What is a Project? Definition, Features, and Types Explained

Project

Projects create productive assets. It acts as prime movers of economic development of any country. It is accomplished by performing a set of activities. For example, construction of a house is a project. A project consumes resources. The resources required for completing a project are men, material, money and time. The nature of resources is that they are limited and scarce. If a person wants to construct a house, the first thing that comes to his mind is the financial budget within which the work should be completed. Thus, resource is a feature of all projects.

 

What is project?

A complex, non-routine, one time effort limited by time, budget resources, and performance specifications designed to meet customer needs. In simple terms A project is a temporary endeavor undertaken to create a unique product or service. 

The temporary nature of projects indicates that a project has a definite beginning and end. The end is reached when the project’s objectives have been achieved, when the project is terminated because its objective will not or cannot be met, when the need for the project on longer exists. A project may also be terminating if the client wishes to terminate the project. Every project creates a unique product, service or result. The outcome of the project may be tangible or intangible in nature. 

A project can create

1. A product can be either a component of another item, an enhancement of an item, or an end item in itself.
2. A service or capacity to perform a service for e.g., a business function that supports production or distribution.
3. An improvement in the existing product or service lines for e.g. A six-sigma project undertaken to reduce defects
4. A result, such as outcome or document for e.g., a research project that develops knowledge that can be used to determine whether a trend exists or a new process will benefit society.

Examples of projects includes but are not limited to 

1. Developing a new product, service, or result
2. Effecting a change in the structure, processes, staffing, or style of an organization
3. Developing or acquiring a new or modified information system either in form of hardware or software
4. Conducting a research effort whose outcome will be aptly recorded
5. Constructing a building, industrial plant, or infrastructure 
6. Implementing, improving or enhancing existing business processes and procedures 

Definition of Project

1. A project is an economic activity with a well-defined objective with certain durations and gains to entrepreneurs.
2. According to Harrison - "a project can be defined as non-routine, non-repetitive, one-off undertaking, normally with discrete time, financial and technical performance goals"

Classification of Project

Following are the major types of projects 

1. Quantifiable and Non-quantifiable projects: Projects for which a plausible quantitative assessment of benefits can be made art called “quantifiable projects”. Projects concerned with industrial development; power generation fall in this category. On the contrary, Projects for which a plausible quantitative assessment of benefits cannot be made are called “non-quantifiable projects”. Non-quantifiable projects are those where such assessment is not; possible e.g., Health education, defence etc.
2. Sectoral projects: Sectoral projects have their specific sectors, such as Agriculture and similar sector Irrigation and power sector. Sectoral means relating to the various economic sectors of a society or to a particular economic sector.
• Industry and Mining sector,
• Transport and Communication sector,
• The social services sector,
• Miscellaneous sector.
3. Techno-Economic projects: This type of classification includes factors intensity-oriented classification, causation• oriented classification, and magnitude-oriented classification.
• Factor intensity-oriented classification - In this category, projects are either capital intensive or labour-intensive depending upon their size & investment pattern. For e.g.: IT project or service rendering project is labour-intensive depending on their size and investment pattern.
• Cause-oriented - In this category, projects are based on either the availability of raw material or demand for that project. For e.g.- Power project required, abundant water, steel plant required iron ore as raw material.
• Magnitude oriented classification - Here the size of an investment is considered depending on the investment. A project can be classified as a tiny unit investment to 25 lakhs Small-scale unit investment up to 1 crore. Medium scale enterprise investment up to 5 crores or more.

Project Characteristics 

1. Objectives – a project has a set of objectives or a mission. For example, the objective of a project may be construction of a highway connecting two cities. Once the construction of highway completed the projects comes to an end.
2. Life cycle – a project has a life cycle. The life cycle consists of the following stages- conception stage, design stage, implementation stage, commissioning stage.
3. Definite time limit - a project has a definite time limit. It cannot continue ever. Construction of a highway connecting two cities is a project which is to be completed within a given time limit.
4. Uniqueness – a project is unique and no two projects are similar.
5. Teamwork – a project normally consists of diverse areas. There will be personnel specialized in their respective areas. Coordination among the diverse areas calls for teamwork. Hence, a project can be implemented only with teamwork.
6. Complexity - Technology survey, hiring the right kind of people, arranging for financial resources, and execution of the project in the time e.tc. Contribute to the complexity of the project.
7. Sub-contracting – It will be advantageous if it reduces the complexity of the project so that the project manager can coordinate the remaining activities of the project more effectively.
8. Rational choice – project is done after making a study of all the available avenues for investing resources and rational choice among the available avenues made.
9. Multidisciplinary – projects are multidisciplinary in nature. They make use of the knowledge and expertise of different kinds of people.

Steps in managing a project

1. Define the problem - Identify the problem to be solved by the project. It helps to visualize the desired end result. What will be different? What will you see, hear, taste, touch, or smell? What client need is being satisfied by the project?
2. Develop solution options - How many different ways might you go about solving the problem? Of the available alternatives, which do you think will best solve the problem? Is it more or less costly than other suitable choices? Will it result in a complete or only a partial fix?
3. Plan the project. Planning is answering questions - what must be done, by whom, for how much, how, when, and so on.
4. Execute the plan - Once the plan is drafted, it must be implemented. Interestingly, people sometimes go to great effort to put together a plan, and then fail to follow it. If a plan is not followed, there is not much point in planning, is there?
5. Monitor and control progress - Plans are developed so that you can achieve your end result successfully. Unless progress is monitored, you cannot be sure you will succeed.
6. Close the project - Once the destination has been reached, the project is finished, but there is a final step that should be taken. Some people call it an audit, others a post-mortem.

Project Constraints

Every project is constrained in different ways. Some project managers focus on scope, time, and cost constraints. These limitations are sometimes referred to in project management as the triple constraint.

To create a successful project, project managers must consider scope, time, and cost and balance these three often-competing goals. They must consider the following:

1. Scope: What work will be done as part of the project? What unique product, service, or result does the customer or sponsor expect from the project?
2. Time: How long should it take to complete the project? What is the project’s schedule?
3. Cost: What should it cost to complete the project? What is the project’s budget? What resources are needed? Other people focus on the quadruple constraint, which adds quality as a fourth constraint.
4. Quality: How good does the quality of the products or services need to be? What do we need to do to satisfy the customer?

Balancing the “Project Success Triangle” which shown in diagram

1. A clear understanding of customer priorities
2. “People” skills
3. Thorough planning
4. An organized, structured process

Type of project 

1. Based on the type of activity – project can be classified as industrial project and non-industrial projects. Industrial projects are set up of production of some goods. Investments in non-industrial projects are made by government and the benefits from such projects are enjoyed by the entire society of people.
2. Based on the location of the project – projects can be classified as national projects and international projects. National projects are those set up within the national boundaries of a country, while international projects are set up in others countries. Handling of international projects needs more expertise and greater efforts in view of higher risk.
3. Based on project completion time – projects can be classified into two types, normal projects and crash project. Normal projects are those for which there is no constraint on time. Crash project are those which are to be completed within a stipulated time, even at the cost of ending up with a higher project cost.
4. Based on need – projects can be classified under the following groups, based on the need for project- new project, balancing project, expansion project, modernization project, replacement project.
5. Based on size – project can be classified based on the size into three categories – small projects, medium project and large projects. As per directives of the govt. of India, project with investment on plant and machinery up to rupees 1 crore are categorized as small project while those with investment in plant and machinery above rupees 100 crore are categorized as large project. Project with investment limit between these two categories are medium scale projects.
6. Based on ownership – projects can be classified into private sector projects, public sector projects and joint venture projects. A private sector project is one in which the ownership is completely in the hands of the project promoters and investors. Profit maximization is the prime objective of private sector projects. Public sector project is those that are owned by the state. The evolution and growth of public sector enterprises is the natural consequence of the efforts of government for undertaking developments in a country. Joint sector projects are those in which the ownership is shared by the government and by private entrepreneurs. The main consideration for government's investment in joint sector projects is to make use of the managerial talents and marketing skills of the private entrepreneurs.

Conclusion

Understanding projects is essential for effective management and successful outcomes. A project is defined as a temporary endeavor undertaken to create a unique product, service, or result. Key characteristics include a defined beginning and end, specific objectives, and the allocation of resources. 

Projects can be classified into various categories, such as construction, IT, research and development, and more, each with its own unique challenges and requirements. By grasping these fundamental aspects, professionals can enhance their project management skills, leading to improved efficiency and success in their endeavors. Embracing this knowledge is crucial for anyone looking to excel in today’s dynamic work environment.

FAQ's

Meaning of Project?

A unique set of co-ordinated activities, with definite starting and finishing points, undertaken by an individual or organization to meet specific objectives within defined schedule, cost and performance parameters. In simple words, A Project is a discrete piece of work that has a clear objective, a finite duration and the involvement of more than one person for Examples Building a new house, introducing a new system and launching a new product.

How programs are different from projects?

Program means, a series of coordinated, related, multiple projects that continue over an extended time and are intended to achieve a goal. A higher-level group of projects targeted at a common goal for example 

1. Project – completion of a required course in project management 
2. Program – completion of all courses required for a BSE

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