Project Appraisal and Management

Definitions of a Project:
Literal meaning “a specific Plan”
“a specific Design”
Technical meanings “A temporary attempt to create a
unique product or service.”
“A temporary effort to create a unique product or service
within constraints of time or cost.”
A project is a human activity that achieves a clear objective
against a time scale.
How Projects are Generated
To meet public demand (Easypaisa, Metro) /organizational
requirement (al-Jamia) , the solution of the problem (IIUI 1
wifi, Covid Vex.), legal requirement (SECP/SBP) or for
innovation (R&D for pharmaceutical co.).
Characteristics of Projects: 1. Projects are different from
ordinary work. They are intended to bring change.
2. It must have clear start and end date (Project must have a
limited time frame).
3. Projects have to be planned.
4. Projects use resources and need a budget.
5. It has specific goals and objectives to be achieved.
6. It results in something to be delivered.
7. It is a choice among various options/alternatives.
8. Project team constitutes multi professional team.
9. The activities concerning projects cannot be handled within
normal operational limits of an organization.
10. It is means to achieve strategic objectives of an organization.
11. Fulfills the customers’ needs. 2
12. Projects are unique.
13. Projects are the cutting edge of development.
Types and Life of a Project

Projects are essential for almost all fields. Following

are the lives of the projects related to different fields.
• The lives of engineering projects ranges from 6
months to 2 years.
• The lives of construction projects are 3 to 5 years.
• The lives of nuclear projects are more than 5 years
(10-12 years).
• The lives of Insurance projects are 2 weeks.

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 Appraisal and Evaluation
• In simple words Project appraisal and evaluation Is project
assessment.
• Assessment means whether a project is worthwhile and therefore
it should be conducted.
• The process of project evaluation is concerned with assessing, in a
revising sense, the performance of a project after it has been
implemented and completed.
• The purpose of project appraisal is to establish whether a project
is worthwhile in the light of its costs, in terms of resource
commitments and the projects expected benefits. That is,
appraisal is a pre assessment of a project and is the key element in
the decision as to whether or not to proceed with a project.
• In practice, this is a complicated and sophisticated process of
enquiry, with substantial data requirements.
• Examination of the viability of the project may require the 4
specialized services of appraisal by consultants.
• Appraisal covers four major aspects of the project; technical,
 Project versus Operational Work
• Operational works are done to achieve business goals,
whereas projects are executed to start new business
objectives.
• One or more projects may be executed to provide inputs to
operations for better implementation. Therefore, operations
and projects have few intersection points.
• Project management is used to manage projects whereas
business process or operations management is used to
execute operations.
• Basically, Projects are means of executing those activities that
cannot be addressed within the organization’s normal
operations limit.
• We can escalate the fundamental difference between Project
work and Operational work by listing down the differences & 5
similarities of them.
 Project versus Operational Work Cont.
Difference between Projects and Operations are:
Projects Operations
1. Temporary Ongoing
2. Output: Unique Output: Repetitive
3. Purpose: Attain its objective Purpose: Sustain the
and then terminate Business
4. Concludes when its specific Adopt a new set of
objectives
objectives have been attained and the work continues
Similarities between Projects and Operation
• Performed by people
• Constrained by limited resources
• Planned, executed, and controlled 6
 Projects and Strategic Planning
“Projects are often utilized as a means of achieving an organization’s
strategic plan”.
Projects are typically authorized as a result of one or more of the following
strategic considerations:
1. Market demand 2. Strategic opportunity/business need
3. Customer request 4. Technological advance
5. Legal requirements
Projects (within programs), are a means of achieving organizational goals
and objectives, often in the context of a strategic plan.
• Project Management
• “A series of flexible and iterative steps through which we identify where
we want to go, a reasonable way to go there, with particulars of who will
do what and when”
• “Project management is defined as managing or directing time, material,
labor or cost to complete a project in an orderly economical manner and
to meet the established objectives of time and cost.
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• “Project management is the science (and art) of organizing the
components of a project, whether the project is development of a new
product, the launch of a new service.”
Process of Project Management
No matter what the type of project is, project management
typically follows the same pattern:
1. Definition
2. Planning
3. Execution
4. Control
5. Closure
6. Evaluation
1. Defining the Project
• In this stage the project manager defines what the project is.
• What the users hope to achieve by undertaking the project.
• This phase also includes a list of project deliverables.
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• The outcome of a specific set of activities.
 Process of Project Management Cont.
2. Planning the Project
• Define and list all project activities or tasks.
• How the tasks are related, how long each task will take, and how
each tasks is tied to a specific deadline.
• This phase also allows the project manager to define relationships
between tasks, so that if one task is x number of days late, the
project tasks related to it will also reflect a comparable delay.
• Likewise, the project manager can set milestones, dates by which
important aspects of the project need to be met.
• Requirements for completion of the project.
• Identify how many people and how much expense "cost" is
involved in the project, as well as any other requirements that are
necessary for completion of the project.
• Specify the risk related to the project and identify project
constraints. Constraints typically relate to schedule, resources, 9

budget, and scope.

 Process of Project Management Cont.
3. Executing the Project
• Build the project team.
• How many resources and how much the budget.
• The project manager then assigns those resources
and allocates budget to various tasks in the project.
Now the work of the project begins.
4. Controlling the Project
• The project manager is incharge of updating the
project plans to reflect actual time elapsed for each
task.
• By keeping up with the details of progress, the
project manager is able to understand how well the 10

project is progressing overall.

 Process of Project Management Cont.
5. Closure of the Project
• In this stage, the project manager and business owner pull
together the project team and those who have an interest in
the outcome of the project (stakeholders) to analyze the final
outcome of the project.
6. Review and Evaluation
• Once the project is completed, it needs to be evaluated so as to
enable analysts to assess its performance and outcome.
• Thus, evaluation is a post assessment of whether the project
was worthwhile.
• It seeks to answer such questions as:
1. Has the project been successful in attaining its objectives?
2. If not, in what respect has it failed?
3. How might its design and/or implementation have been 11
improved?
Three Important Components of Project Management
Project management consists of three important components
1. Time
2. Money
3. Scope
Reducing or increasing any one of the three will probably have an
impact on the other two.
If a company reduces the amount of time it can spend on a project,
it will affect the scope and monetary expenses of the project.
Benefits of Project Management:
1. More work in less time with few people.
2. Better control.
3. Facilitate working of the organization.
4. Means for solving the problem. 12
5. Increasing quality and profits.
6. Deliver solution.
 What is a Project? Think!
• Can you Identify a project?
• Is there anything you can do for society?
Suppose you are working for a bank…..
A wonderful idea comes into your mind…..
You may want to discuss the idea with the marketing
head…..
But what actually a new idea is……
A new Card….

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 Is it fulfill the Characteristics of a Project?
Characteristics of Projects:
1. Projects are different from ordinary work. They are intended to
bring change .
2. It must have clear start and end date.
3. Projects have to be planned.
4. Projects use resources and need a budget.
5. It has specific goals and objectives to be achieved.
6. It results in something to be delivered.
7. It is a choice among various options/alternatives.
8. Project team constitutes multi professional people.
9. The activities concerning projects cannot be handled within
normal operational limits of an organization.
10. It is means to achieve strategic objectives of an organization.
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11. Fulfills the customers needs.
12. Projects are unique.
Our Proposed Project Fulfills the main Characteristics of a Project
1. Is it different from the existing products?
Yes, credit plus debit card is a brand new idea. In the global world such
a product is not available.
Can it bring a change?
Yes, it can bring a change, it is a 2 in 1, customers may enjoy the
benefits of credit and debit cards with the new card.
2. Is there a clear start and end date?
Yes, we can complete the task within a month.
3. Is it planed?
Yes, we planed to simplify the two vital banking facilities.
4. Does it requires resources and budget?
Yes, no lunch is free we have to allocate resources and budget to
accomplish the task.
5. What are the goals and objectives of the proposed project?
It is a piece of mind for the customer i.e. use your money for 15
transections once the money is fully spent customer may use credit
facility for the day to day payments.
Our Proposed Project Fulfills the main Characteristics
of a Project Cont.
6. Is there something to be delivered?
Yes, brand new product.
7. Is it a choice among various alternatives?
Yes, it is one of the alternatives there are many alternatives like CNIC may also
be used instead of our card for similar functions.
8. Is it executed by a multi-disciplinary team?
Yes, services of computer programmers/ IT experts, financial experts etc. are
also required to undertake such a project.
9. Is it a means to achieve strategic objectives of an organization?
Yes, our new product fulfills the objectives of the organization.
10. Is it different from the normal operational activities?
Yes, it is different from the normal operational activities.
11. Is it fulfills the customer need?
Yes, it will satisfy the customer need.
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12. Is it Unique?
Yes, because such a facility does not exist. It is a brand new way to offer services
to the customers. Although the service is not new but it is a refined service.
Examples of the Projects from the Past
National Projects:
• Easypaisa
• Telecommunication infrastructure by Wateen
• Motorways
Local Projects:
• IIUI Wifi
• Aljamia
Any project may or may not be successful.
For example Easypaisa was so much successful that
all the competitors offered similar service i.e.
Upaisa, Jazzcash etc. 17

On the other hand project by Wateen was a failure.

Some Important Examples of the International Projects
• $300 million was spent on the advertisement of Gillette
Mach 3 Razor
• Booing invested $7 billion on 787 aircraft
• Airbus invested $ 12 billion for A 380 superjumbo aircraft.
• All such investments are just like a bet.
• Investment sometimes results in huge loses e.g. Iridium
communication satellite system which was planning to
offer instant telephone connections worldwide, soaked up
$ 5 billion & after its launch in 1998. It needed 400,000
customers for just break even but company attracted
small fraction of that target number, so after one year it
became bankrupt & sold for just $25 million.
• (whatsapp vs one of largest airline, imhalal,) 18
• In late 2011 I'mHalal had to close its search service due to lack of funds.
• Dear I’mHalal Users,
• In September 2009 – we introduced the world to I’mHalal, a search
engine initially built to serve Middle East Internet users. We were driven
by a noble cause: To attract more Middle Easterners to the World Wide
Web by providing all households a relevant and safe search portal to
gather information and explore the web. We decided it was time for all
households in the MENASA region to be able to make use of mankind’s
biggest invention to educate themselves independently: The Internet.
• We truly believed that I’+mHalal could become the entry point of
Internet access in the MENASA region and would increase the Internet
penetration in the region as more people would gain confidence in
engaging search and explore activities in a more trustworthy
environment.
• A few months after our launch we had already attracted our 10 Millionth
unique visitor, over 70 Million search queries had been conducted on
ImHalal.com, we had won the Kasehdia Best Innovation award and we
were right on track to make a difference in the world. 19

• Regardless all the tremendous successes we’ve achieved our story

unfortunately doesn’t have a happy ending.
• Our overnight s uccess eventually resulted in our inability to exist. As our
operating cost kept rising we failed to secure additional funding to power our
growth.
• The past few months we’ve been trying to find a good investor from the
MENASA region, but we failed. This forced us to stop the development of
I’mHalal a few months ago and unfortunately we’ve got to announce that
I’mHalal will be shut down within the next few weeks.
• I’mHalal has truly been an amazing adventure for all of us and it’s really sad
that this project hits the deadpool. We had great plans to shape the Internet
landscape into a more hyper-localized and cultural biased media but that
unfortunately isn’t up to us anymore at this point. We might come back in the
future better organized, prepared and funded.
• We would like to thank all our advisors, partners and associates for supporting
us. You’ve all been great and will not be forgotten.
• Last but not least we know our service wasn’t perfect so thank you – our dear
users that have supported us till the end. We’ve received tens of thousands of
fantastic emails from supporters from all around the world and of all beliefs.
Your support has been utterly inspiring!
• I would like to close with a quote: “The only failure in life is the failure to not 20
try”.
Yours truly,