Categorizing and Classifying Projects

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Categorizing and Classifying Projects
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Project Categories (1)

• Project can be categorized in a number of ways,
  depending on the
• organization, its mission, objectives and goals,
  and its priorities.
• Examples
• Compliance, Strategic and Operational Projects
• Products, Services and Organizational Processes
• Small, Medium and Large-Scale Projects
• Low, Medium and High-Risk Projects
• Immediate, Near and Long-term ROI projects
• Low, Medium, High as well as Mature / Immature
  technology-based projects
• Low, medium, high as well as no margin and
  loss-making projects
• Experience-based (previously undertaken, not
  undertaken or partially undertaken)
• Business Base projects (use core competencies,
  use new core competencies, do not use core
  competencies, leverage core competencies)

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Project Categories (2)

• Priority-based projects (urgency of need for
  business, customer and meeting market
  requirements)
• Size in terms of capital and human esource
  requirements, duration, geographic span (global,
  multi-country) or a combination of these
• Deliverables-based projects (product
  improvements, maintenance, restoration, upgrades
  and disposal)
• Sector-based projects (for example, law
  enforcement, crisis and emergency situations,
  legal services, political campaigning)
• Definitions-based (undefined, ill-defined,
  partially defined and fully defined projects)

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Project Management Life-Cycle
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Resources Used Project Life-Cycle
Identify need for and priority of project,
establish project goals, objectives and strategy,
gather data, determine feasibility of the
project, identify the stakeholders and potential
team, estimate resource requirement and time,
identify viable alternatives, present proposal,
obtain approval for next phase.
CONCEPT
DESIGN
IMPLEMENTATION
COMM.
Approve key team members, collect detailed
information, identify project scope and end
result, establish project master plan and
monitoring, evaluation and control system,
determine budget, cash flows and resource flows,
work breakdown structure, project activities and
schedule, set quality standards, policies and
procedures, assess project risks, confirm
justification for project, obtain approval to
proceed.
Low resource usage in the initial stage of the
project
Resource usage increases significantlywhen the
planning phase of the project commences
Resource usage drops sharply as project nears its
comple- tion
LEVEL OF EFFORT
Implement project master plan, lead and motivate
project team, resolve conflicts and problems
between stakeholders, procure project inputs,
execute work packages and project activities,
review and where appropriate approve and
implement change requests, revise project master
plan with scope, cost and time baselines as new
information is collected, ensure adherance to
quality policies and standards, conduct
performance assessments of team members, prepare
project status reports
Finalize project work, gain customer acceptance
and transfer project output, submit project
evaluation report, release resources, reassign
project team and dismantle project
infra-structure
Resource usage is highest when the project is in
its implementation phase and the project
activities are being performed
Concept Initiation
Design Development
Implementation or Construction
Commission or Handover
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Project Product Life-Cycle
Product Life-Cyle
Project Life-Cyle
Operational Life-Cyle
Pre-Project
Concept
Design
Imple-ment.
Hand-over
M
U
D
DISPOSAL
Concept
Design
PROJECTS
UPGRADE
Imple-ment.
Concept
Design
implem.
Hand-over
Hand-over
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Project Management
Project Initiation
Project Planning
Project Monitoring, Evaluation and Control
Project Implementation
Project Closure
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The Functions of Project Management
The basic functions of general management equally
apply to project management
CONTROLLING Who judges results and by what
standards?
Project Resources
PLANNING What are we aiming for and why?
DIRECTING Who decides what and when?
MOTIVATION What brings out the best in people?
ORGANIZING Whats involved and why?
David I. Cleland / Lewis R. Ireland, Project
Management Strategic Design and Implementation,
4th ed., p. 42.
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Project Management(Holistic and Methodological
Perspective)
Economic
The Organization
Financial
Organizations mission, goals, object- ives
strategies, priorities, current programme and
project portfolio, project structure forms,
resource base, infrastructure competency,
culture, policies, project- focussed knowledge,
institutional process assets
Political
PROJ ECTS
Life-Cycle Modal
Social
Regulatory
Holistic Perspective
Security
Infrastructure
Integration, Scope, Cost, Scheduling, Human
Resources, Risk, Quality, Communications,
Procurement
Knowledge Areas Process Groups
Markets
PMBOK
H-Resources
Methodological Perspective
O-Resources
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Projects in Holistic Perspective(The Economic
Dimension)
Areas of Concern and Interest
Gross Domestic Product of the economy and
(sectoral) growth trends, level of
diversification, investment and consumption,
trade and/or current account deficits, internal
and external debt, fiscal deficit, wealth
distribution, inflation, purchasing power,
currency exchange rate and appreciation and
depreciation trends over time, monetary policy.
Can you think of projects which may and may not
be initiated in Pakistan given its economic
structure and trends?
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Projects in Holistic Perspective(The Financial
Dimension)
Areas of Concern and Interest
Availability and volume of project financing from
local financial insti-tutions, development
agencies and government, emission of securities
to raise project capital on the capital market,
flotation of stocks, cost of capital, venture
capital, project guarantees and insurance,
breadth and stability of financial system.
What is your experience with raising capital for
a project from an external source or sources?
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Projects in Holistic Perspective(The Political
Dimension)
Areas of Concern and Interest
Type of the countrys political system
(democracy, dictatorship, theocracy), political
parties and agendas, system stability (fre-quency
of change), prevalence of rule of law, popular
support for extremist ideologies, propensity
towards civil strife, good gover-nance with
transparency and accountability, committment by
political parties and politicians to economic
development.
Is Pakistans politcal system stable? How does it
affect projects being undertaken in different
fields?
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Projects in Holistic Perspective(The Social
Dimension)
Areas of Concern and Interest
Trends in attitudes in society over time,
demographic composition and shifts, subcultures,
popular stance adopted towards issues of interest
and concern to the public such as environment and
rene-wable energy, cultural conside-rations in
implementing certain types of projects.
How do cultural considerations affect projects
being implemented by NGOs in NWFP and Baluchistan?
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Projects in Holistic Perspective(The Regulatory
Dimension)
Areas of Concern and Interest
Spectrum of laws and regulations which are
relevant for projects of any type, for example
labour law, land acquisition and compensation
law, contract law, construction law, procurement
law, environmental law, data protection law, tax
law, law concerning joint ventures and
public-private partnerships, law concerning the
operation of non-governmental organizations,
trade and cartell law.
Are the relevant laws being observed in the
pursuit of projects in diverse fields in Pakistan?
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Projects in Holistic Perspective(The Security
Dimension)
Areas of Concern and Interest
Threats to project and project staff from
opposing stakeholders, likeli-hood of blockages
at project sites, sabotage, threats and acts of
physical harm to, and assassina-tions of project
staff. Possibility of civil strife within
country and war with neighbouring country.
Would you advise a European company to set up a
skiing resort in remote Afghanistan?
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Projects in Holistic Perspective(The
Infrastructure Dimension)
Areas of Concern and Interest
Availability and quality of road and railway
systems, airports (domestic and international
connections), seaports (for import of project
in-puts and export of the results of a project
after its completion), office space and
equipment, telecommu-nications (landline and
cellphone networks, faxes), internet (high speed,
round the clock usability), electricity, gas, and
water, postal and courier services.
Do you think that Pakistans current
infrastructure is adequate to attract and sustain
large projects?
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Projects in Holistic Perspective(The Market
Dimension)
Areas of Concern and Interest
Size of market for goods and services and
anticipated growth or decline in demand, level of
competition in the market and anticipated trends
in competition, transaction costs, import and
export tariff structures, consumer preferences,
outsourcing oppor-tunities, access to national
and regional markets, special trading
arrangements (free trade areas, custom unions
etc.).
Name three new products that you think could be
introduced into the Pakistani market and for
which there will be a longterm demand?
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Projects in Holistic Perspective(The Human
Resources Dimension)
Areas of Concern and Interest
Availability, quantity, productivity, mobility,
qualifications, compe-tency, experience,
performance, salary and wage levels,
adapta-bility, communication and soft skills
(including teamworking), standard of
professionalism, train-ing needs and facilities,
unioniza-tion, work ethics, propensity to strike,
psyce, turnover level, over-all educational
standard, access to H-resources from other
countries.
Would Intel Corporation set up a factory in
Gujranwala to produce its next generation of
computer chips?
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Projects in Holistic Perspective(The All Other
Resources Dimension)
Areas of Concern and Interest
Availability, quantity, quality and cost of all
resources other than human resources which are
required to undertake projects successfully
(achieving its goal on time and on budget to the
satisfaction of all key stakeholders involved).
All sorts of inputs ranging from raw inputs to
nuts and bolts to heavy duty machinery fall in
this category.
What are the problems in acquiring project inputs
in Pakistan? Discuss with the help of a few
examples based on your own experience.
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Projects in Manufacturing Organizations A
Holistic View
IT-SUPPORT
ORGANIZATION
MARKETING
ADMINISTRATION
PRODUCTION
ACCT. FINANCE
R D
HUMAN RES.
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Projects in Manufacturing Organizations A
Holistic View
All projects undertaken by an orga-nization
whether in the private, public or
non-governmental sec-tors, are done with a
fundamental purpose in mind to add value to that
organization. It is imperative that all projects
are consistent with the organizations mission,
goals and objectives and that there is broad
recognition of the importance of doing projects.
Organizations must have a culture supportive of
projects and create the requisite policies, and
institu-tional and informational infrastruc-ture
(e.g. PMO, databases, proces-ses and
methodology).
ORGANIZATION
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Projects in Manufacturing Organizations A
Holistic View
The existence of commercial organizations in the
manufacturing and service sectors can be traced
to the fulfillment of needs on the market. Based
on market research and sur-veys and consequent
identification of customer wants and needs,
manufacturing organizations plan the development
of new products (or services in the case of
service organizations) and/or seek to modify
existing product (or service) offerings.
Marketing is, hence, often the first front in
the life of a project which leads to a new
product (or service).
MARKETING
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Projects in Manufacturing Organizations A
Holistic View
A manufacturing organizations pro-duction
department is instrumental in bringing onto the
market new products (or modified versions of
existing ones) created as a result of the
organizations projects. The organization must
ensure that its production base is sufficiently
large to accommodate demand for the new and/or
modified product(s) in the market and that the
material inputs from suppliers are made available
when needed. A modifica-tion of processes and
production technology, and expansion of
pro-duction capacity may be necessary and must be
undertaken in a timely manner.
PRODUCTION
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Projects in Manufacturing Organizations A
Holistic View
A corporations Research Development Division
is instrumen-tal in the development of new
pro-ducts and in undertaking significant
alterations to existing product offerings.
Research and development is a complex,
challenging, risky, time-consuming and
resource-intensive excercise which, if
successful, can bring the organization
considerable financial rewards besides boosting
its public image and bringing it goodwill. RD
projects usually count as the most highly valued
projects in an organizations portfolio.
R D
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Projects in Manufacturing Organizations A
Holistic View
Information is a critical resource without which
no organization can function effectively.
Projects undertaken by organiza-tions need
information throughout their respective
life-cycles, from initiation through planning and
implementation til closure. Informa-tion is also
needed to effectively monitor, evaluate and
control pro-jects. To manage projects,
organizations have established sophisticated and
costly information infrastructures, consisting of
networked hardware, databases and powerful
project management softwares.
IT-SUPPORT
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Projects in Manufacturing Organizations A
Holistic View
Many projects which an organiza-tion undertakes
will require some level of general administrative
support over their respective life-cycles. Adminis
trative support and services can be rendered in
many areas for example, procurement support,
help with formulating contracts, placing
advertisements for specialized project staff in
newspapers, assisting in setting up a project
site office, arranging train-ing courses and
providing security.
ADMINISTRATION
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Projects in Manufacturing Organizations A
Holistic View
All projects incur by definition a cost. This
cost can be (relatively) small, for example, for
a project to study and optimize an
organiza-tions process infrastructure. It can
also be quite large, for example, for a project
to set up a new production line, or to undertake
an RD project. When an organization concurrently
undertakes several projects, each project incurs
different levels of cost at different points of
time in their respective life-cycles. The
organization has to ensure that it has the
financial resources needed to fully meet cost
obligations at any point in time.
FINANCE ACCOUNTING
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Projects in Manufacturing Organizations A
Holistic View
Human resources are considered an organizations
most valuable asset. They may also be
consider-ed a projects most important asset. In
assigning its human resources to a project,
organizations must care-fully analyze and assess
their quali-fications, expertise, competence and
experience for capably under-taking their project
assignments. The organization must also decide if
and what training is required and whether it
should tap its existing human resources pool or
hire new resources from outside in case of
shortage. Project outsourcing may be considered.

HUMAN RESOURCES
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Project Management and Strategic Management
MISSION
Objectives
Goals
Vision
Strengths and Weaknesses of the Organization
Opportunities and Threats in the Organizations
Environment
Strategies
Programmes
Projects
Operational Plans
Organiza- tional Design
Facilitative Services
Policies
Procedures
Systems
Protocolls
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The Cost of Project Mismanagement(For Pakistan)
Dawn, December 18, 2005