Project Management Fundamentals

Project Definition and Characteristics

• A project is a temporary endeavor undertaken to create a unique product or service with specific objectives.
• Projects have varying definitions, but common ones include:
  • A unique process with a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective. (ISO10006)
  • A temporary endeavor undertaken to create a unique product or service or result. (American National Standard ANSI/PMI99-001-2004)
• Despite diversities, projects share common characteristics:
  • Unique in nature
  • Have definite objectives (goals) to achieve
  • Require a set of resources
  • Have a specific time frame for completion with a definite start and finish
  • Involve risk and uncertainty
  • Require cross-functional teams and interdisciplinary approach

Project Performance Dimensions

• Three major dimensions that define project performance are:
  • Scope
  • Time
  • Resource
• These parameters are interrelated and interactive, often represented as an equilateral triangle (Figure 1).
• Any change in one dimension affects the other two.
• Successful project completion requires accomplishment of specified goals within scheduled time and budget.
• A fourth dimension, stakeholder satisfaction, is sometimes added, but can be argued to be part of the scope.

Project Life Cycle

• Every project passes through various phases of a life cycle, similar to living beings.
• There is no universal consensus on the number of phases in a project cycle.
• Understanding the life cycle is important for successful project completion as it facilitates understanding of the logical sequence of events.
• A typical project consists of four phases:
  • Conceptualization
  • Planning
  • Execution
  • Termination
• Each phase is marked by one or more deliverables, such as concept notes, feasibility reports, and evaluation reports.

Conceptualization Phase

• The conceptualization phase starts with the seed of an idea and covers:
  • Identification of the product/service
  • Pre-feasibility studies
  • Feasibility studies
  • Appraisal and approval
• The project idea is conceptualized with initial considerations of all possible alternatives for achieving project objectives.
• A proposal is developed, setting out rationale, method, estimated costs, benefits, and other details for appraisal of stakeholders.
• Feasibility dimensions are analyzed in detail after reaching a broad consensus on the proposal.