipment, resources

and services.

Mana

geme

nt i

nformati

onsystem is set

up.

Project manager motivation lead the team.

Time schedule is followed.

Construction work starts.

Project plans are pursued and adjustments are made as needed.


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3. Implementation Phase

Control

Control involves supervision and control of project performance

to provide feed back for correction.

Critical path method(CPM), programme evaluation and reviewtechnique (PERT) and other net work analysis are used for

controlling purposes.

Monitoringof the project is done.


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4. Termination Phase

This phase involve the handover of the project

product. The basic tasks in this phase are:

a) Project evaluation

b) Project handover


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Project evaluation

Evaluationof the project serves as inputs to the conceptual and

definition phase for new project infuture.

Evaluationcan be carried out during implementationor afterthe completionof the project.

Evaluation helps to improve future project planning and

management.


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Project Handover

Project handover starts when the project work come to end.

This involves following tasks:

Handingover the completed project toclient. Project organization is dissolved.

Human and non-human resources are transfer from the project.

Project account are closed materials and inventory are adjusted,

dues collected and out standing payments are made.

Project is terminated.


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