Project Management Lecture Note

Chapter 1: INTRODUCTION
1. Meaning and definition of project
1.1. Meaning of project
The Term project came from Projection means looking into future. The term project in general
means shoot forward, or to scheme, or plan something to be done. Actually Project means –one
time job that has definite starting and ending dates, a clearly specified objective, or scope of
work to be performed, a predetermined budget, and usually a temporary organization which
disappear once the project has been completed. In other words, project refers to an investment
activity where resources are used to create capital asset that produce benefits over a long period
of time and has a beginning and an end with specific objectives.
1.2. Definition of a Project
√ What is a project?
The Webster’s New World Dictionary defined a project as follows:
Project is a proposal of something to be done; plan; scheme; an organized undertaking;
specifically,
√ A special unit of work, research, etc., as in school, a laboratory, etc.
√ An extensive public undertaking, as in conservation, construction, etc.
A project is a series of activities designed to achieve a specific outcome within a set budget and
time frame. A project has clear start and end points, a defined set of objectives, and a sequence
of activities in between. A project is a problem scheduled for solution.
In general, it is very difficult to find a single comprehensive definition of project because
projects are different in terms of their nature and objectives. But, Some of its definitions are:
i. Project is an investment activity in which specific resources are committed within a
given time frame, to create capital assets over an extended period of time in expectation
of benefit that exceeds the committed resources.
ii. A project is a temporary endeavor employed to create a unique product, service or
results.
iii. Projects are a group of activities that have to be performed with limited resources to
yield specific objectives, in a specific time, and in a specific locality.
iv. A project is a unique set of coordinated and controlled activities, with definite starting
and finishing points, undertaken by an individual or organization to meet specific
objectives within defined schedule, cost and performances.
1.3. Features of project
The following are common features of a project:
√ A project involves a single, definable purpose and well-defined end items, deliverables or
results, usually specific in terms of cost, schedule, and performance requirements.
√ Project involves the investment of scarce resources in expectation of future benefits.
√ Project has a defined set of objectives and specific start and end dates.
√ Every project is unique in that it requires doing something than was done previously. A
project is a one-time activity, never to be exactly repeated again.
√ Projects are temporary activities. Each is an ad hoc organization of personnel, material,
and facilities assembled to accomplish a goal within a scheduled time frame; once the
goal is achieved, the ad hoc organization is disabled. Projects are terminated when the

Compiled by Gemechis J. Dandi Boru College Shambu Campus Page 1

 Project Management Lecture Note

objectives are achieved, conversely, if the objectives cannot be met. This implies that
projects have temporary opportunities and temporary teams.
1.4. Projects, Programs and Plans
There is some degree of relationship between project, plans and programs. There are also
significant differences.
a. Programs and projects
Program is a definite plan or scheme of any sequence of operations aimed at the attainment of
the planned objectives. It is a plan of objectives with general objectives that would be derived
from the development plan.
Examples:
o A road development program,
o A health improvement program,
o A nutritional improvement program,
o A rural electrification program, etc.
A program and a project are often used interchangeably but they are not one and the same. They
have got their own differences and similarities. While a project refers to an investment activity
where resources are used to create capital assets, which produce benefits over time and has a
beginning and an end with specific objectives, a program is an ongoing development effort or
plan which may not necessarily be time bound. For clarity purpose, let’s outline some of their
major differences and similarities.
As can be shown below, a project is narrow than a program in terms of technical performance,
time and resources (scope). A program most of the time consists more than one project.

Differences
Program Project
Scope/objectivities Wide/diverse Narrow/limited
Location Diffused/wide Specific
Life time Non-time bound Time bound
Beneficiaries Not specific Specific
Resources Large budget Limited budget
Similarities
o Both have objectives
o Both require resources such as financial, human, material, etc.
o Both generate output(goods or services)
o Both involve future
o Both serve as instruments for the execution of development plans in order to develop the
national economy.
N.B. Projects are tools for implementing program objectives, i.e., the project objective must aim
at meeting the program objectives. In other words, programs are collection of projects and
projects must be completed in specifies order for program to be completed. Thus, all projects can
be programs where as all programs are not projects.
b. Project Planning
The project plan is used to guide execution and control of the project. It forms the basis for all
management efforts associated with the project.
The project manager and project team develop the project plan through execution of the project
planning processes and present the plan to management for approval.

Compiled by Gemechis J. Dandi Boru College Shambu Campus Page 2

 Project Management Lecture Note

A project plan is a formal approved document that is used to guide both project execution and
project control.
Information documented in the project plan evolves as the project moves through multiple
iterations of the planning process. Changes made to any component of the project plan can affect
other plan components and thus requires the review of all planning documents. The project plan
is actually a combination of numerous component plans that are developed during the project
planning phase. The project plan usually contains the following elements:
 General project information: This will contain, among other things, a record of the project
object objectives and project scope and outline of the costs, timing and specification the work
to be done.
 Performance plan: List the project objectives, performance goal for each objective, and
briefly describe the methodology for how the performance goal is measured.
 Work breakdown structure: This is a detailed work breakdown structure, drawn up to a level
at which control will be exercised during implementation phase of a project. It uses as
specification for all tasks.
 Resource plan: Provide a detailed breakdown of resources, other than funds, required to
execute the project. Identify the skill level, associated task, duration required, available
time period, and cost, unit of cost and level of risk associated with those resources.
 Project schedule: Schedule starting and finishing dates of all activities on the WBS are
needed. Major milestones should also be identified.
 Project budget: This section provides the expenditures and source of funding for the project
during the life of the project. Identify and explain deviations from the approved funding
outlined in the asset project charter. This budget does not include expenditures and funding
for the life of the asset produced. Lifecycle costs for the asset are addressed on project
initiation.
 Risk plan: This should describe the process for identification of risk, evaluation and
prioritization of risk, identification of options for mitigation risk, the process for maintaining
the risk plan and risk monitoring, and the responsibilities of individuals.
 Communications plan: This section documents the information requirements of the
stakeholders and defines the procedures to meet those requirements. The plan details what,
when and how information is collected and reported.
 Change management control plan: This part provides the means to control and manage
change during the execution of the project plan.
1.5. Project Management
Project management is facilitation of the planning, scheduling, and controlling of all activities
that must be done to meet project objectives. It is the planning, control and coordination of all
aspects of a project, and the motivation of all those involved in it, in order to achieve the project
objectives.
1.5.1. Overview of project Management
Project management is the application of knowledge, skills, tools, and techniques to project
activities in order to meet or exceed stakeholder needs and expectations invariably involves
balancing competing demands among:
Scope, time, cast, and quality
Stakeholders with differing needs and expectations
Identified requirements (needs) and unidentified requirements (expectations).
The following are project management knowledge areas:
1. Project integration management

Compiled by Gemechis J. Dandi Boru College Shambu Campus Page 3

 Project Management Lecture Note

 Describes the process required to ensure that the various elements of the project are
properly coordinated.
 It consists of project plan development, project plan, execution, and overall change
control.
2. Project time management
 Describes the processes required to ensure timely completion of the project.
 It consists of activity definition, activity sequencing, activity duration estimating,
schedule development and schedule control.
3. Project cost management
 Describe the process required to ensure that the project is completed within the approved
budget.
 It consists of resource planning, cost estimating, cost budgeting, and cost control.
4. Project quality management
 Describes the processes required to ensure that the project will satisfy the needs for which
it was undertaken.
 It consists of quality planning, quality assurance, and quality control.
5. Project HRM
 Describes the processes required to make the most effective use of the people involved
with the project.
 It consists of organizational planning, staff acquisition, and team development.
6. Project communications management
 Describes the processes required to ensure timely and appropriate generation, collection,
dissemination, storage, and ultimate disposition of project information.
 It consists of communication planning, information distribution, performance reporting,
and administrative closure.
7. Project risk Management
 Describes the processes concerned with identifying, analyzing, and responding to project
risk.
 It consists of risk identification, risk response development, and risk response control.
8. Project procurement management
 Describes the processes required to acquire goods and services from outside the
performing organization.
 It consists of procurement planning, solicitation, source selection, contract
administration, and contract close-out.
Generally, the following are specific project management skill areas:
o Leadership o Problem solving
o Team building o Managing conflict
o Communications o Coaching
o Planning o Motivating
o Organizing o Delegating
o Directing o Controlling
o Negotiating o Supporting

1.5.2. Role and Responsibilities of project managers

Project Manager:
 He/she has primary responsibility for providing leadership in planning, organizing, and
controlling the work effort to accomplish the project objective.

Compiled by Gemechis J. Dandi Boru College Shambu Campus Page 4

 Project Management Lecture Note

 “The person who is responsible for the project and will be held accountable for its success
or failure.”
 Some of the project manager responsibilities are:
 Define and manage customer expectations: The project manager clearly defines the project
objectives and reaches agreement with the customer on this objective.
 Coordinate development of the project plan
 Monitor and control project work according to the approved plan.
 Communicate project status by preparing status reports and conducting progress review
meetings.
 Establish and follow a change management process.
 Lead the project team and resolve conflicts between team members
 Maintain the project notebook.
 Conducting project close-out activities
1.5.3. Project Management Process

Initiation Planning

Execution Controls

Closeout

1.5.4. Benefits of Project Management

o Enables completion of projects in the shortest time possible while balancing cost and
quality
o Enhances staffing flexibility and can help accomplish more work with fewer resources
o Provides timely information to multiple levels of the organization in consistent formats
o Enhances decision making based on facts and project information
o Enhances ability to achieve business objectives and goals
1.5.5. Project Stakeholders
o What is a project stakeholder?

Compiled by Gemechis J. Dandi Boru College Shambu Campus Page 5

 Project Management Lecture Note

 If you can gain or lose from the success or failure of a project, you have a “stake” in the
project.
 Key Project Stakeholders are:
o Customer/client
o Project sponsor
o Project manager
o Project team

================================//===================================

Compiled by Gemechis J. Dandi Boru College Shambu Campus Page 6