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Chapter 1 · 6 hours

Introduction of Project and Project Management

IOE past exam questions

Past questions and answers

36 questions set from this chapter, 6 of them more than once; 4 are most repeated (set, or a close variant set, in 3 or more exams). Most repeated first.

  • Most repeated · 5 of 26 exams
  • Asked 5 times
  • 2072 Chaitra · 5 marks
  • 2070 Chaitra · 5 marks
  • 2070 Chaitra (old course) · 4 marks
  • 2066 Bhadra (old course) · 4 marks
  • 2068 Baisakh (old course) · 8 marks

How are project goals or objectives set? Explain the goal setting criteria (SMART) with the aid of a suitable example.

Answer

Goals and objectives are set by understanding the need or problem, consulting the stakeholders, and stating the end result in clear, measurable terms. The usual sequence is:

  1. Identify the need or problem and the stakeholders.
  2. State the broad goal (the long-term purpose).
  3. Break the goal into specific objectives (short-term, measurable results).
  4. Test each objective against the SMART criteria.
  5. Get approval from the client and revise if resources or constraints do not match.

SMART criteria

LetterCriterionMeaning
SSpecificClear and unambiguous; says what, where and for whom
MMeasurableQuantity, quality or cost can be checked
AAchievablePossible with available resources and technology
RRealistic / RelevantMatches the need and the organisation's capacity
TTime-boundHas a deadline or time frame

Example

Poor objective: "Improve the road to the village."

SMART objective: "Construct a 12 km, 5.5 m wide black-topped road from X to Y, within 24 months, at a cost not exceeding NRs 40 crore, meeting Department of Roads standards."

  • Specific: 12 km black-topped road from X to Y.
  • Measurable: length, width, cost and standard are given.
  • Achievable: the equipment, contractor and budget are available.
  • Realistic: the village needs year-round access.
  • Time-bound: 24 months.
  • Most repeated · 5 of 26 exams
  • Asked 5 times
  • 2073 Shrawan · 10 marks
  • 2066 Bhadra (old course) · 8 marks
  • 2081 Bhadra · 6 marks
  • 2076 Chaitra · 6 marks
  • 2072 Chaitra · 4 marks

Discuss the project phases and life cycle, giving examples of the activities carried out in the different phases and stages of the life cycle.

Answer

A project life cycle is the sequence of phases through which a project moves from conception to closure. Each phase has its own activities and ends with a decision point.

The project life cycle is the series of phases a project passes through from its start to its end. Each phase ends with a review (gate) before the next begins. The common four-phase model is:

 Initiation -> Planning -> Implementation -> Termination
 (Concept)    (Definition)  (Execution)       (Closure)

 Effort
   ^        ___
   |      /    \___
   |   __/         \__
   |__/               \___
   +--------------------------> Time
PhaseMain work
Initiation / conceptIdentify need, pre-feasibility, objectives, preliminary cost, go or no-go decision
Planning / definitionDetailed design, WBS, schedule, budget, resource and risk plans, contracts
Implementation / executionMobilisation, procurement, construction or manufacturing, monitoring and control
Termination / closureTesting, handover, final payment, documentation, lessons learned, release of resources

Activities in each phase

Initiation (concept):

  • Identify the need or problem and collect basic data.
  • Generate and screen project ideas; select the best option.
  • Carry out pre-feasibility and feasibility studies (technical, economic, financial, environmental, social).
  • Define objectives, scope and main deliverables.
  • Estimate preliminary cost, time and resources.
  • Identify stakeholders and the funding source.
  • Prepare the project proposal or concept note and take the go or no-go decision.
  • Appoint the project manager and form the core team.

Planning (definition):

  • Detailed survey and design; prepare drawings and specifications.
  • Prepare the work breakdown structure (WBS), schedule (bar chart, CPM, PERT) and budget.
  • Plan resources, quality, communication and risk.
  • Prepare tender documents, evaluate bids and sign contracts.
  • Obtain approvals, permits and land.

Implementation (execution): mobilisation, procurement, construction, monitoring of time, cost and quality, quality testing, payments and reporting.

Termination (closure): final inspection, commissioning, handover with as-built drawings, final payment, demobilisation, completion report and lessons learned.

Example: for a bridge, initiation covers traffic study and feasibility; planning covers design, estimate and tender; implementation covers foundation, piers, deck and approach roads; termination covers load test, handover and final bill.

  • Most repeated · 4 of 26 exams
  • Asked 4 times
  • 2078 Bhadra · 6 marks
  • 2072 Chaitra · 1+4 marks
  • 2066 Bhadra (old course) · 8 marks
  • 2070 Chaitra (old course) · 2+3+3 marks

Define a project. Explain the characteristics of a project with appropriate examples.

Answer

Definition

A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.

Characteristics

CharacteristicMeaningExample
Specific objectiveDefined purpose and deliverableComplete a 40 m span bridge
Definite life spanFixed start and end dateStart Shrawan 2080, finish Asar 2082
Unique / non-routineNot a repetitive task; each project differs in site, design, conditionsTwo dams are never identical
Progressive elaborationDetails are developed step by step as information increasesConcept, feasibility, detailed design, drawings
Temporary teamTeam formed for the project and dispersed at the endEngineers, contractors, consultants
Limited resourcesFixed budget, manpower, equipment, timeBudget of NRs 50 crore
Uncertainty and riskFuture events cannot be fully predictedLandslide, price rise, delay in land acquisition
Interdependent tasksActivities depend on each otherFoundation before columns
Customer / stakeholdersClient, funder, users, publicDepartment of Roads, donor, villagers
Multi-disciplinary and cross-functionalDifferent specialists work togetherCivil, electrical, environment, finance
  • Most repeated · 3 of 26 exams
  • Asked 3 times
  • 2074 Chaitra · 8 marks
  • 2081 Bhadra · 5 marks
  • 2082 Baisakh · 5 marks

Explain in detail how a project operates in a dynamic environment, with a suitable technical example. (All the activities progressing according to schedule is seldom the case in a project.)

Answer

A project is not carried out in a closed laboratory; it works in an environment that keeps changing. Because of this, activities seldom progress exactly as scheduled.

Sources of change

  • Political: change of government, policy, strikes and bandhs.
  • Economic: price escalation, exchange rate, interest rate.
  • Social: local objections, land and compensation disputes.
  • Natural: monsoon, floods, landslides, earthquakes (such as 2015).
  • Technical: design change, new technology, unexpected geology.
  • Resource: delay in funds, material shortage, equipment breakdown, labour shortage.
  • Stakeholder: client's change orders, delayed approvals.

Technical example: a hydropower tunnel project

Plan: 1,500 m headrace tunnel excavated in 12 months. In practice, poor rock is met at 600 m, so extra support is needed and progress falls. Heavy rain floods the adit and a fund release is delayed. The schedule slips, cost rises and the design of the lining is revised.

How the project manager responds

  1. Monitor progress and environment regularly.
  2. Update the schedule and budget (re-planning).
  3. Keep contingency time and money.
  4. Use risk management and change control.
  5. Maintain communication with all stakeholders.

Hence planning must be flexible, and control must be continuous.

  • Asked 2 times
  • 2070 Asar · 4+6 marks
  • 2076 Chaitra · 3+4 marks

Define or differentiate bilateral, multilateral and joint venture projects with examples. Discuss the external environment in which a project is operated and the major elements that influence it.

Answer

Bilateral, multilateral and joint venture projects

  • Bilateral project: financed or implemented by two countries (or a country and one agency) under an agreement. Example: Pokhara International Airport (loan from China Exim Bank), or roads built with Indian grant assistance.
  • Multilateral project: financed by several countries through an international agency. Example: projects funded by the World Bank, ADB or UN agencies, such as the Kathmandu Valley Water Supply improvement.
  • Joint venture project: two or more parties (companies or a company and government, often foreign and local) share capital, risk, management and profit. Example: Bhote Koshi hydropower, Upper Tamakoshi with local and foreign partners, Himal Cement.
BasisBilateralMultilateralJoint venture
PartiesTwo countries or agenciesMany countries via an agencyTwo or more firms
FundingGrant or loan from one donorPooled funds of an institutionEquity of partners
ControlBy agreement of the twoBy the institution's rulesBy partners' shares

External environment of a project

A project environment is the set of all internal and external factors, conditions and forces that surround a project and influence its success. It is the context in which the project is planned and carried out.

External environment

ElementInfluence on a project
Political / legalGovernment policy, stability, laws, licences, taxes (e.g. Hydropower policy, Public Procurement Act)
EconomicInflation, interest rates, exchange rate, price of materials, market demand
Social / culturalCommunity acceptance, local participation, resettlement, labour attitude
TechnologicalAvailability of new methods, equipment and skills
Natural / physicalGeology, climate, floods, earthquakes, terrain
CompetitiveCompetitors, alternative suppliers
FinancialBanks, donors, investors, capital market

Task (immediate) environment

Clients, funders, suppliers, contractors, consultants, labour unions, government agencies, local community and competitors. These directly supply resources and affect achievement of objectives, but also impose limits (rules, deadlines, conditions).

Internal environment

Organisation structure, culture, management style, resources and skills of the project team.

A project manager must scan the environment continuously, adapt plans, and manage stakeholders and risks.

  • Asked 2 times
  • 2076 Asoj · 2+4 marks
  • 2074 Asoj · 1+4 marks

Define project. Describe a joint venture project and the possibility of technology transfer (and capital transfer) through it, with a suitable example.

Answer

Project

A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.

Joint venture project and technology transfer

A joint venture project is one in which two or more organisations, usually a local and a foreign partner, combine capital, technology and management for a specific project and share profit, loss and control according to an agreement.

Technology and capital transfer

  • The foreign partner brings advanced technology, machinery, design skill and often capital.
  • The local partner brings land, local knowledge, labour, permits and market access.
  • Local engineers and workers learn new methods by working with experts, so skills and know-how are transferred.
  • Capital flows in through the foreign equity share and loans, and a part of the profit remains in the country.
  • A training clause and a plan to hand over operation to local staff make the transfer effective.

Example: a Nepali company and a foreign hydropower developer form a joint venture to build a 100 MW plant. The foreign partner supplies turbines, design and finance; the Nepali partner handles licences, land and civil works. Nepali engineers are trained in operation and maintenance, and after the agreed period the plant is handed over to Nepal.

  • 2075 Chaitra · 2+5 marks

What is a project? Explain its dimensions and characteristics.

Answer

Project

A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.

Dimensions of a project

A project is viewed in three basic dimensions, called the project triangle, which must be balanced:

          Quality / Scope
              /\
             /  \
            /    \
           /______\
        Time      Cost
  • Time: start and finish dates, schedule and milestones.
  • Cost: the budget, including resources and cash flow.
  • Quality / scope: the deliverables and performance standard.

Changing one dimension affects the others: shortening the time usually raises the cost or lowers the quality. Other dimensions often added are risk, resources and stakeholder satisfaction.

Characteristics

CharacteristicMeaningExample
Specific objectiveDefined purpose and deliverableComplete a 40 m span bridge
Definite life spanFixed start and end dateStart Shrawan 2080, finish Asar 2082
Unique / non-routineNot a repetitive task; each project differs in site, design, conditionsTwo dams are never identical
Progressive elaborationDetails are developed step by step as information increasesConcept, feasibility, detailed design, drawings
Temporary teamTeam formed for the project and dispersed at the endEngineers, contractors, consultants
Limited resourcesFixed budget, manpower, equipment, timeBudget of NRs 50 crore
Uncertainty and riskFuture events cannot be fully predictedLandslide, price rise, delay in land acquisition
Interdependent tasksActivities depend on each otherFoundation before columns
Customer / stakeholdersClient, funder, users, publicDepartment of Roads, donor, villagers
Multi-disciplinary and cross-functionalDifferent specialists work togetherCivil, electrical, environment, finance
  • 2076 Chaitra · 5 marks

Discuss, citing project characteristics, how a project can be differentiated from other permanent systems.

Answer

A project is a temporary system for a unique result, whereas a permanent system (for example a hospital, a factory in operation, an electricity utility) keeps running to give continuous output.

BasisProjectPermanent system
LifeTemporary, definite start and endContinuous, no fixed end
ObjectiveSpecific, one-time deliverableOngoing operation and routine output
WorkUnique, non-repetitiveRepetitive, routine
TeamTemporary, disbanded at completionPermanent staff
OrganisationOften a matrix or project teamFunctional hierarchy
UncertaintyHigh, new situation each timeLow, established procedure
PlanningDetailed plan for each projectStandard procedures and policies
ControlTime, cost and quality against the planEfficiency and output standards
ExampleConstruction of a 50 bed hospitalDaily running of the hospital

When the project is complete, the product is handed over to the permanent system for operation. A project is therefore recognised by its definite objective, limited time, unique nature, temporary team and constrained resources.

  • 2080 Baisakh · 6 marks

Explain the characteristics of a project by comparing it with a final year project.

Answer

A final year engineering project (for example "Design of a 20 kW micro-hydro plant") is a small but true project, so it shows every characteristic of a project.

CharacteristicIn a final year project
Specific objectiveDesign and report of a given system, with defined deliverables
Definite start and endStarts in 7th semester and ends at the final viva with a deadline
Unique, non-routineThe topic and site/data differ from other batches and from regular classes
Temporary teamA group of 3-4 students formed for this work and dissolved after submission
Limited resourcesFixed time, small budget, laboratory and software access
Progressive elaborationIdea, proposal, literature, design, analysis, report, with details developed step by step
Uncertainty and riskData not available, equipment failure, member absent, supervisor change
Interdependent tasksData collection before design; design before drawings
StakeholdersSupervisor, department, examiners, the client or industry
Management neededPlanning (Gantt chart), progress meetings, control against the deadline

Compared with regular coursework (a permanent, repetitive activity), the final year project is temporary, unique and goal-oriented. The same ideas of scope, schedule, cost and risk apply to a large field project; only the scale differs.

  • 2082 Baisakh · 2+5 marks

List out the characteristics of a project. Elaborate with an example the "specific task not routinely performed" and "progressive elaboration" characteristics of a project.

Answer

Characteristics of a project

  • Specific objective and deliverable
  • Definite start and end (limited life)
  • Unique task, not routinely performed
  • Progressive elaboration
  • Temporary team or organisation
  • Limited resources (time, money, manpower)
  • Uncertainty and risk
  • Interdependent activities
  • Multiple stakeholders and customer orientation

Specific task not routinely performed

A project produces something new each time, so it is not a repeated daily operation. Even for similar works, the site, soil, design and conditions differ.

Example: constructing a suspension bridge over the Karnali. Its geology, span, river flow and community are unlike any earlier bridge, so a fresh plan and method statement are required. In contrast, repairing potholes every day is routine work.

Progressive elaboration

Details are developed gradually in steps as more information becomes available, while the project moves forward.

Example: for a hydropower scheme, first only the idea and capacity (say 30 MW) are known. The pre-feasibility study gives approximate layout; the feasibility study fixes the headworks and powerhouse; the detailed design gives drawings, quantities and a precise estimate; construction drawings are issued as work proceeds. At each stage the scope and cost become more accurate.

  • 2068 Baisakh (old course) · 8 marks

Define a project and classify it. Name the characteristics of a project and describe what you mean by a temporary team/organization in a project.

Answer

Definition

A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.

Classification

BasisTypesExample
SectorAgriculture, industry, energy, transport, health, educationIrrigation canal, cement factory
Size / costSmall, medium, large, megaFoot trail vs Melamchi water project
OwnershipPublic, private, public-private (PPP)Government road, private hotel, BOOT hydropower
Nature of resourcesLabour intensive, capital intensiveRural road by user groups, a dam
ParticipationDomestic, bilateral, multilateral, joint ventureSee below
PurposeProduction, service, infrastructure, socialFactory, school, bridge
TechnologyConventional, high technologyManual brick kiln vs automated plant
TimeShort term, medium term, long term6 month school building vs 10 year highway
LocationUrban, rural, regional, nationalSmart city, village water supply

Characteristics

  • Specific objective
  • Definite life span
  • Unique, non-routine task
  • Progressive elaboration
  • Temporary team
  • Limited resources
  • Uncertainty and risk
  • Interdependent activities

Temporary team / organisation

A project needs people from different fields for a limited time. A team is formed when the project starts: the project manager is appointed, and engineers, surveyors, accountants and workers are drawn from the parent organisation or hired from outside. Once the project is completed, the team is disbanded and the members return to their departments or move to other projects.

Features: it is created for one objective, has a leader with clear authority, members come with different skills, and it has no permanent status. Example: the team formed to build a district hospital, which dissolves after handover. Because the group is new, team building, role definition and communication are essential.

  • 2065 Shrawan (old course) · 8 marks

Explain project and the characteristics of a project. Explain goal setting (SMART).

Answer

Project

A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.

Characteristics of a project

CharacteristicMeaningExample
Specific objectiveDefined purpose and deliverableComplete a 40 m span bridge
Definite life spanFixed start and end dateStart Shrawan 2080, finish Asar 2082
Unique / non-routineNot a repetitive task; each project differs in site, design, conditionsTwo dams are never identical
Progressive elaborationDetails are developed step by step as information increasesConcept, feasibility, detailed design, drawings
Temporary teamTeam formed for the project and dispersed at the endEngineers, contractors, consultants
Limited resourcesFixed budget, manpower, equipment, timeBudget of NRs 50 crore
Uncertainty and riskFuture events cannot be fully predictedLandslide, price rise, delay in land acquisition
Interdependent tasksActivities depend on each otherFoundation before columns
Customer / stakeholdersClient, funder, users, publicDepartment of Roads, donor, villagers
Multi-disciplinary and cross-functionalDifferent specialists work togetherCivil, electrical, environment, finance

Goal setting (SMART)

Goals and objectives are set by understanding the need or problem, consulting the stakeholders, and stating the end result in clear, measurable terms. The usual sequence is:

  1. Identify the need or problem and the stakeholders.
  2. State the broad goal (the long-term purpose).
  3. Break the goal into specific objectives (short-term, measurable results).
  4. Test each objective against the SMART criteria.
  5. Get approval from the client and revise if resources or constraints do not match.

SMART criteria

LetterCriterionMeaning
SSpecificClear and unambiguous; says what, where and for whom
MMeasurableQuantity, quality or cost can be checked
AAchievablePossible with available resources and technology
RRealistic / RelevantMatches the need and the organisation's capacity
TTime-boundHas a deadline or time frame

Example

Poor objective: "Improve the road to the village."

SMART objective: "Construct a 12 km, 5.5 m wide black-topped road from X to Y, within 24 months, at a cost not exceeding NRs 40 crore, meeting Department of Roads standards."

  • Specific: 12 km black-topped road from X to Y.
  • Measurable: length, width, cost and standard are given.
  • Achievable: the equipment, contractor and budget are available.
  • Realistic: the village needs year-round access.
  • Time-bound: 24 months.
  • 2082 Bhadra · 4+4 marks

Define a project and illustrate the types of projects with examples. Describe the effect of project management for the smooth running of a project.

Answer

Definition

A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.

Types of projects

BasisTypesExample
SectorAgriculture, industry, energy, transport, health, educationIrrigation canal, cement factory
Size / costSmall, medium, large, megaFoot trail vs Melamchi water project
OwnershipPublic, private, public-private (PPP)Government road, private hotel, BOOT hydropower
Nature of resourcesLabour intensive, capital intensiveRural road by user groups, a dam
ParticipationDomestic, bilateral, multilateral, joint ventureSee below
PurposeProduction, service, infrastructure, socialFactory, school, bridge
TechnologyConventional, high technologyManual brick kiln vs automated plant
TimeShort term, medium term, long term6 month school building vs 10 year highway
LocationUrban, rural, regional, nationalSmart city, village water supply

Examples of other types: labour intensive (rural trail), capital intensive (hydropower), joint venture (cement plant with foreign partner), multilateral (World Bank funded roads).

Effect of project management on smooth running

  • Clear objectives and scope: everyone knows what is to be done.
  • Proper planning: WBS, schedule and budget prevent confusion.
  • Efficient use of resources: less waste of labour, material and machines.
  • Control: delays and cost overruns are found early and corrected.
  • Coordination: the work of contractors, consultants and departments is linked.
  • Risk reduction: risks are identified and handled before they cause loss.
  • Quality assurance: work meets specifications.
  • Better decisions and communication: timely information to the client and team.
  • Result: completion on time, within budget and to the required quality, and stakeholder satisfaction.
  • 2079 Bhadra · 6 marks

What are the different bases of project classification and the types of projects on those bases?

Answer

BasisTypesExample
SectorAgriculture, industry, energy, transport, health, educationIrrigation canal, cement factory
Size / costSmall, medium, large, megaFoot trail vs Melamchi water project
OwnershipPublic, private, public-private (PPP)Government road, private hotel, BOOT hydropower
Nature of resourcesLabour intensive, capital intensiveRural road by user groups, a dam
ParticipationDomestic, bilateral, multilateral, joint ventureSee below
PurposeProduction, service, infrastructure, socialFactory, school, bridge
TechnologyConventional, high technologyManual brick kiln vs automated plant
TimeShort term, medium term, long term6 month school building vs 10 year highway
LocationUrban, rural, regional, nationalSmart city, village water supply

One project can be placed in several classes at once. For example, a rural road built by users is a public sector, infrastructure, labour intensive, small, domestic project.

  • 2073 Shrawan · 10 marks

Classify a project and discuss its characteristics in detail, including the importance of a good project environment.

Answer

Definition

A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.

Classification

BasisTypesExample
SectorAgriculture, industry, energy, transport, health, educationIrrigation canal, cement factory
Size / costSmall, medium, large, megaFoot trail vs Melamchi water project
OwnershipPublic, private, public-private (PPP)Government road, private hotel, BOOT hydropower
Nature of resourcesLabour intensive, capital intensiveRural road by user groups, a dam
ParticipationDomestic, bilateral, multilateral, joint ventureSee below
PurposeProduction, service, infrastructure, socialFactory, school, bridge
TechnologyConventional, high technologyManual brick kiln vs automated plant
TimeShort term, medium term, long term6 month school building vs 10 year highway
LocationUrban, rural, regional, nationalSmart city, village water supply

Characteristics

CharacteristicMeaningExample
Specific objectiveDefined purpose and deliverableComplete a 40 m span bridge
Definite life spanFixed start and end dateStart Shrawan 2080, finish Asar 2082
Unique / non-routineNot a repetitive task; each project differs in site, design, conditionsTwo dams are never identical
Progressive elaborationDetails are developed step by step as information increasesConcept, feasibility, detailed design, drawings
Temporary teamTeam formed for the project and dispersed at the endEngineers, contractors, consultants
Limited resourcesFixed budget, manpower, equipment, timeBudget of NRs 50 crore
Uncertainty and riskFuture events cannot be fully predictedLandslide, price rise, delay in land acquisition
Interdependent tasksActivities depend on each otherFoundation before columns
Customer / stakeholdersClient, funder, users, publicDepartment of Roads, donor, villagers
Multi-disciplinary and cross-functionalDifferent specialists work togetherCivil, electrical, environment, finance

Importance of a good project environment

A favourable environment gives the project what it needs and reduces uncertainty. A good environment means:

  • stable and supportive government policy and laws, which speeds approvals and attracts investors;
  • availability of finance, skilled labour, materials and equipment at reasonable cost;
  • community support and good relations, which reduce disputes and delays;
  • reliable infrastructure (roads, power, communication) for site works;
  • suitable natural conditions and a plan for disasters;
  • competent partners, contractors and consultants.

A poor environment (political instability, strikes, price rise, hostile locals) causes delay, cost overrun and sometimes failure. So the environment must be studied before the project is selected and monitored throughout its life.

  • 2070 Chaitra · 3 marks

Differentiate between labour intensive and capital intensive projects with examples.

Answer

BasisLabour intensiveCapital intensive
Main inputHuman labourMachines and money
EmploymentHighLow
Capital costLowHigh
Speed and qualitySlower, variable qualityFaster, uniform quality
Suitable whereLabour is cheap and plentifulLabour is scarce or the work is large and technical
ExampleRural road by hand, canal digging, trail improvementHydropower dam, tunnel, airport, steel plant
  • 2071 Chaitra · 2+4+4 marks

Define project. Elaborate labour intensive, capital intensive, joint venture and multilateral projects. Explain the various elements of task environment.

Answer

Project

A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.

Types of projects

BasisLabour intensiveCapital intensive
Main inputHuman labourMachines and money
EmploymentHighLow
Capital costLowHigh
Speed and qualitySlower, variable qualityFaster, uniform quality
Suitable whereLabour is cheap and plentifulLabour is scarce or the work is large and technical
ExampleRural road by hand, canal digging, trail improvementHydropower dam, tunnel, airport, steel plant
  • Bilateral project: financed or implemented by two countries (or a country and one agency) under an agreement. Example: Pokhara International Airport (loan from China Exim Bank), or roads built with Indian grant assistance.
  • Multilateral project: financed by several countries through an international agency. Example: projects funded by the World Bank, ADB or UN agencies, such as the Kathmandu Valley Water Supply improvement.
  • Joint venture project: two or more parties (companies or a company and government, often foreign and local) share capital, risk, management and profit. Example: Bhote Koshi hydropower, Upper Tamakoshi with local and foreign partners, Himal Cement.

Elements of the task environment

The task environment is the part of the external environment that directly interacts with the project.

ElementRole
Client / ownerDefines requirements, pays, approves
Funding agenciesBanks, donors; provide money with conditions
SuppliersMaterials, equipment, services
Contractors and consultantsExecute and supervise the work
Labour and unionsSupply and affect workforce availability
Government agenciesLicences, regulations, taxes, approvals
Local communityLand, acceptance, local labour
CompetitorsCompete for resources and market
Users / customersFinal beneficiaries of the output
  • 2072 Kartik

Define project and explain its characteristics in brief. What are the major differences between project management and traditional management? Explain the external environment of the project.

Answer

Project and its characteristics

A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.

CharacteristicMeaningExample
Specific objectiveDefined purpose and deliverableComplete a 40 m span bridge
Definite life spanFixed start and end dateStart Shrawan 2080, finish Asar 2082
Unique / non-routineNot a repetitive task; each project differs in site, design, conditionsTwo dams are never identical
Progressive elaborationDetails are developed step by step as information increasesConcept, feasibility, detailed design, drawings
Temporary teamTeam formed for the project and dispersed at the endEngineers, contractors, consultants
Limited resourcesFixed budget, manpower, equipment, timeBudget of NRs 50 crore
Uncertainty and riskFuture events cannot be fully predictedLandslide, price rise, delay in land acquisition
Interdependent tasksActivities depend on each otherFoundation before columns
Customer / stakeholdersClient, funder, users, publicDepartment of Roads, donor, villagers
Multi-disciplinary and cross-functionalDifferent specialists work togetherCivil, electrical, environment, finance

Project management vs traditional management

BasisProject managementTraditional (functional) management
PurposeOne-time unique objectiveContinuous routine operation
DurationTemporaryPermanent
OrganisationTemporary team, often matrixFixed functional hierarchy
AuthorityProject manager across departmentsFunctional heads
WorkNon-repetitiveRepetitive
PlanningDetailed plan per project; time/cost/quality focusAnnual plan, policies
ControlAgainst schedule, budget and scopeAgainst standards and profit
RiskHigh uncertaintyLow and predictable
TechniquesWBS, CPM/PERT, earned valueBudgeting, standard procedures

External environment of the project

A project environment is the set of all internal and external factors, conditions and forces that surround a project and influence its success. It is the context in which the project is planned and carried out.

External environment

ElementInfluence on a project
Political / legalGovernment policy, stability, laws, licences, taxes (e.g. Hydropower policy, Public Procurement Act)
EconomicInflation, interest rates, exchange rate, price of materials, market demand
Social / culturalCommunity acceptance, local participation, resettlement, labour attitude
TechnologicalAvailability of new methods, equipment and skills
Natural / physicalGeology, climate, floods, earthquakes, terrain
CompetitiveCompetitors, alternative suppliers
FinancialBanks, donors, investors, capital market

Task (immediate) environment

Clients, funders, suppliers, contractors, consultants, labour unions, government agencies, local community and competitors. These directly supply resources and affect achievement of objectives, but also impose limits (rules, deadlines, conditions).

Internal environment

Organisation structure, culture, management style, resources and skills of the project team.

A project manager must scan the environment continuously, adapt plans, and manage stakeholders and risks.

  • 2080 Bhadra · 2+6 marks

Discuss the scope of project engineering. Explain in detail how a project operates in a dynamic environment with a suitable example.

Answer

Scope of project engineering

Project engineering covers the technical and managerial work needed to carry a project from idea to completion and operation:

  • Identification, formulation and appraisal of projects (technical, economic, financial, environmental, social).
  • Project planning: WBS, scheduling with bar chart, CPM and PERT, resource planning.
  • Design, estimating and preparation of tender and contract documents.
  • Implementation: procurement, construction supervision, quality assurance.
  • Monitoring, evaluation and control of time, cost and quality.
  • Risk analysis and management.
  • Project financing and capital budgeting.
  • Closure, handover, operation and maintenance, and post-project evaluation.

It applies to civil, electrical, mechanical and industrial projects alike.

Project in a dynamic environment

A project is not carried out in a closed laboratory; it works in an environment that keeps changing. Because of this, activities seldom progress exactly as scheduled.

Sources of change

  • Political: change of government, policy, strikes and bandhs.
  • Economic: price escalation, exchange rate, interest rate.
  • Social: local objections, land and compensation disputes.
  • Natural: monsoon, floods, landslides, earthquakes (such as 2015).
  • Technical: design change, new technology, unexpected geology.
  • Resource: delay in funds, material shortage, equipment breakdown, labour shortage.
  • Stakeholder: client's change orders, delayed approvals.

Technical example: a hydropower tunnel project

Plan: 1,500 m headrace tunnel excavated in 12 months. In practice, poor rock is met at 600 m, so extra support is needed and progress falls. Heavy rain floods the adit and a fund release is delayed. The schedule slips, cost rises and the design of the lining is revised.

How the project manager responds

  1. Monitor progress and environment regularly.
  2. Update the schedule and budget (re-planning).
  3. Keep contingency time and money.
  4. Use risk management and change control.
  5. Maintain communication with all stakeholders.

Hence planning must be flexible, and control must be continuous.

  • 2079 Baisakh · 2+5 marks

What is project environment? How can you say that a project operates under a dynamic environment? Explain with an example.

Answer

A project environment is the set of all internal and external factors, conditions and forces that surround a project and influence its success. It is the context in which the project is planned and carried out.

External environment

ElementInfluence on a project
Political / legalGovernment policy, stability, laws, licences, taxes (e.g. Hydropower policy, Public Procurement Act)
EconomicInflation, interest rates, exchange rate, price of materials, market demand
Social / culturalCommunity acceptance, local participation, resettlement, labour attitude
TechnologicalAvailability of new methods, equipment and skills
Natural / physicalGeology, climate, floods, earthquakes, terrain
CompetitiveCompetitors, alternative suppliers
FinancialBanks, donors, investors, capital market

Task (immediate) environment

Clients, funders, suppliers, contractors, consultants, labour unions, government agencies, local community and competitors. These directly supply resources and affect achievement of objectives, but also impose limits (rules, deadlines, conditions).

Internal environment

Organisation structure, culture, management style, resources and skills of the project team.

A project manager must scan the environment continuously, adapt plans, and manage stakeholders and risks.

Why a project operates in a dynamic environment

The political, economic, social, technical and natural conditions around a project keep changing during its life, which may last several years. These changes alter the requirements, cost and schedule, so a project cannot follow a fixed plan.

Example: a highway project in Nepal. During construction the government changes the compensation rate, cement and fuel prices rise, a monsoon landslide blocks the road, local people stop work demanding jobs, and the client orders an extra bridge. Each event forces re-planning of time and cost. Hence the project manager must monitor the environment and update plans regularly.

  • 2075 Chaitra · 5 marks

Explain the different environments within which a project needs to be conducted.

Answer

A project environment is the set of all internal and external factors, conditions and forces that surround a project and influence its success. It is the context in which the project is planned and carried out.

External environment

ElementInfluence on a project
Political / legalGovernment policy, stability, laws, licences, taxes (e.g. Hydropower policy, Public Procurement Act)
EconomicInflation, interest rates, exchange rate, price of materials, market demand
Social / culturalCommunity acceptance, local participation, resettlement, labour attitude
TechnologicalAvailability of new methods, equipment and skills
Natural / physicalGeology, climate, floods, earthquakes, terrain
CompetitiveCompetitors, alternative suppliers
FinancialBanks, donors, investors, capital market

Task (immediate) environment

Clients, funders, suppliers, contractors, consultants, labour unions, government agencies, local community and competitors. These directly supply resources and affect achievement of objectives, but also impose limits (rules, deadlines, conditions).

Internal environment

Organisation structure, culture, management style, resources and skills of the project team.

A project manager must scan the environment continuously, adapt plans, and manage stakeholders and risks.

  • 2074 Asoj · 1+4 marks

What is project environment? How does the political environment affect a project in Nepal?

Answer

Project environment is the set of internal and external conditions, such as political, economic, social, technological and natural factors, that surround and influence a project.

Effect of the political environment in Nepal

The political environment includes government policy, laws, stability and the behaviour of political parties. In Nepal it affects projects in these ways:

  • Policy and law: hydropower, tourism, mining and procurement depend on policy, e.g. the Public Procurement Act, Hydropower Development Policy, Electricity Act. Frequent change creates uncertainty.
  • Government instability: frequent changes of government and ministers delay decisions, approvals, budget release and project priorities.
  • Bandh, strikes and protests: stop work and transport; labour and local groups make demands.
  • Budget and funding: projects depend on annual budgets and political priority; donors react to stability.
  • Federalism: three tiers of government (federal, provincial, local) create overlapping approvals and changed responsibilities.
  • Land acquisition and compensation: political pressure often delays right-of-way.
  • Contractor selection and corruption risk: interference can reduce quality and cause delay.
  • Positive side: supportive policy, tax incentives, and government guarantees (such as a power purchase agreement) encourage investment.

Hence the manager should keep good relations with authorities, include political risk in the risk plan and allow time contingency.

  • 2081 Baisakh · 4 marks

Define project environment and explain how the task environment of any project provides resources and influences the ability to achieve the project's objectives even though it also imposes limitations.

Answer

The project environment is the sum of all external and internal factors that surround a project and affect its outcome. The task environment is the part of it that deals directly with the project: client, funding agencies, suppliers, contractors, consultants, labour, government agencies, local community and competitors.

How it provides resources

  • Clients and funders give money and approvals.
  • Suppliers give materials, equipment and services.
  • The labour market gives skilled and unskilled workers.
  • Government gives licences, land, infrastructure and policy support.
  • The community gives local labour and goodwill.

These inputs are essential to reach the objectives of time, cost and quality.

How it limits

  • Funders attach conditions and release money in stages.
  • Laws, standards and permits restrict methods and timing.
  • Suppliers may delay or raise prices; labour may strike.
  • The community may object to land use or environmental effects.
  • Competitors compete for the same scarce resources.

Therefore the project manager must manage relations with each task-environment element, using it as a source of support while planning for its constraints.

  • 2079 Bhadra · 6 marks

Describe with a suitable example, considering a running project of Nepal, how the different operating/task environments make the project more complex and uncertain.

Answer

A project operates inside several environments, each with its own changing forces. Their interaction makes the project more complex (many parties and rules) and uncertain (outcomes cannot be predicted).

Example: Upper Tamakoshi Hydropower Project (456 MW)

EnvironmentEffect on the project
PoliticalPolicy changes, delay in approvals, strikes and bandhs
EconomicRise in prices of cement, steel and fuel; exchange rate affecting foreign loans; financing from the Employees Provident Fund and banks
SocialResettlement, compensation, local demands for jobs and benefits
TechnicalLong tunnels, difficult geology, imported turbines needing specialist technology
NaturalMonsoon floods, landslides and the 2015 earthquake damaged works and access
Task environmentContractors, suppliers, lenders and government agencies each follow their own interests and schedules
LegalEnvironmental clearance, land acquisition and licence conditions

The project was delayed and its cost increased because these environments changed during construction. The manager had to revise the schedule, seek extra funds, repair damage and manage many stakeholders, which shows the added complexity and uncertainty.

  • 2081 Baisakh · 4 marks

Differentiate between goal and objective of any project, giving a suitable example.

Answer

BasisGoalObjective
NatureBroad, general statement of purposeSpecific, detailed statement of what will be achieved
TimeLong termShort or medium term
MeasurabilityOften qualitative, hard to measureQuantitative and measurable
NumberUsually one or fewSeveral objectives support a goal
RoleGives directionGives targets to be reached
ExampleImprove rural access and the local economyBuild a 12 km gravel road within 18 months at NRs 25 crore

The goal gives direction; the objectives, when achieved, together achieve the goal.

  • 2076 Asoj · 2+6 marks

Differentiate between the goal and objective of a project. Explain the goal setting criteria of a project with a suitable example.

Answer

Goal vs objective

BasisGoalObjective
NatureBroad, general statement of purposeSpecific, detailed statement of what will be achieved
TimeLong termShort or medium term
MeasurabilityOften qualitative, hard to measureQuantitative and measurable
NumberUsually one or fewSeveral objectives support a goal
RoleGives directionGives targets to be reached
ExampleImprove rural access and the local economyBuild a 12 km gravel road within 18 months at NRs 25 crore

Goal setting criteria

Goals and objectives are set by understanding the need or problem, consulting the stakeholders, and stating the end result in clear, measurable terms. The usual sequence is:

  1. Identify the need or problem and the stakeholders.
  2. State the broad goal (the long-term purpose).
  3. Break the goal into specific objectives (short-term, measurable results).
  4. Test each objective against the SMART criteria.
  5. Get approval from the client and revise if resources or constraints do not match.

SMART criteria

LetterCriterionMeaning
SSpecificClear and unambiguous; says what, where and for whom
MMeasurableQuantity, quality or cost can be checked
AAchievablePossible with available resources and technology
RRealistic / RelevantMatches the need and the organisation's capacity
TTime-boundHas a deadline or time frame

Example

Poor objective: "Improve the road to the village."

SMART objective: "Construct a 12 km, 5.5 m wide black-topped road from X to Y, within 24 months, at a cost not exceeding NRs 40 crore, meeting Department of Roads standards."

  • Specific: 12 km black-topped road from X to Y.
  • Measurable: length, width, cost and standard are given.
  • Achievable: the equipment, contractor and budget are available.
  • Realistic: the village needs year-round access.
  • Time-bound: 24 months.
  • 2067 Asar (old course) · 4+4 marks

Explain the project family tree with a suitable example. Explain also the criteria of goal setting in any project.

Answer

Project family tree

The project family tree is a hierarchy that breaks the project from its broad purpose down to individual tasks. It shows how each lower level supports the level above.

Mission / Goal
  |
  +-- Objective 1
  |     +-- Programme / Sub-project 1.1
  |     |     +-- Activity / Task 1.1.1
  |     |     +-- Activity / Task 1.1.2
  |     +-- Sub-project 1.2
  +-- Objective 2
        +-- Sub-project 2.1

Example (rural electrification):

  • Goal: improve rural livelihood through electricity.
  • Objective: supply power to 2,000 households within 3 years.
  • Sub-projects: micro-hydro plant; distribution line; household connection.
  • Tasks: civil works, turbine installation, pole erection, wiring, training.

The tree makes the link between goals and work clear and leads to the WBS.

Criteria of goal setting

LetterCriterionMeaning
SSpecificClear and unambiguous; says what, where and for whom
MMeasurableQuantity, quality or cost can be checked
AAchievablePossible with available resources and technology
RRealistic / RelevantMatches the need and the organisation's capacity
TTime-boundHas a deadline or time frame

Example

Poor objective: "Improve the road to the village."

SMART objective: "Construct a 12 km, 5.5 m wide black-topped road from X to Y, within 24 months, at a cost not exceeding NRs 40 crore, meeting Department of Roads standards."

  • Specific: 12 km black-topped road from X to Y.
  • Measurable: length, width, cost and standard are given.
  • Achievable: the equipment, contractor and budget are available.
  • Realistic: the village needs year-round access.
  • Time-bound: 24 months.
  • 2068 Baisakh (old course) · 8 marks

Name the project life cycle and explain how you set goals in a project by giving an example of one goal and verifying it with the criteria of goal setting.

Answer

Project life cycle

The project life cycle has four phases: initiation, planning, implementation and termination (also called concept, definition, execution and closure).

Initiation -> Planning -> Implementation -> Termination

Setting a goal, with example

Steps: identify the need, state the broad goal, convert it into a specific objective, and test it against SMART criteria.

Need: villagers of ward 5 have no safe drinking water.

Goal: provide safe drinking water to ward 5.

Objective: "Construct a gravity-flow water supply system with a 50 m³ reservoir and 25 tap stands serving 300 households within 12 months at a cost not exceeding NRs 2.5 crore, meeting national drinking water quality standards."

Verification with criteria

CriterionCheck
SpecificGravity system, reservoir size, 25 taps, 300 households stated
MeasurableVolume, number of taps, households, cost and quality standard are countable
AchievableA perennial spring is available and design is standard
RealisticFits the demand (about 45 lpcd) and the budget of the local government
Time-bound12 months

The objective satisfies all criteria, so it is acceptable.

  • 2080 Baisakh · 6 marks

Define the project in your own words and explain its phases.

Answer

A project, in simple words, is a one-time, planned piece of work with a clear objective, a start and end date, a limited budget and a team formed only for it, such as building a school or a bridge.

Phases of a project

The project life cycle is the series of phases a project passes through from its start to its end. Each phase ends with a review (gate) before the next begins. The common four-phase model is:

 Initiation -> Planning -> Implementation -> Termination
 (Concept)    (Definition)  (Execution)       (Closure)

 Effort
   ^        ___
   |      /    \___
   |   __/         \__
   |__/               \___
   +--------------------------> Time
PhaseMain work
Initiation / conceptIdentify need, pre-feasibility, objectives, preliminary cost, go or no-go decision
Planning / definitionDetailed design, WBS, schedule, budget, resource and risk plans, contracts
Implementation / executionMobilisation, procurement, construction or manufacturing, monitoring and control
Termination / closureTesting, handover, final payment, documentation, lessons learned, release of resources

Each phase produces an output that is checked before the next phase starts. Example (school building): initiation is need survey and approval; planning is design, estimate and tender; implementation is construction; termination is handover and final bill.

  • 2067 Asar (old course) · 8 marks

List out the different phases of the project life cycle. Explain in detail the activities to be done in the implementation phase of the project life cycle.

Answer

Phases of the project life cycle

  1. Initiation (concept)
  2. Planning (definition)
  3. Implementation (execution)
  4. Termination (closure)

Activities in the implementation phase

The implementation (execution) phase is where the plan is turned into the actual product and usually takes the largest share of cost and effort.

  1. Mobilisation: site office, camps, machinery, manpower, materials.
  2. Procurement of materials, equipment and subcontractors.
  3. Construction or production work as per drawings and specifications.
  4. Resource management: allocation of labour, equipment and materials, and cash flow.
  5. Monitoring and control of progress, cost and quality; comparing actual with planned and taking corrective action.
  6. Quality assurance, testing and inspection.
  7. Change and variation management, claims and payments to contractors.
  8. Safety, environmental management and community relations.
  9. Regular reporting and coordination meetings with the client and stakeholders.
  • 2080 Bhadra · 1+2+5 marks

What is a project? What are its main attributes? Write the major activities carried out in the implementation phase of a project.

Answer

What is a project?

A project is a temporary endeavour, with a definite start and end, undertaken by a team to create a unique product, service or result within limited time, cost and quality constraints. Examples: building the Kathmandu-Terai Fast Track, a 100 MW hydropower plant, a bridge, or developing a hospital information system.

Main attributes

  • Specific objective
  • Definite start and end
  • Unique, non-routine work
  • Temporary team
  • Limited resources (cost, time, manpower)
  • Progressive elaboration
  • Uncertainty and risk
  • Interrelated activities and stakeholders

Activities in the implementation phase

The implementation (execution) phase is where the plan is turned into the actual product and usually takes the largest share of cost and effort.

  1. Mobilisation: site office, camps, machinery, manpower, materials.
  2. Procurement of materials, equipment and subcontractors.
  3. Construction or production work as per drawings and specifications.
  4. Resource management: allocation of labour, equipment and materials, and cash flow.
  5. Monitoring and control of progress, cost and quality; comparing actual with planned and taking corrective action.
  6. Quality assurance, testing and inspection.
  7. Change and variation management, claims and payments to contractors.
  8. Safety, environmental management and community relations.
  9. Regular reporting and coordination meetings with the client and stakeholders.
  • 2074 Chaitra · 4+4 marks

Describe whether the specified job/task is a project. Write the major activities carried out in the implementation phase of a project.

Answer

Is the specified job a project?

The question refers to a given job or task, which is not stated here. A job is a project if it has all these tests:

TestQuestion
ObjectiveIs there a specific result or deliverable?
TimeIs there a definite start and end?
UniquenessIs it non-routine, not repeated daily?
ResourcesAre budget, manpower and time limited?
TeamIs a temporary team formed for it?
UncertaintyAre there risks and unknowns?

Example: constructing a 3-storey office building meets all tests, so it is a project. Daily cleaning of the same office, running a bus service or preparing monthly salary do not (they are repetitive operations with no end), so they are not projects.

Major activities in the implementation phase

The implementation (execution) phase is where the plan is turned into the actual product and usually takes the largest share of cost and effort.

  1. Mobilisation: site office, camps, machinery, manpower, materials.
  2. Procurement of materials, equipment and subcontractors.
  3. Construction or production work as per drawings and specifications.
  4. Resource management: allocation of labour, equipment and materials, and cash flow.
  5. Monitoring and control of progress, cost and quality; comparing actual with planned and taking corrective action.
  6. Quality assurance, testing and inspection.
  7. Change and variation management, claims and payments to contractors.
  8. Safety, environmental management and community relations.
  9. Regular reporting and coordination meetings with the client and stakeholders.
  • 2079 Baisakh

What are the major activities that are required to be carried out during the initiation phase of a project?

Answer

The initiation phase begins the life cycle. Its purpose is to decide whether the project should be started.

  • Identify the need or problem and collect basic data.
  • Generate and screen project ideas; select the best option.
  • Carry out pre-feasibility and feasibility studies (technical, economic, financial, environmental, social).
  • Define objectives, scope and main deliverables.
  • Estimate preliminary cost, time and resources.
  • Identify stakeholders and the funding source.
  • Prepare the project proposal or concept note and take the go or no-go decision.
  • Appoint the project manager and form the core team.

The output is an approved proposal or project charter that authorises the planning phase.

  • 2081 Baisakh · 4 marks

Describe the activities to be performed in the termination phase of the project life cycle.

Answer

The termination (closure) phase formally ends the project. Main activities:

  1. Completion and final inspection; correction of defects (punch list).
  2. Testing and commissioning of the facility.
  3. Handover to the client or operator with as-built drawings and manuals; training of operators.
  4. Final accounts, final bill, release of retention money and bank guarantees after the defect liability period.
  5. Settlement of claims and contracts; closing of purchase orders.
  6. Release of staff, equipment and site; demobilisation.
  7. Preparation of the project completion report, documentation and records.
  8. Post-project review and lessons learned; evaluation of objectives achieved.
  • 2078 Bhadra · 3 marks

Write a short note on project management and its functions.

Answer

Project management is the application of knowledge, skills, tools and techniques to project activities so that the objectives are met within time, cost and quality. A project manager leads the temporary team and coordinates all resources.

Functions of project management

  1. Planning: setting objectives, scope, WBS, schedule, budget.
  2. Organising: forming the team, assigning roles and authority, allocating resources.
  3. Staffing: selecting and training people.
  4. Directing / leading: motivating, guiding and communicating with the team.
  5. Coordinating: linking the work of different groups and contractors.
  6. Controlling: monitoring progress, comparing with plan, taking corrective action.
  7. Risk and quality management.
  8. Closing: handover and review.

Effect: good management gives smooth running through clear responsibility, early detection of delay and cost overrun, better use of resources, fewer conflicts and higher chance of finishing on time and within budget.

  • 2065 Shrawan (old course) · 8 marks

Explain monitoring, evaluation and controlling and the project life cycle.

Answer

Project life cycle

The project life cycle is the series of phases a project passes through from its start to its end. Each phase ends with a review (gate) before the next begins. The common four-phase model is:

 Initiation -> Planning -> Implementation -> Termination
 (Concept)    (Definition)  (Execution)       (Closure)

 Effort
   ^        ___
   |      /    \___
   |   __/         \__
   |__/               \___
   +--------------------------> Time
PhaseMain work
Initiation / conceptIdentify need, pre-feasibility, objectives, preliminary cost, go or no-go decision
Planning / definitionDetailed design, WBS, schedule, budget, resource and risk plans, contracts
Implementation / executionMobilisation, procurement, construction or manufacturing, monitoring and control
Termination / closureTesting, handover, final payment, documentation, lessons learned, release of resources

Monitoring

Monitoring is the continuous collection and checking of information on progress, cost, quality and resource use while the project runs, to know whether activities follow the plan.

Evaluation

Evaluation is the periodic and systematic judgement of the project's relevance, efficiency, effectiveness, impact and sustainability against its objectives. It may be done at mid-term, at completion (ex-post) and later.

Controlling

Controlling compares actual performance with the plan, finds variances and takes corrective action to bring the project back on track (or revises the plan).

Plan -> Execute -> Monitor -> Compare -> Correct
  ^                                        |
  +----------------------------------------+

Relation to the life cycle

  • Initiation: feasibility evaluation (ex-ante).
  • Planning: baseline set for control.
  • Implementation: monitoring and control are most intense.
  • Termination: final evaluation and lessons learned.

Questions from Old Question Collection (CE 701) (IOE CE 701 exam papers from 2065 Shrawan to 2082 Bhadra). Answers are written for this site; check them against your class notes.

Chapter titles and hours from the IOE syllabus ↗