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EED 221

Project Planning & Management

TU BBM · Semester 8 · BBM curriculum effective from 2021

Requirement
elective
Credits
3
Study Guide
8 units available

Chapter notes

Authoritative study guide across 8 syllabus units

Open a unit to read its study notes.

Unit 1: Introduction to Project Management· 8 LHs· ~10 marks

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Difficulty: ★★★ | High-yield focus: Master definitions of project, triple constraints, and project life cycle in Part 1. Key exam mastery: Diagram the project lifecycle and iron triangle constraints, contrast project vs operational routine work in Part 3, and solve the weighted scoring project selection ladder in Part 4.

Part 1: Core Concepts (2 Marks)

  • ★ Project: A temporary endeavor undertaken to create a unique product, service, or result, characterized by a defined beginning, end, scope, and dedicated budget.
  • ★ Triple Constraints (Iron Triangle): The foundational project management triad of Scope, Time, and Cost bounded by Quality; altering one dimension inescapably impacts the others.
  • ★ Project Life Cycle: The sequential phases through which a project passes from initiation, planning, execution, and monitoring to final closure.

Part 2: Structural Frameworks (10 Marks)

Project Lifecycle Dynamics and Constraint Interdependence

Projects progress through distinct phases, each demanding specific managerial competencies, documentation gates, and resource commitment profiles.

Visual Architecture: Lifecycle S-Curve and Constraints

Project Lifecycle and Triple Constraints
Project Lifecycle and Triple Constraints

In Nepal, infrastructure projects (such as Melamchi Water Supply, Postal Highway, and Upper Tamakoshi) have historically suffered from chronic delays and cost overruns. Major structural causes of poor project performance in Nepal include:

  1. Prolonged Site Clearance: Inefficient land acquisition, disputed forest clearance approvals, and right-of-way disputes.
  2. Defective Procurement & Low-Bidding Culture: Awarding public contracts solely to lowest bidders lacking technical capability or balance sheet liquidity.
  3. Political Instability & Bureaucratic Transfers: Frequent turnover of Project Directors and procurement officials disrupting institutional accountability.
  4. Contractor Cash Flow Insolvency: Contractors bidding on multiple contracts simultaneously, diverting mobilization advances across unlinked projects.

Part 3: Distinction Tables

Projects vs. Operational Business Activities

Dimension Project Undertakings Ongoing Operational Activities
Temporal Horizon Temporary with explicit start and termination milestones. Permanent, repetitive, ongoing without defined end dates.
Output Nature Creates a unique, non-standardized deliverable or asset. Produces repetitive, standardized goods or services.
Organizational Structure Cross-functional, temporary, matrixed project team. Functional, permanent departmental hierarchies.
Risk & Uncertainty High uncertainty regarding novel tasks and scope changes. Low uncertainty; governed by standardized operating procedures.
Performance Success Measured against Scope, Time, Cost, and stakeholder value. Measured against annual efficiency, volume, and unit margins.

Part 4: Worked Problems & Exam Traps

Worked Numerical: Multi-Criteria Weighted Scoring Project Selection Model

A public infrastructure authority evaluates three alternative hydropower projects (P1,P2,P3P_1, P_2, P_3) across four strategic criteria:

  • Criterion 1: Economic Internal Rate of Return (EIRR): Weight = 0.35
  • Criterion 2: Environmental & Social Safeguard Impact: Weight = 0.25
  • Criterion 3: Construction Technical Feasibility: Weight = 0.20
  • Criterion 4: Alignment with National Grid Priority: Weight = 0.20

Scores on a 1-to-10 scale:

  • P1P_1: EIRR=8\text{EIRR} = 8, Env=6\text{Env} = 6, Feas=7\text{Feas} = 7, Grid=9\text{Grid} = 9
  • P2P_2: EIRR=9\text{EIRR} = 9, Env=5\text{Env} = 5, Feas=8\text{Feas} = 8, Grid=7\text{Grid} = 7
  • P3P_3: EIRR=6\text{EIRR} = 6, Env=9\text{Env} = 9, Feas=8\text{Feas} = 8, Grid=8\text{Grid} = 8

Step 1: Compute Weighted Score for Project 1 (P1P_1)

S(P1)=(8×0.35)+(6×0.25)+(7×0.20)+(9×0.20)S(P_1) = (8 \times 0.35) + (6 \times 0.25) + (7 \times 0.20) + (9 \times 0.20)
S(P1)=2.80+1.50+1.40+1.80=7.50S(P_1) = 2.80 + 1.50 + 1.40 + 1.80 = 7.50

Step 2: Compute Weighted Score for Project 2 (P2P_2)

S(P2)=(9×0.35)+(5×0.25)+(8×0.20)+(7×0.20)S(P_2) = (9 \times 0.35) + (5 \times 0.25) + (8 \times 0.20) + (7 \times 0.20)
S(P2)=3.15+1.25+1.60+1.40=7.40S(P_2) = 3.15 + 1.25 + 1.60 + 1.40 = 7.40

Step 3: Compute Weighted Score for Project 3 (P3P_3)

S(P3)=(6×0.35)+(9×0.25)+(8×0.20)+(8×0.20)S(P_3) = (6 \times 0.35) + (9 \times 0.25) + (8 \times 0.20) + (8 \times 0.20)
S(P3)=2.10+2.25+1.60+1.60=7.55S(P_3) = 2.10 + 2.25 + 1.60 + 1.60 = 7.55

Conclusion: Project 3 (P3P_3) achieves the highest composite score (7.55), outperforming P1P_1 (7.50) and P2P_2 (7.40), making it the recommended project for capital commitment.

TU Exam Trap: Students often select the project with the highest raw financial return (EIRR) without completing the multi-criteria weighted matrix calculation. Students lose marks here because strategic project selection models mandate evaluating balanced environmental, social, and technical criteria alongside pure financial yield.