Project Management

1. Project Management Dr. R Bista NASC

2. What is Project and What is not?

3. What is Project? • A project can be considered to be any series of activities and tasks that: • Have specific objective to be completed within certain specifications. • Have defined start and end dates • Have funding limits • Consume human and nonhuman resources (Kerzner, H. 2003, Project Management, 8th ed. New York: Willy))

4. What is Project? Cont… Project may range from small infrastructure project to more complex multipart project such as integrated hydroelectric project with irrigation, power and tourism as its components. Some examples are: Melemchi Drinking Water Project, High Land Mountain Agriculture and Livelihood Project, Upper Tamakoshi Hydro Power Project, Amazon's "Octocoper" Mini- drones concept project, Google’s Driverless Car Project

5. General Project Characteristics Projects are temporary activities with a clear objectives Projects are building blocks in the design and execution of organizational strategies Projects are responsible for the newest and most improved products, services and organizational processes Projects need to be completed within constraints of technical, cost, and schedule requirements Projects are terminated upon successful completion of performance objectives.

6. Regular Operation Ongoing Repeat process or product People are homogeneous Greater certainty of performance, cost, schedule Project One shot New process or product People are heterogeneous Greater uncertainty of performance, cost, schedule Project vs Operation

7. Project as a Dream of the Organisation • Dream of www.amazon.com to modernize delivery of goods to customers • Dreams of Google to provide internet • Dream of Google to develop Self Driving Car Project • Dream of Nepal to Make Modern Second International Airport in Bara District

8. Roles of Project Projects are one of the principle means by which we change our world. Organisations compete by planning and execution of new projects Projects are the means to execute strategies of organisation Projects are the basic building blocks of development. Without successful project identification, preparation and implementation, developments plans are no more than wishes (Dennis A. Rondineli (1976), Project Management Quarterly, Vol VII (1), Projects have also been the primary instruments for grant, credit, loan and technical aid to developing countries by international agencies

9. Roles of Project • Global competition, pressure of low cost, short product life cycle, fast increasing people’s expectations are the reasons for the private organizations to adopt project management to survive and remain competitive.

10. Common Dimensions for Project Success Cost Scope Quality Time

11. Cost of not Completing in time, cost, quality

12. Plan, Program and Project Program can be defined as a framework for groping existing projects or defining new projects and focusing all the major activities required to achieve a set of major benefits There will be many programs in a plan Similarly, there will be many projects in a program For example, in an agriculture development program, there can be soil development project, seed development project, irrigation project etc. Plan Programs Projects

13. Project management • In project every things need to be done within time and budget • Management must complete all the project deliverables within quality specification • So project management is achieving successful project completion with the resources available and within time constraints.

14. Project Management Cont… • Project management involves defining project scope. • Dividing project into tasks and activities • Deciding the types of project organizations suitable for project • Selecting project manager and establishing project office • Managing Team • Managing Stakeholders • Managing Risks • Managing Outsourcing • Executing plan and monitoring performance and correcting deviation • Reporting • Completing all the project deliverables.

15. Organizing Projects • A temporary organisation is set up to implement a project. Based on the nature project, a suitable organisation type is selected. In case of large project, a dedicated team headed by project manager is suitable to implement project.

16. Project Manager (PM) • The project manager is the person responsible for achieving project objectives. He is selected to plan, organise, coordinate and control project performance. • He/She is responsible for preparing schedule and budget, select other other people, procure works, goods and services, manage conflicts and take care of routine details necessary to get the project moving and achieve project objectives.

17. Consultant in the project organisation • As project is an unique activity and needs special type of knowledge and skill, expert consultants can be a good component of project organisation. The reasons for appointing a consultant are: - to gain from the consultant's deep knowledge and rich experience - an independent consultant will view all matters in an unbiased manner. - to give full attention to the particular project as the functional experts have to manage other many regular operations.

18. Managing Team • A team is a small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable (Harvard Business School)

19. As Per Michael Jordan • The most talented basketball player of all time and six-time world champion Michael Jorden: “There are plenty of teams in every sport that have great players and never win titles. Most of the time, those players aren’t willing to sacrifice for the greater good of the team. The funny thing is, in the end, their unwillingness to sacrifice only makes individual goals more difficult to achieve. Talent wins games, but teamwork and intelligence win championships.”

20. Making the Project Team • When we have a dream, we need a team to accomplish it. • Designing a dream team • Identify necessary skills of team members • Talk to potential team members matching skill • Add key team members • Develop team members • Remove ineffective team members • Motivate Team Members for effective performance

21. Managing Stakeholders • Stakeholders are defined as all individuals or groups who are influencing / affected / involved / interested in the project and can potentially impact, either positively or negatively, its development. • Identifying stakeholders, their interests and power • Develop strategies to manage for positive results the impacts of stakeholders on the project

22. Managing Procurement • Procurement is the act of acquiring goods, works and services by projects or organizations at the best possible cost in the right quantity and quality at required time. Both government and private organizations needs to acquire various types of goods, works and services.

23. Managing schedule • Prepare time schedule • Give extra care to critical activities in order to complete them in scheduled time. • Making priorities in resource allocation to critical activities in case of resource constraints • Regular schedule monitoring and reporting • Ensuring critical activities get done on time

24. Schedule Awareness The simple way to create schedule awareness is by displaying the progress achievements and target dates at visible place to remind project team about project activity deadlines and project completion time

25. Managing Resource • To complete project in time with minimum resource, careful planning and managing of resource is necessary to deliver project results • Updating resource plan as per updated schedule and Arrangement of resource as per requirements, • Acquiring resource as per required

26. Managing Quality • We hear many news of under quality of our projects. If projects are not completed within desired/or planned quality, we can not assure that project will generate heavier benefits than costs. So managing quality means to assure project deliverable as per specification.

27. Managing Quality Cont… • Are Inputs as per requirement? • Are labour skilled as needed? • Is process as per standard? • Does project output as per specification?

28. Managing Budget • Assuring timely budget available • Making effective and efficient use of budget use of budget

29. Managing Risks • Identifying different risks during execution • Analyzing risks and making strategy to reduce risks • Executing risks reduction plans • Monitoring residual risks, identifying new risks, executing risk reduction plans and evaluating their effectiveness.

30. Project Monitoring and Control • Project monitoring is observing or checking on project activities to identify the current status of the project, identifying deviation of the project cost, schedule and quality with the plan and identifying potential problems. A project monitoring system involves determining what data to collect; how, when, and who will collect the data, analysis of the data; and reporting current progress

31. Project Cycle Projects go through similar stage on the path from origin to completion These stages are generally expressed in terms of cycles and known as project cycle There are some popular cycle practiced by Donor Agencies. World bank Project Cycle, UNIDO Project Cycle, ADB Project Cycle etc. are some examples of project cycle.

32. World Bank Project Cycle Identification Preparation Appraisal Negotiation Implementation and supervision Evaluation

33. ADB’s Project Cycle Sources:

34. The Project Cycle National and Local Level Needs Benefit M/E Project Identification Operation and Maintenance Project Preparation Project Implementation GN Founded Project Funding Donor Assisted Project Loan or Grant Negotiation & Agreement PWD part 1 Organizational Directives, Nepal Government

35. Project Cycle Identification Evaluation Pre-Feasibility Study Completion and Termination Feasibility Study Appraisal/Approval Implementation

36. Project Identification • Project identification stage is also called project conception stage. The project idea/concept is developed in the project identification stage. • So, the task is to find out potential project ideas. An entrepreneur is always looking for new business opportunities which can be materialized or a development related organisation is looking problems/needs of people that needs to be addressed.

37. Project Identification:Generation of Project ideas The project ideas can be discovered from various sources. -Needs/problems of society/scarcity of certain goods/higher price of certain goods -Unused local material/skill/resources • Evaluation of development plans/programs/policies • Success stories of other regions/countries • Study of export possibility/import substitutions etc.

38. Pre-Feasibility Study To roughly check whether the project is technically or economically feasible The idea behind the rough check is to quickly filter out those projects in order to save the costs which will occur in a more expensive feasibility study

39. Feasibility Study • Feasibility study is related to analyse the viability of the identified project to support decision making of investment. • As its name implies, it is a study to decide whether the identified project is attractive enough to go for implementation

40. Areas of Analysis in Feasibility study • Demand/ Need and Market Analysis • Technical Analysis • Management Analysis • Financial Analysis • Economic Analysis • Environmental Analysis • Social Analysis

41. Appraisal/Approval • Project appraisal involves critically examining the basic data, assumptions and methodology used in project preparation to assure project’s viability, profitability, sustainability. • In appraisal, project’s promoter takes a second look critically and carefully to assure project’s profitability • Project is evaluated to check if all the aspects of project are consistent with the requirement, is it fit with policy and strategy of organisations/sectors • Projects risks and sensitivity analysis are carried out in appraisal to check whether it is within their risk profile • Project is approved for investment

42. Project Implementation Once preparation is completed, finance is assured and design is finalized, project is forwarded for implementation. During project implementation phase, Project is put into action. Roads will be contracted and built, project activities will be started and completed, project output will be produced. So this is the investment phase of the project.

43. Outputs of Project Implementation • The output of the implementation phase is the new road, new hydropower capacity, new bridge, New hospital department, new irrigation system, Trained manpower, new product etc.

44. Factors Affecting Project Implementation • Transfer of Project Staff • Poor procurement and Contract management • Financial management problems • Political pressures • Scope changes • Local support • Regular monitoring and control etc.

45. Project Completion and Termination • Once project is completed, project organisation is closed • Project is transferred to customer • Remaining payments are cleared • Preparation of completion reports • Termination of contracts • Handover of assets • Projects are formally closed out

46. Evaluation • Evaluation can be defined as a process by which general judgments about quality, goal attainment, project/program effectiveness, impact can be determined. It can therefore be conceptualized as a review of the whole project/program in order to assess its overall value and effects.