CHAPTER FIVE

PROJECT IMPLEMENTATION,
MONITORING AND
EVALUATION
Chapter Outline
 Pre-requisites for successful project
implementation
 Project Risk management
 Project implementation planning and scheduling
 Project Problem Diagnosis & Monitoring
 Project control and evaluation.
Pre-requisites for Successful Project
Implementation
 Adequate Formulation
 Sound Project Organization
 Proper Implementation Planning
 Advance Action
 Timely availability of funds
 Judicious equipment tendering and procurement
 Better Contract Management
 Effective Monitoring
Adequate Formulation
A project may be inadequately formulated due to
the following reasons:
 Cursory assessment of input requirement
 Superficial field investigation
 Slip- shod method used for estimating cost and
benefits.
 Omission of project linkages
 Flawed judgment because of lack of experience
and expertise
 Deliberate over -estimation of benefits and
underestimation of benefits
Sound Project Organization

 It is led by a competent leader

 Authority and responsibility are equitably
distributed and matched
 Adequate attention is given to designing
jobs and procedures
 Well defined work methods and systems
 Rewards and penalties linked to
performance
Proper Implementation Planning
 Develop a comprehensive plan for various
activities like land acquisition, tender evaluation,
recruitment of personnel , construction of
building etc.
 Estimate meticulously the resource requirement
(manpower, materials, money etc.) For each
period to realize the time plan.
 Define properly the inter linkages between
activities of the project.
 Specify cost standards
Advance Action
 Acquisition of land
 Securing essential clearances
 Identifying technical
collaborators/consultants
 Arranging for infrastructure facilities
 Preliminary design and engineering
 Calling of tenders
Timely availability of funds
 Funds must be provided before final
approval to initiate advance action.
 Able to implement projects expeditiously
and economically.
 Able to negotiate with suppliers and
contractors aggressively.
 Organize input supplies quickly
Judicious equipment tendering & procurement
 Avoid over dependence on foreign
suppliers.
 Avoid over reliance on indigenous suppliers.
 Maintain a judicious balance between the
two
 Better Contract Management
 Ensure competence and capability of all the
contractors.
 Inculcate proper discipline among
contractors.
 Performance linked penalties and
incentives.
 Regard contractors and suppliers as
business partners.
 Latitude to transfer contracts.
 Effective Monitoring
 Anticipate deviations from the
implementation plan.
 Analyze emerging problems.
 Taking corrective action
 Project Risk Management
Project risk:
 An event that, if it occurs, causes either a positive
or negative impact on a project
 Keys attributes of Risk
 Uncertainty
 Positive and Negative
 Cause and Consequence
 Risk Management Process
 PMBOK ® Definition
 “The systematic process of identifying, analyzing, and
responding to project risk”
 Steps
 Risk Management Planning
 Risk Identification
 Qualitative/Quantitative Risk Analysis
 Risk Response Planning
 Risk Monitoring & Control
 Value From Managing Risks
 Opportunity to move from “fire-fighting” to
proactive decision making on the project.
 Better chance of project success.
 Improved project schedule and cost performance.
 Stakeholders and team members better
understand the nature of the project.
 Helps define the strengths and weaknesses of the
project.
 Why Not Risk Management?
 With so much benefit to managing risk, why is it
often overlooked? :
1. The organization is too busy with real problems to
worry about potential ones,
2. There is a perception that there is not too much that
can go wrong, or
3. They have a fatalistic belief that not much can be
done about risks, or
4. “Shoot the messenger” mentality; fear that disclosure
of project risks will be seen as an indication of
project weakness.
 Risk Management Planning
 Plan for the Planning
 Risk planning should be appropriate for the
project
 Question you should ask:
1. How risky is the project?
2. Is it a new technology or something your
organization is familiar with?
3. Do you have past projects for reference?
4. What is the visibility of the project?
5. How big is the project?
6. How important is the project?
 The Risk Management Plan
 What should it include?
 How you will identify, quantify or qualify risk
 Methods and tools
 Budget
 Who is doing what
 How often
 Risk categories, levels, and thresholds for action.
 Reporting requirements
 Monitoring, tracking and documenting strategies
 Identifying Risk
 Identify project, product and business risks;
 Continuous, Iterative Process
 What is it and what does it look like
 The sooner the better
 The more the merrier
 A fact is not a risk (it’s an issue).
 Be specific
 Don’t try to do everything at once
 Identification Techniques
 Brainstorming
 Checklists
 Interviewing
 SWOT Analysis (strengths, weaknesses
opportunities, threats)
 Delphi Technique (anonymous consensus building)
 Diagramming Techniques
 Cause & effect
 Flow Charts
 Influence Diagrams
 Risks and Risk Types
Risk type Possible risks
Technology The database used in the system cannot process as many transactions
per second as expected.
Software components that should be reused contain defects that limit
their functionality.
People It is impossible to recruit staff with the skills required.
Key staff are ill and unavailable at critical times.
Required training for staff is not available.
Organizational The organization is restructured so that different management are
responsible for the project.
Organizational financial problems force reductions in the project budget.
Tools The code generated by CASE tools is inefficient.
CASE tools cannot be integrated.
Requirements Changes to requirements that require major design rework are proposed.
Customers fail to understand the impact of requirements changes.
Estimation The time required to develop the software is underestimated.
The rate of defect repair is underestimated.
The size of the software is underestimated.
 Software Risks
Risk Affects Description
Staff turnover Project Experienced staff will leave the project before it is
finished.
Management change Project There will be a change of organizational management
with different priorities.
Hardware unavailability Project Hardware that is essential for the project will not be
delivered on schedule.
Requirements change Project and There will be a larger number of changes to the
product requirements than anticipated.
Specification delays Project and Specifications of essential interfaces are not available
product on schedule
Size underestimate Project and The size of the system has been underestimated.
product
CASE tool under- Product CASE tools which support the project do not perform
performance as anticipated
Technology change Business The underlying technology on which the system is
built is superseded by new technology.
Product competition Business A competitive product is marketed before the system
is completed.
 Risk Analysis
 Assess probability, seriousness, consequences and
urgency of each risk.
 Probability may be very low, low, moderate, high
or very high.
 Risk effects might be catastrophic, serious,
tolerable or insignificant.
 Urgency might be immediate, short term, or long
term.
 Analyzing Risk - Qualitative
 Subjective
 Educated Guess
 High, Medium, Low
 Red, Yellow, Green
 1-10
 Prioritized/Ranked list of ALL identified risks
 First step in risk analysis!
 Risk Analysis - Quantitative
 Numerical/Statistical Analysis
 Determines probability of occurrence and
consequences of risks
 Should be focused to highest risks as
determined by Qualitative Risk Analysis and
Risk Threshold
Risk Analysis (i)
Risk Probability Effects
Organizational financial problems force reductions in Low Catastrophic
the project budget.
It is impossible to recruit staff with the skills required High Catastrophic
for the project.
Key staff are ill at critical times in the project. Moderate Serious
Software components that should be reused contain Moderate Serious
defects which limit their functionality.
Changes to requirements that require major design Moderate Serious
rework are proposed.
The organization is restructured so that different High Serious
management are responsible for the project.
 Risk Analysis (ii)
Risk Probability Effects
The database used in the system cannot process as Moderate Serious
many transactions per second as expected.
The time required to develop the software is High Serious
underestimated.
CASE tools cannot be integrated. High Tolerable
Customers fail to understand the impact of Moderate Tolerable
requirements changes.
Required training for staff is not available. Moderate Tolerable
The rate of defect repair is underestimated. Moderate Tolerable
The size of the software is underestimated. High Tolerable
The code generated by CASE tools is inefficient. Moderate Insignificant
Probability & Impact Analysis
Risk Probability Impact Expected
Value
1 25% $45,000 $11,250

2 50% $2,000 $1,000

3 30% $100,000 $30,000

 Risk Response Planning
 Draw up plans to avoid or minimize the effects of the
risk;
 Techniques/Strategies:
 Avoidance – Eliminate it
 Transference – Pawn it off
 Mitigation – Reduce probability or impact of it
 Acceptance – Do nothing
 Strategy should be commensurate with risk
 Hint: Don’t spend more money preventing the risk
than the impact of the risk would be if it occurs
 The Risk Response Plan/Risk Response Register
 Risk Management Strategies (i)

Risk Strategy
Organizational Prepare a briefing document for senior management
financial problems showing how the project is making a very important
contribution to the goals of the business.
Recruitment Alert customer of potential difficulties and the
problems possibility of delays, investigate outsourcing work.
Staff illness Reorganize team so that there is more overlap of work
and people therefore understand each other’s jobs.
 Risk Management Strategies (ii)

Risk Strategy
Requirements Derive traceability information to assess requirements
changes change impact, and maximise information hiding in the
design.
Organizational Prepare a briefing document for senior management
restructuring showing how the project is making a very important
contribution to the goals of the business.
Database Investigate the possibility of buying a higher-
performance performance database.
Underestimated Investigate outsourcing components, investigate use of
development a program generator
time
 Risk Monitoring & Control
 Monitor the risks throughout the project;
 Assess each identified risk regularly to decide
whether or not it is becoming less or more
probable.
 Also assess whether the effects of the risk have
changed.
 Each key risk should be discussed at management
progress meetings.
 Risk Monitoring & Control
 Continuous, Iterative Process
 Done right the risk impact will be minimized:
 Someone IS responsible
 Watch for risk triggers
 Communicate…
 Take corrective action - Execute
 Re-evaluate and look for new risk constantly
 Tools:
 Risk Reviews
 Risk Audits
 Risk indicators

Risk type Potential indicators

Technology Late delivery of hardware or support software, many
reported technology problems
People Poor staff morale, poor relationships amongst team
member, job availability
Organizational Organizational gossip, lack of action by senior
management
Tools Reluctance by team members to use tools, complaints
about CASE tools, demands for higher-powered
workstations
Requirements Many requirements change requests, customer
complaints
Estimation Failure to meet agreed schedule, failure to fix reported
defects
 Project Implementation Planning &
Scheduling
 Project implementation phase embraces the
period from the decision to invest to the start
of commercial production.
 Deviations from the original plans and budgets
could easily jeopardize the entire project.
 Need to determine the technical and financial
implications of the various stages of project
implementation.
 Implementation plan will be the basis for
monitoring and controlling the actual project
implementation
 Project Implementation Planning &
Scheduling
 The implementation schedule must present the
costs of project implementation as well as the
schedule for the complete cash outflows &
inflows of funds
 To implement a project means to execute all the
on- and off-site work tasks necessary to bring a
project from the feasibility study stage to its
operational stage
 A realistic schedule should be drawn up for the
various stages of the project implementation
phase.
 Project Implementation Planning &
Scheduling
 A well-designed project implementation
schedule clarifies and describes what the
project should deliver and within what time-
frames.
 How to create a time-related framework that
helps project planners to deal with the “on time”
part of the project objectives
 What needs to be outlined to produce
deliverables and achieve goals on schedule, within
budget and according to expectations.
 Project Implementation Planning &
Scheduling
 Project implementation planning is intended
 to draw attention to the planner the financial
implications,
 the project scheduling and
 to the possibilities of the early detection of
implementation delays and their financial
consequences
 Project Implementation Planning &
Scheduling
Implementation planning and scheduling include:
 Determination of the type of works
 Determination of the logical
sequences of events in the work task.
Preparation of a time phased
implementation schedule, positioning all the
work tasks correctly in time.
Determination of the resources needed
Documentation of all implemented data
 Project Implementation Planning &
Scheduling
 The following methods may be used
 Gantt chart
 Critical Path Method (CPM) or Net work
analysis
 Project Evaluation and Review Techniques
(PERT)
 Simple formats
 Project Implementation Planning &
Scheduling
 The main stages are:
Appointment of implementation team
 Company formation & legal requirements
 Financial planning
 Organizational build-up
 Technology acquisition and transfer
 Detailed engineering and contracting
 Negotiation and award of contract
 Purchase of material and supplies
 Production marketing
 Start up and initial production
Project Implementation Plan includes
 Project implementation schedule
 What activities can produce expected project
outputs?
 What is the sequence of these activities?
 What is the time frames for these activities?
 Who will be responsible for carrying out each
activity?
 The role of the implementing agency
 Specific responsibilities of the key staff during the
project implementation and monitoring are outlined.
 Beneficiary participation
 Involvement of the beneficiaries in planning and
implementation and what is expected is spelt out.
Project Implementation Plan includes
 Organizational structure and staffing consider the
following:
 project structure for purposes of management
 qualifications and skills for the staff
 job descriptions and specifications for the staff
 technical assistance if needed
 Financial management looks at:
 funds management, accounting period, financial
reports & statements
 Reporting system
 Who will report?
 Whom to report?
 When to report?
Project Implementation Plan includes
 Standard design and reporting format is needed
 Sustainability
 Project should be sustained beyond the life of funding
– especially if it is a grant.
 Project should not exhaust the available resources like
raw materials and labor.
 Time control and remedial action
 Supervisors must be particular in:
 Time control measures
 Time scheduling
 Time extension and postponement
 Damages for non-completion
 Defect or warranty period
Project Implementation Plan includes
 Project implementation schedule and Supervision
 This includes set of checks and balances to ensure
that the time schedule is being adhered to.
Project Implementation Schedule
 Effective and balanced timing of the delivery of
various input requirements must be established
by accurate project scheduling.
 Various methods of analysis and scheduling are
available. The most simple and popular method
involves the bar or Gantt chart,
 3 steps:
 The planner determines the logical sequence of events
 The planner will analyze how specific tasks are to be
undertaken – subtasks
 Establish the implementation schedule showing the
proposed start & duration of project implementation
and the correct positioning and duration of all
activities and tasks
Project Implementation Schedule
 The description of each task should include:
 The work to be done
 The resources needed
 The time it takes to complete the task
 The responsibility for the task
 Information inputs required for the task
 Results to be produced
 The deliverables set being archived within each
project phase
 Interrelationship with other activities
 Project Planning

 A project can be broken down into a number

of subsidiary tasks.
 A number of project management tools exist
to allow the scheduling and resourcing of
each of these tasks.
 One activity that is central to all of this is
Project planning.
 Plan is a scheme or method worked out
beforehand for the accomplishment of an
objective.
 Project Planning
 A proposed or tentative project or course of
action, systematic arrangement of elements or
important parts, a configuration or outline is said
to be plan.
 The term planning implies the working out of
sub-components in some degree of detail and the
planned use of all resources.
 A project plan can be as simple as a list of tasks
that need to be carried out or it can be a complex
document involving a number of charts, tables,
costing, etc.
 Project Planning

 The plan is the detail of how the project

will be accomplished.
 The first stage of planning a project is to define
the objectives and goals of the project-
understanding the needs of the project and
defining clear, measurable objectives.
 Project planning is a project management
tool that displays the project tasks and the
time resources of each task.
 Project Planning
 Prior to the 1950s, projects were
managed on an ad hoc basis using mostly
Gantt Charts, and informal techniques
and tools.
 At that time, two Network Diagram
models:
 "Critical Path Method" (CPM) and
 “Program Evaluation and Review
Technique" PERT, were developed.
 Gantt or Bar Chart
Gantt chart is a scheduling technique used
for simple projects.
It is a visual project planning device that
spreads future time horizontally and the
activities to be performed vertically.
Since 1917; Useful for showing work Vs
time in form of bar charts
 Even though a lot of info, easy to read and ,
understand to monitor and follow progress,
it is not very good for logical constraints
Gantt Chart
 Network Techniques
These are more sophisticated than the
traditional bar charts.
In these techniques, the activities, events and
their interrelationships are presented by a
network diagram also called arrow diagram.
The two common types are:
 Critical Path Method (CPM)
 Program Evaluation and Review
Technique (PERT)
 Cont’d
Critical path method (CPM)
CPM is used where the project term
regards the time estimates for task
completion as being very sound.
Activity-on-node network construction
Repetitive nature of jobs
 Cont’d
Program evaluation and Review Technique
(PERT)
PERT makes an attempt to apply
rational scheduling techniques to
complex project.
Multiple task time estimates
(pessimistic, most likely and optimistic
Activity-on-arrow network
construction
Non-repetitive jobs (R & D work)
 History  Developed in 1950’s
 CPM by DuPont for chemical plants
 PERT by U.S. Navy for Polaris missile

CPM was developed by Du Pont and the emphasis was on

the trade-off between the cost of the project and its
overall completion time (e.g. for certain activities it
may be possible to decrease their completion times by
spending more money - how does this affect the overall
completion time of the project?)

PERT was developed by the US Navy for the planning and

control of the Polaris missile program and the emphasis
was on completing the program in the shortest possible
time. In addition PERT had the ability to cope with
uncertain activity completion times.
CPM calculation
 Path
 A connected sequence of activities leading
from the starting event to the ending event
 Critical Path
 The longest path (time); determines the
project duration
 Critical Activities
 All of the activities that make up the critical
path
Example
Develop the network for a project with following activities and
immediate predecessors:
Activity Immediate
predecessors
A -
B -
C B
D A, C
E C
F C
G D,E,F
 Network of Seven Activities
A D
1 3 4 G
7
E
dummy
B

C 5 F

2 6

•Dummy activity is used to identify precedence

relationships correctly and to eliminate possible
confusion of two or more activities having the same
starting and ending nodes
•Dummy activities have no resources (time, labor,
machinery, etc) – purpose is to PRESERVE LOGIC of
the network
 CPM PERT

1 Uses network, calculate float or

slack, identify critical path and Same as CPM
activities, guides to monitor and
controlling project

2 Uses one value of activity time Requires 3 estimates of activity time

Calculates mean and variance of time

3 Used where times can be Used where times cannot be estimated

estimated with confidence, with confidence.
familiar activities Unfamiliar or new activities

4 Minimizing cost is more Meeting time target or estimating

important percent completion is more important

5 Example: construction projects, Example: Involving new activities or

building one off machines, ships, products, research and development
etc etc
Project Problem Diagnosis & Monitoring
 Monitoring is an on-going process during project
implementation
 Its purpose is to alert management to any
problems that arise during implementation
 Monitoring works within the existing project
design, focusing on the transformation of inputs
and activities to outputs.
 It ensures that inputs are made available on time
and are properly utilized.
 If any unexpected results are observed, their
causes are noted and corrective action identified
in order to bring a project back onto target
Project Problem Diagnosis & Monitoring
Two forms:
 Process monitoring:
 the physical delivery of structures and
services provided by the project (activities)
 the use of structures and services by the
target population (outputs)
 the management of financial resources
 Impact monitoring:
 focuses on the progress of the project towards
achieving the project purpose and the impact
of the project on different groups of people
Project Control and Evaluation
 Project control involves a regular computation of
performance against target, a search for the cause of
deviation, and a commitment to check adverse variance.
 It serves two major function
i) it insure regular monitoring of performance and
ii) it motivates project personnel to strive for achieving
project objective.
 After a project is commissioned, its performance is
periodically reviewed
 If things turn sooner, the question of abandonment may
also have to be examined.
 Project Control
 Project control involves a regular comparison of
performance against target that causes of deviation and
a commitment to check adverse variances.
 Project control serves the following functions:
 It ensures regular monitoring of performance and
 It motivates personal to strive for achieving project
objectives
 The following are three main reasons for ineffectiveness.
 Characteristics of project
 People problems
 Poor control and information system.
 Variance analysis approach is the traditional approach to
project control.
 Project Control
 The variance analysis approach is inadequate for project
control for the following reasons:
 It is backward looking rather than forward looking.
 It does not use the data effectively to provide
integrated control.
 Performance analysis is the modern approach to control
and removes the subjectivity by employing:
 BCWS -Budgeted cost for work scheduled
 BCWP- Budgeted cost for work performed
 ACWP- Actual cost for work Performed
 BCTW- Budgeted cost for total work
 ACC-
 Project Control
 Achieving Team Member Self-Control:
For every member of the project team to be in
control of his or her own work.
A project manager can achieve control at the macro
level only if it is achieved at the micro level.
You should set up conditions under which every team
member can achieve control of his or her own efforts.
 To achieve self-control, team members need to do the
following conditions.
Clear about what her objective is.
A personal plan on how to do the required work.
The skills and resources needed for the job.
 Project Control
Receives feedback on performance that goes
directly to her.
The individual must have a clear definition of her
authority to take corrective action when there is a
deviation from plan
 Characteristics of a Project Control System:
Focus on project objectives, with the aim of ensuring
that the project mission is achieved.
control system should be designed with these
questions in mind:
What is important to the organization?
What are we attempting to do?
 Project Control
Which aspects of the work are most important to
track and control?
What are the critical points in the process at which
controls should be placed?
 If budgets and schedules are emphasized to the
exclusion of quality, only those will be controlled.
 Project managers must monitor performance carefully
to ensure that quality does not suffer.
 Taking Corrective Action: A control system should
focus on response. Control system should use deviation
data to initiate corrective action
 Timeliness of Response: Ideally, information on
project status should be available on a real-time basis.
 Project Control
 Project Review Meetings: There are two aspects to
project control.
 One can be called maintenance and the other aims at
improvement of performance.
 Three kinds of reviews are routinely conducted to
achieve these purposes: status reviews, process or
lessons-learned reviews and design reviews.
 Design reviews are appropriate only if you are designing
hardware, software, or some sort of campaign, such as a
marketing campaign.
 A status review is aimed at maintenance.
 Process means the way something is done, and you can
be sure that process always affects task performance.
 Project Control
 The expenditure authorization for a project
generally specifies how much can be spent by whom
and when.
 To ensure that the actual expenditure does not
deviate significantly from the authorized expenditure,
periodical control is exercised during project
implementation.
 Project Control
 An audit of a project after it has been commissioned is
referred to as post audit or post completion audit.
 Post audit will have the following advantages:
It improves future decision making.
It enables the project to identify individuals with
superior abilities in planning and forecasting.
It helps in discovering systematic biases in
judgment.
It induces healthy caution among project sponsors.
It serves as useful training ground for promising
executives who need broader perspective.
Project Evaluation
To evaluate a project is to attempt to determine
whether the overall status of the work is acceptable, in
terms of intended value to the client
Project evaluation appraises the progress and
performance of a job compared to what was originally
planned.
Evaluation provides the basis for management decisions
on how to proceed with the project.
The primary tool for project evaluation is the project
process review, which is usually conducted at major
milestones throughout the life of the project.
Evaluation.....
Delays in implementation and consequent
increases in project cost are very common.
Such delays may lead to the over-run of costs
and time.
The following are reasons mainly considered for
delay in implementation of projects:
Adequate formulation of projects:
Use of the principle of responsibility accounting:
Use of network techniques:
Exercise of proper control