LECTURE 1

Project concept and definitions. Signs of the project.

WHAT IS THE PROJECT?

Concepts and definitions.
Recently, the word” project " is one of the very common terms in
society. Project originated from the Latin word “projectus“, which
literally means “thrown forward." This term entered our lexicon from the
technical field. The project is a broader, more content and complex
system.
The history of project and project management dates back to the
30s of the last century and is associated with the Coordination of huge
engineering projects in aviation and oil and gas, especially in the United
States.
In 1937, the American scientist L. Qulik created the theory of
matrix organization for the first time in order to lead and execute complex
projects. This theory was first used in 1953-54 in the application of US
Air Force projects. And in 1956 for the first time
The US company DuPont de Nemours has developed project
management methods and techniques. At the end of 1957, by the
Remington Rand Company of the United States and the collective of the
UNIVAC Scientific Research Center, C.Kelly and R.Under Walker's
leadership, the “Crisis Path Method " (Eng. CPM). This method was first
applied in the construction of a chemical plant built in Luisville,
Kentucky, USA, and brought tremendous success.
And in 1957-58, it was developed by the US NAVY by Polaris
software and the “PERT-network planning method” has been developed.
In 1958, through the PERT and CPM programs, functions such as project
work planning, risk assessment, project cost, price control and resource
management were performed.
In the 60-70s of the last century, the possibilities of software were
expanded by creating modules such as PERT and CPM methods related
to projects in all areas, as well as price optimization and methods,
methods of equal distribution of resources, integration mechanisms,
management of logistical support systems, various types of network
planning methods, etc. Thus, in Europe and other continents, the science
and culture of projects and their management began to be applied.
The development of computer technology has made a great
contribution to project management. The emergence of fourth generation
computers and the development of new information technologies
contributed to the improvement and wider application of project
management methods. Finally, in 1987, in the United States, The Project
Management Institute (Project Management Institute PMI) was founded
by the collective "PMBOK" (Project Management Body of
Knowledge). This book was published as the first professional field
subject, which includes the basics of project management knowledge,
including the role, structure, management techniques, methods and other
such issues.
The above and the history of the development of the field of project
management can be described on a table as follows:

1930-1940 The emergence and dissemination of the concept of the

project
1940-1960 Project and their management, creation of methods and
tools.
1960-1970 Creation of network methods and software.

1970-1980 Organization of professional activity and its role in

society.
1980-1990 Formation of knowledge on project management.

1990-2000 Integration of systems. Assessment of knowledge.

2000-2010 Its entry into the fields of science and teaching as a new
scientific direction and subject.
2010-2020 Modern systems and vital necessity of Project
Management.

Looking at the history of the development of the field of projects

and their management, it seems that the projects have gone through a
complex period, and each country differs both in the development of this
area and in the method of approach. For this reason, the concept of the
project is presented in different views and widely.

ISO-21500 STANDARDS:
This international standard provides important guidelines for
Project Management. These standards can be used by any public, private
and public organizations and in the management of any type of projects,
regardless of their complexity, size, duration. The standards provide a
high level of explanation of concepts and processes that form the most
efficient practice of Project Management.
This defines projects in the context of international standard
programs and project portfolios. However, detailed information on the
management of programs and project portfolios is not indicated here.
They are addressed because the subjects that belong to the general field
of management reflect only the management of projects.

Project concept and definition

Construction of buildings, construction of industrial facilities,
regulation of market economy, introduction of a new tax system, creation
of high technologies, writing of software, discovery of techniques,
creation of companies in the fields, filming of movies, Organization of
cultural programs and other activities are called “Project” activities.
Despite the variety of these measures, there are the same
parameters, the same concepts that characterize them, that is, they are all
“projects”. But what about the project means?
Let's look at a few of the definitions given to projects:
Definition 1. A rare set of works, characterized by special
conditions, limited time and budget, established quality standards, a
variety of types of activities and concepts of goals, is called a project.
Definition 2. A project is a set of actions in which people,
materials and financial resources are concentrated and perform a unique
package of works within a limited time and budget. Projects are
implemented by conducting certain qualitative and quantitative changes.
Definition 3. A project is a set of works carried out by various
persons or organizations in order to obtain relevant results within the
framework of budget constraints, with defined start and end deadlines.
Definition 4. Project-is a temporary enterprise producing and
servicing rare products. Here, "temporality" is due to the fact that the
project is tied to the start and end times, that is, the project has a start
date, as well as its end date.
Definition 5. (WEBSTER dictionary): Project – means to think and
plan something.
Definition 6. (USA, PMI): Project – an enterprise whose purpose is
known in advance. Successful completion of the project means the
achievement of the set goals.
Definition 7. (UK, PMA): Project – a set-purpose freelance
enterprise that puts forward its requirements by parameter such as time,
budget and quality.
Definition 8. (Germany, GPMA): The project is a targeted
enterprise characterized by unique conditions. These conditions are as
follows: purpose, time, budget and other resources should be determined;
environmental impacts should be determined; a project implementation
plan should be drawn up.
Definition 9. (Azerbaijan, Iqbal Babayev): A project is a set of
activities and limited resources that are planned to achieve the goal by
implementing any idea.
 ISO-21500 STANDARDS:
A project is a set of unique (unique, inimitable) processes that are
carried out to achieve the goal, have initial and final stages, and consist
of coordinated and controlled work. Achieving the goal requires
managing multiple constraints in terms of time, budget, and resources to
achieve the final result by fulfilling specific requirements.
Despite the fact that the projects are similar, each project is
considered unique due to the fact that there are certain differences
between their final results, stakeholders, resources and management
methods and techniques. Each project is divided into several phases,
having certain start and end dates.

Signs of the project

As can be seen from the definitions given to projects, they are
functional and objective in nature.
In general, projects have the following characteristics:
1. change and innovation;
2. time limit;
3. budget and expenses;
4. resources;
5. inimitable and rarity
6. integrity and completeness;
7. legal provision;
8. organizational structure;
9. framework standards.

Let's take a look at each of these features separately.

1. Change and innovation

In projects, this sign is assessed as one of the main properties. If
this sign is felt in the project, then they say “the project lives.” During the
initial period of the project, all its elements, that is, works and tasks, are
in a “passive” (stopped, not started) state. Over time, as the work
envisaged in the project is carried out according to the plan, their state
changes and goes from “passive”to “active”(work in execution), that is,
excess work begins to be performed, resources are mastered. After the
work is fully completed, they again go into a “passivated” (performed
work) state, that is, the work or tasks end up achieving the set goal. Thus,
each element as (work or task) is performed individually, the overall state
of the project changes, and as a result, the project changes both itself and
its surroundings. Thus, the peculiarity of changing and changing in
projects is observed.
 On the other hand, each project is an object of research and,
therefore, there is always a feeling of signs of research and development
in the projects. Over time, as the environment evolves and changes, it
demands the introduction of new projects and makes new demands on
existing projects. For this reason, each new project creates an
environment that meets modern requirements by applying it, brings
innovation and develops the environment within the framework of new
challenges. At this time, a sign of” novelty " is felt.
If the sign of” novelty " was not felt, then these projects are called
unsuccessful, without consequences. Of course, successful projects bring
innovation by changing the environment, resulting in an “uncomfortable”
situation in the environment. Each project affects the environment,
changing its traditional state, and the environment that has learned to this
traditional state is subjected to a process of adaptation.

2. Time limit
In the implementation of projects, it is possible to achieve the goal within
a certain time frame. One of the main parameters that distinguishes
projects from other events and objects is the time limit. As with the
beginning and end of every business, projects have begin (start) and end
(finish) times. These time indicators are usually limited. Therefore, one of
the main conditions for the successful completion of the project is its
implementation within the given time frame.

3. Budget and expenses

For the implementation of each project, certain financial resources
are required, and therefore, an appropriate budget is formed for each
project. The budget includes expenses for the implementation of the work
envisaged in the project and the costs of all types of resources. The
project manager determines the Budget Control Mechanism and appoints
a person responsible for this work in the project team.
The project budget can be formed in two cases:
- after the formation of the goal of the project, its budget is
determined;
- after the budget is known, the project concept corresponding to
the allocated funds is determined.
In both cases, the budget occupies a special place as the main sign
in the implementation of the work envisaged in the project.

4. Resources
In addition to the budget in the implementation of projects,
other funds are used. This applies to resources: people, techniques,
 equipment, materials and other resources. When planning a project,
each resource is tied to the work or task in the project, and, of
course, all resources are in a limited volume. Resources and their
volume are planned in advance, and on the basis of this, the project
implementation period is determined. One of the main issues for
the approval of the project is the compilation and approval of the
resource appropriation schedule. The correct implementation of
this plan-schedule serves the project purpose and the successful
completion of the project.

5. Inimitable and rarity

There are no two projects in life that are the same. Even
projects that are very close and similar to each other differ from
each other. A project is a set of works and tasks. To perform each
task, a certain amount of time, budget is allocated and various
resources are used. This variety gives each case a feature of rarity
or a sign of inimitable. In projects, the implementation of any work
with different funds or at different times is considered as a sign of
its uniqueness.

6. Integrity and completeness

Projects are characterized by a large number of parameters. The
fact that all the parameters affecting the project are reflected in the project
makes it whole it characterizes. First of all, determining the number of
factors envisaged in the projects and the number of parameters that
directly or indirectly affect the result of the project leads to the
completeness of the project. At this time, they say that the project is
whole or complete. Thus, the sign of completeness means that projects
are fully characterized by all parameters.

7. Legal provision
Legal support of all stakeholders participating in the project and the
establishment of legal relations between them is one of the main
conditions for the success of the project. In the new economic conditions,
the creation of a legal framework for the implementation of projects in a
dynamically changing political and economic environment is considered
one of the main issues. For this reason, all actions and decisions related to
the project in the project office should be based on the legal framework
and provided with relevant regulatory documents.

8. Organizational structure
As can be seen from the definitions, the project is a small
enterprise. Just as every enterprise has an organizational structure,
projects must have an organizational structure. In particular, the absolute
importance of the organizational structure is required in the
implementation of complex projects, and in projects of this type, one of
the main parameters is the “creation of organizational structures”.
Organizational structure may not be applied in small projects.

9. Framework standards
The project, like other objects, is closely related to the
environment. The exact limit and scope of each of the works performed
in the project should be determined. Therefore, projects must be covered
by frame standards both externally and internally. In general, projects are
implemented within any framework standards. The project should show
itself vividly by changing the environment in which it is being
implemented. The project should differ from other works in its unique
features. Since projects are closely related and related to the environment,
they can be viewed as a complete system that has a certain feature.
 LECTURE 2

Classification and types of project.

The environment of the project.

Projects are diverse in their nature. They differ from each other in
the subject area, scale, number of participants, degree of complexity and
other indicators. Thus, the classification of projects is as follows:
The environment in which the project is implemented and its main
field of activity determine the type of project. For example: technical
project, organizational project, economic project, Social Project, mixed
project, etc.
The subject area, structure and components of the project
determine the class of the project. Projects are divided into three classes:
- mono-project;
- multiproject;
- the mega-project.
A mono-project is a separate project that has its own type, scale
and structure. A multi-project is a complex of projects consisting of
several mono-projects. A mega-project is a targeted program or
development program that combines mono and multi projects.
The scale of the project is determined according to the number of
participants, their impact on the environment and their size.
By scale, projects are divided into:
- small projects;
- secondary projects;
- great projects;
- and giant projects.
By scope, projects are divided into the following types:
- the intergovernmental project;
- international project;
- national or general government project;
- regional or interregional project;
- the project on intersectoral and sectoral areas;
- corporate projects;
- inter-enterprise and intra-enterprise projects.

The time spent on the implementation of the project is called the

duration of the project. According to the term, projects are divided into
three categories:
short-term project-up to 3 years;
 medium term – from 3 to 5 years;
long-term-more than 5 years.
 According to the degree of complexity, projects are divided into the
following group:
simple projects;
complex projects;
very complex projects.

These concepts are an indicator of the degree of complexity of the

project.
The nature of the subject area of the project determines the type of
project. For example: Investment Project, Scientific Research Project,
Information Technology Project, economic project, Social Project,
educational project, etc.
Let's consider what parameters the types of the project are
characterized by:
Projects that require capital investment and are carried out in order
to create a basic investment fund are called investment projects.
Projects aimed at transforming management, technological and
business processes on the basis of new technologies, methods and
discoveries are called innovation projects.
Research works of a scientific and experimental nature and projects
related to scientific research are called research projects.
Reforms in organizations, the creation of a new management
system, personnel reforms, the creation of a new organization, the
organization of events at the local or international levels, etc.all related
projects - refers to the organizational Projects section. The main goal of
research projects is related to changing the corresponding indicators of
the investigated object or subject area by examining its strengths and
weaknesses.
All projects aimed at the economy and economic development,
including financial, tax, customs, audit and other projects related to the
development of other sectors of the economy, are called economic
projects. The main goal of economic projects is to direct the subject area
to economic development and, as a result, to further increase its economic
indicators.
Projects aimed at improving the social status of citizens, reforms in
the social sphere, health care and sports, social protection of the less well-
off class, elimination of the consequences of natural and social disasters,
etc.are called social projects. Social projects have a vague, fuzzy nature
compared to other projects and, as a result, lead to a certain change in
social society.
 Projects are executed in a dynamically changing environment with
a certain impact. Each element characterizing the environment, i.e. laws,
standards, forces of development orientation, etc., plays a certain role in
the creation and formation of projects.
The project has two environments:
- the internal environment;
- external or environmental.
The project is influenced by both internal and external
environmental parameters. Environmental factors include geographical,
environmental, social, psychological, cultural, political, economic,
financial, legal, organizational, technological and aesthetic aspects.
Internal environment parameters include organizational structure,
Business Process, project team, management methods and tools, works,
tasks, contracts, participants and other elements.
Each environmental factor must be analyzed and evaluated in order
to determine the degree of influence of these factors on the project. These
factors can lead the project out of a state of resilience and cause the
project to collapse under certain circumstances.
It is well known that organizations develop in a competitive
environment, and therefore, over time, certain changes are required in the
business process and structure of these organizations. As a result,
appropriate projects are needed to implement these changes, and thus a
new project is “born”.
Since the project has Start and end dates, its “life path” (in some
sources, “life cycle”) is also present. If the project began to be
implemented, then, they say, the project “began to live”. While the
project is being implemented, its participants mobilize all their forces and
lead the project towards the goal.
In some cases, small enterprises operating within the organization
perform a project function and act as projects. It is known that all projects
applied in organizations contribute to the product produced by that
organization. In this case, any project applied in the organization is
subject to various kinds of influences on the part of the organization,
since it changes the environment by influencing the long-established
principle and the business process that is comfortable and native to
employees, although the result of this project is consistent with the
overall development strategy of the organization. As a result, with the
implementation and results of the new project in the organization a
certain “concern” arises and a “conflict” arises between the organization
and the project. This is a normal process, and it is in this environment that
the project should be carried out under the management of a professional
project manager. Therefore, project management is considered one of the
important issues as a requirement of life.
 Let's consider the project environment:
Organization: in the process of creating, forming and
implementing projects, the head of the organization plays an important
role. The head, taking into account the opinions, suggestions of experts,
specialists, takes as a basis the following requirements:
- requirements for the product and result of the project;
- requirements for the project implementation process;
- rules and methodology of correction in the project.
Finance: taking into account the cost of the goods produced and
the selling price, a budget is formed, which includes the total costs of the
project.
Sales: taking into account the principles of competition in the
market, the requirements for the project are formed.
Production: the use of new technologies and innovative solutions
to ensure the competitiveness of the manufactured product, the study of
new project requirements.
Material security: in order to further increase the competitiveness
of the project product, it is required to change the quality parameters
(material, raw materials, price, etc.) related to the project product.
Infrastructure: The requirements for the project are determined in
accordance with the business environment. These requirements include
Services, Communication Systems, Information, advertising and other
engineering works.
Ecology: The environmental impact of the project or its product on
the environment and the requirements associated with its emissions.
An analysis of the environmental parameters of the project shows
that the project manager, manager and his team are faced with the
following issues:
- requirements for the project;
- informing all stakeholders and project participants about the
project;
- determination of the volume and form of collected information
about the requirements for the project;
- the impact of the environment on the project and forecasting the
dynamics of its impact;
- definition of requirements on the basis of priorities and
construction of a management (based on the principle of subordination)
structure.
Although the environment of the organization to which the projects
are carried out and to which they belong does not affect the project in a
head, it affects it indirectly. The larger the scale of the project, the greater
the number of forces influencing it.
 Consider the factors that are the focus of international projects or
projects implemented with the participation of foreign countries:
Political factors:
- political stability;
- support of the project by the state;
- national manifestation;
- level of crime;
- trade turnover of participating countries (parties) ;
- representation in economic and military alliances.

Economic factors:
- structure of the national economy;
- gross domestic product indicators;
- types of liability and property rights;
- tax and customs policy;
- insurance coverage;
- currency stability and inflation rate;
- development of the banking system;
- state investment fund and investment policy;
- development environment of entrepreneurship and economic
entities;
- development of the business environment: sales, investment,
production, raw materials and products, labor, etc;
- pricing policy.

Social and cultural factors:

- standard of living and the level of national income per capita;
- education policy, its current state and level;
- tourism and migration policy, visa system;
- labor legislation;
- health and health environment;
- public organizations, media, television, internet;
- cultural and artistic fields;
- historical facts, cultural, religious and hereditary traditions;
- work, leisure, sports and other accommodation facilities;
- the demand for Project Management in society and the dynamics
of its development.

Legal factors and legislative framework:

- law on human rights and their protection;
- law on regulation of business environment and entrepreneurial
activity;
- property rights;
 - normative acts and laws on guarantees and benefits.

Science and technology factors:

- development of fundamental and Applied Sciences;
- innovative technologies and their application;
- development of industrial and manufacturing technology;
- Energy, oil and gas industry and technologies;
- transport, communication and information technology sector;
- non-oil sector development strategy;

Nature and environmental factors:

- nature and climate issues: temperature, humidity, wind,
topography or so forth.
- natural resources;
- ecology and environmental cleanliness: air, water and soil;
- legal acts and laws on Environmental Protection;

Infrastructure factors:
- vehicles;
- Communication, Information Technology and telecommunication
facilities;
- power supply;
- utilities;
- purchase and sale and payment systems;
- material and technical equipment;
- industrial infrastructure;
- service areas.

One of the main factors in the implementation of projects is its

internal parameters. Let's consider a few of the internal factors:

– the project management method affects its development and

sustainability, and also forms and regulates the psychological climate in
the project team;
- the distribution of communications, rights, responsibilities and
obligations between the main participants of the project is called the
project administration specification and affects its successful completion;
- on the basis of the purpose of each party and participant who has
an interest in the implementation of the project, appropriate requirements
are formulated and each participant affects the development of the project
at his level;
 – the team that performs the project is considered the “brain” of the
project and is its executive body. The success of the project largely
depends on the project team.

The correct, complete and timely transfer of information between

the participants of the project, the organization of information exchange
on the state of project implementation depends on the communication
system. This is called the” nervous system of the project".

ISO-21500 STANDARDS:
Project environment
General information
The project environment affects the project implementation process
and its successful completion. The project team must take into account
the following:
-socio-economic, geographical, political, legal, technological,
environmental and other external factors of the organization;
- internal factors such as competence and resource provision of the
organization in the field of strategic, technological, project management,
organizational culture and its management structure.
 LECTURE 3
The purpose of the project. The parties with interest.

In the list of concepts related to the project, “goal” and “task/work”

occupy one of the most important places. "Goal” and" Task/job " are very
close concepts to each other. By performing a” task/job", any goal is
achieved, or it becomes necessary to complete one or more tasks in order
to achieve a certain goal. The difference between the concept of” goal
“and” task/work “lies in the fact that” task/work “is characterized by
certain parameters, and it is not known what parameters”goal “is
characterized by, the parameters are revealed only in the”active cycle " of
tasks.
Thus,
Goal - means the result achieved within a certain time frame.
Task - means a result characterized by parameters within a given
time frame.

The conditions given to fulfill the project and the result achieved
are called the goal of the project.
One of the main issues when forming the project concept is to
determine the purpose of the project. In all projects, there is a set of goals
that characterize its structure, participants, parties of interest and the
environment, closely related to each other. To achieve these goals, the
selection of appropriate criteria is the main condition, and within the
framework of these criteria, alternative options are also used to achieve
the goal.
Thus, the goals of the projects are formed as follows:
- the purpose of the project should be clearly described;
- to achieve the goal, the results obtained must be evaluated;
- it should be possible to fulfill the project within the limits and
conditions.
In general, the project requires the purchase of a high-quality
product and the achievement of the goal within the framework of time,
budget, reserves and other restrictions.
The purpose of the projects is likely to change. The influence of the
environment on the project, the subject of unforeseen changes in
parameters in the process of its implementation and other extraneous
“exciting” influences can lead to a change in the purpose of the project.
Therefore, the goal of the project is characterized by a dynamically
changing environment. In this case, the current situation is analyzed and,
if required, appropriate adjustments are carried out.
Setting a project goal is a process that requires special skills and is
performed in the following sequence:
 - the subject area, general approach, problems and ways to solve it
are determined;
- the direction of the goal is determined;
- in this area, the set of possible goals is formulated;
- the purpose of the project is determined.

To determine the direction of the goal, a study of various sources is

required:
- the demand for the project;
- the essence of the order;
- the purpose of the project organization;
- the environment and environmental factors of the project.
The direction of the goal is assessed as a primitive analysis, then
the goal is determined and transferred to the activation stage.

The goal is determined individually or in groups. Since this

process is of a creative nature, it has its own specific laws and principles
of a general approach. In an individual approach, logical methods are
used. And in the process of determining the goal in a group form, the
issue is considered and implemented according to a wide range and intra-
group rules.
The purpose of the project should be clearly and honestly stated,
outlining the following conditions:
- the result of the project;
- the end time of the project;
- secondary costs;
- the change in [required] skill sets.;
- a set of goals and its structure.
Let us consider separately the conditions characterizing the goal:

The result of the project – determines the state of the subject area
depending on the type and nature of the project.
Project completion time -the project completion time is predicted
in advance, and the end date can be changed within certain restrictions.
However, in some cases, the completion date of the project is
necessarily set as a strict requirement, and changing the time is
considered as an unsuccessful completion of the project.
Costs - refers to the funds required for the full implementation of
the project. In some cases, the maximum limit of project costs is
indicated at the planning stage, in the event of costs above this limit,
project financing may be frozen.
The possibility of changing the goal – during the implementation
of the project, it may be necessary to make some changes to its purpose.
However, in order for the goal to be changed, the internal rules must be
approved and these rules must be known to the project team.
The set of goals and its structure – reflects the principle of
subordination and interconnection of tasks in the project and,
accordingly, their goals in groups when implementing projects.
If there are any risk elements in determining the objectives of the
project, then the following issues should be reflected in the concept of the
project:
- to agree with the parties by analyzing the product, result,
efficiency and environmental impact of the project;
- to form an additional set of comments and proposals on the
budget and duration of the project;
- to analyze, predict and agree with the parties the way to resolve
controversial issues that may arise between the outcome, duration and
budget of the project.
Extensive and detailed writing of the project concept facilitates the
process of its implementation and creates more favorable conditions for
it.

The composition, role, function and distribution of responsibilities

of project participants depend on the type of project, its scale and its
complexity. It should be noted that the distribution of tasks among
participants and their functions may vary depending on the project
management process. Only the following functions cannot be changed,
being known to everyone:
1. The purpose, essence of the project should be disclosed and
information about the planned work and Main Events should be provided.
2. The initiators of the project, interested parties, organizations,
customers, users, parties benefiting from the project, etc.should be
determined.
3. To fulfill the project, the source of funding must be determined,
the investor of the project must be announced.
4. In order to prepare and implement the project, his team must be
formed and announced.
5. The product obtained as a result of the project is characterized by
any production or service. Therefore, the production capacity and
manufacturers of the project must be determined.
6. To manage the project, its manager and Project Office must be
appointed.

Each project is also considered interesting for the following parties:

- Local executive authorities and municipalities;
- Public organizations and private companies;
- Citizens and various segments of the population.

It should be borne in mind that the main idea and its purpose in the
project cannot and cannot be changed. In simple projects, all work can
also be performed by one person. And in complex projects, large-scale
works and tasks can be divided into small parts and these functions can
be assigned to other participants.

The chief ideologist and author of the project is its author and
initiator of the idea. One of the main parties that have a direct interest in
the successful implementation of the project and the achievement of the
result is its customer. The customer is considered the future owner of the
project and one of the parties benefiting from its results. The customer
determines the basic requirements and scale of the project, forms the
budget of the project at the expense of his own funds and investors, and
solves financial issues related to its implementation. The customer, as the
main executor of the project, signs contracts, conducts a division of
responsibilities and regulates relations by establishing communication
links between project participants. The customer is responsible to society
and the law for the project.

Investors - provide capital investment for the project in credit or

other forms. The main goal of investors is to receive additional income
from invested capital for the product of the project. If the investor and the
customer are not the same person, then the role of the investor is usually
performed by banks, investment funds, donor organizations and others.
Investors conclude an agreement with the customer, monitor the
implementation of the project and conduct appropriate reports. In the
event that the properties purchased at the expense of the investment fund
during the implementation of the project are not paid by the customer,
these properties are transferred to the investor's balance.

Project manager - as a legal entity or an individual, the project

implementation process also acts as a representative of the customer and
the investor and is responsible for the following main tasks:
- planning;
- control;
- coordination.

The competence and functions of the project manager are

determined by the customer. At the same time, the project manager and
his team plan, coordinate and carry out implementation control in order to
successfully complete the project within the limits set.
Project team is a temporary group created to manage the project.
The main goal of the team is to successfully complete the project, achieve
the result by achieving the product of the project. The number of
command personnel is determined depending on the complexity, scale
and nature of the project. The main staff of the team consists of the
project manager, field managers, experts on financial and technical
issues, as well as monitoring project managers.

Project manager - leads the group on project planning,

implementation control and monitoring.
Financial manager - carries out budget expenditures of the
project, prepares relevant financial statements, keeps accounting records
and advises the project manager on financial issues.
Supply manager - ensures the purchase of goods required within
the framework of the project and carries out general supply issues.

A contract manager is a person responsible for such work as the

preparation, conclusion, control over the implementation of contracts and
subcontracts, conducting negotiations. The manager under contracts, at
the same time, regulates relations between customers and executors,
requires the performance of the work stipulated by the contracts.

General contractor - is the main legal entity that accepts the

package of proposals submitted by the customer on the implementation of
the project and is responsible for the performance of work and the
achievement of the goal under the contract.
Supplier - is a person who is responsible for equipping the project
with the goods required for its implementation under contracts.
Authorities - is the party that controls compliance with
environmental, social and Public requirements in the implementation of
projects and ensures the protection of state interests.

Manufacturer - is the party responsible for the final product of the

project and forming the marketing policy of the product, realizing the
receipt of income as a result of its sale. The manufacturer participates in
all phases of the project, establishes cooperative relations with the project
participants.
Buyer - a legal entity or an individual who forms the requirements
for the project product, determines the demand for the product on the
market and buys the final product.
 At the expense of the buyer, the cost incurred on the project is paid,
even the project participants can additionally receive their own income.

IPMA ICB STANDARDS:

Parties of interest
"Parties with interest" are persons or groups who are interested in
the implementation or success of the project, as well as those who are
attached to the project work. Parties with interest is a term specifically
defined in ISO standards and accepted by the ICB, while “Stakeholder” is
a synonymous word used for parties with interest, as well as the terms
“customer” or “customer” are also used as stakeholders.
The project manager must determine the parties to which he is
interested in their interests and the sequence of their work in terms of the
materiality of the project.
The study of “interested parties”in the project as an element of
competence will increase the possibilities of successful implementation of
the project. According to the project context, philosophy, it is carried out
in a limited environment and adapted to this environment to satisfy the
needs of the parties with interest. Therefore, in order to achieve the goal,
the management of project tasks and work is needed.
By providing assistance to the project manager, interested parties
should take care of the development of formal or informal relationships
between all persons collaborating within the project (companies,
agencies, managers, experts, employees and others).
All parties with interest can directly or indirectly influence the
project. The interests of the parties, the competence of the organization
and project management practices, as well as their standards, affect the
implementation and development of the project.
Project managers must be responsible for maintaining information
regarding the parties of interest and the persons representing them. Such
situations occur when the party of greater interest or its representative is
replaced by another party or representative.
 LECTURE 4
The life path of the project.
Any project has a certain life path, going through various stages
from the moment of its creation to the time of its closure. Together, these
stages represent the “life path of the project”. In most literature and
international standards, this term is denoted as “Project Life cycle”
(Project Life cycle).
Any project begins with any “idea”and usually consists of 4 (four)
stages: concept (initial stage), development (project development stage),
implementation (project implementation stage) and closure (final project
completion stage).
Resources

Idea Concept Development Execution Closure Time

Figure 1. Project life path (Standard 1)

The graph of the “life path of the project”shown in Figure 1 is a classic and
more widespread form of description. Apparently, according to these standards, the
“idea” is not included in the life path of the project. Therefore, according to these
standards, the “idea” is not included in the costs of the project and funds are not
allocated for it, and therefore the mentioned stage is not reflected in the project budget
as a separate item. But according to some standards” idea " the life of the project
it is included in its path and, therefore, the life path of the project is made up of 5
(five) main stages: idea, concept, development, implementation and closure.
Resources
 Idea Concept Development Execution Closure Time

Figure 2. Project life path (Standard 2)

In this case, since the “idea” is part of the life path of the project,
its cost is included in the project budget. For this reason, the emergence
of new projects in countries that comply with these standards is
stimulated by this method the number of innovation projects is more
numerous.
The number of stages of the project depends on its nature, the
professionalism of the team staff and the conditions of its formation. The
development process of projects and its main component is usually the
same for all projects.
The implementation of the project is planned by the time and the
degree of its activity, including the appropriation of the resources
included in it (Figure 2). Each project has a beginning and an end, and in
the process, appropriate resources are mastered by managing certain
changes in the life path of projects. The schedule of the project's life path
has its own peculiarity, that is, in the initial phases, the activity is weak,
the intensity is new. Because of this, the spent resources increase
monotonously, in which there is a sharp increase in the execution phase,
and in the final phase it gradually goes down, becoming equal to zero.
Special knowledge, management methods and tools are required for the
project to go through different phases in the life path.
As mentioned, each project has a specific environment. In the
environment of projects, the closest to him is the “parent organization”of
the project. The organization in which the project is implemented is
called the “parent organization” of this project. Since the project is
connected with the production of any product, it is closely connected,
first of all, with the “life path of the product”.
Thus, “the project's own life path”, “the parent organization of the
project” and “the product's life path” each individually have a clear
boundary and a special mixed relationship. (Figure 3).
One of the main conditions for determining the field of activity of
projects, the concept of management, its leader and team personnel is the
clarification of its boundary.
 Resources

The life path of the project. Product life path. Time

Let's consider each of the 4 (four) phases that cover the life path of
the project separately:
1) Conception phase. In this phase, the concept of the project is
developed and its philosophy is disclosed. The concept of the project
includes:
- analysis of the mission of the project and similar projects,
collection of information about it;
- to change the situation and to confirm the need to change the
current situation;
- to determine the purpose, technical task and result of the project;
- determining the requirements, limitations, conditions and
criterion of the project;
- to identify risks in the project;
- to determine the environment and participants of the project;
- to determine the required time, resources, management methods.

2) Development phase. During the development phase of the project,

the project is being developed, its main components are identified and
preparatory work is planned for its implementation. The following works
are performed here:
- the head of the project is appointed;
- the command staff of the project is determined;
- the requirements of the project customer are studied, other
participants are identified and contracts are concluded;
- conclusion of contracts on sale and purchase;
- the final result and product of the project are determined;
- product quality standards are determined;
- the structure of the project is being developed;
- the main works are performed;
- the required resources are determined;
- the work plan is being prepared;
 - the hierarchical structure of the project is established the
decompositional structure of works (WBS) is prepared;
- the calendar plan of the project is being prepared;
- the budget of the project is determined;
- project management procedure and monitoring system are
determined;
- "project presentation mechanism is being developed;
- for the purpose of the continuation of the project, an agreement is
reached.

3)Execution phase. In this phase, the multiplicity of works carried

out to achieve the objective of the project is envisaged and the following
are carried out:
- the full launch of the management system;
- performance of works;
- coordination of project participants;
- stimulation of the project team staff;
- "to comply with the technical specification of the project and
design it in detail;
- operational management and planning of the division of Labor;
- implementation of a system of control over the performance of
work;
- implementation of material and technical support of the project;
- the fulfillment of the work envisaged in the project;
- implementation of project monitoring, coordination of work,
forecasting and regulation work;
- quality control of work in the project;
- management of time, price and other parameters in the project;
- the immediate solution of the problems that have arisen.

4) Closing phase. During this period of the project, the final goal is
achieved, the result is achieved, conflicts are resolved, and the project is
closed. This phase is made up of the following works:
- planning and closing of the project completion process;
- testing of the final product of the project;
- personnel training for the newly created facility;
- transfer of the object to the customer, commissioning and
preparation of documents related to these works;
- finalization of the project and evaluation of the result;
- preparation of final documents;
- finalization and closure of work on the project;
- resolution of conflict issues;
- realization of unused resources;
 - creation of a knowledge base about the project and its
implementation;
- the release of the command staff of the project.

LECTURE 5
The structure of the project. 
Models and types of project structure.

Determining the purpose of the project, the work to be done within

the framework of the project, the costs and the structure of the project in
order to implement their planning and control process is considered one
of the necessary issues.
Within the framework of the project, the project is organized in a
sequence based on the principle of subordination from the highest level to
the lowest level, which is described in the form of a hierarchy and the set
of interconnected elements and processes is called the structure of the
project.
For the purpose of Project Management, various structural models
are formed that cover its full life cycle. These models are the parent
structure of the project which is built on the basis of the” structure of
project work". For this reason, the structure of the project is considered
one of the main required issues in the management process.
Figure 1 gives an example of the structure of the project, in which
4 levels and 2 decomposable (fragmentation) hierarchies of the picture
are also depicted.
(Here, “L” indicates the relationships between jobs or tasks in the
project, and “F” indicates the relationships between jobs).
L1
 Figure 1. Tree-shaped structure of the project

The structure of the projects must meet the following requirements:

1. In the hierarchical structure of the project, all elements must be
characterized by the corresponding parameters.
2. The number of parameters characterizing one element in the
hierarchy structure of the project should be the same as the number of
parameters characterizing another element.
3. In the hierarchy structure of the project, the elements of the
lowest level should be described in more detail. For example, the volume
of work, price, required resources, their relationship with executors, other
elements, etc.
The procedure for establishing contacts between project
participants and conducting paperwork is carried out on the basis of its
structure. For this reason, despite minor structural changes, a structure
accepted from beginning to end is used in the life cycle of the project.
Project management methods are based mainly on the project itself,
which is structured and obeys all formal rules, logical relationships.
Therefore, one of the main conditions for structuring a project is the
coding of structural elements. This Code must be reflected in all
documentation of the project. These documents include technological,
economic, financial, organizational, managerial and other types of
documents. Prices, time, resources, executors and other elements based
on the structural code of the project elements form the basis of the
calculation methodology and inform all participants with the required
information.
The structure of the project is described in the form of a
hierarchical in various aspects, broken down into several levels. In
addition, several other structural models are also built on the basis of its
parent structure for Project Management. Structural models differ from
each other according to the principle of decomposition. Of these, the
more common models are the following:
- Administrative Management Structure;
- Functional Management Structure;
- Mixed Structure.
The structural model of administrative management is built mainly
for the purpose of performing work (tasks) and usually describes its
general appearance, determining at the initial stage of the project.
There are several principles in the formation of the structure of the
project:
a) structural models are the set of works designed to perform
projects. In accordance with international standards, these models are
called WBS (Work Breakdown structure), that is, the decomposition
structure of works.
b) depending on the scale and degree of complexity of the project,
the levels of its hierarchical structure change. Usually the hierarchical
structure of the project is described at 6-8 levels, and in more complex
projects, the structure is described at 10-12 levels. However, according to
a few general rules, the upper level of the decomposed structural model
(WBS) of a project describes its functions, and the lower level simply
describes the work.

The overall structural model of the project is described in 3 (three)

basic levels:
 - Upper level (general program): the role of the project within
the program, its location and relationship with other projects are
indicated.
- Secondary level (project-general task-tasks): characterizes the
functional part of the project.
 -Lower level (complex of Works - work): describes the sequence
of execution of work in the project and the relationship between them.

Structural models play an important role in project management

procedures. The formation of structural models of the project in all
directions is considered as creating favorable conditions for more prompt
and accurate management of this project. The number of structural
models of the project is formed on the basis of its concept and covers
various areas. For example:
- goals structure;
- structure of jobs (tasks) ;
- costs and resources structure;
- executors structure;
- distribution of responsibilities (defendants) structure;
 - structure on risk elements;
- and so on.

LECTURE 6
Implementation of the structure of the project.

One of the main conditions for the successful implementation of

the project is the correct formation of its structures. Structural models are
used to solve various issues in the full life cycle of the project. In the
process of Project Management, appropriate models are used in the
following cases:
- project goal analysis;
- selection, analysis, evaluation and establishment of alternative
decisions in project implementation;
- planning in advance based on the models of the project";
- to determine the price, time and resources of work;
- general analysis of the project;
- the business plan of the project;
- the project organization mechanism;
- systematization of project documents;
- the calendar plan of the project;
- schedule of movement of techniques and mechanisms envisaged
in the project;
- the conclusion and management of contracts;
- risk analysis and consideration;
- operational planning of work;
- monitoring of the project;
- regulation of project work;
 - management of project facilities;
- design of execution models and graphs, analysis of results and use
of existing practices.

Project structures
Portfolio, program and project managers coordinate various
structures in the respective areas.
The portfolio (in many cases, sub-portfolios) includes various
types of projects and programs, costs, risks, profits, time constraints,
dimensions, strategic importance, innovations, territory efficiency, and
other parameters. The portfolio manager must be able to analyze the
portfolio data and submit them to the higher governing body by various
methods for their verification, decision-making. The joint Organization of
projects and programs included in the portfolio is carried out within the
framework of a single activity, and after the completion of the project, as
well as programs, they are sanctioned and removed from the portfolio.
Programs are small-scale portfolios, as well as consisting of
relevant projects and related work. Unlike a portfolio, programs are
executed within a limited time frame and provide relevant benefits.
Projects can be divided into components according to different
components, for example, such as the hierarchical structure of work,
project organization, project costs, data and the structure of documents.
Project structures are the main mechanism that serves to form
certain rules within the project. Hierarchical structures provide for the
interconnection of the components of the project and the establishment of
relationships between them on the basis of the principle of subordination.
Jobs they can be broken down according to tasks, small group of
tasks and directions of activity. According to these works and groups,
resources should be distributed, work should be planned, costs should be
estimated, work schedules should be drawn up, work should be assigned,
supervised and completed. A report on the works and actual costs must be
made, and then received by the management of Project, program and
portfolio managers.
The project organization represents the work of the organization,
which includes individual parts of the project and members of the project
(sub-project) team, that is, depending on the type of project, it provides
planning, financial issues, Infrastructure, Information and communication
technologies, research and development strategies, procurement and
supply procedures, solution of issues such as product and result
management. Each of the sub-projects (modules) has a project manager
or team members. In the event that the project manager or team members
do not have sufficient experience, they should be informed in more detail
about the structures of the project so that all aspects are covered.
 The project is divided into different phases during the “crisis path",
reflecting intermediate final results, key decision-making stages (stopping
or continuing), investment decisions and other issues.

Costs are divided into internal and external costs in terms of the
time spent, non-discretionary and discretionary costs, capital costs in
comparison with income.
Information relating to the project can be divided into facts used in
the formation of decisions made, knowledge derived from data and
formed on the basis of data. If this knowledge is complex and
voluminous, a database of related information can be created and survey
and analysis tools can be used to conduct their research.
Documentation related to the project the documentation related to
the definition of the project, its management plan, meetings of various
types of team members, monitoring of the project, analysis of the
executors, the final results of the project, etc.such parameters must
comply with the standard forms. Also, documents must be reviewed,
stored in a physical and electronic archive with restricted access.

Recommendations for the project manager:

1. Analyze the Portfolio, Program or project and identify the
relevant structures.
2. Assign a person in charge to each structure.
3. Determine the requirements for each structure and their
activities.
4. Develop appropriate methods for presenting structures.
5. Carefully work out, analyze and select structures.
6. Inform and supervise the structures of the project.
7. Ensure the confidentiality of structures.
8. Document the accumulated knowledge and apply it to future
portfolios (programs) projects.