PROJECT ANALYSIS AND

MANAGEMENT

Course Code: MBA 731

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UNIT ONE

INTRODUCTION

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LESSON TWO

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Lesson Objectives
● At the of this lesson, students be able to :
o Identify the differences and similarities between project and program

o Define and explain the project life cycle and its phases

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PROJECT versus PROGRAM

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Project Vs Program
● The difference b/n project and program can be explained in terms of the
following features
1. Definition
● A Project is defined as “A temporary organization that is created for the
purpose of delivering one or more business products according to a
specified Business Case”.
● A Program is defined as “A group of related projects managed in a
coordinated way to obtain benefits and control not available from
managing them individually”.

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Project Vs Program
2. Structure:
● The components of a project are specific and exact.
● The scope and goals of a project are well-defined – while programs are
typically less clear-cut.
● Because a program covers multiple projects – a program team tends to
be larger as it also incorporates the project managers and their project
team members.

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Project Vs Program
3. Effort:
● A project represents a single, focused endeavor/effort.
● A program is a collection of projects – together all the projects form a
connected package of work. The different projects complement each
other to assist the program in achieving its overall objectives. It’s likely the
different projects within a program will overlap – the program manager
will therefore assess these overlaps and work with the relevant project
managers to ensure the program’s smooth progression.

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Project Vs Program
4. Length of time horizon:
● While some projects take several years – the typical project will not take
very long to complete. Projects vary in duration.
● Programs often take a very long time to complete as they intend to
deliver more. It’s therefore common for programs to be organized into
phases or tranches.
● A particularly long project may also be organized into multiple phases –
but this is less common.

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Project Vs Program
5. Benefits:
● Projects focus on achieving tangible outputs, i.e. what you gain upon
completing the project. Thus projects focus on desired output while
● Programs focus on desired outcomes or benefits – which are often not
tangible. The benefits provided by a program depend on the collective
benefits of its projects. Examples of a program outcome include a cultural
or political change within an organization – or a change in the way in
which an organization operates.

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Project Vs Program
6. Effectiveness and Efficiency
● Project’s efficiency and effectiveness can be measured based on metrics
like budget, schedule, quality, etc.
● Program's efficiency and effectiveness will be measured in terms of the
benefits realization of the program. Such differentiation allows one to
measure the success of both the project and program management, even
though the projects will exist within the program.

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Project Vs Program
7. Scope:
● Projects have defined objectives, and scope is iteratively developed;
programs have a scope that encompasses the scope of the collection of
projects.
8. Managers
● Project managers expect change and implement processes to keep
change managed, where program managers accept and adapt to change
to optimize the delivery of benefits.

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Project Vs Program
9. Success
● Success is measured within projects through product and project quality,
timeliness, budget compliance, and customer satisfaction;
● Success in a program measured by the program’s ability to deliver its
intended benefits to the organization

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Project Vs Program
10. Objective
● A program has general objective while projects have a specific objectives.
● For example, if the objective of the extension program is self food
efficiency, the objective of the project could be increasing crop
production, milk production, honey production, etc. which are more
specification than being general
11. Area
● Project has a specific project area while program don't have a specific
program area.

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 Project Vs Program: Comparison Chart
BASIS FOR
PROJECT PROGRAM
COMPARISON
A project refers to the temporary A program implies a set of
activity, which is undertaken to projects which are linked to one
Meaning
create a distinct product or service, another, in a sequential manner
that has certain objectives. to attain the combined benefits.
Focus on Content Context
Time horizon Short term Long term
Specific deliverables, i.e. product or Benefits received
Concerned with
service
Tasks Technical in nature Strategic in nature
Produces Output Outcome
Success can be measured in terms Success is measured by the
of product quality, timeliness, cost extent to which program meets
Success effectiveness, compliance and out the needs and benefits, for
degree of customer satisfaction. which it was conducted

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 Project Vs Program: Comparison Chart
Project Program

Task Because are more concerned Because they are concerned with
orientation with deliverables than benefits benefits and not deliverables, programs
they are concerned with tactics – are more strategic than programs – they
“doing things right are concerned with “doing the right
things”.
Scope The scope of projects is tight – Programs have a wide scope, focusing
they are limited to producing on benefits, and may have to change
deliverables. scope dramatically during their
execution to meet the changing needs of
the organization.
Functional Projects are typically confined to Programs will typically span multiple
unit a single functional unit (vertical functional units within an organization
unit) within an organization.

Time Projects are typically of a shorter Programs are typically executed over a
Horizon duration than programs, often much longer timescale than projects,
just a few weeks, and by often several years.
definition have a finite duration.
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Some Similarities between Project and Program
● Both project and program
o has purpose/objective

o require input (financial, manpower, material)

o generate output (goods or services)

o operate over space and time

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Activity -1
1. Which of the following is true about a project and a program ?
A. Project is specific in objectives while program has got general objectives
B. Project has specific area/geographic unit while program may not have
specific area
C. Project has clearly determined and allocated fund but program may not
have clear and detailed financial allocation
D. Project has specific life but program may not have specific time of ending
E. All of the above

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AN OVERVIEW OF PROJECT LIFE CYCLE

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Project cycle and Phases
● The different stages/phases through which a project passes is called
project life cycle. Thus project life cycle is defined as the sequence of
phases through which a project passes from inception ( initiation) to its
completion ( closure).

● A project cycle is a continuous process made up of separate and

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Project cycle and Phases
● Project life cycle phases includes:
o Phase 1: Identification/Initiation
o Phase 2: Preparation and analysis ( Formation)
o Phase 3: Appraisal
o Phase 4: Implementation
o Phase 5: Evaluation/Closure

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Project life cycle and phases
The project cycle :
● Considers various stages in which each stage not only is grown out the
proceeding ones but also leads into the subsequent ones.
● The planning process does not contain such a strict sequence of events
since all the aspects of the project have to be considered simultaneously
and if necessary adjusted to one another.
● Therefore, a project cycle is a self-renewing cycle in that new projects
may grow out of the old ones in a continuous process and
self-sustaining cycle of activity.
● The main features of this process are information gathering,
analysis, and decision-making

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Characteristics of the Project Life Cycle
Baum Cycle
Identification

Evaluation Preparation

Proposal
development

Implementat
Appraisal
ion
Financing
decision

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Characteristics of the Project Life Cycle
● Project Identification Phase
● also called Initiation Phase or Conceptualization Phase.
● is the prerequisite phase for starting a project .
● helps to identify project idea, which enables to launch a project.
● Project ideas are like other ideas which do not take concrete shape
immediately. There are several stages of making propositions, their
consideration and scrutiny for their soundness.

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Characteristics of the Project Life Cycle
● The idea first born, it is under incubation for sometime and subsequently is
begins to take some definite. The project ideas to develop take almost the
same course. This project identification may be broadly divided into four
stages, viz
A. Conceptual stage- where projects ideas generated
B. Screening Stage - at which unviable ideas are eliminated
C. Identification stage- at which viable projects are selected
D. Pre-feasibility state- at which pre-feasibility studies are taking up
● During Conceptualization: ask yourself the following questions:
What is the problem? What is the gap? Will the development
of a project solve that problem? What are the specific goals
of the project? Do we have enough resources to create and
support the project?

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Steps in Project Identification…
● Project Identification Phase…
● Screening project ideas: a process of eliminating the irrelevant and unviable
ideas. It can be done with the help of testing the following conditions of the
propositions.
a) Compatibility with the promoter
b) Consistency with governmental priorities, national goals and governmental
regulatory framework.
● E.g. No contrary to environmental effects, to governmental regulation, to
easily accommodation foreign exchange requirements, etc.

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Steps in Project Identification…
c) Availability of inputs (capital, technical know-how, raw materials, power supply,
etc.)
d) Adequacy of market. : includes total present domestic market, competitors and
their market shares, export market, quality price profile of the product, sale and
distribution system, projected increase in consumption, barriers to the entry of
new units, economic, social and demographic trends favorable to increased
consumption, and patent protection.
e) Reasonableness of cost,
f) Acceptability of risk levels, etc.

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Characteristics of the Project Life Cycle
● Project Identification Phase…
● Steps for the project initiation phase may include the following:
● Undertaking a pre-feasibility study: Identify the primary problem the project
will solve and whether the project will deliver a solution to that problem
● Identifying scope: Define the depth and breadth of the project. This include:
o Project’s purpose, vision and mission
o Measurable objectives and success criteria
o Elaborated project description, conditions, and risks,

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Characteristics of the Project Life Cycle
● Identifying deliverables: Define the product or service to provide
● Identifying project stakeholders: Figure out whom the project affects and what
their needs may be.
● Developing a business case: Use the above criteria to compare the potential
costs and benefits for the project to determine if it moves forward
● Developing a statement of work: Document the project’s objectives, scope, and
deliverables that you have identified previously as a working agreement
between the project owner and those working on the project

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Characteristics of the Project Life Cycle
● Project Identification Phase…
● In general, the sources of projects may be one or more of the following:
1. Some may be “resource based” and stem from an opportunity to make
profitable use of available resources.
2. Some projects may be “market based” arising from an identified demand in
home or oversees market
3. Others may be “need based” where the purpose is to try to make available to
all people in an area of minimal amounts of certain basic material
requirements and service

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Characteristics of the Project Life Cycle
4. Well-informed “technical specialist” and “local leaders” are also common
sources of projects.
● Technical specialists could identified many areas where they feel new
investments might be profitable,
● while local leaders may have suggestions about where investments
might be carried out
5. Ideas for new projects also come from “ Proposals to extend and /or expand
existing programs and projects” as well as from identifying technological
alternatives
● In general project start as an elementary idea. Eventually,
some simple ideas are elaborated into a form to which the
title “ project” can be formally applied

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Characteristics of the Project Life Cycle
● Project Identification Phase…
● Thus at the identification stage:
o the project purpose, goals, vision and mission with the stakeholder
clarified
o the project objective or need is identified ( i.e measurable objectives and
success criteria); this can be a project problem or opportunity.
o A pre-feasibility study is conducted to investigate whether each option
addresses the project objective and a final recommended solution is
determined.
o The major deliverables and the participating work groups
are identified, and the project team begins to take shape.
o A project manager is appointed
o Approval is then sought by the project manager to move
onto the detailed planning phase/ Formulation phase
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Characteristics of the Project Life Cycle
● Identification Phase…
● The result of this phase is the project order
o Problem analysis/contract analysis
o Goal clarification
o Potential analysis
o Project task/ functional specification
o Feasibility study
o Economic efficiency

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Activity -1
● Question : One of the following may serve as a source of project idea?
A. Resource based
B. Need based
C. Market based
D. Technical specialist and local leaders
E. Proposal to extend/expand existing project
F. All of the above

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Characteristics of the Project Life Cycle
2. Project Preparation Phase:
● is also called Project Planning phase
● this phase focus on more detailed analysis of the projects and preparation of
the project plans.
● This is the stage at which the project is being seriously considered as a definite
investment action.
● It is a stage where scope of the project, location and site, project size and all
other requirements decided.
● The analysis in this stage includes
A. Pre-feasibility Study
B. Feasibility Study
C. Planning of a project or development of a proposal

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Characteristics of the Project Life Cycle
● Preparation Phase…
A. Content of the pre-feasibility study:
● The pre-feasibility study should briefly discuss:
o The objectives of the project
o The nature and size of the market and demands for the output or the
needs that it would satisfy, together with the foreseen beneficiary groups
o The availability of the most important materials and human inputs
o Availability basic alternative technologies together with their
merits and weakness
o Approximate investments and operation costs as well as
expected revenue.
o Rough estimate of financial and economic return
o Any major factors that is likely to have an important effect
on the project
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Characteristics of the Project Life Cycle
● Preparation Phase…
B. The Content Feasibility study:
● covers all detail feasibility analysis which include
o Technical analysis,
o Market and Demand analysis,
o Financial analysis,
o Economic analysis,
o Environmental analysis,
o Social and cultural analysis,
o Institutional analysis,
o Sensitivity analysis,
o Risk Analysis .
● If all the result of feasibility analysis promising, the project
proposal or plan will developed
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Characteristics of the Project Life Cycle
● Project Preparation Phase…
C. Project Plan preparation
● Project planning :
o is the heart of the project life cycle,
o is where the project plans are documented, the project deliverables and
requirements defined, and the project schedule created.
● The purpose of the project planning phase is:
o Establish project requirements.
o Establish cost, schedule, list of deliverable and delivery dates .
o Establish resource plan.
o Get management approval and proceed to the next phase.
● Project planning involves creating a set of plans to help guide
your team through the execution and closure phases of the
project.
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Characteristics of the Project Life Cycle
● Project Preparation Phase…
● The basic processes of the project planning are:
● Scope planning specifies the in-scope requirements for the project and
facilitates creating the work breakdown structure.
● Preparing the work breakdown structure specifies the breakdown of the
project into tasks and sub tasks.
● Project schedule development specifies the entire schedule of the
activities detailing their sequence of execution.
● Resource planning specifies who will do what work at which
time of the project and if any special skills are needed to
accomplish the project tasks.

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Characteristics of the Project Life Cycle
● Budget planning specifies the budgeted cost to be incurred in the
completion of the project.
● Procurement planning focuses on dealing with vendors outside of your
company
● Risk management planning charts the risks, contingency plan and
mitigation strategies.
● Quality planning for quality assurance to be applied to the project.
● Communication planning on the communication strategy with
all project stakeholders

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Characteristics of the Project Life Cycle
● Project Preparation Phase…
● The planning phase refines the project’s objectives gathered during
the initiation phase and plans the steps necessary to meet those
objectives by further identifying the specific activities and resources
required to complete the project.
● When articulating the project objectives, it is important to follow the
SMART rule:
● Specific (get into the details). Objectives should be specific and
written in clear, concise, and understandable terms.

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Characteristics of the Project Life Cycle
● Measurable (use qualitative language so you know when you are
finished). A requirement must have a measurable outcome; otherwise you
will not be able to determine when you have delivered it.
● Acceptable (to stakeholders).
● Realistic (in terms of achievement). Objectives that are impossible to
accomplish are not realistic and not attainable. Objectives must be
centered in reality.
● Time bound (deadlines not durations). Objectives should have a
timeframe with an end date assigned to them.

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Characteristics of the Project Life Cycle
● The result of planning or preparation phase is :
o General Planning
o Definition of work package
o Detailed planning
o Clarification of responsibilities
o All feasibility analysis including Risk analysis
o Definition of boundaries

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Activity 2
● Question: Which of the following is the activity that undertaken in the
second phase of a project life cycle?
A. Pre-feasibility analysis
B. Feasibility analysis
C. Development of a project proposal
D. All of the above

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Characteristics of the Project Life Cycle…
3. Project Appraisal Phase
● At this stage critical review of the project is to be conducted.
o Assess critically whether the proposal is appropriate and sound before
large sums are invested.
o Generally only internal institution/government staffs are used for this
work ( team of experts).
o Projects are appraised both in the field and at the desk level.
o Appraisals should cover the following aspects of the project: Technical,
Market and demand, Financial, Economic, managerial ,
environmental, organizational, etc.
o The above issues are the subjects of specialized appraisal
report. On the basis of this report, financial decisions are
made- whether to go ahead with the project or not.

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Characteristics of the Project Life Cycle…
4. Project Implementation Phase:
● In this phase, the decisions and activities defined during the planning phase are
implemented.
● During this phase,
o Funds are actually disbursed to get the project started and keep running
o The project plan is put into motion and the work of the project is
performed.
o Progress is continuously monitored and appropriate adjustments are
made and recorded as variances from the original plan
o It is important to maintain control and communicate as
needed during implementation
o Status reports should always emphasize the anticipated
end point in terms of cost, schedule, and quality of
deliverables.
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Characteristics of the Project Life Cycle…
● Implementation Phase…
● The result of this phase
o Execution (implementation)
o Execution of work packages
o Project tracking (Review)
o Control of deviations
o Updating the planning
o Acceptance
o Information on milestones

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Characteristics of the Project Life Cycle…
● Closing ( Termination) phase…
● During this phase:
o the emphasis is on
• releasing the final deliverables to the customer,
• handing over project documentation,
• terminating supplier contracts,
• releasing project resources, and
• communicating the closure of the project to all stakeholders.

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Characteristics of the Project Life Cycle…
o The last remaining step is to conduct lessons-learned studies to examine
what went well and what didn’t. Through this type of analysis, the wisdom
of experience is transferred back to the project organization, which will
help future project teams.
o Since it is not possible to ensure in most projects that the same group of
people will be working again on the next project. The priorities during this
phase include the security of know-how and the re-integration of the
project stakeholders
o The result of this phase
• Project final report
• Re-integration of employee
• Know-how security
• Dissolution of project team

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Activity -3
● Based on Baum project life cycle model, list the five phases and discuss their
characteristics?

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ANY QUESTIONS

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THANK YOU!

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