Definition & Characteristics of a Project

MEANING OF PROJECT
The word 'project' is derived from the Latin word 'Projectum' which means something
prominent. The word 'projectum' has its origin from the Latin word 'proicere' (throw forth)
which in turn is the combination of two Latin words: 'pro' means forth and 'jacere' means to
throw. Literally, the word 'project' refers to a task or a some series of activity undertaken by
an individual or organization in order to attain pre-defined objective within specified time by
making an optimum utilization of available technical, financial, managerial and other
resources of the organization.
In other words, the project can be considered to be some series of activities undertaken that :
(i) have specific objectives to be completed within specified time,
(ii) have limited resources,
(iii) have defined start and end activities,
(iv) have funding limits.
A project is a non-routine, non-repetitive, one-time undertaking. A project can be defined as a
set of inter-related activities that sub-contracts work, encourages team spirit in order to
achieve the specific objectives or deliver the product which could satisfy the needs of the
customers within stipulated time and budget.
For example, a project assigned by teacher to his students, construction project, expansion
project, industrial project and so on.
Definition of a Project
A project is a temporary and unique endeavor undertaken to create a specific product, service,
or result. It has a definite beginning and end, clear objectives, and requires resources such as
time, money, and manpower (PMBOK, 2021). Unlike routine business operations, a project is
not continuous and is intended to achieve a specific goal within a defined scope and timeline.
Projects exist in all industries, including construction, IT, healthcare, and business. For
example, developing a new software application, constructing a bridge, or launching a
marketing campaign are all considered projects. Each project follows a structured approach
known as project management, which ensures that objectives are met efficiently within
constraints such as time, cost, and quality.
Characteristics of a Project
Every project has distinct characteristics that differentiate it from routine work. The key
characteristics of a project are as follows:
1. Temporary Nature
A project is always temporary in nature, meaning it has a well-defined start and end date.
It does not continue indefinitely like ongoing business operations. The temporary nature
ensures that once the objectives are met, the project is closed. Projects may last for days,
months, or years but will always have a defined closure phase. This characteristic makes
project management different from operations management, which involves continuous,
repetitive work. Example: Constructing a hospital is a project that will end once the building
is completed and operational.
2. Unique Output
Every project produces a unique product, service, or result. Even if similar projects are
undertaken, their specific outputs will differ based on requirements, stakeholders, or
conditions. Even if two companies build identical office buildings, differences in location,
materials, or client preferences make each project unique. This uniqueness requires
customized planning and decision-making at each project stage. Example: A mobile app
developed for a banking company will be different from an app developed for an e-commerce
platform.
3. Progressive Elaboration
A project develops through progressive elaboration, meaning that the scope, details, and
execution plan evolve as the project progresses. Initially, the project may only have broad
objectives, and as more information becomes available, the details become clearer. This
characteristic allows flexibility in project management, making it easier to adjust plans based
on changing conditions. Example: A company launching a new product may start with a basic
idea, and as research progresses, the final product design, features, and marketing strategy
become more defined.
4. Defined Resources
Projects require a predefined set of resources, including:
 Financial resources (budget, funding, investments).
 Human resources (project team, employees, consultants).
 Material resources (equipment, raw materials, software).
 Time resources (fixed deadlines, milestones).
Proper resource allocation is critical to ensuring project success. If resources are not
managed well, the project may face delays or budget overruns.
5. Uncertainty & Risk
Projects always involve a degree of uncertainty and risk because they deal with unknown
variables. Risks may arise due to technical issues, market fluctuations, regulatory changes, or
unexpected events like natural disasters. To handle risks effectively, project managers
perform risk assessment and mitigation strategies, such as contingency planning and
adaptive decision-making. Example: A construction project may face delays due to bad
weather, material shortages, or labor strikes.
6. Stakeholder Involvement
Projects involve multiple stakeholders, including:
 Clients/Customers – Those who benefit from the project outcome.
 Project Team – The employees and managers responsible for executing the project.
 Sponsors – Organizations or individuals who fund the project.
 Regulatory Bodies – Government agencies setting rules and compliance standards.
Effective stakeholder management is crucial to ensure smooth communication, decision-
making, and conflict resolution throughout the project lifecycle.

Classification of Projects

1. Classification Based on ‘Activity’

Projects are categorized based on the type of work involved:
 Industrial Projects – These projects focus on manufacturing, production, and
industry-related activities (e.g., setting up a steel plant).
 Non-Industrial Projects – These involve services, education, healthcare, and other
non-industrial sectors (e.g., building a hospital or an IT park).
2. Classification Based on ‘Location’
Projects are classified based on their geographical reach:
 National Projects – These projects operate within a country (e.g., a metro rail project
in India).
  International Projects – These involve operations across multiple countries (e.g., an
international highway project or a global software development initiative).
3. Classification Based on ‘Need’
Projects are categorized based on their necessity and purpose:
 New Projects – These are completely new initiatives, such as launching a new
business or setting up a new factory.
 Diversification Projects – These involve expanding into different business areas:
o Related Diversification – Expansion within the same industry (e.g., a car
company launching electric vehicles).
o Unrelated Diversification – Expansion into a completely different industry
(e.g., a telecom company starting a financial services business).
 Balancing Projects – These aim to balance production or service output (e.g.,
increasing warehouse capacity to meet demand).
 Expansion Projects – These involve increasing the scale of an existing business (e.g.,
expanding a manufacturing plant).
 Modernization Projects – These focus on upgrading existing infrastructure or
technology (e.g., automating production lines).
 Replacement Projects – These involve replacing outdated or non-functional
equipment or processes (e.g., replacing coal-based power plants with renewable
energy sources).
4. Classification Based on ‘Size’
Projects are classified based on their scale and complexity:
 Small Projects – Low investment, short duration, and limited scope (e.g., developing
a website).
 Medium Projects – Moderate investment, duration, and complexity (e.g., setting up a
regional office).
 Large Projects – High investment, long duration, and extensive resources (e.g.,
constructing an airport).
Within large projects:
 Normal Projects – Have a planned schedule and are executed at a standard pace.
 Crash Projects – Require urgent execution due to critical deadlines (e.g., emergency
hospital construction during a pandemic).
5. Classification Based on ‘Time’
Projects are categorized based on urgency and time constraints:
  Public Sector Projects – Government-funded projects aimed at public welfare (e.g.,
road development projects).
 Private Sector Projects – Business-driven projects for profit-making purposes (e.g.,
a private shopping mall construction).
 Joint Sector Projects – Collaborative projects between the government and private
companies (e.g., public-private partnership projects like metro rail networks).
Project Life Cycle (PLC)
The Project Life Cycle (PLC) represents the structured phases a project undergoes from
inception to completion. It serves as a framework that helps project managers efficiently plan,
execute, and control projects to achieve desired outcomes. The life cycle consists of five key
phases: Initiation, Planning, Execution, Monitoring & Controlling, and Closure. Each
phase plays a critical role in ensuring the project meets its objectives within defined
constraints such as time, cost, and quality.
1. Initiation Phase
The Initiation Phase is the foundation of a project, where the need for the project is
identified, and feasibility is assessed. This phase involves defining the project objectives,
scope, and constraints. A feasibility study is conducted to determine whether the project is
viable in terms of resources, technical capabilities, and financial investment. Stakeholder
identification is also crucial at this stage to ensure that all key parties, including clients,
sponsors, and regulatory bodies, are considered. Additionally, a Project Charter is created,
which serves as a formal document authorizing the project. Without a well-defined initiation
phase, the project risks unclear goals and inadequate resource allocation.
2. Planning Phase
Once the project is approved, the Planning Phase begins. This stage is crucial as it lays out
the roadmap for the project's success. A detailed project management plan is developed,
covering various aspects such as scope, budget, timeline, and resources. Risk assessment is
conducted to identify potential challenges and create mitigation strategies. The Work
Breakdown Structure (WBS) is also created, dividing the project into smaller, manageable
tasks. Additionally, project scheduling is done using tools like Gantt charts or Critical Path
Method (CPM) to ensure that tasks are completed on time. The planning phase ensures that
all team members have a clear understanding of their roles and responsibilities, reducing the
risk of confusion and inefficiencies.
3. Execution Phase
The Execution Phase is where the actual work begins. This phase involves mobilizing the
project team, allocating resources, and implementing the planned activities. Effective
communication and coordination among stakeholders play a crucial role in ensuring smooth
operations. Regular team meetings and progress reports help track performance against the
project plan. Quality assurance processes are also implemented to ensure that deliverables
meet the required standards. Any unexpected issues that arise are addressed promptly to avoid
delays. This phase is often the longest and most resource-intensive stage of the project life
cycle.
4. Monitoring & Controlling Phase
To ensure the project stays on track, the Monitoring & Controlling Phase runs parallel to
the execution phase. It involves tracking project performance, measuring progress
against key performance indicators (KPIs), and identifying deviations from the plan.
Project managers use tools like Earned Value Management (EVM) to compare planned and
actual progress. If discrepancies are found, corrective actions are taken, such as reallocating
resources, adjusting schedules, or revising project scope. Continuous monitoring helps in risk
management by detecting potential problems early, thereby preventing costly delays or
failures.
5. Closure Phase
The final stage of the Project Life Cycle is the Closure Phase, where all project activities
are completed, and deliverables are handed over to the client or stakeholders. This phase
includes finalizing contracts, obtaining approvals, and ensuring that all objectives have been
met. A post-project review is conducted to evaluate the project's success and document
lessons learned. These insights can be used for future projects to improve efficiency and
effectiveness. Additionally, team members are reassigned to new projects, and any remaining
financial transactions, such as vendor payments, are completed. Proper closure ensures that
the project is formally concluded and that stakeholders are satisfied with the results.
Conclusion
The Project Life Cycle (PLC) provides a structured approach to managing projects, ensuring
that they are completed successfully within the allocated time and budget. Each phase—
Initiation, Planning, Execution, Monitoring & Controlling, and Closure—is essential for
maintaining project efficiency and achieving the desired objectives. By following this
structured framework, organizations can minimize risks, optimize resource utilization, and
enhance project success rates. Properly managing the life cycle of a project ultimately leads
to improved productivity, stakeholder satisfaction, and business growth.

Advantages and disadvantages of project life cycle

Now that you have a thorough understanding of the phases of the project management life
cycle, let’s look at the pros and cons.
Take note: The following is a high-level look at the pros and cons of the project life cycle
and doesn’t involve a one-to-one comparison between the different types of project life cycle
models.
Advantages of project life cycle
1. A reliable structure for managing and delivering projects helps teams navigate and
deliver projects on time and on budget
 2. The framework, which is usually visible to all, makes it easy to define roles, so
everyone knows what to do
3. You can easily track the project’s progress against the phases. Everyone can easily
stay updated on the project’s status
4. Clear steps, deliverables, and project goals foster better communication and
collaboration
5. Planning for risks is easy so that you can minimize their impact
Disadvantages of project life cycle
1. The project life cycle consists of distinct phases, making it rather rigid. This
rigidity is not suitable for all projects. It may be why there are different versions of
the cycle to accommodate different project types
2. A rigid project approach can stifle creativity, particularly moving through the
project linearly
3. Some teams overcomplicate the stages of the cycle, which leads to slow project
delivery and unnecessary costs
4. Moving through the life cycle can be overly time and resource intensive
5. Teams can waste time, money, and resources if the need or problem isn’t properly
defined