Introduction to Project Management

• What is a Project?
• Why is Project Management Important?
• The Growth of Project Management
• Ethical Guidelines in Project Management
• Project Management in Pakistan

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What is a Project?

A project is a structured plan aimed at solving a specific prob-

lem. – J.M. Juran

Definition: A problem represents the gap between your current

situation and your desired goal, with challenges in the way.

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Historical Projects
• Alexandria Lighthouse: Completed in the 3rd century BC after
12 years of labor.
• Ajanta Caves, India: Buddhist cave temples constructed in the
1st and 2nd centuries BC.
• Pyramids of Egypt: 138 pyramids built primarily as royal tombs.
• Taj Mahal: Built between 1631 and 1653, employing over 22,000
workers and 1,000 elephants.
• Shalimar Garden: A 16th-century architectural marvel created
under Shah Jehan.
• Mosques and Forts: Significant historical construction projects.

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Definition of a Project

A project is a temporary and organized effort designed to create

a unique product or service.

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Project Statement

A project statement outlines key details, including:

• Purpose or objective
• Estimated cost
• Timeline or duration
• The client or end user

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Types of Projects
Various types of projects support broader plans and programs,
including:

• Pilot Projects: Test feasibility before scaling.

• Research Projects: Investigate and solve problems through
data.
• Investment Projects: Assess financial viability.
• Technical Cooperation Projects: Address gaps in technical
knowledge.
• Institution Building Projects: Develop key institutions like
universities or research centers.

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Project Sources

Projects are often initiated based on regional or national needs. They

can come from various sources, including federal, provincial, and
local governments, or international organizations like the IMF, World
Bank, and UNESCO.

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Classification of Projects
Projects are classified into two broad categories: Social Sector and
Infrastructure.

• Transportation: Highways, mass transit, airports

• Utilities: Electricity, gas, telecommunication
• Education: Schools, colleges, HEC-funded institutions
• Public Safety: Police, fire departments, National Guard
• Recreation: Parks, playgrounds, and heritage sites
• Development: Harbors, dams, irrigation
• Research: Health, space exploration, agriculture
• Defense: Military systems and equipment
• Conservation: Environmental protection and sustainability

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Project Management & Strategic Planning

• Project management plays a crucial role in achieving

organizational strategic objectives, including:

• Market Demand: Example: An oil company commissions a

refinery to meet kerosene shortages.
• Customer Requests: Example: A power company builds a new
plant to meet customer demand.
• Technological Needs: Example: Developing a new video game
to meet market trends.
• Legal Requirements: Example: Establishing a toxic waste
disposal center.

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Project Phases

• The project life cycle is divided into distinct phases:

• Initiation: Identifying and defining the project.

• Planning: Outlining the roadmap, timeline, and resources.
• Execution: Implementing the project plan.
• Monitoring: Tracking progress and making adjustments.
• Closure: Completing the project and delivering the final
product.

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The Project Environment

Projects operate within broader social, economic, and environmental

contexts, which influence both their planning and execution.

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Project Environment
1. Cultural & Social Environment: Projects impact people, and
people influence projects. It’s essential to consider factors like
economic conditions, demographics, ethics, and cultural or
religious influences.
2. International & Political Environment: A project must comply
with local, national, and international laws and customs. Key
factors such as time zones, national holidays, and logistical
considerations must be taken into account.
3. Physical Environment: The local geography, ecology, and
physical conditions can both impact the project and be impacted
by the project’s activities.

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Sub-Projects

Projects are often divided into smaller, more manageable

sub-projects, which can be treated as independent projects. These
sub-projects may be subcontracted or outsourced depending on
needs, such as:

• By Human Resources: Plumbing in construction projects.

• By Project Phases: Architectural design.
• By Specialized Technology: Automated testing for software.

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Relationship of Project Objectives

The cost of a project is influenced by three main factors:

performance, scope, and time. As performance and scope increase,
the cost tends to rise, although not always in a linear way.

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Why Projects Fail

Common reasons for project failure include:

• Inaccurate estimates
• Lack of proper application of time, talent, and resources

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The Triple Constraints in Projects

The three core constraints in any project are:

• Cost: Staying within the financial budget.

• Time: Meeting deadlines and schedules.
• Scope: Ensuring the quality and performance standards are
met.

Together, these are known as the Triple Constraints of project

management.

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Managing the Triple Constraints

Balancing cost, time, and scope requires clear communication and

agreement with the client to meet project objectives successfully.

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Impact of Scope Changes

Changes in scope can significantly impact project timelines, costs,

and quality. Effective project management ensures that stakeholder
needs are met while balancing these competing demands and
keeping the project within the agreed budget and timeframe.

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Why Project Management?

Project management is essential because it helps:

• Keep projects on time and within budget.

• Ensure efficient use of resources.
• Deliver a product or service that meets or exceeds client
expectations.

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The Cost of Project Failure

Around 66% of IT projects either fail, go over budget, or miss

deadlines. In the U.S. alone, failed IT projects lead to $55 billion in
losses each year. The consequences of these failures include:

• Decreased profitability
• Limited ability to fund future projects
• Poor customer satisfaction

Source: Chaos Chronicles 2003, The Standish Group

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Strengths of Project Management

The main goal of project management is to achieve specific

objectives. Project-based organizational structures allow project
managers to:

• Respond effectively to client and environmental changes

• Detect and resolve issues early
• Make informed decisions regarding trade-offs and conflicting
goals
• Avoid suboptimal solutions or decisions

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Limitations of Project Management

Some limitations of project management include:

• Difficulty in overcoming risks and uncertainties

• Human-related issues such as communication gaps
• Time constraints impacting deadlines
• Limited availability of resources

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Why Organizations Use Project Management

Organizations use project management practices to:

• Improve overall results and outcomes

• Add value to their products or services
• Reduce costs
• Enhance customer satisfaction
• Save time by optimizing processes

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Examples of Project Management
Examples of project management applications include:

• Developing and launching a new product or service

• Managing a political campaign
• Constructing a power plant in a remote region
• Designing compensation and benefits systems
• Negotiating collective agreements
• Setting up an e-commerce website
• Reorganizing business processes, including role redesign and
technology introduction

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Project Stakeholders

Stakeholders are the people and organizations involved in a project

or affected by its outcomes. They can influence the project’s goals
and results. Stakeholders are generally divided into:

• Positive stakeholders
• Negative stakeholders

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Project Stakeholders (Roles)

Stakeholders play various roles, such as:

• Project Manager: Oversees the project’s success.

• Customer/End User: The final user of the project’s deliverables.
• Performing Organization: Supplies resources and personnel.
• Project Management Team: Carries out project tasks.
• Sponsor: Provides financial support.
• Internal/External Stakeholders: Includes investors, contractors,
government bodies, media, etc.

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Major Project Roles

Key roles in a project include:

• Team Members: Contribute their skills to the project’s success.

• Functional Manager: Manages specific departmental activities
and resources.
• Sponsor: Prioritizes the project within the organization.
• Stakeholders: Affected by the project’s activities or outcomes.
• Project Manager: Ensures the project meets quality, timeline,
and budget requirements.

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Changing Trends in Project Management

Modern trends in project management include:

• Consensual/Participatory Management: Moving away from

hierarchical structures.
• Systems Approach: Using systems engineering to address
organizational or technical issues.
• Project-Based Work: Treating many organizational activities as
projects.

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Project Management in Pakistan

In Pakistan, project management involves:

• The Planning Commission’s role in national projects.

• Developing plans, programs, and projects.
• Generating ideas, formulating project proposals, and obtaining
approvals.
• Implementing projects, often with the aid of technology.

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Project Management: The Way Forward

Future steps in project management include:

• Conducting feasibility studies and pilot projects.

• Formulating and appraising project proposals.
• Seeking project approval.
• Implementing, evaluating, and closing projects effectively.

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Feasibility Studies & Pilot Projects

Feasibility Studies assess a project’s viability by evaluating:

• Market demand and alternatives.

• Availability of manpower and resources.
• Estimated costs and potential financial outlays.
• Social, administrative, and technological constraints.

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Project Formulation

Projects are formulated based on feasibility study findings. Common

challenges include:

• Ambitious scope or inadequate data.

• Lack of initial data, making it hard for project managers to prove
feasibility.

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Project Appraisal

• Project appraisal involves:

• Modifying original ideas to attract foreign donors.

• Evaluating administrative, managerial, and technical
capabilities.
• Scrutinizing costs (capital, operational, and recurring).
• Reviewing work schedules and financial plans.

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Project Approval

Project approval can be slow or fast, depending on various factors.

Common issues include:

• Delays in financial approval, which can stall good projects.

• Starting projects without confirmed finances, hoping funds will
become available.

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Project Implementation

Projects are implemented by a specialized team under the guidance

of a project manager, ensuring goals are met.

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Project Evaluation

Project evaluation is conducted by a designated team to assess

performance. Evaluations may occur at various stages or upon
completion.

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Common Development Project Problems

Common issues in development projects include:

• Narrow focus and disregard for alternatives.

• Overlooking people’s needs.
• Poorly trained manpower.
• Inflexibility in design and management.
• Lack of benefit transfer to target populations.
• Weak monitoring practices.

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Tasks for Project Planners

Key tasks for project planners include:

• Ensuring data accuracy.

• Developing strong monitoring capabilities.
• Avoiding reliance on external donors for guidance.
• Understanding local requirements, including religious and social
contexts.
• Aligning projects with organizational goals.

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Code of Ethics for Project Managers

Project managers should adhere to the following ethical standards:

• Responsibility: Make decisions prioritizing public safety and the

environment.
• Respect: Act professionally, understand others’ views, and avoid
disrespectful behavior.

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Ethical Standards: Respect

Ethical standards of respect include:

• Negotiating in good faith.

• Avoiding abuse of power.
• Respecting others’ property and intellectual rights.

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Starting a New Project

Key steps to start a project:

• Ensure adequate sponsorship and funding.

• Clarify the project’s scope and deliverables with the customer.
• Set realistic deadlines, including ideal and final delivery dates.

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Prioritization and Drivers

To prioritize and understand project drivers:

• Ask the customer to rank deliverables from highest to lowest

priority.
• Understand what drives the project’s deadlines and scope.
• Document and get approval on these priorities and drivers from
the customer.

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Conclusion

Project management is a vital discipline that helps organizations

meet their strategic goals. Proper planning, ethical behavior, and a
strong understanding of the project environment lead to successful
outcomes.

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