1. Introduction of project and project management.pdf

Project Engineering
CE.....
Er. Umesh Sukamani
Khwopa College of Engineering

Course Objective
To introduce the basic knowledge on project
and project environment.
To make the students able to prepare
feasibility study report and project
proposal.
To provide the sound knowledge of project
planning, implementation and controlling.
To provide knowledge of project finance
and
To provide the concept of modern trends
and techniques of project management.

Project is a great opportunity for organizations and individuals to
achieve their business and non-business objectives more
efficiently through implementing change. Projects help us make
desired changes in an organized manner and with reduced
probability of failure.
Projects differ from other types of work (e.g. process, task,
procedure). Meanwhile, in the broadest sense a project is
defined as a specific, finite activity that produces an
observable and measurable result under certain preset
requirements.
It is an attempt to implement desired change to an environment in
a controlled way. By using projects we can plan and do our
activities, for example: build a garage, run a marketing
campaign, develop a website, organize a party, go on
vacation, graduate a university with honors, or whatever else
we may wish to do.

A Project is a temporary, unique and progressive
attempt or endeavor made to produce some kind of
a tangible or intangible result (a unique product,
service, benefit, competitive advantage, etc.)
It usually includes a series of interrelated tasks that
are planned for execution over a fixed period of
time and within certain requirements and
limitations such as cost, quality, performance,
others.

Characteristics of project:
Temporary. This key characteristic means that every project has a
finite start and a finite end. The start is the time when the project is
initiated and its concept is developed. The end is reached when all
objectives of the project have been met (or unmet if it’s obvious that the
project cannot be completed – then it’s terminated).
Unique Deliverable(s). Any project aims to produce some
deliverable(s) which can be a product, service, or some
another result. Deliverables should address a problem or need
analyzed before project start.
Progressive Elaboration. With the progress of a project, continuous
investigation and improvement become available, and all this allows
producing more accurate and comprehensive plans. This key
characteristic means that the successive iterations of planning processes
result in developing more effective solutions to progress and develop
projects.

In addition to the listed characteristics,
a conventional project is:
Purposeful as it has a rational and measurable
purchase
Logical as it has a certain life-cycle
Structured as it has interdependencies between
its tasks and activities
Conflict as it tries to solve a problem that creates
some kind of conflict
Limited by available resources
Risk as it involves an element of risk

Some examples of a project are:
 Developing a new product or service
 Constructing a building or facility
 Renovating the kitchen
 Designing a new transportation vehicle
 Acquiring a new or modified data
system
 Organizing a meeting
 Implementing a new business process

1.2. Classification of project:

Type I Projects (Large Engineering Projects)
These projects contain well defined project end requirements and
methods. Example includes construction projects.
Type II Projects (Early Space Projects, Product Development
Projects)
These projects have well defined project end requirements but have
poorly defined project methods.
Type III Projects (Software Development Projects)
The shape of the end products proceeds in these projects. Hey have
poorly defined project requirements but well defined project methods.
Type IV Projects (Organizational Development Projects)
These projects have both poorly defined project end requirements and
project methods.

On the basis of duration, following are further two types of
projects.
Short Range Projects
Long Range Projects
Short Range Projects
 Short range projects are those projects which are finished
within one year and they focus on accomplishment of the
tactical objectives.
 There are less strict which means that little risk is associated
with these projects. Short range projects are not cross
functional. They are less sophisticated and need limited
project management tools.
 It is not difficult to get approval, organizational support
and funding for short range projects.

Long Range Projects
 High level of risk is present in long range
projects and a suitable feasibility analysis is
required before beginning such project.
 Long range project are mostly cross functional
projects.
 The internal as well as external environment of
organization is influenced by these projects.
 Potential resources are needed to consider such
projects by taking effective initiatives by the
members.

1.3. Projects goals and
objective:
Goals and Objectives
Goals and objectives are statements that describe what
the project will accomplish, or the business value the
project will achieve.
Goals are high level statements that provide overall
context for what the project is trying to achieve, and
should align to business goals.
Objectives are lower level statements that describe the
specific, tangible products and deliverables that the
project will deliver.

1.3. Projects goals and objective:
Goals
Goals are high-level statements that provide the overall context for
what the project is trying to accomplish. Let’s look at an example
and some of the characteristics of a goal statement. One of the goals
of a project might be to “increase the overall satisfaction levels
for clients calling to the company helpdesk with support needs”.
Because the goal is at a high-level, it may take more than one
project to achieve. In the above example, for instance, there may
be a technology component to increasing client satisfaction. There
may also be new procedures, new training classes,
reorganization of the helpdesk department and modification of
the company rewards system. It may take many projects over a
long period of time to achieve the goal.

Generally, non-measurable: If you can measure the
achievement of your goal, it is probably at too low a
level and is probably more of an objective.
It is important to understand business and project goal
statements, even though goals are not a part of the Ten
Step Project Definition. Goals are most important from a
business perspective. The project manager needs to
understand the business goals that the project is trying to
contribute to. However, you do not need to define specific
project goals. On the other hand, objectives definitely are
important.

Objectives
Objectives are concrete statements describing what the project is
trying to achieve. The objective should be written at a lower
level, so that it can be evaluated at the conclusion of a project to
see whether it was achieved or not. Goal statements are designed
to be vague. Objectives should not be vague. A well-worded
objective will be Specific, Measurable, Attainable/Achievable,
Realistic and Time-bound (SMART).
An example of an objective statement might be to “upgrade the
helpdesk telephone system by December 31 to achieve average
client wait times of no more than two minutes”.
Note that the objective is much more concrete and specific than
the goal statement.
The objective is measurable in terms of the average client wait
times the new phone system is trying to achieve.

Objectives
We must assume that the objective is achievable and realistic.
The objective is time-bound, and should be completed by
December 31.
Objectives should refer to the deliverables of the project. In this
case, it refers to the upgrade of the telephone system. If you cannot
determine what deliverables are being created to achieve the
objective, then the objective may be written at too high a level. On
the other hand, if an objective describes the characteristics of
the deliverables, they are written at too low a level. If they
describe the features and functions, they are requirements, not
objectives.

1.4. Project Life cycle Phases
The project manager and project team have
one shared goal: to carry out the work of the
project for the purpose of meeting the
project’s objectives.

Source: Blue Oak Energy

INITIATION PHASE

INITIATION PHASE
Questions to be answered in the initiation
phase include the following:
Why this project?
Is it feasible?
Who are possible partners in this project?
What should the results be?
What are the boundaries of this project
(what is outside the scope of the project)?

INITIATION PHASE
 the project objective or need is identified; this can be a
business problem or opportunity
 A feasibility study is conducted
“can we do the project?”
“should we do the project?”
 Once the recommended solution is approved, a project is
initiated to deliver the approved solution and a project
manager is appointed.
 The major deliverables and the participating work groups are
identified, and the project team begins to take shape.
 Approval is then sought by the project manager to move onto
the detailed planning phase.

PLANNING PHASE

PLANNING PHASE
a project plan consists of the following documents:
Project Charter: It describes the project’s reasons, goals,
objectives, constraints, stakeholders, among other aspects.
Statement of Work: Defines the project’s scope, schedule,
deliverables, milestones, and tasks.
Work Breakdown Structure: Breaks down the project
scope into the project phases, subprojects, deliverables, and
work packages that lead to your final deliverable.
Project Plan: The project plan document is divided in
sections to cover the following: scope management, quality
management, risk assessment, resource management,
stakeholder management, schedule management and the
change management plan.

PLANNING PHASE
 project solution is further developed in as much detail as
possible and the steps necessary to meet the project’s
objective are planned
 The project’s tasks and resource requirements are identified,
along with the strategy for producing them referred as scope
management
 the preparation of a project budget by providing cost
estimates for the labor, equipment, and materials costs
 document a quality plan, providing quality targets,
assurance, and control measures, along with an acceptance
plan, listing the criteria to be met to gain customer
acceptance. (Risk management)
 the project would have been planned in detail and is
ready to be executed.

Project Planning Phases:
1. Create a Project Plan
2. Create a Resource Plan
3. Create a Financial Plan
4. Create a Quality Plan
5. Create a Risk Plan
6. Create a Acceptance Plan
7. Create a Communications Plan
8. Create a Procurement Plan
9. Contract the Suppliers
10.Perform a Phase Review

PLANNING PHASE
S.M.A.R.T Goals:
C.L.E.A.R. Goals:

IMPLEMENTATION (EXECUTION) PHASE

7 strategies for successful project execution
1. Leverage project management tool
The best tools on the market offer deep visibility into work status and reduce the
need for manual tracking during the execution phase.
2. Delegate tasks to get work done effectively
enable your team and build their confidence by making them responsible for a
small part of the project.
3. Empower your team to make decisions
An empowering environment is a sufficient motivator for team members that encourages
them to go above and beyond.
4. Be open to new ideas
5. Manage team communication
6. Measure progress regularly
7. Control the scope
You cannot and should not avoid all change requests. Most projects require you to iterate
and adapt to change. Market conditions, client needs, organizational priorities can change
and you need to deal with them.

 the project plan is put into motion and the work of the project is
performed
Progress is continuously monitored and appropriate
adjustments are made and recorded as variances from the
original plan
 people are carrying out the tasks, and progress information is
being reported through regular team meetings
 project sponsors and other key stakeholders should be kept
informed of the project’s status according to the agreed-on
frequency and format of communication
 all of the deliverables have been produced and the customer
has accepted the final solution
 the project is ready for closure.

CLOSING PHASE
7 steps to closing a project
1. Formally transfer all deliverables
2. Confirm project completion
3. Review all contracts and documentation
4. Release resources
– Formally release resources from the project, including suppliers, contractors, team
members, and any other partners
5. Conduct a post-mortem
6. Archive documentation
Be sure to keep clear notes on the project’s performance and improvement opportunities so you
can easily reference and implement them on similar projects in the future.
7. Celebrate
An end-of-project party is a great way to acknowledge your team’s hard work and increase
morale. Plus, a happy team is more likely to work with you in the future so you can build on your past
successes and become a more effective unit going forward.

CLOSING PHASE
releasing the final deliverables to the customer,
handing over project documentation to the
business, terminating supplier contracts, releasing
project resources, and communicating the closure of
the project to all stakeholders.
experience is transferred back to the project
organization, which will help future project teams.

1.5. Project environment:
All the projects are planned and executed in an economic, social, political,
environmental and international context.
Cultural and Social Environment
This environment includes how people are affected by the project and how they
in turn affect the project. This needs comprehension of demographic, economic,
ethnic, religious, ethical and cultural sensitivity issues.
International & Political Environment
The understanding of international, national, regional or local customs and laws is
covered in this area. Furthermore certain other factors are also included like
teleconferencing facilities, time zone differences, national holidays, level of the
technology usage and travel means & logistic requirements.
Physical Environment
The knowledge about physical geography and local ecology is included in this kind
of project environment that can influence the project or influenced by the project.

Organizations have an external and internal
environment;
1.External Environment.
2.Internal Environment.

External Environment of Organization
In a simple way factor outside or organization are
the elements of the external environment. The
organization has no control over how the
external environment elements will shape up.
The external environment can be subdivided into 2
layers:
 General Environment
 Task Environment

General Environment of Organization
 The general environment consists of factors that may have an immediate direct
effect on operations but nevertheless influences the activities of the firm.
 The dimensions of the general environment are broad and non-specific whereas
the dimensions of the task environment are composed of the specific
organization.
 the elements or dimensions of the general environment.
Economic Dimension
Technological Dimension
Socio-cultural dimension PEST
Political-Legal Dimension
International Dimension

Economic Dimension
The economic dimension of an organization is the overall status if the economic
system in which the organization operates. The important economic factors for
business are inflation, interest rates, and unemployment.
 These factors of the economy always affect the demand for products. During
inflation, the company pays more for its resources and to cover the higher costs
for it, they raise commodity prices.
 When interest rates are high, customers are less willing to borrow money and
the company itself must pay more when it borrows.
 When unemployment is high, the company is able to be very selective about
whom it hires, but customers’ buying power is low as fewer people are
working.
Technological Dimension
It denotes to the methods available for converting resources into products or
services. Managers must be careful about the technological dimension.
Investment decision must be accurate in new technologies and
they must be adaptable to them.

Socio-cultural dimension
Customs, mores, values and demographic characteristics of the society in which the organization
operates are what made up the socio-cultural dimension of the general environment.
The socio-cultural dimension must be well studied by a manager. It indicates the product, services, and
standards of conduct that the society is likely to value and appreciate. The standard of business
conduct vary from culture to culture and so does the taste and necessity of products and services.
Political-Legal Dimension
The politico-legal dimension of the general environment refers to the government law of
business, business-government relationship and the overall political and legal situation
of a country. Business laws of a country set the dos and don ts of an organization.
A good business-government relationship is essential to the economy and most importantly for the
business. And the overall situation of law implementation and justices in a country indicates that there
is a favorable situation in of business in a country.
International Dimension
Virtually every organization is affected by the international dimension. It refers to the degree to which
an organization is involved in or affected by businesses in other countries.
Global society concept has brought all the nation together and modern network of communication and
transportation technology, almost every part of the world is connected.

.
Task Environment of Organization
The task environment consists of factors that directly affect and are affected by the
organization’s operations.
A manager can identify environmental factors of specific interest rather than having to
deal with a more abstract dimension of the general environment.
The different elements of the task environment may be discussed as under:
Competitors
Customers
Suppliers
Regulators
Strategic Partners

.
1.Competitors
Policies of the organization are often influenced by the competitors.
Competitive marketplace companies are always trying to stay and go further ahead of the competitors. In the
current world economy, the competition and competitors in all respects have increased tremendously.
The positive effect of this is that the customers always have options and the overall quality of products goes
high.
2.Customers
“Satisfaction of customer”- the primary goal of every organization. The customer is who
pays money for the organization’s product or services. They are the peoples who hand them
the profit that the companies are targeting.
Managers should pay close attention to the customers’ dimension of the task environment because its
customers purchase that keeps a company alive and sound.
3.Suppliers
Suppliers are the providers of production or service materials. Dealing with suppliers is an important task of
management.
A good relationship between the organization and the suppliers is important for an organization to keep a
steady follow of quality input materials.

.
4.Regulators
Regulators are units in the task environment that have the authority to control,
regulate or influence an organization’s policies and practices.
Government agencies are the main player in the environment and interest groups are
created by its members to attempt to influence organizations as well as government.
Trade unions and chamber of commerce are the common
examples of an interest group.
5.Strategic Partners
They are the organization and individuals with whom the organization is to an
agreement or understanding for the benefit of the organization. These strategic
partners in some way influence the organization’s activities in various ways.

.
Internal Environment of Organization
Forces or conditions or surroundings within the boundary of
the organization are the elements of the internal environment
of the organization.
Owners
Board of Directors
Employees
Culture

.
Owners
Owners are people who invested in the company and have property rights and claims
on the organization. Owners can be an individual or group of person who started the
company; or who bought a share of the company in the share market.
They have the right to change the company’s policy at any time.
Board of Directors
The board of directors is the governing body of the company who are elected by
stockholders, and they are given the responsibility for overseeing a firm’s top
managers such as the general manager.
Employees
Employees or the workforce, the most important element of an organization’s
internal environment, who performs the tasks of the administration. Individual
employees and also the labor unions they join are important parts of the internal
environment.
If managed properly they can positively change the organization’s policy. But ill-
management of the workforce could lead to a catastrophic situation for the company.

.
Culture
 Organizational culture is the collective behavior of members of an
organization and the values, visions, beliefs, habits that they attach to their
actions.
 An organization’s culture plays a major role in shaping its success because
culture is an important determinant of how well their organization will
perform.
 As the foundation of the organization’s internal environment, it plays a
major role in shaping managerial behavior.
 The environment irrespective of its external or internal nature, a manager
must have a clear understanding of them. Normally, you would not go for
a walk in the rain without an umbrella, because you understand the
environment and you know when it rains you can get wet.
 Similarly, if a manager does not know and understand the environment of
the organization, he or she will definitively get wet or dry and the
organization also in today’s fast and hyper-moving organizational
environment.

1.6. Introduction to project managment
 Project Management Institute (PMI), has defined
Project Management as "the application of
knowledge, skills, tools and techniques to a
broad range of activities in order to meet the
requirements of a particular project.“
 Project management primarily focuses on
planning, managing and organizing the available
resources. Some of the activities that should be a
part of project management activity are to
efficiently guide the project team through all
phases and execute the project successfully.
Other activities include identifying and
efficiently managing the project life cycle and
implementing it to the user-centered design
process.

1.6.Introduction to project management
 Project Management Institute has identified nine key areas within
project management, and they are as follows:
 Integration Management
 Scope Management
 Time Management
 Cost Management
 Quality Management
 Human Resource Management
 Communication Management
 Risk Management
 Procurement Management

Benefits of Project Management
Project Management creates a vision for success, for
clients and teams, and gets everyone on the same
page of what’s needed to stay on track for success.
Stakeholder Benefits
Team Member Benefits
Functional Manager Benefits
Senior Manager Benefits

Stakeholder Benefits
 Better scheduling and budgeting
 Better cost containment
 Better communication throughout project including process mapping and progress
reporting
 Better change management processes including configuration management
 Better quality planning, quality assurance processes, and quality acceptance steps
 Earlier attention paid to “red flags” – project problems that may be indicators of more
trouble to come.
Team Member Benefits
 Allows the creative team the freedom to focus on the activities most aligned with their
talents and passions
 Less rework
 Better definition of work requirements
 Better understanding of roles and responsibilities
 Improved productivity of work through

Functional Manager Benefits
 Better allocation of resources
 Better communication throughout the company
 Improved work instructions
 Allows functional manager to focus on the department resource leveling, staff retention
and training, and quality processes for their specific area.
 Improved project documentation processes and expansion of the organizational retained
best practices.
Senior Manager Benefits
 Better use of company resources
 More attention to risk management
 Better project cost and schedule estimating
 Better project monitoring and control

Limitations of Project Management in Nepal
Project management concept suffers from a number of
limitations in Nepal.
Unsuitable:
Problem of Authority Delegation:
Top Management Interference:
Human Resources:
Conflicts:
Cultural Constraint:

Unsuitable: Nepal is a country of villages. Rural development projects are
important for reducing poverty in rural areas of hills and terai. Most rural projects
are small and simple. Project management concept is not suitable for such projects.
Problem of Authority Delegation: Project management concept provides total
authority and responsibility to project manager from inception to completion.
Nepalese administrative system is "Feudocratic". The institutional capacity for
project management is poor. Senior managers are unwilling to delegate authority to
project manager. This constrains effect project management.
Top Management Interference: In Nepal, project management generally lacks top
management support. Too much interference by top management in appointment
and transfer of project manager and project employees and award of contracts is
common.
Politicians look at projects as convenient vehicles for employment of their political
workers. This has led to over-staffing in projects.

Lack of Professional Human Resources: Project management requires a special
breed of trained professional human resources. They are in short supply in Nepal.
Matrix project organization structures in Nepal suffer from lack of right people. Project
managers lack independence to handpick the right people. Functional managers
generally depute their "favored ones" or "available ones" to the project. Project team
gets staffed in incompetent people.
Projects generally carry extra incentive to employees. A lot of "source and force" is used
to get posted to projects.
Conflicts: Project management in Nepal tends to be infested with conflicts between
project and functional departments. Interpersonal conflicts also abound among
project team members. Discipline is poor in projects.
Cultural Constraint: Nepalese culture generally lacks sense of the value of time.
Administrative personnel are champions for postponing important decisions for
tomorrow. This also happens in projects. The time and cost overruns due to lack of
appreciation for project schedules constrain effective project management.

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