Wednesday, October 23, 2019

Introduction to Project Management: Definition of Project, Characteristics of Project

What is a Project? What are the characteristics of Project?

According to the Project Management Institute:
 "A project is a temporary endeavor undertaken to create a unique product, service, or result." 

Let's break down this definition into its components to understand further what a project is (and what it is not) and try to understand project characteristics:

It is a temporary endeavor:- what does that mean? It means that it isn't endless; it has a start date and an end date. Projects do not go on indefinitely. Activities that go on indefinitely are typically known as processes or operations. So how do we understand when a project ends?

The project reaches to end when one or more of the following condition(s) met:
  • The project’s objectives have been achieved;
  • The objectives will not or cannot be met;
  • Funding is exhausted or no longer available for allocation to the project;
  • The need for the project no longer exists (e.g., the customer no longer wants the project completed, a change in strategy or priority ends the project, the organizational management provides direction to end the project);
  • The human or physical resources are no longer available; or
  • The project is terminated for legal cause or convenience.
It creates a unique product, service, or result:- which we call a deliverable. Unique means that it is unlike any other project. It may be similar to other projects but it is never identical to one. This is what distinguishes a project from a process. A project is unique; a process is repeatable and strives for consistency, standardization, and no deviation from a standard. Deliverable means that it has a tangible or intangible outcome: i.e. a new software product, a new drug, a new building, a merger of two companies, improved customer service, etc. The outcome may be a product, goods, or a service.

Fulfillment of project objectives may produce one or more of the following deliverables:
  • A unique product that can be either a component of another item, an enhancement or correction to an item, or a new end item in itself (e.g., the correction of a defect in an end item);
  • A unique service or a capability to perform a service (e.g., a business function that supports production or distribution);
  • A unique result, such as an outcome or document (e.g., a research project that develops knowledge that can be used to determine whether a trend exists or a new process will benefit society); and
  • A unique combination of one or more products, services, or results (e.g., a software application, its associated documentation, and help desk services).

 ⇛ It drive change in the Organization:- From a business perspective, a project is aimed
at moving an organization from one state to another state in order to achieve a specific objective. The term Current State, Future State, and Transition State are used to describe change in organization.  
  • Current state: is the state of organization before the project begins.  
  • Future state: is the desired or resulted state where the organization will be driven by the project. 
  • Transition state: For large projects, if there are milestone deliverables, transition state refer to the state where organization reaches after each milestone is delivered.
It enables business value creation:- business value is the net quantifiable tangible, intangible, or both benefit to the stakeholders derived from a business endeavor. It is considered the return, in the form of elements such as time, money, goods, or intangibles in return for something exchanged.

Examples of tangible elements:
  • Monetary assets,
  • Stockholder equity,
  • Utility,
  • Fixtures,
  • Tools, and
  • Market share.
Examples of intangible elements:
  • Goodwill,
  • Brand recognition,
  • Public benefit,
  • Trademarks,
  • Strategic alignment, and
  • Reputation.

It initiated in some context:- projects are created in context of organizational factors by organizational leaders. Four fundamental categories of factors are there, which illustrates the context of initiating a project:
  • Meet regulatory, legal, or social requirements;
  • Satisfy stakeholder requests or needs;
  • Implement or change business or technological strategies; and
  • Create, improve, or fix products, processes, or services.

It has defined objectives:- The goals expected to be achieved. There can be technical goals (develop new technology), legal or political goals (to meet governmental regulations), and/or business goals (beating or eliminating competition). These objectives should be measurable.

It has scope:- All the work required to deliver the product or result and satisfy the objectives for which a project was undertaken at a level of quality expected by the customer. The scope includes all the deliverables required to meet the project objectives.

It has cot:- The planned cost of conducting the project; it includes human and physical resources.

It has Time/Schedule:- The planned time to complete the project, as well as the Milestones along the way. 


EXAMPLES OF PROJECTS:

  • Building a house
  • Developing a new pharmaceutical compound for market
  • Building a mobile application
  • Expanding a tour guide service
  • Developing a new product
  • Merging two organizations
  • Improving a business process within an organization
  • Improvement of a service (i.e. customer service, Six Sigma initiative)
  • Modifying a computer software program used in an organization
  • Conducting research to develop a new manufacturing process


EXAMPLES OF PROJECT OUTCOMES:

  • Pyramids of Giza,
  • Olympic games,
  • Great Wall of China,
  • Taj Mahal,
  • Publication of a children’s book,
  • Panama Canal,
  • Development of commercial jet airplanes,
    Polio vaccine,
  • Human beings landing on the moon,
  • Commercial software applications,
  • Portable devices to use the global positioning system (GPS), and
  • Placement of the International Space Station into Earth’s orbit.


Further reading on PMP:
  1. Project Management Life Cycle
  2. Project Management Certifications Questions with explanation.
  3. Free PMP Certification Questions



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