This document discusses key concepts in project management. It defines a project as a temporary endeavor undertaken to create a unique product or service. Projects have specific objectives that must be completed with limited resources and within a set time frame. A project involves coordinating various activities from start to finish. Stakeholders are also discussed, including identifying relevant stakeholders and how they can positively or negatively impact a project. Managing stakeholder expectations is important for project success. Finally, the triple constraints of project management are introduced - balancing the constraints of time, cost, and scope to achieve quality.

1. PROJECT PLANNING &
MANAGEMENT:
GOLLIS UNIVERSITY
FACULTY OF BUSINESS ADMINISTRATION &
ECONOMICS
SEMESTER SIX
MR. DAUDA W.
JAMADA

2. CHAPTER 2:
CONCEPTS, DEFINITIONS & NATURE OF
PROJECTS:
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3. WHAT IS A PROJECT?
 “A project is a problem scheduled for solution.”
 Problem refers to the gap between where you are
and where you want to be, with an obstacle that
prevents easy movement to close the gap.
Projects are a group of activities that have to be
performed with limited resources to yield specific
objectives, in a specific time, and in a specific
locality. Thus, a project is a temporary
endeavor employed to create a unique
product, service or results.
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4.  Projects are an investment on which resources
are used to create assets that will produce
benefits over an expanded period of time. It is
a 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.
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5. Short Range Projects:
 They are completed within one year, and are
focused towards achieving the tactical
objectives. They are less rigorous; require less
or no risk. They are not cross functional.
These projects require limited Project
Management tools, and have low level of
sophistication. It is easy to obtain approval,
funding and organizational support for short
range projects.
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6. Long Range Projects:
 These projects involve higher risk and a
proper feasibility analysis is essential before
starting such projects. They are most often
cross functional. Their major impact is over
long period of time, on internal as well as
external organization. Large numbers of
resources are required to undertake long
range projects and they require breakthrough
initiatives from the members.
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7. Why are Projects initiated?
Projects are initiated in the following scenarios:
 When starting a new business.
 In order to develop/ modify a product or service.
 For relocating and/or closing a facility.
 For regulatory mandate.
 For some community issues.
 In order to re-engineer the process so as to reduce
complaints, reduce cycle time, and eliminate errors.
 For implementing a new system or process.
 To introduce new equipment, tools or techniques.
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8. Characteristics of Projects:
 Projects are temporary with a definite beginning
and a definite end.
 They also have temporary opportunities and
temporary teams.
 Projects are terminated when the objectives are
achieved, or conversely, if the objectives cannot
be met.
 They involve multiple resources (human and non-
human) and require close coordination.
 They are composed of interdependent activities.
 At the end of the project, a unique product,
service or result is created.
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9. Cont…
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 Projects encompass complex activities that are not simple,
and may require repetitive acts.
 They also include some connected activities. Some order
and sequence is required in project activities. The output
from one activity is an input to another.
 Project Management lives in the world of conflict. The
management has to compete with functional departments for
―resources and personnel.
 There exists a constant conflict for project resources and for
leadership roles in solving project problems.
 In every project, clients want changes, and the parent
organization aims at maximization of profits.
 There can be two bosses at a time and that too with different
priorities and objectives.

10. The Project Environment:
All projects are planned and implemented in a social,
economic, environmental, political and international
context.
 Cultural and Social Environment is that how a
project affects the people and how they affect the
project. This requires understanding of economic,
demographic, ethical, ethnic, religious and cultural
sensitivity issues.
 International and Political Environment refers to the
knowledge of international, national, regional or local
laws and customs, time zone differences,
teleconferencing facilities, level of use of technology,
national holidays, travel means and logistic
requirements.
 Physical Environment is the knowledge about
local ecology and physical geography that could affect
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11. Project Participants:
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12. Stakeholders:
 Stakeholders are the ones who have a share,
or an interest in an enterprise. Stakeholders in
a company may include shareholders,
directors, management, suppliers,
government, employees, customers, and the
community. Stakeholders are influenced by
the outcomes and objectives. They have
varying level of responsibility and authority.
Thus, they should not be ignored. A project
manager should try to manage and fulfill
the expectations of the stakeholders.
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13. Cont…
 Project stakeholders are individuals and
organizations that are actively involved in
the project, or whose interests may be
affected as a result of project execution or
project completion. They may also exert
influence over the project’s objectives and
outcomes. The project management team
must identify the stakeholders, determine their
requirements and expectations, and, to the
extent possible, manage their influence in
relation to the requirements to ensure a
successful project.
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14. Cont…
 Stakeholders may have a positive or negative
influence on a project. Positive stakeholders
are those who would normally benefit from a
successful outcome from the project, while
negative stakeholders are those who see
negative outcomes from the project’s success.
(For example see in the Lecture Book)
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15. Key Stakeholders include:
 Project Manager:
 Customers, End Users:
 Performing Organization:
 Project Management Team
 Project Team Members:
 Sponsors:
 Influencers:
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16. Relevant stakeholders:
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17. Projects & Strategic
Planning:
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 Projects are the means of achieving organization’s
strategic plans. Following are the strategic
considerations that have to be kept in mind while
planning for projects:
 The market demand (e.g. a new refinery/factory).
 Organizational needs (e.g. a university offers new
courses for revenue generation).
 Customer’s requests (e.g. an Internet Service
Provider ISP provider lunches DSL-Digital Subscriber
Line).
 Technological demand (e.g. new video games, new
cell phones with advance features).
 Legal requirements (e.g. child labor control project,
toxic waste disposal center).

18. Sub Projects:
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 Projects are frequently divided into more
manageable components or sub projects.
Individual sub projects are also a project and
are managed as such. They can be sub
contracted or out sourced.

19. Triple Constraints of Project
Management:
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 Meeting stakeholder needs and expectations
involves balancing competing demands
among cost, quality, scope, and time.
Q = f (T, C, S)
 Where Q is Quality, S is Scope and T is
Time.
 Project quality is affected by balancing
these three factors.
 Projects fail when:
 Estimates are faulty
 Time, talent and resources are insufficient or incorrectly
applied

20. Project Types:
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 Type I Projects – Large Engineering Projects:
 They have well defined project methods and end project
requirements, such as construction projects.
 Type II Projects – Product Development Projects e.g. Early
Space Projects:
 They have poorly defined project methods but have well defined
project end requirements.
 Type III Projects – Software Development Projects:
 In these, the shape of end product proceeds. They have well defined
project methods, but poorly defined project end requirements.
 Type IV Projects – Organizational Development Projects e.g.
Vision Definition and Assessment of Impact of Trainings:
 They have both poorly defined project methods as well as project
end requirements.

21. Figure 2.6: Why are systems
necessary?
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22. GOLLIS UNIVERSITY BURAO CAMPUS SOMALILAND
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 Figure 2.6 shows how many companies are
structured. There are always "class or prestige"
gaps between various levels of management.
There are also functional gaps between working
units of the organization. If we superimpose the
management gaps on top of the functional gaps,
we find that companies are made up of small
operational islands that refuse to communicate
with one another for fear that giving up information
may strengthen their opponents.

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 The project manager's responsibility is to get
these islands to communicate cross-functionally
toward common goals and objectives.

24. REVIEW QUESTIONS:
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 Define a project.
 Explain the different types of Projects that you
know.
 Analyze the reasons why projects are initiated.
 Discuss the Triple Constraints of Project
Management.
 With examples, explain the concept of Project
Participants or Stakeholders.
 Explain at least five characteristics of a project.

25. GOLLIS UNIVERSITY BURAO CAMPUS SOMALILAND
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END