ADU
MASTERS OF BUSINESS
ADMINISTRATION (MBA)
PROJECT ANALYSIS
AND MANAGEMENT
BY
ALEMAYEHU SHIFERAW (PhD)
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PART 1
PROJECT MANAGEMENT
OVERVIEW
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Most large-scale programs or projects do not succeed,
mainly driven by inadequate governance and poor planning
Large Programs/Projects Success Rates
Successful
16%
53%
31%
Cancelled
Under Perform
Source: Standish Group International, Survey from 2500 personnel attending project management training
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Why Projects / Programs Fail
Others
Poor Organization
Technical Problems and Project
Management
Problems with Suppliers Practices
Insufficient Project Personnel
Resources
Ineffective Project Planning
Poorly Defined or Missing
Project Objectives
Source: Standish Group International, Survey from 2500 personnel attending project management
training
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Why Conduct project analysis
• To stop bad projects
• To prevent good projects from being destroyed
• To determine if components of projects are consistent
• To assess the sources and magnitudes of risks
• To determine how to reduce risks and efficiently share risks
Impact
• A proper analysis will cause the project to be redesigned
so that it is less likely to fail
• Poorly prepared projects have 16 times as high a
probability of failure within 5 years as compared to well-
prepared projects
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1.1.Concepts of a Project
⚫ A project is a temporary endeavor
undertaken to create a unique product,
service or result (PMI, 2008)
⚫ A project is a series of activities aimed at
achieving specified objectives within a
defined time period and with a defined
budget (EU, 2002)
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Comprehensive Definition
❑ Project is a temporary endeavor
involving a connected sequence of
activities and a range of resources,
which is designed to achieve a specific
and unique outcome, which operates
within time, scope, cost and quality
constraints and which is often used to
introduce change (Lake, 1997).
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Key concepts:
⚫ Purpose-the basic reason for the existence of a
project- to solve a problem, address a need or
take the advantage of opportunity.
⚫ Temporary: means that a project is something
that has a specific start date and a specific end
date.
⚫ Sequences of Activities: the works and the
steps we perform and the methods and
knowledge we use to achieve the project
8 objective.
Key concepts: (Cont’d…)
⚫ Resources: A project utilizes a variety of resources
[human, financial, material, information, etc] to carry out
the activities or tasks.
⚫ Unique Outcome: A project brings about a unique
product or service - something that has not existed
in the organization here-to-fore.
⚫ Scope- the extent of the problem or opportunity that
the project needs to address.
⚫ Organization: is vital to coordinate resources to
achieve the project objectives- organizations can be
public, private or NGOs.
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Key concepts: (Cont’d…)
⚫ Time: any project should be time bounded-it
has a start and end time
⚫ Cost: activities consume human, financial and
material resources.
⚫ Quality: the project needs to produce quality
products to maximize the satisfaction of the
users.
⚫ Introduce change: A project is often used as
an instrument for change - change for the
10 betterment of the society.
Key concepts: (Cont’d…)
⚫ Projects range in size, scope, cost
and time from mega international
projects costing millions of dollars
over many years to small domestic
projects with a low budget taking
just a few hours to complete.
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Characteristics of Projects
⚫ Projects are unique and non-repetitive
⚫ Projects are composed of interdependent activities
⚫ Projects have a clear start and finish time
⚫ projects have a life cycle [a beginning and an end,
with a number of distinct phases in between]
⚫ Projects create a quality deliverables
⚫ Projects are bound in terms of resources (both human
and non-human)
⚫ A project involves risk and uncertainty
12 ⚫ A project requires team-work.
Examples of typical projects are
Personal projects: Business projects:
• obtain an MBA • develop a new course
• write a report • develop a new product
• plan a wedding • develop a computer system
• plant a garden • introduce a new product
• build a house extension • prepare an annual report
Industrial projects: • set up a new office
• construct a building Public investment projects:
• provide a gas supply to • Education
an industrial estate • Health
• build a motorway • Waste disposal
• design a new car • Roads
• Electricity
13 • Telecommunication etc..
Projects Vs Operations
❑ Organizations perform two types of work:
project work and operational work
⚫ Operations are ongoing and repetitive while
projects are temporary and unique.
⚫ The purpose of a project is to attain its
objective and then terminate whereas the
objective of an ongoing operation is to sustain
the business.
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Feature Projects Operations
Purpose Attain objectives and Sustain the
terminate organization
Time Temporary Ongoing
Unique product, service, or Non-unique product,
Outcome result service, or result
Key Differences
Dynamic, temporary teams Functional teams
formed to meet project generally aligned
People
needs with organizational
Generally not aligned with structure
organizational structure
Varies by organizational Generally formal,
Authority structure direct line of
of
Manager
Generally minimal, if any, authority
15 direct line authority
Projects Vs Operations (Cont’d…)
⚫ Planning is defined as the process of
determining organizational goals and the
courses of actions for attaining these goals.
⚫ What ? goals
⚫ When? time
⚫ How ? Method
⚫ The how? of the plan can be answered
through programs and projects
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Projects Vs Operations (Cont’d…)
⚫ Projects exist as components in broader
developmental plans, their identification,
formulation and implementation should be
linked to short, medium and long term national
development plans.
⚫ Sound development plans require good
projects, just as good projects require sound
planning. The two are interdependent.
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Project Vs Program
⚫ A program is an assortment of
related/associated projects that are managed
together to achieve a number of objectives.
⚫ Programs may also contain elements of ongoing
operations. Since programs comprise multiple
projects, they are larger in scope than a single
project.
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Project Program
Narrow in scope Wide in scope; can comprise
many projects as components
Differences
.
Specific and detail Comprehensive and general
More precise and accurate in Broader goal related to
its objectives and features sectoral policy
Possible to calculate the Difficult to calculate costs
costs and returns and returns
• Have purpose/ objectives
Similarities
• Require input (financial, manpower, material)
• Generate output (goods and/or services)
• Operate over space and time
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Defining Project Management
⚫ Project management is the process of planning,
controlling and directing a project from its
inception to its completion, in a given time, at
given cost, and for a given purpose. According
to PMBOK,
⚫ Project management is the application of
knowledge, skills, tools and techniques to
project activities in order to meet project
requirements [PMI, 2008].
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Defining Project Management (Cont’d…)
⚫ Project requirements- refer to the whole
purpose of the project –this could be to solve a
problem, address a need, or take advantage of
an opportunity.
⚫ Knowledge- refers to as acquiring an
understanding of the body of knowledge in
nine areas: integration, scope, time, cost,
quality, contract, resources, communication
and risks.
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Defining Project Management (Cont’d…)
⚫ Skills – an ability or aptitude to perform
something well
⚫ Tools and techniques- tools refer to PM
templates and checklists to follow, and
techniques describe how to use the tools or
procedures to accomplish a specific activity
or task.
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Why deal with projects and Project
management
❖Resources are scarce both in the private and the public sector.
❖Therefore all involved in decision making are concerned with
securing value for money from every investment.
❖The profitability of public sector investment is not an equitable
way of measuring the worth of projects. For example if a road is
tolled it may generate profit, whereas a hospital may not.
Therefore governments need a method to valuing the benefits of
an investment which may not have easily defined monetary
value.
➢ To eliminate uncertainties
➢ To increase the effectiveness and efficiency of operations
➢ To identify and work towards a common goal
23 ➢ To establish a means for monitoring and control
Why deal with projects and Project
management (Cont’d…)
❖ Project Management is a set of principles, practices,
and techniques applied to lead project teams and
control project schedule, cost, and performance risks
to result in delighted customers. A successful project
is one which:
❑ Must be completed on time;
❑ Must be accomplished within the budgeted cost;
❑ Performs to a technical/performance standard
which satisfies the end user.
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Project application areas
⚫Engineering and construction
➢ The projects are concerned with producing a clear
physical output, such as roads, bridges or buildings.
The requirements of a project team are well defined
in terms of skills and background, as are the main
procedures that have to be undergone.
➢ Most of the problems which may confront the project
team are likely to have occurred before and therefore
their solution may be based upon past experiences.
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Project application areas
⚫Introduction of new systems
➢ These projects would include computerisation projects
and the introduction of new systems and procedures
including financial systems.
➢ The nature and constitution of a project team may vary
with the subject of the project, as different skills may
be required and different end-users may be involved.
➢ Major projects involving a systems analysis approach
may incorporate clearly defined procedures within an
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Project application areas
⚫Responding to deadlines and change
➢ An example of responding to a deadline is the
preparation of an annual report by a specified date.
➢ An increasing number of projects are concerned with
designing organisational or environmental changes,
involving developing new products and services.
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Responsibilities of the Project Manager
❖ To plan thoroughly all aspects of the project, soliciting
the active involvement of all functional areas involved, in
order to obtain and maintain a realistic plan that satisfies
their commitment for performance.
❖ To control the organization of manpower needed by the
project.
❖ To control the basic technical definition of the project,
ensuring that "technical" versus "cost" trade-offs
determine the specific areas where optimisation is
necessary.
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Responsibilities of the Project Manager
❖ To lead the people and organizations assigned to the project at
any given point in time. Strong positive leadership must be
exercised in order to keep the many disparate elements moving
in the same direction in a co-operative.
❖ To monitor performance, costs and efficiency of all elements
of the project and the project as a whole, exercising judgement
and leadership in determining the causes of problems and
facilitating solutions.
❖ To complete the project on schedule and within costs, these
being the overall standard by which performance of the project
manager is evaluated.
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Project Vs General management
⚫ General management is a broad subject
dealing with every aspect of managing an
ongoing activity.
⚫ Project management is a carefully planned
and organized effort to accomplish a specific
objective in relatively short period of time. For
example, construct a building; construct
roads, implement a new computer system,
preparing a new curriculum, etc.
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Project Vs General management
⚫ General management provides the foundation
for building project management skills and is
often essential for the project manager.
⚫ A project, which is unique and temporary,
requires different management disciplines.
⚫ Project management is a method for getting
something done, whereas general management
is a method for keeping things going.
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Thank you
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