**1.1 So, what is a project?**

PMBOK® defines project as a temporary endeavor to create a unique product, service, or result [4]. It uses the word, temporary, which sometimes implies negative connotation and low importance. One must remember that "temporary" does not influence the length of the project duration. Also, PMBOK definition does not introduce the concept of value and its contribution to organization's strategic goals. Value can be tangible (e.g., cost savings) or intangible (e.g., increased brand equity). However, value is always associated with benefit. A project must provide value to all its stakeholders; if not, project will not receive adequate support [5].

A project can be seen as a new time-bound effort with several related and/ or interdependent tasks to create a unique product or service that adds value. As it is a new effort, often, we do not have complete knowledge or experience about planning and executing the project. Needless to say, projects are characterized with unknown factors and ambiguity, which delay the development of detailed scope and specifications to later stages of project planning. Further, any project requires resources such as materials, tools, equipment, and people to execute it. Considering these additional facets of a project and to extend the definition of a project further, project can be considered as *a complex, non-routine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs and add value to all key stakeholders.*

#### **1.2 Distinction between project and process**

It is important understand the distinction between a project and process. Process is repetitive in nature with clearly defined procedures and outcomes. A process will yield the same result be it a product or a service. Project, on the other hand, is unique and new by definition. So, outcome of a project would always be new and unique. However, project is executed through project management processes and project deliverable-oriented processes.

Projects are conceived, created, and managed because an individual or organization other than the project manager or project team identifies a need [6]. As stated earlier, projects are always aimed at fulfilling organizational objectives and/or strategic needs such as market demand, customer request, technological advance, legal requirements, a social need (for non-profit organizations), crisis situation, and obsolete technology or equipment.

#### **1.3 Project characteristics**

A project is time-bound, i.e. it has definite beginning and definite ending. However, it does not mean that project is of a short duration, which may vary from 10 days to 10years. However, "temporary" does not apply for the project deliverable. It is interesting to note that project team is certainly temporary (**Table 1**).


**217**

*Project Management Concepts*

**2. Project management**

• identifying requirements

have to be considered.

simultaneously.

*DOI: http://dx.doi.org/10.5772/intechopen.93766*

• *service*: online banking, Google search

• *product*: iPhone, power plant

Project outcome can be a product, service, or result.

• *result*: decision to pursue Tokyo airport expansion

*efficiently and effectively to meet stakeholder expectations*.

• establishing clear and achievable objectives

• adapting to expectations of all stakeholders

• *unique*: something or some aspect that is not repetitive

characteristics present a challenge to manage projects successfully.

Progressive elaboration is another characteristic of a project. As requirements

Managing a project includes identifying requirements, establishing clear and achievable objectives, balancing competing demands of quality, scope, cost, and time, adapting specifications, plans, and approach to meet expectations of all key stakeholders including the client and the end-user. We define project management as *the art and science of using experience, knowledge, skills, tools, and techniques* 

Current trends in the project suggest that organizations manage several projects

Long-term success in managing projects requires proven and established project management practices and processes and several successful projects to emulate [1]. Therefore, organization-wide resource allocation becomes necessary to succeed, which may not always be possible. Also, required skills and expertise are always not available locally. Consequently, virtual teams are becoming common for project execution. PM

Thus, project management is an approach to accomplish project objectives within organizational structural and resource constraints for internal projects. For external projects, political, social, legal and environmental constraints may also

and unknowns. Consequently, it requires continual involvement of several

Project is an organization-level effort associated with complexity, uncertainties,

functions. Obviously, integration, coordination, and accountability assume greater importance. Project Management tools and techniques will help to accomplish these integration and management functions. Uncertainties and unknowns affect requirements to change dynamically and the project manager has to meet these requirements while meeting the expectations of all the project stakeholders.

tools increasing in complexity and usefulness. Managing project involves:

• balancing the demands of time, cost, scope, and quality

are not clear at the initiation stage. Developing the project scope in steps and continuing by increments is a common aspect of a project and it goes through stages such as: scope – scope definition – project plan – detailed WBS. All these project

**Table 1.** *Project characteristics.*

*Operations Management - Emerging Trend in the Digital Era*

PMBOK® defines project as a temporary endeavor to create a unique product, service, or result [4]. It uses the word, temporary, which sometimes implies negative connotation and low importance. One must remember that "temporary" does not influence the length of the project duration. Also, PMBOK definition does not introduce the concept of value and its contribution to organization's strategic goals. Value can be tangible (e.g., cost savings) or intangible (e.g., increased brand equity). However, value is always associated with benefit. A project must provide value to all its stakeholders; if not, project will not receive adequate support [5]. A project can be seen as a new time-bound effort with several related and/ or interdependent tasks to create a unique product or service that adds value. As it is a new effort, often, we do not have complete knowledge or experience about planning and executing the project. Needless to say, projects are characterized with unknown factors and ambiguity, which delay the development of detailed scope and specifications to later stages of project planning. Further, any project requires resources such as materials, tools, equipment, and people to execute it. Considering these additional facets of a project and to extend the definition of a project further, project can be considered as *a complex, non-routine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs and* 

It is important understand the distinction between a project and process. Process

Projects are conceived, created, and managed because an individual or organization other than the project manager or project team identifies a need [6]. As stated earlier, projects are always aimed at fulfilling organizational objectives and/or strategic needs such as market demand, customer request, technological advance, legal requirements, a social need (for non-profit organizations), crisis situation,

A project is time-bound, i.e. it has definite beginning and definite ending. However, it does not mean that project is of a short duration, which may vary from 10 days to 10years. However, "temporary" does not apply for the project deliverable.

> - Change - Risky - Complex - Uncertain



It is interesting to note that project team is certainly temporary (**Table 1**).

is repetitive in nature with clearly defined procedures and outcomes. A process will yield the same result be it a product or a service. Project, on the other hand, is unique and new by definition. So, outcome of a project would always be new and unique. However, project is executed through project management processes and

**1.1 So, what is a project?**

*add value to all key stakeholders.*

**1.2 Distinction between project and process**

project deliverable-oriented processes.

and obsolete technology or equipment.

**1.3 Project characteristics**

**216**

**Table 1.**

*Project characteristics.*



Project outcome can be a product, service, or result.


Progressive elaboration is another characteristic of a project. As requirements are not clear at the initiation stage. Developing the project scope in steps and continuing by increments is a common aspect of a project and it goes through stages such as: scope – scope definition – project plan – detailed WBS. All these project characteristics present a challenge to manage projects successfully.
