TYPES OF PROJECT

Meaning of Project

A project is an economic activity with a well-defined objective with certain durations and gains

to entrepreneurs

A project is a scientifically evolved work plan devised to achieve a specific objective within a

specified period of time. It is an individual or collaborative enterprise that is carefully planned

to achieve a particular aim.

Classification of Project

Following are the major types of project –

(1) Quantifiable and Non-quantifiable projects: Projects for which a plausible

quantitative assessment of benefits can be made art called “quantifiable projects”. Projects

concerned with industrial development, power generation fall in this category.

On the contrary, Projects for which a plausible quantitative assessment of benefits cannot be

made are called “Non-quantifiable projects”. Non-quantifiable projects are those where such

assessment is not; possible e.g., Health education, defence etc.

(2) Sectoral projects: Sectoral projects have their specific sectors, such as Agriculture and

similar sector Irrigation and power sector. Sectoral means relating to the various economic

sectors of a society or to a particular economic sector.

The social services sector,

sector.

(3) Techno-Economic projects: This type of classification includes factors intensityoriented

classification, causation• oriented classification, and magnitude-oriented

classification.
a) Factor intensity oriented classification

In this category, projects are either capital intensive or labour-intensive depending upon their

size & investment pattern. For eg: IT project or service rendering project is labour-intensive

depending on their size and investment pattern.

b) Cause-oriented

In this category, projects are based on either the availability of raw material or demand for that

project. For eg- Power project required, abundant water, steel plant required iron ore as raw

material.

c) Magnitude oriented classification

Here the size of an investment is considered depending on the investment. A project can be

classified as a tiny unit investment to 25 lakhs Small-scale unit investment up to 1 crore.

Medium scale enterprise investment up to 5 crores or more.

5 Essential Stages of Project Management

Regardless of the industry in which a business operates or its primary priorities, project
management processes include five stages: initiation, planning, execution, monitoring and
controlling, and closure. Each stage has its own set of objectives, deliverables, and outcomes that
are critical to the project's success.

1. Project Initiation

The project management process begins with the initiation stage. It’s the phase when an idea
becomes a meaningful business plan. This stage involves defining the project and its objectives.
Before kicking off the project, there are a few questions that need to be answered:

 What is the purpose of the project?

 What are the project’s objectives?

 What kind of resources will be required?

 Are there any potential constraints down the road?

 How much time would it take for the project to be finished?

 Does it have a budget range?

  Who are the stakeholders?

The purpose of this questionnaire is for managers to clearly outline the project's objectives and
reasons through a set of formal documents. Some important PM documents include:

 Business case: a business case explains how a business will benefit from this project. It
also justifies various aspects, such as potential obstacles and expenses.

 Feasibility study: a feasibility study assesses whether the project can be completed
within a specified timeframe, considering various factors contributing to its successful
completion.

 Project charter: a project charter focuses on all necessary information about the project
– what value it is going to deliver, what needs to be done, what is the expected timeline,
what is the budget for the project, who is the assigned project manager, etc.

Clarifying these questions and setting the ground basis for everyone involved is a crucial step for
the project’s success. Unclearly defined objectives and their rationale pose a threat, increasing
the risk of project failure and failing to meet stakeholders' expectations.

2. Project Planning

Once the project is defined, it enters the planning stage.

The primary goal of this stage involves creating a detailed project plan, which should include the
following information:

 setting project goals,

 identifying the deliverables and creating a breakdown structure,

 estimating the time and resources required to complete each task,

 creating a project schedule.

During project planning, you should also create a risk management plan to outline the strategy if
any risks occur associated with the project.

Whether you take a more traditional project planning approach or follow some of the Agile
methodologies’ guidelines and plan in an Agile way, setting achievable, specific, and measurable
goals can be advantageous. To help with that, you can explore some goal-setting methods such
as S.M.A.R.T. (Specific, Measurable, Achievable, Realistic, and Timely) or C.L.E.A.R.
(Collaborative, Limited, Emotional, Acceptable, and Refined).
3. Project Execution

After the planning stage comes the execution, which is the backbone of a project’s lifecycle. As
the name suggests, you are in the process of executing the work identified in the planning
phase.

During the project execution, project managers need to manage resources, address and resolve
any shortcomings, build efficient workflows, and carefully monitor progress. Moreover,
maintaining open communication among project stakeholders ensures that everyone stays
informed, promoting smooth project execution and staying on track.

Balancing multiple responsibilities simultaneously can become overwhelming and hinder

productivity. To keep up with everything going on, project leaders rely on project management
tools to help them track work and collaborate seamlessly with everyone.

4. Project Monitoring and Controlling

The distinction between the project monitoring phase and the project execution stage is subtle, as
they often overlap. In this phase, consistent reviews of the project status are crucial to identify
and address issues promptly and taking necessary actions when necessary.

Additionally, monitoring the project’s progress against key performance indicators (KPIs) or
OKRs (objectives and key results) informs if the project is going in the right direction and is on
track.

While in this stage, managers can still make all necessary adjustments to ensure the project is
completed successfully and track the project timeline, budget, and quality requirements.

5. Project Closure

At this stage, you want to ensure the stakeholder is satisfied with the project's outcomes. As a
final to-do, you can conduct a last project review to identify any lessons learned and document
the project results.

The project closure phase marks the formal conclusion of a project and involves several key
activities. Firstly, there is a comprehensive review of project deliverables against initial goals
and objectives to ensure all requirements are met. Additionally, the closure phase involves
releasing project resources, such as team members or equipment, and closing out financial
accounts associated with the project.

As a final to-do, project closure includes a final project review to identify any lessons learned
and create a final document summarizing key achievements and challenges and outlining the
overall project performance