Chapter 1

Introduction to Project
Planning & Management
 Learning outcomes
◼After finishing this chapter, you will be able to:-
◼Define projects
◼Differentiate between project and non project
activities
◼Describe the characteristics of projects
◼Compare program with projects
◼Describe project cycle
◼Define project management, its constraints and
challenges
What was the first project of mankind?
The Mammoth Hunting
 Introduction
◼ Resources are scarce both in the private and the public
sector.
◼ Concern for decision makers - securing value for
money from every investment, i.e., compare the net
benefits and costs of an investment
◼ Projects help in securing value for money
◼ Not the same criteria or measurement
◼ Private- NPV, IRR, Payback period etc.
◼ Public projects- cost-benefit analysis, Relevance,
sustainability, efficiency
5
 Introduction
◼ Projects are one of the principal means by which we
change our world/implement strategic plan
◼ Whether the goal is to split the atom, tunnel under the
English Channel, introduce Windows 11, or plan the
next Olympic Games, the means through which to
achieve these challenges remains the same: project
management.
◼ Project management has become popular tools for
organizations, both public and private, to improve
internal operations, respond rapidly to external
opportunities, achieve technological 6
 Introduction
◼ New product development, and more robustly
manage the challenges arising from the business
environment
◼ Public project management is one of the basic tools for
modern public administration.

7
 Why Deal with project Planning &
Management?
◼ to make certain that bad projects are not chosen and
/to prevent good projects from being rejected
◼ to determine if components of projects are consistent
with the objectives
◼ to assess the sources and magnitudes of risks and how
to reduce risks and efficiently share risks
◼ to alleviate uncertainties(time, cost, resources etc.
◼ to increase the effectiveness and efficiency of
operations
8
 What is a project?

◼ A project is a temporary endeavour undertaken to

achieve a particular aim or to create a unique product,
service, or result
◼ A project is any scheme where resources are invested
to create capital assets that produce benefits over a
period of time.
◼ PMI define projects as a one-shot, time limited, goal
directed, major undertaking, requiring the
commitment of varied skills and resources in a
temporary organization to achieve a specific purpose.
 What is a project?

◼Examples
◼ Construction of a bridge or a house
◼ Development of software for a new business process.
◼ Installation of machinery in a factory.
◼ Relief efforts after a natural disaster
◼ Software development
◼ Developing a training course.
◼ Can you provide more examples of
projects?
Project vs Operations
Project vs Operations
Characteristics of project

◼ Objective/scope/outco
me/deliverable- a plan
towards a clear intended
result
◼ Temporary- Has a defined
beginning and end when the
objectives are achieved or
abandoned
◼ Resource constrained –
limited resources
allocated to it
 Characteristics of project

◼ Multidisciplinary-Cuts across functional areas/involves

people from various professions
◼ Unique- Intended to be done only once, not repeated and
intended to produce completely new product or service or
creation of new process
◼ Complex-
◼ Involve risk and uncertainty
 Project vs programs

◼ Basically, project is a single endeavor, program is a

group of related projects
◼ Programs are collections of projects together that
constitute a complete package of work.
◼ The program's overall objectives are achieved through
the complementarity of the various projects.
◼ Therefore, a program is wider in scope than a project
◼ Example: Program: Higher Education expansion
program. Project: construction of a buildings in Tepi ,
Debretabor, Oda Bultum Universities etc.
 Which of these are projects?

◼ Responding to a request from Addis Ababa City

Administration to design a training course by March
2023 on Project Management, for 2500 City
employees with a budget of ETB 5,000,000
◼ Responding to e-mail from a boss requesting a
departmental-wide performance report, on the last
Friday of each month for the foreseeable future
◼ Organising a yearly team building day
◼ Planning your annual vacation/holiday on the coming
June
 You need to do these main things…..

Or else this will happen…..

 Which of these are projects?

◼ Objective -Have a relaxing holiday and return to work

refreshed and energised...
◼ Book a holiday- What you can afford, Where you want
to go, What type of holiday (beach, partying, skiing),
How long, Who with, What type of location
◼ Pack- Go through wardrobe, Write a list of everything
you want to bring, Write a list of everything you
need/want to buy, Decide how much you have to
spend, Go shopping
◼Get on the plane, Book a taxi, Check tickets, money,
passport
 Project cycle

◼ Projects take place in several distinct stages commonly

referred to as the project cycle, i.e., logical sequence
of activities to accomplish the project’s goals or
objectives
◼ These phases are closely linked to each other and
follow a logical progression, with the later stages
helping to provide the basis for renewal of the cycle
through subsequent project work.
◼ Different terms and phrases can be used to describe
the various stages of the project cycle
 Project cycle

◼ IPMA- Initiation, Planning, Implementation, Closing

◼ Patel (2000)- Concept, Planning, Execution,
Termination
◼ Gittinger (1996 )- Identification, Preparation and
analysis, Appraisal, Implementation, Evaluation
◼ PMI- Initiating, Planning, Executing, Controlling,
Closing
◼ World Bank-Identification; Preparation; Appraisal;
Promotion, Negotiations, Board presentations;
Implementation and supervision; Evaluation
 Project cycle- UNIDO manual
Phase 1 – Pre-investment

Opportunity Prefeasibility Feasibility Appraisal &

study study Study Decisions

Phase 2 – Investment

Construction Commissioning
Negotiation and Engineering & Manpower
Contracting Design & start up
training

Phase 3 – Operation

Phase 4 – Evaluation
Project cycle
 Project cycle

◼ Initiating phase - major activities

◼ Project sponsor/source of financing is identified
◼ Scope and deliverables are defined
◼ Relationship to organizational goals is key
◼ Budget is approved
◼ Broad statements are made about risks, approach,
timelines
◼ Stakeholders are identified
◼ Project team established and project Manager is
assigned
 Project cycle

◼ Planning phase - major activities

◼ Deliverables are clearly defined
◼ Based on the deliverables, a work breakdown
structure or WBS defines the “work packages”
◼ The work packages are used to develop a schedule
◼ Plans are made for management of stakeholders,
communication, quality, costs, risks, procurement,
resources including human resources
 Project cycle

◼ Implementation/execution phase - major activities

◼ Project team is hired and developed
◼ Procurements take place
◼ Project work is underway
◼ Project must be monitored, and changes managed
◼ Communication to stakeholders is an important
ongoing activity
 Project cycle

◼ Closing phase - major activities

◼ Reporting
◼ Closing out procurements—final payments
◼ Identify lessons learned
◼ Celebrate- the success with the project team.
 Project Management(PM)- definition

◼ PM is application of knowledge, skills , tools &

techniques to project activities in order to meet
stakeholder needs & expectations from a project
◼ It is the planning, organising, directing and controlling
of activities, people and money to achieve the project
objective
◼ Ultimate goal- completion of project on time within
budget without comprising quality (traditional
measures of project success)
◼ More effective measure: satisfied customer/clients
 PM-Why?

◼ Basic question- to what extent we can be successful in

project without having a body of knowledge?
◼ Without Project Management, it’s rather adventures
•
 PM-Why?

◼ Without PM reality is different from design

◼ Without PM a project could turn in to a complete
mess
 PM-Advantages of using formal project management

◼ Better control of financial, physical, and human

resources
◼ Improved customer/client relations
◼ Shorter development times
◼ Lower costs
◼ Higher quality and increased reliability
◼ Improved productivity
◼ Better internal coordination
◼ Higher worker morale
 PM-PMBOK knowledge areas

◼ Project integration- coordination of all activities

◼ Managing Scope – deliverables
◼ Managing Time/Schedule- PERT, CPM, Gannt Chart
◼ Managing Costs – develop budget, plan CF & control expense
◼ Managing Quality- meeting quality standards
◼ Managing Human Resources
◼ Managing Communication- both with in and outside of team
◼ Managing Risks- identify, analyze and manage risks
◼ Managing Procurement- securing supplies and services
◼ Managing Stakeholders
 PM-expertise needed

◼ Application knowledge
◼ Industry in question
◼ Technical specialty
◼ Managerial area
◼ Understanding the project environment
◼ Cultural, social, political, international, physical
◼ Management knowledge and skills
◼ Interpersonal skills
◼ Communication, influence, leadership, motivation, negotiation, problem
solving and conflict resolution
PM-dimensions
PM-Triple constraints/Iron triangle
 PM-Triple constraints

◼ Scope- comprises the tasks necessary to achieve the

project’s goals/objective
◼ Cost/budget- is the financial constraint
◼ Time- represents the project’s scheduled completion
◼ The word 'iron' is used since a change in one of the
constraints directly impacts the others.
◼ E.g. if a project must be completed by a specific deadline,
the scope may need to be reduced, or costs increased to
accommodate additional resources or overtime. Or if a
project cannot exceed a budget, the project manager may
need to extend time to reduce overtime used.
 PM-Triple constraints

◼ PM basically is a balancing act between these

constraints
Common problems in PM
 Public vs private sector projects

◼ Although the principles and techniques of Project

Management remain the same
◼ Contexts of public sector project management is
different from the private sector (market vs politics)
1. Political setting
◼ Project managers in the public sector operate in the
political setting.
◼ Projects are typically identified by politicians or are
the results of policy decisions that they make.
 Public vs private sector projects

◼ Politicians also provide input, monitoring and

oversight
2. Immaturity of Project Management knowledge
◼ Compared to the private sector, the body of
knowledge public sector PM is relatively immature.
◼ There is the need to entrench project management
deeper into the public sector; integrating PM in overall
government and public service approach, and
organizational culture; and development of
standardized project methodology for Government
 Public vs private sector projects

◼ Attempts were made to copy the best practices from

the private sector.
◼ However, is that the way in which private sector best
practices are applied does not always match public
sector realities.
3. The developmental nature of project
◼ Public projects are planned to bring about societal change
◼ People's needs must be responded to, and the public must
be encouraged to participate in policy-making compared to
more product-driven, profit-orientated projects in the
private sector
 Public vs private sector projects

4. Statutory and regulatory framework

◼ Project managers in the public sector must always
operate within the confinements of national
legislation and departmental policies.
◼ E.g. tender, procurement, finance regulations
5. The Public Service spirit & management culture
◼ “management freedom” vs “bureaucratic inertia‟
◼ creativity and flexibility necessary to successfully
manage projects effectively vs deep-rooted
hierarchical structures and practices)
 Public vs. Private Perspectives
Private Public

Promoter Private forms Government

Primary Objectives Financial Socio-economic

Public involvement If legally required Essential

Time frame Short or medium Long term

Important Profit, ROI; Success in

measures efficiency meeting needs;
Cost-
effectiveness