A project is defined as a one-shot, time-tested, goal-directed major undertaking, requiring the commitment of varied skills and resources. A project is also described as a combination of human and non-human resources pulled together in a temporary organization to achieve a specified purpose. A project has a single set of objectives and when these objectives are reached, a project is completed. Therefore, a project has a finite and well-defined life span.
Occassionally the terms 'programme' and 'project' are used synonymously; this is however incorrect. A programme is usually larger in scope, is activitiy-oriented, and is not necessarily time bound. A programme may encompass a number of projects. An industrial development programme, for instance, may consist of one or more fertilizer projects, power projects, and so on. The project objectives must aim at meeting the programme objectives.
A project is a 'one-shot' major undertaking. For example, a thermal power project. Even when another thermal power project is undertaken, it will be different from the previous one.
A project is for setting up a plant and when the plant becomes operational, the project is treated as complete. A project is neither a physical objective nor is it the end result.
A project is an organized programme of activity carried out to reach a defined goal, often of a non-recurring nature with a specified termination point. It is a package of time-bound, scheduled and assembled activities dedicated to the attainment of a specific objective of successful completion of a work, on time and within the allotted budget. A project is a process of working towards achievement of a specific goal; in this it passes through various phases called the 'project life cycle'.
The characteristic features of a project are briefly described below so as to bring out the definition more adeptly:-
1. A project has a mission or a set of objectives. Once the mission is achieved the project is treated as complete.
2. A project has to terminate at some time or the other; it cannot continue forever. The set of objectives indicate the terminal stage of the project.
3. While the number of participants in a project are several, the project is one single entity and its responsibility is assigned to one single agency or individual.
4. A project calls for team work – the members of the team may come from different organizational units, different disciplines and even from different geographic regions.
5. A project has a life cycle represented by growth, maturity and decay. A project has a learning component.
6. A project is unique and no two projects are similar, even though the plants set up are identical. The organizations, the infrastructure, the location and the people make the project unique.
7. Change is a natural phenomenon with every project throughout its life span. Some changes may not have any major impact, whereas others may change the very nature of the project.
8. The happenings during the life cycle of the project are not fully known at any stage. As time passes, the details are finalized successively.
9. A project is always customer-specific. The requirements and constraints within which a project must be executed are stipulated by the customer. A customer may even be an organization or a group of individuals or the management.
10. A project is a complex set of things. Projects vary in terms of technology, equipment and materials, machinery and people, work ethics and organizational culture. The inter-relationship between these various things makes them belong to a project. Without this inter-relationship or sense of belonging, a project cannot be completed.
11. A substantial portion of the work in a project is done by sub-contracting. The greater the complexity of a project, the greater will be the extent of work performed by the sub-contractors.
12. Any project is exposed to risk and uncertainity, and the extent of these two depend upon how the project moves through the various stages in its life span. A well-defined project has lesser risk and uncertainity, whereas an ill-defined project faces greater degree of risk and uncertainity.
13. Apart from the primary objective, which may be profit-making, a project would have secondary objectives aimed at better quality, storage facilities, technology upgradation, pollution control, effluent treatment, waste management, improvement in machine efficiency, creation of tax shields, control and reduction or risks, blocking of competition and a host of other objectives.
A project motivated organization comprising of several interlinked activities could itself be termed as a project. The types of projects that are ventured by such organizations could broadly be classified as New projects, Expansion projects, Modernization projects, Diversification projects and Other projects. The types of projects themselves would tell us why a project is required –
1. New projects – to replace the worn out assets, to produce goods of better quality, to enhance storage facilities, for pollution control and waste management, to create tax shields, to block competion, etc.
2. Expansion projects – to enjoy economies of scale, to block competion, to make up for the short capacity in the industry, to create tax shields, to acquire balancing equipment and install them to correct imbalances in capacity, to expand existing activities.
3. Modernization projects – to enhance quality and quantity, to replace the worn out assets, to upgrade the technology, to counter competitive moves by other firms in the industry, to create tax shields.
4. Diversification projects – to foster organizational growth, for upward, horizontal or downward integration, to expand into allied and new lines of business, to retain competitiveness, to create tax shields, to optimally utilize its human and non-human resources.
5. Other projects – for control and reduction of risks, for machine efficiency, for creation of tax shields, for quality improvement, for enhancing storage facilities, for enhancing productivity, etc.
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