PROJECT PLANNING, APPRAISAL AND EVALUATION
AAA 403
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Module overview
Communities are confronted with challenges which require solutions. Depending on project, financial
resources are required to implement the project successfully. Funders of projects require projects which are
bankable with transparency. The module Project Planning, Appraisal and Evaluation introduces students to
the project concept, from planning to evaluation of completed projects. It equips students with the prerequisite skills to successfully implement projects.
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Table of Contents
Module overview ............................................................................................................................................ ii
Table of Contents ..........................................................................................................................................iii
List of Tables ................................................................................................................................................ vi
List of Figures ............................................................................................................................................... vi
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2
Introduction ........................................................................................................................................... 1
1.1
What is a project? .......................................................................................................................... 1
1.2
Programme .................................................................................................................................... 1
1.3
Portfolio ......................................................................................................................................... 1
1.4
Common attributes present in all projects ...................................................................................... 1
1.5
Delivery and Deliverables .............................................................................................................. 2
1.6
Characteristics of Projects ............................................................................................................. 2
1.7
Sources of project concepts or ideas ............................................................................................. 3
1.8
The five dimensions of a project .................................................................................................... 4
1.9
Understanding the five dimensions of a project ............................................................................. 4
1.10
Stages of a project: Life cycle ........................................................................................................ 4
The Project Concept ............................................................................................................................. 5
2.1
2.1.1
Why Is Project Organization Important? ................................................................................ 6
2.1.2
Functional structure .................................................... Ошибка! Закладка не определена.
2.1.3
Project Structure ......................................................... Ошибка! Закладка не определена.
2.1.4
Matrix structure ........................................................... Ошибка! Закладка не определена.
2.2
Which Structure is appropriate for your project? ............................................................................ 6
2.3
Project work vs Functional work .................................................................................................... 6
2.3.1
Project work ........................................................................................................................... 6
2.3.2
Functional Management ........................................................................................................ 8
2.4
3
Project organizational structures and their links with project management .................................... 5
Features of an Organization Structure ........................................................................................... 9
The Project Cycle....................................................................... Ошибка! Закладка не определена.
3.1
Elements of the project cycle .............................................. Ошибка! Закладка не определена.
3.1.1
Identification ............................................................... Ошибка! Закладка не определена.
3.1.2
Preparation ................................................................. Ошибка! Закладка не определена.
3.1.3
Appraisal..................................................................... Ошибка! Закладка не определена.
3.1.4
Implementation and monitoring................................... Ошибка! Закладка не определена.
3.1.5
Evaluation ................................................................... Ошибка! Закладка не определена.
3.2
Project identification............................................................ Ошибка! Закладка не определена.
III
3.2.1
Approaches to project identification of investment projectsОшибка!
определена.
3.2.2
3.3
4
5
Approaches to problem identification .......................... Ошибка! Закладка не определена.
Project preparation ............................................................. Ошибка! Закладка не определена.
Steps involved in project formulation .......................... Ошибка! Закладка не определена.
3.3.2
Project Preparation –the Logical Framework Approach and the Logical Framework Matrix
Ошибка! Закладка не определена.
3.3.3
Problem analysis ........................................................ Ошибка! Закладка не определена.
3.4
How to proceed with project identification........................... Ошибка! Закладка не определена.
3.5
Situation Analysis ............................................................... Ошибка! Закладка не определена.
3.6
Socio-economic and Gender Analysis ................................ Ошибка! Закладка не определена.
3.7
Identification of Potential Projects ....................................... Ошибка! Закладка не определена.
3.7.1
Review of Findings ..................................................... Ошибка! Закладка не определена.
3.7.2
Stakeholder Priorities for Development ...................... Ошибка! Закладка не определена.
3.7.3
Stakeholder contributions ........................................... Ошибка! Закладка не определена.
Project Planning ......................................................................... Ошибка! Закладка не определена.
4.1
Steps involved in Project Planning...................................... Ошибка! Закладка не определена.
4.2
Dividing the work into component tasks and milestones ..... Ошибка! Закладка не определена.
4.3
Project Milestones .............................................................. Ошибка! Закладка не определена.
4.4
Estimating Time .................................................................. Ошибка! Закладка не определена.
4.5
Ordering the Tasks ............................................................. Ошибка! Закладка не определена.
4.6
People in your Project Team............................................... Ошибка! Закладка не определена.
4.7
Dealing with Costs .............................................................. Ошибка! Закладка не определена.
4.8
Can you do the project? Should you do the project? .......... Ошибка! Закладка не определена.
Project Appraisal ........................................................................ Ошибка! Закладка не определена.
Key Steps in Project Appraisal............................................ Ошибка! Закладка не определена.
5.1.1
Concept Analysis ........................................................ Ошибка! Закладка не определена.
5.1.2
Concept Brief .............................................................. Ошибка! Закладка не определена.
5.1.3
Project Organization ................................................... Ошибка! Закладка не определена.
5.1.4
Project Approval ......................................................... Ошибка! Закладка не определена.
Project Implementation .............................................................. Ошибка! Закладка не определена.
6.1
7
не
3.3.1
5.1
6
Закладка
Policy guidelines about project implementation .................. Ошибка! Закладка не определена.
Project Monitoring and Evaluation ............................................. Ошибка! Закладка не определена.
7.1
Monitoring ........................................................................... Ошибка! Закладка не определена.
7.1.1
Role of Monitoring....................................................... Ошибка! Закладка не определена.
IV
7.1.2
Forms of monitoring .................................................... Ошибка! Закладка не определена.
7.1.3
Why are Projects Monitored?...................................... Ошибка! Закладка не определена.
7.1.4
Project Monitoring ....................................................... Ошибка! Закладка не определена.
7.1.5
Aspects of Monitoring and Evaluation in Developing CountriesОшибка!
определена.
Закладка
не
7.1.6
Decision-making in monitoring and design of project monitoring systemОшибка! Закладка
не определена.
7.1.7
Characteristics of an excellent Monitoring System ..... Ошибка! Закладка не определена.
7.1.8
Monitoring tools .......................................................... Ошибка! Закладка не определена.
7.2
Project evaluation ............................................................... Ошибка! Закладка не определена.
7.2.1
Purpose of Evaluation ................................................. Ошибка! Закладка не определена.
7.2.2
Usage and Limitations of Different Types of EvaluationsОшибка!
определена.
7.3
8
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Final Remarks .................................................................... Ошибка! Закладка не определена.
Critical Steps in Project Closure ......................................... Ошибка! Закладка не определена.
Project Management .................................................................. Ошибка! Закладка не определена.
9.1
Management....................................................................... Ошибка! Закладка не определена.
9.2
What is Project Management? ............................................ Ошибка! Закладка не определена.
9.3
Organizing for project management efficiency .................... Ошибка! Закладка не определена.
9.4
Conclusion .......................................................................... Ошибка! Закладка не определена.
The project manager and team members .................................. Ошибка! Закладка не определена.
10.1
Project Manager ................................................................. Ошибка! Закладка не определена.
10.1.1
Project Manager Role ................................................. Ошибка! Закладка не определена.
10.1.2
Project Manager’s Skills ............................................. Ошибка! Закладка не определена.
10.2
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Project Closure .......................................................................... Ошибка! Закладка не определена.
8.1
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Закладка
The Project Team ............................................................... Ошибка! Закладка не определена.
10.2.1
Project Manager ......................................................... Ошибка! Закладка не определена.
10.2.2
Project Team Member ................................................ Ошибка! Закладка не определена.
10.2.3
Project Sponsor .......................................................... Ошибка! Закладка не определена.
10.2.4
Typical make up of project team ................................. Ошибка! Закладка не определена.
10.2.5
Role of Team Members .............................................. Ошибка! Закладка не определена.
Project stakeholders .................................................................. Ошибка! Закладка не определена.
11.1
What is a Stakeholder?....................................................... Ошибка! Закладка не определена.
11.2
Why do we need to identify stakeholders? ......................... Ошибка! Закладка не определена.
11.3
How can we classify stakeholders? .................................... Ошибка! Закладка не определена.
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11.4
How can stakeholders affect a project? .............................. Ошибка! Закладка не определена.
11.5
How should stakeholders be managed? ............................. Ошибка! Закладка не определена.
11.6
Clients, Customers and other stakeholders ........................ Ошибка! Закладка не определена.
11.6.1
Client .......................................................................... Ошибка! Закладка не определена.
11.6.2
The Project Customer ................................................. Ошибка! Закладка не определена.
11.6.3
Other Stakeholders ..................................................... Ошибка! Закладка не определена.
List of Tables
Table 2.1 Comparison between functional work and project work ................................................................. 8
Table 3.1 The General Structure of the LogFrame ............................. Ошибка! Закладка не определена.
Table 4.1 Example of Task breakdown for painting your room ........... Ошибка! Закладка не определена.
List of Figures
Figure 2.1 Functional structure in a project organization .................... Ошибка! Закладка не определена.
Figure 2.2 Organization in a project structure ..................................... Ошибка! Закладка не определена.
Figure 2.3 Matrix structure organization ............................................. Ошибка! Закладка не определена.
Figure 2.4 Organization under strong matrix structure........................ Ошибка! Закладка не определена.
Figure 2.5 Various skills integration in a project management cycle.............................................................. 7
Figure 3.1 Elements of the project cycle ............................................. Ошибка! Закладка не определена.
Figure 3.2 Conceptual example of the problem .................................. Ошибка! Закладка не определена.
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1.1
Introduction
What is a project?
A Project is a temporary, unique and progressive attempt or endeavor made to produce some kind of a
tangible or intangible result (a unique product, service, benefit, competitive advantage, etc.). It usually
includes a series of I nterrelated tasks that are planned for execution over a fixed period of time and within
certain requirements and limitations such as cost, quality, performance, etc.
Essentially, a project is a task with a known end point. For example, constructing a new fowl run is a project,
the end point being when the fowl run is complete, and developing a new piece of computer software is a
project, launching a new seed variety for a seed company.
Usually the term ‘project’ is applied to tasks with some degree of complexity.
1.2
Programme
A group of projects related to one another and which are often managed and coordinated as a group instead
of independently. In this way, the organization obtain benefits and control not available from managing them
individually.
1.3
Portfolio
A group of different programs or projects within the same organization, which may be related or unrelated to
one another. For e.g. a company can have the following portfolio:
 [Project A+ Project B] = Program 1
1.4
Common attributes present in all projects
 has an objective/ objectives
 is given a specific time frame, has either a fixed beginning and end or a fixed duration. Getting from
the beginning to the end of a project typically involves a definable sequence of steps or activities.
 has a structured system of activities and outcomes
 needs certain resources. Resources can be divided into human resources, financial resources,
infrastructure, etc.
 Every project produces a unique outcome. These project outcomes or end results also have specific
goals of quality and performance. Remember: When a project gets done, something new exists that
didn’t exist before.
 Projects (hopefully) follow a planned, organized approach to meet their objectives.
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 A project usually involves a team of people to get it done.
 Projects always have a unique set of stakeholders (including the project team, the customers, the
project manager, the corporate executives, the government representatives, or other people who
have an interest in the project).
 Stakeholders almost always bring differing expectations about end results to the project. These
expectations must be managed for the completed project to be considered a success.
 Every project is a unique undertaking and therefore has a certain level of uncertainty and risks.
1.5
Delivery and Deliverables
There is a word that project managers and people regularly involved in projects use all the time; it is delivery.
Delivery in the context of projects simply means getting the things done you set out to do. Your role as a
project manager is therefore to deliver the project. Delivery is a useful piece of jargon as it saves having to
write “completing the project to the expected time and cost with the desired outcome” again and again!
Deliverables are what is delivered by a project. In a project the deliverables wanted are defined at the start
of the project, and your success as a project manager is in delivering them in the planned time and to the
expected cost.
1.6
Characteristics of Projects
 Objectives -A project has a set of objectives or a mission. Once the objectives are achieved the project
is treated as completed.
 Life cycle -A project has a life cycle. The life cycle consists of five stages i.e. conception stage, definition
stage, planning & organizing stage, implementation stage and commissioning stage.
 Uniqueness -Every project is unique and no two projects are similar. Setting up an abattoir and seed
grading are two different projects having unique features.
 Team Work -Project is a team work and it normally consists of diverse areas. There will be personnel
specialized in their respective areas and co-ordination among the diverse areas calls for team work.
 Complexity -A project is a complex set of activities relating to diverse areas
 Risk and uncertainty -Risk and uncertainty go hand in hand with project.
 Customer specific nature -A project is always customer specific. It is the customer who decides upon
the product to be produced or services to be offered and hence it is the responsibility of any organization
to go for projects/services that are suited to customer needs.
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 Change -Changes occur throughout the life span of a project as a natural outcome of many
environmental factors. The changes may vary from minor changes, which may have very little impact on
the project, to major changes which may have a big impact or even may change the very nature of the
project.
 Projects have a purpose -projects have clearly-defined aims and set out to produce clearly-defined
results. Their purpose is to solve a “problem”, and this involves analyzing needs beforehand. Suggesting
one or more solutions, it aims at lasting social change.
 Projects are realistic -their aims must be achievable, and this means taking account both of
requirements and of the financial and human resources available.
 Projects are limited in time and space -they have a beginning and an end, and are implemented in a
specific place and context.
 Projects are complex -projects call on various planning and implementation skills, and involve various
partners and players.
 Projects are collective -projects are the product of collective endeavor. They are run by teams,
involve various partners and cater for the needs of others.
 Projects are unique -all projects stem from new ideas. They provide a specific response to a need
(problem) in a specific context. They are innovative.
 Projects are an adventure -every project is different and ground-breaking; they always involve some
uncertainty and risk.
 Projects can be assessed -projects are planned and broken down into measurable aims, which must
be open to evaluation.
 Projects are made up of stages: projects have distinct, identifiable stages
1.7
Sources of project concepts or ideas
There are many sources from which project concepts can be derived from. They can be classified under the
following five categories.
i)
Technicians (Administrators/Managers and Sectoral Experts)
ii) Planners and Policy Makers
iii) Entrepreneurs
iv) Political Leadership
v) Donors and Foreign Missions
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1.8
The five dimensions of a project
These are: scope; quality; time; cost and risk.
Case study of a simple project to illustrate the dimensions of a project.
Case 1
You are going to redecorate some rooms in your house. So you sit down and do some thinking about this
decorating and decide that you will decorate your front room and your dining room, you will use three quarts
of paint on every wall. You do some calculations and find out that the paint will cost you $100, and it will take
you four days to do the work using normal paint brushes. A friend has a machine that can spray the walls,
which is much quicker. Unfortunately, it does not always work and is liable to spray paint all over the place,
including any uncovered nearby furniture, so you choose not to use it.
1.9
Understanding the five dimensions of a project
The information in Case 1 has defined some important things about your project. You have defined the:
 scope –scope is the project manager’s word for what your project encompasses. In this case your
scope is to paint the front room and dining room.
 quality -you have decided to use three quarts of paint on all the walls. Quality is a complex concept
and depending on what a project produces, the way quality is measured will vary considerably.
 time –it will take four days.
 cost –it will cost $100.
 risk -you are choosing the low-risk option (painting by hand). There is an alternative high risk option
of doing it with the spray painting machine. If you choose to use this machine, you may do the work
more quickly, but there are risks to your furniture and it may not work.
1.10 Stages of a project: Life cycle
Every project goes through various stages in its development. These stages vary depending on the type of
project. For example, a project to develop a new seed variety has different stages compared to a project to
develop an advertising campaign for a new maize seed variety.
However, at a generic level projects must go through common steps such as:
i)
Specifying in detail what the project is for.
ii) Planning the project and working out how it will be done.
iii) Doing the project and creating the deliverables according to the plan.
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iv) Checking that the deliverables are as you originally wanted and meet the needs.
v) Closing the project down.
These five steps defined are a simple project lifecycle. The lifecycle is a skeleton framework which you can
build your project around.
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The Project Concept
The main elements of the project concept are:
 Project Title
 Sector
 Type of Proposal
 Project Location
 Rationale/Justification
 Expected Project Outputs
 Project activities
 Environmental Impact on Physical, Biological, Socio-cultural
 Considered Project Alternatives and Reasons for Rejections
 Cost and Financing
 Details of already offered or prospective external assistance to projects in the related sector/ministry
 Implementation
2.1
Project organizational structures and their links with project management
The term project organization refers to the style of coordination, communication, and management the project
team uses throughout a project lifecycle. By applying project organization, you optimize resources, provide
clear communication about roles and responsibilities, and reduce potential roadblocks. A project organization
is a structure that facilitates the coordination and implementation of project activities. Its main reason is to
create an environment that fosters interactions among the team members with a minimum amount of
disruptions, overlaps and conflict. One of the important decisions of project management is the form of
organizational structure that will be used for the project.
A project management organizational structure is used to determine the hierarchy and authority of people
involved in a specific project. The structure defines each team member’s function and the reporting lines on
a chart for team members to reference during a project.
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2.1.1 Why Is Project Organization Important?
Project managers use project organization to align team members before and during a project. The process
minimizes disruption to your workflow and conflict among team members, as well as leads to maximum
productivity among team members involved in a project. While excellent project organization strategy and
execution are important, you also need to consider the opportunity cost of a poorly organized project.
The positive attributes of project organization are to prioritize and better allocate resources, keeping in mind
that the project will have various stakeholders. What does it cost if it’s not working for you? If team members
are not focused on the right priorities, they will do x, y, and z outside of the project priorities and inhibit
progress. If people aren’t clear where they’re going, they’ll quit without knowing the wants, needs, and
expectations of everyone around them. What then is the cost to attract, hire, retrain, and lose productivity?
Creating and communicating a project management organization structure is one tool to help connect
strategy and vision across those involved in the project. Developing a project organization structure ultimately
reduces disruptions, overlaps, conflicts, uncertainty, and confusion before a project even begins.
There are three types of project organizational structures: Functional, Project and Matrix structures.
COVERED WITH THE ASSIGNMENT
2.2
Which Structure is appropriate for your project?
Each possible organizational structure has both advantages and disadvantages. Before you reorganize, be
sure that the advantages outweigh the disadvantages to your organization. The advantages must also be
significant enough to make up for the confusion and pain of making the change. Reorganizing has a
significant impact on any organization. Don’t underestimate the lost productivity during the time it takes to
make the change. It will take time for people to begin to function efficiently under the new structure.
Selecting the right structure depends on:
 The nature of the company or the organisation
 The nature of business or industry
 The overall strategy of the company/ organisation [this changes over time]
2.3
Project work vs Functional work
2.3.1
Project work
 a project is ‘‘a temporary endeavor undertaken to create a unique product or service
 Projects are temporary because they have a definite beginning and a definite end.
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 They are unique because the product or service they create is different in some distinguishing way
from similar products or services.
 The construction of a headquarters building for a company is an example of a project.
 The unique work is defined by the building plans and has a specific beginning and end.
 A project manager is responsible for the project, overseeing the contractors and managing the
schedule and budget.
2.3.1.1
Project Management
Project management is the process of initiating, planning, executing, controlling, and closing the work of a
project to achieve a specific objective. Project management requires effective integration of various skills,
Figure 2.4.
Integration management
Scope
management
Time
management
Process groups
Initiating
Planning
Quality
management
Monitoring &
Controlling
Executing
Risk management
Closing
Human resource
management
Cost
management
Procurement
management
Communications
management
Figure 2.1 Various skills integration in a project management cycle
2.3.1.2
Distinguishing characteristics of project work
 Project work is a unique, temporary endeavor.
 A project manager manages a specific project.
 People and other resources are not assigned to project managers on an ongoing basis, except for
project management support.
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 A project manager is responsible for the approved objectives of a project —such as budget,
schedule, and specifications.
2.3.2
Functional Management
Functional management is managing the routine activities in the organization relating to various functions
such as production, sales, and marketing, finance etc. in order to achieve the overall objective of the
organization. Thus functional work is ongoing work.
2.3.2.1
Distinguishing characteristics of functional work
 Functional work is ongoing, routine work.
 Managers manage the specific function and provide technical direction.
 People and other resources are assigned to the functional department.
 Functional departments are responsible for the approved objectives of the function, such as technical
competency, standards of performance and quality, and efficient use of resources.
 Functional work is typically structured as a hierarchical organization with traditional formal lines of
authority.
2.3.2.2
Comparison of Functional vs Project work
Table 2.1 Comparison between functional work and project work
Functional
Type of work
Project
Responsiveness to customers
and changing environments
Unique, no rehearsal. Often
involves change.
Operations, accomplishing effective Completing the project
work
Managing people
Managing work
On-going operational budget
Project budget to fund specific
projects
Less responsive –longer response More responsive –shorter
times
responsive times
Consistence and standards
Industry standards
Cross cultural relevancy
Varies across cultures
May have few standards as work
is unique
More constant across cultures
Risk
On-going work is stable and less
risky
Will have little visibility if standards
are not met
Higher risk as work is unique and
unknown
Obviously noted when project
objectives have not been met
Focus
Management responsibility
Budgets
Visibility
Repeated, on-going.
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2.4
Features of an Organization Structure
The features of an organizational structure define the roles and relationships among members of the project,
as well as between projects. These relationships are determined by authority, communication lines,
coordination, supervision, and responsibilities. Specifically, the primary features of an organizational
structure are as follows:
 Hierarchy: The hierarchy should delineate a clear line of authority and define decision-making
responsibilities.
 Division of Labor: This refers to the workload (managerial, task oriented, etc.) associated with the
roles.
 Span of Control: Here, define who manages whom. Reporting structures will be based on this
concept.
 Position Type (Line vs. Staff): A line position is a team member who is directly involved with the
product. A staff position supports those in line positions, but are not directly involved with the product.
 Centralization: This defines how the decision making occurs. In a centralized project, few people
own decisions, whereas in a decentralized project, decision-making authority is distributed across
the organization.
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