Who wants to study business administration it's useful presentation . It's a master's course which prepared by Mizan Tepi university and the course given to students of masters . If there is anything unclear about the course, you can ask, read and use it. I wish you all a good reading!! የንግድ ሥራ አስተዳደርን ማን ማጥናት ይፈልጋል ጠቃሚ አቀራረብ . በሚዛን ቴፒ ዩኒቨርሲቲ የተዘጋጀ የማስተርስ ኮርስ እና የማስተርስ ተማሪዎች የተሰጠ ኮርስ ነው። በትምህርቱ ላይ ግልጽ ያልሆነ ነገር ካለ መጠየቅ፣ ማንበብ እና መጠቀም ይችላሉ። መልካም ንባብ ለሁላችሁም እመኛለሁ!! Who wants to study business administration it's useful presentation . It's a master's course which prepared by Mizan Tepi university and the course given to students of masters . If there is anything unclear about the course, you can ask, read and use it. I wish you all a good reading!!

1. CHAPTER ONE
Overview of Project Concepts
1

2. Chapter Coverage
 Definitions and meanings of project
 Characteristics of a project
 Project levels
 Project classification
 Projects, plans and programs
 Importance and dimensions of projects
 Project life cycle models
 Project management - overview
2

3. A Project
A unique process, consisting of a set of
coordinated and controlled activities with
start and finish dates, undertaken to achieve
an objective conforming to specific
requirements including constraints of time,
cost and resources
(Lockyer and Gordon,
1996)

4. A project is a unique, complex, and non-routine endeavor
or effort to produce a set of deliverables within clearly
specified time, cost and quality constraints to meet
customer needs.
4
TIME COST
QUALITY

5. Key terms
Unique process
Coordinated and controlled activities
Start and finish dates
To achieve an objective
Specific requirements
Constraints of time, cost and resources
5

6. Characteristics of a project
1. A project involves a single, definable purpose, end-item, or result, usually
specified in terms of cost, schedule, and performance requirements.
2. Every project is unique in that it requires doing something different than
was done previously. Even in “routine” projects such as home construction,
variables such as terrain, access, zoning laws, labor market, public services,
and local utilities make each project different. A project is a one-time activity,
never to be exactly repeated again.
3. Projects are temporary activities. An ad hoc organization of personnel,
material, and facilities is assembled to accomplish a goal, usually within a
scheduled time frame; once the goal is achieved, the organization is disbanded
or reconfigured to begin work on a new goal.
6

7. Characteristics of a project (cont’d)
4. Projects cut across organizational lines because they need the skills and talents
from multiple professions and organizations. Project complexity often arises from
the complexity of advanced technology, which creates task interdependencies that
may introduce new and unique problems.
5. project is the process of working to achieve a goal; during the process, projects
pass through several distinct phases, called the project life cycle. The tasks,
people, organizations, and other resources change as the project moves from one
phase to the next. The organization structure and resource expenditures slowly
build with each succeeding phase; peak; and then decline as the project nears
completion..
6. Flexibility: Change and projects are synonymous. Always a project witnesses
multiples of modifications and changes in its original plans, programs and
budgets.
7

8. Why project?
projects are typically initiated for one or more of the
following reasons:
 When starting a new business
 In order to develop/modify a product or service/Responses to
competition/Desire to be more competitive
 For relocating and/or closing a facility
 For regulatory mandate/ New laws and regulations
 In order to re-engineer the process so as to reduce
complaints, reduce cycle time, and eliminate errors /For
implementing a new system or process
 To introduce new equipment, tools or techniques
 Market demand/At the request of a customer
8

9. Project Classification
Projects can take different forms based on different set of dimensions.
PROJECT LEVELS
 national level
 sector level
 project level
QUANTIFIABLITY OF PROJECT DELIVERABLES
 Quantifiable Projects
 Non-quantifiable projects
9

10. Project Classification (cont’d)
TECHNO-ECONOMIC FACTORS
 Factor-Intensity-Oriented Classification
• capital-intensive
• labor-intensive
 Causation-Oriented Classification
• demand-based
• raw material-based
 Magnitude-Oriented Classification
• large-scale
• medium-scale or
• small-scale
10

11. Project Classification (cont’d)
FINANCIAL INSTITUTIONS’ CLASSIFICATION
 New Projects
 Expansion Projects
 Modernization Projects
 Diversification Projects
SECTORAL AFFILIATION OF PROJECTS
 Agricultural and Allied sector
 Irrigation and Power sector
 Industry and Mining sector
 Transportation and Communication sector
 Social Service sector
 Hotel and Tourism
 Miscellaneous
11

12. PROJECTS AND PROGRAMS
Program is a definite plan or scheme of any sequence of operations aimed at the attainment of the planned
objectives. This explanation assumes that program is a plan of activities with general objectives that would
be derived from the development plan.
Project Program
Differences
 Specific objective General objective
 Specific project area No specific project area
 Specific beneficiaries group No specific beneficiaries group
 Clearly determined and allotted Fund No clear & detailed financial
resource allocation
 Specific lifetime No specific lifetime
Similarities: Projects and programs have similar characteristics in terms of:
 Having objective
 Requiring financial, human, material, etc. inputs
 Generating output (goods/services)
 Serving as instruments for the execution of development plans in order to develop the national economy.
12

13. PROJECT STAKEHOLDERS
Key Stakeholders
 Project Manager/s
 Customers/ End Users
 Performing Organization
 Project Management working on the Project
 Project Team Members
 Sponsors
 Influencers
Stakeholders are important to a project because:
 They can be critical in its success or failure
 They can have a much better understanding of the feasibility of
different actions and the resources required to reach certain objectives
than an outsider to the project
 Their expectations need to be managed
 They can provide important information on the progress of the project
13

14. PROJECT LIFE CYCLE – MODELS
A project is broken down into stages �
It is the cycle that defines distinct but interdependent phases through which a
project passes from its point of initiation to its completion.
Basic models:
 Lockyer describes a four phase model
 Baum’s model of project cycle
 UNIDO Project cycle
 DEPSA’s cycle
14

15. Lockyer’s Four Phase Model
�Lockyer describes a four phase model of the
project process:
 Conception - assess the feasibility of the project �
 Development - prepare the project plan
 Realisation - carry out the plan �
 Termination - close the project
15
PROJECT LIFE CYCLE – MODELS

16. PROJECT LIFE CYCLE – MODELS
Baum’s model of project cycle: Initiated by Baum in 1970, was
improved in 1978 and has been adopted by the World Bank ever since. initially
recognized four main stages, namely:
 Identification (sources: Resources , Market, Need,
technical specialists, Existing projects)
 Preparation (Pre-feasibility and feasibility studies)
 justifies whether to go ahead (Market analysis,
Technical analysis, Financial analysis, Socio-economic
analysis, Environmental analysis, Organization and
management analysis.)
16

17. PROJECT LIFE CYCLE – MODELS
Project appraisal:
 careful checking of:
 the basic data,
 assumptions
 methodology used in project preparation,
 an in-depth review of the work plan,
 cost estimates, and proposed financing,
 project's organizational and management aspects,
 finally the viability of project.
17

18. PROJECT LIFE CYCLE – MODELS
Implementation
 a critical stage of project work & perhaps the most
important part of the project cycle.
 funds are actually disbursed to get the project started and
keep running.
 Priority is to ensure that the project is carried out in the way
and within the period that was planned.
 Is where many of the real problems of projects are first
identified.
18

19. PROJECT LIFE CYCLE – MODELS
Evaluation
 compares actual progress with the plans, and judges whether the
decisions and actions taken were responsible and useful.
 The main purpose is to learn lessons for the design of future projects
and help ensure accountability.
 provides a comprehensive and detailed review of the elements of
success and failure of the project for enhancing the impact of project
work.
 may take place at several times in the life of a project.
who handles evaluation?
• Project management
• The sponsoring agency,.
• the project's administrative structure
19

20. PROJECT LIFE CYCLE – MODELS
UNIDO PROJECT CYCLE
 The Pre-Investment Phase
 Investment Phase
 Operational/Normalization Phase
1) The Pre-Investment Phase: includes
a) Identification of investment opportunities (opportunity study)
 General opportunity studies (sector approach)
 Specific Project Opportunity Studies (enterprise approach)
20

21. PROJECT LIFE CYCLE – MODELS
b) Pre-feasibility studies
 a further assessment of the project idea might be made in a pre-
feasibility study. This is to see if:
• All possible project alternatives are examined
• The project concept justifies detail study
• All aspects are critical and need in-depth investigation
• The project idea is viable and attractive or not.
 its structure should be the same as that of a detailed feasibility study.
21

22. PROJECT LIFE CYCLE – MODELS
c) Support (functional) studies
 prerequisite for, or in support of, a pre-feasibility and feasibility
studies, particularly large-scale investment proposals. They include:
• Market studies of products
• Raw materials and factory supplies studies
• Laboratory and pilot plant tests
• Location studies
• Environmental impact assessment
• Economies of scale studies
• Equipment selection studies
22

23. PROJECT LIFE CYCLE – MODELS
d) Feasibility studies
 defines and critically examines the commercial, technical, financial, economic,
and environmental prerequisites for an investment project on the basis of
alternative solutions already reviewed in the pre- feasibility study. It should
provide all data necessary for an investment decision.
e) Appraisal report
 It is considered as an independent stage of the pre-investment phase, marked
by the final investment and financing decisions taken by the project
promoters.
 It is carried out when a feasibility study is completed, where various parties
will handle their own appraisal of the investment project in accordance with
their individual objectives and evaluation of expected risks, costs, and gain.
23

24. PROJECT LIFE CYCLE – MODELS
2) The investment (construction or implementation) phase
 Negotiations and contracting
 Technology acquisition and transfer
 Engineering and contracting
 Construction
 Pre-production marketing
 Recruitment and Training personnel
 Plant commissioning and start-up
24

25. PROJECT LIFE CYCLE – MODELS
3). The operational (normalization) phase
objective: to produce goods and services for which a project is
established.
Problems: of this phase need to be considered from both a short-term
& long-term viewpoint.
25

26. PROJECT LIFE CYCLE – MODELS
DEPSA'S PROJECT CYCLE
According to the Guidelines to Project Planning in Ethiopia (1990) of
Development Project Studies Authority (DEPSA), a project cycle
comprises three major phases:
1. Pre-investment
2. Investment and
3. Operation
26

27. PROJECT LIFE CYCLE – MODELS
Each of these three phases may be divided into stages. The guideline has
divided the cycle into 6 stages.
• Identification
• Preparation pre-investment phase
• Appraisal/decision
• Implementation investment phase
• Operation operation phase
• Ex-post Evaluation
27

28. PROJECT MANAGEMENT- OVERVIEW
PROJECT MANAGEMENT – MEANING
 a dynamic process, conducted within a defined set of constraints
that organizes and utilizes appropriate resources in a controlled
and structured manner in order to achieve some clearly defined
objectives.
 Organizing and utilizing resources in a more effective and
efficient manner so that the project is completed within defined
scope, quality, time and cost constraints
28

29. PROJECT MANAGEMENT- OVERVIEW
 The application of knowledge, skills, tools, and techniques to project objectives
to meet stakeholder needs and expectations. Meaning it is the application of
knowledge, skills, tools, and techniques for:
 Scope Management
 Time Management
 Cost Management
 Quality Management
 Human Resources Management
 Communications Management
 Risk Management
 Procurement Management
 Integration Management 29

30. Scope Management
Project scope management includes the processes required to ensure that
the project addresses all the work required—and only the work
required—to complete the project successfully.
Main processes include:
 Scope planning
 Scope definition
 WBS creation
 Scope verification
 Scope control

31. Time Management
Main processes include:
 Activity definition
 Activity sequencing
 Activity resource estimating
 Activity duration estimating
 Schedule development
 Schedule control

32. Cost Management
Project cost management includes the processes required to ensure that a project team
completes a project within an approved budget.
There are four project cost management processes:
 Resource planning
 Cost estimating
 Cost budgeting
 Cost control

33. HRM
Project human resource management includes the processes required to
make the most effective use of the people involved with a project.
Main processes include:
 Human resource planning
 Acquiring the project team
 Developing the project team
 Managing the project team

34. Risk Management
Project risk management is the art and science of identifying,
analyzing, and responding to risk throughout the life of a project and in
the best interests of meeting project objectives.
Main processes include:
 Risk management planning
 Risk identification
 Qualitative risk analysis
 Quantitative risk analysis
 Risk response planning
 Risk monitoring and control

35. Communication Management
 Communications planning: Determining the information and
communications needs of the stakeholders.
 Information distribution: Making needed information available to project
stakeholders in a timely manner.
 Performance reporting: Collecting and disseminating performance
information, including status reports, progress measurement, and forecasting.
 Managing stakeholders: Managing communications to satisfy the needs and
expectations of project stakeholders and to resolve issues.

36. Procurement management
Project procurement management involves acquiring goods and services for a
project from outside the performing organization.
Processes include:
 Planning purchases and acquisitions
 Planning contracting
 Requesting seller responses
 Selecting sellers
 Administering contracts
 Closing contracts

37. Integration Management
Project managers need to use systems thinking
View things as systems, which are interacting components that work within an
environment to fulfill some purpose.
37

38. PROJECT MANAGEMENT- OVERVIEW
SKILL REQUIREMENTS IN PROJECT MANAGEMENT
 Communication skills: listening, persuading.
 Organizational skills: planning, goal-setting, analyzing.
 Team Building skills: empathy, motivation.
 Leadership skills: setting example, energy, vision (big
picture), delegation,
 Coping skills: flexibility, creativity, patience, persistence.
 Technological skills: experience, project knowledge
38

39. 39
CHAPTER TWO
Project Identification

40. 40
Definition and meaning project identification
Project identification is the systematic process for finding or locating
and screening promising project ideas from their respective sources.
In other words, project identification is the first stage in any project
cycle which is concerned about germinating or incubation promising
project ideas using appropriate method.

41. 41
Sources of project idea
There are several sources of project idea. These various sources
are broadly classified into two as:
 Macro level
 Micro level

42. 42
Sources of project idea
At the macro-level, project ideas emerge from:
 National policies, strategies & priorities as may be enunciated by
government from time to time;
 National, sectoral, sub-sectoral or regional programs supplemented by
special studies, sometimes called opportunity studies, conducted with the
explicit aim of translation of national and sectoral, sub-sectoral and
regional programs into specific projects;
 Constraints on the development process
 Government decision to correct social and regional inequalities
 A possible external threat
 Unusual events such as droughts, floods, earthquakes, hostilities, etc.
 At the macro-level, project ideas can also originate from multilateral or
bilateral development agencies

43. 43
Sources of project idea
At the micro-level, the variety of sources is equally broad. Project ideas
emanate from:
 The existence of unsatisfied demand or needs.
 The existence of unused or underutilized natural or human
resources and the perception of opportunities for their efficient
use.
 Analyze the performance of existing industries;
 Review imports and exports;
 Attend Trade fairs, exhibitions and conferences.

44. 44
Approaches to project identification
To locate project ideas from different sources one can follow one of
the following approaches.
 SWOT analysis
 PEST analysis

45. 45
Project idea screening
Once potential project ideas have been identified and before they are placed into a
detail project preparation, they should be subjected for preliminary screening. With
project idea screening, those ideas are evaluated in terms of :
Their compatibility with the promoter
Their consistency with government development plan and priority
Availability of Inputs
Adequacy of Reasonableness of costs
Acceptability of risk level.
At the end of the preliminary screening, the analyst should eliminate project ideas
that:
 Are technically unsound and risky;
 Have no market for the output;
 Have inadequate supply of inputs;
 Are very costly in relation to benefits;

46. 46
Project idea screening
For project idea screening mostly we use project rating index. To work with
project rating index the analyst should follow the following steps.
1. Identify factors relevant for project rating.
2. Assign weights to these factors (the weights are supposed to reflect
their relatives importance).
3. Rate the project proposal on various factors, using a suitable rating
scale. (Typically a 5-point scale of a 7-point scale is used for this
purpose).
4. For each factor multiply the factor rating with the factor weight to
get the factor score.
5. Add all the factor scores to get the overall project-planning index.

47. 47
Project idea screening
Porter model
 Michael Porter has argued that the profit potential of an industry
depends on the combined strength of the following five basic
competitive forces:
• Threat of new entrants
• Industry rivals
• Threat of substitute products
• Bargaining power of buyers
• Bargaining power of sellers
 According to this model, project ideas that favorably live up to these
forces should be passed to the preparation phase.