Project Planning and Management Summary 505 by Avit Theophil

Prepared by Avit Theophil, MKU-Nairobi Campus 2013

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PAM 505: PROJECT PLANNING AND MANAGEMENT

TOPIC ONE: PROJECT CONCEPT

Definition: A sequence of unique and connected activities having one goal/purpose and must be

completed in a specific time within budget and specification.

Project characteristics:

a. Single and definable goal : SMART

b. Specific time

c. Sequence and connected activities

d. Customer/sponsor

e. Completed with a budget

f. Involve uncertainty and risk

Project parameter/ constraints:

a. Scope (boundaries of the project)

b. Time (deadline)

c. Quality (products and process)

d. Resources (people, equipments, physical facilities and materials)

Project features:

a. Nature of the project solution (learning and discovering)

b. Pace (steps) of project development (planning phase and management to ensure rapid or

gradual results)

c. Intention of the project (that is efforts on the solution, satisfactory, interest and directions)

d. Existence of changing goals caused by:

Market changes

Senior management priorities

Lack of clear strategy

Project with outside links (cooperation from different organizations, commitments and

interests)

Changing in project environment

Planned or emergent projects 9result of opportunities and events)

In summary: definition of the term project; characteristics; constrains; project features and finally

causes for changing of goals.


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TOPIC TWO: PROJECT MANAGEMENT

Definition: is the discipline of planning, organizing, securing and managing resources to bring about the

successful completion in achieving a specific goal).

Project management Vs General management

Project management General management

1.Cross functional team work

2.Requires special skills

in conflict resolution

3.Requires flexibility

and creativity

4.Requires detailed planning

5.Projects has a schedule of

its own

6.Project manager has

little legitimate authority

1. Routine well defined

organization

2. Require management by

exception

3. Dependent on good planning

4. Sequence of activities in

manufacturing management is set

when the production line is

designed

5. General manager has authority over all

operations

Project management vs Discipline management

Project Management Discipline Management

1. What must be done

2. When it must be done

3. How much it will cost

4. Coordinating overall

needs/resources

5. Multi discipline focus

6. Project quality

8. Administrative view point

9. Generalist approach

1) How it will be done

2) Who will do it

3) How well it will be done

4) Coordinating specific needs

5) Single discipline focus

7) Technical quality

8) Technical view point

9) Specialist approach


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Historical development of project management:

Said to begin with man since ancient times remember construction of pyramid in Egypt, Chinese great

wall the reasons for associate with construction is that require special organisation, facilities, labour,

materials resources input at various stages of development. During 1WW witnessed use of scientific

management approach and function within military operations, and ideal of Gantt chart was used for

scheduling and monitoring of activities.

However, there have been development in project management in terms of tools and application in

fields.

For instance in 1960s the USA Department of Defense through the NASA programme were the first to

use project management.

In 1970s more development concept of planning and tracking projects came into use.

1980s use of information technology, emergence of project management profession, monitoring and

evaluation techniques and full cycle project management.

Today we have project management institute on know ledged on subject including application,

management principles and practices for successfully project management. These areas includes Project

cost management, project risk management, project time management etc.

Specific roles of project management:

Its all about methods, techniques and accepted principles used for planning, estimating, and controlling

work activities for desire results and specifications.

a. Process context: problems, needs, opportunities and solutions its usually follow the phase forms

including: Definition phase (identify, define problem and solution) > planning phase (activities,

resources, costs budget risks) > execution phase (maintain control and communication) > close

out phase (lesson learnt, studies, evaluation and audit)

b. Interpersonal and behavior context: leading, coordinating people and team for skills and

knowledge sharing, get effective working team.

c. The organizational context: ability to carry projects, management

Measurement of project success:

Exists in four (4) levels each with its perspectives and set of matrices

Level 1: Meeting project targets

Level 2: Project efficiency (how well project managed),resources, cost, conflicts, efficiency etc

Level 3: Customer user utility extent the project fulfils its mission in solving the problem (services

satisfied etc.)


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Level 4: Organizational improvements how organisation learned from the project and improved chance

for the future projects

Best practices in project management:

Project management best practices tie in with the project success. Project management best

practices depend on the level of project management competence and project management

maturity within an organization. To have successful projects we must have a focused and

deliberate go at the best practices (Best practices and project management: It includes management

capabilities, performance and organisation.)

a) Ensuring agreement with goals: Setting overall objectives and targets, clarifying the

problem and setting boundaries

b) Obtaining resources: identifying the resources and negotiations

c) Monitoring and learning: seeing expected and unexpected results

d) Creating appropriate structures: clarifying roles and functions and creating teams

e) Effective communication: linking the diverse and individuals contributing to the project, support

and commitment.

BEST PRACTICE DESCRIPTION

a) Ensuring agreement with goals Setting overall objectives and targets, clarifying the

problem and setting boundaries to it

b) Obtaining resources Identifying the resources, negotiating

c) Monitoring and learning Seeing the whole picture, taking a helicopter

view, managing time and other resources,

anticipating reactions from stakeholders, spotting

links and unexpected events

d) Exercising influence using individual

initiative

e) Creating appropriate structures

Moving things forward by taking action and risks

to keep the project going, especially through

difficulties

Clarifying roles and functions

Creating teams, procedures and links to the

wider organization f) Ensuring effective communication Linking the diverse groups or individuals

contributing to the project to obtain their support

and commitment


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Definition of project management; PM Vs GM; PM Vs DM; historical development of project

management; specific roles of PM; Measurement of PM (levels) and Best practices (areas)

TOPIC THREE: PROJECT CYCLE

It passes in four (4) phases :

1. CONCEPTION AND DEFINITION PHASE

i. Project identification and formulation tasks: through needs assessment, project

preliminarily design (scope, site, technical, administration, resources

requirements)

ii. Feasibility analysis and appraisal: to determine successful implementation

(technical, economic, commercial, financial, environment and management

feasibility

iii. Project definition, proposal and approval: that’s is project design and approval

(Docs: business case, feasibility and appraisal report and project proposal)

2. PROJECT PLANNING PHASE

Its includes plan, results and budget

i. Project selection and approval (selection based on criteria given…feasibility,

priority, project contribution to organisation goals and senior management)

ii. Project activities and resources planning (activities, resources and risks)

iii. Project procurement and activation (coordination and allocation of resources) {Docs: Project plan with estimation of resources, quality and scope}

3. PROJECT IMPLEMENTATION PHASE

Includes the following tasks Launching >implementation and control >completion

{Docs: final charter report, M &E reports and project manuals; explaining bringing all resources

together, execution, monitoring, evaluation, control}

4. PROJECT EVALUATION AND REFINEMENT

Its includes critical examination and analysis of the project and provide a necessary feedback,

solution to unexpected results, lesson learnt, improve policies, procedures, plans and

management in the future.

{Doc: evaluation reports and policy review reports to assess the achievements refine policies}

Four phases of project cycle


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TOPIC FOUR: PROJECT CONCEPTION AND DEFINITION

NEEEDS ANALYSIS > PROJECT FORMULATION > FEASIBILITY ANALYSIS &APPRAISAL > PROJECT

APPROVAL& ACTIVATION >

First level: Project concept paper (Needs Analysis)

The first tasks includes needs identification, needs recognition, and needs articulation and

establishment of requirements this leads to project concept paper.

The contents of project concept and definition have two important sections:

That is INTROUCTION and PROJECT STATEMENT

INTRODUCTION: the concept, elements of the concepts, business analysis, project management,

concept review, and problems during the concept phase

PROJECT STATEMENT: Project statement, elements of project statements, who does what, plan for

planning, time frame for completion, alternative approach to the preparation of project statement,

purpose level of details, and recommendations

Second level: Project brief Document (project formulation):

The project brief is a document describing the nature of the works incorporating a statement of

objectives, expected results and statement of requirements as agreed in the project formulation.


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The project brief summarizes all the relevant facts about the project as conceptualized and

formulated.

The content of a brief should include:

• Project title - identifying the relevant title for the project

• Project overall objective - stating the overall objective statement (POS) describing the

project’s desired results

• The time scale - providing the proposed start date and the required end dates

• Project deliverables - identifying the primary deliverables that will be achieved

from the project through its life cycle. SMART

• Project benefits - listing the benefits already identified in the needs analysis. This

is the lead to project appraisal

Project strategies, project skills required, and project costs

Project brief into the request for proposal:

Since feasibility study and project appraisals normally commissioned by consultant, selection is done

through solicitation using Request for Proposal (REP)/ Invitation to bid

Therefore, request for proposal normally includes (REP):

(a) Statement of work: problem description, scope of work and requirements, how work will be

measured, expectation of completion date etc

(b) Proposal requirements: proposal contents and formats, submission and deadline.

(c) Contractual provision: describes type of contract to be awarded simple or non disclosure

(d) Technical information or data: any additional data, name of contract person for requesting

additional data necessary to develop solution

Third Level: Project Feasibility analysis study and Appraisal Report (Feasibility study and Appraisal)

The needs to be addressed, the project goal, the objectives of the project and the approach to

the project have all been identified, the brief is complete. It is now time to establish and confirm

them and identify alternative options for solutions for addressing the needs.

FAA Objectives:

Exploring all possible options for implementing project

Achieving clear understanding of issues involved in the project (costs, objectives, returns

technical viability, financial viability etc)

Produce enough information for ranking

Obtain clear way forward for the future stages


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STEPS FOR CONDUCTING FEASIBLITY STUDY:

1. Appointment of the project manager and project team (economists, environmentalists experts,

legal, resources specialists etc)

2. Study the scope (quality, costs, time for completion)

3. Appointment external advisors (consultants)

4. Draw up a plan for study include milestone and responsibility (meetings >data collection

>analysis > reporting )

5. Set timetable and budget for the study

6. Organize the team

7. Conduct the study

8. Maintain control

9. Complete the study

SCOPE FOR FEASIBILITY STUDY ANALYSIS

Technical (scope, alternatives, design criteria, technological, activation and implementation

estimate inputs and outputs)

Economic (society contribution, project fit within the sector, responsiveness of the project, cost

benefit of the project)

Commercial (competitiveness, demand, distribution channel etc)

Environmental (compatibility, impacts to the environment and support)

Financial justification (profitability, sources of funds, alternative funding, project cash flow,

project accounting system etc)

Administrative/ managerial studies (capacity of implementing agency, internal, external,

linkages, management and personnel)

Social/political factors

PROJECT APPRAISAL: The feasibility study is tied together and reconciled with an appraisal of its

findings. The project appraisal provides an assessment of the projects likelihood for success.

It must address two important questions:

(a) Will the project meet its own objectives as well as the larger needs of the

organisation or community or country?

(b) How does the project compared with other projects it may be competing with for

funding?

It can be done using financial and non financial methods:

1. Financial Methods: financial analysis, business case, project financials or cost/benefit

analysis often includes four basic metrics; Net Present Value (NPV), Internal Rate of Return

IRR, payback period and cash hole.

a) Net Present Value (NPV): how much money will this project make or save, it is a calculation


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of the present value of all future cash flows expected from a project.

b) Internal rate of returns (IRR): how rapidly money will be repaid. It is a calculation of the

percentage rate at which the project will return wealth; - in effective yield of a saving account.

c) Payback period (PP): This is when will the original investment (the amount spent on the

project) be received through benefits. It is expressed in months or years.

d) Cash hole (Maximum exposure,): What is the most we will have invested at a given time?

2. Non-Financial Methods: Whenever the process of getting financial data is difficult,

expensive or time consuming, using a weighted factor scoring model may be a reasonable option

for selecting the best alternative solution.

In performing financial analysis, the process consists of 4 steps:

Step 1: Identify sources of cash flows:

Step 2: Estimate magnitude of cash flows

Step 3: Calculate the total and the cumulative cash flows

Step 4: Calculate the net cash flow using and agreed upon Discount Rate

FEASIBILITY STUDY AND PROJECT APPRAISSAL REPORT

It should consist of the following:

1. Introduction section.

i. Summary of major findings of the studies be brief, precise references and detailed

information),

ii. Description of the project (relationship with the organisation and other projects)

iii. Goals and Objectives in comprehensive and clear list

2. Individuals studies section

i. Data collected for each individual study

ii. Analysis of data collected

iii. Findings from analysis of the data

3. Conclusion and recommendations: major points of findings explain how well project meets the

goals and objectives make recommendations for the next step.

Taking into consideration we have five steps (phases) in project development that is needs analysis

>project formulation >project feasibility study and appraisal, project proposal > finally project

approval and activation .we have looked phase on basis of phase, tasks and sections. In each step

we have report as follows:


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PHASES TASKS REPORT

1 Needs analysis Project concept paper

2 Project formulation Project Brief Paper and REP

development of REP

3 Project feasibility and Appraisal study

Feasibility and Appraisal report

Feasibility: Steps, objectives and scope Appraisal methods: step for financial analysis

4 Project Project Proposal

5 Project Approval and Activation Project Charter

Fourth level: PROJECT PROPOSAL (DEFINITION)

Things to understand: Contents, purposes, formats and sections.

This comes after project feasibility and appraisal

The content of the project proposal include:

(a) The purpose and objectives: The reason for undertaking the project with expected results, the

work needed to achieve

(b) The statement of works(activities): The statement of outlines the work to be done

(c) The project organization: Defines the organization system and personnel (project team roles)

(d) Project management .system: Defines the tasks and techniques for planning and controlling the

project

(e) Project Budget: The initial project cost estimates and a statement of the maximum amount which

can be spent to justify the expected benefits

(f) Project execution plan: Project works breakdown structure and the works schedule.

(g) Project justification and benefits: The report on the appraisal of the investment criteria and

fulfillments of resources. The benefits associated with the project

(h) Risk and assumptions: Identify and record the results of risk analysis and the potential risks

reduction strategies

=purpose, objectives, activities, organisation team, management system, budget, action

plan, justification and benefits

Purpose of a project proposal:

• Specify the objectives of the proposed project

• Describe the approach to the assignment based on agreed understanding on the problem and the

Objectives

• Provide the basis of a legally binding contract when the project goes ahead

• Highlight the benefits that would accrue to the buyers by the end of the proposed project and


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even beyond

• Create confidence in and comfort with the proposing entity and his team

• Move the project audience from where their current situation to the desired situation through

the project results and accrued benefits

Formats and sections of proposal document:

The sections in a proposal include The Introduction (Summary), The Problem Section, The

Solution Section or The Proposal Section. The Method Section, the Capabilities Section, the

Budget Section and the Closing Section.

1. INTRODUCTION SECTIONS

Includes terms of references, brief background of the proposal that is ; aim, how the

proposal structured, methods used prepare the proposal, description of organisation goals,

logical lead to the problem statement an brief summary of the proposal.

2. THE PROBLEM STATEMENT BACKGROUND SECTION

Explains the baseline situations with basic facts, needs, implication of addressing the

current problem, approaches likely to be used to improve situation, some biggest

dissatisfactions with the current situation, internal and external factors for the rise of

current problem effects of these problems and what has been done to solve the problem

and what results.

3. SOLUTION STATEMENT SECTION

Mostly is referred as proposal section that covers subsection; Goals, Objectives and

Outcome or Benefits.

Goals=Statement on what to be accomplished

Objectives=how to move to desired results, shows precisely what you intend to change

Outcomes=Expected benefit (accrue) and benefits beyond this project

4. METHOD SECTION

Action plan for achieving the project, explain how project activities will satisfy the

objectives, include sequences, flow and relationships (Approach, methodology, and

programme activities subsections)

Approach =gives problem solving process by defining the action to be taken in

achieving the objectives

Methodology= how project will be conducted and describing major activities to

reach objectives

Programme activities=shows interrelationship among project activities as prepares

programme activities assigns key inputs to the individual activities.

5. QUALIFICATION SECTION

Discusses the abilities of the team and capabilities, competences, skills, knowledge and

experiences in a given sector.


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6. BUDGET SECTION

Includes human resources inputs and their remunerations costs, non human inputs,

overheads and contingences

7. PAYMENTS DISMBURSEMENTS

Shows how and when the payments are to be done

8. CLOSING SECTIONS

Sometimes called conclusions section or recommendation, tell sponsor what you want

from them to do and brief about proposing agency

Fifth Level: PROJECT APPROVAL AND ACTIVATION:

At this stage project proposal is subjected to an assessment by the sponsor or senior management

for approval. Expert explores certain areas of the project includes:

If proposal satisfy the objectives

Will it operate as expected

Will it brought successfully into existence (technical feasibility, references and methods)

Project team have required skills

Availability of required physical resources

If benefits exceeds cost

Project proposal in sequence

Is it economically sound

Acceptable to the organisation

Is the project risks acceptable

Can project be delivered on time

Based on the above questions, sponsor make a decision on either to give formal approval or

authoritarization to the project.

EXISTENCE OF PROJECT CHARTER by recognizing and approval of the project, and

confirm senior management support for the project need and committing resources to the

project activities. The project charter briefly gives the statement of work, expected end-items

or results and required resources. If work is being performed under a contract then the charter

will serve as the terms of Reference document for the contract or the contract document itself.

The purpose of the charter is to confirm the agreement about the project scope and resources to be

committed to the project between the project sponsors and senior management. Moreover,

description of the project with objectives, anticipated project outcome, primary stakeholders,

project customers, preliminarily project plan, formal project signatures (manager, sponsor and

senior management).


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TOPIC FIVE: PITFALLS OF PROJECTS AND LINKING PROJECTS TO BUSINESS STRATEGY

WHY PITFALLS IN THE FOUNDATION OF THE PROJECT

Can be seen into 2 categories:

1. Insufficient support

2. Poor project definition

INSUFICIENT SUPPORT;

Senior management support the project attitudes,

Project definition not aligned to the business plans

Principles and policies of the project not defined

Lack of clear senior management (roles and responsibilities)

Lack of effective management (agreement of stakeholder requirements)

Lack of clear proven skills and approach to the project management and risk management

POOR PROJECT DEFINITION;

Imprecise project goals: as result of lack of clear links between the project and the organisation

key strategic priorities and agreed measures of success

Undefined limits of scope: clear defined milestone, plan and clear responsibility chart.

Unbalanced level of ambition: feasibility study needs to focus on all areas technical, financial,

economic, commercial, managerial, and environmental, and not only technical aspects.

HOW TO LINK PROJECTS TO BUSSINESS STRATEGIES

Means making business more from where it is now to where it ought to be .projects are linked with

business strategy of an organisation in terms of how they are managed. Managing projects

strategically requires:

Check and confirm project is appropriate vehicle towards achieving business strategy

Develop various options for implementing project

Understanding key opportunities and threats that projects faces in its environment and

develop internal strength and weakness

Interrelating projects with other to achieve corporate strategy (it helps issues are identified

and addressed in strategic corporate plan in order to avoid spreading around too thinly

around too fronts.

Project Planning and Management Summary 505 by Avit Theophil

Education

Transcript of Project Planning and Management Summary 505 by Avit Theophil