DPM 220 PROJECT PLANNING DESIGN AND IMPLEMENTATION

Course outline
1. Introduction to Project Management
 Project identification and selection
 Project selection and consideration
 Elements of projects planning
 Logical framework approach to project planning and design
 Project implementation
 Project appraisal
 Project evaluation
 Strategic environmental assessment
 Contemporary issues in project management

2. Concept of project management

 Difference between a Project and a Program
 Project Management Cycle (PMC)
 Project management vs. Functional management
 Reasons to do Project Management
 Characteristics of projects
 Key Project Parameters
 The role of monitoring and evaluation in Project Cycle

3. Project Identification and Selection

 Criteria for Project Selection
 Introduction to Portfolio Management
 Stakeholder Mapping Analysis
 The problem Tree Analysis
 The objective Assessment
 Determining acceptable Strategy Options
 Sources of Project Information
 Conducting Project Feasibility studies

4. Project Selection Considerations

 Production considerations and marketing considerations,
 financial considerations and Personal considerations
 Social cultural considerations
 Environmental considerations and Policy considerations

5. Elements of Project Planning

 Project Planning Process
 Selecting Project Team
 Introduction to Project Scope Management- Quality, Time and cost
 Introduction to Project Risk Analysis and Management
 Introduction to Project Planning Tools
 Drawing Project Execution Plan
 Identifying Project Resources
 Preparation of Project Proposals
 Project Designs
6. The logical framework approach to project planning and design
 Setting project Objectives
 Setting project Indicators
 Identifying project Activities
 Project Output
 Project Outcome
 Project Impacts
 Project Assumptions and Risks
 Other Planning and Design Tools: – Results and Conceptual frameworks

7. Project Appraisals
 Appraisal process – Baseline study, Needs Assessment, and Possible Output
 Types of project appraisal: - technical, commercial and marketing, financial/economic and
organizational
 Cost benefit analysis
 Cost effectiveness analysis
 Scoring and weighting

8. Project implementation
 Use Project Execution plans
 Definition and Duties of project team
 Managing Project Schedules/Time
 Managing Project Budget
 Managing Contracts
 Project Change Management
 Communication Management
 Managing Project Human Resources

9. Project Evaluation
 Four Critical Moments to evaluate projects
o Pre-Implementation – Baseline Studies
o Midterm Evaluation
o End of Project Evaluation
o Impact Evaluation

10. Contemporary Issues in Project Management

 Concept of Participatory Management
 The place of Strategic Environmental Assessment(SEA) in global world
 The SEA Principles
 The SEA Objectives
 The SEA Process
 Project sustainability
 Fund raising for community development
 The role of development partners in development
 Gender and development
 Relevant areas of body of knowledge (APM, PMI, PMBOK
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Design of course

Lecture, Discussion, Interactions, Examples and Presentations –slides

 PROJECT MANAGEMENT, PLANNING, DESIGN AND IMPLMENTATION

TOPIC 1: INTRODUCTION TO PROJECT MANAGEMENT

What is a Project and Project Management?

A project is a temporary and unique set of coordinated and none repetitive activities undertaken
to create a unique product, process service or results within defined time, costs scope and quality
constraints for target beneficiaries.

A Project is:

o A group of milestones or phases, activities or tasks that support an effort to

accomplish something.

o A combination of Human and non-human resources put together in a temporary

organization to achieve a specific purpose.

o A set of skills. Specialist knowledge, skills and experience are required to reduce
the level of risk within a project and thereby enhance its likelihood of success.

o A “cutting edge of development” or as “building blocks of development.”

o A Scientifically evolved work plan devised to achieve a specific objective within

a specific period of time. It can be considered as proposal involving capital
investment for the purpose of developing facilities to provide goods and services

Characteristics of a project
1. Temporary – all projects have a definite beginning and end. They are always within a
scope of time whether they achieve their objective or not. They often have intended and
unintended social economic and environmental impact that far outlast the project itself.
2. Progressive- projects have progressive elaboration developing in steps and continuing by
increments.
3. Unique – projects are unique and create unique deliverables which are products, process,
services or results. the products are quantifiable, capability to perform a service, results in
outcomes and produces unique products.
4. Targets beneficiaries – projects have target beneficiaries, these are people the project is
set to benefit from the products process services or results include; community, clients,
customers, school church, traders etc.
Project management – is the practice of initiating, planning, executing, monitoring, controlling
and closing the work of a team to achieve specific goals and meet specific success criteria at
specified time. It’s the application of knowledge, skills, tools and techniques to project activities
to meet project requirements. Processes involve - initiation, planning, executing, monitoring,
controlling, and closing, Knowledge areas – integration, scope, time, cost, quality, procurement
human resources, communications, risk management, stakeholder management.

1.1 Project Identification and Selection

Project Identification involve;

 Ideas for projects and other actions are identified and screened for further study.
 Consultation with intended beneficiaries of each action, and analysis of the problems they
face,
 Identification of options to address these problems.
 Decision is made on the relevance of each project idea and which ideas should be further
studied during the design and planning stage
 Project identification phase seeks:
a) To develop a plan and risk assessment for a proposed project
b) To provide information for portfolio assessing strategic viability of the project.
c) Emphasis on analyzing the project sponsor’s strategic requirements as well as
immediate needs.
d) Deliverables on Project management, a foundation for estimates and for the Project
Charter

Before initiating a project, consider that:

a) All resources necessary for completing the project are available (first of all human
resources)
b) the probability for getting finances is big enough
c) the project contributes to achieving strategic goals of the institution
d) the external conditions favourable
e) the need for the project outcome is widely recognized,

Needs analysis
 Determination of needs is done just prior to initiating a project
 A detailed needs analysis is made during the planning phase.

Need analysis provides:

 Justification of the project to potential donors and decision makers;
 Better understanding and overview of the project scope
 A simple composition of the project plan;
 Enhanced commitment of project partners; general acceptance of significance of the
project
Needs analysis requires:
 Information about similar projects done by the partners elsewhere;
  SWOT-analysis: strengths, weaknesses, opportunities and threats in relation to the
project.
 A project should be initiated only if all, the stakeholders are convinced that the project
will contribute to sustainability and
 The good of institutions involved and that there is necessary commitment present.

Project Documents
 Also called Project artefacts
 Depending on the project size and type:
– Needs analysis and/or feasibility study
– Project charter
– Terms of reference/scope statement
– Work breakdown structure and/or project schedule
– Project management plan and/or responsibilities assignment document
– Communications plan
– Resource management plan
– Change control plan
– Risk management plan and/or table/database of risks
– Lessons learned document/database

Project Charter
 The charter is a short (usually 1-2 pages) document that states the main objective, list of
the main activities and outcomes, necessary resources etc. It is a basis for composing
project team and for obtaining acceptance for project planning.
 The project charter should contain the following information about the project:
 Approval for initiating or participating in the project
a) from decision makers: top upper management
b) Preliminary title
c) The objective
d) Explanation of the need and justification/significance
e) Basic strategy for achieving the project goals
f) Project team/partners (incl. the contact data of the coordinator) and distribution of tasks
g) Resources need and estimations about their availability
h) Duration
i) Identify constraints on time, money, quality and other resource use
j) Identify relevant customer or supplier standards or statements of best practices
k) Consider how the finished product can be brought into use
l) Identify the training needs for user personnel
Challenges of project identification
 Competing stakeholder interests
 Financiers
 Users
 Regulators
 Inadequate information
 Sabotage
 Exogenous dynamics
 Apathy
 Over ambition

1.2 Project Selection and Consideration

Project selection is a process to assess each project idea and select the project with the highest
priority. The selection is based on; Benefits (a measure of positive outcomes of the projects in
terms of biodiversity, economy, social and cultural fulfilment of national regional or
international agreements), Feasibility (measure of likelihood of the project being a success-
achieving its objectives).
We do project selection since we do not have enough resources time and money to undertake all
suggested projects. In addition, we should consider the project stakeholders including funders
government local and non-governmental organization community etc. the benefits of doing
selection include having a transparent and documented record of why a particular project was
selected. Having a priority order for projects that take into account their importance and how
achievable the project is.
Project selection criteria is an input to project initiation process, which is concerned with product
or service of the project and how it will benefit the company. Selection criteria can be
predetermined like; To increase market share, To increase public awareness of the product, To
increase profits etc.
There are various selection methods but the underlying concept and principles are the same, two
main method include Benefit Measurement and Constrained Optimization Method, as
presented in the following figure;
 Decision model
Benefit
measurement
Comparative approach method
Cost benefit analysis Scoring model
model
Discounted cash flow
Economic model
model

Net present value Internal rate of return

model model

Mathematical Constrained
approach optimization
method
source:

1.3 Elements of Projects Planning

Planning is described, in general, as selecting certain enterprise objectives and establishing the
policies, procedures and programs necessary for achieving them
Project planning involves a series of steps that determine how to achieve a particular community
or organizational goal or set of related goals and this goal can be identified in a community or a
strategic plan. Planning is an iterative process that is performed throughout the life of the project

Its main purpose is to arrange time, cost and resources adequately to estimate the work needed
and to effectively manage risk during project execution
Project planning generally consists of:
 Determining how to plan
 Developing the scope statement
 Selecting the planning team
 Identifying deliverables and creating the work breakdown structure
 Identifying the activities needed to complete those deliverables
 Estimating the resource requirements for the activities
 Estimating time and cost for activities
 Developing the schedule
 Developing the budget
 Risk planning
  Gaining formal approval to begin work

Reasons for planning

 Establishing business requirements.

 To eliminate or reduce uncertainty
 To improve efficiency of the operation
 To obtain a better understanding of the objectives
 To provide a basis for monitoring and controlling work
 Establishing cost, schedule, list of deliverables, and delivery dates.
 Establishing resources plan.
 Getting management approval and proceeding to the next phase.

Planning Process

• The planning process determines what needs to be done (scope, deliverables), how it
will get done (activities, sequence), who will do it (resources, responsibility), how long
it will take (durations, schedule), and how much it will cost (budget).

It includes the following steps:

1. Establish project objective. The objective must be agreed upon by the sponsor or
customer and the organization that will perform the project.
2. Define scope. A project scope document must be prepared. It should include customer
requirements, major work tasks or elements, a list of deliverables, etc.
3. Create a work breakdown structure. Subdivide the project scope into pieces or work
packages
4. Assign responsibility. The person or organization responsible for each work item in
the WBS must be identified in order to inform the project team of who is responsible and
accountable for the performance of each work package and any associated deliverables.
5. Define specific activities. Review each work package in WBS and develop a list of the
detailed activities that need to be performed for each work package and to produce any
required deliverables.
6. Sequence activities. Create a network diagram that shows the necessary sequence and
dependent relationships of the detailed activities that need to be performed to achieve the
project objective.
7. Estimate activity resources. Determine the types of resources required to perform
each activity, as well as the quantity of each resource that may be needed.
8. Estimate activity durations. Make a time estimate for how long it will take to
complete each activity, based on the estimate of the resources that will be applied.
 9. Develop project schedule. Based on the estimated duration for each activity and the
logical relationships of the sequence of activities in the network diagram, develop the
overall project schedule
10. Estimate activity costs. Activity costs should be based on the types and quantities of
resources estimated for each activity as well as the appropriate labor cost rate or unit cost
for each type of resource.
11. Determine budget. A total budget for the project can be developed by aggregating
the cost estimates for each activity.

Consequences of Poor Planning

a) premature project initiation
b) wild enthusiasm
c) disillusionment
d) chaos
e) search for the guilty
f) punishment of the innocent
g) promotion of the non-participants
h) definition of the requirement

1.4 Logical Framework Approach to Project Planning and Design

Logframe originated from planning used by US military and was later used by USAID in 1960s
for development projects, it is a 4x4 table with 16 cells. It is a Management tool used to identify
strategic elements of a programme or project (objective, expected accomplishments, indicators of
achievement, outputs and inputs) and their causal relationships, indicators and the assumptions or
risks that may influence success and failure. It facilitates planning, implementation, monitoring
and evaluation of a development intervention in a programme or project. A distinction is usefully
made between what is known as the Logical Framework Approach (LFA) and the Logical
Framework Matrix.

Logical Framework Approach (LFA)

This is a tool – or even an open set of tools – for project design and management. The approach
involves problem analysis, stakeholder analysis, developing a hierarchy of objectives and
selecting a preferred implementation strategy. The product of this analytical approach is the
matrix (the Logframe), which summarises what the project intends to do and how, what the key
assumptions are, and how outputs, outcomes and impacts will be monitored and evaluated

Logical Framework Matrix

The Logframe Matrix is a participatory Planning, Monitoring & Evaluation tool whose power
depends on the degree to which it incorporates the full range of views of intended beneficiaries
and others who have a stake in the programme design. It is a tool for summarizing the key
features of a programme and is best used to help programme designers and stakeholders;

Summary of logical framework

Project Objectively Means of Important Assumptions

Narrative Verifiable Verification (MOV)
Summary Indicators (OVI)

GOAL: The higher Overall %, No. Measures (direct or The sources of data Important events,
level objective towards increase or indirect) to verify to necessary to verify conditions or decisions
which the project is decrease aimed what extent the goals the status of goal outside the control of the
expected to contribute is fulfilled level indicators project which must
(mention the target prevail the goal
groups)

OUTCOMES: The Measures (direct or The sources of data Important events,

effect which is expected indirect) to verify to necessary to verify conditions or decisions
to be achieved as a what extent the the status of purpose outside the control of the
result of the project purpose is fulfilled level indicators project management
necessary for achievement
of the purpose

OUTPUTS: The Measures (direct or The sources of data Important events,

results that the project indirect) to verify to necessary to verify conditions or decisions
management should be what extent the the status of output outside the control of the
able to guarantee outputs are level indicators project management
(mention target groups) produced necessary for the
production of outputs

ACTIVITIES: The Goods, people and The sources of data Important events,
activities that have to be services necessary to necessary to verify conditions or decisions
undertaken by the undertake the the status of activity outside the control of the
project in order to activities level indicators project management
produce outputs necessary for the start of
the project
Objectively Verifiable Indicators(OVI)
These are measures direct or indirect that will verify to what extent the objectives have been fulfilled.
How you will measure the achievements. OVI Indicators;
• must be valid, reliable, precise, cost-effective and stated independently from other levels.
• should make clear how the target group will benefit from the realization of outputs.
• should be specific in terms of: Quality (what?), Quantity (how much?), Time (when, how long?),
Target Group (who?) and Place (where?)
The process of defining indicators forces us to clarify our objectives. A good indicator is:
a. Plausible - measuring what is important in the project
b. Attributable - measuring changes caused by the project
c. Cost-effective - involving data that may be collected and analyzed inexpensively
d. Independent - not inherent to the project
e. Verifiable - to reach agreement

Means of Verification(MOV)
These are pieces of information which show the standard set by indicators has been reached. How will
you collect information for the indicators? For some objectives and indicators, however, there may be no
current information available. It’s important to determine what information will be needed at the onset of
project. When determining MOV, it’s important to; make use of existing information; keep information
requirements simple and relevant; consider how information will be analysed, what resources will be
required to process it, and how it will be presented.

Goal – is the overall aim

Outcome or purpose – is what will be achieved who will benefit and by when
Output – is the specific results the project will generate
Activities – are what tasks need to be done in order for the output to be achieved
Risks or Assumptions - are external conditions needed to get results.
A Sample Logframe Matrix Guide
Benefits of Logframe approach
a) improves project design,
b) encourages project performance,
c) facilitates project management,
d) Achieves a structured project design process characterized by a logical sequence,
interlinking the individual steps in the design process.
e) Bring about the participation of the stakeholders involved in the project design and
management

Example of a Logframe project matrix: project transition increase of grade 6 pupils to high
school

Project Summary Objectively Verifiable Means of Verification Risks/ Assumptions

Indicators (OVI) (MOV)
GOAL 10% increase in no. of grade 6 Percentage of grade 6 Comparison of primary N/A
primary pupils continuing on to and high school
high school within two years enrolment records
OUTCOMES Improve reading proficiency Reading proficiency Six monthly reading Improved reading
among pupils in grade 6 by 20% among pupils in grade 6 proficiency tests using proficiency provides self-
with 2 years national assessment tool confidence required to
stay at school
OUTPUTS 1. 500 grade 6 pupils with low No. of pupils comprising Summer camps Pupils apply what they
reading proficiency complete a reading summer camp attendance record have learnt in camps at
reading summer camp. school

2. 500 parents of children in No. of parents helping Survey of parents Children are interested in
grade 6 with low reading their children to read at conducted at the end of reading with their
proficiency help their children home each summer camp parents
read at home
ACTIVITIES 1. Run 5 reading summer No. of summer camps Summer camps records Parents of children with
camps each with 100 grade 6 run lows reading proficiency
pupils who have low reading are willing to send them
proficiency to the camp
Kits distribution record Parents are interested
2. Distribute 500 reading at No. of kits distributed and able to use the kits
home kits to parents of at home
children attending summer
camps
Source: 2015

1.5 Project Implementation

Project implementation is where project management plan is translated into action. It is carrying
out activities proposed in the project plan to achieve project objectives, and deliver results and
outputs. Its success depends on internal and external factors including; project team and effective
monitoring of project progress and related expenditure. Overall project implementation requires
lead partner and project leader who aspire to deliver quality results and outputs. Project
implementation tasks involve; implement, (monitor progress, risks, changes and quality),
evaluate, report (internally &externally) communicate (internally &externally).

1.6 Project Appraisal

Project appraisal is the process of assessing in structured way, the case for proceeding with a
project or proposal, or the project’s viability. It often involves comparing various options using
economic appraisal or some other decision analysis techniques the entire project should be
objectively appraised for the same feasibility study should be taken in its principal dimension,
technology economic financial social and so far to establish the justification of the project or the
project appraisal is the process of judging whether the project is profitable or not to client or it is
process of detailed examination of several aspects of a given project before recommending of
some projects.

1.7 Project Evaluation

Is a systematic and objective Assessment of an ongoing or completed project with the aim to
determine the relevance and level of achievement of project objective, development effectiveness
efficiency impact and sustainability. Project evaluation is an important tool to measure
PROJECT performance and demonstrate achievement of project. It helps answer questions like,
‘is the project still on track?’ is the project delivering results as expected?’ it is a learning
exercise, a culture that support learning and able to derive positive lessons for future problems
solving. Evaluation can be done during implementation to know how the project is performing or
at the end of the project to present the present achievement of the project. The purpose of
evaluation is for accountability, implementation knowledge production, planning efficiency,
institutional strengthening.

1.8 Strategic Environmental Assessment (SEA)

Is a systematic decision support process aiming to ensure that environmental and possibly other
sustainability aspects are considered effectively in policy, plan and program making? According
to Fischer; it is a structured, rigorous, participative open and transparent environmental impact
assessment based process, applied particularly to plans and programmes prepared by public
planning authorities and times private bodies.
Participative open and transparent possibly non EIA based process applied in more flexible
manner to policies, prepared by public planning authorities and private bodies. A flexible non
EIA based process applied to legislative proposals and other policies plans and programmes in
political cabinet decision making.
1.9 Contemporary Issues in Project Management
The project management issues to be investigated is multiculturalism in modern projects. the
reason is that 21st century has become increasingly global driven by the following;

 Rapid economic development in many parts of the world which has led to increase in
people’s income thus having direct effect on consumer behavior
 Business expanding in new markets located in different geographical locations
 Free movement of people to different parts of the world in search of better opportunities
 Rapid advancement in telecommunication technology which has made the world more
connected

Modern project teams comprise of people from different geographical areas, cultures, religious
background etc. the way people behave can make projects succeed or fail

Other big issues affecting project include;

 Leadership – leadership is concerned with doing the right things look at projects
holistically and focus on team work, communication and motivation. Managers become
team leaders nowadays command and control don’t work
 Risk – there is greater understanding that risks is not a one off event you have to
constantly manage risk this ties it with stakeholder management this area is constantly
evolving to manage the upcoming risks on global scale
 Value – this related to how people feel about the end product it concerns stakeholder
relationship
 Talent management – we are moving to more projectised economy with knowledge
workers doing unrepetitive tasks there a great focus on portfolio management for
managing operations and projects with a company.
TOPIC 2: CONCEPT OF PROJECT MANAGEMENT

Difference between a Project and a Program

. Project Program
1. Has relatively few sponsors Has multiple sponsors
2. Will be a contained disaster if it fails May be a corporate disaster if it fails
3. Is focused on a deliverable Is focused on a business objective
4. Will deliver benefit after completion Will deliver benefit in phases
5. Has a short/medium-term lifespan Has a long- term lifespan
6. Has variable risk Is always high risk
7. Has a focused scope Has a wide scope
8. Excludes BAU activity Includes BAU activity
9.

Project Management Cycle (PMC)

A project life cycle is the series of phases that a project passes through from its initiation to its
closure. The phases are generally sequential, and their names and numbers are determined by the
management and control needs of the organization or organizations involved in the project, the
nature of the project itself, and its area of application.
Life cycles are important because they demonstrate the logic that governs a project. They are a
methodology for the preparation, implementation and evaluation of projects based on the
principles of the logical framework approach (LFA)
PMC involves regulating and supervising various activities undertaken in each phase of project
cycle to ensure that projects are; Relevant to the beneficiaries; Supportive of the policies of the
sponsor e.g. GOK, donor parties like USAID, etc.; Feasible and effective.

Activities of PMC
- Policy setting
- Project identification
- Appraisal
- Formulation/planning and designing
- Commitment/contracting
- Implementation execution of plan
- Monitoring and midterm evaluation
- Final evaluation and closure/ phase-out

N/B There is no standard project life cycle activities or phase this varies from one organization to
another depending on the project type and demands of the sponsor and organization
implementing the project. However there five steps which are considered conventional phases;
The Project Management Cycle Phases

1. Initiation/Conceptualization – the development of the initial goal and technical

specifications for a project. Scope of the work is determined, necessary resources
identified and stakeholders signed on
2. Planning – all detailed specifications, schematics, schedules and other plans are
developed. Individual pieces of the project (work packages) are broken down into
assignments and process for completion clearly delineated.
3. Execution/Implementation – the actual “work” of the project is performed, the system
developed or the product created and fabricated. The bulk of project team labour is
performed
4. Termination/Closeout – occurs when the completed project is transferred to the
customer, its resources reassigned and the project formally closed out. As specific sub
activities are completed, the project shrinks in scope and costs decline rapidly

Project Phases Inputs Outputs

Initiation/ Business Need Project Charter

Conceptualization

Planning Project Charter Project Plan

Execution/ Project plan Project

Implementation Deliverables

Termination/ Project Project Deliverables Project Closeout

closeout Report

Characteristics of the Project Life Cycle

a) Project is divided into distinct step or phases
b) Each stage/phase is marked by a number of deliverables or phase outputs
c) Usually one phase consists of several sub phases or activities
d) The phases/stages are progressive each stage should have phase exit or completion points
that allow the next phase to be undertaken successfully
e) Cost and staffing levels are low at the start, peak as the work is carried out, and drop
rapidly as the project draws to a close.
f) A project may require significant expenditures to secure needed resources early in its life
cycle, for instance, or be fully staffed from a point very early in its life cycle.
g) Risk and uncertainty are greatest at the start of the project. These factors decrease over the
life of the project as decisions are reached and as deliverables are accepted.
 h) The ability to influence the final characteristics of the project’s product, without
significantly impacting cost, is highest at the start of the project and decreases as the
project progresses towards completion.

Project Management vs. Functional Management

The key difference between project management and functional management is that project
management is the process of initiating, planning, executing, controlling, and closing the work of
a project to achieve a specific objective whereas functional management is managing the routing
activities in the organization relating to various functions such as production, sales, and
marketing, finance etc. in order to achieve the overall objective of the organization. Managing
functional tasks are done from the inception to the end of a business organization. On the other
hand, projects are carried out based on a specific need

What is Functional Management?

Functional management refers to managing the routing activities in the organization relating to
various functions such as production, sales, and marketing, finance etc. Functional managers
have ongoing responsibilities and are not usually directly associated with project teams. The
main task of functional managers is to ensure that the daily business activities are conducted
smoothly, which in turn will assist in realizing the overall corporate objectives.

Duties of a Functional Manager

 Share professional suggestion and knowledge with the employees

 Allocate resources efficiently by identifying the resource priorities
 Provide employees with learning opportunities
 Identify cost inefficiencies and address them to improve efficiency

Differences between project and functional management

category Project management Functional management

Process is the process of initiating, planning, management is managing the routing activities in
executing, controlling, and closing the work the organization relating to various functions such
of a project to achieve a specific objective as production, sales, and marketing, finance etc.
in order to achieve the overall objective of the
organization.

Nature is unique and the project is terminated once is a continuous and repetitive process.
the objective is achieved.

Time Frame is a onetime activity with a specified time is an ongoing activity

span
Summary – Project Management vs Functional Management

The difference between project management and functional management can be easily identified
by taking into account the characteristics of a project. If the focus is to achieve a specific
objective within a defined period of time that is outside the routine business operations, such a
task relates to project management. Managing daily business activities with the intention of
realizing the overall purpose of the company is referred to as functional management. Both
aspects are very important to an organization where projects will have to be undertaken based on
specific business requirements.

Why Project Management?

Reasons to do Project Management; Project Management in itself helps to;

1. Clearly defines plans of the project before it begins – planning cannot be ignored,
management tries to tame chaos by mapping out clear plans of the project from start to
end
2. Establishes an agreed schedule – schedules help eliminate delays or overruns and provide
a plan to be followed
3. Creates a base for teamwork – people are required to work as a team on a project this is
due to team synergy benefits through sharing and support of knowledge and skills.
4. Resources are maximized – both human and financial resources tend to be expensive
project tracking and project risk management ensure all resources are used efficiently and
accounted economically
5. Helps to manage integration - project that are completed within an organization are
usually integrated with wider business processes and systems
6. Helps to keep control of costs – is important to keep on budget and to control spending
project management greatly reduces the risk of budget overruns.
7. Helps manage change - change is something all organizations face projects must be
prepared to face changes and deviation from original plan project management allows for
effective change management and makes it less of a complex task
8. Creates opportunity for learning – project may work out perfectly or fail miserably either
way much is learned in the process project management ensures these lessons are learned
and applied in future.
9. To accelerate improvements and strengthening of company’s management through
implementing of ideas of participatory management.
10. To adopt systems engineering approach that help deal with risks effectively.
11. To accomplish specific changes that are linked to company’s strategies

Characteristics of Projects

- Projects are unique – it requires doing something different/ly not done before
 - Single definable purpose – projects are specified in terms of cost schedule and
performance requirements
- Temporary – every project has a finite start and finite end
- Unique deliverables – any project aims to produce some deliverables which can be a
product, service or other results deliverables address a problem or need analyzed before
project start
- Organization has something at stake – projects call for special scrutiny or effort otherwise
it would jeopardize the organization goals
- Progressive elaboration – with the progress of project continuous investigations and
improvements become available and this produce for more accurate and comprehensive
plans successive iterations of planning results in developing more effective solutions to
progress and develop projects.

Others include;

 Purposeful
 Logical
 Structured – has interdependence between tasks and activities
 Conflict solver - as it tries to solve problem that create some conflict
 Limited by available resources
 Risky as it involves element of risks

Key project parameters

Project Management Parameters are certain characteristics and features that can define a project
or its aspects. These parameters (project characteristics) can be expressed in different ways,
including qualitative and quantitative terms – strict figures, technical wording, graphs, status etc.

The set of project management parameters includes the following ones:

1. Project scope – actual working content that a project embraces;

2. Project time – duration of a project, and life-span of its results;
3. Project integration – a variety and type of participation and collaboration that a project
demands from different concerned groups;
4. Project quality – specifications on project efficiency, capabilities and effectiveness of its
results; Quality factors apply to inputs (the raw materials for the project), to outputs (what
the project produces), to outcomes (the results of the project), and to processes (the
means used to achieve the outputs). So in the example of the employment training
project, there will be quality factors in the training materials (the inputs), in the delivery
of the training (the process), in the number of young people successfully ‘passing’ the
training (the outputs), and in the kind of work the young people achieve at the end of the
project (the outcomes).
 5. Quantity - Some projects have no quantity parameters at all; others are very focused on
quantity. For example, if the project aim is to design a leaflet informing people about
services, then the quantity of leaflets produced is not the most important parameter.
However, in the example of employment training for young people, quantity is a key
factor. Funders and other stakeholders will have set clear standards for the number of
young people receiving the training and the numbers successfully placed in work.
6. Project risks – severity and probability of destructive influence that existing negative
factors can put on a project execution;
7. Project costs – determination of money that a project will most likely consume to be
completed;

Every project can be exhaustively defined with a help of these parameters and all of them can be
determined before the beginning of any project, as if even one of these parameters stays
undefined to the time when you decide to start a project, then you severely risk failing this
project. In large organisations, especially in the public sector, it is common for Project Managers
to be very vague about the budget for their project. "Finance deals with all of that" is a phrase we
often hear at the Centre. However, it is unlikely that financial considerations will not affect your
project at all and it is wise, as well as good practice, to get as clear a picture as you can of all the
income and expenditure constraints involved with your project.

The role of monitoring and evaluation in project cycle

Monitoring and evaluation is important because:

 It provides the only consolidated source of information showcasing project progress;

 It allows actors to learn from each other’s experiences, building on expertise and
knowledge;
 It often generates (written) reports that contribute to transparency and accountability, and
allows for lessons to be shared more easily;
 It reveals mistakes and offers paths for learning and improvements;
 It provides a basis for questioning and testing assumptions;
 It provides a means for agencies seeking to learn from their experiences and to
incorporate them into policy and practice;
 It provides a way to assess the crucial link between implementers and beneficiaries on the
ground and decision-makers;
 It adds to the retention and development of institutional memory;
 It provides a more robust basis for raising funds and influencing policy.
TOPIC 3 PROJECT IDENTIFICATION AND SELECTION

Project Identification and Project Selection of the need

Project Identification and selection is a process to assess each project idea and select the project with the
highest priority.

Project Identification: The process of identifying a candidate idea for developing into a project is called
Project Identification. This is a systematic process. Project Identification process starts with the
generation of a product idea. In order to select the most promising project the entrepreneur needs to
generate a few ideas about the possible projects.

Project Selection: Project selection starts from where project identification ends. Project selection is a
careful study of each project idea in detail and choosing one of them for further consideration and
development.

It is not too difficult to find good projects in need of investment or other assistance. Project identification
& selection typically starts with generating ideas. The biggest challenge is to select the ideas that have the
highest chance of becoming beneficial projects. To help in this process, practitioners can use an organized
approach for narrowing down and moving forward with the ideas that can be best converted into projects.

Project Identification & Selection could be from several sources: -

 Progressive Farmers
 Entrepreneurs
 Technical Experts
 Local leaders
 Bankers
 Mass Media
 National Policies

Parameters for Project Selection:

Macro-Parameters for Project Selection:

The selection of a project should fit in with the environment and the considerations for such selection
include:

a) Permissibility of such a project in the:

i. Existing legal and social condition;
ii. Government policies relevant to such project;
iii. Prevalent situation within the relevant industry including over-all market size with its
growth and envisaged market share;
b) Foreign participation, foreign know-how and the liability to pay the foreign partner, as such;
 c) Availability of funds from the Financial Institutions on top of the organization’s own equity
participation and the condition of the capital market;
d) d. Opportunity for employment (with productivity);
e) Overall benefits for a specific project like export-oriented units (EOUs) or projects within export
processing zones (EPZs).
f) Foreign participation with terms of ‘buy-back’;
g) Tax concessions relevant to such project;
h) Government subsidies relevant to such project, such locations planned;
i) Strength and weaknesses of the competitors in the industry relevant to such project.

Micro-Parameters for Project Selection:

The considerations within the micro-parameters for the selection of the project by the project owner (once
the proposed project is favourable within the macro-parameters) should include:

a) The need of the organisation for such a project. The basic objectives should be directed towards
solving the problems or availing of certain opportunities for investments as per the need.
b) The necessary resources should be available to the organisation, selecting such project including:
i. The initial fund for investment;
ii. The organizational strength to implement and run the project;
iii. The required technical know-how;
iv. Sourcing of the basic inputs like raw materials, utilities.
c) The economic viability of such a project

Introduction to Portfolio Management

Stakeholder Mapping Analysis

The problem Tree Analysis

The objective Assessment

Determining acceptable Strategy Options

Sources of Project Information

Conducting Project Feasibility studies

References

1. “5 Basic Phases of Project Management.” 5 Basic Phases of Project Management. N.p., n.d. Web. 07
Apr. 2017.

2. Pathak, Prashant. “Project Management vs Operations Management.” Project Management vs

Operations Management. N.p., 01 Jan. 1970. Web. 07 Apr. 2017.

3. “Project Management Structures vs. Functional Management.” OTC Toolkits. N.p., n.d. Web. 09 Apr.
2017.

4. “What is functional management? definition and meaning.” BusinessDictionary.com. N.p., n.d. Web.
09 Apr. 2017.

http://goo.gl/1W6EOW New Project Identification and Selection of Right Project, Best Business
Opportunities, Thrust Areas for Investment, Industry Startup and Entrepreneurship. new delhi
India 2016