Project Planning and Management: An Aspect of Development

Table of Contents

Chapter One
1. Introduction
1.1. What is a project?
1.1.2. Project Life Cycle

Chapter Two
2. PROJECT PLANNING AND ANALYSIS
2.1. Planning for Project Implementation
2.2. Key issues of Planning for implementation
2.2.1. Project organization (structure)
2.2.2. Project implementation plans
2.2.3. Functions of planning
2.2.4. Areas of planning
2.2.5. Role of the planner in the implementation activity
2.2.6. Factors that affect plan implementation
2.2.7. Why planning is important

Chapter Three
3. PROJECT MANAGEMENT
3.1. Major goals in project management
3.2. Types of management in the Project Cycle
3.2.1 Integration management
3.2.2. Scope Management
3.2.3 Time management
3.2.4. Cost management
3.2.5. Quality Management
3.2.6. Project communication management
3.2.7. Project Human resources management
3.2.8. Project risk management
3.2.9. Project procurement management
3.3. Logical Framework Matrix
3.3.1. Feasibility and Viability Analysis and Decision Making
3.3.2. Feasibility Study
3.3.3. Feasibility Analysis and Appraisal Projects
3.3.4. Need Analysis
3.3.5. Problem/ Need Analysis
3.3.6. Need and Needs Assessment
3.3.7. Capacity Assessment
3.3.8. TRADITIONAL PROJECT CYCLE AND NEW PROJECT CYCLE

Chapter Four
4. MONITORING
4.1. Monitoring indicators

Chapter Five
5. EVALUATION
5.1. Importance of information gathering, analysis and application
5.2. Project Information System
5.3. Information Users
5.4. Kind of information needed for Monitoring and Evaluation
5.5. How to ensure that the information is accurate and reliable
5.6. How to ensure that the information is relevant to user needs
5.7 How to ensure that information is available on time

Chapter Six
Winding up
6. Introduction
6.1. Data collection
6.2. Data analysis
6.2.1. Analyzing data for Monitoring and Evaluation
6.3. Report writing

References

Chapter One Introduction

1.1. What is a project?

A project comprise a series of activities (investments) that aim at solving problems within a given time frame with a clear set of objectives for man’s benefit. It is an undertaking that involves the commitment of scarce resources in the expectation of future benefits. According to Heagney (2012: 2), a project should have a definite starting and end point (time), a budget (cost), or a certain magnitude of work and specific performance. Before achieving the objectives, a project goes through several stages of a project cycle.

The Project life Cycle refers to a logical sequence of activities to accomplish the project’s goals or objectives. Regardless of scope or complexity, any project goes through a series of stages during its life. The first stage is the birth phase or Identification. In this stage the outputs and critical success factors are defined. This is followed by a Planning phase, characterized by breaking down the project into smaller parts/tasks. In the Execution phase, the project plan is executed, and lastly a Closure or Exit phase, marks the completion of the project. The project cycle has seven stages, each stage links with the preceding one and leads forward to the next one. These include Identification, Preparation, Appraisal, Implementation, Monitoring and Evaluation and winding up.

1.1.2. Project Life Cycle

Identification

Winding up

Preparation

Evaluation

Monitoring Appraisal

Implementation

Identification: This involves the conceptualization of the project ideas. The ideas may be triggered by some need or demand that becomes obvious to an entrepreneur, organization or institution. Heldman (2011 : 2) says that projects are meant to produce a unique product or service that has not been produced before. It therefore requires innovativeness and creativeness.

Who identifies projects?

- Government ministries
- Development government institution
- Local government
- AID agencies
- Other NGO’s
- Private sector companies
- Politicians or other individuals.

Means of identification of projects

- Government development planning
- Program developed by donors
- Surveys by organizations
- Reviews of part policy or projects
- Private sector cooperate planning

Preparation (design): This phase of the cycle requires leaders and managers to research both the needs and the impact of the project. The design involves spelling out the objectives of the project. It is the planning stage and refers to the formulation and design of the project. It involves the detailed articulation of the project ideas into a project proposal. The initiation stages are sometimes referring to prefeasibility studies. This way then can be followed by feasibility studies and finally project proposal.

Appraisal: Appraisal gives stakeholders an opportunity to review the project design in detail and resolve any outstanding questions. The appraisal of the project is a critical and systematic review of all the aspects of the project with the aim of providing reliable information to proceed or not to proceed with the project (is it a good idea? Is it going to work?). This involves checking estimates of project’s costs of resource and the expected flow of benefits from the project along with possible financiers and beneficiaries. The appraisal report and revised project proposal may be used in soliciting funds for the project. Project appraisals critically examine the technical, financial, economic, social, institutional, environmental, legal “feasibility of the project”.

Implementation: This stage involves the carrying out of the most activities of the project. Most of the project funds are disbursed at this stage. Fixed assets are obtained and production or service delivery is undertaken at the implementation stage. As problems often occur in implementing projects, it is normally essential to monitor the implementation of the project. It involves the continuous assessment of the performance of the project to find out if it is working according to plan. Executing consists of the processes used to complete the work defined in the project management plan to accomplish the project’s requirements. Execution process involves coordinating people and resources, as well as integrating and performing the activities of the project in accordance with the project management plan. The deliverables are produced as outputs from the processes performed as defined in the project management plan.

Monitoring. Monitoring is performed while a project is being implemented, with the aim of improving the project design and functioning. Regular observation to find out and follow up of the project implementation to find out if project is on track with respect to objectives, budget, time and other criteria. Monitoring helps to troubleshoot for antilogies cost over runs etc.

Evaluation. It may be midterm or end term evaluation. Evaluation involves systematic assessment of the performance of the project with respect to the goals and objectives set originally. The performance of the project in respect of financial budget, timeliness, benefits of cost projections and other aspects are examined and suggestions for any necessary adjustment improvements or control are made. Bamberger describes evaluation as “mainly used to help in selection and design of future projects. Evaluation studies can assess the extent to which the project produced the intended impacts (increase in income, better housing quality, etc.) and the distribution of the benefits between different groups , and can evaluate the cost effectiveness of the project as compared with other options.”

Winding up: The final project process phase is the wrap up process. In this phase of project process, the project comes to an end. The project manager is responsible here to for wrapping up the entire process.

Chapter Two 2. PROJECT PLANNING AND ANALYSIS

This refers to the design of the project and involves the gathering of relevant information through feasibility studies and market research and carrying out preliminary cost benefit analysis to find out if this project will be sufficiently beneficial to target group, owners or country at large. The output of the planning process will be the project proposal. Project analysis and planning are normally undertaken during the design and preparation stage and involve;

- Analysis of Market Proposals

Analyses the demand for the projects output.

- Analysis of technical feasibility

Analyses technical feasibility in terms of inputs, technique, scale, engineering, machinery, treatment of waste and others.

- Analysis of financial feasibility

Analyses the financial viability by looking at projected outlay and receipts among others.

- Analysis of Economic feasibility

Analyses the benefits of the project to the nation, National resource, allocation and distributional effects.

- Analysis of Ecological effects -

Analyses the environment through environmental impact assessment.

2.1. Planning for Project Implementation

Planning is an arrangement for doing something which is considered in advance. It means determining what is to be done how, when and by whom. It lays down the objective of pursuit and a specific course of action to achieve it.

Planning is deciding in advance what to do, how to do it and who is to do it. Planning bridges the gap from where we are to where we want to go. It makes it possible for things to occur which would not otherwise happen.

2.2. Key issues of Planning for implementation

2.2.1. Project organization (structure)

Bureaucracy and other forms of traditional organizational structures are not suitable for projects management. A project call for different forms of organizations, sharper tools of planning & control and improved means of accommodating human resource.

A project may take the following forms of organization:

- Line and staff organization (with a project coordinator who facilitates the coordination of line management in functional departments). This is suitable for small projects.
- Divisional organization (where a separate division is set up to implement the project headed by a project manager suitable for big projects).
- Matrix organization; where responsibility is shared between the project manager and line managers.

2.2.2. Project implementation plans

Projects require formal plans. Plans are required for effective planning for smooth flow of the project cycle.

2.2.3. Functions of planning

An implementation plan is a vital aspect of management and serves several important functions;

- It establishes a basis for monitoring and evaluation.
- It provides a basis for organizing work in a project and allocating responsibilities.
- It instills a sense of time consciousness.
- It provides a means of coordination and control of a project

2.2.4. Areas of planning

A project plan must incorporate the following:

- Work plans (planning project work), the activities of the project must be properly scheduled and sequenced.
- Planning the manpower and organization. Manpower for the project must be estimated (don’t under estimate or over estimate).
- Planning for money (budgeting).
Expenditure and income must be time phased and budgeted.
- Planning the information system, the information required for managing and monitoring the project must be defined.

2.2.5. Role of the planner in the implementation activity

- Monitoring, mobilizing, organizing and management of resources to ensure that they are incorporated in the planning activities.
- Coordinate, assemble, control and manage resources to achieve what is required.
- Analyses, determine and communicate to management, anticipated existing project needs.

2.2.6. Factors that affect plan implementation

- Timely availability of funds
- Nature of the planning process
- Proper implementation planning; (systematic, sequential).
- Sound project organizational structure.
- The human resource (unskilled)
- Content of plan/adequate formulation
- Management of the implementation process

Lewis, (2011: 189), emphasizes that failure to properly define the problem and establish vision and mission of the project will make the project fail to achieve the intended objectives.

2.2.7. Why planning is important

- Planning guides implementation of the project.
- Motivates staff through proper resource planning and management.
- Planning ensures smooth running of projects.
- Planning helps to think a head and prepare for the future.
- It ensures the right direction.
- Identifies issues that need to be addressed
- Allocates resources and responsibilities
- It helps stakeholders to choose between options.

Chapter Three PROJECT MANAGEMENT

According to encyclopedia, project management is the discipline of planning, organizing, and managing resources to bring about the successful completion of specific project goals and objectives.

Project management is largely required during implementation stage of the project.

Project management covers; integration management, scope management, time management, cost management, quality management, human resource management, communication management and procurement management.

Project management requires that one apply their personal knowledge, skills, tools, and techniques towards an activity in order to meet the requirements of a project assigned. Project management involves planning, organizing, decision making, directing, coordinating, monitoring, scheduling and controlling of all the combined activities in order to ensure successful completion of the project objectives. Melton, T.(2008 : 6), stresses that a project is construed to mean an independent undertaking with a unique purpose and conditions to be managed by artificial structures or technical systems.

It is effectively working to coordinate and manage individuals to work towards a common goal or objective to complete a task.

3.1. Major goals in project management

- Attainment of objectives.
- Financial sustainability.
- Maximizing the beneficial impact.
- Efficiency of the project.
- Social sustainability.
According to Ian Dorton (1998: 198), the there are two main objectives of project management. These include;
- Finishing the project within the agreed available time.
- Finishing the project within the planned budget.

All the intended objectives are meant to increase efficiency reduces the costs of production, increase transparency, and achieve the best out of the available scarce resources.

3.2. Types of management in the Project Cycle

3.2.1 Integration management

Describes the process required to ensure that the various elements of the project are properly coordinated. It consists of the project plan development, plan execution and overall change control. The project integration ensures that the project is managed as a unit of related activities.

3.2.2. Scope Management

The project scope is the definition of what the project is supposed to accomplish and the budget (time and money) that has been created to achieve these objectives.

Describe the process required to ensure that the project activities include; All the work required to successfully complete the project and realize the objectives specified for the project. It involves the scope definition, scope planning, scope benefaction and scope change control. Grundy (2001: 26) emphasizes the need of scoping the project through identifying the key project objects for effective project management. This may be in form of identifying the size of the project, the stakeholders among other factors needed to bear in mind for effective project management.

3.2.3 Time management

Relates to the management process required to ensure that the project is completely timely (in time). It involves the definition of the activities the estimation of the duration of the activities developing the schedule for the activities of the project and controlling that schedule.

3.2.4. Cost management

Involves the process required to ensure that the project is completed within the stipulated budget. It consists of resource planning, cost estimating, cost budgeting and cost control.

3.2.5. Quality Management

Involves the management processes in ensuring that the project delivers outputs that meet the quality specifications set in order to satisfy stake holders. This consist quality planning, quality assurance and quality control.

3.2.6. Project communication management

Includes processes required to ensure timely and appropriate generation, collection, dissemination, storage and ultimate disposition of project information. It provides the initial links among people, ideas and information that are necessary for the files of the projects. It includes communication planning, information distribution, performance reporting and administrative closure processes.

3.2.7. Project Human resources management

Includes processes required to make the most effective use of people involved with the project. It includes all the project stakeholders, the sponsors, staff, customers, individual contributors and others. David, N (1999:356), stresses that human resource management not only is important for human resource issues but also vital for total integration within corporate objectives of the enterprise. It involves organizational planning, staff acquisition and team development. Kendrick (2011:83) stresses that building a high performing team involves brainstorming planning and embarking in team building activities that helps to achieve good working relations and mutual trust. Team work helps to assist even the less skilled workers through mentoring and guidance that generally lead to increased labor productivity.

3.2.8. Project risk management

It involves the process of identifying, analyzing and responding to project risk. It includes maximizing results of positive events. It includes risk identification, risk qualification, risk response development, risk response control etc. Kendrick (2009:2) shows that effective project risk management is needed to understand the challenges ahead so as to anticipate the possible risks. Past failures can be used to avoid future problems through planning for risk management.

3.2.9. Project procurement management

Involves the processes required to acquire goods/service from outside the performing organization. It includes the processes of procurement planning, solicitation, source selection contract administration, contract close out etc.

A successful manager must effectively manage the resources assigned to the project. (Reh ,1997). This includes the labor hours of the designers, builders, the testers and the inspectors of the project team. It also includes managing any labor subcontracts. Managing the people resources means having the right people, with the right skills and proper tools, in the right quantity at the right time. It also means ensuring that they know what needs to be done, when and how. And it means motivating them to feel a sense of belonging while at work.

Project management means effectively working to coordinate and manage individuals to work towards a common goal or objective to complete a task. The project management requires that one apply their personal knowledge, skills, tools, and techniques towards an activity in order to meet the requirements of a project assigned. Project management involves planning, scheduling, and controlling of all the combined activities in order to ensure a successful completion of the project objectives. There are three concepts that are part of any project no matter what type of project is being worked on. These three concepts include project processes, project life cycles, and project management systems.

3.3. Logical Framework Matrix

This is usually a 4 x 4 matrix in which the first column summarize the activities, output, objectives and goals in a hierarchical order as delivered from the objectives analysis.

- Second column defines objectively verifiable indicator (OVI) required to be able to determine whether the objectives and goals are being attained.
- Third column describes the practical steps involved in estimating or means of verifying (MOV) of the objectively verifiable indicators in column three.
- The 4th Column represents all those factors assured given but not part of the project intervention, i.e. Assumptions. They are therefore external factors. If they not hold, then they constitute risks.

illustration not visible in this excerpt

What is a logical frame work?

This is a tool used to strengthen project design, implementation and evaluation. Although it is constructed during the prime stage of the project, the logical framework is a living document that should be constructed and altered throughout the project’s life cycle.

The logical framework has four columns where all the key parts of the project can be inserted as a clear set of statements.

The project goal, purpose output and activities with their indicators, evidence and assumptions shows the project structure and describes the project logically.

The logical framework doesn’t show every detail of the project. It is an overview of the key factors; details can be given on other document such as the proposal, the budget and activity schedule that accompany the log frame.

Why use a logical frame work?

- To help to think logically.
- To help people organize their thinking.
- To help identify weakness in the project design.
- To ensure key indicators are identified from the start of the project so that monitoring and evaluation become easy.
- It summarizes a project plan on a piece of paper.

How a log frame works.

The long frame asks a series of the following questions:-

- Where do you want to be? (goal & purposes)
- How shall we get there? (this is by looking at results and activities)
- How shall we know when we have got there? (Indicators).
- What will show us we have got there? (evidence)

3.3.1. Feasibility and Viability Analysis and Decision Making.

While an opportunity study is undertaken to develop an entrepreneurial interest, the pre-feasibility study has to take into consideration such aspects as to when the entrepreneurs’ response is forth coming.

Rationale of Pre-feasibility Study and objectives of the study

Undertaking of feasibility study is costly, skilful and time consuming task, therefore before committing and assigning funds for such study a preliminary assessment of the study idea should be carried out i.e. a pre-feasibility study should be carried out

A pre-feasibility study can be viewed as a series of steps originating from a document which permits determination of whether/not complete detailed feasibility study should be made. The objectives of the study include:-

- Whether the project concept justifies a detailed analysis by a feasibility study.
- Whether the project is promising and an investment decision can be taken from the basis of the information furnished at the pre-feasibility stage.
- Whether information is adequate to decide that the project idea is lucrative.
- Whether any aspects of the projects are critical to its pre-feasibility and necessities in-depth investigation through functional/support studies such as, market surveys, pilot plant tests, laboratories etc.

All this will enable the project to gain in terms of knowledge and confidence by focusing on the special characteristics of the project to construct a detailed study plan.

Checklists for preparation of Pre-feasibility Study

It is necessary at the pre-feasibility stage to examine broadly the following:-

- Market and plant capacity:

Here you consider the present size of demand of your products and also look at the growth of market of your products in the area of coverage, competition.

Also the plant capacity is determined in order to avoid over production or excess production.

- Material inputs.

These may involve source of raw materials for manufactured products.

- Location

This concerns the location of the project engineering. Here technology to use and type of equipments to use in the project thought of are considered for example appropriate technology –when using local technology.

- Organization and over heads.

Taking note of the organizational structure, organizational layout in respect to production e.g. Sales and marketing, administration and management etc.

- Man power

Stating whether the project will be labor intensive or capital intensive, mentioning of staff and skills required is very important.

- Project implementation

Here the detailed implementation schedule is indicated showing the whole project implementation program.

- Financial and Economic evaluation

Here the whole project activity and costs such as fixed costs are evaluate.

3.3.2. Feasibility Study

A feasibility study is a preliminary study undertaken to determine and document the project’s viability. The results of this study are used to make a decision whether to proceed with the project or not. Dinsmore (2011 : 369) stresses that project management is dynamic and therefore responds to changes in the environment for instance technological, cultural and sociological changes. This situation calls for a feasibility study to ascertain the viability of the project.

It is an analysis of possible alternative solutions to a problem and a recommendation of the best alternative.

A feasibility study could be used to test the proposal for the new system which could be used because:-

- The current system may no longer carry its purpose.
- Technological advance may have rendered the current system obsolete.
- Customers are complaining about the speed of quality of work a business provides.
- The business is expanding allowing it to cop with extra work load.
- Competition is now winning a big market share due to ineffective intervention of computerized system.

Advantages of making feasibility study

There are many advantages of carrying out feasibility study, some of which are summarized below:-

- Provide a thorough examination of all issues and assessment of probability of business success.
- It helps to increase investment in the company.
- Avails new opportunities through the investigative process.
- Identify reasons to or not proceed.
- Enhance the probability of success by addressing and mitigating factors early that could affect the project.
- Provides documentation that the business venture was thoroughly investigated.
- Gives focus to the project and other alternatives.
- Provides quality information for decision making.
- Helps in securing funding from lending institutions and other monetary sources.
- Helps in planning for risk analysis.
- Feasibility study helps in making plans for training developers for implementing the system.
- Helps in making cost/benefit analysis which helps the organization of the system to run effectively and effectively.

Therefore a feasibility study is a report which could be used by the senior or top persons in the organization. This is based on the report the organization decides about cost estimation, funding and other important decisions which is very essential for organization to run profitably and for the system to run smoothly.

Steps in conducting feasibility study.

- The main objective of the feasibility study is to determine whether a certain plan of action is feasible; whether or not it will work and whether or not is worth doing economically. Although the core of study is indicated to showing the outcome of specific actions, it should begin in evaluation of the entire operation. e.g. a good feasibility study would review the company strength and weaknesses, its position in the market place and its financial situation.

It would also include information of a company’s major competitors, customers and any relevant industry trend.

Feasibility study is done in order to predict the results of a specific future course of action. Feasibility study will help you accurately anticipate what will not work in valid situations. A feasibility study can also lead new ideas for strategic changes.

- The second part of a good feasibility study should focus on proposed plan of action and provide detailed estimate of its cost and benefits. In some cases, a feasibility study may lead the management of the company to achieve the same benefits through earlier and cheaper means e.g. It may be possible to improve the manual filing system rather than purchase and expensive new computerized data base.

If the proposed project is determined to be both feasible and desirable, the information provided in the feasibility study can be used to develop a strategic plan for the project translating general ideas into measurable goods.

- In most cases feasibility study should be performed by qualified consultants in order to ensure its accuracy and objectivity. To be able to provide a meaningful analysis of the data, the consultant should have expertise in the industry. It is also important for a small business to assign an internal person to help gather information for the feasibility study. The small business owner must be sure that those conducting the study have full access to the company and the specific information they need.

3.3.3. Feasibility Analysis and Appraisal Projects

Feasibility studies determine if the project can be implemented according to the standards and criteria forth in the preliminary design. Within a feasibility study, the following areas must be reviewed:-

- Needs analysis
- Technical feasibility study – manpower and technical requirements.
- Schedule feasibility study
- Cultural feasibility study
- Legal feasibility study
- Marketing feasibility study
- Economic feasibility study (cost of benefits)
- Administrative feasibility study (internal organization / external linkages)
- Social/political feasibility (demographic data and social needs)
- Financial feasibility (for funding needs and sources).
- Environmental feasibility

These will answer the following interrelated questions.

- Is the proposed project responsive to urgent present or anticipated social and economic needs?
- Will the project as planned adequately serve/fulfill the intended purpose without harming the environment?
- Will the benefits of the project to both society and the economy be justified by the costs?
- Should various technical alternatives be studied to optimize the cost effectiveness of the project without sacrificing its quality?
- Do the feasibility studies provide sufficient baseline interior and measures to establish a checklist for subsequent project implementation and evaluation?

3.3.4. Need Analysis

A need analysis should be the first undertaking of a feasibility study as it clearly defines the project outline and the clients’ requirements. Once these questions have been answered, the person undertaking the feasibility study will have outlined the project needs definition.

The need analysis therefore caters for the stakeholders interests. Richman (2012: 18) regard stakeholders as individuals and organizations who have interest in the project and these include those who benefit from the project, those who contribute to the project and those who are impacted by the project. To do proper need analysis, it is important to identify all the stakeholders.

Technical feasibility

This is the foundation of all other feasibility study or reports. It establishes further design inferior conducts in engineering studies to determine physical and technological alternatives and meet budgetary and social, political requirements, outline the forms that activation and implementation will take and estimates the scheduling inputs and outputs satisfy both immediate and development goals.

What are the costs of constructing public facilities? Is there any adequate choice of available technologies for alternative design purposes, considering the physical layout and availability of raw materials.

[...]