Unit 4: Introduction of Project

Introduction to Project

A project is a temporary and unique effort undertaken to create a product, service, or result. It has defined objectives, scope, timelines, resources, and deliverables.

⭐ Characteristics of a Project 

Types of Projects

Project Life Cycle

The project life cycle refers to the phases a project goes through from initiation to closure.

Concept of Deliverables

Deliverables are the measurable outputs or results produced at the end of each phase or project.

In Short, understanding the basics of projects, including their types, characteristics, and deliverables, is essential for effective project planning and execution. The project life cycle helps in managing each stage efficiently to ensure successful outcomes.

The Project Management Process

The Project Management Process refers to the set of activities and phases used to plan, execute, control, and complete a project efficiently.

🔄 Phases of Project Management

Roles of Project Team & Project Leader

👨‍💼 A. Project Leader (or Project Manager)

Project Team Members

Fundamental Components of Project Cost

Project cost includes all expenses involved in planning, executing, and closing a project.

A strong understanding of the project management process, clear roles and responsibilities, and control over project cost help ensure the success of any project. Effective planning, teamwork, and financial management are key pillars of project success.

Types of Costs in Project Management

Understanding different types of costs is essential for budgeting, controlling expenses, and planning projects. Here's a breakdown:

1. Direct Costs: Costs directly linked to the project or specific activity. Examples: Raw materials, wages of project workers, equipment used exclusively.
2. Indirect Costs: Costs are not directly linked to a single project but are spread across multiple projects or departments. Examples: Administrative salaries, utilities, rent, insurance.
3. Recurring Costs: Costs that occur regularly throughout the project life cycle. Examples: Monthly salaries, maintenance fees, lease payments.
4. Non-Recurring Costs: One-time costs that occur only once during the project. Examples: Purchase of equipment, initial setup cost, software licenses.
5. Fixed Costs: Costs that do not change with the level of output or activity. Examples: Building rent, insurance, salaries of permanent staff.
6. Variable Costs: Costs that vary depending on project activity levels or output. Examples: Raw materials, fuel costs, hourly wages

✅ Summary Table

Understanding these cost types helps in better cost estimation, control, and profitability analysis.

Project Financing and Budgeting

Project financing and budgeting are crucial parts of project planning, helping in allocating resources, estimating costs, and determining how funds will be raised and used during the project life cycle.

🏦 Sources of Finance

These are the different ways to arrange funds for a project:

Top-Down Budgeting

Bottom-Up Budgeting

Activity-Based Costing (ABC)

In Short, Effective financing and budgeting ensure that a project has enough resources to reach its goals. While Top-down budgeting focuses on strategy, Bottom-up ensures accuracy. Tools like Activity-Based Costing provide deeper insights into resource allocation and help control costs.