Course Name:

Project Planning and

Management

Wolkite University
College of Business and
Economics
Department of Management
Instructor: Berhanu Tereda(Assistant
Professor)
1
Course Contents
Chapter 1
Project
Management:
An Overview
Chapter 6
Chapter 2
Project The Project
Financing Cycle

Chapter 5
P
Project
Implementatio
n, Monitoring
and
M Chapter 3
Project
Identification
Evaluation

Chapter 4
Project
Preparation
Group Assignment
Topic

Project
Project
Planning &
Proposal
Management
 Chapter One
Project Management:
An Overview
 Introduction
o People have been conducting projects for centuries.
The Pharaohs built the Pyramids of Egypt around 2500
BC, in 208 BC the Great Wall of China was constructed,
rock hewn churches, Axum obelisk and Gondar
fasildes, Grand Renaissance Dame etc. in Ethiopia.
o Project management isn’t new, but the history of
project management is a relatively new development.
It’s only once the discipline had been codified that we
could start to look back and identify key points in time
that contributed to its development.
o In today's fast growing business world, the need
for successful project management has become
a necessity rather than a luxury.
 Definitions of a Project
 The term project defined as a series of related
activities (jobs) usually directed toward some major
output and requiring a significant period of time to
perform.
 A project is an activity that require resource, time,
objective, with fixed deliverables.
 “A Project is a temporary effort undertaken to create
a unique product or service”.
 A project is accomplished by performing a set of
activities. For example, construction of a house is a
project. It consists of many activities like digging of
foundation pits, construction of foundations,
construction of walls, construction of roof, fixing of
doors and windows, fixing of sanitary fittings, wiring,
etc.
 Cont’d
o J. M. Juran defined that “a project is a problem
scheduled for solution. “Problem refers to the gap
between where you are and where you want to be,
with an obstacle that prevents easy movement to
close the gap.
o A project is a one-time, multitask job with a definite
starting point, definite ending point, a clearly
defined scope of work, a budget, and usually a
temporary team.
o Projects differ in size, scope, cost, and time, but all
have the following characteristics: A start and a
finish, A life cycle involving a series of phases
in
between the beginning and end, A budget and A set
of activities which are sequential, unique
and non-repetitive
 Why Projects are initiated?
 Different organization initiate a project as a result of one or
more of the following situations:
o When starting a new business: A market demand (e.g., a
consumer product company authorizing a project to develop a
new fruit drink for kids with less sugar in response to an
increased health awareness)
o To introduce new equipment, tools or techniques.
A customer request(e.g., an delight park authorizing a
company to develop a new bar cloth).
o For implementing a new system or process. A
technological advance (e.g., an electronics firm
authorizing a new project to develop a faster, cheaper,
and smaller net book).
 Cont’d
o In order to develop/ modify a product or
service: A business need(e.g., a publisher
authorizing a project to write a new book to increase
its revenues).
o For regulatory mandate: A legal
requirement(e.g., Ethiopian federal government
authorizes a project to establish laws for controlling
the home loan system).
o For some community issues: A social need(e.g., a
non-governmental organization authorizing a project
to raise the awareness of donating blood)
o In order to re-engineer the process so as to
reduce complaints, reduce cycle time, and
eliminate errors.
 Characteristics of a Project
 Generally, all projects are characterized by a certain
features which may be common to all. Thus;
 Temporary signifies that there is a discrete and
definable commencement and conclusion; and, as
such, a key indicator of project success is how it
performs against its schedule that is, does is start
and end on time?
 Uniqueness: Every project is unique and no
two projects are similar. Setting up a cement
plant and construction of a highway are two
different projects having unique features.
 Non – repetitive. A repetitive job is not a
project. Neither is performing a single task over
and over. There may not be a need to repeat the
project once it is completed.
 Cont’d
 Objectives: Directed towards achieving a specific
result or has a single goal or a set of goals. Once the
objectives are achieved the project is treated as
completed.
 Life cycle: a project has a life cycle. The life cycle
consists of four stages i.e. Project Initiation stage,
Project Planning stage, Project Execution stage, and
Project Closure stage.
 Risk and Uncertainty: risk and uncertainty go hand
in hand with project. A risk-free, it only means that
the element is not apparently visible on the surface
and it will be hidden underneath.
 Budget: usually during the planning adequate budget
allocation is mandatory for the smooth flow of all
project related activities.
 Cont’d
 Use of Resources. Resources are quite necessary
for successful accomplishment activities. The
resources i.e. Material, human, financial may be
coordinated from various sources.
 Customer specific nature: It is always customer
specific and it is a customer to decides upon the
product to be produced or services to be offered and
hence it is the responsibility of any organization to go
for projects/services that are suited to customer
needs.
 Change: Changes occur throughout the life span of a
project as a natural outcome of many environmental
factors. The changes may vary from minor changes
to major changes which may have a big impact or
even may change the very nature of the project.
 Cont’d
 Optimality: A project is always aimed at
optimum utilization of resources for the overall
development of the economy.
 Unity in diversity: A project is a complex set
of thousands of varieties like technology,
equipment and materials, machinery and
people, work, culture and others.
 Teamwork: Project is a team work and it
normally consists of diverse areas. Diverse
specialized personnel, co-ordination among the
diverse areas calls for team work
 Classification of a Project
 Projects can be classified based on several criteria. The
location, type, technology, size, scope and speed
are normally the factors which determine the effort
needed in executing a project. Project can be classified
based on;
1. Project Life-span
 Short Range Projects: They are completed within one
year, and are focused towards achieving the tactical
objectives. They are less difficult; require less or no
risk. These projects require limited project management
tools, and have low level of sophistication. It is easy to
obtain approval, funding and organizational support for
short range projects. For example, reduce defect in
shop number two from 6 to 4 percent.
 Cont’d
 Long Range Projects: These projects involve higher
risk and a proper feasibility analysis is essential before
starting such projects. Their major impact is over long
period of time, on internal as well as external organization.
Large numbers of resources are required to undertake long
range projects and they require breakthrough initiatives
from the members.
2. Ownership
o Private sector- mostly projects undertaken by
business enterprises.
o Public sector- projects undertaken by national and
local government body.
o NGO‟s – development projects undertaken by non-
government and not for profit organizations.
 Cont’d
3. Based on the sources of finance
o Government capital
o Government capital and external sources
o External sources of finance.
4. Based on the forces behind
o Demand driven/need driven- based on
identified unsatisfied demand project can be
created or on unsatisfied basic needs like
food, water, and shelter.
o Donor driven- the force behind the financing
organization.
 Project Management
 Project management is an organized
venture for managing projects.
 It involves scientific application of
modern tools and techniques in planning,
financing, implementing, monitoring,
controlling and coordinating unique
activities or tasks or produce desirable
outputs in accordance with the pre-
determined objectives within the
constraints of time and cost.
 “Project management is the skills, tools
and management processes required
to undertake a project successfully”.
 Cont’d
 Project management comprises:
 A set of Skills. Specialist skills and experience
are required to reduce the level of risk within a
project and thereby enhance its likelihood of
success.
 A Suit of Tools. Various types of tools are used
by project managers to improve their chances
of success. Examples include registers,
planning software, modelling software, audit
checklist and review forms.
 A Series of Processes. Various management
techniques and processes are required to
monitor and control time, cost, quality and
scope of projects. Examples include time
management, quality management, change
management, risk management, etc.
 Cont’d
 Every person, every organization and every
nation is concerned with project
management.
 An individual builds a house. It is a
project to him.
 An organization sets up new factory. It is
a project for the organization.
 The government of a country builds high
ways, dams, thermal power plants,
hydropower plants, airports, industrial
parks, etc. These are all projects that a
country undertakes.
 PM Objectives
 The objective of PM is to inform professionals in
the art and science of directing and coordinating
human, equipment, material and financial
resources to develop a project in a way that they
could give maximum attention to project details
in the most cost-effective way possible while
maintaining a broad perspective.
 Project management as its objectives could
enhance the following attributes of professionals:
 Technical skill,
 Communication skill,
 Decision making skill,
 Problem-solving skill,
 Interpersonal skill,
 Leadership skill,
The Role of Project Manager
• A project manager is a professional in the field of project
management. They have the responsibility of the planning
and execution of any project.
• A project manager's central duty is to ensure the success
of a project by minimizing risk throughout the lifetime of
the project. The general tasks of a project manager are:
 Supervision and guidance to the project team
 Regular (weekly/monthly) project status reports to the
project sponsor/ steering committee
 Execute project management processes: risk, issues,
change, quality, and document management
 Ensure project plan, schedule & budget are up-to-date;
detect & manage variances
 Cont’d
 The following four activities are the major ones
that to be undertaken by the project managers:
 Traditional Management: The project manager
plays the leadership role in planning, organizing,
and controlling the project to accomplish the
project objective.
 Communication: This refers to exchanging routine
information and processing paperwork.
 Human Resource Management(HRM): The project
manager assigns responsibility and delegates’
authority to specific individuals or subcontractors
for the various tasks.
 Networking: It includes socializing, and interacting
with outsiders.
 Success for Project
Managers
 There are three general preconditions for
achieving lasting success as Project Manager.
These include:
 Ability (A)
 Motivation to manage (M)
 Opportunity (O)
Together, they constitute the basic formula for
managerial success
S=AxMxO
 The Project Management
Process
• Clearly define the project objective: The definition
must be agreed upon by the customer and the individual
or organization that will perform the project.
• Divide and subdivide the project scope into major
“pieces,” or work packages.
• Define the specific activities that need to be
performed for each work package in order to accomplish
the project objective.
• Make a time estimate for how long it will take
to complete each activity. It is also necessary to
determine which types of resources and how many of
each resource are needed for each activity to be
completed within the estimated duration.
 Cont’d
• Make a cost estimate for each activity. The
cost is based on the types and quantities of
resources required for each activity.
• Calculate a project schedule and budget
to determine whether the project can be
completed within the require time, with the
allotted funds, and with the available
resource. If not, adjustments must be made
to the project scope, activity time estimates,
or resource assignments until an achievable,
realistic baseline plan (a roadmap for
accomplishing the project scope on time and
within budget) can be established.
 National Development Planning and
Project Analysis
• National planning is the mechanism by which governments
set up their proprieties, objectives and demonstrates their
intension. Project analysis and national development
planning are closely related;
• The best economic appraisal of projects cannot be made
without referring to such plans and policies of the country
• A sound plan requires a great deal of knowledge about
existing and potential projects.
• The more elaborate the plans and policies of the
government, the easier becomes the work of the
project planner. It is obvious that the successful
formulation and implementation of a national development
plan depends on the proper selection of projects and on
the consequent sector programs.
• GTP I/II/III Country level activities/objectives
 Project Family Tree
 A project normally originates from a plan,
national plan or corporate plan.
Plan = National/Corporate plan with target for growth. (How to achieve the objectives i.e.
ADLI to Industry)
Programme = health programme, educational programme, R&D programme. (On which
programme it requires more attention?

Project = Power plant, hospital, housing project etc. (How to advance the programme)

Work Package = Water supply, power supply and distribution package. (What facilities need to
fulfil?
Task = Award of water supply contract, construction & foundation. (Who Perform what?

Activity = Excavation, laying of cable, preparation of drawing. (What set of activities need to
perform?
 Cont’d

Development Goal/objective

Development Strategy

Development plan

Agri. Industry. Service Educ.

Project 1 Project 2 Project 3 Project 1 Project 2 Project 3

Figure 1.1. Project, Planning And Program (Project Family Tree)
 Cont’d
 Development Goal/Objectives
 A statement of intention or aspiration of a government
to improve the living conditions of its people – vision
of the government. Example, Growth, Equity in income
distribution
 It is a comprehensive statement which guides development.
 It determines the environment or framework within which
development is expected to take place.
 Development Strategy
 A general method of achieving specific objectives
 It describes the essential resources, which will be
committed to achieve objectives.
 It also explains how these resources will be organized. Ex.
how to organize the labor force?
 It can take different forms such as import substitute, export
promotion, ADLI etc.
 Cont’d
 Development Plan:
 Plans are designed as a means to accomplish
development strategies. National plan should
identify priority areas and set a specific objective.
The specific objective can be achieved through
various means (fiscal policies and development
projects).
 Project can, therefore, be seen as policy
instruments through which national and
sub national plans are translated in to action.
Projects are often referred to as the “cutting edge of
development”.
 The national and sub national plans serves as frame
of reference for the identification and evaluation of a
project.
 PROJECTS AND PROGRAMS
 A “program” a series of projects whose
objectives together contribute to a common
Overall Objective, at sector, country or even
multi-country level
Example: a health program may include a water
project as well as construction of a health center,
both aim at improving the health of a given
community.
 The term “project” mean a group
of activities undertaken to produce a Project
Purpose in a fixed time frame
 Cont’d
Similarity:
‰They both have objectives
Require financial, human, material, and
other inputs (or resources).
Generate outputs of value (i.e.
goods/services).
Serve as instruments for the
execution of development plans and
attain national goals
 ……….Difference
 Project have:  Program have:
 Specific objectives  General objectives
 Specific location  No specific location
 Specific beneficiary  No specific
group beneficiary group
 Clear determined  No clear determined
allocated funds & allocated funds
 Specific life time  No specific life time
 The End
10Q for your Attention!!