Chapter 1 - Introduction to Project and

PROJECT ENGINEERING Project Management

Contents:
1.1 Definition of Project, its characteristics, and
example of project.
Chapter 1 - Introduction to Project and 1.2 Classification of Project
Project Management 1.3 Project Objective and Goal
1.4 Project life Cycle Phases
1.5 Project Environment
-Er. Sandip Duwadi
1.6 Introduction to Project Management
Asst. Professor
Pashchimanchal Campus

PROJECT
Measuring height of Everest
Water Supply Project
Project
Bridge Construction
Hydropower Project
Project
Telecommunication
Higher Education Project
Project
Environment Protection Human Right and Civil
Project Liberties Project
Running a campaign for Research and
political office Development Project
PROJECT ?? Writing a thesis, book

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 PROJECT Project
• A project is a series of unique tasks that need to • A project is a combination of human and non
be completed to reach a specific outcome. human resources pooled together in a temporary
organization in order to meet the target.
• A project can also be defined as a set of inputs and
outputs required to achieve a particular goal. • A project involves a single definable purpose, end
item or result usually specified in terms of cost,
• According to the Project Management Institute time schedule and performance requirements.
(PMI), the term Project refers to ” to any • It is a process of working together to achieve a
temporary endeavor with a definite beginning and goal during the process project pass through
end”. several distinct phases called project life cycle.

Project … Characteristics of Project

• Project is one shot , time limited , goal directed,  Specific Goals and Objective: Project are meant to fulfill
major undertaking requiring the commitment of certain objectives and goal of a program or plan.
varied skills and resources.  A time frame for completion: A project is not a
continuous process. It must have start and completion
• For a project to be successful it should be
date.
technically feasible, economically viable, politically
stable and socially acceptable.  Temporary Organization and team: Project being of
temporary existence with certain start and finish date,
• Every project has two phases the organization and team who are responsible for the
1. Planning : It involves definition of tasks or activities to be completion of a project is also of temporary nature.
performed to achieve specific objectives.  The team composition will also be different at different stages
2. Implementation: The implementation of the project of a project and after completion of project the team has to
convert the given input or resources into out put or result. disperse if there is no similar type of project.

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 Characteristics of Project Characteristics of Project
Rapid Expenditure: Project come up in the form of  An involvement of several people and numerous
investment for better return. Hence the level of collaborating organizations- suppliers, designers,
expenditure is very high compared to the plan or contractors, experts of different discipline etc.
program of permanent nature.
 A limited set of resources ( 5 Ms’ Material, money,
Demanding Time Scale: The objectives and goals are manpower, machine, minutes )
to be fulfilled by the project can be better
materialized if the project is ready in all respect for  Uncertainty and financial risks
operation, within certain date fixed at the very initial  No benefit to the client until project is in operation
stage of a project. Hence the duration of the project  Sequencing of activities and phases.
is fixed and the job to be completed within that time  High level of subcontracting
frame which need a very tight schedule
 Uniqueness: No two projects are similar in all aspects.

Characteristics of Project Classification of Project

According to FUNDING
1. Private sector project:
• These project are the basis of private investment.
• The private sector bodies are responsible for the
development and sponsor of the project.
• Example : Pokhara Trade Mall, Ncell, Midtown etc.

2. Government Sector Project:

• These project are the basis of government
development plans.
• Government is the major sponsor of the project.
• Example: Road and Bridge project, hospitals etc.

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 Classification of Project
Classification of Project
According to the Foreign Aided Project:
According to FUNDING 1. Joint Venture Project:
3) Grant project: • This project is funded through collaboration of foreign and local
• These are those projects where the investment in investors. They involve transferring of capital, technology,
project is not repaid by the governments to the donor management. They are based on the ownership sharing. Example:
Everest bank, Maruti- Suzuki etc.
agencies.
2. Bilateral Project:
4) Loan Project: • This project is funded from the financial resources of a friendly
• These are those project where the investment of the donor, country, generally through grants under an agreement.
Example JICA,KOIKA etc.
project is repaid by the government to the donor
agencies.
3. Multilateral Project:
• Example: Pokhara International Airport • This project is funded from the financial resources of multilateral
donors such as World Bank and Asian development bank. They are
generally funded through loans.

Classification of Project Classification of Project

According to Technique: According to Orientation :
1. Labor intensive project: 1.Product oriented
• This Project is labor based. Human labor • The focus is on the technical content of the
extensively used for implementation of the project. Examples- Building, Roads, Bridge etc.
project.
2.Process Oriented
2. Capital Intensive project: • No consideration is given to technical context.
Examples- Person ,Focused Training, repir of
• This project is technology based. Technology
represented by machinery , automation and cement Plant etc.
computerization is used to implement the project.
What are their Advantages and Disadvantages ?

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Classification of Project Classification of Project
According to Scale and Size : According to Scale and Size :
1. Mega 3. Medium
• It is a big size complex project for 5 to 10 years • It is small in size than major project. Eg. Khimti/
involving huge investment and high technology. Bhotekoshi/ Jhimruk hydropower project
Upper Karnali hydropower project is the major
example of mega project of Nepal 4. Small
2. Major • It is the smallest project of short duration. Manang
• It is smaller in size than mega project. Middle Hydropower is an example.
Marshyandi hydropower is the example of major 5. Micro
project in Nepal. • It is the smaller and are of very short duration.

Classification of Project Classification of Project

According to Time Frame and Speed. According to function:
1. Disaster Prevention projects
1. Normal
2. Development Projects
• Normal time is allowed for project implementation.
2. Crash
3. Service sector project
• Saving in time is achieved by spending extra money and 4. Environment friendly projects etc.
resources. Overlapping of the project phases is
encouraged.

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Classification of Project National Pride Projects
According to Nature of Project.
• Simple
• Complex
• Innovative
• Emergency.

National Pride Projects Project Objective and goals

• A project has clearly defined objective. The project

objective is defined in order to.
– Make sure that we have indentified the right
target.
– Create team commitment and involve all
interested parties in achieving the successful
project outcome.
• The objectives and goals of the project should be;
SMART

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 Project Objective and goals Project Objective and goals
SMART
Specific
• The project objectives must be specific.
• Setting out specific objectives require careful planning
and input from the project team members involved
and if necessary the external consultants and experts.
• The objective should explain what we really want to do.
• For eg. Setting out objectives as “construction of road “
is not specific as it does not tell us about when, where,
and which road will be constructed and who is going to
construct it.

Project Objective and goals Project Objective and goals

SMART SMART
Measurable: Achievable:
• The project objectives should be measurable in terms of its • A goal is said to be achievable when its accomplishment is
benefit and achievements. If the goals is not measurable it is not
possible to know whether a team is making progress towards within reach. The goals for the project need to be
successful completion or not. attainable. The goals should be something that you have
• Measuring progress is supposed to help a team stay on track skills and abilities to achieve it.
and reach its target. Indicator should be quantifiable. • The goals are neither out of reach nor below the standard
• A measurable goal will usually answer the question such as: performance since these are considered meaningless.
How much? How many? How will I know when it is accomplished? • Eg.” I want to be a civil engineer within two year” This is not
achievable goal as it takes 4 years to complete the
• Eg. This year the company will increase the monthly product by engineering.
20% from 1500 to 1800 pieces. We will be definitely be able to
measure these goals within our targeted time frame.

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 Project Objective and goals Project Objective and goals
SMART SMART

Realistic Time bound

• Goals must have specific timeframes. We must have a
• A realistic goal is one that is within a practical deadline by which the goal is accomplished. Setting a
range of achievement. The goal should be meeting deadline reinforces the seriousness of the goal in our
by using available resource, effort and finance. The mind. It motivates to take action.
goal which is not realistic is meaningless. • When we don’t set a time line, there is no internal
pressure to accomplish the goal.
• Eg. Increase of sales by 20% in 20 weeks . This is a • A time bound goal is intended to establish a sense of
realistic goal but increase 20% sales within a week urgency.
may not be realistic objective. • Eg. Labour training program commence on 29 may
2016 and last for next two weeks.

Project Objective and goals Project Life Cycle and Phases

• Project depending upon the nature, size and type

undergoes through the different well defined phases
right from inception to successful completion.
• The following important five phases contribute to
develop a project from the idea to reality.
Initiation Phase
Planning Phase
Engineering and Design Phase
Implantation Phase
Termination Phase

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 Project Life Cycle and Phases Initiation Phase

This phase includes

• Conceptual Study: The projects are born with creative
ideas. It includes primary evaluation of ideas, such as
project identification, project formulation.
• Feasibility study: the objective of the feasibility study
is to have more detailed information about the
location, nature, dimensions, raw material needed,
equipments, cost benefit analysis, and the detail
about the users who will be benefitted by the project.

Initiation Phase Planning Phase

• This phase include
• Work Breakdown Structure: the project is broken down
• Market Study: It includes the study of the in to small elements so that all the activities to be
marketing prospects and demand of the product performed in the project are included.
considering potential size and composition of the • Cost and Schedule planning: After breaking down of the
market and present and projected demand of the project, the time and cost of each activity is determined
and overall time and cost of the project is determined.
product / services. • Contract terms and condition: the contract terms in
which the project activities are to accomplish is
determined in this phase. The contract may be lump-
• After completion of Initiation phase a go/ no go sum, fixed price, unit rate etc.
decision is made. • At the end of this phase time and cost estimate of the
project is made and major contracts are let.

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 Engineering and Design Engineering and Design
• This phase includes 2. Detail Engineering Design
1. Preliminary Engineering and Design • It involves the successively breaking down,
• It stresses architectural concepts, evaluation of analyzing and designing the structure and its
technological process alternatives, size and elements.
capacity decisions and comparative economic
studies. • This detail phase include architects, interior
designers, landscapes architects and several
• In designing dam, hydropower, irrigation channel
preliminary engineering requires the analysis of engineering disciplines including chemical, civil,
hydrological analysis, geological condition etc. electrical etc.

Implementation Phase Termination Phase

This phase includes • This phase is the end of the project is brought to
• Application of paper work physically in the real field. its completion.
• Manufacturing, installation of machines and testing • In this phase final testing and maintenance of the
and civil works. project is done and handed over to the customer
• Controlling is performed to check project and resources are released to other project.
performance at any point of time during • The basic tasks in this phase are evaluation and
implementation. hand over the project to the beneficiaries.
• The facility is substantially completed at this phase.

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 Project life cycles Project life cycle Phases

• Project life cycles in terms of resources / risk and time

• Cost and staffing levels are low at the start, higher
towards the end, drop rapidly as project draws to a
conclusion.
• The probability of successfully completing the project
is the lowest and hence risk and uncertainties are
higher at the start. The probability of successful
completion gets progressively higher as the project
continues.

Project life cycle with resources Project life cycle and Risk

Formulation Planning Execution Finish

Formulation Planning Execution Termination

•Identification •Feasibility •Implementation •Evaluation

Resources (Efforts)

•Formulation •Appraisal •Control •Handover

Risk/Amount
•Design Risk

Project Time Project Time

Resources = Cost and Staffing

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 Project life cycle and Risk Project life cycle with resources and risk

Project Environment External Environment

• The external environment of a project comprises of all
• It is the collection of element which affects the project entities that exist outside its boundary but have a
performance. significance influence on its growth and survival.
• The project environment is dynamic and has high • A project has little or no control on this environment but
probability to change during the projects life cycle. needs to constantly monitor and adopt to these external
• The changes in the project environment should be changes as proactive and reactive response lead to
identified, analysed and understand as they occur during significant different outcome.
the course of the project. • The factors that affect the project environment are
• The project environment can be classified as 1. Political factor
1. External Environment 2. Legal factor
2. Internal Environment 3. Economic factor
3.Task Environment 4. Social factor
5. Technological factor

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 External Environment
Political factor:
Legal Factor
• It takes country’s political situation. It also takes the
global political conditions effect on the country and
business. When conducting this steps ask question • Legislative changes take place from time to time.
like “what kind of government leadership is impacting Many of these changes affect the project
decision of firm or project?” environment. Some legal factors are:
• Some political factors that affect the project external
environment are:  Employment regulations
 Government policies  Product regulations
 Taxes and laws  Health and safety regulations
 Stability of government  Laws and court decisions.
 Entry mode regulation

Economic factor Social factors

• It involve all the determinants of the economy and its state. • Every society has distinctive mindsets. These attitudes
These are factors that can conclude the direction in which have an impact on the project. The social factor might
right economy move. ultimately affect the sales of products and services.
• The factor affecting the project external environment are:
1. Inflation rate
• Some social factors are:
2. Interest rate – The cultural implications
3. Credit accessibility – The social lifestyle
4. Unemployment rates – Domestic structures
5. Monetary or fiscal policies – The gender and connected demographics
6. Foreign exchange rates – Education levels
– Distribution of wealth

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 Internal Environment
Technological factors
• The study of the internal environment focuses on the
• The technology is advancing continuously. The project objectives, constraints, and resources that
advancement greatly influences the project. directly influences the project.
Technology alters time to time. That is why project 1. Objectives
needs to stay update with the changes. The project
• The project objective describes the projects’ outcome.
can use these factors for their benefits.
1. New Discoveries • It directly influences the project as any changes in
2. Rate of technological obsolescence
objective may change the end result
3. Rate of technological advances 2. Constraints
4. Innovative technological platforms • A project operates within the constraints of time, cost
and quality performance

Task Environment
3. Structure
• A project should have particular structure. • The project environment which affects its ability to
reach goals. Any business or consumer with direct
• A group of different people having the different involvement with the project may be a part of task
knowledge and skills working together to meet the environment.
objectives form a project structure. It includes:
4. Resources • Client: It is a person or organization which invests in
the project and takes benefit from it. The project must
• Project requires different types of human and non
satisfy the need of client.
human resources.
• Contractor: Contractor implements the project in
• Any effect in the resources affects the project field. Contractor tries to maximize the profit and
directly influence the project.

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 Project Management
• Consultants: As they are involved in design and
other activities, they directly influence the project.
• Suppliers: Equipments , materials, labours are • Management is Getting things done by others
supplied by the supplier. They effect the efficiency, • Money makes things possible, people make things
quality and schedule of the project through happen
delivery timing. • Management is a science - Use of systematic
• Government: Government policies, facilities etc. approach or objective study of the problems are to
affect the project environment be taken
• Finances: They provide fund to the project.
• Management is an art – man management.
• Competitors: They compete for the project which
affect the projects product and services.

Project Management Project management vs General Management.

• Project management is the planning, organizing , directing General Management Project Management
and monitoring of all aspects of a project and the
Responsible for managing the status quo Responsible for overseeing change
motivation of all involved to achieve project objectives safely
and within defined time, cost and performance. Authority defined by management Lines of authority ‘fuzzy’
structure
• Elements to be taken in to consideration in managing the Consistent set of tasks Responsible for cross-functional activities
project.
Works in ‘permanent’ organizational Operates within structures which exist for
1. People : the project team, boss, and sub ordinates others structures the life of the project
2. Resources : 5 M that is what required to accomplish the Tasks described as maintenance Predominantly concerned with innovation
construction Main task is optimization Main task is the resolution of conflict
3. Methods: the method of statement and procedures for doing Success determined by achievement of Success determined by achievement of
things. interim targets stated end-goals
Limited set of variables Contain intrinsic uncertainties
4. Goal and objectives: for what , resources and the people are
directed towards.

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 Assignment – 1(i)
Make a complete note on your note copy itself (with
proper figures, charts , tables where ever possible) on
following topics :
 Definition of Project, its characteristics, and example
of project.
 Classification of Project
 Project Objective and Goal
 Project life Cycle Phases
 Project Environment
 Introduction to Project Management

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