CONCEPT OF PROJECT

Er. Deepak Shrestha

Concept of PROJECT

What is your view about PROJECT?

1. Concept of PROJECT
 A PROJECT is a planned investment undertaken
to deliver a unique product as output.
 Project is not a physical objectives nor it is an end
result.
 Projects operates within the constrain of time, cost
and quality performance.
 Projects should be economically viable,
technically feasible, politically suitable and socially
acceptable.
Concept of PROJECT
According to Cleland and King:
A project is a combination of human and non-
human resources pulled together in a temporary
organization to achieve a specified purpose.
According to Project management Institute of
USA:
Project is a one shot time limited, goal directed,
major undertaking, requiring the commitment of
various skilled and resources.
Concept of PROJECT
According to Harold Kerzner:
A project is any series of activities and tasks that:
 have specific objective to be completed within
certain specifications
 have defined start and end times
 have funding limit
 consume resources.
Concept of PROJECT
S. Choudary:
Project starts from scratch with a define
mission, generates activities, involving
varieties of human and non human resources
all directed towards fulfillment of mission and
stop once the mission is fulfilled.
Types of PROJECT
 Research and development: military weapons
 Construction Engineering Projects: bridge, Highway,
Building, airport, dam, tunnel, electrification etc
 Development of computer software, websites
 Producing TV commercial, a movie
 Industrial product or service
 Development of aeroplane engines, automobile
 Training programs
 Income generating projects for rural area
2. Characteristics of Projects
1. Specific Objectives : A project has clearly defined
objective, which are predetermined.
2. Life Span: A project has a definite life span and
cannot continue fore ever. The starting and end periods
are spell out in the objective.
3. Constraints: A project always operates within
constraints of time , cost and quality performance
4. Unique: each projects has some components that are
unique. No two projects are exactly similar.
5. Team work: Project demand teamwork under the
leadership of project manager. Team consists of
diversified workforce.
 2. Characteristics of Projects
6. Flexibility: Project are flexible and not rigid. Flexibility is
necessary to control and manage project risk.
7. Resource Integration: A project consume and coordinate

resources. A project integrates physical, financial, human and

information resources.
8. Planning and Control: A project requires effective and efficient
planning and control system. Standards are set as yard stick.
9. Contracting and subcontracting: Most projects is characterized

by high level of contracting and subcontracting. Various types of

contracts.
10.Beneficiaries: Project has beneficiaries, who are the users of

output of project.
Types of Contracts

 Turnkey contract
 Lumpsum contract
 Cost plus contract
 Peace work contract
 Labour contract
 Sub contract
3. Project, Programme, System
PROJECT
A series of activities leading to a specific goals has
to be completed within a certain
 Time
 Cost

 Resources
3. Project, Programme, System

PROGRAMME
Programme is the first level of system. Programme
is a cluster of projects. It is integrated time phased
task necessary to achieve a particular objectives. It
has a flexible life spam.
3. Project, Programme, System
A project without programme has no existence.
Project Family Tree
= Plan is setting of goals and choosing the action
to achieve those goals. eg. 5 yrs plan.
= Integrated package of related projects for a
specified sector. eg. Health programme.

= Single entity with specified objectives

operating with in time, cost, quality
constraints. eg hospital construction.
= Package of interrelated activities that are
similar in nature. eg. Sanitation package for
hospital.
= Distinct work activity for a distinct purpose. eg
preparation of contract document for hospital.
Differences between project and programme

PROJECT PROGRAMME

1. one time – set of activities. 1. Grouping of small and big projects.

2. Multiple under taking; boundaries , scope for
2. Well defined scope and boundaries. various projects.
3. Specified objectives 3. Overall sectoral objectives for the
programme as a whole
4. Fixed life span; beginning and end
4. Flexible life span; projects time starts and
time end; continuity of prgm and plan period
5. Specified client and beneficiaries 5. Different clients and beneficiaries
6. Single entity with own budget 6. Various entity and prgm budget
7. Integral part of a Devt. Plan.
7. Integral part of programme.
8. Rigid rules and regulations.
8. Flexible rules and regulations 9. Single prgm manager and many project
9. One Project manager managers
 System

System is defined as a combination of parts forming a complex

unitary whole.
The system approach takes an integrated view.
It considered organization as a system. Organization is a system
consisting of interrelated and interdependent components, which
form a unitary whole.
System is defined as an assemblage or combination of things or parts
forming a complex or unitary whole.
It is an organized or organic whole consisting of several
interconnected and interdependent parts or sub system.
It is comprised of hierarchy of four interdependent parts:
Tasks, Technology, structure and people
ks,
Characteristics of a System
 Goal directed
 Combination of interconnected and interdependent
parts or sub system.
 Can be open or closed system
 Contains hierarchy of system and subsystem
 Exists on a continuous basis
 Exhibits a holistic character
 Produce synergistic effect. Whole becomes grater than
sum of the parts.
 Organization is an open system or input-process- output
system.
Model of system

Inputs
( human & Transformatio
non human n Outputs
resources)

Feedback
Characteristics of a System contd.
 A Plan is a system with different types of
programme as its sub system
 A programme is a system with various projects
 A project is a system with various activities as its
sub system
Project Environment
Environment consists of forces that influence
the project’s ability to achieve its objective.
Projects operate in a dynamic environment.

Project environment can be classified into:

i. Internal Environment
ii Task Environment
iii. External Environment
i. Internal Environment
Internal environment is located within the project. It
is Controllable by the project. It provides strengths
and weaknesses to the project.
The forces in the internal environment consist of:
 Project Objective

 Constraints

 Structure

 Resources
 ii Task Environment
The task environment of a project is made up of
stakeholders. They are either involved in the project or their
interests are affected by the project.
The elements of task environment are:
Customer

Contractor

Consultants

Suppliers

Government

Financiers

Competitors

Labour Unions
iii. External Environment
It is located outside the project. It cannot be controlled
by the project. The project can indirectly influence it.
It provides opportunities and threats to the project.
The forces in the external environment are: (PEST)
i.Political-Legal -P

ii. Economic-E

iii.Socio-cultural-S

iv.Technological-T
Political-Legal -P
 Political system; political parties, election system,
 Political institution; legislature, executive, and

judiciary
 Political Philosophies: democratic, totalitarian or

mixed
Legal Environment
 Law

 Court of Law

 Law Administration
Economic-E
 Economic environment refers to all the economic
surroundings. Important components;
i. Economic system: free market, Centrally Planned
economy, Mixed economy
ii. Economic Policy: Monetary policy, Fiscal policy,
Industrial policy
iii. Economic conditions: Income, Business cycle,
Inflation
iv. Regional economic group: SAARC, EU, ASEAN
Socio-Cultural Environment- S
 Social Environment:
2. Social
1. Demographics Institutions

Social
Environment

3. Pressure Groups
4. Social Change
Socio-Cultural Environment- S ….
 Cultural Environment: influence project by-
influencing the type of project, Creating attitudes
towards work and leisure
Technological Environment-T
 Technological Environment refers to all the
technological surrounding that influence project.

Pace of technological
Level of change
Technology

Technological
Environment

Research and
Development Technology
Budget Transfer
PROJECT LIFE
CYCLE
Er. Deepak Shrestha
PROJECT LIFE CYCLE
A project is “a series of activities aimed at bringing
about clearly specified objectives within a defined
time-period and with a defined budget”.
The ‘project cycle’ is a way of viewing the main
elements that projects have in common, and how
they relate to each other in sequence.
ADB's project cycle :
The various stages from country programming to
project completion and evaluation are known
collectively as ADB's project cycle.
PROJECT LIFE CYCLE
The various phases of project life cycle are:
1. Formulation phase

2. Planning phase

3. Implementation phase

4. Termination phase
PROJECT LIFE CYCLE…
 1. Project Formulation Phase
 This conception is concerned with the germination of
ideas of the project. The basic task in this phase
consists of:
i. Project Identification
It is the conception stage. The projects are germinated
with creative ideas. The sources of ideas can be
developed as:
 Situation survey:
changes and developments in political, legal, economic,
socio- cultural and technological forces in the
environment.
i. Project Identification …
 Internal sources :
Internal source can be the vision, mission, goals,
strategies, and plans of the organizations. The
management identify the opportunities and treats
and employees can also share ideas.
 External sources:
Such sources are client requirement, donor
priorities, legal provisions, and interest of the
political leaders.
 ii. Project formulation
 Project preparation and formulation and project
document formulation are simultaneous processes.
 The project formulation task defines the parameter
of the defined project.
 Project formulation is concentrated with statement
of work and project proposal. It develops
 Objectives and outputs of the project
 Primary estimate of schedule, budget and other
resources.
ii. Project formulation…
Statement of work ( SOW)
SOW defines :-
 Scope and objective of project

 Roles and responsibility of project participants

 Schedule, cost and quality

 Points of agreement between project participants

 ii. Project formulation…
Project Proposal
 Project proposal is the blue print of the project activities.
 Project proposal is divided into technical and financial part.
 Project proposal is based on Prefeasibility study of the project.
 Preliminary design of the project.
 Project manager is appointed during the formulation of the project.
 ORGANOGRAM OF URBAN GOVERNANCE AND DEVELOPMENT PROJECT

Project Director-1

Project Deputy Director-1

Administration Section-9 Technical Section-8 Account Section-2

Admin. Assistant-1   Project Engineer-4     Account Officer-1  

Assistant Admin. Assistant-1 Economist-1   Accountant-1  

Computer Operator-1 Social Development Officer-1  

Driver-3
  Sub-Engineer-2    
Helper-2
 
Sweeper-1
 
 2. Planning Phase
 This phase starts immediately after conception phase.
 This phase is also known as project execution plan work.
 This phase plans resource utilization, prepare detail plans,
estimates, time, cost, and quality.
 The basic tasks of this phase of the projects are
a) Feasibility study
b) Appraisal
c) Detail design
2. Planning Phase…
a) Feasibility study
This determines the implementability of the project.
The areas for which analysis is done are:
i. Technical Analysis : technical specification, alternatives

ii. Financial Analysis : financial sustainability, obligation

iii. Management Analysis: mgmt system to control, implement

iv. Marketing Analysis : acceptable for society

v. Economic Analysis : cost / benefit analysis

vi. Environmental Analysis : IEE/ EIA

2. Planning Phase…
b) Appraisal
It is evaluation of project ‘s ability to succeed. Appraisal addresses:
 Ability of the project to achieve its objectives.
 Comparability of the project with other projects in terms of investment,
cost/ benefit, job creation, profit.
Project Approval
Project selected through appraisal are formally approved by the authorities.
Approval involves:
Finalization of proposals, agreements and contract documents.
Allocation of resources to the project and appropriate regulations for the
project.
2. Planning Phase…
c) Design
Design is concern with:
Preparation of blue print of engineering design and
specifications for construction, facilities equipment, etc.
Preparation of detail implementation plan and work schedules.
Allocation of role and responsibilities.
3. IMPLEMENTATION
PHASE
This phase focus on action and is more or less whole
project.
Almost eighty percent of project work is performed in
this phase.
The basic tasks of implementation phase
are:
Implementation

Control
3. Implementation Phase …
 Implementation
Actual work is done in this phase.
The activities are:
 Tasks are allocated to the team members.
 Decisions are made for procurement of equipment, resources
and services.
 Management information system is set up.
 Project manager motivation lead the team.
 Time schedule is followed.
 Construction work starts.
 Project plans are pursued and adjustments are made as needed.
3. Implementation Phase…
 Control
Control involves supervision and control of project
performance to provide feed back for correction.
Critical path method(CPM), programme evaluation and
review technique (PERT) and other net work analysis are used
for controlling purposes.
Monitoring of the project is done.
4. Termination Phase…
 This phase involve the handover of the project
product. The basic tasks in this phase are:
a) Project evaluation
b) Project handover
4. Termination Phase…
Project evaluation
Evaluation of the project serves as inputs to the conceptual
and definition phase for new project in future.
Evaluation can be carried out during implementation or after
the completion of the project.
Evaluation helps to improve future project planning and
management.
 4. Termination Phase…
Project Handover
Project handover starts when the project work come to end.
This involves following tasks:
 Handing over the completed project to client.

 Project organization is dissolved.

 Human and non-human resources are transfer from the project.

 Project account are closed materials and inventory are adjusted, dues

collected and out standing payments are made.

 Project is terminated.
How many persons can find?
Thank You
Very Much