Effective Project Management_handout

2013 RI CONVENTION

Effective Project Management

(& The Maji Mazuri Project)

Fred Abrams, PMP, CPL– Rotary Club of Dayton Ohio USA

Rakhee Kantaria– Rotary Club of Muthaiga, Nairobi, Kenya

2013 RI CONVENTION

Session Objective

• Understand how to apply the international (ISO) standards for effective project management to volunteer-run Rotary projects:

– Planning for control of cost and schedule– Managing risks that can derail the project

• Become the best possible steward of the donated money you are spending.

2013 RI CONVENTION

Session Outline

• Defining the project

• What Rotary says about project management

• The ANSI/ISO Standard for project management

• Managing the Maji Mazuri Project

• Lessons Learned

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The Project Scope• 1997 Visit To Kenya By Dayton Rotary

– Goal: A Project to Help Vulnerable Children

– Beneficiary Organization – Primary host for visit

– Picked a Host Nation Rotary Club Partner

– Defined the project

• Five Years and Three Rotary Matching Grants in Execution

– Total (RI and non-RI) Budget: $368,217

• RI Grant Content: $211,295• Outside of RI Grants: $156,922

– Managed as one consolidated project

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The ChallengeWhat We Found and How to help?

Vulnerable Children – AIDS Orphans Surviving in The Mathare Valley Slum

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How To Help ?

• Changing The Slum?– Overwhelming Challenge

• Helping The Children?– Rescue Kids and Establish A Sanctuary

• Safe and Self-Sufficient

– Provide Quality Healthcare and Education

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Some Project Highlights

• Visit By RI President Banerjee– Dec 2011– First project featured in his opening plenary comments in Bangkok (June 2012)

• Feature in “The Rotarian”March 2012

• Visit by RI President Tanaka –July 2012

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2013 RI CONVENTION

Rotary Foundation Guidance

• RI Document 605A– “Communities In Action – A Guide to Effective Projects”

– Top Level Guidance

• RI Document 1000 – new in 2012– “Grant Management Manual”– Focus on new “Global Grants”– Chapter 3 is project management– Sustainability Required

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RI Document 605A

(A Guide To Effective Projects)

• Chapter 2 – Choosing A Project– Fit the overall interest of the club

– Sustainable: long term solutions to chronic problems

• Chapter 3 – Making A Plan (4 pages)– Scope appropriate to club’s resources

– Project Work Plan & Detailed Budget

• Tasks, responsibilities, resources, budget, timing

• Chapter 4 – Taking Action– Raising Funds

– Managing Activities (especially managing volunteers)

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RI Document 1000

• Chapter 1 – Planning a Global Grant Project

– Develop Project Plan (Sustainable Solutions)

– Financial Management Plan (Budget/Financing)

• Chapter 3- Implementing, Monitoring, Evaluating (2 pages)

– Monitor how closely you are following the plan, adjust

– Evaluate against goals

– Disciplined financial recordkeeping

– Have technical reviews and site visits

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What Does Rotary mean by Sustainability?

• Economic– Self-Sufficient Operations

• Environmental– Local resources and Low Pollution

• Cultural– Include local leaders and diverse cultures

• Social– Training to prepare workers, men and women

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International Standard

For Project Management• The Project Management Institute (PMI)

– Source of ANSI/ISO Standard (www.pmi.org) – Guide to The Project Management Body of Knowledge

– PMBOK®Guide (587 Pages)– Training and International Certification in the standards (Project Management Professional –PMP)

• Some Key Elements of Effective Project Management

• Rigorous Requirements Process and Scope Definition• Rigorous planning considering dependencies and risks

– Based on, and controlled by a Work Breakdown Structure-WBS

• Project Scope is controlled, Changes are analyzed

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The Work Breakdown Structure -WBS

• Foundation of Effectively Planning, Executing and Controlling Projects

• Logical Grouping of the work to be done

– All work on a specific element is under one heading

– Not necessarily a timeline listing

• Costs, Schedules, Responsibilities and Risks are tied to individual lines in the WBS

– Work Packages – each with a budget and risk analysis

– Dependencies among WBS activities is depicted

• Schedule reflects dependencies

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Why Projects Fail - Two Key Reasons

• Planning did not consider risks to cost and schedule and adjust accordingly

• Once planned, the scope of the project was not controlled in a disciplined manner

– Changes made without re-planning and modifying the WBS and its work packages

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Defining Our Project

• The Beneficiary Organization– Maji Mazuri: 20+ years of success

– Head-start Center and Micro-enterprise in the Slum

– Owned Farmland in countryside SW of Nairobi

• Ambitious Goal– Create a self-sufficient sanctuary for AIDS orphans rescued from the slum

• Energy, Water and Food Self-Sufficient• Cost Reducing and Revenue Generating Business Model

– Farm industry and a Farm industry Building

• Provide Health Care and Education– Long Term: Build and equip a clinic and school

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Determining The Scope - Sustainability

• Cannot depend on charity to operate site

• Economic: Reduce Costs of Operation– Diesel Generator for electric to pump water

• Replace with Wind and Solar (Environmental Sustainability)

– Cooking Fuel – wood and charcoal• Replace with bio-gas (Environmental Sustainability)

– Food for children – extensive purchases• Increase on-site food production

– Barn and Animals– Irrigation (efficient micro-drip)– Assure adequate water (pumping and rainwater harvest)– Greenhouses for high yields

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Sustainability

• Develop Sources of Revenue– Water Sales

– Farm Product Sales– Farm Services Sales

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Self-Sufficiency: Emphasis on Sustainability

• Food Self-Sufficiency– Needs Water – Need Water Self-Sufficiency

• For People – Water Purity Essential• Crops and Animals – Efficient Use Essential

– Need Barn and Greenhouses

– Needs Cooking Fuel –Need Self-Sufficiency• Dependence on wood and charcoal expensive

– Needs Cooking and Serving Equipage – Needs Refrigeration

• Needs electricity

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Our Top Level WBS

• 1.0 Management• 2.0 Energy Self-Sufficiency• 3.0 Water Self-Sufficiency• 4.0 Facilities and Infrastructure• 5.0 Food Self-Sufficiency• 6.0 Child Health• 7.0 Education & Training• 8.0 Commerce (Revenue Generation)

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Management Dimensions

• 1.1 Project Management– 1.1.1 Project Plans– 1.1.2 Project Meetings

• 1.1.2.1 Local (Dayton)• 1.1.2.2 On Site (Kenya)

• 1.2 RI Grant Management– 1.2.1 Grant Proposals– 1.2.2 Grant Reporting

• 1.3 Financial Management– 1.3.1 Fund Raising– 1.3.2 Budget Execution

• 1.4 Website Management

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Our WBS – Detail Examples• 2.0 – Energy Self-Sufficiency

– 2.1 Electrical• 2.1.1 Wind Turbine• 2.1.2 Solar Cells• 2.1.3 Charge Controller and Battery Bank• 2.1.4 Inverter• 2.1.5 Power Distribution• 2.1.6 Building wiring and lighting

– 2.1.6.1 Existing Structures– 2.1.6.2 New Barn– 2.1.6.3 New Farm Industry Building– 2.1.6.4 New Clinic– 2.1.6.5 New School

– 2.2 Fuel• 2.2.1 Animal Bio Gas Plant

– 2.2.1.1 Anaerobic Digester– 2.2.1.2 Bio Gas Distribution– 2.2.1.3 Bio Gas Stoves

• 2.2.2 Bio Gas Toilets– 2.2.2.1 Anaerobic Digester– 2.2.2.2 Bio Gas Distribution– 2.2.2.3 Bio Gas Bladder Storage

• 2.2.3 Generator Conversion to Diesel/Biogas• 2.2.4 Bio Gas Sales

Note:Construction Non RIBudget Segregation

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Our WBS – Detail Level• 3.0 Water Self Sufficiency

– 3.1 Borehole• 3.1.1 Pump• 3.1.2 De-Fluoridation

– 3.2 Rainwater Harvest• 3.2.1 Collection & Storage

– 3.2.1.1 Existing Buildings– 3.2.1.2 New Barn– 3.2.1.3 New Farm Industry Building– 3.2.1.4 New Clinic– 3.2.1.5 New School

• 3.2.2 Pumping• 3.2.3 Chlorination

– 3.3 Micro-Drip Irrigation• 3.3.1 Phase One• 3.3.2 Phase Two

– 3.4 Solar Hot Water• 3.4.1 Phase One• 3.4.2 Phase Two

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The Planning Process

• Have a good definition of dependencies• Application to this project

– Food and Subsistence Depends on Water– Water Supply depends on

• Collection and Ability to Pump and Store– Ability to Pump depends on electricity

• Cannot afford to run diesel generator

• Top Priorities – Phase One– Electric Power – Wind and Solar– Rainwater Harvest– Micro-drip Irrigation for crop yields– Build a barn for animals

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WaterSelf-Sufficiency

Food Self-Sufficiency

Cooking

Grow Food Crops



Cooking



Grow Food Crops

Cooking



Grow Food Crops

Cooking





Grow Food Crops



Grow Food Crops



Cooking

Grow Food Crops



Raise Animals

Power

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Electrical Power Rainwater Harvest

Irrigation

Barn


Borehole Pump

Grow Animal Feed

Animals Manure

Distribution Pump

Bio-Gas Plant


Cooking

Grow Food Crops

Fertilizer

EggsMilkMeatDe-Fluoridation

Chlorination

Equip Kitchen/Dining Hall RI Grant Funded

Outside of Grant

Methane



Cooking



Grow Food Crops

Cooking



Grow Animal Feed

Grow Food Crops

Cooking





Grow Food Crops



Grow Animal Feed

Grow Food Crops



Cooking

Grow Animal Feed

Grow Food Crops



Borehole Pump

Rainwater Harvest

Borehole PumpBorehole Pump

Rainwater Harvest

Borehole Pump

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Agile Project Management

(For Those Familiar with Project Management)

• We actually used agile techniques– A detailed planning horizon

• The entire five year project was laid out at the beginning in three phases (and grants)

• 1.Electrical and Water projects (including irrigation) plus barn• 2.Bio Gas, Solar Hot Water, Greenhouses, Road, Farm industry• 3.Constructing and Equipping Clinic and School

• Detailed planning commenced as we progressed closer to the planning horizon– Asked: Does anything from prior phase need more attention? (…and it did!)

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Issues

• Rotary International Money cannot be spent on construction (e.g. building the barn) or on interior finishing of a structure (e.g. wiring for lights inside a building).

• Resolution– Find a donor to pay for construction of barn

– Mid Term: Donor for Farm Industry Building

– Long Term: Donors for clinic and school

– Use Dayton Rotary funds for wiring

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2013 RI CONVENTION

Self-Sufficiency - Food

• Barn: Get Bid, Raise Money, Contract

– Outside of RI Grant – Non-Rotarian Donor

• Greenhouses (Frame and Plastic-not construction)

– Place in next grant application

– Include rainwater harvest, irrigation, bug screens

• Animals: Provide after Barn Built

– Heifer International

• Church Adoption of Project via Heifer

– Rotary Inner Wheel, other donors.

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2013 RI CONVENTION

Self-Sufficiency -Food

• Implement Bio-Gas for cooking– Anaerobic Digester for cow manure

• Put in second grant application

– Expand to Bio-Gas Toilets• Put in long-term plan (third grant)

– Bladder Storage of methane• Put in long term plan (unfunded option)

– Increased Capacity and pump to allow sales• Put in long term plan (unfunded option)

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Self-Sufficiency - Food

• Provide for farm industries– Processing crops

– Preparing animal feed• Silage Production, Hay baling• Sunflower seed processing

– Sell services for revenue generation

– Construct a farm industry building• Outside of RI Grant

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Economic Sustainability

Inter-relationships

• Grow Sunflowers/Harvest Seeds

– Use Rotary Provided Press to extract oil

• Use oil for cooking– reduce expense of purchase

• Make “Sun Butter”– Consume or sell

• Sell oil not needed– generate revenue

– Use residue as chicken feed

• Reduce cost of feeding chickens• Eggs and meat for children – reduce food costs• Sell excess in marketplace – generate revenue

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The Big Plan

• Expand Irrigation as water availability increases

• Provide solar hot water for kitchen and hand washing

• Add refrigeration and freezer

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New Demands - (Scope Increases)

• Greenhouses very successful– Double the number

• Power demands grow more than expected– Increase solar and batteries, larger inverter and decrease pump electrical load

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Risk Management (Beyond Technical Risks)

• Risks can be negative or opportunity• Task Duration

– How long will something take• Especially where other tasks depend on it’s completion to start

• Task Cost– Changes in exchange rate and Cost Inflation

• From Quote to Funds Available

– Contingency Reserve in quotes

• Risk is the product of the likelihood it happens and the impact if it happens.

• Identified Risks should be constantly monitored

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HOW RISKYIS

EACH TASK?

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Risk Distribution

• What most people think

Most Likely

Optimistic-Less Cost-Less Time

Pessimistic-Higher Cost-Longer Time

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Duration and Cost– The Reality

Likelihood

DurationOr Cost

WorstCase

BestCase

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Duration & Cost

Likelihood

DurationOr Cost

Most Likely

“MODE”

WorstCase

Average

“MEAN”Midpoint“MEDIAN”

80%

RESERVE

HOW RISKY ISTHIS ACTIVITY?

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Cost Risk

• Exchange Rate– RI Provides a value to use for each country

• Inflation

• Planning for risk– Cannot pad RI Grant quotes

– Can have quotes include contingency reserve

– “Quote Valid” timeframes awaiting funding

– Best to include things in the grant budget than can be dropped off if higher priority needs demand more money. Things you want to do, but not critical

• Re-program or defer content if needed

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Addressing Risks

Once Identified & Analyzed

• Avoidance– Can we do something less risky?

• Mitigation– Can we reduce the likelihood of the risk?

– Can we reduce the impact from the risk?

• Deflection– Can we insure against the risk impact?

• Includes warranties on material and performance

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Risk Example

• RI Grant for Maji Mazuri included

– Two Phases of Solar Hot Water Heating

• #1 - Dish and Hand Washing Demands (essential)

• #2 – Hot water for showers (very desirable)

• Encountered Electrical Issues – $$ needed (negative impact)

• Greenhouses were phenomenal success (opportunity)

– Desirable opportunity to increase from 4 to 8 bays

• Reprogrammed funds from solar hot water phase 2

• Key – New demands were already in the project plan simplifying tradeoff reprogramming.

• Overall Budget – no change

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Dedicating The Greenhouses

• July 2012 – President Tanaka’s FIRST overseas project visit

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2013 RI CONVENTION

Risk Example

• RI Grant Included Fixing road to site to assure all-weather access. Critical Need.

• Grant Budget assumed worst case changes for each road segment and use of single contract to a road contractor.

• Strategy: Included road work into clinic and school construction contract – segregated line items.

• Reality: – Budget: Ksh 937, 500 (US$ 11,000)– Actual: Ksh 440,000 (US$ 5,200)

• Surplus held in reserve through next rainy season to confirm adequate fix and then reprogrammed– Had to add Fluoride Filtration to borehole water after Rotarian Article in March 2012 led us to test water for fluoride.

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Road Today

Rock Backfill

Culverts

Drainage Ditches

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Risks Harder To Predict

• Political Turbulence– Delays in dealing with government– Unrest impacting security

• New and urgent requirements– Scope changes needed.

• Delivery Schedule Promises not kept• Weather and its impacts

– Drought versus rain impact to roads

• Plan not followed– Critical activity omitted

• Fundraising Risk – ability to raise money needed– Especially for non RI Grant Construction aspects

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Implementing Bio-Gas Risks

• Design Assumptions on manure– Quantity and Quality

• Qualifications of vendor– Double check by outside experts

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Rotary Built A Bio-Gas Plant

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Meeting Fundraising Risk

• Funds Needed for DDF and RI Match– Implemented an adoption program

• Funds Needed for construction– Obtained large challenge grants – Involved non-Rotary organizations (churches)

– Adoption program for buildings & classroomsElement Cost RI Money Donation Source

Construct Clinic $38,500 $0 $38,500 Cincinnati RotarySchool Computer Room $11,000 $0 $11,000 Tipp City Rotary

Element Cost RI Money Donation SourceSchool Rainwater $750 $350 $400 Middletown RotaryBio-Gas Stoves $600 $200 $400 Batavia Rotary

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2013 RI CONVENTION

Funding Maji Mazuri Project: $368,217

Dayton Rotary and Rotarians

38%

6670 DDF15%

RI - TRF13%

Rotary Clubs - other than Dayton

20%

Churches3%

Non-Rotarians10%

Rotarians - Direct1%

$145, 294

$78,000$60,000

$50,000

(Non-6670)

21 of 50 ClubsIn District 6670

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2013 RI CONVENTION

Meeting The Sustainability Challenge

• Economic (Self-Sufficient Operations)

– Cost Reductions and Revenue Generation

• Environmental (Local resources/Low Pollution)– Used locally manufactured products, Green Energy Sources

• Cultural (Include local leaders and diverse cultures)– Coordination with surrounding Masai population – advantages

– Mixing of ethnicities (tribal backgrounds) in school

– Hosting inter-tribal cooperation workshops at site

• Social (Training to prepare workers, men and women)– Vocational focus included in newly built and equipped school

– School population ended up well over 50% girls

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Partner Roles

• Dayton Rotary (same PM for entire project)– Overall Grant and Project Management

– Fundraising for matches and construction

• Muthaiga Rotary (3 different PMs in 5 years)

– Funds Management– Facility Specifications for contracts– Contract Management / Quality Assurance

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Surprises and Lessons Learned

• Impact of violence after 1997 elections– Expansion of scope to include IDP camp girls

• Planned 50/50 boys-girls was unrealistic– And should have been obvious to us

• Warranties on technical aspects critical• You can’t force your beneficiary organization to follow all your plans for them

• Following project management standards makes a big difference

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Bottom Lines

• Applied Rigorous Project Management

– Cost and Schedule Controlled– Tradeoffs and Reprogramming accomplished

• Self-Sufficient Sanctuary Established

– Energy, Water, Food– Green Goals Implemented

• Children safe, receiving health care and education

• Addressed all goals for RI Grants and Reach-Out to Africa (ROTA)

• Superb support and participation by RI Districts 6670 (Ohio) and 9200 (East Africa)

2013 RI CONVENTION

2013 RI CONVENTION

Thank You – Rotarians !

2013 RI CONVENTION

Effective Project Management_handout

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