PROJECT MANAGEMENT

BBA 6th SEMESTER

UNIT 1
Q.NO.1 WHAT DO YOU MEAN BY PROJECT AND PROJECT
MANAGEMENT. EXPAIN OBJECTIVES AND IMPORTANCE OF
PROJECT MANAGEMENT IN DETAIL
A 'project' is a set of agreed activities with a definite start, middle and
end. Together these activities produce business products or services in
line with an approved business case which is sponsored by senior
managers within the organisation.
'Project management' provides structure and control of the project
environment so that the agreed activities will produce the right
products or services to meet the customer’s expectations.
Projects are temporary structures which must be properly managed
and controlled in order to meet their stated objectives. They are
usually delivered in an environment where both funding and resources
are constrained and subject to competition.
Project management is the discipline of managing all the different
resources and aspects of the project in such a way that the resources
will deliver all the output that is required to complete the project.
A good project manager utilises a formal process that can be audited
and used as a blue print for the project, and this is achieved by
employing a project management methodology.

Project management is the process of leading the work of a team to

achieve all project goals within the given constraints.
[1] This information is usually described in project documentation,
created at the beginning of the development process. The primary
constraints are scope, time, and budget.
[2] The secondary challenge is to optimize the allocation of necessary
inputs and apply them to meet pre-defined objectives.

OBJECTIVES OF PROJECT MANAGEMENT

Project objectives can be defined as a particular event that managers or
organizations zero in on, to accomplish it within a set time frame.
You cannot take the importance of project objectives for granted because it
can lead to problems like time wastage, unnecessary consumption of
resources, etc.

There are 6 types of project management objectives, and each of them

should be taken care of properly for guaranteed project success.

1. Financial Objectives:
Financial objectives are related to the company’s bottom line and are
gauged for the sake of economic benefits. Financial objectives play a key
role during the project management journey, as they help you stay away
from budget overrun and uplift profit levels.
In addition, both financial objectives and client relationships go hand in
hand.

2. Quality Objectives:
You can keep clients’ trust and loyalty as long as you deliver quality
deliverables. It is imperative to note that the negative aftereffects of
compromised quality can make a big dent in the brand image. Therefore,
having quality objectives is instrumental.
Through such objectives, you can meet certain internal and external quality
standards. Plus, the odds of leaving loopholes in a project will go down and
the chances of achieving client satisfaction will snowball.

3. Technical Objectives:
The technical objectives are all about technology-related activities and
efforts, which must be done for successful project closure. During the project
life cycle, different equipment and technology get used to attain the desired
deliverables.
Thus, having the required hardware and software at disposal is fundamental
because your project can go off the track otherwise.

4. Performance Objectives:
Performance objectives are pretty much self-explanatory. It means you have
to set some objectives revolving around the performance aspect because
clients shower their wrath on you if the delivered project doesn’t function in
an expected manner.
So, always look for improvement areas so that performance objectives are
met without any trouble.

5. Compliance Objectives:
Every project complies with something, no matter whether it concerns a
particular rule, procedure, or policy.
Therefore, having compliance objectives in project management is
fundamental. However, meeting them could be some sort of challenge,
Never take compliance objectives lightly, because it can put your business in
legal trouble if you dare to do so.

6. Business Objectives:
Last but not least, business objectives are directly related to success and
profit. Business objectives comprise strategies to save time, avoid rework,
etc. And they should be defined clearly so that the end result matches your
expectations.

Here are some other objectives of project management:-

 Meeting all project goals successfully: To ensure the success of project
goals, management and organisation of resources, time, talent and
workflows is necessary. Planning and optimisation constitute an
essential part of project management.
 Providing guidance and supervision to team members: Teams working
on a project may require supervision to accomplish tasks, change
strategy or maintain quality. Project management ensures a structure
of hierarchy and accountability that facilitates guidance and support to
all team members.
 Facilitating communication and collaboration: Seamless
communication and collaboration are integral to the success of any
project or team. Project management enables regular meetings,
discussions, feedback sessions, client approvals and exchange of ideas
to ensure that everyone is working towards the same goals with no
wastage of time or effort.
 Following all safety processes and protocols: Certain projects, like that
in food production plants or at construction sites, may require stringent
adherence to strict safety protocols and processes. Project
management accounts for such reviews and safety checks to ensure
the quality and safety of the team members and the end product.
 Optimising budget and resources: Project management is an attempt
to use the allocated budget and resources in the most efficient
manner. This allows organisations to save costs, maximise the return
and ensure that there are no leakages in the system.
 Reviewing and course-correcting timely: All projects and plans require
updates and changes during the implementation phase. Project
management help ensure that there are assessments, quality checks
and reviews throughout the project implementation so that changes
can take place quickly, effectively and without disruption.

IMPORTANCE OF PROJECT MANAGEMENT

1. StrategicAlignment
Project management is important because it ensures what is being delivered, is right, and will deliver real
value against the business opportunity.
Every client has strategic goals and the projects that we do for them advance those goals. Project
management is important because it ensures there’s rigor in architecting projects properly so that they fit
well within the broader context of our client’s strategic frameworks Good project management ensures
that the goals of projects closely align with the strategic goals of the business.
In identifying a solid business case, and being methodical about calculating ROI, project management is
important because it can help to ensure the right thing is delivered, that’s going to deliver real value.
Of course, as projects progress, it is possible that risks may emerge, that turn into issues or even the
business strategy may change. But a project manager will ensure that the project is part of that
realignment. Project management really matters here because projects that veer off course, or which fail
to adapt to the business needs may end up being expensive and/or unnecessary.

2. Leadership
Project management is important because it brings leadership and direction to Projects. Without project
management, a team can be like a ship without a rudder; moving but without direction, control or
purpose. Leadership allows and enables a team to do their best work. Project management provides
leadership and vision, motivation, removing roadblocks, coaching and inspiring the team to do their best
work.Project managers serve the team but also ensure clear lines of accountability. With a Project
manager in place there’s no confusion about who’s in charge and in control of Whatever’s going on in a
project. Project managers enforce process and keep everyone On the team in line too because ultimately
they carry responsibility for whether the Project fails or succeeds.

3. ClearFocus&Objectives
Project management is important because it ensures there’s a proper plan for Executing on strategic goals.
Where project management is left to the team to work out by themselves, you’ll find teams work without
proper briefs, projects lack focus, can have vague or nebulous objectives, and leave the team not quite
sure what they’re supposed to be doing, or why. As project managers, we position ourselves to prevent
such a situation and drive the timely accomplishment of tasks, by breaking up a project into tasks for our
teams. Oftentimes, the foresight to take such an approach is what differentiates good project management
from bad. Breaking up into smallerchunks of work enables teams to remain focused on clear objectives,
geartheir efforts towards achieving the ultimate goal through the completion of smaller steps and to
quickly identify risks, since risk management is important in project management. Often a project’s goals
have to change in line with a materializing risk. Again, without dedicated oversite and management, a
project could swiftly falter but good project management (and a good project manager) is what enables
the team to focus, andWhen necessary refocus, on their objectives.

4. RealisticProjectPlanning
Project management is important because it ensures proper expectations are set Around what can be
delivered, by when, and for how much. Without proper project management, budget estimates and project
delivery timelines can be set that are over-ambitious or lacking in analogous estimating insight from
similar projects. Ultimately this means without good project management, projects get delivered late, and
over budget. Effective project managers should be able to negotiate reasonable and achievable deadlines
and milestones across stakeholders, teams, and management. Too often, the urgency placed on delivery
compromises the necessary steps, and ultimately, the quality of the project’s outcome.
We all know that most tasks will take longer than initially anticipated; a good project manager is able to
analyze and balance the available resources, with the required timeline, and develop a realistic schedule.
Project management really matters when scheduling because it brings objectivity to the planning. A good
project manager creates a clear process, with achievable deadlines, that Enables everyone within the
project team to work within reasonable bounds, and not Unreasonable expectations.

5. QualityControl
Projects management is important because it ensures the quality of whatever is being delivered,
consistently hits the mark.
Projects are also usually under enormous pressure to be completed. Without a dedicated project manager,
who has the support and buy-in of executive management, tasks are underestimated, schedules tightened
and processes rushed. The result is bad quality output. Dedicated project management ensures that not
only does a project have the time and resources to deliver, but also that the output is quality tested at
every stage. Good project management demands gated phases where teams can assess the output for
quality, applicability, and ROI. Project management is of key importance to Quality Assurance because it
allows for a staggered and phased process, creating time for teams to examine and test their outputs at
every step along the way.

6. RiskManagement
Project management is important because it ensures risks are properly managed and mitigated against to
avoid becoming issues.
Risk management is critical to project success. The temptation is just to sweep them under the carpet,
never talk about them to the client and hope for the best. But having a robust process around the
identification, management and mitigation of risk is what helps prevent risks from becoming issues.Good
project management practice requires project managers to carefully analyze all potential risks to the
project, quantify them, develop a mitigation plan against them, and a contingency plan should any of
them materialize. Naturally, risks should be prioritized according to the likelihood of them occurring, and
appropriate responses are allocated per risk. Good project management matters in this regard, because
projects never go to plan, and how we deal with change and adapt our plans is a key to delivering projects
successfully.

7. OrderlyProcess
Project management is important because it ensures the right people do the right things, at the right time –
it ensures proper project process is followed throughout the project lifecycle. Surprisingly, many large and
well-known companies have reactive planning processes. But reactivity – as opposed to proactivity – can
often cause projects to go into survival mode. This is a when teams fracture, tasks duplicate, and planning
becomes reactive creating inefficiency and frustration in the team.Proper planning and process can make
a massive difference as the team knows who’s doing what, when, and how. Proper process helps to clarify
roles, streamline processes and inputs, anticipate risks, and creates the checks and balances to ensure the
project is continually aligned with the overall strategy. Project management matters here because without
an orderly, easily understood process, companies risk project failure, attrition of employee trust and
resource wastage.

8. ContinuousOversight
Project management is important because it ensures a project’s progress is tracked and reported properly.
Status reporting might sound boring and unnecessary – and if everything’s going to plan, it can just feel
like documentation for documentation’s sake. But continuous project oversight, ensuring that a project is
tracking properly against the original plan, is critical to ensuring that a project stays on track. When
proper oversight and project reporting is in place it makes it easy to see when a project is beginning to
deviate from its intended course. The earlier you’re able to spot project deviation, the easier it is to course
correct. Good project managers will regularly generate easily digestible progress or status reports that
enable stakeholders to track the project. Typically these status reports will provide insights into the work
that was completed and planned, the hours utilized and how they track against those planned, how the
project is tracking against milestones, risks, assumptions, issues and dependencies and any outputs of the
project as it proceeds.
This data is invaluable not only for tracking progress but helps clients gain the trust of other stakeholders
in their organization, giving them easy oversight of a project’s progress.

9. SubjectMatterExpertise
Project management is important because someone needs to be able to understand if everyone’s doing
what they should.With a few years experience under their belt, project managers will know a little about a
lot of aspects of delivering the projects they manage. They’ll know everything about the work that their
teams execute; the platforms and systems they use, and the possibilities and limitations, and the kinds of
issues that typically occur.Having this kind of subject matter expertise means they can have intelligent
and informed conversations with clients, team, stakeholders, and suppliers. They’re well equipped to be
the hub of communication on a project, ensuring that as the project flows between different teams and
phases of work, nothing gets forgotten about or overlooked.
Without subject matter expertise through project management, you can find a project becomes unbalanced
– the creatives ignore the limitations of technology or the developers forget the creative vision of the
project. Project management keeps the team focussed on the overarching vision and brings everyone
together forcing the right compromises to make the project a success.

10. ManagingandLearningfromSuccessandFailure
Project management is important because it learns from the successes and failures of the past.
Project management can break bad habits and when you’re delivering projects, it’s important to not make
the same mistakes twice. Project managers use retrospectives or post project reviews to consider what
went well, what didn’t go so well and what should be done differently for the next project.
This produces a valuable set of documentation that becomes a record of “dos and don’ts” going forward,
enabling the organization to learn from failures and success. Without this learning, teams will often keep
making the same mistakes, time and time again. These retrospectives are great documents to use at a
project kickoff meeting to remind the team about failures such as underestimating projects, and successes
such as the benefits of a solid process or the importance of keeping time sheet reporting up to date.

Q.NO.2 WHAT ARE THE TOOLS AND TECHNIQUES FOR PROJECT

MANAGEMENT. EXPLAIN IN DETAIL

Project management is the application of processes, methods, skills, knowledge and

experience to achieve specific project objectives according to the project acceptance
criteria within agreed parameters. Project management has final deliverables that are
constrained to a finite timescale and budget.

A key factor that distinguishes project management from just 'management' is that it has
this final deliverable and a finite timespan, unlike management which is an ongoing
process. Because of this a project professional needs a wide range of skills; often
technical skills, and certainly people management skills and good business awareness.

~ Techniques in project management range from traditional to innovative ones. Which

one to choose for running a project, depends on project specifics, its complexity, teams
involved, and other factors. Most of them can be used in various fields, however, there
are techniques that are traditionally used in certain areas of activity, or are developed
specifically for certain fields. Below, we've listed the most popular techniques that
management. are used in project

PROJECT MANAGEMNT TECHNIQUES

• Classic Technique

The simplest, traditional technique is sometimes the most appropriate for running
projects. It includes preparing a plan of upcoming work, estimating tasks to perform,
allocating resources, providing and getting feedback from the team, and monitoring
quality and deadlines.
Where to use: this technique is ideal for running projects performed by small teams,
when it's not really necessary to implement a complexprocess.

• Waterfall Technique

This technique is also considered traditional, but it takes the simple classic approach to
the new level. As its name suggests, the technique is based on the sequential
performance of tasks. The next step starts when the previous one is accomplished. To
monitor progress and performed steps, Gantt charts are often used, as they provide a
clear visual representation of phases and dependencies.

Where to use: this technique is traditionally used for complex projects where detailed
phasing is required and successful delivery depends on rigid work structuring.

• Agile Project Management

Agile project management method is a set of principles based the value-centered on

approach. It prescribes dividing project work into short sprints, using adaptive planning
and continual improvement, and fostering teams' self-organization and collaboration
targeted to producing maximum value. Agile frameworks include such techniques as
Scrum, Kanban, DSDM, FDD, etc.

Where to use: Agile is used in software development projects that involve frequent
iterations and are performed by small and highly collaborative teams.

• Rational Unified Process

Rational Unified Process (RUP) is a framework designed for software development

teams and projects. It prescribes implementing an iterative development process, where
feedback from product users is taken into account for planning future development
phases.

Where to use: RUP technique is applied in software development projects, where end
user satisfaction is the key requirement.

• Program Evaluation and Review Technique

Program Evaluation and Review Technique (PERT) is one of widely used approaches in
various areas. It involves complex and detailed planning, and visual tracking of work
results on PERT charts. Its core part is the analysis of tasks performed within the
project. Originally, this technique was developed by the US Navy during the Cold War to
increase efficiency of work on new technologies.

Where to use: this technique suits best for large and long-term projects with non-routine
tasks and challenging requirements.
• Critical Path Technique

Actually, this technique is an algorithm for scheduling and planning project works that is
often used in conjunction with the PERT method discussed above. This technique
involves detecting the longest path (sequence of tasks) from the beginning to the end of
a project, and defining the critical tasks. Critical are tasks that influence the deadlines of
the entire project, and require closer attention and thorough control.

Where to use: Critical Path technique is used for complex projects where delivery terms
and deadlines are critical, in such areas as construction. defense. software
development, and others.

• Critical Chain Technique

Critical Chain is a more innovative technique that derives from PERT and Critical Path
methods. It is less focused on rigid task order and scheduling, and prescribes more
flexibility in resource allocation and more attention to how time is used. This technique
emphasizes prioritization, dependencies analysis, and optimization of time expenses.

Where to use: like the previous two techniques, it is used in complex projects. As it is
focused on
time optimization and wise resource allocation,
it suits best for projects where resources are
limited.

• Extreme Project Management

Extreme project management technique (XPM) emphasizes elasticity in planning, open

approach, and reduction of formalism and deterministic management. Deriving from
extreme programming methods, it is focused on human factor in project management
rather than on formal methods and rigid phases.

Where to use: XPM is used for large, complex and uncertain projects where managing
uncertain and unpredictable factors is required.

Project Management Tools

When applying any of the techniques to the project you need to accomplish, you also
need to use specific tools for successfully implementing the technique. Here's a list of
software tools that are used in project management on different work steps.

• Organizing Planning Workflow & planning

This step is the core part of starting a project: it defines how the project will be
performed, and how the quality of its outcome will be ensured. Large companies often
use such comprehensive solutions as MS Project. For smaller teams, various
alternatives are available. They don't provide all the rich functionality typical to complex
and expensive tools, but they have planning and roadmap features that are sufficient for
visualizing future project progress.

• Communication

Being the key point in many techniques and methodologies, communication within a
project team needs to be properly organized. While using email for formal
communication and important messages, it's also essential to have a corporate
messenger - Slack and Skype are the most popular ones. And, if your team members
use different tools to communicate, eliminate the pain of having multiple messengers by
integrating them.

• Scheduling

When allocating resources and planning for future, it's crucial to know who on the team
is available for specific dates. Use scheduling software for that! Such tools as
actiPLANS provide a clear visual chart of absences for upcoming dates, and allow to
see all necessary details to team members' leaves and time off.

• Time management

Knowing where your team's time goes not just helps managing current project risks. It
also provides valuable information for future planning and actimating Time management
such as actiTIME, help managers understand both individual time expenses and team's
results for any period. Informative reports with time & cost summaries and notes to the
logged time provide insights into how time is used and what can be optimized.

• Finance & Accounting

For any project manager and business owner, understanding financial outcome of the
projects is crucial for analysis and future planning. Most used accounting tools
QuickBooks, Zoho, - Freshbooks help collect this information. For - smaller project
teams, other accounting solutions can be reasonable. They require less investment, but
also provide insights on project profitability, teams' performance, and estimation
accuracy.

Q.NO.3 WHAT IS PROJECT TEAM? DEFINE THE ROLE AND

RESPONSIBILITIES OF A PROJECT MANAGER. EXPLAIN
DETERMINANTS OF PROJECT SUCCESS.
A project team is a group of individuals who come together to work on a specific project or objective.
Project teams are typically composed of individuals from different departments or areas of expertise
within an organization, or even from outside the organization, who have the necessary skills and
knowledge to accomplish the project's goals.

The team is usually led by a project manager who is responsible for overseeing the project and ensuring
that it is completed on time, within budget, and to the required level of quality. The project manager is
also responsible for communicating with stakeholders, managing risks, and resolving any issues that
arise during the project.

Effective project teams are typically composed of individuals with diverse backgrounds and skillsets, as
this can bring a variety of perspectives and approaches to problem-solving. Effective communication,
collaboration, and trust are also critical components of successful project teams.

ROLES AND RESPONSIBLITIES OF A PROJECT MANAGER

A project manager is responsible for planning, executing, and closing a project, while also ensuring that it
is delivered on time, within budget, and to the satisfaction of the stakeholders. The specific roles and
responsibilities of a project manager can vary depending on the organization, project, and industry.
However, some common duties of a project manager include:

Defining project goals and objectives: The project manager must work with stakeholders
to identify the desired outcomes and objectives of the project.

Planning and scheduling: The project manager must create a comprehensive plan that
outlines all tasks, timelines, resources, and risks involved in the project.

Resource management: The project manager must allocate resources efficiently and
effectively to ensure that the project is completed within the budget.

Team management: The project manager must lead and motivate the project team to
achieve the project's objectives.

Risk management: The project manager must identify, assess, and manage risks to
minimize the impact of potential problems on the project.

Monitoring and reporting: The project manager must continuously monitor progress,
identify any issues that arise, and report on the project's status to stakeholders.

Quality assurance: The project manager must ensure that the project meets the
required quality standards.

Communication management: The project manager must communicate effectively with

all stakeholders, including team members, clients, and management.

Change management: The project manager must manage changes to the project scope,
timeline, and budget.

Overall, the project manager is responsible for ensuring that the project is completed
successfully, on time, within budget, and to the satisfaction of all stakeholders.
DETERMINANTS OF PROJECT SUCCESS
Project success is determined by the highest level achieved at any point in time. For example, if a project
is determined to have succeeded at Level 4 (business success), the project's success status is that it
is/was successful at Level 4, regardless of its performance at lower levels.

Project managers often wonder if they are measuring the right things on a project. It’s difficult to
know how much time to spend evaluating past performance and how much time to spend on
keeping the work moving forward.
At various points during the project, you want to evaluate five points: schedule, quality, cost,
stakeholder satisfaction and performance against the business case. You should be doing this
informally anyway. A formal project evaluation is of use during the end of a phase or stage as it
can give you a clear indication of how the project is performing against the original estimates.
Let’s look at the five items you should be evaluating.

1. Schedule Baseline:
Project management success is often determined by whether or not you kept to the
original project schedule. Experienced project managers know how hard that is, but it’s a little bit
easier if you continually evaluate your progress as you go. You’ll update your project
schedule regularly – I recommend at least weekly. The schedule evaluation is something you
can do more formally at the end of the stage or phase, or as part of a monthly report to your
senior stakeholder group or Project Board. It’s easy to update your project schedule if you build
it on an online Gantt chart, where tasks and deadlines are made into visual timelines.

2. Quality Assurance
The end of a project phase is a good time for a quality review. You can check both the quality of
your project management practices – are you following the change management process every
time and so on – and also the deliverables.
A quality review can evaluate whether what you are doing meets the standards set out in your
quality plans. Best find out now before the project goes too far, as it might be too late to do
anything about it then.

3. Project Budget
Many executives would rate cost management as one of their highest priorities on a project, so
evaluating how the project is performing financially is crucial. Compare your current actual
spend to your project budget at this point. If there are variances, look to explain them. You can
use a project dashboard to check your actual spend in real time.

4. Stakeholder Satisfaction
Your wider team – your stakeholders – are essential in getting much of the work done, so it’s
worth checking in with them. Find out how they are feeling about the project right now and what
you could be doing differently.
This is a difficult measure to document statistically, although there’s nothing to stop you from
asking them for a rating out of 10. Even if you are evaluating their satisfaction subjectively, it is
still a useful exercise. If you notice that stakeholders are not fully supportive, you can put plans
in place to engage them thoroughly to try to influence their behavior.

5. Performance to Business Case

Finally, you’ll want to go back to the business case and see what you originally agreed upon.
How is your project shaping up? Check that the benefits are still realistic and that the business
problem this project was designed to solve does still exist. It happens – project teams work on
initiatives that sound great but by the time they are finished the business environment has
moved on and the project is redundant. No one bothered to check the business case during the
project’s life cycle and so no one realized that the work was no longer needed.

Q.NO.4 WHAT ARE THE VARIOUS PHASES OF PROJECT MANAGEMENT LIFE CYCLE?
EXPLAIN ALL THE PHASES. HOW THE PROJECTS ARE CLASSIFIED?

ANS. PROJECT LIFE CYCLE

The project management lifecycle is a step-by-step framework of best practices used to shepherd a
project from its beginning to its end. It provides project managers a structured way to create, execute,
and finish a project. The project management lifecycle provides projects with structure and tools to
ensure they have the best chance of being successful. The project life cycle is made up of five project
stages: project initiation, project planning, project execution, monitoring & control and project closing.
The 5 Project Life Cycle Phases

1. Project Initiation Phase This is the start of the project for the project manager, who is responsible for
defining the project at a high level. In the initiation phase, the project manager defines the project. It
sorts the project goals, scope, and resources of the project, and what roles are needed on the team.

2. Project Planning Phase This is where the project plan is created, and all involved in the project will
follow it. This phase begins by setting SMART (specific, measurable, attainable, realistic, timely) goals.
The scope of the project is defined and a project management plan is created, identifying cost, quality,
resources and a timetable. Some of the features of this phase include a scope statement, setting of
milestones, communication, risk management plans and a work breakdown structure.

3. Project Executing Phase Now begins the part of the project that most people think of as the project:
executing the tasks, deliverables and milestones defined in the project scope. Some tasks that make up
this phase include developing the team and assigning resources using key performance indicators,
executing the project plan, procurement management and tracking and monitoring progress. If needed,
you can set status meetings and revise the schedule and plan.

4. Project Monitoring and Controlling Phase The monitoring and controlling phase consists of setting up
project controls and key performance metrics to measure the effectiveness of the project execution. The
monitoring and controlling project phase is very important to make sure the execution goes as planned
in terms of schedule, scope and budget baselines.
 5. Project Closing Phase It’s not over until the project closure phase it’s over. Completing the
deliverables to the satisfaction of your stakeholders is key, of course, but the project manager must
nowdisassemble the apparatus created to fulfill the project. That means closing out work with
contractors, making sure everyone has been paid and ensuring that all project documents are signed off
on and archived to help with planning future projects. Once this has been done, the project manager
often has a post-mortem with the project team to highlight what worked and whatdidn’t work, so that
successes can be repeated and mistakes avoided.

CLASSIFICATION OF PROJECTS
Projects can be classified in various ways, depending on the industry, purpose, and other factors. Some
common ways to classify projects are:

Based on industry: Projects can be classified based on the industry they belong to, such as construction,
IT, healthcare, manufacturing, or education.

Based on the level of complexity: Projects can be classified based on their level of complexity, such as
simple, medium, or complex. This classification helps in determining the appropriate project
management approach and methodology.

Based on purpose: Projects can be classified based on their purpose, such as research and development
projects, infrastructure projects, software development projects, marketing projects, and so on.

Based on duration: Projects can be classified based on their duration, such as short-term projects,
medium-term projects, and long-term projects. This classification helps in determining the appropriate
resource allocation and budgeting.
Based on funding: Projects can be classified based on their funding, such as private sector-funded
projects, public sector-funded projects, or a combination of both.

Based on priority: Projects can be classified based on their priority, such as high-priority projects,
medium-priority projects, and low-priority projects. This classification helps in determining the order in
which projects should be executed and the resources allocated to them.

Based on risk: Projects can be classified based on their level of risk, such as low-risk projects, medium-
risk projects, and high-risk projects. This classification helps in determining the appropriate risk
management strategies and contingency plans.

Overall, the classification of projects helps in understanding their nature, requirements, and challenges,
and in determining the appropriate project management approach and methodology.

Q.NO.5 DESCRIBE PROJECT IDEA IN DETAIL. ALSO ENUMERATE

VARIOUS FACETS WHILE SCREENING A PROJECT.
Definition

Project Ideas are where you begin documenting proposals for future research

grant applications. At this phase, you are documenting key information related

to the project, as well as identifying collaborators, potential funders, budget

information, and metadata related to the project.

How to choose a project idea?

The key to selecting a project is to know what you are capable of doing and whether

you will be able to deliver it in time or not. Punctuality is highly rewarded and can

lead to better future prospects too.

1. Familiarity with the project: Often what happens is that one selects a

project without getting to know the nitty-gritty of the whole situation. Select

a project that is in your niche and can be done without burning a lot of

midnight oil.

2. Effort vs. Result: Some projects will lead to sleepless nights and long

shifts, and at the end of the day, the result will nowhere be satisfactory.

3. Hierarchy: One of the most crucial factors is to assign or choose who will

lead the team on the said project. A clear-cut hierarchy helps avoid arguments

on strategy and planning ahead in the timeline. Make sure you spend enough
time thinking about this.

The leader or champion will be responsible for the day-to-day functioning and

daily or weekly reports. Stressful times cannot be avoided and must be handled

with a cool head. Make sure the leader has all these qualities.

4. Assessment: Make sure your company or firm can handle the project before

you even considering selecting it. Losing face by declining later might seem

unprofessional to the client. You should have the necessary sources and

personnel to deliver the project and that too on time.

5. Define your success: You should know what you want to achieve in a

stipulated time and whether it will be achievable too. A project is never

complete, though. You must define what is complete for you and by what

metrics would it be successful too.

6. Headcount of the resources: Your resources like budget, time, and how

free your best employees are should be taken into consideration. Overworking

your team will lead to burnout, which will delay the project. Make sure you are

not starting a project just after they have completed a taxing project.

Generation of Ideas: Identifying suitable project ideas is the most important

step in the whole process of project preparation. The search for promising

project ideas is the first step toward establishing a successful venture. The key

to success lies in getting into the right business at the right time. The objective

is to identify investment opportunities that are feasible and promising.

Generation of an idea of producing a new product, or new business, requires

imagination sensitivity to environmental changes, and the realistic assessment

of what the firm can do. A project is not a product or commodity to be

purchased. It has a promise as well as a risk.

An idea regarding a required intervention in a specific area to address the

identified problem is formed and developed. This idea is usually hatched

through discussions by specialists and local leaders in a community need based

on issues and turned into a proposal.

Generally, project ideas are generated depending on:

* Consumer needs

* Market demand

* Resource availability

* Technology

* Natural calamity

* SWOT analysis

* Political considerations etc.,

The project idea selection is the selection of project ideas from available

alternatives is to be best suited to the entrepreneurs’ capacity, competence, and

willingness. The project Selection includes.

* Profitability

* Feasibility

* Resource-ability

* Acceptability

The basic criterion for the selection of a project could be the existence of a

favourable cost-benefit relationship.

People would like to select a project which requires a minimum investment, a

low degree of competence, is completed in the shortest time, and has the highest

return potential.

A project idea should be SMART:

S – Specific objective

M – Measurable

A – Achievable

R – Realistic

T – Time bounded

Project identification: A search for promising project ideas could contribute

towards achieving specified development objectives. Project identification

should be an integral part of the Macro-planning exercise of the state with

sectored information and strategies as the main source of the ideas.

Good project ideas are the key to success. Therefore, a wide variety of sources

should be tapped to analyse them. To have a wide range of options, the sources

of project ideas can be categorized into two they are:

* Micro-level sources

* Macro-level sources

A] Micro level.

At micro level, project ideas can be generated from various sources. Some of

these are discussed below.

1. Analysis of the performance of existing industries; A study of existing

industries in terms of their profitability utilization can indicate promoting

investment opportunities that are profitable and relatively risk-free. An

examination of the capacity utilization of various industries provides

information about the potential for further investments. Such a study is more

useful if it is done region-wise. Particularly for products that have a high

demand for consumption and wide scope for production.

2. Examination of the input-outputs of various industries: The analysis of

inputs required for various industries may throw some project ideas.

Opportunities exist when {1] Materials, purchased parts, or supplies are

presently procured from distance sources with a considerable time lag and

transportation cost and [2] Several firms produce internally some components

parts which can be supplied at lower cost by a single producer who can enjoy

economics of scale. Similarly, a study of the output of the existing industries

may reveal opportunities for adding value through further processing of the

main outputs, by produce, by-products as well as waste products.

3. Review of imports and exports: Analysis of import statistics for a period of

five to seven years is helpful in understanding the trend of imports of various

goods and the potential for import substitution. Indigenous manufacture of

goods currently imported is advantageous for several reasons. [1] It improves

the balance of payments situation. [2]It generates employment, and [3] it

provides a market for the supporting industries and services. Likewise, an

examination of export statistics is useful in learning about the export

possibilities of various products.

4. Investigation of local materials and resources; A search for project ideas

may begin an investigation into local resources and skills. Various ways of

adding value to locally available materials may be examined. Similarly, the

skills of local artisans may suggest products that might be profitably produced

and marketed. Such assessment may consider issues such as the human and

material resources, Infrastructure facilities, and market for various products.

5. Analysis of economic and social changes: A study of economic and social

trends is helpful in projecting demands for various goods and services.

Changing economic conditions and consumer preferences provide new business

opportunities. For example, a greater awareness of the value of time is dawning

on public. Hence the demand for time saving products like prepared food items,

ovens and powered vehicles has been increasing. The other change that can be

seen during analysis is the increasing desire for the leisure and recreational

activities. This has caused a growth in the market for recreational products and

services.

6. Study of new technological developments: New products are the new

process and technologies for existing products developed by the research

laboratories may be examined for profitable communication.

7. Exploring the possibility of reviving sick units: Industrial sickness is

spread in many countries. There are innumerable bossiness units that have been

characterized as sick. These units either closed are have reached the prospect of

closure. A significant proportion of sick units however can be nursed back to

health by sound management, fusion of further capital, and provision of

complementary inputs. Hence there is a good scope for investment in this area.

8. Identification of unfulfilled psychological needs: For well-established

multi-brand product groups like bathing soaps, detergents, cosmetics, and

toothpaste, the question to be asked is not whether there is an opportunity to

manufacture them for satisfying an actual physical need, but whether there are

certain psychological needs of the consumers which are presently unfulfilled

9. Attending trade fairs: National and international trade fairs provide an

excellent opportunity to know about new product and developments.

10. Stimulating creativity for the generation’s new product lines: New

product ideas may be generated by thinking along the following lines:

Modifications, rearrangements, reversal, magnifications, reductions,

substitutions, adoptions and combinations.

Monitoring environment and screening of project ideas

Generation of Ideas: Identifying suitable project ideas is the most important step

in the whole process of project preparation. The search for promising project

ideas is the first step towards establishing a successful venture. The key to success

lies in getting into the right business in the right time. The objective is to identify

investment opportunities which are feasible and promising.

Generation of an idea of producing a new product, new business, requires

imagination sensitivity to environmental changes and the realistic assessment of

what the firm can do? A project is not a product or commodity to be purchased. It

has a promise as well as a risk.

An idea regarding a required intervention in a specific area to address identified

problem is formed and developed. This idea is usually hatched through

discussions by specialists and local leaders in a community need based on issues

Environmental analysis
An environmental analysis is a strategic technique used to identify all internal and

external factors that could affect a company’s success. Internal components

reveal the strengths and shortcomings of a company, while external components

represent the opportunities and risks. This exists outside of the company.

Importance of environmental analysis

Organizations need to do environmental analysis because it helps them:

Find opportunities: By looking at the outside world, organizations can find new

trends and chances to enter new markets or make new products or services.

Identify threats: It helps businesses find threats to their business, such as new

competitors, changes in regulations, or a slowing economy.

Create effective strategies: Organizations can create effective strategies that are

in line with their goals and objectives when they understand how the outside

world affects their business.

Anticipate change: Environmental scanning helps organizations plan ahead for

changes in the outside world and create strategies to deal with them.

Make informed decisions: It helps organizations learn more about the outside

factors that affect their business so that they can make better decisions.

-Tools

Political

Political issues refer to the level of government intrusion into an organization’s

operations. Primary concerns include taxes, tariffs, regulations, elections, and

political stability.

For example, different political parties hold divergent viewpoints on raising the

minimum wage. Small businesses may be affected by an election.

When one candidate proposes raising the minimum wage, it may impact their
product/service prices and ability to retain current employees.

Economic

Businesses in the United States first consider the overall health of the American

economic factors. Growth, employment, inflation, and interest rates are just a

few examples. Organizations operating outside of the United States will

concentrate on exchange rates.

A startup, for example, may assess the current state of the economy to determine

whether or not it will be able to survive. The long-term revenue and expenses of a

company are affected by economic conditions.

Social

Shifts in age, demographic changes, changing attitudes toward safety and health,

customer preferences, and technical improvements. All are examples of social

challenges. 86 percent of young people, for example, use social media.

As a result, of successful business strategies, millennials are more likely to run

promotional ads, especially on social media platforms.

Technology

The technology involves research and development, robotics, automation, and

any other type of technological advancement. New technologies are referred to

as “technological disruption.” It has the ability to change the cast of leading

competitors dramatically.

For example, the popularity of Facebook was a technological challenge for

Myspace. It was once the most popular social media network in the early 2000s.

Environmental

Climate change, weather, air quality, and natural disasters are examples of

environmental factors. Changes in the environment threaten some industries

more than others.

Farmers, for example, could watch the Weather Channel or read the Farmer’s

Almanac. Because pesticide treatment, irrigation schedule, planting dates, and

fungicide application are all affected by the weather.

Legal

Legal factors involve employment, health, and safety policies. Customer safety

and discrimination laws can also have an impact on a company’s capacity to

operate.