MPM621Ch12.pptx project identification A

Harambee University
Faculty of Business & Economics
Department of Project Management
Course Name: Project Identification,
Design and Implementation
(MPM 621)
By: Ejarra Batu (PhD & PhD Scholar in Project
Management)
nanatibatu@gmail.com
Ejarra Batu (PhD) 2020

Key points to be covered
1. Origins and meanings of project
2. Project Characteristic features
3. Project life cycle
4. Project initiation/Identification/Preparation
5. Project selection
6. Project Logical Framework analysis
7. Project sustainability analysis
8. Project Implementation
Ejarra Batu (PhD) 2

Chapter One:
Origins and meanings of project
Projectshavebeendescribedas:
• "Thecuttingedge"ofdevelopment,
Projectsembody
Thepolicychoices flowingfrom developmentobjectivesand
Actsasthevehicleorthemedium ofthedescribedsocial
changes.
So,Projectsareoneoftheseveralinstrumentstoachieve
particularobjectivesin aprocessofdevelopment
Ejarra Batu (PhD) 3

4
• What is a Project?
• A project is a temporary endeavor with a
defined beginning and end (usually time-
constrained, and often constrained by
funding or deliverables), undertaken to
meet unique goals and objectives,
to bring about beneficial change or
value.
Ejarra Batu (PhD)

Cont…
Ingeneral,aprojectisaspecificactivity with specificstarting pointandspecific
endingpointintendedtoaccomplishaspecificobjectives andwith apre-
determinedinputresources.
Examplesofsomeprojects:
• Developinganewproductorservice
• Buildingabridge,road,railway, orotherstructure
• Writing asoft ware
• Installinganewmanufacturingprocess
• Publishingabook
• Developinganewmarketingplan
• ObtaininganMBAdegree
• Plantingagarden
• Aweddingplan
• Constructingahouse
• Establishingaplantordesigningacar ornewmachinery etc;
Ejarra Batu (PhD) 5

1.2. Typical characteristic features of a project:
1. Are unique in nature.
• They do not involve repetitive processes.
2. Have a defined timescale.
• Projects have a clearly specified start and
end date within which the deliverables must
be produced to meet a specified customer
requirement.
Ejarra Batu (PhD) 6

Cont…
3. Have an approved budget.
Projects are allocated a level of financial
expenditure within which the deliverables
are produced, to meet a specified customer
requirement.
4. Have limited resources.
At the start of a project an agreed amount of
labour, equipment and materials is allocated
to the project.
Ejarra Batu (PhD) 7

Cont…
5. Involve an element of risk.
Projects entail a level of uncertainty and
therefore carry business risk.
6. Achieve beneficial change.
The purpose of a project is typically to
improve an organization through the
implementation of business change.
Ejarra Batu (PhD) 8

1.3. Broad Classification of project
• Projects can be classified into two
broad groups:
1. Industrial and
2. Developmental.
• Each of these groups can be further
classified considering:
9
Ejarra Batu (PhD)

1. Industrial Projects (Commercial Projects)
Provide goods or services for meeting the growing needs of the
customers and providing attractive returns to the investors/stake
holders
Industrial project are grouped into two. Categories
1. Demand based projects
It’s designed to satisfy the customers’ felt as well the latent needs
such as:
 Complex fertilizers,
 Agro-processing infrastructure etc.
2. The resource/ supply based projects
take advantage of the available resources like:
 Land,
 Water,
 Agricultural produce,
 Raw material,
 Minerals and even
 Human resource. 10
Ejarra Batu (PhD)

Cont…
Examples of resource based projects include:
Metallurgical industries,
Oil refineries etc.
Examples of projects based on human resource
(skilled) availability include projects in:
IT sector,
others.

2. Development projects
• Development projects are undertaken to facilitate
the promotion and acceleration of overall
economic development.
• Development projects cover sectors like:
Irrigation,
Agriculture,
Infrastructure
Health and
Education.

Types and classification of projects
Projects can be categorized according to type of
activity, location, time, ownership, size and need.
1. According to Type of Activity:
Industrial projects
Non-Industrial projects
2. According to Location:
National projects are those set up in the national
boundaries of a country
International projects are set up by the government
or private sector across the globe.

3. According to Completion Time:
Normal projects
Crash projects .
4. According to Ownership:
Public sector projects
Private sector projects
Joint sector projects

5. According to Size: This depends on
investment on plant and machinery
requirements
small,
medium and
large.
6. According to Need:
New balancing,
Expansion,
Modernization,
Replacement,
Diversification,
Backward integration and
Forward integration projects.

17
Differences b/n Project, Program and
Operation
• Projects Versus Programs
• A Project Versus Operation
(Operational/Business As Usual
Activities)
Ejarra Batu (PhD)

18
Project Program
Narrow in scope Wide in scope; can comprise
many projects as components.
Specific and detail Comprehensive and general
More precise and accurate in
its objectives and features
Broader goal related to
sectoral policy
Possible to calculate the
costs and returns
Difficult to calculate costs
and returns
• Have purpose/ objectives
• Require input (financial, manpower, material)
• Generate output (goods and/or services)
• Operate over space and time
Differences
Similarities
Ejarra Batu (PhD)

19
Feature Projects Operations
Key
Differences
Purpose Attain objectives and
terminate
Sustain the
organization
Time Temporary Ongoing
Outcome
Unique product, service, or
result
Non-unique product,
service, or result
People
Dynamic, temporary teams
formed to meet project needs
Generally not aligned with
organizational structure
Functional teams
generally aligned with
organizational
structure
Authority
of
Manager
Varies by organizational
structure
Generally minimal, if any,
direct line authority
Generally formal,
direct line of authority
Ejarra Batu (PhD)

Chapter Two:
What is Project Management?
• The application of knowledge, skills, tools and techniques to
project activities to meet project requirements and objectives
• Key features include:
– Identifying what is needed or to be achieved
(requirements)
– Addressing needs, concerns, and expectations
• One of the primary jobs of a project manager is to
manage trade-offs among time, cost and
performance/scope[ex: •Can reduce time by increasing costs; or Can
reduce performance by reducing costs]
20
Ejarra Batu (PhD)

Project Constraints that Compete Attention
1. Cost is the budget approved for the project
including all necessary expenses needed to
deliver the project.
• Within organizations, project managers have to
balance between not running out of money and not
under spending because many projects receive
funds or grants that have contract clauses with a
“use it or lose it” approach to project funds.
• Poorly executed budget plans can result in a last-
minute rush to spend the allocated funds.
• For virtually all projects, cost is ultimately a limiting
constraint; few projects can go over budget
eventually requiring a corrective action.
Ejarra Batu (PhD)
21

Cont....
2. Scope is what the project is trying to achieve.
a) It entails all the work involved in delivering the
project outcomes and the processes used to
produce them.
b) It is the reason and the purpose of the project.

Cont...
3. Quality is a combination of the standards and
criteria to which the project’s products must be
delivered for them to perform effectively.
The product must perform to provide the
functionality expected, solve the identified problem,
and deliver the benefit and value expected.
It must also meet other performance requirements,
or service levels, such as availability, reliability, and
maintainability, and have acceptable finish and
polish.
Quality on a project is controlled through quality
assurance (QA), which is the process of evaluating
overall project performance on a regular basis to
provide confidence that the project will satisfy the
relevant quality standards.

Cont...
4. Resources are required to carry out the
project tasks. They can be:
people,
equipment,
facilities,
funding, or
anything else capable of definition (usually other
than labor) required for the completion of a
project activity.

Cont...
5. Time is defined as the time to complete the
project.
Time is often the most frequent project oversight
in developing projects.
This is reflected in missed deadlines and
incomplete deliverables.
Proper control of the schedule requires the careful
identification of tasks to be performed and
accurate estimations of their durations, the
sequence in which they are going to be done, and
how people and other resources are to be
allocated.
Any schedule should take into account vacations
and holidays.
Ejarra Batu (PhD)
25

Project Management Dimensions
The process of project management has two dimensions
(“science” and “art” of project mgmt):
Socio-cultural
Leadership
Problem solving
Teamwork
Negotiation
Politics
Customer expectations
Technical
Scope
WBS
Schedules
Resource allocation
Baseline budgets
Status reports
26
Ejarra Batu (PhD)

27
An overview of Project Life Cycle
• Is the stages through which the
project passes from inception to
its completion.
• Is a continuous process made up
of
–separate stages each with its own
characteristics and
–complementary stages (phases)
and each setting a ground for the
next one. Ejarra Batu (PhD)

1. Conceptualization Phase
Conception phase, starting with the seed of an idea, it
covers identification of the product / service, Pre-
feasibility, Feasibility studies and Appraisal and
Approval.
The project idea is conceptualized with initial
considerations of all possible alternatives for achieving
the project objectives.
As the idea becomes established a proposal is
developed setting out rationale, method, estimated
costs, benefits and other details for appraisal of the
stakeholders.
After reaching a broad consensus on the proposal the
feasibility dimensions are analyzed in detail.

2. Planning Phase
In this phase the project structure is planned based
on project appraisal and approvals.
Detailed plans for activity, finance, and resources are
developed and integrated to the quality parameters.
In the process major tasks need to be performed in
this phase are
• Identification of activities and their sequencing
• Time frame for execution
• Estimation and budgeting
• Staffing

3. Execution Phase
This phase of the project witnesses the
concentrated activity where the plans are put into
operation. Each activity is monitored, controlled
and coordinated to achieve project objectives.
Important activities in this phase are
• Communicating with stakeholders
• Reviewing progress
• Monitoring cost and time
• Controlling quality
• Managing changes

4. Termination Phase
This phase marks the completion of the project
wherein the agreed deliverables are installed and
project is put in to operation with arrangements
for follow-up and evaluation.

Identification  Potential projects emerge from specialists, local leaders and national development strategies.
 Identification of potential stakeholders, particularly primary stakeholders.
 Carry out problem assessment and decide upon key objectives.
 Assess alternative strategies for meeting objective.
Preparation
and Appraisal
 The technical, institutional, economic, environmental, and financial issues facing the
project studied and addressed —including whether there are alternative methods for achieving
the same objectives.
 Assessing feasibility as to whether and determining whether to carry out more advanced
planning.
 Evaluation of all of the feasibility studies to determine the ability of the project to succeed
Detailed
Planning
 The project solution is further developed in as much as detail as possible
Implementation
and
monitoring
 The project plan is implemented over a specified time period.
 Monitoring of project performance with a management information
system to enable correction of implementation problems as they arise.
Evaluation
& closure
 On-going and final assessment of the success of the project against
original objectives, to learn lessons to help improve future projects.

MPM621Ch12.pptx project identification A

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