BEDER INTERNATIONAL έΪ˰˰ΑΔ˰˰ό˰˰ϣΎ˰˰Ο

UNIVERSITY
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JAAMACADDA BEDER EE CAALAMIGA AH

Project Finance & Budgeting

Chapter 1 : Introduction to Project

 Chapter Outline
After reading this chapter, the students will be able to understand
:about
 Project and program
 Project management
 Characteristics of projects
 The stages of the project
 Program management
 Project manager
 Benefits of project
 What is Project?
• A project is a temporary endeavor undertaken to
accomplish a unique product or service.
• A project is:
– an endeavor to accomplish a specific objective
– through a unique set of interrelated tasks
– and the effective utilization of resources.
• Project - unique process, consisting of a set of coordinated
and controlled activities with start and finish dates,
undertaken to achieve an objective conforming to specific
requirements including the constraints of time, cost and
resources.
• Project :
• Converting a vision, a dream or a need to reality.
 A job that has a beginning and an end (Time)
 A specified boundaries (Scope)
 At a stated level of Performance (Quality)
 At a budget (Costs).
• Key features include:
– Identifying what is needed or to be achieved
(requirements)
– Addressing needs, concerns, and expectations
– Balancing competing constraints [scope, quality, schedule,
and budget]
• Program Defined
– A series of coordinated, related, multiple projects that continue
over an extended time and are intended to achieve a goal.
– A higher level group of projects targeted at a common goal.
• Example:
• Project: completion of a required course in introduction to
project management.
• Program: completion of all courses required for a project
planning & management major.
 Difference Between Project And Program
Project Program
Project includes all activities to A program is defined as an ongoing process
complete a given job. or ongoing operation indefinitely.

It has narrow scope and has It has broader scope and has longer
shorter duration. duration.
Project is a part of Program It is a main activity
Projects is individual activity. A program is a group of projects managed
in a coordinated way to obtain benefits not
available from managing them individually.
 Characteristics Of The Projects

Major characteristics of a projects

– Has a well-defined objective
– A sequencing of activities and phases
– Utilizes various resources
– Should have a primary sponsor and/or beneficiary
– A unique purpose or event.
– Has a defined life span with a beginning and an end.
– Has specific time, cost, and performance requirements.
– An involvement of several people on an ad-hoc basis.
 The Stages of a Project
Typically, the first few weeks of the project will consist of a small
team of people working on a Project Initiation document.
During the 'Initiation' and 'Planning' stages, Projects are divided
into Five stages:
1. Initiation.
2. Planning.
3. Execution.
4. Monitoring & Control.
5. Closure.
Each project stage is characterized by a distinct set of activities
that take the project from the first idea to its conclusion. Each
stage is of equal importance & contributes to the overall success
of the project.
 Initiating
The initiation phase is the first phase
Planning of the project. It is the phase within
which the business problem or
Executing opportunity is identified, the
Controllin solution is agreed, a project formed
g to produce the solution and a project
team appointed.
Closing
Initiating Most important phase of the project
management.
Planning
Planning is an art and science of converting a
Executing set of objectives to realization through a series
Controllin of steps executed in an organized and
g predicted way so that there will be less
requirement of changes in the plan later on.
Closing The old saying “Plan the work, Work the plan”
Initiating
The Execution  is the third phase in the project
Planning management process. In this phase, you will
build the physical project deliverables and
Executing present them to your customer for signoff. The
Execution Phase is usually the longest phase in
Controllin the project life cycle and it typically consumes
g the most energy and the most resources.
Closing
Initiating Controlling phase is undertaken during the actual
project implementation.
Planning
Project controlling is a mechanism established to
Executing determine deviations from the project base
schedule, to re-plan & reschedule during
Controlling implementation to compensate the deviations on
the basis of commissioning minima, flow of
Closing resources like finance, manpower, equipment &
application techniques.
Initiating Closing phase is the last phase of the project
which brings close out of the complete project.
Planning Whatever the project requirements are pre-defined,
during this phase the total delivery is made and it is
Executing accepted by the customer.

Controlling Maximum conflicts can arise in the project during

this phase between those who have worked to deliver
Closing the outcome (contractor) and those who are
accepting the results of the work (beneficiaries).
Level Of Activity And Overlap Of Process Groups Over Time

The project management process means planning the work

and then working the plan.
 Project And Program Management
Managing a project is called Project Management.
Project management is the application of knowledge,
skills, tools, and techniques to project activities in order to
meet project requirements.
Project management is a set of skills and methods of
planning, organizing, and managing a project from
inception to its successful completion
Program management is the co-ordinated management of
related projects, which may include related project-as-
usual activities that together achieve a beneficial change
of a strategic nature for an organisation.
• Project management is the discipline of planning, organizing
and managing resources to bring about the successful
completion of specific project goals and objectives.

Project management includes

• defining project goals,
• specifying how the goals will be accomplished,
• what resources are needed, and relating budgets and time
for completion.
 Benefits Of Projects

• Satisfied beneficiaries and funders

• Additional business
• Expansion of career opportunities
• Improving of social development
• Satisfaction of being on a winning team
• Development of Third world and Economic growth
• Improved knowledge and skills

When projects are successful, everybody WINS

 Project Management Objectives

• Coordinate the various interrelated processes of the project.

• Ensure project includes all the work required, & only the work
required, to complete the project successfully.
• Ensure that the project is completed on time & within budget.
• Ensure that the project will satisfy the needs for which it was
undertaken.
• Ensure the most effective use of the people involved with the
project.
• Promote effective communication between the project team
members & key stakeholders.
• Ensure that project risks are identified, analyzed & responded.
 Importance Of Project Management

• Better control of financial, technical, and human resources

• Less overall project cost
• Effective use of resources
• More timely project completion
• Higher quality of the final product
• Knowledge explosion
• Increased beneficiaries satisfaction and relations
• Improved productivity
 Project Management Tools & Techniques

• Project management tools and techniques assist project

managers and their teams in various aspects of project
management
• Some specific ones include
– Project Charter, scope statement, and WBS (scope)
– Gantt charts, network diagrams, critical path analysis,
critical chain scheduling (time)
– Cost estimates and earned value management (cost)

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 Who Is Project Manager?
Project manager is a Person who is responsible for the
planning, execution and closure of project; defines the low-
level requirements of the project and owns the project
schedule.
The person who has the overall responsibility for the successful
planning, execution and closure of a project. Project
managers work in the construction industry, architecture,
information technology and many different occupations that
produce a product or service.
The Project Manager manages temporary, non-repetitive
activities & frequently acts independently of the formal
organization.
 Duties Of Project Managers
Provides direction, coordination, and integration
to the project team.
Is responsible for performance and success of the project.
Gather resources for the project
Linked to the customer interface
Provides direction, coordination, and integration to the
project team
Responsible for performance and success of the project
Must induce the right people at the right time to address the
right issues and make the right decisions.
 Project Stakeholders
• Stakeholders are the people involved in or affected by
project activities
• Stakeholders include
– Project funders or donors
– Project team or implemented team and organization
– Beneficiaries or community
A project team is a team whose members usually belong to
different groups, functions & are assigned to activities for the
same project.
A team can be divided into sub-teams according to need.
Usually project teams are only used for a defined period of
time.
 Goals And Objectives Of The Project
Goals (what)
• Goals are the changes you hope to achieve as a result of
your work
• The goal of the project is a broad statement of the problem
intended to solved or what is intended to be achieved.

Objectives (How)
• Objectives are the activities you undertake and the services
you offer to bring these changes about
• These set the realistic targets to be achieved during the
project and should be ‘SMART’
 Why do people learn PM?

• To explore the latest concepts and techniques of project

management.
• To prove yourself skillful in managing projects.
• To learn a new thought process that helps organized
thinking and structured approach.
• To increase value/contribution to the organization.
• To acquire a professional Degree/Diploma recognition and
• To increase job prospects.
 Why Do organizations Use PM?
• To handle projects effectively in an organization.
• To define the project and agree with the stakeholders
• To plan and assess resource needs for the project
• To estimate project cost and make proposals
• To plan & schedule activities in a project.
• To allocate the right resource at the right time.
• To assess risk and failure points and make backup plans.
• To lead a project team effectively & communicate well
among team members.
 Reasons for project success

• On time
• On budget
• Clear goals and objectives
• Good planning
• Smart planning and people
• Skilled and experienced project managers
• Open communication
• Careful risk management
• And so on.
 Reasons for Project Failure
• Poor project management discipline
• Poor planning and Miss management
• Inadequate fund
• Lack of skills, experience and knowledge
• No linkage to the project strategy
• Wrong team members
• No risk management
• Inability to manage change
• And so on.