1 project & project cycle management

1. 1
PROJECT
&
PROJECT CYCLE MANAGEMENT

2. 2
PROJECT DEFINITION
“A group of activities that have to be performed in a
logical sequence to meet preset objectives
outlined by the client”
OR
“ Temporary endeavors undertaken to create unique
products, services or results ”

3. 3
PROJECT
The core of the project design therefore is deciding
•WHAT to improve or change
•HOW the project can bring about or contribute
to the improvement or change

4. 4
Characteristics of a Typical ProjectCharacteristics of a Typical Project

All projects are concerned with Change – creating All projects are concerned with Change – creating
something new;something new;

All projects exist for a limited and defined period of All projects exist for a limited and defined period of
time: their lifespan consists of a set of activities with a time: their lifespan consists of a set of activities with a
beginning date and a target end date (deadline);beginning date and a target end date (deadline);

These activities must be performed in a logical order;These activities must be performed in a logical order;

All projects have clear and measurable objectives, All projects have clear and measurable objectives,
targets or goals. These objectives must be achieved targets or goals. These objectives must be achieved
within specific constraints, especially time and costs within specific constraints, especially time and costs
(budget);(budget);

Each project is a new and unique process.Each project is a new and unique process.

5. 5
What is Project Management?What is Project Management?
Project Management is the application of knowledge, Project Management is the application of knowledge,
skills, tools and techniques to project activities in order to skills, tools and techniques to project activities in order to
meet or exceed stakeholder needs and expectations meet or exceed stakeholder needs and expectations
from the project.from the project.
Purpose of Project Management.Purpose of Project Management.
The purpose of Project Management is to identify, The purpose of Project Management is to identify,
establish, coordinate and monitor activities, tasks and establish, coordinate and monitor activities, tasks and
resources necessary for a project to produce a product resources necessary for a project to produce a product
and/or service meeting the agreed requirements.and/or service meeting the agreed requirements.

6. 6
Different Components of Project Management Different Components of Project Management
Project Integration ManagementProject Integration Management
Processes required to ensure that various elements of the project Processes required to ensure that various elements of the project
are properly coordinated.are properly coordinated.
Project Scope and Time ManagementProject Scope and Time Management
Processes required to ensure that the project includes all the work Processes required to ensure that the project includes all the work
required to complete it successfully in stipulated time. required to complete it successfully in stipulated time.
Project Cost and Quality ManagementProject Cost and Quality Management
Processes required to ensure quality and that the project is Processes required to ensure quality and that the project is
completed within the approved budget.completed within the approved budget.
Project Human Resource ManagementProject Human Resource Management
Processes required to make the most effective use of the people Processes required to make the most effective use of the people
involved in the implementation of the project.involved in the implementation of the project.

7. 7
Key Dimensions of ProjectsKey Dimensions of Projects

CostCost

Time Time

QualityQuality

8. 8
Key Dimensions of a ProjectKey Dimensions of a Project
Quality
Cost
Scope
Time

9. 9
Project Cycle ManagementProject Cycle Management

A logical sequence in which the projects are identified, A logical sequence in which the projects are identified,
prepared, approved and implemented is called project prepared, approved and implemented is called project
cycle.cycle.

It is an approach in project management used to guide It is an approach in project management used to guide
management activities and decision-making procedures management activities and decision-making procedures
during the life-cycle of a project, from the first idea until during the life-cycle of a project, from the first idea until
the last ex-post evaluation. the last ex-post evaluation.

10. Project Cycle ManagementProject Cycle Management
Within all institutions the cycle shares three common themes:Within all institutions the cycle shares three common themes:
  

The cycle defines the key decisions, information The cycle defines the key decisions, information
requirements and responsibilities at each phase;requirements and responsibilities at each phase;

The phases in the cycle are progressive – each phase needs The phases in the cycle are progressive – each phase needs
to be completed for the next to be tackled with success.to be completed for the next to be tackled with success.

The cycle draws on evaluation to build experience from The cycle draws on evaluation to build experience from
existing projects into the design of future projects.existing projects into the design of future projects.
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11. Stages in PCMStages in PCM

There are eight broad stages of project cycle:There are eight broad stages of project cycle:

Project IdentificationProject Identification

Project PreparationProject Preparation

Project AppraisalProject Appraisal

Project ApprovalProject Approval

Project ImplementationProject Implementation

Project MonitoringProject Monitoring

Project CompletionProject Completion

Project EvaluationProject Evaluation
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12. Project CycleProject Cycle
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13. 13
Project IdentificationProject Identification
The possible sources of project identification are;The possible sources of project identification are;

Development PlansDevelopment Plans

Sector SurveysSector Surveys

Elected RepresentativesElected Representatives

Immediate Nature/Calamity ProjectsImmediate Nature/Calamity Projects

Expansion of On-going ProgrammesExpansion of On-going Programmes

14. 14
Project FormulationProject Formulation
Projects are usually prepared by the executing organizations/ Projects are usually prepared by the executing organizations/
agencies and it consists of two stages:agencies and it consists of two stages:

Feasibility StudyFeasibility Study

Project DocumentProject Document
Important Considerations:Important Considerations:

Survey of the areaSurvey of the area

Availability of resourcesAvailability of resources

Yearly allocationYearly allocation

Capacity of Implementing agencyCapacity of Implementing agency

15. 15
Project AppraisalProject Appraisal

Critical examination of the project from all aspects is Critical examination of the project from all aspects is
called appraisal. called appraisal.

Analysis of prospective costs and benefits that leads to Analysis of prospective costs and benefits that leads to
desirability for committing resources.desirability for committing resources.

It is carried out at two stages:It is carried out at two stages:

Internal AppraisalInternal Appraisal

External AppraisalExternal Appraisal

16. 16
Project ImplementationProject Implementation

Project implementation entails intense activities and a Project implementation entails intense activities and a
variety of physical work.variety of physical work.

Implementation of activities and financial management Implementation of activities and financial management
should be undertaken in accordance with all the should be undertaken in accordance with all the
established guidelines, procedures and regulations established guidelines, procedures and regulations
guiding the project.guiding the project.

Implementation of the project is the responsibility of Implementation of the project is the responsibility of
executing agencies through;executing agencies through;

Organization StaffOrganization Staff

Project StaffProject Staff

17. 17
Project MonitoringProject Monitoring
It is the systematic review of development projects at It is the systematic review of development projects at
appropriate intervals during implementation through well appropriate intervals during implementation through well
defined indicators.defined indicators.
Benefits of MonitoringBenefits of Monitoring

Effective ImplementationEffective Implementation

Timely CompletionTimely Completion

Completion within approved costCompletion within approved cost
Types of MonitoringTypes of Monitoring

Financial MonitoringFinancial Monitoring

Physical/Quantitative MonitoringPhysical/Quantitative Monitoring

Qualitative MonitoringQualitative Monitoring

18. 18
Project MonitoringProject Monitoring

Levels of MonitoringLevels of Monitoring

Internal MonitoringInternal Monitoring

External MonitoringExternal Monitoring
Key Monitoring IndicatorsKey Monitoring Indicators

Allocation of FundsAllocation of Funds

Release of FundsRelease of Funds

Time SchedulingTime Scheduling

Technical ParametersTechnical Parameters

Physical ProgressPhysical Progress

19. 19
Project CompletionProject Completion
It is a report submitted immediately after the completion It is a report submitted immediately after the completion
of the project. Major emphasis of the report is on the of the project. Major emphasis of the report is on the
following:following:

Achievements against Targets/Results of the project;Achievements against Targets/Results of the project;

Actual expenses vs. budgeted for the project;Actual expenses vs. budgeted for the project;

Reasons for:Reasons for:

Under achievement if the desired targets are not achieved;Under achievement if the desired targets are not achieved;

Delay if there is time over run in the project.Delay if there is time over run in the project.

20. 20
Project EvaluationProject Evaluation
Project evaluation examines all aspects of the project Project evaluation examines all aspects of the project
design and assess the overall progress towards the design and assess the overall progress towards the
ultimate objectives.ultimate objectives.
Types of EvaluationTypes of Evaluation

End of project evaluationEnd of project evaluation

Post project completion evaluationPost project completion evaluation

21. Benefits of PCMBenefits of PCM

PCM is an important function of project PCM is an important function of project
management and can assist local organizations management and can assist local organizations
to learn from past experiences, improve decision to learn from past experiences, improve decision
making, streamline communication between making, streamline communication between
various stakeholders and above all how far the various stakeholders and above all how far the
objectives of the project have been achieved.objectives of the project have been achieved.
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22. Benefits of PCMBenefits of PCM
When PCM is applied effectively, the following benefits When PCM is applied effectively, the following benefits
can be realized;can be realized;

Goal/Objective Oriented: Goal/Objective Oriented: Implementation of projects Implementation of projects
will be in accordance with predetermined objectives and will be in accordance with predetermined objectives and
not on the whims of individualsnot on the whims of individuals

Coordinated Project Management: Coordinated Project Management: Project Project
execution will be coordinated and overseen by appointed execution will be coordinated and overseen by appointed
project managers, and not by those randomly picked project managers, and not by those randomly picked
without proper consideration.without proper consideration.
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23. Benefits of PCMBenefits of PCM

Sound & Objective Appraisal: Sound & Objective Appraisal: The project will be The project will be
designed and appraised based on sound research and designed and appraised based on sound research and
feasibility criteria, and not on voting and consensus feasibility criteria, and not on voting and consensus
which does not capture the viability issueswhich does not capture the viability issues

Long Term Planning: Long Term Planning: PCM improves long-term PCM improves long-term
planning because the policy setting’ stage includes planning because the policy setting’ stage includes
strategic review of long term goals and objectives;strategic review of long term goals and objectives;

Increased Accountability. Increased Accountability. There will be increased There will be increased
accountability for results because individuals and teams accountability for results because individuals and teams
will be assigned specific results that they must deliver;will be assigned specific results that they must deliver;
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24. Benefits of PCMBenefits of PCM

Standard Methods and Procedures. Standard Methods and Procedures. As opposed to As opposed to
a mixed up process of managing a project, the PCM a mixed up process of managing a project, the PCM
approach introduces a standard method and procedures approach introduces a standard method and procedures
for running projects stage by stage, which provides for running projects stage by stage, which provides
stakeholders with a road map of expected results, at stakeholders with a road map of expected results, at
each stage of the process;each stage of the process;

Increased Efficiency in Planning and Use of Increased Efficiency in Planning and Use of
Resources. Resources. Through the PCM method, project Through the PCM method, project
resources are planned for before the project is executed, resources are planned for before the project is executed,
and adjustments are made during project and adjustments are made during project
implementation;implementation;
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25. Benefits of PCMBenefits of PCM

Stakeholder Ownership. Stakeholder Ownership. This is enhanced because This is enhanced because
PCM is a participatory process;PCM is a participatory process;

Formal Documentation. Formal Documentation. PCM requires PCM requires
documentation of procedures, processes and results. documentation of procedures, processes and results.
This ensures that there is an accurate record of This ensures that there is an accurate record of
information for every project step;information for every project step;

Enhanced Monitoring and Evaluation. Enhanced Monitoring and Evaluation. PCM sets PCM sets
in place a process of monitoring based on agreed in place a process of monitoring based on agreed
milestones. Without PCM, it is hard to create an effective milestones. Without PCM, it is hard to create an effective
monitoring framework and results are hard to establishmonitoring framework and results are hard to establish
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