UNIT 1- INTRODUCTION TO PROJECT AND PROJECT LIFE CYCLE

What is Project?

A project is a temporary endeavor undertaken to perform a unique group

of tasks designed to attain a specific pre defined objective through the use
of a variety of resources in a dynamic environment.
It is accomplished by performing a set of interrelated activities over a fixed
period within resource constraints.
It is specific, timely, usually multidisciplinary
A project is defined as a group of interrelated activities that have a specific
scope, schedule and budget. It is done to achieve a pre-defined goal of a
company.
By Harrison- A project is a non routine, non repetitive, one time
undertaking, with discrete time and technical and financial performance
goals

WHAT IS NOT A PROJECT

If activities are already undergoing then for any intermediate work it

cannot be called as a project.
Regular maintenance or up gradation of work.

TYPES OF PROJECTS-

1. TEMPORARAY PROJECT- It is a defined scope, resource, determined

beginning and end project.
2. UNIQUE PROJECT- It is one of its kind , specific goal project.

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 DIFFERENCE BETWEEN PROJECTS AND OPERATIONS-

PROJECT OPERATIONS
1. Setting up a car manufacturing plant. 1. Manufacturing Cars

2. UNIQUE, Temporary. 2. Repetitive, Continuous

WHAT IS NOT A PROJECT-

If activities are already ongoing then for any intermediate work it cannot be
called as a project.
Regular maintenance, rectification or up gradation of work .

CLASSIFIACTION OF PROJECTS ( TAXONOMY OF

PROJECTS)
I.CLASSIFICATION ON THE BASIS OF TYPE OF WORK
Industrial Projects Decreasing Production Time
Infrastructural Projects Metro Service
Building Projects - Township
Irrigation Projects Expansion of Dam horizon
Educational Projects E learning
Health care Projects Dengue Eradication
IT Projects Software Development
Bank Projects - Cash Free India/ Demonetization.

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II. CLASSIFIACTION ON THE BASIS OF PROJECT COMPLETION
TIME
Long Duration Projects ( > 5 years)
Medium Duration ( 3- 5 yrs)
Short Duration ( 1-3 Yrs)
Special Short Duration (< 1 yr)

III. CLASSIFICATION ON THE BASIS OF PROJECT VALUE

Mega value projects ( > 1000 cr)
Large Value ( 100 to 100 Cr)
Medium Value ( 1 to 100 Cr)
Small Value ( < 1 Cr)

IV. CLASSIFICATION ON THE BASIS OF OWNERSHIP

Private sector
Public sector
Joint sector ( Public + Private )
Govt. Sector

V. CLASSIFICATION BASED ON PACE OF WORK

Normal Track Projects ( Follow sequential stages)
Fast Track Projects ( Overlapping of stages, starts execution before planning
is completed ) ( Follow Agile Project Management
Technique)(IT/Construction projects)
Fast track projects are completed in less time than the normal tracks using
different techniques like (fast tracking i.e. multiple activities in parallel) and
( Activity crashing i.e. activities are serially performed but resources are
increased).

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 Virtual Project

Due to globalization , members operate in different countries and different time

zones, each bringing a unique set of talents to the project. These are known as
virtual projects because the team members may never physically meet before the
team is disbanded and another team reconstituted.

QUASI-PROJECTS

When the project objectives are not well understood, time deadlines
unknown, and/or budgets undetermined.
This ill-defined type of project is known as Quasi Project.
It is extremely difficult to conduct.
They possess artificial due date and budget, and then specifying project
objectives to meet those limits.
However, new tools for these quasi-projects are now being developed-
prototyping, phase-gating, and othersto help these projects achieve
results that satisfy the customer in spite of the unknowns.

PROJECT LIFE CYCLE

It shows how a project can be sub divided into a number of phases in a

sequential manner within the whole project time line.
Every project has certain phases of development, the understanding of
these will help to execute and control the project more efficiently.
The no of phases in a project may differ from project to project ,however in
general there are main four phases-

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Phase-I Feasibility/Appraisal/ Conception
Phase-II Design/Planning and scheduling / Development
Phase-III Implementation / Execution/Production
Phase-IV Commissioning/Termination/ Transfer

PEOPLE INVOLVED IN PROJECT

1. PROJECT SPONSOR

He is the one who translates the business case into project

objectives. Sponsor also develops the business case by himself to
address corporate requirements and corporate vision and values.
Generally, Project sponsor is also the financer of the project and
the prime motivator behind the project idea

2. PROJECT MANAGER

He is the single point authority , responsible for executing

the project and producing all its deliverables.
He heads the project management team and is the guiding
force behind planning, scheduling, executing and
completing the project.
He is appointed immediately after a go decision has been
taken regarding the project by the top management.
ROLES OF PROJECT MANAGER-
a) Scope Management
b) Time Management
c) Cost Benefit
d) Quality Management
e) Human Resource Management
f) Procurement Management
g) Communications Management
h) Risk Management

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 i) Integration Management
j) Stake holder management
k) Setting Project organization structure
l) Develop plan, strategy and control system.

HALO EFFECT- Halo effect is the assumption that because the person is good at
qualifications/technical skills then he will prove to be a good project manager.
However it may not happen in reality.

3. PROJECT TEAM
Project administration is carried out by the project team which is headed by
the project manager. Project team sits in the Project Management Office
( PMO).

ADVANTAGES OF ESTABLISHING PROJECT MANAGER OFFICES (PMO)-

It reduces the risk of failure of project

Delivers project within specified project budget.
Improves productivity or efficiency.
Delivers project within specified time.
Achieves cost saving
Develops confidence of client.

4. PROJECT STAKEHOLDERS
All the parties which have something to do with the project are its
stakeholders.
PROGRAM N PORTFOLIO MANAGER/ FINANCIAL INSTITUTIONS & BANKS/
BENEFICIARIES/ CLIENT/VENDORS& SUPPLIERS/TOP MANAGEMENT/
CONSULTANT & ADVISORS/ PROJECT SPONSER/GOVT
DEPARTMENTS/PROJECT TEAM/PROJECT MANAGER/FUNCTIONAL
MANAGERS.

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 DOCUMENTS INVOLVED IN PROJECT

1. Business Case Document (BCD)

The development of a strategy to tap into the opportunities
keeping multiple alternatives in mind is called business case.
It translates the corporate requirements and corporate vision
into a workable strategy for that project.
Business case is formally contained in Business case document.

2. PROJECT CHARTER
It is specific to initiation process.
It is the first document in a life of a project after the project is
decided to be initiated
It is the translation of business case into project objectives.
The purpose of the project charter is to document:
a) Project Scope (outcome of the project)
b) Reasons for undertaking the project
c) Objectives and constraints of the project
d) Directions concerning the solution
e) Identities of the main stakeholders
f) Target project benefits

It is a contract signed between project sponsor and key

stakeholders and project team.
It is an important document in which objectives of proposed
projects /business are laid down for any organization.

3. STATEMENT OF WORK
SOW is generally given by the client to the company and has the
details of project work in terms of the deliverables of product
service, quality and results.
It defines project-specific activities, deliverables and timelines for
a vendor providing services to the client.

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 The SOW typically also includes detailed requirements and
pricing, with standard regulatory and governance terms and
conditions.

Detailed project report

The output of design phase is called Detailed Project Report (DPR)
Detailed project report is a complete document for investment decision-
making, approval, planning whereas feasibility study report is a base
document for investment decision-making.
Detailed project report is base document for planning the project and
implementing the project.
Preparation of detailed project report is a step in firming up the proposal. It
includes:

Examination of technological parameters.

Description of the technology to be used.
Broad technical specification.
Evaluation of the existing resources.
Schedule plan.
General layout.
Volume of work.
Hence these reports are to be made before investment is made into project. Thus
formulation of investment is based on the studies made. These can be considered
as pre-investment decision.

Detailed project report is prepared not only for the investment decision-
making approval, but also execution of the project and also preparation of
the plan.
Detailed project report additionally includes contents of Feasibility study
reports:
a) Project description.
b) Planning and implementation of the project.
c) Specifications. D) Layouts and flow diagrams.