CHAPTER ONE

INTRODUCTION
 Objectives
- Meaning and definition of project
- Features of a project
- Projects, Programs and Plans
- Overview of Project Planning in Ethiopia
 1.1 Definition of Project
• It is very difficult to find-out a single and comprehensive
definition of Projects. Because every project is unique in
terms of the following:
 Nature and diversity /complexity of tasks
 Resource requirement
 Time consumed
 Benefit generated
 Process followed
 Skilled required and
 Conditions of planning and implementation
 Different meanings of project
According to Project Management Institute (PMI), ‘’ A
project is a temporary endeavor/or venture undertaken to
create a unique product or service.
• The word Temporary will signify every project has a
discrete and definable commencement and conclusion.
• Unique means the product or service is different in some
distinguishing way from all similar products or services.’’
• It does not mean that there are no similarities to other
projects, but the scope of the project, risks involved,
resources required, at a specific place, and within a certain
period; therefore, the process to produce the product or
service as well as the product or service itself is unique.
• The Charted Management Institute defines a
project as ‘’ an activity that has a beginning and an
end which is carried out to achieve a particular
purpose to set quality within given time constraints
and cost limit.’’

• Wysocki and McGary state that:

‘’ A project is a sequence of unique, complex and
connected activities having a goal or purpose and that
must be completed by a specific time, within budget,
and according to specification.’’
Cont’d…
• Gittinger has defined it as the whole gamut of activities
involved in using resources to gain benefits.

• Definition of “Project”- According to World Bank, project

can be defined as “An approval for a capital investment to
develop facilities to provide goods and services”.

• The Oxford Advanced Learner’s Encyclopedic

Dictionary defines the word project as a plan for a scheme
or undertaking.
PROJECT: is a set of proposals for the investment of
resources to create, expand and/or develop certain facilities
in order to increase the production of goods/services/ during
a certain period of time in a community, region, country,
market area and/or certain organization (firm, public
organization, NGO, etc.
 It is a complex set of activities where resources are used
in expectation of return.
 A project can alternatively be defined as “a sequence of
connected events /or a group of tasks that are
conducted/or performed over a defined and limited period
of time and are targeted towards generating a unique but
well – defined outcome”.
Cont’d…
All of us have been involved in projects, whether they be our personal
projects or in business and industry. Examples of typical projects are for
example:
Personal projects:
- obtain an undergraduate degree - plant a garden
- plan a wedding - build a house extension
Industrial projects:
- construct a building - design a new car
- build a motorway/street
Business projects:
- develop a computer system
- introduce a new product
- set up a new office
Cont’d…
Projects can be of any size and duration. They can be simple, like
planning a party, or complex like launching a new product.
Generally projects are:
• any sort of planned undertaking
• which have a defined beginning,
• multiple activities which are performed to a plan and
• Have a defined end.
Therefore a project may be defined as a means of moving from a
problem to a solution via a series of planned activities.
 Two essential features are present in every project no matter how
simple or complicated they are. In the first place, all projects must
be planned out in advance if they are to be successfully executed.
Secondly, the execution of the project must be controlled to ensure
that the desired results are achieved.
 1.2 Features of a project
Generally, all projects are characterized by a certain features which may
be common to all. Thus, the following are typical features of a project:
– A start and finish. The start may have been crystallized over a
period of time and the end may by a slow phase out. This shows
that every project has a beginning and certain definite end. It is
not like other ordinary course of business activities which are
having an indefinite term of existence – going – concern.
– A life cycle. This means that there will be a beginning and an
end, with a number of distinct phases in between.
– A budget. It is going to be unthinkable to undertake any project
without sufficient cash flows. During the planning stage
adequate budget allocation is mandatory for the smooth flow of
all project related activities.
 Cont’d…
– Non – repetitive. All project activities are essentially unique. The
project activities are rare and new. In a project, once a certain
activity is completed it would not be repeated. Generally, projects
may found to be similar but no two projects are exactly similar.

– Use of resources. In a project undertaking resources are quite

necessary for successful accomplishment of its activities. The
resources i.e. physical such as material, human, financial may be
coordinated from various sources in the expectation of future
benefits, that is, projects use resources.

– A Single Point of Responsibility. All Projects have a well

defined responsibility. In general the head or manager of the
project ultimately takes the responsibility of the project, therefore
in the project, responsibility should be specifically identifiable.
Cont’d…
– Team work.
• Projects are often carried out by a team of people who have been
assembled for that specific purpose. The activities of this team may
be co-ordinated by a project manager.
• Project teams may consist of people from different backgrounds and
different parts of the organization. In some cases project teams may
consist of people from different organizations.
• Project teams may be inter-disciplinary groups and are likely to lie
outside the normal organization hierarchies.
• The project team will be responsible for delivery of the project end
product to some sponsor within or outside the organization. The full
benefit of any project will not become available until the project has
been completed.
 1.3 Projects, programs, plan
 The terms program and project are often used interchangeably in
practice, which sometimes causes confusion.
 Programs and projects are similar in the sense that they both are
directed toward goals and require plans and resources to reach their
goals. Both use similar tools, methods, and policies.
 The differences lie primarily in scope and time horizon. A program
is a series of coordinated, related; multiple projects that continue
over extended time intended to achieve a goal/or to obtain benefits.
 A program is a higher level group of projects targeted at a common
goal. Furthermore, programs often involve a series of repetitive or
cyclical undertakings. The classic example is the U.S. space
program to place a space station on the moon to serve as a
springboard to other space explorations.
• Programs and projects are:
 Often used interchangeably but are not one and the same
 A project is narrower than a program in terms of technical
performance, time and resources (scope).
 A program may consist of more than one project.

Program Project
Scope/Objectivities Wide/diverse Narrower/limited
Location Diffused/wide Specific
Life time Non-time bound Time bound
Resources Larger budget Limited budget
 Plan
 is the written explanation of goals, objectives, targets and
means to achieve it.
 is a type of action consciously wanted.
 is the wait and programming of future activities of the
company to achieve the objectives.
 embodies both the image of the desired and the principles on
which it is based to accomplish.
 A plan is a method of how to achieve something. It consists of
the basic actions that must be carried out to improve something
or to solve a problem. It is usually based on the available
resources (money, employees, equipment, facilities, supplies,
etc.) and includes smart ideas of how to use them.
 Reading Assignment

Overview of Project Planning in Ethiopia