INTRODUCTION

PROJECT MANAGEMENT
Dr. Kahsu Mebrahtu Areaya (Assistant Professor)
Mekelle University
College of Business and Economics
School of Management
Department of Management
Post Graduate Program (MBA)
Chapter Objectives

After studying this chapter, you should be able to:

 Understand the concept of a project

 Identify the types/classification of projects
 Understand the importance and main features of a
project

Project Management by Dr. Kahsu Mebrahtu 2

Areaya, MU,CBE, School of Management ,
Department of Management
 Introduction
 The forces to emerge project management as
an area of discipline are:
 The exponential expansion of human knowledge
 The growing demand for a broad range of
complex, sophisticated, customized goods and
services
 The evolution of worldwide competitive markets
from the production and consumption of goods
and services.
Project Management by Dr. Kahsu Mebrahtu Areaya, 3
MU,CBE, School of Management , Department of
Management
What is Project?

 A project is defined as a unique set of

coordinated activities, with definite starting and
finishing points, undertaken by an individual or
organization to meet specific objectives within
defined schedule, cost, and performance
 Any undertaking with a defined starting point and
defined objectives by which completion is
identified
 Example: New business establishment, Expansion of existing business, Launching new
product, Replacement of old equipment, machinery, etc.,
Project Management by Dr. Kahsu Mebrahtu 4
Areaya, MU,CBE, School of Management ,
Department of Management
…. What is Project?
 A sequence of unique, complex and connected activities
Having one goal or purpose and
That must be completed by
 A specific time,
 Within budget, and
 According to specification. (Wysocki)
 A temporary endeavor undertaken to create
a unique product or service

Project Management by Dr. Kahsu 5

Mebrahtu Areaya, MU,CBE, School
of Management , Department of
What is Project Management?
 Project management is the process of integrating
everything that needs to be done as the project
involves through its lifecycle (from concept to
handover) in order to meet the project’s objectives
(Morris)
 It is the application of knowledge, skills, tools and
techniques to project activities in order to meet
stakeholder’s needs and expectations from a
project. (Burke)
Project Management by Dr. Kahsu 6
Mebrahtu Areaya, MU,CBE, School
of Management , Department of
…What is Project Management?
 Project management involves project planning and project monitoring
and includes such items as:
 Project planning
– Definition of work requirements
– Definition of quantity and quality of work
– Definition of resources needed
 Project monitoring
 Tracking progress
 Comparing actual outcome to predicted outcome
 Analyzing impact
 Making adjustments

Project Management by Dr. Kahsu 7

Mebrahtu Areaya, MU,CBE, School
of Management , Department of
Why management?
 Because of the scarce resources ( material,
manpower, money, time and information)
 What is expected:
– Planning
– Organizing
– Leading
– Controlling..

Project Management by Dr. Kahsu 8

Mebrahtu Areaya, MU,CBE, School
of Management , Department of
…What is Project Management?
 Successful project management can then be defined as
having achieved the project objectives:
 Within time
 Within cost
 At the desired performance/technology level
 While utilizing the assigned resources effectively and
efficiently
 Accepted by the customer

Project Management by Dr. Kahsu 9

Mebrahtu Areaya, MU,CBE, School
of Management , Department of
CLASSIFICATION OF A
PROJECT
 Industrial/Commercial projects
 For example, establishment of factories, industries, service rendering

enterprises, etc.

 Agricultural projects
 For example, establishment of farming, breading, forestry,
horticulture, fishery, etc.
 Infrastructure projects
 For example, establishment of roads, airport, schools, health stations,
hospitals, universities, etc.

Project Management by Dr. Kahsu 10

Mebrahtu Areaya, MU,CBE, School
of Management , Department of
….CLASSIFICATION OF A
PROJECT
 New Investment
 Designed to establish a new productive process
independent of previous lines of production. They often
include a new organization, financially independent of
existing organization.
 Expansion Projects
 Repeating or extending an existing economic activity with
the same output, technology and organization.
 Updating projects
 Replacing or changing some elements in an existing
activity without a major change of output
Project Management by Dr. Kahsu 11
Mebrahtu Areaya, MU,CBE, School
of Management , Department of
CHARACTERISTICS OF A
PROJECT
 a) General Characteristics
 the commitment of scarce resources to a specific line of
action
 committed for a long period to produce benefits
 defined action , special arrangements and procedures
for their planning, appraisal & control
 special financial arrangements, including loans from
overseas, development banks, and other agencies

Project Management by Dr. Kahsu 12

Mebrahtu Areaya, MU,CBE, School
of Management , Department of
…CHARACTERISTICS) OF
A PROJECT
 b) Specific Characteristics
 Importance- it must be important in the eyes of top management
 Objective- it is goal directed, i.e., it is meant to achieve a specific
objective.
 Scarce resource- it has limited budgeted, both for personnel as well as
other resources
 Conflicts- it competes with other projects or functional departments for
resources and personnel.
 Life span- it has a beginning and an end.
 Single entity- it is distinct and separate entity from others
 Teamwork- it is a pool of variety disciplines.
 Life cycle- project has a start, growth, maturity and decline stages.
Project Management by Dr. Kahsu 13
Mebrahtu Areaya, MU,CBE, School
of Management , Department of
…b) Specific Characteristics
 Uniqueness
 Interdependencies- it interacts with other projects being
carried out simultaneously by their parent organization
 Changes- it is subject/susceptible to changes as the
environment (internal/external) is changing
 Made to order- projects are often made to order
 Subcontracting
 Risk and uncertainty- there is risk and uncertainty
associated with a given project
 Routineness of task- increases as we go to the finishing
stage.

Project Management by Dr. Kahsu 14

Mebrahtu Areaya, MU,CBE, School
of Management , Department of
ROLE OF PROJECT MANAGER
 Project manager is the individual responsible for
delivering the project, i.e., someone that has the necessary
knowledge, skills, tools, and techniques to manage a
unique endeavour and ensure that it meets its objective.
 Roles of a Project Manager:
 Makes sure the objective is clear, it is understood by
everyone on the team
 Ensures project risks are identified and contingency
plans have been created
 Verifies all work is being completed on schedule, etc
Project Management by Dr. Kahsu 15
Mebrahtu Areaya, MU,CBE, School
of Management , Department of
SKILLS AND ATTRIBUTES OF
THE PROJECT MANAGER
 Leadership ability, i.e., ability to get things done,
 Ability to anticipate problems,
 Ability to integrate the project stakeholders,
 Operational flexibility,
 Ability to negotiate and persuade,
 Understand the environment with in which the project is being
managed,
 Ability to control (i.e., monitor and evaluate performances),
 Ability to manage with in an environment of constant change,
 Ability to keep the client happy (satisfied), etc.

Project Management by Dr. Kahsu 16

Mebrahtu Areaya, MU,CBE, School
of Management , Department of
PROJECT MANAGER
RESPONSIBILITIES
 Manages the project with integration across all areas.
 Engages with stakeholders.
 Develops project plan.
 Directs project resources.
 Monitors and manages the project schedule, project budget and
project risk.
 Deals with operational issues.
 Organizes steering committee meetings, including ensuring that
minute will be taken.
 Reports to the steering committee, raising strategic issues.
 Prepares project status reports
 Ensures project meets requirements and objectives.
 Manages project team members.
Project Management by Dr. Kahsu 17
Mebrahtu Areaya, MU,CBE, School
of Management , Department of
… PROJECT MANAGER
RESPONSIBILITIES
 Negotiates and resolves issues as they arise across areas of
the project and where they impact on other activities,
systems and projects.
 Looks after the interests of the project team.
 Organizes and chairs project reference group meetings, as
appropriate.
 Communicates project status to project sponsor, all team
members, and other relevant stakeholders and involved
parties.
 Maintains project documentation.
Project Management by Dr. Kahsu 18
Mebrahtu Areaya, MU,CBE, School
of Management , Department of
Thank You !!!