PROJECT ANALYSIS AND

MANAGEMENT
Course Leader: Zegeye Habtemariam
(PhD)

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CHAPTER ONE
PART I
INTRODUCTION

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Recommended Resources
● Text Book
● Chandra, P. (2014). Projects: Planning, Analysis, selection, Financing,
Implementation & Review. 8th ed. India: McGraw Hill.
● References
● Kerzer, H. (2009). Project Management: A systems Approach to Planning,
Scheduling & Controlling. 10thed. New Delhi: Wiley.
● Chandra, P. (2009). Projects: Planning, Analysis, selection, Financing,
Implementation & Review. 7th ed. India: McGraw Hill.
● Moris, PWG. (1994). The Management of Projects. UK:
Redwood Books.
● Larson E. and Gray C. (2014). Project Management:
The Management Process. USA: McGraw-Hill New York.
● Lewis, J., (2011). Project Planning, Scheduling and control.
India: McGraw-Hill.
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UNIT ONE: INTRODUCTION
● Contents
1.1. Concept, Scope, Definition of project
1.2. Characteristics of Project
1.3. Classification of Project
1.4. Project Vs. Program
1.5. An Overview of Project Cycle

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Session One
Objective of this session
● At the end of this session students be able to:
o Define what is meant by a project
o Identify the key characteristic of a project
o Explain the difference between a project and operational activity
o Identify different classification and types of projects

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Concept, Scope and Definition of a Project
What is a project?
● A Project is a temporary effort involving a connected (related) sequence of
activities and a range of resources which is designed to achieve a specific
and unique outcome, which operates within time, scope, cost and quality
constraints and which is often used to introduce change (Lake, 1997).

● A project is defined as a unique set of coordinated activities, with

definite starting and finishing points, undertaken by an individual or
organization to meet specific objectives within defined schedule,
cost and performance

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Concept, Scope and Definition of a Project
● A project is a one-shot, time limited, goal directed, major undertaking ,
requiring the commitment of varied skills and resources.
● Project:
o Converting a vision, a dream or a need to reality
o has a beginning and an end ( time bounded)
o has a specified outcome ( scope) at a stated level of performance (
Quality)
o has specific budget ( Costs)

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Key Concepts in the Definitions
● Purpose: the basic reason for the existence of a project to solve a problem,
address a need or take the advantage of opportunity.
● Temporary: means that a project is something that has a specific start date
and a specific end date
● Sequences of Activities: the works and the steps we perform and the
methods and knowledge we use to achieve the project objective.
● Resources: A project utilizes a variety of resources (human, material,
information, etc.) to carry out the activities or risks
● Unique outcome: A project brings about a unique product
or service- something that has not existed in the
organization here-to-fore.

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Key Concepts in the Definitions
● Scope: the extent of the problem or opportunity that the project needs to
address
● Organization: is vital to coordinate resources to achieve the project
objectives-. Organization can be public, private or NGOs
● Time: any project should be time bounded. It has a start and end time
● Cost: activities consume human, financial and material resources
● Quality: the project needs to produce quality products to maximize the
satisfaction of the users
● Introduce Change: A project is often used as an instrument
for change. Change for the betterment of the society.

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Project Key Characteristics
Any project can be characterized by these characteristics:
● Temporary: has definite start and definite end
● Unique deliverable(s): product/services is different in some distinguishing
way.
● Progressive: With the progress of a project, continuous investigation and
improvement become available, and all this allows producing more
accurate and comprehensive plans. This key characteristic means that the
successive iterations of planning processes result in developing more
effective solutions to progress and develop projects.

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QUESTION TIME
Which of the following is the characteristic feature of
a project?
A. Project is a temporary effort which involves a sequence
of related activities
B. Project has specific objective and unique outcome
C. Project has a specific period with definite starting and
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What is not a Project?
● Organization perform either Operation or Project
● Operations : are ongoing work and repetitive. They involve work that is
continuous without an ending date and you often repeat the same
processes and produce the same results
● Projects : are “ Temporary” and “unique”
o “Temporary” : definite beginning and ending
o “Unique”: provide a product or service that are different in some
characteristics

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What is not a Project?
o Project is unique, one time operation designed to achieve an
objective in a limited time
o Project is a serious of related jobs focused on completion of an
objective
o A project has distinctive attributes, which distinguished it from
operating work or business operation. Projects are temporary in
nature. They are not everyday business process and have a definite
start dates and end dates.
o The purpose of operations is to keep the organization
functioning while the purpose of a project is to meet
its goals and to conclude. Therefore, operations are
ongoing while projects are unique and temporary.

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 Features of Project

Defined Approved
Unique in Nature
Timescale Budget

Limited Element of Beneficial

Resources Risk Change

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Examples of a Project
● Some examples of a project are:
o Developing a new product or service
o Constructing a building or facility
o Renovating the kitchen
o Designing a new transportation vehicle
o Acquiring a new or modified data system
o Organizing a meeting
o Implementing a new business process

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The Project Model
Constraints:
• Financial
• Legal
• Ethical
• Environmental
• Time
• Quality
• Indirect effect

Input: Output:
want/need Project
Satisfied need

Mechanism:
• People
• Knowledge & expertise
• Capital
• Tools & techniques
• Technology
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QUESTION TIME
Which of the following is true?

A. Operational activities are ongoing work and repetitive

B. projects is unique, one time operation while operation
activity is continuous without ending date
C. Project is a series of related jobs focused on achieving
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D. All of the above
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Classification and Type of Project
● Projects can be categorized according to type of activity, location, time,
ownership, size and need
1. According to type of Activity:
o Under this category, projects can be classified as industrial and non-
industrial projects.
• Industrial projects: are set up for the production of some goods.
• Non-Industrial projects: comprise health care projects,
educational projects, irrigation projects, soil
conservation projects, highway projects etc.

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Classification and Type of Project
2. According to location:
o Location wise, projects can be categorized as national and
international projects.
• National projects are those set up in the national boundaries of a
country, while
• International projects are set up by the government or private
sector across the globe.

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Classification and Type of Project
3. According to Completion Time:
o Projects under this category can be divided into two types as Normal
and Crash projects.
o Normal projects there is no time constraint.
o Crash projects are those which are to be completed within a
stipulated time, even at the cost of ending up with a higher project
cost.

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Classification and Type of Project
4. According to Ownership
o Projects under this category can be grouped into public, private and
joint sector projects.
• Public sector projects are owned by the government.
• private sector projects ownership is in the hands of the project
promoters and investors.
• Joint sector projects are those in which ownership is shared by
the Government and private entrepreneurs.

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Classification and Type of Project
5. According to Size:
o Based on size, there may be three categories of projects- small,
medium and large.
o This depends on investment on plant and machinery requirements
and the category as small, medium and large varied from country to
country

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Classification and Type of Project
6. According to Need:
o Based on the need for the project, projects can be classified as
o Expansion,
o Modernization,
o Replacement,
o Diversification,
o Backward integration and
o Forward integration projects.

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 Types of Project
● There are also different types of projects that can be classified as

❑ Personal Projects: ❑ Business Projects:

• Obtain an MBA • Develop a new course
• Write a report • Develop a new product
• Plan a wedding • Develop a computer system
• Plana garden • Introduce a new product
• Build a house • Prepare an annual report
extension • Set up a new office

❑ Industrial Projects: ❑ Public Investment Projects

• Construct a building • Education
• Provide a gas supply • Health
to an industrial estate • West disposal
• Build a motorway • Roads
• Design a new car • Electricity
• Telecommunication,etc.
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 DISCUSSION POINT
- Discuss the difference between a project and operational
activities
- Explain what is not a project?
- Identify the different classification and types of projects?

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THANK YOU!

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